10/07/2023

Tirupati Graphite (TGR), the specialist flake graphite and graphene company, provided its first update on the Mozambique Flake Graphite assets, post-acquisition. The company said the pilot trials that it has announced today will be crucial in enhancing the economics of development plans of the Montepuez project, including reducing costs and environmental impact as well as for business development purposes. As a new operator in the country, it is also committed to engaging meaningfully with local stakeholders and is beginning to have conversations with the community to understand their needs and expectations.

Comment: Shareholders of TGR should be boosted by today’s news in that it shows the company ready to fire up activity in Mozambique in a cost efficient way, all with the concept of being a significant world producer in graphite.

StreaksAI (STK), a UK-based provider of AI focused conversational gaming “Streaks Gaming” and the newly announced Social AI platform for influencers “Streaks Social” launching in Q3, formerly known as Streaks Gaming PLC, confirmed its change of name. The company said that the decision to change name to StreaksAI PLC reflects the Company’s commitment to leveraging cutting-edge technologies in the realm of Natural Language Processing (NLP) text generators like GPT-4 in its flagship products Streaks Gaming and Streaks Social.

Comment: StreaksAI stands out today in the impressive nature of the transformation of the company, so soon after the arrival of Threads. This both reminds us how important social media is,  and how with the combination of it with AI, StreaksAI has a unique offering. Adding into this is the way that to date UK investors have very few proxies to the AI boom we are currently witnessing in the USA.

Panthera Resources (PAT), with gold assets in West Africa and India, advised that the company and its joint venture partner, DFR Gold Inc has commenced a drilling programme on the Kalaka Project in Mali. The Drilling Programme will target extensions of the K1A prospect together with several new targets that extend to the north. PAT said the Kalaka Project has large scale, low-grade gold mineralisation potential. Historical drilling consistently reported significant gold intercepts including Diamond hole K1AD002 (191.8m @ 0.52 g/t Au) and Reverse Circulation drill hole K1ARC028 (117m @ 0.59 g/t Au including 41m @ 1.02 g/t Au) at the K1A prospect.

Comment: PAT finesses its recent share price strength with drilling extensions of the K1A prospects and other new targets. This should all shine a light on the increasing value that PAT is sitting on.

Helium One Global (HE1), the primary helium explorer in Tanzania, provided an update on progress at its Rukwa (100% Operated) project area including details of its Phase II drilling programme. The company said it was pleased to note the above significant progress made with its efforts to ensure it  drills its exciting Tai Prospect in Rukwa with a recently upgraded P50 Helium resource of 2.8 Bcf. This is indeed a milestone event for the company and opens up a range of ancillary options for the company as well as, most importantly, securing the control of its own drilling programme and any future appraisal and further exploration activities.

Comment: Perhaps what the market will be looking on most is the prospect of drilling in September, as revealed in this  latest RNS. Given that the stock has recently bounced off near term lows, it will be interesting to see whether looking forward to drilling will cause a recovery in the share price.

Zephyr Energy (ZPHR), the Rocky Mountain oil and gas company, provided an update on operations at its flagship Paradox Project in the Paradox Basin, Utah, U.S. The company said work on the State 36-2 well has progressed safely, and the team continues to push forward while maintaining control of the well and ensuring the safety of those working on it. Away from the 36-2 well, with recent operations including the restart of the Federal 28-11 well where hydrocarbons are now flowing.  While this well will not have the same volumetric potential as the State 16-2 LN-CC well or the State 36-2 well, it does believe it will have positive economic impact once its infrastructure buildout has been completed.  Two other existing wells in the Zephyr portfolio have also had notable prior shows of hydrocarbons and offer potential future locations and/or workover opportunities.

Comment: Given the nature of today’s RNS from Zephyr, it can be seen that perhaps the halving of the share price since 2023 peaks has been overdone. In particular, on the basis that further well development is waiting in the wings.

Contango Holdings (CGO), the London listed natural resource development company, announced it has entered into a new offtake arrangement with TransOre International FZE  for the sale of up to 20,000 tonnes per month of washed coking coal from its flagship Lubu Project in Zimbabwe, known as the Muchesu Project in country. CGO said this new contract is in addition to the ongoing discussions under the previously reported MoU with a global Multi-National Company. These discussions are centred around a larger coke operation at Muchesu. It expects to deliver further samples of its washed coal to the MNC later this month as part of the final stages of due diligence on the coke qualities of its product.

Comment: While it may be production that bulls of CGO are looking for and looking at, today’s chunky offtake agreement should be enough to distance the stock price from June lows over the course of the rest of the summer.

Artemis Resources (ARV), advised that lithium pegmatites have been identified on the Osborne Joint Venture (Greentech Metals Ltd 51% / Artemis Resources 49%). ARV said further work is planned on the Joint Venture tenement with sampling and mapping aimed at identifying the full extent of the mineralised pegmatite zone and the consistency of the lithium minerology and grade. Preparations have commenced to enable a maiden drilling program as soon as all approvals are received. The company also announced that Southern Geoscience Consultants have commenced a high-resolution dipole-dipole IP survey over the prospective Lulu Creek diorite intrusion. SGC have advised that the Greater Carlow MLEM surveys have finished, and the final data set received. The data is currently being processed, with results expected by mid-July.

Comment: Given the way that shares of ARV rallied last week on no news, one would hope that the flurry of information out today will be enough to keep the rebound alive. Hats off to last week’s clairvoyant stock buyers.

