Oracle Power (ORCP), an international project developer, updated shareholders on the farm-in by Riversgold Ltd (ASX:RGL) on the Northern Zone Intrusive Hosted Gold Project, which is located 25km east of Kalgoorlie in Western Australia. ORCP said Riversgold continues to push exploration efforts forward at Northern Zone with the target of declaring a maiden MRE this year. The impressive size and scale of Northern Zone has been demonstrated through the previously declared Exploration Target of 2.5Moz-4.8Moz of gold, and it is eager to see Riversgold begin to prove this up whilst retaining its 20% interest in the Project.
Comment: It is helpful that ORCP continues to remind the market that it has indeed proved its international project developer strategy in Northern Zone, with the Riversgold farm-in funding this particular project well.
Dekel Agri-Vision (DKL), the West African agriculture company, provided its unaudited full year production update for the year ending 31 December 2023 for the Ayenouan palm oil project in Côte d’Ivoire and the cashew processing plant at Tiebissou, Côte d’Ivoire. DKL said ten consecutive months of stronger like for like CPO production resulted in a 51.7% increase in 2023 CPO production compared to last year which was an excellent outcome. FY2023 has been one of the best annual financial performances delivered by the Palm Oil operation.
Comment: It remains frustrating for DKL shareholders in the sense that the past year and before has witnessed the company delivering on its strategy, especially with regard to CPO production. For DKL shares to be anywhere near their lows appears to be something of an aberration.
Ethernity Networks (ENET), a supplier of networking processing semiconductor technology for virtualised networking appliances, announces an update on the Company’s ongoing temporary suspension of proceedings process. According to the Company’s financial registers, the total creditor balance subject to the Settlement Proposal is US$1.6 million.
Comment: October and November witnessed brief, sharp spikes in the ENET share price. One would imagine that the latest news may lead to a repeat of such price action.
Rainbow Rare Earths (RBW) announced the progression of the Phalaborwa pilot plant process, with the rare earth oxide separation process now underway at the facilities of Rainbow’s technical partner K-Technologies, Inc. in Florida. RBW said whilst it has experienced some delays from the original timetable due firstly to the further beneficiation of the mixed rare earth sulphate to produce a cerium-depleted mixed rare earth carbonate as the optimal feedstock for the K-Tech CIX and CIC circuits, plus two key mechanical issues at K-Tech, which took longer to resolve than anticipated due to the Christmas period, this has in no way affected the integrity of the process flowsheet which is progressing as planned.
Comment: It is perhaps typical of current stock market conditions that shares of RBW have come off the boil since the announcement of a proposed US$50 million TechMet investment in Phalaborwa to be funded by the U.S. International Development Finance Corporation.
UK Oil & Gas (UKOG) announced that following the successful completion of repair and strengthening of the access track and well pad during recent good weather, it was advised by operator AME that perforating operations should commence towards the end of next week or by the following Monday, 22 January 2024.
Comment: It is perhaps a shame that now that UKOG is more like a normal oil and gas group, the buzz around the stock has subsided along with the share price. Perhaps 2024 will see the group improve the current state of affairs?
Cellular Goods (CBX), a company specializing in developing next-generation skincare and wellness products, announced that the Company is to change its name to Cel AI PLC. The Company will also change its ticker symbol to “CLAI” to reflect the change in name. CBX said the change of name announced today further solidifies its strategic shift in its operations to efficiency in all aspects of the business, including streamlining all operations and focusing on enterprise value increasing through an active and engaged community built on cutting edge AI technology. The high end beauty buying experience is ripe for disruption and it is very clear that its prospects and customers want it to provide them with a full suite of product recommendations and beauty ideas. It firmly believes that Artificial Intelligence can play a major role in scaling this recommendation engine.
Comment: Given the massive AI boost to the USA market last year, the UK has a long way to go in catching up. Initiatives such as Cel AI are the right way of getting on the bandwagon, something we have already seen from the recent share price rise.
Cyancannode (CYAN) as we correctly anticipated have won a further order from India for one million Omnimesh Modules, together with Advanced Metering Infrastructure and maintenance which build Smart meter networks. The installation will be completed in just over 2 years with a 93-month Support and Maintenance Contract. Approximately 60% of the contract will be paid during the installation phase. This order increases the Indian order book to 6.3 million units, with 3.9 million modules in process. The interims to September 2023, reported a reduced operating loss of £2.2m with turnover of £5.8m and gross margins at 33%. Prospects are clearly improving for the March 2024 year-end and beyond.
Comment: Momentum is building so the shares at 10.3p, just over the last placing price, and a mkt Cap of £33m have room to ‘power’ on with further orders.
AQRU Plc (AQUIS: AQRU), announced that the Company is to change its name to Supernova Digital Assets Plc. The change aligns the Company’s name with its strategic focus to become a value provider for the Solana ecosystem. The Board of Directors believe that the Supernova Digital Assets name better reflects the Company’s desire to build an active and engaged community of investors that believe in the opportunity of the Solana ecosystem and want public market exposure to this growing market. The Company has an unaudited net asset value of £3.6million (0.297p per share) as at 10 January 2024, including £2.157 million (0.166p per share) in liquid crypto. The current share bid price is now 66% below the Company’s net asset value.
Comment: We have another company looking to rebrand and revamp itself to something which will stimulate investors. That said, the massive NAV discount should be enough of a catalyst for investment to most.
