Author stories http://www.proactiveinvestors.co.uk Proactiveinvestors Author stories RSS feed en Tue, 20 Feb 2018 21:33:06 +0000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) In the news: Panthera Resources http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29396/in-the-news-panthera-resources-29396.html FROM THE BROKING DESK

A reminder that we’re marketing Geoff Stanley of Panthera Resources* (PAT LN) in the UK this week. Space is now obviously limited, but if you missed our previous announcement let us know and we’ll try and squeeze you in. RFC Ambrian listed Panthera on AIM just before Christmas last year. It owns rights to a 70% interest in the Bhukia Gold Project in Rajasthan, India, where it has defined a JORC resource of 1.74Moz of gold at a grade of 1.4 g/t.

While the company is underpinned by a portfolio of prospective West African gold exploration licences, it’s Bhukia that provides the most potential. The Geological Survey of India (GSI) has explored the project area, estimating a resource of 6.7Moz at a grade of 2.0 g/t; although not JORC-compliant, this represents a well-defined exploration target. Mineralisation remains open in all directions, suggesting the ultimate size of the project could be even greater. Progress on the granting of the Prospecting Licence (PL) has picked up over the past year and, although the timing is not final yet, the process seems on track. Panthera offers upside to exploration results from its West African portfolio and the grant of the PL and the resource drill-out at Bhukia.

 

RFC Ambrian recently initiated coverage with a Speculative Buy: Panthera Resources — Chasing an Indian Elephant, 15 January 2018. This rating recognises the high quality of Bhukia, but also that the PL remains outstanding. We have an illustrative valuation matrix justifying a valuation of 32p/share currently, increasing to 57p on the grant of the PL with the potential to increase to 109p if Panthera successfully outlines a JORC-compliant resource of 6.7Moz. We expect to revisit our recommendation after the granting of a PL or positive exploration results from the company’s West African projects. 

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Mon, 19 Feb 2018 09:22:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29396/in-the-news-panthera-resources-29396.html
In the news: Metal Tiger http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29322/in-the-news-metal-tiger-29322.html FROM THE BROKING DESK

Jim Taylor has released Metal Tiger* — Positive PFS Completed, 31 January 2018. This piece covers the results of a positive pre-feasibility study into the development of the T3 Project in Botswana, in which the company owns a 30% JV interest, with the ASX-listed MOD Resources owning the remaining 70%. The JV now aims to complete a definitive feasibility study on the project by the end of 2018, with a view to taking a decision to mine by the end of the year.

 

We maintained our Buy rating and target price of 3.6p. We’ve updated our valuation for the PFS parameters and increased our long-term copper price assumption by 10% from US$5,995/t to US$6,612/t. We consider that the results of the PFS reflect an interim stage of the project’s development and note that drilling has been ongoing since August, which will lead to a resource update (planned for 2Q18). We also observe that drilling of many high-quality regional exploration targets is planned to be undertaken this year. 

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Thu, 01 Feb 2018 15:28:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29322/in-the-news-metal-tiger-29322.html
In the news: Weatherly International http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29331/in-the-news-weatherly-international-29331.html COMPANIES

WEATHERLY INTERNATIONAL*

WTI : LN | 1.8p | US$26.5m | Speculative Buy

Outlines Plans for Kitumba Copper Project in Zambia

Weatherly International is continuing to move towards completing the acquisition of the Kitumba Copper Project in Zambia, with shareholders of the current owner Intrepid having recently voted in favour of the deal. The transaction remains subject to regulatory approvals in Zambia, but we expect it to proceed. The company also outlined what appear to be very sensible plans for a re-scoping of the project as a smaller, higher-grade operation with a simpler processing route. Weatherly also stated that it plans to complete an updated PFS in 2018 and a DFS in 2019, potentially allowing construction to commence in 2020.

COMMENT: Kitumba is an attractive, mid-scale copper project that has had a significant amount of work completed on it. At a cut-off grade of 1.0% Cu the total resource at the project contained 578,000t Cu at a grade of 2.3% Cu. The top of the deposit lies around 150m below surface and contains both oxide and sulphide mineralisation. It was historically viewed as a relatively large-scale development of an underground mine, along with a complicated processing route that involved the pressure oxidation of the sulphide mineralisation and before leaching.

