Stratex International (AIM: STI) has raised approximately £1.3 million through a placing of 37.2 million new ordinary shares at 3.5p and will use the money to accelerate the development of its Ethiopian portfolio of gold assets and identify additional exploration opportunities.
"Naturally we are delighted to have completed this placing which will help support the next stage of our growth strategy”, Stratex CEO Bob Foster said, “This includes fast-tracking our Ethiopian gold projects, Shehagne and Megenta, to define a maiden resource and economic potential respectively, as well as identifying additional exploration and development opportunities in Ethiopia and acquiring new projects throughout Africa.”
In northern Ethiopia, Stratex plans a 3,000m drilling programme to define maiden resources at the Shehagne gold project and 2,000m reconnaissance drilling to define economic potential of the Magenta gold discovery.
The company will also develop prospective targets through its 70%:30% joint venture, with PLUS-quoted Sheba Exploration. "2010 is set to be an exciting year for the company, as we widen our exploration activities in Africa and continue to advance our gold discoveries in Turkey towards production”, Foster added.
The placing was arranged by the company’s broker, Westhouse Securities Ltd, Stratex expects the admission of the placing share to take place on 3 February 2010.
A number of the company’s directors have subscribed for shares in the placing. CEO Foster, CFO Perry Ashwood and non-executive director Christopher Hall all subscribed for 57,143 shares each, while non-executive director Peter Addison bought 142,857 shares. As a result of the placing, Foster will own 2.45% of the enlarged share capital, and Ashwood, Addison and Hall will control 0.54%, 0.5% and 0.4% respectively. http://www.proactiveinvestors.com/companies/news/3928/stratex-international-raises-13-mln-for-ethiopia-gold-assets-3928.html
Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
Thursday, 28 January 2010
Pan African Resources expects first-half EPS to climb 45-50%
Pan African Resources (AIM: PAF) today updated the market on its first half results, expecting a 45% to 50% increase in earnings per share from 0.23 pence a year earlier, while headline earnings per share are set to be 1 to 6% higher than 0.36 pence in the half to 31 December 2008.
If denominated in South African Rand, earnings per share are expected to climb 17-22%, while headline earnings per share will likely be down 13-18%.
Interim results for the six months to 31 December 2009 will be released on 10 February.
Earlier this month, the company said it was still in talks over a previously flagged possible transaction after reporting that it had entered into discussions over a transaction that could have a material effect on the share price back in November.
Pan African produces approximately 100,000 oz (ounces) per year from the Barberton mine in South Africa. With effect from May 2009, it acquired 100% of the Phoenix platinum project in the country and also has a gold project in Mozambique, called Manica, with a resource of 33.8 Mt (million tonnes) grading 2.36 g/t (grams per tonne) gold for 2.57 Moz (million ounces).
Its focus is on developing low cost, high margin production or near production projects. The company has no debt, is unhedged and is able to fund all of its current on-mine capital from current cashflows.
Shares in the company rose nearly 3% on the news. http://www.proactiveinvestors.com/companies/news/3927/pan-african-resources-expects-first-half-eps-to-climb-45-50-3927.html
If denominated in South African Rand, earnings per share are expected to climb 17-22%, while headline earnings per share will likely be down 13-18%.
Interim results for the six months to 31 December 2009 will be released on 10 February.
Earlier this month, the company said it was still in talks over a previously flagged possible transaction after reporting that it had entered into discussions over a transaction that could have a material effect on the share price back in November.
Pan African produces approximately 100,000 oz (ounces) per year from the Barberton mine in South Africa. With effect from May 2009, it acquired 100% of the Phoenix platinum project in the country and also has a gold project in Mozambique, called Manica, with a resource of 33.8 Mt (million tonnes) grading 2.36 g/t (grams per tonne) gold for 2.57 Moz (million ounces).
Its focus is on developing low cost, high margin production or near production projects. The company has no debt, is unhedged and is able to fund all of its current on-mine capital from current cashflows.
Shares in the company rose nearly 3% on the news. http://www.proactiveinvestors.com/companies/news/3927/pan-african-resources-expects-first-half-eps-to-climb-45-50-3927.html
Discovery Metals submits Boseto copper project environmental assessment, BFS on track for March
Discovery Metals (ASX: DML; AIM: DME)said it saw no mitigated impacts or risks that could preclude the development of the Boseto copper project based on the findings of the environment and social impact assessment, which has been submitted to the government of Botswana.
The bankable feasibility study (BFS) for current open pit deposits is 80% complete and remains on track for completion in March this year. The BFS economics update released back in October showed ten year average net cash costs of US$1.04/lb and capital costs of US$150 million and a net present value (NPV) ranging from US$116 million to US$426 million, while internal rates of return would range from 18% to 57% with an expected payback within 2 years of the commencement of production.
The BFS is expected to be funded through to completion with the proceeds of a recent placement that raised A$13.1 million, which will also be used to cover exploration expenses and for deposits on long lead items in the future. After the placement and the completion of the A$2.7 million share purchase plan, the company held A$17.6 million in cash at the end of December 2009.
Discovery also updated investors on its drilling operations, saying that five deep holes were drilled at depth at the Zeta prospect at Boseto with all holes intersecting mineralisation, and assays were pending. The Zeta mineral resource was updated in October to 35.4 Mt (million tonnes) grading 1.4% copper and 22.3 g/t (grammes per tonne) silver at a cut-off grade of 0.6% copper consisting of measured resources of 3.9 Mt at 1.6% copper and 23.0 g/t silver, indicated resources of 7.0 Mt at 1.5% copper and 23.8 g/t silver and inferred resources of 24.5 Mt at1.4% copper and 21.8 g/t silver.
Meanwhile, work has commenced on the JOGMEC founded Dikoloti nickel/copper joint exploration programme. Back in October the company entered into a joint exploration agreement with JOGMEC (Japan Oil, Gas and Metals National Corp) to fund an A$3 million exploration programme for its 85% owned and operated Dikoloti. JOGMEC has the right to earn a joint venture interest of up to 60% and is the exploration programme proves successful, it will likely assign its interest to another Japanese entity for the development and operating expenses.
The resource at the Dikoloti project is estimated at 4.1 Mt in the inferred category grading 0.7% nickel, 0.5% copper and 1.2 g/t PGE (platinum group of elements).
Back in December, broker Westhouse initiated coverage of Discovery Metals giving the Botswana operating nickel and copper miner a 'buy' rating and setting a target price of 35.25 pence, calling its core asset Boseto “an excellent copper project with plenty of upside".
The valuation was based on a modeled copper price of US$2.5/lb, while the Boseto project’s break even price stands at US$1.64/lb. The project was valued fully funded on the current proposed 10 mine life at 2 Mt (million tonnes) and accounted for a value of 33 pence per share, while the rest was derived from Dikoloti JV (joint venture), valued at US$3 million.
The bankable feasibility study (BFS) for current open pit deposits is 80% complete and remains on track for completion in March this year. The BFS economics update released back in October showed ten year average net cash costs of US$1.04/lb and capital costs of US$150 million and a net present value (NPV) ranging from US$116 million to US$426 million, while internal rates of return would range from 18% to 57% with an expected payback within 2 years of the commencement of production.
The BFS is expected to be funded through to completion with the proceeds of a recent placement that raised A$13.1 million, which will also be used to cover exploration expenses and for deposits on long lead items in the future. After the placement and the completion of the A$2.7 million share purchase plan, the company held A$17.6 million in cash at the end of December 2009.
Discovery also updated investors on its drilling operations, saying that five deep holes were drilled at depth at the Zeta prospect at Boseto with all holes intersecting mineralisation, and assays were pending. The Zeta mineral resource was updated in October to 35.4 Mt (million tonnes) grading 1.4% copper and 22.3 g/t (grammes per tonne) silver at a cut-off grade of 0.6% copper consisting of measured resources of 3.9 Mt at 1.6% copper and 23.0 g/t silver, indicated resources of 7.0 Mt at 1.5% copper and 23.8 g/t silver and inferred resources of 24.5 Mt at1.4% copper and 21.8 g/t silver.
Meanwhile, work has commenced on the JOGMEC founded Dikoloti nickel/copper joint exploration programme. Back in October the company entered into a joint exploration agreement with JOGMEC (Japan Oil, Gas and Metals National Corp) to fund an A$3 million exploration programme for its 85% owned and operated Dikoloti. JOGMEC has the right to earn a joint venture interest of up to 60% and is the exploration programme proves successful, it will likely assign its interest to another Japanese entity for the development and operating expenses.
The resource at the Dikoloti project is estimated at 4.1 Mt in the inferred category grading 0.7% nickel, 0.5% copper and 1.2 g/t PGE (platinum group of elements).
Back in December, broker Westhouse initiated coverage of Discovery Metals giving the Botswana operating nickel and copper miner a 'buy' rating and setting a target price of 35.25 pence, calling its core asset Boseto “an excellent copper project with plenty of upside".
The valuation was based on a modeled copper price of US$2.5/lb, while the Boseto project’s break even price stands at US$1.64/lb. The project was valued fully funded on the current proposed 10 mine life at 2 Mt (million tonnes) and accounted for a value of 33 pence per share, while the rest was derived from Dikoloti JV (joint venture), valued at US$3 million.
Caledon Resources says 2009 saleable coal production in line, to explore expansion opportunities in
Caledon Resources (AIM: CDN) reported higher production in Q4 and said the saleable production of 485,000 tonnes it managed to achieve at its Cook coal mine operations in 2009 was in line with a previous announcement in December. It is still planning on a base production of 700,000t for 2010 and investigating options for further expansion.
Raw coal production in Q4 amounted to 162,000t, or a year-on-year improvement of 2%, and to 604,000 for the full year, which is 10% more than in 2008. Coking coal production for the quarter rose 3% year-on-year to 109,000t and 7% for the full year to 406,000t, while thermal coal production improved 20% to 79,000t in 2009.
Caledon sold 109,000t and 403,000t of coking coal in Q4 and full year 2009 respectively, marking an improvement of 4% and 1% respectively. Thermal coal sales dropped 81% to 7,000t in Q4, but climbed 15% to 76,000t in 2009.
Caledon said that the continuing strong demand from China and India, recommissioning of blast furnace capacity and reported sales of up to US$190/t are reinforcing forecasts of a significant increase in coking coal prices in the 2010 contract year, which will commence in April, while any increase would benefit the company from the start of Q2 2010.
A second field programme is still planned for Q2 2010 at the Minyango mine in Queensland, where no significant activity has taken place since the last update as the company is currently preparing a report on the recently completed first stage of field work for the ecological study required as part of the environmental permitting process.
The timing of the project is linked to that of the development of the proposed new coal loading terminal at Wiggins Island, which is expected to commence operations in 2013 after Caledon’s Wiggins Island Coal Export Terminal (WICET) executes the Wigging Island framework deed with the Queensland Government and Gladstone Ports Corp, enabling it to develop the port.
WICET is currently reviewing tonnage allocation requests for the first stage of the port development in preparation for commitment to take or pay contracts, which will be used as the basis for securing funding for the first stage.
Successful participants in this stage will be required to lodge a bid bond reflecting their share of costs to reach Financial Close which is scheduled for July this year. http://www.proactiveinvestors.com/companies/news/3925/caledon-resources-says-2009-saleable-coal-production-in-line-to-explore-expansion-opportunities-in--3925.html
Raw coal production in Q4 amounted to 162,000t, or a year-on-year improvement of 2%, and to 604,000 for the full year, which is 10% more than in 2008. Coking coal production for the quarter rose 3% year-on-year to 109,000t and 7% for the full year to 406,000t, while thermal coal production improved 20% to 79,000t in 2009.
Caledon sold 109,000t and 403,000t of coking coal in Q4 and full year 2009 respectively, marking an improvement of 4% and 1% respectively. Thermal coal sales dropped 81% to 7,000t in Q4, but climbed 15% to 76,000t in 2009.
Caledon said that the continuing strong demand from China and India, recommissioning of blast furnace capacity and reported sales of up to US$190/t are reinforcing forecasts of a significant increase in coking coal prices in the 2010 contract year, which will commence in April, while any increase would benefit the company from the start of Q2 2010.
A second field programme is still planned for Q2 2010 at the Minyango mine in Queensland, where no significant activity has taken place since the last update as the company is currently preparing a report on the recently completed first stage of field work for the ecological study required as part of the environmental permitting process.
The timing of the project is linked to that of the development of the proposed new coal loading terminal at Wiggins Island, which is expected to commence operations in 2013 after Caledon’s Wiggins Island Coal Export Terminal (WICET) executes the Wigging Island framework deed with the Queensland Government and Gladstone Ports Corp, enabling it to develop the port.
WICET is currently reviewing tonnage allocation requests for the first stage of the port development in preparation for commitment to take or pay contracts, which will be used as the basis for securing funding for the first stage.
Successful participants in this stage will be required to lodge a bid bond reflecting their share of costs to reach Financial Close which is scheduled for July this year. http://www.proactiveinvestors.com/companies/news/3925/caledon-resources-says-2009-saleable-coal-production-in-line-to-explore-expansion-opportunities-in--3925.html
Stirling Products has high hopes for ImmunoXel clinical trial to treat flu
Australian healthcare company Stirling Products Limited (ASX:STI) will test its botanical extract ImmunoXel to treat flu.
The clinical trial will take place in the Ukraine. Classified as a dietary supplement, ImmunoXel is an immune system optimizing agent which helps the human body ‘naturally’ fight viruses.
Currently, two drugs - zanamivir and oseltamivir - are largely relied upon by doctors to be effective in combating the flu.
However, these two drugs are only able to shorten the duration of the flu by an average of about 1 or 2 days. These two drugs are associated with adverse side effects, but can also be prone to drug resistance.
ImmunoXel has already been shown to decrease the duration of the flu in clinical trial participants by 2 - 3 days.
The advantage of ImmunoXel is that it promotes optimized immune system function, and does not rely upon a drug effect against the virus itself.
ImmunoXel’s predecessor product, Dzherelo, is widely used in the Ukraine to lessen the effects and duration of the flu and also as a preventative.
The product is considered safe and effective both by its consumers and by the Ukraine government regulatory body.
In the upcoming trial, ImmunoXel effectiveness on the body’s immune system will be tested in people with seasonal flu (including swine flu, or 2009 H1N1 flu) both alone, and in tandem with conventional flu drugs.
If ImmunoXel’s effect on the immune system is synergistic with antiviral drugs in controlling the flu, such a combination of ImmunoXel as an immune system optimizer together with an antiviral drug may be a breakthrough for seasonal flu treatment.
The aim with ImmunoXel is to have a ‘natural’ process of successfully addressing the flu using the power of an optimized immune system alone, without the need of introducing drugs into the system.
Stirling will soon launch ImmunoXel in the USA, under the ‘i-Naturals’ branding. Marketing will focus on ImmunoXel’s demonstrated ability to assist and optimize the body’s naturally effective immune system. In addition to flu, published clinical trials have reported the efficacy of ImmunoXel in combating XDR-TB (extensively drug resistant tuberculosis), one of the world’s deadliest diseases.
Under the terms of the agreement governing the upcoming clinical trial in the Ukraine, Stirling will support laboratory costs, physician fees, and patient costs.
ImmunoXel will be supplied by the Company’s Licensor, Ekomed LLC, and antiviral drugs will be supplied by Stirling or its alliance partner Cipla Limited.
ImmunoXel has been the subject of over 12 clinical trials in cases of infectious diseases, and has been used by millions of people over the last 15 years.
Stirling recently raised $2m via a capital raising. http://www.proactiveinvestors.com/companies/news/3924/stirling-products-has-high-hopes-for-immunoxel-clinical-trial-to-treat-flu-3924.html
The clinical trial will take place in the Ukraine. Classified as a dietary supplement, ImmunoXel is an immune system optimizing agent which helps the human body ‘naturally’ fight viruses.
Currently, two drugs - zanamivir and oseltamivir - are largely relied upon by doctors to be effective in combating the flu.
However, these two drugs are only able to shorten the duration of the flu by an average of about 1 or 2 days. These two drugs are associated with adverse side effects, but can also be prone to drug resistance.
ImmunoXel has already been shown to decrease the duration of the flu in clinical trial participants by 2 - 3 days.
The advantage of ImmunoXel is that it promotes optimized immune system function, and does not rely upon a drug effect against the virus itself.
ImmunoXel’s predecessor product, Dzherelo, is widely used in the Ukraine to lessen the effects and duration of the flu and also as a preventative.
The product is considered safe and effective both by its consumers and by the Ukraine government regulatory body.
In the upcoming trial, ImmunoXel effectiveness on the body’s immune system will be tested in people with seasonal flu (including swine flu, or 2009 H1N1 flu) both alone, and in tandem with conventional flu drugs.
If ImmunoXel’s effect on the immune system is synergistic with antiviral drugs in controlling the flu, such a combination of ImmunoXel as an immune system optimizer together with an antiviral drug may be a breakthrough for seasonal flu treatment.
The aim with ImmunoXel is to have a ‘natural’ process of successfully addressing the flu using the power of an optimized immune system alone, without the need of introducing drugs into the system.
Stirling will soon launch ImmunoXel in the USA, under the ‘i-Naturals’ branding. Marketing will focus on ImmunoXel’s demonstrated ability to assist and optimize the body’s naturally effective immune system. In addition to flu, published clinical trials have reported the efficacy of ImmunoXel in combating XDR-TB (extensively drug resistant tuberculosis), one of the world’s deadliest diseases.
Under the terms of the agreement governing the upcoming clinical trial in the Ukraine, Stirling will support laboratory costs, physician fees, and patient costs.
ImmunoXel will be supplied by the Company’s Licensor, Ekomed LLC, and antiviral drugs will be supplied by Stirling or its alliance partner Cipla Limited.
