Coronavirus spread leaves markets feeling out of sorts

Jamie Gordon
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Coronavirus spread leaves markets feeling out of sorts
Asian markets fell sharply during the Tuesday session, with fears surrounding the fast-spreading potential of Coronavirus. The virus, which first saw prevalence in Wuhan, China, has now claimed 6 lives, with 291 infected. Having thought the virus was passed from animals to humans, scientists have now confirmed that the virus can be transmitted from person to person. It was also reported that Chinese hospitals had not been taking adequate steps to test and officially report cases of the illness, though the government is taking action to control its spread. There is also concern surrounding the economic impact of the virus. Doubts are being voiced surrounding travel to and from China, with the upcoming Lunar New York travel rush. Similarly, questions are being asked about the safety of Chinese exports, with the first confirmed cases of the illness having been confirmed in the Philippines today, alongside existing cases in Japan, South Korea and Thailand. Australia announced it would be performing mandatory screening of all passengers from Wuhan, following confirmation that a man carrying the illness had entered the country. North Korea stated that it was temporarily denying access to foreign tourists, in light of the spread of the virus in neighbouring China. Reacting to the developments, the FTSE, CAC and DAX all dropped as trading began. A glint of light was delivered following the start of trading in the US, as the Dow Jones suffered only minor losses, and helped European indices to regain their footing. Speaking on Tuesday’s market movements, Spreadex Financial Analyst Connor Campbell stated,

“The US open appeared to calm things on Tuesday, the Dow Jones not quite as afflicted by the coronavirus-fears that struck the Asian and European indices.”

“Losing 0.3%, the Dow slipped to 29250 after the bell. That’s far removed from the 1%-plus declines seen at the start of the European session, the difference in performance actually somewhat helping the likes of the FTSE and CAC reduce their losses.”

“The UK index is now down 0.7%, as is its French counterpart. Meanwhile the DAX, which was already outperforming its peers, cut its losses to just 0.2% following a far better than forecast pair of ZEW economic sentiment readings.”

“It is unclear at this point whether fears surrounding the coronavirus in China are already beginning to dissipate, or if it will remain one of the market’s underlying concerns over the coming weeks.”

“The pound received a lift on Tuesday, benefiting from a better than expected wage growth reading of 3.2%, including bonuses, against the 3.1% forecast. Combine this with Donald Trump talking up the potential for a ‘tremendous’ trade deal between the US and UK at the WEF in Davos and sterling was able to rise 0.4% and 0.3% against the dollar and euro respectively.”

“Looking ahead to this evening and Netflix releases its fourth quarter results. The update comes between the launches of Disney+ (NYSE:DIS) and Apple TV+ (NASDAQ:AAPL) last year, and the impending introduction of HBO Max (NYSE:T) and NBC’s Peacock (NYSE:CMCSA), meaning subscription numbers are going to be main driver of the post-release reaction. The company is expecting to add 7.6 million net new subscribers – 7 million internationally and around 618k in the US. Arguably even more important will be its guidance for Q1 2020, especially if it shows the impact of its emergent rivals.”

Highland Gold beat 2019 output guidance following Russian success

Ishen Patel
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Highland Gold beat 2019 output guidance following Russian success
Highland Gold Mining (LON:HGM) have told the market that they have beaten their 2019 output guidance in a relatively impressive update. The firm said that it had been helped out at the Mnogovershinnoye mine in Russia which allowed the firm to beat expectations. In the fourth quarter to December 31, production from Highland’s four operating mines totaled 83,429 ounces of gold equivalent, a 27% year-on-year rise from 65,753 ounces of gold equivalent. Across 2019, total output was 300,704 ounces of gold equivalent, which saw a 12% jump from the 269,500 figure one year ago. Notably, total output exceeded Highland’s annual production guidance range of 290,000 to 300,000 ounces. Novo output was 5.3% lower year-on-year and at Belaya Gora and Valunisty, both also in Russia, production was down 9.1% and 20%, respectively. Looking forward, the firm said that it expects no significant production growth across 2020 and output will remain between the 290,000 and 300,000 guidance range. Highland Gold said: “Mnogovershinnoye outperformed expectations, with production up 9% in the fourth quarter and 10% for the full year on the back of improved grades and higher processing volume. “Novo also exceeded its production targets for 2019, with improved fourth quarter production making up for a weaker first half, although output was lower year-on-year.”

