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

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$3.5m senior debt repayment. Q4 is expected to be MTL’s best quarter result for the year, with full year guidance expect to be at or slightly below the lower range (~67koz). MTL expects to have fully repaid the outstanding US$

Jubilee Metals - Operational Update Q3 FY2024

Jubilee today reports its Q3 and third quarter operational results from its expanding operations in Zambia (copper) and South Africa (chrome and PGM). South Africa is on a growth trajectory with record chrome production of 409kt in the quarter (Q2 FY2024 381kt) and a monthly record in March of 145kt and production YTD of 1.13Mt (0.94Mt). Jubilee is well underway to its annual target capacity of 2,1Mt/yr especially with the new 300kt/yr chrome plant at Thutse expected to be operational in August

Trinity Exploration and Production - Reserves Reduction but Solid Core Business

Trinity has announced a c28% reduction to its 2P reserves following a YE23 review. Despite the decrease in the Company’s 2P reserves, Trinity’s core business remains robust, with a reserves/production ratio of >12.5 years at YE23. Whilst there is significant potential for growth within the current portfolio, this will be difficult to unlock from the current balance sheet and we believe further financing will be required. We update our target price to 76p (from 202p), a c85% premium to the curren

Morning Note – 16 April 2024

Valeura Energy (TSX: VLE): Three exploration wells deliver three discoveries

• The Nong Yao-13 exploration well in the new Nong Yao D area that was targeting multiple zones has encountered >30 feet of new oil play across several new shallow intervals which have not been produced elsewhere on the concession. These reservoirs are believed to be recurring across the Nong Yao D area. • The drilling result confirms that oil has successfully migrated into this area of the block (a factor that was seen to be a risk in the Nong Yao D area) and open the opportunity for further a

I3 Energy (I3E LN) - Canada royalty assets sale

I3 has announced the sale of the majority of its royalty interests in Canada, for US$24.8m cash. This allows the company to fully repay amounts drawn on its debt facility and create a working capital surplus, giving I3 significant additional funding flexibility going forward

NextSource Materials - Initiation

NextSource is uniquely positioned to build a leading vertically integrated position, ex China, in the supply of Lithium-ion battery anode material which is essential for the Energy Transition. The company is commissioning phase 1 of its world-class Molo graphite mine in Madagascar and is in the final permitting process for its first Battery Anode Facility (BAF) to be located in Mauritius. The company is backed by Vision Blue, established by Sir Mick Davis, former CEO of Xstrata. On our calculat

Morning Note – 15 April 2024

DEC FY23 Results Update

DEC reported FY23 results which were in line with expectations and announced the acquisition of joint venture assets from Oaktree along with an updated capital allocation framework.

Oil & Gas - Cavendish sector note

Chariot, Energean, Touchstone Exploration, Longboat Energy, Hartshead Resources, BP, Helix Exploration, PetroTal, Pantheon Resources, Caspian Sunrise, Petrofac, DNO ASA, Valeura Energy, Aker BP, Var Energi Source: FactSet, weekly change 08/04/24-12/04/24 Oil rose as Israel braced for a possible attack from Iran, a development that would threaten major disruptions in a region that accounts for a third of the world’s crude output. An assault is expected to come as soon as the next 48 hours, which

Union Jack Oil (UJO LN) - Wressle update

Union Jack has released an update on its Wressle asset, reporting maturing production from Wressle-1, alongside progress for significant further development activities on the field going forward.

SP Angel . Morning View . Copper prices hold higher as China processing fees fall below $0/t amid low feedstock availability

PROGRESSIVE: Pharos Energy: Delivering on operations and balance sheet

Pharos Energy reported FY23 results on 27 March. Group net production of 6,508 boepd (FY22: 7,166 boepd) was in line with guidance, assisted by successful development drilling in Vietnam and exploration successes in Egypt. Pharos’s strong cash generation resulted in a stronger balance sheet, with net debt reduced to US$6.6m (from US$28.9m at the end of 2022) and cash balances totalling US$32.6m. This left the group free to return more cash to shareholders, including a 10% increase in dividends,

Union Jack Oil+ (UJO, House Stock at 23p) - Wressle update

Hunting (HTG LN) - Q1 2024 trading update

Hunting has released its Q1 trading statement, reporting a strong period for OCTG and Subsea, steady growth in Advanced Manufacturing, and a softening in Perforating Systems.

Union Jack Oil* (UJO LN) - Wressle update and dividend plans

Union Jack announced an operational update on its onshore UK Wressle field and confirmed plans to announce the payment of a cash dividend to shareholders along with the FY23 results in May. Wressle continues to deliver material revenues to the Company, generating positive cash flow and providing it with sufficient cash resources to fund shareholder returns and invest in new development projects.