Adriatic Metals* (ADT1) – Adriatic Metals increase loan to Tethyan Resources | Arc Minerals* (ARCM LN) – Don Bailey resigns from board as Anglo American steps in with exclusivity agreement | Jubilee Metals (JBL LN) – Jubilee appointed to recommission and operate chrome plant at Inyoni in South Africa | Petropavlovsk (POG LN) – Board update | Rio Tinto (RIO LN) – Rio Tinto executives lose bonuses over destruction of ancient caves in Australia| Shanta Gold (SHG LN) – Interims highlight strong FCF and positive net cash status | Strategic Minerals* (SML LN) – Redmoor project review | Sunrise Resources (SRES LN) – £1m fundraising | Tertiary Minerals* TYM – Buy-back and cancellation of deferred shares
Companies: ADT1 ARCM JLP POG RIO SHG SML SRES TYM
Jubilee announces today it has both acquired a new chrome processing facility in South Africa (Windsor 8) from a private group in South Africa and arranged an offtake agreement that fully fills its existing Windsor Chrome circuits for the next three years. Jubilee will operate Windsor 8 and make circuit changes to maximise recoveries – Jubilee commits to spending £0.44m to upgrade the plant but is entitled to this (plus interest) back before sharing earnings form the JV on a 70:30 basis with its JV partner. “Windsor 8” is located ~50km from Windsor towards Rustenburg along the Western Limb of the Bushveld complex in the heart of the Bushveld chrome resources – extending Jubilee's reach for further potential parcels of additional material further west.
Companies: Jubilee Metals Group Plc
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
Jubilee Metals successfully processes chrome tailings in South Africa to produce chrome concentrate and PGMS. It also owns the commissioned Sable copper refinery at Kabwe in Zambia and is looking to build a zinc-lead treatment plant at Kabwe next to the Sable refinery to process old tailings from the Kabwe mine. Today Jubilee announces that it has secured access rights to process 2Mt of Run-Of-Mine material grading in excess of 2% copper in Zambia with the potential to add a further 2.5Mt of tailings – Project “Roan”; an as yet an undisclosed project location in Zambia. This material will be upgraded at the “Roan” site with the concentrate shipped off to Jubilee's Sable Refinery to produce copper cathode. Initial target is set at 10kt contained copper/yr from Roan, and Jubilee hopes to begin production in 4 months' time with full production reached in 8 months – advanced preparations have been made, plans drawn up and discussion with equipment manufacturers already accomplished – Jubilee is ready to hit the ground running.
Centamin (CEY LN) – Q2 results confirm 2020 production and cost guidance remains broadly intact | Jubilee Metals Group (JBL LN) – Interims highlight strong PGM earnings growth and maintenance of cash position | Novagold (NG CN) – Novagold suing short-selling firm J Capital Research for defamation (Mining.com) | Panther Metals (PALM LN) – Raising £250,000 | Pensana Metals (PM8 AU) – Drilling from Longonjo – updated mineral resource estimate expected by end of September | Vast Resources* (VAST LN) – Baita Plai development update
Companies: CEY JLP NG PALM VAST
Jubilee today takes us through its H1 2020 numbers, which, importantly, cover the critical COVID-19 initial lockdown period in South Africa. The numbers continue to show growth and progress, with headline H1 2020 operational earnings up 54% to GBP 12.8 million – the sixth consecutive, six-monthly period of double-digit growth. The cash position increased to £10.8m despite settling the final payment of £1.4m for the acquisition of additional PGM and chrome rights as well as settling historical debt of £2.5m, all while commissioning the Zambian Sable Refinery. Following the appointment two months ago of new CEO Rob Richards, VDTK's newsflow has been encouraging in recent weeks, and we view this morning's announcement as a further affirmation of the company's renewable energy solution. Today's RNS highlighting a contract to supply ultra lightweight, flexible solar panels to Black Tulip Minerals SA, of Peru, is, at over €200,000, the latest in a string of recent positive announcements, while also taking the company into a completely new sector which it had announced as a target area. Image Scan is a specialist in the field of X-ray imaging for the security and industrial inspection markets. The company has announced, as part of its organic growth strategy, a new partnership agreement with a major security technology company that will lead to the launch of a new range of security X-ray screening systems for the international market. Competitively priced, and leveraging Image Scan's IP and direct and indirect international channel partners, the new system will be a high performance, competitive conveyor X-ray machine, suitable for security checkpoints in government and commercial buildings around the world. Importantly, these systems will also allow the company to increase its recurring service and support revenue.
