Savannah Resources (LON:SAV) – CORP: Mozambique update
Market Cap: £7.8m; Current Price: 2p
Agreement to extend the long stop date
Savannah Resources and Rio Tinto Group have agreed to extend the long stop date for fulfilment of the conditions precedent of the joint venture from 31/03/16 to 20/06/16, or such a date that may be agreed in writing by the parties.
NORTHLAND CAPITAL PARTNERS VIEW: The extension to the long stop date for the Mutamba/Jangamo joint venture between Savannah Resources and Rio Tinto Group is to allow the parties additional time to complete the approval process.
Mariana Resources (LON:MARL) – BUY*: Chile update
Market Cap: £16.7m; Current Price: 1.95p; Target Price: 4.8p
Drilling to commence at Doña Ines and Exploradora East
Mariana Resources is expecting drilling to commence at the Doña Ines Gold-Silver and Exploradora East Copper Prospects, located in Chile, in mid-April 2016 with the assay results likely to follow in May.
The initial drill programme will form part of the Phase 1 work commitment defined in the Option Agreement between Mariana Resources and Asset Chile that is earning into the project.
No change to forecasts, rating and price target.
NORTHLAND CAPITAL PARTNERS VIEW: The reverse circulation drill programme at Mariana Resources Doña Ines Prospect is looking to test the potential for high sulphidation gold-silver mineralisation while at Exploradora East, located 20km to the north, the joint venture partners are testing for a copper mineralisation. This programme is 100% funded by Mariana’s joint venture partner, Assets Chile, and as a result, there is no risk exposure to Mariana but the Company will benefit from any upside resulting from a discovery at either of the projects.
Edenville Energy (LON:EDL): Work programme for 2016
Market Cap: £3.3m; Current Price: 0.03p
Ramping up technical work and development financing discussions
Edenville Energy has provided an update on its work programme for Q216.
The programme is expected to included; sourcing and acquisition of suitable plant and machinery for the commencement of site earthworks (expected to commence in Q216), excavation and a testing of a bulk sample, commissioning of the remaining mining bankable feasibility study work, expansion of the 2014 Lahmeyer Power Plant Feasibility Study to include a 300MW thermal Power Plant, advance the power plant Environmental Impact Assessment and commission an airborne topographic survey to map both mine and power plant locations.
These tasks are expected to be completed by Q316, excluding the Power Plant EIA which has a longer lead time.
NORTHLAND CAPITAL PARTNERS VIEW: Edenville Energy was recently awarded its mining licence for its Rukwa Coal Deposit, located in Tanzania allowing the Company to ramp up its work programme for 2016. This extensive programme is being conducted in parallel with discussions with potential investors. Relative to its peer group Edenville looks good value at these levels.
Quarto Group (LON:QTR) – CORP*: Corporate news
Market Cap: £50.7m; Current Price: 257.5p;
Share sale, Board changes, LTIP
Quarto Group, the global illustrated book publisher and distributor group received notice that Non-executive Director Robert Morley sold 1,022,228 at 246p on 24 March and still retains an interest of 1.9% after the sale with the intention retaining the remaining holding in Quarto Group. Furthermore Mr Morley has notified that following the sale of shares he is stepping down as Non-executive Director with immediate effect. Finally, the performance conditions attaching to the award granted to Mr Marcus Leaver, CEO, on 22 May 2014 pursuant to the company’s performance share plan have been achieved and Mr Leaver’s nil-cost options over 666,666 shares become capable of being exercised at any time after 30 June 2016.
The business recently reported results to December 2015 where, revenue grew 6%YoY to US$182.2m, adjusted operating profit was US$17.2m, +8%YoY, PBT (adj.) grew 18%YoY to US$14.1m. Quarto reported EPS of US49.9c, +13%YoY and a proposed final dividend of 6.15p/share taking the full year dividend to 9.50p (+6%YoY). Net debt at year-end was US$59.5m, a 10%YoY reduction.
The business made good progress in 2015, delivering on strategic objectives of revenue growth, debt reduction and dividend growth, while improving operational efficiency in the business.
PHSC plc (LON:PHSC) – CORP: Board changes
Market Cap: £3.1m; Current Price: 24p
Change of Non-Executive Director and Company Secretary
PHSC announced a change to its Board of Directors with effect from 1 April 2016.
Mike Miller will leave the Board upon expiry of his current term of appointment on 31 March 2016. Mr Miller has served as a non-executive Director of the Company since its admission to trading on AIM in June 2005.
Lorraine Young will be appointed as non-executive director with effect from 1 April 2016.
Upon appointment as a non-executive director, Lorraine Young will resign as Company Secretary, a post she currently holds in a personal capacity. Lorraine Young Company Secretaries Limited will be appointed as Company Secretary and the statutory functions will be carried out by other members of her team.
NORTHLAND CAPITAL PARTNERS VIEW: Ms Young’s skill set will prove to be important to the Board. She graduated from Leeds University with a BSc (Hons) degree in Chemical Sciences and set up her own company secretarial practice following a successful career in the City. She is immediate past President and a Fellow of ICSA The Governance Institute. Her previous roles include Company Secretary at Brambles Industries plc and Head of the Group Secretariat at Standard Chartered PLC. These posts involved key roles in acquisitions and disposals, bid defence, overseas board visits, directors' induction and continuing professional development, complex international share plans, and promoting clear communication to shareholders and employees.
Premier African Minerals (LON:PREM) – SPECULATIVE BUY*: Circum update
Market Cap: £14m; Current Price: 0.7p
Optimised definitive feasibility study for the Danakil Potash Project.
Circum Minerals a company in which Premier African Minerals has a c. 2% interest has announced the results of an improved definitive feasibility study (DFS).
The Project has a post-tax NPV10 of US$2.1bn and post-tax IRR of 25.8%.
The development capital for Phase I at the project is estimated to be US$2.3bn with peak funding of US$1.8bn due to early revenue from initial production.
Morgan Stanley & Co. International have been appointed as the financial advisor to conduct a strategic review of the project.
NORTHLAND CAPITAL PARTNERS VIEW: Premier African Minerals interest in Circum Minerals clearly holds significant value for the company. The optimised DFS at Danakil has seen the development capital costs reduced by US$274m and operating coats reduced to US$3/t resulting in improved project returns.