UK 100
Latest price: 6,681 (-0.64% Descending)
52-week high: 6,878
52-week low: 6,196
UK 100 - 1 year chart
UK 100 - 1 week chart
Crude Oil
Latest price: 75 (0.00%)
52-week high: 115
52-week low: 75
Gold
Latest price: 1,195 (0.00%)
52-week high: 1,385
52-week low: 1,142
Advertisement
Fox-Davies Capital

Fox-Davies Capital specialises in assisting international resource companies to gain access to the UK, European and North American capital markets and has a substantial background in emerging markets particularly in Africa, Asia, Russia and the CIS.

Pdf

Afferro Mining, African Consolidated Resources, Bullabulling Gold, Randgold Resources and others feature in Fox-Davies Newsflash

January 21 2013, 8:23am

 

 Daily Mining Monitor

Afferro Mining (LON:AFF) has announced the resignation of Ousmane Kane from the Board of Directors with immediate effect.

In this news:

Mr Kane aims to concentrate on his responsibilities as Vice Chairman of African Iron Ore Group Ltd and its associated companies.

FD Comment: Mr Kane was only appointed last June. As the former Minister of Finance and Governor of the Central Bank of Mauritania, Director General of Mauritania's state-owned iron ore company Société Nationale Industrielle et Minière and VP of the African Development Bank. As the only African, his resignation may leave the board unbalanced.

Atlantic Coal PLC (LON:ATC) announced that it has exercised its lease option over the fully permitted 410 acre Pott & Bannon anthracite mining property in New Castle Township, Schuylkill County, Pennsylvania. Further details of the lease option agreement are contained in the Company's announcement on 3 January 2012. The consideration is US$6.0M in cash, coal and shares payable to Reading Anthracite Company ("RAC") plus the grant of US$3.0M worth of warrants over Atlantic Coal new ordinary shares at 0.75 pence per share. As announced on 03/01/12, at that time the Directors believed that the Property could contain up to 13.6M tons run-of-mine coal, equating to approximately 4.1M tons of washed, saleable anthracite based on information provided to the Company in a report, commissioned by RAC in January 1999 and prepared by John T. Boyd & Company. The average strip ratio was estimated to be 3.9 ROM. The site is located 25 miles from the Company's Stockton site in the productive Pennsylvanian Anthracitic Belt with established infrastructure and industrial and domestic demand. This agreement is part of the Company's strategy of increasing its current reserves and production profile, particularly in the Pennsylvania Anthracitic Belt.

African Consolidated Resources (LON:AFCR) announced that it has agreed a subscription of 54,330,200 new ordinary shares of 1p each in the Company at a price of 3.50 pence per New Ordinary Share to raise gross proceeds of £1.90M. The Subscription is not underwritten. In addition and further to the announcements of 24 October 2012 and 18 January 2013, the Company announces the issue of 1,379,200 new ordinary shares of 1p each in the Company at 2 pence each pursuant to employment services rendered to the Company. The Directors estimate that the net proceeds of the Subscription will be sufficient to fund the Company's near term liabilities and progress towards the advancement of its key projects, particularly the Pickstone-Peerless Gold Project. It is anticipated that further funding will be required in Q2 2013 in order for the Company to both continue operating as a going concern and develop its Pickstone-Peerless Gold Project together with its portfolio of high impact assets. The Company continues to explore all sources of funding.

Bullabulling Gold (LON:BGL) has released its December Quarter activity report.

In this news:

PFS to date indicates initial 10 years mine life, producing 650koz over first 3 years at A$884/oz with LOM cash costs of A$1,104/oz

The key PFS activities remaining are the review and finalisation of the mining schedule, risk assessment, financial modelling, project development schedule and finalisation of the scope for the feasibility study

First full draft of the PFS report expected by the end of January, 2013

Work on the full feasibility study will commence from the beginning of February, 2013

Cash at end of December was A$4.1m.

FD Comment: Bullabulling is progressing well and we believe that the current 3.5Moz resource could be substantially bigger. Infrastructure is readily available, however, this is a low grade, bulk operation and keeping tight control on costs will be key to the projects viability. In the short term based on current expenditure the Company only has enough cash for 1H’13 we expect the Company will need to raise cash during the current quarter.

Kula Gold Limited (ASX:KGD) announced the lodgement, with the PNG Department of Environment and Conservation, of the Environmental Impact Statement (EIS) for the Company’s Woodlark Island Gold Project. Lodgement of the EIS completes the submissions to the PNG Government in support of the Mining Lease Application and development process. This follows the lodgement late last year of the Company’s Mining Lease Application in conjunction with the Feasibility Study and Development Proposal. Kula Gold has worked closely with the people of Woodlark Island since the commencement of the Project in 2007 and has implemented an extensive stakeholder engagement programme in support of the EIS approval process.

