“No Higher Taxes For Working (Class) People”
One would assume that by now, in the run up to the Budget this week, there are hardly any people who have not cottoned on to the intentions of the new Labour Government. Indeed, it would appear that the only people who have actually been fooled by their own ideology are those in the Cabinet, in that they apparently think the “working people” dogma is real and is good. This is even though, as it probably will turn out later this week, everyone will be worse off, working or non-working. Even Rachel Reeves has finally admitted as such.
However, this is only part of the problem in taking us back to the 1970s, taxing the rich until the “pips squeak” (Denis Healey), and being under the influence of trades unions. The real issue is the inefficiency of government spending our money. The lesson from high tax / big state, is that even with an infinite supply of cash, demand for services and benefits always exceeds supply.
Leave The Country
Away from the general (undeserved) misery due to hit us latest this week, we have the specific pain that is due. IHT, CGT and fiscal drag are all heading our way. This has given many of us the conundrum of either leaving the country, or not bothering to work at all. Ideally, it is a mix of the two. The message this week is that working (class) people do not have assets such as shares, real estate, businesses. So, the message is do not have any of these, otherwise you will be financially punished. Well, that can be easily arranged. The other point by implication is that poor people’s cash / assets is theirs, but rich people’s money should belong to everyone. This sounds like discrimination of a certain section of society: will we be start to taxing fat, short, old people, just because they are what they are? Actually, this is probably due to happen soon too. If there is an outcome to look for in terms of salvation it might be that Reeves and friends go so overboard on raising taxes, it actually brings down the government well before the 4 – 5 years election term.
AIM Breaks Down
Speaking of CGT, IHT et al. Given the general nightmare that is due, the plight of the stock market appears to be of rather marginal concern. Those who have been in charge of guarding the interests of the City have led us to being in the brace position that we currently find ourselves in. But it would appear that they are more concerned about their personal careers than the stock market. Perhaps they do not believe that the golden goose could ever stop producing eggs. Interestingly enough, at the end of this week the AIM All Share Index broke the key 730 level, a level which has been in place since December last year. The extended top on the daily chart since then suggests there is a risk of a move down to the lows of last October near 670. This would not be a great look, and certainly not giving us the pro-business world that the new government was promising us before getting elected in July.
EnergyPathways
As far as the stock market highlights of the week were concerned, they were actually signalling to us that there is at least a little cash around for the small caps. EnergyPathways (EPP) continued to rocket after its Hydrogen Storage Collaboration with the government, coming in the wake of the £5m green loan facility last month. Although I am not a fan of the reliability of government: the timescales, budget over runs, changing of minds (HS2) it would be churlish to rain on EPP’s parade at this stage. We should celebrate the market’s enthusiasm, if only because this rarely happens.
Alkemy
Arguably an even more impressive rabbit was pulled out of the hat this week by Alkemy (ALK). Hands up all those who thought that the Tees Valley focused lithium hydroxide refinery developer $25m CLN was not going to get over the line? Instead, ALK said this partnership with ABGSC was a major step forward for Tees Valley Lithium, as it moves towards delivering Europe’s largest independent lithium hydroxide refinery. Securing this funding will allow it to complete the vital FEED stage and progress towards unlocking the full potential of this strategically important project. The future looks extremely bright for TVL as it works to meet the growing demand for battery-grade lithium in Europe. The shares were up nearly 100% this week since the news to close at 87p. Presumably, if ABGSC gets the money for ALK the stock will be rather nearer to the 300p level it was at the end of 2022.
Seascape Energy
Also hitting the big time, at least in terms of percentage gains this week, was the poetically named Seascape Energy (SEA). The company formerly known as Longboat Energy, announced that both it and EnQuest (ENQ) have been awarded a small field production contract in Malaysia. Perhaps the main coup here is that unlike a whole host of “this time next year Rodney” companies on the London market, a positive event has actually happened.
Armadale
Of course, not every stock that rises is on positive news, or even the promise of it. Armadale Capital (ACP) was up 125% this week. What the market was clearly enjoying is the prospect of a GM regarding the cancellation of its shares on AIM on Thursday. Cue all those shorters who have been depressing the share price for years exiting their positions ahead of October 31. Of course, this may be fair enough. What is not helpful is that there would appear no end in sight, and no form of redress for small cap companies who are blighted by ongoing, malicious attacks. Sometimes purely for shorting gain, but usually just as clickbait to push up numbers for advertising revenue. Given that AIM et al seem to want as few listed companies on the London market as possible, this may be an explanation as to why shorting manipulation goes unpunished.
Pulsar Helium
On a happier note this week saw the opening ceremony of a new company on AIM: Pulsar Helium (PLSR), which I was fortunate enough to attend, The primary helium explorer is now dual listed with its listing on the TSXV in Canada. The IPO price was 25p and the shares opened firmly the week before last and have continued in this vein, helped along by the massive helium find in Minnesota, USA in February.
Helix Exploration
Indeed, it has been a good week for helium, with Helix Exploration, (HEX) providing an operational update on the Clink #1 well at the Ingomar Dome Project. It said production casing has been run to 8,130ft and cemented, with the implication being that this is a pre-discovery RNS announcement.
Rome Resources
Another recent AIM arrival, and another Oak Securities deal, is Rome Resources (RMR). The sizzle here is that the market is finally starting to appreciate that this is a fast timeframe, significant tin mineralisation play. This week RMR said it had seen promising copper-tin mineralisation at Mont Agoma, as part of the ongoing drilling campaign that follows the success of the “outstanding” MADD10A hole. The shares were up 28.8% this week and chart wise look set for a move towards 0.5p by the end of next month, after trading down to 0.24p in the wake of the Pathfinder RTO.
Firering
Noticeable this week were a couple of companies where the penny is starting to drop / shares are starting to rise. The first is Firering (FRG), where the only news so far this month was the corporate presentation which provided further details on its quicklime project in Zambia. This is on track to start phased production in Q4 2024 and ramp up to full capacity by mid-2025 to become one of the largest quicklime producers in the region.
Ondine Biomedical
There was further proof this week that Ondine Biomedical (OBI), the Canadian life sciences company pioneering light-activated antimicrobial treatments, is on track with Steriwave®. OBI confirmed that King’s College Hospital (KCH) will be running a pilot of its Steriwave® light-activated antimicrobial technology later this year. Obviously having the backing of KCH, a globally recognized leader in healthcare innovation and one of London’s largest teaching hospitals is a significant feather in OBI’s cap.
Predator Oil & Gas
A company which may get more appreciation in coming weeks is Predator (PRD). This is especially if it gets some of the love London’s other helium plays are currently receiving. We are after all, due much more news on the company’s flagship helium prospect MOU-5 by the end of the year, and with the company fully funded on the potential in-place helium of 104.31 to 598.88 BCF. Shares of PRD are currently at a bargain basement price of 7p. So far it would appear that the market has missed both the prize of the helium and the fully funded message.
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