Petro Matad to start production in coming days

UK Investor Magazine
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Petro Matad to start production in coming days

London-listed Mongolian oil firm Petro Matad Limited is poised to commence production at its Heron-1 well in eastern Mongolia’s Block XX by October 25, according to a statement released on Tuesday.

The company is now set to start generating revenue more than a decade after oil was first discovered in Petro Matad’s Block XX field.

Petro Matad has completed all construction and equipment installation at the well pad, with final commissioning of essential infrastructure currently underway.

Senior government officials, including representatives from the Ministry of Industry and Mineral Resources, will attend a production startup ceremony at the site to usher in the start of production.

A crucial cooperation agreement with PetroChina Daqing Tamsag is nearing completion, though it is awaiting final approval from PetroChina’s headquarters. The agreement covers vital operational aspects, including the processing, export, and sale of Block XX production through PetroChina’s facilities, located 20 kilometers north in Block XIX.

Despite pending administrative details, notably the administration fee to be paid to PetroChina, all parties have agreed to commence production operations before the winter shutdown in late November. This timing is critical as production and processing activities will continue through the winter months, making the October startup essential for operational continuity.

“We have waited a long time to get the Heron-1 well into production and we are pleased to have reached this important milestone. We very much appreciate the support of the Ministry and MRPAM and the cooperation that PetroChina is providing,” said Mike Buck, CEO of Petro Matad.

“We are also very grateful for the hard work and enthusiasm of our dedicated team and for the patience and continued support of our shareholders.”

Petro Matad shares were 5% higher at the time of writing.

Crypto Academies: Bridging the Knowledge Gap for Aspiring Crypto Traders in Financial Markets

UK Investor Magazine
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Crypto Academies: Bridging the Knowledge Gap for Aspiring Crypto Traders in Financial Markets

As the cryptocurrency market grows, many aspiring traders are eager to enter but lack the foundational knowledge to navigate this complex space. Crypto academies have emerged to fill this gap, offering structured education that helps traders understand the intricacies of the market. These educational platforms provide new traders with the knowledge and tools necessary to trade successfully, reducing the risks associated with uninformed decision-making. The Wirex crypto academy is one platform dedicated to helping traders learn the essentials of crypto trading.

Why Education Is Critical for Crypto Traders

In the volatile cryptocurrency market, understanding the basics of trading is essential. Without proper education, traders can fall victim to emotional decisions, misinformation, or a lack of understanding of market dynamics. Crypto academies provide a structured way for new traders to gain the insights they need to trade responsibly and confidently.

What Crypto Academies Offer

Most crypto academies offer a variety of resources to cater to traders at different experience levels. These resources typically include:

  • Courses: These are step-by-step lessons that cover everything from beginner topics like ‘What is cryptocurrency?’ to advanced trading strategies.
  • Webinars and Tutorials: Live sessions and recorded videos teach traders how to analyze markets, understand trends, and execute trades.
  • Articles and Guides: In-depth written content that breaks down complex concepts into understandable terms for all novice or experienced traders.

Bridging the Knowledge Gap for Aspiring Traders

Crypto academies are especially important for beginners, as they help aspiring traders grasp essential concepts like technical and fundamental analysis. Through structured education, traders learn how to interpret charts, recognize patterns, and make informed decisions based on data and market sentiment. In addition, risk management techniques are often a major focus, teaching traders how to safeguard their assets in an unpredictable market.

The Role of Crypto Academies in Financial Markets

Educational platforms such as crypto academies contribute significantly to the maturity of the cryptocurrency market. By educating traders, these platforms help bring more stability to the market, as educated traders are more likely to avoid common pitfalls. As more traders become knowledgeable, it also signals to institutional investors that the market is growing in maturity, which can further drive investment.

Why Wirex’s Crypto Academy Stands Out

Among the many educational platforms, Wirex’s crypto academy stands out for its comprehensive approach to crypto education. It offers resources tailored to different experience levels, from beginner traders just starting to advanced traders looking to hone their skills. The academy covers everything from basic trading concepts to advanced market strategies, ensuring traders of all skill levels can access valuable, actionable information.

