Thursday's AIM news: Commodities
19th April 2012 11:26
by Darshini Shah from interactive investor
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Shares in Noricum Gold jumped 13%, while those in Europa Oil & Gas slid 10%, as they updated investors on Thursday. Read on to see what they, and 13 other AIM-listed companies, had to tell their investors.
African Consolidated Resources
has completed a definitive feasibility study (DFS) on its sulphide tailings dump at Pickstone in Zimbabwe.
The company will shortly be seeking project funding to finance the remaining capital expenditure for the plant. After confirmation of funding, plant construction is scheduled to take six months. Thereafter production is planned to be completed in a further 15 months, during which period it is hoped that the phase 2 hard-rock mining operation will commence.
The Pickstone Sulphide Dump has a measured gold resource of 28,300 ounces.
Berkeley Mineral Resources
has extended the option period to acquire copper tailings assets in Chingola, Zambia, following the lifting of the state moratorium on the transfer of already-issued licences to 9 July 2012.
The stockpiles of copper tailings are located at three different areas within a seven-kilometre radius of each other.
Chingold was formally owned by Zambia Consolidated Copper Mines (ZCCM). The historic ZCCM mine closure records suggest that there are approximately 98.9 million tonnes (Mt) of tailings containing an estimated 1.445 Mt of copper metal.
"If these non-code compliant estimates are correct it would indicate an average copper grade of 1.45%, far above the global average mined copper grade, making this a very exciting project for Berkeley Mineral Resources," stated broker FoxDavies.
Central Asia Metals
announced its full-year results for the year ended 31 December 2011, almost doubling its loss from $5.8 million (£3.6 million) in 2010 to $11.2 million.
The company confirmed that construction of the Solvent Extraction - Electro Winning (SX-EW) plant at the Kounrad copper project was now materially complete, with the first cathode copper production now imminent.
The company's cash balance stood at $16 million at the end of last year, with no outstanding debt.
Chariot Oil & Gas
announced that its annual general meeting will be held on 21 May at Ground Floor, Regency Court, Glategny Esplanade, St Peter Port, Guernsey GY1 1WW.
The company's annual report and accounts for the 10 months to 31 December 2011 was today being posted to shareholders.
Cluff Gold
has received an environmental permit for its Baomahun Gold Project in Sierra Leone.
The receipt of this permit will enable the company to complete the environmental impact assessment for Baomahun, one of the last outstanding parts of the feasibility study which is due for completion in the first half of 2012.
Europa Oil & Gas
posted a net loss of approximately £5.5 million for the six months to 31 January, compared to the loss of about £0.5 million made in the corresponding period last year.
The increase in the loss came despite the company increasing revenues by 61% to £2.4 million, with production jumping 23% to 187 barrels of oil per day (bopd).
Operationally, the company has identified a new shallow gas play in the Béarn des Gaves permit in France and acquired two Irish Atlantic margin licences, along with seismic over the Wressle and Broughton prospects. However, it has elected to withdraw from the Brodina licence in Romania.
While cash generated from operations in the first half of 2012 was higher than full-year 2011, cash as at 31 January stood at only £293,000, raising the question of whether the company will need a capital raising.
Europa also took the opportunity to introduce Hugh Mackay as chief executive. Mackay joined the company during the period, revealing that he had been granted an options package with exercise prices "set considerably higher than the current market price, thereby aligning his interests with those of shareholders".
"News that the new chief executive will be remunerated on growth of the company should be welcome news for investors," commented FoxDavies.
However, it added: "While the net income may look a little sickly, there is sufficient cash to keep the lights burning. Consequently, to invest in growth, the company will either seek strategic partners, or look to the markets to provide that funding for growth. Either way, we believe that there is going to be pressure of the share price."
Forte Energy
has released the initial results from its reverse circulation drilling programme completed on 1 February 2012 at the Firawa project in Guinea.
The drilling programme consisted of 63 holes, 38 of which were assayed, of which 16 were included in this release, with the rest expected in May. Assay results from nine holes confirmed the continuity of the mineralisation in the central area, which had not been accessible previously.
The company expects to update investors at the end of the second quarter following receipt of the final assay results. However, FoxDavies warned that the delays in receiving assay results that plagued the company in previous years appear to be continuing.
Greatland Gold
The Australian government has approved planned three-phase reverse circulation drilling programme at its Ernest Giles gold project.
Drilling has now commenced testing a number of gold targets.
Ithaca Energy/Lochard Energy Group
has confirmed the arrival of the BW Athena floating production, storage and offloading (FPSO) vessel on location at the Athena field.
The FPSO has been connected to the mooring buoy. "Hook-up and infield commissioning activities are ongoing and a further announcement will be made upon delivery of first oil from the field," the company said.
has a net 10% interest in this field through its 100% ownership of Zeus Petroleum.
Noricum Gold
has secured an additional 15 square kilometers of licences at its Schonberg precious metals project, increasing the total project area to 37 square kilometres.
Exploration is ongoing on the project with results from further mapping and sampling, and preliminary electromagnetic/magnetic surveys are expected shortly.
Providence Resources
Initial work on new acreage in the Slyne Basin has demonstrated "exciting" gas potential.
Volumetric analysis based on available Kylemore prospect maps has indicated potential gas in place of up to about 228 billion standard cubic feet (bscf).
"Today's announcement has highlighted the basin's gas prospectivity, and with further work imminent in order to better quantify any remaining resource potential in the area, investors can look forward to further news as management look to unlock value within the Slyne Basin," said FoxDavies, adding that the opportunity for growth in the basin remained "significant".
The news should also bode well for , as it expanded its acreage in Slyne Basin in 2010, FoxDavies reminded investors.
Sterling Energy
has issued its interim management statement for the period beginning 1 January 2012.
Production, net to sterling from the Chinguetti field, averaged 401 bopd for the first quarter 2012. However, this was lower than the 629 bopd achieved in the first quarter of 2011.
Adjusted EBITDA and post-tax profits in the first quarter came in at $4.9 million and $3.1 million respectively. Cash as at 31 March, including partner funds of $0.7 million, stood at $118 million.
However, the company confirmed it was still awaiting resolution of the external constraints that continued to delay the drilling of exploration wells on the attractive deep water exploration acreage in Cameroon and Madagascar.
"Today's statement marks what we believe to be the end of a transition period for the company, with the arrival of the final key members of its technical team. With $118 million in the bank there is plenty of flexibility for the company to expand its portfolio," stated FoxDavies.
TomCo Energy
disclosed that its $5 million investment in Red Leaf Resources was part of a $100 million raising by Red Leaf that created a joint venture with Total (TTA).
The joint venture is for the development of the Red Leaf Oil Shale assets in Utah using Red Leaf's proprietary "EcoShale" processing technology to manufacture oil from near-surface shale rock.
TomCo's investment will be used for a 20% cost share in the joint venture and for other corporate purposes.
"This is a highly significant development, not only for us but also potentially for energy markets in general. Commercial oil shale mining could unlock one of the world's great oil resources," said interim chief executive Paul Rankine.
Weatherly International
on Thursday announced its quarterly update for the third quarter of its 2011/12 fiscal year.
Third-quarter production came in at 5,148 tonnes of copper concentrate, a 10% decline quarter on quarter. Contained copper production stood at 1,214 tonnes, down 14% on the previous quarter.
Cash costs for the quarter were $6,526 per tonne copper, reflecting both the low level of production for the quarter and a number of 'one-off' costs associated with the contractual changes at Otjihase.
As at 31 March 2012, the company held cash of $6.7 million equivalent.