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

12 Sep 18

Share & share alike

Here we go again – the company reporting season is gathering pace. The MPC is likely to leave rates unchanged although expectations still remain for an increase next year. The UK economy expanded at a faster pace in July helped by the weather and better retail sales. General sentiment continues to be impacted by tariff concerns, combined with Brexit uncertainty. As Table 1 shows, all major indices have fallen over the last month. In Share News & Views, we comment on AorTech*, Bonhill*, DeepMatter*, EU Supply* James Fisher, Haynes, Hunting , Location Sciences*, Marshall Motor and Synectics*.

Companies: AOR APC BMS CRPR DMTR ESC EUSP FDM FA/ GETB LSAI PCF SNX TCN W7L

17 Sep 18

LIBERUM: Sirius Minerals* - 2.5mtpa binding offtake and vertical integration in Brazil

Sirius have announced a binding offtake agreement at a peak volume rate of 2.5mt of POLY4 with Cibra, Brazil’s 6th largest distributor. In conjunction Sirius will purchase a 30% stake in Cibra, via an equity swap and the issuance of 95m Sirius shares.

Companies: Sirius Minerals

06 Sep 18

Copper bottom

Copper is entering an interesting phase. Supply is stretched from successive underinvestment at the mine level and demand is rising from infrastructure growth in China, new technologies and the ‘green revolution’. Opportunities exist to ride this cycle and market dynamics have changed, largely from China developing its commodity usage methodology and global economic jockeying. We believe that China is about to go into a major growth and regenerative phase that will be copper and iron ore dependant. Combined with predicted supply shortfalls, we see copper as a standout medium to long-term investment.

Companies: ARS ATYM CAML RMM SOLG

18 Jul 18

Quarterly Research Outlook

In Q2, UK equities regained some of their poise after the draw down in Q1, although uncertainty around Brexit continued to grab the headlines. On the back of this, investor concern about the UK economy has been understandable in recent months given a number of negative data points. However, we see reasons for optimism for UK Plc with wage growth supporting an improving outlook for the consumer and business investment holding up. That said, continuing UK political disruption clearly remains a risk going forward.

Companies: AMER EMR HMI JOG PDG ABBY AMS AVON BLVN PIER CGS CALL CSRT TIDE DTG DEMG ELM EMR FPM FPO GTLY GENL GOR GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG LAM MACF MKLW NAH OXIG PCA PKG CAKE PDG RBW REDD RSW RNO RKH ROR SUS SCPA SHG SIV TRAK TRI VTC ZTF

18 Sep 18

Pulp prices impacting trading further

On the back of today’s trading update we have reduced our group adj. PBT forecasts by £2m in each of the forecast years. This is to reflect the impact of the record pulp prices on James Cropper Paper, we have made no changes to our forecasts in either TFP or 3DP. We shall provide a more detailed analysis of the group at the time of the interims scheduled for November 2018. At this stage, we have assumed a flat dividend for each of the forecast years. We have reduced our DCF-derived target price to 1500p (1750p) but keep our Buy rating.

Companies: James Cropper

13 Jun 18

Growing momentum

Harvest Minerals is a producer of a unique organic fertiliser product that enables year round soil nourishment, low leachability and enhances the taste and yield of crops. Its primary asset is the Arapuá operation in Brazil’s agricultural heartland, the Minas Gerais region. Harvest runs a very simple, easily scalable fertiliser processing operation with operating margins of c.85% (AIC of c.$7.5/t, product sells for c.$60/t). It has just raised £9.7m to add further processing capacity and working capital to the operation. Operations are ramping up and interest is growing in its unique Direct Application Natural Fertilser (DANF) product called KPfértil.

Companies: Harvest Minerals

02 Jul 18

Regular quarterly update

Sirius Minerals (SXX) – Corporate – Regular quarterly update | Avation (AVAP) – Corporate – Year-end trading update

Companies: Sirius Minerals Avation

06 Sep 18

LIBERUM: Sirius Minerals* - Capex increased, project de-risking

Sirius has announced it will require a further $400m-$600m in Stage 2 financing, mainly relating increased costs from the Mineral Transport System tunnel. The NPV impact of the cost increase is <10%, however depending on the ultimate financing solution our NPV per share will reduce from £1.08 to between £0.75 and £1.00.

