We would love to hear your thoughts about our site and services, please take our survey here.
Vsa morning miner gave Caml a rousing review today.
https://soundcloud.com/user-596578261/5mmm-110124-jan-11-2024-001-riverside?utm_source=clipboard&utm_medium=text&utm_campaign=social_sharing
Excellent update, no surprises all segments ticking along nicely, with the all recent capex projects either completed or entering the end stage, good to see cash heading north again at $57m after the drop recorded in the last update.
Nice to see the company pursuing another exit route for production, financially in good position another well coming online which hopefully see 20k+ for the foreseeable future, if only oil stocks were in favour lol.
I know several of us here are hoping at some point for KMR to be taken out by a bigger fish however today's announcement regarding SHG is a warning be careful what you wish for.
A cash offer has been accepted and recommend by the board at a price is about 32% above the last six months average price and 6% above the current price.
As per usual it's small shareholders who are being shafted again, as they feel the true value of the company is north of the current share price.
That is what is in the back of my mind, I always consider it is a possibility due to having seen this happen before.
If something along those lines happened here I for one would be very disappointed, of course it's possible our board you never recommend a sale on the cheap with a falling share price would they?
Funds less negative as there isn't as much Cu about as they thought personally I beginning to think they dream up these narratives as they go along as it almost changes weekly from gluts to deficits.
https://www.reuters.com/markets/commodities/funds-less-negative-copper-supply-landscape-shifts-andy-home-2023-12-19/
A pleasant lead in to the broker note released today.
Nigeria’s leading independent energy company We believe Seplat has multiple catalysts for value uplift which remain poorly understood despite the share price outperformance this year. Based on new modelling, we provide detailed insights into these catalysts. Most certain are improved operational reliability and the start-up of the ANOH gas project. Completion of the MPNU acquisition and conversion to the new PIA terms could be transformative while enhanced corporate governance and the improved outlook for Nigeria add supportive context. Seplat is on a discount rating to peers and on compelling forward valuation multiples with upside of 32%-91% to our initial NAV estimates, excluding the potential transformational value from the MPNU and PIA uplifts.
Broker note out today.
Upgrade
Kenmare Resources: Capital projects update – WCP A move sanctioned by Board; capex estimate upped
Kenmare Resources Plc (KMR:LON) | 386 -29 (-1.9%) | Mkt Cap: 344.9m
Hannam & Partners
Roger Bell
6 pages
Kenmare Resources (“KMR”) has provided an update on its capital projects, including the transition of Wet Concentrator Plant A (“WCP A”) to the Nataka ore zone, expected to complete by 2026. KMR’s Board has now approved the construction of a new de-sliming circuit and tailings storage facility (“TSF”) required once operations move to Nataka. With a definitive feasibility study (“DFS”) still underway on remaining infrastructure items, the total estimated capex has been updated to US$316-331m,
I hope you are right about a positive update in January to hopefully halt this trend towards a three year low.
HANOI/BEIJING Dec 15 (Reuters) - Fees to process copper concentrate in the Chinese spot market have fallen by a quarter in less than three months to stand below $70 a metric ton on Friday, fanned by worries over tight supply.
The spot copper concentrate treatment charges (TC) in China, as assessed by information provider Shanghai Metals Market (SMM), hit $69.48 a ton, down 25% from $93.23 a ton on Sept. 28.
Such treatment charges, one of the main sources of income for smelters, fall when less copper concentrate is available, and vice versa.
"The expected shortage of copper concentrate may lead to a rapid decline in spot processing fees," SMM said in a note.
Chinese smelters might be unable to buy enough copper concentrate, with some potentially experiencing passive production cuts due to insufficient operating rates, it added.
SMM flipped its copper concentrate market balance forecast to a deficit of 200,000 tons to 300,000 tons for 2024, from a previous projection of a surplus of 70,000 tons.
Consultancy CRU Group also switched its forecast for 2024 to a deficit of 174,000 tons, from a previous 260,000-ton surplus projection.
Supply of copper concentrate next year turned tight after Panama's president ordered the closure of First Quantum's FM.TO Cobre mine. Miner Anglo American AAL.L also cuts its production guidance by 20% for 2024 and by 18% for 2025.
"Panama disruption is the main driver of the fees falling, right at the time Chinese smelters are stockpiling for the new year," said a source at a Chinese smelter.
However, trading volume on the spot concentrate market was tepid, as smelters were reluctant to accept lower fees and traders sought to hold back stocks or offer lower fees, accentuating supply tightness, another smelter source said.
CRU halved its output forecast for Cobre Panama mine to 50,000 tons in the fourth quarter of 2023, from 102,000 tons. The mine's output will drop to zero in the first quarter of 2024, it said, adding that more than half usually goes to China.
The disruption in Panama was a key reason behind the drop in the annual TC benchmark for 2024 to $80 a ton, with smelters accepting the first fee drop in three years on fear of supply tightness.
China's biggest copper smelter, Jiangxi Copper 60362.SS, saw increasing challenges ahead for the country's smelters in securing copper concentrate, a company official said last month.
The FTSE 100 jumped more than 2% while mid-caps soared over 3% as the US Federal Reserve flagged its first rate cut and investors anticipated the Bank of England will keep its finger on the pause button later today.
So a rally across all sectors on the back of the Feds comments regarding possible rate cuts with an election on the horizon is it such a shock?
Even with this news we still can't rise with a high tide.
The market reaction to today's rns is telling, although we all know about about the upcoming move the tone is negative, next year prices are not looking as strong, oh and we have to refinance, just when interest rates are at there peak the fruits of all that wasted cash on buybacks coming home to roost, the share price performance is a reflection of managements performance and not of the sector in which they operate imo.
Chilean state-run copper miner Codelco saw production fall 5.7% year-on-year in October to 128,000 metric tons, the Chilean Copper Commission (Cochilco) said on Tuesday.
Anglo American AAL.L is preparing to freeze spending on growth and widen job cuts in South Africa, going far beyond its initial savings target and paving the way to mothballing some higher-cost platinum mines, sources familiar with the matter said.
Some blocks sold before the huge sale at the end, be interesting to see if any news surfaces later as a catalyst why.
Currently 90% of production comes from the North Sea, so only a small proportion of production from diversified areas out of UK government influence although that will change if they are successful with their developments.
Why on earth would they be looking at SQZ surely anything away from the high tax regime we have here would be more desirable for them, if I was invested there I would be very disappointed if SQZ was mentioned as a possible target.
Your guess is as good as mine Rio, Glencoe, ATYM, farther afield Capstone Copper and Lundin Mining which is Caml like but bigger, the latter two are both Canada listed.
When I look at the charts Cu is holding up well over a 5 year period, Zn is flat and lead is up albeit marginally.
With Caml I like they have cash plus at the end of a capex cycle to cut and paste mining so happy to wait and see what happens.
The project seems to be progressing at pace as Apollo picks up a contract for the fpso.
https://www.offshore-energy.biz/apollo-snaps-up-critical-feed-work-for-north-sea-oil-project/
Goehring and Rozencwajg relook at copper inventories and suggest it is not signalling a recession, and for those investors who moved out of copper now might be an opportunity to reconsider re-entering.
https://blog.gorozen.com/blog/copper-inventory
Https://nairametrics.com/2023/11/17/seplat-to-build-a-250-million-gas-plant-in-sapele-delta-state/#