Active Energy Group (LON:AEG) – CORP: Interim Results
Market Cap: £18.1m; Current Price: 2.75p
Progress in all divisions, international timber, forestry and renewables
Active Energy Group announced Interim Results for the six months to June 30th 2016. The Group noted: “strong growth delivered across entire international timber processing, forestry management and renewable energy business”.
Timber processing division AEG WoodFibre saw: “Excellent progress in increasing revenue, volumes and gross profit” resulting in:
11% increase in Group revenue to US$13.409m (H115: US$12.046m)
33%YoY increase in shipped volume to 137,568 tons
50% increase in Group gross profit to US$1.840m (H115: US$1.227m) reflecting demand from Turkey, improved purchasing conditions and price stability
The Company reported work underway to increase output capacity by 33% to approximately 4,000 tonnes per day by Q4 2016
Group operating profit (adj) was US$1.015m compared to H115 US$(0.569)m loss, underpinned by a reduction in admin costs to US$1.323m (H115: US$2.391m).
AEG reported progress at its Forestry management division AEG TimberLands towards becoming “a leading forestry management business”, with:
Progress towards finalisation of the Métis Settlement economic development and coal reduction initiative for Alberta and new agreement relating to the management, development and sustainable commercialisation of approximately 186,500 hectares of mature commercial forestry in Northern Ukraine
New Ukrainian MOU signed over significant tracts of forestry
Its third division, AEG CoalSwitch, saw progress towards commercialisation of its 'drop-in' biomass fuel coal replacement technology, with:
completion of a demonstration plant at Salt Lake City
product testing by commercial partners
progress towards financing and building the first commercial scale plant in North America
On outlook AEG noted that full year revenue is “anticipated to reflect a significant year-on-year increase”, with a post period-end placing which raised £2.05 million (gross) to fund expansion of core AEG WoodFibre operations. The Company said that a “Highly active development plan across all divisions” should result in “strong news flow”. CEO, Richard Spinks said, "We have over the past three years succeeded in establishing a multi-divisional business with huge potential. We have invested heavily in our WoodFibre business which is now yielding positive results, allowing us to further develop our other business opportunities at TimberLands and CoalSwitch, highlighted by the significant improvement in our financial performance, and continuing investment into these new business areas. With additional capital raised in August, we are executing our investment plan which will see a further increase in capacity, output and most importantly revenue for the full year 2016. This remains primarily from the WoodFibre division in Ukraine and will be augmented when AEG CoalSwitch and TimberLands begin to operate”.
NORTHLAND CAPITAL PARTNERS VIEW: Active Energy reported tangible progress in its core Ukrainian Woodfibre process operation and capacity expansion underway, which remains the mainstay of revenue growth in 2016. At the same time there is evidence of steps towards commercialisation of its coal replacement biomass-based solution, and access to additional forestry reserves in Canada and in Ukraine.
Savannah Resources (LON:SAV) – CORP: Placing and subscription
Market Cap: £15m; Current Price: 3.95p
Raises £1.42m
Savannah Resources has raised £1.42m through the placing of 28,208,973 shares and subscriptions for 12,500,000 shares at a price of 3.5p.
The Company also has letter of intent for an additional £0.83m from Directors and related parties once the Company has exited its current closed period.
Following the Completion of the placing the Company will have 425,869,714 shares in issue.
NORTHLAND CAPITAL PARTNERS VIEW: A sizable fundraise for Savannah Resources that was oversubscribed and has the potential for additional funds from Directors and related parties once the Company exits its closed period. The funds will be used to support the development towards production of Savannahs copper projects in Oman, pursue its other projects in Mozambique and Finland, and for working capital.
Premier African Minerals (LON:PREM) – CORP: RHA update
Market Cap: £8m; Current Price: 0.425p
From Friday: New mesh inserts from the crushing screens installed.
The new mesh inserts for the RHA crushing screens have been installed and commissioned.
A further update will be included in the Chairman’s Statement from the interims results due to be released 27/09/16.
A review of the immediately available underground resources to support underground mining will be provided before the end of September.
Petrel Resources (LON:PET) – CORP: Interims
Market Cap: £7m; Current Price: 7p
LBT reduces and early signs from LO16/24 are promising
LBT during H116 was €106,000 down from €147,000 in H115.
Net cash totalled €592,000 in H116 down from €885,000 in H115.
NORTHLAND CAPITAL PARTNERS VIEW: During the first half of the year Petrel Resources focused its activities in Irish Atlantic Porcupine Basin. Petrel has a 15% carried interest in two Frontier Exploration Licences (FEL3/14 and FEL4/14) that are operated by Woodside Energy. Processing of the recently collected 3D seismic data is underway and the results are expected in early January, with the interpretation likely to be completed by the middle of next year. Petrel also owns 100% of two Licensing options (LO16/24 and LO16/25) and work is currently underway on LO16/24 with the acquisition of the relevant seismic and well data that is not currently in Petrels data base. The Company notes the presence of pinch-outs mapped in area 35/1 that extend into the 35/2 area, with the source rock already established and the sands known to be excellent reservoirs, the presence of these traps is encouraging.