UK Market Talk Roundup: Shares Losing

Stocks on the fall in the UK today. Compiled by Dow Jones Newswires Markets Desk, markets.eu@dowjones.com 

        0849 GMT Acacia Mining PLC, Tanzania's largest gold miner, said Tuesday the recent weakness in the Tanzanian shilling against the U.S. dollar could result in an accounting loss due to the revaluation of shilling-denominated indirect tax balances owed to the company. At the same time, the weaker local currency could boost profitability by lowering local-currency operating costs when translated into U.S. dollars. Analysts at Numis securities view the announcement as a small net positive for the company since the potential accounting loss won't affect cashflow generation while lower operating costs would. "Cash generation is the key modus operandi to the business," they say. Acacia Mining dips 0.4% to 305 pence a share. (alex.macdonald@wsj.com)
        0816 GMT The delay to Firestone Diamonds' Lesotho Liqhobong diamond project is "not great news" as it appears the contractor underestimated the quantity of overburden, say analysts at Numis Securities. But "despite the delay, at least the project remains within budget, and...Firestone has sufficient working capital until early Q1 2017." Numis cautions that any further delay could be a lot more serious since it would delay the receipt of revenue from first diamond sales. Firestone shares are down 5.1% at 32.50 pence a share. (alex.macdonald@wsj.com)
        0815 GMT Alecto Minerals (ALO.LN) is the biggest faller on AIM after the mineral exploration company said it raised GBP300,000 by way of a discounted share placing. The company placed 300 million new shares at a price of 0.1 pence each and said it will use the proceeds for additional working capital. Shares are down 24% at 0.13p. (jana.simmons@wsj.com)
        0810 GMT Shares in Firestone Diamonds PLC fell Tuesday after the U.K.-listed miner delayed the start of its Lesotho Liqhobong project and warned of higher costs to come--although still within the project's original budget. Production is now slated to start in the fourth quarter of 2016 instead of the first half. Costs are up by 156 million rand ($13 million) after workers encountered larger than expected rocks and becaus of poor weather. The miner says the project will still be delivered within its original $185.4 million budget and is fully funded. Firestone Diamonds shares are down 5.1% at 32.50 pence a share.(alex.macdonald@wsj.com)
        (END) Dow Jones Newswires

        June 23, 2015 04:49 ET (08:49 GMT)

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