News Updates On LSE listed SolGold Plc, Range Resources Limited and Fresnillo Plc

News Updates On LSE listed SolGold Plc, Range Resources Limited and Fresnillo Plc

SolGold Plc

SolGold is a United Kingdom domiciled mineral exploration company with interests in the discovery and exploration of gold and copper mineralization. The company’s management team was recognized in 2018 by the "Mines and Money" Forum for their excellence in the industry and continuous strive to deliver its objectives most efficiently to optimally cater to interests of the shareholders. The company is the leading mining and exploration license holder in the country of Ecuador. It possesses gold-mineral rich section of the Andean Copper Belt which is highly prospective.

The company follows the best international practices in its operations.  It is committed towards its shareholders and the enhancement of the value of their holdings, while simultaneously creating economic and social benefits to local communities, whereby a healthy and safe workplace is created which minimizes the environmental and social impact of its projects.

The shares of the company are listed on the London Stock Exchange in the main market segment where they trade with the ticker name SOLG.

Exploration Update

The company on 23 October 2019 came out with an exploration update from the company's regional exploration activities from the Cisne Loja Project based in southern Ecuador, which is wholly owned by its subsidiary Green Rock Resources S.A.

  • The company in the report states that it has discovered new mineralized outcrops at the Celen Prospect which indicates towards a large new copper gold rich polymetallic porphyry system. Extensive outcrops of quartz-magnetite-chalcopyrite in porphyry style veining have been discovered at the site.
  • The porphyry style veins discovered at the site contain copper and gold in 1:1 ratio with proportionate silver and molybdenum traces indicating towards a strong Andean porphyry copper-gold system. The Proximal fracture mineralization discovered at the site is rich in carbonate type minerals and diagnostic copper oxide and, among others, azurite, neotocite, malachite returning extremely high copper quantities.

The Celen Prospect is with the7 km vicinity of the SolGold Plc’s mineralised Cuenca Loma silver-gold epithermal prospect.

Stock performance at the London Stock Exchange

Price Chart as on 23 October 2019, before the market close (Source: Thomson Reuters)

On 23 October 2019, at the time of writing the report (before the market close, GMT 2.12 PM), SOLG shares were trading on the London Stock Exchange at GBX 20.832.

The stock has a 52-week High of GBX 41.89 and a 52-week low of GBX 16.18. The total market capitalization of the company was £386.40 million.

Outlook

The discovery of these copper-gold bearing minerals at Celen, which is encompassed over an area of two square kilometers has all the classical geochemical & geophysical signatures of a big porphyry system emphasizing the prospectively and unexplored nature of the area.  The Celen copper gold exploration target is located just 5 km south of the epithermal gold field which the company had discovered at Cisne Loja site, encompassing over an area of 3.75 square kilometers. The company is hopeful about the discovery of both copper and gold bearing minerals at the site.

Range Resources Limited

Range resources limited is a United Kingdom domiciled company with an interest in oil and gas exploration. The company is spread out internationally with oil and gas exploration and production projects and oilfield service businesses located in Trinidad and Indonesia.

The shares of the company have a listing on the AIM (Alternative Investment Market) segment of the London Stock Exchange where they trade with the ticker name RRL.

Sale agreement for drilling rigs

The company on 23 October 2019 came out with a news update that it has entered into a sale agreement with Wilson Energy Services Inc for the sale of four of its drilling rigs and other associated machinery for a consideration of USD $3.6 million.

  • The sale is being affected by Range Resources Drilling Services Limited which is a wholly owned subsidiary of Range Resources Limited and is registered in Trinidad and Tobago.
  • The Buyer Wilson Energy Services Inc may either buy the rigs in their own name or through a nominee or an affiliate or subsidiary of Wilson Energy Services Inc, which will have to be incorporated in Trinidad and Tobago before the transaction could be completed.
  • Both the parties have agreed that the long stop date for the Transaction is 8 November 2019, Post which this agreement will be deemed as invalid.
  • The carrying asset value of these four rigs (No. 16, 17, 18 and 19 which are up for sale) as on 30 June 2019 in the company’s books is US$17,361,885 and the estimated loss before tax attributable to the company on these rigs for the year ended 30 June 2019 is US$2,155,488.

Stock performance at the London Stock Exchange

Price Chart as on 23 October 2019, before the market close (Source: Thomson Reuters)

On 23 October 2019, at the time of writing the report (before the market close, GMT 2.28 PM), RRL shares were trading on the London Stock Exchange at GBX 0.0365.

The stock has a 52-week High of GBX 0.3 and a 52-week low of GBX 0.01. The total market capitalization of the company was £3.40 million.

Outlook

Range Resources Drilling Services Limited has been experiencing challenges in winning new service contracts plus the company is also working towards the disposal of its Trinidad upstream asset. The company for a while has been actively exploring measures to streamline its operations and costs. The planned sale of these four oil drilling rigs will not only streamline the company’s assets and liabilities but will bring in much needed liquidity which is essential for the current state of operations of the company.

Fresnillo Plc

Fresnillo plc is the world's largest primary silver producer and Mexico's largest gold producer. The company  has seven operating mines, all of them in Mexico - Herradura, Soledad-Dipolos1, Noche Buena and San Julián (Phase I and II), Fresnillo, Saucito, two development projects - the Pyrites Plant at Fresnillo and Juanicipio, Ciénega (including the San Ramón satellite mine), and three advanced exploration projects - Orisyvo, Las Casas Rosario & Cluster Cebollitas and Centauro Deep, as well as a number of other long-term production and exploration prospects.

The company also has mining licenses and exploration projects in Mexico, Chile and Peru.

The shares of the company have a listing on the London Stock Exchange in the main market segment, where they trade with the ticker name FRES. The shares of the company are constituents of the FTSE 100 index.

Production Report

The company on 23 October 2019 came out with its production report for the third quarter of 2019.

  • The third quarter silver production of the company stood at 13.283 moz (including Silverstream) which is down by 7.9 per cent vs. second quarter of 2019 production figures mainly on account of lower ore grade at the Saucito and San Julián Disseminated Ore Body (DOB).
  • The third quarter gold production of the company stood at 209.8 koz, which is down by 5.2 per cent vs. the second quarter 2019 production figures mainly on account of lower ore grade at Herradura.
  • The third quarter production of by-product lead increased by 19.3 per cent and 19.0 per cent vs. second quarter 2019 production figures  and third quarter 2018 production figures, respectively, on account of  higher ore grade and ore throughput at the Fresnillo site and a higher ore grade and improved recovery rate at the Ciénega site .

Stock performance at the London Stock Exchange

Price Chart as on 23 October 2019, before the market close (Source: Thomson Reuters)

On 23 October 2019, at the time of writing the report (before the market close, GMT 3.50 PM), FRES shares were trading on the London Stock Exchange at GBX 635.0.

The stock has a 52-week High of GBX 1028.00 and a 52-week low of GBX 570.00. The total market capitalization of the company was £4.71 billion.

Outlook

For the full year of 2019 the gold and silver production of the company are expected to be on the lower end of the management guidance ranges for the year of 55-58 moz for silver and 880-910 koz for gold respectively. However, the higher volume of minerals processed at the Fresnillo site combined with the higher grades produced at the Saucito site and at the Fresnillo site are expected to result in a higher overall production figures of silver for the fourth quarter. The company’s 13th leaching pad at the Herradura site was also completed during this quarter; this facility will help in the faster speed of recovery of product and is expected to result in a higher overall fourth quarter gold production.

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