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

16 Jul 19

Small Cap Feast

Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m. Uniphar, a diversified healthcare services business with a workforce of over 2,000, is looking to join AIM. Raising EUR135m with market cap on admission of EUR309.6m, expected 17 July 2019. Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.

Companies: CALL BIRD ABC KDR EMAN BST SCE ZEG SAG FUL

16 Jul 19

Facebook to use Libra to become utility, Slack not worried about Microsoft, Symantec ends talks with Broadcom

The Senate Banking Committee on Monday released the testimony of David Marcus, the head of Facebook's cryptocurrency projects ahead of his testimony Tuesday. In his prepared remarks, Marcus perfectly outlines the business model behind the social network’s upcoming Libra digital currency and its Calibra digital wallet. Microsoft might be the primary competitor for Slack, but the widespread adoption of Microsoft's software is not a major problem for Stewart Butterfield, co-founder and CEO of the messaging app. Last week, Microsoft said Teams had more daily active users than Slack. Cybersecurity company Symantec Corp has walked away from negotiations to sell itself to chipmaker Broadcom over price disagreements, people familiar with the matter said on Monday. Symantec's decision raises new questions over the future of the US antivirus software provider, which is looking for a new CEO and has been struggling to grow its business serving companies.

Companies: KAPE AVST CNS DFX ECSC FLX IGP NCC OSI SWG SOPH

02 Jul 19

Where’s the Value?

Warren Buffett once said that as an investor, it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. Fear is not in short supply right now.

Companies: OPM ALU ANCR BLV CONN CRC FDL GATC HAT LEK MMH MCB MWE NXR NTBR NOG PAF PEG RFX SRC TEF TEG TPT VTU WYN XLM

04 Jul 19

Australian banks to digitize bank guarantees, US Gov reviewing license requests for Huawei, Broadcom to acquire Symantec

Australia's top three banks said on Thursday they have agreed to partner with IBM and shopping mall owner Scentre Group to test blockchain technology to digitize bank guarantees. The companies are exploring how to move away from paper-based bank guarantees to cut processing time and the risk of fraud, Australia and New Zealand Banking Group, Westpac Banking Corp and Commonwealth Bank of Australia said in a statement. The US government said on Wednesday it was reviewing licence requests from US companies seeking to export products to China's Huawei "Under the highest national security scrutiny" since the company is still blacklisted. In an email to Reuters, the Commerce Department said that as it reviewed applications, it was applying the "Presumption of denial" standard associated with Entity Listed companies, meaning applications are unlikely to be approved. Symantec shares surged more than 20% in extended trading on Tuesday after Bloomberg reported that Broadcom is in advanced talks to acquire the security software vendor. The deal is reported to be worth more than $16bn, implying an EV/Sales multiple of 3.40x (Bloomberg). Agreement on a deal was close but could be delayed until after the July 4 holiday, according to people briefed on the move.

Companies: KAPE AVST CNS DFX ECSC FLX IGP NCC OSI SWG SOPH TECH AMO IQE

11 Jul 19

H1 2019 Operations Update

Central Asia Metals (CAML LN) announced robust operational performance yesterday with production on track for full year targets and our estimates driven by incremental operational improvements at Sasa. Q2 2019 zinc production of 5.9kt was up 7% YoY and 4% QoQ while copper production of 3.6kt was broadly flat YoY and up 23% QoQ while lead output of 7.1kt was down 3% YoY and 1% QoQ. With H1 2019 production of 6.6kt copper, 14.4kt lead and 11.5kt zinc, CAML is on track for our full year estimates of 13.4kt, 28.9kt and 22.9kt respectively with our zinc estimate upgraded by 3%.

Companies: Central Asia Metals

11 Apr 19

Quarterly Research Outlook

We’re just over three months in to 2019 and we’ve seen a 10% UK market rally, retracing much of the Q4 decline, such is the nature of fickle market sentiment. That said, many of the issues we wrote about three months ago that were impacting markets remain: notably Brexit, trade wars, geopolitics and global monetary policy. The 2019 rally thus far feels somewhat fragile, with competing forces of optimism on a potential trade deal which could underpin the rally, against the deterioration in underlying economic data that could ultimately undermine the recent market gains. In this context, we look at what the lead indicators and the market are telling us about the industrial cycle and the stocks most exposed to various industrial trends. The Q4 derating in short cycle industrials and autos had been vicious and while these sectors have seen a more solid footing in 2019, with earnings downgrades being priced in, it will likely take a trough in lead indicators before short cycle stocks can start to perform again and re-rate relative to the market.