Nyota Minerals (LON:NYO) has released a drilling update on the Feeder Zone at Tula Kapi.

In this news:

New high grade intersections in the Feeder Zone include: 15.04g/t Au over 9.45m, 10.55g/t Au over 13.96m, 5.34g/t Au over 12.25m and 5.24g/t Au over 26m

Initial in-house Inferred Resource estimate of 1.1 million tonnes at an average grade of 5.4g/t containing 188,000 ounces of gold

Technical and financial studies by independent consultants are expected to commence shortly – to consider underground mine of 159kts – 350ktpa, which at 5g/t would increase gold production by 15koz-45koz pa

The Company had A$3m cash at the end of December and the Company faces a shortfall in working capital

Significant cost cutting measures are being introduced immediately

The Board is confident of securing interim financing.

FD Comment: Whilst the latest drill results are positive and should lift production at Tula Kapi, the immediate focus is on the cash crunch expected this quarter. Whilst cost savings will help, we expect the Company will have to raise capital and based on the Boards confidence we expect this to be announced imminently.

Randgold Resources Ltd (LON:RRS) announced that production at its Tongon mine in Côte d’Ivoire is returning to normal after a fire in the mill section of its plant three weeks ago. Both mill circuits are expected to be fully operational within two weeks and, despite a series of setbacks, the mine produced 210,000 ounces of gold in 2012.

 

 

Research Disclaimer

This document should not be relied upon as being an impartial or objective assessment of the subject matter and is not deemed to be “objective research” for the purposes of the FSA rules. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Fox-Davies Capital Limited and the individual employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document and you should therefore not rely on this document as being an independent, impartial or objective view of the value or prospects of the companies and/or investments referred to herein. 

This document has been issued by Fox-Davies Capital Limited for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity. Fox-Davies Capital Limited and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments. The information contained herein is based on materials and sources that we believe to be reliable, however, Fox-Davies Capital Limited makes no representation or warranty, either express or implied, in relation to the accuracy, completeness or reliability of the information contained herein. Opinions expressed are our current opinions as of the date appearing on this material only. Any opinions expressed are subject to change without notice and Fox-Davies Capital Limited is under no obligation to update the information contained herein. None of Fox-Davies Capital Limited, its affiliates or employees shall have any liability whatsoever for any indirect or consequential loss or damage arising from any use of this document.

This report has been approved in the UK by Fox-Davies Capital Limited solely for the purposes of section 21 of the Financial Services and Markets Act 2000.  In the UK, this report is directed at and is for distribution only to persons who (i) fall within Article 19(1) (persons who have professional experience in matters relating to investments) or Article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (as amended) or (ii) are professional clients or eligible counterparties of Fox-Davies Capital Limited (all such persons together being referred to as “relevant persons”).  This report must not be acted on or relied up on by persons in the UK who are not relevant persons.

Fox-Davies Capital is not a US registered broker-dealer.  Transactions undertaken in the US in any security mentioned herein must be effected through a US-registered broker-dealer, in conformity with SEC Rule 15a-6.

Neither this report nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this report comes should inform themselves about, and observe any such restrictions.  Distribution of this report in any such other jurisdictions may constitute a violation of UK or US securities law, or the law of any such other jurisdictions.

Investments in general involve some degree of risk, including the risk of capital loss. The services, securities and investments discussed in this document may not be available to nor suitab le for all investors. Investors should make their own investment decisions based upon their own financial objectives and financial resources and, if in any doubt, should seek advice from an investment advisor. Past performance is not necessarily a guide to future performance and an investor may not get back the amount originally invested. Where investment is made in currencies other than the investor’s base currency, movements in exchange rates will have an effect on the value, either favourable or unfavourable. Levels and bases for taxation may change. When we comment on AIM or OFEX shares you should be aware that because the rules for those markets are less demanding that the Official List of London Stock Exchange plc the risks are higher. Furthermore, the marketability of these shares is often restricted.

Fox-Davies Capital Limited and/or its associated companies may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Fox-Davies Limited that is not reflected in this material and Fox-Davies Capital Limited may have acted upon or used the information prior to or immediately following its publication. In addition, Fox-Davies Capital Limited, the directors and employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests. Neither the whole nor any part of this material may be duplicated in any form or by any means. Neither should any of this material be redistributed or disclosed to anyone without the prior consent of Fox-Davies Capital Limited. Fox-Davies Capital Limited is authorised and regulated by the Financial Services Authority and is a member of the London Stock Exchange