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Blencowe Resources #BRES – Publication of New Research Note
Blencowe, the natural resources company focused on development of the Orom-Cross Graphite Project in Uganda, is pleased to advise that Align Research has today published an updated research note on the Company.
The research note provides an update on operations since the first research note issued in May 2020 and contains a new target price for Blencowe of 19.1p per share.
The research has been placed on the Company’s website and can be found here:
For further information please contact:
| Blencowe Resources Plc Sam Quinn (London Director) | www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250 info@blencoweresourcesplc.com |
| Brandon Hill Capital Limited Jonathan Evans (Corporate Finance) | Tel: +44 (0)20 3463 5000 jonathan.evans@brandonhillcapital.com |
Background
Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of larger flakes identified from previous work performed. A 21-year Mining Licence was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.
Orom-Cross presents as a large, shallow open pitable deposit, with an estimated resource in excess of 3 billion tonnes of graphite. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.
Blencowe Resources (BRES) – New Research Initiation
Blencowe Resources, the recently relisted natural resources company focused on development of the Orom-Cross Graphite Project in Uganda, is pleased to advise that Align Research has today initiated research coverage on the Company.
The initiation piece covers both an overview of operations and a review of the broader graphite market and sets an initial target price for the Company of 18.1p per share.
The research has been placed on the Company’s website and can be found here:
https://blencoweresourcesplc.com/analyst-coverage/
For further information please contact:
|
Blencowe Resources Plc Cameron Pearce / Mike Ralston Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250 info@blencoweresourcesplc.com |
|
Brandon Hill Capital Limited Jonathan Evans (Corporate Finance) |
Tel: +44 (0)20 3463 5000 jonathan.evans@brandonhillcapital.com |
Align Research: Catenae Innovation (CTEA) Strategic turnaround provides exposure to high value, high growth, blockchain driven products
Catenae Innovation, formerly Milestone Group, is an AIM listed media and technology group which has recently completed a major restructuring under a new senior management team. The refocused strategy concentrates on the areas of media and fintech, delivered via a portfolio of synergous products, via subsidiaries and partnerships which take advantage of blockchain and distributed ledger technology.
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Strategic change focusses on high growth blockchain driven industries
In September last year Catenae commenced a major restructuring under interim CEO Tony Sanders. Along with the cessation of its previous social activities, several contracts in the fintech area deemed unable to deliver satisfactory results were also terminated. The new strategy concentrates on the areas of media and fintech, with the company set to launch a suite of products which use blockchain technology in the coming months.
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Joint venture with music industry veteran leads new approach
In March 2018, Catenae signed a joint-venture agreement with a company majority owned by music and technology industry specialist Martin Heath. The JV, named Trust in Media, will produce payment processing and intellectual property solutions, initially within the media industry, using a combination of private and public blockchain technologies.
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Fintech division provides further opportunities
Catenae is also launching a range of virtual banking and KYC/AML products. Since the company’s review and subsequent cancellation of an agreement with Nasdaq listed Black Cactus Global, Catenae has identified alternative partners to ensure it can provide solutions in this area on a best of breed approach.
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Valuation suggests 107% upside
On a near term EV/EBITDA valuation basis we set an initial target price of 0.28p per share, in excess of X2 the current share price. Recent management stock conversions of accrued fees at a premium to the current stock price underpins further our confidence in prospects for the immediate term. We therefore initiate coverage with a stance of Conviction Buy.
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RISK WARNING & DISCLAIMER
Catenae Innovation is a research client of Align Research. Align Research & a Director of Align Research own shares in Catenae Innovation. For full disclaimer information please refer to the last page of the full document. This investment may not be suitable for your personal circumstances. If you are in any doubt as to its suitability you should seek professional advice. This note does not constitute advice and your capital is at risk. This is a marketing communication and cannot be considered independent research.
Align Research – New Salt Lake Potash #SO4 MoU with Sinofert highlights potential upside
Investors woke up to a cracking announcement from Salt Lake Potash (AIM:SO4) this morning concerning a Memorandum of Understanding (MOU) for an Offtake Agreement with the Chinese fertiliser giant Sinofert Holdings Limited. The MOU sets out the basis for the second Offtake Agreement for SO4’s potentially vast Goldfields Salt Lakes Project (GSLP) for an initial 8 year term, beginning in January 2020.
This latest Offtake Agreement will provide Sinofert with sales and offtake rights for up to 50% of ALL Sulphate of Potash (SOP) production from across all the nine vast lakes in Western Australia which comprise the GSLP. In all, GSLP hosts a drainable exploration target of over 150Mt of SOP.
Soon, SO4 is planning to begin the 
construction of the Demonstration Plant at GSLP to produce 50,000 tpa of high-quality SOP, with the production being distributed by a handful of global distribution partners. Once the Demonstration Plant is up and running, the team has well-developed plans to progressively expand production across a number of the lakes within the GSLP. This is SO4’s second offtake agreement, having already entered into an agreement with Mitsubishi Corp for sales and offtake rights to 50% of the SOP production from the 50,000 tpa Demonstration Plant.
