Resources

Resources equity research

Explore the latest equity research and media content for companies in the Resources sector. These stocks operate in mining, industrial metals, paper mills and forestry. Mining sectors include coal, diamonds, and gemstones/precious metals.

Resources equity research

27 Jun 17

Excellent results, increased forecasts and TP

Cropper has delivered forecast-beating results for FY2017 with 27% increases in adj. PBT to £6.6m (SSL £5.8m) and total dividend per share of 11.8p (11.0p) on adj. diluted EPS up 29% to 59.9p (48.6p). We have increased our adj. PBT forecasts to £7.2m (from £7.0m) and £7.9m (£7.5m) for FY2018 and FY2019 respectively as well as introducing a forecast of £8.9m for FY2020. On the back of the increased cash flows and given the potential upside to forecasts we raise our DCF-derived TP to 1750p (from 1500p) and keep our Add recommendation.

Companies: James Cropper

23 May 17

Site visit: bright future for ‘dividend factory’

Our site visit to Central Asia Metals (CAML) confirmed that its Kazakh operations are a cashflow and dividend ‘factory’.

Companies: Central Asia Metals

21 Jun 17

Panmure Morning Note 21-06-2017

On 20 June Ariana announced it had raised £2million by way of a placing and subscription at a price of 1.3p. We have adjusted our target price and forecasts accordingly. We retain our Buy recommendation with a new target price of 2.82p.

Companies: Ariana Resources

22 Mar 17

VSA Morning Miner

This Morning’s News | Ferrexpo (FXPO LN)

Companies: Ferrexpo

28 Jun 17

VSA Morning Miner

This Morning’s News Millennial Lithium (ML CN) Petra Diamonds (PDL LN)

Companies: Petra Diamonds

24 May 17

VSA Morning Miner

This Morning’s News Millennial Lithium (ML CN) Vedanta Resources (VED LN)

Companies: Vedanta Resources

16 Jun 17

Transformational deal as Newcrest puts a further $40m into SolGold at 41p/s

SolGold are drilling and exploring the Cascabel porphyry in Ecuador. Drilling shows km long intersections of mineralisation with impressive grades of copper and gold.

Companies: SolGold

13 Jun 17

“A week is a long time in politics …. now and then”

It was true then and is even more so now: a week is indeed a long time in politics. Now, a minority government in the UK must start Brexit negotiations, which inevitably will have become a more complicated process. This, together with interest rate decisions in the US, UK and Japan this week should point to caution among investors. Yet despite some recent declines, indices remain close to their highs. In Share News & Views we have covered Carclo, Establishment Investment Trust*, Helios*, Northbridge* PCFG* and Tricorn*.

Companies: BMS CRPR ECSC EUSP FDM PCF PPIX QRT SNX SPRP SQS TCN TRI W7L

21 Jan 15

Hybridan - Small Cap Wrap

The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.

Companies: OPM ACT ATQT EYE ERGO FFX GAL KBT OPTI REDX RDT SAR SPRP XLM

31 Mar 17

Vedanta’s jolted top-brass

Citing personal reasons, Tom Albanese (Vedanta’s CEO) has decided not to extend his contract, which was due to expire on 31 March 2017. Although he will continue to hold the position until 31 August 2017, while his replacement is being identified. Some of the news articles about Tom’s exit also mention that Cynthia Carroll left Vedanta last month. We are surprised since the company never released any official statement regarding her exit, while it did issue a press release when she joined the group back in September 2015. Although the company’s IR (after raising a clarification) did acknowledge that her departure happened in February 2017, as her contract had ended.

Companies: Vedanta Resources

23 May 17

Site visit

QuotedData’s analyst, Paul Burton, shares his impressions from his site visit to Central Asia Metals (CAML)’s Kazakh operations.

Companies: Central Asia Metals

23 Jun 17

Greatland Gold has a suite of exploration assets in Australia

Agreement with a global major: Global major gold miner, Newmont, has recently entered into an agreement with Greatland such that Newmont will have access to Greatland’s Ernest Giles gold project for a period of 6 months, and is able to apply their proprietary exploration methods (which, we understand, are ideally suited for identifying large gold systems under cover). Overall, the key point of note for investors is that this commitment from Newmont is a strong validation of the potential exploration upside in Ernest Giles. Typically, global major of this size would be unlikely to be involved in a project unless they saw potential for a large scale resource. News flow from Newmont’s results will be key to Greatland Gold shares over this 6 month period.

