CBI: Business needs more Brexit clarity

FTSE-100 Chart (1 Year)

FTSE-100 1 Year Chart

Today’s edition features:

  • Savannah Resources (SAV.L)

Visit Company News »



The FTSE-100 finished yesterday’s session 0.37% lower at 7,320.75, whilst the FTSE AIM All-Share index was down 0.10% at 1,010.42. In continental Europe, the CAC-40 finished at 5,383.86 whilst the DAX ended the session at 13,045.15.

Wall Street
Last night in New York, the Dow Jones closed 0.29% higher at 24,211.48, the S&P 500 added 0.29% to end at 2,636.98, and the Nasdaq finished 0.54% higher at 6,812.84.

In Asian markets this morning, the Nikkei 225 was up 1.28% at 22,786.13 and the Hang Seng was 1% higher at 28,585.25.

In early trade today, WTI crude was 0.02% higher at $56.7 per barrel and Brent was up 0.03% at $62.22 per barrel.


CBI: Business needs more Brexit clarity
More clarity on the Brexit transition is needed to stop companies proceeding with contingency plans despite the progress announced on Friday, the CBI has warned. Paul Drechsler, president of the business lobby group, said companies had begun triggering plans months ago. However, more detail could help suspend further action by firms, he said. Sterling was trading higher at just under $1.35 and €1.15 after the announcement in Brussels on Friday. The CBI chief also called for “unconditionality” about the status of EU citizens living in the UK. “It’s an important political milestone, but clarity on transition is the most important thing from a business point of view at this stage,” Mr Drechsler told BBC Radio 4’s Today programme. The Institute of Directors echoed the CBI call for certainty on the rights of EU citizens. Stephen Martin, IoD director-general, said companies urgently needed certainty about the future of EU staff in the UK. “We have grounds to hope now that our members will be able to send their employees off for the Christmas break feeling more comfortable about their status here,” he said. “We look forward to further clarity about what the UK’s objectives are for that new relationship, as well as a firm commitment on transition in the very near future.”

Source: BBC News

Company news

Savannah Resources (SAV.L, 5.40p) – Speculative Buy
Savannah announced yesterday that commissioning of the pilot processing plant for its bulk metallurgical test work programme at the Mutamba Mineral Sands project in Mozambique is now complete. The 20 tonne per hour pilot will produce bulk samples of concentrate for metallurgical and product testwork as part of the Pre-Feasibility Study (PFS). Savannah holds a 20% interest in the project and has the right, subject to key milestones being met, to earn up to a 51% as stated in the Consortium Agreement signed with Rio Tinto on 11 October 2016. The Consortium is targeting first production in 2020 with an estimated annual production of 456,000t of ilmenite and 118,000t of non-magnetic concentrate over a 30-year mine life. Total resource for the Mutamba project stands at 4.4Bt grading 3.9% THM (total heavy minerals).

Our view: We are encouraged with the pace of development at Mutamba since the Scoping Study released earlier this year. The pilot plant will produce bulk samples necessary for metallurgical test work and final products for test marking. The TiO2 pigment industry continues to gain strength on the back of strong demand for feedstock which should help support current prices moving forward. On aggregate, the Mutamba resource compares favourably with other major African based mineral sand deposits. We look forward to further updates as the project moves through the commissioning phase. In the meantime, we maintain a Speculative Buy rating on the stock.

Beaufort Securities acts as a corporate broker to Savannah Resources plc


To read Beaufort’s full research archive click here

Compiled by:
Barry Gibb, Charles Long, Ben Maitland, Sheldon Modeland & Kazunaga Senga
(t) +44 (0) 207 382 8384
(e) info@beaufortsecurities.com

Weekly diary

Click here to see all next week’s planned corporate and economic announcements.

During the three months to end-November 2017, the number of stocks on which Beaufort Securities published recommendations was 237, and the recommendations were as follows: Buy – 37; Speculative Buy – 187; Hold – 11; Sell – 2.

