ECR Minerals upbeat on Lolworth project after sampling results

UK Investor Magazine
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ECR Minerals upbeat on Lolworth project after sampling results

ECR Minerals has announced significant early-stage results suggesting an extension of the gold footprint at its Lolworth Project in North Queensland, Australia.

Pan concentrate sampling south of Reedy Creek into Butterfly Creek indicates a likely gold source extending further south. Visible gold continues to be seen.

Peak soil sampling results at Gorge Creek West correlate along strike to a mapped quartz vein. Further investigations are planned.

Results from Flaggy Creek and Reedy Creek West soil sampling are due soon. Operations have been paused to evaluate the work plan.

Follow-up investigations into targeting other niobium and rare earth element stream anomalies are also in progress.

The Lolworth Project consists of three exploration permits operated by ECR’s wholly-owned subsidiary LUX Exploration. Numerous gold, niobium and REE anomalies have been identified.

“I am pleased to report good grades from pan concentrate sampling, which indicate that additional sources of gold could exist within the headwaters of Butterfly Creek and extend the region’s prospectivity some 2km further south of Reedy Creek,” said ECR Technical Director Adam Jones commented.

“Local landholders have reported to us that good sizeable gold discoveries were made in this watershed by early prospectors and the evidence of our work to date supports these theories. In addition to this, the field team are steadily building a picture of extended gold mineralisation in the headwaters of Gorge Creek West resulting from on-going results from soil sampling and outcrop mapping.”

Helium One shares crash as drilling suspended at Tai-3

UK Investor Magazine
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Helium One shares crash as drilling suspended at Tai-3

Helium One shares sank on Monday as the company announced further downbeat developments in their Tanzanian drill campaign.

The helium explorer has faced ongoing challenges this year with issues securing the appropriate equipment for their planned drill campaign. Today, the company announced an unfavourable outcome in the evaluation of the Tai-3 well.

Although Helium One successfully recovered downhole fluid samples confirming the presence of helium at its Tai-3 well, the company was unable to obtain basement samples as tools could not run past 1,430 meters due to washouts. The well has now been suspended for future deeper drilling into the basement target.

Investors will be encouraged by the presence of helium at the prospect, but challenges during the drill campaign ultimately left shareholders disappointed.

Helium One shares were down around 30% at the time of writing.

Samples yielded helium concentrations up to 8,320 parts per million (ppm), significantly above normal background levels of around 5ppm.

Wireline logs and petrophysical analysis demonstrated good quality reservoir sands in the Upper and Lower Karoo Group, interbedded with shales. No zones of interest were found in the Lake Beds or Nsungwe Formation.

A new location on the Itumbula prospect has been identified for the next well.

Helium One has been dogged by issues with rigs and drilling equipment this year, and today’s update revealed additional repairs are required before the drilling campaign can continue. Upon completing repairs, Helium One plans to continue its drilling campaign at the Itumbula prospect.

Ondo Insurtech shares fall as revenue growth disappoints

UK Investor Magazine
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Ondo Insurtech shares fall as revenue growth disappoints

Ondo Insurtech shares fell in early trade on Monday as the insurance technology company failed to inspire investors with tepid revenue growth in their recent half-year period.

The UK-based provider of property claim prevention technology, announced revenue of £1.2 million for the six-month period ended 30th September 2023, a 24% increase compared to £0.9 million in the same period last year. Recurring revenue from software and services grew 50% to £0.7 million.

Ondo shares were down 13% to 26p at the time of writing on Monday.

The company reported an operating loss of £1.6 million and an adjusted loss before tax of £1.9 million.

Ondo shipped 18,927 LeakBot units during the period, a 61% increase versus 11,752 units last year. Total registered customers grew 77% to 84,000.

The company signed new US deals with Mutual of Enumclaw and Pure Insurance to roll out in Washington and New York states. It also agreed to a 5-year rollout with Sweden’s largest home insurer Länsförsäkringar.

After the reporting period, Ondo signed with Nationwide, a top 10 US home insurer, to make LeakBot part of their Smart Home program. Addressable households under contract increased 394% to 2.5 million, and rises further to 5 million with the Nationwide deal.

The increase in addressable households was largely priced in last week after the announcement of the Nationwide deal, and today’s numbers serve as a reminder the company is trading at relatively punchy sales and earnings multiples.

