Phoenix Copper (PXC), the AIM-quoted USA-focused base and precious metals emerging producer and exploration company, announced its unaudited interim results for the six months ended 30 June 2024. PXC said its records show that before the Empire mine closed in 1942, they were mining 6% to 8% copper and recovering 3.64%, as well as gold, silver and zinc. The last underground shipment of ore also contained over 4% tungsten, which is high on the list of critical metals, as indeed is antimony, which it has discovered at its 4,070 acre Navarre Creek Gold exploration property. It was its view that the true value of the Company will be underpinned by the high grade underground deposit, which is open at depth and along strike, potentially spread over many kilometres. It is really exciting to have the opportunity to start unlocking this value a number of years earlier than expected.
Comment: The market is reminded again today of the so far unrecognised potential of PXC’s high grade underground deposit at Empire. We should see this prospect transfer to the company’s share price, once investors stop obsessing over the copper bond drawdown, which after all, does not have to be the only source of funding for PXC.
Strategic Minerals (SML), a producing mineral company actively developing critical minerals focused projects, announce its unaudited interim results for the half year ended 30 June 2024. SML said the return of Southern Minerals Group’s major client has positively impacted cash flow and helped sales for the six months climb to US$2.136m, the highest six month revenue since 2017. This provides an outlook for 2024 sales of more than US$4.5m.
Comment: SML is back on track in terms of sales, with the $950,000 Pre-Tax Profit underlining that the company is the exception that proves the rule as far as mining minnows not being able to make money.
Bezant Resources (BZT) reported on the renewal of a further exploration licence within the 3-licence block. Licence EPL 6605 has been extended for a 2-year period to 28th August 2026 covering the full original licence area of 419.1 square kilometres. In addition, an Environmental Clearance Certificate covering all proposed exploration activities is in place until 27th September 2025 and can be extended beyond that date. BZT said it was pleased to be awarded renewal of a further exploration licence contiguous with EPL 7170 which was renewed last month. EPL 6605 covers a further 60km of highly prospective Matchless Copperbelt stratigraphy. It will be commencing field work during the coming licence period including drilling of identified targets to be funded by projected income from the development of the Hope and Gorob mining operation.
Comment: Hope and Gorob remains a key focus for BZT, and something whose success could yet be a company maker, especially with the latest license renewal.
EQTEC (EQT), a global technology innovator, announced its unaudited, interim results for the six months ended 30 June 2024, with post-period progress. Revenue: €1.45 million (H1 2023: €0.145 million), a 10x increase from previous year. Gross profit €0.826 million (H1 2023: €0.036 million). EQT’s Chairman said not since he has been involved with EQTEC has he witnessed consistent, steady revenues from its high-value engineering services, equipment supply and plant support services; nor has it been able to achieve margins commensurate with its high-value, world-leading capabilities. The external market forces driving the global shift towards sustainable energy and the circular economy continue to present significant opportunities for EQTEC.
Comment: It does indeed appear that EQT has finally turned the corner in terms of its business, driven by demand for its services. This is something which can only be expected to increase given the ongoing sustainable energy shift.
Novacyt S.A. (NCYT), an international molecular diagnostics company with a broad portfolio of integrated technologies and services, announced its unaudited interim results for the six-month period ended 30 June 2024. NCYT said it had made good progress during first half of 2024, which saw encouraging growth in our Reproductive Health and NIPT businesses and the delivery of £5.0m of annualised cost savings. Whilst the continued reduction of our cost base remains its core priority, it was also investing for the future and bolstering its R&D team who are developing an exciting pipeline of new products, to expand its capabilities and meet the needs of its growing customer base, which it expects to bring to market over the next three years.
Comment: Shares of NCYT still have something of a hangover in the wake of last month’s Mpox and VAT refund inspired rally. However, as today’s update underlines, this remains a complex fundamental situation, one that the share price volatility reflects.
Incanthera plc (AQSE:INC), the company focused on innovative technologies in dermatology and oncology, announced an update regarding the forthcoming launch of Skin + CELL, its luxury skincare range. The initial launch production order, together with previously advised additional production orders, totalling 350,000 units, will now be used for the wider European roll out for anticipated orders before the Company’s current financial year to 31 March 2025. This re-affirms management’s projected revenues for the financial year to exceed £10 million and for Incanthera to achieve profitability.
Comment: Shares of ICA have tripled so far this year, as the market looks for revenues at the company to take off. What will be interesting now is how much of the current £31m market cap factors in the prospect of profitability.
Kodal Minerals (KOD), the mineral exploration and development company, provided an update on the progress of construction of the Stage 1 Dense Media Separation processing plant and mining at the Ngoualana open pit mine at its flagship fully funded Bougouni Lithium Project in Southern Mali. KOD said the development of the Bougouni Lithium Project by KMUK continues to gain momentum, with the recent delivery of the DMS and crushing circuit equipment to the site and the subsequent commencement of building onsite. Positively, the open pit mining is continuing ahead of schedule.
Comment: Shares of KOD have started to steady again, as it can be seen that the company is progressing Bougouni. The open pit mining being ahead of schedule is a decent extra kicker.
Predator Oil & Gas Holdings (PRD), the Jersey-based Oil and Gas Company with near-term hydrocarbon operations focussed on Morocco and Trinidad, announced the appointment of Dr Stephen Boldy as Non-Executive Chairman effective immediately. Dr Boldy will Chair the Board of four which includes one Executive Director and three Non-Executive Directors.
Comment: Interesting times at PRD, as it strengthen the board ahead of what should be the big MOU-5 reveal.