Companies: IGE JLP VDTK
Robust, cash-generative production from mining waste Jubilee operates several chrome-Platinum Group Metal (PGM) operations in South Africa and is constructing a zinc-lead (vanadium) plant at Kabwe in Zambia after already commissioning the copper and cobalt circuits (the ‘Sable' refinery). The company has a growth pipeline identified and significant opportunities to find new projects in Africa (or globally); more specifically, Jubilee announced that it is looking to increase its copper (cobalt) production in Zambia aggressively to make full use of the Sable Refinery. Jubilee also owns the Tjate PGM project in South Africa, which is currently on hold. The company model is to treat its own waste materials and to supplement these with third party ores and wastes where possible. This year has been nothing if not eventful for Jubilee, but further progress and material catalysts are expected over the course of 2020. Jubilee has a high-margin business with cash on hand, and we see plenty of opportunities for Jubilee to capitalise on its robust business model through the global Covid-19 crisis and beyond. We initiate with a fair value of 11.2p/sh
Jubilee Metals (JLP) – Corporate – Large copper tailings project in Zambia – staged expansion for Sable Market Cap £82m Share Price 3.8p Jubilee announced yesterday that it had secured a JV with a private company - Star Tanganika – for the rights over a copper project at Ndola in Zambia. The purchase price was $5m ($0.6m in cash the rest in shares in Jubilee) which will be used to advance a further potential copper tailings project held by the owners of Tanganika. Jubilee will provide all of the operating and capital funding for the first phase project and will receive 75% of the project earnings until all capital is recovered dropping to 60% after that – Jubilee will also have first right of refusal over the copper-bearing concentrates produced on 3rd party offtake terms.
Gold – Robust pricing, improved returns and increased interest The robust gold price, currently sitting comfortably above $1,700/oz, has been one of the bright spots of the current COVID crisis, although the roots of the price increase were seen well before from mid-2019 on geopolitical and trade concerns. Gold mining companies have been reaping the rewards of the higher price with forecast profits and cash expected to grow significantly. The increase in gold price has been reflected by share price appreciation for most of the gold-mining sector; gold miners, those companies developing gold projects and even gold explorers have all seen an uptick in share prices. Those companies in production should see considerably higher profits and we expect the level of dividends back to shareholders to rise. The rate of M&A in the sector might also increase, as in previous high price periods, with some companies assuming that these prices can be sustained – however, they will have to be careful as a rash of M&A in previous cycles has shown that there may be a price to pay later on and the industry can ill afford a return to eye-wateringly large write-downs on the other side of this cycle. Gold miners will also have to behave prudently as there will, of course, be a temptation for higher throughput and production, regardless of grade, to generate more cash – a decreasing profit margin perhaps, but a lengthening mine life; as in everything there is a balance to be made to ensure sensible returns. We are most heartened by a renewed interest in the previously (seemingly) ignored junior explorers which we think is a theme that will develop and continue.
Companies: AEE CMCL CNG GDP JLP
Judges Scientific, a group involved in the buy and build of scientific instrument businesses, has provided a trading update ahead of its AGM today. Year-to-date organic order intake, as of mid-May, was down 18.5% compared to the same period in 2019, caused by the closure of universities, the cancellation of scientific conferences and travel restrictions impacting sales and installations. Although the precise impact to order intake has varied by global territory, from minus 4% to minus 25%, the order book, at the end of April 2020, stood at a respectable 11.9 weeks (down from the 13.2 week starting position), the weaker order intake countered by reduced deliveries. Jubilee announced yesterday that it will move its fine chrome plant from the Dikolong Chrome Mine (DCM) in South Africa to either its Windsor or Inyoni plant. DCM is not currently operational and Jubilee could make better use of its capacity at one of its other plants. Jubilee is a world-leader in fine-chrome recovery and the relocation of its plant will be earnings enhancing at one of the other locations.
