Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: AAL, GSK, MONY, MTO, PDL, IQG, & SMD.

Q3 Operational Update

Petra has released its Q3 Operating Update this morning. On an operational front it has been a stable quarter with total diamond production up 3% from last quarter. This was helped by higher production from both Cullinan and Finsch mines whose diamond production was up 7% and 14% Q-o-Q respectively - these are broadly in line with our estimates with production being 7% below our estimate (see below). As expected, overall ore processed was down 25% from Q2 as Williamson remains offline.

SP Angel Morning View: Copper and Iron ore extend gains on improving China construction activity

Interim Results - Difficult H1 presents investment opportunity

Petra Diamonds (LSE: PDL) has just released its interim financial results for six months ending 31 December 2022. The company has already published its operational and debt figures for the period, and therefore the key focus is on costs, profits and future guidance. The company's interims are largely in line with our expectations (set post the operational report). They reflect a frustrating first half of the year that included the shutdown of Williamson, higher than expected dilution of C-cut Ro

SP Angel Morning View: Gold holds ground near 8-month high as further Fed members call for gentler rate hikes

Atalaya Mining (ATYM LN) – Rio Tinto plant operating above capacity to deliver 2022 copper production above guidance range BlueRock Diamonds* (BRD LN) – Notice of Statutory Demand has now been served on BlueRock Diamonds by Mr Leslie First Quantum Minerals (FM CN) – Copper production rises in Q4 but fails to offset Zambian rains in Q1. Cobre Panamá situation remains uncertain. Great Western Mining (GWMO LN) – Successful completion of £800,000 equity placing to advance mill construction and fu

SP Angel Morning View: Copper and gold prices show strong start to year as traders await renewed Chinese buying

Anglo Asian Mining* (AAZ LN) - BUY – Anglo Asian to transition to mid-tier copper producer as Q4 and full year production at top end of forecast range Bluejay Mining* (JAY LN) – Enonkoski joint venture starts new drill program in Finland Culpeo Minerals* (CPO AU) – Phase-2 drill programme continues to yield positive results Petra Diamonds (PDL LN) – Reduced production guidance as operating improvements provide greater stability Power Metal Resources* (POW LN) – £900k equity raise Tertiar

Petra Diamonds (LSE: PDL) - H1 FY23 Operating Update

Petra has released its H1 Operating Update this morning. The key figures of diamonds sold and revenue came in line. Overall, though, it has been a difficult first half with the failure of the tailings dam at Williamson in Tanzania, tonnages at Finsch coming under pressure due mainly to equipment issues and Cullinan suffering grade decline due to dilution. This has not been helped by the previously reported collapse/closure of two of the tunnels in the block cave which will take until FY24 to re

Petra Diamonds (LSE: PDL) - 3rd Tender

Petra announced the results of Tender 3 of FY 2023, this morning, at which 305,366 carats were sold for a total of US$42.3 million across Petra's mining operations. The average price received was $138/ct up from $137/ct in Tender 2. Like-for-like rough diamond prices improved by 2.2% on Tender 2 FY 2023 and by 7.4% compared to Tender 2 of FY 2022. YTD prices ($162/ct) are up 12.7% compared to the first three tenders of FY 2022. Crucially the company has not sold any exceptionals despite mining i

Petra Diamonds (LSE: PDL) - Williamson Update

Petra Diamonds released an update, this morning, regarding the Tailings Storage Facility (TSF) wall breach at their Williamson mine in Tanzania. Understandably the announcement today provides further detail on the breach including remedies and effects. We note that the assessment team have concluded there is a low risk of further breaches of the TSF or breaches of the New Alamasi water dam. WDL has constructed a 6m high wall to close the breached wall area and precautionary measures have been

SP Angel Morning View: Copper stabilises on China covid reopening, dollar weakness and Beijing property stimulus measures

Anglo American (AAL LN) – Appointment of new Group Director-Technical Europa Metals Limited (EUZ LN) – Mineral resource increase at Toral Galantas Gold* (GAL LN) – BUY, TP:54p – Q3 results show strong cash position ahead of production restarting at Omagh Mkango Resources* (MKA LN) – Q3 results underpinned by release of DFS Metal Tiger (MTR LN) – Disposal of 49% interest in Kalahari Metals Petra Diamonds (PDL LN) – Williamson mine expected to resume production in mid-2023 Sunrise Resourc

