Arkle Resources* (ARK LN) – Raising £250,000 to fund August drilling programme at Stonepark | Beowulf Resources* (BEM LN) – Testwork continues to show good results on graphite projects in Finland | Centamin (CEY LN) –2019 results confirm 2020 production and cost guidance intact | Cora Gold* (CORA LN) – FY19 results highlight progress at the flagship Sanankoro gold project | Oriole Resources (ORR LN) – £165,000 HMRC rebate | Vast Resources* (VAST LN) - £0.9m raised to accelerate Baita Plai drilling programme and metallurgical work
Companies: ARK BEM CEY CORA ORR VAST
Cora Gold* (CORA LN) 5.3p, Mkt Cap £10m – First drilling results from the Madina Foulbe Permit in Senegal | Nano One Materials (NNO CN) C$1.28, Mkt cap C$101m - $3m of new funding from British Columbia | Ncondezi Energy (NCCL LN) 4.35p, mkt cap £12.8m – Agreement with GridX
Companies: CORA NNO NCCL
Adriatic Metals* (ADT1 LN) – Latest drilling at Rupice confirms extension of mineralisation to south and down dip. | Bushveld Minerals* (MBN LN) –– Strong vanadium sales and weaker rand offset impact of South African lockdown in Q1 | Cora Gold* (CORA LN) – ESIA to be carried by Digby Wells | Pensana Metals (PM8 AU) – Pensana awarded additional exploration licence close to Longonjo | Phoenix Copper* (PXC LN) – Empire oxide resources increase | Rambler Metals* (RMM LN) – Q1 copper production stable as higher grade areas are developed
Companies: ADT1 bmn CORA PXC RMM
Arc Minerals* (ARC LN) – Royalty agreement signed with royalty agreement with Golden Square Equity Partners Limited | Bluejay Mining* (JAY LN) – Greenland waives mineral exploration license obligations for 2020 | Caledonia Mining* (CMCL LN) – Q1 production rises 19% | Central Asia Metals (CAML LN) – Maintaining 2020 production guidance for now | Cora Gold* (CORA LN) – Drilling suspended at Madina Foulbe on official COVID-19 related instructions | Eurasia Mining (EUA LN) SUSPENDED – Operations and corporate update | Kenmare Resources (KMR LN) – Draws on facilities to weather Coronavirus storm | Rambler Metals* (RMM LN) – Appointment of non-executive director | Renascor (RNU AU) - Work Continues on Siviour Graphite Project despite COVID-19 | Serabi Gold* (SRB LN) –– Amended payment schedule for Coringa acquisition
Companies: ARCM JAY CMCL CAML CORA EUA KMR RMM SRB
Anglo American (AAL LN) – De Beers diamond sales | Atalaya Mining (ATYM LN) –Operations suspended at Proyecto Riotinto | Caledonia Mining* (CMCL LN) – Seeking exemption from virus mitigation measures | Cora Gold* (CORA LN) 4.5p, Mkt Cap £5.9m – Commencement of drilling at Madina Foulbe, Senegal | Gemfields (GEM LN) – Suspension of operations | Pan African Resources (PAF LN) – Operations under lock-down | Rainbow Rare Earths (RBW LN) 1.5p, Mkt cap £5.7m – Doubling production to 20,000tpa for >20 years reiterated in interim statement
Companies: AAL ATYM CMCL CORA GEM PAF RBW
Beowulf Mining* (BEM LN) – Co-investment with Vadar in exploration in Kosovo | Centamin (CEY LN) – No Cases of Covid19 – supply chain still operating normally | Cora Gold* (CORA LN) – COVID-19 related update | Firestone Diamonds (FDI LN) – Suspension of operations at Liqhobong | SolGold* (SOLG LN) – Implementation of virus control measures | Tertiary Minerals* (TYM LN) – Managing Director moving on | Versarien (VRS LN) - Joint venture agreement signed with Young-Graphene Technology in China | Novacyt (NCYT.L): Agreements struck with Bruker and Yourgene | Polarean Imaging (POLX.L): Change of General Meeting Venue | Silence Therapeutics (SLN.L): Strategic collaboration with AstraZeneca (AZN.L)