Aquis weekly movers: Marula Mining progresses Blesberg lithium project

Andrew Hore
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Aquis weekly movers: Marula Mining progresses Blesberg lithium project

Marula Mining (LON: MARU) has completed the phase 1 drilling programme at the Blesberg lithium and tantalum mine. The 21 holes were finished ahead of schedule and assay results are awaited. Phase 2 drilling has started and 15 out of 21 holes have been completed. Financial forecasts for the planned open pit hard rock mining plan. The share price jumped 24.4% to 12.125p.

Vinanz Ltd (LON: BTC) has already spent some of the money raised at the beginning of November to acquire 171 bitcoin miners in North America. The plan is to buy a total of 250 bitcoin miners. Vinanz currently holds 9.1 bitcoin. The share price rose a further 14.8% to 7.75p.

Cadence Minerals (LON: KDNC) says its subsidiary has issued a request for consultations and negotiations to the Mexican government concerning the possible revocation of the mining concessions for the Sonora lithium project. These concessions are held by joint venture companies, where Cadence Minerals has 30% stakes. The share price improved 7.2% to 6.7p.

FALLERS

Quantum Exponential (LON: QBIT) has converted its £450,000 investment in Universal Quantum in exchange for 84 million shares at 5319.47p each. A one-for-1,000 share split will happen after the share issue. This means that the subsequent 84,000 shares will be 0.51% of buildable quantum computers developer Universal Quantum. The share price is 18.7% lower at 1.625p.

Wishbone Gold (LON: WSBN) says initial mineralised results from the first half of the Cottesloe project in Western Australia. The company expects full results during next January. The share price dipped 11.9% to 1.85p.

Director deals: Is Made Tech worth buying yet?

Andrew Hore
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Director deals: Is Made Tech worth buying yet?

At a time when many of the new AIM admissions over the past three years have performed poorly, one of the worst is Made Tech Group (LON: MTEC), which joined AIM in September 2021 when it raised £15m at 112p a share. The share price has slumped to 10.75p.

Chief operating officer Chris Blackburn acquired 310,000 shares at 10.4p each. That takes his stake to 14.5%. Back in July, chief executive Rory MacDonald acquired 897,507 shares at 17.14p each.

Chris Blackburn and Rory MacDonald are deemed to be a concert party and are not allowed to take their combined stake above 43.04%. The level is...

AIM weekly movers: Mars bids for Hotel Chocolat

Andrew Hore
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AIM weekly movers: Mars bids for Hotel Chocolat

Hotel Chocolat (LON: HOTC) is recommending a 375p/share bid from Mars, which values the chocolate company at £534m. The share price soared 170% to 366p and it has not been this high for 18 months. Mars is keen to help Hotel Chocolat expand into new regions. The track record of the current management when it comes to international expansion has been mixed and it will help to have a larger company with greater resources backing the expansion. Shareholders can accept an alternative offer of one rollover share in the bid vehicle for each share. The value of these shares will be dependent on the performance of the business, and this would be taking a risk.

Verici Dx (LON: VRCI) has entered into an exclusive licence agreement with Thermo Fisher for its pre-transplant prognostics. This will generate staged payments of $5m over the next 12 months, plus future royalties of per test. That means that Verici Dx will have enough cash until the end of 2024. Thermo Fisher has the commercial expertise to roll out the technology and it will further develop the product. The share price increased 56.5% to 9p.

AMTE Power (LON: AMTE) has secured a short-term financing and the share price has recovered 54.1% to 1.04p. The battery technology developer will receive £2.5m from a subscription by Pinnacle International Venture Capital at 1.7p/share and it is also providing a £200,000 convertible loan facility. A placing will raise a further £400,000 at 0.5p/share. A general meeting is required to approve the subscription.

City Pub Group (LON: CPC) is also the subject of an agreed bid. Young & Co’s Brewery (LON: YNGA) is offering 108.75p in cash and 0.032658 of an A share for each City Pub Group share, valuing it at 145p/share or £162m. The share price jumped 52.5% to 136.5p. Young’s has been seeking to grow its managed pubs business and believes it is rare to have the opportunity to acquire such an attractive portfolio of pubs. The deal will increase the number of pubs owned by 50 to 279. A significant amount of City Pub Group’s central overheads of £5.6m could be saved by the combined group and there could be other savings. Young’s shares rose 1.86% to 1095p.

FALLERS

Nickel project developer Horizonte Minerals (LON: HZM) is reducing construction activities at the Araguaia nickel project while it continues financing discussions. The project has enough working capital until mid-December, although this could be extended into the first quarter of next year. This is when the due diligence of the finance providers should be completed. The share price slumped 54.1% to 8.6p, which is just above the low on the week.

