Tekcapital announced updates for two of its portfolio companies on Wednesday: Innovative Eyewear is improving its point-of-sale experience for customers, and Guident is to integrate extended reality (XR) technology to create an immersive autonomous vehicle safety solution.

Guident is proving that its autonomous vehicle safety technology knows no bounds in terms of innovation. The company has teamed up with XRF, an augmented and virtual reality specialist, to enhance Guident’s fleet management capabilities as it rolls out solutions across the US.

Augmented, Virtual, and Mixed Reality will be integrated into Guident’s Remote Monitoring and Control Centres (RMCC) to enhance the visualisation of autonomous vehicles and their environments.

In addition to Guident, XRF has partnered with the Spanish Army and is involved in Saudi Arabia’s exciting NEOM Line project.

“Our partnership with Guident allows us to introduce an innovative solution for real-time managing of autonomous robots and AV fleets,” said XRF’s CEO Gustavo Medina.

“By integrating XRF software with Guident’s RMCC, fleet operators can monitor and respond to situations more effectively. The interactive training mode offers an exciting way to develop skills and prepare for multiple scenarios. We’re eager to bring this combined solution to market.”

Innovative Eyewear

As Innovative Eyewear steps up the distribution of Eddie Bauer and Nautica-branded smart eyewear, Innovative Eyewear is improving customers’ point-of-sale experience through a partnership with Geenee to use state-of-the-art virtual try-on (VTO) technology.

A partnership announced today will see the introduction of VTO interactive display boards in retailers, allowing virtual engagement with products. Customers will be able to try on Lucyd’s ranges virtually in-store, as well as on the Lucyd website.

Although Innovative Eyewear earned most of its revenue from e-commerce channels in the first half of 2024, the company has said its growth will be driven by retail outlets. Today’s announcement reaffirms this strategy. 

“We are excited to partner with Geenee as they will provide a terrific and fun solution to help guide our customers in their smart eyewear purchases,” said Harrison Gross, CEO of Innovative Eyewear.

“We believe that their fast and flawless VTO experience will enhance sell-through both online and in-store.”

The global markets will have a strong interest in just what is discussed and decided at the Jackson Hole Symposium on Friday of this week. 

Will it see Jerome Powell, the Chairman of the Federal Reserve, bring about the lowering of US interest rates after he pontificates about the US economy. 

Jackson Hole 

The Federal Reserve Bank of Kansas City’s Economic Policy Symposium in Jackson Hole, Wyoming, is one of the longest-standing central banking conferences in the world.  

The event brings together officials from the Federal Reserve, the Bank of England and the European Central Bank, together with economists, financial market participants, academics, US government representatives, and news media to discuss long-term policy issues of mutual concern.  

Interest Rates To Lower 

The betting is favouring the first of a couple of near-term interest rate falls, as early as Wednesday 18^th September. 

Which in turn could help the Governor of the Bank of England and his crew to drop our rates too. 

In Times Of Uncertainty 

Global markets of late have been somewhat jittery, especially two Monday’s ago after Japan fell out of bed. 

However, certain levels of normality have been returning to our UK equity market, and that is despite the uncertainty caused by the unemployment figures together with other worrying economic and political factors. 

In turn they have helped global players start to push the price of Gold through to new Highs. 

Jackson Hole, fresh buying from India and China, together with the imminent run-up to the US Presidential Election could all combine to inspire increased trading in the precious yellow metal. 

The Ultimate Liquidity? 

Three factors set gold apart as an investment from most other commodities: it is indestructible; it is fungible; and the inventory of above-ground stocks is enormous relative to the supply flow. 

Because of gold’s liquidity, it often acts more like a currency than a commodity.  

Some Gold Facts 

Around 187,200 tonnes of gold have been mined since the beginning of civilisation. 

Over 90% of the world’s gold has been mined since the California Gold Rush. 

If all of the existing gold in the world was pulled into a 5-micron thick wire, it could wrap around the world 11.2 million times. 

One ounce of gold can be stretched to a length of 50 miles; the resulting wire would be just five microns wide. 

One ounce of pure gold can be hammered into a single sheet nine metres square. 

It is rarer to find a one-ounce nugget of gold than a five-carat diamond. 

There are just over 31 grams in a troy ounce of gold. 

