This week: A business that turns cash point machines into advertising space, a group that’s really got the power, lots of gold-diggers and sun, sand, sea and Cubus Lux.
Angus & Ross (AGU.L, 2.0 pence / £5.2m)
Consolidation usually brings economies of scale especially for mining companies operating in remote locations. Angus & Ross has now added another asset to their Greenland portfolio with the acquisition of the assets of Crew Gold’s Nalunaq gold mine in south- eastern Greenland. Crew had produced more than 300,000 ounces of gold over a four year period before placing the mine on care and maintenance. Angus & Ross paid a total consideration of $1.5 million for the assets which include mining and exploration licenses, mining equipment, a fully operational mine camp and ship loading harbour facilities. A fully paid environmental bond worth nearly $3 million is included. By adopting a different mining method employing predominantly local labour and by producing a concentrate on site, the company believes it can operate the mine profitably.
Angus & Ross estimates that it can achieve cash costs of $600 per ounce initially and lower thereafter as soon as it has constructed a process mill and gold plant on site which will eliminate the costs of shipping and externally processing the concentrate. Based on preliminary mine plans the company expects to produce a further 350,000 ounces of gold during a remaining 10 year mine life. Initial capital expenditure is expected to be $8 million and is likely to be financed by a combination of a gold loan and an equity placing.
The company’s major asset is the Black Angel zinc-lead property in western Greenland which is planned to go into production in 2010.
Ark Therapeutics Group plc (AKT.L, 45.4 pence / £94.2m)
The specialist healthcare group announced on 24th June that it has made a major advance in its production technology and processes for commercial manufacture of adenoviral gene-based medicines. The new process has resulted in a very high quality finished product with improved yields of up to 100 times those achieved by more conventional processes, making Ark something of a gene genie. Ark is a company with exciting times ahead and one to watch, we believe that this new facility will give it enhanced production capacity and is further proof that the company is in the commercialisation phase. Separately, Ark also…
