Cornish Metals (CUSN) notes the recent decline in its share price and confirms it is unaware of any operational or corporate reason for the price movement. CUSN said the Company is unaware of any reason for the selling pressure on the Cornish Metals share price this week. It believes the PEA reported on April 30, 2024 is robust and represents a strong foundation for further evaluation of the South Crofty tin project. South Crofty is fully permitted for mining through to 2071 and has planning permission in place to construct a process plant and other surface facilities on Company owned land adjacent to New Cook’s Kitchen shaft.
Comment: Perhaps timelines taking too long, inadequate communication from the company, and a lack of belief in the quantum of CUSN’s asset may be reasons for the recent share price weakness. Or of course, just the fear / leak of a fundraise.
In its “Catflap” Newsletter, Wildcat (WCAT) said earlier this month WCAT held a series of very successful meetings with the Ministry of Petroleum (MOP) of South Sudan. As reported in its RNS of the 7th of May, WCAT signed a 4-year MOU with the MOP to form a working party in order put into production proven oil assets in the country. In February (2024) the Company passed due diligence and was given clearance to undertake large scale oil production purchases in the country. This was supplemented during the visit with the Petroleum Undersecretary granting WCAT “in country approval” and “preferential” status.
Comment: While a somewhat quirky title for a newsletter, it has to be said that it does remind us that none of the achievements of the company are in the share price, almost as if the market does not believe the company. Ironically, on an historic basis, such situations tend to result in the market getting it wrong – due to undervaluing the company in question by an exaggerated amount.
Hummingbird (HUM) announced the remobilisation of Corica Mining Services at the Kouroussa Gold Mine in Guinea following the suspension of work by Corica on 17 March 2024. The Company also notes that, as part of ongoing efforts to mitigate risk around its working capital position as a result of the recent interruptions, CIG SA, the Company’s largest shareholder, has agreed to provide a US$10 million loan to the Company in order to ensure continuity of operations during this re-ramping up phase of mining operations.
Comment: Given that the market loves to knock HUM shares by 20% on unexpected news that should drop it say 3%, it will be interesting to see how much the shares rebound (squeezing the shorters) on surprise good news with the $10m loan thrown in too. Anything less than 20% would be in line with the bear conspiracy theory on this stock.
Ethernity Networks (ENET), a supplier of networking processing semiconductor technology, announced that it has entered into a structured investment deed with New Technology Capital Group, LLC whereby New Tech will invest a gross amount of £800,000 in the Company. The Fundraise is expected to close, and the Company expects to receive the proceeds, next week.
Comment: In the recent past spikes in the shares of ENET have rallied to the 200 day moving average. Today’s news should be worthy of a spike, and the 200 day line is currently at 1.16p versus the overnight price of 0.75p.
Oracle Power (ORCP), noted that drilling is set to commence next week at the Northern Zone Gold Project, located 25 km east of Kalgoorlie in Western Australia, which is being advanced by its partner, Riversgold Ltd (ASX:RGL). ORCP said it is great that this step-out drilling programme at the Northern Zone Gold Project is drill-ready and two drill rigs have been contracted to commence drilling from mid-next week. It has a very large gold exploration target here, which is centred around a large porphyry gold system that has been proven to be +100m in true width.
Comment: Successful drilling news in the next few weeks could be just what the doctor ordered in terms of stabilising not only ORCP’s share price, but also sentiment towards the company now that the latest fundraise is under its belt.
Fulcrum Metals (FMET), a company focused on mineral exploration and development in Canada, today provides an update on the proposed sale of its uranium projects located in Saskatchewan, Canada to Terra Balcanica Resources Corp. (CNSX: TERA). FMET said that since signing the non-binding LOI, Terra has been fully engaged in working towards the completion of the acquisition of its exciting, highly prospective, uranium portfolio in Saskatchewan, a premier uranium jurisdiction. Certain steps under that process have, unfortunately, taken longer than anticipated, but we are confident that the acquisition will be completed by the extended back stop date of 15 June 2024.
Comment: Given how important having a liquidity event will be to FMET shareholders, they will surely not mind waiting a little longer for what would be transformational news.
XLMedia (XLM) reported finals to December. Having sold off its European Casinos the continuing Sport betting revenue is $50.3m with a $12.1m EBITDA. The figures are distorted by a non-cash impairment charge of $44.6m, but looking through this there are no Loans and Cash Balances of cir. $24.3m as $20m was received in April with a further $10m in six-months. Its online brands have an emphasis on Sports and Gaming which are benefiting US regulation changes. Its expanding in the US, now operating across 21 regulated states which have legalised online sports betting, including North Carolina from March 2024, which is expected to be a material market for sports betting. Its an organic growth strategy is related to the seasonality if the NFT which is in close season. A proportion of the sales proceeds will start being returned to shareholders in q4.
Comment: The shares have doubles since March to 11.75p and a £30.5m mkt cap but the downside seem protected by the cash and the US sports is a big market opportunity
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