Encouraging and detailed metallurgical testwork results were reported from their advanced 100% owned open pit Mina do Barroso spodumene hard rock lithium project in Portugal. This involved the development of a new flow sheet and testing of a variety of mineral types, including different weathered types of spodumene ore from the various drilled deposits that form the project.
Companies: SAV BHP GLEN ASO ALBA CAML GWMO
Arkle Resources* (ARK LN) 1.3p, Mkt Cap £1.7m – Airborne geophysics highlights additional opportunities at Stonepark | Avesoro Resources (ASO LN) 92.5p, Mkt Cap £75.5m – Operational challenges prompt further downgrade to production guidance | Chaarat Gold* (CGH LN) 34p, Mkt Cap £156m - $5.8m equity raise | Phoenix Copper* - (PXC LN) 15p, Mkt Cap £6.4m – £850,000 fundraising to advance the Red Star project. | Savannah Resources* (SAV LN) 2.4p, Mkt Cap £31.1m – Metallurgical results from Mina do Barroso lithium project
Companies: ARK ASO CGH SAV
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
Aura Energy Limited* (AURA LN) 0.525p, Mkt Cap £6.8m – Haggan resource upgrade | Avesoro Resources (ASO LN) 89p, Mkt Cap £72.6m – Lower Q3 gold output | Caledonia Mining (CMCL LN) 575p, Mkt Cap £61.8m – Oxygen plant at the Blanket mine | Cora Gold* (CORA LN) 7.4p, Mkt Cap £9.5m – Management changes | Thor Mining (THR LN) 0.5p, Mkt Cap £4.1m – Molyhil resource update
Companies: AURA ASO CMCL CORA THR
Anglo American (AAL LN) – De Beers diamond sales | Avesoro Resources (ASO LN) – Pit wall failure at New Liberty | IronRidge Resources* (IRR LN) – Positive geophysical results from Dorothe project, Chad | Kodal Minerals* (KOD LN) – ESIA addendum lodged with authorities
Companies: AAL ASO IRR KOD
Avesoro Resources (ASO LN) – Major shareholder provides additional working capital facility | BlueRock Diamonds* (BRD LN) – Interim results | Kavango Resources (KAV LN) – Earning up to 90% in two licences in the Kalahari Copper Belt | Kodal Minerals* (KOD LN) – Bougouni ESIA submitted
Companies: ASO BRD KAV KOD
Arc Minerals* (ARCM LN) – STRONG BUY – Drilling indicates copper over 300 x 650m at Cheyeza East | Asiamet Resources (ARS LN) – Raising US$2.1m for further work at BKM and Beutong | Avesoro Resources (ASO LN) – Major shareholder expresses interest in acquiring the balance of the company | Beowulf Mining* (BEM LN) – Interim statement highlights Kallak permitting process | BHP (BHP LN) – Declares record final dividend of 78UScents/share | Highland Gold (HGM LN) – Death of a Director | IronRidge Resources* (IRR LN) – Cape Coast lithium metallurgical test work | Keras Resources* (KRS LN) – BUY, Valuation 1.08p – Calidus drill campaign to add value on potential Warrawoona gold resource expansion | Kodal Minerals* (KOD LN) – Positive lithium metallurgical test work results | Power Metal Resources* (POW LN) – Strategic and operational review | Premier African Minerals* (PREM LN) – Power supply plan for RHA tungsten
Companies: ARCM ARS ASO BEM BHP HGM IRR IRR KRS KOD POW PREM
BTG (BTG) - BTG announced that they had reached agreem ent on the term s of a recom m ended cash offer by Bidco and have cancelled their listing on the Main Market (premium).
