Proactive Investors - Run By Investors For Investors

Beaufort Securities Breakfast Alert: Armadale Capital and Katoro

Beaufort Securities Breakfast Alert: Armadale Capital and Katoro

Markets
Europe
The FTSE-100 finished yesterday's session 0.02% lower at 7,417.24, whilst the FTSE AIM All-Share index was up 0.02% at 1,029.47. In continental Europe, the CAC-40 finished 0.50% higher at 5,379.54 whilst the DAX was down 0.05% at 13,008.55.
Wall Street
In New York last night, markets were closed yesterday for Thanksgiving.
Asia
In Asian markets this morning, the Nikkei 225 was recently up 0.14% at 22,553.75 and the Hang Seng was 0.27% higher at 29,787.69.
Oil
In early trade today, WTI crude was 0.69% higher at $58.42 per barrel, while Brent was down 0.24% at $63.4.
________________________________________
Headlines
Budget 2017: Tax move will penalise savers, says insurer
Millions of small savers may be hit by a little noticed tax change in the Budget that affects long term policies sold by insurance companies and sometimes collected door to door. When the chancellor announced he was abolishing the Corporate Indexation Allowance on Wednesday, the Treasury said it wouldn't affect individuals. But Royal London Insurance said savers are likely to lose out. It said the total cost could amount to hundreds of millions of pounds. "From the early numbers that we've looked at we think that millions of people have these policies and they'll be losing relatively modest amounts of money, perhaps £25 or £50, some of them a lot more," said Steve Webb, director of policy at Royal London. "But this all adds up to huge amounts, hundreds of millions of pounds for the Chancellor," he said. Royal London says the tax change announced in the Budget will affect a group of investment policies or endowments, sometimes lasting decades and designed to provide a lump sum or something to pass on to family. They are often bought from door-to-door sales reps, collecting a few pounds a week, or from adverts in magazines and papers or direct from the companies.
Source: BBC News
________________________________________
Company news
Armadale Capital (LON:ACP, 2.00p) – Speculative Buy
Yesterday Armadale announced that it has appointed BatteryLimits, a leading graphite consultancy and engineering company, to manage the engineering and processing aspects of its wholly owned Mahenge Liandu graphite project in Tanzania. Completion of a Scoping Study is expected in early 2018, followed by a Feasibility Study by the end the first half of 2018. BatteryLimints will manage the feasibility process in which a staged approach is planned with Stage 1 targeting 400,000tpa throughput with a head grade of 10-15% TGC from near surface high-grade mineralisation. Stage 2 will focus on increasing production in line with growth on the expanding graphite market. Work continues upgrading the current high-grade JORC-compliant resource of 40.9Mt grading 9.41% TGC with results expected in Q4 2017. Mahenge Liandu is one of the highest-grade graphite projects in Tanzania and thus has the potential to produce high-quality graphite concentrates, which should be suitable for a number of commercial applications.

Our view: We continue to be impressed with the exceptional high-grade, shallow intercepts coming from Mehange Liandu, representing some of the highest grades reported from graphite deposits in Tanzania. The appointment of experienced graphite consultants to manage project is good news for the Company as it continues to develop the Mehange Liandu deposit. Armadale is looking to capitalise on the expected growth in the graphite market driven by increasing applications particularly in the energy storage market. We look forward the updated resource estimate by year end as well as results from the scoping study in early 2018 followed by feasibility study during H2 2018. In the meantime, we maintain a Speculative Buy rating on the stock.

Beaufort Securities acts as a corporate broker to Armadale Capital PLC

Katoro Gold (LON:KAT, 2.75p) – Speculative Buy
Katoro Gold, the Tanzania focused gold exploration and development company, announced that it has commissioned a LiDAR (Light Detection and Ranging) survey at its Imweru gold project. The LiDAR survey will provide a highly accurate digital elevation map which will aid in the resource estimation and optimising the planned pit design for the project. Cost of the survey is approximately US$14,000 and will be satisfied through the issue of new ordinary shares in Katoro once completed. Imweru has a current JORC-compliant mineral resource estimate of 515,110oz of gold comprising 82% in the Inferred and 18% in the Indicated categories.

