Salt Lake Potash #SO4 – Admission of Placement Shares

Salt Lake Potash Limited (“Salt Lake” or “the Company”) has applied for the admission to trading on AIM of a 29,035,714 million ordinary shares in the Company (“Ordinary Shares”) issued as part of the first tranche of the placement announced 9 November 2018. Admission of these Ordinary Shares is expected to take place on 19 November 2018

Application will be made for the admission of the balance of the first tranche, being 214,286 Ordinary Shares, with admission expected to take place on or around 22 November 2018.

Total Voting Rights

For the purposes of the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules (“DTRs”), following admission of the 29,035,714 million Ordinary Shares, Salt Lake will have 204,085,310 Ordinary Shares in issue with voting rights attached. Following the subsequent admission of 214,286 Ordinary Shares, the Company will have 204,299,596 Ordinary Shares in issue with voting rights attached. Salt Lake holds no shares in treasury. These figures of 204,085,310  and 204,299,596 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the ASX Listing Rules or the DTRs.

 For further information please visit www.saltlakepotash.com.au or contact:

Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Colin Aaronson/Richard Tonthat/Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel

Salt Lake Potash #SO4 – New issue announcement, application for quotation of additional securities and agreement

Salt Lake Potash Limited (“the Company”) today released the following announcement on the Australian Securities Exchange (“ASX”), as required under the listing rules of the ASX.

The 29,035,714 million ordinary shares in the Company (“Ordinary Shares”) issued today form part of the first tranche of the placement to institutional and sophisticated investors of 31.0 million  shares at an issue price of A$0.42 per share, to raise gross proceeds of A$13.0 million, announced 9 November 2018. The balance of the first tranche, being 214,286 shares, is expected to be issued next week.

                For further information please visit www.saltlakepotash.com.au or contact:

Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Colin Aaronson/Richard Tonthat/Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0)207 383 5100

For the full Appendix 3B announcement, link here

EXCLUSIVE: Newmont Mining secures license area next to ECR Minerals’ Baileston gold project – Value The Markets

EXCLUSIVE: Newmont mining secures license area next to ECR Minerals’ Baileston gold project

 

There has been a very interesting development next to ECR Minerals’ (LSE:ECR) Bailieston license (EL5433) in Victoria, Australia. Newmont Mining Corp, one of the world’s largest gold producers has just applied for the license for a large block of land right next door. Although the license has yet to be awarded, if it is then this could prove to be a highly significant event for ECR

Excitement was already building for ECR’s 100% Bailieston gold project, given its relatively close proximity to a number of profitable, high-grade operations. The Fosterville gold mine is around 30km to the west and is currently the largest producing gold mine in Victoria. To the southwest, roughly the same distance, sits the Costerfield gold mine, which is another prolific produce.

As promising as the region Bailieston sits in already is, the recent move by Newmont could mark the start of something big for ECR. A company like Newmont typically dedicates a great deal of resources to due diligence prior to securing new licenses. A search of the Victoria State’s ‘GeoVic’ online database confirms it has indeed just applied for license EL006893, which borders Bailieston.

It seems that EL006893 has only become available within recent weeks, which suggests Newmont may have been keeping a close eye on it for some time. This might not be surprising given the resurgence of gold exploration in the region.

Traditionally Central Victoria has been an intensive gold producing area since the precious metal was first discovered there in 1850. In fact, it is only in recent years that Victoria’s gold output has been surpassed by Western Australia’s. Part of the recent revival has been driven by Kirkland Lake Gold, the owner of Fosterville, discovering more than 1.1m ounces of gold last year.

As well as the main EL5433 block shown on the map, ECR’s license also includes a smaller block (Black Cat) directly adjacent to the south of the area Newmont are showing interest in. The block used to be connected to the main section of EL5433, but due to local licensing rules explorers must drop 40% of the license after three years, and a further 40% after five years.

