TyraTech (AIM: TYR) announced it plans to raise £1 million and up to a further£1.2 million before expenses by means of a subscription of new shares in the company at 9 pence per new share to provide additional working capital.
The group flagged a fundraising to provide adequate short term working capital headroom on April 29, saying it had already received expressions of interest from potential subscribers totalling approximately £1 million. On the day, it said whilst the business continues to perform broadly in line with expectations, the board was aware, based on current cash flow forecasts and the likely timing of certain cash receipts due to be paid in June, that the company's working capital headroom may fall to below £50,000 during the last weeks of May.
Today, the novel pesticide company for human, animal and environmental health said the subscription is conditional on shareholder approval at a special meeting which it is calling for May 19 2010.
It has received irrevocable undertakings from certain stockholders to vote in favour of the fundraising plans amounting in aggregate to 12,072,390 common shares, representing approximately 55 percent of the capital.
Following approval, interested parties may subscribe for up to 24,444,444 new common shares to raise up to £2.2 million before expenses. Subscriptions have so far been received in respect of 11,113,604 new common chares conditionally raising £1,000,224 million before expenses.
TyraTech said the subscription will enable it to leverage existing partnerships to create new business opportunities, develop relationships with new partners, maintain the confidence of current and future partners in the company, improve its negotiating position with new partners and provide greater security for the future.
In February, the company announced an expanded strategic relationship with professional pest control group Terminix International. Today, TyraTech announced it received an additional order for 300,000 units of its co-branded Terminix SafeShield product from Terminix. This order is currently being fulfilled and represents a significant increase on the amount of Terminix SafeShield ordered in 2009, and additional orders are expected in 2010. The Company's partnership with Terminix requires that it supplies new products, for example other effective presentations and formulations, for new markets.
The relationship with Kraft Foods Holdings Inc (NYSE: KFT) continues strongly. The company has received the second payment under the revised contract announced in October 2009 reimbursing costs of the project incurred during 2010.
TyraTech’s cost base has been cut to a level close to half of that incurred in 2009. “Because of the current cash constraints, negotiations with new potential partners have been difficult and most have simply been put on hold until the company can focus more on the strength of its products and less on the weakness of its balance sheet. Other important areas on hold include geographic expansion as the company has had to freeze the European regulatory program,” the company said.
In full-year results statement from its April 29, TyraTech said it has demonstrated the commercial value of its technology during the period, with the launch of the company’s first Terminix International joint-development product into consumer markets. Consequently, TyraTech achieved product revenue growth and reduced costs by a third to report a significantly improved financial performance in 2009. The company reduced its net pre-tax loss to US$12.9m, down from US$17.4m in the previous year.
http://www.proactiveinvestors.co.uk/companies/news/16427/tyratech-to-raise-up-to-22-mln-in-recently-flagged-fundraising-16427.html
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Monday, 10 May 2010
African Eagle sends off full Ngasamo assay set from Dutwa nickel project for resource estimate
African Eagle Resources (AIM: AFE) said it has received the last batch of assay results from recently completed drilling at Ngasamo Hill, a part of its Dutwa nickel project in Tanzania. The assays have been sent to Snowden Mining Industry Consultants in Perth for a formal resource estimate.
Managing Director Mark Parker commented: "We are extremely pleased with the drill results from Ngasamo. They reveal a deposit which is somewhat thicker than the main Dutwa deposit, and although the average grade appears to be slightly lower, we expect Ngasamo will add significantly to the overall resource base.”
Of the 66 holes drilled in the vertical reverse circulation (RC) programme which was designed to delineate a formal Mineral Resource to JORC Inferred category or better, 59 intersected mineralisation, and highlights include: 75 metres at 1.42 percent nickel, 84 metres at 1.07 percent nickel including 30 metres at 1.64 percent, 63 metres at 1.41 percent nickel including 45 metres at 1.71 percent, and 57 metres at 1.25 percent nickel including 12 metres at 2.48 percent.
Key cobalt mineralisation intersections include 18 metres at 0.47 percent cobalt, 9 metres at 0.43 percent and 9 metres at 0.27 percent cobalt, the latter including 3 metres at 0.48 percent.
African Eagle has also completed an infill drilling programme at the Dutwa main deposit, designed to test the internal variability of the mineralisation and allow the Dutwa main resource to be upgraded to JORC Indicated category.
"Meanwhile, the nickel market continues to show strength, with prices now up more than 40 percent this year, backed by an increase of 55 percent year-on-year stainless steel demand from China," MD Parker said.
With the determination of a resource estimate at Ngasamo to JORC inferred standard or better, African Eagle will have completed its earn-in of a 35 percent interest in the deposit from Ngasamo's owners, Safina a.s. of the Czech Republic and its Tanzanian subsidiary Precious Metals Refinery Company Ltd. Thereafter, the company can increase its equity in Ngasamo to at least 50 percent and up to 75 percent by completing further resource and feasibility work.
Since discovering major oxide nickel deposits at Dutwa, African Eagle is in transition from a diversified explorer into a nickel mining company. The company completed a positive scoping study on the Dutwa deposit in July 2009 and is now working towards a full feasibility study.
African Eagle is evaluating a second promising oxide nickel deposit at Zanzui in Tanzania, 60 kilometres south of Dutwa.
The company also holds a 49 percent interest in the Mkushi Copper Mines joint venture in Zambia, for which a draft feasibility study was completed in Q4 2008. In addition, it holds a half million ounce gold resource at the Miyabi project in Tanzania, and a portfolio of gold and base metal exploration assets, including two projects in the Zambian Copperbelt.
The company is seeking partners or buyers for its non-core copper, gold and uranium projects.
http://www.proactiveinvestors.co.uk/companies/news/16426/african-eagle-sends-off-full-ngasamo-assay-set-from-dutwa-nickel-project-for-resource-estimate-16426.html
Managing Director Mark Parker commented: "We are extremely pleased with the drill results from Ngasamo. They reveal a deposit which is somewhat thicker than the main Dutwa deposit, and although the average grade appears to be slightly lower, we expect Ngasamo will add significantly to the overall resource base.”
Of the 66 holes drilled in the vertical reverse circulation (RC) programme which was designed to delineate a formal Mineral Resource to JORC Inferred category or better, 59 intersected mineralisation, and highlights include: 75 metres at 1.42 percent nickel, 84 metres at 1.07 percent nickel including 30 metres at 1.64 percent, 63 metres at 1.41 percent nickel including 45 metres at 1.71 percent, and 57 metres at 1.25 percent nickel including 12 metres at 2.48 percent.
Key cobalt mineralisation intersections include 18 metres at 0.47 percent cobalt, 9 metres at 0.43 percent and 9 metres at 0.27 percent cobalt, the latter including 3 metres at 0.48 percent.
African Eagle has also completed an infill drilling programme at the Dutwa main deposit, designed to test the internal variability of the mineralisation and allow the Dutwa main resource to be upgraded to JORC Indicated category.
"Meanwhile, the nickel market continues to show strength, with prices now up more than 40 percent this year, backed by an increase of 55 percent year-on-year stainless steel demand from China," MD Parker said.
With the determination of a resource estimate at Ngasamo to JORC inferred standard or better, African Eagle will have completed its earn-in of a 35 percent interest in the deposit from Ngasamo's owners, Safina a.s. of the Czech Republic and its Tanzanian subsidiary Precious Metals Refinery Company Ltd. Thereafter, the company can increase its equity in Ngasamo to at least 50 percent and up to 75 percent by completing further resource and feasibility work.
Since discovering major oxide nickel deposits at Dutwa, African Eagle is in transition from a diversified explorer into a nickel mining company. The company completed a positive scoping study on the Dutwa deposit in July 2009 and is now working towards a full feasibility study.
African Eagle is evaluating a second promising oxide nickel deposit at Zanzui in Tanzania, 60 kilometres south of Dutwa.
The company also holds a 49 percent interest in the Mkushi Copper Mines joint venture in Zambia, for which a draft feasibility study was completed in Q4 2008. In addition, it holds a half million ounce gold resource at the Miyabi project in Tanzania, and a portfolio of gold and base metal exploration assets, including two projects in the Zambian Copperbelt.
The company is seeking partners or buyers for its non-core copper, gold and uranium projects.
http://www.proactiveinvestors.co.uk/companies/news/16426/african-eagle-sends-off-full-ngasamo-assay-set-from-dutwa-nickel-project-for-resource-estimate-16426.html
Minera IRL making good progress at Don Nicolas gold project in Patagonia
Minera IRL (AIM, BVL: MIRL, TSX: IRL) said the feasibility study for the Don Nicolas gold project in Patagonia, Argentina, is well underway.
Two rigs are now engaged in extension and in-fill drilling on the Sulfuro Vein at La Paloma and when completed, expected by the end of June, will move on to a similar exercise on the gold mineralization at Martinetas. This will allow the resource to be substantially categorized as Measured and Indicated Resource. The exploration focus is to make new discoveries near defined resources whilst progressively assessing several other existing exploration targets.
Good progress is being made on other aspects of the feasibility program such as the environmental EIA study, metallurgical testing, mining studies and a hydrology program aimed at securing adequate water resources.
Don Nicolas currently has an Indicated Resource of 1,078,000 tonnes at 5.8 g/t for 200,700 ounces of gold and an Inferred Resource of 1,075,000 tonnes at 4.6 g/t for 158,400 ounces of gold.
The amalgamation of Hidefield Argentina into Minera IRL Patagonia SA is now substantially complete and the 2010 program is in full swing.
"I am extremely pleased with our work program in Patagonia and am more convinced than ever that the Hidefield takeover was an excellent transaction." said Courtney Chamberlain, executive chairman of Minera IRL. "We have a high quality, enthusiastic team which has integrated very well and increasing potential is already emerging on our tenements."
Inaugural exploration field work success has already mapped a new, significantly wide breccia zone at Escondido, with a strike length of over 500 meters and up to 100 meters wide, located immediately south of Mariana Resources' (AIM: MARL) Las Calandrias project.
