Savannah Resources (LON:SAV) –CORP: Appointment of Nomad
Market Cap: £4.7m; Current Price: 1.9pFrom yesterday:
Savannah Resources appoints Northland Capital Partners as its Nominated advisor
NORTHLAND CAPITAL PARTNERS VIEW: Savannah Resources is multi-commodity exploration and development Company with heavy mineral sands assets in Mozambique and copper-gold interests in Oman. The copper projects, Blocks 4, 5 and 6, are located on the Semail Ophiolite Belt of Oman and have a total mineral resource estimate of 1.7mt at 2.2% Cu. Savannah holds a 65% interest in Block 5 and is currently earning 70% and 65% of Blocks 6 and 4, respectively. The heavy mineral sands project, Mutamba/Jangamo Project, is a joint venture with mining major Rio Tinto. The Project has a 65mt mineral resource estimate of 4.2%THM and an exploration target of 7-12bt at 3-4.5%THM.
Nektan (LON:NKTN): Trading Update
Market Cap: £34m; Current Price: 153p
Providing something Xstra
- Respin LLC, a JV between Nektan and Spin Games LLC in the US, is seeing significant interest from land based casino operators in the US market for its Extraspin wheels. The wheels are live in 12 casinos across California and Nevada with a total of 74 wheels now operational compared to just 25 in June. The product is having a positive impact on slot machine revenue where operators are seeing 30% increase. In addition to 74 wheels a further 22 casinos have shown interest which adds another 130 Xstraspin wheels taking the total to over 200 wheels. Finally the product has also been granted a patent, though no mention of which regions or territories this would cover.
- In addition to the strong growth of Xstraspin, real money gaming KPIs in Europe are showing high levels of month on month growth, where in August alone revenue in real money gaming was higher than the entire previous quarter on the back of more than a 70% increase in first time depositors.
- As flagged in a previous trading update, net gaming revenue for the financial year to June 2015 of c. £0.5m and an Adj. EBITDA loss of £5.5m is expected. Furthermore, consensus forecasts were recently downgraded for FY16 on the back of the previous update, however the business is clearly showing signs of significant improvement given today’s statement. Looking ahead to June 2016 consensus forecasts imply the business is still loss making.
NORTHLAND CAPITAL PARTNERS VIEW: The outlook looks positive on the back of securing c. £8m of funding, which should enable management to execute on its strategy and produce profitable growth and returns for shareholders over the longer term. Highly encouraging to see the Xstraspin product gaining significant traction and further significant rollout of the product will aid growth. Investors will be looking to see whether management is able to deliver on significant growth in the new financial which given today’s statement the business has made a good start to the new year. Final results (June) due mid-October.