Jubilee Metals Group (JLP), a diversified metals processing group, updated on its South African operations and its Zambian projects for the quarter ended 31 March 2023. The company said its South African operations continue to deliver a strong performance recording 9 019 PGM oz from own operations and 2 418 PGM oz through its JV partnership agreement, for the quarter January to March. The ounces sold under the JV agreement stem from excess stock held at Inyoni with its capacity fully utilised under the current agreements. This places its South African operations on track to meet and potentially exceed the full year guidance of 38 000 PGM oz.
Comment: After perhaps over egging the negatives in previous updates, this RNS looks to be a “getting on with the job” affair, which is what we were previously accustomed to with JLP. The key now will be to break back above the 10p level.
Karelian Diamond Resources (KDR) announced that exploration programmes are planned to commence in the Kuhmo region of Finland for diamonds and in Northern Ireland for nickel, copper and platinum group metals. The company said it was delighted that both these exciting exploration programmes are planned to commence shortly and it looks forward to seeing the results as they come in. The work, in both cases, will give it additional information and in relation to Finland could include the discovery of diamonds in one or more of the kimberlite targets. It also looks forward very much to work being initiated at Lahtojoki, particularly in relation to the highly sought after and valued pink diamonds.
Comment: April to date has already seen a significant turnaround in the share price of KDR, with today’s news providing the justification for this, and perhaps much more on the upside.
Insig AI (INSG) announced that it will be providing data and software to the FCA’s 2023 TechSprint, known as the Global Financial Innovation Network’s (GFIN) Greenwashing TechSprint. The company said its machine-readable data set and interrogation tools are a perfect complement to helping regulators and investors navigate the vast and increasing volumes of corporate disclosure data. As a technology provider to the FCA TechSprint on greenwashing, it sees its role as helping deliver transparency and easy access to data through modern AI tools. Group revenue (unaudited) for its financial year ended 31 March 2023 is expected to be at least £2.0 million comprising approximately £1.4m from the Group’s legacy Sport In Schools business and approximately £0.6 million from the Insig AI business. This represents sales growth of around six per cent at Sport In Schools and 60 per cent at the Insig AI business. Richard Bernstein is to step up to Executive Chairman.
Comment: With Richard Bernstein moving up to Executive Chairman, from non executive, and a deal with the FCA, one can said that Insig AI is stepping up to the plate in terms of being an improving situation for its investors.
Shanta Gold (SHG), the East Africa-focused gold producer, announced that Eric Zurrin, CEO, has informed the board of his decision to step down from his role after six years with the Company. The company said Mr Zurrin will remain as CEO until the publication of the Interim Results and throughout Q3 to ensure a smooth transition to new leadership for Shanta Gold. The board has initiated a search process to appoint a new CEO and will update the market on its progress in due course. The company also announced production and operational results for the quarter ended 31 March 2023 and said it is now a 100,000 ounce per year gold producer with a diversified resource base, a de-risked balance sheet, and significantly more financial flexibility. Ramp up at the site is progressing well, with 2,200 ounces produced in the first 22 days of April 2023.
Comment: It would appear that the present CEO is leaving on a high, and that after six years can point to work well done. In the current environment one would imagine that Shanta will continue to improve its metrics.
Checkit (CKT), the intelligent operations platform for the deskless worker, reported its audited preliminary results for the year ended 31 January 2023. The company said FY23 results ahead of market expectations, with ARR increasing 28% to £11.5m (FY22: £9.0m). ARR has doubled over the last two years, reflecting the Group’s strategy to focus solely on subscription based sales, with recurring revenue accounting for 93% of total FY23 revenues. There has been US footprint expansion, with 91% year-on-year growth in US ARR to £2.8m (FY22: £1.5m).
Comment: One can see from today’s results why shares of Checkit have doubled since December, and why one would imagine this improving trend is set to continue for the rest of this year.
