Metals Exploration: Final mezzanine debt repaid

Metals Exploration (“MTL”), which operates the Runruno gold mine in the Philippines, has announced that it has made the last payment under its mezzanine debt facility with US$2.6m outstanding under its long term facility. We view this as a material positive for MTL, taking the total of principal and interest repaid since 2020 to US$171.3m with the balance sheet now effectively de-geared driven by solid recent operational delivery. The main near term catalysts for the shares should be hitting 202

SP Angel Morning View: Lithium auctions detach from spot prices in sign market is strengthening

Hybridan Small Cap Feast - 18 Mar 24

18th March 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment object

Metals Exploration: Q4 production a solid beat, 2024 guidance above expectation

Metals Exploration (“MTL”) has released Q4 production of 17.6koz (H&Pe 13.5koz) from the company’s Runruno mine in the Philippines. This takes production for the year to 85.1koz compared to guidance of 78koz-81koz (H&Pe 81koz). AISC for 2023 was US$1,126/oz compared to guidance of US$1,120/oz - US$1,200/oz (H&Pe US$1,150/oz). Guidance for 2024 is for production of 74koz-80koz at an AISC of US$1,175/oz-US$1,275/oz compared to our previous expectation of 71koz at an AISC of US$953/oz. Net debt at

Metals Exploration: Early stage exploration acquisition

Metals Exploration (“MTL”) has announced that it has entered into an agreement to acquire a controlling interest in the ‘YMC Group’ that holds exploration tenements in the Abra area of northern Luzon in the Philippines that are prospective for gold and copper. The acquisition cost is US$1.6m in cash and options to subscribe for 41m new shares in the company. We view this as a positive for MTL as, based on the current reserve, the company’s Runruno mine should be depleted in 2027. These early sta

Hybridan Small Cap Feast - 12 Jan 24

12th January 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje

Metals Exploration: Solid Q3 as de-gearing continues

Metals Exploration (“MTL”) has released a Q3 update from its Runruno mine in the Philippines, with production of 22koz beating our forecast of 16.7koz. This was principally driven by processing higher grade material and the company is well positioned to meet, and with scope to exceed, guidance for the year of 78koz-81koz. Revenue for the Quarter was US$42.4m with gold sales of 22.7koz. This resulted in US$19m of FCF with net debt falling to US$30.6m at the period end. Negotiations around the ele

Metals Exploration: Interims solidify record half year results

Metals Exploration (“MTL”) has released its interim financial results following the record first half of operations that saw >US$30m of operating profit and a net debt reduction of US$44.1m. MTL beat their guidance with first half production of 46koz, 64% of the top of the previous full year guidance, with full year guidance being increased to 78koz-81koz of gold. The strong performance of Runruno came despite the fleet needing to be deployed to develop the residual storage impoundment for part

Metals Exploration: Good quarter driven by grade, guidance hiked

Metals Exploration (MTL) has reported a solid set of Q2 production results from the company’s Runruno mine in the Philippines. Gold production was 24.7koz, above our expectation of 24.2koz and Q1 output of 21.4koz. No lost time injuries were reported during the period. This drove gold sold in H1 to 46.2koz at an average realised gold price of US$1,939/oz. The main driver of improved performance during the quarter was grade: mined grade increased from 1.53g/t to 1.62g/t, with processed grade incr

SP Angel Morning View: China eyes mortgage support to bolster faltering property sector

Metals Exploration: Solid quarter expected at Runruno

We preview Metals Exploration’s (“MTL”) Q2 production results and interim financial results for H1 2023. Q1 gold output from the company’s Runruno mine in the Philippines was 21.4koz and we expect an increase in Q2 to 24.2koz. This is being driven by an improvement in grade from 1.3g/t to 1.6g/t and with recoveries remaining high at 94%. While the company reported a death at the operation in May, this does not appear to have been an industrial accident and should not have had a material impact o

Metals Exploration: Degearing progressing following a quarter of solid FCF

Metals Exploration (“MTL”) has released its FY22 results following its recent Q1’23 update. During Q1 gold output was 21.4koz from the company’s Runruno mine in the Philippines following on from 72koz in 2022 and 23.6koz in Q4’22. We believe that the company is well positioned to meet 2023 guidance of 68koz-72koz and we expect production of 70.3koz. We forecast AISC for the year to be US$1,250/oz compared to guidance of US$1,250/oz-US$1,350/oz. Revenues for 2022 were US$129.8m with Q1 2023 reven

