Watch the online presentation for Shires Income, featuring Fund Manager Iain Pyle.
The Company’s investment objective is to provide shareholders with a high level of income, together with the potential for growth of both income and capital from a diversified portfolio substantially invested in UK equities but also in preference shares, convertibles and other fixed income securities.
Atlantic Lithium (LON: ALL) shares improved 37.3% to 11.2p ahead of its AGM on 27 November. The main rise was on Monday when there were 11.4 million shares traded. Management believes that the mining lease for the Ewoyaa lithium project in Ghana could be granted soon.
David Nugent, who owns 16% of Genedrive (LON: GDR), has agreed the terms of a loan of up to £1m. It can be drawn down in two equal tranches. It will be secured against the company’s assets. The share price recovered 22.4% to 0.9p.
Sabien Technology (LON: SNT) says Korea-based partner City Oil Field has commissioned its first regenerated green oil production plant. The partnership is being progressed to a strategic agreement. Sabien Technology will acquire a 1.12% stake in City Oil Field for £600,000 in shares, and the UK sales agreement has been extended for ten years and will be expanded to other countries. There will also be a deal to sell products from the new plant. City Oil Field will own 15.9% of Sabien Technology. The share price increased 17.9% to 8.25p.
X-ray screening systems supplier Image Scan (LON: IGE) has secured a double-digit unit contract with its Indian partner for the ThreatScan-LS1 following a competitive tender. The share price gained 15.6% to 1.85p.
FALLERS
Bigblu Broadband (LON: BBB) is in talks with the buyer of Skymesh about the post-acquisition performance of the business and whether there is going to be any deferred consideration. Bigblu Broadband may have to compensate the buyer for debtors that have not been collected. Bigblu Broadband plans to ask for shareholder permission to leave AIM at a general meeting on 8 December. It could leave on 18 December. Management will seek to realise value form the remaining assets. The share price dived 70.3% to 5.5p.
Empyrean Energy (LON: EME) says Conrad Asia Energy has signed an agreement with PT Nations Natuna Barat for farming into the Mako gas field in the Duyung production sharing contract and the new partner will pay 100% of project development costs for a 75% non-operated participating interest in the Duyung PSC. The deal could be completed by the third quarter of 2026. Empyrean Energy is in dispute with Conrad Asia Energy about its interest in the Duyung PSC. The share price slumped 69.2% to 0.0425p.
Industrial equipment distributor HC Slingsby (LON: SLNG) is asking for shareholder approval to leave AIM. The shares are illiquid and the cost of being on AIM adds to the company’s loss, which was £237,000 in the nine months to September 2025. Net debt was £340,000. There is already support from shareholders owning 73.2% of the shares. HC Slingsby transferred from the Main Market to AIM on 24 May 2005. It has been on the London Stock Exchange for many decades. The cancellation could be on 23 December. No matched bargain facility is planned. The share price dipped 52% to 60p.
Defence consultancy RC Fornax (LON: RCFX) raised £2.25m in a placing at 6p/share and raised £70,000 out of the £500,000 retail offer. The cash will fund development of the Procure X Marketplace to connect small companies with defence buyers and provide working capital. Directors and management are investing £156,800 in new shares. This includes Paul Reeves and Daniel Clark who raised £1m in the flotation back in February, when the company raised £5.2m at 32.5p/share. Cavendish has increased its 2025-26 forecast loss to £2m and expects a lower loss next year. The share price slid 39.5p to 5.9p.
Kasei Digital Assets (LON: KASH) plans a return of cash to shareholders. There should be £3.4m in cash after selling assets and this should be returned to shareholders. A subscription of £200,000 at 1p/share will provide an additional £100,000 for distribution. The new investors include new executive chairman Kwasi Kwarteng, the former Chancellor of the Exchequer, new non-exec Paul Withers, Daniel Howe and Sam Daughtry, plus existing directors Jai Patel, who will become chief executive, and Brendan Kearns. Bryan Coyne, Steven Davis and Jane Thomason will resign from the board. The unsuccessful digital assets strategy will be adapted with a greater focus on Bitcoin, and more cash raised. The share price jumped 38.9% to 12.5p, which values the company at £4.2m.