Of the 22 outcropping rock samples taken by Minera IRL at Escondidos, 11 returned values above 0.1g/t gold of which 7 were above 0.2g/t gold. Twelve samples analysed also assayed above 4g/t silver. The highest grade sample assayed 2.4g/t gold and 84g/t silver.
Analysts at broker FinnCap are currently in South America and noted that the closest intersection Mariana Resources drilled at Calandria Sur, Las Calandrias, was collared 10 metres from the Minera IRL property boundary.
Recent results show that the Las Calandrias mineralisation is present on both properties. FinnCap believes Las Calandrias has the potential to become a series of open pit mines extending over both properties. Minera IRL and Mariana Resources know each other well and may cooperate in the future as the projects become more advanced, it added.
Field work on Minera IRL’s property is also gearing up at Pan de Azucar where earlier Hidefield surface sampling obtained gold assays as high as 54g/t from the outcropping low-sulphidation quartz vein that has been mapped on surface over a strike length of 1 kilometre. Environmental and archaeological clearance is in progress on both of these projects in preparation to the follow-up phase of exploration.
The group operates the Corihuarmi gold mine and the emerging Ollachea gold project in Peru as well as the Don Nicolas project.
http://www.proactiveinvestors.co.uk/companies/news/16425/minera-irl-making-good-progress-at-don-nicolas-gold-project-in-patagonia-16425.html
Two rigs are now engaged in extension and in-fill drilling on the Sulfuro Vein at La Paloma and when completed, expected by the end of June, will move on to a similar exercise on the gold mineralization at Martinetas. This will allow the resource to be substantially categorized as Measured and Indicated Resource. The exploration focus is to make new discoveries near defined resources whilst progressively assessing several other existing exploration targets.
Good progress is being made on other aspects of the feasibility program such as the environmental EIA study, metallurgical testing, mining studies and a hydrology program aimed at securing adequate water resources.
Don Nicolas currently has an Indicated Resource of 1,078,000 tonnes at 5.8 g/t for 200,700 ounces of gold and an Inferred Resource of 1,075,000 tonnes at 4.6 g/t for 158,400 ounces of gold.
The amalgamation of Hidefield Argentina into Minera IRL Patagonia SA is now substantially complete and the 2010 program is in full swing.
"I am extremely pleased with our work program in Patagonia and am more convinced than ever that the Hidefield takeover was an excellent transaction." said Courtney Chamberlain, executive chairman of Minera IRL. "We have a high quality, enthusiastic team which has integrated very well and increasing potential is already emerging on our tenements."
Inaugural exploration field work success has already mapped a new, significantly wide breccia zone at Escondido, with a strike length of over 500 meters and up to 100 meters wide, located immediately south of Mariana Resources' (AIM: MARL) Las Calandrias project.
Of the 22 outcropping rock samples taken by Minera IRL at Escondidos, 11 returned values above 0.1g/t gold of which 7 were above 0.2g/t gold. Twelve samples analysed also assayed above 4g/t silver. The highest grade sample assayed 2.4g/t gold and 84g/t silver.
Analysts at broker FinnCap are currently in South America and noted that the closest intersection Mariana Resources drilled at Calandria Sur, Las Calandrias, was collared 10 metres from the Minera IRL property boundary.
Recent results show that the Las Calandrias mineralisation is present on both properties. FinnCap believes Las Calandrias has the potential to become a series of open pit mines extending over both properties. Minera IRL and Mariana Resources know each other well and may cooperate in the future as the projects become more advanced, it added.
Field work on Minera IRL’s property is also gearing up at Pan de Azucar where earlier Hidefield surface sampling obtained gold assays as high as 54g/t from the outcropping low-sulphidation quartz vein that has been mapped on surface over a strike length of 1 kilometre. Environmental and archaeological clearance is in progress on both of these projects in preparation to the follow-up phase of exploration.
The group operates the Corihuarmi gold mine and the emerging Ollachea gold project in Peru as well as the Don Nicolas project.
http://www.proactiveinvestors.co.uk/companies/news/16425/minera-irl-making-good-progress-at-don-nicolas-gold-project-in-patagonia-16425.html
Avocet Mining denies rumours of US$250 mln disposal of North Lanut and Penjom gold mines
Avocet Mining (LSE:AVM) has denied press specuation that it has sold its two gold mines in south-east Asia for US$250 million.
While Avocet did confirm it was in ‘very preliminary discussions’ with interested parties that may lead to a sale, it quashed any idea that a disposal was on the immediate horizon. Press speculation suggested the buyer of Avocet’s North Lanut and Penjom mines was PT Labong Tandai, which already holds a 20% stake in North Lanut and the Bakan project in Indonesia.
Over the past 12 months (to 31 March 2010), total cumulative production from the two mines was 107,000 ounces.
Avocet’s other key project is the Inata gold mine in Burkina Faso, where it holds a 90% interest. Inata is currently ramping up production to 10,000 ounces per month, and hosts 900,000 ounces of reserves and 1.7 million ounces of resources.
http://www.proactiveinvestors.co.uk/companies/news/16424/avocet-mining-denies-rumours-of-us250-mln-disposal-of-north-lanut-and-penjom-gold-mines-16424.html
While Avocet did confirm it was in ‘very preliminary discussions’ with interested parties that may lead to a sale, it quashed any idea that a disposal was on the immediate horizon. Press speculation suggested the buyer of Avocet’s North Lanut and Penjom mines was PT Labong Tandai, which already holds a 20% stake in North Lanut and the Bakan project in Indonesia.
Over the past 12 months (to 31 March 2010), total cumulative production from the two mines was 107,000 ounces.
Avocet’s other key project is the Inata gold mine in Burkina Faso, where it holds a 90% interest. Inata is currently ramping up production to 10,000 ounces per month, and hosts 900,000 ounces of reserves and 1.7 million ounces of resources.
http://www.proactiveinvestors.co.uk/companies/news/16424/avocet-mining-denies-rumours-of-us250-mln-disposal-of-north-lanut-and-penjom-gold-mines-16424.html
United Utilities sells Australian arm for A$225 mln to Mitsubishi-led consortium
United Utilities (LSE:UU.), Britain’s largest listed water company, had entered into an agreement to sell its 100% owned subsidiary United Utilities Australia to a consortium led by Mitsubishi Corporation.
The deal will see the consortium pay A$176 million and assume A$49 million in debt, placing a value of A$225 million on the assets.
The consortium includes Mitsubishi Corporation, the Innovation Network Corporation of Japan, Manila Water Company and JGC Corporation.
United Utilities serves approximately 3.2 million premises and a population of approximately 7 million in the North West of England.
http://www.proactiveinvestors.co.uk/companies/news/16422/united-utilities-sells-australian-arm-for-a225-mln-to-mitsubishi-led-consortium-16422.html
The deal will see the consortium pay A$176 million and assume A$49 million in debt, placing a value of A$225 million on the assets.
The consortium includes Mitsubishi Corporation, the Innovation Network Corporation of Japan, Manila Water Company and JGC Corporation.
United Utilities serves approximately 3.2 million premises and a population of approximately 7 million in the North West of England.
http://www.proactiveinvestors.co.uk/companies/news/16422/united-utilities-sells-australian-arm-for-a225-mln-to-mitsubishi-led-consortium-16422.html
Valiant Petroleum discovers oil at East Tybalt, North Sea
Valiant Petroleum (AIM: VPP) confirmed the discovery of hydrocarbons in the Tybalt exploration (well 211/8c-4) in the Upper Magnus Sand Formation within the eastern 'T2' pinch-out prospect having intersected a gross oil column of 85 meters. The Magnus Sand Formation in the North sea was the initial target of the well, which has a gross P50 prospective resource of 35.6 million barrels of oil.
Valiant'S P1632 licence is located in the UK northern North Sea License P1632. The well was drilled by the Diamond Ocean Nomad semisub, and was expected to take around 30 days to reach its target depth of around 3,475 meters.
Valiant reported this morning that initial data from the well confirmed at least 19 meters of reservoir, lower than pre-drill estimates, but with many tests still running, the final net pay calculation is yet to be calculated.
The company also plans to drill a sidetrack from the well to test a four way dip structure (West Tybalt) which lies west of the current well. The company is also weighing up the possibility of an additional sidetrack and a drill stem test to fully test the reservoir’s properties.
Valiant is operator of the blocks with an 80% working interest. The remaining 20% is held by Agora Oil & Gas.
Valiant CEO Peter Buchanan commented: "We are pleased with the early indications from the East Tybalt well. In the event of further success in the West Tybalt side-track well, Valiant believe that sufficient hydrocarbon volumes will have been identified to proceed with a development either on its own or alongside the development / re-development of the other fields in the area including the nearby Valiant-operated Banquo and Helena discoveries."
http://www.proactiveinvestors.co.uk/companies/news/16421/valiant-petroleum-discovers-oil-at-east-tybalt-north-sea-16421.html
Valiant'S P1632 licence is located in the UK northern North Sea License P1632. The well was drilled by the Diamond Ocean Nomad semisub, and was expected to take around 30 days to reach its target depth of around 3,475 meters.
Valiant reported this morning that initial data from the well confirmed at least 19 meters of reservoir, lower than pre-drill estimates, but with many tests still running, the final net pay calculation is yet to be calculated.
The company also plans to drill a sidetrack from the well to test a four way dip structure (West Tybalt) which lies west of the current well. The company is also weighing up the possibility of an additional sidetrack and a drill stem test to fully test the reservoir’s properties.
Valiant is operator of the blocks with an 80% working interest. The remaining 20% is held by Agora Oil & Gas.
Valiant CEO Peter Buchanan commented: "We are pleased with the early indications from the East Tybalt well. In the event of further success in the West Tybalt side-track well, Valiant believe that sufficient hydrocarbon volumes will have been identified to proceed with a development either on its own or alongside the development / re-development of the other fields in the area including the nearby Valiant-operated Banquo and Helena discoveries."
http://www.proactiveinvestors.co.uk/companies/news/16421/valiant-petroleum-discovers-oil-at-east-tybalt-north-sea-16421.html
Croda International sells German chemicals business for €60.5 mln
FTSE 250 constituent Croda International is selling its Emmerich Site and associated business in Germany to a subsidiary of the KLK Group for €60.5 million.
