Jubilee Metals (JLP) announced its intention to conduct a conditional placing to raise gross proceeds of approximately £10 million at a price of 5.5 pence per share. The funds will be used at Zambian Copper operations, in order to pay the initial payment of US$1.75 million, due under the agreement for the acquisition of the copper waste rock dump announced on 12 December 2023 detailed above and progress resource and process design (a total of c.US$4.5m). Expand the sulphide recovery circuits at the Company’s Sable Refinery to accommodate increased sulphide concentrate production from newly acquired projects (c.US$5.7m). Progress the project development phase of the Mufulira slag project, with early-stage bulk trial and processing (c.US$2.5m).
Comment: To squeeze £10m out of the market ahead of Christmas will be a decent achievement. Reminding investors of the scale and quality of what JLP is sitting on, will be the way of enabling this.
Atlantic Lithium (ALL), the African-focused lithium exploration and development company, announced it has successfully completed its institutional placement raising A$8.0 million (equivalent to approximately £4.2 million) at a price of A$0.44 (23.35 pence) per New Share. ALL said as it awaits the completion and the receipt of the funds from the Minerals Income Investment Fund’s investment, as well as the completion of the off-take process that is currently underway, the proceeds put the Company in a strong position to continue advancing the Ewoyaa Lithium Project at pace.
Comment: It has certainly been a busy period for ALL over the course of the autumn, especially in the wake of the rejected offer for the company. Perhaps now with the raise out of the way, we can appreciate a little more as far as why the offer may have been made.
XLMedia (XLM) Trading update for the year-end December 2023 expects revenues at $51m, while adjusted EBITDA to be $13m. Compared to $71.8m and $2.4m. The once acquisitive XLM, are a digital media company creating content to engage audiences with relevant advertisers. Its brands have an emphasis on Sports and Gaming which was benefiting US regulation changes. The startegy is to JV, with media operators like the agreement with Newsweek with cir.50m users. As part of a strategic clear-out, it sold three European Casino assets in July for 4.7 times multiple of revenue but there are no further disposables on the cards. The net cash in June was $7.4m with usually strong cashflow and the last funding was for £24m at 40p in 2020.
Comment: The 7.36p shares are already near the years low of 6.56p with a £19m mkt cap. A US recovery should eventually stimulate a return to growth.
Zephyr Energy (ZPHR), the Rocky Mountain oil and gas company, reported that initial flow rates from the six wells operated by Slawson Exploration Company have exceeded the Company’s expectations. ZPHR said it has grounds for considerable optimism as it looks towards 2024, which is set to be extremely active and characterised by substantial news flow. In particular, it continues to prepare for the exciting State 36-2R well redrill, for which it believes substantially all costs will be covered through insurance, and after which it hopes to utilise the same rig for a second well. In addition to further delineating the extent of the Paradox project with the drill bit, it also looks forward to delivering first regular cash flows from the Paradox project as it progresses from exploration to production in the area.
Comment: ZPHR will need the kind of newsflow which is friendly to the share price in 2024, given the way that despite a busy 2023, the message regarding what has been achieved is yet to hit home.
Upland Resources (UPL) announced that, following a successful week spent in Sarawak, progressing and finalising the PSC framework, and further to the announcement made on 4th December 2023, the company has now signed a specific Letter of Intent (LOI) for the provision of a new generation drilling rig with a distinguished and renowned partner Huisman Geo. UPL said it has made tangible progress and laid strong foundations towards its intended drill campaign. It looks forward to increased market engagement as we continue to scale up operations on Block SK334 in Sarawak.
Comment: UPL has regrouped rather better than the cynics might have expected, or wanted, since the brief M&A induced share price spike. Indeed, it would appear that the company is forging ahead after that blip.
Arkle Resources (ARK) announced that it has been awarded two exploration licences in the Makgadikgadi Salt Pans in North Eastern Botswana. The licences, PL 075/2023 and PL 0148/2023, cover 312 and 525 sq kilometres respectively in size. ARK said it was really pleased to have been awarded these two large licences in the Makgadikgadi Salt Pans. It now has three lithium exploration projects, one in Ireland, one in Zimbabwe, both hard rock, and now in Botswana which is a lithium brines project. Initial work will focus on analysis of the very limited exploration data, followed by prospecting to identify targets for drilling.
Comment: Shares of ARK have been a volatile play in recent months, with the hope here now that the latest license news will resolve the price action back to the higher levels.
Creo Medical Group (CREO), the medical device company focused on the emerging field of surgical endoscopy, announced that its latest device, Speedboat® UltraSlim, has now been successfully used in the USA. CREO said knowing the potential that having a device that is compatible with all major endoscopes brings, it is energised to get the device into the hands of clinicans to allow them to treat their patients, for more indications and improve lives. With significant demand for this product already indicated from existing and potential Speedboat users, it will continue its early market release ahead of the full market launch in early 2024.
Comment: Not that there has been much competition, CREO has been one of the brighter lights as far as UK listed biotech plays, with the shares up 35% YTD. The sizzle here for next year is clearly full market launch and hopes for the USA.