ECR Minerals (ECR), the exploration and development company focused on gold in Australia, updated on the bulk sample results for the first four reverse circulation drill holes as well as the final two holes drilled at the Kuboid Hill prospect in Creswick earlier this year. The Company is also provided results from stream sampling that was carried out last month at its Bailieston Project. ECR said today’s news points to further potential value at its Creswick gold assets and it is looking forward to the results from the remaining bulk samples from its “best holes” following on from its ‘off the rig’ sample results, which include observations of visible gold.
Comment: The name of the game at ECR from now will be whether the company can impress the market enough to revive the momentum in the stock. Visible gold is clearly going to be a help in this respect.
Bushveld Minerals (BMN), the primary vanadium producer, announced that it has successfully secured additional funding to provide immediate working capital relief and ensure continuity of operations. The Company has entered into a binding term sheet with Southern Point Resources Fund I S.A. LP to conditionally sell the entire Vanchem asset for a total consideration of up to $40.6 million, comprising an initial consideration of US$20.6 million and a deferred consideration of between US$15 million and US$20 million. BMN said the extension of the working capital facility provides vital funds to continue as a going concern. The proposed sale of Vanchem will enable the Group to move forward in a more agile and lean manner and help pay down its creditors. Further details will be provided in due course but absent this funding the Company would have had no option but to apply for business rescue. Fortunately, its turnaround at Vanchem has allowed us to achieve meaningful value for this asset.
Comment: Given the trials and tribulations that shareholders of BMN have been in of late, the latest news from the company looks to be a distinctly bright light at the end of the tunnel. This is especially the case given the way that the company admits that it was rather on the edge financially up until now.
Mast Energy Developments (MAST), the UK-based multi-asset owner, developer and operator in the flexible power market, announced a further business operational update, capitalisation of an outstanding loan, issue of equity, and a financing transaction. MAST said it was pleased to have officially initiated the 2nd Phase work programme. It will see Pyebridge generating at optimum capacity as soon as the work has been completed, boosting revenues and profitability. It has worked closely with the Pyebridge site’s O&M contractor to source a replacement engine for the first overhaul. The company also said it was delighted to have completed the capitalisation of the existing loan and the associated capital placing via Novum. The cash proceeds due to MED under the Term Loan will bolster its runway and ability to progress the Company’s strategy.
Comment: Although it looks as though it will continue to be a long process, the turnaround at MAST does appear to be well under way, helped along by the revitalized management at the company.
Frontier Developments (FDEV), a developer and publisher of videogames based in Cambridge, UK, provides an update on trading for Frontier’s financial year 2024, the 12 months to 31 May 2024. FDEV said it was pleased to announce that its expectations for its financial performance in the current financial year have improved following the excellent reception to Planet Zoo’s arrival on console and a good ongoing performance from its other CMS titles. It is making strong progress following the reset of its strategy during 2023. It looks to the future with renewed confidence.
Comment: Those wondering why / how FDEV has been one of the better stock market performers of 2024 to date need look no further than today’s update from the videogames group. Indeed, this recovery looks to be just the start of a revival.
Challenger Energy (CEG), the Atlantic margin focused energy company, announced that it has entered into long-form legal documentation to give effect to the term sheet for an investment in the Company by Charlestown Energy Partners LLC . Accordingly, Charlestown will advance a £1.5m loan to the Company. The Company also advises that the regulatory approval process for the farm-out of a 60% interest in the AREA OFF-1 licence, offshore Uruguay, to a subsidiary of Chevron is progressing in accordance with expectations (refer to the Company’s RNS of 6 March 2024). Upon closing of the farm-out, Challenger Energy will receive $12.5 million in cash.
Comment: Given that CEG has certainly in the minnow category to date, to have Chevron anywhere near its RNS is a considerable win, and should filter through to the share price in a satisfactory way.
Union Jack Oil (UJO), a UK and USA focused onshore hydrocarbon investment company announced a positive update in respect of the Andrews 1-17 well, drilled to test the West Bowlegs Prospect, located in Seminole County, Oklahoma, United States. UJO said that in an incredibly short space of time, the Andrews 1-17 well is contributing to its revenue stream and it awaits with high expectations on the result of its follow-up well, currently in the planning phase, targeting the same Hunton formation, a prolific hydrocarbon producer in Oklahoma.
Comment: It was suggested here a while back that progress for UJO stateside would be rather quicker than on this side of the pond, and this has proved to be the case. One could almost say that the RNS Hotlist was ahead of UJO’s own expectations.
Bluebird Merchant Ventures (BMV), a gold company primarily focused on bringing historic mines back into production, announced that it has signed a $5 million Farm-out Agreement for its high grade Gubong Gold Project in South Korea. BMV said this $5 million investment is fantastic news for Bluebird on multiple levels as we look to develop the high grade Gubong gold mine. We have been working informally with our South Korean partners over the last year to find the optimal development path for Gubong and this agreement means we have a free carry on the Project to production.
Comment: This is clearly a great, and for some a rather predictable result for BMV, something which was on the cards from the start given the historic pedigree of what the company has been sitting on in South Korea. One would expect a significant share price re-rate, even given current reticent stock market conditions.
