Premier African Minerals (LON:PREM) – CORP: RHA and Zulu updates
Market Cap: £30m; Current Price: 0.775p
Finalisation of RHA underground mining contract and Zulu drill results
RHA Update
Shaft upgrades now completed and terms for underground mining contracts finalised with African Mining and Exploration (Afmine).
Afmine will deliver up to 16,000t of ore to the plant per month. Final terms also agreed to deliver 24,000t of ore from the open pit per month from March-17.
Implementation of the XRT sorter and allied plant improvements on schedule to be commissioned this quarter.
Afmine taking its second milestone payment in shares. 14,098,407 shares issued at a price of 0.7093p
Following the issue of shares the Company will have 3,982,742,765 shares in issue.
Zulu Update
Drilling at Zulu returned 1.54% Li2O over 15.63m from 25.14m (ZDD-3) and 1.46% Li2O over 5.6m from 73.61m (ZDD-15). Final Tantalum grades are still awaited.
Drill rig has not been demobilised from site and a new drilling programme has commenced with the aim of increasing the size of further defining the ore body.
NORTHLAND CAPITAL PARTNERS VIEW: With the completion of the shaft upgrades, signing of the underground mining contracts and agreement of the terms for production from the open pit Premier African Minerals is now on the verge of getting the RHA Tungsten Mine back up and running. The XRT sorter and associated plant upgrades are expected to be commissioned this quarter and should be the final developments before the operations can recommence commercial production. At Zulu, Prem continues to define significant intercepts on mineralisation and is opting to continue drilling to further increase the size of the mineralisation.
Fishing Republic plc (LON:FISH) – BUY*: Trading Update
Market Cap: £14.8m; Current Price: 39p; Target Price: 47p
Two further store openings planned before 1Q17
Good progress made in FY16 on the back of growing the store network and focusing on increasing sales from own websites, which are higher margin in nature compared to third party websites. Revenue is expected to show c. +40% YoY, which looks marginally ahead of our £5.7m.
Two stores were opened, one in Mildenhall just prior to the end of FY16 and one in Milton Keynes in January 2017. Two further store openings are planned prior to the end of the 1Q17, one store in Reading and one store in Ipswich. This should take the store footprint to 15 stores and importantly the two additional stores should be ready for the new fishing season in 2017. Furthermore, sales from own website sales was +132% YoY in FY16 and accounted for c. 40% of total online sales. This is very encouraging given the higher margin nature of own website sales.
No changes to forecasts at this stage, however the two new stores will require some upfront capital investment in order to be operational before the fishing season and these two stores will add to revenues in FY17.
Edenville Energy (LON:EDL) – CORP: Subscription
Market Cap: £7.5m; Current Price: 0.91p
Raises £2m in oversubscribed subscription
Edenville has announced an oversubscribed subscription to raise £2m, through the issue of 250,000,000 shares at a price of 0.8p with one-for-two warrants at an exercise price of 1.08p per warrant.
Following the subscription the Company will have 1,049,290,000 shares in issue.
NORTHLAND CAPITAL PARTNERS VIEW: Edenville will be using these funds to advance mine development by completing the purchase of a wash plant and crusher, acquire mining equipment, complete land compensation payments, build supporting infrastructure such as a weighbridge and provide the Company with general working capital.