Home » Posts tagged 'beaufort securities'
Tag Archives: beaufort securities
Cadence Minerals #KDNC – European Metals statement re Czech Ministry of Industry & Trade, plus statement re Beaufort Securities
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) note that European Metals Holdings (ASX & AIM: EMH) has responded to recent public statements and correspondence European Metals had received overnight from Mr Thomas Huner, Minister of Industry and Trade of the Czech Republic, purporting to terminate the Memorandum of Understanding dated 2 October 2017 between the European Metals and the Ministry of Industry and Trade.
The announcement by European Metals stated the following:
- The MoU outlines mutual willingness to explore downstream processing opportunities, Czech academic research into lithium processing, potential future co-operation and discussing and exploring possibilities of future agreements.
- All Company rights are derived from the current Czech legal system, notably the Geological and Mining Act, not the MoU.
- Any termination of the MoU would not in any way affect the exploration rights of the Company or the Company’s tenure over its exploration permits and the Company continues to progress the project with ongoing metallurgical testwork, discussions with offtakers and preparations for feasibility drilling underway.
The Company remains entirely focused on working with all stakeholders, including the Minister of Industry of Trade and the Government of the Czech Republic, to successfully develop the Cinovec Project as a first-in-kind project that will pave the way for a successful lithium mining and processing industry in the Czech Republic. We look forward to meeting with the Minister in the near term to further these discussions.
Cadence has a 20.4% equity stake in European Metals. The full release can be found at: https://www.europeanmet.com/wp-content/uploads/2018/03/20180302-Respose-to-Czech-Minister-of-Industry-Trade-Final.pdf
Statement re Beaufort Securities Limited
The Company notes the announcement today regarding Beaufort Securities Limited and Beaufort Asset Clearing Services Limited being placed into administration and that the Financial Conduct Authority has imposed requirements on BSL and BACSL to cease all regulatory activity. As a result, the London Stock Exchange has suspended BSL’s membership of the London Stock Exchange pending clarification of the firm’s position.
BSL is a joint broker to the Company pursuant to the AIM Rules for Companies. As a result of the suspension of its membership to the London Stock Exchange, BSL will no longer be able to provide broking services to the Company in accordance with the AIM Rules.
WH Ireland Limited, the Company’s NOMAD and other joint broker along with Hannam & Partners LLP, will continue to provide broking services to the Company.
– Ends –
For further information, please contact.
Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
Hannam & Partners LLP (Joint Broker) +44 (0) 207 907 8500
Neil Passmore
Giles Fitzpatrick
Square1 Consulting +44 (0) 207 929 5599
David Bick
Andalas Energy & Power #ADL – Statement re Joint Broker
Andalas Energy and Power Plc, the AIM traded Indonesian focused energy company (AIM: ADL), notes the announcement today regarding Beaufort Securities Limited and Beaufort Asset Clearing Services Limited being placed into insolvency and that the Financial Conduct Authority has imposed requirements on BSL and BACSL to cease all regulatory activity.
BSL is joint broker to the Company. As a result of the requirements imposed by the FCA, BSL will no longer be able to provide broking services to the Company. Cantor Fitzgerald will continue as nominated adviser and will now perform the role of sole broker to the Company.
-ENDS-
For Further Information:
| Simon Gorringe | Andalas Energy and Power Plc | Tel: +62 21 2783 2316 |
| Nick Tulloch / David Porter | Cantor Fitzgerald Europe | Tel: +44 20 7894 7000 |
Cadence Minerals #KDNC – Appointment of Beaufort Securities as Joint Broker & Director Share Purchases
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce the appointment of Beaufort Securities Limited as the Company’s joint broker with immediate effect.
Kiran Morzaria, Chief Executive Officer of Cadence, commented: “I’m pleased to announce the appointment of Beaufort Securities to complement our existing advisory services and assist in relaying the information about the lithium projects in which we are interested to the market and specifically to retail investors. Beaufort and their investor client base have a strong interest in the exploration for lithium and other technology minerals.”
Director Share Purchases under Defined Director Purchase Programme
As announced in December 2017 the Directors all entered into a Defined Director Purchase Programme in which they will each purchase £1,000 of ordinary shares per month for 12 months. These shares will be purchased from the market on the first Friday of each month starting on 2nd February 2018 and ending the 4th January 2019. The market will be notified of the purchases on the next trading day via a PDMR; Directors dealing notification.
The Directors have entered into a DDPP in an open period and under this programme are therefore committed to the purchase of shares in what otherwise may be a close period. Entering into the DDPP does not preclude the directors from buying additional shares in the Company during open periods.
