Mendell Helium (AQSE:MDH) provided an overview of M3 Helium Corp.’s assets following a visit in October 2024 by Nick Tulloch, Chief Executive Officer of the Company, to Kansas, USA. MDH said since entering into the option to acquire M3 Helium, it has worked hard to develop the company’s asset base and, as shown in recent announcements and today’s update, the results have significantly exceeded its expectations. Alongside the farm in with Scout Energy, which provides an immediate and cost-effective path to scale the M3 Helium business, the exceptional performance of the flagship Rost well could potentially become a significant contributor to M3 Helium’s cashflow in the coming months.
Comment: As stated in my recent interview with the company, the question here is how much the market is prepared to value a helium company which is actually producing helium? So far the answer is, less than its peers. One would expect this state of affairs to change in MDH’s favour soon.
UK Government Investments Limited announced the completion of the disposal of part of His Majesty’s Treasury’s shareholding in NatWest Group plc. The total consideration for the Off-Market Purchase will be £1 billion. As a result of the Off-Market Purchase, HM Treasury’s percentage of voting rights in the Company will fall from approximately 14.2% to approximately 11.4%1, following cancellation by the Company of all of the purchased Shares.
Comment: The UK is clearly not quite in the league of the Norwegian Sovereign Wealth Fund, and it is answers on a postcard on how much the taxpayer is still down on the whole 2008 banking crisis disaster. But with shares of NatWest up 73% so far this year, just for a change, we the working people are selling at the top and filling at least a little part of that black hole.
Altona Rare Earths (REE) – TR1: Notification of Major Holdings. R S & C A Jennings & related party Catalyse Capital Ltd up from 8.83% to 9.47%.
Comment: A little stakebuilding from Jennings and friends into REE, something which seems justified after last week’s comments from the company: “The potential rapid development of fluorspar production from the Fluorite Zone at Monte Muambe represents an excellent opportunity to monetise an additional part of our investment in this asset. If successful, it would create a cash inflow for the Company.”
Caledonia Mining Corporation (CMCL) announced its operating and financial results for the quarter and the nine months ended September 30, 2024. Gross profit in the Quarter of $19.3 million increased from $14.1 million in the third quarter of 2023 due to the higher gold price and lower costs of the Bilboes oxide mine. CMCL said it was pleased to report that production for the Quarter was in line with expectations and it remains on track to meet its production guidance for the year.
Comment: The current environment should be like falling off a log for a company in CMCL’s position, and by and large it has been. The question is of course, how long the good times can last?
GreenX Metals (GRX) updated on the international arbitration claims (Claim) against the Republic of Poland. On 7 October 2024, GreenX was awarded £252 million. GreenX noted that the Polish Prime Minister, Mr Donald Tusk, recently stated at a press conference that: “The case is rather hopeless, because a lost arbitration is a lost arbitration. We have two big cases on our shoulders. The PiS government blew this issue.”
Comment: Most of us would perhaps be rather miffed by the London market’s blink and you missed it reaction to GRX and its £252m. However, this leaves those less cynical with an opportunity at 40p and a£108m to chew on.
Pantheon Resources (PANR), an oil and gas company developing the Kodiak and Ahpun oil fields in close proximity to pipeline and transportation infrastructure on Alaska’s North Slope, announced the spudding of the Megrez-1 well to explore the eastern topsets in the Ahpun field, immediately adjacent to pipeline and road infrastructure. PANR said success at Megrez-1 will expand the understanding of Ahpun oil and gas accumulations and dramatically impact the economics of the Ahpun full field development. There are few, if any, onshore wells targeting what it estimates to be more than 1 billion boe (barrels of oil equivalent) of 2U Prospective Resource anywhere in the world during this year.
Comment: PANR has been mentioning billions of barrels more often than Lenigas did with The Gatwick Gusher. At least in this case, and in the wake of today’s news, we seem to be getting closer to this scenario.
