Markets
Europe
The FTSE-100 finished Friday's session 0.10% lower at 7,409.64, whilst the FTSE AIM All-Share index was up 0.03% at 1,029.78. In continental Europe, the CAC-40 finished 0.20% higher at 5,390.46 whilst the DAX was up 0.39% at 13,059.84.
Wall Street
In New York on Friday, the Dow Jones closed 0.14% higher at 23,557.99, the S&P-500 added 0.21% to end at 2,602.42 and the Nasdaq finished 0.32% firmer at 6,889.16.
Asia
In Asian markets this morning, the Nikkei 225 was down 0.38% at 22,465.55 and the Hang Seng was 0.59% lower at 29,688.81.
Oil
In early trade today, WTI crude was 0.44% lower at $58.69 per barrel and Brent was down 0.06% at $63.82.
Headlines
Citizens Advice warns about subscription contracts
Many consumers still struggle to get out of unwanted subscriptions such as gym memberships and online streaming services, according to Citizens Advice. Analysis of almost 600 problems reported to the service found that in just three months consumers paid an average of £160 on unwanted services. Sometimes, consumers misunderstood terms and conditions, while some companies made cancellation difficult. The head of the consumer group, Gillian Guy, said firms must "act responsibly". "Subscriptions are very easy to sign up to but can be difficult for consumers to get out of. We know people are wasting time and energy trying to cancel subscriptions while paying out of pocket," she said. Companies refused cancellations by asking for more notice - stretching to six months in some cases - or told people they needed to cancel through a specific route, such as phone or email. CA said one person who contacted the service said they tried to cancel a subscription after they were made redundant, and were asked for proof from their employer - including a P45. Most payments are thought to be through a Continuous Payment Authority, where companies can change the date or amount of a payment without giving advanced notice. Frequently, consumers said they felt it was unclear they were being signed up to a recurring payment or that the contract may continue on an auto renewal basis. Under the Consumer Rights Act 2015, businesses can't enforce terms on consumers that are unfair. CA's report marks the start of National Consumer Week.
Source: BBC News
Company news
KEFI Minerals (LON:KEFI, 4.12p) – Speculative Buy
KEFI has published a positive update about progress made on financing Tulu Kapi. Probably the most exciting detail is that "in response to soundings with potential investors the placing of the bonds is now expected to commence during Q1 2018", with drawdown shortly after. Based on this we expect construction at Tulu Kapi to commence as soon as 2Q18.
Our view: Bond issues such as Tulu Kapi's are unusual in the junior mining space, however we understand there is significant demand from Africa focused funds who are lacking product. Ethiopia is also a sought after investment destination due to (amongst other advantages) its strong growth rate. Construction is expected through 2018 and 2019 with first gold in 2H19. We reiterate our Speculative Buy recommendation.
Beaufort Securites acts as corporate broker to KEFI Minerals plc
Mineral & Financial Investments (LON:MAFL, 14.88p) – Speculative Buy
Mineral & Financial Investment announced today that TH Crestgate, a private investment company in which MAFL holds a 49% interest, has completed a DC resistivity survey (Mise-à-la Masse survey) on the LS-1 resources within the Lagoa Salgada project. The geophysical study provides indicative dimensions of the massive and semi-massive portion of the LS-1 resource of over 475m in length and 200m in width. The Company also announced results from LS-MS-05 which was suspended at 260m due technical difficulties after intersecting numerous faults. Mineralization was intersected including 1.21% Cu over one metre, 3.02% Zn over one metre, 59g/t Ag over one metre and 0.25g/t Au over one meter. Results from the geophysical survey suggests that mineralisation extends further to the East beyond the eastern fault intersected in LS-MS-05. 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 above geophysical survey results gives greater definition to the dimensions of the massive and semi-massive sulphides potions of the ore body. We also note that whilst drill hole LS-MS-05 did intersect mineralisation it is unlikely to significantly have a significant impact on the updated resource estimate, which is expected to be completed by the end of the year. That said, drill results will provide valuable information on the structural controls on mineralisation. We look to the updated resource estimate 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
Prospex Oil and Gas (LON:PXOG, 0.46p) – Speculative Buy
Prospex Oil and Gas has announced a shallow commercial gas discovery at its Bainet 1 well in Romania. The well discovered 8m of net gas pay in a 9m reservoir. Two intervals were perforated within the 8m section and a gas flow rate of 33,000 m3 per day or 1.17 million cubic feet per day was tested. 99% methane.
Our view: This is an excellent result. Bainet 1 is a valuable future producing well for Prospex plus it opens up the wider Suceava licence, which has multiple other shallow gas targets. Like Prospex's Italian investment, Suceava is also in a gas producing area with the associated midstream infrastructure and support services. Bainet 1 has been completed as a producer and attention can now turn to the ongoing well in Italy where Prospex has a 17% interest. All good news and should be positive for the shares this morning.
Beaufort Securites acts as corporate broker to Prospex Oil and Gas plc