Avesoro Resources (ASO LN) – Youga reserve and resource update | Europa Metals Limited (EUZ LN) – Scoping Study underway on Toral zinc, lead, silver project in Spain Formerly Ferrum Crescent (FCR LN) | Ormonde Mining* (ORM LN) – 2017 results and progress report from Barruecopardo | Phoenix Global Mining* (PGM LN) – Empire Mine BFS drilling underway | Strategic Minerals* (SML LN) – Aircore drilling at Hanns Camp and Mt Weld identifies follow up targets
Companies: ASO FCR ORM SML PXC
Arc Minerals* (new ticker ARCM LN) – Casa Misisi (Akyanga) project | Anglo American (AAL LN) –De Beers diamond sales see restocking post the Christmas holiday season | Ferrum Crescent (FCR LN) – Maiden resource estimate for Toral project | Phoenix Global Mining* (PGM LN) – Initial cobalt exploration results | Wolf Minerals (WLFE LN) – Process plant improvements | Petropavlovsk (POG LN) – Q4 production update
Companies: OTC AAL FCR WLF POG PXC
Cradle Arc—holding company of a group of companies focused on the exploration and development of precious and base metals projects in Africa. Offer raising £2.4m with market cap of £20.13m. Expected late Jan 2018
Volex VLX.L—The global provider of cable assemblies is proposing to move from the main market to AIM on 19 January. £75m market cap. FYMar18E rev £241.5m and £7.19m PBT.
OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.
Companies: PEG PRIM LGT ESCH FFI GDP PXOG FCR 7DIG ARO
Altus Strategies* (ALS LN) BUY – Target price 12.2p – Agreement to acquire Legend Gold completed | Bacanora Minerals (BCN LN) – Founder’s family estate serves legal action against Bacanora Minerals | BHP Billiton (BLT LN) - Establishing process for Samarco claims | Bushveld Minerals (BMN) - BUY – Target price maintained at 11p – First vanadium Redox battery deployed at Eskom | Ferrum Crescent (FCR LN) – Director comes aboard AIM company at reasonable salary level | Patagonia Gold (PGD LN) - Raising £7.76m to proceed with Calcatreu option | Shanta Gold (SHG LN) Hold – Target 5.2p– Valuation update
Companies: ALS BHP BMN FCR SHG BCN PGD
Anglo American (AAL LN) – De Beers diamond sales reflect seasonal closures in India and Israel | Ferrum Crescent (FCR LN) – Myles Campion takes up executive director role | Petropavlovsk (POG LN) – Q3 production update | Rio Tinto (RIO LN) – Q3 production described as “strong” | Stratex International (STI LN) – Sale of stake in Goldstone Resources raises cash to continue funding costs relating to Crusader acquisition | Goldstone Resources (GRL LN) – breaks free as Stratex sells stake
Companies: AAL FCR POG RIO ORR GRL
GYG—Intention to float by the superyacht painting, supply and maintenance company. Due 5 July. Raising £6.9m new plus vendor sale of £21.5m at 100p. Mkt Cap c. £47m. Revenue of €54.6m in FY16 and adjusted EBITDA of €6.7m. | Greencoat Renewables - Schedule 1. Targeting a portfolio of operating renewable electricity generation assets, initially investing in wind generation assets in Ireland. Offer TBC. Due Mid July. | FFI Holdings— Specialist in the provision of completion contracts to the entertainment industry for films, television, miniseries and streaming product. Offer TBA. Expected 30 June. | QUIZ— Omni-channel fast fashion womenswear Company intention to float. Due July 2017. Offer TBA | Ethernity Networks—Schedule 1 from Israeli based specialist in data processing technology used in high end carrier ethernet applications across the telecom, mobile, security and data centre markets. Expected late June. Offer TBA. | Jangada Mines—Sch 1 advanced stage PGM exploration project containing what the Directors understand to be the largest PGM resource, and only pre-development PGM project, in South America. Offer TBA. Expected late June. | Phoenix Global Mining— US Brown field copper play. Expected late June. Offer TBA | Touchstone Exploration— Oil E&P company active in the Republic of Trinidad and Tobago. Interests of approximately 90k gross acres. Production c. 1.3k boepd. Raising £1.5m. Expected mkt cap £7.5m - 26 June. | I3 Energy –Schedule 1. Independent oil and gas company with assets and operations in the UK. Offer TBC, 7 June admission. | Verditek— Schedule 1 update. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission late June | Tiso Blackstar Group—Schedule 1 update. Media, entertainment and marketing solutions group/ £160m mkt cap. Admission only. Expected late June. | Rockpool Acquisitions—Northern Ireland based Company seeking strong NI acquisition with an international outlook. Raising £1.5m at 10p. Due 5 July. | Residential Secure Income - social housing REIT raising up to £300m Admission due c.12 July. | ScotGems—Admission due 26 June. Seeking £50-£100m. To investing in a diversified portfolio of Small Cap Companies listed on global stock markets | DP Eurasia—Intention to float from the exclusive master franchisee of the Domino's Pizza brand in Turkey, Russia,Azerbaijan and Georgia . £20m primary raise plus a partial vendor sale. | AIB—Intention to float from AIB, Ireland's leading retail and commercial bank. The Minister for Finance intends to sell approximately 25% of the Ordinary Shares of AIB. Valuation range €10.6-€13.3bn. Admission end June. | Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus. | NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June. | Kuwait Energy— $150m raise plus vendor offer. Admission due June. 2p reserves 810.0 mmboe. | Supermarket Income REIT– Up to £200m raise to acquire a diversified portfolio of supermarket real estate assets in
the UK, providing long-term RPI-linked income. Due 21 July.
