Zephyr Energy plc (ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development, announced its audited results for the year ended 31 December 2023. ZPHR said despite facing a significant operational challenge during the year, it continued to make steady progress in its pursuit of unlocking the next prolific onshore U.S. oil and gas play. It was delighted by the recent safe and successful drilling operation on the State 36-2R LNW-CC well was looking forward to the results from the forthcoming production test.
Comment: This has been a year when ZPHR turned the corner, both in terms of the operational side and stock market sentiment. One would expect further momentum to gather, now the company’s ducks are in a row.
Invinity Energy Systems (IES), a manufacturer of utility-grade energy storage, announced its Full Year Results for the year ended 31 December 2023 that are in line with expectations. 511% increase in total income YoY to £22.0m (2022: £3.6m), marginally ahead of guidance provided on 18 December 2023 and largely due to an 800% YoY increase in products shipped (32.5 MWh) during the period. IES said its impressive gains in 2023 delivered on the very high expectations it set for itself and established an appropriate foundation for a successful fundraise just completed. It welcomes its new investors as we focus on progressing toward positive cashflow with a compelling new product and a low-capex strategy for delivering it at scale into a market hungry for energy storage.
Comment: It is not often that one sees 500% and 800% increases in a RNS, but the newly financially invigorated IES (£50m) has plenty of fire power to progress in a “hungry” market.
Roadside, (ROAD) the roadside real estate business, announced its unaudited interim results for the six month period to 31 March 2024. The Company continued to focus on its roadside real estate strategy via its JV with Meadow Partners LLP, whilst executing its disposal strategy. ROAD said “Having refinanced the business we are now actively pursuing the assembly of our institutional quality roadside real estate portfolio, with c.£100 million imminent pipeline via the above mentioned JV. We have a quality roster of prospective tenants keen to occupy our planned acquisition sites, which will feature a combination of Drive-Thru, Foodvenience, Local Logistics, Trade Counters and Electric Vehicle charging stations.”
Comment: ROAD has emerged as one of the more exciting and scalable small cap prospects for H1 2024. One would expect the company to deliver even more in the second half of this year.
Power Metal Resources (POW), the London-listed exploration company with a global project portfolio, announced the results from drillhole DDH1-14C at its Molopo Farms Complex Project where the Company is targeting a district-scale nickel (Ni) and platinum group element discovery in southwestern Botswana. POW said it was pleased to be able to announce this drill result, which shows continued progress at Molopo Farms. It achieved its principal objective, which was the intersection of the sharply dipping conductor, and it was grateful to the drilling team and the geophysicists who worked so hard to define and prove this difficult target.
Comment: Molopo looks to be a key focus at POW, and it can be seen the company is keen to get it over the line, and explore whatever options required to do this.
Arc Minerals (ARCM) announced its audited results for the year ended 31 December 2023. ARCM said the period ahead promises to be an exciting time for exploration and growth for Arc Minerals. With mobilisation for the exploration field season commencing in Zambia following the end of the rainy season, it eagerly anticipates the commencement of its joint venture core diamond drilling programme, initially targeting two identified prospects. The comprehensive 2024 work programme, including LiDAR surveys, detailed geological mapping, and further geophysical studies, will provide it with a deeper understanding of the geological context and basin geometry, paving the way for potential future discoveries.
Comment: There would appear to be something of a kickback against ARCM director remuneration on the chatrooms. But it should be remembered that those school fees do not pay themselves, especially with VAT on top.
Hummingbird (HUM) provided the following statement from the Company’s Chief Executive Officer and Interim Chairman, Daniel Betts, ahead of the AGM. HUM said that despite the unexpected challenges at Kouroussa, including the fire at the national fuel depot in Conakry and the temporary suspension of operations by Corica, operations have fully resumed, and it anticipates reaching commercial production at Kouroussa in Q3-2024. With this progress, the Company is well-positioned for significant growth, solidifying its status as a multi-asset, multi-jurisdictional gold producer.
Comment: While the market has been keen to punish even incidental issues at HUM, as if they were company breakers, it has been a case of what does not kill you makes you stronger. At the current valuation one can say that HUM has been duly stress tested.
Made Tech (MTEC) reported its Update for 12months to May 2024. Revenue slipped from £40.2m to £38.5m in a challenging procurement market for digital services from government departments. They have won £36m in new Sales including a two year £19.5m contract with The Department for Levelling Up, Housing & Communities with a 12-month extension option. Trading for the current years has started strongly with a contracted backlog of c.£65.4m compared to £67m. The improved EBITDA expected to increase to £2.2m from £1.5m which is helped by successfully driving operational efficiencies. MTEC work with Government departments to design and development of new digital tools and services. Its debt free and has a strong balance sheet with £7.6m net cash.
Comment (Jon Lev): The SB2G (Small- Business to Government) market seem an area for strong opportunity at 14.75p the EV (mkt cap- net cash) is £15m so an EBITDA /EV of 7x it seems low…
Alteration Earth (ALTE) said it entered non-binding heads of terms to acquire the entire issued share capital of PRI0R1TY AI PLC, in consideration for an issue of new shares in the Company. PRI0R1TY is an artificial intelligence (AI) driven, data powered software as a service (SaaS) solution that aims to help businesses at various stages of their journey by creating efficiency through technology. Its objective is to assist SMEs by providing a combination of services derived from deep learning, data architecture and AI models. ALTE said the PRI0R1TY team has identified a clear market need and developed a commercially viable product that provides scalable and adaptive solutions powered by AI.
Comment: A win-win deal for PRI0R1TY in terms of the much higher valuation it now has compared to its mooted IPO, and the journey to AIM. What a pity it will now not be going to Aquis.
Firering Strategic Minerals (FRG), a development company focusing on critical minerals, announced its Final Results for the year ended 31 December 2023. c£2 million raised post period end to commence funding the acquisition of an initial 20.5% of Limeco, as well as finance the recommissioning of the lime plant and ramp up of its operations. The project is debt free with an estimated resource of 73.7Mt @ 95.3% CaCO3 and an estimated limestone stockpile of 190,000 tonnes, which will be used to start production.
Comment: The key phrase here for FRG is “debt free”, something which the company’s low profile and low share price, should be aspects for bottom fishers to note.
AAA has agreed to make a further investment in its key portfolio asset, the Belgian predictive AI business, Sentiance N.V., in the form of a loan, convertible into new shares. Following completion and conversion of the First Investment in March 2025, AAA will own 43% of the share capital of Sentiance.
Comment: It is perhaps ironic that following the latest move by AAA on Sentiance, the theoretical value of the company is arguably rather more than the £500m it was a couple of years ago when it was suspended / sabotaged when an AIM listed company. We have a possible phoenix from the ashes, that is better than the original.
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