Hummingbird Resources (HUM) announced the Company’s senior management team will be holding an investor presentation on 13 November 2024 at 09:00 GMT. The event will cover the Company’s recent news releases regarding the Q3-2024 Operational and Trading Update and Proposed Debt Restructuring and Statement Regarding Possible Offer and provide an opportunity for Q&A. The Company invites attendees to pre-send questions to the Company via IR@hummingbirdresources.co.uk by 17:00 GMT on Monday 11 November 2024. Webcast link: https://www.investormeetcompany.com/hummingbird-resources-plc/register-investor
Comment: This is one of those situations where one would love to be a fly on the wall at management meetings. In this case the next best thing will be the forthcoming HUM investor presentation, after all the excitement of the recent past.
Ariana Resources (AAU), the AIM-listed mineral exploration and development company with gold project interests in Africa and Europe, announced that it has entered into a Strategic Project Financing Agreement with an Institutional Investor for the provision of an aggregate loan of up to US$5,000,000, of which an initial US$2,000,000 has been advanced to Ariana. Financing agreement with the Investor provides an initial advance (the “Initial Drawdown”) of the Loan of US$2,000,000 to Ariana, to enable the immediate commencement of work towards the Dokwe Feasibility Study.
Comment: It is ironic that companies on the public markets are now leading heavily on private cash to take them over the line. At least in the case of AAU, this cash has arrived at an opportune time.
Thor Explorations (THX) provided an operational and financial review for its Segilola Gold mine, located in Nigeria, and for the Company’s mineral exploration properties located in Nigeria, Senegal and Cote D’Ivoire for the three months to September 30, 2024. 18,167 ounces of gold sold with an average gold price of US$2,328 per oz. Cash operating cost of US$585 per oz sold and all-in sustaining cost of US$766 per oz sold. Revenue of US$40.2 million (Q3 2023: US$36.6 million). EBITDA of US$27.4 million (Q3 2023: US$10.5 million). Net profit of US$17.5 million (Q3 2023: US$0.9 million). Senior debt facility reduced to US$3.9 million as at September 30, 2024.
Comment: Such excellent metrics from THX, as one would expect in the current environment, which apart from comments here (the Daily Mail effect was only temporary), the market has not really grasped. This is even with the company’s high grade coterie of service providers.
Arrow Exploration (AXL), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, provided an update on operational activity. AXL said the initial production results from CNB HZ-6 are very encouraging and follow the positive trend of horizontal wells at the CNB pad continuing to surpass expectations. Arrow’s focus for the remainder of 2024 will be the completion of the sixth horizontal well in our program, CNB HZ-7 at Carrizales Norte, after which it will move to drill a low-risk exploration well at the Alberta Llanos prospect.
Comment: Like THX above, AXL is an excellent company which thinks (quite rightly) it is so good that the results / performance speak for themselves. If they did the share price would not be 24p, it would be 50p.
Powerhouse Energy Group (PHE), a company pioneering integrated technology that converts non-recyclable waste into low carbon energy with a revenue generating engineering consulting division (Engsolve), announce that it has been notified by the Japanese Patent Office that the Company’s Japanese Patent 7577260, “Method and Apparatus for the Treatment of Waste Material”, was granted on 8 November 2024. PHE said it was delighted that this patent has been granted. This is the third patent we have been granted and provides significant protection for the technology that differentiates PHE from others in the waste-to-energy sector; whilst also being the first patent granted to us outside of the UK / Europe.
Comment: What PHE has not said, but is obvious, is that after all the waste plastic to hydrogen and various other cul de sacs, the current management is essentially building a new company from scratch, one patent at a time.
Kistos (KIST), an independent energy company focused on generating value across the upstream and midstream markets, announces an investment in Spiralis Energy Ltd, a tidal energy business. As part of Kistos’ commitment to the energy transition and meeting its own sustainability objectives, the Company has identified and invested in Spiralis Energy’s tidal technology, which is at an advanced stage of testing and has the potential to revolutionise the tidal energy industry.
