Discovery Metals (AIM: DME; ASX/BSE: DML) has received Scoping Study results from Snowden for an underground mine based on a portion of the currently defined Zeta Mineral Resource and deposit at the Boseto Copper Project on a standalone basis, that confirms the economic viability of underground mining operations at Zeta.
The underground mine Scoping Study has been progressed in parallel with the Boseto Copper Project Bankable Feasibility Study. The completion and commencement of the progressive release of the results of this BFS are imminent.
The BFS is based on commencing production at Boseto solely via open cut mining methods with the vast majority of exploration, engineering and expenditure on Boseto to date has been undertaken to support the open cut project.
DML plans to add significant additional tonnages of ore to the production mix by adopting conventional underground mining methods, the Zeta deposit was chosen as the focus for the study because it was the only deposit at Boseto for which Discovery Metals had sufficient information available at the time the study commenced.
The scoping study highlighted the robust economics of an underground mine at Zeta, with an average base case ore production of 1.2Mtpa at 1.4% Cu and 19.2 g/t Ag over an 8 year underground mine life, for average annual production (contained metal in concentrate basis) of 15,300t copper and 480,000oz silver.
Further, the mine is estimated to have a low capital cost of US$10 million as incremental outlay to currently proposed Boseto project scope.
The project would have an NPV of US$61 million using a US$3.00/lb Cu price.
“The study shows that a Zeta underground mine has the potential to add significant value to shareholders through increased operational flexibility and optionality in relation to the copper price, production volumes and extensions to mine life," Discovery Metals’ Managing Director, Brad Sampson said today.
He said the scoping study has shown that the mine has a very low incremental development capital cost with very rapid payback.
"We envisage that the Zeta underground proposal will improve in the future because at this stage the scoping study manager (Snowden) has used conservative estimates throughout. We will refine the grade and cost information as we proceed further with underground studies at Zeta and other areas at Boseto”.
The Company believes that the study results may be applied to other portions of the mineralisation in the greater Boseto area where exploration may confirm mineralization and resources at depth, similar to the Zeta deposit, for example at the nearby Plutus Prospect.
The area of Zeta on which the current study is based is only a small portion of the overall Zeta mineralisation.
For example, the maximum vertical depth scheduled for production in the study is 360m. The Zeta deposit is open below this depth, however, and exploration of this deeper portion is currently under way to over 500m vertical depth.
A Prefeasibility Study for the Zeta Underground has commenced and is scheduled for completion during September 2010. It will involve scenarios for integrating the open cut mining operations.
http://www.proactiveinvestors.co.uk/companies/news/14960/discovery-metals-boseto-copper-project-economics-improved-by-zeta-results-14960.html
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Monday, 29 March 2010
Renovo Group completes recruitment for scar tissue regeneration drug trial
Renovo Group (LSE: RNVO) reported another milestone in the development of its Juvista - a drug which reduces scarring by enhancing tissue regeneration – announcing that it had now completed recruitment of patients for the crucial EU Phase III trial.
The Phase III trial, which is on course to report in the first half of 2011, recruited more than 350 patients from 10 countries, including Italy, Spain, France, UK and USA.
In 2007, Renovo signed an $825m licensing agreement with FTSE 100-quoted biopharmaceutical firm Shire Pharmaceuticals to develop and commercialise Juvista in every country in the world, except those in the EU (the rights to which have been retained by Renovo).
Under the 2007 deal, Renovo has already received an upfront payment of USD$75m and an equity investment of USD$50m. Contingent on the successful development and commercialisation of Juvista, Renovo will become eligible for further milestone payments of up to $700m as well as escalating royalties on sales.
The two companies revised terms of the original agreement last month. Shire will retain its right to sell Juvista in the United States, Canada and Mexico, but will no longer maintain the right for other parts of the world outside of the European Union (EU). The original financial terms of the agreement have remained intact, with the exception that Shire agreed a new US$5 million milestone payment to Renovo on commencement of a clinical trial by Shire, but after the first EU Phase III trial reports.
The primary endpoint of the Phase III trial is a Clinical Panel assessment of standardised photographs at 12 months after surgery, assessed for scar improvement by the “Global Scar Comparison Scale”, Renovo stated this morning.
“Following the last patient visit at 12 months post surgery, the standardised photographs will be prepared, scored by an independent Clinical Panel and the data analysed, which means that Renovo is on schedule to report the results of this trial in H1 2011, as previously guided.”
Juvista is aimed principally at patients undergoing surgery, or who have very recently undergone surgery, Renovo describes Juvista is a “first-in-class pharmaceutical product candidate” that is aimed at improving the subsequent appearance of surgical scars.
There are approximately 42 million surgical procedures every year in the US, and a further 41.8 million in the European Union, yet there is currently no marketed pharmaceutical in the US or Europe for the prevention and reduction of scarring in skin - hence Renovo believes that there are multi-billion dollar markets in the EU and US for Juvista.
The Phase III trial, which is on course to report in the first half of 2011, recruited more than 350 patients from 10 countries, including Italy, Spain, France, UK and USA.
In 2007, Renovo signed an $825m licensing agreement with FTSE 100-quoted biopharmaceutical firm Shire Pharmaceuticals to develop and commercialise Juvista in every country in the world, except those in the EU (the rights to which have been retained by Renovo).
Under the 2007 deal, Renovo has already received an upfront payment of USD$75m and an equity investment of USD$50m. Contingent on the successful development and commercialisation of Juvista, Renovo will become eligible for further milestone payments of up to $700m as well as escalating royalties on sales.
The two companies revised terms of the original agreement last month. Shire will retain its right to sell Juvista in the United States, Canada and Mexico, but will no longer maintain the right for other parts of the world outside of the European Union (EU). The original financial terms of the agreement have remained intact, with the exception that Shire agreed a new US$5 million milestone payment to Renovo on commencement of a clinical trial by Shire, but after the first EU Phase III trial reports.
The primary endpoint of the Phase III trial is a Clinical Panel assessment of standardised photographs at 12 months after surgery, assessed for scar improvement by the “Global Scar Comparison Scale”, Renovo stated this morning.
“Following the last patient visit at 12 months post surgery, the standardised photographs will be prepared, scored by an independent Clinical Panel and the data analysed, which means that Renovo is on schedule to report the results of this trial in H1 2011, as previously guided.”
Juvista is aimed principally at patients undergoing surgery, or who have very recently undergone surgery, Renovo describes Juvista is a “first-in-class pharmaceutical product candidate” that is aimed at improving the subsequent appearance of surgical scars.
There are approximately 42 million surgical procedures every year in the US, and a further 41.8 million in the European Union, yet there is currently no marketed pharmaceutical in the US or Europe for the prevention and reduction of scarring in skin - hence Renovo believes that there are multi-billion dollar markets in the EU and US for Juvista.
Week ahead: Amec, Kazkahmys, JKX Oil & Gas, Savills, Booker Group, Mothercare, Lamprell, Afren
The FTSE 100 is currently projected to open flat on Monday afe5tr rising 1% this week. The next week will be shortened by the Good Friday holiday on Friday, when key US employment data is due. This week will also see a number of manufacturing and business activity updates in both the UK and the US including Chicago PMI (Purchasing Managers Index), which is due out in the US on Wednesday.
On Monday, oil and gas producer and explorer Afren (LSE: AFR), peer Dana Petroleum (LSE: DNX) and oil and gas engineer Lamprell (LSE: LAM) will release their final results.
Human tissue research company Asterand (LSE: ATD), oil and gas producer JKX Oil & Gas (LSE: JKX) and copper miner Kazakhmys (LSE: KAZ) will report on their finals on Tuesday, while defence contractor Cobham (LSE: COB) will release its annual report.
Oil and gas engineering firm Amec (LSE: AMEC), construction services company Carillion (LSE: CLLN) and commodity asset development company Mercator Gold (AIM: MCR) will release their annual reports on Wednesday, while caterer Compass Group (LSE: CPG), dairy products company Dairy Crest Group (LSE: DCG), transport company FirstGroup (LSE: FGP) and agri-processor Tate & Lyle (LSE: TATE) will release trading announcements.
On Thursday, retailer Mothercare (LSE: MTC), wholesale operator Booker Group (LSE: BOK) and engineering company IMI (LSE: IMI) will update the markets on their trading, while IMI, IT consultancy Logica (LSE: LOG) and property company Savills (LSE: SVS) will release annual reports. No corporate or economic data is due out in the UK on Friday, which will be a bank holiday.
Investors will be looking to US personal spending and income updates on Monday, US and EU consumer confidence data on Tuesday, Chicago PMI Index and US factory orders on Wednesday, ISM manufacturing in the US and PMI manufacturing data in the EU and Germany on Thursday and Friday’s key US non-farm payrolls update along with unemployment rate and producer price index.
Next week’s domestic data will include balance of payments, current account and GDP quarterly national accounts figures on Tuesday and PMI manufacturing update on Thursday.
Asof Sunday afternoon, the FTSE 100, the Dow Jones Industrial Average and the S&P 500 index are projected to open flat on Monday.
http://www.proactiveinvestors.co.uk/companies/news/14956/week-ahead-amec-kazkahmys-jkx-oil-gas-savills-booker-group-mothercare-lamprell-afren-14956.html
On Monday, oil and gas producer and explorer Afren (LSE: AFR), peer Dana Petroleum (LSE: DNX) and oil and gas engineer Lamprell (LSE: LAM) will release their final results.
Human tissue research company Asterand (LSE: ATD), oil and gas producer JKX Oil & Gas (LSE: JKX) and copper miner Kazakhmys (LSE: KAZ) will report on their finals on Tuesday, while defence contractor Cobham (LSE: COB) will release its annual report.
Oil and gas engineering firm Amec (LSE: AMEC), construction services company Carillion (LSE: CLLN) and commodity asset development company Mercator Gold (AIM: MCR) will release their annual reports on Wednesday, while caterer Compass Group (LSE: CPG), dairy products company Dairy Crest Group (LSE: DCG), transport company FirstGroup (LSE: FGP) and agri-processor Tate & Lyle (LSE: TATE) will release trading announcements.
On Thursday, retailer Mothercare (LSE: MTC), wholesale operator Booker Group (LSE: BOK) and engineering company IMI (LSE: IMI) will update the markets on their trading, while IMI, IT consultancy Logica (LSE: LOG) and property company Savills (LSE: SVS) will release annual reports. No corporate or economic data is due out in the UK on Friday, which will be a bank holiday.
Investors will be looking to US personal spending and income updates on Monday, US and EU consumer confidence data on Tuesday, Chicago PMI Index and US factory orders on Wednesday, ISM manufacturing in the US and PMI manufacturing data in the EU and Germany on Thursday and Friday’s key US non-farm payrolls update along with unemployment rate and producer price index.
Next week’s domestic data will include balance of payments, current account and GDP quarterly national accounts figures on Tuesday and PMI manufacturing update on Thursday.
Asof Sunday afternoon, the FTSE 100, the Dow Jones Industrial Average and the S&P 500 index are projected to open flat on Monday.
http://www.proactiveinvestors.co.uk/companies/news/14956/week-ahead-amec-kazkahmys-jkx-oil-gas-savills-booker-group-mothercare-lamprell-afren-14956.html
Weekend news wrap: second strike at British Airways, budget disappoints UK voters
A recent BBC poll showed that Labour is more trusted to run the economy with current Prime Minister Gordon Brown and Chancellor Alistair Darling securing 33% against 27% for Conservative leader David Cameron and shadow Chancellor George Osborne. This was the first public opinion poll of this kind following Wednesday’s budget speech by Darling, who has pledged to cut the budget deficit in half in four years via tax hikes and spending cuts. An online poll by YouGov for the Sunday Times showed that 51% of responders were not happy with the budget, while another poll demonstrated that 24% of voters were less likely to go for Labour after Darling’s budget.
The prospect of a hung parliament has been weighing on the equity markets, raising questions about the UK’s ability to solve the problem with its budget deficit, which is set to balloon to £178 billion this year. Last week, opinion polls by both the News of the World newspaper and the Sunday Times reported that 38% of voters supported Conservatives over 32% and 31% for Labour respectively.
Meanwhile, the Conservatives have raised more doubt about their ability to cut the deficit after Cameron pledged to preserve some £4 billion worth of benefits for the elderly.
Airline British Airways (LSE: BAY) got hit by a second round of strikes following last week’s three day strike of its cabin crew staff, which was estimated to cost BA some £30 million per day. More than 90 flights were cancelled yesterday with about two thirds of cabin crew staff reporting for work at the Heathrow airport in London. Union said more strikes were likely after Easter if the sides reach no deal over BA’s reductions of cabin crew on its flights. According to estimates, BA’s total losses from the two strikes could amount to £100 million.
It was announced this week that the Times and the Sunday Times, which both belong to Rupert Murdoch’s News Corp, will soon start charging readers for access to their websites. Murdoch made the news last year, when he launched an attack on Google was depriving it of revenues by including News Corp’s content on the Google News. News Corp’s other two publications, the Sun and News of the World, could also start charging readers for content.
European markets and the euro got a little bit of a relief at the end of this week after EU leaders agreed on a loan up to €22 billion to Greece jointly with the IMF in the event that the country is unable to raise enough money in the market. The deal, however, did not improve the long-term outlook for Greece’s debt and the gains in the euro and European stock markets were limited.
http://www.proactiveinvestors.co.uk/companies/news/14955/weekend-news-wrap-second-strike-at-british-airways-budget-disappoints-uk-voters-14955.html
The prospect of a hung parliament has been weighing on the equity markets, raising questions about the UK’s ability to solve the problem with its budget deficit, which is set to balloon to £178 billion this year. Last week, opinion polls by both the News of the World newspaper and the Sunday Times reported that 38% of voters supported Conservatives over 32% and 31% for Labour respectively.
Meanwhile, the Conservatives have raised more doubt about their ability to cut the deficit after Cameron pledged to preserve some £4 billion worth of benefits for the elderly.
Airline British Airways (LSE: BAY) got hit by a second round of strikes following last week’s three day strike of its cabin crew staff, which was estimated to cost BA some £30 million per day. More than 90 flights were cancelled yesterday with about two thirds of cabin crew staff reporting for work at the Heathrow airport in London. Union said more strikes were likely after Easter if the sides reach no deal over BA’s reductions of cabin crew on its flights. According to estimates, BA’s total losses from the two strikes could amount to £100 million.
It was announced this week that the Times and the Sunday Times, which both belong to Rupert Murdoch’s News Corp, will soon start charging readers for access to their websites. Murdoch made the news last year, when he launched an attack on Google was depriving it of revenues by including News Corp’s content on the Google News. News Corp’s other two publications, the Sun and News of the World, could also start charging readers for content.
European markets and the euro got a little bit of a relief at the end of this week after EU leaders agreed on a loan up to €22 billion to Greece jointly with the IMF in the event that the country is unable to raise enough money in the market. The deal, however, did not improve the long-term outlook for Greece’s debt and the gains in the euro and European stock markets were limited.
http://www.proactiveinvestors.co.uk/companies/news/14955/weekend-news-wrap-second-strike-at-british-airways-budget-disappoints-uk-voters-14955.html
Weekly news wrap: BG Group, Soco Intl, TUI Travel, Ferrexpo, Sainsbury's, Aggreko, AngloGold
AngloGold Ashanti (LSE, ASX: AGG; NYSE: AU) has entered into a definitive JV (joint venture) agreement with l'Office des Mines d'Or de Kilo-Moto (OKIMO) over the development of the Ashanti Goldfields Kilo (AGK) project in the Democratic Republic of Congo (DRC) and the transfer of the exploitation permits to AGK.
Temporary power provider Aggreko (LSE: AGK) has signed a contract with the national utility company of Côte d'Ivoire to provide 70 MW (megawatt) of temporary power fuelled by natural gas worth some €35 million, making it its largest gas fuelled project to date.
Silver producer and FTSE 250 constituent Hochschild Mining (LSE: HOC) reported full-year results which showed a production rise of 8% to 28.2 million attributable silver equivalent ounces, slightly above the group's 28 million target for the period.
FTSE 250 oil and gas producer Soco International (LSE: SIA) said 2009 results have been the strongest to date as pretax profit from continuing operations rose from US$37.4 million to US$93.5 million while revenues more than doubled from US$55.34 million to US$131 million. The group expects 2010 to be an eventful year with the possibility of the expansion of reserves over the course of this year’s drilling programme.
BG Group (LSE: BG) has signed a Liquefied Natural Gas (LNG) sales contract with state-owned China National Offshore Oil Corporation (CNOOC), concluding negotiations announced in May 2009, for the supply of 3.6 million tonnes of LNG per annum (mtpa) over a 20-year period. The deal is reported to be worth between US$40-80bn depending on varying oil price assumptions.
Britain’s third largest supermarket chain, Sainsbury's (LSE: SBRY) said its fourth quarter performance has completed a strong year, with total sales up 7.1% and 4.8% higher on a like-for-like basis during the three-month period. Chief executive Justin King said the company has delivered a good performance, in line with its expectations.
In a pre-close trading update ahead of its H1 results, TUI Travel (LSE: TT) said it is seeing a significant recovery in consumer demand, which is resulting in strong trading across all open seasons.
