Good Morning,
Brief today as have a number of meetings then a school trip!
Gemfields's Singapore
auction closed yesterday with an average of $617.42 per carat down a
near 10% on the December 14 higher quality stones auction ($688.64/carat). In
the absence of a decent marketing push, the decline in number of lots and sales
revenue from these higher quality stones is going to continue. Not only were
the lots sold a paltry 61% of those offered (46), but also was the price
achieved. Over to GEM to find a way forward.
For those that didn't top slice, sell or trade Allied Minds
(ALM), today brings news of their joint venture, ABLS (Allied-Bristol Life
Sciences, LLC) acquiring licenses
from Harvard. ABLS is a jointly owned entity between Allied Minds and
Bristol-Myers Squibb Co.
Tullow Oil (TLW) have got off a little lighter tax bill than the Ugandan Government had hoped for.
Both parties have agreed to a full and final figure of $250M, near $273M
below what was claimed at $473M. TLW also have got an instalment plan put in
place. After consideration of the $142 million already paid TLW have a mere
$36M ($108 million in total).
Providence Resources (PVR), yet again gives news that is
pretty much academic in the absence of the lack of a farm out for
Barryroe. The Technical Update, Newgrange Prospect, although
"good news" isn't what the market is looking for. In the absence of
such a deal for Barryroe, one has to wonder how long Tony O' Reilly's
position remains acceptable to the shareholders.
Surely there are not rumblings of disgruntled and
'impatient' shareholders at PVR. Or worse, has the soon to be partner realised
PVR are over a barrel and hard ball is being played out.
Savannah Resources (SAV), appears to being pushed in the
press, with a deal where SAV can earn up to 51% Mutamba/Jangamo with the
formation of Joint Venture with Rio Tinto of all companies. There's
a number of woes here, firstly investors would be wise to consider the woes of
this deal. Why Rio would want to be a minority partner in any business it conducts
raises significant questions about Heavy Mineral Sands. This is guaranteed to
be revisited in due course, expect a fund raising in due course on the back of
the "significance."
Ormonde Mining (ORM) will be grateful of the Oaktree financing as their final results out last Wednesday, show they had around
200K ish left in the kitty. Had investors paid attention to the EMC (EMC: ORM February 2015) they'd have saved themselves near 40%
and some 70% longer-term. After today's update, one would be wise to consider
how the financing assists with working capital requirements, same as SAV, this
will be revisited.
Shareholders in Thornton's (THT) have been saved, with an
offer from Ferrero at 145 pence. In the absence of additional
interest, it’s wise to take the cash and run, especially those in more recently
over the past 3 months. Hat-tip Richard S and CwC for some decent research
there, have conducted none of it myself it was a pleasure free-loading for
once, although very small!
Its noted that a certain small brokerage should get more commendation for their
work especially after 3 kills in near as many days! Perhaps Charles Stanley can save themselves considerable time
reviewing their targets and just put 145 pence!
With a chance of Director at Bacanora Minerals (BCN), maybe the company forgot to thank
him for his services? Of significance is the change at Sierra Rutile (SRX)
whom has appointed a chap associated previously with African Minerals. A brave appointment in light of SRX's
recent share price recovery.
Atb Fraser
