Broker Upgrades and Downgrades & Key UK Corporate Snapshots 13 July 2015

UK Broker Upgrades / Downgrades

US Broker Upgrades / Downgrades

Key UK Corporate Snapshots Today

Aggreko Plc (AGK.L) Announced that it intends to appoint KPMG as the group’s external auditor for the year ending 31 December 2016. The company’s shareholders will confirm the appointment of KPMG which will be sought at the AGM in 2016.

Alliance Pharma Plc (APH.L) Announced, in its pre-close trading update, that the group continues to perform well and in line with management’s expectations, with sales of approximately £22.8 million (H1 2014: £21.4 million) in the first half of the year. Alliance continues to explore a number of acquisition opportunities and remains confident of the outlook for the full year.

Anglo Asian Mining Plc (AAZ.L) Announced, in its production and operational update from its Gedabek gold, copper and silver mine for the three months to 30 June 2015 (Q2 2015) and six months to 30 June 2015 (HY1 2015), that record gold production for HY1 totalling 35,938 ounces (23,436 ounces from the agitation leach plant, 12,488 ounces from heap leach operations and 14 ounces from SART). Gold production for Q2 2015 increased to 18,745 ounces with 12,214 ounces from the agitation leach plant, 6,525 ounces from heap leach operations and 6 ounces from SART processing (Q1 2015: total 17,193 ounces). Gold production for Q2 2015 was 19%. higher than the same period of the previous year (Q2 2014: total 15,736 ounces). Copper production for Q2 2015 totalled 236 tonnes from SART processing (Q1 2015: 182 tonnes). Copper production for HY1 2015 of 418 tonnes (HY1 2014: 369 tonnes). Silver production for Q2 2015 totalled 4,527 ounces with 586 ounces from the agitation leach plant, 314 ounces from heap leaching operations and 3,627 ounces from SART processing (Q1 2015: total 1,950 ounces). Construction of the small scale flotation plant to improve gold and copper production is progressing well with the majority of the plant’s equipment at site. On target to be commissioned in Q3 2015 and is expected to add approximately 5,000 ounces of gold and 1,200 tonnes of copper for FY 2015. Gadir adit has now reached the ore body with 3,000 tonnes of ore extracted to date and sent to agitation leach plant for processing. Main mining to commence in August.

Avanti Communications Group Plc (AVN.L) Announced a new contract with South Africa’s business chamber, Foundation for African Business and Consumer Services (FABCOS) and its new major business incubator programme, Microtelco e-ncubatorT. Delivered via funding from South Africa’s Department of Trade and Industry (DTI), the partnership will provide high speed satellite broadband to over 1,000 small and medium sized enterprises. The programme will be deployed extensively to businesses setting up in some of the remotest parts of South Africa, reaching a number of key sectors including retail, finance and agriculture.

BG Group (BG..L) Announced that it has started up and loaded its first LNG from the second production train at the Queensland Curtis LNG (QCLNG) facility in Australia. The first LNG from Train 2 set sail on the Maran Gas Posidonia. At plateau production, expected mid-2016, both trains at QCLNG will be producing enough LNG to load ten vessels per month combined, exporting around eight million tonnes per year. Since production from the first train commenced in December 2014, 27 cargoes have been shipped.

Collagen Solutions Plc (COS.L) Announced, in its final results for the year ended 31 March 2015, that revenue stood at £0.97 million, compared to £0.02 million in the same period last year. Operating loss stood at £0.84 million, compared to a loss of £0.46 million. Loss after tax was £1.12 million, compared to a loss of £0.47 million. Basic and diluted loss per share stood at 1.17p, compared to a loss of 1.10p.

Conviviality Retail Plc (CVR.L) Announced full year results for the 52 week period ended 26 April 2015. Revenue increased by 2.4% to £364.1 million (2014: £355.7 million). Group profit before tax increased by £4.2 million as EBITDA increased £0.4 million, finance costs and exceptional items reduced by an aggregate of £4.4 million following the IPO in July 2013, share based payment charges increased £0.4 million and depreciation and amortisation were £0.2 million above last year as the Group invested more in its stores. A final dividend of 6.3p per share is proposed today for shareholders on the register on 11 September 2015 payable on 9 October 2015 post the Annual General Meeting. This increases the total dividend for 2014/15 to 8.3p per share. (2014: 8.0p per share). CEO Diana Hunter said “It is our expectation that we will attract an increasing number of potential Franchisees interested in serving their local communities with our differentiated customer experience, benefiting from the good financial returns our model can generate. The significant change we have driven over the last two years leaves us in a strong position to now drive growth into the business.”

