Morning Mumble: Amara Mining (AMA) who are they speaking to...& phwoar!

Further encouraging drill results update for Yaoure Drilling Results aren't actually that exciting, but it would appear they're sending out the right messages via Morse code. Now, forget the speculation for Amara (AMA) / Yaoure project and look at the facts and that's without fine tuning the Yaoure's prospects. It hits the criteria for all the big boys and perhaps one company with some Sovereign Wealth links looking to acquire and get into gold. 

With Randgold's and all other producers needing to acquire projects that produce significant higher returns they're left with either their higher cost projects (stripping out costs) or acquisitions to substantiate their valuation. At 22 pence, there's not much upside now but with a potential 50% return in weeks/months its better than 99% of the crap out there, even if AMA were to go it alone, surely financing at a small discount is possible? Albeit this is very unlikely...

Staying with all things precious, Petropavlovsk Plc (POG's) Statement regarding Share Price Movement sounds more like Mork calling Orson (read as Awesome). The share price is weak because the company is in dire straits. Save for the obvious movement in gold POG won't be paying anything soon to shareholders unless a curve ball appears. However more importantly, POG need to contact their BONDholders. Perhaps one would be wise to entitle an RNS, calling all bottom draw bond holders to root through their "long-termers" to contact POG. So a statement regarding share price movements isn't like to get the desired response...or am I being petty. 

Now here's some "irony" for those long suffering folk at Kenmare Resources plc : the Q2 2014 Production Report. So when running through the debt laden, underachievers performance KMR holders can take comfort in the fact that the company is clearly in negotiations still with Iluka Resources Limited ("Iluka"). 

In applying common-sense (shocking on AIM) why has KMR organised temporary power? You're thinking the grid in Mozambique cannot handle the power demands for the seasonal increase in December-February. Well actually that's perfectly correct. However neither can KMR handle producing through the months of December-February as they have sufficient stocks to sell through this period as of this update, KMR have 177,900 tonnes in stock. They actually have such significant stockpiles they can merely sell their stock and avoid the additional power commitments. So by the next update, if all things remain equal by Q3, they'll have near 217Kt's of stock sufficient for more than a quarter's sales.

Notwithstanding the true realities of the market for titanium feedstocks, and the assertions that KMR will benefit from the Pigment Industry restocking from the overstocked levels of 2012. One hopes that they can achieve a better price for the company before the half year results on the 27th August 2014, where the dreaded D word (Debt) will have to be mentioned (whispered) and the true realities of the company become live again. Its my view, that the pigment industry is restocking with a better approach than their knee-jerk reactions of 2012 that caused a spike and crash. So over to Iluka, whom are well-managed to consider a further offer, anything above 20 pence wouldn't be a positive for Iluka. Its over to the man at the Pru to see the realities and hammer out a deal pre-half year results.

Caledonia Mining (CMCL) declared its 3rd quarterly dividend. The yield is around 6% today, which isn't to be sniffed at. As a cursory reminder for those looking at decent aim companies (not without political or geo risks) the company is well-managed, has around £15m in cash post divi payments and no debt. The realities of their production are an all-in cost (which includes the investment in expansion projects) US$1,109 per ounce, which isn't to be sniffed at all. The risks are, with rumours increasing of a further acquisition, one hopes this is in cash rather than the issuance of shares! Perhaps in due course we'll hear about this "potential" company changer CMCL are sniffing at in Zambia and Namibia. We shall hold our breath and dream of spending the dividend...

Perhaps the longs on Copper would be wise to consider Freeport says draft MoU agreed but not signed, no export timeframe. Yes the New Government may have issues with the MoU, however its more than likely any processed metals will be allowed to be exported 'with conditions' by any new Government as common-sense sets in. The Smelter Bonds appear to be the way forward for Indonesia....finally someone whom hasn't a full lobotomy.

Sadly no time to cover, AO., Greggs, Monitise or Just Eat. For those following Markets Live the prudent discussion I had regarding Monitise about the risks and the share price have been realised in today's trading statement . However I will be sending AO. a thank you card for paying for my latest purchase!

Now for the hater's amongst the market, some of my work around (formally) Smiths News Group now known has Connect Group has been wasted due to the early than I had envisaged deterioration! It was my intention to get stuck into shorting Connect Group, whether the time has been missed I'm not sure, however today's update doesn't bode well for the holders... Connect Group Plc Interim Management Statement my initial research was looking at a target price of around 84 pence...I'll review it in due course with a fuller picture upon the end of my Holidays. 

Leggie, having just seen your post on VOG, its perhaps noted there was a switch play between LGO (Leni Oil & Gas) and Victoria Oil & Gas. Please note neither of them I am holding because of the management. Bowleven, I wholeheartedly agree...

Oops the blog name will be changing to http://erraticmarketcoverage.blogspot.co.uk/

Atb Fraser (slightly ropey).