ARC Minerals Ltd (ARCM)

ARC Minerals Ltd is a United Kingdom domiciled mineral exploration and development company. The company has a wide portfolio of mining assets with a focus on the geographies of Eritrea, Slovakia, Zambia and at the Democratic Republic of the Congo. The shares of the company have a listing on the London Stock Exchange in the Alternative Investment Market (AIM) segment. There they trade using the ticker name ARCM.

Trading UpdateÂ

The company on 31st October 2019 came out with a trading update on the first commercial shipment of copper minerals from its Kalaba CSD (Commercial Scale Demonstration) plant facility.

  • The company sold copper concentrate to a Chinese customer based out of Zambia at equivalent prices close to LME spot copper price of a total of 15 tonnes.
  • This initial sale of the concentrates gives evidence of successfully marketing of copper concentrate from the company’s Kalaba CSD plant.

Performance at the London Stock Exchange

Daily share price performance as on 1st November 2019, before the market closed (Source: Thomson Reuters)

On 1st November 2019, at the time of writing the report (before the market close, GMT 12.55 p.m.), ARCM shares were trading on the London Stock Exchange at GBX 3.002.

The stock of the company has a 52-week High of GBX 5.10 and a 52-week low of GBX 2.06. The total market capitalization of the company at the time of writing this report was £23.25 million.

The stock’s volume (before the market close, at the time of writing) stood at 1,242,819. Stock's average traded volume for 5 days was 3,753,367.80; 30 days- 1,922,235.03 and 90 days – 4,165,969.06. The average traded volume for 5 days was up by 94.5 per cent as compared to the 30 days average traded volume. The company’s stock beta was 2.3, reflecting significantly higher volatility as compared to the benchmark index. In last one month, the shares have generated a positive return of 11.7 per cent and 16.8 per cent return on year to date basis.

Outlook

The sale of copper concentrates from the company’s Kalaba small scale demonstration plant will present new opportunities for the business to grow. Future revenue will be experienced through processing and marketing near-surface oxide material.

Gulf Keystone Petroleum Ltd (GKP)

Gulf Keystone Petroleum Ltd is a Bermuda domiciled oil and gas exploration and production company. The company has production and exploration interests in the Kurdistan region of Iraq. The company has two blocks in Kurdistan namely the Shaikan block and the Ber Bahr block which is supported by its office located in Erbil. The company’s office in the United Kingdom provides geophysical, engineering and geological services to the company’s operations in Iraq.

Results Update

The company on 10th September 2019, came out with its interim results for the six months period ending on 30 June 2019.

  • The average production of crude at the Shaikan site for the month of August was 39,269 bopd, underpinning the good work of the workover campaign and facilities de-bottlenecking campaign undertaken at the PF-1 well. The gross production up to 8th of September 2019 averaged 39,921 bopd.
  • The gross production of crude oil (Shaikan site) in H1 FY2019 averaged 29,362 bopd. The average production rates during the first half of 2019 were necessarily affected by wells being temporarily out of commission for workovers and maintenance work, in addition to the planned shutdown of the PF-1 production well to install facilities as part of the company’s 55,000 bopd expansion project.
  • The revenue of the company for the current period was $95.6 million whereas for the first half of 2018 it was $116.2 million. The EBITDA of the company for the period was $59.0 million while for the first half of 2018 it was $61.6 million. The profit after tax of the company for the current period was $24.2 million while for the first half of 2018 it was $26.7 million. The net capital investment undertaken in Shaikan during the six-months period was $32.4 million while in the first half of 2018 the figure stood at $6.9 million. The full year capital expenditure guidance of the company stands at $88 to 104 million net. Cash balance stood at $302.7 million as at 30 June 2019.

Performance at the London Stock Exchange

Daily share price performance as on 1st November 2019, before the market closed (Source: Thomson Reuters)

On 01 November 2019, at the time of writing the report (before the market close, GMT 2.53 p.m.), GKP shares were trading on the London Stock Exchange at GBX 207.50.

The stock of the company has a 52-week High of GBX 277.17 and a 52-week low of GBX 164.75. The total market capitalization of the company at the time of writing this report was £451.07 million.

The stock’s volume (before the market close, at the time of writing) stood at 150,262. Stock's average traded volume for 5 days was 252,478.60; 30 days - 509,100.87 and 90 days - 631,407.94. The average traded volume for 5 days was down by 50 per cent as compared to the 30 days average traded volume. The company’s stock beta was 1.2, reflecting higher volatility as compared to the benchmark index. In last one month, the shares have generated a negative return of 10.2 per cent and 14.2 per cent of a positive return on year to date basis.

Outlook

There is an active work schedule of the company to continue with the Jurassic drilling programme which has been ongoing, the ESP workovers and completion of the de-bottlenecking plan and on track to deliver 55,000 bopd by the second quarter of 2020.

The gross production guidance for 2019 has now been updated to be between 30,000-33,000 bopd, in comparison to the earlier guidance of 32,000-38,000 bopd. The new guidance given by the management of the company takes into consideration the postponement of the ESP workover plan and the planned shutdown of PF-2 in the month of October and the delayed start of the drilling programme.

 

   
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