Wishbone Gold acquires option to own tenements adjacent to Havieron and Telfer

Jamie Gordon
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Wishbone Gold acquires option to own tenements adjacent to Havieron and Telfer
Precious metals mining company, Wishbone Gold (AIM:WSBN), added to the list of recent developments coming out of the Patersons Range region of Western Australia, by informing investors that it has signed an exclusive 45 day option to acquire 100% ownership of three exploration tenements. The tenements make up 67 square kilometres combined, with the largest of the exploration licences, EL 45/5297 (57.4km sq), sitting just 13km southwest of Newcrest Mining’s (ASX:NCM) Telfer Gold Mine. The second and third, smaller licences, EL’s 45/5408 (6.38km sq) and 45/5409 (3.19km sq), are located just 15km southeast of Telfer, and some 25km southwest of Newcrest and Greatland Gold’s (AIM:GGP) celebrated Havieron gold discovery.

Wishbone says it has agreed to pay vendors an option payment of £50,000, with the company already having commenced it due diligence.

Should it choose to acquire the projects, it will offer the three vendors an additional £183,333 in cash, issue 11,111,111 new ordinary shares at 3.30p, and 5,555,555 warrants to subscribe for one new ordinary share in the capital of the company.

Wishbone excited to take a slice of the Paterson pie

Speaking on the acquisition option, company Chairman, Richard Poulden, commented:

“The Paterson Ranges host some of the most exciting gold and copper mines and discoveries in the Western Australian Pilbara region made in recent years. The best acreage is tightly held and thus to secure a deal on these assets is a very significant development for Wishbone.”

“As previously advised, Wishbone already has advanced exploration assets in Australia and therefore has the necessary geological consultants in place to progress all exploration programmes. I look forward to updating the market over the coming weeks on the progress of this very significant transaction for the Company.”

Investor notes

Having started with a 19% rally, the Wishbone Gold share price has slightly relaxed, but still rallying by 15.94% or 0.55p, to 4.00p a share 05/10/20 11:45 GMT. The Marketbeat community had a 57.92% ‘Underperform’ rating on the stock, prior to today’s update. Its current price is well above its year-to-date nadir of 1.13p a share, but slightly short of its recent high of 4.35p.

FTSE 100 recovers as Trump’s health improves

Safiya Bashir
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FTSE 100 recovers as Trump’s health improves
The FTSE 100 opened higher on Monday morning on news that Donald Trump’s health was improving. The FTSE 100 opened 1.2% on opening whilst the FTSE 250 rose 0.62%, despite Cineworld shares plummeting 57%. News that the US President’s health was improving led to the blue-chip index to climb on Monday, easing the global uncertainty as the news of his illness broke. Connor Campbell from Spreadex commented: “Regardless of its accuracy, word that Donald Trump is ‘improving’, and could be back in the White House this Monday, allowed the markets to rebound as the session got underway.

“It’s hard to ascertain what state the President is actually in, given his history of misinformation and obfuscation on every topic, but especially his own health. Nevertheless, another video message on Sunday afternoon, and an irresponsible drive-by appearance to wave at MAGA fans outside the Walter Reed medical center, seems to have backed-up the shaky idea that Trump is doing better.

“It was how investors took it, at least, with Europe uniform in its green open. The FTSE climbed back across 5900, and neared 5950, as it jumped 0.8%, with the DAX edging towards 12750 with a 0.6% increase, and the CAC a touch below 4850 following a 0.7% rise,” he added.

In Asia, Japan’s Nikkei 225 grew 1.23%. Hong Kong’s Hang Seng index increased by 1.45%.  

