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Strategic Natural Resources, Bridge Energy, Anglo American, Premier Oil and others feature in Fox-Davies Newsflash

Last updated: 11:13 26 Oct 2012 BST, First published: 10:13 26 Oct 2012 BST

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Mining News

African Barrick Gold PLC (LON:ABG) announced its third quarter production figures. The company produced 147,786oz of gold at a cash cost $965/oz. CEO Greg Hawkins said: "This has been a challenging quarter for ABG. We were expecting to see a step up in production levels, leading into the end of the year and 2013, but there have been production interruptions and issues across each of our sites.  We have seen the ramp up in grade at North Mara which is positive and expected to continue in Q4, but have been disrupted in our efforts to mine it at a normal rate given an increase in illegal mining operations. At the same time the production levels at Bulyanhulu and Buzwagi have been lower than planned. In light of this, we now believe that our full year production will be around 5-10% below the bottom of our previous range of 675,000 - 725,000 ounces of gold, at a total cash cost of US$900-950 per ounce."

Anglo American (LON:AAL) has announced that Cynthia Carroll has decided to step down as Chief Executive, with the Board's agreement. Cynthia will remain in her post until a successor has been appointed and an appropriate transition has taken place. Cynthia has been CEO for lot longer than most people expected when she originally joined to re-structure the business and streamlined a lot of the middle management creating a lot of bad blood in the process. Since then she has managed to transform the focus of the business although it has not always been a smooth ride. No details yet of a successor but our guess would be Alex Vanselow former CFO of BHP who retired last February.

Pathfinder Minerals (LON:PFP) has obtained an interdict in Mozambique court suspending the Resolutions of the EGM last December held by General Jacinto Veloso and Diogo Cavaco, so that the purported removal of the Company's board appointees is not effective. This follows the decision announced on 19 October 2012 that Pathfinder had obtained an English High Court judgment that it had validly acquired its 99.99% interest in Mozambican subsidiary Companhia Mineira de Naburi S.A. There was due to be a hearing scheduled to take place on 25 October 2012 in the Maputo Court to consider, as a preliminary issue, the question of the status of the shareholding in CMDN as a matter of Mozambique law. However upon arrival at the Maputo Court yesterday, representatives of the Company were told that that hearing had been adjourned to 6 December 2012, upon the application of the opposing party. These latest rulings are positive for the Company; however, with the postponement of the hearing yesterday it looks like there is still a lengthy and costly legal process ahead.

Strategic Natural Resources (LON:SNRP) has appointed Mark Rosslee as Finance Director of the Company. Mark is a Chartered Accountant in South Africa and has previously served on the Board of AIM quoted Central African Gold Plc. The move is unsurprising as Mark has been CFO SNR subsidiary Elitheni Coal since April 2012.

Oil & Gas News

Ascent Resources (LON:AST): Sharpening Up the Focus - News that ascent is in discussions with potential farminees for its Slovenian operation is no surprise, especially when you consider the spread of its assets, the limited resources (~$750m) and a previously announced strategic review. This move wold allow the Company to focus on its core areas where is has a better chance of "moving the needle."

Bridge Energy (LON:BRDG): OIL! - Bridge's announcement that it has made a discovery on its Garantiana well certainly bodes well for the outlook for the share price, that initial flows averaged ~4m bpd and the oil / water contact ("OWC") has not been intersected is also promising, but as they say, many a drop has been spilt b'twixt cup and mouth, i.e., an appraisal well testing the extent of the field and long term well test will be required before anybody can opine on the commerciality of the find. Nevertheless, this is what exploration is all about, creating value at the drill bit.

In this news:  

Discovery of a new oil accumulation by well 34/6-2S, known as the Garantiana Well

Triassic Lunde Formation

Norwegian North Sea PL554

20% license partner in PL554

Oil rate ~4m bpd (28/64" choke)

Sidetrack may be drilled (dependent on availability

Premier Oil (LON:PMO): Debt Swapout Deadline Extended - Premier has extended the offer period for the existing bondholders to swap out their 2014 instrument for a 2018 instrument. Given that it holds acceptances from 98% of the existing bondholders, and the remaining bondholders can be "swapped out" under the terms of the Class' terms and conditions, the Company seems to have cleared the way for the pending expense that will have to be borne during the development of Sea Lion. Following this news, we are reiterating our BUY Recommendation and 485p Target Price.3

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