Cora Gold find high grade gold intercepts in Mali
Cora Gold (LON:CORA) have found multiple high grade gold intercepts at its Sanankoro gold project in southern Mali.
The gold miner said that drilling had targeted deeper oxide and sulphide extensions to the current inferred mineral resource of 5.0 million tonnes, which has a grade of 1.6 grams per tonne of gold, containing 265,000 ounces of gold.
From the results, Cora said that drilling results had shown 2.61 grams of gold over 29 meters, including 3.89 grams over 12 meters at one of its operations.
Bert Monro, CEO of Cora Gold, commented,
“Cora has successfully intersected multiple higher-grade gold intercepts at Sanankoro in its latest drill programme. This set of results mainly tested continuity of mineralisation at depth, in part below the limit of the existing Resource pit shells. The current Resource has a range of pit depths from about 40-100m so there is significant scope to increase the open pit Resources with further successful drilling.
“Our recently announced Scoping Study, which was calculated on our current Maiden pit-constrained Inferred Mineral Resource of 5Mt at 1.6 g/t Au for 265,000 ounces of gold, highlighted the attractive economic returns possible at Sanankoro including a high IRR of 84% and short capex payback of 18 months. We look forward to announcing further results from this drilling programme covering predominantly potential extensions to existing Resources.”
Namaka results hit by coronavirus leading to shares crashing 23%
Nakama Group PLC (LON:NAK) have seen their shares crash on Tuesday as revenues took a bruising from the ongoing coronavirus epidemic.
There is no doubt that the coronavirus now has become a global crisis, and millions of Chinese stocks, businesses and indexes have been wiped off following the spread.
Global Governments are now taking a heavy approach to stop any risk of spread or contamination, however it seems that the disease has already hit the UK with a numerous number of cases being reported.
Nakama, who hold operations in Hong Kong, London, Singapore and have other operations in Asia have seen their revenues bashed following the coronavirus outbreak.
Nakama shares crashed 23.53% on Tuesday afternoon and trade at 0.65p. 11/2/20 12:58BST.
The recruitment firm said that trading to the end of March has met expectations, however the final quarter presented challenges.
Nakama said that revenue was bruised by the outbreak of coronavirus in both Hong Kong and Singapore, as local businesses look to delay new hiring until the virus assessment has been fully completed.
“The impact of Coronavirus on revenues for both Hong Kong and Singapore have been immediately felt. As a result of the curbs on movement of people imposed by regional governments, firms are currently choosing to delay, in some cases indefinitely, the start dates of new hires until the full impact of the virus has been determined, directly impacting revenue recognition for the Group. Furthermore, recruitment activity generally has been immediately impacted by the effects of Coronavirus. Despite this immediate challenge, the Asia region, as a whole, remains highly attractive and it is expected that the future growth of the business will be focussed on developing the Group’s reach in region.”
In the UK, Nakama said that the region remains “challenging” following the changes to IR35, which has reduced Nakama’s monthly revenue figures.
The firm concluded by saying:
“At the start of the calendar year the decision was made to relocate the Nakama UK office to Caterham, where the Highams business is based. Management are pleased with the positive response this has received from employees to date. Furthermore, as a result of the implementation of the new robust performance management programme, the Managing Director of the Singapore office exited the business and has been replaced internally.
While headcount in the Group has decreased year on year, the Board believes that these reductions are necessary in order to bring the cost base in line with revenues to ensure the business continues to be profitable going forward.
The Group’s cash position remains severely constrained and the Company faces a short-term cash challenge until the full impact of the recent cost reductions has come through. The Board are considering several alternative sources of funding to improve the Group’s cash position, but the Group still urgently requires an injection of capital.”
Primorus Investments hail Greatland Gold performance in strong end to 2019
Primorus Investments PLC (LON:PRIM) have reported a strong final quarter in their Tuesday update as subsidiary investments have led to success.
The firm hailed the recent performance of Greatland Gold (LON:GGP) as one of the drivers of success in the 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.
Primorus also noted that Truspine Technologies had made progress. This firm is a medical devices company, and Primorus said that Truspine is “moving fast towards a London IPO”.
