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Power Metals Resources PLC, Red Rock Resources PLC, Jubilee Metals Group PLC, Condor Gold PLC, Caledonia Mining Corporation PLC …

It was a busy time for Power Metals Resources PLC () this week, with a number of corporate releases.

On Tuesday, the company revealed that drilling has started at the Silver Peak silver project in Canada, at a lower cost than initially planned after changes were made due to bad weather initially.

Portable drill equipment is being used for 120m of drilling at the British Columbia project, compared to the proposed 500m of diamond core drilling that had been announced last month. This will result in a significant reduction in programme cost, the company said.

Then on Wednesday, Power Metal provided an update on drilling progress by Kalahari Key, a company in which it has an 18.26% interest. Kalahari Key is currently drilling the Molopo Farms project, and has reached depth of 445 metres, where it is now approaching the target zone.

Power Metals has elected to earn-in to a direct 40% interest in Molopo Farms by spending US$500,000 on exploration in 2020.

Meanwhile, back on Tuesday, Power Metal and () on Tuesday said that Red Rock Australasia Pty Ltd, a company jointly owned by the two firms, has been notified that a further seven of its license applications have been accepted and have been given highest ranking, following the notification in respect of the first three applications received in early July.

Red Rock Australasia will now advertise the seven applications in newspapers with statewide and local circulation, and after a three-week exposure period, the Department of Jobs, Precincts and Regions of the State of Victoria will begin the application assessment process.

There were a plethora of financial results published from the junior miners this week.

PLC () on Tuesday reported a 132% rise in total revenue for the twelve months ended June 30, 2020, up to £54.8mln from £23.6mln.

The group’s underlying earnings (adjusted EBITDA) also increased sharply, it noted, rising by 132% to £22.6mln whilst earnings per share was marked at 0.94p, up 96%. Cash flow from operating activity was described as strong, reported at £19.4mln versus £4.76mln in 2019.

“This reporting period again showcases the strength and resilience of Jubilee’s business strategy with sustained, strong growth in all aspects of the company despite the unprecedented challenges faced as a result of the COVID-19 pandemic,” chief executive Leon Coetzer said in the results statement.

() third-quarter results highlighted a strong cash position as the company continues to advance the La India project, in Nicaragua.

The company told investors it had £5.5mln at the end of September. Operationally, the company said it has seen significant progress de-risking La India and has secured important land acquisition in the vicinity of the project.

() saw its quarterly results confirm a continuing strong performance for the Blanket gold mine in South Africa.

Some 15,155 ounces of gold were produced in the quarter, taking the nine-month tally to 42,887 ounces – which compares to 13,646 and 38,306 ounces in the corresponding periods in 2019.

() () said it remains well-funded to advance its Araguaia ferronickel mine in Brazil towards being construction-ready and highlighted a strong cash position of £13.6mln.

In its results for the three months to September 30, 2020, the nickel developer also said that the project financing process is continuing to progress with a number of key milestones delivered. These included a syndicate of five international financial institutions being mandated for a US$325mln senior debt facility to part-fund the development of Araguaia.

And recently-listed Wheaton Precious Metals () () generated just over US$228mln in operating cash flow in the third quarter to September 30, 2020, an increase of 60% relative to the corresponding quarter in 2019.

During the period, Wheaton’s net debt was reduced by US$231mln, resulting in an overall net debt position of $278mln. Attributable gold equivalent production was 171,370 ounces in the quarter with the slight reduction relative primarily due to the mining of lower-grade material at Salobo.

On the production front, AfriTin Mining Limited () reported higher production of tin concentrate from its Uis mine in Namibia as a phase one, stage one ramp-up continues at the project.

In an operational update for October, the AIM-listed firm reported that production of tin concentrate had increased to 48.2 tonnes containing around 32.2 tonnes on tin metal, a 24% month-on-month increase.

On the drilling front, on Monday () revealed that its joint venture partner IAMGOLD Corporation will shortly restart its 10,000-metre (m) air core (AC) drilling programme at the Senala project in Senegal.

Prior to the seasonal rains, IAMGOLD had already completed 1,300m AC drilling at the northernmost Faré prospect and will resume its programme there later this month. Initial results from the programme are anticipated in the first quarter of 2021.

On the same day, () told investors it has completed the planned drill hole at its Clayton silver-gold Project in Nevada, United States. The hole passed through the target zone before being terminated at a depth of 104.7 metres.

It was designed to twin and deepen a historic drill hole CL-15, which measures 7.6 metres with a silver grade of 165 grams per tonne (g/t) and 0.4 g/t gold, and drill core samples have been sent for assay and analysis.

And () (OTC:SMCDY) announced the results of a review of the Leigh Creek copper mine project, and a report in relation to the anticipated capital and operating costs associated with planned production at the Lynda/Lorna Doone deposits.

The project funding requirement to get production up and running at Paltridge North has now been reduced to US$2.2mln as a result of the adoption of an alternate mine schedule for processing and use of external contractors to undertake mining.

Galantas Gold Corporation ()() said this week it has increased gold concentrate processing at the Galantas Gold Mine in Omagh, Northern Ireland. Three shift processing commenced on October 26, 2020. The addition of a third shift has increased milling from 84 hours to 120 hours per week.

Additional training and labour re-organisation has enabled the change to be made, without additional hiring, by redeployment within the business.

() said this week it had received the results of the laboratory analysis for approximately 370 soil samples covering the eastern portion of the new licence which surrounds the company’s Elizabeth Hill silver project.

