Mirasol Resources (TSX-V: MRZ, Frankfurt: M8R) has discovered a new silver vein called Julia in the Virginia vein zone on its wholly owned mineral property in Santa Cruz province in Argentina.
The vein was discovered while following up alteration and structural targets during November 2009, with there are no indications that it had ever been previously prospected or sampled. Assay results for the Julia vein are pending for other nearby vein structures found subsequently.
Thirty rock chip samples from outcrop, subcrop and float of the Julia vein were collected and returned silver values of between 21.9 and 2,660 g/t (grams per tonne) silver. Gold values range from less than 0.01 to 0.14 g/t.
The average silver grade of the initial 30 samples is 645 g/t, or18.8 troy ounces per short ton, but sampling indicates that segments of the vein may contain higher silver grades, perhaps over 1,000 g/t silver.
The company said that further exploration will be required to determine what the average grade of the vein may be and if there are higher grade shoots within it.
“We are optimistic that the work completed in December will further advance the Julia vein and the potential of newly identified peripheral veins. Mirasol intends to continue exploring the Virginia vein zone for its own account and is planning additional work in early 2010,” said stated |president of Mirasol Mary Little.
The company’s property is located within the area of special interest for mining in the Santa Cruz province, where mining development is permitted and four precious metal mines are in operation. http://www.proactiveinvestors.com/companies/news/3493/mirasol-resources-discovers-new-silver-vein-in-argentina-grades-reach-2660-gt-silver--3493.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.
Wednesday, 6 January 2010
Pfizer to collaborate with India's Arcolab to commercialise injectables in the US
Pfizer (NYSE: PFE; LSE: PFZ) has announced a new collaboration with India's Strides Arcolab Ltd (BSE: 532531, NSE: STAR) to commercialize off-patent sterile injectable and oral products in the United States through its Established Products Business Unit with expectations to deliver 40 off-patent products to healthcare providers and patients in the US.
The first of the products commercialized under this collaboration is expected to be launched in 2010.
These finished dosage form products will be licensed and supplied by Strides and Onco Laboratories Limited and Onco Therapies Limited, two joint ventures between Strides and Aspen, South Africa, in which each has a 50% ownership interest.
“This Strides collaboration is new and exciting, and we are encouraged about the potential of this relationship. In addition, this agreement brings the total number of products in-licensed by our Established Products Business Unit to more than 200, resulting in a total business unit portfolio of approximately 600 high-quality, reliable, and cost effective products for patient,” said president and general manager of Pfizer’s Established Products business unit, David Simmons.
The financial terms of the supply agreement were not disclosed.
Pfizer’s Established Products business unit launched its US Injectables team less than 10 months ago and is already marketing products in the US. http://www.proactiveinvestors.com/companies/news/3492/pfizer-to-collaborate-with-indias-arcolab-to-commercialise-injectables-in-the-us-3492.html
Intermost Corp agrees to acquire Chinese honeycomb packaging company
Intermost Corporation (OTCBB: IMOT) confirmed today that it is in the process of acquiring one of the “leading Environmental Paper Products companies in China”, APT Paper Product Company (“APT”).
APT is based in Shenzhen, manufactures "Honey Comb packaging materials" for LED and Plasma products for a number of large companies, including Wal-Mart (NYSE: WMT), Costco (NASDAQ:COST), Sam's Club, Sony (NYSE:SNE) and Nokia (NYSE:NOK).
“In March 2009, one of the investors, FFBC Group from Taiwan, approached IMOT to discuss this acquisition which was concluded in September 2009,” IMOT stated. “IMOT considered this project to have good potential since all the products are environmentally designed and will never become obsolete.”
“This acquisition represents a breakthrough of IMOT's business to become an incubator for the modern green packing and honeycomb paper products packing industry in the next three years. Again, we expect to spin this project off for IPO within a 3-year period.” http://www.proactiveinvestors.com/companies/news/3491/intermost-corp-agrees-to-acquire-chinese-honeycomb-packaging-company-3491.html
APT is based in Shenzhen, manufactures "Honey Comb packaging materials" for LED and Plasma products for a number of large companies, including Wal-Mart (NYSE: WMT), Costco (NASDAQ:COST), Sam's Club, Sony (NYSE:SNE) and Nokia (NYSE:NOK).
“In March 2009, one of the investors, FFBC Group from Taiwan, approached IMOT to discuss this acquisition which was concluded in September 2009,” IMOT stated. “IMOT considered this project to have good potential since all the products are environmentally designed and will never become obsolete.”
“This acquisition represents a breakthrough of IMOT's business to become an incubator for the modern green packing and honeycomb paper products packing industry in the next three years. Again, we expect to spin this project off for IPO within a 3-year period.” http://www.proactiveinvestors.com/companies/news/3491/intermost-corp-agrees-to-acquire-chinese-honeycomb-packaging-company-3491.html
Teck Australia exercises option on Gnaweeda Gold Project, Kent Exploration to start drilling in March
Kent Exploration ("Kent") (TSX-V: KEX) reported that Teck Australia ("Teck") has exercised its second option with Chalice Gold Mines ("Chalice") over the Gnaweeda Gold Project in Western Australia.
Through exercise of the Second Option Teck’s total holding has increased to 70%, and has now entered into a 70%/30% joint venture with Chalice. Chalice also has an option to convert its 30% participating interest to a NSR royalty, whereby Teck will hold 100% of the property.
The Gnaweeda Gold Project lies 35km north-east of the town-site of Meekatharra, and includes two exploration licenses over a strike length of 28km of the Gnaweeda Greenstone Belt.
Since 2006, Teck has returned significant gold intersections at depths ranging from 17m to 280m, including 4m at 17.7 grams per tonne (g/t) gold (Au) , 5m at 13.49g/t Au, 5m at 11.64g/t Au, 3m at 11.87g/t Au, 3m at 4.85g/t Au and 3m at 4.39g/t Au.
Kent Exploration has an option to earn 100% of Teck’s interest in the Gnaweeda Project by expending A$3 million over four years. Once Kent has earned its interest in the Project, Teck has the right to earn-back 75% of the Company's interest by spending 2.5 times the Company's exploration expenditures.
A Phase I, 1,500 meter drill program is planned to commence the first week of March. http://www.proactiveinvestors.com/companies/news/3490/teck-australia-exercises-option-on-gnaweeda-gold-project-kent-exploration-to-start-drilling-in-march-3490.html
Through exercise of the Second Option Teck’s total holding has increased to 70%, and has now entered into a 70%/30% joint venture with Chalice. Chalice also has an option to convert its 30% participating interest to a NSR royalty, whereby Teck will hold 100% of the property.
The Gnaweeda Gold Project lies 35km north-east of the town-site of Meekatharra, and includes two exploration licenses over a strike length of 28km of the Gnaweeda Greenstone Belt.
Since 2006, Teck has returned significant gold intersections at depths ranging from 17m to 280m, including 4m at 17.7 grams per tonne (g/t) gold (Au) , 5m at 13.49g/t Au, 5m at 11.64g/t Au, 3m at 11.87g/t Au, 3m at 4.85g/t Au and 3m at 4.39g/t Au.
Kent Exploration has an option to earn 100% of Teck’s interest in the Gnaweeda Project by expending A$3 million over four years. Once Kent has earned its interest in the Project, Teck has the right to earn-back 75% of the Company's interest by spending 2.5 times the Company's exploration expenditures.
A Phase I, 1,500 meter drill program is planned to commence the first week of March. http://www.proactiveinvestors.com/companies/news/3490/teck-australia-exercises-option-on-gnaweeda-gold-project-kent-exploration-to-start-drilling-in-march-3490.html
Chinese investors approach Millstream Mines about Potter Copper-Zinc-Cobalt project in Ontario
Millstream Mines (TSX-V: MLM, FSE: NJD) has received an approach from as yet unnamed “mainland Chinese investors” seeking to participate in the company’s Potter Base Metal Mine Property in north-eastern Ontario.
Millstream did not disclose much information, other than to say that it was in discussions that may lead to either “an outright purchase of the property” or an earn-in agreement. “An intermediation contract has been recently signed with these Agents,” the company also reported.
The Potter Mine Property is host to an indicated resource of 3,028,767 tonnes at 1.45% copper, 1.19% zinc, 389.7 ppm cobalt, 11.1 ppm silver, and 127.5 ppb gold along with an inferred resource of 2,071,101 tonnes at 1.08 % copper, 1.05 % zinc, 301.4 ppm cobalt, 8.7 ppm silver, and 81.7 ppb gold. http://www.proactiveinvestors.com/companies/news/3489/chinese-investors-approach-millstream-mines-about-potter-copper-zinc-cobalt-project-in-ontario-3489.html
Teryl Resources bats away Kinross offer to buy out Gil Gold Property JV
Teryl Resources (TSX-V: TRC) (OTCBB: TRYLF) has rejected an offer from Fairbanks Gold Mining, a subsidiary of Kinross Gold (TSX: K, NYSE: KGC) to acquire the remaining interest in the Gil Joint Venture gold property in Alaska.
Teryl said it could not agree to accept the offer as Kinross Gold had failed to report several assays from a 16,000 foot drilling program completed in 2009.
“The Company's Board of Directors have determined that the said Letter of Intent Offer cannot be accepted due to the fact that the 2009 exploration report and several assays have not been received from Kinross Gold by the due date of the said offer,” Teryl Resources summarised.
“John Robertson states that the current gold assay results received to date from the 2009 - 16,000 foot drilling program was very positive on the Sourdough Ridge Zone and the future potential is very encouraging (see Press Release dated October 20, 2009 for assay details).”
Kinross Gold currently has an 80% interest in the Gil joint venture, and was seeking to increase its participation to 100%. http://www.proactiveinvestors.com/companies/news/3488/teryl-resources-bats-away-kinross-offer-to-buy-out-gil-gold-property-jv-3488.html
Sunridge Gold expands footprint of Asmara Project
Sunridge Gold (TSX-V: SGC) ("Sunridge") announced that it has received extensions to two of its exploration licenses that are part of the Asmara Project, Eritrea. According to Sunridge, the extensions increase the overall size of the project by 60%, from 665 square kilometres to 1062.5 square kilometres. The two exploration licenses extend the company’s land position five kilometres east and west of the current project, and are both believed to be on trend with the volcanogenic-massive-sulphide (“VMS”) and shear zone gold mineralization.
Sunridge further noted that 153 square kilometres of the new ground would fall into a previously agreed exploration joint venture with London listed mining giant, Antofagasta (LSE: ANTO). Antofagasta can earn 60% in the Asmara Project by expending US$10 million over five years in exploration. http://www.proactiveinvestors.com/companies/news/3487/sunridge-gold-expands-footprint-of-asmara-project-3487.html
Sunridge further noted that 153 square kilometres of the new ground would fall into a previously agreed exploration joint venture with London listed mining giant, Antofagasta (LSE: ANTO). Antofagasta can earn 60% in the Asmara Project by expending US$10 million over five years in exploration. http://www.proactiveinvestors.com/companies/news/3487/sunridge-gold-expands-footprint-of-asmara-project-3487.html
Formation Metals reports highest grade uranium to date from Virgin River joint venture with Cameco and Areva
Formation Metals (“Formation") (TSX-V: FCO) released an update on the Virgin River Uranium Project, in which it holds a 2% interest and a right to increase its interest to 10%, subject to certain terms. The Virgin River Uranium Project is operated by Cameco Corporation (TSX & NYSE: CCO). French nuclear giant Areva (Euronext Paris: CEI) is also a stakeholder.
Formation reported that a total of 7,742 metres of diamond drilling was completed in 2009. During the Phase II winter drilling program, Cameco reported numbers intersects of uranium mineralization, with the highlight being DDH VR-031W3 which returned 8.73% U3O8 over 33.9 meters (0.1% grade cut-off).This is highest grade interval on the project to date.
“The Centennial deposit has now been traced over a known 650 m of strike length and appears to remain open to both the north and the south,” Formation commented, “Diamond drilling suggest the deposit has a minimum across strike width ranging from 10.0 m to 52.5 m and is currently open to the east and west on most sections.”
Looking ahead to 2010, Formation reported that an exploration budget of $5 million had been approved, which will consist of additional diamond drilling and time-domain electromagnetic geophysical surveying.
“A winter campaign utilizing two drills will be initiated in early 2010 to test regional targets to the north of the Centennial deposit. A summer campaign utilizing both drills will also concentrate on extending the strike length of the Centennial deposit to both the north and south and continue testing the across-strike width and the potential for high-grade mineralization (ie. greater than 100 GT) on select fences.”
Share in Formation Metals were on the move yesterday, which was attributed to the company’s cobalt interests. http://www.proactiveinvestors.com/companies/news/3486/formation-metals-reports-highest-grade-uranium-to-date-from-virgin-river-joint-venture-with-cameco-and-areva-3486.html
Sacre-Coeur Minerals beefs up management team as it moves towards production
Guyana focused mineral explorer and developer, Sacre-Coeur Minerals (TSX-V: SMC)(“Sacre-Coeur”) said that it had reshuffled its board of directors to better reflect its intention to become a gold producer.
The company has spend the past few years testing and advancing a number of prospective targets in Guyana, predominately focused on gold mineralization, but also diamonds. More recently, focus has sharpened on the potential of alluvial gold deposits, which require comparatively low capital expenditure compared to hard rock mines to put into production.
Sacre-Coeur has promoted Gregory Sparks to the position of President and CEO, and has secured the services of Allen Heyl to fill the role of Director of Mining and Exploration. Irwin Olian, who has been instrumental in the company’s progress in recent years, will stay on as Chairman of the company and will continue to serve as a member of the board of directors.
"We are delighted to strengthen our management team with the addition of David Heyl and to increase Greg Sparks' responsibilities by appointing him as our new President and CEO,” stated Irwin Olian, Chairman of Sacre-Coeur, “As we now focus our efforts on development and expansion of our alluvial mining operations in addition to continuing with our ongoing exploration programs in Guyana, we felt it was important to strengthen our professional mining management… I remain personally committed to maintaining an active role in senior management as Chairman, focusing on overall corporate strategy and business development, interfacing with the capital markets and providing general leadership."
Gregory Sparks possesses over 35 years of mining experience as a senior mining executive in the minerals industry, covering exploration, feasibility, development and operation of both surface and underground mining projects.
Allen Heyl will be tasked with directing the day-to-day operations of Sacre-Coeur’s exploration and alluvial mining programs in Guyana, including supporting infrastructure. http://www.proactiveinvestors.com/companies/news/3482/sacre-coeur-minerals-beefs-up-management-team-as-it-moves-towards-production-3482.html
The company has spend the past few years testing and advancing a number of prospective targets in Guyana, predominately focused on gold mineralization, but also diamonds. More recently, focus has sharpened on the potential of alluvial gold deposits, which require comparatively low capital expenditure compared to hard rock mines to put into production.
Sacre-Coeur has promoted Gregory Sparks to the position of President and CEO, and has secured the services of Allen Heyl to fill the role of Director of Mining and Exploration. Irwin Olian, who has been instrumental in the company’s progress in recent years, will stay on as Chairman of the company and will continue to serve as a member of the board of directors.
"We are delighted to strengthen our management team with the addition of David Heyl and to increase Greg Sparks' responsibilities by appointing him as our new President and CEO,” stated Irwin Olian, Chairman of Sacre-Coeur, “As we now focus our efforts on development and expansion of our alluvial mining operations in addition to continuing with our ongoing exploration programs in Guyana, we felt it was important to strengthen our professional mining management… I remain personally committed to maintaining an active role in senior management as Chairman, focusing on overall corporate strategy and business development, interfacing with the capital markets and providing general leadership."
Gregory Sparks possesses over 35 years of mining experience as a senior mining executive in the minerals industry, covering exploration, feasibility, development and operation of both surface and underground mining projects.
Allen Heyl will be tasked with directing the day-to-day operations of Sacre-Coeur’s exploration and alluvial mining programs in Guyana, including supporting infrastructure. http://www.proactiveinvestors.com/companies/news/3482/sacre-coeur-minerals-beefs-up-management-team-as-it-moves-towards-production-3482.html
DISCOVERY, SONY AND IMAX TO LAUNCH FIRST DEDICATED 3D TELEVISION NETWORK IN THE U.S.
Discovery Communications (NASDAQ: DISCA, DISCB, DISCK), Sony Corporation (NYSE:SNE) and IMAX Corporation (NASDAQ: IMAX; TSX: IMX) jointly announced a joint venture to develop the first dedicated 3D television network in the U.S. T
The partnership brings together 3D content, technology expertise, television distribution and operational strength to deliver a three-dimensional viewing experience.
