Weekly Brief 25th Febuary 2022
The market is recovering today after rising tensions over Russia and Ukraine caused share prices on the FTSE 100 to drop dramatically on Thursday. The LSE blue-chip index is up 1.2% after yesterday’s plunge of 3.9%; its worst day since 2020. The tech-heavy Nasdaq closed at 3.3% higher on Thursday following its opening plunge of the same amount. The FTSE 100 is up 1.39% so far on Friday, with fears of oil and gas supplies getting cut off resulting in prices surpassing US$100 a barrel. Gold has taken a close second, trading at US$1911.25/oz ounce at the time of writing.
Elsewhere, Barclays has taken a surprising turn with shares rising by 174% on Wednesday, after reporting record profits of £8.4 billion, exceeding analyst expectations and tripling from a year ago.
Rio Tinto decided to hand out about US$16.8 billion to shareholders – its largest-ever dividend and the second highest on record for a FTSE 100 company, after unveiling a 72% bounce year-on-year in underlying earnings of $21.4bn (£15.8bn) for 2021
In other, brighter news after what has been a tumultuous week to say the least, last Tuesday, the 22.02.2022, was hailed as ‘Twosday. Twins, Thomas and Daniel were born on 22/02/2022 and Mum, Laura, says “the date must be lucky!”. (We hope so!). The Queen, who was diagnosed with Covid last weekend, continued with ‘light duties’ throughout the week and appears to be on the mend. No surprises there then, Her Majesty, as steadfast as ever, aged 95. The O2 Arena is set to reopen today after Storm Eunice’s damages but there’ll be a hole in the roof so bring an umbrella!
In client news:
Empire Metals Limited [EEE: AIM], has signed a binding Tribute Agreement with Maher Mining for the Gindalbie Gold Project in Western Australia, which neighbours Empire’s flagship Eclipse Gold Project. The agreement grants Empire the exclusive right to explore, develop and mine within a granted area on Maher Mining’s mining lease. Several historical mine shafts are located within the area and recent near surface exploration has generated several high-grade gold targets. An exploratory drilling campaign aimed at testing several priority targets around the historical mine workings has been commenced. https://bit.ly/3IpGQxy
Mila Resources [LSE: MILA] updated the market on its latest drilling programme, located in a region which hosts some of the largest gold projects in Australia and adjacent to Bellevue Gold’s discoveries, in the Kathleen Valley Gold Project in Western Australia. The objective of the drill programme is to build on the existing JORC Inferred Resource and unlock the full potential of the project, Mark Stephenson, Mila’s CEO said:”We had a high level of confidence as we went into this drilling campaign, and initial results are supporting this belief that the initial resource declared at Kathleen Valley was simply the tip of the iceberg.”
The first drill hole at Kathleen Valley has intersected ~7.35m of sulphide mineralisation from 178.1m. RC pre-collar drilling for the second hole is complete and diamond core drilling below holes KVRC019 & KVRD024 is underway, targeting the primary dilation zone of the mineralisation. Moving forward, holes are being cased in preparation for downhole-electromagnetic (DHEM) surveying which will highlight sulphide rich zones to assist in targeting and locating the core of the mineralisation. https://bit.ly/3HmbyGC
Prospex Energy Plc (AIM: PXEN) held its General Meeting, where both resolutions were passed and as a result, a total of 70,137,143 new ordinary shares were issued pursuant to the placing, subscription and broker option announced 9 February, which raised £2.45m The proceeds will be used to acquire 20% of the Selva Malvezzi Field in Italy in order to double the company’s current holding to 37%, and fund the development costs of the Selva Project, ahead of first gas expected in Q1 2023. https://bit.ly/3MbYOWK
Zinnwald Lithium Plc (AIM: ZNWD) announced its final results for the year to 31 December 2021. The company revealed the significant advances made towards becoming an important supplier to Europe’s fast-growing lithium sector,having gained full control over its flagship Zinnwald Lithium Project in Germany during the period and focusing on ways to improve the project, and planning workstreams for 2022. https://bit.ly/3LWUTNr
BlueRock Diamonds PLC [AIM: BRD], the diamond producer in the Kimberley region of South Africa announced the discovery of an 11.95 carat stone at its Kareevlei mine in South Africa. The stone will go to tender later this week with an expected valuation in excess of US$100,000. Mike Houston, Executive Chairman said, “This is another excellent discovery that underpins Kareevlei’s ability to deliver large high value diamonds. Given the stone’s size and quality and continuing market buoyancy we look forward to the upcoming tender to build on the success of the January sales, which achieved an average price of USD565 per carat (2021 average: USD465ct).” To see additional large stones recovered in 2022/21 please refer to the RNS announcement. https://bit.ly/33VpTMA
PYX Resources Limited [LSE: PYX], released its operations update for the financial year 2021, which revealed strong performance in the fourth quarter due to surging in premium zircon production, sales volumes, and ?33% uplift in producation capacity. Other highlights included the completion of a succcessful AU$11.2m (£6.1m) fundraise in June 2021 and dual listing on the Main Market of the London Stock Exchange. PYX also reported a 33% increase in production capacity at its Mandiri’s Minerals Separation Plant – allowing for future production of rutile, leucoxene, and ilmenite- and it also started supplying fused zirconia to industry for high-tech applications.
PYX Resources’ Chairman and Chief Executive Officer, Oliver B. Hasler, said: “I am delighted with our achievements during 2021. The mineral sands industry is currently experiencing a strong upcycle, and market conditions are now ideal for the implementation of the Company’s growth strategy.” https://bit.ly/3siBHSc
Ferro-Alloy Resources Limited (LSE: FAR), the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, announced the appointment of Liberum Capital as a joint corporate broker alongside Shore Capital. https://bit.ly/3HmqlRo Insert link
Emmerson PLC (AIM: EML) appointed Jim Wynn as Chief Financial Officer. Mr Wynn is an experienced finance professional and chartered accountant with significant corporate experience, with a focus in the resource sector, and has held senior positions for a number of resource companies. In his role as finance director of Avocet Mining Plc, he set up a partnership with the Moroccan mining group Managem SA. Jim joins the Emmerson team at a key point in its growth as it advances its Khemisset Potash Project in Morocco into construction phase. https://bit.ly/33OEysG
Jangada Mines (AIM: JAN) has been issued the fifth tranche of 500,000 common shares in ValOre Metals Corp. in relation to the disposal of the company’s previously owned PGM project held by Pedra Branca Brasil Mineracao. Under the terms of the agreement with ValOre, completed in August 2019, Jangada sold its interests in Pedra Branca to ValOre in a cash and shares agreement, payable in several tranches, and this represents the fifth out of six with the final tranche due in six months. https://bit.ly/35rUnGe
You may have missed
Trident Royalties CEO, Adam Davidson, participated in “The rise of the royalty financing” webinar alongside Duke Royalty and hosted by Nick Osbourne of Primary Bid. Insert link
PYX CEO & Chairman, Oliver Hasler, was interviewed by Proactive to discuss the success of the London listing, what’s driving the price of zircon and background on PYX. Watch the interview here: http://bit.ly/3t3PZpb
In the news this week –
British airlines banned from Russian airspace
The England vs Wales Six Nations game ‘like a World Cup quarter-final’, says coach.
Money matters take centre-stage in France’s election.