finnCap Research Company Notes - 3 May 2018

May 03, 2018 / Research Notes

Daily corporate finance updates from finnCap Research

Sector: Mining

Armadale Capital (ACP): Commencement of Feasibility Study at Mahenge Liandu

Key data                              

  • Share price (p): 1.9
  • Target price (p): U/R
  • Market cap (£m): 4.5
  • Enterprise value (£m): 5.0

Armadale Capital has announced that it has started work on a Feasibility Study for its Mahenge Liandu graphite project in southern Tanzania. The Feasibility Study is expected to be complete in Q4 2018, with a decision to build expected early in 2019. We currently have no target price for Armadale.

Contact: Martin Potts | 020 7220 0544 | mpotts@finncap.com

Sector: Industrials

Van Elle (VANL): New CEO starts in October

Key data                              

  • Share price (p): 81.5
  • Target price (p): 80.0
  • Market cap (£m): 65.2
  • Enterprise value (£m): 69.8

The new CEO has a strong CV but we will have to wait for his views on the operations and growth prospects as he starts in October. An interim manager has been appointed until then. FY 2018 adj. PBT will be better than we feared it might be (£10.5m vs our forecast £9.1m), but there remain a number of challenges both internal and market related. With these risks in mind, and the rewards unclear until the new CEO has had time to review the business, we maintain our Hold recommendation.

Contact: Guy Hewett | 020 7220 0549 | ghewett@finncap.com