Anglo Asian Mining* (AAZ LN) – FY20 production guidance revised to 68-72koz GEO | Bezant Resources (BZT LN) – Drilling intersects copper mineralisation at the Gorob-Vendome project, Namibia | Bushveld Minerals* (BMN LN) – New orders from Invinity indicate rising demand for VRFB Grid storage systems | Keras Resources* (KRS LN) – Nayéga Project Update Togo | Kingston Resources (KSN AU) – Misima PFS | Panthera Resources (PAT LN) – Review of historical data from Beredo | Vast Resources* (VAST LN) – Shareholders approve the acquisition of the minority stake in Baita Plai |Versarien* (VRS LN) – MOD DSTL awards £1.95 for product development
Companies: AAZ BZT BMN KRS KSN PAT VAST VRS
Anglo Asian Mining* (AAZ LN) – FY20 production guidance revised to 68-72koz GEO | Bezant Resources (BZT LN) – Drilling intersects copper mineralisation at the Gorob-Vendome project, Namibia | Bushveld Minerals* (BMN LN) – New orders from Invinity indicate rising demand for VRFB Grid storage systems | Keras Resources* (KRS LN) – Nayéga Project Update Togo | Kingston Resources (KSN AU) – Misima PFS | Panthera Resources (PAT LN) – Review of historical data from Beredo | Vast Resources* (VAST LN) – Shareholders approve the acquisition of the minority stake in Baita Plai | Versarien* (VRS LN) – MOD DSTL awards £1.95 for product development
Companies: AAZ BZT BMN KRS PAT
AEX Gold Inc (AEXG LN) – Development progress | Amur Minerals* (AMC LN) – Loading of first iron ore for shipment at the Roper Bar Project | Anglo Asian Mining (AAZ LN) - BUY, 200p – Updated resources and reserves extend life of mine at Gedabek | Arkle Resources* (ARK LN) – Identification of additional gold targets in Donegal | Beowulf Mining* (BEM LN) – Drone survey completed at Mitrovica | Castillo Copper (CCZ LN) – Copper soil anomalies extended at Mkushi | KEFI Gold and Copper (KEFI LN) – Q4 drilling launched at Hawiah with first hole extending Camp Lode mineralisation from 300m to 440m down dip | Savannah Resources* (SAV LN) – Completion of Oman divestment | Yamana Gold (AUY LN) – C$152m acquisition of Wasamac project in Quebec
Companies: AEXG AMC AAZ ARK BEM CCZ KEFI SAVE AUY
Anglo Asian Mining* (AAZ LN) - BUY – 200p – Vejnaly Contract Area under control of Azerbaijan | Amur Minerals* (AMC LN) – NRR shareholders invest $10m in equity | Bluejay Mining* (JAY LN) – Extension to offtake negotiations for Dundas titanium mineral sands | Condor Gold* (CNR LN) – Detailed geotechnical investigations underway at La India | Directa Plus (DCTA LN) – Directa Plus agrees to supply graphene nanoplatelets to NexTech | Empire Metals* (EEE LN) – Deal offers stake in new Mexican gold mine and cash flow while retaining interest in Georgian assets | IronRidge Resources* (IRR LN) – Final Phase-two drilling results at Zaranou Gold Project | Adriatic Metals* (ADT1) – $28m financing to progress Vareš Silver Project | Kodal Minerals* (KOD LN) – Drawdown of financing | Pure Gold Mining (PUR LN) – Drilling results from Red Lake | Sunrise Resources (SRES LN) – Progress reports on Nevada projects | Vast Resources* (VAST LN) – Mining license extended at Manaila and Carlibaba
Companies: AAZ AMC JAY JAY CNR DCTA EEE IRR ADT1 KOD PUR SRES VAST
AEX Gold Inc (AEXG LN) – Gold mineralised structure extends to depth at Nalunaq in Greenland | Alba Mineral Resources (ALBA LN) – Progress at Clogau not affected by Covid-19 | Anglo Asian Mining* (AAZ LN) - BUY –Earnings update Antofagasta (ANTO LN) – Q3 report highlights 4.6% output drop | Atalaya Mining (ATYM LN) – Acquisition of 66mt VMS deposit 28km from Proyecto Riotinto | Centamin (CEY LN) – Quarterly production update and revised FY20/21 guidance | Petra Diamonds (PDL LN) – Tender process announced for collection of five blue diamonds | Premier African Minerals* (PREM LN) – £1.1m placing SolGold* (SOLG LN) – Strengthening the board
Companies: AEXG ALBA AAZ ATYM CEY PDL PREM SOLG
Anglo Asian Mining is an AIM listed precious and base metals producer running flagship Gedabek operations in western Azerbaijan which include open pit and underground mining facilities and a processing complex fit for different types of ores. Production runs at ~70-80kozpa GEO (~90% gold) with low operating costs status allowing the Company to generate FCF for organic growth opportunities within the highly prospective +1,000km2 land package and potential value accretive transactions over targets outside Azerbaijan as well as offer a generous dividend yield.
