Broker Upgrades and Downgrades & Key UK Corporate Snapshots 23 November 2015

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Altona Energy Plc (ANR.L) Announced, in its final results for the year ended 30 June 2015, that loss after tax stood at £1.31 million, compared to a loss of £2.28 million in the same period last year. Basic and diluted loss per share stood at 0.17p, compared to a loss of 0.33p.

AstraZeneca Plc (AZN.L) Announced that it has entered into an agreement with Perrigo Company Plc for the divestment of US rights to EntocortR (budesonide), a gastroenterology medicine for patients with mild to moderate Crohn’s disease, an area of medicine outside the company’s strategic focus. Under the terms of the agreement, Perrigo will pay the company $380 million upon completion of the transaction to acquire the rights to sell Entocort capsules and the authorised generic Entocort capsules marketed by Par Pharmaceuticals. The transaction does not include the transfer of any the company employees or facilities.

Bacanora Minerals Limited (BCN.L) Announced an update Mineral Resource estimate (MRE) for the Sonora Lithium Project1 in Mexico (the Project), which has seen its Indicated Mineral Resource estimate increase by over 300% to 5.0 million tonnes (Mt) of lithium carbonate equivalent (LCE)2. In addition, the project’s Inferred Mineral Resource has been estimated as a total of 3.9 Mt of LCE2 contained within the deposit. This significant increase in the Indicated portion of the resource, and the resource in total, has a major positive impact for mine planning and the Project’s life of mine. In particular, it will allow management to optimise the mine design, focusing on higher grade mineral resources and to maximise the Project’s net present value.

Bank of Georgia Holdings Plc (BGEO.L) Announced, in its third quarter results for the period ended 30 September 2015, that revenue stood at GEL216.61 million, compared to GEL159.22 million in the same period last year. Profit after tax was GEL80.91 million, compared to GEL62.31 million. Basic earnings per share stood at GEL2.04, compared to GEL1.74.

Cable & Wireless Communications Plc (CWC.L) Announced that, on 16 November, 2015 the Liberty Global Directors and the CWC Directors announced that they had reached agreement regarding the terms of a recommended acquisition through which Liberty Global will acquire the entire issued and to be issued share capital of CWC (the “Offer Announcement”). CWC intends to provide CWC Shareholders with illustrative calculations of the Exchange Ratio and the Alternative Exchange Ratio on a weekly basis until the Scheme Document is posted to CWC Shareholders, and on a daily basis (on business days only) thereafter, in each case until the Exchange Ratio Calculation Time. If the Exchange Ratio Calculation Time were 23 November 2015 (being the date of this announcement), under the terms of the Transaction, the Exchange Ratio and the Alternative Exchange Ratio would be calculated such that: under the Recommended Offer, CWC Shareholders would be entitled to receive, for each CWC Share, 0.008301 New Liberty Global Class A Ordinary Shares and 0.020321 New Liberty Global Class C Ordinary Shares, as well as the Special Dividend; under the First Dual Share Alternative, CWC Shareholders would be entitled to receive, for each CWC Share, 0.005593 New Liberty Global Class A Ordinary Shares, 0.013693 New Liberty Global Class C Ordinary Shares, 0.002343 New LiLAC Class A Ordinary Shares and 0.005739 New LiLAC Class C Ordinary Shares, as well as the Special Dividend; and under the Second Dual Share Alternative, CWC Shareholders would be entitled to receive, for each CWC Share 0.004601 New Liberty Global Class A Ordinary Shares, 0.011265 New Liberty Global Class C Ordinary Shares, 0.002343 New LiLAC Class A Ordinary Shares and 0.005739 New LiLAC Class C Ordinary Shares, as well as the Special Dividend.

Central Asia Metals Plc (CAML.L) Announced that it has received the regulatory approvals required for the Stage 2 Expansion programme of its Kounrad solvent extraction and electro-winning copper recovery project in Kazakhstan. The second part of the year has seen an overall increase in production volumes, and a record monthly production of 1,285 tonnes of copper has been achieved in October. This increase, together with an approximate 65% devaluation of the Kazakhstan Tenge against the US Dollar, results in downward pressure on the unit cost of production.

