Mining Eye

Winners in Q4 2012

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There were few share price winners in Q4, with only one third of companies realising a net gain.

Mining Eye index and FTSE AIM All Share index since 2004

Source: EY, Thomson Datastream

Baobab Resources saw the largest share price rise, closing up 158% largely in response to a resource statement at the Ruoni Flats block of its Tenge/Ruoni iron ore prospect. It says the resource should be sufficient to support a standalone 4mtpa pig iron operation over a 35-year life-of-mine – making it the world's largest pig-iron producer1.

Alexander Mining saw the second largest price rise at 124%. The company is focused on commercializing proprietary mineral processing technologies that target cost effective processing of base metals at the mine site . It reached some important milestones in Q4, with the grant of further patents, and the financial support of Metalvalue and its associated private equity vehicle, Metalvalue Capital Holding.

Afferro Mining's share price rose 113%, largely in response to media speculation over a potential offer for all or some of its shares. The Cameroon-focused iron ore developer confirmed it was in discussions with AIM-listed International Mining and Infrastructure Corporation and Jindal Steel and Power. Talks with Jindal have since ended, with Afferro's board saying the offer undervalued its portfolio and strong balance sheet.  

Amur Minerals reported positive drilling results from the Maly Kurumkon deposit at its Kun-Manie nickel project in Russia, leading shares to close Q4 up 65%.  Shareholders also welcomed positive changes to the legislative process around the granting of a mining licence for Kun-Manie by Russian federal agencies.

Central Asia Metal's share price rose 29% over a quarter in which it announced its first dividend. It is proposing an annual dividend calculated as a proportion of attributable revenues from its Kazakhstan Kounrad SX-EW copper project.

Outside of the largest movers, other companies reported milestone events and successes not met with a share price rise.

Zanaga Iron Ore released its maiden ore reserve statement on its flagship Republic of Congo Zanaga project. It says reserves will be sufficient to support its planned 30mtpa 68% Fe pellet feed project over a 30-year mine life, as it progresses the feasibility stage.

Kibo Mining concluded a joint venture agreement with Votorantim Metaís Participações. The Brazilian partner will contribute an initial maximum £2.7m over three years to fund an agreed work program at its Haneti properties, earning a potential 50% stake.

1 "Ruoni flats resource statement pushes global inventory beyond 650mt", Baobab Resources regulatory news announcement, 3 December 2012.

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