IGas to seek new site and up to two exploration appraisals
Independent oil and gas exploration and production company IGas Energy PLC (LON: IGAS) seeks a new site and announces it could potentially drill two exploration and appraisal wells at its Weald Basin.
The Company’s initial well would seek to test and evaluate the potential for commerical resources at both the Kimmeridge Mcrites and Portland Sandstones sites.
Owing to the recent findings of a technical study, the Company decided that the Kimmeridge Mcrites had scope for approximately 300 million barrels of oil within the PEDL 235 in the Weald Basin; which it deemed ‘significant’.
Arc Minerals rallies and announces West Lunga as drilling target
African-continent-based Copper, Gold and Cobalt mining company Arc Minerals Ltd (LON: ARCM) has today announced that it was going to prioritise West Lunga as a drill target following the ‘large’ Zamsortthe target being identified by technical consultants and the success of its Cheyeza East prospect last week.
Following this latest discovery, the Company said it was likely to prioritise West Lunga, but said it would have to review its drill targets in their entirety.
The Zambia-based West Lunga venture is located in the West of the Zamsort and Zaco licences. The Company said the site had displayed anomalous copper over a 6km strike, with values going up to 463ppm of copper.
Arc Minerals comment
The Company’s Executive Chairman, Nicholas von Schirnding, had this to say on the update, “This is very encouraging news – especially having been identified by the discovery team of Kamoa, one of the largest high-grade copper discoveries of recent times. This development means we are going to review the ranking of our 14 priority drill targets and it is likely that we will prioritise West Lunga as one of our highest priority targets.” As mentioned above, today’s news followed the successful testing of the Company’s Cheyeza East venture; on which the Company’s Executive Chairman said, “These maiden drill results have exceeded all our expectations both in terms of grade and thickness. While we are still at an early stage in the drilling programme, these results are highly encouraging and we have now deployed two rigs to Cheyeza East. Importantly our third hole 200 meters south also shows significant mineralization.”Investor notes
Following what is seemingly a string of positive updates, the Company’s shares have rallied 7.35% or 0.25p during early morning trading, up to 3.65p a share 04/07/19 10:56 GMT. Elsewhere in the mining and minerals sector, recent updates have come from; Thor Mining PLC (LON: THR) Premier African Minerals (LON: PREM), Pathfinder Minerals (LON: PFP), Arc Minerals Ltd (LON: ARCM), AfriTin Mining Ltd (LON: ATM), Ferrexpo Plc (LON: FXPO) and Altus Strategies Plc (LON: ALS).Anglo African Oil & Gas issue £8.25m share placement to fund oil production
Oil and gas producing company Anglo African Oil and Gas (LON: AAOG) announced on Wednesday that it had received commitments to raise up to £8.25 million via a share issuing to fund its attempts tore-enter the TLP-103C well.
The well is based at the Company’s Tilapia field in the Republic of Congo, and the Company hopes to produce oil frpm the Djeno horizon.
This fundraising venture includes a commitment from the Company’s existing institutional investors, which entails subscribing for 52,288,347 shares at a price of 5p share. Further, it included a signed balance sheet between Anglo African and European High Growth Opportunities Securitization Fund, with the group set to subscribe for a minimum of 106,331,011 shares.