Weatherly is proposing a staged development, with an initial focus on the higher-grade core. At a 2% Cu cut-off, the resource totals 342,000t of copper at a grade of 3.6%. The company is considering a processing rate of 0.75-1.0Mtpa and envisages using a simpler processing route that would initially float the sulphide mineralisation to produce a copper concentrate and undertake a tank leach of the flotation tail to produce copper cathode. No details are available, but we suggest that this approach could result in a smaller — but considerably higher return — project compared to previous development scenarios.

We reiterate our Speculative Buy rating on the basis that Weatherly offers significant operational and financial leverage to the price of copper. We also consider that the acquisition of the Kitumba Project has the potential to add significantly to the value of the company. However, we do not consider it appropriate to have a target price at this time given the ongoing support needed from Orion

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Fri, 02 Feb 2018 10:37:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29331/in-the-news-weatherly-international-29331.html
In the news: Panthera Resources http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29367/in-the-news-panthera-resources-29367.html FROM THE BROKING DESK

We’re marketing Geoff Stanley of Panthera Resources* (PAT LN) in the UK next week. RFC Ambrian listed Panthera on AIM just before Christmas last year. It owns rights to a 70% interest in the Bhukia Gold Project in Rajasthan, India, where it has defined a JORC resource of 1.74Moz of gold at a grade of 1.4 g/t.

While the company is underpinned by a portfolio of prospective West African gold exploration licences, it’s Bhukia that provides the most potential. The Geological Survey of India (GSI) has explored the project area, estimating a resource of 6.7Moz at a grade of 2.0 g/t; although not code-compliant, this represents a very well-defined exploration target. Mineralisation remains open in all directions, suggesting the ultimate size of the project could be even greater. Progress on the granting of the Prospecting Licence (PL) has picked up over the past year and, although the timing remains uncertain, the process appears on track. Panthera offers upside to exploration results from its West African portfolio and the grant of the PL and the resource drill-out at Bhukia.

 

RFC Ambrian recently initiated coverage with a Speculative Buy: Panthera Resources — Chasing an Indian Elephant, 15 January 2018. This rating recognises the high quality of Bhukia, but also that the PL remains outstanding. We have presented an illustrative valuation matrix justifying a valuation of 32p/share currently, increasing to 57p on the grant of the PL with the potential to increase to 109p if Panthera successfully outlines a JORC-compliant resource of 6.7Moz. We expect to revisit our recommendation after the granting of a PL or positive exploration results from the company’s West African projects. 

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Mon, 12 Feb 2018 10:02:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29367/in-the-news-panthera-resources-29367.html
In the news: Metal Tiger http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29317/in-the-news-metal-tiger-29317.html FROM THE BROKING DESK

We’ve had some more positive news from Metal Tiger*. The PFS for the open-pit, high-grade T3 Copper Project in Botswana has been completed; Metal Tiger owns 30% of this in a JV with the ASX-listed MOD Resources. In a ‘base case’ scenario, with production from Proven and Probable ore reserves and throughput of 2.5Mtpa, the PFS indicates about US$730m in EBITDA over nine years, and — were the expansion case to proceed — an EBITDA of US$1.1bn over 12 years. The JV partners have agreed to proceed with a feasibility study this quarter. Other headlines from the base case PFS were: a pre-tax NPV8% of US$281m, using a long-term US$3.00/lb Cu price, IRR of 39% and payback of 2.7 years.

As CEO Michael McNeilly pointed out, this PFS is “robust”. There’s no doubt that the T3 deposit is an extremely exciting prospect. I don’t think the market has seen a copper project this good for quite a while, and it’s also encouraging that the relationship with MOD is strong; the two parties are working well together to progress this. We should have a full piece out on this later.

 

In a separate announcement, Metal Tiger has now sold down its position in Kingsgate Consolidated Limited (KCN) to zero. This is the second sell-down in a week, and raised a further £1,973,209 for Metal Tiger. While the company may not have achieved all its ambitions with Kingsgate, it’s certainly proved a very lucrative bit of trading. 

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Wed, 31 Jan 2018 11:28:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29317/in-the-news-metal-tiger-29317.html
In the news: Panthera Resources http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29307/in-the-news-panthera-resources-29307.html FROM THE BROKING DESK

In view of yesterday’s news that Panthera Resources* (PAT LN) had made significant progress towards getting a Prospecting Licence, we thought our recent report was worth highlighting. Last month Jim Taylor released this initiation report: Panthera Resources — Chasing an Indian Elephant, 15 January 2018. This is a 40-page introduction to the recently-listed, UK-based mineral exploration and development company. The potential Prospecting Licence is for the Bhukia Gold Project in Rajasthan, India, where Panthera owns rights to a 70% interest.

