TP Group positions itself to disturb space and security sectors

Professional services and technology company TP Group PLC (LON: TPG) posted a positive update for the first half, on its position in the global technological solutions market.

The Company said that developments in its Artificial Intelligence technology allowed it to compete with the largest tech players in regard to intelligence and security applications.

TP Group added that its global reach, customer base, technology profile and space industry presence were furthered by a tech agreement with Battelle Inc. and the acquisition of Sapienza Consulting Holding BV.

TP Group comments

The Company’s statement continued with the following outlook, “In the first half of 2019 the Group has established positions in new and emerging systems and equipment. We are providing innovative solutions for life-support, crew habitation and renewable energy systems in a range of environments. This has led to a significant increase in our sales pipeline as our global customers rely upon these systems and equipment for their performance and security.”

“The Group is now well placed to explore the well-funded and highly active US space and defence sectors and continues to evaluate further strategic partnership and acquisition opportunities, whilst also continuing to drive underlying organic growth.”

“The Board remains confident in current trading and expects the Group to deliver full year results in line with market forecasts.”

Investor notes

The Company’s share price dipped 1.89% or 0.12p following the update, down to 6.50p a share 16/07/19 11:12 BST. Elsewhere in the tech sector, there were updates from; Mobile Streams Plc (LON: MOS), Sophos Group plc (LON: SOPH), MiriAd Advertising plc (LON: MIRI), Zoo Digital Group plc (LON: ZOO), Vela Technologies Plc (LON: VELA), Remote Monitored Systems PLC (LON: RMS) and Tekmar Group Plc (LON: TGP).

Bushveld Minerals posts resource estimate for Brits Project

Vanadium producer Bushveld Minerals Limited (LON: BMN) provided its maiden Mineral Resource estimate for the Brits Vanadium Project (the “Brits Project”). The Brits Project is located in South Africa and is directly along strike from the Bushveld Vametco Alloys Mine (Bushveld-Vametco), which as this update revealed, contains a higher grade of vanadium than this latest Project. The Company reported aggregate inferred and indicated mineral resources across all seams of 66.8Mt at an average grade of 1.58% vanadium in magnetite; this was at a cut-off grade of 20% in whole rock for 175,400 tonnes of contained vanadium.

Indicated Mineral Resources tonnages stand at 44.9Mt with an average grade of 1.59% for 115,600 tonnes of contained vanadium across all three seams.

The Lower Seam has a cut-off grade of 20%, with 55.5Mt at an average grade of 1.58% vanadium in magnetite for 1237,000 tonnes of contained vanadium. This makes up approximately 83% of the total Mineral Resource.

Bushveld comments

The Company’s statement continued,

“A geological trend of decreasing grade in vanadium for magnetite-rich layers from west to east in the Bushveld Complex accounts for the lower grades on the Brits Project in comparison to the grades at the operating Vametco Mine.”

“The Mineral Resource is reported up to a depth of 150m below surface and based on the drilling on the western and central blocks of the farm Uitvalgrond Portion 3 which extends over a strike length of approximately 1.65km to the most eastern fault where the last line of drilling was completed. As such there is potential to increase the resource on the remaining eastern unexplored portion of the farm on a strike length of 1km.”

Fortune Mojapelo, CEO of the Company, commented,

“We are pleased to be able to report solid results confirming that we have a high-quality asset at the Brits Project, where its average grade of 1.58% V2O5 in magnetite is among the highest in the world.”

“This represents an important step in the development of Brits – as we recently detailed our path to producing over 8,400 mtV per annum and Brits provides the optionality for additional ore feed for the Vametco plant and, if required, concentrate feed for the Vanchem plant.”

Investor notes

The Company’s shares are trading down 0.48% or 0.11p to 23.88p a share 16/07/19 10:56 BST. Analysts from Peel Hunt reiterated their ‘Buy’ stance on Bushveld Minerals stock. Elsewhere in the mining and minerals sector, recent updates have come from; Kavango Resources PLC (LON: KAV), Anglo Asian Mining plc (LON: AAZ), Anglo Asian Mining plc (LON: AAZ) Pan African Resources (LON: PAF), Keras Resources PLC (LON: KRS), Jubilee Metals Group PLC (LON: JLP), Ariana Resources plc (LON: AUU) and Caledonia Mining Corporation Plc (TSE: CAL).