Cizzle Biotechnology (CIZ), the UK based diagnostics developer, announce that following successful results from its current research programme with the University of York, due to end this year, that it has today signed a new research agreement with the University for the further development and validation of its CIZ 1B biomarker technology for early stage cancer diagnosis and other potential applications in cancer therapy. The company said it was delighted to further extend its relationship with the University of York and in particular the leading-edge research being a carried out in Professor Dawn Coverley’s laboratories. The continuity and commitment of the researchers at the University has been a key building block in the development and commercialization of the CIZ1B biomarker for early cancer diagnosis.
Comment: The big driver for CIZ in recent months has been the China angle. However, the new agreement today with the University of York underlines the fact that progress has been made for early stage cancer diagnosis, something which should continue to help the already improvement sentiment in the stock.
Union Jack Oil (UJO) a UK focused onshore hydrocarbon company note that Europa Oil & Gas (Holdings) plc and Egdon Resources plc, as part of their Interim Reports, have today published commentary on various projects in which Union Jack hold economic interests. Union Jack’s results for the year ended 31 December 2022 will be published on Monday 15 May 2023. The company said Wressle, currently the second most productive onshore UK oilfield, continues to surpass all expectations, and it remains committed to further enhancing the field’s efficiency and increasing production through gas monetisation solutions, alongside advancing the development drilling to enable further production.
Comment: The market continues to be under enthused as far as UJO is concerned on a share price basis, even though the “second most productive onshore UK oilfield appears to be firing on all cylinders.
Empire Metals (EEE), the AIM-quoted resource exploration and development company, announced that the company’s maiden RC drill programme has been completed at the Pitfield Copper Project located in Western Australia, with a total of 3,206 metres drilled. The company said it was pleased to announce that field activities for the maiden, reconnaissance drilling campaign at Pitfield have now been completed and that the drill samples have been dispatched to its laboratory assay provider, Intertek Minerals located in Perth Western Australia.
Comment: Empire Metals has been one of the better improving situations as far as small cap explorers, a point that has been underlined once again by today’s update. One would expect the rally from the 0.75p area in October to continue shortly.
SEED Innovations (SEED), the AIM-quoted Company investing in the wellness space, announces the conversion of £600,000 CLNs in Northern Leaf Limited, a Jersey based medical cannabis cultivator, following its successful £3 million pre-IPO fundraise, with a future IPO currently targeted for this year. SEED said this represents an exciting time in the development of this young medicinal cannabis cultivation business, which it is delighted to support in its early stages. SEED’s strategy is to identify early investor opportunities in companies like Northern Leaf, which have the potential to deliver real growth to our shareholders.
Comment: The name of the game for SEED is currently to get the market to appreciate the value of the work and the investments the company has. The recent revival in medical cannabis companies should help this process.
Thor Energy (THR) provided an exploration update on the company’s 100% owned Wedding Bell and Radium Mountain uranium and vanadium projects in the Uravan Mineral Belt, Colorado, USA. The company said it was pleased to receive these very encouraging vanadium assay results for the selection of physical samples sent for analysis. The assay results confirm the uranium mineralisation determined by downhole gamma and highlight broader enriched vanadium haloes of up to 0.27% vanadium. These vanadium-rich halos are typical of this style of ‘Salt Wash’ sandstone-hosted uranium mineralisation.
Comment: We have been seen some glimmers of positivity in the THR share price this month, and today’s update could be enough to back such moves and allow a rather more extended recovery from year lows.
Touchstone Exploration (TXP) announced that the initial Royston-1X production test of the least prospective section of the well confirmed the presence of light crude oil at non-commercial rates. Touchstone has an 80 percent operating working interest in the well, which is located on the Ortoire block onshore in the Republic of Trinidad and Tobago. Heritage Petroleum Company Limited holds the remaining 20 percent working interest. The company said it is encouraged that the initial test of the Royston-1X well successfully confirmed the presence of light oil in the subthrust sheet, validating our internal wireline log analysis. The test results and crude oil analysis have been crucial to establish the extent of the hydrocarbon column penetrated by the wellbore, providing valuable baseline information for evaluating the log data and defining future testing intervals.
Comment: Today’s update from TXP should have been enough to please the market, although the shares have been initially marked down. It would be surprising if the stock fell below December support in the low 50p’s.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.