ECR also owns the Moormbool license (EL00628), which it secured in July 2017. The block is largely unexplored and covers approximately 59 square kilometres. This block sits south of Black Cat and the potential new license acquisition by Newmont, with the Costerfield Mine to the south-west currently producing 50,000 ounces of gold per annum. Costerfield is a below surface mine on block EL3310 consisting of narrow high-grade veins.

Then there is the Fosterville gold mine, which enjoys a very high 94% recovery rate, with a reserve grade of 23.1 g/t Au. It is estimated that approximate production costs at Fosterville are around AUD$880 per oz, compared with a current gold price of around AUD$1665 as of today. The mine is expected to produce 300,000 ounces in 2018 and is also rich in by-products such as silver.

Although GeoVic suggests Newmont’s status description for EL006893 is an “application”,  the implications of a major player swooping in to secure a large chunk of the area are clear. Regardless of whether Newmont is successful in its application, it clearly sees enough that it like to regard this specific area as worthy of future exploration work. For ECR Minerals this looks good news and the company seems to be very well placed to take advantage of a gold rush revival in the Central Victoria region.

Authors: Stuart Langelaan & Ben Turney

Cadence Minerals #KDNC – Auroch Minerals (ASX: AOU) Drilling Programme Identifies Large Sedex Zinc Potential at Arden

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the update published today by Auroch Minerals (ASX:AOU) ‘Auroch’ that it has successfully completed its maiden drilling programme at the Arden Project, in South Australia, with all ten drill-holes encountering horizons of Sedimentary Exhalative (SEDEX) zinc and/or copper mineralisation.

Highlights:

  • Maiden drill programme at Arden intercepts base-metals mineralisation in all 10 drill-holes.
  • Up to 3 horizons of SEDEX zinc mineralisation identified at the Ragless Range Prospect within the Arden Project, extending over 3km of strike and open in every direction.
  • Best intersection was from drill-hole RRDD-007:
    • 15m @ 7.52% Zn & 0.02% Pb from 57.65m, including 3.65m @ 15.47% Zn & 0.02% Pb from 62.15m.
  • Additional mineralised bands up to 24% Zn identified in drill-hole RRDD-007 by portable XRF subsequent to initial assay results – laboratory assays are pending.

Assays are pending from additional intervals of drill-core sampled subsequent to re-logging of zones surrounding mineralisation at Ragless Range. Auroch’s geology team will continue to use pXRF, surface mapping and surface sampling techniques to build the geological database, with a focus on areas where large interpreted structures meet the projected location of the mineralised SEDEX horizons. These focussed target areas will be tested with ground geophysical surveys with the intent of defining target areas for the next phase of drilling at the Arden Project in the first half of 2019.

Cadence currently owns 6.6% of the equity in Auroch Minerals, which is an exploration company targeting principally zinc, cobalt and lithium.

The full release can be found at: https://www.investi.com.au/api/announcements/aou/8d48f77d-f8b.pdf

Cadence Minerals CEO Kiran Morzaria commented:“This is a positive initial drilling result from Auroch’s Arden project. As CEO Aidan Platel says, the company has exceeded its objectives in the maiden drill programme, not only confirming previously defined SEDEX mineralisation, but (a) identifying concentrated mineralisation that potentially improves the economic grades of the metal inventory and (b) discovering another two SEDEX zinc mineralised horizons that had not previously been identified. Most importantly, this result increases the potential scale of the Arden SEDEX base-metal system, and provides further validation for our investment into Auroch Minerals.

We look forward to assay results and further news from Auroch as the project develops.”

As at the 12 October 2018 Cadence had the following key investments: 19.7% of the equity in European Metal Holdings, which, through its wholly owned Subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over Cinovec; 6.95% of the equity in Bacanora Lithium Plc and 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the 20-year mine plan of the Sonora Lithium Project in Northern Mexico; 6.6% of Auroch Minerals Ltd; 4.5% of Clancy Exploration Ltd; 12.1% of Macarthur Minerals Ltd; 4% of the San Luis lithium exploration project in Argentina; 30% free carried interest in one mining lease and six exploration license in part of the the Yangibana Rare Earth Mineral deposit and a 100% interest in and exploration license on the eastern boundary of boundaries of Greenland Minerals and Energy Limited’s licences that encompass the world-class Kvanefjeld, Sørenson, Zone 3 and Steenstrupfjeld Rare Earth Element deposits.

