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Northland Capital Partners View on the City - Sunrise Resources & Edenville Energy.

Northland Capital Partners View on the City - Sunrise Resources & Edenville Energy.

SUNRISE RESOURCES (LON:SRES)

SECTOR – MINING

RATING – CORP*

MARKET CAP – £3.8m

CURRENT PRICE – 0.15p#

ANALYST – BARRY GIBB      

 

Year-end Sept

2016A

2017A

 

 

 

Revenue (£m)

-

-

No forecasts provided

EBITDA (£m)

(0.4)

(0.3)

Adj. pre-tax Profit (£m)

(0.4)

(0.3)

Adj. EPS (p)

(0.04)

(0.02)

DPS (p)

-

-

Net Cash/(Debt) (£m)

0.05

0.12

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited Acts as Nomad and Joint Broker to Sunrise Resources and therefore this information should be viewed as a Marketing Communication.

 

From Yesterday: VR COMPLETES SURVEY, PREPARES FOR DRILLING

 

NORTHLAND VIEW

  • Sunrise Resources yesterday afternoon provided an update on the Junction Copper-Silver-Gold Project in Nevada, USA, in which it holds an interest.  Its joint venture partner, VR Resources announced that field preparations are now underway for a targeted, first pass drill programme on the mineralization. 
  • The company has received final approvals for required drill permits, a drill contract has been executed, and start-up is planned for later this month.  Highway access to the property, and ranch roads throughout the property facilitate cost-effective exploration at Junction. This drill programme is the result of more or less continuous surface exploration at Junction since April, 2018.
  • VR reported that the copper-silver mineralization at Junction has been sampled at surface along a 6kmtrend, in coarse-grained quartz-feldspar granite dykes hosted within a sheared, polyphase cretaceous batholith and that bornite-chalcopyrite copper sulfide aggregates contain micro-inclusions of silver, resulting in a nearly 1:1 correlation of copper and silver in assay data from more than 100 samples.  VR stated that the correlation does not vary along the 6kmtrend, nor does it vary depending on the copper grade of a sample, or the ratio of copper sulfide versus oxide.
  • VR's two drill targets include the Denio Summit Target at the western end of the copper-silver trend, which occurs wholly within the Sunrise Area of Interest.  It reported a series of mineralized quartz-feldspar granite dykes and gold-bearing quartz veins occur at surface along a 1.5kmtrend, and a broad soil anomaly with copper, silver, gold and tungsten enriched in multiple stations on multiple lines underlies the northern 1,000m of the surface trend of showings

While Sunrise’s focus remains firmly on developing its CS Pozzolan-Perlite Project in Nevada, USA, this news serves as a useful reminder of the value that remains within its wider portfolio of non-core drill stage exploration projects.  Should VR commence its drill programme, it is an event that would trigger a further issue of shares to Sunrise, which also retains a 3% royalty payable on any future production.

 

COMPANY DESCRIPTION

Sunrise Resources is an exploration company focused on its 100%-owned CS Pozzolan-Perlite Project, located in Nevada

 

 

 

Edenville Energy (LON:EDL)

SECTOR – MINING

RATING – CORP*

MARKET CAP – £2.9m

CURRENT PRICE – 0.19p#

ANALYST – BARRY GIBB              

 

 

Year-end Dec

2016A

2017A

 

 

 

Revenue (£m)

-

-

No forecasts provided

EBITDA (£m)

(3.2)

(1.2)

Adj. pre-tax Profit (£m)

(3.2)

(1.2)

Adj. EPS (p)

(0.5)

(0.1)

DPS (p)

-

-

Net Cash/(Debt) (£m)

0.1

0.8

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and Broker to Edenville Energy and therefore this information should be viewed as a Marketing Communication.

 

Latest Tanesco Announcement – Tender Process Resumes

 

NORTHLAND VIEW

  • Edenville Energy commented on the latest newspaper announcement and subsequent Invitation for Qualification (IFQ) by Tanzania Electricity Supply Company (‘Tanesco’) which refers to specific tenders in relation to its national power supply.
  • Having been cancelled on 2 November 2018, the tender process for coal fired power generation has now restarted, according to announcements in the Tanzanian press and the subsequent release of documents by Tanesco.
  • The Edenville group of companies has been invited to either retain their original application which was opened and accepted at the Tanesco headquarters on 19 October 2018 or, alternatively to submit a new application by the morning of 7 December 2018 in line with the requirements outlined in the Tanesco Request for Qualification (RFQ) documents. Edenville’s Board noted its understanding that at this point the application documents have not been subject to material change.

