Ferrex (LON:FRX) – CORP: Australian Gold Project
Market Cap: £4.8m; Current Price: 0.4p
Initial field work commences
- Ferrex has commenced initial fieldwork at its Australian Gold Project. A detailed land survey is underway to assess the existing drill holes and previous mining operations in order to plan an initial in-pit grade control drill programme before the end of December.
- Northland Capital partners view: Ferrex is rapidly advancing its Australian Gold Project towards production, targeted for Q216. This gold project has given the Company a low capital cost opportunity to generate modest cash flow (at the current gold price and foreign exchange rates) that can be deployed towards the advancement of the Nayega Manganese Project.
Crimson Tide (LON:TIDE): Contract update
Market Cap: £9.5m; Current Price: 2.125p
Accelerated implementation of significant mpro5 roll out
- Accelerated roll out of the large mpro5 roll out for one of the UK’s largest retailers that was announced in September and is estimated to be worth £1.1m over the 36 month term. The Company had initially anticipated the roll out would start at the end of this year with invoicing building H1 FY16 in line with the roll-out.
- Roll out has already started and has progressed at a faster rate and hence should be completed in a shorter timescale and by year end. Revenues under the contract will therefore accrue earlier than expected and 2016 will see a full year of subscription revenue.
Northland Capital partners view: Positive update and something of a rarity in the software industry - the faster than expected deployment of a project. The pace of the roll out has been dictated by the client and points to the benefits that the customer can see in the management of insurance claims and retail store safety. Accelerated deployment can potentially have some impact on margin as additional contractor resource is brought in but Crimson Tide will benefit from a full year of high margin subscription revenue.
DiamondCorp (LON:DCP): Placing
Market Cap: £24m; Current Price: 6.4p
From Yesterday: Completion of £4m placing
- DiamondCorp has raised £4m through the placing of 66,666,667 shares at a price of 6p per share.
- The shares will be issued in two tranches on the 09/12/15 and 08/01/16.
- Following the issue of both tranches the Company will have 442,763,408 shares in issue.
- Directors will be participating for a total of 1,827,000 shares.
- Forecasts, rating and price target remain under review.
Northland Capital partners view: The £4m raised by DiamondCorp, subject to GM, will be used for additional working capital and to fund the production ramp up following the delays resulting from the fractured ground conditions and delay with the conveyor belt installation, as well as funding the coupons on the Tiffany loans and UK bonds.
Premier African Minerals (LON:PREM) – SPECULATIVE BUY*: Loan update
Market Cap: £4m; Current Price: 0.5p
From yesterday: Conversion of loan note and issue of equity
- Premier African Minerals has received a notice of exercise from Darwin Capital Limited to convert in aggregate £567,500 loan notes into equity. Prem will issue 118,535,383 shares at a price of 0.47876p
- Prem has elected to meet the second tranche of US$50,000 due to NIEEF through the issue of 7,017,447 shares at a price of 0.47p.
Following the issue of shares the company will have 916,629,696 shares in issue.
Northland Capital partners view: The funds generated from these loan notes were used for additional working capital to support the expedited underground development of the RHA Tungsten Project. Prem is now focusing its efforts on the underground operations with ore from the 926 adit level continuing to be mined and stock-piled. Prem is also developing the 870 level and expects hoisting and ventilation installation for this level to be installed and operational by Q116. Prem expects RHA to be profitable from Q116.