Ariana Resources* (AAU LN) – Partial disposal of Salinbas and Zenit Madencilik | Bushveld Minerals* (BMN LN) - MIT team look to chitin for large-scale flow batteries | Eurasia Mining* (EUA LN) Suspended – Launch formal sale process under UK Takeover code | Greatland Gold (GGP LN) – Additional licence acquired in the Paterson region | KEFI Minerals * (KEFI LN) – Tulu Kapi project finance update | Metals Exploration (MTL LN) – Update on operations and AIM Suspension | Rambler Metals* (RMM LN) – Progress report on financing | Richland Resources (RLD LN) – Suspension | SolGold* (SOLG LN) – Offer for Cornerstone | Versarien* (VRS LN) – Innovate fund extends £5m to Versarien
Companies: AAU bmn EUA GGP KEFI MTL RMM RLD SOLG VRS
Ferro Alloy Resources (FAR LN)– Vanadium pentoxide production rises in Q1 despite COVID-19 shutdown | Metals Exploration (MTL LN) – Quarterly update | Orosur Mining (OMI LN)– Orosur appoints mining analyst as new non-executive director | Rainbow Rare Earths* (RBW LN) – Work continues at the Gakara mine in Burundi with maiden JORC Resource due within weeks | Petra Diamonds (PDL LN) – Partial reopening of S African operations and update on financial restructuring | Tekcapital Plc* (TEK LN) – New funds raised £925,000 (US$1.15m) at 10p/s
Companies: FAR MTL OMI RBW PDL TEK
Nokia joins partnership to improve mining communications in underground mining operations | Aura Energy* - (AURA LN) – Further issue of shares | Erris Resources (ERIS LN) –Targets identified at Scottish gold project | European Metal Holdings (EMH LN) – CEZ investment completed | Metals Exploration (MTL LN) SUSPENDED – Updated mineral reserve | Phoenix Copper* (PXC LN) – Second phase of drilling at Red Star | Sunstone Metals (STM AU) – Placing for A$1.73m
Companies: AURA ERIS EMH MTL
Bushveld Minerals* (BMN LN) – Agreement with redT energy plc to supply electrolyte for Vanadium Redox Flow Batteries | Aura Energy* (AURA LN) – Issue of shares | Greatland Gold (GGP LN) –Havieron project update | Metals Exploration (MTL LN) – Unable to extend the Standstill Agreement, stock suspended | Oriole Resources (ORR LN) – Thani Stratex Djibouti | Orosur Mining* (OMI LN) – Orosur receives US$0.5m from Newmont as part of Anzá project earn-in agreement
Companies: bmn AURA GGP MTL ORR OMI
Arc Minerals (ARCM LN) – Strong Buy – Long intercept of copper at Cheyeza raises prospect of much larger resource | Aura Energy* (AURA LN) – Quarterly Report | Metals Exploration (MTL LN) – Sale of senior loan facility completed | Vast Resources* (VAST LN) – $7.1 Atlas tranche completed
Companies: ARCM AURA MTL VAST
AMRYT PHARMA PLC— a biopharmaceutical company focused on developing and delivering innovative new treatments to help improve the lives of patients with rare or orphan diseases have raised $60m before expenses and will relist on the AIM Market on the 25/09/2019
Companies: STEM CGH KAT CCT SEY MTL AGL ARS AFHP SEN
Altus Strategies* (ALS LN) – Gold/copper exploration license secured in norther Ethiopia | Beowulf Mining* (BEM LN) – Drilling shows extension of higher-grade graphite zone at at Aitolampi graphite in Finland | Chaarat Gold* (CGH LN) BUY – 42p – Fundraise update | Metals Exploration (MTL LN) – Lenders to extend their standstill agreement | Sunrise Resources Plc (SRES LN) – CS Project well received at inaugural NPA meeting
Companies: ALS BEM CGH MTL SRES
Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer to raise £61.6m at 200p with market cap of £185m, expected 29 April 2019. SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019.