Wizz Air: passenger numbers fall 60%

Safiya Bashir
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Wizz Air: passenger numbers fall 60%
Wizz Air flew just 1.56m passengers last month, down 20% from August. As quarantine rules are impacting airlines, Wizz Air reported a 60% drop in passengers compared the September previously. The airline flew almost four million passengers in September 2019, compared to 1.56 million in September 2020. Despite the new quarantine rules still in effect, the airline said it is continuing to expand across Europe. Other airlines are also feeling the effects of the pandemic and limited travel. Ryanair flew 5.1 million passengers in September, compared to the 14.1 million the same period a year ago. A spokesperson for the airline said: “However, as customer confidence is damaged by government mismanagement of Covid travel policies, many Ryanair customers are unable to travel for business or urgent family reasons without being subjected to defective 14-day quarantines.” Airlines have called on the government to make a change to the current quarantine rules and introduce airport testing.    

Car sales: registrations fall to record low in September

Safiya Bashir
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Car sales: registrations fall to record low in September
New figures from the Society of Motor Manufacturers and Traders (SMMT) have revealed new car registrations to fall to the lowest level since records began. Last month saw 328,041 cars registered, which is a 4.4% year-on-year decline and the lowest figure since 1999. September usually boasts strong figures for car registrations as it is when license plates change. “During a torrid year, the automotive industry has demonstrated incredible resilience, but this is not a recovery,” said Mike Hawes, the chief executive of SMMT. “Despite the boost of a new registration plate, new model introductions and attractive offers, this is still the poorest September since the two-plate system was introduced in 1999. “Unless the pandemic is controlled and economy-wide consumer and business confidence rebuilt, the short-term future looks very challenging indeed,” Hawes added. The number of electric or plug-in hybrid cars, however, jumped 184.3% compared to the same period last year, which the SMMT said was due to a higher choice of models. Thanks to the challenging trading environment and impacts of the pandemic, the sector is expected to lose £21.2bn in sales overall in 2020. Whilst sales looked positive in July as car showrooms re-opened, sales have since declined. August saw just 88,000 new cars registered, which was 5.8% in the same month in 2019. Karen Johnson, who is the head of retail and wholesale at Barclays Corporate Banking, said that whilst the sector is clearly in a “rut”, there could be a brighter future on the horizon. “Lots of consumers now have both the funds and the motivation to commit to a big ticket purchase like a new car. “Months of lockdown allowed many to save significant chunks of money, whilst evolving working patterns mean buyers are investing in motors that will work for them no matter what changes lay ahead,” she said.
   

Cineworld shares dive 57% on US & UK closures

Safiya Bashir
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103
Cineworld shares dive 57% on US & UK closures
Cineworld shares (LON: CINE) plummetted over 57% on Monday’s opening. The group announced that it would be temporarily closing all of its US and UK cinemas after delays to the new James Bond film. The cinema closures will begin this week and will risk 45,000 jobs across the US and UK. “As major US. markets, mainly New York, remained closed and without guidance on reopening timing, studios have been reluctant to release their pipeline of new films,” said Cineworld in a statement. “In turn, without these new releases, Cineworld cannot provide customers in both the US and the UK – the company’s primary markets – with the breadth of strong commercial films necessary for them to consider coming back to theatres against the backdrop of COVID-19.” The delay of the new James Bond blockbuster has been blamed for causing havoc on the industry. Philippa Childs, head of the arts union Bectu, said: “The announcement that the release of No Time to Die, the 25th film featuring the secret agent, would be delayed again has left cinemas facing financial obliteration because of the absence of other forthcoming blockbuster films….. “According to industry sources, the cinema industry is caught in a Catch-22 situation. Movie studios are reluctant to release blockbuster films until they are sure that audiences will return – and cinema owners are unable to prove they can lure back audiences given the absence of blockbusters. “The stark reality is that without new releases it is unlikely that footfall will increase to a level that makes opening financially viable,” said Philippa Childs, head of the arts union Bectu.” The closure of Cineworld cinemas in the UK risks 5,500 jobs. The group has struggled this year as cinema closures led to the company posting losses of £1.3bn for the first half of 2020, compared to profits of £110m a year earlier. Cineworld shares (LON: CINE) plummeted 57% this morning to 17p. In January 2020, before the pandemic, shares at the company were worth 220p.

