Birimian Limited (BGS AU) Suspended – Stock suspended pending an announcement relating to internal reorganisation
Bluejay Mining* (JAY LN) BUY Target Price 22p – Renewal of Disko Exploration licenses in Greenland
BlueRock Diamonds* (BRD LN) – Plans to evaluate the Jubilee kimberlite pipe
DiamondCorp (DCP LN) Suspended – Bond holders and AMCU union blamed for DiamondCorp administration
Kodal Minerals* (KOD LN) – Kodal extends negotiating period by further 15 days following satisfactory due diligence with Suay Chin
Metminco* (MNC LN) – On course to deliver Miraflores Feasibility Study in Q3
Ortac Resources* (OTC LN) – Further investment in Casa Mining and £2m placement
Solgold* (SOLG LN) – Hole 24 extends known strike length to approximately 1300m
Companies: DCP KOD MNC SOLG OTC BRD
BlueJay Mining* (JAY LN – formerly FAM LN) 13.8p, Mkt Cap £86m – Maiden JORC resource update due on Pituffik titanium mineral sands project in Greenland | Bushveld Minerals* (BMN LN) 8.2p, Mkt Cap £60m – Bushveld satisfies conditions president for Vametco Acquisition | DiamondCorp (DCP LN) Suspended – Ineptocracy at AMCU leads to retrenchment of all employees and likely collapse of group | Metminco* (MNC LN) 5p, mkt cap £6m, – A$0.75m funding from Redfield Asset Management
Companies: BMN DCP MNC
Birimian Limited (BGS AU) – new mineralised zone at Goulamina, Bougouni lithium project in Mali | DiamondCorp (DCP LN) Suspended – Update on restructuring discussions with the IDC and AMCU | Medusa Mining (MML AU) – Infrastructure development causes interim sales to fall at Co-O mine in Philippines | Tethyan Resources (TETH LN) – Tethyan makes first milestone payment to secure Suva Ruda copper discovery | Strategic Minerals* (SML LN) – Cobalt mineralisation discovered at Hanns Camp in Australia
Companies: DCP MML TETH SML
Avesoro Resources (formerly Aureus Mining) (ASO LN) – Agreement of improved terms for finance facility | Berkeley Energia (BKY LN) – Quarterly update | Birimian Limited (BGS AU) – ‘Super Ninja’ moves to take control of Birimian for ‘massive’ potential | DiamondCorp (DCP LN) Suspended – placing amendment end date | FinnAust Mining* (FAM LN) BUY Target Price 15p – New appointments strengthen Pituffik project development team | Neo Lithium Corp (NLC CN) – $20m bought deal to advance Tres Quebradas lithium project in Catamarca, Argentina | Wolf Minerals (WLFE LN) – Quarterly Activity Report – moving forward with process plant improvements
Companies: BKY DCP JAY WLF ASO
Avesoro Resources (formerly Aureus Mining) (ASO LN) – 2017 guidance | DiamondCorp (DCP LN) Suspended – Hiccup in business rescue plan
Firestone Diamonds (FDI LN) – Liqhobong construction complete and first diamond sale expected in early February | Petropavlovsk (POG LN) Hold – Valuation under review – 2016 production and 2017 guidance | Rainbow Rare Earths Ltd – to be listed on the Standard List on Monday – Rainbow raises $8m for Gakara highgrade rare earths mine in Burundi | Stratex International (STI LN) – Exploration update on Goldstone’s Homase/Akrokerri project in Ghana
Companies: AUE DCP FDI POG ORR
Birimian Limited (BGS AU) – Birimian terminates $AUD 10.75m agreement with Shandong Mingrui Group for its Birimian lithium project | DiamondCorp (DCP LN) Suspended – DiamondCorp raises £1m | Edenville Energy (EDL LN) - Sinohydro partnership for Rukwa development | Kibo Mining (KIBO LN) – Integrated Bankable Feasibility Study for Mbeya Coal to Power Project | Petra Diamonds (PDL LN) - H1 Production results and trading update. | Serabi Gold (SRB LN) – Record 2016 gold production exceeds guidance
Companies: DCP KIBO PDL EDL SRB
Amur Minerals* (AMC LN) – Project update | BlueRock Diamonds* (BRD LN) – Crusher acquired from Kgalagadi Geoservices | DiamondCorp (DCP LN) Suspended – Diamond sale completed | North River Resources (NRRP LN) – Drilling results from Namib project
Companies: AMC DCP NRRP BRD
