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Good spot Daniel! Interesting to note the share price which had been making small gains through this year jumped on and in the days following the release of Q2 results. It's currently 15-20% above the level it was trading at.

Link to the update for anyone interested

https://www.lse.co.uk/rns/THX/q2-2023-operating-update-3vem6amilv811te.html

Their gold recovery of 23,078oz was 'in line with expectations' and 'the planned step-up in production' was met with 'Mining forecast to remain at this level for the next three quarters'. No positive surprises and yet there was a surge in interested buyers which have held onto stock rather than cashed in. Personally I don't believe for one second the market has priced in all of the financial information, there is no consensus over figures and clearly the market in this case had failed to price in the company achieving Q2 guidance. There was nothing in that update that was particularly extraordinary.

Odey's fire sale has unfortunately resulted in an overhang that has distorted the gap between market value and the relative value comparative to peers based on sector norms, financial expectations etc.

Net debt was $19.6m ($29.1m debt vs $10m cash and gold) at the end of Q1 with a further $1.5m working capital available. The latest presentation quotes Liberum research forecasting Shanta to turn net cash positive within 6 months.

https://www.shantagold.com/_resources/Singida%20Five-Year%20Plan%20Presentation.pdf

Assuming first quarter costs at Singida come in 20% above the top end 9-month AISC guidance of $1400 accounting for inevitable higher costs per ounce as operations ramped up, Singida should still have ended this quarter cash-flow positive, particularly as certain costs such a royalty payments won't be due this quarter.

Shanta were pumping $6-8 million each quarter into Singida until last quarter so we should see a fairly sizeable reduction in the amount of net debt alongside growth in group revenue and profitability. All the metrics moving in the right direction and certainly paving the way towards dividend increases in the not too distant future.

Q2 will be Shanta’s first quarter as a two-mine producer (and no longer funding the capital of it's second mine through the cash generation of the first.

https://www.shantagold.com/_resources/Singida%20Five-Year%20Plan%20Presentation.pdf

Oh I don't know where to begin. Such irony calling others novices when just eight months ago you were struggling to read a balance sheet! It is a crying shame you did not learn a few lessons in decorum while you were away.

You were completely wrong on liquidity and equity raise claims, wrong about poor operational performance and teething problems at Singida, wrong about the price action also. The share price only began to slide last month from 11p+ level so unless you knew Odey were liquidating an 8% stake in the company then I fail to see how you called any of this right.

Latest release indicates Steppe Cement have to postpone dividends and will make a decision later this year as to whether they can afford a 2-3 pence dividend. At best then they have slashed the dividend and this comes alongside a rather tepid set of results IMO. The primary reason people hold Steppe is for the generous dividend payments it was known for which are now reduced or removed entirely. No reason to hold when this continues to lose market share against a backdrop of high inflation and possible recession.

Too early to know what the combined production will be in Q3 but taking Shanta as a recent example it took them less than one quarter to ramp up to full production at their Singida mine. We could safely say production will jump to around 40koz give or take 5% either side of that as they are aiming for more than 50koz by the beginning of Q4 and in each quarter thereafter.

SRT Marine Systems (LON:SRT) – Sensible £3.95m Fund Raise To Boost Working Capital

This £97m global provider of integrated maritime surveillance systems and digital navigation safety transceivers has announced a £3.95m capital raise @ 50p a share – which looks totally sensible to me.

The raise price was at 50p, a near 14% discount to the closing price last Thursday night.

The company intends to use the net proceeds of the Fundraising to facilitate accelerated growth through provision of working capital for the company’s systems and transceivers divisions.

CEO Simon Tucker commented that:

“In the last few years, SRT has transformed its prospects as demonstrated by a 265% increase in revenues to £30m last year, a current forward contract order book of £160m, and a pipeline of new system contract prospects which has grown to £1.4bn from which we have also recently announced a further award notification. This fund raise is timed to support this acceleration of our business.”

