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EARNINGS AND TRADING: UK Oil in Broadford blow; SolGold optimistic

Tue, 19th Mar 2024 18:41

(Alliance News) - The following is a round-up of earnings and trading updates by London-listed companies, issued on Tuesday and not separately reported by Alliance News:

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UK Oil & Gas PLC - oil and gas with assets in UK and Turkey - Planning consent at wholly-owned Broadford Bridge site refused by West Sussex County Council. "Although the envisaged geothermal scheme is entirely peripheral to the company's core petroleum and hydrogen storage activities and is of no current materiality, the company will further consider its position and has six months in which to lodge an appeal should it so decide," UKOG says.

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SolGold PLC - Ecuador-focused copper and gold exploration company - Exploration finds "significant porphyry target" at El Cielto Norte in Blanca-Nieves asset, Ecuador. Says find is "greater in extent than the Alpala system" located to south at Cascabel asset. "Our team is excited about the overall prospect of the Blanca-Nieves project, including the potential for future integration with the Cascabel project. The district scale opportunity reinforces our view that mining has the potential to be a significant, multi-generational sector in Ecuador," SolGold says.

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Marula Mining PLC - Africa-focused mining company - Signs long-term offtake agreement for Blesberg lithium and tantalum mine in South Africa with metals, minerals and energy commodities trading group Fujax UK Ltd. Says relates to spodumene ore and concentrate from Blesberg. First sales begin in May 2024 and then continue on monthly basis to December 31, 2026, with option of further three-year extension.

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Andrada Mining Ltd - technology metals mining company focused on exploration licences in Namibia - Subsidiary Uis Tin Mining enters NAD175 million, around GBP7.3 million, funding deal with Bank Windhoek Ltd. If financing is sealed, it replaces Uis Tin's current banking facilities of NAD111.3 million. "The proceeds from the facilities will be primarily allocated to working capital, strategic growth initiatives, and the retirement of existing facilities. Details on the use of funds are set out below," Andrada says.

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Rockfire Resources PLC - Mineral exploration company with assets in Australia and Greece - Drilling at Molaoi zinc deposit in Greece finds "high-grade zinc beneath the main resource". RockFire says: "Drilling is continuing at Molaoi, with observations of the core recording visible zinc mineralisation in holes drilled deeper than historical drilling, as well as holes being drilled to the north of the resource. The resource is likely to be expanded at depth and along strike once the analyses are completed at the laboratory."

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Savannah Energy PLC - energy company, with projects in Niger and Nigeria - Strikes deals to acquire 49% interest in Stubb Creek, Nigeria. Savannah agrees to separate deals with Sinopec International Petroleum Exploration & Production Corp and Jagal Ventures Ltd, to buy 100% of Sinopec International Petroleum Exploration & Production Co Nigeria Ltd. SIPEC Nigeria owns 49% of Stubb Creek and Savannah affiliate Universal Energy Resources Ltd is 51% owner and operator. Savannah acquires 75% of SIPEC Nigeria from Sinopec International for USD52 million in cash. The remaining 25% will be bought from Jagal for USD7.5 million, also in cash, plus USD2 million in a deferred consideration. Chief Executive Officer Andrew Knott says: "Savannah remains committed to growing our core business in Nigeria through a combination of both value accretive acquisitions and organic projects. This is reflected in this morning's announcement of the SIPEC Acquisition. The base case acquisition has been priced in line with our expected returns criteria, with the identified upside cases (the oil de-bottlenecking and new gas sales to Accugas projects) hoped to add significant value to the Stubb Creek field over time."

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Mortgage Advice Bureau Holdings PLC - mortgage broker - Revenue in 2023 rises 3.8% to GBP239.5 million from GBP230.8 million in 2022. Pretax profit, however, declines 6.8% to GBP16.2 million from GBP17.4 million. Administrative expenses increase 30% to GBP46.7 million from GBP36.0 million. Maintains final dividend at 14.7 pence per share, meaning annual payout also unmoved at 28.1p. "Following the modest improvement in trading towards the end of last year, we have seen a very positive start to 2024 across both purchase and re-financing, including a long-awaited recovery in buy-to-let activity," MAB says. "Although the macroeconomic environment remains difficult to predict, we are increasingly optimistic about the group's prospects for this new financial year, with current trading in line with expectations."

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Gresham House Renewable Energy VCT 1 and Gresham House Renewable Energy VCT 2 PLC - venture capital trusts - Both says their boards and advisers are continuing talks with potential buyers of their remaining solar assets. In July, shareholders for both companies voted to approve a special resolution to adopt a new investment policy. As a result, both companies entered a managed wind-down, looking to realise investments.

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600 Group PLC - West Yorkshire, England-based manufacturer and distributor of machine tools, precision engineered components and industrial laser systems - Says revenue for 11 months to February 29 down 19% on-year at USD22.6 million and gross margin weakens to 34.6%, from 36.6%. 600 is yet to conclude sale of operating businesses, all located in US. US unit remains in default on expired and fully drawn USD5.5 million facility with Bank of America as a result. 600 adds: "Whilst negotiations continue with potential acquirers for the operating businesses, there can be no assurance that a satisfactory deal will be concluded within a reasonable time frame or that the terms of any such transaction would enable the company to repay the facility. As a result, the company is currently considering various alternatives including bankruptcy and/or dissolution under US laws for its US subsidiaries." Shares are due to be cancelled on April 2, six months from date of suspension.

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By Eric Cunha, Alliance News news editor

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