Conroy Gold and Natural Resources Plc (CGNR.L) Announced, in its final results for year ended 31 May 2015, that operating expenses fell to €0.315 million from €0.374 million posted in the same period preceding year. The company’s loss before tax stood at €0.315 million, compared to a loss of €0.380 million reported in the previous year. The basic and diluted loss per share stood at 0.0008c compared to loss of 0.0012c reported in the previous year. The company further stated that no dividends will be paid or were proposed for the year ended 31 May 2015. The company’s cash and cash equivalents stood at €23,480 (2014: €78,372 million). The company also announced that it has proposed capital reorganisation of its share capital which will comprise of a subdivision of the existing ordinary shares and a consolidation of the subdivided ordinary shares to create the new ordinary shares. The effect of the capital reorganisation will reduce the number of ordinary shares in issue by a multiple of approximately 100.

Duke Royalty Limited (DUKE.L) Announced, in its unaudited interim results for the six months ended 30 September 2015, that its reported loss stood at £0.98 million, compared to £2.78 million in the preceding period. Operating loss stood at £1.69 million, compared to £3.15 million. The company’s basic and diluted earnings loss per share was 30.03p, compared to 6.80p.

Fishing Republic Plc (FISH.L) Announced, in its trading update during the second half of its financial year, that trading has continued to be encouraging with sales, for the four months ending 31 October 2015, 43% ahead of the same period last year. This largely reflects the benefit of the additional resources being spent on sales and marketing activity. In addition, the company is extending its trading area into the West Midlands, having signed a lease on a retail unit in South Birmingham. It has also signed a lease for a new larger store in Hull, which will replace its existing outlet in the city. The company’s move into South Birmingham is in line with the group’s stated strategy to broaden its geographic reach and increase its store network alongside its online sales.

Gamma Communications Plc (GAMA.L) Announced in its trading update that the business has continued to trade strongly, with particularly encouraging growth in the sales of SIP Trunks and Cloud PBX services from both the Indirect Channel and Direct business units. The Board now anticipates that Group Adjusted EBITDA for the year ending 31 December 2015 will be ahead of previous expectations. The Board expects to receive a cash settlement shortly and hence will recognise an exceptional gain of approximately £5.5 million for the year ending 31 December 2015. Moreover the company also announced that Richard Anthony Bligh, the company’s Group Marketing Director and Managing Director of Gamma’s Direct Mid-Market Channel, will be joining the Board on 1 December 2015 as Chief Operating Officer reporting to Bob Falconer, Chief Executive Officer.

Gemfields Plc (GEM.L) Announced the results of its auction of predominantly lower quality rough emerald extracted by Kagem Mining Ltd (which is 75% owned by the company and 25% by the Government of the Republic of Zambia) in Zambia. The auction was held in Jaipur, India from 18 – 21 November 2015 and the proceeds of this auction will be fully repatriated to Kagem Mining Ltd in Zambia, and with all royalties due to the Government of the Republic of Zambia being paid on the full sales price achieved at the auction. A total of 29 companies placed bids in the company’s second auction of Kagem production in the current financial year. The auction saw 5.07 million carats of lower quality emerald extracted from Kagem placed on offer, with 18 of the 23 lots offered being sold, generating auction revenues of $19.2 million. The auction realised an overall average value of $4.32 per carat, a new record for lower quality auctions. Of the 5.07 million carats offered for sale, 4.45 million carats were sold (88%). The company’s 20 auctions of emeralds and beryl mined at Kagem since July 2009 have generated $379 million in total revenues.

Independent Resources Plc (IRG.L) Announced, in its operational and production update for the third quarter of 2015, that during the quarter the company entered into a joint venture agreement with Nostra Terra Oil and Gas plc, an AIM listed exploration and production company focused on the acquisition of producing assets in the US and Egypt, which has a similar strategic intention to that of the company to invest in producing or near-production assets with some upside potential. Quarterly production of 18,985 barrels of oil. Quarterly revenues reached $358,457. Moreover, it completed a RDDH-S of the Ksar Hadada licence which revealed significant potential.

