Shefa Yamim shares climb after technical economic evaluation
Shefa Yamim shares (LON:SEFA) rose on Wednesday after the company said it had received a technical economic evaluation for Zone 1 of its Kishon Mid-Reach project.
According to a company statement, the evaluation revealed that the mine has the potential to process a total of 1.5 million tonnes of gravel over an 11-year mine life.
In addition, Shefa Yamim said that the the overburden removed would be around 1.8 million tonnes, with an operating cost budget estimated at $26 (US dollars) per tonne.
Avi Taub, Chief Executive of Shefa Yamim, commented on the findings: “We are encouraged by the Technical Economic Evaluation for our Kishon Mid-Reach Zone 1 project which has provided the Company with a solid base case for the development of the Kishon Mid-Reach Zone 1 project. The independent TEE report suggests that the project is at the lower end of the cost curve, placing the costs on a par with comparable diamond producers and at the lower end of the precious stone producers.
“For a relatively small amount of investment, the Company will be able to upgrade its new processing plant and machinery, which will double its processing capacity as well as potentially halving the unit operating cost once in steady state operations. I look forward to updating with further developments as we progress towards providing an indicative valuation of the precious stones and trial mining on the Kishon Mid-Reach Zone 1 project.”
Shefa Yamim is a multi-commodity gemstone mining exploration company. Its operations are located in Northern Israel.
Shares in Shefa Yamim (LON:SEFA) are currently up +6.74% as of 11:21AM (GMT).
Mattioli Woods profits bounce 3.7% with cost cuts
Wealth management firm Mattioli Woods (LON:MTW) have booked a 3.7% rise in H1 profits on-year, and have attributed this success to cutting costs.
An improved business model
The company recorded below-par revenues but disappointing windfalls were offset by savings in operating costs. The news follows revenue growth in the previous financial year, along with success for the company’s counterparts. Pre-tax profit for the six months through November rose to £5.6 million, with revenue up 2.8% to £29.2 million. Mattioli Woods have stated that its full year profit outlook was in line with expectations. “I am pleased to report another period of sustainable profit growth, achieved against the backdrop of a complex market,” Chief Executive Ian Mattioli said. “As highlighted in our January trading update, revenue growth in the period was slightly lower than expected due to a combination of the group reducing clients’ costs and general market conditions.” “The financial impact of this was more than offset by the realisation of operational efficiencies and other administrative cost savings.” “While there remains uncertainty around Brexit it will continue to impact markets and consumer confidence.” “Our integrated model means we are well-positioned to proactively advise our clients and we anticipate we may see an increased demand for advice once the shape of Brexit becomes clearer.”Mattioli Woods as a portfolio candidate
The firm have declared an interim dividend of 6.33p per share, an increase of 15.1% on-year. The company’s share price has dipped in morning trading on Wednesday, with shares currently trading down 10p or 1.37% at 720p per share. Shore Capital analysts have reiterated their ‘Buy’ stance on Mattioli Woods stock, after upgrading their investment rating in January.Interserve agrees rescue deal with creditors, shares rise
Interserve announced it has agreed a rescue deal with lenders, sending shares up during Wednesday morning trading.
The construction company said that the deal will allow the firm to strengthen its balance sheet.
As part of the deleveraging plan, net debt will be reduced to £ 275 million through the issuing of £480 million of new company equity.
RMDK will also remain part of Interserve under the deal. with £350 million of existing debt allocated to RMDK. The deal is still subject to shareholder approval.
Debbie White, Chief Executive of Interserve, commented:
“Agreeing the key commercial terms of the Deleveraging Plan with our lenders, bonding providers and Pension Trustee is a significant step forward in our plans to strengthen the balance sheet.
The Board believes that this agreement will secure a strong future for Interserve. This proposal has been achieved following a long period of intensive negotiation and has the support of our financial stakeholders and Government. Its successful implementation is critical to the Interserve Group’s future and all of its stakeholders.”
Despite reporting revenue of £3.25 billion in 2017, the company has struggled financially in recent years, leading to a string of profit warnings. As a result, the company underwent restructuring in March of last year.
Last year, rival construction company Carillion collapsed, becoming the largest ever trading liquidation in the UK.
Carillion’s collapse raised concerns over the financial health of the construction industry, including firms such as Interserve.
Shares in Interserve (LON:IRV) are currently +13.20% as of 10:29AM (GMT).
Barratt Developments H1 profits up 19%
Residential property development firm Barratt Developments (LON:BDEV) have recorded strong profits on the back of a series of completions and improved margins amid sales for the first half.
The news follows a positive end to the previous financial year, with the company rallying off of a trend of increased sales and a decision to focus new developments outside of London.
