25/05/2023

Pires Investments (PIRI), the investment company focused on next generation technology including AI, updated in relation to its investment portfolio. PIRI said overall, its investment portfolio continues to make good progress. In particular, its investee companies have been able to successfully access new capital notwithstanding challenging market conditions. At the same time, liquidity events have been achieved as evidenced by Smarttech247’s recent IPO, against the background of difficult market conditions for new listings. This is clearly a function of the quality of our investments and acts as a further demonstration of the progress that has been made in terms of creating value for investors.

Comment: Pires continues to be on the zeitgeist of tech, this time with its exposure to the red hot area of AI. But the company also has taken advantage of existing strong, cash generative business, as demonstrated by the liquidity event at Smarttech247.

Drumz (DRUM) announced its final results for the year ended 31 December 2022. The company said that during the year, Acuity’s performance continued to improve based on all KPI measurements; and Drumz directors decided that the opportunity offered by Acuity merited acquisition of all the outstanding Acuity shares to enable focus on the continuing development of the business for the benefit of Drumz shareholders.

Comment: Followers of Drumz will be aware that the big story here is about the company’s jewel in the crown, Acuity, of which it has managed to acquire 100%. It can be seen from hockey stick jump in the sales pipeline and contract renewals over 90% that Acuity will be transformational for Drumz.

Fulcrum Metals (FMET), a company focused on mineral exploration and development in Canada,  updated on its exploration activities at its Schreiber-Hemlo project in Ontario. The company said this is an exciting phase of work as it progresses towards drilling later this year which builds on the positive work completed at Big Bear so far. It looks forward to updating the market in due course not only on this phase of work but also as it commences groundworks across the exciting portfolio of assets held by the company.

Comment: One would expect significant progress from Fulcrum over the summer period, and in the run up to drilling later this year. One would expect the market to cotton on to the merits of this work, given the strength of the portfolio.

Zinc Media Group (ZIN), the television, brand and audio production group, announced a trading update. The company said that since the trading update on 26 April 2023, the group has continued to perform very well winning an additional £3m of new business which is expected to be recognised in the current financial year.  As a result, total revenue won and due to be recognised in FY23 is now £29m (26 May 2022: £17m).

Comment: Shares of Zinc have risen some 30% so far this month, off the back of the company’s latest revenue jump, arguably into the big league. It does look as though 2023 will be its year.

Actual Experience plc (ACT), the analytics-as-a-service company, announced that the UK Central Government contract that was announced on 21 March 2023 relates to an extension of the company’s relationship with the Defra in partnership with Vodafone. ACT said it is in an incredibly fast-moving era of transformation where C-suite leaders are facing unrelenting pressure to manage productivity and head off a talent crisis and to ensure that the disconnect between employee expectations and employer commitment is not damaging to long term business performance.

Comment: It is interesting that the stock market is of course not only no longer forward looking, but does not give companies who are on the UK Government gravy train the credit they deserve. Such contracts are notoriously difficult to obtain.

Phoenix Copper (PXC), the USA-focused base and precious metals emerging producer and exploration company, announced its audited results for the year ended 31 December 2022. The company said it intends to fund first production at the Empire open pit with minimum additional dilution to shareholders. With that in mind, it is in the process of completing an $80 million corporate copper bond issue, which will pay a floating rate linked to the higher of a copper price coupon or an interest rate coupon, but subject to a minimum coupon of 8.5% per annum.

Comment: Shareholders of PXC have presumably been sitting on the edge of their seats waiting on news regarding the $80m corporate copper bond issue. The key here is the phrase “minimal dilution, something which if achieved would be quite a coup.

ANGLE (AGL), a liquid biopsy company, announced that its first bespoke assay development customer, Artios Pharma, has signed a new contract to utilise two DNA Damage Response assays developed by ANGLE in a Phase 1 clinical trial expected to commence shortly. AGL said it is  delighted to have successfully developed these high-performance assays for Artios, a leader in the fast-growing field of DDR therapeutics. This new contract for clinical trial services again represents significant repeat business from an existing customer and we believe there is potential to expand the relationship further. These new assays also provide an important addition to our pharma services menu where its unique solution has already generated a high level of interest from new potential customers.

Comment: Hands up all those who know what a DNA Damage Response assay is? Given the recent share price performance of ANGLE, one would hope that there are some in the market who appreciate what this means.

Panthera Resources (PAT), with assets in West Africa and India, announce the completion of phase two of its approximately 10,000 metre drilling program on the Cascades Project and has since received full analytical results from its joint venture partner, DFR Gold Inc (DFR), as originally announced by the Company on 2 May 2023. The company said these very positive results from this drilling programme are highly encouraging, as they confirm the search models being applied in the further testing of the extensive mineralised shear corridor at the Cascades Project.

Comment: Shares of PAT have been attempting to stage a recovery in recent months, but it can be seen from the daily chart that there are perhaps one or two pesky sellers in the mix. Today’s news may however give some cause for the bulls to take charge.