Amur Minerals* (AMC LN) – $165k coupon collected NRR convertible | Anglo Asian Mining* (AAZ LN) – Production at 69koz GEO and cash balance climbing to ~$40m in FY20 | Atalaya Mining (ATYM LN) – Record copper production at Proyecto Riotinto in 2020 | Condor Gold* (CNR LN) – Directors exercise options | IronRidge Resources* (IRR LN) – 12,500m drill programme commenced at Ghana Lithium Project | Ormonde Mining* (ORM LN) – Ormonde announce deal for new high-grade copper, silver and zinc projects | Orosur Mining* (OMI LN) – FY Q2 2021 Results | Strategic Minerals* (SML LN) – Cobre Q4 magnetite sales | URU Metals* (URU LN) – Possible disposal of Zebediela project
Companies: AMC AAZ ATYM CNR IRR ORM OMI SML URU
Amur Minerals* (AMC LN) – $165k coupon collected NRR convertible
Anglo Asian Mining* (AAZ LN) – Production at 69koz GEO and cash balance climbing to ~$40m in FY20
Atalaya Mining (ATYM LN) – Record copper production at Proyecto Riotinto in 2020
Condor Gold* (CNR LN) – Directors exercise options
IronRidge Resources* (IRR LN) – 12,500m drill programme commenced at Ghana Lithium Project
Ormonde Mining* (ORM LN) – Ormonde announce deal for new high-grade copper, silver and zinc projects
Orosur Mining* (OMI LN) – FY Q2 2021 Results
Strategic Minerals* (SML LN) – Cobre Q4 magnetite sales
URU Metals* (URU LN) – Possible disposal of Zebediela project
Companies: OMI ORM AMC AAZ CNR SML URU ATYM IRR
Eurasia Mining* (EUA LN) – West Kytlim Definitive Feasibility Study update | GoldStone Resources (GRL LN) – Mining lease expanded at AHKM as Board prepare to commence production | IronRidge Resources* (IRR LN) – Phase-3 drilling extend area of gold mineralisation at Zaranou | Mkango Resources* (MKA LN) – Mineral sands exploration at Mchinji | Rambler Metals and Mining* (RMM LN) – Restructuring timetable | SolGold* (SOLG LN) – Further assay results as Porvenir drilling effort expands | Strategic Minerals* (SML LN) – £700,000 fund-raising
Companies: EUA GRL IRR MKA RMM SOLG SML
BHP (BHP LN) – MOU signed with Baowu Group | Bluejay Mining* (JAY LN) – Bluejay shares list on the US OTCQB market today | Botswana Diamonds (BOD LN) – Geophysics helps identify November drilling targets at Marsfontein and Thorny River | Bushveld Minerals* (BMN LN) – BUY, Valuation 37.7p – US$35m convertible loan note with Orion Mine Finance | Oriole Resources (ORR LN) – Planned resumption of aircore drilling at Senala | Peak Resources (PEK AU) – Peak adds Tanzanian lawyer as an NED to the board | Power Metal Resources* (POW LN) – Application for additional license at Australia gold JV | Strategic Minerals* (SML LN) – Review of Leigh Creek development plan and project economics | Sunrise Resources (SRES LN) – Completion of drill hole at the Clayton silver-gold project | Tri-Star Resources* (TSTR LN) – H1 2020 Results and restoration of trading | Vast Resources* (VAST LN) – GMs scheduled late November including the proposed consolidation of the interest in Romanian assets
Companies: BHP JAY BOD BMN ORR POW SML SRES
Ariana Resources* (AAU LN) – 2020 guidance maintained as plant expansion considered at Kiziltepe | Bluebird Merchant Ventures (BMV LN) – Independent expert appointed for valuation to consolidate South Korean gold mines | Botswana Diamonds (BOD LN) – Geophysics to refine November drilling targets at Marsfontein and Thorny River | Jubilee Metals Group (JLP LN) – Q3 production sees operating earnings rise to £15m | Orosur Mining* (OMI LN) – Funds received for exploration at Anzá project | Panthera Resources (PAT LN) – Exploration plans for the Bassala project | Pensana Rare Earths (PRE LN) – Study into UK REE processing facility | Scotgold Resources* (SGZ LN) – £3m raise to accelerate Phase II expansion and fund exploration | Strategic Minerals* (SML LN) – Cobre Q3 magnetite sales | Vast Resources* (VAST LN) – Indicative timeline for asset backed debt funding
