IMC Exploration (IMCP) – Modern Mining in the Vale of Avoca.

AvocaVale1Excerpts from a brief history of metal mining in the Vale of Avoca, County Wicklow – by Alan Thomas and Peadar McArdle – Published by IMC Exploration (IMCP)

Modern Mining in the Vale of Avoca (1958-1982)

Mining in the Avoca Valley between 1958-1982 relied for the greater part on underground trackless mining – extracting large tonnages of lower grade ore in the West Avoca area at Ballygahan and BallymurtaghWestAvocaVisit. Open pit mining was mostly from the east side of the river at Tigroney and Cronebane. From 1958-1962 St Patrick’s Copper Mines Ltd was responsible for the introduction of the relatively new trackless method of underground mining which enabled larger tonnages to be mined and consequently lower grades could be economically extracted. This entailed driving an inclined tunnel from surface down at a gradient of 1 in 8 to gain access to the ore body. Simultaneously a steeper tunnel driven from surface to an underground crusher station was put in to house a series of four conveyor belts which took the crushed ore from the underground storage bins under the crusher station and conveyed it to the surface.

Then it went to the mill ore storage bins. Ore from these surface bins fed the newly constructed ore processing plant or mill as it is known. WestAvocaDrillingThis mill was capable of handling 4000 tonnes of ore per day. Once in the mill the ore was treated as it was in the 19th century but using modern equipment; it was further reduced in size, screened, washed and crushed to a fine powder. Each stage produced a separation of higher grade from waste material. The difference being that now none of these operations was done by hand, but by large electrically driven machines. The use of chemical reagents was also a 20th century innovation as flotation of the ore to cause the needed separation was aided by the addition of a variety of reagents, depending on the impurities which had to be separated from the copper concentrate.

To be continued….

On The Beach – Takes A Dip

The share price of On The Beach (OTB) may have got a bit ahead of itself, as shown by the morning’s fall of 15p (5%)  on news that UK revenue has only grown by 26% in the 4 months to 31st January and the company reports strong growth in both bookings and revenue.

At yesterdays closing price of 305p the shares had nearly doubled since 7th December when they stood at 166p.

OTB claims to be the UK’s leading online retailer for beach holidays. Its target is the disruption of the established operators by having a low cost base, innovative, flexible online technology and a strong customer proposition. Growth is led by the company’s investment in technology and in online and offline marketing, investment which enables it be fleet of foot and beat its more sclerotic competitors by reacting rapidly and successfully to changes in demand, such as the recent huge shift from the eastern Mediterranean and Egypt to the safer shores of the western Mediterranean.

OBT has come a long way from its start up in a terraced house in Macclesfield in 2004 to its 2015 listing on Aim.

Preliminary results for the year to the end of September showed group revenue up by 37% to £63m., adjusted underlying profit before tax up by 46.5% and EBITDA by 44.9%.

Interim results for the 6 months to the end of March are due on the 19th May.

Buy a holiday villa in Greece;   http://www.hiddengreece.net

Daily Actions – UK Main & AIM markets 05022016

IntellisysLogoDaily Actions is a daily summary analysis of changes in short term actions from our Daily Recs – AIM and Daily Recs Main markets reports. This report is typically distributed before the open of trading in London.

AIM Market

ST Rec. changed
From To
Basic Resources
Amur Minerals Corporation Buy Neutral
Financial Services
Manx Financial Buy Neutral
Fairpoint Group Neutral Buy
Urban Civic Buy Neutral
Health Care
Omega Diagnostics Group Buy Neutral
Industrial Good & Services
Accsys Technologies Neutral Buy
Gooch & Housego Sell Neutral
Restore Sell Neutral
21st Century Technology Sell Neutral
FW Thorpe Sell Neutral
Oil & Gas – Explorers
Rockhopper Exploration Buy Neutral
Oil & Gas – Producers
Sound Energy Neutral Buy
Retail
CVS Group Sell Neutral
Technology
Concurrent Technologies Sell Neutral
IQE Buy Neutral
Travel & Leisure
GVC Holdings Sell Neutral

