N4 Pharma (N4P), the specialist pharmaceutical company developing Nuvec®, announced the acquisition of a controlling interest, through a subscription for new ordinary shares, in Nanogenics Limited, a company with a complementary lipid and peptide-based delivery system called Liptide®, which it is using to develop a novel siRNA product targeting an unmet clinical need in the ophthalmology market. The acquisition has been funded by a placing at an issue price of 1p per Placing Share raising £350,000 (before expenses). N4P said it has been investigating potential assets to add to the Company for some time. The RNA sector is an exciting one with a lot of investor and commercial interest. The addition of the Liptide® delivery system and siRNA sequence adds significant potential value to its business. As well as glaucoma, the MRTF-B gene is also responsible for fibrosis of the liver and lung, two large areas into which Nanogenics could develop its portfolio.
Comment: It is interesting that N4P has decided that its share price is not a factor in preventing it raise money to get on with its strategy, something which perhaps says as much as anything else regarding the state of the small cap space currently.
Synectics (SNX) report an additional contract with West Midlands Police to improve response times by integrating the thousands of video feeds from many different systems operated by the National Highways Agency with SNX’s open software platform to the various control rooms. Interims to May 2023 showed a 14% increase in Revenue to £21.9m which was mainly due to a strong Oil and Gas market and this transport contract is a positive sign. Interims show a sharp increase in underlaying profits to £0.8m and EPS up 76% to 3.7p and management are confident of a much stronger H2.
Comment: The Finals to November 2023 could see EPS at 11p and the shares on a P/E 10x, at 112.5p and dividend paying its hard to see what’s not to like.
Cizzle Biotechnology (CIZ), the UK based diagnostics developer, announce its interim results for the six months ended 30 June 2023. The company said it continued to make excellent progress during the first half of 2023 as key milestones were met in the development of its proprietary assay for the CIZ1B biomarker which is highly associated with early stage lung cancer. About 5,000 people die of lung cancer every day which in part is due to the lack of simple tests that can detect cancer early and as a result lead to diagnosis when the disease is more advanced and survival rates are poor.
Comment: It is amazing that it is up to small listed companies to attempt to deliver a result on such a key aspect of healthcare – lung cancer, and perhaps at the same time, the stock market continues to value the progress CIZ has been making.
Bradda Head Lithium (BHL), the North America-focused lithium development group, announced an updated MRE at the Company’s Basin Project, Arizona. As per the Gross Overriding Royalty Agreement with the Lithium Royalty Company, this new contained LCE Tonnage which is well over the contracted threshold of 1Mt, has enabled the Company to trigger the payment of $2.5 million from LRC. The Company has requested this payment be made. BHL said the increase in LCE at Basin East Extension and into Basin North highlights the impressive potential that we have always believed is inherent at the Basin Project. The total drilled area at Basin East/Basin East Extension/Basin North still only covers 2.5km2 of our 41km2 license area at Basin and Wikieup. It believes that 2024 is going to be another exciting year of resource growth for Bradda Head.
Comment: BHL has been needing a shot in the arm for quite a while, especially in terms of its share price. Today’s news could be enough to get the ball rolling in terms of a revival.
Avacta Group (AVCT), a life sciences company, announced its unaudited interim results for the six months ending 30 June 2023. The company said the clinical data emerging for our lead pre|CISIONTM drug, AVA6000, is ground-breaking. It is seeing a dramatic reduction in the usual toxicities associated with anthracycline chemotherapy and it has clear indications that doxorubicin is being released in active form in the tumour microenvironment.
Comment: One gets the feeling that this summer was the time that AVCT got itself over the line / past the point of no return as far as AVA6000, and that the share price will reflect this going forward.
Metals One (ME1), which is advancing battery metal projects at brownfield sites in Finland and Norway, announced its unaudited interim results for the six months ended 30 June 2023. The company said the six-month period ended 30 June 2023 was incredibly busy for the Company as it worked towards completion of its IPO and concurrent acquisitions of European brownfield battery metals projects which occurred after the reporting period.
Comment: ME1 is a standout as far as its access to the central European markets, the funding profile and the carbon footprint. One would expect the stock to press home this advantage as compared to other recent mining listings.
Technology Minerals (TM1), the first listed UK company focused on creating a sustainable circular economy for battery metals, announced its 48.25% owned battery recycling business, Recyclus Group Ltd, has successfully completed the commissioning phase at the UK’s first industrial scale lithium-ion battery recycling facility in Wolverhampton, West Midlands. TM1 said it was pleased to announce that Recyclus has successfully completed the commissioning phase at its Li-ion battery recycling plant. This milestone allows us to commence commercial operations and is another step towards the realisation of its planned processing rate.
Comment: While there seem to be more stages that getting to Nirvana in term of the facility in Wolverhamption, TM1 does seem to be getting there as far as actually doing some recycling.
Ascent Resources (AST), the AIM quoted European and Latin American focused natural resources company reported its interim results for the six months ended 30 June 2023. The company said that during the Period, the Tribunal was constituted for the Company’s Energy Charter Treaty damages claim against the Republic of Slovenia. Accordingly, the Company has been working with its legal representatives, Enyo Law LLP, to prepare its ECT memorial, which was submitted post the Period under review.