Anglo African Oil and Gas comments
In its press release today, the Company confirmed the news with the following statement, “Anglo African Oil & Gas plc (AIM: AAOG), an independent oil and gas developer, announces that it has received commitments to raise up to £8.25 million (the “Fundraising”) through the issuance of new ordinary shares of 5 pence each in the capital of the Company (“Ordinary Shares”) at a price of 5.2 pence per Ordinary Share (the “Issue Price”). The Fundraising will provide the Company with the funds required to re-enter the TLP-103C well at its Tilapia field in the Republic of the Congo with a view to producing oil from the Djeno horizon.” The Company’s Executive Chairman, David Sefton, went on to respond, “It has been our goal since inception to produce oil from the potentially prolific Djeno horizon. Technical analysis of the well data and the oil that has subsequently come to surface has led to a revision of the operational plan such that we will now re-enter the Djeno in 103C and seek to produce from it. Once completed, this Fundraising will enable us to achieve this. We are grateful for the support shown and look forward to completing the Fundraising very soon.”Investor notes
Following the announcement, Anglo African shares closed down 6.25% or 0.32p at 4.88p a share on Wednesday 03/07/19 16:25 GMT. Analysts from finnCap remained unchanged in their ‘Corporate’ stance on the Company’s stock. In the last few days there have been updates from Nostra Terra Oil and Gas plc (LON: NTOG) and Prospex Oil and Gas Plc (LON: PXOG), and elsewhere in oil sector, there has been news from; TomCo Energy Plc (LON: TOM), Rose Petroleum PLC (LON: ROSE), Petrofac Limited (LON: PFC), Eco Atlantic Oil and Gas Ltd (CVE: EOG) and Mayan Energy Ltd (LON: MYN).‘Rock star’ Christine Lagarde claims ECB top job
“no, no, no, no, no, no”
Christine Lagarde was adamant last year that she wasn’t interested in running the European Central Bank. Now she stands nominated, and while many of the British public neither know who she is, nor what bearing this news has on them, the significance of the individual entering the position is certainly worth discussing.
A determined and poised character, you do not have to agree with either her views or her approach to the tasks she undertakes to admire her drive. Ms Lagarde’s father passed away when she was only seventeen, and she notes that the strength her mother bore to raise four children by herself was something she drew inspiration from.
As anyone familiar with Ms Lagarde’s work will know, this latest ‘honour’ is just one of many which has seen her acquire taglines and accolades such as the ‘rock star of finance’, and perhaps more significant, ‘first ever female’. That latter accomplishment has become something of a motif for Ms Lagarde, who after failing to be accepted into her chosen college three times went on to become the first woman to chair the international legal firm Baker McKenzie, the first female Finance Minister of France (or any G8 member nation-state) and most recently the first female managing director of the International Monetary Fund. In spite of this impressive list of credentials, she has already faced questions over whether she is suitable for her new role.
“I’m not a super-duper economist”
A quote taken from an interview with The Guardian in 2012. Her rivals’ supporters have raised the issue that Ms Lagarde has neither extensive academic or professional expertise in economic theory and practice. This issue being raised is of particular importance because her predecessor – incumbent ECB president Mario Draghi – was chosen for being exactly what she isn’t; well versed in economic theory. In the crisis period post-2008, Draghi was chosen for his creativity and it was thought his ingenuity in applying economic theory made him well-suited to tackle the monetary challenges faced by the eurozone.
What should be considered though, despite the fact that Ms Lagarde herself confessed her lack of economic experience, is that she would not be the only major monetary policy player without a background in economics. The US Federal Reserve chairman, Jerome Powell, is also from a legal rather than financial background. Further, having an ECB president with more in-depth legal insight could be of use. If one appreciates that a large proportion of the movement of capital around the world is done either using legal mechanisms, or done because of the relative advantages offered by different legal systems, then having someone who is familiar with the legal procedures pertaining to trade and the movement and storage of capital, could prove useful. This is not to say that Ms Lagarde would be able or be interested in changing the way capital flows, rather, knowing the legal ins and outs of economics should make her just as qualified as an economic grand strategist.
Regarding Europe specifically, Ms Lagarde worked extensively with struggling economies such as Greece and Portugal during her time chairing the IMF, and in turn appreciates not only the extent of the challenges these economies face but also understands the task of attempting to manage a divergent currency union. She would also see Draghi’s legacy continue after his departure, with some viewing Ms Lagarde as a ‘continuity candidate’ in favour of preserving the euro and supporting accommodative monetary policy to avoid deflation.
This tag of continuity, though, weighs heavily on Ms Lagarde as far as her political life and views are concerned. Seen by some as favouring the politics of amelioration and consensus, there are fears that Ms Lagarde would be prone to outside influences; with her background in politics and negotiation inspiring fears that the ECB would lose its independence. There is an ongoing trend of political figures entering the top positions of Central Banks, as seen in Finland, Slovakia and even the vice presidency of the ECB. The fear is that the appointment of Ms Lagarde will see the ECB deteriorate into a bureaucracy, and that for Lagarde to be successful, she will need to emulate Draghi’s success in telling politicians what needs to be done, rather than pandering to external political agendas.
