SAVANNAH RESOURCES (LON:SAV)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £48.5m
CURRENT PRICE –5.5p#
ANALYST – BARRY GIBB
Year-end Dec
2016A
2017A
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
(1.8)
(2.8)
Adj. pre-tax Profit (£m)
(1.8)
(2.8)
Adj. EPS (p)
(0.46)
(0.53)
DPS (p)
-
-
Net Cash/(Debt) (£m)
0.7
1.2
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 provides commissioned research coverage to Savannah Resources and therefore this information should be viewed as a Marketing Communication.
Test work Confirms High Quality Saleable Quartz and Feldspar Co-Products
NORTHLAND VIEW
- Savannah Resources announces that its ongoing metallurgical test work has successfully produced saleable quartz and feldspar co-products through further processing of the tail material from its spodumene concentration process.
- Initial indications suggest that these co-products can be produced and market studies by First Test Minerals have been completed to provide some indicative pricings for the output. Having impurity levels below limits specified by commercial customers Feldspar (grades >12%), for example, has a potential price range of US$65-100/tonne, while Quartz (99.6% purity) stands at US$60-100/tonne, both significantly higher than the conservative values adopted in the recent Scoping Study. Management also suggest significant environmental benefit might accrue from the sale of such co-products, by reducing the potential size of the footprint of any potential operation.
- Follow-on work to further evaluate and develop this new output includes a trade-off study to confirm potential sale quantities, along with expected capital and operating costs, is currently underway. Preliminary discussions with offtake partners, which potentially could be found within the vibrant regional ceramics industry, to better understand the market size and customer needs is also underway.
With management expected to announce key programme milestones for its core lithium spodumene concentrates project at Mina do Barroso, ahead of completing a Feasibility Study in 2019, these finding demonstrate opportunity to identify additional revenue streams as it maximises operational value-added. With commissioning expected to result in first commercial concentrate production during H120, ongoing drilling continues to deliver excellent results both in terms of grades & widths. This introduces opportunity to further increase the Project’s Mineral Resource Estimate, while today’s news potentially also enhances the mine’s scheduling flexibility while prospectively adding to its overall LOM.
COMPANY DESCRIPTION
Savannah Resources is an energy metals group with copper-gold projects located in Oman, lithium projects in Portugal, and a operates a mineral sands project in Mozambique that is a JV with Rio Tinto
THOR MINING (LON:THR)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £10.0m
CURRENT PRICE – 1.4p#
ANALYST – 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.
Increased Mineral Resource Estimate at Pilot Mountain
NORTHLAND VIEW
- Thor Mining has announced that an upgraded and increased mineral resource estimate containing tungsten, copper and now zinc, for the Desert Scheelite deposit at Pilot Mountain in Nevada USA. Management consider Pilot Mountain’s overall resource inventory still has considerable growth potential via the Gun Metal and Good Hope deposits, as well as further potential upside at both Desert Scheelite and Garnet
- The Desert Scheelite mineral resource estimate now comprises 10.7 million tonnes at 0.26% WO₃, 19.38 gram/tonne Silver (Ag), 0.15% copper (Cu), & 0.38% zinc (Zn) (above cut-off grade of 0.15% WO3). The upgraded mineral resource estimate represents a 6.5% increase in the inventory for Desert Scheelite, now containing 27,700 tonnes of WO₃ (tungsten trioxide) 85% of which is in the Indicated category whose estimates for the first time includes zinc in the resource inventory, contributing an additional potential by-product stream to the project. The planned flotation recovery process, which is currently being trialed, is likely to recover zinc sulphides into concentrate with minimal additional cost.
While Thor’s ‘shovel ready’ Molyhil project presently remains the focus of investor interest, as it moves toward securing prospective project financiers/JV partners, this addition resource estimate further enhances vision and potential opportunity for Pilot Mountain. Piot Mountain hosts a large and valuable US tungsten resource, where there has been no primary production for some years despite being classified as a critical mineral by the US Department of the Interior. Complementing comprehensive updates across all the Company’s areas of operation, management is expected to further outline its ’next steps’ for Pilot Mountain in the coming weeks, together with an update in respect of Molyhil commercialisation, the Bonya project review exercise and the latest developments in respect of the Company's Kapunda copper project interest.
COMPANY DESCRIPTION
Thor Mining owns 100% of the Molyhil and Pilot Mountain Tungsten Projects plus an interest in the Kapunda Copper Project.
IMMEDIA (LON:IME)
SECTOR – TECHNOLOGY
RATING – BUY
MARKET CAP – £3.9m
CURRENT PRICE – 27p#
TARGET PRICE – 35p
Year-end Dec
2016A
2017A
2018E
2019E
Revenue (£’000)
2,610
3,549
4,850
5,335
EBITDA (£’000)
(83)
(513)
265
457
Adj. pre-tax Profit (£’000)
(201)
(693)
113
305
Adj. EPS (p)
(1.50)
(4.89)
0.73
1.97
DPS (p)
N.M.
N.M.
N.M.
N.M.
Net Cash/(Debt) (£’000)
115
47
301
793
P/E (x)
N.M.
N.M.
36.3
13.4
Dividend yield (%)
N.M.
N.M.
N.M.
N.M.
EV/EBITDA (x)
N.M.
N.M.
14.1
8.1
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Broker to Immedia plc and therefore this information should be viewed as a Marketing Communication
Corporate and customer digital media interaction for an online age
(Note attached)
NORTHLAND VIEW
- Immedia develops and manages interactive media, audio and video channels to enable its clients to engage with customers and improve branding and corporate communication, supported by analysis and consultancy services. It entered FY18 having reorganised and strengthened the Board, integrated AVC Media (acquired in Q316), launched its proprietary DreamStream X encrypted content distribution platform and reduced costs by £250,000. The Group recently added Nationwide Building Society to a client list which includes HSBC, Shell, Subway, BP, Superdrug, JD Sports, O2, BMW, IKEA and FIFA.
- For the six months to 30th June 2018 Immedia reported revenue of £2.016m, +9.3% Y/Y, and an EBITDA (adj) profit of £40k in contrast to a £104k loss a year earlier. The company highlighted revenue contribution from clients SUBWAY™ and JD Sports, and launch of the JD X mobile app offering at over 370 stores.
- The rise of social media has radically changed the ways in which brands interact with customers and the extent to which individuals are now empowered to opt out of targeted advertising, or are protected by measures such as GDPR. Immedia has responded by expanding the range of its interactive technology, and, with DreamStream X, upgraded its interactive audio and video offering for mobile and the web.
In 2017 Immedia restructured its proposition, from Board to technology platform and cost management. Following the integration of acquired AVC Media and client wins in 2018, H118 results demonstrate profitability and the opportunity for growth, underpinning our outlook for the full year.
COMPANY DESCRIPTION
Immedia is a technology and content specialist that enables brands to convert owned media channels, both digital and physical, into entertainment and customer engagement platforms. The Group offers a wide range of 'live' branded channels specifically to retail locations across the UK and Europe with an estimated listening audience of 8.5m/week.