– Ends –

For further information:

Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
Hannam & Partners LLP (Joint Broker) +44 (0) 207 907 8500
Neil Passmore
Giles Fitzpatrick
Novum Securities Limited (Joint Broker) +44 (0) 207 399 9400
Jon Belliss

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

 

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market.

 

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achievinghigh rates of return.

 

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to keymarketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

 

Forward-LookingStatements:

Certain statements in this announcement are or may be deemed to be forward-lookingstatements. Forward-lookingstatements are identified by their use of terms and phrases such as ‘‘believe’’ ‘‘could’’ “should” ‘‘envisage’’ ‘‘estimate’’ ‘‘intend’’ ‘‘may’’ ‘‘plan’’ ‘‘will’’ or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-lookingstatements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on keypersonnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions.The Company cannot assure investors that actual results will be consistent with such forward-lookingstatements.

Ian Pollard – Royal Mail #RMG Executives Struck Dumb

Royal Mail plc RMG finds plenty to highlight in its interim results for the half year to the 23rd September. A rise of 1% in revenue is one of the best. Apart from that, underlying adjusted profit before tax was down 27 per cent and·  adjusted basic earnings per share fell by about a third from 20.1% to 13.6 pence. As if that was not bad enough the reasons for this dismal performance, were even worse. Poor productivity performance, lower cost avoidance in the UK and higher than expected cost pressures in GLS, where admittedly there was a ray of sunshine with a 9% rise in revenue. The most amazing thing about this report apart from the surpising rise of 4% in the interim dividend, is that not a single member of senior management or the board had the courage to  come out and make a single comment about the results. From the CEO to the Chairman and all the other senior executives, they all appear to have been simultaneously struck dumb.

Bovis Homes Group BVS on the other hand displays no such reticence as the CEO proclaims that the transformation of its customer service and build quality has resulted in a significant improvement in its financial performance since the 1st July. Bovis is fully sold for this year and expects full year profits will be at record levels. As with all housebuilders it has to make obeyance to the government for its generosity to the industry in agreeing to extend its completely unjustifiable Help to Buy Scheme for yet another two years until March 2023.

Young & Cos Brewery  YNGA produced another strong performance for the half year to the 1st October, with profit before tax up by 19.5% and basic earnings by share by 19.4%. The interim dividend is to be increased by 6% making it the 22nd consecutive year-on-year interim dividend increase. Summer results were exceptional – average like-for-like sales growth of 5.6% over the past seven years, with this half year producing a revenue rise of 8.8%, helped by the hottest summer on record. Drink sales enjoyed a particularly strong summer with double digit growth of just over  7.4% on a like-for-like basis. Accommodation sales rose by over 18% and EBITDA by 4.7% to record levels. The strong trading has continued in the first six weeks of the second half.

Dart Group DTG Group operating profit for the half year to the 30th September surged by 68% after a 36% revenue rise. Basic earnings per share rose by 56% and the interim dividend is to be increased by 87%. Bouyant demand led to a particularly strong season for the Leisure Travel business although increased losses are to be expected in the second half of the year as further investment is made in additional aircraft and marketing.

 Beachfront Houses &  Apartments For Sale in Greece  http://www.hiddengreece.net

IMC Exploration #IMCP commences drilling at Avoca prospect, Co. Wicklow, Ireland

IMC Exploration Group Plc announces that priority drilling has commenced a drilling programme on its highly prospective Avoca property, PL 3849 in Co. Wicklow, Ireland.  This prospecting licence lies on the Avoca mineralised belt and on its interpreted NE extension located in the core of the Caledonian para-tectonic belt of SE Ireland.

