Amur Minerals* (AMC LN) – TEO update | Ariana Resources* (AAU LN) – Tavsan resource update | Chaarat Gold* (CGH LN) – Laying out production growth pipeline | Greatland Gold (GGP LN) – Latest drilling results extend Havieron mineralisation 220m northwest | Keras Resources* (KRS LN) – Directors buy 11m shares at 0.14p
Companies: AMC AAU CGH GGP KRS
Keras Resources (KRS LN) – Interim results highlight value created through Calidus shares | Pure Gold Mining (PUR LN) –– Resumption of drilling at Red Lake mine | Strategic Minerals* (SML LN) – Raising £1.1m to fund purchase of balance of Cornwall Resources
Companies: KRS PUR SML
Amur Minerals* (AMC LN) – EGM notice | Highland Gold (HGM LN) – Kayen exploration license sold for $15m and 2% royalty | Keras Resources* (KRS LN) - Global manganese ore output falls 22% in April | Mkango Resources* (MKA LN) – COVID-19 medical equipment donated to main Malawi hospital | Rambler Metals* (RMM LN) – US$1m bridging loan
Companies: AMC HGM KRS MKA RMM
Caledonia Mining (CMCL LN) – 2019 results and 2020 guidance | Keras Resources* (KRS LN) – AGM adjourned despite 99% of votes in favour of resolutions | Savannah Resources* (SAV LN) – Annual results highlight progress on Portuguese lithium and Mozambique mineral sands | Petropavlovsk (POG LN) – IRC stake divestment and loan guarantees termination proposal | Vast Resources* (VAST LN) – Baita Plai equipment shipments update | Regeneron advances COVID-19 antibody program | Synairgen (SNG.L): Approval to start Phase 2 trial of SNG001 in COVID-19
Companies: CMCL KRS POG SAV VAST SNG
Edenville Energy* (EDL LN) 0.6p, Mkt Cap £3.7m – Operations update | KEFI Minerals* (KEFI LN) – Hawiah Exploration Project Update | Keras Resources* (KRS LN) – Calidus gains value on higher gold price and falling Australian dollar following Keras distribution. | Phoenix Copper* (PXC LN) – Raises US$2m to advance Red Star | Rio Tinto may sell Pacific aluminium business as it cleans up its carbon act | Tri-Star Resources* (TSTR LN) – SPMP management changes
Companies: KEFI KRS RIO TSTR EDL
FRP Advisory Group, UK professional services firm specialising in restructuring advisory. Raising £80m (£20m primary). Expected market cap £190m. Compound annual growth of 16.4 per cent. in revenue and 10.9 per cent. in operating profit since the beginning of FY17.o Strong average EBITDA margins of 51 per cent. over FY17 to FY19, and consistently strong cash conversion Inspecs, a UK designer, manufacturer and distributor of eyewear frames to global retail chains announces its intention to IPO onto AIM raising £94m with a market cap of £138m. Admission expected 27th February. FY Dec 2018 numbers show revenue of $57m and underlying EBITDA of $11m. The Proof Of Trust has announced its intention to list on the Standard Market. The Blockchain based business, owns patents to a protocol which facilitates dispute resolution based upon smart contract disputes. Transaction details TBC. DRI Healthcare—investment company focused on investments in healthcare Royalty Assets looking to raise $350m. Due 11 Mar. Ninety One –proposed demerger and public listing of Investec’s global asset management business on LSE and JSE. 30 Sep 2019 AUM £121bn. Sale of existing shares. Expected free float of >60%. Due 16 march. Cabot Square—Closed ended investment fund focussed on alternative assets and asset manager. Looking to raise £200m. Will target investment opportunities that are expected to generate an attractive risk adjusted return and that can also make a positive ESG impact by focusing on some of the biggest challenges facing societies and economies. Due 14 Feb. The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m. Due 28 February. Incanthera—Specialist oncology company focused on transforming cancer treatment by creating environments in which cancer cannot survive . Due 28 Feb. Zapp Scooters, a developer and manufacturer of electric two-wheeled vehicles announced its intention to IPO on the NEX Exchange Growth Market. The Company intends to raise up to £3.5m. Admission is expected to occur on NEX in February 2020.
