Ananda Developments (AQSE: ANA), a company focused on becoming a leading provider of CBD-based medicines for chronic inflammatory pain conditions, recently presented to life science industry leaders at the 10th LSX World Congress in London. ANA said CBD is a multi-modal molecule and shows great potential for treating people with chronic indications at a time when the NHS is overwhelmed and we have many people unable to go to work. We believe our drug development is happening just at the right time. The presentation has been uploaded on Ananda’s website and can be found via the following link: https://investors.anandadevelopments.com/activity-updates
Comment: With the demise of the late Oxford Cannabinoid, ANA is THE listed play in its space, and the grown up choice for investors, something its presentation at the World Congress underlines.
CleanTech Lithium (CTL) an exploration and development company advancing sustainable lithium projects in Chile, announces highly encouraging results from the processing of brine from Laguna Verde at the Company´s Direct Lithium Extraction (DLE) pilot plant in Copiapó, Chile. CTL said analysis of the eluate shows the DLE performance has exceeded its expectations, concentrating the lithium grade of the feed brine by 3.6X while achieving high recovery rates and low impurities. The first full batch of 24m3 of concentrated eluate is scheduled to be shipped in the coming weeks.
Comment: CTL is doing what it said it would do, and arguably better, in terms of the results revealed today. One would expect the re-rate in the shares from ridiculously low levels to continue apace. All the negatives are in the price, and are history.
Asiamet Resources (ARS) reported positive results flowing from recent optimisation work completed for the BKM heap leach project in Central Kalimantan, Indonesia. ARS said the full impact of this optimisation work in terms of construction schedule and capital cost will flow through from the detailed design and engineering currently underway for BKM. This coincides with the appointment of Rexline Engineering and BGRIMM Technologies for engineering design work and ultimately revisions to the capital cost estimate for the BKM Project.
Comment: With copper at a 10 year high, even Coco The Clown would be aware that ARS is in the box seat amongst junior London mining plays. One would expect the ongoing re-rate here to get a boost of the back of the capex savings revealed today.
Newmark Security (NWT) update on trading for the year ended 30 April 2024 and expects to report revenues 10% higher at more than £22m. It provides physical and electronic security systems with an increasing emphasis on technology. The increase reflects a combination of cross-selling to existing customers and new blue-chip customer wins. The Access Control’s guarding division’s, new cost-effective retail attack-resistant screen is being fitted by a major supermarket chain, it also rolled out five new ballistic protection systems for a new money exchange client, with a further planned with banking, retail, utilities, and public sector verticals. Cash improved to £1.1m due to an improvement in operating cashflows driven by higher revenues and increased margin percentage, particularly in the second half of the year. The trading momentum at seems set to continue with new clients won including the higher margin electronic systems. Assuming an April 2024 PBT of £0.8m, the after-tax EPS would be around 8p and a prospective P/E of 12.5x.
Comment: At 100p with a mkt cap of £9.7m the shares seem good value.
EnSilica (ENSI), a chip maker, provided a pre-close trading update for the year ended 31 May 2024. The Board said it expects to report record revenues of approximately £25 million for the year ended 31 May 2024 (2023 £20.5 million) and profit after tax of approximately £1.9 million (2023: £1.8 million). EBITDA for the year is expected to be approximately £1.8 million (2023: £1.6 million). ENSI said it was confident of delivering revenues in excess of £30 million and EBITDA in excess of £5.0 million for FY25.
Comment: Although not quite in the Nvidia league yet, ENSI is on its way to being a serious UK chip play, and one would expect the market to rate it accordingly from now.
Capital Metals (CMET), a mineral sands company, provided an update on the status of the co-exclusivity period for either Sheffield Resources Limited (ASX: SFX) or LB Group to acquire up to a 50% interest in the Project in consideration for contributing development capital by way of joint venture project equity. CMET said it was delighted to be moving ahead with Sheffield and expect to conclude a funding deal that would make them a 50% partner in one of the world’s highest grade mineral sands deposits. Sheffield is already its largest shareholder following its investment in March 2024 and would represent a well-respected and experienced mineral sands group as a partner.
Comment: CMET has already been de-risking itself courtesy of Sheffield, and today’s news takes this process further, underlining the merits of having a major mineral sands asset at the strongest part of the cycle.
Touchstone Exploration Inc. (TXP) reported its financial and operating results for the three months ended March 31, 2024 and provides an operational update. TXP said it was pleased to announce positive first quarter 2024 results during what has been a very busy time for the Company. Since coming onstream in September 2023, the Cascadura field has transformed Touchstone both operationally and financially, having contributed an estimated $20 million in operating netbacks, ahead of tying in the two further successfully drilled development wells from the surface location. Initial decline rates on its two producing Cascadura wells have been steeper than we first expected but we are learning more about the reservoir for further exploitation. It is maintaining its full year guidance given production increases are heavily weighted towards the fourth quarter of 2024.
Comment: Clearly the market is somewhat concerned at those pesky decline rates, with the shares breaking to the downside below 40p, something which given TXP’s maintained guidance appears rather harsh.
Celadon Pharmaceuticals (CEL), a UK-based pharmaceutical company focused on the development, production and sale of breakthrough cannabis-based medicines, announced its audited final results for the year ended 31 December 2023. Revenue of £75k (FY22: £24k). Operating loss of £5,931k (FY22: loss of £5,381k). Loss before tax of £7,523k (FY22: loss of £18,118k). Cash at 31 December 2023 of £1,259k (FY22: £5,061k). CEL said 2023 was another year of strong strategic progress for Celadon. The Group received its full set of regulatory licences, making it the first UK company to obtain these approvals since the law changed in 2018. Following the update of our Home Office licence, we signed sales contracts worth up to £10 million in annual revenue, and have since begun supplying product to its first two customers.
Comment: CEL may have reached the Promised Land of revenues, but it can be seen historically that getting there has not been a cheap process. It will need the big 8 figure contracts and then sum going forward.
Prospex Energy (PXEN), the AIM quoted investment company, announced its audited Final Results for the year ended 31 December 2023. PXEN said all remaining interest-bearing debt outstanding plus accrued interest, was repaid by 31 March 2024. No further debt or equity raises have occurred between the reporting date and the date of this report. The Company is debt free, cash generative and well positioned for growth.
Comment: While PXEN’s fans are willing the share price up, given its strong fundamental position, at least for now the market seems unduly obsessed by the underlying commodity prices, rather than the strong cash generation.
Kavango Resources (KAV), the Southern Africa focussed metals exploration company, announced that it is has placed a drill contract for the first phase of stratigraphic drilling on the Kalahari Copper Belt (KCB) Karakubis Project. KAV said this is Kavango’s best prepared and most important drill campaign. It is pursuing large-scale copper targets in the Kalahari Copper Belt. Its primary objective is to prove a copper mineralising system exists in its Karakubis licences. If it is successful, this will be transformational for its business.
Comment: While the aftermath of today’s news could indeed be transformational, the share price valuation of the company has already signalled that KAV, and its strong cash position is poised for success.
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