Last checked at LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.
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FTSE 100 - WINNERS
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Intercontinental Hotels Group, up 4.5%. The hotel operator reported a drop in revenue per available room in the third quarter of 2015 due to the strengthening of the dollar, but said RevPAR grew in three of its four operating regions on a constant exchange rate basis. The hotel operator said global RevPAR in the third quarter fell 0.4% on the same period the year before due to the strengthening of the dollar, although it grew 4.8% at constant exchange rates, led by a 3.6% rise in room rates.
Whitbread, up 2.0%. The owner of Costa Coffee and Premier Inn said its pretax profit increased in the first half on higher sales and said it will raise its interim dividend, as it remains on track to meet its growth plans. The company said its pretax profit for the six months to August 27 was GBP254.9 million, up from GBP241.8 million a year earlier. The latest half was hit by the group booking GBP25.2 million in exceptional charges on onerous leases for sold business and accelerated amortisation costs on its IT systems. Total revenue was up to GBP1.44 billion in the half-year from GBP1.29 billion a year ago, with like-for-like sales growth across the group of 3.6%.
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FTSE 100 - LOSERS
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Tesco, down 1.6%. The supermarket's sales fell in the 12 weeks to October 11, down 1.7% and a sharper decline than that of Wm Morrison Supermarkets and in contrast to the 1.1% rise in sales posted by rival J Sainsbury. Asda, the second-largest grocer in the UK behind Tesco, saw its sales fall 3.0% in the period. Morrisons shares were up 0.6%, while Sainsbury's shares were down 0.1%.
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FTSE 250 - WINNERS
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AVEVA Group, up 3.8% at 2,084.00 pence. Berenberg upgraded the engineering software company to Buy from Hold and increased its price target to 2,450 pence from 1,977p, on optimism that the reverse takeover of the company by France's Schneider Electric will go through, despite market uncertainty which appears to have affected AVEVA's share price.
Al Noor Hospitals Group, up 2.0%. The Middle East hospitals operator attracted another suitor, confirming Abu Dhabi-based VPS Healthcare has made a "highly preliminary" indication of interest in acquiring the company. It follows on from Al Noor last week agreeing a reverse takeover by South Africa's Mediclinic and comes as its FTSE 250 rival, NMC Health, continues to pursue a merger. NMC shares were up 2.9%.
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MAIN MARKET AND AIM - WINNERS
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SolGold, up 21%. The company said it has received the highest-grade assay results so far for its Cascabel copper-gold porphyry project in Ecuador. The company said drilling at Hole 12 showed intersects of up to 1.75% copper. SolGold also said the Aguinaga prospect is maturing as a drill target and has a similar geophysical signature to the giant Alumbrera copper mine in Argentina.
Toumaz, up 15%. The semiconductor technology company said it has secured a new GBP5.0 million term loan. Toumaz has secured the loan from Clydesdale Bank Growth Finance. "As we stated in our half years results in September 2015, we expect to be cash generative from the middle of 2016. This loan provides greater resilience to our existing reserves," said Chief Executive Anthony Sethill.
Shanta Gold, up 12%. The gold miner said its gold production at the New Luika Mine in Tanzania hit a record in the third quarter, with gold sales also sharply higher and its production guidance maintained. Shanta said gold production from New Luika in the three months to the end of September hit 24,552 ounces, up from 14,664 in the second quarter. Gold sales rose to 26,254 ounces from 11,590 ounces in the second quarter, at an average price of USD1,175 per ounce, down from USD1,222. Shanta said it remains on track to achieve its cost targets for the year and said its production guidance of 72,000 to 77,000 ounces from New Luika remains intact.
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MAIN MARKET AND AIM - LOSERS
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Rurelec, down 41%. The power producer and IPSA Group, the South African power plant developer and operator, both released statements noting that a key shareholder in both has been placed into administration. Sterling Trust, the shareholder placed into administration, owns a 54% stake in Rurelec and a 29.6% stake in IPSA. IPSA shares are currently suspended.
Aureus Mining, down 11%. The miner said it has had to temporarily suspend production from the New Liberty gold mine in Liberia due to a mechanical fault with one of its crushers. However, the company is only expecting to lose "a few days" of gold production from the fault as it has mobilised a temporary crusher and expects the problem to be fixed before the end of the month. The mine, which only began producing this year, experienced a fault with the secondary crusher on site which led to a temporary shutdown of the process plant. A mobile crusher has been mobilised and is expected to arrive by Friday to allow crushing and processing operations to continue.
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By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
IN BRIEF: SolGold says talks over Cascabel project continue
SolGold PLC - London-based copper and gold explorer in Ecuador - Says strategic review is advancing following merger with Cornerstone Capital Resources Inc in February, through which it consolidated an 100% interest in the Cascabel copper-gold project in Ecuador. Adds that discussions with "highly credible groups" interested in its assets are ongoing. Says work plans for 2024 have been funded and no additional financing is required in the near-term, after raising USD86 million through an investment by Osisko Gold Royalties Ltd in 2022. Chief Executive Officer Scott Caldwell says he is "disappointed" by the company's current stock price as SolGold is "currently in the strongest position it has ever been". Its shares are down 41% over the past month.
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