As part of the deal KLK Group will assume all retirement benefit obligations related to the business of approximately €35.2 million. The remaining €25.3 million will be paid to Croda in cash. “The disposal largely completes Croda's restructuring programme to re-position its oleochemical operations following the acquisition of Uniqema in 2006,” Croda stated.
The Emmerich Site produces fatty acids and glycerine. On a pro-forma basis the business had sales of £80.0m and made an operating loss of £2.1million in 2009.
Croada intends to use the proceeds of the sale to pay down its debt pile. The company’s net debt position as of 31 March 2010 was £292.7 million.
http://www.proactiveinvestors.co.uk/companies/news/16419/croda-international-sells-german-chemicals-business-for-605-mln-16419.html
As part of the deal KLK Group will assume all retirement benefit obligations related to the business of approximately €35.2 million. The remaining €25.3 million will be paid to Croda in cash. “The disposal largely completes Croda's restructuring programme to re-position its oleochemical operations following the acquisition of Uniqema in 2006,” Croda stated.
The Emmerich Site produces fatty acids and glycerine. On a pro-forma basis the business had sales of £80.0m and made an operating loss of £2.1million in 2009.
Croada intends to use the proceeds of the sale to pay down its debt pile. The company’s net debt position as of 31 March 2010 was £292.7 million.
http://www.proactiveinvestors.co.uk/companies/news/16419/croda-international-sells-german-chemicals-business-for-605-mln-16419.html
BG Group inks joint venture with Exco Resources to tap into US shale gas sector
London’s BG Group (LSE:BG) seems to have an insatiable appetite for gas assets, announcing another joint venture this morning with Exco Resources (NYSE:XCO) to develop gas projects in the United States.
BG Group is acquiring a 50% interest in Exco Resources’ 654,000 (net) acres in the Appalachian Basin, primarily in the states of Pennsylvania and West Virginia for US$0.95 billion. The transaction also includes 5,900 shallow wells which currently produce around 35 million standard cubic feet per day (mmcfd). The significance of the shallow wells is less to do with their production rates, and more to do with their ability to secure the rights to the deeper Marcellus shales.
Shale gas is a fairly new phenomenon, after drilling and fracing technology advanced to a level to make shale gas plays economically viable. The success of shale gas has been so significant in recent years that it has placed downward pressure on natural gas prices across the United States as gas resources and supply has risen substantially.
BG Group chief executive Frank Chapman said: "We are delighted to expand our highly successful alliance with EXCO built around complementary skills and objectives. The new joint venture will further strengthen BG Group's unconventional gas portfolio, adding, at an attractive price, substantial resources adjacent to the premium gas markets of the US eastern seaboard. This transaction provides critical mass to BG Group's US upstream gas business, with total resources estimated at more than 7 trillion standard cubic feet (tcf), equivalent to more than 1.2 billion barrels of oil equivalent."
http://www.proactiveinvestors.co.uk/companies/news/16412/bg-group-inks-joint-venture-with-exco-resources-to-tap-into-us-shale-gas-sector-16412.html
BG Group is acquiring a 50% interest in Exco Resources’ 654,000 (net) acres in the Appalachian Basin, primarily in the states of Pennsylvania and West Virginia for US$0.95 billion. The transaction also includes 5,900 shallow wells which currently produce around 35 million standard cubic feet per day (mmcfd). The significance of the shallow wells is less to do with their production rates, and more to do with their ability to secure the rights to the deeper Marcellus shales.
Shale gas is a fairly new phenomenon, after drilling and fracing technology advanced to a level to make shale gas plays economically viable. The success of shale gas has been so significant in recent years that it has placed downward pressure on natural gas prices across the United States as gas resources and supply has risen substantially.
BG Group chief executive Frank Chapman said: "We are delighted to expand our highly successful alliance with EXCO built around complementary skills and objectives. The new joint venture will further strengthen BG Group's unconventional gas portfolio, adding, at an attractive price, substantial resources adjacent to the premium gas markets of the US eastern seaboard. This transaction provides critical mass to BG Group's US upstream gas business, with total resources estimated at more than 7 trillion standard cubic feet (tcf), equivalent to more than 1.2 billion barrels of oil equivalent."
http://www.proactiveinvestors.co.uk/companies/news/16412/bg-group-inks-joint-venture-with-exco-resources-to-tap-into-us-shale-gas-sector-16412.html
Frontier Mining gets more encouraging data from Benkala copper project
Frontier Mining (AIM: FML) has received assay results for the first 8 holes of its infill drilling programme at the Benkala copper project in north-western Kazakhstan, saying the results indicate copper grades of 0.63 percent, slightly higher compared to the historical drilling data in the Soviet era 1976-1980 which indicated an average copper content for the deposit of 0.55 percent.
The latest news affirms what the group announced at the end of March when copper content from the first 3 holes showed an improvement over the Soviet data.
Frontier’s 50% owned KazCopper, a joint venture with Coville Intercorp, undertook the drilling programme at Benkala, with the first 54 holes completed in December. The majority, 48 holes, were drilled between 33-200 metres totalling 4,872.7m in oxide ore, whilst the remaining 6 holes were drilled to depths between 230 - 350 metres totalling 1,826.2m.
The main focus of the programme was to confirm the oxide section of the project, enabling Frontier to prepare for initial copper production using an SX-EW process (solvent extraction and electrowinning).
Drill hole 111-4 intersected copper at 0.74 percent over 19.5m and 117-5 found copper at 0.92 percent over 45.5m.
Erlan Sagadiev, CEO of Frontier Mining commented today: "Now that we are entering the production phase, we are pleased to see that these positive results continue to demonstrate the quality of the Benkala deposit. With 63% recovery in the lab tests, the ability to process the oxide cap of the deposit through conventional SX/EW processing reinforces our decision to use this technology and further supports our overall business strategy for initial production in 2011."
The company will continue to provide updates on its drilling results and development activities at Benkala as they become available.
Frontier expects to issue a JORC compliant resource statement for the oxide/supergene zone in the third quarter of 2010.
Following the completion of the first stage of the infill drilling, KazCopper is now working on an additional 3,000 metres of oxide ore drilling at depths of 100 to 250 metres in the proposed open pit zone.
Frontier is in discussions with joint venture partner Coville regarding a potential merger. The groups announced in February 2010 they signed a memorandum of understanding (MoU) to that effect, and the transaction is expected to be concluded by 31 October 2010.
The Soviet estimates, carried out in the nineteen-seventies, inferred a resource of over 2 million tonnes of contained Copper and associated Gold & Molybdenum. However, due to the lack of infrastructure at that time, the development of a mining operation was abandoned. With the modern development in the area, including the construction of two regional airports, road and rail networks, and the ongoing installation of electricity and other utilities, Frontier does no longer consider infrastructure to be a concern.
http://www.proactiveinvestors.co.uk/companies/news/16409/frontier-mining-gets-more-encouraging-data-from-benkala-copper-project-16409.html
The latest news affirms what the group announced at the end of March when copper content from the first 3 holes showed an improvement over the Soviet data.
Frontier’s 50% owned KazCopper, a joint venture with Coville Intercorp, undertook the drilling programme at Benkala, with the first 54 holes completed in December. The majority, 48 holes, were drilled between 33-200 metres totalling 4,872.7m in oxide ore, whilst the remaining 6 holes were drilled to depths between 230 - 350 metres totalling 1,826.2m.
The main focus of the programme was to confirm the oxide section of the project, enabling Frontier to prepare for initial copper production using an SX-EW process (solvent extraction and electrowinning).
Drill hole 111-4 intersected copper at 0.74 percent over 19.5m and 117-5 found copper at 0.92 percent over 45.5m.
Erlan Sagadiev, CEO of Frontier Mining commented today: "Now that we are entering the production phase, we are pleased to see that these positive results continue to demonstrate the quality of the Benkala deposit. With 63% recovery in the lab tests, the ability to process the oxide cap of the deposit through conventional SX/EW processing reinforces our decision to use this technology and further supports our overall business strategy for initial production in 2011."
The company will continue to provide updates on its drilling results and development activities at Benkala as they become available.
Frontier expects to issue a JORC compliant resource statement for the oxide/supergene zone in the third quarter of 2010.
Following the completion of the first stage of the infill drilling, KazCopper is now working on an additional 3,000 metres of oxide ore drilling at depths of 100 to 250 metres in the proposed open pit zone.
Frontier is in discussions with joint venture partner Coville regarding a potential merger. The groups announced in February 2010 they signed a memorandum of understanding (MoU) to that effect, and the transaction is expected to be concluded by 31 October 2010.
The Soviet estimates, carried out in the nineteen-seventies, inferred a resource of over 2 million tonnes of contained Copper and associated Gold & Molybdenum. However, due to the lack of infrastructure at that time, the development of a mining operation was abandoned. With the modern development in the area, including the construction of two regional airports, road and rail networks, and the ongoing installation of electricity and other utilities, Frontier does no longer consider infrastructure to be a concern.
http://www.proactiveinvestors.co.uk/companies/news/16409/frontier-mining-gets-more-encouraging-data-from-benkala-copper-project-16409.html
Vedanta Acquires Anglo American’s zinc assets for $1.38 billion
Vedanta (LSE:VED), the India headquarter mining group with a strong presence in base metals production, has diversified its mining interests through the acquisition of Anglo American’s (LSE:AAL) zinc assets for US$1.388 billion. Anglo American placed its zinc operations, along with several other interests, up for sale in 2009 as part of its restructuring. Vedanta on the other hand, has been keen to diversify its mining interests into other regions of the world, which this transaction will help facilitate by giving the FTSE 100 constituent a greater presence in Africa and Ireland.
Vedanta will fund the transaction from its existing cash resources, which stood at US$7.2 billion at the end of March.
