Here are some recent Rubicon Minerals Corporation analyst reports:
is (dot) gd/NLcRdK
Here are some recent Asanko Gold Inc. analyst reports:
is (dot) gd/1o0tP2
According to Canaccord Genuity:
Green light given. Asanko Gold announced that their board of directors has approved the construction of Phase 1 (Obotan) of the Asanko Gold Mine (AGM) in Ghana. As Canaccord Genuity Mining Analyst Joe Mazumdar expected the decision in July 2014, this is in line with his forecasts. Next significant potential catalysts include ground-breaking in August 2014, definitive project plan (Phase 1) in late Q3/14E-Q4/14E and a scoping study for Phase 2 (Q1/15E). Mazumdar forecasts commercial production in H1/16, in line with company estimate, for Phase 1 but a slower ramp up to full capacity (3.0 Mt/y) by H1/17 (vs. H2/16, company estimate). His AGM mine plan (which includes Phase 1 and 2) delivers an average production profile of 216 koz/y over a 21-year mine life at a C2 cash cost of US$874/oz, requiring US$321 M of upfront capital including US$106M for the Nkran pre-strip with an additional US$208M required for sustaining and reclamation capital. With Asanko’s current cash position (Q2/14, US$231M) plus the recently successfully executed US$150M secured debt facility from Red Kite, the company is well capitalized to fund the development of Phase 1.
According to Dundee Capital Markets:
Uranerz Announces US$10 Million Financing
Uranerz Energy (URZ-T)
Sell, High Risk, C$1.40 Target
Impact: Neutral. URZ announces marketed $10 MM public offering.
Deal details: Unit at $1.25, with ½ warrant at $1.60, exercisable for 30 months. This is a marketed deal. Offered at a 13% discount to last close.
URZ announced intentions to sell up to 8 MM units priced at US$1.25 for gross proceeds of $10 MM. Proceeds will be used for development of mining facilities, and general working capital purposes.
We recently downgraded URZ to SELL given its exposure to current uranium spot prices and relative valuation to peers. Current plans suggest the company will sell partially into spot, which would be unfavorable given above average total cash costs of ~$35/lb. We expect 47% of its production to be hedged this year and 33% next. We sense it possible that should low spot prices persist, URZ won’t charge ahead at full speed developing and permitting its pipeline in Wyoming. A lower production profile than its peers already means that there is less cash available to cover corporate costs, pay down debt or finance completion of its Nichols Ranch ISR plant. Despite remaining a market favorite for years, in our view it has become overvalued. Positively, the company recently hired two key personnel and operations remain on track with first production expected shortly (see note).
Valuation: URZ trades at a premium to peers on essentially all metrics.
• P/NAV of 1.32x vs. 0.88x for peers
• EV/lb of $6.38 vs. $3.95 for peers
• 2015 EV/EBITDA of 23.4x vs. 15.5x for peers
is (dot) gd/gkCPFe
Uranerz Announces US$10 Million Financing
CASPER, WYOMING--(Marketwired - July 16, 2014) - Uranerz Energy Corporation ("Uranerz" or the "Company") (TSX:URZ)(NYSE MKT:URZ)(FRANKFURT:U9E) is pleased to announce that it intends to offer and sell to the public in the United States and Canada an aggregate of up to 8,000,000 units of the Company at a price per unit of US$1.25 ("Units") for gross proceeds of up to US$10,000,000, before deducting the placement agents' fees and estimated offering expenses (the "Offering"). Each Unit will be comprised of one share of the Company's common stock ("Common Share"), and one half of one common share purchase warrant, with each whole warrant ("Warrant") exercisable to purchase one additional Common Share for a period of 30 months following the closing of the Offering at an exercise price of US$1.60, subject to adjustment and acceleration provisions. The Warrants will be transferable, however, the Company will not apply for listing of the Warrants on any securities exchange.
Haywood Securities Inc. and Cantor Fitzgerald Canada Corporation have agreed to act as co-lead agents in relation to the proposed Offering of the Units ("Lead Agents") on behalf of a syndicate of agents (the "Agents"). All offers of Units in the United States will be made by U.S. registered broker-dealers.
Closing is anticipated to take place on July 25, 2014, subject to satisfaction of the conditions to closing set forth in an Agency Agreement, including receipt of approval of the NYSE MKT LLC and the Toronto Stock Exchange. Upon mutual agreement between the Company and the Lead Agents, the Agents may place up to an additional 1,600,000 Units at the same price as the offering price to the public, such mutual agreement to be made at any time up to four business days prior to the closing of the offering.
