Overview: the FTSE 100 pared early gains to return to the opening level on disappointing US data that also sent US stocks down in early trade.
The Chicago PMI (Purchasing Managers Index) update showed a decline from 62.6 to 58.8 in March. This followed ADP’s employment report, which revealed a decline in private employment instead of an expected increase. Finally, the New York ISM index declined 78.1 to 60.6.
Markets got some support from US Commerce Department’s factory orders data, which reported an increase of 0.6% in March to signal a six straight month of gains.
Broadcaster BSkyB (LSE: BSY), which today pledged to challenge regulator Ofcom’s order to cut the price it charges other broadcasters for access to Sky Sports, emerged atop the leaderboard with a gain of nearly 3%. Gold miner Randgold Resources (LSE: RRS) followed with a 2% climb, while bank Lloyds (LSE: LLOY) and food manufacturer Unilever (LSE: ULVR) added 1.5%.
Commercial property company Segro (LSE: SGRO) was at the bottom of the index with a 3.4% loss. London Stock Exchange (LSE: LSE) shed 2%, followed by interdealer broker ICAP (LSE: IAP) and water company United Utilities (LSE: UU), which declined 1.5%. Retailer Kingfisher (LSE: KGF), credit information group Experian (LSE: EXPN) and defence and aerospace systems manufacturer BAE Systems (LSE: BA) shed slightly more than 1%.
US stocks opened lower. The Dow Jones Industrial Average dropped 0.35%, the broader S&P 500 index was down 0.2% and the technology heavy NASDAQ composite slid 0.1%.
Commodities
Oil prices rose as while US crude stockpiles continued growing, the increase reported by the American Petroleum Institute (API) yesterday turned out to be smaller than expected.
According to yesterday’s report from the API, oil stockpiles added just 421,000 barrels last week, while distillates, which include diesel and heating oil, fell by 1 million barrels and gasoline stocks shed 946,000 barrels.
A more closely watched report from Energy Information Administration (EIA) is due out today.
On Monday, OPEC (Organisation of Petroleum Exporting Countries) said that oil prices could stay within the current range of US$70-80/barrel for the next ten years.
Brent Crude for May delivery improved to US$82.32/barrel in London, while US light, sweet crude advanced to US$83.51/barrel on the New York Mercantile Exchange (NYMEX).
Blue chip oil and gas producers didn’t show much movement today. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) posted small losses, while Tullow Oil (LSE: TLW) was flat and other FTSE 100 constituents BG Group (LSE: BG) and Cairn Energy (LSE: CNE) added less than 1%.
Oil and gas engineering firms headed in different directions as while Amec (LSE: AMEC) added nearly 1%, Petrofac (LSE: PFC) posted a small loss.
Most midcaps were in decline. Melrose Resources (LSE: MRS) and Dana Petroleum (LSE: DNX) were at the bottom of the pile, shedding 2% and 1.5% respectively. JKX Oil & Gas (LSE: JKX), Premier Oil (LSE: PMO) and Soco International (LSE: SIA) posted small losses. Heritage Oil (LSE: HOIL) and Salamander Energy (LSE: SMDR) were flat.
Wood Group (LSE: WG) lost nearly 1%, while another services company Wellstream Holdings (LSE: WSM) added 1%.
Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO), Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) and North Sea explorers Xcite Energy (AIM: XEL) led the juniors with gains of 9%, 6.5% and 4.5% respectively.
Gold, silver and platinum climb on weaker US dollar
Gold extended gains as the euro continued its rise against the US dollar on increased optimism about the European debt crisis following last week’s EU agreement on an aid package for debt laden Greece. Last Friday, leaders of euro zone countries agreed to put together a bailout package jointly with the IMF (International Monetary Fund) if the country fails to raise enough money in the market to avoid a default. The agreement provided immediate relief for Europe’s single currency, which has been pressured by concerns over Greece’s fiscal problems for weeks.
The US dollar was further weakened by today’s ADP employment report, which showed a loss of 23,000 jobs in the private sector, while an increase was expected.
Gold is seen as a riskier alternative to the safe-haven US dollar and usually moves inversely to the American currency.
More data is expected today with investors eyeing the Chicago PMI (Purchasing Managers Index), New York ISM index and US factory orders for February.
Spot gold reached US$1,115/oz today. Other precious metals followed with silver and platinum rising to US$17.55/oz and US$1,643/oz respectively.
Major mining stocks were mixed. Gold producer Randgold Resources (LSE: RRS) climbed 1.6% to take the lead in the sector in the FTSE 100, while silver miner Fresnillo (LSE: FRES) followed with a 1% advance. Platinum producer Lonmin (LSE: LMI) made little headway.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) tacked on less than 1%.
Gold miner Petropavlovsk (LSE: POG) was the leading performer among the midcaps with a 1.1% climb. Aquarius Platinum (LSE: AQP) posted a marginal gain, while silver producer Hochschild Mining (LSE: HOC) declined 2.2%.
Russia focused Ovoca Gold (LSE: OVG) led the small caps with a 6.5% gain after releasing an operational update. South Africa and Botswana operating diamond miner Firestone Diamonds (AIM: FDI) slipped 16% after releasing its interim results, while Africa operating gold miner GMA Resources (AIM: GMA) lost 8.7%. Brazil focused gold miner Horizonte Minerals (AIM: HZM) and Uzbekistan focused gold miner Oxus Gold (AIM: OXS) lost more than 5%.
Nickel rallies, copper and zinc gain to lift miners
Base metals were on the rise today. Copper and zinc reached US$3.54/lb and US$1.07/lb, while nickel rallied to US$11.30/lb.
Anglo American (LSE: AAL) and Xstrata (LSE: XTA) led the mining stocks, advancing 1.2%. Antofagasta (LSE: ANTO) and Vedanta Resources (LSE: VED) tacked on less than 1%. Eurasian Natural Resources (LSE: ENRC) and Rio Tinto (LSE: RIO) were flat.
Kazakhmys (LSE: KAZ) headed into the opposite direction, sliding 1.4%, while BHP Billiton (LSE: BLT) posted a small loss.
Russia focused copper and nickel miner Amur Minerals (AIM: AMC) led the juniors, rallying 17%. Philippines operating nickel miner Rusina Mining (ASX: RML; AIM: RMLA) also did well, gaining 6.5%.
Tunisia focused metal miner Maghreb Minerals (AIM: MMS) was in decline, slipping 18%. Zinc mining and recycling specialist ZincOX (AIM: ZOX) shed 6.5% after announcing the requisitioning of a general meeting to sack its current directors, adding that it had received written confirmation from more than 50% of its shareholders that they would vote against the proposals. Cement operator Prosperity Mineral Holdings (AIM: PMHL) lost nearly 6%.
Banks, insurance, private equity
Part-nationalised bank Lloyds (LSE: LLOY) and Standard Chartered (LSE: STAN) led the banking sector with gains of 1.3%. Royal Bank of Scotland (LSE: RBS) added nearly 1%, while Barclays (LSE: BARC) posted a small gain. HSBC (LSE: HSBA) went against the tide, shedding less than 1%.
Standard Life (LSE: SL) was at the bottom of the insurance sector with a 1.1% decline. Aviva (LSE: AV), Legal & General (LSE: LGEN) and RSA Insurance Group (LSE: RSA) posted small losses. Admiral Group (LSE: ADM) and Old Mutual (LSE: OML) were flat. Prudential (LSE: PRU) was in the lead with a small gain.
Private equity group 3i (LSE: III) was flat.
Large and Mid Cap News
London and New York pharmaceutical giant GlaxoSmithKline (NYSE:GSK, LSE:GSK) has been continually seeking new partnerships while also regularly restricting its own operations in an attempt to maximise its drug development pipeline while keeping research and development costs in check. This morning Glaxo announced a new strategic alliance with US listed Isis Pharmaceuticals (NASDAQ:ISIS) to jointly develop new therapies using Isis’ antisense drug delivery platform. The alliance will focus on potential candidates for rare and serious disease, including conditions that cause blindness and infectious diseases.
Small Cap News
Engyco PLC intends to become the first listed European solar power utility company, and plans to raise up to €1bn via a listing on the London Stock Exchange. The company intends to acquire producing solar assets in Spain, where it already has agreements from vendors for €640 million worth of solar assets with a capacity of 86MW.
European Nickel (AIM, PLUS: ENK) is certainly juggling quite a few nickel balls at the moment. The company is progressing towards a merger with fellow nickel laterite specialist, Rusina Mining, and this morning confirmed that it had extended financing discussions for its key Çaldağ project which contains a JORC proven reserve of 33.2Mt at 1.13% Ni, for a nickel content of 375,000 tonnes.
Norseman Gold PLC (AIM, ASX: NGL) said it was notified that non-executive director David Steinepreis last week bought 24,100 shares in the company on the market for a total of A$16,972, and he now holds 4,337,957 shares in Norseman. This follows Steinepreis’s purchase of 56,750 shares, also last week , which the group announced two days ago.
The board of ZincOx Resources (AIM: ZOX) has found reassurance among its major shareholders following a recent general meeting requisition to oust six directors by two minor shareholders with a combined 5% stake in the company. Today, Zincox said that it has received written confirmations representing more than 50% of the company’s issued shares.
Oxus Gold PLC (AIM: OXS) said chief operating officer John Donald will be retiring from the Oxus board with effect from 31 March 2010. He has agreed to consult for Oxus until 31 December 2010. The COO position will remain vacant pending completion of the CITIC Consortium funding it announced on 7 January 2010.
In the six months ended 31 December 2009, North River Resources (AIM: NRRP) has strengthened its position as emerging southern Africa focused resource company. Most notably with the acquisition of a highly prospective portfolio of Namibian base metal and gold assets from Kalahari Minerals (AIM: KAH) - which subsequently became the company’s largest shareholder with a 44.9% stake in North River.
For the six-months ended 31 December 2009, Regency Mines (AIM: RGM) reported a pretax profit of £388,164 compared to a £1.4m loss in the comparative period in 2008, and said it is loolking ahead with confidence.
Pan African Resources (AIM: PAF, JSE: PAN) has agreed to acquire a 25% stake in RK1 Consortium, which operates a PGM (platinum group metals) concentrator plant from Ivanhoe Nickel & Platinum Limited for ZAR 53 million, or £4.8 million.
In its full-year results report, the IPSA Group (AIM: IPSA) said that whilst it has been a difficult year, the recent loan-note issue provides working capital to enable it to progress the coal-fired developments in the Eastern Cape, in addition to securing the sale of its surplus turbines and the power purchase agreement (PPA) for the plant in Newcastle, South Africa.
Ovoca Gold (AIM: OVG) has contracted a drilling company to start the planned diamond drill programme at the Rassoshinskaya property in April, and announced the appointments of a new chief financial officer, a non-exceutive director and a corporate secretary.
Synchronica (AIM: SYNC) has agreed the acquisition of IMPS instant messaging business Colibria AS in a structured deal totalling €750,000 in cash and approximately 128 million shares. Additionally, the company announced that it will conduct a placing and an equity-swap placing, raising up to £4.8 million.
Fusion IP (AIM: FIP), the university commercialisation company which turns university research into business, reported its first interim profit of £0.9 million as revenues were up from £0.1 million to £0.8 million after the company secured its first major IP licensing deal from the agreement with Sheffild University during the first half.
In its results statement for the six months ended 31 December 2009, Red Rock Resources (AIM: RRR) said the period saw a recovery from the depressed conditions early in 2009, and the gradual maturing of the company's strategies. The company reported an interim pretax profit of £3.2 million compared with a loss of £1.9 in the comparative period of 2008.
In its results statement for the six months ended 31 December 2009, Red Rock Resources (AIM: RRR) said the period saw a recovery from the depressed conditions early in 2009, and the gradual maturing of the company's strategies. The company reported an interim pretax profit of £3.2 million compared with a loss of £1.9 in the comparative period of 2008.
In its interim report for the six-months to 31 December 2009, Firestone Diamonds (AIM: FDI) said that the period saw good progress in the development of its project portfolio in Botswana. The company’s activities were primarily focused on the BK11 kimberlite in the Orapa area, from which producttion is expected to start on schedule in Q2 2010.
Caledon Resources (AIM: CND, ASX: CCD) released its annual financial report today, reporting lower revenues that resulted in a full year loss due to lower prices and unfavourable currency movements, but projecting a rebound in 2010 after growing production and cutting sales costs during 2009.
Solomon Gold (AIM: SOLG) said one of the company’s non-executive directors, John Bovard, has taken a stake in the company. The director bought 300,000 Solomon Gold shares at a price of 7.5p per share, on 30th March 2010.
Junior gold outfit Kryso Resources (AIM:KYS) has had a bit of a rethink about the 2.8 million ounce Pakrut Gold Project in Tajikistan. Pakrut is approximately 112 km north-east of the capital city Dushanbe, and sits in the prolific Tien Shan gold belt which runs through Uzbekistan, Tajikistan, Kyrgyzstan and China.
Amur Minerals (AIM: AMC) said it has now completed the transfer of fuel and materials via the ice road to its Kun-Manie nickel deposit to progress the 2010 field season at the Russian project.
Recent updates from London Mining (AIM: LOND) reflect a company in transition, as the company continues to delineate big iron ore resources at its key projects in Sierra Leone, Saudi Arabia and Greenland.
Human tissue and human tissue based research services supplier Asterand (AIM: ATD) said chief executive Martyn Coombs has increased his shareholding in the company, buying 60,000 shares at 15.9p per share. Coombs now holds approximately 400,000 shares, representing 0.35% of the company’s issued share capital.
http://www.proactiveinvestors.co.uk/companies/news/15121/ftse-100-pares-gains-on-disappointing-chicago-pmi-new-york-ism-and-adp-employment-updates-15121.html
Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
Thursday, 1 April 2010
Asterand CEO Coombs buys 60,000 more shares in company
Human tissue and human tissue based research services supplier Asterand (AIM: ATD) said chief executive Martyn Coombs has increased his shareholding in the company, buying 60,000 shares at 15.9p per share. Coombs now holds approximately 400,000 shares, representing 0.35% of the company’s issued share capital.
Yesterday, the company reported its results for the full-year ended December 31 2009. For the coming year, Asterand said its outlook was positive, expecting its 2009 investments to set up a foundation for the company to “lead in the marketplace in 2010 and beyond".
With its headline financials inline with analyst expectations, Asterand’s results highlighted a 20% increase in base business revenue to £9.5 million, improved gross margins from 56% to 57% and made significant investments in the supply network, having signed agreements with East-West Bio of Paris and an Asian collaborator to add 22 new sites in Europe and Asia.
Revenues dipped from £15.2 million to £12 million, while last year’s profit of £3.9 million turned into a £1.1 million loss. Cash resources as at December 31 2009 were at £4.2 million, down from £6.9 million a year earlier.
Also this month, Asterand’s BioSeek subsidiary signed a multi-year drug discovery collaboration agreement with Japanese research and development focused specialty pharmaceutical company Ono Pharmaceutical Co Ltd.
BioSeek’s human-cell based assay systems BioMAP are designed to replicate the intricate cell and pathway interactions that are present in inflammatory, autoimmune and cardiovascular diseases. Asterand said that BioMAP provides pharmaceutical companies with actionable data to guide their lead selection and optimisation programmes.
http://www.proactiveinvestors.co.uk/companies/news/15119/asterand-ceo-coombs-buys-60000-more-shares-in-company--15119.html
Yesterday, the company reported its results for the full-year ended December 31 2009. For the coming year, Asterand said its outlook was positive, expecting its 2009 investments to set up a foundation for the company to “lead in the marketplace in 2010 and beyond".