Assets included in the transaction include the Lisheen Mine in Ireland, a 74% stake in Black Mountain Mining, which in turn owns the Black Mountain Mine and Gamsberg Project in South Africa, and the Skorpion Mine in Namibia. “Anglo Zinc is an excellent operational and strategic fit with Vedanta's existing zinc business and will create significant long term value for Vedanta's shareholders,” Vedanta stated.
The new assets will boost the company’s annual production capacity of zinc and lead by 37% to 1,462 ktpa, increase attributable reserves and resources by 76%, or 206 million tonnes, and offer ‘significant’ organic growth through the Gamsberg mine – one of the largest undeveloped zinc mines in the world.
Anil Agarwal, Chairman of Vedanta, said: "We are delighted to have reached this agreement with Anglo American to acquire their portfolio of zinc assets. These high quality assets complement Vedanta's existing portfolio, creating the largest zinc and lead producer in the world. We intend to rapidly develop Gamsberg, one of the largest high quality zinc projects in the world, leveraging our world-class large project development expertise. Vedanta has consistently demonstrated a track record of successfully integrating and investing in its acquisitions, and we look forward to working with the high quality management team and employees of Anglo American Zinc, Exxaro and the local communities towards growing the business. We are committed, as we are throughout all of our operations world wide, to maintaining the highest health and safety standards, and to the sustainable development of these operations."
http://www.proactiveinvestors.co.uk/companies/news/16396/vedanta-acquires-anglo-americans-zinc-assets-for-138-billion-16396.html
Vedanta will fund the transaction from its existing cash resources, which stood at US$7.2 billion at the end of March.
Assets included in the transaction include the Lisheen Mine in Ireland, a 74% stake in Black Mountain Mining, which in turn owns the Black Mountain Mine and Gamsberg Project in South Africa, and the Skorpion Mine in Namibia. “Anglo Zinc is an excellent operational and strategic fit with Vedanta's existing zinc business and will create significant long term value for Vedanta's shareholders,” Vedanta stated.
The new assets will boost the company’s annual production capacity of zinc and lead by 37% to 1,462 ktpa, increase attributable reserves and resources by 76%, or 206 million tonnes, and offer ‘significant’ organic growth through the Gamsberg mine – one of the largest undeveloped zinc mines in the world.
Anil Agarwal, Chairman of Vedanta, said: "We are delighted to have reached this agreement with Anglo American to acquire their portfolio of zinc assets. These high quality assets complement Vedanta's existing portfolio, creating the largest zinc and lead producer in the world. We intend to rapidly develop Gamsberg, one of the largest high quality zinc projects in the world, leveraging our world-class large project development expertise. Vedanta has consistently demonstrated a track record of successfully integrating and investing in its acquisitions, and we look forward to working with the high quality management team and employees of Anglo American Zinc, Exxaro and the local communities towards growing the business. We are committed, as we are throughout all of our operations world wide, to maintaining the highest health and safety standards, and to the sustainable development of these operations."
http://www.proactiveinvestors.co.uk/companies/news/16396/vedanta-acquires-anglo-americans-zinc-assets-for-138-billion-16396.html
Chromex expands to Zimbabwe with acquisition of Waylox Mining
South Africa focused Chromex Mining PLC (AIM: CHX) said it has concluded the acquisition of Waylox Mining (Private) Ltd, a chrome mining company operating in Zimbabwe and a wholly owned subsidiary of TransAfrika Resources Ltd for a total of US$1.15 million.
The deal was signed on April 15 2010, and all conditions have now been fulfilled. Chromex is paying US$300,000 in cash, with the balance of US$815,000 in 3,465,247 new Chromex shares at a price of 15.83 pence per share.
The acquisition is in line with the company's strategy of building a solid portfolio of chrome production assets across southern Africa.
Waylox has been operating in Zimbabwe since August 2008 after acquiring the 683 hectares Trixie and Prince of Wales claims located in the prospective Darwendale area. The Darwendale area is located on the Great Dyke of Zimbabwe which is host to significant chrome resources.
The Trixie and Prince of Wales claims contain economic grades of alluvial chrome resources. The current mineral resource estimated on the 388 ha Trixie project stands at approximately 1.9 million tonnes at an average modelled grade of 13.8 percent chromium oxide Cr2O3. The estimate was calculated on the basis of the results of an exploration programme comprising 245 exploration pits across the five Trixie claims. The 216 ha Prince of Wales claims require further exploration which Chromex plan to conduct over the next six months.
Chromex has initiated a feasibility study on the Trixie claims which is expected to be completed in Q4 2010. Similar chrome operations on the Great Dyke are producing chrome concentrates with Cr2O3 grades ranging from 47 to 50 percent and Cr:Fe ratios in excess of 1.9:1.
CEO Russell Lamming said: "This acquisition represents a significant opportunity for Chromex as we expand our position as a leading chrome company in southern Africa. With resource estimation and metallurgical testwork almost complete we should be in a position to start the development of the Trixie claims in Q4 of this year, and fast-track the project towards production, unlocking value for shareholders."
Astaire Securities featured Chromex in its Morning Report, saying that the acquisition of Waylox Mining moves the company another step towards becoming one of southern Africa’s leading chromite miners.
A feasibility study at Trixie is underway, and it will also be fairly straightforward to bring the Prince of Wales to production. "These operations should give Chromex significant additional production and cashflow, from limited capex and quickly," the broker added.
Chromex currently has two key mining assets located on the Bushveld Complex in South Africa, which between them have total resources of approximately 41 million tonnes of chromite. The Mecklenburg mine lies in the east and the Stellite mine in the west. Both are owned and operated by South African registered Chromex Mining Co, which is 74% owned by Chromex and 26% owned by their Black Economic Empowerment (BEE) partner Umnotho WeSizwe.
In line with its strategy, it is expanding its operations to Zimbabwe. In addition to the acquisition of Waylox, Chromex has signed a binding heads of agreement for acquiring a 49 percent stake in Falvect Mining (Private) Ltd in Zimbabwe.
The company’s flasgship Stellite mine is currently ramping up production. It will initially produce approximately 20,000 run of mine (ROM) tonnes per month, increasing to 40,000 ROM tonnes per month once a dense media separation circuit (DMS) is installed at the plant. The DMS is expected to be completed during the third quarter of 2010. Stellite should reach full capacity by the first quarter of 2011 - producing approximately 500,000 run-of-mine tonnes in the year.
http://www.proactiveinvestors.co.uk/companies/news/16394/chromex-expands-to-zimbabwe-with-acquisition-of-waylox-mining--16394.html
The deal was signed on April 15 2010, and all conditions have now been fulfilled. Chromex is paying US$300,000 in cash, with the balance of US$815,000 in 3,465,247 new Chromex shares at a price of 15.83 pence per share.
The acquisition is in line with the company's strategy of building a solid portfolio of chrome production assets across southern Africa.
Waylox has been operating in Zimbabwe since August 2008 after acquiring the 683 hectares Trixie and Prince of Wales claims located in the prospective Darwendale area. The Darwendale area is located on the Great Dyke of Zimbabwe which is host to significant chrome resources.
The Trixie and Prince of Wales claims contain economic grades of alluvial chrome resources. The current mineral resource estimated on the 388 ha Trixie project stands at approximately 1.9 million tonnes at an average modelled grade of 13.8 percent chromium oxide Cr2O3. The estimate was calculated on the basis of the results of an exploration programme comprising 245 exploration pits across the five Trixie claims. The 216 ha Prince of Wales claims require further exploration which Chromex plan to conduct over the next six months.
Chromex has initiated a feasibility study on the Trixie claims which is expected to be completed in Q4 2010. Similar chrome operations on the Great Dyke are producing chrome concentrates with Cr2O3 grades ranging from 47 to 50 percent and Cr:Fe ratios in excess of 1.9:1.
CEO Russell Lamming said: "This acquisition represents a significant opportunity for Chromex as we expand our position as a leading chrome company in southern Africa. With resource estimation and metallurgical testwork almost complete we should be in a position to start the development of the Trixie claims in Q4 of this year, and fast-track the project towards production, unlocking value for shareholders."
Astaire Securities featured Chromex in its Morning Report, saying that the acquisition of Waylox Mining moves the company another step towards becoming one of southern Africa’s leading chromite miners.
A feasibility study at Trixie is underway, and it will also be fairly straightforward to bring the Prince of Wales to production. "These operations should give Chromex significant additional production and cashflow, from limited capex and quickly," the broker added.
Chromex currently has two key mining assets located on the Bushveld Complex in South Africa, which between them have total resources of approximately 41 million tonnes of chromite. The Mecklenburg mine lies in the east and the Stellite mine in the west. Both are owned and operated by South African registered Chromex Mining Co, which is 74% owned by Chromex and 26% owned by their Black Economic Empowerment (BEE) partner Umnotho WeSizwe.
In line with its strategy, it is expanding its operations to Zimbabwe. In addition to the acquisition of Waylox, Chromex has signed a binding heads of agreement for acquiring a 49 percent stake in Falvect Mining (Private) Ltd in Zimbabwe.
The company’s flasgship Stellite mine is currently ramping up production. It will initially produce approximately 20,000 run of mine (ROM) tonnes per month, increasing to 40,000 ROM tonnes per month once a dense media separation circuit (DMS) is installed at the plant. The DMS is expected to be completed during the third quarter of 2010. Stellite should reach full capacity by the first quarter of 2011 - producing approximately 500,000 run-of-mine tonnes in the year.
http://www.proactiveinvestors.co.uk/companies/news/16394/chromex-expands-to-zimbabwe-with-acquisition-of-waylox-mining--16394.html
Jupiter Energy gives more details about testing of J-50 well
Jupiter Energy (ASX: JPR) has reported a more detailed update on its J-50 oil well in Kazakhstan. The company said the flow rate previously reported on should not be interpreted as being representative of the long term flow rate from the J-50 well that is expected to be achieved based on unrestricted flowing conditions after clean up and stimulation.
Jupiter released an operational update to shareholders titled "Jupiter Energy’s first commercial oil" providing current information relating to the testing of its J-50 well On 7 May 2010.
