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Northland Capital Partners View on the City W Resources and Fastjet

Published: 03:12 10 Aug 2015 EDT

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W Resources (LON:WRES) – BUY*: Régua update
Market Cap: £10m; Current Price: 0.28p; Target Price: 1.1p
Completes drill programme that defines extensions to NW and NE

  • W Resources has completed its drill programme at Régua in Northern Portugal.
  • This drill programme has defined high grade extensions to the northeast with results including; 2.2m at 0.36% WO3 from 96.77m (RGD024) 5.82m at 0.33% WO3 from 129.95m (RGD025). The programme has also defined a significant extension to the orebody in the northwest 2.58m at 0.43% WO3 from 144.67m and 6.45m at 0.35% WO3 from 206.55m (RGD026A).
  • Five shirt holes completed in the centre of the orebody in the planned initial open pit mining area demonstrated the presence of multiple levels of high grade tungsten mineralisation at or near to surface results include; 8.42m at 0.45% WO3  from 8.99m (RGD030), 4.35m at 0.83% WO3  from 16.5m (RGD028) and 6.24m at 0.75% WO3  from 44.29m (RGD027).
  • Resource upgrade for both La Parrilla and Régua expected in Q415.
  • Planning for an initial shallow open pit mine and a larger scale high grade underground operation is underway.
  • No change to forecasts, rating or price target.

NORTHLAND CAPITAL PARTNERS VIEW: A positive update from W Resources at its Régua Tungsten Project, located in Northern Portugal, where it continues to advance what is expected to become the Company’s second development project. The project currently has a JORC-compliant mineral resource estimate of 1,370,000mtu of WO3 at a grade of 0.31% WO3 and these latest results indicate that the updated mineral resource estimate, expected in Q415, will increase the volume of mineralisation from the extensions in the northeast and northwest. The final quarter of the year will see updated resource estimates for both La Parrilla and Régua, likely to be two significate catalysts for W Resources.

Fastjet (LON:FJET): JULY PASSENGER STATS
Market Cap: £58m; Current Price: 87p
A Record month in passengers carried

  • July was a particularly strong month for FJET where the number of passengers carried in Tanzania was 71,163, showing 36% growth on July 2014. Furthermore load factor for July was a healthy 72%, though still below target load factor of 75%. The increase follows on the back of commencement of flights to Malawi and additional flights to Mwanza (Tanzania). On a rolling twelve month basis passenger numbers looking even healthier showing +64% to 747,348 YoY.
  • As of September 2015 FJET will increase its operations on various routes on the back of an additional A319 being introduced into the fleet. Dar es Salaam (Tanzania) to Johannesburg (South Africa) increases from three flights a week to a daily flight and Dar es Salaam with both Lusaka (Zambia) and Harare (Zimbabwe) moves to daily programmes, whilst the flight from Dar es Salaam to Lilongwe (Malawi) doubles from two to four flights a week.
  • At time of results in June FJET alluded to securing a Zambia Air Service permit, and that the first aircraft was expected to be deployed in the 3Q15, so with the addition of the new A319 toward the end of this month this deadline appears on track.    

NORTHLAND CAPITAL PARTNERS VIEW: Healthy passenger numbers for FJET looks encouraging and with the new A319 being added to the fleet and many of the routes doubling flights or increasing significantly on a weekly basis, this should boost passenger numbers and ultimately revenue generation for the business in the current year. The low cost carrier has ambitions to expand the fleet to up to 34 aircraft over time and develop into a Pan-African carrier.

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