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Xcite Energy, Jubilee Platinum, Ferrex Plc, Bridge Energy and others feature in Fox-Davies Newsflash



Mining News

African Copper PLC (LON:ACU) announced record production figures for the second quarter of fiscal 2013 from its 100% owned operating mines in Botswana. For the second quarter of fiscal 2013, the Company produced 2,882t of copper in concentrate. Production in September 2012 was the third month in a row where copper produced in concentrate equalled or exceeded 950t.

Archipelago Resources PLC (LON:AR) announced a series of exceptional drilling results from its high grade southern deposits, close to infrastructure at the Toka Tindung Mine in North Sulawesi, Indonesia. The targeted near site exploration programme continues to yield significant results at Toka Tindung (with mineralisation remaining open at depth and along strike). Within the southern mineralised zone, assays have been received from 239 drill holes totalling 34,489m. Encouraging drill intersections from the deeper mineralised zones can be reported for the Kopra, Blambangan and Pajajaran deposits.

ATH Resources PLC (LON:ATH) announced that it was in discussions with its key stakeholders to secure support for a proposed refinancing plan. Consultations with key stakeholders, including the Company's lenders, are continuing, but developments over the past week have led the Directors to believe that the Company is unlikely to attract the level of capital required to continue operating without a restructuring of the Group. Given the level of liabilities within the Company, it is unlikely that shareholder value will be maintained following any possible restructuring. Accordingly, the Company has instructed Deloitte LLP to advise on all restructuring options that may be available and to assist the Board in considering the merit of any proposals from parties who may be interested in investing in or acquiring the business. The Company will update the market on developments in due course.

Aureus Mining Inc (LON:AUE) announced the approval of its Environmental Impact Statement ("EIS") and the granting of the environmental permit ("Environmental Permit") for the Company's New Liberty Project by the Liberian Environmental Protection Agency ("EPA"). The receipt of the Environmental Permit means that Aureus has all of the major licences and permits required for the construction phase of the Project. This is a major achievement in the development of New Liberty, which will be Liberia's first commercial gold mine and Aureus' first mine in its highly prospective 546km2 total licence area.

Aurum Mining PLC (LON:AUR) announced the results from the soil sampling programme that has been carried out on the Pino de Oro ("Pino") permit area in North West Spain. Previous work on the Pino permit area has focused on the "El Facho" structure where drilling to date has enabled a preliminary non-compliant resource estimate of some 122,000-145,000 ounces of gold at average grades of approximately 1g/t. A major new gold target ("Manton de Roble") with two main anomalous zones has been identified 500m to the north of El Facho. The target is potentially an extension or a repetition of the El Facho structure and, if looked at in conjunction with El Facho, could significantly bolster the size of the opportunity at Pino. Anomaly 1 is North-East trending with a strike length of some 400m when contoured at 250ppb gold. In the main section of the anomaly, there were consecutive values of 651ppb, 1,185ppb, 937ppb, 487ppb and 622ppb from samples 20m apart. Anomaly 2 is North-North-East trending with a strike length of some 150m, contoured at 250ppb gold. In the main section of the anomaly, there were consecutive values of 780ppb, 430ppb and 537ppb gold from samples 20m apart. The strike extends to 1,200m when it is contoured at 100ppb.

Condor Gold PLC (LON:CNR) announced that it has raised £4.25M by way of a private placing of 2.66 million new ordinary shares at a price of GBP1.60 each primarily with institutional investors.

Ferrex Plc (LON:FRX) announced positive update on activities at its Nayega Manganese Project ('Nayega') located in northern Togo, its Malelane Iron Ore Project ('Malelane') located in the Mpumalanga Province of South Africa and its Leinster Manganese Project ('Leinster') located in the Northern Cape and Northwest Provinces of South Africa. Regional evaluation of 92,930Ha area enveloping the Nayega deposit has delineated additional targets for Manganese (Mn) mineralisation. Selective rock samples collected close to Nayega (but outside the defined Indicated Resource 7.3Mt at 14.3% Mn) returned Mn values up to 39%. A test pitting programme on two targets is underway (both within 10 kilometres of the Nayega deposit). An exploitation permit application will be submitted I October 2012 and a Definitive feasibility study is targeted for completion in Q1 2013. It has the potential to be developed into a low capital and operating cost manganese mine by the end of 2013.

