Skip to main content

Your stock market edge

Hummingbird (HUM) said it was pleased to note it has released an interview with CEO Dan Betts, discussing the Company’s latest activities. The interview can be accessed through the following link:

Comment: Mr Betts and Mr Mir via Zaks Traders Cafe enjoyed a thorough appraisal of the current position at Hummingbird Resources, not least how the company compares to the plethora of non-producing junior mining / exploration plays.

Critical Metals (CRTM), a mining investment company, announced that the Company has entered into a non-binding term sheet with inter alia Katanga Strategic Resources and Operations SARL, pursuant to which Critical Metals will acquire 100% of the Kastro Plant assets, a hydrometallurgical plant located in Lubumbashi in the Democratic Republic of the Congo for $8 million. CRTM said it was absolutely thrilled to have signed the heads of terms to acquire the assets within the Kastro Plant in the DRC.  It has signalled to the market several times that Critical Metals was on the cusp of a major plant transaction.

Comment: RNS releases on consecutive days, and one would expect that after yesterday’s offtake news and today’s term sheet investors will be back for the autumn in the shares which are still attractively near one year support.

Capital Metals (CMET), a mineral sands company approaching mine development stage at the high-grade Eastern Minerals Project in Sri Lanka, noted that the Supreme Court in Sri Lanka has determined a decision by the Sri Lanka Muslim Congress to expel Minister Naseer Ahamad from its party membership to be legally valid. As a result of his expulsion, Mr Ahamad has lost his parliamentary seat and therefore his position as Minister of Environment with responsibility for the Geological Survey and Mines Bureau. CMET said this is a positive development resulting in the removal from office of the minister it believes to be primarily responsible for the illegal interference with its licences.

Comment: With the big, bad wolf gone, we should see CMET back on track as far as its licenses and its very solid game plan in Sri Lanka.

Guild Esports (GILD), a gaming-focused media business, announced that it has become the first professional gaming team to collaborate with #Merky FC, a national careers programme created to enhance and protect diverse representation in football, to create more leadership and professional development opportunities for young Black people in the UK. #Merky FC was first established in 2022 by Stormzy. GILD said addressing the distinct lack of representation that exists across so many industries is of great importance and informed the decision for Guild Esports to be the first professional gaming team to partner with #Merky FC. Gaming and esports are creative industries that suffer from a lack of diversity.

Comment: It is a shame that there are not such initiatives to help with the lack of diversity as far as the stock market and journalism, where we are still in the 20th century. Both areas could do with a Stormzy or two.

Acuity RM Group (ACRM) announced that its wholly owned operating subsidiary, Acuity Risk Management Limited, has won a new three year contract worth £85,000, for the use of Acuity’s software platform, STREAM®  by a new client to manage their cyber security and other enterprise risks.  This client is a multi-national telecoms business and is expected to lead to further contracts with this customer.

Comment: Another RNS with a contract win for Acuity, underlining the scaleability of its in-demand STREAM®  platform. One would expect the shares to retest the best levels of the year near 10p by the end of the year off the back of further contract announcements in the interim.

Atlantic Lithium (ALL), the African-focused lithium exploration and development company targeting to deliver Ghana’s first lithium mine, advise that Ghana’s Environmental Protection Agency has granted authorisation to divert two transmission lines that run across planned mining areas within the Mankessim prospecting licence, which holds the Company’s Ewoyaa Lithium Project. The company said the diversion of the transmission lines that traverse the proposed Project site forms an important part of the mine plan and the Company’s preparations towards shovel readiness at Ewoyaa.

Comment: Shares of ALL had a decent bump to the upside to start the week, although perhaps not in anticipation of today’s transmission lines news, but more as the promised land of Ewoyaa being shovel ready.

Great Southern Copper (GSCU), the company focused on copper-gold and lithium exploration in Chile, announced the results of its drone-magnetics survey at its Especularita project. The company said the results of the magnetics survey have been very effective in assisting with our mapping and understanding of the geology at Especularita. The correlation between magnetic anomalies and known mineralisation at prospects such as Abundante and Teresita is highly encouraging and will greatly benefit our on-going exploration by providing more targets for investigation.

Comment: Although the company would probably have a higher profile even if MI6 did their PR, it is seemingly one of the best exploration prospects around, and perhaps the way it does not have a big following yet actually works in its favour. This is especially with regard to the GSCU share price.

Mkango Resources (MKA) and CoTec Holdings Corp. (TSXV: CTH provided an update on the roll-out of HyProMag’s rare earth magnet recycling technology into the United States. MKA said it was very excited about opportunities for growth in the United States and look forward to working with CoTec and HyProMag as it continues to scale-up and roll-out the HPMS rare earth magnet recycling technology. HPMS has potential to unlock the supply chain for rare earth magnet recycling and it’s fantastic to see this UK developed, homegrown, innovative technology continuing to gain traction internationally.

Comment: In a Net Zero world it is clear that MKA is on the right track as far as sentiment with its rare earth magnet recycling roll-out. Hopefully, with shares at one year support, there is some traction from current levels with investors.

