Cadence Minerals (KDNC) announced the results from the updated economic study, the progress on the environmental applications and the ongoing development of the 67% ‘Green Iron’ processing flow sheet at the Amapá Ore Project. KDNC said at the end of March 2024, its total investment in the Amapá Project had increased by approximately US$0.7 million to approximately US$13.9 million, and consequently, the equity stake in the project now stands at 34.2%. 20% increase of Post-tax Net NPV to US$1.14 billion at a discount rate of 10%, with profit after tax of US$3.14 billion over the Life of Mine. KDNC said the ongoing development of the 67% ‘Green Iron’ processing flow sheet and the Project’s 100% renewable power source exemplify its commitment to propelling Amapa forward to meet the growing demand for low-carbon iron ore and steel, while at the same time demonstrating a potential 43% uplift in projected annual net operating profit.
Comment: The latest fresh upgrade to the metrics at Amapa should not be underestimated, especially the 43% rise in projected profit. WH Ireland’s 33p a share fair value for Amapa alone, underlines the significance of today’s news versus the current 3.4p level.
Zenova Group (ZED), the innovative fire suppression and interdiction solutions Company, announced that it has received a first order valued at £83,249.50 from its newly appointed sub-distributor in Albania – AED Ltd. ZED said this order, coming on the back of the very effective demonstration day it held last month, reflects the efficiency and power of its products to tackle the growing problems around the world, as well as a further endorsement of its strategic focus. It anticipates a growing volume of sales in the region in partnership with AED, and looks forward to announcing further orders in the near future.
Comment: An 83 grand order may be regarded as a case of slowly, slowly, catchy monkey for ZED. But it may be enough to get the shares off the lows, at least in the near term.
Audioboom (BOOM), the podcast company, announced the extension of partnerships with top-tier podcasts The Broski Report, The Nateland Podcast, Serialously with Annie Elise, National Park After Dark, and Minds Of Madness. The five shows are a key part of the Audioboom Creator Network, contributing more than 70 million downloads to the network over the past year. BOOM said it continues to deepen its partnerships with some of the best podcasts in the world. Audioboom’s uniquely integrated platform will deliver best-in-class distribution, technology and monetisation to these shows for years to come, and it very much looks forward to supporting its creator partners in their success.
Comment: A decent “filler” RNS from BOOM. But offside shareholders will be looking for updates on numbers as a driver for the shares from current lowly levels.
Coinsilium Group (AQSE: COIN), the Web3 investor, advisor, and venture builder, announced that it was informed on 8 July 2024 that: Eddy Travia, Chief Executive of the Company, purchased 300,000 ordinary shares in the Company at a price of 1.67p. Following the above purchase Mr. Travia has a beneficial interest in a total of 14,456,702 ordinary shares, representing approximately 6.65% of the issued share capital of the Company. Malcolm Palle, Chairman of the Company, purchased 300,000 ordinary shares in the Company at a price of 1.67p Following the above purchase Mr. Palle has a beneficial interest in a total of 13,334,234 ordinary shares, representing approximately 6.13% of the issued share capital of the Company.
Comment: The fact that both the big wigs at COIN have bought shares underlines the value in the stock at current levels, a point that is witnessed by decent Web3 related news underlining the future direction of the company.
DG Innovate (DGI), the advanced research and development company developing pioneering solutions in sustainable mobility and energy storage, announced the appointment of Mark Carleton as an independent Non-Executive Director of the Company with immediate effect. DGI said it was delighted to welcome Mark to the DG Innovate Board. Mark has overseen a number of significant acquisitions, and his extensive M&A and global investment advisory experience will be hugely beneficial to DGI as it progresses its journey to build a significant company in the sustainable mobility sector.
Comment: Given recent trials and tribulations at DGI, the arrival of a steady pair of hands as a NED is all the more welcome. That said, if there is to be any M&A, the odd fundraise or two may be required to help the process along.
Finseta (FIN), a foreign exchange and payments solutions company offering multi-currency accounts to businesses and individuals through its proprietary technology platform, provide an unaudited update on trading for the six months ended 30 June 2024. Revenue increased by c. 42% to c. £5.1m (H1 2023: £3.6m). Adj. EBITDA increased by c. 300% to c. £0.8m (H1 2023: £0.2m). FIN said this has been another excellent period of delivery, with substantial growth in revenue and EBTIDA as it continued to increase its number of customers and average transaction value. This reflects its success in executing on its strategy to expand its introducer network and payments capabilities while maintaining the high level of customer service for which it is known.