This update also advised shareholders that the company had made its first oil sale into the Kazakh domestic oil market and begun its transition from an oil explorer to an oil producer.
The company also disclosed to shareholders the status of testing operations of the J-50 well that commenced initial production earlier in the week.
The update provided a flow rate as at the day of the release based on restricted flow conditions. This rate was 220 barrels of oil per day (bopd).
The work program required to satisfy the company's statutory obligations as well as the ongoing preparation of the well for long term production at optimal flow rates was documented under the "Forward Plan" section of the 7 May 2010 announcement.
Jupiter has now provided a more detailed overview of the forward program to assist shareholders in better understanding what work is scheduled to be carried out on J-50 over the next few weeks.
The company is in the process of testing and cleaning up J-50 well prior to a 3 month production testing phase. During the testing phase and clean up phase a range of production performance data will be acquired from the well.
Much of this data is prescribed by the Kazakh authorities and is used to complete the various reports that are needed to apply for a Trial Production licence. A Trial Production licence is required by any company wishing to sell its oil into the export market.
Over the coming weeks the company will clean up the well and recover a range of data including flow rates and pressure data under a number of prescribed choke settings which control the flow rate of the well at surface.
As a result of the fact that (i) the well is still cleaning up (a process where the well expels contaminants which permeated the producing reservoir during drilling thereby restricting flow) and (ii) the well is being produced under prescribed flow rate conditions, an optimal flow rate has not yet been achieved for the well.
Following the clean up phase it is normal practice to stimulate carbonate reservoirs that are prevalent in the producing fields of the Mangistau basin of Kazakhstan to further enhance long term production rates.
Based on offset well data, stimulation is expected to significantly enhance long term production rates.
Jupiter expects that once this work has been completed, a sustainable production flow rate representative of the J-50 well's long term productivity will be known.
The company will announce the results of its forward program, including the sustainable production flow rate on the J-50 well, post stimulation and clean up in due course.
http://www.proactiveinvestors.co.uk/companies/news/16391/jupiter-energy-gives-more-details-about-testing-of-j-50-well-16391.html
Jupiter released an operational update to shareholders titled "Jupiter Energy’s first commercial oil" providing current information relating to the testing of its J-50 well On 7 May 2010.
This update also advised shareholders that the company had made its first oil sale into the Kazakh domestic oil market and begun its transition from an oil explorer to an oil producer.
The company also disclosed to shareholders the status of testing operations of the J-50 well that commenced initial production earlier in the week.
The update provided a flow rate as at the day of the release based on restricted flow conditions. This rate was 220 barrels of oil per day (bopd).
The work program required to satisfy the company's statutory obligations as well as the ongoing preparation of the well for long term production at optimal flow rates was documented under the "Forward Plan" section of the 7 May 2010 announcement.
Jupiter has now provided a more detailed overview of the forward program to assist shareholders in better understanding what work is scheduled to be carried out on J-50 over the next few weeks.
The company is in the process of testing and cleaning up J-50 well prior to a 3 month production testing phase. During the testing phase and clean up phase a range of production performance data will be acquired from the well.
Much of this data is prescribed by the Kazakh authorities and is used to complete the various reports that are needed to apply for a Trial Production licence. A Trial Production licence is required by any company wishing to sell its oil into the export market.
Over the coming weeks the company will clean up the well and recover a range of data including flow rates and pressure data under a number of prescribed choke settings which control the flow rate of the well at surface.
As a result of the fact that (i) the well is still cleaning up (a process where the well expels contaminants which permeated the producing reservoir during drilling thereby restricting flow) and (ii) the well is being produced under prescribed flow rate conditions, an optimal flow rate has not yet been achieved for the well.
Following the clean up phase it is normal practice to stimulate carbonate reservoirs that are prevalent in the producing fields of the Mangistau basin of Kazakhstan to further enhance long term production rates.
Based on offset well data, stimulation is expected to significantly enhance long term production rates.
Jupiter expects that once this work has been completed, a sustainable production flow rate representative of the J-50 well's long term productivity will be known.
The company will announce the results of its forward program, including the sustainable production flow rate on the J-50 well, post stimulation and clean up in due course.
http://www.proactiveinvestors.co.uk/companies/news/16391/jupiter-energy-gives-more-details-about-testing-of-j-50-well-16391.html
African Eagle: $8 billion of nickel and counting
Over the course of the rest of this year, metals explorer African Eagle expects to deliver data that will help reduce the disconnection between its present £11.5 million market value and its claimed $8.8 billion of nickel in northern Tanzania.
Like many AIM metals explorers, African Eagle has flattered to deceive in its time on the market. However, while it has stumbled in its attempts to advance projects, it has built up a not-insignificant brood of nickel, gold and copper exploration projects. Due to the company’s small size, management last year felt forced to choose between their babies. Although the glistering gold price might seem to make those projects attractive, African Eagle has decided to plump for its nickel assets, because of their sheer size and low cost of evaluation.
Managing director Mark Parker, one of the founders of the company with former chairman John Park, also explained to Proactive Investors that ‘the exploration risk is very low’ at its Dutwa nickel project and that the exceptional metallurgy of the site will allow for good recovery rates and low-cost extraction.
Located 100km east of the well connected mining city of Mwanza and close to the main Mwanza-Nairobi trunk road, Dutwa is a nickel laterite deposit. Laterites – near-surface deposits where over many years the weather has leached away more soluble elements to leave mineable concentrations of nickel and other less soluble elements such as iron and magnesium – can be extracted with acid leaching. They have been less favoured than the vein-style nickel sulphides that traditionally were the deposit of choice, due to some expensive ‘miss-steps’ such as BHP’s Ravensthorpe laterite project, which was eventually sold for a song after US$2.1 billion of investment. But more than two thirds of nickel now comes from laterites and Parker is confident that, due to the low iron content of the Dutwa deposit, the project is definitely economic. ‘We can do it for maybe a tenth of the usual capital cost,’ he assures. ‘If Ambatovy [in Madagascar] cost $4 billion, our capital cost, even using the slightly more expensive options like tank leaching, will be $350-$500 million.’
In 2008 African Eagle announced an initial Inferred Mineral Resource estimate for Dutwa of 31 million tonnes at an average grade of 1.1% nickel and 0.034% cobalt, with a contained metal endowment of some 340,000 tonnes of nickel and 11,000 tonnes of cobalt. The company believes the resource will increase following current step-out drilling and the delineation of the nearby Ngasamo deposit, also underway. A pre-feasibility study (PFS) for Dutwa is due at the end of calendar 2010 or in early 2011.
The metallurgy is key, though, explains Parker. ‘What we have is an average nickel content of about 1%-1.5%. But whereas some other companies’ more expensive projects have huge iron content of 30-40-50% and require high temperatures and high pressures to leach out the nickel, at our deposit nature has already done a lot of that work for us - so we have less than 10% iron and are low in magnesium and low in aluminium. So, yes, it’s not the highest grade but the metallurgy means that the extraction process is straightforward. We can process very straightforwardly with tank leaching or even cheaper heap leaching.’
Column leach tests at Dutwa gave 60% to 70% nickel extraction after just 16 days, rising to 90% after four months. This compares well against rival projects, where 540 days of leaching was required to extract 80% of the nickel at one trial heap elsewhere. African Eagle’s tank leach tests also showed very fast reaction rates. The fast leaching reaction, low acid consumption and good nickel extraction shown by these tests are good indicators for the viability and profitability of the project. The transport cost of sulphur, likely from Dar es Salaam, ‘will be a constraint,' admits Parker, though the scoping study showed the project is viable and future developments such as planned upgrades to railways and a potential oil refinery in neighbouring Uganda would ease this.
African Eagle has also identified a pair of other nickel deposits close to Dutwa that could be extracted with the same processing plant. At Ngasamo, 5km to the west, the company has an agreement with its Czech and local owners to acquire 35% once it has completed a drilling programme currently under way, and up to 50% or 75% on further exploration, evaluation and feasibility work. African Eagle recently completed the first phase of this drilling programme, which will establish a JORC inferred resource and provide material for metallurgical testing. March’s drilling update showed good nickel grades at Ngasamo over a greater thickness than Dutwa, with 36m at 1.63% nickel including 15m at 2.37%, 51m at 1.18% nickel, 57m at 0.92% nickel including 42m at 1.04%, and 78m at 0.86% nickel including 27m at 1.1%, as well as 9m at 0.27% cobalt including 3m at 0.48% and 12m at 0.17% cobalt.
More assay results announced this week continued along the same lines, showing 75m at 1.42% nickel, 84m at 1.07% nickel including 30m at 1.64%, 63m at 1.41% nickel including 45m at 1.71% and 57m at 1.25% nickel including 12m at 2.48%. Cobalt intercepts included 18m at 0.47% cobalt, 54m at 0.13%, 9m at 0.43% and 9m at 0.27% including 3m at 0.48%.
Furthermore, African Eagle holds the Zanzui nickel project, only 60km from Dutwa and ‘possibly twice as large’. Preliminary metallurgical tests showed that it shares the same low-acid leaching characteristics, with, adds Parker, ‘a little lower average nickel but good cobalt grades – so perhaps the value per tonne wouldn’t be so different from Dutwa. But we have to do more drilling there first.’
Seymour Pierce analyst Asa Bridle expects to add the new Ngasamo resource into his valuation metrics for the project shortly. Nevertheless, even at current levels he believes that the project is being underappreciated by the market: ‘with US$8.8 billion worth of nickel (340,000 tonnes at US$25,695 per tonne) already identified at Dutwa, there is clearly a disconnect between the project's value and AFE's market cap.’
The valuation should also include the rest of the portfolio that Parker has ‘backburnered’. This includes the Irugubi gold project in Tanzania, which has just been swapped with Aussie-listed Peak Resources for shares (around £2.6 million worth at the time), and a good half a dozen of Zambian projects that Parker says ‘are under negotiation’ and he ‘would consider any reasonable offer’ for.
