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Uranium Resources plc (URA: AIM) review and analysis
20 March 2010
Uranium Resources plc (URA) is an exploration and development company focused on acquiring and developing resources within intermediate-term development cycles. Principally, the company seeks to broaden its uranium-focused project portfolio in Tanzania. The company seeks to increase its acreage, acquire precious metals projects and use its expertise to build a multi-commodity portfolio.
Toledo Mining Corp Plc (TMC: AIM) review and analysis
20 March 2010
Toledo Mining Corporation Plc (Toledo) is a nickel exploration and development company with operations on Palawan Island in the Philippines. The company estimates Berong and Celestial combined pre-JORC resources of some 350 Mt grading 1.3% nickel. It reported 563,280 wet-Mt of ore production and shipped 418,350 wet-Mt in FY 2009. Moreover, although the company did not record any production during 1H 10, it shipped 143,765 wet-Mt during the period.
Stratex plc (STI: AIM) review and analysis
20 March 2010
Stratex plc (STI) is an international exploration and development company focused on finding and developing high-value mineral resours foces, primarily gold, copper, molybdenum, nickel and zinc. The firm waunded in 2004 and admitted to AIM in 2006.
Strategic Natural Resources Plc (SNRP: AIM) review and analysis
20 March 2010
Strategic Natural Resources Plc (Strategic) was founded in 2004 as a vehicle to develop, own and manage natural resource extraction enterprises in South Africa. The company is headquartered in London, UK and was admitted to AIM on 7 August 2007. The company currently engages in mining and exploration of coal in South Africa through its subsidiary, Elitheni Coal (Pty) Limited (Elitheni). Elitheni holds prospecting rights over approximately 185,000 hectares (ha) area in the Eastern Cape coalfield in South Africa, demarcated into Phases 1, 2, 3, 4 and 5. The current total prospective rights area is a notable increase from the initial 9,238 hectares granted in 2005 under Phases 1 and 2. Phase 5 prospecting rights area (named “Project Indlovu”) of 119,374 ha have been awarded in November 2009.
Sirius Exploration PLC (SXX: AIM) review and analysis
20 March 2010
Sirius Exploration Plc (Sirius) is a diversified mining and exploration company with exploration leases for salt and potash mining assets in Australia and the US. In addition to mining, Sirius intends to use salt caverns created during mining to store electricity and hydrocarbons. Although Sirius also has minority stakes in metal mining assets, Management intends to focus on potash and storage of energy, natural gas and carbon dioxide over the coming years. The company followed a major acquisition program in 2009, funded through the issuance of equity, which has led to a surge in its equity base from 102.2 mn in January 2009 to 628.1 mn on 29 January 2010. On 1 March 2010 the company's ADRs (ticker SRUXY) moved up from the Pink OTC markets to the OTCQX market, to provide better information flow and higher visibility.
Providence Resources Plc (PVR: AIM) review and analysis
20 March 2010
Founded in 1997 from the de-merger of Arcon International Resources Plc’s hydrocarbon assets, Providence Resource Plc (Providence) is an international upstream oil and gas company operating in exploration, appraisal, development and production of oil and gas. The company entered the gas storage and trading activities by exercising the option to acquire a 40% interest in the Kinsale Head Area assets (offshore Ireland) from Petroliam Nasional Berhad (PETRONAS) in September 2009. The acquisition is expected to complete by the end of 1Q2010.GBP14.4 mn. The proceeds will be used for investing in increasing production levels and providing general working capital.
Orosur Mining Inc (OMI: AIM) review and analysis
20 March 2010
OROSUR Mining Inc. (OMI) is a fully integrated gold exploration and production company focused on identifying and developing gold mining projects in Latin America. The company operates the only producing gold mine in Uruguay (San Gregorio) and has assembled an exploration portfolio of high-quality assets in Uruguay, Chile and Argentina. San Gregorio Mine Complex: This complex is located in Uruguay’s Isla Cristalina Belt region 400km north of Montevideo and is composed of two main pits (San Gregorio and Arenal) and a gold processing plant. The San Gregorio mine complex is the company’s main gold producing asset and is a mature property. In FY 2009, San Gregorio produced 70,147 oz of gold at a grade of 1.73 g/t. For FY 2010, Orosur projects production of 57,500 oz at a grade of 1.25 g/t.
