Jubilee Metals acquires Sable Zinc Kabwe refinery
South Africa and Zimbabwe focused metal processing company Jubilee Metals Group PLC (LON: JLP) posted an update on its existing ventures, as well as news on the update of another prospect in Zimbabwe.
On its existing undertakings, the Company noted that commissioning of Eland Platinum’s recovery plant had reached flow stability on the floatation circuit and that the grinding circuit was set to be introduced by mid-July this year. The production of saleable platinum grade metals was to be expected during August 2019 at the Eland Plant.
The Company added that the DCM fine chrome project reached 5,000 tonnes of on spec chrome concentrate in June 2019.
On the Zimbabwe prospect acquisition, Jubilee Metals said that it had met the conditions and that final competition commissioning approval had been received for the Sable Zinc Kabwe refinery, from the Zambian Competition and Consumer Protection Commission (“ZCCPC”).
“Circuit upgrades ready to commence integration with the Sable Zinc Kabwe refinery to process lead, zinc and vanadium,” the Company added.
Jubilee Metals comments
The Company’s CEO, Leon Coetzer, responded to the update,
“Jubilee continues to demonstrate progress with the implementation of its strategy to diversify earnings through both widening our existing metals exposure with the implementation of additional projects as well as expanding our geographic footprint with our Kabwe project in Zambia.”
“I am delighted that we have successfully achieved all conditions precedent for the implementation of the Sable Zinc Kabwe acquisition with the final approval from the ZCCPC being ratified and completion formalised. With the design process near finalised, this allows Jubilee to commence with the circuit upgrade and expansion of the Sable Zinc Kabwe refinery for the processing of the Kabwe tailings to produce zinc, vanadium and lead. The first phase of the project targets the production of Vanadium Pentoxide (V2O5) and a zinc concentrate with phase two bringing the zinc metal refining step and lead concentrate online.”
“The PlatCro PGM project, which has the potential to add 30,000 ounces per annum of PGM production to our existing 30,000 ounces, has reached its first phase commissioning targets achieving stable flow rates through the Eland PGM Plant. The next commissioning target is to bring online the grinding circuit set for mid-July 2019. We expect to achieve saleable PGM concentrates during August 2019.”
“Our ground-breaking DCM Fine Chrome project continues to deliver on expectation producing in excess of 5,000 tonnes of chrome concentrate during the month of June 2019. With this success, we now target to integrate the fine chrome solution into our other operations.”
On its acquisition, the Company said in its statement,
“Jubilee is pleased to announce that the ZCCPC has granted final authorisation for the Acquisition with both Jubilee and Glencore acknowledging that all CPs to the Acquisition have been satisfied. The final administrative process for the Sable Zinc Kabwe refinery handover and share transfer has commenced with the parties agreeing to target completion by the end of July 2019.”
Investor notes
The Company’s share price rallied 5.65% or 0.18p to 3.28p a share 11/07/19 11:55 GMT.
Elsewhere in the mining and minerals sector, recent updates have come from; Ariana Resources plc (LON: AUU), Caledonia Mining Corporation Plc (TSE: CAL), Regency Mines Plc (LON: RGM), Acacia Mining PLC (LON: ACA) Arc Minerals Ltd (LON: ARCM) Thor Mining PLC (LON: THR) Premier African Minerals (LON: PREM) and Pathfinder Minerals (LON: PFP).
Bank of England: UK financial system can withstand chaotic Brexit
The UK financial system is strong enough to cope with a “worst-case disorderly” Brexit, the Bank of England said on Thursday.
The Bank of England said in its Financial Stability Report that the nation’s core financial system, including banks, dealers and insurance companies, is resilient to, and prepared for, a variety of risks such as a disorderly departure from the European Union.
It also noted that the perceived likelihood of a no-deal Brexit has increased since the beginning of 2019, and increased uncertainties surrounding the UK’s departure from the European Union has lead to a decline in the sterling exchange rate.
Despite this, the Bank of England said that the UK banking system remains strong enough with continue to withstand the UK economic and financial pressure that accompany Brexit.
The Bank of England emphasised that financial stability is not the same as market stability — significant volatility and asset price changes are to be expected in a disorderly Brexit.
As the race to lead the Conservative Party reaches its final lap, the winner and new Prime Minister is expected to be announced on 23 July. With Boris Johnson and Jeremy Hunt facing the final battle, political uncertainty surrounding the UK’s departure from the European Union prevails.
Data recently emerged revealing that 72% of small businesses in the UK are putting their business decisions on hold and not planning to increase investment, with Brexit uncertainty cited as having a negative impact on firms seeking investment.
