Atlantic Lithium (ALL), the African-focused lithium exploration and development company targeting to deliver Ghana’s first lithium mine, announced its Quarterly Activities and Cash Flow Report for the period ended 30 June 2024. Total Mineral Resource Estimate for the Company’s flagship Ewoyaa Lithium Project increased to 36.8Mt at 1.24% Li2O, reported in accordance with the JORC Code (2012). ALL said considerable progress has been made towards advancing the Company’s flagship Ewoyaa Lithium Project towards shovel-readiness. The Project is set to be one of the leading hard rock lithium projects, expected to generate significant benefits to the local communities in which it operates in the Central Region, and to Ghana more broadly.
Comment: It would appear that ALL is doing everything right at the moment, apart from with relation to its share price. Presumably, the market wants to see Ewoyaa more than shovel ready before bidding the share price up.
Jersey Oil & Gas (JOG), an independent upstream oil and gas company focused on the UK Continental Shelf region of the North Sea, advises of changes announced to the Energy Profits Levy in a policy paper published on 29 July 2024 as part of announcements made by the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP. JOG said the Greater Buchan Area joint venture will carefully consider the impact of the tax changes to the economics of the development and project sanction. The full implications will, however, only be clear when the level of capital allowance claims available as deductions to the EPL are provided in the October Budget.
Comment: The new government’s attempt at ensuring energy security has clearly been centred on closing down domestic sources of energy, perhaps in accordance with our friends at Just Stop Oil. This is clearly not a winner for the likes of JOG, and of course pensioners looking to stay warm with winter. But then again pensioners are not working people, and do not fall under Labour’s main concern.
Argo Blockchain (ARB), announced that it has entered into a securities purchase agreement for a private placement of its ordinary shares and accompanying warrants to purchase Ordinary Shares to an institutional investor for gross proceeds of approximately GBP £6.5 million. The net proceeds of the Private Placement will be used by the Company for working capital and general corporate purposes, including the repayment of indebtedness.
Comment: Bears of ARB will no doubt be very disappointed that ARB has managed to wangle a decent amount of cash to keep it going. Perhaps the prospect of Trump delivering a Bitcoin reserve in the US has been behind the sugar daddy investor?
Eco (Atlantic) Oil & Gas (ECO), the oil and gas exploration company focused on the offshore Atlantic Margins, is pleased to announce its audited results for the year ended 31 March 2024. The Company had cash and cash equivalents of US$2.97 million and no debt as at 31 March 2024. ECO said it made considerable progress across its asset portfolio during the financial year to 31 March 2024. This has been achieved at a time when it had a strict focus on costs, which has seen the Company operate with non dilutive financings for the last two years, and agree a farm-out on Block 3B/4B which will significantly increase its cash resources, and leave tremendous upside potential on the table in the event a discovery is drilled on the block.
Comment: ECO continues to be an undervalued and underappreciated company. But even being debt free and with cash in the bank, the market seems to be saying, “show us the big discovery.”
Premier African Minerals (PREM), announced that the special resolutions proposed to shareholders at the General Meeting held on 29 July 2024 were duly passed.
Comment: Increasing headroom to raise further cash is something that PREM has been very good at in the recent past. As yet, we do not know whether this is a case of turkeys voting for Christmas, as until the company delivers at at Zulu, both the turkey aspect and the Christmas aspect are pending. What we do know is that as far as the share price is concerned, PREM is running out of road.
Ondo Insurtech (ONDO), a company in claims prevention technology for home insurers, is pleased to announce that it has signed a contract with a U.S. super regional personal lines insurer that manages over $2.0bn of personal lines home, motor and umbrella insurance policies. ONDO said it was thrilled to partner another well-respected U.S. insurance brand and look forward to doing a great job for their homeowners starting in New Jersey where it was already fully operational.
Comment: ONDO has announced a string of contracts, very often with significant counterparties. What the market may be asking though, is when these will add up to profitability for the company? Ideally, this will be in the next year.
Yellow Cake (YCA), a specialist company operating in the uranium sector holding physical uranium for the long term, reported its performance for the quarter ended 30 June 2024. YCA said it continues to believe the same supply demand fundamentals that have driven the rise in the price of uranium remain as valid today as they have been for five years and this period of consolidation presents a new opportunity for investors to gain exposure to the commodity. The uranium price remains significantly below historical highs, despite the overwhelming case for the commodity, driven by a marked acceleration in global demand for nuclear energy.
