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Beaufort Securities Breakfast Alert: Hummingbird Resources, Jubilee Platinum and Savannah Resources

Beaufort Securities Breakfast Alert: Hummingbird Resources, Jubilee Platinum and Savannah Resources

Markets
Europe
The FTSE-100 finished Friday's session 0.08% lower at 7,380.68, whilst the FTSE AIM All-Share index was up 0.18% at 1,023.43. In continental Europe, the CAC-40 finished 0.32% lower at 5,319.17 whilst the DAX was down 0.41% at 12,993.73.
Wall Street
In New York on Friday, the Dow Jones closed 0.43% lower at 23,358.24, the S&P 500 fell 0.26% to end at 2,578.85 and the Nasdaq finished 0.15% weaker at 6,782.79.
Asia
In Asian markets this morning, the Nikkei 225 was recently down 0.6% at 22,261.76 but the Hang Seng was up by 0.11% higher at 29,235.26.
Oil
In early trade today, WTI crude was 0.16% higher at $56.64 per barrel, while Brent was 0.14% lower at $62.63.
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Headlines
British Gas scraps standard tariff for new customers
Energy giant British Gas will scrap its standard variable tariff (SVT) price category by April for new customers. It comes after draft legislation designed to lower the cost of energy bills was published by the government. The Draft Domestic Gas and Electricity (Tariffs Cap) Bill would give energy regulator Ofgem the power to cap SVTs. Rival energy firm E.On has already said SVTs will no longer be the default option for customers coming to the end of their existing tariffs. SVTs are usually among the most expensively priced tariffs. Announcing the change, Ian Conn, chief executive of British Gas parent firm Centrica, said: "We have long advocated that the end of the Standard Variable Tariff is the best way to encourage customers to shop around for the best energy deal." Although the development only applies to new customers, Mr Conn said the company was keen to move all its customers off the SVT. "We will contact all of our customers at least twice a year to encourage them to move away from the SVT," he said. British Gas contacted all its SVT customers in the first half of 2017, and it says that 10% switched away from the tariff.
Source: BBC News

Company news
Hummingbird Resources (LON:HUM, 38.75p) – Speculative Buy
Hummingbird Resources announced today that wet commissioning has commenced at its Yanfolila gold project in Mali ahead of the first gold pour by end of 2017. Pre-commissioning of the installed ball mill, including all electrical and mechanical testing, has been completed as well as commissioning of the water supply for the processing plant. Wet commissioning of the CIL (Carbon-in-leach) circuit has now commenced with ore to be introduced upon completion of the wet commissioning.

Our view: We continue to be encouraged and impressed with the progress being made at Yanfolila and eagerly anticipate the first gold pour by year end. With pre-commissioning of the ball mill now complete, we look forward to the wet commissioning of the plant followed by introduction of the first ore. In the meantime, we maintain a Speculative Buy rating on the stock.

Beaufort Securities acts as a corporate broker to Hummingbird Resources plc

Jubilee Platinum (LON:JLP, 3.88p) - Speculative Buy

Jubilee has published an excellent Hernic operational update for October. It processed 45.6kt of material and produced 1427 ounces (up 22% on September) at a cost of $406/oz. Project earnings of £0.37m are attributable to Jubilee for the month.

Our view: These numbers speak for themselves, especially considering Hernic is not yet fully optimised. Optimisation will continue over the next few months. That said a PGM production cost of only $406/oz provides a very healthy margin and should result in strong Jubilee level cashflow in 2018.

Beaufort Securities acts as corporate broker to Jubilee Platinum PLC

Savannah Resources (LON:SAV, 5.25p) – Speculative Buy
Savannah today announced that construction of the pilot plant for its bulk metallurgical test work programme at the Mutamba Mineral Sands project in Mozambique is now complete. Commissioning is currently underway on the 20 tonne per hour pilot plant which is expected to be completed by the end of 2017. The pilot plant will produce bulk samples of concentrate for metallurgical and product testwork. Savannah holds a 20% interest in the project and has the right, subject to key milestones being met, to earn up to a 51% as stated in the Consortium Agreement signed with Rio Tinto on 11 October 2016. The Consortium is targeting first production in 2020 with an estimated annual production of 456,000t of ilmenite and 118,000t of non-magnetic concentrate over a 30-year mine life. Total resource for the Mutamba project stands at 4.4Bt grading 3.9% THM (total heavy minerals).

Our view: We are encouraged with the pace of development at Mutamba since the Scoping Study released earlier this year. The pilot plant will produce bulk samples necessary for metallurgical test work and final products for test marking. The TiO2 pigment industry continues to gain strength on the back of strong demand for feedstock which should help support current prices moving forward. On aggregate, the Mutamba resource compares favourably with other major African based mineral sand deposits. We look forward to further updates as the project moves through the commissioning phase. In the meantime, we maintain a Speculative Buy rating on the stock.

Beaufort Securities acts as a corporate broker to Savannah Resources Plc



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