This morning, the focus was on the banking sector after the Independent Commission on Banking (ICB) released its final report, which, as expected, recommended separating banks’ retail divisions from their investment banking operations.
Traders are now waiting for the UK’s major banks to review the details of the report and issue a response.
Part-nationalised bank Lloyds (LON:LLOY) told investors that it is currently “assessing the full implications of the report and may provide a further update to the market once we have had the opportunity to review the report in detail”.
Oil and gas companies also generated plenty of interest this morning. Today's news included a new discovery made by Max Petroleum (LON:MXP) in Kazakhstan.
The company said the SAGW-1 exploration well in the Sagiz West prospect has reached a depth of 1,406 metres with electric logs indicating 27 metres of net pay, including 21 metres of oil and 6 metres of gas pay.
Based on current data from the well, Max estimates oil in place in the Sagiz West Field at 66 million barrels with expected recovery factors ranging between 20 to 30 percent.
Fellow small cap Enegi Oil (LON:ENEG) said preparations for the next stage of the workover of its PAP No.1 STNo.3 well onshore Newfoundland are now close to completion.
The company said that the results of this extended sequence of detailed tests and analyses are positive and it has now started negotiations with service suppliers to undertake the programme.
Whilst recommencing work at the Garden Hill South site has been the company's primary focus during recent weeks, work is also ongoing to finalise plans for the proposed seismic survey over the PL2002-01 lease area.
Enegi expects to conduct this survey during winter 2011/2012.
“We look forward to the commencement and outcome of the next phase of the work programme, which will be the culmination of recent diligent and prudent planning,” said chief executive of Enegi Oil Alan Minty.
Elsewhere in the sector, Range Resources (LON:RRL) announced today that the first well drilled in its initial 21 well program in the Morne Diablo Block, onshore Trinidad, has been successfully completed with the well producing high quality oil at initial rates of 20 barrels per day.
“It is important to note that this first well was a replacement in fill well to an old well, hence the company is extremely pleased with the success of this replacement well given the higher than expected net pay zone encountered,” Range said in today’s statement.
Moving to the mining sector, Cluff Gold (LON:CLF) today reported its interim results for the six months to end June.
The group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) reached US$11.1 million, an increase of 158 percent over the second half of 2010.
Production at the Kalsaka mine in Burkina Faso amounted to 31,518 ounces (oz) of gold at US$842/oz compared to 33,242 oz at US$943/oz in the second half of 2010 and 40,831 oz at US$672/oz in the first six months of the previous year.
Cluff reported a strong start to the second half at Kalsaka, where production reached 16,000 ounces of gold in July and August as grades strengthened.
The group remains on track to hit its production target of 70,000 ounces for the full year.
Fellow gold miner Medusa Mining (LON:MML, ASX:MML) told investors this morning that drilling at its Bananghilig gold deposit in the Philippines is verifying the resource of 650,000 ounces and extending mineralisation laterally and to depth.
The drilling results reported today included intersections of 23.4 metres at 2.33 grammes per tonne (g/t) gold and 5.3 metres at 20.14 g/t gold.
“The geology is complex but now with 93 new holes already completed, a good understanding of the geology and mineralisation controls is taking shape,” said chairman of medusa Mining Geoff Davis.
“This mineralised system has the potential to grow significantly beyond the three open zones already being defined and totalling approximately three kilometres of mineralisation.”
Sector peer Horizonte Minerals (LON:HZM), which is focused on nickel, said that the results from the infill resource drilling programme at its wholly owned Araguaia nickel project in Brazil continue to be positive.
The drilling highlights include an intersection of 9.1 metres grading 2.74 percent nickel from the Pequizeiro target. High grade intersections on the Baião target included 15.1 metres grading 1.82 percent nickel and 19.7 metres grading 1.63 percent nickel.
Horizonte remains on target to announce an upgrade for the Araguaia resource in the fourth quarter. The current resource estimate – which is compliant with the NI43-101 standard – stands at 76.6 million tonnes (Mt) at 1.35 percent nickel.
Back to precious metals focused companies, Pan African Resources (LON:PAF) told investors today that revenues from gold sales climbed 15.62 percent to £79.2 million in the twelve months to end June compared to the previous year.
As a result, the group’s profits jumped 20.28 percent to £17.2 million. EBITDA increased by 14 percent to £28.5 million.
Pan African has also managed to increase its resource and reserve inventories with its resources climbing 22.46 percent to 5.67 million ounces (Moz) and reserves rising 51.29 percent to 1 Moz.
The group had £10.1 million in the bank at the end of the period.