Companies: Greatland Gold

26 Jun 17

Thor Mining - Poised for Development

Thor Mining is an exploration and development company with an advanced tungsten/molybdenum project poised for development; and exciting lithium and tungsten exploration projects. Thor is listed on the Alternative Investment Market (AIM) in London and the Australian Stock Exchange (ASX).

Companies: Thor Mining

05 Jun 17

Petropavlovsk - Company update

23 Jun 17

Capital Network's Sam Catalano on Thor Mining

24 May 17

W Resources - Q&A interview

23 Jun 17

Capital Network's Sam Catalano on Greatland Gold

25 Nov 15

W Resources - La Parrilla Mine development approval granted

16 Jun 17

W Resources - La Parrilla Maiden JORC Reserves

09 Mar 17

W Resources - Gold and copper projects spin off and placing...

15 Jun 17

Eurasia Mining - Semenovsky Tailings Project

16 May 17

Serabi Gold - First quarter results 2017

15 Jun 17

Cadence Minerals - To acquire first interest in Cobalt with investment in Austrian Leogang Project

31 Mar 17

Serabi Gold - Results for the year ended 31 December 2016

13 Jun 17

121 Mining - Interview with SolGold

05 Jun 17

Ariana Resources - update

12 Jun 17

Solgold - Ecuador Strategy Update

15 Feb 16

Plateau Uranium - Update at 121 Mining Investment

Latest Content

WSG VNET ZIOC OPP MLVN CHRT AFC SPE HCM RENE

Small Cap Breakfast

AnimalCare—RTO of Ecuphar NV, a European animal health company. £30m raise. Ecuphar FY16 rev £68.4m, underlying EBITDA £8.9m. Due 13 July. | Angling Direct -Schedule 1 from the specialist fishing tackle retailer in the UK . Offer TBA. Expected mid July. | NEXUS Infrastructure—Offer TBA. Provider of essential infrastructure services to the UK housebuilding and commercial sectors. Expected 11 July. FYSep16 rev £135.7m. | Tatton Asset Management –Sch 1. Provider if services to FCA authorized financial advisers. Raising £10m at 156p. Secondary offer £41.6m. Due 6 July. | GYG—Intention to float by the superyacht painting, supply and maintenance company. Due 5 July. Raising £6.9m new plus vendor sale of £21.5m at 100p. Mkt Cap c. £47m. Revenue of €54.6m in FY16 and adjusted EBITDA of €6.7m. | Greencoat Renewables - Schedule 1. Targeting a portfolio of operating renewable electricity generation assets, initially investing in wind generation assets in Ireland. Offer TBC. Due Mid July. | FFI Holdings— Specialist in the provision of completion contracts to the entertainment industry for films, television, mini-series and streaming product. Raising £59m at 150p. Expected 30 June.| QUIZ— Omni-channel fast fashion womenswear Company intention to float. Due July 2017. Offer TBA | I3 Energy –Schedule 1. Independent oil and gas company with assets and operations in the UK. Offer TBC, 7 June admission. | Verditek— Sch 1 update. The Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission late June | Rockpool Acquisitions—Northern Ireland based Company seeking strong NI acquisition with an international outlook. Raising £1.5m at 10p. Due 5 July. | Hipgnosis Songs Fund investment company offering pure-play exposure to Songs and associated musical intellectual property rights. Prospectus yet to be published. | Impact Investment Trust—Exposure to a diversified portfolio of funds providing SMEs across developing economies with the growth capital they need to have a positive impact on the lives of the world's poorer populations. Raising up to $150m at $1.00 Residential Secure Income - social housing REIT raising up to £300m Admission due c.12 July. | Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus. | NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June. | Kuwait Energy— $150m raise plus vendor offer. Admission due June. 2p reserves 810.0 mmboe |Supermarket Income REIT– Up to £200m raise to acquire a diversified portfolio of supermarket real estate assets in the UK, providing long-term RPI-linked income. Due 21 July.

