Ananda Developments (AQUIS: ANA), the company whose ambition is to be a leading provider of cannabinoid-based medicines, announced its unaudited management statements for the quarter ended 31 January 2024. ANA said whilst it continues to believe that DJT shows incredible promise as a business unit, until the market demand increases and the regulatory framework becomes less opaque the Directors believe that MRX is the Company’s core value driver and the Company will be applying most of its efforts and resources in this area in the near term.
Comment: A growing unwinding of the taboo against medical cannabis has been helped by adding high profile medics to the ANA team. MRX is indeed the main driver behind ANA, as well as the fact that the company has managed cash considerations rather better than other contemporaries in the space. The key here is the speed to market, where ANA looks to be ahead of the pack.
i3 Energy (I3E), an independent oil and gas company, announced the following Q4 2023 operational and financial update. 2023 annual average production of 20,711 barrels of oil equivalent per day, which represents record annual corporate production and is at the high end of the Company’s 2023 guidance range of 20,000 – 21,000 boepd. I3E said the fourth quarter of 2023 rounded off a highly successful annual capital programme for the Company, with a dozen wells drilled. It was very pleased that this programme, combined with its robust, low decline, asset base and a razor-sharp focus on operational efficiency, delivered very strong financial performance, and ensured that the company met its production and net operating income guidance for the year.
Comment: The stock market is still littered with small caps where there is a massive disconnect between what is going on operationally and the share price. But even within this context 9p a share looks miserly for I3E, especially as the company reminds us that its run rate is over 20,000 barrels a day.
Pensana (PRE) is the mine to magnets to machinery company for the electrification of motive power through EVs and Wind Turbines. It has announced most of the terms of its financing package for Longonjo mine in Anglo which is one of the world’s largest undeveloped rare earth mines, and one of only three with a JORC Reserve greater than 100,000 tonnes of NdPr which is used in magnets. The project finance debt facility is for up to $156m with participation of up to 50% between each of the lender participants to fund the Longonjo mine, flotation circuit and refinery over the next five to seven years. PRE is also in advanced discussions with the existing shareholder the Angola Sovereign Wealth Fund (FSDEA) to finalise the $80m equity component of the financing package. PRE is in advanced discussions with several parties for the offtake of the highly marketable, radionuclide-free mixed rare earth carbonate (MREC) and has recently received product approval from one of its potential customers.
Comment: PRE shares have appeared to be bubbling under for some weeks, and today’s announcement comes as less of a surprise that it might otherwise have. The company has needed a big breakthrough, as all juniors do, and it the term sheet today is just what the doctor ordered. At 30.5p with a Mkt cap of £86m there is set to be a sequence of value adding events as it moves nearer to becoming a $billion revenue mining operation. An interview with Paul Atherley, the Chairman will be released shortly where the process will be explained in more detail.
Jubilee (JLP), a diversified metals processor in Africa, with its expanding copper operations and its substantial contribution to global chrome concentrate production, has published its unaudited interim financial report for the six months ended 31 December 2023 (H1 FY2024). JLP said the extent of its strong production performance, supported by the continued expansion of its copper and chrome operations, was able to offset a significant reduction in PGM metal prices to deliver growth in both revenue and earnings. In Zambia, where it is investing and growing production, copper output improved by 46.5% despite the disruption caused by the implementation of the ongoing Roan concentrator front-end upgrade project.
Comment: JLP continues to get on with the job, as highlighted by the strong production performance delivered today. This should feed into the share price, once the company dials down the commentary on external influences such as PGM prices, which have not really impacted it materially.
Sovereign Metals (SVML) announce that as part of its ESG Strategy in developing its Kasiya Rutile-Graphite Project (Kasiya), it has commissioned a Conservation Farming Program (Program) in Malawi. SVML said this initiative forms part of Sovereign’s ESG Strategy to develop its tier one Kasiya Rutile-Graphite Project while simultaneously restoring and improving the livelihoods of local communities. The Program is being implemented by the Company’s experienced team on the ground, which previously ran a very successful initiative for First Quantum Minerals Limited’s Zambian operations where its conservation farming program has been effectively operating since 2010.
Comment: SVML reminds us today that Kasiya is a fully fledged world class project, and with all the bells and whistles such as an ESG Strategy that accompanies such an endeavour these days.
EnSilica (ENSI), a chip maker of mixed-signal ASICs, announced its unaudited results for the six months ended 30 November 2023. Revenue up 11.5% to £9.6 million (H1 FY23: £8.6 million). Adjusted EBITDA £0.51 million (H1 FY23: £0.66 million). ENSI said it was delighted with the continued operational progress delivered across the Period, particularly the quantity and quality of contract wins secured with companies across a range of sectors. This is testament to its expert team which is highly focused on driving the growth of the business and helping EnSilica deliver on its strategic ambitions.
