Share Name Share Symbol Market Type Share ISIN Share Description
Sula Iron LSE:SULA London Ordinary Share GB00B6Y3CV16 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.005p -2.17% 0.225p 0.21p 0.24p 0.23p 0.225p 0.23p 495,559.00 08:31:08
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 0.0 -1.8 -0.6 - 4.18

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09:46:070.21187,680398.07O
08:30:560.2275,802163.73O
08:06:210.22232,077501.29O
06/12/2016 15:07:360.2255,384121.84O
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DateSubject
07/12/2016
08:20
Sula Iron Daily Update: Sula Iron is listed in the Mining sector of the London Stock Exchange with ticker SULA. The last closing price for Sula Iron was 0.23p.
Sula Iron has a 4 week average price of 0.24p and a 12 week average price of 0.17p.
The 1 year high share price is 0.48p while the 1 year low share price is currently 0.08p.
There are currently 1,859,415,219 shares in issue and the average daily traded volume is 19,717,185 shares. The market capitalisation of Sula Iron is £4,183,684.24.
05/12/2016
10:38
bigjames2: Fantastic. Great announcement. More money for additional drilling? Sula (AIM: SULA), the multi-commodity exploration company focused on Sierra Leone, is pleased to announce that, following a comprehensive adjudication and tender process, Equity Drilling Ltd (“EQD”) has been selected for its upcoming drill programme. Drilling is scheduled to commence in January 2017 and two of EQD’s state of the art diamond drill rigs are being mobilised from South Africa, with drill pads and camp organisation being carried out in Sierra Leone, ahead of the drill programme. As part of the agreement, over 50 per cent. of the Sula’s standard costs to drill will be settled via the issue of new ordinary shares in the capital of Sula (the “Fee Shares”) to EQD. The Fee Shares will be issued by Sula within one month of the completion of, and release of drill results from, an initial planned programme of 2,400m of drilling. The issue price will be the higher of the prevailing share price after the release of results from the drill programme and a pre-agreed floor price being 0.35p. This innovative financing should enable Sula to drill additional metres in excess of the planned programme of 2,400m depending on the initial results of the drilling campaign. Furthermore, the Company is pleased to announce that EQD has agreed to waive all mobilisation costs associated with the transportation of the two drill rigs and ancillary equipment from South Africa to the Company’s wholly owned flagship Ferensola Gold Project, located in central Sierra Leone. Sula (AIM: SULA), the multi-commodity exploration company focused on Sierra Leone, is pleased to announce that, following a comprehensive adjudication and tender process, Equity Drilling Ltd (“EQD”) has been selected for its upcoming drill programme. Drilling is scheduled to commence in January 2017 and two of EQD’s state of the art diamond drill rigs are being mobilised from South Africa, with drill pads and camp organisation being carried out in Sierra Leone, ahead of the drill programme. As part of the agreement, over 50 per cent. of the Sula’s standard costs to drill will be settled via the issue of new ordinary shares in the capital of Sula (the “Fee Shares”) to EQD. The Fee Shares will be issued by Sula within one month of the completion of, and release of drill results from, an initial planned programme of 2,400m of drilling. The issue price will be the higher of the prevailing share price after the release of results from the drill programme and a pre-agreed floor price being 0.35p. This innovative financing should enable Sula to drill additional metres in excess of the planned programme of 2,400m depending on the initial results of the drilling campaign. Furthermore, the Company is pleased to announce that EQD has agreed to waive all mobilisation costs associated with the transportation of the two drill rigs and ancillary equipment from South Africa to the Company’s wholly owned flagship Ferensola Gold Project, located in central Sierra Leone.
31/10/2016
08:11
scotty1: Sula Iron & Gold has been able to finalise and release the results of the Induced Polarisation survey undertaken by SEMS Exploration in Q2 2016. The results indicate the potential for mineralisation is far greater than the initial Exploration Target defined by SRK of 0.8-1.5mnoz (derived from 5-7mnt at 4-8g/t gold). In the last round of drilling, SULA covered around 480m of the 2km strike length defined by the Exploration Target. The drilling confirmed that the gold bearing sulphide mineralisation is associated with the magnetic and IP anomalies. The anomalies highlighted by the IP survey indicate that the strike length could now be 8.5km indicating the potential for a significantly expanded target. Ends. Do the maths on extrapolating the prospective resource of 0.8-1.5 million ounces byr over a far longer strike length. On the sort of grades being reported this looks almost certain to be a commercial ( 2 million oz plus) prospect. That is far from discounted in the current share price. Brokerage VSA says that the shares are worth 3.1p. We are not that confident at this stage but the prospect could well justify that sort of valuation even at this early stage.