Companies: AAU BMV BOD JLP PAT PRE SGZ SML VAST
Altus Strategies* (ALS LN) - BUY – 115p – Drilling at the Lakanfla Gold Project commenced | Aura Energy* - (AURA LN) – Progress on Mauritanian gold and base-metals projects | Caledonia Mining* (CMCL LN) – Agreement to assess Government-owned mining opportunities in Zimbabwe | Castillo Copper (CCZ LN) – Re-interpretation of Eldorado prospect in Queensland | Rockfire Resources (ROCK LN) – Drilling results from Plateau project in northern Queensland | SolGold* (SOLG LN) – First hole at Cacharposa prompts Solgold to plan an extended drilling campaign | Power Metal Resources* (POW LN) – Project Portfolio Update | Strategic Minerals* (SML LN) – Redmoor scoping study update
Companies: ALS ROCK SOLG POW SML
Botswana Diamonds (BOD LN) 0.73p, Mkt Cap £4.5m – Kimberlite intersected in drilling at Marsfontein | Central Asia Metals (CAML LN) 152p, Mkt Cap £267m – Sasa plant suspended after tailings leak | Kenmare Resources (KMR LN) 251p, Mkt cap £263m – Relocation of the concentrator underway | Mkango Resources* (MKA LN) 6.25p, Mkt cap £7.9m – Heavy minerals exploration success in Malawi | Power Metal Resources (POW LN) 1.275p, mkt cap £10.2m – Option exercised for Canadian silver project | Strategic Minerals* (SML LN) 0.43p, Mkt Cap £7.4m – Reports H1 profit as Leigh Creek moves ahead and Cobre masters Covid19 challenges
Companies: BOD CAML KMR POW SML
Arkle Resources* (ARK LN) – Mine River soil sampling Bacanora Lithium (BCN LN) – Operational update at Sonora Project in Mexico | BlueRock Diamonds (BRD LN) –– BlueRock recovers 9.7ct diamond | Cornish Metals* (CUSN CN) –– First results from drilling at South Crofty in Cornwall | Greatland Gold (GGP LN) – Recent drilling expands northern breccia zone at Havieron as WA grants Mining Lease | Predictive Discovery (PDI AU) – Results of further drilling at Bankan | Strategic Minerals* (SML LN) – Confirmation of Leigh Creek environmental submission | Sunstone Metals (STM AU) – Drilling starts at Espiritu gold-silver prospect in Ecuador
Companies: ARK BCN BRD GGP PDI SML STM VAST
Adriatic Metals* (ADT1) – Updated mineral resource for Rupice Silver Deposit in Bosnia & Herzegovina | BlueRock Diamonds* (BRD LN) – 12.1 carat diamond from Kareevlei diamond mine valued at over US$100,000 | Gem Diamonds (GEMD LN) – 233 carat diamond recovered from Letšeng | Bluejay Mining* (JAY LN) – Greenland extends licenses and license obligations by a year | Kodal Minerals* (KOD LN) – BUY - MoU with Sinohydro to review engineering, development and financing at Bougouni | Hummingbird Resources (HUM LN) – Kouroussa acquisition completion | Highland Gold (HGM LN) – Annual guidance reiterated pointing to stronger H2/20 | Pan African Resources (PAF LN) – Trading Statement highlights impact of higher gold price Rio Tinto (RIO LN) – Oyu Tolgoi update | Savannah Resources* (SAV LN) – Disposal of Oman copper assets | Strategic Minerals* (SML LN) – Leigh Creek environmental submission
Companies: ADT BRD GEMD JAY KOD HUM PAF RIO SAV SML
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: ADT ARCM JLP POG RIO SHG SML SRES TYM
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Central Asia Metals (CAML LN) has reported Q4 2020 production with 3,365t of copper taking full year output to 13,855 in line with our forecast of 13.9kt and at the top end of guidance. Q4 lead output was 7,442t meaning 29,741t over the full year, up 2% YoY and in line with our forecast of 30kt while zinc output of 5,848t took full year output to 23,815t again in line with our forecast of 24kt and up 2% YoY despite the disruption at Sasa which CAML has overcome rapidly as we expected.
