Metals Exploration: Q1 Results - solid production and cost performance

Metals Exploration (“MTL”), which operates the Runruno gold mine in the Philippines, provided a Q1’24 operational update last week. Q1 gold output was 23koz, +20% vs H&Pe and 15% ahead of the rate required to hit the top of FY24 guidance. With three years left at Runruno, mined grades remain strong at 1.35g/t. Key drivers of the beat were ore throughput and recovery rates, coming in at 581kt and 90%, respectively, 14% and 4pp above H&Pe. With the mezzanine debt fully repaid, albeit at a disputed

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

Things lining up nicely…

In last couple of weeks, besides its 2023 annual results, Aminex also provided an update on two important developments for the company.

Jersey Oil & Gas (JOG LN) - Full year 2023 results

JOG has released its results to the end of 2023, confirming a strong £10.5m cash holding number, and providing an update on progress towards FID on its Buchan development project.

Jersey Oil & Gas - Annual Results – We Remain Bullish

Jersey Oil & Gas provided its annual results for the year ended 31 December 2023, in which we believe the key interest relates to updates on the progress towards project sanction for the Buchan field.

Gulf Marine Services (GMS LN) - Further net debt reduction

GMS has announced an update on its net debt position, showing further reductions, as expected

Morning Note – 13 May 2024

TENNYSON Morning news – Diversified Energy – Solid Q1s; midstream efficiencies

Union Jack Oil (UJO LN) - Final dividend declared

Union Jack has announced a final dividend for 2023 of 0.25p/share, following the 0.30p/share interim dividend announced and paid during 2023.

Savannah Resources* (SAV LN) 3.5p, Mkt Cap £64m – Major rerating catalysts due over the next 12 months

TENNYSON Energy Research - i3 Energy - Out of the woods

.

Caspian Sunrise - Proposed Sale of BNG Shallow Structures for $83m

Caspian Sunrise announced it has entered into an agreement to grant exclusivity to Absolute Resources LLP a Kazakh registered company in connection with the proposed conditional sale of the MJF and South Yelemes structures at the BNG Contract area for a consideration of $83 million.

TENNYSON Morning news – Afentra PLC – Azule Government approval, Punja tax boost

Oil & Gas - Cavendish sector note

Diversified Energy, Hartshead Resources, 88 Energy, bp, Harbour Energy, PetroTal, Genel Energy, Kosmos Energy, Vaalco Energy, John Wood Group, Saudi Arabian Oil Company, Tethys Oil, Orcadian Energy, DNO ASA, Valeura Energy, Panoro Energy Source: FactSet, weekly change 07/05/2024-10/05/2024 Oil edged higher as key technical levels provided a floor for losses while investors digested a mixed US inventories report.  West Texas Intermediate rose 0.3% to settle above $79 a barrel after a monthlong sl

SP Angel Morning View: Gold pushes higher as rate cut optimism resurfaces as labour market cools

Share buyback announced

SP Angel Morning View: Copper jumps over $10,000/t to near 10-year high on rising confidence