logo-loader

London Mining, Gemfields, EMED Mining, Matra Petroleum plus others feature in Fox-Davies Newsflash

Last updated: 20:37 27 Mar 2012 AEDT, First published: 19:37 27 Mar 2012 AEDT

no_picture_pai

Mining News  

EMED (LON:EMED) has released its FY'11 results released. The key point emerging is that after making huge progress in FY'11 in planning the restart of the Rio Tinto Copper Mine and its associated regulatory permitting, the Company believes this is heading for finalisation by 3Q'12. With Goldman Sachs now mandated to provide finance of $175M and Yanggu Xiangguang Copper Co. Ltd agreeing a joint funding and limited off-take rights, the Company is now placed to restart the project having negotiated the necessary regulatory hurdles.

Edenville Energy (LON:EDL) announced its resource estimate for open pit coal production at Rukwa, Tanzania has been delayed. Following the drill results on 13 Dec'11 the Company stated it expected the resource statement to be due in 1Q'12; however the Company didn't get the results to its consultants until 15 February, not giving them enough time to do the resource estimate by the end of the quarter.

Bumi (LON:BUMI) has released its FY'11 results, the first since it floated in June and announced the appointment of a new chairman, CEO and CFO. The Company posted a pre-tax loss of US$115m despite an increase in coal prices due to increased costs on higher fuel prices and increased stripping ratio. Production was up 9% and the Company is targeting 75mtpa in the current year. Nat Rothschild, has stepped down as co-chairman, but remains a non-exec director.

Jubilee Platinum (LON:JLP) has issued a trading update as required under JSE listing requirements as it is expecting an increase in the loss per share for the interim period to 31st Dec'11 of between 55% to 75%. This is despite the company producing its initial export platinum alloy in March and continuing to increase revenues as Middleburg ramps up production since Nov'11/ Ferroalloy production in Jan'12 was 774t and 818t in Mar'12.

London Mining (LON:LOND) has released the results of its BFS for the ISUA iron ore project in Greenland, an update on the scoping study released in February 2011. Based on the current indicated resource, the mine life has been reduced from 15 to 10 years. However, this could extend back to 15 years with further drilling to convert the current 727mt Inferred Resource into Indicated. The expected operating costs have increased from US$30/t to 46/t, due to increased power consumption due to ore being harder than original estimated and Capex increased by 15% from 2.05bn to 2.35bn. The company will now begin permitting and continue the financing process.

Kazakhmys (LON:KAZ) announced its Audited FY'11 results. Higher metals prices lifted EBITDA to US$2,925, including a US$966m contribution from ENRC in which KAZ has a 26% interest and net profit was US$1,498. Copper costs are in line with guidance at 114c/lb, but cost pressures remain.

Red Rock Resources (LON:RRR) following yesterday's disappointing interim results, RRR has announced it has increased its holding in Resource Star Ltd (ASX:RSL) to 46.44% after a Rights issue by Resource Star for a total cost of A$361,976.2 and the extinguishing a A$264,497 debt. Another shareholder in Resource Star has undertaken to subscribe for 15m shares which were not taken up under the rights issue, resulting in RRR being diluted back to 40.32%

Orogen Gold (LON:ORE) has released its FY11 results. Following exploration in and around the Delo Jovan gold project in Serbia, the Company had a remaining cash balance of £2m at year end. Having spent £549k, Orogen is required to spend a further £397k to achieve a 55% earn-in to the project and is scheduling a diamond drilling programme for 2Q'12.

Bezant Resources (LON:BZT) has terminated its existing joint venture agreement with Ashanti Exploration (Tanzania) for the Mkurumu Gold Project, Tanzania. Having failed to define an inferred resource, the Company has renegotiated a 5% free carry and 2% Net Smelter Return, subject to Reserve Bank of South Africa and Tanzanian Government approval. The Company has no further on-going cost exposure for the project and will instead continue to focus on the Mankayan copper/gold porphyry project in the Philippines and the Eureka copper/gold deposit in Argentina.

Gemfields (LON:GEM) released the results of its sales at the Singapore Rough Emerald Auction held between 19-23 March. Gemfields placed 0.77m carats on offer and sold 0.69m carats at an average price of US$37.97/ct, for a total of US$26.2m and US$68.9m in aggregate sales for the year. Although the Company received US$42.71/ct in Jul'11, the quality of the stones was far better with the stones sold in Singapore.In Johannesburg during Dec'10, Gemfields sold similar quality stones and received an average US$38.25/ct suggesting that there is continuing strong demand and prices for emeralds. The Company also used the auction to test demand for rough emeralds and beryl from other sources and sold roughly half of this material by value. Although not currently material, this provides new opportunities for the Company.

Oil & Gas News 

Volga Gas (LON:VGAS) Today's Results underline what has been a transformational year for the Company, with 2011 seeing the Company enter 2012 with a better cash flows and a growing core with which to provide fuel for future growth. The $10mm debt facility provides much needed development flexibility, which should see the Company close 2012 in a better position than it started. With current production up a further 16%, and an active exploration programme, the opportunity for further growth remains significant. In this news:

Group average production increased 93% to 2,147 barrels of oil equivalent per day (2010: 1,115 bopd) - Current production of approximately 2,500 boepd

Revenues increased 118% to US$28.6 million (2010 US$13.1 million).