Companies: Jubilee Metals Group Plc Judges Scientific Plc
Interims highlight the robust business model Jubilee, which specialises in creating value from African mine tailings, today provides its interims for the half year ending December 2019. As previously announced this has been a transformational period for Jubilee – everything increased relative to the prior period, with revenues rising to £25.4m (+205%), attributable Group earnings to £9.8m (+778%), cash from operations to £4.9m (+574%) and an EPS of 0.35p (0.06p). Growth came from Windsor (PGM and chrome production in South Africa), with several intra-period transactions that will enable the growth profile to continue at Inyoni (South Africa) and Kabwe (Zambia). Covid-19 has had an obvious impact (on prices received and on the operating environment – especially in South Africa where there is a 3-week shut-down) but we see a robust, cash-rich company, operating a high-margin business that is poised to restart production and capitalise on the progress made to date. WHI View: We continue to see a robust investment case for Jubilee. The company has a growth pipeline identified and significant opportunities to find new projects in Africa or globally. The ‘Jubilee Way' combines an experienced, technical management team with innovative processing techniques to generate cash from (mainly) the waste material produced as part of the mining cycle. The company model is to treat its own waste materials and to supplement with third party ores and wastes where possible. It has three chrome/PGM operations in South Africa and a copper-zinc-lead-vanadium project in Zambia (copper circuit already commissioned). This is a high-margin business and we see plenty of opportunities for Jubilee to capitalise on its robust business model when the current global crisis is over.
Jubilee, which specialises in creating value from African mine tailings, today provides its interims for the half year ending December 2019. As previously announced this has been a transformational period for Jubilee, during which everything increased relative to the prior period: revenues to £25.4m (+205%), attributable Group earnings to £9.8m (+778%), cash from operations to £4.9m (+574%) and EPS to 0.35p (0.06p). Growth came from Windsor (PGM and chrome production in SA), with several intra-period transactions that will enable the growth profile to continue, at Inyoni (SA) and Kabwe (Zambia). Covid-19 has had an obvious impact (on prices received and on operating) but we see a robust, cashrich company, operating a high-margin business that is poised to restart production and capitalise on the progress made to date.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Jubilee Metals Group Plc. We currently have 48 research reports from 4 professional analysts.
Central Asia Metals (CAML LN) reported robust interim results in the context of the H1 2020 backdrop; solid production and the company’s fundamentally low cost base meant that CAML remained profitable despite the sharp pullback in commodity prices during the period which led to a 17% YoY decline in revenue to US$70.8m. Consequently, EBITDA was down 25% YoY to US$42.5m despite a decline in unit costs of 6% YoY at Kounrad and 9% YoY at Sasa to US$0.48/lb and US$0.43/lb respectively which cushioned the impact of the weaker the top line. With no significant one offs in the period, EPS of US$0.10/sh. was 33% lower YoY.
Companies: Central Asia Metals Plc
EQTEC announced (last Friday afternoon) an extension of the exclusivity period of the Billingham MOU until 22 November 2020. The extension of the MOU exclusivity period is with the aim of finishing the preparation of a legally binding option agreement with Scot Bros. which, if agreed, will grant EQTEC and its partners the right, but not the obligation, to purchase the entire issued share capital of Billingham EFW Limited (the project SPV) from Scott Bros. subject to an agreement on consideration and other terms.
Companies: EQTEC Plc
Talitha Shelf Margin Deltaic LKA resource report
Companies: Pantheon Resources Plc
West Newton B-1 drilling update
Companies: Union Jack Oil Plc
Three day CMD to detail how BP will redeploy hydrocarbons’ capital into renewables. The latter are expected to grow by 12% CAGR by 2030, which surely is more exciting than oil. Returns do not compare though, but BP intends to make good use of its trading division to bridge part of the gap. Lowering the dividend took care of the rest. Overall, BP diversifies its risks early, which might prove right if oil stays under $50.
Companies: BP Plc
Trinity has announced a strong set of interim results during a highly volatile period, with production increasing by 9% year-on-year to 3,282bopd (H1/19 3,007bopd). Operating break-even's post hedging in H1/20 reduced to US$22.3/bbl, a 15% year-on-year reduction and a 65% reduction since 2014. Similarly, a relentless drive to improve efficiencies and reduce costs has seen G&A and opex fall by 67% and 65% respectively since 2014. Despite the dramatic fall in oil prices, Trinity's strong production performance combined with its receipt of VAT receivables via a VAT Bond sale and the drawdown of a small working capital facility facilitated cash balances increasing by 43% to US$19.7m from YE2019. Trinity is well positioned to grow both organically and inorganically, with Trinity signing MoU's and submitting EOI's (in consortium with Cairn Energy Plc) to pursue new opportunities of scale. We set our price target a 31p/share, a 248% premium to the current share price and reiterate our BUY recommendation.