Bushveld Minerals (BMN), the AIM quoted, integrated primary vanadium producer and energy storage solutions provider, said it noted the market speculation regarding Mr Kamran Sattar and Portillion Capital Ltd’s intention to call a general meeting of shareholders in order to effect boardroom changes. The Company met with Mr Sattar yesterday afternoon and having discussed his concerns, Mr Satter has confirmed in writing that he no longer intends to attempt to requisition a general meeting of shareholders.

Comment: It would appear that the Man From Del Monte is happy, which is just as well given the share price of BMN at the moment. Hopefully, a relief rally of sorts will ensue.

San Leon (SLE), the independent oil and gas production, development and exploration company focused on Nigeria announced an investment of up to $187 million by Tri Ri Asset Management Corp. into San Leon; further investments by San Leon in Energy Link Infrastructure (Malta) Limited using the proceeds of the TRAM investment, making San Leon the largest and majority shareholder in ELI with approximately 55 per cent. of the company.

Comment: While there may have been the odd Doubting Thomas as far as SLE’s gameplan was concerned, the company has arguably blown them out of the water with the latest announcement. Mr Fanning and his team have pulled off the big one in very difficult market conditions.

1Spatial (SPA) interims to July report an 11% improvement in revenue to £15.5m of which 53% (£6.6m) is recurring with the US performing particularly strongly with a 27% rise. This progress did no filter down to EBITDA which was 16% lower at £1.7m and a loss of £0.5m against a PBT pf £0.3m. It’s been a long loss-making journey for this SaaS, Location Master Data Management (LMDM)  provider. The investments made first into product development then into the sales teams are resulting a strong order book, a growing recurring revenue stream and substantial sales pipeline. There have the first four wins for its SaaS solutions, which the management hope will be a transformational business opportunity. It seems, however with net cash of £0.5m, further equity is likely to be required to support this growth.

Comment: At 45.5p the Mkt Cap is £50m making the prospects seem already  in the price.

Surface Transforms (SCE) reported yesterday afternoon that Brett Gordon has built a 3.1% stake. After reporting interims to June in late September, the shares fell to 25.5p which is just above the year’s low. Brett Gordon is based in Boston and co-manages HarbourVest’s Solutions focusing on separately managed accounts which has invested over $100b in the last 40 years.  In June’ SCE’s interims showed a disappointing 15% increase in Revenue to £3.3m and an increased operating loss of £4.6m.  In October 2022, £18m was raised at 40p a share to massively increase factory production to meet strong demand for its carbon fibre reinforced ceramic automotive brake discs which are used for high-end electric vehicles, such as Tesla. The Phase Two of the factory upgrade  is to be completed next year,  and will produce £50m pa.  In June, there was net cash of £4.5m and great expectations of an improved 2nd half as production bottle-necks ease. The lifetime value of the existing contracts is £290m and its potentially a £2billion a year market.  The next Trading update is in January for the year-end December.

Comment:  Patience should pay off for the astute investor.

EnSilica (ENSI), a mixed signal chipmaker announces full year results for the year ended 31 May 2023. Revenue increased to £20.5 million (FY 2022: £15.3 million). Operating profit increased to £0.83 million (FY 2022: adjusted £0.70 million). Gross margin 39.9% (FY 2022: 33%). EBITDA £1.56 million (FY 2022: Adjusted £1.04 million). The company said it was delighted to be announcing such a strong set of full years results for EnSilica, which provides a clear indication of the strength and resilience of its business. Its recent new design wins are a clear indication that its model is being fully deployed, securing both revenue and profit growth in the medium term.

Comment: Given how tough the stock market is for investors currently, the type of metrics released by ENSI today mean that the company should be on watchlists.

Dekel Agri-Vision (DKL), the West African agriculture company, provided its Q3 2023 production for the Ayenouan palm oil project in Côte d’Ivoire and the cashew processing plant at Tiebissou, Côte d’Ivoire. The company said a 192% increase in Q3 CPO sales volumes compared to Q3 2022 has kicked off a very strong start to the H2 2023 financial performance of the Palm Oil Operation which is performing at close to record levels. It is pleasing to see a 134% increasing in the Cashew Operation processing rate compared to Q2 2023.

Comment: The fundamentals have turned around at DKL for quite some time, both on the palm oil and the cashew sides, it is now up to the market to re-rate the shares accordingly.

Oxford Cannabinoid Technologies (OCTP), the pharmaceutical company developing prescription cannabinoid medicines, announce that dosing of all the cohorts of the Phase I, single ascending dose study for OCT461201 has been successfully completed. No safety or tolerability concerns were exhibited with any dose tested. As a result, OCTP is satisfied that it is safe to proceed to the next stage of clinical development of its lead compound OCT461201. OCTP said it was delighted to announce the completion of its Phase I, single ascending dose study of its lead drug candidate, OCT461201. This is a significant milestone in OCTP’s journey as it cements its transition into a clinical-stage business.

Comment: Another strong RNS from OCTP, one that should ideally revive the positive momentum in the shares that we have seen for most of 2023 to date, as the company moves to the next stage of clinical development.

Online Blockchain (OBC) and ElevenLabs – a world-leader in voice Artificial Intelligence (AI) research and deployment – are collaborating in a tech partnership to unlock the full potential of voice AI. OBC said by joining forces with ElevenLabs in this exciting venture it can combine its large range of varied technical experience to research wider use cases and applications, and develop new AI benefits for end users.

Comment: OBC, forever on the zeitgeist.