26/10/2016
07:13
fenseal3: Not long now before this starts to rally, this was around the 0.2p mark with out new investors, funding sorted and these cracking results, hold and wait for the increase in share price, GLA!!
25/10/2016
12:46
failedqs: For the sake of clarity - I think the share price was in fact higher than it is just now when broker man Daniel wrote his article, it was about 6 months ago?.... since then the share price fell about 50% and has partially recovered to the current level, but his view has been justified by events.Would be interesting to hear his current view - the new people running the company do seem to know what they are doing (unlike Warrell).Must be about time for Warrell to get punted?!.....
08/9/2016
17:14
failedqs: Lots of volume today, but for every eager buyer there's a willing seller.I admit, if there's a JV announced these could fly. But I don't believe anything Nick Warrell says - he's been promising progress for many years now with nothing but a massacre of share price to show for his "efforts", and I see no reason to believe why it should be different now. But on the plus side (for him), he's still trousering about £15,000 a month!!! Wow..........
01/8/2016
11:22
failedqs: Another month passes.....Still no sign of the finance deal - share price falling all the time, it's looking like sula is running out of time.However - Nick Warrell will have trousered another £15,000 in the last month, for presiding over total failure - shameful.
30/3/2016
16:22
fenseal3: Been out all day...just catching up and noticed the RNS, thought maybe good news to get the share price going but as the norm, nothing worth while...one day Nick might deliver...plus side looks like someone losded up with 8m shares 2 x 4m @ 0.2282p and 0.2299p, could be a rollover but a buy all the same, ONE DAY GOOD NEWS WILL COME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
24/2/2016
19:46
langster: Nick Warrell you are a complete and utter cretinous imbecile! If that Christmas blog had not been posted and promptly wiped out 50% off the share price in one foul swoop todays placing could potentially have been done in the .3's and been much less dilutive! Nick Warrell, Chief Executive Officer of Sula, said: "We are delighted to have once again shafted our shareholders by gifting them a 23% dilution. I will continue to write self important blogs which decimate the share price and I couldn't give a toss just so long as I keep getting my pound of flesh. I have no intention of resigning even though I have never delivered value for shareholders. Instead, I intend to deliver more and more dilution at an ever decreasing share price as I am a complete cretin who has no idea how to communicate with shareholders in a value enhancing way".
17/12/2014
18:58
moreforus: Sula Iron and Gold Update – JORC Expectations Exceeded By Scott Winter | Wednesday 17 December 2014 Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article. Further to my recent buy call at 1.8p here based on anticipation of Sula Iron and Gold’s (SULA) long awaited Maiden Resource Estimates for Magnetite and Direct shipping, which was released yesterday. As I expected, the share price increased by 60% peaking at 2.9p yesterday morning, however thereafter a dramatic fall resulted in a closing price of just 1.5p. a drop which I feel is excessive even by the proceedings we have come to expect on AIM. To appreciate the significance of these Maiden Resource Estimates; let’s remind ourselves about the quality of Sula’s licence area at Ferensola. The Ferensola licence is a proven extension of African Minerals Limited (AMI) 12.8 billion tonne Tonkilili iron project which, according to SRK (which incidentally produced the JORC resources for AMI in 2008 and 2009) the two licences share similar characteristics to each other. The Company had previously guided the market in January 2014 that SRK has tasked it to look for up to 500m tonnes of Magnetite Iron Ore and it further guided the market in June that the DSO target range was between 10m-50m tonnes according to SRK who have designed the drilling programme. So today’s confirmation that it has exceeded expectations by confirming a resource of 514.5 million tonnes of Magnetite at 31.8% Fe and 55.5 million tonnes of beneficiated DSO, of which 7.4 million tonnes is graded at 56.71% Fe and a further 48.1 million tonnes at an average of around 44% Fe demonstrates the significant Net Asset Valuation inherent in the company. SRK’s independent valuation of Sula’s Iron Ore & DSO assets will be published shortly and a Net Asset Value assigned to the license post JORC. Based on 27p per tonne for the 514.5 million tonnes of magnetite, 87p for the 7.4 million tonnes of 56.71% Fe