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The AIM was down this week, but a few resource stocks were still on the rise. Sable Mining Africa and Shanta Gold were the top gainers from the resource sector for the week.
The Alternative Investment Market (AIM) All-Share index (INDEXFTSE:AXX) saw a decent-sized drop off early this week, although it ticked back up slightly on Friday afternoon. Overall, the AIM was down 1.24 percent for the week, or just under 10 points, finishing at 732.87 points.
Still, several resource stocks were on the rise this week. Sable Mining Africa (LSE:SBLM) was the top gainer, rising 33 percent, to GBP0.764. The company is focused on developing its Nimba iron ore project in Southeast Guinea, but also holds the KPO Range project and a number of coal projects. Monday, Sable announced it has signed a memorandum of understanding (MOU) for the development of a coal-fired power plant near its Lubu coal project in Zimbabwe.
“This will represent a significant step forward in solving the ongoing energy deficit which is currently presenting significant obstacles to development within southern Africa,” said Sable Mining CEO Andrew Groves in a statement. “The combination of our quality coal together with CITIC’s access to power plant infrastructure, financing and construction expertise has the potential to create a long term power supply which, due to Lubu’s strategic location in north-west Zimbabwe, could supply both domestic and regional demand once connected to the established power grid.”
Shanta Gold’s (LSE:SHG) share price was also on the rise, increasing 19.78 percent to reach GBP5.39. The gold mining and exploration company is focused on its operations in Tanzania. Last Thursday, the company released an upgraded resource for the Elizabeth Hill prospect at its Luika gold mine in the country. There was no further news this week to explain the company’s rise in share price.
On the downside, oil and gas explorer Antrim Energy (LSE:AEY) lost 15 percent to finish at GBP1.48 for the week. The company announced the completion of a four-well abandonment program in the UK Central North Sea on Monday. On Tuesday, Antrim reported that its partner Kosmos Energy (NYSE:KOS) will withdraw from its interest in the Frontier exploration license off the west coast of Ireland. The company had previously acquired a 75-percent interest in the license in exchange for carrying the costs of a 3D seismic program.
Orogen Gold (LSE:ORE) was also down this week, losing 11 percent to finish at GBP0.039. Orogen is focused on exploration properties in Serbia and Armenia.
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
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