To paraphrase an old advertising campaign: A de-listing a day, helps the stock market go away.
Today it was the turn of Superdry (SDRY) and Clarke T (CTO): “in sure and certain hope of the Resurrection to eternal life” after being listed.
Chill Brands Group (CHLL), the consumer packaged-goods distribution company, unveiled a TR1 in which Jonathan Mark Swann upped his stake from 12.05% to 13.45%.
Comment: This TR1 is intriguing as it might hint that someone is thinking that CHLL may finally reveal its vape sales numbers, and that they might actually be good…
SEED Innovations (SEED), the AIM-quoted company investment company, announced that it has declared a maiden special dividend of 1.0 pence (£0.01) per SEED Share. This follows the Company’s realisation of its investment in Leap Gaming as originally announced on 7 December 2022. SEED said it has long been an ambition to pay a special dividend to reward shareholders. Post payment of the dividend Seed retains in excess of £4m in cash and it continues to seek opportunities that it believes could see significant returns for its shareholders.
Comment: While investors are supposed to love dividends, especially special ones, some might argue that the sure fire way of SEED getting a proper stock market valuation would be to deliver even more of a share buyback than is currently being carried out, rather than just returning cash to shareholders. However, it is difficult to argue with the notion that Christmas has come early for those in the stock, and those who are buying ahead of the payout.
Oracle Power (ORCP), an international project developer, updated in respect of its activities during Q1 2024 as it progresses the development of its project portfolio. The company said it was delighted to announce post period end an option agreement to acquire the Blue Rock Valley Copper & Silver Project, Australia. This promising copper/silver opportunity also has considerable potential for gold and uranium, which have both demonstrated remarkable strength in recent times. It has also continued to focus on its power projects in Pakistan including its 1GW solar project in Thar with PowerChina as development partner.
Comment: Shares of ORCP have come off their lows, backed by signs of decent movement in its existing projects. Blue Rock sounds like the right deal at the right time, especially if it can be executed promptly and deliver a turn.
Ondo Insurtech (ONDO), a company in water leak claims prevention technology for home insurers, provided a trading update. ONDO said it was pleased to update the market that it expected the out turn for the year to be in line with market expectations. The recent feedback and results from its US launches are particularly encouraging and underlines the great prospects for the business as its expansion in the US continues to gather momentum.
Comment: ONDO was one of the small cap revelations of 2023, and it will be looking for more expansion, especially in the US, to maintain this momentum.
Equals (EQLS), the payments group focused on the SME marketplace, announced its final results for the year ended 31 December 2023 and an update on trading for the period from 1 January 2024 to 12 April 2024. Profit after taxation was £7.7m, up 118%. EQLS said it continued to grow strongly in 2023, achieving record levels of revenue, Adjusted EBITDA, and operational cash generation. This allowed it to continue to invest in the business and declare a maiden dividend.
Comment: Payments companies continue to be the fintech rock and roll of the moment. EQLS underlines this point with the maiden dividend, paid out of a record trading performance.
Baron Oil (BOIL) provided an update on operational activities and plans on the TL-SO-19-16 Production Sharing Contract, offshore Democratic Republic of Timor-Leste. BOIL said the successful completion of the Site Survey, leading to the selection of an improved drilling target location with optimal seabed conditions, is another key milestone towards drilling the Chuditch-2 appraisal well. It looks forward to providing further announcements on the Chuditch project, including with respect to well planning, execution and drill funding, at the appropriate times.
Comment: Although we shall probably know the name of the new James Bond before we have a successful conclusion at Chuditch, the market seems happy to speculate on the shares and this following appears very loyal.
SulNOx Group (AQSE:SNOX) unveiled unaudited Q4 revenues of £314,995, up 201% on Q3 (£104,572) and up 282% vs Q4 2023 (£82,546). It said it continued the trend of improving revenues and another record trading quarter, driven by expanding marine sales and associated third party emission monitoring equipment (£85,934), as well as new and repeat sales in Asia.
Comment: Given SNOX’s green credentials it is perhaps not surprising that the company has massive percentage improvements in its metrics. Given how low the numbers are, and the size of the market opportunity, we should see this trend continue. It is a shame the company is not more forward in singing its own praises, and did not describe what it does at the start of today’s RNS.
African Pioneer plc (AFP) the exploration and resource development company, provide an update on the exploration conducted and funded by First Quantum Minerals Limited during the six-month period to 31 December 2023. AFP said its Joint Venture with First Quantum is ground-breaking. The results generated by this programme confirm proof of concept and the objective now is to continue exploration with the mission to identify the requisite structure and lithology conducive to mineral deposition similar to the Ivanhoe deposits to the north.