Main Market

ST Rec. changed
From To
Aerospace & Defence
Smiths Group Buy Neutral
Automobiles & Parts
Pendragon Neutral Buy
Banks
Barclays Buy Neutral
HSBC Buy Neutral
Lloyds Banking Group Buy Neutral
Standard Chartered Buy Neutral
Electronics & Electrical Equipment
Spectris Buy Neutral
Engineering & Machinery
Fenner Buy Neutral
Hill & Smith Sell Neutral
IMI Buy Neutral
Morgan Advanced Material Buy Neutral
Weir Group Buy Neutral
General Retail
Burberry Group Buy Neutral
Information Technology & Hardware
Filtronic Sell Neutral
Leisure & Hotels
Millennium & Copthorn Hotels Neutral Buy
Media & Entertainment
Pearson Buy Neutral
St. Ives Sell Neutral
Personal Care & Household Products
PZ Cussons Neutral Buy
Reckitt Benckiser Group Sell Neutral
Real Estate – REIS
CLS Holdings Neutral Buy
Software & Computer Services
SAGE Group Sell Neutral
Speciality & Other Finance
Aberdeen Asset Management Buy Neutral
Support Services
Aggreko Buy Neutral
AMEC Foster Wheeler Buy Neutral
Bunzl Sell Neutral
Berendsen Sell Neutral
Michael Page International Buy Neutral
PayPoint Buy Neutral
Premier Farnell Buy Neutral
Utilities
Severn Trent Sell Neutral

 

 

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Intellisys Intelligent Analysis Limited (‘Intellisys’) does not make personal recommendations. The information in this publication is provided solely to enable you to make your own investment decisions. If you are unsure about dealing in shares and other equity investments, you must contact your financial adviser as these types of investments may not be suitable for everyone. The value of stocks and shares, and the income from them, can fall as well as rise and you may not get back the full amount you originally invested. If denominated in a foreign currency, fluctuations in the exchange rate will also affect the value of stocks and shares and the income from them. Past performance is not necessarily a guide to future performance. You agree to abide fully with Intellisys’ Term & Conditions, which are available to www.intellisys.uk.com

 

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DISCLAIMER: Intellisys Intelligent Analysis Limited has prepared this report. Intellisys (“Intellisys”) is the trading name of Intellisys Intelligent Analysis Limited. Intellisys Intelligent Analysis Limited is a provider of financial research reports that indicate the possible value of quoted company shares. The information contained within any and all of Intellisys’ reports are designed to present an objective assessment of the possible value or relative value of a company and/or an actuarial sector or stock market index. Intellisys utilises as extensive as possible range of valuation tools and proprietary systems to derive its outputs. The base data for the models are derived from sources believed to be accurate but Intellisys Intelligent Analysis Limited does not warrant or guarantee the accuracy or reliability of the source data or its models and proprietary systems. Subscribers, and casual readers, should not rely upon the Intellisys’ research outputs when forming specific investment decisions but should seek advice specific to their situation and investment requirements from a person authorised under the Financial Services and Markets Act 2000, before entering into any investment agreement.Intellisys Intelligent Analysis Limited has used reasonable care and skill in compiling the content of this report. No representation or warranty, expressed or implied, is given by any person as to the accuracy or completeness or accuracy of the information and no responsibility or liability is accepted to the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. In no event will Intellisys Intelligent Analysis Limited, Intellisys or any of its officers, employees or agents be liable to any other party for any direct, indirect, special or other consequential damages arising from the use of this report.The Intellisys Intelligent Analysis Limited and/or Intellisys reports are not directed to any person in any jurisdiction where (by reason of that person’s nationality, residence or otherwise) the publication or availability of the Intellisys Intelligent Analysis Limited and/or Intellisys information may be prohibited. Persons in respect of whom such prohibitions apply must not access the Intellisys Intelligent Analysis Limited and/or Intellisys reports. Neither this document, nor any copy in whatever form of media, may be taken or transmitted into the United States, Canada, Australia, Ireland, South Africa or Japan or into any jurisdiction where it would be unlawful to do so. Any failure to comply with this restriction may constitute a violation of relevant local securities laws. Recipients of Intellisys Intelligent Analysis Limited and/or Intellisys reports outside the UK are not covered by the rules and regulations made for the protection of investors in the UK.

