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Article from Proactive Investors United Kingdom
Mining News
Orsu Metals Corp (TSE:OSU) has released its Annual Results for the Year Ended December 31, 2011. Key during the year, although actually post year end in February, was the successful completion of the Karchiga Definitive Feasibility Study, which was made available on the company's website last night. The project aims to produce a total of 149kt copper over an 11.5 year mine life. The Company expects to receive the necessary construction permitting approvals from the Kazakh authorities by the end of 2Q'12.Cash and equivalents at year end was $10.3m and the company will need to raise finance to fund the US$115m capex for Karchiga.
Fluormin PLC (LON:FLOR) released its interims and reported a loss of £4.323m. The company is struggling with weaker acid grade fluorspar and rising costs at its Witkop mine in South Africa, which also suffered from water shortages, power outages, unplanned plant maintenance, lower than expected feed grade and higher than expected stripping ratios during the period. The company is looking at options to reduce costs and, in particular, an upgrade of ore feed into the Witkop mill through the use of ore sorting technology. Subsequent to the period end, the Company has disposed of its 20% interest in Kenya Fluorspar Company Limited in order to secure additional funding for the Company pending the outcome of on-going sorting technology trials. These trials, if effective, would lower the operational costs of the Witkop mine by increasing the ore feed head grade to the milling circuit. The economic viability of the mine will be determined by the outcome of these trials. The net loss for the six months includes an impairment charge of £8,434,000 against the non-current assets of Witkop. At the end of the period the company had cash and cash equivalent holdings of £8,197,000, trade and other receivables of £1,249,000 and inventories of £4,172,000. The company believe that the immediate and mid-term market outlook for fluorspar is negative with substantial inventory reported at Chinese ports.
Kibo Mining PLC (LON:KIBO) has released its final year results to September, 2011. The company which has three projects in Tanzania - Haneti (nickel, platinoid elements and gold), Morogoro (Gold) and Lake Victoria (Gold) closed the year with cash and equivalents of £937,084.
Rare Earth Minerals PLC (LON:REM) released its final results for the 15 months to December, 2011. The group reported a £1.3m loss due to increased legal, administrative and due diligence as it closed the year with total assets £2.123m including cash and equivalents of £243k. Assets included the company's investments in Greenland Minerals and Energy Ltd, Western Australian Properties and the Cup Lake Rare Earth Project in Canada.
Rio Tinto PLC (LON:RIO) has become a member of the new China Beijing Metals Exchange (CBMX), which will allow Rio to sell non-contracted iron ore directly into China through the electronic trading platform.
Serabi Gold PLC (LON:SRB) the gold exploration company with assets in Brazil released its Audited results to the end of December, yesterday afternoon. The company closed the year with cash and equivalents of US$1.4m, but raised an additional £2.7m in January. These additional funds will allow the company to conduct an independent Preliminary Economic Assessment (PEA) on re-establishing operations at Palito. To this end the company has appointed NCL Ingenieria y Construccion SA (NCL) of Santiago, Chile to undertake the PEA. NCL have prepared the company's previous technical reports and have also prepared 43-101 reports for other companies active on the Tapajos region. NCL's personnel visited Palito during March 2012 to undertake their field evaluation and gather the required data for their study which the company hope will be completed at the end of May 2012.
Oil & Gas News
Parkmead Group PLC (LON:PMG) - The End of the Beginning: These results mark the end of the Company's journey from investment vehicle to junior E&P. these results are not about the reserve base, which is small, or the income, which is negligible (this year), but about the fact that the with ~$13mm in the bank, and the 2012 appraisal and development programme funded, all the ingredients for near-term growth are now in place.
• Nearing completion of the workover on the PAP#1 well
o Data suggests well could be flowed continuously
• Potential for Shale play across assets (Green Point)
• Agreement with Advanced Buoy Technology
o Applying for licenses in the UK North Sea under the 27th Seaward Licensing round
o Targeting marginal / stranded gas reserves
• Executing early stage prospecting programme (County Clare, Ireland)
• Strengthened management team and Board
o Technical and financial credentials bolstered
Serica Energy PLC (LON:SQZ) - On to the next phase. Equity Funding on the agenda?: 2011 has seen Serica complete its migration away from Asia, towards the UCS and Atlantic margin, and the near-term development of Columbus will herald the start of the new phase of growth. While past costs will be refunded by BP's farm in to its Namibian acreage, we believe that the scope for dramatic improvements in free cash flow are limited (cost cutting will have an impact at the margins), its yearend cash balance of $20mm in the context of its and its indicated programme of exploration, appraisal and development, means that the likelihood of an equity financing is likely as a means to supplement debt and other contractual financing arrangements in meeting the funding gap.