Companies: Trinity Exploration & Production Plc
Saudi Arabia's warning to OPEC+ cheaters and short-sellers alike helped oil prices stage their biggest weekly rally since June, despite a grim start to the week as industry heavyweights painted a troubling demand picture for the petroleum complex. Futures in New York rose 10% this week following a show of determination by Saudi Arabia, the most influential nation in the Organisation of Petroleum Exporting Countries, to defend the market on Thursday. The Saudis hinted they are prepared for new production cuts, and lambasted OPEC+ members that have cheated on production quotas. Prices briefly fell as much as 1.6% on Friday following an announcement from Libyan military commander Khalifa Haftar that he will allow crude production and exports to resume. But while Haftar reached the agreement with the country's deputy premier, it was unclear whether the deal that excluded the National Oil Co would actually restart exports. Haftar controls most of eastern Libya and has halted operations and shipments from his territory as part of a campaign against the internationally recognised Tripoli government. The OPEC member is pumping just 80,000 barrels a day, but produced 1.2 million a day last year. Oil reversed last week's losses, which pushed West Texas Intermediate futures toward $37 a barrel amid a slew of downbeat demand forecasts from the International Energy Agency to Trafigura Group and BP Plc. Helping support prices this week, US government data showed crude and gasoline stockpiles declining. American oil stockpiles are now at their lowest since April. But crude may not be out of the woods just yet, with distillate supplies at record highs and refining margins for the fuel deteriorating in the US and Europe. Meanwhile, rising coronavirus infections in Europe raise the spectre of a return to tighter restrictions that have crippled consumption. Prices West Texas Intermediate for October delivery rose 14 cents to settle at $41.11 a barrel. Brent for November settlement lost 15 cents to end the session at $43.15 a barrel. The contract rose 8.3% this week, its largest weekly gain since June.
Companies: FO PRP 88E DGOC EME TRIN UOG
Falcon has announced the resumption of activities at Kyalla 117 with the fracture stimulation of the well, and extended production test to follow. Initial results from the production test are expected in Q4/20, with final results expected by the end of Q1/21. Following the farm-down of a 7.5% participating interest to JV partner Origin Energy in April, Falcon is fully funded through the upcoming drilling campaign. We believe success at the Kyalla well will result in the JV further evaluating the potential of the Kyalla liquids rich gas play, thereby fast-tracking the potential commercialisation and monetisation of Falcon's 22.5% working interest. We reiterate our 39p price target (a 406% premium to the current share price) and our BUY recommendation.
Companies: Falcon Oil & Gas Ltd.
UKOG has this morning announced that the Xodus Group has estimated that the Loxley gas field has a best estimate recoverable resource of 44bcf gross and 34 bcf net to UKOG within its 100% held PEDL234 licence. The company has indicated the resource estimate must be proven by future production results and that the development of Loxley is subject to planning consent.
Companies: UK Oil & Gas Plc
Ready to steppe it up – initiating coverage
Companies: Enwell Energy Plc
Hargreaves’ FY20 results are very solid indeed. As previously reported, the only noticeable impact from COVID was in the slippage of Blindwells’ land sales, which were due to conclude during the lockdown period. Site activity has resumed and sales remain on track to conclude in the current year. A final dividend of 4.5p has been declared and the outlook statement is measured but confident. We reintroduce forecasts today, effectively reinstating our pre-COVID expectations. Hargreaves is well positioned to deliver a period of significant, renewed growth with the prospect of a double digit dividend yield from FY22 as HRMS profits are distributed.
Companies: Hargreaves Services Plc
There was less tension this quarter, as Shell had already cut its dividend in Q1. The trading units rose to the occasion, bringing a positive surprise in this horrendous quarter. The company has recorded a very large impairment, and is poised to announce a strategic shift once 2020 is in the books.
Companies: Royal Dutch Shell Plc
The COVID-19 pandemic has had a significant impact globally in many areas. While primarily a health issue, it has had wide-ranging implications for stock markets, which have now rallied after the plunge in share prices in mid-March when the full severity of the emerging pandemic became more widely appreciated. Nonetheless, the FTSE 100 Index remains almost 20% off its late February 2020 figure.
Companies: AVO ARBB ARIX CLIG DNL GDR ICGT NSF PCA PIN PXC PHP RECI STX SCE TRX SHED VTA YEW
Production Unit licence for Talitha progressed
