MOVERS OF WEDNESDAY 28 OCTOBER 2020

Francesca Morgan
Market Report
16:17, 28th October 2020

KAZ Minerals (LON:KAZ) FOLLOW shares jumped 9.55% to 625.3p with £3bn buyout offer


The copper company focused on large scale, low cost open pit mining in Kazakhstan said its two largest shareholders have made a £3 billion all-cash buyout offer for the company.

 

Nova Resources, which is owned by KAZ chairman Oleg Novachuk and Director Vladimir Kim, will pay 640p per KAZ share, representing a 12.1% premium to yesterday’s closing price.


KAZ said that members of its independent committee intended ‘unanimously to recommend that shareholders vote in favour of the takeover at a meeting to be held in December or early January.’ The acquisition is currently expected to become effective in the first half of 2021.


Nova Resources have said that KAZ’s long term development of its flagship project Baimskaya would be best undertaken away from public markets as a private company.

The Baimskaya project is one of the world's most significant undeveloped copper assets with the potential to deliver a strong return on investment, subject to a number of risks.

These include project delivery risks, demand and supply dynamics for copper, future prevailing prices for copper and gold, and a reliance on the Russian government to make the right investments in new infrastructure for the project, the company outlined to investors.

The development of Baimskaya, a copper deposit in far eastern Russia acquired in 2018 in a selloff worth $900 million, is set to cost $7 billion and take around seven years to complete.

‘The benefits are obvious,’ said Shares Magazine, alluding to copper demand which is forecast to soar in the next few years as renewable energy and electric vehicles grow.

“Driven by the current market uncertainty and the corporate circumstances of sequential development projects, we believe that KAZ Minerals' long term interests would be best served as a private company,” said Oleg Novachuk, Chairman of Nova Resources.

KAZ price chart

Chariot Oil & Gas (AIM:CHAR FOLLOW) shares rose 23% to 5.87p as it sees interest at Anchois


The Atlantic focused energy company has received an expression of Interest Letter to debt finance the Anchois Gas Development Project in the Lixus Offshore Licence, Morocco.


The Africa Finance Corporation, a pan-African financial institution, confirmed that it would be interested in financing the development of the Anchois discovery and future discoveries.

 

Chariot has also received a non-binding expression of interest for further lending for the development of the Anchois discovery from an unnamed multinational investment bank.


Both expressions of interest take into account the estimated capital expenditure required to bring the development online, which is expected to be in the region of US$300-500 million.


They also identify Lixus as being an important strategic asset, with strong ESG credentials, that have the potential to help Morocco transition to a low carbon economy, as it seeks to satisfy an anticipated doubling in domestic demand for energy over the next 20 years.

 

“Both Expression of Interest Letters further endorse our view that the Anchois development is a high value project, with the potential to deliver near term cash flows to Chariot and also transform Morocco's power sector,” said Adonis Pouroulis, Acting CEO of Chariot.

CHAR price chart

Jaywing (AIM:JWNG FOLLOW) continues higher with shares up 15.38% to 5.25p


The UK data science specialist recently appointed two senior members of staff; former strategic planning director at Brass, Phil Stott and Lead Risk Consultant, Paul Monaghan after a difficult year for the business which saw lower revenues for the 2020 financial year.


“It has been a difficult year for the industry, with uncertainty widespread, however the future looks bright for Jaywing, with many exciting developments happening and I am excited to be a part of it,” said Stott, who will head client financial and professional services.


In a trading update released in August 2020, Jaywing told investors that it expects to report net revenue for the year ended 31st March 2020 of approximately £24m (2019: £29.8m). 

 

At 31st March 2020, net debt was £5.7m (2019: £5.0m).  The Company said it has also continued its process of restructuring and realigning the business more closely to its clients and its service offerings, following the appointment of Andrew Fryatt as CEO in March 2020.


Jaywing said that while the economic impact of Covid-19 has resulted in a year-on-year revenue decline and significant market uncertainty remains, actions taken to preserve cash and profitability makes it ‘well-positioned’ to benefit as global economic activity recovers.


‘Whilst there remains considerable uncertainty in markets generally, the Company believes that it is well positioned to benefit as economic activity recovers,’ it told investors in August.


Jaywing also told investors that it has received approval from AIM under its Covid-19 temporary measures for a three-month extension to the deadline for the publication of its full results which are now expected to be published before the end of November 2020. JWNG price chart

Mirriad advertising (AIM:MIRI FOLLOW) shares jumped 15.15% to 38p with tier 1 partnership


The technology firm has signed a new two-year commercial agreement with one of the largest and best-known North American-based content producers and distributors.

 

The deal with the unnamed partner will enable Mirriad to develop its in-video advertising on entertainment series and expand its in-video advertising into additional content over time.


Stephan Beringer, CEO, said the “breakthrough” commercial agreement is with a tier one partner and is “yet another indicator of how our technology is increasingly recognised as a major game-changer by the biggest global players in the world of media and entertainment.”


He said the group’s ability to finalise the agreement amid a pandemic reflects the compelling proposition of the technology which he said the Mirriad team continues to deliver effectively.


"This agreement is a decisive step forward in expanding Mirriad's US and global footprint, opening up some of the most exciting content imaginable in the world's biggest advertising market to our patented in-video advertising technology,” he told investors this morning.

 

While there is no immediate income linked to the signed agreement, terms and conditions for doing business have been laid out. It covers both network syndication and streaming, allowing the unnamed partner to expand the use of Mirriad's technology to any of its US platforms.MIRI price chart

Carnival (LON:CCLFOLLOW) shares fell 8.81% to 825.3p as cruise industry takes hit


Due to limitations in place in some European countries and evolution of the COVID-19 crisis, the Italian company announced updates to its upcoming cruises for winter 2020-2021.


The news follows global warnings, including one from the U.S. Centers for Disease Control (CDC) which updated its warning last week to travelers to defer all cruise travel worldwide.


This year, international travel restrictions caused by the coronavirus are forcing cruise companies to delay most tours until 2021, the BBC reported on the sector last week. 


This morning the group said Costa Cruises, which is the leading cruise line in Europe and part of Carnival Corporation, said its brand's flagship, Costa Smeralda, powered by liquefied natural gas (LNG), will extend her current cruises only in Italy until the end of February 2021.


Carnival also announced that its Costa Favolosa cruises in the Caribbean are canceled and the ship will return to operate from April 2, 2021, with mini-cruises in the Mediterranean while its 2021 World Tour of Costa Deliziosa is also canceled to recommence again in 2022.


In addition, the group said its cruise line Princess Cruises is now extending its pause in operations for cruises departing from Australia and New Zealand through May 31, 2021.


The group said guests will receive a refund of future credit equivalent to 100% of the cruise fare paid plus an additional non-refundable bonus FCC equal to 25% of the cruise fare paid.

CCL price chart

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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