Ondine Biomedical (OBI), the Canadian life sciences company, announced new independent research published in the journal Science Translational Medicine showing that 86% of surgical site infections (SSIs)! after spinal surgery are caused by bacteria from the patient’s own nose, skin, or gut. OBI said the University of Washington research demonstrates the benefits of focusing on novel solutions for nasal decolonization like Ondine Biomedical’s light-activated antimicrobial, Steriwave®. Unlike traditional antibiotics, Steriwave is immediately effective with a single five-minute treatment and does not trigger antimicrobial resistance (AMR), making it an excellent alternative to the traditional antibiotics that many healthcare facilities use to prevent HAIs.
Comment: The positive newsflow continues at OBI, something which continues to be at odds with the share price. That said, it seems only a matter of time before the benefits of Steriwave® become apparent to the market.
Oracle Power (ORCP), an international project developer, announced that the Environmental and Social Impact Assessment study report for the proposed 1.3 GW renewable power plant in Jhimpir, Sindh Province, Pakistan, has been submitted to the Sindh Environmental Protection Agency for review, with a No-Objection Certificate expected to be granted thereafter as a prerequisite for commencing on-ground construction activities.
Comment: It would appear that ORCP is set to get to the promised land as far as its power plant in Pakistan, something which is yet to be factored into the valuation of the company. Clearly, the granting of the certificate would be a massive inflect point for the company.
Hydrogen Future Industries plc (AQSE: HFI), a developer of a proprietary wind-based green hydrogen production system announced Timothy Blake has been appointed to the role of Chief Executive Officer of HFI (non-Board position) with immediate effect. Professor Tom Scott has been appointed to the Company’s Hydrogen Advisory Board, alongside Dr Nicholas Blake and Timothy Blake. HFI said it was delighted that Timothy Blake has agreed to lead the business as CEO. Timothy is principally responsible for the development of what it believes will represent a game-changing performance improvement in the wind turbine sector globally, having completely rethought the traditional turbine model.
Comment: Timothy Blake has been leading the HFI story for the longest time, and therefore it is appropriate that he is upgraded in terms of management, to get the wind based energy business over the line.
Zephyr Energy (ZPHR), the Rocky Mountain oil and gas company, announced the spud and start of the main drilling operation on the State 36-2 LNW-CC-R well at Zephyr’s flagship project in the Paradox Basin, Utah, U.S. The rig-up operation for the Helmerich & Payne Rig 257 was completed yesterday, 24 April, and shortly thereafter the surface section of the well was spud. ZPHR said that after months of meticulous planning it was delighted to have commenced full drilling operations with the prime objectives of delivering a safe and timely drilling operation followed by a successful well test.
Comment: Shares of ZPHR have already been in recovery mode ahead of today’s news. One would expect the recovery here to continue for quite some time, given how painful the bear run has been.
Greatland Gold (GGP) announced that it has been granted a new Exploration Licence E38/3775 (Mount Smith) covering 555km2 at the Ernest Giles Project (Ernest Giles). GGP said the granting of the Mount Smith tenement at our Ernest Giles prospect more than doubles its exploration ground in the underexplored and highly prospective Eastern Goldfields of Western Australia. It was busy working on an updated Ernest Giles exploration program, incorporating geophysical surveys at Mount Smith. It intent is to commence a substantial drilling program on the Meadows prospect at Ernest Giles in the second half of this year.
Comment: With the gold price over $2,300 an ounce, to have GGP shares under 6p is quite a feat. But somehow the company has managed it. Presumably even doubling exploration ground (something which will need even more cash to be raised) will not move the dial for long. The hangover from the big bull run here is clearly still live.
Hemogenyx Pharmaceuticals (HEMO), the biopharmaceutical group, announced its final audited results for the year ended 31 December 2023. The Group incurred a loss for the year to 31 December 2023 of £6,696,493 (31 December 2022: £3,986,982 loss). HEMO said that while it accepts that recent market conditions have been very difficult, it has been disappointed by the successively lower price at which we have had to carry out its fundraisings in the UK market, in the light of the progress it has made and the view taken by Prevail Partners concerning its status. The capital recently raised will undoubtedly take it materially further forward and it is now looking at a number of strategies for the future development of all three of its current product candidates.
Comment: It is perhaps just as well that HEMO is apparently getting nearer to the finish line in terms of its product candidates, given the amount of cash being spent on test tubes et al. In terms of the successive raises at lower share prices, it could actually be argued that HEMO has been very fortunate that investors have stepped up to the plate financially on so many occasions.
i3 Energy (I3E), an independent oil and gas company with assets and operations in the UK and Canada, announced the Company’s 2024 capital budget and production guidance. i3 said that following very successful initiatives in the first half of the year to increase its balance sheet strength and liquidity, i3 is extremely pleased to announce a substantial $51 million capital programme for the remainder of the year, which will drill a diverse group of oil and gas wells across its portfolio in Canada.
Comment: I3 illustrates again, if it were required, that the market’s previous quibbles regarding its balance sheet were inappropriate. But at least the initiatives in this direction are paying off, and we should now see this reflected in the share price.