Companies: Central Asia Metals Plc
Jubilee put out an intraday press release yesterday updating on the performance in the first half (ending Dec 2020) of the FY 2021. Once again Jubilee delivers; significantly increased revenues and profits from its chrome and PGM division in South Africa and a small, but important, contribution from Zambia. Notably this improvement isn't just from commodity price performance; rather increased production, productivity, throughput, renegotiated contracts and all set alongside the strong performance of commodity prices –rhodium, palladium and platinum. We see this as still only the start for Jubilee as we look forward to the first copper oxide concentrates from the Roan project in Zambia to the Sable Refinery – where the Roan plant is currently under construction. Once again we are struck by the speed at which Jubilee moves to advance its projects and, with its South African cash engine showing no signs of slowing down. Jubilee can choose to move its wider ambitions in Zambia forward from internally generated cash flow. On the back of the strong performance we put our forecasts under review.
Companies: Jubilee Metals Group PLC
Anglesey Mining (AYM LN) – Mineral resources and PEA for Parys Mountain
Castillo Copper (CCZ LN) – Further assay results from drilling at the Big One project in Queensland
Central Asia Metals (CAML LN) – Stable production reported in 2020 with final dividend to be announced in March
IronRidge Resources* (IRR LN) – Sale of non-core gold project
Keras Resources* (KRS LN) – Keras increase stake in the Daiamond Creek organic phosphate mine to 51%
Power Metal Resources* (POW LN) – Molopo Farms drilling highlights nickel and PGM potential
Tertiary Minerals* (TYM LN) – Progress of Nevada exploration
Companies: POW AYM CAML KRS TYM CCZ IRR
Bahamas Petroleum Company (BPC LN)C; Target Price: 6.70p: Funding update – BPC has exercised a put option to raise £3.75 mm priced at 2p per share.
PetroTal (PTAL LN/TAL CN)C: Target Price increased from £0.45 to £0.50: US$100 mm bond to accelerate activities and grow production - PetroTal is launching a bond issue to raise US$100 mm. This would allow the firm to accelerate drilling and development activities at Bretana (~US$40 mm), clean up its balance sheet, put in place a hedging programme and allow the firm to consider regional acquisitions. Assuming the extra funding is put in place, we are increasing our capex programme for 2021 from US$40 mm to US$90 mm. We are also increasing our production forecast for 2021 from ~11 mbbl/d to ~15 mbbl/d that we maintain broadly flat in 2023 as we assume PetroTal will drill additional wells before production starts to decline from 2024. We note that the 3P case only assumes five additional wells (~US$70 mm) compared to the 2P case. With more production, we are now forecasting operating cashflow of ~US$170 mm in 2022 and ~US$155 mm in 2023. We are also increasing our Core NAV from £0.43 per share to £0.52 per share. The additional funding would also allow the company to drill exploration wells such as the 70 mmbbl Constitucion prospect (£0.40 per share Unrisked).
Pharos Energy (PHAR LN)C; Increasing our target price from £0.35 to £0.40 per share on reserves uplift – The highlight of Pharos’ operational update is the ~40% increase in 2P reserves in Egypt expected as at YE20 (YE19 28.5 mmbbl). This reflects improved waterflood performance based on recent field data, and a new drilling and workover plan for 2021 onwards. Drilling is expected to recommence in Vietnam in 3Q21, a quarter earlier than previously announced. We have increased our target price from £0.35 per share to £0.40 per share to factor in the expected increase in reserves in Egypt. We estimate the value of Pharos based on Vietnam only at £0.23-0.27 per share. This is 15-35% above the current share price. Securing a partner to fund a development programme with four rigs in Egypt would increase the value of the ~ 40 mmbbl 2P reserves in Eqypt and unlock the contingent and 108 mmbbl prospective resources. Our incremental unrisked value for the four rig programme is £0.17-0.19 per share (~85% upside to the current share price). Successfully negotiating new terms with EGPC could lead to an improvement of up to US$6/bbl in the breakeven price. We have previously estimated that securing similar terms to TransGlobe would boost our Core NAV by £0.10-0.12 per share and ReNAV by £0.13-0.15 per share. TransGlobe Energy’s share price has tripled since the new terms on its licences were announced.
