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Northland Capital Partners View on the City - Botswana Diamonds; Sunrise Resources

Published: 10:25 12 Jul 2018 BST

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SECTOR: MINING

Botswana Diamonds (LON:BOD)

SECTOR – MINING

RATING – SPECULATIVE BUY*

MARKET CAP – £5.3m

CURRENT PRICE – 1.05p#

 

Year-end June

2016A

2017A

2018E

2019E†

 

Revenue (£m)

-

-

No forecasts provided

EBITDA (£m)

(0.3)

(0.3)

Adj. pre-tax Profit (£m)

(0.3)

(0.3)

Adj. EPS (p)

(0.11)

(0.09)

DPS (p)

-

-

Net Cash/(Debt) (£m)

0.3

(0.3)

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited Acts as Nomad and Broker to Botswana Diamonds and therefore this information should be viewed as a Marketing Communication.

 

Update on plans for H218 (note attached)

 

NORTHLAND VIEW

§  Under the Sunland Minerals Joint Venture, heavy mineral sampling on all 8 high-contrast geophysical anomalies returned kimberlite indicator minerals (KIMs) that are believed to have a local source. An examination of the KIMs is now underway to assess their diamond bearing potential.

§  Under the Vutomi Joint Venture, we are expecting the results from the analysis of kimberlite indicator minerals from samples taken from the Free State Kimberlites, to assess the potential for these kimberlites to be diamondiferous. The results from this programme are also expected in July-18.

§  Under the Maibwe Joint Venture, the liquidator of BCL Mine Group is preparing a prospectus for the potential sale of the diamond projects. The exact timeline for this process is unknown, but we would expect some developments during H218.

§  Other potential developments include the results of initial work on the recently acquired Mooikloof Project and further progress on the Zimbabwean joint venture with Vast Resources.

Botswana Diamonds has rapidly advanced its Thorney River Project over the past year. This work culminated in a Technical & Economic Study (TEE) highlighting a potential size of 1.2mt to 2mt at a grade between 46cpht and 74cpht, with average carat values between US$120/ct and US$220/ct. The TEE indicated positive economics could potentially be achieved using the top end of the grade and value ranges, assuming additional kimberlite volume of similar grade and value can be defined with further exploration. During H218, Botswana Diamonds is expected to deliver results from its earlier stage projects as it seeks to advance them up the value chain.

COMPANY DESCRIPTION

Botswana Diamonds is a diamond exploration company focused on the Kaapvaal Craton. The Company has projects in Botswana, South African and is moving into Zimbabwe.

 

 

BOTSWANA DIAMONDS (LON:BOD)

SECTOR – MINING

RATING – SPECULATIVE BUY*

MARKET CAP – £5.3m

CURRENT PRICE – 1.05p#

ANALYST – DR RYAN D. LONG

 

Year-end June

2016A

2017A

 

 

 

Revenue (£m)

-

-

No forecasts provided

EBITDA (£m)

(0.3)

(0.3)

Adj. pre-tax Profit (£m)

(0.3)

(0.3)

Adj. EPS (p)

(0.11)

(0.09)

DPS (p)

-

-

Net Cash/(Debt) (£m)

0.3

(0.3)

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and Broker to Botswana Diamonds and therefore this information should be viewed as a Marketing Communication.

 

From yesterday: Kalahari Desert Exploration Update

 

NORTHLAND VIEW

§  Botswana Diamonds has provided an update on its Sunland Minerals joint venture with Alrosa.

§  All eight geophysical anomalies returned good kimberlite indicator minerals (KIMs).

§  The grains include fresh chrome diopsides and olives, which imply a local source.

A positive update from the Sunland Minerals joint venture, where Botswana Diamonds is the operator. All eight of the high-contrast geophysical anomalies sampled in the Gope Region of the Kalahari Desert, returned kimberlitic indicator minerals (KIMs) The KIMs include: 41 garnets; 13 chromites; 139 ilmenites, 4 chrome diopsides and 70 olivines. Importantly the KIMs are thought to have a local source. The joint venture will now examine the mineral chemistry of the grains to determine the diamond bearing potential, if the results are positive we would expect the joint venture to commence an initial drill programme.

 

COMPANY DESCRIPTION

Botswana Diamonds is a diamond focused exploration company that has a joint venture with Alrosa in Botswana, an interest in the Maibwe discovery also in Botswana and an interest in 10 prospecting rights that contains 20 kimberlites, in South Africa.

 

 

 

SUNRISE RESOURCES (LON:SRES)

SECTOR – MINING

RATING – CORP*

MARKET CAP – £3.4m

CURRENT PRICE – 0.16p#

ANALYST – DR RYAN D. LONG

 

Year-end Sept

2016A

2017A

 

 

 

Revenue (£m)

-

-

No forecasts provided

EBITDA (£m)

(0.4)

(0.3)

Adj. pre-tax Profit (£m)

(0.4)

(0.3)

Adj. EPS (p)

(0.04)

(0.02)

DPS (p)

-

-

Net Cash/(Debt) (£m)

0.05

0.12

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited Acts as Nomad and Joint Broker to Sunrise Resources and therefore this information should be viewed as a Marketing Communication.

 

From Yesterday: VR Resources Update

 

NORTHLAND VIEW

§  VR Resources, a company in which Sunrise Resources holds an interest, has provided an update on the exploration programme completed at the Junction Gold Project.

§  At the Denio Summit Target, within Sunrises area of interest, a 1.5km long trend of copper-silver-gold bearing quartz veins and pegmatites has been defined. 86 soil samples were enriched in gold covering a 1km trend. A potassium depletion anomaly, indicative of alteration, has been defined over 800m and is coincident with magnetic, radiometric and soil anomalies.

The continued advancement of the Junction Gold Project is an interesting development for Sunrise Resources, particularly if VR Resources does complete its planned drill programme at the project, as this would lead to the issue of additional shares to Sunrise Resources.

 

COMPANY DESCRIPTION

Sunrise Resources is an exploration company focused on its 100%-owned CS Pozzolan-Perlite Project, located in Nevada

 

 

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