Market report

Scotgold issues new warning | Wood slumps


5pm: Wood shares slump

Shares in Aberdeen-based Wood Group plunged 74.9p (34.2%) to 144.5p after its pursuer Apollo Global Management withdrew its interest in bidding for the FTSE 250 company.

In early April it suggested a potential offer of 240p per share in cash which was a 59% premium to Wood’s share price at the time. Full story here

London’s large-cap miners performed well in early trade with Anglo American up 1.2%, and Endeavour Mining rising 1.8%.

However, Shell and BP fell 0.8% and 0.4% respectively, as oil prices fell to $73.97 for a barrel of Brent, from $74.87 late Friday.

Holiday resort company Center Parcs has been put up for sale by its owner, Canadian investment firm Brookfield, in a deal that could fetch between £4bn and £5bn (€5.74bn).

Center Parcs, once-owned by the defunct FTSE 100 company Scottish & Newcastle, operates six venues across the UK and Ireland.

The FTSE 100 closed 23.08 points higher at 7,777.70.

7am: Scotgold’s future still in balance


Scotgold Resources, Scotland’s first commercial gold producer, said its open offer of shares raised £1.5 million, but its future depends on the quantity and grade or ore being produced.

As previously disclosed Q1 2023 production at the Cononish mine near Loch Lomond was disappointing, with 4,519 tonnes of ore mined at 5.35 g/t which resulted in 758 ounces of gold being produced in the quarter.

Further Scottish gold doré sales were made to Scottish jewellery companies, totalling £183,478, from 1 January 2023 to 4 May.

It said Q1 was “very challenging” and although Q2 2023 has started better the ability for Scotgold to continue as a going concern is “entirely dependent on the quantity and grade of ore that is produced from now on”.

The company has good visibility on what is expected for the next three months and work is underway on the mining schedule and plans for the balance of 2023 and beyond.

Maurice Mason will join the board as a non-executive director.

7am: Wood pursuer withdraws

Wood Group’s pursuer Apollo Global Management has today decided not to make a firm offer for the Aberdeen-based energy services group.

Full story here

Global markets

President Joe Biden said on Sunday he remains “optimistic” about finding an agreement with his Republican opponents to raise the US debt limit and prevent the Treasury running out of money.

Republicans are demanding budget cuts in exchange for lifting the US borrowing limit, while the White House has insisted for months that the nation’s credit should not be up for negotiation.

Wall Street closed mostly lower on Friday, with the Dow Jones Industrial Average flat, the S&P 500 down 0.2% and the Nasdaq Composite down 0.4%.

In Asia early today, equities were trading in positive territory. The Nikkei 225 index in Tokyo was up 0.7%. In China, the Shanghai Composite was marginally higher, while the Hang Seng index in Hong Kong was up 1.2%.

Sterling was quoted barely changed at $1.2469 early Monday, from $1.2465 at the London equities close on Friday.

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