Reabold Resources (RBD), the oil & gas investing company, announced a corporate and operational update covering the West Newton PEDL 183 licence and four of the North Sea offshore licences, and the commencement of a share buyback programme of up to £750,000. The company said that as announced on 31 October 2022, it intends to return £4 million of excess cash to Reabold shareholders upon receipt of the final £9.5 million net to Reabold from Shell, relating to the sale of the Victory asset. However, the Company has decided to accelerate the timing of a portion of this return by commencing an initial share buyback programme for a maximum amount of £750,000.
Comment: Today’s acceleration of the initial share buyback programme at RBD is not only just what the doctor ordered, but what shareholders will have been eagerly anticipating. This exercise should also signal to the market how undervalued the company has been for so long.
URA Holdings (URAH), the mineral exploration group, announced its audited financial statements for the year ended 31 December 2022. The company said during that the period it completed its reconstruction, refinancing and relisting, acquired two exploration licences in eastern Zambia and, most importantly, acquired on exceptionally favourable terms a South African former emerald mine – Gravelotte emerald mine. An available resource of some 29 million carats was established, with a gross value of some $260 million.
Comment: URA’s update today reminds us of the gulf between the company’s present market cap of £2m, the value of the JORC resource of $260m and the relatively slight cost of getting into production.
Hemogenyx Pharmaceuticals (HEMO), the biopharmaceutical group, announced its results for the year ended 31 December 2022. The company said the highlights during the period included nearing completion of the IND application to the FDA to enter phase I clinical trials for HEMO-CAR-T for the treatment of R/R AML. Its CBR platform extended into treatment of multiple viral infections beyond COVID-19 using single CBR-based therapeutic. It initiated IND-enabling activities for CDX bi-specific antibody for treatment of R/R AML. It successfully set up and qualified GMP manufacturing and analytical testing of cell therapies and implemented Quality System in a new purpose-built R&D/manufacturing facility.
Comment: Having raised £4m in January, it will be interesting to see how much of the operational highlights it will deliver on over the rest of this year.
Fiinu (BANK), a fintech company including the fully owned Fiinu Bank Limited, creator of the Plugin Overdraft®, provided an operational update. The company said that since the update provided on 15 March excellent progress has continued on its operational readiness. It has largely completed all requirements set for it by the PRA and FCA in order to exit mobilisation. Evidence of this has been submitted to the regulators for their review. It looks forward to working closely with the PRA, FCA and future strategic investors with the aim of commencing full banking activity without restrictions.
Comment: It is clear that Finnu has been making great progress with the PRA and the FCA, readying its cost of living crisis friendly Plugin Overdraft. And of course everyone likes working closely with the PRA and the FCA.
MGC Pharmaceuticals (MXC), a European based pharmaceutical company, provided its Quarterly Activity Report for the three months ending 31st March 2023. The company said the March quarter has proved significant for the Company as it advance progress toward Investigational New Drug (IND) submission with the FDA for key proprietary products, CimetrA™ and ArtemiC™. This clinical trial pathway and pipeline have been major catalysts in the fundraise and activities post quarter end.
Comment: The acronyms IND and FDA are a big deal for any company, and this goes for MXC as it does for any small cap growth company. Some might say that for the shares to be near year lows is rather unfair against such as fundamental backdrop.
Vinanz Limited (AQSE: BTC), the London listed Bitcoin mining company, announced its first expansion of Bitcoin mining machines since it listed on 21 April 2023 with the acquisition of 100 new Bitmain Antminer S19J Pro ASIC miners. The company said this expansion increases the number of Bitcoin ASIC miners from 20 to 120 and increases Vinanz’s combined Terrahash processing power in North America by 650% to 12,000 TH/s. Its goal is to build out a highly decentralised cluster of Bitcoin miners in the USA and Canada.
Comment: Market newbie Vinanz hits the ground running with the 650% increase in processing power, something which may at least temporarily silence the mudslingers, especially as Bitcoin continues to squeeze higher having nearly doubled since the early 2023 floor.