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Intellisys Intelligent Analysis Limited (including its Directors, employees and representatives) or a connected person may have positions in or options or other financial instruments on any of the securities mentioned within a report, and may buy, sell or offer to purchase or sell such securities from time to time, subject to restrictions imposed by internal rules.

Subscribers, and casual reader, are reminded that the value of any financial instrument may go up or down and that past performance is not necessarily a guide to future performance.

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Critical Raw Material Alliance welcomes call to create an expert network – Tertiary Minerals

CRM-LOGO2The CRM Alliance welcomes the European Commission’s call to create an expert network on critical raw materials. Given the supply risk and economic importance of critical raw materials for the European Union, it is vital that policy-makers from the EU and the member states make better informed decisions regarding the supply of CRMs, as well as work towards developing European standards to optimise the recovery of these materials. An expert network on CRMs will significantly help reduce the current knowledge gaps to foster the supply of EU sources, raise awareness of the importance of CRMs for society, and develop solutions to the various challenges relating to their supply. According to the Commission, this proposed action should develop an expert network or structure of networks covering all CRMs and where possible, include stakeholders to cover as much of the value chains as possible.

The CRM Alliance has been created by industry to advocate the importance of those critical raw materials (CRMs) in Europe and to promote our common interests. The Alliance represents the interests of primary producers, traders and associations. The CRM Alliance supports the creation of a strong critical raw materials policy which will benefit the economic and national security interests of the EU and its leadership in innovation, manufacturing and technology-dependent services which is inextricably linked to reliable access to, and the use of, critical raw materials. Given the high socio-economic importance of those critical materials and using alternative substances while maintaining the same level of performance is often not a viable option. CRM and other policies should thus not be directed in any way towards substitution of those CRMs. Instead, CRM policies should rather look for enhanced raw material supply, allocate more funds to R&D since critical materials are highly important for resource efficiency, strive to have other EU policies such as REACH give special consideration for critical materials; andfinally, trade policies that reflect both free and fair trade.

The CRM Alliance is currently an observer in important European Commission – DG GROW stakeholder groups such as the Raw Materials Supply Group which is comprised of industry representatives, environmental NGOs, trade unions, Member States and the Commission. The CRM Alliance also holds the observer status in the Ad-Hoc Working Group on Defining CRMs which is an expert group tasked to identify the list of critical raw materials. This means that when a particular substance is being discussed by this Working Group, our members representing that substance are allowed to take part in the meeting and provide its members with the most up-to-date information on their substance. The CRM Alliance is supported by a Secretariat located at the core of European decision-making in Brussels. It is operated by Ridens Public Affairs, a business consultancy practice that assists organizations in dealing with regulatory and advocacy issues related to the raw materials sector, provides membership services, raises visibility of the associations and brings additional value to its members.

In 2010, the European Commission identified 14 raw materials critical because they are “economically and strategically important and are subject to a higher risk of supply interruption in the next 10 years”. This list should help incentivize EU production of CRMs, facilitate the launching of new mining and recycling opportunities and support negotiating trade agreements. In 2014, the European Commission analysed 54 substances – including non-energy, non-agricultural materials – and identified 6 more materials as critical, seperated heavy from light rare earth metals and decided to remove tantalum from the list. These 20 materials are antimony, beryllium, chromium, coking coal, fluorspar, TYM1gallium, germanium, magnesium, niobium, platinum group metals, heavy rare earth metals, light rare earth metals, silicon metal and tungsten. Since the list is being reviewed every three years, the European Commission is currently refining the methodology used to identify these materials. By early next year – 2016 – the current list of 20 materials will be reviewed and updated which is expected to be finished by late spring 2017. Given the current global state of play in the metals field, the CRM Alliance is expecting the CRM list to also grow with the next review.

