Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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CONT Seaboard's business complements Weir's existing North American operations, SPM and Mesa, providing significant strategic, operational and financial benefits. The acquisition of Seaboard: Extends Weir's leading position in the production and servicing of a wide range of surface equipment targeted at unconventional drilling and completion markets; Broadens the Group's product offering in conventional and unconventional oil and gas markets; Complements Weir's existing customer base and expanding access to a broad range of exploration and production businesses; Combines the extensive North American sales and service footprints of Seaboard and Weir and leverages Weir's international routes to market to accelerate revenue growth; Builds a platform for growth into adjacent markets not currently served by either business; and Enhances productivity with the application of Weir's lean philosophy in Seaboard's production, supply chain and front end business processes. Cost, operating efficiency and procurement benefits are expected to exceed US$5m by 2014. The consideration is subject to customary post-closing adjustments to net indebtedness and working capital levels at closing. In addition, U$3m in deferred consideration relating to expected tax refunds will be paid six months after the closing of the transaction. Related transaction costs in the region of US$7m are expected to be incurred and will be recognised in 2011. Completion is conditional on US regulatory clearance, and subject to such clearance is expected to take place in December 2011. Following completion of the acquisition, the existing senior management team led by Kelly Joy, CEO, will continue to manage the business and will report to Steve Noon, Divisional Managing Director, Weir Oil and Gas.
Acquisition of Seaboard Holdings Inc for US$675m (£431m1) Weir increases presence in the growing upstream oil and gas markets The Weir Group PLC ("Weir") has agreed to acquire Seaboard Holdings Inc ("Seaboard"), an independent wellhead solutions provider focused on the growing North American unconventional oil and gas drilling and production markets for US$675m (£431m1). The consideration will be payable in cash on completion and funded from new and existing bank facilities. In line with Weir's acquisition criteria, the acquisition is expected to be immediately earnings accretive and post tax returns are expected to exceed Weir's cost of capital by 2014. Based in Houston, Texas, Seaboard manufactures engineered wellhead and pressure control equipment to the oil and natural gas exploration and production industries. Seaboard also provides a range of associated field and support services, including equipment rental into the onshore oil and gas drilling, completion and production markets. The growing shift in North America towards unconventional oil and gas development and the rapid growth of high pressure hydraulic fracturing has increased demand for Seaboard's products and services. Seaboard's range of high-end surface equipment is directly adjacent to Weir's market leading portfolio of frac pumps and other well completion equipment with a business model closely aligned to Weir's core competencies in highly engineered products used in harsh environments. For the year to 31 December 2011, Seaboard is forecast to achieve proforma revenues and EBITDA2 of US$216m and US$58m respectively3. The acquisition of Seaboard is consistent with Weir's strategy of extending its upstream market presence in aligned markets with positive fundamentals. The global surface equipment market is expected to benefit from higher drilling activity and increasing well complexity, leading to growing demand for wellhead and pressure control products.
http://www.investegate.co.uk/Article.aspx?id=20111123070035H5982
WEIR Group, the Scottish engineering giant, will end the year with a record order book following strong demand for its products from the mining and oil industries The Glasgow-headquartered pumps and valves maker said the third quarter produced an unprecedented level of new orders. But the company slumped to the bottom of the FTSE 100 fallers’ board following the announcement, with shares down 7 per cent in early trading. They closed 71p, or 3.7 per cent, lower at 1,860p. Analysts were disappointed with the flat margins and said the firm’s growing order book for 2012 looked to be already priced in to the shares which have risen almost 40 per cent since the beginning of October. Oliver Wynne-James, an analyst at Panmure Gordon, said: “What the market didn’t like is the flat margins in the third quarter and the flat margin guidance for the rest of the year.” He said the minerals division suffered a lower margin because it was selling more original equipment as opposed to spares. But Jonathan Jackson, head of equities at Killik & Co, said the long-term outlook for the business remained positive, driven by the continued industrialisation of emerging markets and growing demand for energy and commodities. The company said the positive trends continued into the current quarter, swelling revenues and profits above the levels seen last year and in the first half of 2011. It said: “Although we remain vigilant given current macro-economic uncertainty, this performance underpins our confidence in delivering a strong set of results for 2011, in line with our expectations, and starting 2012 with a record order book.” But it said margins across the group had remained static, and its shares fell as investors had been hoping for an improvement. Chief executive Keith Cochrane re-iterated that Weir is on the look out for acquisitions. He has a £600 million war chest but no targets currently in his sights. “We’re always looking at a long list of opportunities at any point in time. I can’t say there’s anything imminent right now,” he said. Weir would be keen to add to its offering in both its mining and oil and gas businesses, he said, suggesting that the firm may look to increase the breadth of its involvement in fracking, a relatively new and controversial way of extracting oil and gas from rocks forcing sand and chemicals into the ground. The booming shale gas industry in North America, which uses Weir’s heavy-duty pumps for fracking, helped the Scottish company grow total orders by 27 per cent in the three months to September. Orders relating to oil and gas production were 39 per cent higher in the third quarter compared to the same period last year.