Iofina Plc (IOF.L) Announced, in its update on the company’s iodine production in the State of Oklahoma, that late last week there was a magnitude 4.7 earthquake with an epicentre approximately 5 miles due south of one of the company’s IOsorbR plants in northwest Oklahoma. There were no injuries to any the company’s employees nor damage to company facilities. As a result, the Oklahoma Corporation Commission (OCC) Oil and Gas Conservation Division issued an Implementation Plan to reduce salt water injection in the nearby area. In the coming weeks, the oil and gas producers who own and operate over 20 Salt Water Disposal (SWD) injection wells in the affected area will likely be reducing injections up to 50% within a 5 mile radius and up to 25% within a 10 mile radius of the affected area at SWDs specified by the OCC. The expected result is anticipated to be a reduction of available brine to IOsorbR plants IO#3 and IO#5 in addition to a possible reduction of brine at plant IO#2. IOsorbR plants IO#4 and IO#6 are not currently affected by this injection reduction plan, but they are located in the area where SWD operational changes could possibly apply at a later date. As of today, the ramifications for the company’s iodine production are not certain. The board is currently estimating that this may reduce the company’s current production rate of crystalline iodine between 10-20% on a per annum basis from its 5 operating plants. The company still anticipates that it will meet H2 production targets of 260-300MT for H2 2015. The company will be working closely together with its partners to maximize iodine production and revenue.

Ironveld Plc (IRON.L) Announced, in its final results for year ended 30 June 2015, that operating loss fell to £0.520 million from £0.660 million posted in the same period preceding year. The company’s loss before tax stood at £0.593 million, compared to a loss of £0.750 million reported in the previous year. The basic and diluted loss per share stood at 0.28p compared to loss of 0.37p reported in the previous year. The company further stated that it does not intend to pay any dividend for the year. The company’s cash and bank balance stood at £1.4 million (2014: £0.738 million).

Just Retirement Group Plc (JRG.L) Announced an update to the anticipated timetable for their recommended all-share merger to create the JRP Group plc. On 5 November 2015, Partnership Assurance posted its scheme document to its shareholders and convened a court meeting and a shareholder meeting to vote on the Proposed Merger. Just Retirement subsequently announced that it was in the process of finalising its shareholder circular and that the Proposed Merger was still expected to complete around late December 2015. The revised timetable for the company and Partnership Assurance shareholder and court meetings means that the Proposed Merger is now expected to complete in January 2016, subject to the satisfaction of the other conditions to the Proposed Merger.

Karelian Diamond Resources Plc (KDR.L) Announced, in its final results for year ended 31 May 2015, that operating expenses fell to €0.124 million from €0.191 million posted in the same period preceding year. The company’s loss before tax stood at €0.121 million, compared to a loss of €0.199 million reported in the previous year. The loss per share stood at 0.0004c compared to loss of 0.0013c reported in the previous year. The company further stated that no dividends will be paid or were proposed for the year ended 31 May 2015. The company’s cash and cash equivalents stood at €0.474 million (2014: €2.1 million).

Kennedy Ventures Plc (KENV.L) Announced, in its preliminary results for the year ended 30 June 2015, that its loss before tax stood at £219,000 compared to a loss of £186,000. Basic and diluted loss per share stood unchanged at 0.5p. The company does not plan to pay a dividend for the twelve months to 30 June 2015.

MITIE Group Plc (MTO.L) Announced, in its half year results for six months ended 30 September 2015, that revenues rose to £1123.1 million from £1098.9 million posted in the same period preceding year. The company’s profit before tax stood at £45.1 million, compared to a loss of £1.3 million reported in the previous year. The basic earnings per share stood at 9.9p compared to loss of 1.0p reported in the previous year. The company further stated that the board has approved an interim dividend of 5.4p per share, amounting to £23.1 million, to be paid on 1 February 2016 to shareholders on the register at close of business on 18 December 2015.

Nostra Terra Oil & Gas Company Plc (NTOG.L) Announced, in its operational and production update for the third quarter of 2015, that it is progressing towards the Paw Paw drilling prospects via Wyoming licensing for operations. It is in negotiations with drilling and completion contractors for creating an Exploration Unit and also with the State and Federal authorities for permission. Discussions with other exploration and production companies that could potentially acquire interests in the prospect has also been on-going. It entered into a joint venture agreement with Independent Resources to focus on the acquisition of producing assets in the Mediterranean and North Africa region. It believes that the continuous lower oil price environment in the current year is giving the company increasing number of opportunities. It will continuously seek growth through acquisitions of assets within its focus areas, in known existing oil provinces such as the USA and Egypt.

