88 Energy continues march higher after raising $6.48m of new capital

Liam Roche
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88 Energy continues march higher after raising $6.48m of new capital

88 Energy confirms subscription deal with ELKO International

88 Energy (LON:88E) announced on Monday through an operations update that the company raised $6.48m of new capital as it made progress in the drilling of the Merlin-1 exploration well in Alaska.

The energy company confirmed a share subscription deal with ELKO International, a contractor in the live drill programme.

ELKO has agreed to buy 360m newly issued shares valued at 1.8 cents each.

88Energy confirmed that the price was marked at a 225% premium to a prior placing which ran in February.

88 Energy’s share price is up by 32.9% to 1.475p per share on early afternoon afternoon trading. This follows a recent surge in March which has seen the company’s share price rise from 0.49p per share to 1.475p in less than two weeks.

The news comes as the Merlin well is being drilled down towards its primary Nanushuk targets, according to the company’s update.

Dave Wall, managing director of 88 Energy, commented in the impact of the ELKO deal on the company’s wider performance.

“The endorsement of the project by ELKO as we enter the critical phase of the drilling is encouraging and will serve to fund the Company’s share of the recently announced cost overruns.”

Airline shares plummet as doubts over international travel intensify

Liam Roche
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0
Airline shares plummet as doubts over international travel intensify

Airlines underprepared for further travel ban

Shares in airlines and other travel firms took a dip early on Monday, as cases of coronavirus are rising in Europe, and the vaccine roll-out looks as though it could stall.

IAG, owner of British Airways, fell by 15%, before recovering somewhat, while easyJet and Ryanair dropped by 7% each.

Fears are mounting that the UK will extend its ban on non-essential international travel into the vital summer period, starving airlines of their source of revenue that they have missed out on during lockdowns.

Scientific experts and government advisors are warning the Prime Minister to think twice before allowing international travel again.

“I don’t think people should be planning on summer holidays abroad until next year,” said Prof Kamlesh Khunti, a member of the Scientific Advisory Group for Emergencies (Sage) and Independent Sage at the University of Leicester.

“It’s been a hard lockdown, we are doing so well, we cannot jeopardise this now. Our rates are coming down, our vaccination [rate] is fantastic, and the biggest fear we have is new variants that the vaccines don’t work as well against.”

Russ Mould, investment director at AJ Bell, suggests airlines didn’t properly consider the possibility that travel could be banned well into summer 2021.

“Airlines and travel operators had seemingly refused to countenance the cataclysmic idea of another heavily disrupted summer and had been busily advertising to an increasingly inoculated UK population,” Mould said.

“The risk, and one being increasingly acknowledged by Government ministers, is this summer is even worse than last for the travel space as the UK keeps restrictions in place to avoid undermining its hard-won success with the vaccine,” Mould adds.

Helen Whatley, the social care minister said rising Covid-19 infection rates in Europe added to uncertainty that UK arrivals would be allowed to travel freely this summer.

“My advice would be to anybody right now is just to hold off on booking international travel,” she told the BBC. It just feels pre-mature to be booking international holidays at the moment.”

FTSE 100 falters as tensions rise between UK and EU

Liam Roche
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0
FTSE 100 falters as tensions rise between UK and EU

FTSE 100 was back below 6,700 on Monday morning as it shed 0.5%, lurking at levels last seen over a couple of weeks ago. There is a tense mood in UK markets and across the continent as policy makers clash over the vaccine roll-out.

“Following on from last Friday’s bumpy landing, the European markets couldn’t shake their anxieties at the start of Monday’s trading,” said Connor Campbell, financial analyst at Spreadex.

“Over the weekend European Commission chief Ursula von der Leyen issued a warning to AstraZeneca, and by extension the UK, stating that the EU has the power to ‘forbid’ exports of the vaccine.”

“And with a delay in 5 million Oxford/AstraZeneca doses from India already threatening the UK’s own vaccine timetable, there are fears that this EU export ban would further hinder the country’s restriction-easing plans.”

These anxieties, coupled with last week’s post-Fed bond sell-off, made themselves felt after the bell.

FTSE 100 Tope Movers

Kingfisher (5.05%), Natwest (2.57%) and JD Sports (1.35%) were the top movers on the FTSE 100 at early morning trading on Monday.

The biggest fallers on the FTSE 100 were IAG (-4.95%), Rolls-Royce (-2.84%) and Renishaw (-2.63%).

Kingfisher

Kingfisher, owner of B&Q and Screwfix, confirmed strong rises in sales and profit last year following a surge in DIY projects throughout lockdown. The company’s sales increased by 7.2% to £12.3bn for the year ending 31 January while post-tax profit came in at £592m, up from £8m the year before.

Adjusted profit after tax rose by 51% to £604m. Kingfisher confirmed its total dividend at 8.25p, well up on its payout from the year before of 3.33p per share.

Britain to Close Coal Power Station

Britain will have one power station still burning coal by the end of 2022 as EDF is set to reveal plans to close its West Burton A plant. It is anticipated the French energy company will confirm in the coming days that it will close down the Nottinghamshire station by September 2022 after operating for over 50 years. The plant’s 170 staff will soon be informed of the news as their jobs are now at risk while unions have been told.