With its headline financials inline with analyst expectations, Asterand’s results highlighted a 20% increase in base business revenue to £9.5 million, improved gross margins from 56% to 57% and made significant investments in the supply network, having signed agreements with East-West Bio of Paris and an Asian collaborator to add 22 new sites in Europe and Asia.
Revenues dipped from £15.2 million to £12 million, while last year’s profit of £3.9 million turned into a £1.1 million loss. Cash resources as at December 31 2009 were at £4.2 million, down from £6.9 million a year earlier.
Also this month, Asterand’s BioSeek subsidiary signed a multi-year drug discovery collaboration agreement with Japanese research and development focused specialty pharmaceutical company Ono Pharmaceutical Co Ltd.
BioSeek’s human-cell based assay systems BioMAP are designed to replicate the intricate cell and pathway interactions that are present in inflammatory, autoimmune and cardiovascular diseases. Asterand said that BioMAP provides pharmaceutical companies with actionable data to guide their lead selection and optimisation programmes.
http://www.proactiveinvestors.co.uk/companies/news/15119/asterand-ceo-coombs-buys-60000-more-shares-in-company--15119.html
Crude reaches $83 on API inventories report, EIA data eyed
Oil prices rose as while US crude stockpiles continued growing, the increase reported by the American Petroleum Institute (API) yesterday turned out to be smaller than expected.
According to yesterday’s report from the API, oil stockpiles added just 421,000 barrels last week, while distillates, which include diesel and heating oil, fell by 1 million barrels and gasoline stocks shed 946,000 barrels.
A more closely watched report from Energy Information Administration (EIA) is due out today.
Crude prices also benefitted from a weaker US dollar, which declined against the euro on a successful bond issue by Greece to raise another €5 billion, and terrorist attacks that hit major oil and gas producer Russia.
On Monday, OPEC (Organisation of Petroleum Exporting Countries) said that oil prices could stay within the current range of US$70-80/barrel for the next ten years.
Brent Crude for May delivery improved to US$82.32/barrel in London, while US light, sweet crude advanced to US$83.51/barrel on the New York Mercantile Exchange (NYMEX).
Blue chip oil and gas producers didn’t show much movement today. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) posted small losses, while Tullow Oil (LSE: TLW) was flat and other FTSE 100 constituents BG Group (LSE: BG) and Cairn Energy (LSE: CNE) added less than 1%.
Oil and gas engineering firms headed in different directions as while Amec (LSE: AMEC) added nearly 1%, Petrofac (LSE: PFC) posted a small loss.
Most midcaps were in decline. Melrose Resources (LSE: MRS) and Dana Petroleum (LSE: DNX) were at the bottom of the pile, shedding 2% and 1.5% respectively. JKX Oil & Gas (LSE: JKX), Premier Oil (LSE: PMO) and Soco International (LSE: SIA) posted small losses. Heritage Oil (LSE: HOIL) and Salamander Energy (LSE: SMDR) were flat.
Wood Group (LSE: WG) lost nearly 1%, while another services company Wellstream Holdings (LSE: WSM) added 1%.
Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO), Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) and North Sea explorers Xcite Energy (AIM: XEL) led the juniors with gains of 9%, 6.5% and 4.5% respectively.
http://www.proactiveinvestors.co.uk/companies/news/15117/crude-reaches-83-on-api-inventories-report-eia-data-eyed-15117.html
According to yesterday’s report from the API, oil stockpiles added just 421,000 barrels last week, while distillates, which include diesel and heating oil, fell by 1 million barrels and gasoline stocks shed 946,000 barrels.
A more closely watched report from Energy Information Administration (EIA) is due out today.
Crude prices also benefitted from a weaker US dollar, which declined against the euro on a successful bond issue by Greece to raise another €5 billion, and terrorist attacks that hit major oil and gas producer Russia.
On Monday, OPEC (Organisation of Petroleum Exporting Countries) said that oil prices could stay within the current range of US$70-80/barrel for the next ten years.
Brent Crude for May delivery improved to US$82.32/barrel in London, while US light, sweet crude advanced to US$83.51/barrel on the New York Mercantile Exchange (NYMEX).
Blue chip oil and gas producers didn’t show much movement today. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) posted small losses, while Tullow Oil (LSE: TLW) was flat and other FTSE 100 constituents BG Group (LSE: BG) and Cairn Energy (LSE: CNE) added less than 1%.
Oil and gas engineering firms headed in different directions as while Amec (LSE: AMEC) added nearly 1%, Petrofac (LSE: PFC) posted a small loss.
Most midcaps were in decline. Melrose Resources (LSE: MRS) and Dana Petroleum (LSE: DNX) were at the bottom of the pile, shedding 2% and 1.5% respectively. JKX Oil & Gas (LSE: JKX), Premier Oil (LSE: PMO) and Soco International (LSE: SIA) posted small losses. Heritage Oil (LSE: HOIL) and Salamander Energy (LSE: SMDR) were flat.
Wood Group (LSE: WG) lost nearly 1%, while another services company Wellstream Holdings (LSE: WSM) added 1%.
Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO), Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) and North Sea explorers Xcite Energy (AIM: XEL) led the juniors with gains of 9%, 6.5% and 4.5% respectively.
http://www.proactiveinvestors.co.uk/companies/news/15117/crude-reaches-83-on-api-inventories-report-eia-data-eyed-15117.html
Engyco plans to become first listed European solar utility with €1bn IPO in London
Engyco PLC intends to become the first listed European solar power utility company, and plans to raise up to €1bn via a listing on the London Stock Exchange. The company intends to acquire producing solar assets in Spain, where it already has agreements from vendors for €640 million worth of solar assets with a capacity of 86MW.
“The opportunity that Engyco has identified is compelling and the team which has been assembled to pursue it could not be stronger”, Engyco chairman John Roberts commented. “The assets which we intend to manage enjoy both favourable operating conditions and a highly attractive pricing regime.
According to Engyco, Spain’s attractive government-backed feed-in tariff regime during in 2007/08, and the abundance of available financing at that time, led to a very large quantity of solar projects being built, often by owners for whom solar power assets were a non-core activity. Accordingly, the company noted that in 2008, Spain accounted for half of the world’s solar new builds and approximately 20% of global aggregate capacity.
“Since the end of 2008, the cost of capital has risen sharply and Spain has experienced a collapse in its real estate, construction and property sectors. As a result, many owners of solar assets are willing to sell these non-core assets, which provides a plentiful supply of operating solar assets”, Engyco stated.
Through the listing, Engyco intends to accelerate its acquisition strategy. Following the acquisitions, the company plans to utilize its technical expertise and management team to make operational and financing improvements to the project portfolio and in turn improve the productivity and economic returns of the assets.
The company’s board boasts a wealth of experience, featuring a number of utility-industry heavyweights, including former United Utilities PLC (LSE:UU)chief executive John Roberts as Engyco’s non-executive chairman. He is currently a non-executive director of International Power PLC (LSE: IPR)and of Blackrock New Energy Investment Trust. The former chairman of Red Eléctrica de España, Pedro Mielgo, is a non-executive director. Engyco's CEO-designate Thomas Krupke is leaving his position as the CEO of SOLON SE, a German maker of solar modules and photovoltaic power plants. SOLON’s co-founder Alexander Voigt is Engyco’s executive vice chairman.
The management team also includes Mark Kirkland, former FD of Raven Mount Group PLC, as the company’s chief financial officer. Northumbrian Water Group PLC's non-executive director Martin Nègre, former US ambassodor to Brazil and Costa Rica John Danilovich, global stretegist Charles Gave who launched research firm Cecogest and Q-Cells co-founder Dr. Thomas van Aubel are non-executive directors of Engyco.
“I am confident that we will be successful in achieving our objectives, including that of becoming the first UK listed solar utility”, CEO Roberts added.
http://www.proactiveinvestors.co.uk/companies/news/15116/engyco-plans-to-become-first-listed-european-solar-utility-with-1bn-ipo-in-london-15116.html
“The opportunity that Engyco has identified is compelling and the team which has been assembled to pursue it could not be stronger”, Engyco chairman John Roberts commented. “The assets which we intend to manage enjoy both favourable operating conditions and a highly attractive pricing regime.
According to Engyco, Spain’s attractive government-backed feed-in tariff regime during in 2007/08, and the abundance of available financing at that time, led to a very large quantity of solar projects being built, often by owners for whom solar power assets were a non-core activity. Accordingly, the company noted that in 2008, Spain accounted for half of the world’s solar new builds and approximately 20% of global aggregate capacity.
“Since the end of 2008, the cost of capital has risen sharply and Spain has experienced a collapse in its real estate, construction and property sectors. As a result, many owners of solar assets are willing to sell these non-core assets, which provides a plentiful supply of operating solar assets”, Engyco stated.
Through the listing, Engyco intends to accelerate its acquisition strategy. Following the acquisitions, the company plans to utilize its technical expertise and management team to make operational and financing improvements to the project portfolio and in turn improve the productivity and economic returns of the assets.
The company’s board boasts a wealth of experience, featuring a number of utility-industry heavyweights, including former United Utilities PLC (LSE:UU)chief executive John Roberts as Engyco’s non-executive chairman. He is currently a non-executive director of International Power PLC (LSE: IPR)and of Blackrock New Energy Investment Trust. The former chairman of Red Eléctrica de España, Pedro Mielgo, is a non-executive director. Engyco's CEO-designate Thomas Krupke is leaving his position as the CEO of SOLON SE, a German maker of solar modules and photovoltaic power plants. SOLON’s co-founder Alexander Voigt is Engyco’s executive vice chairman.
The management team also includes Mark Kirkland, former FD of Raven Mount Group PLC, as the company’s chief financial officer. Northumbrian Water Group PLC's non-executive director Martin Nègre, former US ambassodor to Brazil and Costa Rica John Danilovich, global stretegist Charles Gave who launched research firm Cecogest and Q-Cells co-founder Dr. Thomas van Aubel are non-executive directors of Engyco.
“I am confident that we will be successful in achieving our objectives, including that of becoming the first UK listed solar utility”, CEO Roberts added.
http://www.proactiveinvestors.co.uk/companies/news/15116/engyco-plans-to-become-first-listed-european-solar-utility-with-1bn-ipo-in-london-15116.html
Gold extends gains as euro keeps rising on Greek bailout agreement
Gold extended gains as the euro continued its rise against the US dollar on increased optimism about the European debt crisis following last week’s EU agreement on an aid package for debt laden Greece. Last Friday, leaders of euro zone countries agreed to put together a bailout package jointly with the IMF (International Monetary Fund) if the country fails to raise enough money in the market to avoid a default. The agreement provided immediate relief for Europe’s single currency, which has been pressured by concerns over Greece’s fiscal problems for weeks.
The US dollar was further weakened by today’s ADP employment report, which showed a loss of 23,000 jobs in the private sector, while an increase was expected.
Gold is seen as a riskier alternative to the safe-haven US dollar and usually moves inversely to the American currency.
More data is expected today with investors eyeing the Chicago PMI (Purchasing Managers Index), New York ISM index and US factory orders for February.
Spot gold reached US$1,115/oz today. Other precious metals followed with silver and platinum rising to US$17.55/oz and US$1,643/oz respectively.
Major mining stocks were mixed. Gold producer Randgold Resources (LSE: RRS) climbed 1.6% to take the lead in the sector in the FTSE 100, while silver miner Fresnillo (LSE: FRES) followed with a 1% advance. Platinum producer Lonmin (LSE: LMI) made little headway.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) tacked on less than 1%.
Gold miner Petropavlovsk (LSE: POG) was the leading performer among the midcaps with a 1.1% climb. Aquarius Platinum (LSE: AQP) posted a marginal gain, while silver producer Hochschild Mining (LSE: HOC) declined 2.2%.
Russia focused Ovoca Gold (LSE: OVG) led the small caps with a 6.5% gain after releasing an operational update. South Africa and Botswana operating diamond miner Firestone Diamonds (AIM: FDI) slipped 16% after releasing its interim results, while Africa operating gold miner GMA Resources (AIM: GMA) lost 8.7%. Brazil focused gold miner Horizonte Minerals (AIM: HZM) and Uzbekistan focused gold miner Oxus Gold (AIM: OXS) lost more than 5%.
http://www.proactiveinvestors.co.uk/companies/news/15114/gold-extends-gains-as-euro-keeps-rising-on-greek-bailout-agreement-15114.html
The US dollar was further weakened by today’s ADP employment report, which showed a loss of 23,000 jobs in the private sector, while an increase was expected.
Gold is seen as a riskier alternative to the safe-haven US dollar and usually moves inversely to the American currency.
More data is expected today with investors eyeing the Chicago PMI (Purchasing Managers Index), New York ISM index and US factory orders for February.
Spot gold reached US$1,115/oz today. Other precious metals followed with silver and platinum rising to US$17.55/oz and US$1,643/oz respectively.
Major mining stocks were mixed. Gold producer Randgold Resources (LSE: RRS) climbed 1.6% to take the lead in the sector in the FTSE 100, while silver miner Fresnillo (LSE: FRES) followed with a 1% advance. Platinum producer Lonmin (LSE: LMI) made little headway.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) tacked on less than 1%.
Gold miner Petropavlovsk (LSE: POG) was the leading performer among the midcaps with a 1.1% climb. Aquarius Platinum (LSE: AQP) posted a marginal gain, while silver producer Hochschild Mining (LSE: HOC) declined 2.2%.
Russia focused Ovoca Gold (LSE: OVG) led the small caps with a 6.5% gain after releasing an operational update. South Africa and Botswana operating diamond miner Firestone Diamonds (AIM: FDI) slipped 16% after releasing its interim results, while Africa operating gold miner GMA Resources (AIM: GMA) lost 8.7%. Brazil focused gold miner Horizonte Minerals (AIM: HZM) and Uzbekistan focused gold miner Oxus Gold (AIM: OXS) lost more than 5%.
http://www.proactiveinvestors.co.uk/companies/news/15114/gold-extends-gains-as-euro-keeps-rising-on-greek-bailout-agreement-15114.html
Kryso Resources looks deeper at 2.8 million ounce Pakrut Gold Project
Junior gold outfit Kryso Resources (AIM:KYS) has had a bit of a rethink about the 2.8 million ounce Pakrut Gold Project in Tajikistan. Pakrut is approximately 112 km north-east of the capital city Dushanbe, and sits in the prolific Tien Shan gold belt which runs through Uzbekistan, Tajikistan, Kyrgyzstan and China.
The Bankable Feasibility Study (BFS) - which is the cornerstone study required before project finance to develop a mine can be secured – was initially looking at a mine development that would see both an open pit and underground mine operating in parallel.
However this afternoon Kryso noted that recent high grade drill results from Ore Zone 1 had shown that the mineralization widens at depth, sparking a rethink from the company and the Beijing General Research Institute of Mining & Metallurgy (BGRIMM) who are consulting on the study.
Kryso and the BGRIMM now believe that a more robust mine development plan will be forthcoming if Pakrut is developed solely as an underground gold mine to exploit the widening underground gold structure. Previous drill results included 123.7 meters at 6.1 grams per tonne gold, 42 meters at 11.2 grams per tonne gold and 50 meters at 5.7 grams per tonne gold. Ore Zone 1 is the largest ore zone identified at Pakrut to date and remains open at depth.
Originally, the BFS was scheduled for completion by the end of 2009, but was pushed back to ‘early 2010’ after a delay in calculating the most recent resource statement (released November 2009). Shares in Kryso slipped this afternoon after the company confirmed the revision in the BFS study would push the completion date back to the second quarter.
“It is anticipated that an underground approach would deliver superior economics relative to a combination of open pit and underground mining and would also enable the early exploitation of higher grade ore found at depth, with lower grade near surface ore blended in as required to produce optimal feed for the mill,” Kryso stated.
