Skip to main content

Your stock market edge

African Pioneer (AFP) the exploration and resource development company, updated shareholders in relation to the First Quantum Minerals Limited option agreement with AFP’s 80% owned subsidiary African Pioneer Zambia Ltd announced on 22 January 2022. AFP said it was very pleased to be advised by First Quantum that they have exercised their Option over the remaining two licences so that they have now exercised their option over all four licences the subject of the Option Agreement. The initial period under the Option Agreement has been extremely successful for both First Quantum and AFP with the Western Foreland and Kamoa-style mineralising environment being established as well as near surface mineralisation in the fold- and thrust domain further to the east on some of its licences.

Comment: AFP shares remain steadfastly detached in terms of their current value, despite the kind of fundamental progress being announced today. At the very least, rubbing shoulders with a giant such as First Quantum deserves rather more credit than have been offered to date.

Audioboom (BOOM), the global podcast company, announced it achieved record audience reach in January 2024 through the continued growth of its podcast network. In January, podcasts on the Audioboom Creator Network were downloaded by more than 38.6 million unique listeners worldwide, a new monthly record and more than 9% up on Q4 2023’s monthly average (34.4 million). BOOM said listeners continue to flock to podcasting and it is doing an incredible job of growing the Audioboom Creator Network audience faster than its competitors. It is developing true global audience scale – key to providing our brand partners with powerful, targeted advertising options to capture the full value of podcasting for its creators.

Comment: If only BOOM had as many share buyers flocking to it as podcast listeners. Or perhaps record profits? Nevertheless, it does appear that the company is finally getting its act together on the fundamental front, even though the market cap is still nothing to crow about.

Avacta Group (AVCT), a life sciences company, announced that as part of its HMRC Approved Share Incentive Plan Award Scheme, ordinary shares of 10p each in the Company up to a value of £3,000 per employee will be issued at the prevailing middle market price at the close of business on 14 February 2024 to all eligible employees. These shares awarded will form part of the employee’s remuneration package.

Comment: It remains something of a head scratcher as to why AVCT shares continue to oscillate in a 100p – 150p range. Today’s announcement perhaps will remind some that under 100p AVCT may be in the value zone.

Plexus Holdings (POS), the AIM quoted oil and gas engineering services business, announced it has won a contract valued in excess of £1 million to provide specialised equipment and services for multiple plug and abandonment activities in the North Sea. POS said the number of wells that must be permanently plugged and abandoned is fast growing, particularly in mature offshore locations such as the North Sea, where the OEUK indicated that decommissioning would account for 25% of oil and gas expenditure in 2023, up from 12% in 2022, and encouragingly it believes this trend will continue.

Comment: Having peaked over 25p in September, we have seen a rather extended share price pullback since then. However, today’s news should remind the market that a bounce is now overdue for the shares, at least enough to get them back on the right side of 20p.

Fiske (FKE) announced its interim results for the six months ended 31 December 2023. FKE said it was reporting a marked increase in its revenues and operating profit for the six-month period to 31 December 2023 when compared to the previous half-year period to 31 December 2022.  Revenues increased by 32% to £3.46m (2022: £2.60m) whilst operating profit was £193k compared to a loss of £158k for the six-month period to 31 December 2022.

Comment: Even in current relatively dark stock market days, investors still love a situation where a company is delivering a turnaround from red to black. We should see FKE’s share price respond in kind, and not just as a one day wonder.

Bushveld Minerals (BMN), the primary vanadium producer, announced that today it has received an additional ZAR76 million (~US$4 million) from Southern Point Resources which has been provided on an interest free basis and will be repaid once SPR provides Bushveld with the entire US$12.5 million, pursuant to the SPR subscription agreement. The Company has now received a total of ZAR116 million (~US$6 million) from SPR as an interest free loan. SPR has communicated that the full US$12.5 million will be paid no later than 28 February 2024.

Comment: SPR seems to be the kind of financial sugar daddy that ever small cap would like to have. Presumably, all of this cash will finally help BMN shares elevate from their recent lows.

Hemogenyx Pharmaceuticals (HEMO), the clinical stage biopharmaceutical group, announced that it has demonstrated in vivo that its proprietary Chimeric Bait Receptor can be delivered into the brain via programmed microglial cells for the potential treatment of brain cancers and certain neurodegenerative diseases. HEMO this major breakthrough in the method of delivery of its CBR into the brain is a unique tool that may allow it to successfully tackle some of the most difficult and often incurable human diseases. As it broadens the scope of use for its CBR platform, it is eager to continue its development.

Comment: We appear to have a significant RNS from HEMO almost every other day, something which underlines the way that after years of playing the waiting game, shareholders seem to be being rewarded all at once. Ideally, the share price continues to re-rate in sympathy.

Golden Metal Resources (GMET), a mineral exploration company focused on tungsten, lithium, gold, copper and silver within Nevada, USA, announced an update from its Kibby North and Kibby South lithium brine properties located in mining friendly Nevada, GMET said today’s announcement follows a further analysis of all available datasets by our technical team who were able to conclude that the main target conductor within the Kibby Basin has never been adequately drill tested. Considering the relative depths of the very strong lithium-in-clay and lithium-in-brine mineralisation encountered by nearby drillhole KM22-02, it believes the findings presented today point to the likelihood of a significant lithium brine target at a deeper depth within the basin, on ground 100% owned by Golden Metal.

Comment: GMET remains the most appreciated of the recent exploration IPOs, and today’s RNS underlines why. The company is firing on multiple assets in multiple metals, and all in a significant way.