Full year results from mid-tier iron ore producer Ferrexpo (LSE:FXPO) helped lift the company’s share price 4.7% this morning – the third best performance in the FTSE 250. Shares in the Ukraine focused company have delivered a solid performance in 2010, rising more than 50% as investors begin to price in a recovery in demand for iron ore and speculation of significantly higher contract prices this year.
http://www.proactiveinvestors.co.uk/companies/news/14947/weekly-news-wrap-bg-group-soco-intl-tui-travel-ferrexpo-sainsburys-aggreko-anglogold-14947.html
Temporary power provider Aggreko (LSE: AGK) has signed a contract with the national utility company of Côte d'Ivoire to provide 70 MW (megawatt) of temporary power fuelled by natural gas worth some €35 million, making it its largest gas fuelled project to date.
Silver producer and FTSE 250 constituent Hochschild Mining (LSE: HOC) reported full-year results which showed a production rise of 8% to 28.2 million attributable silver equivalent ounces, slightly above the group's 28 million target for the period.
FTSE 250 oil and gas producer Soco International (LSE: SIA) said 2009 results have been the strongest to date as pretax profit from continuing operations rose from US$37.4 million to US$93.5 million while revenues more than doubled from US$55.34 million to US$131 million. The group expects 2010 to be an eventful year with the possibility of the expansion of reserves over the course of this year’s drilling programme.
BG Group (LSE: BG) has signed a Liquefied Natural Gas (LNG) sales contract with state-owned China National Offshore Oil Corporation (CNOOC), concluding negotiations announced in May 2009, for the supply of 3.6 million tonnes of LNG per annum (mtpa) over a 20-year period. The deal is reported to be worth between US$40-80bn depending on varying oil price assumptions.
Britain’s third largest supermarket chain, Sainsbury's (LSE: SBRY) said its fourth quarter performance has completed a strong year, with total sales up 7.1% and 4.8% higher on a like-for-like basis during the three-month period. Chief executive Justin King said the company has delivered a good performance, in line with its expectations.
In a pre-close trading update ahead of its H1 results, TUI Travel (LSE: TT) said it is seeing a significant recovery in consumer demand, which is resulting in strong trading across all open seasons.
Full year results from mid-tier iron ore producer Ferrexpo (LSE:FXPO) helped lift the company’s share price 4.7% this morning – the third best performance in the FTSE 250. Shares in the Ukraine focused company have delivered a solid performance in 2010, rising more than 50% as investors begin to price in a recovery in demand for iron ore and speculation of significantly higher contract prices this year.
http://www.proactiveinvestors.co.uk/companies/news/14947/weekly-news-wrap-bg-group-soco-intl-tui-travel-ferrexpo-sainsburys-aggreko-anglogold-14947.html
Gold returns to $1,100 after EU leaders agree on Greek bailout
Gold recovered after falling for the better part of the week on weakness in the euro amid uncertainty over Greece’s fiscal situation coupled with rating agency Fitch’s downgrade of Portugal’s sovereign rating.
The outlook for Greece’s debt crisis seemed to be worsening by the day during the better part of the week as EU leaders were nowhere near an agreement on a bailout package for the country despite repeated calls from the European Commission to find common ground on aid for the troubled country. Late last week, President of the European Commission Jose Manuel Barroso called on the euro zone states to agree on a bailout package for the troubled country, which is estimated to need to secure some €50 million this year or face a default.
These calls faced adamant opposition from German Chancellor Angela Merkel, who insisted that Greece did not need aid from the EU and would have to turn to the International Monetary Fund (IMF) before asking fellow euro zone states for help. She added that Greece’s debt woes were not on the agenda of the upcoming EU summit in Brussels.
Merkel’s stance enjoyed broad public support in Germany as opinion polls continued to show strong opposition to Germany’s participation in any bailout deal.
Barroso was supported by other euro zone states, notably France and Italy, however, French President Nicolas Sarkozy and Merkel met later in the week and agreed on a mechanism to provide financial aid for Greece with the participation of all 16 euro zone states and reportedly heavy involvement of the IMF. President of the European Central Bank (ECB) Jean-Claude Trichet muddied the outlook for a solution, warning against the IMF’s participation in a bailout deal for Greece.
The two-day summit, which kicked off on Thursday, did result in a solution as EU leaders agreed to loan up to €22 billion to Greece jointly with the IMF in the event that the country is unable to raise enough money in the market.
The agreement provided immediate relief to the euro, which hit ten month lows against the US dollar this week and has under heavy pressure from the unravelling European debt crisis for the past couple of months. The deal, however, did not improve the long-term outlook for Greece’s debt and the gains in the euro and European stock markets were limited.
Middle through the week, rating agency Fitch cut Portugal’s sovereign debt to AA with a negative outlook after warning of a possible downgrade should the ongoing fiscal consolidation continue at a slow pace and prove insufficient.
India’s unexpected interest rate hike and China’s rising inflation rate also contributed to the weakness in precious metals. Europe’s single currency fell to ten month lows against the US dollar and record lows against the Swiss franc. Gold is seen as a riskier alternative and usually moves inversely to the American currency.
Meanwhile, holdings in the world’s largest gold-backed exchange fund SPDR Gold Trust (NYSE: GLD) increased by over 4.5 metric tons to 1,120 tons yesterday, suggesting higher demand for the yellow metal.
The yellow metal fell below US$1,090/oz when the arguments between Germany and EU commissioners reached their peak middle though the week, however it returned to US$1,090/oz and then above US$1,100/oz at the end of the week after the agreement was announced.
Gold currently stands at US$1,106/oz. Silver has also shown improvement, rising to US$16.87/oz, while platinum declined to US$1,595/oz.
Gold miners fared well this week as both Randgold Resources (LSE: RRS) and peer from FTSE 250 Petropavlovsk (LSE: POG) both posted gains. Silver miners followed as blue chip Fresnillo (LSE: FRES) and Hochschild Mining (LSE: HOC) also improved. Platinum miner Lonmin (LSE: LMI) made strong advances during week, while peer midcap Aquarius Platinum (LSE: AQP) was flat.
Large and Mid Cap News
Silver producer and FTSE 250 constituent Hochschild Mining (LSE: HOC) reported full-year results which showed a production rise of 8% to 28.2 million attributable silver equivalent ounces, slightly above the group's 28 million target for the period.
Full year results from mid-tier iron ore producer Ferrexpo (LSE:FXPO) helped lift the company’s share price this week. Shares in the Ukraine focused company have delivered a solid performance in 2010, rising more than 50% as investors begin to price in a recovery in demand for iron ore and speculation of significantly higher contract prices this year.
AngloGold Ashanti (LSE, ASX: AGG; NYSE: AU) has entered into a definitive JV (joint venture) agreement with l'Office des Mines d'Or de Kilo-Moto (OKIMO) over the development of the Ashanti Goldfields Kilo (AGK) project in the Democratic Republic of Congo (DRC) and the transfer of the exploitation permits to AGK.
Small Cap News
In a note on Discovery Metals (AIM: DME), Brisbane-headquartered stockbroker RBS Morgans said the recently completed AU$19m investment and off-take agreement from Transamine are further steps in the development of the Boseto copper project in Botswana.
Nyota Minerals (AIM, ASX: NYO) has appointed Peter David Pettman as a non-executive director, in which capacity he will perform the role of deputy chairman and will chair the remunerations committee.
Central China Goldfields (AIM: GGG) has notified Auzex Resources Ltd (ASX: AZX) of its intention to exercise its option to acquire 50 percent equity in the Bullabulling gold project, located in the Coolgardie area of the Eastern Goldfields of Western Australia.
Frontier Mining (AIM: FML) has secured the extension of the licence period over the Koskuduk, Baitimir, Naimanjal, Beschoku and associated satellite deposits from Kazakhstan’s Ministry of Energy and Mineral Resources (MEMR), which has allocated the company 12 months to confirm its reserves into the State Reserve Balances and to submit its development working programme for those reserves.
In response to an article in the Botswana Guardian, Firestone Diamonds (AIM: FDI) said that the Jwaneng Tailings project remains on schedule to commence production at the end of 2011, with full production to be reached in 2012. The company said the articles’ assertion that the completion had been postponed is incorrect, and Firestone has confirmed this with its domestic partner, Debswana.
Rambler Metals and Mining (TSX-V: RAB, AIM: RMM) reported reduced losses per share for Q2 after reducing exploration expenditure to conserve cash and now intends to further advance its aggressive exploration programme and continue to delineate near term underground resources, while focusing on the development of the Ming mine after securing an off-take agreement for the Newfoundland-based copper and gold project.
Forte Energy NL (AIM, ASX: FTE) has reported further high-grade assay results received from a second group of 21 holes drilled at the at Bir En Nar uranium project in Mauritania, West Africa, which are consistent with assay results from the first eight holes announced on 23 February 2010 that showed grades up to 4,890 parts per million U3O8 and values of more than 1,000 ppm U3O8 across all holes.
Further to the company announcement dated 2 February 2010, Coal of Africa (AIM, ASX, JSE: CZA) has announced that the New Order Mining Right (NOMR) granted by the South African Department of Mineral Resources (DMR) for its 100% owned Vele coking coal project near Musina in the Limpopo Province has now been executed.
South American focused gold explorer and developer Patagonia Gold (AIM: PGD) reported more exceptionally high grade results from ongoing drilling at the Cap-Oeste gold-silver project in Argentina’s Santa Cruz province. Santa Cruz has become a hot bed of exploration activity in recent years thanks to several discoveries in the province and a supportive mining code.
Platinum Australia (ASX: PLA) (AIM: PLAA) has released the latest results from the resource definition drilling program on the Rooderand Platinum Project located on the western Limb of the Bushveld Igneous Complex (BIC) in South Africa.
Ovoca Gold (AIM: OVG, FSE: OVX) has completed the resampling and testing of previously drilled core material on the Oleninskoye deposit on the Kola peninsula in Russia which was drilled to a depth of 285 meters. It said the new data confirmed that the potential of the ore body is higher than thought prior to the retesting programme.
London-based stockbroker Fairfax Securities said that Discovery Metals (AIM: DME, ASX: DML) has a strong management team that has consistently delivered on promises, following recent news-flow. The company recently secured a AU$19m investment and off-take agreement with an international raw materials trading company, Transamine.
Edison Investment Research has started coverage of Goldplat (AIM: GDP), which it called almost unique among gold producers, as it recovers rather than mines gold. According to Edison, Goldplat’s stockpile of ore is constantly evolving, rather than slowly depleting.
Nyota Minerals (AIM, ASX: NYO) has reported positive assay results from the first 18 reverse circulation (RC) holes of an ongoing drill programme at the Tulu Kapi gold project in Ethiopia. The company said that an update and upgrade of the existing Tulu Kapi Inferred Resource of 690,000oz remains on track for completion during the second quarter of 2010.
Rusina Mining (ASX: RML, AIM: RMLA) has announced the issuance of two additional Environmental Compliance Certificates (ECCs) for the Acoje nickel-chromite project on Luzon Island in the Philippines.
Ariana Resources (AIM: AAU) is gearing up for an exploratory drilling campaign at its Kiziltepe gold prospect in Turkey after results from a geophysical programme located several anomalie, and defined a significant exploration upside on the prospect.
Gemfields (AIM: GEM) has informed investors of a number of major shareholder transactions, with the company’s largest and third largest shareholders buying shares in the company. The gemstone producer has been fairly active in recent weeks, with its latest record breaking auction being one of the most notable developments.
Düsseldorf-headquartered Tantalus Rare Earths AG (XETRA: TAE) has appointed an experienced investment banker, Stephen Forman, as the company’s new chief executive. Tantalus said that the board unanimously selected Forman based on his extensive background in the financial community and his excellent contacts to investors worldwide.
Since ITOCHU Corp (TYO: 8001) has announced it is buying a 15% stake in Kalahari Minerals (AIM: KAH), two of Kalahari’ significant shareholders, Emerging Metals (AIM: EML) and Regent Pacific (HKG: 0575), have confirmed that they agreed to sell their entire shareholdings to the major Japanese conglomerate.
Baobab Resources (AIM: BAO) said it continued to strengthen its foothold as a prominent exploration company in Mozambique during the first half, being focused on the Tete iron-vanadium-titanium project. Tete has been confirmed as a high potential project and Baobab plans to rapidly advance its development during the coming year, with feasibility studies targeted within 12-18 months.
Solomon Gold (AIM: SOLG) said the Newmont joint venture is now moving forward at a faster pace than expected. Despite a slow start to the proposed drilling program - as more geological data was gathered and interpreted -, in just the second year of the agreement, Newmont has decided to spend in excess of A$5 million on exploration.
Herencia Resources (AIM: HER) reported promising high grade results from the first three holes in its current diamond drilling campaign at the Paguanta zinc-lead-silver-gold project in Chile, extending the high-grade Cathedral vein by at least 80 metres to the west of the current resource and confirming a new vein south of Cathedral.
Kalahari Minerals (AIM: KAH) announced that a major Japanese conglomerate, the ITOCHU Corporation (TYO: 8001), has agreed to acquire a 15% stake in the company. ITOCHU is one of the largest uranium traders in the world, and according to Kalahari, the transaction significantly solidifies and strengthens its shareholder base.
http://www.proactiveinvestors.co.uk/companies/news/14944/gold-returns-to-1100-after-eu-leaders-agree-on-greek-bailout-14944.html
The outlook for Greece’s debt crisis seemed to be worsening by the day during the better part of the week as EU leaders were nowhere near an agreement on a bailout package for the country despite repeated calls from the European Commission to find common ground on aid for the troubled country. Late last week, President of the European Commission Jose Manuel Barroso called on the euro zone states to agree on a bailout package for the troubled country, which is estimated to need to secure some €50 million this year or face a default.
These calls faced adamant opposition from German Chancellor Angela Merkel, who insisted that Greece did not need aid from the EU and would have to turn to the International Monetary Fund (IMF) before asking fellow euro zone states for help. She added that Greece’s debt woes were not on the agenda of the upcoming EU summit in Brussels.
Merkel’s stance enjoyed broad public support in Germany as opinion polls continued to show strong opposition to Germany’s participation in any bailout deal.
Barroso was supported by other euro zone states, notably France and Italy, however, French President Nicolas Sarkozy and Merkel met later in the week and agreed on a mechanism to provide financial aid for Greece with the participation of all 16 euro zone states and reportedly heavy involvement of the IMF. President of the European Central Bank (ECB) Jean-Claude Trichet muddied the outlook for a solution, warning against the IMF’s participation in a bailout deal for Greece.
The two-day summit, which kicked off on Thursday, did result in a solution as EU leaders agreed to loan up to €22 billion to Greece jointly with the IMF in the event that the country is unable to raise enough money in the market.
The agreement provided immediate relief to the euro, which hit ten month lows against the US dollar this week and has under heavy pressure from the unravelling European debt crisis for the past couple of months. The deal, however, did not improve the long-term outlook for Greece’s debt and the gains in the euro and European stock markets were limited.
Middle through the week, rating agency Fitch cut Portugal’s sovereign debt to AA with a negative outlook after warning of a possible downgrade should the ongoing fiscal consolidation continue at a slow pace and prove insufficient.
India’s unexpected interest rate hike and China’s rising inflation rate also contributed to the weakness in precious metals. Europe’s single currency fell to ten month lows against the US dollar and record lows against the Swiss franc. Gold is seen as a riskier alternative and usually moves inversely to the American currency.
Meanwhile, holdings in the world’s largest gold-backed exchange fund SPDR Gold Trust (NYSE: GLD) increased by over 4.5 metric tons to 1,120 tons yesterday, suggesting higher demand for the yellow metal.
The yellow metal fell below US$1,090/oz when the arguments between Germany and EU commissioners reached their peak middle though the week, however it returned to US$1,090/oz and then above US$1,100/oz at the end of the week after the agreement was announced.
Gold currently stands at US$1,106/oz. Silver has also shown improvement, rising to US$16.87/oz, while platinum declined to US$1,595/oz.
Gold miners fared well this week as both Randgold Resources (LSE: RRS) and peer from FTSE 250 Petropavlovsk (LSE: POG) both posted gains. Silver miners followed as blue chip Fresnillo (LSE: FRES) and Hochschild Mining (LSE: HOC) also improved. Platinum miner Lonmin (LSE: LMI) made strong advances during week, while peer midcap Aquarius Platinum (LSE: AQP) was flat.
Large and Mid Cap News
Silver producer and FTSE 250 constituent Hochschild Mining (LSE: HOC) reported full-year results which showed a production rise of 8% to 28.2 million attributable silver equivalent ounces, slightly above the group's 28 million target for the period.
Full year results from mid-tier iron ore producer Ferrexpo (LSE:FXPO) helped lift the company’s share price this week. Shares in the Ukraine focused company have delivered a solid performance in 2010, rising more than 50% as investors begin to price in a recovery in demand for iron ore and speculation of significantly higher contract prices this year.
AngloGold Ashanti (LSE, ASX: AGG; NYSE: AU) has entered into a definitive JV (joint venture) agreement with l'Office des Mines d'Or de Kilo-Moto (OKIMO) over the development of the Ashanti Goldfields Kilo (AGK) project in the Democratic Republic of Congo (DRC) and the transfer of the exploitation permits to AGK.
Small Cap News
In a note on Discovery Metals (AIM: DME), Brisbane-headquartered stockbroker RBS Morgans said the recently completed AU$19m investment and off-take agreement from Transamine are further steps in the development of the Boseto copper project in Botswana.
Nyota Minerals (AIM, ASX: NYO) has appointed Peter David Pettman as a non-executive director, in which capacity he will perform the role of deputy chairman and will chair the remunerations committee.
Central China Goldfields (AIM: GGG) has notified Auzex Resources Ltd (ASX: AZX) of its intention to exercise its option to acquire 50 percent equity in the Bullabulling gold project, located in the Coolgardie area of the Eastern Goldfields of Western Australia.