Jubilee Platinum PLC (LON:JLP) announced a conditional placing of up to 20,175,439 new ordinary shares of 1 pence each in the Company at a price of 8.55 pence to raise up to GBP 1.725M. The Placing Shares have been placed jointly by Shore Capital Stockbrokers Limited and finnCap Limited as agents to the Company, subject to the conditions of a placing agreement which include admission of the shares to trading on AIM market of the London Stock Exchange ("AIM") which is expected to occur on 19 October 2012. The proceeds of the Placing will be used, together with existing cash resources, to support growth within the Company's strategic business areas, through which Jubilee is implementing its mine-to-metals strategy.

Orosur Mining Inc (LON:OMI) announced that production for the quarter was 15,451 ounces of gold, which is 23.7 per cent higher than the corresponding quarter of the previous year while 404,997 tonnes of ore were milled at an average grade of 1.29 g/t of gold with a recovery of 91.8 per cent. The company is making good progress with the ramp at Arenal Deeps which is key to the development. It completed 1,462m of ramp development by the end of August and plan to finalize the remaining 494m by the end of the year. The Company took over all development operations in August 2012 from the contractor and progress has now been accelerated as a result. The transition has taken place without disruption and important cost savings have been achieved. Revenue of US$ 26.3M (US$ 21.0M in Q1 2011/12), with a realised gold price of $US 1,598 compared to US$ 1,612/oz in Q1 2011/12 were reported. Net profit after tax for the quarter was US$ 2.3M (US$ 4.4M in Q1 2011/12).

Oil & Gas News

Max Petroleum (LON:MXP): Where and What Next? - It seems that Max's Management just can't catch a break at the moment. In what was supposed to be a return to the well understood shallower targets in its Kazakh acreage, the first well has failed to encounter hydrocarbons. There will come a time where the exploration has to stop and the sweating of the assets they do have, has to start. That time is now. The Company has to cut its cloth to suit its resources. Given the way that Michael Young piloted the Company through a difficult period after the option scandal, he has the calibre, but does he have the appetite? We believe that the Company has the requisite ingredients to make this is a powerhouse (reserves and resources potential), the Company needs to just scale back its ambition for a year or two to place it back on an upward trajectory. If nothing happens, this Company will be lost to the bondholders and creditors, if they elect to take a positive step, they will emerge stronger and better suited to tackle the future.    


Bridge Energy (LON:BRDG): Welcome to the Market - It is a shame that the Company's first announcement as a public company is one of a dry hole, and none more disappointed I would imagine than the management team; it is a shame, but that's exploration risk for you. While it is disappointing, it is important to remember that the Company has a number of different plays and concepts in its portfolio, and given that the 18 month working capital requirements have just recently been covered (you would hope), we hope that the Company will be able to learn the lessons from this exploration well that they can learn, so that they can be in a better placed to leverage off of the position it has in the future.


Bayfield Energy (LON:BEH) & Trinity Exploration & Production : Trinidad Keeps Getting More Interesting…- The management teams that brought you Venture Production (Bruce Dingwall) and Burren Energy (Finian O'Sullivan), have combined to bring a new offering that will focus on Trinidad. Given the expertise on offer in the new venture, it is hard not to back management to make significant progress as a combined entity. This is also good news for Range Resources, as it is further confirmation of the prospectivity of Trinidad. The only dark cloud on the horizon (albeit manageable and a small in size), is the fact that Trinidad operates via service type contracts.

In this news:  

The Boards of Bayfield and Trinity are pleased to announce that they have reached agreement on the terms of a conditional merger of Bayfield and Trinity (the "Merger").

The enlarged group will be named Trinity Exploration & Production plc ("New Trinity" or the "Enlarged Group") and be led by Bruce Dingwall CBE as Executive Chairman and Joel "Monty" Pemberton as Chief Executive Officer (currently Executive Chairman and Chief Executive Officer of Trinity respectively).

Trinity is a leading private independent oil and gas company with onshore and offshore assets in Trinidad, headquartered in San Fernando, Trinidad.

The Merger will create the largest Trinidad-focused independent E&P company, with 11 operated fields, gross production of approximately 4,650 bbl/d and net production of approximately 3,800 bbl/d based on current production rates.

