Talon Metals Corp., a TSX-listed company incorporated in the British Virgin Islands and focused on the exploration and development of the Trairão Iron Project in Brazil, this month provided an update on its investments in other publicly trading companies. Among them, there is Tlou Energy Limited – an Australian company focused on the development of unconventional gas opportunities in Africa. Talon Metals is the owner of 16,857,142 shares in this company. In April, 2013, Tlou Energy successfully completed an initial public offering on the Australian Securities Exchange, and raised AUS$10,000,000 at AUS$0.50 per Tlou Energy share.
The BVI company also owns 3,191,489 shares in Brazilian Gold Corporation – a Canadian public company engaged in the acquisition, exploration and development of gold properties in Northern Brazil. On May 30, 2013, Brazilian Gold announced that it has signed a non-binding letter of intent with Kingwell Group Limited, pursuant to which Kingwell may make a general cash offer to the shareholders of Brazilian Gold for not less than 50.95% of the outstanding common shares of BGC, at a price of CDN$0.27 per share.
Resource Generation Limited, which is another investment of Talon Metals Corp., is focused on developing the coal mine in the Waterberg region of South Africa, with 30 years mining right having already been issued to Resource Generation and advanced project financing discussions underway.
Sean Werger, President of Talon, commented: “We believe that our current treasury of approximately CDN$16.5-million, coupled with these additional investments in other publicly listed companies, puts us in a good position to successfully implement our strategy of pursuing projects that can generate meaningful cash flow with low capital requirements.”
China TechFaith Wireless Communication Technology Limited, which is the global mobile solutions provider registered in the British Virgin Islands and headquartered in China, reported its unaudited financial results for the three months period ended March 31, 2013. For the first quarter of 2013, TechFaith’s net revenues were US$28.2 million, – a decrease if compared to US$31.0 million in Q4 2012 and US$42.7 million in Q1 2012. These results primarily reflect a decline in revenues from the gaming segment of the BVI company.
In the reported period, gross profit of TechFaith was US$4.6 million compared to US$5.9 million in the fourth quarter of 2012 and US$10.8 million in the first quarter of 2012. Gross margin for the first quarter of 2013 was 16%, compared to 19% in the fourth quarter of 2012 and 25% in the first quarter of 2012. The gross margin decrease is mainly attributable to overall lower revenues combined with increased manufacturing costs.
In the first quarter of 2013, BVI Company’s net income was US$0.3 million or US$0.01 per share, basic and diluted. This can be compared to a net loss of US$3.0 million or US$0.06 loss per share basic and diluted in the same period of the last year.
China TechFaith also published preliminary forecast for the second quarter of 2013. The company currently expects total revenues for the second quarter of 2013 to be in the range of US$28.0 million to US$33.0 million.
Orca Exploration Group Inc., the BVI-registered public company engaged in natural gas exploration, production and development in Tanzania, announced its financial results for the first quarter of the year 2013.
The company reported that its capital cost pools were depleted in the previous quarter, therefore company’s revenues, earnings and funds from operations reduced significantly in Q1 2013. During the period ended 31 March 2013, Orca’s revenue of US$13.2 million was down 36% as compared to US$20.7 million in the fourth quarter of 2012. Company’s earnings were US$2.95 million, or US$0.08 per share diluted – that is 47% decrease from the fourth quarter of 2012 (US$5.6 million). Working capital of Orca Exploration increased by 16% to US$54.8 million at 31 March 2013 (US$46.8 million as at 31 December 2012) due to capital expenditures.
In the first quarter of 2013, additional Gas sales continued at capacity averaging 61.6 MMcfd, which is 16% increase as compared to the first quarter of 2012, and 2% increase over the fourth quarter of 2012. Industrial sales volume was 13.1 MMcfd – a 7% increase from Q4 2012. Power sector sales volumes remained unchanged over Q4 2012 at 48.5 MMcfd.
Also, in the reported period BVI company’s funds from operations before working capital changes were US$8.7 million (US$0.25 per share diluted), which is down 26% from Q4 2012 (US$11.7 million or US$0.33 per share diluted).