Frontier Mining (AIM: FML) has secured the extension of the licence period over the Koskuduk, Baitimir, Naimanjal, Beschoku and associated satellite deposits from Kazakhstan’s Ministry of Energy and Mineral Resources (MEMR), which has allocated the company 12 months to confirm its reserves into the State Reserve Balances and to submit its development working programme for those reserves.
In response to an article in the Botswana Guardian, Firestone Diamonds (AIM: FDI) said that the Jwaneng Tailings project remains on schedule to commence production at the end of 2011, with full production to be reached in 2012. The company said the articles’ assertion that the completion had been postponed is incorrect, and Firestone has confirmed this with its domestic partner, Debswana.
Rambler Metals and Mining (TSX-V: RAB, AIM: RMM) reported reduced losses per share for Q2 after reducing exploration expenditure to conserve cash and now intends to further advance its aggressive exploration programme and continue to delineate near term underground resources, while focusing on the development of the Ming mine after securing an off-take agreement for the Newfoundland-based copper and gold project.
Forte Energy NL (AIM, ASX: FTE) has reported further high-grade assay results received from a second group of 21 holes drilled at the at Bir En Nar uranium project in Mauritania, West Africa, which are consistent with assay results from the first eight holes announced on 23 February 2010 that showed grades up to 4,890 parts per million U3O8 and values of more than 1,000 ppm U3O8 across all holes.
Further to the company announcement dated 2 February 2010, Coal of Africa (AIM, ASX, JSE: CZA) has announced that the New Order Mining Right (NOMR) granted by the South African Department of Mineral Resources (DMR) for its 100% owned Vele coking coal project near Musina in the Limpopo Province has now been executed.
South American focused gold explorer and developer Patagonia Gold (AIM: PGD) reported more exceptionally high grade results from ongoing drilling at the Cap-Oeste gold-silver project in Argentina’s Santa Cruz province. Santa Cruz has become a hot bed of exploration activity in recent years thanks to several discoveries in the province and a supportive mining code.
Platinum Australia (ASX: PLA) (AIM: PLAA) has released the latest results from the resource definition drilling program on the Rooderand Platinum Project located on the western Limb of the Bushveld Igneous Complex (BIC) in South Africa.
Ovoca Gold (AIM: OVG, FSE: OVX) has completed the resampling and testing of previously drilled core material on the Oleninskoye deposit on the Kola peninsula in Russia which was drilled to a depth of 285 meters. It said the new data confirmed that the potential of the ore body is higher than thought prior to the retesting programme.
London-based stockbroker Fairfax Securities said that Discovery Metals (AIM: DME, ASX: DML) has a strong management team that has consistently delivered on promises, following recent news-flow. The company recently secured a AU$19m investment and off-take agreement with an international raw materials trading company, Transamine.
Edison Investment Research has started coverage of Goldplat (AIM: GDP), which it called almost unique among gold producers, as it recovers rather than mines gold. According to Edison, Goldplat’s stockpile of ore is constantly evolving, rather than slowly depleting.
Nyota Minerals (AIM, ASX: NYO) has reported positive assay results from the first 18 reverse circulation (RC) holes of an ongoing drill programme at the Tulu Kapi gold project in Ethiopia. The company said that an update and upgrade of the existing Tulu Kapi Inferred Resource of 690,000oz remains on track for completion during the second quarter of 2010.
Rusina Mining (ASX: RML, AIM: RMLA) has announced the issuance of two additional Environmental Compliance Certificates (ECCs) for the Acoje nickel-chromite project on Luzon Island in the Philippines.
Ariana Resources (AIM: AAU) is gearing up for an exploratory drilling campaign at its Kiziltepe gold prospect in Turkey after results from a geophysical programme located several anomalie, and defined a significant exploration upside on the prospect.
Gemfields (AIM: GEM) has informed investors of a number of major shareholder transactions, with the company’s largest and third largest shareholders buying shares in the company. The gemstone producer has been fairly active in recent weeks, with its latest record breaking auction being one of the most notable developments.
Düsseldorf-headquartered Tantalus Rare Earths AG (XETRA: TAE) has appointed an experienced investment banker, Stephen Forman, as the company’s new chief executive. Tantalus said that the board unanimously selected Forman based on his extensive background in the financial community and his excellent contacts to investors worldwide.
Since ITOCHU Corp (TYO: 8001) has announced it is buying a 15% stake in Kalahari Minerals (AIM: KAH), two of Kalahari’ significant shareholders, Emerging Metals (AIM: EML) and Regent Pacific (HKG: 0575), have confirmed that they agreed to sell their entire shareholdings to the major Japanese conglomerate.
Baobab Resources (AIM: BAO) said it continued to strengthen its foothold as a prominent exploration company in Mozambique during the first half, being focused on the Tete iron-vanadium-titanium project. Tete has been confirmed as a high potential project and Baobab plans to rapidly advance its development during the coming year, with feasibility studies targeted within 12-18 months.
Solomon Gold (AIM: SOLG) said the Newmont joint venture is now moving forward at a faster pace than expected. Despite a slow start to the proposed drilling program - as more geological data was gathered and interpreted -, in just the second year of the agreement, Newmont has decided to spend in excess of A$5 million on exploration.
Herencia Resources (AIM: HER) reported promising high grade results from the first three holes in its current diamond drilling campaign at the Paguanta zinc-lead-silver-gold project in Chile, extending the high-grade Cathedral vein by at least 80 metres to the west of the current resource and confirming a new vein south of Cathedral.
Kalahari Minerals (AIM: KAH) announced that a major Japanese conglomerate, the ITOCHU Corporation (TYO: 8001), has agreed to acquire a 15% stake in the company. ITOCHU is one of the largest uranium traders in the world, and according to Kalahari, the transaction significantly solidifies and strengthens its shareholder base.
http://www.proactiveinvestors.co.uk/companies/news/14944/gold-returns-to-1100-after-eu-leaders-agree-on-greek-bailout-14944.html
Small caps outperform blue chips, FTSE AIM 100 advances 2% during week
Small caps continued performing well this week. The FTSE AIM 100 and FTSE AIM All-Share indexes climbed 2% and 1.6% respectively.
Lo-Q PLC (AIM: LOQ), supplier of virtual queuing systems for theme parks and major attractions, said it has signed renewal agreements with five of its customers to extend their contracts to supply Lo-Q's new flagship VQ2020 queue management system or the Q-txt system.
May Gurney Integrated Services PLC (AIM: MAYG) said it has been selected as preferred bidder to deliver a range of services for Torbay Council in a deal worth up to £130 million.
Collectables specialist Stanley Gibbons (AIM: SGI) said it has made substantial progress in the full-year to end-December 2009 and reported 20% year-on-year sales growth to £23.4m while pre-tax profit rose 11% to £4.1m. It also announced that the launch of its rare stamp investment fund is now planned for the second half of 2010.
NetPlay TV (AIM: NPT) has agreed certain revisions to its relationship with UK-based cable-TV operator Virgin Media Television, whereby NetPlay has acquired the Challenge Jackpot datebases, and Virgin’s option agreement over NetPlay stock has been terminated.
Broker FinnCap commented on Tuesday’s final results from communication project management and outsourcing services provider Norcon (AIM: NCON), saying the report reflected strong growth in sales to established clients in the group’s core Middle East and South East Asia markets.
Last week, Surrey-based medical technology company Biocompatibles (AIM: BII) released their FY09 results, which demonstrated a substantial improvement in its sales performance delivering revenue growth of 50%, ahead of the company’s expectations. Today, a note by Edison Investment Research said the company has high potential and it is undervalued.
Machine-2-Machine (M2M) specialist Telit Communications (AIM: TCM) has successfully demonstrated the eCall functionality in its specialised automotive modules, designed as part of the EU-driven vehicle emergency call system. According to Telit, the successful implementation of the eCall in-band modem capability into its GE864-Quad-Automotive V2 module marks a milestone in the company’s research activities.
Full year revenues at home credit and motor finance specialist S & U PLC (LSE: SUS) were flat at £45.8 million (2009: £46.2 million), net profits jumped 9% to £9 million and group gearing fell 15% to 57% thanks to a surge in net cash from operating activities to £8.6m (2009: £3.9m). Other financial highlights released this morning included a 6.9% increase in net assets to £46.8 million and a reduction in net borrowings to £26.6 million (2009: £31.3 million). Earnings per share climbed a very respectable 10.2% to 55.2 pence, and the total dividend, which is a key part of S & U PLC’s attraction for many shareholders, was increased by 6.2% to 34 pence - a dividend yield of 6.7%.
Payment and data processor Planet Payment (AIM: PPT, OTCQX: PLPM) has had an exceptionally good year as its losses narrowed considerably and revenues soared 31% with yet more growth expected this year. The company continues executing its strategic objectives, concluding business expansion and cross sales of its products to existing and new customers.
Alliance Pharma (AIM: APH) published its results from a landmark year in which the pharmaceutical company increased sales by 44% to £31.2m compared with 21.8m in the previous financial year. In the twelve months ended 31 December 2009, the company achieved a three-fold increase in pretax profit before exceptionals to £8.6m as well as in adjusted earnings per share (EPS) to 3.55p.
Norcon (AIM: NCON) announced the completion of a placing to raise approximately £4.5 million before expenses, and plans to use the money for the pursuit of further organic growth opportunities.
In a comment on full-year results from privately-owned Cinterion Wireless Modules and the broader machine-to-machine (M2M) market, Astaire Securities said that pressured average sales prices will favour the larger operators and those with low cost manufacturing centres, such as Telit Communications (AIM: TCM).
British-based broadband satellite operator Avanti Communications (AIM: AVN) has welcomed the government's decision to launch the UK Space Agency. Yesterday, Lord Mandelson and Lord Drayson announced the plans to unify the current inter-department space policy to create a ‘central-hub of space activity’. Avanti is partof the Space Agency’s Steering Board.
Bglobal (AIM: BGBL) announced two new contract wins today, with electricity provider MA Energy and local government body Transport for London (TfL), both signing up for the company’s smart-metering service. The company’s share have been buoyed by the business wins, rising almost 4% on London’s AIM market in early afternoon deals.
Communications consultant and project management specialist Norcon (AIM: NCON) delivered a strong set of results for the year ended 31 December 2009. The company reported 16% revenue growth to US$78.2m (FY08: US$67.7m), net profit increased by 20% to US$7.7m (FY08: US$6.4m) and pro-forma earnings per share increased by 20% to US$0.18 (FY08: US$0.15).
Orders for Synchronica (AIM: SYNC) are coming in hard and fast: today the group announced a reseller agreement for its Mobile Gateway email product, covering 25,000 licenses, with an Indian device manufacturer. Under the terms of the deal, the new Indian partner will bundle Synchronica's Mobile Gateway with devices under its established brand, to be sold in turn to mobile operators across India.
Asterand (AIM: ATD) said its subsidiary BioSeek and research and development focused specialty pharmaceutical company Ono Pharmaceutical Co Ltd of Japan have signed a multi-year drug discovery collaboration agreement, under which BioSeek will receive research funding and milestone payments upon achievement of a certain milestone by a drug candidate discovered under this collaboration.
In its interim results statement, Seeing Machines (AIM: SEE) said its products are gaining traction with the application of its DSS technology in the mining industry expected to generate increasing value going forward. In the six-months ended 31 December 2009, the company achieved revenue growth of 25% against the preceding half, additionally the company said its strong expenditure controls enabled it to maintain cash reserves throughout the period.
StatPro Group (AIM: SOG) has secured a significant three-year contract worth more than US$1m from a prominent Asian bank for its newly launched Software as a Service (SaaS) platform, StatPro Seven. According to StatPro, its new Asian client chose the product specifically because the company was able to offer a combined analytics platform with the required data feeds on a SaaS basis thus minimising their IT costs and ensuring first class support.
Dual-listed Ceramic Fuel Cells (AIM/ASX: CFU) has taken a major step forward today with a partnership with leading Japanese companies Mitsui & Co. and Osaka Gas.
ReNeuron Group (AIM: RENE) said it has been cited as a UK-based world leader in regenerative medicine in a new publication by the UK government.
Modern Water (AIM: MWG) achieved an important milestone at its Al Khaluf desalination proving plant in Oman, when it turned on the water supply during a ceremony attended by the chairman of the country's Public Authority for Electricity and Water (PAEW). The plant is the first desalination plant to use a new process called Manipulated Osmosis (MO) in the Middle East.
http://www.proactiveinvestors.co.uk/companies/news/14949/small-caps-outperform-blue-chips-ftse-aim-100-advances-2-during-week-14949.html
Lo-Q PLC (AIM: LOQ), supplier of virtual queuing systems for theme parks and major attractions, said it has signed renewal agreements with five of its customers to extend their contracts to supply Lo-Q's new flagship VQ2020 queue management system or the Q-txt system.
May Gurney Integrated Services PLC (AIM: MAYG) said it has been selected as preferred bidder to deliver a range of services for Torbay Council in a deal worth up to £130 million.
Collectables specialist Stanley Gibbons (AIM: SGI) said it has made substantial progress in the full-year to end-December 2009 and reported 20% year-on-year sales growth to £23.4m while pre-tax profit rose 11% to £4.1m. It also announced that the launch of its rare stamp investment fund is now planned for the second half of 2010.
NetPlay TV (AIM: NPT) has agreed certain revisions to its relationship with UK-based cable-TV operator Virgin Media Television, whereby NetPlay has acquired the Challenge Jackpot datebases, and Virgin’s option agreement over NetPlay stock has been terminated.
Broker FinnCap commented on Tuesday’s final results from communication project management and outsourcing services provider Norcon (AIM: NCON), saying the report reflected strong growth in sales to established clients in the group’s core Middle East and South East Asia markets.
Last week, Surrey-based medical technology company Biocompatibles (AIM: BII) released their FY09 results, which demonstrated a substantial improvement in its sales performance delivering revenue growth of 50%, ahead of the company’s expectations. Today, a note by Edison Investment Research said the company has high potential and it is undervalued.
Machine-2-Machine (M2M) specialist Telit Communications (AIM: TCM) has successfully demonstrated the eCall functionality in its specialised automotive modules, designed as part of the EU-driven vehicle emergency call system. According to Telit, the successful implementation of the eCall in-band modem capability into its GE864-Quad-Automotive V2 module marks a milestone in the company’s research activities.
Full year revenues at home credit and motor finance specialist S & U PLC (LSE: SUS) were flat at £45.8 million (2009: £46.2 million), net profits jumped 9% to £9 million and group gearing fell 15% to 57% thanks to a surge in net cash from operating activities to £8.6m (2009: £3.9m). Other financial highlights released this morning included a 6.9% increase in net assets to £46.8 million and a reduction in net borrowings to £26.6 million (2009: £31.3 million). Earnings per share climbed a very respectable 10.2% to 55.2 pence, and the total dividend, which is a key part of S & U PLC’s attraction for many shareholders, was increased by 6.2% to 34 pence - a dividend yield of 6.7%.
Payment and data processor Planet Payment (AIM: PPT, OTCQX: PLPM) has had an exceptionally good year as its losses narrowed considerably and revenues soared 31% with yet more growth expected this year. The company continues executing its strategic objectives, concluding business expansion and cross sales of its products to existing and new customers.
Alliance Pharma (AIM: APH) published its results from a landmark year in which the pharmaceutical company increased sales by 44% to £31.2m compared with 21.8m in the previous financial year. In the twelve months ended 31 December 2009, the company achieved a three-fold increase in pretax profit before exceptionals to £8.6m as well as in adjusted earnings per share (EPS) to 3.55p.
Norcon (AIM: NCON) announced the completion of a placing to raise approximately £4.5 million before expenses, and plans to use the money for the pursuit of further organic growth opportunities.
In a comment on full-year results from privately-owned Cinterion Wireless Modules and the broader machine-to-machine (M2M) market, Astaire Securities said that pressured average sales prices will favour the larger operators and those with low cost manufacturing centres, such as Telit Communications (AIM: TCM).
British-based broadband satellite operator Avanti Communications (AIM: AVN) has welcomed the government's decision to launch the UK Space Agency. Yesterday, Lord Mandelson and Lord Drayson announced the plans to unify the current inter-department space policy to create a ‘central-hub of space activity’. Avanti is partof the Space Agency’s Steering Board.
Bglobal (AIM: BGBL) announced two new contract wins today, with electricity provider MA Energy and local government body Transport for London (TfL), both signing up for the company’s smart-metering service. The company’s share have been buoyed by the business wins, rising almost 4% on London’s AIM market in early afternoon deals.
Communications consultant and project management specialist Norcon (AIM: NCON) delivered a strong set of results for the year ended 31 December 2009. The company reported 16% revenue growth to US$78.2m (FY08: US$67.7m), net profit increased by 20% to US$7.7m (FY08: US$6.4m) and pro-forma earnings per share increased by 20% to US$0.18 (FY08: US$0.15).
Orders for Synchronica (AIM: SYNC) are coming in hard and fast: today the group announced a reseller agreement for its Mobile Gateway email product, covering 25,000 licenses, with an Indian device manufacturer. Under the terms of the deal, the new Indian partner will bundle Synchronica's Mobile Gateway with devices under its established brand, to be sold in turn to mobile operators across India.
Asterand (AIM: ATD) said its subsidiary BioSeek and research and development focused specialty pharmaceutical company Ono Pharmaceutical Co Ltd of Japan have signed a multi-year drug discovery collaboration agreement, under which BioSeek will receive research funding and milestone payments upon achievement of a certain milestone by a drug candidate discovered under this collaboration.