DSO and 55p for the 48.1 million tonnes of 44% Fe, we can estimate a Net Asset Value (NAV) of £171.8m. Previously I suggested discounting this figure by 70%, however even when using an extremely deep discount of 85% to the estimated NAV, the equity valuation of 7.22p per share based on 356.85 million shares in circulation is reached. The market will ultimately decide, but these calculations go to show the excessive disconnect between the current market capitalisation of £5 million and a heavily discounted calculation of the estimated NAV. Currently the market is pricing is a staggering 97% discount to the estimated NAV. There’s no doubt that negative sentiment is affecting Iron Ore, and investments based in Sierra Leone due to Ebola crisis. However, one has to question whether a 97% discount is an appropriate amount to apply. In addition to yesterday’s MRE, it is also been suggested by SRK that an additional 100-250 million tonnes can be further added to the resource base, and with BIF-2 results being announced early January, it will not be unexpected to see a total resource amount nearing to 1 billion tonnes of iron ore. Beneficiation will no doubt need to be applied to the majority, if not all of the higher grade iron ore to bring this up to the industry standard grade of 62%. However, given the Fe % is greater than 40%, it isn’t a costly process to increase the grade. This is the same process that African Mineral Resources utilises with its higher grade ore, and many other of the world’s large DSO iron ore producers. It's an observable fact that steep falls in commodity prices are often a precursor to a rally, and recently some industry executives have said this is likely next year for iron ore. Notwithstanding the obvious caveat of beware miners talking up prices of commodities they produce, there is some cause for optimism that the worst is over as we approach the New Year. The case for a stabilisation in prices followed by a modest rally next year is largely built on the view of more high-cost supply leaving the market, coupled with steady demand growth from top importer China. Peter Poppinga, head of ferrous metals at Brazil's Vale, told an investor briefing in London recently that the iron ore price had overshot to the downside and it will "bounce back in the very near future." While he didn't specify a level he expects prices to reach, he did nominate $90 a tonne as a hypothetical price based on expected demand and supply. As mentioned previously, coltan, a very rare and expensive mineral has been found at Ferensola. Nick Warrell, CEO, stated in RNS dated 26th November 2014 “Discussions with a potential off-taker for our Coltan are ongoing and these new monies will allow us to accelerate this programme to a point where, dependent on the outcome of the current phase of exploration, we will consider establishing a small pilot processing plant for the Coltan and all the benefits that would result there." Indeed, if there is an off-take agreement at some point in 2015; this will be transformational for Sula’s enterprise value. It is possible that any off-take company will look for selling an average of 1 tonne per month or 12 tonnes a year to one of the major electronic, telecom and/or computer manufacturers and there must be potential for at least 100 tonnes in Coltan on the Sula Licence otherwise they would not have asked Sula to go away and undertake a cost/benefit analysis. A significant revaluation of the company as it becomes an income producing miner pending the eventual sale of the company should not be discounted. With an estimated NAV share price equivalent to around 48p confirmed via these Maiden Resource Estimates; it’s clear to see the current share price of 1.5p looks extremely oversold especially as the company is fully funded following recent equity raising for the foreseeable future and the prospect of an off-take agreement on Coltan in latter part of H1 2015 a distinct possibility. The JORC news and, importantly the imminent independent SRK valuation of the company which is expected early January; should act as the catalyst for a substantial re-rating of the share price in the short term and the exploration on Coltan coupled with a drilling campaign on BIF2 in the North Eastern part of Sula’s licence area should deliver further acceleration in the share price in early 2015. I see no reason why the share price could not be many multiples of the current price. Indeed, it’s hard to believe that the current 97% discount to the estimated NAV can be applied indefinitely. Furthermore, more excitement during 2015 can be expected as the company further explores the Gold and Coltan resources and is in a position to sell its iron ore resource.
