Two Party Tyranny
As the General Election comes closer, it may be argued that the electorate of whatever persuasion may well be asking what they have done to deserve all of this? As opposed to the days of old, we seem to be offered painful choices on both sides. Reform may be sweet for some, but then it apparently has no chance of ever being in a position to enact its policies. Labour can only raise taxes, at a time when we all know there is a mortgage timebomb. Once again it is the middle class who are set to get it in the neck. All it can do is hope that Labour will be able to deliver improvements in welfare and the NHS, even though both of these areas have proved to be bottomless pits of spending. What will break the two parties / same policies system?
Small Cap Awards
As far as the small caps area is concerned, it could have been the case that the highlight of the week was the Small Cap Awards. I have attended on and off over the years, as I am such a fan of the space. In addition, I know now so many of the runners and riders, and pay many of the service providers who sponsor the event. However, despite my enthusiasm, when I get there is the vibe is of a party that perhaps should not have attended. I am still trying to work out why?! In the meantime, this year I took a break from the event, in the obvious absence of any invite. Sometimes the stock market really does appear to be not so much a mafia, but at least a closed shop, even for those who love it. This might be one of the reasons that the UK stock market is not the US stock market – as people for whatever reason do not get involved. Indeed, as of 2024, and after 35 years of trying, my advice to the young who are not of the right demographic is not to bother.
Incanthera
A company which would have been my Aquis stock of the year is Incanthera (AQSE:INC). Indeed, it was one of my stocks of the year for 2024 when it was 6.5p, with a 15p price target when mentioned at the start of January. The stock is now 27p, after a successful £4.1m raise, and the launch of Skin + CELL with Marionnaud. Revenues from the first production order are expected to increase from c.£2million to c.£4 million, versus the current market cap of £15m. Indeed, someone this week told me how good he thought the PR / IR from the company is. Perhaps this is analogous to telling Paul McCartney that one has written a good tune. But the reality is that INC is one of those companies where you did not have to be Warren Buffett to know it was going to be a winner. So for those in PR / IR it was and is, an open goal.
Helix
Arguably, even more successful in terms of an IPO has been and continues to be Helix Exploration (HEX). Rather than the bucking bronco ride of Helium One (HE1), the company has been a 10/10 on the PR / IR front, and this week delivered in terms of the newsflow. The highlights of its scoping study were: NPV8 of $303.1 million using a helium price of $550/Mcf and grade of 1.50%. Initial CAPEX requirement of only $19.7 million. Net revenue of $605.6 million (after CAPEX, OPEX, tax and royalty) over 29-year LOM. The low CAPEX is stunning, and it is not a surprise that this week the shares peaked at 27p versus their 10p IPO price.
Pulsar Helium
Sticking to the ultra hot helium space, I interviewed Thomas Abraham-James, President & CEO of Pulsar Helium (TSX-V:PLSR). The shares have had a rug pull despite on Monday reporting further results from its ongoing exploration program at its Topaz project in Minnesota. Flow rate of up to 821,000 cubic feet per day with helium grade between 8.7-14.5%. 162 psi (1,117 kpa) bottom hole pressure. 70% pressure rebound within the first hour of post-flow shut-in. The company said the fast build-up of pressure is regarded as highly positive, suggesting that there is a significant volume of gas present. One can understand some investors might quibble regarding one piece of data or the other, but the bottom line is that this is the most significant new helium find in North America ever.
Raspberry Pi
A fresh IPO which has gained decent retail traction is Raspberry Pi (RPI). While we should all be thankful that London has a new, significant and successful IPO, it was also interesting from my perspective that the shares appear to be in a trajectory to 540p. This compares to the Friday close of 426p – after a peak of 498.5p. So some people were sucked in rather high. But on what charting information we have at the moment, the key support level is 420p. The risk is that below 420p we head down to the 380p – 400p zone.
Oracle Power
One of the more difficult small caps to embrace in recent years has been Oracle Power (ORCP). This week it announced the acquisition of the Blue Rock Valley Copper and Silver Project in Western Australia. Judging by the share price reaction, this move was welcome, and after the Northern Zone deal almost makes one wonder why the company has not historically done more of these bite sized deals.
Helium One
Once again we were having to applaud Helium One (HE1) for raising a large amount of cash – £8m, and for those who were involved in the placing at 0.5p, see the stock rebound very well. Indeed, the shares hit as high as 0.785p, so a punchy percentage return in just a few days. Whatever the eventual outcome of the company’s helium foray, the lesson here is who dares, wins as far as raising money to advance its plans.
Electric Guitar
Digital marketing group Electric Guitar (ELEG) finally bounced back after effectively halving since coming to market after a RTO. The issue here may have been not so much any quibble with the company’s concept / strategy, but the way that very often after a RTO there are legacy shareholders who want to head for the exit. What will be interesting to see here is how much of a recovery the stock may be treated to once the last of the sellers is out.
Ariana Resources
It was great to catch up again with Kerim Sener, Managing Director, Ariana Resources (AAU), after knowing him for 20 years it is great to see AAU hit the big time.
Rome Resources
Rome Resources (TSXV:RMR) was another interview of interest after it was announced that it will RTO onto the London market via Pathfinder Minerals (PFP). As I suggested in the interview, this will bring in Pathfinder shareholders into land successfully after a long journey to a company which should be a decent winner via tin production in DRC.
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