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Ready to Rumble - (CHF)
5/2/2021
(119264)
Ready to Rumble
Chesterfield Resources (CHF) produced a really rather encouraging update today, and the shares promptly slipped a shade to 12.6p, at which the market capitalisation is a mere £13m. That creates a real opportunity. There are never any guarantees of success, of course, but the signs suggest it is setting up nicely to become quite an exciting player in the bull market for metals – copper in particular.
It is searching for copper and gold in Cyprus. There is loads of copper there, but most of the mining was abandoned after the Turkish invasion and annexation of the northern part of the island in 1974. Chesterfield has started digging away, and has been waiting for a batch of assay results for months, with the process snarled up by all manner of delays. Even now, the full tally is a few weeks off, but executive chairman Martin French says the results are starting to come and are encouraging, helping provide data for the enlarged exploration programme soon to commence. Work will restart within weeks, followed by diamond drilling in May.
All good, but it looks as if Chesterfield is now a much more ambitious player than the tiny market capitalisation would warrant. There is an established mining team already aboard, but this has today been strengthened by the arrival of two new directors. Ajay Kejriwal comes in as an executive director and finance director after 30 years of experience in finance and commerce. Paul Ensor joins as a non executive director after 30 years in institutional equity markets in the UK and Far East.
Both come with intriguing detail. Kejriwal ‘has considerable experience in the junior resource sector and is a specialist in structuring transactions.’ Ensor has advised on growth strategies for a number of junior companies, principally in natural resources, and has ‘notable experience in new business development and financing.’
Both are specialist in growing junior resources companies, says French, and bring a wealth of new contacts and avenues, and the company now has the skills necessary to become a high growth player in the copper sector.
This, it seems, is more than the usual flummery around board appointments. Chesterfield is signalling that it is becoming seriously ambitious.
Why not? FTSE100 constituent Polymetal, the Russian gold giant, recently subscribed £2m for a 22.5% share stake. Top rank broker Panmure Gordon has also joined the ranks of advisers. French has made no secret of his ambition to grow, and could be looking for deals outside Cyprus, enjoying what looks like a non-stop growth trend in the price of copper. The new directors seem to slot the rest of a growth team into place.
The initial burst of enthusiasm after the Polymetal deal was announced has subsided, and the shares have drifted back. First recommended here at 9.25p on November 12, they now look ready to advance from 12.6p in a quiet market. The chance of good growth over the year ahead looks outstanding.
Ends
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