i3 Energy (I3E), an independent oil and gas company, announced the successful establishment of a reserve-based lending facility. i3 said the new Credit Facility marks a significant step in transitioning i3’s capital structure, enhancing the Company’s financial flexibility through improved liquidity and enabling acceleration of its growth and income-based business plan. i3 Energy Canada also announced its 2023 reserves, saying that its 2P reserves are valued at over USD 1.0 billion or £0.67 per share, demonstrating the value potential of this portfolio, and the scope for many years of growth from a total shareholder return perspective.
Comment: The latest lending facility news for i3 should mean that it is all systems go for the company, and its share price, after the hiatus of recent months.
Caspian Sunrise (CASP) said that in recent months it has entered into a number of discussions with potential buyers concerning the BNG shallow structures (excluding the BNG deep structures Airshagyl & Yelemes Deep) at indicative prices potentially significantly greater than its current carrying value. Any deal at these levels because of its size relative to the Group as a whole is likely to require the approval of Caspian Sunrise shareholders.
Comment: There are dozens of companies on the London market who could release value on a sum of parts basis. It is pleasing to see CASP get on the front foot in this respect.
ImmuPharma (IMM), the specialist drug discovery and development company, highlight the announcement issued this morning by Incanthera (AQSE:INC), the dermatology and oncology specialist, in which ImmuPharma currently holds a 10.8% shareholding. IMM said as a major shareholder in Incanthera, it was delighted with this further progress and in particular Incanthera’s revenue momentum and move into profitability. This highlights the strong financial asset it has in Incanthera and the enormous opportunities within the company’s revolutionary skincare range and its partnership with Marionnaud.
Comment: INC was and is a jewel in the crown for IMM. We should expect the company to revamp the enthusiasm seen surrounding the stock at the start of 2024 shortly.
Supernova Digital Assets (AQSE: SOL), a company specialising in the Solana ecosystem, announced its audited results for the year ended 31 October 2023. SOL said the Company had invested significant sums into the businesses that were divested in the expectation that this sector would generate profitable returns for shareholders. It chose to invest most of its free cash into Solana at a price of £27.28. As of the date of signature of these results, the price of SOL is £134.40 and thus the Company has an unrealised gain of approximately £2,904k on this position. SOL invested £2,290k in the IPO of Streaks AI PLC in December 2022 and £10k for 100% of the share capital of London Carbon Exchange Ltd. In addition, the Company has 30,000,000 shares in Phoenix Digital Assets (previously called NFT Investments plc).
Comment: SOL apparently has had an embarrassment of riches in the recent past, courtesy of the digital asset boom. It is shame that the share price has thus far not really reflected this good fortune.
Cobra (COBR), an exploration company focused on the Wudinna Project in South Australia, is pleased to announce that preliminary results from recent sonic core drilling at the Boland ionic rare earths prospect further demonstrate that the discovery could be a world class source of magnet and heavy rare earths. COBR said these results are sensational! It is pleasing to see its value proposition materialise, and these results, coupled with the excellent metallurgical recoveries achieved last year, demonstrate Boland is not only unique but world class.
Comment: It is a shame COBR has not yet got itself on the radar as far as investors are concerned, despite a long run of position developments and announcements. Hopefully, today’s news will speak for itself given the “sensational!” and “world class” comments.
Kanabo Group (KNB), a patient-focused provider of digital health services and medical cannabis treatments, announced the commencement of a new chapter in medical cannabis following Friday’s approval by the German Bundesrat of a law reclassifying medical cannabis as a prescription medication. KNB said this is a historic day for the medical cannabis industry. With Germany poised to emerge as one of the world’s largest markets for medical cannabis, Kanabo anticipates significant growth opportunities within this evolving landscape. It is in negotiations with strategic distributors for Kanabo’s products that the directors believe should materialise in the future and the Company will update the market in due course.
Comment: A great day for the likes of Bob Marley (from the grave), Snoop Dogg, Willie Nelson, and hopefully soon the Kanabo share price.
GCM Resources (GCM), an AIM quoted mining and energy company, announced the appointments of Paul Shackleton and Charlie Green to the Board as independent Non-Executive Directors with immediate effect. Paul Shackleton will serve as acting Chairman.
Comment: It is very good to see Charlie Green back in the City saddle, especially as GCM has experienced a decent turnaround in recent weeks. Green and Shackleton should finesse the new look GCM.