Challenges Faced by New Crypto Traders

Crypto academies provide comprehensive education to help aspiring traders understand various aspects of the cryptocurrency market. The table below highlights some of the key topics typically covered in these educational platforms:

  • Blockchain Fundamentals – Understanding the underlying technology of cryptocurrencies, including how blockchain works.
  • Cryptocurrency Basics – Learning about different types of cryptocurrencies, their uses, and market relevance.
  • Technical Analysis – Techniques for analyzing market trends, charts, and indicators to make informed trading decisions.
  • Fundamental Analysis – Evaluating the intrinsic value of a cryptocurrency based on news, developments, and overall market health.
  • Risk Management – Strategies to minimize losses and protect investments in a volatile market environment.
  • Trading Strategies – Exploring various trading methodologies such as day trading, swing trading, and long-term investing.
  • Wallets and Security – Best practices for securing digital assets, including using different types of wallets.
  • Regulations and Compliance – Understanding legal considerations and regulatory frameworks affecting cryptocurrency trading.
  • Decentralized Finance (DeFi) – An introduction to DeFi platforms, their operation, and their impact on traditional finance.
  • Emotional Discipline – Techniques for managing emotions and maintaining discipline to avoid impulsive trading decisions.

By covering these topics, crypto academies equip traders with the essential knowledge and skills to navigate the financial markets confidently and responsibly.

Challenges Faced by New Crypto Traders

New traders entering the crypto market often face challenges such as market volatility, understanding the technical aspects of blockchain, and managing emotional reactions like FOMO (Fear of Missing Out). Crypto academies help by providing strategies to manage these challenges, such as risk management techniques, and by teaching traders to base their decisions on data rather than emotion.

Conclusion

Crypto academies provide the essential education needed to bridge the knowledge gap for aspiring crypto traders. By offering structured learning resources, platforms like Wirex’s Crypto Academy are helping to prepare traders for the fast-paced, volatile world of cryptocurrency. As the market continues to grow, the role of education in fostering responsible and informed trading cannot be overstated.

Consider Investment Evolution Credit (IEC) shares amid ‘Buy Now, Pay Later’ scrutiny

UK Investor Magazine
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Consider Investment Evolution Credit (IEC) shares amid ‘Buy Now, Pay Later’ scrutiny

After many years of delay by the regulator and previous government, consumers are finally being offered protection against the risks of ‘Buy Now, Pay Later’ (BNPL).

Many see it as a harmless method of spreading out payments for everyday purchases, but it can have unintended consequences for those who don’t adhere to payment schedules. 

While BNPL has historically not impacted credit scores, agencies like Experian are starting to incorporate it into reports and make it available to lenders.

There can also be high fees associated with using BNPL.

A survey by comparison site Finder.com revealed 53% of people using BNPL had paid late fees over the past 12 months, meaning an estimated 10 million people in the UK were being charged for missing payments.

Until now, the impact has been limited to a financial penalty, but should the trend of missing payments continue as credit agencies include BNPL in credit scores, it could ruin the aspirations of millions of people seeking credit for important life events.

Consumer fintech company Investment Evolution Credit has identified the opportunity to better serve millions of people in the UK with loans that better suit their needs and provide them with a transparent method of financing those tricker periods of life that over half of the people in the UK experience.

“Changes to ‘Buy Now, Pay Later’ regulations are well overdue,” said Marc Howells, CEO of Aquis-listed Investment Evolution Credit.

“Millions of people in the UK deserve better protection. Many consumers are unaware of the risks of using BNPL and its impact on their financial futures. We hope strengthening consumer protection by raising awareness of the risks of BNPL will spur consumers to seek alternative forms of finance that are better suited to their circumstances.”

Taking a broad perspective of the the opportunity that lies ahead of IEC and their investors, IEC has a large addressable market of millions of consumers in the UK. According to data compiled by FCA in their Financial Lives survey, 57% people in the UK use some form of credit.