This would not be a worry for those who know Ms Lagarde as a shrewd and straight-talking character, and that would be the case for her critics too, had her political standing and personal views not clashed on occasion. On the subject of austerity politics for instance; Ms Lagarde spoke out in support of Britain during its campaign of quantitative easing and fiscal retrenchment, only later going on to encourage countries to use their spending power to ease the burden of the least well-off and invest in environmentally friendly infrastructure. Now, Ms Lagarde is known for her right-of-centre politics during her time in office under Nicolas Sarkozy. We can either assume, then; that one of her two stances on austerity is merely disingenuous political rhetoric (most likely the latter), that Ms Lagarde doesn’t realise the correlation between austerity and funding cuts to public services (which I don’t believe), or that she indecisively panders to each side of the political mainstream. None of these scenarios are favourable, and reflect the characteristics of a political figurehead rather than a monetary decision-maker.
That being said, Ms Lagarde’s reputation as a tough negotiator didn’t come from nothing. She is known for not being easily swayed and behaves according to her own agenda – the BBC even reporting that she sometimes exercises during meetings. In all seriousness though, Ms Lagarde has no qualms about carrying out necessary courses of action. Last year for instance, she presided over the IMF’s largest ever bailout, a sum of $57 billion to Argentina which many credited with curbing turbulence in emerging markets. Further, it has also been suggested that despite her economic inexperience, her political acumen could help her pursue progressive structural changes to the ECB, such as a possible euro zone fiscal budget to help countries suffering isolated shocks.
Regardless of the opinions of either camp, the rock star of finance will have to remain strong, single-minded and reflect on her experience as a leader and decision-maker, should she hope to successfully carry out the office of ECB president. Possible successors for Ms Lagarde’s position at the IMF include the outgoing European commissioner for economic and financial affairs, Pierre Moscovici, and Governor of the Bank of England, Mark Carney.
Thor Mining advances vanadium JV plans
Mining company Thor Mining PLC (LON: THR), which manages a vanadium and titanium mining joint venture in Northern Australia, has announced plans to further its exploration and assessment of the Jervois vanadium project.
Going forwards, work would include drilling the Casper, Coco and RD deposits as well as testing other prospects within the area for vanadium and titanium deposits of economic grade.
At present, Thor Mining is the acting manager of the joint venture, holding a 40% stake to its partner Arafura’s (ASX: ARU) 60% holding.
Thor Mining comments
Talking of its previous exploration, the Company noted, “536 samples from the 2008 drilling were analysed for Au, Pt and Pd. Samples were selected from 14 holes from across the major magnetite rich areas. The samples represented the same magnetite rich intervals that were sampled and analysed for Fe/Ti/V mineralisation.” Speaking on what it hoped would be a successful outcome, the Company said its next steps would include the following, “Subject to successful outcomes from these activities, next steps would include detailed metallurgical test-work, and other technical activities, plus environmental and social impact studies aimed at progressing feasibility and mine development permitting.” “The joint venture parties plan to actively seek third party project investment in the Jervois Vanadium Project, with all potential options canvassed, to take this exciting project opportunity forward.”Share Issuing
In addition to today’s news, the Company announced a share issuing which is set to utilise Thor’s existing capacity. “The Board of Thor Mining Plc (“Thor”) (AIM, ASX: THR) is pleased to announce that 4,687,500 New Ordinary Shares are to be issued by the Company at a deemed share price of 0.80p per share in lieu of marketing and communications services valued at £37,500.” “The services provided relate to multi-channel public and investor relations to broaden awareness of the Company, its business interests and its strategic and operational plans.”Investor notes
Thor Mining shares rallied during trading on Wednesday morning, up 3.86% or 0.03p to 0.8p a share. Elsewhere in the mining and minerals sector, recent updates have come from; Premier African Minerals (LON: PREM), Pathfinder Minerals (LON: PFP), Arc Minerals Ltd (LON: ARCM), AfriTin Mining Ltd (LON: ATM), Ferrexpo Plc (LON: FXPO) and Altus Strategies Plc (LON: ALS).UK credit card debt rises to £72.9 billion
British consumers owe a total of £72.9 billion in credit card debt, recent data provided by the Bank of England shows.
