Kavango Resources shares jump on MOU with LVR GeoExplorers

Jamie Gordon
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7
Kavango Resources shares jump on MOU with LVR GeoExplorers
Copper mining company Kavango Resources PLC (LON: KAV) has seen their share price rally duirng morning trading on Monday, following its signing of a Memorandum of Understanding with Botswana company LVR GeoExplorers, to farm two prospecting licences of the Botswana Kalahari Copper Belt. Exploration of the two sites will commence within four weeks of the Farm-In Agreement. Kavango will act as the manager of the exploration and development of both sites, with the option to withdraw at any time, provided they give a two month notice period. For the first 12 months following the signing of the Farm-In Agreement, the Company will have to spend BWP1.25m (around £92,000) on each licence to acquire a 25% interest – thos has already been allocated within their current budget. Their working interest in either or both licences can increase to 90% provided they take a project through to bankable feasibility.

Kavango Resources comments

Michael Foster, Chief Executive Officer, responded to the update,

“The signing of an MOU with LVR GeoExplorers represents an excellent opportunity for Kavango to acquire an interest in some highly prospective ground in the KCB area, which is now regarded as one of the world’s most promising under-explored copper provinces. We believe that the proposed Joint Venture with LVR represents excellent value for shareholders, who now have the prospect of acquiring an interest of up to 90% in these licences. We will continue to consider other opportunities in this exciting copper province, while our main focus remains the KSZ Project”.

Investor notes

Following the update, the Company’s shares rallied 10.83% or 0.18% to 1.88p a share 02/09/19 09:39 BST. The Company’s p/e ratio and dividend yield are unavailable, their market cap is £2.90 million. Elsewhere in the mining and minerals sector, recent updates have come from; URU Metals Ltd (LON: URU), Resolute Mining Limited (LON: RSG), Bisichi Mining PLC (LON: BISI), Polymetal International Plc (LON: POLY) Cora Gold Ltd (LON: CORA), Glencore PLC (LON: GLEN) and Bushveld Minerals Limited (LON: BMN).

UK manufacturing PMI falls to lowest level since July 2012

Dina Caruso
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0
UK manufacturing PMI falls to lowest level since July 2012
UK manufacturing during August was heavily hit by high levels of widespread economic and political uncertainty, new data on Monday revealed. The GBP/USD is trading below 1.2100 as Brexit uncertainty prevails. The IHS Markit/CIPS Purchasing Managers’ Index (PMI) was at 47.4 in August, down from 48.0 recorded in July and falling to the lowest level since July 2012. According to the research, the level of new export business shrank at the fastest rate in over seven years during the period. Manufacturers have cited global trade tensions, slower world economic growth and Brexit uncertainty as factors contributing to the reduced demand. Additionally, it was reported that some EU-based clients were routing supply chains away from the UK as a result of Brexit. A low level of business optimism was also recorded, connected to the weakening market conditions, signs of a global economic slowdown, Brexit uncertainty and subdued client confidence. “High levels of economic and political uncertainty alongside ongoing global trade tensions stifled the performance of UK manufacturers in August,” Rob Dobson, Director at IHS Markit, which compiles the survey, commented on the data. “Business conditions deteriorated to the greatest extent in seven years, as companies scaled back production in response to the steepest drop in new order intakes since mid 2012,” Rob Dobson continued. “Demand from domestic and export markets both weakened in August, with new export business suffering the sharpest fall in seven years. The global economic slowdown was the main factor weighing on new work received from Europe, the USA and Asia.” Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, also provided a comment: “Soured by the continuing intensely difficult conditions, the sector resorted to some job shedding and increased their own prices as a last-ditch effort against renewed pressure from a weakening pound.” “As Brexit planning intensifies, some firms were resorting to more inventory building whilst others were unravelling their stocks. With some supplies impacted by port delays and poor supplier performance, a creeping dread is descending on the sector that there will be more of these obstacles to come.” Just last week, Boris Johnson asked the Queen to suspend parliament, preventing MPs from blocking a no-deal departure ahead of the extended Brexit deadline.

Cabot Energy shares bounce 31% on financial position update

Jamie Gordon
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3
Cabot Energy shares bounce 31% on financial position update
Canada-focused oil and gas production company Cabot Energy PLC (LON: CAB) today announced three developments in its financial position, which saw its share price jump. The first update was that the company had entered into a non-binding term sheet with a private energy lender, for an asset-level loan facility of up to C$5.0 million. This will fund their ‘Winter Work Programme’.

