THOR MINING (LON:THR)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £10.1m
CURRENT PRICE – 1.55p#
ANALYST – DR RYAN D. LONG
BARRY GIBB
Year-end June
2017A
2018A
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
(1.3)
(1.3)
Adj. pre-tax Profit (£m)
(1.3)
(1.2)
Adj. EPS (p)
(0.4)
(0.2)
DPS (p)
-
-
Net Cash/(Debt) (£m)
(0.1)
1.0
P/E (x)
n.a.
n.a.
Dividend yield (%)
-
-
EV/EBITDA (x)
n.a.
n.a.
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Joint Broker and provides commissioned research coverage to Thor Mining and therefore this information should be viewed as a Marketing Communication.
From Friday: FY18 Results as Expected, Economic Studies being Advanced
NORTHLAND VIEW
§ LBT in FY18 decreased to £1.249m from £(1.253)m in FY17.
§ Net cash of £1m in FY18 compared with net debt of £0.1m in FY18.
Thor Mining’s FY18 results reflect that the Company has been focused on advancing economic studies at its two tungsten projects, while also evaluating other opportunities such as the Kapunda Copper Project located in Australia. Thor has now completed its updated Definitive Feasibility Study at the Molyhil Tungsten Project, similarly located in Australia, and is seeking to secure the finance required to move the project into production in the early part of 2019. Thor Mining has also completed a Scoping Study at its Pilot Mountain Tungsten Project, located in Nevada, and plans to advance the project to Pre-Feasibility Study stage.
COMPANY DESCRIPTION
Thor Mining owns 100% of the Molyhil and Pilot Mountain Tungsten Projects, located in Australia and the USA, respectively. The Company is also earning up to a 60% interest in the Kapunda Copper Project and has a material interest in USA Lithium, a private business.
SECTOR – MINING
RATING – CORP*
MARKET CAP – £4.5m
CURRENT PRICE – 0.29p#
ANALYST – BARRY GIBB
Year-end Dec
2016A
2017A
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
(3.2)
(1.2)
Adj. pre-tax Profit (£m)
(3.2)
(1.2)
Adj. EPS (p)
(0.5)
(0.1)
DPS (p)
-
-
Net Cash/(Debt) (£m)
0.1
0.8
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 Edenville Energy and therefore this information should be viewed as a Marketing Communication.
Interim Results Report First Revenues
NORTHLAND VIEW
§ Edenville Energy announced unaudited interim results for the six months ended 30 June 2018. Its newly constructed Rukwa Coal Project entered its commercial production phase in mid-April following previous trial shipments. Reporting sales revenue for the first time of £59,310, Edenville produced a gross profit of £4,467. Losses after taxation amounted to £544,959 (H117 £551,337), with net assets at period-end totaling £7,568,436 (30 June 2017 £6,805,216). The total comprehensive loss for the period was £387,412 (H117 £841,877), which included a gain of £157,457 (H117 loss of £290,540) arising from the translation of the Tanzanian subsidiary accounts from US Dollars to Sterling.
§ During the first half, commercial mining and wash plant operation commenced the full production phase with output of a variety of sized coal products. Revenues during the period 1 January 2018 to 16 April 2018 were, however, off-set against development costs as the mine was being tested to ensure it functioned as intended. From 17 April 2018 to 30 June 2018 the mine produced 5,348 tonnes of washed coal and 7,004 tonnes of fine coal. Of the 5,348 tonnes of washed coal, 2,314 tonnes were sold.
§ From half-year end to 17 September, 20,945 tonnes of Run of Mine ("ROM") coal was processed, producing 6,186 tonnes of washed coal and 9,523 tonnes of fine coal. Of the 6,186 tonnes of washed coal, 4,947 tonnes were shipped. As production of washed coal increases the unit sales cost are expected to progressively fall. A two year contract for coal supply of 4,000 tonnes per month was also secured with plant upgrade tasks now nearing completion.
While revenues reported for the first six months were modest, Edenville’s business plan remains intact. The extension of its MOU with Sinohydro, a major Chinese EPC contractor, reported during the period was particularly important news, reflecting the significance of the Worlds Banks US$455m funding of the ZTK power line. Edenville is now well placed to leverage its development by building a mine mouth power plant that can feed into the power infrastructure, thereby recognising the true potential of its Rukwa Coal-to-Power Project.
COMPANY DESCRIPTION
Edenville Energy’s Rukwa Coal Project commences commercial production as its further advances its Coal-to-Power Project.