Insights About Three Mining Stocks: WRES, ROSE, RGM

Insights About Three Mining Stocks: WRES, ROSE, RGM

W Resources PLC

AIM-Listed W Resources Plc is engaged in exploration, production and development of Tungsten metal, through its subsidiaries. Its shares got admitted on November-04-2004 on the London Stock Exchange (AIM) for trading. The outstanding market capitalisation of the company stood at £26.84 million, which ranks it among the small-Cap companies listed on the AIM. Mitton Asset Management Ltd, Alliance Trust Plc and BBVA Asset Management S.A are some of the institutional investors in the company.

Recent developments

The basic structure of Spiral Concentrator and Shaking table at La Parrilla is now ready. The Crusher and Jig plants are commissioned and are operational on mined ore. The Production is in line with the guidelines. In mid-June, the group notified that it has signed a contract for ore haulage and crushing at Regua location with Francisco Pereira Marinho Imaos SA.

In the exchange filing made by the group in the first week of June, the company has entered into a contract for mining with GME (General de Maquinaria y Excavacion) in the “La Parrilla” project (Spain).

Financial Performance – (FY18, the period ended as on December 31, 2018)

During the year under consideration, the company’s revenue stood at £196k against zero revenue in FY17. Operating loss (before exceptional items), during the period, surged to £806k against a loss of £711k recorded in the year-ago period. However, Operating loss (after exceptional post items) stood at £658k from £711K recorded in the year-ago period. Pre-tax loss surged to £4,119k from a loss of £732K recorded in the FY17 period, driven by a sharp increase in the finance costs, exchange losses and Impairment charges. Net loss for the financial year 2018 stood at £4,051K. Per Share basic loss per share stood at 0.07 pence against a loss of 0.02 pence in FY17.

During the year, the Spanish government awarded a grant of €5.3 million to the group. Also, the group completed the layout design, engineering, and procurement for the La Parrilla mine and completed the installation of power, water, road, warehouse and office facilities.

At Regua and Tarouca, Tungsten, Portugal, the group awarded land access and approval including the purchase of 20.3 hectares of land covering the main area of the Regua mine and extended Régua Trial Mine Licence till June 19, 2020.

Stock Price Chart

Daily Price Chart as at July 03, 2019 (after the market closed) (Source: Thomson Reuters)

On July-03-19, after the market closed, WRES shares closed at GBX 0.43 and dipped by 1.149 per cent against the previous day closing price.

Stock’s 52 weeks High and Low is GBX 0.624/GBX 0.396. At the time of writing, the share was trading 30.29 per cent lower than the 52w High and 9.85 per cent higher than the 52w low. Stock’s average traded volume for 5 days was 15,568,168.80; 30 days – 16,932,641.50 and 90 days – 19,014,983.99.

5-days average traded volume was down by 8.06 per cent when compared with the 30 days average traded volume. The company’s outstanding market capitalisation stood at £25.93 million.

Rose Petroleum PLC

Rose Petroleum Plc is engaged in the exploration and production of oil and gas together with mining of gold, copper, silver and uranium in Mexico. It shares are listed on the London Stock Exchange (AIM) and is a part of FTSE AIM All-Share – Oil & Gas.

Recent Developments

In the exchange filing made by the group as on June 28, 2019, the group notified that Mr Rick Grant appointed as the Non-Executive Director of the company with immediate effect. He is carrying a 40-years of experience in the Oil and Gas industry.

Financial Highlights

 As on June 28, 2019, the group reported its financial results for the period ended December 31, 2018. During the year under consideration, the group’s operating loss significantly narrowed to US$744k from US$3,513k of operating loss recorded in the year-ago period. This was primarily driven by a significant reduction in the administrative expenses from US$2,063k recorded in the FY17 to US$1,646k in FY18 and gained US$1,084K from forex operations against the loss of US$1,378K reported in the year-ago period. The loss for the FY18 from continuing operations stood at US$761k against the loss of US$3,513k recorded in the year-ago period. Per share loss from the continuing operation lowered substantially to US$0.58c from US$6.22c recorded in the year 2017.

During the year under consideration, net cash outflow from the operating activities lowered to US$1,676k from US$1,965k reported in the year-ago period. Net cash outflow from the investing activities elevated to US$1,135K from US$998k in the year-ago period, and Net Cash inflow from the financing activities stood at US$1,264K as the group received US$1,345K proceeds from the issue of shares.