Fox Marble Holdings Plc (FOX.L) Announced that Ms Candice Sutherland has been appointed as Chief Financial Officer, replacing Ms Fiona Hadfield who has resigned from the board for maternity reasons, with effect from 1 August 2015. Ms Fiona will remain with the company until 1 September 2015 to assist in transition and ensure a smooth handover of the role.

Frenkel Topping Group Plc (FEN.L) Announced in its interim results for the six months ended 30 June 2015, that revenue rose to £2.9 million from £2.7 million posted in the same period preceding year. The company’s profit before tax stood at £0.568 million, compared to a profit of £0.652 million reported in the previous year. The basic earnings per share stood at 0.71p compared to earnings of 0.86p reported in the previous year. The company further stated that a final dividend of 0.54p per share for FY14 was approved by the shareholders at the AGM on 19 May 2015 amounting to £0.327 million and has not been included as a liability as at 31 December 2014. The dividend was paid on 12 June 2015. The company also announced that it will be paying an interim dividend of 0.19p per share (2014: 0.17p) amounting to £0.115 million. The interim dividend will be paid on 14 August 2015 to shareholders on the register at close of business on 3 August 2015 and the shares will trade on an ex-dividend basis from 31 July 2015.

Hummingbird Resources Plc (HUM.L) Announced a positive update from grade control orientation drilling at the Komana East pit, the first area to be targeted for mining at the company’s 1.8 million ounce Yanfolila Gold Project in Mali. Yanfolila is being developed as a high-grade, low cost gold mine with first production targeted for 2016. There was 68% higher grade of 5.24 g/t compared to the entire Komana East pit that averages 3.12 g/t. There was 15% increase in the like for like grade over the grade control orientation panel to 5.24 g/t Au. The company confirms high grade zone of 12,200 tonnes at 7.7g/t Au and also confirms consistent mineralised host rock unit and mineralisation control throughout the southern mineable area of the Komana East pit. Komana East contains 332,500 recovered ozs in current mine plan before the impact of positive grade control interpretation.

International Personal Finance Plc (IPF.L) Announced that it recently proposed revisions to draft total cost of credit amendment law in Poland. Following an intervention by a Member of Parliament of the ruling party late in the process, on 10 July the Lower Chamber of the Polish Parliament voted in favour of revisions to the draft law that would cap all non-interest costs, whether mandatory or not. If the legislation is enacted as currently drafted, the company believes that all non-interest costs in connection with a consumer loan agreement may be subject to the cap. It is reviewing the draft legislation to assess whether its product structure will be affected by the proposed cap. In addition, the company is proactively developing an alternative product structure to mitigate any adverse financial impact to the greatest extent possible.

LightwaveRF Plc (LWRF.L) Announced that further to the recent Heads of Terms, it has signed a long term supply contract with Havells India Limited. It is anticipated that in due course the range would be stocked in over 290 Havells’ owned showrooms across India. The range would also see the addition of more functional air conditioning control to the LightwaveRF portfolio.

Magnolia Petroleum Plc (MAGP.L) Announced that drilling operations at the Magnolia operated and 94% owned Shimanek #2 vertical well in Oklahoma are expected to commence by the end of July 2015. Additionally, the company announces its quarterly update on its operations across proven and producing US onshore hydrocarbon formations in North Dakota and Oklahoma. Additionally, it announced record 2014 Full Year performance: 58% increase in FY revenues to $3.85 million with an additional $1.3 million income from one-off consulting services and the sale of non-core assets leading to adjusted EBITDA of $2.60 million, a 212% increase on the previous year. The company also raised £1 million during the period via a placing to fund new wells It also announced the appointment of Thomas Wagenhofer to the Board as a Non-executive Director of the company.

Mosman Oil & Gas Limited (MSMN.L) Announced, in its operations update, that land access agreements at Murchison in New Zealand are progressing well with a resource consent submission now lodged with the local authority, the Tasman District Council. The Petroleum Creek permit has significant potential, with the focus now on the larger deeper structures. The Taramakau permit surrounds Petroleum Creek and shares similar geological characteristics, and shares similar prospective play types. The potential Joint Venture at Taramakau has not proceeded as suitable commercial terms could not be agreed between the parties. The Company has an option to farm-in, which means Mosman has access to all the data but do not have to pay joint venture costs at this stage. The Joint Venture betweeb VICP62 Otway Basin and Offshore Victoria Australia has completed additional geoscientific work on the Torquay Sub-basin. The work commitment for the next year is further technical studies.