Companies: BEM CEY CORA FDI SOLG TYM VRS NCYT POLX SLN
Bacanora Lithium (BCN LN) 15.5p, Mkt Cap £34.6m – Sonora State reports first case of Covid19 infection | Cora Gold* (CORA LN) 4.3p, Mkt Cap £5.6m – Sanankoro drilling results | Europa Metals Limited (EUZ LN) 0.015 pence, Mkt Cap £1.7m – Impact of Covid19 containment measures at Toral zinc, lead, silver project in Spain | Versarien PLC – 23.36p, Mkt Cap £36m – £6m subscription with US institutional investor | World Health Organisation (WHO) launches multinational COVID-19 trial (SP Angel Healthcare team) | Novacyt* (NCYT.L): FDA Emergency Use Authorization for COVID-19 test | Creo Medical Group (CREO.L): FDA clearance for Haemostasis Device
Companies: BCN CORA EUZ VRS NCYT CREO
Anglo American (AAL LN) – Green Hydrogen Consortium with BHP, Fortescue and Hatch | Arc Minerals (ARCM LN) –– Sale of CASA Mining asset for US$5m loan note plus royalty agreement worth up to $45m | Ariana Resources (AAU LN) – 2020 Production guidance | Bushveld Minerals* (BMN LN) – Appointment of Eskom trouble-shooter Ms Mokgatle as an Independent Non-Executive Director | Capital Drilling (CAPD LN) – After-tax profit rises 34% in 2019 | Cora Gold* (CORA LN) – £2.9m equity raise | Gem Diamonds (GEMD LN) – Letseng small diamond tender succumbs to anti-virus precautions | Highland Gold (HGM LN) – Capital projects update
Companies: AAL ARCM AAU bmn CAPD CORA GEMD HGM
Beowulf Mining* (BEM LN) – Year-end results | Cora Gold* (CORA LN) – Metallurgy testwork for production of concentrate to be processed at Yanfolila | Strategic Minerals* (SML LN) –Cobre rolls over magnetite access for 8th year
Companies: BEM CORA SML
Cora Gold* (CORA LN) – Sanankoro drilling extends mineralised envelope | Firestone Diamonds (FDI LN) – Q2 operations and proposed cancellation of AIM listing | Rainbow Rare Earths* (RBW LN) – US$1m loan from Pipestone Capital
Companies: CORA FDI RBW
Altus Strategies* (ALS LN) – First 15m shares in Canyon issued as per the Birsok bauxite project sale | Aura Energy* (AURA LN) – Issue of shares to advisors | Cora Gold* (CORA LN) – Sanankoro step out drilling returns high grade intersections
Companies: ALS AURA CORA
Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m. The Group's key producing assets, the Kagem emerald mine in Zambia (believed to be the world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the Faberge brand. Due Valentines Day 2020.
Companies: PHE AGL CORA GMR UFO OPG SMRT DNL PRES AFS
Aura Energy* (AURA LN) – Swedish compensation claim to be handled by Chancellor of Justice in Sweden | Cora Gold* (CORA LN) – Sanankoro scoping study delivers attractive economics | Scotgold Resources* (SGZ LN) – Exploration update | Shanta Gold (SHG LN) – Robust Q4 results conclude strong FY19 year | Phoenix Copper* (PXC LN) – Ryan McDermott moves into CEO role as company heads towards production from Red Star project.
Companies: AURA CORA SGZ SHG PXC
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We currently have 82 research reports from 5
InfraStrata's acquisition of the iconic Harland & Wolff (H&W) shipyards in Northern Ireland has been transformational for the group, and with a carefully planned growth strategy, there is a clear route to cash breakeven in the short term. Over the medium to long term, these facilities could support a c£400m revenue business. With the company trading at a c30% discount to its H1/20A book value and c65% to its Adj NAV, we initiate with a Buy recommendation.
