Cora Gold shares sink 9% despite positive Mali update
Cora Gold Ltd (LON:CORA) have seen their shares fall over 9% following an operational update announced today.
The firm said that drilling in Southern Mali had produced significant” mineralisation away from the existing resource.
Cora has been targeting shallow oxide extensions beyond the existing work at the Sanankoro gold project.
The current resource stands at an estimated 5.0 million tonnes of ore, containing 265,000 ounces of gold from a grade of 1.6 grams of told per tonne of ore.
The company also said that they have seen a 1,500 metre-long gold structure as a continuation of Zone B North, as well as 500 metres of new mineralisation along strike to the west of Zone C.
Bert Monro, CEO of Cora Gold, commented,
“This latest round of drill results has identified a new +1,500m long gold structure representing a continuation of Zone B North. This is particularly encouraging given that the shallow drilling undertaken is only designed to provide a guide to the location of the structures. This has similarities to early results from Selin before deeper holes were drilled, and a maiden Resource was declared. Additionally, a further 500m of strike to the west of Zone C was also identified as a new mineralised zone. I look forward to releasing the remaining results from this programme once they are received.”
Wey Education bounces 15% with turnover ‘significantly ahead of forecasts’
Online educational services provider Wey Education (LON:WEY) updated its shareholders on its current trading position, which it described as strong.
It said both its InterHigh and Academy 21 offerings started the financial year with strong performance. It added InterHigh’s b2b sales had been ‘higher than anticipated’.
Wey Education continued, saying that its turnover for the year ended 31 August 2020 is expected to be ‘significantly ahead of market forecasts’, in excess of £7.5 million.
This turnover growth, if realised, would represent an increase of 25% on the year ended 31 August 2019.
The company said its Directors would continue to invest in marketing to enhance future growth and are actively investing in senior operational executives in marketing, education and Information Systems.
Wey Education response
Commenting on its outlook and strategy, the company’s statement continued,“The board is taking advantage of the increased turnover to invest in these areas at a greater rate than initially planned to accelerate its growth plans. Notwithstanding the additional cost of these investments the Company still expects to meet market forecasts for profit for the current year ending 31 August 2020.”
Responding to the positive overview, company Chairman Barrie Whipp, commented,
“The strategy established in 2019 to deliver excellent online education to an increasing number of students is clearly working. Our brands, InterHigh and Academy 21 are both growing at similar rates. It is entirely logical that, with our substantial cash reserves, we continue to seek further growth through investment in quality and marketing. The appointment of new senior executives is being covered by our enhanced revenues, as is the increase in marketing expenditure. This allows the Board to project further growth with optimism.”
Investor notes
Following the update, the company’s shares jumped 14.89% or 2.41p to 18.56p per share 25/02/20 13:01 GMT. The Group’s p/e ratio is high at 64.60, their market cap stands at £25.63 million.Atlantic Capital Markets see further upside in Greatland Gold
One of the hottest stocks on the market right now is Greatland Gold plc (LON:GGP).
Last week, I wrote stating my confidence that Greatland had the potential to break their barriers and produce a fine year of trading across 2020.
John Woolfitt, from Atlantic Capital Markets has been praising the recent performance of Greatland Gold, and it is interesting to note that he recognized the stock early – when he brought it to the attention of his clients in 2017.
Woolfitt has a lot of experience in the industry and knowledge of wider global markets. He has held his role as Director of Trading at Atlantic Capital Markets for almost four years, and has also worked as an Equities Derivatives Trader – and he has identified Greatland to be a very exciting stock.
He identified that Greatland Gold was very different from many other AIM listed gold miners, describing market competitors as having “flash in the pan” moves.
Woolfitt added that Greatland itself – “has got a large footprint in the Havieron region and it’s got a track record of success. The company has identified several high priority targets close by as well.
Scallywag for one, an area only a short distant from Havieron, and the preliminary work at Goliath is now also showing similar geophysical and geochemical signatures to those seen in the early work at Havieron”.
The Paterson Project includes the Havieron, Black Hills and Paterson Range East licences, covering over 385 square km of under-explored ground in the Paterson Province in Western Australia.
