Bank Of England On Hold
Just in case one was forgiven for thinking that the Bank of England were not cutting rates to undermine the Conservative government, it has adopted the same disastrous policy for the new charity case administration. I remain amazed that no one in the mainstream media has complained that interest rates are 3% above inflation, and this alone is horrific for the economy. Indeed, if one looks historically, perhaps the only memorable time when this was the case was the day on leaving the ERM that base rates were briefly pushed up to 15%. The Federal Reserved cut rates in the US there by half a percent. But of course, they would cut them to zero to ensure that Kamala wins in November.
Exodus
But of course, it gets worse over here. Every other person I speak to in the City is either leaving the country or wants to, ahead of the autumn statement. We are already taxed up to the eyeballs, something witnessed by debt to GDP now being at 100%. A repeat of the IMF intervention we saw in 1976, two years into the 1974 Labour government, beckons for 2026. The nail in the coffin for the London stock market remains the removal of IHT exception on AIM stocks. The question here is how could Rachel Reeves not do this?
What people have still not grasped (the ones who wish to say in the country), is that the Government wishes to destroy all the independent means of creating wealth in the country, so we are all reliant on the state. Expect more City destroying measures over and above IHT, CGT and red tape.
QCA Annual Dinner
Speaking of red tape, apparently a good time was had by all at the Annual Dinner of the 2024 QCA (Quoted Companies Alliance on Wednesday at the Savoy Hotel in London. This is an event to “celebrate the growth of the small and mid-sized quoted company community.” Rather like the Small Cap Awards in June, I was both not invited by any of the service providers I pay for as a quoted company and who attend such events to procure new clients. For some naïve reason I though that once I was quoted I would be inundated with invites to such happenings, but the oppositive seems to be the case. Apparently, one can legislate against discrimination in the workplace, but not to make people one’s friends.
That said, given that the QCA has managed to get the number of stocks on the market down to its lowest for decades, liquidity is like the Gobi desert, and the bureaucracy at Kafkaesque levels, perhaps it deserves one day a year to drown its sorrows.
Financial PR
The service providers to the stock market “celebrating” does remind me of my pet area, financial PR. We are spoiled for choice on whom to choose: the box ticking, generic, big City, cowboys (amateur investors turned “professional PR”, cheap with no following, and expensive with no following. Unfortunately, the industry is basically an aggressive sales and marketing exercise preying on the lack of knowledge of most CEOs. I would be delighted to suggest the right solution for any CEO who gets in contact. Anything is better than watching a CEO interview with coloured subtitles, and an old face, face to camera, like a rabbit in the headlights.
Pulsar Helium
If you would like to listen to how an interview should be conducted perhaps the one I did with Pulsar Helium (TSX-V:PLSR) this week is a good example. The added sizzle here is the forthcoming LSE listing.
Wildcat Petroleum
The first of this week’s stocks is Wildcat Petroleum (WCAT). For months the market has been waiting on a possible green light for a massive petroleum sharing agreement. In April WCAT was offered a service contract over the Bamboo oil field with the possibility to convert it into a PSA when the situation allowed in Sudan. In May WCAT announced that it has signed an MOU with the Ministry of Petroleum in South Sudan, after passing due diligence in February. Of course, the market being the market, the shares did not really react off the back of any of these announcements. However, this week’s MOU with Nile Petroleum Corporation, the National Oil and Gas Corporation of South Sudan, to collaborate together for acquiring the assets held by Petronas Carigali Nile Limited, has finally moved the dial.
Indeed, even the most cynical stock market observer would have to admit that WCAT has inked the kind of giant killing deal it has always promised, with assets that could be bigger than Tullow. The company said, “In February 2024, Wildcat received approval from the South Sudanese Ministry of Petroleum to undertake a petroleum deal in South Sudan including the purchase of large-scale oil production. The Company continues to work with the MOP and have enhanced its relations with Nilepet, positioning Wildcat with a great opportunity to acquire oil producing assets in the region.” Given that such announcements typically have most of the sizzle taken out of them by advisors / lawyers, colloquial English would probably just say, “we’ve cracked it.” Shares of WCAT were up 27% this week.
Helix Exploration
Also among the risers was Helix Exploration (HEX), up 18%. The company has been on the front foot since it came to market in April, with the latest boost being an operational update on the Clink #1 well at the Ingomar Dome Project where significant shows of helium and hydrogen gas from the Amsden, Charles, and Flathead sandstone formations have been encountered.
Lexington Gold
Lexington Gold (LEX), the gold exploration and development company with projects in South Africa and the USA. Shares were up 23% on the week as LEX confirmed the formal authorisation by the board of directors of Jelani Resources Proprietary Limited to its shareholders of an independent JORC (2012) Mineral Resource estimate for the Jelani Resources project area. LEX said that the total combined Inferred, Indicated and Measured JORC (2012) Mineral Resource Estimate of 6.02 Moz, at a grade of 6.47 g/t gold is a very significant resource and showcases the huge potential of not only the Jelani Resources JV asset but Lexington Gold’s assets in South Africa as a whole.
No News Is Good News
Just as important, are the companies rising on no recent news. MetalNRG (MNRG) was up 16%, Pensana (PRE) 18%, Greatland (GGP) 19%, and MyHealthChecked (MHC). One would imagine that these stocks are well teed up for next week. This may also be the case for Sovereign Metals (SVML) which managed to get a mention in the Midas Column. Just for a change Joanne Hart did not pick a stock near its all time high, although the main frustration here is that the Midas Column now appears to be behind a paywall.
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