17/2/2014
13:54
joan1234: Beaufort Securities FULL BROKER NOTE Sula Iron Gold Price target: 15p Feb 2014 Posted by profith in Uncategorized ≈ Leave a Comment [Edit] Beaufort Securities FULL BROKER NOTE Sula Iron Gold Price target: 15p Beaufort Securities FULL BROKER NOTE Sula Iron Gold Price target: 15p An independent report has underlined the huge potential of Sula Iron & Gold's (LON:SULA) Sierra Leoneasset. Compiled by SRK Exploration Services it has assigned a potential value of US$200mln to the 153-square kilometre Ferensola Project. Ferensola is estimated to contain enough gold to support a 250,000- 400,000-ounceresource, it revealed, while the iron ore potential is also significant. Sula has already set a 500mln-tonne exploration target for the latter, which SRK says is "achievable". More importantly, there is "good potential" for high-value direct shipping ore from the three kilometre-long deposit, which is thought to be an extension to the giant Tonkolili banded iron formation owned by African Minerals. "Whilst the potential for iron is unlikely to be on the same scale as Tonkolili it is still substantial," said the SRK report. Sula continues to surge ahead of results from Sierra Leone projectWest Africa-focused mining group Sula Iron & Gold has continued its recent strong run with the share price soaring ahead of a conference call with management later this week. The company said in a statement that it will update investors on Wednesday about the completion of initial field work at its flagship project Ferensola in Sierra Leone in early January. It will also use the opportunity to introduce new non-executive directors that it brought on board over recent months. The share price was up 35% at 4.05p before the close of trade, having now risen by 193% over the past month. The stock, however, is still 22% lower than January 2013. Sula had announced on January 8th that initial field work targeting gold mineralisation had been completed at Ferensola and said that it was expecting results by the end of the first quarter. Investors are likely hoping that the results, which Sula intends to use to identify future drill targets, will be announced during Wednesday's conference call. 'I am confident that we are set to significantly enhance Ferensola's gold resource potential this coming year,' Chief Executive Nick Warrell said in a statement last week. alltheaimmarketnews's insight: hxxp://www.sulairongold.com/docs/SRK%20Blue%20Horizon%20Property%20valuation%2021.01.14.pdf Beaufort Securities Sula Iron & Gold Speculative Buy 15P TargetToday, 5:10 PM Beaufort Securities Sula Iron & Gold Speculative Buy 15P Target alltheaimmarketnews's insight: Sula Iron & Gold announced that further drilling results have confirmed significant iron prospectivity in Sierra Leone. Best intersections include 29.70 metre (m) at 52.25% iron (Fe) and 40.01m at 29.98% Fe. While previous drill holes returned highs of 30.96m at 37.37% Fe, 6.14m at 55.67% Fe, 11.10m at 54.41% Fe and 69.70m at 37.28% Fe. Further, drill programme tested the strike continuity, thickness, and iron grade of a 2.2km section of a 3.1km banded iron formation (`BIF') which is coincident with a strong linear magnetic anomaly, proven to extend from African Minerals 12.8Bt iron Tonkolili licence area. Our view: Earlier this month, Sula had announced the completion of a 2,000m diamond drilling programme at its wholly-owned 153 kilometre (km)2 Blue Horizon licence area located in the northern part of the Sula-Kangari Greenstone Belt in Sierra Leone. The latest drill results reaffirm that Sula's flagship Ferensola Iron Project in Sierre Leone is highly prospective for iron. Given, the above, it is easy to deduce that the company is likely to make rapid progress in establishment of a JORC compliant resource. We retain a Speculative Buy rating on the stock. Beaufort Securities Sula Iron & Gold Speculative Buy 15P Target Wednesday 4th Feb Buy Price: 3.25p Price target: 15p AIM: SULA.L (FTSE AIM All Share) Sector: Mining & Exploration Exploration Update – Fast Tracking Sierra Leone Two detailed exploration updates in the opening weeks of 2013 confirm Sula Iron & Gold's significant upside potential. Funds raised at the Group's AIM admission in October 2012, followed by an equity placing one month later to satisfy market demand, have already been put to good use. Being ideally located in this highly prospective region, Sula is on the fast track to emulate the success of its immediate neighbour. A JORC compliant resource is anticipated in 2013. Development of its 153 sq km iron ore and gold licence area (EL54/2011) in Sierra Leone's mineral rich Sula‐Kangari mountain range has confirmed a Banded Iron Formation ('BIF') over a strike length of 3.1km located in the south west of the licence area, along with significant greenstone‐style gold mineralisation. Now 'drill ready', an exploration target of 500Mt at 30.4% iron for magnetite and 55% iron for haematite has been provided by independent mining specialists, SRK Consulting Ltd. Separate field work and re‐logging of historic core data by Exploration Alliance S.A. at the Dalakuru and Lagunda prospects has also identified gold mineralisation. Diamond drilling by previous operators over a small part of the Dalakuru prospect intercepted significant gold mineralization in three drill holes, which remains open in all directions. Mineralization is associated with quartz‐sulphide breccias characteristic of Ashanti‐type greenstone‐hosted gold deposits. Further work, including a ground magnetic survey and follow‐up geochemical sampling, is planned to advance the prospect to a drill ready stage. 