This week: Something new for Imperial, Bright news for Sirius, Summit ready to climb
Small Cap Wrap will be on holiday for the 23rd and the 30th of August. Back on 6th September after the holidays, but see you next week.
Gold Prices and Gold Miners
As the budget cuts stalemate in the United States takes over from the Greek default crisis as the focus of investor attention around the world, the risk appetite continues to weaken. The main beneficiary of this is gold which reached a new record of $1,622.5 per ounce before falling back to $1,614 per ounce. If these issues are resolved, gold prices may reduce slightly, but this is by no means certain and buying, particularly in China and India, is expected to remain strong. Yet while the dollar price of gold bottomed in 1999 and has taken off strongly since 2005, prices of gold mining shares have tended to lag behind that of the yellow metal as “company specific” issue de-link the prices. However the long prices remain at historic highs with little risk of downward movement, the more likely those gold producers will produce increased earnings and gold explorers will benefit from improved discounted cash flow valuations of their projects. We watch companies like Avocet Mining (AVM 230p/£458.96m) in West Africa, Centamin Egypt (CEY 136.4p/£1,489.30m) in Egypt, and Pan African Resources (PAF 13.25p/£191.34m) in South African and Mozambique, with interest.
Angel Biotechnology Holdings (ABH 0.3p/£8.07m)*
Angel yesterday announced the appointment of expert engineering company WH Partnership Ltd. (WHP) of Newcastle-upon-Tyne as a key milestone in the ongoing re-commissioning of its GMP bio-manufacturing facility in Cramlington near Newcastle-upon-Tyne. The facility will increase Angel's manufacturing capacity approximately five-fold when fully re-commissioned. Under the contract WHP, who is an acknowledged expert in the field, will supply the specialist engineering support and services required for the next phase of the facility re-commissioning, taking it to GMP status. The Board expects the facility to be operational in early 2012.
Angel Mining (LON:ANGM) (ANGM 2.08p/£15.64m)
Angel Mining has observed good progress with the construction of the cable car upper terminal at the Black Angel Zinc/Lead Mine. As the Company’s primary asset, the mine consists of a JORC resource of 4.425 million tonnes of high grade zinc lead ore. The Black Angel Mine has one of the highest quality ore bodies around as it…
