Further to the recent RNS, Upland (UPL) reiterated, it has been in communication with the Sarawak State Government, the final authority for Onshore O&G Assets in Sarawak, to secure an interest in a production sharing contract on Block SK334. In the terms and conditions of the signed Joint Technical Study Agreement between Upland and Petros, and as a medium-term strategy, Upland has certain unique advantages over other potential bidders in a competitive bidding process. It will inform the market further in due course and looks forward to meeting shareholders at the Company AGM on Tuesday 30th 2024.
Comment: After shooting itself in the foot with the teaser RNS on July 22nd, UPL settles nerves with the last RNS, something which may wrongfoot the shorters, and soothe those in the stock waiting for their big win. Anything under 1p appears to be bargain basement territory, as we are seeing now and saw back in July last year.
Cyancannode (CYAN) report finals to March 2024 and the good news of the 60% increase in revenue to £18.7m is tempered by increased losses. The revenue growth reflects the increased deployment in India but the operating loss increased 33% to £4.2m. The profitability of India increases significantly after two years as margin in the first two years as gross margins of 35- 40% due to hardware cost growth to be 90% + due to the transition to services revenue. There are increased orders for 2.7m modules won in India taking the cumulative order book to 6.3m. The cash received from customers in in q1is 40% higher at £5m and the Cash at end of June 2024 of £1.1m. The last funding was in November for £2.5m at 10p to support ‘significant’ growth and further funding seems likely.
Comment (Jon Lev): The shares at 8.2p have a £26.5m mkt cap and although growth is coming through the cost and time taken to benefit to shareholders is depressing.
Prospex Energy (PXEN), the AIM quoted investment company focused on European gas and power projects, is pleased to announce that the Spanish regulatory authority has granted a ten-year extension, to July 2034, to the natural gas production concessions owned by Tarba Energía S.L. known as El Romeral 1, 2 & 3 from which Tarba generates electricity from its own natural gas production. PXEN said the official extension of the El Romeral production concessions for the maximum allowable term of ten years, is a very welcome step by the Spanish regulatory authorities. It is also an important official acknowledgement by the Spanish state of the crucial role natural gas will continue to play in the nation’s energy security and the ecological transition process.
Comment: Shares of PXEN have already had a decent run up ahead of the El Romeral extension, something which should serve as an added kicker for the shares towards the 10p plus zone.
URA Holdings (URAH) announced that Premier Miton has increased its stake in the emerald mining company from 6.79% to 10.32%.
Comment: Given recent newsflow, and especially the new acquisition, it is not surprising that Premier Miton has upped its stake, something which is always a badge of honour.
Sovereign Metals (SVML) announced that the dry mining trial is now complete with a test pit successfully excavated as part of the ongoing Pilot Mining and Land Rehabilitation Program (Pilot Phase) at the Company’s Kasiya Rutile-Graphite Project (Kasiya) in Malawi. SVML said completion of the test pit at this scale marks a significant achievement. The mining, hydrology and geotechnical data collected throughout is invaluable in its understanding of the orebody and the simplicity of a potential dry-mining operation at Kasiya.
Comment: Apart from the Rio factor, it is the operational progress that SVML is making which should start to move the dial for the share price, far beyond what we have already seen since the spring. The shares really should be on the other side of 50p.
Novacyt S.A. (NCYT), an international molecular diagnostics, announced an unaudited trading update for the six months ended 30 June 2024. Unaudited Group statutory revenue for H1 2024 expected to be circa £10.3 million (H1 2023*: £3.3 million), of which c.£7.8 million relates to Yourgene Health. Cash position at 30 June 2024 was £32.9 million (31 December 2023: £44.1 million), and the Group remains debt free. NCYT said the first half of 2024 has shown continued progress for us, with our efforts focused towards working as a single business, reducing our cost base and delivering growth following the acquisition of Yourgene. The settlement with the DHSC has allowed for complete focus on the integration and business growth.
Comment: Given how much cash NCYT is sitting on, the share price reaction to the recent DHSC payout was rather harsh, with today’s update likely to allow NCYT shares to put in a decent floor.
Cambridge Nutritional (CNSL), the specialist medical diagnostics company, announced its audited results for the year ended 31 March 2024, a year that has seen the establishment of a robust foundation for the future after transitioning out of a diverse group structure. Revenues for continuing operations up 30% to £9.8m (2023: £7.5m). CNSL said it was delighted to report that this proved to be a good year, through substantial commitment across the whole organisation, it has reduced production backlogs and delivered stronger financials with a 30% sales growth. It has achieved a substantial gross margin improvement enabled through improved efficiencies and productivity meaning a positive adjusted EBITDA in the financial year.
Comment: CNSL has already been a strong share price turnaround situation, as the market looked forward to the company heading into the black. One would be confident of 5p plus off the back of today’s announcement over the next month or so.
BT Group (BT.A) issued a trading update for the three months to 30 June 2024. BT said it has made a solid start to the year, with excellent growth in both fibre build and connections, and increased EBITDA. Openreach continues to build at pace and with even more efficiency, passing the milestones of 5 million connections and – just yesterday – 15 million premises built. In Consumer, the widespread availability of FTTP and 5G combined with its new EE propositions.
Comment: Shares of BT rallied some 40% during May and June, with the latest update not really being strong enough to allow the stock to rally much further in the near term.
Inspiration Healthcare Group (IHC), the global medical technology company pioneering best-in-class, specialist neonatal intensive care medical devices, announces it has signed a $4.3 million contract for the delivery of SLE6000 neonatal ventilators, First Breath™ Humidification and associated accessories. IHC said this is the largest single order we have executed for our SLE6000 ventilators and was previously delayed so that we could agree commercial terms and ensure the foundations for a long-term relationship were in place. We are confident of swifter and more streamlined negotiations on future potential orders.
Comment: Given that IHC shares have just come off their lows, today’s news should be a shot in the arm, and offer the change of the stock rebounding back towards the 200 day moving average at 31p in coming weeks.
Metals One (MET1), which is advancing strategic minerals projects in Finland and Norway, announced that the Company’s Råna Project partner and operator, Kingsrose Mining Limited, has entered into a service agreement with Arctic Drilling AS, for the commencement of helicopter supported core drilling at the Rånbogen prospect on the Råna Project in August 2024. MET1 said it’s great news that Kingsrose is ready to begin drilling again at the Råna Project. This strategic work programme is aimed at testing two compelling anomalies characterised by highly conductive EM responses down dip of nickel-copper-cobalt mineralised massive sulphide in outcrop, which were identified during last year’s core drilling and are located within a previously undrilled area.
Comment: MET1 continues to demonstrate that it is a company in a hurry, something witnessed by the latest service agreement. One would expect the shares to finally distance themselves from the 1p zone by the end of the summer as the newsflow starts to ratchet up.
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