Last August an African Eagle placing and an open offer together raised £3.4 million. To fund further developments past the pre-feasibility stage, more will be needed. To this end, Parker says he and industry guru chairman Euan Worthington are ‘talking to a number of potential strategic partners, some in the industry and others not’, adding that the company is proud of its record of being ‘s fair as possible to its existing shareholders’.
These investors have seen the shares fall from a year’s high of 11.32p to the present 4p, despite the strengthening of the nickel price. The forthcoming months should see ample news flow in the run-up to the PFS, promises Parker, two sets of new drill results and further metallurgical results from Dutwa, a resource estimate at Ngasamo, an upgrade of Dutwa’s resource estimate from inferred to indicated in a month or so and he hopes to a recalculation of the economics of the project to bring break-even costs down from their present $6.50per lb to nearer $5.50. Furthermore, Parker advises that the composition of the board is likely to change over coming years from explorers to miners as it moves closer towards development.
http://www.proactiveinvestors.co.uk/companies/news/16379/african-eagle-8-billion-of-nickel-and-counting-16379.html
Like many AIM metals explorers, African Eagle has flattered to deceive in its time on the market. However, while it has stumbled in its attempts to advance projects, it has built up a not-insignificant brood of nickel, gold and copper exploration projects. Due to the company’s small size, management last year felt forced to choose between their babies. Although the glistering gold price might seem to make those projects attractive, African Eagle has decided to plump for its nickel assets, because of their sheer size and low cost of evaluation.
Managing director Mark Parker, one of the founders of the company with former chairman John Park, also explained to Proactive Investors that ‘the exploration risk is very low’ at its Dutwa nickel project and that the exceptional metallurgy of the site will allow for good recovery rates and low-cost extraction.
Located 100km east of the well connected mining city of Mwanza and close to the main Mwanza-Nairobi trunk road, Dutwa is a nickel laterite deposit. Laterites – near-surface deposits where over many years the weather has leached away more soluble elements to leave mineable concentrations of nickel and other less soluble elements such as iron and magnesium – can be extracted with acid leaching. They have been less favoured than the vein-style nickel sulphides that traditionally were the deposit of choice, due to some expensive ‘miss-steps’ such as BHP’s Ravensthorpe laterite project, which was eventually sold for a song after US$2.1 billion of investment. But more than two thirds of nickel now comes from laterites and Parker is confident that, due to the low iron content of the Dutwa deposit, the project is definitely economic. ‘We can do it for maybe a tenth of the usual capital cost,’ he assures. ‘If Ambatovy [in Madagascar] cost $4 billion, our capital cost, even using the slightly more expensive options like tank leaching, will be $350-$500 million.’
In 2008 African Eagle announced an initial Inferred Mineral Resource estimate for Dutwa of 31 million tonnes at an average grade of 1.1% nickel and 0.034% cobalt, with a contained metal endowment of some 340,000 tonnes of nickel and 11,000 tonnes of cobalt. The company believes the resource will increase following current step-out drilling and the delineation of the nearby Ngasamo deposit, also underway. A pre-feasibility study (PFS) for Dutwa is due at the end of calendar 2010 or in early 2011.
The metallurgy is key, though, explains Parker. ‘What we have is an average nickel content of about 1%-1.5%. But whereas some other companies’ more expensive projects have huge iron content of 30-40-50% and require high temperatures and high pressures to leach out the nickel, at our deposit nature has already done a lot of that work for us - so we have less than 10% iron and are low in magnesium and low in aluminium. So, yes, it’s not the highest grade but the metallurgy means that the extraction process is straightforward. We can process very straightforwardly with tank leaching or even cheaper heap leaching.’
Column leach tests at Dutwa gave 60% to 70% nickel extraction after just 16 days, rising to 90% after four months. This compares well against rival projects, where 540 days of leaching was required to extract 80% of the nickel at one trial heap elsewhere. African Eagle’s tank leach tests also showed very fast reaction rates. The fast leaching reaction, low acid consumption and good nickel extraction shown by these tests are good indicators for the viability and profitability of the project. The transport cost of sulphur, likely from Dar es Salaam, ‘will be a constraint,' admits Parker, though the scoping study showed the project is viable and future developments such as planned upgrades to railways and a potential oil refinery in neighbouring Uganda would ease this.
African Eagle has also identified a pair of other nickel deposits close to Dutwa that could be extracted with the same processing plant. At Ngasamo, 5km to the west, the company has an agreement with its Czech and local owners to acquire 35% once it has completed a drilling programme currently under way, and up to 50% or 75% on further exploration, evaluation and feasibility work. African Eagle recently completed the first phase of this drilling programme, which will establish a JORC inferred resource and provide material for metallurgical testing. March’s drilling update showed good nickel grades at Ngasamo over a greater thickness than Dutwa, with 36m at 1.63% nickel including 15m at 2.37%, 51m at 1.18% nickel, 57m at 0.92% nickel including 42m at 1.04%, and 78m at 0.86% nickel including 27m at 1.1%, as well as 9m at 0.27% cobalt including 3m at 0.48% and 12m at 0.17% cobalt.
More assay results announced this week continued along the same lines, showing 75m at 1.42% nickel, 84m at 1.07% nickel including 30m at 1.64%, 63m at 1.41% nickel including 45m at 1.71% and 57m at 1.25% nickel including 12m at 2.48%. Cobalt intercepts included 18m at 0.47% cobalt, 54m at 0.13%, 9m at 0.43% and 9m at 0.27% including 3m at 0.48%.
Furthermore, African Eagle holds the Zanzui nickel project, only 60km from Dutwa and ‘possibly twice as large’. Preliminary metallurgical tests showed that it shares the same low-acid leaching characteristics, with, adds Parker, ‘a little lower average nickel but good cobalt grades – so perhaps the value per tonne wouldn’t be so different from Dutwa. But we have to do more drilling there first.’
Seymour Pierce analyst Asa Bridle expects to add the new Ngasamo resource into his valuation metrics for the project shortly. Nevertheless, even at current levels he believes that the project is being underappreciated by the market: ‘with US$8.8 billion worth of nickel (340,000 tonnes at US$25,695 per tonne) already identified at Dutwa, there is clearly a disconnect between the project's value and AFE's market cap.’
The valuation should also include the rest of the portfolio that Parker has ‘backburnered’. This includes the Irugubi gold project in Tanzania, which has just been swapped with Aussie-listed Peak Resources for shares (around £2.6 million worth at the time), and a good half a dozen of Zambian projects that Parker says ‘are under negotiation’ and he ‘would consider any reasonable offer’ for.
Last August an African Eagle placing and an open offer together raised £3.4 million. To fund further developments past the pre-feasibility stage, more will be needed. To this end, Parker says he and industry guru chairman Euan Worthington are ‘talking to a number of potential strategic partners, some in the industry and others not’, adding that the company is proud of its record of being ‘s fair as possible to its existing shareholders’.
These investors have seen the shares fall from a year’s high of 11.32p to the present 4p, despite the strengthening of the nickel price. The forthcoming months should see ample news flow in the run-up to the PFS, promises Parker, two sets of new drill results and further metallurgical results from Dutwa, a resource estimate at Ngasamo, an upgrade of Dutwa’s resource estimate from inferred to indicated in a month or so and he hopes to a recalculation of the economics of the project to bring break-even costs down from their present $6.50per lb to nearer $5.50. Furthermore, Parker advises that the composition of the board is likely to change over coming years from explorers to miners as it moves closer towards development.
http://www.proactiveinvestors.co.uk/companies/news/16379/african-eagle-8-billion-of-nickel-and-counting-16379.html
Friday, 7 May 2010
CryptoLogic first quarter results fail to impress
Internet casino and gaming software specialist CryptoLogic (AIM:CRP) fell 12% this morning after the company released first quarter results (3 months to March 31).
First quarter revenues fell to US$7.6 million from $9.9 million in the previous quarter, which CryptoLogic blamed on ‘subdued wagering activity’. Branded games revenue did however rise slightly, to $1.3 million from $1.2 million, while operating expenses fell 36% to $8.1 million (Q4 09: $12.6 million) and G&A expenses fell 12% to $2.2 million (Q4 09: $2.5 million). The company reported a loss of $3.2 million for the quarter.
During the first quarter, CryptoLogic increased the number of branded games substantially, to 92, up from 66 at the end of previous quarter. This was partly due to a multi-licensing deal with William Hill, Bet24 and Betsson.
Looking ahead to the rest of 2010, the Dublin headquartered group said it expected conditions to improve gradually, driven by better waging activity.
"While subdued wagering activity impacted our revenues in the first quarter, the outlook for 2010 as a whole remains encouraging. Operating costs have declined further while our revenue base is showing signs of improvement in the second quarter,” Brian Hadfield, CryptoLogic's President and CEO, said. “The start of the World Cup soccer tournament in June provides short term uncertainty, however with a strong backlog of new business we expect our results to improve gradually as the year unfolds. As would be expected, the company continues to assess its revenue streams, costs, and strategic direction as it moves towards profitability."
http://www.proactiveinvestors.co.uk/companies/news/16352/cryptologic-first-quarter-results-fail-to-impress-16352.html
First quarter revenues fell to US$7.6 million from $9.9 million in the previous quarter, which CryptoLogic blamed on ‘subdued wagering activity’. Branded games revenue did however rise slightly, to $1.3 million from $1.2 million, while operating expenses fell 36% to $8.1 million (Q4 09: $12.6 million) and G&A expenses fell 12% to $2.2 million (Q4 09: $2.5 million). The company reported a loss of $3.2 million for the quarter.
During the first quarter, CryptoLogic increased the number of branded games substantially, to 92, up from 66 at the end of previous quarter. This was partly due to a multi-licensing deal with William Hill, Bet24 and Betsson.
Looking ahead to the rest of 2010, the Dublin headquartered group said it expected conditions to improve gradually, driven by better waging activity.
