Novacyt shares rally over 66% following launch of coronavirus detection test
Novacyt SA (LON:NCYT) shares have rallied as the firm announced that it has made progress in battling COVID-19, the most recent strain of coronavirus which has spreading vastly.
COVID-19, now its formal name as declared by the World Health Organization has been running riot across the globe.
The outbreak was first reported in December, and since that time the number of affected people, deaths and cases has continued to climb across the globe.
The new strand of coronavirus has been detected in China, Hong Kong, Japan and most recently the United Kingdom. It seems that a few weeks on from the initial scares off the coronavirus, that the situation is slowly being controlled.
Today, Novacyt SA have said that it has launched a CE-Mark approved molecular test for the detection of the coronavirus (COVID-19).
CE-Mark allows a company to register their product in compliant with the European Unions safety, health and environmental requirements.
The update today will not just please shareholders, but the global business environment and world citizens.
The firm said that the COVID-19 test is the first CE-Mark test for the 2019 strain of novel coronavirus and follows the company’s rapid launch of its research use only coronavirus test on January 31.
Novacyt added – “As a result of the CE-Mark, the Company’s COVID-19 test can be used directly by laboratories and hospitals for the testing of patients without the need for validation by clinicians. The Company anticipates increased demand for its test for COVID-19 due to this extended use for clinical diagnosis.”
The company has already received requests for quotations for 288,000 tests since preordering was made available on Friday. Novacyt noted that they had seen “high conversation rate” from quotations to orders.
Assessing the situation, the firm also said “However, it is difficult to predict how demand for the test will grow as the epidemic is still in its early stages.”
The coronavirus, or COVID-19 is still at large, and many businesses and people have fallen victim to the lethal illness.
Progress from the private sector will help the containment and stop the spread of the disease, however Matt Hancock did say a few weeks back that the coronavirus could still be around for a few months.
Graham Mullis, Chief Executive Officer of Novacyt commented:
“I am very pleased to announce the launch of our COVID-19 CE-Mark test, which we believe is the first CE-Mark approved test for clinical diagnosis of the 2019 strain of the novel coronavirus. As with our research use only test, it can produce a result in less than two hours, with the added efficiency of being able to transport the test at ambient temperatures eliminating the need for cold chain shipping. It is designed to run on multiple instrument platforms commonly used by clinical laboratories around the world, which ensures our COVID-19 test can be used by the largest possible number of clinicians. We look forward to continuing to support clinicians in the fight to contain the spread of the novel coronavirus during this public health emergency.”
Analysts pointed out that this a competitive space and while Novacyt have provide a winner for investors so far, caution should be taken given the recent rally.
“The share price has already started to move on expectations and so the next leg higher could really come into play if they receive the approval they are looking for. This area is not without competition and let’s be clear the competition is fierce in the sector. The race to get approved is strong and AIM’s stocks can be fickle. That all being said Novacyt is not a one trick pony and have plenty of other assets in the market. As with any AIM-listed company, caution needs to be exercised and whilst Novacyt are winning the race at the moment this could easily change,” said John Woolfitt, Director of Trading at Atlantic Capital Markets.
Shares in Novacyt trade at 165p (+66.69%). 17/2/20 16:33BST.
Kavango Resources sign joint venture agreement with LVR Geo Explorers
Kavango Resources PLC (LON:KAV) have told the market that they have signed a joint venture agreement for two licenses in Botswana.
The form said that the two prospective licenses are situated within the Botswana section of the Kalahari Copper Belt.
The copper miner said that the first licence is north of MOD Resources Ltd T3 mine development and is completely surrounded by MOD, Metal Tiger PLC (LON:MTR) and Sandfire Resources NL licences.
The second licence is closer to the Namibian border, which is south of the Trans-Kalahari highway.
The joint venture is with LVR Geo Explorers, and the deal will provide staged in for Kavango Resources. Additionally, this will give Kavango the chance to earn up to a 90% interest in both of one of the prospective licenses.