Comment: One presumes that we shall soon see something of a J curve reaction as far as EBITDA is concerned, a fresh potential driver for the shares one what has already been a strong bull run. 50p over the summer looks to be a conservative target.
Guardian Metal Resources (GMET), a mineral exploration company focused on tungsten, copper, silver, gold and lithium within Nevada, USA, updated regarding its 100% owned flagship Pilot Mountain Project located within the Walker Lake Mineral Belt in Nevada, USA. GMET said it was now in the midst of what is without a doubt the busiest period in the Company’s history. There are several exploration and development workstreams that are all in progress and moving forward together.
Comment: Shares of GMET have been able to continue to make new highs on exploration news. One wonders how much more upside will be achieved on any developments on the US government grant front: something which would surely be quite explosive.
Zephyr Energy (ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development and carbon-neutral operations, announced the commencement of the well production test on the State 36-2R LNW-CC well at the Company’s flagship project in the Paradox Basin, Utah. ZPHR said its operations team has worked extremely hard to deliver this well, and it was delighted that it was already flowing both natural gas and condensate. While the preparation for flow testing was extended due to the impact of the heavy weight drilling fluids in the wellbore, coupled with the need for careful operating procedures in a high-pressure environment, it believes the efforts have resulted in a well that has now fully cleaned up and appears to be in a very good state for flow testing.
Comment: We have been treated to a series of benign RNS’s at ZPHR, something which has allowed the shares of the company to rally well. How much higher they will fly is clearly dependent on the magnitude of production at the State 36-2R LNW-CC well.
Cora Gold (CORA), the West African focused gold company, announced that it has completed a reconnaissance Reverse Circulation drilling programme at the Tambor gold anomaly, which is one of four key target areas within the Company’s Madina Foulbé exploration permit within the Kenieba Project Area in east Senegal. The permit is in close proximity to several Tier 1 gold deposits located within the Mako Geological Belt of the Kédougou-Kéniéba Inlier. CORA said up until this point Madina Foulbé has been largely untested, so with six of its ten high priority targets confirming gold mineralisation, it was pleased with the results received from what was a first pass reconnaissance programme. It has been able to identify multiple broad zones with elevated gold and some economic intercepts, including 10m @ 4.41 g.t Au, with over half the holes ending in mineralisation from a shallow programme designed to test a wider area. This gives it good confidence that, with further exploration, it could define resources in the future.
Comment: Given that the shares are one their lows, it is something of a relief that there is still life and potential at CORA. Obviously, the elephant in the room remains the issue of obtaining a mining permit in Mali.
Loungers (LGRS), an operator of all day café/bar/restaurants across the UK under the Lounge, Cosy Club and Brightside brands, announced its audited results for the 53 weeks ended 21 April 2024. LGRS said it achieved record revenue of £353.5m, up 24.7% on the prior year and up 22.2% when excluding the benefit of the 53rd week. Adjusted EBITDA of £59.6m representing year on year growth of 25.9%. LGRS said it continues to feel very positive about the outlook for its brands and over the 11 weeks since the year end, its LFL sales have been +5.0%. Its new site openings continue to perform exceptionally well, achieving record levels of sales, and its pipeline of new sites is as strong as ever.
Comment: LGRS seems to be an expert in showing the many other companies in this space who have struggled or failed how to flourish in the High Street, and in a cost of living crisis. One would like to know what the magic formula is, apart from just good old hard work.
Velocity Composites (VEL), a supplier of composite material kits to aerospace, announced the Company’s unaudited results for the six months ended 30 April 2024. Revenue increased 53.9% to £10.7m (2023: £7.0m) with UK sales up 4% and a £3.6m contribution from the US as programmes continue to transfer and ramp up. EBITDA loss of £0.2m (2023: £0.9m loss). VEL said it was on track to achieve profitability and be cash generative in H2 FY24.
Comment: The run up to a company heading into the black is usually one of the sweet spots in terms of the share price, something which the post May rally for the stock underlines. Last year’s peak near 60p versus around 40p makes for a decent target over coming months.
