Under pressure H1, but better than Rusal

Despite expected weakness in the Metals segment (evident in Rusal’s results), EN+ reported somewhat better – although still weak – H1 results. Power provided a valuable cushion with this segment’s standalone deleveraging also helping to reduce the group-level obligations. While the challenges in Metals may take a bit longer to subside (completely), EN+ has reliable support from the Power segment. Overall, a well-balanced business proposition but one that continues to be disregarded by the market

Weak 2022 results, but survival instinct remains intact

Although En+’s 2022 results were weaker than expected, they were far from a complete disaster. Besides aluminium’s post-war gains (albeit capped due to cost challenges), the firm’s power proposition was an added advantage. While it is difficult to predict a normalisation calendar for En+ (and other Russian miners), it remains a critical natural resources/energy firm and, hence, should sooner or later see its underlying virtues being acknowledged by markets.

Strong H1 results, despite serious geo-political risks

En+ has reported strong H1 results, with healthy contributions from both segments – where pricing dynamics were very strong. Although, the impact of disrupted upstream operations in Aluminium was evident. Nevertheless, the fact that the firm’s geographic sales exposure to western markets was ‘largely’ steady, despite serious geo-political risks, was a promising signal. Overall, despite near-term price normalisation risks, given the promising long-term focus market dynamics, En+ remains an attrac

Exceptional 2021 results; various uncertainties ahead, but partly-cushioned by energy proposition

On the back of promising focus markets, En+ reported impressive 2021 results. Deleveraging momentum was sustained. With market dynamics becoming even more favourable, after the Ukraine-Russia war outbreak, the firm should have benefited in a big way. However, considering the challenges/risks due to En+’s Russian lineage, the way forward remains uncertain. Although ownership of domestically-focused energy division is a valued cushion. Add on top the indirect stake in Nornickel (via Rusal), En+ re

A multi-faceted green proxy

With aluminium on course to re-attain its past glory, hydropower demand and, hence, pricing witnessing strong and sustainable tailwinds, and Nornickel remaining a fortified proposition, En+ is set for a major re-rating. Even though re-emerging COVID-19 risks have rekindled some macro risks, the firm remains a beneficiary of near sacrosanct / less vulnerable focus market fundamentals. Hence, we initiate coverage with a ‘BUY’ recommendation.

NextSource Materials - Initiation

NextSource is uniquely positioned to build a leading vertically integrated position, ex China, in the supply of Lithium-ion battery anode material which is essential for the Energy Transition. The company is commissioning phase 1 of its world-class Molo graphite mine in Madagascar and is in the final permitting process for its first Battery Anode Facility (BAF) to be located in Mauritius. The company is backed by Vision Blue, established by Sir Mick Davis, former CEO of Xstrata. On our calculat

Falcon Oil & Gas - Funding a Multi TCF Resource

Falcon has raised gross proceeds of US$8.9m via a placing and subscription at a price of 6p/share and the granting of overriding royalty interests. The net proceeds, together with Falcon’s existing cash resources (cUS$4.3m) will be used to fund Falcon’s net share of 2024 capex (cUS$9m) associated with the 40MMscf/d Shenandoah South Pilot Project, including the drilling, stimulation, and flow testing of two 10,000ft horizontal wells. The funds will also enable Falcon to fund its share of the cost

Initiation of Coverage - Critical raw materials for Europe’s green transition

Beowulf is advancing a portfolio of projects in Europe focussed on metals and minerals that are critical to enabling the continent’s transition to a greener economy. Awareness of Europe’s over-reliance on external supply sources for such vital raw materials is driving growing political support for ‘home-grown’ projects. Beowulf is strategically positioned to leverage this fast-evolving trend – its Kallak project in Sweden holds potential to deliver high-quality iron ore to lower the carbon-inten

Morning Note – 22 April 2024

Trifast (TRI LN) - Trading conditions remain difficult but self-help initiatives coming through

Despite end market demand remaining difficult in several regions Trifast has announced that revenue and profitability will be marginally ahead of the guidance provided at the end of January. Self-help initiatives instigated during 2023 are starting to come through providing visibility on the majority of the £3.0m savings identified to come through in the current financial year (Mar FY25). Zeus estimates were in line with guidance of £230m revenue, £11.5m EBIT and £6.0m PBT. We leave forecasts un

Morning Note – 24 April 2024

i3 Energy - 2024 Guidance: Consolidation for Growth

i3 Energy announced that its 2024 guidance consists of expectations to drill 10.5 net wells (7.6 net wells in Central Alberta, 1.9 net wells in Simonette and 1.0 net wells in the Clearwater play) with 85% of capex allocated to the second half of the year. Total capex expenditure for the year is guided at $US 50.9m. The company indicated that it intends to commence pad drilling of its Montney acreage in Q1 2025 and we perceive the company is bulking up for that significant growth opportunity for

Morning Note – 25 April 2024

Sintana Energy Inc. (TSX-V: SEI): Constrained test rate of 14 mboe/d at Mopane-1X. 10+ bn boe in place confirmed.

• Multiple tests over multiple zones in multiple horizons were run at the Mopane-1X exploration well. The flows achieved during the well test reached the maximum allowed limits of 14 mboe/d. The flow rate was constrained by the size of the available surface facilities. • The AVO-1 horizon encountered at Mopane-1X and Mopane-2X are in the same pressure regime, suggesting that the entire area (8 km diameter) between the two wells is connected. Overall, in the Mopane complex alone, and before dril

Touchstone Exploration+ (TXP, House Stock at 44p) - Closing of expanded bank facilities

Beowulf Mining (BEM LN) – Initiation Note – BUY – Supporting Scandinavia's Green Transition

Beowulf is an AIM/Spotlight-listed developer of two flagship assets; Kallak, a high-grade iron ore project in Sweden and the Grafintec Graphite Anode Materials Plant. The Company's Kallak North project has the potential to produce 2.5mtpa of high-grade, premium iron ore concentrate suitable for the growing green steel industry in Sweden. Additionally, Grafintec's Anode Material Plant Project is well positioned to serve the growing EV battery supply chain in Europe, whilst supporting EU plans

Jubilee Metals - Operational Update Q3 FY2024

Jubilee today reports its Q3 and third quarter operational results from its expanding operations in Zambia (copper) and South Africa (chrome and PGM). South Africa is on a growth trajectory with record chrome production of 409kt in the quarter (Q2 FY2024 381kt) and a monthly record in March of 145kt and production YTD of 1.13Mt (0.94Mt). Jubilee is well underway to its annual target capacity of 2,1Mt/yr especially with the new 300kt/yr chrome plant at Thutse expected to be operational in August

LIBERUM: Ferrexpo: Production triples

SP Angel Morning View: Gold prices slide following profit taking as traders look to US data

I3 Energy (I3E LN) - 2024 work programme and budget

I3 has released its work programme and budget for 2024, alongside providing guidance for the year. This represents a larger programme than 2023, with the focus now shifting to greater operational activity and production gains given the additional balance sheet strength achieved in recent months.