When the deal is formalized and completed, Kavango will be obliged to spend £92,000 on each of the licenses to acquire 25% stake in the projects.
Notably, this money will have to be paid within the first twelve months of signing the agreement.
There is also an option for Kavango to extend their interest by further expenditure across three stages, which will allow a total interest of 90%.
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
“The signing of the JVA with LVR represents an excellent opportunity for Kavango to acquire an interest in some highly prospective ground in the KCB area, which is now regarded as one of the world’s most promising under-explored copper provinces. Our exploration program will start shortly. We believe that the JVA with LVR represents excellent value for shareholders, who now have the prospect of acquiring an interest of up to 90% in these PLs. We will continue to consider other opportunities in this exciting copper province in the coming months.”
Kavango also noted that exploration of these licenses will commence shortly, and the firm will be the mangers of the exploration and development but will have the option to withdraw at any time following a two month notice period.
Shares in Kavango Resources trade at 1p (-10.91%). 17/2/20 16:19BST.
Petra Diamonds shares crash 16% following weaker diamond market
Petra Diamonds Limited (LON:PDL) have seen their shares plummet as the firm issued a warning this morning.
Shares in Petra Diamonds trade at 6p (-16.67%). 17/2/20 13:17BST.
The diamond firm said that it has cut its cash flow targets as the diamond market has weakened.
The CEO commented: “Our financial results for H1 were impacted by the weaker diamond market, with rough diamond pricing on a like-for-like basis down ca. 10% from the comparable period, and down ca. 3% versus pricing achieved in Q4 FY 2019.”
Petra alluded to the ongoing global health problems, particularly with the coronavirus which have dampened consumer confidence and hindered trading.
It was notable that Petra said that they may need further support from lenders, in the form of waivers on banking covenants.
“In light of the impact of the weakness in the diamond market on the group’s operating results and cash flow position, the group will continue closely monitoring and managing its liquidity risk and will have further discussions with its lender group regarding further covenant resets and/or waivers.”
“Based on current forecasts and sensitivities, additional waivers are likely to be required for the June and December 2020 measurement periods.”
Petra has targeted a delivering cumulative cash flow of $150 million to $200 million by June 2020, but following issues with the coronavirus this has now been reduced to the $100 million to $150 million range.
Petra remained optimistic and said that it is on track with its plans to increase cash flow generation, and that the firm has already reached $50 to $80 million currently, however delays can be expected.
The firm said: “In light of this continued market weakness, coupled with the impact of adverse product mix, the delivery of Project 2022’s cumulative cash flow target is expected to be delayed.”
Notably, Petra recorded net debt of $596.4 million, which showed a 6.6% rise from the figure one year ago.
The warnings from Petra alluded to a 6% fall in revenue totaling $193.9 million, which the firm said was caused by a fall in the price of rough diamonds.
On a better note, production rose 3% to to 2.1 million carats which will please shareholders.
Richard Duffy, CEO of Petra, commented:
“Petra has delivered a strong operational performance in H1 and we remain on track to achieve production guidance for the full year of ca. 3.8 million carats. Our priority now is to continue to drive operational improvements to optimise production and free cash flow, with the aim of reducing leverage levels against the backdrop of a challenging diamond market.”
Pretax loss narrowed to $13.2 million following a loss of $20.7 million one year ago, which does show progress for the firm. This was due to lower costs and the non-repeat of $14 million of foreign exchange losses.
Petra concluded by saying that the first half operational performance has been strong and that this puts the firm on track to beat full year production guidance of around 3.8 million carats.
KEFI Minerals reach agreement to commence Tulu Kapi
KEFI Minerals plc (LON:KEFI) have said that the Tulu Kapi project in Ethiopia has been given the green light.
The miner told the market that a meeting had taken place of the joint venture company, and now that formalities and agreements had been made the project can commence.
