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Beaufort Securities Breakfast Alert - Mid-earners 'locked out of buying a home'

Beaufort Securities Breakfast Alert - Mid-earners 'locked out of buying a home'


The FTSE-100 finished yesterday's session 0.29% higher at 7,234.81, whilst the FTSE AIM All-Share index was up 0.82% at 1,030.13. In continental Europe, the CAC-40 finished 1.11% higher at 5,222.52 whilst the DAX was up 0.06% at 12,346.17.

Wall Street
Last night in New York, the Dow gained 306.88 points, or 1.23%, to end the day at 25,200.37. The S&P 500 added 32.57 points, or 1.21%, to close at 2,731.20 and NASDAQ finished 112.81 points higher at 7,256.43.

In Asia this morning, the Nikkei 225 was up 255.27 points at 21,720.25 heading into the close. The Hang Seng remains closed for a public holiday.


At around 6:15am, WTI crude was 0.33% higher at $61.37 per barrel and Brent was up 0.40% at $64.59 per barrel. 



Mid-earners 'locked out of buying a home'
The extent to which young people are locked out of the British housing market has been revealed in new figures from economists. The biggest decline in home ownership in the last 20 years has been among middle-income 25 to 34-year-olds, the Institute for Fiscal Studies said. In 1995-96, 65% of this group owned a home, but just 27% do in 2015-16, with the biggest drop in south-east England.Middle earners are defined as having take-home pay of £22,200 to £30,600. This can be either as an individual or as a couple. A third of them are university graduates, while 30% left school at 16. Three-quarters of them live with a partner, and around 60% have children. The proportion of these middle earners owning a home (27%) has moved closer to the likelihood of those with a low income (8%) than those on a high income (64%).

Source: BBC News


Company news


Hummingbird Resources (LON:HUM) 33.5p – Speculative Buy
Hummingbird has announced an update on operations at the Yanfolila gold mine in Mali following its first gold pour in December 2017. The plant has been ramping up towards full production and is currently operating at an average of 90% of design capacity while achieving 96% recovery. The latter is significantly higher than the 92.5% stated in the DFS. To date, total gold recovered is 10,737oz (from 147,977t of ore) of which, almost half has been shipped to refiners. During this time, the plant has been processing ore from lower-grade stockpiles and is currently processing higher-grade ore. The Company also stated that it plans to spend US$8-10m this year on exploration by converting it's resources outside of the existing mine plan to reserves.

Our view: It's good to see the plant running almost at design capacity and we are encouraged with the very-high recovery rates to date. We also note that the Company is committed to exploration by spending a significant portion of its cash flows on converting additional resources to reserves. We look forward to further updates from Yanfolila as the plant begins to process higher-grade material. In the meantime, we reiterate our speculative buy on the stock.

Beaufort Securities acts as corporate broker to Hummingbird Resources plc


 Sunrise Resources (LON:SRES) 33.5p – Speculative Buy

Sunrise Resources has announced Phase 2 drilling results from its flagship CS Project, an industrial minerals deposit in Nevada. 25 RC holes were drilled (some infill, some step out) and all but one hit the targeted material. The main news is the step out holes intersected thick pozzolan and perlite material leading management to state that the CS Project has “very large tonnage potential”.

Our view:The previous CS Project news reported more excellent cement testwork results, confirming that CS Project pozzolan is a high performing fly ash alternative for cement manufacturing. It is also an environmentally friendly material unlike fly ash which is produced from burning coal. Today’s news confirms the long life potential of the project. Annual production tonnage will be determined by demand/marketing success. Also bear in mind that before mining starts permitting and various other licenses will be required. However the product is excellent, the deposit is large, Nevada is a good mining jurisdiction and upfront capex is likely to be modest. We have a Speculative Buy recommendation.

Beaufort Securities acts as corporate broker to Sunrise Resources Plc

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