Crude oil futures slip as funds increase bet on higher prices
20 March 2010
Crude oil futures kept falling back from highs even though speculative funds increased their bets that prices are headed higher. The benchmark West Texas Intermediate contract ended the week at $80.68 a barrel, after nearing $83 earlier in the week, compared to $81.24 a week ago.
Weekly market update (March 20, 2010)
20 March 2010
Equity markets sustained their gradual upward trajectory this week, with the S&P500 and DJIA joining the Nasdaq at new 16-month highs, as traders were transfixed by finance and healthcare legislative dramas in Washington. The fate of the healthcare reform bill hung in the balance all week as the Democrats desperately tried to coral the simple majority they need to pass the final package in the House. The final House vote is expected on Sunday, with a final Senate vote seen early next week. Passage seems likely, although it appears to be far from a sure bet as of Friday evening. Meanwhile, policy meetings at the FOMC and the Bank of Japan left rates alone, most data was comfortably in line with expectations and at its Spring conference OPEC kept its output quotas unchanged for the fifth consecutive time. On Thursday, rumors of a second intra-meeting hike in the Fed discount rate made the rounds, prompting the Fed to issue a "no comment," but ultimately no discount rate action ensued. Among economic reports, the headline February PPI number showed its biggest decline since last July, prompting more deflation jitters. Stocks and commodities traded off somewhat on Friday when India surprised investors with a rate hike just after the US equity market open, driving a sudden wave of risk aversion (volatility in stocks was accentuated on Friday by quadruple witching). A down day on Friday, broke an eight day win streak for the DJIA, but for the week, the DJIA still gained 1.1%, the Nasdaq rose 0.3%, and the S&P500 climbed 0.9%.
Senator Dodd outlined his proposal for financial regulation reform on Monday
20 March 2010
Senator Dodd outlined his proposal for financial regulation reform on Monday. Dodd's bill would create an independent consumer agency within the Federal Reserve, require hedge funds with over $100M in assets to register with the Fed and force trading in certain derivative onto public exchanges. In an attempt to end the "too big to fail" problem, the bill would restrain the Fed's ability to bail out failing firms and require approval of three bankruptcy judges within 24 hours to liquidate a large firm.
There continues to be a susurrus of takeover rumors in circulation, including talk of private equity offers for Harley Davidson and Beazer Homes making the rounds
20 March 2010
There continues to be a susurrus of takeover rumors in circulation, including talk of private equity offers for Harley Davidson and Beazer Homes making the rounds. Teva signed a deal to acquire German drug maker Ratiopharm for ˆ3.63B, further securing its position as the world's number one generic drug maker. Teva, which beat rival bids from Pfizer and Iceland's Actavis, said the combined company would have had 2009 revenues of more than $16B, up from Teva's own sales of around $14B.
The TARP was back in headlines this week as three major firms, including Comerica, Hartford Financial and Discover Financial Services
20 March 2010
The TARP was back in headlines this week as three major firms, including Comerica, Hartford Financial and Discover Financial Services, signed deals to pay back their government funds. Discover surprised investors with a sizable quarterly loss, versus expectations of solid profitability. Discover's delinquency rates are improving, however its provision for loan losses continues to grow.
In tech, there were reports that Google would formally announce its withdrawal from the Chinese market next week
20 March 2010
In tech, there were reports that Google would formally announce its withdrawal from the Chinese market next week, setting off a debate among industry watchers about which firms would most benefit from the move. Additionally, the London Independent reported that Facebook overtook Google as the most popular site in the US for the first time, based on data from Hitwise.
The FOMC meeting, not surprisingly, was the main focus of Treasury market coming into the week
20 March 2010
The FOMC meeting, not surprisingly, was the main focus of Treasury market coming into the week. Prices rallied and yields dropped after the Fed left rates unchanged and indicated they were still months away from considering moving the funds rate. Fed fund futures even ticked a little higher initially, indicating slightly lower expectations the Fed will move at the end of this year, but better demand was primarily seen at the long end of the curve.
FX traders shifted focus away from European peripherals and toward the FOMC and BOJ central bank meetings early on this week
20 March 2010
FX traders shifted focus away from European peripherals and toward the FOMC and BOJ central bank meetings early on this week. But the Greek tragedy refused to leave the stage, and the euro continued to suffer from more EU discord over how to help Greece get out of its debt hole. EU Finance Ministers provided a strategy for emergency "standby" loans in case Greece's ˆ4.8B austerity measures failed to bring the country's budget deficit back into line with Maastrict Stability Pact criteria.
