Sign up USA
Proactive Investors - Run By Investors For Investors

Bushveld Minerals a star performer among AIM-listed miners, says analyst

Bushveld's shares have jumped more than 300% over the past three months as it closes in on its deal to buy Strategic Minerals
Bushveld Minerals is due to complete its acquisition of Strategic Minerals on Friday

Bushveld Minerals Limited (LON:BMN) was a "star performer" among AIM-listed basic resources stocks in the first quarter, SP Angel said in a note today.

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. 

View full BMN profile View Profile

Bushveld Minerals Limited Timeline

Related Articles

November 18 2016
Anglesey is the owner of the Parys Mountain underground zinc-copper-lead-silver-gold deposit in Wales, where it is updating earlier scoping and economic studies.
picture of steel mine
April 07 2017
Company has just agreed to spend the best part of £12mln on the Vametco vanadium mine next door to the company’s own deposit at Brits
May 19 2017
Strategic Minerals has a diversity of assets, including the Cobre magnetite operation in New Mexico and the Redmoor tin and tungsten project in Cornwall
Copyright ©, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use