Kryso went on to remind investors that the remainder of the BFS was ‘approximately 80% complete’. BGRIMM are currently finalising capital and operating cost estimates.
`The reorientation of the Pakrut BFS around an underground mine is an essential step towards getting the best out of the Pakrut gold project and the delivery of an optimal mining case is a key precursor to securing financing for the project’, Trevor Davenport, Non-Executive Chairman and interim Managing Director of Kryso added.
http://www.proactiveinvestors.co.uk/companies/news/15113/kryso-resources-looks-deeper-at-28-million-ounce-pakrut-gold-project-15113.html
The Bankable Feasibility Study (BFS) - which is the cornerstone study required before project finance to develop a mine can be secured – was initially looking at a mine development that would see both an open pit and underground mine operating in parallel.
However this afternoon Kryso noted that recent high grade drill results from Ore Zone 1 had shown that the mineralization widens at depth, sparking a rethink from the company and the Beijing General Research Institute of Mining & Metallurgy (BGRIMM) who are consulting on the study.
Kryso and the BGRIMM now believe that a more robust mine development plan will be forthcoming if Pakrut is developed solely as an underground gold mine to exploit the widening underground gold structure. Previous drill results included 123.7 meters at 6.1 grams per tonne gold, 42 meters at 11.2 grams per tonne gold and 50 meters at 5.7 grams per tonne gold. Ore Zone 1 is the largest ore zone identified at Pakrut to date and remains open at depth.
Originally, the BFS was scheduled for completion by the end of 2009, but was pushed back to ‘early 2010’ after a delay in calculating the most recent resource statement (released November 2009). Shares in Kryso slipped this afternoon after the company confirmed the revision in the BFS study would push the completion date back to the second quarter.
“It is anticipated that an underground approach would deliver superior economics relative to a combination of open pit and underground mining and would also enable the early exploitation of higher grade ore found at depth, with lower grade near surface ore blended in as required to produce optimal feed for the mill,” Kryso stated.
Kryso went on to remind investors that the remainder of the BFS was ‘approximately 80% complete’. BGRIMM are currently finalising capital and operating cost estimates.
`The reorientation of the Pakrut BFS around an underground mine is an essential step towards getting the best out of the Pakrut gold project and the delivery of an optimal mining case is a key precursor to securing financing for the project’, Trevor Davenport, Non-Executive Chairman and interim Managing Director of Kryso added.
http://www.proactiveinvestors.co.uk/companies/news/15113/kryso-resources-looks-deeper-at-28-million-ounce-pakrut-gold-project-15113.html
Caledon Resources grows FY production and cuts costs, optimistic about 2010 recovery
Caledon Resources (AIM: CND, ASX: CCD) released its annual financial report today, reporting lower revenues that resulted in a full year loss due to lower prices and unfavourable currency movements, but projecting a rebound in 2010 after growing production and cutting sales costs during 2009.
Caledon operates the Cook underground coking coal mine and is working towards a feasibility study of the nearby Minyango coking coal deposit in Queensland.
The company called the year “challenging” as the annual contract price of Cook coking coal more than halved from US$280/t (tonne) to US$107/t, while the Australian dollar gained 40% against the US dollar during the year. These factors resulted in a loss of A$11.4 million incurred by the group compared to an after tax profit of A$8.2 million in 2008.
Caledon has mined 604,000 tonnes of coal in 2009, up from 548,000t in 2008. Coking coal production amounted to 406,900t against the previous year’s 378,000t, while coking coal sales increased from 397,000t of to 403,000t. The company has produced and sold 79,000t and 76,000t of thermal coal during the year, compared to 66,000t produced and sold in 2008.
The operational focus during the year was on the completion of primary and secondary extraction of the northernmost panels, where mining is now complete and the area is currently being progressively sealed up. By April 2010 the mine is expected to have developed and have access to four production panels, which will facilitate greater flexibility in moving productive units if necessary, and be in a position to start lower cost secondary extraction from the first South Argo production panel.
During the year, the Cook’s JORC compliant resource estimate was increased by 230 Mt to 406 Mt and the Minyango Resource by 50 Mt to 342 Mt. After putting its plans to increase output on hold, the company intends to increase production from the 485,000t achieved in 2008 to 700,000t in 2010.
Capex (capital expenditure) at the Cook mine was brought down from A$11 million to A$2.6 million. Despite higher production, cost of sales declined from US$82.5 million to US$71.8 million.
The company said that the outlook for 2010 has improved dramatically with reports that BHP (LON:BLT, ASX:BHP) has agreed prices for its benchmark coking coals with a number of its Asian customers at US$200/t for the April to June period.
Caledon’s report stated that the overall pricing trend is now clear and supports the decision to increase saleable production at Cook to a forecast 700,000t, adding that the company was positioned to capitalize on the recovery in the markets that it said were evident in 2010. The re-entry into the market of traditional consumers coupled with China’s development into a new major importer of coking coal.
http://www.proactiveinvestors.co.uk/companies/news/15111/caledon-resources-grows-fy-production-and-cuts-costs-optimistic-about-2010-recovery-15111.html
Caledon operates the Cook underground coking coal mine and is working towards a feasibility study of the nearby Minyango coking coal deposit in Queensland.
The company called the year “challenging” as the annual contract price of Cook coking coal more than halved from US$280/t (tonne) to US$107/t, while the Australian dollar gained 40% against the US dollar during the year. These factors resulted in a loss of A$11.4 million incurred by the group compared to an after tax profit of A$8.2 million in 2008.
Caledon has mined 604,000 tonnes of coal in 2009, up from 548,000t in 2008. Coking coal production amounted to 406,900t against the previous year’s 378,000t, while coking coal sales increased from 397,000t of to 403,000t. The company has produced and sold 79,000t and 76,000t of thermal coal during the year, compared to 66,000t produced and sold in 2008.
The operational focus during the year was on the completion of primary and secondary extraction of the northernmost panels, where mining is now complete and the area is currently being progressively sealed up. By April 2010 the mine is expected to have developed and have access to four production panels, which will facilitate greater flexibility in moving productive units if necessary, and be in a position to start lower cost secondary extraction from the first South Argo production panel.
During the year, the Cook’s JORC compliant resource estimate was increased by 230 Mt to 406 Mt and the Minyango Resource by 50 Mt to 342 Mt. After putting its plans to increase output on hold, the company intends to increase production from the 485,000t achieved in 2008 to 700,000t in 2010.
Capex (capital expenditure) at the Cook mine was brought down from A$11 million to A$2.6 million. Despite higher production, cost of sales declined from US$82.5 million to US$71.8 million.
The company said that the outlook for 2010 has improved dramatically with reports that BHP (LON:BLT, ASX:BHP) has agreed prices for its benchmark coking coals with a number of its Asian customers at US$200/t for the April to June period.
Caledon’s report stated that the overall pricing trend is now clear and supports the decision to increase saleable production at Cook to a forecast 700,000t, adding that the company was positioned to capitalize on the recovery in the markets that it said were evident in 2010. The re-entry into the market of traditional consumers coupled with China’s development into a new major importer of coking coal.
http://www.proactiveinvestors.co.uk/companies/news/15111/caledon-resources-grows-fy-production-and-cuts-costs-optimistic-about-2010-recovery-15111.html
Firestone Diamonds set to begin BK11 production in Q2 2010
In its interim report for the six-months to 31 December 2009, Firestone Diamonds (AIM: FDI) said that the period saw good progress in the development of its project portfolio in Botswana. The company’s activities were primarily focused on the BK11 kimberlite in the Orapa area, from which producttion is expected to start on schedule in Q2 2010.
“We are only months away from commencing production on schedule and are still on target to reach full production capacity by the end of 2010 - To put a new mine into operation at BK11 just over 3 years from being granted a prospecting licence, and at a much lower cost than comparable operations elsewhere, will have been a significant achievement by any measure”, Firestone chairman James F Kenny stated.
Whilst remaining on schedule, Firestone noted that it required additional capital of approximately £2m, and discussions are at an advanced stage with the company's bankers in Botswana. Early in the period, in July 2009, Firestone raised £7.2m from a share placing in order to finance the development of the projects in Botswana, and to provide general working capital.
Towards the end of the period, in December, Firestone announced that the final phase of the resource evaluation work at BK11 had been completed with positive results, and consequently the company decided to begin the BK11 mine development.
A mining lease application was submitted for BK11 in Q1 2010, and the lease is expected to be granted shortly. Additionally, pit optimisation and mine planning studies also commenced during Q1 2010.
Based on plans for selective mining and the presence of high grade grain flow deposits, the BK11 mine plan is now expected to result in approximately 11.5Mt (million tonnes) of kimberlite at an average grade of 8.5 carats per hundred tonnes (cpht), giving total production of approximately 1 million carats, which Firestone noted was a 22% increase on previous estimates. Furthermore, the overall value of BK11 diamonds is estimated to have increased approximately 13% since December 2009 to US$155/carat.
"With BK11 coming into production in Q2 2010, Firestone is poised to become one of only three kimberlite producers worldwide outside of the major mining companies”, Firestone chief executive Philip Kenny commented.
“Together with our extensive portfolio of kimberlites in the Orapa and Tsabong kimberlite fields, the toll treatment opportunities that the Company has, and the significant shortfall in rough diamond supply projected in the coming years, we are confident about Firestone's future prospects in Botswana”.
The company’s other projects consist of the Orapa Satellite Kimberlites, the Jwaneng Tailings and the Namdeb Toll Treatment Project.
Also in the post-reporting period, Firestone announced its intention to apply for a secondary listing on the Botswana Stock Exchange, the listing application is expected to be made shortly and the listing is planned to take place in Q2 2010.
http://www.proactiveinvestors.co.uk/companies/news/15110/firestone-diamonds-set-to-begin-bk11-production-in-q2-2010--15110.html
“We are only months away from commencing production on schedule and are still on target to reach full production capacity by the end of 2010 - To put a new mine into operation at BK11 just over 3 years from being granted a prospecting licence, and at a much lower cost than comparable operations elsewhere, will have been a significant achievement by any measure”, Firestone chairman James F Kenny stated.
Whilst remaining on schedule, Firestone noted that it required additional capital of approximately £2m, and discussions are at an advanced stage with the company's bankers in Botswana. Early in the period, in July 2009, Firestone raised £7.2m from a share placing in order to finance the development of the projects in Botswana, and to provide general working capital.
Towards the end of the period, in December, Firestone announced that the final phase of the resource evaluation work at BK11 had been completed with positive results, and consequently the company decided to begin the BK11 mine development.
A mining lease application was submitted for BK11 in Q1 2010, and the lease is expected to be granted shortly. Additionally, pit optimisation and mine planning studies also commenced during Q1 2010.
Based on plans for selective mining and the presence of high grade grain flow deposits, the BK11 mine plan is now expected to result in approximately 11.5Mt (million tonnes) of kimberlite at an average grade of 8.5 carats per hundred tonnes (cpht), giving total production of approximately 1 million carats, which Firestone noted was a 22% increase on previous estimates. Furthermore, the overall value of BK11 diamonds is estimated to have increased approximately 13% since December 2009 to US$155/carat.
"With BK11 coming into production in Q2 2010, Firestone is poised to become one of only three kimberlite producers worldwide outside of the major mining companies”, Firestone chief executive Philip Kenny commented.
“Together with our extensive portfolio of kimberlites in the Orapa and Tsabong kimberlite fields, the toll treatment opportunities that the Company has, and the significant shortfall in rough diamond supply projected in the coming years, we are confident about Firestone's future prospects in Botswana”.
The company’s other projects consist of the Orapa Satellite Kimberlites, the Jwaneng Tailings and the Namdeb Toll Treatment Project.
Also in the post-reporting period, Firestone announced its intention to apply for a secondary listing on the Botswana Stock Exchange, the listing application is expected to be made shortly and the listing is planned to take place in Q2 2010.
http://www.proactiveinvestors.co.uk/companies/news/15110/firestone-diamonds-set-to-begin-bk11-production-in-q2-2010--15110.html
Red Rock Resources swings to profit in H1, expects 1st dividend in FY
In its results statement for the six months ended 31 December 2009, Red Rock Resources (AIM: RRR) said the period saw a recovery from the depressed conditions early in 2009, and the gradual maturing of the company's strategies. The company reported an interim pretax profit of £3.2 million compared with a loss of £1.9 in the comparative period of 2008.
Red Rock said that this profit was sufficient to eliminate the accumulated deficit, and provided there are no significant setbacks, it should allow it to declare its first dividend at the 2010 financial year end. Red Rock’s total comprehensive income for the period was £2.9 million (H108: £1.9m loss), which built upon the trend set by the previous full-year, which showed income of £243,860.
The company said the income includes the surplus on revaluation of available for-sale investments, including Red Rock’s holdings in Jupiter Mines (ASX: JMS). “We prefer to adopt a cautious treatment at the interim stage, and have written down the value of those Jupiter shares still subject to escrow”. For calculating the first-half profit, the 54.1m Jupiter shares issued to Red Rock which are subject to escrow until August 2010 were thus valued at their price at the time of issue rather than the current market price.
Since the end of the period, the price of Jupiter’s shares, of which Red Rock held 93.3m at 31 December 2009, had risen from AU$0.195 to AU$0.285, it noted.
Red Rock’s key assets are its shareholdings in Jupiter Mines (ASX: JMS), Resource Star (ASX: RSL) and - through its shareholding in Mid-Migori Mining and Kansai Mining - its stake in the Migori gold project in Kenya. Overall the company also is interested in several assets and projects in Australia and East Africa, covering iron ore and manganese, uranium and rare earths, and gold.
In terms of its investments and operations during the first half, Red Rock completed the sale of its manganese assets to Jupiter Mines, it farmed into and invested in the Migori gold belt, and carried out a number of other transactions relating to its exploration investments.
Since the end of the period, the company’s associates have made considerable progress. The most notable is Jupiter’s deal with Pallinghurst Resources (JSE: PGL) in respect of the Tshipi manganese project. In early March Jupiter announced the major and transformative transaction, which sees it acquire a 49.9% in the project in a deal worth A$490m. Under the terms of the deal, Jupiter will issue 1.1bn new shares to the Pallinghurst co-investors at a price of A$0.2110 per share.
Consequently, Red Rock’s current 25% shareholding will dilute to approximately 6%.
“We support the transaction, which has the potential to make Jupiter one of the world's dominant manganese producers, and though it is the first substantial transaction by Jupiter, we believe and hope that it will not be the last”, Red Rock stated.
In February, Resource Star re-listed on the ASX, as the Australian based uranium explorer raised AUD$4.4m.
Red Rock yesterday announced it completed the acquisition of its interests in the Mid-Migori Mining Company, issuing 4m shares as the third and final tranche of the consideration, payable in respect of the agreement between Red Rock and Kansai, announced in August 2009.
With the completion, Red Rock will become the manager of the mining tenements and related information and intellectual property rights and will be responsible for the cost of exploration of the mining tenements until completion of a bankable feasibility study - at which point the company will own 60% of Mid-Migori Mining.
In terms of its outlook, Red Rock said that whilst it continues to be presented with potentially interesting new projects and challenges, it is focused on protecting the growth in shareholder value, which it believes will come from the maturing of the current portfolio.
Indeed in its own interim statement today, a major shareholder with approximately 30% and fellow resource investor, Regency Mines (AIM: RGM), said it looks ahead with considerable confidence and it believes that the prospects for Red Rock are exceptional.
http://www.proactiveinvestors.co.uk/companies/news/15109/red-rock-resources-swings-to-profit-in-h1-expects-1st-dividend-in-fy-15109.html
Red Rock said that this profit was sufficient to eliminate the accumulated deficit, and provided there are no significant setbacks, it should allow it to declare its first dividend at the 2010 financial year end. Red Rock’s total comprehensive income for the period was £2.9 million (H108: £1.9m loss), which built upon the trend set by the previous full-year, which showed income of £243,860.