Companies: TSTL BOKU EQT KRS CALL CRV JAY TWD PHC ALBA
Adriatic Metals* (ADT LN) – Permitting update | Anglo American (AAL LN) – De Beers diamond sales | Atalaya Mining (ATYM LN) – Permitting update for Proyecto Touro | Altus Strategies* (ALS LN) 7.3p, Mkt Cap £16m – Start of drilling at Tabakorole Gold Project | Georgian Mining Corporation (GEO LN) – Georgian Mining receives confirmation of tenure from the Georgian National Agency of Mines | Keras Resources* (KRS LN) – Keras to place order for larger 25,000tpm plant at Nayega | Sovereign Metals (SOV AU) - Raising A$2m | Shanta Gold (SHG LN) – Higher resource at Singida to yield better project economics | Trans-Siberian Gold (TSG LN) – FY20 production guided at 38-42koz and dividend policy reiterated
Companies: ADT1 AAL ALS ATYM KRS SMA GEO SHG TSG
Sirius Minerals (SXX LN) / Anglo American (AAL LN) - Anglo American agrees to buy Sirius Minerals for 5.5/s (£404m) | Chaarat Gold* (CGH LN) 36p, Mkt Cap £169m – Issue of shares | Keras Resources* (KRS LN) – Keras hires local team for Q1 start of production
Companies: AAL SXX CGH KRS
AfriTin Mining* (ATM LN) –– Issue of £3.8m of convertible loan notes as Uis ramps up tin concentrate production | Altus Strategies* (ALS LN) – Q3/19 corporate and operational highlights | Asiamet Resources (ARS LN) – Near term exploration targets | Aura Energy Limited* (AURA LN) – Extraordinary General Meeting | Keras Resources* (KRS LN) – Distribution of Calidus Shares | Thor Mining (THR LN) – Drilling results from Kapunda
Companies: ATM ALS ARS AURA KRS THR
Beowulf Mining* (BEM LN) – Bewulf raises stake in Vadar in Kosovo | Keras Resources* (KRS LN) – Nayega Manganese project update | Thor Mining (THR LN) – Stream sediment results from W Australia
Companies: BEM KRS THR
Altus Strategies* (ALS LN) – Exploration update on Zager and Daro, Northern Ethiopia | Beowulf Mining* (BEM LN) – Near doubling of graphite resource at Aitolampi | KEFI Minerals* (KEFI LN) – Q3 operational update | Keras Resources* (KRS LN) – Keras to host London investor event with Calidus Resources | Petra Diamonds (PDL LN) – Pit wall at Cullinan mine
Companies: ALS BEM KEFI KRS PDL
Anglo American (AAL LN) – Production report shows company on track to deliver guidance | Aura Energy Limited* (AURA LN) – Call for shareholder meeting | Bushveld Minerals* (BMN LN) – Mining right granted for Mokopane vanadium, magnetite mine | Keras Resources* (KRS LN) –Infill drilling to grow the Warrawoona reserve
Companies: AAL AURA bmn KRS
Avesoro Resources (ASO LN) – Response to take-over offer | Barrick Gold – settles with Tanzania for $300m, a 16% free-carried interest in each of the Barrick-Acacia’s Tanzanian gold mines and a 50:50 profit sharing agreement | Shanta Gold – Tanzanian tax settlement may enable Revenue Authority to repay VAT owed to Shanta Gold | Bluejay Mining* (JAY LN) – Kangerluarsul zinc-lead-silver project | Chaarat Gold* (CGH LN) Target Price and Recommendation under review – Q3 operational update | Cora Gold* (CORA LN) – Final Sanankoro met test work results are in | Highland Gold (HGM LN) – Q3 update: on course for 290-300koz in FY19 | Keras Resources* (KRS LN) BUY, Valuation 1.08p – Mining permit granted by Council of Ministers of the Republic of Togo | Petra Diamonds (PDL LN) – Q1 Results and diamond market update | Phoenix Copper* - (PXC LN) – Empire mineralisation links through Red Star to White Knob showing porphyry potential
Companies: ASO ABX SHG JAY CGH CORA HGM KRS PDL
Arkle Resources* (ARK LN) 0.925p, Mkt Cap £1.2m – Interim results and project update | BlueRock Diamonds* (BRD LN) 141p, Mkt Cap £4.6m – Bluerock recovers 20.72ct diamond at kareevlei in South Africa | Edenville Energy* (EDL LN) 0.0525p, Mkt Cap £2.7m – Interim results and update | Keras Resources* (KRS LN) 0.45p, Mkt Cap £11.2m – Demerger of 724m Calidus shares, fundraising and loan conversion into stock | Premier African Minerals* (PREM LN) 0.023p, Mkt Cap £2.7m – £0.22m fund raising | Vast Resources* (VAST LN) 0.22p, Mkt Cap £21m – Vast to agree agreement between Katanga and ZCDC next week at Chiadzwa in the Marange diamond fields
Companies: ARK BRD EDL KRS PREM VAST
Altus Strategies* (ALS LN) – Sale and royalty agreement with Desert Gold on two projects in Mali | Anglo American (AAL LN) – De Beers diamond sales | Ariana Resources (AAU LN) – Kiziltepe quarterly results | Chaarat Gold (CGH LN) – Drilling continues to expand the Tulkubash orebody | Keras Resources* (KRS LN) – Fundraising of £350,000 and conversion of director loans | Premier African Minerals* (PREM LN) – Completion of loan to Otjozondu Manganese
Companies: ALS AAL AAU CGH KRS PREM
Research Tree provides access to ongoing research coverage, media content and regulatory news on Keras Resources.