Haydale (HAYD), the global Advanced Materials company, announced that it has signed an agreement with a Chinese tooling manufacturing company to facilitate the distribution of Haydale’s world leading Silicon Carbide whisker reinforced cutting tool parts to new markets in Asia. This agreement specifies a progressive minimum annual financial commitment for the partner to place US$4.0m of orders with Haydale over the duration of the five year deal. HAYD said it was excited to sign this agreement with its Chinese partner to help to bring its innovative silicon carbide cutting tool materials to China and the Asia area. It represents a significant opportunity for it to expand its international footprint and to support the growth of our manufacturing operations in the United States. It looks forward to a successful collaboration that will drive value for both companies and its customers.
Comment: It would appear that as far as the extended bear market in HAYD this deal has come in just the nick of time. It will be interesting to see how much the market embraces the five year deal and “gets” the merit of the Silicon Carbide whisker.
Strategic Minerals (SML), a producing mineral company, updated on quarterly Cobre sales to 30 June 2024. June quarter sales revenue of US$1.296m, up over c.250% on June quarter 2023 (US$367k). Full year sales in 2024 now upgraded and expected to exceed US$4.0m. SML said the quarter’s sales have exceeded its expectations and bode well for a strong performance at Cobre in 2024 with forecasted annual sales now upgraded and expected to exceed US$4.0m. SML said management continues to progress negotiations with potential investors on both its Redmoor and Leigh Creek projects as well as seeing cautious signs of more widespread renewed investor interest. Until such time as a project related liquidity event occurs, the Company will continue to closely monitor short term cash flow and remains committed to avoiding the need for a dilutive capital raise, currently considered unnecessary.
Comment: It is perhaps a shame that one has to scrutinise the RNS in some detail to see what the company is actually selling (magnetite and?). But it is evident that SML is back on track in terms of sales, with $4m nothing to be sniffed at for a £3m market cap company.
Synectics (SNX), an advanced security and surveillance systems company, reported its unaudited interim results for the six months ended 31 May 2024. H1 2024 revenue increased 20% to £26.3 million (H1 2023: £21.9 million). Underlying EBITDA up 67% to £2.8 million (H1 2023: £1.7 million). SNX said it was delighted to have delivered a strong H1 2024 performance, driven by its Systems division completing delivery of several projects ahead of schedule. Against this positive backdrop, the Board remains confident in meeting market expectations for FY 2024 (£3.5m) and the Company’s longer-term prospects.
Comment: Shares of SNX are already up 80% since the start of the year. In the wake of the latest update one would expect a fresh break to the upside for the shares – well over 200p.
Abingdon Health (ABDX), reported strong commercial progress with revenues to be around 52% higher at £6.1m, 52% including a recent small strategic £0.7m acquisition of a regulatory consultancy company. Its products division made progress with the launch of 3 Boots own-label tests for Vitamin D, Iron (Ferritin) and Saliva Pregnancy. It sells Simply Test™, which is a range of self-test products and sold on-line and through distribution partners. The first ever saliva pregnancy test was launched in 400 Superdrug stores, Tesco stores and online with Amazon and its own website. The larger division is Contract Development and Manufacturing Organisation (CDMO) which makes lateral flow tests for third party customers across a range of sector with revenue up 51% to £5.5m.The interim Operating Loss was 50% lower to £1.2m and further cost savings anticipated to drive continued improvement in profit performance and cashflow. A reduced h2 cash burn leaves around £1.4m cash and the company turned cashflow positive in q4.
Comment: If there is anything to learn from today’s update at ABDX is that the ongoing stock market convention to write off “pandemic stocks” can be a mistake. Indeed, in the case of this company, the post pandemic sell off is an example of what does not kill you makes you stronger… ( Jon Lev) At 10p the mkt cap is £12.67m and the risk now seems to be missing the upside.
Panthera Resources (PAT), with gold assets in West Africa and India, advised that the Company has commenced a diamond drilling programme on the Kalaka Project in Mali (Drilling Programme). PAT said the Kalaka Project in Mali has large scale, low-grade gold mineralisation potential. It continues to advance its discussions regarding the potential restructuring of its interest in its West African gold assets. If successful, it is anticipated that this will not only provide a path for the Company to realise significant value.
Comment: As well as the potential for a massive litigation win in India, it can be seen that PAT has other strings to its bow, with Mali a decent prospect. Neither of these aspects are priced into the value of the company – by a significant degree.
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