It worth taking a closer look at Sinofert which is the largest fertiliser company in China, with businesses encompassing the complete fertiliser industry chain. In all, this well-established fertiliser giant handles something like 13Mtpa of fertilisers as well as being the biggest fertiliser importer into China. Hong Kong-listed Sinofert is capitalised at over US$1 billion and is majority-owned by Sinochem Corporation, a Chinese State Owned Enterprise.
This deal serves to underline the viability and the economics of SO4’s vast high-grade SOP brine projects in Western Australia. Investors should realise that SOP represents a premium sustainable potash fertiliser which currently sells at more than double the price of the more commonly used MOP. With SOP being a high value fertiliser which is increasing being favoured by global demographics and in the shift to high value speciality crops such as citrus, potatoes, nuts, strawberries, mangoes, tomatoes, coffee, tobacco, spinach and peas.
Read the full Align research article here
Catenae Innovation #CTEA – Align Research note – Conviction Buy rating with initial 0.28p price target
Catenae (AIM:CTEA), the AIM quoted provider of digital media and technology, announces that Align Research has today produced a research note on the Company. The Company is pleased to note the comments of Align in their Note, including its “conviction to buy” stance and initial target price of 0.28 pence. However the Board wishes to emphasise that the views expressed in the Note are those of Align.
The Note should be read in full. To download it, please visit:
http://www.alignresearch.co.uk/cpt-company/catenae-innovation/
As always shareholders should speak to their own financial adviser before entering into any dealings in the Company’s shares. The views expressed by Align on the Company’s valuation and prospects are a matter of opinion and the Company is in no position to comment on whether they are accurate.
The Company also wishes to draw attention to the key risks identified by Align and its disclaimer and risk warning and the qualifications that it makes in its conclusion to the Note. Shareholders should also note that the Company is a research client of Align and that Align holds shares in the Company.
For further information:
| Catenae Innovation Plc Tony Sanders |
Tel: 020 7929 7826 |
| Cornhill Capital, Broker Dan Gee |
Tel: 020 3700 2500 |
Salt Lake Potash #SO4 – Align Research – Initiation of Coverage
Mining vast salt lakes in Australia to provide premium fertiliser to help feed the world’s rapidly growing population
ASX-listed Salt Lake Potash dual-listed on AIM in 2011 as the uranium play Wildhorse Energy. In 2015, post a restructuring, Australia Salt Lake Potash was acquired, a company which owned two large-scale high-grade Sulphate of Potash (SOP) brine projects in Western Australia. Rapid progress has seen a Mineral Resource Estimate, a positive Scoping Study and validation of the technical viability which has culminated in an MOU for an offtake agreement with Mitsubishi which de-risks the project.
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Powerful agriculture megatrends see increasing demand for SOP
Not only is the world’s population growing fast, but rising incomes mean increasing demand for higher value food crops. At the same time, urban growth means that there is less land left over for farming. So, fertilisers are becoming increasingly important to improve the efficiency of farming.
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World class SOP project that comes from a good stable
The Goldfields Salt Lake Project covers a vast area with both very low operating costs and capital intensity in a safe jurisdiction. This is the hallmark of Apollo Group, which are also behind Prairie Mining and enjoy quite a following after successes with Mantra Resources, Papillon Resources and Berkeley Energia.
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First cash flow expected in 2020 & A$288m annual revenue from 2024
Investors won’t have to wait too long until the project begins generating cash flow from SOP sales, unlike shareholders in £1.4bn market cap Sirius Minerals who seem to have been remarkably patient for many years now.
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Risked conservative NPV suggests an upside of 333%
Our conservative valuation shows the potential of the company. We initiate coverage of Salt Lake Potash with a target price of 132p and Conviction Buy stance.
Link here to view the article on the Align Research website
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RISK WARNING & DISCLAIMER
Salt Lake Potash is a research client of Align Research. For full disclaimer information please refer to the last page of the full document. This investment may not be suitable for your personal circumstances. If you are in any doubt as to its suitability you should seek professional advice. This note does not constitute advice and your capital is at risk. This is a marketing communication and cannot be considered independent research.
| Year to June | 2016A | 2017A | 2018E | 2019E |
|---|---|---|---|---|
| Revenue (A$,000) | 73 | 727 | 1,100 | 1,300 |
| Pre-Tax (A$’000) | (4,645) | (9,201( | (9,800) | (4,800) |
| EPS | (4.13) | (6.61) | (5.65) | (2.64) |
Prairie Mining #PDZ – Align Research comment re legal proceedings in Poland
In recent weeks shares in Prairie Mining have been experiencing a bit of a rough ride on concerns about licence issues for their key coal asset in Poland. When we initiated coverage on Prairie in September 2017 we did point out that the company was a potential world-class hard coking coal supplier with two low cost projects in Poland to supply Europe’s leading steel makers. Additionally, we saw the company as a likely acquisition target.