Neo Energy Metals (NEO), the near term, low-cost uranium developer, announced that Non-Executive Chairman Jason Brewer has been appointed Executive Chairman with immediate effect. NEO said Mr. Brewer’s move to an executive role is to support the Company’s Chief Executive, Sean Heathcote, in delivering on the accelerated development plans of the Henkries Uranium Project and expanding the company’s uranium interests around Henkries and throughout Southern Africa. Brewer is currently CEO of London listed Marula Mining plc, and a director of Shuka Minerals plc and Unicorn Mineral Resources plc.
Comment: JB as Executive Chairman at NEO is just what the doctor ordered to enthuse the market at a time when uranium is the hottest commodity around. One would expect the stock to start re-rating back towards where it arrived in the market back in November.
Mkango Resources (MKA) announced that it has conditionally raised gross proceeds of £750,000 (approximately C$1.3 million) through the issuance, on a private placement basis, at a price per Subscription Share of 5 pence. MKA said given the share price decline during this period, the Company has decided to minimise shareholder dilution at the current share price by raising a relatively small amount of money to enable the Company to achieve key milestones for HyProMag. In addition, to ensure enough financial runway to achieve these goals, the Company has implemented a cost cutting exercise which will materially reduce the Company’s monthly cash burn.
Comment: It was / is perhaps not too surprising that MKA has taken advantage of the slight rebound in the stock to raise cash. We can appreciate the company’s intention not to over dilute shareholders at this stage.
Power Metal Resources (POW), the London listed exploration company with a global project portfolio updated on the planned IPO of a number of its uranium interests using Uranium Energy Exploration plc (UEE) as a vehicle to achieve an admission to AIM. POW said a number of significant potential strategic investors have indicated their preference for alternative deal structures which may include a different combination of assets, or an enlarged asset set with an enhanced business model. POW is therefore considering all options and will revert in due course on the progress of those discussions and how this would affect the proposed IPO of UEE both in terms of timing and structure.
Comment: Given how hot uranium is currently, one would expect any re-jigged version of Uranium Energy to be snapped up by investors, and join the lengthening list of IPOs that POW has delivered, as it helps to single-handedly re-populate the London stock market.
KEFI Gold and Copper (KEFI), reported further positive developments at the Company’s high-grade Tulu Kapi Gold Project in Ethiopia, as it prepares for full launch in H1 2024. KEFI said it was delighted to report the initial board approval of a major local equity-capital provider. And it is especially pleasing that the instrument designed for this transaction, the Equity Risk Note, has been streamlined under the lower-cost approach. Its modelling and production profile for this high-grade open pit gold mine, based on a gold price of US$1,864/oz (versus current spot of US$2,170/oz), shows sufficient cash will have been generated at the proposed time of repayment to repay these ERN in cash at the time they fall due.
Comment: Some cynics may say that they will believe KEFI’s H1 2024 “full launch” when they see it. Indeed, so might the rest of us given the company’s style of promotion and track record.
OptiBiotix Health (OPTI), a life sciences business, announces it has raised in aggregate £1,350,500 at a price of 20 pence. OPTI said it has made strong progress over the last 12 months with its first-generation products returning to sales growth, a number of well-known corporate partners reaching agreements (e.g. Tata, Brenntag, Morepen) and the launch of new products with major brands (MuscleTech, Dr Morepen) in new channels. It is also seeing growth of online sales, particularly in China, and the potential to replicate this success in other territories, such as India and the USA.
Comment: Another company where the style of promotion and hype and only led to a common or garden placing. One might have imagined that all the sales and agreements would have generated enough income not to dilute shareholders.
Lexington Gold (LEX), the gold exploration and development company, provided an operational update on its drill programmes at both the Jennings-Pioneer Project in the USA and the Bothaville Project in South Africa. LEX said the commencement of drilling at its Jennings-Pioneer Project in the USA and the successful completion of drilling at its Bothaville project in South Africa represent significant milestones in its strategic gold exploration initiatives.
Comment: LEX may have hit a decent milestone today, but the shares should be far higher up the range given the record levels of gold. One awaits at least a modest rebound from near year lows.
URA Holdings (URAH), the gemstone mining company currently focused on the restart of production at the Gravelotte Emerald Mine, announced that its operations have now entered the commissioning phase, targeting first production before the end of April 2024. URAH said it was pleased to report that it is on track to first production before the end of April and the start of commission of the processing and sorting plant is a significant final step in achieving this objective. Operational readiness and the transition to daily operations is a key part of this phase as it looks not only to first emerald production but also towards ramping up production with a view to achieve first sales from the historic emerald mine for over 20 years.
Comment: URAH shareholders will be happy with the end of April as a deadline for production, after what has been a relatively tight timeline to production, especially as compared to most other mining plays.
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