MTI Wireless Edge (MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, announce that it has received three orders totaling approximately US$3m, most of which is to be supplied in the current financial year. Two of the orders were received by PSK, part of the Group’s MTI Summit division, from two Israeli customers for the provision of services and installation of systems, with the other order being received by the Group’s antenna division for military antennas from an Israeli system house. MWE said it was pleased to receive these significant orders which demonstrate the ongoing demand and trust in its services from the Israeli government, who is the end user of the systems and represents PSK’s largest client. The order received by its antenna division also demonstrates customer satisfaction with its products, as the customer has issued a repeat order. It continues to deliver the latest technology and quality of service for its clients, and as defence spending continues to increase worldwide, it expects to see further contracts materialize.
Comment: It is evident that MWE is very much on the front foot as far as new contracts are concerned, something which presumably the market will continue to ignore. Nevertheless, at some point soon the sheer weight of the deals the company is getting over the line will deliver a decent re-rate.
Baron Oil (BOIL) announced that it has been informed that its application, as a joint venture non-operating partner, in the UK offshore 33rd Round of licensing, conducted by the UK North Sea Transition Authority, has been unsuccessful and consequently the Company has not been awarded any blocks in the Licensing Round. BOIL said it has not been offered any blocks in the offshore UK licensing round, which, together with the previously announced relinquishment of UK licence P2478, means that the Company has fully withdrawn from the UK. It can now focus all its attentions on its core area of SE Asia, where it has an exciting and valuable asset in Timor-Leste, a highly experienced operating team and a pipeline of material new venture opportunities across the region.
Comment: An interesting tone to the RNS from BOIL today, rather along the lines of “we really didn’t care about the North Sea anyway.” Given the pig’s ear the UK has made of the North Sea due to net zero concerns / economic masochism, they may have a point.
Orcadian Energy (ORCA) confirmed that the NSTA announced on Friday 3rd May a further tranche of licence awards in the 33rd Round. NSTA has indicated that Orcadian Energy will be offered a further licence in the Southern North Sea in addition to the two Central North Sea licences offered on 31 January 2024. ORCA said that following on from the very large viscous oil accumulation at Fynn, and the shallow gas prospects on the Mid North Sea High, it was delighted to have completed a hat-trick of licence awards with the SNS offer from the NSTA.
Comment: ORCA seems to be showing the aforementioned BOIL how to win with the NSTA, and done it via a hat-trick. One either has it, or one does not – the ability to win licenses that is.
KEFI Gold and Copper (KEFI), reported good progress to schedule at the Company’s high-grade Tulu Kapi Gold Project in Ethiopia. The remaining finance syndicate board processes are on track for final (conditional) approvals during May 2024, whilst Project launch preparations have commenced at Tulu Kapi. KEFI said that with projected all-In-sustaining costs of approximately US$860/oz and break-even costs (after all debt-service) of approximately $1,200/oz, this presents a solid position for generation of net cash flow to KEFI. With a now-targeted KEFI beneficial ownership 80%, this represents net cash flow entitlement to KEFI of approximately £63 million (US$74 million) per annum over the first 9 years, commencing from H2 2026.
Comment: Typically big talk, big numbers, and long time frames from KEFI. While the shares remain on the wrong side of 0.75p there is little need to get too excited.
Fulcrum Metals (FMET), a company focused on mineral exploration and development in Canada, is pleased to announced initial results of the Phase 1 sampling and testing programme at the Teck-Hughes gold tailings project, Canada. FMET said it was delighted that the results of the sampling and testing of the gold grades at Teck-Hughes have come in above expectations and at 16.9% higher than the historical reported average.
Comment: FMET has not yet got the message out that the tailings project is its way of financing the company’s exploration. Hopefully, the penny will drop in the wake of updates like today’s.
Phoenix Copper (PXC), the AIM-quoted USA-focused base and precious metals emerging producer and exploration company, confirmed that it has upgraded its mineral resources into mineral reserves, and to announce its inaugural mineral reserve statement for its Empire Open-Pit Mine in Idaho, USA. PXC said it was very pleased to report the first mineral reserve statement for its Empire open pit copper-gold-silver mine. The Proven and Probable reserves at Empire are 10.1 million tonnes containing 109,487,970 lbs of copper, 104,000 ounces of gold, and 4,654,400 ounces of silver, which equates to 66,467 copper equivalent tonnes.
Comment: PXC shares have been on the up in recent weeks, perhaps on hopes of funding news. That said, today’s mineral resources upgrade is a decent notional share price driver in its own right.
Synergia Energy (SYN) updated regarding the pending approval by the Government of India for the transfer of a 50% interest in the Company’s Cambay Field Production Sharing Contract to Selan Exploration Technology Limited. Extensive dialogue between Synergia and the two GOI regulators, the Directorate General of Hydrocarbons and the Ministry of Petroleum and Natural Gas, has been underway since early March 2024 to expedite the transfer of the 50% interest in the Cambay PSC to Selan. At this time, Synergia believes all the necessary formalities have now been processed for the GOI approval to be issued once Ministerial sign-off has occurred.
