On Track in Stronger Markets

Tharisa has released its Q2 and interim production report for FY2024. Generally the production numbers were flat for both PGMs and Chrome and slightly below our forecast. In the case of PGMs this was due to lower recoveries due to ore type and in Chrome the company executed a routine maintenance programme on the plant. The company has maintained guidance for the full year however so we expect a robust second half followed by low risk growth in output as we head into FY25. Meanwhile Chrome pric

SP Angel Morning View: Metals steady as focus turns to US for key inflation data and rate guidance

Q1 Operating Update – Record Chrome Production

Tharisa has released its Q1 production report for the first quarter of FY2024. The company has had a strong quarter, in what is usually a tougher quarter to perform in, due to the festive season and heavier rains. Tharisa produced record chrome of 462kt, 6% ahead of our forecast and up 12% q-o-q. PGM production is largely in line with our forecast at 35.7koz and up 16% q-o-q. Guidance has been re-iterated, and Karo is well on track to meet the revised timeline for first ore in mill in June 2

FY2023 Results – Riding out the Storm

Tharisa has released its full year results for the year ending 30th September. The company had already released operational data and close EPS guidance so these results were all about filling in the missing pieces. Revenue was in line, EBITDA of $136.8m was light by 8% and PBT likewise by 5% due to slightly higher unit costs. As expected, the year on year changes were poor as commodity prices fell in the face of rising inflation. The clear differential though is the net cash position as capex fo

Q4 FY2023 Production Report

Tharisa has released its production report for Q4 and financial year ended FY2023 as well as their cash and debt balance. Overall, there was a small miss vs our estimates in both PGM and Chrome production. However, the operational data showed the company is now recovering from some of the in-pit waste issues at the Tharisa mine. The Vulcan processing plant is also starting to deliver. The net cash position for the year was $127m as the company's capex programme has been slightly delayed but we

Q3 FY2023 Production Results

THA has released its Q3 Production report FY2023 today.

Half Year Financial Results

Tharisa has released its consolidated half year financial statements this morning. Overall, the figures are behind our forecasts due to higher-than-expected costs due to inflationary pressures. Nonetheless, the Company has done well to improve their net cash position from $80m to $113m) ahead of their expansion in Zimbabwe as well as proposing an interim dividend of US 3.0 cents/share. This leaves the shares trading on a dividend yield of 6.2% which should attract attention.

Q2 2023 Production Report

Tharisa has released its production report for Q2 FY23 today. Mining in the pit has continued to be impacted by unprecedented rainfall at the Tharisa mine reducing operational flexibility. As done in Q1, the company continued to mitigate the impact on production using their stockpiles to maintain feed to the plants. However, PGM production reduced by 20% QoQ primarily due to the lower PGM recoveries through the Voyager and Genesis Plants. Chrome concentrate production was up 6% and into a stron

Jubilee Metals - Operational Update Q3 FY2024

Jubilee today reports its Q3 and third quarter operational results from its expanding operations in Zambia (copper) and South Africa (chrome and PGM). South Africa is on a growth trajectory with record chrome production of 409kt in the quarter (Q2 FY2024 381kt) and a monthly record in March of 145kt and production YTD of 1.13Mt (0.94Mt). Jubilee is well underway to its annual target capacity of 2,1Mt/yr especially with the new 300kt/yr chrome plant at Thutse expected to be operational in August

Trinity Exploration and Production - Reserves Reduction but Solid Core Business

Trinity has announced a c28% reduction to its 2P reserves following a YE23 review. Despite the decrease in the Company’s 2P reserves, Trinity’s core business remains robust, with a reserves/production ratio of >12.5 years at YE23. Whilst there is significant potential for growth within the current portfolio, this will be difficult to unlock from the current balance sheet and we believe further financing will be required. We update our target price to 76p (from 202p), a c85% premium to the curren

Morning Note – 16 April 2024

I3 Energy (I3E LN) - Canada royalty assets sale

I3 has announced the sale of the majority of its royalty interests in Canada, for US$24.8m cash. This allows the company to fully repay amounts drawn on its debt facility and create a working capital surplus, giving I3 significant additional funding flexibility going forward

Valeura Energy (TSX: VLE): Three exploration wells deliver three discoveries

• The Nong Yao-13 exploration well in the new Nong Yao D area that was targeting multiple zones has encountered >30 feet of new oil play across several new shallow intervals which have not been produced elsewhere on the concession. These reservoirs are believed to be recurring across the Nong Yao D area. • The drilling result confirms that oil has successfully migrated into this area of the block (a factor that was seen to be a risk in the Nong Yao D area) and open the opportunity for further a

NextSource Materials - Initiation

NextSource is uniquely positioned to build a leading vertically integrated position, ex China, in the supply of Lithium-ion battery anode material which is essential for the Energy Transition. The company is commissioning phase 1 of its world-class Molo graphite mine in Madagascar and is in the final permitting process for its first Battery Anode Facility (BAF) to be located in Mauritius. The company is backed by Vision Blue, established by Sir Mick Davis, former CEO of Xstrata. On our calculat

Morning Note – 15 April 2024

DEC FY23 Results Update

DEC reported FY23 results which were in line with expectations and announced the acquisition of joint venture assets from Oaktree along with an updated capital allocation framework.

Oil & Gas - Cavendish sector note

Chariot, Energean, Touchstone Exploration, Longboat Energy, Hartshead Resources, BP, Helix Exploration, PetroTal, Pantheon Resources, Caspian Sunrise, Petrofac, DNO ASA, Valeura Energy, Aker BP, Var Energi Source: FactSet, weekly change 08/04/24-12/04/24 Oil rose as Israel braced for a possible attack from Iran, a development that would threaten major disruptions in a region that accounts for a third of the world’s crude output. An assault is expected to come as soon as the next 48 hours, which

Union Jack Oil (UJO LN) - Wressle update

Union Jack has released an update on its Wressle asset, reporting maturing production from Wressle-1, alongside progress for significant further development activities on the field going forward.

SP Angel . Morning View . Copper prices hold higher as China processing fees fall below $0/t amid low feedstock availability

PROGRESSIVE: Pharos Energy: Delivering on operations and balance sheet

Pharos Energy reported FY23 results on 27 March. Group net production of 6,508 boepd (FY22: 7,166 boepd) was in line with guidance, assisted by successful development drilling in Vietnam and exploration successes in Egypt. Pharos’s strong cash generation resulted in a stronger balance sheet, with net debt reduced to US$6.6m (from US$28.9m at the end of 2022) and cash balances totalling US$32.6m. This left the group free to return more cash to shareholders, including a 10% increase in dividends,

Union Jack Oil+ (UJO, House Stock at 23p) - Wressle update

Hunting (HTG LN) - Q1 2024 trading update

Hunting has released its Q1 trading statement, reporting a strong period for OCTG and Subsea, steady growth in Advanced Manufacturing, and a softening in Perforating Systems.

Union Jack Oil* (UJO LN) - Wressle update and dividend plans

Union Jack announced an operational update on its onshore UK Wressle field and confirmed plans to announce the payment of a cash dividend to shareholders along with the FY23 results in May. Wressle continues to deliver material revenues to the Company, generating positive cash flow and providing it with sufficient cash resources to fund shareholder returns and invest in new development projects.