This region had high potential for intrusion related gold-copper systems such as the Telfer deposit, which was mentioned by Atlantic Capital Markets.
There was much praise for Greatland, as they identified multiple targets across its licences and recent drilling has demonstrated the potential for one such target, Havieron, to represent a very large mineralised system.
The Havieron prospect is strategically located 45km east of the major Telfer gold mine, and 500km east of rail and port infrastructure at Port Hedland – and may new exploration license applications have been made due to the high potential of the site.
Woolfitt commented:
“The AIM market is a fickle environment and moves are fleeting, largely due to a lack of volumes and a lack of reporting clarity. However, Greatland’s prospects look to be far superior than other miners in this market. The reality is that the prospects for Greatland gold are high quality and if it can be pulled out of the ground also of a significant quantity. There is also significant strong noise from Newcrest who are the joint venture partners over in Australia. In fact they have been so impressed with the prospects that they have opened the taps to drilling in the region in an effort to have resources moving out of the ground by the end of the year. And let’s be clear on this, Newcrest is no minnow with a market cap of $20bn+
However, if you have been around the markets as long as I, then you will surely know it is never as simple as it might seem. It takes more than just numbers to really make a difference and with the only target price out in the market being 6p the short-term upside is stunted. That being said, the price of gold also plays its part and any drop in gold could temporarily weigh on the share price and give investors the entry level required. This year is going to be an interesting year for the company and if all goes to plan, we could be looking at a significantly different price by the end of the year.”
Greatland Gold is certainly an exciting stock, and many market analysts think that this is only just the start for the AIM listed miner. It will be certainly interesting to see how the firm reacts to all the expectations and media speculation.
Triple Point Social Housing REIT acquires six properties & care home for £18.3m
The Board of Triple Point Social Housing REIT (LON:SOHO) announced on Tuesday that it had completed a block acquisition of several properties across England.
The company acquired six housing properties and a care home, for a consideration of £18.3 million, excluding costs.
Its acquisition comprises a total of 91 units in total, 43 of which are in the West Midlands, 40 in Yorkshire, 5 in the South East and 3 in the North West.
Continuing their update, the Triple Point Social Housing REIT statement read,
“The Group has entered into new FRI leases in respect of each of the properties acquired for periods of between 20 and 35 years. These leases are with specialist housing associations regulated by the Regulator of Social Housing or care providers regulated by the Care Quality Commission, including Falcon Housing Association and Inclusion Housing.”
The company continued, saying that rents received under the leases are subject to annual, upward-only rent reviews, that would increase in line with the Consumer Price Index.
It said its properties comprise ‘specialist, high quality homes’ that require specialist care for mental health and other needs.It finished by saying that the properties acquired today generate net yields in line with the company’s investment criteria and returns profile.
Following the update, Triple Point Social Housing REIT shares rallied 0.72% or 0.70p, to 98.50p per share 25/02/20 25/02/20 12:22 GMT. Analysts from Berenberg initiates their ‘Buy’ stance on the company’s stock. The Group’s p/e ratio stands at 43.08, their dividend yield is impressive at 5.02%.
Previously within the same field, we reported that Impact Healthcare REIT PLC (LON: IHR) had acquired a care home in Bristol for a consideration of £6.95 million.N4 Pharma narrow loss across 2019
N4 Pharma PLC (LON:N4P) have told the market that their loss has narrowed for 2019, as the firm delivered their final results on Tuesday.
The firm added that it is working to improve Nuvec dispersion to address in-vivo inconsistencies.
The firm said “The data we have generated so far is encouraging and shows that Nuvec® has the potential to be an effective delivery system for nucleic acids.”
Nuvec is N4’s company vaccine and cancer treatment delivery system. N4 has repeated a pre-clinical study of Nuvec due to inconsistencies identified in third-party pre-clinical studies.
Across 2019, N4 reported a pretax loss of £948,725, from a loss of £1.4 million recorded a year ago. Notably, no revenue was recorded for the period, and a government grant off £72,832 received the year prior did not get enforced again.
