KEFI Minerals reach agreement to commence Tulu Kapi
KEFI Minerals plc (LON:KEFI) have said that the Tulu Kapi project in Ethiopia has been given the green light.
The miner told the market that a meeting had taken place of the joint venture company, and now that formalities and agreements had been made the project can commence.
KEFI are looking to develop the Tulu Kapi project as part of Tulu Kapi Gold Mines Share Co, and at the general meeting all discrepancies and negotiations had been completed.
This means that the partners can go ahead with the closing of subscription funds with ANS Mining which will provide $38 million funding. The Ethiopian Government have also pledged $20 million on the project.
Harry Anagnostaras-Adams, the executive chair at KEFI and of TKGM, said: “The formal TKGM shareholder meeting was an important step for this closely co-ordinated public-private-partnership for Ethiopia’s first modern mine in decades and has now cleared the way for the closing of the ANS equity subscription.
“The Tulu Kapi gold project is planned to be the largest single export generator in the country and all project planning is designed within the multi-party consortium to make our project a model first-mover in all social, environmental, human resource and technical aspects.”
Rio Tinto cut annual shipments guidance after damage from Cyclone Damien
Rio Tinto Plc (LON:RIO) have lowered their annual shipments guidance on Monday following external conditions affecting operations.
The firm said that shipments are expected to be lower at its iron ore operations in Western Australia following damage caused by Cyclone Damien.
Across 2020, the FTSE 100 lister miner now expects shipments at its Pilbara operations to be between 324 million and 334 million. Notably, this sees a formidable slump from previously guided range which was in the 330 million and 343 million ball park.
In 2019, Rio Tinto reported iron ore shipments at Pilbara of 327 millions which saw a 3% slip on 2018.
Again in 2019, the firm was affected by weather alongside structural and operational challenges in the first half of the year.
The firm said: “Rio Tinto’s iron ore operations in the Pilbara, Western Australia, are progressively resuming following the passing of Tropical Cyclone Damien. The cyclone caused infrastructure damage across our entire Pilbara network, including impact to access roads, electrical and communications infrastructure and accommodation. All mine sites experienced some disruption and will take time to return to normal operations.
Safety remains our top priority as we ramp up operations, and undertake the necessary remediation work, following the passing of the cyclone.”
Rio Tinto’s South African safety concerns
In December, the firm gave another update which alluded to the safety aspect of their operations. Rio Tinto gave the market a cautious outlook over safety concerns at its Richard Bay Minerals unit in South Africa. Rio Tinto said it has shut down the project over fears for the safety of its employees due to an “escalation in violence in the communities surrounding the operations”. The miner said it will contact its customers to “minimise potential disruptions”. As a result of this, Rio said its titanium dioxide slag production in 2019 will be at the bottom end of the guided range of 1.2 million tonnes to 1.4 million.Financial pledge to ERA
A few weeks before ago, Rio Tinto also made a pledge to the ERA to clean up and close the Ranger uranium project in the Northern Territory of Australia. Rio own a 68% stake in ERA and will look to assist them in the clean up and eventual closure of the Ranger operation. ERA has been looking to raise AUD476 million, or $323.4 million, to go towards the plan, but the firm has been unable to secure third-party underwriting support, so Rio Tinto will step in to “ensure ERA has the funds it needs”. ERA are set to end the Ranger project by January 2021, and clean up the side within five years of this date. Shares in Rio Tinto trade at 4,227p (+0.73%). 17/2/20 12:45BST.Oil prices remain stable despite Japan recording ecomomic 6.3% contraction
Oil prices have been relatively stable on Monday, as the fears of the coronavirus are starting to be cleared up.
The coronavirus has no doubt been affecting the price of global commodities and currencies over the last few weeks, as businesses and investors have remained cautious.
Last week it was announced that there were people in the UK who had been diagnosed with the coronavirus, however the situation was seemingly under control.
Oil prices have remained flat on a relatively quiet day for markets on Monday. Concerns of falling fuel demand following the coronavirus have now been offset giving a chance for oil to steady.
The price of West Texas Intermediate is $52.07 seeing a modest 0.04% rise, whilst Brent Crude has slipped by 0.17% trading at $57.22.
In the global economy elsewhere, Japan reported an economic contraction of 6.3% in the period between October and December and further contraction is expected by market analysts and traders.
Japan is the fourth largest oil consumer, possessing an industry base which accounts for a notable proportion of global production.
Last week, the International Energy Agency noted that the coronavirus may cause oil demand to fall by 435,000 barrels per day in the first quarter of 2020.