In its interim results statement, Seeing Machines (AIM: SEE) said its products are gaining traction with the application of its DSS technology in the mining industry expected to generate increasing value going forward. In the six-months ended 31 December 2009, the company achieved revenue growth of 25% against the preceding half, additionally the company said its strong expenditure controls enabled it to maintain cash reserves throughout the period.
StatPro Group (AIM: SOG) has secured a significant three-year contract worth more than US$1m from a prominent Asian bank for its newly launched Software as a Service (SaaS) platform, StatPro Seven. According to StatPro, its new Asian client chose the product specifically because the company was able to offer a combined analytics platform with the required data feeds on a SaaS basis thus minimising their IT costs and ensuring first class support.
Dual-listed Ceramic Fuel Cells (AIM/ASX: CFU) has taken a major step forward today with a partnership with leading Japanese companies Mitsui & Co. and Osaka Gas.
ReNeuron Group (AIM: RENE) said it has been cited as a UK-based world leader in regenerative medicine in a new publication by the UK government.
Modern Water (AIM: MWG) achieved an important milestone at its Al Khaluf desalination proving plant in Oman, when it turned on the water supply during a ceremony attended by the chairman of the country's Public Authority for Electricity and Water (PAEW). The plant is the first desalination plant to use a new process called Manipulated Osmosis (MO) in the Middle East.
http://www.proactiveinvestors.co.uk/companies/news/14949/small-caps-outperform-blue-chips-ftse-aim-100-advances-2-during-week-14949.html
Crude ends week at $80 after downward revision to US Q4 GDP
Crude prices started the week with declines, still feeling pressure from India’s move to hike its repo rate, which is charges banks for short term loans, to 5% and its reverse repurchase rate that it pays banks for loans to 3.5% in what was explained as an attempt to curb inflation. Losses from India’s rate hikes were in part offset by OPEC’s (Organisation of Petroleum Exporting Countries) decision to make no change to its production quotas for this year.
Oil was further hit by a drop in existing home sales in the US, which declined 0.6% in February, as was revealed on Tuesday. The US dollar also grew stronger as the euro declined on the European debt woes following Fitch’s downgrade of Portugal to AA- and the lack of a consensus among the euro zone states on a bailout deal for debt-laden Greece. The agreement that was reached by EU leaders on Friday provided immediate relief for Europe’s single currency, though failed to substantially improve the long term outlook for Greece’s fiscal problems, limiting gains in the euro.
A stronger US dollar makes dollar denominated commodities including crude more expensive for holders of other currencies, curbing demand.
The inventories reports that came out this week offered little support for crude, showing significant build-ups in US oil stockpiles. US Energy Information Administration (EIA) reported that crude inventories increased by 7.2 mmbbls (million barrels) compared to an expected rise of just 1.7 mmbbls. EIA said that gasoline inventories declined by 2.7 mmbbls, while distillates, which include heating oil, dropped 2.4 mmbbls.
Earlier in the week, the American Petroleum Institute (API) reported a 7.5 mmbbls rise in crude stockpiles, adding that gasoline stocks fell 81,000 barrels, while distillates declined by 2.5 mmbbls.
Oil got some support by an improved demand outlook amid a rally in European and Asian stock markets on Thursday and Friday and bullish US jobless claims data that showed a steeper than expected decline of 14,000 in initial jobless claims last week to 442,000.
The recovery in the commodity market, however, was stopped by the downward revision of US GDP growth in the final quarter of 2009 that was announced on Friday, showing a drop from 5.9% to 5.6%.
May Brent Crude slid to US$79.36/barrel at the end of the week, while US light, sweet crude currently stands at US$80.15/barrel.
Supermajors BP (LSE: BP) and Shell (LSE: RDSB) ended the week flat. Other FTSE 100 oil and gas producers headed in different directions as while BG Group (LSE: BG) declined sharply, Cairn Energy (LSE: CNE) posted good gains and Tullow Oil (LSE: TLW) made smaller advances.
Oil and gas engineering firm Amec (LSE: AMEC) advanced, while peer Petrofac (LSE: PFC) rose sharply during the week.
Large and Mid Cap News
BG Group (LSE: BG) has signed a Liquefied Natural Gas (LNG) sales contract with state-owned China National Offshore Oil Corporation (CNOOC), concluding negotiations announced in May 2009, for the supply of 3.6 million tonnes of LNG per annum (mtpa) over a 20-year period. The deal is reported to be worth between US$40-80bn depending on varying oil price assumptions.
FTSE 250 oil and gas producer Soco International (LSE: SIA) said 2009 results have been the strongest to date as pretax profit from continuing operations rose from US$37.4 million to US$93.5 million while revenues more than doubled from US$55.34 million to US$131 million. The group expects 2010 to be an eventful year with the possibility of the expansion of reserves over the course of this year’s drilling programme.
Small Cap News
Xtract Energy (AIM: XTR) reported on the progress being made by its 50% owned Turkish subsidiary Extrem Energy AS, on the Alasehir licence in South-West Turkey. In the past few days, Extrem has completed the drilling, wire-line logging and casing of the Sarikiz-3 exploration well. Xtract said that oil shows were recorded during drilling and preliminary analysis of the wire-line logs provides further indications of hydrocarbons at several levels.
Northern Petroleum (AIM: NOP) has completed the seismic operations in the offshore West Sicily thrust belt, which covers four licences: GR17 NP, GR20 NP, GR21 NP and GR22 NP. The licenses are being explored through a joint venture with Royal Dutch Shell (LSE: RDSB, RDSA) subsidiary, Shell Italia E&P SpA.
Dominion Petroleum (AIM: DPL) said it is commencing its 2010 exploration programme, embarking on the most active period in corporate history that will include drilling and 3D seismic acquisition at its African projects.
Gulfsands Petroleum has announced that it had reached an agreement with AuDAX Resources (ASX: ADX), to acquire working interest positions in two exploration permits in Tunisia, Chorbane and Kerkouane, and one exploration permit in Southern Italy, GR15 PU. Gulfsands will earn-in to the projects through the partial funding of upcoming exploration work.
In its interim report, Nighthawk Energy (AIM: HAWK) said it continues to be encouraged by its performance, as it begins to see progress with its production. In the six months ended 31 December 2009, the company generated revenues of US$1.01m, up 218% against the comparative period in 2008.
Victoria Oil & Gas (AIM: VOG) announced that George Donne is taking a 12 month leave of absence and is stepping down from his position as executive director to “pursue his passion for hiking and mountaineering,” while Jonathan Scott-Barrett will join the management as commercial director, reporting to the board.
Gulfsands Petroleum (AIM: GPX) confirmed that the latest offer approach, made on 18 March, was priced at 315p per share for the company’s entire share capital. The company reiterated that proposal is wholly inadequate, highly conditional and materially undervalues Gulfsands.
Ascent Resources’ (AIM: AST) Hungarian-based subsidiary PetroHungaria kft has begun production from the PEN-105 well in the Penészlek area of the Nyírség permits. Production from the well is expected to stabilise at over 2mmscfd (million standard cubic feet per day) within a few days. PEN-105 was completed and shut-in in December whilst the company connected it to the main export pipeline and completed drilling of the nearby PEN-101 well.
Northern Petroleum’s (AIM: NOP) Dutch subsidiary Northern Petroleum Nederland (NPN) will acquire the respective interests of Nederlandse Aardolie Maatschappij (NAM) and Dyas and assume operatorship of the Zuid-Friesland III production license, which has been granted to NAM and Dyas along with Total (NYSE: TOT) and Petro-Canada.
Petro Matad (AIM: MATD) has appointed an exploration manager, hiring petroleum geologist James Coogan, who has an extensive experience in geological terrains that are analogous to the North Asian basins in which the company operates.
Pan Andean Resources PLC (AIM: PRE) said it was notified that managing director David Horgan acquired 170,000 ordinary shares in the company at a price of 15.5 pence each and now holds 3,735,000 shares, or 2.93 percent of the capital.
Ascent Resources (AIM: AST) has completed the 3-D seismic processing and the preliminary interpretation for the Petišovci project in Slovenia, and the results have exceeded its expectations. The 3-D seismic data was acquired over some 120 square kilometres, extending the project area and mapping over 12 new drilling targets with a total estimated potential of over 75Bcf (billion cubic feet) of recoverable gas.
In it first-half results, Xtract Energy (AIM: XTR) said has continued its transformation from being a passive investor to being much more involved in its investee companies. During the six months to end-December 2009, the company’s core investees Extrem Energy and Elko Energy continued to make progress on their respective development projects and since the period-end, Xtract upped its stakes to at least 50% in each company.
Even though the economic conditions remained challenging in 2009, Xcite Energy (TSX-V, AIM: XEL) managed to make significant progress on the operational and financial fronts at its key project, the Bentley oil field in the North Sea, which was reflected in today’s full year report.
Following closing of the latest placing last week, Xcite Energy (TSX-V, AIM: XEL) has received formal notification from three investors today of their respective holdings in the group, which is currently developing the Bentley oilfield in the North Sea.
http://www.proactiveinvestors.co.uk/companies/news/14941/crude-ends-week-at-80-after-downward-revision-to-us-q4-gdp-14941.html
Oil was further hit by a drop in existing home sales in the US, which declined 0.6% in February, as was revealed on Tuesday. The US dollar also grew stronger as the euro declined on the European debt woes following Fitch’s downgrade of Portugal to AA- and the lack of a consensus among the euro zone states on a bailout deal for debt-laden Greece. The agreement that was reached by EU leaders on Friday provided immediate relief for Europe’s single currency, though failed to substantially improve the long term outlook for Greece’s fiscal problems, limiting gains in the euro.
A stronger US dollar makes dollar denominated commodities including crude more expensive for holders of other currencies, curbing demand.
The inventories reports that came out this week offered little support for crude, showing significant build-ups in US oil stockpiles. US Energy Information Administration (EIA) reported that crude inventories increased by 7.2 mmbbls (million barrels) compared to an expected rise of just 1.7 mmbbls. EIA said that gasoline inventories declined by 2.7 mmbbls, while distillates, which include heating oil, dropped 2.4 mmbbls.
Earlier in the week, the American Petroleum Institute (API) reported a 7.5 mmbbls rise in crude stockpiles, adding that gasoline stocks fell 81,000 barrels, while distillates declined by 2.5 mmbbls.
Oil got some support by an improved demand outlook amid a rally in European and Asian stock markets on Thursday and Friday and bullish US jobless claims data that showed a steeper than expected decline of 14,000 in initial jobless claims last week to 442,000.
The recovery in the commodity market, however, was stopped by the downward revision of US GDP growth in the final quarter of 2009 that was announced on Friday, showing a drop from 5.9% to 5.6%.
May Brent Crude slid to US$79.36/barrel at the end of the week, while US light, sweet crude currently stands at US$80.15/barrel.
Supermajors BP (LSE: BP) and Shell (LSE: RDSB) ended the week flat. Other FTSE 100 oil and gas producers headed in different directions as while BG Group (LSE: BG) declined sharply, Cairn Energy (LSE: CNE) posted good gains and Tullow Oil (LSE: TLW) made smaller advances.
Oil and gas engineering firm Amec (LSE: AMEC) advanced, while peer Petrofac (LSE: PFC) rose sharply during the week.
Large and Mid Cap News
BG Group (LSE: BG) has signed a Liquefied Natural Gas (LNG) sales contract with state-owned China National Offshore Oil Corporation (CNOOC), concluding negotiations announced in May 2009, for the supply of 3.6 million tonnes of LNG per annum (mtpa) over a 20-year period. The deal is reported to be worth between US$40-80bn depending on varying oil price assumptions.
FTSE 250 oil and gas producer Soco International (LSE: SIA) said 2009 results have been the strongest to date as pretax profit from continuing operations rose from US$37.4 million to US$93.5 million while revenues more than doubled from US$55.34 million to US$131 million. The group expects 2010 to be an eventful year with the possibility of the expansion of reserves over the course of this year’s drilling programme.
Small Cap News
Xtract Energy (AIM: XTR) reported on the progress being made by its 50% owned Turkish subsidiary Extrem Energy AS, on the Alasehir licence in South-West Turkey. In the past few days, Extrem has completed the drilling, wire-line logging and casing of the Sarikiz-3 exploration well. Xtract said that oil shows were recorded during drilling and preliminary analysis of the wire-line logs provides further indications of hydrocarbons at several levels.
Northern Petroleum (AIM: NOP) has completed the seismic operations in the offshore West Sicily thrust belt, which covers four licences: GR17 NP, GR20 NP, GR21 NP and GR22 NP. The licenses are being explored through a joint venture with Royal Dutch Shell (LSE: RDSB, RDSA) subsidiary, Shell Italia E&P SpA.
Dominion Petroleum (AIM: DPL) said it is commencing its 2010 exploration programme, embarking on the most active period in corporate history that will include drilling and 3D seismic acquisition at its African projects.
Gulfsands Petroleum has announced that it had reached an agreement with AuDAX Resources (ASX: ADX), to acquire working interest positions in two exploration permits in Tunisia, Chorbane and Kerkouane, and one exploration permit in Southern Italy, GR15 PU. Gulfsands will earn-in to the projects through the partial funding of upcoming exploration work.
In its interim report, Nighthawk Energy (AIM: HAWK) said it continues to be encouraged by its performance, as it begins to see progress with its production. In the six months ended 31 December 2009, the company generated revenues of US$1.01m, up 218% against the comparative period in 2008.
Victoria Oil & Gas (AIM: VOG) announced that George Donne is taking a 12 month leave of absence and is stepping down from his position as executive director to “pursue his passion for hiking and mountaineering,” while Jonathan Scott-Barrett will join the management as commercial director, reporting to the board.
Gulfsands Petroleum (AIM: GPX) confirmed that the latest offer approach, made on 18 March, was priced at 315p per share for the company’s entire share capital. The company reiterated that proposal is wholly inadequate, highly conditional and materially undervalues Gulfsands.
Ascent Resources’ (AIM: AST) Hungarian-based subsidiary PetroHungaria kft has begun production from the PEN-105 well in the Penészlek area of the Nyírség permits. Production from the well is expected to stabilise at over 2mmscfd (million standard cubic feet per day) within a few days. PEN-105 was completed and shut-in in December whilst the company connected it to the main export pipeline and completed drilling of the nearby PEN-101 well.
Northern Petroleum’s (AIM: NOP) Dutch subsidiary Northern Petroleum Nederland (NPN) will acquire the respective interests of Nederlandse Aardolie Maatschappij (NAM) and Dyas and assume operatorship of the Zuid-Friesland III production license, which has been granted to NAM and Dyas along with Total (NYSE: TOT) and Petro-Canada.
Petro Matad (AIM: MATD) has appointed an exploration manager, hiring petroleum geologist James Coogan, who has an extensive experience in geological terrains that are analogous to the North Asian basins in which the company operates.
Pan Andean Resources PLC (AIM: PRE) said it was notified that managing director David Horgan acquired 170,000 ordinary shares in the company at a price of 15.5 pence each and now holds 3,735,000 shares, or 2.93 percent of the capital.
Ascent Resources (AIM: AST) has completed the 3-D seismic processing and the preliminary interpretation for the Petišovci project in Slovenia, and the results have exceeded its expectations. The 3-D seismic data was acquired over some 120 square kilometres, extending the project area and mapping over 12 new drilling targets with a total estimated potential of over 75Bcf (billion cubic feet) of recoverable gas.
In it first-half results, Xtract Energy (AIM: XTR) said has continued its transformation from being a passive investor to being much more involved in its investee companies. During the six months to end-December 2009, the company’s core investees Extrem Energy and Elko Energy continued to make progress on their respective development projects and since the period-end, Xtract upped its stakes to at least 50% in each company.
Even though the economic conditions remained challenging in 2009, Xcite Energy (TSX-V, AIM: XEL) managed to make significant progress on the operational and financial fronts at its key project, the Bentley oil field in the North Sea, which was reflected in today’s full year report.
Following closing of the latest placing last week, Xcite Energy (TSX-V, AIM: XEL) has received formal notification from three investors today of their respective holdings in the group, which is currently developing the Bentley oilfield in the North Sea.
http://www.proactiveinvestors.co.uk/companies/news/14941/crude-ends-week-at-80-after-downward-revision-to-us-q4-gdp-14941.html
FTSE 100 adds 1% during week as EU leaders reach deal on Greek aid, US jobless claims decline
Markets remained bullish this week, helping the FTSE 100 gain 1% and clear the 5,700 mark despite growing uncertainty over Greece’s fiscal situation and Fitch’s downgrade of Portugal’s sovereign rating to exacerbate the European debt crisis.
The Footsie started the week in the negative amid renewed worries over the Greek debt crisis after President of the European Commission Jose Manuel Barroso openly challenged German Chancellor Angela Merkel, who repeatedly and adamantly expressed her belief that Greece did not need financial aid from the euro zone and would have to turn to the International Monetary Fund (IMF) for assistance before asking the EU for help. Late last week, Barroso called on the euro zone states to agree on a bailout package for the troubled country, which is estimated to need to secure some €50 million this year or face a default. Merkel, who also insisted that Greece’s debt woes were not on the agenda of the upcoming EU summit in Brussels, was backed by a strong support of the German population, which, as public opinion polls showed, heavily opposed Germany’s participation in any bailout deal.
Barroso was supported by other euro zone states, notably France and Italy, however, French President Nicolas Sarkozy and Merkel met later in the week and agreed on a mechanism to provide financial aid for Greece with the participation of all 16 euro zone states and reportedly heavy involvement of the IMF. President of the European Central Bank (ECB) Jean-Claude Trichet muddied the outlook for a solution, warning against the IMF’s participation in a bailout deal for Greece.