In addition to BNPL, many individuals will use harmful forms of credit, including payday loans or high-interest credit cards. Of course, mainstream banks offer options such as overdrafts and loans, but even these can be expensive or difficult to access, especially for the more vulnerable.

The heart of IEC’s mission is to provide a better-suited product for people using existing alternatives that may not support their financial futures.

Speaking at a recent UK Investor Magazine event, Marc Howells, CEO of IEC, was upbeat about the company’s outlook and confident that it is well-placed to take advantage of the gap in the market. 

Payday lenders, who were rightly reprimanded for unethical practices, have left a canyon-sized hole in the consumer credit market. The sector is also ripe for innovation by a company with a strong process designed to protect consumers and enhance access to credit.

Investment Evolution Credit has set about meeting this demand.

Through establishing operations in the US, IEC has developed proprietary AI-driven technology designed to provide consumers with finance that suits their needs. In the US, the company offers loans of up to £10,000 at rates between 19.9% and 49.9%. Plans are to replicate their early success in the UK.

IEC can enter the UK market during a transition period without the legacy issues associated with many lenders, which investors should see as a major positive. The company is applying to the FCA to begin operations in the UK in 2025.

IEC is certainly a company to watch as it builds momentum.

Like many Aquis-listed shares, those investors interested in purchasing IEC shares may have to ring their broker for a quote. Some platforms, IG being one of them, offer electronic dealing in Aquis shares and can be dealt easily like any other stock on trading platform.

FTSE 100 turns negative as budget nerves set in

UK Investor Magazine
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FTSE 100 turns negative as budget nerves set in

The FTSE 100 tiptoed towards record highs early on Monday as additional measures by China to stimulate the economy boosted interest in risk assets.

However, the gains were short-lived and the index turned negative as the session progressed with London’s leading index trading down by 0.2% at the time of writing. The FTSE 100 all time record high at 8,445 is providing a difficult mark to reach despite consistent record highs for US stocks.

Early gains were driven by mining companies that managed to hold onto gains as the session developed. It was the domestic facing side of the market that suffered and dragged the market lower as concerns about the budget mounted.

China

After leaving the market hanging for what seemed like an eternity after the pandemic, Chinese authorities have responded to calls for stimulus with a plethora of measures in recent weeks. The most recent area of focus was the consumer and changes to borrowing rates to encourage higher spending. 

The latest developments saw the FTSE 100’s miners rise on hopes of greater demand for natural resources.

“The FTSE 100 has started the week on a positive foot, helped by the extra stimulus being thrown at China’s economy. Miners were among the gainers in early trade after the People’s Bank of China cut key lending rates,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“The one-year and five-year loan prime rate have been slashed by 25 basis points. These benchmarks are used to price consumer loans and mortgages, and the idea is that the move will encourage lending and spending and help mend the ailing property market. There are also hints from authorities that there may be further cuts to the amount banks need to hold in reserve, to try and boost lending further.”

The spectacular rally in gold continued on Monday with the safe haven touching highs above $2,700. Silver also marched higher. This propelled Fresnillo 5% higher to the top of the FTSE 100 leaderboard.

Unfortunately, the optimism around China and the miners was unable to keep the FTSE 100 positive and issues closer to home weighed on the index.

UK-focused stocks

New data from Rightmove has highlighted the impact the Budget was having on the property market. Far from helping the UK economy shift up a gear, the new Labour government’s messaging and rhetoric has done nothing but curtail the UK economy in the early months of the new parliament. 

This was evident in Rightmove’s data that showed the pace of growth in house prices slowed ahead of the upcoming budget as home buyers held off making purchases. The data led to a drop in housebuilding stocks as investors booked gains after a recent rally.

Intertek was the top faller after being downgraded by analysts at RBC Capital.

Tristel beats expectations and is yet to achieve potential in the US

Andrew Hore
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Tristel beats expectations and is yet to achieve potential in the US

Disinfection products supplier Tristel (LON: TSTL) beat expectations in the year to June 2024. There were initial revenues from the US, but they will take time to build up.