Anglo Asian Mining is an AIM listed precious and base metals producer running flagship Gedabek operations in western Azerbaijan which include three producing mines and processing facilities. The Company targets 75-80koz GEOs in 2020 with low cost operations providing capital for organic growth opportunities within the highly prospective +1,000km2 land package, with the potential for additional attractive targets outside Azerbaijan as well as 25% of FCF dividend programme.
Companies: Anglo Asian Mining
Falcon is uniquely placed in the current challenging commodity price environment with its strong cash position (US$11.5m at 31 March 2020), fully funded drilling programme and high quality assets. Following the farm down of a 7.5% participating interest to partner Origin Energy in return for an A$150.5m increase in the gross cap carry, we believe Falcon is fully funded through one of the greatest periods of uncertainty the oil and gas industry has ever faced. At a time when many in the industry fight for their very survival, we believe Falcon has managed to secure a fantastic deal for shareholders, which should see the Company through to the potential monetisation of its 22.5% participating interest. We maintain our price target at 40p, a 426% premium to the current share price and reiterate our BUY recommendation.
Companies: Falcon Oil & Gas
President is again demonstrating its ability to adapt rapidly to extreme macro conditions to maintain the balance sheet and keep its asset portfolio intact. A further US$6m subscription from Trafigura alongside a US$4.1m debt for equity swap will reduce debt to ~US$15m. Working capital will also be boosted by up to US$3.1m from the equity placing plus £2.2m from the retail offering. These not only materially improve the balance sheet but also bring President into strategic alignment with a strong industry partner. This, together with the benefit of Argentine fixed oil prices, leaves it primed to pursue a dynamic growth plan.
Companies: President Energy
The El Salmiya-5 well has come in significantly ahead of pre-drill expectations, encountering 120m of net pay, and testing 8,700boepd from the primary Kharita target formation. When coupled with the ASH-2 well which is still producing over 3,000boepd, net production levels from Abu Sennan are likely to rise to over 2,500boepd in the coming weeks. We model 2020 net production averaging c2,100boepd, generating a gross profit after royalties and opex of cUS$5.8m and EBITDA of cUS$3.6m. We increase our price target from 6.5p to 7.3p, a 152% premium to the current share price and reiterate our BUY recommendation.
Companies: United Oil & Gas
Sylvania's share price has fallen 53% since its peaked on the 21st Feb, as the global economy hit the brakes. The short term demand outlook for PGMs is miserable, with supply chains breaking down as both luxury goods and car sales sales collapse.
Companies: Sylvania Platinum
Savannah Energy is an AIM-listed E&P company with two sets of assets: (i) in-production gas and oil fields and a regional monopoly gas distributon network in South East Nigeria (well away from the risky Delta area); and (ii) licenses over 50% of a prolific oil basin in Niger.
Companies: Savannah Energy
April 2020 production payment
Companies: Gulf Keystone Petroleum
2019 was a significant year for United Oil & Gas, dominated by the acquisition of Rockhopper Egypt and its 22% working interest in the Abu Sennan concession. The acquisition has transformed United into a full-cycle E&P with c1,760boepd of production. With low operating costs (cUS$6.5/bbl) and drilling costs, Abu Sennan remains cash flow positive with oil prices below US$20/bbl. Additional downside protection comes from the Company's pre-payment facility with BP, effectively hedging 6,600bbls per month at US$60/bbl until September 2022 and its long-term fixed gas contracts, insulating 20% of United's production from the current price volatility. We update our model, accounting for slightly higher operating costs, setting our price target at 6.5p a 242% premium to the current share price and reiterate our BUY recommendation.