Details of the Director purchases are contained in the table below:
|
Date Purchased |
Director |
Position |
Number of ordinary shares acquired |
Price paid per share (pence) |
|
02/02/2018 |
Andrew Suckling |
Executive Chairman |
340,000 |
0.29 |
|
02/02/2018 |
Kiran Morzaria |
Director & CEO |
361,991 |
0.28 |
|
02/02/2018 |
Donald Strang |
Finance Director |
350,000 |
0.29 |
|
02/02/2018 |
Adrian Fairbourn |
Non-Executive Director |
340,136 |
0.29 |
After these acquisitions the total notifiable share interest in the Company for the directors is as follows
|
Director |
Position |
Total Notifiable Interests (shares) |
|
Andrew Suckling |
Executive Chairman |
340,000 |
|
Kiran Morzaria |
Director & CEO |
8,870,763 |
|
Donald Strang |
Finance Director |
6,532,011 |
|
Adrian Fairbourn |
Non-Executive Director |
7,006,803 |
|
Total |
22,749,577 |
For further information:
|
NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM
|
1 |
Details of the person discharging managerial responsibilities/person closely associated |
|||||
|
a) |
Name |
Andrew Suckling |
||||
|
2 |
Reason for the notification |
|||||
|
a) |
Position/status |
Executive Chairman |
||||
|
b) |
Initial notification/ Amendment |
Initial Notification |
||||
|
3 |
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor |
|||||
|
a) |
Name |
Cadence Minerals PLC |
||||
|
b) |
LEI |
213800TUZWG9C2GRNO58 |
||||
|
4 |
Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted |
|||||
|
a) |
Description of the financial instrument, type of instrument
Identification code |
Ordinary Share
GB00B067JC96 |
||||
|
b) |
Nature of the transaction |
Defined Directors Share Purchase Programme |
||||
|
c) |
Price(s) and volume(s) |
|
||||
|
d) |
Aggregated information – Aggregated volume – Price |
340,000 0.0029 |
||||
|
e) |
Date of the transaction |
02/02/2018 |
||||
|
f) |
Place of the transaction |
XLON, AIM |
||||
|
1 |
Details of the person discharging managerial responsibilities/person closely associated |
|||||
|
a) |
Name |
Kiran Morzaria |
||||
|
2 |
Reason for the notification |
|||||
|
a) |
Position/status |
Director & CEO |
||||
|
b) |
Initial notification/ Amendment |
Initial notification |
||||
|
3 |
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor |
|||||
|
a) |
Name |
Cadence Minerals PLC |
||||
|
b) |
LEI |
213800TUZWG9C2GRNO58 |
||||
|
4 |
Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted |
|||||
|
a) |
Description of the financial instrument, type of instrument
Identification code |
Ordinary Share
GB00B067JC96 |
||||
|
b) |
Nature of the transaction |
Defined Directors Share Purchase Programme |
||||
|
c) |
Price(s) and volume(s) |
|
||||
|
d) |
Aggregated information – Aggregated volume – Price |
361,991 0.0028 |
||||
|
e) |
Date of the transaction |
02/02/2018 |
||||
|
f) |
Place of the transaction |
XLON, AIM |
||||
|
1 |
Details of the person discharging managerial responsibilities/person closely associated |
|||||
|
a) |
Name |
Donald Strang |
||||
|
2 |
Reason for the notification |
|||||
|
a) |
Position/status |
Finance Director |
||||
|
b) |
Initial notification/ Amendment |
Initial notification |
||||
|
3 |
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor |
|||||
|
a) |
Name |
Cadence Minerals PLC |
||||
|
b) |
LEI |
213800TUZWG9C2GRNO58 |
||||
|
4 |
Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted |
|||||
|
a) |
Description of the financial instrument, type of instrument
Identification code |
Ordinary Share
GB00B067JC96 |
||||
|
b) |
Nature of the transaction |
Defined Directors Share Purchase Programme |
||||
|
c) |
Price(s) and volume(s) |
|
||||
|
d) |
Aggregated information – Aggregated volume – Price |
350,000 0.0029 |
||||
|
e) |
Date of the transaction |
02/02/2018 |
||||
|
f) |
Place of the transaction |
XLON, AIM |
||||
|
1 |
Details of the person discharging managerial responsibilities/person closely associated |
|||||
|
a) |
Name |
Adrian Fairbourn |
||||
|
2 |
Reason for the notification |
|||||
|
a) |
Position/status |
Non-Executive Director |
||||
|
b) |
Initial notification/ Amendment |
Initial notification |
||||
|
3 |
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor |
|||||
|
a) |
Name |
Cadence Minerals PLC |
||||
|
b) |
LEI |
213800TUZWG9C2GRNO58 |
||||
|
4 |
Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted |
|||||
|
a) |
Description of the financial instrument, type of instrument
Identification code |
Ordinary Share
GB00B067JC96 |
||||
|
b) |
Nature of the transaction |
Defined Directors Share Purchase Programme |
||||
|
c) |
Price(s) and volume(s) |
|
||||
|
d) |
Aggregated information – Aggregated volume – Price |
340,136 0.0029 |
||||
|
e) |
Date of the transaction |
02/02/2018 |
||||
|
f) |
Place of the transaction |
XLON, AIM |
||||
About Cadence Minerals:
Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over £25 million vested in key assets globally, Cadence is helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.
