First Class Metals (FCM) the UK listed metals exploration company, announced an update on the progress on the Zigzag property which is currently focused on the lithium potential. Final results from the initial thirty-nine samples from the first phase of exploration received with significant number of results over 1% Lithium (Li2O). The company said it was buoyed by the progress it is making at Zigzag. The excellent results from these initial systematic grab samples have further supported its confidence in the property’s potential. It awaits with confident anticipation the results from the channel sampling. The grab samples have it feels ‘proved-up’ a core area of the known structure which remains open in both directions and has yet to be explored at depth.
Comment: FCM continues to prove up its assets, and with lithium particularly hot at the moment, one can see how to some Zigzag is the star of the show at the company among some investors.
Hydrogen Utopia International (HUI), a company specialising in turning non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels, announced the publication of a report by Progressive Equity Research providing a recap on HUI’s technology and progress towards its first plant, details on its innovative funding model through Ohrid Organics Limited and recent management changes.
Comment: As we have seen today from companies like Velocys (VLS), many companies are currently struggling to find funding, and in its Ohrid deal HUI has found a source of funding to give it an infinite runway, and execute on its strategy. HUI is one of the few companies to be in such a positive position, and will no doubt feel the benefit once the market catches up with this breakthrough.
Acuity RM Group (ACRM) announced that its wholly owned operating subsidiary, Acuity Risk Management Limited, has won a new three year contract worth £160,000, for the use of Acuity’s software platform, STREAM® by a new client to manage their ISO 27001 framework and excellence of service. ACRM said it is a great pleasure to win a contract with a company where there is potential to grow the account substantially. In this case it also brings a new partner into the Acuity orbit of operations, with the potential to assist Acuity grow in global markets.
Comment: The market is yet to cotton onto the fact that ACRM is a scaleable, global business that can add on contracts ad infinitum.
Pensana (PRE) provided an update on the financing of both the Longonjo and Saltend projects. The company said it has been pleased with the strong interest in the high value radionuclide-free MREC product from Longonjo and are advancing a number of offtake agreements as part of the financing. It continues to progress the financing for the Saltend project which will be independent of the Longonjo financing and as previously advised will be a bond finance, however now with support from the UK Government.
Comment: Being hand in the hand with the UK Government, at least as far as funding is concerned, has significantly de-risked PRE, something which has not been factored into the share price as yet.
Cadence (KDNC), the mining investment company, announced that on the 30 October 2023 the following director purchased ordinary shares in the Company. Kiran Morzaria, Director & CEO, 100,806 at 7.4p.
Comment: There are few things better than directors leading from the front as far as share buying, and today’s announcement at KDNC, after the sharp rise for the shares yesterday should keep the momentum going up to 10p and beyond.
Sovereign Metals (SVML) provided its quarterly report for the period ended 30 September 2023. Highlights included forecast cash operating costs of US$404/t of product that would position Kasiya as the lowest cost producer of rutile and graphite globally. Rio Tinto investing $40.6m to become a 15% Strategic Investor, and China’s recent graphite export restrictions at a time when the anode graphite market is moving into deficit with demand rapidly growing in the lithium-ion battery and EV sectors.
Comment: It could be the case that the China graphite export restrictions news finally gets SVML in focus for the standout company it is, where the Rio investment and massive rutile asset have thus far not been able to do so, at least in share price terms.
Up Global Sourcing’s (UPGS) finals to year-end July show record revenue with an 8% rise to £166.3m with PBT of £16m up from £15.4m. The H2 showed improvement at this well-established homeware brands owner including Salter, which is 151 years old, Beldray est. 1872, Russell Hobbs, Dreamtime and George Wilkinson. The improved revenue is driven by exceptional online growth replacing sluggish retail sales channels which also improves cash generation. Most of the online transactions are made through third party platforms such as Amazon. The strong brand portfolio is proving resilient and scalable and sells to over 300 large and small retailers across more than 40 countries. It specialises in five product categories. The EPS of 14.6p gives a P/E of 7.8x and the dividend was increased 4% to 7.38p giving a yield of 6.5% reflecting strong cash generation and reduced debt to £14.8m.
Comment: This seems a low rating given the reliance which is also evidence of the value of portfolio of brands.
Rosslyn Data Management (RDT) finals to April reported 11% growth in revenue to £3m and importantly gross margins increasing to 35% from 17% with reduced administration costs. The loss before tax fell to £2.8m from £4.1m. Since the 50 into 1 share consolidation and fund raise at 25p with £3.3m in August this cloud-based enterprise data analytics platform has won six new ‘blue-chip’ customers on multi-year contact. As the strength of Rosslyn’s Ai assisted platform enables it to enrich data, to provide insight into diversity and sustainability within the supply chain.
Comment: The poor commercialisation track record seems fully reflected in the 14p price and £2.4m mkt cap and not the prospects, which is what investing is about, right?
Great Southern Copper (GSCU), the company focused on copper-gold and lithium exploration in Chile, announced that it has consolidated its concession area in the Salar de Atacama district of Chile, which hosts the world’s largest reserves of lithium. The company said the Salar de Atacama is a Tier 1 lithium producing region and our concessions are located near to the largest lithium producers in Chile, underscoring the great potential of this project. It looks forward to advancing its exploration efforts at Monti and updating the market on its progress.
Comment: As the company remains painfully under the radar, it gets a mention once again in the RNS Hotlist.
IamFire (AQSE:FIRE) announced audited final results for the year ended 30 April 2023. The company said its primary investment WeShop is making tremendous progress as it seeks to bring the key ingredients of social and commerce together in a way that could unlock an enormous opportunity for consumers, retailers, and brand owners. The traffic across the WeShop app continues to grow as a result of continued uptake from various creators and influencers which enables viral uptake of the app especially having WeShop support events such as Soccer Aid for UNICEF.
Comment: FIRE continues to push its social commerce with success, while the stock market underlines how anything tech related and innovative in the UK should probably be listed in the USA.
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