Alastair Clayton, Executive Director commented:
“Whilst the fourth Quarter of 2019 was again another period of solid growth across our diverse portfolio, it is fair to say that post-period (early 2020) has got off to an excellent start. We will return to these headline-grabbing matters later on but given the long-overdue but underwhelming increase in share price at the time or writing, it is worth remembering that Primorus is not a one trick pony.
We find ourselves in early 2020 with a diverse and growing portfolio, primarily in unlisted technology and energy companies. Our 5 largest investments by deployed capital are Engage Technology Partners (£1.5m), WeShop (£875,000), Greatland Gold PLC (£625,000), TruSpine (£500,000) and Fresho (circa £260,000).
On top of our direct equity investments we sometimes add to our balance sheet through a use of debt investing that generates interest and picking up equity options. A good example of this was the Zuuse Series B investment where the outlay was returned to treasury and interest in fully paid shares and a significant number of in-the-money options (compared to last raise) being sent to the balance sheet.
We do also have shares in publicly listed companies in an effort to increase the liquidity and look through value of the portfolio. Sometimes these are very small investments made to effectively manage cash and add incrementally to the balance sheet through opportunistic means.
We may also sometimes identify something special that we believe represents an opportunity in a listed company that has the potential to make an outsized contribution to our shareholders. Clearly our investment in Greatland Gold PLC is an example of this.
So, the question really is what should our share price be if the core portfolio of unlisted investments is better recognised? I believe many of our investments have the potential to, or already have, eclipsed even the Greatland Gold investment in terms of performance and as demonstrated in 2019, many of our investments can be exited in the absence of a public quotation.”
Primorus driven by Greatland success
Greatland Gold have been successful over the last few weeks, and have seen a positive period of trading. In December, the firm said that it had identified mineralization at its mine in Tasmania, Australia. The firm said 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 programme was designed to test the main zone of gold mineralisation and results to date have confirmed broad widths of gold mineralisation, Greatland said. In addition, two further holes were drilled for around 670 meters to test the new targets identified by a 3D induced polarisation survey at Firetower East, approximately 500m east of Firetower. Shares in Primorus Investments PLC trade at 3p (-1.67%). 11/2/20 12:40BST.China New Energy unaffected by coronavirus as confidence remains for 2020 trading
China New Energy Ltd (LON:CNEL) have seen their shares lifted by over 5% following a strong second half performance.
The firm said that it had traded consistently in the second half of 2019 and gave shareholders reassurance over current tensions in China.
It is no doubt, that shareholders would have been worried about the firm’s performance as the coronavirus continued to spread across China and death tolls continue to rise.
It seems that China New Energy have managed to overcome struggles in the second half of their financial year leading to shares in green today.
Notably, the firm also gave an update today saying that it does not expect the coronavirus to hinder performance in the first few months of trading in 2020.
Notably, the ethanol production system provider said its performance in the six months to December 31 is expected to be ahead of that for the six months to June 30.
In the six months to June 30, China New Energy’s pretax profit rose to CNY27.1 million, from CNY8.1 million, on a revenue that surged to CNY163.9 million.
On a great note for shareholders, the firm said that 2019 total revenue is expected to be at its highest figure since it was first listed in 2011.
Chair Yu Weijun said: “I am proud of our team for both supporting our local community and providing business continuity during this challenging time. The macroeconomy for our industry remains unchanged and, as we enter 2020 with a strong order book, we remain confident that the business will have continued success in 2020 and beyond. This will be detailed in our annual report which we expect to release in the first quarter of 2020.”
The firm has made an ensured effort to try and stop the outbreak of coronavirus in China, as the death toll continues to rise.
The firm said: “As widely reported in the press, business activities in China are being disrupted by the Coronavirus outbreak and, whilst the Company does not currently believe this will cause a significant financial impact in 2020, the Board of CNE would like to provide shareholders with further information to understand the situation as it relates to CNE.
The Company and its employees have been playing an active role in supporting the local community with the eradication of the novel coronavirus. On 30 January 2020, the Company donated and distributed 5 tons of medical grade alcohol (75% abv ethanol produced by CNE clients) to local hospitals to assist with disinfection. This was distributed to 17 local hospitals including: First Affiliated Hospital of Sun Yat-sen, the Second People’s Hospital of Guangdong Province and the Guangdong Maternal and Child Health Hospital. Whilst the Company’s clients mostly produce ethanol for renewable-fuel and potable markets, this illustrates the continuing demand for medical grade ethanol for sanitary applications.”