They also signed a Subscription Agreement worth US$0.3 million, with High Power Petroleum LLC, to fund the commencement of their late ‘Summer Work Programme’.

Finally, they have an Open Offer set to launch in October 2019. High Power Petroleum LLC will participate in the Open Offer for a minimum interest of US$0.7 million.

Cabot Energy comments

James Dewar, Interim Non-Executive Chairman, stated, “We are pleased to have entered into a term sheet to debt-fund the Winter Work Programme and secure equity funding from our supportive majority shareholder, H2P, to fund the Summer Work Programme. On behalf of the Board, I would like to thank H2P for their continued support at this crucial time. We are always mindful of our other shareholders and look forward to providing them with the opportunity to participate in an equity fundraising, via an Open Offer on the same terms, in October. I would like to thank the management team who have worked hard to access non-equity finance in order to minimise further shareholder dilution, which is an endorsement of the quality of both the Company’s management team and the assets’ potential. In late 2019, we intend to further strengthen our capital structure for the remainder of 2019 and the entirety of 2020 once the Summer Work Programme has been successfully executed.”

Investor notes

After jumping almost 43%, the Company’s shares have relaxed to a rally of 31.43% or 1.10p to 4.60p a share 02/09/19 11:39 BST. The Company’s p/e ratio and dividend yield are not yet available, their market cap is £1.79 million. Elsewhere in the oil and gas sector, there have been updates from; Reabold Resources PLC (LON: RBD), Eco Atlantic Oil and Gas Ltd (AIM: EOG), Valeura Energy Inc.(LON: VLU), President Energy PLC (LON: PPC), Mosman Oil and Gas Limited (AIM: MSMN) and Nostrum Oil and Gas PLC (LON: NOG).

Consolidation opportunities for Belvoir

Andrew Hore
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0
Consolidation opportunities for Belvoir

Lettings and estate agency business Belvoir Group (LON: BLV) reports its interim figures on Tuesday. The letting fees ban came into force at the end of the first half so it will have a limited effect on the period.
However, there should be news about how the ban is affecting the business and how the plans to offset that affect are working.
Belvoir is a franchised business and it has more than one franchise brand. They are Belvoir, Newton Fallowell and Northwood. The combined brands make Belvoir one of the largest letting agency groups. This makes it better placed to adapt to changes in regul...

Tony Blair speaks at Westminster as Boris threatens to expel MPs

Jamie Gordon
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0
Tony Blair speaks at Westminster as Boris threatens to expel MPs
With only a limited window of opportunity left for Parliament to block a No-Deal Brexit scenario, both Leave and Remain sides have upped the ante. The divide within the Conservative Party was made deeper than ever this morning, as Boris Johnson favoured the stick as his means of making MPs toe the party line, threatening to remove the whip of any MP voting against a No-Deal during this week’s session. Doing so would effectively be turning his own party into a minority government, and thus manufacturing the need for an election. On the other side, Labour played the next track on its ‘Best of the Noughties’ record. After Alistair Campbell made several appearances across the media over the last year, their divisive ex-front-man Tony Blair, today showed the current leader how to make a convincing and pragmatic speech.  

Stop representing the people, its what they asked for

  After securing a shutdown of Parliament, Boris has gone further in his pro-democracy crusade to secure a one-minded party (nothing more democratic than everyone agreeing – having to politically assassinate any opposition is only a cursory detail).   https://platform.twitter.com/widgets.js Tory MP Antoinette Sandbach was one of the first to react, saying she would vote against a No-Deal this week. “I will be voting against a no-deal Brexit, this is the very last opportunity for parliament to do that because of the prime minister’s prorogation.” She then spoke to Sky News, in response to the threats delivered to her in regard to her political career. “I’ve voted for the deal [the EU withdrawal agreement] three times, this prime minister didn’t vote for that deal three times. “I find it staggeringly hypocritical that he’s threatening to take the whip away. “If that had happened to him when he voted against Theresa May’s deal, he wouldn’t have had the opportunity to stand to be prime minister of this country.” “I feel so strongly about this that I’m prepared to put my job on the line for my constituents.” Offering neither a suitable alternative, nor willing to fully reach a pragmatic cross-party compromise, she attributes some of the blame for the current situation to Labour. “The Labour Party are very responsible for the fact the deal didn’t go through and we didn’t leave on 29 March, together with the prime minister and a quarter of his cabinet.” She finished her statement by saying, “The prime minister should bring back Theresa May’s deal. We know that 29 Labour MPs signed a letter saying that they would vote for it.” “The prime minister and others acted to try and depose Theresa May before that deal could be brought back again.” “Now that parliament is going to be prorogued, as far as I can see the only advantage to that is the fact that deal could come back.”  