GreenX Metals (GRX) presented its Quarterly Activities Report for the period during and subsequent to 31 March 2023. During the quarter, GreenX completed a Placing to issue 12.4 million new ordinary shares to raise gross proceeds of approximately £4.4 million. Damages of up to £737 million have been claimed against the Republic of Poland, including the assessed value of GreenX’s lost profits and damages related to both the Jan Karski and Debiensko projects, and accrued interest related to any damages.
Comment: While GreenX holders presumably continue to lick their lips at the prospect of over £700m walking through the door, GRX is already well cashed up.
Sovereign Metals (SVML) provided its quarterly report for the period ended 31 March 2023. Kasiya’s Indicated Resource now stands at 1.2 Billion tonnes at 1.0% rutile and 1.5% graphite with over 66% of tonnes now in the Indicated category. The company said the updated Mineral Resource Estimate moved over 0.5 Billion tonnes from Inferred to Indicated – an increase of 81% to the Indicated category.
Comment: It still rather beggars belief that the market has not embraced the 81% increase to the MRE, at least in terms of the company’s share price. However, at least it does mean that those who are interested in the stock at current levels are looking at that much more of a decent value proposition.
Atlantic Lithium (ALL), the African-focussed lithium exploration and development company, presented its Quarterly Activities Report for the period ended 31 March 2023. The company said that during the quarter, it reported a significant MRE upgrade to 35.3Mt at 1.25% Li2O for the Ewoyaa Lithium Project in Ghana, announced the commencement of the 2023 exploration and resource drilling programmes and provided an update on the DFS underway at the Project and targeted for release in Q2 2023.
Comment: It is pleasing that ALL has shaken off some of the worst effects of the recent shorting conspiracy attack. The key in the near term will be to stay on the right side of the 30p a share level.
DG Innovate (DGI), the research and development company, announced its audited results for the year ended 31 December 2022. The company said that on the ground, the hard work continues for both its electric drive and energy storage teams. For the former, its SUPAR, MTorX and Marine projects are underway, and it hopes to test the next design iteration of its 250kW/400kW Pareta® electric drive in Q2 2023, in collaboration with Meritor. In terms of the latter, its Cap-Size feasibility study is ongoing, as is scale up and testing of our proprietary hard carbon anode materials, as it continue to work towards full-scale commercial production.
Comment: Shares of DGI have risen well in recent days, with the hope being that today’s reassuring RNS will keep this momentum going.
ZOO Digital Group (ZOO), a provider of end-to-end cloud-based localisation and media services to the global entertainment industry, is pleased to announce that it has successfully completed its oversubscribed Placing of £12.5 million at a price of 160 pence per Placing Share, a discount of approximately 13.5% per cent. to the middle market closing price.
Comment: Given how many people in the broking community are still bemoaning how difficult to raise money, ZOO’s £12.5m placing should boost confidence.
Ferro-Alloy Resources (FAR), the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, announced its final results for the year ended 31 December 2022. The company said it is extremely encouraging that the feasibility study results so far have met or exceeded the company’s previous work which shows how transformative the Balasausqandiq project will be for the world’s vanadium industry. The existing operation has been impacted by supply difficulties during 2022 but the plant is now fully developed and, with concentrates in good supply, it expects the existing plant to operate profitably from now on, producing a meaningful contribution to the development of the Balasausqandiq project.
Comment: FAR has been distinctly under the radar in the recent past, but today’s reminder that the plant is now fully developed should allow the latest tentative recovery of the shares from below 10p to continue.
Bens Creek (BEN) announced that it has completed the delivery, via four trains, of circa 44,000 tonnes of coal to the largest steel producer in India. The coal has been delivered to a ship berthed at the Port of Norfolk. The company said the completion of the first part of this order is a milestone achievement providing validation of the quality of its coal product, as well as confirming our ability to complete substantial orders to a marque customer on time. It is the first ‘all ship’ order that we have received, and it is confident that it will see more.
Comment: A good positive operational update from Bens, and one that just for a change does not mention MBU Capital.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.