Mariana Resources (LON:MARL) – BUY*: Publication of NI43-101
Market Cap: £66.8m; Current Price: 54p; Target Price: 104p
Filling of NI43-101 report on SEDAR
Mariana Resources has filled its NI43-101 report for the high-grade Hot Maden Gold Copper Project on SEDAR.
PEA due for publication October.
NORTHLAND CAPITAL PARTNERS VIEW: Mariana Resources and its joint venture partner Lidya have defined c. 4moz Au eq. at a remarkable gold eq. grade of 10.2g/t Au eq. (based on Northland metal price assumptions). Mariana’s publication of its PEA in October will be a major milestone for the Company and will be followed up by a preliminary feasibility study in H117.
Edenville Energy (LON:EDL) – CORP: Interim results
Market Cap: £3.6m; Current Price: 0.6p
Continuing to evaluate opportunities caused by Tanzanian coal import ban
LBT totalled £446,801 in H116 up marginally from £421,819 in H115.
Net debt was reduced to £153,002 in H116 from £478,344 in H115.
NORTHLAND CAPITAL PARTNERS VIEW: During H116 Edenville Energy achieved a number of significant milestones the most important of which was the award of a mining licence over the Rukwa Coal Deposit. This development now appears even more significant with the Government of Tanzania’s directive to ban coal imports from the end of August 2016. As a result of this ban, Edenville is actively evaluating all opportunities that are arising, which could lead the Company pursue supply contracts with potential Tanzanian coal users who require regular reliable supplies giving the company a near-term source of cash flow to redeploy towards its focus of developing the Rukwa Coal to Power Plant.
PhotonStar (LON:PSL) – CROP: FY16 Interim Results
Market Cap: £3.5m; Current Price: 1.8p
FY16 Interims: revenue declined 22%, cost controls in place
PhotonStar LED Group, specialist in the design and manufacturer of smart LED lighting solutions, announced FY16 Interim Results for the six months to June 2016.
The key features of financial performance were:
Revenue declined 22%YoY to £2.532m (H115: £3.256m), with LED Lighting Fixtures revenue -21% to £1.592m, Halcyon and Light Engines revenue +6% to £0.263m, and Contract and Manufacturing -32% to £0.677m
Gross profit margin declined from 36.9% in H115 to 33.0%
Administrative expenses were reduced by 4% to £1.762m (H1 2015: £1.834m)
Adjusted EBITDA loss increased to £0.54m (H1 2015: loss £0.20m)
Pre-tax loss was £0.91m (H115: loss £0.59m)
At 30 June 2016, net debt was £0.68m (H115: £0.67m), with cash at £0.247m (Year-end FY15: £0.197m)
PhotonStar highlighted: paid-for trials for its Halcyon™ lighting and building systems management offering, which are expected to lead to larger roll out opportunities; an initial NHS hospital Phase 2 Halcyon order; participation in IBM’s February 2016 Interconnect building management systems and internet of things event; the grant of its secure commissioning patent.
The Company implemented restructuring measures from Q1 resulting in annualised cost savings which it estimates at £0.5m. On outlook, PhotonStar comments: “Trading continues to be difficult in the traditional LED and contract assembly businesses, with competitive price pressure remaining. However, further revenue improvement in all business units is being seen in the current period of Q3 2016, which together with the cost savings already in place, means that although trading is currently below market expectations when considering the results for the first half of 2016 on an annualised basis, we expect that the second half of 2016 will provide a positive contribution to the results for the full year”.
CEO James McKenzie commented: "In H1 2016, we made good progress in transitioning the Group into becoming a retrofit connected lighting and building management business. We have installed a number of trials in a variety of different industry sectors and have just received our first Phase 2 order from these trials. We are therefore very pleased with the significant progress in this area of the business. The traditional lighting business continues to be affected by significant competitor price reductions, resulting in a decline in revenues and increased pressure on profit margins. We have restructured the Group in order for this area of the business to be profitable at the lower revenue levels now experienced and to better deliver upon the growth opportunities afforded by Halcyon IoT projects and paid for trials which we hope will lead to the roll out of significant new contracts. Key technical demonstrations of halcyonPRO2TM and cloudBMSTM products at IBM interconnect 2016 point the way to the future of the group and its future growth."
Forecasts, price target and rating under review.
NORTHLAND CAPITAL PARTNERS VIEW: Pricing pressure in PhotonStar’s traditional LED market is an established feature which underlines the importance of its emphasis on development and repositioning as a provider of retrofit integrated lighting and building management systems. The Company has been proactive in establishing trials and participations which should serve to raise its profile, and also in addressing costs from the outset of 2016, following similar measures in FY15.
Thor Mining (LON:THR) – CORP: Molyhil update
Market Cap: £1.7m; Current Price: 0.03p
RAB drill programme appears a success and follow up drilling expected
Thor mining has completed its drill programme at Molyhil.
Using on site XRF analysis from two holes (16MAC013 and 16MAC014) at the Cattle Track target to the northwest of the existing Molyhil resource traces of tungsten have been detected (37ppm and 30ppm).
Broad zones of magnetite skarn similar to that which host the Molyhil deposit were intersected in the Think Big and Gap Track areas. At Think Big in hole 16MRAB056 18m of magnetite skarn was detected with 6m of 11% Fe and 1.2% Ti from 1.5m and 7.5m at 9% Fe and 1.2% Ti from 10.5m.
Sample assays are in progress.
NORTHLAND CAPITAL PARTNERS VIEW: When interpreting these results it’s important to understand the nature of this RAB drill programme and what it was designed to test for. RAB drilling is a quick and low-cost drilling method that allows the definition shallow geochemical anomalies that could indicated the presence of significant mineralisation at depth. Also important is that it allows areas that are not likely to have significant mineralisation to be defined, therefore reducing the time and money that is spent on unprospective areas. RAB drilling is used in areas of thicker overburden where conventional geochemical sampled may not be appropriate. As a result, to define success in a programme such as this we are not expecting significant intercepts of mineralisation, but rather traces of anomalous elements that can be used to further refine a target area for diamond or RC drilling. With this in mind, this RAB drill programme appears to be a significant success based on the XRF analysis, though we require assay confirmation before we can be certain. The XRF analysis has as shown the presence of anomalous tungsten that can be followed up with more closely spaced RAB drilling, at a low cost, to generate a refined target for follow up diamond or RC drilling.