According to Dundee Capital Markets:
is (dot) gd/3CeD57
Two Kyushu Reactors Meet Safety Requirements - But Hurdles Remain
Japan's nuclear watchdog, the Nuclear Regulatory Authority (NRA) has approved a 400-page Draft Safety Report for Sendai Nuclear Power Plant Reactors No. 1 and 2 in Kagoshima Prefecture. These reactors were on shortlist for priority screening by the Japanese Nuclear Industry and the NRA due largely to Kyushu Electric Power's positive attitude towards implementing safety measures. The new safety standards are widely considered some of the strictest globally. They include safeguards against various natural disasters, and almost any other type of nuclear accident.
NRA commissioners agreed to provide for a 30-day public comment period that will last until August 15th. A final draft report would be issued regarding the safety and technical merits of the plant. Kyushu Electric must garner local support for political sign off from both local and Prefecture levels of Government. We aren't sure how long this process might take, however industry chose these reactors due to the expectation of fewer hurdles. With two applications completed, we certainly hope it sets a precedent for the other 17 applied reactors in the application pipeline (see Table 1 for a full list).
Today's safety approval marks a major step towards eventual restarts. It is probably the most significant since formation of the NRA itself. We see this as positive for the equities but not necessarily for the uranium price yet. This psychological barrier should help in the short term, however, only when a number of reactors in Japan actually get back to consuming uranium, do we expect the nuclear industry to resume contracting and sourcing uranium. This would be expected to drive uranium prices higher. As we have said - this industry needs higher prices in order for any sustainable rally in the stocks to persist (see 14-July-14 note).
According to Dundee Capital Markets:
is (dot) gd/WIfayI
Uranium Market Panic Over, Now Just Malaise; Price Deck Revision
Uranium stocks have undergone a turbulent H1/14. Strong start, then collapse and now listless. Uranium prices were flat, then tanked and now have stabilized below US$29/lb U3O8 with no indication that prices will rise or fall in the near term. Prices are obviously below sustainable levels required, not only to incentivize the sector, but keep projects going as demonstrated by ongoing mine closures. Japanese restart timing remains a complete wildcard and no other catalysts appear in sight. As low prices and weak trading volumes have translated into a lack of enrichment service requirements, underfeeding continues to provide more uranium to the market than it can handle. We lower our U3O8 price forecasts to US$31/lb for 2014; US$40/lb for 2015; and US$55/lb for 2016. We also believe financing hurdles have become a major development issue, so either deferred projects or modeled dilutive equity raises.
We are taking stock of 2014. Six month performance of uranium stocks recently fell into negative territory for the first time this year. Although prices were flat early, the stocks had a great run through March 12th due to the significant positive fundamental news from the sector (mainly supply disruptions), and hope that Japan reactors would come back online by summer. Then reality set in. Uranium prices fell 18% over nine weeks and the stocks followed suit. Since mid-May uranium prices are again flat - and the stocks have started skating sideways (Figure 1). In fact, the explorers and almost half the developer stocks are actually treading above water again. But investors aren't paying much attention, trading volumes are down and malaise has set in. Most believe in uranium's long term fundamentals, but consensus is that there is too much physical supply available and prices could stay down for some time.
According to Dundee Capital Markets:
is (dot) gd/QLFJh2
July 14, 2014
NEUTRAL, High Risk
Dundee target: C$1.60
New Personnel A Strong Signal For Future Growth
Conclusion: We recommend URZ as a NEUTRAL with a C$1.60 share price target.
Uranerz Energy announced a personnel and operations update this morning. While today’s operations update is welcome news, it is also expected. Uranium is now being delivered regularly to Cameco (CCO-T, Neutral, C$24.50 Target), flow rates are high and uranium concentrations in the plant are increasing. This is helping de-risk the company from both financial and technical viewpoints.
But the important take home from today’s press release is that Uranerz is growing up. It has added two new key personnel - Mr. James Doug Norris, P.Eng. as Senior Process Manager and Mr. Robert Blackstone, P.G. as Senior Geologist. While many companies are pulling tighter on purse-strings, URZ is building for the future (and possibly covering key positions before retirements set in). Doug Norris is one of the pre-eminent ISR engineering experts in the US. He helped build both of CCO's Wyoming ISR plants and Mestena’s Alta Mesa mine in South Texas. His appointment would help the company immensely should it decide to finish its own ISR plant and stop toll milling. It should also help improve efficiencies within the front end of the ISR plant. Robert Blackstone has extensive geological experience in the US and his well field design background makes him ideal for drilling out the many well fields that Uranerz expected to design over the coming years.