Sales grew in nearly every market, with small dips in Australasia and China. A price increase in the UK, combined with higher volumes, helped hospital medical device decontamination jump 38%. The main growth in sales is in the UK and Europe.

In the year to June 2024, revenues improved from £36m to £41.9m, while pre-tax profit rose from £6.2m to £8.2m. There was a reallocation of costs from overheads to cost of sales, so this affected comparatives. The total dividend was raised 29% to 13.52p/share.

There was a £130,000 contribution from royalties on sales of ultrasound disinfection products in the US. It is still early days in the process of recruiting new hospital clients, but distributor Parker has strong relationships in this area.

Management is hopeful that FDA approval for Tristel’s ophthalmology disinfectant will be received by the end of the year. Then the decisions on how the product will be distributed will be made. It is unlikely to contribute to this financial year and there is nothing in the forecasts.

Tristel is expecting European regulatory approval for additional Cache surface disinfectant products, and this should accelerate their growth, which has lagged the rest of the business. This is a lower margin business, but scale could improve them.

The balance sheet remains strong with net cash of £8.8m. Cavendish has raised its 2024-25 pre-tax profit forecast from £7.4m to £8.5m. A dividend of 14.87p/share is estimated. Pre-tax profit could increase to £10.5m in 2025-26, as North American revenues improve – even without a contribution from the ophthalmology product.

New chief executive Matt Sassone has only been in the job a few weeks. He is still reviewing strategy, and he has significant experience in the increasingly important North American market.

The share price dipped 1.9% to 387.5p. That is 22 times prospective earnings with a forecast yield of just under 4%. The high multiple reflects the track record and the potential for revenues from North America.

Cerillion profit upgrade

Andrew Hore
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Cerillion profit upgrade

Panmure Liberum has upgraded its forecasts for AIM-quoted telecoms enterprise software provider Cerillion (LON:CER) following an upbeat trading statement. The company continues to grow faster than its underlying market.

Revenues grew 14% in the second half, enabling profit to be better than expected. There are record new orders and this underpins further growth in the next couple of years.

The €12.4m order from the previously unnamed Virgin Media Ireland is contributing to the growth. It probably generated £6m last year. This is the first contract with a tier-1 telecoms company and could help to win other contracts with this level of business.

In the year to September 2024, revenues were 12% ahead at £43.8m. Panmure Liberum has raised its pre-tax profit forecast from £18m to £19m.

Cerillion’s net cash pile has increased to £29.8m and could reach £50m by the end of September 2026. Panmure Liberum has left its 2024-25 and 2025-26 forecasts alone, but they are likely to be revised at the time of the full year figures.

The target price has been raised from 1700p to 1850p. The share price improved 2.89% to 1780p.

AIM movers: XL Media sells North American operations and Merit Group slips

Andrew Hore
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AIM movers: XL Media sells North American operations and Merit Group slips

Online marketing services provider XL Media (LON: XLM) is selling its North American business for up to $30m in cash, with $20m payable on completion and up to $10m in April – based on revenues and gross profit in 2024. Some cash should be redistributed to shareholders by the end of the year. The company will effectively become a cash shell. The share price jumped 37.1% to 12.75p.

EnergyPathways (LON: EPP) has been asked by the UK government to participate in the Hydrogen Storage Business Model. This will help to define the new investment support scheme. The first Hydrogen Storage Allocation Round should be in 2025. The share price rebounded 23.2% to 4.25p.

Helium explorer Helix Exploration (LON: HEX) has successfully re-entered and deepened the wellbore on the Clink #1 well at the Ingomar Dome project. The well will be completed and tested. There could be multiple zones to test. The share price improved 12.2% to 23p.

Light Science Technologies (LON: LST) continues to win fire protection business. An existing customer has placed a further order worth £1.17m. The full year contribution from fire protection should be between £1.5m and £1.7m with additional visibility for 2025. The share price rose 7.69% to 2.8p.