We currently have 154 research reports from 4
Robust, cash-generative production from mining waste
Jubilee operates several chrome-Platinum Group Metal (PGM) operations in South Africa and is constructing a zinc-lead (vanadium) plant at Kabwe in Zambia after already commissioning the copper and cobalt circuits (the ‘Sable' refinery). The company has a growth pipeline identified and significant opportunities to find new projects in Africa (or globally); more specifically, Jubilee announced that it is looking to increase its copper (cobalt) production in Zambia aggressively to make full use of the Sable Refinery. Jubilee also owns the Tjate PGM project in South Africa, which is currently on hold. The company model is to treat its own waste materials and to supplement these with third party ores and wastes where possible. This year has been nothing if not eventful for Jubilee, but further progress and material catalysts are expected over the course of 2020. Jubilee has a high-margin business with cash on hand, and we see plenty of opportunities for Jubilee to capitalise on its robust business model through the global Covid-19 crisis and beyond. We initiate with a fair value of 11.2p/sh
Companies: Jubilee Platinum
Companies: Hurricane Energy
Central Asia Metals (CAML LN) announced robust Q2 2020 operating statistics which highlight that there were no COVID-19 related interruptions, in part due to stringent measures put in place by the company. Q2 2020 copper output of 3.4kt was down 6% YoY, up 6% QoQ, however, H1 2020 total production was flat at 6.6kt indicating the company is on track for our 13.4kt 2020F target. Q2 Lead and zinc production of 7.5kt and 6.1kt were up 3% and 5% YoY although both were down 1% QoQ respectively. For H1 2020 12.2kt of zinc and 15.1kt of lead were up 5% and 6% which was primarily due to higher throughput.
Companies: Central Asia Metals
A number of REITs have the ability to thrive in current market conditions and thereafter. Not only do they hold assets that will remain in strong demand, but they have focus and transparency. The leases and underlying rents are structured in a manner to provide long visibility, growth and security. Hardman & Co defined an investment universe of REITs that we considered provided security and “safer harbours”. We introduced this universe with our report published in March 2019: “Secure income” REITs – Safe Harbour Available. Here, we take forward the investment case and story. We point to six REITs, in particular, where we believe the risk/reward is the most attractive.
Companies: AGY ARBB ARIX BUR CMH CLIG DNL HAYD NSF PCA PIN PXC PHP RE/ RECI SCE SHED VTA
Caledonia's Q2 2020 production from its 64% owned Blanket mine in Zimbabwe was 13.5koz gold. This was an increase over the same period last year of 6.2%, leaving Caledonia with a first half production of 27.7koz – well ahead of this time last year (24.7koz) and on track to meet its 2020 full year guidance of 53-56koz (WHI etc. 55.5koz).
Spectra Systems Corporation is a provider of machine-readable high-speed banknote authentication, brand protection technologies and gaming security software. The company has announced that it has executed a new contract with a major world central bank to ‘enhance existing authentication sensors to detect a unique type of counterfeit notes'.
Companies: Spectra Systems Caledonia Mining Corporation Plc Com Shs Npv
Companies: Premier Oil
Jubilee today takes us through its H1 2020 numbers, which, importantly, cover the critical COVID-19 initial lockdown period in South Africa. The numbers continue to show growth and progress, with headline H1 2020 operational earnings up 54% to GBP 12.8 million – the sixth consecutive, six-monthly period of double-digit growth. The cash position increased to £10.8m despite settling the final payment of £1.4m for the acquisition of additional PGM and chrome rights as well as settling historical debt of £2.5m, all while commissioning the Zambian Sable Refinery.
Following the appointment two months ago of new CEO Rob Richards, VDTK's newsflow has been encouraging in recent weeks, and we view this morning's announcement as a further affirmation of the company's renewable energy solution. Today's RNS highlighting a contract to supply ultra lightweight, flexible solar panels to Black Tulip Minerals SA, of Peru, is, at over €200,000, the latest in a string of recent positive announcements, while also taking the company into a completely new sector which it had announced as a target area.