Analysts Kimberley Carstens and Michael Hill at finnCap have a price objective of 100p out on the shares, almost double the current market price.

The analysts consider that with the profitability expected this year and next, there is plenty of room for upgrades as a track record continues to be established.

They are expecting the group to more than double its sales in this year to end March 2024 at £70.9m (£30.0m est), while adjusted pre-tax profits will explode from an estimated £1m loss in the 2023 year to an excellent £7.3m profit this year.

Looking further ahead for the 2025 year, £104.8m of sales are estimated by finnCap, the group’s broker, with profits leaping to £11.8m, taking earnings up to 6.2p.

The group’s customers include national security and safety agencies such as Coast Guards and national fishery agencies as well as individual vessel owners.

Its products and systems provide customers with enhanced maritime domain awareness in order to solve problems that include maritime and border security, illegal fishing, marine environment protection and navigation safety.

These shares at 51.20p, after the funding, are still very cheap and are certainly not for selling yet – we have had a good ride so far and there is obviously so much more to come.

Filtronic (LON:FTC) – Firm Hold For Further Recovery

Last Friday morning’s Trading Update from this high-tech products supplier showed some positivity.

The company, which is involved in designing and manufacturing for the aerospace, defence, telecoms and critical communications markets, informed shareholders that its supply chain issues have started to ease, while its opportunity pipeline is still building.

CEO Richard Gibbs stated that:

“Throughout the year our primary markets have remained robust, and we enter the new financial year with a strong order book, a significant number of promising development programmes and opportunity pipeline that has doubled during the course of the last year.

Notwithstanding the disruptions caused by shortages of electronic components, we believe that we are continuing to make the right investments in the business to capitalise on the exciting near-term opportunities in our core markets.

We have been encouraged by the closing of two new telecoms infrastructure contracts early in our new trading year and will look to build further momentum as the year progresses.”

Analysts Michael Hill and Kimberley Carstens at finnCap now have estimates for the year to end May this year, showing a slight dip in revenues to £16.3m (£17.1m) while it might only show a £0.1m adjusted pre-tax profit against £1.5m previously.

For the current year they look for a partial recovery to £0.8m profits from £20.5m sales.

The brokers have a price objective set on the group’s shares at 20p.

We should get a bigger picture of the group’s progress on Tuesday 1st August when the group reports its finals.

The group’s shares, which have been up to 17.34p in the last year, are currently 14.50p valuing the group at £31.3m.

The shares are a firm hold for further recovery.

From what I can see trading is not dead, the market is simply risk averse right now owing to near double-digit inflation and the economic outlook. This is affecting many similar resource based stocks. The base rate is expected to go above 5% in the coming month(s) which is causing a major shift in investment strategies. Investors are simply chasing better returns on their investments and there are much safer companies paying 10%+ dividends right now.

That being said you could argue trading looked 'dead' in Resolute Mining in the second half of 2022 prior to it's financial reorganisation raising money to clear overhanging debt. The share price jumped from around 9p to 28p over 5 months so it's not like investors won't touch these producers, they could be waiting for an appropriate time or certain catalyst. Cash build up, net debt clearing and dividend hikes are all likely but not confirmed so I'd expect trading to pick up once the Half Year results are out and providing there is a noticeable difference with Singida having been in production and very little capex required in Q2.

PhatStyle - Shanta is already producing at a rate equivalent to 100koz / annum but as with HUM the production numbers are forecasts based on current run rate and have not been proven (yet). Certainly with Shanta the market is awaiting actual reductions in debt with realised increases in cash-flow and that will take months as bonkers suggested earlier. This is the right time to buy though, both SHG and HUM will experience the rerate RSG went through earlier in the year after it cleared it's overhanging debts

Forecasted Earnings in 12 months are $700m placing it on a Forward PE Ratio of 3.7x which would make it cheaper than the likes of Serica and Ithaca!