ImmunoXel has been the subject of over 12 clinical trials in cases of infectious diseases, and has been used by millions of people over the last 15 years.
Stirling recently raised $2m via a capital raising. http://www.proactiveinvestors.com/companies/news/3924/stirling-products-has-high-hopes-for-immunoxel-clinical-trial-to-treat-flu-3924.html
White Canyon Uranium directors increase shareholdings
Lew Cross chairman, and Richard Sciano, director of White Canyon Uranium (ASX: WCU) have separately increased their holdings in WCU ordinary shares.
Cross exercised 25,000 January 29 options at 25c per share to take his holding to 75,000 fully paid ordinary shares.
Sciano's Auctor Group Pty Ltd purchased 50,000 WCU shares on-market at 25.5c on 28 January to take his holding to 600,000 ordinary shares. http://www.proactiveinvestors.com/companies/news/3922/white-canyon-uranium-directors-increase-shareholdings-3922.html
Cross exercised 25,000 January 29 options at 25c per share to take his holding to 75,000 fully paid ordinary shares.
Sciano's Auctor Group Pty Ltd purchased 50,000 WCU shares on-market at 25.5c on 28 January to take his holding to 600,000 ordinary shares. http://www.proactiveinvestors.com/companies/news/3922/white-canyon-uranium-directors-increase-shareholdings-3922.html
Apollo Minerals kicks off work at Commonwealth Hill Iron Project
Magnetite-focussed explorer and developer, Apollo Minerals (ASX Code: AON) commenced work today on assessing the exploration potential for iron at its 100% held Commonwealth Hill Project located in South Australia’s Gawler Craton.
Apollo's flagship project is the Mt Oscar magnetite project in the Pilbara, Western Australia.
Results from recent target generative work, with combined with earlier exploration data covering the Commonwealth Hill tenements located in north western South Australia, are being assessed.
The objective is to commission resource-definition and discovery drilling programs.
Geophysical modelling of data from the recent detailed ground magnetic and gravity surveys has identified over seven new iron targets at Commonwealth Hill.
With the exception of anomaly 8 (Sequoia) which is the only prospect with outcropping banded iron formation (BIF), modelling suggests that the depth-to-top of unweathered magnetite generally ranges from about 30 to 80 metres.
The eight anomalies are essentially of two types:
- Linear anomalies (five) which may represent banded iron formation and/or magnetite in schist or gneiss; and
- Circular more discrete anomalies (three) which may represent small basic intrusions or pipe-like bodies containing magnetite that are less likely to have significant iron ore potential but may have base metal and/or gold potential.
Anomaly 8 is the Sequoia Prospect where the SA Geological Survey undertook ground magnetics surveys, drilled eight angled RC holes and one angled diamond hole and completed metallurgical testwork in 1995.
Drilling at Anomaly 8 was insufficient for the estimation of a JORC compliant resource estimate.
Magnetite mineralisation was confirmed, comprising several steeply dipping laterally discontinuous magnetite-BIF layers from 2 to 50 metres wide, and which extends below a weathering surface of around 45 metres.
Metallurgical testwork undertaken by Amdel Limited Mineral Processing Services at the Sequoia Iron Project drilled by South Australian Geological Survey was found to be readily beneficiated to concentrates grading 70.3% iron.
The final grind produced material of which 80% was less than 63 microns.
Indicating very encouraging results ascribed to the coarse grain size of what is assumed to be a highly metamorphosed BIF.
Apollo intends to undertake further resource definition drilling at Sequoia and conduct discovery drilling on the remaining geophysical anomalies including Ibis.
The objective is to ultimately define sufficient resources and reserves from one or more sources to support a stand-alone magnetite treatment plant - capable of producing saleable-grade concentrates for export. http://www.proactiveinvestors.com/companies/news/3921/apollo-minerals-kicks-off-work-at-commonwealth-hill-iron-project-3921.html
Apollo's flagship project is the Mt Oscar magnetite project in the Pilbara, Western Australia.
Results from recent target generative work, with combined with earlier exploration data covering the Commonwealth Hill tenements located in north western South Australia, are being assessed.
The objective is to commission resource-definition and discovery drilling programs.
Geophysical modelling of data from the recent detailed ground magnetic and gravity surveys has identified over seven new iron targets at Commonwealth Hill.
With the exception of anomaly 8 (Sequoia) which is the only prospect with outcropping banded iron formation (BIF), modelling suggests that the depth-to-top of unweathered magnetite generally ranges from about 30 to 80 metres.
The eight anomalies are essentially of two types:
- Linear anomalies (five) which may represent banded iron formation and/or magnetite in schist or gneiss; and
- Circular more discrete anomalies (three) which may represent small basic intrusions or pipe-like bodies containing magnetite that are less likely to have significant iron ore potential but may have base metal and/or gold potential.
Anomaly 8 is the Sequoia Prospect where the SA Geological Survey undertook ground magnetics surveys, drilled eight angled RC holes and one angled diamond hole and completed metallurgical testwork in 1995.
Drilling at Anomaly 8 was insufficient for the estimation of a JORC compliant resource estimate.
Magnetite mineralisation was confirmed, comprising several steeply dipping laterally discontinuous magnetite-BIF layers from 2 to 50 metres wide, and which extends below a weathering surface of around 45 metres.
Metallurgical testwork undertaken by Amdel Limited Mineral Processing Services at the Sequoia Iron Project drilled by South Australian Geological Survey was found to be readily beneficiated to concentrates grading 70.3% iron.
The final grind produced material of which 80% was less than 63 microns.
Indicating very encouraging results ascribed to the coarse grain size of what is assumed to be a highly metamorphosed BIF.
Apollo intends to undertake further resource definition drilling at Sequoia and conduct discovery drilling on the remaining geophysical anomalies including Ibis.
The objective is to ultimately define sufficient resources and reserves from one or more sources to support a stand-alone magnetite treatment plant - capable of producing saleable-grade concentrates for export. http://www.proactiveinvestors.com/companies/news/3921/apollo-minerals-kicks-off-work-at-commonwealth-hill-iron-project-3921.html
Stirling Resources MD Michael Kiernan acquires more shares
Michael Kiernan's Crawley Investments topped up its shareholding in Stirling Resources (ASX: SRE) acquiring 60,250 shares on-market at 13 cents on the 15th January 2010. http://www.proactiveinvestors.com/companies/news/3920/stirling-resources-md-michael-kiernan-acquires-more-shares-3920.html
Discovery Metals continuing progress on Boseto copper project
Discovery Metals (ASX: DML; AIM: DME)said it saw no mitigated impacts or risks that could preclude the development of the Boseto copper project based on the findings of the environment and social impact assessment, which has been submitted to the government of Botswana.
The bankable feasibility study (BFS) for current open pit deposits is 80% complete and remains on track for completion in March this year. The BFS economics update released back in October showed ten year average net cash costs of US$1.04/lb and capital costs of US$150 million and a net present value (NPV) ranging from US$116 million to US$426 million, while internal rates of return would range from 18% to 57% with an expected payback within 2 years of the commencement of production.
The BFS is expected to be funded through to completion with the proceeds of a recent placement that raised A$13.1 million, which will also be used to cover exploration expenses and for deposits on long lead items in the future. After the placement and the completion of the A$2.7 million share purchase plan, the company held A$17.6 million in cash at the end of December 2009.
Discovery also updated investors on its drilling operations, saying that five deep holes were drilled at depth at the Zeta prospect at Boseto with all holes intersecting mineralisation, and assays were pending. The Zeta mineral resource was updated in October to 35.4 Mt (million tonnes) grading 1.4% copper and 22.3 g/t (grammes per tonne) silver at a cut-off grade of 0.6% copper consisting of measured resources of 3.9 Mt at 1.6% copper and 23.0 g/t silver, indicated resources of 7.0 Mt at 1.5% copper and 23.8 g/t silver and inferred resources of 24.5 Mt at1.4% copper and 21.8 g/t silver.
Meanwhile, work has commenced on the JOGMEC founded Dikoloti nickel/copper joint exploration programme. Back in October the company entered into a joint exploration agreement with JOGMEC (Japan Oil, Gas and Metals National Corp) to fund an A$3 million exploration programme for its 85% owned and operated Dikoloti. JOGMEC has the right to earn a joint venture interest of up to 60% and is the exploration programme proves successful, it will likely assign its interest to another Japanese entity for the development and operating expenses.
The resource at the Dikoloti project is estimated at 4.1 Mt in the inferred category grading 0.7% nickel, 0.5% copper and 1.2 g/t PGE (platinum group of elements).
Back in December, broker Westhouse initiated coverage of Discovery Metals giving the Botswana operating nickel and copper miner a 'buy' rating and setting a target price of 35.25 pence, calling its core asset Boseto “an excellent copper project with plenty of upside".
The valuation was based on a modeled copper price of US$2.5/lb, while the Boseto project’s break even price stands at US$1.64/lb. The project was valued fully funded on the current proposed 10 mine life at 2 Mt (million tonnes) and accounted for a value of 33 pence per share, while the rest was derived from Dikoloti JV (joint venture), valued at US$3 million. http://www.proactiveinvestors.co.uk/companies/news/12714/discovery-metals-continuing-progress-on-boseto-copper-project-12714.html
The bankable feasibility study (BFS) for current open pit deposits is 80% complete and remains on track for completion in March this year. The BFS economics update released back in October showed ten year average net cash costs of US$1.04/lb and capital costs of US$150 million and a net present value (NPV) ranging from US$116 million to US$426 million, while internal rates of return would range from 18% to 57% with an expected payback within 2 years of the commencement of production.
The BFS is expected to be funded through to completion with the proceeds of a recent placement that raised A$13.1 million, which will also be used to cover exploration expenses and for deposits on long lead items in the future. After the placement and the completion of the A$2.7 million share purchase plan, the company held A$17.6 million in cash at the end of December 2009.
Discovery also updated investors on its drilling operations, saying that five deep holes were drilled at depth at the Zeta prospect at Boseto with all holes intersecting mineralisation, and assays were pending. The Zeta mineral resource was updated in October to 35.4 Mt (million tonnes) grading 1.4% copper and 22.3 g/t (grammes per tonne) silver at a cut-off grade of 0.6% copper consisting of measured resources of 3.9 Mt at 1.6% copper and 23.0 g/t silver, indicated resources of 7.0 Mt at 1.5% copper and 23.8 g/t silver and inferred resources of 24.5 Mt at1.4% copper and 21.8 g/t silver.
Meanwhile, work has commenced on the JOGMEC founded Dikoloti nickel/copper joint exploration programme. Back in October the company entered into a joint exploration agreement with JOGMEC (Japan Oil, Gas and Metals National Corp) to fund an A$3 million exploration programme for its 85% owned and operated Dikoloti. JOGMEC has the right to earn a joint venture interest of up to 60% and is the exploration programme proves successful, it will likely assign its interest to another Japanese entity for the development and operating expenses.
The resource at the Dikoloti project is estimated at 4.1 Mt in the inferred category grading 0.7% nickel, 0.5% copper and 1.2 g/t PGE (platinum group of elements).
Back in December, broker Westhouse initiated coverage of Discovery Metals giving the Botswana operating nickel and copper miner a 'buy' rating and setting a target price of 35.25 pence, calling its core asset Boseto “an excellent copper project with plenty of upside".
The valuation was based on a modeled copper price of US$2.5/lb, while the Boseto project’s break even price stands at US$1.64/lb. The project was valued fully funded on the current proposed 10 mine life at 2 Mt (million tonnes) and accounted for a value of 33 pence per share, while the rest was derived from Dikoloti JV (joint venture), valued at US$3 million. http://www.proactiveinvestors.co.uk/companies/news/12714/discovery-metals-continuing-progress-on-boseto-copper-project-12714.html
Xcite Energy secures offtake deal and US$20 mln financing from BP for Bentley oil field
Xcite Energy Ltd (TSX-V, AIM: XEL), a developer of heavy oil assets in the UK North Sea, said its unit Xcite Energy Resources Ltd (XER) has secured an offtake agreement with BP Oil International Ltd, under which BPOI will sell the crude from XER’s Bentley field in return for an incentive-based fee per barrel.
The offtake fee is directly related to the realised price achieved by BPOI for the Bentley crude oil in relation to the prevailing Brent crude price, incentivising BPOI to maximise the price per barrel achieved for XER by minimising the discount to Brent crude.
BPOI have undertaken that when Xcite moves to full field development, an associated BP company will procure US$20 million of financing from a commercial bank for Xcite with credit support from BP PLC (LSE: BP), for the purpose of assisting with the full development of the Bentley field, the terms of which will be negotiated in due course.
Xcite CEO Richard Smith commented: "We are delighted to welcome BP Oil International as our offtake partner in the Bentley field. This is a relationship that brings the global resources and expertise of the BP oil trading organisation to manage the marketing and selling of the Bentley crude, together with assistance in financing the work programme as we move towards first oil on the field. This is another watershed for the company, which underpins the value of Bentley crude through field life and significantly progresses the plan for development."
Xcite will be drilling the first development well in the Bentley heavy crude field in the current first quarter of 2010. Last October it announced reaching an agreement with Fugro Well Services Ltd to drill and test the well, called 9/3b-R, on a risked basis. Fugro will bear a material percentage of the cost of the well in return for a commitment to be engaged to carry out future work if the well is successful. Fugro has joined the Bentley Alliance, a management and operational structure created by Xcite to direct the Bentley field into full field development.
The Bentley field is among the largest undeveloped heavy oil prospects in the North Sea. Its resource estimate was last year upped to 690 million barrels of oil (mbo) with the upside at nearly 890 mbo following a 3D seismic survey.
The most likely aggregate contingent and prospective resources stand at 160 million barrels, valued at US$1 billion at a flat price of oil of US$80/barrel, while the upside estimate puts its overall value at US$2 billion.
Arbuthnot in December 2009 initiated coverage of Xcite, giving it a ‘strong buy’ rating and setting the target price at 133 pence, which still more than favourably compares to the stock’s current value of 49.50pence.
The broker said that projects like the “extremely undervalued” Bentley viscous oil field give the oil and gas industry the opportunity to boost reserves and further extend the productive life of a very mature oil province in decline, foreseeing a significant increase in investment into such projects.http://www.proactiveinvestors.co.uk/companies/news/12692/xcite-energy-secures-offtake-deal-and-us20-mln-financing-from-bp-for-bentley-oil-field-12692.html
The offtake fee is directly related to the realised price achieved by BPOI for the Bentley crude oil in relation to the prevailing Brent crude price, incentivising BPOI to maximise the price per barrel achieved for XER by minimising the discount to Brent crude.
BPOI have undertaken that when Xcite moves to full field development, an associated BP company will procure US$20 million of financing from a commercial bank for Xcite with credit support from BP PLC (LSE: BP), for the purpose of assisting with the full development of the Bentley field, the terms of which will be negotiated in due course.
Xcite CEO Richard Smith commented: "We are delighted to welcome BP Oil International as our offtake partner in the Bentley field. This is a relationship that brings the global resources and expertise of the BP oil trading organisation to manage the marketing and selling of the Bentley crude, together with assistance in financing the work programme as we move towards first oil on the field. This is another watershed for the company, which underpins the value of Bentley crude through field life and significantly progresses the plan for development."
Xcite will be drilling the first development well in the Bentley heavy crude field in the current first quarter of 2010. Last October it announced reaching an agreement with Fugro Well Services Ltd to drill and test the well, called 9/3b-R, on a risked basis. Fugro will bear a material percentage of the cost of the well in return for a commitment to be engaged to carry out future work if the well is successful. Fugro has joined the Bentley Alliance, a management and operational structure created by Xcite to direct the Bentley field into full field development.
The Bentley field is among the largest undeveloped heavy oil prospects in the North Sea. Its resource estimate was last year upped to 690 million barrels of oil (mbo) with the upside at nearly 890 mbo following a 3D seismic survey.
The most likely aggregate contingent and prospective resources stand at 160 million barrels, valued at US$1 billion at a flat price of oil of US$80/barrel, while the upside estimate puts its overall value at US$2 billion.
Arbuthnot in December 2009 initiated coverage of Xcite, giving it a ‘strong buy’ rating and setting the target price at 133 pence, which still more than favourably compares to the stock’s current value of 49.50pence.
The broker said that projects like the “extremely undervalued” Bentley viscous oil field give the oil and gas industry the opportunity to boost reserves and further extend the productive life of a very mature oil province in decline, foreseeing a significant increase in investment into such projects.http://www.proactiveinvestors.co.uk/companies/news/12692/xcite-energy-secures-offtake-deal-and-us20-mln-financing-from-bp-for-bentley-oil-field-12692.html
Eaglecrest Explorations Interview Transcript with Hans Rasmussen
Harry Norman: Hello this is Harry Norman, for Proactive Investors and welcome to another Proactive audio interview. Today is 13th January 2010 and I am talking with Hans Rasmussen President Chief Operating Officer and Director of Eaglecrest Explorations listed on the TSX venture exchange metals and mining sector. Stock ticker EEL, share price C$0.54; market cap 20.2 C$5 million; web address: eaglecrestexplorations.com. Hans, thank you very much for joining us for this interview.
Hans Rasmussen: Thanks for having me.
Why is a geophysicist and geologist such as yourself, looking for gold in Bolivia and Columbia?
Well I’ve been in the business for 26 years now and most of my time has been spent in the Americas and I feel very comfortable, I’m almost bilingual and the potential for discovery is going to be in places that have been looked at the least. Two countries that represent that would be Bolivia and Columbia, there are others in South America, but these are two places I feel very comfortable working in. They have high potential for discovery, particularly if you look at the history of production of metals, both of them have 500 years of history of metal production so that’s why I like these places.
What progress has been made at Eaglecrest Exploration’s San Simon gold project in north eastern Bolivia and what ideas do you have about how this project could be commercialised?