Image Scan is a specialist in the field of X-ray imaging for the security and industrial inspection markets. The company has announced, as part of its organic growth strategy, a new partnership agreement with a major security technology company that will lead to the launch of a new range of security X-ray screening systems for the international market. Competitively priced, and leveraging Image Scan's IP and direct and indirect international channel partners, the new system will be a high performance, competitive conveyor X-ray machine, suitable for security checkpoints in government and commercial buildings around the world. Importantly, these systems will also allow the company to increase its recurring service and support revenue.
Companies: IGE JLP VDTK
Stable platform agreement approved by creditors
U.S. futures and European stocks dropped on Friday as investors mulled a reported conflict among policy makers over a stimulus package for the single-currency region, as well as political upheaval in France.
The Stoxx 600 Index fell after Bloomberg News reported the European Central Bank is facing a potential rift over how much their emergency bond-purchase program should stay weighted toward weaker countries such as Italy. The euro fluctuated following French President Emmanuel Macron's decision to name a new prime minister after asking his government to resign. Rolls-Royce Holdings Plc slumped after the British jet-engine maker said its exploring options to raise funds to strengthen its balance sheet.
The dollar was slightly down, posting its first weekly drop in a month, while American cash equity and bond markets were shut for Independence Day. President Donald Trump will attend an early July 4 celebration at Mount Rushmore with thousands of guests who won't be required to wear masks, while his U.K. counterpart Boris Johnson urged Britons to act responsibly as pubs prepare to re-open and the government lifts quarantine rules on travel for 60 countries.
The friction at the ECB highlights the risk to markets should promised stimulus measures fall short. Investors continue to weigh policy support and upbeat economic data against relentless new outbreaks of the virus. U.S payrolls figures Thursday fuelled optimism of a V-shaped recovery in the world's biggest economy, even as Florida reported that infections and hospitalizations jumped the most yet, and Houston had a surge in intensive-care patients. Emerging-market stocks posted the biggest weekly gain in a month.
Elsewhere, crude oil dipped but remained on track for a weekly gain.
Companies: TGL JSE IAE ADME BP/ DGOC ENOG NTQ NTOG PMO RBD ROSE RDSA UKOG TRIN
InfraStrata has raised £9m in gross proceeds via a share placing (subject to the approval of shareholders), which will be used to provide growth capital to execute on the company's pipeline. The proceeds will also be used to repay high-cost short-term debt (leaving the group with a c£4.5m net cash position). Given the significant earnings potential of H&W, along with that of the group's other infrastructure assets as they mature, we consider the company to be significantly undervalued and reaffirm our Buy recommendation.
PetroTal (PTAL LN/TAL CN)C; Target price £0.45: 1Q20 results/Bretaña expected to restart in July – 1Q20 financials are in line with expectations and 1Q20 production had been reported previously. At the end of 1Q20, current trade and other payables had been reduced to ~US$45 mm compared to ~US$55 mm at YE19. Most importantly. PetroTal continues to expect the Bretaña field to be re-opened this month. The contingent liability with Petroperu is estimated at US$25 mm at the current oil price and the company has entered into a financial swap for 0.46 mmbbl of oil with an ICE Brent reference price of US $40.58/bbl to cover the upcoming sale by Petroperu at the Bayovar port. This is a recovery story that we continue to like. It offers a combination of value, production and cash flow growth and reserves upside. We anticipate that the imminent reopening of the field with be an important catalyst to the share price.
i3 Energy (I3E LN): Reveals takeover target in Canada | Maha Energy (MAHA-A SS): Production update | Aker BB (AKERBP NO): 2Q20 update in Norway | Energy (RRE LN): Recommended offer by Viaro Energy | Spirit Energy: Dry hole in Norway | Enwell Energy (ENW LN): Ukraine update | JKX Oil & Gas (JKX LN): 2Q20 update in Ukraine and Russia | Pharos Energy (PHAR LN): Operating update in Egypt and Vietnam | Sound Energy (SOU LN)C: Terms of Moroccan licence renegotiated | Tethys Oil (TETY SS): June production in Oman | Victoria Oil & Gas (VOG LN): Gas sales contract with ENEO in Cameroon terminated
EVENTS TO WATCH NEXT WEEK
14/07/2020: Aker BP (AKERBP NO) – 2Q20 results
15/07/2020: Premier Oil (PMO LN) – 1H20 update
13-17/07/2020: GeoPark (GPRK US) – 2Q20 update
Companies: I3E MAHAA JKX PHAR EQNR AKERBP ENI HUR PTAL REP RRE SOU TPL VOG OMV
• 1Q20 financials are in line with expectations and 1Q20 production had been reported previously.