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29 Jun 17
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Randgold Resources SolGold

SP Angel – Morning View

Phoenix Global Mining* (PGM LN) 4.125p, Mkt Cap £9.5m – Admission to AIM | Randgold Resources (RRS LN) 6995 pence, Mkt Cap £5.98bn –Massawa feasibility timetable | SolGold* (SOLG LN) 39.5p, Mkt Cap £597.6m – Assay results from hole 23R at Cascabel

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29 Jun 17
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Petra Diamonds

VSA Morning Miner

This Morning’s News Millennial Lithium (ML CN) Petra Diamonds (PDL LN)

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28 Jun 17
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Ig Design Group James Cropper

Breakfast Today

US equities remained in a downbeat mood on Tuesday. The IMF lowered its forecast for the country’s GDP growth this year to 2.1% from 2.3% while also slashing its 2018 growth outlook to 2.1% from 2.5%, both well below the President’s 3% target. The Fund pointed to rising uncertainties regarding Trump's ability to squeeze his ambitious goals on tax reform and spending through Congress for their change. The news, later compounded with the US Senate delaying his Healthcare Bill and the spread of the second global Cyber Attack, deflated what was otherwise rather upbeat news from the Conference Board which detailed an unexpected improvement in US consumer confidence for the month of June. The S&P 500 posted its biggest drop in six weeks, but major tech stocks like Alphabet, Microsoft and Amazon once again were the worst hit, with investors pointing at heady valuations and asking, ‘what if?’ for the first time. This followed Google being slapped with a record US$2.7 billion fine by EU regulators over claims the Group favoured its own comparison-shopping service in search results. In cash terms this is not significant for Google, but that is not the point. ‘What if’ is asking whether international governments just might decide the EU has fired the ‘starting gun’ for much broader round of litigation, whereby they pick up the underfunded baton largely dropped by multiple families and private interest groups trying to link online technology and, in particular, social media, with many global woes ranging from terrorism, fraud and abuse. The extent to which such actions could stick and the size of the potential penalties imposed, of course remains to be seen but holds potential to, temporarily at least, puncture their share price ‘balloons’. In that respect, Janet Yellen’s speech at the Royal Academy yesterday evening, suggesting technological change has been harmful to many will ring a bell. Most of the other major US sectors saw only modest moves on the day, although some weakness was visible among semiconductor and utilities stocks, which reversed some of Monday’s moves. Treasuries also pushed sharply lower over the course of the day, with yields on the benchmark ten-year note up by 3.8bp at 2.188%. Other than the S&P/ASX 200, which rose on firmer mineral prices, Asia ended mostly slightly weaker this morning. Picking up the US mood, the Korean and Taiwanese benchmarks, which are weighted heavily in tech issues initially led the way, although the momentum was then picked up by the Hang Seng and Nikkei 225. Europe’s principal bourses also all moved to the downside yesterday. A speech from ECB President Mario Draghi was widely interpreted as paving the way for a scaling back of monetary stimulus, lifting the Euro to a 10-month high against the US$ and government bond yields in the process. The STOXX Europe 600 ended down 0.81%, with the FTSE MIB hit the worst as it gave back most of Monday’s gains, while the German DAX and French CAC40 Indices ended not far behind. London equities suffered less due to the FTSE-100’s heavy weightings of miners and oils, as crude oil prices rallied further and US$ weakness gave commodity stocks a welcome boost. Supermarkets also outperformed following a survey suggesting the sector achieved its strongest growth in five years. The overall mood, however, remained sombre with the consumer sentiment index tumbling to 106.9 in June, its second-lowest level since the summer of 2013, having plunged to 105.2 immediately after the UK general election. The CBI’s Distributive Trades Survey by contrast reported its retail sales balance at 12% in June, against projections of just 6%, although just 3% of respondents were forecasting an increase in sales volume for July. Joining the chorus, the BoE’s Financial Stability Report highlighted concerns that domestic consumer credit is growing too "rapidly" and, as a result, required UK lenders to increase their counter-cyclical capital buffers by 0.5% amid spiralling personal borrowings and anticipation of higher base rates. UK macro data due for release today includes Nationwide Housing Prices for June and another speech from Mark Carney at 14:30hrs BST. The EU details May Private Loans and its M3 Money Supply data, which is also followed by a speech at 14:30hrs BST, this time by the ECB President. US data scheduled includes May Wholesale Inventories and Goods Trade Balance, Pending Home sales and weekly EIA Crude Oil Stocks Change. UK corporates due to release earnings or trading updates include Bunzl (BNZL.L), Dixon Carphone (DC..L), Tullow Oil (TLW.L), Stagecoach (SGC.L), Kier Group (KIE.L) and Xafinity (XAF.L). There appears little that will brighten the mood in London’s equity market today, as traders’ focus on possible European Central Bank actions bringing forward a response from Mark Carney. The FTSE-100 is seen opening down 15 to 20 points in early business.