The temperature of the human body is 37 degrees centigrade. Gold’s conductivity of heat means that it rapidly reaches body temperature – one of the reasons it has become valued for jewellery. 

Gold melts at 1064 degrees centigrade. 

The boiling point of gold is 2808 degrees centigrade. 

Gold is often alloyed with other metals to change its colour and strength. Eighteen karat gold is composed of 750 parts of pure gold per 1,000. 

At today’s rate one tonne of gold is worth $83m. 

A “London Good Delivery Bar”, the standard unit of traded gold, is made from 400 troy ounces of gold. 

The US Federal Reserve holds 6,700 tonnes of gold, in 530,000 gold bars. At its peak in 1973, the Fed stored more than 12,000 tonnes of monetary gold. 

There are 147.3 million ounces – around 4,600 tonnes – of gold stored in the US Bullion Depository at Fort Knox. 

Even at only 10 parts of gold per quadrillion, the world’s oceans are estimated to hold up to 15,000 tonnes of gold. 

Just think – one gold bar of 400 ounces is today worth over $1m. 

Around half of all gold mined today is made into jewellery, which remains the single largest use for gold. 

In My View 

Now at over $2,540 an ounce, observers suggest a gradual push to test the $2,600, $2,800, and then the $3,000 levels could be an early possibility. 

For what it is worth, I see the price of Gold rising through the $2,600 level very soon, as it starts to creep even higher before the year-end. 

UK Oil & Gas PLC has announced plans for a second underground salt-cavern hydrogen storage facility in south Dorset through its subsidiary UK Energy Storage.

The project aims to provide between 6.5 and 10 Terawatt-hours of working storage annually, which could meet 10-20% of the UK’s projected hydrogen storage needs by 2050.

The company has secured a 60-year lease for land and subsurface mineral rights in an area with the thickest onshore Triassic salt deposit in Dorset. The location’s proximity to planned hydrogen infrastructure, including SGN’s H2 Connect pipeline, positions it as a key component of the emerging southern UK hydrogen super-cluster.

UK Energy Storage will now move forward with finalising the lease agreement, completing design studies, and preparing to submit a Nationally Significant Infrastructure Project planning application.

The company also intends to apply for government Revenue Support for at least one of its Dorset sites, underlining the strategic importance of these facilities in the UK’s future energy landscape.

“UKEn’s new Dorset site is optimally placed to exploit the thickest part of the onshore Dorset Triassic salt deposit, permitting large underground caverns to be emplaced via a modest sized surface facility,” said Stephen Sanderson, UK & Oil and Gas Chief Executive.

“Its proximity to SGN’s H2 Connect pipeline is deliberate and will ensure storage can be directly linked to the planned Solent Cluster and wider Southern UK hydrogen networks.

“We look forward to continued collaboration with government to develop these strategic UK energy infrastructure assets and to help make the 2030 UK power decarbonisation target a reality.”

The FTSE 100 undid all of the prior session’s gains on Tuesday as lower oil prices dragged on BP and Shell, and investors trimmed positions ahead of interest rate-sensitive events later this week.

BT did nothing to support sentiment as it sank on news that Sky, one of its biggest customers, was choosing one of BT’s rivals for future fibre broadband expansion.

“The FTSE 100 started off Tuesday on the back foot despite gains in the US and Asia overnight as its heavy weighting towards oil stocks proved a headwind,” said AJ Bell’s head of financial analysis Danni Hewson.

“Hopes of a ceasefire in Gaza and continuing concerns about Chinese demand combined to drive oil prices to their lowest levels since the beginning of August and that put index heavyweights BP and Shell under pressure.

“While oil did dip below $76 around the beginning of August it has consistently traded above $80 per barrel for much of this year. If oil prices remain at these levels it could help reduce inflationary pressures and give central banks more room to make interest rate cuts.”

Lower energy prices will undoubtedly be helpful for the medium-term health of equities. However, the composition of the FTSE 100 and its weighting towards commodities meant the index was down 0.6% at the time of writing on Tuesday, underperforming the German DAX and French CAC.

BT

BT was the biggest faller on reports Sky is partnering with one of BT’s rivals to expand its fibre broadband reach.

“BT shares opened lower on rumours that Sky may be partnering with CityFibre starting next year,” said Hargreaves Lansdown’s Matt Britzman.

