Gemfields has had a tough 12 months, but has gotten through the worst of it with the balance sheet intact. The outlook for the recovery appears very encouraging, as the mines have restarted and the company has adapted its auctions so that the goods can be viewed by the majority of customers. A combination of restocking demand and the strength in the wider jewellery space should drive operating free cashflows of $50m in 2021/2022, rising to over $100m in 2023. Initiate with a 16p price target and
Companies: Gemfields Group Limited
As travel restrictions prevented customers travelling to auctions, Gemfields turned to a series of mini-auctions to sell rough rubies and emeralds. These generated US$58.9m from ruby sales and US$31.4m from emeralds this year making the ‘mini’ in mini-auctions appear misplaced. Not only does the US$90.3m in sales shore up the balance sheet, but the prices achieved point to strong customer demand for Gemfields’ stones.
Bushveld Minerals* (BMN LN) – Union urges return to work as unofficial stoppage at Vametco
Caledonia Mining* (CMCL LN) – Blanket mine Q1 gold production
Empire Metals* (EEE LN) – Results highlight progress at Eclipse gold project and nearing of completion on sale of Bolnisi copper project
Gemfields (GEM LN) – Kagem emerald auction
Greatland Gold (GGP LN) – Initial drilling at Scallywag
Petropavlovsk (POG LN) – NED appointment
Power Metal Resources* (POW LN) – Option extension at Australi
Companies: GML CMCL BMN EEE GGP POG POW SAV SHG
Aura Energy* - (AURA LN) – Half-year results and project updates
Condor Gold* (CNR LN) – Progress of infill drilling at La India
Conroy Gold & Natural Resources (CGNR LN) – New zinc anomaly on the Longford-Down Massif
Gemfields (GEM LN) – 2020 results show extent of the damage inflicted by the Covid19 pandemic
IronRidge Resources* (IRR LN) – High-grade gold intersections at Zaranou
Vast Resources* (VAST LN) – Updated Baita Plai mine plan
Companies: AEE GML CNR CGNR VAST IRR
Anglo Asian Mining* (AAZ LN) BUY – H2/20 exploration work returns exciting results at Gedabek CA
Bushveld Minerals* (BMN LN) - Strong Buy 31p – Vanadium prices rise as new demand meets tight supply
Gemfields (GEM LN) – Resumption of operations at Kagem and Montepuez after a year of disrupted production and sales
GoldStone Resources* (GRL LN) – Exercise of warrants raises £1.2m
Power Metal Resources* (POW LN) – Portfolio update
Strategic Minerals* (SML LN) – Continued access to Cobre confir
Companies: GML AAZ BMN GRL POW SML
Although Gemfields has been unable to hold full gemstone auctions since February, successful November and December emerald mini-auctions generated US$10.8m in sales. Full in-person auctions are planned for March 2021 if travel restrictions lift by then. Gemfields has taken steps to preserve cash, including keeping both mines suspended, and we now forecast end 2020 net debt of US$11.6m (from US$10.5m previously).