Shares in China New Energy trade at 2p (+5.84%). 11/2/20 12:24BST.
Total SA expand into Spanish renewables market with two deals
Total (EPA:FP) have told the market that they have expanded into the Spanish renewables market on Tuesday.
The French titan said that it had agreed two deals to add two gigawatts of solar power to its portfolio and operations, as it makes an ensured effort to diversify into the renewables sector.
Total said that the deals have been struck with Spanish firm Powertis and Solarbay Renewable Energy.
Figures and statistics are yet to revealed for the deals however Total said that they would be paying fees to the firms at agreed steps during the project commencement.
Total have notably set a target for their generation capacity of 25 giggawatts by 2025, and this deal follows deals in India and Qatar.
Under the terms of the deal, the respective partners will establish a joint venture to develop solar projects in Spain, and could be a point of revolution for the French titan.
“Spain benefits from a solar resource that is unparalleled in Europe. Its photovoltaic market is one of the most dynamic in Europe, with an expected capacity increase from 6 GW to nearly 40 GW by 2030,” Julien Pouget, Total’s senior vice president for renewables, said in a statement.
Notably, Total Solar will acquire 100% of solar projects being developed by Solarbay in the Andalusia, Aragon and Castile-La Mancha regions of Spain, representing total capacity of up to 1.2 GW.
The projects and operations are set to commence at the end of 2020.
Total and Shell expand into renewables
A few weeks back, oil major Shell (LON:RDSA) also purchased a French renewables firm in an attempt to diversify into environmentally friendly policies and operations. The firm said that they had moved to purchase French wind farm specialist EOLFI as part of its plans to expand into the oil major’s electricity business. EOLFI have focused largely on solar and wind energy operations – including a specialism in offshore wind farms. Shell have big aims to diversify out of oil and gas into renewable energy, and this move is a bold statement to competitors. Shell want to become the world’s largest electricity company and expects to invest £1.6 billion to $3 billion a year — nearly 10% of its overall spending — on its power division by 2025. Many multinationals are now seeing the value of moving into the environmental friendly operating arena. The move from Total will come as a double benefit, first to expand operations and widen their network and secondly it represents a real chance for them to meet their environmental goals which will please shareholders.JD Sports Footasylum merger still under scrutiny from CMA
JD Sports (LON:JD) and Footasylum (LON:FOOT) have been locked in a battle of wills with competition regulators over a potential merger deal, and today there has been an update.
The Competition and Markets Authority have said that this merger would substantially lessen competition in the UK, which has decreased the chance of the deal being completed.
Today, the CMA said that the second phase investigation has found that the deal will produce less competition within the market nationally which would lead to UK consumers paying higher prices, see lower quality of customer service, lower discounts and less choice both online and in store.
“The CMA’s current view is that blocking the deal by requiring JD Sports to sell the Footasylum business may be the only way of addressing these competition concerns,” said Kip Meek, Chair of the independent inquiry group leading the investigation.
“We’re currently concerned that shoppers could lose out after the merger, for example through fewer discounts and less choice in stores and online,”
“This could particularly affect younger customers and students, who shop in JD Sports and Footasylum.”
JD Sports have had this say, saying that the verdict by the CMA was “fundamentally flawed”.
The CMA recognized that Footasylum only holds a 5% market share, which JD argued meant that this transaction is small in the relative size of JD Sports and the overcrowded market place.
JD added that they expect Footasylum will contribute less than 2% of the Group’s earnings in the year to January 2020 which, after a robust post-Christmas sales period
Peter Cowgill, Executive Chairman of JD Sports Fashion Plc, commented:
“The CMA’s provisional decision is fundamentally flawed and demonstrates a complete misunderstanding of our market to an alarming extent, given its six-month review.
“The competitive landscape described by the CMA is one which neither I, nor any experienced sector analyst, would recognise. Just take a walk down any major UK high street or search for Nike or adidas trainers on Google and you can see for yourself how competitive this marketplace really is.
“The CMA’s provisional findings do not reflect the objective evidence, with excessive weight being placed on surveys asking hypothetical questions of a small sample of selected customers equivalent to less than 25% of the footfall of one JD store in Manchester for one week, rather than assessing the reality of how consumers actually shop on a national scale.
