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Northland Capital Partners View on the City - Botswana Diamonds; Sunrise Resources

Northland Capital Partners View on the City - Botswana Diamonds; Sunrise Resources

SECTOR: MINING

Botswana Diamonds (LON:BOD)

SECTOR – MINING

RATING – SPECULATIVE BUY*

MARKET CAP – £5.3m

CURRENT PRICE – 1.05p#

 

Year-end June

2016A

2017A

2018E

2019E†

 

Revenue (£m)

-

-

No forecasts provided

EBITDA (£m)

(0.3)

(0.3)

Adj. pre-tax Profit (£m)

(0.3)

(0.3)

Adj. EPS (p)

(0.11)

(0.09)

DPS (p)

-

-

Net Cash/(Debt) (£m)

0.3

(0.3)

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited Acts as Nomad and Broker to Botswana Diamonds and therefore this information should be viewed as a Marketing Communication.

 

Update on plans for H218 (note attached)

 

NORTHLAND VIEW

§  Under the Sunland Minerals Joint Venture, heavy mineral sampling on all 8 high-contrast geophysical anomalies returned kimberlite indicator minerals (KIMs) that are believed to have a local source. An examination of the KIMs is now underway to assess their diamond bearing potential.

§  Under the Vutomi Joint Venture, we are expecting the results from the analysis of kimberlite indicator minerals from samples taken from the Free State Kimberlites, to assess the potential for these kimberlites to be diamondiferous. The results from this programme are also expected in July-18.

§  Under the Maibwe Joint Venture, the liquidator of BCL Mine Group is preparing a prospectus for the potential sale of the diamond projects. The exact timeline for this process is unknown, but we would expect some developments during H218.

§  Other potential developments include the results of initial work on the recently acquired Mooikloof Project and further progress on the Zimbabwean joint venture with Vast Resources.

Botswana Diamonds has rapidly advanced its Thorney River Project over the past year. This work culminated in a Technical & Economic Study (TEE) highlighting a potential size of 1.2mt to 2mt at a grade between 46cpht and 74cpht, with average carat values between US$120/ct and US$220/ct. The TEE indicated positive economics could potentially be achieved using the top end of the grade and value ranges, assuming additional kimberlite volume of similar grade and value can be defined with further exploration. During H218, Botswana Diamonds is expected to deliver results from its earlier stage projects as it seeks to advance them up the value chain.

COMPANY DESCRIPTION

Botswana Diamonds is a diamond exploration company focused on the Kaapvaal Craton. The Company has projects in Botswana, South African and is moving into Zimbabwe.

 

 

BOTSWANA DIAMONDS (LON:BOD)

SECTOR – MINING

RATING – SPECULATIVE BUY*

MARKET CAP – £5.3m

CURRENT PRICE – 1.05p#

ANALYST – DR RYAN D. LONG

 

Year-end June

2016A

2017A

 

 

 

Revenue (£m)

-

-

No forecasts provided

EBITDA (£m)

(0.3)

(0.3)

Adj. pre-tax Profit (£m)

(0.3)

(0.3)

Adj. EPS (p)

(0.11)

(0.09)

DPS (p)

-

-

Net Cash/(Debt) (£m)

0.3

(0.3)

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and Broker to Botswana Diamonds and therefore this information should be viewed as a Marketing Communication.

 

From yesterday: Kalahari Desert Exploration Update

 

NORTHLAND VIEW

§  Botswana Diamonds has provided an update on its Sunland Minerals joint venture with Alrosa.

§  All eight geophysical anomalies returned good kimberlite indicator minerals (KIMs).

§  The grains include fresh chrome diopsides and olives, which imply a local source.

A positive update from the Sunland Minerals joint venture, where Botswana Diamonds is the operator. All eight of the high-contrast geophysical anomalies sampled in the Gope Region of the Kalahari Desert, returned kimberlitic indicator minerals (KIMs) The KIMs include: 41 garnets; 13 chromites; 139 ilmenites, 4 chrome diopsides and 70 olivines. Importantly the KIMs are thought to have a local source. The joint venture will now examine the mineral chemistry of the grains to determine the diamond bearing potential, if the results are positive we would expect the joint venture to commence an initial drill programme.

 

COMPANY DESCRIPTION

Botswana Diamonds is a diamond focused exploration company that has a joint venture with Alrosa in Botswana, an interest in the Maibwe discovery also in Botswana and an interest in 10 prospecting rights that contains 20 kimberlites, in South Africa.