Highland build from September success

In September, the firm saw its profits boosted by increased sales volumes. The Company stated that its gold volume sold increased from 121,174oz for H1 2018, to 142,609oz for H1 2019. This led an increase in revenue on-year, from US$146.9 million to US$174.7 million. Highland Gold Mining operating profit rose from $50.67 million to $57.38 million, and their net profit spiked from $28.64 million to $45.69 million. The outlook was equally positive for shareholders, with their EPS rising from $0.088 to $0.125 in a comparison of the same periods.

Russia looks fruitful for miners

Another competitor in the market, Eurasia Mining (LON:EUA) saw their shares rally following an update on their Russian operations. Eurasia reported that it is edging closer to securing the final approval for the Tipil permit, a platinum group metals target located in Russia. Eurasia said: “The application has been approved by the Russian federal bodies and requires only a formal meeting of the local mines commission.” Research in Russia found that the whole of Monchetundra, which includes areas where Eurasia does not currently have a licence for, has a potential 40 million ounces of platinum group metals. Highland Gold have made a bold statement to the market having exceeded their production targets, however the targets have remained consistent. Shareholders can expect 2020 to be stable consistent year for Highland. Shares in Highland trade at 182p (-0.60%). 21/1/20 14:40BST.

Egdon Resources announce UK discoveries deal with Shell

Ishen Patel
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Egdon Resources announce UK discoveries deal with Shell

Egdon Resources (LON:EDR) have seen their shares spike on Tuesday after the firm noted it had partnered with an oil major.

Shares in Egdon trade at 5p having spiked 2% on Tuesday. 21/1/20 14:21BST.

Egdon told the market that they had partnered with Shell (LON:RDSB) on two UK gas discoveries.

Egdon signed the exclusivity agreement in November with a “large internationally-recognised exploration and production company” covering the P1929 and P2304 offshore UK licences.

Shell will be taking a 70% working interest in the two licenses and will take over operations, whilst Egdon will keep the remaining 30%.

Shell will pay for the stake by funding 85% of the costs of buying and processing 3D seismic survey data for the Resolution and

Endeavour gas discoveries on the licences. The acquisition price is capped at $5 million, beyond which Shell will pay 70% of costs.

Mark Abbott, Managing Director of Egdon Resources plc, said:

“We are delighted to have signed a farm-in agreement with Shell in respect of these highly prospective licences. This transaction validates our views on the potential of these blocks and introduces a highly experienced and respected operator to progress appraisal activity on the Resolution and Endeavour gas discoveries. In difficult market conditions Egdon has secured a substantial carry on costs to the well investment decision whilst retaining a material 30% interest in the licences.

Our immediate focus will be to work with Shell to agree a forward work programme and timeline for the licences with the OGA. The first part of this work programme will be the acquisition of a marine 3D seismic survey to enable a decision on the contingent appraisal well. We look forward to working with Shell and benefitting from their substantial worldwide operational experience and expertise, including in the development of carbonate reservoirs of this type.”

Mixed few months for Egdon

Prior to today’s announcement, Egdon have seen a mixed few months.

In November, the firm saw its shares spike as it told the market it had received a six month extension for two UK offshore gas licenses.

The UK Oil & Gas Authority extended the period for the P1929 and P2304 licenses until the end of May 2020.

With the new extension, the firm will be able to execute a farm-in deal for the licenses to provide funding for the projects by the end of January.

