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Proactive One2One Forums line-up confirmed for rest of 2008
It continues to be a very challenging market for retail and institutional investors alike. The days of hedge funds earning spectacular returns year after year appear to be behind us, with dozens of funds already wound up, and redemptions continuing to run at their highest rates in years. The small cap sectors of all the major global stock exchanges have been hit particularly hard by liquidating funds, as these same funds often hold substantial stakes in relatively illiquid stocks; and when they suddenly need to exit, the selling pressure can be immense, pushing a company’s valuation below cash levels in many circumstances. The silver lining for investors with spare firepower in their portfolio is that there are some pretty good bargains to be had.
We enter the final two months of 2008 with a full schedule. Our first forum is only two days away (November 12th), and we welcome back Braemore Resources (AIM: BRR) and Weatherly International (AIM: WTI) who will be presenting alongside TSX Venture listed Western Potash. Both Braemore and Weatherly have smelting operations in Southern Africa; Weatherly is mining and smelting copper in Namibia while Braemore is smelting PGMs in South Africa. Both have plenty to update us on. Western Potash, as the name suggests, is exploring for potash in Western Canada, and has built up a sizeable position adjacent to two large potash deposits on the Saskatchewan / Manitoba border.
To attend the Weatherly International, Braemore Resources and Western Potash event CLICK HERE
Two weeks later, on November 25th, we welcome Northern Petroleum (AIM: NOP), Enegi Oil (AIM: ENEG) and Mariana Resources (AIM: MARL).
Northern Petroleum finds itself in a comparatively strong position compared to many of its peers. It has around £30 million in cash and financing in place for a gas field development program in 2009 in the Netherlands, and also has one of the most impressive license positions in Italy, where it recently farmed out three prospects. Enegi Oil also presents from a position of strength with a horizontal sidetrack underway at the Garden Hill South project in Eastern Canada which is projected to produce around 2,500 barrels of oil per day before year end, and propel the company to self financing status. Meanwhile, Mariana Resources has returned bonanza silver-gold intersects from drilling at one of its projects in Santa Cruz Province, Patagonia, Argentina. Mariana’s board of directors is packed full of exploration geologist who know how to find ore bodies, and bring decades of experience in South America.
To attend the Northern Petroleum, Enegi Oil and Mariana Resources Forum CLICK HERE.
Our final event of the year will be held on December 4th, and we welcome back Elixir Petroleum, who since their last presentation have completed a merger with ASX listed Gawler Resources. The new combined company can boast a strong balance sheet, revenues from operations in the Gulf of Mexico combined with its high impact exploration acreage in the North Sea. Alongside Elixir Petroleum will be Lydian International, an exploration company which has been reporting excellent results from its Armulsar Gold Project in Armenia. Lydian can also boast Newmont Mining and an arm of the World Bank as shareholders. Minera IRL’s strong point is impressive cash flow from its operating gold mine in Peru. With north of US$10 million in the coffers, another gold project in the pipeline, and continuing cash flow from operations, Minera IRL finds itself in an enviable position among mining juniors.
To attend the Elixir Petroleum, Lydian International and Minera IRL Forum CLICK HERE
Companies Presenting November 12th, 25th and December 4th.
Braemore Resources plc (AIM: BRR; JSE:BRE) offers investors an attractive opportunity to enter into the platinum group metals (PGMs) and nickel business, initially through the mid-stream processing of these metals and, in time, through mine-to-market production opportunities. Braemore Resources is principally involved in evaluating, establishing and operating independent facilities for the roasting, smelting and refining of concentrates containing PGM and associated base metals and for the reclamation and processing of sulphide nickel tailings.
Diversified both geographically and in terms of product, the company is located in two key mining regions – Braemore Nickel in Western Australia and Braemore Platinum in South Africa. Braemore’s access to proprietary technology, and in particular the Mintek ConRoast technology, which has successfully operated at demonstration level, makes the company well-positioned to become a significant player in the burgeoning South African PGM sector, offering a more cost-effective, environmentally friendly and accessible smelting option to a host of junior mining companies. Unlike conventional smelters, ConRoast is unaffected by the high chrome-content ores, which are increasingly being mined. Braemore’s management team, in South Africa and Australia, brings with them impressive credentials in their respective sectors, combined with a board that is knowledgeable in metals processing, financial and commodities market.
