The AIM dropped slightly this week, but some companies in the resource sector still saw boosts. Copper Development and African Potash were the largest gainers for the week.
The Alternative Investment Market (AIM) All-Share index (INDEXFTSE:AXX) had a bumpy week, getting a boost on Thursday before dropping down 0.24 percent on Friday and closing at 733.01 points. However, despite the ups and downs, there were some significant gainers in the resource sector.
Copper Development (LSE:CDC) came in at the top of the list with a share price rise of 60 percent; it closed at GBP1.40. There was no recent news from the company to explain that boost. That said, it’s been on the hunt for prospective buyers or a joint venture partner for its 92.5-percent-owned Sipalay-Hinoba-an copper project in the Philippines for quite some time.
Sipalay-Hinoba-an has undergone significant exploration and metallurgical testwork, including over 100,000 meters of drilling. It has a mineral resource of 339 million tonnes at 0.35 percent copper and an estimated net present value of US$479 million at a copper price of US$3; that assumes annual throughput of 15 million tonnes.
The second-biggest gainer for the week was African Potash (LSE:AFPO), whose share price has increased fairly steadily over the past four weeks. It went up 32.68 percent to close at GBP2.43 after it entered into a supply memorandum of understanding (MOU) with a Malaysian fertilizer company. This sales agreement came just one week after the company signed its first fertilizer supply MOU with a Zambian fertilizer supply company.
Meanwhile, the biggest loser for the week was Arian Silver (LSE:AGQ), which plunged 56.98 percent for the week and saw its share price drop to GBP9 from over GBP20. The dip is perhaps surprising considering the company reported a net profit for Q2, earning $3.5 million for the six months ended June 30; that’s compared to a $1.7-million loss during the same period in 2014.
Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.
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