Market update - 04/05/2021
Companies: HE1 SDX TRIN UOG
Active 2021 drilling program gets underway in Morocco
Three wells are planned in the first phase of the 2021 Morocco drilling program, with up to 2 wells to follow in Morocco from September/October 2021.
Initial results expected July 2021
Drilling operations on the OYF-3 appraisal/development well started on 30 April, and an update will be provided once the initial program is completed (anticipated July 2021). The start of the program has been delayed by around one month owing to COVID-19 rel
Companies: SDX Energy PLC
Low cost onshore operator
SDX produces ~6mboe/d of gas and oil onshore Egypt and Morocco. Operations are low cost (opex US$5/boe, gross well costs in the ~US$1.5-3.5m range), an ideal environment in which to build an EandP business enabling active work programs whilst providing headroom during periods of commodity price weakness. SDX has a strong balance sheet resulting in a fully-funded 2021-22 work program when operating cash-flows are taken into account.
Fixed price gas reduces risk and inc
Edison Investment Research is terminating coverage on EJF Investments (EJFI), ROVI Laboratorios Farmaceuticos (ROVI) and SDX Energy (SDX). Please note you should no longer rely on any previous research or estimates for these companies. All forecasts should now be considered redundant.
Bahamas Petroleum Company (BPC LN)C; Target price of 1.90p: Perseverance well and balance sheet update – The overall final cost of the Perseverance #1 well in the Bahamas is expected to be ~US$45 mm, US$10 mm above initial budget. The higher cost reflects heightened Covid-19 procedures (~+US$3 mm) and side-tracking operations related to mechanical debris in the well (~+US$7 mm). We continue to estimate that cash will drop to US$6-7 mm when all the pending bills are paid. Thi
Companies: TXP BPC ENQ SDX SEN TETY TETY MAHAA LUPE 88E ALV VLE FEC
• SDX held US$10 mm in cash at YE20. While this had been reported previously, we note that the cash position is net of a US$4 mm reduction in payables compared to the end of September (while receivables were stable).
• FY20 production had already been reported and FY21 production guidance of 5,620-5,920 boe/d (net entitlement) with capex of US$25 26.5 mm has been reiterated. The FY21 guidance incorporates some maintenance at South Disouq and 1-2 wells to be taken offline for work-overs.
• The 2
Market update - 19/03/21
Bahamas Petroleum Company (BPC LN)C; Target price of 1.90p: Getting ready to start high impact drilling – The Saffron #2 well in Trinidad is expected to spud mid-May. The well is expected to add 200-300 bbl/d production and to derisk ~11 mmbbl recoverable resources. The well is expected to cost US$3 mm and generate US$1.8-2.6 mm cashflow per year. In a success case, BPC would drill 5-9 follow-on wells in 2021 to add 1.0-1.5 mbbl/d. In Suriname, drilling is expected to start
Companies: GENL HBR BPC CNE FEC JSE JOG SDX TLW
Market Update - 05/03/2021
Companies: Touchstone Exploration Inc (TXP:TSE)SDX Energy PLC (SDX:LON)
SDX Energy (SDX LN)C; Target price of £0.40: West Gharib contract extended by 10 years to 2031 – The increases SDX’s share of reserves in West Gharib (2.2 mmbbl at YE19), by 60%. The company plans to commence in 2Q21 a drilling programme of up to twelve wells over the next three years with the goal of growing gross production back to ~3,000bbl/d. The terms of the extension includes a commitment to drill six wells by YE22. In addition, up to six additional wells would have to
Companies: AOI FEC PXT SDX SEPL SNM TETY TETY TXP
Proposed move to AIM from the main market (standard) by Emmerson (EML.L) to provide Emmerson with access to a market and environment which is more suited, in the Board's view, to the Company's current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ong
Companies: XSG TXP SCE SNT KBT PXC OGN SDX TSG RBGP
Oil edged lower on Friday alongside a broader market decline as the recovery in consumption remains uncertain.