"While subdued wagering activity impacted our revenues in the first quarter, the outlook for 2010 as a whole remains encouraging. Operating costs have declined further while our revenue base is showing signs of improvement in the second quarter,” Brian Hadfield, CryptoLogic's President and CEO, said. “The start of the World Cup soccer tournament in June provides short term uncertainty, however with a strong backlog of new business we expect our results to improve gradually as the year unfolds. As would be expected, the company continues to assess its revenue streams, costs, and strategic direction as it moves towards profitability."
http://www.proactiveinvestors.co.uk/companies/news/16352/cryptologic-first-quarter-results-fail-to-impress-16352.html
Mid-tier gold producer Bendigo Mining takes 20% stake in Goldstone
GoldStone (AIM:GRL) is one of the few companies in positive territory this morning, after the company announced a strategic alliance with Bendigo Mining (ASX:BDG).
As part of the alliance Bendigo Mining has subscribed for 32.7 million shares in Goldstone at 6.5 pence per share - a 45% premium to the company’s share price on 6 May. The placing will give Bendigo a 20% equity stake in Goldstone, and the potential to increase its stake through warrants to be issued as part of the agreement. Goldstone is issuing two tranches of warrants to Bendigo. The first tranche will entitle Bendigo to subscribe for 10.9 million shares at 8.5 pence per share between 18 and 30 months from the date of their issue. The second tranche will entitle Bendigo to subscribe for an additional 10.9 million shares at 11.5 pence between 24 and 36 months from their issue.
GoldStone will also offer Bendigo a seat on the board of the Company and has also entered into a technical services agreement to provide support to GoldStone in respect of any development and mining of assets.
"We are extremely pleased that through this transaction GoldStone has gained a mid-tier miner with a strong balance sheet as a long term investor who is prepared to make a significant investment in the Company at a material premium to the market price,” Jurie Wessels, Chief Executive of GoldStone, commented. “We believe that Bendigo shares the optimism we have for our West African assets and that the alliance will add considerable value as we endeavour to advance our exploration projects into open cast or underground mining operations."
Rod Hanson, Managing Director and Chief Executive of Bendigo commented: "We are very excited to enter into this alliance with GoldStone and believe it provides a low risk expansion into West Africa, which is one of the most attractive locations for new gold discoveries globally. We believe that GoldStone has the right people in the right place and has done an excellent job in assembling a strong portfolio of exploration assets in Ghana and Senegal. Our plan is for a long term relationship in which GoldStone and Bendigo will grow and prosper together in West Africa."
Bendigo Mining is funding the investment from its cash resources, which were A$57.4 million as at 31 March 2010. Bendigo is expected to produce 80,000 to 90,000 oz of gold in the financial year ending 30 June 2010 from its two underground gold mines, the Henty Gold Mine on the West Coast of Tasmania and the Kangaroo Flat Mine in Bendigo, Victoria.
http://www.proactiveinvestors.co.uk/companies/news/16351/mid-tier-gold-producer-bendigo-mining-takes-20-stake-in-goldstone-16351.html
As part of the alliance Bendigo Mining has subscribed for 32.7 million shares in Goldstone at 6.5 pence per share - a 45% premium to the company’s share price on 6 May. The placing will give Bendigo a 20% equity stake in Goldstone, and the potential to increase its stake through warrants to be issued as part of the agreement. Goldstone is issuing two tranches of warrants to Bendigo. The first tranche will entitle Bendigo to subscribe for 10.9 million shares at 8.5 pence per share between 18 and 30 months from the date of their issue. The second tranche will entitle Bendigo to subscribe for an additional 10.9 million shares at 11.5 pence between 24 and 36 months from their issue.
GoldStone will also offer Bendigo a seat on the board of the Company and has also entered into a technical services agreement to provide support to GoldStone in respect of any development and mining of assets.
"We are extremely pleased that through this transaction GoldStone has gained a mid-tier miner with a strong balance sheet as a long term investor who is prepared to make a significant investment in the Company at a material premium to the market price,” Jurie Wessels, Chief Executive of GoldStone, commented. “We believe that Bendigo shares the optimism we have for our West African assets and that the alliance will add considerable value as we endeavour to advance our exploration projects into open cast or underground mining operations."
Rod Hanson, Managing Director and Chief Executive of Bendigo commented: "We are very excited to enter into this alliance with GoldStone and believe it provides a low risk expansion into West Africa, which is one of the most attractive locations for new gold discoveries globally. We believe that GoldStone has the right people in the right place and has done an excellent job in assembling a strong portfolio of exploration assets in Ghana and Senegal. Our plan is for a long term relationship in which GoldStone and Bendigo will grow and prosper together in West Africa."
Bendigo Mining is funding the investment from its cash resources, which were A$57.4 million as at 31 March 2010. Bendigo is expected to produce 80,000 to 90,000 oz of gold in the financial year ending 30 June 2010 from its two underground gold mines, the Henty Gold Mine on the West Coast of Tasmania and the Kangaroo Flat Mine in Bendigo, Victoria.
http://www.proactiveinvestors.co.uk/companies/news/16351/mid-tier-gold-producer-bendigo-mining-takes-20-stake-in-goldstone-16351.html
Gold passes $1200/ounce as global equities take a dive
Gold spiked to $1200/oz last night, hitting a new 2010 and all time high. Demand for the yellow metal defied a rout in US equities, and a rising US dollar, which if often applies downward pressure on gold. However, yesterday's spike in gold was due to its appeal as a safe-haven asset by investors amid rising volatility in currency and stock markets, which are heavily impacted by the ongoing European debt crisis.
In the latest development, Greece agreed to massive budget cuts that will amount to €30 billion over the next three years on top of the economic austerity measures already implemented in order to secure a €110 billion bailout from the European Union and International Monetary Fund (IMF).
Germany, which will account for the bulk of the financial aid package, said it would not provide any funds for Greece unless it passes economic reforms to keep its soaring budget deficit under control, forcing the country to radically cut spending.
The EU’s stats agency Eurostat has recently revised Greece’s 2009 deficit to 13.6% of the GDP from the previous estimate of 12.9%. The county is aiming to bring the deficit within the EU’s cap of 3% by 2014.
Greece’s fiscal crisis has been weighing on the euro for months to weaken it against the US dollar and limit gains in gold, which is seen as an alternative investment to the greenback and usually moves inversely to the American currency. However, gold has lately defied this trend, coming close to topping all time highs on safe-haven buying.
http://www.proactiveinvestors.co.uk/companies/news/16338/gold-passes-1200ounce-as-global-equities-take-a-dive-16338.html
In the latest development, Greece agreed to massive budget cuts that will amount to €30 billion over the next three years on top of the economic austerity measures already implemented in order to secure a €110 billion bailout from the European Union and International Monetary Fund (IMF).
Germany, which will account for the bulk of the financial aid package, said it would not provide any funds for Greece unless it passes economic reforms to keep its soaring budget deficit under control, forcing the country to radically cut spending.
The EU’s stats agency Eurostat has recently revised Greece’s 2009 deficit to 13.6% of the GDP from the previous estimate of 12.9%. The county is aiming to bring the deficit within the EU’s cap of 3% by 2014.
Greece’s fiscal crisis has been weighing on the euro for months to weaken it against the US dollar and limit gains in gold, which is seen as an alternative investment to the greenback and usually moves inversely to the American currency. However, gold has lately defied this trend, coming close to topping all time highs on safe-haven buying.
http://www.proactiveinvestors.co.uk/companies/news/16338/gold-passes-1200ounce-as-global-equities-take-a-dive-16338.html
Smallcap news: Medusa Mining, Goldstone, Caledonia Mining, Terrace Hill, Tanfield, Capital Pub Co
Medusa Mining (MML), which is listed on the ASX, TSX and AIM markets, reported that drilling at its Lingig Project has continued to intersect copper mineralisation in two geological settings. The most recent and most northerly drill hole returned 154.60 metres at 0.45% copper (with last 45.90 metres averaging 0.65% copper at a 0.3% copper cut-off) but was abandoned in strong mineralisation.
GoldStone (GRL), a junior exploration company focused on gold in Ghana, Senegal and Gabon, announce a strategic alliance with Bendigo Mining (ASX: BDG), a mid-tier Australian gold producer. Bendigo has agreed to subscribe for 32.7 million shares at a premium of 45% to the closing price on 6 May.
Capital Pub Company (CPUB) continued to defy the wider pub industry, confirming that trading at its London properties is ‘significantly ahead of last year’. The pub owner and operator also announced the sale of the freehold of the Marquis of Granby for a consideration of £3.49 million.
Caledonia Mining (AIM:CMCL) said it had taken ‘immediate steps’ to address electricity supply concerns to its Blanket Gold Mine in Zimbabwe. The company has ordered the first of several planned 2.5MVA diesel generators.
UK property development and investment group, Terrace Hill Group plc (THG) announced that it has let 24,352 sq ft of office space at its mixed-use development at 129 Wilton Road, Victoria. 88% of the office space has now been leased. Terrace Hill has let the space on a 15 year lease at £40 per sq. ft.
Tanfield Group (TAN), once a darling of the junior market, reported pretty grim numbers for the year ended 31 December 2009. Turnover slumped from £146 million in 2008 to £58 million in 2009, while the company swung to an operating loss of £21.4 million (2008: operating profit £1.3 million). Net cash fell from £11.1 million to £5.4 million. During 2009, the company cut staff costs by 42%. Tanfield’s Chairman Jon Pither said the company was expecting 2010 to be ‘challenging’.
Alliance Pharma (AIM: APH) said Nigel Wray has bought a further 750,000 shares in the company this week, taking his holding to 25,269,995 shares, or 11.08% of the capital. He is still the group's second largest shareholder behind chief executive John Dawson.
http://www.proactiveinvestors.co.uk/companies/news/16349/smallcap-news-medusa-mining-goldstone-caledonia-mining-terrace-hill-tanfield-capital-pub-co-16349.html
GoldStone (GRL), a junior exploration company focused on gold in Ghana, Senegal and Gabon, announce a strategic alliance with Bendigo Mining (ASX: BDG), a mid-tier Australian gold producer. Bendigo has agreed to subscribe for 32.7 million shares at a premium of 45% to the closing price on 6 May.