IMC Chairman Eamon O’Brien said, ‘In recent months IMC has been preparing a Mineral Resource Estimate in conjunction with Trove Metal Limited. We are delighted with progress made to date on this.  Further, the commencement of this drilling campaign on our Avoca licence area is very exciting. The anomalous zones of interest have considerable untested strike potential.’

IMC Exploration Group Plc,

Dublin, 15th November 2018

The Directors of the Company accept responsibility for this announcement.

END

Enquiries:

IMC Exploration Group Plc
Mr. Eamon O’Brien: Tel. Ireland: +353 87 6183024
Ms. Kathryn Byrne: Tel. Ireland: +353 85 2336033

Keith, Bayley, Rogers & Co. Limited
Graham Atthill-Beck: Tel: +44 20 7464 4091/+44 750 643 4107/+971 50 856 9408
E-mail: Graham.Atthill-Beck@kbrl,co.uk
Brinsley Holman: Tel: +44 207 464 4098
E-mail: Brinsley.Holman@kbrl.co.uk

Autoblog – Stung by Asian dominance, Germany pours cash into EV battery ventures.

Reporting by Michael Nienaber; additional reporting by Edward Taylor, Ilona Wissenbach, Ludwig Burger and Andrea Shalal.

BERLIN — Germany has earmarked 1 billion euros ($1.2 billion) to support a consortium looking to produce electric car battery cells and plans to fund a research facility to develop next-generation solid-state batteries, three sources told Reuters.

The measures, expected to be announced next week, are designed to reduce the dependence of German carmakers on Asian electric vehicle (EV) battery suppliers and protect German jobs at risk from the shift away from combustion engines.

Berlin’s push to shape industrial policy marks a break with its generally “hands off” approach to business decisions and is part of European efforts to forge battery alliances to counter the dominance of Chinese, Japanese and Korean firms.

Ensuring local companies are involved throughout the electric vehicle supply chain is particularly important for Germany as it has become so economically dependent on the success of its car industry.

But Germany’s car battery push could be too late. Asian market leaders are ramping up output and some experts say there’s a risk of a glut that could hinder the establishment of large-scale battery cell production by European newcomers.

For Chancellor Angela Merkel’s fractious ruling coalition, the plan is also a way to show voters ahead of three elections next year in eastern Germany that it can get its act together to help Europe’s largest economy thrive in the electric car era.

“We have a concentration of risk in the automobile sector. The industry is too dependent on the combustion engine,” Deputy Economy Minister Christian Hirte told Reuters. “The government therefore wants to help the sector in its efforts to diversify.”

Hirte said Berlin was in talks with several companies and other governments in Europe to support a battery cell factory.

“There are possibilities for example in the Lausitz region, maybe in cooperation with Poland,” said Hirte, who is the government’s coordinator for Eastern German affairs and for small- and medium-sized enterprises policy.

“One thing is clear: you cannot ignore east Germany if you are planning such mega projects. There is a lot of space and the acceptance among the population is great.”

Companies involved in talks with Economy Minister Peter Altmaier about building a factory include German battery maker VARTA Microbattery, chemical giant BASF and Ford’s German subsidiary Ford-Werke GmbH, three people familiar with the matter told Reuters.

A spokeswoman for BASF said it would attend a meeting with Altmaier next week. Varta and Ford declined to comment.

Varta specializes in batteries for hearing aids and large storage systems for solar energy. It said last month it was studying the production of large lithium batteries and was in intensive discussions with relevant market actors.

TOO LATE?

Volkswagen’s supervisory board is due to discuss its electric car and battery cell strategy at a meeting on Nov. 16. The German carmaker has said in the past that it was studying battery cell production at its plant in Salzgitter.

A source told Reuters on Thursday that the board would discuss a far-reaching alliance with South Korean battery cell maker SK Innovation.

Some analysts say Europe is already too far behind in the race with Asian firms, at least with the current technology.

Boston Consulting Group (BCG), for example, has estimated global battery cell production capacity will exceed demand by about 40 percent in 2021, exerting massive pressure on prices and making it hard for new entrants to make money.