P1929 has estimated contingent gas resources of 231 billion cubic feet of gas and P2304 another 18 billion cubic feet.

Shell expand and create new partnerships

Shell are continuing to expand their horizons through deals and parternships. Last week, a notable update hit the market which involved Shell.

The firm said last Thursday that they signed a memorandum of understanding with China National Offshore Oil Corp (HKG:0883) to build its first commercial scale polycarbonate production plant.

The deal that has been reached aims to build more production equipment at the new site in Huizhou and shows an active effort by the multinational to invest into China.

Shell have already made headways in Singapore for another plant in similar fashion to the one mentioned today, and this is being built at its Jurong Island Chemicals Plant as an interim step.

Egdon Resources would have impressed with the market and shareholders with the partnership with an oil titan in Shell.

The firm will be hoping that this partnership can prove fruitful and produce results for both parties.

Talktalk announce sale of Fibrenation for £200 million

Ishen Patel
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Talktalk announce sale of Fibrenation for £200 million

TalkTalk (LON:TALK) have announced today that they have sold their fibre network roll-out business Fibrenation.

Shares in Talktalk trade at 113p (-0.47%). 21/1/20 13:50BST.

TalkTalk is selling FibreNation Ltd, as well as its two-thirds stake in Bolt Pro Tem Ltd, for a combined £200 million in cash to CityFibre Infrastructure Holdings Ltd.

The firm initially launched Fibrenation as part of a plan to roll out fibre network to over three million UK homes and businesses.

The firm said that the decision to sell the roll out business was made to simplify the business, and a sale was the best way forward.

The FibreNation business suffered an underlying pretax loss in the year to March 2019 of £6 million, TalkTalk noted.

TalkTalk said 58% of shareholders have approved the two sales, and it plans to use the proceeds to strengthen the balance sheet. The deal is expected to be completed in March.

Tristia Harrison, Chief Executive of TalkTalk, commented:

“We are pleased to announce today’s agreement with CityFibre, which is good news for TalkTalk, and good news for Britain and its full fibre roll-out ambition. Our investment over the last five years and the excellent work delivered by the FibreNation team, combined with CityFibre’s well-established platform, will support wide-geographic reach of full fibre and further drive competition in the market.

“The sale of FibreNation to CityFibre, in combination with a competitive wholesale agreement, enables us to continue our strategy to accelerate TalkTalk’s fibre growth for our residential and business customers, thereby delivering a superior customer experience at an affordable price.”

Talktalk see positive few months

In November, the firm reported that it had swung to an interim profit.

In the six months to September 30, revenue fell 3.6% to £792 million from £822 million last year, whilst a pretax profit of £1 million was reported from a £4 million loss last year.

Headline earnings before interest, taxation, depreciation and amortisation climbed 39% to £140 million from £115 million.

TalkTalk said: “Headline Ebitda outlook for the year remains unchanged, with increased Fibre penetration and headquarter move efficiencies driving a materially lower cost base.”

TalkTalk moved its headquarters to Salford, Greater Manchester, from London, a moved which delivered £7 million in first half cost savings.

The sale of Fibrenation will allow Talktalk to focus on the structure and operational side of the business, and with these changes shareholders will hope that 2020 can continue to bring success.

Caledonia Mining increase their stake in Blanket Mine to 64%

Ishen Patel
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Caledonia Mining increase their stake in Blanket Mine to 64%

Caledonia Mining (LON:CMCL) have told shareholders that they have increased their holdings in the Blanket gold mine.

Caledonia initially held a 49% stake in the mine and this deal was approved in November 2018, however was only cleared last November following regulatory approval.

The firm on Tuesday told the market that it has increased its holding to 64%, which will please shareholders.

The miner will be paying $16.7 million to partner Fremiro Investments Pvt Ltd.

Caledonia is paying in both shares and the cancellation of a loan between Fremiro and Caledonia. Fremiro will have a 6.3% stake in Caledonia following the sale.

