Woodbois (WBI), a company in the international timber industry, announced the exercise of 200 million warrants at 1p per share, generating £2.0 million for the Company. The proceeds of the warrant exercise will be used to scale up production and help realise efficiencies. The Company has also entered into a term sheet for a $5m facility. WBI said the conversion of warrants at a premium of 41% to the current share price adds £2.0m to its cash resources and shows great external belief in the future prospects of the Company. It allows it to continue the drive to profitability through enhancing production volumes and quality, whilst also further streamlining its costs and progressing the important carbon credit business plan.
Comment: WBI has taken a while to get all cashed up again, so much so that there is now little excuse for the company not to be able to deliver on its milestones.
Greatland Gold (GGP) advised that the WA Government Exploration Incentive Scheme (EIS) co-funded drilling program has been successfully completed and all assays returned at the Meadows gold prospect within the Company’s 100% owned Ernest Giles project. GGP said Ernest Giles is an exciting 100% owned project that sits outside its strong foothold in the Paterson region, in an underexplored Archean greenstone belt that hosts many Tier 1 deposits. These initial results are encouraging and confirm the prospectivity of the project. The results will inform further exploration work, including a more extensive drilling program this year.
Comment: It remains disappointing that shares of GGP have not been able to sustain their gold price inspired rally through 10p. The company will apparently have to drill its heart out this year to revive the momentum seen in the autumn.
Zephyr Energy (ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, provided an update on its operated project in the Paradox Basin, Utah and on its non-operated project in the Williston Basin, North Dakota. ZPHR said its team continues its intensive and robust planning process for the State 36-2R well and once the sundry amendment to the drilling programme is approved, it will seek to expedite operations at site to commence drilling operations as soon as possible.
Comment: Shares of ZPHR continue to trundle at levels last seen in 2021, something which underlines the need for a fresh driver to the stock, such as fresh drilling sooner rather than later.
Touchstone Exploration (TXP) announced an operational update, highlighted by the drilling results of the Cascadura-2 delineation well. TXP said the encouraging Cascadura-2 delineation well drilling results represent a great start to 2024. Cascadura-2 has proved up the concept of highly productive sands extending significantly to the east of our initial Cascadura discovery. It estimates that the well was drilled for under $6 million on a gross basis, which further enhances the economics of this prolific hydrocarbon fairway. With this new data point it can design a multi year drilling program to fully develop the structure. This well has not defined the eastern most edge of the structure, which warrants further delineation through future drilling.
Comment: TXP has been one of the more frustrating plays in its space, especially after recently breaking the floor of its 50p – 90p trading range. At least today’s news gives the bulls a reason to return to the stock at the low levels on renewed prospects for Cascadura-2.
Baron Oil (BOIL) confirmed that the Farm-Up Agreement between Baron’s wholly owned subsidiary SundaGas Banda Unipessoal, Lda. and TIMOR GAP Chuditch Unipessoal Lda in relation to the TL-SO-19-16 Production Sharing Contract, offshore Democratic Republic of Timor-Leste, has completed. As part of the Farm-Up arrangements, TIMOR GAP will make a cash payment to SundaGas of c.US$1 million to cover back costs within 30 days.
Comment: While all the paperwork may now be done and dusted, it is a reflection of the market sentiment at the moment that shares of BOIL are already around half the price they peaked at after the farm-up arrangement was first announced.
Seeing Machines (SEE), the computer vision technology company provided a trading update for the six months to 31 December 2023. SEE reported underlying revenue growth rate of 28%, with 116% increase YoY in cars on road which now exceeds 1.5 million. SEE said it was seeing consistent 100%+ year-on-year growth in the number of vehicles with its technology installed – now at over 1.5 million cars.
Comment: After a rather longer gestation period than many would have expected, it looks like the world of AI has blossomed perfectly for SEE. That said, to date none of the zeitgeist good fortune has feed through to the share price yet.
Jubilee (JLP), a diversified leader in metals processing with operations in Africa, provided an update on progress at its copper operations in Zambia. JLP said it was very pleased to announce significant progress across its copper portfolio in Zambia including the discovery of a new large scale one kilometre long copper anomaly at ITS Munkoyo Project. It continues to expand its access to copper resources overlooked by the industry, as a platform from which to expand its copper processing operations.
Comment: JLP shares have suffered perhaps as much as from the company’s straight talking regarding its operational issues, than the longer term prospects for the group, especially as far as exposure to copper is concerned.
Revolution Beauty (REVB), the multi-channel mass beauty innovator, will today hold a Capital Markets Event for institutional investors and sell-side analysts. The Group is also providing a brief trading update for the 2024 financial year. REVB said that by focusing on our Revolution Masterbrand, building smarter operations, maintaining financial discipline and energising it teams, it believes it will deliver long-term profitable growth. It is confident it can achieve it ambition to deliver annual retail brand sales of £1 billion by 2030, establishing Revolution Beauty as a top five mass beauty brand globally.
Comment: More keen on world domination than a James Bond villain, having sorted out its dispute a few days, it will be interesting to see whether the shares of REVB can finally get through and hold above the pesky 30p zone.
Eco Buildings Group (ECOB), a modular housing company, announced that it has raised £827,000 via a subscription by several supportive existing shareholders. ECOB said the proceeds will be used to accelerate production of modular housing and help satisfy the existing €114M order book over 3 years. The Company anticipates that the first revenue is to be received in the current quarter (Q1 2024) and ongoing thereafter. In addition, the Company will use funds to support growth in new geographic areas.
Comment: This latest fundraise, backed by current and outgoing management, can be seen as the last piece of the jigsaw as far as getting ECOB into position with regarding to the rollout of its chunky order book. This event should mark the floor in the share price.
XLMedia (XLM) The Trading Update for the year-end December 2023 expects revenue to decline to be c.$50m and FY 23 Adjusted EBITDA of c.$12m.Compared to last year’s $71.8m and $18.2m, the reduction is explained by a spike in revenues in early 2022 driven by the launch of online sports betting in New York. The once acquisitive XLM, after selling its European casinos is transitioning into 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. There is the launch of online sport betting in the state of North Carolina in mid-March which is expected to be a material market for sports betting. Its net cash declined to $4.8m after deferred acquisition payments etc and further funding would accelerate its organic growth strategy.
Comment: The 7.5p with an £18m mkt cap, the shares are just off its low, and the US should eventually stimulate a return to growth.
Golden Metal Resources (GMET), a strategic development and mineral exploration company focused on Nevada, USA, announced an update on the 100% owned, flagship, Pilot Mountain project. GMET said that from a technical review of historical drilling logs and metallurgical test reports it is demonstrated that the industrial mineral garnet comprises approximately 40% of the mineralised intervals across the known deposit areas.
Comment: GMET remains ahead of the junior explorers pack, having convinced the market especially via the strategic importance Pilot Mountain, something which has been underlined once more today.
Xtract Resources (XTR) announced an update on progress in Zambia with the copper exploration joint venture agreement JV with Cooperlemon Consultancy Limited first announced on 24 August 2023, and also the overall Company copper exploration strategy in Zambia. XTR said Zambia as a nation has set ambitious targets for copper production to underpin its economic progress and Xtract intends to become a part of that story initially by being the only junior company operating its own Joint Venture licences on a self-financing and independent basis.
Comment: Shares of XTR remain near the 1p zone, despite two strong RNS updates from the company, with today’s release reminding the market that the copper story at the company remains as strong as ever.
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