“When the Group made its offer in March 2019, it was our intention to support Footasylum and its employees to grow the business and increase the quality, range and choice of products available to customers.
“We remain convinced that a combination of the two businesses would provide significant long-term benefits to customers, colleagues and brand partners, while maintaining Footasylum’s presence on the high street as the music-inspired casual retailer which it is today.”
British Pound finds optimism following December Economic Growth
The British Pound has appreciated on Tuesday following positive reports of UK Economic Growth in December.
The data from the ONS, painted a positive picture on Tuesday where December was a positive month for the UK economy, however on a quarterly basis economic growth remained flat.
Despite quarterly growth remaining flat, it seems that there was not much hope in the first place as this matched both analyst and market expectations.
Annual GDP for the fourth quarter was 1.1% which showed progression from the 0.8% figure that expectations had set out before the update.
On that note, the British Pound has seen highs today of 1.1858 against the Euro and is currently seeing a 0.0237% appreciation, which currency traders will be hopeful about considering the volatile nature of the British Pound.
Notably, on Tuesday the pound has seen lows of 1.1821 which was a dip from yesterday’s closing price of 1.1834.
The Pound will expect fluctuations across the next few months, much is happening in the world and it seems that Brexit is continuing to take its toll as PM Johnson continues to fight legislators in Brussels on a Brexit withdrawal deal.
The British Pound found optimism today following a positive period of Economic Growth, where gross domestic product grew 0.3% on a monthly basis, reversing a 0.3% decline seen in November and above consensus forecasts for a 0.2% rise.
“Although there is some evidence, both externally and in this dataset, that there has been stockpiling taking place in late 2019 ahead of the second planned EU exit date in October, initial estimates indicate that this was to a lesser degree than that taking place ahead of the original planned EU exit date in March,” said ONS.
The Pound will still see much turbulence over the next few months, and the ONS said that UK GDP was “particularly volatile” in 2019.
Despite the ongoing crisis with the coronavirus, combined with stunted Brexit negotiations it seems that currency traders are staying cautious and on edge as the Pound ebbs and flows everyday as negotiations and global events unfold.
William Hill agree deal with CBS Sports as digital expansion plan thrives
William Hill (LON:WMH) have announced that they have agreed a deal with CBS Sports in the US.
William Hill said that they have agreed a strategic partnership with CBS to be an exclusive book and wagering data provider as part of their plans to diversify into foreign markets.
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.
“We’re thrilled to launch this momentous partnership, which will allow us to deepen our investment and further extend our leadership in delivering multi-platform sports wagering content, while providing William Hill with unprecedented reach for their market-leading betting platform as they continue to grow their industry leading US business,” said Jeffrey Gerttula, executive vice president & general manager of CBS Sports Digital.
“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. “Now we have exclusive media, branding and promotional rights across CBS’ leading digital sports properties, to take the William Hill brand further and faster in the US.”
William Hill start 2020 strongly
In January, the firm also updated the market by saying that they expect profits to be ahead of expectations. In their trading update, the firm said that adjusted operating profit from continuing operations is expected to be in range of £143 million to £148 million, ahead of market and management expectations. The firm said that favorable sports results allowed the strong end to the year, which will please shareholders. Initial guidance was in the range of £50 million to £70 million, as the firm alluded to “favorable sporting results in December, above the long term gross win margin range”. Online once again grabbed the headlines as this sector grew for the fourth consecutive quarter, whilst weakness in gaming net revenue was offset by a strong sporting gross win margin, the bookmaker said. The deal with CBS should place William Hill in strong footing within the US Sports broadcasting market, and drive their plans to grow using digital platforms and networks. Shares in William Hill trade at 184p (+3.56%). 11/2/20 11:17BST.Marks and Spencer appoint current Greencore CFO
Marks and Spencer Group PLC (LON:MKS) have appointed current Greencore Group PLC (LON:GNC)’s Chief Financial Officer in a similar role.
Marks and Spencer have said that interim CFO Said Surdeau will remain with the firm, as they look to help Eoin Tonge from Greencore adjust and transition into his new role.
Marks and Spencer said that Tonge has held a few different roles, and has been with Greencore since 2016. Prior to this he was the MD of the Grocery Business for two years and was previously the Chief Strategy Officer from 2009-2014.
