They shall not grow old, as we that are left grow old. Age shall not weary them, not the years condemn. At the going down of the sun and in the morning, we will remember them. The 11th of November is one of the more solemn days in our history, lest we forget.
Before we start our run weekly rundown this week, a link for Share Talk’s up and coming Investor Seminar, Midlands, England.UK.
1st December 2017
Here is our rundown of selected news stories from the past week…
Red Emperor Resources NL (ASX,AIM:RMP)
The curious tale of Red Emperor Resources NL took another twist this week as they were suspended from trading on the ASX due to “not having sufficient operations to warrant the continued quotation of its securities in accordance with ASX Listing Rule 12.1”. In plain English… the powers at be don’t regard the BoD at RMP to be doing enough for shareholders to warrant keeping their ASX status. Whilst some shareholders appear to agree the company has been performing exceptionally poorly in the past… a corner may about to be turned. On the 31 October the company released their latest quarterlies and within that announcement stated they had already “signed a binding Heads of Agreement (HoA) with an experienced Oil & Gas exploration firm to identify a number of strategic leases in California, prospective for oil & gas, with a view to acquiring those leases. While the specific location of the areas of interest will remain confidential until some or all of the leases have been acquired, the Company can advise that in return for funding 100% of the lease acquisition costs, as well as the acquisition and reprocessing of relevant seismic data, Red Emperor will earn a 60% interest in the newly established Joint Venture and any subsequent leases acquired. The total budget, inclusive of Landman fees, for the proposed acquisition is USD640,000, after which RMP will be responsible for its 60% equity interest. The Company looks forward to updating shareholders on this exciting new venture over the coming weeks”. All that said and done, and the company has just shy of £6M cash in the bank with an Mcap of just under £5M. You do the maths… New shareholders were afforded an entry price of 1.15p earlier this week. It remains to be seen whether or not that price will be long gone in the coming weeks or whether further disappointment is to come. If I was a betting man (and I’m not, mostly) then I believe the coming weeks are going to be very interesting for new entrants to the RMP story.
Greatland Gold Plc (AIM:GGP)
It’s impossible to ignore Greatland Gold at the moment. This week saw the announcement that Gervaise Heddle and his team had acquired 100% of the Black Hills Gold project adjacent to Haverion in the proximity of Paterson, and not too far from Newcrest’s highly prospective Telfer mine. Hear Gervaise talk more about that here. The interest thing about the acquisition we picked up on was that only AUD $25,000 cash changed hands with the rest of the transaction (AUD $200,000) being made up of GGP shares. Fast forward a day and GGP announced ground gravity surveys had commenced at the ‘Scallywag’ target in Paterson with a view to starting a drilling campaign early 2018. Significant volumes of warrant conversions has left GGP with over £4M in the bank and they continue to spend this (in my opinion) wisely. All that and I haven’t even mentioned Ernest Giles and Newmont yet! Anyone who has been following the GGP story already knows that the 6 month agreement with Newmont Exploration Pty Ltd ends Thursday 16 November. We spoke with Gervaise Heddle on the day that news was announced 6 months ago. Listen back to what he had to say here. We look forward to seeing the results from Newmont’s activities as and when they are announced. Not forgetting, GGP’s AGM is going to be held in London on Thursday 30 November so shareholders will have a chance to meet the management team later this month.
Ascent Resources Plc (AIM:AST)
Gas flow means cash flow was the headline on London South East’s interview with CEO Colin Hutchinson as Ascent Resources finally delivered the news last week that investors had been waiting to hear for months and years dependent on when you became a shareholder. Fresh from the ink drying on the deal with INA the taps had been turned on from within Slovenia and gas could be exported across the border to Croatia. All this just after a £1.5M discounted placing took place via Darwin’s Primary Bid outfit and subsequent announcement of the award of options to management at AST left a bitter taste in the mouth for many shareholders as once the initial honeymoon period ended (after just a day) the SP began to fall back below it’s price from the previous week, closing the week out at 1.925p. Many shareholders just aren’t buying the fact the company said they were going to run out of cash a matter of days before the INA agreement was signed and are growing increasingly frustrated with what they perceive to be overtly negative influence from Chairman Colin Carver and his related business entities. A shareholder action group has since been formed with a view to gaining more influence on the current board and it remains to be seen what will happen as IPPC permit news is expected by the end of the year which should hopefully bring some Xmas cheer to all shareholders. We do know from last week that AST’s broker WH Ireland increased their buy target to 3.11p (which you can read more about here) and stated they believe the full inherent value of the Petisovci field to be 5.95p.
Red Rock Resources Plc (AIM:RRR)
Fresh from his trip to Bosnia to visit the Steelmin plant, Richard Allen put together this blog of his trip with some other RRR investors and the management team. I won’t say too much about it here, you’ll just have to read it! It would be great to see more companies undertaking similar activities with shareholders.
Zanaga Iron Ore Company (AIM:ZIOC)
This AIM-listed Iron Ore miner announced this week that they had received an environmental permit licence from the Ministry of Environment in the Republic of Congo. The share price subsequently went into orbit reaching and finished the week at 10.25p having started it at 5.92p. We hope to speak to the company soon on one of our podcasts so please submit any questions to firstname.lastname@example.org and we’ll do our best to ask the questions that matter to shareholders.
88 Energy Ltd (ASX,AIM:88E)
Now you might be wondering why I’m covering 88E this week having not seen any news of late and unlikely to for the forseeable… or will we?…
Last Tuesday 31 Oct, the company put out a tweet highlighting the fact that Oil Search (ASX:OSH) has plunged US$522M into a private Alaskan oil company. It seems to have kicked off a resurgence in share price leading to a week close of 1.55p having been sitting under a penny the last month or so. With 88E (wisely imo) just having increased their acreage with a current Mcap of £72M… could it continue to rerate upwards? Time will tell as always. Fast forward a couple of days and the figure being banded about for Oil Search’s stake in Armstrong Energy appears to be more like $400M with a further option to purchase another $450M’s worth in due course… strewth! Add to that with the current upheaval taking place in Saudi Arabia together with output cuts via OPEC to start in December, we could see the oil price go on a bull run into 2018. That can only be good news for 88E holders and anyone else with positions in oil stocks.
#TheBizLounge by Mark Johnson: Taking the stress out of stocks
Thought of the week
As previously noted earlier in the blog, today is a time for reflection for those who gave their lives so we could live ours. Lest we forget. Not just those fallen here from the UK, but across the world in conflicts past and present.
Blog by @djxforce
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