 

 

 

SUNRISE RESOURCES (LON:SRES)

SECTOR – MINING

RATING – CORP*

MARKET CAP – £3.4m

CURRENT PRICE – 0.16p#

ANALYST – DR RYAN D. LONG

 

Year-end Sept

2016A

2017A

 

 

 

Revenue (£m)

-

-

No forecasts provided

EBITDA (£m)

(0.4)

(0.3)

Adj. pre-tax Profit (£m)

(0.4)

(0.3)

Adj. EPS (p)

(0.04)

(0.02)

DPS (p)

-

-

Net Cash/(Debt) (£m)

0.05

0.12

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited Acts as Nomad and Joint Broker to Sunrise Resources and therefore this information should be viewed as a Marketing Communication.

 

From Yesterday: VR Resources Update

 

NORTHLAND VIEW

§  VR Resources, a company in which Sunrise Resources holds an interest, has provided an update on the exploration programme completed at the Junction Gold Project.

§  At the Denio Summit Target, within Sunrises area of interest, a 1.5km long trend of copper-silver-gold bearing quartz veins and pegmatites has been defined. 86 soil samples were enriched in gold covering a 1km trend. A potassium depletion anomaly, indicative of alteration, has been defined over 800m and is coincident with magnetic, radiometric and soil anomalies.

The continued advancement of the Junction Gold Project is an interesting development for Sunrise Resources, particularly if VR Resources does complete its planned drill programme at the project, as this would lead to the issue of additional shares to Sunrise Resources.

 

COMPANY DESCRIPTION

Sunrise Resources is an exploration company focused on its 100%-owned CS Pozzolan-Perlite Project, located in Nevada

 

 

1. Northland Capital Partners Limited (“Northland”) acts as Nominated Advisor and/or Broker to the company.

2. Northland) and/or its affiliates companies do beneficially own 1% or more of any class of the issuer’s equity securities, as of the end of the month immediately preceding the date of issuance of the research report or the end of the second most recent month if the issue date is less than 10 calendar days after the end of the most recent month. 

3. The authoring analyst or any associate of the authoring analyst does maintain a long or short position in any of the issuer’s securities directly or through derivatives, including options or futures positions.

4. Northland, its affiliated companies, partners, officers, directors or any authoring analyst of Northland has provided services to the issuer for remuneration during the preceding 12 months other than investment advisory or trading services.

5. Northland or any of its affiliated companies has performed investment banking services for the issuer during the 12 months preceding the date of issuance of the report.  

6. A partner, director, officer, employee or agent of Northland or any of its affiliated companies is an officer, director, employee or advisor of the issuer.  Disclosures are applicable for all companies

7. The authoring analyst, or any associate of the authoring analyst, has viewed the material operations of the issuer. 

8. The authoring analyst, or any associate of the authoring analyst, received reimbursement for travel expenses.

9. Northland makes a market in the securities of this company.

 

 

DISCLAIMER

This document is provided solely to enable clients to make their own investment decisions. It may therefore not be suitable for all recipients and does not constitute a personal recommendation to invest. It does not constitute an offer or solicitation to buy or sell securities or instruments of any kind. If you have any doubts about the suitability of this service, you should seek advice from your investment adviser. This document is produced in accordance with UK laws and regulations. It is not intended for any person whose nationality or residential circumstances may render its receipt unlawful.

The past is not necessarily a guide to future performance. The value of shares and the income arising from them can fall as well as rise and investors may get back less than they originally invested. The information contained in this document has been obtained from sources which Northland Capital Partners Limited believes to be re¬li¬able. The Com¬pany does not warrant that such information is accurate or complete. All estimates and prospective figures quoted in this report are forecasts and not guaranteed. Opinions included in this report reflect the Company’s judgement at the date of publication and are subject to change without notice. If the investment(s) mentioned in this report are denominated in a currency different from the currency of the country in which the recipient is a resident, the recipient should be aware that fluctuations in exchange rates may have an adverse effect on the value of the investment(s). The listing requirements for securities listed on AIM or PLUS markets are less demanding, also trading in them may be less liquid than main markets.

Northland Capital Partners Limited and/or its officers, as¬sociated entities or clients may have a position, or other material interest, in any securities men¬tioned in this report. Northland Capital Partners Limited does not provide recommendations on securities of firms with which it has a corporate relationship. More information about our management of Conflicts of Interest, Investment Research Methodology & Definition of Recommendations can be found at www.northlandcp.co.uk 

Northland Capital Partners Limited is authorised and regulated by the Financial Conduct Authority and a Member of the London Stock Exchange.

Published by/copyright: Northland Capital Partners Limited, 2013. All rights reserved

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