Evolution Securities mining analyst Charles Kernot called African Aura’s (LON:AAAM, TSX-V:AUR) improved metallurgical results from the Putu iron project "very good news". He highlighted that the results indicate that more iron units could be produced for every tonne of material mined and that iron recoveries of the order of 95% could be achieved.
Evolution reiterated its Buy recommendation targeting 210p.
Similarly, Fairfax Securities’ mining expert John Meyer said: “The test work for Putu is a good result for African Aura adding confidence in the Putu project that should add value to the group.”
“We look forward to ongoing results from this project and other iron ore and gold projects in the company’s portfolio.”
Seymour Pierce analyst Asa Bridle was upbeat on African Eagle (LON:AFE) after the company increased the Dutwa project’s nickel resource by 12%, with a total nickel resource of 917,000 tonnes.
According to Seymour Pierce the update provides African Eagle with net resources of 619,000 tonnes of nickel and 14,900 tonnes of cobalt, equating to an in ground value of US$15.9bn (at today’s spot prices).
“Our analysis shows that other nickel laterite development companies are currently trading on a weighted average EV/lb nickel resource of USc 2.5/lb vs. AFE on USc 1.7/lb”, Birdle said.
“This would imply a current value for the Dutwa project of around US$20m, or 5.5p/share.”
“Meanwhile deals involving junior nickel stocks since 2007 have been transacted at between USc 6-7/lb depending on the nickel price assumed ... This range would average AFE's current stake in Dutwa at around 14p/share.”
The analyst said the momentum continues to build behind African Aura, with other aspects of the ongoing feasibility study also proceeding well.
Yesterday, shares in Gemfields (LON:GEM) shot up 37 per cent after the group posted a maiden profit and revealed that production at the Kagem mine in Zambia hit record levels in the first month of the new financial year.
The results were followed by a very positive assessment of Gemfields’ prospects by the company’s broker Canaccord Genuity.
Analyst Tyler Broda has placed a 10p a price target on the stock, which he rates a “speculative buy”.
“We recently visited Gemfields’ Kagem emerald mining operations in Zambia and have reviewed our forecasts and assumptions,” he said.
“Following today’s financial results, and encouraging results from recent tenders, the company has moved back to profitability, and possesses a business model that we believe is on the cusp of growing significantly in the coloured gemstone space.”
Wednesday’s drop in the Aurelian Oil & Gas (LON:AUL) share price yesterday may have been the last buying opportunity prior to key drilling news in Poland, according to FinnCap analyst William Arnstein.
In the broker’s ‘First Thoughts’ note to clients today, Arnstein emphasised that the dry joint venture well in Bulgaria was immaterial to the AIM stock’s valuation and investment case.
“With shares off 5% on this news we believe a buying opportunity may have been created, which may be the last prior to well results from the Traezk-2 currently drilling in Poland,” Arnstein said.
KBC Peel Hunt analyst Paul Cuddon looked at Epistem’s (LON:EHP) full-year results.
The analyst said that the adult stem-cell specialist continues to operate a strong and sustainable business model.
In a note, Cuddon said that Epistem has several near term catalysts, and the bullish analyst maintained his ‘Buy’ rating and 515p target.
“The addition of a diagnostics platform takes the company closer to the patient and represents a sound strategic fit with the Biomarker business,” Cuddon said.
“The platform takes Epistem into the personalised medicine space, with commercial launch possible in 2011.”