'Closeology' is the watchword for Sula. In mine exploration parlance, this defines a prospect that is geologically 'near' to an existing producer, while also assuming a reasonable 'match' in terms of both legal and strategic opportunity. EL54/2011 is indeed contiguous to the license which contains African Minerals Limited's operational Tonkolili mine, which has an in‐situ resource of 12.8 billion tonnes iron ore, and Amara Mining plc , whose Baomahun gold project boasts a 2.8Moz indicated and inferred resource. Having been in production since 2011, Tonkolili demonstrates low stripping, processing, infrastructure and transport costs. With its project mining licenses in place, environmental permits issued and fiscal terms agreed with the Government of Sierra Leone, Sula is ideally positioned to emulate the success of its neighbours. A maiden resource is targeted during H1'2013 with intention to delineate a JORC compliant resource before the year end. Sula's Chief Executive Nick Warrell said: "Detailed mapping and reconnaissance work at our flagship iron and gold project in Sierra Leone has returned highly positive results, which confirm outcropping banded iron formation over a 3.1km strike, and advances the project to a drill ready status. From here we plan to implement a 2,000 metre drilling programme and are due to sign a drill contract shortly to commence work. The drilling work will further test the strike continuity, thickness and DSO grade potential of the Project and it is our intention to delineate a JORC compliant resource in terms of the iron at the Project in 2013. In addition, we are highly excited by the gold prospectivity of the Dalakuru and Lagunda target areas having analysed past drilling data where results returned best intersections of 8.72m @ 10.46 g/t gold. We look forward to commencing further work over these two target areas including a ground magnetic survey and follow‐up geochemical sampling and will report on these developments in due course." On 18th January 2013, it was announced that Beaufort International Associates Ltd. had been appointed joint broker to Sula Iron & Gold with immediate effect. Share price performance Nov Dec Jan Source: Fidessa 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 6.0 6.1 6.2 6.3 6.4 SULA SULA IRON ORD 1P Source: Fidessa Key Data 12m high‐low 8.00p ‐ 5.125p Mkt. cap: £6.55m No. of shares: 121.97m Website: sulairongold.com Analyst Barry Gibb (t) +44 (0) 207 382 8422 (e) barry.gibb@hbmarkets.com Sula Iron & Gold plc 11th February 2013 ‐ Page 2 The Sula Mountain Region Is an elongated chain that forms an open, northerly‐trending arc that stretches some 120km on a width of 16km. It was geologically surveyed between 1950 and 1954, with its first primary source of gold documented in 1958. Between 2003 and 2010, exploration work was undertaken in the licence area by Golden Leo Resources, which includes drilling 388 rotary air blast ('RAB') and 34 diamond holes, totaling 8,798 metres and included some positive results. Other operators in the Sula Mountain region include: African Minerals Limited (12.8bn tonnes iron ore mine)* Taia Lion Resources Inc. * Dimas Resources Ltd.* I Engineering and Geological Services Ltd. Vatra Group of Companies* Transcend International Resources Ltd.* Amara Mining plc (2.8m oz indicated and inferred gold project)* *Contiguous to licence The Licence EL54/2011 The licence is a renewable four year exploration licence and was granted on 24th August 2011. Located in the Northern Province of Sierra Leone, some 55km south of the nearest town, Kabala, and 290km north east of the capital, Freetown. There is excellent infrastructure with tarred road from Freetown, followed by 80km on bush roads. The exploration camp is located centrally in the licence area, comprising of a core logging shed, accommodation buildings, office block, engineering workshops, stores, kitchen and dining facilities. Sula's 'Blue Horizon' Licence with African Minerals' Tonkolili licence bordering to the south east Historic gold exploration work within the licence included extensive geochemical sampling, a shallow RAB drilling programme and over 5,000 metres of diamond drilling. The recently completed Q4'2012 exploration programme included digital capture and verification of historic data, generation of an integrated GIS database, acquisition of GeoEye high resolution satellite imagery, field mapping of BIF targets, review of historic diamond