By Matt Birney – The West Australian
In a move that might have the environmental mafia scratching their heads, Classic Minerals and Australia’s federal scientific research outfit CSIRO have teamed up to study the potential correlation of tree size to gold mineralisation at Classic’s Forrestania Gold Project in Western Australia.
The company said that in 2017, it had noticed a correlation between tree size and gold mineralisation at the project in the Goldfields region.
Major deposits and prospects such as Lady Magdalene and Lady Ada were covered by large gum trees while barren areas were covered by typical Yilgarn shrubs and bush.
CSIRO and the Australian Government’s Innovation Connections grant will fund the majority of the six month project.
Activities to be carried out include the production of a distribution map in tree sizes by image analysis, hylogging and additional sampling of selected holes.
Extensive rockchip and regolith sampling will also be carried out throughout the curious project.
The program will generate a high-quality mineralogical and geochemical dataset including integration of geology databases and will determine the spatial relationships between the tree sizes, the landscape and the mineralised areas via statistical data analysis.
Whilst the technique is not likely to put traditional drilling contractors out of business anytime soon, it just might make them a little nervous.
If proven to work, it will allow Classic to rapidly generate new targets without ground disturbing exploration.
The project could help guide the company with geochemical sampling and geochemical data interpretation on the surface.
It may also help assess mineralisation at depth and the relationship to landscape and tree size.
Classic Chief Executive Officer Dean Goodwin said: “It quickly became apparent from field work that there appears to be a relationship between tree-size and mineralisation at FGP – we are glad to follow up this theory with CSIRO because it will help us better understand the geology and controls on mineralisation in FGP.”
“As an exploration geologist, it is always exciting to be adding to the datasets available to us for target generation and geological theories.”
“Having CSIRO undertaking this research project alongside Classic will allow us to share and validate our own hypothesis and research efforts/data that we have been working on for the past 12+ months.”
Whilst somewhat unusual, this is not the first time that trees have been thought to be a potential indicator of gold mineralisation.
The CSIRO has previously published research showing that Eucalyptus trees in Western Australia’s Kalgoorlie region are drawing up gold particles from the earth via their extensive root system and depositing the gold in their leaves and branches.
As eucalypt roots extend tens of metres into the ground, this could indicate the presence of gold ore deposits buried under sediments that are up to 60 million years old without the need to drill.
Last month, Classic started a follow-up drilling program at 4 major prospect areas at Forrestania.
Drilling at Lady Magdalene is aimed at better defining the orientation of high-grade cross cutting gold lodes in order to sweeten the large, shear-hosted system currently grading 1.32g/t for just over 180,000 ounces.
The similarity of these lodes to those found at the nearby historic Lady Ada mine, has given Classic reason to believe that Lady Magdalene might also be hosting a high-grade gold deposit.
Forrestania has an existing Mineral Resource of 5.9 million tonnes grading 1.25 grams per tonne gold for 240,000 ounces of contained gold.
Classic’s partnership with CSIRO is fascinating and will no doubt get a few geological wags talking.
Who knows, maybe the geologists of the future will have their ore bodies marked out before smoko just by looking at the trees – stranger things have happened I guess.
Begbies Traynor BEG has published its Red Flag Alert for the second quarter of 2018, showing that 472,183 businesses were experiencing ‘Significant’ financial distress: at the end of June 2018, up 9% compared to last year. However the rate of increase is declining and has fallen 1% compared to the first quarter. The south of England was the worst affected area, with London being the worst performing region with a rise of 17% compared to last year. Begbies believes that after a poor first quarter we may now be seeing tentative signs of stability returning to the UK economy.
United Carpets Group UCG is pleased with its performance for the year to the 31st March, with like for like sales increasing by 3.2% and revenue up by 2.5% It is proposing to increase the final dividend from 0.275p. per share to 0.285p after profit before tax remained almost flat at £1.52m compared to £1.53m. It should be noted that since the year end, like for like sales have fallen by 1.6%.
