26/05/2023

Wishbone Gold (WSBN), updated on programmes since the release on 27 April 2023 which highlighted significant potential in reprocessed historic drill and exploration data at Cottesloe. The company said historic drill and exploration data it released last month sits mostly outside and peripheral to the new MobileMT anomalies thus this further increases the prospectivity of this precious and base metal project. The next work programme will refine drill targets and the requisite heritage surveys. This forms the basis for an exciting 2023 field season.

Comment: We see with Wishbone that the company is boldly going on with its programmes, despite one of the more puzzling share price performances around, especially given the strength of gold.

Tekcapital (TEK), the UK IP investment group, announced its audited results for the year ended 31 December 2022. The company said it has made good progress during 2022. Its portfolio companies have demonstrated solid growth and it believes they should achieve additional significant milestones by the end of 2023. Its financial results were negatively impacted by the reduction in the observable, closing share prices of both innovative Eyewear and Belluscura at the end of the period, which it believes were in large measure the result of exogenous macro-economic and capital market factors. These were partially offset by the approximate doubling of the share value of MicroSalt.

Comment: It is clear that the market has indeed been rather harsh on Tekcapital’s multifarious investments. But one would imagine that they could just as easily flip to the positive given the strong track record of developing and executive IP.

Echo Energy (ECHO), the Latin American focused energy company, announced that, further to the Heads of Terms announced on 9 May 2023, the company has now signed binding transaction documents, subject to shareholder approval, on broadly the terms outlined in the Heads of Terms. The company said it was delighted that it has progressed from the Head of Terms agreed recently to the signature of binding transaction documents. The transaction’s strategic importance to Echo is reinforced by the new gas contract it also announced today, through which the resulting new investment by the purchasers in the Santa Cruz Sur assets will secure exciting additional commercial upside for Echo.

Comment: It may or may not be the case that the prospect of “additional exciting commercial upside” is something that causes the extended bear run for the shares to reverse. But at least it can be seen that Echo is striving to get itself on the front foot fundamentally again.

Amaroq Minerals (AMRQ), an independent mine development company, presented its Q1 2023 Financial Results and outline its current workplan for 2023. The company said it enters the second quarter of the year very well-funded, and with a busy programme of exploration to add incremental resource and to bring Nalunaq onstream on time and on budget such that it can meet trial mining in 2024.  At the same time, its plans for a main market listing in Iceland move forward.

Comment: Amoroq continues to be underappreciated not only in terms of the scale of its Greenland portfolio, but also given the way that the market does not understand the positive implications of what a main market listing in Iceland will bring.

Polarean Imaging (POLX), the medical imaging company, announced its audited final results for the year ended 31 December 2022. The company said it ended the year with a tremendous positive in receiving its FDA approval for XENOVIEW. This was a long road culminating with the decision it was looking for, and an extraordinary amount of work went into this process from the entire team. It has now begun to roll out XENOVIEW for clinical use and expects to see further hospitals adopt doing clinical XENOVIEW scans in the coming months.

Comment: It might be argued that from POLX’s perspective the market has treated its share price rather harshly, given that it managed to get FDA approval, and the prospects of ongoing hospitals rollout over the near term.

Touchstone Exploration (TXP) announced that Touchstone Exploration (Trinidad) Ltd., its wholly owned Trinidadian subsidiary, has entered into a second amended and restated loan agreement with its Trinidad based lender providing for an additional $7 million revolving loan. The company said it intends to use the revolving loan proceeds to maintain financial flexibility while it proceeds with Royston-1X production testing operations and Cascadura facility construction where it continues to target for first production on or around June 30, 2023.

Comment: It looks as though we have a well timed, and strategically handy financing for TXP, to fill the gap between now and first production at the end of next month.

Prospex Energy (PXEN), the AIM quoted investment company, announced its audited Final Results for the year ended 31 December 2022. Total Assets were of £16,064,640 from £6,697,305 in 2021, an increase of 240% reflecting the after-tax effect of the revaluation of the Company’s working interest in the Podere Gallina licence in Italy increasing to 37% from 17% which completed in April 2022. The company said it was pleased with these strong results that have laid the foundation for Prospex to progress to the next level, with increased gas production imminent from the Selva field in Italy.  It is continuously looking for ways to improve its current investments and it has made advancements at our Spanish plant with Project Helios which would increase output from the plant by up to 60%.  With the completion of the project expected to take less than 12 months, it is an exciting time in Prospex’s history.

Comment: While one might say that the rally to 20p in February was over-exuberance, given the outlook and the prospect of a significant output jump, it still seems that shares of PXEN should not be on the wrong side of 10p.

Chamberlin (CMH), the specialist castings and engineering group, announced that it has conditionally raised approximately £330,000, pursuant to a placing of 11,000,000 shares at 3p with certain existing institutional and other investors. Trevor Brown, Executive Director, has also conditionally subscribed for 1,000,000 shares. The company said the net proceeds from the Fundraising will provide working capital to take advantage of potential new opportunities which have recently arisen as a result of a competitor of Russell Ductile Castings Limited going into administration, support the continued delivery of the Group’s growth strategy and strengthen the Group’s balance sheet.

Comment: It is good to see our Trevor dipping into his, presumably very deep pockets, on the latest fundraising, which it would appear that RDC is a valid / worthy alibi for. Ideally, this is the last cash call for a long time.