Yesterday hVIVO (HVO), a fast-growing specialist contract research organisation (CRO) and world leader in testing infectious and respiratory disease products using human challenge clinical trials, announced that Octopus Investments had raised its stake in the company from 7.61% to 8%.
Comment: Octopus have been gobbling up a decent chunk of HVO shares, something which is not only a decent validation for the company, but also sits well with the 31% revenue jump announced last month.
Longspur Research released a new note on SIMEC Atlantis (SAE), saying the company is actively moving forward with the development of its second battery project at Uskmouth with 240MWh of storage and a connection date of October 2026. The move shows tangible progress as the company transforms itself into an owner and operator of storage projects at key locations in the UK. Longspur said SAE has given indicative estimate of economic performance over the first five full years of operation with revenue at £12m and EBITDA of £9m. It feels these are very achievable and would match to the low end of its expected storage spread range. This would put its farm out based valuation down to 4.2p but it remains optimistic that spreads could widen as more renewables enter the system so still see its central case of 12.7p and even high case at 25.0p as valid.
Comment: Fans of SAE are actually looking for rather more than even 25p for the stock. One would expect the recent rally to resume to leave the shares on the right side of 5p by the autumn, as more in the market wake up to the opportunity.
Andrada Mining (ATM), the African critical raw materials producer with a portfolio of mining and exploration assets in Namibia, confirmed that its subsidiary, Uis Tin Mining Company has concluded the NAD 175 million (c.£7.5 million) funding agreements with Bank Windhoek. The proceeds will be allocated primarily to retirement of existing facilities, growth initiatives, and working capital. ATM said the funds will be instrumental in accelerating its exploration efforts, enhancing its production capabilities, and creating new job opportunities for Namibians. It is confident that this investment will not only benefit UTMC but also contribute to the overall economic development of the country.
Comment: Whilst canny / professional investors are fully aware of the merits of ATM, the company has so far not managed to get its message out to the rest of us, something which leaves the stock significantly under-rated.
Oriole Resources (ORR), the AIM-quoted gold exploration company focussed on West and Central Africa, announced an update for its 82.2%-owned Bibemi orogenic gold project in Cameroon, where BCM International Limited is currently funding up to US$4 million in exploration expenditure in return for up to a 50% interest in the Project. ORR said the results reported for Lawa West are encouraging as they significantly expand the potential mineralised corridor length of the prospect, and the overall system at Bibemi. More generally, this bodes well for the discovery of additional sources of mineralised material on the Project licence that could be processed at a central mineral processing plant at Bibemi.
Comment: At first glance ORR gives the impression of being just another sub scale explorer. However, newsflow such as today’s gives a hint that this is a company which could stand out from the crowd.
Maintel Holdings (MAI) make a trading update for the six months to June. It provides cloud, network and security managed communications services on long term contracts to blue chip clients. A -1.8% decline in revenue to £46.6m, is reported whilst EBITDA grew by 28.2% to £4.8m with a better H2 expected. There is a better mix of business within the target growth markets a benefit of a streamlined business structure and price increases. There is a particular focus on key verticals of Financial Services, Retail, Public Healthcare, Local Government, Higher Education, Social Housing and Utilities. It combines best of breed technology with its own Intellectual Property, to deployed from and managed by its own platforms. The balance sheet is being deleverage following a period of higher restructuring exceptional cost and debt servicing charges, with net Debt oft £15.6 m down from £21.4m. The Interims are to be reported on Thursday 19 September.
Comment (Jon Lev): At 240p the mkt cap is £34.5m the Enterprise Vale/ EBITDA is around 5x which is low enough to be interesting.
Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company with near-term hydrocarbon operations focussed on Morocco and Trinidad announced an operations update. PRD said it goes without saying that the last 12 months following the achievement of the MOU-3 and MOU-4 drilling programmes has been immensely frustrating for Directors, Management and shareholders alike. Planning for rigless testing has been impacted by several amendments to the Initial Period of the Guercif Petroleum Agreement, whilst trying to balance access to limited well services and equipment caused by global competition. Ours is a big operation for Morocco but not by global standards. It has to be patient and creative.
Comment: A strangely motivational update from PRD, which if nothing else reminds us that it has been an unduly long time since the company last did a fundraise.
Kazera Global (KZG), the AIM-quoted investment company, announced that it has entered into an agreement with Tectonic Gold PLC to purchase Tectonic’s 10% shareholdings in both Deep Blue Minerals (Pty) Ltd and Whale Head Minerals (Pty) Ltd, along with Tectonic’s economic interest in loans it has with WHM’s Black Economic Empowerment partners. KZG said it will always be grateful to Tectonic for having initially identified the opportunity that makes up its assets in South Africa. With Tectonic’s strategic focus now lying in other areas, it is incredibly fortunate to have the opportunity to increase its stakes in both Deep Blue Minerals and Whale Head Minerals at a time when both projects are expected, very shortly, to be in production.
Braveheart Investment Group (BRH), announces an update on recent purchases of shares by Braveheart in one of its portfolio companies, Image Scan Holdings Plc. Between 31 March 2024 and 2 August 2024, the Company has purchased a total of 5,500,000 ordinary shares in Image Scan at an average price of 1.74 pence per share for a total cash consideration of £95,550. Following these purchases, Braveheart now holds 8.45% per cent. of the issued share capital of Image Scan.
Comment: BRH’s investment in IGE may have merit, but it does seem just a little strange that a fellow small cap company is the best opportunity it can currently find.
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