Today's market overview
Equities are off colour as talks in the US on averting the fiscal cliff look to be faltering.
IC TIP UPDATES:
Afferro Mining (AFF) says it has received a preliminary offer from International Mining and Infrastructure Corporation (IMIC) which could result in an offer of between 115p and 140p for the business. But Afferro remains under an exclusivity agreement with another potential buyer so cannot start substantive talks with IMIC until after 13 January. We keep our buy recommendation.
Heritage Oil’s (HOIL) partner in its Nigerian OML30 licence, Shoreline Power Company, has exercised an option to buy 30 per cent of the Shoreline Natural Resources joint venture with Heritage due to receive $100m in January. Meanwhile the OML30 licence produced 35,704 barrels of oil per day in November with 15,665 barrels net for Heritage, giving revenues of $52m for the month.
Quindell Portfolio (QPP) has completed the acquisitions of Pinto Potts Solicitors and The Compensation Lawyers.
Bumi (BUMI) chief executive Nalin Rathod is stepping down today to become a non-executive director. His replacement is Nick von Schirnding.
Hochschild Mining (HOC) has achieved sufficient acceptances from shareholders of Andina Minerals to push through completion of its acquisition.
OTHER COMPANY NEWS:
Kazakh oil explorer Max Petroleum (MXP) has found oil at the Eskene North prospect although porosity is not as good as hoped. A commercial test will now commence. Meanwhile Max has also announced initial closing on its $90m funding facility from Sberbank, allowing it draw down $60m and repay Macquarie Bank $47m as part of its debt restructuring.