Avocet Mining (LON:AVM) has confirmed it has held talks over its Tri-K asset in Guinea with Managem SA, a Moroccan mining group listed on the Casablanca Stock Exchange.
Avocet notes recent press speculation regarding the interest of Managem in the asset and confirms the company has held discussions with several interested parties, including Managem SA, but that negotiations remain ongoing and no transaction has been concluded.
Avocet has been considering all options to fund the development of the Tri-K project since the submission of its feasibility study in September 2013.
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Green Dragon Gas's (LON:GDG) revenue decreased fell to US$12.1 million in the six months to the end of June (H1 2015: US$16.8 million) due to an approximate 20% fall in gas prices in and a 7% decline in the RMB/US dollar exchange rate period on period.
Cash from operations increased to US$7.7 million (H1 2015: cash used in operations US$0.8 million).
Other financial highlights:
- Cash from operations ahead of full year 2015 run rate of US$12.5 million
- Gross revenue per mcf including subsidy income of US$7.3/mcf (full year 2015: US$10.0/mcf)
- Net loss for the period of US$4.6 million (H1 2015: US$1.4 million)
- Investment in fixed assets of US$6.1 million (H1 2015: US$20.4 million)
- Net assets of US$677.2 million (December 2015: US$697.4 million)
Founder and chairman Randeep S. Grewal said: "We are pleased to announce our interim results for 2016. We have continued to focus on infrastructure on our GSS operated block where we have seen a continued increase in gas sales volumes.
"We have benefited from the clean energy policy set out by the Chinese Central Government that saw the cash subsidy paid for gas production increase in 2016 to US$1.31/mcf with additional local subsidies of US$0.44/mcf totalling $1.75/mcf, support that we expect to continue.
"This has partially compensated for the gas sales price reduction we have seen in China during the period. In accordance with our objectives, our focus has been on infrastructure rather than drilling in H1 2016.
"We have continued the diligent connection of wells to sales infrastructure and are pleased to now have 100 wells, including 56 LiFaBriC wells, connected and producing gas for sale. The system back pressure, which was at approximately 75kpa at year-end 2015, has been reduced to 25kpa at the half year 2016, resulting in increased gas sales volumes.
"The decrease in such back pressures will enable us to increase the sales to produced gas ratio within GSS block, a key Company objective for the year.
"Furthermore, the increase in wells connected and the progress made on infrastructure will form the basis for the continued growth in sales volumes and, importantly, will inform our approach to the completion and connection of future wells on GSS.
"GCZ production remains on track with expectations and the Overall Development Plan is expected to be filed with the NDRC shortly. We expect such ODP to be approved prior to year-end and will form the basis to further development in this commercial block in 2017.
"We are pleased to see GGZ exploration activities conclude and the block move into the development phase. The ODP for this block is expected to be concluded in 2017 following the reserve certification expected in Q1 2017.
"In light of the progress made on all the key objectives discussed during the Capital Market Day in April, the Company is considering a range of farmout, debt and equity options to pursue its development, discretionary capex and financing plans for 2017."
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Tri-Star Resources (LON:TSTR) has narrowed its H1 pretax loss to £0.9m, from a loss of £1.6m.
"Activity during the first half has focussed on the continued development of the Oman Antimony Roaster Project ("OAR").
"The OAR is being developed by Strategic & Precious Metals Processing LLC ("SPMP"), an Omani company. The OAR is being built by SPMP in Sohar, Oman. Tri-Star has a 40% interest in SPMP.
"The OAR has continued to show good progress in 2016. SPMP's most notable developments announced to date include: the strengthening of its management team, confirmation that the project is now entering the procurement and implementation phase, and the strategically important and exciting inclusion of a revenue-enhancing gold plant within the overall specification for the facility.
"Tri-Star will continue to keep the market updated with developments in relation to this crucial project."
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The sector's biggest riser was Patagonia Gold (LON:PGD) - up by more than 24.4% in late trading. The biggest fallers were Amur Minerals (LON:AMC) and Tertiary Minerals (LON:TYM) - both down by more than 9.4%
(LON:AMC) Amur Minerals Corporation share price was -0.32p at 3.06p
(LON:AVM) Avocet Mining PLC share price was -1.75p at 88.75p
(LON:BEM) Beowulf Mining PLC share price was 0p at 4.25p
(LON:BKY) Berkeley Energia Ltd share price was -0.75p at 47p
(LON:CEY) Centamin PLC share price was +1.25p at 149.25p
(LON:CHL) Churchill Mining PLC share price was -0.5p at 29.63p
(LON:CZA) Coal of Africa Ltd share price was +0.01p at 3.19p
(LON:FDI) Firestone Diamonds PLC share price was 0p at 52.25p
(LON:FRES) Fresnillo PLC share price was +31.5p at 1808.5p
(LON:GDG) Green Dragon Gas Ltd share price was -3.5p at 224p
(LON:GEMD) Gem Diamonds Ltd share price was +1p at 121p
(LON:HOC) Hochschild Mining PLC share price was +10.4p at 295.5p
(LON:KMR) Kenmare Resources PLC share price was +17.38p at 323.38p
(LON:PGD) Patagonia Gold PLC share price was +0.53p at 2.68p
(LON:TSTR) TriStar Resources PLC share price was +0.02p at 0.13p
(LON:VED) Vedanta Resources PLC share price was +28.75p at 593.75p