The firm did raise £1.1 million of new funds through a share placing, which results in the firm having cash of £965,752 at the end of the year.
Nigel Theobald, Chief Executive Officer of N4 Pharma Plc, commented:
“The Directors believe we have made considerable progress in understanding how Nuvec® works in the last 12 months which will put us in a stronger position for potential collaboration discussions as we continue to present our data to potential licensing partners. Having demonstrated that Nuvec® can load and transfect a range of DNA and mRNA antigens in vitro and also produce an in vivo antibody response with a good safety profile, we have recently worked on improving the dispersion of Nuvec® with a view to addressing some of the inconsistencies seen in previous in vivo work.
“Our next focus is to assess the improved dispersion with further in vitro and in vivo testing of Nuvec® using OVA plasmid DNA whilst, in parallel, working with Nanomerics on producing stable Nuvec® formulations.
“We believe the work we have done in the last 12 months, together with our ongoing studies, puts our Nuvec® delivery system in a stronger position than it was when we first announced our positive in vivo antibody results and we remain excited about the potential for Nuvec® to become a credible delivery system in the field of cancer therapeutics and vaccines.”
N4 reach deal with Nanomerics Ltd
Last week, the firm told the market that they have signed a research collaboration deal with Nanomerics Ltd. N4 said that the deal would be spanning 14 months and this tie up will allow the testing of two candidate formulations using its Nuvec delivery systems. The firm said that the partnership will be split into two phases, each lasting seven months. In the first phase, N4 said that the companies will develop and test the thirty day stability of four different Nuvec formulations, using both a plasmid DNA and a small interfering RNA. After this, the second phase will be underway where the testing of efficacy of the plasmid DNA will take place in an vivo antibody generation model. Shares in N4 Pharma trade at 3p (-3.11%). 25/2/20 12:40BST.Clinigen see earnings rise across first half
Clinigen Group PLC (LON:CLIN) have told the market that earnings have risen in the first half of its financial year.
Shares in Clinigen trade at 804p (-5.24%). 25/2/20 12:10BST.
The pharmaceuticals firm said that pretax profit had increased by 92% to £24.8 million from the 2018 figure of £12.9 million in the six months to December 31.
Notably, revenues also surged 17% to £243.7 million from £208.9 million. On an organic basis – in constant currency and excluding acquisitions – revenue grew by just 1%.
Additionally, Clinigen declared an interim dividend payout of 2.15 pence per share, seeing a 10% spike from 1.95 pence paid in 2018.
Shaun Chilton, Group Chief Executive Officer, said: “Our strategy is to build an integrated, international pharma product and services group with strong operational synergies, working with a growing roster of multinational clients and healthcare professionals around the world. We are delivering on our strategy and have seen a strong financial performance – both at the headline numbers and on an underlying organic basis.
“Key operational highlights include the first supply agreement for Proleukin with Iovance; the performance of Melatonin, our largest Unlicensed-to-Licensed product to add to Glycopyrronium in validating this strategy; and continued strong growth in Global Access.
“With the commercial platform in the EU and US now established, we are actively seeking further product in-licensing and acquisition opportunities to leverage across the business. We are also integrating CSM into our Clinical Services division to drive higher organic growth across the Group through greater cross-selling and seeding relationships into our Unlicensed Medicines business.
“We have continued our good performance into H2 and continue to expect organic gross profit growth at the upper end of our medium-term target range of 5-10%.”
Looking at the statistics and update provided, it is interesting to note that the share price of Clinigen has fallen on Tuesday afternoon, shareholders have not reacted so optimistically to the results despite increasing revenues and profits.
FTSE 100 crashes to a five month low as coronavirus cases reach Italy and Tenerife
The FTSE 100 has crashed to a five month low on Tuesday, as it dropped below 7,100 for the first time since October following concerns over the coronavirus.
The fall for the FTSE 100 started yesterday, as further fears over the coronavirus continued to take their toll on global stocks and indices.
