i3 Energy (I3E), an independent oil and gas company with assets and operations in the UK and Canada, announced its operating and financial results for the three and six months ended 30 June 2024. i3’s unaudited condensed interim financial statements for the three and six months ended 30 June 2024. Free cash flow (FCF)(1) for Q2 2024 was USD 28.5 million fuelled by the aforementioned Royalty Disposition and certain property divestments in the quarter.i3 posted a profit before tax of USD 24.4 million during Q2 2024 and net cash flow from operating activities of USD 7.6 million for same period.
Comment: On the face of it, it seems insane that shares of I3E are anywhere near their lows of the year, given the solid results and cash flow. Presumably, those with a Warren Buffett attitude will simply regard this as an opportunity to mop up a bargain.
Tirupati Graphite (TGR), the specialist flake graphite company and supplier of the critical mineral for the global energy transition, is pleased to announce an update in continuation to its RNS of 31 July. TGR said it was pleased to announce that full scale mining operations have commenced at Vatomina, with production focused on only the higher grade flake graphite to ensure the best price realisation. Its operational discipline and focus on the higher grade graphite have led to it reducing the overall cost structure, whilst still being able to achieve the 8,000 tons per annum production run rate. In the meantime, it remains focused on its immediate and long-term capital needs. It is also working with its auditors to publish our Annual Report, so its shares can begin trading again.
Comment: A much better update from TGR, and while we await definitive funding news, it can be seen that the management are still backing the company strongly, and that full scale mining operations are news that even the cynics will find hard to counter.
African Pioneer (AFP) the exploration and resource development company with advanced projects in Namibia, Botswana, and Zambia, confirmed that it has issued a drawdown notice for £250,000 under its unsecured convertible loan funding facility agreement for up to £1,000,000. AFP is using the Facility, to fund the working capital requirements of the Company and its subsidiaries as determined by the Company and proposes to use the funds to advance its projects in Zambia, Namibia and Botswana and Zambia and the general working capital requirements of the group.
Comment: As is typical of the London market, it seems to have forgotten that AFP has a happy backer in Sanderson, and that the facility given can go a long way to advance the company’s projects.
CleanTech Lithium (CTL), which is advancing sustainable lithium projects in Chile, announced the formal commencement of its initial public offering of Chess Depositary Interests and seeking a dual-listing on the Australian Securities Exchange. CTL said it was excited of the prospect to join the ASX which is home to many of the world’s leading lithium companies. In addition to its existing AIM listing, the dual-listing in Australia will provide it with access to a broader collection of security holders and stakeholders who have a deep understanding of the lithium industry and its importance in supporting the world’s ambitions for net-zero.
Comment: The news that the ASX listing is on its way should be a pivotal moment for CTL, especially given how long the journey has been and the trials and tribulations the company has been in during the interim. The Aussies are still keen on lithium, and CTL should find a happy additional home there, especially as compared to London.
Corero Network Security (CNS) are also listed in the US and report a partnership with stc Bahrain, the market leader in Bahrain’s telecommunications sector. CNS’s technology is a trusted DDoS protection service with proven efficacy in an increasingly complex and dynamic cyber security market. It is to deliver premium protection services on multi-year contracts to Bahrain, safeguarding against both external attack traffic and internally generated DDoS threats. CNS’s is expanding across the Middle East following several customer wins already in 2024. The Interims Trading update to June reported revenue increasing 12% to $12.2m with an EBITDA of $0.7m and net cash of $7.9m.
Comment (Jon Lev): At 19p the mkt cap is £98m which gives an EBITDA / EV of c.45x and seems up with events.
Jubilee (JLP), a diversified metals producer with operations in South Africa and Zambia, announced first production of copper concentrate from the Front-End Module at the Roan concentrator facility in Zambia following the announcement of commencement of production on 8 August 2024. JLP it is an exciting time as it commences delivering on its growth projects. The first upgraded concentrate produced from its processing modules is a significant milestone for the business allowing Jubilee to commence filling the available copper production capacity at its Zambian operations.
Comment: Rather like Hummingbird, the comms of JLP have been perhaps rather hard on itself, something which hopefully the news of first production at Roan should begin to correct. The shares should intuitively be rather nearer to May highs above 8p at the very least.
Touchstone Exploration (TXP) reported financial and operating results for the three and six months ended June 30, 2024 and updated 2024 guidance. TXP said its results for the first half of 2024 highlight Touchstone’s remarkable transformation over the past year, with notable improvements in both financial and production performance compared to the previous year. The second quarter has been particularly productive, marked by our efforts to optimize production, enhance processing capacity, and tie in our new wells to the Cascadura natural gas facility. It is excited to increase average sales volumes to 5,816 boe/d in July 2024, following the successful recompletion of the Cascadura Deep-1 well, representing an 18 percent increase from June 2024.
Comment: There certainly seems to be a disconnect between TXP’s upbeat words, and its share price currently at the lows. One would suggest that even in current stock market conditions such a state of affairs is a tad harsh.
Neo Energy Metals (NEO) announced that its newly established and wholly owned South African subsidiary, Neo Uranium Resources Beisa Mine, has signed a binding agreement to acquire a 100% interest in the multi-million pound uranium and multi-million ounce gold resources of the Beisa North and Beisa South Uranium and Gold Projects. The Beisa Projects comprise total SAMREC Code compliant resources of 90.24 million pounds of U₃O₈ and 4.17 million ounces. NEO said this acquisition marks a major milestone for Neo Energy Metals, and significantly expands our footprint in one of the richest and long-standing uranium producing regions in the world.
Comment: The market has currently been behaving as if NEO was a one trick pony, as far as Henkries is concerned, and ignoring the funding backing of Q Global. Now that it has added Beisa, there should be a significant re-rate, as the increased fundamental strength of NEO is revealed.
Kavango Resources (KAV), the Southern Africa focussed metals exploration company announced the receipt of assay results for its recent diamond drilling programme at the Nara Gold Exploration Project in Matabeleland, southern Zimbabwe. KAV said its work in Zimbabwe is progressing at such a pace that Kavango’s exploration team is increasingly focussed on exploration for mining. Its first phase of exploration at the Nara Project confirms the potential for a large-scale gold-bearing system here. It believes this is shaping up to become an underground opportunity for Kavango Mining to pursue. It is encouraged both by the grades we have encountered and widespread gold mineralisation.
Comment: Once again KAV underlines the way that it can not only acquire projects, but can acquire those with significant potential. Given its strong financial backing, there is also the firepower to develop such projects, unlike many of its peers.
Bluejay Mining (JAY), the AIM, FSE listed and Pink-Market traded exploration and development company with projects in Greenland and Finland, announced the start of low-cost & wide ranging work programmes to evaluate possible significant deposits of geological hydrogen and helium (including other industrial gas) in the Outokumpu Belt. This work stream will include integrating all historical data including seismic. JAY said these encouraging but preliminary indications of helium, hydrogen and industrial gasses in the Outokumpu Belt are very encouraging. They present a significant opportunity for shareholders.
Comment: Given the direction of flow of the share price, today’s news from JAY represents a strong opportunity to turn the direction of travel for the company in a positive way. The July spike high at 0.7p plus represents a realistic near term target for the shares.
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