Apart from the cost, the red tape, the Kafkaesque rules and the lack of liquidity, having your shares suspended if your accounts are late, is another reason for not being listed on the London stock market. Obviously, it is not the auditor / accountant’s fault, and as they get paid anyway, there are in no hurry to get things done on time. Today’s rollcall of “shame” includes Tungsten West (TUN) and Mothercare (MTC). But let’s not do anything about this and ensure the number of listed companies, and IPOs continue to dwindle, as this is clearly what the powers that be have wanted for years.
Caracal Gold (GCAT), the East African gold producer with over 1,300,000 oz JORC compliant gold resources, is pleased to provide an update on funding. The Company has entered into a US $500,000 Financing Agreement with Koenig Vermoegensverwal MBH. The Company will repay the principal and accrued interest amounting to US $1m on 31 December 2025. GCAT said the ongoing support Koenig Vermoegensverwal mbH is appreciated and it looks forward to announcing the receipt of its first mining license in Tanzania followed by the completion of phase 1 of the transaction with Cynergy. It will now prioritise and complete phase 2 of the Cynergy investment while completing the interim accounts and 2024 audit. With the quality of its assets, the gold price at an all-time high and with it coming towards the end of a very difficult time it looks forward to getting the company back on track to be a 24,000oz per annum producer with 3moz in resource.
Comment: It would appear that accounts / audit notwithstanding, that GCAT is finally near the end of its financial phase, and we have line of sight at production, which given current gold prices, could be very timely indeed.
Orosur Mining (OMI) announced its audited results for the fiscal year ended May 31, 2024. Yesterday the Company announced that it had raised the sum of £835,000 at a price of 2.78 pence. OMI said given the recent signing by the Company of the agreement to acquire MMA in Colombia and the encouraging results in Argentina, the Company will focus its investment in these areas. It will also advance its project in Nigeria, which has returned strong results, albeit at a slower pace whilst lithium prices continue to recover.
Comment: Given the sprawling nature of the business, one wonders how far 800k will take OMI? What can be said is that the company needs to get things going now, especially with relation to the flagship Anza project.
Versarien (VRS), the advanced materials engineering group, announced that the Company has signed an agreement with Balfour Beatty Group Limited to develop a range of low carbon, graphene-infused, 3D-printable mortars suitable for civil construction.
Comment: Thankfully the deal with Balfour Beatty was not blighted by certain parties persistently and psychotically trashing VRS. Hopefully, the great sounding deal could turn the company around after all its travails.
Predator Oil & Gas Holdings (PRD), the Jersey-based Oil and Gas Company with near-term hydrocarbon operations focussed on Morocco and Trinidad announced the completion of an independent report on Helium potential by ScorpionGeoscience Limited. The potential conventional prospective gross recoverable gas resources for the primary reservoir target in MOU-5 were previously reported as being 5.916 TCF (P50 upside case), as announced on 8 August 2024.
Comment: Given that MOU-5 is already lined up to be PRD’s great, new play, today’s helium news amounts to being the icing on the cake. This is especially the case given that helium is currently hotter than July.
i3 Energy (I3E) announced that the North Sea Transition Authority has extended the Second Term of the P2358 Licence for a period of 18 months, so that it will end on 31st March 2026. The Third Term of the Licence is reduced by the same time-period. The area of the Licence has been reduced to encompass the Serenity field only. i3 said it was very pleased that the NSTA has extended the Second Term of the Licence, which will allow the company more time to evaluate development options for the Serenity field.
Comment: The M&A may be out of the way, but i3 continues to remind us what a good company it is, and perhaps how the market should have been more enthusiastic about it, before the recent takeover deal. Nevertheless, given the direction of crude oil, as well as the general modest rating of its sector, it did well to achieve the deal it did.
LifeSafe Holdings (LIFS), a fire safety technology business, announced the appointment of Gregor John Paterson as Non-Executive Director, effective 1 October 2024 and the non-board appointment of Garry Ridge, former CEO of WD-40 Company Inc (NASDAQ: WDFC) as a strategic adviser.
Comment: Beefing up the board, plus getting an industry heavyweight on as a strategic adviser is just what LIFS needs at this point in its cycle. The WD-40 former CEO validation is particularly sweet.
