Taxing Our Way To Prosperity
Just 10 days to go until the Budget, and the information and misinformation continues. Part of this is of course just journalists playing with us. I remember before the last Budget in the spring there was the story that the Conservatives were set to abolish Inheritance Tax, something which made me urge my 92 year old father to keep going just a few weeks longer. This was tongue in cheek, of course. Now, we have the prospect of IHT being raised at the end of the month, so presumably he will have to live for at least another 5 years to dodge this particular bullet. I hope he makes it to 120.
AIM / IHT
IHT is a more serious factor though, for the AIM market. Ironically, even with IHT benefits this market is sinking like a stone, something which the capitalism hating Financial Times pointed out via the Lex Column on Thursday. Iraqi weapons specialist Tony Blair thinks it should be scrapped via his “think-tank”. Presumably, all champagne socialists like him would like all of the stock market to be scrapped in order to help level everyone down to the working (class) people level. Most pathetic of all is the way that the powers that be at AIM are not only adopting a “hoping for the best” approach with regard to AIM/IHT, but even suggesting that that removing this exemption would not make a difference. Given how bad things already are, they may have a point.
Ditch Work
As well as the IHT, there is the moment of truth as far as CGT, up to 39% allegedly, and presumably other horrors ready for Halloween the following day. No wonder the rich have already left and sold up, and as the Telegraph reminds us, “British men are ditching work for a life on benefits.” What a great Socialist idea, dependency on the state. In fact, not only do we have British men on benefits here, we have the working ones leaving the country. They know there is no point bothering, unless you want to be a fiscal clay pigeon.
Pulsar Helium
As I have said previously, it would appear that broker Oak Securities seems to be unilaterally attempting to re-populate the AIM market, something which apparently does not please everyone. I wait for the broker to get an award as broker of the year. Its latest contender is Pulsar Helium (PLSR), the primary helium explorer and developer, which came to AIM at the end of the week. With as much as £5m now in the kitty, and a massive proven asset under in its belt in the USA (unlike most), the timing of the move from the TSXV is timely. Making the grade as far as a Sky News interview on Friday’s debut, as well as trading at a premium to the 25p IPO underlines the momentum.
Back in August we were treated to Neo Energy’s (NEO) acquiring a 100% interest in the multi-million pound uranium and multi-million ounce gold resources of the Beisa North and Beisa South Uranium and Gold Projects. This was one of the deals of the year to date, as was dermatology group Incanthera (AQSE:INC) and its forthcoming launch of its Skin + CELL skincare range. The shares of the latter have pulled back ahead of a promised broader product launch with Marionnaud and AS Watson Group due by the end of this month. A share price rebound could be in the offing once this news is released.
However, the crown for small cap deal of the year would appear to have passed to MetalNRG (MNRG), as the company this week announced a $30m deal to buy a producing copper mine in Morocco. As usual, the downbeat London market has over-kicked the tyres on the announcement, wrongly quibbling about dilution, and completely missing the fact that the deal is backdated to the end of February this year, meaning that MNRG will get the revenues and profits in a very sweet way. I suggested that the company will sing the merits of what it has achieved from the rooftops, but so far it would seem I have to take matters into my own hands.
Also impressive this week was Oncimmune Holdings (ONC), a autoantibody profiling company. It announced a recapitalisation of the business to support its next stage of growth, following strong commercial progress including several recent contract wins, a number of which are with top 10 global pharmaceutical companies. The sizzle here was that ONC’s shares rose on the conversion of debt into equity, something that does not necessarily happen in current stock market conditions.
Georgina Energy (GEX) continued its fightback against spurious bear trader claims, as it announced a EP513 Hussar resource upgrade. The Company confirmed receipt of an updated addendum to the CPR of May 23, 2024 from an Independent Competent Person following the synthesizing of new seismic data, which greatly improves its understanding of the deeper structure at Hussar. All of this underlines the way that the newsflow here is compatible with a company whose multiple workstreams look set to deliver for shareholders.
Another intriguing situation for a couple of reasons remains Eurasia (EUA). The company recently announced that it had entered into a trade finance loan agreement with Sanderson Capital Partners Limited for up to £2.5 million. This steadies the ship financially. But it was the mention of a potential secondary Kazakhstan listing this week that could be a decent catalyst going forward. This is especially for those who believe that Donald Trump winning the US presidential election could soothe the Russia / Ukraine war. Christian Schaffalitzky, Executive Chairman, will provide a live investor session via the Investor Meet Company platform on Wednesday 23 October 2024 at 12:00pm BST. https://www.investormeetcompany.com/eurasia-mining-plc/register-investor
Asiamet Resources (ARS) may have faced a limp UK market into its public Bookbuild. But the company has successfully completed its $3.55 million fundraise with support from major shareholder DOID, management, and its retail shareholders. While the retail portion of the raise probably came in a little lower than expected perhaps due in part to current market uncertainty around capital gains tax increases – it remains a respectable result seeing the company well capitalised again. Investors are deserving of a sentiment shift. The ball is firmly in Asiamet’s court now. As it moves into the final stages of optimisation for the BKM Copper Project and prepares for financing discussions in Q1 2025, the company is expected to deliver key milestones that should help restore sentiment.
Finally, this week’s Weekend Markets featured serial entrepreneur David Lenigas. Apart from myself not being able to get a word in edgeways, I had to be a good listener, Big Dave was very informative on crypto mining, Vinanz (AQSE:BTC), and life in general.
Author