Barratt’s latest update
Regarding its most recent updates, Barratt logged pre-tax profits for the six months to December of £408 million, with revenue bouncing 7.2% on-year to £2.13 billion. For the same period, the company announced that property completions were up 4.1% to 7,622 and its gross margin expanded by 200 basis points to 22.6%. Chief Executive David Thomas commented, “The group has delivered a strong operational and financial performance across the half year,” “Whilst we continue to monitor market conditions closely, current trading is in line with our expectations and we are confident of delivering a good financial and operational performance in the full year.” However, the group also noted that net private reservations has dipped to 0.64 per active outlet per week, a drop from 0.68 the year before.Barratt as a portfolio candidate
Overall, the company have an optimistic outlook going forward. The company declared an interim dividend of 9.6p per share, a jump of 11.6% on-year. Similarly, the firm’s shares are up 16.2p or 2.96% in morning trading, to 562.6p 06/02/19 10:10 GMT. Analysts from Shore Capital and Liberum Capital have reiterated their ‘Buy’ stance on Barratt stock, while Peel Hunt have reiterated their ‘Add’ rating.Amino Technologies shares fall after disappointing 2018
Amino Technologies shares (LON:AMO) plunged on Tuesday after the company posted its annual results for the year, disappointing investors.
The global media entertainment and technologies provider said revenue dropped by 7% to $88.9 million, down from $96.1 million reported in 2017.
In addition, pre-tax fell considerably to $8.2 million for 2018, compared to $13.3 million the year before.
Amino Technologies blamed ‘unprecedented macro-economic headwinds’ for its its disappointing annual performance.
Keith Todd CBE, Non-Executive Chairman, commented:
“The Board remains confident in the strength and strategic direction of the Company and has committed to continue its dividend policy for this financial year and maintain this dividend level for at least two years thereafter. The diversity and depth of change in our industry this year has created difficult trading conditions in the short term, however the Company remains well positioned to take advantage of the all IP future, and remains profitable and cash generative.
He also added:
“To support a higher quality of earnings and de-risk the business, we are accelerating our strategy to improve growth in recurring revenues from software and services, reinforce our focus on value-add hardware, and remove our exposure to low margin hardware activities. This will increase the quality of our earnings and our resilience going forward.”
The company suggested a dividend per share of 7.32p, compared to 6.66 in 2017.
Back in October, the firm warned on profits after trade war concerns hit emerging markets and had worried its customers.
Shares in Amino Technologies are currently down -14.34% as of 14:07PM (GMT).
Numis shares plunge as Brexit uncertainty hits profits
Numis (LON:NUM) warned on the impact of Brexit uncertainty on its performance in a trading update issued on Tuesday.
The City broker said uncertainty domestically had continued to affect trading during the financial year.
The statement said:
“UK equity indices have suffered material declines and the domestic political situation has significantly impacted investor sentiment in the UK. As a result the market backdrop has been particularly challenging for our corporate and institutional clients, which has ultimately impacted our trading performance in the first four months of the year.”
Numis said that whilst corporate broking and advisory as well as average fees remain in line with the year before, ultimately, transaction volumes proved significantly lower.
As a result, the AIM-listed broker said it completed approximately 25% fewer deals compared to the first four months during the year before.
Similarly, Equities were also suffering, with Institutional income approximately 25% lower than the same period a year previously.
Alongside domestic political uncertainty, Numis also noted the impact of MiFID II upon its business. However, the financial services company said that they ‘were not materially impacted by the first year of implementation, despite the decrease in institutional budgets since the introduction of the regulation.’
Numis shares are currently down -8.49% as of 13:34PM (GMT).
Tuesday Market News Update
Elsewhere across the markets, shares in Danish jewellery retailer Pandora (CPH:PNDORA) ticked up after the company unveiled a cost-saving initiative for the years ahead.
In the mining sector, BlackRock Diamonds shares (LON:BRD) ticked up after the company announced an “exceptional” diamond recovery.
Pandora shares rise amid cost-saving plan
Pandora shares rose on Tuesday after the jewellery retailer unveiled plans to save 1.2 billion Danish crowns (£141.1 million) by 2022.
The Danish brand announced its ‘Programme Now’ plan with aims to cut costs following a disappointing 2018.
As part of the programme, Pandora said it would cut back on promotions, buy back slow selling stock and improve consumer experience by further investment in retail locations.
This follows a disappointing set of annual results for the retailer. In its annual results, the retailer said like-for like sales dipped 4% for the year, dropping a further 7% in q4.