Trinity E&P issues production and operational update

Trinidad and Tobago focused oil exploration and production company Trinity Exploration and Production PLC (LON: TRIN) posted positive updates on average production and an operational update on its drilling programme. Trinity Exploration said that average production volumes for H1 2019 stood at 3,008 bopd, up 8.6% from the 2,771 bopd for H1 2018. For the first quarter, average production stood at 3,020 bopd, and in the second quarter the average volume was 2,996 bopd. The Company added that depending on oil prices and investment, they expected average production for 2019 to stand between 3,000 and 3,300 bopd. Current output is expected to be bolstered by the 2019 drilling programme commencing, with the Company’s rig mobilised and the first well set to be spud on July 18 2019.

Cash balance is up on-year, from $12.3 million at 31 March 2018, to $17.8 million at 30 June 2019.

Trinity Exploration and Production

Bruce Dingwall CBE, Executive Chairman of the Company, commented,

“Our strong balance sheet and robust base production mean that we are delivering our financial and production targets, and at the same time, ensuring that we can take advantage of any strategic opportunities that may arise. We remain focused on maximising output and returns for shareholders and continue to evaluate the best ways of protecting and enhancing those returns through prudent treasury management, industry leading operating practices and technical innovation. Given the strength of our business model, the ongoing work programme and visibility afforded by our balance sheet, we continue to face the future with confidence.”

Regarding its forecast for the rest of the year,the Company’s statement read,

“The second half of the year is expected to be extremely active for the Company with the recommencement of the onshore drilling programme. With the Group’s ongoing and continued focus on controlling costs and development of its assets, it remains well placed to provide significant upside to shareholders both in terms of production and returns. Within the H2 drilling campaign the Company will be drilling its first HAW, the FR 996 well. This well is the first of a series of HAW wells that the Group expects to drill and complete in the near term. Although not commonly deployed onshore in Trinidad, HAWs are now the industry standard in many basins around the world and have been modelled by the Company to yield initial production rates and reserves of more than 2x those achieved from conventional vertical wells.”

“The Group’s focus for the medium term continues to be delivering the first phase of the TGAL development, which has the potential to deliver standalone peak production rates in the range of 5,000 – 6,000 bopd. As the TGAL project matures, discussions on the project, and on the Galeota licence as a whole, are generating good traction and momentum with the supply chain, the regulators and with Heritage, the Group’s partner.”

Investor notes

The Company’s shares dipped 4.84% or 0.49p to 10.62p a share 16/07/19 10:48 BST. Elsewhere in the oil and gas sector, there have been updates from; Union Jack Oil PLC (LON: UJO), Nu-Oil and Gas PLC (LON: NUOG), PetroTal Corp (CVE: TAL), Hurricane Energy plc(LON: HUR), TLOU Energy Ltd (ASX: TOU), Eland Oil and Gas PLC (LON: ELA), IGas Energy PLC (LON: IGAS) and Anglo African Oil and Gas (LON: AAOG).

Sports Direct shares crash after results delay

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Sports Direct said on Monday that it will be delaying the publication of its preliminary results, sending shares in the business crashing. Shares in Sports Direct (LON:SPD) were trading roughly 10% lower on Monday following the announcement. Sports Direct said that the reasons for the delay in the publication of its results are due to the complexities surrounding the integration of House of Fraser, which it purchased last year. The company also blamed increased scrutiny of its accounts. Sports Direct said that its results will be delayed beyond the date it had previously anticipated, which was originally expected to be later this week. “The reasons for the delay are the complexities of the integration into the Company of the House of Fraser business, and the current uncertainty as to the future trading performance of this business, together with the increased regulatory scrutiny of auditors and audits including the FRC review of Grant Thornton’s audit of the financial statements of Sports Direct for the period ended 29 April 2018,” Sports Direct said in a statement. “These factors have led to a need for the Company to compile more information than in previous years for the audit of period ended 28 April 2019, and has therefore impacted on preparations for and responses to increased challenges in connection with this audit,” the business added. House of Fraser was purchased by Mike Ashley’s Sports Direct last August in a £90 million deal. Before the deal, the department store had announced that it was going into administration. With the UK high street crisis taking its toll, several retailers face tough trading conditions along with store closures and staff cuts. Almost 2,500 high street shops closed in 2018, according to PwC research complied by the Local Data Company. Banks and financial Services led the figures, closely followed by fashion retailers. Shares in Sports Direct International plc (LON:SPD) were trading at -9.57% as of 16:36 BST Monday.