South Korea’s LG Chem is already supplying some German carmakers with EV batteries made in Poland while Samsung SDI Co and SK Innovation are planning factories in Hungary.

The announcement by the world’s biggest EV battery maker — China’s Contemporary Amperex Technology Ltd (CATL) — that it would build its first European plant in eastern Germany and has struck a deal with German carmaker BMW has been welcomed by the government.

But Merkel told business leaders it was “extremely important” Germany also develops its own battery cell capacity to secure the country’s role in the car industry.

For years, German car bosses have been reluctant to push ahead with electric cars, instead focusing on diesel engines. But they now face a challenge to make combustion engines comply with tougher emissions rules introduced following the emissions cheating scandal that engulfed Volkswagen.

Despite BCG’s predictions of a glut, analysts at consultants McKinsey & Company and Germany’s Fraunhofer Institute say there will be room for European newcomers as demand is likely to outstrip supply when automakers ramp up EV production.

German carmakers have warned, however, that jobs could disappear — because it takes less time to build electric cars and as positions shift overseas to foreign battery makers.

Germany’s VDA auto industry association has said a ban on combustion engine-powered vehicles in 2030 would threaten 436,000 jobs at car companies and their suppliers.

“Battery cells are a key technology and an important part of the value chain. That’s why we want to locate this in Germany,” Hirte said.

EUROPEAN ALLIANCE

Recognizing the importance of a homegrown battery industry for jobs and profits, the European Commission launched its own European Battery Alliance (EBA) in 2017 but Sweden’s Northvolt is seen as the only serious contender to emerge so far.

As part of Berlin’s push, Economy Minister Altmaier is talking to German and European companies as well as neighboring countries to try to join forces. He is coordinating his efforts with Brussels to resolve any state aid and antitrust issues.

“In a few years, Europe will have a competitive battery cell sector that can survive without state aid,” Altmaier said in September after meeting the E.U.’s Vice-President for Energy Union Maros Sefcovic, who has been the driving force behind the EBA.

Altmaier is expected to announce more details of his battery cells plan during a two-day conference in Berlin starting on Nov. 12 that will be attended by Sefcovic.

The billion euros earmarked for a German battery cells consortium would help establish a first factory, probably in western Germany, two sources familiar with the plans said.

Berlin is also willing to support a second plant, possibly in the Lausitz region near the German-Polish border where two of the regional elections in 2019 will take place, they said.

An Economy Ministry spokeswoman said Altmaier was in talks with all relevant parties and no decisions had been made.

In addition, the government wants to spend up to 500 million euros to co-finance a research factory to help put German companies ahead of the curve when solid-state batteries are ready for the mass market, another source told Reuters.

Lithium-ion batteries are likely to be overtaken in a matter of years by solid-state technology that is expected to produce cheaper batteries with higher energy density.

The location of the research factory has not been decided and the government is about to start a tender process in which authorities and firms can pitch for the site, the source said.

A Science Ministry spokesman said the government was supporting efforts to develop solid state batteries by bringing together leading research institutes with the private sector.

Companies involved in the network, known as FestBatt, include Varta, BASF, Volkswagen, BMW, car parts maker Continental, conglomerate Thyssenkrupp, carbon fiber specialist SGL Carbon, Belgian materials firm Umicore, Coperion and Heraeus, the spokesman said.

For now, German carmakers are sourcing battery cells predominantly from Asian suppliers such as CATL, LG Chem and Samsung SDI although BMW has struck a partnership with Northvolt.

Underlining the uphill battle German firms face, one of the world’s biggest automotive suppliers, Bosch, has opted out of making lithium-ion cells, saying it would be too costly.

Hans-Martin Henning, an electric mobility researcher at Fraunhofer, is less pessimistic.

“If automakers boost their electric car production to 10 to 20 percent of total sales in coming years, Europe will need battery cell factories with more than 100 gigawatt hours,” he said, well above the capacity planned by Asian producers so far.