Greece submitted a progress report on its 4.8B euro deficit cutting plan to the EU
20 March 2010
Greece submitted a progress report on its ˆ4.8B deficit cutting plan to the EU. The rating agencies seem pleased with Greece's progress so far. On Tuesday S&P took Greece off its credit watch negative list and affirmed the country's BBB+ sovereign rating. At their meeting this week, European finance minters discussed the proposed European Monetary Fund (EMF), while France and Germany exchanged barbs over how best to handle the problem.
Indian stock market and companies daily report (March 19, 2010, Friday)
19 March 2010
The Sensex slipped into the red soon after initial gains, hitting a fresh day's low in mid-morning trade. The market recouped its entire losses later. The Sensex hit a fresh intraday low in afternoon trade as Asian stocks fell. The key benchmark indices surged to the day's highs at the fag end of trade after global rating agency Standard & Poor's (S&P) revised India's rating outlook to stable from negative. S&P affirmed the 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India. Capital goods, FMCG stocks fell. Auto stocks were mixed. Banking and metal stocks rose. Stocks were volatile as traders rolled over positions in the derivatives segment from the March 2010 series to the April 2010 series, ahead of the expiry of the near-month March 2010 contracts on Thursday, 25 March 2010. Both the Sensex and Nifty gained 0.2% and 0.3%, respectively, while the BSE Mid-cap and Small-cap indices also gained 0.4% and 0.1%, respectively.
Electrosteel Castings review and analysis by Angel Broking
19 March 2010
Electrosteel Castings (ECL) is a leading player in ductile iron (DI) pipes and is venturing into steel making through its subsidiary Electrosteel Integrated (EIL), which is setting up a 2.2mn tonne steel plant expected to be commissioned by FY2012E. ECL's backward integration initiatives through allocation of coking coal mines are expected to result in expansion of EBITDA Margin by 1,304bp over FY2009-12E. The company is also awaiting final environmental clearance for its iron ore mine, which will further lower costs, but has not been factored in our estimates. Further, listing of EIL in which ECL holds 40% stake could unlock value for ECL. We Initiate Coverage on the stock, with a Buy recommendation and 18-month SOTP Target Price of Rs72, valuing the Core business at 8x FY2012E FDEPS and its investments in the Steel business at 1x Book Value.
Indian stock market daily morning report (March 19, 2010, Friday)
19 March 2010
The Sensex closed marginally positive, extending its gains for the third successive day yesterday, after global rating agency Standard & Poor's upgraded India's outlook from negative to stable, saying the country's fiscal position could begin to recover and the economy would remain on a strong growth path. Bank, IT and metal stocks supported the market while FMCG and capital goods stocks capped gains.
Paul krugman versus reality
19 March 2010
In his latest weekly New York Times column, Nobel Prize-winning economist Paul Krugman put forward arguments that were so nonsensical that the award committee should ask for its medal back. Recent rhetoric from Washington has put the economic relationship between the U.S. and China squarely on the front burner, and Krugman is demanding that we crank up the flame. This week 130 members of Congress sent a letter to Treasury Secretary Timothy Geithner demanding that the Obama administration designate China as a "currency manipulator". Following that, a bipartisan group of senators introduced a bill that looks to force the Obama administration's hand. For its own part, Beijing invites criticism by continuing to deny its utterly obvious currency agenda.
Persistent Systems IPO review and analysis by Angel Broking
19 March 2010
Persistent Systems Limited (PSL) is a Pune-based IT company engaged in niche Offshore software Product Development (OPD) services, employing about 4,639 employees (including over 3,700 software professionals). The company is trading on economical valuations, at a P/E of 10.4x and an EV/Sales of 1.5x on its FY2012E estimates. Hence, we recommend a Subscribe view to the IPO.
The demand for the high-risk currencies increased again. The oil rate consolidated above the $82 mark per barrel
19 March 2010
Euro: On Wednesday the demand for the high-risk currencies grew again. Euro: On Wednesday the demand for the high-risk currencies grew again. British Pound: The positive UK statistics was published on Wednesday. Japanese Yen: According to the decision of the Central Bank of Japan, the principal interest rate was left unchanged at the previous level of 0.10%. Canadian Dollar: The oil prices growth supported the Canadian dollar against the American dollar. Oil: Due to the weakening of the US dollar rate, the oil prices grew and consolidated above the level of $82 per barrel. And the statement of the OPEC countries confirming, that the quotas on oil production would not be increased so far, supported the oil prices as well.
