PROACTIVE NEWS SUMMARY: ENK, Anglesey Mining, African Minerals, Bullabulling Gold, FacebookReported by Proactive Investors on Friday, 27 July 2012 (on July 27, 2012)
|
Philippines focused nickel mine developer *ENK (LON:ENK)* stole the limelight today after revealing that it had received an approach to buy the company.
ENK said talks were at an early stage and "there can be no guarantee that a formal takeover offer will be made".
It also told investors that any offer would have to be at a ‘significant premium’ to current prices in order to recognise the full value of its assets and significant technological expertise – yesterday the shares closed at 13.75p and ENK says it has a net asset value of 28p.
ENK shares were up 3.25p, or 23.5 per cent, trading at 17p each at 12:30 on AIM.
The company also highlights its strong cash position, pointing out that it already has US$30 million in cash and it is due another US$11 million over the next five months. And it is currently finalising a bankable feasibility study for the Acoje project.
Indeed, in yesterday’s quarterly results, ENK confirmed it was fully funded to complete the pivotal study, and it expects to do so within the current quarter. It also said that talks are proceeding to secure offtake sales agreements for the mine’s nickel.
*Anglesey Mining (LON:AYM)* also did very well today after striking a deal with Intermine over royalty payments.
The company, which also released full year results today, told investors this means it will no longer have to make annual advance payments to Intermine.
It also means no payments will be due to Intermine from any mineral production at the Paris Mountain zinc-copper-lead project in Wales, which is now the subject of exploration and pre- feasibility work.
Anglesey will pay C$1 million in cash (£630,000) and 2 million company shares to discharge all payments due to Intermine, which will cancel the royalty agreement inked in May 1998.
At the Parys, there is estimated to be a total historical resource of more than 7 million tonnes with more than 9 per cent combined copper, lead and zinc.
In its full year statement, the firm said it had been another "successful year" highlighted by the establishment of associate Labrador Iron Mines (in which it holds 26 per cent) as a fully-fledged iron ore miner and the only independent mining company operating in the Labrador Trough.
In the year to March 31, the firm posted a net income of £19.1 million (2011: loss: £1.8 mln), chiefly as a result of the book gain on its holding in LIM, it said.
Looking ahead, chairman John F Kearney said: "The board believes that Anglesey Mining is now very well placed to generate significant shareholder value over the next few years from both Parys Mountain and Labrador Iron.
"The scoping study on the Parys Mountain project is scheduled for completion in the autumn and in the meantime exploration drilling is continuing.
"In Canada, LIM's iron ore production is targeted to grow to 5 million tonnes per year by 2015. We remain convinced that any improvement in the world economies and the return of investor confidence in the mining sector will be reflected in the share prices of both Labrador Iron and Anglesey Mining."
Shares in Anglesey rallied 11.5 percent to 12 pence on today’s news.
Proactive Investors also covered a note from Goldman Sachs, which said it still saw value in west African iron ore producers despite the current low price for the commodity.
Goldman rates *African Minerals (LON:AMI)* a 'buy' with a 12 month price target of 685 pence, London Mining is also a 'buy' with a target price of 335 pence (current share price: 144.5 pence), while Bellzone is a 'buy' with a 35 pence price target.
The iron ore spot price has been trending southwards recently to reach US$119 per tonne - the lowest in the year so far but Goldman analysts see upside potential to that price beginning later in the year.
Analyst Fawzi Hanano said steel demand was in a cyclically weak period with declining Chinese domestic prices putting pressure on steel input prices - mainly iron ore.
But the analyst doesn't expect that to last.
"We continue to believe the iron ore price will remain supported at current levels, and see upside in late 2012 and into 2013," he said.
"While we cannot rule out a further decline in the short term, we believe pricing at this level is not sustainable, as high cost Chinese capacity is likely to swing offline, tightening the market and increasing demand for imported ore, particularly while strong Chinese steel production persists."