Steve Curtis, Chief Executive Officer, said:

“I am pleased to report that the Company has concluded its transaction with Fremiro to increase Caledonia’s shareholding in Blanket to 64 per cent. I would like to thank Fremiro for its support as a shareholder in Blanket during the last seven years and am confident that Fremiro, now as a significant shareholder in the Company, will continue to be supportive of Caledonia’s business going forward.”

Caledonia grow from strength to strength

Last week, the firm saw their shares bounce following record production figures from its Blanket Mine.

The mine produced 16,875 ounces of gold in the last quarter of 2019, a record for the firm. The figure was 24% higher than the quarter before and 13% higher year-on-year.

The firms total production in 2019 was 55,182 beating internal guidance which was pitched between 50,000 and 53,000 ounces.

The fact that Caledonia have increased their stake in the Blanket Mine following record production figures last week, is an impressive accomplishment and the firm will hope that the production can continue throughout 2020.

Looking to 2020, the Jersey-based company sees gold production between 53,000 ounces and 56,000 ounces. Curtis said: “I am delighted to report a production record at Blanket of 16,867 ounces in the fourth quarter. An improvement in the electricity supply and vigilant focus on grade control and production tonnage have resulted in an excellent production result for the final quarter of which our entire operational staff can be justifiably proud.

Shares in Caledonia trade at 651p (-0.50%). 21/1/20 13:43BST.

Update: Stock Spirits hit back at Western Gate over dividend dispute

Ishen Patel
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Update: Stock Spirits hit back at Western Gate over dividend dispute
UPDATE: In a statement this afternoon, Stock Spirits have had their say. “We have a strategy of both organic and M&A-driven growth which, as our recent full year results show, is driving a strong financial performance and is enabling us to pay consistently increasing dividends in line with our stated dividend policy,” said Stock Spirits in a statement. “There is nothing erratic about this policy. As we have consistently said, we continue to assess a range of more meaningful and value-creating M&A opportunities in both existing and new categories and markets, but if such opportunities are not realised then we will of course consider making additional shareholder distributions.” “It is our view that payment of a special dividend now would act as a significant constraint on our ability to execute on our strategy, which we firmly believe is the best way of improving returns for our shareholders,” the company continued.

Stock Spirits (LON:STCK) have faced public criticism from one of their largest investors, in the form ofWestern Gate.

Portuguese investor, Luis Amaral voiced his opinion to the board of Stock Spirits demanding that the firm pay a special dividend.

Western Gate own 10% of Stock Spirits, and the firm has previously said to Stock that they want a higher dividend paid.

Both the firms appear to be in lockdown, however Stock are set to host their annual general meeting in February where stakeholders will get their say.

Stock Spirits does not have to pay the special dividend even if shareholders vote for it, the company has noted, adding such a payout would limit its ability to grow both organically and through acquisition.

Western Gate said “Furthermore, given Stock Spirits’ performance and after the payment of a special dividend, the company would still have EUR70 million available for new acquisitions. This demonstrates the company has comfortable headroom to reward shareholders and conduct meaningful M&A.

“Given the lack of meaningful progress in acquiring profitable assets since 2015, there is a case for the company to reward shareholders’ patience and to re-set the capital structure. We believe the company should focus its capital allocation on shareholders, core markets, and products, rather than the current erratic acquisition track record.”

“Western Gate is a long-term shareholder in Stock Spirits, and we are generally pleased with the improvement in the company’s operational performance,” it continued.

“However, for several years we have felt the company is being run in the best interest of the board rather than all shareholders. We are concerned with governance following the unprecedented response to resolution 20. We feel the board should recognise the lack of meaningful growth and the long-term nature of its acquisitions and return capital to shareholders”.

Why the special dividend?

Stock Spirits in December, gave shareholders a very impressive update which caused the dispute over the price of the dividend.