Britain set to have one coal power station still standing

Liam Roche
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0
Britain set to have one coal power station still standing

170 jobs at risk following closure of West Burton A plant

Britain will have one power station still burning coal by the end of 2022 as EDF is set to reveal plans to close its West Burton A plant.

It is anticipated the French energy company will confirm in the coming days that it will close down the Nottinghamshire station by September 2022 after operating for over 50 years.

The plant’s 170 staff will soon be informed of the news as their jobs are now at risk while unions have been told.

Uniper’s Ratcliffe-on-Soar plant, also in Nottinghamshire, will now be the only power station still burning coal following the decision, ahead of the government deadline to phase out coal usage before the end of 2024.

The news is seen as a continuation of an area of success for the UK, particularly ahead of this year’s COP26 climate conference in Glasgow to cease building coal plants.

While coal was Britain’s largest source of electricity in 2013, it fell below 2% by 2020. A number of old plants have been closed down following carbon taxes and subsidies to wind and solar plants.

Sue Ferns, from the Prospect union, commented on the treat to the worker’s jobs as well as viable solutions:

“The priority has to be enabling a just transition for dedicated workers into new jobs. We cannot allow the skills we have built up to go to waste, and we mustn’t abandon those communities where power stations have been big employers,” Ferns said.

Centamin confirms 82% profit rise as gold surges in 2020

Liam Roche
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Centamin confirms 82% profit rise as gold surges in 2020

Centamin declares final dividend of 3 cents per share

Centamin (LON:CEY) announced an 82% increase in profit before tax for the year amid a rise in the price of gold.

Pre-tax profit surged to $315m from $173m the year before, while revenue increased by 27% to a record $828m.

The price received for gold rose to $1,766 per ounce, up by 26%, which outweighed lower production and higher costs.

The FTSE 250 firm declared a final dividend of 3 cents per share, bringing the total to 9 cents. However, Centamin did pay out its final dividend for 2019 in Q1 of 2020 as an interim payment.

Martin Horgan, chief executive of Centamin, commented on the results:

“It is a pleasure to be providing my first CEO Statement since joining Centamin in April 2020. It has been a year that has presented numerous challenges as we faced the global health and economic crisis from the COVID-19 pandemic. I am immensely proud of the resilience and dedication of our workforce whose commitment and proactive response has enabled the Company to successfully navigate this period,” said Horgan.

“Consequently, many of our workforce have been separated from their families and loved ones for extended periods and in some cases facing substantial periods in isolation, with limited physical exercise due to travel protocols. The mental and physical health of our people is a vital consideration and in 2020 we implemented several initiatives to help address this situation which included improved rest accommodation, robust fatigue management protocols, increased our health education and exercise programmes, upgraded our workforce health insurance, and introduced a third-party mental health and advice platform for our team.”

“The year also saw the commencement of a comprehensive review of the Company with the intention of building on the successes of the last 10 years to map out a strategy for the next decade and beyond which will deliver an optimised Sukari and the realisation of the value in our West African portfolio of exploration assets. I look forward to updating you in due course as we start to deliver into this strategy over 2021 and beyond.”

Kingfisher profit soars on lockdown DIY boom

Liam Roche
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0
Kingfisher profit soars on lockdown DIY boom

Kingfisher will pay a total dividend of 8.25p

Kingfisher (LON:KGF), owner of B&Q and Screwfix, confirmed strong rises in sales and profit last year following a surge in DIY projects throughout lockdown.

The company’s sales increased by 7.2% to £12.3bn for the year ending 31 January while post-tax profit came in at £592m, up from £8m the year before.

Adjusted profit after tax rose by 51% to £604m.

Kingfisher confirmed its total dividend at 8.25p, well up on its payout from the year before of 3.33p per share.

The owner of B&Q and Screwfix confirmed that its online sales rose by 158% which now represents 18% of the group’s total sales, while click and collect purchases soared by 226%.

Thierry Garnier, chief executive at Kingfisher, outlined the company’s strategy for the year gone as well as its immediate outlook.

“The dedication and commitment of our 80,000 colleagues has enabled us to make substantial strategic, operational and financial progress this year. Kingfisher is coming out of the COVID crisis as a stronger business, with an improved competitive position in all key markets, strong new customer growth and a step change in digital adoption. I would like to express my personal thanks to all our teams for their incredible efforts in the most testing of circumstances,” said Garnier.

“We rolled out our ‘Powered by Kingfisher’ strategy without delay and even accelerated in many areas. Our distinct retail banners are now empowered and much more agile, which enabled them to react quickly in what was a volatile situation last year, supported by the scale, strength and expertise of the Kingfisher Group.”

“We continued to ‘focus and fix’ key aspects of the business. We have now finalised the fundamental reorganisation of our commercial operating model, and introduced new trading approaches tailored to local markets. In France, our performance and competitive position have significantly improved as we’ve addressed operational issues and strengthened our teams and ranges. There is still work to do, but our progress and the overall engagement of our teams are clear to see.”