The dip capped a third straight week with New York futures stuck near $52 a barrel. US equities weakened amid lingering concerns
over volatile retail trading. While Johnson & Johnson's Covid-19 vaccine breakthrough allayed some worries about the deterioration
of consumption, it is clear the demand environment remains tepid. Chevron Corp posted a fourth-quarter loss after weak fuel
Companies: CVX EOG HES GTE 88E ADV DGOC GTC JOG NOG PANR RBD SAVE SDX TLW VOG LUNE
SDX Energy (SDX LN)C; Target Price: £0.40: Conservative and sensible FY21 guidance – FY21 production guidance has been set at 5,620-5,920 boe/d (net entitlement). While this is below the FY20 net production of 5,987 boe/d, we note that the FY20 net production (excluding Gemsa) was above the initial guidance of 5,650 5,950 boe/d (excluding Gemsa) which had been set in January 2020, pre-COVID. Adjusting for a normalized environment, this suggests that the FY20 production excee
Companies: ADX AKERBP DGOC GENL GTE JOG LUNE SAVE SDX SNM TGL EGY VOG
• FY21 production guidance has been set at 5,620-5,920 boe/d (net entitlement). While this is below the FY20 net production of 5,987 boe/d, we note that the FY20 net production (excluding Gemsa) was above the initial guidance of 5,650-5,950 boe/d (excluding Gemsa) which had been set in January 2020, pre-COVID. Adjusting for a normalized environment, this suggests that the FY20 production exceeded expectations by a significant margin.
• This might suggest that the FY21 production guidance is equa
Research Tree provides access to ongoing research coverage, media content and regulatory news on SDX Energy PLC.
We currently have 368 research reports from 12
Given the stellar performance of PGM prices, it is no surprise that Sylvania have achieved another record quarter with EBITDA of $58.7m and cash balance increasing 52% to $102.1m. Annualising this past quarter, the stock trades on a ridiculously cheap EV/EBITDA of 1.5x. Production of 17.4koz was inline with expectations and guidance of 70koz for the year remains in place. We remain very comfortable on rhodium on a five-year view (see here) and expect the abnormal cashflows to continue (30% FY22
Companies: Sylvania Platinum Ltd.
Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in spor
Companies: ADME RTC SAV DFCH HUW TEG ANIC KOO MIRI SPSY
Thor Mining (Thor) provides investors with exposure to a wide range of commodities in two safe jurisdictions (the USA and Australia). We see Thor's priority projects as its In-situ Recovery (ISR) projects in South Australia and its shovel-ready Molyhil tungsten project in Northern Territory. Short term, we expect news from exploration and drilling at its Ragged Range gold project in Western Australia and drilling in its uranium projects in Colorado – either of which could be transformational f
Companies: Thor Mining PLC
Following on from our previous report we wanted to explore the potential value of the Jade, Topaz and Pearl prospects in the event of success. We explore a potential three stage approach to the drilling of the three identified prospects within Block 29/11. Phase 1 involves success at Jade, which in the event of a commercial discovery would see our risked valuation of Jade increase from 9.7p to 41.2p. Phase 2 involves success at Topaz, which in the event of a commercial discovery would see our ri
Companies: Empyrean Energy PLC
Not much of note in Touchstone’s Q1 results, although the oil price recovery has spurred increased workover activity on its mature base oil business, stabilising production. Cash resources remain strong and Touchstone has significant remaining headroom on its credit facility, which alongside existing cash flows should cover this year’s work programme. Our risked-NAV and price target fall slightly, by 4% to 157p/sh, due primarily to lower net cash balances, but the impending Royston exploration w
Companies: Touchstone Exploration Inc
AUCTUS ON FRIDAY: EGY US/LN, PEN NO, PTAL LN/TAL CN, TETY SS, VLU LN/VLE CN, ALV CN, AOI CN/SS, CNE CN, CNE LN, CPI CN, ENQ LN, GKP LN, HRB LN, HUR LN, IGAS LN, KOS US/LN, NOR NO, OKE NO, SENX LN, TXP LN/CN
Vaalco Energy (EGY US/LN)C; Target price of £3.80 per share: Removing oil price risk in 2021 - 1Q21 cashflow was negatively impact by a ~US$12 working capital movement that should be reversed on the upcoming period given that the c
Companies: AOI ALV CNE CNE CNE ENQ HUR KOS PEN PEN TAL SEN TETY TETY TXP EGY VLE
Planned maintenance downtime at Vametco offset a solid performance at Vanchem as Q1 2021 vanadium production fell by 22% and 29% versus Q1 and Q4 of 2020, to 688t. Vametco is showing better stability post restart, but mindful of ongoing workstreams to maintain this, and of ramp-up risks attached to the Vanchem refurbishment, Bushveld now expects full-year production to come in towards the lower end of its 4,100-4,350t guidance range. We still envisage overall improved output this year, which in
Companies: Bushveld Minerals Limited
Oil posted a gain this week as expectations for growing economic activity in nations from the US to Europe fuelled optimism around stronger summer demand. Futures in New York advanced 2.1% this week in the first back-to-back weekly increase since early March. Fuel sales in the UK rose to the highest since the pandemic again, and in the US, refineries are running at their highest rate since the pandemic began as they gear up for the summer driving season.