Full definitions of the recommendations used by Beaufort Securities in its publications and their respective meanings can be found on our website here.

Important Risk Warnings and Disclaimers
This report is published by Beaufort Securities Ltd (“Beaufort Securities”). Beaufort Securities Ltd is Authorised and Regulated by the Financial Conduct Authority and is a Member of the London Stock Exchange.


This document is not an offer to buy or sell any security or currency. This document does not provide you with individually tailored investment advice. It has been prepared without regard to the your financial circumstances and objectives The appropriateness of a particular investment or currency will depend on your individual circumstances and objectives. The investments and shares referred to in this document may not be suitable for you.

This research is non-independent and is classified as a Marketing Communication under FCA rules. As such it has not been prepared in accordance with legal requirements designed to promote independence of investment research and it is not subject to the prohibition on dealing ahead of the dissemination of investment research in COBS 12.2.5. However Beaufort Securities has adopted internal procedures which prohibit analysts from dealing ahead of non-independent research, except for legitimate market making and fulfilling clients’ unsolicited orders.

By receiving this document, you will not be deemed a client or provided with the protections afforded to clients of Beaufort Securities. When distributing this document, Beaufort Securities is not acting for you and will not be responsible for providing advice to you in relation to this document. Accordingly, Beaufort Securities will not be responsible to you for providing the protections afforded to its clients.

Beaufort Securities may effect transactions in shares mentioned herein and may take proprietary trading positions in those shares, and may receive remuneration for the publication of its research and for other services. Beaufort Securities may be a shareholder in any of the companies mentioned in this report. Accordingly, this document may not be considered as objective or impartial. Additionally, information may be available to Beaufort Securities or the Group, which is not reflected in this material. The remuneration of the author of this report is not tied to the recommendations on any shares mentioned nor to the any transactions undertaken by Beaufort Securities or any affiliate company. Further information on Beaufort Securities’ policy regarding potential conflicts of interest in the context of investment research and Beaufort Securities’ policy on disclosure and conflicts in general are available on request. Please refer to http://www.beaufortsecurities.com/important-info.

Past performance is not a guarantee of future performance. Investments may go down in value as well as up and you may not get back the full amount invested. The listing requirements for securities listed on AIM or NEX are less demanding and trading in them may be less liquid than main markets. This may make it more difficult to buy and sell these securities.

This document includes certain statements, estimates, and projections with respect to the anticipated future performance of securities listed on stock exchanges and as to the market for these shares. Such statements, estimates, and projections are based on information that we consider reliable and may reflect various assumptions made concerning anticipated economic developments, which have not been independently verified and may or may not prove correct. No representation or warranty is made as to the accuracy of such statements, estimates, and projections or as to its fitness for the purpose intended and it should not be relied upon as such. Opinions expressed are our current opinions as of the date appearing on this material only and may change without notice. Other third parties may have issued other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect the different assumptions, views, and analytical methods of the analysts who prepared them. This report has not been disclosed to any of the companies mentioned herein prior to its publication.

This document is based on information Beaufort Securities has received from publicly available reports and industry sources. Beaufort Securities may not have verified all of this information with third parties. Neither Beaufort Securities nor its advisors, directors or employees can guarantee the accuracy, reasonableness or completeness of the information received from any sources consulted for this publication, and neither Beaufort Securities nor its advisors, directors or employees accepts any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document (except in respect of wilful default and to the extent that any such liability cannot be excluded by the applicable law). You should not rely on this document and should not use it substitution for the exercise of the independent judgment of yourself or your adviser.

The information contained in this document is confidential and is solely for use of those persons to whom it is addressed and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose. Other persons who receive this document should not rely on it. Beaufort Securities, its directors, officers and employees may have positions in the securities mentioned herein.

Beaufort Securities Limited, 63 St Mary Axe, London, EC3A 8AA.
Authorised and regulated by the Financial Conduct Authority (Register No. 155104).
Members of the London Stock Exchange, NEX and QCA.

Comments are closed.