Mulberry shares slip as group swings to £14.2m loss

Safiya Bashir
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0
Mulberry shares slip as group swings to £14.2m loss
Mulberry (LON: MUL) has reported a £14.2m loss in the year ending 28 March. Due to the impact of the pandemic and a “challenging UK market”, the group reported a 10% fall in revenue to £149.3m – down from £166.3m the year previously. Mulberry said that was on track to reach profit before the UK’s lockdown forced the group to close stores. International retail sales increased by 4% from £31.3m to £32.4m. International sales accounted for 26% of total retail revenue. The fashion retailer said that it will not pay a full-year dividend “in order to maintain a robust liquidity position given the uncertainty and duration of COVID-19.” The group remained positive and said that trading since the start of the financial year is ahead of expectations. Thierry Andretta, the group’s chief executive, said: “The Group has made strategic and operational progress during the most challenging market conditions in the history of the brand. Prior to the impact of the Coronavirus pandemic we were performing well and on-track to record a pre-tax profit in the second half of the year. “This was due to progressing our fourpillar growth strategy: our omni-channel distribution, our international development in Asia, a drive for constant innovation, and sustainability. The Group has been able to withstand some of the pressures that we, and indeed the entire retail industry, have been faced with. “Post year end, the Group has continued to benefit from its long-term strategic focus with initial sales ahead of our early expectations. However, we cannot escape the reality that British luxury and UK cities face a very uncertain future, hampered by necessary but dramatic social distancing measures and alarmingly low levels of footfall, as well as the pressures of high rents and business rates and the upcoming changes to tax free shopping.” Mulberry shares (LON: MUL) opened 3% lower and are trading at 161,00 (0818GMT).

Recovery gains momentum for Restore

Andrew Hore
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Recovery gains momentum for Restore

Restore (LON: RST) has been resilient this year and remains highly profitable. The share price does not reflect this because it does not take account of the recurring revenues generated by document storage, which is a long-term requirement whether or not offices are open.
Shredding, scanning services and office moves operations are more dependent on office activity, so they have been harder hit. Management says that shredding is the only part of the business where recovery has still some way to go.
The document storage operations are set to grow this year. Overall, group revenues are running a...

Does James Bond delay mark cinemas’ time to die?

Jamie Gordon
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Does James Bond delay mark cinemas’ time to die?
With the likes of Amazon, Netflix and Disney Plus hungrily vying for viewers’ attention, the recent announcement that the next instalment of James Bond will now be delayed until April 2021, could well be the final nail in the coffin for ailing cinemas. Odeon (LON:ODE.F), Vue, and Cineworld (LON:CINE) have all posted reflecting what has been a torrid half-year of trading for film outlets relying on physical attendance. The hope since then, has been that much like restaurants, bars and even the housing market, consumers would be keen to release the pent-up demand created by lockdown. And, while social distancing has certainly constrained capacity utilisation (to around 30%), the main issue is that there simply isn’t a product worthy of bringing back cinema-goers in droves. The 2020 slate already looked fairly bland, but with Tenet receiving mixed reviews, family film ‘Soul’ skipping cinemas and moving straight to on-demand streaming services, and now the James Bond mega title ‘No Time to Die’ being postponed, the next few months look entirely dire for the already-struggling cinema sector.

James Bond giving Cineworld a licence to be killed

Of the UK’s big cinema chains, Cineworld, stands at the front of the pack in terms of being absolutely blindsided by the James Bond delay. Having already booked a £1.3 billion loss, The Times reported that the cinema is drawing up plans to close all 128 of its UK theatres, which would raise serious concerns over the future of the company’s 5,500 staff. It is likely that staff will be asked to accept redundancy, with some potential for incentives to rejoin, should theatres reopen in the new year. In its statement, Cineworld said: “We can confirm we are considering the temporary closure of our UK and US cinemas, but a final decision has not yet been reached.” “Once a decision has been made we will update all staff and customers as soon as we can.” The news followed attempts by the cinema to entice viewers by lowering ticket prices to as low as £4, and writing to the prime minister to say that the industry has become ‘unviable’ because of the James Bond delay – with the previous franchise release grossing £80 million at the UK box office.