Companies: Sirius Minerals

06 Sep 18

Producing clean antimony and gold in Oman

Tri-Star Resources offers exposure to a unique business through its holding in the world’s newest and most environmentally friendly antimony and refractory gold recovery plant. The SPMP plant is located in a tax-free zone close to the town of Sohar in northern Oman, where it has access to low-cost energy and excellent infrastructure. At full capacity the plant will produce 15% to 20% of global antimony, displacing production from old, high-cost and polluting plants elsewhere in the world, particularly in China. As per the last RNS update in June 2018, plant construction was 98% complete and from our recent visit in July 2018, we could see that hot commissioning was underway. We initiate coverage with a 68p price target, based on a risk discounted sum-of-the-parts valuation. We anticipate moving this target upwards when the SPMP plant is operating at full capacity, with potential expansions giving further upside.

Companies: Tri-Star Resources

13 Sep 18

Strong full-year results, though (some) apprehensions remain

BHP Billiton reported strong FY18 results – on the back of the continuation of healthy price tailwinds and operational normalisation (at Escondida). While these improvements were largely in line with most large-cap peers, BHP is still faced with the uncertainties over Samarco and a material exposure to fossils (c.22% of gross assets) – even after the US shale asset disposal.

Companies: BHP Billiton

17 Sep 18

Undiscovered potential

The Company hosted a site visit to its flagship Gedabek gold/copper production facilities this summer outlining the amount of work completed to date to establish a robust base for sustainable operation and highlighting expansion potential within a portfolio of 1,926km2 of wholly owned highly prospective licenses in Azerbaijan.

Companies: Anglo Asian Mining

21 Jun 18

On course for a maiden dividend

Anglo Asian Mining has recently announced the intention to set a dividend plan which reflects current strong FCF generation at Gedabek operations and also signals management confidence in the production performance outlook. We have updated our earnings and CF estimates covering why we think the Company has ample capacity to accommodate a dividend programme while offering further valuation upside when compared to peers.

Companies: Anglo Asian Mining

02 Aug 18

Cashflow Is King

Following the acquisition of Lynx Resources’ Sasa mine in Macedonia, Central Asia Metals (CAML LN) is now demonstrating the successful transition to an expanded group with not one but two well managed operations both with low operating cost bases, low capex demands and stable operational track records. We expect this performance to continue resulting in levered free cash flow generation of US$84-99m over the next three years, which underpins a “best in class” dividend yield of 7.5%, based on the stated 30- 50% of free cash flow target payout range.

Companies: Central Asia Metals

08 Aug 18

LIBERUM: Sirius Minerals* - When Alphaville attacks: addressing the bear arguments

Yesterday FT Alphaville ran a piece amalgamating much of the bear fodder on Sirius here. We think its a worthwhile exercise to address the key points of contention highlighted in the story in order to place some of the project's risks in context.

Companies: Sirius Minerals

04 Sep 18

H2 2018

Graphite is an allotrope (a chemically similar, structural modification of carbon), exhibiting both metallic and non-metallic properties which favour a vast number of end-use markets. Further to traditional steel manufacturing, the unique qualities of graphite, including very high thermal and electrical conductivity, lend itself to innovative battery and emerging technologies.

Companies: VRS HAYD SYR TON KNL MNS NGC FMS LLG TLG

01 May 18

Base Resources: Overview

05 Sep 18

Kodal Minerals - Maiden Mineral Resource Estimate at Bougouni

20 Aug 18

Greatland Gold - Identifies Large Gold Target

03 Sep 18

Greatland Gold - Update on Ernest Giles Drilling Campaign

04 Dec 17

Solgold - Development update

03 Sep 18

Serbi Gold - Drilling at Palito continues to extend mining potential to the south

15 Feb 16

Gem Diamonds - Update at 121 Mining Investment

29 Aug 18

Mkango Resources - Announces Board Restructuring

22 Aug 18

Kodal Minerals - 32m at 1.61% Li2O returned at Sogola-Baoule

13 Aug 18

Avesoro Resources - Financial highlights for the three and six months ended June 30, 2018