FDM Group FDM produced what it decribes as a solid performance in the first half of 2018. Despite revenue for the six months to the 30th June growing by only 1% the interim dividend is being increased by 21% after rises of 12% and 17% respectively in profit before tax and basic earnings per share. It is anticipated that results for the full year will be in line with expectations.
Ascential plc ASCL The half year to the 30th June produced good organic growth with like for like revenue rising by 14% or 7% on a constant currency basis. Reported like for like operating profit fell from £32.2m. to £28.7m. but the interim dividend is being increased by 6% from 1.8p per share to 1.9p. Current trading is in line with expectations for the full year.
Judges Scientific plc JDG expects the interim results for the half year to 30th June will show strong progress in revenues, EBIT and earnings per share. The solid order book from the beginning of 2018 has enabled momentum from 2017 to be maintained, with currency movements having a positive impact.
Netalogue Technologies (NTLP) moved back into profit in the year to March 2018 and it is paying a dividend of 0.4p a share. The e-commerce technology company edged up revenues from £1.04m to £1.07m, while a loss of £46,000 was turned into a profit of £82,000, even after amortisation of £70,000, up from £20,000 in the previous year. Net assets of £770,000 include £502,000 of cash. There are a growing number of opportunities for this financial year.
Sativa Investments (SATI) has signed an IP sharing agreement with Canada-based Veritas Pharma. This could help with Sativa’s plans to grow medicinal cannabis and also help to choose a particular strain.
Equatorial Mining and Exploration (EM.P) has completed its investment agreement with ARQ Minerals and this formalises the commitment to work together in Nigeria. The St Leonard’s mine is supplying trial amounts of coal. ARQ helps to manage the mine and it is subscribing £50,000 each for two tranches of shares in the operating company, which will take is stake to 50%. ARQ will also own 1,000 million warrants exercisable at 0.02p a share. ARQ has committed to producing a minimum of 40,000 tonnes of coal and every 1,000 tonnes produced above this level will earn an additional 0.625% stake in the operating company, which can take the stake up to a maximum level of 75%. ARQ and Equatorial will be paid 10% of gross profit each month with the rest of the profit shared in line with their equity interests.
Welney (WENP) has announced a general meeting to vote on the appointment of Mark Jackson and Mark Chapman as directors.
Secured Property Developments (SPD) still had £627,000 in the bank at the end of June 2018 because it has not been able to find an investment at a realistic price.
Blockchain investment company Coinsilium Group (COIN) says that Malcolm Burne has been appointed as project adviser to the company’s blockchain platform development company TerraStream.
New director Melissa Sturgess has bought 9.23 million shares in Imperial Minerals (IMPP) at 1p each. That is a 29% stake.
Medicinal cannabis sector investment company High Growth Capital Ltd (HASH) had £522,000 in the bank at the end of March 2018 and it has raised £250,000 at 0.4p a share.
Parity (PTY) is still on track to achieve double digit profit growth this year. The IT recruitment and consultancy services provider remains modestly rated even though the share price has risen substantially this year.
Yu Group (YU.) says interim revenues increased by 69% to £35m. The energy supplier expects full year revenues to be at least £82m, which means that operating profit should rise by three-quarters. There is £18.2m in the bank.
Frontier IP Group (FIPP) says that portfolio company Tarsis Technology has entered into a collaboration with a major crop protection products company. The company will provide the funds to further develop the Tarsis technology to deliver chemical pesticides and fungicides in a more controlled way. In return the company gets exclusive rights to particular agrochemicals usage and Tarsis would get royalties from commercial products. Frontier IP is lending Tarsis £150,000 in return for share options.
Consumer healthcare business Venture Life Group (VLG) is raising £18.75m at 40p a share to help finance the acquisition of Dentyl Dual action mouthwash and BB Mints for £4.2m and repay £3.7m of convertible loan notes. The remaining cash will be used for further acquisitions. The share issue more than doubles the number of shares in issue.
