Greatland Gold share price sink despite discovery of new gold potential at Panama project
Precious and base metals exploration company Greatland Gold (LON:GGP) saw shares fall nearly 2 percent on Tuesday, despite announcing the discovery of additional gold potential at their Panorama project.
The project, located in the Pilbara region of Western Australia, covers a total area of 130 square kilometres and is prospective for both gold and cobalt mineralisation.
In its Northern license area, it found multiple historic rock chip samples with an elevated gold response along a 3.2 kilometre zone including results of 10.5g/t, 14.0g/t, 14.5g/t, 20.0g/t and 66.0g/t gold. Greatland’s technical team has completed field reconnaissance along this zone and has confirmed that visual indications of mineralisation are present.
In its Southern license area , detailed government geological mapping confirms the presence of lower Fortescue Group coarse grained sandstones and conglomerates at two locations.
Gervaise Heddle, Chief Executive Officer, commented:
“Historic rock chip and stream sampling results suggest that there is a 3.2 kilometre long zone of gold mineralisation in the northern licence area that extends along strike from historical gold mines immediately to the north of our northern licence application.
“In addition, a review of detailed government geological mapping has confirmed the presence of coarse grained sandstones and conglomerates adjacent to the Mt Roe Basalt at two locations in the southern licence application. This is the equivalent geological setting to that of the Purdy’s Reward and Comet Well prospects currently under the operation of Novo Resources Corp. (TSV-V:NVO).”
Shares in Greatland Gold are currently trading down 1.68 percent at 2.34 (1243GMT).
Carillion share price leaps 20pc after update on progress
Carillion shares soared over 20 percent on Tuesday, after it updated investors that it had agreed new credit facilities and deferrals on some of its debt repayments.
The troubled company said on Tuesday that it had agreed facilities totaling £140 million, which was “fully available to draw down now”. The new funds comprise a £40 million senior secured revolving facility maturing on 27 April 2018, secured over shares in certain of the group’s subsidiaries and over certain of the group’s assets, and a £100 million senior unsecured revolving facility maturing on 1 January 2019.
Carillion also announced that it has sold a “large part” of its UK healthcare facilities in a deal worth £50.1 million, adding that it hopes to dispose of the remaining contracts in its UK healthcare facilities management portfolio during 2018 in an effort to get the group’s finances back on track.
CEO Keith Cochrane said: “We remain focused on executing our disposals and cost savings programmes while continuing our discussions with our lenders and other stakeholders to explore further ways of strengthening Carillion’s balance sheet.”
The outsourcing group has seen its share price sink of late, plunging further last month after it reported a £1.15 billion loss to investors. Its share price rose on Tuesday in the wake of the announcement, and is currently trading up 9.49 percent at 47.90 (1054GMT).
Unilever shares sink 5pc as poor weather affects Q3 sales
Unilever’s (LON:ULVR) share price fell over 5 percent on Thursday, after natural disasters in the Americas and poor weather in Europe negatively affected its third quarter figures.
The company reported a 1.6 percent decline in turnover to €13.2 billion in the third quarter, with the stronger euro having a currency impact of 5.1 percent.
Underlying sales growth rose 2.6 percent, weaker than the previous quarter’s 3 percent rise and below analysts expectations. However the company experienced a surge of growth in its Emerging Markets division, in which underlying sales rose by 6.3 percent.
In a statement, Unilever’s CEO Paul Polman said: “For the full year, we continue to expect underlying sales growth within the 3 – 5% range, an improvement in underlying operating margin of at least 100 basis points and strong cash flow.”\
Shares in Unilever, who recently fought off a takeover from American food giant Kraft Heinz, are currently trading down 4.99 percent at 4,321.17 (1516GMT).
Interserve shares plunge over 30pc on second profit warning
Construction company Interserve (LON:IRV) saw shares tumble over 30 percent on Thursday, after a slow third quarter led to a profit warning.
Interserve said it now expected profits for the second hald of the year to be about half of those in the same period last year, adding that there was be a “realistic prospect” it will breach its banking covenants.
“We now believe there is a realistic prospect that we will not meet the net debt to ebitda test contained in our financial covenants for 31 December 2017,” Interserve said on Thursday, causing the stock to plunge over 30 percent in early morning trading.
The stock has now fallen by over 80 percent this year, after the company issued a first profit warning last month.
However, chief executive Debbie White remained confident about the group’s potential, saying on a conference call with analysts that there was “considerable potential for business improvement across the company”.
Interserve shares are currently trading down 25.56 percent at 67.00 (1501GMT).
