Rolls-Royce Holdings (RR.) announced its trading update to 31 October 2024. The company said its current trading is in line with its expectations and the Full Year 2024 guidance provided on 1 August 2024 of underlying operating profit between £2.1bn and £2.3bn and free cash flow between £2.1bn and £2.2bn remains unchanged. It continues to strengthen its balance sheet. This has been recognised by the ratings agencies, all of which now hold it at an investment grade rating, and all with a positive outlook.
Comment: Clearly in the current environment Rolls Royce is falling off a log. However, it may be that some of the as yet unknown side effects of a Trump administration may cause some of the shine to come off the company’s fundamentals.
Greatland Gold (GGP) provide an update on recent exploration activities in the Paterson region. Drilling at Chilly assay results: Pathfinder mineralisation intersected at Chilly prospect with a peak of 37m @ 0.21 g/t Au and 0.13% Cu from 136m, including 1m @ 6.1 g/t Au and 0.24% Cu from 137m in first pass reconnaissance drilling. GGP said completion of its transformational acquisition of Havieron and Telfer is targeted for this December quarter, and ownership of the Telfer infrastructure greatly enhances the value of exploration success in its Paterson portfolio. Greatland will emerge from the acquisition with interests in up to approximately 4,500 square kilometres of tenure in the Paterson, providing significant option value within its exploration portfolio.
Comment: After all the pizzaz associated with its big acquisition, there is everything to play for to ensure that the market believes in GGP’s El Dorado. Today’s assay results needed to knock the ball out of the park, given the backdrop.
Yesterday Hummingbird (HUM) provided an update regarding ongoing discussions with its primary lenders, Coris and CIG SA, and the Company’s largest shareholder Nioko Resources Corporation, in relation to the Company’s liquidity position, a proposed debt restructuring, a partial debt-to-equity conversion and a possible offer for all of the shares issued and to be issued in the Company not owned by Nioko.
Comment: The market has clearly been somewhat blindsided by the latest events at HUM, with debt for equity conversion rather eclipsing the 2.6p possible offer for the company.
Jubilee (JLP), a diversified metals producer with operations in South Africa and Zambia, published its unaudited operational and project update for the quarter ended 30 September 2024 (Q1 FY2025), setting a strong foundation for meeting announced performance targets for the year and the continued success into FY2025. JLP said it was pleased to report significant progress in the first quarter of FY2025, where it has successfully achieved key milestones in advancing its copper strategy, while its chrome and PGM operations continue to perform strongly.
Comment: JLP shares have retreated since the spring, even though the newsflow such as today is flagging a solid performance currently, and an improving one to come over the near term. Ideally, operational issues are behind the company now.
Bezant Resources (BZT) announced it has commenced a drill programme on the Hope & Gorob deposit located in Namibia in which Bezant holds a 70% interest. BZT said following the issuing of the Mining Licence and ahead of completion of other statutory requirements, it is advancing all the underlying matters required to bring a mine into production and it is taking the opportunity to closely define the start point for the initial pit entry onto the Hope deposit. The objective is to maximise early cash flow as much as possible by predicting ground conditions and associated factors that might impact on mining and the optimisation and modulation of the various ore sorting technologies that will be applied.
Comment: Despite improving newsflow from BZT, the share price needs to conquering the 0.04p zone once and for all. Presumably further advances at Hope & Gorob could do the trick in this respect.
Arc Minerals (ARCM), an exploration company forging partnerships to discover and develop Tier 1 copper deposits, provided an update on exploration activities at its Joint Venture with a subsidiary of Anglo American in Zambia. ARCM said it was very encouraged by the progress made during the drilling campaign by our JV partner, Anglo American, notably the identification of a new priority target and the fact that drilling is set to continue into the wet season.
Comment: Perhaps rather frustratingly, shares of ARCM seem to have already factored in the merits of today’s update, pulling back from one month highs. There will need to be something special happening near term for the shares to sustain 2p plus.
Afentra (AET), the upstream oil and gas company focused on acquiring production and development assets in Africa provided an operational and financial update for the period 1 January to 31 October 2024. AET said it maintains a solid financial position, with cash resources of $37.4 million and net debt of $4.6 million as of 31 October 2024. The Company’s prudent approach to managing its balance sheet is demonstrated by maintaining a low debt profile, while upcoming crude sales will further bolster liquidity. Afentra executed three liftings in the first three quarters of the year, selling 1.68 million bbls of crude at an average price of $84/bbl.
Comment: AET has the best of the commentators on Fintwit gushing over today’s update, and quite rightly so given the cash position and production outlook. That said, the market since the spring has been less effusive, with the shares down some 25%, presumably as a knee-jerk reaction to the oil price, or more likely happy to look at more speculative plays.
Beximco Pharmaceuticals (BXP), the manufacturer of generic pharmaceutical products and active pharmaceutical ingredients, announced its audited results for the year ended 30 June 2024. BXP said it has again delivered a strong set of results, including double digit revenue growth and a 40% cash dividend for shareholders. Its performance this year underscores the durability of the business despite challenging macroeconomic factors.
Comment: Apart from the share price dip associated with a rather pesky writ petition in September, it would appear that BXP is ticking along quite nicely. Indeed, the dividend is a rare and welcome bonus.
Trainline (TRN) reported Results for the six months ended 31 August 2024 (H1 FY2025). Strong growth in H1 from Europe’s most downloaded rail app. Group net ticket sales up 14% year on year (YoY) 4 to £3.0 billion, and revenue up 17% YoY 4 to £229 million. Adjusted EBITDA up 44% to £82 million; operating profit up 117% to £49 million.
Comment: With a UK service as reliable as a political pollster and at a ticket price that Elon Musk would baulk at, it is of course great to see TRN. This is an example of “don’t get mad, buy the shares.”
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