St Brides Partners Weekly Brief, Saturday 5th September 2020

With all that has happened this year so far, we may all feel like we are in need a bit of an escape. But none have taken it as far as famed illusionist David Blaine, who this week performed his Up-style stunt ‘Ascension’ over the Arizona desert.

A part childhood dream come true and part terrifying daredevilry, he rose to nearly 25,000 feet by holding on to around 50 helium balloons – although air travel might be difficult at the moment, hopefully, this won’t become a new alternative! After half an hour in the sky, he made it back down to earth, a feeling that is perhaps similar to that of the abrupt start of September this week.

With children heading back to school for the new academic year, workers starting to trickle back to the real-life office (St Brides included!), and already enough of a chill in the air that has us digging up a warm scarf from the back of the wardrobe, autumn can be felt just around the corner.

But, despite what the rain, overcast weather, and busy schedules may tell you, summer still has a couple of weeks left to make the most of. And perhaps we should all take a page out of David Blaine’s book and keep our spirits flying high – albeit in a less perilous way!

Client News

Kodal Minerals Plc (AIM: KOD) has signed a Memorandum of Understanding with Sinohydro Corporation Limited, a subsidiary of PowerChina and a specialist engineering, infrastructure, power developer and construction contractor. Sinohydro and Kodal will be working together to develop the Bougouni Project, focusing on the key objectives of geology, engineering, logistics and its corporate aspects. Working together with Sinohydro’s technical team on site to maximise the benefits of the MoU, Kodal looks towards delivering a third party assessment of the feasibility study, a review of the development schedule, and a review and advancement of the financing opportunities for Bougouni. Sinohydro’s strong track record of developing and working on projects in Mali will provide invaluable help to Kodal with finalising the design, the financing and the construction process of the project in an efficient and cost effective way. In light of this positive progress being made by the company Kodal has experienced a 180% price rise, making it one of the top risers on the market this week.

Contango Holdings Plc (LSE: CGO) announced an update on the Lubu Coalfield Project in Zimbabwe as well as further information on its growth strategy. The commissioning of Lubu remains on schedule for Q4 2020, pursuant of the finalisation of the formal negotiations of the previously announced LOIs for 32,000 tonnes per month coal off-take agreements, which are progressing well and are expected to be completed this quarter. Additionally, Contango continues to pursue its growth strategy of acquiring additional de-risked assets with clear paths to cash flow, targeting assets with near term cash flow, low capital commitments and short payback periods. Particularly a number of gold opportunities have been identified and are being evaluated by the board, which could be monetised in the near-term and enable a staged development and expansion to minimise dilution and offer significant value to shareholders.

BlueRock Diamonds Plc (AIM: BRD) announced the valuation of a 12.12 carat diamond recovered in July 2020 at a price of $104,000, making it the fifth diamond recovered with a value of above $100,000. With BlueRock operating in the pure Kimberlite area of the Kareevlei Diamond Mine again following the development of KV Main Pit, an increase in incidences of higher value diamonds are expected. BlueRock’s diamonds remain attractive to buyers despite an uncertain market, demonstrated by this week’s private sale of 3,805 carats at an average price of $330 per carat for an aggregate consideration of $1,255,000. This price is above the internal budget and a 14% increase over the price achieved in June 2020 in a previously announced private sale. Furthermore, 41,000 tonnes of ore were processed from the Main Pit at Kareevlei in August 2020 and the diamonds recovered had an improved average grade of 5.1 cpht. This has significantly improved when compared to the average grades of 3.0 cpht recovered in H1 2020, and well above the initial target of 4.0 cpht.

Bluejay Mining Plc (AIM: JAY) received the Government of Greenland’s decision to approve two major amendments to their mineral licencing standard terms and conditions, including the postponement of the transferred outstanding annual exploration obligations for all mineral exploration licences by one year; and extension of the licence period for all mineral exploration licences by one year. This demonstrates Greenland’s support for the minerals sector and follows the previous decision to set exploration obligations for 2020 to zero. Therefore, Bluejay’s various expenditure credits for various licences will be carried forward into 2021. Additionally, Bluejay has filed an application with FINRA for its ordinary share capital to trade on the OTC Market’s OTCQB trading platform in the USA. This is following on from a material increase in interest shown in its portfolio by prospective investors based in the USA and subsequent comments made by President Donald Trump on the importance of Greenland’s resources to Western industry. Lastly, the Public Consultation process for the Dundas Ilmenite Project closed on 2 September 2020 and together with the Government of Greenland, Bluejay will continue the composition of the ‘White Book’ and Impact Benefit Agreement to their completion.