Comment: Presumably this deal was in the works before President Elect Trump. With him around fossil fuel companies may not need to virtue signal with renewable energy.
Dekel Agri-Vision (DKL), the West African agriculture company, provided an October production update for its Ayenouan palm oil project in Côte d’Ivoire as well as a positive progress update regarding the performance of the new shelling and peeling equipment at the cashew processing plant at Tiebissou, Côte d’Ivoire. DKL said higher international CPO prices are starting to flow through to local CPO prices which should become apparent in its November monthly CPO results. Although the CPO low production season has lingered longer than normal, these higher prices should be supportive for the upcoming high season. The Cashew Operation has taken a great step forward over the past month with material improvements in all key KPI’s related to product quantities, quality and sales prices.
Comment: It is clear that the market has still not latched onto the attractions of either palm oil or cashews, especially given the vagaries of weather and production. However, it can be seen that DKL has pushed above its 200 day line for the first time in a year, something which suggests that the share price may have finally turned the corner.
Hemogenyx Pharmaceuticals (HEMO), the biopharmaceutical group focused on developing new therapies for blood diseases, announced that it was approached by an institutional investor and that this investor has subscribed £600,000, for the issue of 60,000,000 new Ordinary Shares at 1p per share. The net proceeds of this subscription will be dedicated to the imminent commencement of the Phase I clinical trials for the Company’s Chimeric Antigen Receptor T-cell therapy aimed at treating acute myeloid leukemia.
Comment: Well of course, one could smell that there was a fundraise coming, with the only issue being that the shares were too low in the range. Enter an institutional investor, rather than having to tap private investors again.
Goldstone Resources (GRL) provided an update on the progress of operations in respect of the Homase Mine and heap leach operation in south-western Ghana. GRL said it remains on track to deliver its stated objective of producing 1,000oz pcm from January 2025, with its production profile at Homase improving week on week, and month on month.
Comment: Although not quite in the Centamin league yet, GRL is a pocket sized producer, and given the rocketing price of gold has a chance of gathering enough momentum to deliver a share price revival from current levels.
Ondine Biomedical (OBI), a Canadian life sciences company, announces an update to its Private Placement announced on 24 September 2024 and the Fundraising announced on 1 November 2024. OBI said that the settlement of the Private Placement with a Canadian private investor has been delayed due to their unavoidable personal circumstances and will require additional time to complete. In light of this, settlement of the Fundraising scheduled for Nov 11 will also be delayed coinciding with the Private Placement settlement. Further updates will be provided in due course.
Comment: While there has been a slight delay to the latest funding, it is clear that OBI has ensured that it is fully funded to roll out Steriwave, and that the moment for this treatment is building well.
The boards of SIX and Aquis (AQX) announced that they have reached agreement on the terms of a recommended cash offer for the entire issued and to be issued ordinary share capital of Aquis. Under the terms of the Offer, each Aquis Shareholder will be entitled to receive: For each Aquis Share: 727 pence in cash.
Comment: It is great to see Aquis deliver a liquidity moment for itself. The old adage of it being best to invest in those who provide the picks and shovels for the gold rush, rather than the prospectors themselves seems to have won again.
Critical Metals (CRTM), the developer and operator of the Molulu Copper/Cobalt Project in the Democratic Republic of Congo, updated with regards to the investments and loans made to the Company along with an operational update. CRTM said that on 10 November 2024, the Company reached an agreement with the Lender to reschedule its payments under its current Facility. The Lender has now agreed to defer payments totalling US$645,651 (including accrued interest) until 20 December 2024. The Company has a right to gain a further extension until 31 January 2025 through the payment of $75,000 towards the outstanding principal before 20 December 2024. JORC reports will be re-looked at when financing is available.
Comment: It is clearly all about the financing situation for CRTM, with the company’s work in this respect ongoing behind the scenes.
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