Power Metal Resources (POW), the London listed exploration company, update shareholders on the progress being made through its 100% owned subsidiary company, Power Arabia Ltd. POW said whilst there is never complete certainty of a successful outcome, of either the pre-IPO financing or the listing of Power Arabia on the London capital markets, it was very excited to bring this IPO to London and strongly believe that its model will be successfully replicated across the Arabian Gulf region and will deliver significant value to shareholders.
Comment: Given the exodus of companies from the London market, POW should be commended for repopulating AIM with its spinoffs. The latest IPO could be the best of bunch in terms of market timing alone.
Marula Mining (AQSE: MARU), an African focused mining and development company, announced that NyoriGreen Mining Limited, the Company’s partner at the NyoriGreen Graphite Project in Tanzania, has made eight new Mining License and one new Prospecting License applications. MARU said it was excited about the progress made in advancing Nyorinyori and NyoriGreen Graphite Projects in Tanzania. The new mining license applications, along with one prospecting license, marks a significant milestone in it strategic expansion efforts as it continue to build on it strong East Africa portfolio.
Comment: Another day, another RNS from MARU, and it can be seen that the company is advancing the much needed graphite cause, given the priority to develop sources of this key commodity away from China.
TP ICAP Group (TCAP) announced its financial and preliminary management report for the year ended 31 December 2023. The company said revenue increased by 3% in constant currency, building on last year’s strong performance. Its focus on productivity, contribution and cost management generated an 8% uplift in Group adjusted EBIT to £300m, the highest level of profit ever achieved by the Group. Energy & Commodities played a key role in hitting this important milestone, delivering record growth: revenue up 18%, and adjusted EBIT up a significant 45%.
Comment: Results here reinforce the company’s influence on the London trading floors, with large commodity driven segment increases revenue by 18%, considering the drop off in prices in 2023. A strong report card!!
Landsec’s (LAND) wholly-owned subsidiary, Land Securities Capital Markets PLC, has launched and priced a £300m bond with a maturity of 7.5 years, paying a coupon of 4.75% and representing a spread of 103 basis points over the reference gilt rate, subject to final legal documentation. The company said this transaction further enhances Landsec’s strong financial position, extending our weighted average debt maturity to 9.4 years and underpinning our future growth opportunities.
Comment: The new bond issuance should stimulate the UKs Greenfield economy post Today’s key financial data. Expect further consolidation in this space.
FirstGroup (FGP) provided an update on trading since the half year results published on 23 November 2023. The company said its focus on operational delivery, driving demand for our services and growing and diversifying its portfolio has resulted in further progress in the second half of its financial year. This leaves it well positioned to create further sustainable value for all our stakeholders.
Comment: The continued buyback of their corporate debt,coupled with better than expected performance highlights strong potential for further acquisitions and control of running the Elizabeth line for TfL.
Aura Energy (AURA) announced Phase one drilling results demonstrating significant resource growth potential at Tiris beyond the current uranium Mineral Resources of 58.9Mlbs U3O8. Aura said the drilling results are excellent and clearly demonstrate the significant potential to grow the Mineral Resources at Tiris beyond the current 58.9Mlbs U3O8. Two large areas of new mineralisation have been defined during the initial phase of drilling at both Hippolyte South and Sadi. Further, drilling has defined extensions to known mineralisation throughout the project area.
Comment: Given how sought after uranium is at the moment, it is perhaps disappointing so far that the shares here remain mid-range at best. This is a state of affairs that may start to change after today’s revelation.
Dekel Agri-Vision (DKL), the West African agriculture company, has been notified that earlier today, Lincoln Moore, Executive Director, purchased 500,000 ordinary shares of €0.0003367 each in the Company. As a result, Lincoln Moore now has a total notifiable share interest in the Company of 6,049,791 ordinary shares, representing 1.1% of the Company’s issued share capital.
Comment: Shares of DKL have appeared chronically undervalued as compared to the progress being made by the company over the past couple of years. This point is underlined by the Executive Director leading from the front in terms of buying into the stock.