Companies: BXP MTL SYS DNL IXI PTR BIOM STX RTC TRAF
African Battery Metals (ABM LN) – Investment and Option Agreement with Katoro Gold | Alara Resources (AUQ AU) – €60m investment agreement with Al Hadeetha Resources | BlueRock Diamonds* (BRD LN) – Permission for continuous operations | GCM Resources (GCM LN) – second joint venture with Power Construction Corp of China | Metals Exploration (MTL LN) – Nomad resigns | Ormonde Mining* (ORM LN) – Brookfield to buy out Oaktree in effort to rival private equity giant, Blackstone
Companies: POW GCM MTL ORM BRD
Aston Bay Holdings* (BAY CN) – Elaine Ellingham appointed to Advisory board | Cradle Arc Plc* (CRA LN) – Provisional judicial manager recommends full judicial management in Botswana High Court | Metals Exploration (MTL LN) – Operations review results | Phoenix Global Mining* (PGM LN) – Increasing its land position at Empire | Rio Tinto (RIO LN) – Iron ore dominates 2018 earnings but copper recovers strongly
Companies: BAY CRA MTL PXC RIO
Central Asia Metals (CAML LN) – Consolidation of Debt | KEFI Minerals* (KEFI LN) – Tulu Kapi update | Metals Exploration (MTL LN) – CEO appointment | Solgold* (SOLG LN) – Discovery of copper/gold mineralisation at Porvenir
Companies: CAML KEFI MTL SOLG
Altus Strategies* (ALS LN) – Q3 operations update | Atalaya Mining (ATYM LN) – Improved production guidance as operational improvements feed through | Bluejay Mining* (JAY LN) STRONG BUY - Target Price 45p – Dundas project update | BlueRock Diamonds* (BRD LN) – Higher grades at KV1 diamond pipe | Metals Exploration (MTL LN) – $6.6m working capital facility agreed with major shareholders | IronRidge Resources * (IRR LN) - £5.4m raised towards development of gold and high-grade lithium portfolio
Companies: ALS ATYM JAY MTL IRR BRD
Beowulf Mining* (BEM LN) – Exploration investment in Kosovo | Caledon Mining (CMCL LN) – Blanket Mine continues without interruption despite Central Bank dollar shortage causing closure of gold mines - Caledonia increase stake by 15% to 64% of the Blanket Gold Mine | Kefi Minerals* (KEFI LN) – Ethiopian exploration permits to be expanded seven-fold on Tulu Kapi construction start | Metals Exploration (MTL LN) – Bankers agree to waiver capital payments of US$35.64m till end January | Randgold Resources (RRS LN) – Quarterly production underpinned by record output at Kibali
Companies: BEM CMCL KEFI MTL RRS
BHP (BLT LN) 1599p, mkt cap £92.8bn – Special dividend and off-market buy-back | Golden Star Resources (GSC CN) C$4.6, Mkt Cap C$505m – Wassa underground contributes to Q3 results | Ilika (IKA LN) 18p Mkt. Cap. £18m – Ilika improves Bluetooth battery performance | KEFI Minerals* (KEFI LN) 1.5p, Mkt Cap £8.0m – Saudi Arabia exploration licenses renewal | Metals Exploration (MTL LN) 1.4p, Mkt Cap £29m – Typhoon Rosita update | Randgold Resources (RRS LN) 6180p, Mkt Cap £5.84bn – Merger receives SA Competition Tribunal approval | Barrick Gold (ABX US) US$12.55, Mkt Cap US$14.7bn | RioZim – closes three mines in Zimbabwe due to shortage of US dollars
Companies: BHP GSC IKA KEFI MTL RRS ABX
Cradle Arc—holding company of a group of companies focused on the exploration and development of precious and base metals projects in Africa. Offer raising £2.4m with market cap of £20.25m. Expected 10 Jan 2018
Volex VLX.L—The global provider of cable assemblies is proposing to move from the main market to AIM on 19 January. £75m market cap. FYMar18E rev £241.5m and £7.19m PBT.
OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.
Companies: RRC AVO APH ITM LOGP EQT MTL PGD
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A number of REITs have the ability to thrive in current market conditions and thereafter. Not only do they hold assets that will remain in strong demand, but they have focus and transparency. The leases and underlying rents are structured in a manner to provide long visibility, growth and security. Hardman & Co defined an investment universe of REITs that we considered provided security and “safer harbours”. We introduced this universe with our report published in March 2019: “Secure income” REITs – Safe Harbour Available. Here, we take forward the investment case and story. We point to six REITs, in particular, where we believe the risk/reward is the most attractive.
Companies: AGY ARBB ARIX BUR CMH CLIG DNL HAYD NSF PCA PIN PXC PHP RE/ RECI SCE SHED VTA
Companies: Hurricane Energy
U.S. futures and European stocks dropped on Friday as investors mulled a reported conflict among policy makers over a stimulus package for the single-currency region, as well as political upheaval in France.