UK house prices have also been hit, with growth in June remaining weak as uncertainty surrounding the nation’s departure from the European union remains chaotic.
Ariana Resources publishes results from Salinbas Gold Project
Turkey-based gold mining company Ariana Resources plc (LON: AUU) today announced the results from its Salinbas Gold Project.
The Company holds a 100% interest in Salinbas via its shareholding in Greater Pontides Exploration B.V. In the recent testing, ‘Salinbas-type’ mineralisation was identified in several holes within c.120m from the surface, in the area connecting Salinbas and Ardala.
At 39 metres, the Company encountered 1.01 g/t of gold in a 12 metre inertsection; at 89 metres it discovered 2.29 g/t of gold in a 6 metre inetrsection; and at 111 metres, an 11 metre intersection yielded 5.33 g/t of gold.
The Company noted the results as displaying ‘significant’ mineralisation, with further results from the laboratory pending.
Ariana Resources comments
The Company’s Managing Director, Dr. Kerim Sener, added to the update,
“We are very pleased to report our preliminary drilling results from the Salinbas Gold Project, since it became 100% held by Ariana. These results, while only partial at this stage, demonstrate the development of a major magmatic-hydrothermal system in the vicinity of the Ardala Cu-Au-Mo porphyry. The latest data confirms that the mineralised part of the Ardala porphyry, which is enriched in precious and base-metals, does connect intimately with the Salinbas gold-silver zone and that the two systems should in fact be treated as one. This was a prediction from our earlier geological modelling and is a finding that bodes exceptionally well for the discovery of further mineralisation in the vicinity, particularly in the immediate surrounds of the Ardala porphyry. This is an area, which to date, has been poorly explored. Consequently we continue to remain excited by the exploration upside of the project and look forward to commencing our follow-up work programmes.”
Investor notes
The Company’s shares dipped during Thursday morning trading, down 1.01% or 0.024p to 2.35p a share 11/07/19 11:35 GMT. Panmure Gordon retains their ‘Buy’ stance on Ariana Resources stock. Elsewhere in the mining and minerals sector, recent updates have come from; Caledonia Mining Corporation Plc (TSE: CAL), Regency Mines Plc (LON: RGM), Acacia Mining PLC (LON: ACA) Arc Minerals Ltd (LON: ARCM) Thor Mining PLC (LON: THR) Premier African Minerals (LON: PREM), Pathfinder Minerals (LON: PFP) and AfriTin Mining Ltd (LON: ATM).Hurricane Energy rallies on Capital Market Day and performance update
UK-focused oil producer Hurricane Energy plc (LON: HUR) announced that it will be hosting a Capital Markets Day presentation today in London today for sell-side analysts and institutional shareholders.
The event will be hosted by Company CEO Dr Robert Trice and CFO Alistair Stobie. It will include presentations of data on the start-up process of the Lancaster Early Production System and the ‘Warwick Deep’ well.
Thus far, highlights from the wells included news that the Lancaster EPS start-up phase yielded ‘World class’ productivity indices of 205 stb/d/psi and 190 stb/d/psi on the -6 and -7Z wells. Further, the Company noted that the EPS also reached its target aggregate EPS stabilised production rate of 20,000 bopd on natural flow.
The Warwick Deep well yielded less positive results, “Hurricane’s initial analysis indicates that the well intersected a poorly connected section of the fracture network within the oil column. The well did not flow at commercial rates producing a mixture of drilling brine, water, oil and gas. The decision was therefore made to plug and abandon the well.”Hurricane Energy comments
On the update, Company CEO Dr Robert Trice attached the following insights,
“I am delighted to be providing an update to the market today. As expected, 2019 is proving to be a transformational year for Hurricane, as we significantly progress the technical and operational platform on which to grow the business further.”
“The Lancaster EPS start-up phase went smoothly and achieved its data objectives. The world class productivity of these wells means that we were able to achieve the desired rates with small chokes and without ESP-support. This bodes very well for future production efficiency and costs.”
“We’ve always said that it would take 6-12 months of stable production before we can establish whether the Lancaster EPS is performing as we predict in our base case model. This continues to be the case.”
“We are encouraged by the Warwick Deep well, despite the penetrated fracture system not supporting a commercial oil flow rate. Hurricane’s assessment of data acquired during drilling and testing indicates that the well encountered a significant oil column on the Warwick structure. Our initial analysis indicates an OWC consistent with pre-drill predictions. Confirmation of our provisional analysis will require data from the remaining 2019 drilling campaign, as well as fluid sample analysis from Warwick Deep. Importantly, we have evidence that suggests to Hurricane that the result at Warwick Deep does not have negative read-across to Lancaster or Lincoln.”
