Today’s edition features:
- Jangada Mines (JAN.L)
- Sunrise Resources (SRES.L)
- Tiziana Life Sciences (TILS.L)
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The FTSE-100 finished Friday’s session 1.00% higher at 7,393.96, whilst the FTSE AIM All-Share index was up 0.63% at 1,016.82. In continental Europe, the CAC-40 finished 0.28% higher at 5,399.09 whilst the DAX was 0.83% up at 13,153.70.
Last Friday in New York, the Dow Jones closed 0.49% higher at 24,329.16, the S&P-500 added 0.55% to end the week at 2,651.5, and the Nasdaq finished 0.4% higher at 6,840.08.
In Asian markets this morning, the Nikkei 225 was up 0.41% at 22,904.96 and the Hang Seng was 0.61% higher at 28,813.77.
In early trade today, WTI crude was 0.44% lower at $57.11 per barrel and Brent was down 0.49% at $63.09 per barrel.
Bitcoin futures trading begins on CBOE exchange in Chicago
Bitcoin has begun trading on a major exchange for the first time. It launched on the CBOE Futures Exchange in Chicago at 23:00 GMT Sunday, allowing investors to bet on whether Bitcoin prices will rise or fall. In the lead-up to its futures debut, the value of the digital currency has surged. Bitcoin’s introduction to the CBOE has been seen by some as a step towards legitimising the currency. The move is expected to be followed next week by a rival listing on the Chicago Mercantile Exchange. Anticipation of the first mainstream listings have helped the controversial currency soar past $10,000 and then over $17,000 on Thursday before retreating. Bitcoin was trading at about $15,230 on Monday, according to Coindesk.com.
Source: BBC News
Jangada Mines (JAN.L, 4.88p) – Speculative Buy
Jangada Mines, a natural resources company developing South America’s largest and most advanced platinum group metals (PGM) project, announced today that the relevant Brazilian municipal government has authorised pilot scale production at the Pedra Branca project in north-eastern Brazil. As such, the Company now intends to make a trial mining licence application during Q1 2018. The Pedra Branca project comprises four main deposits and management is focused on bring the easily accessible high-grade surface oxides from the Curiu and Esbarro deposits into trial production in 2018.
Our view: The above announcement demonstrates the level of support for the development of the Pedra Branca project. The near surface high-grade oxide layer is amenable to low-capex and opex costs with the potential to produce a PGM-bearing concentrate through a simple gravity separation and floatation process. We look forward to continued development of the project including the Pre-Feasibility Study in Q1 2018. In the meantime, we maintain a Speculative Buy rating on the stock.
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Sunrise Resources (SRES.L, 0.17p) – Speculative Buy
Sunrise has announced it has received permission to undertake its Phase 2 drilling programme at the CS Project in Nevada. It is calling this “Mine Plan Drilling” since it will be used to define the open pit and mining license footprints for a pozzolan and perlite mining operation. Note that “test results from Phase 1 drill samples, surface and trench samples meet the key ASTM strength requirements for natural pozzolan across a very wide area of the property”. i.e. drilling is less exploration, more fine tuning and for permitting.
Our view: This news follows the placing announced last week, so the 22 hole Phase 2 drilling is fully funded. Timing of Phase 2 is to be determined (we think contractor availability) but will probably be in 1Q18. The CS Project is progressing well on site and in the lab. We look forward to positive developments on the marketing side. We reiterate our Speculative Buy recommendation.
Beaufort Securities acts as a corporate broker to Sunrise Resources plc
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Tiziana Life Sciences (TILS.L, 153.00p) – Speculative Buy
The clinical stage biotechnology company developing targeted drugs for cancer and inflammatory diseases, on Friday announced that the independent data monitor committee (IDMC) completed interim analysis of the safety and pharmacokinetic data from the first six patients and concluded that treatment with Milciclib was safe and well-tolerated with no drug-related serious adverse events (SAEs) in patients with unresectable or metastatic HCC. The IDMC recommended continuing with the trial. Formal establishment of safety in HCC patients was a key pre-requisite to move forward with the further clinical development of Milciclib; the treatment regimen (100mg/day; 4 days: ON/3 days: OFF, every 4 weeks) was determined as safe and well-tolerated with no drug-related SAEs in patients.
Our view: More positive safety data! The next step, a Phase 2b trial to evaluate safety and clinical activity of Milciclib in combination with sorafenib (Nexavar; Bayer Germany) in HCC, is expected to start in Q2’2018. Unresectable or metastatic HCC is an aggressive type of liver cancer for which no satisfactory treatment is currently available. The trial findings remained consistent with those already reported on the drug’s long-term safety and clinical activity in thymic carcinoma, thymoma and other solid cancers. This is therefore another important milestone as clinical trials are moved forward. Intense development of such potential blockbusters, for which global market opportunity runs into several billions of US$, means that for now Tiziana will must remain a cash consumer, part of which was facilitated by November’s recent fundraising. While the Company has a particularly exciting pipeline of products and opportunities, for prudence Beaufort has modelled the opportunity based just on its most advanced developments, foralumab and milciclib, by applying a relatively aggressive 15% discount to its long-run cashflow projection. This creates a valuation more than twice the current level based on anticipated milestone fees & royalties. In light of this continued progress, Beaufort reiterates its Speculative Buy rating on the shares together with a price target of 400p/share.
Beaufort Securities acts as a corporate broker to Tiziana Life Sciences plc
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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.
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