The Stoxx 600 Index fell after Bloomberg News reported the European Central Bank is facing a potential rift over how much their emergency bond-purchase program should stay weighted toward weaker countries such as Italy. The euro fluctuated following French President Emmanuel Macron's decision to name a new prime minister after asking his government to resign. Rolls-Royce Holdings Plc slumped after the British jet-engine maker said its exploring options to raise funds to strengthen its balance sheet.
The dollar was slightly down, posting its first weekly drop in a month, while American cash equity and bond markets were shut for Independence Day. President Donald Trump will attend an early July 4 celebration at Mount Rushmore with thousands of guests who won't be required to wear masks, while his U.K. counterpart Boris Johnson urged Britons to act responsibly as pubs prepare to re-open and the government lifts quarantine rules on travel for 60 countries.
The friction at the ECB highlights the risk to markets should promised stimulus measures fall short. Investors continue to weigh policy support and upbeat economic data against relentless new outbreaks of the virus. U.S payrolls figures Thursday fuelled optimism of a V-shaped recovery in the world's biggest economy, even as Florida reported that infections and hospitalizations jumped the most yet, and Houston had a surge in intensive-care patients. Emerging-market stocks posted the biggest weekly gain in a month.
Elsewhere, crude oil dipped but remained on track for a weekly gain.
Companies: TGL JSE IAE ADME BP/ DGOC ENOG NTQ NTOG PMO RBD ROSE RDSA UKOG TRIN
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
Companies: Jubilee Platinum
Acquisitions and creditors update
Companies: Premier Oil
Over the last 18 months, Powerhouse has cemented its relationship with Peel Environmental, which is targeting the development of at least 30 distributed modular generation (DMG) plants across the UK. Each of these will potentially generate £0.5m in annual licence fees for Powerhouse. This roll-out is conditional on shareholders approving the proposed acquisition of former development partner Waste2Tricity (W2T) at the general meeting on 14 July
Companies: Powerhouse Energy Group
Considering the environment, this sale is positive and marks the completion of the $15bn divestment programme started after the acquisition of the shale assets from BHP in 2018. Overall, BP’s strategy in downstream is to bring stable earnings, to offset volatility in upstream. In this regard, expanding renewables activities would seem appropriate to BP. While, BP has no competitive advantage in this field, exposure to renewables will allow the oil majors to keep their oil & gas activities.
Companies: BP Plc
Enteq Upstream PLC (LON:NTQ) has released full-year (FY) results for the year-end March 2020 with commentary on the ongoing trading environment. The company reported revenues of around US$10.9mln, underlying adjusted EBITDA (earnings before tax interest depreciation and amortisation) of US$3.1mln,
Companies: Enteq Upstream
Rockfire Resources, the gold and copper exploration junior with projects in northern Queensland has recently commenced a major £0.8m drilling programme on Plateau, its most advanced project. Drilling is likely to be followed by a resource update in late 2020 and a scoping study in Q1 2021. We believe that the updated resource estimate could be commercially significant. This reflects the promising drilling results post July 2019’s resource assessment and the potential for the drilling programme to expand the resource base given the analogous Mt Wright mine geology 47 km to the NE. The new drilling programme will include diamond drilling for the first time which will enable deeper higher-grade targets to be targeted. The drilling programme has been underpinned by the recently announced £1m raise. We believe the scope for positive news flow in the coming months is excellent while the gold market backdrop should be supportive for gold exploration as well as production plays over the balance of 2020.
Companies: Rockfire Resources
The market should be in no doubt that Pure Gold will deliver first gold before the end of the year before ramping up to 66koz in 2021 through to 125koz in 2025 (the company is already looking at ways it can accelerate the ramp up). All critical path items are on track with long lead equipment on order, all license applications expected to be approved by Q2, and mine sequencing being planned. Management are already planning on how they might ramp up quicker, improving flexibility in the system with a new decline and tweaking metallurgical recoveries. Perhaps most importantly they are growing their knowledge of the geology with the team putting together a drill programme to start next year once in production. This will target extensions to the 1Moz, 9g/t reserve (will be the 17th highest grade mine in the world when in production) down dip, at satellite deposits and, most excitingly, at Zone 8 where there is already a 0.5Mt resource grading 21g/t.