EBITDA up 256% to US$8.9 million (2010 US$2.6 million).

Net loss of US$1.1 million (2010: net loss of US$16.9 million).

Operating cash flow before working capital of US$7.6 million (2010 US$5.5 million), after offsetting US$3.1 million of gas sales for loan repayments (2010: nil).

US$10.1million in cash at 31 December 2011 (US$26.6 million at 31 December 2010).

Matra Petroleum (LON:MTA) Stepping Up: Today's news continues to highlight the progress that the company is making towards monetising Sokolovskoe. In this news:

A13 production commenced.

Currently flowing oil naturally.

Production is also likely to be affected during the next few weeks due to the start of the thaw.

Afren (LON:AFR) 2011 results Underline Progress 2011 has been a transitional year for the Company, and it now has a portfolio which offers balance between exploration and production activities spread across geographies. It has lined up a high impact exploration programme which ensures that the potential for medium-long term remains very strong. In 2011, the Company commenced oil production from Ebok field - a significant milestone. Further it also expanded its global presence through a series of asset acquisitions in Nigeria, East Africa and the Kurdistan region of Iraq. In this news:

Net working interest 2P reserves increased by 132% to 185 mmboe.

Net 2P/2C reserves and resources increased by 633% to 995 mmboe

Cash at bank $292 mm

Revenues were up 87% y-o-y to $597mm led by a 34% increase in hydrocarbon production (19.1 mboed) and 37%/54% rise in oil/gas price realizations.

Net profit almost doubled to $125mm with cash flow from operations recording 62% growth to $338mm.

Group firmly on track for 2012 production of 42-46 mboed.

Net debt at $548 mm (Gearing 45%)

Currently participating in high impact wells offshore Ghana and onshore Kurdistan region of Iraq.

First phase of Okoro East to be fast tracked to H2 2012.

Entry into the Kurdistan region of Iraq through acquisition of a 60% participating interest in the Barda Rash PSC and a 20% participating interest in the Ain Sifni PSC.

GeoPark Holdings (LON:GPK): Colombia Calling -This acquisition in Colombia at once diversifies the Company away from the political regressive regimes in Latin America, and places more emphasis on one of the more open, market driven economies in the region. We believe that by deemphasising Argentina, the Company has strengthened its portfolio and lifted the medium to longer-term outlook. In this news:

This acquisition provides GeoPark with interests in 10 blocks in Colombia along with 9 blocks in Chile and Argentina.

The assets acquired from Hupecol comprise the La Cuerva and Llanos 62 blocks (approximately 90,000 acres) in the Llanos basin in Colombia

Cuerva Block is currently producing 2,000bopd and has 2P reserves estimated by GeoPark to be 8mm bl oil

Two independent reserve evaluators estimated the 2P oil reserves attributable to the La Cuerva Block at 16 mmbo and 10.8 mmbo in March and October 2011, respectively.

Llanos 62 Block, located adjacent to La Cuerva, is an exploration block, with no proved oil and gas production or reserves to date.

Llanos 62 Block is currently undergoing a 110 square kilometre 3D seismic survey.

Faroe Petroleum (LON:FPM):Flush With Success, The Trick is to Continue -It seems to be that 2011 has been a year in which a number of Companies have made the transition to Producer from Explorer, which is good for the sector; Faroe is now one of them. This balance has been brought about by monetisation of Maria discovery through swap deal, to discoveries on Butch in Norway and its first UK operated well - Fulla. We believe that while 2011 has been a transformational year, the momentum needs to be carried into 2012, and with a capex budget of up to £180mm, we expect this to be the case. In this news:

Fivefold increase in 2P reserves to 23.8mm boe

capex of up to £180mm - £100mm on exploration and up to £80mm on developments

Average production of approximately 2,500boepd (economic production averaged approximately 10,100boepd)

Turnover increased more than five-fold to £80.2m (2010: £15.1m)

EBITDA increased significantly to £40.9m (2010: £6.0m)

Profit before tax, increased to £14.3m (2010: £26.0m loss)

Secured $250m (approximately £156m) reserve based lending facility.

Cash of £111.6m (31 December 2010: £132.2m)

Award of 7 new licences (3 operated) in Norway 2011 APA Round. 

Oilfield Services News

Technip (EPA:TEC) Technip yesterday announced a major subsea contract for BP in UK North Sea to develop the subsea infrastructure for the Quad 204 project, located West of Shetland. This is Technip's largest contract to date in the UK North Sea, worth approximately €600M.The Quad 204 project, approved in July 2011, involves replacing the existing Schiehallion production facility with a new purpose built FPSO, and installing extensive new subsea infrastructure. This major re-development will enable the potential recovery of an additional 450 million barrels of resource and extend production through to 2035.

The contract awarded covers a broad scope of work, including the removal of the existing Schiehallion FPSO and mooring system, recovery of all existing flexible risers and dynamic umbilical systems, the positioning and installation of a new FPSO and associated mooring system and anchor piles and supply and installation of 21 dynamic flexible risers. The offshore campaign is expected to begin in 2013.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

10 hours, 53 minutes ago