i3 Energy (I3E), an independent oil and gas company, announced the audited results for the year ended 31 December 2023. I3E said it looks forward to 2024 and beyond in a much-strengthened financial position, with a strong balance sheet, and growing relationships with providers of debt capital for growth. Its core asset base continues to perform consistently well and will underpin the development of the significant undeveloped reserve and resource potential in its portfolio. It looks forward to executing a successful drilling programme in Canada in 2024, in what it believes will be a more positive pricing environment, growing production and continuing to return cash to shareholders to deliver on its total shareholder return model.
Comment: I3 looks to be on the front foot once again, with the real kicker being that the company will be able to add to the cash it has already returned to shareholders. All that is left is for a decent re-rate for the shares back towards the 20p zone.
European Green Transition (EGT), a company developing green economy assets, announced it has entered into an exclusive option agreement to commence due diligence on and potentially acquire a copper tailings recycling project in Cyprus. EGT this Option agreement is an example of EGT’s strategy in action, broadening its focus and expanding its scope to access green economy projects in Europe. The Limni Project perfectly fits our aim to pursue what it believes are high quality opportunities where it can potentially generate near term cash flow efficiently.
Comment: EGT shows how to hit the ground running so soon after its listing. This is especially the case as far as delivering near term cash flow.
Thor Explorations (THX) provided an operational and financial review for its Segilola Gold Mine, located in Nigeria, and for the Company’s mineral exploration properties located in Nigeria, Senegal and Burkina Faso for the three months ending December 31, 2023. THX said despite the operational challenges, it was pleased to have produced approximately 85,000 ounces of gold in 2023 versus the original mine plan projection of 72,000 ounces. This was achieved whilst carrying out certain plant upgrades which would also optimize gold production for the remainder of the Segilola mine life.
Comment: It would appear that THX is very much back on track, after issues that hurt the share price. It should be full steam ahead for the company, especially in terms of the gold production.
Upland Resources (UPL) announced that the monthly shareholder progress report for March & Apri. UPL said it is now technically and financially well-positioned to deliver on its intended strategy. It is committed to updating the market further on its ensuing activities, including the progress of its Joint Venture discussions.
Comment: Massive speculation continues at UPL, perhaps rather too massive that can be sustained. This is especially the case given the speculation regarding the cash needs of the company.
One Media IP (OMIP) report finals to October with a 5% increase in revenue to £5.4m and a lower EBITDA of £1.4m (£1.8m). Its Operating profit reduced by £0.4m to £0.5m reflecting continued strategic investment into TCAT. The net cash is £1.2m allowing the dividend to be maintained. OMIP have built a library of ‘nostalgic’ focused rights including songs by Gloria Gaynor, The Drifters, Louis Armstrong, Don Williams and James Brown etc etc… The streaming rights are distribute to 600 digital stores in 202 territories. TCAT ‘Technical Copyright Analysis Tool’ is an anti- piracy platform with trials underway with internationally recognised songwriters and two major record labels and world’s largest digital music distributor. TCAT could be profitably spun-off as standalone business.
Comment: The slow organic growth and along track record as a listed company leaves the shares at 4.5p and a Mkt cap of £9.45m but the potential for corporate action could stimulate interest.
Arrow Exploration Corp. (AXL) the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, announced the filing of its Annual Audited Financial Statements and Management’s Discussion and Analysis for the quarter and year ended December 31, 2023. Significant 79% growth in total oil and gas revenue to $44.7 million, net of royalties (FY 2022: $25.0 million). Net loss of $1.1 million inclusive of an impairment loss of $11.8 million (FY: 2022: net income of $0.3 million). Adjusted EBITDA more than doubled to $27 million (FY 2022: $12.5 million), with Q4 2023 EBITDA of $7.1 million compared to $4.5 million in Q4 2022. Cash position of $12 million at the end of 2023. AXL said 2023 was a great year for the Company on all fronts. It saw substantial growth in production, revenue and EBITDA and its healthy balance sheet supports the aggressive capital program planned for 2024.
Comment: AXL remains one of the best junior oilers on the London market, and the London market being what it is, has not exactly received the kind of rating that it deserves. Presumably the value here will eventually out. The message has yet to be delivered.
Zenova Group (ZED), the fire suppression and interdiction solutions Company, announced that it has secured a two-year contract for 200,000 litres of its FP coating with the sprayers group, Drips and Sparks Ltd, to apply Zenova FP to steel surfaces at Gracewood Construction Ltd’s project sites in the UK. The order is worth £2.4million to the Company over 2 years. ZED said this is a major contract win for its FP paint. In addition to a significant effort from its sales team working alongside Zensafe, winning this is also the result of the Company’s now well-engaged strategy of focusing on validating and aggressively marketing its best-in-class fire suppression products.
Comment: The £2.4m order is clearly nothing to be sniffed at. The only fly in the ointment for some shareholders is that the company may need fresh funds to deliver on the deal. But even so this is a decent validation.
Beacon Energy (BCE), the full-cycle oil and gas company, announced that the drilling rig for the SCHB2 sidetrack has been released by the previous operator and will shortly commence mobilisation to the Erfelden site. BCE said it looks forward to the commencement of the sidetrack operation and remain fully focussed on establishing the optimal production capacity of the SCHB-2 well. Once a sustained flow rate is achieved, the Company aims to move swiftly to optimise and update the Erfelden Field Development Plan.
Comment: Shares of BCE have been hit hard since the autumn via the fundraising of the company. At least now there may be a route for the bulls from the current low levels as Erfelden moves forward.
Critical Metals (CRTM), a mining investment company, confirmed the commencement of groundworks for the rehabilitation of a 17 mile/28 kilometre public road leading to the flagship Molulu Project, an ex-producing copper cobalt mine in the Democratic Republic of Congo. The planned road upgrades may take between 60 and 90 days.
Comment: In the case of CRTM, it has been and continues to be the case that the focus for the company remains on Molulu, and steps to production. The latest news suggests that the waiting game will not be too long.
URA (URAH), the gemstone mining company announced the start of phased production at the Gravelotte Emerald Mine. URAH said it was pleased to have achieved the start of emerald production within a very short period and on a tight budget. With production now underway, it is focused on optimizing its equipment, systems, and scaling up production over the coming months.
Comment: We were looking for production to start by the end of April, and URAH has delivered. Ideally, the run up to a production ramp up will be echoed by a decent re-rate for the share price.
Kavango Resources (KAV), the Southern Africa-focused metals exploration company, announced the Company is proposing to raise £3,085,366 at a price per share of 1.2 pence, via an underwritten accelerated bookbuild. KAV said that as the prices of gold and copper continue to rise, this is an ideal time to make major discoveries in both metals. Thanks to Purebond’s powerful financial backing, Kavango has developed its projects swiftly in Zimbabwe and Botswana. Today’s £3.08million accelerated bookbuild will enable it to build on this momentum.
Comment: KAV takes advantage of the recent share price strength by looking to raise more cash for expansion. That said, perhaps some in the stock were thinking the company already had plenty of cash.
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