“Discovery’s business strategy has always focused on delivering groundbreaking content through new platforms, including the first suite of digital channels launched in 1996 and the first 24/7 basic cable HD channel in 2002,” said Discovery Founder and Chairman John Hendricks. “Now, as Discovery celebrates its 25th anniversary in 2010 as the world leader in satisfying curiosity and bringing audiences the most realistic viewing experience, we continue to change the face of television with the launch of the first-ever 24/7 dedicated 3D television network.”
IMAX, which owns and operates 3D theatre across the globe, said the partnership was its first step in a strategic effort to take 3D into the home; “We’ve already had strong collaborations with Discovery Communications and Sony in the past on IMAX event film titles, and we are thrilled to work with such strong partners to be the first to make in-home 3D a reality.”
Discovery, Sony Corporation of Ame
rica and IMAX each will be equal partners in the joint venture. The 3D network will source content from Discovery, Sony Pictures Entertainment, IMAX and other third-party providers.
“Discovery will provide network services, including affiliate sales and technical support functions, as well as 3D television rights to Discovery content and cross-promotion across its portfolio of 13 U.S. television networks. Sony will provide advertising/sponsorship sales support, and will seek to license television rights to current and future 3D feature films, music-related 3D content and game-related 3D content, while providing cross-promotion at retail stores. IMAX also will license television rights to future 3D films, promotion through its owned-and-operated movie theaters across the U.S., and a suite of proprietary and patented image enhancement and 3D technologies,” the joint statement noted. http://www.proactiveinvestors.com/companies/news/3474/discovery-sony-and-imax-to-launch-first-dedicated-3d-television-network-in-the-us--3474.html
The partnership brings together 3D content, technology expertise, television distribution and operational strength to deliver a three-dimensional viewing experience.
“Discovery’s business strategy has always focused on delivering groundbreaking content through new platforms, including the first suite of digital channels launched in 1996 and the first 24/7 basic cable HD channel in 2002,” said Discovery Founder and Chairman John Hendricks. “Now, as Discovery celebrates its 25th anniversary in 2010 as the world leader in satisfying curiosity and bringing audiences the most realistic viewing experience, we continue to change the face of television with the launch of the first-ever 24/7 dedicated 3D television network.”
IMAX, which owns and operates 3D theatre across the globe, said the partnership was its first step in a strategic effort to take 3D into the home; “We’ve already had strong collaborations with Discovery Communications and Sony in the past on IMAX event film titles, and we are thrilled to work with such strong partners to be the first to make in-home 3D a reality.”
Discovery, Sony Corporation of Ame
rica and IMAX each will be equal partners in the joint venture. The 3D network will source content from Discovery, Sony Pictures Entertainment, IMAX and other third-party providers.
“Discovery will provide network services, including affiliate sales and technical support functions, as well as 3D television rights to Discovery content and cross-promotion across its portfolio of 13 U.S. television networks. Sony will provide advertising/sponsorship sales support, and will seek to license television rights to current and future 3D feature films, music-related 3D content and game-related 3D content, while providing cross-promotion at retail stores. IMAX also will license television rights to future 3D films, promotion through its owned-and-operated movie theaters across the U.S., and a suite of proprietary and patented image enhancement and 3D technologies,” the joint statement noted. http://www.proactiveinvestors.com/companies/news/3474/discovery-sony-and-imax-to-launch-first-dedicated-3d-television-network-in-the-us--3474.html
Severn Trent contract with Azzurri Communications to use iPass’ mobility manager software
iPass (NASDAQ: IPAS) announced today that it’s iPassConnect mobility manager software would be part of a support and management solution contract with utility Severn Trent Plc (LSE: SVT) won by Azzurri Communications.
Azzurri Communication’s three year contract with Severn Trent Water, a subsidiary of Severn Trent PLC, which is a constituent of the FTSE 100, will provide mobile access to 1,500 field based engineers. The contract is part of a wider ‘Enterprise Resource Planning’ system that Severn Trent is implementing to boost efficiency and productivity at its operations in the Britain. “The solution, built on Azzurri's 'Azzurri Roam' service, provides the flexibility for Severn Trent to tailor a mobile solution to their specific needs, ensuring user acceptance is high from the outset,” iPass stated.
The iPassConnect Mobility Manager software is part of the ‘Azzurri Roam’ service, which allows engineers in the field to securely access applications over the iPass network.
“iPassConnect provides a simple, consistent connection experience across the world's largest virtual network of 3G mobile broadband, over 140,000 Wi-Fi and Ethernet locations and dial-up covering over 165 countries.”
"Mobility is a strategically important part of Severn Trent's operations, and we are very pleased that Severn Trent Water has acknowledged iPass as a leader in the enterprise mobility services space by choosing iPass," said Azadar Shah, sales director, UK & Ireland, at iPass. "This project highlights the ongoing strength of our partnership with Azzurri Communications and our commitment to provide enterprise mobility services that deliver a simple and smart connection experience for the user while ensuring a secure and cost-effective solution for IT management." http://www.proactiveinvestors.com/companies/news/3473/severn-trent-contract-with-azzurri-communications-to-use-ipass-mobility-manager-software-3473.html
Azzurri Communication’s three year contract with Severn Trent Water, a subsidiary of Severn Trent PLC, which is a constituent of the FTSE 100, will provide mobile access to 1,500 field based engineers. The contract is part of a wider ‘Enterprise Resource Planning’ system that Severn Trent is implementing to boost efficiency and productivity at its operations in the Britain. “The solution, built on Azzurri's 'Azzurri Roam' service, provides the flexibility for Severn Trent to tailor a mobile solution to their specific needs, ensuring user acceptance is high from the outset,” iPass stated.
The iPassConnect Mobility Manager software is part of the ‘Azzurri Roam’ service, which allows engineers in the field to securely access applications over the iPass network.
“iPassConnect provides a simple, consistent connection experience across the world's largest virtual network of 3G mobile broadband, over 140,000 Wi-Fi and Ethernet locations and dial-up covering over 165 countries.”
"Mobility is a strategically important part of Severn Trent's operations, and we are very pleased that Severn Trent Water has acknowledged iPass as a leader in the enterprise mobility services space by choosing iPass," said Azadar Shah, sales director, UK & Ireland, at iPass. "This project highlights the ongoing strength of our partnership with Azzurri Communications and our commitment to provide enterprise mobility services that deliver a simple and smart connection experience for the user while ensuring a secure and cost-effective solution for IT management." http://www.proactiveinvestors.com/companies/news/3473/severn-trent-contract-with-azzurri-communications-to-use-ipass-mobility-manager-software-3473.html
SGI secures contract to supply Imperial College London with high performance computing solution
Silicon Graphics International Corp (“SGI”) (NASDAQ; SGI) has been awarded a contract to supply a Massively Parallel Processing (“MPP”) solution to act as Imperial College London’s high end HPC (high performance computing) system.
“Imperial College required an advanced computing solution for students and researchers to conduct course work and research that depend on extremely complex process modelling,” SGI stated. “The college selected the SGI dual-rail Infiniband supercomputer, Altix ICE 8200 EX, which uses the latest Intel(R) Xeon(R) Nehalem processors.”
The SGI installations will provide a central service to handle all study and research applications common to HPC academia, including computational fluid dynamics, and weather and ocean modelling.
"Due to the complex nature of the target applications, speed, performance and low latency are critical factors for our HPC users," said Simon Burbidge, HPC coordination manager at Imperial College London. "The new SGI installation has proven to perform very well across these attributes and will enable researchers at the university to tackle larger, more difficult problems than ever before."
SGI will also provide dedicated in-house application expertise to Imperial College London as part of the partnership.
"Imperial College London is at the absolute forefront of technological development and scientific understanding," said Rod Evans, vice president of sales for Northern Europe at SGI. "Altix ICE will help drive its academic research to new levels with highly reliable, extremely energy efficient and scalable hardware, allowing them to continually evolve their HPC capabilities." http://www.proactiveinvestors.com/companies/news/3472/sgi-secures-contract-to-supply-imperial-college-london-with-high-performance-computing-solution-3472.html
Gippsland announces encouraging results from geochemical survey in Eritrea
Australian based international resource company Gippsland (ASX: GIP) has unveiled promising results from a reconnaissance drainage geochemical survey from within the three Prospecting Licences in Eritrea.
The news saw shares in Gippsland increase 9.4% to 7c during the afternoon trade.
The survey saw a total of eleven Thematic Mapper alteration targets sampled by collecting 196 drainage samples associated with zones of argillic alteration and favourable host lithologies.
Anomalous results for gold, copper and zinc were recorded from all of the three 100 km2 PLs.
TM target E26 (411400E/1920400N) located within the northern Afah PL yielded a coherent copper anomaly 2.8 km long with six samples containing anomalous copper values, with the highest being 193 ppm.
A low order but coincident gold, copper and zinc anomaly was identified at the E21 target (404800E/1905000N) within the central Merba West PL. The close association of this anomaly with the TM alteration target, favourable geology and low sample density make this a priority for further sampling.
TM target E14 (403700E/1888100N) located within the Rabae Tahat North PL yielded the highest gold values with two samples containing 1.1 and 3.7 g/t.
Gippsland chief executive Jack Telford said the company was greatly encouraged by the results of the first pass widely spaced sampling programme.
Infill drainage sampling will follow to determine the source of the anomalous gold, copper, and zinc values.
The three PLs cover 300 km2 of ground that is prospective for both VMS mineralisation and structurally controlled gold mineralisation.
The PLs were selected following an interpretation of Thematic Mapper (TM) satellite data of a large part of northern Eritrea. During this study, the Bisha and Zara (Koka) mineral deposit areas were used as type examples.
The three PLs are located in a geological setting similar to the Bisha gold-base metal deposit located some 174 km to the south that contains 1.44 Moz Au, 0.39 Mt Cu and 0.499 Mt Zn. The structural setting of the area covered by the PLs is also similar to that found at the 0.94 Moz Zara (Koka) gold project located along strike some 65 km to the south.
"As a result of the above results, Gippsland Directors have unanimously agreed to make application for a further three 100 km2 Prospecting Licenses in the Adobha region," Mr Telford said.
"If successful, the additional licences will double the Company's holdings in Eritrea.
"The Directors believe that Gippsland's first-mover advantage in this highly prospective province improves the likelihood of identifying substantial gold and copper deposits similar to those situated on strike to the south of the Company's PLs, and elsewhere in the Arabian-Nubian Shield." http://www.proactiveinvestors.com/companies/news/3470/gippsland-announces-encouraging-results-from-geochemical-survey-in-eritrea-3470.html
The news saw shares in Gippsland increase 9.4% to 7c during the afternoon trade.
The survey saw a total of eleven Thematic Mapper alteration targets sampled by collecting 196 drainage samples associated with zones of argillic alteration and favourable host lithologies.
Anomalous results for gold, copper and zinc were recorded from all of the three 100 km2 PLs.
TM target E26 (411400E/1920400N) located within the northern Afah PL yielded a coherent copper anomaly 2.8 km long with six samples containing anomalous copper values, with the highest being 193 ppm.
A low order but coincident gold, copper and zinc anomaly was identified at the E21 target (404800E/1905000N) within the central Merba West PL. The close association of this anomaly with the TM alteration target, favourable geology and low sample density make this a priority for further sampling.
TM target E14 (403700E/1888100N) located within the Rabae Tahat North PL yielded the highest gold values with two samples containing 1.1 and 3.7 g/t.
Gippsland chief executive Jack Telford said the company was greatly encouraged by the results of the first pass widely spaced sampling programme.
Infill drainage sampling will follow to determine the source of the anomalous gold, copper, and zinc values.
The three PLs cover 300 km2 of ground that is prospective for both VMS mineralisation and structurally controlled gold mineralisation.
The PLs were selected following an interpretation of Thematic Mapper (TM) satellite data of a large part of northern Eritrea. During this study, the Bisha and Zara (Koka) mineral deposit areas were used as type examples.
The three PLs are located in a geological setting similar to the Bisha gold-base metal deposit located some 174 km to the south that contains 1.44 Moz Au, 0.39 Mt Cu and 0.499 Mt Zn. The structural setting of the area covered by the PLs is also similar to that found at the 0.94 Moz Zara (Koka) gold project located along strike some 65 km to the south.
"As a result of the above results, Gippsland Directors have unanimously agreed to make application for a further three 100 km2 Prospecting Licenses in the Adobha region," Mr Telford said.
"If successful, the additional licences will double the Company's holdings in Eritrea.
"The Directors believe that Gippsland's first-mover advantage in this highly prospective province improves the likelihood of identifying substantial gold and copper deposits similar to those situated on strike to the south of the Company's PLs, and elsewhere in the Arabian-Nubian Shield." http://www.proactiveinvestors.com/companies/news/3470/gippsland-announces-encouraging-results-from-geochemical-survey-in-eritrea-3470.html
NovaGold revised Galore Creek development plan expected this quarter
In a news release issued Tuesday, NovaGold Resources said the junior miner and joint venture partner Teck "are considering a more aggressive program for 2010" to advance the Galore Creek project toward a construction decision.
NovaGold also announced it had hired former Homestake Mining COO Gil Leathley as a senior advisor to advise the company on mining, technical and operation matters related to the company's advanced projects.
Calling Leathley one of the "best mine builders in our industry," NovaGold CEO Rick Van Nieuwenhuyse said, "Mr. Leathley's pragmatic advice and expertise will be invaluable in developing what we consider several of the most significant mining projects of this century."
However, whether the Galore Creek project is as fabulous as NovaGold management claims is the subject of several shareholder lawsuits. NovaGold says the Galore Creek deposit contains 8.9 billion pounds of copper, 7.3 million ounces of gold and 123 million ounces of silver in measured and indicated resources. Originally annual production had been estimated at 340,000 ounces of gold, 4 million ounces of silver and 200kt of copper.
Nevertheless, the project was put on hold in late 2007 when Teck management determined the Galore Creek project capex was actually US$5 billion, a substantial increase from the original $2 billion project capex. At the time, Citigroup metals analysts urged NovaGold to sell Galore Creek, declaring "the magnitude of underestimation is shocking to us, even in an industry rife with over-runs, casts a cloud over the equally-challenging yet earlier stage Donlin Creek (AK) gold project."
Recently, however, Canada's provincial and federal governments announced support to build a power line along Highway 37 to Bob Quinn, which is the starting point of the Galore Creek access road.
Meanwhile, due to the strength of copper and gold markets, NovaGold said it will release a new mine plan for Galore Creek early this year "that will include updated economics using higher copper and gold prices and an optimized project design."
NovaGold officials said the company is also working with Donlin Creek joint venture partner Barrick to assess "optimization scenarios with the goal of reducing power and processing costs and further improving project economics."
In April 2009, a feasibility study estimated Donlin Creek would cost US$4.5 billion to build and would produce an average of 1.25 million ounces over a 21-year mine life. NovaGold claims the Alaskan project "contains one of the largest gold deposits in the world with 29.3 million ounces of gold in proven and probable reserves and a further 6 million ounces of gold in measured and indicated resources."
NovaGold also has ready access to capital after filing a US$500 million base shelf prospectus on December 31, 2009. http://www.proactiveinvestors.com/companies/news/3469/novagold-revised-galore-creek-development-plan-expected-this-quarter--3469.html
NovaGold also announced it had hired former Homestake Mining COO Gil Leathley as a senior advisor to advise the company on mining, technical and operation matters related to the company's advanced projects.
Calling Leathley one of the "best mine builders in our industry," NovaGold CEO Rick Van Nieuwenhuyse said, "Mr. Leathley's pragmatic advice and expertise will be invaluable in developing what we consider several of the most significant mining projects of this century."
However, whether the Galore Creek project is as fabulous as NovaGold management claims is the subject of several shareholder lawsuits. NovaGold says the Galore Creek deposit contains 8.9 billion pounds of copper, 7.3 million ounces of gold and 123 million ounces of silver in measured and indicated resources. Originally annual production had been estimated at 340,000 ounces of gold, 4 million ounces of silver and 200kt of copper.
Nevertheless, the project was put on hold in late 2007 when Teck management determined the Galore Creek project capex was actually US$5 billion, a substantial increase from the original $2 billion project capex. At the time, Citigroup metals analysts urged NovaGold to sell Galore Creek, declaring "the magnitude of underestimation is shocking to us, even in an industry rife with over-runs, casts a cloud over the equally-challenging yet earlier stage Donlin Creek (AK) gold project."
Recently, however, Canada's provincial and federal governments announced support to build a power line along Highway 37 to Bob Quinn, which is the starting point of the Galore Creek access road.
Meanwhile, due to the strength of copper and gold markets, NovaGold said it will release a new mine plan for Galore Creek early this year "that will include updated economics using higher copper and gold prices and an optimized project design."
NovaGold officials said the company is also working with Donlin Creek joint venture partner Barrick to assess "optimization scenarios with the goal of reducing power and processing costs and further improving project economics."
