Chaarat (CGH), a mining explorer and developer with projects in the Kyrgyz Republic, announced the proposed recapitalisation and associated cancellation from trading on AIM, subject to shareholder approval. In this regard, the Company today is posting a circular to shareholders setting out further information, and containing the necessary Notice of General Meeting.
Comment: Despite companies leaving the stock market in droves, as yet, no one from the LSE, FCA, government or anywhere else has actually done anything about this apart from talking or gloating. Perhaps given how much the former makes (c.£1.5bn) it could introduce a listing cost holiday? Or maybe not.
Sosander (SOS) report finals to March 2024. After a poor H1 with a loss of £1.3m, H2 improvement sharply as the years losses were reduced to £0.3m on a 9% increase in full-year turnover to £46.3m. This UK fashion brand creates quality, trend-leading clothes for women of all ages and the focus is on margin enhancement and profitability rather than volume. Since the year-end gross profits improved further to 63.4% from 57%, but revenue is 28% lower at £8.2m. Its opening it first two stores shortly so becoming a true multi-channel retailer. Its customers can buy online from Sosandar.com is core and was strengthened with the launch of an app. A Head of Retail and Head of Retail Operations are to be hired as it becomes true multichannel retailer. There are also brand partnerships with Marks & Spencer, The Very Group, JD Williams, J Sainsbury and Next. The net cash position improved from £8.3m from £7.7m.
Comment (Jon Lev) : At 10.25p just off its year’s low there is room for the shares to improve.
Premier African Minerals (PREM) announced that settlement of the Loan Facility Agreement provided by George Roach which remains due will not be settled in either cash or shares from any of the two resolutions being proposed at the General Meeting on 29 July 2024.
Comment: It would appear that Mr Roach is in a similar position to shareholders who have taken part in recent fundraises.
CAP-XX (CPX), a company involved in the design and manufacture of supercapacitors and energy management systems, announced that it has signed a MOU with SCHURTER AG to work closely together on technology development and co-branded supercapacitor products. CPX said this MOU marks a new era of collaboration between the two companies and establishes a strategic technology partnership. By combining their extensive knowledge and capabilities, CAP-XX and SCHURTER aim to jointly develop innovative, competitive products and new application-specific solutions.
Comment: Those punters who have seen CPX 3x in recent weeks will be hoping that today’s news adds further meat to the bone of the rally, and ideally add to it.
Wildcat Petroleum (WCAT) released a Cat Flap Newsletter: President Kiir of South Sudan issued a number of presidential decrees, two of which affected the Ministry of Petroleum (MOP). The current undersecretary Dr Deng was replaced by Dr Thon and Dr Lino was made the new CEO of the state oil company Nilepet. The Wildcat team has a relationship with both individuals stretching back decades and the Company envisages that these changes will not affect Wildcat plans in South Sudan (re our RNS Announcement of 7 May 2024).
Comment: WCAT, if it receives the appropriate licenses stands to gain in a transformational way in South Sudan. The only issue is how long the waiting game will last? Presumably, we are close to a denouement.
Metals One (MET1), the European based resource developer of strategic metals, such as high-purity copper and nickel sulphates updates its JORC Inferred Mineral Resource estimate for its Black Schist Project in Finland. After listing last year at 5p, with 29 million tonnes IMR (0.18% nickel, 0.08% copper, 0.01% cobalt, and 0.33% zinc) the update reports the resource has doubled to 57.1 million tonnes. The historical data highlights an opportunity to significantly increase the volume of, and confidence level in, this mineralised structure. This brings the total value of in-situ metals to $3 billion, at today’s prices suggesting it is on track to becoming a world-class asset. As further expansion could underpin a 100 -200 MT resource, which is suitable for large -scale production. After recently raising c. £0.9m at 1p it should be funded for Preliminary Economic Assessment which is due in 2024. It has a ‘free £8m exploration carry’ with its partner Kingsrose, on the earlier stage Brownfield exploration of Råna intrusion in Norway.
Comment (Jon Lev): At 0.9p the mkt cap is £3m and the funding is in place to define the potential for one or even two major discoveries which should be increasingly reflected in the share price as the news flows.
Comment (Zak Mir): As stated several times on ZaksTradersCafe, MET1 would not have terminated the Gunsynd farm-in, and then raised money for Black Schist if the directors did not really believe that the project was to be upgraded significantly. Now it has one would expect the share price to respond in kind.
Celadon Pharmaceuticals (CEL), a UK-based pharmaceutical company focused on the development, production and sale of breakthrough cannabis-based medicines, announced the successful completion of its eighth harvest of 2024. This milestone underscores the merit of its modular facility design, which enables regular harvests and allows it to manage its production costs effectively, even in the unlikely event of lower-than-anticipated demand. This achievement not only highlights our capabilities as a trusted provider of pharmaceutical-grade cannabis but also positions it as a key UK player in resolving the well-documented supply challenges faced by the UK market.
Comment: It is a shame that despite the harvests CEL has not been able to get its message across so far as a listed company, with the shares recently hitting new lows. Clearly, producing cannabis is one thing, making money out of supplying it is another. Apparently, it is all in the cost of production.
Northcoders (CODE), a company involved in technology training in the UK, provide a trading update for the six months ended 30 June 2024, with trading in line with market expectations. The Group has experienced record demand in H1-2024, delivering a 26% increase in revenues during the period of £4.4 million (H1-2023: £3.5 million).
Comment: The recent share price recovery has anticipated today’s strong update, something which underlines perhaps how the more “boring” the business, the more reliable it is.
Spectra Systems (SPSY), a company involved in gaming security software, announced that on 15 July 2024 it entered into a contract worth $37.9 million to manufacture sensors for an existing central bank customer. A second tranche of consideration of $1.7 million is expected later this year upon signature of the related manufacturing contract. This would bring the sensor manufacturing revenues from the new contract to a total of $39.6 million. SPSY said this long-awaited contract for the third generation of sensors follows after over $14.8 million of development funding by its customer and reflects both the continued need for banknotes as well as the trust its customer has in Spectra Systems.
Comment: One can almost feel the effort that has been put into the announcement from SPSY, as well as the magnitude financially. Perhaps some CEOs can learn how success does not just land in your lap.
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