Notably, this would be the first quarterly drop since the financial crash in 2009. However, there still could be stimulated demand following the progress made in containing the coronavirus.
OPEC are also planning to approve more production cuts to decrease global supply and support prices, if this does happen then the price of derivatives could rise which may allow oil prices to bounce back following a bleak few weeks.
OPEC+ have agreed to cut oil output by 1.7 million barrels per day until the end of March, however technical committees are still discussing the extent to which the cuts should be made following a period of volatile prices.
Sound Energy’s Morocco deal is put on hold
Sound Energy PLC (LON:SOU) have seen their shares dive as the firm gave an update on its operations in Morocco.
The firm said that it has not yet seen proof of funds from a private energy firm who agreed to buy its assets in Morocco in November.
Sound Energy told the market that the deal had allowed the private firm to buy exclusivity on these assets and that due diligence had been completed.
The firm added that the buyer has not been able to show proof of funds, which meets the companies expectations.
Following this delay, the completion of the deal is now expected to be put back until the private energy firm can show that it has the capital to make the purchase.
Sound said: “The Purchaser has not yet demonstrated to the Company’s satisfaction the proof of funds required in order to advance the Proposed Transaction and nor has a sale and purchase agreement been finalized.”
Whilst this issue continues to develop, the firm said that they are prioritizing a “micro” liquefied natural gas production plan at the Te-5 Horst field on the Tendrara concession to generate early cash flow.
Sound Energy have remained confident for this field to produce gas results within the first few months of 2021, and as operations commence larger development procedures can happen.
While discussions with the potential purchaser continue, the board has been active in considering and refining in parallel other options to monetise its asset at Tendrara. We continue to believe that we have a valuable position in the Moroccan energy sector encompassing a significant discovery in Tendrara with exciting additional exploration upside potential,” said acting Chief Executive Mohammed Seghiri.
“The micro LNG development plan has been identified as an initial and rapid development strategy to prioritise early monetisation of the existing gas discovery, which can in turn facilitate a larger ultimate development. I look forward to reporting further on our progress in due course.”
Sound Energy announce deal in November
The deal which has been stunted today was initially announced in November by Sound Energy. A few months back, the firm said that the deal would be valued at $112.8 million. Sound Energy reported that the announcement was made to sell its Moroccan portfolio, the company has since entered into non-disclosure agreements with 23 companies and which resulted in the company receiving a number of non-binding offers. This was to finalize a binding sale & purchase agreement for 51% of Sound Energy’s stake in the eastern Morocco portfolio for $112.8 million. The company said it will also provide the undisclosed purchaser with a one-year option to acquire a further 9% of Sound Energy’s remaining interest in eastern Morocco portfolio, which has now been put on hold following the update today. Shares in Sound Energy trade at 1p (-23.46%). 17/2/20 12:04BST.Can Greatland Gold continue its surge?
Greatland Gold (LON:GGP) have seen an impressive few weeks of trading, and their shares have consistently stayed in green.
Shares in Greatland Gold trade at 3.9p (-2.50%). 17/2/20 11:24BST.
Greatland have seen a 52 week change of 130.55% in their share price, which has reflected a strong period of trading combined with a feeling of shareholder optimism.
The 52 weeks share price high has been noted at 5.89p whilst lows have been recorded off 1.47p.
The 50 day moving average stands at 2.86p and the 200 day moving average is slightly lower at 2p.
The question that many shareholders and investors are wondering, is whether Greatland can hit the 5p mark and break their own expectations.
Greatland’s recent updates
The firm in December reported that it had made progress in Australia, where the majority of its operations lie.
The results “significantly” extend the zones of existing high-grade mineralisation at the licence, Greatland said, to the north. In one hole, it found 107 metres at 2.2 grams of gold per tonne of ore, including 21 metres at 10 grams.
Following this, Newcrest Mining Ltd (ASX:NCM), which carried out the work at Havieron, has finished a $10 million first stage of a farm-in agreement, and a second stage also worth $10 million of expenditure has now begun.
Tasmania success
A few weeks on, the firm reported mineralization at another site in Tasmania.
The firm said that further drilling at its wholly owned Firetower project in Tasmania confirmed the presence of additional broad widths of shallow gold mineralization.
Greatland added that it completed a systematic grid-based drilling programme at Firetower, comprising 14 diamond holes with depths from 50 metres to 160 metres, for a total of approximately 1,530 metres.
The program was designed to test the main zone of gold mineralization and results to date have confirmed broad widths of gold mineralization.