In this note, we analyze the indebtedness of 35 international E&Ps publicly listed in the UK, Canada, Norway, Sweden and the USA. For each company, we look at (1) cash position, (2) level and nature of debt (including covenants), (3) debt service and principal repayment framework and (4) Brent price required from April to YE20 to meet all the obligations and keep cash positions intact. We also estimate YE20 cash if Brent were to average US$20/bbl from April to YE20. While the oil demand and oil price collapse are of unprecedented historical proportions and the opportunities to cut costs much more limited than in 2014, most companies (with a few exceptions) entered the crisis in much better position than six years ago, with stronger balance sheets and often already extended debt maturities. In addition, this time around, many E&Ps have already been deleveraging for 1-2 years and are not caught in the middle of large developments that cannot be halted. The previous crisis also showed that debt providers could relax debt covenants for a certain period as long as interest and principal repayment obligations were met. This implies that as long as operations are not interrupted and counterparties keep paying their bills (Kurdistan), the storm can be weathered by most for a few quarters.
With (1) Brent price of about US$50/bbl in 1Q20, (2) reduced capex programmes, (3) material hedging programmes covering a large proportion of FY20 production at higher prices and (4) limited principal repayments in 2020, we find that most companies can meet all their costs and obligations in 2020 at Brent prices below US$40/bbl and often below US$35/bbl) from April until YE20 and keep their cash intact, allowing them to remain solvent at much lower prices for some time. In particular, Maha Energy and SDX Energy are cash neutral at about US$20/bbl. When factoring the divestment of Uganda, Tullow needs only US$9/bbl to maintain its YE20 cash equal to YE19. Canacol Energy, Diversified Gas and Oil, Independent Oil & Gas, Orca Exploration, Serica Energy and Wentworth Resources are gas stories not really exposed to oil prices and Africa Oil has hedged 95% of its FY20 production at over US$65/bbl.
Companies: AKERBP AOI CNE CNE DGOC EGY ENOG ENQ GENL GKP GPRK GTE HUR IOG JSE KOS LUPE MAHAA OKEA ORC.B PEN PHAR PMO PTAL PXT RRE SDX SEPL TETY TGL TLW TXP WRL
An independent resource audit by Gaffney, Cline & Associates (GCA) has significantly increased the resources at the Mako gas field following the JV's highly successful drilling campaign in Q4/19. GCA have increased the 2C gross recoverable dry gas volumes when compared to its previous resource assessment (in January 2019) by 79% to 495Bcf, slightly ahead of the internal 493Bcf assessment. In the upside case, the 3C resources have increased by 108% to 817Bcf, significantly higher than the 3C internal resource estimate of 666Bcf. Following the GCA resource upgrade, the Mako field has been proven to be one of the largest gas fields ever discovered in the West Natuna Basin and is believed to be the largest undeveloped resource in the region. Located close to existing infrastructure and well established markets, we believe Mako is an attractive proposition, which we currently value at US$18.3m or 3.2p using a US$6/mcf long term gas price.
Companies: Empyrean Energy
Petropavlovsk PLC (LSE: POG) have released their FY2019 results and Q1 trading update this morning. The company had already released production numbers for last year. Overall the numbers reflected a strong operational performance although various financial/other parameters thwarted positive changes below the EBITDA line. Conversely net cash from operations reduced by 43% due to lower cash from prepayment as part of the group’s forward sale facility with the banks, yet net debt came down to $561m. . We show the key figures in Table 1.
An independent resource audit by Gaffney, Cline & Associates (GCA) has significantly increased the resources at the Mako gas field following the JV's highly successful drilling campaign in Q4/19. GCA have increased the 2C gross recoverable dry gas volumes when compared to its previous resource assessment (in January 2019) by 79% to 495Bcf, slightly ahead of the internal 493Bcf assessment. In the upside case, the 3C resources have increased by 108% to 817Bcf, significantly higher than the 3C internal resource estimate of 666Bcf. Following the GCA resource upgrade, the Mako field has been proven to be one of the largest gas fields ever discovered in the West Natuna Basin and is believed to be the largest undeveloped resource in the region. Located close to existing infrastructure and well established markets, we believe Mako is an attractive proposition, which we conservatively value at US$18.3m (risked) or 3.2p using a US$6/mcf long term gas price, unrisked our valuation of Mako increases to US$25.2m or 4.3p per share. We value Empyrean as a whole at 19.0p per share a 280% premium to the share price and reiterate our BUY recommendation.