Comment: Shares of YCA are still well down on their 2023 highs. The question is whether the market is right to be valuing the company according to the uranium price, or undoubted demand for the commodity?
Microlise Group (SAAS), a provider of transport management software to fleet operators, is pleased to provide a half year update on trading for the six months ended 30 June 2024. The Group expects to publish its interim results in late September 2024. ARR of £54.0m, growth of 20.6%, of which 11% is organic. Group revenue of £39.1m, growth of 15.4%. Recurring revenue growth of 21.5% of which 11% is organic. Adjusted EBITDA of £5.2m, representing margins of 13.4%.
Comment: SAAS continues to be one of the best small cap / growth companies around. But it also continues to be flying under the radar with investors, a state of affairs that needs to change.
Rome Resources (RMR) provided an update on drilling operations at the Company’s flagship project located in the North Kivu province in the Democratic Republic of Congo which comprises the Kalayi prospect, the Mont Agoma prospect and the Mont Agoma Northwest prospect. RMR said it was hugely pleased to be mobilising drilling units to site to commence the Company’s 2024 drill programme immediately following our successful fundraise and admission to AIM last week. It is looking forward to regularly updating the market over the coming weeks and months as the drill programme progresses.
Comment: RMR was always looking to hit the ground running after listing, and just days after its listing, this is what it has done. The promise of regular updates over coming weeks should allow the shares to take off accordingly.
Mining Minerals & Metals plc announced the completion of its acquisition of Georgina Energy Plc and the admission of its enlarged share capital of 90,088,396 ordinary shares of 5 pence each at an issue price of 12.5 pence each to trading on the Official List and the London Stock Exchange from 8:00a.m. on 30 July under the name “Georgina Energy Plc”, which will be effective once processed by Companies House and the TIDM code “GEX”.
Comment: Shares of GEX have opened at a decent premium to the 12.5p issue price, something which one would have expected given the Mosman connection, as well as its strong helium / hydrogen credentials.
Kavango Resources (KAV), the Southern Africa focussed metals exploration Company, announced that ongoing processing and interpretation of Inversions from Airborne Electromagnetic data have so far identified over 90 interpreted trap-site features believed to be associated with doubly plunging anticlinal fold and fault structures at the 6,200km2 Karakubis Copper Project in Botswana’s Kalahari Copper Belt. KAV said it was extremely pleased with how exploration of our 6,200km2 Karakubis Copper Project is progressing. This is an extremely large project that appears increasingly prospective for large-scale copper deposits.
Comment: KAV has already re-rated well as it became evident that the company is one of the few genuine explorers of scale and well funded accordingly. We can expect the re-rate to continue.
Altitude Group (ALT) report finals to March 2024 with a record year as Revenues increased 33% to £24m and a 30% increase in Operating Profit to £2.4m. ALT, is a soup to nuts service solutions provider to branded merchandisers for promotional products and e-commerce which is a large global market worth c. $28 billion. The investment in Merchanting growth is the significant growth driver supported by the Services division which continued to outpace the greater promo industry. Its cash remained robust at £1.2m despite increasing investment in developing new markets. A major new US contracts worth $30m over five years will start contributing and the current year is reported to have started strongly .
Comment Jon Lev: The EPS is a round 1p making a P/E of 45x at 45p and Mkt cap of £32.6m. There is no dividend, so suggesting a strong 2025 is already expected.
Deltic Energy (DELT), the AIM quoted natural resources investing company with a high impact exploration and appraisal portfolio focused on the Southern and Central North Sea, has been informed by Shell U.K. Ltd, the Operator of Licence P2437, that drilling operations on the Selene exploration well, well number 48/8b-3, have commenced.
Comment: Shares of DELT have made a tentative attempt to recover in recent weeks. It is to be hoped that the commencement of drilling will allow the stock to make more of a rebound than it has thus far.
Xtract Resources (XTR) provided an update on exploration taking place on Licences 29123-HQ-LEL, 30458-HQ-LEL, 30459-HQ-LEL, 21850-HQ-LEL and 21851-HQ-LEL located in NW Zambia within both the Western Foreland and Fold & Thrust Belt domains. XTR said its work on the NW Zambia exploration licences has been very progressive to the point that it has identified initial drill targets which it expects to commence drilling before the end of the third quarter this year. The licences are centrally positioned relative to the Western Foreland geological architecture. Field work greatly added to our previous information base, and it is optimistic about its targets and the general licence area.
Comment: XTR’s Zambia licenses are compelling indeed, something which on their own could lead to the long awaited re-rate for the shares, holders are currently on standby for.
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