I’ve been involved with Eaglecrest since January 2007 and we’ve made very significant progress in understanding how gold is distributed in the known zones of gold mineralisation. That was huge, that was a big turnaround for the company in terms of actually coming closer to a resource calculation. And we were producing gold at the same time as we were drilling on the [Dona Amelia] zone at the project.
So two things have come together there that lead to what we would end up commercialising. Number one is we can find more gold because we know where it is, how it’s located, how to drill it. And number two, we know how to produce it. We know [from our production experience] that it has great metallurgy 85 to 95% of the gold can be recovered because we had a gold processing plant working for almost two years and we were producing a gold concentrate from the rock that we were pulling from the underground.
So commercialisation from my point of view, is selling the asset to a producer. Our goal at Eaglecrest is to be an explorer, to drill out gold resources, to pave the way for a producer to come in and buy the asset and go into production. We’ve only had time, in my three term at Eaglecrest so far, to work less than 20% of the property and within that 20% of the property I feel like we have very strong indications that we have potential for three different areas with economic gold mineralisation. Of course to prove that, we’ve got to drill, that’s the next step for Eaglecrest.
What are your thoughts on operating a mining exploration and development company in Bolivia, Hans?
Going back to the places in the world where there are producers operating, Bolivia is one of those places that producers are operating. I am in very good communications with Coeur d’Alene, who put the San Bartolome mine into production. And if you look at their release last November I think it was, or December, they comment how the government was very supportive. They’re making silver at about C$6 an ounce, which is highly profitable, in a historic district with lots of headaches, you know, where you’ve got lots of people to deal with. They were able to go into production and the government was very supportive.
The same [support from the government has occurred] for some of the other big projects that happened in Bolivia, you looked at the San Cristobal project where Apex silver put that into production with the help of Sumitomo, now Sumitomo is mining there. The latest new project that’s going into production is called Mutun and Jindal, an East Indian Company, will invest C$2.1 Billion to mine half of the Iron ore deposits there. So, it’s a pro-mining culture, I think that mining operations and developments are possible in Bolivia. You just have to have a good relationship with the government, like in any Latin-American country.
What can you tell investors about your recent acquisition, Fredonia, in the Central Cordillera Gold Belt of Columbia?
The Board of Directors have Eaglecrest decided that Columbia was a great place to diversify Eaglecrest in terms of having multiple exploration properties and diversifying in this fantastic gold market that we’re coming into. Columbia, historically has been the largest gold producer in the South America, so that was geologically a great place to think about and just in the last five or six years let’s say, stability and safety of the company has become significantly better than it was even in the late 1990s.
So, we decided, okay this is the place to explore and the Fredonia was selected because it’s close to infrastructure and in and around the Fredonia area you’ve got some resources that have been drilled out that are about 2 million ounces, and you’ve got a couple of historic districts with well over ten million ounces of both historic production and ounces of gold that’s still in the ground. So the Fredonia area for me was a large real estate play, in terms of getting our foot in the door in Columbia, grabbing 18,000 hectares or 180 km² of mineral title in an area that’s highly prospective.
What are your thoughts on operating in Columbia, Hans?
My understanding right now of Columbia, it is a very pro-development culture. Of course we’ve got some examples now of people operating there that will go into production in the near future, like AngloGold-Ashanti at their 12 million ounce La Colosa gold project. And, you’ve got some new drill results from others like Ventana Gold -- that are also kind of a hot topic on the street right now.
Those guys [Anglo] are going to be going into production in the next five years and from what I understand they’ve got great relationships with the government and the government is pro development. So, from what I can tell, gold mining is part of their culture and the mining law is upheld in court. So there’s no question about whether or not you’re going to be able mine, it’s just you’ve got to follow the legal steps in order to achieve the mining permit and things like that along the way.
Eaglecrest Explorations has just closed a non-brokered private placement raising nearly C$580,000, where does this leave the company’s financial situation going forwards, Hans?
Well, at this stage we have a burn rate with our Bolivian operation and our Columbian operation of about $150,000 a month. So if you just do the math on that you’re looking at about 3 months earn in that financing. We open and closed this financing really quickly, because we had an interested investor that was an institutional investor that we wanted to Eaglecrest right away. So that was open and closed before Christmas. And, something that is very difficult to do, literally at the meeting with that investor was somewhere around December 11th and the thing was closed 14 days later.
So, that was a very small [equity] placement compared to what we were seeking but we basically wanted to open and close it for that particular investor. We’re going to continue to look for more financing, we’re going to need about C$4 million a year in terms of total burned, if we want to start drilling in Bolivia, once we start drilling in Columbia then we’re going to have to bulk that up even higher.
When did Sprott Asset Management become investors in Eaglecrest Explorations and has their investment encouraged other institutions to take an interest in the company?
Yes, Sprott Asset Management was the lead order of the CAD$580,000 placement that we just closed. And again, they are interested in getting involved with Eaglecrest, they’ve met management and they like the idea of both Bolivia and Columbia, and gold. Today we’ve basically gotten through the paperwork of the placement and not had a chance to spend much time marketing the fact that Sprott is in. So, we haven’t had a chance to see if their investment will encourage other institutions.
Now, on that same note, in Fall 2007, Doug Casey personally, and his hedge fund and a couple of his employees, invested in Eaglecrest just based on a [personal] tour of our Bolivian operation. And we’ve had institutional investors and that really helped the story. Doug of course, by word of mouth, I’m sure helped get other investors in that bought shares in the market. We will hopefully use Sprott Asset Management for both shares in the market and to encourage his friends and his connections to get involved in terms of more financing for Eaglecrest in the future.
What can investors expect from Eaglecrest Explorations over the next 12 to 18 months, Hans?
That’s a great question and great timeframe. We’re going to basically move forward aggressively with Columbia, looking at multiple new projects to add that will kind of, fill in gaps in the new Fredonia block we’ve signed on in Columbia. We’re going to hire a person that will be our vice-president of explorations to move that program forward aggressively. That [the exploration program] starts with basic geology, geophysics and then eventually drilling in Columbia say after mid-year.
The Bolivian operation is totally dependent on investors. We are waiting for enough funding to start drilling. At this time, we’re trenching, we’ve got a staff of four Bolivian geologists and one senior person [US geologist] that’s going to be oversee exploration on the project, doing trenching, mapping and preparing for drilling once we get the financing.
So, basically you could expect in the next 12 to 18 months, once we get enough funding, we can drill immediately in Bolivia, we’ll be drilling after mid-year in Columbia. In Bolivia, we can have resource calculations by the end of the year on possibly two of our three target areas, one being underground [resource] and two of those being open-pit style resources.
So we’re really ready to move forward aggressively—during the last year and half, funding has been the thing that’s controlled [slowed] the rate of moving forward with any exploration company. We feel really strong about the [Bolivia] project, [because] we’ve had a chance to do a lot of basic geologic work in Bolivia, and we feel very strong about our new acquisitions in Columbia.
http://www.proactiveinvestors.co.uk/companies/news/12730/eaglecrest-explorations-interview-transcript-with-hans-rasmussen-12730.html
Hans Rasmussen: Thanks for having me.
Why is a geophysicist and geologist such as yourself, looking for gold in Bolivia and Columbia?
Well I’ve been in the business for 26 years now and most of my time has been spent in the Americas and I feel very comfortable, I’m almost bilingual and the potential for discovery is going to be in places that have been looked at the least. Two countries that represent that would be Bolivia and Columbia, there are others in South America, but these are two places I feel very comfortable working in. They have high potential for discovery, particularly if you look at the history of production of metals, both of them have 500 years of history of metal production so that’s why I like these places.
What progress has been made at Eaglecrest Exploration’s San Simon gold project in north eastern Bolivia and what ideas do you have about how this project could be commercialised?
I’ve been involved with Eaglecrest since January 2007 and we’ve made very significant progress in understanding how gold is distributed in the known zones of gold mineralisation. That was huge, that was a big turnaround for the company in terms of actually coming closer to a resource calculation. And we were producing gold at the same time as we were drilling on the [Dona Amelia] zone at the project.
So two things have come together there that lead to what we would end up commercialising. Number one is we can find more gold because we know where it is, how it’s located, how to drill it. And number two, we know how to produce it. We know [from our production experience] that it has great metallurgy 85 to 95% of the gold can be recovered because we had a gold processing plant working for almost two years and we were producing a gold concentrate from the rock that we were pulling from the underground.
So commercialisation from my point of view, is selling the asset to a producer. Our goal at Eaglecrest is to be an explorer, to drill out gold resources, to pave the way for a producer to come in and buy the asset and go into production. We’ve only had time, in my three term at Eaglecrest so far, to work less than 20% of the property and within that 20% of the property I feel like we have very strong indications that we have potential for three different areas with economic gold mineralisation. Of course to prove that, we’ve got to drill, that’s the next step for Eaglecrest.
What are your thoughts on operating a mining exploration and development company in Bolivia, Hans?
Going back to the places in the world where there are producers operating, Bolivia is one of those places that producers are operating. I am in very good communications with Coeur d’Alene, who put the San Bartolome mine into production. And if you look at their release last November I think it was, or December, they comment how the government was very supportive. They’re making silver at about C$6 an ounce, which is highly profitable, in a historic district with lots of headaches, you know, where you’ve got lots of people to deal with. They were able to go into production and the government was very supportive.
The same [support from the government has occurred] for some of the other big projects that happened in Bolivia, you looked at the San Cristobal project where Apex silver put that into production with the help of Sumitomo, now Sumitomo is mining there. The latest new project that’s going into production is called Mutun and Jindal, an East Indian Company, will invest C$2.1 Billion to mine half of the Iron ore deposits there. So, it’s a pro-mining culture, I think that mining operations and developments are possible in Bolivia. You just have to have a good relationship with the government, like in any Latin-American country.
What can you tell investors about your recent acquisition, Fredonia, in the Central Cordillera Gold Belt of Columbia?
The Board of Directors have Eaglecrest decided that Columbia was a great place to diversify Eaglecrest in terms of having multiple exploration properties and diversifying in this fantastic gold market that we’re coming into. Columbia, historically has been the largest gold producer in the South America, so that was geologically a great place to think about and just in the last five or six years let’s say, stability and safety of the company has become significantly better than it was even in the late 1990s.
So, we decided, okay this is the place to explore and the Fredonia was selected because it’s close to infrastructure and in and around the Fredonia area you’ve got some resources that have been drilled out that are about 2 million ounces, and you’ve got a couple of historic districts with well over ten million ounces of both historic production and ounces of gold that’s still in the ground. So the Fredonia area for me was a large real estate play, in terms of getting our foot in the door in Columbia, grabbing 18,000 hectares or 180 km² of mineral title in an area that’s highly prospective.
What are your thoughts on operating in Columbia, Hans?
My understanding right now of Columbia, it is a very pro-development culture. Of course we’ve got some examples now of people operating there that will go into production in the near future, like AngloGold-Ashanti at their 12 million ounce La Colosa gold project. And, you’ve got some new drill results from others like Ventana Gold -- that are also kind of a hot topic on the street right now.
Those guys [Anglo] are going to be going into production in the next five years and from what I understand they’ve got great relationships with the government and the government is pro development. So, from what I can tell, gold mining is part of their culture and the mining law is upheld in court. So there’s no question about whether or not you’re going to be able mine, it’s just you’ve got to follow the legal steps in order to achieve the mining permit and things like that along the way.
Eaglecrest Explorations has just closed a non-brokered private placement raising nearly C$580,000, where does this leave the company’s financial situation going forwards, Hans?
Well, at this stage we have a burn rate with our Bolivian operation and our Columbian operation of about $150,000 a month. So if you just do the math on that you’re looking at about 3 months earn in that financing. We open and closed this financing really quickly, because we had an interested investor that was an institutional investor that we wanted to Eaglecrest right away. So that was open and closed before Christmas. And, something that is very difficult to do, literally at the meeting with that investor was somewhere around December 11th and the thing was closed 14 days later.
So, that was a very small [equity] placement compared to what we were seeking but we basically wanted to open and close it for that particular investor. We’re going to continue to look for more financing, we’re going to need about C$4 million a year in terms of total burned, if we want to start drilling in Bolivia, once we start drilling in Columbia then we’re going to have to bulk that up even higher.
When did Sprott Asset Management become investors in Eaglecrest Explorations and has their investment encouraged other institutions to take an interest in the company?
Yes, Sprott Asset Management was the lead order of the CAD$580,000 placement that we just closed. And again, they are interested in getting involved with Eaglecrest, they’ve met management and they like the idea of both Bolivia and Columbia, and gold. Today we’ve basically gotten through the paperwork of the placement and not had a chance to spend much time marketing the fact that Sprott is in. So, we haven’t had a chance to see if their investment will encourage other institutions.
Now, on that same note, in Fall 2007, Doug Casey personally, and his hedge fund and a couple of his employees, invested in Eaglecrest just based on a [personal] tour of our Bolivian operation. And we’ve had institutional investors and that really helped the story. Doug of course, by word of mouth, I’m sure helped get other investors in that bought shares in the market. We will hopefully use Sprott Asset Management for both shares in the market and to encourage his friends and his connections to get involved in terms of more financing for Eaglecrest in the future.
What can investors expect from Eaglecrest Explorations over the next 12 to 18 months, Hans?
That’s a great question and great timeframe. We’re going to basically move forward aggressively with Columbia, looking at multiple new projects to add that will kind of, fill in gaps in the new Fredonia block we’ve signed on in Columbia. We’re going to hire a person that will be our vice-president of explorations to move that program forward aggressively. That [the exploration program] starts with basic geology, geophysics and then eventually drilling in Columbia say after mid-year.
The Bolivian operation is totally dependent on investors. We are waiting for enough funding to start drilling. At this time, we’re trenching, we’ve got a staff of four Bolivian geologists and one senior person [US geologist] that’s going to be oversee exploration on the project, doing trenching, mapping and preparing for drilling once we get the financing.
So, basically you could expect in the next 12 to 18 months, once we get enough funding, we can drill immediately in Bolivia, we’ll be drilling after mid-year in Columbia. In Bolivia, we can have resource calculations by the end of the year on possibly two of our three target areas, one being underground [resource] and two of those being open-pit style resources.
So we’re really ready to move forward aggressively—during the last year and half, funding has been the thing that’s controlled [slowed] the rate of moving forward with any exploration company. We feel really strong about the [Bolivia] project, [because] we’ve had a chance to do a lot of basic geologic work in Bolivia, and we feel very strong about our new acquisitions in Columbia.
http://www.proactiveinvestors.co.uk/companies/news/12730/eaglecrest-explorations-interview-transcript-with-hans-rasmussen-12730.html
Gold returns to $1,090 as US Dollar eases against euro after Obama's State of the Union speech
Gold prices were slightly higher today as the US Dollar eased from five month highs against the euro after the Federal Reserve left the interest rates at near zero and Barack Obama offered an upbeat outlook for the US economy in his State of the Union speech yesterday. Obama laid out his plan to revive the economy and eased his stance on the banks a few days after his pledge to curb risk taking in the banking sector pushed down global stock markets.
The Fed’s decision on interest rates further boosts the attractiveness of gold, which is seen as an investment alternative to the American currency and a hedge against inflation. Gold was pushed down by a string of updates from China over the past few weeks, which has made a few moves to tighten its monetary policy to prevent the economy from overheating, which included raising reserve requirements for some of the country’s largest banks and placing restrictions on lending.
The yellow metal returned to US$1,090/oz after dropping to US$1,085/oz, while silver and platinum reached US$16.62/oz and US$1,516/oz respectively.
Miners mostly rose today. Silver and gold miner Fresnillo (LSE: FRES) led the sector in the FTSE 100 with a 2.4% advance, while platinum miner Lonmin (LSE: LMI) followed with a 1.7% gain and gold producer Randgold Resources (LSE: RRS) posted a marginal gain.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) was flat.
Midcaps were mixed as while Aquarius Plaitnum (LSE: AQP) advanced 3.2% and silver producer Hochschild Mining (LSE: HOC) added less than 1%, gold miner Petropavlovsk (LSE: POG) slipped into the red, posting a loss of less than 1%.
Argentina focused gold explorer Patagonia Gold (AIM: PGD) led the juniors with a 5% gain, while South American based explorer Mariana Resources (AIM: MARL) followed with a 3% climb.
Turkey and Ethiopia operating gold miner Stratex International (AIM: STI) and commodity asset development company Mercator Gold (AIM: MCR) moved in the opposite direction, shedding 9% and 5% respectively. Western Australia operating Norseman Gold (AIM: NGL), Africa focused gold miner Pan African Resources (AIM: PAF) and South Africa focused emerging platinum producer Platmin (AIM: PPN) all declined 3%. http://www.proactiveinvestors.co.uk/companies/news/12727/gold-returns-to-1090-as-us-dollar-eases-against-euro-after-obamas-state-of-the-union-speech-12727.html
The Fed’s decision on interest rates further boosts the attractiveness of gold, which is seen as an investment alternative to the American currency and a hedge against inflation. Gold was pushed down by a string of updates from China over the past few weeks, which has made a few moves to tighten its monetary policy to prevent the economy from overheating, which included raising reserve requirements for some of the country’s largest banks and placing restrictions on lending.
The yellow metal returned to US$1,090/oz after dropping to US$1,085/oz, while silver and platinum reached US$16.62/oz and US$1,516/oz respectively.
Miners mostly rose today. Silver and gold miner Fresnillo (LSE: FRES) led the sector in the FTSE 100 with a 2.4% advance, while platinum miner Lonmin (LSE: LMI) followed with a 1.7% gain and gold producer Randgold Resources (LSE: RRS) posted a marginal gain.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) was flat.
Midcaps were mixed as while Aquarius Plaitnum (LSE: AQP) advanced 3.2% and silver producer Hochschild Mining (LSE: HOC) added less than 1%, gold miner Petropavlovsk (LSE: POG) slipped into the red, posting a loss of less than 1%.