“We’ll need far more battery cells in Europe — and this must happen pretty fast indeed,” Henning said.
The expected shift to solid-state batteries could also make European suppliers less dependent on the rare earth resources largely controlled by China that are used in lithium-ion cells.

“The landscape will change dramatically in coming years,” Porsche CEO Oliver Blume told Reuters. “Europe absolutely has a chance.”

Full article here

Buy Griffin Mining #GFM says VectorVest. Recent price action, technical picture and fundamental outlook point to attractive upside opportunity.

Griffin Mining Limited (GFM.L) is a mining and investment company, incorporated in Bermuda and listed on the London AIM market. The major asset of the Company is an 88.8% interest in Hebei Hua Ao Mining Industry Company Limited, the holder of 6.0 square kilometres of mining and exploration licences and the mine and processing facilities at Caijiaying in the People’s Republic of China. The Company also holds 90% of Hebei Sino Anglo Mining Industry Company Limited, which controls 15.7 square kilometres of exploration licences immediately surrounding the Caijiaying Mine. The Company continues to aggressively explore, expand and develop the Caijiaying mine, whilst also investigating further potential acquisitions of mining projects that are capable of being brought into production and to meet historically preset, economic returns to shareholders.

Examine this trading opportunity and a host of other similar stocks. A single payment of £5.95 gives access to the VectorVest Risk Free 30-day trial. More here

On August 7th 2018, GFM published half-year results for the period to June 30th 2018. The Company reported PBT of $21.3m on revenues of $54.1m and basic EPS of 8.95 cents (2017: 8.85 cents). The period in question saw a 21% fall in the zinc price, although this only marginally impacted profitability, while higher grade gold areas resulted in record gold in concentrate production. Operations at Caijiaying were maintained with minimal disruption throughout the first half of 2018. During the period, 448,530 tonnes of ore were processed to produce 16,873 tonnes of zinc, 459 tonnes of lead, 132,689 ounces of silver and 9,492 ounces of gold. Cost of sales of $23,336,000 in the first six months of 2018 was up on that incurred in 2017 of $20,820,000. This in the main reflects additional costs incurred extracting ore from greater depth and backfilling waste material and tailings to minimise surface storage of tailings. With cash flows from operations now directed towards the development of the Zone II area at Caijiaying and in line with previous years’ practice of determining annual dividends at the time of the Company’s full year results, no interim dividend has been declared by the Board of Griffin. Chairman Mladen Ninkov said it was a“wonderful result in light of the 21% fall in the zinc price since the beginning of the year.”He added that H2 “will remain challenging if commodity prices remain subdued.  However, the recent signing of the Contract of Transfer and the progress towards the issue of the new Mining Licence over Zone II, sets the stage for an exciting 2019.”

On numerous occasions in the past, VectorVest has flagged up the GFM investment opportunity to members. A strong run earlier in the year despite the weak zinc price was followed by a retracement in the stock through the summer months, followed by the beginnings of a recovery in September. Now trading at 111p, the stock logs an excellent RV (Relative Value) rating of 1.44 (scale of 0.00-2.00), but uncertainties over China and the trading environment weighs across the RS (Relative Safety) metric, where GFM scores a fair rating of 0.92 (scale of 0.00 to 2.00). Despite this, GFM logs a very good Relative Timing (RT) (stock price trend) rating of 1.30, (again on a scale of 0.00 to 2.00) and an excellent forecasted GRT (Earnings Growth Rate) of 29.00%. VectorVest believes the stock is well worth considering at current levels against a current valuation of 159p per share.

A weekly chart of GFM.L is shown above over a period of 3 years. After an outstanding run from around 60p to 160p (which most VectorVest subscribers banked) the share has pulled back to the long-term support as defined by the inclined simple trend line of the chart. The pullback occurred in a three-wave pattern which technical analysts consider to be a correction rather than a change in the longer-term trend. From the low on 24thSeptember at support the share has been strongly accumulated and is now on a BUY recommendation on VectorVest. A break and close above 118p would confirm a rising bottom which is a very positive sign.