The two-day summit, which kicked off on Thursday, did result in a solution as EU leaders agreed to loan up to €22 billion to Greece jointly with the IMF in the event that the country is unable to raise enough money in the market.
The agreement provided immediate relief to the euro, which hit ten month lows against the US dollar this week and has under heavy pressure from the unravelling European debt crisis for the past couple of months. The deal, however, did not improve the long-term outlook for Greece’s debt and the gains in the euro and European stock markets were limited.
Middle through the week, rating agency Fitch cut Portugal’s sovereign debt to AA with a negative outlook after warning of a possible downgrade if the country’s fiscal consolidation progresses at a slow pace.
Investors had to digest some mixed data in the beginning of the week when the Chicago Fed national activity index showed a decline from -0.04 to -0.64 in February.
On Tuesday, a US existing home sales update showed a 0.6% decline in February, which was balanced out by a decline in UK inflation from 3.5% to 3% reported on the same day.
All eyes were on Chancellor Alistair Darling’s Wednesday’s budget speech, which lifted housebuilders and banking stocks after Darling announced a two year suspension of stamp duty for first time buyers on houses worth up to £250,000 and said that part-nationalised banks Lloyds (LSE: LLOY) and Royal Bank of Scotland (LSE: RBS) would have to dish out at least £94 billion in business loans in the fiscal 2010/11 with half of these funds going to medium and small businesses.
The Footsie made most of its gains on Thursday, buoyed by strong domestic and US economic data. A UK retail sales update showed a month on month growth of 2.1% following a 3.5% decline in February, while US initial jobless claims data revealed a steeper than expected decline of 14,000 in initial jobless claims last week to 442,000.
UK markets slumped on Friday following a disappointing US bond auction and US GDP data, which showed a downward revision of Q4 GDP growth from 5.9% to 5.6%. The negative update was balanced out by the University of Michigan consumer confidence index for March, which remained unchanged at 73.6, which a decline to 73 was expected.
The FTSE 100 and the Dow Jones Industrial Average, the broader S&P 500 index and the technology heavy NASDAQ composite are currently projected to open marginally higher on Monday.
http://www.proactiveinvestors.co.uk/companies/news/14937/ftse-100-adds-1-during-week-as-eu-leaders-reach-deal-on-greek-aid-us-jobless-claims-decline-14937.html
The Footsie started the week in the negative amid renewed worries over the Greek debt crisis after President of the European Commission Jose Manuel Barroso openly challenged German Chancellor Angela Merkel, who repeatedly and adamantly expressed her belief that Greece did not need financial aid from the euro zone and would have to turn to the International Monetary Fund (IMF) for assistance before asking the EU for help. Late last week, Barroso called on the euro zone states to agree on a bailout package for the troubled country, which is estimated to need to secure some €50 million this year or face a default. Merkel, who also insisted that Greece’s debt woes were not on the agenda of the upcoming EU summit in Brussels, was backed by a strong support of the German population, which, as public opinion polls showed, heavily opposed Germany’s participation in any bailout deal.
Barroso was supported by other euro zone states, notably France and Italy, however, French President Nicolas Sarkozy and Merkel met later in the week and agreed on a mechanism to provide financial aid for Greece with the participation of all 16 euro zone states and reportedly heavy involvement of the IMF. President of the European Central Bank (ECB) Jean-Claude Trichet muddied the outlook for a solution, warning against the IMF’s participation in a bailout deal for Greece.
The two-day summit, which kicked off on Thursday, did result in a solution as EU leaders agreed to loan up to €22 billion to Greece jointly with the IMF in the event that the country is unable to raise enough money in the market.
The agreement provided immediate relief to the euro, which hit ten month lows against the US dollar this week and has under heavy pressure from the unravelling European debt crisis for the past couple of months. The deal, however, did not improve the long-term outlook for Greece’s debt and the gains in the euro and European stock markets were limited.
Middle through the week, rating agency Fitch cut Portugal’s sovereign debt to AA with a negative outlook after warning of a possible downgrade if the country’s fiscal consolidation progresses at a slow pace.
Investors had to digest some mixed data in the beginning of the week when the Chicago Fed national activity index showed a decline from -0.04 to -0.64 in February.
On Tuesday, a US existing home sales update showed a 0.6% decline in February, which was balanced out by a decline in UK inflation from 3.5% to 3% reported on the same day.
All eyes were on Chancellor Alistair Darling’s Wednesday’s budget speech, which lifted housebuilders and banking stocks after Darling announced a two year suspension of stamp duty for first time buyers on houses worth up to £250,000 and said that part-nationalised banks Lloyds (LSE: LLOY) and Royal Bank of Scotland (LSE: RBS) would have to dish out at least £94 billion in business loans in the fiscal 2010/11 with half of these funds going to medium and small businesses.
The Footsie made most of its gains on Thursday, buoyed by strong domestic and US economic data. A UK retail sales update showed a month on month growth of 2.1% following a 3.5% decline in February, while US initial jobless claims data revealed a steeper than expected decline of 14,000 in initial jobless claims last week to 442,000.
UK markets slumped on Friday following a disappointing US bond auction and US GDP data, which showed a downward revision of Q4 GDP growth from 5.9% to 5.6%. The negative update was balanced out by the University of Michigan consumer confidence index for March, which remained unchanged at 73.6, which a decline to 73 was expected.
The FTSE 100 and the Dow Jones Industrial Average, the broader S&P 500 index and the technology heavy NASDAQ composite are currently projected to open marginally higher on Monday.
http://www.proactiveinvestors.co.uk/companies/news/14937/ftse-100-adds-1-during-week-as-eu-leaders-reach-deal-on-greek-aid-us-jobless-claims-decline-14937.html
FTSE 100 trims losses as Dow Jones, S&P 500 and NASDAQ open higher
Overview: the FTSE 100 held on to the 5,700 mark after shedding as much as 0.5% earlier in the day on Thursday's dissapointing US bond auction and today's mixed US data. It was reported that US Q4 GDP growth was revised downwards from an annualised 5.9% to 5.6%, while the University of Michigan consumer sentiment index remained unchanged at 73.6 in March.
Communications group WPP (LSE: WPP) led the blue chips, advancing 2.6%. Commercial property company British Land (LSE: BLND), Cairn Energy (LSE: CNE) and retailer Marks & Spencer (LSE: MKS) added 2%. Credit information group Experian (LSE: EXPN) followed with a gain of nearly 2%. Other commercial property stocks Segro (LSE: SGRO), Liberty International (LSE: LII) and Hammerson (LSE: HMSO) tacked on slightly more than 1%.
Cable & Wireless Communications (LSE: CWC) and Cable & Wireless Worldwide (LSE: CW) were the heaviest fallers among the blue chips with losses of 23% and 7% on their first day of trading on the LSE following the demerger of Cable & Wireless. Power generation company International Power (LSE: IPR) and hedge fund manager Man Group (LSE: EMG) followed with declines of 3.5% and 2.5% respectively.
US stocks opened higher. The Dow Jones Industrial Average and the broader S&P 500 index advanced 0.55%, while the technology heavy NASDAQ composite rose 0.45%.
Commodities
Crude prices were on the rise today with US benchmark crude eclipsing US$81/barrel on the New York Mercantile Exchange (NYMEX).
Oil was lifted by an improved demand outlook amid a rally in European and Asian stock markets and bullish US jobless claims data that showed a steeper than expected decline of 14,000 in initial jobless claims last week to 442,000.
Meanwhile, the euro strengthened today, gainin on the US dollar after European Union leaders agreed on a joint €30 million bailout package with the International Monetary Fund (IMF) for debt-laden Greece, easing worries over its fiscal crisis, which has been weighing on Europe’s single currency for weeks.
However, the deal did not significantly improve the long-term outlook for Greece’s debt situation and the euro’s gains were limited.
A stronger US dollar makes dollar denominated commodities including crude more expensive for holders of other currencies, curbing demand.
Crude prices have been under pressure from inventories reports that were released earlier this week showed a substantial build-up in US stockpiles. US Energy Information Administration (EIA) reported that crude inventories increased by 7.2 mmbbls (million barrels) compared to an expected rise of just 1.7 mmbbls. EIA said that gasoline inventories declined by 2.7 mmbbls, while distillates, which include heating oil, dropped 2.4 mmbbls.
Earlie rin the week, the American Petroleum Institute (API) reported a 7.5 mmbbls rise in crude stockpiles, adding that gasoline stocks fell 81,000 barrels, while distillates declined by 2.5 mmbbls.
May Brent Crude improved to US$80.28/barrel, while US light, sweet crude reached US$81/barrel.
Blue chip oil and gas producers didn’t show much movement today. BG Group (LSE: BG) declined 1.8%, while supermajor BP (LSE: BP) followed with a small loss. Shell (LSE: RDSB) and Tullow Oil (LSE: TLW) were flat. Cairn Energy (LSE: CNE) outperformed its peers, adding less than 1%.
Amec (LSE: AMEC) posted a marginal loss, while fellow oil and gas engineering firm Petrofac (LSE: PFC) was unmoved.
Midcaps mostly rose. Premier Oil (LSE: PMO) led the way with a 3.4% gain. Salamander Energy (LSE: SMDR) followed, tacking on 2.3%. Melrose Resources (LSE: MRS) and Soco International (LSE: SIA) added nearly 1%, while Dragon Oil (LSE: DGO) and Heritage Oil (LSE: HOIL) were flat. Dana Petroleum (LSE: DNX) shed less than 1% and JKX Oil & Gas (LSE: JKX) was at the bottom of the pile with a 1.2% loss.
Services companies headed in different directions as while Wood Group (LSE: WG) posted a small gain, Wellstream Holdings (LSE: WSM) declined 1.4%.
Western Europe operating oil and gas company Northern Petroleum (AIM: NOP) and Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) dropped 5.5% and 4% respectively.
Gold and silver pull back as US dollar rebounds
Gold trimmed gains after rising earlier in the day as the US dollar recouped losses on disappointing US GDP revision.
Today’s update showed a downward revision of US Q4 GDP growth from 5.9% to 5.6%, sending stock markets in both the US and Europe down and boosting the safe-haven US dollar, which was in decline against the euro today after European Union leaders came to an agreement on a bailout deal for debt laden Greece.
Gold is seen as a riskier investment alternative and usually moves inversely to the US dollar.
Spot gold retreated to US$1,093/oz after touching US$1,100/oz, while silver improved to US$16.72/oz and platinum dropped to US$1,593/oz.
Major mining stocks were in decline, save for silver producers. Blue chip Fresnillo (LSE: FRES) and peer from FTSE 250 Hochschild Mining (LSE: HOC) added 0.5% and 2.9% respectively.
Gold producer Randgold Resources (LSE: RRS) lost nearly 1%, while midcap Petropavlovsk (LSE: POG) was flat. Platinum miners Lonmin (LSE: LMI) and Aquarius Platinum (LSE: AQP) posted small losses.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) made little headway.
Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) led the juniors with a 7% advance, while Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) and Kazakhstan operating gold producer and copper developer Frontier Mining (AIM: FML) followed with gains of over 4%.
Junior diamond producer Stellar Diamonds (AIM: STEL) and UK-registered China operating copper and gold miner Central China Goldfields (AIM: GGG) headed in the opposite direction, slipping 9.5% and 9% respectively.
Tajikistan operating gold miner Kryso Resources (AIM: KYS) was down 5%, while Commodity asset development company Mercator Gold (AIM: MCR) and Africa operating gold miner GMA Resources (AIM: GMA) lost 4.5%.
Copper and nickel advance
Base metals rose today. Copper and nickel improved US$3.38/lb and US$10.61/lb, while zinc held steady at US$1/lb.
Mining stocks didn’t show much movement today. Anglo American (LSE: AAL),BHP Billiton (LSE: BLT) and Kazakhmys (LSE: KAZ) were flat. Eurasian Natural Resources (LSE: ENRC) and Rio Tinto (LSE: RIO) shed less than 1%, while Vedanta Resources (LSE: VED) and Antofagasta (LSE: ANTO) declined 1% and 1.2%. Xstrata (LSE: XTA) posted a marginal gain.
London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) made little headway.
Iron ore focused investor Red Rock Resources (AIM: RRR) was the top performer in the sector, surging 20%. Copper and nickel explorer Regency Mines (AIM: RGM) and Philippines operating nickel miner Rusina Mining (ASX: RML; AIM: RMLA) rallied 8% and 4.5%.
Finders Resources (AIM: FND) and tantalum concentrate supplier with assets in Mozambique Noventa (AIM: NVTA) slipped 5% and 4% respectively.
Banks, insurance, private equity
Barclays (LSE: BARC) led the banking stocks with a 1.2% gain. HSBC (LSE: HSBA) and Lloyds (LSE: LLOY) lost less than 1%, while Standard Chartered (LSE: STAN) slid 1.6%.
Royal Bank of Scotland (LSE: RBS) was flat.
Insurers didn’t move by much. Legal & General Group (LSE: LGEN) was at the bottom of the sector with a 1% decline. RSA Insurance Group (LSE: RSA) posted a marginal loss, while Admiral Group (LSE: ADM), Aviva (LSE: AV) and Standard Life (LSE: SL) gained less than 1%.
Old Mutual (LSE: OML) and Prudential (LSE: PRU) were unmoved.
Private equity firm 3i (LSE: III) posted a marginal loss.
Small Cap Movers
Other notable movers among the small caps included UK based electrical components producer and supplier Cinpart (AIM: CINP), which rallied 9.5% and stamp collector Staley Gibbons (AIM: SGI), which rose 7.5% after releasing its full year results.
Large and Mid Cap News
AngloGold Ashanti (LSE, ASX: AGG; NYSE: AU) has entered into a definitive JV (joint venture) agreement with l'Office des Mines d'Or de Kilo-Moto (OKIMO) over the development of the Ashanti Goldfields Kilo (AGK) project in the Democratic Republic of Congo (DRC) and the transfer of the exploitation permits to AGK.
Temporary power provider Aggreko (LSE: AGK) has signed a contract with the national utility company of Côte d'Ivoire to provide 70 MW (megawatt) of temporary power fuelled by natural gas worth some €35 million, making it its largest gas fuelled project to date.
Small Cap News
Lo-Q PLC (AIM: LOQ), supplier of virtual queuing systems for theme parks and major attractions, said it has signed renewal agreements with five of its customers to extend their contracts to supply Lo-Q's new flagship VQ2020 queue management system or the Q-txt system.
Shares in Helius Energy PLC (AIM: HEGY) soared today after the alternative energy generator announced it received consent from Department for Energy and Climate Change, for the construction of a 100MWe (MegaWatt electrical) biomass-fuelled power station located at Avonmouth Dock on the Bristol Channel.
Following closing of the latest placing last week, Xcite Energy (TSX-V, AIM: XEL) has received formal notification from three investors today of their respective holdings in the group, which is currently developing the Bentley oilfield in the North Sea.
Kalahari Minerals (AIM: KAH) announced that a major Japanese conglomerate, the ITOCHU Corporation (TYO: 8001), has agreed to acquire a 15% stake in the company. ITOCHU is one of the largest uranium traders in the world, and according to Kalahari, the transaction significantly solidifies and strengthens its shareholder base.
May Gurney Integrated Services PLC (AIM: MAYG) said it has been selected as preferred bidder to deliver a range of services for Torbay Council in a deal worth up to £130 million.
Solomon Gold (AIM: SOLG) said the Newmont joint venture is now moving forward at a faster pace than expected. Despite a slow start to the proposed drilling program - as more geological data was gathered and interpreted -, in just the second year of the agreement, Newmont has decided to spend in excess of A$5 million on exploration.
Herencia Resources (AIM: HER) reported promising high grade results from the first three holes in its current diamond drilling campaign at the Paguanta zinc-lead-silver-gold project in Chile, extending the high-grade Cathedral vein by at least 80 metres to the west of the current resource and confirming a new vein south of Cathedral.
Baobab Resources (AIM: BAO) said it continued to strengthen its foothold as a prominent exploration company in Mozambique during the first half, being focused on the Tete iron-vanadium-titanium project. Tete has been confirmed as a high potential project and Baobab plans to rapidly advance its development during the coming year, with feasibility studies targeted within 12-18 months.
Collectables specialist Stanley Gibbons (AIM: SGI) said it has made substantial progress in the full-year to end-December 2009 and reported 20% year-on-year sales growth to £23.4m while pre-tax profit rose 11% to £4.1m. It also announced that the launch of its rare stamp investment fund is now planned for the second half of 2010.
AIM-listed mineral explorer Baobab Resources (AIM:BAO) owns a number of exploration licences in the southeast-African state of Mozambique. Most notable of these is a large iron ore deposit in the Tete region, where scout drilling recently resumed after the end of the local wet season.
Since ITOCHU Corp (TYO: 8001) announced this morning it is buying a 15% stake in Kalahari Minerals (AIM: KAH), two of Kalahari’ significant shareholders, Emerging Metals (AIM: EML) and Regent Pacific (HKG: 0575), have confirmed that they agreed to sell their entire shareholdings to the major Japanese conglomerate.
http://www.proactiveinvestors.co.uk/companies/news/14931/ftse-100-trims-losses-as-dow-jones-sp-500-and-nasdaq-open-higher-14931.html
Communications group WPP (LSE: WPP) led the blue chips, advancing 2.6%. Commercial property company British Land (LSE: BLND), Cairn Energy (LSE: CNE) and retailer Marks & Spencer (LSE: MKS) added 2%. Credit information group Experian (LSE: EXPN) followed with a gain of nearly 2%. Other commercial property stocks Segro (LSE: SGRO), Liberty International (LSE: LII) and Hammerson (LSE: HMSO) tacked on slightly more than 1%.
