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

Metals Exploration: Q3 update lays a solid foundation for Q4 inflection point

Metals Exploration (“MTL”) has released its Q3’22 update, with gold output of 15.7koz, exceeding H&Pe despite several previously flagged operational headwinds that are largely expected to clear into Q4. As a result, quarterly free cash flow came in at US$4.1m, allowing a US$3.5m senior debt repayment. Q4 is expected to be MTL’s best quarter result for the year, with full year guidance expect to be at or slightly below the lower range (~67koz). MTL expects to have fully repaid the outstanding US$

Hybridan Small Cap Feast 14/10/22

Dish of the day Joiners: VAALCO Energy, Inc. (EGY) has been readmitted to the Main Market following a RTO. VAALCO Energy, Inc. announced the closing of the strategic combination of VAALCO and TransGlobe Energy Corporation. The combined Company will now trade on the NYSE and LSE under the ticker symbol EGY. Leavers: TransGlobe Energy Corporation has left AIM following the above RTO. What’s cooking in the IPO kitchen?** World Chess plc, a leading chess organisation, intends to join the Main Market

Metals Exploration: Q2 update shows better than expected output and cash flow despite operational challenges

Metals Exploration (“MTL”) has released its Q2’22 update, with gold output and free cash flow exceeding H&Pe despite several previously flagged operational headwinds. The Company is continuing to encounter delays in accessing the higher-grade “Stage 3” mining area due to illegal mining activity. Nonetheless, mined and processed ore grades both increased QoQ, above H&Pe, and are expected to increase further in H2. As outlined in the Q1 update, recovery rates dipped in Q2 due to suboptimal bacteri

Metals Exploration: Model update highlights strong operating FCFs and Senior Debt to be extinguished in H2’22

We update our Metals Exploration (“MTL”) model to reflect 2021 production, debt balance and the updated resource estimate. The Company has demonstrated a clear turnaround of the project, generating significant operating cash flow (FY’21: US$38.2m). We estimate MTL will extinguish its Senior Debt facility in Q3’22 which will reduce the Mezzanine interest rate to 7% from 15%, and then in-turn extinguish the Mezzanine in 2024. Once the debt has been paid off, MTL will have 2 ½ years of strong, unen

SP Angel Morning View: Markets correct on potential invasion of Ukraine

Altus Strategies* (ALS LN) – La Mancha loan refinancing Aura Energy* (AURA LN) – Inclusion in the Global X Uranium ETF KEFI Gold and Copper* (KEFI LN) – Tulu Kapi project update Kodal Minerals* (KOD LN) – Kodal prepares for development at Bougouni Metals Exploration (MTL LN) – Mineral resources estimate confirms a minimum 5 years mine life at Runruno Power Metal Resources* (POW LN) – Initial drilling complete at Haneti Sibanye-Stillwater (SSW JSE) – Sibanye Gold workers vote to strike unt

SP Angel Morning View: Copper and nickel climb on China stimulus and likely delays to US rate rises

Kavango Resources (KAV LN) – Gravity anomaly identified at KSZ project Metals Exploration (MTL LN) – Record gold production in FY21 seeing net debt down ~$21m to ~$99m OreCorp (ORR AU) – Quarterly update Rio Tinto (RIO LN) – Jadar project's future drawn into tennis row Tertiary Minerals* (TYM LN) – Broker option raises £100,000

2021 marks a record year as turnaround nears completion

Metals Exploration (“MTL”) announced its operational results for Q4’21 and FY21 as the company achieved record annual gold poured, gold sales and sales proceeds. The records tumbled as operational enhancements continue to bear fruit, notably through continuous improvements of gold recoveries, up 16% YoY to 83.7% with impressive recoveries of 89.0% in Q4’21. On the back of solid results, MTL further reduced its debt burden, down to US$98.9m at year end. Consistent performance from Runruno’s turna

Metals Exploration: 2021 marks a record year as turnaround nears completion

Metals Exploration (“MTL”) announced its operational results for Q4’21 and FY21 as the company achieved record annual gold poured, gold sales and sales proceeds. The records tumbled as operational enhancements continue to bear fruit, notably through continuous improvements of gold recoveries, up 16% YoY to 83.7% with impressive recoveries of 89.0% in Q4’21. On the back of solid results, MTL further reduced its debt burden, down to US$98.9m at year end. Consistent performance from Runruno’s turna