Mitigating risks. Today’s appointments will help with what we believe are the most important risks standing in front of the company: Increasing production to a meaningful level and sustaining that production over the long term. Unlike other ISR companies, Uranerz has more of a hand-to-mouth approach through the advancement of several smaller deposits at the same time.
According to GMP Securities:
is (dot) gd/EBnV1C
Platinum Group Metals
July 14, 2014
Financials in line and WBJV build on-track; BUY
Financials as expected, remains funded
Cash reported of C$161m is in line with our forecast C$160m as spend of C$33m on WBJV matched our C$32m estimate, with a further C$3.6m spent on exploration. This brings the WBJV spend to date up to ~US$306m vs. capex of US$506m. Conservatively assuming the US$75m cost overrun facility is used, we estimate a residual ~US$275m is needed to complete the build. Net of cash this gives ~US$125m and with the proposed US$195m debt facility implies ~US$70m of headroom should be available to cover exploration, financing costs and overheads until break-even point.
WBJV build progressing well and on schedule
At WBJV the North Decline has now progressed 1,364m to a depth of 233m, with over 1,708m of ancillary development. Around 175m of reef has now been developed, with raise development of 288m into mining blocks and 75kt of development ore stockpiled thus far. The south decline has 541m of development in with rates improving thanks to more competent ground conditions. The company noted that civil engineering work is on, or ahead of schedule with deliveries for all major components expected on time.
Options on debt for WBJV
BEE is required ahead of debt approval, and we believe potential exists for a funded partner, perhaps even PTMs own BEE group. Thereafter, the proposed US$195m debt package with requisite funded US$75m cost over-run facility, Waterberg northern extension lien, and hedging (potentially of palladium only) remains a low-risk backstop. However, we think non-traditional, potentially strategic, funding with reduced hedge requirements shouldn't be ruled out. With six months before hitting critical path we think that evaluating alternatives remains the best course of action for shareholders.
Valuation update: Maintain BUY and C$1.55/sh price target
is (dot) gd/SIMJgE
VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA -- (Marketwired) -- 07/11/14 -- Platinum Group Metals Ltd. (TSX: PTM)(NYSE MTK: PLG) ("Platinum Group" or the "Company") reports the Company's financial results for the nine months ended May 31, 2014.
At Waterberg the Company is drilling with a total of 20 drill rigs and engineering is in progress for a Pre-Feasibility Study on the Waterberg Joint Venture. Seven drill rigs are located on the Waterberg Joint Venture completing in-fill drilling with the objective of converting inferred resources to the indicated category. Results to date have been consistent with the deposit model. Thirteen drill rigs are working on the Waterberg Extension permits with the objectives of in-filling and expanding this portion of the deposit.
Results For The Period
The Company's cash position at May 31, 2014 was $161 million.
The Company's key business objectives and milestones for the next twelve months are:
- to build the WBJV Project 1 platinum mine safely and in accordance with the planned schedule and budget;
- to close a planned US $195 million new project loan facility or an alternate financing for Project 1 by the end of 2014 in order to secure all funding required for the completion of Project 1, including mill, underground development and the establishment of sustained operations;
- the completion of a pre-feasibility study on the initial Waterberg Joint Venture deposit during calendar in early 2015; and
- to continue exploration and definition drilling on the Waterberg Joint Venture and Waterberg Extension with eight or more drill rigs during 2014.
is (dot) gd/v0IQiI
After obtaining a U.S. Nuclear Regulatory Commission permit to mine for uranium at Nichols Ranch Site in the Powder River Basin, Uranerz is already planning to expand their mining area in the near future.
In April, company officials announced the Nichols site, located in Johnson County, was officially in production after receiving the go ahead from the regulatory commission.
Recently, company officials have applied for a mining license amendment through the regulatory commission once again to include uranium rich land south of the site referred to as the Jane Dough Permit Area.
Manager of Investor Relations Derek Iwanaka said the amendment will add the Jane Dough land to their existing license for the Nichols Ranch, which includes the ranch area and the Hank area located northeast of the ranch.
He said the regulatory commission makes sure that numerous tests on the property are made to ensure that the land will be returned to the way it was before mining—especially the water supply.
For the amendment to be official, he said, they must also receive approval from the Wyoming Department of Environmental Quality.
Because the permit areas are so close together, he said, the company expects to install only well fields at the Jane Dough prospective site and use the plant on the Nichols site for processing purposes. He said this should make the project more cost effective.