More than 5% wiped off the market value since an Egyptian security officer went on a rampage killing 3 Israelis. News outlets suggest it is "one of the most serious border incidents since Egypt became the first Arab country to sign a peace treaty with Israel in 1979".

It does appear markets are pricing in the possibility of retaliatory actions IMO although not escalatory and I guess the risk premium here has increased temporarily as a result.

ENOG still look cheap on an earning comparative and yield more than 8% with quarterly dividends expected to increase in the coming years. Not without risks even at today's price

I'm not convinced that's the immediate concern of markets but it may be contributing to sentiment for sure. Thessues relating to Covid handling over the past 3 years and even recent events with the sudden change in policy breeds uncertainty. Risk of lockdowns, restrictions or adverse health implications to factory workers, no matter how low, is still an ongoing concern for markets, given the lack of transparency. The management of the company may also leave something to be desired as they slashed the dividend to bring down debt fasters.

https://time.com/6283257/china-xbb-covid-outbreak/

The global economy and everyday folks could only wish for sub $50 oil once more but when have us peasants ever been rewarded for our patience and hard work? More likely oil will remain range-bound and my 8% dividend will turn inflation beating in the coming months. Still, this won't make up for recent losses... A good price to enter and hold.

£64m (46p p/share) for a stake in the world leader in media investment analysis.

More than 600 media specialists operating from 18 offices - covering 80% of global advertising market, 70+ of world’s top 100 advertisers use Ebiquity as independent media advisor.

Could do £10-11m profit this year and £13-14m in 2024

Trading Update (H1 2023) late July

Only follow Hunting at the moment but considering entry if sentiment has now turned. It has looked oversold for a while and perhaps today's upgrade will reignite demand here.

"This order, again, breaks Hunting's record for the largest single order received for the Group's OCTG and premium connections and supports management's belief that international market sentiment remains extremely strong as governments and countries address the challenges of energy security, the development of domestic supply and post-COVID economic recovery."

"Hunting's successful run of significant OCTG and Subsea orders since H2 2022 demonstrates that our technology and global footprint is well positioned to deliver significant growth in the medium term. US market activity remains stable and with the orders received for China, Guyana, Brazil and now India, Hunting continues to see a strong growth profile given our standing and recognition with major energy companies, coupled with the strong international market sentiment being reported in many regions."

Well no surprise there are a couple of feckless posters on here posting gibberish and looking to squeeze the last of the weak holders out.

Pan African's production guidance for this year has only been reduced by 12% (approx) from what was previously record high guidance levels. Now guidance is set just below what was produced in 2020 (179,457oz) which is hardly the end of the world especially with gold sales in Rand achieving the highest prices on record!

2024 production forecasts of 178,000oz to 190,000oz are conservative according to the latest interview with much of the uncertainty coming from Eskom, which is why the company is heavily investing in renewable tech. At Elikhulu their solar photovoltaic renewable energy plant is already providing electricity cost savings of $145,000/month. AISC at the mine were $947/oz (H1 FY22: $937/oz) – one of the lowest cost gold producers in South Africa.

Group production costs revised up to $1,350/oz are being skewed by lower group production but also the Barberton Sheba and Consort Mines which are temporarily higher than the prevailing gold price. These are being addressed as indicated in the last presentation so I wouldn't expect AISC to remain this high in 2024.

For the income investors among us the dividend is not currently at risk. Based on the share price today it's offering a not too shabby 7-8% yield.

The debt on the balance sheet is set to fall away very quickly from here! Stellar update, ahead of schedule, hot commissioning into early commercial production next quarter.

Statement by Stuart McDonald, President and CEO of Taseko;

“An average realized copper price of US$4.02 per pound in the first quarter helped to drive our strong financial performance. Production in the first quarter was 25 million pounds of copper and 234 thousand pounds of molybdenum. Copper head grades for the period were on plan, averaging 0.22%, but production was slightly below plan due to unexpected mill downtime and operational issues with the primary crushers.