Cable & Wireless Communications (LSE: CWC) and Cable & Wireless Worldwide (LSE: CW) were the heaviest fallers among the blue chips with losses of 23% and 7% on their first day of trading on the LSE following the demerger of Cable & Wireless. Power generation company International Power (LSE: IPR) and hedge fund manager Man Group (LSE: EMG) followed with declines of 3.5% and 2.5% respectively.
US stocks opened higher. The Dow Jones Industrial Average and the broader S&P 500 index advanced 0.55%, while the technology heavy NASDAQ composite rose 0.45%.
Commodities
Crude prices were on the rise today with US benchmark crude eclipsing US$81/barrel on the New York Mercantile Exchange (NYMEX).
Oil was lifted by an improved demand outlook amid a rally in European and Asian stock markets and bullish US jobless claims data that showed a steeper than expected decline of 14,000 in initial jobless claims last week to 442,000.
Meanwhile, the euro strengthened today, gainin on the US dollar after European Union leaders agreed on a joint €30 million bailout package with the International Monetary Fund (IMF) for debt-laden Greece, easing worries over its fiscal crisis, which has been weighing on Europe’s single currency for weeks.
However, the deal did not significantly improve the long-term outlook for Greece’s debt situation and the euro’s gains were limited.
A stronger US dollar makes dollar denominated commodities including crude more expensive for holders of other currencies, curbing demand.
Crude prices have been under pressure from inventories reports that were released earlier this week showed a substantial build-up in US stockpiles. US Energy Information Administration (EIA) reported that crude inventories increased by 7.2 mmbbls (million barrels) compared to an expected rise of just 1.7 mmbbls. EIA said that gasoline inventories declined by 2.7 mmbbls, while distillates, which include heating oil, dropped 2.4 mmbbls.
Earlie rin the week, the American Petroleum Institute (API) reported a 7.5 mmbbls rise in crude stockpiles, adding that gasoline stocks fell 81,000 barrels, while distillates declined by 2.5 mmbbls.
May Brent Crude improved to US$80.28/barrel, while US light, sweet crude reached US$81/barrel.
Blue chip oil and gas producers didn’t show much movement today. BG Group (LSE: BG) declined 1.8%, while supermajor BP (LSE: BP) followed with a small loss. Shell (LSE: RDSB) and Tullow Oil (LSE: TLW) were flat. Cairn Energy (LSE: CNE) outperformed its peers, adding less than 1%.
Amec (LSE: AMEC) posted a marginal loss, while fellow oil and gas engineering firm Petrofac (LSE: PFC) was unmoved.
Midcaps mostly rose. Premier Oil (LSE: PMO) led the way with a 3.4% gain. Salamander Energy (LSE: SMDR) followed, tacking on 2.3%. Melrose Resources (LSE: MRS) and Soco International (LSE: SIA) added nearly 1%, while Dragon Oil (LSE: DGO) and Heritage Oil (LSE: HOIL) were flat. Dana Petroleum (LSE: DNX) shed less than 1% and JKX Oil & Gas (LSE: JKX) was at the bottom of the pile with a 1.2% loss.
Services companies headed in different directions as while Wood Group (LSE: WG) posted a small gain, Wellstream Holdings (LSE: WSM) declined 1.4%.
Western Europe operating oil and gas company Northern Petroleum (AIM: NOP) and Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) dropped 5.5% and 4% respectively.
Gold and silver pull back as US dollar rebounds
Gold trimmed gains after rising earlier in the day as the US dollar recouped losses on disappointing US GDP revision.
Today’s update showed a downward revision of US Q4 GDP growth from 5.9% to 5.6%, sending stock markets in both the US and Europe down and boosting the safe-haven US dollar, which was in decline against the euro today after European Union leaders came to an agreement on a bailout deal for debt laden Greece.
Gold is seen as a riskier investment alternative and usually moves inversely to the US dollar.
Spot gold retreated to US$1,093/oz after touching US$1,100/oz, while silver improved to US$16.72/oz and platinum dropped to US$1,593/oz.
Major mining stocks were in decline, save for silver producers. Blue chip Fresnillo (LSE: FRES) and peer from FTSE 250 Hochschild Mining (LSE: HOC) added 0.5% and 2.9% respectively.
Gold producer Randgold Resources (LSE: RRS) lost nearly 1%, while midcap Petropavlovsk (LSE: POG) was flat. Platinum miners Lonmin (LSE: LMI) and Aquarius Platinum (LSE: AQP) posted small losses.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) made little headway.
Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) led the juniors with a 7% advance, while Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) and Kazakhstan operating gold producer and copper developer Frontier Mining (AIM: FML) followed with gains of over 4%.
Junior diamond producer Stellar Diamonds (AIM: STEL) and UK-registered China operating copper and gold miner Central China Goldfields (AIM: GGG) headed in the opposite direction, slipping 9.5% and 9% respectively.
Tajikistan operating gold miner Kryso Resources (AIM: KYS) was down 5%, while Commodity asset development company Mercator Gold (AIM: MCR) and Africa operating gold miner GMA Resources (AIM: GMA) lost 4.5%.
Copper and nickel advance
Base metals rose today. Copper and nickel improved US$3.38/lb and US$10.61/lb, while zinc held steady at US$1/lb.
Mining stocks didn’t show much movement today. Anglo American (LSE: AAL),BHP Billiton (LSE: BLT) and Kazakhmys (LSE: KAZ) were flat. Eurasian Natural Resources (LSE: ENRC) and Rio Tinto (LSE: RIO) shed less than 1%, while Vedanta Resources (LSE: VED) and Antofagasta (LSE: ANTO) declined 1% and 1.2%. Xstrata (LSE: XTA) posted a marginal gain.
London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) made little headway.
Iron ore focused investor Red Rock Resources (AIM: RRR) was the top performer in the sector, surging 20%. Copper and nickel explorer Regency Mines (AIM: RGM) and Philippines operating nickel miner Rusina Mining (ASX: RML; AIM: RMLA) rallied 8% and 4.5%.
Finders Resources (AIM: FND) and tantalum concentrate supplier with assets in Mozambique Noventa (AIM: NVTA) slipped 5% and 4% respectively.
Banks, insurance, private equity
Barclays (LSE: BARC) led the banking stocks with a 1.2% gain. HSBC (LSE: HSBA) and Lloyds (LSE: LLOY) lost less than 1%, while Standard Chartered (LSE: STAN) slid 1.6%.
Royal Bank of Scotland (LSE: RBS) was flat.
Insurers didn’t move by much. Legal & General Group (LSE: LGEN) was at the bottom of the sector with a 1% decline. RSA Insurance Group (LSE: RSA) posted a marginal loss, while Admiral Group (LSE: ADM), Aviva (LSE: AV) and Standard Life (LSE: SL) gained less than 1%.
Old Mutual (LSE: OML) and Prudential (LSE: PRU) were unmoved.
Private equity firm 3i (LSE: III) posted a marginal loss.
Small Cap Movers
Other notable movers among the small caps included UK based electrical components producer and supplier Cinpart (AIM: CINP), which rallied 9.5% and stamp collector Staley Gibbons (AIM: SGI), which rose 7.5% after releasing its full year results.
Large and Mid Cap News
AngloGold Ashanti (LSE, ASX: AGG; NYSE: AU) has entered into a definitive JV (joint venture) agreement with l'Office des Mines d'Or de Kilo-Moto (OKIMO) over the development of the Ashanti Goldfields Kilo (AGK) project in the Democratic Republic of Congo (DRC) and the transfer of the exploitation permits to AGK.
Temporary power provider Aggreko (LSE: AGK) has signed a contract with the national utility company of Côte d'Ivoire to provide 70 MW (megawatt) of temporary power fuelled by natural gas worth some €35 million, making it its largest gas fuelled project to date.
Small Cap News
Lo-Q PLC (AIM: LOQ), supplier of virtual queuing systems for theme parks and major attractions, said it has signed renewal agreements with five of its customers to extend their contracts to supply Lo-Q's new flagship VQ2020 queue management system or the Q-txt system.
Shares in Helius Energy PLC (AIM: HEGY) soared today after the alternative energy generator announced it received consent from Department for Energy and Climate Change, for the construction of a 100MWe (MegaWatt electrical) biomass-fuelled power station located at Avonmouth Dock on the Bristol Channel.
Following closing of the latest placing last week, Xcite Energy (TSX-V, AIM: XEL) has received formal notification from three investors today of their respective holdings in the group, which is currently developing the Bentley oilfield in the North Sea.
Kalahari Minerals (AIM: KAH) announced that a major Japanese conglomerate, the ITOCHU Corporation (TYO: 8001), has agreed to acquire a 15% stake in the company. ITOCHU is one of the largest uranium traders in the world, and according to Kalahari, the transaction significantly solidifies and strengthens its shareholder base.
May Gurney Integrated Services PLC (AIM: MAYG) said it has been selected as preferred bidder to deliver a range of services for Torbay Council in a deal worth up to £130 million.
Solomon Gold (AIM: SOLG) said the Newmont joint venture is now moving forward at a faster pace than expected. Despite a slow start to the proposed drilling program - as more geological data was gathered and interpreted -, in just the second year of the agreement, Newmont has decided to spend in excess of A$5 million on exploration.
Herencia Resources (AIM: HER) reported promising high grade results from the first three holes in its current diamond drilling campaign at the Paguanta zinc-lead-silver-gold project in Chile, extending the high-grade Cathedral vein by at least 80 metres to the west of the current resource and confirming a new vein south of Cathedral.
Baobab Resources (AIM: BAO) said it continued to strengthen its foothold as a prominent exploration company in Mozambique during the first half, being focused on the Tete iron-vanadium-titanium project. Tete has been confirmed as a high potential project and Baobab plans to rapidly advance its development during the coming year, with feasibility studies targeted within 12-18 months.
Collectables specialist Stanley Gibbons (AIM: SGI) said it has made substantial progress in the full-year to end-December 2009 and reported 20% year-on-year sales growth to £23.4m while pre-tax profit rose 11% to £4.1m. It also announced that the launch of its rare stamp investment fund is now planned for the second half of 2010.
AIM-listed mineral explorer Baobab Resources (AIM:BAO) owns a number of exploration licences in the southeast-African state of Mozambique. Most notable of these is a large iron ore deposit in the Tete region, where scout drilling recently resumed after the end of the local wet season.
Since ITOCHU Corp (TYO: 8001) announced this morning it is buying a 15% stake in Kalahari Minerals (AIM: KAH), two of Kalahari’ significant shareholders, Emerging Metals (AIM: EML) and Regent Pacific (HKG: 0575), have confirmed that they agreed to sell their entire shareholdings to the major Japanese conglomerate.
http://www.proactiveinvestors.co.uk/companies/news/14931/ftse-100-trims-losses-as-dow-jones-sp-500-and-nasdaq-open-higher-14931.html
Xcite Energy notified of shareholdings by Fidelity, Ignis and Standard Life
Following closing of the latest placing last week, Xcite Energy (TSX-V, AIM: XEL) has received formal notification from three investors today of their respective holdings in the group, which is currently developing the Bentley oilfield in the North Sea.
Fidelity Investment Services (UK) holds 12 million ordinary shares in Xcite, representing 8.99 percent of the issued and outstanding share capital. Standard Life Investments holds 7.25 million shares, or 5.43 percent. Further, Ignis Investment Services notified Xcite it controls 10 million company shares, equivalent to a 7.49 percent.
Last week Xcite closed its £24.9m (C$38.4m) placing of new ordinary shares, principally to institutional investors, having issued shares at £0.40 per share to investors in the UK and at C$0.62 per share to North American investors. The proceeds will be used in the development of the Bentley field.
"This fund raising represents a significant step forward for the company in the overall achievement of the development plan for the Bentley field”, Xcite Energy chief executive Richard Smith had commented. “Now that we have the finance in place, we have the resources to drill the 9/3b-R well expected to commence during the summer of 2010".
With the support of its development partners, collectively known as the Bentley Alliance, Xcite has been making rapid progress in the development of the Bentley field. The planned pre-development well represents the company’s next step towards full production following the BP (LSE: BP) off-take agreement signed in January 2010.
The international oil major’s BPOI unit will sell the crude from the Bentley field in return for an incentive-based fee per barrel. The off-take fee is directly related to the realised price achieved by BPOI for the Bentley crude oil in relation to the prevailing Brent crude price, thus incentivising BPOI to maximise the price per barrel achieved for XER by minimising the discount to Brent crude.
Furthermore the FTSE100 constituent is also supporting the commercial development of the Bentley oilfield. BPOI will procure US$20 million of financing from a commercial bank for Xcite and provide credit support from BP once Xcite moves to full field development.
http://www.proactiveinvestors.co.uk/companies/news/14928/xcite-energy-notified-of-shareholdings-by-fidelity-ignis-and-standard-life--14928.html
Fidelity Investment Services (UK) holds 12 million ordinary shares in Xcite, representing 8.99 percent of the issued and outstanding share capital. Standard Life Investments holds 7.25 million shares, or 5.43 percent. Further, Ignis Investment Services notified Xcite it controls 10 million company shares, equivalent to a 7.49 percent.
Last week Xcite closed its £24.9m (C$38.4m) placing of new ordinary shares, principally to institutional investors, having issued shares at £0.40 per share to investors in the UK and at C$0.62 per share to North American investors. The proceeds will be used in the development of the Bentley field.
"This fund raising represents a significant step forward for the company in the overall achievement of the development plan for the Bentley field”, Xcite Energy chief executive Richard Smith had commented. “Now that we have the finance in place, we have the resources to drill the 9/3b-R well expected to commence during the summer of 2010".
With the support of its development partners, collectively known as the Bentley Alliance, Xcite has been making rapid progress in the development of the Bentley field. The planned pre-development well represents the company’s next step towards full production following the BP (LSE: BP) off-take agreement signed in January 2010.
The international oil major’s BPOI unit will sell the crude from the Bentley field in return for an incentive-based fee per barrel. The off-take fee is directly related to the realised price achieved by BPOI for the Bentley crude oil in relation to the prevailing Brent crude price, thus incentivising BPOI to maximise the price per barrel achieved for XER by minimising the discount to Brent crude.
Furthermore the FTSE100 constituent is also supporting the commercial development of the Bentley oilfield. BPOI will procure US$20 million of financing from a commercial bank for Xcite and provide credit support from BP once Xcite moves to full field development.
http://www.proactiveinvestors.co.uk/companies/news/14928/xcite-energy-notified-of-shareholdings-by-fidelity-ignis-and-standard-life--14928.html
Gold trims gains as euro retreats against US dollar after US GDP revision
Gold trimmed gains after rising earlier in the day as the US dollar recouped losses on disappointing US GDP revision.
Today’s update showed a downward revision of US Q4 GDP growth from 5.9% to 5.6%, sending stock markets in both the US and Europe down and boosting the safe-haven US dollar, which was in decline against the euro today after European Union leaders came to an agreement on a bailout deal for debt laden Greece.
Euro zone states and the International Monetary Fund (IMF) agreed to put together a joint €30 million package to help Greece meet tackle its debt problem. This followed a week of arguments between the European Commission and Germany, which was unwilling to participate in any financial aid packages for the troubled country.
However, the plan did not substantially improve the long-term outlook for Greece’s debt crisis and limited the euro’s gains.
Gold is seen as a riskier investment alternative and usually moves inversely to the US dollar.
Spot gold retreated to US$1,093/oz after touching US$1,100/oz, while silver improved to US$16.72/oz and platinum dropped to US$1,593/oz.
Major mining stocks were in decline, save for silver producers. Blue chip Fresnillo (LSE: FRES) and peer from FTSE 250 Hochschild Mining (LSE: HOC) added 0.5% and 2.9% respectively.
Gold producer Randgold Resources (LSE: RRS) lost nearly 1%, while midcap Petropavlovsk (LSE: POG) was flat. Platinum miners Lonmin (LSE: LMI) and Aquarius Platinum (LSE: AQP) posted small losses.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) made little headway.
Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) led the juniors with a 7% advance, while Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) and Kazakhstan operating gold producer and copper developer Frontier Mining (AIM: FML) followed with gains of over 4%.
Junior diamond producer Stellar Diamonds (AIM: STEL) and UK-registered China operating copper and gold miner Central China Goldfields (AIM: GGG) headed in the opposite direction, slipping 9.5% and 9% respectively.
Tajikistan operating gold miner Kryso Resources (AIM: KYS) was down 5%, while Commodity asset development company Mercator Gold (AIM: MCR) and Africa operating gold miner GMA Resources (AIM: GMA) lost 4.5%.
http://www.proactiveinvestors.co.uk/companies/news/14927/gold-trims-gains-as-euro-retreats-against-us-dollar-after-us-gdp-revision-14927.html
Today’s update showed a downward revision of US Q4 GDP growth from 5.9% to 5.6%, sending stock markets in both the US and Europe down and boosting the safe-haven US dollar, which was in decline against the euro today after European Union leaders came to an agreement on a bailout deal for debt laden Greece.
Euro zone states and the International Monetary Fund (IMF) agreed to put together a joint €30 million package to help Greece meet tackle its debt problem. This followed a week of arguments between the European Commission and Germany, which was unwilling to participate in any financial aid packages for the troubled country.
However, the plan did not substantially improve the long-term outlook for Greece’s debt crisis and limited the euro’s gains.