In April 2009, a feasibility study estimated Donlin Creek would cost US$4.5 billion to build and would produce an average of 1.25 million ounces over a 21-year mine life. NovaGold claims the Alaskan project "contains one of the largest gold deposits in the world with 29.3 million ounces of gold in proven and probable reserves and a further 6 million ounces of gold in measured and indicated resources."
NovaGold also has ready access to capital after filing a US$500 million base shelf prospectus on December 31, 2009. http://www.proactiveinvestors.com/companies/news/3469/novagold-revised-galore-creek-development-plan-expected-this-quarter--3469.html
British Airways traffic falls 4% in December due to weather and strike threat
British Airways (LSE: BAY) reported a 4.2% year on year decline in passenger capacity, while traffic as measured in revenue passenger kilometres was down 4% due to the cold weather and a strike threat that came from the employees of the airline early in December 2009.
The traffic decrease comprised a 0.7% decline in premium traffic and a 4.6% slide in non-premium traffic. Despite the unfavourable weather conditions, 98% of flights operated.
Load factor increased 0.1% points to 76.8%, while cargo as measured in cargo tonne kilometres increased by 7.2%.
The Unite trade union threatened a strike during Christmas in response to the airline’s staff cuts conducted in November, when the number of cabin crew on long-haul flights was reduced from between 15 and 16 to 14. http://www.proactiveinvestors.co.uk/companies/news/11893/british-airways-traffic-falls-4-in-december-due-to-weather-and-strike-threat-11893.html
The traffic decrease comprised a 0.7% decline in premium traffic and a 4.6% slide in non-premium traffic. Despite the unfavourable weather conditions, 98% of flights operated.
Load factor increased 0.1% points to 76.8%, while cargo as measured in cargo tonne kilometres increased by 7.2%.
The Unite trade union threatened a strike during Christmas in response to the airline’s staff cuts conducted in November, when the number of cabin crew on long-haul flights was reduced from between 15 and 16 to 14. http://www.proactiveinvestors.co.uk/companies/news/11893/british-airways-traffic-falls-4-in-december-due-to-weather-and-strike-threat-11893.html
Plant Impact COO Thompson resigns to pursue other interests
Plant Impact PLC (AIM: PIM) said that, after some five years of association with the company and being instrumental in developing its pipeline of technologies, chief operating officer Bill Thompson has informed the company he wishes to resign as a non-executive director of Plant Impact, with immediate effect, to pursue other interests.
He will remain as a consultant to the company during his six months notice period.
Chairman Martin Robinson said: "I would like to thank Bill for all his excellent work in the past few years as Plant Impact continues in its quest towards commercializing its products."
Thompson joined BioFutures Pi as a non-executive director in May 2004 and was appointed as a non-executive Director on the formation of the Plant Impact in June 2005.
In December 2009, the developer of technologies that improve crop productivity released its interim results, reporting a nearly fourfold increase in revenues while losses narrowed.
Revenues for the six months to 30 September amounted to £969,554 compared to £225,287 for the equivalent period of the previous year, while losses narrowed to £879,381 from £1.3 million a year earlier. The increase in revenues was largely due to the sales of nutrient products in the USA and milestone payments for pesticide product BugOil after the company entered into a licensing agreement with Arysta LifeScience Corp (ALS).
The interim report offered an upbeat outlook, referring to the group’s recent appointment as a member of the parliamentary science committee to the House of Commons and its work with the USDA, which it said was key to the widespread commercialisation of its products.
Apart from BugOil, current Plant Impact technologies include Alethea, providing resistance to climate, water and salt, Speedo to accelerate plant growth, PiNT aimed at enabling higher yielding stronger plants and CaT technology which aims at improving calcium absorption in plants. http://www.proactiveinvestors.co.uk/companies/news/11892/plant-impact-coo-thompson-resigns-to-pursue-other-interests--11892.html
He will remain as a consultant to the company during his six months notice period.
Chairman Martin Robinson said: "I would like to thank Bill for all his excellent work in the past few years as Plant Impact continues in its quest towards commercializing its products."
Thompson joined BioFutures Pi as a non-executive director in May 2004 and was appointed as a non-executive Director on the formation of the Plant Impact in June 2005.
In December 2009, the developer of technologies that improve crop productivity released its interim results, reporting a nearly fourfold increase in revenues while losses narrowed.
Revenues for the six months to 30 September amounted to £969,554 compared to £225,287 for the equivalent period of the previous year, while losses narrowed to £879,381 from £1.3 million a year earlier. The increase in revenues was largely due to the sales of nutrient products in the USA and milestone payments for pesticide product BugOil after the company entered into a licensing agreement with Arysta LifeScience Corp (ALS).
The interim report offered an upbeat outlook, referring to the group’s recent appointment as a member of the parliamentary science committee to the House of Commons and its work with the USDA, which it said was key to the widespread commercialisation of its products.
Apart from BugOil, current Plant Impact technologies include Alethea, providing resistance to climate, water and salt, Speedo to accelerate plant growth, PiNT aimed at enabling higher yielding stronger plants and CaT technology which aims at improving calcium absorption in plants. http://www.proactiveinvestors.co.uk/companies/news/11892/plant-impact-coo-thompson-resigns-to-pursue-other-interests--11892.html
FTSE 100 slides as US futures point to lower open on Wall Street, miners and energy stocks mixed
Overview: the FTSE 100 was in retreat today, shedding 0.3%, though still remaining above the 5,500 mark it captured on the first day of trading in 2010. The UK blue chip index was tracking yesterday’s losses on Wall Street, where the Dow Jones Industrial Average finished with a 0.1% decline on mixed data.
The US Commerce Department said yesterday that factory orders rose by 1.1% in November against the expected improvement of 0.5%, however, housing data turned out to be weak as the National Association of Retailers reported a 16% decline in its index of pending home sales.
Plumbing and heating equipment manufacturer Wolseley (LSE: WOS) emerged atop the leaderboard with a 4.5% advance. Bailed out bank RBS (LSE: RBS) continued its climb, adding a forther 3% on top of the 10% gains it posted on Monday and Tuesday. Software developer Autonomy Corporation (LSE: AU) also made it to the top three with a 2.4% improvement. Other notable risers included turbine manufacturer Rolls Royce (LSE: RR), which added more than 2% as well as telecom groups BT (LSE: BT) and Cable & Wireless (LSE: CW) with gains of 1.5% and defence contractor BAE Systems (LSE: BA), which climbed 1.2%.
Retailer Marks and Spencer (LSE: MKS) was the heaviest faller in the index with a 5.5% decline after publishing a trading update for Q3 with a lesser than expected increase in like for like sales. Oil and gas services firm Petrofac (LSE: PFC) followed with a 3% slide after Morgan Stanley (NYSE: MS) downgraded the stock to “underweight” from “equal-weight.” Other notable fallers included asset management firm Schroders (LSE: SDR), National Grid (LSE: NG) and property company Segro (LSE: SGO), which all lost 2%.
Wall Street is poised for a lower open despite today’s update from Automatic Data Processing (ADP) showed an 84,000 decline in private sector employment in December, which was less than expected.
Futures for the Dow Jones Industrial Average, the broader S&P 500 index and the technology heavy NASDAQ composite inched stood slightly lower prior to the market open.
Commodities
Oil prices inched slightly lower today following Tuesday’s gains as February Brent Crude slid to US$80.39/barrel, while US light, sweet crude declined to US$81.62/barrel.
The decline in oil prices was triggered by yesterday’s update from the API (American Petroleum Institute), which revealed an unexpected increase in distillate supplies by 1 million barrels and in gasoline inventories by 5.6 million barrels. This was enough to offset any positive impact from the fall of 2.3 million barrels in US crude stocks.
Major oil stocks retreated in response to lower oil prices. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) lost less than 1%, as did fellow FTSE 100 constituents BG Group (LSE: BG) and Cairn Energy (LSE: CNE), while Tullow Oil (LSE: TLW) was down 1%.
Amec (LSE: AMEC) was flat, while another services company Petrofac (LSE: PFC) slid to the bottom of the pile with a 3% loss.
Midcap energy producers were mixed. JKX Oil and Gas (LSE: JKX) and Dana Petroleum (LSE: DNX) were down about 1%, while Premier Oil (LSE: PMO) declined marginally. Dragon Oil (LSE: DGO) and Salamander Energy (LSE: SMDR) did better, tacking on nearly 1%, as did Wood Group (LSE: WG), which fellow services company Wellstream Holdings (LSE: WSM) declined 1.3%.
Africa and FSU operating oil and gas junior Victoria Oil & Gas (AIM: VOG) was oneof the strongest performers among the juniors with a 6% climb after updating the market on progress at its flagship Logbaba gas project in Cameroon.
Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) and Kazakhstan operating Max Petroleum (LSE: MXP) headed in the different direction, shedding 11% and 9% respectively. Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) and Ukraine focused gas producer, Regal Petroleum (AIM: RPT) both lost more than 4.5%.
Gold holds on as silver and platinum climb
Gold prices were at about the same level as yesterday with the yellow metal holding steady at around US$1,120/oz. Other precious metals slightly improved with silver and platinum reaching US$17.90/oz and US$1,536/oz respectively.
Gold stabilized at the current level after bouncing back from yesterday’s falls despite a stronger US Dollar as Tuesday’s decline spurred demand for precious metals.
Holdings in the world’s largest exchange-traded fund SPDR Gold Trust fell to 1,128.75 metric tonnes on Monday, marking a decline of 4.87 metric tonnes from the end of 2009.
Major mining stocks were mixed today. In the FTSE 100, gold miner Randgold Resources (LSE: RRS) was flat, while silver producer Fresnillo (LSE: FRES) posted a marginal gain and platinum miner Lonmin (LSE: LMI) shed almost 1%.
Midcaps were in decline. Gold miner Petropavlovsk (LSE: POG) was at the bottom of the pile with a 2% loss, while Aquarius Platinum (LSE: AQP) and silver producer Hochschild Mining (LSE: HOC) declined marginally.
Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) was one of the top performers among the small caps with a 6% gain. Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) and Fiji focused gold miner Vatukoula Gold Mines (AIM: VGM) followed, advancing 4%.
Copper and nickel rise, but miners mixed
Base metals advanced today as copper and nickel reached US$3.44/lb and US$8.51/lb, while zinc improved to US$1.18/lb.
Base metals focused stocks were mixed today. Anglo American (LSE: AAL), Kazakhmys (LSE: KAZ) and Rio Tinto (LSE: RIO) posted small gains, while Antofagasta (LSE: ANTO), BHP Billiton (LSE: BLT) and Eurasian Natural Resources (LSE: ENRC) declined marginally. Vedanta Resources (LSE: VED) and Xstrata (LSE: XTA) were flat.
London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) lost 3.5% on no news.
Botswana operating nickel and copper miner Discovery Metals (AIM: DME) was one of the top performers among the small caps today with a 6% gain. Philippines operating nickel miner Rusina Mining (ASX: RML; AIM: RMLA) followed, tacking on 4.5%. Nickel and iron ore exploration junior Landore Resources (AIM: LND) and Philippines focused nickel and copper miner Metals Exploration (AIM: MTL) advanced 3.5%.
Iron ore focused investor Red Rock Resources (AIM: RRR) and London Mining (AIM: LOND) climbed 3%.
Banks, insurance, private equity
Financial stocks were mixed today. Royal Bank of Scotland (LSE: RBS) led the banking sector with a 3% gain, while fellow part-nationalised bank Lloyds (LSE: LLOY) and Barclays (LSE: BARC) followed with gains of less than 1%.
HSBC (LSE: HSBA) was flat and Standard Chartered (LSE: STAN) declined 1.3%.
Most insurance stocks were in buying mode today. RSA Insurance Group (LSE: RSA) and Aviva (LSE: AV) took the lead, advancing 2.4% and 1.1% respectively. Prudential (LSE: PRU) and Legal & General (LSE: LGEN) followed with insignificant gains, while Old Mutual (LSE: OML) and Standard Life (LSE: SL) were flat.
Admiral Group (LSE: ADM) retreated 2%.
Private equity group 3i (LSE: III) made little headway.
Large and Mid Cap News
Business infrastructure software provider Autonomy Corp PLC (LSE: AU) said it expects to report 2009 full-year results in line with analyst consensus estimates of revenues of approximately US$740 million and adjusted EPS of US$0.97.
Retailer Marks and Spencer (LSE: MKS) said today its sales rose for the first time in two years, reporting a 2.6% increase in total group sales for the quarter ending 26 December, while UK sales improved 2.3% and like-for-like sales added 0.8%, with online sales soaring 32%, which the retailer called a successful performance during the important Christmas period.
Insurer Prudential (LSE: PRU) has entered a 12 year strategic partnership with United Overseas Bank Limited to develop a regional bancassurance business to distribute its life investment, savings and protection insurance products through UOB’s 414 bank branches across Singapore, Indonesia and Thailand, and also agrees to acquire UOB Life Assurance in Singapore for £192 million in cash.
Small Cap News
KEFI Minerals PLC (AIM: KEFI) said it has started a drilling programmes at the Bakir Tepe project in southwest Turkey with the aim of testing a large geophysical anomaly that is interpreted to potentially be related to a Cyprus-style copper-gold volcanic-hosted massive sulphide (VHMS) deposit.
Alliance Pharma PLC (AIM: APH) said trading during the last few months of the 2009 financial year remeined strong and as a result, it now expects to report turnover for the full year to 31 December 2009 of approximately £31 million, an increase of approximately 42 percent on the previous year.
Synchronica (AIM: SYNC) has said it has had an “active year-end,” having signed contracts and delivered orders to customers during late December, expecting the related revenue to be recognized in 2009.
Victoria Oil & Gas (AIM: VOG) said well La-105 at its flagship Logbaba gas project in Camroon has reached a total depth of 8,920 ft (feet), having encountered multiple gas bearing sands at depths between 6,017 ft and 8,330 ft that could be correlated to those found and tested in the nearby well La-103, which flowed at rates from 5 to 12 mmcf/d (million cubic feet per day) of gas from individual sands when drilled in 1956.
Central China Goldfields PLC (AIM: GGG) said it was notified by chairman Peter Ruxton that he bought a further 250,000 shares in the company today at 2.75 pence a share. He notified the group only two days ago that he bought 17,336 ordinary shares on December 10 at 2.8p per share.
West China Cement Limited (AIM: WCC) has acquired Shaanxi Xiushan Cement Limited Company for Rmb 180 million (£16.5 million), comprising the Xiushan cement plant in the Shaanxi province in proximity to its Ankang and Lantian plants and the Xunyang Xiushanlong cement milling facility.
African Minerals Ltd (AIM: AMI) said the mineral exploration and development company with significant iron ore and base metal interests in Sierra Leone, West Africa, said it has entered into a conditional strategic agreement with state-owned China Railway Materials Commercial Corp (CRM) in respect of AML's flagship iron ore project at Tonkolili and the related infrastructure projects.
The significance of gas shale plays in the United States was reiterated once again this morning, when Endeavour International Corp (NYSE Amex: END & LSE: ENDV) announced that it would shell out US$27 million to gain a larger foothold in the Haynesville and Marcellus gas shale plays in Louisiana/Texas and Pennsylvania. Endeavour also snapped up stakes in two frontier gas shale plays in Alabama and Montana as part of the deal, which will see the company acquire interests in approximately 526,000 gross acres (165,000 net).
Broker Fox-Davies Capital (FD Capital) noted the announcement made by Latin American precious metal miner Minera IRL (AIM: MIRL) last month of the completion of the acquisition of Hidefield Gold PLC (AIM: HIF), with the broker upholding its 'buy' recommendation and its target price of £0.90.
SeaEnergy (AIM: SEA) said The Crown Estate has notified of its intention to select the joint venture of its 80% owned subsidiary SeaEnergy Renewables Ltd as one of the zone partners in the third offshore wind farm leasing round in the UK (UK Leasing Round 3). http://www.proactiveinvestors.co.uk/companies/news/11888/ftse-100-slides-as-us-futures-point-to-lower-open-on-wall-street-miners-and-energy-stocks-mixed-11888.html
The US Commerce Department said yesterday that factory orders rose by 1.1% in November against the expected improvement of 0.5%, however, housing data turned out to be weak as the National Association of Retailers reported a 16% decline in its index of pending home sales.
Plumbing and heating equipment manufacturer Wolseley (LSE: WOS) emerged atop the leaderboard with a 4.5% advance. Bailed out bank RBS (LSE: RBS) continued its climb, adding a forther 3% on top of the 10% gains it posted on Monday and Tuesday. Software developer Autonomy Corporation (LSE: AU) also made it to the top three with a 2.4% improvement. Other notable risers included turbine manufacturer Rolls Royce (LSE: RR), which added more than 2% as well as telecom groups BT (LSE: BT) and Cable & Wireless (LSE: CW) with gains of 1.5% and defence contractor BAE Systems (LSE: BA), which climbed 1.2%.