Prairie Mining #PDZ – Tier 1 assets & perfect macro. Buy at 30p, target price 90p say Beaufort Securities
Prairie Mining recently published an update describing the coking coal macro in Europe and Poland. The release focused on the European Commission’s 2017 critical materials list, the global lack of new coking coal projects, and the Polish government’s support for new modern coal mines. We also note how the new Polish Prime Minister is pushing the Polish-Chinese business agenda, which will benefit Prairie Mining.
Mateusz Morawiecki recently became Prime Minister and he strongly supports Chinese investment into Poland. Amongst other things, he has recently said “to encourage Chinese companies to invest more capital in our country” and “Poland wants to actively participate in the One Belt, One Road project”.
This agenda fits perfectly with Prairie’s strategy of having China Coal construct Jan Karski using low-cost Chinese debt. And we believe support from the new Polish Prime Minister will ensure Jan Karski reaches the point of being fully permitted and funded. As with all major industrial projects, top level government support is essential.
Prairie Mining shares have underperformed our expectations in 2H17 (the shares increased 50% in 1H17). The lack of buying could be due to negative general media surrounding coal. However, Prairie is a coking coal not thermal coal company and has strong political and European macro support . We anticipate 2018 being a good year for Prairie shares and reiterate our BUY recommendation and 90p price target.
Full research note here Beaufort_PDZ_181217
Tertiary Minerals #TYM placing raises £500,000 to progress projects and acquisition opportunities
Tertiary Minerals plc, the AIM traded company building a strategic position in the fluorspar sector, is pleased to announce that it has raised £500,000 before expenses by way of a placing of 41,666,670 new ordinary shares at 1.2 pence per share by the Company’s joint broker Beaufort Securities Ltd. The Placing Shares will rank pari-passu with all existing ordinary shares in the Company.
The Company is planning to use the funds for project work, to include:
Project Acquisition
- Progressing the evaluation and due diligence of acquisition opportunities – engaged in discussions and technical due diligence for shortlisted projects capable of generating revenue and profits in the near-term, with discussions being reasonably advanced on one particular project
Storuman Fluorspar Project, Sweden
- Progressing the re-assessment process of the Exploitation (Mine) Permit by the Swedish Mining Inspectorate – additional information currently being prepared by the Company for the Swedish Mining Inspectorate in response to stakeholder responses requesting further detail in relation to the impact of proposed operations within the wider surrounding area
MB Fluorspar Project, Nevada, USA
- Progressing the Scoping Study level bench scale metallurgical testwork ongoing at SGS Lakefield in Canada with the aim of producing commercial grade acid-spar
Lassedalen Fluorspar Project, Norway
- Progressing the technical and legal due diligence for the purchase from Hydro of land and mine workings associated with the Company’s fluorspar Mineral Resource
The Placing is being made under existing shareholder authorities. Application will be made to the London Stock Exchange for 41,666,670 ordinary shares of 0.01 pence in Tertiary to be admitted to trading on AIM, and it is expected that Admission will occur on or around 20 December 2017.
In accordance with Financial Conduct Authority’s Disclosure and Transparency Rules, following the issue and Admission, the total issued share capital of the Company with voting rights will be 358,743,603 ordinary shares.
The above figure of 358,743,603 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the DTR.
Richard Clemmey, Managing Director of the Company, commented today: “Strong investor interest has enabled us to complete this placing, the proceeds of which will provide funds to progress with the evaluation and due diligence of acquisition opportunities and the ongoing development of our fluorspar projects.”
|
Enquiries
Tertiary Minerals plc Richard Clemmey, Managing Director Patrick Cheetham, Executive Chairman
|
+44 (0) 1625 838 679 |
|
SP Angel Corporate Finance LLP Nominated Adviser & Joint Broker Ewan Leggat/Lindsay Mair |
+44 (0) 20 3470 0470 |
|
Beaufort Securities Ltd Joint Broker Elliot Hance
|
+44 (0)20 7382 8300 |
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement
Notes to Editors
Tertiary Minerals plc (ticker symbol ‘TYM’) is an AIM-traded mineral exploration and development company building a significant strategic position in the fluorspar sector. Fluorspar is an essential raw material in the chemical, steel and aluminium industries. Tertiary controls two significant Scandinavian projects (Storuman in Sweden and Lassedalen in Norway) and a large deposit of strategic significance in Nevada, USA (MB Project).
