Horizonte Minerals shares sank on Tuesday after announcing that the capital required to complete construction of its Araguaia nickel project in Brazil has increased to approximately $1 billion, up 87% from previous estimates of $537 million.

The revised cost-to-complete (CTC) estimate and construction schedule were prepared by G Mining Services, a mining construction and engineering firm. G Mining estimated the capital needed to finish construction, commission the Araguaia project, and deliver first metal would be around $454 million. When combined with prior spending, this brings the total estimate at completion (EAC) to $1.004 billion.

Horizonte said it expects to achieve mechanical completion of Araguaia in the first quarter of 2026 under the revised schedule.

Horizonte Minerals shares were down 59% at the time of writing.

The company appointed Graham Crew as interim Chief Operating Officer to oversee the review process and construction plans. Horizonte also said it is in discussions with major shareholders and lenders to restructure debt facilities and secure full financing for the project.

The news will come as a hammer blow to investors who will now have to wait many years for the first production and face the uncertainty of how Horizonte will actually get there.

“Since our last update, a significant volume of work has been completed to develop a new Project Execution Plan, develop a realistic mine plan and business plan, all while continuing to proactively engage with the Company’s cornerstone shareholders, senior lenders, vendors and contractors as well as the community and local authorities,” said interim CEO Karim Nasr.

“While the new Cost-to-Complete is higher than previously announced by the company, it is now built on solid methodologies, which is a testament to the hard work undertaken to date by the whole Horizonte team.”

Barclays shares rose on Tuesday after the London-listed bank announced an additional £1bn share buyback and £2bn in cost cuts by 2026.

Barclays shares rose 4% in early trade as investors chose to focus on the buyback and cost-cutting measures and looked past lower total income and revenue that missed estimates.

The group said it planned to return £10bn to investors by 2026.

Additional share buybacks almost always please investors, but Q4’s total income of £5.6bn compared to expectations of £5.8bn highlights the challenging environment banks are now operating in.

That said, while the announcement of £2bn in cost savings wasn’t a total surprise, the swift and decisive action taken by Barclays to help bolster the bottom line will be welcomed by investors concerned about the prospect of lower net interest margins in the coming periods.

For the full year, Barclay’s net interest margin was 3.98%, reflecting a higher interest rate environment. However, Q4 group net interest margin fell to 3.83% after peaking at 4.06% in Q2. This represents the impact of higher competition for savings deposits and expectations of rate cuts in 2024.

With net interest margins past their peak for the current hiking cycle, cost-cutting measures are crucial for maintaining profitability.

In terms of non-operating and one-off costs incurred during the period, Barclays has set aside cash for redundancies and bad US debts. These non-recurring costs weighed on profits during Q4 and may explain why investors chose to focus on future cost-cutting instead of recent profitability.

“There’s a shakeup at Barclays. It’ll now report through five distinct operating divisions with accountability as a key focus. Investors will hear more later today when the company dives into details,” said Matt Britzman, equity analyst, Hargreaves Lansdown.

“Fourth quarter performance was a little worse than expected, largely because of higher costs associated with the restructure. There was some concern that this could impact the buyback, but Barclays has put that to bed with a £1bn plan, ahead of expectations.”

“Medium-term guidance was positive and points to around 54% of today’s market cap being returned to investors by 2026. But there may be some who question whether it’s a little optimistic, especially relating to growth expected from the investment bank. Barclays’ huge presence in the investment banking world is an attractive proposition. But conditions are still poor and low activity in the capital markets continues to weigh on performance.”

The FTSE 100 was trading within a tight range on Monday with little in the way of fresh catalysts to invigorate substantial moves in stocks. This, however, may prove to be short-lived.

In addition to Federal Reserve minutes due to be released on Wednesday, investors will digest a raft of FTSE 100 earnings and those of US AI superstock Nvidia.

Antofagasta, Barclays, BAE Systems, Glencore, HSBC, Rio Tinto, Anglo American, Hargreaves Lansdown and Lloyds will all report full or half year results this week. Not only do these stocks account for a large proportion of the FTSE 100 index, they are tremendously cyclical and have the potential to set the tone for trading across the entire UK equity space.

Consider that Nvidia will report results this week as well; this may be a week driven by bottom-up traders as opposed to broader macro influences and the persistent focus on interest rates may take a back seat.