Retailer Marks and Spencer (LSE: MKS) was the heaviest faller in the index with a 5.5% decline after publishing a trading update for Q3 with a lesser than expected increase in like for like sales. Oil and gas services firm Petrofac (LSE: PFC) followed with a 3% slide after Morgan Stanley (NYSE: MS) downgraded the stock to “underweight” from “equal-weight.” Other notable fallers included asset management firm Schroders (LSE: SDR), National Grid (LSE: NG) and property company Segro (LSE: SGO), which all lost 2%.
Wall Street is poised for a lower open despite today’s update from Automatic Data Processing (ADP) showed an 84,000 decline in private sector employment in December, which was less than expected.
Futures for the Dow Jones Industrial Average, the broader S&P 500 index and the technology heavy NASDAQ composite inched stood slightly lower prior to the market open.
Commodities
Oil prices inched slightly lower today following Tuesday’s gains as February Brent Crude slid to US$80.39/barrel, while US light, sweet crude declined to US$81.62/barrel.
The decline in oil prices was triggered by yesterday’s update from the API (American Petroleum Institute), which revealed an unexpected increase in distillate supplies by 1 million barrels and in gasoline inventories by 5.6 million barrels. This was enough to offset any positive impact from the fall of 2.3 million barrels in US crude stocks.
Major oil stocks retreated in response to lower oil prices. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) lost less than 1%, as did fellow FTSE 100 constituents BG Group (LSE: BG) and Cairn Energy (LSE: CNE), while Tullow Oil (LSE: TLW) was down 1%.
Amec (LSE: AMEC) was flat, while another services company Petrofac (LSE: PFC) slid to the bottom of the pile with a 3% loss.
Midcap energy producers were mixed. JKX Oil and Gas (LSE: JKX) and Dana Petroleum (LSE: DNX) were down about 1%, while Premier Oil (LSE: PMO) declined marginally. Dragon Oil (LSE: DGO) and Salamander Energy (LSE: SMDR) did better, tacking on nearly 1%, as did Wood Group (LSE: WG), which fellow services company Wellstream Holdings (LSE: WSM) declined 1.3%.
Africa and FSU operating oil and gas junior Victoria Oil & Gas (AIM: VOG) was oneof the strongest performers among the juniors with a 6% climb after updating the market on progress at its flagship Logbaba gas project in Cameroon.
Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) and Kazakhstan operating Max Petroleum (LSE: MXP) headed in the different direction, shedding 11% and 9% respectively. Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) and Ukraine focused gas producer, Regal Petroleum (AIM: RPT) both lost more than 4.5%.
Gold holds on as silver and platinum climb
Gold prices were at about the same level as yesterday with the yellow metal holding steady at around US$1,120/oz. Other precious metals slightly improved with silver and platinum reaching US$17.90/oz and US$1,536/oz respectively.
Gold stabilized at the current level after bouncing back from yesterday’s falls despite a stronger US Dollar as Tuesday’s decline spurred demand for precious metals.
Holdings in the world’s largest exchange-traded fund SPDR Gold Trust fell to 1,128.75 metric tonnes on Monday, marking a decline of 4.87 metric tonnes from the end of 2009.
Major mining stocks were mixed today. In the FTSE 100, gold miner Randgold Resources (LSE: RRS) was flat, while silver producer Fresnillo (LSE: FRES) posted a marginal gain and platinum miner Lonmin (LSE: LMI) shed almost 1%.
Midcaps were in decline. Gold miner Petropavlovsk (LSE: POG) was at the bottom of the pile with a 2% loss, while Aquarius Platinum (LSE: AQP) and silver producer Hochschild Mining (LSE: HOC) declined marginally.
Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) was one of the top performers among the small caps with a 6% gain. Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) and Fiji focused gold miner Vatukoula Gold Mines (AIM: VGM) followed, advancing 4%.
Copper and nickel rise, but miners mixed
Base metals advanced today as copper and nickel reached US$3.44/lb and US$8.51/lb, while zinc improved to US$1.18/lb.
Base metals focused stocks were mixed today. Anglo American (LSE: AAL), Kazakhmys (LSE: KAZ) and Rio Tinto (LSE: RIO) posted small gains, while Antofagasta (LSE: ANTO), BHP Billiton (LSE: BLT) and Eurasian Natural Resources (LSE: ENRC) declined marginally. Vedanta Resources (LSE: VED) and Xstrata (LSE: XTA) were flat.
London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) lost 3.5% on no news.
Botswana operating nickel and copper miner Discovery Metals (AIM: DME) was one of the top performers among the small caps today with a 6% gain. Philippines operating nickel miner Rusina Mining (ASX: RML; AIM: RMLA) followed, tacking on 4.5%. Nickel and iron ore exploration junior Landore Resources (AIM: LND) and Philippines focused nickel and copper miner Metals Exploration (AIM: MTL) advanced 3.5%.
Iron ore focused investor Red Rock Resources (AIM: RRR) and London Mining (AIM: LOND) climbed 3%.
Banks, insurance, private equity
Financial stocks were mixed today. Royal Bank of Scotland (LSE: RBS) led the banking sector with a 3% gain, while fellow part-nationalised bank Lloyds (LSE: LLOY) and Barclays (LSE: BARC) followed with gains of less than 1%.
HSBC (LSE: HSBA) was flat and Standard Chartered (LSE: STAN) declined 1.3%.
Most insurance stocks were in buying mode today. RSA Insurance Group (LSE: RSA) and Aviva (LSE: AV) took the lead, advancing 2.4% and 1.1% respectively. Prudential (LSE: PRU) and Legal & General (LSE: LGEN) followed with insignificant gains, while Old Mutual (LSE: OML) and Standard Life (LSE: SL) were flat.
Admiral Group (LSE: ADM) retreated 2%.
Private equity group 3i (LSE: III) made little headway.
Large and Mid Cap News
Business infrastructure software provider Autonomy Corp PLC (LSE: AU) said it expects to report 2009 full-year results in line with analyst consensus estimates of revenues of approximately US$740 million and adjusted EPS of US$0.97.
Retailer Marks and Spencer (LSE: MKS) said today its sales rose for the first time in two years, reporting a 2.6% increase in total group sales for the quarter ending 26 December, while UK sales improved 2.3% and like-for-like sales added 0.8%, with online sales soaring 32%, which the retailer called a successful performance during the important Christmas period.
Insurer Prudential (LSE: PRU) has entered a 12 year strategic partnership with United Overseas Bank Limited to develop a regional bancassurance business to distribute its life investment, savings and protection insurance products through UOB’s 414 bank branches across Singapore, Indonesia and Thailand, and also agrees to acquire UOB Life Assurance in Singapore for £192 million in cash.
Small Cap News
KEFI Minerals PLC (AIM: KEFI) said it has started a drilling programmes at the Bakir Tepe project in southwest Turkey with the aim of testing a large geophysical anomaly that is interpreted to potentially be related to a Cyprus-style copper-gold volcanic-hosted massive sulphide (VHMS) deposit.
Alliance Pharma PLC (AIM: APH) said trading during the last few months of the 2009 financial year remeined strong and as a result, it now expects to report turnover for the full year to 31 December 2009 of approximately £31 million, an increase of approximately 42 percent on the previous year.
Synchronica (AIM: SYNC) has said it has had an “active year-end,” having signed contracts and delivered orders to customers during late December, expecting the related revenue to be recognized in 2009.
Victoria Oil & Gas (AIM: VOG) said well La-105 at its flagship Logbaba gas project in Camroon has reached a total depth of 8,920 ft (feet), having encountered multiple gas bearing sands at depths between 6,017 ft and 8,330 ft that could be correlated to those found and tested in the nearby well La-103, which flowed at rates from 5 to 12 mmcf/d (million cubic feet per day) of gas from individual sands when drilled in 1956.
Central China Goldfields PLC (AIM: GGG) said it was notified by chairman Peter Ruxton that he bought a further 250,000 shares in the company today at 2.75 pence a share. He notified the group only two days ago that he bought 17,336 ordinary shares on December 10 at 2.8p per share.
West China Cement Limited (AIM: WCC) has acquired Shaanxi Xiushan Cement Limited Company for Rmb 180 million (£16.5 million), comprising the Xiushan cement plant in the Shaanxi province in proximity to its Ankang and Lantian plants and the Xunyang Xiushanlong cement milling facility.
African Minerals Ltd (AIM: AMI) said the mineral exploration and development company with significant iron ore and base metal interests in Sierra Leone, West Africa, said it has entered into a conditional strategic agreement with state-owned China Railway Materials Commercial Corp (CRM) in respect of AML's flagship iron ore project at Tonkolili and the related infrastructure projects.
The significance of gas shale plays in the United States was reiterated once again this morning, when Endeavour International Corp (NYSE Amex: END & LSE: ENDV) announced that it would shell out US$27 million to gain a larger foothold in the Haynesville and Marcellus gas shale plays in Louisiana/Texas and Pennsylvania. Endeavour also snapped up stakes in two frontier gas shale plays in Alabama and Montana as part of the deal, which will see the company acquire interests in approximately 526,000 gross acres (165,000 net).
Broker Fox-Davies Capital (FD Capital) noted the announcement made by Latin American precious metal miner Minera IRL (AIM: MIRL) last month of the completion of the acquisition of Hidefield Gold PLC (AIM: HIF), with the broker upholding its 'buy' recommendation and its target price of £0.90.
SeaEnergy (AIM: SEA) said The Crown Estate has notified of its intention to select the joint venture of its 80% owned subsidiary SeaEnergy Renewables Ltd as one of the zone partners in the third offshore wind farm leasing round in the UK (UK Leasing Round 3). http://www.proactiveinvestors.co.uk/companies/news/11888/ftse-100-slides-as-us-futures-point-to-lower-open-on-wall-street-miners-and-energy-stocks-mixed-11888.html
African Minerals wins strategic Chinese partner for flagship Tonkolili iron ore project in Sierra Leone
African Minerals Ltd (AIM: AMI) (AML) said the mineral exploration and development company with significant iron ore and base metal interests in Sierra Leone, West Africa, said it has entered into a conditional strategic agreement with state-owned China Railway Materials Commercial Corp (CRM) in respect of AML's flagship iron ore project at Tonkolili and the related infrastructure projects.
Subject to due diligence by CRM, the parties expect to execute on or around March 31 2010 definitive agreements for long term iron ore off-take, an investment by CRM in the company and the procurement of equipment and services relating to the project.
CRM will enter into two long-term off-take agreements with AML, both for a minimum of 20 years, with an option to extend for a further five years, for iron ore production from Tonkolili.
Under the off-take agreements, CRM will purchase between five and eight million tonnes per annum of hematite iron ore from AML's first stage of production at Tonkolili for a minimum of 20 years, expected to commence by 2011.
The Chinese group will also purchase a minimum of 10 million tonnes per annum of magnetite iron ore production from AML's second stage of production at Tonkolili for a minimum of 20 years, expected to commence by 2013.
CRM will subscribe for approximately 30.5 million new common shares of AML at £5.00 per share, for a cash consideration of approximately £152.6 million representing 12.5 percent of the enlarged issued share capital. The funds will provide the majority of the funding expected to be required for AML's first phase of iron ore production. CRM will be appointed to procure equipment and services for the project.
AML CEO Alan Watling commented: “We expect that this strong and strategic relationship with CRM will help underwrite Tonkolili's start-up hematite production of up to 8 million tonnes per annum by 2011. This, coupled with the parties' agreement to enter into an off-take agreement for a further 10 million tonnes per annum of the magnetite for a minimum of 20 years, should provide AML with a strong foundation from which to secure its funds for its second phase of iron ore production, targeting 45 million tonnes per annum." http://www.proactiveinvestors.co.uk/companies/news/11887/african-minerals-wins-strategic-chinese-partner-for-flagship-tonkolili-iron-ore-project-in-sierra-leone-11887.html
Subject to due diligence by CRM, the parties expect to execute on or around March 31 2010 definitive agreements for long term iron ore off-take, an investment by CRM in the company and the procurement of equipment and services relating to the project.
CRM will enter into two long-term off-take agreements with AML, both for a minimum of 20 years, with an option to extend for a further five years, for iron ore production from Tonkolili.
Under the off-take agreements, CRM will purchase between five and eight million tonnes per annum of hematite iron ore from AML's first stage of production at Tonkolili for a minimum of 20 years, expected to commence by 2011.
The Chinese group will also purchase a minimum of 10 million tonnes per annum of magnetite iron ore production from AML's second stage of production at Tonkolili for a minimum of 20 years, expected to commence by 2013.
CRM will subscribe for approximately 30.5 million new common shares of AML at £5.00 per share, for a cash consideration of approximately £152.6 million representing 12.5 percent of the enlarged issued share capital. The funds will provide the majority of the funding expected to be required for AML's first phase of iron ore production. CRM will be appointed to procure equipment and services for the project.
AML CEO Alan Watling commented: “We expect that this strong and strategic relationship with CRM will help underwrite Tonkolili's start-up hematite production of up to 8 million tonnes per annum by 2011. This, coupled with the parties' agreement to enter into an off-take agreement for a further 10 million tonnes per annum of the magnetite for a minimum of 20 years, should provide AML with a strong foundation from which to secure its funds for its second phase of iron ore production, targeting 45 million tonnes per annum." http://www.proactiveinvestors.co.uk/companies/news/11887/african-minerals-wins-strategic-chinese-partner-for-flagship-tonkolili-iron-ore-project-in-sierra-leone-11887.html
Autonomy Corp sees full-year results in line with analyst consensus
Business infrastructure software provider Autonomy Corp PLC (LSE: AU) said it expects to report 2009 full-year results in line with analyst consensus estimates of revenues of approximately US$740 million and adjusted EPS of US$0.97.
CEO Mike Lynch commented: "Against an extremely tough general economic environment, we are very pleased with Autonomy's trading in 2009, which saw significant growth, increased customer penetration, new product development and Autonomy outperforming its peers in the software industry".
The company expects to report strong cash conversion for the year, consistent with its peers of similar growth rates, and one of the highest rates of conversion from revenues to cash seen in the industry, it said in its trading statement. http://www.proactiveinvestors.co.uk/companies/news/11886/autonomy-corp-sees-full-year-results-in-line-with-analyst-consensus-11886.html
CEO Mike Lynch commented: "Against an extremely tough general economic environment, we are very pleased with Autonomy's trading in 2009, which saw significant growth, increased customer penetration, new product development and Autonomy outperforming its peers in the software industry".
The company expects to report strong cash conversion for the year, consistent with its peers of similar growth rates, and one of the highest rates of conversion from revenues to cash seen in the industry, it said in its trading statement. http://www.proactiveinvestors.co.uk/companies/news/11886/autonomy-corp-sees-full-year-results-in-line-with-analyst-consensus-11886.html
Gold holds steady at $1,120 despite stronger US Dollar, silver and platinum climb
Gold prices were at about the same level as yesterday with the yellow metal holding steady at around US$1,120/oz. Other precious metals slightly improved with silver and platinum reaching US$17.90/oz and US$1,536/oz respectively.
Gold stabilized at the current level after bouncing back from yesterday’s falls despite a stronger US Dollar as Tuesday’s decline spurred demand for precious metals.
Holdings in the world’s largest exchange-traded fund SPDR Gold Trust fell to 1,128.75 metric tonnes on Monday, marking a decline of 4.87 metric tonnes from the end of 2009.
Major mining stocks were mixed today. In the FTSE 100, gold miner Randgold Resources (LSE: RRS) was flat, while silver producer Fresnillo (LSE: FRES) posted a marginal gain and platinum miner Lonmin (LSE: LMI) shed almost 1%.
Midcaps were in decline. Gold miner Petropavlovsk (LSE: POG) was at the bottom of the pile with a 2% loss, while Aquarius Platinum (LSE: AQP) and silver producer Hochschild Mining (LSE: HOC) declined marginally.
Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) was one of the top performers among the small caps with a 6% gain. Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) and Fiji focused gold miner Vatukoula Gold Mines (AIM: VGM) followed, advancing 4%. http://www.proactiveinvestors.co.uk/companies/news/11884/gold-holds-steady-at-1120-despite-stronger-us-dollar-silver-and-platinum-climb-11884.html
Gold stabilized at the current level after bouncing back from yesterday’s falls despite a stronger US Dollar as Tuesday’s decline spurred demand for precious metals.
Holdings in the world’s largest exchange-traded fund SPDR Gold Trust fell to 1,128.75 metric tonnes on Monday, marking a decline of 4.87 metric tonnes from the end of 2009.
Major mining stocks were mixed today. In the FTSE 100, gold miner Randgold Resources (LSE: RRS) was flat, while silver producer Fresnillo (LSE: FRES) posted a marginal gain and platinum miner Lonmin (LSE: LMI) shed almost 1%.
