Market update - 26/10/2021
Companies: 88E ANGS I3E
i3 Energy indicated that Q3 2021 production amounted to 13,740 boe/d (WHIe: 13,742 boe/d) and that production in September amounted to 18,985 boe/d (WHIe: 18,834 boe/d). The company indicated that it now forecasts net operating income (“NOI” = revenue minus royalties, opex, transportation and processing) to be $US 65.7m for 2021 and $US 119.1m for the next twelve months starting 1 October 2021 – in line with our assessment that i3 Energy is on the cusp of generating more than $US 100m of cash fl
Companies: i3 Energy Plc
PetroTal (PTAL LN/TAL CN)C; Target of £0.65 per share: Production of ~15,500 bbl/d – • Bretana’s ten-day average field production, ended September 27, was 15,494 bbl/d. This represents a small increase compared to ~15.4 mbbl/d, announced two weeks ago. This is very encouraging suggesting the BN-8H well is performing very well and that overall production efficiency is high with the water system working well. This also augurs well for th
Companies: AOI CHAR DNO DNO ECHO HUR I3E IOG TAL PPC RBD SLE SAVE SQZ TTE TGL
The current spot prices for Brent crude oil, WTI crude oil and US benchmark natural gas are circa $78/b, $74/b and $5.8/mmbtu, respectively. Natural gas prices in particular have spiked in the context of the acute global energy crisis. We are changing our 2021 and 2022 WTI crude oil price assumptions to $67.5/b and $78.0/b, respectively, up from $65.7/b and $73.0/b. We are changing our 2021 and 2022 US benchmark natural gas price assumptions to $3.95/mmbtu and $4.50/mmbtu, respectively, up from
Market update - 27/09/2021
i3 Energy announced its interim results for the period ended 30 June 2021. Reported production of 9,095 boe/d was marginally better than what we had modelled, 8,950 boe/d, and resulted in free cash flow generation of £2.2M, marginally better than what we had modelled, £1.9M. We were surprised by the strength of the dividend i3 Energy announced in respect of 1H 2021 of 0.2p/sh or £2.2M – a clear statement by the board that the return of cash to shareholders will be a priority.
Calima Energy (CE1 AU)C; Target of A$0.75 per share: Brooks drilling update – The average of the four well program, over their respective 30-day initial production rates, was 176 boe/d (75% oil) per well. There was a significant variation in production results between the 4 wells. The variability was consistent with the results since Blackspur started drilling the Sunburst in 2014 and the average production of the four wells was close
Companies: XOM XOM CNE CNE CE1 DNO DNO GENL HUR I3E JSE TETY TETY
i3 Energy announced that its first two Marten Hills Clearwater wells (drilled in late July) have cleaned-up and are now flowing sales volumes at a combined gross rate of 238 b/d of oil (50% I3E). The company also indicated that production from its Wapiti acquisition (completed on 20 July 2021), after recompletion work, is 171 boe/d greater than expected (now running at 471 boe/d). The company also announced that at Wapiti the company's participation in 2 wells that will be brought onstream short
Market update - 09/09/2021
Companies: BLOE JSE I3E
We are providing the market with our first complete set of financial statement projections for i3 Energy since the company entered Canada and are using the opportunity to provide background on the i3 Energy investment opportunity. i3 Energy's actual financial and operational results are almost certain to show more production growth, investment and cashflow than we have modelled, given we have assumed only announced drilling/remediation work, workovers to maintain base production at current level
While we were away….
….Joiners 5 new ones over last 3 weeks:
Yooma Wellness Inc (AQSE: YOOM), a global vertically integrated wellness platform that develops and markets a portfolio of CBD and wellness brands, announces it has joined the AQSE Growth Market. Yooma, together with its European deal coordinator, Chrystal Capital Partners LLP, have raised gross proceeds of GBP7.5m , at a price of C$0.90 (£0.5232) per share. Lorne Abony, Chairman of Yooma, said: "Yooma's listing on the AQSE provides
Companies: AXS ARE B90 I3E MSYS ORR SEN SUR SNX VAST
Market update - 23/08/2021
Calima Energy (CE1 CN) C: Target of A$0.40 per share: Starting drilling programme at Thorsby - The 3 well Leo drilling program has commenced in the Sparky Formation in the Thorsby area of Alberta. The Leo #1 well is presently at ~2,000 m measured depth. The well is expected to complete drilling this weekend, following which Leo #2 will commence drilling from the same pad. IP90 production rates per well are ~274-460 bbl/d.
Companies: XOP CE1 HUR JSE WPL GENL I3E IHC NOG SDX
i3 Energy has provided a broad and, we believe, materially positive operational and financial update. We believe the most significant new information is that i) the Cenovus acquisition is expected to be effective from 1 April 2021 (reducing the effective consideration) and ii) i3 Energy has increased its “net operating income” guidance to $US94.8m (from $75.3m) due principally to rising commodity prices and, we believe, better netbacks (higher cashflow) from the Cenovus acquisition. We incr
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Companies: Sylvania Platinum Ltd.
We are initiating coverage of VAST Resources (VAST), which has wholly-owned Baita Plai and Manaila polymetallic mines plus an interest in two exploration projects, all located in Romania. At this stage, Baita Plai is the main driver for our valuation as it is currently being ramped up to 14kt per month. As such, we expect Baita Plai’s Cu eq output to reach c 2.4ktpa in FY23F followed by 3.3ktpa in FY24F. This, coupled with Manaila’s potential re-start of an additional 3ktpa of Cu eq over the sho
Companies: Vast Resources plc
Phoenix copper today provides an update on its ground geophysical survey over the Red Star prospect near its Empire copper project in Idaho. The Red Star skarn mineralisation (lead and silver ± copper, zinc) is associated with magnetite; the survey just undertaken was to better understand the distribution and orientation of magnetite to find potential mineralisation and to inform the location and direction of a further drilling programme.