The CRM Alliance currently consists of 19 members representing 15 Critical Raw Materials and more than 350 companies globally: Beryllium Science & Technology Association; Etimine (borates); The Cobalt Development Institute; World Coal Association (coking coal); Eurofluor (fluorspar); Tertiary Minerals (Fluorspar); German Engineering Federation (gallium arsenide); EcoPhos (graphite rock); Indium Corporation; International Magnesium Association; Minor Metals Trade Association; Imerys Graphite and Carbon (natural graphite); Beta Technology (niobium); International Precious Metals Institute (PGMs); Great Western Minerals Group (REEs); Tasman Metals (REEs); EuroAlliages (silicon metal); and Commerce Resources Corporation (REEs and former CRM tantalum).

Link here to view the full CRM Alliance paper Fact-Sheets-CRM-Alliance-September-2015

 

Diamonds – Starting To Sparkle Again ?

Gem Diamonds (GEMD) has risen by 20% since the 20th December, clawing back some of the falls suffered since last years peak of 165p in June. The rise comes despite the continuing weakness in the diamond market and is partly due to the Letseng mine, the jewel in GEMD’S crown and which specialises in producing high grade diamonds.

Decembers low for the shares was 98p and the recovery has taken the price up to today’s 117p.

Letseng is 70% owned by GEMD  and 2015 production came in above guidance. 9 diamonds  valued at more than $1m each were mined during the year, together with a further 3 stones of more than 100 carats each. The high quality of Letseng diamonds meant that the company enjoyed what it claims to have been a robust quarter 4, despite a further drop in average prices.

Overall the number of Letseng carats sold in 2015 was down by 6% but their value was down by a much higher 15%.

The damage done by the weakness of the diamond market  is well illustrated by the fact that in the first half of the year the average price per carat for Letseng was $2264 but by quarter 4 this had fallen to $2117, despite a surge in the third quarter to $2578

GEMD is also making slightly optimistic noises about prospects for 2016.

It is interesting to note that Petra Diamonds PDL which we commented on in January has also made a recovery of about 20% despite 2015 revenue being down by 28%.

From a low of 69p on the 26th January Petra’s shares rose to 88p before falling back again to today’s 82p

Maybe those diamonds will continue to be the naughty girl’s best friend.

Find a holiday villa in Greece; visit  http://www.hiddengreece.net

 

 

 

Advanced Oncotherapy – Change of name of NOMAD & Joint Broker

AVO1Change of name of Nominated Adviser and Joint Broker

 

The Company notifies that its Nominated Adviser and Joint Broker has changed its registered name from Westhouse Securities Limited to Stockdale Securities Limited.

Advanced Oncotherapy Plc

www.avoplc.com

Sanjeev Pandya, CEO

Tel: +44 20 3617 8728

Nicolas Serandour, CFO

Stockdale Securities (Nomad & Joint Broker)

Antonio Bossi / David Coaten

Tel: +44 20 7601 6100

Beaufort Securities (Joint Broker)

Jon Levinson / Elliot Hance

Tel: +44 20 7382 8300

Walbrook PR (Financial PR & IR)

Tel: +44 20 7933 8780 or avo@walbrookpr.com

Paul McManus / Anna Dunphy

Mob: +44 7980 541 893 / Mob: +44 7876 741 001

About Advanced Oncotherapy Plc www.avoplc.com

Advanced Oncotherapy is a provider of particle therapy with protons that harnesses the best in modern technology. As a result, Advanced Oncotherapy will offer healthcare providers affordable systems that will enable them to treat cancer with an innovative technology as well as better health outcomes and lower treatment related side effects.

Advanced Oncotherapy’s team “ADAM” based in Geneva focuses on the development of a proprietary proton accelerator called Linac Image Guided Hadron Technology (LIGHT). LIGHT accelerates protons to the energy levels achieved in legacy machines but in a unit that is a fraction of the size and significantly lower in cost. This compact configuration delivers proton beams in a way that facilitates a greater precision and electronic control which is not achievable with older technologies.

The Company has signed two purchase agreements with Sinophi Healthcare Limited for the LIGHT proton therapy systems to be installed in hospitals in China. There are also four additional framework agreements and further Letters of Intent from other healthcare providers.

The Company has also signed a joint venture agreement with CircleHealth, owned by AIM-listed Circle Holdings plc to operate the Company’s proton beam cancer therapy centre in Harley Street.

