SYS Group ( SYS) new management finals to March report a 5% increase in Revenue to £22.7m driven by growth in cyber security. The reported loss however, is a deep dive cleaning of £6.6m including impairment, exceptional costs associated with the transformational strategy. It raised £11.3m at 33p in June 2024, to fund an internal transformation project, strengthen the balance sheet and to provide for ongoing working capital as the business continues to drive growth, as well as liquidity for M&A opportunities. The new board lead, by Heejae Chae, who owns cir. 14%, formally with the £0.5billion IP Group, has renewed the product development and service strategy. AI will have a significant impact on businesses and represents a key opportunity for transformation. The plan is to guide SMEs through the complex AI value chain and support their transformation journey from start to finish.
Comment: (Jon lev) At 33.5p with a £28.8m mkt cap and over £8m net cash, investors are expecting some supercharged action before next year’s finals.
Greatland Gold (GGP) provided an update on activities and developments across the Company for the June 2024 quarter, and an outline of Greatland’s planned exploration program for FY2025. GGP said at Havieron, good progress was made in the quarter with the EPA’s formal decision to assess the environmental approval application. In respect of Newmont’s announced intention to dispose of its interest in Havieron and nearby Telfer mine, it continues to consider ourselves strongly positioned for any potential opportunity to consolidate ownership of Havieron on accretive terms for its existing shareholders.
Comment: Slowly, slowly catchy monkey as far as GGP is concerned. The question is whether the timeframe here is fast enough for those looking for a big win?
Vinanz Limited (AQSE:BTC), the publicly listed Bitcoin mining company with US and Canadian Bitcoin mining operations, announced that following on from launching a new Bitcoin mining beachhead cluster in Superior, Nebraska, USA, it has signed expansion agreements with hosting specialists Basic Mining (www.basicmining.com) to double its fleet of Bitmain Antminer S19k Pro 120 Terahash (TH/s) miners to twenty miners. BTC said its initial push into Nebraska has worked well and the initial launch of its maiden miners into Basic Mining’s facilities gives it confidence to increase its miners with them to the next level. These existing miners are operating seamlessly at their nameplate rate of 120 TH/s each and because power prices are competitive at 6.5c per kilowatt hour, we have decided to expand our fleet in Nebraska.
Comment: One of the few criticisms of BTC has been that the company is sub scale as far as its mining operations, something that today’s news more than addresses.
Sovereign Metals Limited (SVML) provided its quarterly report for the period ended 30 June 2024. In July 2024, Rio Tinto invested a further A$18.5 million via the exercise of options, to increase its shareholding in Sovereign to 19.76%. Investment proceeds to be used to continue advancing the Kasiya Rutile-Graphite Project in Malawi.
Comment: The presence of Rio as an investor in SVML is barely factored into the SVML share price, and this remains the value proposition for investors in the company.
GreenX Metals (GRX) presented its Quarterly Activities Report for the period during and subsequent to 30 June 2024. Subsequent to the end of the quarter and following renegotiation with Greenfields, GreenX will acquire a 100% interest in the Eleonore North project through a revised Option Agreement. Having spent the required amount on an agreed work exploration program for the Project; GreenX will now acquire the Project and conduct further exploration work before making a decision to continue with the Project by 31 December 2025.
Comment: GRX is one of the few Greenland focused companies that the market has given its due as far as the significance of its projects and their scalability.
Arrow Exploration Corp. (AXL), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, provided an update on operational activity, particularly at the multi horizon, Carrizales Norte field on the Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50 percent beneficial interest. AXL said the continued success of the horizontal well program at the CNB pad, has led the Company to plan two additional horizontal wells which Arrow intends to drill before the end of 2024, depending on technical aspects and regulatory approvals.
Comment: At 30p plus the share price of AXL is starting to reflect the fact that AXL keeps spudding here, there and everywhere. However, there is still a long way to go in valuation terms to reflect the strike rate of the company.
Electric Guitar (ELEG), the digital marketing and advertising company providing first-party data solutions, announce that it has agreed to launch Marcomms.ai as a UK joint venture with Exelia Technologies Limited. Exelia is a Cyprus-based software development business with a specialised team of developers proficient in blockchain, machine learning, data processing and AI. ELEG said AI is already causing significant disruption in the advertising industry, but marketers are learning that you need the right data for AI to work. 3radicals’ Global Data Store contains over 1 billion data points which describe how consumers interact with 3radical’s engagement tools. Being able to use this data to power our AI tools gives us a significant advantage.
Comment: ELEG has not got the love on the London market it should have, something that is not surprising given that investors here are generally only “experts” in resources. Nevertheless, first party data is a massive new frontier in tech, and ELEG is at the forefront of it, without the read across market cap.
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