The most recent Chinese data for March to June this year showed steel production has broken back above 60 mln tonnes per month, and the average run-rate for 2012 in the year to date implies production for the year of 710 mln tonnes.
As a result of near term iron ore forecasts and exchange rates, Goldman has lowered its earnings estimates for 2012 - 2014 and price targets for* African Minerals (LON:AMI)*, *London Mining (LON:LOND)*, *Bellzone Mining (LON:BZM)*, Northland Resources and Kumba Iron Ore.
Another in-depth article by Proactive Investors was dedicated to* Bullabulling Gold (LON:BGL, ASX:BAB)*, which is well advanced with the pre-feasibility study on its key project in western Australia with completion due by the end of the year.
The gold miner said it had set the mining parameters for Bullabulling and was now working on the key cost estimates.
Brett Lambert, the company’s managing director, said the last three months had been transformational with solid progress made towards determining capital and operating costs.
He added that the company is also working on new drilling programmes to expand the resource, with infill RC drilling underway and diamond drilling due to commence in the current quarter.
Bullabulling’s total resource totals approximately 3.4 million ounces, at a cut-off grade of 0.5 g including the resources at the satellite Gibraltar prospect.
The mine will be an open pit operation and the company said today it had produced the pit layouts and production profiles.
These will be the basis of the final round of pit optimisations, leading on to detailed open pit design and production scheduling.
Processing will consist of conventional single stage crushing followed by a SAG mill/ball mill combination as this was the most cost effective and had the lowest technical risk.
The current intention is to use cyanide leaching exclusively in a conventional carbon in leach (CIL) process, Lambert added. A tailings thickener will be incorporated in to the circuit.
The new drilling will follow on from a 3D programme that showed the gold mineralisation at Bullabulling is associated with the largest fold in the region at the top and bottom contacts of a regionally extensive ultramafic unit.
Satellite fields Gibraltar and Geko are also associated with similar folds, but on a smaller scale.
Meanwhile, we took a closer look at yesterday’s disappointing earnings report from social network* Facebook (NASDAQ:FB)*.
Shares in the social network fell US$2.50 or 8.5 per cent in deals yesterday, but tumbled a further US$2.87 or almost 11 per cent in after-hours trading, dragging the stock below US$24.
Mark Zuckerberg’s firm posted a 32 per cent increase in revenues to US$1.18 bln (£750 mln) in the three months to June 30, but growth was the slowest seen since the first quarter of 2011.
Facebook made a net loss of US$157 mln, or 8 cents a share, in the quarter owing to tax charges after going public.
Underlying profits excluding the fees rose 3.5 per cent to US$295 mln, or 12 cents per share, from US$285 mln in the second quarter last year in line with Wall Street estimates.
Capital expenditure tripled to US$413 mln last quarter and the company warned that operating expenses would be higher in the second half of 2012 than last year.
215 million more people logged into Facebook each month, bringing the monthly active users to 955 mln, up from 740 mln last year.
On a daily basis, 32 per cent more people clicked on the site, with 552 mln daily members.
There are concerns over the company’s falling advertising revenues due to increasing access via smartphones, which showed a 67 per cent rise from last year.
Advertising fees from companies are smaller on smartphones as the diminutive screens make it harder to sell space.
Chief executive Mark Zuckerberg, who first launched the website from his Harvard dorm, said that mobile is a “huge opportunity” for the company, which is investing “very heavily” in mobile apps.
However, investors did not warm to the lack of financial guidance from the internet giant, which offered no proof of a turnaround in fortunes as the business continues to slow down.
Zuckerberg, who watched US$2.7 bln disappear from his fortune yesterday, also denied reports that Facebook is planning to launch its own smartphone.
Philippines focused nickel mine developer *ENK (LON:ENK)* stole the limelight today after revealing that it had received an approach to buy the company.
ENK said talks were at an early stage and "there can be no guarantee that a formal takeover offer will be made".
It also told investors that any offer would have to be at a ‘significant premium’ to current prices in order to recognise the full value of its assets and significant technological expertise – yesterday the shares closed at 13.75p and ENK says it has a net asset value of 28p.