Ajax Resources (LON: AJAX) says the terms of the conditional acquisition of the Paguanta zinc, silver and lead project have been revised. It will acquire a company with a 74.81% stake in the project for $37,500 in cash and $37,500 in shares. The seller will retain a 1% net smelter royalty capped at $500,000. The Environmental Impact Assessment has been submitted for the Eureka project and the company issued formal notices to relevant communities. The Environmental Impact Declaration should be issued in early December. The share price gained 19.4% to 5.375p.
Online consumer loans provider Amazing AI (LON: AAI) is exploring the options of quotations on the Mauritius Stock Exchange and/or the US OTCQB Market. This follows the decision not to go ahead with spinning off 80% of its subsidiary based in Mauritius and retaining the minority stake. Existing company shareholders will receive shares on a pro rata basis. The share price improved 16.7% to 0.35p.
Evrima (LON: EVA) investee company Eastport Ventures Inc has joined the TSX Venture Exchange. Evima owns 3.83% of the Botswana-focused critical minerals explorer and also holds warrants. The Evrima share price increased 14.3% to 0.4p.
Hot Rock Investments (LON: HRIP) has a portfolio of shares, as well as 150,000 shares in WeShop Holdings (NASDAQ: WSHP), which has joined Nasdaq. The share price was well above $200 at one point last week and ended at $113.40. The stake is valued at $17m. At 1.35p, up 12.5%, Hot Rocks Investments is valued at £2.8m.
Wishbone Gold (LON: WSBN) is holding a general meeting on 28 November to gain shareholder approval for a 100-for-one share consolidation. The share price rose 5.88% to 0.9p.
Dominic White has stepped down as a director of technology-based financial services company Eight Capital Partners (LON: ECP). He remains as an adviser. The share price edged up 1.27% to 79.5p.
FALLERS
Energy transition engineering Time To ACT (LON: TTA) says the main subsidiary Diffusion Alloys is likely to be profitable in 2025-26 and 2026-27, although this depends on timing. The order book of large project work is worth more than £4m and most of this will be recognised during 2026. There is enough cash for at least 12 months, but it appears it will not last as long as previously expected. Oberon Capital has been appointed joint broker. The general meeting was postponed. The share price slumped by two-fifths to 9p, which is a new low.
The Smarter Web Company (LON: SWC) has raised another £141,000 at 61p/share. The share price dived 26.9% to 39.5p.
Valereum (LON: VLRM) has completed a subscription to raise raised £600,000 at 5p/share. Chairman James Bannon and chief executive Gary Cottle contributed £225,000 each and they will each receive 2.5 million warrants exercisable at 50p each and 2.5 million warrants exercisable at 100p each. The rest comes from another investor, which will also receive warrants. A further £50,000 has been raised by the exercising of warrants at 4p each. The share price dipped 22.6% to 6p.
Mendell Helium (LON: MDH) raised £200,00 at 3p/share. This is a direct investment by an existing shareholder. The share price slid 17.9% 2.875p.
B HODL (LON: HODL) has taken its Bitcoin holding to 155.039 and the total cost was £13.1m. The share price decreased 13% to 11.75p.
Music agent All Things Considered (LON: ATC) is moving to AIM and raising £8.6m at 125p/share. The expected admission date is 17 December, which is four years after joining Aquis at 153p/share. Trading is second half weighted and is currently in line. The share price declined 10.7% to 125p.
Shepherd Neame (LON: SHEP) non-executive director Marion Sears bought 4,000 shares at 466p each. The share price is 5.72% lower at 464p.
WeCap (LON: WCAP) owns 11.8% of WeShop Holdings (NASDAQ: WSHP). That is 806,022 shares directly and 2.08 million shares via a 23.5% holding in Community Social Investments Limited (CSIL). At $113.40, the stake is worth $31m. Peel Hunt has cut its shareholding in WeCap from 18.4% to below 10%. Because of this, the share price edged down 2.04% to 2.4p despite higher trading levels during the week.
AI-based technology commercialisation company GenIP (LON: GNIP) has received 57 repeat orders. This includes 50 orders from two US universities and seven from a UK university. The share price gained 5.41% to 19.5p.
ITM Power (LON: ITM) has been selected as the partner to supply 710MW of its electrolysers to Stablegrid in Germany. The system will help to stabilise the German electricity system because of variable output from renewable energy. Final investment decision will be in 2028. The share price rose 4.19% to 74.6p.