“We are about to spud Lincoln Crestal which, in the case of demonstrating successful flow rates, will be a tie-back candidate to the Aoka Mizu.”
“Looking ahead, we’ve updated our Lancaster EPS production guidance by adding an upside scenario from 2020 onwards, based on the many positive indications we’ve seen to date. We are tracking in line with production guidance for 2019 and are generating significant cash for reinvestment in future activity. Our phased Rona Ridge development continues with strong momentum.”
Investor notes
The Company’s shares rallied sharply following the update, up 16.63% or 7.38p to 51.76p a share on Thursday morning 11:12 11/07/19. Berenberg initiates a ‘Buy’ rating while Barclays Capital initiates an ‘Equal Weight’ stance on Hurricane Energy stock. Elsewhere in the oil and gas sector, there have been updates from; TLOU Energy Ltd (ASX: TOU), Eland Oil and Gas PLC(LON: ELA), IGas Energy PLC (LON: IGAS), Anglo African Oil and Gas (LON: AAOG), Nostra Terra Oil and Gas plc (LON: NTOG), Prospex Oil and Gas Plc (LON: PXOG), TomCo Energy Plc (LON: TOM) and Rose Petroleum PLC (LON: ROSE).Jet2 owner posts 36% rise in profit as Brits go abroad
The owner of Jet2, Dart Group, posted a 36% increase in profit before tax on Thursday in its yearly results.
The leisure travel and distributions and logistics group outlined in its preliminary results for the year ended 31 March 2019 that profit before tax amounted to £177.5 million, up 36% on the £130.2 million figure recorded in 2018.
Basic earnings per share increased by 36% to 97.98p.
The company said that its performance is a reflection of the growing success of its leisure travel products. It offers holiday flights with its airline Jet2.com and package holidays with its licensed tour operator Jet2holidays.
“We know that taking a holiday is one of the most important family experiences of the year. We therefore do our very best to ensure that each of our customers ‘has a lovely holiday’ that can be both eagerly anticipated and fondly remembered, supported by our core principles of being family friendly, offering value for money and giving great customer service,” the Chairman of Dart Group said in a company statement.
Its distribution and logistics business, Fowler Welch, also proved successful, continuing to draw in new business from existing and new customers alike.
Concerning its outlook, the Chairman added that “though overall demand for our leisure travel products has continued to strengthen since the start of the new financial year, it is clear from our forward booking trends that generally, less confident consumers are booking later than last year and therefore pricing for both our flight-only and package holiday products has to be continually enticing.”
“Nevertheless, with still some way to go in the booking cycle, the Board remains optimistic that current market expectations for Group profit before foreign exchange revaluations and taxation for the year ending 31 March 2020 will be met.”
Sector wide issues were highlighted in the results, in particular the cost pressures faced by the travel industry in relation to fuel, carbon and other operating charges.
Lufthansa (ETR:LHA) posted a deeper loss in April for its first-quarter of 2019, blaming higher fuel costs.
Low-cost airline Ryanair (LON:RYA) joins the list of airlines struggling amid rising costs and overcapacity, with the Hungarian airline Wizz Air (LON:WIZZ) also revealing its difficulties amid the increasing cost of fuel.
Shares in Dart Group plc (LON:DTG) were up 2.91% as of 11:10 BST Thursday.
Caledonia Mining retains full year guidance with Q2 Blanket Mine update
Zimbabwe-focused gold mining company Caledonia Mining Corporation Plc (TSE: CAL) today published a production update for the second quarter 2019 on its Blanket Mine project in Zimbabwe.
The Company stated that 12,712 ounces of gold were produced during Q2, which represented a 6.4% rise on the 11,948 ounces for Q1.
Caledonia Mining retained its full year guidance of 53,000 – 56,000 ounces despite H1 output standing at just 24,660 ounces; this was 3.4% lower than last year’s volume of 25,582 ounces.
The Company currently holds a 49% in Blanket Mine, but has penned a conditional agreement to expand this to 64%. It said it remained on target to reach its 80,000 ounces per annum target for 2022.
Caledonia Mining comments
In more detail, the Company’s statement enclosed the following information,“Caledonia’s primary asset is a 49 per cent interest in the Blanket gold mine in Zimbabwe. In November 2018, Caledonia announced that it had signed a legally binding agreement to increase its shareholding in Blanket to 64% subject to the receipt of, amongst other things, regulatory approvals. Caledonia’s shares are listed on the NYSE American (symbol: CMCL) and on the Toronto Stock Exchange (symbol: CAL) and depositary interests representing the shares are traded on London’s AIM (symbol: CMCL).”
