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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Pharma & Biotech

Most followed: Mining in the frozen east ... and balmy Mexico

Mining is a tough business at the best of times but hacking away in Siberia or the far east of Russia must require an especially hardy sort

Mining is a tough business but even so working for a company called Trans-Siberian Gold PLC (LON:TSG) sounds like an arduous gig.

The company ground out some 1,115 metres of mine development in the first quarter of the year at its Asacha asset, and did 44,067 tonnes of ore attraction.

Plant throughput averaged 13,433 tonnes per month, which was 7.5% above plan, but in order to reach these sorts of levels it has been necessary to process earlier mined tonnage with lower grades.

“Some issues in the mine during the quarter appear to have impacted grade, stopping the company increasing production levels; however, at 9.2koz, quarterly production was stable, which is far from negative in our view,” suggested the company's broker, Cantor Fitzgerald.

The market begged to differ and the shares were off more than 7%.

If reading about Trans-Siberian Gold made you feel cold, you'd better grab a jumper or even a slanket as we move on to Amur Minerals Corporation (LON:AMC), the company developing the Kun-Manie nickel copper sulphide project way, way out east in Russia.

If I remember the details of a presentation chief executive Robin Young once gave at a Proactive Investors One2One investor forum, the company has a limited window in which to transport all of its kit & caboodle to the project before the ice road becomes more of a slush road.

It told investors this morning that it had managed to completely re-stock the project over the winter and deliver some equipment that will more than double the company's drilling capacity, and the good news is that it might be able to make an early start on the 2016 drilling season thanks to what the company described as “unseasonably warm” weather.

That's unseasonably warm for Russia; in all probability, even Newcastle United fans might be tempted to put a vest on in that climate.

Things are a sight warmer south of the border, down Mexico way, which is where Rare Earth Minerals plc (LON:REM) has its Sonora lithium project.

Work continues apace on the project, with work for a key feasibility study now in progress while discussions continue over financing.

I have no idea what sort of company Sprue Aegis PLC (LON:SPRP) is; I could be wrong but when I think of a sprue I think of the plastic framework on which Airfix aircraft components came, while aegis is Greek for shield, but unless the company is making plastic model Argonauts it does not seem likely that the name is descriptive.

So, given the shares have almost halved this morning let us look at the trading update to learn what it does and why its share price have collapsed.

It turns out it is a home safety product supplier, which explains the aegis bit, and the reason the share price has been trashed is because it has raised the alarm over this year's profits, which will be hit by tough trading conditions in France and Germany.

Results from The People's Operator PLC (LON:TPOP), the cause-based commercial mobile virtual network operator, sent the shares tumbling 5p to 30p.

Losses ballooned to £10.5mln from £2.3mln, reflecting investments made to grow the business during 2015.

On the plus side, UK subscriber numbers at year-end stood at 69,000, up 390% from 14,000 as at year-end 2014, and with a churn rate of just 4% or thereabouts it is evident that once people have signed up with the network, people like it.

Lastly, the Independent reports that the popularity of fizzy wine Prosecco is putting pressure on supermarket supplies. It appears that fans may have to make do with cava.

I don't know a lot about wine, but this is surely an opportunity for British sparkling wine makers to make their play?

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The Markets
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