Antimicrobial technology developer Byotrol (LON: BYOT) expects modest full year growth in full year revenues, which means that the loss will be slightly higher than previously anticipated. Half year sales were £2m. IP deals are still difficult to forecast. There should be £300,000 in cash at the end of March 2024, down from £500,000 at the end of September. The share price fell 38.9% to 0.55p to a new low.

Trading recommenced in Rockfire Resources (LON: ROCK) shares on Monday afternoon after it revealed it was not going ahead with the acquisition of Emirates Gold because of UK sanctions on the current owner Paloma Precious. Rockfire Resources still has a 10% stake in Emirates Gold. Later in the week it said Sunshine Metals has commenced drilling at the Lighthouse tenement in Queensland. This is part of the option for Sunshine Metals to earn up to 75% of the tenement by spending $2.2m over three years. This has helped the share price to recover but it was still 38.4% lower at 0.225p.

Jarvis Securities (LON: JIM) has confirmed it is not paying a fourth quarter dividend. The FCA is planning a further review into the company’s operations, including the approach to uninvested cash and interest retention. This report has to be delivered by the end of February 2024.The voluntary restrictions on the business are continuing and another review is required before they can be lifted. The reviews have cost more than £1.3m this year. The share price declined 37.4% to 48.5p. That is the lowest it has been for eleven years.

Knight Frank Survey: 60% of housebuilders are providing non-cash incentives

Eve Katz
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Knight Frank Survey: 60% of housebuilders are providing non-cash incentives

Global property consultancy Knight Frank released its Q3 2023 Land Index and Housebuilder Survey, which highlights that in response to tough housing market conditions in the UK, almost 60% of surveyed housebuilders are providing non-cash incentives.

According to the report, among respondents, 59% are offering items like carpets or white goods, over 40% contribute to legal fees or stamp duty, and nearly a quarter provide deposit contributions. Additionally, 16% are giving cashbacks or mortgage subsidies.

The major challenges faced by the sector in Q3 include planning delays (80% of respondents), concerns about land availability, mortgage availability, and cost (all at 47%). About 36% of respondents express worries about buyer sentiment and the UK economic outlook.

According to Charlie Hart, Partner at Knight Frank, “It’s interesting to see a significant increase in the number of housebuilders offering various incentives to attract buyers. This only emphasises the need for the industry to adapt and remain agile as the market evolves.

“It’s clear to see that they are doing all they can to generate sales, and throughout these challenging times, it’s now more important than ever to have a government that understands the genuine challenges facing the market. The industry is looking for positive policy direction in the autumn statement.”

In total, 48% of housebuilders anticipate a decline in average land values in the last quarter of the year compared to Q3. Another 48% believe they will remain unchanged, according to the latest survey of 54 volume and SME housebuilders by Knight Frank. Only 5% predict an increase.

Anna Ward, Associate in the Residential Research team at Knight Frank, said that,”cost and buyer sentiment have risen up the agenda over the past year as key concerns in our survey. Several other headwinds are also limiting development, from planning delays to high build costs. Looking ahead, the direction of the UK economy is likely to have the biggest impact on the housebuilding sector over the next few months.”

The pound falls against the dollar as retail sales decline in September

Eve Katz
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The pound falls against the dollar as retail sales decline in September

The pound falls against the dollar as retail sales fall in September

Office for National Statistics (ONS) retail data showed on Thursday that in September 2023, retail sales volumes declined by 0.9% as the pound fell against the dollar.

Looking at the quarter, sales volumes dropped by 0.8% in the last three months.

In their September 2023 retail data report, ONS indicates that it looks like consumers are struggling against the cost of living crisis.

The ONS retail report further states that non-food store sales volumes decreased by 1.9% in September 2023, with retailers attributing the decline to ongoing cost of living pressures and unseasonably warm weather affecting autumn clothing sales.

According to Danni Hewson, head of financial analysis, “retail sales have fallen to the lowest level since February 2021, when the country was in the middle of the third national lockdown. Many stores had to keep their doors closed, and those that could open had strict social distancing measures in place. (square brackets) Fast forward a couple of years, and these numbers are particularly concerning for retailers because this isn’t February 2021; these numbers were for the month of October, when consumers traditionally begin their Christmas shopping.”

Further reports that in September 2023, total non-food store sales volumes, including department stores, clothing stores, household stores, and other non-food stores, decreased by 1.9%, contrasting with a 0.3% increase in August 2023.

Food stores experienced a 0.2% increase in sales volumes in September 2023, following a 1.4% rise in August 2023.

