Good Morning,
Its pleasing to see a decent amount of news-flow on a
Monday.
EMED have an extension to the loan facility. This extension reads as though a strong
armed is being applied to force (or appear to) force EMED into accept 'some'
terms that are on the table currently from the 'three' (Trafigura, Orion Mine
Finance and Hong Kong Xiangguang International). One assumes they'll be able to
organise a meeting by 30 April 2015 to avoid incurring extension
fees.
Some egg on the faces of those with very large positions in
QPP (Quindell) today, with the gossip proving right. QPP, for those with any
interest now, was something to avoid as the risks being significantly unknown.
It was surprising to speak to such a well-versed trader today whose position
was impacted by the news in Australia of Slater & Gordon overnight.
One for the learning curve?! Today it would have been rude not to have a cheeky
short "on the news."
Central Asia Metals (CAML) full-year results beat even the most bullish expectations, dividend up,
revenues up and profit beating the whisper by near 30%. Return on shareholder
funds even allowing for FX impairments and rebalancing of Kenges Rakishev
16.02% holding, are positive.
Improving EPS, bottom line and the Tenge devaluation aiding
costs CAML's cause. 60% of the cost base is Kazakhstan Tenge. Expects further bottom line
improvements as the full affects of the Tenge devaluation kick in, assuming
production levels are maintained.
With the copper market adopting a more realistic outlook,
even with the current prices, its hard not to justify 'turning positive on CAML
(again). See EMC: CAML from January. The EMC is slowly getting over its
issue with the director sales by Mr Nick Clarke, Chief Executive Officer, although one
will always have an issue with a director without skin in the game? We'll save
that for another day, expect a special dividend in due course.
Arian Silver (AGQ) achieves first concentrate production at San José, with the
more recent net smelter royalty purchase AGQ's woes may just
about to turn. Today's "not" very interesting news is Bluefield Solar (BSIF) most recent acquisition, those
SIPP investors will find it hard not to have some form of lower risk stability,
with a yield of just under 6% isn't too be sniffed at (EMC 2014 (BSIF). AND, GKP (Gulf Keystone) get an
extension on their homework!
Anglo American's (AAL's) inability to sell its assets and now looking to give them away doesn't bode well for Jubilee Platinum's (JLP) Tjate project in the mid-to-long-term. Blackrock realising AAL's woes a little too late, or perhaps "just in time" and selling down.
The news award goes to Randgold Resources (RRS), whom see growth opportunities.
Atb Fraser
