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Premier Oil soars higher lenders give it more breathing space

Last updated: 15:30 30 Nov 2016 GMT, First published: 09:30 30 Nov 2016 GMT

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Although it was expected, investors in Premier Oil PLC (LON:PMO) breathed a collective sigh of relief as the oil company’s lenders once again agreed to defer a financial stress test.

Its creditors have been fairly lenient in recent months while Premier works on a refinancing deal, having deferred the stress test on the company’s covenants several times.

Premier told the markets that it expects to receive these monthly pushbacks until the negotiations finish.

Perhaps of more importance to investors, was the Premier said it is making “good progress” in finalising the revised terms of its loans.

Shares were up 17% shortly before London, retracing some of the ground lost since it was granted a roll-over last month.

Shares in Australian gold miner Keras Resources PLC (LON:KRS) were also up on Wednesday afternoon.

Keras told investors that it had completed reverse circulation drilling at its flagship Klondyke gold project in Western Australia, with visible gold identified in one hole.

Full results from the programme are expected within the next six weeks, with Keras reminding investors that it believes there is “significant upside potential” at the project, which it hopes the drilling confirm.

“Encountering visible gold in this initial RC drill programme is exceptional and supports our confidence in the project's prospectivity,” said managing director Dave Reeves.

“However more definitive results will be available in the coming weeks which we believe will confirm the potential of Klondyke.”

 

12.15pm...Webis bemoans “cost of staying competitive” as shares slump

Investors were pulling their cash out of Webis Holdings Plc (LON:WEB) on Wednesday after the gaming and technology group revealed that it had recorded a lower profit on higher revenues.

Group turnover for the year to May was US$224.3mln compared to US$154.4mln a year earlier, although gross profits fell to US$4.1mln (2015: US$4.2mln).

Webis blamed “the cost of staying competitive” as the reason for the downturn in profitability, as well as the cost of keeping up with compliance and regulatory requirements around the world.

“Despite an overall loss reported on the year, the Board are very encouraged by the growth in the business, especially in the second half of the year and the first quarter of the new financial year,” non-executive chairman Denham Eke said.

“The Board remains confident that the strategies adopted are regulatory compliant, correctly aligned and focussed to ensure the best prospects for future growth and a return to profitability.”

Investors didn’t buy it though and were clearly unimpressed, with the share price falling more than 20% to 1.41p.

 

9.30am...Bezant Resources shines on bullish Colombia update

It was a good start to Wednesday if you’re a shareholder in mineral explorer Bezant Resources plc (LON:BZT).

Bezant told investors that it had recovered initial gold and platinum from the exploration processing plant at its FKJ 083 licence area in the Choco province of Colombia.

So far, 22 test pits have been excavated at FKJ-083 to depths of between four and twelve metres, from which 95 individual samples have been extracted.

Pleasingly for the company and its investors, visible gold and platinum have been observed in the final sample concentrates.

A selection of these will be sent off to an independent laboratory shortly to verify the grades, which Bezant hopes will confirm the “successful” extraction results.

Should they do so, Bezant plans to begin surface, dry mining production development at the licence area in the first half of next year.

It will also consider exercising some or all of the options it holds in the surrounding areas of Choco – which used to be the world’s main platinum source for more than a century.

Shares were up almost 50% to 2.35p on Wednesday morning.

Elsewhere, Zoopla Property Group PLC (LON:ZPLA) built on its recent rally as it added another 7% to its share price.

The online property firm announced buoyant full-year results, with revenue soaring by 84% to £197.7mln.

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