Altona Energy (ANR.L) – CORP: JV update
Market Cap: £3.6m; Current Price: 0.4p
From yesterday: Project on hold until PEL is acquired or granted
Following recent discussions with the South Australian Government, the Arckaringa Coal Chemical Joint Venture (the JV) have been informed that it will also need a Petroleum Exploration Licences (PEL) in addition to its existing Exploration Licences before it can commence test drilling at Arckaringa.
The PEL requires the higher levels of regulation and the joint venture company is reviewing the requirements.
The three Exploration Licences that relate to the Arckaringa Project share a partial overlap with PELA604 an application owned by Linc Energy that is currently in voluntary administration. The South Australian Government has informed Altona that it may need to acquire PELA604 before it can commence work at the Project.
Altona understands that the assets of Linc Energy are to be acquired by an unknown third party. The JV Company is currently trying to establish the identity of the purchaser and plans to enter negotiations to acquire the PEL.
Altona expects this process could take several months but do not know definitively. Should the JV Company be unsuccessful it may re-enter discussions with the Governments Energy Department with a view to establishing a new licence for this shared area.
Altona’s joint venture partners, Sino-Aus Energy Group and Wintask Group, will discuss possible variations to the JV agreement in due course. The partners have agreed that the Sino-Aus will not proceed with the subscription for 100m shares at 75p to raise £750,000 and will instead re-negotiate the terms and timing of the subscription.
The partners have also agreed that the project should be postponed until the PEL is granted. Sino-Aus will be refunded the first tranche payment of A$5.4m less what has already been spent. Sino-Aus will deposit the funds into a short term investment instrument to allow a return to be generated. Wintask will leave its first tranche payment of A$0.6m in the JV.
The reports by Parsons Brinkerhoff have been completed and once the PEL issues are resolved the project will be able to be advanced.
NORTHLAND CAPITAL PARTNERS VIEW: Disappointing developments for Altona Energy that will cause a delay to the advancement of the Arckaringa Coal Chemical Joint Venture. While the process of applying for a Petroleum Exploration Licence is fairly standard, the added complication of the partial overlap with Linc Energy’s PEL will make the process more problematic and extend the time frame for completion. The JV agreement may now be amended as will Sino-Aus’ subscription in Altona all of which adds to the uncertainty regarding the time line for advancement. Altona and its joint venture partners are now seeking to establish who the purchaser of Linc Energy is and to try to acquire the PEL from them.
Thor Mining (LON:THR) – CORP: Quarterly update
Market Cap: £1.7m; Current Price: 0.03p
Continues to examine potential acquisitions
Thor Mining is planning a drill programme to test a magnetic anomaly located adjacent to Molyhil.
During much of 2016 Thor has been assessing potential acquisitions. Several opportunities that offer near-term development with attractive capital and operating costs structures are being further evaluated.
At the end of the quarter the Company had cash of A$307,000.
NORTHLAND CAPITAL PARTNERS VIEW: Thor Mining is continuing to assess a number of potential acquisitions and we look forward to further news in due course.
Holders Technology (LON:HDT) – CORP: Interim Results
Market Cap: £1.2m; Current Price: 28.5p
Interim revenue up 3.3%, losses reduced, cash improved
Holders Technology, specialty laminates and materials supplier for printed circuit board manufacturers, and LED solutions provider to the lighting and industrial markets, announced Interim results for the six month period to 31 May 2016
The company reported “a small improvement” in earnings, pre-exceptional items. Total revenue rose 3.3% to £5.662m (2015: £5.479m). Loss before restructuring items was reduced to £(68,000) compared to a loss of £(95,000) a year earlier. Restructuring costs totalled £103,000 (none in H115) comprising employee termination costs and legal costs arising from an aborted transaction. The reported loss at Pre-Tax level was £(171,000) compared to a H115 loss of £(95,000)
Holders reported H116 PCB divisional revenue down 3.2% from £4.146m in H115 to £4.014m. The company reports that its German PCB division “experienced somewhat improved customer demand and achieved an increase in revenues”, whereas “revenues from our smaller U.K. operation were adversely impacted by the discontinued distribution contract announced previously”. PCB revenue was also impacted by the disposal in December 2015 of its interest in an Indian PCB joint venture
Revenue from LED operations grew 23.6%, from £1.333m to £1.648m, with margin improvement from 31.1% to 32.3%. The company noted a contribution to growth from new products in its Components Division. Despite a 13% increase overheads due to additional sales, the level of losses in LED activities was reduced to £(67,000) from £(109,000) a year earlier
The company generated cash from operations of £0.293m (pre-tax), resulting in an improvement in period-end cash position of £0.726m compared to £0.443m at 30th November 2015 (H115: £0.511m). There is no debt
Holders Executive Chairman, Rudolf W. Weinreich, commented: “Results from both the PCB and LED divisions showed some progress. Our PCB divisions have further reduced their costs in order to remain competitive in challenging markets while our LED divisions have continued to grow their revenues and improve margins. We continue to evaluate all possible routes to return the Group to satisfactory profitability”