The soil samples were processed by ALS Global in Perth. Alien agreed to acquire the tenement at the beginning of October. Approximately 600 soil samples were included in the deal, 370 of which have been found to be within the new licence.

On Friday, Alien Metals also has told investors that a detailed survey has begun for the Donovan 2 copper-gold project in Mexico. Capstone Mining (), which is earning into the project, has commissioned a detailed close-spaced surface Induced Polarisation (IP) geophysical survey across the majority of the tenement.

The aim is to add detail to the project’s northern anomaly and to extend historic geophysical work undertaken by Alien.

On the same day, () told investors it has increased the size of its exploration target at the Baita Plai polymetallic mine in Romania.

The company said that the size of the Antonio North area has increased to 1.4mln to 2.8mln tonnes, from 0.2mln to 0.5mln tonnes previously, which takes the estimate for the whole project to 3.2mln to 5.8mln tonnes from 1.8mln to 3mln tonnes. The increase is the result of a review of historical data which has only recently become available.

And Chaarat Gold Ltd. () said it is maintaining its current production guidance in an update on the current situation in Armenia, where it has an operating mine.

The AIM-quoted gold miner, which also has assets at various stages of development in the Kyrgyz Republic, noted that, on November 9,  2020, a peace deal brokered by Russia was agreed between Azerbaijan and Armenia in relation to the Nagorno-Karabakh region.

The company said the operational impact to it has been limited and management has successfully focused on higher-grade areas and treating additional third-party ore purchases. Additionally, transport routes and concentrate shipments have seen minimal impact from the conflict, it noted.

As a result, Chaarat said it is maintaining its annual production guidance of 55,000 gold equivalent ounces from its Kapan operation.

() shares rose on Thursday as the lead-zinc and silver developer said it has successfully renewed the investigation permit for its Toral project in Spain.

The AIM-listed firm said the permit has been renewed following a consultation process by regional authorities for a further three years until November 15, 2023, and that over the period it will prioritise the completion of all necessary tasks to enable an application to be made for a mining licence for Toral.

On the financing front, () said it is to issue US$35mln of convertible loan notes under an existing agreement with Orion Mine Finance. As an adjustment to the previously announced terms of the instrument, the conversion price of the convertible loan notes has been set at 17p.

The proceeds from the issue of the convertible loan notes will go towards the first phase of Vanchem’s critical refurbishment programme and debt repayment.

() unveiled revised terms for its transaction with KPZ International for the Kalengwa exploration project, Zambia. A joint venture agreement struck in April 2020 envisaged two US$125,000 payments scheduled for August and December respectively, but it is now agreed that Bezant will make a single issue of shares to KPZ.

Bezant is issuing 76.9mln new shares, priced at 0.25p each, to KPZ shareholders. The pricing is based on the three-day volume-weighted price (VWAP) as of November 5, 2020.

() has increased its stake in EnviroCopper Limited (ECL), an Australian company with an earn-in on the Kapunda gold-silver project in southern Australia. With the payment of a final A$185,000 investment tranche, completing a A$400,000 agreement, the London-listed companies interest in EnviroCopper increases to 30%.

At the same time, EnviroCopper has earned its initial 50% interest in Kapunda, and now moves into the phase that would see it earn up to 75%.

Bacanora Lithium PLC () told investors on Friday that its Chinese backer Ganfeng Lithium has exercised its option to increase its stake in the Sonora lithium project in Mexico. Gangfeng is a cornerstone investor in Bacanora and also an offtake partner for the Sonora project.

The Chinese firm will subscribe for 73.95mln new shares in the SLL vehicle, an operational holding company for the project, giving the Chinese group 50% ownership. Bacanora remains project operator and Ganfeng will lead engineering, procurement and construction.

The AIM-quoted firm said it remains on schedule to kick off initial site works at Sonora in 2021, with production due to start production in 2023.

Bushveld Minerals Limited () told investors this week that it is delighted with the progress of a solar power and energy storage project at the Vametco mine site in South Africa.

The ‘mini-grid’ project will comprise around 3.5 megawatts of solar photovoltaic (PV) generation and 4 megawatts hours of vanadium redox flow battery (VRFB) energy storage. It will boost energy security for the mining operation and also demonstrate the utility of vanadium-based energy storage solutions for industrial settings.

Elsewhere, () said contractors have been instructed to get ready to start accelerated development works at its 300 megawatt (MW) coal-fired power project and coal mine and that a third-party study on the Mozambique power market will be submitted in coming weeks.

In order to proceed, an early development works budget has been agreed with lead strategic partner China Machinery Engineering Corporation (CMEC).

Elsewhere, () noted that it will be included as a UK Constituent in the MSCI Global Small Cap Indexes, commencing following the close of November 30, 2020. The MSCI Indexes span equity markets for more than 80 countries across developed, emerging and frontier markets, with small-cap representation across 23 developed market countries. 

And () was pleased to note this week that it had been included in the London Stock Exchange ‘1,000 Companies to Inspire Britain 2020’ report,  an annual celebration of some of the fastest-growing and most dynamic enterprises in the UK.

To build the list, key financial performance indicators and sector benchmarks were analysed before being separated by Standard Industrial Classification groupings. Within each sector, the companies are ranked by their individual growth rates, and those that have most outperformed their sector averages are identified.

Of the 1,000 Companies, Anglo Pacific featured as one of only 15 mining sector companies selected.

Read More: Power Metals Resources PLC, Red Rock Resources PLC, Jubilee Metals Group PLC, Condor Gold PLC, Caledonia Mining Corporation PLC …

2020-11-14 03:30:00

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