This debt has stemmed from relatively low-interest rates urging families in the UK to borrow more than they have before, following the financial crisis.
The figure is a 5.6% increase, up £68.8 billion since May 2018.
Some credit cards provide opening offers that quickly expire, which could cause some financial complications for millions of families across the UK.
“We are in a whirlwind of debt and consumers are juggling what they owe onto credit cards. This can be a dangerous game to play in the medium and long term, with introductory rates quickly becoming high-interest, making them difficult to pay off,” Dr Roger Gewolb, the Executive Chairman and Founder of FairMoney, commented on the data.
“With such pressure, it’s not surprising that consumers would turn to payday lenders to try to ease their financial burden. We’re over a decade on from the financial crash of 2008– but there is still need to for change,” the Executive Chairman and Founder of FairMoney continued.
“It is time for consumers to take control of their personal finances with the solutions available to them. Taking out a loan to consolidate debts, and not having a number of credit cards, can make the repayment process easier and is often cheaper in the long-term.”
“Millions of people are struggling under high-interest credit options – one of the biggest issues affecting UK society.”
At the end of last year, the Financial Conduct Authority revealed its plans to ban banks from charging high overdraft fees.
Fattorie Dei Dolfi and the launch of their new investment wines
A new entrant but using traditional methods, both personal and romanticised but stressing its exclusive clientele. Fattorie dei Dolfi may confuse some with its dichotomies, but one thing cannot be confused – the vineyard’s painstaking attention to detail creates an inspired end product.
Fattorie’s launch
Last week Fattorie debuted its range of fine wines at the Gaggenau showroom near Cavendish Square, and the sense of occasion was palpable. The tasting began with Director of OenoFuture, Daniel Carnio, reflecting on his relationship with the owner of Fattorie and their mutual fixation with the process of creating a special wine. In what felt as much science lesson as history lesson, Daniel briefly set the scene for those in attendance, telling us of the success of new fine wine entrants from California, before going on to recite the merits of the Tuscan produce on offer that day. Everything from the blends of traditional grape varieties, soil types, weather, and light and climate exposure on the casks in a partially underground cellar – every fine detail was being considered by the vineyard which wants prospective clients to take its produce as seriously as it does. That isn’t to say the brand or end product lacks character, though. While the Company stressed the importance of exclusivity, I didn’t get the sense this came from a pompous outlook. Rather, it was evident that what was being produced was deeply personal to all of those involved in the process. Even though the owner of Fattorie wasn’t able to attend the launch – apparently unwilling to entrust the care of his vineyard to anybody else – the affection felt for what his team had produced was tangible to anyone who watched Daniel’s face as he enjoyed the nose of each wine. Torn between momentarily savouring each sip in silence and enthusiastically explaining the genealogy of each grape, anyone would have been forgiven for thinking that Daniel was describing a Company with long and illustrious history. While Fattorie itself may have been bottling its wines for little over a decade, the methods it uses are time-tested, using grapes loved by Italian wine enthusiasts and incorporating a passion passed down through generations. “My grandfather, Bendinelli Fornarino, was a relative of Don Giuseppe Bendinelli, parish priest of Perignano, Lari. Don Giuseppe had a real passion for wine and viticulture and he taught my grandfather the secrets and technologies already experimented in the past to produce high quality wines.” Said the owner of Fattorie on the Company’s website. “For some time, and in various contexts, I had known Dr Giacomo Tachis. After talking to him about my idea, being fascinated by his immense knowledge, I took his advice to heart and decided to keep doing what my family had done for centuries: the winemaker.”The tasting
