Tirupati Graphite (TGR), the specialist flake graphite company, announced its Interim Results for the six months ended 30 September 2023. Production increased by 160% to 4,508 tons (H1FY23: 1,731 tons). Gross operating profits increased by 106% YoY to £780,328 despite enlarged workforce and establishment costs for enlarged capacity. TGR said it feels proud of its achievements in the period under reporting. In spite of very tight working capital conditions, it is a testament to the inherent strengths of the Company and the team’s expertise in graphite operations, that it continued its ramp up to achieve significant year on year increases in production and sales. As previously announced, it is exploring a variety of funding options that will enable it to accelerate the production ramp-up and growth through 2024 and onwards, having laid a strong foundation to build a leadership position in this critical material.
Comment: TGR has historically had to tick a lot of boxes to get itself in a position where it is now, heading towards full production. It is a shame that the market has given the company no forward looking sizzle in terms of the share price, especially given the recent very positive China supply news.
Bens Creek Group (BEN), the owner of a metallurgical coal mine in North America supplying the steel industry, is pleased to announce its interim results for the six month period. The Group produced 204,998 (six months to 30 September 2022: 99,928) tons of clean metallurgical coal during the period, a 105% increase. The company said it has now successfully completed the transition of the business and are moving towards full production. Its average sales price in the period being only $118/ton against $166/ton for the comparable period in 2022, a difference of $50/ton which, if it had achieved it in the period upon would have been expected to result in a small profit for the half.
Comment: Most casual observers of BEN will be surprised that the company has been producing as much as it has, and is moving towards full production. It is a shame that to date the company has been hamstrung by commodities prices.
Tap Global Group Plc (AQSE: TAP), the cryptocurrency app, announced its results for the year ended 30 June 2023. Group trading payment volume was £181.6m (2022: £0). Tap’s full year (1 July 2022 to 30 June 2023) revenue was £2.5m (FY22: £0.9m), an increase of 176%. Group adjusted EBITDA loss was £0.4m (2022: £0.3m). Cash position increased to £2.3 million (FY22: £1.1 million). TAP said the Group’s financial status is in robust health with revenues for the year of £2.0 million, a cost base that is under control, and a healthy cash balance at year-end of £2.3 million. The Group’s adjusted EBITDA for the year was a loss of £0.4m, which was expected as the Group executes its growth strategy.
Comment: If the share price of TAP had echoed that of miner Argo Blockchain in recent weeks, which arguably it should have off the back of the recent rise of crypto, it would have tripled towards 5p. Indeed, especially noting the strong cash position at the company, it should already be there given going EBITDA positive seems imminent.
Gunsynd (GUN) announced that it has invested approximately CAD$350,000 (c. £200,000) into 1911 Gold Corporation, a junior gold development and exploration company located in Manitoba, Canada. Gunsynd said it was very pleased to be investing alongside well renowned gold investor Eric Sprott who corner stoned the CAD $3.9m fundraise. This only strengthens its confidence of the potential upside and value creation amongst a backdrop of record Gold prices.
Comment: It will be interesting to see whether getting on the bandwagon of what looks to be a major gold price breakout through $2,000 will crystallize the kind of investment win for GUN which will finally move the dial as far as the share price is concerned. The omens currently seem positive.
Oberon Investments Group plc (AQSE: OBE), the boutique investment management group, announces its unaudited results for the six months ended 30 September 2023. Group Revenue increased 28% to £3.4m (2022: £2.6m). OBE said Group revenue growth has been achieved despite continued difficult conditions in the corporate broking market and a decline in revenues of 33% in the Oberon Capital division. The Oberon brand is growing in the market, which should continue to help attract high quality teams and professionals. Furthermore, the ongoing consolidation in the industry leaves Oberon as one of the few true boutiques who are able to offer clients and investment managers a bespoke and personalized service.
Comment: One could say that to increase revenue by 28% in current stock market conditions, and the intense bear market in the small cap area, is nothing short of miraculous. The explanation at OBE may be its persistent hiring of the great and good of the City, a head count it expects to take the company forward. Ideally, it is the fund management area which leads.
