Sector reports

Below is a list of sector reports.

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Oil & Gas

15/03/2017
Exploration watch - Wells to watch in 2017
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Since the oil price crash of 2014, exploration has been particularly badly hit as companies looked to trim expenditure. Wood Mackenzie estimates that 2017 exploration will account for 8% of upstream expenditure, down from historic norms of 14%. In this more difficult environment, any surviving exploration has tended to be led by majors, for example ExxonMobil’s giant Liza discovery offshore Guyana in 2015. In this Exploration Watch, we highlight wells due to spud in 2017 that involve independent companies, with resource estimates greater than 100mmboe. Our exception is the much anticipated multi-billion barrel potential Korpfjell prospect in the Barents Sea offshore Norway, which is operated by Statoil and partnered by major companies.

Companies mentioned

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Financials

02/03/2017
Listed Private Equity - Risk in LPE: Perception versus reality
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In our second report on listed private equity (LPE), we examine public market investors’ perception of risk in the LPE sector and investigate whether perceived risk matches reality. We support the analysis with manager and investor interviews.

Companies mentioned
LPEQ , See more..., 3i Group, Aberdeen Private Equity Fund***, Altamir SCA***, Candover Investments, Deutsche Beteiligungs AG***, Gimv*, HarbourVest Global Private Equity***, HgCapital Trust*, Partners Group, Standard Life Private Equity Trust***, SVG Capital

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Technology

24/02/2017
Mobile ecosystems
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The difference between men and boys will be the brains of their toys. Artificial intelligence (AI) promises to substantially improve the Digital Life services offered by the ecosystems that has underpinned a period of feverish investment. Despite this activity, developments are at a very early stage with none of the big challenges of AI being close to being solved. It is the search engines that are ahead in AI followed by Apple, Microsoft and Amazon. AI remains the Achilles’ heel of Facebook.

Companies mentioned

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Mining

08/11/2016
Graphite for batteries - Value in natural graphite
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As growth in electric vehicle and power storage accelerates, so in turn, it will require large amounts of the carbon allotrope graphite to meet an estimated 22% CAGR in battery graphite demand linked to construction and full utilisation of battery manufacturing facilities worldwide. In this note we address the complexity of graphite resources, their development, market dynamics, product pricing, and provide an introductory view of Volt Resources ahead of the release of its Namangale Project Pre-Feasibility Study due in Q416. Volt is an ASX-listed junior with a resource well positioned to deliver a high-quality natural graphite feedstock to battery manufacturers. In this report, we pay attention to the use of natural graphite in batteries – the strongest driver to growth in demand.

Companies mentioned
Volt Resources , See more..., Archer Exploration, Black Rock Mining, Energizer Resources, Graphex Mining, Hexagon Resources, Kibaran Resources, Magnis Resources, Mason Graphite, Metals of Africa, Sovereign Metals, Syrah Resources, Triton Minerals, Volt Resources, Walkabout Resources.

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Mining

14/10/2016
Gold and other metals: Normalisation augurs well for exploration
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Over the past two years, there has been a 67.4% recovery in the in-situ value of a global average resource ounce, from US$10.06/oz in August 2014 to US$16.84/oz currently, and a relative normalisation of the market regarding the average valuations of the three JORC resource categories. Assets remain cheap. Nevertheless, the financial return from drilling a 1Moz gold resource is now positive, on average, for the first time since August 2013 (although not necessarily for assets listed in Canada). By contrast, financial returns from both uranium and PGM exploration have deteriorated. In the meantime, exploration to delineate measured resources is likely to be a value-destructive exercise for a number of (typically) ‘bulk’ commodities, although these tend to be minerals that also benefit from the market’s discounting of future exploration success.

Companies mentioned

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All Sectors

10/10/2016
The future of equity research
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The society welcomes the current review of the research business model as an opportunity to consider if the system works in clients’ best interests and to consider what improvements are needed.

Companies mentioned

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Investment Companies

26/09/2016
Listed Private Equity - The opportunities and challenges for investors
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In the first part of a series of reports on listed private equity (LPE), we examine the key opportunities and issues for investors.

Companies mentioned
Show companies...3i Group, Aberdeen Private Equity Fund, Altamir SCA, Candover Investments, Deutsche Beteiligungs, Electra Private Equity, F&C Private Equity Trust, GIMV NV, HarbourVest Global Private Equity, HBM Healthcare Investments, HBM Healthcare Investments, ICG Enterprise Trust, ICG Enterprise Trust, NB Private Equity Partners, Oakley Capital Investments, Pantheon International, Princess Private Equity Holding, Scottish Mortgage Investment Trust, Standard Life European Private Equity Trust, SVG Capital, Woodford Patient Capital Trust

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Oil & Gas

22/09/2016
Exploration watch - Barents Sea - frontier drilling in 2017
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The Barents Sea to the north of Norway is estimated to contain almost half of the recoverable undiscovered resources remaining in the Norwegian Continental Shelf (NCS). At present only two fields, Statoil’s Snøhvit and Eni’s Goliat, are in production but a number of discoveries since 2011 have the potential to be standalone developments and are currently being appraised. The recent 23rd licensing round awarded acreage exclusively in the Barents and for the first time included the frontier South East Barents. Statoil has already indicated that it plans to drill the high-risk/high-reward Korpfjell prospect located in PL859 in this frontier area as part of a five- to seven-well Barents exploration programme in 2017.

Companies mentioned