Gold is seen as a riskier investment alternative and usually moves inversely to the US dollar.
Spot gold retreated to US$1,093/oz after touching US$1,100/oz, while silver improved to US$16.72/oz and platinum dropped to US$1,593/oz.
Major mining stocks were in decline, save for silver producers. Blue chip Fresnillo (LSE: FRES) and peer from FTSE 250 Hochschild Mining (LSE: HOC) added 0.5% and 2.9% respectively.
Gold producer Randgold Resources (LSE: RRS) lost nearly 1%, while midcap Petropavlovsk (LSE: POG) was flat. Platinum miners Lonmin (LSE: LMI) and Aquarius Platinum (LSE: AQP) posted small losses.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) made little headway.
Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) led the juniors with a 7% advance, while Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) and Kazakhstan operating gold producer and copper developer Frontier Mining (AIM: FML) followed with gains of over 4%.
Junior diamond producer Stellar Diamonds (AIM: STEL) and UK-registered China operating copper and gold miner Central China Goldfields (AIM: GGG) headed in the opposite direction, slipping 9.5% and 9% respectively.
Tajikistan operating gold miner Kryso Resources (AIM: KYS) was down 5%, while Commodity asset development company Mercator Gold (AIM: MCR) and Africa operating gold miner GMA Resources (AIM: GMA) lost 4.5%.
http://www.proactiveinvestors.co.uk/companies/news/14927/gold-trims-gains-as-euro-retreats-against-us-dollar-after-us-gdp-revision-14927.html
Helius Energy soars after UK govt grants consent for Avonmouth biomass power plant
Shares in Helius Energy PLC (AIM: HEGY) soared today after the alternative energy generator announced it received consent from Department for Energy and Climate Change, for the construction of a 100MWe (MegaWatt electrical) biomass-fuelled power station located at Avonmouth Dock on the Bristol Channel.
Helius stock rose after the news was released at midday and was still trading nearly 16 percent higher in early afternoon deals.
The power station will produce enough renewable electricity for around 200,000 homes, and will save over 720,000 tonnes of carbon dioxide a year when compared to a similarly sized coal-fired power station, it said in a statement. The electricity produced at the plant will be fed into the local electricity grid, and Helius has already secured grid access rights.
The biomass power plant will require up to 850,000 tonnes of sustainably sourced feedstock each year, primarily wood-based material. Construction of the plant is expected to start following conclusion of the engineering procurement programme.
Helius develops, installs and operates biomass-fired renewable electricity generation plants at sizes ranging from five megawatts to 100MW. The company is currently involved in several projects.
The company successfully developed a 65MWe power plant at Stallingborough, South Humberside, which was sold at pre-construction stage to RWE Innogy. Helius also has a 7.2MWe project in Morayshire, centred on distillery residues for fuel.
The 100MWe Avonmouth project represents the latest development in the Helius project pipeline. The company is currently considering a number of options to progress the scheme, including the participation of industrial and financial partners.
http://www.proactiveinvestors.co.uk/companies/news/14924/helius-energy-soars-after-uk-govt-grants-consent-for-avonmouth-biomass-power-plant-14924.html
Helius stock rose after the news was released at midday and was still trading nearly 16 percent higher in early afternoon deals.
The power station will produce enough renewable electricity for around 200,000 homes, and will save over 720,000 tonnes of carbon dioxide a year when compared to a similarly sized coal-fired power station, it said in a statement. The electricity produced at the plant will be fed into the local electricity grid, and Helius has already secured grid access rights.
The biomass power plant will require up to 850,000 tonnes of sustainably sourced feedstock each year, primarily wood-based material. Construction of the plant is expected to start following conclusion of the engineering procurement programme.
Helius develops, installs and operates biomass-fired renewable electricity generation plants at sizes ranging from five megawatts to 100MW. The company is currently involved in several projects.
The company successfully developed a 65MWe power plant at Stallingborough, South Humberside, which was sold at pre-construction stage to RWE Innogy. Helius also has a 7.2MWe project in Morayshire, centred on distillery residues for fuel.
The 100MWe Avonmouth project represents the latest development in the Helius project pipeline. The company is currently considering a number of options to progress the scheme, including the participation of industrial and financial partners.
http://www.proactiveinvestors.co.uk/companies/news/14924/helius-energy-soars-after-uk-govt-grants-consent-for-avonmouth-biomass-power-plant-14924.html
Aggreko wins €35 mln deal from Cote d’Ivoire utility company
Temporary power provider Aggreko (LSE: AGK) has signed a contract with the national utility company of Côte d'Ivoire to provide 70 MW (megawatt) of temporary power fuelled by natural gas worth some €35 million, making it its largest gas fuelled project to date.
The gas will support the country’s national grid for the next two years.
The deal, which is Aggreko’s first in Cote d’Ivoire, is expected to help alleviate power cuts and stabilise the national power grid, following recent plant breakdowns. As the requirement is urgent, Aggreko will begin mobilizing equipment to the country as soon as it receives contractual guarantees and protection, expecting to have the power plant operational in May.
The company started investing in gas-fuelled power generation four years ago and currently has a fleet of over 250 MW.
“Gas is a cleaner, and often cheaper, fuel than diesel, but historically gas plants have taken many months to construct. Due to our investment in designing and packaging standardised power plants, we are proving that it is possible to provide cost-effective utility-scale gas power solutions in a matter of weeks,” said chief executive of Aggreko Rupert Soames.
Aggreko is currently supplying over 1,000 MW of power across 17 countries in Africa.
http://www.proactiveinvestors.co.uk/companies/news/14921/aggreko-wins-35-mln-deal-from-cote-divoire-utility-company-14921.html
The gas will support the country’s national grid for the next two years.
The deal, which is Aggreko’s first in Cote d’Ivoire, is expected to help alleviate power cuts and stabilise the national power grid, following recent plant breakdowns. As the requirement is urgent, Aggreko will begin mobilizing equipment to the country as soon as it receives contractual guarantees and protection, expecting to have the power plant operational in May.
The company started investing in gas-fuelled power generation four years ago and currently has a fleet of over 250 MW.
“Gas is a cleaner, and often cheaper, fuel than diesel, but historically gas plants have taken many months to construct. Due to our investment in designing and packaging standardised power plants, we are proving that it is possible to provide cost-effective utility-scale gas power solutions in a matter of weeks,” said chief executive of Aggreko Rupert Soames.
Aggreko is currently supplying over 1,000 MW of power across 17 countries in Africa.
http://www.proactiveinvestors.co.uk/companies/news/14921/aggreko-wins-35-mln-deal-from-cote-divoire-utility-company-14921.html
Crude reaches $81 on bullish US data, stronger euro
Crude prices were on the rise today with US benchmark crude eclipsing US$81/barrel on the New York Mercantile Exchange (NYMEX).
Oil was lifted by an improved demand outlook amid a rally in European and Asian stock markets and bullish US jobless claims data that showed a steeper than expected decline of 14,000 in initial jobless claims last week to 442,000.
Meanwhile, the euro strengthened today, gainin on the US dollar after European Union leaders agreed on a joint €30 million bailout package with the International Monetary Fund (IMF) for debt-laden Greece, easing worries over its fiscal crisis, which has been weighing on Europe’s single currency for weeks.
However, the deal did not significantly improve the long-term outlook for Greece’s debt situation and the euro’s gains were limited.
A stronger US dollar makes dollar denominated commodities including crude more expensive for holders of other currencies, curbing demand.
Crude prices have been under pressure from inventories reports that were released earlier this week showed a substantial build-up in US stockpiles. US Energy Information Administration (EIA) reported that crude inventories increased by 7.2 mmbbls (million barrels) compared to an expected rise of just 1.7 mmbbls. EIA said that gasoline inventories declined by 2.7 mmbbls, while distillates, which include heating oil, dropped 2.4 mmbbls.
Earlie rin the week, the American Petroleum Institute (API) reported a 7.5 mmbbls rise in crude stockpiles, adding that gasoline stocks fell 81,000 barrels, while distillates declined by 2.5 mmbbls.
May Brent Crude improved to US$80.28/barrel, while US light, sweet crude reached US$81/barrel.
Blue chip oil and gas producers didn’t show much movement today. BG Group (LSE: BG) declined 1.8%, while supermajor BP (LSE: BP) followed with a small loss. Shell (LSE: RDSB) and Tullow Oil (LSE: TLW) were flat. Cairn Energy (LSE: CNE) outperformed its peers, adding less than 1%.
Amec (LSE: AMEC) posted a marginal loss, while fellow oil and gas engineering firm Petrofac (LSE: PFC) was unmoved.
Midcaps mostly rose. Premier Oil (LSE: PMO) led the way with a 3.4% gain. Salamander Energy (LSE: SMDR) followed, tacking on 2.3%. Melrose Resources (LSE: MRS) and Soco International (LSE: SIA) added nearly 1%, while Dragon Oil (LSE: DGO) and Heritage Oil (LSE: HOIL) were flat. Dana Petroleum (LSE: DNX) shed less than 1% and JKX Oil & Gas (LSE: JKX) was at the bottom of the pile with a 1.2% loss.
Services companies headed in different directions as while Wood Group (LSE: WG) posted a small gain, Wellstream Holdings (LSE: WSM) declined 1.4%.
Western Europe operating oil and gas company Northern Petroleum (AIM: NOP) and Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) dropped 5.5% and 4% respectively.
http://www.proactiveinvestors.co.uk/companies/news/14922/crude-reaches-81-on-bullish-us-data-stronger-euro-14922.html
Oil was lifted by an improved demand outlook amid a rally in European and Asian stock markets and bullish US jobless claims data that showed a steeper than expected decline of 14,000 in initial jobless claims last week to 442,000.
Meanwhile, the euro strengthened today, gainin on the US dollar after European Union leaders agreed on a joint €30 million bailout package with the International Monetary Fund (IMF) for debt-laden Greece, easing worries over its fiscal crisis, which has been weighing on Europe’s single currency for weeks.
However, the deal did not significantly improve the long-term outlook for Greece’s debt situation and the euro’s gains were limited.
A stronger US dollar makes dollar denominated commodities including crude more expensive for holders of other currencies, curbing demand.
Crude prices have been under pressure from inventories reports that were released earlier this week showed a substantial build-up in US stockpiles. US Energy Information Administration (EIA) reported that crude inventories increased by 7.2 mmbbls (million barrels) compared to an expected rise of just 1.7 mmbbls. EIA said that gasoline inventories declined by 2.7 mmbbls, while distillates, which include heating oil, dropped 2.4 mmbbls.
Earlie rin the week, the American Petroleum Institute (API) reported a 7.5 mmbbls rise in crude stockpiles, adding that gasoline stocks fell 81,000 barrels, while distillates declined by 2.5 mmbbls.
May Brent Crude improved to US$80.28/barrel, while US light, sweet crude reached US$81/barrel.
Blue chip oil and gas producers didn’t show much movement today. BG Group (LSE: BG) declined 1.8%, while supermajor BP (LSE: BP) followed with a small loss. Shell (LSE: RDSB) and Tullow Oil (LSE: TLW) were flat. Cairn Energy (LSE: CNE) outperformed its peers, adding less than 1%.
Amec (LSE: AMEC) posted a marginal loss, while fellow oil and gas engineering firm Petrofac (LSE: PFC) was unmoved.
Midcaps mostly rose. Premier Oil (LSE: PMO) led the way with a 3.4% gain. Salamander Energy (LSE: SMDR) followed, tacking on 2.3%. Melrose Resources (LSE: MRS) and Soco International (LSE: SIA) added nearly 1%, while Dragon Oil (LSE: DGO) and Heritage Oil (LSE: HOIL) were flat. Dana Petroleum (LSE: DNX) shed less than 1% and JKX Oil & Gas (LSE: JKX) was at the bottom of the pile with a 1.2% loss.
Services companies headed in different directions as while Wood Group (LSE: WG) posted a small gain, Wellstream Holdings (LSE: WSM) declined 1.4%.
Western Europe operating oil and gas company Northern Petroleum (AIM: NOP) and Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) dropped 5.5% and 4% respectively.
http://www.proactiveinvestors.co.uk/companies/news/14922/crude-reaches-81-on-bullish-us-data-stronger-euro-14922.html
Baobab Resources is rapidly advancing Tete project towards feasibility
Baobab Resources (AIM: BAO) said it continued to strengthen its foothold as a prominent exploration company in Mozambique during the first half, being focused on the Tete iron-vanadium-titanium project. Tete has been confirmed as a high potential project and Baobab plans to rapidly advance its development during the coming year, with feasibility studies targeted within 12-18 months.
On London’s AIM market, Baobab’s shares were up 7.8 percent in midday trade.
In September 2009, Baobab completed of the project’s maiden JORC Inferred Resource of 47.7Mt, covering a 500m portion of the 8km long Massamba Group trend. The company also estimated a 400 - 700Mt Exploration Target for the greater Massamba Group area of the project.
The Tete project contains two areas of magnetite-ilmenite mineralisation, with the Singore area to the south and the Massamba Group trend in the north. The company’s activities in 2009 were focused on the Massamba Group area. The 8km long Massamba Group is composed of five prospects including Chitongue Grande and Pequeno, Caangua, Chimbala and South Zone.
On its outlook for the period ahead, Baobab said the next cycle of exploration activities will include a 12,000m diamond and reverse circulation (RC) scout drilling programme on the Chimbala and South Zone prospects to improve confidence. Furthermore, the company plans to follow up ‘Priority 1’ areas with step-out resource drilling, targeting 300Mt of possible resources. In the Singoe area, the preliminary assessment of high priority aeromagnetic targets is also planned.
Metallurgical test work and market studies will continue to determine optimal process flow. Scoping studies are ongoing and the company plans to begin preliminary negotiations with government departments, suppliers, end users and key stake holders.
Baobab stated that 2010 will be an exciting year, as it is fully funded to complete planned scout drilling and metallurgical campaigns. The current market sentiment and longer term iron ore and related metals forecasts are positive, making the bulk commodity space an exciting arena in which to be working, Baobab said.
Diamond drilling began on the Chitongue Grande prospect in April 2009, with 15 holes completed totalling 3,092m along a strike length of approximately 500m. Subsequently, Baobab commissioned independent consultants, Coffey Mining, to complete a resource estimate based on the completed drilling programme. In September, the company announced the maiden JORC resource estimate, of 47.7 million tonnes inferred mineral resource with an average concentrate of 63.7 percent iron.
At the South Zone, Baobab said that detailed mapping during November 2009 further resolved the geological parameters of the prospect and the mineralisation is similar to that observed in the Chitongue Grande drill core.
While the Massamba Group remains the focus of the 2010 drilling campaign, Baobab's technical team will be rapidly developing the knowledge base at Singore with the view to targeting scout drill holes as soon as practicable. In November and December 2009, the company also began reconnaissance field investigations of the Singore East area. According to Baobab, the reconnaissance work at Singore East is particularly encouraging as it has opened up highly prospective, virgin exploration ground close to the area of core activity.
Baobab carried out two separate fund raisings in the period, during August and November, raising a total of £3.28m. For the six months ended 31 December 2009, the company reported a loss of £786,985, compared with £848,572 in the comparative period of 2008.
http://www.proactiveinvestors.co.uk/companies/news/14920/baobab-resources-is-rapidly-advancing-tete-project-towards-feasibility-14920.html
On London’s AIM market, Baobab’s shares were up 7.8 percent in midday trade.
In September 2009, Baobab completed of the project’s maiden JORC Inferred Resource of 47.7Mt, covering a 500m portion of the 8km long Massamba Group trend. The company also estimated a 400 - 700Mt Exploration Target for the greater Massamba Group area of the project.
The Tete project contains two areas of magnetite-ilmenite mineralisation, with the Singore area to the south and the Massamba Group trend in the north. The company’s activities in 2009 were focused on the Massamba Group area. The 8km long Massamba Group is composed of five prospects including Chitongue Grande and Pequeno, Caangua, Chimbala and South Zone.
On its outlook for the period ahead, Baobab said the next cycle of exploration activities will include a 12,000m diamond and reverse circulation (RC) scout drilling programme on the Chimbala and South Zone prospects to improve confidence. Furthermore, the company plans to follow up ‘Priority 1’ areas with step-out resource drilling, targeting 300Mt of possible resources. In the Singoe area, the preliminary assessment of high priority aeromagnetic targets is also planned.
Metallurgical test work and market studies will continue to determine optimal process flow. Scoping studies are ongoing and the company plans to begin preliminary negotiations with government departments, suppliers, end users and key stake holders.
Baobab stated that 2010 will be an exciting year, as it is fully funded to complete planned scout drilling and metallurgical campaigns. The current market sentiment and longer term iron ore and related metals forecasts are positive, making the bulk commodity space an exciting arena in which to be working, Baobab said.
Diamond drilling began on the Chitongue Grande prospect in April 2009, with 15 holes completed totalling 3,092m along a strike length of approximately 500m. Subsequently, Baobab commissioned independent consultants, Coffey Mining, to complete a resource estimate based on the completed drilling programme. In September, the company announced the maiden JORC resource estimate, of 47.7 million tonnes inferred mineral resource with an average concentrate of 63.7 percent iron.
At the South Zone, Baobab said that detailed mapping during November 2009 further resolved the geological parameters of the prospect and the mineralisation is similar to that observed in the Chitongue Grande drill core.