Advanced Oncotherapy continually monitors the market for any emerging improvements in delivering proton therapy and actively seeks working relationships with providers of these innovative technologies. Through these relationships, the Company will remain the prime provider of an innovative and cost-effective system for particle therapy with protons.

Daily Actions – UK Main & AIM markets 04022016

IntellisysLogoDaily Actions is a daily summary analysis of changes in short term actions from our Daily Recs – AIM and Daily Recs Main markets reports. This report is typically distributed before the open of trading in London.

AIM Market

ST Rec. changed
From To
Basic Resources
Amur Minerals Corporation Neutral Buy
Financial Services
Tengri Resources Neutral Buy
Manx Financial Neutral Buy
Impax Asset Management Group Neutral Buy
Urban Civic Neutral Buy
Food & Beverage
Purecircle Neutral Buy
Health Care
Abcam Sell Neutral
Omega Diagnostics Group Neutral Buy
Industrial Good & Services
Accsys Technologies Buy Neutral
Christie Group Sell Neutral
Gooch & Housego Neutral Sell
Hargreaves Services Neutral Buy
Nakama Group Neutral Buy
The Kellan Group Buy Neutral
Surface Transforms Buy Neutral
FW Thorpe Neutral Sell
Media
Mirada Buy Neutral
Oil & Gas – Explorers
Rockhopper Exploration Neutral Buy
Oil & Gas – Producers
Plexus Holdings Neutral Buy
Technology
Concurrent Technologies Neutral Sell
IQE Neutral Buy
Utilities
OPG Power Ventures Neutral Buy

 

 


 

Main Market

ST Rec. changed
From To
Aerospace & Defence
Meggitt Neutral Buy
Smiths Group Neutral Buy
Banks
Barclays Neutral Buy
House Construction
Persimmon Sell Neutral
Electronics & Electrical Equipment
Spectris Neutral Buy
Food Producers & Processors
Cranswick Sell Neutral
Dairy Crest Sell Neutral
Unilever (UK) Sell Neutral
General Retail
Burberry Group Neutral Buy
JD Sports Fashion Sell Neutral
Insurance
Admiral Group Sell Neutral
Media & Entertainment
Informa Sell Neutral
Pearson Neutral Buy
Pharmaceuticals & Biotechnology
AstraZeneca Sell Neutral
Oxford Biomedica Neutral Buy
Software & Computer Services
Aveva Group Neutral Buy
Speciality & Other Finance
Aberdeen Asset Management Neutral Buy
Support Services
AMEC Foster Wheeler Neutral Buy
Compass Group Sell Neutral
PayPoint Neutral Buy
Premier Farnell Neutral Buy
Telecommunication Services
BT Group Sell Neutral
Utilities
National Grid Sell Neutral
United Utilities Group Sell Neutral

RISK WARNING

Intellisys Intelligent Analysis Limited (‘Intellisys’) does not make personal recommendations. The information in this publication is provided solely to enable you to make your own investment decisions. If you are unsure about dealing in shares and other equity investments, you must contact your financial adviser as these types of investments may not be suitable for everyone. The value of stocks and shares, and the income from them, can fall as well as rise and you may not get back the full amount you originally invested. If denominated in a foreign currency, fluctuations in the exchange rate will also affect the value of stocks and shares and the income from them. Past performance is not necessarily a guide to future performance. You agree to abide fully with Intellisys’ Term & Conditions, which are available to www.intellisys.uk.com

 

The full reports are available from Intellisys Intelligent Analysis website (www.intellisys.uk.com) by clicking on the ‘Research’ tab.