New Trinity will have a diversified portfolio of onshore, West and East coast production, significant near-term production growth opportunities from low risk developments and multiple exploration prospects with the potential to deliver meaningful reserves/resource growth through an active drilling programme.

In order to accelerate delivery of the significant upside that exists in the combined portfolios, the Enlarged Group intends to raise additional debt and/or equity capital in conjunction with the Merger.

Under the terms of the Merger, which will be effected by the acquisition of Trinity by Bayfield, Trinity Shareholders will own 55 per cent. of New Trinity and Bayfield Shareholders will own 45%. (on a fully diluted basis, assuming Bayfield acquires 100 per cent. of the Trinity Shares and prior to raising any additional equity capital).

The Merger constitutes a reverse takeover of Bayfield under the AIM Rules and is conditional, inter alia, upon Bayfield Shareholder approval, the approval by the Takeover Panel of the Rule 9 Waiver, and the consent of the Ministry and Petrotrin.  Accordingly, trading in the Company's shares has been suspended pending publication of an Admission Document.

Bayfield has received irrevocable undertakings to vote in favour of the Resolutions to, inter alia, approve the Merger at the Bayfield General Meeting from Bayfield Shareholders holding, in aggregate, 109,415,867 Bayfield Shares, representing approximately 50.54  per cent. of the issued share capital of Bayfield.

An Admission Document containing details of the Merger and New Trinity will be sent to Bayfield Shareholders in due course.

The Boards of Bayfield and Trinity having reached agreement on the Merger, Bayfield has terminated discussions with all other parties regarding a potential offer for the Company and, consequently, the Company is no longer in an offer period.


Xcite Energy (LON:XEL): Bentley Phase 1A successful, But Questions Remain - Successful completion of Bentley field pre-production well test programme materially de-risks the Bentley development project. Pre-production wells successfully tested full field development drilling, completion, production and export techniques. The 9/3b-7 and 7Z wells have been suspended for future use as producer wells during Phase 1B. Betley's 2P reserves are estimated at 116mm bbl. Phase 1B development expected to commence in 2013. While news that any North Sea operation has been completed successfully and safely is good news, in the longer-term it still leaves the question of operating costs unanswered. We have always maintained that this field will produce commercially in the first phase, we remain concerned the opex costs, both in absolute terms as a well as measured on a per barrel of oil produced basis, will rise to levels that make the operations non-commercial.  


Tullow Oil (LON:TLW): Enters Greenland - Tullow has picked up 40% non-operated interest in in Block 9 (Tooq license), Baffin Bay, NW Greenland. The license covers an area of 11,802 sq/km and 2014-2014 and the work programme includes the acquisition and processing of 3D seismic data; the fiscal terms of the transaction have not been disclosed.


Serica Energy (LON:SQZ), Premier Oil (LON:PMO), Faroe Petroleum (LON:FPM), Cairn Energy (LON:CNE): Ole! Drilling commences on Spaniards East -Commencement of drilling in North Sea block 15/21a to appraise Spaniard discovery is positive development. Spaniards lies close to the producing Scott field in the Central North Sea. The Spaniards discovery was made in 1989 by well 15/21a-38z which flowed at a rate of 2,660 barrels per day of 25 API oil on test.


Matra Petroleum (LON:MTA): An Amuse Bouche, But the Main Meal is Yet to Come -The Company has successfully completed acquisition of 100km of 2D seismic and 60sq km of 3D seismic survey on the Sokolovskoe field. We now wait for further updates on oil production from A-13 well on the Sokolovskoe field as the Company has planned to raise its output to 9,000 bbl in 2H'2012 from 2,892 bbl in 1H'12. With cash and equivalents of €5.8 mm as at 30 June 2012, the Company is fully funded for 2012 exploration and production program. The introduction of Maxim Barsky as a strategic investor is expected to bring considerable new project acquisition opportunities to the Company and will mean the Board can now consider a wider range of growth opportunities than those that were previously available to it. We remain positive on the stock and its outlook in the medium term and look forward to news on potential new projects. We are reiterating our BUY recommendation and 3.9p Target Price.


Quick facts: Archer Daniels Midland

Price: 43.9 USD

Market: NYSE
Market Cap: $24.49 billion

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