Midcaps were in decline. Gold miner Petropavlovsk (LSE: POG) was at the bottom of the pile with a 2% loss, while Aquarius Platinum (LSE: AQP) and silver producer Hochschild Mining (LSE: HOC) declined marginally.
Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) was one of the top performers among the small caps with a 6% gain. Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) and Fiji focused gold miner Vatukoula Gold Mines (AIM: VGM) followed, advancing 4%. http://www.proactiveinvestors.co.uk/companies/news/11884/gold-holds-steady-at-1120-despite-stronger-us-dollar-silver-and-platinum-climb-11884.html
Oil falls as distillate supplies rise, energy stocks inch lower in London
Oil prices inched slightly lower today following Tuesday’s gains as February Brent Crude slid to US$80.39/barrel, while US light, sweet crude declined to US$81.62/barrel.
The decline in oil prices was triggered by yesterday’s update from the API (American Petroleum Institute), which revealed an unexpected increase in distillate supplies by 1 million barrels and in gasoline inventories by 5.6 million barrels. This was enough to offset any positive impact from the fall of 2.3 million barrels in US crude stocks.
The nine day winning streak for oil prices was driven by the unusually cold weather in key energy consumers including Europe, the United States and China, which boosted the demand for heating oil.
Further direction for the oil prices will be set by today’s report from the US Energy Informaiton Administration.
Major oil stocks retreated in response to lower oil prices. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) lost less than 1%, as did fellow FTSE 100 constituents BG Group (LSE: BG) and Cairn Energy (LSE: CNE), while Tullow Oil (LSE: TLW) was down 1%.
Amec (LSE: AMEC) was flat, while another services company Petrofac (LSE: PFC) slid to the bottom of the pile with a 3% loss.
Midcap energy producers were mixed. JKX Oil and Gas (LSE: JKX) and Dana Petroleum (LSE: DNX) were down about 1%, while Premier Oil (LSE: PMO) declined marginally. Dragon Oil (LSE: DGO) and Salamander Energy (LSE: SMDR) did better, tacking on nearly 1%, as did Wood Group (LSE: WG), which fellow services company Wellstream Holdings (LSE: WSM) declined 1.3%.
Africa and FSU operating oil and gas junior Victoria Oil & Gas (AIM: VOG) was oneof the strongest performers among the juniors with a 6% climb after updating the market on progress at its flagship Logbaba gas project in Cameroon.
Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) and Kazakhstan operating Max Petroleum (LSE: MXP) headed in the different direction, shedding 11% and 9% respectively. Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) and Ukraine focused gas producer, Regal Petroleum (AIM: RPT) both lost more than 4.5%. http://www.proactiveinvestors.co.uk/companies/news/11882/oil-falls-as-distillate-supplies-rise-energy-stocks-inch-lower-in-london-11882.html
The decline in oil prices was triggered by yesterday’s update from the API (American Petroleum Institute), which revealed an unexpected increase in distillate supplies by 1 million barrels and in gasoline inventories by 5.6 million barrels. This was enough to offset any positive impact from the fall of 2.3 million barrels in US crude stocks.
The nine day winning streak for oil prices was driven by the unusually cold weather in key energy consumers including Europe, the United States and China, which boosted the demand for heating oil.
Further direction for the oil prices will be set by today’s report from the US Energy Informaiton Administration.
Major oil stocks retreated in response to lower oil prices. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) lost less than 1%, as did fellow FTSE 100 constituents BG Group (LSE: BG) and Cairn Energy (LSE: CNE), while Tullow Oil (LSE: TLW) was down 1%.
Amec (LSE: AMEC) was flat, while another services company Petrofac (LSE: PFC) slid to the bottom of the pile with a 3% loss.
Midcap energy producers were mixed. JKX Oil and Gas (LSE: JKX) and Dana Petroleum (LSE: DNX) were down about 1%, while Premier Oil (LSE: PMO) declined marginally. Dragon Oil (LSE: DGO) and Salamander Energy (LSE: SMDR) did better, tacking on nearly 1%, as did Wood Group (LSE: WG), which fellow services company Wellstream Holdings (LSE: WSM) declined 1.3%.
Africa and FSU operating oil and gas junior Victoria Oil & Gas (AIM: VOG) was oneof the strongest performers among the juniors with a 6% climb after updating the market on progress at its flagship Logbaba gas project in Cameroon.
Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) and Kazakhstan operating Max Petroleum (LSE: MXP) headed in the different direction, shedding 11% and 9% respectively. Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) and Ukraine focused gas producer, Regal Petroleum (AIM: RPT) both lost more than 4.5%. http://www.proactiveinvestors.co.uk/companies/news/11882/oil-falls-as-distillate-supplies-rise-energy-stocks-inch-lower-in-london-11882.html
Minera IRL still rated 'buy' at Fox-Davies Capital after acquisition to take control of Don Nicholas gold project
Broker Fox-Davies Capital (FD Capital) noted the announcement made by Latin American precious metal miner Minera IRL (AIM: MIRL) last month of the completion of the acquisition of Hidefield Gold PLC (AIM: HIF), with the broker upholding its 'buy' recommendation and its target price of £0.90.
The key asset in the transaction is the Don Nicolas project with a defined resource of 360,000 oz (ounces) of gold and a large exploration holding of some 250,000 ha (hectares) containing a number of promising exploration prospects, located in the mining friendly state of Santa Cruz in Southern Argentina.
The project has a JORC compliant indicated resource of 1.078 Mt (million tonnes) grading 5.8g/t (grammes per tonne) containing 200,700 oz and a JORC compliant Inferred resource of 1.075 Mt grading 4.6g/t containing 158,000 oz of gold. The company has approved a budget ofUS$5 million for 2010 for the advancement of the project.
FD Capital said that the aim is to develop Don Nicolas ahead of the Ollachea gold project in southern Peru to ensure continuity of production between its flagship Corihuarmi gold project and Ollachea, where the company intends to push forward with infill drilling.
In addition to the Don Nicolas project, the Hidefield leases acquired are contiguous with the Mariana leases where the Dos Calandrias project is located. It is believed that this deposit extends onto the Hidefield leases, but will not be a priority target of the exploration program.
FD Capital has assigned a value of US$50/oz to the JORC compliant resources at Don Nicholas, while including the updated number of shares after Minera IRL issued 9.7 million shares to Hidefield shareholders to bring up the total number of share sin issue to 85.57 million.
The target price favorably compares to the stock’s current value of £0.63 per share. http://www.proactiveinvestors.co.uk/companies/news/11880/minera-irl-still-rated-buy-at-fox-davies-capital-after-acquisition-to-take-control-of-don-nicholas-gold-project-11880.html
Endeavour International adds four gas shale plays in US to expanding portfolio
The significance of gas shale plays in the United States was reiterated once again this morning, when Endeavour International Corp (NYSE Amex: END & LSE: ENDV) announced that it would shell out US$27 million to gain a larger foothold in the Haynesville and Marcellus gas shale plays in Louisiana/Texas and Pennsylvania. Endeavour also snapped up stakes in two frontier gas shale plays in Alabama and Montana as part of the deal, which will see the company acquire interests in approximately 526,000 gross acres (165,000 net).
"These acquisitions represent a major step in Endeavour's strategy to establish a growth oriented portfolio of onshore properties in the United States to complement our development and producing assets in the UK," said
William L. Transier, chairman, chief executive officer and president. "…Anticipated production from these plays combined with our North Sea development projects has the potential to grow Endeavour's production to meet our previously stated five-year production goal of 40,000 barrels of oil equivalent per day, balanced between the US and UK.
Endeavour has entered into an agreement with Cohort Energy to acquire a 50% interest in 66,000 gross acres in the Haynesville and Marcellus gas shale plays in north Louisiana/east Texas and Western Pennsylvania for US$15 million. Endeavour will also pay a share of Cohort’s drilling and completion programs. “This transaction is in addition to the acquisition of producing assets from Cohort in North Louisiana and East Texas previously announced on October 30, 2009,” Endeavour noted.
"This transaction represents the second part of a broad joint venture Endeavour has established with Cohort and J-W Operating Company," said Transier. "Cohort has a track record of success as an operator in the Barnett shale play that will serve us well in the exploitation of these highly prospective positions in the Haynesville and Marcellus shale plays."
Endeavour added that it could participate in drilling more than 500 horizontal wells over the next 10 - 15 years in the two resource plays.
Endeavour also acquired a 50% stake in two frontier gas shale plays in Alabama and Montana, which it said would give it “first mover” advantage in two highly prospective areas. In Alabama, four wells are scheduled for drilling in the first half of 2010 with partner Hillwood Energy. http://www.proactiveinvestors.co.uk/companies/news/11879/endeavour-international-adds-four-gas-shale-plays-in-us-to-expanding-portfolio-11879.html
"These acquisitions represent a major step in Endeavour's strategy to establish a growth oriented portfolio of onshore properties in the United States to complement our development and producing assets in the UK," said
William L. Transier, chairman, chief executive officer and president. "…Anticipated production from these plays combined with our North Sea development projects has the potential to grow Endeavour's production to meet our previously stated five-year production goal of 40,000 barrels of oil equivalent per day, balanced between the US and UK.
Endeavour has entered into an agreement with Cohort Energy to acquire a 50% interest in 66,000 gross acres in the Haynesville and Marcellus gas shale plays in north Louisiana/east Texas and Western Pennsylvania for US$15 million. Endeavour will also pay a share of Cohort’s drilling and completion programs. “This transaction is in addition to the acquisition of producing assets from Cohort in North Louisiana and East Texas previously announced on October 30, 2009,” Endeavour noted.
"This transaction represents the second part of a broad joint venture Endeavour has established with Cohort and J-W Operating Company," said Transier. "Cohort has a track record of success as an operator in the Barnett shale play that will serve us well in the exploitation of these highly prospective positions in the Haynesville and Marcellus shale plays."
Endeavour added that it could participate in drilling more than 500 horizontal wells over the next 10 - 15 years in the two resource plays.
Endeavour also acquired a 50% stake in two frontier gas shale plays in Alabama and Montana, which it said would give it “first mover” advantage in two highly prospective areas. In Alabama, four wells are scheduled for drilling in the first half of 2010 with partner Hillwood Energy. http://www.proactiveinvestors.co.uk/companies/news/11879/endeavour-international-adds-four-gas-shale-plays-in-us-to-expanding-portfolio-11879.html
Prudential acquires UOB life insurance business, enters strategic partnership
Insurer Prudential (LSE: PRU) has entered a 12 year strategic partnership with United Overseas Bank Limited to develop a regional bancassurance business to distribute its life investment, savings and protection insurance products through UOB’s 414 bank branches across Singapore, Indonesia and Thailand, and also agrees to acquire UOB Life Assurance in Singapore for £192 million in cash.
The company has already established a solid footing in the Singapore, possessing a strong distribution network of tied agency and distribution partners, looking to enhance its position through the combination of UOB Life Assurance with its existing businesses.
“Our agreement with UOB enhances our presence in Asia and strengthens our regional platform. This bancassurance partnership offers us significant new profitable growth opportunities in Singapore and Indonesia, and substantially increases our scale in Thailand, a key market in the region... this transaction will allow us to continue to create significant shareholder value in some of the most dynamic and attractive Asian markets,” said chief executive of Prudential, Tidjane Thiam. http://www.proactiveinvestors.co.uk/companies/news/11878/prudential-acquires-uob-life-insurance-business-enters-strategic-partnership-11878.html
The company has already established a solid footing in the Singapore, possessing a strong distribution network of tied agency and distribution partners, looking to enhance its position through the combination of UOB Life Assurance with its existing businesses.
“Our agreement with UOB enhances our presence in Asia and strengthens our regional platform. This bancassurance partnership offers us significant new profitable growth opportunities in Singapore and Indonesia, and substantially increases our scale in Thailand, a key market in the region... this transaction will allow us to continue to create significant shareholder value in some of the most dynamic and attractive Asian markets,” said chief executive of Prudential, Tidjane Thiam. http://www.proactiveinvestors.co.uk/companies/news/11878/prudential-acquires-uob-life-insurance-business-enters-strategic-partnership-11878.html
Marks and Spencer Q3 like-for-like sales up 0.8% , helped by record Christmas trading
Retailer Marks and Spencer (LSE: MKS) said today its sales rose for the first time in two years, reporting a 2.6% increase in total group sales for the quarter ending 26 December, while UK sales improved 2.3% and like-for-like sales added 0.8%, with online sales soaring 32%, which the retailer called a successful performance during the important Christmas period.
General merchandise sales improved 1.2%, mostly due to a 4% increase in clothing sales, while food sales added 1.3%.
The group posted its biggest ever Christmas fortnight, with record one day sales of over £50 million on 23 December, while customers bought more than 36 million mince pies, a million bottles of champagne and over 8 million jumpers and cardigans.
The guidance on gross margin, operating costs and capex (capital expenditure) for the current financial year was left unchanged, with the retailer expecting a one-off finance charge of £14 million and offering a cautious outlook.
“We expect the trading conditions over the coming year to remain challenging as a result of continuing economic uncertainty,” said Chairman of Marks and Spencer Stuart Rose.
The increase in like for like sales was just short of market expectations, sending the stock down 5%. http://www.proactiveinvestors.co.uk/companies/news/11877/marks-and-spencer-q3-like-for-like-sales-up-08-helped-by-record-christmas-trading-11877.html
General merchandise sales improved 1.2%, mostly due to a 4% increase in clothing sales, while food sales added 1.3%.
The group posted its biggest ever Christmas fortnight, with record one day sales of over £50 million on 23 December, while customers bought more than 36 million mince pies, a million bottles of champagne and over 8 million jumpers and cardigans.
The guidance on gross margin, operating costs and capex (capital expenditure) for the current financial year was left unchanged, with the retailer expecting a one-off finance charge of £14 million and offering a cautious outlook.
“We expect the trading conditions over the coming year to remain challenging as a result of continuing economic uncertainty,” said Chairman of Marks and Spencer Stuart Rose.
The increase in like for like sales was just short of market expectations, sending the stock down 5%. http://www.proactiveinvestors.co.uk/companies/news/11877/marks-and-spencer-q3-like-for-like-sales-up-08-helped-by-record-christmas-trading-11877.html
West China Cement acquires Xiushan Cement for £16.5 mln
West China Cement Limited (AIM: WCC) has acquired Shaanxi Xiushan Cement Limited Company for Rmb 180 million (£16.5 million), comprising the Xiushan cement plant in the Shaanxi province in proximity to its Ankang and Lantian plants and the Xunyang Xiushanlong cement milling facility.
The target company posted a pre-tax profit of Rmb 23.8 million (£2.18 illion) in 2008. In terms of the agreement, profits from Xiushan accrue to WCC with effect from August 2009.
The Xiushan cement plant has a capacity of 600,000 tonnes per annum and limestone reserves to support this operation for at least 30 years. WCC expects to modify the plant to improve operating efficiency, environmental performance and output through using modern technology.
The Xiushanlong milling plant has the capacity to mill approximately 100,000 tonnes of clinker or slag, which can then be blended with Ankang's production.
“Xuishan offers an excellent opportunity to improve our service to the cement market in the South-East of the province...the milling plant also gives us the capacity to produce slag cement, allowing us to offer a range of blended cements which has technical benefits and should be useful in several of the large hydro-electric and railway projects in the area,” said Chief Executive of WCC Jimin Zhang.
WCC’s capacity will reach 8 Mt (million tonnes) during the course of next year, which is the bottom of the declared 8-10 Mt target for 2010, WCC added. http://www.proactiveinvestors.co.uk/companies/news/11876/west-china-cement-acquires-xiushan-cement-for-165-mln--11876.html
The target company posted a pre-tax profit of Rmb 23.8 million (£2.18 illion) in 2008. In terms of the agreement, profits from Xiushan accrue to WCC with effect from August 2009.
The Xiushan cement plant has a capacity of 600,000 tonnes per annum and limestone reserves to support this operation for at least 30 years. WCC expects to modify the plant to improve operating efficiency, environmental performance and output through using modern technology.
The Xiushanlong milling plant has the capacity to mill approximately 100,000 tonnes of clinker or slag, which can then be blended with Ankang's production.
“Xuishan offers an excellent opportunity to improve our service to the cement market in the South-East of the province...the milling plant also gives us the capacity to produce slag cement, allowing us to offer a range of blended cements which has technical benefits and should be useful in several of the large hydro-electric and railway projects in the area,” said Chief Executive of WCC Jimin Zhang.
