Amur Minerals Corp (LON:AMC) (AMC 4.25p/ £8.96m)
The US$84m NPV10 value detailed in the original pre-feasibility study carried out by SRK was predicated on a nickel price of US$7.50/lb, or US$16,535 per tonne. The sensitivity of the valuation to an increase (or decrease) in the nickel price, is that a rise of US$1/lb Ni adds US$100m to the NPV10. The current nickel price is US$20,525/tonne, equivalent to $9.30/lb…….
Anglesey Mining (LON:AYM) (AYM 29p/£44.42m)
Anglesey’s 41 percent owned associate company and Toronto Stock Exchange listed Labrador Iron Mines Holdings has moved one important step closer to mining operations as it is now in possession of a certificate of approval for the construction of its mining facilities. The company is still facing a few more hurdles including an operating permit for the mine and a permit to use a new railway completed in June that will be used to transport equipment and plant modules to the site. Construction and commissioning will proceed as soon as these approvals are obtained, but the company is working against a deadline of late November for the initial start up which is when the seasonal operations end. The goal is to see full scale commercial production by April 2011 with a production of 2 million tonnes of iron ore during next year.
Avacta Group Plc (LON:AVCT) (AVCT 0.78p/£11.12m)
We last wrote on Avacta in November 2009 after their results and a placing of shares at 1.5 pence each. Since that date, the Company has announced the acquisition of Reactivlab for shares; a further share placing in July 2010, grossing £1.38m; and the disappointing news that sales of its Optim unit have proved slow.
With free cash available as at the end of January 2010 of c. £1.05m (taking into account trade debtors and creditors) and a cash burn of c. £160k per month (which investors should have expected to rise on the back of increased marketing and commercialisation costs) the recent share placing should not have been a surprise. However the shares have performed poorly – particularly since May, when one presumes that the Company’s financial position started to become more widely known in the market.
Having stated the above, Avacta does appear to be addressing the main cause célèbre for similar small medical device companies – that of distribution. Many such companies have tried to build…