Blair says its a trap

  It gives me no pleasure to say that the most cogent and rousing speech in opposition to Brexit has come from Tony Blair. But it should be of little surprise. Like him or loathe him, he was a different breed of politician to the likes of Jeremy Corbyn. Polished, politically sharp, engaging – he is the epitome of a modern politician, as opposed to a well-intentioned activist who has had to face the stark reality that the game of party leadership is bloodthirsty. He told the Westminster procession at the Institute for Government that he normally likes to open his speeches with a few jokes, but that
“I think Brexit’s gone beyond a joke”
He continued, “In the modern history of Britain there’s never a more important moment for politicians to put country before tribe and national interest before self-interest. “We’re numb to the state of our politics. What is happening is shocking, irresponsible and dangerous.” “Our government is ripping Britain out of the EU – by common acceptance the most important change in this country’s affairs since 1945 – in the most extreme form of Brexit imaginable.” “Without an agreement to replace the complicated network of political and commercial arrangements we have built over decades of European membership.” “And it’s doing so without the consent of parliament, but with a deliberate manouevre to curtail it.” “And without the express consent of the British people, relying instead on a one-off plebiscite now over three years ago in which – not for one moment – was it suggested by those advocating Brexit that no deal would be the outcome.” Putting his political acumen on show, Blair told his Labour successor to avoid the ‘trap’ of a general election. “Should the government seeks an election, it should be refused in favour of a referendum.” “I know it’s counter-intuitive for opposition parties to refuse an election, but in this exceptional case it’s vital they do so – as a matter of principle – until Brexit is resolved.” “Brexit is an issue which stands on its own, was originally decided on its own and should be reconsidered on its own.” “The Brexiteers are laying a trap – to seem as if pushed into an election while actively preparing for one.” So, in a move that some would have hoped would bolster the righteousness of the Remain camp, I would wager it made them look weaker by having one of their best showings not from their current leadership, but from a controversial figurehead from a bygone epoch. After Michael Gove hinted that the Cummings-led ultras would simply ignore legislation to block a No-Deal Brexit, today’s discussions help us to realise; the dystopian reality where the man who once boasted we make every Hob-Nob in the world would be our de facto Chancellor, seems ever-closer. https://platform.twitter.com/widgets.js   Other news and macro financial updates have come from; Parliament being prorogued, No-Deal Brexit preparations, UK GDP during the second quarter, the London Stock Exchange Group (LON: LSE), the US-China currency manipulation debacle, and analysts’ outlook for markets and currencies.

Tyman needs to improve efficiency

Andrew Hore
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0
Tyman needs to improve efficiency

Problems in the US have led to forecast downgrades for Tyman (LON: TYMN) and new management needs to sort this out. A strategic review should be completed next year.
Production problems are exacerbating the tougher trading conditions in the construction sector in the US and UK. Trading for some parts of the business could get tougher in the second half.
The shares are trading on a low profit multiple and a high yield, but growth will be hard to come by over the next couple of years.
Interims
North American performance was hit by production inefficiencies and this also hampered customer ser...

Sterling finished strongly against the Euro, No-Deal resistance mounts

Jamie Gordon
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0
Sterling finished strongly against the Euro, No-Deal resistance mounts
As trading closed for the week, sterling finished more confidently than the euro, as hopes remained for the prevention of a No-Deal Brexit outcome. The FTSE’s gains remained fairly subdued and the Dow Jones rose healthily. Spreadex Financial Analyst Connor Campbell had the following to say about the week’s market close, “Sterling appeared eager to end to week – and month – on a positive note, pinning its hopes on a no-deal Brexit being averted.”