Tethys Oil (TETY SS)C; Target Price: SEK75.00: Production update in Oman – Production at Block 3&4 in December was 11,481 bbl/d.
Vaalco Energy (EGY LN/US)C; Target Price: £4.00: Initiating Coverage - VAALCO is a US and UK listed ~£75 mm market cap, ~10 mbbl/d oil producer (pro-forma) with West African assets. VAALCO has an excellent track record as an operator having grown a 30 mmbbl discovery in Gabon to a field that has produced >118 mmbbl so far with an additional 37 mmbbl remaining 2P reserves plus ~80 mmbbl upside at YE19. The shares have suffered in the past from (1) a lack of materiality as VAALCO held only ~31% of its main asset, with G&A viewed as representing a disproportionate amount of cash flow and (2) lack of visibility on how the significant amount of cash on the balance sheet would be deployed. The US$44 mm acquisition of an additional ~28% WI in Etame announced in November, thereby almost doubling production, reserves and resources overnight, has addressed these issues. The story is now about continuing to grow reserves at the producing Gabonese field and to replicate this success elsewhere. With estimated net cash of >US$25 mm at the end of 1Q21, VAALCO’ s shares trade at less than half our 2P NAV of ~£2.70 per share. The current share price discounts an EV/DACF multiple of 1.2x in 2021. Low risk infill drilling of contingent resources could add ~£0.45 per share (30% of share price) with an overall unrisked value for the upside at the producing asset of £4.80 per share (~4x the current share price). Finalizing the farm out of its asset in Equatorial Guinea could start unlocking a further £4.20 of unrisked value. Our target price of £4.00 per share (~ our ReNAV) represents ~230% upside.
Wentworth Resources (WEN LN)C; Target Price: £0.40: >100 mmcf/d reached in December - FY20 gross production was 65.36 mmcf/d (in the middle of the 60-70 mmcf/d guidance) with ~83 mmcf/d on average during the month of December. Repairs to the MB-2 flowline were completed on 9 December, increasing the capacity of the field to over 100 mmcf/d. Production reached 103 mmcf/d for five days during that month. Gross production guidance for FY21 is 65-75 mmcf/d, below the 80 mmcf/d we were carrying as production growth is pushed back by a year. Cash on hand of ~US$18 mm is in line with our expectations. With 70 mmcf/d gross production in 2021 and almost no capex, we forecast FY21 Free Cash Flow of ~US$10 mm. With FY20 dividends of only US$3.2 mm and ~US$18 mm in cash, we believe there is scope to increase the dividend. At the current share price, the FY20 dividend represents a yield of ~6%. Even after the recent share price appreciation, the shares continue to trade at EV/DACF multiples of 2.9x in 2021 and 2.2x in 2022. This compares with 3.8x for 2020, suggesting there is room for multiple expansion given the stable nature of the business.
IN OTHER NEWS
88 Energy (88E LN/AU): Acquisition in Alaska – 88 Energy is acquiring the Umiat Oil Field, located on the North Slope of Alaska. The proceeds consist of a 4% overriding royalty interest and the assumption of the abandonment liability of two historic wells (at an estimated cost of ~US$1 mm). Umiat is an historic oil discovery, made in 1945 in shallow Brookian (Nanushuk) sandstones, located immediately adjacent to southern boundary of Project Peregrine. The Umiat-23H well was flow tested at a sustained rate of 200 bbl/d with no water in 2014. Gross 2P reserves were estimated at 123.7 mmbbl on 1 December 2015.