Union Jack Oil positive update on Biscathorpe Prospect

UK focused hydrocarbon producer Union Jack Oil PLC (LON: UJO) reiterated Egdon Resources’ announcement on the positive update of their joint Biscathorpe-2 exploration wel at the PEDL253 licence, of which Union Jack Oil holds a 22% interest. Westphalian and Dinantian cuttings samples, from the Biscathorpe Prospect, displayed good quality non-biodegraded hydrocarbon extracts. The Company added that the cuttings were comparable to those of a known oil-bearing Westphalian interval.

It is thought there is a live oil column from 1,980 metres to 2,015 metres at the Dinantian interval, with the likelihood of residual oil below.

“Data evaluated at the base of the analysed section, and wellsite gas readings, are also suggestive of possible additional hydrocarbon pay below 2,133 metres.” The Company’s summary concluded.

Union Jack Oil statement

The Managing Director of Egdon – who published the results – stated,

“The results of the revised petrophysical analysis and the APT Report have upgraded the Biscathorpe-2 well result, confirming the likely presence of a 35 metre column, of good quality oil, within the Dinantian interval. This along with the elevated gas readings and oil shows over an extended interval in the well are indicative of proximity to an effective petroleum system and validate the potential that exists within the PEDL253 licence area.”

“The primary target reservoir at Biscathorpe, the Basal Westphalian sandstone, was likely absent at the Biscathorpe-2 location and remains untested by the well. Further technical work is planned, including the reprocessing of the existing 3D seismic data, prior to deciding the next steps for the project which could include a side track of the suspended Biscathorpe-2 well.”

“We look forward to updating shareholders further once the results of the 3D reprocessing are finalised.”

David Bramhill, Executive Chairman of Union Jack, responded to the update,

“The APT Report confirms the likely presence of hydrocarbons in the Westphalian and Dinantian, interpreted to be oil, over a potentially large interval, and highlights the potential upside we see within the PEDL253 licence area. Biscathorpe, in the opinion of Union Jack’s management, remains one of the UK’s largest onshore un-appraised conventional hydrocarbon prospects.”

“The confirmation within the APT Report of the likely presence of good quality API gravity hydrocarbons within the Westphalian and Dinantian, has significantly upgraded the Biscathorpe-2 well result and enables Union Jack to view the prospectivity of the area around Biscathorpe-2, and the overall potential of PEDL253, much more favourably.”

“In our opinion, the Basal Westphalian sandstone that was the primary target of the Biscathorpe-2 well, remains untested, as do the hydrocarbons unexpectedly encountered within the Dinantian.”

“Union Jack and its joint venture partners will now undertake further technical work before being able to confirm next steps in relation to a possible future side track of the Biscathorpe-2 well.”

Investor notes

The Company’s shares rallied 1.89% or 0.005p during trading on Monday, up to 0.27p a share 15/07/19 15:23 BST. Analysts from SP Angel reiterated their ‘Buy’ stance on Union Jack Oil stock. Elsewhere in the oil and gas sector, there have been updates from; Nu-Oil and Gas PLC (LON: NUOG), PetroTal Corp (CVE: TAL), Hurricane Energy plc(LON: HUR), TLOU Energy Ltd (ASX: TOU), Eland Oil and Gas PLC(LON: ELA), IGas Energy PLC (LON: IGAS), Anglo African Oil and Gas (LON: AAOG) and Nostra Terra Oil and Gas plc (LON: NTOG).

