WTI $53.94 -$1.16, Brent $58.26 -40c, Diff -$4.32 +76c, NG $2.36 +7c
More of the same as tariff worries continue and US data is starting to show some concern, meanwhile the greenback has strengthened. Bloomberg has said that the results of its latest survey indicate that Opec production has risen by around 200/- b/d although to be fair from a very low level.
Interims from CERP this morning but as always they are of very limited interest particularly as the oil price was firmly stuck in the SPT range. The first half has been used in preparation for what will be a most interesting second half and cash flow optimisation has been at its peak.
This has all been leading up to the drilling of an exploration well in the SW Peninsula expected in the late part of Q3 and is the culmination of ‘many years of commercial negotiations, technical analysis and operational planning to get to this point’. The South West Peninsula has been the holy grail for Columbus and hence the concentration on this important part of the island.
Elsewhere CERP have been continuing with the technical and commercial preparations for the commencement of the CO2 project with Predator and success here could have a number of potential positives for both companies. We have been expecting an announcement with regard a new country entry for some time now but still believe it is imminent….All in all an interesting second half coming up for CERP and with the assets of Range Resources having been franked at a high price the valuation looks light.
Yesterday saw the Wentworth interims which were also of very limited interest. It was a busy time for the company though with the de-listing from Oslo, the exit from Mozambique and the continued build of the M&A book.
Most important was the arrival of the promised dividend which, at £0.45 per share costing $1m, ‘clearly distinguishes us from our peer group’. The payout which puts the company on a yield of around 6.7% as part of a 1/3 2/3 payment process and adds to the attraction of the company. With the potential of further M&A shareholders have an added incentive to be holders of Wentworth.
The second test in the Ashes series started this morning at Old Trafford where as I write Australia, having won the toss and elected to bat are 61-2.
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.
Next is ‘weathering the retail storm’ as it enjoyed a rise in half-year profits, the store’s boss revealed, The competition watchdog said JD Sports £90m takeover of Footasylum could lead to “higher prices” and “worse choice” for shoppers, but fell short of explaining its reasons in more detail
Travel firm Thomas Cook has been hit with a last-minute demand, from its banks, to find £200m in extra funding in order to secure its future. The troubled operator hoped to seal a rescue deal this week but without this, the firm is likely to collapse.
Salt Lake Potash explain the significance of producing premium grade water soluble sulphate Of potash from its Lake Way Project. Iconic Labs discuss their strategy and recent deals. Chris Bailey on Next, Diageo & Johnson Matthey. John Meyer on Kodal Minerals, Arc Minerals & BlueJay Mining.
SP Angel research note on commodities and miners, featuring: Asiamet Resources (ARS LN) - Logistics enhancements Bushveld Minerals* (BMN LN) BUY – Valuation 92p – Conference presentation in South Africa highlights forecast growth of vanadium electrolyte demand Kodal Minerals* (KOD LN) - ESIA Progress Report IronRidge Resources* (IRR LN) - Aircore results from Cote d'Ivoire Ironveld (IRON LN) – NED director resignation Solgold* (SOLG LN) - Constitutional Court ruling in Ecuador
The main trade union at Royal Mail has served notice for a strike ballot among 110,000 workers, Hong Kong is under growing pressure to sweeten the terms of its £32bn offer for the London Stock Exchange Group as a takeover battle for the British bourse intensifies
The US central bank has cut interest rates for only the second time since 2008, amid concerns about slowing global growth and trade wars. As expected the Federal Reserve lowered the target range for its key interest rate by 25 basis points to between 1.75% and 2%.