Bacanora Lithium (BCN LN) – Ganfeng exercises option to increase investment in Sonora Lithium project | Chaarat Gold* (CGH LN) - BUY – Production guidance reiterated after Armenia/Azerbaijan agree to a ceasefire | Endeavour Mining (EDV CN) – Q3 report declares first dividend as board mull London listing | Gemfields (GEM LN) – Sale process for SPM | Panthera Resources (PAT LN) – Bido field exploration plans | Serabi Gold* (SRB LN) – Q3 results hint that worst impact of Covid19 may be over with pr
Companies: BCN CGH EDV GML PAT SRB VASTN
Crimson Tide (TIDE): Corp Growing long-term subscription revenues | Gemfields (GEM): Corp 1H20 results | Trackwise Designs (TWD): Corp Production contract with EV manufacturer
Companies: GML TWD TIDE
Gemfields has provided an update on the impact of COVID-19 on its business. Mining remains suspended at both MRM and Kagem and will not resume before the end of September and October, respectively. The company hopes to hold its first auctions since February in December, but that remains subject to uncertainty given travel restrictions. Gemfields ended June with cash of US$53.6m and net cash of US$9.3m, which, together with cost-cutting measures, positions it well to continue to weather the storm
Cora Gold* (CORA LN) BUY – Target 17.2p - Another new discovery at Sanankoro | Edenville Energy* (EDL LN) – Rukwa update | Gemfields (GEM LN) – Montepuez and Kagem operations remain suspended in response to Covid19 | Phoenix Copper* (PXC LN) – First results from 2020 drilling programme at the Empire mine | Rio Tinto (RIO LN) – US$2.5bn interim dividend | Sunrise Resources Plc (SRES LN) –CS Project granted mining permit
Companies: CORA EDL GML RIO SRES
Avacta (AVCT): Corp | Gemfields (GEM): Corp
Considering the uncertainty surrounding COVID-19 (and Gemfields’ inability to hold emerald and ruby auctions while international travel is severely restricted), we have considered three COVID-19 scenarios in terms of recovery timing. In both our faster recovery and central case scenarios, Gemfields remains EBITDA positive in 2020 and ends the year in a net cash position.
Gemfields has published a second COVID-19 update, which details a range of new cost-saving measures alongside a reminder of its strong balance sheet. At the end of last week (17 April), Gemfields had a net cash position of US$33.2m and undrawn overdraft facilities available in Mozambique of US$30m.
In Mozambique, all non-critical operations and all expansionary capital expenditure have now been suspended. The ruby mine is now focused on maintenance and security. In the corporate office from 1
Antofagasta (ANTO LN) – 2020 Production expected to be at lower end of published guidance | Arkle Resources* (ARK LN) – Stonepark drilling | Central Asia Metals (CAML LN) – 2019 Sustainability report | Gemfields (GEM LN) – Suspension of all non-critical operations at Montepuez | Highland Gold (HGM LN) – 63.5koz delivered in Q1 with operations continuing uninterrupted on course for 290- 300koz FY20 target
Companies: ANTO ARK CAML GML
Anglo American (AAL LN) – De Beers diamond sales | Atalaya Mining (ATYM LN) –Operations suspended at Proyecto Riotinto | Caledonia Mining* (CMCL LN) – Seeking exemption from virus mitigation measures | Cora Gold* (CORA LN) 4.5p, Mkt Cap £5.9m – Commencement of drilling at Madina Foulbe, Senegal | Gemfields (GEM LN) – Suspension of operations | Pan African Resources (PAF LN) – Operations under lock-down | Rainbow Rare Earths (RBW LN) 1.5p, Mkt cap £5.7m – Doubling production to 20,000tpa for >20
Companies: AAL ATYM CMCL CORA PAF RBW GML
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EQTEC have just announced that financial close has been reached on the planned recommissioning of the 1MW EQTEC Italia MDC plant. EQTEC technology is being used to recommission the plant which will use straw and forestry wood waste to create energy.
Companies: EQTEC PLC
i3 Energy announced that it is increasing its next-twelve-month net operating income guidance to $US44M (pro forma acquisitions and associated recompletions/drilling). Net of our estimated G&A expenditure of $US8.0M (£5.7M) that equates to an adjusted cash flow from operations estimate of $US36.0M (adjusted to nullify the effects of debt). That compares to our prior estimated adjusted cash flow from operations estimate of $US29.6M. The increase reflects operational activity, namely, the drilling
Companies: i3 Energy Plc
With drilling due to commence soon and recent reports of a US$450-500/t MOP price we feel it is worth having a more in depth look at South Harz Potash. The Company owns three perpetual mining licenses and two exploration licences covering 659km2 and results from over 300 exploration holes drilled by the former East German state potash mining company in the South Harz potash basin in central Germany. South Harz's European-based management is now focussed on developing Western Europe's largest pot
Companies: South Harz Potash Ltd
As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
Companies: AMYT ARBB ARW BAG BEG BONH BWNG CWK DNK EML EPWN FBD FA/ GPH GSF GNC HUW IGC INSE KAPE KP2 MMAG NRR NESF OTMP ROL RUA SEN SUR TON TOU TXP TGL VLS WINK
Trifast reported FY21 results slightly ahead of consensus with industrial activity recovering above pre-COVID levels. The group seems well set on a strong medium term growth trajectory, backed by its Multinational OEM strategy and with potential for consensus earnings upgrades through the current year. Reiterate buy.