“The FTSE 100 made a sluggish start to trading on Monday, lacking some direction amid the absence of big corporate or economic releases,” said AJ Bell investment director Russ Mould.

“That changes later in the week when the minutes of the latest Federal Reserve meeting are released and the AI stock Nvidia unveils its latest quarterly results. There is little margin for error for the chip specialist given the supercharged surge in its share price which has continued into 2024.

“Nvidia’s weight in the market and ties to the dominant theme has driven equities over the last year or so, which means whatever it comes out with will have wider ramifications for investors.

AstraZeneca

AstraZeneca was the FTSE 100’s top riser at the time of writing on Monday after the pharma giant said it had received positive results from trials of its lung cancer drug, Tagrisso.

Susan Galbraith, Executive Vice President, Oncology R&D, AstraZeneca, said: “These highly impactful results for the LAURA trial in this potentially curative early lung cancer setting further entrench Tagrisso as the backbone therapy for EGFR-mutated lung cancer.”  

Tagrisso is a significant revenue generator for AstraZeneca, and today’s announcement further cements the drug as a primary oncology therapy.

AstraZeneca shares were 3.1% higher at the time of writing.

Rolls Royce was not far behind, with a 3% gain ahead of its earnings on Thursday this week.

Centrica was the FTSE 100 biggest faller after Jefferies cut its price target on the stock to 150p.

Retail and promotional business Spaceandpeople (LON: SAL) did slightly better than expected in 2023 with revenue of £5.8m, up from £4.7m. The company has changed its revenue recognition policy in the UK and revenues will be recognised on a net rather than gross basis. Without the change the 2023 revenues would have been more than £6.5m. The German business is recovering, and its revenues will still be recognised on a gross basis. There is no change to pre-tax profit – £90,000 is forecast. Net cash was £800,000 at the end of 2023. The share price jumped 41% to 82.5p.

Security and surveillance systems developer Petards (LON: PEG) has secured an order for the QRO Solutions business, which provides ANPR technology, worth £350,000 and it should be delivered to a UK police force this year. This is the latest contract win this year and this is offsetting the weak rail market. The cash pile underpins nearly 50% of the current market value. The share price is 23.1% higher at 7.2p, which is 84.6% ahead since the beginning of the year.

Location Sciences has changed its name to Sorted Group (LON: SORT) following the reverse takeover of the developer of delivery software for ecommerce businesses. The customer base includes Marks & Spencer, Asda and ASOS. There is a SaaS-based model, although smaller businesses can use the return service on a pay-as-you-go basis. In the year to September 2023, recurring revenues were £6.5m. The business is loss making. There was a one-for-625 share consolidation and the post-consolidation share price improved 7.91% to 145p. There was £2m raised at 87.5p/share.

Kefi Gold and Copper (LON: KEFI) has discovered a third copper gold zinc silver deposit in the Hawiah copper gold district in Saudi Arabia. Drilling intersected semi-massive sulphide mineralisation in multiple horizons over a 2,600 metre strike length at Abu Salal. Management believes there are a cluster of deposits in the area. In the next few weeks, there will be updates on the Hawiah and Al Godeyer deposits. The share price increased 5.88% to 0.684p.

FALLERS

Linear generator technology developer Libertine Holdings (LON: LIB) was the highest riser last week with a 257% jump to 6.25p and it has lost 10% to 5.625p. Libertine Holdings completed phase 1 support for the KARNO linear generator with Hyliion Holdings. Libertine’s HEXAGEN technology was integrated into the first prototype. The income from this business will help the Libertine cash pile last until July.

Atome (LON: ATOM) has raised £1.8m at 50p/share. The share price fell 8.04% to 51.5p. This cash will help to fund the green fertiliser plant at Villeta in Paraguay. The FEED study on phase 1 is nearing completion. Management is subscribing £665,000.

NICE Early Value Assessment evidence generation has commenced. It is designed to accelerate the adoption of new technologies. genedrive (LON: GDR) is in the process of submitting an application for funding for progressing the Genedrive MT-RNR1 ID Kit to a full recommendation. The share price dipped 4.86% to 4.4p.

Supercapacitors developer CAP-XX (LON: CPX) have decided not to appeal the judgment in favour of Maxwell Technologies in the patent infringement case in Delaware due to the cost and low probability of success. The share price declined 7.41% to 0.625p.