drill core and re‐modelling of drill core data. Preliminary interpretation of the GeoEye image indicates that alluvial gold workings are much more extensive than previously thought and provide vectors to five highly prospective source areas within the licence, with the Dalakuru and Lagunda targets marked as high priority. Review of drill core has also provided Sula Iron & Gold plc 11th February 2013 ‐ Page 3 significant information on bedrock geology, alteration signatures, and mineralisation styles and grade. The amalgamation of new and historic exploration data has been designed to allow more effective interpretation of data while streamlining analysis. Iron Exploration The priority target (Target 1) area is located in the south‐western part of the Project area and directly along strike from an undrilled magnetic high within the Tonkolili licence. It comprises a 2.7 km long, up to 200 m wide, northeast trending, linear magnetic high. Reconnaissance mapping of this magnetic anomaly by Exploration Alliance in Q4 2012 identified coincident BIF outcrop and fragments within duricrust over a strike length of 3.1 km. The BIF is drill ready and a 2,000 metre diamond drill programme has been designed to test the strike continuity, thickness and iron grade of the BIF before the end of the quarter, with the ultimate aim of testing the potential for an iron deposit in excess of 0.5 billion tonnes. The drilling programme will comprise eight drill collars spaced 320 metres apart over a strike length of 2.2 km. Each hole will be drilled at an azimuth of 140˚ and a dip of 50˚, to a down‐hole depth of 250 metres. Following this first phase of diamond drilling, shallow vertical holes are required to test the potential for direct shipping ore ('DSO'), being 60%+ grade iron mineralisation. Initial field mapping has indicated that the BIF outcrops are variably oxidised to higher grade haematite characteristic of the higher grade DSO ores. The Company expects to report further on this iron‐focussed drilling programme in the coming months. Gold Exploration Artisanal miners have exploited placer gold within the Project area for more than 60 years, and active workings are observed in at least five separate areas. Gold mineralisation observed is associated with Ashanti‐style quartz‐sulphide, greenstone‐hosted veins, lenses and breccias. This is the dominant style of mineralisation in West African greenstone belts and is recognised elsewhere in Sierra Leone. Greenstone‐style deposits are typically located on or proximal to regional scale, deep seated faults and lineaments. Mineralisation occurs in shoots and lenses on second and third order structures at low angles to the main structure, generally being associated with quartz sulphide mineralisation and disseminated to massive sulphide. Interpretation of high resolution GeoEye‐1 satellite data and field follow‐up has indicated that artisanal placer gold workings are more extensive than previously thought and suggests that much of the placer gold is being sourced from at least five mineralized structures within the licence area. The Dalakuru and Lagunda have the largest alluvial footprint and are considered highly prospective. Sula Iron & Gold plc 11th February 2013 ‐ Page 4 Previous operators on the Project completed 3,406 metres of RAB drilling and 5,392 metres of diamond drilling at three locations considered prospective for gold. Nineteen diamond drill holes totalling 3,402 metres have since been completed at Dalakuru which intercepted significant quartz‐sulphide breccias in three holes: i). 8.72 m @ 10.46 g/t gold (89.40 to 98.10 m, SDD004) ii). 1.55 m @ 11.68 g/t gold (171.00 to 173.00 m, SDD016) iii). 9.03 m @ 6.63 g/t gold (161.37 to 170 m, SDD033) Re‐logging of historic drill core indicates that mineralisation at the Dalakuru target area comprises steeply dipping quartz‐sulphide breccias hosted in amphibolite. As there is no outcrop, and no more than one hole intercepted each mineralised structure, the dip and strike direction of the structure is not known. However, when available data is plotted in cross‐section it is evident that historic drilling at Dalakuru did not adequately test the mineralised system. Therefore, despite the historic drilling at the Project gold mineralisation is open in all directions, and further work to include re‐logging and sampling of drill core and ground magnetic surveys are required to explore the size potential and morphology of Dalakuru. The Lagunda prospect comprises a large, active, artisanal alluvial gold field striking northeast over at least 2km. The alluvial gold field is coincident with and parallel to the contact between a magnetic high and magnetic low identified from regional airborne data. This signature is considered significant as it potentially represents a fault zone or lithological contact, which act as conduits for hydrothermal fluids and are excellent traps for gold mineralisation in greenstone‐style environments. It is considered an attractive exploration target for such mineralisation