Skip to main content

Your stock market edge

Helium One Global (HE1), the primary helium explorer in Tanzania, announced its unaudited results for the six months ended 31 December 2023, and updated on progress across the Company’s projects in Tanzania post half year-end, as well as future operations at Rukwa. HE1 said the results from Itumbula can only be seen as transformational for the Company; flowing helium concentrations at these levels to surface would position Itumbula in the top section of major helium producing fields and this success is a testament to the hard work of the team and their expertise. The results acquired across both wells will now hold its focus as it looks to evaluate the best way to advance this project in the most effective way possible.

Comment: HE1 managed to negotiate 2023 in what turned out to be a very skilled way, given that it was negotiating funding on the one hand, and the slings and arrows of drilling. That said, there is a lot of helium required, and a lot of share price recovery to get the company back to stability, over and above the relief over Itumbula.

Cadence Minerals (KDNC) provided an update on the developments at the Company’s flagship Amapá Iron Ore Project in Brazil, with updates also provided on its other investments. KDNC said as it remains on schedule to secure the installation licences by the end of this year, it is seeing expressions of interest from potential partners to invest into the project equity finance element. Once completed, the recommissioned Amapá mine can restart production.

Comment: The key for KDNC will be the project finance for Amapá, something which should be in the bag once there is line of sight on the installation licences. Ideally, the run up to this will be kinder to the share price than the market has been thus far.

Tirupati Graphite (TGR), the specialist flake graphite company and supplier of the critical mineral for the global energy transition, announces that, as part of an ongoing process to freshen and strengthen its Board of Directors, Ms Puruvi Poddar and Mr Alastair Bath will join the Board in executive roles. The establishment of an advisory board of which Mr Murat Erden will be the inaugural member. TGR said the renewed Board is enthusiastic about delivering the objectives and vision of the Company and will work to further build the Board structure and improve governance structures initially through the intention to add two Non-executive and independent Directors, and a CFO preferably London based.

Comment: TGR is right to go for a fresh board and approach to a company which has a lot of moving parts, and occupies a volatile sector. The advisory board is a constructive move.

Zinnwald Lithium (ZNWD), the European focused lithium company, provided an operational update on recent activities. ZNWD said as evidenced by its recently published updated MRE for the Zinnwald Lithium Project, which confirmed a 445% increase in tonnes and a 243% increase in contained lithium, the Project’s strategic value within the EU is clear. This substantial expansion, driven by extensive drilling, positions it as a key player in the region’s lithium market and will, it hopes, see its project classified as a Strategic project within the EU.

Comment: After being in an almost straight decline from May last year, shares of ZWND finally turned around last month, and this process should continue as it reminds us of the big MRE increase.

BSF (BSFA), the Main Market listed biotech, said it is now working with the UK’s leading cultivated meat production company, Ivy Farm Technologies Limited (Ivy Farm) to help fundraise, launch and scale its cultivated meat plans in China. BSF said today’s announcement represents the start of a strong commercial and technical working relationship between BSF Enterprise and Ivy Farm. The cultivated meat market is front and centre for China in its blueprint for food security as part of its five-year agricultural plan.

Comment: It is rather disappointing that BSF has rather lost the stock market momentum it had last spring, when the cultivated meat concept entranced the market. Perhaps the China news today will be the trigger for some fresh excitement.

Strategic Minerals (SML), a profitable producing mineral company, announced that the February sales tonnage recorded at Cobre was a 6-year high for February sales and Southern Minerals Group LLC , the Company’s wholly owned subsidiary and operator of the Cobre magnetite stockpile, is acquiring a Caterpillar Excavator (Trackhoe 320) to assist with expected volume increases. SML said encouraging sales in February 2024 and expectations of returning to quarterly sales of circa 13,000 tons are providing a robust cash flow outlook for the end of 2024, after resolving creditor payments arising from 2023.

Comment: Shares of SML tripled during January – February, and today’s update underlines why in the form of the 6 year high for the sales tonnage. It does appear that the stock will be able to resume the big turnaround.

Serica Energy  (SQZ), a British independent upstream oil and gas company with operations in the UK North Sea, today announces its estimated oil and gas reserves at 31 December 2023 and an update on production during January and February 2024. SQZ said production in the early part of 2024 has been encouraging and it looks forward to the future impact of executing its investment programme this year. It is on track to commence the planned well intervention and drilling activities on the Bruce and Triton assets during the coming month.

Comment: Shares of SQZ are currently less than half of their summer 2022 peak and there seems to be little getting in the way of the negative momentum. It would appear that there will have to be a significant amount of fresh investment, and production to turn the stock around.