Management Resource Solutions (LON:MRS) – CORP: Contract & Trading
Market Cap: £3.2m; Current Price: 9.75p
From yesterday: Significant contract win
MRS announced the award of a new significant contract win to dismantle and demolish the Lyondell Basel Poly Plant refinery, which is in Clyde, New South Wales, Australia. Management alluded to a 6-9 month project which was outside of the scope of usual activity of the business in the outlook statement at the time of the interim results on 15 March 2016.
The contract will commence immediately and it is anticipated that the dismantling of the plant will take seven months with a further two months to complete the decommissioning phase of the project. The contract has an initial value of A$6m and under the terms MRS will receive an initial payment of A$0.9m followed by monthly progress payments based on key milestones being met during the project. MRS will be responsible for expenses and liabilities which are incurred whilst executing the Contract.
Furthermore, current trading for the year remains in line with management expectations and the company is in advanced negotiations on a number of other tenders, where further updates will be made at the appropriate time.
NORTHLAND CAPITAL PARTNERS VIEW: It is a good contract win for MRS which demonstrates the ability to win tenders in areas the business was not previously exposed to. As previously alluded to the acquisition of Bachmann not only provides additional scale to the business but also provides the opportunity to tender for larger more diversified projects as displayed with the plant refinery demo project.
Edenville Energy (LON:EDL) – CORP: Power Project update
Market Cap: £2.9m; Current Price: 0.03p
Power plant developers on site this weekend
Edenville Energy has established a new Tanzanian subsidiary company, Edenville Power Tanzania (EPTL) to advance the power station project.
The project concept note for the power plant development has been reviewed and accepted by Tanesco.
The Environmental Impact Assessment (EIA) registration and Project Brief have been submitted
The Company is in discussions with several power plant developers that could fund the pre-construction costs, as well as, part of the construction costs. A site visit is taking place with two of the groups
NORTHLAND CAPITAL PARTNERS VIEW: Edenville Energy has made significant progress in advancing the Rukwa Coal to Power Project, located in Tanzania. The next steps for the Company as it moves towards commercialisation is the submission of the EIA and all eyes will be on the financing discussions that appear to be making good progress with an imminent site visit.
Clontarf Energy (LON:CLON) – CORP: FY15 results
Market Cap: £1m; Current Price: 0.2p
LBT decreases to £0.2m
LBT decreased to £204,537in FY15 from £274,196 in FY14.
Net debt totalled £632,905 in FY15 up from £393,308 in FY14.
NORTHLAND CAPITAL PARTNERS VIEW: In Ghana, Clontarf has submitted a proposal on an alternative deep water block as a potential resolution the court proceedings on its Tano 2A Block. These applications were lodged in 2016 and are being examined by the authorities. Significant historic work has been completed at the Block including 3D seismic and four wells defining the primary target on this Block is the Turancian reservoir section. Clontarf will commence a detailed analysis of the historic data once the title is granted, signed and ratified.
Keras Resources (LON:KRS) – CORP: First payment received
Market Cap: £15.5m; Current Price: 1.2p
Keras receives first payment from the ore processed at Grants Patch
Keras Resources has received the first payment for the gold ore processed at the Paddington Mill.
NORTHLAND CAPITAL PARTNERS VIEW: Keras Resources has received the payment is for ore extracted from the Anomaly 22 deposit, located on the Grants Patch Gold Tribute lease area.
W Resources (LON:WRES) – BUY*: FY15 results
Market Cap: £17.8m; Current Price: 0.46p; Target Price: 1p
LBT remains level at £0.6m
LBT remained level at £0.6m in FY15 from FY16 but below our forecasts of £0.7m.
Net debt reduced to £0.3m in FY15 compared to £2.1m in FY14 and a significant improvement on our forecasts of £2.8m.
Forecasts updated, rating and price target maintained.
NORTHLAND CAPITAL PARTNERS VIEW: W Resources made large strides towards the development of the hard rock La Parrilla Tungsten project in 2015 and despite the large amount of work involved the LBT remained relatively low. 2016 will see the completion of the V2 feasibility study for the project and maiden hard rock production for the Company.