Altona (REE), a resource exploration and development company focused on Rare Earths in Africa, announced the positive outcome of its Scoping Study for its Monte Muambe rare earths project in northwestern Mozambique, and the publication of an updated Competent Person Report. Highlights included an 18 years life of mine and Post-tax NPV of $283.3 million, Payback from first production: 2.5 years, and LoM EBITDA of $1.67 billion. The company the Monte Muambe Scoping Study is a significant milestone. This key deliverable serves as an affirmative initial validation of the Project’s economic viability, enabling the Company to establish its presence amongst other prospective REE producers in Africa. It provides, together with the MRE, a solid foundation for the Project’s subsequent progression.
Comment: Altona’s latest announcement shows not only that it is something of a dark horse, but deserves attention on the basis that it seems set to leap frog over many of its peers who may talk a good talk, but are yet to deliver.
Inteliqo (AQSE: IQO), a start-up technology company that provides sales, marketing and distribution services to technology product owners under long-term distribution agreements, is announce its unaudited interim results for the 6-month period ended 30 September 2023. The company said it is now operating profitably, with positive cash flows. Looking ahead, it is optimistic about the Group’s prospects. The Langaroo App is now generating sales from its Beta launch and Full Application is scheduled for release early in Q1 2024.
Comment: Inteliqo has been one of the Aquis outperformers since it came to market. Admittedly the bar is not that high, however we should note the company is operating profitably, something which is a stand out for a start-up.
Ondine Biomedical (LON: OBI) said that today presenting new research showing that Steriwave® photodisinfection reduced antibiotic-resistant bacteria by more than 99.9%. The in vitro study, which is being presented today at the IP2023 Annual conference taking place in Liverpool 17-19 October 2023, indicates that photodisinfection is likely to play an important role in strategies for combatting antimicrobial resistance (AMR). OBI said it continues to demonstrate, both clinically in hospitals across Canada and in the lab, that photodisinfection can provide a real alternative to topical antimicrobials which are no longer effective against an increasing number of pathogens. The evidence continues to show that photodisinfection destroys all types of pathogens including viruses, bacteria and fungi even those in biofilm, and it believes this technology can save millions of lives.
Comment: It would appear that Steriwave® is as good as Domestos, the latter promised to kill all known germs. OBI looks to have proved its photodisinfection concept, and at the right time in the wake of the pandemic.
Cellular Goods (CBX), a UK based company pioneering the use of lab-based and biosynthetic production methods for wellness and sustainability solutions, announce that the Company’s Rejuvenating Face Serum will be available as part of the Sephora sampling program from late October onwards. CBX said it was thrilled that its products will be a part of Sephora UK’s Fall Promotions Campaign this year. Participation in their promotions are a great way for its brand and products to gain more visibility and traction with new and existing customers.
Comment: It used to be Oil of Ulay, but for those who would like to have a face like a baby’s bottom it would appear that CBX’s Face Rejuvenating Face Serum is the way to go. The market may now revisit the attractions of the deal with Sephora.
Zephyr Energy (ZPHR), the Rocky Mountain oil and gas company, provided an update on the State 36-2 LNW-CC well and the Greentown Federal 28-11 well located on the Company’s acreage in the Paradox Basin, Utah, U.S. The company said its board has concluded that redrilling the State 36-2 well is the optimal path forward to harness the significant discovery made by the initial well. It is focused on both the near-term potential of the State 36-2 well location as well as the long-term potential of the Paradox project and the Board remains fully committed to its vision of opening up the next prolific onshore U.S oil and gas play.
Comment: Zephyr has gone from being a stock market darling to being a company which seems determined to get itself back on track via the “next prolific onshore U.S. oil and gas play.”
Arrow Exploration (AXL), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, announce the exercise of warrants in exchange for Common Shares in the Company by its largest shareholders and management. The warrants were issued in conjunction with the Q4 2021 financing and had an exercise price of GBP 0.09 per Common Share. The Board of Directors have determined to provide loans to each of Messrs. Jull, Abbott and McFarlane. The amount to be advanced to each Executive is $225,000. AXL said that at the Rio Cravo Este (RCE) pad, it continues with the 2023 drilling program. The RCE-6 well spud on October 4th, and drilling operations are progressing as expected. Once the RCE-6 well is complete the company plans to drill two further wells at the RCE pad.
Comment: It is / was common knowledge amongst AXL cognoscenti that once the warrants issue is out of the way the share price will be free to rally from its current artificially depressed level. It would be great to be on the board of AXL for the $225,000 advance – just in time for Christmas.
Redx Pharma (REDX), the clinical-stage biotechnology company, announces that it has conditionally raised c.£14.1 million. The company said that it is focussed on developing novel, targeted therapies for fibrotic disease and cancer in areas of high unmet medical need. This fundraise enables it to continue the strong progress of its industry-leading ROCK portfolio, specifically advancing its ROCK2-selective inhibitor, zelasudil, in idiopathic pulmonary fibrosis (IPF) and commencing clinical studies for our gastrointestinal-targeted ROCK inhibitor, RXC008, which has the potential to be a first-in-class treatment for fibrostenotic Crohn’s disease.
Comment: REDX signals the start of the end of year funding season, with a chunky raise, large enough perhaps to suggest that the 18 months liquidity crisis / bear market in small caps is finally over?
