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VSA Capital Market Movers - Asiamet Resources, Glencore International, Randgold Resources

Published: 09:00 04 May 2017 BST

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Asiamet Resources (LON:ARS)

Latest drilling results in the infill program for the Beruang Kanan project of Asiamet (ARS) have encountered unexpected thicknesses of high grade copper deeper in the BK044 area than currently anticipated in the modelling of the open pit.  Representative values include:

• 33m at 1.11%Cu from 110.5m in hole BKM32400-10

• 18m at 1.6%Cu form 13m in hole BKM32400-07

• 20m at 0.95%Cu from 86m in hole BKM32650-05

Multiple intervals of high grade copper have been encountered in this area with many zones grading well over 2% Cu. This deeper oxidized mineralisation is well beyond the PEA study pit limits suggesting the upcoming feasibility study will reflect significant increase in minable tonnes and a deeper pit model in this area.

Glencore (LON:GLEN)

Glencore (GLEN) slightly raised full year EBIT guidance range to US$2.3bn to US$2.6bn on the back of improved commodity market prices, even as Q1 production results across its commodities were mixed.

Attributable oil output was way down by 43% to 1.4mbbls due to ongoing depletion of reserves. Nickel production was down by 10% to 24,600t and copper also sank by 3% to 324,100t on a variety of local production issues at its mines. On the bright side, ferrochrome was up 10% to 439,000t and zinc 9% to 279,100t.  In these times it is a benefit to be diversified like GLEN.

Randgold Resources (LON:RRS)

A solid performance from Randgold Resources (RRS) though it was not quite as good QoQ on costs and gold production. Gold sales were down 10% to 409,603ozs vs last quarter at 453,051ozs. The gold price received was US$30 higher but did not offset the change of the cash costs which rose to US$619/oz from US$549/oz  The additional hydropower station for the Kibali mine is just about complete.

YoY comparables however were positive across all metrics with gold output, cash costs, and gold prices all improved. The cash position rose to US$600m and a dividend increase of over 50% was declared to US$1/share during the quarter.

Today’s results represent solid numbers which appear to be sustainable in the foreseeable term. The building cash pile offers great opportunity to capitalise on exploration discovery or M&A opportunity going forward.

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