ECR Minerals (ECR), the exploration and development company focused on gold in Australia, announced an extension of the directors’ salary sacrifice scheme as well as the issue of new ordinary shares in respect of the existing salary sacrifice scheme. ECR said board members are continuing their ethos of aligning themselves with its shareholders and conserving the Company’s cash resources.
Comment: It is sadly the case that for many small cap companies, the cost of being listed with nomads, auditors, lawyers, accountants, exchange fees, insurance et al, is more of a burden than directors salaries. But the hair shirt approach here at ECR in terms of salaries is and will be continue to be appreciated by the market.
Eco Buildings Group (ECOB), the UK-quoted modular housing company, announced that the government-approved testing department at the Catholic University of Chile in Santiago, has informed the Company that its wall panels, have successfully passed the government’s rigorous testing program for use in its construction market. ECOB said obtaining approval in a market with such exacting standards as Chile, is a significant milestone for Eco Buildings Group. This opportunity is expected to complement its existing €114M order book in Europe, into which the Company expects to shortly commence deliveries from its recently upgraded factory in Albania.
Comment: ECOB has been touting its €114m pipeline for quite some time, something which sounds impressive for an £8.1m market cap company. Ideally, news like today’s will mean ECOB now simply starts to get on with the job.
Loungers (LGRS), an operator of all day café/bar/restaurants across the UK under the Lounge, Cosy Club and Brightside brands, announce the opening of a number of new sites since its last update on 29 January 2024, bringing the current total to 257 sites. LGRS said with a new site opening every 10 days so far this year across a wide variety of locations in the UK, Loungers continues to go from strength to strength with a fantastic pipeline ahead. It still firmly believe that there is scope for over 600 Lounges, and are more excited than ever about the future of this business.
Comment: Where angels fear to tread is one’s initial reaction to the gung ho expansion at Loungers. Presumably the proof of the pudding will be revealed relatively soon. In the meantime, it is off to enjoy the delights of the Sarto Lounge, Sidcup.
Audioboom (BOOM), the podcast company, announced that Michael Tobin OBE, non-executive Chairman of the Company, purchased 2,000 ordinary shares in the Company on 17 April at a price of 250 pence per ordinary share.
Comment: The initiation of the last series of share purchases by the Non Exec Chairman accompanied a share price decline from approximately £15 to under 200p, and with no bid for the company either. Hopefully, this new initiative will do the oppositive.
Jubilee Metals Group (JLP), a diversified metals processor in Africa, published its Operational Update and production figures for the quarter ended 31 March 2024 and also provided an update on its rapidly expanding partnerships with small-scale copper miners in Zambia. JLP said it remained firmly committed to replicating the success of this modular expansion strategy at its Zambian Operations. It was encouraged by the team’s ability to overcome the final frustrating logistical difficulties that have challenged the completion of Project Roan. Project Roan offers it the ability to significantly step-up its copper production in Zambia within the current quarter.
Comment: The main reasons for the relative underperformance of JLP in the near term have been the ongoing lack of understanding in the market of the merits of metals processing, the company perhaps over egging its difficulties, and the growing pains of a sprawling business. One can sense though that this negative period for the shares is finally at an end.
Cadence Minerals (KDNC) announce progress on the environmental applications and the ongoing development of the 67% ‘Green Iron’ processing flow sheet at the Amapá Ore Project. KDNC said the early submission of its environmental reports underscores the Project’s commitment to sustainability and efficient project management, and this, along with the anticipated approval of our installation license for the current year, is paving the way for the rehabilitation and commissioning of the Amapá Project.
Comment: KDNC is really gathering a head of steam as far as the Amapá Ore Project is concerned, and one would expect this progress to be reflected in the share price, as it rebounds from the latest fundraise.
Thor Explorations (THX) provide an operational update for the Segilola Gold mine, located in Nigeria, and for the Company’s mineral exploration properties located in Nigeria and Senegal, for the three months to March 31, 2024. THX said that with a healthy stockpile and a rapidly deleveraging balance sheet, it is strongly positioned during these periods of high gold prices for a financially robust Q2. It expects a stronger level of production during the remainder of the year and are tracking to meet this year’s guidance of 95,000 to 100,000 ounces at an AISC of $1,100 to $1,200 per ounce.
Comment: THX remains something of a Cinderella stock in terms of its stock market rating, especially given the relatively low cost of production, high gold price, and remaining on track for guidance. The shares really should be on the right side of 20p, especially as the company pays down debt.
East Star Resources (EST), the Kazakhstan focused copper exploration and resource development company, presented its annual financial results for the year ended 31 December 2023. EST said by the end of the year, it had confirmed the Verkhuba Copper Deposit, and its potential for open pit development. It is now on the cusp of delivering a maiden JORC Inferred Resource before drilling again this season as a precursor to an economic study to demonstrate the low-cost development potential.
Comment: Post period shares of EST have rocketed on Verkhuba sale potential and one would expect this momentum to be continued over the near term, underpinned as we go into the drilling season again. The shares were 6p two years ago, why not now?
Empire Metals Limited (EEE), the AIM-quoted resource exploration and development company, is pleased to announce that further to the announcement of 27 March 2024, the Company has now successfully completed its third phase of reverse circulation drilling at the Pitfield Project in Western Australia. EEE said it continues to move at pace with development at the Pitfield Project, our latest round of drilling has been successfully completed ahead of schedule and on budget. Its ambitious development plan at Pitfield, will see delivery of a demonstration plant next year.
Comment: One can see that EEE is keen to get its share price back above the 10p level. While today’s RNS may not quite be the one to do this, a buy on dips strategy here could pay off from current levels.
Great Western Mining (GWMO) announced that it has exercised an option to acquire the Olympic Gold Project in Mineral County, Nevada. GWMO said the Olympic Gold Project has become an important component of its exploration activity as well as a potentially key source of feedstock for its milling operation, which is ready to start operations once an environmental permit is in place. It is very pleased to have been able to move Olympic from option status to a fully integrated part of portfolio.
Comment: Just when you may have thought GWMO has enough on its plate, it adds some more. With gold at record levels and set to go much higher, this latest move could be a decent driver for the company.
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