Three Mining Stocks To Watch: Sirius Minerals, Erris Resources, Acacia Mining

Three Mining Stocks To Watch: Sirius Minerals, Erris Resources, Acacia Mining

Sirius Minerals plc

Background

Sirius Minerals Plc (LSE: SXX) undertakes the business of evaluation & exploration of resource properties and focus on the Woodsmith mine development in the United Kingdom. It constructs Woodsmith Mine, located in the Whitby, North Yorkshire. The polyhalite project of Sirius Minerals Plc situated in North Yorkshire. The project produces polyhalite which is a unique multi-nutrient fertiliser containing potassium, sulphur, magnesium and calcium. The company, through its projects, serves local, regional and national economies. Sirius Minerals headquartered in London, the United Kingdom. Fertilizer and Polyhalite are the company’s key product offerings. Extracting Services and Materials Handling Facility are the critical services provided by the company.

Recent Developments

July 19, 2019

Sirius Minerals Plc announces an intention to offer USD 500 million in aggregate principal amount of senior secured notes due 2027.  York Potash Intermediate Holdings plc would issue the senior secured notes. The notes are due in FY 2027. York Potash Intermediate Holdings plc is a wholly owned subsidiary of Sirius Minerals Plc. The proceeds of the offering would fund the construction and development of a polyhalite mine, located in North Yorkshire in the United Kingdom.

July 2, 2019

Sirius Minerals Plc provided an operational update for its Q2 FY 2019. As per the update, management expects to start production of polyhalite from FY 2021. The production schedule is moving with management’s expectation also the cost remains within budget. Further, the company revealed in the operational update about its entry into the Indian market. In the reported period, the company signed a deal with the Indian Farmers Fertilisers Cooperative Limited (IFFCO). As per the agreement, Sirius Minerals Plc would supply polyhalite to India. Further Sirius Minerals Plc would be under an obligation to provide annually total peak volumes of 11.7 Million Tons. Finally, during Q2 FY 2019, Sirius Minerals Plc started twenty-nine agronomy trials. Overall this brings the number of full agronomy trials began in FY 2019 to date to forty- eight. Overall, Sirius Minerals Plc has conducted till date four hundred and thirty tests over forty-eight different crops spread over thirty countries globally.

Financial Highlights (FY 2018, GBP million) – April 30, 2019

(Source: Annual Report, Company Website)

The company posted a net loss for the full year ended December 31, 2018. The company posted an operating loss of GBP 24.2 million for the FY 2018 as compared to a loss of GBP 24.0 million for FY 2017. The Loss before taxation stood at GBP 13.5 million for FY 2018 an improvement versus Loss before tax of GBP 79.3 million in FY 2017. The company’s Net loss was GBP 12.5 million for FY 2018 against loss of GBP 78.9 million for FY 2017. In FY 2018, the company’s basic Loss per share came in at 27 pence versus Loss per share of 1.82 pence in FY 2017. In FY 2018, the company’s Diluted Loss per share stood at 41 pence versus Loss per share of 1.82 pence in FY 2017.

Sirius Minerals Plc Share Price Performance

Daily Price Chart (as on July 22, 2019), before the market close. (Source: Thomson Reuters)

On July 22, 2019, at the time of writing (before the market close, GMT 12:53 PM), Sirius Minerals Plc shares were trading at GBX 16.0880, up by 0.55 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 39.61/GBX 12.92. The outstanding market capitalisation was around GBP 1.13 billion.

Erris Resources plc

Background

Erris Resources plc (LSE: ERIS) is a United Kingdom-based mineral exploration and development company. The Company is focused on two geographic areas: Ireland and Sweden. In Ireland, the Company holds six license areas covering approximately 159 square kilometres, which comprise the Abbeytown Project in County Sligo. The Company is focused on zinc mineralization, with ancillary lead, silver and copper in the Abbeytown project. Erris Resources plc also has a strategic alliance with Swedish company Centerra Gold KB. The strategic partnership with Centerra covers a defined area of interest (AOI) of 65,796 square kilometres in Northern Sweden. The Company has rights granted or pending over licenses covering approximately 313 square kilometres within Centerra’s AOI.

Recent Developments

June 27, 2019

Erris Resources plc provided an update on its activities for the first half of FY 2019. In June 2019, in house geologists went prospecting to the Pirunkoukka and Sakiatieva reservation permits in Finland; and in new areas in North of Sweden.  The work fully sponsored by its December 2015 agreement signed with Centerra Gold. At the end of May 2019, the company reported it had approximately EUR 2 million in cash in hand.