Odey has withdrawn its general meeting requisition at Tungsten Corporation (TUNG) following the appointment of Anthony Bromovsky and Duncan Goldie-Morrison to the board.
600 Group (SIXH) has offloaded its pension scheme to specialist insurer Pension Insurance Corporation. The scheme will be wound up and surplus funds after tax will be returned to the machine tools supplier. That could be up to £4m. Full year revenues grew from $58.8m to $66m, while underlying pre-tax profit improved from $2.65m to $3.05m. That excludes the gain on the sale of ProPhotonix (PPTX) shares.
Integumen (SKIN) is raising £700,000 at 0.65p a share and renegotiated the deal with food supplements supplier Cellulac so that it will acquire a 9.35% stake. Cellulac’s chief executive and chief operations officer will join Integumen in those roles. Cellulac will grant Integumen a licence to sell its products in certain territories.
A positive trading statement from audio visual equipment distributor Midwich Group (MIDW) has led to a forecast upgrade. Earnings per share forecasts have been raised by 3% for each of the next three years. The 2018 profit is expected to be £28.3m and earnings per share 27.6p. The interims will be published on 11 September.
EKF Diagnostics (EKF) has signed a manufacturing agreement with Oragenics Inc. EKF will supply drug substances for the customer and this will boost next year’s profit by 5%.
LiDCO (LID) has signed a distribution deal with a Chinese supplier of blood monitoring cuffs and this will help to replace the lost income from the Argon distribution contract. It may take time to build up sales, though.
Woodford Investment has increased its stake in superyacht painting and maintenance services provider GYG (GYG) to 21.5%. This comes at a time that Old Mutual has been selling down its stake after the recent profit warning.
Corporation tax software supplier Tax Systems (TAX) has grown its recurring and non-recurring revenues in the first half of 2018 and total revenues were 14% higher, which includes 9% organic growth. Net debt is down to £17.5m.
Synectics (SNX) had net cash of £9.1m at the end of May 2018. The surveillance technology company increased interim revenues by 3% to £34.7m thanks to strong demand from the gaming sector. Underlying profit improved from £1.3m to £1.5m. Stockdale has maintained its full year profit forecast at £3.1m.
EMIS (EMIS) says that its primary care business is sorting out its problems and the net cash grew to £32.3m at the end of June 2018. The health IT technology supplier says that the business has grown in the first half and still expects an improvement in full year profit. The share price has recovered since the disappointing trading statement earlier this year.
Ken Kroeger has become permanent chief executive of driver monitoring systems technology developer Seeing Machines (SEE) and he will had over the chairmanship to Jack Boyer at the beginning of 2019.
Investment company Athelney Trust (ATY) says that its NAV dipped to 264.2p a share at the end of June 2018, although this was partly due to the payment of the final dividend of 8.9p a share. Excluding that, there was a 4% decline. There was an improvement on the net return on ordinary activities from £110,000 to £125,000, but the loss in the capital part of the income statement was slightly higher than that revenue gain. The total value of investments was £5.61m and NAV was £5.7m. During the first half, shareholdings in Countrywide, Debenhams, DX, Juridica Investments, HC Slingsby and Sprue Aegis were sold.
Avation (AVAP) has acquired a second new Airbus A220-300 aircraft and leased it to airBaltic.
Flying Brands Ltd (FBDU) is raising £500,000 at 2.5p a share in order to help finance obtaining FDA clearance for StoneChecker software and design a cloud-based interface, as well as boost commercial operations. Subsidiary Imaging Biometrics is involved with a phase II trial that will use its IB Rad Tech technology to process data from 20 sites to determine how well dynamic susceptibility contrast magnetic resonance imaging in measuring the effectiveness of brain tumour treatment.
Bacanora Lithium (AIM:BCN) Cancels Proposed Placing As Discussions Continue With Additional Parties To Secure The Remaining Construction Funding Requirement.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) notes the announcement by Bacanora Lithium plc (AIM: BCN) that, due to current volatility in global commodities markets, it has elected not to proceed with its proposed placing to raise gross proceeds of US$100m.
