Markets
Europe
The FTSE-100 finished yesterday's session 0.07% lower at 7,487.96, whilst the FTSE AIM All-Share index was up 0.02% at 1,039.24. In continental Europe, the CAC-40 finished 0.20 higher at 5,514.29 whilst the DAX was up 1.78% at 13,465.51.
Wall Street
In New York last night, the Dow Jones closed 0.25% higher at 23,435.01, the S&P 500 added 0.16% to end the day at 2,579.36, while the Nasdaq finished 0.17% lower at 6,716.53.
Asia
In Asian markets this morning, the Nikkei 225 was up 0.31% at 22,490.41 but the Hang Seng was down 0.18% at 28,543.25.
Oil
In early trade today, WTI was 0.09% lower at $54.25 per barrel and Brent was flat at $60.49 per barrel.
Headlines
Facebook ad revenue tops $10bn
Facebook profits soared in the third quarter as it brought in more than $10bn from advertising. The firm said profits were $4.7bn (£3.5bn) in the three months to the end of September, up 80% year-on-year. Chief executive Mark Zuckerberg told investors the firm's investments in security would "impact" profitability. US lawmakers are examining the possible use of the platform for Russian propaganda activities during the 2016 US presidential election. "We're serious about preventing abuse on our platforms," Mr Zuckerberg said. "Protecting our community is more important than maximising our profits." Facebook has faced two days of questioning in Washington, with politicians asking for increased disclosure around political ads, and asking how the firm polices false content. The firm said it was focused on protecting the "authenticity" of activity. The firm said it had 2.07bn monthly active users at the end of September, up 16% year-on-year. Shares in the firm jumped more than 1% in after-hours trade.
Company news
Cora Gold (LON:CORA, 15.00p) – Speculative Buy
Cora Gold announced a positive update on its Sanankoro gold project located in southern Mali. After a review of historical data compiled by Gold Fields and a lowering of the cut-off grade to 0.5g/t Au (from 1.0g/t Au), Cora has confirmed strong continuity and broad zones of gold mineralisation within potentially mineable widths. Management believes the lower cut-off grade is more realistic for the style of mineralisation and deep weathering profile observed at Sanankoro. Most notable historical drill intercepts using the revised cut-off grade were 25m grading 2.1g/t Au, 23m grading 2.3g/t Au, 27m grading 1.8g/t Au, 26m grading 1.7g/t Au and 22m grading 1.4g/t Au. Cora also noted the potential for shallow plunging higher-grade ore shoots from geological sections and the potential for repetition of mineralised structures parallel to the two known structures (referred to as Zone A and Zone B). Cora is planning a drill programme scheduled for late November 2017, initially targeting 4km strike length.
Our view: Today's announcement is positive news as it confirms the continuity of mineralisation at Sanankoro as well as defining broad zones of mineralisation. This sets the stage for the exploration programme due to commence in late November. We look forward to the start of the programme and exploration results thereafter. In the meantime, we have a Speculative Buy recommendation on the stock.
Beaufort Securities acts as corporate broker to Cora Gold plc
Lansdowne Oil & Gas (LON:LOGP, 0.98p) – Speculative Buy
Providence has announced the Irish authorities have consented to a change in interest over the Helvick Lease so that the MFDevCo farm in can begin. As a result Lansdowne will receive its 9% interest. The remaining participants are Providence Resources (56.25%, Operator), Atlantic Petroleum (16.50%), Sosina Exploration Limited (8.25%), and Marginal Field Development Company Limited (10.0%). MFDevCo will fully fund the work programme up until ministerial approval of a Helvick development plan. At that point MFDevCo will have 50% and Lansdowne 5%.
Our view: The assignment of a Lansdowne equity interest in Helvick has been a long time coming. As has ministerial approval of the MFDevCo interest and farm in. The key fact is that Lansdowne is free carried until Helvick has a Petroleum Lease and an approved development plan.
Beaufort Securities acts as corporate broker to Lansdowne Oil & Gas plc
Mineral & Financial Investments (LON:MAFL, 12.50p) - Speculative Buy
Mineral & Financial Investment announced today that TH Crestgate, a private investment company in which MAFL holds a 49% interest, has re-assayed a recent drill hole (LS-MS-02) and reported elevated indium and selenium contents. Assay results returned an average of 28g/t In over 80m including 23m grading 54.5g/t In and 6m grading 85.1g/t In. Selenium contents averaged 48.2g/t over 80m including 17m grading 104.1g/t Se and 8m grading 153g/t Se. Indium is considered a critical raw material used in the semi-conductor industry and is a minor component in zinc sulphide ores. The Lagoa Salgada project is a polymetallic deposit with a preliminary resource estimate of 4.5Mt grading 2.79% Pb, 2.85% Zn, 0.34% Cu, 53.43g/t Ag and 0.81g/t Au for the LS-1 Zone. TH Crestgate has an exploration target of between 8.0Mt and 10.0Mt on the LS-1 Zone. In addition to the LS-1 Zone, Lagoa Salgada hosts at least 16 other gravimetric anomalies which have yet to be fully tested.
Our view: The presence of indium and selenium at Lagoa Salgada is not surprising as these elements are usually associated with zinc sulphide minerals. We note that the presence of indium and selenium could potentially improve the economic value of the ore at Lagoa Salada as these by-products are recovered during zinc smelting. We look forward to further updates as well as the resource update for the LS-1 Zone. In the meantime, we maintain a Speculative Buy on the Stock.
Beaufort Securities acts as a corporate broker to Mineral & Financial Investments Limited
Nu-Oil & Gas (LON:NUOG, 0.98p) – Speculative Buy
Along with the Helvick Lease news (see Lansdowne Oil & Gas above), MFDEVCO (which Nu-Oil has a 50% interest in) has also been assigned 10% in the Dunmore Lease. Nu-Oil now has 10% in both Helvick and Dunmore and will farm-in to 50% in both, if it delivers Petroleum Leases and ministerial approved development plans. This of course assumes MFDevCo and its partners can demonstrate these fields can be economically developed using MFDevCo's low cost technologies.
Beaufort Securities acts as corporate broker to Nu-Oil & Gas plc