Bradda Head Lithium (BHL), the North America-focused lithium development group, is announced the results from surface samples at the San Domingo pegmatite project in central Arizona. New channel samples at the Midnight Owl target contain high grade intercepts of 8.40 meters of 1.17% Lithium Oxide with 623 ppm Cs (Cesium) and 625 Ta2O5 (Tantalum Pentoxide). A new target, Ruby Soho, was also discovered as part of the Company’s follow-up on anomalous soil samples.
Comment: Given where the shares are, and given market sentiment towards the company currently, even finding El Dorado would have difficulty moving the dial. A re-think may be in order here. Or perhaps someone, anyone, buying the shares.
Greggs (GRG) continued to deliver good LFL sales growth over the third quarter of 2024, with total sales up 10.6% and LFL sales in company-managed shops rising by 5.0% when compared with the same period in 2023, with September the strongest month of the quarter. Year-to-date total sales are up 12.7%, with LFL sales up 6.5%. This growth was supported by menu development and further progress in extended trading hours and new digital channels.
Comment: Given the proximity of the painful budget later this month, it may be many battered taxpayers are drawn to the value that the GRG offering presents, cholesterol issues aside. Indeed, it would appear some have already gravitated towards the attractions of the Steak Bake et al.
Roadside ROAD announcd that it has signed an unconditional share purchase agreement to sell a further 1,000 shares in its subsidiary, Cambridge Sleep Sciences, for £8,500 per share to CGV Ventures 1 Ltd. The consideration of £8.5 million implies a significant increase in value to the Company’s retained shareholding in CSS. The consideration becomes payable at the earlier of 30 November 2024 or on receipt of delivery of CSS’s first production run of Smart Pillows. Roadside intends to use the proceeds from the Transaction to reduce the Company’s debt and a further announcement will be made following receipt of the proceeds of the Transaction. ROAD also confirmed the disposal of its pub subsidiary Barkby Pub Co. Ltd. The Disposal continues Roadside’s stated strategy to refocus the business on roadside real estate assets.
Comment: With ROAD shares already up nearly 3x so far this year, its strategy is clearly being appreciated by the market, not an easy feat currently. The latest disposal adds to the focus of the business.
Cobra (COBR), the mineral exploration and development company advancing a potentially world-class ionic Rare Earth Elements discovery at its Boland Project in South Australia, announced results from bench scale In Situ Recovery trials. COBR said these extremely pleasing results highlight the advantage that the Boland Project’s unique geology presents compared to peers globally. They support a future operation that could produce critical heavy rare earth metals sustainably and from a cost base that could be competitive with the lowest quartile of REE miners globally. As a Company, it does not make that statement without strong supporting evidence.
Comment: For COBR it is all about getting its REE’s and the company more noticed by investors. We do our bit here, but really the shares should be 2p – 3p rather than just above a penny.
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), updated on the progress of its Technical Centre at Bridgend in Wales. PHE said it was extremely pleased with the progress we are making on the FTU build, whilst it continues to maintain its schedule and budget. This is a hugely significant milestone for the Company as having a fully operational technology centre will undoubtedly help provide it with even greater impetus to its pipeline whilst further innovating the services that it can provide. It looks forward to providing further updates as we progress towards completion in Q4 this year.
Comment: Although PHE’s Technical Centre feels like it would win no awards for speed to being fully operational, at least the company is finally doing something that could have legs.
Tavistock (TAVI) announced that it has entered into an agreement for the sale of two of its subsidiary businesses: i) Tavistock Partners Limited and ii) Tavistock Estate Planning Services Limited to The Saltus Partnership Holdings LLP for a cash consideration of up to £37.75 million. TAVI said the Disposal enables it to realise a substantial profit on its investment in the businesses involved, providing it with significant working and development capital. This will enable the continued reshaping of the Group to optimise the balance between regulatory risk and commercial reward.
Comment: Given that the market cap of TAVI was only around £9m before the disposal announcement, and is only around £18m now, it would appear that there may be some catching up to do as far as the share price is concerned, the fact that the Milky Bars are now on the company notwithstanding.
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