and further work including a ground magnetic survey along with additional geochemical sampling is planned. Project Risks All early stage exploration projects contain significant risk. This is one reason why investor confidence is greatly boosted by the participation of Board members who demonstrate a record of experience and past success in similar projects. As can be seen in the appendix to this document, Sula brings exactly this along with the right credentials to support the projects at both the operational, regional and financing levels. Investors also need to consider the near and longer‐term outlooks for both precious and base metals pricing, while also adopting a view on the politics of the country in which it is operating. HB Market's current view on these points are detailed below: Sula Iron & Gold plc 11th February 2013 ‐ Page 5 Iron Pricing Outlook – Long term supportive view: Significantly supported by Asian, in particular Chinese demand. Year end seasonal weakness has been replaced by new demand to re‐stock inventories ahead of the re‐start of construction activity. On this basis, we expect iron ore prices to average $130‐140/t during 2013. Medium‐to̴8;longer‐term, supply will remain exposed to sentiment shifts in the emerging territories, where modernization of infrastructure and transportation will continue to supply demand. Gold Pricing Outlook – Long term positive view on gold prices: Near term US federal debt and money supply appear set to continue to grow at a rapid pace over the next six to nine months while both US and Indian real short‐term interest rates are expected to stay firmly in negative territory. Chinese inflation has started to notch upwards over the last few weeks. These factors combine to provide a very supportive background for gold. Further out, supply constrains from the depletion of operational mines which are not being replaced and continuing concerns of fiat money suggests international governments will move to build or rebuild gold reserves disposed of over the past three decades. Sierra Leone – A good African location – Sierra Leone has a stable democracy, with a population of circa 5.5m. Geology is dominated by an Archaean age terrain comprising granite‐greenstone material. The country has abundant natural resources including diamonds, gold, bauxite, iron and mineral sands. The economy is heavily dependent on mining for export earnings both large scale and artisanal. The International Monetary Fund shows real GDP growth of 5.0% and 5.3% in each of 2010 and 2011, a trend that appears set to be sustained in the current period. Nick Warrell, CEO has seen many positive changes in Sierra Leone during the last five years of Mr. Koroma's presidency and foresees this trend continuing with stable government (see appendix for biographies). Whilst infrastructure is sub‐standard by developed world standards, the Government is addressing this issue and is committed to investments in transport, energy and water. In comments made by the Finance Minister Samura Kamara to Bloomberg Businessweek in November 2011, US$1.4 million is to be spent on the airport at Lunghi, US$91 million has been allocated for roads, and US$47 million has been allocated for energy and water. Comparable Valuations A selection of companies considered comparable to Sula is tabulated below. These range from early stage exploration and development through to production in order to demonstrate how potential value increases as they move through the value chain. Picking out one ‐ Affero Mining (AFF.L) demonstrates the potential value of the Sula licence if a 0.5bnt at a grade of 30.4% resource were proven; Affero has a 1.2bnt resource at a grade of 32.7% at its Nkout project in Cameroon; in the preliminary economic assessment (28/05/2012) the project is valued between $1.1bn and $4.6bn. African Mining is clearly the giant amongst these with a resource some 25 times that of the exploration target suggested by SRK for Sula which is, perhaps, an ideal demonstration of the Company's inherent value and potential upside. Company Location Ticker Project Stage Market Cap (£m) Enterprise value (£m) Reserve and Resource tonnage (mt) Fe grade (%) EV/tonnage (£/t) Baobab Resources Mozambique BAO.L Tete Exploratio n (Drilling) 47.4 41.7 482.4 32.9 0.09 Centaurus Minerals Brazil CTM.AU Jambreiro PFS Completed 45.4 39.6 165.5 30.0 0.24 Affero Mining Cameroon AFF.L Nkout PFS Completed 91.3 64.0 1,180.0 32.7 0.05 Alderon Iron Ore Canada ADV.TO Kami PFS Completed 150.0 121.1 1,088.0 30.0 0.11 Zanaga Iron Ore Congo ZIOC.L Zanaga PFS Completed 73.9 46.7 4,339.0 33.0 0.01 London Mining Sierra Leone LOND.L Marampa Production 224.5 316.9 1,078.0 31.2 0.29 African Minerals Sierra Leone AMI.L Tonkolili Production 1,060.8 751.9 12,800.0 30.4 0.06 Source: Northland Capital Partners, Bloomberg Sula Iron & Gold plc 11th February 2013 ‐ Page 6 Our View Sula ticks all the right boxes. Exposure to both base and precious metals, proximity to other existing producers, management quality and experience coupled together