Currently, the FTSE 100 Index is at 7,118 (-0.54%). 25/2/20 11:35BST. However, global markets saw the index drop to 7,098 at around 10:35BST – a worrying drop for traders and businesses globally.
Markets plunged yesterday, as the coronavirus had reportedly hit Italy. On Sunday, football matches in Italy were postponed over the spread of the lethal virus and this has taken its toll on global markets.
Updates on the coronavirus today have reported that there are cases in a hotel in Tenerife of the disease – and now global governments are being increasingly alarmed over the potency of the coronavirus.
UK airlines were the victim of the drop in share price today and yesterday, as International Consolidated Airlines Group (LON:IAG) dropped 2% as it extended its travel restrictions to and from China.
Notably, budget airline RyanAir (LON:RYA) also lost 1.4% on its value, whilst rival TUI AG (LON:TUI) saw an ever bigger slump of 2.6%.
Yesterday, the FTSE 100 dropped 3.7% before making a slight recovery closing at 3.3% down – in what has been a gloomy few days for global businesses and stocks, it seems that the coronavirus s continuing to affect global markets.
Economic activity has been slumping in China, and demand for oil has also remained volatile. However, the weighing down on global markets is something that will concern governments, businesses and investors.
The coronavirus epidemic could still affect the FTSE 100, and has already hit the Dow Jones and German DAX – the worrying thing might be that, cases are still increasing at a time where global governments thought the virus was easing up.
John Woolfitt from Atlantic Capital Markets gave some further insight noting:
“The sell-off does look to be extremely overdone, especially when you compare
it to the markets reactions to previous outbreaks and the following impact
on the markets. Once the dust has settled it is going to be a fantastic
buying opportunity especially as the FTSE has seen 12months worth of gains
wiped out in less than a week.
The big word here is WHEN the dust has settled. There’s no point trying to
call the bottom, I am going to wait for it to present itself. Patience in
the short term will pay off nicely in the longer term. When SARS and MERS
hit the market the sell off was short lived and the bounce back highly
profitable. We expect similar again
I can’t help feeling that the US markets where looking for a reason to have
a sell off and Coronavirus has given it exactly that. It has been looking
overbought for a while.”
Hotel Chocolat shares bounce 9% on impressive interim results
Hotel Chocolat Group PLC (LON:HOTC) have seen their shares bounce on Tuesday, as the firm posted a strong set of interim results.
The firm did not change its dividend, and alluded to rising revenues and profits across the first half of its financial year.
Shares in Hotel Chocolat trade at 419p (+9.04%). 25/2/20 11:19BST.
Across the half year period, which ended on December 29 – the chocolate retailer reported that revenues had jumped 14% to £91.7 million from £80.7 million from a year ago. Notably, pretax profit also rose 8.2% to £15 million from £13.8 million.
Hotel Chocolat praised these results following the opening of nine new stores, which gives a total store portfolio of 125 sites. Additionally an increase in retail, wholesale and digital sales drove the strong performance.
The firm proposed an interim dividend of 0.6 pence, remaining consistent from a year ago.
Angus Thirlwell, Co-founder and Chief Executive Officer of Hotel Chocolat, said:
“This was another strong period for Hotel Chocolat. Our new store openings contributed three percentage points of the growth in the period, with the remaining balance coming from existing locations, digital and wholesale channels. While our new markets in the US and Japan are still in the early stages of development, consumer response to the brand is encouraging, sales are growing, and we believe we have a deliverable plan to achieve attractive returns.
“The Velvetiser in-home hot chocolate system achieved strong growth, with our installed Velvetiser owner base showing great loyalty and enthusiasm for our widening library of flavours, with Tasmanian Mint, Habanero Chilli, and Maple & Pecan hot chocolates becoming instant hits. Our VIP loyalty scheme continued to grow strongly and contributed to double digit EBITDA growth from our physical UK locations.
“Our strong growth came from a wider variety of sales channels than in previous years, which led to some initial challenges in our supply chain. We are now making good progress with investments and upgrades in our supply chain which will fully address these inefficiencies and increase our international and multi-channel supply capability, ensuring we continue to deliver profitable growth.”