Financial Highlights (FY 2018, EUR million) – April 5, 2019

(Source: Annual Report, Company Website)

Total revenue for FY 2018 came in at EUR 165,216 versus total revenue of EUR 111,676 in FY 2017. The company’s Gross Profit came in at EUR 35,647 in FY 2018 versus EUR 58,671 in FY 2017. In FY 2018, Operating Loss came in at EUR 1,102,733 versus Operating Loss of EUR 557,053 in FY 2017. In FY 2018, Loss before tax stood at EUR 1,101,444 versus Loss before tax of EUR 556,999 in FY 2017. In FY 2018, Net loss came in at EUR 1,101,444 as compared to EUR 529,279 in FY 2017. The company’s basic Loss per share in FY 2018 came in at 3.54 cents versus Loss per share of 2.65 cents in the year-ago period. In FY 2018, the company’s Diluted Loss per share stood at 3.54 cents from a loss per share of 2.65 cents in the year-ago period.

Erris Resources plc Share Price Performance

Daily Price Chart (as on July 22, 2019), before the market close. (Source: Thomson Reuters)

On July 22, 2019, at the time of writing (before the market close, GMT 12:53 PM), Erris Resources plc shares were trading at GBX 5.00, up by 5.26 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 12.00/GBX 4.31. The outstanding market capitalisation was around GBP 1.48 million.

Acacia Mining plc

Background

Acacia Mining plc (LSE: ACA) is a United Kingdom-based gold mining company and is the holding company of the Acacia Group. The group has three mines, all located in north-west Tanzania, and is one of the largest producers of gold in Africa and the largest gold miner in Tanzania. In addition to gold, as a co-product, the group also produces silver and copper. In Burkina Faso, Mali and Kenya, the group has a portfolio of exploration projects. The group’s operations are differentiated in three operating segments which based on its three gold mines: North Mara; Bulyanhulu; Buzwagi. The group is listed on the London Stock Exchange and Barrick Gold Corporation is the group’s majority shareholder. On the Dar es Salaam Stock Exchange, the company has a secondary listing.

Recent Developments

July 19, 2019

Barrick Gold Corporation announced they have agreed to a revised acquisition offer from Acacia Mining plc. The proposition now stands at worth 232 pence per share of Acacia Mining plc. As per the revised offering, in exchange for one Acacia share the holder would receive 0.168 of Barrick Gold Corporation shares. The shareholders are also entitled to get special dividends and deferred cash considerations over the disposal of exploration assets. Acacia Mining plc had rejected a previous offer of 146 pence per share from Barrick Gold Corporation made in May 2019.

July 12, 2019

Acacia Mining plc announced that it received a notice from the Mining Commission of the Tanzanian Ministry of Minerals. As per the announcement, the Mining Commission of the Tanzanian Ministry of Minerals would undertake an inspection of the North Mara gold mine. Only after the review is complete would the regulatory body would issue a permit for the export of gold shipments from the mine.

Financial Highlights (FY 2018, USD million)

(Source: Annual Report, Company Website)

Total revenue for FY 2018 came in at USD 663.8 million versus total revenue of USD 751.5 million in FY 2017. The company’s EBITDA came in at USD 225.9 million in FY 2018 versus USD 257.2 million in FY 2017. In FY 2018, Net earnings came in at USD 58.9 million versus a net loss of USD 707.4 million in FY 2017. However, adjusted net earnings in FY 2018 came in at USD 44.3 million versus net earnings of USD 146.2 million in FY 2017. In FY 2018, the company’s basic earnings per share came in at 14.4 cents versus basic Loss per share of 172.5 cents in the year-ago period. The company’s Adjusted Earnings per share (AEPS) stood at 10.8 cents in FY 2018 from AEPS of 35.7 cents in the year-ago period.

 

Acacia Mining Plc Share Price Performance

Daily Price Chart (as on July 22, 2019), before the market close. (Source: Thomson Reuters)

On July 22, 2019, at the time of writing (before the market close, GMT 12:53 PM), Acacia Mining Plc shares were trading at GBX 223.40, up by 0.36 per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 268.20/GBX 93.56. The outstanding market capitalisation was around GBP 916.21 million.

Facebook Comments