RNS Hotlist July 22: Cadence, Croma, CleanTech, Helix, Kavango, Pennpetro, Synergia, Upland, URA Holdings
Helix Exploration (HEX), the helium exploration and development company focused on helium deposits within the ‘Montana Helium Fairway’, announced the commencement of construction work on access road and drill pad at the Ingomar Dome project area in Montana. HEX said it will keep investors updated as drilling progresses via RNS, potentially including updates on commencement of drilling, significant helium gas shows in drilling mud, wireline results, initial flow test results and full flow test results.
Comment: HEX shares remain near their best levels after nearly tripling since the IPO in April. One would expect the re-rate to continue as the drilling process becomes more advanced.
Further to its announcement of the execution of a farm-out agreement with Selan Exploration Technology Limited regarding the Company’s Cambay Field Production Sharing Contract on 14 February 2024, Synergia Energy (SYN) announced the approval by the Government of India for the transfer of a 50% interest in the Cambay PSC to Selan effective 19 July 2024. SYN said the Farm Out Agreement with Selan marks a pivotal moment for Synergia and its long history with the Cambay PSC. It looks forward to an early commencement of work-over and drilling operations to realise the value of the significant Cambay PSC reserves.
Comment: SYN finally gets its Man From Del Monte moment, something which hopefully will finally give patient shareholders the big re-rate they have been waiting on so long.
Upland (UPL) said that as it nears its AGM on July 30th in London, the company confirmed that it is in continuing communication with the Sarawak Government. The Sarawak State Government is the final authority for the awards of Petroleum Sharing Contracts for Sarawak Onshore Assets.
Comment: Given that everyone and their mother is waiting on PSC, a little teaser RNS ahead of the AGM next week seems more than appropriate for this punting favourite stock.
CleanTech Lithium (CTL), an exploration and development company advancing sustainable lithium projects in Chile, announced completion of the first stage of production from the Company´s DLE pilot plant operations and results from successful downstream process test work to produce battery-grade lithium carbonate by process partners in North America. CTL said it was very pleased by these results as it shows it can produce battery-grade lithium with low impurities from its Laguna Verde brine project. Working with its partners on the downstream process, Forward Water and Conductive Energy, it can now demonstrate the entire DLE process from brine to final lithium product. The optimised downstream process will now be applied to the initial volume of 88m3 of concentrated eluate, or approximately 1 tonne of LCE, produced from the first stage of production from our DLE pilot plant.
Comment: It is no surprise that shares of CTL have recently rebounded well, given the operational progress the company is clearly making, especially in terms of the purity of the lithium carbonate, and of course the green credentials of the DLE process.
URA (URAH), the gemstone mining company announced a production and operational update for the Gravelotte Emerald Mine following the commencement of phased production, 11 weeks ago, on 29 April 2024. URAH said it was highly encouraged with the progress being made at the Gravelotte Emerald Mine. Its current emerald grade of over 6 g/t validate its expectations, and the improvements in its processing systems have set a solid foundation for increased output. The successful recovery of larger emeralds including a 50-carat emerald, and the achievement of an optimal recovery rate, are significant milestones. It is on track for its first trial sales later H2 2024.
Comment: While URA has just announced a fresh acquisition, we are reminded today that the flagship Gravelotte mine is currently the main driver for the company, and appears to be exceeding expectations. Clearly, the current share price near 1.6p does not reflect this potential.
Kavango Resources (KAV), the Southern Africa focussed metals exploration company, announced successful completion of drilling the first high priority target at the Karakubis Copper Project in Botswana’s Kalahari Copper Belt. Field analysis of drill cores taken from this target confirms the presence of a copper-silver mineralising system at Karakubis, as well as further indicators of structural trap sites. KAV said it started drilling at Karakubis to confirm the presence of a copper-silver mineralising system. Results from its first target have surpassed its expectations. This validates the geological model and confirms the potential to discover a large-scale copper/silver deposit.
Comment: It has been over a month since the last RNS from KAV, and it feels like it has been much longer. Given that the shares are up over 120% year to date, today’s news should keep that stock momentum going.
Cadence Minerals (KDNC) noted that ASX listed Evergreen Lithium Limited (ASX: EG1) in which Cadence has an 8.74% equity stake has announced progress from initial exploration activities at its highly prospective Bynoe Project, 50km south of Darwin and directly east of Core Lithium’s Finniss Mine in Australia’s Northern Territory. EG1 said intercepting a blind pegmatite that is not outcropping on your first day of drilling shows that we are at the start of something good. Achieving this early proof of concept gives us confidence in our approach for EverGreen Lithium’s ongoing exploration programs. The field team and drilling contractors have done a great job getting to this point and the program will move forward quickly from here.
Comment: While the main focus at KDNC continues to be the further upgraded flagship project, Amapa, we are reminded of the importance of Evergreen and the contribution it has made to KDNC as well. Of the back of this, the current £5m market seems paltry.
Tristel (TSTL), the manufacturer of infection prevention products, announced a trading update for the year ended 30 June 2024, having delivered a strong trading performance ahead of market expectations and the Company’s own performance targets. Revenues for the year were up 16.4% to £41.9m (FY 2023: £36.0m), ahead of market expectations and above the Company’s performance target for revenue growth (an annual average of 10-15% over three years). Adjusted profit before tax will be no less than £8.0m, ahead of market expectations and 29% ahead of last year (FY 2023: £6.2m). Tristel continues to be debt free and cash generative. Cash balances on 30 June 2024 were £11.6m (30 June 2023: £9.5m). Paul Swinney, CEO of Tristel said: “This is my last trading update before I hand over the reins to our incoming CEO in early September and I am delighted to report to shareholders that the business has delivered another strong trading performance and growth ahead of both analyst expectations and our own growth targets.”
Comment: Although it is always good to leave people wanting more, the stellar performance from TSTL should mean shareholders are begging the outgoing CEO not to head off into the sunset. One can only imagine a job at a FTSE 100 company beckons.
Pennpetro Energy (PPP), advised that Huston Texas based drilling contractor, J&J Drilling International LLC, have now been engaged by Globalvision International U. LDA to start in early August to work on the oil wells in Gonzales County, Texas. PPP said both parties are working well together to complete all of the documentation required to close this important transaction for Pennpetro by month’s end and it was very pleased to inform shareholders that Globalvision have informed it that that they have now booked their drilling contractor for the Texas oil production operations.
Comment: Fans of small cap investing will be happy that shares have gone up and stayed up on last week’s transformational news, which today’s announcement finesses. Interestingly, the company tweeted that it did not need to conduct any interviews as the news speaks for itself…
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