Currently the company employs 50 people in Wyoming with 30 working at the Nichols site, he said, and the company will expand if they receive approval to mine at the Jane Dough site.
Though, he said, they do not have an exact time line.
The expansion to the Jane Dough site should create more jobs in the county, he said, and eventually increase taxation revenue. He said the company expects to have an update on initial production at the Nichols site by the end of the month.
is (dot) gd/jyBA9q
Rubicon Minerals Annual General & Special Meeting: Wednesday June 25, 2014 @ 2:00pm ET
Rubicon Minerals Corporation is an advanced stage gold development company, focused on responsible and environmentally sustainable development of its Phoenix Gold Project in Red Lake, Ontario towards projected gold production in 2014. Rubicon is well-funded and its flagship Phoenix Gold Project is fully permitted for production. In addition, Rubicon controls over 100 square miles of prime exploration ground in the prolific Red Lake gold district which hosts Goldcorp's high-grade, world class Red Lake Mine. Rubicon’s shares are listed on the NYSE.MKT (RBY) and the TSX (RMX) Exchanges. Rubicon’s shares are included in the S&P/TSX Composite Index.
is (dot) gd/TVTXpg
VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 12, 2014) - Rubicon Minerals Corporation (TSX:RMX)(NYSE MKT:RBY) ("Rubicon" or the "Company") is pleased to announce that it has closed its previously announced bought deal financing of 74,290,000 units (the "Units"), which includes the exercise of the over-allotment option in full, at an offering price of C$1.55 per Unit (the "Offering") for aggregate gross proceeds to the Company of C$115,149,500. Each Unit consists of one common share (a "Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant") of the Company, with each Warrant entitling the holder thereof to acquire, subject to adjustment in certain circumstances, one Share in the capital of the Company at a price of C$2.00 until March 12, 2015. The Warrants will trade on the Toronto Stock Exchange under the symbol "RMX.WT".
The Offering was conducted by a syndicate of underwriters co-led by TD Securities Inc. and BMO Capital Markets, and included National Bank Financial Inc., Scotia Capital Inc., Mackie Research Capital Corporation, Canaccord Genuity Corp. and Desjardins Securities Inc.
The Company plans to use the net proceeds from the Offering to further develop the Phoenix Gold Project.
Here are some more recent Rubicon Minerals Corporation analyst reports:
is (dot) gd/2hgKaY
Great Panther Reports Fatality at Its Topia Mine
June 25, 2014
VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 25, 2014) - GREAT PANTHER SILVER LIMITED (TSX:GPR)(NYSE MKT:GPL) ("Great Panther"; the "Company") is saddened to report the death of an employee on Wednesday, June 25th due to a rock fall at its Topia Mine in Durango State, Mexico. The accident occurred in the 1522 underground mine, which is one of 11 independent mines comprising the Company's Topia Mine District.
"We are all deeply affected by the loss of one of our colleagues and we extend our sincere condolences to his family and friends and our entire team at Topia", stated Robert Archer, President and CEO.
The 1522 mine was closed immediately, authorities notified and an internal investigation is under way. Once these investigations are completed the Company will review and implement any additional safety procedures recommended to prevent such an accident from recurring at any of our operations. Eliminating all potential safety risks will remain a priority and we will continue working to create an environment free of injuries for all of our employees.
ABOUT GREAT PANTHER
Great Panther Silver Limited is a primary silver mining and exploration company listed on the Toronto Stock Exchange under the symbol GPR, and on the NYSE MKT under the symbol GPL. The Company operates two wholly owned mines in Mexico: Topia and Guanajuato. Great Panther is in the process of developing its San Ignacio Project with a view to production in the first half of 2014, and has two exploration projects, El Horcon and Santa Rosa. The Company is also pursuing additional mining opportunities within the Americas, with the goal of adding to its portfolio of mineral properties.
Here are some recent Rubicon Minerals Corporation analyst reports:
is (dot) gd/Q71BBx
is (dot) gd/SYiVmD
Uranium: Fundamentals Tough but Long-term Outlook Still Bright
The uranium market is over-supplied – this is not news. Spot prices have consequently fallen, plumbing depths not seen since May 2005 (now US$28/lb). Unfortunately, there has been little supply response so far (mines and secondary sources remain stubbornly resilient), and catalysts for a resurgence in demand have been pushed out, suggesting excess materials and lower prices may characterize the market longer than previously forecasted. We believe the realization that a major upswing in prices is unlikely in the near-term has spurred a rotation of shorter-term investors out of the space and led to a broad-based decline in uranium equity value. But we see this weakness as temporary. Prices must more than double in the coming years to head off our projected global uranium deficit, and we believe investors with longer-term horizons will be rewarded by positions in the highest quality uranium equities, now trading at attractive valuations.