URA Holdings (URA) said that following the passing of Resolution 10 at the Company’s annual General Meeting, held on 30 June 2023 and in accordance with the terms of the CLN Agreement between the Company and Austin Acquisition 1 Limited (AA), the investing company of Andrew Austin, the £50,000 of £1 Convertible Loan Notes held by AA have been duly converted in to 2,500,000 ordinary shares of the Company at a conversion price of £0.02 per share.

Comment: It has been something of a mystery as to why shares of URA have not rallied much harder given the recent entrance of Andrew “42x” Austin as a shareholder. Perhaps today’s announcement reminding the market of his presence will help boost sentiment?

GreenX Metals (GRX) announced that it has entered into an Option Agreement with Greenfields Exploration Limited (GEX) to acquire up to 100% of the Eleonore North gold project in eastern Greenland. The company said the Eleonore North project diversifies GreenX with an exposure to gold and the bulk-tonnage target fits with the company’s strategy of pursuing globally significant discoveries. Its location allows it to unlock significant operational synergies in future field seasons with its ARC copper project in northern Greenland in conjunction with its JV partner and project manager Greenfields Exploration. It believes the mineral potential of Greenland is enormous, and it is progressively working on unlocking this potential.

Comment: GreenX has already been a strong market ahead of today’s announcement. One would suspect that the “enormous” potential of Greenland should help boost the shares still further.

Lexington Gold (LEX), the gold exploration and development company, announced that the company has raised, in aggregate, gross proceeds of approximately £2.5m from certain existing and new investors to, inter alia, unlock value from its proposed conditional acquisition of a 76 per cent. interest in White Rivers Exploration Proprietary Limited, an exploration and development company with significant gold assets in South Africa. The company said it firmly believes that a multi-million ounce JORC 2012/SAMREC compliant MRE can be established in respect of WRE’s existing asset portfolio and the new funds will help it progress this key objective, unlock value from WRE’s assets and also continue its work in the USA.

Comment: It is very impressive on the part of LEX to be able to raise £2.5m, something which underlines the potential of WRE, in what could be a transformational move for the company.

Ondo InsurTech (ONDO), the London-listed leader in claims prevention technology for home insurers, announced that Länsförsäkringar Trygghetstjänster have signed a new five-year contract to support LeakBot’s rollout across the group. ONDO said it was thrilled to have the opportunity to put its technology into homes across Sweden through our growing partnership with the Länsförsäkringar Group, reducing escape of water claims and protecting both houses and the environment by fixing leaks and saving water across the country.

Comment: ONDO continues to over deliver / surprise on the upside, and it should be the case that in the wake of today’s announcement more traders come to the party, as it becomes clear that its technology is a winner, especially in current market conditions.

Great Western Mining Corporation (GWMO), which is exploring and developing gold, silver and copper targets in Nevada, updated on current exploration activity. The company said it will be apparent that it has a very active exploration effort in progress and planned for the rest of this year, with numerous prospects to work on at different stages of development and which over time we plan to integrate with our milling joint venture now under construction and well advanced.

Comment: Another solid announcement from GWMO, as we see the company get into the kind of shape shareholders have been waiting on for so long. The well advanced milling JV remains the aspect to particularly boost sentiment.

Totally (TLY) reported finals for the year to March 2023 showing a 6.5% increase in Revenue to £135.7m with PBT up to £1.8m from £1.3m and EPS of 0.94p from 0.92p giving a P/E of 18x a Dividend yield of 3.7% at 17p where the mkt cap is £33.4m. Totally, have grown organically and by acquisition into being a leading provider of frontline healthcare services. Its focus is to reduce waiting lists for NHS patients where there are tight service parameters and its low gross margins of 18.4%  can be improved with technology. It is developing its higher margin 41.5% Corporate Fitness and wellbeing services revenue from £1.7m.  There was an £8.9m outflow of working capital which is tightly managed and net cash is £4m.

 

 

 

Comment:  There is no shortage of demand but the company’s ability to deliver demanding services to a tight budget is a challenge. Its tendering process for contracts may need reviewing to account for these price pressures particularly staffing. Funding to expand the corporate services could be available.

East Star Resources (EST), which is defining mineral resources in Kazakhstan, provided updates regarding its forthcoming drilling programme at the Verkhuba Copper Deposit in the Rudny Altai volcanogenic massive sulphide belt in Kazakhstan. The company said it is extremely excited to commence drilling this potentially game-changing copper deposit in a prolific copper region with established processing infrastructure. It has undertaken an extensive geological traverse over the project area in preparation, mapping more than 70 historical collar locations from the more than 42,000m of drilling which make up the Verkhuba Deposit, as well as a number of copper outcrops.

Comment: Shares of EST finally started to rebound last week, and in the wake of today’s announcement this would be expected to continue, if only on the basis of the sheer scale of the latest project, and the drilling programme.

Hemogenyx Pharmaceuticals (HEMO), the biopharmaceutical group, announced that the company has received a full review letter from the FDA regarding the Investigational New Drug (IND) application for the company’s product candidate HEMO-CAR-T for the treatment of acute myeloid leukaemia to the effect that HEMO-CAR-T be put on clinical hold. The company said it was confident that it will be able to address the FDA’s questions and concerns regarding the IND. AML has poor survival rates and it is eager to resolve this hold and continue down the treatment development pathway toward saving lives.

Comment: It looks as though HEMO will be able to prevail with regard to the FDA, something which of course could really move the dial as far as the company’s rating.