WCC’s capacity will reach 8 Mt (million tonnes) during the course of next year, which is the bottom of the declared 8-10 Mt target for 2010, WCC added. http://www.proactiveinvestors.co.uk/companies/news/11876/west-china-cement-acquires-xiushan-cement-for-165-mln--11876.html
Central China Goldfields chairman Ruxton buys further 250,000 shares in company
Central China Goldfields PLC (AIM: GGG) said it was notified by chairman Peter Ruxton that he bought a further 250,000 shares in the company today at 2.75 pence a share. He notified the group only two days ago that he bought 17,336 ordinary shares on December 10 at 2.8p per share.
Ruxton's total holding is now 267,336 shares, or approximately 0.15 percent of the issued share capital.
Central China in December terminated its interest in the Dong Mao Huo gold project, thus exiting its last project in China.
The company now has no further financial obligations to meet in respect of exploration properties in China, but retains a 10 percent interest in the Nimu project in the country until the full consideration for the planned sale of Nimu is received.
The primary focus is now on the Cikoleang gold property in Indonesia where the company, having paid an initial US$45,000 to its local partner, PT Fino Bersaudara, is undertaking an extensive work programme to determine whether this property can be moved into early production.
In addition, Central China is still actively reviewing a number of gold and copper opportunities with a view to acquiring further assets which can be fast tracked into production. http://www.proactiveinvestors.co.uk/companies/news/11875/central-china-goldfields-chairman-ruxton-buys-further-250000-shares-in-company-11875.html
Victoria Oil & Gas says La-105 well at Logbaba field encounters gas bearing sands, shares rise
Victoria Oil & Gas (AIM: VOG) said well La-105 at its flagship Logbaba gas project in Camroon has reached a total depth of 8,920 ft (feet), having encountered multiple gas bearing sands at depths between 6,017 ft and 8,330 ft that could be correlated to those found and tested in the nearby well La-103, which flowed at rates from 5 to 12 mmcf/d (million cubic feet per day) of gas from individual sands when drilled in 1956.
Shares in the company added 6.7% on the news.
The data obtained whilst drilling showed in excess of 300 feet of gross pay and also indicated the presence of over-pressured shale gas in a significant interval. The well is currently being logged prior to its completion as a development well, after which a 7-inch liner will be run to isolate the sands for future testing and production.
“We are pleased that Well LA-105 has now reached total depth and encountered over 300 feet of gross pay. Notably, the presence of gas in the shale could add upside to previous management interpretations. We will provide further detailed information to the market once the well logs have been completed,” said VOG chairman Kevin Foo.
The company is now gearing up to drill La-106, the next well at the Logbaba field.
The proven and probable reserves for Logbaba are currently estimated at 106 billion cubic feet. GeoDynamics Research (GDR) is currently commencing a passive seismic spectroscopy survey over the entire license area, which will take measurements of 50 locations around the field to identify hydrocarbon bearing areas. Initial findings of the survey are expected by mid-January this year.
VOG also develops the West Medvezhye gas field in Russia, planning a second passive seismic spectroscopy study over a large area of the northern and eastern section of the licence block this year. Studies suggest show that this section includes an extension of the super-giant Medvezhye field and VOG believes it stands the best chance of finding stratigraphic traps with superior reservoir quality there.
Fox-Davies Capital raised its price target for the stock to 8 pence from 7p in reaction to the news, and reiterated its 'buy' recommendatiion for Victoria Oil & Gas.
The broker said in a note that La-105 has reached target depth about two months later than expected, due to problems encountered while drilling and that also resulted in a more cautious operational approach adopted by the company subsequently. "We believe it was essential for VOG to carry out the drilling of this well successfully rather than on time, despite the additional costs; having done so is a notable achievement."
"Overall these results are very positive for the company and de-risk the Logbaba project beyond our initial assumptions. Therefore we are increasing our probability of success from 75 percent to 90 to resulting in an increase in our risked NAV calculation which is somewhat compensated by a higher number of shares from additional share placings," the broker added. http://www.proactiveinvestors.co.uk/companies/news/11874/victoria-oil-gas-says-la-105-well-at-logbaba-field-encounters-gas-bearing-sands-shares-rise-11874.html
Shares in the company added 6.7% on the news.
The data obtained whilst drilling showed in excess of 300 feet of gross pay and also indicated the presence of over-pressured shale gas in a significant interval. The well is currently being logged prior to its completion as a development well, after which a 7-inch liner will be run to isolate the sands for future testing and production.
“We are pleased that Well LA-105 has now reached total depth and encountered over 300 feet of gross pay. Notably, the presence of gas in the shale could add upside to previous management interpretations. We will provide further detailed information to the market once the well logs have been completed,” said VOG chairman Kevin Foo.
The company is now gearing up to drill La-106, the next well at the Logbaba field.
The proven and probable reserves for Logbaba are currently estimated at 106 billion cubic feet. GeoDynamics Research (GDR) is currently commencing a passive seismic spectroscopy survey over the entire license area, which will take measurements of 50 locations around the field to identify hydrocarbon bearing areas. Initial findings of the survey are expected by mid-January this year.
VOG also develops the West Medvezhye gas field in Russia, planning a second passive seismic spectroscopy study over a large area of the northern and eastern section of the licence block this year. Studies suggest show that this section includes an extension of the super-giant Medvezhye field and VOG believes it stands the best chance of finding stratigraphic traps with superior reservoir quality there.
Fox-Davies Capital raised its price target for the stock to 8 pence from 7p in reaction to the news, and reiterated its 'buy' recommendatiion for Victoria Oil & Gas.
The broker said in a note that La-105 has reached target depth about two months later than expected, due to problems encountered while drilling and that also resulted in a more cautious operational approach adopted by the company subsequently. "We believe it was essential for VOG to carry out the drilling of this well successfully rather than on time, despite the additional costs; having done so is a notable achievement."
"Overall these results are very positive for the company and de-risk the Logbaba project beyond our initial assumptions. Therefore we are increasing our probability of success from 75 percent to 90 to resulting in an increase in our risked NAV calculation which is somewhat compensated by a higher number of shares from additional share placings," the broker added. http://www.proactiveinvestors.co.uk/companies/news/11874/victoria-oil-gas-says-la-105-well-at-logbaba-field-encounters-gas-bearing-sands-shares-rise-11874.html
Synchronica says revenue from recent orders to be recognized in 2009, year-end 'very active'
Synchronica (AIM: SYNC) has said it has had an “active year-end,” having signed contracts and delivered orders to customers during late December, expecting the related revenue to be recognized in 2009.
The company secured its sixth order for its flagship push email product Mobile Gateway in Africa and the 13th operator contract in 2009 last week.
According to a report from UK-based telecommunications publisher Blycroft Publishing, Africa’s mobile phone market grew by 25% in 2008 with 74 million new subscribers to take the total number to 370 million people. The trend is expected to continue with the mobile phone penetration expected to rise from the current 37% to more than 60% in 2012.
The company announced its fifth contract won in Africa in mid-November, prompting broker FinnCap to issue a research note on the company titled “Momentum in Africa,” which highlighted the market’s growth prospects. The broker said the key message sent by the deal was that Synchronica and its channel partners were well positioned to benefit from the growth in this territory where the number of subscribers, networks and handset grew at a fast pace.
The company plans to release an update on trading for the full year later this month. http://www.proactiveinvestors.co.uk/companies/news/11861/synchronica-says-revenue-from-recent-orders-to-be-recognized-in-2009-year-end-very-active-11861.html
The company secured its sixth order for its flagship push email product Mobile Gateway in Africa and the 13th operator contract in 2009 last week.
According to a report from UK-based telecommunications publisher Blycroft Publishing, Africa’s mobile phone market grew by 25% in 2008 with 74 million new subscribers to take the total number to 370 million people. The trend is expected to continue with the mobile phone penetration expected to rise from the current 37% to more than 60% in 2012.
The company announced its fifth contract won in Africa in mid-November, prompting broker FinnCap to issue a research note on the company titled “Momentum in Africa,” which highlighted the market’s growth prospects. The broker said the key message sent by the deal was that Synchronica and its channel partners were well positioned to benefit from the growth in this territory where the number of subscribers, networks and handset grew at a fast pace.
The company plans to release an update on trading for the full year later this month. http://www.proactiveinvestors.co.uk/companies/news/11861/synchronica-says-revenue-from-recent-orders-to-be-recognized-in-2009-year-end-very-active-11861.html
Alliance Pharma lifted by pre-close trading statement, sees full-year turnover up 42 pct
Alliance Pharma PLC (AIM: APH) said trading during the last few months of the 2009 financial year remeined strong and as a result, it now expects to report turnover for the full year to 31 December 2009 of approximately £31 million, an increase of approximately 42 percent on the previous year.
Shares in the speciality pharmaceutical company were lifted nearly 8 percent by the news in pre-opening London deals.
The company has previously reported that it is restricting investment in development projects to very modest levels and therefore does not propose to continue with clinical trials of Isprelor, for the induction of labour, without third-party support. In light of this, the carrying value of Isprelor on the balance sheet will be assessed as part of the year-end procedures to see whether any impairment should be recognised. Prior to any impairment charges, the book value of Isprelor development costs at December 31 2009 was £2.8 million.
Excluding any impairment charges for Isprelor, results for the 2009 are expected to significantly exceed current market expectations, with pre-tax trading profits expected to be no less than £8.5 million.
The company had already flagged in November that results were likely to show a strong improvement, reflecting the positive sales trends reported in its interim statements, while sales of Buccastem and Timodine, the two brands acquired in August, had been in line with expectations.
Alliance Pharma's full-year results are scheduled to be released on March 24 2010. http://www.proactiveinvestors.co.uk/companies/news/11860/alliance-pharma-lifted-by-pre-close-trading-statement-sees-full-year-turnover-up-42-pct-11860.html
Shares in the speciality pharmaceutical company were lifted nearly 8 percent by the news in pre-opening London deals.
The company has previously reported that it is restricting investment in development projects to very modest levels and therefore does not propose to continue with clinical trials of Isprelor, for the induction of labour, without third-party support. In light of this, the carrying value of Isprelor on the balance sheet will be assessed as part of the year-end procedures to see whether any impairment should be recognised. Prior to any impairment charges, the book value of Isprelor development costs at December 31 2009 was £2.8 million.
Excluding any impairment charges for Isprelor, results for the 2009 are expected to significantly exceed current market expectations, with pre-tax trading profits expected to be no less than £8.5 million.
The company had already flagged in November that results were likely to show a strong improvement, reflecting the positive sales trends reported in its interim statements, while sales of Buccastem and Timodine, the two brands acquired in August, had been in line with expectations.
Alliance Pharma's full-year results are scheduled to be released on March 24 2010. http://www.proactiveinvestors.co.uk/companies/news/11860/alliance-pharma-lifted-by-pre-close-trading-statement-sees-full-year-turnover-up-42-pct-11860.html
Morning news wrap: Marks and Spencer, Prudential, United Overseas Bank, easyJet, Domino's Pizza
In the FTSE 100, retailer Marks and Spencer (LSE: MKS) published an interim management statement for Q3 2010, saying group sales were up 2.6%, while UK sales rose 2.3% and like for likes improved 0.8%. Online sales surged 32% and international sales climbed 6%.
Insurer Prudential (LSE: PRU) today announced a long-term strategic partnership with United Overseas Bank Limited to develop a regional bancassurance business. The company’s insurance products will be distributed through UOB Group’s bank branches in Singapore, Indonesia and Thailand. Prudential will also acquire UOB Singapore for £192 million in cash.
In the FTSE 250, easyJet (LSE: EZJ) said load factor increase 3.1% year on year in December and 1.4% for the year to the month.
Domino’s Pizza (LSE: DOM) said system sales in Q4 increased 15.6% to £112.4 million, while sales for the year ended 27 December rose 16% to £407 million.
In AIM, Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) announced the commencement of a drilling programme at the Bakir Tepe project in south west Turkey to test a large geophysical anomaly, which could be related to a Cyprus-style copper-gold volcanic-hosted massive sulphide deposit.
Africa and FSU operating oil and gas junior Victoria Oil & Gas (AIM: VOG) said well La-105 at the Logbaba project in Cameroon reached a total depth of 8,920 feet, having encountered gas bearing sands that can be correlated to those found and tested in the nearby well La-103.
Emerging speciality pharmaceutical company Alliance Pharma (AIM: APH) said it expected to report a full year turnover of £31 million, which would mark a 42% improvement over the previous year. http://www.proactiveinvestors.co.uk/companies/news/11857/morning-news-wrap-marks-and-spencer-prudential-united-overseas-bank-easyjet-dominos-pizza-11857.html
Insurer Prudential (LSE: PRU) today announced a long-term strategic partnership with United Overseas Bank Limited to develop a regional bancassurance business. The company’s insurance products will be distributed through UOB Group’s bank branches in Singapore, Indonesia and Thailand. Prudential will also acquire UOB Singapore for £192 million in cash.
In the FTSE 250, easyJet (LSE: EZJ) said load factor increase 3.1% year on year in December and 1.4% for the year to the month.
Domino’s Pizza (LSE: DOM) said system sales in Q4 increased 15.6% to £112.4 million, while sales for the year ended 27 December rose 16% to £407 million.
In AIM, Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) announced the commencement of a drilling programme at the Bakir Tepe project in south west Turkey to test a large geophysical anomaly, which could be related to a Cyprus-style copper-gold volcanic-hosted massive sulphide deposit.
Africa and FSU operating oil and gas junior Victoria Oil & Gas (AIM: VOG) said well La-105 at the Logbaba project in Cameroon reached a total depth of 8,920 feet, having encountered gas bearing sands that can be correlated to those found and tested in the nearby well La-103.
Emerging speciality pharmaceutical company Alliance Pharma (AIM: APH) said it expected to report a full year turnover of £31 million, which would mark a 42% improvement over the previous year. http://www.proactiveinvestors.co.uk/companies/news/11857/morning-news-wrap-marks-and-spencer-prudential-united-overseas-bank-easyjet-dominos-pizza-11857.html
KEFI Minerals starts drilling at Bakir Tepe copper-gold project in Turkey
KEFI Minerals PLC (AIM: KEFI) said it has started a drilling programmes at the Bakir Tepe project in southwest Turkey with the aim of testing a large geophysical anomaly that is interpreted to potentially be related to a Cyprus-style copper-gold volcanic-hosted massive sulphide (VHMS) deposit.
The exploration company with projects in Turkey and the Kingdom of Saudi Arabia is oparating Bakir Tepe as a joint venture with Centerra Gold Inc (TSX: CG). Centerra has the right to earn a 51 percent interest in the project upon contributing US$750,000 to the JV over two years with a minimum expenditure of US$350,000 in the first year. KEFI Minerals is the manager of the joint venture.
The 900 metre drilling programme is planned to comprise three diamond drillholes targeting an anomaly down dip of surficial mineralisation that has returned up to 3.6 percent copper, 4.6 grammes per tonnes of gold, and 67 g/t silver in rock chip samples.
The Bakir Tepe Project is located in the Burdur Province of southwestern Turkey and comprises seven tenements, which cover approximately 78 square kilometres within the Lycian Ophiolite Belt and recent work carried out by KEFI Minerals has identified the potential for Cyprus-style copper-gold VHMS deposits.
Also in a JV with Centerra, KEFI Minerals is currently conducting a drilling programme at the Artvin gold project in northeastern Turkey targeting a very large geophysical gold and base metals anomaly identified on surface. Centerra is funding exploration there in order to earn up to 70 percent of Artvin upon expenditure of US$6 million.
KEFI’s projects include seven in Turkey, targeting +1 million gold-ounce equivalent deposits. The company recently engaged in exploration activities in Saudi Arabia, where it established the Gemco Ltd joint venture (KEFI: 40 percent) with local construction and investment group ARTAR, targeting a 1 million oz gold deposit in the Precambrian Shield. KEFI and ARTAR have already lodged ten exploration licenses with the Saudi Arabian authorities. http://www.proactiveinvestors.co.uk/companies/news/11856/kefi-minerals-starts-drilling-at-bakir-tepe-copper-gold-project-in-turkey-11856.html
The exploration company with projects in Turkey and the Kingdom of Saudi Arabia is oparating Bakir Tepe as a joint venture with Centerra Gold Inc (TSX: CG). Centerra has the right to earn a 51 percent interest in the project upon contributing US$750,000 to the JV over two years with a minimum expenditure of US$350,000 in the first year. KEFI Minerals is the manager of the joint venture.
The 900 metre drilling programme is planned to comprise three diamond drillholes targeting an anomaly down dip of surficial mineralisation that has returned up to 3.6 percent copper, 4.6 grammes per tonnes of gold, and 67 g/t silver in rock chip samples.
The Bakir Tepe Project is located in the Burdur Province of southwestern Turkey and comprises seven tenements, which cover approximately 78 square kilometres within the Lycian Ophiolite Belt and recent work carried out by KEFI Minerals has identified the potential for Cyprus-style copper-gold VHMS deposits.