Oil and gas company Deltic Energy (LON: DELT) has a 25% working interest in the Selene project, where drilling has reached target depth. There are gas shows throughout the Leman Sandstone reservoir. Final results of sampling and logging should be available at the end of October. Deltic Energy is reducing costs and seeking new opportunities, possibly in sub-Saharan Africa. The share price increased 5.43% to 4.85p.

FALLERS

Information and data publisher Merit Group (LON: MRIT) has been hit by the ending of project work and the lack of replacement work. Sales resource is being added, but that will take time to boost revenues. Canaccord Genuity has changed its 2024-25 forecast from a £900,000 profit to a loss of £800,000 after a 11% reduction in expected revenues to £18.5m, which is lower than the 2022-23 figure. A return to profit is forecast for next year. There are management changes that are flagged for next year. The share price slumped 38% to 37.5p.

Ethernity Networks (LON: ENET) has received a £195,000 warrant exercise notice from New Technology Capital Group, which gives it 21.6% of the enlarged share capital. This led to the issue of 195 million new shares. There is a remaining balance of £170,000, although this varies if the exercise price is higher than 0.1p/share. The share price dipped 29.9% to 0.1875p.

Audio visual products distributor Midwich Group (LON: MIDW) says the market remains challenging, particularly in Germany. There is unlikely to be an improvement this year, although gross margin should be maintained. Operating profit will be well below the 2023 level. Three small UK acquisitions have been made for £12m. These are higher margin businesses. There will be a trading update on 20 January. The share price fell 15.9% to 269p, which is the lowest level for eight years.

Vast Resources (LON: VAST) produced 229 DMT of copper at the Baita Plai project in the second quarter, down from 613 DMT in the previous quarter. Reorganisation and delays in obtaining finance held back production. Operational breakeven has been reduced. Gold production and recovery levels improved at the Aprelevka mine, where Vast Resources has a 4.9% interest. Second quarter gold production was 2,878 ounces, up from 1,808 ounces in the previous quarter. Reprocessing of tailings has started, and production costs reduced. Production has recommenced at the Takob project. The share price declined 7.14% to 0.0975p.

Helix Exploration shares jump on Montana helium drilling update

UK Investor Magazine
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Helix Exploration shares jump on Montana helium drilling update

Helix Exploration has announced progress in its helium exploration efforts at the Ingomar Dome Project in Montana. The company provided an operational update on the Clink #1 well, highlighting drill progress and advancements towards testing.

Helix Exploration shares were 12% higher in early trade on Monday following the announcement.

Investors were evidently pleased to learn the company successfully controlled the Mowry formation by setting 7-inch intermediate casing through the entire interval, reaching a depth of 2,622 feet. This was followed by a successful re-entry and deepening of the wellbore to 8,550 feet.

Helix Exploration is now preparing to complete the well with production casing and commence testing. If multiple formations are identified as suitable for testing, the company plans to conduct isolated tests on each zone, working from the bottom up. This methodical approach will allow for a comprehensive evaluation of the well’s potential.

During the deepening process, the company discovered a second thick Cambrian sandstone horizon at 8,290 feet, extending to the total depth. Helix said that while the initial goal of reaching Precambrian rock was not achieved, this new finding could potentially hold significant value for the project.

“The successful re-entry and subsequent deepening of Clink #1 is a significant milestone for the Company.  I am delighted with the re-entry efforts and the exceptional work of our engineering team, as we see promising results in each of the target formations,” said Bo Sears, CEO of Helix Exploration.

Sosandar – Capitalised at £26.7m, with £8m cash, making £1m profit, this growth-focussed women’s clothing group’s shares look inexpensive at 10.75p 

Mark Watson-Mitchell
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Sosandar – Capitalised at £26.7m, with £8m cash, making £1m profit, this growth-focussed women’s clothing group’s shares look inexpensive at 10.75p 

Tomorrow morning Sosandar (LON:SOS) will be announcing its Trading Update for the six months to end-September. 

I have a feeling that the statement could well indicate that the women’s clothing group is going to bounce back into profits in the year to end-March 2025. 