Corero Network Security (CNS), the specialists in distributed denial of service (“DDoS”) protection solutions, provided a commercial update to April 2024. The Company confirmed significant order momentum generated from both existing and new customers for its market-leading SmartWall ONETM DDoS protection solution, totalling over $8 million for the period January 2024 through to April 2024. CNS said it was delighted to have started 2024 so strongly, continuing the positive momentum generated in 2023. This impressive sales traction reflects the significant progress it has already made executing on its four revenue-generating priorities as it seeks to add new customers, further enhance its DDoS protection capabilities, and expand existing partnerships throughout the current year.
Comment: Shares of CNS have been in a trading range under 16p for more than 5 years. But it would appear that with improving fundamentals, they are finally set for a decent upside breakout.
Kromek Group (KMK), a developer of radiation and bio-detection technology solutions, announce that it has been awarded a contract, worth up to $2.9m, from a US federal entity for the provision of nuclear security products. KMK said it was pleased to have received this new contract, which reflects the strength of its longstanding business relationships and the quality of its nuclear security offering. It is continuing to experience excellent momentum in CBRN Detection as the threats to public security persist across the globe.
Comment: Given the 20th century geopolitical nightmare we are in, one can see that companies like KMK are and will continue to clean up.
Zinc Media Group (ZIN) reported lively finals to December with a 34% increase in revenue to £40.2m, which is ahead of market expectations. The gross margins have increased from 34% to near 40%, helped by the margin TV work and the full year impact of The Edge acquisition, which also performed ahead of expectations. Profitability is supressed as its still in an investment stage, but the loss reduced sharply to £2m from £3.3m. It made 250 hours of TV and there are currently 40 television programmes produced by Zinc companies available to view in the UK, either on terrestrial channels, on-demand or via subscription TV platforms. Its clients are basically all the TV and broadcasting channels including Sky, BBC, ITV, Discovery etc. all requiring quality content. There is £24m of revenue already booked for 2024 and a further £8m is in highly advanced stages of discussion. The shareholder lists include Hearld with 36%, Premier Miton 8.26% and Ruffer 4.5% with a free market of only 29%. For the current year EBITDA is expected to double to £2m with cash of £4.9m, this gives an EBITDA/EV value of a lowly 7x.
Comment: At 77.5p and £18m mkt cap leaves plenty of scope for the shares to light-up with further action.
Hummingbird (HUM) announced a Group operational and trading update for the first quarter ending 31 March 2024. Group adjusted EBITDA of US$7.1 million Q1-2024, an increase of US$6.9 million on Q4-2023.Yanfolila remains unchanged with guidance of 75,000 – 85,000 oz at AISC below US$1,500 oz. With the ongoing roll-out of the operational ramp up at Kouroussa, guidance will be updated once the operation nears commercial production. HUM said it is committed to reaching commercial production at Kouroussa and continuing its exploration efforts to extend the life of mine at both Yanfolila and Kouroussa. Its strategy is clear – to become a 200koz pa gold producer across multiple jurisdictions, decrease costs, extend the mine lives of its assets and drive shareholder value while upholding stringent ESG standards.
Comment: While the market seems keen on giving the HUM share price a beating on every bump in the road, today’s update reminds us that actually the company remains on track with its goals, with record gold prices not factored into the mix at all.
REACT Group (REAT), the specialist cleaning company, announced a trading update for the six months ended 31 March 2024. Adjusted EBITDA of £1.3m up 38% (2023: £0.9m). REAT said in addition to the material contracts, the Group continues to be awarded numerous small and medium sized wins which highlights its cross-selling capability. The pipeline for the remainder of the year remains robust which provides the Board with a high degree of confidence in achieving full year market expectations.
Comment: REAT continues to be a “boring” bankable company, with what would appear to be a never ending capacity to scale up the business.
Afentra (AET), the upstream oil and gas company, updated regarding the previously announced Angolan acquisition. AET said the Angolan government’s approval of the Azule Acquisition allows it to proceed with the completion of its third transaction in Angola providing Afentra a material equity position in these world-class assets. The improved fiscal terms for the Punja Discovery is another clear indication of the support given by the Government of Angola to parties willing to invest in their oil and gas sector. This further encourages it to continue to work with Sonangol and its joint venture partners to grow production and reserves as its develops the vast potential of both the producing fields in Block 3/05 and the significant discoveries within Block 3/05A.
Comment: AET has been one of the steadier ships in its space over the past year, and this had led to the market cap nudging over the £100m mark. It would appear that today’s news will be a driver for further gains.
Empire Metals (EEE), the AIM-quoted resource exploration and development company, announced the analytical lab results from an initial 18 Reverse Circulation drillholes at the Pitfield Project in Western Australia, which further extends and increases the understanding of the known areas of high-grade TiO2 mineralisation and will form the basis for a JORC code Exploration Target. EEE said what is truly remarkable about this giant mineral system, is that having now drilled a total of 108 holes for 17,035m (including seven diamond core holes for 2,025m) over a 30km strike length, it is yet to encounter any igneous intrusions or significant cross faults that could disrupt and complicate the ore geology.
Comment: EEE shares have bounced from the 6.5p zone last month, but seem to be seeking fresh momentum from the company. Today’s news helps in that direction.
Incanthera (AQSE:INC) announced that Odd Asset Management has increased its stake in the company from 11.84% to 16.4%.
Comment: One of the more exciting plays on the Aquis market, it is interesting that stakebuilding is going on at INC, while we wait on further news regarding new deals / orders in the skincare space.
Author