Argentina focused gold explorer Patagonia Gold (AIM: PGD) led the juniors with a 5% gain, while South American based explorer Mariana Resources (AIM: MARL) followed with a 3% climb.
Turkey and Ethiopia operating gold miner Stratex International (AIM: STI) and commodity asset development company Mercator Gold (AIM: MCR) moved in the opposite direction, shedding 9% and 5% respectively. Western Australia operating Norseman Gold (AIM: NGL), Africa focused gold miner Pan African Resources (AIM: PAF) and South Africa focused emerging platinum producer Platmin (AIM: PPN) all declined 3%. http://www.proactiveinvestors.co.uk/companies/news/12727/gold-returns-to-1090-as-us-dollar-eases-against-euro-after-obamas-state-of-the-union-speech-12727.html
Cairn Energy makes further progress in Rajasthan as average oil production reaches 15,430 bopd in Q4
In a pre-close trading update ahead of its full-year results, Cairn Energy said (LSE: CNE) operations at the Mangala Processing Terminal (MPT) in Rajasthan produced an average of 15,430 barrels of oil per day (bopd) in the fourth quarter ended 31 December 2009, and it is currently producing 20,000 bopd.
The FTSE100 oil company said in Greenland, the two rigs it contracted during the year have greatly increased its operational capability and flexibility as it plans to drill up to four exploration wildcat wells in the Baffin Bay Basin, offshore Disko West.
"The delivery of the Rajasthan project with its significant long term production potential underpins the growth strategy of Cairn”, said chief executive Sir Bill Gammell, “we plan to commence our multi-well exploration campaign in West Greenland during the summer of 2010. I also look forward to continuing our exploration drilling activities across other highly prospective parts of Greenland in subsequent years."
In Rajasthan the MPT began production in August 2009. It is designed to process crude oil from the Mangala, Bhagyam and Aishwariya (MBA) fields and once completed it will have the capacity to process 205,000 bopd. Construction and development work is continuing, the pipeline section from MPT to Salaya has been laid and commissioning is in progress. The construction of processing trains Two and Three is ongoing. Upon completion, which is expected by the end of H1 2010, the additional production trains will enable MPT to attain capacity of 125,000 bopd.
According to Cairn, the Mangala development drilling is on schedule, with 45 development wells drilled to date, of which 33 have been completed as producers to support the future ramp-up in production. The well results confirm the quality, extent and high deliverability potential of the Fatehgarh oil reservoirs, Cairn said.
Cairn has also been discussing potential oil sale agreements with the Government of India, with the aim of aligning it’s near term sales volumes with production capacity. The government agreed for private refiners to qualify as additional candidates for MPT offtake. Cairn successfully agreed to supply Mangala crude to Reliance Industries (RIL) at Jamnagar. The current production is being trucked to the Gujarat coast for shipping to RIL and India’s Oil and Natural Gas Corporation (ONGC) subsidiary, Mangalore Refinery and Petrochemicals Ltd.
Two exploration wells are planned for the Rajasthan basin in 2010. In its exploration projects in Greenland, Cairn has secured two ultra-modern offshore drilling rigs, for its summer 2010 multi-well exploration programme at the previously undrilled Baffin Bay, West Disko. The company has also pre-qualified as an operator for the 2010 exploration bidding round in Baffin Bay, bids are to be submitted by 1st May 2010. In Tunisia the company plans to drill an exploration well on the Louza permit in H1. http://www.proactiveinvestors.co.uk/companies/news/12726/cairn-energy-makes-further-progress-in-rajasthan-as-average-oil-production-reaches-15430-bopd-in-q4-12726.html
The FTSE100 oil company said in Greenland, the two rigs it contracted during the year have greatly increased its operational capability and flexibility as it plans to drill up to four exploration wildcat wells in the Baffin Bay Basin, offshore Disko West.
"The delivery of the Rajasthan project with its significant long term production potential underpins the growth strategy of Cairn”, said chief executive Sir Bill Gammell, “we plan to commence our multi-well exploration campaign in West Greenland during the summer of 2010. I also look forward to continuing our exploration drilling activities across other highly prospective parts of Greenland in subsequent years."
In Rajasthan the MPT began production in August 2009. It is designed to process crude oil from the Mangala, Bhagyam and Aishwariya (MBA) fields and once completed it will have the capacity to process 205,000 bopd. Construction and development work is continuing, the pipeline section from MPT to Salaya has been laid and commissioning is in progress. The construction of processing trains Two and Three is ongoing. Upon completion, which is expected by the end of H1 2010, the additional production trains will enable MPT to attain capacity of 125,000 bopd.
According to Cairn, the Mangala development drilling is on schedule, with 45 development wells drilled to date, of which 33 have been completed as producers to support the future ramp-up in production. The well results confirm the quality, extent and high deliverability potential of the Fatehgarh oil reservoirs, Cairn said.
Cairn has also been discussing potential oil sale agreements with the Government of India, with the aim of aligning it’s near term sales volumes with production capacity. The government agreed for private refiners to qualify as additional candidates for MPT offtake. Cairn successfully agreed to supply Mangala crude to Reliance Industries (RIL) at Jamnagar. The current production is being trucked to the Gujarat coast for shipping to RIL and India’s Oil and Natural Gas Corporation (ONGC) subsidiary, Mangalore Refinery and Petrochemicals Ltd.
Two exploration wells are planned for the Rajasthan basin in 2010. In its exploration projects in Greenland, Cairn has secured two ultra-modern offshore drilling rigs, for its summer 2010 multi-well exploration programme at the previously undrilled Baffin Bay, West Disko. The company has also pre-qualified as an operator for the 2010 exploration bidding round in Baffin Bay, bids are to be submitted by 1st May 2010. In Tunisia the company plans to drill an exploration well on the Louza permit in H1. http://www.proactiveinvestors.co.uk/companies/news/12726/cairn-energy-makes-further-progress-in-rajasthan-as-average-oil-production-reaches-15430-bopd-in-q4-12726.html
Sky HD drives strong H1 performance for BSkyB, 3D-TV to launch in April 2010
FTSE100 media group British Sky Broadcasting Group (LSE: BSY) said a good second quarter performance completed a strong first half. In the six months ended 31 December 2009, total group revenue increased 10% to £2.8 billion, including a 16% increase in retail subscription revenues to £2.2 billion.
Sky reported pretax profits of £358 million, up from £276 million in the comparative period the previous year. Basic earnings per share grew 54% to 14.70 pence. The group also announced a 5% increase to the interim dividend to 7.875 pence per share.
"It has been another good quarter in what remains a tough environment, with more customers joining Sky and strong demand across our entire product range”, chief executive Jeremy Darroch said, "Our financial results were also strong. Total revenue increased by 10% in the first half of the year and, by focusing on operational efficiency, we have been able to absorb the upfront cost of meeting demand and deliver 11% growth in EPS.”
The broadcaster’s strong performance was driven by sales of its High-Definition (HD) television service. “The standout performance came in high definition TV with almost half a million customers choosing Sky+ HD ”, Darroch commented. During the half, Sky+ HD subscriptions surpassed the two million household mark, with net additions more than double the previous year at 482,000. The company has begun to sell the HD service as standard to new customers and has added more HD content and HD channels to customers.
In April 2010, Sky plans to launch Sky 3D, which will be Europe's first dedicated 3D TV channel. Sky 3D will work with all existing Sky+ HD boxes and initially it will only be available to Sky’s commercial customers, with a residential roll-out planned as 3D-TV sets become more widely available. http://www.proactiveinvestors.co.uk/companies/news/12725/sky-hd-drives-strong-h1-performance-for-bskyb-3d-tv-to-launch-in-april-2010-12725.html
Sky reported pretax profits of £358 million, up from £276 million in the comparative period the previous year. Basic earnings per share grew 54% to 14.70 pence. The group also announced a 5% increase to the interim dividend to 7.875 pence per share.
"It has been another good quarter in what remains a tough environment, with more customers joining Sky and strong demand across our entire product range”, chief executive Jeremy Darroch said, "Our financial results were also strong. Total revenue increased by 10% in the first half of the year and, by focusing on operational efficiency, we have been able to absorb the upfront cost of meeting demand and deliver 11% growth in EPS.”
The broadcaster’s strong performance was driven by sales of its High-Definition (HD) television service. “The standout performance came in high definition TV with almost half a million customers choosing Sky+ HD ”, Darroch commented. During the half, Sky+ HD subscriptions surpassed the two million household mark, with net additions more than double the previous year at 482,000. The company has begun to sell the HD service as standard to new customers and has added more HD content and HD channels to customers.
In April 2010, Sky plans to launch Sky 3D, which will be Europe's first dedicated 3D TV channel. Sky 3D will work with all existing Sky+ HD boxes and initially it will only be available to Sky’s commercial customers, with a residential roll-out planned as 3D-TV sets become more widely available. http://www.proactiveinvestors.co.uk/companies/news/12725/sky-hd-drives-strong-h1-performance-for-bskyb-3d-tv-to-launch-in-april-2010-12725.html
Hoodless Brennan daily smallcap newsflash including Park Plaza Hotels, Titon Holdings, Haynes Publishing Group and others
Pixel Interactive Media (PIXL, 11p, £4.25m), the Asia focussed online advertising sales company, will probably see 2010 revenues and profits to come in materially lower than PBT and EPS expectations of £0.62m and 1.13p respectively. This is driven by one of its Web site partners changing its business model from 1 March 2010. The level of the impact is not fully known at this stage. The share price today has already fallen by 12%. The strong balance sheet encourages us to reduce our Speculative Buy recommendation to a HOLD.
Park Plaza Hotels (PPH, 129.5p, £52.9m), the owner, operator and franchisor of hotels in Europe, the Middle East and Africa, reports trading for the year ended 31 December 2009, is in line with market expectations of pre-tax losses of £8.04m and EPS of -19.3p. As expected, 2009 has been tough, driven by the economic downturn. Sales fell by c.14% to €77.4m (2008: €90.3m). Weak sterling against the euro had an adverse impact on the sales. On a constant currency basis, RevPAR for our UK hotels was £97.30 (2008:£101.80). Whilst occupancy was flat at 84.8% (2008: 85.0%), average room rates came under pressure. On a reported basis, RevPAR for our UK hotels was €109.60 (2008: €127.50). In Netherlands, both RevPAR and occupancy were down. We do not foresee 2010 to be worse than the previous year and note the market will remain challenging. Weak sterling will continue to have adverse effects on the bottom line. We initiate with a HOLD.
Sepura (SEPU, 43.25p, £59.0m), the global leader in the design, development and supply of TETRA digital radios used predominantly by emergency services, reports an IMS from 1 October 2009 to 27 January 2010. Trading for the year ending 31 March 2010 is line with PBT expectations of £9.5m and EPS of 5.7p. The group are winning new business. They have secured further replacement business from UK customers refreshing their fleets. The stock trades on a prospective PER of 7.6x. We retain our HOLD recommendation.
Baobab Resources (BAO, 8.9p, £14.1m), the iron ore explorer announced positive results from rock chip sampling at the Singore East deposit of its Tete magnetite-ilmenite project. Vanadium concentrate values are consistently 25% higher than those reported from the Massamba Group area. Singore East has experienced no previous exploration and the company is rapidly developing its knowledge base, looking to drill scout holes as soon as practicable. The Massamba area remains focus of 2010 drilling campaign. In 2009 the company announced the Massamba target is for 47.7Mt magnetite-ilmenite Inferred Resource and 400 to 700Mt exploration. Drilling last year intersected significant widths of primary and secondary styles of mineralisation and provided valuable geological and structural information with analytical results expected in early February 2010. Progress looks sound. SPECULATIVE BUY
Titon Holdings (TON, 39p, £4.1m), the UK ventilation systems and hardware manufacturer, reports UK sales for the 3 months to 31 December 2009 fell by 2.2% on the same period last year. The improvements in UK construction experienced in Q409 have now stalled. However, growth in the overseas market notably via our South Korean 'Joint Venture' has led to total Group turnover being 9.0% higher for the 3 month period. Net cash at the end of December remained at £3.0m – a good performance. The group is well placed for the upturn in the UK construction industry. A strong balance sheet backed by property of £2.6m and net cash of £3.0m. Tangible NAV of £9.43m exceeds the current market capitalisation of £4.1m. The strong asset backing encourages us to initiate with a BUY recommendation with a target price of 80p.
Tribal Group (TRB, 83.25p, £79.9m), the provider of professional services to the public sector in the UK and worldwide, reports underlying PBT for the year ended 31 December will be slightly ahead of the previous year. A lower tax charge will lead to higher EPS. The group has a strong order book, with 42% of 2010 revenue already committed and total committed revenue of £217m (2008: £139m). This provides us with confidence for the current financial year. The group continue to win new business. Total cost savings are expected to be higher than previously thought, with savings of no less than £7.5m, of which c. £5m will be realised in 2010. Exceptional costs of £2.5m are anticipated in the current year. Net debt stood at £26m at the end of December 2009, with total banking facilities of £46m. Cuts in public spending may have a negative impact on Tribal, but management believe it will create opportunities to offer innovative and cost-effective solutions. Assuming 2010 earnings come in towards the lower end of estimates, EPS of 11.8p, the stock trades on reasonable 7x. On this basis, we retain our BUY recommendation, but concerns over reductions in public spending, encourages us to reduce our target price from 100p to 93p.
China Shoto (CHNS, 332p) the largest Chinese producer of back up batteries gives a positive profits warning, for the year ended 31 December 2009, with PBT expected to be materially ahead of expectations. This was “due to a good grasp of the linkage scheme between the fluctuating lead price and the sales price to major customers and effective management of risk”, so we are unsure as to the quality of the increased earnings. Its broker estimates 12.5m PBT, 47p EPS and 5p DPS. We would anticipate upgrades of anywhere between 10-20%. Taking the mid range would result in PBT of £14.4m and EPS of 54.6p meaning that the rating remains broadly the same at around 6x earnings. As one of our key picks back in June, the company has surpassed our earlier price target and we upgrade this to 354p which would reflect only 6.5x rating. A target price within 10% of the current mid makes this a HOLD for now. However, there is scope for further upside should the company produce a 15% or greater profits uplift.
Intandem Films (IFM, 1.38p, £1.14m), the international film group, has had a positive start to the year. The group has completed one film, The Kid, which is expected to show at the Berlin Film festival in February. Four further films are in post production and are expected to complete by May. The group are in advanced negotiations to settle the £5.7m loan. We therefore upgrade our Sell recommendation to a HOLD.
Advanced Medical Solutions Group (AMS, 32.75p, £49.4m) reports Cardinal Health, a major US healthcare services company, is marketing and distributing the group’s LiquiBand™ tropical skin adhesive range to US to hospitals, care centres, and surgeries. The agreement is in line with the group’s strategy. The stock trades on a prospective PER of 11.1x. The share price has risen 20% since our Buy recommendation on 9/12/09, almost achieving our target price of 35p. We retain our target price and move our recommendation to a HOLD. We believe further marketing and distribution deals will help sustain the share price.
Densitron Technologies (DSN, 4.75p, £3.3m) has returned to profitability in H2 2009 and the group expects to make a small profit for the year. The £1.1m of cash received following the capital reduction in Evervision and tighter working capital has led the group to end the year with a strong financial position. We retain our HOLD recommendation.
Haynes Publishing Group (HYNS, 222.5p, £16.4m), a worldwide market leader in the production and sale of automotive and motorcycle repair manuals, reports interims to 30 November 2009. Despite a marginal 2% decline in revenues to £16.0m (H109: £16.4m), improvement in gross margins and a 5% reduction in overheads has led to pre-tax profits to rise by 12% to £2.8m (H109: £2.5m) and EPS by 10% to 11.7p (H109: 10.6p). The group ended November with net cash of £2.4m (H109: net debt of £1.4m).This represents the strong cash generation over the period. As a consequence of lower market yields and UK gilts, the pension deficit has increased to £15.1m (2009: £10.4m). Trading in Q2 was stronger than Q1, especially in the US. The US market continues to experience difficulties with key customers running stock levels at an all time low. However, the weak sterling against the dollar and the euro has translated into an improvement in revenues by £1.0m and PBT by £0.2m. We believe this trend will continue to benefit the group for the remainder of the year. The Australian market is performing well, with sales up 8% on H209. The outlook for the remainder of the year remains challenging. The market forecasts PBT of £7.1m, EPS of 29.2p and DPS of 15.5p in 2010 and PBT of £7.3m, EPS of 29.83p and DPS of 15.5p in 2011. The stock trades on a prospective 2010 PER of 7.6x and 7.5x in 2011 with a compelling yield of 7%. A dividend cover of 1.9x and net cash of £2.8m suggests the yield is sustainable. Despite the group achieving our target price of 222p from 10/09/09, we retain our BUY recommendation on a yield basis and increase our target price to 250p.
Nexus Management (NXS, 0.55p, 5.73m) Final Results - Turnover increased 43% to £5.5m (2008: £3.8m); Nerd Force & Resilience contributed c.80% of the increase in turnover. As we signalled in November there was a large impairment of value of shareholding and loans in PD Financial and Resilience. The group reported a £4.3m operating and £4.55m pre tax loss including a host of exceptionals though underlying EBIT loss of c.600k and pre tax of c.£849k are the relevant figures. Despite an unqualified statement from the auditors cash resources look thin at £164k with net debt around £753k, including related party loans. However with positive sales momentum, the group projects that Resilience which lost £1m and Nerd Force which produced modest losses will return to profitability this year. For Nerd point last year’s poor performance is attributed to the focus on rapid roll out rather than the quality of franchisees which has resulted in bad debts. The focus has been shifted to identify higher quality franchisee candidates which should yield more reliable growth and Nerd Force has been rolled out to the UK where sales have started slowly but where momentum is expected to pick up. Resilience Technology is improving cash collection but trading remains tough, with disappointing sales even into this year, the focus on improving costs should aid performance but the operational outlook is not expected to improve until H2. The Nerd Force offering is intuitive and the company still offers speculative attractions, though these need to be offset against our concerns over financing. Recommendation under review.