• At the end of 1Q20, current trade and other payables had been reduced to ~US$45 mm compared to ~US$55 mm at YE19.
• Most importantly, PetroTal continues to expect the Bretaña field to be re-opened this month.
• The contingent liability with Petroperu is estimated at US$25 mm at the current oil price and the company has entered into a financial swap for 0.46 mmbbl of oil with an ICE Brent reference price of US $40.58/bbl to cover the upcoming sale by Petroperu at the Bayovar port.
Recovery, value and cashflow
PetroTal is a recovery story that we continue to like. It offers a combination of value, production and cash flow growth and reserves upside. PetroTal’s shares continue to trade at around one quarter of our Core NAV of £0.47 per share and at less than half of the company’s value based on its 2P reserves only (2P NAV of £0.28 per share). This reflects Brent price assumptions in line with what BP, Shell and ENI are using. This is important because the commodity prices assumptions of the Majors have often been more conservative than those used by smaller companies that could see PetroTal as an acquisition target. On flat production, PetroTal’s share price implies EV/DACF multiples of 1.0x in 2021 turning negative in 2022. In 2021, we forecast PetroTal generates ~US$90 mm cash flow with ~US$35 mm cash capex (incl. servicing the payables). Our target price of £0.45 per share (~our Core NAV) represents 4.5x the current share price.
Looking beyond the restart of the field
We anticipate that the imminent reopening of the field will be an important catalyst to the share price with 4Q20 production expected to be over 12 mbbl/d. This is however just a first step and there are multiple areas of additional value creation. (1) The story would strongly benefit from a further increase in oil prices. At US$50/bbl for Brent, the Petroperu US$25 mm contingent liability would be reduced to
Oil rebounded as a new virus treatment showed promising results, but rising Covid-19 cases continued to weigh on the market.
Oil gained 2.4% in New York on Friday but is still down for the week. The market followed stocks higher after Gilead Sciences Inc said its remdesivir treatment cut Covid-19 mortality risk by 62%. Still, the coronavirus pandemic is far from easing around the world and the International Energy Agency said a jump in cases could derail the market recovery.
Crude has struggled to extend a recent rally as traders weigh fresh outbreaks of the virus. California, Texas and Florida have recorded some of their biggest daily gains in cases and deaths this week. There is a growing risk that a resurgence will impede efforts to reopen the economy.
While the IEA said demand should rebound sharply over the next three months as economic activity resumes, the agency also warned a flare-up of the virus, which is raging across several US states and re-emerging in Asia, is “casting a shadow over the outlook”.
West Texas Intermediate for August delivery rose 93 cents to $40.55 a barrel in New York.
Brent for September settlement gained 89 cents to $43.24 a barrel.
Heavy Louisiana Sweet crude rose 30 cents to $2 a barrel above Nymex. That is the highest premium since May.
Supply could also become more abundant as Libya's National Oil Corp announced it would lift force majeure on all exports following months of near-zero shipments. The Kriti Bastion tanker has started loading 730,000 barrels of crude at Es Sider, with the cargo heading to Italy, according to port operator Waha Oil Co. Rigzone.
Companies: FOG PVR 88E DGOC EME TRIN UOG
AFC Energy to Charge Inaugural Extreme E Championship Race Vehicles
AFC Energy announced that it is collaborating with Extreme E to supply zero emission, hydrogen fuelled, off-grid power to Extreme E's inaugural electric SUV racing series commencing in early 2021. We believe the development is a high-profile endorsement of AFC Energy's technology. AFC Energy has not disclosed the amount of revenue they expect to generate through this one-year contract. We expect AFC Energy will benefit materially from the publicity associated with this global and high-profile Championship. We expect the shares will trade positively on this news.
Companies: AFC Energy
On 14 July Powerhouse’s shareholders approved the proposed acquisition of former development partner Waste2Tricity (W2T). This clears the way for Peel Environmental to lead the engagement with all potential end-customers in the UK seeking to deploy Powerhouse’s distributed modular generation (DMG) technology as well as developing DMG plants on its own sites. Peel is targeting the development of at least 30 DMG plants across the UK, each of which will potentially generate £0.5m in annual licence fees for Powerhouse.
Companies: Powerhouse Energy Group