VSA Capital Group plc (AQSE: VSA), announced its interim results for the half year ending 30 September 2023. Turnover of £1,051,000, EBITDA of (£1,542,000). Cash position £546,000.
Comment: Given stock market conditions, one would almost say that the trading performance at VSA and the cash position is something of a result. As the company has suggested, solving Lush without the cost of lawyers would appear to be the way to go.
Reabold Resources (RBD), the oil & gas investing company, an update with respect to the forthcoming general meeting was requisitioned by Pershing Nominees Limited on behalf of several beneficial shareholders. RBD said in the event that the resolutions in respect of the appointments of the Proposed Directors are passed and its Nominated Advisor Strand Hanson has not completed the required due diligence to its satisfaction, Strand Hanson has informed Reabold that it expects that it would be required to resign from its role as the Company’s Nominated Adviser with immediate effect. Should this be required, in accordance with AIM Rule 1, trading in the Company’s ordinary shares on AIM would be suspended following the closing of the General Meeting on Wednesday 10 January 2024. Ideally, this situation does not go to the wire.
Comment: While for those not involved in this situation the January 10 requisition represents a time to get out the popcorn, we are reminded that historically such events are those where there has been a serious failure to communicate between the rival parties involved. So far we have seen RBD management double down on its record, while questioning the merit of the requisitioners. An explanation as to the quality of its investments, and why the shares apparently remain so undervalued might be the best way forward to appease shareholders.
Great Southern Copper (GSCU), the company focused on copper-gold and lithium exploration in Chile, announced its results for the six months ended 30 September 2023. It has been very positive first half of the year as we continue to make strong progress across its prospects and in particular Especularita where its exploration campaigns have delivered encouraging results and helped to delineate promising prospects for further exploration.
Comment: GSCU remains one of the dark horses in terms of the London listed explorers, something which remains as puzzling as it is frustrating. Nevertheless, the quality of its assets such as Especularita should soon start to be better appreciated.
Fulcrum Metals (FMET), a company focused on mineral exploration and development in Canada, announced its unaudited consolidated interim results for the six month period ended 30 September 2023. FMET said during the reporting period Fulcrum has moved at speed to discover and scale our exploration assets across Canada, in particular in Ontario, with extensive exploration programmes conducted at Big Bear and Jackfish. There have been some notable results including rock samples of up to 45g/t Au and the identification of multiple structural targets in the Schreiber-Hemlo area.
Comment: The name of the game as far as market newbie FMET in recent months has been to differentiate itself from other of the myriad explorers in the junior mining space in terms of the quality of its targets, and the speed at which it can monetize them.
Asiamet Resources (ARS) announced a further update in relation to the Company’s wholly owned, feasibility stage, BKM copper project located in Central Kalimantan, Indonesia. ARS said it has had initial engagement with a prominent Indonesian bank to introduce Asiamet, PT KSK and the BKM Copper project and feedback has been positive. With very few energy transition metals projects at the financing stage, the Board expects that the BKM Copper Project will be strongly supported by Indonesian banks.
Comment: It has certainly been a long journey for shareholders of ARS, but one would expect the big financing news to be delivered for 2024, and a run up in the shares on speculation of its arrival.
Chill Brands Group (CHLL), the international consumer packaged goods company, announced its interim results for the six months ending 30 September 2023. CHLL said it will see in the New Year with more than 2,365 committed retail stores, sustained multi-channel growth and substantial purchase orders that will result in material income for the Company as they are fulfilled during Q1.
Comment: Given the company’s significant distribution network, there can be little doubt that it now has the footprint to deliver the tsunami of sales its fans are waiting on. Presumably, we shall have the big reveal in this respect during Q1 2024.
Corcel (CRCL) provided an update on the drilling results of the Tobias-14 well in the onshore Block KON-11, in Angola where it has a 20% working interest (18% net). CRCL said the encouraging results of the TO-14 well constitute a significant milestone toward development of an EPS and providing line of sight to near-term revenue generation for Corcel.
Comment: Just for a change, the market, at least in terms of the share price, has been forward looking in terms of the rally we have seen on late which is clear anticipating revenue generation sooner rather than later.