DISCLAIMER: Intellisys Intelligent Analysis Limited has prepared this report. Intellisys (“Intellisys”) is the trading name of Intellisys Intelligent Analysis Limited. Intellisys Intelligent Analysis Limited is a provider of financial research reports that indicate the possible value of quoted company shares. The information contained within any and all of Intellisys’ reports are designed to present an objective assessment of the possible value or relative value of a company and/or an actuarial sector or stock market index. Intellisys utilises as extensive as possible range of valuation tools and proprietary systems to derive its outputs. The base data for the models are derived from sources believed to be accurate but Intellisys Intelligent Analysis Limited does not warrant or guarantee the accuracy or reliability of the source data or its models and proprietary systems. Subscribers, and casual readers, should not rely upon the Intellisys’ research outputs when forming specific investment decisions but should seek advice specific to their situation and investment requirements from a person authorised under the Financial Services and Markets Act 2000, before entering into any investment agreement.Intellisys Intelligent Analysis Limited has used reasonable care and skill in compiling the content of this report. No representation or warranty, expressed or implied, is given by any person as to the accuracy or completeness or accuracy of the information and no responsibility or liability is accepted to the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. In no event will Intellisys Intelligent Analysis Limited, Intellisys or any of its officers, employees or agents be liable to any other party for any direct, indirect, special or other consequential damages arising from the use of this report.

The Intellisys Intelligent Analysis Limited and/or Intellisys reports are not directed to any person in any jurisdiction where (by reason of that person’s nationality, residence or otherwise) the publication or availability of the Intellisys Intelligent Analysis Limited and/or Intellisys information may be prohibited. Persons in respect of whom such prohibitions apply must not access the Intellisys Intelligent Analysis Limited and/or Intellisys reports. Neither this document, nor any copy in whatever form of media, may be taken or transmitted into the United States, Canada, Australia, Ireland, South Africa or Japan or into any jurisdiction where it would be unlawful to do so. Any failure to comply with this restriction may constitute a violation of relevant local securities laws. Recipients of Intellisys Intelligent Analysis Limited and/or Intellisys reports outside the UK are not covered by the rules and regulations made for the protection of investors in the UK.

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No Intellisys report constitutes an offer or invitation to trade, sell, purchase or acquire any shares or other financial instruments in any company or any interest therein, nor shall it form the basis of any contract entered into for the sale of shares or any other financial instrument in any company.

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Intellisys Intelligent Analysis Limited (including its Directors, employees and representatives) or a connected person may have positions in or options or other financial instruments on any of the securities mentioned within a report, and may buy, sell or offer to purchase or sell such securities from time to time, subject to restrictions imposed by internal rules.

Subscribers, and casual reader, are reminded that the value of any financial instrument may go up or down and that past performance is not necessarily a guide to future performance.

Intellisys Intelligent Analysis Limited is not registered with or regulated by any financial regulatory authority and does not offer, provide or purport to provide or offer investment advice. Intellisys Intelligent Analysis Limited can be contacted at Woodfield Cottage, The Street, Mortimer, Berkshire, United Kingdom RG7 3DW.

 

Alan Green discusses AVO, ADL and FDBK on the VOX Markets podcast

AGTipTVAlan Green discusses Advanced Oncotherapy (AVO), Andalas Energy & Power (ADL) and Feedback (FDBK) with Justin Waite on the VOX Markets podcast. The interview is 20 minutes 20 seconds in. Click here to listen.

Andalas Energy and Power (ADL) signs heads of agreement to farm-in to Indonesian gas project

Andalas Energy and Power (ADL) is pleased to announce that it has signed a non-binding heads of agreement to farm-in to the Technical Assistance Contract (‘TAC’) covering the Tuba Obi East oil and gas concession (‘TOE’) in Jambi province, Sumatra.

The proposed transaction would constitute a reverse takeover within the meaning of the AIM Rules for Companies.

Highlights:

  • Heads of agreement signed to acquire 30% working interest in TOE TAC via a farm-in
  • TOE is a ‘beach head’ for Andalas into the Indonesian gas sector
  • Any future gas production from the concession may support either:
    • Gas export with the project located close to a major export route; or
    • Gas-to-power being located in an area where a significant shortfall in energy generation exists
  • Farm-in via execution of a US$1.075 million work programme.  Bonus payment of US$500k on renewal of the concession
  • Work programme to be jointly operated by Andalas and includes technical studies and the drilling and testing of one appraisal well which would be put into production on success
  • Subject to well results, further development studies will be undertaken
  • Andalas’ gas and power study shows strong market for gas at high prices
  • Transaction is a reverse takeover and the Company is preparing an admission document seeking shareholder approval which it will publish in due course

Andalas CEO, Mr David Whitby, said, “A farm in to the TOE concession in Indonesia will give us a ‘beach head’ to build a significant gas business in the country.  This is the result of many months’ work during 2015 by our team and our extensive network of Indonesian gas and power industry experts.  That work culminated in a comprehensive study of the Indonesian gas and power sector, from reservoir sand-face to gas burner tip, which I believe gives us a significant competitive advantage in realising the value of TOE and future blocks currently under evaluation.

