29 August 2016

Frontier Mining in off-take talks

Robert Tyerman

Kazakhstan-focused Frontier Mining is negotiating a £6 million funding with potential customers of its two million-tonne Benkala copper project.

Chairman and chief executive Erlan Sagadiev is in London discussing possible financing deals to take Benkala into production next summer and says an off-take deal, most likely with a Chinese group, is one of the options being considered.

AIM-quoted Frontier, which is merging with its 50 per cent local Benkala partner, Colville Intercorp, by granting Colville shares, argues Benkala, with a 0.55 per cent copper grade, would break even at copper prices less than a third of today's $6,600-plus a tonne. Sagadiev, an entrepreneur who built a bust dairy business into Asia Foodmaster, the continent's leading dairy products concern, points out Frontier also has several other projects in hand.

These include a potential copper deposit, with gold and molybdenum, at Baitimir, a 10,000 oz-a-year gold project at Koskuduk newly in production and Maminskoye, a gold project, where Frontier hopes to treble estimated resources from one million oz at 2.49 grammes of gold per tonne of ore to three million oz. Sagadiev says he hopes Maminskoye will start producing in 2013 with estimated production costs of $430 an ounce, against a current market price of nearly $1200 an ounce, and says the company is looking for new assets in Kazakhstan, Kyrgyzstan and Mongolia.

Sagadiev is the controlling shareholder in Frontier, which is re-domiciling itself from Delaware in the USA to the Cayman Islands, and says he is anxious to restore its former institutional following, while hinting at a first dividend in 2013 or 2014. The company lost $30.3 million (£20.2 million) last year on maiden revenues of $2.9 million, after a $25 million 'fair value adjustment' chiefly relating to outstanding loan notes, but analysts see profitability within the not-too distant future.

Floated at 15p six years ago, Frontier shares have been dismal performers. Now 5p, 1p up from their low, they value the company at £46 million and offer speculative recovery potential for the bold.

Tags: AIM, Dividend

Cash Shells 2015

Published in September 2015 this annual research report provides a comprehensive overview of cash shells on the Main Market, AIM and PLUS landscape. Order your copy today

 

Superb investment toolkit for private investors

SharePad is the new web-based service from ShareScope. Easier to use and more powerful. Perfect for tablets, Macs and Windows PC. Covers ALL your investment requirements.

Growth Company Investor: free trial

Since 2008, our share tips outperformed the benchmark by 281%. Take a free trial and get access to our recommendations today. Start free trial now.

Directors' Pay on AIM 2015

The most comprehensive review of AIM directors' pay available, and this year includes a record sample of 1000+ AIM-quoted companies. The full report is available to order for £385 + VAT. Click here for more info

 

Latest small-cap and growth company news

Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.

Popular News

Latest News

Retailers getting One View of their customers

One View listed on AIM via a reverse takeover back in March. It has developed software that provides retailers with a combined view of their customers history in both online and in-store shopping channels. This sort of digital engagement is a big opportunity for retailers to boost their sales.

Angle moves into the clinical trial stage

Angle is making good progress with its ‘Parsortix’ system which uses a precision-etched cassette to ‘sieve’ patient blood samples and capture cancerous tumour cells. The first major trial is now underway in ovarian cancer, led by the University of Vienna.

StatPro benefiting from a Revolution

StatPro shares have done well over the last month with the stock market giving the company credit for the growth in its new ‘Revolution’ product.

Tracsis signs key US deal

Transportation software specialist Tracsis has won a significant contract in the US. This looks like it could be a breakthrough which opens up the vast North American railroad market to this Leeds based company.

MedaPhor expands in ultrasound

MedaPhor came to the market two years ago and the £14 million market cap’s shares have done little since. However a couple of recent developments suggest they are worth keeping an eye on.

ScS sees no slowdown in sofas

ScS Group confirms it hasn't seen a slowdown in demand post-Brexit. Momentum has continued since the update in early June, with like-for-like sales order intake of 14.8 per cent for the first financial year ending in July.

More News