GCM Resources (LON: GCM) had a cash outflow of £1.27m in the year to June 2025. Net debt was £4.9m at the end of June 2025. The company says that the Phulbari coal and power project is the most advanced and deliverable domestic coal project in Bangladesh. The share price improved 4.35% to 6p.
Safilo Group made an approach to Inspecs (LON: SPEC) to acquire the Eschenbach and BoD businesses. It made two non-binding cash offers, and they we rejected by Inspecs. The share price increased 2.74% to 75p.
Healthcare financial software provider Craneware (LON: CRW) has started the latest financial year positively. The alliance with Microsoft is bringing significant opportunities. Craneware is developing a product for the 340B drug rebate programme in the US. The share price is 2.12% higher at 2165p.
FALLERS
UK Oil & Gas (LON: UKOG) has raised a further £520,000 at 0.016p/share. The company has raised more than £5m since the beginning of October. This will help to accelerate the development of hydrogen storage projects and moving ahead with a potential electrolytic hydrogen generation project geared initially to decarbonise the energy use of a substantive Dorset-based industrial user. The share price slipped 18.8% to 0.0175p.
NWF (LON: NWF) says its businesses have had a mixed first half performance. Heating oil volumes have been lower than normal and the winter increase in demand is not likely to make up for this. Commercial fuels demand has also been lower, and this is higher margin. This has led to pricing pressures as the company rolls out a new regional operating model. The food distribution and feeds businesses are doing well, with the former picking up new contracts. The share price declined 18.2% to 130p.
Gold explorer Panthera Resources (LON: PAT) says test results on bulk composite samples from the Kalaka deposit in Mali. The ores are amenable and recoveries averaged 76.3%. CIL extractions can average 93.4%. The share price fell 5.46% to 22.5p.
Index over-discounting budget and interest rate concerns
2026 seen as year of outperformance for the junior market
FTSE AIM All-Share Data
Index Level: 737.41
Net Market Cap: £41,170m
No of Constituents: 549
52 week high/low: 796.52/624.42
Past 7-months return: 4.84%
Constituent Sizes and Yield
Ave. Market Cap: £74.58m
Medium Mk Cap: £14.00m
Largest Mk Cap: £2,608.52m
Smallest Mk Cap: <£1m
Index Yield: 1.94%
AIM All-Share – 15-year Performance Chart
TPI stuck its head above the parapet back at the start of May 2025, with its forecast that AIM would outperform the FTSE All-Share between now and year end. Analysis suggested the Index was about to emerge from the ‘perfect storm’ it had encountered since peak Pandemic, with the interest rates finally heading downwards amid expectation of an extended series of cut, while UK-focussed equity fund outflows were slowing and the halving of the inheritance tax exemption also appearing to have been just about priced in.
AIM All-Share had Consistently Outperformed the FTSE All -Share Until Mid-October 2025
The scenario worked well for the following 5 months, allowing the Index to chalk up relatively consistent outperformance (of almost 10% at one stage), only to then hit a ’bump in the road’ in mid-October. This rapidly reversed AIM’s hard-won gains to now sit a similar amount below the benchmark. This coincided with the release of cautionary UK macroeconomic data including slowing GDP growth accompanied by stubbornly high CPI, resulting in a stalling of further interest rate cuts. With signs of sharply declining productivity, the Government’s escalating deficit will force the Chancellor to address a funding ‘gap’ estimated to be between £20 billion and £50 billion in her forthcoming budget. Given that this is almost certain to be affected through further punitive attacks on wealth, AIM‘s overwhelming dependence on the domestic economy meant that it was no surprise when investors chose to lock-in profits to date.
UK markets have been trading under the shadow of 26 November for some time now. This is perfectly illustrated by nearly £7.3bn having been withdrawn from equity funds by UK-based investors since July, the largest outflow ever recorded in a four-month period. Not surprisingly, many were seeking simply to crystalise gains prior to, or in anticipation of, the imposition of new punitive taxes from April 2026.
UK Equity -Net Fund Flow
With such a dull picture being painted, it is not surprising that the UK continues to trade at relatively deep discounts to both the US and EU markets. The FTSE 100, for example, is presently valued at c.13-14 times earnings, or roughly half the 22 to 27 level S&P 500 enjoys even if this can be partly explained away by its traditional sector mix weighting heavily toward financials, energy and materials as opposed to high-growth technology shares. Since the COVID Pandemic peaked at the end of Q1 2021, AIM has tumbled by an extraordinary 67% relative to the FTSE All Share leaving it trading c.42% below its 10-year average.