KEFI are looking to develop the Tulu Kapi project as part of Tulu Kapi Gold Mines Share Co, and at the general meeting all discrepancies and negotiations had been completed.
This means that the partners can go ahead with the closing of subscription funds with ANS Mining which will provide $38 million funding. The Ethiopian Government have also pledged $20 million on the project.
Harry Anagnostaras-Adams, the executive chair at KEFI and of TKGM, said: “The formal TKGM shareholder meeting was an important step for this closely co-ordinated public-private-partnership for Ethiopia’s first modern mine in decades and has now cleared the way for the closing of the ANS equity subscription.
“The Tulu Kapi gold project is planned to be the largest single export generator in the country and all project planning is designed within the multi-party consortium to make our project a model first-mover in all social, environmental, human resource and technical aspects.”
KEFI’s approval from ANS Mining
At the start of the year, KEFI announced that they had won approval from ANS Mining for their Tulu Kapi subscription agreement. The firm said the company operating the project, Tulu Kapi Gold Mines Share Co, will now receive the first tranche of ANS Mining funding of $9.5 million. “Kefi greatly appreciates the confidence and commitment demonstrated by ANS Mining, its board of Ethiopian business leaders and its underlying shareholders, which comprise a broad syndicate of strong organizations in the local banking, insurance and investment sectors,” the company said. After months of toil and work for KEFI, it seems that operations at the Tulu Kapi Mine will now go ahead. KEFI will see this as a great victory. Both shareholders and the firm will hope that the last few months of negotiations and agreements on this site will be rewarded with strong discoveries and results. Shares in KEFI Minerals trade at 1p (+1.06%). 17/2/20 13:04BST.Rio Tinto cut annual shipments guidance after damage from Cyclone Damien
Rio Tinto Plc (LON:RIO) have lowered their annual shipments guidance on Monday following external conditions affecting operations.
The firm said that shipments are expected to be lower at its iron ore operations in Western Australia following damage caused by Cyclone Damien.
Across 2020, the FTSE 100 lister miner now expects shipments at its Pilbara operations to be between 324 million and 334 million. Notably, this sees a formidable slump from previously guided range which was in the 330 million and 343 million ball park.
In 2019, Rio Tinto reported iron ore shipments at Pilbara of 327 millions which saw a 3% slip on 2018.
Again in 2019, the firm was affected by weather alongside structural and operational challenges in the first half of the year.
The firm said: “Rio Tinto’s iron ore operations in the Pilbara, Western Australia, are progressively resuming following the passing of Tropical Cyclone Damien. The cyclone caused infrastructure damage across our entire Pilbara network, including impact to access roads, electrical and communications infrastructure and accommodation. All mine sites experienced some disruption and will take time to return to normal operations.
Safety remains our top priority as we ramp up operations, and undertake the necessary remediation work, following the passing of the cyclone.”
Rio Tinto’s South African safety concerns
In December, the firm gave another update which alluded to the safety aspect of their operations. Rio Tinto gave the market a cautious outlook over safety concerns at its Richard Bay Minerals unit in South Africa. Rio Tinto said it has shut down the project over fears for the safety of its employees due to an “escalation in violence in the communities surrounding the operations”. The miner said it will contact its customers to “minimise potential disruptions”. As a result of this, Rio said its titanium dioxide slag production in 2019 will be at the bottom end of the guided range of 1.2 million tonnes to 1.4 million.Financial pledge to ERA
A few weeks before ago, Rio Tinto also made a pledge to the ERA to clean up and close the Ranger uranium project in the Northern Territory of Australia. Rio own a 68% stake in ERA and will look to assist them in the clean up and eventual closure of the Ranger operation. ERA has been looking to raise AUD476 million, or $323.4 million, to go towards the plan, but the firm has been unable to secure third-party underwriting support, so Rio Tinto will step in to “ensure ERA has the funds it needs”. ERA are set to end the Ranger project by January 2021, and clean up the side within five years of this date. Shares in Rio Tinto trade at 4,227p (+0.73%). 17/2/20 12:45BST.Oil prices remain stable despite Japan recording ecomomic 6.3% contraction
Oil prices have been relatively stable on Monday, as the fears of the coronavirus are starting to be cleared up.
