Pressure Technologies (LON: PRES) has gained a £18.2m contract to supply air pressure vessels for the Royal Navy’s third and fourth Dreadnought-class nuclear submarines. They will be delivered over the next three years. This is as expected, but it provides additional confidence in forecasts and the anticipated return to profit. Steve Hammell has been appointed finance director. Full year results are expected on 28 February. The share price jumped by 16.9% to 45p.
hVIVO (LON: HVO) has won a second human challenge study contract in Asia to test an RSV antiviral drug candidate. The study will start in the first half of 2024 and will be worth £6.8m. The 2023 order book already underpins most of the revenues forecast for this year and this contract helps to underpin the 2024 figure. The share price moved up by 14% to 19.1p.
Iodine producer Iofina (LON: IOF) had a strong end to 2022, although less than 450 tons of iodine was produced compared with production of 516 tons. A high iodine price and lower than expected costs helped profit to be higher than expected. Canaccord Genuity has increased its 2022 earnings forecast from 2.5 cents a share to 3.4 cents a share. Net debt is down to $1m. IO#9 will start production in 2023.The share price is 12% ahead at 27.45p.
ImmuPharma (LON: IMM) has agreed with it partner Avion Pharmaceuticals that there should be a phase 2/3 adaptive trial for Lupuzor in systemic lupus erythematosus patients. This should start in the second half of 2023 if FDA approval is achieved. The share price improved by 6.67% to 2.8p.
In the fourth quarter, Hummingbird Resources (LON: HUM) achieved the highest level of production at the Yanfolia gold mine since the first quarter of 2020. This was around 28,000 ounces of gold thanks to the mining of higher grade areas. Production was around 51,000 ounces in the previous nine months. Yanfolia is generating cash to complete the construction of the Kouroussa project. Production would need to remain at this level to provide the additional cash required. The share price rose 8.55% to 8.25p.
IOG (LON: IOG) admits that the Southwark A2 well in the southern North Sea was not commercial because of a disappointing gas flow rate and the share price is down 38.1% to 4.95p. A second well may be delayed. The 2023 capital investment programme for all the group’s projects is being reassessed. A €100m Nordic bond matures in September 2023 and this will need to be refinanced.
Julian Baines has returned to an executive role at EKF Diagnostics (LON: EKF) on an interim basis and chief executive Mike Salter will step down from the board and concentrate on the fermentation capacity expansion in Indiana. The cost of the project has risen from $9.7m to $14.2m. The 2022 profit is lower than expected and net cash of £11.4m, including £2.4m in Russia, is below expectations. Singer forecasts 2022 pre-tax profit of £10.9m, down from a Covid boosted £23.5m in 2021, and a small fall is expected in 2023. A new chief executive will be recruited. The share price is 18% lower at 32.2p.
Oracle Power (LON: ORCP) has signed a memorandum of understanding with Emirates Global Alumnium for the potential supply of 50,000 tonnes of green hydrogen from its project in south east Pakistan. This is the majority of the 55,000 tonnes projected annual output. A deal could be signed during COP28 in the UAE at the end of 2023. A placing raised £500,000 at 0.17p a share to provide finance for the project. The share price dropped 19.2% to 0.19p.
Virtual reality technology developer ENGAGE XR (LON: EXR) is raising up to £8.8m at 4p a share. HTC has confirmed that it will subscribe an additional £580,000. The share price slipped by 14.6% to 4.25p. Net cash was €2.2m at the end of 2022, while cash burn is estimated at €400,000/month in the first ix months of 2023. Around 30% of the proceeds will be used to boost sales and marketing and the rest provides working capital. Management believes that this should be enough to reach breakeven.
Bradda Head Lithium (LON: BHL) has intersected 31.85 metres at 1.6% Li2O, including 3.21 metres at 3.74%, at the San Domingo lithium pegmatite district in Arizona. Lithium bearing minerals have been observed in three-quarters of the 36 holes drilled, so far. A follow up drilling campaign is being designed. The share price fell 6.21% to 6.8p.
