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Northland Capital Partners View on the City Fastjet and Savannah Resources

Northland Capital Partners View on the City Fastjet and Savannah Resources

Savannah Resources (LON:SAV) – CORP: Oman copper-gold update
Market Cap: £4m; Current Price: 1.9p
Drilling to commence at Block 4

  • Savannah Resources has commenced a ten-hole reverse circulation drill programme of selected VTEM and historic copper occurrences around the Aarja Prospect in Block 4.
  • Six out of seven holes have been completed on three targets within the Aarja Prospect. One hole is designed to test VTEM target #4, the top priority VTEM target. Three holes are designed to confirm the historic Dog’s Bones mineralisation as a precursor to mineral resource estimation. Historic results at Dog’s Bone include 33.8m at 3.35% Cu from 153.1m (AEX-39). Three holes are designed test the high grade gold discovered from trenching at the southern end of the Aarja pit where results include 14.5m at 8.03g/t Au and 0.9% Cu (AJT001).
  • One hole will test VTEM target #13 in the Zuha Prospect.
  • Two holes will test the down dip extensions of the surface sampling completed at the Gaddamah West Gossan where historic trench results include 5m at 18.49g/t Au, 1.7% Zn and 0.53% Cu (GDT08), 4.9m at 18.82g/t Au, 0.96% Zn and 0.76% Cu (GDT02) and 7.7m at 11.35g/t Au, 1.45% Zn and 0.4% Cu (GDT01).
  • Drilling has been slower than expected due to equipment breakdowns and is expected to continue for an additional two weeks.

NORTHLAND CAPITAL PARTNERS VIEW: With this drill programme Savannah Resources and joint venture partner Al Thuraya LLC is targeting a combination of greenfield targets based on VTEM anomalies and brownfield targets where mineralisation has historically been defined. The brownfield targets a relatively lower risk and are expected to lead to a compliant mineral resource estimate before the end of the year. While the greenfield targets are relatively higher risk, a discovery would not only provide a potential resource expansion target but it would also validate Savannah’s exploration methods boding well for the testing of other greenfield targets.

Fastjet (LON:FJET): October Passenger Stats
Market Cap: £49m; Current Price: 73.8p
Load factor decrease; network capacity increase

  • Passenger statistics for October shows the number of passengers carried YoY has increased by 23% and despite the amount of seats +14,000 or +23% YoY, load factor decreased to 63% from 74% in Oct 2014 as a result of demand in Tanzania being affected by Presidential elections. On a rolling 12-month basis growth in passenger numbers look healthy and were +47% to 791,758. 
  • In Zimbabwe the first flight occurred on 28 Oct 2015 and in a few short weeks leading up to the first flight over 2,600 seats were sold in Zimbabwe, which is encouraging for the business.

NORTHLAND CAPITAL PARTNERS VIEW: Passenger stats show a healthy growth on a 12-month rolling basis despite the recent decrease in load factor, explained by the recent addition of a new aircraft to the fleet in September. The share price has been weak since the time of the full year results back in June, despite the healthy increase in passenger numbers. Investors will wait and see whether the management team is able to return load factor across the fleet to the mid 70% range. The business has ambitious plans to transform itself into a pan-African low cost carrier by expanding the fleet to up to 34 aircraft over time.

1. Northland Capital Partners Limited (“Northland”) acts as Nominated Advisor and/or Broker to the company.

2. Northland) and/or its affiliates companies do beneficially own 1% or more of any class of the issuer’s equity securities, as of the end of the month immediately preceding the date of issuance of the research report or the end of the second most recent month if the issue date is less than 10 calendar days after the end of the most recent month. 

3. The authoring analyst or any associate of the authoring analyst does maintain a long or short position in any of the issuer’s securities directly or through derivatives, including options or futures positions.

4. Northland, its affiliated companies, partners, officers, directors or any authoring analyst of Northland has provided services to the issuer for remuneration during the preceding 12 months other than investment advisory or trading services.

5. Northland or any of its affiliated companies has performed investment banking services for the issuer during the 12 months preceding the date of issuance of the report.  

6. A partner, director, officer, employee or agent of Northland or any of its affiliated companies is an officer, director, employee or advisor of the issuer.  Disclosures are applicable for all companies

7. The authoring analyst, or any associate of the authoring analyst, has viewed the material operations of the issuer. 

8. The authoring analyst, or any associate of the authoring analyst, received reimbursement for travel expenses.

9. Northland makes a market in the securities of this company.

 

 

DISCLAIMER

This document is provided solely to enable clients to make their own investment decisions. It may therefore not be suitable for all recipients and does not constitute a personal recommendation to invest. It does not constitute an offer or solicitation to buy or sell securities or instruments of any kind. If you have any doubts about the suitability of this service, you should seek advice from your investment adviser. This document is produced in accordance with UK laws and regulations. It is not intended for any person whose nationality or residential circumstances may render its receipt unlawful.

The past is not necessarily a guide to future performance. The value of shares and the income arising from them can fall as well as rise and investors may get back less than they originally invested. The information contained in this document has been obtained from sources which Northland Capital Partners Limited believes to be re¬li¬able. The Com¬pany does not warrant that such information is accurate or complete. All estimates and prospective figures quoted in this report are forecasts and not guaranteed. Opinions included in this report reflect the Company’s judgement at the date of publication and are subject to change without notice. If the investment(s) mentioned in this report are denominated in a currency different from the currency of the country in which the recipient is a resident, the recipient should be aware that fluctuations in exchange rates may have an adverse effect on the value of the investment(s). The listing requirements for securities listed on AIM or PLUS markets are less demanding, also trading in them may be less liquid than main markets.

Northland Capital Partners Limited and/or its officers, as¬sociated entities or clients may have a position, or other material interest, in any securities men¬tioned in this report. Northland Capital Partners Limited does not provide recommendations on securities of firms with which it has a corporate relationship. More information about our management of Conflicts of Interest, Investment Research Methodology & Definition of Recommendations can be found at www.northlandcp.co.uk 

Northland Capital Partners Limited is authorised and regulated by the Financial Conduct Authority and a Member of the London Stock Exchange.

Published by/copyright: Northland Capital Partners Limited, 2013. All rights reserved

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