While the Massamba Group remains the focus of the 2010 drilling campaign, Baobab's technical team will be rapidly developing the knowledge base at Singore with the view to targeting scout drill holes as soon as practicable. In November and December 2009, the company also began reconnaissance field investigations of the Singore East area. According to Baobab, the reconnaissance work at Singore East is particularly encouraging as it has opened up highly prospective, virgin exploration ground close to the area of core activity.
Baobab carried out two separate fund raisings in the period, during August and November, raising a total of £3.28m. For the six months ended 31 December 2009, the company reported a loss of £786,985, compared with £848,572 in the comparative period of 2008.
http://www.proactiveinvestors.co.uk/companies/news/14920/baobab-resources-is-rapidly-advancing-tete-project-towards-feasibility-14920.html
AngloGold Ashanti in JV deal to develop AGK gold project in DR Congo
AngloGold Ashanti (LSE, ASX: AGG; NYSE: AU) has entered into a definitive JV (joint venture) agreement with l'Office des Mines d'Or de Kilo-Moto (OKIMO) over the development of the Ashanti Goldfields Kilo (AGK) project in the Democratic Republic of Congo (DRC) and the transfer of the exploitation permits to AGK.
Under the agreement, AngloGold and OKIMO will jointly develop the AGK project through the joint company AGK, in which AngloGold will hold an 86.22% interest and OKIMO the remaining 13.78%. The exploitation permits cover some 6,000 sq km (square kilometres) in the Ituri district in the north-eastern DRC, including the Mongbwalu project, where a mineral resource of some 3 Moz (million ounces) has been identified by previous exploration work with further exploration and feasibility studies currently taking place.
“This agreement allows us to move forward with an enormously prospective exploration programme from which we expect to develop another world class gold project,” said chief executive of AngloGold Ashanti Mark Cutifani.
AGK has agreed to return about 30% of the project area to OKIMO through greenfields exploration programs that are planned throughout the AGK project area. AngloGold will also have the right to explore an area of 121 sq km around the towns of Bambu and Nizi, though it will not be included in the AGK project.
Should AngloGold Ashanti identify deposits having an inferred mineral resource of more than 1.5 Moz, such deposits will be developed in terms of a separate JV agreement.
http://www.proactiveinvestors.co.uk/companies/news/14918/anglogold-ashanti-in-jv-deal-to-develop-agk-gold-project-in-dr-congo-14918.html
Under the agreement, AngloGold and OKIMO will jointly develop the AGK project through the joint company AGK, in which AngloGold will hold an 86.22% interest and OKIMO the remaining 13.78%. The exploitation permits cover some 6,000 sq km (square kilometres) in the Ituri district in the north-eastern DRC, including the Mongbwalu project, where a mineral resource of some 3 Moz (million ounces) has been identified by previous exploration work with further exploration and feasibility studies currently taking place.
“This agreement allows us to move forward with an enormously prospective exploration programme from which we expect to develop another world class gold project,” said chief executive of AngloGold Ashanti Mark Cutifani.
AGK has agreed to return about 30% of the project area to OKIMO through greenfields exploration programs that are planned throughout the AGK project area. AngloGold will also have the right to explore an area of 121 sq km around the towns of Bambu and Nizi, though it will not be included in the AGK project.
Should AngloGold Ashanti identify deposits having an inferred mineral resource of more than 1.5 Moz, such deposits will be developed in terms of a separate JV agreement.
http://www.proactiveinvestors.co.uk/companies/news/14918/anglogold-ashanti-in-jv-deal-to-develop-agk-gold-project-in-dr-congo-14918.html
Herencia Resources says drilling at Paguanta confirms new vein and extends high-grade Cathedral vein
Herencia Resources (AIM: HER) reported promising high grade results from the first three holes in its current diamond drilling campaign at the Paguanta zinc-lead-silver-gold project in Chile, extending the high-grade Cathedral vein by at least 80 metres to the west of the current resource and confirming a new vein south of Cathedral.
Assay results for the first two holes confirm the presence of a new vein, and included an intersection of 10.5 metres at 5.13% zinc, 0.97% lead, 63.4 g/t (grammes per tonne) silver and 0.27 g/t gold including 2.17 metres at 17.62% zinc, 3.27% lead, 224 g/t silver and 1.08 g/t gold and 3.5 metres grading 1.81% zinc, 0.61% lead, 30.15 g/t silver and 0.36 g/t gold from 158.75 metres from hole PTDD035.
Hole PTDD036 intersected 3.0 metes at 2.05% zinc, 0.83% lead, 41 g/t silver and 0.19 g/t gold from 139.8 metres including 1 metre at 3.56% zinc, 0.92% lead, 55.9g/t silver and 0.45g/t gold including 0.25 metres at 8.37% zinc, 5.01% lead, 193g/t silver and 0.36 g/t gold.
These results coincided with those from diamond drill hole PTDD031, which also intersected the new vein and reported grades of 2 metres at 11.87% zinc, 5.83% lead, 327 g/t silver and 0.34 g/t and 6 metres at 3.61% zinc, 1.17% lead, 57.6 g/t silver and 0.66 g/t gold from 124.5 metres including 1.5 metres at 7.5% zinc, 2.50% lead, 113 g/t silver and 1.59 g/t gold.
Herencia said that as hole PTDD036 was terminated in mineralisation, potential exists to further extend the zone.
Results from the third hole, PTDD37, the first to target a western extension of the Cathedral vein, have confirmed that mineralisation continues at least 80m to the west of the current resource, and that high grades are again in evidence. The best intercept returned 5 metres at 8.25% zinc, 0.19% lead, 25.1 g/t silver and 0.52 g/t gold from 177 metres including 2 metres at 16.5% zinc, 0.18% lead, 38.3 g/t silver and 0.91 g/t gold.
“We are pleased to see mineralisation being confirmed in the new vein and to see continuing high grades being achieved. Extending the Cathedral vein was always the main goal for this program so intersecting high grade mineralisation in the first hole is a great result. We continue to note the consistent presence of gold mineralisation in all the Paguanta veins which bodes well for future Project economics. Whilst early days, the opportunity to expand the current mineral resource estimate appears likely,” said Managing Director of Herencia Resources Michael Bohm.
The program is on schedule to deliver assay results by June 2010 with an update to the company’s mineral resource estimate expected by mid-2010.
Drilling continues, and is still focusing on extending the Cathedral vein.
Last week, the company announced it has has decided to assay all samples from the current 2010 diamond drill program at Paguanta for gold in addition to assaying for base metals. After the majority of holes within the existing resource envelope intersected gold mineralisation, the company is seeing growing potential for gold credits to enhance future project economics.
While the focus will remain on zinc, lead and silver, Herencia is encouraged by the obvious potential to enhance the economics, as the recent assay results have now confirmed that over 80% of holes drilled within the existing resource envelope at Paguanta have reported gold mineralisation.
The project currently has an indicated and inferred mineral resource of 3.15 Mt at 3.9% zinc, 1.3% lead and 74 g/t silver including a higher grade component of 1.01 Mt at 6.6% zinc, 2.2% lead and 119pm silver.
The company has recently raised £1.37 million through an issue of 250 million new shares for Paguanta and its adjacent La Rosa porphyry-copper prospect.
Shares in the company were up 3.6% on the news by midday.
http://www.proactiveinvestors.co.uk/companies/news/14917/herencia-resources-says-drilling-at-paguanta-confirms-new-vein-and-extends-high-grade-cathedral-vein-14917.html
Assay results for the first two holes confirm the presence of a new vein, and included an intersection of 10.5 metres at 5.13% zinc, 0.97% lead, 63.4 g/t (grammes per tonne) silver and 0.27 g/t gold including 2.17 metres at 17.62% zinc, 3.27% lead, 224 g/t silver and 1.08 g/t gold and 3.5 metres grading 1.81% zinc, 0.61% lead, 30.15 g/t silver and 0.36 g/t gold from 158.75 metres from hole PTDD035.
Hole PTDD036 intersected 3.0 metes at 2.05% zinc, 0.83% lead, 41 g/t silver and 0.19 g/t gold from 139.8 metres including 1 metre at 3.56% zinc, 0.92% lead, 55.9g/t silver and 0.45g/t gold including 0.25 metres at 8.37% zinc, 5.01% lead, 193g/t silver and 0.36 g/t gold.
These results coincided with those from diamond drill hole PTDD031, which also intersected the new vein and reported grades of 2 metres at 11.87% zinc, 5.83% lead, 327 g/t silver and 0.34 g/t and 6 metres at 3.61% zinc, 1.17% lead, 57.6 g/t silver and 0.66 g/t gold from 124.5 metres including 1.5 metres at 7.5% zinc, 2.50% lead, 113 g/t silver and 1.59 g/t gold.
Herencia said that as hole PTDD036 was terminated in mineralisation, potential exists to further extend the zone.
Results from the third hole, PTDD37, the first to target a western extension of the Cathedral vein, have confirmed that mineralisation continues at least 80m to the west of the current resource, and that high grades are again in evidence. The best intercept returned 5 metres at 8.25% zinc, 0.19% lead, 25.1 g/t silver and 0.52 g/t gold from 177 metres including 2 metres at 16.5% zinc, 0.18% lead, 38.3 g/t silver and 0.91 g/t gold.
“We are pleased to see mineralisation being confirmed in the new vein and to see continuing high grades being achieved. Extending the Cathedral vein was always the main goal for this program so intersecting high grade mineralisation in the first hole is a great result. We continue to note the consistent presence of gold mineralisation in all the Paguanta veins which bodes well for future Project economics. Whilst early days, the opportunity to expand the current mineral resource estimate appears likely,” said Managing Director of Herencia Resources Michael Bohm.
The program is on schedule to deliver assay results by June 2010 with an update to the company’s mineral resource estimate expected by mid-2010.
Drilling continues, and is still focusing on extending the Cathedral vein.
Last week, the company announced it has has decided to assay all samples from the current 2010 diamond drill program at Paguanta for gold in addition to assaying for base metals. After the majority of holes within the existing resource envelope intersected gold mineralisation, the company is seeing growing potential for gold credits to enhance future project economics.
While the focus will remain on zinc, lead and silver, Herencia is encouraged by the obvious potential to enhance the economics, as the recent assay results have now confirmed that over 80% of holes drilled within the existing resource envelope at Paguanta have reported gold mineralisation.
The project currently has an indicated and inferred mineral resource of 3.15 Mt at 3.9% zinc, 1.3% lead and 74 g/t silver including a higher grade component of 1.01 Mt at 6.6% zinc, 2.2% lead and 119pm silver.
The company has recently raised £1.37 million through an issue of 250 million new shares for Paguanta and its adjacent La Rosa porphyry-copper prospect.
Shares in the company were up 3.6% on the news by midday.
http://www.proactiveinvestors.co.uk/companies/news/14917/herencia-resources-says-drilling-at-paguanta-confirms-new-vein-and-extends-high-grade-cathedral-vein-14917.html
Solomon Gold says Newmont JV progresses faster than expected, plans Fauro drilling in Q2
Solomon Gold (AIM: SOLG) said the Newmont joint venture is now moving forward at a faster pace than expected. Despite a slow start to the proposed drilling program - as more geological data was gathered and interpreted -, in just the second year of the agreement, Newmont has decided to spend in excess of A$5 million on exploration.
Solomon is confident the obstacles and delays to the planned drilling program have now been either removed or addressed, and it looks forward to the generation of results at a faster pace in 2010.
The JV agreement to secure financial and technical backing of Newmont Mining Corp’s (NYSE: NEM) subsidiary Newmont Ventures Limited was part of Solomon’s strategy of lowering its reliance on the exploration program on Guadalcanal Island in the Solomon Islands.
Newmont Mining is earning up to 51% in the project through expending US$6 million over three years, with an option to increase its stake to 70% thereafter by expending a further US$6 million within 2 years.
The company has also published its financial results for the six months to 31 December 2009, reporting a loss of A$0.91 million compared to A$0.45 million for the equivalent period of the previous year, which was a result of higher administrative expenses, which rose from A$0.5 million to A$0.73 million, and an acquisition cost of A$0.33 million.
In late 2009, the company finalized terms for the acquisition of Acapulco Mining, which holds extensive tenements over a large project area in and around Mt Perry and which sits only 15 km (kilometres) from Lihir Gold's Mt Rawdon mine with a 1 million oz resource producing 100,000 oz pa (ounces per annum) of gold in Queensland. The second acquisition of the year was for Central Minerals, which holds exploration licences covering a huge area along the eastern edge of the Bowen Basin in Central Queensland.
Both Queensland projects acquired are 100% owned and operated by Solomon Gold, which has set out a six month exploration plan and budget for the assets with the intention of defining a resource and bringing it into production as soon as practicable.
Solomon Gold was granted an exploration licence in November 2009 over a highly prospective area on Fauro Island, where the company identified gold contents between two and six times the levels found in highly anomalous samples on its project on the main island of Solomon Islands, Guadalcanal. Samples taken at the time showed gold values of up to 169 g/t (grammes per tonne). An airborne magnetic and electromagnetic survey over the area is currently underway with a drill program expected to commence in Q2 2010 to test anomalies identified.
Solomon said the Queensland acquisitions and the development of the Fauro island project was meant to de-risk and diversify the company’s assets.
http://www.proactiveinvestors.co.uk/companies/news/14891/solomon-gold-says-newmont-jv-progresses-faster-than-expected-plans-fauro-drilling-in-q2-14891.html
Solomon is confident the obstacles and delays to the planned drilling program have now been either removed or addressed, and it looks forward to the generation of results at a faster pace in 2010.
The JV agreement to secure financial and technical backing of Newmont Mining Corp’s (NYSE: NEM) subsidiary Newmont Ventures Limited was part of Solomon’s strategy of lowering its reliance on the exploration program on Guadalcanal Island in the Solomon Islands.
Newmont Mining is earning up to 51% in the project through expending US$6 million over three years, with an option to increase its stake to 70% thereafter by expending a further US$6 million within 2 years.
The company has also published its financial results for the six months to 31 December 2009, reporting a loss of A$0.91 million compared to A$0.45 million for the equivalent period of the previous year, which was a result of higher administrative expenses, which rose from A$0.5 million to A$0.73 million, and an acquisition cost of A$0.33 million.
In late 2009, the company finalized terms for the acquisition of Acapulco Mining, which holds extensive tenements over a large project area in and around Mt Perry and which sits only 15 km (kilometres) from Lihir Gold's Mt Rawdon mine with a 1 million oz resource producing 100,000 oz pa (ounces per annum) of gold in Queensland. The second acquisition of the year was for Central Minerals, which holds exploration licences covering a huge area along the eastern edge of the Bowen Basin in Central Queensland.
Both Queensland projects acquired are 100% owned and operated by Solomon Gold, which has set out a six month exploration plan and budget for the assets with the intention of defining a resource and bringing it into production as soon as practicable.
Solomon Gold was granted an exploration licence in November 2009 over a highly prospective area on Fauro Island, where the company identified gold contents between two and six times the levels found in highly anomalous samples on its project on the main island of Solomon Islands, Guadalcanal. Samples taken at the time showed gold values of up to 169 g/t (grammes per tonne). An airborne magnetic and electromagnetic survey over the area is currently underway with a drill program expected to commence in Q2 2010 to test anomalies identified.
Solomon said the Queensland acquisitions and the development of the Fauro island project was meant to de-risk and diversify the company’s assets.
http://www.proactiveinvestors.co.uk/companies/news/14891/solomon-gold-says-newmont-jv-progresses-faster-than-expected-plans-fauro-drilling-in-q2-14891.html
May Gurney wins Torbay Council services deal worth up to £130 mln
May Gurney Integrated Services PLC (AIM: MAYG) said it has been selected as preferred bidder to deliver a range of services for Torbay Council in a deal worth up to £130 million.
The infrastructure services said the contract is currently valued at that amount over an initial period of 10 years with possible extensions of a further 15 years. It will be delivered through a new joint venture company (JVC) between Torbay Council and May Gurney.
The estimated annual value is up to £13 million and the aim is that the JVC will begin mobilisation in April with services commencing in July.
The JVC will deliver a wide range of essential front-line services to the residents of Torbay including waste and recycling collections; the maintenance of highways, grounds, parks, car parks, buildings and the Council's vehicle fleet; street and beach cleansing; and out of hours call centre support.
May Gurney will hold an 80 percent share of the JVC, which will also independently source new business clients in the region.
More than 95 percent of May Gurney's business is represented by dependable long-term contracts in the public and regulated sectors, which, together with a strong £1.4 billion forward order book and healthy pipeline of future opportunities, provides high visibility of earnings.
http://www.proactiveinvestors.co.uk/companies/news/14889/may-gurney-wins-torbay-council-services-deal-worth-up-to-130-mln-14889.html
The infrastructure services said the contract is currently valued at that amount over an initial period of 10 years with possible extensions of a further 15 years. It will be delivered through a new joint venture company (JVC) between Torbay Council and May Gurney.
The estimated annual value is up to £13 million and the aim is that the JVC will begin mobilisation in April with services commencing in July.
The JVC will deliver a wide range of essential front-line services to the residents of Torbay including waste and recycling collections; the maintenance of highways, grounds, parks, car parks, buildings and the Council's vehicle fleet; street and beach cleansing; and out of hours call centre support.
May Gurney will hold an 80 percent share of the JVC, which will also independently source new business clients in the region.
More than 95 percent of May Gurney's business is represented by dependable long-term contracts in the public and regulated sectors, which, together with a strong £1.4 billion forward order book and healthy pipeline of future opportunities, provides high visibility of earnings.
http://www.proactiveinvestors.co.uk/companies/news/14889/may-gurney-wins-torbay-council-services-deal-worth-up-to-130-mln-14889.html
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