“There are a few things the pound could point to this Friday as the catalyst for Friday’s rebound, however unconvincing. Gordon Brown has claimed that the EU will shift the October 31 deadline. There’s a judicial review against the suspension of parliament set to be heard in the High Court next Thursday. And cross-party MPs believe they have the numbers to block Boris Johnson’s plans.”

“So, nothing exactly concrete. However, it was enough – alongside weakness from its rivals – to allow sterling to climb 0.4% against the dollar and 0.5% against the euro. That pushes cable above $.1.222, while leaving it knocking on the door of €1.107 against the single currency.”

“The pound’s rebound had the side-effect of keeping the FTSE’s own gains on the lower-end of what was seen elsewhere. The UK index added 0.4%, sending it to a 2-week peak of 7210; in comparison, the DAX and CAC were up 1% and 0.6% respectively, buoyed by a 3-year low Eurozone inflation reading, one that arguably forces the ECB down a more dovish route.”

“Working with the leftovers of yesterday’s hard-to-justify trade optimism, the Dow Jones rose 100 points, an increase that took it within touching distance of 26500. A good rally from the 26000-nearing lows seen at the start of August, but still a fair way away from the 27300-eyeing prices it was hitting this time last month.”

Boris Johnson, despite reiterating his commitment to reaching a deal, still appears prepared for a no-deal scenario. Despite the efforts of his UK peers from the Remain faction, hope of preventing a No-Deal will likely come from the EU ranks cracking and offering concessions to the Johnson-Cummings-Rees-Mogg trifecta. Other news regarding sterling and macro financial updates have come from; Parliament being prorogued, No-Deal Brexit preparations, UK GDP during the second quarter, the London Stock Exchange Group (LON: LSE), the US-China currency manipulation debacle, and analysts’ outlook for markets and currencies.

URU Metals rallies on mining application acceptance

Jamie Gordon
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4
URU Metals rallies on mining application acceptance
Investor in mineral exploration and development projects, URU Metals Ltd (LON: URU) has seen its share price rally following the acceptance of a Mining Right application submitted by its South African subsidiary, Lesego Platinum Uitloop Ltd. The application pertains to the three prospecting rights that make up the Zebediela Project, and was accepted by the South African Department of Mineral Resources. LPU submitted the application over portions of the farms Uitloop 3 KS, Amatava 41 KS, Bloemhof 4 KS, and Piet Potgietersrust Town and Townlands 44 KS, based in the Mogalakwena local and Waterberg district Municipalities of the Limpopo Province.

Following the decision, the South African DMR will now process the application and the Company must now fulfil the regulatory requirements it has been set.

URU Metals comments

Mr. John Zorbas, CEO, stated,

“[The] acceptance of the mining right application by the DMR significantly moves the project forward in three ways: by consolidating the 3 prospecting rights that made up the Zebediela Project into one right; securing the mineral tenure of the project for a further 30 years and lastly, advances the project one step closer towards development. We remain extremely excited by the highly prospective Zebediela Project, and the acceptance of the mining right application grants us the flexibility to develop the existing nickel resource into a mine, and to continue developing the newly discovered Ni-PGE resource found adjacent to and in the footwall of the existing nickel resource.”

Investor notes

After an impressive rally, the Company’s share price dipped slightly, up 8.20% or 20.50p to 270.50p per share 30/08/19 14:38 BST. Neither a dividend yield, nor a p/e ratio are available for the Group. Elsewhere in the mining and minerals sector, recent updates have come from; Resolute Mining Limited (LON: RSG), Bisichi Mining PLC (LON: BISI), Polymetal International Plc (LON: POLY) Cora Gold Ltd (LON: CORA), Glencore PLC (LON: GLEN), Ariana Resources plc (LON: AUU) and Bushveld Minerals Limited (LON: BMN).

Resolute Mining rides precious metals rally, H1 EBITDA jumps 171%

Jamie Gordon
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5
Resolute Mining rides precious metals rally, H1 EBITDA jumps 171%
Precious metals mining company Resolute Mining Limited (LON: RSG) posted bumper fundamentals during the first half of full-year 2019, with impressive production and financial results. This is only one of many success stories in the precious metals sector this year, with market uncertainty feeding the increased popularity of inverted risk assets. The Company posted headline-grabbing EBITDA of AUS $78 million, booming 171% on H1 2018 EBITDA of AUS $29 million. This was led by gold and silver sales revenue of AUS $324 million, spiking 33% from AUS $243 million. Resolute gross profit from operations bounced AUS $30 million on a year-on-year basis, up to AUS $69 million for H1 2019.