The firm updated shareholders by saying it had delivered a year of good growth as its successful strategy of pre-imiumisation continues to make progress.

Stock Spirits said said for the financial year ended September 30 its revenue rose 9.2% to €312.4 million from €282.4 million in a comparative period a year ago.

Another impressive figure which caught shareholder interest was that pretax profit had risen 24% from €282.4 million to €312.4 million.

The company increased its annual dividend by 5.1% which would have put the icing on the cake for shareholders.

The dividend saw a 5.1% rise from €8.51 a year ago to €8.94, which is certainly impressive when you look at the global market state.

Certainly, the reasons why Western Gate want the higher dividend is a good one.

Stock Spirits have performed impressively however, the firm will want to make sure that this issue is resolved swiftly before any escalation occurs.

Shares in Stock Spirits trade at 215p. 21/1/20 13:09BST.

PetroTal set to invest $99 million into Peru to expand production across 2020

Ishen Patel
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0
PetroTal set to invest $99 million into Peru to expand production across 2020
Petrotal Corp (LON:PTAL) have told the market that they are looking to expand their operations and production in Peru. The firm said in the Tuesday update that they will set aside a budget of $99 million for work across 2020, as the hungry nature of the firm shines through. The firm alluded to their new capital program, saying that it will allow them to be a “free cash flowing company”. Petrotal hopes that this new injection of funds will allow the firm to achieve its production target of 20,000 barrels of oil per day from the Bretana oil field based in Peru by the end of 2020. The firm outlined its target production over 2020 of 13,500 barrels per day which would be a significant rise from the 2019 figure. Notably, fourth quarter average production was 7,757 per day and the new targets will certainly impress shareholders. It has four horizontal production wells planned as well as a second water disposal well. Each well will cost around $13 million, with the water well costing $9 million. Manolo Zuniga, President and Chief Executive Officer, commented: “We are pleased with the success the Company has achieved to date developing the Bretaña oil field and plan to build on that success in 2020. PetroTal’s Board has approved the 2020 capital budget which is similar in scope to last year. and we are confident in our ability to execute it. With each new well drilled, we better understand the underlying reservoir, thereby enhancing our confidence in continued, focused growth in our two Peruvian blocks. The current and expected oil production levels provide a solid base which optimizes our cost structure and generates significant funds from operations. Building on the 2018 goal of putting the original oil well online in just five months, 2019 became a successful catalyst year for determining the oil fields’ capacity for strong organic growth. 2020 is the year we expect to grow into a Company with long term production and cash flow stability. PetroTal remains committed to bring about a beneficial change for the populations within its scope of influence in the region. I sincerely thank the entire PetroTal team and Board, as well as all our shareholders, for their continued support.

Petrotal only get stronger

In November, the firm said that they remained optimistic on production figures, and it seems that this has paid off. PetroTal reported the completion of drilling at its second horizontal well on the Bretana field in Peru, which gave shareholders and this run seems to have continued over the last few weeks. Following the completion of the Bretana field operation, the firm increased its year-end production guidance which would have appeased shareholders. The 5H well reached the target Vivian formation at the prognosed vertical depth of 2,696 metres, PetroTal said, and 700 metres of the planned 870 metres horizontal section have been drilled, which is inside the main productive oil reservoir. This will allow the expansion of nominal production facility to 10,000 barrels of oil per day, and 40,000 barrels of water per day. Petrotal have certainly seen an impressive few weeks, and if these new funds are invested both efficiently and correctly, then shareholders will be expecting success across 2020. Shares in Petrotal trade at 27p (-5.26%). 21/1/20 12:46BST.

Joules shares surge over 6% despite pretax profits slumping 9.3% year on year

Ishen Patel
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0
Joules shares surge over 6% despite pretax profits slumping 9.3% year on year

Joules (LON:JOUL) have seen their shares surge on Tuesday despite giving shareholders a modest update.