Ariana Resources (AAU LN) – Kiziltepe construction expected to complete in mid-December | ASA Resource Group* (ASA LN) – Bindura Nickel reports US$1.2m profit in half year to September | Bushveld Minerals (BMN LN) – Interims show progress toward Vanadium production acquisition | DiamondCorp (DCP LN) Suspended – 310m level now clear of flood water and longhole rig being moved for
refurbishment | Metals Exploration* (MTL LN) – First gold sale as Runruno mine ramps up amid debt rescheduling talks |Mariana Resources (MARL LN) – Drilling underway at Ergama in Turkey | Mkango Resources* (MKA LN) – Quarterly update | Sierra Rutile (SRX LN) – Takeover offer hangs in the balance as due diligence is dammed
Companies: AAU ASA BMN DCP MTL MARL MKA SRX
Amur Minerals* (AMC LN) – Agreement with the Far East Investment and Export Agency | Asiamet Resources (ARS LN) – Metallurgical test-work from BKM | DiamondCorp (DCP LN) Suspended – Business rescue practitioner appointed | Sierra Rutile (SRX LN) – Iluka merger cleared
Companies: AMC ARS DCP SRX
DiamondCorp (DCP LN) Suspended – Lace mine put into Business Administration in South Africa | European Metals (EMH LN) – Additional lithium – tin intercepts in recent drilling at Cinovec | Georgian Mining Corporation* (GEO LN) – Raises £2.6m (formerly Noricum Gold. | Savannah Resources (SAV LN) – Additional high grade copper intersections in Oman | Strategic Minerals* (SML LN) – Drilling tender for Redmoor with drilling expected in H1 2017
Companies: DCP SMC EMH GEO SAV
Amur Minerals* (AMC LN) – Access road update | Aureus Mining (AUE LN) – Q3 Operational update | DiamondCorp (DCP LN) Suspended – Lace Diamond mine closed as storm causes production level to flood | Caledonia Mining (CMCL LN) – Looking for a 20% increase in gold production in 2017. | Metals Exploration* (MTL LN) – Equity placement | Serabi Gold (SRB LN) – Record Q3 gold production and increased 2016 guidance | Strategic Minerals* (SML LN) – Exploration of Australian gold and nickel projects
Companies: AMC AUE DCP CAL MTL SMC SRB
DiamondCorp | Kefi Minerals | Premier African Minerals | Rio Tinto | Stellar Diamonds | Strategic Minerals
Companies: DCP PREM RIO STEL SMC KEFI
ASA Resource Group | DiamondCorp | Kodal Minerals
Companies: Asa Resource Group Diamondcorp
Avocet Mining | Bacanora Minerals | DiamondCorp | Strategic Minerals
Companies: AVM DCP SMC BCN
Caledonia Mining | DiamondCorp | Scotgold Resources
Companies: CAL DCP SGZ
Research Tree provides access to ongoing research coverage, media content and regulatory news on Diamondcorp.
We currently have 87 research reports from 4
Technical review and operational update
Companies: Hurricane Energy Plc
For this Monthly, we are delighted that Rooney Nimmo and 24Haymarket have allowed us to reproduce a recent report they jointly published, entitled An analysis of UK exits (2015-2019), which provides a granular analysis by sector of the activity in our dynamic private companies world. We hope you find the insights of interest.
Companies: AVO AGY ARBB ARIX CLIG ICGT NSF PCA PIN PXC PHP RECI SCE TRX SHED VTA
In the midst of another attempted takeover by stealth, Petropavlovsk PLC (LSE: POG) announced their trading results for H1 2020 which leaves them on track to deliver one of their best years ever, operationally and financially, with more to come in 2021. This is down to the perseverance, skillset and hard work of the workforce out in the Amur Region and their CEO Dr Pavel Maslovskiy, who has staked his reputation on the successful build out of the POX plant. Any corporate raider (and shareholder alike) should realise, whether it be Vekselberg or UGC, that without the support of Dr Maslovskiy you won’t win the hearts and minds of the workforce essential for the smooth running of the organisation. Meanwhile, the gold price has run through $1,900/oz; clearly a positive for this leveraged business. Incorporating this and the results into our modelling delivers a new Target Price of 50p and the set of financials shown in the right-hand column.