The coronavirus has no doubt been affecting the price of global commodities and currencies over the last few weeks, as businesses and investors have remained cautious.
Last week it was announced that there were people in the UK who had been diagnosed with the coronavirus, however the situation was seemingly under control.
Oil prices have remained flat on a relatively quiet day for markets on Monday. Concerns of falling fuel demand following the coronavirus have now been offset giving a chance for oil to steady.
The price of West Texas Intermediate is $52.07 seeing a modest 0.04% rise, whilst Brent Crude has slipped by 0.17% trading at $57.22.
In the global economy elsewhere, Japan reported an economic contraction of 6.3% in the period between October and December and further contraction is expected by market analysts and traders.
Japan is the fourth largest oil consumer, possessing an industry base which accounts for a notable proportion of global production.
Last week, the International Energy Agency noted that the coronavirus may cause oil demand to fall by 435,000 barrels per day in the first quarter of 2020.
Notably, this would be the first quarterly drop since the financial crash in 2009. However, there still could be stimulated demand following the progress made in containing the coronavirus.
OPEC are also planning to approve more production cuts to decrease global supply and support prices, if this does happen then the price of derivatives could rise which may allow oil prices to bounce back following a bleak few weeks.
OPEC+ have agreed to cut oil output by 1.7 million barrels per day until the end of March, however technical committees are still discussing the extent to which the cuts should be made following a period of volatile prices.
Sound Energy’s Morocco deal is put on hold
Sound Energy PLC (LON:SOU) have seen their shares dive as the firm gave an update on its operations in Morocco.
The firm said that it has not yet seen proof of funds from a private energy firm who agreed to buy its assets in Morocco in November.
Sound Energy told the market that the deal had allowed the private firm to buy exclusivity on these assets and that due diligence had been completed.
The firm added that the buyer has not been able to show proof of funds, which meets the companies expectations.
Following this delay, the completion of the deal is now expected to be put back until the private energy firm can show that it has the capital to make the purchase.
Sound said: “The Purchaser has not yet demonstrated to the Company’s satisfaction the proof of funds required in order to advance the Proposed Transaction and nor has a sale and purchase agreement been finalized.”
Whilst this issue continues to develop, the firm said that they are prioritizing a “micro” liquefied natural gas production plan at the Te-5 Horst field on the Tendrara concession to generate early cash flow.
Sound Energy have remained confident for this field to produce gas results within the first few months of 2021, and as operations commence larger development procedures can happen.
While discussions with the potential purchaser continue, the board has been active in considering and refining in parallel other options to monetise its asset at Tendrara. We continue to believe that we have a valuable position in the Moroccan energy sector encompassing a significant discovery in Tendrara with exciting additional exploration upside potential,” said acting Chief Executive Mohammed Seghiri.
“The micro LNG development plan has been identified as an initial and rapid development strategy to prioritise early monetisation of the existing gas discovery, which can in turn facilitate a larger ultimate development. I look forward to reporting further on our progress in due course.”
Sound Energy announce deal in November
The deal which has been stunted today was initially announced in November by Sound Energy. A few months back, the firm said that the deal would be valued at $112.8 million. Sound Energy reported that the announcement was made to sell its Moroccan portfolio, the company has since entered into non-disclosure agreements with 23 companies and which resulted in the company receiving a number of non-binding offers. This was to finalize a binding sale & purchase agreement for 51% of Sound Energy’s stake in the eastern Morocco portfolio for $112.8 million. The company said it will also provide the undisclosed purchaser with a one-year option to acquire a further 9% of Sound Energy’s remaining interest in eastern Morocco portfolio, which has now been put on hold following the update today. Shares in Sound Energy trade at 1p (-23.46%). 17/2/20 12:04BST.Can Greatland Gold continue its surge?