The firm reported a first half earnings fall with profit falling due to higher impairment costs and revenue slipping, whilst the gloomy British high street continues to struggle.

In the 26 weeks to November 24, the firm saw revenues fall 1.3% year on year to £111.6 million from £113.1 million.

With the inclusion of Black Friday, the firm reported that retail revenue rose 3.1% from last year, which was an impressive take in an otherwise modest update.

Interim pretax profit slumped by 82% to £1.7 million from £9.3 million a year before.

Joules attributed this too £6.7 million worth of impairment costs related to store closures or relocations, a move to a new head office and a distribution centre renovation.

Looking at an underlying basis, the firm said that pretax profits were 9.3% lower than last year with the figure dropping from £10.7 million to £9.7 million.

Nick Jones, Chief Executive Officer, commented:

“Joules delivered a robust first half sales and margin performance in line with expectations, which was pleasing in the context of a challenging consumer environment and widespread discounting by other clothing brands and retailers. This performance reflects the appeal of the Joules brand, our growing customer base and the flexibility of our ‘Total Retail’ model.

During the Period, we invested further in our infrastructure and customer proposition in order to support long-term sustainable growth. This included the roll-out of our new point of sale system across our store estate, enhancing the future profitability and flexibility of our store channel, progressing our new Head Office development, and launching our ‘Friends of Joules’ marketplace. Post period end, this investment has continued with the announcement of improvements to our future logistics capability in the UK and US.

Since the period end, we have updated on our disappointing Christmas trading performance, resulting from a stock availability issue impacting our online channel. We identified the root cause, have taken steps to rebalance the allocation of stocks between channels for Spring / Summer 2020 and are strengthening our underlying processes. I am reassured by the performance we saw in the retail channels where we had good stock availability and by our continued online traffic growth, evidencing the strong customer demand which continues to exist for the Joules brand.

Since joining Joules in September, I have been impressed by the strength of the brand, the flexibility of our multiple routes to market and our fantastic teams. I am confident in the opportunities for long-term sustainable growth of the Joules brand across multiple territories and I am excited to lead Joules through this next chapter of growth.”

Sosandar struggle in the clothing market as well

Yesterday, Sosandar (LON:SOS) another operator in the women’s wear market also reported revenue growth but told shareholders about the potential of a wider loss.

Sosandar attributed this wider loss to increased customer acquisition costs, which sent shares crashing on Monday.

The firm said generated a quarterly record net revenue of £3.8 million in the three months to December 31, as net revenue exceeded £1.2 million in each month.

Looking at their recent quarter of trading, Sosandar said that revenue was ahead of management expectations and more than double the revenue generated in the same period the year before and exceeding the £2.8 million recorded in the first half of financial 2020.

Notably, the company said growth in its active customer data base which totals at 110,132 which saw a 93% surge from the same period one year ago.

Joules will feel like they have missed an opportunity to really gain some ground in the sector, however the British retail market is still recovering from external shocks and tough trading.

Shares in Joules trade at 195p (+6.96%). 21/1/20 12:30BST.