Companies: ARS CYAN HYR LIT SOM ABBY AMS AMER ANX ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE DTG DEMG EMR FPO FST GTLY GENL GOR GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO INDI JHD JOG KEYS KCT KGH LAM LOK MACF MNO MANO MOD MKLW OXIG PCA PANR PARK PGM PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TRAK TRI VNET VTC ZOO ZTF

02 Jul 19

LIBERUM: Sirius Minerals* - Q3 update: Financing coming together, progress at site

In its Q2 progress report Sirius reiterated its expectation for Stage 2 financing to be completed by the end of September. Once the bond offering and RCF documents are complete and the agencies have delivered a public rating, the company will be in a position to push ahead with marketing the bond.

Companies: Sirius Minerals

12 Jul 19

Small Cap Feast

ReAssure Group plc - The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market. Reinsurance giant Swiss Re has suspended plans for a £3.3bn London stock market flotation of its subsidiary ReAssure, blaming "heightened caution" among investors. Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m. Uniphar, a diversified healthcare services business with a workforce of over 2,000, is looking to join AIM. Raise TBC, expected mid-July 2019.

Companies: AAOG BOOM RENX VELA SWG SAG TRMR TSG CYAN

16 Jul 19

Refinanced and Ready to Go

2019 is proving to be a good year for Petropavlovsk: the gold price has broken US$1,400/oz and is at a c.2.5 year high in Rouble terms, the POX plant appears to be performing well, and likewise IRC (notwithstanding the product hedge recently announced). Importantly the company has rolled its convertible forward and management appear settled. The share price has reacted accordingly for one of the most leveraged gold companies in the market, rising 54.3% YTD, making it the best performing gold stock on the FTSE. Our updated model delivers an NPV 10% of US$519 million or 16p/share.

Companies: Petropavlovsk

17 Jul 19

Kalaba increasingly looking like a significant cobalt, copper discovery

ARC Minerals holds an effective 71.34% of Zamsort in Zambia and 99% of Casa which owns ~73% of the Akyanga Project in the DRC. Zamsort has a portfolio of coppercobalt prospects close to FQM’s new Trident mine on the Copperbelt in Zambia. The Cheyeza project is 66% owned by Arc Minerals through its holding in Zamsort.

Companies: Arc Minerals

09 Jan 19

Arden Research best ideas 2019

We present our best research ideas for 2019 in this report seeking to provide investors with some value opportunities highlighting stocks that we believe warrant investor attention, regardless of near-term market direction. These stocks, in general, represent attractive and well-managed businesses or assets, with share price catalysts and where valuations or recent stock performance provide investors with a good entry point.

Companies: ANX ARS CALL HUR JHD JOG KCT MACF RBGP SOLG VNET

17 Jan 19

Small Cap Feast

Circassia Pharma (CIR.L) - specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019.

Companies: ORCP IOF FOX TEG XLM TRMR FST SNG ARE SRB

31 Jan 19

Quarterly Research Outlook

The market has not faced quite so many conflicting challenges for a number of years, whether related to global geopolitics, trade wars, ongoing Eurozone issues or the “will they, won’t they” saga of Brexit. In our Best Ideas, we sought to highlight stocks that present investors with interesting opportunities following recent market moves. Those stocks, we believe, warrant investor attention, in many cases for uncorrelated or stockspecific reasons, regardless of the near-to-medium term market direction. These stocks, in general, represent attractive and well-managed businesses or assets, with share price catalysts and where valuations or recent stock performance provide investors with a good entry point.

Companies: 7DIG ABBY AMS ANX ARS ATYM AVON BLVN PIER CGS CAML CALL CSRT TIDE DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KEYS KCT KGH LAM MACF MOD MKLW OXIG PCA PARK PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TWD TRAK TRI VNET VTC ZTF

26 Feb 19

Share & share alike

We have seen a continuation of the rally evident so far this year. The factors are familiar with greater optimism regarding US-China trade talks. At home, the path to Brexit remains unclear as D-day looms. The possibility of a delay has increased. The company reporting season continues to highlight winners and losers with the majority of results in line. We have also seen an uptick in corporate M&A. Results set the morning agenda and Brexit votes the evening one. In Share News & Views we comment on AorTech International*, APC Technology*, DeepMatter*, Golden Ocean Group and P&O Ferries/DP World.

Companies: AOR APC BONH BMS CTG CRPR DMTR ESC EUSP FDM FA/ LSAI NKTN PCF SNX TCN VRE W7L

19 Mar 19

Despite lower profits, dividend ‘payout’ was healthy

While Antofagasta’s 2018 profitability came under immense pressure, its copper production hit a record-high while efficiency measures over delivered by >80%. As a result, dividends weren’t slashed in proportion to profitability erosion. 2019 performance should improve on the back of healthier volumes, more cost controls and somewhat better prices. However, the near-term global copper markets are likely to remain volatile and, hence, further material upside on Antofagasta (after +20% ytd returns) – despite its inherent strengths – should be limited.