ENK shares were up 3.25p, or 23.5 per cent, trading at 17p each at 12:30 on AIM.
The company also highlights its strong cash position, pointing out that it already has US$30 million in cash and it is due another US$11 million over the next five months. And it is currently finalising a bankable feasibility study for the Acoje project.
Indeed, in yesterday’s quarterly results, ENK confirmed it was fully funded to complete the pivotal study, and it expects to do so within the current quarter. It also said that talks are proceeding to secure offtake sales agreements for the mine’s nickel.
*Anglesey Mining (LON:AYM)* also did very well today after striking a deal with Intermine over royalty payments.
The company, which also released full year results today, told investors this means it will no longer have to make annual advance payments to Intermine.
It also means no payments will be due to Intermine from any mineral production at the Paris Mountain zinc-copper-lead project in Wales, which is now the subject of exploration and pre- feasibility work.
Anglesey will pay C$1 million in cash (£630,000) and 2 million company shares to discharge all payments due to Intermine, which will cancel the royalty agreement inked in May 1998.
At the Parys, there is estimated to be a total historical resource of more than 7 million tonnes with more than 9 per cent combined copper, lead and zinc.
In its full year statement, the firm said it had been another "successful year" highlighted by the establishment of associate Labrador Iron Mines (in which it holds 26 per cent) as a fully-fledged iron ore miner and the only independent mining company operating in the Labrador Trough.
In the year to March 31, the firm posted a net income of £19.1 million (2011: loss: £1.8 mln), chiefly as a result of the book gain on its holding in LIM, it said.
Looking ahead, chairman John F Kearney said: "The board believes that Anglesey Mining is now very well placed to generate significant shareholder value over the next few years from both Parys Mountain and Labrador Iron.
"The scoping study on the Parys Mountain project is scheduled for completion in the autumn and in the meantime exploration drilling is continuing.
"In Canada, LIM's iron ore production is targeted to grow to 5 million tonnes per year by 2015. We remain convinced that any improvement in the world economies and the return of investor confidence in the mining sector will be reflected in the share prices of both Labrador Iron and Anglesey Mining."
Shares in Anglesey rallied 11.5 percent to 12 pence on today’s news.
Proactive Investors also covered a note from Goldman Sachs, which said it still saw value in west African iron ore producers despite the current low price for the commodity.
Goldman rates *African Minerals (LON:AMI)* a 'buy' with a 12 month price target of 685 pence, London Mining is also a 'buy' with a target price of 335 pence (current share price: 144.5 pence), while Bellzone is a 'buy' with a 35 pence price target.
The iron ore spot price has been trending southwards recently to reach US$119 per tonne - the lowest in the year so far but Goldman analysts see upside potential to that price beginning later in the year.
Analyst Fawzi Hanano said steel demand was in a cyclically weak period with declining Chinese domestic prices putting pressure on steel input prices - mainly iron ore.
But the analyst doesn't expect that to last.
"We continue to believe the iron ore price will remain supported at current levels, and see upside in late 2012 and into 2013," he said.
"While we cannot rule out a further decline in the short term, we believe pricing at this level is not sustainable, as high cost Chinese capacity is likely to swing offline, tightening the market and increasing demand for imported ore, particularly while strong Chinese steel production persists."
The most recent Chinese data for March to June this year showed steel production has broken back above 60 mln tonnes per month, and the average run-rate for 2012 in the year to date implies production for the year of 710 mln tonnes.
As a result of near term iron ore forecasts and exchange rates, Goldman has lowered its earnings estimates for 2012 - 2014 and price targets for* African Minerals (LON:AMI)*, *London Mining (LON:LOND)*, *Bellzone Mining (LON:BZM)*, Northland Resources and Kumba Iron Ore.
Another in-depth article by Proactive Investors was dedicated to* Bullabulling Gold (LON:BGL, ASX:BAB)*, which is well advanced with the pre-feasibility study on its key project in western Australia with completion due by the end of the year.