“As at March 31, 2019, Caledonia had cash of approximately US$9.7 million. The Company plans for Blanket to increase gold production from 54,511 ounces in 2018 to approximately 75,000 ounces in 2021 and approximately 80,000 ounces by 2022,” the Company said.
Responding to the update, Company CEO Steve Curtis, commented,
“Production in the second quarter of 2019 was slightly below our target but ahead of the comparable quarter in 2018 (Q2 2018: 12,657), and still at a level at which we remain comfortable with our 2019 production guidance of 53,000 to 56,000 ounces for the full year. I am pleased to report that our efforts to improve grade control have delivered results in the quarter although this remains a significant area of focus.”
“We expect to complete the shaft sinking phase of the central shaft project later this month, which will be a significant milestone for our business. We look forward to commencing production from the central shaft during H2 2020 which is expected to deliver the Company’s growth plan to achieve 75,000 ounces in 2021 and 80,000 ounces by 2022.”
Investor notes
The Company’s shares were down 0.13% or 0.01 CAD to 7.99 CAD a share on its last close 10/07/19 16:00 GMT. Elsewhere in the mining and minerals sector, recent updates have come from; Regency Mines Plc (LON: RGM), Acacia Mining PLC (LON: ACA) Arc Minerals Ltd (LON: ARCM) Thor Mining PLC (LON: THR) Premier African Minerals (LON: PREM), Pathfinder Minerals (LON: PFP) and AfriTin Mining Ltd (LON: ATM).Reckitt Benckiser to pay $1.4 billion for US opioid treatment investigation
Reckitt Benckiser (LON:RB) said on Thursday that it has agreed to pay a total of up to $1.4 billion to fully resolve all federal investigations related to the sales and marketing of Suboxone Film.
Suboxone Film is a treatment used for opioid addictions.
The consumer goods giant said that it has reached agreements with the US Department of Justice and the Federal Trade Commission to resolve the long-running investigation into the sales and marketing of the treatment by its former prescription pharmaceuticals business, Indivior.
Indivior was wholly demerged from Reckitt Benckiser back in 2014.
With President Donald Trump declaring an opioids crisis, the business had been accused by the US Department of Justice for illegally boosting prescriptions for Suboxone Film.
The owner of the Dettol brand said that though it has acted lawfully at all times and denies all allegations that it has engaged in any wrongful conduct, the business has decided that the agreement is in the best interest of the company and its shareholders.
The settlements avoids the costs, uncertainty and distraction associated with continued investigations, litigation and the potential for an indictment at a time of significant transformation for the business, Reckitt Benckiser said in a statement.
Reckitt Benckiser recently announced the appointment of PepsiCo (NASDAQ:PEP) Executive Laxman Narasimhan as its new CEO.
“$1.4bn is materially larger than the $400m RB had previously provisioned and represents c2% of its market cap,” Credit Suisse Analyst Alan Erskine said, according to Sky News.
“On the other hand this settlement removes some uncertainty from the investment case.”
Shares in Reckitt Benckiser Group plc (LON:RB) were trading at +2.38% as of 10:30 BST Thursday.
Xeros Technology shares surge on XFiltra patent
Developer and provider of water saving and effluent reduction technologies Xeros Technology Group plc (LON: XSG) announced today that the World Intellectual Property Organisation had published its patent application for microfibre filters suitable for domestic washing machines.
Xeros said the device had been trademarked under the name XFiltra and that its design can be licenced by any domestic washing machine manufacturer, with the function of reducing microfibre pollution during clothes washing.
The device is a combined filter, pump and de-watering unit designed to be an ‘integral part of domestic washing machine’ – XFiltra can be incorporated into any front-loading washing machine during the manufacturing process, the Company said.
Xeros Technology comments
In its statement, the Company shared more information about their XFiltra technology,“Washing clothes containing synthetic fibres such as polyester and nylon has been identified as the single biggest source of primary microplastics released into the oceans every year with as many as 700,000 microfibres released into the environment from a single domestic wash cycle. “
“XFiltra is the world’s first operationally effective and commercially viable filter to address this issue.”
Speaking on the update, Compnay CEO Mark Nichols added the following comments,
“As part of our objective to radically improve the sustainability of water intensive industries, we made a commitment in 2017 to the UN Ocean Conference that we would produce a solution to the issue of microplastic pollution from domestic laundry. XFiltra fulfils that commitment.”