Agricultural commodities daily review: India and other countries (March 19, 2010)
19 March 2010
Spices witnessed volatiles trading yesterday after long rally turmeric prices finally hit lower freeze during evening session along with jeera and chilli. Black pepper traded strong yesterday as reports of firm price trend in Vietnam helped the sentiments. Wheat futures ended flat on Thursday after the news in the market of ban on exports of Wheat to stay long limited its gains yesterday. Chana April contract ended almost 1% up on higher demand. Guar complex slumped up to 1% in yesterday's trading session. Oilseed complex traded in red territory on global cues. Soybean settled almost 1% down on the back of excess supply in the market. Soy oil and Palm oil too plunged on Thursday tracking international bourses.
Singapore stock market and companies daily report (CapitaCommercial Trust, Genting, Tiger Airways, Standard Chartered Bank) (March 19, 2010)
19 March 2010
CapitaCommercial Trust (CCT) on Wednesday said that it will issue $225m worth of convertible bonds and use 75-90 % of the proceeds to enhance its assets and refinance debt. In an update yesterday, CCT said that the convertible bonds issue has been fully placed out to institutional and accredited investors. The performance of the casino at Resorts World Sentosa is ‘on track’ and expected to go above our own expectations, said Genting Group chairman Lim Kok Thay on the sidelines of the opening of Universal Studios Singapore (USS). Tiger Airways and Standard Chartered Bank (Stanchart) have inked 2 new financing deals for pre-delivery payments (PDPs) on 6 aircraft from Airbus and the purchase of 7 A320 aircraft, scheduled for delivery in December 2011.
Gold and silver daily review (March 19, 2010)
19 March 2010
Gold futures ended higher on Thursday in spite of a strong dollar, as sovereign debt worries surrounding Greece and uncertainties about currencies prompted safe-haven buying.
Industrial metals (copper, aluminium, nickel, etc.) daily review (March 19, 2010)
19 March 2010
Industrial metals prices remained depressed in late business on Thursday, under pressure from a stronger dollar and fears that potential further monetary tightening in China could cap demand in the world's top copper consumer. Nickel being an exception posting fresh highs in last trading session.
Oil and natural gas daily review (March 19, 2010)
19 March 2010
Crude oil futures ended lower on Thursday as the euro fell against the dollar on persistent worries about Greece's debt problems, turning oil traders cautious and snuffing a two-day advance in oil prices.
Gulfsands Petroleum (LON:GPX.L) report: Preliminary approach
19 March 2010
Gulfsands Petroleum which has its primary assets in Syria (Block 26) and producing c. 10,250b/d received a preliminary approach yesterday. The FT reports that the bid values the company at more than £400m and is expected to reject the approach today. Working interest reserves are 1P 22mmBOE; 2P 40mmBOE
Russian stock market daily morning report (March 19, 2010, Friday)
19 March 2010
On Thursday the Russian share market was lightly volatile. The trades began with the slight gap down, but during the first minutes the market changed the movement direction and began climbing. In the second half of the trading session the sharfes were mainly slipping down. The oil quotes were the main driving factors. Besides, the stats on the unemployment of the U.S. showed slight restricting affect on the quotes. Among the liquid shares we should outline the shares of Rosneft and Vimpelcom. Shares of Rosneft continued slipping down due to the news on possible problems will accounting for the sold oil as a result of the acts by the courts of the U.S. and the UK. In case of Vimpelcom the quotes reduction of the company’s shares was indicated at NYSE, which might have been related to the possibility of excluding the notes of the operator from MSCI Barra indices.
Spot Gold slipped yesterday and touched a low of $1115.8
19 March 2010
Spot Goldprices slipped yesterday and touched a low of $1115.8 as a stronger dollar exerted pressure on prices. Risk aversion in the financial markets emerged as investors became concerned over Greece’s bailout issue which currently looks unlikely considering the apprehension shown by Germany over the same. This led the low-yielding dollar to gain as a safe-haven investment
Nymex crude oil prices closed at $82.20/bbl on Thursday
19 March 2010
Oil prices slipped yesterday on account of strength in the dollar and a situation of rising inventories in US. Crude oil prices closed at $82.2/bbl on Nymex on Thursday.
