Zephyr Energy (ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development and carbon-neutral operations, noted recent market speculation that the Company is in the process of, or planning for, an equity fundraise. The Company confirms that it has not been undertaking nor is it intending to undertake an equity fundraise, and that it knows of no notifiable reason for the Company’s recent material share price movement.
Comment: It is a blight on the stock market and small companies, that without redress share prices can be damaged, and investors in turn, by those attempting to front run fundraises. Of course, if they knowingly deliver false flags on placings, nothing happens to them. Therefore, the blight continues.
URA (URAH), the gemstone mining company, announced a sales update for the Gravelotte Emerald Mine following the commencement of phased production in the second quarter of 2024. The small first trial sale, initially scheduled for September as part of a far larger auction to be conducted by Bonas Group, has been postponed due to export delays to Thailand. URAH said that despite the delay in the trial sale, it is continuing to produce material from the Gravelotte mine and building its stockpile of material in preparation for its first sale at a later date. It is making good progress with work at the Curlew mine in preparation for the commencement of phased production and will update the market shortly on its progress.
Comment: The market has already punished URAH in advance for the delay in firstly production and now sales. This provides an opportunity at URAH where the shares are now the same price as they were at the end of last year before production started.
hVIVO (HVO) announced that Octopus Investments has raised its stake in the CRO from 9% to 10%.
Comment: Octopus are continuing to add, seemingly at a rate of 1% per TR1. The latest impetus for buying is clearly the recent knock out interim results.
Oberon Investments Group (AQSE: OBE), the boutique investment management, wealth planning and corporate broking group, announced that David Thompson will be joining the investment management division. Alongside this, the Company has also acquired a new team in the wealth planning division. OBE said following on from Oberon’s record growth last year and an extremely strong start to 2024, it is exciting to welcome David and its new wealth planning team to the Group. Oberon continues to attract investment professionals of a high calibre and experience and is increasingly seen as an attractive home for professionals looking to provide a personal service for their clients. Oberon’s culture, values and focus on client relationships and outcomes are very much in line with the new teams’ approach.
Comment: The model of becoming a nexus for the best in the City, and provide a boutique service, is clearly winning for OBE. We see the company adding to this successful mix with the latest hires.
Wishbone Gold (WSBN) announced additional exploration findings at its Red Setter prospect following further interpretation of the Mobile Magnetotellurics Survey data conducted by Expert Geophysics Limited last year. Red Setter is located in the Paterson Range in Western Australia and neighbours Newcrest’s Telfer gold mine, which is one of the most productive resources in the region. WSBN said these new findings are of crucial importance as they reinforce the fact that Red Setter has a 3km strike with impressive gold grades near surface and a clear picture of the possible origins of the gold and copper deposits. This data provides a key insight in advance of the next stage of the diamond drill program at the site.
Comment: Various sinister factors continue to ensure that WSBN does not get a fair hearing, both in terms of the newsflow and the share price. But at least today’s news can be read as a clear win for the company.
Northcoders (CODE), a UK technology training business, announced its results for the six months ended 30 June 2024. Revenue grew to £4.4 million (H1 2023: £3.5 million), an increase of 26%, slightly ahead of management expectations. Tenfold increase in underlying adjusted EBITDA of £0.4 million (H1 2023: £0.04 million) as the Group leverages the efficiencies of investments made in FY 2023.
Comment: CODE seems to be back on track after a rather volatile ride, both fundamentally, and in share price terms.
Helium One Global (HE1), the primary helium explorer in Tanzania, provided an update. The Company said it has now submitted a comprehensive Mining Licence application to the Ministry of Minerals and Mining Commission for the southern Rukwa Helium Project which encompasses the Itumbula, Tai and southern prospective areas for commercial development. HE1 said this is yet another major milestone in the Company’s history. The last 12 months have been a very significant chapter for Helium One in which it has made a successful helium discovery, completed a detailed feasibility study, established a commercial development plan and successfully applied for a ML. An extraordinary achievement within that timeframe and it was very grateful to the efforts of everybody involved.
Comment: After all the water that has passed under the bridge, and all the money raised, we find out that HE1 is apparently only at the foothills in Tanzania, now submitting a mining license application. It will be interesting to see how patient the market will now be, the recent US asset “distraction” purchase notwithstanding.
Wildcat Petroleum (WCAT), a company targeting investment opportunities in businesses and assets within the upstream sector of the petroleum industry, announced it has entered into a MOU with Nile Petroleum Corporation, the National Oil and Gas Corporation of South Sudan, to collaborate together for acquiring the assets held by Petronas Carigali Nile Limited, a subsidiary of Petronas Nasional Berhad, in the Republic of South Sudan. WCAT said that In February 2024, it received approval from the South Sudanese Ministry of Petroleum (MOP) to undertake a petroleum deal in South Sudan including the purchase of large-scale oil production. The Company continues to work with the MOP and have enhanced its relations with Nilepet, positioning Wildcat with a great opportunity to acquire oil producing assets in the region.