Yet, partly by design and partly by default, it looks like AIM will in fact be a net beneficiary of the forthcoming Budget. As well as keeping current investment incentives intact, there is general expectation that the Chancellor will look for new routes to boost overall UK business investment; one such move (likely to be effective from April 2026) could be to reduce the current £20,000 allowance on cash ISAs in an effort to divert money to stock and shares ISAs instead; a further, potentially even more significant, initiative for the junior index was launched on 21 October 2025, whereby twenty of the UK’s largest pension providers and insurers (the ‘Sterling 20’, representing >90% of the UK’s active Defined Contribution scheme savers) voluntarily agreed with the government to channelling of a proportion of pension savings into unlisted UK growth opportunities (including those quoted on AIM), national infrastructure projects, etc. The timing by which AIM might see real inflows as a result remains uncertain, although the aim is to unlock at least 5% of their main default funds (>£25bn) by 2030 for investment in areas such as affordable housing, broadband connections and scale-up finance for early-stage growing businesses.
AIM Index Performance – A Mirror Image of UK Base Rate Moves
The charts above demonstrate AIM’s sensitivity to UK base rate cuts. Turner Pope projects the Bank to commence a series of four straight 25bp cuts, starting on 18 December 2025 and continuing through to the end of next year. The Bank recently stated its view that UK CPI has probably already past its peak (having now fallen back to 3.6% in October after plateauing at 3.8% in each of the three previous months) and went on to forecast consumer prices will fall back to about 2.5% next year, before touching its 2% target during the course of 2027. But with Q3 2025 GDP growth having tumbled to just 0.1% while UK unemployment rose to 5% (the highest since the end of the Covid pandemic) over the same period, its current projection that the economy will expand by just 1.2% in 2026 is now looking tenuous. Various pundits are taking bets on the UK falling into recession within the coming 6 months. So, in the absence of any unexpected new ‘shocker’ from the Chancellor just one week from now, an 18 December cut from 4.0% to 3.75% looks almost in the bag. Assuming also that the UK’s current political turmoil continues to compound in the coming months, the Bank will be obliged to do whatever it can to maintain a slither of domestic confidence in the hope of attracting incoming investment.
With most of AIM’s early-stage constituents remaining cash consumers, there is a wide disparity in terms of their operational risks, market positioning and the underlying quality of their management. This has always
meant that passive Index investing is less effective than a rigorous, active management approach (stock picking) to identify promising companies.
With this in mind, a tabulation has been provided below to detail the performance of a selection of the equity placings TPI has conducted for its Advised companies over the past couple of years, detailing gains registered both at the individual company’s share price peak and at its current level.
Performance Following Recent TPI AIM Equity Placements1
| Name | Equity Placing Date | Amount Raised (gross) | Placing Price (p) | Subsequent Share Price Trading High (p) | %Profit/Loss from Trading High (p) | Current Share Price (p) | %PL on current price |
| Orosur Mining Inc. | Feb-24 | £500k | 2.95 | 29 | 883% | 19.6 | 564% |
| Avacta Group plc2 | Feb-24 | £25.7m | 50 | 82 | 64% | 83.2 | 66% |
| N4 Pharma plc | Jun-24 | £630k | 0.5 | 1 | 100% | 0.63 | 26% |
| Aptamer Group plc | Jul-24 | £2.83m | 0.2 | 1.57 | 685% | 0.90 | 350% |
| Orosur Mining Inc. | Sep-24 | £835k | 2.78 | 29 | 943% | 19.66 | 607% |
| Ironveld plc | Oct-24 | £2.5m | 0.036 | 0.08 | 122% | 0.05 | 39% |
| Orosur Mining Inc. | Dec-24 | £1.25m | 6.6 | 29 | 339% | 19.6 | 197% |
| Theracryf plc | Feb-25 | £4.25m | 0.25 | 0.275 | 10% | 0.21 | -16% |
| N4 Pharma plc | Apr-25 | £1.75m | 0.4 | 1 | 150% | 0.63 | 58% |
| Alien Metals Ltd. | May-25 | £1m | 0.08 | 0.3 | 275% | 0.12 | 50% |
| Metir plc | Jun-25 | £1.75m | 0.65 | 1.49 | 129% | 0.80 | 23% |
| Ironveld plc | Jun-25 | £900k | 0.045 | 0.08 | 78% | 0.05 | 11% |
| Zephyr Energy plc | Jun-25 | £10.5m | 3.00 | 3.3 | 10% | 2.45 | -18% |
| Aptamer Group plc | Jul-25 | £2.0m | 0.3 | 1.57 | 423% | 0.90 | 200% |
| Avacta Group plc2 | Jul-25 | £3.25m | 30 | 83.2 | 177% | 83.2 | 177% |
| Orosur Mining Inc.2 | Oct-25 | £10.6m | 18.09 | 29 | 60% | 19.6 | 8% |
| Futura Medical plc | Nov-25 | £2.75m | 1 | 1.7 | 70% | 1.25 | 25% |
Risk Warning: Past performance is not a reliable indicator of future results.
