STOCK MARKET NEWS – RNS HOTLIST
RNS Hotlist: Arc, Canadian, Deltic, DG Innovate, Greatland, Nostra, Ondo, Rockfire, Tap, Trakm8
Tap Global Group (AQSE: TAP), the regulated crypto app bridging the gap between traditional finance and blockchain technology, updated on its performance since listing on the AQSE Growth Market on 10 January 2023. Revenue was £1.16m in Q1 2023 (Q1 2022: £0.25m). Average monthly revenue was up 347.5% in Q1 2023 to £385,000 (Q4 2022: £86,000) Registered users were up 30% since Listing to 144,305. The company said it will continue to pursue global expansion, the sustained growth it is experiencing in its existing markets affords it the benefit of being able to time its new market entries wisely in order to secure the best outcomes for both customers and shareholders.
Comment: Tap Global has blown the lights off on all the key metrics, apart from its share price, which seems to be something of a mystery. Nevertheless, with cryptos proving their worth against a fiat banking crisis, the message in the RNS that “global expansion” is to be pursued means that the present rather paltry share price valuation looks to be attractive to those who would like exposure to this space.
Greatland Gold (GGP) announced the results of its 2022 drilling programme at the 100%-owned Rudall project in the Paterson Province of Western Australia. The Ramses target is located within the Rudall tenement, 20km southeast of Greatland’s Havieron gold-copper project. The single drill hole testing the Ramses target was supported by a Western Australian Exploration Incentive Scheme (EIS) grant. The company said its recent drilling at Rudall has delivered a significant and high-grade result. While recognising the high-grade intercept is at depth, the strong gold mineralisation and supporting pathfinder geochemistry in consistently altered and veined basement sediments continues to highlight the outstanding prospectivity within Greatland’s tenement package and the Paterson Province in general.
Comment: GGP is still seeking out that RNS which will turn the tide as far as the share price. As things stand it would appear that this is a journey which will require further patience, despite the turnaround in the gold price.
Ondo InsurTech (ONDO), the London-listed leader in claims prevention technology for home insurers, announced a new go-to-market partnership with WNS (Holdings) Ltd, a business process management (BPM) company quoted on the New York Stock Exchange (NYSE:WNS). ONDO said this is a game-changer proposition within the home insurance industry which can considerably accelerate it business scaling. With the WNS loss reduction guarantee, insurers are incentivised to move straight to large scale rollouts to deliver a guaranteed improvement on their loss ratio.
Comment: Although shares of ONDO have been treading water for much of the past year, today’s announcement provides an opportunity for the market to begin to understand the international potential of the company.
Rockfire Resources (ROCK), the base metal, gold and critical mineral exploration company, is announced that the company’s environmental study permit at Molaoi has been approved by the Greek Government. The company said its planned drilling for the remainder of 2023 is designed to upgrade the resource from ‘Inferred’ to the ‘Measured and Indicated’ categories. Once this milestone is achieved, the company will move as quickly as possible to complete a feasibility study.
Comment: The fundamentals have turned around in an impressive way since the autumn, along with the share price. The latest permit news serves to finesse ROCK’s position still further.
Arc Minerals (ARCM) announced that through its subsidiary, Unico Minerals Limited it has signed a binding joint venture agreement with a subsidiary of Anglo American plc in respect of its copper interests in North Western Zambia. Under the Joint Venture Agreement, Anglo American will have the right to retain up to 70% shareholding in the Joint Venture company based on previously announced exploration expenditures. The Joint Venture Agreement, including related investments and cash payments, is subject to certain conditions precedent being satisfied, including normal regulatory approvals in Zambia. The company said it was very pleased that it has signed a binding Joint Venture Agreement with Anglo American, a major turning point for Arc Minerals. Upon closing this will see the recommencing of the exploration campaign by the Joint Venture under the management of Anglo American.
Comment: Arc fans have presumably been waiting on this RNS for the longest time. Hopefully, the share price will respond as they would wish.
Deltic Energy (DELT), the AIM-quoted natural resources investing company, announced its audited results for the year ended 31 December 2022. The company said Pensacola entirely vindicates its long-term business strategy of identifying high-value exploration assets at a very early stage and bringing them to fruition. It is now in the enviable position of deciding how best to appraise and develop this 300 BCF discovery alongside our partners.
Comment: Operational contingencies aside, a doubled cash position up to £20m and no debt, means that Deltic really is in an “enviable position.” Why the shares are near two year lows is something of a mystery: perhaps the market likes companies laden with debt and with no cash?
Canadian Overseas Petroleum (COPL), an international oil and gas company, updated on its operations and announced the appointment of an additional Non-Executive Director. The company said its recent Bond issue has allowed it to embark on long planned projects to remove the constraints and bottlenecks to our oil production from our Barron Flats miscible flood. It is embarking on these projects after a very difficult winter in Wyoming. The Joint Venture discussions continue to move forward and it is encouraged by their recent progress.
Comment: COPL comes up with a rather steadier RNS than many of late, something which will be required for the rest of the year in order to settle nerves.
Trakm8 Holdings (TRAK), the global telematics and data insight provider, announced that it has been awarded a new contract with Freedom Services Group. This contract is expected to generate revenues in excess of £6m over the first three years. TRAK said it has been supplying devices and data to Freedom for some two years via a third part. This contract helps to underpin the Board’s expectations for the growth of Trakm8’s insurance business.
Comment: Shares of TRAK were already up nearly 50% off their December floor ahead of today’s announcement. Ideally, the £6m contract value will focus the minds of the bulls.
Nostra Terra (NTOG), the international oil & gas company provided a production and operations update for the company for Q4 2022. The company said it was very pleased to have finished the year at our highest production level, some 30% higher than the start of the year. The Fouke wells have delivered multiples of our initial investment and remain strong producers. The ongoing technical work in our 100% Pine Mills acreage is very exciting.
Comment: NTOG did briefly get a lift last year as the oil price soared. However, it may be that the market would still like to see more than a 4% quarterly production rise in order to get excited.
DG Innovate (DGI), the research and development company, announced an update on the progress of the company’s collaboration with tier one commercial vehicle and off-highway axle and transmission suppliers, BRIST Axle System S.r.l. and BASE Studio Arge ve Teknoloji Sanayi A.S., as announced on 23 February 2023. The company said the collaboration with BRIST and BASE is already accelerating DG Innovate’s transition to becoming a full-scale commercial supplier. Since signing the Collaboration Framework Agreement at the end of February it has been working hard with BRIST and BASE to formulate an appropriate product strategy to ensure it both maximises the market opportunity and can achieve commercial revenues as soon as possible.
Comment: The “smart money” has been backing DGI since it came to market, despite the share price weakness, something which should end in the wake of today’s inflection point RNS. With a seller in the stock cleared and now that we are in the run up to the company being revenue producing, DGI could be said to be offering a bargain hunting opportunity.
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.