Companies: Trifast plc
Bluejay Mining* (JAY LN) – Chinese ilmenite prices continue to rise
Bushveld Minerals* (BMN LN) – Vanadium prices continue to rise in China to ~$37.7/kgV
Keliber – Environmental challenges rejected by Finnish Court
Zinnwald Lithium (ZNWD LN) – Acquisition of additional exploration licences in Saxony
Companies: JAY BMN ZNWD
KEFI Gold and Copper* (KEFI LN) – Progress report on Tulu Kapi and Saudi Arabian project
Panther Metals (PALM LN) – Exploration target for laterite nickel cobalt mineralisation at Coglia
Sunstone Metals (STM AU) – Reports over 500m of copper gold mineralisation in recent drilling at Brama
Companies: KEFI PALM STM
Falcon Oil & Gas has announced the commencement of the Company's 2021 work programme, starting with the resumption of clean-up operations at the Kyalla 117 well. The planned 2021 work programme will include multiple workstreams across three different plays in the Beetaloo, providing a near constant stream of news flow for investors. In addition to Falcon's comprehensive 2021 work programme, activity is expected to increase significantly across the rest of the Beetaloo, with the drilling of up to
Companies: Falcon Oil & Gas Ltd.
Full-year results were in line with expectations. Cost controls contained the reduction in profits, with adjusted EBIT margin down 150bps to 6.4%, while a focus on cash resulted in cash conversion of 148%. With net cash of £13.3m, the group is in a strong position to step up its acquisition strategy in a fragmented market. Some short-term cost and supply chain issues have previously been flagged, which affect short-term margins, but should be recouped. No change to forecasts or our 187p price ta
Lancaster production approval
Companies: Hurricane Energy Plc
Challenger Energy (CEG LN)C; Target of 12p per share: Drilling update in Trinidad - The Saffron well penetrated various Middle Cruse zones including hydrocarbons zones as prognosed pre-drill, and with drilling rates and impact on surrounding clays and mobile shales improved significantly from Saffron-1 owing to the use of synthetic-based muds and a solid foundation for drilling design in any future field development. Initial petrophysi
Companies: VOG LUPE TLW WEN SOU AKRBP AKERBP REP REP I3E HUR EQNR EQNR ENI ENI
The digital brand protection and online threat hunting solutions specialist has announced its full year results the year ended 31 December 2020 (FY20A), confirming annualised recurring revenue (ARR) growth of 71% to $3.3m at year end and continued strong growth in the first half of 2021, with the May ARR figure standing at $3.8m, a 93% increase relative to May 2020. ARR is the key metric for assessing SaaS (Software as a Service) companies, and BrandShield’s swift progress to date confirms it is
Companies: BrandShield Systems plc
The Calabar power station, which accounts for the majority of Savannah’s Nigerian gas sales, has entered a new power supply agreement with the Republic of Togo, with more in discussion, raising the prospect of meaningful increases in Savannah’s gas supplies to the plant. These additional volumes will come at negligible additional cost, leveraging the bottom-line impact. The recently signed Mulak Energy gas sales agreement demonstrates this, boosting our 2022 earnings by 8% and our risked-NAV and
Companies: Savannah Energy Plc
• Gas demand in Tanzania continues to be very high with YTD production averaging 80.3 mmcf/d, well above last year (58.1 mmcf/d). While gas demand is normally low during 2Q (because of hydro), we estimate 2Q21 production at ~75 mmcf/d.
• As a result, Wentworth is increasing its production guidance for 2021 from 65-75 mmcf/d to 75-80 mmcf/d.
• At the end of May, Wentworth held US$21.5 mm in cash and no debt. This is close to our expectations of US$21.4 mm at the end of June. This also implies th
Companies: Wentworth Resources PLC