The gold miner said it had set the mining parameters for Bullabulling and was now working on the key cost estimates.
Brett Lambert, the company’s managing director, said the last three months had been transformational with solid progress made towards determining capital and operating costs.
He added that the company is also working on new drilling programmes to expand the resource, with infill RC drilling underway and diamond drilling due to commence in the current quarter.
Bullabulling’s total resource totals approximately 3.4 million ounces, at a cut-off grade of 0.5 g including the resources at the satellite Gibraltar prospect.
The mine will be an open pit operation and the company said today it had produced the pit layouts and production profiles.
These will be the basis of the final round of pit optimisations, leading on to detailed open pit design and production scheduling.
Processing will consist of conventional single stage crushing followed by a SAG mill/ball mill combination as this was the most cost effective and had the lowest technical risk.
The current intention is to use cyanide leaching exclusively in a conventional carbon in leach (CIL) process, Lambert added. A tailings thickener will be incorporated in to the circuit.
The new drilling will follow on from a 3D programme that showed the gold mineralisation at Bullabulling is associated with the largest fold in the region at the top and bottom contacts of a regionally extensive ultramafic unit.
Satellite fields Gibraltar and Geko are also associated with similar folds, but on a smaller scale.
Meanwhile, we took a closer look at yesterday’s disappointing earnings report from social network* Facebook (NASDAQ:FB)*.
Shares in the social network fell US$2.50 or 8.5 per cent in deals yesterday, but tumbled a further US$2.87 or almost 11 per cent in after-hours trading, dragging the stock below US$24.
Mark Zuckerberg’s firm posted a 32 per cent increase in revenues to US$1.18 bln (£750 mln) in the three months to June 30, but growth was the slowest seen since the first quarter of 2011.
Facebook made a net loss of US$157 mln, or 8 cents a share, in the quarter owing to tax charges after going public.
Underlying profits excluding the fees rose 3.5 per cent to US$295 mln, or 12 cents per share, from US$285 mln in the second quarter last year in line with Wall Street estimates.
Capital expenditure tripled to US$413 mln last quarter and the company warned that operating expenses would be higher in the second half of 2012 than last year.
215 million more people logged into Facebook each month, bringing the monthly active users to 955 mln, up from 740 mln last year.
On a daily basis, 32 per cent more people clicked on the site, with 552 mln daily members.
There are concerns over the company’s falling advertising revenues due to increasing access via smartphones, which showed a 67 per cent rise from last year.
Advertising fees from companies are smaller on smartphones as the diminutive screens make it harder to sell space.
Chief executive Mark Zuckerberg, who first launched the website from his Harvard dorm, said that mobile is a “huge opportunity” for the company, which is investing “very heavily” in mobile apps.
However, investors did not warm to the lack of financial guidance from the internet giant, which offered no proof of a turnaround in fortunes as the business continues to slow down.
Zuckerberg, who watched US$2.7 bln disappear from his fortune yesterday, also denied reports that Facebook is planning to launch its own smartphone.
Links:  Full news story
|
|
| | Recent related news |
| |
guardian.co.uk
58 minutes ago | Independent investigation launched after Digital Media Initiative, which aimed to digitise archive,... |
Proactive Investors
59 minutes ago | Budget African airline Fastjet (LON:FJET) has issued 45mln new shares to New York-based fund... |
guardian.co.uk
3 hours ago | Film of Michael Olumide Adebolajo edited to take out some content of man suspected of killing soldier... |
guardian.co.uk
4 hours ago | Usain Bolt and Mo Farah, brand ambassadors for Virgin, expected to front advertising campaign for... |
PRWeb
4 hours ago | ForexMinute.com understands traders and offers the best tools for brokers; in the list it has now... |
| |
guardian.co.uk
2 days ago | When Google does great things for the world, I applaud. When it goes to extraordinary lengths to... |
| |
|
|
|
|
Facebook
E-mail
Twitter
Mixx
StumbleUpon
FriendFeed