So, enough storytelling. I was lucky enough to try three editions of Fattorie’s limited wine stock – and when the Company say limited, they really mean it. The first wine, the Bianco Per Amore, was complex and unique. A mixture of Pinot and Chardonnay grapes, the wine set itself apart from the dry varieties one might drink on a day-to-day basis with the depth of its flavour. What really made it stand out though, was the speed at which its bouquet and palette matured. Within twenty minutes of our first taste – which revealed a nuanced, harmonious character – the wine had completely mellowed into a different but equally enjoyable experience. This wine is developed with a love one puts into something they want to drink and enjoy at every occasion, and that’s exactly what this wine is made for. The owner of Fattorie created this wine for himself, and at a production capacity of fewer than a thousand cases per year, this complex and unique creation represents an exciting investment opportunity, or better yet a thoroughly enjoyable wine for a special occasion. The second wine (not in the order tried on the day) is the Artorius. Well-balanced, ruby-coloured and direct, this wine sets itself apart from the other wines tried on the day with its simplicity. This wine is composed of Prugnolo Gentile, a grape loved in Italy and used in popular wines such as Brunello di Montalcino, it serves as a wine with character and should be shared over a meal with friends and family. This wine is produced in higher volumes than most of Fattorie’s repertoire, and while it isn’t a typical investment wine, its limited availability and sparse appearances at fine dining establishments makes it a talking point for any wine lover. The third and final wine is the very noteworthy Imeneus. A wine with an authentic identity – both its name and story – Imeneus was described by our host as “very Italian”. Being Italian himself, I sense he didn’t use those words lightly, and would go as far as to say he was proud to have this wine incorporated into our perceptions of Italian culinary culture. There are very few words that do justice to this member of the Fattorie family, but technically at least, it stands as a fine example of what an expert can do with the Prugnolo Gentile variety. Its lively, complex and spiced fruit aroma inspires an involuntary aura of festivity within anyone fortunate enough to drink it. Its smooth fragrance, tobacco aroma when left to age and its balsamic undertones once left open make it something truly special. With under two thousand cases of Imeneus made a year – my favourite fine wine investment cliché has never rung truer. It represents an investment with great potential for growth, but in the worst-case scenario, I’m sure you’ll have a great time drinking it.Concluding thought
In a time where fine wine sales are on the increase and overall wine consumption is down, the Company hopes to capitalise on a shift in investor behaviour. The current climate is proving turbulent for stakeholders in commodities and equities and many are beginning to look toward a more secure and self-governed investment solution – a solution which fine wine producers like Fattorie are glad to offer. This Company is producing wines of distinction in its early years, and any investor can expect to see a return on a product which Fattorie’s owner hopes will someday rival Chateau Lafite. Speaking on the teachings of his mentor, Fattorie’s owner said,“He always said that it is not enough to make a good wine; that wine must be exclusive and the true expression of the terroir.”
Room share platform that uses algorithms to match tenants by personality makes UK’s Startups 100
Ideal Flatmate, a leading room share platform, has made the UK’s top index of disruptive businesses that have been launched in the past five years.
Operated by Startups.co.uk, the Startups 100 showcases new businesses which demonstrate innovation, economic impact, solid financials and the ability to scale.
Ideal Flatmate joins names from previous years such as Deliveroo, Notonthehighstreet and Monzo.
“Congratulations to all of the companies listed on the Startups 100 this year. We had more entries than ever and the standard was especially high, so being included is a fantastic achievement,” said Bryn Glover, Editor of Startups.co.uk.
“We have a good track record of identifying potential – Deliveroo, Notonthehighstreet, HelloFresh and many more, so we can’t wait to watch the businesses progress over the coming years,” Bryn Glover continued.
The room sharing platform uses scientifically designed algorithms to match potential house mates, in order to ensure they are compatible. Compatibility is based on a range of personality traits, which has enabled much higher tenant retention rates as a result.
The platform was founded by Tom Gatzen and Rob Imonikhe, forming a firm foundation in the nation’s capital since it launched in 2016. The concept has now been rolled out across a variety of major cities in the UK.
“We’ve put a lot of work into delivering a platform that puts the emphasis on people rather than property and I think this is something that resonates with the many who have otherwise had a less than ideal experience when renting in the UK,” Tom Gatzen, Co-Founder of Ideal Flatmate, commented on the announcement.