URA Holdings (URAH) revealed that Mark Horrocks and family interests (Intrinsic Capital LLP) were up on the shareholder register at 4.7%. This follows Premier Miton announced as buying in at 6.79% yesterday.
Comment: URAH said that two high profile investors had approached the company to buy into the emerald mine production story. Mark Horrocks joins Premier Miton on the shareholder register, both of whose backing are perennial badges of honour for a small cap company.
Andrada Mining (ATM), the African technology metals mining company, provided an update on the expansion plans for lithium, tin, and tantalum production at the flagship Uis Mine together with an update on the Strategic Process. ATM said that while it focusses on achieving its ultimate goal of unlocking the scale potential of its deposits, the short-term goal of maximising revenues from current operations remains key to providing free cashflow for the organisation, whilst simultaneously derisking the flow sheet. The expansion of tin production will enable Andrada to align with its royalty obligations, whilst the commercial production of tantalum will fulfil a supply agreement with Afrimet.
Comment: ATM still manages to have a less than worth stock market rating. One would say that given all the water under the bridge and the prospects of the company the stock should be well north of 10p, rather than 5p. One awaits moves by ATM to address this aberration.
Renalytix (RENX) announced the launch of an equity placing of approximately US$10 million. The Company said its existing cash resources and net proceeds from the Placing will be used to fund working capital requirements. The Company’s current cash runway, in absence of further financing, runs into April 2024. It is expected that the net proceeds of the Placing will extend the cash runway of the Company into Q4 2024.
Comment: It would appear that RENX is doing an Avacta with this rather large “one and done” fundraise. That said, it is perhaps a tad disappointing that the $10m will not at least stretch to 2025.
Panther Metals (PALM) the company focused on developing Canada’s next VMS camp and graphite deposit, announces it has sold a total of 2,346,717 ordinary shares of 1 p each in Fulcrum Metals PLC on 11 March 2024 at an average price of 15.2 pence. PALM said as Fulcrum’s Teck-Hughes Gold Tailings Project venture unfolds over the coming months, given the technology available at their disposal and the appetite for gold, it sees Fulcrum have the potential to set the London junior market alight. A story it believes the Fulcrum team are currently underplaying.
Comment: Given that one has no doubt that with Jason Brewer on board at FMET, the company will set the stock market on fire, it is perhaps a shame that PALM will not have as much exposure to this golden period as previously after the latest share sale.
Haydale Graphene Industries (HAYD) interims highlights to December report a reduced loss and cash of £3.3m remaining from last year’s £6.2m fund raise at 0.5p. Listed in April 2014, the turnover from commercialising a portfolio of potential wonder-based graphene materials increased by 38% to £2.47m, its admin cost increased 8%, while adjusted losses reduced to £1.6m. This Welsh based business has a partnership with the Welsh Government to further develop energy efficient graphene based thermal transfer fluid. The focus on underfloor heating and thermal fluid which supports Net Zero and attracts grants. Discussions are progressing with potential end users.
Comment: The market cap of £8m at 0.45p could benefit IF a wonder application is commercialised in the next 12 months and as the past is no indication of the future, there is clearly hope.
H&T Group (HAT), the UK’s largest pawnbroker, announced its preliminary results for the twelve months ended 31 December 2023. The company said it has made significant progress in 2023, delivering record profits and strong growth in a challenging environment for both businesses and individuals. Pawnbroking is its core business and is attracting increasing numbers of new customers. Throughout the year, it saw record demand for its pawnbroking service and this has continued into 2024, with January being a new record month for lending.
Comment: Net revenue up to records levels and increase of 36% yoy reflect the markets desire to depart with safekeeps to pay tge incresing cost of living. A stark foretelling of a squeezed consumer price economy.
Housebuilder Persimmon (PSN) revealed its full year results. The company said that it successfully navigated the challenging market conditions in 2023. Completions were ahead of expectations, margins were industry-leading, it maintained its strong balance sheet and it continued to deliver further improvements in its product quality and service.
Comment: The dividend of 60p looks a tall order with reduced balance sheet and cash on hand slipping. It could be a more than uphill struggle for this particular housebuilder with margins on sales at the thin end of the spirit level.
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