THIS DOCUMENT IS NOT FOR PUBLICATION, DISTRIBUTION OR TRANSMISSION INTO THE UNITED STATES OF AMERICA, JAPAN, CANADA OR AUSTRALIA.
Conflicts
This is a non-independent marketing communication under the rules of the Financial Conduct Authority (“FCA”). The analyst who has prepared this report is aware that Turner Pope Investments (TPI) Limited (“TPI”) has a relationship with the company covered in this report. Accordingly, the report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing by TPI or its clients ahead of the dissemination of investment research.
TPI manages its conflicts in accordance with its conflict management policy. For example, TPI may provide services (including corporate finance advice) where the flow of information is restricted by a Chinese wall. Accordingly, information may be available to TPI that is not reflected in this document. TPI may have acted upon or used research recommendations before they have been published.
Risk Warnings
Retail clients (as defined by the rules of the FCA) must not rely on this document.
Any opinions expressed in this document are those of TPIs research analyst. Any forecast or valuation given in this document is the theoretical result of a study of a range of possible outcomes and is not a forecast of a likely outcome or share price.
The value of securities, particularly those of smaller companies, can fall as well as rise and may be subject to large and sudden swings. In addition, the level of marketability of smaller company securities may result in significant trading spreads and sometimes may lead to difficulties in opening and/or closing positions. Past performance is not necessarily a guide to future performance and forecasts are not a reliable indicator of future results.
AIM is a market designed primarily for emerging or smaller companies and the rules of this market are less demanding than those of the Official List of the UK Listing Authority; consequently, AIM investments may not be suitable for some investors. Liquidity may be lower and hence some investments may be harder to realise.
Specific disclaimers
This document has been produced by TPI independently. Opinions and estimates in this document are entirely those of TPI as part of its internal research activity. TPI has no authority whatsoever to make any representation or warranty on behalf of any of the markets or indices mentioned in this report
General disclaimers
This document, which presents the views of TPIs research analyst, cannot be regarded as “investment research” in accordance with the FCA definition. The contents are based upon sources of information believed to be reliable but no warranty or representation, express or implied, is given as to their accuracy or completeness. Any opinion reflects TPIs judgement at the date of publication and neither TPI nor any of its directors or employees accepts any responsibility in respect of the information or recommendations contained herein which, moreover, are subject to change without notice. Any forecast or valuation given in this document is the theoretical result of a study of a range of possible outcomes and is not a forecast of a likely outcome or share price. TPI does not undertake to provide updates to any opinions or views expressed in this document. TPI accepts no liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document (except in respect of wilful default and to the extent that any such liability cannot be excluded by applicable law).
The information in this document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient.
This document is approved and issued by TPI for publication only to UK persons who are authorised persons under the Financial Services and Markets Act 2000 and to professional clients, as defined by Directive 2004/39/EC as set out in the rules of the Financial Conduct Authority. This document may not be published, distributed or transmitted to persons in the United States of America, Japan, Canada or Australia. This document may not be copied or reproduced or re-distributed to any other person or organisation, in whole or in part, without TPIs prior written consent.
Copyright © 2025 Turner Pope Investments (TPI) Limited, all rights reserved.
The FTSE 100 dropped again on Friday as concerns about AI valuations returned with a vengeance overnight, with Nvidia giving up 6% gains to close negative.
The S&P 500 closed 1.6% lower, and the tech-focused NASDAQ shed 2.2%.
Such heavy selling was difficult for European traders to ignore, and the FTSE 100 lost 0.6% in early trade.