Companies: Anglo Asian Mining PLC
Amur Minerals* (AMC LN) – Director Change | Anglo Asian Mining* (AAZ LN) - BUY – TP under review – Q3 delivers 18.2koz GEO with FY20 guidance under review | Anglo American (AAL LN) – De Beers reports continuing signs of recovering diamond sales demand | Resolute Mining (RSG LN) – Underground resource update at Tabakoroni | Savannah Resources* (SAV LN) – Appointment of advisor for Mutamba development | SolGold* (SOLG LN) – First hole completed at Porvenir as exploration effort accelerates with additional rigs | Talga Resources (TLG LN) – Silicone Anode interest drives 10 times increase in commercial production capacity
Companies: AMC AAZ AAL SAV SOLG
Adriatic Metals* (ADT1 LN) – Annual results and review of exploration | AfriTin (ATM LN) –– H1 report highlights production ramp-up at the Uis mine | Ariana Resources* (AAU LN) – US$30m partial disposal of Turkish Assets | Anglo Asian Mining* (AAZ LN) – BUY – Gedabek continue unaffected by the Nagorno-Karabakh conflict | Cornish Lithium (Private) - Cornish Lithium looking to bring the EV supply chain closer to home | IronRidge Resources* (IRR LN) – FY20 results: well positioned to continue de-risking portfolio projects with A$7.3m in the bank | Kavango Resources (KAV LN) – Resuming field exploration of the Kalahari Copper Belt, Botswana | Power Metal Resources (POW LN) – Exploration gets underway on Botswana joint-venture | Rambler Metals and Mining* (RMM LN) – Interims and refinancing of debt and planned restoration of mine production at higher copper grade | Renascor Resources (RNU AU) – Offtake agreement with Chinese anode manufacturer highlights China’s dominance of supply chain | Trans-Siberian Gold (TSG LN) – 8c interim dividend declared reflecting robust FCF and strong outlook | Versarien* (VRS LN) – New Advisory Panel brings together global leaders in graphene within Versarien
Companies: ADT1 ATM AAU AAZ IRR KAV POW RMM RNU TSG VRS
Anglo Asian Mining (AAZ LN) – BUY – Dividend up ~30% on robust FCF with a potential for a special dividend in Q1/21 on expected strong H2/20 | Base Resources* (BSE LN) – Director change | Bluejay Mining* (JAY LN) – Ilmenite prices rise further as demand for feedstock lifts already tight market | European Metal Holdings (EMH LN) – German engineering firm appointed for Cinovec | Hummingbird Resources (HUM LN) – Dugbe funding update Panther Metals (PALM LN) – New exploration targets identified at Big Bear gold project | Vast Resources* (VAST LN) – Chiadzwa Community Diamond Concession update
Companies: AAZ JAY EMH HUM PALM VAST
Companies: AMC AAZ BEM BZT KOD POG PREM ATYM CDV
Altus Strategies* (ALS LN) – High grade gold mineralisation intersected at Tabakorole | Anglo Asian Mining* (AAZ LN) BUY Target 209p – H1 exploration update | Chaarat Gold* (CGH LN) BUY Target raised to 58p (from 51p) – Earnings update | Glencore (GLEN LN) – Record marketing performance shores up H1 results despite Covid19 pressures | Jubilee Metals Group (JLP LN) – Additional copper tailings in Zambia | Kavango Resources (KSZ LN) – Petrology report confirms further similarities between the Kahalari Sutre Zone and the Norilsk nickel system in Russia | Vast Resources* (VAST LN) – Drilling at Baita Plai returns high grade results
Companies: ALS AAZ CGH GLEN JLP KAV VAST
Anglo Asian Mining* (AAZ LN) – BUY, Target 209p – JV with Conroy Gold and Natural Resources | BHP (BHP LN) – FY2020 sees record iron-ore production while exploration focusses on copper | Tietto Minerals (TIE AU) – Drilling probes deeper at Abujar
Companies: Anglo Asian Mining PLC (AAZ:LON)BHP Group Plc (BHP:LON)
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Parkmead’s portfolio has evolved to the point where it is now a full-cycle E&P company with a low-cost Dutch production base and a broad spectrum of high-quality UK growth opportunities, encompassing material development projects and an attractive range of risk/reward exploration. Recently, it has diversified into renewables, future proofing its equity story and opening up a new ‘investor-friendly’ avenue of growth. A core strength of this management team is its commercial acumen and portfolio-driven approach to optimising value. Parkmead has been in portfolio construction mode to date but is now well positioned to start crystallising its intrinsic value. We initiate with a risked-NAV based price target of 155p/sh. Investors would do well to get on-board with a management team that has a strong track record of delivering shareholder value.