The FTSE 100 retailer said the new fiscal year began well, with sales in the first quarter up 24%. It said it expects a low double-digit sales growth for H2 but warned over tough sales comparatives on a like-for-like basis for the period.

 

New standard listing: Caerus Mineral Resources

Andrew Hore
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0
New standard listing: Caerus Mineral Resources

Caerus Mineral Resources is exploring for copper, gold and silver in areas in Cyprus where there has previously been mining. The focus is the Kalavasos project, where there was mining prior to the Romans, and Mala, which is part of the Vrechia project.
The board has extensive experience of the mining sector. Professor Michael Johnson has worked with Rio Tinto and was a director of AIM-quoted Savannah Resources, while Andrew Daniels has held roles with many large mining companies. Chief executive Martyn Churchouse. Has worked at AIM mining companies, including a role as exploration director at ...

Zotefoams on a firmer footing

Andrew Hore
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0
Zotefoams on a firmer footing

Zotefoams (LON: ZTF) is reporting its 2020 figures on 23 March and these should indicate how well the foams manufacturer bounced back in the second half. The new factory in Poland is up and running and the outlook is good.
Switzerland based Sekisui Alveo sold its 7.8% stake earlier this month, with the Business Growth Fund, Schroders and Highclere International Investors buying shares. They paid 350p a share, which is well below the current price of 429p.
2020
Full year revenues are expected to increase from £80.9m to around £85m, while pre-tax profit will dip below last year’s figure of £9m. ...

National Grid Share Price: a safe space for income investors?

Liam Roche
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0
National Grid Share Price: a safe space for income investors?

National Grid Share Price

The pandemic has proved to be a testing time for a broad swathe of FTSE 100 companies, including National Grid. On 21 February 2020 its share price sat at 1,063.8p before plummeting to 860.4p per share by 13 March. Over the past 12 months, however, National Grid steadied somewhat, down by 2.48%. Since the turn of the year, the utility company is down by 2.68%.

National Grid Share Price

Dividend

National Grid has one of the highest dividend yields out of all UK companies and has been the stock of choice for those seeking income from their investments. In 2019 and 2018 the company paid out total dividends of 48.57p and 47.34p respectively, at yields of 5.6% and 5.7%. The utility company paid out an interim dividend of 17p in January and will announce its final dividend on 31 March 2021.

While historically the dividend has been sustainable over a number of years, which is a positive sign, this is not a guarantee that it will be in the future. Last year the company paid out over 100% of its profit in dividends, which is not sustainable, although it was under unusual circumstances.

For the company to continue paying a sizeable dividend it will need to secure its income levels for the coming years. This could come down to its strategy of becoming more weighted to electricity than other forms of energy.

Renewable Energy

National Grid could be well poised to capitalise on the ongoing rise of electrical vehicle usage, and the more general move away from fossil fuels, after the company agreed to purchase Western Power Distribution (WPD). National Grid confirmed its plans to acquire PPL’s WPD electricity distribution assets, for an equity value of £7.8bn.

Laura Hoy, an equity analyst at Hargreaves Lansdown, commented: “From a strategic standpoint, it makes sense as the world shifts away from fossil fuels usage.”

“Not only are homes consuming more, but the boom in electric cars represents an opportunity for NG, and the WPD acquisition puts it one step closer to seizing it. But having the capacity to deal with a surge in electricity usage and being allowed to profit from it are two different things.”

The acquisition will take National Grid’s electricity assets from 60% to 70% and position it as a major player in the electric vehicle industry, which could bode well for its long-term prospects.

AEX Gold provides update on progress for revised development plan

Liam Roche
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0
AEX Gold provides update on progress for revised development plan

AEX Gold deploys mining consultant to conduct assessment

AEX Gold (LON:AEXG) today informed its investors that the company is making significant progress as it reviews the development plan of the Nalunaq project.

Following a decision to postpone development while lockdown measures remained in place, the AIM-listed company announced that following a consultation with shareholders, there was a high degree of support for the decision made by the board.

AEX Gold also said that it deployed Ausenco, the mining consultant, to conduct a thorough, independent, review of all technical aspects of the mine development.

Once the review is complete, the board will better understand the necessary plans and scheduling, allowing the company to bring a revised plan back to its shareholders.

Included in the revised plan would be the issue of costs and further capital requirements, in addition to an outline of how the company can manage them. AEX Gold also said in its statement that it would report its new plan to investors as soon as reasonably practicable.

Eldur Olafsson, chief executive of AEX Gold, addressed shareholders further, reiterating his desire earn returns from the company’s assets.

“I am very conscious that our shareholders are keen for an update on our Nalunaq development plan, and especially our capital position, in light of our last announcement on 10 February. I am pleased to be able to report that significant progress is underway, with multiple workstreams involving the Board, the executive team, third party providers and our external advisors.”

“We continue to focus all our efforts on the very tangible and valuable prize of our wider portfolio in Greenland and of Nalunaq in particular. I am extremely grateful for the support shown recently by so many of our significant shareholders, and on behalf of the Board would like to strongly reiterate our determination to realise the maximum possible value from our significant portfolio of assets.”

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