 

Previous work by the Geological Survey of India outlined a non-compliant resource containing 6.7Moz of gold at a grade of 2.0 g/t Au at Bhukia. Also, a limited drill programme by the company outlined a JORC-compliant resource of 1.7Moz of gold at a grade of 1.4 g/t. Mineralisation extends from surface, supporting the view that the project should be able to be developed as a large, bulk-mineable, open-pit operation with a low strip ratio. Metallurgical work to date suggests the gold is non-refractory and that the most appropriate processing route is likely to be flotation followed by regrinding and CIL, with 85-90% recoveries expected. 

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Tue, 30 Jan 2018 09:58:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29307/in-the-news-panthera-resources-29307.html
In the news: Base Resources, KEFI Minerals & Weatherly International http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29259/in-the-news-base-resources-kefi-minerals-weatherly-international-29259.html FROM THE BROKING DESK

Base Resources* has announced the successful close of the retail component of its entitlement offering, with an approximate 70% participation, raising A$7.7m. This follows on from the strong support it received for the institutional entitlement offer and placing component, which was led and underwritten by RFC Ambrian. This was completed earlier in January and secured A$89m at the offer price of A$0.255/share (around £0.165).

The company agreed to acquire an 85% interest in the Toliara Sands Project in Madagascar for US$75m in December 2017. The remaining 15% can be acquired for US$17m, payable on achieving certain milestones. With the completion of the capital raise, Base will now finalise the acquisition, which is expected to close next week.

The Toliara Sands Project is already permitted, and is underpinned by the Ranobe deposit. This deposit has a JORC 2012 Resource of 857Mt at 6.2% heavy mineral (HM), including 612Mt at 6.7% HM in the Measured and Indicated categories. By our calculations that makes it one of the largest and highest-grade heavy mineral sands development projects anywhere in the world. We estimate the NPV10 of Toliara at US$390m, net of milestone payments.

Much good work has already been completed by the previous owner World Titanium Resources. Base’s development plan is to complete a full study phase ahead of a decision to proceed to construction in 2HCY19. This timetable could see the Toliara Sands Project in production in mid-2021.

We think this is the best development asset in the space with the right management team at the right time in the cycle. This acquisition should be transformational for Base, giving it the opportunity to enhance its already demonstrated development expertise at the Kwale Project in Kenya. Unlike much of its peer group, Base will enjoy the benefits of asset and jurisdictional diversification and scale. Mine life, projected for at least 30 years at Toliara, will no longer be an issue for the company; we see no reason for the stock to trade at a discount to the sector any longer.

We have published two pieces on Base in the last month or so. The first one looking at the Toliara acquisition can be seen here, while last week’s piece on its latest quarterly update can be viewed here.

 

On reports, we had some issues with our website yesterday. This meant that our piece on KEFI Minerals’* latest release was not fully available. It can now be accessed here

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Fri, 19 Jan 2018 13:01:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29259/in-the-news-base-resources-kefi-minerals-weatherly-international-29259.html
In the News - Metal Tiger & Plateau Uranium http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29278/in-the-news-metal-tiger-plateau-uranium-29278.html FROM THE BROKING DESK

There are a couple of bits of news out on Metal Tiger* that we think are worth mentioning. It has announced that it has reduced its holding in Kingsgate Consolidated Limited (KCN), selling just under 8m shares for gross proceeds of £1,534,260. Metal Tiger retains just over 11.5m shares in KCN, representing 5.15% of the issued share capital.

Metal Tiger has been critical of Kingsgate management. It was narrowly defeated in an attempt earlier this month to remove three existing directors from the board of Kingsgate and replace them with five new directors, including Richard Warburton. MTR Chief Executive Michael McNeilly says the sale of the shares in Kingsgate does not “mean we are going away” and that “… we will be watching the Board closely to see if they deliver on what they have promised.” MTR has said that the bulk of its attention will turn to its copper/silver JV with MOD Resources on the T3 deposit in Botswana. A PFS on T3 is expected shortly.

Metal Tiger has also announced a £300,000 investment into the AIM- and ASX-listed Thor Mining. Thor has a portfolio of tungsten, copper and lithium projects in Australia and Arizona.