Companies: KRS TSG ASO VITA ANGS ODX BCN EDR TGP KOD
Acacia Mining (ACA LN) – Approval to resume gold shipments from North Mara | Avesoro Resources (ASO LN) – Youga operations suspended | Bluejay Mining* (JAY LN) – Bulk sample for Rio Tinto Iron & Titanium underway | Kodal Minerals* (KOD LN) – Seeking clarity on funds from SVS | Shanta Gold (SHG LN) – Interim results keep Shanta Gold on track to meet production and cost guidance | Thor Mining (THR LN) – Metallurgical drilling results from Molyhil
Companies: ACA ASO JAY KOD SHG THR
Anglo Asian Mining* (AAZ LN) – Robust production and strong margins driven net cash to $15.4m in Q2/19 | Avesoro Resources (ASO LN) – Youga mining contract expected to help close funding gap | Shanta Gold (SHG LN) – Resource update extends the life of mine to 2025 | Strategic Minerals* (SML LN) – Cobre sales and update | Tertiary Minerals* (TYM LN) – new zones of zinc/silver mineralisation identified at Paymaster
Companies: AAZ ASO SHG SML TYM
Avesoro Resources (ASO LN) – Q2 production reflects past disruption but mines getting back on track | Central Asia Metals (CAML LN) – H1 2019 operations on track to meet full year 2019 guidance | KEFI Minerals* (KEFI LN) – Q2 operational update | Koppar Resources (KRX AU) – Acquisition of disruptive Vulcan Lithium project | Petropavlovsk (POG LN) – Site visit notes
Companies: ASO CAML KEFI POG
Juniors/Mid-market News: o Ecuador court rules against community consultation for Cascabel project o Bushveld Brits vanadium maiden mineral resource o MC Mining agreement signed with Haohua energy international o Avesoro Younga NI43-101 filed o KEFI Minerals exploration update o Premier African Minerals US$350k loan note funding
Mining Regulatory News: o Zambian court rejects Vedanta bid to join liquidation case
Commodity News: o China iron ore soars as Rio Tinto cuts shipments forecast
Companies: SOLG BMN MCM ASO KEFI PREM
Majors Mining News: o Protesters agree to lift Newmont Goldcorp blockade in Mexico | Juniors/Mid-market News: o SolGold appointment of Directors o Trans-Siberian Gold senior management appointment o Hummingbird second ball mill ahead of schedule at Yanfolila o Avesoro operations restart at Youga o Eurasia Mining application for Tipil licence lodged o Altus Strategies expiry of term sheet with Indiana Resources o Mkango announces exercise of warrants | Mining Regulatory News: o AMCU seeks basic wage of R17 000 (US$1150) for members in platinum sector o No more daytime drinking for metals traders as LME bans alcohol | Commodity News: o Strike at Codelco's largest copper mine triggers new supply fears o Thousands evacuated after floods hit Indonesia's nickel region o Iron ore price at fresh 5-year high
Companies: SOLG TSG HUM ASO EUA MKA
Altus Strategies* (ALS LN) – Expiry of term sheets on Mali projects | Avesoro Resources (ASO LN) – Processing resumed at Youga | BlueRock Diamonds* (BRD LN) – BlueRock diamonds has sold its 24.98ct diamond for US$190,000 | European Metals Holdings (EMH LN) – Lithium hydroxide PFS confirmed | Hummingbird Resources (HUM LN) – Installation of Yanfolila’s second ball-mill running ahead of schedule | Vast Resources* (VAST LN) – Progress report on the Heritage Diamond concession
Companies: ASO EMH HUM VAST BRD
Alumasc Group plc, the prem ium building products, system s and solutions group, has announced its intention to m ove from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019
Argentex a UK-based forex service provider founded in 2011 by its current management team which operates as a Riskless Principal for nonspeculative and forward foreign exchange as structured financial derivatives is looking to join AIM. Offer TBC, expected 25 June
Companies: EQLS FOX RBD UJO TSG IGP ASO ANG EMH AMER
Research Tree provides access to ongoing research coverage, media content and regulatory news on Avesoro Resources.
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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
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
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)
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
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
• 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.