In a letter to shareholders, Chairman Peder Tubourgh said that 2018 had been a difficult year for Pandora. He wrote:
“2018 was a tough year for Pandora. This is evident in our financial results. 3% revenue growth in local currency, an EBITDA margin of 32.5%, and negative total like-for-like are not satisfactory”
Chief Operating Officer said of the cost-saving plan: “Through Programme Now, we are taking immediate and forceful action to address the disappointing aspects of our financial performance in 2018,”
He continued: “We are confident that this company-wide business transformation will reignite Pandora, restore sustainable growth and support our industry-leading margins.”
Pandora was founded back in 1982, having started as a family run shop in Copenhagen, Denmark.
As of 2017, the jewellery retailer had 7,800 locations globally. The Danish brand is most well-known for its customisable charm bracelets which retail for £55.
Pandora shares (CPH: PNDORA) ticked up on the back of the announcement. Shares are currently trading +15.42% as of 12:51PM (GMT).
Greatland Gold announces “excellent results” from Havieron drill campaign
Greatland Gold (LON:GGP) revealed the results from its Havieron drill campaign on Tuesday.
According to the update, the results indicate that Havieron has the potential ‘to become a large, multi-commodity, bulk tonnage, underground mining operation’.
Greatland Gold said they believe that the results reveal that the company can “significantly extend” the known mineralisation intersected in the first drilling campaign.
As well as this, the company believe the results indicate that it can also establish new peak grades for copper and cobalt, including 12.38% copper (previously 8.45%) and 4,104ppm cobalt (0.4% cobalt).
Gervaise Heddle, Chief Executive Officer, commented:
“We are very pleased by these excellent results which further demonstrate the potential for Havieron to become a multi-commodity, bulk tonnage, underground mining operation of truly significant scale. These excellent gold and copper assay results flesh out the world-class intersection recorded at HAD005 and reveal a new peak copper grade for the system of 12.4% (HAD006). We are also very excited to see significant widths of elevated cobalt (in excess of 500ppm) in three of the reported drill holes (HAD006, HAD008 and HAD009).”
“We expect to re-commence drilling at Havieron in March 2019 and currently two rigs are booked with provision for additional capacity, if required, during the year. We look forward to providing further updates to shareholders regarding our plans for 2019 in the coming weeks.”
Greatland Gold is a precious metal exploration company. Alongside Havieron, its projects include Ernest Giles, Paterson, Panaroma and Firetower.
The firm is primarily focused in metal exploration in Australia. Greatland Gold is listed on the AIM market of the London Stock Exchange.
Greatland Gold shares are down -17.08% as of 11:18AM (GMT).
BlueRock Diamonds shares rise after “exceptional” diamond recovery
BlueRock Diamonds shares (LON:BRD) rose on Tuesday after the company updated the market on its continued recovery of “exceptional” diamonds.
The diamond company announced the recovery of an exceptional 8.97 carat diamond on Friday the 1st of February at its Kareevlei mine.
The Kareevlei licence area covers 3,000 hectares, of which the company have recovered several high-value diamonds.
According to the company, this will be the third stone independently valued in excess of $50,000 from the mine.
The other two record value stones were a 7.76 carat stone mined back in 2017, which was later sold for $10,070 per carat, as well as a 10.58 carat stone recovered the following year and sold for $7,047 per carat.
Adam Waugh, Chief Executive of BlueRock Diamonds commented on the discovery:
“The 8.97 carat stone recovered on Friday 1st February, along with two other high-quality 6.36 carat and 3.64 carat diamonds, reinforces the exceptional quality being produced at Kareevlei.”
Last month the company released a report on the inferred mineral resource for the Kareevlei kimberlite cluster at its South African mine. Shares rose on the back of the update in January.
BlueRock Diamonds was founded in October 2012. The company focuses its efforts in South Africa and sub Saharan Africa.
The firm was admitted onto the AIM market of the London Stock Exchange back in 2013.
Shares in BlueRock Diamonds are currently +5.38% as of 10:26AM (GMT).
HMV rescued by Canadian entrepreneur Doug Putman
HMV has been sold to the Canadian music entrepreneur Doug Putman. The deal will see 100 stores saved, but will result in 27 closing. Additionally, 1,500 jobs have been saved by the deal.
At the end of December, HMV slipped into administration for the second time. Following tough trading over the Christmas period, KPMG were appointed as the group’s administrators. Over 2,000 jobs were put at risk.
Will Wright, partner at KPMG and joint administrator, told Sky News:
“We are pleased to confirm this sale which, after a complex process, secures the continued trading of the majority of the business.”
“Our immediate concern is now to support those employees that have unfortunately been made redundant.”
However, Doug Putman, owner of the Canadian retailer Sunrise Records, purchased the film and music retailer. He emerged as the leading contender over the weekend, ahead of Sports Direct boss, Mike Ashley.