Mining advanced deeper into the Gibraltar pit which is the sole source of mill feed this year, and waste stripping ramped up in the new Connector pit. Initial tons of oxide ore were also mined from the Connector pit and have been placed on leach pads for future production when the Gibraltar SX/EW plant restarts. We have decided to defer the in-pit crusher move until the spring of 2024, to coincide with planned work on SAG mill #1 to minimize concentrator downtime.

In the first quarter, we increased our effective interest in Gibraltar to 87.5%, after acquiring a 12.5% stake from one of our joint venture partners. The transaction closed in mid-March and provides immediate 17% growth in our attributable copper production. Additionally, the five-year deferred payment structure allows Taseko to focus our financial resources on the construction of the commercial facility at Florence.

In March, we filed a new technical report** for the Florence Copper project. The report includes updated capital cost estimates based on detailed engineering and recent contractor and vendor quotations. Operating and sustaining capital costs have also been updated, and refinements have been made to the operating models based on the Production Test Facility (“PTF”) results. The project has been significantly de-risked in recent years and has an after-tax Net Present Value (8%) of US$930 million using a long-term copper price of US$3.75 per pound. The EPA permitting process continues to advance and we expect a favourable outcome in the coming months. We are ready to start construction of the commercial production facility as soon as the final Underground Injection Control permit is issued.

Considering global economic uncertainties, copper markets remain remarkably stable and continue to support a healthy price of about US$3.85 per pound. Demand for our product remains strong and the long-term supply / demand fundamentals appear to be favourable. In the short-term, we continue to maintain our price protection strategy, which provides a minimum copper price of US$3.75 per pound for most of Gibraltar’s production for the balance of 2023. Our original production guidance of 115 million pounds (+/-5%) for 2023 remains unchanged.

https://www.tasekomines.com/assets/docs/Q1-2023-Earnings%20Release.pdf

Taseko Announces At-The-Market Offering

May 3, 2023 – Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) (“Taseko” or the “Company”) announces that it has entered into an equity distribution agreement dated May 3, 2023 (the “Equity Distribution Agreement”) providing for an at-the-market equity offering program (“ATM”) with National Bank Financial, Canaccord Genuity and Stifel GMP and their respective United States affiliates (collectively, the “Agents”).

The ATM will allow Taseko, through the Agents, to offer and sell from time to time in Canada and the United States, through the facilities of the Toronto Stock Exchange (“TSX”) and the NYSE American LLC (“NYSE American”) such number of common shares as would have an aggregate offering price of up to US$50 million.

Sales of the common shares, if any, will be made in transactions that are deemed to be “at-the-market distributions” as defined in National Instrument 44-102 – Shelf Distributions and an “at-the-market offering” as defined in Rule 415 under the United States Securities Act of 1933, as amended, including sales made by the Agents directly on the TSX, the NYSE American or any other trading market for common shares in Canada, the United States or as otherwise agreed between the Agents and the Company. The Company has applied to the TSX and NYSE American for listing of the common shares that may be issued under the ATM and sales will be subject to the receipt of the required stock exchange approvals.

The common shares sold under the ATM will also be admitted to trading on the London Stock Exchange.

The ATM will be effective until May 26, 2025 unless terminated before such date in accordance with the Equity Distribution Agreement. The timing and extent of the use of the ATM will be at the discretion of the Company. Accordingly, total gross proceeds from sales made under the ATM, if any, could be significantly less than US$50 million.

The Company intends to use any proceeds from the ATM for its general corporate purposes, which may include (i) capital expenditures for the Company’s Gibraltar mine, (ii) expenses associated with the development of the Company’s Florence Copper project, (iii) expenditures on Taseko’s other projects, and (iv) general corporate and working capital purposes.

Lots of tiddly dividends beginning to add up now. At 133p the yield must be around 7-8% now?