Serabi (SRB, 1.6p, £18.4m) gave its update this morning confirming plans for its 2010 exploration programme. It is now underway with its programme aimed at increasing Palito's gold resource to above 1.5m ounces. First pass ground geophysics (electromagnetic and induced polarization) will be undertaken on the 10 targets closest to the mine site during the current wet season ending April. At the same time, it will conduct shallow (<10m depth) auger drilling to generate geochemical data below the surface for more accurate results. Results will then guide a 4,000- 5,000m diamond drill programme planned to commence in July. The exploration budget is c.US$1.7m. The summary of exploration activities gives a provides a good indication of potential newsflow; Jan to may - geophysics on anomalies 1 to 10; April to June - geophysical interpretation; July to September - diamond drilling of anomalies; April to September - deep geochemistry - augur anomalies 1-10; October to December -prospecting anomalies. SPECULATIVE BUY
Deltex Medical (DEMG, 14.25p, £18.09m), the leader in oesophageal Doppler monitoring - measures blood flows in the central circulation, reports the publication of a new study confirms the importance of CardioQ-ODM guided fluid management for patients undergoing moderate as well as major surgery. The market has recently downgraded 2010 estimates from PBT of £0.06m and EPS of 0.05p to pre-tax losses of £0.4m and EPS of -0.32p. We retain our HOLD recommendation.
http://www.proactiveinvestors.co.uk/companies/news/12722/hoodless-brennan-daily-smallcap-newsflash-including-park-plaza-hotels-titon-holdings-haynes-publishing-group-and-others--12722.html
Park Plaza Hotels (PPH, 129.5p, £52.9m), the owner, operator and franchisor of hotels in Europe, the Middle East and Africa, reports trading for the year ended 31 December 2009, is in line with market expectations of pre-tax losses of £8.04m and EPS of -19.3p. As expected, 2009 has been tough, driven by the economic downturn. Sales fell by c.14% to €77.4m (2008: €90.3m). Weak sterling against the euro had an adverse impact on the sales. On a constant currency basis, RevPAR for our UK hotels was £97.30 (2008:£101.80). Whilst occupancy was flat at 84.8% (2008: 85.0%), average room rates came under pressure. On a reported basis, RevPAR for our UK hotels was €109.60 (2008: €127.50). In Netherlands, both RevPAR and occupancy were down. We do not foresee 2010 to be worse than the previous year and note the market will remain challenging. Weak sterling will continue to have adverse effects on the bottom line. We initiate with a HOLD.
Sepura (SEPU, 43.25p, £59.0m), the global leader in the design, development and supply of TETRA digital radios used predominantly by emergency services, reports an IMS from 1 October 2009 to 27 January 2010. Trading for the year ending 31 March 2010 is line with PBT expectations of £9.5m and EPS of 5.7p. The group are winning new business. They have secured further replacement business from UK customers refreshing their fleets. The stock trades on a prospective PER of 7.6x. We retain our HOLD recommendation.
Baobab Resources (BAO, 8.9p, £14.1m), the iron ore explorer announced positive results from rock chip sampling at the Singore East deposit of its Tete magnetite-ilmenite project. Vanadium concentrate values are consistently 25% higher than those reported from the Massamba Group area. Singore East has experienced no previous exploration and the company is rapidly developing its knowledge base, looking to drill scout holes as soon as practicable. The Massamba area remains focus of 2010 drilling campaign. In 2009 the company announced the Massamba target is for 47.7Mt magnetite-ilmenite Inferred Resource and 400 to 700Mt exploration. Drilling last year intersected significant widths of primary and secondary styles of mineralisation and provided valuable geological and structural information with analytical results expected in early February 2010. Progress looks sound. SPECULATIVE BUY
Titon Holdings (TON, 39p, £4.1m), the UK ventilation systems and hardware manufacturer, reports UK sales for the 3 months to 31 December 2009 fell by 2.2% on the same period last year. The improvements in UK construction experienced in Q409 have now stalled. However, growth in the overseas market notably via our South Korean 'Joint Venture' has led to total Group turnover being 9.0% higher for the 3 month period. Net cash at the end of December remained at £3.0m – a good performance. The group is well placed for the upturn in the UK construction industry. A strong balance sheet backed by property of £2.6m and net cash of £3.0m. Tangible NAV of £9.43m exceeds the current market capitalisation of £4.1m. The strong asset backing encourages us to initiate with a BUY recommendation with a target price of 80p.
Tribal Group (TRB, 83.25p, £79.9m), the provider of professional services to the public sector in the UK and worldwide, reports underlying PBT for the year ended 31 December will be slightly ahead of the previous year. A lower tax charge will lead to higher EPS. The group has a strong order book, with 42% of 2010 revenue already committed and total committed revenue of £217m (2008: £139m). This provides us with confidence for the current financial year. The group continue to win new business. Total cost savings are expected to be higher than previously thought, with savings of no less than £7.5m, of which c. £5m will be realised in 2010. Exceptional costs of £2.5m are anticipated in the current year. Net debt stood at £26m at the end of December 2009, with total banking facilities of £46m. Cuts in public spending may have a negative impact on Tribal, but management believe it will create opportunities to offer innovative and cost-effective solutions. Assuming 2010 earnings come in towards the lower end of estimates, EPS of 11.8p, the stock trades on reasonable 7x. On this basis, we retain our BUY recommendation, but concerns over reductions in public spending, encourages us to reduce our target price from 100p to 93p.
China Shoto (CHNS, 332p) the largest Chinese producer of back up batteries gives a positive profits warning, for the year ended 31 December 2009, with PBT expected to be materially ahead of expectations. This was “due to a good grasp of the linkage scheme between the fluctuating lead price and the sales price to major customers and effective management of risk”, so we are unsure as to the quality of the increased earnings. Its broker estimates 12.5m PBT, 47p EPS and 5p DPS. We would anticipate upgrades of anywhere between 10-20%. Taking the mid range would result in PBT of £14.4m and EPS of 54.6p meaning that the rating remains broadly the same at around 6x earnings. As one of our key picks back in June, the company has surpassed our earlier price target and we upgrade this to 354p which would reflect only 6.5x rating. A target price within 10% of the current mid makes this a HOLD for now. However, there is scope for further upside should the company produce a 15% or greater profits uplift.
Intandem Films (IFM, 1.38p, £1.14m), the international film group, has had a positive start to the year. The group has completed one film, The Kid, which is expected to show at the Berlin Film festival in February. Four further films are in post production and are expected to complete by May. The group are in advanced negotiations to settle the £5.7m loan. We therefore upgrade our Sell recommendation to a HOLD.
Advanced Medical Solutions Group (AMS, 32.75p, £49.4m) reports Cardinal Health, a major US healthcare services company, is marketing and distributing the group’s LiquiBand™ tropical skin adhesive range to US to hospitals, care centres, and surgeries. The agreement is in line with the group’s strategy. The stock trades on a prospective PER of 11.1x. The share price has risen 20% since our Buy recommendation on 9/12/09, almost achieving our target price of 35p. We retain our target price and move our recommendation to a HOLD. We believe further marketing and distribution deals will help sustain the share price.
Densitron Technologies (DSN, 4.75p, £3.3m) has returned to profitability in H2 2009 and the group expects to make a small profit for the year. The £1.1m of cash received following the capital reduction in Evervision and tighter working capital has led the group to end the year with a strong financial position. We retain our HOLD recommendation.
Haynes Publishing Group (HYNS, 222.5p, £16.4m), a worldwide market leader in the production and sale of automotive and motorcycle repair manuals, reports interims to 30 November 2009. Despite a marginal 2% decline in revenues to £16.0m (H109: £16.4m), improvement in gross margins and a 5% reduction in overheads has led to pre-tax profits to rise by 12% to £2.8m (H109: £2.5m) and EPS by 10% to 11.7p (H109: 10.6p). The group ended November with net cash of £2.4m (H109: net debt of £1.4m).This represents the strong cash generation over the period. As a consequence of lower market yields and UK gilts, the pension deficit has increased to £15.1m (2009: £10.4m). Trading in Q2 was stronger than Q1, especially in the US. The US market continues to experience difficulties with key customers running stock levels at an all time low. However, the weak sterling against the dollar and the euro has translated into an improvement in revenues by £1.0m and PBT by £0.2m. We believe this trend will continue to benefit the group for the remainder of the year. The Australian market is performing well, with sales up 8% on H209. The outlook for the remainder of the year remains challenging. The market forecasts PBT of £7.1m, EPS of 29.2p and DPS of 15.5p in 2010 and PBT of £7.3m, EPS of 29.83p and DPS of 15.5p in 2011. The stock trades on a prospective 2010 PER of 7.6x and 7.5x in 2011 with a compelling yield of 7%. A dividend cover of 1.9x and net cash of £2.8m suggests the yield is sustainable. Despite the group achieving our target price of 222p from 10/09/09, we retain our BUY recommendation on a yield basis and increase our target price to 250p.
Nexus Management (NXS, 0.55p, 5.73m) Final Results - Turnover increased 43% to £5.5m (2008: £3.8m); Nerd Force & Resilience contributed c.80% of the increase in turnover. As we signalled in November there was a large impairment of value of shareholding and loans in PD Financial and Resilience. The group reported a £4.3m operating and £4.55m pre tax loss including a host of exceptionals though underlying EBIT loss of c.600k and pre tax of c.£849k are the relevant figures. Despite an unqualified statement from the auditors cash resources look thin at £164k with net debt around £753k, including related party loans. However with positive sales momentum, the group projects that Resilience which lost £1m and Nerd Force which produced modest losses will return to profitability this year. For Nerd point last year’s poor performance is attributed to the focus on rapid roll out rather than the quality of franchisees which has resulted in bad debts. The focus has been shifted to identify higher quality franchisee candidates which should yield more reliable growth and Nerd Force has been rolled out to the UK where sales have started slowly but where momentum is expected to pick up. Resilience Technology is improving cash collection but trading remains tough, with disappointing sales even into this year, the focus on improving costs should aid performance but the operational outlook is not expected to improve until H2. The Nerd Force offering is intuitive and the company still offers speculative attractions, though these need to be offset against our concerns over financing. Recommendation under review.
Serabi (SRB, 1.6p, £18.4m) gave its update this morning confirming plans for its 2010 exploration programme. It is now underway with its programme aimed at increasing Palito's gold resource to above 1.5m ounces. First pass ground geophysics (electromagnetic and induced polarization) will be undertaken on the 10 targets closest to the mine site during the current wet season ending April. At the same time, it will conduct shallow (<10m depth) auger drilling to generate geochemical data below the surface for more accurate results. Results will then guide a 4,000- 5,000m diamond drill programme planned to commence in July. The exploration budget is c.US$1.7m. The summary of exploration activities gives a provides a good indication of potential newsflow; Jan to may - geophysics on anomalies 1 to 10; April to June - geophysical interpretation; July to September - diamond drilling of anomalies; April to September - deep geochemistry - augur anomalies 1-10; October to December -prospecting anomalies. SPECULATIVE BUY
Deltex Medical (DEMG, 14.25p, £18.09m), the leader in oesophageal Doppler monitoring - measures blood flows in the central circulation, reports the publication of a new study confirms the importance of CardioQ-ODM guided fluid management for patients undergoing moderate as well as major surgery. The market has recently downgraded 2010 estimates from PBT of £0.06m and EPS of 0.05p to pre-tax losses of £0.4m and EPS of -0.32p. We retain our HOLD recommendation.
http://www.proactiveinvestors.co.uk/companies/news/12722/hoodless-brennan-daily-smallcap-newsflash-including-park-plaza-hotels-titon-holdings-haynes-publishing-group-and-others--12722.html
Crude futures inch higher after falling on distillate inventories update, energy stocks rise
Crude futures were slightly higher today after extending losses on Wednesday despite an unexpected drop in crude inventories, which was revealed by the US Department of Energy (DoE) in its weekly update. Oil stockpiles fell 3.9 million barrels last week, an even larger decrease than the 2.2 million barrel draw reported by the American Petroleum Institute (API) on Tuesday, while analysts were expecting an increase of less than 1 million barrels.
Meanwhile, the Energy Information Administration said that gasoline stockpiles were up 2 million barrels, which was a greater than expected increase, while distillate stocks rose by 0.4 million barrels instead of the decline of 1.8 million barrels projected by Platts. The decline in distillate stocks reflects a weaker demand for heating oil, which was the main driver behind crude's recent surge, which saw prices reach nearly $84/barrel.
The oil prices were supported by today’s positive movements in global stock markets after yesterday’s late rally on Wall Street after the Federal Reserve almost unanimously decided against raising the currently ultra low levels boosted Asian and European stocks.
March Brent Crude rose to US$72.82/barrel, while US light, sweet crude returned above US$74 and stood at US$74.30/barrel in mid afternoon.
Blue chip energy stocks were mixed today. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) posted insignificant losses, while BG Group (LSE: BG) and Cairn Energy (LSE: CNE) rose marginally and Tullow Oil (LSE: TLW) took the lead with a 2% climb.
Oil and gas service companies Amec (LSE: AMEC) and Petrofac (LSE: PFC) did better, climbing 1% and 1.5% respectively.
All midcap oil and gas producers were higher today with the sole exception of Salamander Energy (LSE: SMDR), which made little headway.
Melrose Resources (LSE: MRS) led the pack, advancing 5.2%, Dragon Oil (LSE: DGO) followed with a 3% gain, JKX Oil and Gas (LSE: JKX) and Premier Oil (LSE: PMO) were up 2%, Heritage Oil (LSE: HOIL) added 1.5% and Dana Petroleum (LSE: DNX) tacked on 1%, as did Soco International (LSE: SIA).
Wood Group (LSE: WG) moved along with a 1% gain, while fellow services company Wellstream Holdings (LSE: WSM) was flat.
North Sea explorers Xcite Energy (AIM: XEL) was one of the top performers in the sector, advancing 13%. Europe focused oil and gas developer Ascent Resources (AIM: AST) followed with a 7% gain and Eastern Europe focused junior Aurelian Oil & Gas (AIM: AUL) added 3.5%.
Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO), North America focused oil & gas junior Pantheon Resources (AIM: PANR) and Gulfsands Petroleum (AIM: GPX) headed in the opposite direction, shedding 8%, 5% and 3.5% respectively. http://www.proactiveinvestors.co.uk/companies/news/12723/crude-futures-inch-higher-after-falling-on-distillate-inventories-update-energy-stocks-rise-12723.html
Meanwhile, the Energy Information Administration said that gasoline stockpiles were up 2 million barrels, which was a greater than expected increase, while distillate stocks rose by 0.4 million barrels instead of the decline of 1.8 million barrels projected by Platts. The decline in distillate stocks reflects a weaker demand for heating oil, which was the main driver behind crude's recent surge, which saw prices reach nearly $84/barrel.
The oil prices were supported by today’s positive movements in global stock markets after yesterday’s late rally on Wall Street after the Federal Reserve almost unanimously decided against raising the currently ultra low levels boosted Asian and European stocks.
March Brent Crude rose to US$72.82/barrel, while US light, sweet crude returned above US$74 and stood at US$74.30/barrel in mid afternoon.
Blue chip energy stocks were mixed today. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) posted insignificant losses, while BG Group (LSE: BG) and Cairn Energy (LSE: CNE) rose marginally and Tullow Oil (LSE: TLW) took the lead with a 2% climb.
Oil and gas service companies Amec (LSE: AMEC) and Petrofac (LSE: PFC) did better, climbing 1% and 1.5% respectively.
All midcap oil and gas producers were higher today with the sole exception of Salamander Energy (LSE: SMDR), which made little headway.
Melrose Resources (LSE: MRS) led the pack, advancing 5.2%, Dragon Oil (LSE: DGO) followed with a 3% gain, JKX Oil and Gas (LSE: JKX) and Premier Oil (LSE: PMO) were up 2%, Heritage Oil (LSE: HOIL) added 1.5% and Dana Petroleum (LSE: DNX) tacked on 1%, as did Soco International (LSE: SIA).
Wood Group (LSE: WG) moved along with a 1% gain, while fellow services company Wellstream Holdings (LSE: WSM) was flat.
North Sea explorers Xcite Energy (AIM: XEL) was one of the top performers in the sector, advancing 13%. Europe focused oil and gas developer Ascent Resources (AIM: AST) followed with a 7% gain and Eastern Europe focused junior Aurelian Oil & Gas (AIM: AUL) added 3.5%.
Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO), North America focused oil & gas junior Pantheon Resources (AIM: PANR) and Gulfsands Petroleum (AIM: GPX) headed in the opposite direction, shedding 8%, 5% and 3.5% respectively. http://www.proactiveinvestors.co.uk/companies/news/12723/crude-futures-inch-higher-after-falling-on-distillate-inventories-update-energy-stocks-rise-12723.html
Serabi Mining starts exploration programme at Palito gold project in Brazil
Serabi Mining (AIM: SRB) said that the geophysical and geochemical exploration programme on 18 targets at its Palito gold project in Brazil was now underway with an objective of expanding its gold resource above 1.5 Moz (million ounces) from the present 630,000 oz of gold equivalent.
In 2008 the company undertook an airborne geophysical survey over the Palito project area, which, combined with other exploration data defined at least eighteen priority targets which exhibit similar geophysical responses to the existing Palito mine area. The company is focused on exploring these targets to expand its global resource.
First pass ground geophysics will be undertaken on the ten targets closest to the mine site during the current wet season, which ends in April, with the results set to be used to guide a 4,000 to 5,000 metre diamond drill programme that is planned to commence in July.