Companies: Phoenix Copper Ltd. (United Kingdom)
We see the UK Government’s Net Zero Strategy as being overall helpful but not especially definitive. Amongst our coverage group, Drax Group (DRX LN) and Velocys (VLS LN) benefit from the Humberside CCS cluster prioritisation and Velocys from SAF support. The amount of renewables is likely to boost the need for flexibility solutions where Drax, Gore Street (GSF LN) and SIMEC Atlantis (SAE LN) can benefit. Hydrogen companies ITM (ITM LN) and Powerhouse Energy (PHE LN) are likely to find support. T
Companies: ADN DRX GSF ITM NESF PHE SAE SIT STRLNG TLG VLS
Companies: Shanta Gold Limited
Today’s IPO of Tungsten West (TUN-LON) unlocks a valuable, long term revenue stream for Hargreaves. This comprises a £1m per annum fee (first payment next month) as well as a mining services contract once the mine recommences production. The resulting EPS upgrades are 6% and 7% in FY22 and FY23 respectively, followed by 9% in FY24 with the first partial contribution from the mining services contract. This continues Hargreaves’ impressive recent run of forecast upgrades and reinforces our convict
Companies: Hargreaves Services plc
No Joiners Today.
No Leavers Today.
What’s cooking in the IPO kitchen?
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz. Offer TBA. Due early Nov.
Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties providing investors with exposure
Companies: SYS1 ARE SO4 SNG TMG TMT OHG IDE KIBO MRL
Shanta Gold (AIM: SHG) has, this morning, announced its production and operational results for the quarter ended 30th September 2021 – see Fig 1. Operationally this was a slightly weaker than expected quarter but very promising from the corporate side with a new five-year plan announced, an 0.10cps interim dividend announced and a resource update at the West Kenya Project (WKP).
QoQ production was flat at 14,194 oz and AISC rose to $1,480/oz caused by a temporary drop in grade as well as hig
Oil posted the longest stretch of weekly advances since 2015 as OPEC+ producers only modestly supply the market and as US crude supplies shrink.
Crude futures rose 1.5% Friday in New York, up for a ninth straight week. President Joe Biden said Thursday night that Americans should expect high gasoline prices to continue into next year because of supply being withheld by OPEC and other foreign oil producers. Stockpiles at the biggest US storage hub are draining to levels last seen when crude pr
Companies: FO 88E DEC EME GTC TRIN UOG WEN
Trifast has released a good interim trading update ahead of its interim results due on 23 November. Overall trading has been in line with management expectations at “both revenue and profit levels” since the AGM update in July although this belies the strength of the Group's top line performance in our view. We remain buyers.
Companies: Trifast plc
Rio’s investors day was focused on two of the most critical mining industry thematics in today’s times, i.e. green and growth. The announced measures couldn’t have materialised at a better time, given the (recent) woes pertaining to governance and the iron ore market sell-off. Remember, considering Rio’s enviable balance sheet strength, it has the flexibility to pursue the targeted plans with rigorously and, at the same time, maintain ‘relative’ shareholder reward attractiveness. Hence, we reite
Companies: Rio Tinto plc
Anglo Asian Mining* (AAZ LN) - BUY – 180p – 4.5c special dividend
BeMetals (BMET CN) –– Drilling commences at South Mountain, Idaho
Condor Gold* (CNR LN) – BUY, valuation 102.5p – Progress of the La India feasibility study
Hochschild (HOC LN) - Hochschild to spin off rare earth assets
Rambler Metals and Mining* (RMM LN) – BUY, fair value 10.7p - Ming mine underground drilling programme demonstrates grade and width improvements at depth
SolGold* (SOLG LN) – Tandayama-America initial resour
Companies: BMET AAZ CNR HOC RMM SOLG
Tungsten West (TUN.L) has joined AIM. Tungsten West is the 100% owner and operator of the historical Hemerdon tungsten and tin mine located near Plymouth in southern Devon. Hemerdon represents the world's third largest tungsten mineral resource, with a JORC (2012) compliant Mineral Resource Estimate of approximately 325Mt at 0.12 WO3. Capital raised on Admission: £39m. Anticipated Mkt Cap: £106.2m.
Future Metals NL (ASX:FME, FME.L) (formerly named Red Emperor Resources NL) had joined AIM
Companies: SOLI RBD ALU ATQT BBI CWR DRV ORCP WATR
Adriatic Metals (“ADT”) announced on 13th October that it has raised a cumulative US$244.5m (~£178m) via a combination of equity, senior debt and a copper stream. A total of ~49m new shares were issued at a price of GBp 1.5174/sh, which was a discount of ~11% to the 10-day WVAP price to 12th October. The main use of the proceeds is for the construction and working capital requirements of Adriatic’s fully permitted flagship Vareš project, which has a capital cost of US$168m as outlined in the Def
Companies: Adriatic Metals Plc Shs Chess Deposit Interests Repr 1 Sh
Botswana Diamonds (BOD LN) – £550,000 fund-raising
Castillo Copper (CCZ LN) – IP Survey identifies potential drill targets at Luanshya
KEFI Gold and Copper* (KEFI LN) – Security incident resolved
Kore Potash (KP2 LN) – Quarterly operations update
Petropavlovsk (POG LN) – Q3 update highlights recovering production at own mines with increasing POX Hub utilisation
Sibanye-Stillwater (SSW JSE) – In talks to buy Brazilian projects for $1bn
Strategic Minerals* (SML LN) – £400,000 fund-raising
Companies: BOD KEFI KP2 POG SML CCZ SSW