Chancellor Rachel Reeves has said that the Cabinet is united on the forthcoming Budget / Government spending plans.
Comment: Given that the Budget is likely to be a disaster as far as growth is concerned, and even with the raised taxes will not be able to fill the alleged black hole, whether of £22bn or £40bn, there is some comfort that the Cabinet can be blamed for the consequences in its entirety in advance.
Rome Resources (RMR), the DRC-focused tin explorer, updated on drilling progress at the Mont Agoma Prospect, its polymetallic tin-copper-zinc prospect located in the North Kivu province in the Democratic Republic of Congo, which, together with the Kalayi Prospect and the Mont Agoma Northwest prospect, comprise the “Bisie North Projects”. RMR said drilling continues apace at both Kalayi and Mont Agoma. The flow of samples for assay reporting is continuing, with the first batch now at ALS Johannesburg. Initial assessments from the cores continue to be very promising, in terms of both tin and copper indications and it looks forward to being able to update the market as soon as laboratory analyses become available.
Comment: With the “seller” out earlier this month, and solid and significant newsflow since, it is encouraging that the market is responding well with RMR’s progress, something which should be magnified as lab analyses comes in.
Sovereign Metals (SVML) announced that it has completed an infill drilling program at its Kasiya Rutile-Graphite Project (Kasiya or Project) to support ongoing technical studies. SVML said that completing the infill drilling program on schedule will assist it in upgrading our Mineral Resource Estimate and will feed into its future technical studies as part of ongoing pre-development activities at the Kasiya Project being overseen by the Sovereign-Rio Tinto Technical Committee.
Comment: SVML shares remain remarkably steady given the ongoing progress reported by the company at Kasiya, and the frequent reminders of the solid relationship with mining giant Rio Tinto.
Mulberry (MUL) said it has considered the contents of the announcement from Frasers Group plc (on 11 October 2024 regarding its unsolicited revised possible cash offer at 150 pence. After careful consideration with its advisers and in light of the above, the Board is unanimously of the view that the Possible Offer is untenable and that the Company should focus its attention on driving the commercial performance of the business.
Comment: As stated previously, given the lay of the land, and its recent share price, MUL should be grabbing 150p with both hands. The fact that it is not may be that it feels more could be on the table. Unfortunately, the company cannot really afford to lose this game of bluff.
Plexus Holdings (POS), the AIM quoted oil and gas engineering services business, announced its Final Results for the year ending 30 June 2024. Sales revenue £12.7m (2023: £1.5m). Adjusted EBITDA £5.4m (2023: £2.5m loss). Profit before tax (reported) £2.8m (2023: £4.2m loss). POS said during the year to 30th June 2024, the Group made a profit before tax of £2.80m compared to a loss in the prior year of £4.23m. This return to profitability is due to an exceptional licence deal and a large special project, in addition to progress made in the underlying revenue of the core business of Jack-up rental wellheads.
Comment: POS has swelled to something that feels as though it is approaching mid cap status. While this may be something of an exaggeration, the improvement is welcome.
Sunda Energy (SNDA), the AIM-quoted exploration and appraisal company focused on gas assets in Southeast Asia, updated on its operational and funding planning with respect to the TL-SO-19-16 Production Sharing Contract in Timor-Leste as well as an update on the Company’s new business ventures. SNDA said it was pleased with the continued progress being made at our Chuditch PSC project as we move towards drilling Chuditch-2. It remains confident that its ongoing discussions with Pacific LNG, combined with its strong government relationships in Timor-Leste, will enable its to deliver on the project’s significant potential.
Comment: The market remains remarkably patient, and interested in SNDA, something which is a very fortunate state of affairs as compared to other comparable minnows. One hopes that the company will not let its many supporters down.
Hunting (HTG), the global precision engineering group, announced its Q3 2024 Trading Update and the securing of $300 million of new borrowing facilities. Group EBITDA of c.$87 million in the year to 30 September – up 16% year-on-year. HTG said it has delivered a 16% year-on-year increase in its year-to-date EBITDA result, as positive increases in trading were recorded across most product groups. The Group’s revenue and earnings continue to pivot towards our OCTG and Subsea businesses, which reflect the wider market momentum but also Hunting’s diversified portfolio of products.
Comment: Shares of HTG have already been rolling over since the summer, as the market sniffed lowered guidance could be on its wait. The question is whether this news is already in the price. One suspects that towards 300p it may be.
Genflow Biosciences (GENF), an emerging leader in the field of longevity research, announced today that it has received official confirmation of €4,026,525 in non-dilutive financial support from the Wallonia region. The funds will support the ongoing development of Genflow’s lead gene therapy, GF-1002, for the treatment of Metabolic Associated Steatohepatitis (MASH), a severe and progressive liver disease.
Comment: Fountain of youth play GENF is not only in a very hot space, it is a magnet for non-dilutive funding, something that the market has still not grasped. This is especially the case at current share price levels.
CleanTech Lithium (CTL), an exploration and development company advancing sustainable lithium projects in Chile, announced that the Company has reached an agreement with the Laguna Verde Option Vendors to extend the due date of the second staged payment of US$1.25 million. CTL said it was grateful for the Vendors understanding and agreement to extend the payment deadline in light of the ASX listing delays. This collaborative approach underscores the strength of our partnership and reinforces our commitment to mutual success.
Comment: The run up to the ASX listing remains the most important thing on CTL’s horizon, something which is underlined by today’s news.
Orosur Mining (OMI), announced an update on the progress of exploration activities at the Company’s Anzá Project in Colombia. OMI said mapping and sampling by ourselves and its previous JV partners are showing the enormous potential across the Anzá project. Pepas particularly is showing excellent numbers and it is aiming to be drilling here in the short term.
Comment: Having raised cash in September, and with all systems go as far as Anzá news since then, it should be the case that OMI is in full charm offensive mode with the market. Let’s see what the company can do.
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