Companies: Petropavlovsk Plc
Companies: JSE HUR RDSA
Jubilee Metals successfully processes chrome tailings in South Africa to produce chrome concentrate and PGMS. It also owns the commissioned Sable copper refinery at Kabwe in Zambia and is looking to build a zinc-lead treatment plant at Kabwe next to the Sable refinery to process old tailings from the Kabwe mine. Today Jubilee announces that it has secured access rights to process 2Mt of Run-Of-Mine material grading in excess of 2% copper in Zambia with the potential to add a further 2.5Mt of tailings – Project “Roan”; an as yet an undisclosed project location in Zambia. This material will be upgraded at the “Roan” site with the concentrate shipped off to Jubilee's Sable Refinery to produce copper cathode. Initial target is set at 10kt contained copper/yr from Roan, and Jubilee hopes to begin production in 4 months' time with full production reached in 8 months – advanced preparations have been made, plans drawn up and discussion with equipment manufacturers already accomplished – Jubilee is ready to hit the ground running.
Companies: Jubilee Metals Group Plc
Centamin (CEY LN) – H2 profits rise 280% as company maintains 2020 production guidance | Chaarat Gold* (CGH LN) - BUY– H1/20 production in at 27koz with FY20 guidance reiterated at 55koz, Tulkubash
funding closure on course for YE20 | Edenville Energy* (EDL LN) – Rukwa coal operations restart | Pensana Rare Earths (PRE LN) – Final drilling results from Longonjo | Serabi Gold* (SRB LN) – Extension to drawdown period for the convertible loan | Versarien (VRS LN) - Launch of graphene enhanced protective face mask
Companies: CEY CGH EDL PRE SRB VRS
Hargreaves’ FY20 results are very solid indeed. As previously reported, the only noticeable impact from COVID was in the slippage of Blindwells’ land sales, which were due to conclude during the lockdown period. Site activity has resumed and sales remain on track to conclude in the current year. A final dividend of 4.5p has been declared and the outlook statement is measured but confident. We reintroduce forecasts today, effectively reinstating our pre-COVID expectations. Hargreaves is well positioned to deliver a period of significant, renewed growth with the prospect of a double digit dividend yield from FY22 as HRMS profits are distributed.
Companies: Hargreaves Services Plc
United has announced that it has successfully negotiated an 18 month extension to its Walton Morant licence, offshore Jamaica, in what could be a pivotal moment for the Company. United will assume a 100% working interest, and will complete a work programme to further de-risk the high-graded Colibri prospect ahead of a drill-or-drop decision in 2022. We view the award of the Walton Morant licence as a huge endorsement of the United team and its capabilities to operate a frontier, deepwater licence. We increase our risked valuation of the Colibri prospect to US$68.3m or 7.1p per share and our Company valuation to US$162.2m or 17p per share. Unrisked, our valuation of the Colibri prospect increases to US$752.7m or 78.7p, underlining its potential. We set our price target in line with our risked NAV at 17p, a 507% premium to the current share price, and reiterate our BUY recommendation.
Companies: United Oil
Civil works have started at Europa’s Wressle oil field, keeping the project on track for start-up in H2 2020 when it will more than double production and materially boost cash flow. This project is not only economically attractive, but it will also underpin Europa’s pursuit of additional exploration and development opportunities.
Companies: Europa Oil
The stock is up 6% at pixel time, which shows rather good prowess from management, as it also cut (for good) the dividend in half. As investors swallow the bitter pill, the low-carbon shift (and promises of higher valuations) make it easier to digest. Also helping was a decent cash generation in this quarter, thanks to BP’s trading unit.
Companies: BP Plc
Salt Lake Potash has received commitments to raise A$15m through the placement of unsecured zero-coupon Convertible Notes to Equatorial Resources (ASX:EQX) and institutional investors. The Convertible Notes have been structured as deferred equity with zero coupon and mandatory conversion into equity at the lower of 45c/share or a 5% discount to any future equity raising of at least A$10m. These funds will enable Salt Lake Potash to continue to develop Lake Way to the project schedule through July as they finalise debt financing. Plant practical completion and first SOP sales remain on schedule for the March 2021 quarter. The debt financing process in its final stages and with an agreement expected to be executed within weeks.
Companies: Salt Lake Potash Ltd.
Swedish Stirling is building momentum with the signing of a new agreement with Glencore for an additional 88 PWR BLOK waste gas to energy units. This deal is with South Africa’s largest ferro chrome smelter and shows that the company’s technology is gaining acceptance as a go to solution in the industry in South Africa. Swedish Stirling has benefited from its in-country team which has meant that COVID 19 restrictions has not prevented progress. The company now has a strong pipeline of deals which should drive sales in future years.
