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RNS Hotlist June 27: ATOME, Cadence, Creo, Galileo, IQ-AI, Panther, Predator, SEED


RNS Hotlist June 27: ATOME, Cadence, Creo, Galileo, IQ-AI, Panther, Predator, SEED

Panther Metals (PALM) the company focused on mineral exploration in Canada, provided an exploration permitting update for the Dotted Lake property in the Province of Ontario Canada. The area is considered very prospective for ultramafic intrusive related nickel and base metal mineralisation. The company said its thanks goes to Pic River and Pic Mobert First Nation communities in their continued help and advice as it puts together an application that is comprehensive and strategically important, and which will allow it to fully understand the opportunity provided by the compelling geological data it has for the north shore of Dotted Lake.

Comment: PALM has been in recovery mode as far as its shares have been concerned, after the stock was dragged to ridiculous levels. Yesterday’s successful fundraise by First Class Metals provides a shot in the arm for the small miner space, and PALM follows on with the application starting gun on Dotted Lake, which should prove to be a highly prospective.

ATOME (ATOM), the international green hydrogen, ammonia, and fertiliser project development company, announced its audited results for the year ended 31 December 2022. The company said the financial statements present group results for the ATOME Energy Group for its first full year of independent operations. Total comprehensive loss for the year ended 31 December 2022 was $5.9 million (2021: $2.2 million), in line with expectations, reflecting the increased level of activity and fast track development throughout ATOME’s project portfolio.

Comment: ATOM currently represents one of the few situations on the stock market where one can say that the fundamental performance does not warrant the precipitous decline in the share price, neither in terms of the magnitude of the losses, or the value of the company’s IP.

Cadence Minerals (KDNC) announced its final results for the year ending 31 December 2022. The company said the Amapá iron ore project remained the primary focus for Cadence’s management. Cadence was heavily involved in the operational progress seen to date, which cumulated in the delivery of a robust Pre-Feasibility Study, which confirmed the project’s strong economics. To date, its investment has been circa n$9.3 million for 30% of the Amapá iron ore project; the net present value of 100% was estimated in the PFS at $949 million.

Comment: Today’s announcement by KDNC was perhaps a good reminder that it is sitting on a near $1bn NPV for Amapa, versus a £15m market cap. The company has managed thus far to keep this disparity relatively quiet, as opposed to singing it from the rooftops.

Galileo Resources (GLR) informed shareholders that it has exercised the option to enter a Joint Venture and be issued a 51% interest over the Shinganda Project Copper-Gold Project, Zambia following the expenditure of more than $500,000 in direct exploration costs. Work has also been stepped up to fast-track several further copper-gold targets to drill-ready stage within the Project area. The company said the 51% earn-in and formation of a joint venture demonstrates its commitment to the Shinganda copper-gold project. The more work that it does the more confident it becomes, and it is grateful for the previous work carried out by Vale which, while not advanced enough to define a mineral deposit, was pivotal in establishing its initial work programmes which have taken it to the current position.

Comment: GLR continues to make progress, which as it says demonstrates not only confidence in Shingada, but also backs the work carried out by Vale. It remains a mystery as to why Galileo shares are on the wrong side of 1p, given the fundamental progress in the mix.

SEED Innovations (SEED), the AIM-quoted investment company, announced its final results for the year ended 31 March 2023. The company said the financial year was challenging due to macro-economic and political factors affecting stock market stability however SEED remains optimistic about delivering sustainable growth in the long term and believes the portfolio’s underlying value will be better reflected in the share price. Current cash position of c. £2.5 million to capitalise on investment opportunities.

Comment: It is worth noting comments on social media that SEED shares are trading at a near 75% discount to NAV. Apart from “what a time to be alive”, one wonders what the actual function of the stock market is these days?

Creo Medical Group (CREO), the medical device company, updated to shareholders ahead of its AGM being held today. The company said Creo Medical continues its evolution from UK medical device innovator into an international group focused on the clinical and commercial adoption of a full suite of electrosurgical products. Having reported revenues in 2022 of in excess of £27m, it continues to experience growing demand for both its core technology and its complementary range of endotherapy devices.

Comment: Although electrosurgical products sound somewhat painful, it has been evident given the re-rate of Creo shares this year, that the company’s change of focus from device innovator has caught the imagination of the market, something which is not exactly easy in current stock market conditions.

Imaging Biometrics, LLC (IB), a wholly-owned subsidiary of IQ-AI Ltd (IQAI), shared the results of two pre-clinical studies that were presented at last week’s 2023 Society of Neuro Oncology (SNO) Pediatric Conference in Washington, DC. Each study demonstrated inhibitory effects of oral GaM in two types of pediatric brain tumors in vivo; atypical teratoid rhabdoid tumor (ATRT) and glioblastoma multiforme (GBM). Oral GaM is the same agent being investigated in adult GBM in IQ-AI’s sponsored phase I clinical trial being conducted at MCW. The results of each study were consistent with previous in vitro work conducted in the Schmainda Lab showing tumor growth inhibition and a survival benefit from treatment with oral GaM. In April, IB applied for Orphan Drug Designation to the FDA for the use of GaM in pediatric brain tumors. The application is under review and, if granted, would support the development and evaluation of a new treatment alternative for an unmet clinical need.

Comment: Shares of IQ-AI spiked in March towards 5p, and arguably deserve to do the same now in the wake of the latest two pre-clinical studies. Hopefully we are in run up to the FDA green light, given the seriousness of pediatric brain tumours.

Predator Oil & Gas (PRD), the Jersey based Oil and Gas Company with near-term gas operations focussed on Morocco, announced the successful completion of drilling and logging operations for the MOU-3 well appraising the Moulouya Fan primary reservoir target and several secondary reservoir targets encountered in MOU-1 drilled in 2021. The company said the MOU-3 well has validated its pre-drill upside forecast for sand development in respect of the main Moulouya Fan target. A gross interval of 43 metres will be evaluated by a rigless well test. It has increased its inventory of potential gas reservoirs for a CNG development with the discovery of very shallow over-pressured gas.

Comment: Having (hopefully) got all its near term fundraises out of the way, the company can surf the wave of positive newsflow, such as released today. The share price could yet surprise on the upside, as it arguably has already.

Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.



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