Volatility Check: KEFI Minerals PLC, BP PLC And Eurasia Mining PLC

  • Nov 13, 2019 GMT
  • Team Kalkine
Volatility Check: KEFI Minerals PLC, BP PLC And Eurasia Mining PLC

KEFI Minerals PLC

KEFI Minerals Plc (KEFI) is a mining company with a focus to maximise shareholders wealth through the development of profitable mines of base metal and gold deposits. The company has acquired many new projects and has been evaluating and claiming many exploration properties since its incorporation in 2006. Since 2008, the company shifted its focus to Arabian-Nubian Shield after starting exploration activities in Saudi Arabia.

KEFI-Recent news

On 12th November 2019, according to the company’s press release, the company intercepted massive sulphides with encouraging copper and gold grades from the first hole drilled Exploration Licence at Hawiah.

KEFI-Q3 FY19 Operational Update (as on 30th October 2019)

This update encompasses the activities of KEFI Minerals (Ethiopia) Ltd, TKGM (Tulu Kapi Gold Mines) Share company in Ethiopia, and G&M (Gold & Minerals Ltd) in Saudi Arabia for the period from 1st July 2019 to 30th September 2019.In Tulu Kapi Gold Project in Ethiopia, as announced on 29th October 2019, the company confirmed the receipt by Tulu Kapi Gold Mines of all the Government licenses and independent consultants’ reports needed for triggering the development of the project and closing the project equity financing. The Minister for Mines and Petroleum of the Federal Democratic Republic of Ethiopia confirmed to the company that the Government is willing to resolve all issue for the early commencement of the Project.

KEFI-Financial Highlights (for the six months ended 30 June 2019)

(Source: LSE)

The company is in the development phase and has not generated any revenue for the current period. The company’s LBT and LAT (loss before tax and loss after-tax) were at £1,695 thousand in the first half of 2019 versus an LBT and LAT (loss before tax and loss after-tax) of £2,393 thousand in the first half of 2018. The basic and diluted loss per share for H1 FY2019 stood at 0.27 pence as against basic and diluted loss per share of 0.71 pence in the first half of 2018.

Since the company is in the development phase, it doesn’t generate any revenues, and all the operations are financed through its cash reserves and grants. The profitability margins have remained in the negative zone for the period. The company operates in a challenging environment which requires continuous investment, sometimes at the cost of profitability, to stay ahead of competitors. The company has entered into strategic partnerships with Ethiopia’s Government and investors from Ethiopia for its Tulu Kapi Project. The company’s Tulu Kapi Project is moving towards production stage, which will generate revenues and cash flows for the company.

KEFI-Share price performance

Daily Chart as at Nov-13-19, before the market close (Source: Thomson Reuters)

On 13th November 2019, at the time of writing (before market close, GMT 12:31 PM), KEFI Minerals Plc were trading at GBX 1.525, down by 5.86 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 2.29/GBX 0.58. Stock’s average daily traded volume for 5 days was 169,081,619.00; 30 days - 40,410,030.10 and 90 days - 18,461,989.94. The company’s stock beta was 1.32, reflecting higher volatility as compared to the benchmark index. The outstanding market capitalisation was around £14.09 million.

BP PLC

BP Plc (BP) is a London-headquartered global energy business with a diverse portfolio across businesses, resource types and geographies, and operations in 78 countries worldwide. The operations of the group are differentiated in four operating segments, namely 1. Upstream, 2.Downstream, 3. Rosneft and 4.Other businesses and corporate.

BP-Recent News

On 13th November 2019, in a press release, the company announced that Nils Andersen has stepped down and resigned as a non-executive director of the company. Melody Meyer will be succeeding him with an immediate effect.

BP-Q3 FY2019 (as on 29th October 2019)

In the third quarter of the fiscal year 2019, the company’s underlying replacement cost profit stood at US$2.3 billion as compared to US$3.8 billion a year ago. The group’s result was impacted by lesser prices, maintenance and weather effects, leading to lower Upstream earnings. A non-cash, non-operating after-tax charge, divestment-related amount of US$2.6 billion led to loss (reported) of US$0.7 billion for the quarter. For the third quarter of the fiscal year 2019, the group’s operating cash flow, excluding Gulf of Mexico oil spill payments, was reported at US$6.5 billion. The group’s Gulf of Mexico payments were reported at US$0.4 billion (post taxation). The company announced a dividend per share of 10.25 cents for the third quarter of 2019. The company suspended the option of scrip dividend for the third quarter of 2019.

In the Q3 of 2019, the company demonstrated the toughness of financial performance, even at lower prices. During the current period, the net debt remained flat. With the receipt of disposal proceeds and growing free cash flow, the company continue to foresee net debt to trend down over time. Further, the underlying effective tax rate for the current quarter was lower than earlier indicated, primarily due to a lower-than-anticipated effect from the Upstream profit mix and higher-than-anticipated estimated Rosneft earnings.

BP-Share price performance

Daily Chart as at Nov-13-19, before the market close (Source: Thomson Reuters)

On 13th November 2019, at the time of writing (before market close, GMT 12:35 PM), BP Plc were trading at GBX 509, down by 0.56 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 583.41/GBX 479.55. Stock’s average daily traded volume for 5 days was 31,236,624.00; 30 days - 34,312,165.70 and 90 days - 33,416,830.34. The company’s stock beta was 1.48, reflecting higher volatility as compared to the benchmark index. The outstanding market capitalisation was around £104.04 billion.

Eurasia Mining PLC

Eurasia Mining Plc (EUA) is a mining company engaged in the production of gold and platinum. The company holds licenses in Central Urals based West Kytlim and Monchetundra in Russia’s Kola Peninsula. The company also maintains interest in non-core mining solutions which includes Kyrgyzstan based Kamushanovsky Uranium Project.

EUA-Financial Highlights – H1 Financial Year 2019 (30th June 2019, GBP)

(Source: LSE)

In the first half of the financial year 2019, driven by a decline in the sales of platinum and other metals for the period, the company’s revenue declined to GBP 13,316 as against GBP 447,545 in H1 FY2018. Due to lower revenue generated for the period, the company reported a gross loss of GBP 2,993 in H1 FY2019 versus a gross profit of GBP 38,171 in H1 FY2018. The company’s PBT (Profit before tax) stood at GBP 69,854 in H1 FY2019 versus an LBT (loss before tax) of GBP 972,243 in H1 FY2018. The company’s PAT (Profit after tax) stood at GBP 24,481 in H1 FY2019 versus a LAT (loss after tax) of GBP 972,243 in H1 FY2018. The company reported a basic and diluted loss per share of 0.004 pence in H1 FY2019 versus a basic and diluted loss per share of 0.02 pence in H1 FY2018.

The company had shown decent growth in the financial performance for the first half of the financial year 2019. Although the company’s top-line performance had declined, the bottom-line performance has improved for the period. The economic environment in which the company operates is uncertain and is expected to remain the same in the near term too. The company will be impacted by the uncertainties created by the ongoing Brexit, as it will impact the company’s supply chain and increase the level of political uncertainty in the United Kingdom.

EUA-Share price performance

Daily Chart as at Nov-13-19, before the market close (Source: Thomson Reuters)

On 13th November 2019, at the time of writing (before market close, GMT 12:38 PM), Eurasia Mining Plc was trading at GBX 2.73, down by 5.86 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 4.00/GBX 0.40. Stock’s average daily traded volume for 5 days was 183,534,397.20; 30 days - 162,673,699.27 and 90 days - 56,842,140.70. The outstanding market capitalisation was around £76.30 million. The stock has a negative beta which means its negatively correlated with the benchmark index.

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