SIMEC Atlantis announces waste pellet power station conversion

Owner and operator of sustainable energy projects SIMEC Atlantis Energy (LON: SAE) announced that Uskmouth power station is being converted from coal to waste fuel pellet power. The power station in Newport, South Wales, is being converted into a 220MW baseload power plant and is expected to commence operations in 2021. The pellets being used are derived largely from plastic waste that would otherwise be sent to landfill. Front End Engineering Design tests have been carried out on the system, which displayed 100% stable combustion from waste derived pellets and performance within ‘expected parameters’. The Company stated, “A contract tender has been issued for the design, supply, installation and commissioning of the full combustion system, including large scale combustion testing.”A review of the plant life extension and return to service for all areas of the existing plant has been completed by WSP and RJM, enabling the commencement of intrusive return to service surveys for the 220MW conversion.” In June, N+P Group started commissioning a pellet facility in Teesport, to supply the Uskmouth facility. Three further pellet producing facilities are planned to supply the Uskmouth power station with fuel. SIMEC Atlantis said environmental planning and permitting is progressing well and the project has reached a ‘design freeze’ for Environmental Impact Assessments.

SIMEC Atlantis Energy comments

David Taaffe, Director of Project Delivery at SIMEC Atlantis Energy, stated,

“We are extremely pleased with the progress being made at the Uskmouth conversion project which is on track to become operational in 2021.”

“Today we are announcing a significant milestone for the project. FEED tests and studies have been successfully completed, with the largest test burn of the waste derived fuel pellets completed to date, and tenders have been issued for the next phase of the conversion.”

“Once operational, Uskmouth is expected to generate 1,500GWh of sustainable energy every year, enough to power just under 500,000 UK homes. The new fuel pellets provide a use for waste which might otherwise be destined for landfill or incineration, instead of efficient electricity production.”

“This is the world’s first conversion of a power station from coal to 100% waste derived fuel and the project will be the blueprint for other conversions around the world. We are already receiving high levels of interest from other asset-owners looking to replicate the Uskmouth conversion process.”

Tim Cornelius, Chief Executive Officer of the Company, commented,

“We are ramping up investment in the Uskmouth conversion project this year as it is such an important project to our shareholders, the environment and the Welsh economy. The Uskmouth team are world class. This project has become an important blueprint for the plans of coal fired asset owners and policy makers around the world. It will also be transformational for Atlantis in terms of revenue and cash flow generation.”

“The regeneration and repurposing of coal fired power stations to consume waste derived fuel and deliver baseload, low cost electricity is the utopian industrial story for governments around the world.”

Investor notes

The Company’s shares have dipped 0.88% or 0.13p to 14.62p a share 15/07/19 13:49 BST. Elsewhere in the renewable energy sector, there have been recent updates from; Aquila European Renewables Income Fund (LON: AERI) PowerHouse Energy Group (LON: PHE), The Renewables Infrastructure Group Ltd (LON: TRIG), Tekmar Group Plc (LON: TGP) and Remote Monitored Systems PLC (LON: RMS).

Mobile Streams shares dive as yearly revenues fold

Mobile content distributor Mobile Streams Plc (LON: MOS) saw its share price dive on the release of its trading update, which revealed a disappointing set of results for the full year ended June 30 2019. The Company posted an Ebitda loss of £1.0 million, which narrowed from £1.2 million for the same period year-on-year. Further, cash and cash equivalents stood at £0.13 million, which was an improvement on the £1.0 million as of June 2018. However, unaudited revenues fell considerably on-year, from £3.1 million in 2018 to £1.3 million by June 2019.

Mobile Streams comments

In its statement, the Company updated investors on its performance in Indian and Argentinian markets, as well as its cost rationalisation efforts, “Trading in India has been impacted by the consolidation of the mobile telecoms operators within the region. Furthermore, a number of Mobiles Streams’ partners have generated lower revenues during the year following the Vodafone-Idea merger. Vodafone and Idea remain as individual entities with regards to the Company’s relationship with them, this development has prevented Mobile Streams from increasing its business with these parties.” “Revenue in Argentina declined significantly during Q4 primarily due to the devaluation of the Argentine Peso (13% in the last quarter), performance was also impacted by the limited funds available for working capital purposes.” “As announced on 12 April 2019, the board of Directors (the “Board”) have undertaken a comprehensive cost-cutting plan during the financial year in response to the significant reductions in revenue. This has resulted in a significant reduction in headcount, rationalisation of the Company’s main operating centre in Argentina as well as reducing operating expenditure in the UK, US and India. The Company’s CEO and both Non-Executive Directors have volunteered a partial salary deferral of 50% of their respective remuneration.”