CAUTIONARY NOTICE
The news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company’s proposed strategy, plans and objectives or to the expectations or intentions of the Company’s directors. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.
Tertiary Minerals #TYM – Broker Views following landmark agreement with global Commodities trading giant Possehl Erzkontor GmbH & Co.
Tertiary Minerals #TYM
Broker Views following landmark agreement with global Commodities trading giant Possehl Erzkontor GmbH & Co.
SP Angel: Tertiary Minerals* (TYM LN) 0.7p, Mkt Cap £2.2m – Securing fluorspar off take agreements – The MoU and offtake agreement and its link to financing is an important milestone for Tertiary as it provides a route to market for potential future fluorspar production as well as access to finance to help put the projects into production.
Beaufort Securities: This looks like an important relationship for Tertiary, and one which could enable Tertiary to complete a near term acquisition. If the acquisition is good enough quality, we’d expect Possehl to provide the funding, technical and marketing support. That would lead to a transformation for Tertiary. We maintain a Speculative Buy recommendation.
Speculative Buy rating for Andalas Energy & Power (ADL) – Beaufort Securities
Andalas Energy & Power (ADL.L)
Speculative Buy at 0.06p
Target Price: 0.20p
Andalas is a wellhead gas power plant developer focused on the Indonesian island Sumatra. It’s working with Indonesia’s National Oil Company (Pertamina), and a division of state-owned construction company PT PP (Persero). Together they are developing gas power projects where grid infrastructure is short of electricity.
Andalas’ relationship with Pertamina was established in 2016 through a MOU designed to “fast-track commercialisation” of marginal gas fields. Pertamina will be responsible for delivering the gas, Andalas and partners such as PT PP will be responsible for developing the power facility using modular plants and selling power to the national power utility (PLN).
Management is very experienced in Indonesian gas and has a long-standing relationship with Pertamina. This relationship underpins the investment case. Also key is Sumatra’s gas reserves, low electrification and high priority policy to support power projects. Andalas provides unique, low-cost exposure to Indonesia’s fast-growing power sector and we recommend a Speculative Buy.
Beaufort Securities acts as corporate broker to Andalas Energy & Power plc
Andalas Energy and Power (ADL) – Loan Note
Andalas Energy and Power Plc, the AIM traded Indonesian focused energy company (AIM: ADL) has issued a £500,000 zero coupon loan note which will strengthen the Company’s working capital position while it continues to progress the Company’s strategy.
The Loan Note, which has been issued to Sandabel Capital L.P. is secured against the assets of the Company and has a par value of £500,000 and is repayable in cash on or before 28 April 2017. No interest is payable over the term of the Loan Note, which has been issued at a 20% discount to par value. The cash proceeds received from the lender following the issue of the Loan Note are therefore £400,000.
In the event that the Loan Note is not repaid by the Maturity Date, the Loan Note holder has the right to convert into equity at the lower of the prior days closing bid price or a 20% discount to the 10 day VWAP in minimum tranches of £20,000. For every three conversion shares issued under a conversion notice the lender will receive one 18 month warrant with exercise price at a 100% premium to the conversion price.
Dave Whitby, CEO of Andalas, said, “Inclusion of our first project in Indonesia’s national energy plan would be a key value trigger event for Andalas, particularly in the eyes of industry participants and/or potential finance partners who understand the substantial underlying value in our project. Ahead of this, today’s Loan Note strengthens our working capital position, without the issue of equity, during an important period for the Company. In the short term, we expect the first project approval to add considerable value to Andalas and the loan note provides an excellent means to fund the company’s further development to this point. This is an exciting time for Andalas as we look to prove our business model, and in the process become a leading Indonesian focused energy company.”