Valuation – We have updated our Mako model, with gas first in 2023 (previously 2022). Using a long term gas price of US$6/mcf, and a 10% discount factor we value the 42.1Bcf of net 2C resources at US$18.3m (risked) or 3.2p per share. We include a 30% risking to account for any potential commercial risks (including political and fiscal changes), cost risks (associated with potential development cost variations) and timing risks (to allow for any project delays). Unrisked our valuation increases to US$24.7m or 4.3p per share.
A key sensitivity to our valuation is the gas price, at US$8/mcf our valuation of Mako increases to US$31.0m or 5.3p per share (risked), US$44.3m or 7.6p per share (unrisked) and at US$10/mcf our valuation increases to US$40.8m or 7.0p per share (risked), US$58.4m or 10p per share (unrisked).
Combined, we value Empyrean's portfolio at 19p per share, a 280% premium to the share price.
Oil posted its biggest monthly advance on record, just a few weeks after prices made a dramatic plunge below zero. Crude surged about 88% in May, with US futures on Friday rising above $35 a barrel for the first time since March, driven by massive supply curbs by producers across the world. Still, prices are well below levels at the start of the year, and demand that was crushed by the coronavirus crisis may need to show a sustained improvement for the rally to extend further.
For now, the outlook for consumption looks bleak, though it is on the mend. While virus-related lockdowns are easing, demand is not yet roaring back in the US Fuel sales that were clobbered in European nations such as Spain and Italy will take time to recover. China is a bright spot, but the rest of Asia is still struggling.
The number of rigs drilling for oil in the US fell for the eleventh week, stemming the massive glut of crude that flooded the market. Yet there is a risk that oil's advance could tempt producers to turn on their taps again.
US crude futures fluctuated Friday, as Federal Reserve Chairman Jerome Powell defended aggressive action to shield the economy as the coronavirus pandemic took hold. Prices surged at the close, with West Texas Intermediate oil settling 5.3% higher at $35.49 a barrel, after falling as much as 4% earlier in the day. Futures posted the biggest monthly jump in data going back to 1983.
Brent crude for July, which expires Friday, rose 4 cents to $35.33, closing below WTI for the first time since 2016. The global benchmark has rallied almost 40% this month. The more active August contract rose 5% to settle at $37.84.
Meanwhile, US President Donald Trump is poised to sign a measure that would punish Chinese officials for imprisoning more than one million Muslims in internment camps, as he looks to rebuke Beijing over its crackdown in Hong Kong and its response to the coronavirus. He has also discussed putting targeted sanctions and trade measures on China's financial sector.
More on the oil market:
As the fallout from crude's historic plunge continues, the Securities and Exchange Commission and the Commodity Futures Trading Commission have both opened probes into the $4.64 billion United States Oil Fund ETF.
As China's demand recovery outpaces the rest of Asia, falling fuel exports from the refining giant are providing a much-needed buffer for other processors in the region still grappling with lowered consumption and poor margins.
An early look at Saudi Arabia's crude exports for May shows that historic production cuts have done little to squelch the kingdom's flood of oil to China, which is just getting back on its feet from the coronavirus.
Companies: FOG PVR 88E DGOC EME TRIN UOG
Shearwater sells resilience and today's trading update shows us how resilient demand has been for its products and services. The Group has swung to EBITDA profitability and cash flow is well ahead of expectations. The macro themes of cyber security and remote working are supportive of robust demand levels going forward. We are maintaining our forecasts. Buy.
Companies: Shearwater Group