NewRiver Retail Limited (NRR.L) Announced that it has exchanged contracts to acquire the Ramsay Retail Warehouse Portfolio (the “Portfolio”) for a total consideration of £69.1 million, equating to a net initial yield of 8.0% on the income producing assets. The acquisition is in line with the company’s proven business model of acquiring carefully selected retail assets that will generate attractive cash on equity returns with identifiable opportunities to unlock additional value through the company’s active asset management and risk-controlled development.

Northcote Energy Ltd (NCT.L) Announced that it has transferred its entire interest in the South Weslaco Gas Field, Hidalgo County, Texas (“South Weslaco”) to Springer Energy Partners, LP (‘Springer Energy’). Springer Energy is a US based partnership in which Northcote has been granted a 48% equity stake in exchange for the asset transfer. The divestment is in line with the Company’s strategy to focus on its core US properties including the producing Shoat’s Creek Field in Louisiana, as well as its existing opportunities in Mexico and Indonesia. Northcote has sold its entire interest in South Weslaco for US$350,000 which is to be settled through the issue of partnership units in Springer Energy and a $10,000 cash contribution to Northcote’s costs. Springer now has assets totalling $750,000, with private US investors having contributed US$350,000 in cash in exchange for partnership units. The cash is expected to be invested in Oil & Gas drilling activity, with its first investment being a 7% interest in the ongoing Shoats Creek new drilling programme. Going forward, Springer Energy may accept additional investment at the sole discretion of Northcote and its partners, which may dilute Northcote’s 48% interest in the enlarged partnership. Northcote will act as Administrative General Partner and, in such capacity, will earn an additional fee for administering Springer Energy and will retain an interest in the profitability of Springer Energy over and above its aforementioned 48% interest. South Weslaco has historically contributed approximately 70.8 Mcf per day or, on a 6:1 basis, 11.8 BOE/d net to Northcote, and is the third Northcote asset in the ongoing planned asset disposal programme. As at 31 December 2014 South Weslaco was valued at $350,000 in Northcote’s Balance Sheet. Separately, the company announced that drilling of the Lutcher Moore #20 well (‘LM20’) targeting the Frio Formation at the Shoats Creek Project in Louisiana, is well underway and has reached circa 3,024 feet out of a total depth of approximately 5,500 feet. The Company expects LM20, in which it has a 93% working interest, to reach target depth in 6-8 days. Further announcements on LM20’s progress shall be made in due course.

Northern Bear Plc (NTBR.L) Announced its preliminary results for the year ended 31 March 2015. Trading during the year again exceeded internal management forecasts and prior year results. The Group’s revenue increased to £41.7 million (2014: £36.8 million) and its gross profit also increased to £9.8 million (2014: £9.2 million). Profit before tax for the year was £1.9 million (2014: £1.8 million) after the impact of the write off of unamortised bank facility fees. The Board proposes the payment of an increased final dividend of 1.5p per share (2014: 0.75p per share) for the year ended 31 March 2015. Current order book levels remain very strong across the Group and the new financial year has started well. Whilst there was a downturn in project commencement pending the outcome of the recent UK General Election, the Company was well positioned to capitalise on future work irrespective of the outcome of that election. The Group has announced a number of new projects in recent weeks, including Newcastle’s Seven Stories refurbishment, Pele Tower in Corbridge and Percy Road in Whitley Bay.

Nostrum Oil & Gas Plc (NOG.L) Announced that, following the recent announcements by Tethys regarding its strategic collaboration with and financing by AGR Energy, the company has made a further approach to the board of Tethys regarding a possible offer for the entire issued share capital of Tethys. Additionally, the company has indicated that in connection with the possible offer it is prepared to provide interim funding to Tethys on terms at least as advantageous to Tethys as those proposed by AGR Energy to support short term liquidity for Tethys, both prior to any shareholder vote and following such shareholder vote whilst any regulatory approvals are obtained. The possible offer the company has proposed to the board of Tethys would provide for a price of C$0.2185 per Tethys share. This price represents a premium of 15% to the price at which AGR Energy has agreed to subscribe for new ordinary shares in Tethys. This price represents a premium of 46% to the closing market price of an ordinary share on the TSX of C$0.15 on 9 July 2015 and a premium of 143% to the closing market price of an ordinary share on the TSX of C$0.09 on 14 May, the day prior to the announcement by Tethys of a convertible loan financing with AGR Energy.

Polymetal International Plc (POLY.L) Announced that it has purchased a 100% interest in the company holding the licence for the Primorskoye silver-gold property located in the Magadan region of Russia from Decamor Investments Limited. The consideration for the acquisition comprises: initial consideration of $4.5 million payable by issuing 533,301 new Company shares 0.1% of Polymetal’s increased ordinary share capital); and deferred conditional cash consideration, with the exact amount based on the audited reserve estimate and equal to of $13,333 per tonne of contained silver equivalent (translating into $0.415 per silver equivalent ounce).