Companies: GLEN GLEN STRLNG
GeoPark (GRPK US)C; Target price US$20: Cash tax reduction and high impact drilling– The only item of interest in the 2Q20 financials was the fact that GeoPark did not pay any cash tax in 2Q20 (we were carrying a payment of US$40 mm). This explains why the cash balance at the end of June was so much higher than we expected at the time of the 2Q20 operating update in July). This also reflects important positive changes in Colombia. First, US$20-25 mm cash taxes in 2020 have been deferred to 2021 leaving only US$15-20 mm due in 2H20. In addition, Colombia is accelerating the reimbursement of income tax credits. GeoPark has already collected US$15 mm in July that will offset the remaining 2H20 cash tax. Overall in 2020, the company could potentially obtain a total refund of US$25 mm of income tax (out of which US$15 mm is firm and collected in July) plus US$15-20 mm of VAT. The key wells to focus on in 2H20 will be the 1-2 wells to be drilled at CPO-5 (GeoPark WI: 30%). While these wells are expected to increase production, they will also allow the company to start derisking the exploration upside associated with the block. The first well will be a development/appraisal well in Indico where the oil water contact has not been encountered yet. The second well is an exploration well at Aguila targeting the same play concept. The share price continues to trade at ~45% discount to our Core NAV of ~US$19 per share. Overall there could be 350-700 mmboe gross prospective resources across its Llanos blocks (including CPO-5). Our target price of US$20 per share reflects our ReNAV and attributes only ~US$1 per share to exploration. It represents over 100% upside to the current levels.
IN OTHER NEWS
Frontera Energy (FEC CN): 2Q20 results | Gran Tierra (GTE LN/US/CN): 2Q20 results | i3 Energy (I3E LN): Acquisition of Canadian assets and £30 mm funding | Maha Energy (MAHA-A SS): Production update in Brazil | Parex Resources (PXT CN): 2Q20 results
Pharos Energy (PHAR LN): Licence extension in Vietnam and RBL confirmation
bp (BP LN): 2Q20 results and change of strategy | Hurricane Energy (HUR LN): Technical update in the UK | Neptune Energy: Discovery in Norway | Spirit Energy: Dry hole in Norway
MIDDLE EAST AND NORTH AFRICA
Genel Energy (GENL LN): 1H20 results
Kosmos Energy (KOS US/LN): 2Q20 results | San Leon Energy (SLE LN): Acquires 10% Interest In new Nigerian oil export system | Vaalco Energy (EGY LN/US): 2Q20 results
EVENTS TO WATCH NEXT WEEK
10/08/2020: Diversified Gas & Oil (DGOC LN) – 2Q20 results
11/08/2020: JKX Oil & Gas (JKX LN) – 2Q20 results
13/08/2020: Africa oil (AOI CN/SS) – 2Q20 results
Companies: BP/ FEC GENL GPRK I3E PXT PHAR HUR KOS MAHAA EGY
HSP has announced positive results this morning, with a 30% increase in underlying EPS (continuing) for the year to May ‘20. Underlying PBT declined; however the prior year included land sales which did not recur in FY2020A. Stripping these out, profits were ahead YoY. Net debt rose marginally to £28.1m (prior year: £24.5m), largely on the back of accelerated mining activities (positive weather conditions) and delays to the sale of Blindwells, where the company had invested £8m; and is expected to remain steady during the coming year as the group continues to invest in Specialist Earthworks (with a switch to mainly leasing debt on HS2 plant funding). Having deferred the interim dividend on the back of Covid-19, the Board is now reinstating the dividend with a 4.5p payment in respect of the final DPS, reflecting the forward visibility it now feels it has. Given this forward visibility, we would also expect forecasts to be restored to the market in the near future, these having previously been withdrawn.
Rio delivered a decent set of H1 results, especially considering the COVID-19 disruption. Once more, Iron ore single-handedly came to the group’s rescue and (largely) compensated for varying issues in other divisions, thereby facilitating $2.5bn of dividends. While we don’t expect a magical near-term turnaround in the troubled divisions, iron ore’s sustained resilience should provide healthy comfort – also from a dividend perspective. Hence, Rio remains our preferred diversified mining bet.
Companies: Rio Tinto Plc