Capital Pub Company (CPUB) continued to defy the wider pub industry, confirming that trading at its London properties is ‘significantly ahead of last year’. The pub owner and operator also announced the sale of the freehold of the Marquis of Granby for a consideration of £3.49 million.
Caledonia Mining (AIM:CMCL) said it had taken ‘immediate steps’ to address electricity supply concerns to its Blanket Gold Mine in Zimbabwe. The company has ordered the first of several planned 2.5MVA diesel generators.
UK property development and investment group, Terrace Hill Group plc (THG) announced that it has let 24,352 sq ft of office space at its mixed-use development at 129 Wilton Road, Victoria. 88% of the office space has now been leased. Terrace Hill has let the space on a 15 year lease at £40 per sq. ft.
Tanfield Group (TAN), once a darling of the junior market, reported pretty grim numbers for the year ended 31 December 2009. Turnover slumped from £146 million in 2008 to £58 million in 2009, while the company swung to an operating loss of £21.4 million (2008: operating profit £1.3 million). Net cash fell from £11.1 million to £5.4 million. During 2009, the company cut staff costs by 42%. Tanfield’s Chairman Jon Pither said the company was expecting 2010 to be ‘challenging’.
Alliance Pharma (AIM: APH) said Nigel Wray has bought a further 750,000 shares in the company this week, taking his holding to 25,269,995 shares, or 11.08% of the capital. He is still the group's second largest shareholder behind chief executive John Dawson.
http://www.proactiveinvestors.co.uk/companies/news/16349/smallcap-news-medusa-mining-goldstone-caledonia-mining-terrace-hill-tanfield-capital-pub-co-16349.html
BP updates on Gulf of Mexico clean-up and well control operations
Oil Major BP (LSE: BP) updated on developments in the response to the oil spill from the MC252 well in the Gulf of Mexico, following the explosion of a rig contracted by BP and owned by Transocean, saying work continues to attempt to bring MC252 under control, to stop the flow of oil and to contain the oil subsea.
The containment dome arrived on location yesterday, May 6, from Port Fourchon, Louisiana, ready to be deployed. Once lowered to the sea bed, the next steps will be to connect the 40x24x14 feet steel dome, which weighs almost 100 tons, to a vessel on the surface. Once this operation is complete it will be possible to assess the effectiveness of the solution.
Work on the first relief well, which began on Sunday May 2, continues. It is expected to take some three months to complete.
Work continues to collect and disperse oil that has reached the surface of the sea. More than 260 vessels are being used, including skimmers, tugs, barges and recovery vessels. To date the oil spill response team has recovered about 30,000 barrels of oil-water mix, the company said.
The total length of deployed boom is now over 700,000 feet as part of the efforts to stop oil reaching the coast. Some one million feet is available and more than 300,000 feet is on order.
Suitable weather conditions allowed controlled burning of surface oil to be carried out.
A BP-led effort to address shoreline clean up continues. More than 4,000 people have been trained, out of about 30,000 volunteers, to deal with oil as it comes onshore, the company added.
http://www.proactiveinvestors.co.uk/companies/news/16348/bp-updates-on-gulf-of-mexico-clean-up-and-well-control-operations-16348.html
The containment dome arrived on location yesterday, May 6, from Port Fourchon, Louisiana, ready to be deployed. Once lowered to the sea bed, the next steps will be to connect the 40x24x14 feet steel dome, which weighs almost 100 tons, to a vessel on the surface. Once this operation is complete it will be possible to assess the effectiveness of the solution.
Work on the first relief well, which began on Sunday May 2, continues. It is expected to take some three months to complete.
Work continues to collect and disperse oil that has reached the surface of the sea. More than 260 vessels are being used, including skimmers, tugs, barges and recovery vessels. To date the oil spill response team has recovered about 30,000 barrels of oil-water mix, the company said.
The total length of deployed boom is now over 700,000 feet as part of the efforts to stop oil reaching the coast. Some one million feet is available and more than 300,000 feet is on order.
Suitable weather conditions allowed controlled burning of surface oil to be carried out.
A BP-led effort to address shoreline clean up continues. More than 4,000 people have been trained, out of about 30,000 volunteers, to deal with oil as it comes onshore, the company added.
http://www.proactiveinvestors.co.uk/companies/news/16348/bp-updates-on-gulf-of-mexico-clean-up-and-well-control-operations-16348.html
FTSE 350 news summary: RBS, Easyjet, ITV, Catlin Group
With all eyes on the election result, and expectations of a pretty poor performance for equity markets today, news flow from the FTSE 100 was very light.
The Royal Bank of Scotland Group (LSE:RBS) reported today, announcing a first quarter operating profit of £713 million, as the partially nationalised bank said it benefited favourable credit trends and strong seasonal results from its Global Banking & Markets business.
Meanwhile in the FTSE 250, investor’s found slightly more to chew on.
EasyJet (LSE:EZJ) reported passenger statistics for the month ending 30 April 2010, which were impacted by the volcanic ash cloud. Before this disruption EasyJet expected passenger numbers in April to be around 4.3 million representing growth in passenger numbers of 14% and a load factor of 86.2%. Due to the large number of cancellations however, Easyjet’s load factor came in at 85.2% and passenger numbers were 3.5 million.
Broadcaster ITV (LSE:ITV) released an interim management statement this morning ahead of its AGM. Group revenues for the three month period ended 31 March 2010 rose 6% to £450 million, as advertising revenues continued to recover from their low in 2009. The FTSE 250 constituent remained cautious however, stating that the outlook for the second half was ‘highly uncertain’.
Insurer and Reinsurer, Catlin Group (LSE:CGL) also released its interim management statement, reporting a 9% rise in gross premiums written to $1.3 billion, 39% increase in premiums written by non-London hubs and 0.5% increase in average weighted premium rates across the group. The company’s strongest gains came in property insurance.
http://www.proactiveinvestors.co.uk/companies/news/16347/ftse-350-news-summary-rbs-easyjet-itv-catlin-group-16347.html
The Royal Bank of Scotland Group (LSE:RBS) reported today, announcing a first quarter operating profit of £713 million, as the partially nationalised bank said it benefited favourable credit trends and strong seasonal results from its Global Banking & Markets business.
Meanwhile in the FTSE 250, investor’s found slightly more to chew on.
EasyJet (LSE:EZJ) reported passenger statistics for the month ending 30 April 2010, which were impacted by the volcanic ash cloud. Before this disruption EasyJet expected passenger numbers in April to be around 4.3 million representing growth in passenger numbers of 14% and a load factor of 86.2%. Due to the large number of cancellations however, Easyjet’s load factor came in at 85.2% and passenger numbers were 3.5 million.
Broadcaster ITV (LSE:ITV) released an interim management statement this morning ahead of its AGM. Group revenues for the three month period ended 31 March 2010 rose 6% to £450 million, as advertising revenues continued to recover from their low in 2009. The FTSE 250 constituent remained cautious however, stating that the outlook for the second half was ‘highly uncertain’.
Insurer and Reinsurer, Catlin Group (LSE:CGL) also released its interim management statement, reporting a 9% rise in gross premiums written to $1.3 billion, 39% increase in premiums written by non-London hubs and 0.5% increase in average weighted premium rates across the group. The company’s strongest gains came in property insurance.
http://www.proactiveinvestors.co.uk/companies/news/16347/ftse-350-news-summary-rbs-easyjet-itv-catlin-group-16347.html
FTSE 100 set to open sharply lower as hung parliament and rout in US equities weigh
Britain woke up the prospect of a hung parliament, as results from yesterday’s voting continued to trickle in. By 7:30 am the Conservative party was in the lead with 285 seats, Labour on 231 seats and the Liberal Democrats, to many commentators surprise on only 50 seats. To secure a majority in the Houses of Parliament one party needs to secure 326 seats, which based on projections will not happen for the Conservative party. Labour rhetoric throughout the night has suggested they may try to form a coalition government with the Liberals, but it is not yet certain whether the two parties combined seats would even achieve that.
The result of the election weighed on FTSE 100 futures, pointing to a 130 point drop at the open, which was would be one of the sharpest moves in 2010, but investor’s were more spooked by a rout in the United States last night, were both the Dow Jones Industrial Index, NASDAQ and S&P 500 all fell more than 3%. At one point, the Dow actually fell more than 900 points, or nearly 10% - the worst fall ever recorded, but sources are now pointing to an error by a large bank using high frequency trading techniques (software that can execute large volumes of trades).
Many analysts in the United States were equally surprised by price action in spot Gold, which soared above $1200/ounce, smashing its previous all time record. Gold is currently trading at $1203 an ounce, and defied a stronger US dollar last night and a rout in equity markets and oil futures.
Gold bulls however reiterated their view that the surge in gold was safe haven buying as investors continue to fret over the risk of Greece’s debt problem spreading to other countries in the European Union, with particular concerns surrounding Spain and Portugal.
http://www.proactiveinvestors.co.uk/companies/news/16345/ftse-100-set-to-open-sharply-lower-as-hung-parliament-and-rout-in-us-equities-weigh-16345.html
The result of the election weighed on FTSE 100 futures, pointing to a 130 point drop at the open, which was would be one of the sharpest moves in 2010, but investor’s were more spooked by a rout in the United States last night, were both the Dow Jones Industrial Index, NASDAQ and S&P 500 all fell more than 3%. At one point, the Dow actually fell more than 900 points, or nearly 10% - the worst fall ever recorded, but sources are now pointing to an error by a large bank using high frequency trading techniques (software that can execute large volumes of trades).
Many analysts in the United States were equally surprised by price action in spot Gold, which soared above $1200/ounce, smashing its previous all time record. Gold is currently trading at $1203 an ounce, and defied a stronger US dollar last night and a rout in equity markets and oil futures.
Gold bulls however reiterated their view that the surge in gold was safe haven buying as investors continue to fret over the risk of Greece’s debt problem spreading to other countries in the European Union, with particular concerns surrounding Spain and Portugal.
http://www.proactiveinvestors.co.uk/companies/news/16345/ftse-100-set-to-open-sharply-lower-as-hung-parliament-and-rout-in-us-equities-weigh-16345.html
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