Equinor (EQNR NO): Farming down Argentinian offshore exploration to Shell - Equinor and YPF farm-down 30% interests in the CAN 100 block, located in the North Argentinian Basin to Shell.
Pantheon Resources (PANR LN): Dispute in East Texas and acquisition of new acreage - Kinder Morgan has filed a petition against Pantheon, seeking payment of ~US$3.35mm with respect to the early termination of a Gas Treating Agreement between Kinder Morgan and Vision Operating Company. In a separate statement, the company indicated it has acquired 100% interest in ~66,000 acres in the State of Alaska's North Slope Areawide Lease Sale. The new leases are positioned in two areas contiguous to the company’s current acreage.
Parex Resources (PXT CN): Operation update in Colombia – 4Q20 production was 46,550 boe/d compared to Parex’ guidance of 45,500-47,500 boe/d. 1Q21 production is expected to average 46,500-47,500 boe/d. The Brent/Vasconia differential is currently ~US$2/bbl. Parex estimates a cash position of US$325 mm at YE20.
Total (FP FP): Discovery in Suriname - The Keskesi East-1 well, in Block 58, encountered a total of 63 meters net pay of hydrocarbons, comprised of 58 meters net black oil, volatile oil, and gas pay in good quality Campano-Maastrichtian reservoirs, along with 5 meters of net volatile oil pay in Santonian reservoirs.
Independent Oil & Gas (IOG LN): Operating update in the UK – Phase 1 remains on schedule for First Gas in 3Q21. Drilling is expected to start in early 2Q21.
Hurricane Energy (HUR LN): Operating update in the UK North Sea - Production for the final four months of 2020 averaged 12,500 bbl/d. Current water cut is 25%. YE20 net free cash was US$106 mm, compared to US$87 mm at 30 November 2020.
Lundin Energy (LUNE SS): Resources increase in Norway – YE20 2P reserves are 670.9 mmboe (+ 39.3 mmboe versus YE19). The YE20 2C resources are 275.5 mmboe (+90.2 mmboe et YE19).
OMV (OMV AG): Trading update – 4Q20 production was 472 mboe/d including 290 mboe/d of natural gas.
FORMER SOVIET UNION
Enwell Energy (ENW LN): Operating update in the Ukraine – 4Q20 production was 4,444 boe/d. At YE20, the company held US$61 mm in cash.
Petroneft (PTR LN): Potential acquisition in Russia – Petroneft is looking to acquire an additional 40% interest in Licence 67 from Belgrave Naftogas for US$2.9 mm including US$1.2 mm in shares and the balance in cash.
MIDDLE EAST AND NORTH AFRICA
Gulf Keystone Petroleum (GKP LN): Operating update in Kurdistan – FY20 gross production at Shaikan was 36,625 bbl/d with current production of 44,000 bbl/d. As at 12 January 2021, the Company had a cash balance of US$147 mm. FY21 gross production guidance has been set at 40,000 to 44,000 bbl/d with US$15 to $20 mm net capex and US$2.5 to US$2.9/bbl opex.
ShaMaran Petroleum (SNM CN): Terms update for bonds – ShaMaran is looking to use free cash in excess of US$15 mm to buy back its Bonds in the market to satisfy the cash sweep redemption requirements.
United Oil & Gas (UOG LN): Production update in Egypt – 2H20 WI production was 2,340 boe/d in line with guidance for the period of 2,300 boe/d.
BW Energy (NEW NO): Farm-in transaction in Namibia – BW Energy is acquiring 39% WI in the Kudu offshore licence from the National Petroleum Corporation of Namibia (NAMCOR). BW will pay US$4 mm in cash and carry NAMCOR’s share of development costs until first gas. NAMCOR will also have the opportunity to acquire an additional 5% working interest post first gas.
Orca Energy (ORC.A/B CN): Update in Tanzania – FY20 sales volumes were 57.7 mmcf/d. Cash and short-term investments totalled US$103.8 mm at YE20. As at YE20 there were no current receivables due from TANESCO. The TANESCO long-term trade receivable was US$27.6 mm.