MyHealthChecked (MHC), the consumer home-testing healthcare company, provided an update on trading for the year ended 31 December 2023. MyHealthChecked has traded profitably during the second half of the year, whilst continuing to invest in the development of the new product range. The Board is expecting EBITDA for the full year to be around breakeven after adjusting for exceptional, non-recurring costs of c£0.1m (H1: £0.3m loss; FY 2022: £2.3m profit). MHC said its performance in delivering COVID tests in 2023 has been strong. Whilst revenue has, as expected, reduced compared to the prior year, the seasonality of respiratory infections drove an uplift in demand during the second half, and it expects that COVID testing will remain an ongoing annual requirement for customers.
Comment: MHC has clearly found a decent post COVID operating level, especially given the current rather rough flu season. One would expect a further recovery for the shares in coming weeks towards the 20p plus zone seen in mid 2023.
Castillo Copper (CCZ), a base metal explorer primarily, announced that it has agreed the sale of two of its 100% owned Exploration Licences, EL 8572 and EL 8599, at the Broken Hill Project to Rimfire Pacific Mining LTD. CCZ said it is streamlining its portfolio of high-quality assets and focusing on those it deems as core, which the Board believes will allow Castillo to most optimally generate value for shareholders. This agreement will allow Castillo to focus on the development of portfolio of assets, while still retaining interest in the Broken Hill Project.
Comment: CCZ shares have been something of a one way bet in the recent past, with the key here being that the market will appreciate its attempt to streamline its finances.
Abingdon Health (ABDX), an international lateral flow contract research (CRO) and contract development and manufacturing organisation (CDMO), provided an update to its shareholder concert parties. On 30 August 2023, the Company announced that it had agreed with the Panel that the concert party that was put in place upon the Company’s IPO on 15 December 2020 would be split in to three separate concert parties. ABDX said it has now agreed with the Panel on Takeovers and Mergers that Brett Pollard should be removed from the Founder Group concert party.
Comment: This is the kind of red tape / Kafkaesque fluff that has progressively destroyed the stock market, ensuring that as few private companies as possible want to get listed these days.
Tekcapital (TEK), the UK intellectual property investment group announces that Innovative Eyewear, Inc. the developer of ChatGPT enabled smart eyewear under the Lucyd®, Nautica®, Eddie Bauer® and Reebok® brands, announce it has received Notices of Allowance from the United States Patent and Trademark in fourteen design patent applications. Tekcapital currently owns approximately 40% of Innovative Eyewear, Inc.
Comment: Fourteen design patent applications are indeed nothing to be sniffed at, although it remains to be seen whether this alone is enough to revive TEK shares after their recent probe below 10p.
XLMedia (XLM), a global digital media group, announced a two-year extension with long-term partner, Mile High Sports. Mile High Sports is a Colorado-based independent publisher primarily focused on professional sports with high quality multi-media content and a highly engaged sports betting audience. XLM said it continues to build our successful Media Partnership Business. The extension with Mile High Sports is further proof of the Business’ ability to partner with valued publishers.
Comment: Although perhaps not in the most fashionable of stock market spaces, there are the first signs of a turnaround for XLM shares, boosted by the intriguingly named Mile High Sports deal.
Trinity Exploration & Production (TRIN), the independent E&P company, updated on operations for the three-month period ended 31 December 2023. TRIN said it continued to progress its work at the Jacobin well. Its ongoing data collection work is important for it to develop its understanding of the area and its potential for the Buenos Ayres licence. It also continued to invest in its wider asset base to offset natural decline and underpin its strong cash generation potential. It welcomed the Government’s fiscal reforms to the SPT regime in Trinidad and Tobago which should have a significant impact on its 2024 cashflow and facilitate strengthening of the balance sheet.
Comment: Judging by the recent share price decline / sentiment, there will need to be a significant improvement in the balance sheet at TRIN before investors return in a meaningful way.
SAE (SAE) announced that the next Battery Energy Storage System project at the Uskmouth site has been granted planning consent with conditions by Newport City Council. This is another significant milestone in the business’s plan to develop 1GW of BESS at the Uskmouth Sustainable Energy Park, as set out in the business update provided on 5 December 2023. The 120MW project is being developed alongside Enso Green Holdings Limited and will be built at the site of the power station’s cooling towers. SAE has commissioned and mobilised the demolition works on the cooling towers to prepare the site for construction.
Comment: SAE shares have already had a decent run ahead of today’s RNS. One would expect this re-rate to continue in the wake of BESS progress.
Shanta Gold (SHG), the East Africa-focused gold producer, provided an exploration update at the New Luika Gold Mine in Southwestern Tanzania relating to drilling conducted in 2023. SHG said commencement of drilling at the Jem deposit at Singida in September 2023 marked the resumption of exploration drilling at the mine after a few years. A drilling update will be provided in due course.
Comment: Shares of Shanta have rebounded since the autumn, helped along by new highs for the gold price. A decent drilling update could take the stock onto three year highs towards 20p.
Marks and Spencer Gp (MKS) announced its Christmas 2023/2024 Trading, with total sales up 7.2%. MKS said its strategy to reshape M&S for growth has enabled sustained sales momentum across Food and Clothing & Home over the Christmas period. Thank you to its customers for shopping with us and to our colleagues who worked incredibly hard.
Comment: Perennially a bid target, the shares have tripled from their pandemic lows, ironically making them rather less attractive to any alleged would be bidder. Indeed, if anything MKS should be bidding for others.