Kenmare, Independent Oil & Gas and Tethyan
Archived article

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“The FTSE100 slipped from its record high amid concerns that Prime Minister Theresa May’s speech tomorrow will indicate that the UK is heading for a ‘hard Brexit’. Sterling fell further against the US dollar and while miners Fresnillo, BHP Billiton and Anglo American continued to prosper as the weaker pound boosted their dollar-denominated earnings, banking shares suffered with Royal Bank of Scotland, Barclays and Lloyds among the biggest fallers,” says AJ Bell Investment Director Russ Mould.

“Kenmare Resources’ shares rose following record output in 2016 and its forecast that production this year could be between 5-16% higher. Kenmare is one of the world’s leading producers of titanium minerals and zircon and output is set to rise as mine optimisation continues. Unit costs are anticipated to fall further while the group will also benefit from new contract prices and higher spot prices. Kenmare’s shares were up by more than 5.6% in lunchtime trading.

“Independent Oil & Gas has agreed to buy a disused pipeline which will be the cornerstone of its southern North Sea portfolio and enable it to deliver around 0.5 trillion cubic feet of gas to the UK market. Owning its gas portfolio and export infrastructure will enable IOG to accelerate both the development planning and funding processes. IOG is paying a nominal sum for the pipeline but will have to bear the cost for its decommissioning.

“Tethyan Resources’ shares jumped following the completion of an initial four-hole diamond drilling programme at the Rudnitza copper-gold porphyry prospect in the Suva Ruda exploration permit in Serbia. Assay results have been received from the first hole which validate Rudnitza as an exploration prospect with great potential. Tethyan will finalise its exploration programme to further develop the Rudnitza prospect once assay results from the other three holes have been received. Tethyan’s shares were up by 16%.”

These articles are for information purposes only and are not a personal recommendation or advice.

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The daily market update is written by Russ Mould, AJ Bell’s Investment Director and his team. The article highlights the movement in the main index, winners and losers on the day and any macro-economic announcements.