Petra Diamonds Limited (PDL.L) Announced information regarding its FY 2015 dividend payment of $3.0 cents per share, as well as results of the Dividend Reinvestment Plan and the Sterling dividend currency election, whereby the dividend is paid in Sterling rather than US Dollars. The dividend payment date is 7 December 2015, subject to approval of the dividend by shareholders at the company’s Annual General Meeting on 30 November 2015, and is payable to shareholders on the register as at 16 October 2015.

Regency Mines Plc (RGM.L) Announced, in its final results for the year ended 30 June 2015, that its reported revenue stood at £0.09 million, compared to £1.23 million in the preceding year. Loss net of tax was £5.89 million compared to £1.51 million. The company’s diluted loss per share was 0.34p, compared to 0.12p.

Riverstone Energy Limited (RSE.L) Announced that it intends to raise approximately £65 million through a placing and open offer (the Placing and Open Offer). The company intends to increase its stake in Canadian International Oil Corp. (CIOC), an existing portfolio company, by up to $67 million, equivalent to approximately 20% of the company’s enlarged gross assets, pursuant to a tender offer for outstanding shares and warrants of CIOC (the Tender Offer). The company currently owns, indirectly through an entity ultimately controlled by Riverstone Holdings LLC, 14% of CIOC. This will increase to 16% as a result of recent investments due to complete in early December 2015. An open offer (the Open Offer) for approximately £65 million will be launched later today on the basis of 1 New Ordinary Share for every 9 the company ordinary shares in issue. AKRC Investments, LLC (AKRC), a cornerstone investor from the company’s initial public offering, has irrevocably committed to take up its pro rata holding of 26.15% in the Open Offer. In addition, AKRC has irrevocably committed to subscribe for shares in the excess application facility of the Open Offer such that its shareholding of the enlarged company, following the Placing and Open Offer, will be 27.5%. As part of the capital raise of approximately £65 million, an underwritten placing of approximately £48 million of New Ordinary Shares is being launched immediately following this announcement.

SEGRO Plc (SGRO.L) Announced that it has acquired a portfolio of three, fully-let logistics buildings in the Netherlands, totalling 104,000 sq m of space, for €92.7 million from the private Dutch developer, Dok Vast. The price equates to a net initial yield of 6.1% for a combined weighted average lease term of five years to first break.

Sirius Real Estate Limited (SRE.L) Announced, in its half year results for the six months ended 30 September 2015, that rental income stood at €25.87 million, compared to €21.53 million in the same period last year. Operating profit stood at €41.84 million, compared to €23.61 million. Profit after tax was €28.09 million, compared to €12.65 million. Diluted earnings per share stood at 3.87c, compared to 2.36c.

Tekcapital Plc (TEK.L) Announced that the University of Arkansas has received a “Notice of Allowance” from the US Patent and Trademark Office for Crackle-bakedR, confirming its patent application has been successful. The company acquired the exclusive worldwide license for Crackle-bakedR, a coating composition and process for baked products to impart the attributes of fried products, in January of 2015.

Trakm8 Holdings Plc (TRAK.L) Announced, in its half year results for six months ended 30 September 2015, that revenues climbed to £11.7 million from £8.5 million posted in the same period preceding year. The company’s profit before tax stood at £1.3 million, compared to a profit of £0.752 million reported in the previous year. The basic earnings per share stood at 4.26p compared to earnings of 2.48p reported in the previous year. The company’s cash and cash equivalents stood at £1.4 million (H12014: £1.9 million).

Xcite Energy Limited (XEL.L) Announced, in its third quarter results for nine months ended 30 September 2015, that net loss narrowed to $1.1 million from $3.5 million posted in the same period preceding year. The basic and diluted loss per share stood at 0.4c compared to loss of 1.2c reported in the previous year. The company’s cash and cash equivalents stood at $27.9 million (H12014: $62.8 million).