The company said the income includes the surplus on revaluation of available for-sale investments, including Red Rock’s holdings in Jupiter Mines (ASX: JMS). “We prefer to adopt a cautious treatment at the interim stage, and have written down the value of those Jupiter shares still subject to escrow”. For calculating the first-half profit, the 54.1m Jupiter shares issued to Red Rock which are subject to escrow until August 2010 were thus valued at their price at the time of issue rather than the current market price.
Since the end of the period, the price of Jupiter’s shares, of which Red Rock held 93.3m at 31 December 2009, had risen from AU$0.195 to AU$0.285, it noted.
Red Rock’s key assets are its shareholdings in Jupiter Mines (ASX: JMS), Resource Star (ASX: RSL) and - through its shareholding in Mid-Migori Mining and Kansai Mining - its stake in the Migori gold project in Kenya. Overall the company also is interested in several assets and projects in Australia and East Africa, covering iron ore and manganese, uranium and rare earths, and gold.
In terms of its investments and operations during the first half, Red Rock completed the sale of its manganese assets to Jupiter Mines, it farmed into and invested in the Migori gold belt, and carried out a number of other transactions relating to its exploration investments.
Since the end of the period, the company’s associates have made considerable progress. The most notable is Jupiter’s deal with Pallinghurst Resources (JSE: PGL) in respect of the Tshipi manganese project. In early March Jupiter announced the major and transformative transaction, which sees it acquire a 49.9% in the project in a deal worth A$490m. Under the terms of the deal, Jupiter will issue 1.1bn new shares to the Pallinghurst co-investors at a price of A$0.2110 per share.
Consequently, Red Rock’s current 25% shareholding will dilute to approximately 6%.
“We support the transaction, which has the potential to make Jupiter one of the world's dominant manganese producers, and though it is the first substantial transaction by Jupiter, we believe and hope that it will not be the last”, Red Rock stated.
In February, Resource Star re-listed on the ASX, as the Australian based uranium explorer raised AUD$4.4m.
Red Rock yesterday announced it completed the acquisition of its interests in the Mid-Migori Mining Company, issuing 4m shares as the third and final tranche of the consideration, payable in respect of the agreement between Red Rock and Kansai, announced in August 2009.
With the completion, Red Rock will become the manager of the mining tenements and related information and intellectual property rights and will be responsible for the cost of exploration of the mining tenements until completion of a bankable feasibility study - at which point the company will own 60% of Mid-Migori Mining.
In terms of its outlook, Red Rock said that whilst it continues to be presented with potentially interesting new projects and challenges, it is focused on protecting the growth in shareholder value, which it believes will come from the maturing of the current portfolio.
Indeed in its own interim statement today, a major shareholder with approximately 30% and fellow resource investor, Regency Mines (AIM: RGM), said it looks ahead with considerable confidence and it believes that the prospects for Red Rock are exceptional.
http://www.proactiveinvestors.co.uk/companies/news/15109/red-rock-resources-swings-to-profit-in-h1-expects-1st-dividend-in-fy-15109.html
Fusion IP posts first profit in H1, says IP pipelines look strong
Fusion IP (AIM: FIP), the university commercialisation company which turns university research into business, reported its first interim profit of £0.9 million as revenues were up from £0.1 million to £0.8 million after the company secured its first major IP licensing deal from the agreement with Sheffild University during the first half.
Fusion IP generated its first profit of £0.9 million after posting a loss of £0.5 million, excluding subsidiary spin-out costs and amortisation, which, if included, make for a loss of £1.2 million compared to a £2.2 million loss for the previous first half.
The group said that the increase in revenues was due to its focus on generating license revenue form the agreement with the University of Sheffield combined with maximizing its consultancy charges. The licensing contract that accounted for £0.4 million of the revenues was with a global orthopaedic company, for the use of orthopaedic planning software that originated from Sheffield's medical physics team and was worth a total £0.8 million.
The cash position was maintained at about the same level as last year at £6.8 million compared to £6.5 million after raising £3 million in November and singing a co-investment agreement with IP Group (AIM: IPO), which took a 19.8% stake in the company.
Three more spin-out companies were created, comprising Asalus Medical Instruments, Seren Photonics and Progenteq, while the fair value of investments rose from £0.5 million to £0.8 million.
“This has been a good period for the company, one in which we have raised funds, broadly progressed the portfolio, signed agreements with key new investors and importantly moved towards profitability. Our relationships with our universities remain as positive as ever and our IP pipelines continue to look very strong. We look forward to the rest of the financial year,” said chief executive of Fusion IP David Baynes.
The co-investment agreement with IP Group gives it the right to acquire at a predetermined portfolio company valuation of £500,000, 20% of Fusion's equity in any new portfolio company formed from its agreements with Cardiff University and Sheffield University, which normally equates to a 12% stake in the new portfolio company's share capital. IP Group’s chief technology officer Alison Fielding has joined Fusion IP’s board as a non-executive director.
http://www.proactiveinvestors.co.uk/companies/news/15105/fusion-ip-posts-first-profit-in-h1-says-ip-pipelines-look-strong-15105.html
Fusion IP generated its first profit of £0.9 million after posting a loss of £0.5 million, excluding subsidiary spin-out costs and amortisation, which, if included, make for a loss of £1.2 million compared to a £2.2 million loss for the previous first half.
The group said that the increase in revenues was due to its focus on generating license revenue form the agreement with the University of Sheffield combined with maximizing its consultancy charges. The licensing contract that accounted for £0.4 million of the revenues was with a global orthopaedic company, for the use of orthopaedic planning software that originated from Sheffield's medical physics team and was worth a total £0.8 million.
The cash position was maintained at about the same level as last year at £6.8 million compared to £6.5 million after raising £3 million in November and singing a co-investment agreement with IP Group (AIM: IPO), which took a 19.8% stake in the company.
Three more spin-out companies were created, comprising Asalus Medical Instruments, Seren Photonics and Progenteq, while the fair value of investments rose from £0.5 million to £0.8 million.
“This has been a good period for the company, one in which we have raised funds, broadly progressed the portfolio, signed agreements with key new investors and importantly moved towards profitability. Our relationships with our universities remain as positive as ever and our IP pipelines continue to look very strong. We look forward to the rest of the financial year,” said chief executive of Fusion IP David Baynes.
The co-investment agreement with IP Group gives it the right to acquire at a predetermined portfolio company valuation of £500,000, 20% of Fusion's equity in any new portfolio company formed from its agreements with Cardiff University and Sheffield University, which normally equates to a 12% stake in the new portfolio company's share capital. IP Group’s chief technology officer Alison Fielding has joined Fusion IP’s board as a non-executive director.
http://www.proactiveinvestors.co.uk/companies/news/15105/fusion-ip-posts-first-profit-in-h1-says-ip-pipelines-look-strong-15105.html
GlaxoSmithKline taps into Isis Pharmaceuticals antisense drug platform
A growing trend in the past decade for even the largest pharmaceutical companies is to regularly partner with other companies in an effort to maximise exposure to a varied range of potential new drug candidates while also sharing out the high costs of developing new therapies.
London and New York pharmaceutical giant GlaxoSmithKline (NYSE:GSK, LSE:GSK) (“Glaxo”) has been one of the leader in this area, continually seeking new partnerships while also regularly restricting its own operations in an attempt to maximise its drug development pipeline while keeping research and development costs in check.
This morning Glaxo announced a new strategic alliance with US listed Isis Pharmaceuticals (NASDAQ:ISIS)(“Isis”) to jointly develop new therapies using Isis’ antisense drug delivery platform. The alliance will focus on potential candidates for rare and serious disease, including conditions that cause blindness and infectious diseases.
Antisense therapies target proteins involved in disease processes through the RNA that is involved in building these proteins. Isis’ platform develops therapies that bind to messenger RNA (mRNA) and inhibit the production of disease-causing protein.
Under the terms of the agreement announced this morning Glaxo will pay Isis an upfront fee of US$35 million and up to US$20 million in milestones up to Phase 2 proof of concept (PoC) per program. The agreement covers up to six programs. At the PoC stage, Glaxo will have an option to license the compound and will fund all additional development and commercialization costs. Isis will also receive license and milestone payments on any compound that reaches commercialization.
The total potential value of the milestone and license fees, based on Glaxo successfully developing one or more compounds from each program, is nearly US$1.5 billion. Isis will additionally receive up to double-digit royalties on sales from any product that is successfully commercialized.
“This alliance provides GSK with access to Isis' expertise in drug discovery and development of RNA-targeted therapeutics, with Isis retaining responsibility for the discovery and development of compounds to the alliance targets from inception to PoC,” Glaxo stated.
Isis Pharmaceuticals has already successfully commercialized the world's first antisense drug, and has 22 drugs in development.
http://www.proactiveinvestors.co.uk/companies/news/15104/glaxosmithkline-taps-into-isis-pharmaceuticals-antisense-drug-platform-15104.html
London and New York pharmaceutical giant GlaxoSmithKline (NYSE:GSK, LSE:GSK) (“Glaxo”) has been one of the leader in this area, continually seeking new partnerships while also regularly restricting its own operations in an attempt to maximise its drug development pipeline while keeping research and development costs in check.
This morning Glaxo announced a new strategic alliance with US listed Isis Pharmaceuticals (NASDAQ:ISIS)(“Isis”) to jointly develop new therapies using Isis’ antisense drug delivery platform. The alliance will focus on potential candidates for rare and serious disease, including conditions that cause blindness and infectious diseases.
Antisense therapies target proteins involved in disease processes through the RNA that is involved in building these proteins. Isis’ platform develops therapies that bind to messenger RNA (mRNA) and inhibit the production of disease-causing protein.
Under the terms of the agreement announced this morning Glaxo will pay Isis an upfront fee of US$35 million and up to US$20 million in milestones up to Phase 2 proof of concept (PoC) per program. The agreement covers up to six programs. At the PoC stage, Glaxo will have an option to license the compound and will fund all additional development and commercialization costs. Isis will also receive license and milestone payments on any compound that reaches commercialization.
The total potential value of the milestone and license fees, based on Glaxo successfully developing one or more compounds from each program, is nearly US$1.5 billion. Isis will additionally receive up to double-digit royalties on sales from any product that is successfully commercialized.
“This alliance provides GSK with access to Isis' expertise in drug discovery and development of RNA-targeted therapeutics, with Isis retaining responsibility for the discovery and development of compounds to the alliance targets from inception to PoC,” Glaxo stated.
Isis Pharmaceuticals has already successfully commercialized the world's first antisense drug, and has 22 drugs in development.
http://www.proactiveinvestors.co.uk/companies/news/15104/glaxosmithkline-taps-into-isis-pharmaceuticals-antisense-drug-platform-15104.html
Synchronica to acquire instant messaging business and raise up to £4.8m
Synchronica (AIM: SYNC) has agreed the acquisition of IMPS instant messaging business Colibria AS in a structured deal totalling €750,000 in cash and approximately 128 million shares. Additionally, the company announced that it will conduct a placing and an equity-swap placing, raising up to £4.8 million.
“Colibria's proven, carrier-grade mobile IM technology and emerging markets-oriented customer base complement Synchronica's focus on open standards-based messaging solutions for mobile operators in developing economies”, Synchronica stated.
The company intends to incorporate Colibria's IMPS technology into the Mobile Gateway product and pre-install it on the MessagePhone low-cost device. The acquisition includes a number of significant benefits including the transfer of 13 carrier contracts, of which two large carrier groups have an addressable market of more than 320 million subscribers. The deal also sees the transfer of Colibria's related reseller agreements with Nokia Siemens Networks and Acision.
In terms of assets and operations, Synchronica will transfer certain Colibria employees, ensuring a continuous development of the products and support for transferred contracts. The company also gains Colibria's Instant Messaging and Presence Service (IMPS), Colibria's Windows Live Messenger Gateway, Colibria's Social Network Gateway and its dedicated SaaS (Software as a Service) App Centre.
In a note to investors, London-based stockbroker FinnCap highlighted that Synchronica is now placed to offer a complete next-generation messaging solution and its Mobile Gateway product will be enhanced with the proven and scalable IMPS instant messaging technology.
Company researcher, Equity Development (ED) described the acquisition as “the right deal, at the right time”, and said that the acquired business is very complementary to Synchronica‟s mobile email business, as both technologies are based on industry standards and each business leveraging in-built handset clients.
Under the terms of the cash and stock deal, Synchronica will pay €750,000 in cash and 54 million shares on the closing date - which is anticipated to be 21 April 2010. A further 72 million shares will be issued to the vendor six months after the closing date.
According to Synchronica, it plans to use the acquisition as a springboard for cross-selling and up-selling opportunities as it expands its market share in the rapidly expanding emerging markets.
Synchronica announced two separate equity-based fundraisings, firstly the company intends to issue 111.6 million shares placed at a price of 2.5p, raising gross proceeds of £2.8 million. The placing shares will represent approximately 13.2% of the enlarged share capital and they are expected to be admitted to trading on London’s AIM market on 22 April 2010.
Separately, the company has entered into a contract with an institutional investor, whereby Synchronica will issue 80 million new shares to an escrow agent and similarly the investor will lodge £2 million in government bonds into an escrow account.
Over a two year period the escrow agent will convert and release the funds to Synchronica, on a monthly basis. The conversion into capital will be calculated in relation to a reference price of 3.3333p per share and an average mid market share price (linked to the preceding month).
Each month for the next two years the escrow agent will release to Synchronica a sum calculated by reference to the average mid market share price on the five business days at the end of the preceding month.
The equity-swap shares are expected to be admitted on 7 April 2010.
http://www.proactiveinvestors.co.uk/companies/news/15102/synchronica-to-acquire-instant-messaging-business-and-raise-up-to-48m-15102.html
“Colibria's proven, carrier-grade mobile IM technology and emerging markets-oriented customer base complement Synchronica's focus on open standards-based messaging solutions for mobile operators in developing economies”, Synchronica stated.
The company intends to incorporate Colibria's IMPS technology into the Mobile Gateway product and pre-install it on the MessagePhone low-cost device. The acquisition includes a number of significant benefits including the transfer of 13 carrier contracts, of which two large carrier groups have an addressable market of more than 320 million subscribers. The deal also sees the transfer of Colibria's related reseller agreements with Nokia Siemens Networks and Acision.
In terms of assets and operations, Synchronica will transfer certain Colibria employees, ensuring a continuous development of the products and support for transferred contracts. The company also gains Colibria's Instant Messaging and Presence Service (IMPS), Colibria's Windows Live Messenger Gateway, Colibria's Social Network Gateway and its dedicated SaaS (Software as a Service) App Centre.
In a note to investors, London-based stockbroker FinnCap highlighted that Synchronica is now placed to offer a complete next-generation messaging solution and its Mobile Gateway product will be enhanced with the proven and scalable IMPS instant messaging technology.
Company researcher, Equity Development (ED) described the acquisition as “the right deal, at the right time”, and said that the acquired business is very complementary to Synchronica‟s mobile email business, as both technologies are based on industry standards and each business leveraging in-built handset clients.
Under the terms of the cash and stock deal, Synchronica will pay €750,000 in cash and 54 million shares on the closing date - which is anticipated to be 21 April 2010. A further 72 million shares will be issued to the vendor six months after the closing date.
According to Synchronica, it plans to use the acquisition as a springboard for cross-selling and up-selling opportunities as it expands its market share in the rapidly expanding emerging markets.