Companies: ORCP WYN LEK HRN FCR EZH MERC WGB ECHO HALO
I3 Energy –Schedule 1. Independent oil and gas company with assets and operations in the UK. Offer TBC, 26 May admission.
Verditek— Schedule 1 update. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic,
filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission in late May.
Tiso Blackstar Group—Schedule 1 update. Media, entertainment and marketing solutions group/ £160m mkt cap. Admission only. Expected late June.
Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus.
NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock
Exchange listing with GDRs on the LSE. Expected mid June.
Flying Brands (FBDU.L)—Prospectus approved by FCA. RTO of Stone Checker Software, supplier of technology solutions in the field of kidney stone analysis and prevention. Has raised £550k at 3p. Subject to GM on 15 Jun.
AEW UK Long Lease REIT—Intention to Float. Up to £150m raise. Admission early June. UK specialist and alternative property
Alfa Financial Software –Intention to float. Mission-critical software platform purpose-built for asset finance enterprises. Vendor sale of 25% plus. FYDec16 rev £73.3m (CAGR of 24% from 2012). Adjusted EBIT £32.8m.
Kuwait Energy— $150m raise plus vendor offer. Admission due June. 2p reserves 810.0 mmboe
ADES International— Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa, seeking raise up to $170m plus vendor sale under a Standard Listing of the Main Market. Admission due May 2017.
PRS REIT—Private rental sector REIT raising up to £250m. Admission due 31 May
Companies: SAR ARIX AGQ OMIP FCR EMH LDSG YNGN GTLY OGN
Ferrum Crescent (FCR.L) |FitbugHoldings*(FITB.L) | Tristel (TSTL.L) | EmpyreanEnergy (EME.L) | StatPro Group (SOG.L) | Global Invacom Group (GINV.L) | Monitise (MONI.L) | Koovs (KOOV.L) | IronRidge Resources (IRR.L) | BOS Global (BOS.L)
Companies: FCR TSTL EME SOG RAD MONI KOOV IRR BOS BIDS
ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.9m. Target date 14 Dec. Expected market cap £15m, with issue price of 167p.
RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
Companies: PEG IOF ESR EMIS FCR ITM FXI LTG MPH HDD
Check out what's trending in the world of equity research this week...
Asiamet Resources | Coal of Africa | Ferrum Crescent | Metminco | North River Resources | Nyota Minerals
Companies: ARS CZA FCR MNC NRRP NYO
Ferrum Crescent | Gem Diamonds | Wolf Minerals | Sirius Minerals
Companies: FCR GEMD WLF SXX
Research Tree provides access to ongoing research coverage, media content and regulatory news on Ferrum Crescent.
We currently have 28 research reports from 3
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
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
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
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
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
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
Caspian Sunrise announced a capital raise of £1.0M at 2.75p to accelerate the repayment of its trade creditor positions. We note the company had previously announced its relatively tight working capital position following the switch to export status at the MJF structure in 2019, the impact of the measures taken to combat the Covid-19 virus and weakness in crude oil prices. The company indicated that the capital raised allows its trade creditor position to be brought into balance and that another capital raise is not expected in the current financial year and probably not all.
Companies: Caspian Sunrise Plc
Although acute market volatility translated into an H1 bonanza for trading, Glencore’s COVID-19 vulnerability came to the fore as industrial reported losses, and sizeable impairments were recognised. Moreover, the 2020 dividends were suspended to expedite deleveraging.
As market uncertainties are expected to persist, trading’s performance cushion should be maintained, and provide valuable time for industrial to revert to normalcy. Remember, as most commodity prices have recovered back to / beyond pre-COVID-19 levels, and production restrictions are easing, industrial should witness gradual improvements.
Companies: Glencore Plc
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
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.
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.