Metals Exploration: Q3 update lays a solid foundation for Q4 inflection point

Metals Exploration (“MTL”) has released its Q3’22 update, with gold output of 15.7koz, exceeding H&Pe despite several previously flagged operational headwinds that are largely expected to clear into Q4. As a result, quarterly free cash flow came in at US$4.1m, allowing a US$3.5m senior debt repayment. Q4 is expected to be MTL’s best quarter result for the year, with full year guidance expect to be at or slightly below the lower range (~67koz). MTL expects to have fully repaid the outstanding US$

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

Falcon Oil & Gas - Funding a Multi TCF Resource

Falcon has raised gross proceeds of US$8.9m via a placing and subscription at a price of 6p/share and the granting of overriding royalty interests. The net proceeds, together with Falcon’s existing cash resources (cUS$4.3m) will be used to fund Falcon’s net share of 2024 capex (cUS$9m) associated with the 40MMscf/d Shenandoah South Pilot Project, including the drilling, stimulation, and flow testing of two 10,000ft horizontal wells. The funds will also enable Falcon to fund its share of the cost

Initiation of Coverage - Critical raw materials for Europe’s green transition

Beowulf is advancing a portfolio of projects in Europe focussed on metals and minerals that are critical to enabling the continent’s transition to a greener economy. Awareness of Europe’s over-reliance on external supply sources for such vital raw materials is driving growing political support for ‘home-grown’ projects. Beowulf is strategically positioned to leverage this fast-evolving trend – its Kallak project in Sweden holds potential to deliver high-quality iron ore to lower the carbon-inten

Morning Note – 22 April 2024

Trifast (TRI LN) - Trading conditions remain difficult but self-help initiatives coming through

Despite end market demand remaining difficult in several regions Trifast has announced that revenue and profitability will be marginally ahead of the guidance provided at the end of January. Self-help initiatives instigated during 2023 are starting to come through providing visibility on the majority of the £3.0m savings identified to come through in the current financial year (Mar FY25). Zeus estimates were in line with guidance of £230m revenue, £11.5m EBIT and £6.0m PBT. We leave forecasts un

Morning Note – 24 April 2024

i3 Energy - 2024 Guidance: Consolidation for Growth

i3 Energy announced that its 2024 guidance consists of expectations to drill 10.5 net wells (7.6 net wells in Central Alberta, 1.9 net wells in Simonette and 1.0 net wells in the Clearwater play) with 85% of capex allocated to the second half of the year. Total capex expenditure for the year is guided at $US 50.9m. The company indicated that it intends to commence pad drilling of its Montney acreage in Q1 2025 and we perceive the company is bulking up for that significant growth opportunity for

Morning Note – 25 April 2024

Sintana Energy Inc. (TSX-V: SEI): Constrained test rate of 14 mboe/d at Mopane-1X. 10+ bn boe in place confirmed.

• Multiple tests over multiple zones in multiple horizons were run at the Mopane-1X exploration well. The flows achieved during the well test reached the maximum allowed limits of 14 mboe/d. The flow rate was constrained by the size of the available surface facilities. • The AVO-1 horizon encountered at Mopane-1X and Mopane-2X are in the same pressure regime, suggesting that the entire area (8 km diameter) between the two wells is connected. Overall, in the Mopane complex alone, and before dril

Touchstone Exploration+ (TXP, House Stock at 44p) - Closing of expanded bank facilities

Beowulf Mining (BEM LN) – Initiation Note – BUY – Supporting Scandinavia's Green Transition

Beowulf is an AIM/Spotlight-listed developer of two flagship assets; Kallak, a high-grade iron ore project in Sweden and the Grafintec Graphite Anode Materials Plant. The Company's Kallak North project has the potential to produce 2.5mtpa of high-grade, premium iron ore concentrate suitable for the growing green steel industry in Sweden. Additionally, Grafintec's Anode Material Plant Project is well positioned to serve the growing EV battery supply chain in Europe, whilst supporting EU plans

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

LIBERUM: Ferrexpo: Production triples

SP Angel Morning View: Gold prices slide following profit taking as traders look to US data

SP Angel Morning View: Copper prices hit $9,700/t as China smelts concentrates for zero charge Tc/Rc