Investor notes

The Company’s shares recovered from their low of 0.13p and are now down 26.67% or 0.06p at 0.16p a share 15/07/19 10:21 BST. Elsewhere in the tech sector, there were updates from; Sophos Group plc (LON: SOPH), MiriAd Advertising plc (LON: MIRI), Zoo Digital Group plc (LON: ZOO), Vela Technologies Plc (LON: VELA), Remote Monitored Systems PLC (LON: RMS), Tekmar Group Plc (LON: TGP) and Redcentric PLC (LON: RDN).

Kavango Resources rallies on new prospecting licence

Botswana-focused mineral exploration group Kavango Resources PLC saw their share price rally following its announcement that it had acquired a prospecting licence adjacent to its current licence at Ditau PL.

The new PL covers a 916.4km squared area to the south west of the current Ditau licence. The Company added that,

“It includes the extensions of the Ditau geological and geophysical structures that have potential for base metal mineralization.”

Kavango Resources comments

Michael Foster, Chief Executive Officer of Kavango Resources, stated,

“Extending our land position at Ditau following an assessment of the Company’s recent work provides Kavango with an important strategic ground holding in this prospective area.”

“Additionally we believe that this new licence could be instrumental in the farming-out of this project to an industry partner. This is currently Kavango’s preferred option. Our main focus remains the Kalahari Suture Zone (“KSZ”) structure in southwest Botswana where drilling is expected to commence later this quarter”.

Discussing its exploration model, the Company stated,

“Kavango’s exploration model is based upon the search for magmatic massive sulphide orebodies buried beneath up to 200m of overburden. The identification of drill targets follows a carefully constructed exploration program specifically developed by the Company for exploration in areas covered by Kalahari and Karoo sediments and sands.”

“The exploration program is initiated by identifying the location of magmatic intrusive rocks from an analysis of the regional magnetic surveys published by the Botswana Government. This is followed by an airborne electro-magnetic survey (AEM) carried out over the magnetic anomalies that have signatures indicating the presence of intrusive rocks at depth. By using the latest generation of low frequency helicopter-borne EM surveying, conductors lying below the Kalahari/Karoo cover can be identified for further investigation. These conductors can be tested on surface by very high sensitivity soil sampling*, which can detect metal ions transported from buried, metal rich massive sulphide deposits associated with the emplacement of magmatic intrusive rocks.”

Investor notes

The Company’s shares have rallied 7.14% or 0.25p in morning trading, to 3.75p a share 15/07/19 13:17 GMT. Elsewhere in the mining and minerals sector, recent updates have come from; Anglo Asian Mining plc (LON: AAZ), Anglo Asian Mining plc (LON: AAZ) Pan African Resources (LON: PAF), Keras Resources PLC (LON: KRS), Jubilee Metals Group PLC (LON: JLP), Ariana Resources plc (LON: AUU), Caledonia Mining Corporation Plc (TSE: CAL) and Regency Mines Plc (LON: RGM).

Tertiary Minerals rallies on zinc mineralisation at Nevada Project

Mineral exploration and production Company Tertiary Minerals plc (LON: TYM) has seen its shares rally during morning trading, following its announcement that it had discovered two zones of zinc-silver mineralisation at its recently acquired Paymaster Polymetallic Project in Nevada. The Company said that the two zones – the Valley Prospect and the East Slope Prospect – would now undergo follow-up exploration and drilling.

Preliminary observation of the Valley Prospect revealed a thick skarn zone potentially 350 metres long and 8 metres thick. A rock sample taken from historic shaft spoil assayed 7.5% zinc, 4.3% lead and 180 g/t of silver.

Observation of the East Slope Prospect showed a 650 metre zinc soil anomaly ( estimated 100-250 ppm zinc), surrounding a previously sampled outcrop of zinc-silver cobalt bearing skarn mineralisation. This included a 175 metre long 250-500 ppm zinc soil anomaly. Past rock sample assays display up to 20.9% zinc, 0.11% cobalt and 198 ppm silver.

Infill soil sampling and trenching has been proposed to better define the drill target.