Gervaise Heddle, chief executive officer, said: “We are pleased to report a second set of positive results from our recent drilling campaign at Firetower. They show a further improvement in the continuity between drill sections and highlight the potential for a robust, near-surface gold system.”
Primorus Investments hail Greatland
Last week, Primorus Investments (LON:PRIM) praised Greatland Gold as one of their drivers of success in their final quarter of 2019.
Primorus told the market that they had invested £625,000 into Greatland Gold, and this initial investment has now trebled to be valued at £1.9 million following a string of success for the gold miner.
The potential profit from its investment in Greatland stands at £1.3 million, and Primorus tips the investee’s share price to rise even further.
The appraisal certainly would have won shareholder confidence, and this would have given Greatland more confidence to deliver consistent results across 2020.
Price of Gold still rising?
One thing that could allow Greatland to break their expectations is the price of gold which has seen a recent bounce back over the last few months.
The price of gold is still climbing across global markets, and hovers around the $1,583.30 mark per ounce.
Researchers have said that prices of gold are yet to reach a prime phase of its price consolidation, however analysts and traders are expecting this to be in the near future.
One thing is for sure, gold prices will need some time before the market does see a surge.
However for Greatland, the future looks very bright and certainly following a strong run of results there can be high optimism for the firm to breach the 5p mark.
On 3/2/20 Numis Recommended a ‘Buy’ stance for Greatland Gold, with a target price of 6p.
William Hill appoint current DS Smith CFO as Executive Director
William Hill (LON:WMH) have announced the appointment of a new Chief Financial Officer on Monday morning.
The online and in-store bookmaker said that DS Smith’s PLC (LON:SMDS) current CFO Adrian Marsh, is set to join the company.
“Adrian has been a committed, professional and loyal DS Smith colleague. I have greatly enjoyed working with him on both a professional and personal level for the last seven years. He will leave with our gratitude for his contribution to the group and our very best wishes in his new venture,” said DS Smith Chief Executive Miles Roberts.
William Hill said that Marsh will join the company and be appointed as an Executive Director to the William Hill Board later this year.
Notably, the company’s current CFO, Ruth Prior will be leaving the Company to join Element Materials Technology.
William Hill praised the prior experience of Marsh, saying that he had been Group CFO at DS Smith for the past seven years.
Under the guidance and leadership of Marsh, DS Smith won an elite promotion from the FTSE 250 to the FTSE 100.
Marsh also serves as a is a Non-Executive director of John Wood Group PLC and chair of its Audit Committee. He was previously Group Director of Tax, Treasury and Corporate Finance of Tesco PLC.
CEO Ulrik Bengtsson said: “I am delighted to welcome Adrian to the Board. As a proven CFO of a FTSE listed company with M&A, deal execution and multi-sector finance experience in US & European markets, he will be able to make a significant contribution to William Hill in the enablement of the strategy and is a great addition to the team”.
Adrian Marsh commented: “I am extremely excited to be joining William Hill at such a key time in the Company’s history, and look forward to supporting Ulrik and the rest of Board in delivering their growth plans for the future”.
William Hill concluded by saying that they will announce the formal appointment of Marsh and the departure of Ruth in due course.
William Hill – CBS Sports Deal
One week ago, William Hill told the market that they agreed a deal with CBS Sports in the US. The bookmaker said that the partnership is set to roll out in March on digital platforms that broadcast CBS Sports, as a full rollout is expected later down the line. CBS have said that they will use William Hill’s odds, experts and sports books to increase their digital offerings and expand their presence in the US Sport broadcasting market. William Hill will also exploit benefits including the exclusive rights to promote its brand across CBS’s range of digital platforms and networks. Becoming the official sports betting provider to CBS is another major step forward for William Hill in our US expansion,” said William Hill Chief Executive Ulrik Bengtsson. Shares in William Hill trade at 181p (+0.64%). 17/2/20 11:14BST.French Foreign Minister expects ‘bruising battle’ Brexit negotiations
The French Government, who are a major negotiator at the EU table have told Britain that they should expect ‘a bruising battle” with the EU.
It has only been a few weeks since January 31st, where it was announced that Britain would be formally leaving the EU.
Following months of elections, campaigns and flirting with the thoughts of a second referendum, Brexit was finally ‘happening’.
Today, the French Foreign Minister Jean-Yves Le Drian told the media that they expect both parties to ‘rip each other apart’ as they looked to gain the high hand in Brexit.
Alongside Germany, the French Government have always had a strong voice at the European Union table and certainly it seems that PM Johnson will be put through his paces.
