Poolbeg Pharma (POLB), a biopharmaceutical company, said it has received the fully granted patent from the US Patent Office for its Immunomodulator II patent application. POLB said the grant received from the US Patent Office highlights the strong progress it continues to make in developing and strengthening its patent portfolio for POLB 001, across multiple disease indications. This further enhances the value and attractiveness of POLB 001 for potential partners.
Comment: Beefing up one’s IP is key for companies like POLB. This will not just be important to potential partners, but one day in the not so distant future, potential bidders.
Fulcrum Metals (FMET), a company focused on mineral exploration and development in Canada, announced final results for the year ended 31 December 2023. FMET said that whilst recognition of Fulcrum on the market has been frustrating, it was delighted with its operational and exploration achievements. It believes that a key differentiator for Fulcrum is the development of a tailings business through key acquisition agreements in Kirkland Lake which, essentially, creates a tailings hub with an estimated 200,000 ounces of gold.
Comment: If nothing else, the market has missed the benefits of the tailings business to FMET, something which in terms of the potential revenues sets the company apart from its exploration only peers.
Concurrent Technology (CNC) report finals to December with EBITDA of £6m compared to £2.1m as revenue in from mission critical, high performance and rugged computer products and systems sold mainly to the military and defence shot up 73% to £31.7m. The net cash of £11.2m will allow the resumption of a dividend with 1p. Investment has been made in people with a 17.8% increased headcount, in R&D, sales and marketing with a strategic investment in the Systems divisions, including the acquisition of Phillips Aerospace. New products have been launched and a US contracted has been recently announced. The PBT of £3.7m gives EPS of 4.98p a P/E of 20x which seems fair value.
Comment: At 99.5p with an £85m mkt cap the shares have had a remarkable run since the placing at 65p in August 2023 although some of the growth seems priced in there could be medium trim value.
Cornish Metals Inc. (CUSN), reported a positive independent Preliminary Economic Assessment for its 100% owned and permitted South Crofty tin project located in Cornwall, United Kingdom. CUSN said that the PEA results are compelling with a post-tax NPV8% of $201 million and IRR of about 30% at a tin price of US$31,000. This represents a strong foundation for further evaluation of the Project, enabling the Company to move forward with additional preparation work and progress towards a construction decision, with planned first tin production in 2027.
Comment: It looks as though those thinking CUSN gave the impression of being a subscale tin project developer have been proven wrong, something which will hopefully be revealed in the share price reaction to today’s update.
United Oil & Gas (UOG), the oil and gas company with a high impact exploration asset in Jamaica and a development asset in the UK, announced that is has appointed Shard Capital Limited, with immediate effect, as joint broker with the aim of broadening investor interest and providing additional research coverage.
Comment: Broadening investor interest is a tough gig even at the best of times. But perhaps with UOG at current share price levels, and after so much water under the bridge, some punters may feel they have a valid entry point.
UK Oil & Gas (UKOG) announced that it has appointed UK based oil and gas divestment and project marketing specialists, Envoi Limited to facilitate the farmout of up to a 50% working interest in the Company’s material 100% owned Loxley gas and hydrogen feedstock project. UKOG said the farmout process is designed to fully fund the Loxley appraisal programme and, if successful, remove the requirement for the Company to raise additional funds for its share of costs for this material project.
Comment: Judging by the share price and the sentiment towards the company of late, it would appear that there is a lot riding on a farmout of Loxley. Hopefully, this is not too little, too late.
EARNZ (EARN), an AIM Rule 15 cash shell which is seeking acquisitions in the energy services sector, is pleased to announce the appointment with immediate effect of Linda Main as senior independent Non-Executive Director. EARN said Linda adds significant strength and rigour to the board and her appointment demonstrates our commitment to building a successful business with a wide range of talents on the Board. Linda will add additional expertise to assist the Company to complete acquisitions in the energy services sector and it looks forward to working with her.
Comment: While we await the first deal making at Bob Holt’s new vehicle, it can be seen that he is beefing up the board, in an appropriate way given the energy services sector remit.
Sovereign Metals (SVML) announced that following the appointment of graphite specialist Dr Surinder Ghag as Chief Technology Officer – Graphite, the Company will be increasing graphite pre-concentrate sample preparation from its existing testing facility in Lilongwe, Malawi. SVML said that the intellectual property that Dr Ghag and Mr Marcos bring to Sovereign has meant that it can expand and expedite its graphite commercialisation strategy significantly.
Comment: It can be seen from the flow of recent RNSs that SVML is very keen on graphite, and is bringing in those personnel to kickstart its moves regarding commercialisation.
Touchstone (TXP) and Trinity (TRIN) announced that they have reached agreement on the terms of a recommended all share offer pursuant to which Touchstone will acquire the entire issued and to be issued ordinary share capital of Trinity. Based upon Touchstone’s closing share price of 41.25 pence as of 30 April 2024 (being the last practicable date prior to this announcement) the Acquisition represents an implied value of 61.9 pence per Trinity.
Comment: Finally we have an “old school” example of M&A, with two relatively small companies getting together, and with a decent premium. This is one of the signs the bear market may finally be over.
Yesterday, African Pioneer (AFP), the exploration and resource development company with advanced projects in Namibia, Botswana, and Zambia, reported its full year results for the year ended 31 December 2023. AFP said it considers the four Zambian licences held with First Quantum are ideally placed in a much sought-after exploration region and are optimistic for future exploration. As a result of its general exploration work in Zambia, it has elected to prioritize Zambia as its key exploration destination and to this end is pursuing a number of licence acquisitions to complement its existing licences.
Comment: Obviously the market is not factoring the First Quantum factor either in terms of the validation it gives to the company, or the read across to the significance of the assets. However, the drip-drip of further acquisitions in Zambia could yet move the dial as far as the share price of AFP.
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