Although its shares are trading on a heavy price-to-earnings ratio, I am not put off because there is a certain determination in its growth strategy. 

The Business  

Sosandar, which was founded in 2016 and listed on AIM in 2017, is one of the fastest growing women’s fashion brands in the UK targeting style-conscious women who have graduated from lower quality, price-led alternatives.  

Over 1m women now have items of the company’s clothing hanging in their wardrobes, its product range is diverse, providing an array of choice for all occasions across all women’s fashion categories.  

The company, which sells predominantly own-label exclusive product designed and tested in-house, states that for its underserved audience it offers fashion-forward, affordable, quality clothing to make them feel sexy, feminine, and chic.   

Sosandar’s success has been built on an exceptional product range, seamless customer experience and impactful, lifestyle marketing, all of which is underpinned by combining innovation with data analysis.   

The group’s growth strategy has been focused upon continuing to grow brand awareness and expand its addressable market and routes to market, reaching customers wherever they wish to shop.   

The company sells through Sosandar.com and has brand partnerships in place with Marks & Spencer, The Very Group, JD Williams, J Sainsbury, The Selfridges Group, and Next. 

Its Strategic Goals 

Its Management is aiming to score at least a 10% pre-tax profit margin going forward. 

It is aiming to more than double its turnover to £100m+ revenue as it progresses. 

High on its agenda is gaining further growth through operating in scale and at greater margin. 

One of its main visible growth pushes is through the opening of stores to complement its online channel. 

And finally, it is focussed upon it expanding its brand. 

The Stores Push 

The group’s Management believes that its clients would spend more money with the group if it had more stores – giving customers the chance to touch, feel and try on product in store.  

Its programme is to put together an estate of its own stores, in various locations, such as affluent market towns, some city centres, a number of shopping centres – all of which need to be situated at the right location within the town, in areas of high footfall. 

Ideally, each planned store should occupy some 1,500 sq ft, be on a 5-year term lease with a 3-year break. Self-funded capex of £250,000 per unit, carrying initially some £50,000 of stock, with an expected £150,000 property cost, helping to contribute between £750,000 to £1m per annum as an average per store. 

Two weeks ago, the group announced that it had signed a lease agreement for its 4th store, in Cardiff’s St David’s Centre.  

That follows the recent store openings in Chelmsford, Marlow and the Metrocentre, as well as its in-store concession at Arnotts in Dublin, Ireland’s oldest and largest department store. 

I believe that a number of other store opening targets are at various stages of negotiation, so it is quickly becoming visible that Sosandar is making quite a determined effort at this side of its business. 

Analyst View 

Matthew McEachran, at Singer Capital Markets, rates the group’s shares as a Buy, with a Price Objective of 31p. 

His estimates for the current year to end-March 2025 are for fairly steady sales at £45.6m (£46.3m), but with a smart turnaround from last year’s loss of £0.3m into a £1m adjusted pre-tax profit. 

That would generate 0.4p (0.2m loss) in earnings per share. 

In My View 

Hopefully, Budget measures permitting, women will continue to spend more money on their attire, and as they do then Sosandar, with its new stores, will stand a very good chance of increasing its sales. 

Better margins will become evident in due course, which should help to bring down the pe ratios. 

At the current 10.75p, I do feel that these shares, which value the company at £26.7m (which has about £8m cash in its balance sheet), are a very interesting play on the recovering retail sector. 

New AIM admission: Pulsar Helium discovers helium in Minnesota

Andrew Hore
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New AIM admission: Pulsar Helium discovers helium in Minnesota

Pulsar Helium Inc shares were already trading on TSX-V and the OTCQB Venture Market and the additional cash raised by coming to AIM will fund further exploration in Minnesota.
The company’s focus is the Topaz helium project in northern Minnesota, close to the Canadian border. So far, an appraisal well has been drilled and this confirmed the presence of helium.
The annual growth rate of the helium market is forecast to be 4.3% with demand from the electronics sector increasing. There is also potential for selling high quality carbon dioxide.
There were 1.47 million shares traded on the first da...

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