European stock markets moved back on Wednesday, as investors remain cautious ahead of key economic data, and continuing ructions over the Cypriot crisis.
IC TIP UPDATE:
On Tuesday, a report that Vodafone (VOD) could face a takeover bid resulted in its shares closing at a 10-year high, up 5.4p to 192p. Now US telecoms group Verizon Communications has scotched reports that it (along with US communications giant AT&T) intends to buy or merge with the UK mobile phone operator. Verizon said it did not “currently have any intention to merge with or make an offer for Vodafone”, which is hardly a strong denial. Verizon added that it remained interested in buying out Vodafone's 45 per cent stake in their Verizon Wireless joint venture.
Green Dragon Gas (GDG) has revealed a significant increase in proven coal bed methane reserves. In its annual reserves estimate, the China-focussed producer increased its proven reserves by 37 per cent to 59bn cubic feet – valued at $324m up from $263m a year ago. Proven and probable, or 2P reserves, increased 2 per cent to 313bn cubic feet.
KEY STORIES:
Baobab Resources (BAO) said the latest resource update from its pig iron project in the Tete Region of Mozambique underlines the potential to build a large-scale operation. The JORC-compliant estimate, compiled by independent consultants Coffey Mining, revealed a slight upgrade on the previous estimate to 727m tonnes, although a higher proportion – some 217m tonnes – is now classified within the indicated category with the remainder inferred.
Babcock International (BAB) confirmed that the 2013 full-year financial results will be in line with expectations and will show strong progress on the previous year. As anticipated, net debt will be approaching 1.5 times cash-profits at the year end.
Quindell Portfolio (QPP) revealed that it has won a five-year contract with the RAC, and said it has enjoyed a strong start to the year. The company said it had been converting successful pilot programmes to contracts, and outsourcing wins provided it with the volumes required to meet full-year revenue expectations.
Thorntons (THT) confirmed that the pre-exceptional profit before tax for its June year-end will be ahead of the current market expectation of £3.1m. The chocolatier has been struggling to boost performance after a slump in profits last year, but Easter trading “combined with similarly satisfactory results from both Valentine’s Day and Mother’s Day” has provided momentum.
Interserve (IRV) has signed a deal with Scottish landowner Tiger Developments to build a mixed-use shopping mall in Edinburgh at an estimated cost of £161m. Tenants of the proposed development, located next to Haymarket train station, would include FTSE 100 retailer Tesco (TSCO).
Vedanta Resources (VED) revealed that the Supreme Court of India has granted the company an appeal over the closure of its copper smelter in Tuticorin, Tamil Nadu. The Madras High Court had previously ordered the mining giant’s subsidiary Sterlite Industries to shut down the factory for violation of green norms and environmental damage following a gas leak on March 27th.
Andor Technology (AND) said trading conditions have remained similar to those experienced in the second half of the 2012 financial year. As a result, it expects revenue for the six months to March 31st 2013 to be modestly ahead of the previous six months, but profit before tax (adjusted for the amortisation of acquired intangibles) may be marginally behind the equivalent figure in the previous six months.
OTHER COMPANY NEWS:
Beowulf Mining's (BEM) shares tumbled this morning despite an announcement that its JORC-compliant tonnage at Kallak North has increased by almost 10 per cent with a significant proportion upgraded into the indicated category. Kallak North – an iron ore deposit in northern Sweden – now holds an estimated 144m tonnes.
SSE (SSE) – previously Scottish & Southern Energy – one of the country's largest energy companies, has been fined £10.5m for mis-selling by regulator Ofgem – the largest penalty ever for an energy supplier. Ofgem said it found “failures at every stage of the sales process” across SSE’s telephone, in-store and doorstep selling activities.