Comment: It may be that there are some on this side of the pond looking for the UK’s Nvidia. Alas so far not much of the pixie dust from the AI chip makers has made it across the Atlantic, but perhaps it is early days.
Rainbow Rare Earths (RBW) announced that updated bulk density estimates for the Phalaborwa Resource has confirmed a ca. 16% increase in overall expected tonnages. This should lead to an increase in the project life from the current 14 years in the Preliminary Economic Assessment by over two years. RBW said the improvement in the Resource tonnage at Phalaborwa is extremely positive. While it awaits the assay results and the JORC compliant Resource classification upgrade, it is clear that the growth in tonnages will lead to an increase in the life of the project by over two years in due course.
Comment: RBW remains one of the leaders in the small cap / big project space of the London market. Today’s news that it is upgrading the asset is a shot in the arm for the company, and should filter through to the share price which is near recent support at 11p.
Made Tech (MTEC), a provider of digital, data, and technology services to the UK public sector, is announced its unaudited half year results for the six months ended 30 November 2023. Adjusted EBITDA up 180% to £1.4m (H1 FY23: £0.5m) with Adjusted EBITDA margin increasing significantly to 37.1% (H1 F23: 32.9%) on revenue down 7% at £19.1m (H1 FY23: £20.6m). MTEC said it is is focused on ensuring that it is fit and ready to capitalise on the structural growth opportunities that it sees in the UK public services market, with an efficient, right-sized cost base, experienced senior management, and an achievable strategic growth plan in place, whilst also maintaining our reputation for excellence amongst its clients.
Comment: It seems a tad unfair that MTEC is seeing its shares near it lows, when its seems to be riding the gravy train of the UK public services market, within our big state / high tax regime.
Ondo Insurtech (ONDO), a company in water leak prevention technology, announced that it has today entered an agreement with South West Water to reduce water leaks in the South West of England. ONDO said the immediate roll out of LeakBots within the South West is further evidence of the traction it is seeing from water companies who are keen to see the impact it can have on reducing leaks and water wastage within a customer’s home. A roll out with South West Water will allow it to help prevent unnecessary wastage through domestic leaks. It looks forward to working on the deployment of the initial 6,000 LeakBots and any future activity.
Lexington Gold (LEX), the gold exploration and development company with projects in South Africa and the USA, provided a further update on its 2023/24 drilling programme at the Bothaville Project located in the Witwatersrand Gold Basin, South Africa, which commenced in early December 2023. LEX said these latest developments from our Bothaville Project drilling campaign are highly encouraging. The completion of two diamond drill holes intersecting the A-Reef and showcasing signs of mineralisation, brings it closer to realising the potential of this project.
Comment: It should be the case that with gold now pivoting on the right size of $2,000, companies like LEX have a free ride to the upside for their share prices. Today’s RNS is a reminder that the company is firing on more than one cylinder in terms of its portfolio.
Tertiary Minerals (TYM) advised that a new JVA has been signed with local partner Mwashia Resources Ltd that will consolidate ownership of the Jacks, Mukai and Mushima North exploration licences into a new Zambian company to be 90% owned by Tertiary’s 96% owned subsidiary, Tertiary Minerals (Zambia) Limited and 10% by Mwashia. TYM said this JVA is a win-win for Tertiary and Mwashia and a further example of the excellent working relationship it has developed with its local partner which enabled the recent agreement with KoBold Metals on the exciting Konkola West Project. This new agreement simplifies its corporate structure in Zambia, brings forward its 90% ownership holding in all three of the Licences and creates a vehicle by which the partners can better consider joint venture approaches from third parties on the Licences.
Comment: We all like a win-win, especially as the issue for TYM is to develop the scale in its projects to take it to the next level. The JVA wit Mwashia could be the catalyst for such a process.
Tristel (TSTL), the manufacturer of infection prevention products utilising proprietary chlorine dioxide technology, announced its interim results for the six months to 31 December 2023, exceeding internal growth targets by delivering 20% revenue growth and 44% growth in pre-tax profits, and a doubling of its interim dividend. TSTL also announced that all reviews under the Medical Devices Regulation 2002 and the European Union Medical Device Regulation 2017/745 for approval of the Company’s TANK ClO₂ Sporicidal Disinfectant system have been successfully concluded and a positive recommendation for UKCA and MDR certification has been made.
Comment: Two excellent RNS’s released within a minute this morning. However, it would have been better to release them on different days, if only on the basis that it can be regarded as too much information.
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