To date, Bacanora has announced equity and debt funding commitments totalling US$240m, which represents 52% of the US$460m required for Stage 1 production of 17,500 tpa of Li2CO3 at Sonora (the “Construction Funding”). These include a US$150m senior debt facility with RK Mine Finance, one of the leading specialist mining lenders, and conditional strategic investments from the State General Reserve Fund of Oman (SGRF), the sovereign wealth fund of the Sultanate of Oman, and from Bacanora’s off-take partner, Hanwa, for a combined total of US$90m.
Bacanora will now focus on completing the Front End Engineering Design and remains in discussions with several additional parties with regards to securing the remainder of the Construction Funding, so that it can be in a position to begin construction of the Project once financing is secured.
The full release can be found at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13723309.html
SSE plc SSE The first quarter was impacted by weather conditions with hydro output higher than last year due to higher snow melt but for both years output was below expected levels, with this year, some 20% lower than expected. Output from onshore and offshore wind farms has been around 15% below expectations due to poorer than average wind conditions. Finally temperatures in the UK for the three months to the 30th June were 1.5 degrees centigrade warmer than thirty-year average, leading to a fall of about 10% in average domestic gas demand. Dry, still and warm weather, has also been accompanied by persistently high gas prices. Thus energy costs have risen, electricity output from renewable sources has fallen at the same time as demand. All of these factors have negatively impacted adjusted operating profit for the quarter by some 80m which will potentially have an impact on the full year results.
Unilever plc ULVR claims a solid all round performance in challenging market conditions for its first half with one of the highlights being a 5% drop in turnover including an adverse currency impact of 8.9%. More and more companies failing to meet expextations, seek refuge in challenging market conditions, without ever explaining what exactly the challenges were and why management was incapable of meeting them. SSE appears to be no exception treating it as one of the facts of business life for which they need not offer a meaningful explanation.
Sports Direct Intl SPD will no doubt please shareholders with the news that t has am elevation strategy which is continuing to exceed expectations. Preliminary results for the year to the 29th April show that on a reported basis, profit before tax fell by 72.5% and earnings per share by 88.3%. On an underlying basis the figures showed rises of 34.5% and 74.6%, respectively.
Babcock International Group BAB updates that it has delivered strong growth in its aviation and nuclear sectors but defence revenues have been impacted, albeit perhaps only on a temporary basis, by another government restructuring in the creation of a Submarine Delivery Agency whose main purpose in life, apart from the creation of more jobs for the boys, appears to be the creation of slowdowns and delays in activity levels. Perhaps another level of bureaucracy could be added to get levels of activity back to where they were before the new agency was created.
Apollo Minerals, focused on the development of a responsible, modern mine at the Couflens Project in France, has demonstrated its commitment to local communities through the creation of a significant cultural heritage initiative – the Club de Mécènes Mines du Salat (“CMMS”). The CMMS has been established by Apollo Minerals’ French subsidiary, Mines du Salat.
The CMMS has been established to ensure the cultural and historical heritage of the Couserans province in the Ariege region is upheld. The heritage of the province, which is known for its Roman art and architecture, attracts over 150,000 tourists a year and provides a major source of economic stimulus for the area.
The CMMS was formed as a consortium between Mines du Salat and a number of local businesses. Each founding partner will make annual contributions which will then be allocated to the various restoration projects in the Couserans province. The French government will contribute an additional 60% to the total amount of funds raised.
To date, the CMMS has provided funding for:
- the restoration of three paintings in the Vic d’Oust church;
- the renovation of the roof, electricity and paintings of the Romanesque church of Saint-Jacques d’Aubert in Moulis; and
- a study of the statues at the chapel Notre-Dame du Pouech in Oust, classified as historical monuments.