Synchronica announced two separate equity-based fundraisings, firstly the company intends to issue 111.6 million shares placed at a price of 2.5p, raising gross proceeds of £2.8 million. The placing shares will represent approximately 13.2% of the enlarged share capital and they are expected to be admitted to trading on London’s AIM market on 22 April 2010.
Separately, the company has entered into a contract with an institutional investor, whereby Synchronica will issue 80 million new shares to an escrow agent and similarly the investor will lodge £2 million in government bonds into an escrow account.
Over a two year period the escrow agent will convert and release the funds to Synchronica, on a monthly basis. The conversion into capital will be calculated in relation to a reference price of 3.3333p per share and an average mid market share price (linked to the preceding month).
Each month for the next two years the escrow agent will release to Synchronica a sum calculated by reference to the average mid market share price on the five business days at the end of the preceding month.
The equity-swap shares are expected to be admitted on 7 April 2010.
http://www.proactiveinvestors.co.uk/companies/news/15102/synchronica-to-acquire-instant-messaging-business-and-raise-up-to-48m-15102.html
Asterand results in line with broker forecasts, looks to 2010 with optimism
Human tissue and human tissue based research services supplier Asterand (AIM: ATD) reported full-year results in line with broker expectations, making major steps to set the foundation for further business development when the pharmaceutical industry rebounds, while highlighting the 20% growth in base business achieved during the period.
Brokers noted the group’s progress in addressing supply issues and the acquisition of BioSeek as highlights for the period.
Revenues dipped from £15.2 million to £12 million. Asterand reported a loss of 1.1 million in 2009 compared with a profit of £3.9 million a year earlier, however, 2008 results included a one-off payment from Allergan for non-base business of US$6.25 million. Cash resources as at December 31 2009 were at £4.2 million, down from £6.9 million a year earlier.
The company posted a 20% increase in base business revenue to £9.5 million, or a 7% rise at constant exchange rates, improved gross margins from 56% to 57% and it made significant investments in the supply network, having signed agreements with East-West Bio of Paris and an Asian collaborator to add 22 new sites in Europe and Asia.
“During an extremely tumultuous year which saw significant R&D retrenchment in the pharmaceutical and biotech sector, Asterand fared better than most. Indeed, we have seen increasing demand for human tissue solutions, even against these turbulent industry headwinds. We experienced 7% growth in our base business at constant exchange rates. While others downsized and restricted expansion, we chose to innovate and make bold investments for future growth,” said chief executive Martyn Coombs.
The company has expanded its supply network and acquired new technologies, causing the operating expenses to rose 30% to £7.8 million, while general and administrative expenses decreased by £0.1 million.
The company managed to achieve EBITDA (earnings before interest, taxes, depreciation and amortisation) of £0.21 million compared to £1 million in 2008.
“Going forward, we seek to lead the development of the human-based solution market. Our investments have set the stage for continued growth and future profitability. We are very optimistic about the future,” added Coombs.
Other developments included the execution of two more global supply agreements with pharmaceutical companies, the extension of collaboration with Bristol-Myers Squibb for up to three years and the singing of a collaboration agreement with Abcam for the validation and characterisation of select antibodies through the PhaseZERO services platform.
Post-period, the company has completed the acquisition of BioSeek to expand into predictive human biology. Asterand's UK facility in Royston has been accepted as a member of the UK Good Laboratory Practice (GLP) Compliance Monitoring Programme, allowing the business to offer GLP compliant preclinical services to its pharmaceutical and biotech clients, and it signed a development collaboration deal with Ono Pharmaceuticals.
Asterand said that the outlook was positive, expecting its 2009 investments to set up a foundation for the company to “lead in the marketplace in 2010 and beyond".
Daniel Stewart & Company (DS&C) said Asterand’s performance was in line with expectations, while noting the 7% growth in its core tissue supply business amid significant reduction of R&D spending in the pharmaceutical industry. The broker also called the BioSeek acquisition the “key highlight” of the period, saying that its core product throughput assay system BioMAP is highly complementary with Asterand’s current product and service portfolio.
Cenkos Securities also issued a note on Asterand, saying the group has made great strides by investing in its supplier network, making the acquisition of BioSeek, gaining GLP accreditation and expanding its sales force to leverage global partnerships. It does not expect the current year to be without difficulty but Asterand has positioned itself at the forefront of the human tissue testing market. Human tissue testing is becoming mission critical to the pharmaceutical industry.
Continued high drug development attrition rates have led to costs soaring to C$1billion to bring a drug to market and pharma companies are turning to in vitro human testing as they look for efficiencies, Cenkos added.
http://www.proactiveinvestors.co.uk/companies/news/15043/asterand-results-in-line-with-broker-forecasts-looks-to-2010-with-optimism-15043.html
Brokers noted the group’s progress in addressing supply issues and the acquisition of BioSeek as highlights for the period.
Revenues dipped from £15.2 million to £12 million. Asterand reported a loss of 1.1 million in 2009 compared with a profit of £3.9 million a year earlier, however, 2008 results included a one-off payment from Allergan for non-base business of US$6.25 million. Cash resources as at December 31 2009 were at £4.2 million, down from £6.9 million a year earlier.
The company posted a 20% increase in base business revenue to £9.5 million, or a 7% rise at constant exchange rates, improved gross margins from 56% to 57% and it made significant investments in the supply network, having signed agreements with East-West Bio of Paris and an Asian collaborator to add 22 new sites in Europe and Asia.
“During an extremely tumultuous year which saw significant R&D retrenchment in the pharmaceutical and biotech sector, Asterand fared better than most. Indeed, we have seen increasing demand for human tissue solutions, even against these turbulent industry headwinds. We experienced 7% growth in our base business at constant exchange rates. While others downsized and restricted expansion, we chose to innovate and make bold investments for future growth,” said chief executive Martyn Coombs.
The company has expanded its supply network and acquired new technologies, causing the operating expenses to rose 30% to £7.8 million, while general and administrative expenses decreased by £0.1 million.
The company managed to achieve EBITDA (earnings before interest, taxes, depreciation and amortisation) of £0.21 million compared to £1 million in 2008.
“Going forward, we seek to lead the development of the human-based solution market. Our investments have set the stage for continued growth and future profitability. We are very optimistic about the future,” added Coombs.
Other developments included the execution of two more global supply agreements with pharmaceutical companies, the extension of collaboration with Bristol-Myers Squibb for up to three years and the singing of a collaboration agreement with Abcam for the validation and characterisation of select antibodies through the PhaseZERO services platform.
Post-period, the company has completed the acquisition of BioSeek to expand into predictive human biology. Asterand's UK facility in Royston has been accepted as a member of the UK Good Laboratory Practice (GLP) Compliance Monitoring Programme, allowing the business to offer GLP compliant preclinical services to its pharmaceutical and biotech clients, and it signed a development collaboration deal with Ono Pharmaceuticals.
Asterand said that the outlook was positive, expecting its 2009 investments to set up a foundation for the company to “lead in the marketplace in 2010 and beyond".
Daniel Stewart & Company (DS&C) said Asterand’s performance was in line with expectations, while noting the 7% growth in its core tissue supply business amid significant reduction of R&D spending in the pharmaceutical industry. The broker also called the BioSeek acquisition the “key highlight” of the period, saying that its core product throughput assay system BioMAP is highly complementary with Asterand’s current product and service portfolio.
Cenkos Securities also issued a note on Asterand, saying the group has made great strides by investing in its supplier network, making the acquisition of BioSeek, gaining GLP accreditation and expanding its sales force to leverage global partnerships. It does not expect the current year to be without difficulty but Asterand has positioned itself at the forefront of the human tissue testing market. Human tissue testing is becoming mission critical to the pharmaceutical industry.
Continued high drug development attrition rates have led to costs soaring to C$1billion to bring a drug to market and pharma companies are turning to in vitro human testing as they look for efficiencies, Cenkos added.
http://www.proactiveinvestors.co.uk/companies/news/15043/asterand-results-in-line-with-broker-forecasts-looks-to-2010-with-optimism-15043.html
Ovoca Gold hires contractor for Rassoshinskaya diamond drill programme, appoints new CFO
Ovoca Gold (AIM: OVG) has contracted a drilling company to start the planned diamond drill programme at the Rassoshinskaya property in April, and announced the appointments of a new chief financial officer, a non-exceutive director and a corporate secretary.
The company has hired Dukat Geological Expedition Company (DGGK) to conduct the 8,000 metre surface drill programme at Rassoshinskaya in Russia's far eastern Magadan region, which has the primary objective of expanding the resource potential of the Olcha ore body on the property both along strike and at depth. Ovoca has also planned a 7,000 metre trenching programme, which is expected to start in late June, the majority of which will be conducted at the Podgomensky ore district to identify drilling targets for the future.
“The start of drilling mobilization at Rassoshinskaya is particularly exciting as it marks the beginning of work on this highly prospective project under the banner of Ovoca Gold. There is significant equipment on site left from the vendors of the property, which allows us a very short lead time from mobilization to drilling,” said chief executive of Ovoca Tim McCutcheon.
The drill and trench season is expected to last until September. Ovoca is now preparing to undertake mobilization for Nevsko-Pestrinskoye, expecting to complete it by the end of Q2.
The company has also announced changes to its management team, appointing Svetlana Radchenko as CFO and Kirill Golovanov as corporate secretary to replace Danesh Varma, who served as both CFO and corporate secretary before stepping down. Radchenko has previously served as a financial advisor at Ovoca, while Golovanov served as corporate advisor and later as manager of the company’s Russian representative office. Ovoca has also added former BHP Billiton (LSE: BLT, ASX:BHP) exploration manager Donald Schissel as a non-executive director.
Ovoca had a total cash and securities position of US$45.7 million at 29 March 2010, including 1.5 million shares in Polymetal worth at closing 29 March 2010 US$16.1 million.
The company completed the acquisition of 100% of ZAO Bulun, OOO Magsel and OOO Olymp and has so far paid the equity portion of the transaction totalling US$7 million and has partially paid the assumed debt of US$7.5 million with US$2.5 million of this debt currently outstanding.
Shares in the company added 6.5% on the news.
http://www.proactiveinvestors.co.uk/companies/news/15101/ovoca-gold-hires-contractor-for-rassoshinskaya-diamond-drill-programme-appoints-new-cfo-15101.html
The company has hired Dukat Geological Expedition Company (DGGK) to conduct the 8,000 metre surface drill programme at Rassoshinskaya in Russia's far eastern Magadan region, which has the primary objective of expanding the resource potential of the Olcha ore body on the property both along strike and at depth. Ovoca has also planned a 7,000 metre trenching programme, which is expected to start in late June, the majority of which will be conducted at the Podgomensky ore district to identify drilling targets for the future.
“The start of drilling mobilization at Rassoshinskaya is particularly exciting as it marks the beginning of work on this highly prospective project under the banner of Ovoca Gold. There is significant equipment on site left from the vendors of the property, which allows us a very short lead time from mobilization to drilling,” said chief executive of Ovoca Tim McCutcheon.
The drill and trench season is expected to last until September. Ovoca is now preparing to undertake mobilization for Nevsko-Pestrinskoye, expecting to complete it by the end of Q2.
The company has also announced changes to its management team, appointing Svetlana Radchenko as CFO and Kirill Golovanov as corporate secretary to replace Danesh Varma, who served as both CFO and corporate secretary before stepping down. Radchenko has previously served as a financial advisor at Ovoca, while Golovanov served as corporate advisor and later as manager of the company’s Russian representative office. Ovoca has also added former BHP Billiton (LSE: BLT, ASX:BHP) exploration manager Donald Schissel as a non-executive director.
Ovoca had a total cash and securities position of US$45.7 million at 29 March 2010, including 1.5 million shares in Polymetal worth at closing 29 March 2010 US$16.1 million.
The company completed the acquisition of 100% of ZAO Bulun, OOO Magsel and OOO Olymp and has so far paid the equity portion of the transaction totalling US$7 million and has partially paid the assumed debt of US$7.5 million with US$2.5 million of this debt currently outstanding.
Shares in the company added 6.5% on the news.
http://www.proactiveinvestors.co.uk/companies/news/15101/ovoca-gold-hires-contractor-for-rassoshinskaya-diamond-drill-programme-appoints-new-cfo-15101.html
IPSA Group intends to progress coal-fired developments in the Eastern Cape of South Africa
In its full-year results report, the IPSA Group (AIM: IPSA) said that whilst it has been a difficult year, the recent loan-note issue provides working capital to enable it to progress the coal-fired developments in the Eastern Cape, in addition to securing the sale of its surplus turbines and the power purchase agreement (PPA) for the plant in Newcastle, South Africa.
IPSA said that financing remains its top priority for the coming year and significant risks still remain. During the period, the company signed a standstill agreement with major creditors Standard Bank and TurboCare to January 2011, concurrently a tri-partite marketing agreement was also signed.
“In the coming twelve months the company is focussing its efforts on completing the sale of the four gas turbines and on developing the coal-fired capacity in the Eastern Cape, in addition to securing the long-awaited PPA for our plant at Newcastle”, IPSA Chief Executive Peter Earl commented.
According to IPSA, the marketing agreement is an important development that puts it in a good position to sell the turbines from a position of strength. The company is trying to sell four Siemens Westinghouse 501 DU gas turbines it originally acquired for the proposed Coega fast track project at Port Elizabeth. Delays to the procurement process for that project have persuaded the board to seek to sell the turbines.
The company’s chairman Stephen Hargrave announced today that he will be stepping down at the company’s AGM, to focus on other matters both in business and outside.
During the six-months ended 30 September 2009, IPSA reported a net loss of £5.5m compared to a £4.5m loss in the comparative period in the previous financial year.
Earlier this month, IPSA raised £650,000 through the issue of unsecured loan notes to the RAB Energy Fund and certain other investors. The unsecured loan notes carry 6% interest per annum, and are due for repayment on the earlier of: the 31 January 2011.
IPSA intends to use the proceeds of the loan notes to develop the Elitheni coal project at Indwe, South Africa, and for general working capital purposes. Additionally the subscribers were also issued warrants over 6.5m ordinary shares of 2p each, exercisable between the repayment date and 30 months thereafter. The warrants can be exercised at up to 19p per share.
http://www.proactiveinvestors.co.uk/companies/news/15100/ipsa-group-intends-to-progress-coal-fired-developments-in-the-eastern-cape-of-south-africa-15100.html
IPSA said that financing remains its top priority for the coming year and significant risks still remain. During the period, the company signed a standstill agreement with major creditors Standard Bank and TurboCare to January 2011, concurrently a tri-partite marketing agreement was also signed.
“In the coming twelve months the company is focussing its efforts on completing the sale of the four gas turbines and on developing the coal-fired capacity in the Eastern Cape, in addition to securing the long-awaited PPA for our plant at Newcastle”, IPSA Chief Executive Peter Earl commented.
According to IPSA, the marketing agreement is an important development that puts it in a good position to sell the turbines from a position of strength. The company is trying to sell four Siemens Westinghouse 501 DU gas turbines it originally acquired for the proposed Coega fast track project at Port Elizabeth. Delays to the procurement process for that project have persuaded the board to seek to sell the turbines.
The company’s chairman Stephen Hargrave announced today that he will be stepping down at the company’s AGM, to focus on other matters both in business and outside.
During the six-months ended 30 September 2009, IPSA reported a net loss of £5.5m compared to a £4.5m loss in the comparative period in the previous financial year.
Earlier this month, IPSA raised £650,000 through the issue of unsecured loan notes to the RAB Energy Fund and certain other investors. The unsecured loan notes carry 6% interest per annum, and are due for repayment on the earlier of: the 31 January 2011.