EVENTS TO WATCH NEXT WEEK
18/01/2021: Repsol (REP SM) – Trading update
19/01/2021: Genel Energy (GENL LN) – 4Q20 trading update
20/01/2021: Cairn Energy (CNE LN): Trading update
Companies: 88E BPC EQNR HUR LUNE PXT PHAR SNM TETY TETY FP EGY WEN
The revised threshold for the imposition of Supplemental Petroleum Tax (SPT) has now been implemented, with the threshold at which SPT is due increasing from US$50/bbl to US$75/bbl for the financial years 2021 and 2022. As a result, we expect Trinity to be exempt from SPT across all of its onshore licences below US$75/bbl. Using the forward WTI oil price curve as the basis for our model, we currently forecast Trinity paying no SPT during 2021 and 2022. We estimate that at the current forward price curve (2021: US$52/bbl) cUS$3.6m of SPT would have previously been payable by Trinity in 2021. As such, these SPT reforms represent a considerable boost to potential cash flow generation from Trinity's onshore licences should realisations average above US$50.01/bbl for any calendar quarter during 2021 and 2022. We update our model, increasing our price target to 32p (from 31p) a 160% premium to the current share price and reiterate our BUY recommendation.
Companies: Trinity Exploration & Production Plc
Bluejay Mining* (JAY LN) – BUY, Valuation 29.4p – Bluejay agrees jv with Rio Tinto over the Enonkoski Project in Finland
Bushveld Minerals* (BMN LN) – BUY - Valuation 37.7p – Ferro-Vanadium prices jump 11.6% in the US
Edenville Energy* (EDL LN) – Funding agreement refinanced and £900k raised
Kodal Minerals* (KOD LN) – Further progress at West African gold assets
Lucara Diamonds (LUC CN) – Karowe mine yields 341 carat diamond
Serabi Gold* (SRB LN) –Q4 production results continue modest recovery of Q3
Companies: LUC JAY BMN EDL KOD SRB
We put forward a fair value estimate to 82.8p for Pantheon Resources from “under review for an upward revision” as from 25 November 2020 and from 75p as per our initiation note dated 11 November 2020.
Companies: Pantheon Resources plc
Companies: Hurricane Energy Plc
European Metals has recently enjoyed a long overdue share price re-rating. The shares have
increased ten-fold from Covid lows in April 2020 on the back of a marked improvement in
lithium sector sentiment. EMH’s market cap is now £127m. Covid has in many ways accelerated
the push towards EVs and the low carbon agenda. Europe is now the battleground for Electric
Vehicles (“EVs”) where material sources, security of supply and the entire value chain is coming
under ever increasing scrutiny. The DFS at EMH’s Cinovec project is due for completion by the
end of 2021.The time has come for EMH and over the next 12 months we should see with more clarity how
Cinovec fits into Europe’s growing EV and battery industry. We see no other project better
placed to dovetail into the European battery market and supply battery-grade lithium at scale.
Companies: European Metals Holdings Limited
Union Jack Oil (UJO) has announced that the workover rig, associated services and equipment were mobilised to the Wressle oilfield development site during the week commencing 4 January 2021. The company, which holds a 40% economic interest in Wressle, expects that operations to enable the primary Ashover Grit reservoir to be flowed will be completed prior to the end of January 2021. With the field expected to commence production at a constrained rate of 500 bopd, UJO’s net production will be boosted by an additional 200 bopd providing valuable cash flow to the company in 2021.
Companies: Union Jack Oil Plc
Arc Minerals* (ARCM LN) – Arc Minerals extends exclusivity agreement with Anglo for a further 180 days
Cornish Metals* (CUSN CN) – Intention to float on AIM market
Greatland Gold (GGP LN) – Newcrest approves A4146m for preparatory mining work at Havieron
IronRidge Resources* (IRR LN) – Drilling defines multiple targets at Ewoyaa Lithium Project
Kenmare Resources (KMR LN) – 2020 production and 2021 guidance
Sunrise Resources (SRES LN) – Progress report on projects
Zamare Minerals* (Private) - Zamare announce agreement with First Quantum Minerals over the Ntambu exploration license in Zambia
Companies: CUSN ARCM GGP KMR SRES IRR
Oil slid by the most in three weeks as a stronger dollar and weak US economic data stoked concerns over an economic rebound.
