Harvest Minerals (LON: HMI) has made a rare earth elements discovery at its Arapua fertiliser project in Brazil and the share price jumped 120% to 2.75p. That is the highest it has been since last summer following weak fertiliser sales. There has been a better start to the year. Rock samples analysis shows rare earth elements and further work will be done to firm up the opportunity by assessing previous drilling. There are a range of rare earth elements that have shown up.
Semiconductor chips supplier IQE (LON: IQE) was more upbeat with its latest trading statement and the share price is 35.7% higher at 27.075p, which is the highest it has been for more than one year. Growth returned in the second half of 2023, but the full year revenues were 31.1% down at £115.3m and the loss was higher. Net debt was reduced to £2.2m. The customer base is being broadened so IQE is less dependent on wireless. The recovery has continued into this year.
Educational services provider Malvern International (LON: MLVN) increased revenues from £6.3m to £12.2m and moved into profit in 2023. Student numbers are increasing. The balance sheet has improved with net debt of £38,000. The share price rose 9.52% to 23p.
Churchill China (LON: CHH) still managed to increase its profit in 2023 even though the third quarter trading was weak, and revenues fell. Europe was the bright spot, with growth in ceramics sales to hospitality customers in the main markets. The UK was flat, and the rest of the world sales were lower. The dividend has been raised from 31.5p/share to 36p/share. Capital investment will improve efficiency and margins. Investec forecasts flat 2024 pre-tax profit of £10.8m and that assumes an upturn in the UK. The share price improved 8.91% to £11.
FALLERS
Weak third quarter demand at castings company Chamberlin (LON: CMH) hit profitability. Some new programmes were delayed, and other demand was lower than forecast. The renewable offshore energy sector remained strong. There has been some recovery in the fourth quarter and costs are being reduced. Prices increases have been made. The share price slumped 18.2% to 1.35p.
Yesterday’s warning that first quarter revenues at carbon brake technology developer Surface Transforms (LON: SCE) were lower than target is still hitting the share price and it has fallen a further 17.4% to 4.75p. Production yields improved in March and revised delivery schedules have been agreed. Cavendish expects a 2024 loss of £3m.
Futura Medical (LON: FUM) generated its initial revenues from the Eroxon erectile dysfunction treatment in 2023. There will be a US launch in the next 12 months. There was profit taking with the share price slipping 15.2% to 36.3p. Buying activity later in the morning meant that this was a small recovery compared with earlier in the day. The fall does not reflect the prospects for the business. Liberum expects revenues to improve from £3.1m to £10m this year. That would still produce a loss, but it does not include royalty contributions from the US. They are expected in 2025 when revenues of £18m and pre-tax profit of £2.6m is forecast.
Drug developer Sareum (LON: SAR) shares declined 10.9% to 12.25p following yesterday’s issue of subscription shares to RiverFort Global Opportunities (LON: RGO). After the issue of 2.9 million shares there is still an outstanding balance of £800,000 on the lending facility. Sareum will not make any additional draw downs from the facility.
