Mariana Resources (LON:MARL) – BUY*: FY15 results
Market Cap: £41m; Current Price: 3.5p; Target Price: 5.4p
From yesterday: Results largely in line with forecasts
Adj. LBT totalled £2m in FY15 up from £1.5m in FY14 but lower than our forecast of £2.2m.
Net cash totalled £1m in FY15 up from a net debt position of £0.6m in FY14 and ahead of our forecasts of £0.9m.
Post period end Mariana raised £6m through the issue of 330,000,001 shares at 1.82p.
Forecasts updated , rating and price target maintained.
NORTHLAND CAPITAL PARTNERS VIEW: 2015 was a transformational year for Mariana Resources with the discovery of the ultra-high grade Hot Maden Gold-Copper project in Turkey. Since the discovery of Hot Maden, Mariana and joint venture partner Lidya have rapidly advanced the project to an initial compliant mineral resource estimate of 3moz Au eq. t a grade of 11.2g/t Au eq. This resource estimate looks set to grow this year with subsequent drill programmes continuing to extend the mineralised zones, and the discovery of the high-grade gold mineralisation to the south.
Savannah Resources (LON:SAV) – CORP: New lithium project
Market Cap: £12m; Current Price: 3.2p
Acquires two lithium projects located in Finland
Savannah Resources has Reservation Applications over the Somero Project and registered a Prospecting Permit over the Erajarvi Project, both located in Finland.
Mapping by the Finnish Government highlighted the presence of lithium bearing minerals spodumene, leopidolite and petalite.
Savannah will begin data compilation, geological mapping, surface sampling to generate drill targets in 2016.
NORTHLAND CAPITAL PARTNERS VIEW: Savannah Resources has joined the increasing number of companies moving into the lithium space with the acquisition of two early stage hard rock lithium projects, located in Finland. Both of the projects have been shown to contain lithium bearing minerals but to date no geochemical sampling has been completed, giving Savannah the opportunity to initially advance the projects at a low cost. The rise in the lithium price from US$8/kg to over US$25/kg in the past 12 months has been driven by supply shortages and has led to significant interest in the space.