Comment: It may be worth remembering that as it says, AFP is funded by FQM, but that the market still behaves as if it were having to fund itself. In addition, there would not be a JV if someone of the calibre of FQM did not believe that the Western Foreland in NW Zambia had significant potential.
Aura Energy (AURA) and Curzon Uranium Ltd. have agreed to a restructure of the historical uranium offtake agreement, materially increasing the price receivable for planned uranium production and releasing significant value for the Tiris Uranium Project. AURA said it was very pleased with the cooperation and consideration received from Curzon on this restructured offtake agreement and welcome Curzon as an important partner and Aura shareholder for the development of the Tiris Uranium Project which will have significant mutual benefits for both parties.
Comment: It may be worth noting the stock market reaction to today’s AURA news, in that given how hot uranium is, this should be a decent driver for the shares.
Golden Metal Resources (GMET), a strategic development and mineral exploration company focused on Nevada, USA, announced an exploration update at the Company’s 100% owned Garfield project located within the prolific Walker Lane Mineral Belt in Nevada, USA. GMET said 2024 is shaping up to be a very exciting year for Golden Metal as drilling preparations continue at pace for our flagship Pilot Mountain project, and in parallel it continues to deliver very exciting results at Garfield.
Comment: Shares of GMET have gone into consolidation mode since the end of January, despite enthusiastic RNS’s such as today. Presumably those in the know are waiting for US grants to hit the GMET bank account, as much as its progress on exploration.
Hummingbird (HUM) provided an update regarding operations at the Kouroussa Gold Mine in Guinea and outlines the Company’s roadmap to achieving commercial production in FY’24. HUM said that despite ongoing discussions with Corica, it has taken the action to issue a Step-In Notice to Corica to mitigate the current impacts of the temporary suspension. It remains resolute of its contractual rights and this move allows it to assume control and mobilise resources, whilst discussion remain ongoing with Corica, to resume mining activities at Kouroussa and enter the high-grade material at the Koekoe deposit.
Comment: It remains interesting how the market continues to punish any marginal issues at HUM in terms of the whole share price of the company. Fortunately, one would expect the soaring gold price to less the effects of such ongoing irrational reactions.
Rainbow Rare Earths (RBW) announced the results of the mineralogy and hydrometallurgical test work recently carried out on phosphogypsum material from The Mosaic Company’s Uberaba site in Brazil that is the subject of a MOU between Rainbow and Mosaic. RBW said that as anticipated, the Uberaba material has similar characteristics to Phalaborwa and it continues to expect that a significant portion of the process flowsheet and intellectual property developed for Phalaborwa can be applied to rare earth extraction at Uberaba. However, given the scale of the Uberaba project, it could expect a rare earths processing operation there to be significantly larger than that at Phalaborwa.
Comment: RBW seems to have allowed itself to go off the boil, despite operational progress, with the stock nearly 50% down on where it was in the autumn. Getting on the back of today’s news with enthusiasm could help a turnaround.
Sosandar (SOS), a UK fashion brand, updated for its financial year ended 31 March 2024. SOS said it has delivered a robust financial performance for FY24, delivering a profitable second half, accelerating revenue growth whilst at the same time growing our margin and generating cash. This performance has been achieved against one of the most challenging backdrops its industry has experienced and is testament to how its customers feel about its on-trend, affordable, long lasting, lifestyle appropriate clothes.
Comment: Given the space it is in, the cost of living crisis, and all the assorted slings and arrows of the retail space, it could be said that SOS is performing miracles. Of course, looking for the stock market to be sympathetic on all of this is too much to ask.
Polarean Imaging (POLX), a commercial-stage medical device company, announced the issuance of U.S. Patent 11,944,424, covering the use of Xenon MRI for cardiopulmonary blood flow imaging. The Company met with the FDA in October 2023 regarding the gas exchange indication, including cardiopulmonary blood flow imaging, and is continuing to work towards completing its plans for a clinical trial to expand the label for XENOVIEW™, the Company’s hyperpolarised Xenon MRI contrast agent.
Comment: Given the headwinds that POLX has been subject to over the years, one could say that today’s RNS could be a turnaround trigger. Alas sentiment, rather than fundamentals may be more of a driver for the company even from current levels.
Powerhouse Energy (PHE), a company pioneering integrated technology that converts non-recyclable waste into low carbon energy, announced that the manufacturing of the 2.5 tonne per day kiln for the Feedstock Testing Unit (FTU) has been completed. PHE said this is a huge milestone for Powerhouse, and it was delighted to have achieved this given the issues and delays caused by the liquidation of its previous supplier Mitchel Dryers Kingmoor. It is looking forward to the completion of the FTU towards the end of the year which will allow it to accelerate the development of commercial applications for its technology.
Comment: At first glance it appeared that the RNS was saying that PHE had finished the FTU, when it is just the kiln. But at least progress is finally being made for the end of the year.
Author