It is encouraging that the tender process has now resumed after a short delay. Since last Friday’s announcement, of course, Edenville has entered a Conditional Convertible Loan facility to make up to US$2.75m available to the Company for its immediate working capital and expansion needs, which was seen as the Company’s best funding option given the uncertainty that had suddenly been created by Tanesco’s cancellation of tenders.  Now that the process appears to be set to return to its original schedule, however, it is positioned to take advantage of the Power Master Plan that should be progressively rolled out by the Government of Tanzania in order to provide long-term power generation and transmission across the country.  Edenville presently has regular supply agreements for in excess of 8,000 tonnes per month and is busy implementing site expansion in anticipation of confirming yet further medium/longer-term supply contracts, for which the project with Tanesco now appears set to play an important part. 

 

COMPANY DESCRIPTION

Edenville Energy is moving the Rukwa Coal Project towards near-term production and advancing its Coal to Power Project.

 

 

 

1. Northland Capital Partners Limited (“Northland”) acts as Nominated Advisor and/or Broker to the company.

2. Northland) and/or its affiliates companies do beneficially own 1% or more of any class of the issuer’s equity securities, as of the end of the month immediately preceding the date of issuance of the research report or the end of the second most recent month if the issue date is less than 10 calendar days after the end of the most recent month. 

3. The authoring analyst or any associate of the authoring analyst does maintain a long or short position in any of the issuer’s securities directly or through derivatives, including options or futures positions.

4. Northland, its affiliated companies, partners, officers, directors or any authoring analyst of Northland has provided services to the issuer for remuneration during the preceding 12 months other than investment advisory or trading services.

5. Northland or any of its affiliated companies has performed investment banking services for the issuer during the 12 months preceding the date of issuance of the report.  

6. A partner, director, officer, employee or agent of Northland or any of its affiliated companies is an officer, director, employee or advisor of the issuer.  Disclosures are applicable for all companies

7. The authoring analyst, or any associate of the authoring analyst, has viewed the material operations of the issuer. 

8. The authoring analyst, or any associate of the authoring analyst, received reimbursement for travel expenses.

9. Northland makes a market in the securities of this company.

 

 

DISCLAIMER

This document is provided solely to enable clients to make their own investment decisions. It may therefore not be suitable for all recipients and does not constitute a personal recommendation to invest. It does not constitute an offer or solicitation to buy or sell securities or instruments of any kind. If you have any doubts about the suitability of this service, you should seek advice from your investment adviser. This document is produced in accordance with UK laws and regulations. It is not intended for any person whose nationality or residential circumstances may render its receipt unlawful.

The past is not necessarily a guide to future performance. The value of shares and the income arising from them can fall as well as rise and investors may get back less than they originally invested. The information contained in this document has been obtained from sources which Northland Capital Partners Limited believes to be re¬li¬able. The Com¬pany does not warrant that such information is accurate or complete. All estimates and prospective figures quoted in this report are forecasts and not guaranteed. Opinions included in this report reflect the Company’s judgement at the date of publication and are subject to change without notice. If the investment(s) mentioned in this report are denominated in a currency different from the currency of the country in which the recipient is a resident, the recipient should be aware that fluctuations in exchange rates may have an adverse effect on the value of the investment(s). The listing requirements for securities listed on AIM or PLUS markets are less demanding, also trading in them may be less liquid than main markets.

Northland Capital Partners Limited and/or its officers, as¬sociated entities or clients may have a position, or other material interest, in any securities men¬tioned in this report. Northland Capital Partners Limited does not provide recommendations on securities of firms with which it has a corporate relationship. More information about our management of Conflicts of Interest, Investment Research Methodology & Definition of Recommendations can be found at www.northlandcp.co.uk 

Northland Capital Partners Limited is authorised and regulated by the Financial Conduct Authority and a Member of the London Stock Exchange.

Published by/copyright: Northland Capital Partners Limited, 2013. All rights reserved

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