“TOE is ideally located adjacent to the major Sumatran gas pipeline to Duri and Singapore, and close to the provincial capital city of Jambi which is in critical need of power generation.  We see great potential to add further value by expanding the concession to capture additional gas discoveries just outside the acreage. In addition to providing Andalas with a clearly defined road map, today’s agreement also marks the beginning of the process for our shares to be readmitted to trading on AIM and I look forward to providing further updates on our progress.

“ADL has assembled a top tier Indonesian drilling team that has commenced the well planning process to fast-track the spudding of our first well which will be a target following our readmission to AIM”

Tuba Obi East Gas

Tuba Obi East has tested gas in the key South Sumatra hydrocarbon bearing formations, namely, the Air Benakat Formation (ABF) and the Talang Akar Formation (TAF).  These zones have flowed gas to surface within and around the concession.

Crucially, the ABF has flowed gas outside the TAC but only limited data from the ABF has been gathered within the concession area.  Andalas’ technical analysis indicates that this reservoir zone contains potentially substantial gas resources that can be proven via the drilling and flow testing of the proposed appraisal well which may be completed as a production well on success.

Further geological, geophysical, reservoir and development studies will be undertaken following the analysis of test results from the well.  This work will be conducted in parallel with a proactive approach to the renewal and extension of the block contract and preliminary discussions with targeted consumers.

Gas and Power Study Demonstrates Significant Opportunities in Sumatra

During the last quarter of 2015 the Andalas team, supplemented by a number of Indonesian gas and power industry experts, completed a detailed study of the Indonesian gas and power sector with particular focus on the opportunities present in Sumatra.  The results of the study are now being utilised as the ‘road map’ to guide the Company’s future asset acquisition efforts.

The major conclusions of the study were:

  • Indonesia is a demographically young nation with a rapidly growing middle-class supporting burgeoning demand for power
  • Indonesia has one of the lowest electrification rates in the ASEAN region, with more than 60 million people estimated to be without access to electricity*
  • The Indonesian gas and power markets have robust, increasing demand, that is yet to be fully met
  • Gas and power prices are some of the highest in the world and insulated from volatile oil prices
  • Market fundamentals mean pricing is expected to remain high
  • Demand growth and the international push for reduced carbon emissions favours growing use of gas in the power sector
  • There is ready access to pipeline and power infrastructure, especially Sumatra
  • TOE has potential for gas export or Independent Power Production (IPP) – subject to proving gas volumes, deliverability, and quality

The study indicates that this concession and others currently under consideration are well situated to take advantage of the strong growth in the Indonesian gas and power sectors.

Farm-in Summary

Under the terms of the proposed farm in, Andalas will acquire a 30% direct working interest in the concession through the execution of a single well work programme.  The work programme includes the completion of a geological, geophysical and reservoir study along with the drilling and flow testing of a single appraisal well to assess the deliverability, recoverable volumes, and gas quality in the Air Benakat formation.  Block operator PT Akar Golindo and Andalas will jointly operate during the work programme, which is expected to cost around US$1.075 million.  Andalas has agreed to pay a further sum of US$500,000 to PT Akar Golindo if the concession is renewed.

Reverse Takeover

The proposed farm-in constitutes a reverse takeover pursuant to Rule 14 of the AIM Rules for Companies and, accordingly, the farm-in agreement will be subject to the approval of Andalas’ shareholders in general meeting.  Andalas will publish an admission document in due course and it has engaged Gaffney, Cline & Associates to prepare a Competent Person’s Report.