“It seemed, for a while, yesterday that everything was right with the world once again. Nvidia delivered strong earnings on Wednesday, reigniting some enthusiasm around the AI theme, and the September jobs report was a solid-ish one, albeit a report that had a few blots on the copybook under the surface,” explained Michael Brown Senior Research Strategist at Pepperstone.
While the lower start to trade on Friday will be a kick in the teeth for bulls that thought Nvidia had saved the day with a seemingly upbeat earnings report, London’s leading index did pick up from the worst levels as bargain hunters stepped in.
The FTSE 100’s cyclical sectors were heavily hit on Friday. Investors rotated out of miners, engineering firms, and technology-oriented investment trusts.
Babcock was also among the losers despite reporting a very respectable set of half-year results. Babcock shares were down 1.2%, most likely due to wider selling rather than any real disappointment given a 7% jump in revenue and higher profits.
“Babcock’s latest results will make even the most hardened defence investors sit up a little straighter. A 19% jump in first-half operating profit and a 25% dividend hike would be eye-catching in any sector; but in a business better known for long-cycle contracts and cautious guidance, it’s confirmation that Babcock is well and truly firing on all cylinders,” said Mark Crouch, market analyst for eToro.
“The British engineering and defence group has powered down debt, sharpened execution and turned itself into one of the London market’s most consistent outperformers. It helps, of course, that governments are rediscovering the urgency of naval capability. From Danish and Swedish frigate tenders to a Polish submarine partnership with Saab, Babcock is suddenly the name on every northern European admiral’s lips.”
JD Sports was another notable faller, as the decline after yesterday’s trading statement continued. JD is now trading at its lowest levels since July.
Persimmon was the FTSE 100’s top riser, up 2.2%.
ASOS’s fall from grace continues with another year of losses and falling revenues. Once revered as the UK’s leading technology company, ASOS is facing multiple headwinds that are only showing marginal signs of improvement.
ASOS shares were down over 6% on Friday after releasing full-year numbers that revealed a 14% decline in revenue and an adjusted loss before tax of £98m.
“ASOS’s latest results continue to show an uphill battle to execute a turnaround with shares down sharply this morning,” said Adam Vettese, market analyst for investment platform eToro.
“The company missed profit expectations, largely due to subdued consumer demand, reflecting broader economic worries and tighter household budgets. Many customers appear to be delaying purchases, or waiting out for deeper discounts which is a habit ASOS would do well to avoid relapsing into.”
Looking past the disappointing headline numbers, there were some signs of improvement. Gross margins increased to 47.1% from 43.4% and the £98m loss before tax was an improvement on last year’s £126m loss.
“Long-suffering ASOS shareholders will hope that the improvement in gross margins in today’s numbers signals better times ahead,” explained Chris Beauchamp, Chief Market Analyst UK at IG.
“Crucially the firm expects this trend to continue too. While its perhaps not the week to go big on AI, the theme made an appearance in these numbers and might help drive sales. We have seen too many false dawns in ASOS over the years, but perhaps this morning’s numbers mark the start of a recovery back to the highs of a year ago.”
The progress in losses and margins was driven by a focus on higher-value sales and lower discounting. But lower overall sales aren’t anything to cheer about.
The UK Investor Magazine was delighted to welcome Fawzi Hanano, Chief Development Officer at Cornish Metals, to discuss recent progress at their South Crofty tin mine.
London AIM and Toronto Venture listed Cornish Metals is on a mission to bring mining back to the South Crofty underground tin mine located in Cornwall. The mine closed in 1998 after a 400 year production record.
A Bitcoin payment processor is a service that assists merchants who are accepting Bitcoin and other cryptocurrencies, by converting that revenue stream into a clear, predictable cash flow. Rather than manage wallets and blockchain confirmations directly, the business links its website or app to a processor that generates payment details, following transactions on the network, updating order statues. In most cases, the processor also automatically converts incoming crypto into fiat or stablecoins, so a merchant can see its sales in a familiar currency without having to worry about volatility.
For the customer, paying with a Bitcoin payment processor is broadly the same as making a payment by any other online means: they select crypto at checkout, are shown how much crypto to pay and then simply transfer funds from their wallet using a QR code or address. The processor watches the blockchain and when the transaction gets enough confirmations, it replies a simple “paid” or “failed” status to merchant’s system. If something goes awry – perhaps the customer sends too little or too much – the processor can flag the problem and assist in remedying the payment without requiring support to wade through raw transaction data.
