20/07/2023

Jubilee Metals Group (JLP), a diversified metals processing group, with operations in Africa, published its unaudited Operational Update for the 12 months to 30 June 2023. The company said that it was pleased to report record production figures for the year across its entire PGM, chrome and copper operations despite numerous external power and water challenges. These numbers reflect a continued investment strategy in expansion opportunities across our business which we believe will continue to bear fruit in the short and medium term.  In South Africa, Inyoni continues to go from strength-to-strength. Its expansion strategy will see production increase further in the year ahead, as evidenced by its guidance for FY 2024 of 42 000 PGM oz and chrome production stepping up to 1 450 000 tonnes.

Comment: Today’s update from JLP should be more than enough to underline the cash generative nature of the business and the scalability, something that the stock market has never quite latched onto. For the stock to be back at 3 year lows appears to be something of an aberration.

Acuity RM Group (ACRM) announced that its wholly owned operating subsidiary, Acuity Risk Management Limited, has won a three year contract worth £388,000 with an option to extend for a fourth year for a further £125,000, to use Acuity’s software platform, STREAM®  which is used by private and public sector clients to manage their cyber security and other enterprise risks. The company said securing the future of businesses and safeguarding their valuable assets from risks is its core mission. It was thrilled to have won a significant multi-year contract with this Department, for delivering cyber security risk management solutions & services. This achievement demonstrates its commitment to providing award-winning risk mitigation solutions that protect its clients’ digital infrastructure.

Comment: The expectation for ACRM was always that there would be regular and significant contract wins, and as 2023 progresses, this is proving to be the case. We can expect a fresh leg to the upside for the shares to back towards June’s 9p plus peak.

GSTechnologies Limited (GST), the fintech company, announced that the company has entered into a legally binding sale and purchase agreement to acquire the entire issued share capital of PAYPT Finance Ltd, a Canadian company holding a Canadian Money Services Business licence. The company said following the successful integration of Angra in the UK into GST’s fintech operations, the Acquisition will enable the Group to significantly expand its innovative offerings as it seeks to provide a comprehensive financial service hub to all of its B2B customers. The Acquisition marks a further significant milestone in its journey.

Comment: Shares of GST are now back near 2023 lows, and therefore it may be the case that the latest acquisition by the company may be enough to turn the corner, shining a positive light on the group.

Shanta Gold (SHG), the East Africa-focused gold producer, announced its production and operational results for the quarter ended 30 June 2023 for its East African assets, comprising of New Luika Gold Mine and Singida Gold Mine in Tanzania and West Kenya Project in Kenya. The company said the Group’s record performance over the last quarter has been outstanding, with the 92% increase in production figures alone demonstrating the immediate clear benefits of having added Singida to its asset portfolio. With this significant increase in production combined with a better than expected cost performance, it has been able to deliver the financial results that it has always said would come with a diversified portfolio. Not only is adjusted EBITDA up 209% on Q1 at $23.2m, Singida is now driving an overall improved liquidity position, adding financial flexibility to the Group.

Comment: SHG has certainly blown the lights out with the latest announcement, something which is rather at odds with the way that the stock is near the 2023 support. Ideally, the news will cause the stock to head back to the top of the range through 13p over the course of the rest of the summer.

RC365 Holding (RCGH), a company focusing on payment gateway solutions and IT support, announced that its Hong Kong subsidiary, Regal Crown Technology Limited, signed a mPOS Development Agreement with Cooper Technology Sdn Bhd for the upgrade of Regal Crown’s existing mPOS program. RCGH said this Agreement is part of RC365’s strategy to expand into the Malaysian market and the company intends to open an office in Malaysia during Q4 FY24. Application has been made to the Hong Kong Government by Regal Crown and RCPAY Limited, a wholly owned subsidiary of RC365, for the BUD Fund FTA programme for a HK$1,000,000 non-refundable grant to each company. This grant will facilitate the expansion into the Malaysian market.

Comment: RC365 has been one of the more active performers in the small cap space in recent weeks, and now we find out why. Hopefully, there will also be some momentum after the latest news.

Ora Technology PLC (Ora or the Company), a company that intends to operate an online platform named ‘Ora Carbon’ in which users will be able to buy, sell and retire carbon credits, announced that dealings in its ordinary shares will commence from 8:00 am today, 20 July 2023, on the Aquis Stock Exchange Growth Market (AQSE Growth Market) under the ticker symbol ORA.

Comment: It may be said that any company that lists these days, especially on Aquis, must be pretty confident regarding its prospects. The carbon credits area sounds a bit 2010’s, but perhaps the online platform aspect gives it a winning 2020’s boost.

Alien Metals (UFO), a global minerals exploration and development company, announced through its wholly-owned subsidiary Iron Ore Company of Australia Pty Ltd the first batch of assay results from its recent resource definition drilling programme at the company’s 90% owned Hancock Iron Ore Project, Pilbara Region, Western Australia. The company said these initial results from the recent Sirius Extension drilling campaign reinforce the potential of the Hancock Project. These results mirror or exceed that of the Company’s resource model and we look forward to announcing the balance of the results that will support the next phase in the development of this Project in the coming weeks.

Comment: Shares of UFO have needed a shot in the arm for quite some time. It will be interesting to see whether the aftermath of the latest results and further updates will turn the tide for holders.

Premier African Minerals (PREM), provided a further update on both the progress at the Zulu Lithium and Tantalum Project and the Offtake and Prepayment Agreement entered into between Premier and Canmax Technologies Co., Ltd as announced on 6 June 2023. PREM said that it is actively involved in alternative funding negotiations to facilitate ongoing development at Zulu and the substitution of the Agreement with Canmax who have made it clear that they seek repayment and cancellation following the remedy of the Force Majeure, there is no certainty at this time that these alternative funding arrangements will be concluded. Premiers’ cash reserves remain constrained.

Comment: Today’s RNS from PREM certainly twists the knife as far as the many bulls of the stock are concerned. It is hard to see how they can glean a positive spin currently with the “constrained” cash reserves in the present environment.

Mirriad Advertising (MIRI): After being unable to find a buyer and following a convincing strategic review it raised  £6.25m at 3p in May 2023. The funding was supported by Intrinsic and Odey and yesterday the Non-Executive Chairman bought 1m Shares 1.25p and now holds 0.33%. The June Trading update reported modest sales growth to £576k but with a stronger second half anticipated. There was net cash of £9.8m and the restructuring and redundancies plans will substantially reduce the monthly burn rate so further funding is not imminent.  Its EBITDA loss, at the finals was a stunning £15.2m, so the Interims to June should show a relatively strong improvement and will be reported in the week of 21st August.

Comment: Calling the end of a bear run in a stock which has been through as much as MIRI is always going to be a challenge. Did the Chairmans buying ring the bell at the bottom….. ?

AMTE Power (AMTE), a developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets, announces a further update to its financing position. The company said it continues to be in discussions with existing and potential investors concerning raising further finance.  Having managed its resources, the company now needs to implement a solution within the next few business days.  Whilst active discussions continue with existing and potential investors, there can be no certainty of the outcome of these discussions, in which case putting the company into administration is ever more likely. In the event that the company is put into administration, trading of its shares on AIM would be suspended with immediate effect.

Comment: If there were awards for the most negative RNS’s of the year, then today’s from AMTE would almost certainly be high on the winner’s podium. The issue here is whether the bottom fishers / falling knife catchers will get involved here nonetheless.