 

We remind investors that Ian Stalker, Chairman of Plateau Uranium†† and CEO of LSC Lithium, is marketing with us on both companies next week. LSC Lithium is a TSX-listed company with a market cap of around C$200m and is looking to deliver an initial NI 43-101 resource shortly. LSC boasts the largest land package of lithium-bearing brines in northern Argentina, a prolific area within the ‘Lithium Triangle’ covering Argentina, Bolivia and Chile. Please let us know if you would like to meet with Ian. 

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Wed, 24 Jan 2018 11:19:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29278/in-the-news-metal-tiger-plateau-uranium-29278.html
In the news: West African Gold http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29289/in-the-news-west-african-gold-29289.html FROM THE BROKING DESK

Jim Taylor and David Bird have a new sector piece out: West African Gold — Plenty to Play For, January 2018. In an 80-page report, they review the current status of the West African gold sector. The piece includes features on the region, the main countries involved and the companies active in the space.

The gold industry in West Africa remains healthy. Gold output is robust, with slowly declining average grades partly offset by improved recoveries. Six new mines are currently coming on stream, there are a significant number of projects at the feasibility stage, and exploration expenditure increased in 2017. While geopolitical risks remain, that has always been the case and the investment framework is stable and the legal structure is sound.

The report takes a fresh look at current gold mining, development and exploration activity in West Africa. Our database has identified 38 mines operating in the region in 2017, with a further six under construction that were due to come on stream in late-2017 and in early-2018. We have also identified 24 greenfield exploration projects that have a reported resource of more than 1.0Moz and a further 23 projects at an earlier stage of exploration.

 

West Africa is one of the world’s great gold provinces and we have taken a look at the players in the region, both the producers and the explorers. Within our database of West African gold producers, we identified 21 listed companies. Of these, we regard seven as ‘globally-focused’ producers, with the balance largely ‘regionally-focused’, although some of these regional players do have assets elsewhere. Then, within our database of West African gold explorers, we have identified a further 22 junior companies that are currently active in the region. 

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Fri, 26 Jan 2018 11:46:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29289/in-the-news-west-african-gold-29289.html
In the news: Panthera Resources & West African Gold http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29298/in-the-news-panthera-resources-west-african-gold-29298.html FROM THE BROKING DESK

Panthera Resources* (PAT LN) has announced that significant progress has been made towards the granting of a Prospecting Licence (PL) over the Bhukia Gold Project in the State of Rajasthan in India. The company’s JV has withdrawn four petitions that prevented the Government of Rajasthan (GoR) from creating third-party interests over a large area previously held by the JV under a Reconnaissance Permit. The High Court of Rajasthan noted letters from the GoR of its intent to grant the PL if the JV withdrew all pending court cases and directed the GoR to take a decision on the grant of the PL application, preferably within three months. Importantly, the court also gave the JV the right to refile and approach it with fresh cause if the decision of the GoR is unfavourable.

This is excellent news for Panthera. The company has been involved in a protracted process to have a PL granted over a 21km2 area at Bhukia; previous work on the area by the Geological Survey of India outlined a non-compliant resource containing 6.7Moz of gold at a grade of 2.0 g/t Au, while a limited drill programme by the company outlined a JORC-compliant resource of 1.7Moz of gold at a grade of 1.4 g/t. Mineralisation extends from surface, supporting the view that the project should be able to be developed as a large, bulk-mineable, open-pit operation with a low strip ratio. Metallurgical work to date suggests the gold is non-refractory and that the most appropriate processing route is likely to be flotation followed by regrinding and CIL, with 85-90% recoveries expected.

We think this is a significant step towards the granting of the licence. The implication is that a decision on the PL could be taken by the GoR within three months. This would be followed by the granting of consent for the PL by the Federal Government of India (GoI) before the final grant and execution of the PL by the GoR, paving the way for the recommencement of exploration activity at the project.

A total of 370 drill holes have been completed on site since 1990. These have provided a large database of information and a very helpful guide to future exploration. The company expects the completion of an exploration programme to deliver a JORC-compliant resource over the project area could cost US$20m and would take two years to complete. Pending the grant of the PL, we maintain our Speculative Buy rating.

We had a problem with our website last Friday. A few people alerted us to the fact that they couldn’t get access to Jim Taylor and David Bird’s 80-page report West African Gold — Plenty to Play For, January 2018. This has now been updated and we apologise for any inconvenience

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Mon, 29 Jan 2018 09:59:00 +0000 http://www.proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/29298/in-the-news-panthera-resources-west-african-gold-29298.html