Companies: Antofagasta

10 Jul 19

Kefi Minerals - Q2 2019 Operational Update

20 Jun 19

Serabi Gold plc - Final drill results from the Coringa project before the Preliminary Economic Assessment

08 Jul 19

Greatland Gold plc - Update on Exploration Campaign at Panorama Project

10 Jun 19

SolGold - Update from 121 Mining, New York

26 Jun 19

Kodal Minerals - Drilling Programme Commences

07 Jun 19

Ariana Resources PLC - Salinbas update

25 Jun 19

Executive interview - Alkane Resources

07 Jun 19

Cadence Minerals - Acquisition of Amapá iron ore mine

cadence-minerals-acquisition-of-amap-iron-ore-mine-07-06-2019

15 Apr 15

Overview of the business with CEO Aidar Assaubayev

05 Jun 19

Eurasia Mining - 121 Conference Highlights

11 Jun 19

Executive interview - MOD Resources

04 Jun 19

Horizonte Minerals - High Purity Cobalt & Nickel Sulphate From Vermelho

18 Apr 19

Capital Network analyst on Oriole Resources as it refocuses on Africa

04 Jun 19

Kodal Minerals - Update on Development and Exploration Activities

15 Feb 19

121 Mining, Cape Town - Cora Gold - Presentation

Latest Content

Tristel Tri-Star Resources

Morning Note – 22 July 2019

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22 Jul 19
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CORA HGM SOLG INHC MATD MTPH DPP GWI VANL PEN

Small Cap Feast

Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m. Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.

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19 Jul 19
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SSAB

Q2 19: down a tick more than expected

SSAB’s Q2 results were decent, albeit lower than expectations Iron-ore prices and a weakening European demand were the key factors The Q3 outlook is rather cautious Valuation ratios look rather cheap, but investors will be happy to wait until visibility improves

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19 Jul 19
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BRD CORA HGM SOLG

SP Angel – Morning View

BlueRock Diamonds* (BRD LN) – 12.2ct diamond sold for US$105,000 | Cora Gold* (CORA LN) – Drilling returns good grades in the sulphide mineralisation at Selin | Highland Gold (HGM LN) – Q2 production update | Solgold* (SOLG LN) – Expanding the drilling fleet to expedite the PFS

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19 Jul 19
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ARCM AAU ARS BHP KRS POG PREM

SP Angel – Morning View

Arc Minerals* (ARCM LN) – STRONG BUY – High-grade copper seen in next two drill holes at Cheyeza East | Ariana Resources (AAU LN) – Kiziltepe Q2 Production | Asiamet Resources (ARS LN) – BKM Environmental Permit | BHP (BHP LN) – Annual Production report | Keras Resources* (KRS LN) – BUY, Valuation 1.04p – Keras is awarded 265m Calidus shares as Warrawoona PFS is published | Petropavlovsk (POG LN) – Major shareholder shuffle | Premier African Minerals* (PREM LN) – RHA re-commissioning progress report

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18 Jul 19
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SIM EYE FOX SDI KETL AEO YNGA SGZ OCI KDR

Small Cap Feast

Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m. Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year. Freyherr International Group PLC the Medicinal Cannabis holding company established in 2016, is planning to list on the NEX exchange on the 30th July

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18 Jul 19
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CEY EDL PEK RIO SHG TYM

SP Angel – Morning View

Centamin (CEY LN) – Q2 Production and exploration update | Edenville Energy* (EDL LN) – Start of mining operations at the Northern Area to drive coal run rates up | Peak Resources (PEK AU) – Rare earth market update | Rio Tinto (RIO LN) – Oyu Tolgoi schedule delayed for additional technical studies | Shanta Gold (SHG LN) – Q2 Production keeps Shanta on track to achieve 2019 production guidance | Tertiary Minerals* (TYM LN) – Sale of shares in Sunrise Resources

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18 Jul 19
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Karelian Diamond Resources

Positive Momentum to be Sustained?

Karelian Diamond Resources, which is developing the EU’s first diamond mine in Finland, has gained 82% since our latest note, published May 30, 2019, and recent encouraging news flow suggests to us that the positive momentum in the share price may be sustained.

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18 Jul 19
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Arc Minerals

Kalaba increasingly looking like a significant cobalt, copper discovery

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17 Jul 19
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Ironveld

High-grade vanadium in South Africa

Ironveld offers exposure to one of the world’s highest-grade undeveloped vanadium resources. Ironveld was initially conceived to focus on developing an iron project using electric arc smelting technology, based on a substantial resource of vanadium and titanium bearing magnetite (VTM) within South Africa’s Bushveld Complex. However, the market for iron has entered a soft period and with the present electrical power issues in South Africa, other business models have become more attractive. The project includes a shallow mineralised resource of 56.4 million tonnes of ore grading 1.12% V2O5; this is approximately twice the grade of other vanadium resources that are currently being mined and processed within the Bushveld Complex.

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