IPSA intends to use the proceeds of the loan notes to develop the Elitheni coal project at Indwe, South Africa, and for general working capital purposes. Additionally the subscribers were also issued warrants over 6.5m ordinary shares of 2p each, exercisable between the repayment date and 30 months thereafter. The warrants can be exercised at up to 19p per share.
http://www.proactiveinvestors.co.uk/companies/news/15100/ipsa-group-intends-to-progress-coal-fired-developments-in-the-eastern-cape-of-south-africa-15100.html
Pan African Resources to take 25% stake in RK1 Consortium for access to low cost PGM
Pan African Resources (AIM: PAF, JSE: PAN) has agreed to acquire a 25% stake in RK1 Consortium, which operates a PGM (platinum group metals) concentrator plant from Ivanhoe Nickel & Platinum Limited for ZAR 53 million, or £4.8 million.
Pan African said that the acquisition will allow it to gain access to low cost PGM ounces, strengthen earnings and operating cash flows, provide it with further growth opportunities and enable it to benefit from medium and long term demand for PGMs.
The company is acquiring Ivanhoe's wholly-owned units GB Mining and RKR Mining, which together hold a 25% participating interest in the RK1 Consortium. The other members of the RK1 Consortium are FTSE 250 constituent Aquarius Platinum (LSE: AQP), which holds a 50% participating interest, and Sylvania Resources (AIM: SLV)with a 25% interest.
The RK1 Consortium owns a chromite tailings retreatment plant (CTRP) situated at Kroondal on the Western Limb of the Bushveld Complex in the North West Province of South Africa which produces PGM concentrate. The Aquarius-operated CTRP treats old dump material and current tailings streams derived from the beneficiation processes employed by nearby chromite mines.
The CTRP produced 6,824 ounces, or 246,600 tonnes at 2.34g/t (grammes per tonne) of four PGE (platinum group elements), including platinum (60.9%), palladium (21.9%), rhodium (16.9%) and gold (0.2%) at an average cost of US$332 per ounce for the 12-month period ended 30 June 2009. For the equivalent period of 2008 the CPRT produced 9,849 ounces (274,000 tonnes at 4.20 g/t) of four PGM at an average cost of US$360/oz. The decline in production was largely due to disruptions in tailings streams supplies. The company said that significant progress has been made with securing mid-term and long-term tailings supply sources.
The profit before tax attributable to the CTRP for the same period was approximately ZAR3.09 million £0.24 million compared to ZAR50 million, or £4.5 million in 2008.
The transaction hinges on securing the necessary regulatory approvals and the completion of due diligence by Pan African, which is expected to be completed by the end of April 2010.
Pan African announced in February that it had moved closer to agreeing terms with ferrochrome producer International Ferro Metals (LSE: IFL) that will allow the construction of a chrome tailings retreatment plant.
Pan African’s subsidiary Phoenix Platinum is seeking to build the plant at International Ferro Metals' Lesedi operations to extract PGMs from historic chrome tailings. International Ferro Metals also holds a 25% Net Profit Interest (NPI) on the PGM contained in the tailings at Lesedi.
Phoenix Platinum owns the rights to the PGM content in the current and historical chrome tailings discards, which were generated from chrome seam mining in the Bushveld Igneous Complex. Pan African Resources reckons the tailings on site could support an operation processing 240,000 tonnes per annum for 17 years, producing approximately 11,000 ounces PGM 4E (platinum, palladium, rhodium and gold) annually. The current estimated capital expenditure to build the facility is £6 million.
http://www.proactiveinvestors.co.uk/companies/news/15089/pan-african-resources-to-take-25-stake-in-rk1-consortium-for-access-to-low-cost-pgm-15089.html
Pan African said that the acquisition will allow it to gain access to low cost PGM ounces, strengthen earnings and operating cash flows, provide it with further growth opportunities and enable it to benefit from medium and long term demand for PGMs.
The company is acquiring Ivanhoe's wholly-owned units GB Mining and RKR Mining, which together hold a 25% participating interest in the RK1 Consortium. The other members of the RK1 Consortium are FTSE 250 constituent Aquarius Platinum (LSE: AQP), which holds a 50% participating interest, and Sylvania Resources (AIM: SLV)with a 25% interest.
The RK1 Consortium owns a chromite tailings retreatment plant (CTRP) situated at Kroondal on the Western Limb of the Bushveld Complex in the North West Province of South Africa which produces PGM concentrate. The Aquarius-operated CTRP treats old dump material and current tailings streams derived from the beneficiation processes employed by nearby chromite mines.
The CTRP produced 6,824 ounces, or 246,600 tonnes at 2.34g/t (grammes per tonne) of four PGE (platinum group elements), including platinum (60.9%), palladium (21.9%), rhodium (16.9%) and gold (0.2%) at an average cost of US$332 per ounce for the 12-month period ended 30 June 2009. For the equivalent period of 2008 the CPRT produced 9,849 ounces (274,000 tonnes at 4.20 g/t) of four PGM at an average cost of US$360/oz. The decline in production was largely due to disruptions in tailings streams supplies. The company said that significant progress has been made with securing mid-term and long-term tailings supply sources.
The profit before tax attributable to the CTRP for the same period was approximately ZAR3.09 million £0.24 million compared to ZAR50 million, or £4.5 million in 2008.
The transaction hinges on securing the necessary regulatory approvals and the completion of due diligence by Pan African, which is expected to be completed by the end of April 2010.
Pan African announced in February that it had moved closer to agreeing terms with ferrochrome producer International Ferro Metals (LSE: IFL) that will allow the construction of a chrome tailings retreatment plant.
Pan African’s subsidiary Phoenix Platinum is seeking to build the plant at International Ferro Metals' Lesedi operations to extract PGMs from historic chrome tailings. International Ferro Metals also holds a 25% Net Profit Interest (NPI) on the PGM contained in the tailings at Lesedi.
Phoenix Platinum owns the rights to the PGM content in the current and historical chrome tailings discards, which were generated from chrome seam mining in the Bushveld Igneous Complex. Pan African Resources reckons the tailings on site could support an operation processing 240,000 tonnes per annum for 17 years, producing approximately 11,000 ounces PGM 4E (platinum, palladium, rhodium and gold) annually. The current estimated capital expenditure to build the facility is £6 million.
http://www.proactiveinvestors.co.uk/companies/news/15089/pan-african-resources-to-take-25-stake-in-rk1-consortium-for-access-to-low-cost-pgm-15089.html
Regency Mines turns profit after nickel prices recover and associate Red Rock boosts income
For the six-months ended 31 December 2009, Regency Mines (AIM: RGM) reported a pretax profit of £388,164 compared to a £1.4m loss in the comparative period in 2008, and said it is loolking ahead with confidence.
The company owns almost 30% of Red Rock Resources (AIM: RRR), and this investment contributed £634,001 to Regency in the half-year period. The strong financial performance was also buoyed by a surplus on the revaluation of available for-sale financial assets and exploration properties.
The year-on-year rise in the value of exploration properties was boosted by a write-back of provisionally written-off exploration expenditure.
Regency said that last year nickel prices were hitting their lows and pessimism about the world economy was at an extreme, consequently it seemed appropriate to assume no value in exploration carried out. However following the recovery in nickel prices and in stainless steel demand, at the time of audit, the company believed no provision was deemed necessary.
The assessment of Regency’s Mambare project in Papua New Guinea is continuing, and the company said that it is working closely with its partners at Direct Nickel Pty on structuring the project’s next steps. ‘We await the imminent release of new geophysical data by the Papua New Guinea government, following which we will embark on the next stage of exploration’, Regency said.
Elsewhere, an initial drill programme has begun at the Western Australian tenements, in the Lake Johnstone greenstone belt, and the first phase of 2,600m drilling has been completed. Regency said that the programme targets potential gold and nickel mineralisation, and initial encouraging indications are that the geological boundary has been found, and the right type of rocks are present.
Also the company has acquired more promising tenements in Western Australia and it is reviewing the extensive portfolio, with a view to optimising the potential value through joint-ventures, disposals or exploration.
Regency said it continuously reviews opportunities, but as it believes in the long term investment fundamentals for nickel are now improving, it expects to retain a focus on the company’s core commodity.
For the remainder of the financial year, Regency said that it looks to the remaining months with considerable confidence and it believes that the prospects for Red Rock are exceptional. Furthermore, it expects to have developments of its own to announce, Regency stated.
http://www.proactiveinvestors.co.uk/companies/news/15077/regency-mines-turns-profit-after-nickel-prices-recover-and-associate-red-rock-boosts-income-15077.html
The company owns almost 30% of Red Rock Resources (AIM: RRR), and this investment contributed £634,001 to Regency in the half-year period. The strong financial performance was also buoyed by a surplus on the revaluation of available for-sale financial assets and exploration properties.
The year-on-year rise in the value of exploration properties was boosted by a write-back of provisionally written-off exploration expenditure.
Regency said that last year nickel prices were hitting their lows and pessimism about the world economy was at an extreme, consequently it seemed appropriate to assume no value in exploration carried out. However following the recovery in nickel prices and in stainless steel demand, at the time of audit, the company believed no provision was deemed necessary.
The assessment of Regency’s Mambare project in Papua New Guinea is continuing, and the company said that it is working closely with its partners at Direct Nickel Pty on structuring the project’s next steps. ‘We await the imminent release of new geophysical data by the Papua New Guinea government, following which we will embark on the next stage of exploration’, Regency said.
Elsewhere, an initial drill programme has begun at the Western Australian tenements, in the Lake Johnstone greenstone belt, and the first phase of 2,600m drilling has been completed. Regency said that the programme targets potential gold and nickel mineralisation, and initial encouraging indications are that the geological boundary has been found, and the right type of rocks are present.
Also the company has acquired more promising tenements in Western Australia and it is reviewing the extensive portfolio, with a view to optimising the potential value through joint-ventures, disposals or exploration.
Regency said it continuously reviews opportunities, but as it believes in the long term investment fundamentals for nickel are now improving, it expects to retain a focus on the company’s core commodity.
For the remainder of the financial year, Regency said that it looks to the remaining months with considerable confidence and it believes that the prospects for Red Rock are exceptional. Furthermore, it expects to have developments of its own to announce, Regency stated.
http://www.proactiveinvestors.co.uk/companies/news/15077/regency-mines-turns-profit-after-nickel-prices-recover-and-associate-red-rock-boosts-income-15077.html
North River Resources reports on transformational first half
In the six months ended 31 December 2009, North River Resources (AIM: NRRP) has strengthened its position as emerging southern Africa focused resource company. Most notably with the acquisition of a highly prospective portfolio of Namibian base metal and gold assets from Kalahari Minerals (AIM: KAH) - which subsequently became the company’s largest shareholder with a 44.9% stake in North River.
North River has changed its accounting reference date to December 31 from June 30, aligning the the company’s financial calendar with that of Kalahari Minerals.
"This acquisition not only provided an exciting portfolio of well-developed projects - on which £8 million had been previously invested - but also afforded the company a major strategic investor in Kalahari", North River said in its interim results statement.
North River believes that the support of and affiliation with Kalahari will strengthen its position and create further growth opportunities in the southern African mining arena. Additionally, the deal also bolstered the company’s management team with the addition of two new board members, as Kalahari chairman Mark Hohnen was appointed as the new North River chairman and Professor Glyn Tonge joined the board as a non-executive director.
“The company has made considerable progress towards achieving its strategic objectives”, North River chief executive Luke Bryan commented. “Our aim is now to develop these assets towards production, whilst also assessing additional acquisition opportunities to further strengthen our portfolio."
Surface works are now underway at the Namib lead-zinc mine in preparation for underground exploration activity and once safety equipment and systems are in place, a full survey of the underground workings will be completed. The exploration work intends to identify the most attractive route to take the project into production.
At the Ubib tenements, which are adjacent to the Rossing and Rossing South uranium assets, North River is actively negotiating farm access contracts. Subsequently it intends to begin extensive field surveys aimed at delineating drilling targets. Early surveying and historical data has indicated the licence is prospective primarily for copper, gold and uranium.
North River said it is also continuing its work in Mozambique, through the assessment of data generated from the Mavuzi gold and uranium project - which includes a previously producing uranium mine. Other potential projects, involving the exploration for rare earth elements, gold and tantalum, are being assessed in Mozambique.
With the transformational acquisition and the commencement of work programmes, North River has invested considerably in the six-month period. As such, the company widened its pretax loss to £2.3m from £299,220 in the comparative period of the previous financial year.
The company noted that it had raised £7m through a placing in October, and it has retained a healthy cash balance at the period-end of £6.56m. The company also highlighted that the placing added new institutional investors to its shareholder base, and it maintains strong relationships with its established shareholders.
In terms of its outlook, North River said it is confident that it now has the foundations to rapidly grow and build on its position as an emerging southern-African exploration and development company.
"Utilising a strong on-ground presence in Namibia, the focus remains on fast-tracking key assets towards production, including the Koperberg, Malachite Pan and Okasewa copper projects in addition to the Namib lead-zinc project," it added.
Astaire Securities issued a note today, saying North River remains an early stage exploration business, although the portfolio of assets has changed.
The company has exited Australia, and the focus is now firmly on its new Namibian and Mozambican projects. The broker believes that, given the experience of the board and the strong balance sheet, the ingredients are in place to add value through project development and further acquisition.
http://www.proactiveinvestors.co.uk/companies/news/15076/north-river-resources-reports-on-transformational-first-half-15076.html
North River has changed its accounting reference date to December 31 from June 30, aligning the the company’s financial calendar with that of Kalahari Minerals.
"This acquisition not only provided an exciting portfolio of well-developed projects - on which £8 million had been previously invested - but also afforded the company a major strategic investor in Kalahari", North River said in its interim results statement.
North River believes that the support of and affiliation with Kalahari will strengthen its position and create further growth opportunities in the southern African mining arena. Additionally, the deal also bolstered the company’s management team with the addition of two new board members, as Kalahari chairman Mark Hohnen was appointed as the new North River chairman and Professor Glyn Tonge joined the board as a non-executive director.
“The company has made considerable progress towards achieving its strategic objectives”, North River chief executive Luke Bryan commented. “Our aim is now to develop these assets towards production, whilst also assessing additional acquisition opportunities to further strengthen our portfolio."
Surface works are now underway at the Namib lead-zinc mine in preparation for underground exploration activity and once safety equipment and systems are in place, a full survey of the underground workings will be completed. The exploration work intends to identify the most attractive route to take the project into production.
At the Ubib tenements, which are adjacent to the Rossing and Rossing South uranium assets, North River is actively negotiating farm access contracts. Subsequently it intends to begin extensive field surveys aimed at delineating drilling targets. Early surveying and historical data has indicated the licence is prospective primarily for copper, gold and uranium.
North River said it is also continuing its work in Mozambique, through the assessment of data generated from the Mavuzi gold and uranium project - which includes a previously producing uranium mine. Other potential projects, involving the exploration for rare earth elements, gold and tantalum, are being assessed in Mozambique.
With the transformational acquisition and the commencement of work programmes, North River has invested considerably in the six-month period. As such, the company widened its pretax loss to £2.3m from £299,220 in the comparative period of the previous financial year.
The company noted that it had raised £7m through a placing in October, and it has retained a healthy cash balance at the period-end of £6.56m. The company also highlighted that the placing added new institutional investors to its shareholder base, and it maintains strong relationships with its established shareholders.
In terms of its outlook, North River said it is confident that it now has the foundations to rapidly grow and build on its position as an emerging southern-African exploration and development company.
"Utilising a strong on-ground presence in Namibia, the focus remains on fast-tracking key assets towards production, including the Koperberg, Malachite Pan and Okasewa copper projects in addition to the Namib lead-zinc project," it added.
Astaire Securities issued a note today, saying North River remains an early stage exploration business, although the portfolio of assets has changed.