The Independent’s Sharewatch column assesses Weir, the engineering company which makes equipment for extracting oil and gas. It had a bad day on the markets yesterday, closing 2% lower than Friday. The Independent argues this fall reflects market perception that commodity prices have plateaued which would naturally restrict Weir’s earnings potential. However, the Indy is in full sticking-its-neck-out mode and suggests that the long term prospects for commodities is still rosy especially for extraction techniques like hydraulic fracturing, or fracking, in which Weir has a particular speciality. It is for that reason that the Indy says Weir is a buy.
Why do Lse shown trades differ to those on interactive investor and digital look. They have sells when others have buys and vice versa for the same volume etc. It is a regular occurrence and frustrating........who is right?
Looks like an inverted head and shoulders. If it breaks the reversal pattern neckline can we expect as nice continued rise?
Decent recovery so far from the sub 1400
Berenberg initiates buy on Weir Group, target price 2215p.
1550ish has been a good support level here but it now seems broken - (1509) as I type - will watch this with interest for a turnaround when the market mood changes
Monitor the dow first if it snegative let the negative trend continue, support at around 1750. JMO
1830ish then I will be in....JMO
looks good for a gap up tomorrow at these levels......JMO
Barclays Capital upgrades Weir Group from underweight to overweight, target price increased from 1860p to 2350p
The share price slump of almost a quarter in engineering group Weir shares at the height of recent doom was completely overdone. The shares are trading on a December 2011 earnings multiple of 14, falling to 12.5 next year. The prospective yield is 1.8%, but this is a story about growth. Buy, says the Telegraph.
Shares in Weir Group fall 7.5 percent as investors continue to shy away from equities in a flight from risk, as sovereign debt concerns in the U.S. and Europe threaten to stifle global growth. Traders said Weir's shares were also being impacted by a downgrade from Morgan Stanley, which cut its rating on the capital goods firm to "equal-weight" from "overweight" on valuation grounds. Citing the note, traders say Morgan Stanley sees, in the near-term, the stock as effectively 'up with events', while peer companies in similar end-markets have become more circumspect in recent weeks. Weir's shares have fallen more than 27 percent in the last ten trading days, with Citigroup saying the market is pricing in a 27 percent earnings per share downgrade to its 2012 forecasts for the engineering sector. Singer Capital Markets, meanwhile, says stocks in the capital goods sector are suffering from their liquidity. "When funds find themselves forced to sell positions in panicked markets, the most liquid stocks bear the brunt of selling simply because they can be sold."
Weir Group Slumps On DowngradeAugust 08 2011 - British Investment Digest Engineering firm Weir Group was the worst performer on the FTSE100 index on Monday following a downgrade from broker Morgan Stanley. shares in Weir Group fell by as much as, 7.7% and were down 7.3% to 1604p at 1155BST after Morgan Stanley cut its rating to equalweight from overweight. The broker said order intake at the group has been “outstanding,” but that margins are falling and some of Weir’s peers have become more circumspect in the last few weeks. Weir Group was the hardest hit as the sell-off in global equities resumed ahead of the US market open. Resource stocks were the hardest hit as S&P downgraded US debt, raising the prospect of the country slipping into a double-dip recession. Petrofac, Kazakhmys and Xstrata all fell by as much as 6% as oil and copper prices slumped.
Goldman Sachs retains buy on Weir Group, target price raised from 3200p to 3300p
Cant complain about these results.
Keith Cochrane, Chief Executive, commented: "The Weir Group has delivered another positive set of results, with revenue and profit growth and record orders. Strong order trends in our Minerals division, as well as an excellent performance from our upstream oil and gas operations demonstrate our ability to serve market needs by executing effectively on our strategic growth agenda. The Group will continue to invest to grow ahead of our end markets and we now expect profits for the full year to be somewhat ahead of our previous expectations."
HIGHLIGHTS § Original equipment input up 67%, aftermarket input up 25% § Strong growth across the minerals and upstream oil and gas markets § Record upstream Oil & Gas input of US$531m and revenues of US$422m § Pre-tax profits up 24% to £178m after one-off costs of £7m § 20% increase in dividend to 7.2p § US$75m investment plan to further expand upstream oil and gas capacity § Sale of Cathcart, Glasgow site with net proceeds of £25m in the second half
http://www.investegate.co.uk/Article.aspx?id=201108020700095241L
UBS reiterates buy Weir Group, target price raised from 2200p to 2420p.
The process of extracting oil and natural gas from shale is a controversial one because of claimed environmental damage. This requires the use of advanced pumps and other equipment, and the world leader in providing these is Weir Group through its Texas-based SPM business, which has about 50 to 60 per cent of the pumps market and 30 per cent of the total equipment needed. The shares are on a hefty 15-plus times future earnings, but the SPM story has further to go, says the Times.
Engineering firm Weir Group (WEIR) has agreed to acquire a majority interest in a South Korean valves business formerly operated by HIM Tech Co. Located in Ansan, near Seoul, the business designs and manufactures control and choke valves for severe service power generation and oil & gas applications. In the year to 31th December 2010, HIM Tech's valves business recorded sales of $10.5 million. Weir shares gained 23.56p to close at 2,078p.