Our view: Completion of a LiDAR survey will provide accurate data necessary to generate a detailed digital elevation map which is crucial for the development of the pit design as well as forming a solid base for the mineral resource estimate. We continued to be encouraged with the pace of development at Imweru and look forward to further announcements regarding completion of the ESIA and the PFS. In the meantime, we maintain a Speculative Buy recommendation on the stock.

Beaufort Securities acts as a corporate broker to Katoro Gold plc

Important Risk Warnings and Disclaimers 

This report is published by Beaufort Securities Ltd ("Beaufort Securities"). Beaufort Securities Ltd is Authorised and Regulated by the Financial Conduct Authority and is a Member of the London Stock Exchange. 

RELIANCE ON THIS NOTE FOR THE PURPOSE OF ENGAGING IN ANY INVESTMENT ACTIVITY MAY EXPOSE YOU TO A SIGNIFICANT RISK OF LOSING ALL OF THE FUNDS, PROPERTY OR OTHER ASSETS INVESTED OR OF INCURRING ADDITIONAL LIABILITY. 

This document is not an offer to buy or sell any security or currency. This document does not provide you with individually tailored investment advice. It has been prepared without regard to the your financial circumstances and objectives The appropriateness of a particular investment or currency will depend on your individual circumstances and objectives. The investments and shares referred to in this document may not be suitable for you. 

This research is non-independent and is classified as a Marketing Communication under FCA rules. As such it has not been prepared in accordance with legal requirements designed to promote independence of investment research and it is not subject to the prohibition on dealing ahead of the dissemination of investment research in COBS 12.2.5. However Beaufort Securities has adopted internal procedures which prohibit analysts from dealing ahead of non-independent research, except for legitimate market making and fulfilling clients' unsolicited orders. 

By receiving this document, you will not be deemed a client or provided with the protections afforded to clients of Beaufort Securities. When distributing this document, Beaufort Securities is not acting for you and will not be responsible for providing advice to you in relation to this document. Accordingly, Beaufort Securities will not be responsible to you for providing the protections afforded to its clients. 

Beaufort Securities may effect transactions in shares mentioned herein and may take proprietary trading positions in those shares, and may receive remuneration for the publication of its research and for other services. Beaufort Securities may be a shareholder in any of the companies mentioned in this report. Accordingly, this document may not be considered as objective or impartial. Additionally, information may be available to Beaufort Securities or the Group, which is not reflected in this material. The remuneration of the author of this report is not tied to the recommendations on any shares mentioned nor to the any transactions undertaken by Beaufort Securities or any affiliate company. Further information on Beaufort Securities' policy regarding potential conflicts of interest in the context of investment research and Beaufort Securities' policy on disclosure and conflicts in general are available on request. Please refer to http://www.beaufortsecurities.com/important-info. 

Past performance is not a guarantee of future performance. Investments may go down in value as well as up and you may not get back the full amount invested. The listing requirements for securities listed on AIM or the ICAP Securities & Derivatives Exchange are less demanding and trading in them may be less liquid than main markets. This may make it more difficult to buy and sell these securities. 

 

This document includes certain statements, estimates, and projections with respect to the anticipated future performance of securities listed on stock exchanges and as to the market for these shares. Such statements, estimates, and projections are based on information that we consider reliable and may reflect various assumptions made concerning anticipated economic developments, which have not been independently verified and may or may not prove correct. No representation or warranty is made as to the accuracy of such statements, estimates, and projections or as to its fitness for the purpose intended and it should not be relied upon as such. Opinions expressed are our current opinions as of the date appearing on this material only and may change without notice. Other third parties may have issued other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect the different assumptions, views, and analytical methods of the analysts who prepared them. This report has not been disclosed to any of the companies mentioned herein prior to its publication. 

This document is based on information Beaufort Securities has received from publicly available reports and industry sources. Beaufort Securities may not have verified all of this information with third parties. Neither Beaufort Securities nor its advisors, directors or employees can guarantee the accuracy, reasonableness or completeness of the information received from any sources consulted for this publication, and neither Beaufort Securities nor its advisors, directors or employees accepts any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document (except in respect of wilful default and to the extent that any such liability cannot be excluded by the applicable law). You should not rely on this document and should not use it substitution for the exercise of the independent judgment of yourself or your adviser. 

The information contained in this document is confidential and is solely for use of those persons to whom it is addressed and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose. Other persons who receive this document should not rely on it. Beaufort Securities, its directors, officers and employees may have positions in the securities mentioned herein.

 

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use