Companies: Parkmead Group PLC
Edison Investment Research is terminating coverage on Diversified Gas & Oil (DGOC), Vermilion Energy (VET) and Circle Property (CRC). Please note you should no longer rely on any previous research or estimates for these companies. All forecasts should now be considered redundant.
Companies: Diversified Gas & Oil PLC
Panoro Energy (PEN NO)c; Target price of NOK23.00: Revisiting Gabon - BW Energy provided an update on Dussafu with FY20 production guidance expectation marginally below previous guidance (14.25 mbbl/d versus 15 16 mbbl/d) due to COVID-19 restrictions and OPEC+ quotas. This results in FY20 opex expected to be US$19/bbl which is slightly above the previous guidance of US$17-18/bbl. The drilling of DTM-7H, and the tie-in of DTM-6H and -7H, has been deferred to mid-2021 with first oil expected in 3Q21 and our estimate of the timing of the field production ramp-up has been delayed by one quarter. BWE continues to expect production from the Dussafu area to reach >30 mbbl/d in 2023 and ~40 mbbl/d in 2024. The Hibiscus development is expected to offer 15% IRR at
Companies: TGL TGA 88E FEC JSE LUPE LUNE LNDNF LYV NOG GB_NTRM NSTRY 3NO PANR P3K PTHRF PTAL TETY TETY AOI ENOG PEN SDX EGY
• In an Important development, PetroTal has signed a contract with an international oil trader for a pilot shipment to export 0.12 mmbbl into the Atlantic region using the Amazon river through Brazil. The shipment will be sold FOB Bretana, priced at the forward month Brent ICE price, and paid within two weeks of loading at Bretana. There are no subsequent oil price adjustments.
• At November 19, 2020, PetroTal had cash resources of US$9.8 mm, with accounts payable and accrued liabilities of ~US$39 mm, a reduction of ~US$11 mm from the end of 2Q20. The company has been paid US$5.5 mm for delivery of 0.192 mm bbl of oil to Petroperu in October. Production is constrained to ~5,000 bbl/d pending the reopening of the export pipeline.
• We understand that the pilot should start in December. This would not only provide ~US$5 mm in cash to PetroTal but also allow production to return to recent levels (11.5 mbbl/d), effectively unlocking the fundamental value of the asset.
Balance sheet considerations
The potential financial derivative liability has been reduced from US$22.5 mm at the end of June to US$17 mm at the end of September. Of the US$39 mm current payables 46% are not due before 2021 and we note that the company still holds US$13 mm in account receivables and US$4.7 mm in inventory.
Financials on “a back to normal” scenario with flat production
We are now assuming production remains constrained at 5 mbbl/d over 4Q20 with minimum capex with cashflow and receivables being used to repay the due payables over the period.
On production of just ~11.5 mbbl/d during 2021, we estimate operating cashflow of US$85 mm at US$48/bbl Brent. This would result in free cashflow of >US$40 mm assuming capex of US$20 mm to maintain production and US$20 mm to repay the remaining payables. This compares with a current market cap of just US$75 mm, suggesting FY21 free cashflow would represent over 50% of the current market cap in a no growth scenario assuming production can be exported.
Our target price of £0.45 per share represents 6x the current share price.
Companies: PetroTal Corp.
EQTEC has announced today that the Company and Scott Bros. Enterprises Limited have agreed to extend the exclusivity period of the Billingham MOU until 18 December 2020. The Billingham MOU has been subject to previous extensions, as announced on 23 October 2019, 23 June 2020 and 18 September 2020.
Companies: EQTEC PLC (KEU1:FRA)EQTEC PLC (EQT:LON)
Pantheon announced that is has contracted a rig to drill the Talitha well and that drilling operations are expected to commence in January 2021. The well will target four independent reservoirs, in three separate trapping sequences, which the company estimates has the potential to contain in the region of a billion barrels of recoverable oil, although ongoing work is required to formally delineate the full potential of the targets.
Companies: Pantheon Resources plc
The Prime Minister vowed last week to “restore Britain's position as the foremost naval power in Europe” and promised an extra £16.5bn in defence spending over the next four years. Mr Johnson expects this investment to “spur a renaissance of British shipbuilding across the UK”, and specifically mentioned five locations where this would occur, including Belfast and Appledore – the location of InfraStrata's shipyards. Other supportive policy initiatives emanating from the government include Mr Johnson's pledge in October that offshore wind will power every home in the country by 2030. We believe this demonstrable support from the highest level of government vindicates InfraStrata's strategy, and demonstrates the significant opportunities available to the company as it bids on numerous shipbuilding and fabrication contracts. We reaffirm our Buy rating.