Stock Performance 

Daily Price Chart (as on July 03, 2019), after the market closed. (Source: Thomson Reuters)

On July 03, 2019 (after the market closed), the Rose Petroleum Plc shares closed at GBX 1.35 and remained flat against the previous day closing price.

Stock’s 52w H/L is GBX 3.90 /GBX 1.00. At the time of writing (after the market closed), the share was trading 65.38 per cent lower than the 52w High and 35 per cent higher than the 52w low. Stock’s average traded volume for 5 days was 2,164,803.40; 30 days – 644,531.10 and 90 days – 1,894,376.31.

5-days average traded volume was up by 235.87 per cent against 30 days average traded volume. The company’s stock beta was 1.74, reflecting much higher volatility as compared to the benchmark index. The company’s outstanding market capitalisation stood at £2.27 million.

Regency Mines PLC

Regency Mines plc (RGM) is a United Kingdom-based company which is into mining of natural resources and identifying targets for exploration and development. The company operates in various segments namely – Oil & Gas (Westport), minerals (Motzfeldt and Mambare) and investments in Red Rock Resources Plc. The company has made other investments in Australian Exploration and Papua New Guinea exploration.

Recent developments

The company made some recent appointments to the directorate.  Nigel Burton and Ewen Ainsworth were appointed as Non-Executive Chairman and independent Non-Executive Director respectively. Scott Kaintz was appointed as Chief Executive Officer of the Company. He was formerly working as Executive Director.

Edmund Bugnosen resigned from the post of Non-Executive Director. He contributed immensely in the Company’s nickel/cobalt project in Papua New Guinea in his tenure. However, Mr Bugnosen would be serving the company as a consultant in the Papua New Guinea project. Mr Burton has more than 30 years of experience in achieving financial and operational excellence. He previously worked as an investment banker with many reputed firms. He is a doctorate in Acoustic Imaging (University College London) with a background in Electrical and Electronic Engineering.

Mr Ainsworth has a work experience of more than 30 years. He is a chartered accountant professional with a background in Economics and Geography (Middlesex University).

 Earlier the company’s fully owned subsidiary, EsTeq Ltd. had invested in White Car Ltd., which has filed for voluntary liquidation. The investment was valued zero in the Regency interim accounts as announced earlier this March.

 Financial Highlights for H1 FY19 (£)

(Source: Company’s filings, LSE)

The net finance costs increased by £1,19,237 to £164,091 in the first half of the Financial Year 2019 from £44,854 in the first half of the Financial Year 2018. The company’s loss for the period before taxation stood at £1,749,365 in the first half of the Financial Year 2019 as against profit for the period before taxation of £421,297 for H1 FY18. The company’s loss for the period (attributable to shareholders) stood at £ 1,746,702 in the first half of the Financial Year 2019 as against profit for the period of £421,297 for H1 FY18.

The company’s cash balances were £132,356 in H1 FY19 as against £38,473 in H1 FY18 which was a 244.02 per cent rise from existing levels. The short-term borrowings surged by 136.24 per cent, from £568,751 in H1FY18 to £1,343,651 in H1 FY19.

Share price performance

Daily Chart as at July-03-19, after the market closed (Source: Thomson Reuters)

On July 03, 2019 (after the market closed), the Regency Mines plc shares ended at GBX 0.07 and remained flat against the previous day closing price.

Stock’s 52w H/L is GBX 0.70/GBX 0.05. At the time of writing (after the market closed), the share was trading 90.00 per cent lower than the 52w High and 40 per cent higher than the 52w low. Stock’s average traded volume for 5 days was 2,553,667.80; 30 days – 3,090,959.67 and 90 days – 6,094,977.74.

5-days average traded volume was down by 17.38 per cent as compared to the 30 days average traded volume. The company’s stock beta was 0.78, reflecting lower volatility as compared to the benchmark index. The company’s outstanding market capitalisation stood at £1.06 million.

On a Y-o-Y basis, RGM shares have delivered a negative price return of 87.27 per cent. Also, on a year-to-date basis, the stock has recorded a negative price return of approximately 75 per cent as against the negative return of 77.34 per cent of the benchmark index. For the past three months, the stock has generated 7.69 per cent positive returns as against 5.30 per cent positive returns of the benchmark index.

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