Companies: Pure Gold Mining
AFC Energy is a global leader in the fuel cell sector. It has a proven fuel cell technology which it is commercialising through its H-Power™ product, an off-grid electric vehicle charging system which is run on hydrogen and produces no emissions. The company's core fuel cell technology is a liquid alkaline fuel cell called HydroX-Cell(L)™. The company is also developing a solid alkaline fuel cell called HydroX-Cell(S)™ , the critical component of which is a is a solid electrolyte which upon validation will be marketed under the AlkaMem™ trademark. We expect the AlkaMem™ product to have multiple electro-chemical applications outside of fuel cells. The purpose of this note is to compare AFC Energy's products, markets and business strategy against its listed peers Ceres Power and ITM Power. The note also assesses the state and outlook of the hydrogen market in addition to the proton exchange membrane market, which is relevant for AFC Energy's AlkaMem™ product. As a reminder, we believe AFC Energy has a fair value of 27p/sh.
Companies: AFC AFC AFC
In this note, we analyze the indebtedness of 35 international E&Ps publicly listed in the UK, Canada, Norway, Sweden and the USA. For each company, we look at (1) cash position, (2) level and nature of debt (including covenants), (3) debt service and principal repayment framework and (4) Brent price required from April to YE20 to meet all the obligations and keep cash positions intact. We also estimate YE20 cash if Brent were to average US$20/bbl from April to YE20. While the oil demand and oil price collapse are of unprecedented historical proportions and the opportunities to cut costs much more limited than in 2014, most companies (with a few exceptions) entered the crisis in much better position than six years ago, with stronger balance sheets and often already extended debt maturities. In addition, this time around, many E&Ps have already been deleveraging for 1-2 years and are not caught in the middle of large developments that cannot be halted. The previous crisis also showed that debt providers could relax debt covenants for a certain period as long as interest and principal repayment obligations were met. This implies that as long as operations are not interrupted and counterparties keep paying their bills (Kurdistan), the storm can be weathered by most for a few quarters.
With (1) Brent price of about US$50/bbl in 1Q20, (2) reduced capex programmes, (3) material hedging programmes covering a large proportion of FY20 production at higher prices and (4) limited principal repayments in 2020, we find that most companies can meet all their costs and obligations in 2020 at Brent prices below US$40/bbl and often below US$35/bbl) from April until YE20 and keep their cash intact, allowing them to remain solvent at much lower prices for some time. In particular, Maha Energy and SDX Energy are cash neutral at about US$20/bbl. When factoring the divestment of Uganda, Tullow needs only US$9/bbl to maintain its YE20 cash equal to YE19. Canacol Energy, Diversified Gas and Oil, Independent Oil & Gas, Orca Exploration, Serica Energy and Wentworth Resources are gas stories not really exposed to oil prices and Africa Oil has hedged 95% of its FY20 production at over US$65/bbl.
Companies: AKERBP AOI CNE CNE DGOC EGY ENOG ENQ GENL GKP GPRK GTE HUR IOG JSE KOS LUPE MAHAA OKEA ORC.B PEN PHAR PMO PTAL PXT RRE SDX SEPL TETY TGL TLW TXP WRL
InfraStrata's acquisition of the iconic Harland & Wolff (H&W) shipyards in Northern Ireland has been transformational for the group, and with a carefully planned growth strategy, there is a clear route to cash breakeven in the short term. Over the medium to long term, these facilities could support a c£400m revenue business. With the company trading at a c30% discount to its H1/20A book value and c65% to its Adj NAV, we initiate with a Buy recommendation.
Empire Metals* (EEE LN) - Munni Munni platinum group metals project acquisition work program | Erris Resources (ERIS LN) – Resumption of Loch Tay exploration | Goldstone Resources (GRL LN) – Reduced loss in 2019 | KEFI Minerals * (KEFI LN) – Tulu Kapi project finance on track for Oct/20 closure and full construction start in Q1/21 | Power Metals Resources* (POW LN) – Interim results | Vast Resources* (VAST LN) – Carlibaba licence granted
Companies: EEE ERIS GRL KEFI POW VAST
Davenport owns three perpetual mining licenses and two exploration licences covering 659km2 in the South Harz potash basin in central Germany. Davenport's experienced European-based management is now focussed on developing Europe's largest potash inventory of 5.3 billion tonnes at 10.8% K2O.
Companies: Davenport Resources Ltd