World stock markets news summary (US, UK, Europe, Asia) (March 19, 2010)
19 March 2010
The Federal Reserve may increase the discount rate, charged on direct loans to banks, before the next meeting of the Federal Open Market Committee on April 28, economists said. (BBG) Alistair Darling will reduce expected borrowing by up to GBP 10bln thanks to higher-than-forecast tax receipts, according to sources.
Gulfsands Petroleum, Borders and Southern, Cluff Gold news briefs
19 March 2010
Gulfsands Petroleum (HOLD, £3.00) rejected the unsolicited approach received yesterday regarding a possible offer for the Company. Borders and Southern announced that the Company has appointed Mirabaud Securities LLP as its joint broker with immediate effect. Cluff Gold announced record gold production of 19,288oz for the first two months of 2010.
Shree Ganesh Jewellery House IPO review and analysis by Keynote Capitals
19 March 2010
Shree Ganesh Jewellery House Ltd. (SGJHL) is a manufacturer and exporter of jewellery with 4 manufacturing units located at Manikanchan SEZ in West Bengal with a capacity of 29,500 Kgs of gold jewellery as of February 2010. It markets its jewellery in stores branded ‘Gaja’ and has in all 13 outlets. It intends to open 46 new retail outlets by FY13E. PE investors Credit Suisse PE Asia Investments (Mauritius) Ltd. and Bennett, Coleman & Co Ltd. entered the company in March 2008 and August 2009 respectively, at an effective price of Rs150 per share (discount of 44.4% to the cap price). Credit Suisse PE is partly exiting the company via the offer for sale in the IPO, generating a return of 80% on its investment.
Nighthawk Energy plc (LON:HAWK) report: Investment Case
19 March 2010
The March interims are a calendar event, not likely a major operational update. The 1,000b/d target in 2010 should be met early and potentially exceeded. Completions and production updates will ideally come periodically through out the year and not as a one-off
Indian stock market daily closing report (March 19, 2010)
19 March 2010
Market closed positive for fourth consecutive after a side way movement, There was huge buying seen in Telecom stocks like Bharati up by 3.65%, RCom up by 1.98% and Idea up by 2.08%. Market made an intraday High of 5270 and Low of 5237 and finally closed at 5263. The benchmark index Sensex closed at 17,519 up 59 points after making a high of 17,601 and low of 17,502. Among the broader indices - the BSE Midcap Index was up by 0.7% and Smallcap was up .37%. Today's market breadth was positive and Total Turnover was 93,932Cr which was . IT stocks were down today, TCS was down .82% , Financial Technologies was down .56%,Wipro was down .38% and Infosys Technologies was down by .35%.
EMED Mining Public Ltd (EMED: AIM) review and analysis
19 March 2010
EMED Mining Public Ltd (“EMED”) along with its subsidiaries (together called “the Group”) is engaged in exploration and development of natural resources, with a focus on copper and gold. With its corporate headquarter in Cyprus and operations base in Spain, EMED operates in Europe and Middle East regions. The company was listed on AIM in May 2005. It changed its name from Eastern Mediterranean Resources Public Ltd to EMED Mining Public Ltd in September 2006
Emerging Metals Ltd (EML: AIM) review and analysis
19 March 2010
Emerging Metals Limited (EML) is focused on investing in metals and bulk commodities where there is an anticipated imbalance in supply and demand.
Empyrean Energy Plc (EME: AIM) review and analysis
19 March 2010
Empyrean Energy Plc (Empyrean) was established with the aim to identify, analyse and finance rewarding projects in the fields of exploration, development and production of energy resources around the world. It primarily focuses on traditional Oil & Gas sector exploration and production activities in geopolitically stable environments like the US and Germany. Empyrean currently generates revenues from oil and gas sales from two of its three prospects in Texas, US. The company was incorporated in the UK in March 2005 and was listed on the AIM in July 2005. The company’s main assets are as follows:
European Nickel Plc (ENK: AIM) review and analysis
19 March 2010
European Nickel Plc (European Nickel) identifies, acquires, develops and exploits nickel-cobalt deposits internationally. The company has developed a low cost, heap leach process for the extraction of nickel from nickel laterites which it plans to commercialise at its flagship project in Turkey. It also has operations in the Philippines and Albania. On 2 Feb 2010 the company announced a merger implementation agreement (MIA) to acquire Rusina Mining NL's entire issued share capital in an equity-based transaction and the raising of USD19.4 mn. The combined group will have a total attributable resource base of 1.35 mn tonnes of contained nickel, with a medium term nickel production target of 50,000 tonnes per annum. Its 2 key projects are:
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