The company has exited Australia, and the focus is now firmly on its new Namibian and Mozambican projects. The broker believes that, given the experience of the board and the strong balance sheet, the ingredients are in place to add value through project development and further acquisition.
http://www.proactiveinvestors.co.uk/companies/news/15076/north-river-resources-reports-on-transformational-first-half-15076.html
Continental Coal inks offtake agreement with EDF Trading
South African-focussed coal company Continental Coal (ASX: CCC) has struck a key offtake agreement for coal from Continental’s production of export thermal coal product from its Vaalbank, Project X and Vlakvarkfontein Coal Mines with EDF Trading.
EDF is a leader in the international wholesale energy markets and a wholly-owned subsidiary of EDF S.A., Europe’s leading electricity producer.
Under the terms of the Heads of Agreement, EDF Trading has agreed in principle to provide Continental with a “coal loan” of US$20M, through an advance purchase of thermal coal from the Vaalbank, Project X and Vlakvarkfontein coal mines.
Continental commenced mining activities at its Vlakvarkfontein coal mine in February 2010 and both the Vaalbank and Project X mines are forecast to commence production of an aggregate 2.4mtpa of export coal in 2011.
Under the agreement EDF Trading has also agreed to an off-take agreement with Continental that will see them secure thermal coal production from these mines for an initial period of 20 years at a market API4 benchmark price FOB Richards Bay.
Continental has agreed to the issue to EDF Trading of 40m options at AUD$0.05 and 40m options at AUD$0.10 subject to any necessary shareholder approvals. The Heads of Agreement is subject to final binding legal agreement.
Continental Coal Limited managing director, Bruce Buthelezi, said "the benefits of securing funding and off take from one of the world’s leading energy traders was compelling, and something we believe will deliver a significantly beneficial outcome for the company, and most importantly, enable us to deliver first production of export coal in early 2011.”
Continental has commenced mining activities at its first South African coal mine, Vlakvarkfontein.
This follows the appointment of experienced open cast coal mining contractor Trollope Mining Services (TMS) in February 2010. Since mobilising to site less than 6 weeks ago, mining activities by TMS have continued uninterrupted with pre-stripping and other mining activities now well advanced.
During the month of March 2010 Continental achieved another key milestone in its progress towards first coal sales with the commencement of blasting operations in the initial box cut.
TMS is currently operating a two shift operation, employing 45 workers and moving in excess of 6,000 cubic metres of material per shift.
Pre-split drilling was completed during the week commencing 15 March with blasting commencing 22 March. Blasting activities focused on the main ramp access area commenced on 26 March. TMS commenced overburden blasting on 29 March.
As part of the drilling for the overburden blasting, approximately 18 metres of hard overburden was encountered and for a test, the hole was drilled through the No. 4 Coal Seam to test the coal seam thickness. A coal seam thickness of over 7.5 metres of coal was reported by the drilling contractor.
TMS will commence production blasting in the next 4-5 weeks with mining of the No. 4 coal seam using conventional open cast “rollover” methods commencing immediately. Mining operations remain on schedule and within budget and move towards first coal sales in May 2010.
Continental has confirmed that it is in further advanced discussions with four European and Asian based global energy trading companies in respect of an off-take agreement and associated funding package for the development of its 122Mt Vlakplaats Coal Mine into a 2.4mtpa open cast and underground coal mining operation.
Continental has also announced that it has executed documentation with its logistics consultants securing up to 300,000t per month of rail allocation for its planned exports of thermal coal.
This allocation matches the company’s forecast annual steady state production of export thermal coal from its Vaalbank, Project X and Vlakplaats coal mines in the coming 18-24 months.
Continental’s voluntary suspension from quotation is to continue until it is in a position to make a formal announcement in relation to the finalisation of the off-take and funding discussions for the Vlakplaats Coal Mine.
This is expected to occur on or before 9 April 2010.
http://www.proactiveinvestors.co.uk/companies/news/15075/continental-coal-inks-offtake-agreement-with-edf-trading-15075.html
EDF is a leader in the international wholesale energy markets and a wholly-owned subsidiary of EDF S.A., Europe’s leading electricity producer.
Under the terms of the Heads of Agreement, EDF Trading has agreed in principle to provide Continental with a “coal loan” of US$20M, through an advance purchase of thermal coal from the Vaalbank, Project X and Vlakvarkfontein coal mines.
Continental commenced mining activities at its Vlakvarkfontein coal mine in February 2010 and both the Vaalbank and Project X mines are forecast to commence production of an aggregate 2.4mtpa of export coal in 2011.
Under the agreement EDF Trading has also agreed to an off-take agreement with Continental that will see them secure thermal coal production from these mines for an initial period of 20 years at a market API4 benchmark price FOB Richards Bay.
Continental has agreed to the issue to EDF Trading of 40m options at AUD$0.05 and 40m options at AUD$0.10 subject to any necessary shareholder approvals. The Heads of Agreement is subject to final binding legal agreement.
Continental Coal Limited managing director, Bruce Buthelezi, said "the benefits of securing funding and off take from one of the world’s leading energy traders was compelling, and something we believe will deliver a significantly beneficial outcome for the company, and most importantly, enable us to deliver first production of export coal in early 2011.”
Continental has commenced mining activities at its first South African coal mine, Vlakvarkfontein.
This follows the appointment of experienced open cast coal mining contractor Trollope Mining Services (TMS) in February 2010. Since mobilising to site less than 6 weeks ago, mining activities by TMS have continued uninterrupted with pre-stripping and other mining activities now well advanced.
During the month of March 2010 Continental achieved another key milestone in its progress towards first coal sales with the commencement of blasting operations in the initial box cut.
TMS is currently operating a two shift operation, employing 45 workers and moving in excess of 6,000 cubic metres of material per shift.
Pre-split drilling was completed during the week commencing 15 March with blasting commencing 22 March. Blasting activities focused on the main ramp access area commenced on 26 March. TMS commenced overburden blasting on 29 March.
As part of the drilling for the overburden blasting, approximately 18 metres of hard overburden was encountered and for a test, the hole was drilled through the No. 4 Coal Seam to test the coal seam thickness. A coal seam thickness of over 7.5 metres of coal was reported by the drilling contractor.
TMS will commence production blasting in the next 4-5 weeks with mining of the No. 4 coal seam using conventional open cast “rollover” methods commencing immediately. Mining operations remain on schedule and within budget and move towards first coal sales in May 2010.
Continental has confirmed that it is in further advanced discussions with four European and Asian based global energy trading companies in respect of an off-take agreement and associated funding package for the development of its 122Mt Vlakplaats Coal Mine into a 2.4mtpa open cast and underground coal mining operation.
Continental has also announced that it has executed documentation with its logistics consultants securing up to 300,000t per month of rail allocation for its planned exports of thermal coal.
This allocation matches the company’s forecast annual steady state production of export thermal coal from its Vaalbank, Project X and Vlakplaats coal mines in the coming 18-24 months.
Continental’s voluntary suspension from quotation is to continue until it is in a position to make a formal announcement in relation to the finalisation of the off-take and funding discussions for the Vlakplaats Coal Mine.
This is expected to occur on or before 9 April 2010.
http://www.proactiveinvestors.co.uk/companies/news/15075/continental-coal-inks-offtake-agreement-with-edf-trading-15075.html
Morning news wrap: British Land, Scottish & Southern Energy, Compass Group, BG Group, BSkyB, Ofcom
In the FTSE 100, commercial property company British Land (LSE: BLND) has signed a total of 65,000 sq ft (square feet) of new lettings at its recently completed London office developments since the announcement of its third quarter results in February, with an additional 154,000 sq ft under offer.
Scottish and Southern Energy (LSE: SSE) has secured a £400m loan facility from the European Investment Bank (EIB) to help finance the development of renewable energy schemes in the UK and Ireland.
Caterer Compass Group (LSE: CPG) said that organic revenue moved from a decline of approximately 3% in the fourth quarter of 2008/09, to a decrease of 1.7% in the first quarter of 2009/10. In the second quarter, reflecting the impact of easing prior year comparative figures, organic revenue growth is expected to be around 1.5%.
Oil and gas producer BG Group (LSE: BG) has announced that it has agreed to sell Tokyo Gas 1.2 Mtpa (million tonnes per annum) of LNG for 20 years from 2015.
Water company United Utilities (LSE: UU) has signed a £30 million five year pact with Cable & Wireless Worldwide (LSE: CW) to provide converged voice and data network services to its 300 UK sites including data centres, water works and two key contact centres.
Regulator Ofcom told broadcaster BSkyB (LSE: BSY) today that it must cut its wholesale rates for Sky Sports 1 and 2 to £10.63. BSkyB today announced its intention to challenge Ofcom's conclusions before the Competition Appeal Tribunal.
In AIM, iron ore focused investor Red Rock Resources (AIM: RRR) said revenues for the six months to 31 December 2009 jumped to £0.63 million from £64,869 in H1 2008.
Copper and nickel explorer Regency Mines (AIM: RGM) posted a pre-tax profit of 388,164 for the six months to 31 December 2009 compared to an interim loss of £1,408,136 a year ago.
Mobile email and data synchronisation group Synchronica (AIM: SYNC) has agreed to acquire the IMPS instant messaging business of Colibria AS and announced a placing to raise £2.8 million.
London Mining (AIM: LOND) update the resource estimate for the Marampa and Wadi Sawawin projects. The indicated resource at Marampa now amounts to 37.8 Mt (million tonnes) grading 22.2% Fe (iron) at a 15% Fe cut-off. The indicated resource at the Wadi Sawawin project stands at 247.5 Mt at 39.8% Fe Indicated Resources at a 30% Fe cut-off.
http://www.proactiveinvestors.co.uk/companies/news/15073/morning-news-wrap-british-land-scottish-southern-energy-compass-group-bg-group-bskyb-ofcom-15073.html
Scottish and Southern Energy (LSE: SSE) has secured a £400m loan facility from the European Investment Bank (EIB) to help finance the development of renewable energy schemes in the UK and Ireland.
Caterer Compass Group (LSE: CPG) said that organic revenue moved from a decline of approximately 3% in the fourth quarter of 2008/09, to a decrease of 1.7% in the first quarter of 2009/10. In the second quarter, reflecting the impact of easing prior year comparative figures, organic revenue growth is expected to be around 1.5%.
Oil and gas producer BG Group (LSE: BG) has announced that it has agreed to sell Tokyo Gas 1.2 Mtpa (million tonnes per annum) of LNG for 20 years from 2015.
Water company United Utilities (LSE: UU) has signed a £30 million five year pact with Cable & Wireless Worldwide (LSE: CW) to provide converged voice and data network services to its 300 UK sites including data centres, water works and two key contact centres.
Regulator Ofcom told broadcaster BSkyB (LSE: BSY) today that it must cut its wholesale rates for Sky Sports 1 and 2 to £10.63. BSkyB today announced its intention to challenge Ofcom's conclusions before the Competition Appeal Tribunal.
In AIM, iron ore focused investor Red Rock Resources (AIM: RRR) said revenues for the six months to 31 December 2009 jumped to £0.63 million from £64,869 in H1 2008.
Copper and nickel explorer Regency Mines (AIM: RGM) posted a pre-tax profit of 388,164 for the six months to 31 December 2009 compared to an interim loss of £1,408,136 a year ago.
Mobile email and data synchronisation group Synchronica (AIM: SYNC) has agreed to acquire the IMPS instant messaging business of Colibria AS and announced a placing to raise £2.8 million.
London Mining (AIM: LOND) update the resource estimate for the Marampa and Wadi Sawawin projects. The indicated resource at Marampa now amounts to 37.8 Mt (million tonnes) grading 22.2% Fe (iron) at a 15% Fe cut-off. The indicated resource at the Wadi Sawawin project stands at 247.5 Mt at 39.8% Fe Indicated Resources at a 30% Fe cut-off.
http://www.proactiveinvestors.co.uk/companies/news/15073/morning-news-wrap-british-land-scottish-southern-energy-compass-group-bg-group-bskyb-ofcom-15073.html
Oxus Gold COO John Donald to retire on March 31 2010
Oxus Gold PLC (AIM: OXS) said chief operating officer John Donald will be retiring from the Oxus board with effect from 31 March 2010. He has agreed to consult for Oxus until 31 December 2010. The COO position will remain vacant pending completion of the CITIC Consortium funding it announced on 7 January 2010.
Jyoti Chandhok has resigned as company secretary with effect from 31 March 2010. Financial director Richard Wilkins will be appointed the company secretary thereafter.
On 7 January, Oxus said it had entered into conditional agreements with a consortium of Chinese investors to invest and arrange financing of a total aggregate amount of US$185 million to help develop the company's gold project in Uzbekistan and increase production to 0.3 Moz (million ounces) of gold annually after 2011.
The concert party consists of Baiyin Non-Ferrous Group Co Ltd, CITIC Construction Co Ltd and Chang Xin Yuan Su Equity Investment Fund Management LP. Baiyin and CITIC are ultimately owned and controlled by the government of the People's Republic of China. Chang Xin is a private equity fund registered in the People's Republic of China and managed by Long March Investment Consulting.
Under the terms of the financing, members of the concert party will make an investment in Oxus of US$85 million through an issue of new ordinary shares and convertible loan notes and will be granted warrants to subscribe for new shares in the company for US$20 million in return for an undertaking to arrange a further minimum of US$80 million in project finance.
The planned programme on the company’s 50% owned Amantaytau Goldfields joint venture (JV) in Uzbekistan will include the expansion of its existing open pit heap leach mining operations, the development of one of more underground mines and accelerated exploration. The Uzbek government controls the remaining 50 percent.
The proceeds are expected to allow AGF to target first production at the project for the middle of 2011 and an increase in annual production to 0.3 Moz.
The members of the concert party will subscribe to 573 million shares in Oxus at 6 pence each, which will represent a 59.7% shareholding in the company.
http://www.proactiveinvestors.co.uk/companies/news/15072/oxus-gold-coo-john-donald-to-retire-on-march-31-2010-15072.html
Jyoti Chandhok has resigned as company secretary with effect from 31 March 2010. Financial director Richard Wilkins will be appointed the company secretary thereafter.
On 7 January, Oxus said it had entered into conditional agreements with a consortium of Chinese investors to invest and arrange financing of a total aggregate amount of US$185 million to help develop the company's gold project in Uzbekistan and increase production to 0.3 Moz (million ounces) of gold annually after 2011.
The concert party consists of Baiyin Non-Ferrous Group Co Ltd, CITIC Construction Co Ltd and Chang Xin Yuan Su Equity Investment Fund Management LP. Baiyin and CITIC are ultimately owned and controlled by the government of the People's Republic of China. Chang Xin is a private equity fund registered in the People's Republic of China and managed by Long March Investment Consulting.
Under the terms of the financing, members of the concert party will make an investment in Oxus of US$85 million through an issue of new ordinary shares and convertible loan notes and will be granted warrants to subscribe for new shares in the company for US$20 million in return for an undertaking to arrange a further minimum of US$80 million in project finance.
The planned programme on the company’s 50% owned Amantaytau Goldfields joint venture (JV) in Uzbekistan will include the expansion of its existing open pit heap leach mining operations, the development of one of more underground mines and accelerated exploration. The Uzbek government controls the remaining 50 percent.
The proceeds are expected to allow AGF to target first production at the project for the middle of 2011 and an increase in annual production to 0.3 Moz.
The members of the concert party will subscribe to 573 million shares in Oxus at 6 pence each, which will represent a 59.7% shareholding in the company.
http://www.proactiveinvestors.co.uk/companies/news/15072/oxus-gold-coo-john-donald-to-retire-on-march-31-2010-15072.html
FTSE 100 seen 0.1% higher after Dow Jones, S&P 500 and NASDAQ close flat
The FTSE 100 is seen 0.1% higher today after shedding 0.4% on Tuesday. Global equity markets have not shown much movement so far this week as investors are being cautious ahead of Friday’s key US employment data.