The primary service that Bitcoin payment processors provide to merchants is that of a specialized acquiring service for digital assets. It shortens the intermediaries that stand between buyer and seller, thus helping to reduce transaction costs as well as minimize the risk of declines from banks or card networks. Faster settlement, less payment blocking and ability to reach buyers in countries with relatively undeveloped banking systems all add up to a big trigger for successful checkouts. In addition, processors often provide added tools – dashboards, API integration, webhooks and reporting – that give finance and support teams (as well as developers) the ability to track crypto payments with the same kind of clarity and control they have over more traditional methods.
Disclaimers:
This publication is intended to be of general interest only and does not constitute legal, regulatory, tax, accounting, investment or other advice nor is it an offer to buy or sell shares in the Company (or any other investments mentioned herein).
Nothing in this publication should be construed as a personal recommendation to invest in the Company (or any other investment mentioned herein) and no assessment has been made as to the suitability of such investments for any investor. In making a decision to invest prospective investors may not rely on the information in this document. Such information is subject to change and does not constitute all the information necessary to adequately evaluate the consequences of investing in the Company.
The shares in the Company are listed on the London Stock Exchange and their price is affected by supply and demand and is therefore not necessarily the same as the value of the underlying assets. Changes in currency rates of exchange may have an adverse effect on the value of the Company’s shares (and any income derived from them). Any change in the tax status of the Company could affect the value of the Company’s shares or its ability to provide returns to its investors. Levels and bases of taxation are subject to change and will depend on your personal circumstances.
Past performance is not a reliable indicator of future returns. Any return estimates or indications of past performance cited in this document are for information purposes only and can in no way be construed as a guarantee of future performance. No representation or warranty is given as to the performance of the Company’s shares and there is no guarantee that the Company will achieve its investment objective.
Over the fourth financial quarter, the Net Asset Value (NAV) rose by +7.1%, bringing the return for the year to +8.3%.1 Investment performance is therefore ahead of the run rate implicit in the CPI+4% objective over both the quarter and for Majedie’s financial year as a whole. Returns were driven by bottom-up positions in areas as diverse as Chinese and European equities, specialist credit, and supply-constrained commodities. We believe this combination of nonconsensual fundamental ideas, sourced through our proprietary ideas network, makes Majedie a high-quality, repeatable, and complementary proposition for its shareholders.
Majedie’s portfolio holdings are marked-to-market regularly; its distinctive ‘liquid endowment’ approach does not include any allocations to private equity, venture capital or other hard-to value illiquid assets.
With major stock-market indices now fully valued, we believe the most attractive opportunities lie in overlooked international markets, select credit situations, and targeted real assets where structural imbalances exist between supply and demand.
In many respects, the quarter had an old-fashioned feel, with corporate earnings and central banks setting the tone. Most asset classes posted gains: global equities, as measured by the MSCI ACWI, rose +7.3%.
Emerging markets led the way, as China extended its recovery amid signs that stimulus was gaining traction and policymakers reaffirmed the stock market’s importance as a policy tool. Among developed markets, Japan stood out, advancing on the back of robust GDP growth, a weaker yen and a renewed trade accord that saw US tariffs fall from 25% to 15%. In the United States, most of the progress came from multiple expansion rather than earnings growth. With the S&P 500 now trading at 22x forward earnings, valuations once again appear stretched. Growth stocks (+8.6%) outpaced value (+6.0%), and for once small caps fared well as investors began to anticipate rate cuts.
Softer US labour and inflation data duly paved the way for a 25bps rate cut in September – the Fed’s first since 2024. Chair Jerome Powell hinted at further easing, albeit data dependent. In the UK, inflation overshot while growth undershot, sending gilt yields to 27-year highs. France’s budget tensions unsettled bond markets despite the ECB lowering its 2025 inflation forecast to 2.1%.
Credit spreads in developed markets have tightened to multi-year lows, while EM debt and Treasuries gained from the easing trend. Commodities diverged: oil and gas weakened, but gold continued its steady ascent. A softer dollar rounded off the quarter, lending further support to emerging-market currencies.