Companies: InfraStrata plc
Salt Lake Potash's AGM update reported that the Lake Way project is now 74% complete. Construction of the process plant is on-schedule with practical completion and first SOP production planned for Q1/21. Drawdown of the Senior Facility Agreement funds and repayment of the Taurus bridge loan is expected soon.
Companies: Salt Lake Potash Limited
Jersey Oil & Gas announced today that is has entered into an agreement to acquire the entire share capital of CIECO V&C (UK) Limited, which is currently owned by two international entities headquartered in Japan. The acquisition secures an additional 12% working interest in Licence P2170 (Blocks 20/5b & 21/1d), which provides Jersey Oil & Gas with 100% of the licence. The licence contains the majority of the Verbier oil discovery in addition to three drill ready prospects: Verbier Deep, Wengen and Cortina. The acquired entity has approximately £15M of tax losses which will provide value to Jersey Oil & Gas. Consideration will consist of £150k in cash and contingent payments of i) £1.5M upon field development plan approval of Verbier within P2170 (as already discovered) by the OGA ii) £1.0M upon the 1st anniversary of attainment of first oil. The acquisition is conditional on OGA approval amongst other technicalities, which we do not anticipate will be problematic. The acquired entity will be free of debts.
Companies: Jersey Oil & Gas PLC
Oil rose to the highest in nearly three months with positive Covid-19 vaccine developments paving the way for a more sustained recovery in oil demand.
Futures rose 5% in New York this week for a third straight weekly gain as Pfizer Inc and BioNTech SE requested emergency authorisation of their Covid vaccine Friday. Moderna Inc also released positive interim results from a final-stage trial and said it is close to seeking emergency authorisation. Still, further gains were limited by broader market declines amid a dispute between the White House and the Federal Reserve over emergency lending programmes.
Even with vaccines on the horizon, a recovery in oil demand faces obstacles with governments under pressure to tighten restrictions and curb the spread of the virus. UK Prime Minister, Boris Johnson's officials are considering tougher pandemic rules placed on broader regions of England next month after a national lockdown is set to end and the country returns to its tiered system. Meanwhile, the shift toward working from home may have a lasting chill on gasoline demand, according to Federal Reserve Bank of Kansas City President Esther George.
The recent climb in headline prices has been accompanied by significant moves in timespreads, where traders bet on the price of oil in different months. The spread between West Texas Intermediate for December 2021 delivery and the following month moved to backwardation, while the closely watched gap between December 2021 and 2022 WTI contracts is close to also flipping.
West Texas Intermediate for December delivery, which expired Friday, rose 41 cents to settle at $42.15 a barrel.
The January contract rose 52 cents to end the session at $42.42 a barrel.
Brent for January settlement gained 76 cents to $44.96 a barrel. The contract rose 5.1% this week.
Pfizer and BioNTech's vaccine could be the first to be cleared for use, but first it must undergo a thorough vetting. The filing could enable its use by the middle to the end of December, the companies said in a statement. Yet, it could take at least three weeks for a US Food and Drug Administration decision.
Companies: FOG PVR 88E DGOC EME TRIN UOG
Acquisition of CIECO P2170 interest
Companies: JOG JYOGF TPC1
Savannah’s acquisition of a key strategic Nigerian gas asset with strong growth potential has been ignored by the market. Its significant exploration success in Niger has also gone unrewarded. Delivery of the strong free cash flow potential these assets offer will re-rate the shares, which are materially undervalued. Management’s tenacity in getting the Seven Energy acquisition across the line alongside the impressive early progress with the acquired assets should give investors confidence. We initiate with a Buy rating and risked-NAV based price target of 49p/sh.
Companies: Savannah Energy Plc
Trifast has reported FY21 interim results that highlight the tough operating conditions with material falls in revenue, and operating leverage driving sharp reductions in profitability. The c.£16m equity raise helped to cushion the financial impact and the ongoing recovery exiting the first half provides some optimism for the Group heading in to FY22. We reinstate our buy recommendation.
Companies: Trifast plc (TRI:LON)Trifast plc (25D:BER)
Today's news & views, plus announcements from KGF, MRO, UU, BAB, BRW, FUTR, GNS, HICL, LIO, AEXG, FUL, KWS
Companies: AEX GNS HICL
While a three-year plan would have been more than enough, the new CEO delivered a roadmap for the next ten years. The idea is to show how Tullow’s existing assets can generate sufficient cash for the next decade. Discipline is key, with deleveraging as top priority. Spending is on a tight budget ($2.7bn for the next ten years) with 90% of it going to develop the West African assets. The quest to regain investors’ trust continues.
Companies: Tullow Oil plc