Office company IWG share price plunges 34pc
Workspace company IWG (LON:IWG) saw shares plummeted over 30 percent on Thursday morning, after saying profit for 2017 would come in “materially below market expectations”.
Trading in London was hit by “weakness”, with the firm, formerly known as Regus, struggling to beat off competition from newer co-working spaces such as WeWork.
The company is now predicting full-year operating profits of between £160 million and £170 million, saying that spending plans may impact on the company’s short term growth.
In a trading update, IWG said sales had not been as high as expected over the quarter and that “the year to date reduction in mature revenues to 30 September 2017 has remained similar to that of the first half, with a decline of 1.9 per cent at constant currency.”
“This is disappointing, although the very strong uplift in sales activity so far in October, would suggest that this is in part potentially a timing issue”.
Shares in IWG are currently trading down 34 percent at 210.60 (1428GMT).
What is David Cameron up to now?
More than a year after David Cameron stepped down from his post in the wake of a crushing referendum defeat, little has been seen or heard of the ex-Prime Minister. So how does the man who was once tasked with running the country fill his days?
President of Alzheimer’s Research UK
One of the most high-profile jobs announced by Cameron in the wake of his resignation was his presidency of Alzheimer’s Research, which he took at the beginning of 2017. During his time in power Cameron had publicly supported the charity, launching a five-year £100 million Defeat Dementia fundraising campaign at a G7 event in 2014. “Tackling dementia was a major focus while I was Prime Minister, and although improvements in attention and research innovation have been rapid, it remains one of our greatest health challenges,” Cameron said of the announcement. The position is unpaid.Autobiography
Cameron has also signed a book deal to write an autobiography – previously, all other books about Cameron have been unofficial accounts. The deal is with publisher William Collins, part of the HarperCollins empire, is said to be worth up to £800,000. “I am looking forward to having the opportunity to explain the decisions I took and why I took them. I will be frank about what worked and what didn’t,” David Cameron said of his decision.National Citizens Service chairman
Shortly after tendering his resignation as Prime Minister, David Cameron announced a role at the National Citizens Service. Cameron championed the beginning of the NCS, a voluntary personal and social development programme for 15–17 year olds, during his premiership, making it legal with the National Citizens Service Act in 2017. This role is also unpaid.What is the new MiFID II legislation and does it affect me?
With impending changes to the finance sector looming, it’s important for both businesses and investors to get to grips with the latest Markets in Financial Instruments Directive, or MiFID II.
The EU legislation is the second part of original legislation introduced in 2007, designed to regulates firms who provide services to clients linked to ‘financial instruments’. This includes shares, bonds, units in collective investment schemes and derivative, as well as the venues where those instruments are traded.
The changes are currently set to take effect from 3 January 2018, with the end goal of increasing transparency in the sector, lowering the costs of market data and improving efficiency in trading behaviour. As a wide-ranging piece of legislation, MiFID II has the potential to affect a large proportion of firms in the sector.
What does the legislation do?
The legislation hopes to make the industry more transparent, approachable and increase trust in the sector. The price of financial advice often puts off potential investors, especially millennials; most advisory services charge a standard 3 percent, but there can be hidden ongoing charges of 0.5 to 1 per cent on top. MiFID II will mean firms will have to be clearer about their charge, and provide investors with a complete breakdown of their costs and charges as well as costs associated with managing your investments. They will also need to be more careful about the financial advice they give out, assessing the suitability of their advice and reassessing whether it is still suitable at least once a year. They also need to be more open about how independent they are, and whether they have any conflicts of interest. The recording of both mobile and landline calls will become obligatory, with the information needing to be kept secure for five year period in a secure and professional manner.How does it affect investors?
As part of the legislation, investment managers are required to keep up-to-date information on their clients. In the next few months before the legislation comes into force, your investment management team will ask your for updated personal details – if you don’t reply to their request, you will be prevented from trading as of January 3rd.Foxtons shares up 5pc despite weak revenue figures
Shares in estate agency Foxtons (LON:FOXT) rose over 5 percent on Wednesday, despite a fall in total revenue.
Revenue came in at £35.1 million during the three months to September 30th, down from £37.5 million the previous year. Total revenue for the year to date fell in 2017 to £93.7 million. Sales revenue fell to £10.3 million over the quarter, with revenues in their mortgage business, Alexander Hall, in line with the prior year at £2.3 million.
Nic Budden, CEO, commented in the results:
“This was a resilient third quarter performance when set against the challenging conditions in the London property market. We have maintained our relentless focus on delivering a leading proposition for our customers and in our lettings business we are pleased with the reaction to our recent growth initiatives.”
Foxtons have seen a string of a disappointing results over the last couple of quarters, continually battling falling profits and revenues as the property market in London continues to underperform.