Comment: Interestingly enough, it would appear that as well as being focused on natural resources, for AST, being in disputes with other entities is kind of its thing. Obviously, we are waiting on the big Slovenia win here.
Cobra (COBR), a gold, rare earth and IOCG exploration company focused on the Wudinna Project in South Australia, announced its financial results for the six months ended 30 June 2023. The company said the period culminated in what may be one of the most important developments in the Australian rare earths sector – the Boland discovery of proven ionic rare earth mineralisation in palaeo-channel which is amenable to low-cost, low-disturbance in situ recovery using well established techniques in South Australia. This is globally unique and a result of exceptional technical competency for which I congratulate Rupert Verco and Robert Blythman in particular.
Comment: Perhaps rather frustratingly to date, the market has not embraced COBR’s news regarding REE’s in terms of buying the stock. Nevertheless, one would expect the significance of what the company is sitting on to sink in sooner rather than later.
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 2023. The company said that Corporate copper bond documentation was being finalised, prior to listing on The International Stock Exchange in the Channel Islands, and anticipated closing of an initial tranche of up to $80 million.
Comment: The long awaited arrival of $80m should of course be transformational for PXC, so much so that one almost feels like engaging in a whip round to expedite the process.
Reabold Resources (RBD), the oil & gas investing company with a diversified portfolio of exploration, appraisal and development projects, announces its unaudited interim results for the six months ended 30 June 2023. RBD said the next 12 months will be exciting for Reabold with anticipated newsflow on its key assets and the expected receipt of the £9.5 million contingent payment from Shell (as the balance of the consideration for the Victory project). It will continue with its disciplined strategy to allocate capital to undervalued oil & gas assets where their development benefits from being close to existing infrastructure and there is a clear path to monetisation.
Comment: One would hope that the mention of the £9.5m arriving from Shell might focus minds on how out of kilter the share price and sentiment towards the company is with the fundamental reality. Those who are long in the tooth will be expecting the capitulation of the bulls to come very soon.
Hummingbird Resources (HUM) announced its unaudited results for the six months ended 30 June 2023 and provide details of a Group refinancing package with the Company’s financing partner Coris Bank International. HUM said its H1-2023 performance of over 51 Koz of gold produced at an H1-2023 AISC profile of $1,170 per oz and $33 million of group EBITDA. It has agreed a refinancing package with it financing partner Coris Bank, who remain committed supporters to Hummingbird’s growth platform. This package will provide additional flexibility in 2023 to allow Kouroussa to reach steady state production and provide additional capital support for the Group,
Comment: With the latest kicker regarding the refinancing package, as well as the massive $33m EDITDA, one would expect the recent base-building by HUM shares to be resolved on the upside as the autumn begins. The year’s peak near 20p seems a fair valuation given the newsflow.
Dekel Agri-Vision (DKL), the West African agribusiness company, announced its unaudited interim results for the six months ended 30 June 2023. DKL said the Palm Oil Operation is experiencing potentially its best year in terms of both relatively strong production volumes and sales price which sets up a strong full year financial performance. The Cashew Operation has significant upside as daily production volumes continue to increase since transitioning to commercial production in early 2023.
Comment: The big turnaround at DKL has been a long time coming, and it is good that the company has today reminded us that Palm Oil is flying, and that Cashew is set to add to the party. The shares do not reflect the improved fundamentals.
Sovereign Metals (SVML) released its Kasiya Pre-Feasibility Study Results. The company said it was positioned to become the world’s largest rutile producer at 222kt per annum for an initial 25 year life-of-mine. It is potentially one of the world’s largest natural graphite producers outside of China at 244kt per annum. The Project is well positioned to be a large scale, multi-generational asset with significant opportunity for further upside as only 30% of the current mineral resource is utilised in the PFS model.
Comment: SVML has been one of the best fundamental stories in the junior mining space, something which has been given added sizzle by the arrival of Rio Tinto. Given that the shares are currently lower when that de-risking event occurring, value hunters have a good play in this stock.
Atlantic Lithium (ALL), the African-focused lithium exploration and development company, announced its audited results for the year ended 30 June 2023. The company said over a 12-year mine life, the DFS outlines the production of 3.6Mt spodumene concentrate, delivering free cash flow of S$2.4bn from $6.6bn Life of Mine revenues, a post-tax NPV8 of US$1.5bn and an Internal Rate of Return of 105%. These outcomes further showcase the Project as an industry-leading asset.
Comment: The great ALL bear attack has provided an opportunity for bargain hunters in the still very hot lithium space. It will be interesting to see how long the stock can remain at relatively depressed levels, in the face of the fundamental progress the company is clearly making.
Genflow (GENF) announced its half year results for the six-month period ended 30 June 2023. The Company said it continues to maintain a secure financial position and has sufficient cash reserves until March 2025. This is inclusive of grant funding. GENF has continued to make progress with its two principal longevity programs: NASH (Non-Alcoholic Steatohepatitis) – where the Company is seeking to reverse aging fibrotic livers to normal functionality. The Company is seeking to ensure swift first-in-human trials; and Werner Syndrome – where the Company is seeking to improve the lives of patients suffering with this accelerated aging disease.
Comment: Given the reputation of biotech as being cash hungry, it is only right that GENF underlines its cash runway. That said, the company’s two key programs and progress in them should not be underestimated.
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