Mining News
Vatukoula Gold Mines (LON:VGM) (VGM LN, 74.6p, ? 0.5%) 2Q12 operational update showed a 8.73% fall in production compared to the previous quarter, partially due to heavy rainfall in January and lower gold recoveries. Combined with a slight fall in received gold price to US$1,639/oz, this resulted in a 35% fall in profitability to £900k. However, the company believe they are on track to reach 65koz production this year. Also during the quarter, the Fiji Sugar Corporation announced VGM will be partnering in the Rarawai Biomasse Power Project which could reduce VGM?s power costs from US$0.3 to US$0.12 per kWh.
Sylvania Platinum (LON:SLP) (SLP LN, 20.5p, ? 1.23%) announced that severe weather conditions caused by storm Dando, neighbouring strike action and safety stoppages mean that the company?s production guidance for the year has been cut from 60koz to 50koz., although still a 25% increase on last year. With the recent commissioning of the 6th plant at Mooinooi, going forward the company now has the capability to achieve 15Koz per quarter.
Beacon Hill (BHR LN, 10.25p, ? 0.0%) has announced a marketing partnership with Vitol Coal for the sale of export coal from Minas Moatize. The strategic partnership is initially for 4 years, with Vitol having the option to extend for a further 4 years and a break clause in the event of a change of control at Beacon Hill. Vitol will provide BGR with a US$20m secured debt facility available in two US$10m tranches repayable by 31 December 2016. BHR will continue to market 600kt pa to Global Coke.
Oil and Gas News
Argos Resources (LON:ARG) (ARG LN, 17.5p, ? 1.45%) ? Let?s get ready to rumble!: Argos has announced its 2011 results, outlining the operational progress that it has made in the last 12 months (to December 2011). The Company has completed the acquisition of 3D seismic data over the entire PL001 licence area; it now has 3D seismic data covering most of the northern half of the North Falkland Basin. It has identified some 22 stratigraphic prospects, a number of which are analogous to Sea Lion, and a better resolution has been gained over Johnson, a potential multi-TCF wet gas discovery. The best estimate of unrisked prospective recoverable resource has been increased to 2.1 billion barrels,…
