13/07/2023

Conroy Gold and Natural Resources (CGNR) announced assay results from six shallow drill holes (totalling c.98m) at the Company’s Creenkill gold target in its Mines Royal (Newtownhamilton) option, located in County Armagh, Northern Ireland.  The drilling programme is being carried out in conjunction with the Company’s joint venture partner, Demir Export A.Ş. The company said this new discovery continues to emphasise the prospectivity of the region.  The initial drilling supports what was discovered during the trenching programme and the continuity of the structure provides encouragement that similar bonanza gold grades, discovered during prospecting, can be encountered by future trenching and drilling.

Comment: Hopefully the use of the phrase “similar bonanza gold grades” will heat up shares of CGNR, which have arguably been treated rather unfairly by the market, given the latest news and recent progress.

Bitso, the leading financial services company powered by crypto in Latin America with more than 7 million customers, announced its exclusive business partnership with Mobile Streams (MOS), the company specialized in data intelligences, specialist in next-gen content, and creator of Heroes NFT CLUB. MOS said it was delighted to announce this partnership with Bitso and proud to be working with the leading crypto company in Latin America to make its mission of connecting fans with the experiences and content they are most passionate about come true. It is confident that the market reach and Bitso technology, added to our NFT licenses and sports products, will make a very powerful combination for fans in Mexico.

Atlantic Lithium (ALL), the African-focused lithium exploration and development company, announced the appointment of DRA Global Limited to conduct a Scoping Study for the inclusion of a flotation circuit at the Ewoyaa Lithium Project in Ghana, West Africa. ALL said initial testwork has indicated the possibility of upgrading the lower-grade secondary product that it will be producing from the Ewoyaa Lithium Dense Media Separation plant to a higher margin spodumene concentrate product through an additional flotation circuit, downstream from the DMS plant. The higher-value product will generate greater revenues and, as such, the inclusion of the flotation circuit is expected to improve the financial outcomes indicated in the recent Definitive Feasibility Study for the Project.

Comment: ALL has gone for a business as usual approach in terms of the tone of its messaging to the market, something which may be appropriate given the malicious nature of the shorting conspiracy, however, it may need to take more steps to re-assure investors given the way that the shares have been dipping back towards March lows.

GreenX Metals (GRX), announced that it has successfully completed a bookbuild and secured commitments for 5.2 million new ordinary shares at a price of A$0.80 (41 pence) per share for gross proceeds of approximately A$4.2 million (~£2.1 million) from new and existing investors. The company said the net proceeds from the Placing will be used for exploration activities at the company’s projects in Greenland. GreenX recently acquired the option to earn 100% of the Eleonore North gold Project which has potential to host large scale, shallow, bulk tonnage gold deposits. The Project remains underexplored, with the existence of a possible reduced intrusion-related gold system being a relatively new geological interpretation based on the historical data.

Comment: With the fundraise out of the way, one would expect GRX to progress both on the fundamental front in Greenland, and in terms of its share price, which is yet to reflect the company’s activities in this giant jurisdiction.

Predator Oil & Gas Holdings (PRD), the Jersey based Oil and Gas Company, announced an update for the MOU-4 well. The company said the MOU-4 NuTech petrophysical analysis has highlighted a number of intervals to be likely gas sands, including some shallow sands that were not previously considered to be potential drilling targets. The recognition by NuTech of likely good quality thin gas reservoirs at the top of the Jurassic carbonate is particularly significant in the context of the large Jurassic structural closure that MOU-4 was purposely located at the edge of, so as to successfully penetrate the primary pre-drill target which was the Moulouya Fan. Rigless testing of the Jurassic interval will be an important step in evaluating the significant Jurassic potential within its core area of interest.

Comment: There has been quite a retreat for PRD shares this week, something which is surprising given the ongoing newsflow from MOU-4, and the further potential it may have given the nature of today’s news.

Powerhouse Energy Group (PHE), a company pioneering integrated technology that converts non-recyclable waste into low carbon energy, announced that its European Patent Application No 20751207.0; “Method and Apparatus for the Treatment of Waste Material” has been “Allowed”. The company said the application will now be progressed towards a full grant of patent which will be granted on payment of the applicable fee and will provide protection in the UK and Ireland as well as across Europe.

Comment: PHE continues to finesse its latest moves to be a powerful player in the waste industry, with the grant of the waste material being an obvious stepping stone for the company’s new focus in the sector. This is clearly something the market has not cottoned onto yet.

UK Oil & Gas (UKOG) announced that the Avington Joint Operating Committee has now formally agreed to restart oil production at the field. Prior to its 2017 shut-in, the field had produced 0.276 million barrels of an estimated mid case of 59 million barrels of original oil in place, a recovery factor of only 0.47%. As the three closest similar producing fields to Avington exhibit oil recoveries of around 6-13% of the assessed OIP, potentially significant remaining recoverable oil resources lie within Avington for future exploitation.

Comment: It is not quite the billion barrels of the Gatwick Gusher, but of course, one has to start somewhere. UKOG could do with the income from Avington, as we await the development of other assets in its portfolio.

Imaging Biometrics, LLC (IB), a wholly-owned subsidiary of IQ-AI Ltd (IQAI), announced US FDA has granted Orphan Drug Designation for gallium maltolate (GaM) for the treatment of pediatric glioblastoma multiforme (GBM). IQAI said it was very pleased that the FDA has now confirmed that the orphan drug designation for GaM applies to all GBM populations including pediatric patients.

Comment: There was a surge in IQAI shares at the end of February on GaM news, and one would hope that the confirmation update today might lead to similar interest in the stock, given the importance of the FDA seal of approval to any company in the space.

Corero Network Security’s (CNS) Interim Trading update for  June 2023  reported strong revenue growth and the repayment of its debt . Revenues in H1 are expected to increase by 20% to $10.6m and the adjusted EBITDA, to just about break-even at $0.2m and there is net cash. CNS provide high performance cyber defence solutions.  SmartWall, the ‘flagship’ product is a niche solution that defeats Denial of service attacks in real-time. Corero’s focus on its Ideal Customer Profile is building its sales pipeline and momentum continues. Annualised Recurring Revenues, ARR increased 13% to $15.3m driven by subscription-based products and DDoS Protection as-a-service which improves the earnings predictability so reducing the chances of a repeat of last year’s profit warning and surprise CEO resignation.

Comment: The shares are just off its 52-week low and recovery  to just under the sweet- point of the earnings curve  suggests the trauma is over.