Jersey Oil & Gas - Delivering zero-capex barrels

Last week, JOG successfully secured its second GBA farmout, locking in a path to delivering zero-capex barrels. The surprisingly muted share price response to the farm-out leaves JOG trading at an unjustifiably large discount to our valuation. With a material fully funded development project under its belt and a clean balance sheet, JOG presents a very low-cost way to access high quality development barrels for investors and potential acquirers alike. If the threat of M&A does not narrow JOG’s v

Plexus Holdings - FY23 final results – on the road to recovery

Plexus FY23 revenue and losses were in line with expectations. As well as the further development of its licensee relationship with SLB (Schlumberger), Plexus is focussed on its re-entry into the rental of exploration wellheads from Jack-up rigs, the sale of surface production wellheads and the provision of specialised solutions and applications to operators, particularly for Plug & Abandonment (P&A) work. Plexus won a substantial c£5m special project contract during the year, which was expanded

Arrow Exploration Corp. (AIM: AXL): FY24 drilling programme: high impact & low risk

• 3Q23 production was 2,518 boe/d, near our forecast of 2,674 boe/d. • Arrow held US$12.9 mm in cash at the end of September. This is ahead of our expectations of US$6.6 mm on lower capex and opex. • Four new wells are expected to be on stream by YE23 including RCE 7, RCE-8 and two wells at Oso Pardo. • Following interpretation of the recently shot 3D seismic at Tapir, Arrow plans to drill a total of 15 wells in 2024 including five exploration wells targeting 3 material and low risk exploration

Morning Note – 29 November 2023

Morning Note – 28 November 2023

Alien Metals - Setting the foundations for operations at the Hancock DSO project

Alien and the Iron Ore Company of Australia (IOCA), continue to lay the foundations for operations at Hancock, one of its direct shipping iron ore (DSO) projects in Western Australia. Progress made to date ensures that, should a positive investment decision be made following the conclusion of Definitive Feasibility Studies (DFS), Hancock will be in operation and generating cashflow soon after capital is invested.

Longboat Energy plc (AIM: LBE): All eyes on 2024

• With the acquisition of interests in Sygna and Statfjord Øst expected to complete in January, the process to establish a stable well-funded producing business in Norway is almost complete. FY23 production at Sygna and Statfjord Øst net to Longboat Norge is ~250 boe/d. • The acquisition of 49.9% of Longboat Norge by JAPEX in 2023 provides low cost capital and access to a strong balance sheet to develop further the Kveikje area and make acquisitions at no further dilution to Longboat plc. • With

New Debt Facility – Lowering TRR Cost of Capital

We have been roadshowing Trident Royalties all week during which time the company released an announcement that they have entered into a commitment letter with BMO and CIBC for a new $40m revolving credit facility (RCF), with the potential to increase the facility to $60m via an accordion feature. The proceeds from the $40m are going to be used to repay the existing secured debt facility of $40m with Macquire in Q1 next year.

LIBERUM: Trident Royalties: New $40m revolving facility: cheaper, more flexible, expandable to $60m

Morning Note – 1 December 2023

UK-Listed Energy Sector: Review of the UK oil and gas landscape – why the country needs it, current policy and tax

The front of this note takes a look at the UK oil and gas sector, why domestic production is advantageous, what the main political parties think, and what could happen going forward. The latter part contains a review of the companies in our coverage – some that are UK centric, which give exposure to the note’s wider theme, and others that are focused elsewhere.

Clean Power Hydrogen - Revised agreement with ATOME

CPH2 and ATOME have reached a mutual agreement to cease the previous production order made by ATOME. The CPH2 Board of Directors considers it is in the Company’s best of interests to focus its engineering and installation resources in ensuring roll out Membrane Free Electrolysers with current partners Fabrum Solutions Limited, KCA Deutag and, Northern Ireland Water. As part of the agreement, Molecular Energies has requested, and CPH2 has agreed to, a non-binding framework agreement with G-Mobili

LIBERUM: Restocking Indicator still says BUY: Equities lift too

Strong second half trading

Oil & Gas - Cavendish sector note

Jersey Oil & Gas, Serica Energy, Trinity Exploration & Production, Longboat Energy, Ithaca Energy, Neptune Energy, Pantheon Resources, Nostrum Oil & Gas, Kufpec, ORLEN.