US stocks didn’t show much movement yesterday. The Dow Jones Industrial Average rose 0.1%, the broader S&P 500 index flat and the technology heavy NASDAQ composite added 0.25%.
Asian stocks were lower. Hong Kong’s Hang Seng was down 0.15%, China’s Shanghai Composite Index shed 0.7%, Japan’s benchmark Nikkei 225 index was flat, South Korea’s KOSPI retreated 0.4% and Australia’s S&P/ASX 200 dropped 0.85%.
Just three FTSE 100 constituents added 1% or more. Oil and gas engineering firm Amec (LSE: AMEC) led the blue chips, advancing 3.2%. Insurer Legal & General (LSE: LGEN) followed with a 1.1% gain, while asset management firm Schroders (LSE: SDR) tacked on 1%.
Satellite communications company Inmarsat (LSE: ISAT) was at the bottom of the pile with a 5.6% decline. Specialist banking group Investec (LSE: INVP) lost nearly 4%, Royal Bank of Scotland (LSE: RBS) dropped 3.4% and insurer Standard Life (LSE: SL) slid 3.1%. Part-nationalised bank Lloyds (LSE: LLOY) was down 3%.
Commodities
Oil prices were unmoved. May Brent Crude held steady at US$81.29/barrel, while US light, sweet crude was at US$82.33/barrel.
Precious metals also were at about the same level as yesterday. Gold returned to US$1,108/oz, while silver and platinum inched higher to US$17.40/oz and US$1,633/oz respectively.
Base metals were mixed as while copper and zinc slid to US$3.50/lb and US$1.04/lb, nickel improved to US$11.01/lb.
Investors will be looking to updates on the Chicago PMI (Purchasing Managers Index), New York ISM and US factory orders, which are due today.
http://www.proactiveinvestors.co.uk/companies/news/15070/ftse-100-seen-01-higher-after-dow-jones-sp-500-and-nasdaq-close-flat-15070.html
US stocks didn’t show much movement yesterday. The Dow Jones Industrial Average rose 0.1%, the broader S&P 500 index flat and the technology heavy NASDAQ composite added 0.25%.
Asian stocks were lower. Hong Kong’s Hang Seng was down 0.15%, China’s Shanghai Composite Index shed 0.7%, Japan’s benchmark Nikkei 225 index was flat, South Korea’s KOSPI retreated 0.4% and Australia’s S&P/ASX 200 dropped 0.85%.
Just three FTSE 100 constituents added 1% or more. Oil and gas engineering firm Amec (LSE: AMEC) led the blue chips, advancing 3.2%. Insurer Legal & General (LSE: LGEN) followed with a 1.1% gain, while asset management firm Schroders (LSE: SDR) tacked on 1%.
Satellite communications company Inmarsat (LSE: ISAT) was at the bottom of the pile with a 5.6% decline. Specialist banking group Investec (LSE: INVP) lost nearly 4%, Royal Bank of Scotland (LSE: RBS) dropped 3.4% and insurer Standard Life (LSE: SL) slid 3.1%. Part-nationalised bank Lloyds (LSE: LLOY) was down 3%.
Commodities
Oil prices were unmoved. May Brent Crude held steady at US$81.29/barrel, while US light, sweet crude was at US$82.33/barrel.
Precious metals also were at about the same level as yesterday. Gold returned to US$1,108/oz, while silver and platinum inched higher to US$17.40/oz and US$1,633/oz respectively.
Base metals were mixed as while copper and zinc slid to US$3.50/lb and US$1.04/lb, nickel improved to US$11.01/lb.
Investors will be looking to updates on the Chicago PMI (Purchasing Managers Index), New York ISM and US factory orders, which are due today.
http://www.proactiveinvestors.co.uk/companies/news/15070/ftse-100-seen-01-higher-after-dow-jones-sp-500-and-nasdaq-close-flat-15070.html
ZincOx Resources confirm major shareholder support, over 50% against rebellious minority
The board of ZincOx Resources (AIM: ZOX) has found reassurance among its major shareholders following a recent general meeting requisition to oust six directors by two minor shareholders with a combined 5% stake in the company. Today, Zincox said that it has received written confirmations representing more than 50% of the company’s issued shares.
The rebel shareholders propose the removal of six of the company’s current directors, to be replaced by two new directors, Russ Robinson and Barry Hamilton.
On 16 March 2010, the company received notice of requisition for a general meeting from two of its shareholders which together hold 5% of its issued share capital. In a separate statement, the shareholders identified themselves as Aldersgate Investment Managers and US SDR LLC.
This morning, the company said that the information has been passed to the requisitioning shareholders, and if the requisition is not withdrawn, it is expected that a general meeting will be held on Friday 23 April.
ZincOx's main projects are the Jabali zinc oxide deposit in Yemen and the development of a zinc reclamation operation in North America, the Ohio Recycling Plant. The planned ORP is the company’s most advanced recycling project which will process electric arc furnace dust (EAFD), a by-product from steel recycling processes, to produce zinc. According to ZincOx, EAFD contains about four times more zinc than the average natural deposit. EAFD generally contains between 18% and 25% zinc.
Russ Robinson is the principal owner of US SDR LLC, which was founded in 2006 to build and operate Waelz Kiln processing plants to recycle EAFD to produce zinc oxide and waelz iron product. US SDR sold its Waelz Kiln plant in Alabama in October 2009.
The six directors named by the minority shareholders consist of executive chairman Andrew Woollett, managing director Peter Wynter Bee, finance director Simon Hall, technical and production director Jacques Dewalens, project development director Simon Mulholland and non-executive director Gilles Masson.
In terms of shareholdings, Aldersgate is ZincOx’s seventh largest significant shareholder with approximately 4.4% of the company. ZincOx’s three largest shareholders are Heogh Capital Partners with 12.8%, M&G Securities with 9.1% and Sloane Robinson Investment with 9.5%. The company’s other significant shareholders include Sisu (4.9%), JP Morgan (6%) and Teck (7.1%).
http://www.proactiveinvestors.co.uk/companies/news/15069/zincox-resources-confirm-major-shareholder-support-over-50-against-rebellious-minority-15069.html
The rebel shareholders propose the removal of six of the company’s current directors, to be replaced by two new directors, Russ Robinson and Barry Hamilton.
On 16 March 2010, the company received notice of requisition for a general meeting from two of its shareholders which together hold 5% of its issued share capital. In a separate statement, the shareholders identified themselves as Aldersgate Investment Managers and US SDR LLC.
This morning, the company said that the information has been passed to the requisitioning shareholders, and if the requisition is not withdrawn, it is expected that a general meeting will be held on Friday 23 April.
ZincOx's main projects are the Jabali zinc oxide deposit in Yemen and the development of a zinc reclamation operation in North America, the Ohio Recycling Plant. The planned ORP is the company’s most advanced recycling project which will process electric arc furnace dust (EAFD), a by-product from steel recycling processes, to produce zinc. According to ZincOx, EAFD contains about four times more zinc than the average natural deposit. EAFD generally contains between 18% and 25% zinc.
Russ Robinson is the principal owner of US SDR LLC, which was founded in 2006 to build and operate Waelz Kiln processing plants to recycle EAFD to produce zinc oxide and waelz iron product. US SDR sold its Waelz Kiln plant in Alabama in October 2009.
The six directors named by the minority shareholders consist of executive chairman Andrew Woollett, managing director Peter Wynter Bee, finance director Simon Hall, technical and production director Jacques Dewalens, project development director Simon Mulholland and non-executive director Gilles Masson.
In terms of shareholdings, Aldersgate is ZincOx’s seventh largest significant shareholder with approximately 4.4% of the company. ZincOx’s three largest shareholders are Heogh Capital Partners with 12.8%, M&G Securities with 9.1% and Sloane Robinson Investment with 9.5%. The company’s other significant shareholders include Sisu (4.9%), JP Morgan (6%) and Teck (7.1%).
http://www.proactiveinvestors.co.uk/companies/news/15069/zincox-resources-confirm-major-shareholder-support-over-50-against-rebellious-minority-15069.html
Norseman Gold director David Steinepreis buys 24,100 shares in company
Norseman Gold PLC (AIM, ASX: NGL) said it was notified that non-executive director David Steinepreis last week bought 24,100 shares in the company on the market for a total of A$16,972, and he now holds 4,337,957 shares in Norseman. This follows Steinepreis’s purchase of 56,750 shares, also last week , which the group announced two days ago.
The company currently has three operating mines in Western Australia: Bullen, Harlequin and the developing OK Decline, with two more potential mines being explored and developed to fulfil the company’s strategy to fill its treatment plant to capacity, which is currently 60% utilized.
The company earlier this month reported progress from its fourth potential mine, North Royal, where the first round drilling on the southern end of the pit has returned promising results particularly around a footwall structure with follow-up extensional and infill drilling will commence this month. Mining is expected to commence by the last quarter of the 2010 calendar year.
Surface drilling operations that have recently commenced at the fifth potential mine, Crown Reef, intersected a structure in the expected position in the initial drill holes with assay results currently pending.
The Norseman gold project is located in the Eastern Goldfields of Western Australia in the highly prospective Norseman-Wiluna greenstone belt, 725 kilometres east of Perth and 186 kilometres from Kalgoorlie.
Currently, it has a total resource inventory of 20.0 million tons at a grade of 5.5 grams per ton gold for 3.7 million ounces of gold. The tenements cover a 1,614 sq km area centred on the Norseman Township. The landholding comprises 179 contiguous tenements consisting of 13 exploration licences, 106 mining licences, 45 prospecting licences, 15 miscellaneous licences and 29 mining lease applications.
http://www.proactiveinvestors.co.uk/companies/news/15068/norseman-gold-director-david-steinepreis-buys-24100-shares-in-company-15068.html
The company currently has three operating mines in Western Australia: Bullen, Harlequin and the developing OK Decline, with two more potential mines being explored and developed to fulfil the company’s strategy to fill its treatment plant to capacity, which is currently 60% utilized.
The company earlier this month reported progress from its fourth potential mine, North Royal, where the first round drilling on the southern end of the pit has returned promising results particularly around a footwall structure with follow-up extensional and infill drilling will commence this month. Mining is expected to commence by the last quarter of the 2010 calendar year.
Surface drilling operations that have recently commenced at the fifth potential mine, Crown Reef, intersected a structure in the expected position in the initial drill holes with assay results currently pending.
The Norseman gold project is located in the Eastern Goldfields of Western Australia in the highly prospective Norseman-Wiluna greenstone belt, 725 kilometres east of Perth and 186 kilometres from Kalgoorlie.
Currently, it has a total resource inventory of 20.0 million tons at a grade of 5.5 grams per ton gold for 3.7 million ounces of gold. The tenements cover a 1,614 sq km area centred on the Norseman Township. The landholding comprises 179 contiguous tenements consisting of 13 exploration licences, 106 mining licences, 45 prospecting licences, 15 miscellaneous licences and 29 mining lease applications.
http://www.proactiveinvestors.co.uk/companies/news/15068/norseman-gold-director-david-steinepreis-buys-24100-shares-in-company-15068.html
Western banks step back to the plate for European Nickel but Chinese finance still on the table
European Nickel (AIM, PLUS: ENK) is certainly juggling quite a few nickel balls at the moment. The company is progressing towards a merger with fellow nickel laterite specialist, Rusina Mining, and this morning confirmed that it had extended financing discussions for its key Çaldağ project which contains a JORC proven reserve of 33.2Mt at 1.13% Ni, for a nickel content of 375,000 tonnes.
A “Financing Framework Agreement” signed in February 2009 with Jiangxi Rare Earth and Rare Metals Tungsten Group Company Limited (“JXTC”) and China Tianchen Engineering Corporation (“TCC”) has been extended - by mutual agreement - for six weeks until 14 May 2010. An associated BHP Billiton Offtake Termination Agreement, announced in July 2009 has also been extended.
“This extension will allow extra time for the Chinese export credit agency to provide a Letter of Intent and for the Industrial and Commercial Bank of China to prepare a term sheet for the US$350 million of project finance required for the construction of the Çaldağ project in Turkey,” European Nickel stated.
JXTC are a large state-owned enterprise based in Jiangxi province, and are building the world's first dedicated MHP nickel refinery, due to come on-stream this year. Part of the original agreement included JXTC purchasing 20% of the Çaldağ project for US$20 million, which is “nearing completion, subject to finalisation of the debt financing”.
Simon Purkiss, Managing Director, said “We have worked hard with our Chinese partners to progress a Chinese finance solution at a time when conventional Western Bank project finance was not available. This extension recognises the relationships we have built in China and their continued willingness to finance the Çaldağ project.”
Purkiss however went on to report that Western banks, who failed to secure financing for the project once before, had returned to the table and are now in contention to supply project finance, hence the relatively short extension to the financing framework agreement with JXTC and TCC. “...we have kept [the financing extension] relatively short as we now have the strong prospect of an alternative source of project finance from Western banks.”
If this wasn’t enough for investors to digest, European Nickel also highlighted recent new tax incentives in Turkey for largest scale industrial projects, which the company estimates would substantially increase the net present value of Çaldağ (applying a 10% discount rate) to US$285 million from US$207 million.
“The incentives will be available to the Çaldağ project and include a reduction in employee social security payments and a reduction in the corporate tax rate from 20% to 4% until a saving equal to 50% of the fixed investment has been achieved.”
http://www.proactiveinvestors.co.uk/companies/news/15067/western-banks-step-back-to-the-plate-for-european-nickel-but-chinese-finance-still-on-the-table-15067.html
A “Financing Framework Agreement” signed in February 2009 with Jiangxi Rare Earth and Rare Metals Tungsten Group Company Limited (“JXTC”) and China Tianchen Engineering Corporation (“TCC”) has been extended - by mutual agreement - for six weeks until 14 May 2010. An associated BHP Billiton Offtake Termination Agreement, announced in July 2009 has also been extended.
“This extension will allow extra time for the Chinese export credit agency to provide a Letter of Intent and for the Industrial and Commercial Bank of China to prepare a term sheet for the US$350 million of project finance required for the construction of the Çaldağ project in Turkey,” European Nickel stated.
JXTC are a large state-owned enterprise based in Jiangxi province, and are building the world's first dedicated MHP nickel refinery, due to come on-stream this year. Part of the original agreement included JXTC purchasing 20% of the Çaldağ project for US$20 million, which is “nearing completion, subject to finalisation of the debt financing”.
Simon Purkiss, Managing Director, said “We have worked hard with our Chinese partners to progress a Chinese finance solution at a time when conventional Western Bank project finance was not available. This extension recognises the relationships we have built in China and their continued willingness to finance the Çaldağ project.”
Purkiss however went on to report that Western banks, who failed to secure financing for the project once before, had returned to the table and are now in contention to supply project finance, hence the relatively short extension to the financing framework agreement with JXTC and TCC. “...we have kept [the financing extension] relatively short as we now have the strong prospect of an alternative source of project finance from Western banks.”
If this wasn’t enough for investors to digest, European Nickel also highlighted recent new tax incentives in Turkey for largest scale industrial projects, which the company estimates would substantially increase the net present value of Çaldağ (applying a 10% discount rate) to US$285 million from US$207 million.
“The incentives will be available to the Çaldağ project and include a reduction in employee social security payments and a reduction in the corporate tax rate from 20% to 4% until a saving equal to 50% of the fixed investment has been achieved.”
http://www.proactiveinvestors.co.uk/companies/news/15067/western-banks-step-back-to-the-plate-for-european-nickel-but-chinese-finance-still-on-the-table-15067.html
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