AstraZeneca sublicense Movantik to RedHill Biopharma
AstraZeneca plc (LON:AZN) have announced that it has agreed to sublicense the global rights to Movantik.
The deal has been struck with RedHill Biopharma Ltd for $67.5 million – and certainly looks like a shrewd piece of business.
Movantik is indicated as a treatment for opioid-induced constipation – and Redhill are set to pay AstraZeneca $52.5 million upfront for the global rights – excluding Israel, Canada, and Europe. Additionally, another $15 million will be paid as a non contingency payment in 2021.
Whilst the deal is being formally completed, AstraZeneca have pledged to keep manufacturing and supplying Movantik.
The deal is set to be complete in the first quarter of 2020, provided e “customary closing conditions and regulatory clearances” are met. As a results, the firm have said that there 2020 guidance will not be affected.
Ruud Dobber, Executive Vice President, BioPharmaceuticals Business Unit, said: “This divestment supports our strategy to realise value from medicines in our portfolio that are mature or outside our current scope to enable reinvestment in our main therapy areas. Movantik is an important established medicine and the divestment to RedHill will ensure its continued availability for patients.”
AstraZeneca continue 2020 in strong fashion
At the end of January, the firm gave a double update which continued the good run for the firm. The FTSE 100 listed pharmaceutical giant updated shareholders by saying it has sold the commercial rights to its Inderal, Tenormin, Tenoretic, Zestril, and Zestoretic to Basildon-based Atnahs Pharma for $350 million upfront. Astra added that they may also get a further $40 million depending on sales between 2020 and 2022. Notably, the sale excludes provisions in the USA and India, which had been sold prior to the announcement. AstraZeneca also updated the market about the outcomes of drug trials for two new medications. The pharmaceutical giant said that the Brilinta medication met its primary endpoint in a third phase trial, which showed positive conclusions including the reduction in the risk of death in strokes compared to conventional painkillers. Enhertu, a gastric cancer treatment, also met its primary endpoint, in a phase II trial. Astra said the drug achieved a “statistically significant and clinically meaningful improvement” in the response and survival rate of patients with unresectable or metastatic gastric of gastroesophageal cancer. Shares in AstraZeneca trade at 7,379p (-0.90%). 25/2/20 11:05BST.De La Rue announce three year turnaround plans, as shares spike 18%
De La Rue plc (LON:DLAR) have seen their shares rally on Tuesday, following an optimistic update from the firm.
The bank note producer has seen a lot of turbulence of the last few months – and questions as to whether the firm would survive were posed. However the update provided today will give shareholders some confidence for the future.
De La Rue announced the details and terms of its three year turnaround plan, as the firm reinstated its annual guidance.
The firm added that trading in the second of its financial year in both its Currency and Authentication sectors had been ‘satisfactory’.
De La Rue held faith in their current guidance for operating profit to lie in the range of £20 and £25 million.
Looking at the firms turnaround plan, De La Rue said that it plans to return its its Currency unit to “progressive” margin growth from financial 2021, helped by cost reductions, and investment in polymer and related features.
Notably, the firm also added that demand for currency is still high worldwide and it will look to maintain its “number one” position in the commercial currency print marketplace.
Clive Vacher, CEO of De La Rue, said:
“I am pleased that we have delivered our review of the business on schedule and are on track with the Turnaround Plan, which will deliver significant improvement in the operational and financial performance of the Company. The Plan drives extensive cost reduction and, in parallel, offers a substantial investment opportunity for growth.
“For our valued customers, De La Rue will be an even stronger brand going forward, with exciting market-leading innovations and unparalleled customer focus and support. For our dedicated employees, solidifying both divisions as strong, profitable and growing will ensure long-term stability and a company proud of its number one position globally in the marketplace. For our shareholders, the plan creates value, sustainability and predictability.
“I am confident that this is the right plan for De La Rue. There is a considerable amount of work to be done, and the Company has a single, focused plan, a fully aligned leadership team, and a greatly enhanced structure. We are ready to execute. I look forward to providing further details at our full year results in May.”