Tekcapital released a portfolio company update for Guident on Monday, revealing several commercial and technological advancements, including the deployment of its technology in autonomous buses and shuttles and the launch of a new Remote Monitor and Control Centre.

Remote Monitor and Control Centre (RMCC)

Guident has launched the USA’s first commercial Remote Monitor and Control Centre (RMCC) specifically designed to enhance the safety of autonomous vehicles at the Boca Raton Innovation Campus.

This will oversee a closed-loop autonomous shuttle service and Tekcapital suggested it demonstrates the scability of Guident’s remote monitoring and control solutions for enhancing autonomous vehicle safety.

Autonomous Buses & Shuttles

Guident previously established a partnership with Adastec to integrate its teleoperation system with Adastec’s autonomous bus technology. This collaboration has resulted in the deployment Guident’s RMCC solution with Adastec’s automated buses in the US, enhancing safety and capabilities.

A partnership with Auve Tech to integrate Guident’s RMCC system into Auve Tech’s autonomous shuttles will see the first integrated shuttle shipped to the US this month.

Enhancing connectivity

Through a grant from Space Florida, Guident is implementing satellite communications to complement 4G/5G connectivity for its teleoperations. This will provide unsurpassed network availability and the ability to provide services in areas with limited cellular networks.

The latency in connectivity between Guident’s RMCC’s and autonomous vehicles is vital to enhance the safety features of the technology. Utilising satellite technology lowers latency and ensures coverage during all weather conditions.

Regenerative Shock Absorber

Guident has established Revive Energy Solutions to house the company’s Regenerative Shock Absorber technology. This follows proof-of-concept testing and traction with manufacturers. Further testing and assessments to bring the technology to market are underway with multiple car manufacturers. An additional patent application has been filed to enhance energy harvesting capabilities.

Revive Energy Solutions will allow Guident to clearly define the value attributed to its shock absorber technology and create opportunities for focused capital provision.

Sales channels

Guident has transitioned to a value-added reseller sales model, accelerating traction through global partner collaborations. There has been an increase in RFPs and ongoing projects, including with initial customer JTA.

Electrical retailer Curry is the subject of a takeover battle after JD.com confirmed it was considering making a bid, joining US investment firm Elliot whose bid was rejected over the weekend.

Currys shares were 34% higher on Monday after it rejected a 62p bid from Elliot saying it significantly undervalued the company.

The Telegraph reported JD.com had held talks with Currys, althoughht this did not guarantee JD would make a bid. The presence of a second has helped Currys shares move past the initial 62p bid from Elliot.

Currys is the latest UK-listed company to receive the interest of overseas companies circling a host of undervalued high-quality UK companies not appreciated by the UK market.

“There will be fresh worries swirling this morning about the potential of more takeovers of London-listed companies. Currys, the electrical retailer, is the latest to be circled by an overseas buyers. It’s rejected an unsolicited bid from investment firm Elliott and now Chinese e-commerce giant JD.com has confirmed its mulling an offer,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“It’s no secret that it’s been hard going for Currys recently. It’s been hit hard by cost-of-living headwinds as shoppers find the purchases of bigger ticket items hard to justify, particularly as many purchases were brought forward during the pandemic.

“Its shares have fallen 90% since their peak in 1995 and have lost further ground since the start of the year. It’s yet another asset considered to be cheap, weighed down by the current economic malaise, but investment firm Elliott clearly sees that there is value to be found in its omnichannel model, and opportunities of a turnaround ahead.”

Atome Energy has raised £1.8 million through a discounted placing sending shares sharply lower on Monday.

The company issued 3.6 million new ordinary shares at 50p per share to help finance the development of its s fertiliser business in South America. Atome directors and senior management subscribed for £665,000 worth of shares.

Atome Energy shares were down 10% to 50p at the time of writing and were approaching the lowest levels since the company listed on AIM in late 2021.

Paraguay Project

Atome’s board jumped at the chance to secure funds by way of a placing after a minor bounce for shares last week in an otherwise solid downtrend. Atome stated the money raised will help expedite growth and development of its flagship green fertiliser project in Paraguay. Specifically, the funds will be used for engineering and design works on the Villeta project.

Its 145MW Villeta project is now at an advanced stage, with a signed power purchase agreement in place.

Full production at Villeta is targeted for 2026, when Atome aims to become one of the world’s largest green fertiliser producers. The company has a global project pipeline exceeding 600MW.