The portfolio is structured with the aim of achieving long-term growth, but returns will depend on market conditions, even as we take a circumspect view of broader markets. The largest constituents of major indices appear expensive and, in our judgement, offer little margin of safety. A generation of investors has grown accustomed to capital gains from the S&P 500 and private equity, sees the US dollar as a one-way trade, and government bonds, or “par” credit, as dependable sources of income and protection. Many portfolios are thus heavily concentrated in these familiar areas. By contrast, the assets we find most attractive remain largely absent from mainstream allocations. Years of under-investment have created scarcity and, with it, opportunity.
Our most rewarding investments have often come from areas where expectations are depressed and fundamentals improving. In such situations, even modest progress can have an outsized impact, because rising earnings often attract higher valuation multiples. Conversely, when starting valuations are stretched, small disappointments can trigger disproportionate losses. Our experience suggests that, especially at valuation extremes, it is the rate of change in earnings expectations that matters more than their absolute cadence. Today, most opportunities lie in a middle ground: neither so cheap as to ensure success, nor egregiously expensive. That is when discipline counts. Rather than rely on subjective judgements about valuation, we (and our external managers) seek situations where the market is mispricing reality, ideally with an identifiable catalyst to correct the anomaly.
We have avoided chasing ‘story’ stocks and other speculative assets that bounced back after this year’s tariff-induced volatility, many of which we feel are vulnerable to negative rate-of change. Our investment approach seeks to minimize the risk of permanent capital loss while aiming for returns independent of benchmarks. We prefer bottom-up opportunities in international markets, midcaps and eclectic value situations where fundamentals are improving from a low base.
Low expectations and improving fundamentals are most evident in Asia. Barely a year ago, many allocators had written off China as ‘un-investable’, convinced they understood the country’s structural challenges better than its own policymakers. Today, the same fickle allocators are increasingly fearful of missing out. China’s authorities have acted to revive domestic demand, curb uneconomic competition (‘involution’) and channel investment toward strategic technologies. The country’s massive build-out of AI infrastructure is viewed less as a business venture than investment in a national utility, designed to raise productivity and social resilience. We aim to capture this ‘slow bull market’, which appears to be built on sturdier foundations than the liquidity-fuelled rally of 2015.
Japan remains one of the most compelling reform stories globally. Corporate governance continues to improve, with management teams increasingly responsive to shareholder pressure for efficiency and returns.
Spreads on conventional investment-grade and high-yield debt sit near two-decade lows, meaning investors have seldom been paid less for taking-on the risk of default. Private credit (to which Majedie’s portfolio has no exposure) may promise higher yields but, in our view, in many cases it does not represent true value.
Our approach to credit is very different. We focus on asymmetric situations where downside should be limited to the recovery of principal, and where upside potential is considerable. Through our longstanding relationships with leading stressed and distressed investors, we seek to capitalise on divergence between the price of credit instruments of differing quality buckets. In US leveraged loans, for example, BB-rated bonds yield only 2.6% more than ‘risk free’ Treasuries of similar duration, whereas spreads on CCC paper are some 12.6%. This differential, twice the level of 2021, creates a very attractive setup for long-short credit managers because it allows them to mitigate market risk inexpensively, while pursuing situation-specific opportunities with higher return potential.
As long-term investors, we like tangible, cash-generating assets, the price of which depends on fundamental supply and demand considerations. This mindset steers us toward copper and uranium, two commodities that are scarce and strategically vital. They both sit at the nexus of global electrification, AI-related energy demand and essential investment in defence infrastructure.
As for gold, we understand its conceptual appeal and recognise that central banks are building reserves as confidence in the Dollar erodes. However, we have always struggled to make a fundamental case for owning an asset that has neither utility, nor cash flow. Interestingly, the historical link between gold and real interest rates appears to have broken down, perhaps reflecting that speculation may be partly behind the price action this year.
Majedie’s portfolio is built around high-conviction, non-consensual opportunities. In many cases, these can be described as ‘rate-of-change’ situations, where fundamentals are quietly improving but expectations remain low. Just as importantly, we have sought to avoid areas where expectations are so high that even a modest disappointment could be severely punished by the markets.
Whilst undoubtedly challenging, we believe environments like these often produce the most attractive asymmetry between risk and reward. With major indices now appearing fully valued, the most compelling opportunities lie in overlooked international markets, specialist credit, and real assets where structural imbalances persist. Majedie’s differentiated, bottom-up approach is designed to capture these mispriced situations with discipline and conviction.