Weatherly International (AIM: WTI) is seeking to become a major southern African base metals producer, building on its strong growth prospects, niche custom-smelting business and solid African management expertise. The company is currently operating three copper mines and a smelter in Namibia. A further two mines are in development, along with an expansion of the Ausmelt furnace at the smelter. Production is unhedged and the company is targeting a total of 50,000 tonnes of copper on an annualised basis by 2008 (20,000 tonnes from its mines, 30,000 tonnes from imported concentrates). Weatherly will continue to seek and evaluate other strategic acquisition opportunities in Africa that have the potential to generate additional profitable growth for shareholders.
Western Potash Corp. (TSX-V: WPX) is a junior mining company engaged in the acquisition, evaluation and exploration of potash mineral properties in Western Canada. The Company's objectives are to define and develop a world-class potash deposit while providing its shareholders with a unique opportunity to participate in the blue-chip dominated potash mining industry. The Company 's key properties consist of 3 potash exploration permits in Southwest Manitoba located along the Saskatchewan border. The property covers 1000 km² and adjoins two potash deposits that are estimated to host over 1 billion tonnes of potash. In addition, the company was also granted 50,000 hectares of Saskatchewan exploration permits and applied for an additional 150,000 hectares in Southern Manitoba.
Enegi Oil (AIM: ENEG) Like many junior oil companies, Enegi is concentrating its efforts on assets that have slipped beneath the radar of the majors. In particular, Enegi is focused on Eastern Canada, where its directors have considerable knowledge. The management team has a hefty stake in the business too, which is always good to see, with combined holding of 35%.
Enegi Oil has stakes in two licences on the west coast of Newfoundland around the Port au Port peninsula. The first licence contains one discovery, Garden Hill South, and two prospects, Garden Hill Central and Garden Hill North. Enegi is currently drilling a horizontal sidetrack into Garden Hill South, with is expected to generate first production for the company before year end. The second licence, Exploration Licence 1070, is much larger covering 1,030 sq km and contains two prospects.
Mariana Resources (AIM:MARL) One needs to look no further than the board of directors to understand what Mariana Resources’ game plan is: Mineral hunting. The company is packed full of highly experienced exploration geologists who can boast to have found several world class deposits between them over their career in the natural resources sector. Mariana Resources’ own focus is on base and precious metals exploration, and the company has leveraged its extensive connections in Latin America to pick up some excellent exploration acreage, including licences in Santa Cruz Province, Argentina, which is particularly well known for its gold-silver potential. Bonanza grade silver intersects from one of the company's projects have already been reported.
Northern Petroleum (AIM:NOP) has interests in an extensive range of oil and gas projects, but the primary focus of the company is the Netherlands where it has already secured finance for a six well development program in 2009 that will allow the company to take a significant step towards becoming a mid-tier producer. Northern Petroleum is also in the enviable position of a very strong balance sheet, further boosted recently by the sale of its gas storage interests to Star Energy for £10 million. Northern Petroleum also has an extensive footprint in Italy, and recently announced the farm-out of three of its licences in Italy’s prolific Po Valley gas basin to Indofin Group.
Lydian International (TSX:LYD) is a mineral hunter focused on Eastern Europe in the Western Balkans, and the company has already delivered its first significant result in the shape of the Armulsar Gold Project in Armenia. Drill results from this year’s campaign have highlighted the potential for this project to become a multi-million ounce deposit. The company’s other key asset is the Drazhnje Zinc-Lead-Silver project in Kosovo. Perhaps most encouraging of all, the group’s two largest shareholders are Newmont Mining and an arm of the World Bank, the International Finance Corporation.
Minera IRL (AIM:MIRL) strongest hand is its ultra low cost Corihuarmi Gold Mine in Peru, which began throwing off cash earlier this year and is anticipated to produce 50,000 ounces this year. With over $10 million in the kitty and a small gold mine, the company is now setting its sights on leveraging its cash flow to advance the Ollachea Gold Project, also in Peru.
Elixir Petroleum (AIM:ELP) can also boast cash flow and a strong balance sheet from its interests in two gas projects in the Gulf of Mexico. The company’s cash flow from the Gulf has allowed it to continue with farm-out negotiations at its high risk, high reward North Sea oil licences. Elixir also recently snapped up a 15% stake in an offshore block in Sierra Leone, which is fast becoming a new frontier for exploration companies.
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