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28 Jun 17
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VLTY AST AMP SRES CON

Northland Capital Partners Morning Report

VELTYCO GROUP (VLTY.L) | ASCENT RESOURCES (AST.L) | AMPHION INNOVATIONS (AMP.L) | SUNRISE RESOURCES (SRES.L) | CONNEMARA MINING COMPANY (CON.L)

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28 Jun 17
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KIE PDL RECI CNS 7DIG AMP SLNG

Small Cap Breakfast

AnimalCare—RTO of Ecuphar NV, a European animal health company. £30m raise. Ecuphar FY16 rev £68.4m, underlying EBITDA £8.9m. Due 13 July.| Angling Direct -Schedule 1 from the specialist fishing tackle retailer in the UK . Offer TBA. Expected mid July. | NEXUS Infrastructure—Offer TBA. Provider of essential infrastructure services to the UK housebuilding and commercial sectors. Expected 11 July. FYSep16 rev £135.7m. | Tatton Asset Management –Sch 1. Provider if services to FCA authorized financial advisers. Raising £10m at 156p. Secondary offer £41.6m. Due 6 July. | GYG—Intention to float by the superyacht painting, supply and maintenance company. Due 5 July. Raising £6.9m new plus vendor sale of £21.5m at 100p. Mkt Cap c. £47m. Revenue of €54.6m in FY16 and adjusted EBITDA of €6.7m. | Greencoat Renewables - Schedule 1. Targeting a portfolio of operating renewable electricity generation assets, initially investing in wind generation assets in Ireland. Offer TBC. Due Mid July. | FFI Holdings— Specialist in the provision of completion contracts to the entertainment industry for films, television, mini-series and streaming product. Raising £59m at 150p. Expected 30 June. | QUIZ— Omni-channel fast fashion womenswear Company intention to float. Due July 2017. Offer TBA | Ethernity Networks—Schedule 1 from Israeli based specialist in data processing technology used in high end carrier ethernet applications across the telecom, mobile, security and data centre markets. Expected 29 June. Raising £15m at 140p. Mkt Cap £45.5m. | Jangada Mines—Sch 1 advanced stage PGM exploration project containing what the Directors understand to be the largest PGM resource, and only pre-development PGM project, in South America. Raising £2.25m. Mkt Cap £9.9m. Expected 29 June. | Phoenix Global Mining— US Brown field copper play. Expected late June. Offer TBA | I3 Energy –Schedule 1. Independent oil and gas company with assets and operations in the UK. Offer TBC, 7 June admission. | Verditek— Sch 1 update. The Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission late June | Hipgnosis Songs Fund investment company offering pure-play exposure to Songs and associated musical intellectual property rights. Prospectus yet to be published. | Impact Investment Trust—Exposure to a diversified portfolio of funds providing SMEs across developing economies with the growth capital they need to have a positive impact on the lives of the world's poorer populations. Raising up to $150m at $1.00 | Residential Secure Income - social housing REIT raising up to £300m Admission due c.12 July. | Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus. | NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June. | Kuwait Energy— $150m raise plus vendor offer. Admission due June. 2p reserves 810.0 mmboe | Supermarket Income REIT– Up to £200m raise to acquire a diversified portfolio of supermarket real estate assets in the UK, providing long-term RPI-linked income. Due 21 July.

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28 Jun 17
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KDR LND PDL

SP Angel – Morning View

Karelian Diamonds (KDR LN) – Exploration licence adjacent to Lahtojoki mining permit | Landore Resources (LND LN) – Drilling programme at Junior Lake | Petra Diamonds (PDL LN) – Flagging a shortfall in FY 2017 production guidance

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28 Jun 17
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BMS CRPR ECSC EUSP FDM PCF PPIX QRT SNX SPRP SQS TCN TRI W7L

Still making progress although some recent retreats

In the last fortnight most of the below indices have retreated, surrendering some of the gains achieved in the year to date. However, the outperformance of the various smaller companies markets compared to the leaders remains both encouraging and notable. Clearly corporate activity has continued apace. As we await some clearer indicators regarding Brexit and the state of the UK economy, we may well mark time. The seasonal lull may take over at some point. In Share News & Views we comment on Braemar Shipping*, Cropper*, EU Supply*, Lakehouse* Norcros, Sprue Aegis*, Warpaint* and Wynnstay.

