Latest Updates On Three Stocks: CORAC, HILS and WRES

Latest Updates On Three Stocks: CORAC, HILS and WRES

Cora Gold LTD

Cora Gold Ltd (CORAC) is an exploration stage, gold exploration and mining company. It has several projects under various stages of development in Mali and Senegal in West Africa. Three of these projects have now achieved the de-risked status; which means, the reserves at these sites are proven after test drilling and chemical testing, with high grades of minerals having been discovered. The company also has an agreement with Hummingbird resources Plc, another gold mining company in the same region, through which it has the rights to explore on the acreages owned by the latter.

The company is based out of the British Virgin Islands; and is listed on AIM at the London Stock Exchange and trades with the ticker name CORAC.

News updates

The company on 7 August 2019 released mineralization report for its Selin prospect in Mali. The report contains the detail of gold content per tonnage of ore, which goes on to prove the viability of extraction of the resource.

There has been a significant block sale of shares of the company, with Robert Monro, an insider of the company, holding the position of head of business development and previously having held similar positions in Hummingbird resources Plc, taking up 170,436 shares in the company. The transaction was valued at £5217.39 with individual stocks priced at GBX 3.

Financial update from Annual report of FY 2018

The company is an exploration and mining stage; it has no sales and is still funding its exploration activities. The company reported a net loss of $837,000 for the year ended 31 December 2018, compared to a gain of $3.572 million for the period ended 31 December 2017. The increase last year was due to a gain in business combination when the company assumed intangible assets worth $ 5.210 million while issuing shares worth $3.050 million in return; similarly, an amount of $2.038 million was gained by the company on account of the reorganization of the Kora Gold Group. Both these transactions formed part of deal entered by the company with Hummingbird resources PLC last year. The loss per share was of 0.0150 cents for the full year period ended 31 December 2018, whereas for the period ended 31 December 2017 the corresponding gains were 0.1114 cents per share.

(Source – Company annual report publication for Financial Year ending 2018)

Share Price Information of Cora Gold LTD

Daily Chart as of 07 August 2019, before the market close (Source: Thomson Reuters)

On 07 August 2019, at the time of writing (before the market close, GMT 9.59 am), CORA shares were trading at GBX 5.85, down by 0.51 per cent against the previous day’s closing price of GBX 5.88. The stock’s 52 -week High is GBX 16.5, and 52-week Low is GBX 2.7. The total market capitalization of the company is around $5.91 million.

Outlook

The company’s proven reserves have now put it in high gear. It is ramping up its activities across its assets as they nears production. Its deal with Hummingbird Resources PLC has provided it with enough leverage to expand its exploration activities further in the area.

The company is one of the few AIM-listed Gold mining companies working in West Africa, which has reached the de-risked stage, or whose exploration activities have yielded positive results, with quantifiable estimates. The potential earnings of the company in future periods can be estimated based on the valuation of these mineral resources.

Hill & Smith Holdings PLC

Hill and Smith Holdings Plc (HILS) is a British construction material supply company. Its supplies include general construction materials to specialist components that can protect high-security buildings and structures against terrorist attacks.

The company is 195 years old and is credited for its role in the construction of many famous structures including the palatial gates of the palace belonging to King Chulalongkorn of Siam and the Sydney Harbor Bridge. The company has its shares listed on the London stock exchange and trades with the ticker name HILS. It is also a component of the FTSE 250 index.

News update

The company on 07 August 2019, came out with its half-yearly results for the financial year 2019. The company has performed very well with revenues surging 15% and pretax profit jumping 16% over the previous year. The company on the same day announced that Chairman of Board Jock Lennox would be retiring, and his position would be taken up by Alan Gibbins who till now held the position of non-executive director at the company. He would be taking up the new position from October this year.

Financial update from the Half-yearly results report for FY 2018

The company for the Half-year period ended 30 June 2019, reported revenues of £339.5 million compared to the previous year half-year period ended 30 June 2018 when it was £295.4 million. This translates into a growth of 15% over the year. The operating profit of the company was £40.2 million for the Half-year period ended 30 June 2019 against £34.6 million for the half-year period ended 30 June 2018, a growth of 16%. The earnings per share were 37.5 pence for the Half-year period ended 30 June 2019, and for the Half-year period ended 30 June 2018 it was 32.8 pence. The company has declared a dividend of 10.6 pence for Half-year period ended 30 June 2019, while it was 10.0 pence for the Half-year ended 30 June 2019.

Source – Company interim results publication

Share Price Information of Hill and Smith Holdings Plc

Daily Chart as of 07 August 2019, before the market close (Source: Thomson Reuters)

On 07 August 2019, at the time of writing (before the market close, GMT 3.04 pm), HILS shares were trading at GBX 1135, up by 8.39 per cent against the previous day’s closing price. The stock’s 52-week High is GBX 1488, and 52-week Low is GBX 877.5. The total market capitalization of the company is $900.33 million.

Outlook

The company has delivered an excellent performance this year, backed by good infrastructure spend in its key markets of the United States and the United Kingdom. The company has taken stock of the challenging economic condition in the United Kingdom and believes that its key clients will continue their spend unabated.

The company this year in April acquired, Hostile Vehicle Mitigation a specialized company providing solutions for the protection of buildings and other infrastructures against terrorist threats. This division will specifically target businesses in state-owned security establishments, which are least affected by economic downturns.

W Resources PLC

W Resources PLC (WRES) is a United Kingdom-based company having mining interests in Portugal and Spain for metals like tungsten, tin, copper and gold. The company has three projects for the exploration and production of tungsten and tin, one is in Spain, called the la Parrilla project, and two projects in Portugal, called the Regua tungsten project and Tarouca tungsten project respectively. Its gold and copper projects are located in Portugal, namely CAA Portalegre in Sao Martinho where the gold reserve is and in Monforte-Tinoco, where the copper mines are located.

The company is listed on AIM at the London Stock Exchange and trades with the ticker name WRES.

News update

The company on 07 August 2019 announced that it had finished construction work at its flagship project, the la Parrilla project in Spain with production to start later this year. This is the first time the company is entering production phase with any of its projects; previously it was purely into mining and exploration.

Financial update from for FY 2018 ending 31 December 2018

The company for the full-year period ended 31 December 2018, reported revenue of £196,000 while for previous year Full-year period ended 31 December 2017 it did not have any revenue. The operating loss of the company is £658,000 for Full-year period ended 31 December 2018 against £711,000 for the full-year period ended 31 December 2017. The loss per share is 0.07 pence for the full-year period ended 31 December 2018, while for the Full-year period ended 31 December 2017 the loss was 0.02 pence. The company has not declared any dividend for the year ended 31 December 2018.

Source – Company Annual report publication for FY 2018

Source – Company Annual report publication for FY 2018

Share Price Information of W Resources Plc

Daily Chart as of 07 August 2019, before the market close (Source: Thomson Reuters)

On 07 August 2019, at the time of writing (before the market close, GMT 2.45 pm), WRES shares were trading at GBX 0.41, down by 2.38 per cent against the previous day’s closing price. The stock’s 52-week High is GBX 0.62, and 52-week Low is GBX 0.37. The total market capitalization of the company is around $25.02 million.

Outlook

The company is about to transform itself from a purely mining and exploration company to a composite metal extractor. Its flagship project will start producing tungsten from the second half of this calendar year. The metal is strategic one with high demand in specialized steel manufacturing and welding. However, with the international prices of the metal hovering around $30,000 per metric ton, which is nowhere close to what it was five years ago, the market for this commodity does not seem to be very lucrative.

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