“While such recognition is great, we’ve still got a long way to go and now that our national expansion is well underway, we’re looking forward to helping landlords and tenants across the UK to find their ideal flatmate,” Tom Gatzen added.
The Startups 100 was invigilated by a range of high-profile business leaders such as the entrepreneur and angel investor Alex Farrell, England and Lions rugby player and CEO Tim Rodber, Instagram influencer and small business advocate Gemma Metcalfe-Beckers (Mutha Hood), engineer, investor, and inventor Gi Fernando MBE and founder and serial entrepreneur and President of MVF Titus Sharpe.
Revolut, with over four million customers in the UK and Europe, was ranked first.
72% of small UK businesses will not increase investment as Brexit weighs
New data revealed on Tuesday that 72% of small businesses in the UK are putting their business decisions on hold and not planning to increase investment.
A survey by the Federation of Small Businesses shows that the share of these seeking to expand their capital investment plans is now at its lowest level since the third quarter of 2017.
The uncertainty surrounding the UK’s departure from the European Union has been cited as having a negative impact on firms seeking investment.
The survey also found that operating costs are on the rise as 48% have said labour costs are a main cause of higher outgoings.
Additionally, the proportion of smaller businesses seeking to grow over the next 12 months has dropped to the lowest level since 2012. Seven in ten small firms do not expect their performance to improve over the next three months and four in ten actually expect it to worsen.
The UK has also been hit by the slowdown in growth globally, in particular certain European economies such as Germany and Italy, according to the report. When combined with Brexit, consumer and business confidence have been equally impacted.
“Ironically, the Brexit-related uncertainty may be contributing to a strong labour market picture. Unemployment is at record low levels, as businesses looking to expand choose to hire more workers rather than pursue less reversible forms of investment,” Nina Skero, Director and Head of Macroeconomics at Cebr, provided a commentary.
“This is reflected in this quarter’s SBI. The net balance of firms expecting to increase hiring activity over the next three months is very high at 10.2% – an increase of 3.1 percentage points compared to the previous survey.”
As the nation braces itself for the Halloween date extension, Brexit uncertainty prevails.
Meanwhile, the race for leadership of the Conservative Party is reaching its final lap as Hunt and Johnson battle for victory.
UK house price growth weak, Brexit uncertainty prevails
UK house price growth in June remained weak as uncertainty surrounding the nation’s departure from the European Union prevails, new data from Nationwide reveals.
House prices grew by 0.5% compared to last year, down from the 0.6% growth recorded in May.
“UK annual house price growth remained below 1% for the seventh consecutive month in June, at 0.5%, Robert Gardner, Chief Economist at Nationwide, commented on the results.
“Survey data suggests that new buyer enquiries and consumer confidence have remained subdued in recent months. Nevertheless, indicators of housing market activity, such as the number of mortgages approved for house purchase, have remained broadly stable,” Robert Gardner continued.
“Housing market trends are likely to continue to mirror developments in the broader economy. While healthy labour market conditions and low borrowing costs will provide underlying support, uncertainty is likely to continue to act as a drag on sentiment and activity, with price growth and transaction levels remaining close to current levels over the coming months.”
Northern Ireland remained the strongest performing home nation in the second quarter, with annual price growth increasing to 5.2% from 3.3% last quarter, Robert Gardner added.
Prices fell in London for the eighth consecutive quarter, though the annual pace of decline moderated to 0.7% from 3.8% last quarter.
Across England, the Outer Metropolitan was the weakest region in the three months to June, followed by the Outer South East.
“Elsewhere in England, annual price growth remained relatively modest in Q2, with Yorkshire & Humberside the best performing region, with a 3% year-on-year rise.”
“House price growth across northern England (North, North West, Yorkshire & Humberside, East Midlands and West Midlands) averaged 2.1%, remaining ahead of that in the south (London, Outer Metropolitan, Outer South East and East Anglia), which experienced a 0.7% fall. These trends are not entirely unexpected, however, as they follow several years of sustained outperformance in London and the south, which left affordability more stretched in these areas.”
The subdued growth in house prices occurs against a backdrop of political and economic uncertainty as the nation waits for the new Halloween Brexit extension.