Greatland Gold (LON:GGP) have seen an impressive few weeks of trading, and their shares have consistently stayed in green.
Shares in Greatland Gold trade at 3.9p (-2.50%). 17/2/20 11:24BST.
Greatland have seen a 52 week change of 130.55% in their share price, which has reflected a strong period of trading combined with a feeling of shareholder optimism.
The 52 weeks share price high has been noted at 5.89p whilst lows have been recorded off 1.47p.
The 50 day moving average stands at 2.86p and the 200 day moving average is slightly lower at 2p.
The question that many shareholders and investors are wondering, is whether Greatland can hit the 5p mark and break their own expectations.
Greatland’s recent updates
The firm in December reported that it had made progress in Australia, where the majority of its operations lie.
The results “significantly” extend the zones of existing high-grade mineralisation at the licence, Greatland said, to the north. In one hole, it found 107 metres at 2.2 grams of gold per tonne of ore, including 21 metres at 10 grams.
Following this, Newcrest Mining Ltd (ASX:NCM), which carried out the work at Havieron, has finished a $10 million first stage of a farm-in agreement, and a second stage also worth $10 million of expenditure has now begun.
Tasmania success
A few weeks on, the firm reported mineralization at another site in Tasmania.
The firm said that further drilling at its wholly owned Firetower project in Tasmania confirmed the presence of additional broad widths of shallow gold mineralization.
Greatland added that it completed a systematic grid-based drilling programme at Firetower, comprising 14 diamond holes with depths from 50 metres to 160 metres, for a total of approximately 1,530 metres.
The program was designed to test the main zone of gold mineralization and results to date have confirmed broad widths of gold mineralization.
Gervaise Heddle, chief executive officer, said: “We are pleased to report a second set of positive results from our recent drilling campaign at Firetower. They show a further improvement in the continuity between drill sections and highlight the potential for a robust, near-surface gold system.”
Primorus Investments hail Greatland
Last week, Primorus Investments (LON:PRIM) praised Greatland Gold as one of their drivers of success in their final quarter of 2019.
Primorus told the market that they had invested £625,000 into Greatland Gold, and this initial investment has now trebled to be valued at £1.9 million following a string of success for the gold miner.
The potential profit from its investment in Greatland stands at £1.3 million, and Primorus tips the investee’s share price to rise even further.
The appraisal certainly would have won shareholder confidence, and this would have given Greatland more confidence to deliver consistent results across 2020.
Price of Gold still rising?
One thing that could allow Greatland to break their expectations is the price of gold which has seen a recent bounce back over the last few months.
The price of gold is still climbing across global markets, and hovers around the $1,583.30 mark per ounce.
Researchers have said that prices of gold are yet to reach a prime phase of its price consolidation, however analysts and traders are expecting this to be in the near future.
One thing is for sure, gold prices will need some time before the market does see a surge.
However for Greatland, the future looks very bright and certainly following a strong run of results there can be high optimism for the firm to breach the 5p mark.
On 3/2/20 Numis Recommended a ‘Buy’ stance for Greatland Gold, with a target price of 6p.
William Hill appoint current DS Smith CFO as Executive Director
William Hill (LON:WMH) have announced the appointment of a new Chief Financial Officer on Monday morning.
The online and in-store bookmaker said that DS Smith’s PLC (LON:SMDS) current CFO Adrian Marsh, is set to join the company.
“Adrian has been a committed, professional and loyal DS Smith colleague. I have greatly enjoyed working with him on both a professional and personal level for the last seven years. He will leave with our gratitude for his contribution to the group and our very best wishes in his new venture,” said DS Smith Chief Executive Miles Roberts.
William Hill said that Marsh will join the company and be appointed as an Executive Director to the William Hill Board later this year.