These include independent bakeries, Italian shops, butcheries, luxury brand stores, and luxury alcohol brands.

Within the non-food category, household goods stores reported a 2.3% decline in sales volumes, primarily attributed to decreases in furniture and lighting stores.

Non-store retailing, primarily online retailers, saw a 2.2% decrease in sales volumes in September 2023. They had previously dropped 0.9% in August.

Value and brand deals supermarkets “maintained a bit of growth, but specialty stores like butchers and artisan bakers saw trade drop off.”, Hewson said.

Danni Hewson adds, “The question at hand is: are we saving up our cash, squirrelling it away in order to make the most of those big promotional days like Black Friday, or have price pressures pushed people to rethink Christmas plans entirely?”.

Automotive fuel sales volumes rebounded by 0.8% in September 2023, showing a recovery from a 1.0% decline in August 2023.

AIM movers: Strong cash generation for Parkmead, shortage of cash for Real Good Food

Andrew Hore
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AIM movers: Strong cash generation for Parkmead, shortage of cash for Real Good Food

Strong cash generation at Parkmead Group (LON: PMG) boosted the share price. The Dutch gas assets generated £6.5m in cash in the 12 months to June 2023. Production should increase this year. The Kempstone Hill wind farm is starting to generate revenues. There are £188m of tax losses. The share price jumped 26.3% to 18p, although it has still fallen by two-thirds this year.

AMTE Power (LON: AMTE) has secured a short-term financing and the share price has recovered 12.2% to 1.15p. The battery technology developer will receive £2.5m from a subscription by Pinnacle International Venture Capital at 1.7p/share and it is also providing a £200,000 convertible loan facility. A placing will raise a further £400,000 at 0.5p/share. A general meeting is required to approve the subscription.

Jersey Oil and Gas (LON: JOG) and NEO Energy are buying the Western Isles floating production, storage and offloading (FSPO) vessel for the planned redevelopment of the Buchan field. NEO Energy will buy the vessel and Jersey Oil and Gas, which holds a 50% working interest in the field, will receive $9.4m from NEO Energy as part of the farm-in deal. Zeus estimates core NAV of 408p/share. The share price improved 13.1% to 216p.

AFC Energy (LON: AFC) is purchasing Octopus Hydrogen’s UK mobile hydrogen storage and distribution assets. These assets can be used to provide a hydrogen fuelling service for H-Power generator units rented by new partner Speedy Hydrogen Solutions and other future users of hydrogen powered equipment. The share price rose 7.8% to 15.76p.

FALLERS

Real Good Food (LON: RGD) is the highest faller on the day for a 12.1% decline to 1.45p following the disposal of Rainbow Dust Colours for £800,000 and a warning of tough trading, partly due to a shortage of cash. The remaining business is cake decorations maker JF Renshaw and its future is uncertain.

Tekcapital (LON: TEK) investee company Innovative Eyewear has launched a new Lucyd Dock product charging accessory. The Tekcapital share price dipped 6.18% to 8.5p.

SkinBioTherapeutics (LON: SBTX) has raised £3m from a placing at 19p/share, while a retail offer of up to £250,000 is ongoing and closes on 20 November. The cash will finance further studies, including one for the potential acne treatment, and the roll out of psoriasis treatment Axis-PS. The share price slipped 4.65% to 20.5p.

Future Metals (LON: FME) has exercised its option to acquire Osprey Minerals, which has an exploration tenure next to the company’s Panton platinum group metals project in Western Australia. The initial payment is 18.4 million shares, with a further A$625,000 of deferred consideration depending on the level of exploration drilling. The share price fell 2.38% to 2.05p.

Oil prices bounce but head for fourth week of declines

Eve Katz
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Oil prices bounce but head for fourth week of declines

Oil price staged a minor rally on Friday as traders covered shorts after another week of declines.

At the time of writing on Friday, Brent crude is up 1.24%, while WTI crude is up 1.21%.

Brent crude has stabilised above $77 but is heading for its fourth consecutive weekly drop.

WTI crude was trading at $73.80 per barrel, while Brent crude is $78.39.

According to Sophie Lund-Yates from Hargreaves Lansdown, even though “this (what this) outweighed concerns around OPEC+’s decision to go ahead with voluntary supply cuts,”

Additionally, “prices are still elevated compared to pre-pandemic, but this window does potentially offer some respite to businesses and consumers if it can be sustained—and in the short term, that will depend on escalating tensions in the Middle East”, said Lund-Yates.

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