Johnson told the British people that he wanted to agree a deal which will put the British people first, and that no concessions would be made with the EU to ensure that the best possible exit deal would be materialized.
However, the French Government and others have seemingly had a say and this may not be as easy as once thought.
Le Drian also noted that it could be tough for the UK to reach its free trade deal by the end of the year, following the Brexit deadline deal.
The UK Government has taken a fairly placid approach to these comments, and said that it wanted to base a deal on “friendly co-operation between sovereign equals”.
David Frost, who is Chief Brexit Negotiator is expected to give further details of Britain’s aims and ambitions later today. Here it will be seen as to whether PM Johnson has got his side of negotiations correct, and whether ambitions are realistic.
The French Foreign Minister continued to add that the two parties had been polarized in their negotiations.
He commented: “I think that on trade issues and the mechanism for future relations, which we are going to start on, we are going to rip each other apart.
“But that is part of negotiations, everyone will defend their own interests.”
The French representative joined European Commission President Ursula von der Leyen and chief negotiator Michel Barnier by saying that the Withdrawal Bill will take a lot longer than that was expected by the British Government.
A Downing Street spokesperson said: “Our approach is clear – we are not asking for anything special, bespoke or unique, but are looking for a deal like those the EU has struck previously with other friendly countries like Canada.
“We want a relationship based on friendly cooperation between sovereign equals, one centred on free trade and inspired by our shared history and values.”
Laura Ashley shares crash over 43% following intense media speculation
Laura Ashley (LON:ALY) have seen their shares crash on Monday morning as the British high street firm has answered its critics in the media.
Shares in Laura Ashely dived 43.42% and trade at 1p. 17/2/20 10:39BST.
There is no doubt that Laura Ashley have seen a tough time of trading over the last few months.
Since their financial year ended in June, trading has been challenging and there has been speculation as to whether the firm would be needing help to survive in a tough British retail industry.
An update was not expected from Laura Ashley today, however it seems that the firm has seen the need to answer its critics in the media.
The announcement was in response to “speculation regarding its financial position.”
Laura Ashley said that in the 26 weeks up to 31st December 2018, total group sales were £109.6 million, which saw a 10.8% drop from £122.9 million in 2018.
Notably, the firm said that the decline in total revenue was due to market headwinds and decreased consumer spending.
Looking forward, Laura Ashley said that Wells Fargo and the Company’s majority shareholder MUI Asia Limited, are ‘discussing arrangements that will allow the Group to utilize sufficient funds from the Wells Fargo facility to meet the Group’s immediate funding requirements and to draw down additional amounts to meet ongoing working capital needs for the Group in the short to medium term.’
Andrew Khoo, Chairman, commented:
“We acknowledge that recent trading conditions, in line with the overall UK retail market, have indeed been challenging. There is however a robust plan in place to turn the business around and the Board of Directors is confident and optimistic that the recent appointment of Katharine Poulter will enable the business to execute this broad based strategy. The major shareholders have indicated their continued confidence in the business and are fully supportive of the management team and execution of the transformation plan.”
Finance Chief Departs Laura Ashley
In October, the firm announced that its Finance Chief had left the company. This resulted in shares plunging over 26%, however from today’s update the run has only got tougher for Laura Ashley. Sean Anglim stepped down after 20 years at the British Textile firm, and was replaced by Sagar Mavani. “The board would like to take this opportunity to thank Mr Anglim for his contribution during his tenure with the company and to wish him the very best for the future”.August loss reports
In August, a few months into its new financial year things got tricky for Laura Ashley as the firm reported a statuary loss before tax. The homeware and clothing retailer said that, for the 52 weeks to 30 June, statutory loss before tax amounted to £14.3 million. The primary causes for the year-on-year drop in profit are the underperformance of Home Furnishing and its website after a re-platforming exercise last November. Total like-for-like retail sales were down 3.5%, whilst total group sales reached £232.5 million, down from the £257.2 million figure recorded for 2018. These are testing waters for Laura Ashley. Following such heavy media speculation, there was a need to address these issues however it seems that shareholders are not as confident in the firm as reflected with the 43% crash in share price today.Tullow Oil announce disappointing Marina-1 findings
Tullow Oil (LON:TLW) have seen their shares dip on Monday morning as they gave an update on their Peruvian operations.
The firm said that results had been disappointing from the Marina-1 exploration well off the coast of Peru.
Tullow noted that they did not find any significant hydrocarbons, and that it was still testing the La Cruz and Mal Pelo formations, with some minor gas shows found but no discoveries in the main targets.