Resolute announce fund raising plan to pay off Taurus Funds loan

Ishen Patel
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Resolute announce fund raising plan to pay off Taurus Funds loan
Resolute Mining (LON:RSG) have announced a fundraising plan to pay off a loan on Tuesday morning. The firm said that it is raising AUD196 million, which will be broken down into three segments. The firm will initially place 132.7 million shares at AUD1.10 each to raise the AUD146 million, and this will close on Tuesday. Resolute have said that they will place 22.7 million new shares at the same price to raise AUD25 million. It will also offer a share purchase plan to shareholders in Australia and New Zealand, with an individual limit of AUD30,000, to raise the last AUD25 million. The gold miner did note that the price offered does see a 6.4% discount off its closing price in Sydney of AUD1.175. As a a result of the share placing plan, in London shares have dipped 6.40% to 60p on the announcement. 21/1/20 12:11BST. The funds raised will be used to repay a $130 million bridge facility provided by Taurus Funds Management Pty Ltd, which is due for repayment at the end of January. This funding was used to purchase Toro Gold Ltd, which included the Mako gold mine in Senegal. Resolute’s Managing Director and CEO, Mr John Welborn said: “The ability to entirely repay the Toro Gold acquisition facility will save Resolute extension fees and interest payments. More importantly, today’s equity raising will support and enable the complete refinancing of our debt facilities during the current quarter. Completion of the equity placement, and the refinancing of our senior syndicated loan facilities, will enable the Company to simplify its capital structure and facilitate the retirement of debt facilities provided by Taurus. “The SPP provides our eligible shareholders, along with the institutional shareholders who are participating in the placement, the opportunity to increase their shareholding in Resolute on attractive terms at a pivotal point in the Company’s life cycle. Strong production guidance, a significant reduction in capital expenditure, operating assets which are now generating positive cashflows, and a stronger balance sheet with a greatly reduced debt burden, provides Resolute shareholders the opportunity for a positive re-rate.”

Busy start to 2020 for Resolute

Last week, Resolute announced that they have sold their Ravenswood gold mine in Queensland. The sale was confirmed after rumors hit the market last Monday, however shareholders have been fully notified with confirmation. Last week, it was announced that Resolute were in talks with private equity firm EMR Capital Management Ltd, and the mine has been sold to EMR Capital Management and Golden Energy and Resources (SGX:AUE). Resolute have said that they will receive AUD100 million in cash and notes for the initial sale of the mine. Subject to further terms of the deal, a further AUD200 million could be sent Resolute’s way dependent on gold production figures and gold prices. Notably, the firm also agreed a power supply deal with Aggreko PLC (LON:AGK) is giving the chance for Resolute to make good progress. The plans come into action following an ensured effort to lower operating costs for Resolute, and the new plans will help reduce power costs by around 40%. The share placing plan gives a good opportunity for Resolute so manage their debts in an adequate manner, and this should allow strong development across 2020 for the firm.

Integrafin report highest ever quarterly inflows as 2020 starts strong

Ishen Patel
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0
Integrafin report highest ever quarterly inflows as 2020 starts strong
Integrafin Holdings PLC (LON:IHP) have said on Tuesday that its first quarter fund inflow reached a new record for the company within an impressive update. The firm noted its platform rose to over £39 billion, which has left shares in green. Shares in Integrafin trade at 459p (+0.99%). 21/1/20 11:53BST. As of December 31, the investment platform said that it had £39.31 billion funds under direction which is 24% higher than the £31.65 billion recorded one year ago. Integrafin opened the first quarter with £37.8 billion funds under direction, which represents a 4% rise over the three month period. Net inflows across the period totaled £959 million, and combined market movements added £561 million. Ian Taylor, CEO, said: “We have started the financial year strongly, with our highest ever first quarter inflows. Data from Fundscape shows that Transact had the highest net inflows of all advised platforms in the first three quarters of 2019. The business is well positioned, with funds under direction 24% higher than 31 December 2018. These are positive indicators for the year ahead.”

Integrafin build on October update

In October, the firm reported a rise in funds under direction at the end of the 2019 financial year, but inflows slowed down in comparison. Integrafin held £37.8 billion in funds under direction, 4% higher than the reported £36.35 billion seen at the beginning of the quarter, and 14% higher than than the £33.11 billion reported at the same point last year. The FTSE250 listed organization who also runs the investment Platform Transact, said in its fourth quarter update that net flows were down 9% to £891 million, with inflows shrinking 3% to £1.5 billion, and £584 million in funds flowing out. Chief Executive Ian Taylor said “We ended the financial year with a good quarter. If only slightly, inflows were up and outflows were down on the prior quarter. We also learned from Fundscape data that Transact had the highest net inflows of all advised platforms in both of the first two quarters of 2019. These are positive indicators for the coming year”.
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