Further details of the TOE contract are as follows:

Location:                                 Jambi Province, South Sumatra
approx. 30km NW Jambi City

approx. 18km NE of Grissick-Singapore/Duri gas pipeline

Contract type:                        Technical Assistance Contract (TAC) with Pertamina

Contract issue date:              1997

Term/expiry:                          20 years; expires 14 May 2017

Area:                                      55 sq. km

Working interests:                 PT Akar Golindo (100%)

Current status:                       In good standing; producing oil on an intermittent basis

Hydrocarbon basin:               South Sumatran Basin

Producing reservoirs:            Oligocene Talang Akar Fm (TAF); Air Benakat Formation (ABF)

Reservoir depth:                    TAF approx. 1,600 to 2,110 metres; ABF approx. 800 metres

Structure:                               Closure approx. 20 sq. km; thickness up to 550 metres (gross)

Seismic coverage:                  2D and 3D seismic

Discoveries:                            1986 – Tuba Obi East field

Prospects and leads:             Berembang prospect; 2 unnamed exploration leads

Wells:                                      3 wells; 2 production; 1 suspended

Productivity:                          Wells tested up to 350 bopd oil and up to 3 MMscf/d gas

Quality:                                   Oil 36°to 55°API light, sweet crude oil
Gas near pipeline quality (approx. 7% CO2)

Nearby discoveries:              Simpang Tuan (oil and gas), Karang Makmur (oil and gas)

For further information, please contact:

David Whitby Andalas Energy and Power Plc Tel: +62 21 2783 2316
Sarah Wharry
Craig Francis
Cantor Fitzgerald Europe
(Nominated Adviser and Joint Broker)
Tel: +44 (0) 20 7894 7000
Lucy Williams
Charles Goodfellow
Peterhouse Corporate Finance
Limited (Joint Broker)
Tel: +44 (0) 20 7469 0930
Colin Rowbury Cornhill Capital (Joint Broker) Tel: +44 (0) 20 7710 9610
Frank Buhagiar
Susie Geliher

 

St Brides Partners Limited Tel: +44 (0) 20 7236 1177

 

IMC Exploration (IMCP) – Avoca, Our Mining Heritage

AvocaVale1Excerpts from a brief history of metal mining in the Vale of Avoca, County Wicklow – by Alan Thomas and Peadar McArdle.

The Vale of Avoca is a beautiful part of County Wicklow, deservedly know as the “Garden of Ireland”. It features on the earliest known map of Ireland by the geographer Ptolemy who is said to have visited the area in 150AD. The mineral wealth of the valley has been known for centuries and prominent people have been involved in its exploration. Among the most celebrated, (although not the most successful), was the 19th century nationalist leader Charles Stuart Parnell, who was said to be obsessed by exploration progress.

An eminent geologist Sir William Smyth visiting the area in 1853 wrote of his impressions.

“There is perhaps no tract in these islands which exhibits, even to the uninitiated, an appearance so strongly stamped with the characteristics of the presence of metallic minerals. For a considerable distance on both sides of the deeply cut valley of the Avoca the face of nature appears changed and instead of the grassy or wooded slopes, or the grey rocks which beautify the rest if its course, we see a broken surface of chasms. ridges and hillocks, glowing with tints of bright red and brown, or assuming shades of yellow or livid green, which the boldest artist would scarcely dare to transfer to his canvas.”

“Here and there from among the ruins peers the white stack and house of a steam engine; or water wheels stand boldly projected against the hillside, some still neglected, WestAvocaBallymurtaghothers whirling around in full activity; long iron pump rods ascend the acclivities to do their work at distinct shafts, and as long as the daylight lasts, the rattle of chains for raising the ore, and the clink of the separating hammers attest the vigour of the operations. In truth quite independently of the geological or mining interest of the place, a walk through this series of mines, especially on a sunny evening, will yield a harvest of novel and striking scenes, the effect partly of the features of the mineral ground and partly the fine distant prospects which the higher workings command.”

Today the beauty of the valley has reached a much wider audience, due in no small way to the success of the BBC TV series ‘Ballykissangel’ which was filmed on location in Avoca.

To be continued….

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