The establishment of the CMMS further strengthens the Company’s commitment to the region and reinforces its desire to work collaboratively with local stakeholders.
Every restoration project that the CMMS commits to financing has the potential to create direct and indirect jobs.
The CMMS is part of the Fondation du Patrimoine, an independent organisation created to defend and enhance national heritage in France.
Hugo Schumann, Executive Director, commented:
“We are developing the Couflens Project in a province steeped in cultural heritage. We are proud to have co-created this foundation whose sole aim is to protect, promote and enhance that heritage. Our goal is to develop a project that generates benefits for all our stakeholders and we have a duty to ensure that our social, economic and environmental impact is positive.”
For further information contact:
Hugo Schumann Robert Behets
Tel: +44 207 478 3900 Tel: +61 8 9322 6322
Brand CEO Alan Green talks Tertiary Minerals #TYM, Andalas Energy #ADL, Northern Bear #NTBR & ECR Minerals #ECR on Vox Markets podcast
Brand CEO Alan Green discusses Tertiary Minerals #TYM, Andalas Energy & Power #ADL, Northern Bear #NTBR and ECR Minerals #ECR. The interview begins after 8 minutes.
Jenny Hammond @JournalistJenny interviews Zafar Karim, Exec Chairman at Legendary Investments #LEG following the latest NAV hike and swing to profitability announced in the recent trading update.
Buy Northern Bear #NTBR says VectorVest. Opportunity for near term gains backed by bullish price action and fundamentals.
Newcastle-based Northern Bear (NTBR.L) is a provider of specialist building services. The company was floated on AIM in December 2006, and provides services ranging from general building work, fire protection, roofing works, fork lift truck sales/hire and health and safety consultancy. There are currently 11 businesses in the group which together employ over 300 people.
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On July 16th 2018, NTBR announced preliminary results for the year ended 31 March 2018. During the year the group completed the acquisition of H Peel & Sons (Holdings) Limited. Turnover from continuing operations rose to £53.6m (2017: £45.6m), with adjusted operating profit from continuing operations up to £3.1m (2017: £2.5m). Adjusted EPS rose to 12.5p from 11.3p, and the group increased the proposed final dividend to 3.0p per share (2017: 2.5p), plus a special dividend of 1.0p per share. Exec Chairman Steve Roberts said he was “delighted to be reporting on another great set of results. With a strong current order book, I am hopeful of another good year to come and would like to thank my fellow Directors and the management teams and staff at all of our companies for the efforts they put into making the Group such a success story. “ “We are pleased to be back on the acquisition trail and will continue to look at opportunities as and when they arise.”
VectorVest valuation metrics for NTBR had occasionally flickered into life in early 2018, but it was the run up to the June trading update that saw the RT (Relative Timing) metric, (a fast, smart, accurate indicator of a stock’s price trend), flag up an opportunity. Now in mid July, despite a bullish move higher in the share price, the NTBR RT metric still logs 1.27, which is rated as very good on a scale of 0.00 – 2.00. Other high scoring metrics include a GRT (Earnings Growth Rate) of 19%, which VectorVest also considers very good. The stock continues to add gains, but even at 82p, VectorVest believes the stock is still underperforming against a valuation of 108p.
A weekly chart of NTBR.L is shown above in my normal format. After a strongly trending upward move, in the first seven months of 2017, the share has traded sideways to down. Chartists refer to this type of pattern as a continuation pattern. Recently the share has broken the trendline defining the highs of the continuation pattern on rising volume. This is very bullish price action and bodes well for a push to at least the last high made on August 2017.
Summary: With over 85% of NTBR turnover coming from repeat business, its management can rightly be praised for a discerning approach to finding and bedding in quality acquisitions. Income investors will note that NTBR offers regular dividend payments, but with Exec Chairman Steve Roberts bullish over forward prospects for the group, VectorVest also sees an opportunity for near term capital gains. We rate the stock as buy, with a price target of 108p.
Dr David Paul
July 17th 2018
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