Sovereign Metals (SVML) advises its 2024 Annual Report has been published today at https://sovereignmetals.com.au/company-reports/ As at 30 June 2024, the Group had cash and cash equivalents of $31,564,130 as at 30 June 2024 (2023: $5,564,376) and no debt (2023: nil). The Group had net assets of $34,358,774 at 30 June 2024 (2023: $9,672,569), an increase of $24,686,205 or approximately 72% compared with the previous year. This is largely attributable to the increase in cash reserves following the investment made by Rio Tinto in the year. Following the additional $19.1 million invested by Rio Tinto since 30 June 2024, Sovereign remains in strong financial position with cash at bank of approximately $43 million and no debt.
Comment: With Rio both bankrolling and validating SVML, we should finally see the re-rate for the stock all the work done at Kasiya.
Zephyr Energy (ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development and carbon-neutral operations, reports its unaudited interim results for the six months ended 30 June 2024. ZPHR said its Williston project continues to perform as a robust cash flowing engine for the Company, funding our G&A and debt service costs in addition to providing capital for the Paradox project and growth in the Williston (where production has increased for four consecutive quarters). It also looks forward to progressing the Salt Wash hydrocarbon and helium project located in close proximity to the Paradox project
Comment: Perhaps rather surprisingly, shares of ZPHR have not really bounced back after the fund raise denial earlier this month. Perhaps the prospect of progressing Salt Wash may be a catalyst for recovery, provided there really is no near term cash call.
MyHealthChecked (MHC), the consumer home-testing healthcare company, announced its unaudited half-year report for the six months ended 30 June 2024. Revenue of £0.9m (H1 2023: £2.5m; FY 2023: £11.0m). Adjusted EBITDA loss £1,199,000 (H1 2023: £296,000; FY 2023: £15,000 profit) Cash balances of £6.05m (H1 2023: £5.02m; FY 2023: £7.75m) available to self-fund next growth phase. Contingent VAT reclaim gain (net of associated costs) of c. £1.67m.
Comment: MHC shares have already had a good run ahead of today’s news, something which could be explained by the strong cash position, to fund growth, as well as the prospect of a VAT refund.
Andrada Mining (ATM), the African technology metals mining company with a portfolio of mining and exploration assets in Namibia, hereby provides an unaudited operational update for the second quarter and the first six months of the 2025 financial year, both ended 31 August 2024. ATM said it continues to improve operational performance as it optimises processes, indicated by the higher plant utilisation rates and contained tin tonnage. The exposure of the higher-grade ore at Uis has enabled it to expedite the lithium bulk-sampling campaigns. It was extremely pleased with the initial commercial sale of petalite concentrate that validates the value of Uis’s lithium mineralisation.
Comment: ATM’s sprawling business starts to take focus and we see this finally reflected in the first share price turnaround of note. However, there is still plenty of work to be done by the company to have its true value recognised.
Wishbone (WSBN) announced that its application for a co-funded Geophysics Exploration Program at its Mosquito Creek project has been accepted by the Government of Western Australia. As a result, the Company will receive a contribution of AU$55,000 towards exploration at its highly prospective Nullagine tenements at Mosquito Creek where gold nuggets over 2kg have already been found.
Zinc Media Group (ZIN), the television, brand and audio production group, announced the recommissioning of two popular series, with a combined value of £4m in revenue across FY24 and FY25. ZIN said returning series illustrate the revenue quality within the Group, with 80% of our customers returning to our companies year on year. These two returning series demonstrate the deep client relationships it has within its portfolio of companies and further underpins the confidence it has in its long-term growth.
Comment: ZIN is evidently enjoying a purple patch, something which means that it can begin to put behind reported contract delays highlighted in the summer.
Panthera Resources (PAT), with gold assets in West Africa and India, announced that the Company has now completed a drilling programme on the Bido Project in Burkina Faso (Drilling Programme). The Company holds an 80% interest in the Bido Project and may acquire the remaining 20% by expenditure of a further US$1,000,000 on exploration and development within two years, subject to the vendor’s rights of a buy-back right of 1% interest in the Bido Project for the price of US$1,000,000. A royalty will be payable to the vendor on all minerals produced calculated at the rate of 1% of the net smelter returns capped at US$3 million in total.
Reabold Resources (RBD), the investing company focussed on developing strategic gas projects for European energy security, announces its unaudited interim results for the six months ended 30 June 2024. Cash and cash equivalents up 41% at £7.6 million as at 30 June 2024, compared with £5.4 million as at 31 December 2023. RBD said it enters the second half of the year with a strong balance sheet and a number of exciting catalysts on the horizon. The Company is excited by the potential of the Colle Santo gas project, which holds significant gas reserves, and the regulatory process continues to be encouraging. It was pleased LNEnergy has established a strong relationship with Gunvor in the context of a gas offtake partner.
Comment: Wise old heads have pointed to the cash that RBD has, and the discount to it in terms of the share price. We see that there is a significant improvement in this position.
OptiBiotix Health (OPTI) noted the announcement made by ProBiotix Health plc (AQSE: PBX), the life sciences business developing probiotics to support cardiometabolic health, on 25 September 2024, that it has received a notice requisitioning a General Meeting which has been served by Platform Securities Nominees Limited, on behalf of Seneca Partners. OPTI said it was sure that Seneca Partners have only taken this action as an institutional shareholder after much careful consideration and for good reason. Shareholder activism led by institutional shareholders is an important aspect of corporate governance and should generally be seen as an indication that serious failings have been identified which need to be addressed in the best interests of all shareholders.
Comment: OPTI saying it intends to vote in support of the resolutions proposed by Seneca Partners comes after ProBiotix said yesterday that the proposed resolutions are “not in the best interests of your Company and come at a critical time when ProBiotix is gaining commercial traction and is at an inflexion point in its growth trajectory.”
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