Crude's advance this week comes amid s
Companies: FO 88E DEC EME GTC TRIN UOG
The UK market showed a continued recovery in the first quarter albeit the indices are still well short of their all-time peaks, unlike many of their international peers. The FTSE 100 has risen by 1,186 points (21.4%) since the end of October and the FTSE 250 by 4,304 points (25.0%). The comparable performance since the start of the year is less spectacular- the FTSE 100 has risen by 253 points (3.9%) and the FTSE 250 has risen by 1,070 points (5.0%). The factors behind the sustained rally are fa
Companies: AMYT ARBB BPC BAG BVC BEG BONH BLVN BRSD CML CWK CRPR EYE ECHO FDM FAR FA/ GPH GSF HUW INSE JDG KAPE KP2 MACF MPAC MNZS NESF NBI OTMP OBD PREM QFI RUA SCS SEN SOS SUR TON TOU TXP TGL TCN UEM VLS WYN
Bacanora Lithium (BCN LN) – Potential offer from Ganfeng
Lucara Diamonds (LUC CN) – Reports healthiest diamond market for 5 years
Pasofino Gold (VEIN CN) – C$9m equity raise
Power Metal Resources* (POW LN) – New corporate presentation
Rambler Metals and Mining* (RMM LN) – 2021 Q1 results and progress of recovery plan
Rio Tinto (RIO LN) – Battery-grade lithium produced at California plant
Companies: LUC VEIN BCN POW RMM RIO
• The 7D well has been put on production at 3,700 bbl/d during the first 10 days of production and has averaged 4,550 bbl/d during the past three days. The well took only 33 days to drill at a cost of US$8.6 mm (7% below the US$9.2 mm estimate).
• During the last three days, Bretana oil field production has averaged approximately 11,100 bbl/d. Two wells, representing 1,200 bbl/d, are currently shut in awaiting increased water injection pump enhancements, suggesting an overall well production ca
Companies: PetroTal Corp.
InfraStrata has conditionally raised £10.3m in a placing (with potential for up to a further £4.1m through an open offer) to support delivery of a transformational £26.5m fabrication contract with Saipem. This project validates management's vision for the company, and paves the way for future fabrication contracts. With the substantial pipeline of opportunities being targeted (c£1.7bn), alignment to structural growth drivers that are underpinned by government policy, and the credibility provided
Companies: InfraStrata plc
European Metals Holdings (EMH) yesterday provided a further update on its resource drilling programme at Cinovec; the nineteen hole drill program is to define blocks of resource for the first 5 years of mining within the Cinovec-South area and to convert the resource from Indicated to the Measured category. Seventeen holes have been completed with results reported by EMH to be in line, or better, than modelled. Of the six holes reported today, there were some intercepting significant tin miner
Companies: European Metals Holdings Limited
Canyon Resources (CAY AU) – Minim Martap bauxite project mineral resource upgrade (Altus Strategies is invested in Canyon Resources)
Marvel Gold (MVL AU) A$0.05, Mkt Cap A$27m – Chilalo Graphite Project spin out (Altus Strategies holds a JV agreement with Marvel Gold)
Metal Tiger (MTR LN) – Drilling Commenced at KML copper project
Serabi Gold* (SRB LN) – Drilling confirms lateral and depth extensions to mineralisation at Palito
Companies: ALS SRB MTR CAY MVL
Q1 2021 results
Companies: Serinus Energy plc