Ferro-Alloy Resources Limited (LSE: FAR) has developed technology for the production of electrolyte directly from ammonium metavanadate for vanadium flow batteries and has applied for its patent. This cuts out the cost of conversion of AMV to vanadium pentoxide, which is how electrolyte is usually made, allowing FAR to enter the market with a cost advantage over traditional processes. VFBs are used to store energy from intermittent green sources, with significant advantages over lithium-ion battery technologies, and the market is expected to grow rapidly due to the continued rise in demand for renewable energy. FAR aims to become a regional supplier of electrolyte and is a significant new producer that can provide the huge quantities of vanadium that will be needed without driving up the industry’s price level. In addition, FAR raised £500,000 equity this week.

Keras Resources Plc (AIM: KRS) announced an update on the progress at the Diamond Creek organic phosphate mine in Utah, USA, in which Keras has a controlling 51% interest through the acquisition of Falcon Isle Holdings LLC. During the first month of the acquisition, the MSHA has completed a two-day inspection and audit successfully with no safety concerns or violations issued, and significant progress on infrastructure has been made with access roads fully upgraded and lay-down area for ROM ore to be completed by 7 September. The first high-grade DSO organic phosphate commercial product has been mined, toll-processed and dispatched to customers. Additional progress has been made at the Nayega Manganese Mine in Togo, in which Keras has a 85% interest through the Societe Generale de Mines SA, who holds the permit. Togo has been reopened to international business post lockdown, with plans to recommence the exploration activities within the next week and a management trip has been planned for 10 September.

Katoro Gold Plc (AIM: KAT) provided an update on the Blyvoor gold tailings project following the successful site visit in July 2020 and a significant increase in momentum across all project activities and work streams. The JV management and technical team have concluded all final planning and preparations for the resource upgrade programme at TSF6 and 7 and the drilling programme is currently underway and on schedule. This is a key activity in the resource upgrade programme and forms part of the technical work required to complete the Definitive Feasibility Study. There has also been good progress with the various funding initiatives and the company is currently engaged in very focused discussions with a selected number of potential funders on the basis of formal proposals that have been received.

Empire Metals Limited (AIM: EEE) has commenced field work at the high-grade Eclipse gold mining licence in Australia, initially with systemic soil sampling and geochemistry. 490 samples are planned over the north-eastern and south-western areas of the licence, testing the areas adjacent to existing geochemistry results. Historical production records, together with recent geophysics and drilling have already provided Empire with a robust understanding of the gold mineralisation and potential for high-grade resource development, so the company has high expectations for the results to come during the option period.

New client Scotgold Resources Limited (AIM: SGZ) provided an update on its Cononish Gold and Silver project.  With underground development and plant construction activities progressing well, management expects first pour at what will be Scotland’s first ever commercial gold mine to take place by 30 November 2020, which happens to be St Andrew’s Day!   Additionally, Scotgold has taken steps to further expand its Geoscience team to unlock more of the potential that has been identified at Cononish as well as at its Grampian exploration project as management looks to build a highly profitable, low risk gold mining company focused in Scotland.

You may have missed…

CEO of Contango Holdings Plc (LSE: CGO) gave an interview with StockBox, providing an overview of the Lubu Coalfield project and the path to near term production and cashflow.

In the news this week…

Apple shares rose 4% on Tuesday, valuing it at more than the entire FTSE 100.

The effect remote work is having on the hidden trillion-dollar office economy.

Zoom shares hit a record high on Monday after announcing their earnings for the second quarter of 2020.

Pope Francis held the Vatican’s first public audience since March after pausing due to lockdown.

Construction begins today on the HS2 railway link between London, Birmingham, Manchester and Leeds.

Two public toilets have been given Grade II listed status for historical significance as the first women’s public toilets opened in 1899 and 1904.

The Treasury finds that restaurants have claimed over 100 million meals under the Eat Out to Help Out scheme over August.

Wotsit measuring 10.66m has broken the world record for longest puffed corn snack.

Scientists have discovered near identical genetics to the previously thought to be extinct New Guinea Singing dogs in another island dog pack.

Watch the full video of David Blaine’s Ascension.


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