Could be because of broker "buy" recommendation.....
Broker Old Park Lane Capital believes Morocco is fast becoming one of the world’s “most exciting offshore exploration plays”.
This is good news for Tangiers Petroleum (LON:TPET), which has revealed a 3D seismic programme had uncovered a company-making 750 million barrel potential at its Tarfaya block off the coast of the African country.
The data confirms that the Trident prospect and secondary objectives at Assaka and TMA potentially contain up to 750 million barrels of recoverable oil with a geological success rate of 23%, it said.
Analyst Barney Gray at Old Park Lane said: “Based on the published work programmes of companies located in the region, including Tangiers, we anticipate up to four high impact exploration wells targeting the Jurassic Carbonate fairway over the next 12-18 months.
“Consequently, we expect Tangiers share price to rally over the next twelve months driven by positive operational news flow.”
Broker RFC Ambrian chipped in with its verdict: “After a successful fourth quarter (it announced two farm-out deals), Tangiers is well placed to continue to seek out interests in new African licences.”
The broker reiterated its ‘speculative buy’ rating on Tangiers.
A site visit to London Mining’s (LON:LOND) Marampa iron ore mine impressed broker Jefferies, which says its free cash flow should be among the best in the sector.
The ramp-up of production at Marampa, in Sierra Leone, is near to completion, said the broker, with the commissioning of a second processing plant expected by the end of March. This will raise production capacity to 3.6mln tonnes per annum (mtpa).
Combined with two transhipment vessels soon to be in operation, this should mean both lower operating costs and freight rates, though transportation infrastructure will need to match the higher production.
Jefferies estimates the miner could generate a sector-leading free cash flow yield of 17% this year, which may pave the way for shareholder returns.
The broker has a price target of 250p and a ‘buy’ recommendation.