Legal and political failures could spell the end of a cultural and social institution

Many have been quick to condemn the lack of support by the UK government, to protect the jobs of staff at cinemas such as Cineworld. And indeed, this criticism is deserved. However, we should also condemn both legislation changes, and lack thereof, in the US, which have seen studios take chunks out of the cinema industry with nothing given back in return. Between the AMC-Universal deal shortening the theatrical window (allowing streaming sites to show new releases sooner), the overturn of the 1948 Paramount Consent Decrees (preventing studios from buying cinemas), and a lack of action preventing studios such as Disney from releasing their big titles exclusively on their online platforms, cinemas have been dying a slow death for well over a year. Aside from lamenting the plethora of Western political failures, spanning over years and likely to see viewers at the behest of behemothic online companies, we should also mourn the potential collapse of cinema as a cultural and social institution within society. Looking at the situation as it stands, Third Bridge senior sector analyst, Harry Barnick, comments:
“Now more than ever support from landlords and the UK government will be essential for the survival of cinemas.” “The announcement confirms what we already know: cinemas can’t exist without compelling content.” “This has a number of broader implications for the sector, for instance: how will competitors like Odeon and Vue respond and will scheduled releases such as Soul move directly to PVOD.” “Whilst national chains like Cineworld have suffered due to the pandemic, smaller independent chains have felt the downturn just as harshly. It appears Cineworld intends to re-open sites in the new year, but can smaller operators afford another 6 months of closures and does this spell the end of the independent cinema sector in the UK.”

Hospitality sector: new report shows 300,000 jobs are at risk

Safiya Bashir
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1
Hospitality sector: new report shows 300,000 jobs are at risk
The British Beer & Pubs Association (BBPA) has warned that unless the government acts now, 300,000 jobs are at risk of being lost. Due to the reduced capacity in pubs and restaurants and the 10 pm curfew, a new report by the by consultancy Oxford Economics found that 291,000 are at risk. “The 10pm curfew should be removed if demonstrably not working as intended or adjusted to provide for gradual dispersal and avoid the unintended consequences for the wider sector including cultural activities now impacted,” said the BBPA in a letter to Boris Johnson. Weekly sales in pubs are down 23% on the same period last year as the new “rule of six” and local lockdowns are taking effect. BBPA chief executive, Emma McClarkin, said: “It’s important to remember that outside of the current circumstances our sector is a thriving one – and when this epidemic ends it will be key to driving the economic bounce-back we will desperately need.” “For that to happen though the government must invest in it now to ensure its still here to play that role,” she added. The pressure is mounting on the government to take drastic measures and protect the UK’s hospitality sector. The hospitality sector in cities with local lockdowns have been worst hit. Council bosses from Liverpool, Leeds, and Manchester have warned that the local lockdowns will “result in mass-market failure, huge levels of redundancies and depleted and boarded up high streets.” In a letter they wrote: “The stark reality is that these businesses are facing the prospect of a complete decimation in trade, not just in the short term but as we look ahead to the sector’s traditional lifeblood of the Christmas period and almost certainly continuing into spring/summer of next year which we know with certainty will result in mass-market failure, huge levels of redundancies and depleted and boarded up high streets.” Whilst Rishi Sunak revealed a new job support scheme, there are calls for the government to do much more to protect jobs after the furlough scheme ends.        

Moonpig considers IPO after strong lockdown sales

Safiya Bashir
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0
Moonpig considers IPO after strong lockdown sales
Moonpig is exploring the idea of floating on the London Stock Exchange. According to Sky News, the online greeting cards retailer is in talks with investment banks and looking into a public listing. The privately-owned company is said to be in the early stages of talks. Moonpig has grown over the pandemic and the group said that over lockdown it added an additional one million customers. Sales this year have surged 44% this year to £172.8m whilst pre-tax profit has surged 137% to £33m. “As a high growth company we constantly evaluate our funding options, and regularly meet with advisers on this subject,” said a spokesperson. Moonpig’s boss is Kate Swann, who has previously led WH Smith and SSP Group.
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