- Japan Not Cooperating. We have long viewed restarting Japan’s reactors as a key catalyst for the space. However, despite the election of new pro-nuclear commissioners, the Nuclear Regulation Authority (NRA) appears in no rush to green-light the first units and municipal government approvals will be a challenge in some regions. Restarts in time for peak summer demand now appear very unlikely; we forecast only Kyushu Electric’s two Sendai units to be online by year-end (from six previously). We also cut our expectations on eventual restarted capacity to 37% or 14 GW (from 30 GW).
- More Supply… Just When We Need it Least. A slower return of Japan implies greater spare capacity for underfeeding at global enrichment plants – a growing source of supply difficult to quantify (WNA and UxC estimate up to 20 Mlbs/yr potential; we model peak 15 Mlbs/yr).
is (dot) gd/yKvQd0
Alderon Iron Ore Corp. (ADV), developer of the C$1.3 billion ($1.2 billion) Kami iron mine in Canada, may miss a self-imposed target for completing the project’s financing package, Chairman Mark Morabito said.
“That’s possible, though it won’t be much longer before we have it,” Morabito said by telephone from Beijing. “The project itself is shovel ready -- we are fully permitted. All we have to do is bring in the money.”
Falling prices for iron ore, a raw material in steelmaking, and the ripple effect from a crackdown in China on steel-industry borrowing have hampered Vancouver-based Alderon’s efforts to reach a final financing agreement with lenders, Morabito said.
That may prevent Alderon from conducting a shareholder vote on the project financing at its annual meeting in Montreal on July 29, he said. The company would prefer to avoid having to set a separate special meeting to get shareholder approval, he said.
It wouldn’t be the first time events have not gone according to Morabito’s expectations.
Last August, he said Alderon was within weeks of signing on a new Asian partner for Kami and that a financing package would be completed near the end of 2013. Alderon has fallen 14 percent this year as the financing and its search for a second partner have dragged on.
Alderon rose 0.7 percent to C$1.44 at 11:38 a.m. in Toronto.
Ready to Go
Last month Alderon signed an agreement with the provincial government of Newfoundland and Labrador, clearing the way for the start of construction as soon as financing is ready, Daniel Greenspan, a Toronto-based analyst at Macquarie Group Ltd., said in a note to clients on May 26.
Alderon is continuing to seek a second partner after Hebei Iron & Steel Group, China’s largest steelmaker, signed onto the Kami project in 2012. Hebei is paying C$182.2 million for 20 percent of the Canadian company and a 25 percent stake in the mine.
Here are some recent Platinum Group Metals Limited analyst reports:
is (dot) gd/u0FfHF
The interest in Qunar, the magazine explained, mainly stems from the potential growth of China's travel market, which is forecast to grow at a compound annual rate of 9.7% between 2013 and 2016, according to consultancy firm iResearch.
The online travel market is predicted to expand at a faster rate of 26.7% during the same period, since the segment only accounted for 6.6% of the overall travel market in 2012.
Qunar has the backing of China's top search engine Baidu, which currently has a 54.1% stake in Qunar and has promised to direct traffic to the travel deal site between 2014 and 2016.
Qunar also led in the size of its user base, the magazine added, and dominated in the area of the mobile internet, which had become the main battleground for internet companies in China.
A market report for the first quarter of this year stated that Qunar's mobile users rose 86.1% to 60.3 million from last year, while a China Internet Network Information Center survey in 2012 stated that 54.8% of mobile users downloaded Qunar's app, followed by that of travel site Ctrip at 44.2%, and 25% for Taobao's travel app.
According to Qunar's CFO, the mobile end accounted for over 30% of the company's revenue during the first three months this year, a result of its early moves into the area.
The magazine also stated that Qunar's service of helping travel agencies and businesses in the hospitality sector build a software platform has also allowed it to penetrate the fragmented market in China.
For instance, only 27,000 of over 310,000 hotels in China were operated by chains, while over half of them were independent and non-starred operations, the magazine said. Qunar now plans to introduce its platform in two-thirds of the independent hotels over the next two years to expand its reach.
The magazine also stated that the value of a technology company is not determined by its profits, since it first needs to secure a dominant position in the market to ensure its long-term prospects.