Appointment of Joint Broker
The securing of the non-dilutive Loan Note for the Company was facilitated by Beaufort Securities Limited, which has been appointed joint broker to the Company. In conjunction with their appointment Beaufort has been granted three tranches of warrants at various premiums to the current share price. Details of the warrants, which expire after a period of five years, are provided below:
- 10,000,000 at 0.20 pence per share;
- 8,000,000 at 0.25 pence;
- 6,666,666 at 0.30 pence
**ENDS**
For further information, please contact:
| David Whitby | Andalas Energy and Power Plc | Tel: +62 21 2783 2316 |
| Sarah Wharry Craig Francis |
Cantor Fitzgerald Europe (Nominated Adviser and Joint Broker) |
Tel: +44 20 7894 7000 |
| Jon Belliss | Beaufort Securities Limited (Joint Broker) |
Tel: +44 20 7382 8415 |
| Frank Buhagiar Susie Geliher |
Beaufort Securities view on Advanced Oncotherapy (AVO)
Beaufort Securities view on Advanced Oncotherapy (AVO).
It always comes as a surprise when the market reacts violently to some news item whose impact was considered already to be priced-in. Yesterday’s announcement told shareholders nothing new. Back in November, AVO detailed the fact that Sinophi was no longer to proceed with the installation of LIGHT technology in the China-Japan Union Hospital of Jilin University in Changchun and First People’s Hospital of Huai’An. Back then, AVO also confirmed that the orders for the two machines remained in place as per its agreement with Sinophi and that they were assessing other sites in the same cities as well as pursuing other framework agreements in China.
Realistically, however, given the bespoke nature of the two original contracts, it was clear that no ‘replacement buyers’ would be found and formal termination was only ever going to be a matter of time. AVO’s management always insisted, however, that the contractual details simply do not permit the originator to ‘walk away’ and that there never was any binding legal agreement with respect to delivery schedules. More to the point, the contracts were composed under English law and both companies have registered offices in the UK. Nevertheless, it would never be in either of the company’s interests to see their argument fought out in the courts, particularly for Sinophi which undertakes very large operations in China where partners would be highly sensitive to any suggestion that it had not looked after its client interests correctly. As such, assuming AVO’s legal counsel has correctly advised it, the dispute will more likely be argued behind closed doors and result in reparations being made to partially compensate AVO for its loss of profit opportunity amounting to, perhaps, a few million US$. Given the pressures on AVO’s balance sheet, any such payment would be welcome although, of course, it would still represent an unfortunate outcome from what initially had appeared to be a quite remarkable business opportunity. In this same respect, Monday’s announcement regarding the possibility of the Group securing non-dilutive financing from a ‘strategic partner’ (which Beaufort believes to be the French giant, Thales Group), also provides some hope for those fearful that AVO will otherwise be forced to undertake further discounted equity placements.
Beaufort Securities – Re-assessing the Tertiary Minerals (TYM) opportunity – Speculative Buy
Strategic fluorspar assets
Tertiary is a fluorspar mine development company with large scale projects in Europe and the U.S. Its two main assets, the MB Project in Nevada and Storuman in Sweden, both have potential to be average to low cost operations with targeted production costs of between $150 and $200/t of acid grade fluorspar. Tertiary’s strategy is to advance both projects during this current down-cycle,so they are construction ready when mine finance conditions improve. Management expects this to also coincide with a shortage of new fluorspar mines and potentially higher fluorspar prices. We have updated our valuation to reflect the current depressed fluorspar price, offset by progress made at MB and Storuman. We calculate a 9.0p target price, 4.5x the current share price.
Critical mineral in Europe, Strategic in the U.S.
Fluorspar is probably the most essential raw material that no one’s heard of. It’s one of 20 raw materials on the European Commission’s critical list, while in the U.S. fluorspar is classified as a Strategic Material. Both regions are in need of a long term, local and reliable source of supply and Tertiary’s two main projects suit this requirement.
MB Project – Nevada
Despite lagging Tertiary’s Storuman project in the mine development process, in our opinion MB is of similar importance and potentially higher value. It is very large scale and located in a stable and mining friendly jurisdiction. Also very important is the U.S’s reliance on imported fluorspar, mainly from Mexico, which makes MB a strategic asset.
Storuman – Exploitation Concession granted
On February 18 2016 Tertiary Minerals was granted a 25 year Mining Concession for Storuman. Although the permitting process is not finished (the next stage is the Environmental Permit) this is a major step forward which adds value to the project and reflects strong support from the Swedish Mining Inspectorate.
Fluorspar prices – positive outlook
Both acid and metallurgical fluorspar prices are at 5 year lows. Although downside risks remain (perhaps from weaker China macro), over the medium to long term the outlook is positive, driven by global demand growth of fluorine containing products. Valuation and recommendation Our Tertiary valuation is based on a sum-of-the-parts approach with values for MB and Storuman, based on conceptual mine models and discounted to reflect funding dilution and other execution risks. We calculate a $26.5m valuation which equates to £19.6m or 9.0p per share, and a BUY recommendation.
Target price – 9p
Full Beaufort Securities research note here Tertiary-Minerals–9-_S