SUNRISE RESOURCES (LON:SRES)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £3.8m
CURRENT PRICE – 0.15p#
ANALYST – BARRY GIBB
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 COMPLETES SURVEY, PREPARES FOR DRILLING
NORTHLAND VIEW
- Sunrise Resources yesterday afternoon provided an update on the Junction Copper-Silver-Gold Project in Nevada, USA, in which it holds an interest. Its joint venture partner, VR Resources announced that field preparations are now underway for a targeted, first pass drill programme on the mineralization.
- The company has received final approvals for required drill permits, a drill contract has been executed, and start-up is planned for later this month. Highway access to the property, and ranch roads throughout the property facilitate cost-effective exploration at Junction. This drill programme is the result of more or less continuous surface exploration at Junction since April, 2018.
- VR reported that the copper-silver mineralization at Junction has been sampled at surface along a 6kmtrend, in coarse-grained quartz-feldspar granite dykes hosted within a sheared, polyphase cretaceous batholith and that bornite-chalcopyrite copper sulfide aggregates contain micro-inclusions of silver, resulting in a nearly 1:1 correlation of copper and silver in assay data from more than 100 samples. VR stated that the correlation does not vary along the 6kmtrend, nor does it vary depending on the copper grade of a sample, or the ratio of copper sulfide versus oxide.
- VR's two drill targets include the Denio Summit Target at the western end of the copper-silver trend, which occurs wholly within the Sunrise Area of Interest. It reported a series of mineralized quartz-feldspar granite dykes and gold-bearing quartz veins occur at surface along a 1.5kmtrend, and a broad soil anomaly with copper, silver, gold and tungsten enriched in multiple stations on multiple lines underlies the northern 1,000m of the surface trend of showings
While Sunrise’s focus remains firmly on developing its CS Pozzolan-Perlite Project in Nevada, USA, this news serves as a useful reminder of the value that remains within its wider portfolio of non-core drill stage exploration projects. Should VR commence its drill programme, it is an event that would trigger a further issue of shares to Sunrise, which also retains a 3% royalty payable on any future production.
COMPANY DESCRIPTION
Sunrise Resources is an exploration company focused on its 100%-owned CS Pozzolan-Perlite Project, located in Nevada
SECTOR – MINING
RATING – CORP*
MARKET CAP – £2.9m
CURRENT PRICE – 0.19p#
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.
Latest Tanesco Announcement – Tender Process Resumes
NORTHLAND VIEW
- Edenville Energy commented on the latest newspaper announcement and subsequent Invitation for Qualification (IFQ) by Tanzania Electricity Supply Company (‘Tanesco’) which refers to specific tenders in relation to its national power supply.
- Having been cancelled on 2 November 2018, the tender process for coal fired power generation has now restarted, according to announcements in the Tanzanian press and the subsequent release of documents by Tanesco.
- The Edenville group of companies has been invited to either retain their original application which was opened and accepted at the Tanesco headquarters on 19 October 2018 or, alternatively to submit a new application by the morning of 7 December 2018 in line with the requirements outlined in the Tanesco Request for Qualification (RFQ) documents. Edenville’s Board noted its understanding that at this point the application documents have not been subject to material change.
It is encouraging that the tender process has now resumed after a short delay. Since last Friday’s announcement, of course, Edenville has entered a Conditional Convertible Loan facility to make up to US$2.75m available to the Company for its immediate working capital and expansion needs, which was seen as the Company’s best funding option given the uncertainty that had suddenly been created by Tanesco’s cancellation of tenders. Now that the process appears to be set to return to its original schedule, however, it is positioned to take advantage of the Power Master Plan that should be progressively rolled out by the Government of Tanzania in order to provide long-term power generation and transmission across the country. Edenville presently has regular supply agreements for in excess of 8,000 tonnes per month and is busy implementing site expansion in anticipation of confirming yet further medium/longer-term supply contracts, for which the project with Tanesco now appears set to play an important part.
COMPANY DESCRIPTION
Edenville Energy is moving the Rukwa Coal Project towards near-term production and advancing its Coal to Power Project.