Also in a JV with Centerra, KEFI Minerals is currently conducting a drilling programme at the Artvin gold project in northeastern Turkey targeting a very large geophysical gold and base metals anomaly identified on surface. Centerra is funding exploration there in order to earn up to 70 percent of Artvin upon expenditure of US$6 million.
KEFI’s projects include seven in Turkey, targeting +1 million gold-ounce equivalent deposits. The company recently engaged in exploration activities in Saudi Arabia, where it established the Gemco Ltd joint venture (KEFI: 40 percent) with local construction and investment group ARTAR, targeting a 1 million oz gold deposit in the Precambrian Shield. KEFI and ARTAR have already lodged ten exploration licenses with the Saudi Arabian authorities. http://www.proactiveinvestors.co.uk/companies/news/11856/kefi-minerals-starts-drilling-at-bakir-tepe-copper-gold-project-in-turkey-11856.html
FTSE 100 seen lower after mixed session on Wall Street, Asian stocks climb
Overview: the FTSE 100 is seen slightly lower today following yesterday’s weak session on Wall Street, where the top indexes headed in different directions as investors were digesting mixed economic updates.
The US Commerce Department said that factory orders rose by 1.1% in November against the expected improvement of 0.5%, however, housing data turned out to be weak as the National Association of Retailers reported a 16% decline in its index of pending home sales.
The Dow Jones Industrial Average slid 0.1%, while the broader S&P 500 index recovered closer to the end of trading to finish with a 0.3% gain, while the technology heavy NASDAQ composite was flat.
The UK blue chip index climbed 0.4% yesterday to extend Monday’s gains after the ISM manufacturing index rose by more than expected in the US.
Part-nationalised bank RBS (LSE: RBS) took the lead among the blue chips for the second day in a row, surging 10%. Another banking stock Barclays (LSE: BARC) and investment management firm Man Group (LSE: EMG) also made it to the top three with gains of 6% and 4% respectively. Other notable risers included airline British Airways (LSE: BAY), which rose 3.5%, another bailed out bank Lloyds (LSE: LLOY), which tacked on more than 3% and precious metal miner Fresnillo (LSE: FRES) with a 3% climb.
Software developer Autonomy Corporation (LSE: AU) was the heaviest faller in the index with a 4% loss.
Chocolatier Cadbury (LSE: CBRY) followed, slipping 3.2% after Warren Buffet’s Berkshire Hathaway (NYSE: BRKA), which is a large shareholder in Kraft (NYSE: KFT), said no to the food giant’s planned share issue to facilitate the acquisition of Cadbury. Other notable fallers included pharmaceutical company GlaxoSmithKline (LSE: GSK) and food manufacturer Unilever (LSE: ULVR) with losses of over 2% and medical devices manufacturer Smith & Nephew (LSE: SN), which slipped 3%.
Asian markets mostly rose. Hong Kong’s Hang Seng index climbed 0.2%, Japan’s benchmark Nikkei 225 index gained 0.4%, South Korea’s KOSPI rose 0.7%, while Australia’s S&P/ASX 500 index was flat and China’s Shanghai composite index declined 0.9%.
Commodities
Oil prices were slightly lower following yesterday’s climb as February Brent Crude retreated to US$80.45/barrel and US light, sweet crude declined to US$81.59/barrel.
Precious metals also stood slightly below Tuesday’s levels. Gold was at US$1,120/oz, while silver and platinum held steady at US$17.83/oz and US$1,529/oz respectively.
Base metals inched higher with copper and nickel reaching US$3.43/lb and US$8.49/lb, while zinc improved to US$1.16/lb.
Among the economic data due to be released today are the CIPS Services PMI index in the UK and an ADP National Employment update for December, which is due out in the US later in the day. http://www.proactiveinvestors.co.uk/companies/news/11854/ftse-100-seen-lower-after-mixed-session-on-wall-street-asian-stocks-climb-11854.html
The US Commerce Department said that factory orders rose by 1.1% in November against the expected improvement of 0.5%, however, housing data turned out to be weak as the National Association of Retailers reported a 16% decline in its index of pending home sales.
The Dow Jones Industrial Average slid 0.1%, while the broader S&P 500 index recovered closer to the end of trading to finish with a 0.3% gain, while the technology heavy NASDAQ composite was flat.
The UK blue chip index climbed 0.4% yesterday to extend Monday’s gains after the ISM manufacturing index rose by more than expected in the US.
Part-nationalised bank RBS (LSE: RBS) took the lead among the blue chips for the second day in a row, surging 10%. Another banking stock Barclays (LSE: BARC) and investment management firm Man Group (LSE: EMG) also made it to the top three with gains of 6% and 4% respectively. Other notable risers included airline British Airways (LSE: BAY), which rose 3.5%, another bailed out bank Lloyds (LSE: LLOY), which tacked on more than 3% and precious metal miner Fresnillo (LSE: FRES) with a 3% climb.
Software developer Autonomy Corporation (LSE: AU) was the heaviest faller in the index with a 4% loss.
Chocolatier Cadbury (LSE: CBRY) followed, slipping 3.2% after Warren Buffet’s Berkshire Hathaway (NYSE: BRKA), which is a large shareholder in Kraft (NYSE: KFT), said no to the food giant’s planned share issue to facilitate the acquisition of Cadbury. Other notable fallers included pharmaceutical company GlaxoSmithKline (LSE: GSK) and food manufacturer Unilever (LSE: ULVR) with losses of over 2% and medical devices manufacturer Smith & Nephew (LSE: SN), which slipped 3%.
Asian markets mostly rose. Hong Kong’s Hang Seng index climbed 0.2%, Japan’s benchmark Nikkei 225 index gained 0.4%, South Korea’s KOSPI rose 0.7%, while Australia’s S&P/ASX 500 index was flat and China’s Shanghai composite index declined 0.9%.
Commodities
Oil prices were slightly lower following yesterday’s climb as February Brent Crude retreated to US$80.45/barrel and US light, sweet crude declined to US$81.59/barrel.
Precious metals also stood slightly below Tuesday’s levels. Gold was at US$1,120/oz, while silver and platinum held steady at US$17.83/oz and US$1,529/oz respectively.
Base metals inched higher with copper and nickel reaching US$3.43/lb and US$8.49/lb, while zinc improved to US$1.16/lb.
Among the economic data due to be released today are the CIPS Services PMI index in the UK and an ADP National Employment update for December, which is due out in the US later in the day. http://www.proactiveinvestors.co.uk/companies/news/11854/ftse-100-seen-lower-after-mixed-session-on-wall-street-asian-stocks-climb-11854.html
SeaEnergy says Crown Estate plans to award JV a deal in latest UK wind farm leasing round
SeaEnergy (AIM: SEA) said The Crown Estate has notified of its intention to select the joint venture of its 80% owned subsidiary SeaEnergy Renewables Ltd as one of the zone partners in the third offshore wind farm leasing round in the UK (UK Leasing Round 3).
SERL and partner EDP Renovaveis S.A. (EDPR) set up a JV called Moray Offshore Renwables Limited (MORL) in 2009 with SERL holding 25% and EDPR the remaining 75% to bid for zones in UK Round 3 coordinated by the Crown Estate, the outcome of which is expected to be announced during January 2010.
SeaEnergy relayed a statement issued by EDPR, citing the Portuguese group as saying the Crown Estate notified it of its intention to select MORL as one of the zone partners of the bidding round.
Given the information received from The Crown Estate, EDPR expects MORL to be awarded and to enter into a zone development agreement for Zone 1, which is located in the northeast of Scotland with a target capacity of approximately 1.3 GigaWatts.
Should MORL be selected, it will be awarded an exclusive right to proceed first with the study and development of offshore wind farm projects in a specific zone to obtain the relevant key consents, which would authorise the company to begin construction and operation of the relevant offshore wind farm projects. Should MORL be selected as a zone partner, the construction and operation of the projects is expected to take place between 2015 and 2020.
SeaEnergy said last year that it expected over £130 billion of investment into the offshore wind opportunity through the Scottish and UK Offshore Rounds.
Broker Ambrian Capital published a report on the company following its change of name from Ramco to SeaEnergy in September, saying that the EDPR/SeaEnergy consortium was ideally placed to be allocated one or more of the nine zones in the programme.
After a £7.5 million placing with UK investment group Lanstead Capital LP which became a 22% shareholder in the new entity, SeaEnergy’s model is de-risked in the near term, with funds to meet corporate overheads and development investment until mid-2010, the broker said, adding that the development business model aims to achieve a 10 times return at the pre-construction stage.
The company sold its rights to the Guneshli field to the State Oil Company of Azerbaijan (SOCAR) for a one-off payment of US$4.9 million, intending to use the proceeds for further development of its subsidiary SERL.
SERL has secured a net 456 MegaWatts of offshore wind farm acreage alongside large utility partners and a 25% interest in two joint ventures to develop offshore wind farms with a total capacity of over 1800MW (megawatts) with partners Scottish & Southern Energy PLC unit Airtricity and RWE AG unit npower. The company has conceived, developed and delivered the Beatrice offshore wind farm with 10MW, the world's first deep water wind farm development.http://www.proactiveinvestors.co.uk/companies/news/11873/seaenergy-says-crown-estate-plans-to-award-jv-a-deal-in-latest-uk-wind-farm-leasing-round-11873.html
SERL and partner EDP Renovaveis S.A. (EDPR) set up a JV called Moray Offshore Renwables Limited (MORL) in 2009 with SERL holding 25% and EDPR the remaining 75% to bid for zones in UK Round 3 coordinated by the Crown Estate, the outcome of which is expected to be announced during January 2010.
SeaEnergy relayed a statement issued by EDPR, citing the Portuguese group as saying the Crown Estate notified it of its intention to select MORL as one of the zone partners of the bidding round.
Given the information received from The Crown Estate, EDPR expects MORL to be awarded and to enter into a zone development agreement for Zone 1, which is located in the northeast of Scotland with a target capacity of approximately 1.3 GigaWatts.
Should MORL be selected, it will be awarded an exclusive right to proceed first with the study and development of offshore wind farm projects in a specific zone to obtain the relevant key consents, which would authorise the company to begin construction and operation of the relevant offshore wind farm projects. Should MORL be selected as a zone partner, the construction and operation of the projects is expected to take place between 2015 and 2020.
SeaEnergy said last year that it expected over £130 billion of investment into the offshore wind opportunity through the Scottish and UK Offshore Rounds.
Broker Ambrian Capital published a report on the company following its change of name from Ramco to SeaEnergy in September, saying that the EDPR/SeaEnergy consortium was ideally placed to be allocated one or more of the nine zones in the programme.
After a £7.5 million placing with UK investment group Lanstead Capital LP which became a 22% shareholder in the new entity, SeaEnergy’s model is de-risked in the near term, with funds to meet corporate overheads and development investment until mid-2010, the broker said, adding that the development business model aims to achieve a 10 times return at the pre-construction stage.
The company sold its rights to the Guneshli field to the State Oil Company of Azerbaijan (SOCAR) for a one-off payment of US$4.9 million, intending to use the proceeds for further development of its subsidiary SERL.
SERL has secured a net 456 MegaWatts of offshore wind farm acreage alongside large utility partners and a 25% interest in two joint ventures to develop offshore wind farms with a total capacity of over 1800MW (megawatts) with partners Scottish & Southern Energy PLC unit Airtricity and RWE AG unit npower. The company has conceived, developed and delivered the Beatrice offshore wind farm with 10MW, the world's first deep water wind farm development.http://www.proactiveinvestors.co.uk/companies/news/11873/seaenergy-says-crown-estate-plans-to-award-jv-a-deal-in-latest-uk-wind-farm-leasing-round-11873.html
London Mining – serving the steel industry
It’s been a busy few weeks for London Mining (AIM:LOND) since they listed on AIM at the beginning of November. With US$230 million in the bank, the company chose not to raise capital on listing, and the 37 million shares now in the hands of some thirty London-based investors were placed with them by existing large holders of the stock at a price of £1.92 per share, implying a market capitalisation of £210.7 million.
London Mining’s strategy is that of acquiring and rapidly developing mines to serve the steel industry: mines which are in good locations - both in terms of prospectivity and proximity to customers - with good existing or potential infrastructure and logistics, and which offer good opportunities for modular growth and on-going optimisation. The company has a pipeline of coal assets, but is currently focused on four key iron ore or projects, in four key regions of the world: Sierra Leone, Saudi Arabia, Greenland and China.
Already producing is the Chinese venture. London Mining and their parther Wits Basin Precious Metals formed a joint venture company last spring - China Global Mining Resources (CGMR). Their first purchase was the Xiaonanshan (XNS) iron ore mine and the Sudan processing plant in Anhui and Jiangsu Provinces in a deal which CEO Graeme Hossie believes was the first acquisition of its kind in China. The mine is cash flow positive, and generated US$3.7 million of profits and management fees for London Mining in the September quarter. At the end of the quarter, revenues were running at $71 per tonne of concentrate, versus costs of $40, with few logistical expenses, as the output is largely sold at the mine gate. However, cashflow is not the only benefit of the joint venture, as the company view it as a platform for the establishment of customer relationships not only domestically for the output of CGMR, but also on a wider strategic level which will benefit their other mines around the world.
Output at XNS is currently running at approximately 30,000 tonnes per month of 62% Fe magnetite concentrate, but plans are afoot to raise productivity with the aim of generating increased production as quickly as possible. This is what London Mining’s highly skilled technical team who are advising CGMR are good at – taking an underperforming mine and turning it around speedily. XNS will be no exception. An additional driver for expansion is the enlarged licence recently awarded to CGMR by the local Land and Resources Bureau, which takes in surrounding mines as well as XNS. The intention – which has government support - is to consolidate the region by combining a number of small mines, and to that end CGMR have signed an MOU to purchase two adjacent mines, Sanbanqiao and Guqiao and an associated 0.3 mtpa processing plant. Within 2 years, the consolidated entity should be at least a 1 mtpa operation with a 10-15 year mine life.
CGMR are also seeking other opportunities for expansion in China, and already have a conditional option to acquire Matang, a further local iron resource. The medium term plan is to list the joint venture via an IPO in Hong Kong to raise the necessary funds.
Of the development assets, first off the blocks will be Marampa in Sierra Leone, where an enlarged licence area and a package of fiscal incentives has just been approved by the Cabinet. Marampa was Sierra Leone’s leading iron ore mine for over 40 years prior to closure in 1975, and the intention is to bring it back into full scale production. Phase I - the exploitation of tailings from previous operations - is being fast-tracked into production by early 2011, at the rate of approximately 1.5 tonnes per annum of 66% sinter feed, using a simple and inexpensive process route.
This first phase, currently commencing construction, will cost approximately US$85 in total including working capital requirements, and can be funded internally. Drilling of both the tailings and the primary hard-rock orebody will establish JORC-compliant resources, due imminently for the tailings and by Q2 2010 for the main orebody. Resumption of open-pit mining in Phase II will be financed by cash flow from Phase I, and a BFS is scheduled for 2011, with construction commencing the following year, to raise total production to more than 3 mtpa by 2013.
Logistics at Marampa are simple. Existing tarmac roads have been augmented by a short 17 km section of new road taking Marampa’s output straight to a 60km river barging operation which links to a ship loading facility off Freetown. Forecast prices for the sinter feed, if sold in Europe, are at a premium of $3 per tonne over Itabara fines vs. costs of $32 per tonne of dry concentrate. However, Europe is not the only market in view: the company have held talks with major Chinese metals and ore traders and there is a possibility of co-operation and perhaps joint venture arrangements if these discussions progress.
Further downstream are the iron ore development projects in Greenland at Isua, and at the 50% owned Wadi Sawawin in Saudi Arabia. Recently announced JORC compliant resources at both projects credit Isua with 574Mt at 37% Fe, around one quarter of which is at Indicated status, and at Wadi Sawawin the total resource is 230Mt at 41% Fe, of which two thirds is Indicated, with a further in-house exploration target of 80-120Mt grading 38-42%. Further drilling is planned to incorporate this target during 2010.
Wadi Sawawin, a strategically important project for Saudi Arabia which has undergone decades of development work in the past, is located 52km from the Red Sea port of Duba in Saudi Arabia and is held through Saudi London Iron Limited, the Saudi joint venture company owned 50:50 by London Mining and the Saudi Arabian National Mining Company. The first development phase, on which a bankable feasibility study has just been completed - is the construction of an open pit mine and crushing facility on-mine, with beneficiation and pelletising facilities on the Red Sea, adjacent to deep-water port facilities, power and desalination plants. The intention is to produce - from 2013 - 11.6 million tonnes per annum (mtpa) of concentrate suitable for a 5mtpa DR pelletising operation. Total capex is calculated at $2 billion – although this would reduce to $1.6 billion should the power and desalination plants be built and controlled by a third party. Operating costs are forecast at $47.44 per tonne of pellets, or $58 if power and water is bought in from the said third party, against a long term forecast selling price of $119 per tonne FOB Red Sea. Proximity to its likely markets means reduced shipping costs for customers which will give London Mining a significant competitive advantage.