Summary: A long standing favourite of VectorVest (and myself), GFM provides a reasonably predictable platform, which, if the timing is correct can yield decent returns. We believe such an opportunity exists now given the recent price action, technical picture and fundamental outlook as stated by the Chairman. Investors uncomfortable with mining operations in China may want to look elsewhere, but our view remains that the stock currently offers an attractive amount of upside even with softer commodity prices and a strong US$.

Dr David Paul

November 14th 2018

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European Financial Publishing Limited T/A VectorVest UK (VectorVest) is authorised and regulated by the Financial Conduct Authority under register number 543038. You should remember that the value of investments and the income derived therefrom may fall as well as rise and you may not get back the amount that you invest. Past performance is not a reliable guide to the future. This material is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. If investors are in any doubt of the suitability of an investment given their individual circumstances, they are recommended to contact an investment manager or independent financial adviser who may be able to provide tailored advice. Opinions expressed whether in general or both on the performance of individual securities and in a wider economic context represent the views of VectorVest at the time of preparation. They are subject to change and should not be interpreted as investment advice. VectorVest and connected companies, clients, directors, employees and other associates, may have a position in any security, or related financial instrument, issued by a company or organisation mentioned on this site. European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC357322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH. Email: support@VectorVest.com

Ian Pollard – #SSE – Diverting Wrath

SSE plc SSE although interim results for the six months to the 30th September are ahead of previous expectations they are only slightly so and they are still fairly dire. Adjusted profit before tax is down by 40.9% and adjusted earnings per share by 39.9% with a reported loss per share of 22.6p. The Chairman admits that they fall well short of what the company hoped to achieve at the start of the year and that this is disappointing and regrettable. Not however so regrettable and disappointing as to prevent the company from increasing the dividend by 3.2%. No doubt that may help to divert a certain amount of wrath.

Smiths Group SMIN saw revenue fall by 1% in the 3 months to the end of October as the company was impacted by a number of factors. At Smiths Medical, revenue was impacted by the previously announced regulatory and contract challenges. In Smiths Detection, the phasing of orders impacted first quarter revenue but a robust order book is expected to see a strong second half. Management expectations for the full year remain unchanged

AB Dynamics plc ABDP has delivered another year of record revenue and adjusted profit. Revenue for the year to 31st August grew by 51%, profit before tax by 78% and basic earnings per share by 74%. The proposed final dividend is to be increased by 10%. Despite this very strong growth, order intake has continued to run ahead of sales and this has provided a healthy order book with visibility into the third quarter of 2019

Workspace Group WKP reports a strong perfomance driven by customer demand for the half year to the 30th September. Strong growth in net rental income, up 17% year on year, resulted in 20% growth in adjusted trading profit and the interim dividend is also to be increased by 20%. However despite all this talk of strong performances and dividend increases profit before tax fell by 18%

Marshall Motor Holdings MMH updates that  following better than anticipated trading during October 2018 and a more positive outlook for the remainder of the current financial year.the Board expects continuing underlying profit before tax for the year ending 31 December 2018 will be ahead of the Group’s record results reported last year.

Falanx Group Ltd FLX Interim results for the six months to the 30th September delivered a rise of 51% in Group Revenue, with an even more spectacular rise in the cyber division of 198%. Cyber attacks pose ever growing threats and provide an increasing opportunity for the company. New business is at record levels, as are tendering opportunities.

 Beachfront Houses &  Apartments For Sale in Greece  http://www.hiddengreece.net

Brand CEO Alan Green talks Europa Metals #EUZ, Andalas Energy & Power #ADL, Concurrent Technologies #CNC and Harley Davidson ($HOG) on Vox Markets podcast

https://audioboom.com/posts/7083852-emmerson-eml-and-alan-green-on-euz-adl-cnc-hog

 

Brand Communications CEO Alan Green talks about: Europa Metals #EUZ, Andalas Energy & Power #ADL, Concurrent Technologies #CNC and Harley Davidson ($HOG) with Justin Waite on the Vox Markets podcast. Interview is 7 minutes 18 seconds in.

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