22/08/2023

Powerhouse Energy (PHE), a company pioneering integrated technology that converts non-recyclable waste into low carbon energy, announced that it has raised £1 million, through a placing at a price of 0.5p. The company said the ability to raise these funds demonstrates faith in the company’s progress and enables it to move forwards with the consolidation of its staff and technology into one location. Potential customers, and development and project funding partners, will be able to meet the team and see for themselves the proof of the Powerhouse concept. This is a milestone for the company.

Comment: Given the way that shares of PHE doubled trough to peak from their June low to August peak, it was hardly surprising that the company took advantage of this to raise cash. This should allow it to progress the patent process for its new waste treatment method, and subsequently its new strategy as a waste processor.

Deltic Energy (DELT), the AIM-quoted natural resources investing company, announced its interim results for the six months ended 30 June 2023. The company said it is no exaggeration to say that the first half of 2023 has been transformational for Deltic, following the discovery of material quantities of hydrocarbons at Pensacola in the Southern North Sea. With an estimated 100 million barrels of oil equivalent, the majority of which is natural gas, this represents one of the biggest UK discoveries in over a decade, and is particularly significant considering the enormous energy security issues that the country currently faces.

Comment: 100 million barrels of oil equivalent is nothing to be sniffed at, but it would appear that so far the market is yet to re-rate shares of DELT appropriately. This process should only be a matter of time.

Empresaria (EMR) is an international staffing business, reported Interims to June, which showed the impact of challenging market conditions on its results. The Net Fee Income is 9% lower at £29.7m, but due to the leverage effect Operating Profit is down 71% to £1.3m, and a LBT of £0.2m compared to a £3.3m profit. Actions are being taken to reduce costs. The capacity in its Offshore Services was expanded as there is growth potential despite and maybe because of the global macroeconomic uncertainties. There has been a continuing share buyback program with the company recently paying 51p for shares. The recruitment market is not yet reported to show any significant or sustained signs of improvement as client and candidate confidence remains at lower levels across many markets and sectors. Its net debt increased to £8.7m from £7.9m with headroom increased to £18.4m.

Comment: Empresaria operates in 21 countries so while this presents management challenges the geographic spread and sector diversification should help reduce cyclical exposure. After Covid the price recovered from 30p to 90p with 9 months…… so traders will be watching the stock to see if history repeats itself.

Great Western (GWMO) updated on the construction of its mill for producing precious metals in Mineral County Nevada. The company said that delays are always disappointing but in this case have been beyond the Company’s control.  All the ingredients are in place to move forward and the Western Milling joint venture remains an exciting project and a top priority for the Great Western.  Costs are being carefully controlled and it plans to be ready for first production by the time regulatory approval has been secured. it cannot guarantee the timing of this approval but its aim is to be on production this year.

Comment: Missing a timeline in the case of GMWO may initially sound like a negative, but given that the market had not really factored in the previous production timeline, this delay may not prove to be too damaging.

East Imperial (EISB), the global purveyor of ultra-premium beverages, announced the appointment of Jaron Berkhemer to oversee the management and execution of their US sales and marketing strategy. The company said its US strategy is focused on the luxury on-premise channel, and Jaron knows this better than anyone I know. The fact is that he’s done it before and has the accolades to prove it. To have his oversight, experience and passion, is not only a coup but super-exciting.

Comment: While making inroads Down Under may be all well and good, it could very well be that this Stateside initiative finally gets the EISB back towards the 5p zone, which it was as recently as this time last year before much of the progress announced so far in 2023.

Yesterday after the market close, Galileo Resources (GLR) provided an update on the lithium discovery at its Kamativi Project. The company said following its exciting discovery it thought it prudent and informative to advise the market and shareholders of the underlying history and its strategy towards the Kamativi lithium and tin project. This initially reported lithium discovery has given its much encouragement and provided the impetus to increase the allocation of drilling metres to allow for definition drilling of the mineralisation.

Comment: While current stock market conditions tend to mean that any strength on good news is sold into, today’s reiteration of the company’s faith  in its Kamativi project, and its strong cash position mean that profit taking at GLR may not be appropriate.

Wishbone Gold (WSBN) announced that specialist drill rigs and support trucks have been mobilised to its Cottesloe Project to start drilling the targets identified during the research programs undertaken earlier this year. The company said it was excited to begin the drill program on both Cottesloe and Red Setter based on the extensive analysis of both properties. It believes it has the possibility of a major resource and look forward to proving it up.

Comment: With the recent equity raise out of the way, it may be that the market is happy to focus on the latest drilling news and return the shares back towards last month’s 4p plus peak in coming weeks.