Comment: The market has been as reticent as it could have been of late regarding SYN, and presumably even today’s “it won’t be long” update will not move the dial as much as the company deserves for its share price.
Panthera Resources (PAT), the diversified gold exploration and development company with assets in West Africa and India, announced that it has entered into definitive agreements with DFR Gold Inc and Maniger Ltd to restructure the ownership interests in the Kalaka gold project in Mali and the Paimasa, Dagma and Dext gold projects in Nigeria. PAT said following a recent re-evaluation of the historical database at Kalaka and improved gold prices, the Company has elected to expand its focus at Kalaka. The change in ownership interest in Kalaka better aligns with its planned activities. It believes that Kalaka is a significant mineralised gold system with the potential for a multi-million-ounce gold resource. The Company believes that the strong gold price will underpin a lower grade, bulk tonnage development strategy.
Comment: PAT reminds us that it is not just a big legal case company, but an operational one too. The moves in West Africa remind us that that the company could win big without the aid of no win-no fee in India.
Atlantic Lithium (ALL), the African-focused lithium exploration and development company announced further broad and high-grade assay results from resource drilling completed at the Company’s flagship Ewoyaa Lithium Project in Ghana, West Africa. ALL said initial assay results from the drilling completed so far in 2024 have again delivered impressive intersections, providing confidence in the growth potential of the current 35.3Mt @ 1.25% Li2O Resource at the Ewoyaa Lithium Project.
Comment: Shares of ALL have finally found their feet from under 20p in recent months. We are looking at a situation where news such as today’s should in itself gradually lead to a positive re-rate of the company.
Mosman Oil and Gas (MSMN) the hydrocarbon, helium and hydrogen exploration, development, and production company, updated on its Stanley project in the US (34.85% to 38.5% WI) where the recent gross production has increased 84% to circa 221 boepd (30 day average flow rate in April). This is a material improvement from the recently notified March quarter gross average flow rate of 120 boepd. MSMN said it was pleased that the continued work on the Stanley project is now achieving stronger production numbers, which improves revenues and is a pre-requisite to sale of the asset in the future. This combined with the progress made in Australia, with the completion of the EP 145 Farmin, moves Moman into a more robust position with a strengthened balance sheet.
Comment: We have already been seeing the market move to re-rate shares of MSMN, and today’s update from the company underlines why. Above the 200 day moving average at 0.019p the shares technically remain on a trajectory for 0.03p plus.
Wildcat (WCAT) announced that it has signed an MOU with the Ministry of Petroleum (MOP) covering the following: To establish a collaboration agreement to form a Production Sharing Service Agreement (PSSA) between the MOP and WCAT to work together to advance the development and commercial exploitation of the hydrocarbon assets in selected fields in the Republic of South Sudan. A working party made up of members of both WCAT and MOP will be established to select suitable fields for development and agree suitable terms and conditions. The MOU is valid to 31/5/2024 and recognises the current status of existing Exploration and Production contracts in South Sudan including pre-emption rights. It can be terminated on 30 days’ notice by either party.
Comment: One senses that WCAT has put out an uncharacteristically modest sounding RNS, something which may indicate that the company is actually in a good position with regard to prospects in South Sudan. Here it would appear that all the ducks are in a row for potential production.
Hydrogen Utopia International (HUI), a company specialising in turning non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels, informed shareholders that there were 2 errors in the article published in The Sunday Times, on 5 May. 1. The Sunday Times article states that harvest is every 8 weeks. This is incorrect. Harvest is currently every 3 weeks and anticipated to reduce to every 2 weeks from late August/September when 5 commercial greenhouses are expected to be fully operational; by then, 25 harvests a year of approximately 200kg of dried flowers per harvest are expected. 2. The Sunday Times article states that HUI owns Ohrid. This is incorrect. HUI has exercised its option to acquire 49% of Ohrid Organic Limited, parent company of Ohrid Organics DOO on 29 December 2023.
Comment: Clearly the message here is do not believe everything you read in the papers. That said, getting a big spread in the Sunday Times – whether entirely factually correct or not, is quite a coup. Apparently, even journalists are human.
Cadence Minerals (KDNC) noted that ASX listed Evergreen Lithium Limited has announced the approval of its Mine Management Plan (MMP), enabling EverGreen to commence high impact exploration activities such as auger sampling and drilling at its flagship Bynoe project.
Comment: Today’s RNS reminds us that KDNC is not all about Amapa, and that its other investments are contributing to getting that project over the line.
Oracle Power (ORCP), an international project developer, announced the commencement of the Grid Interconnection Study for its proposed 1.3GW renewable power plant in Jhimpir, Sindh Province, Pakistan. ORCP said it was delighted to announce the initiation of the Interconnection Study for its renewable power plant in Jhimpir. This Study will complete its feasibility study package for the Power Plant and will be instrumental in propelling us into the FEED stage. Additionally, it will help to lay the groundwork for future confirmation of potential off-take and financing arrangements.
Comment: Almost on the sly, ORCP is clearly making progress, and not only with its small mining projects. The key here is to remember that whatever share it has of the large deals in Pakistan will be transformational to a company of its size.
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