88 Energy has raised A$10m (before expenses) at a price of A$0.006 (0.33p) to fund the ongoing evaluation of the Company's portfolio and to enable it to identify and exploit new opportunities on the Alaskan North Slope. The net proceeds will fund 88E's share of any potential costs associated with the drilling of the Harrier and Merlin prospects at Project Peregrine, scheduled to commence in Q1/21. Harrier and Merlin are on trend and south of the ConocoPhillips Harpoon and Willow discoveries, and are estimated to contain >1bn boe of gross unrisked net prospective resources. Lying at a depth of 5,000ft, both prospects can be drilled at a gross cost of cUS$15m, providing shareholders with access to a huge potential resource at a relatively low cost. Following strong industry interest, a preferred bidder has been selected, with 88 Energy looking to conclude the farm-out of Project Peregrine in the next few weeks. Following yesterday's placing, we value the Merlin and Harrier prospects at 0.5p/share (risked) in aggregate, increasing to 8.0p/share unrisked. We update our target price to 2.3p (a 597% premium to the placing price and reiterate our BUY recommendation).
Companies: 88 Energy Limited
Central Asia Metals (CAML LN) following a successful ramp up at Sasa, progress in the environmental clean up and confirmation of the remedial costs in line with the previously guided US$1.5m the company has declared an interim dividend of 6p/sh. This will be paid on 11 December 2020 with a record date of 20 November 2020.
Companies: Central Asia Metals 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
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)
Hargreaves’ AGM statement confirms a positive start to FY21, building on the resilient FY20 performance. Trading is in line with expectations, the Industrial Services business has won a number of new contracts, and Hargreaves Land is said to be close to announcing the completion of its first plot sale at Blindwells. In our view, the shares are yet to reflect the earnings growth forecast for the next three years or the prospect of a 20p total dividend, which is expected to be paid first in FY22 as previously restricted HRMS profits are distributed. A further update on trading will be provided in early December, ahead of interims at the end of January.
Companies: Hargreaves Services plc
Jubilee today releases its audited annual accounts for the year ending June 30 2020. As expected, the results show the real progress made through the year. Production up, revenues up (132% to £54.8), Operating profit up (226% to £15.9m and EPS up (96% to 0.94/sh). We have seen solid progress on the expansion in the chrome and PGM projects in South Africa and consolidation of ownership of the projects against a background of Covid – which Jubilee successfully navigated. The year also saw robust plans for expansion in Zambia at the Sable Refinery in Kabwe. Security of supply has been achieved by three transactions which tie up dump resources all set to feed into the (to be) expanded Sable Refinery and making Jubilee a producer of scale in Zambia. We see fair value in Jubilee at 12p and present our first forecasts for the company (FY2021E).
Companies: Jubilee Metals Group PLC
Pan African Resources (PAF) has announced that it is to acquire 100% of Mogale Gold and Mintails SA Soweto Cluster from Mintails’ liquidator for ZAR50.0m (US$3.2m). Combined, the two assets host a mineral resource of 243Mt (in tailings), containing 2.36Moz gold. As such, consideration equates to US$1.31 per oz of contained gold cf an average valuation of US$9.88/oz for London-listed pre-production gold assets (see Gold stars and black holes, published in January 2019). Closure of the deal is subject to the usual due diligence, including the evaluation the assets’ amenability to retreatment.
Companies: Pan African Resources PLC
Union Jack’s latest drilling update of the West Newton B-1 well (WNB-1) outlines that the Kirkham Abbey formation is hydrocarbon bearing which supports pre-drill expectations and previous drilling results from the A-1 and A-2 wells. The secondary target (the Cadeby formation) was always deemed to be much higher risk and therefore we had not previously valued this interval, therefore today’s update has no impact on the material base case resource estimates at West Newton (146MMBbl oil, 211Bcf gas). The JV partners continue drilling activities with a side-track of WNB-1 to further appraise the Kirkham Abbey which we fully expect to yield positive results given significant de-risking achieved to date. As such, we retain our STRONG BUY stance and 0.82p/share TP.
Companies: Union Jack Oil Plc