Steve Rowe commented, “Eoin’s appointment concludes a rigorous search for a world-class finance director. He brings in-depth knowledge of food, as well as strategy and operations, and is another addition to the very strong management team we are building to transform M&S.”
Eoin Tonge commented, “Marks & Spencer is a brand that I have admired as a customer as well as a supplier for some time. I’m excited to be joining the Board and management team to drive forward the transformation of the business, realise its full potential and make it special again.”
Need for change at Marks and Spencer?
Marks and Spencer have not exactly had the most easy of times in the British retail market over the last few months. In January, the firm saw its UK sales decline leading to shares crashing. The FTSE 250 listed firm said that performance has seen improvements on a like for like basis, however total sales declined in its Clothing and Home sector. Notably, the period mentioned includes the festive holidays however British supermarkets seemed to have lost ground. In the 13 weeks period which ended December 28 the firm said that its total UK sales dipped 0.6% year on year to £2.77 billion, however on a like for like basis this was a 0.2% rise. Total sales were 0.7% lower at £3.02 billion, and this includes its international unit which saw a 2.3% fall in sales to £251 million. The British supermarket mainly attributed its growth in UK trading to food unit, where sales climbed 1.5% year on year to £1.7 billion. Notably in the food unit, the firm saw a 1.4% rise on a like for like time scale. The change of directorate may come at a good time for Marks and Spencer, as it seems that the firm is facing a tricky period as it was recently demoted out of the elite FTSE 100. Shares in Marks and Spencer trade at 179p (-1.62%). 11/2/20 11:05BST.Ocado shares jump 4% despite wider pretax loss reports
Ocado Group Plc (LON:OCDO) have seen their shares jump over 4% as the firm reported revenue growth in its Tuesday update.
Ocado said that revenue growth was driven by increased demand in the last few months of trading, however its loss widened in its recently ended financial year.
The FTSE 100 lister said that pretax loss had widened across its financial year. The loss widened to £214.5 million from the £44.4 million figure a year ago, which was attributed to higher operating expenses.
Breaking this down further, the firm said that administrative expenses grew substantially by 88% to £314.2 million year-on-year.
Notably, distribution costs rose 18% to £571.8 million, which were the two biggest contributors to the widened loss reported this morning. Finance costs also doubled to to £30.9 million from £14.7 million one year ago.
Following a hazard in February 2018, where a fire destroyed one of their Andover customer fulfillment centers, this led to lower capacity to operate. However, this was somewhat compensated for when it agreed a a deal with Wm Morrison Supermarkets PLC (LON:MRW) to withdraw from the Erith customer fulfilment centre.
On a better note, Ocado reported revenue growth of almost 10% during the year from £1.6 billion to £1.76 billion which was driven by higher order numbers and strong consistent trading.
Looking forward, Ocado speculated that it is expecting revenue growth between the range of 10% to 15% in its current financial year.
Tim Steiner, Chief Executive Office commented:
“We are pleased to report results which show strong momentum in the business. Although statutory results reflected a combination of factors, including the impact of the Andover fire, the underlying performance of Ocado Retail and the successful growth of Ocado Solutions were very encouraging.
Our progress over the last twelve months, which includes signing our eighth and ninth Solutions clients, Coles in Australia and Aeon in Japan, and successfully maintaining strong growth post-Andover, has demonstrated many of Ocado Group’s most important characteristics: resilience, innovation, focus and execution. It is these qualities that will enable us to continue to develop the Ocado Smart Platform to meet the evolving needs of our partners at the cutting edge of online grocery retail.
The first half of this year will see a new milestone for Ocado Group; the opening of the first customer fulfilment centres for our international partners. These state-of-the-art robotic facilities are a core part of an end-to-end solution embracing automated fulfilment, an intuitive and easy to use webshop, and hyper-efficient last-mile delivery which will enable Sobeys and Groupe Casino to deliver the same outstanding customer experience to consumers in Canada and France as Ocado Retail does today here in the UK.
The landscape of grocery retailing globally is changing. We are excited to be able to play a leadership role through Ocado Retail, our joint venture with M&S, and through our Solutions partnerships, as we fulfil our mission of “changing the way the world shops”.