SP Angel said shares in Bushveld surged 306% in the first quarter and have jumped 256% over the past year following a strong performance and the announcment of acquistions.
The company is due to complete its $US$14mln acquisition of a 78.8% stake in Strategic Minerals Corporation from Evraz Corp on Friday after receiving clearance from South African authorities.
Strategic Minerals owns the Vametco vanadium mine in South Africa, which SP Angel analysts said will provide a boost to Bushveld’s profits.
"Vametco profits should rise sharply on markedly higher vanadium prices and on proposed initiatives to increase the range of production from the plant,” the broker said.
Beaufort repeats 'speculative buy' rating...
Meanwhile, Beaufort Securities said the company’s announcement today of a memorandum of understanding with Chinese group Sinohydro for a bankable feasibility study at the Imaloto thermal power plant project in Madagasca sets out clear objectives for the two parties.
Beaufort reiterated a ‘speculative buy’ rating, saying Sinohydro and its parent company PowerChina bring a wealth of technical expertise required to build and operate coal fired power plants.
The feasibility study will assess an initial 60Mw independent power producer (IPP) coal power plant and associated 200 kilometre transmission line in southern Madagascar.
Sinohydro will prepare the bankable study at its own cost within 12 months of signing the MoU.
Following the completion of the study, Sinhydro’s PowerChina will have an option to take an equity interest in the project.
“We look forward to completion of the bankable feasibility study at cost to Sinohydro, which will help define the economics of the project and note the potential positive social impact this project could have to an area with limited power,” Beaufort said.
Coal fuel for the power station will be provided from Bushveld subsidiary Lemur's coal mining permit area in Madagascar.
Shares rose 6.48% to 7.80p in morning trading.