African Eagle takes a flight of fancy, Innovision paints a picture for the future and Sunkar provides food for thought.
African Eagle Resources (LON:AFE) (AFE 5p/£14.84m)
African Eagle put out a positive announcement last week, more than doubling the contained metal at its nickel laterite site in Tanzania from 345,000 to 845,000 tonnes of nickel equivalent.
Additionally the results show that the composition of the deposit is low in iron (10% against a norm of circa 50%) and magnesium , meaning that the acid consumption that will need to be used in the leaching process will also be low.
Nickel demand is growing more than any other metal, even copper, primarily for its use in the production of stainless steel, which accounts for two thirds of all nickel produced. The demand for stainless steel and thus nickel is driven by the emerging economies of China and India. African Eagle benefits from its favourable location in Tanzania, with a rail road track within 80km and the availability of power, water and labour all close to the Dutwa site.
We think that with the scoping study demonstrates a sound investment case, and with the abundance of upcoming news flow (such as drilling results from the company’s other sites, updates to the inferred and indicated resource base when a fully digitalised model is used, sale of non-core assets in Uranium and Copper) now really is the time to invest in this exciting company.
Datong Plc (LON:DTE) (DTE 40.5p/£5.6m)
DATONG is a leading international supplier of advanced location based intelligence gathering equipment to military, security and law enforcement agencies. The core strategy of the Group is to deliver organic growth through continued investment in leading edge product and service solutions.
Following a tough 18- 24 months, the company has returned to profitability. The recently announced interim results to 31 March 2010, and more importantly the CEO’s positive comments on the state of the order book and trading environment, indicates that investors should expect further positive news flow over the rest of the year.
The order book (£7.75m orders received in the period vs. £4.75 for last year) is experiencing record new order intake levels and is a reflection of the company’s move into new geographic regions & markets and a loosening of the purse strings by the Obama administration. The trend in order growth has continued into…