Shares rose on the results however, with investors taking heart from a rise in the number of lettings.
OECD: Maintain close ties with E.U. or face costs
OECD today announced in their economic survey for the United Kingdom that the UK need to maintain close ties with the EU or risk damaging the economy significantly.
The report stated that “negotiating the closest possible EU-UK economic relationship would limit the cost of exit”.
Among the costs the report has listed is the negative impact to business investment that uncertainty surrounding Brexit will cause. This may also compound the “productivity challenge” the UK is currently facing, according to the OECD.
These findings are increasingly prevalent as the government continues to plan for a “no deal” scenario as the UK leaves the EU.
Today in the House of Commons, Richard Drax, Conservative MP, suggested that leaving the EU without a deal must be an option considered in order to honour the referendum result last year. David Davis, who is in charge of negotiations with the EU, said this was “entirely logical”.
This comes less than a week after it was revealed that the government will spend £250 million on preparation for the possibility of no deal.
The OECD report addresses the more specific scenario of a “disorderly Brexit”. It is reported that, were this to occur, it would push “the exchange rate to new lows”, “business investment would seize up, and heightened price pressures would choke off private consumption”.
Philip Hammond, Chancellor of the Exchequer, also stated in the forward of a recent white paper that the UK will have three strategic objectives concerning their future relationship with the EU: “ensuring UK-EU trade is as frictionless as possible; avoiding a ‘hard border’ between Ireland and Northern Ireland; and establishing an independent international trade policy”.
The risk of a “no deal” scenario may be that the UK will be unable to achieve any of these objectives.
The OECD however state “the outcome of Brexit negotiations is difficult to foresee”. They continue, suggesting leaving the EU may have the potential to “boost trade, investment and growth substantially”. This is mentioned with the caveat of the need for a transition period.
David Davis today suggested in that this transition period may not apply if a final deal is yet to be agreed.
Three hot emerging markets for 2017
For investors prepared to take a little risk in return for higher returns, emerging markets present an enticing opportunity. ‘Emerging markets’ describes economies growing at a fast pace and working to make their economic progress more sustainable.
Emerging markets are generally less efficient and have less strict standards in accounting and securities regulation than advanced economies, which include the United States, Europe and Japan). However, there is the necessary physical financial infrastructure, for expansion, including banks and a stock exchange.
Due to the volatile environments of emerging economies, investor returns can be hit or miss. These are our ones to watch…
Chile
Chile has been one of the fastest-growing economies ni Latin America over the past decade, with its economy growing at an average annual rate of above 5 percent since 1990. Chile’s fortunes have been affected this year by uncertainty from an upcoming election, but the country has continued to see a positive GDP figure of 2.75 percent in 2017. Its economy has been boosted by a rise in copper price, as well as the stabilisation of oil prices. The OECD expects to see growth of 2.8 percent in 2018, with a pickup underpinned by “improving external demand and, reflecting more accommodative financial conditions, investment.” The country has recently approved new emerging market strategies, with Chile’s risk regulator expanding the number of emerging market funds available to the country’s AFPs with the addition of funds from asset managers Investec and Morgan Stanley.Peru
Peru is the “rising star” of the South American countries, according to the IMF, boasting land rich in natural resources such as copper, silver, gold, timber and natural gas. Its GDP growth stood at 3.9 percent in 2016, with the Peruvian central bank raising its 2018 growth outlook to 4.2 percent in 2018. The current government headed by President Pedro Pablo Kuczynski, who was elected in July 2016, is in the midst of a plan to transform the country by prioritizing investment in technology and infrastructure projects, and marketing the country as a hub for international trade in the region. However, Julio Velarde, Governor of the Central Reserve Bank of Peru, sees three main economic challenges facing the country: “First, the last Government had a higher deficit than the new Government was expecting, which has meant reductions in public expenditure. Second, Peru – like many countries in Latin America – has been affected by the corruption scandals related to Brazilian companies such as Odebrecht. Third, earlier this year, we had the worst flooding in the north of the country since 1925.”India
There has been significant investor optimism in India since the election of Narenda Modi, who swore to push India to the forefront of international investment.
India is ripe for growth, as one of the world’s largest democracies boasting a young, entrepreneurial population with a high interest in education.
The two largest India exchange traded funds trading in the US are each up more than 25 percent year-to-date, outpacing the MSCI Emerging Markets Index which tracks the progress of emerging markets globally.
“The Indian economy is growing much faster than many other emerging markets and it’s quite natural that money is chasing Indian equities,” said Vinay Menon, head, equity capital markets, JP Morgan India.