President Energy Plc (PPC.L) Announced in its update on its activities in North and South America that data acquisition of the contracted 603 kilometer of 2D seismic on the Hernandarias Block has been completed on time and on budget. The raw data are now being processed for interpretation. The recent four workovers continue to produce in aggregate approximately 200 bopd of steady production. The next series of workovers is now being considered together with new wells in due course. Additionally, it acquired net incremental production of approximately 100 boepd of which approximately 45% is oil with effect from August. In addition, a further $12,000 per month of facilities fee income has been acquired. The total consideration paid by the company for all such incremental production and added income was $120,000.

Telit Communications Plc (TCM.L) Announced, in its trading update for the six months ended June 30, 2015, that the company expects that revenues for H1 2015 will be approximately $156.2 million, an increase of 13.2% over the comparable period last year (H1 2014: $138 million). Revenues are expected to include $11.1 million (H1 2014: $9.2 million) generated from the company’s IoT Platform as a Service (PaaS) through its services division, which represents 20.6% year-over-year growth. Net cash/debt as of June 30, 2015 is expected to be approximately zero (Nil) (December 31, 2014: net debt of $3.9 million). Additionally, the board is pleased to provide, for the first time, guidance for the full trading year of 2015, as follows revenues: $347 million- $354 million and adjusted EBITDA of $42 million -$47 million. The company will publish its full results for the first half of 2015 on August 3, 2015.

Templeton Emerging Markets IT Plc (TEM.L) Announced that, with effect from 1 October 2015 and subject to regulatory approvals, Mr. Carlos Hardenberg, senior Vice President and Managing Director, Templeton Emerging Markets Group would be named lead portfolio Manager of TEMIT working alongside Dr. J. Mark Mobius, Executive Chairman of Templeton Emerging Markets Group, who remains as a portfolio Manager on the fund. In addition, Mr. Chetan Sehgal, Executive Vice President and Managing Director, Templeton Emerging Markets Group will continue to serve as senior research analyst on the investment team. In his current role as executive chairman, Dr. Mobius continues to lead the Templeton Emerging Markets Group which adheres to the time tested Templeton investment philosophy of bottom up, long-term, value oriented emerging markets investing.

Trans-Siberian Gold Plc (TSG.L) Announced that mine development at Asacha in the second quarter of 2015 comprised 686 metres. Development metres were lower in June due to excessive, and abnormal, water flow, however this is not expected to have any impact on future production. Ore extraction (including ore from stoping and mine development) amounted to 44,535 mt. In the first half of 2015, an average 13,252 mt per month was processed through the Asacha plant. The average gold grade in ore delivered to the plant in the first half of 2015 was 13.5% higher than in the corresponding period of 2014. Year to date production of gold in dore and refined gold was, respectively, 15.5% and 8.5% higher than in the first half of 2014. TSG will report Asacha’s third quarter 2015 gold production in October 2015.

VietNam Holding Limited (VNH.L) Announced that it has made arrangements for the settlement of the company’s ordinary shares of $1 each (“Ordinary Shares”) in CREST, a computerised paperless settlement system which allows securities to be held in uncertificated form and to be transferred by electronic means without the need for a written instrument of transfer, in dematerialised depositary interest (“DI”) form. CREST is operated by Euroclear UK & Ireland Limited. The DIs will be issued under the same ISIN as the Ordinary Shares and will not require a separate admission to trading on AIM and will also be issued on a one-for-one basis against the Ordinary Shares that they represent. The Depositary will hold Ordinary Shares on trust for the underlying holders of Ordinary Shares and will be entered in the register of members of the company as the holder of Ordinary Shares, but the beneficial interest and all rights in the Ordinary Shares will remain with the original investor. Holders of Ordinary Shares in certificated form who wish to hold Ordinary Shares through CREST can transfer their holding to the Depositary, who will then issue to such holders DIs representing those Ordinary Shares. The DI holder will not receive a certificate evidencing the underlying Ordinary Shares. It is expected that the DIs will be enabled for CREST settlement from 27 July 2015.

Vitesse Media Plc (VIS.L) Announced, in its final results for the year ended 31 January 2015, that its reported revenue stood at £2.3 million, compared to £2.1 million in the preceding year. Loss net of tax was £0.03 million compared to £0.2 million. The company’s basic and diluted losses per share was 0.06p, compared to 0.47p.