Tertiary Minerals comments

The Company’s Managing Director, Richard Clemmey, attached the following comments to today’s update,

“We are pleased to be reporting these two new targets as a result of follow up of our soil sampling results at the Paymaster Project and to be closing in on drill targets at such an early stage in the life of the project. This follows on from our recent acquisition of the Pyramid Gold Project, also in Nevada, where drill targets for gold are already defined.”

“These results demonstrate how value can be added at low cost as we build up a new portfolio of base and precious metal projects in the western USA.”

On the Valley Prospect, the Company’s statement contineud by saying, “During the recent field reconnaissance, a large and potentially thick zone of skarn mineralisation was located on the edge of a broad valley in the central part of the Project area. This zone has an arcuate form with an outcrop length of approximately 350m and an outcrop width up to 8m thick. A single historic prospector’s mine shaft (estimated minimum 200 ft deep) has been excavated within this skarn exposing gossanous skarn in its walls to the full depth visible from surface. A sample taken from the material excavated assayed 7.5% zinc, 4.3% lead and 180g/t silver.” And on the East Slope Prospect, “The East Slope Prospect is defined by a 650m long soil zinc anomaly. Outcrop in this area is limited but the anomaly does include a small exposure of skarn mineralisation where a previous sample returned a grade of 20.9% zinc, 0.11% cobalt and 198 ppm silver.”

Investor notes

Since trading began on Monday, Tertiary Minerals shares are up 6.38% or 0.015p to 0.25p a share 15/07/19 11:39 GMT. Elsewhere in the mining and minerals sector, recent updates have come from; Anglo Asian Mining plc (LON: AAZ) Pan African Resources (LON: PAF), Keras Resources PLC (LON: KRS), Jubilee Metals Group PLC (LON: JLP), Ariana Resources plc (LON: AUU), Caledonia Mining Corporation Plc (TSE: CAL), Regency Mines Plc (LON: RGM) and Acacia Mining PLC (LON: ACA).

Anglo Asian Mining shares dip on lower copper production

Gold, copper and silver producer Anglo Asian Mining plc (LON: AAZ) announced on-year growth but saw their share price dip after noting that copper production volumes had dipped between Q1 and Q2 2019. In its summary, the Company noted that quarterly production dipped between Q1 and Q2, which Anglo Asian attributed to a comparative reduction in copper production by 63 tonnes. This was due to planned mining of lower grade copper ore; the Company expects copper grades to increase for the remainder of the year. Despite this, the Company booked improved production expressed as gold equivalent ounces (GEOs). Q2 production was up 3% year on year, rising to 19,618 GEOs. H1 production was up even further on-year, growing 7% to 39,905 GEOs. The Company added that they posted strong results on cash generation, with $4.6 million in Q2 and $9.3 million for H1 2019. Further, net cash increase from $10.8 million on March 31 2019 to $15.4 million June 30 2019. Anglo Asian also announced

“Backlog of concentrate production now sold due to resolution of logistical issues by off-taker – gross concentrate sales of $7.6 million in Q2 2019.”

The Company is a Central Asian producer with a 1,962 square kilometre production portfolio in Azerbaijan, assembled from Soviet geological data.

Anglo Asian Mining comments

Company CEO Reza Vaziri attached the following insights to today’s statement,

“This is another good quarter’s production with a 7 per cent year-on-year increase in the first half compared to 2018. The production in the quarter was slightly less than the previous quarter due to the planned mining of lower grade copper ore, however, we are expecting copper grades to increase for the rest of the year. The logistical issues in selling concentrate reported last quarter were resolved and the Company had gross sales of $7.6 million of concentrate in the quarter. The Company continues to be a strong cash generator and our net cash increased by $4.6 million in the quarter.”

Investor notes

The Company’s shares dipped 1.95% or 2.4p in morning trading on Monday, down to 120.6p a share 15/07/19 11:26 GMT. Elsewhere in the mining and minerals sector, recent updates have come from; Pan African Resources (LON: PAF), Keras Resources PLC (LON: KRS), Jubilee Metals Group PLC (LON: JLP), Ariana Resources plc (LON: AUU), Caledonia Mining Corporation Plc (TSE: CAL), Regency Mines Plc (LON: RGM), Acacia Mining PLC (LON: ACA) and Arc Minerals Ltd (LON: ARCM).