The oil firm said that the well was drilled to a total depth of 3,022 meters in 362 meter deep waters.
Following the disappointing results, Tullow decided that they will plug the Marina-1 well and abandon further operations at this site.
It was not all bad for Tullow, as the firm only held a 35% interest in the well, Karoon Energy are the major partner holding 40% whilst Pitkin Petroleum holds the remaining 25%.
“This is the first ever well in the deep-water section of the under-explored Tumbes basin. We will now integrate the important well information with the seismic data that we are currently reprocessing and update our prospect inventory for blocks Z-38 and Z-64. Tullow is building an extensive exploration position in Peru and, while this result is not what we had hoped for, we remain positive about Peru’s wider offshore exploration potential.” Chief Operating Officer Mark MacFarlane commented.
Tullow continue their strategic review
Hectic would be an understatement if we looked at the last few weeks for Tullow Oil. The firm said in January that they are planning to conduct a strategic review as the firm looks to find a new CEO. A few weeks back, Tullow reset their production guidance with regards to their operations in Ghana. Initially, it guided around 87,000 barrels of oil per day for 2019, and for between 70,000 barrels and 80,000 barrels in 2020. However, the oil firm confirmed that production in 2019 was 86,700 barrels of oil per day, and it reaffirmed the 2020 guidance, which was something for shareholders to take as a positive in what has been a hectic few weeks for the firm. Tullow guided for revenue in 2019 of approximately $1.7 billion, gross profit of around $700 million, and capital expenditure around $490 million. The disappointment today does alluded to some other issues at Tullow. Since the December crisis, the firm has struggled to bounce back however this will take time as Tullow have said and shareholders will have to be patient. Shares in Tullow trade at 43p (-4.35%). 17/2/20 10:30BST.Share Plc agree £62 million takeover deal with Interactive Investor
Share Plc (LON:SHRE) have agreed a £62 million takeover deal with Interactive Investor, as was confirmed this morning.
Share PLC, who own the Share Centre is an online stockbroker which places an emphasis on retail investors.
Gavin Oldham OBE, Executive Chairman of Share plc said: “I am delighted to welcome this combination of our businesses, designed to transform the prospects for individual share ownership and personal investment across the United Kingdom. Our share owners, employees and customers are well aware of my passion for egalitarian capitalism, not only right across society but also across generations. It delivers the economic freedom that comes from having a personal reserve of savings and investment, and a society at ease with itself: as owners, employees and consumers combine ownership with a responsibility for all.”
In this morning’s update, it was said that the deal will be paid in both cash and shares. 90% of the offer will be made in stock dealings whilst the remaining 10% will be rounded up in cash.
Shareholders were told that they will receive 4.1p in cash and 0.00084 of an Interactive Investor share per share in Share PLC held.
Interestingly, the price offered shows a 41% rise on the closing price of Share PLC at 19p on Friday.
As a result of this morning’s announcement, shares have surged by 13%.
Shares in Share Plc trade at 33p (+13.79%). 17/2/20 10:06BST.
Both firm noted that they share common beliefs and values to take the new merger deal forward, and Interactive Investor have said that they believe the deal will benefit shareholders and customers of the Share plc.
Commenting on the Offer, Richard Wilson, CEO of ii, said:
“We are delighted with this transaction. The firms’ shared values and combined strengths reinforce ii’s position as a leader in the retail investment services marketplace. With our fair flat fees we have built a strong and compelling alternative to percentage fees, in a business that puts the customer first.
Combining our individual strengths brings further scale and the opportunity to deliver enhanced value, service and customer experience to an enlarged customer base.
Our purpose is to help customers take direct control of their financial future, providing tools and support to make informed investing decisions. This transaction contributes significantly to that goal.”
Gavin Oldham also spoke at the firm’s AGM about the need to look at their strategic ambition, and transform the direction and size of Share Plc.
Oldham concluded: “At our Annual General Meeting in June 2019, I spoke of our major strategic ambition to transform Share plc ’s business over the coming years. We have to grow significantly in order to achieve this, not only in profitability but also in scale and in substance. That is why we have been prepared to investigate how others, who share our ambition for a more egalitarian form of capitalism, would work with us in order to achieve it. With our prospective new colleagues in ii we have discovered just such a meeting of minds, and a shared purpose for the future.”
Certainly this is an interesting piece of business for both parties, however considering the goals of Share this does fit in with their ambition to scale up and tap into a larger consumer base.
When the merger has been fully integrated, this certainly could be a shrewd piece of business for both firms.