The diamond drilling and deep geochemistry on promising anomalies are set to be wrapped up in September this year, while the prospecting of anomalies will take place from October to December this year.
“With a reduced burn rate, highly prospective targets and an established small scale oxide mining operation, Serabi is well positioned to see significant further progress in 2010,” said chief executive Mike Hodgson.
The exploration budget for the Palito project in 2010 is approximately US$1.7 million.
The mine has produced 110,000 gold equivalent ounces since 2005 and has a gold equivalent JORC resource of 660,000 oz (ounces) of which 187,000 oz is in the reserve category at a grade of 7.3 g/t (grammes per tonne) of gold. http://www.proactiveinvestors.co.uk/companies/news/12721/serabi-mining-starts-exploration-programme-at-palito-gold-project-in-brazil-12721.html
In 2008 the company undertook an airborne geophysical survey over the Palito project area, which, combined with other exploration data defined at least eighteen priority targets which exhibit similar geophysical responses to the existing Palito mine area. The company is focused on exploring these targets to expand its global resource.
First pass ground geophysics will be undertaken on the ten targets closest to the mine site during the current wet season, which ends in April, with the results set to be used to guide a 4,000 to 5,000 metre diamond drill programme that is planned to commence in July.
The diamond drilling and deep geochemistry on promising anomalies are set to be wrapped up in September this year, while the prospecting of anomalies will take place from October to December this year.
“With a reduced burn rate, highly prospective targets and an established small scale oxide mining operation, Serabi is well positioned to see significant further progress in 2010,” said chief executive Mike Hodgson.
The exploration budget for the Palito project in 2010 is approximately US$1.7 million.
The mine has produced 110,000 gold equivalent ounces since 2005 and has a gold equivalent JORC resource of 660,000 oz (ounces) of which 187,000 oz is in the reserve category at a grade of 7.3 g/t (grammes per tonne) of gold. http://www.proactiveinvestors.co.uk/companies/news/12721/serabi-mining-starts-exploration-programme-at-palito-gold-project-in-brazil-12721.html
Norseman Gold expects a steady increase in production in second half
Australia operating Norseman Gold (AIM, ASX: NGL) said it expects to increase production steadily in the second half of the financial year and reported that during the second quarter to 31 December 2009, production totalled 15,721 ounces at a cost of A$933 (approx US$840) per ounce, generating a profit of A$1.2 million in Q2.
Of the total, 7,442 ounces were extracted from the Bullen mine and 8,251 ounces from the Harlequin mine.
Norseman also began the development of its OK Decline mine during the period, with the first development ore delivered to the surface stockpile and treated this month.
The company said that production continued in lower grade areas, with the focus remaining on capital development to open up areas for future stoping. The un-hedged gold mining operation achieved prices between A$1,136 and A$1,308 per ounce during the quarter, with an average price of A$1,203 per ounce.
Norseman expects the production profile to improve steadily for the next two quarters until Bullen and Harlequin are at the planned levels by June 2010, the end of the current financial year. At which point the company expects production will proceed in a steady state.
At the OK Decline, the delivery of the first development gold from its third mine under the ‘fill the mill’ programme, demonstrates the company's ability to find and develop gold assets within the project area, Norseman said.
The development ore was mined from the Star of Erin orebody. The initial schedule forecasts 5,000 ounces being mined in the current 2009/10 financial year and 30,000 ounces being mined in the 2010/11 financial year. Norseman expects that the OK Decline will be ramped up and operating in steady state by June 2010. Furthermore the company believes that the three mines feeding into the Phoenix treatment plant will offset some of the Norseman project’s production fluctuations.
As a result of the lower-grade production profile during the quarter, net direct cash operating costs increased to A$933 per ounce, which was above previous forecasts of between A$720 to A$780. However the company expects full year costs for the Bullen, OK and Harlequin Declines to reduce to between A$800 and A$850 per ounce as the production profile returns to required levels.
Forecasts for the 2010/11 financial year remain unchanged at 105,000 to 110,000 ounces recovered at cash costs of between A$670 and A$730 per ounce of gold. Norseman said that total operating costs were close to budgeted levels.
Norseman Gold invested A$11.5 million during the quarter, a major part of the capital expenditure was on equipment and infrastructure for the OK Decline mine development. Significant capital expenditures were made on mobile equipment (A$6.8 million), exploration (A$2.0 million) and capitalised mine development (A$2.7million). The company completed the camp expansion during the quarter. Forty new self contained rooms were placed on-site in the main accommodation camp, which were occupied by the end of the quarter.
At the end of the period, cash balances totalled A$24.9 million, with approximately A$5.5 million of this balance committed to environmental bonds. Additionally the company paid its first income tax payment of A$2.9 million during the quarter.
The company continues to make progress on its exploration programme. De-watering at the North Royal Open Pit has commenced, 21% of the water was pumped out by the end of the quarter. Elsewhere the first stage drilling programme was completed at the southern end of the open pit. A preliminary resource estimate for the Perch Reef deposit at the Harlequin Decline, returned an inferred resource of 48,000 tonnes at 41.0 g/t gold for 63,000 ounces. Norseman Gold expects a further improvement in the confidence level, once further drilling and development is undertaken. http://www.proactiveinvestors.co.uk/companies/news/12719/norseman-gold-expects-a-steady-increase-in-production-in-second-half--12719.html
Of the total, 7,442 ounces were extracted from the Bullen mine and 8,251 ounces from the Harlequin mine.
Norseman also began the development of its OK Decline mine during the period, with the first development ore delivered to the surface stockpile and treated this month.
The company said that production continued in lower grade areas, with the focus remaining on capital development to open up areas for future stoping. The un-hedged gold mining operation achieved prices between A$1,136 and A$1,308 per ounce during the quarter, with an average price of A$1,203 per ounce.
Norseman expects the production profile to improve steadily for the next two quarters until Bullen and Harlequin are at the planned levels by June 2010, the end of the current financial year. At which point the company expects production will proceed in a steady state.
At the OK Decline, the delivery of the first development gold from its third mine under the ‘fill the mill’ programme, demonstrates the company's ability to find and develop gold assets within the project area, Norseman said.
The development ore was mined from the Star of Erin orebody. The initial schedule forecasts 5,000 ounces being mined in the current 2009/10 financial year and 30,000 ounces being mined in the 2010/11 financial year. Norseman expects that the OK Decline will be ramped up and operating in steady state by June 2010. Furthermore the company believes that the three mines feeding into the Phoenix treatment plant will offset some of the Norseman project’s production fluctuations.
As a result of the lower-grade production profile during the quarter, net direct cash operating costs increased to A$933 per ounce, which was above previous forecasts of between A$720 to A$780. However the company expects full year costs for the Bullen, OK and Harlequin Declines to reduce to between A$800 and A$850 per ounce as the production profile returns to required levels.
Forecasts for the 2010/11 financial year remain unchanged at 105,000 to 110,000 ounces recovered at cash costs of between A$670 and A$730 per ounce of gold. Norseman said that total operating costs were close to budgeted levels.
Norseman Gold invested A$11.5 million during the quarter, a major part of the capital expenditure was on equipment and infrastructure for the OK Decline mine development. Significant capital expenditures were made on mobile equipment (A$6.8 million), exploration (A$2.0 million) and capitalised mine development (A$2.7million). The company completed the camp expansion during the quarter. Forty new self contained rooms were placed on-site in the main accommodation camp, which were occupied by the end of the quarter.
At the end of the period, cash balances totalled A$24.9 million, with approximately A$5.5 million of this balance committed to environmental bonds. Additionally the company paid its first income tax payment of A$2.9 million during the quarter.
The company continues to make progress on its exploration programme. De-watering at the North Royal Open Pit has commenced, 21% of the water was pumped out by the end of the quarter. Elsewhere the first stage drilling programme was completed at the southern end of the open pit. A preliminary resource estimate for the Perch Reef deposit at the Harlequin Decline, returned an inferred resource of 48,000 tonnes at 41.0 g/t gold for 63,000 ounces. Norseman Gold expects a further improvement in the confidence level, once further drilling and development is undertaken. http://www.proactiveinvestors.co.uk/companies/news/12719/norseman-gold-expects-a-steady-increase-in-production-in-second-half--12719.html
Oxus Gold completes US$18.5 mln convertible loan notes restructuring
Oxus Gold (AIM: OXS) said that the restructuring of its existing convertible loan notes has been completed after the company signed an agreement with the CITIC Group consortium to provide up to US$185 million in financing.
The convertible loan notes in the principal amount of US$18.5 million were issued in May 2008 and were convertible into ordinary shares in Oxus at 37 pence per share, earned interest at 8% pa (per annum) and were repayable in May 2010. The notes are now convertible at 12 pence per share, earn interest at US LIBOR (London Interbank Offered Rate) + 3% per annum, while the repayment deadline has been extended to May 2013.
Oxus entered into conditional agreements with a consortium of Chinese investors earlier this month to invest and arrange financing of a total aggregate amount of US$185 million to help develop the company's gold project in Uzbekistan and increase production to 0.3 Moz (million ounces) of gold annually after 2011.
Under the terms of the financing, members of the concert party will make an investment in Oxus of US$85 million through an issue of new ordinary shares and convertible loan notes and will be granted warrants to subscribe for new shares in the company for US$20 million in return for an undertaking to arrange a further minimum of US$80 million in project finance. http://www.proactiveinvestors.co.uk/companies/news/12718/oxus-gold-completes-us185-mln-convertible-loan-notes-restructuring-12718.html
The convertible loan notes in the principal amount of US$18.5 million were issued in May 2008 and were convertible into ordinary shares in Oxus at 37 pence per share, earned interest at 8% pa (per annum) and were repayable in May 2010. The notes are now convertible at 12 pence per share, earn interest at US LIBOR (London Interbank Offered Rate) + 3% per annum, while the repayment deadline has been extended to May 2013.
Oxus entered into conditional agreements with a consortium of Chinese investors earlier this month to invest and arrange financing of a total aggregate amount of US$185 million to help develop the company's gold project in Uzbekistan and increase production to 0.3 Moz (million ounces) of gold annually after 2011.
Under the terms of the financing, members of the concert party will make an investment in Oxus of US$85 million through an issue of new ordinary shares and convertible loan notes and will be granted warrants to subscribe for new shares in the company for US$20 million in return for an undertaking to arrange a further minimum of US$80 million in project finance. http://www.proactiveinvestors.co.uk/companies/news/12718/oxus-gold-completes-us185-mln-convertible-loan-notes-restructuring-12718.html
Firestone Diamonds plans to evaluate kimberlites at Orapa in Botswana after historical data review
Firestone Diamonds (AIM: FDI) said it was encouraged by the review of historical data from the eight kimberlites in the Orapa field in Botswana, and is now planning to evaluate the identified high interest kimberlites.
The review carried out by Firestone covered historical work carried out by De Beers, Tawana and others on kimberlites BK19 to BK26. Limited sampling from the BK24 kimberlite, which has in excess of 3 ha (hectares) in the area returned grades of up to 5 cpht (carats per hundred tonnes), while kimberlites BK19-22 and BK25-26 were all proved to contain diamonds, though limited work was carried out to determine sizes of the kimberlites of macrodiamond grade.
The planned evaluation programme will include large diameter drill (LDD) sampling on BK24 and geophysical surveys and core drilling on the remaining kimberlites to determine whether any of them warrant further sampling. The work will follow the commencement of production at BK11 in Q2 2010 and will likely be funded through operating cash flows from BK11.
Orapa is covered by the joint venture (JV) announced with Tawana Resources in December 2009, which gives Firestone the option to earn up to an 85% interest in the kimberlites. Firestone can earn a 70% interest in the projects by covering costs for first stage bulk sampling and an additional 15% by funding the projects through to mine development decision if Tawana’s option to fund the remaining 30% interest is not exercised.
Shares in the company rose 3% on the news. http://www.proactiveinvestors.co.uk/companies/news/12717/firestone-diamonds-plans-to-evaluate-kimberlites-at-orapa-in-botswana-after-historical-data-review-12717.html
The review carried out by Firestone covered historical work carried out by De Beers, Tawana and others on kimberlites BK19 to BK26. Limited sampling from the BK24 kimberlite, which has in excess of 3 ha (hectares) in the area returned grades of up to 5 cpht (carats per hundred tonnes), while kimberlites BK19-22 and BK25-26 were all proved to contain diamonds, though limited work was carried out to determine sizes of the kimberlites of macrodiamond grade.
The planned evaluation programme will include large diameter drill (LDD) sampling on BK24 and geophysical surveys and core drilling on the remaining kimberlites to determine whether any of them warrant further sampling. The work will follow the commencement of production at BK11 in Q2 2010 and will likely be funded through operating cash flows from BK11.
Orapa is covered by the joint venture (JV) announced with Tawana Resources in December 2009, which gives Firestone the option to earn up to an 85% interest in the kimberlites. Firestone can earn a 70% interest in the projects by covering costs for first stage bulk sampling and an additional 15% by funding the projects through to mine development decision if Tawana’s option to fund the remaining 30% interest is not exercised.
Shares in the company rose 3% on the news. http://www.proactiveinvestors.co.uk/companies/news/12717/firestone-diamonds-plans-to-evaluate-kimberlites-at-orapa-in-botswana-after-historical-data-review-12717.html
Gippsland still sees tantalum shortage by 2011, expects offtake agreements for Abu-Dabbab project soon
Gippsland Limited (ASX: GIP, FRANKFURT: GIX) said the global tantalum market is still expected to experience a significant supply shortfall by 2011 and beyond despite the inflow of what it called cheap conflict tantalum from the Democratic Republic of Congo, which has forced a number of legitimate but high cost tantalum miners and projects including Talison’s Australian operations and Cabot Corporation’s Canadian Tanco operations out of business.
The company expects the tantalum supply shortfall to be further exacerbated by the constraints applied internationally to the use of conflict tantalum, mined by minors and adult workers under adverse conditions, to progressively exclude this material from the supply chain.
The unavailability of this kind of tantalum has sparked interest in the raw material from Gippsland’s Abu-Dabbab project with the company currently engaged in discussions with a number of major tantalum refiners over additional tantalum offtake and involvement in the project. Gippsland expects the shortage and the constraint on conflict tantalum usage to place it in a position to secure a long-term offtake agreement in the near future.
Gippsland already has an agreement with German tantalum refiner HC Starck GmbH for the delivery of conventional tantalum slags and concentrates. The two companies are currently in negotiations to vary the agreement for the delivery of a more valuable high purity synthetic tantalum concentrate (SynCon).
The Abu Dabbab Project has a JORC compliant mineral resource of 44.5 Mt (million tonnes) at a grade of 250 g/t (grammes per tonne) Ta2O5 (tantalum), while the Company's nearby Nuweibi tantalum deposit has a JORC mineral resource of 98 Mt at a grade of 147 g/t Ta2O5.
The total contained Ta2O5 content within the Abu Dabbab and Nuweibi deposits is 55 million pounds of Ta2O5, which Gippsland said was sufficient to satisfy global tantalum demand for more than a decade.
Abu Dabbab is scheduled to commence operations at an initial mill feed rate of 2 Mtpa (million tonnes per annum), producing in excess of 650,000 pounds of tantalum pentoxide per year, which by today's standards would make it the world's largest producer.
The company added that during sampling at its prospecting licenses in Eritrea, anomalous results for gold, copper and zinc were recorded from all of the three 100 sq km (square kilometre) licenses. Based on these results, the company has decided to double its holdings in Eritrea by applying for a further three 100 sq km prospecting licenses in the Adobha region.
During the quarter Gippsland completed a renounceable rights Issue to all shareholders to raise $3.87 million for the company before costs. http://www.proactiveinvestors.co.uk/companies/news/12716/gippsland-still-sees-tantalum-shortage-by-2011-expects-offtake-agreements-for-abu-dabbab-project-soon-12716.html
The company expects the tantalum supply shortfall to be further exacerbated by the constraints applied internationally to the use of conflict tantalum, mined by minors and adult workers under adverse conditions, to progressively exclude this material from the supply chain.
The unavailability of this kind of tantalum has sparked interest in the raw material from Gippsland’s Abu-Dabbab project with the company currently engaged in discussions with a number of major tantalum refiners over additional tantalum offtake and involvement in the project. Gippsland expects the shortage and the constraint on conflict tantalum usage to place it in a position to secure a long-term offtake agreement in the near future.
Gippsland already has an agreement with German tantalum refiner HC Starck GmbH for the delivery of conventional tantalum slags and concentrates. The two companies are currently in negotiations to vary the agreement for the delivery of a more valuable high purity synthetic tantalum concentrate (SynCon).
The Abu Dabbab Project has a JORC compliant mineral resource of 44.5 Mt (million tonnes) at a grade of 250 g/t (grammes per tonne) Ta2O5 (tantalum), while the Company's nearby Nuweibi tantalum deposit has a JORC mineral resource of 98 Mt at a grade of 147 g/t Ta2O5.
The total contained Ta2O5 content within the Abu Dabbab and Nuweibi deposits is 55 million pounds of Ta2O5, which Gippsland said was sufficient to satisfy global tantalum demand for more than a decade.
Abu Dabbab is scheduled to commence operations at an initial mill feed rate of 2 Mtpa (million tonnes per annum), producing in excess of 650,000 pounds of tantalum pentoxide per year, which by today's standards would make it the world's largest producer.
The company added that during sampling at its prospecting licenses in Eritrea, anomalous results for gold, copper and zinc were recorded from all of the three 100 sq km (square kilometre) licenses. Based on these results, the company has decided to double its holdings in Eritrea by applying for a further three 100 sq km prospecting licenses in the Adobha region.