Futures in New York tumbled 2.3% on Friday after a rally in oil earlier in the week pushed the benchmark into overbought territory. The US dollar strengthened, reducing the appeal of commodities priced in the currency. US consumer sentiment cooled more than forecast in January and other economic data such as sluggish retail sales and producer prices also portray the obstacles still facing the country as it emerges from the pandemic.
Meanwhile, President-elect Joe Biden said he will ask Congress for $1.9 trillion to fund immediate relief for the US economy that has been pummelled by the pandemic. But the large price tag and inclusion of initiatives opposed by many Republicans set up the aid package for a drawn out legislative battle.
Despite the pullback in oil futures, vaccine breakthroughs and Saudi Arabia's pledge earlier this month to deepen output cuts are expected to support prices. JPMorgan Chase & Co said a “nasty deficit” could emerge in the oil market later this year.
Meanwhile, technical indicators had been flashing warnings signs all week. The 14-day Relative Strength Index for both US and global benchmark crude futures traded above 70 this week in a sign they were overbought, though both slipped under that level Friday.
West Texas Intermediate for February delivery fell $1.21 to settle at $52.36 a barrel. Futures rose less than 1% this week.
Brent for March settlement lost $1.32 to end the session at $55.10 a barrel. The contract fell 1.6% during the week.
The market's structure has also softened. Brent's prompt timespread dipped back into contango on Friday, a bearish structure where nearby prices are cheaper than later-dated ones.
This week has seen the annual commodity index rebalancing take place -- a move that was expected to see as much as $9 billion flow into the oil market. Since it began last Friday, there has been a surge in so called trading-at-settlement volumes, an instrument often used by participants with index exposure. For Brent, average volumes over the last five days have reached a record.
Other oil-market news:
Companies: FO PRP 88E DGOC EME TRIN UOG
Further media reports that Dr Martens, the British Boot brand is planning an IPO on the LSE. It is currently owned by PE group, Permira who is expected to sell down its stake at the IPO. March 2020 YE the group had revenues of £672m and EBITDA of £184m. Deal size TBC. Upon Admission to AIM, Nightcap will acquire The London Cocktail Club Limited (the "London Cocktail Club"), which is an award winning independent operator of ten individually themed cocktail bars in nine London locations and one location in Bristol. Offer TBC Due mid Jan. HSS Hire Group, HSS.L transfer from Main to Aim. Mkt Cap c. £70m. Recently raised £52.6m. Leading supplier of tool and equipment for hire in the United Kingdom and Ireland and has provided equipment hire services in the United Kingdom for more than 60 years, primarily focusing on the B2B market. Due 14 Jan. VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering of shares on the Official List (Premium) of the Main Market of the London Stock Exchange. Due by Early Feb.
Companies: IUG CBP KAT APP RST DIS NICL BOKU CNIC HE1
Results from the 2020 soil-till sampling campaign have been reported today and are positive with widespread anomalous gold values, including the highest soil-till assay results to date, along strike to the east and west of BAM Gold for a total length of 8 kilometres. Numerous new drill targets have been identified which have the potential of being advanced into additional resources to continue the rapid growth of the BAM Gold Project. Drilling has commenced in the area to the west and has intersected similar geological lithology and mineralisation to BAM Gold.
The drilling programme for 2020-21 at the BAM Gold Deposit is progressing as planned with a total of 6,518 metres of HQ diamond core, comprising 30 drill holes, completed to date. All drill holes have successfully intersected prospective mineralised zones associated with the BAM Gold Deposit. The drill core has been logged, processed, and sent to ALS Minerals of Thunder Bay for analysis to date. Assay results are pending, with increased exploration activity in Canada, the labs are full, with assays now taking 7-8 weeks. The current funded drilling programme is expected to complete in April 2021.
Companies: Landore Resources Limited
Today's news & views, plus announcements from RIO, TSCO, WIZZ, SVS, BBOX, EMAN, POLR, BRK, BOO, THG
Companies: Rio Tinto plc