The company believe that the long-term price for DR pellets is likely to rise to $134 and, according to an in-house study, such an increase would raise the current project NPV from $225 million (assuming ownership of power and desalination plants) to $668 million on the same assumption. If a third party supplies power and water, these figures rise to $282 million and $734 million.
The BFS is based on a mine life of 14 years utilising present resources, but the company believe that after further exploration Wadi Sawawin will comfortably support a 20 year minelife at double the initial output. The in-house study reveals that capex intensity and opex could be significantly reduced by the construction of a 10Mtpa pelletising operation, resulting in a project NPV of $1.127 billion. If pellet prices should rise according to the company’s expectations, this would increase to $1.775 billion.
The location is ideal for the seaborne markets, and has been specifically planned to take advantage of the forecast undersupply of pellets for Direct Reduction Iron plants in the Middle East and North Africa (MENA). One of the leading industry consultants, CRU Strategies, has estimated that demand in the MENA region will reach 43Mt in 2013 – by which time there will be a 17Mt deficit of demand over supply - and 62Mt in 2019.
Accordingly the operation is likely to be scaled up, to double the output from Wadi Sawawin by 2017, and the ultimate aim is to produce up to 20mtpa of DR pellets through further development of additional Wadi Sawawin licences or by potentially taking feed from the Isua project in Greenland as well as from Wadi Sawawin,
Whilst Wadi Sawawin and Isua are both funded up to BFS – due next year for Isua - finance is now being sought to take both projects through to production. The SLI joint venture expects to raise financing to build the Wadi Sawawain project through a combination of funding from local sources (including the government-led PIF and SIDF), commercial debt and the provision of offtake arrangements in exchange for an equity stake.
Taking production from its current level of under 0.4mtpa to the 24mtpa planned for these four key projects by 2018 looks like an ambitious target. But any scepticism should be moderated by the company’s performance in Brazil, where they bought an under-performing, family run iron mine for $65 million, spent $32 million on turning it around inside 12 months, and sold it to Arcelor Mittal for $810 million. This takes vision, determination, and high quality technical skills, all of which London Mining possess in abundance. They’ve done it once, and Graeme Hossie is convinced they can do it again – and again – and again…http://www.proactiveinvestors.co.uk/companies/news/11859/london-mining-serving-the-steel-industry-11859.html
London Mining’s strategy is that of acquiring and rapidly developing mines to serve the steel industry: mines which are in good locations - both in terms of prospectivity and proximity to customers - with good existing or potential infrastructure and logistics, and which offer good opportunities for modular growth and on-going optimisation. The company has a pipeline of coal assets, but is currently focused on four key iron ore or projects, in four key regions of the world: Sierra Leone, Saudi Arabia, Greenland and China.
Already producing is the Chinese venture. London Mining and their parther Wits Basin Precious Metals formed a joint venture company last spring - China Global Mining Resources (CGMR). Their first purchase was the Xiaonanshan (XNS) iron ore mine and the Sudan processing plant in Anhui and Jiangsu Provinces in a deal which CEO Graeme Hossie believes was the first acquisition of its kind in China. The mine is cash flow positive, and generated US$3.7 million of profits and management fees for London Mining in the September quarter. At the end of the quarter, revenues were running at $71 per tonne of concentrate, versus costs of $40, with few logistical expenses, as the output is largely sold at the mine gate. However, cashflow is not the only benefit of the joint venture, as the company view it as a platform for the establishment of customer relationships not only domestically for the output of CGMR, but also on a wider strategic level which will benefit their other mines around the world.
Output at XNS is currently running at approximately 30,000 tonnes per month of 62% Fe magnetite concentrate, but plans are afoot to raise productivity with the aim of generating increased production as quickly as possible. This is what London Mining’s highly skilled technical team who are advising CGMR are good at – taking an underperforming mine and turning it around speedily. XNS will be no exception. An additional driver for expansion is the enlarged licence recently awarded to CGMR by the local Land and Resources Bureau, which takes in surrounding mines as well as XNS. The intention – which has government support - is to consolidate the region by combining a number of small mines, and to that end CGMR have signed an MOU to purchase two adjacent mines, Sanbanqiao and Guqiao and an associated 0.3 mtpa processing plant. Within 2 years, the consolidated entity should be at least a 1 mtpa operation with a 10-15 year mine life.
CGMR are also seeking other opportunities for expansion in China, and already have a conditional option to acquire Matang, a further local iron resource. The medium term plan is to list the joint venture via an IPO in Hong Kong to raise the necessary funds.
Of the development assets, first off the blocks will be Marampa in Sierra Leone, where an enlarged licence area and a package of fiscal incentives has just been approved by the Cabinet. Marampa was Sierra Leone’s leading iron ore mine for over 40 years prior to closure in 1975, and the intention is to bring it back into full scale production. Phase I - the exploitation of tailings from previous operations - is being fast-tracked into production by early 2011, at the rate of approximately 1.5 tonnes per annum of 66% sinter feed, using a simple and inexpensive process route.
This first phase, currently commencing construction, will cost approximately US$85 in total including working capital requirements, and can be funded internally. Drilling of both the tailings and the primary hard-rock orebody will establish JORC-compliant resources, due imminently for the tailings and by Q2 2010 for the main orebody. Resumption of open-pit mining in Phase II will be financed by cash flow from Phase I, and a BFS is scheduled for 2011, with construction commencing the following year, to raise total production to more than 3 mtpa by 2013.
Logistics at Marampa are simple. Existing tarmac roads have been augmented by a short 17 km section of new road taking Marampa’s output straight to a 60km river barging operation which links to a ship loading facility off Freetown. Forecast prices for the sinter feed, if sold in Europe, are at a premium of $3 per tonne over Itabara fines vs. costs of $32 per tonne of dry concentrate. However, Europe is not the only market in view: the company have held talks with major Chinese metals and ore traders and there is a possibility of co-operation and perhaps joint venture arrangements if these discussions progress.
Further downstream are the iron ore development projects in Greenland at Isua, and at the 50% owned Wadi Sawawin in Saudi Arabia. Recently announced JORC compliant resources at both projects credit Isua with 574Mt at 37% Fe, around one quarter of which is at Indicated status, and at Wadi Sawawin the total resource is 230Mt at 41% Fe, of which two thirds is Indicated, with a further in-house exploration target of 80-120Mt grading 38-42%. Further drilling is planned to incorporate this target during 2010.
Wadi Sawawin, a strategically important project for Saudi Arabia which has undergone decades of development work in the past, is located 52km from the Red Sea port of Duba in Saudi Arabia and is held through Saudi London Iron Limited, the Saudi joint venture company owned 50:50 by London Mining and the Saudi Arabian National Mining Company. The first development phase, on which a bankable feasibility study has just been completed - is the construction of an open pit mine and crushing facility on-mine, with beneficiation and pelletising facilities on the Red Sea, adjacent to deep-water port facilities, power and desalination plants. The intention is to produce - from 2013 - 11.6 million tonnes per annum (mtpa) of concentrate suitable for a 5mtpa DR pelletising operation. Total capex is calculated at $2 billion – although this would reduce to $1.6 billion should the power and desalination plants be built and controlled by a third party. Operating costs are forecast at $47.44 per tonne of pellets, or $58 if power and water is bought in from the said third party, against a long term forecast selling price of $119 per tonne FOB Red Sea. Proximity to its likely markets means reduced shipping costs for customers which will give London Mining a significant competitive advantage.
The company believe that the long-term price for DR pellets is likely to rise to $134 and, according to an in-house study, such an increase would raise the current project NPV from $225 million (assuming ownership of power and desalination plants) to $668 million on the same assumption. If a third party supplies power and water, these figures rise to $282 million and $734 million.
The BFS is based on a mine life of 14 years utilising present resources, but the company believe that after further exploration Wadi Sawawin will comfortably support a 20 year minelife at double the initial output. The in-house study reveals that capex intensity and opex could be significantly reduced by the construction of a 10Mtpa pelletising operation, resulting in a project NPV of $1.127 billion. If pellet prices should rise according to the company’s expectations, this would increase to $1.775 billion.
The location is ideal for the seaborne markets, and has been specifically planned to take advantage of the forecast undersupply of pellets for Direct Reduction Iron plants in the Middle East and North Africa (MENA). One of the leading industry consultants, CRU Strategies, has estimated that demand in the MENA region will reach 43Mt in 2013 – by which time there will be a 17Mt deficit of demand over supply - and 62Mt in 2019.
Accordingly the operation is likely to be scaled up, to double the output from Wadi Sawawin by 2017, and the ultimate aim is to produce up to 20mtpa of DR pellets through further development of additional Wadi Sawawin licences or by potentially taking feed from the Isua project in Greenland as well as from Wadi Sawawin,
Whilst Wadi Sawawin and Isua are both funded up to BFS – due next year for Isua - finance is now being sought to take both projects through to production. The SLI joint venture expects to raise financing to build the Wadi Sawawain project through a combination of funding from local sources (including the government-led PIF and SIDF), commercial debt and the provision of offtake arrangements in exchange for an equity stake.
Taking production from its current level of under 0.4mtpa to the 24mtpa planned for these four key projects by 2018 looks like an ambitious target. But any scepticism should be moderated by the company’s performance in Brazil, where they bought an under-performing, family run iron mine for $65 million, spent $32 million on turning it around inside 12 months, and sold it to Arcelor Mittal for $810 million. This takes vision, determination, and high quality technical skills, all of which London Mining possess in abundance. They’ve done it once, and Graeme Hossie is convinced they can do it again – and again – and again…http://www.proactiveinvestors.co.uk/companies/news/11859/london-mining-serving-the-steel-industry-11859.html
SeaEnergy says Crown Estate plans to award JV a deal in latest UK wind farm leasing round
SeaEnergy (AIM: SEA) said The Crown Estate has notified of its intention to select the joint venture of its 80% owned subsidiary SeaEnergy Renewables Ltd as one of the zone partners in the third offshore wind farm leasing round in the UK (UK Leasing Round 3).
SERL and partner EDP Renovaveis S.A. (EDPR) set up a JV called Moray Offshore Renwables Limited (MORL) in 2009 with SERL holding 25% and EDPR the remaining 75% to bid for zones in UK Round 3 coordinated by the Crown Estate, the outcome of which is expected to be announced during January 2010.
SeaEnergy relayed a statement issued by EDPR, citing the Portuguese group as saying the Crown Estate notified it of its intention to select MORL as one of the zone partners of the bidding round.
Given the information received from The Crown Estate, EDPR expects MORL to be awarded and to enter into a zone development agreement for Zone 1, which is located in the northeast of Scotland with a target capacity of approximately 1.3 GigaWatts.
Should MORL be selected, it will be awarded an exclusive right to proceed first with the study and development of offshore wind farm projects in a specific zone to obtain the relevant key consents, which would authorise the company to begin construction and operation of the relevant offshore wind farm projects. Should MORL be selected as a zone partner, the construction and operation of the projects is expected to take place between 2015 and 2020.
SeaEnergy said last year that it expected over £130 billion of investment into the offshore wind opportunity through the Scottish and UK Offshore Rounds.
Broker Ambrian Capital published a report on the company following its change of name from Ramco to SeaEnergy in September, saying that the EDPR/SeaEnergy consortium was ideally placed to be allocated one or more of the nine zones in the programme.
After a £7.5 million placing with UK investment group Lanstead Capital LP which became a 22% shareholder in the new entity, SeaEnergy’s model is de-risked in the near term, with funds to meet corporate overheads and development investment until mid-2010, the broker said, adding that the development business model aims to achieve a 10 times return at the pre-construction stage.
The company sold its rights to the Guneshli field to the State Oil Company of Azerbaijan (SOCAR) for a one-off payment of US$4.9 million, intending to use the proceeds for further development of its subsidiary SERL.
SERL has secured a net 456 MegaWatts of offshore wind farm acreage alongside large utility partners and a 25% interest in two joint ventures to develop offshore wind farms with a total capacity of over 1800MW (megawatts) with partners Scottish & Southern Energy PLC unit Airtricity and RWE AG unit npower. The company has conceived, developed and delivered the Beatrice offshore wind farm with 10MW, the world's first deep water wind farm development.http://www.proactiveinvestors.co.uk/companies/news/11873/seaenergy-says-crown-estate-plans-to-award-jv-a-deal-in-latest-uk-wind-farm-leasing-round-11873.html
SERL and partner EDP Renovaveis S.A. (EDPR) set up a JV called Moray Offshore Renwables Limited (MORL) in 2009 with SERL holding 25% and EDPR the remaining 75% to bid for zones in UK Round 3 coordinated by the Crown Estate, the outcome of which is expected to be announced during January 2010.
SeaEnergy relayed a statement issued by EDPR, citing the Portuguese group as saying the Crown Estate notified it of its intention to select MORL as one of the zone partners of the bidding round.
Given the information received from The Crown Estate, EDPR expects MORL to be awarded and to enter into a zone development agreement for Zone 1, which is located in the northeast of Scotland with a target capacity of approximately 1.3 GigaWatts.
Should MORL be selected, it will be awarded an exclusive right to proceed first with the study and development of offshore wind farm projects in a specific zone to obtain the relevant key consents, which would authorise the company to begin construction and operation of the relevant offshore wind farm projects. Should MORL be selected as a zone partner, the construction and operation of the projects is expected to take place between 2015 and 2020.
SeaEnergy said last year that it expected over £130 billion of investment into the offshore wind opportunity through the Scottish and UK Offshore Rounds.
Broker Ambrian Capital published a report on the company following its change of name from Ramco to SeaEnergy in September, saying that the EDPR/SeaEnergy consortium was ideally placed to be allocated one or more of the nine zones in the programme.
After a £7.5 million placing with UK investment group Lanstead Capital LP which became a 22% shareholder in the new entity, SeaEnergy’s model is de-risked in the near term, with funds to meet corporate overheads and development investment until mid-2010, the broker said, adding that the development business model aims to achieve a 10 times return at the pre-construction stage.
The company sold its rights to the Guneshli field to the State Oil Company of Azerbaijan (SOCAR) for a one-off payment of US$4.9 million, intending to use the proceeds for further development of its subsidiary SERL.
SERL has secured a net 456 MegaWatts of offshore wind farm acreage alongside large utility partners and a 25% interest in two joint ventures to develop offshore wind farms with a total capacity of over 1800MW (megawatts) with partners Scottish & Southern Energy PLC unit Airtricity and RWE AG unit npower. The company has conceived, developed and delivered the Beatrice offshore wind farm with 10MW, the world's first deep water wind farm development.http://www.proactiveinvestors.co.uk/companies/news/11873/seaenergy-says-crown-estate-plans-to-award-jv-a-deal-in-latest-uk-wind-farm-leasing-round-11873.html
Marks and Spencer Q3 like-for-like sales up 0.8% , helped by record Chritmas trading
Retailer Marks and Spencer (LSE: MKS) said today its sales rose for the first time in two years, reporting a 2.6% increase in total group sales for the quarter ending 26 December, while UK sales improved 2.3% and like-for-like sales added 0.8%, with online sales soaring 32%, which the retailer called a successful performance during the important Christmas period.
General merchandise sales improved 1.2%, mostly due to a 4% increase in clothing sales, while food sales added 1.3%.
The group posted its biggest ever Christmas fortnight, with record one day sales of over £50 million on 23 December, while customers bought more than 36 million mince pies, a million bottles of champagne and over 8 million jumpers and cardigans.
The guidance on gross margin, operating costs and capex (capital expenditure) for the current financial year was left unchanged, with the retailer expecting a one-off finance charge of £14 million and offering a cautious outlook.
“We expect the trading conditions over the coming year to remain challenging as a result of continuing economic uncertainty,” said Chairman of Marks and Spencer Stuart Rose.
The increase in like for like sales was just short of market expectations, sending the stock down 5%
General merchandise sales improved 1.2%, mostly due to a 4% increase in clothing sales, while food sales added 1.3%.
The group posted its biggest ever Christmas fortnight, with record one day sales of over £50 million on 23 December, while customers bought more than 36 million mince pies, a million bottles of champagne and over 8 million jumpers and cardigans.
The guidance on gross margin, operating costs and capex (capital expenditure) for the current financial year was left unchanged, with the retailer expecting a one-off finance charge of £14 million and offering a cautious outlook.
“We expect the trading conditions over the coming year to remain challenging as a result of continuing economic uncertainty,” said Chairman of Marks and Spencer Stuart Rose.
The increase in like for like sales was just short of market expectations, sending the stock down 5%
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