Armadale Capital (LON:ACP)
Ongoing exploration on the Mpokoto gold project in the Democratic Republic of Congo by Armadale Capital (ACP), despite the heavy rain, has resulted in 53 holes completed to date in an augur drilling program. Panned spoils of the soils have yielded gold, a good indication that the mineralised corridors do in fact continue to the north-west and south-east of the current compliant resource. Once completed the augur program will be tightened up on its spacing to finalise the best drill locations for a 2,500m diamond drill program.
No additional news as yet on the mine financing from Africa Mining Contracting Services.
We retain our SPEC BUY rating and 12.3p price target.
Centamin (LON:CEY)
An encouraging set of Q1 results for Centamin (CEY) today, with gold production up by 6% QoQ and 16% YoY to 125,268 ounces. Cash costs came in at US$603/oz while AISC came in sub US$800/oz at US$758/oz. Plant throughput also rose to 2.88Mt while the open pit moved a record 15.2Mt. Margins have improved quite a bit as well with a 42% improvement QoQ to EBITDA of US$67.5m.
The company has re-iterated guidance for the year for 470,000ozs produced at a cash cost of US$680/oz. This is certainly achievable if these current production rates and metrics can be sustained. This remains the focus of the company for the current year and we believe CEY will achieve it.