The Group’s net operating cash flow also jumped on-year, up from AUS $53 million to AUS $95 million. Gold production grew by around 35,000oz, up to 176,237oz during H1 FY19. This allowed gold sales to jump by a similar level, up to 176,294oz.

Shareholders reaped some of the benefit, with EPS rising from 4.40 to 4.71 Australian cents per share. Regarding its operations, the Company said its Syama prospect achieved commercial production rates, the Ravenswood Expansion Project optimisation study progressed and the Group said there were ‘major gold inventory updates’ at its Tabakoroni project.

Resolute Mining comments

Managing Director and CEO, Mr John Welborn, lauded,

“Delivering 176,237 ounces at an All-In Sustaining Cost of US$828 per ounce generated revenues of A$324 million and EBITDA of A$78 million which is an exceptional result during a period of significant investment in our business.”

“The ramp up of the Syama Underground Mine to full production will further increase Resolute’s production base, margins, and cash flows. The acquisition of Toro Gold is a further boost to the profitability and cash generating capacity of our business.”

“Our investment in exploration enabled us to deliver material growth in our gold inventory. At Tabakoroni, we now have a Mineral Resource comprising over one million ounces of gold at a grade above five grams per tonne which will underpin a potential underground mine, while at Ravenswood we added one million ounces of gold in Ore Reserves. Mineral Resources at Ravenswood are now almost six million ounces of gold with our ongoing study work focused on delivering a project which can produce 200,000 ounces annually over a 15 year mine life.”

“We are delighted to have delivered as promised on important strategic goals for 2019 with our listing on the London Stock Exchange, the ramp-up of Syama, and the acquisition of Toro Gold. Gold production for 2019 is now forecast to be 400,000 ounces at an All-In Sustaining Cost of US$960 per ounce with further growth and upside to come in 2020.”

Investor notes

Despite today’s seemingly positive update, the Company’s share price dipped 0.67% or 0.63p to 93.98p a share 30/08/19 11:06 BST. The Group’s p/e ratio isn’t available, their market cap is £821.61 million. Elsewhere in the mining and minerals sector, recent updates have come from; Bisichi Mining PLC (LON: BISI), Polymetal International Plc (LON: POLY) Cora Gold Ltd (LON: CORA), Glencore PLC (LON: GLEN), Jubilee Metals Group PLC (LON: JLP), Ariana Resources plc (LON: AUU) and Bushveld Minerals Limited (LON: BMN).

EMIS Group revenue and profit growth pull up dividends and EPS

Jamie Gordon
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1
EMIS Group revenue and profit growth pull up dividends and EPS
Healthcare software company EMIS Group booked impressive fundamentals for the first half of 2019. The Group’s total revenue grew 7% on a year-on-year comparison, up to £79.8 million. While reported operating profit dipped 3%, adjusted operating profit grew 8%, from £16.8 million to £18.2 million. The Company had a positive set of results to report to its shareholders, with adjusted and reported earnings per share up by 12% and 3% respectively. The Group reported an interim dividend of 15.6p a share, up 10% on H1 2018. The downfalls in EMIS Group’s results were regarding its cash flow, its adjusted cash from operations dipped 18% on-year to £27.5 million, and its net cash dropped 17% to £26.7 million.

EMIS Group comments

Andy Thorburn, Chief Executive Officer, said,

“We have continued to demonstrate good progress in the first half of 2019, delivering positive results in line with the Board’s expectations, with both revenue and adjusted operating profit ahead of the comparative period.”

“We are well positioned to secure our place on the GP IT Futures framework for GP software in England and continue to invest in patient-facing technology and the next generation EMIS-X platform. With our balance of technology, clinical standards and a continuously improving technical environment, the Group is well placed to deliver on its growth and margin targets.”

Investor notes

The Company’s shares have so far rallied 1.26% or 14.00p to 1,126.00p 30/08/19 11:38 BST. The Group’s p/e ratio is 23.46 and its dividend yield stands at 2.53%. Elsewhere in health and medical news, there have been updates from; OptiBiotix Health PLC (LON: OPTI) NMC Health (LON: NMC), Astrazeneca plc (LON: AZN) and ValiRx Plc (LON:VAL).
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