Top-News of the week:
Sibanye Gold reports strong financial results
A couple of days ago Sibanye Gold reported strong financial results for the six months ended 30 June 2016, driven largely by a higher prevailing rand gold price, but underpinned by solid operational delivery from both the Gold and Platinum divisions
Sibanye again demonstrated its commitment to paying an industry leading dividend, declaring an interim dividend of R785 million (85 cents per share). This compares with an interim dividend of R91 million (10 cents per share) declared in H1 2015, and the total dividend for the year ended 31 December 2015, of R917 million (100 cents per share).
The highly leveraged nature of the gold operations was clearly evident during the period: a 31% increase in the average rand gold price to R603,427/kg and a 5% increase in gold production resulted in operating profit from the Gold Division increasing by 125% to R5.3 billion (US$346 million) from R2.4 billion (US$199 million) for the comparable period in 2015. The Platinum Division, which was incorporated from 12 April 2016 following the conclusion of the Aquarius Platinum Limited acquisition, delivered record quarterly production of 92,773oz (4E), resulting in an attributable operating profit of R72 million (US$5 million).
Normalized earnings of R2,152 million (234 cents per share) for the six months ended 30 June 2016, was, as a result, R1,909 million higher than the R243 million (27 cents per share) reported for the comparative period in 2015.
Therewith, Sibanye Gold was able to strengthen its position as one of the ten largest gold producers worldwide. The analysts form sbg securities have the same opinion and therefore rated the Sibanye stock with a “buy” and a course aim of 75.00 ZAR.
News: Sibanye Gold - Profits boosted by higher earnings
Video: Sibanye Gold company presentation English
Market Watch:
Precious Metals with a weak August – No physical delivery at XETRA-Gold at all?!
Precious Metals still reside at summer holiday and search scavenge for rising prices. After a nearly continuous rise since the beginning of the year, the August marked the first month since December 2015, where precious metals were ruffled. Gold lost 3.1%, silver and platinum 8.2% each and Palladium 5.6%. The main reason for this week August can be seen in the outflows of ETFs. But that is no reason to stick the hand in the sand, because the months from June to August traditionally are weak months for precious metals. At least the July didn’t show this trend this year and instead showed a rear up at gold, silver, etc.
In opposite to that, the air at XETRA-gold seems to become completely blown off. As several German media platforms reported in the last days, the “promise” to get your XETRA-gold physical delivered, seems not to apply anymore. An investor who wanted to get his XETRA-gold portfolio physical delivered has been told by Deutsche Bank, that this “service” is no longer been provided from “business reasons”. We ask ourselves: Why that? No more physical gold available? Only physical gold is physical gold, the rest is only paper and not more than just a, right: “promise”!
Company News:
EnWave again in the black in Q3/2016
A few days ago, EnWave reported the Company’s consolidated interim financial results for the third quarter ended June 30, 2016. The Company reported consolidated revenue of CA$5,224,000, and a consolidated net income from continuing operations of CA$113,000 for the third quarter of fiscal year 2016.
This quarter’s positive net income was the second consecutive quarter of positive earnings for the Company. Revenues materially increased due to the continued growth in sales of royalty-bearing Radiant Energy Vacuum (“REV™”) machines, and the continued expansion and accelerated distribution of Moon Cheese® through EnWave’s subsidiary, NutraDried LLP.
As expected, EnWave seems to be able to be in the black consistently, which lets the company shine in a bright(er) light.
News: EnWave Q3-2016 -profitable
Inca One Gold closes first tranche of recent financing and drastically reduces its debts + New, experienced chairman
Last week, Inca One gold announced that it has closed the first tranche of its previously announced non-brokered private placement for gross proceeds of CAD$3.25 million by the issuance of 13.0 million units at a subscription price of CAD$0.25 per Unit.
In addition, the Company also announced that it has received approval by the TSXV for the required settlement agreements with its debtholders. The Debt Settlement addresses CAD$13.7 million of the Company’s long and short term debt and related unpaid interest which converted as follows: i) CAD$8.0 million was settled into 20.3 million common shares plus 9.2 million warrants, of which 6.9 million common shares plus 5.9 million warrants was settled to insiders; ii) CAD$3.8 million was settled into interest bearing debenture agreements with deferred payment terms or non-interest bearing repayment notes; iii) CAD$1.8 million was settled into a combination of warrant deposits and contingent debt; and iv) 1.1 million warrants were issued to select parties relating to the warrant deposit and certain other settlement requirements.
Furthermore, the company announced the appointment of Mr. Bruce Bragagnolo, LLB as the Chairman of its Board of Directors. Mr. Bragagnolo is the co-founder and former Chief Executive Officer of Timmins Gold Corp. an emerging intermediate, Mexican-focused gold producer. Mr. Bragagnolo is also the co-founder and the former CEO of Silvermex Resources Ltd., a silver explorer which was acquired by First Majestic Silver in 2011 for a market capitalization of $120 million.
With a strenuous effort, Inca One Gold pulled itself out of the mud and now stands on stable ground again, to be able to get back in the black by achieving a consistently gold production of 100 tons of ore per day. This is some work for someone with Mr. Bragagnolo’s qualifications and experience.
News 1: Inca One with debt solution and PP
News 2: Bruce Braganolo Chairman Inca One
Advantage Lithium completes acquisition of Clayton Valley options
Advantage Lithium recently announced, that the Company has completed its acquisition of an option to acquire an interest of up to 70% in three Nevada lithium projects, 50% in two Nevada lithium projects and 100% of certain water rights in the Clayton Valley from Nevada Sunrise Gold Corporation (“Nevada Sunrise”).
At closing, the Company paid CA$500,000 cash and issued 2,071,447 common shares to Nevada Sunrise. Additional shares and exploration expenditures are required in order for the Company to earn its interests in the properties.
A big step for Advantage Lithium towards one of the most promising lithium projects in the Clayton Valley and the inly water rights besides the Albemarle one’s.
News: Advantage completes Option acquisition
Video: AAL company presentation
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