Notably, the company’s current CFO, Ruth Prior will be leaving the Company to join Element Materials Technology.
William Hill praised the prior experience of Marsh, saying that he had been Group CFO at DS Smith for the past seven years.
Under the guidance and leadership of Marsh, DS Smith won an elite promotion from the FTSE 250 to the FTSE 100.
Marsh also serves as a is a Non-Executive director of John Wood Group PLC and chair of its Audit Committee. He was previously Group Director of Tax, Treasury and Corporate Finance of Tesco PLC.
CEO Ulrik Bengtsson said: “I am delighted to welcome Adrian to the Board. As a proven CFO of a FTSE listed company with M&A, deal execution and multi-sector finance experience in US & European markets, he will be able to make a significant contribution to William Hill in the enablement of the strategy and is a great addition to the team”.
Adrian Marsh commented: “I am extremely excited to be joining William Hill at such a key time in the Company’s history, and look forward to supporting Ulrik and the rest of Board in delivering their growth plans for the future”.
William Hill concluded by saying that they will announce the formal appointment of Marsh and the departure of Ruth in due course.
William Hill – CBS Sports Deal
One week ago, William Hill told the market that they agreed a deal with CBS Sports in the US. The bookmaker said that the partnership is set to roll out in March on digital platforms that broadcast CBS Sports, as a full rollout is expected later down the line. CBS have said that they will use William Hill’s odds, experts and sports books to increase their digital offerings and expand their presence in the US Sport broadcasting market. William Hill will also exploit benefits including the exclusive rights to promote its brand across CBS’s range of digital platforms and networks. Becoming the official sports betting provider to CBS is another major step forward for William Hill in our US expansion,” said William Hill Chief Executive Ulrik Bengtsson. Shares in William Hill trade at 181p (+0.64%). 17/2/20 11:14BST.French Foreign Minister expects ‘bruising battle’ Brexit negotiations
The French Government, who are a major negotiator at the EU table have told Britain that they should expect ‘a bruising battle” with the EU.
It has only been a few weeks since January 31st, where it was announced that Britain would be formally leaving the EU.
Following months of elections, campaigns and flirting with the thoughts of a second referendum, Brexit was finally ‘happening’.
Today, the French Foreign Minister Jean-Yves Le Drian told the media that they expect both parties to ‘rip each other apart’ as they looked to gain the high hand in Brexit.
Alongside Germany, the French Government have always had a strong voice at the European Union table and certainly it seems that PM Johnson will be put through his paces.
Johnson told the British people that he wanted to agree a deal which will put the British people first, and that no concessions would be made with the EU to ensure that the best possible exit deal would be materialized.
However, the French Government and others have seemingly had a say and this may not be as easy as once thought.
Le Drian also noted that it could be tough for the UK to reach its free trade deal by the end of the year, following the Brexit deadline deal.
The UK Government has taken a fairly placid approach to these comments, and said that it wanted to base a deal on “friendly co-operation between sovereign equals”.
David Frost, who is Chief Brexit Negotiator is expected to give further details of Britain’s aims and ambitions later today. Here it will be seen as to whether PM Johnson has got his side of negotiations correct, and whether ambitions are realistic.
The French Foreign Minister continued to add that the two parties had been polarized in their negotiations.
He commented: “I think that on trade issues and the mechanism for future relations, which we are going to start on, we are going to rip each other apart.
“But that is part of negotiations, everyone will defend their own interests.”
The French representative joined European Commission President Ursula von der Leyen and chief negotiator Michel Barnier by saying that the Withdrawal Bill will take a lot longer than that was expected by the British Government.
A Downing Street spokesperson said: “Our approach is clear – we are not asking for anything special, bespoke or unique, but are looking for a deal like those the EU has struck previously with other friendly countries like Canada.
“We want a relationship based on friendly cooperation between sovereign equals, one centred on free trade and inspired by our shared history and values.”