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Summary
- Beowulf Mining announced the validation of high-grade magnetite concentrate at Kallak North by Dr Bo Arvidson.
- The high-grade magnetite could be used as a feedstock in fossil-free ore based steel making plant in Sweden.
- Galileo Resources PLC wholly acquired Africibum Co Pty that owns tenements in North East Kalahari Copper Belt project in Botswana.
- The Company announced the start of an electromagnetic survey over two tenures at the Kalahari Copper belt.
Beowulf Mining PLC (LON:BEM) and Galileo Resources PLC (LON:GLR) are two basic resource stocks listed on the FTSE AIM-All Share index. Shares of BEM and GLR were up by around the 19.98 percent and 12.44 percent, respectively from the previous closing price (as on 17 September 2020, before the market close at 12:40 PM GMT+1). The share price of both stocks jumped as BEM announced the validation of high-grade magnetite at Kallak North and GLR stated that it had started the electromagnetic survey of Kalahari Copper belt.
Beowulf Mining PLC (LON:BEM) - High-grade magnetite concentrate would have 71.5 percent iron
Beowulf Mining PLC is a UK based company that is engaged in the exploration and development of projects in Sweden, Finland and Kosovo. The Company has an interest in Kallak North in Sweden, it wholly owns Fennoscandian Resources that is into graphite business, and it owns 46.1 percent stake in Vardar Minerals limited that is focused on metals in the Balkan region.
Portfolio of Beowulf Mining
(Source: Company website)
Potential of products from Kallak North
On 17 September 2020, Beowulf Mining announced that Dr Bo Arvidson performed the market assessment of the Kallak North deposit and found immense product potential. The high-grade magnetite concentrate of 71.5 percent iron with a low amount of harmful content was found in the test work. The recent discovery makes the product of Beowulf Mining best in Sweden as the next best product has 70.7 percent iron and it is produced by LKAB, the state-owned Swedish iron ore company.
The high-grade magnetite concentrate at Kallak would help in steel manufacturing as it would lower the carbon emission, enhance energy efficiency in the downstream process and reduce waste. The inherent energy content of the magnetite has the potential to lower the energy demand in steel manufacturing. Globally, the feedstock used for steel manufacturing has 80 percent hematite and 20 percent magnetite. The better quality of feedstock would improve efficiency and reduce waste, and it would help in environment protection.
H1 FY2020 results (ended 30 June 2020) as reported on 28 August 2020
In H1 FY20, the Company reported a loss per share of 0.06 pence against a profit per share of 0.01 pence reported in H1 FY19. As on 30 June 2020, Beowulf Mining had cash of £620,940. During the reported period, the Company awarded the drilling contract to Kati Oy for Kallak, and the programme is scheduled to start in autumn 2020. In June 2020, the Company discovered gold anomaly at Majdan Peak, and the samples depict 0.36 grammes per tonne of gold. In August 2020, Beowulf Mining secured loan of £1.0 million that would be used for exploration work at Kosova.
Share Price Performance Analysis
1-Year Chart as on September-17-2020, before the market close (Source: EODHD/Others, Thomson Reuters)
Beowulf Mining PLC's shares were trading at GBX 5.99 and were up by close to 19.98 percent against the previous closing price (as on 17 September 2020, before the market close at 12:40 PM GMT+1). BEM's 52-week High and Low were GBX 8.70 and GBX 3.00, respectively. Beowulf Mining had a market capitalization of around £30.11 million.
Business Outlook
After the validation of the products at Kallak, Beowulf Mining is confident over the better performance in the future. Sweden is focused on sustainable mining, and the government has started the HYBRIT plant, which is a joint venture between steel manufacturer SSAB, mining company LKAB and energy company Vattenfall. The main goal of the collaboration is to set up fossil-free ore based steel making process, which would be the first in the world. Beowulf Mining is hopeful that its high-grade magnetite would have massive potential as the new fossil-free steel production would require high-quality feedstock.
Galileo Resources PLC (LON:GLR) - Issued 42 million new shares for the acquisition
Galileo Resources PLC is a UK based metal and mining company. The business model of the Company is to acquire a stake in major mining companies. It has an interest in Star Zinc project, Kashitu project, Kalahari Copper Belt project and Limpopo Mobile Belt project. Galileo Resources is listed on the FTSE AIM All-Share index.
Structure of the Galileo Resources PLC
(Sources: Company website)
Update on Kalahari Copper Belt
On 17 September 2020, Galileo Resources announced that it had started electromagnetic survey over two tenures at the Kalahari Copper belt. The survey is being performed through NRG's Xcite™ Airborne Electromagnetic (AEM) system. On 15 September 2020, Galileo Resources announced the conditional acquisition of an interest in North East Kalahari Copper Belt project in Botswana. It acquired the 100 percent stake in Africibum Co Pty.
As a part of the transaction, it got five mining tenements and two mining tenements application in North East Kalahari Copper Belt project. To complete the deal Galileo Resources issued 42 million new shares at 0.779 pence per share, of which 35 million shares were issued to Africibum, and 7 million shares were issued to one of the sellers.
The new acquisition would include Quirinus copper-silver prospect. The previous explorer had already performed three-hole drilling intersected at 600 metres that include 1.7 percent copper and 13 grammes per tonne of silver at 4 metres and 0.9 percent copper and 14 grammes per tonne of silver. Copper-in soil anomalies were identified over a total strike length of 13.4 kilometres. Copper and silver have been already discovered at Khoemacau Project, which is owned by Cupric Canyon Capital and the acquired tenement lies within 15 kilometres of Khoemacau Project.
Portfolio of Galileo Resources
(Sources: Company website)
Share Price Performance Analysis
1-Year Chart as on September-17-2020, before the market close (Source: EODHD/Others, Thomson Reuters)
Galileo Resources PLC's shares were trading at GBX 0.8995 and were up by close to 12.44 percent against the previous closing price (as on 17 September 2020, before the market close at 12:40 PM GMT+1). GLR's 52-week High and Low were GBX 1.14 and GBX 0.23, respectively. Galileo Resources had a market capitalization of around £6.15 million.
