"It is still clearly too early to predict the full repercussions of the vote to leave the EU. The events of the past couple of days have been seismic enough with the resignation of the Prime Minister, the prospect of another Scottish independence referendum and the disintegration of the Shadow Cabinet. There is no timetable for Brexit and there is speculation that a compromise deal may be sought or even that the Scottish Parliament could veto the whole thing. None of this is likely to be resolved quickly and there is a threat ..." Singer note out this morning on research tree
"In the wake of the EU referendum result, our view of the UK chemicals sector remains relatively upbeat. The companies we cover (Croda, Elementis, Scapa, Synthomer, Victrex, Zotefoams) generally have limited domestic exposure and plenty to gain on transactional and/or translational FX exposure. The main beneficiary of FX is Victrex, where as a rule of thumb, we would expect a 10% sterling devaluation to increase Group PBT by 10%, all else being equal. An isolated period of disruption/ contraction in the UK could therefore be..." Broker note out from N1Singer on research tree
"In the wake of the EU referendum result, our view of the UK chemicals sector remains relatively upbeat. The companies we cover (Croda, Elementis, Scapa, Synthomer, Victrex, Zotefoams) generally have limited domestic exposure and plenty to gain on transactional and/or translational FX exposure. The main beneficiary of FX is Victrex, where as a rule of thumb, we would expect a 10% sterling devaluation to increase Group PBT by 10%, all else being equal. An isolated period of disruption/ contraction in the UK could therefore be..." Singer note just out on research tree
"In the wake of the EU referendum result, our view of the UK chemicals sector remains relatively upbeat. The companies we cover (Croda, Elementis, Scapa, Synthomer, Victrex, Zotefoams) generally have limited domestic exposure and plenty to gain on transactional and/or translational FX exposure. The main beneficiary of FX is Victrex, where as a rule of thumb, we would expect a 10% sterling devaluation to increase Group PBT by 10%, all else being equal. An isolated period of disruption/ contraction in the UK could therefore be..." Singer note out this morning on research tree
"This is a very significant capital cost reduction and clearly good news for Sirius shareholders, although $2.91b is still a massive funding requirement for a company of Sirius' size. Management hopes that by splitting the capex into two stages the quantum is somehow reduced, but the fact is, it needs $2.91bn of funding to get the mine to profitability in year 7. That said management is planning to fund Stage 1 with 50% equity and 50% junior debt plus other instruments (e.g. royalty), and to fund Stage 2 with 100% senior debt. So splitting the funding into 2 parts is a valid approach, at least with regards its negotiations with potential funders. As things currently stand, 50% of $1.09bn is c £0.39bn (1.4 GBP:USD), not far off Sirius' current market value, but not an impossible feat. Management can reasonably argue that with an NPV10 of $15.3bn (£11.0bn) and EBITDA in year 9 of $1.8bn, £0.39bn for 50% of the company is a very attractive investment." Beaufort note out this morning on research tree
"In light of the UK voting for a Brexit, we expect gold to provide a haven for investors. Coupled with sterling weakness, we see upgrades likely for all gold producers in the near term. We appreciate Centamin has been a very strong performer so far in 2016 on solid production growth and a clear business plan to increase production to above 500koz in the near future. Alongside Randgold and Acacia, Centamin is well represented in portfolios seeking gold exposure. We now anticipate gold to be well supported in the near term and along with weaker sterling, we believe further strength is likely along with stable growth in production, an improving cost profile, a solid balance sheet and attractive free cash flow yields, which serve to provide us with longer term optimism. We believe that Centamin remains a credible acquisition target and an eventual resolution to the legal challenges may be the catalyst for further interest in this regard." Panmure note out this morning on research tree
"In light of the UK voting for a Brexit, we expect gold to provide a haven for investors. Coupled with sterling weakness, we see upgrades likely for all gold producers in the near term. We appreciate Randgold retains an almost sacrosanct place in many portfolios and given the outperformance to date, we do not expect that to change in the near term, given the lack of viable liquid alternatives. In light of the anticipated strength in the gold price and inevitable weakness in Sterling..." Panmure published a note this morning from research tree
"We believe the market has overreacted to Hill & Smith’s exposure to the UK, which provided 47% of operating profits in 2015. This is protected by committed spending on roads and infrastructure projects. At the same time, US profits, which accounted for 45% of 2015 profits, will benefit substantially from translation into sterling, should the current pressure on the cable continue." frm a Panmure broker note out this morning on research tree
Northland note out this morning, taken from research tree "SalvaRx announced Final Results for the year ended 31 December 2015. On 22 March 2016, SalvaRx began trading on AIM following completion of the reverse takeover of 3Legs Resources plc and concurrent name change to SalvaRx Group plc. SalvaRx now has exposure to three cancer immunotherapy programmes which are funded through early clinical trials... The market for cancer immunotherapies is forecast to expand to over $80bn by 2020."
Broker Northland note on research tree... "Mariana Resources has two major milestones on the horizon at its 30%-owned Hot Maden gold-copper project. The first will be the completion of the updated mineral resource estimate that is expected to see the mineral resource estimate increase beyond the 3moz Au eq. at an ultra-high grade of 11.2g/t Au eq. The second will be the preliminary economic assessment (PEA) that will give us the first impression of the projects economics and metrics."