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28 Jun 17
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HMI AERO OBT

Breakfast Today

"Having made a firm start during early trading, sentiment reversed as the session progressed to see the US major averages once again turn in a dull, mixed closing performance. Traders remain uncertain regarding the near-term outlook for equities after the Dow and S&P-500 touched record highs last week, only to become unnerved by a plunge in oil prices, softening macro data and rising uncertainty over future Fed policy. Weakness amongst tech majors, like Microsoft, Amazon and Alphabet, on valuation grounds was the principal feature while more defensive banking, utilities and other income-paying stocks found favour. Activity nevertheless remained subdued, as the S&P-500 and Dow Jones Industrial eventually closed all but unchanged while the Nasdaq was dragged down to finish off 0.29%. Continuing the recent run of softer economic data, new orders for US manufactured durable goods fell by more than expected in the month of May, tumbling twice as far as economists had predicted at -1.1% after having slumped by 0.9% in April. A plunge in demand for Transportation Equipment was apparently to blame, in the absence of which the figure would in fact have marginally edged up. Long-term US government bond yields closed at a new 2017 low yesterday as the latest sign of weak US business spending added to concerns over the economy's growth momentum, in the process generating demand for haven assets; the benchmark 10-year Treasury yield settled at 2.135%, down one basis point from Friday and its lowest close since 10th November. This morning's Asian trade continued the trend set overnight in the US. While the Nikkei benefitted from a US$ that firmed on hopes Fed Chair, Janet Yellen, will retain her recent hawkish stance when she speaks later today at London's Royal Academy, and the South Korean KOSPI brushed off weakness in US tech stocks to rise modestly, most of the other regional indices closed with small losses. The S&P/ASX 200 was pressurised by weakness amongst its large miners, like Rio Tinto (RIO.L) and BHP Billiton (BLT.L), while Chinese equities trading through both the Hang Seng and Shanghai Composite ran into profit taking. The major European markets all moved to the upside on Monday, after the Italian government agreed over the weekend to close two struggling lenders - Veneto Banca and Banca Popolare di Vicenza - after the European Central Bank declared on Friday evening that both faced imminent insolvency. The FTSE MIB accordingly topped the performance list, although the CAC-40 put on 0.56% and the Xetra Dax by 0.29% following stronger than expected IFO Business Climate numbers for June. Food giant, Nestlé S.A , was also a feature, rising 4.3% to an all-time closing high after billionaire activist investor Daniel Loeb's Third Point hedge fund has taken a $3.5 billion stake in the Swiss giant; spurred by the news, the Swiss SMI benchmark index rose by 0.98%. The UK's FTSE-100 index moved 0.3% higher to end at 7,446.80, boosted by its banks, consumer goods and oil companies. After talks at Downing Street with UK Prime Minister, DUP leader Arlene Foster said she was "delighted" an arrangement had been agreed; the prime minister stated the DUP and the Tories "share many values" and the agreement was "a very good one". The UK currency had, however, lost some ground earlier in the morning after data from the British Bankers' Association showed that UK mortgage approvals declined to an eight-month low in May; Sterling touched a low around USD1.2700 following the BBA data but ended at USD1.2728 at the close of the European session, hardly changed from USD1.2732 at the same time on Friday, following Theresa May's declaration . UK Macro data due for release today includes the Financial Stability Report, June CBI Distributive Trades Survey as well as a speech due from the BoE Governor, Mark Carney. The EU also has a speech due from the ECB President, Mario Draghi at 08:00hrs GMT, while the US contributes its weekly Redbook index, its April S&P/Case-Schiller Home Price Index, its API Weekly Crude Oil Stocks and its June Richmond Fed Manufacturing Index; Speeches are also scheduled from FOMC Members, Patrick Harker and Neel Kashkari, followed later by Janet Yellen. UK corporates due to release earnings or trading updates include Petrofac (PFC.L), Debenhams (DEB.L), Findel (FDL.L), Benchmark Holdings (BMK.L), IG Design Group (IGR.L), and Carpetright (CPR.L). Finding little inspiration from other global markets, Europe is likely to open in a lacklustre mood this morning, with London in particular looking to Mark Carney's 10:00hrs GMT speech to set the day's tone; in the meantime, the FTSE-100 appears set to remain somewhere between 5 and 10 points down." - Barry Gibb, Research Analyst

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