“XFiltra is a low-cost solution to one of today’s most pressing environmental issues: plastic pollution. XFiltra captures up to 99% of all microplastic particles shed from clothing during a domestic laundry cycle.”
“Solving the issue of microplastic particles entering the environment from the clothes will require action at many points of the supply chain including washing machines. We are now engaged in meaningful discussions with washing machine manufacturers, retailers and clothing brands regarding XFiltra – this represents a giant step towards reducing the largest source of primary microplastic pollution in the ocean.”
Investor notes
The Company’s share price spiked 44.90% or 2.82p to 9.1p a share 10/07/19 16:04 GMT. Elsewhere in the tech sector; 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), provided trading updates.TLOU Energy posts update on Lesedi gas flow
Southern Africa-based advanced gas producer and coal bed methane operator TLOU Energy Ltd (ASX: TOU) provided an update on its Lesedi 3 and Lesedi 4 pods.
The Company said that it was pleased to announce that the Lesedi 4 pod has reached Critical Desorption Pressure. It also announced that a short term gas flow test yielded ‘positive results’ fro the Company’s Lesedi 3 pod.
TLOU Energy added that the dewatering of the Lesedi 3 and 4 pods is continuing according to plan.
TLOU Energy statement
The Company’s statement disclosed the following, “The Lesedi 4 pod has continued to dewater and CDP has now been reached successfully. CDP is the pressure that gas begins to come out of the coal after a careful dewatering process. Gas is now starting to come out of the coal and is steadily building pressure inside the closed casing.”“A short-term gas flow test at Lesedi 3 took place after a significant gas pressure build-up inside the well casing. The result of this test is considered by the Company to represent a positive indication of the pod’s potential. Post the short-term test, dewatering has continued with the plan to hold the water level just above the coal and continue to draw down pressure in the well allowing gas to flow in a controlled manner, ideally leading to a long-term gas flow from the Lesedi 3 pod.”
The Company’s Managing Director, Tony Gilby, attached the following comments to the update, “We are very pleased to have now reached CDP at both the Lesedi 3 and Lesedi 4 production pods. The short-term gas flow test at Lesedi 3 has also been positive, and with the primary objective of demonstrating a commercial gas flow rate, we look forward to further testing at both Lesedi 3 and 4. Further updates will be provided in due course.”Investor notes
The Company’s shares are currently not trading. Elsewhere in the oil and gas sector, there have been updates from; Eland Oil and Gas PLC (LON: ELA), IGas Energy PLC (LON: IGAS), Anglo African Oil and Gas (LON: AAOG), Nostra Terra Oil and Gas plc (LON: NTOG), Prospex Oil and Gas Plc (LON: PXOG), TomCo Energy Plc (LON: TOM), Rose Petroleum PLC (LON: ROSE) and Petrofac Limited (LON: PFC).Eland Oil and Gas update on Gbetiokun-3 leak
West Africa based oil and gas production and development company Eland Oil and Gas PLC (LON: ELA) announced today that a remedial tube has been installed on its Gbetiokun-3 upstream well in OML40, Nigeria.
As previously announced, the Company had been undertaking ‘necessary remedial work’ on the Gbetiokun-3 short string.
“During pressure testing, a small leak was identified on the shallower D9000 completion string. Following further diagnostic logging, the leak was located and a remedial tubing patch is scheduled to be installed in the near future which will allow the string to be opened up to flow. The deeper E4000 interval was cleaned up in Q1 2019 and achieved choke-limited rates in line with pre-drill expectations.” said the Company’s previous statement
Drilled as an appraisal well in Q4 2018, the well had a dual completion with the D9000 and E4000 reservoirs installed in Q1 2019. After diagnostic testing, the small leak identified at D9000 was located and a remedial tubing patch has since been successfully installed.
Eland Oil and Gas comments
On the update, Company CEO George Maxwell, commented,
“We are pleased to have successfully completed the remedial work on Gbetiokun-3 and are very happy with the achieved flow-rates of almost 7,000 bopd. With Gbetiokun-1 performance already established at over 5,000 bopd, we look forward to updating all shareholders as we bring the field on stream later this month.”
The Company’s statement also enclosed,“At present, the short string is being produced with the temporary facilities on location. Initial gross rates of some 3,880 bopd have been recorded at a choke size of 36/64″. The deep E4000 interval was tested in Q1 2019 and achieved choke-limited gross rates of 3,000 bopd, in line with pre-drill expectations.”
“The company expects the field to be brought onstream in July through the Early Production Facility, presently being installed, with initial gross production of approximately 12,000 bopd (net: 5,400 bopd) from the Gbetiokun-1 and -3 wells.”