During the quarter Gippsland completed a renounceable rights Issue to all shareholders to raise $3.87 million for the company before costs. http://www.proactiveinvestors.co.uk/companies/news/12716/gippsland-still-sees-tantalum-shortage-by-2011-expects-offtake-agreements-for-abu-dabbab-project-soon-12716.html
Gemfields produces mined grade gemstones in Q2 and sees encouraging signs in all key markets
Gemfields (AIM: GEM) said the emerald market is showing encouraging signs of increased demand and interest from all key markets, including the USA, India, China and the Middle East. In an update for the three months ended 31 December 2009, the company also revealed the production of higher grade emeralds and beryl from its Kagem mine in Zambia.
Production during the quarter was dominated by a high average grade of 365 carats per tonne, compared with the 182 carats per tonne achieved in the preceding quarter. In the second quarter Gemfields produced 2 million carats more than in the previous quarter, in Q2 emerald and beryl production totalled 4.9 million carats.
Also Gemfields said its cost reduction measures continued to bear fruit, resulting in reduced unit production costs and unit cost per tonne of rock moved. The second quarter unit production costs were USD0.64 per carat, below the average production cost of USD0.78 over the six quarters ended 31 December 2009.
“Naturally, we're pleased to have seen increased grade in the most recent quarter and which is supported by increased levels of demand from the downstream pipeline”, Gemfields CEO Ian Harebottle said, "Gemfields continues to focus on generating revenue and is making encouraging progress in delivering on its vision of bringing a regular and reliable supply of emeralds and beryl, from a responsible source, to the market.”
Gemfields presently has US$7.2 million in cash and has a gemstone inventory with an estimated value of at least US$9 million. Its 75% joint venture company, Kagem Mining Ltd, has bank loans and leases repayable by 31 December 2010 totalling USD 6.1 million.
In November 2009, Gemfields realised sales of US$5.6 million through the auction of rough emeralds. The next auction of rough emeralds and beryl is scheduled for March 2010. According to Harebottle, the forthcoming auction should cast light on the value of Gemfields's lower grade inventory.
While the illegal mining within the Kagem boundaries is not yet fully resolved, Gemfields has taken various steps to prevent this activity and it said it has the support of all key ministries in Zambia.
The company initiated a trial underground mining project during the period, and whilst it is still at an early stage, it could provide a number of opportunities for expansion into areas with a history of high quality production. The company expects the underground operation to produce ore during the first quarter of 2010, which will represent a significant milestone in the history of Zambian emeralds, Gemfields assed. http://www.proactiveinvestors.co.uk/companies/news/12715/gemfields-produces-mined-grade-gemstones-in-q2-and-sees-encouraging-signs-in-all-key-markets-12715.html
Production during the quarter was dominated by a high average grade of 365 carats per tonne, compared with the 182 carats per tonne achieved in the preceding quarter. In the second quarter Gemfields produced 2 million carats more than in the previous quarter, in Q2 emerald and beryl production totalled 4.9 million carats.
Also Gemfields said its cost reduction measures continued to bear fruit, resulting in reduced unit production costs and unit cost per tonne of rock moved. The second quarter unit production costs were USD0.64 per carat, below the average production cost of USD0.78 over the six quarters ended 31 December 2009.
“Naturally, we're pleased to have seen increased grade in the most recent quarter and which is supported by increased levels of demand from the downstream pipeline”, Gemfields CEO Ian Harebottle said, "Gemfields continues to focus on generating revenue and is making encouraging progress in delivering on its vision of bringing a regular and reliable supply of emeralds and beryl, from a responsible source, to the market.”
Gemfields presently has US$7.2 million in cash and has a gemstone inventory with an estimated value of at least US$9 million. Its 75% joint venture company, Kagem Mining Ltd, has bank loans and leases repayable by 31 December 2010 totalling USD 6.1 million.
In November 2009, Gemfields realised sales of US$5.6 million through the auction of rough emeralds. The next auction of rough emeralds and beryl is scheduled for March 2010. According to Harebottle, the forthcoming auction should cast light on the value of Gemfields's lower grade inventory.
While the illegal mining within the Kagem boundaries is not yet fully resolved, Gemfields has taken various steps to prevent this activity and it said it has the support of all key ministries in Zambia.
The company initiated a trial underground mining project during the period, and whilst it is still at an early stage, it could provide a number of opportunities for expansion into areas with a history of high quality production. The company expects the underground operation to produce ore during the first quarter of 2010, which will represent a significant milestone in the history of Zambian emeralds, Gemfields assed. http://www.proactiveinvestors.co.uk/companies/news/12715/gemfields-produces-mined-grade-gemstones-in-q2-and-sees-encouraging-signs-in-all-key-markets-12715.html
Planet Payment to launch ‘Pay In Your Currency Service’ in UAE
Planet Payment (AIM: PPT & PPTR; OTC: PLPM) has reached an agreement with Middle-Eastern card services group Network International (NI) to provide its ‘Pay in Your Currency’ service to NI’s merchant clients in the United Arab Emirates.The service enables merchants to give consumers the choice of paying in the local currency or that of their own country.
"We are excited to enter the dynamic Middle Eastern market with a world class partner like Network International”, said Planet Payment chairman and CEO Philip Beck, “The adoption of the Pay in Your Currency service has increased dramatically over recent years as more merchants around the world view the service as a powerful tool to improve sales, customer satisfaction, and net profits.”
According Planet Payment, a report by the World Travel & Tourism Council estimates that expenditures by international visitors on goods and services in the UAE will nearly double from AED83.5 billion in 2009 to AED162 billion by 2019. "The UAE is a global destination for business and tourist travel and now with Pay in Your Currency, our merchants have an innovative way to better serve their international clientele”, Network International, Abdulla Qassem said.
The companies believe that the product will enable merchants to improve service, aid volume growth and increase operating margins. The Pay in Your Currency service is expected to launch in the UAE during the second half of 2010.
In a trading update last week, Planet Payment said it expects a 30% increase in revenue for the full year to over US$47 million for 2009.
The company said that the revenue growth was led by new merchant deployments, with new processors and banking customers in the United States, Greater China, India, Malaysia, and Taiwan. Revenues from Planet Payment’s core multi-currency processing increased by more than 40%, to over US$33 million. The payment and data processing specialists also estimated that it has achieved positive adjusted earnings in Q4, representing a third consecutive positive quarter. Planet payment expects to report positive adjusted earnings for the full year. http://www.proactiveinvestors.co.uk/companies/news/12713/planet-payment-to-launch-pay-in-your-currency-service-in-uae--12713.html
"We are excited to enter the dynamic Middle Eastern market with a world class partner like Network International”, said Planet Payment chairman and CEO Philip Beck, “The adoption of the Pay in Your Currency service has increased dramatically over recent years as more merchants around the world view the service as a powerful tool to improve sales, customer satisfaction, and net profits.”
According Planet Payment, a report by the World Travel & Tourism Council estimates that expenditures by international visitors on goods and services in the UAE will nearly double from AED83.5 billion in 2009 to AED162 billion by 2019. "The UAE is a global destination for business and tourist travel and now with Pay in Your Currency, our merchants have an innovative way to better serve their international clientele”, Network International, Abdulla Qassem said.
The companies believe that the product will enable merchants to improve service, aid volume growth and increase operating margins. The Pay in Your Currency service is expected to launch in the UAE during the second half of 2010.
In a trading update last week, Planet Payment said it expects a 30% increase in revenue for the full year to over US$47 million for 2009.
The company said that the revenue growth was led by new merchant deployments, with new processors and banking customers in the United States, Greater China, India, Malaysia, and Taiwan. Revenues from Planet Payment’s core multi-currency processing increased by more than 40%, to over US$33 million. The payment and data processing specialists also estimated that it has achieved positive adjusted earnings in Q4, representing a third consecutive positive quarter. Planet payment expects to report positive adjusted earnings for the full year. http://www.proactiveinvestors.co.uk/companies/news/12713/planet-payment-to-launch-pay-in-your-currency-service-in-uae--12713.html
Caledon Resources says 2009 saleable coal production in line, to explore expansion opportunities in 2010
Caledon Resources (AIM: CDN) reported higher production in Q4 and said the saleable production of 485,000 tonnes it managed to achieve at its Cook coal mine operations in 2009 was in line with a previous announcement in December. It is still planning on a base production of 700,000t for 2010 and investigating options for further expansion.
Raw coal production in Q4 amounted to 162,000t, or a year-on-year improvement of 2%, and to 604,000 for the full year, which is 10% more than in 2008. Coking coal production for the quarter rose 3% year-on-year to 109,000t and 7% for the full year to 406,000t, while thermal coal production improved 20% to 79,000t in 2009.
Caledon sold 109,000t and 403,000t of coking coal in Q4 and full year 2009 respectively, marking an improvement of 4% and 1% respectively. Thermal coal sales dropped 81% to 7,000t in Q4, but climbed 15% to 76,000t in 2009.
Caledon said that the continuing strong demand from China and India, recommissioning of blast furnace capacity and reported sales of up to US$190/t are reinforcing forecasts of a significant increase in coking coal prices in the 2010 contract year, which will commence in April, while any increase would benefit the company from the start of Q2 2010.
A second field programme is still planned for Q2 2010 at the Minyango mine in Queensland, where no significant activity has taken place since the last update as the company is currently preparing a report on the recently completed first stage of field work for the ecological study required as part of the environmental permitting process.
The timing of the project is linked to that of the development of the proposed new coal loading terminal at Wiggins Island, which is expected to commence operations in 2013 after Caledon’s Wiggins Island Coal Export Terminal (WICET) executes the Wigging Island framework deed with the Queensland Government and Gladstone Ports Corp, enabling it to develop the port.
WICET is currently reviewing tonnage allocation requests for the first stage of the port development in preparation for commitment to take or pay contracts, which will be used as the basis for securing funding for the first stage.
Successful participants in this stage will be required to lodge a bid bond reflecting their share of costs to reach Financial Close which is scheduled for July this year. http://www.proactiveinvestors.co.uk/companies/news/12712/caledon-resources-says-2009-saleable-coal-production-in-line-to-explore-expansion-opportunities-in-2010-12712.html
Raw coal production in Q4 amounted to 162,000t, or a year-on-year improvement of 2%, and to 604,000 for the full year, which is 10% more than in 2008. Coking coal production for the quarter rose 3% year-on-year to 109,000t and 7% for the full year to 406,000t, while thermal coal production improved 20% to 79,000t in 2009.
Caledon sold 109,000t and 403,000t of coking coal in Q4 and full year 2009 respectively, marking an improvement of 4% and 1% respectively. Thermal coal sales dropped 81% to 7,000t in Q4, but climbed 15% to 76,000t in 2009.
Caledon said that the continuing strong demand from China and India, recommissioning of blast furnace capacity and reported sales of up to US$190/t are reinforcing forecasts of a significant increase in coking coal prices in the 2010 contract year, which will commence in April, while any increase would benefit the company from the start of Q2 2010.
A second field programme is still planned for Q2 2010 at the Minyango mine in Queensland, where no significant activity has taken place since the last update as the company is currently preparing a report on the recently completed first stage of field work for the ecological study required as part of the environmental permitting process.
The timing of the project is linked to that of the development of the proposed new coal loading terminal at Wiggins Island, which is expected to commence operations in 2013 after Caledon’s Wiggins Island Coal Export Terminal (WICET) executes the Wigging Island framework deed with the Queensland Government and Gladstone Ports Corp, enabling it to develop the port.
WICET is currently reviewing tonnage allocation requests for the first stage of the port development in preparation for commitment to take or pay contracts, which will be used as the basis for securing funding for the first stage.
Successful participants in this stage will be required to lodge a bid bond reflecting their share of costs to reach Financial Close which is scheduled for July this year. http://www.proactiveinvestors.co.uk/companies/news/12712/caledon-resources-says-2009-saleable-coal-production-in-line-to-explore-expansion-opportunities-in-2010-12712.html
Westminster Group unit RMS wins second Basildon Academy contract
Westminster Group (AIM: WSG) said its subsidiary RMS Integrated Solutions has won a new contract worth £100,000 to provide a range of security services to the Upper Academy in Basildon, UK.
This is the second Basildon Academy contract awarded to RMS and follows the successful completion of its contract for the Lower Academy. This new deal involves the provision of Fire & Intruder Alarms, Disabled Refuge and Disabled WC warning systems throughout the development.
RMS is a specialist provider of integrated low voltage systems throughout the UK. The company’s technology applications include Fire & Security Systems, CCTV, Structured Cabling and Wireless Data Distribution Technology.
Working with contractors, consultants and major clients throughout the UK, RMS has delivered a portfolio of installations including the Ontario Tower in Canary Warf, Empire Square in London and the Rotunda luxury apartment complex in Birmingham.
This latest contract follows a number of other new projects awarded through the group since the turn of the year. “we have started 2010 in a very positive fashion with all subsidiaries winning important business across all sectors in which we operate. Our enquiry levels remain high and the outlook for 2010 remains positive", Westminster CEO Peter Fowler said.
Earlier this month the company’s other operating divisions also expanded their business. Westminster International entered into a four year framework contract with the UK Ministry of Justice to provide security services for UK prisons. While the Longmoor Security consultancy extended its fully-subscribed close protection (CP) training programme, to offer extra courses following an unprecedented level of demand.
Also in January, Westminster International appointed a dedicated sales director in response to the significant increase in enquiry levels and new orders since the group’s flotation group in 2007. The higher level of activity also resulted in the opening of two new offices, in Abu Dhabi and Kuala Lumpur, and the appointment of further agents. http://www.proactiveinvestors.co.uk/companies/news/12697/westminster-group-unit-rms-wins-second-basildon-academy-contract-12697.html
This is the second Basildon Academy contract awarded to RMS and follows the successful completion of its contract for the Lower Academy. This new deal involves the provision of Fire & Intruder Alarms, Disabled Refuge and Disabled WC warning systems throughout the development.
RMS is a specialist provider of integrated low voltage systems throughout the UK. The company’s technology applications include Fire & Security Systems, CCTV, Structured Cabling and Wireless Data Distribution Technology.
Working with contractors, consultants and major clients throughout the UK, RMS has delivered a portfolio of installations including the Ontario Tower in Canary Warf, Empire Square in London and the Rotunda luxury apartment complex in Birmingham.
This latest contract follows a number of other new projects awarded through the group since the turn of the year. “we have started 2010 in a very positive fashion with all subsidiaries winning important business across all sectors in which we operate. Our enquiry levels remain high and the outlook for 2010 remains positive", Westminster CEO Peter Fowler said.
Earlier this month the company’s other operating divisions also expanded their business. Westminster International entered into a four year framework contract with the UK Ministry of Justice to provide security services for UK prisons. While the Longmoor Security consultancy extended its fully-subscribed close protection (CP) training programme, to offer extra courses following an unprecedented level of demand.
Also in January, Westminster International appointed a dedicated sales director in response to the significant increase in enquiry levels and new orders since the group’s flotation group in 2007. The higher level of activity also resulted in the opening of two new offices, in Abu Dhabi and Kuala Lumpur, and the appointment of further agents. http://www.proactiveinvestors.co.uk/companies/news/12697/westminster-group-unit-rms-wins-second-basildon-academy-contract-12697.html
Thor Mining says depressed molybdenum and tungsten prices still weighing on Molyhil
Thor Mining (AIM, ASX: THR) said that continuing depressed molybdenum and tungsten prices and the strength of the Australian dollar against the US dollar were further delaying the development of its Molyhil tungsten and molybdenum project in Australia.
It made the comment in a corporate activity update for the quarter ended 31 December 2009, a day after announcing plans to raise A$250,000 through a placing of 16.67 mln new shares, with the funds earmarked for evaluating new projects to supplement Molyhil.
The company is actively seeking new projects with an emphasis on mainstream commodities to enhance its portfolio. As announced in November 2009, Molyhil is currently on hold due to the depressed price of molybdenum.
Thor said today that the price of molybdenum roasted concentrates has increased to US$15.25 per pound, and the selling price of tungsten APT (ammonium paratungstate) has increased and tightened to between US$195 and US$205 per metric ton unit. These prices however are substantially below levels required for development with confidence, it added.
Regarding its exploration projects, the group said it conducted planning for a 320 kilometre line EM survey during the December quarter on the Harts Range base metals tenements in the Northern Territory. It is expected that this survey will be completed during January 2010.
The company has also initiated a search for new exploration projects focusing on gold and base metals.
The quarter closed with AS$0.5 million cash reserves.
In yesterday’s announcement, Thor reiterated that it remains committed to Molyhil and strongly believes in its long term viability. Steps have been taken to conserve cash levels. These included cessation of work with third party engineering companies on verifying capital and operating cost savings for Molyhil and a 50% reduction in directors’ remuneration and the redundancy of chief executive officer Ian Sheffield-Parker. Executive chairman Mick Billing is undertaking his role in the interim.
Molyhil is estimated to have a total resource of 3.75 million tonnes graded at 0.19% molybdenum (MoS2), 0.32% tungsten (WO3) and 28% iron (Fe2O3), including measured resources of 540,000 tonnes graded 0.24% MoS2, 0.33% WO3 and 29.4% Fe2O3 and indicated resources of 2.3 million tonnes graded at 0.18% MoS2, 0.38% WO3 and 29.4% Fe2O3 respectively. http://www.proactiveinvestors.co.uk/companies/news/12695/thor-mining-says-depressed-molybdenum-and-tungsten-prices-still-weighing-on-molyhil--12695.html
It made the comment in a corporate activity update for the quarter ended 31 December 2009, a day after announcing plans to raise A$250,000 through a placing of 16.67 mln new shares, with the funds earmarked for evaluating new projects to supplement Molyhil.
The company is actively seeking new projects with an emphasis on mainstream commodities to enhance its portfolio. As announced in November 2009, Molyhil is currently on hold due to the depressed price of molybdenum.