Supreme (SUP), a manufacturer, supplier, and brand owner of fast-moving consumer products, provides a trading update for the six months ended 30 September 2023. The company said it expects to report a record performance for the Period, with revenues in excess of £100 million (H1 2023: £67.6 million) and Adjusted EBITDA of no less than £15 million (H1 2023: £8.1 million). The Elf distribution opportunity has exceeded initial expectations and contributed to around half of the reported revenue and gross profit growth in the Period.
Comment: Any company which is looking to achieve records in the present environment should be noted and acclaimed. Interestingly enough the shares are only mid range in the wake of the latest positive newsflow.
Golden Metal Resources (GMET), a strategic mineral exploration and development company focused on Nevada, USA, announce that significant copper mineralisation has been identified during ground exploration at the Company’s 100% owned Garfield project located within the prolific Walker Lane Mineral Belt in Nevada, USA. The company said the more work it does at Garfield the better and better the Project continues to look. With prospecting and geological mapping now complete, we see strong evidence supporting the presence of both porphyry and skarn-type mineralisation and alteration, as well as the presence of various granitoid intrusions which could be the causative porphyry intrusions driving the copper-rich mineralisation and fluid flow across the entire Project.
Comment: One could say that the cup in the case of GMET continues to overflow with progress in building the portfolio yet further. Even better is that apparent magnitude of the latest copper-rich mineralisation.
S-Ventures (AQSE: SVEN), the company investing in brands across the natural, wellness and food-tech categories, has commenced a fundraising process intended to raise no less than £2.5m and provided an update on trading. As indicated in previous announcements, the Group requires supplementary external funding to support business operations. The fundraise would be used to support £1.25m of working capital requirements to accelerate progress, consolidate costs, and deliver efficiencies. A further £1.25m is required for the payment of deferred consideration, principally relating to the acquisition of Juvela.
Comment: Less liquidity than the Gobi deserts, retail investors already grappling with a cost of living crisis and Kafkaesque account opening procedures, red tape, bureaucracy, compliance overload, costs ballooning, and no culture of entrepreneurialism. These are just some of the aspects that an otherwise decent company in S-Ventures, with experienced management, is currently facing. What a time to be alive.
Hardide (HDD) today’s trading update for year-ending September reported a 10% increase in Revenue to £5.5m and EBIDA close to break-even. This is a significant improvement from last year’s £0.9m loss and the four preceding years of losses. There is robust demand particularly from Oil and Gas customers for its unique patented coatings technology as customers benefit from lower life cycle costs and a reduced carbon footprint. Trials are under to coat turbine compressor blades for the gas and steam turbine markets. The strategic focus is on sales and marketing initiatives to accelerate the momentum. Cash was unchanged from the interims at £0.7m after last year’s raising £1m through the £0.5m Sale and Lease back of a property and a £0.5m equity at 19p.
Comment: A reasonable business at 15p with a Mkt cap of £8m with moderate prospects but a bit more strategic ambition would help justify the AIM listing costs.
Great Southern Copper (GSCU), the company focused on copper-gold and lithium exploration in Chile, announce the results from its exploration programme at the Aurelia prospect, Especularita. The company said its boots-on-ground exploration at Aurelia has delivered yet another high-grade copper target into prospect pipe-line at Especularita. Being a replacement-type deposit, the Aurelia prospect further highlights the optionality in deposit style that the Especularita project enjoys as a whole. High copper grades and potential for scale combine to make this a very exciting target for the Company and we look forward to advancing our exploration here towards drill-testing.
Comment: Although it is difficult to imagine a mining company having boots anywhere other than the ground, it is clear that GSCU continues to make progress, albeit that the company does not have the level of stock market investor engagement it deserves.
Eco Buildings Group (ECOB), the AIM listed company is pleased to announce its final results for the year ended 31 December 2022. Revenue for the year of €0.9 million (2021 – €0.6 million). Revenue from the sale of processed marble consistent with prior year at €0.6 million (2021 – €0.6 million) driven by processing contracts in Kosovo. The company’s Shares will remain suspended until publication of its Interim Results for the Six Months ended 30 June 2023.
Comment: This is one of those situations where we are waiting on the reboot of a company. If the company can, while we wait for it to come back from suspension soon, develop a recession proof business with a strong order book, this may be a recovery situation to watch out for.
Oxford BioDynamics, (OBD), a biotechnology company, announced a strategic agreement to give Bupa patients access to OBD’s EpiSwitch CiRT (Checkpoint inhibitor Response Test). The company said joining forces with a pioneering healthcare organization like Bupa will enhance access to the EpiSwitch CiRT test across the UK. Gaining reimbursement from the UK’s leading health insurer is another milestone for the Company, as well as for Bupa customers and their doctors.
Comment: Given the already massive rally in OBD, it may be said that today’s announcement regarding Bupa is perhaps one of the few of the magnitude to take the stock yet higher.
Union Jack Oil (UJO) a UK focused onshore hydrocarbon company, announced that workover operations on the Wressle-1 well to install a downhole jet pump and recomplete the well have been successfully concluded. The workover rig has been demobilised from the Wressle site. The company said it was pleased with the operations being progressed at Wressle. The capital expenditure incurred in the completion of these works is comfortably funded from existing cash balances and will be offset against the Energy Profit Levy Tax at a rate of 129%. It looks forward to updating the market once stabilised production has been achieved.
Comment: It should be the case that with the latest geopolitical tensions and oil price reboot, investors are looking to companies like UJO in a more favourable light. This is especially true given the company’s ability to fund itself from existing cash balances. The Energy Profit Levy tax at 129% sounds a tad higher than it perhaps should be.
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