with expected news flow. The comparative valuation table, which ranges from early stage explorers through to significant producers, demonstrates high potential upside for investors. Progress reports should flow steadily in the coming months and culminate in a compliant resource estimate before the year end. This is the time at which other operators in the region might well express an interest. Investors should enjoy the ride. Strengths and Weaknesses Strengths Weaknesses • CPR concluded that an exploration target of a magnetite BIF could be in the region of 500mt, with Fe content of 30.4%; • CPR also indicated areas for gold exploration; • Experienced board, with CEO as Honorary Paramount Chief of the Diang Chiefdom; • The evidence strongly indicates the ore body is contiguous with the proven Tonkolili ore body, which is in active production. • The Company is in an exploration phase and it may not discover an economic resource; • It will require further funding either from a partner or other sources besides equity; • Sierra Leone is in West Africa and licence rules may change, and political changes may affect the rules for exploration; • Iron Ore prices may fall if world GDP growth falters. Gold prices may weaken if central bank accumulation slows. Source: HB Markets Appendix Directors and Management Brian Moritz, Non‐Executive Chairman ‐ Brian Moritz is a Chartered Accountant and formerly Senior Partner in the London office of Grant Thornton. He formed Grant Thornton's Capital Markets Team in the early 1990s which floated over 100 companies on AIM under his chairmanship. In 1995 he retired from Grant Thornton to concentrate on bringing new companies to market as a director, specialising in junior companies in the natural resources sector and in Africa. He is a former Chairman of Metal Bulletin plc and African Platinum plc, before they were acquired by Euromoney and Impala Platinum respectively, and Chromex plc. He is currently Director and Chairman of a number of junior mining companies, primarily operating in Africa, including Ferrex plc, Goldplat plc, U3O8 plc and several others. Nick Warrell, Chief Executive Officer, Executive Director ‐ Nick Warrell is a respected mining entrepreneur who has headed up various exploration projects worldwide including the UK, Australia, South America and West Africa. Early in his career, he established and successfully operated Kernow Tunnelling Company for 17 years, and owned and re‐opened the Wheal Concord tin mine in Cornwall. He also managed and subsequently owned the Gwynfyndd Gold Mine in Wales. In Sierra Leone, where he has spent 22 years, he discovered what is likely to be the richest gold and platinum deposits found in modern times and as a result founded Golden Prospect Mining, which floated on AIM and was later sold. Nick is a Honorary Paramount Chief of the Diang Chiefdom which controls the concession area. Gavin Burnell, Non‐Executive Director ‐ Gavin Burnell has 11 years' experience of advising smaller companies and is Director of Corporate Finance at Northland Capital Partners Limited. He is a founder and/or Director of several public and private companies in varying sectors including Globo plc (AIM:GBO), Magnolia Petroleum plc (AIM:MAGP), Hot Rocks Investments plc (PLUS:HROP), Hellenic Capital (PLUS:HECP), Rift Resources plc, Woodland Capital Limited and Sports 1st Limited. Sula Iron & Gold plc 11th February 2013 ‐ Page 7 Chris Wilson, Technical Director, Non‐Executive Director ‐ Chris Wilson is an established geologist with over 20 years' experience. He has been Chief Executive Officer of Hunter Bay Minerals Plc (TSX.V: HBY) since May 2007 and also serves as its President. Dr Wilson formed Exploration Alliance Ltd in 2007 and serves as its Principal. He is a Qualified Person (NI 43‐101 and JORC), a Chartered Professional Geologist, Fellow of the Australian Institute of Mining and Metallurgy and a Fellow of the Society of Economic Geologists. Dr Wilson graduated with a BSc (Hons) in geology from University College of Wales, Aberystwyth in 1985 and with a Ph.D from the Flinders University of South Australia in 1991. Site Management Des Congdon, General Manager ‐ Des Congdon has 40 years' of international experience in the sector, managing both exploration programmes and mining operations. He started his career with Nick Warrell at Wheal Concord tin mine in Cornwall. Des came to Sierra Leone in 2009, joining Nick Warrell again at Lion Mining. Richard Magee, Project Manager ‐ Richard is Project Manager based at the Dalakaru Exploration Camp and is responsible for all aspects of work being run out of the camp. Richard previously worked for Nick Warrell at Lion Mining and prior to that worked for Glencore in the Democratic Republic of the Congo. Richard has also worked for Sandvik Mining and Construction, and as a Trainee Quarry Manager with Aggregate Industries and Trainee Mining Engineer with Anglo American. Richard has a First Class M.Eng (Hons) in Mining Engineering.
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