Thor said today that the price of molybdenum roasted concentrates has increased to US$15.25 per pound, and the selling price of tungsten APT (ammonium paratungstate) has increased and tightened to between US$195 and US$205 per metric ton unit. These prices however are substantially below levels required for development with confidence, it added.
Regarding its exploration projects, the group said it conducted planning for a 320 kilometre line EM survey during the December quarter on the Harts Range base metals tenements in the Northern Territory. It is expected that this survey will be completed during January 2010.
The company has also initiated a search for new exploration projects focusing on gold and base metals.
The quarter closed with AS$0.5 million cash reserves.
In yesterday’s announcement, Thor reiterated that it remains committed to Molyhil and strongly believes in its long term viability. Steps have been taken to conserve cash levels. These included cessation of work with third party engineering companies on verifying capital and operating cost savings for Molyhil and a 50% reduction in directors’ remuneration and the redundancy of chief executive officer Ian Sheffield-Parker. Executive chairman Mick Billing is undertaking his role in the interim.
Molyhil is estimated to have a total resource of 3.75 million tonnes graded at 0.19% molybdenum (MoS2), 0.32% tungsten (WO3) and 28% iron (Fe2O3), including measured resources of 540,000 tonnes graded 0.24% MoS2, 0.33% WO3 and 29.4% Fe2O3 and indicated resources of 2.3 million tonnes graded at 0.18% MoS2, 0.38% WO3 and 29.4% Fe2O3 respectively. http://www.proactiveinvestors.co.uk/companies/news/12695/thor-mining-says-depressed-molybdenum-and-tungsten-prices-still-weighing-on-molyhil--12695.html
Fusion IP reveals new Cardiff Uni spin-out to commercialise laparoscopic surgical devices
Intellectual Property commercialisation specialist Fusion IP (AIM: FIP) has announced a new start-up medical devices company, Asalus Medical Instruments Ltd. Asalus is a new spin-out company, resulting from Fusion's partnership with Cardiff University. Asalus is developing three devices that will improve the safety and efficiency of laparoscopic surgery, the company said.
Asalus is founded on the inventions of Neil Warren, manager of the Wales Institute of Minimal Access Therapy (WIMAT) at University Hospital Wales in Cardiff.
Laparoscopic surgery is performed through small incisions. The three novel products in development are a smoke and steam clearance device, an access port providing significant benefits over those currently available and a multifunctional device for the atraumatic manipulation of tissues and organs. Patents have already been filed on all three devices.
“Fusion's support, both commercially and financially has been invaluable and we look forward to bringing our novel product range to market in the near future", Asalus founder Warren commented, "The work at WIMAT is at the forefront of minimally invasive surgery training and it was this hands-on experience that enabled me to come up with the concepts for the Asalus range of laparoscopic devices.”
According to the company, the number of procedures conducted using this technique has grown rapidly with over 2 million laparoscopic operations performed in the US every year. A 2006 report by BCC Research estimated the global market for laparoscopic surgery devices and instruments was worth US$12 billion in 2005, it expected it to grow to US$18.5 billion by 2011, Fusion said.
Fusion specialises in university-generated intellectual property. It has long-term exclusive agreements with the University of Sheffield and Cardiff University, giving it access to a combined R&D (research and development) spend of over £185 million a year.
Fusion has also entered into a new co-investment agreement with IP Group, in which IP Group has the right to acquire for cash, 20% of Fusion's equity in any new portfolio company. IP Group holdd approximately 19.8% of Fusion. http://www.proactiveinvestors.co.uk/companies/news/12694/fusion-ip-reveals-new-cardiff-uni-spin-out-to-commercialise-laparoscopic-surgical-devices-12694.html
Morning news wrap: BSkyB, Kazakhmys, 3i, Lonmin and Rolls-Royce
In the FTSE 100, broadcaster BSkyB (LSE: BSY) said it had taken the total number of customers to 9.7 million with net additions of 172,000 in Q2, while H1 revenues climbed 10% to £2.9 billion.
Copper miner Kazakhmys (LSE: KAZ) reported at annual cathode equivalent production of 320 kt (kilotonnes), which was ahead of target.
Private equity group 3i (LSE: III) said realisations in Q3 amounted to £270 million to bring the total for the first nine months to £777 million compared to £942 million for the equivalent period of 2008.
Platinum miner Lonmin (LSE: LMI) said its underground mining operations at Marikana produced 2.6 Mt (million tonnes) in Q1, which is a like for like decline of 3.9%.
Turbine manufacturer Rolls Royce (LSE: RR) has won a share of an order from Jetstar Airways for V2500 engines to power up to 90 Airbus A320 family aircraft. The order can be worth up to US$1.2 billion to Rolls Royce.
In AIM, Specialty minerals exploration and development company Thor Mining (AIM: THR) said continuing depressed molybdenum and tungsten prices along with the strength of the Australian Dollar against the US Dollar further delayed the development of its Molyhil project.
Planet Payment (AIM: PPT) has secured an agreement to provide its Pay in Your Currency service to merchants in the UAE.
South Africa and Botswana operating diamond miner Firestone Diamonds (AIM: FDI) has completed its planned review of historical data from the eight kimberlites in the Orapa kimberlite field in Botswana covered by its JV, now planning large diameter drill sampling on BK24 and geophysical surveys and core drilling on remaining kimberlites. http://www.proactiveinvestors.co.uk/companies/news/12693/morning-news-wrap-bskyb-kazakhmys-3i-lonmin-and-rolls-royce-12693.html
Copper miner Kazakhmys (LSE: KAZ) reported at annual cathode equivalent production of 320 kt (kilotonnes), which was ahead of target.
Private equity group 3i (LSE: III) said realisations in Q3 amounted to £270 million to bring the total for the first nine months to £777 million compared to £942 million for the equivalent period of 2008.
Platinum miner Lonmin (LSE: LMI) said its underground mining operations at Marikana produced 2.6 Mt (million tonnes) in Q1, which is a like for like decline of 3.9%.
Turbine manufacturer Rolls Royce (LSE: RR) has won a share of an order from Jetstar Airways for V2500 engines to power up to 90 Airbus A320 family aircraft. The order can be worth up to US$1.2 billion to Rolls Royce.
In AIM, Specialty minerals exploration and development company Thor Mining (AIM: THR) said continuing depressed molybdenum and tungsten prices along with the strength of the Australian Dollar against the US Dollar further delayed the development of its Molyhil project.
Planet Payment (AIM: PPT) has secured an agreement to provide its Pay in Your Currency service to merchants in the UAE.
South Africa and Botswana operating diamond miner Firestone Diamonds (AIM: FDI) has completed its planned review of historical data from the eight kimberlites in the Orapa kimberlite field in Botswana covered by its JV, now planning large diameter drill sampling on BK24 and geophysical surveys and core drilling on remaining kimberlites. http://www.proactiveinvestors.co.uk/companies/news/12693/morning-news-wrap-bskyb-kazakhmys-3i-lonmin-and-rolls-royce-12693.html
FTSE 100 seen higher as Federal Reserve keeps US interest rates near zero, US, Asian stocks climb
The FTSE 100 is projected to tack on nearly 1% today after a late rally in the US stock market following a late rally on Wall Street in response to the Federal Reserve’s decision to leave interest rates at the current ultra low levels.
The Dow Jones Industrial Average turned an early loss into a 0.4% gain, while the broader S&P 500 index advanced 0.5% and the technology heavy NASDAQ composite was up 0.8%.
Asian markets also were in bullish mode as Hong Kong’s Hang Seng rose 1.4%, China’s Shanghai composite index improved 0.4%, Japan’s benchmark Nikkei 225 was up 2%, South Korea’s KOSPI climbed 1% and Australia’s S&P/ASX 200 was 0.2% higher.
The UK blue chip index shed 1.1% yesterday, pushed down by losses in the mining and financial sectors. Hedge fund managed Man Group (LSE: EMG) and part-nationalised bank RBS (LSE: RBS) were at the bottom of the pile with losses of 6.5% and 5% respectively, while Tullow Oil (LSE: TLW) followed with a 4.5% decline. Silver and gold miner Fresnillo (LSE: FRES) and plumbing and heating equipment manufacturer Wolseley (LSE: WOS) shed more than 3.5% and bank Barclays (LSE: BARC), base metal focused miners Anglo American (LSE: AAL) and Xstrata (LSE: XTA) and catered Compass Group (LSE: CPG) lost more than 3%.
Just six FTSE 100 constituents added more than 1%. Insurance focused investor Resolution (LSE: RSL) climbed 2.4%, while beverage group SABMiller (LSE: SAB) followed, tacking on 1.6% British American Tobacco (LSE: BATS), interdealer broker ICAP (LSE: IAP) and defence contractor Cobham (LSE: COB) followed with gains of over 1%, while chocolatier Cadbury (LSE: CBRY) was 1% higher.
Commodities
Oil prices were lower as March Brent Crude slid to US$72.37/barrel, while US light, sweet crude was down to US$73.84/barrel.
Precious metals also extended losses with gold sliding to US$1,087/oz, while silver and platinum retreated to US$16.52/oz and US$1,509/oz respectively.
Base metals followed with copper and nickel declining to US$3.20/lb and US$8.09/lb, while zinc slipped below US$1/lb, settling at US$0.98/lb.
Investors will be looking to the weekly jobless claims and Chicago Fed index updates that are due out in the US today. Ford (NYSE: F), Motorola (NYSE: MOT), Microsoft (NASDAQ: MSFT) and AT&T (NYSE: T) are scheduled to report on their quarterly results today. http://www.proactiveinvestors.co.uk/companies/news/12690/ftse-100-seen-higher-as-federal-reserve-keeps-us-interest-rates-near-zero-us-asian-stocks-climb-12690.html
The Dow Jones Industrial Average turned an early loss into a 0.4% gain, while the broader S&P 500 index advanced 0.5% and the technology heavy NASDAQ composite was up 0.8%.
Asian markets also were in bullish mode as Hong Kong’s Hang Seng rose 1.4%, China’s Shanghai composite index improved 0.4%, Japan’s benchmark Nikkei 225 was up 2%, South Korea’s KOSPI climbed 1% and Australia’s S&P/ASX 200 was 0.2% higher.
The UK blue chip index shed 1.1% yesterday, pushed down by losses in the mining and financial sectors. Hedge fund managed Man Group (LSE: EMG) and part-nationalised bank RBS (LSE: RBS) were at the bottom of the pile with losses of 6.5% and 5% respectively, while Tullow Oil (LSE: TLW) followed with a 4.5% decline. Silver and gold miner Fresnillo (LSE: FRES) and plumbing and heating equipment manufacturer Wolseley (LSE: WOS) shed more than 3.5% and bank Barclays (LSE: BARC), base metal focused miners Anglo American (LSE: AAL) and Xstrata (LSE: XTA) and catered Compass Group (LSE: CPG) lost more than 3%.
Just six FTSE 100 constituents added more than 1%. Insurance focused investor Resolution (LSE: RSL) climbed 2.4%, while beverage group SABMiller (LSE: SAB) followed, tacking on 1.6% British American Tobacco (LSE: BATS), interdealer broker ICAP (LSE: IAP) and defence contractor Cobham (LSE: COB) followed with gains of over 1%, while chocolatier Cadbury (LSE: CBRY) was 1% higher.
Commodities
Oil prices were lower as March Brent Crude slid to US$72.37/barrel, while US light, sweet crude was down to US$73.84/barrel.
Precious metals also extended losses with gold sliding to US$1,087/oz, while silver and platinum retreated to US$16.52/oz and US$1,509/oz respectively.
Base metals followed with copper and nickel declining to US$3.20/lb and US$8.09/lb, while zinc slipped below US$1/lb, settling at US$0.98/lb.
Investors will be looking to the weekly jobless claims and Chicago Fed index updates that are due out in the US today. Ford (NYSE: F), Motorola (NYSE: MOT), Microsoft (NASDAQ: MSFT) and AT&T (NYSE: T) are scheduled to report on their quarterly results today. http://www.proactiveinvestors.co.uk/companies/news/12690/ftse-100-seen-higher-as-federal-reserve-keeps-us-interest-rates-near-zero-us-asian-stocks-climb-12690.html
Rolls-Royce wins US$1.2bn Quantas order to power Jetstar’s Airbus A320 fleet
Turbines and aircraft engines maker Rolls-Royce (LSE: RR) has been awarded new orders worth up to US$1.2bn from Quantas Airways (ASX: QAN) subsidiary Jetstar. The orders are for the Rolls-Royce’s V2500 engines, which will power up to 90 new Airbus A320 aircraft.
Jetstar, the Quantas budget airline, has ordered the engines for its new fleet of aircraft which will be distributed among its businesses consisting of Jetstar Asia, Jetstar Pacific and Valuair of Singapore. Jetstar has initially ordered 50 aircraft, with options and purchase rights on up to 40 more.
The contract also includes a long-term engine service agreement for these aircraft as well as engines installed on 40 aircraft already operated by the three Jetstar Group airline brand businesses.
The US$1.2bn is Rolls-Royce's share in the order as the senior shareholder in the International Aero Engines consortium (IAE) which produces the V2500 engine. The order’s total value to IAE is US$3.5bn.
IAE's other partners are Pratt & Whitney, the Japanese Aero Engines Corporation and MTU Aero Engines. The V2500, which can produce between 22,000 - 33,000 pounds of thrust, powers the Airbus A319, A320 and A321 as well as the Airbus Corporate Jetliner. More than 5,500 V2500 engines are in service or on firm order worldwide. http://www.proactiveinvestors.co.uk/companies/news/12689/rolls-royce-wins-us12bn-quantas-order-to-power-jetstars-airbus-a320-fleet--12689.html
Jetstar, the Quantas budget airline, has ordered the engines for its new fleet of aircraft which will be distributed among its businesses consisting of Jetstar Asia, Jetstar Pacific and Valuair of Singapore. Jetstar has initially ordered 50 aircraft, with options and purchase rights on up to 40 more.
The contract also includes a long-term engine service agreement for these aircraft as well as engines installed on 40 aircraft already operated by the three Jetstar Group airline brand businesses.
The US$1.2bn is Rolls-Royce's share in the order as the senior shareholder in the International Aero Engines consortium (IAE) which produces the V2500 engine. The order’s total value to IAE is US$3.5bn.
IAE's other partners are Pratt & Whitney, the Japanese Aero Engines Corporation and MTU Aero Engines. The V2500, which can produce between 22,000 - 33,000 pounds of thrust, powers the Airbus A319, A320 and A321 as well as the Airbus Corporate Jetliner. More than 5,500 V2500 engines are in service or on firm order worldwide. http://www.proactiveinvestors.co.uk/companies/news/12689/rolls-royce-wins-us12bn-quantas-order-to-power-jetstars-airbus-a320-fleet--12689.html
Stratex International raises £1.3 mln for Ethiopia gold assets
Stratex International (AIM: STI) has raised approximately £1.3 million through a placing of 37.2 million new ordinary shares at 3.5p and will use the money to accelerate the development of its Ethiopian portfolio of gold assets and identify additional exploration opportunities.
"Naturally we are delighted to have completed this placing which will help support the next stage of our growth strategy”, Stratex CEO Bob Foster said, “This includes fast-tracking our Ethiopian gold projects, Shehagne and Megenta, to define a maiden resource and economic potential respectively, as well as identifying additional exploration and development opportunities in Ethiopia and acquiring new projects throughout Africa.”
In northern Ethiopia, Stratex plans a 3,000m drilling programme to define maiden resources at the Shehagne gold project and 2,000m reconnaissance drilling to define economic potential of the Magenta gold discovery.
The company will also develop prospective targets through its 70%:30% joint venture, with PLUS-quoted Sheba Exploration. "2010 is set to be an exciting year for the company, as we widen our exploration activities in Africa and continue to advance our gold discoveries in Turkey towards production”, Foster added.
The placing was arranged by the company’s broker, Westhouse Securities Ltd, Stratex expects the admission of the placing share to take place on 3 February 2010.
A number of the company’s directors have subscribed for shares in the placing. CEO Foster, CFO Perry Ashwood and non-executive director Christopher Hall all subscribed for 57,143 shares each, while non-executive director Peter Addison bought 142,857 shares. As a result of the placing, Foster will own 2.45% of the enlarged share capital, and Ashwood, Addison and Hall will control 0.54%, 0.5% and 0.4% respectively. http://www.proactiveinvestors.co.uk/companies/news/12688/stratex-international-raises-13-mln-for-ethiopia-gold-assets-12688.html
"Naturally we are delighted to have completed this placing which will help support the next stage of our growth strategy”, Stratex CEO Bob Foster said, “This includes fast-tracking our Ethiopian gold projects, Shehagne and Megenta, to define a maiden resource and economic potential respectively, as well as identifying additional exploration and development opportunities in Ethiopia and acquiring new projects throughout Africa.”
In northern Ethiopia, Stratex plans a 3,000m drilling programme to define maiden resources at the Shehagne gold project and 2,000m reconnaissance drilling to define economic potential of the Magenta gold discovery.
The company will also develop prospective targets through its 70%:30% joint venture, with PLUS-quoted Sheba Exploration. "2010 is set to be an exciting year for the company, as we widen our exploration activities in Africa and continue to advance our gold discoveries in Turkey towards production”, Foster added.
The placing was arranged by the company’s broker, Westhouse Securities Ltd, Stratex expects the admission of the placing share to take place on 3 February 2010.
A number of the company’s directors have subscribed for shares in the placing. CEO Foster, CFO Perry Ashwood and non-executive director Christopher Hall all subscribed for 57,143 shares each, while non-executive director Peter Addison bought 142,857 shares. As a result of the placing, Foster will own 2.45% of the enlarged share capital, and Ashwood, Addison and Hall will control 0.54%, 0.5% and 0.4% respectively. http://www.proactiveinvestors.co.uk/companies/news/12688/stratex-international-raises-13-mln-for-ethiopia-gold-assets-12688.html
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