• Promising 2011 fiscal performance:
o Revenue of $27.1mm
o Cash from operations $7.5mm
o Cash position of US$20 million
o No debt
• Columbus field development in 2012:
o Negotiations concluded with BG for export via Lomond platform, subject to final documentation, partner and Board approvals
o All engineering and design studies completed
o NSAI estimate 11.2mm boe gross reserves in Block 23/16f
• Wells planned for Doyle and South Otter subject to farm out
• Two further UK licences awarded at year end
• 85% Namibia's interest in central Luderitz Basin blocks (offshore)
o Large structures identified
o Secured farm-out with BP.
o BP will carry full cost of 3D seismic survey and past costs (earns 30%)
• Six new blocks awarded in Irish Rockall Basin, Serica operator
o Three large prospects mapped: Muckish, Midleton, West Midleton
o Farm-out campaigns commenced for licences in the Slyne and Rockall Basins
• Farm-out underway prior to drilling first well in Morocco
Solo Oil PLC (LON:SOLO) - 2011 results shows steady expansion: 2011 has been a good year for the Company, as it now has a portfolio which offers balance between near term and long term drilling activities spread across its operating regions (Tanzania and Canada). In addition to these areas, and in keeping with the Company's desire for a diverse portfolio of direct and indirect interests a range of assets at throughout the spectrum of the development cycle, the Company is also looking at further investment in East Africa as well as North and South America. With this approach, and the existing asset base, we believe that the Company is well placed to grow in 2012. While there is no doubting the portfolio's potential, we believe that further resources will be required for the Company to unlock and test this potential. In this news:
• Solo strategically increased its holdings in the Ruvuma PSA in Tanzania from 12.5% to 18.75% in the period and to 25% subsequently
• The Ntorya-1 well, in the Mtwara block Tanzania was spudded on 22 December 2011.
• The Ntorya-1 drill is currently on-going. The well will be flow tested as a gas discovery at 2,600 metres once suitable equipment can be mobilised.
• Solo converted its participating loan with Reef Resources Limited in Canada to a working interest in the Reef's Ontario properties, including the Ausable and Airport South fields.
• A General Conveyance and Assignment Agreement was completed in July 2011 and Solo obtained a 23.8% working interest for the conversion of its existing loan and additional payments.
• Solo also obtained the option to acquire a further 14.3% for a further payment once Reef had raised at least that level of independent third party finance.
• In December 2011 Reef completed a CDN$1.96 million financing. Subsequently, Solo is currently completing arrangements to take up the additional percentage interest and expects to complete that transaction in the 2nd quarter 2012.
• The Company also commenced evaluation of a new exploration opportunity in Argentina under a Heads of Agreement with Obtala Resources Ltd
• Post period, a new exploration well; Airport North #1 was spudded in Canada. The well should be completed in early April.
Enegi Oil PLC (LON:ENEG) - Building on opportunities: Today's results mark the close of a year of transition for Enegi, and progress can finally be made on unlocking the value within its assets. In addition to building a portfolio of opportunities which offer potential for the Company to grow from alternate revenue streams number of sources, most notably the strategic partnership with Advanced Buoy Technology, there is also the Company's more conventional development portfolio. We believe that with ~$550m in cash, an ambitious future development programme and limited revenue generation, in the near-term, there will need to be either a scaling back of the development programme, or a combination of farmouts and / or disposals, or as is more likely, a financing to accelerate the opening up of the asset base. In the news:
• Nearing completion of the workover on the PAP#1 well
o Data suggests well could be flowed continuously
• Potential for Shale play across assets (Green Point)
• Agreement with Advanced Buoy Technology
o Applying for licenses in the UK North Sea under the 27th Seaward Licensing round
o Targeting marginal / stranded gas reserves
• Executing early stage prospecting programme (County Clare, Ireland)
• Strengthened management team and Board
o Technical and financial credentials bolstered
Subsea 7 (SUBC) Subsea 7 announced today the award of a SURF contract valued at approximately $175 million from ATP Oil & Gas/Bluewater, the operator on the Cheviot Field, situated 120km East of Shetland. The Cheviot Field development will use a moored floating process facility which will import oil and gas from four satellite drill centres, allowing oil to be exported via shuttle tankers and gas to be exported to a third party host facility.
The contract scope includes the transportation and installation of the client provided flexible flowlines and risers, control umbilical's, the 4.2km 14" flexible oil export pipeline and the 48km 10" rigid gas pipeline, together with the fabrication and installation of associated subsea structures. Offshore operations are due to begin in 2014.
Article from Proactive Investors United Kingdom