11 May 17

Avesoro Resources - Q1 2017 Financial Results

31 Jul 18

Mkango Resources - Social responsibility program

09 May 18

Horizonte Minerals - Vermelho Mineral Resource

24 Jul 18

Serabi Gold - Operational Review of Second Quarter 2018

12 Jun 17

Solgold - Ecuador Strategy Update

Latest Content

ACP COG IOF SAV SSY

Morning Note – 20 September 2018

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20 Sep 18
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Salzgitter

Management raises 2018 guidance

Management continues to see revenue coming in at just above €9bn (our projection is €9.09bn), but instead of a pre-tax profit range of €250-300m, it now sees it reaching €300-350m (our projection is €310m). Management argues that this improved profit outlook is the result of protectionist measures taken by the EU. As a result, the inflow of steel coming from China has not developed as expected earlier. Whether the new trade barriers between the USA and China will lead to another change in the picture remains to be seen.

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20 Sep 18
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NULEGACY GOLD

VSA Morning Miner

NuLegacy Gold (NUG CN) has announced that Ed Cope who has been on the BoD since 2017 has now joined the management team to oversee exploration efforts and take responsibility for property evaluation and acquisition. Mr Cope has already contributed significantly to NUG, playing a key role in the discovery of Iceberg and Avocado as well as in the appointment of key personnel including Charles Weakly who has led the recent reinterpretation work.

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20 Sep 18
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MTFB SAV VLG

Northland Capital Partners Limited Morning Report

MOTIF BIO (MTFB.L) | SAVANNAH RESOURCES (SAV.L) | VENTURE LIFE GROUP (VLG.L)

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20 Sep 18
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ASO COG CLL HDD IDP NIPT QXT UNG TSL

Morning Note – 19 September 2018

Avesoro Resources (ASO): Corp New Liberty mineral resource upgrade | Cambridge Cognition (COG): Corp NeuroVocalix – first contract | Cello Health Group (CLL): Corp Trading well with good visibility | Hardide (HDD): Corp Upbeat trading update | InnovaDerma (IDP): Corp FY 2018 results – Boots to range Skinny Tan | Premaitha Health (NIPT): Corp Settlement with Illumina – freedom to operate globally | Quixant (QXT): Corp Weighting on a record H2 for gaming platforms | ThinkSmart (TSL): Corp Credible innovator, now developing new opportunities | Universe Group (UNG): Corp Interims

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19 Sep 18
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AAZ KRS LMI PGM WRES

SP Angel – Morning View

Anglo Asian Mining* (AAZ LN) – Gedabek JORC mineral resource at 1moz | Keras Resources* (KRS LN) – Ogaro prospect identified at Nayega Lonmin | PLC (LMI LN) – SACC approval | Phoenix Global Mining* (PGM LN) – Latest drilling hits high grade feeder zone at the Empire mine | W Resources (WRES LN) – Drilling results from Regua

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19 Sep 18
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Rainbow Rare Earths

2018 FY Results

Rainbow Rare Earths has released its 2018 financial year results. Despite the challenges facing a start-up mining operation in Burundi, RBW has successfully started mining at Gakara, and had sold 475t of concentrate at an average grade of 58% TREO by 30 June 2018. A further 100t was in transit as of 30 June 2018.

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19 Sep 18
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BMV ASO MNC SML HUM OSI TLY NTG SKIN ALM

Small Cap Breakfast

Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due 28 Sep. EBITDA Profitable. Offer TBA Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months. Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa

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19 Sep 18
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AMC AAZ BMV GSC PGM SML

SP Angel – Morning View

Amur Minerals* (AMC LN) –Kun Manie drilling update | Anglo Asian Mining* (AAZ LN) – Interims: maiden dividend (3USc) and dividend policy announced | Bluebird Merchant Ventures* (BMV LN) – Completion of Gubong Feasibility report and project update | Golden Star Resources (GSC CN) – Shareholders approve La Mancha investment | Phoenix Global Mining* (PGM LN) – Interim results | Strategic Minerals* (SML LN) – Redmoor drilling results

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