Petra Diamonds (LSE: PDL) - Initiating Coverage

Petra's recent introduction of a dividend policy has marked a key milestone in the company's recovery from over-indebtedness, through recapitalisation to best-in-class cash generation. The company's diamond sales prices remain relatively strong which we would imagine is partly down to Alrosa supply constraints. Operationally Cullinan is now delivering, likewise Finsch and the company has been quick to address concerns around Williamson and deliver guidance for the mine. The award of a dividend i

Fully funded for range of activities - operational and key third party evaluations

Andrada Mining: Lithium driving value after “numerous unsolicited approaches” to accelerate Uis development

Andrada Mining (“ATM”) has announced several unsolicited approaches from international entities to accelerate production from its lithium portfolio through a potential strategic partnership in its Uis project in Namibia. A global investment bank has been appointed to provide a structured assessment of potential partners based on financial and technical merits. After the expansion of the Phase 1 tin operation in 2022, Uis achieved record quarterly tin concentrate output for the three months to Fe

Initial Equity Trading Comments - 15 May 2023

Touchstone Exploration+ (TXP, House Stock at 58p) - US$7m revolving loan facility

Jersey Oil and Gas (JOG LN) - Full year 2022 results

JOG has released its full year 2022 results. These report a net cash holding of £6.6m which, alongside upcoming payments under the GBA farm out deal with NEO Energy, gives JOG a very strong funding base. The statement also reiterates the company’s focus on progressing its GBA project, including approval and closure of the farm out, progression of the Buchan development plan, likely a second farm out, and then FID in H1 2024. We expect this to represent a series of catalysts over the coming month

Cenkos: Diversified Energy Company Plc -- 54% Cash Margin & 37% Annualised FCF Yield

Despite the challenging commodity price environment, Diversified has announced a strong set of Q1/23 results. Cash margins and annualised free cash flow yield increased to c54% and c37% respectively, as a result of lower per-unit expenses and the Company's robust hedging portfolio. Diversified's hedging strategy continues to advantageously position the Company, with remaining 2023 average natural gas hedge floors of US$3.79/Mcf at a 35% premium to current strip pricing, and a 55% premium to the

Pantheon Resources (PANR) – Corporate – Successful $22m Placing

Pantheon Resources announced the closing of a $22m significantly oversubscribed placing and subscription priced at 17p. The use of proceeds will include: i) funding the flow testing of the Alkaid#2 well from the SMD horizon, ii) funding a competent person report to be prepared by Netherland Sewell and Associates covering the Theta West and Alkaid oil discoveries, iii) funding the preparation of dynamic models and field development models to be prepared by SLB (formerly Schlumberger) and iv) fund

The time has come!

In the next six months, Aminex (AEX) will embark on a development programme that will see the company become a producer and free cash flow (FCF) generator. Between drilling the new Chikumbi-1 well (CH-1), re-entering the existing two wells, processing of the new 3D seismic, signing a GSA, and reaching first gas, there will be plenty of milestones in 2023 to, in our view, gradually “guide” the market towards recognising a full value for the targeted initial 60mmscf/d gross production in late 2023

LIBERUM: Caledonia Mining* - The worst should be behind us; onwards and upwards from here

LIBERUM: Helium One* - >60% increase in Helium resource

Hybridan Small Cap Feast - 23 Feb 23

23rd May 2023 @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 objectiv

Hybridan Research: Sector Review: Critical minerals for UK - mining and battery recycling: 09-05-2023

Virgin mining: Energy security and decarbonisation are driving the race in the sourcing of critical minerals from the natural world. This has contributed to the revival of exploration activities in the US, Europe and to a lesser degree the UK. For example, the global identified lithium resources increased from 40m tonnes in 2015 (the Paris Agreement year) to 97m tonnes in 2023, at a CAGR of 12%, according to the U.S. Geological Survey data. For example, there was no identified lithium resources

Reserves at Shell: Shooting itself in the foot?

Hangover from the noughties debacle still seems to weigh Is Shell''s seeming conservatism on SEC reserves accounting effectively shooting itself in the foot? After two weeks of talking with investors, several of whom expressed concern that Shell''s lowly reserves life would require it to spend beyond guidance to sustain its hydrocarbon business, our impression is, most likely, yes. Push into the details and time and time again, all too apparent in our view is that when it comes to reserves accou

Successful first test at CN-1

Anglo Asian Mining* - FY22 reflect lower gold production, FY23 guidance reiterated and 8c dividend maintained