In July 2015, Prairie Mining was granted the exclusive right to apply for the Mining Concession at Jan Karski until 2 April 2018. The Deposit Development Plan and the Spatial Development Plan were approved in May and August 2017 respectively. On 30 November 2017, Prairie submitted the Environmental and Social Impact Assessment (ESIA) which independent consultants confirmed met all the necessary requirements. As yet, the company has not received the necessary Environmental Consent decision and so has been unable to apply for a Mining Concession at Jan Karski.
On 03 April 2018, the company provided an update on the Jan Karski concession. Basically, Prairie has been waiting some while for the required Environmental Consent decision. The approval of Prairie’s Geological Documentation in 2015 also gave the company the legal right to apply for a Mining Usufruct Agreement over Jan Karski for an additional 12-month period beyond April 2018. This serves to stop any other parties being granted any licence over all or part of the Jan Karski concessions. Under Polish law, the Ministry of Environment (MoE) is strictly obligated, within three months of Prairie making an application for a Mining Usufruct Agreement, to grant the agreement. Legal advice provided to Prairie concludes that failure of the MoE to grant the company the Mining Usufruct Agreement is a breach of Polish law. As a consequence of this failure the company has now commenced legal proceedings against the MoE through the Polish courts in order to protect the company’s security of tenure over the Jan Karski concessions.
The feeling on the ground is that the delays of the MoE might be just down to inefficiency in a government department. As true world-class assets, these coal projects are important to Poland and so there is big local support for the jobs that they will provide along with the potential benefits to the local and national economies. The legal action very neatly brings these delays to the attention of the Polish people as well as the politicians.This latest news came just days after it was announced that the company disclosed a co-operation agreement with Jastrzębska Spółka Węglowa SA (JSW) concerning Prairie’s Jan Karski and Debiensko projects. Interestingly enough JSW which has a market cap in excess of £2 billion is 55% owned by the Polish Government.
Truth is that this latest event seems to be par for the course in being involved in high profile projects in Poland and such an event seems to pop up every couple of years and company has been here before. In September 2014, Prairie was advised that the Polish Ministry of the Environment had officially rejected an application from Lubelski Wegiel BOGDANKA S.A. for a mining concession over the company’s K-6-7 coal concession in Poland. The main point is that Prairie has successfully legally dealt with such an issue before.
We this believe that the current weakness could serve to provide a good buying opportunity once further clarification occurs.
Link here to view the article on the Align Research website
DISCLOSURE & RISK WARNING
This is a marketing communication and cannot be considered independent research. Nothing in this report should be construed as advice, an offer, or the solicitation of an offer to buy or sell securities by us. As we have no knowledge of your individual situation and circumstances the investment(s) covered may not be suitable for you. You should not make any investment decision without consulting a fully qualified financial advisor.
Your capital is at risk by investing in securities and the income from them may fluctuate. Past performance is not necessarily a guide to future performance and forecasts are not a reliable indicator of future results. The marketability of some of the companies we cover is limited and you may have difficulty buying or selling in volume. Additionally, given the smaller capitalisation bias of our coverage, the companies we cover should be considered as high risk.
This financial promotion has been approved by Align Research Limited.
Prairie Mining #PDZ – Initiation of Coverage. Conviction Buy. Target price 118p
by Align Research
Prairie Mining #PDZ – Initiation of Coverage. Conviction Buy. Target price 118p
“Under the radar” potential world-class hard coking coal supplier with two low-cost projects in Poland to supply Europe’s leading steel makers & a likely acquisition target
Prairie Mining listed in London in 2015 to bring its hard coking coal interests in Poland to the attention of European investors. The company is currently moving its two-impressive large Tier-1 low-cost coking coal projects towards production as early as 2023.
– Enviable high margin projects at currently strong coking coal prices
Prairie is continuing to advance its two projects towards production and has a world-class partner in China Coal, the second largest coal miner in China. In the current strong coking coal price environment, Prairie looks likely to be an M&A target in our opinion as majors are seeking such world class Tier-1 projects and midcap producers need growth options.
– Close to Europe’s steel makers who rely on imports for 85% of supplies
Europe is a big importer of coking coal from Australia and the US. Coking coal from Prairie’s low-cost Polish projects should attract a premium price due to its quality comparable to coal produced by the majors and far lower transportation costs being on the doorstep of big European steel makers.
– Management has proven expertise in project development & financing
CEO Ben Stoikovich is an ex-BHP coal mining engineer/investment banker whose skills have helped get Prairie where it is today. Managing operations in Poland is Miroslaw Taras, the ex-CEO of the neighbouring Bogdanka coal mine which he turned into Europe’s lowest cost coal producer.
– DCF analysis reveals potential upside of 250%
Discounting forecast cash flows from the two planned coking coal mines and assigning what we consider to be highly conservative risk factors gives a target price of 118p. We thus initiate coverage of Prairie Mining with a Conviction Buy stance.
To read the full note visit http://www.alignresearch.co.uk/cpt-company/prairie-mining/