Comment: While the market has so far not taken this on board, today’s announcement from WCAT underlines the way that the company is in the box seat with South Sudan as far as the long awaited petroleum deal. The lack of share price movement initially, offers an open goal for those who appreciate the message in the RNS.
Hummingbird (HUM) noted the update yesterday from Pasofino Gold Limited, regarding the execution of an exclusivity agreement with a potential purchaser to acquire Pasofino for a total consideration of US$75 million, representing a purchase price of US$0.66 (approx.C$0.907) per Pasofino Common Share. Hummingbird holds a 53% shareholding in Pasofino. This exclusivity agreement comes after a strategic review process, during which Pasofino engaged with multiple parties, including two that had previously submitted written proposals to acquire the company. A site visit has also taken place as part of this process with the potential purchaser.
Comment: While the market has adopted and ongoing “treat em’ mean, keep em’ keen” approach to HUM, today’s news regarding a potential purchaser of Pasofino is too much even for the most ardent bear to ignore.
Cadence Minerals (KDNC) reported the progress of the environmental licensing and the testing of the 67% ‘Green Iron’ processing flow sheet at the Amapá Iron Ore Project. KDNC said it was great to see the continued progress at Amapá. The Project has consistently delivered all the required environmental studies and applications either on time or ahead of schedule. Based on the positive feedback from the local government, it understands that all necessary permits will be granted before the year’s end. Additionally, it was actively advancing the development of a 67% “green iron” product and securing equity financing for the Project.”
Comment: Amapá is the flagship for KDNC, and to see further significant progress is something which should filter through to the share price, which has been treated harshly despite the prospect of equity financing.
TruFin (TRU), the London-based holding company of three growth-focused technology businesses operating in early payment provision, invoice finance, and mobile games publishing, announced its half year report. Combined gross revenue for the Group increased 261% to £25.3m (H1 2023: £7.0m). TruFin Group recorded its maiden first half positive EBITDA of £2.9m (H1 2023: £(3.6)m). TRU said these are results full of firsts for TruFin: growing revenues by more than 200%; recording profitability and generating cash for a half year for the first time.
Comment: TRU represents one of the types of turnaround companies the stock market sorely needs, especially at the small cap end. The transition from red to black is always pivotal.
Zinc Media Group (ZIN), the television, brand and audio production group, announced it has won major new production contracts worth a combined £4m of revenue to the Group. The specifics of these commissions will remain confidential until the broadcasters release details at a later date. These new contract wins keep the Group on track to deliver results for FY24 in line with market expectations. In addition, Zinc has been commissioned by a global music label to produce a major new biopic on one of the biggest pop bands of the 20th century. This seven-figure revenue production, which comes from a new customer, is due to be filmed towards the end of FY24 and early FY25.
(Jon Lev) This television, content and audio production group has won new production contracts worth £4m. There is a multi-million-pound commission for a global streaming platform from its documentary division. Also, a biopic on one of the biggest pop bands of the 20th century. Although the editorial details are being kept confidential the revenue is set to be included in the Finals to December 2024. The interims to June are to be announced on Wednesday 2nd October and current mkt expectations are for the full year are revenue of £41m and an EBITDA of £2.1m which is ahead of the previous year. There is cash of c.£4.9m, which gives an EBITDA/EV value of a lowly 5 x.
Comment: Obviously, we are forced to guess which major 20th century band Zinc is going to be producing a major biopic on. It is currently between Black Lace and The Beatles. It will be interesting to see whether the stock market gives ZIN and its share price a break on the latest news. (Jon Lev) At 66p with a £15m mkt cap it suggests its lights, camera and action.
Warpaint London (W7L), the specialist supplier of colour cosmetics and owner of the W7 and Technic brands announced its unaudited interim results for the six months ended 30 June 2024. Adjusted EBITDA grew 44% to £11.4 million (H1 2023: £7.9 million). Profit from operations was up 75% to £11.0 million (H1 2023: £6.3 million). W7L said it was delighted with the Group’s performance in the first half, with continuing strong growth in sales and profits reflecting the ongoing success of the Group’s strategy of focusing on growing profitable sales of its branded products globally, whilst increasing overall margins.
Comment: The schoolboy error that one can make with regard to W7L is not to believe the numbers, as to an over cynical small cap observer they can appear too good to be true. This is certainly not the case, and allows W7L further scope for considerable share price upside.
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