“The BT impact is through its Openreach business, which has Sky as its biggest external partner. There are genuine concerns about its reliance on a single customer, but a deal with CityFibre is unlikely to have a major impact on the current relationship.”

The deal between Sky and CityFibre is a real kick in the teeth for investors who are desperate for BT to produce meaningful growth. One of its largest customers choosing a rival when BT would have hoped to meet this demand in the future has not been taken well, and shares are down 6%.

Rome Resources has announced it encountered tin mineralisation at its Kalayi prospect in North Kivu, Democratic Republic of Congo, drill campaign in its first material update to investors as a London-listed entity.

After recently coming to London through a Reverse Takeover, Rome Resources has kicked off a 2,700m drilling campaign to further explore the Bisie North Projects at Kalayi. Early results should encourage investors.

Drillhole KBDD005 reached a depth of 164.5m, intersecting a mineralised zone approximately 60m below a previous high-grade discovery. This earlier hole, KBDD003 from Rome’s 2023 campaign, had yielded impressive results: 12.5m at 1.03% tin, including segments of 1m at 2.78% and 1m at 7.12%.

“We are delighted to see visible tin mineralisation in several intervals in the first hole of this drilling campaign and look forward to reporting assays as soon as they become available,” said Paul Barrett, Chief Executive Officer of Rome Resources.

“We are also pleased to be mobilising additional drilling units to site to maintain an aggressive drilling campaign over the coming weeks and months.”

Antofagasta shares rose on Tuesday after the mining giant announced rising revenue and EBITDA during the first half of 2024.

It’s a copper pure play targeting between 670k and 710k tonnes of production for 2024, making it one of the world’s foremost producers. A mining company with the scale of Antofagasta has inevitably encountered other minerals in its search for copper and produces gold and molybdenum, but these are a sideshow to copper production.

In the first half of 2024, Antofagasta generated $2,955m in revenue, an increase of $2,890m in the same period a year ago. 

Stronger copper prices, on average 10% better than the comparable period last year, drove higher revenue. However, lower production offset the increase by 4%.

“Antofagasta has reported a five percent increase in half-year profits this morning as higher copper prices drove performance in the first half of the year,” said Mark Crouch, Market Analyst at investment platform eToro.

“However, after reaching a record high in May, the price of copper has since retraced nearly 20 percent. Not surprisingly, Antofagasta’s share price has moved in near identical fashion.”

The key to future profit appreciation will be dictated by the wider macro picture, most notably how well China can navigate shifting undercurrents in its economy.

“Antofagasta shareholders might be asking themselves: is the bull run in copper over or is this just the end of the beginning?” Crouch questions.

“A leading economic indicator, Dr Copper, as the industrial metal is often referred to, could be diagnosing a period of queasiness ahead for markets following copper’s recent sell off. In June, the world’s largest consumer of the industrial metal, China, reported copper stockpiles at a four-year high.

“However, with cooling inflation giving way to Central Banks around the world cutting interest rates, a bump in economic activity could likely follow, at which point demand for copper is sure to ramp up again.” 

Antofagasta will pay a 7.9 cent dividend for the half-year period. 

i3 Energy looks set to be one of the latest companies to leave London’s markets after agreeing on a takeover deal with Gran Tierra Energy Inc.

Gran Tierra Energy has agreed to acquire i3 Energy plc in a cash and share offer valued at approximately £174.1 million ($225.4 million). The deal will see i3 Energy shareholders receive one new Gran Tierra share for every 207 i3 Energy shares held, plus 10.43p cash per share.

i3 Energy shareholders will also receive a cash dividend of 0.256p per share. This acquisition dividend replaces the ordinary dividend for the quarter ending September 30, 2024. Upon completion, i3 Energy shareholders will own up to 16.5% of Gran Tierra.

The offer represents a fairly healthy premium for i3 Energy shareholders based on very recent prices, but the price is still a long way below where the stock has been in recent years. Based on Gran Tierra’s closing price on August 16, 2024, the deal values i3 Energy at 13.92p per share – a 49% premium to its closing price on the same date.

i3 Energy shares were trading as high as 32p in 2022. The deal is clearly another example of overseas players seeing greater value in the operations of London-listed companies than the valuation the UK’s equity investors are willing or able to give them. Unfortunately, i3 Energy will not be the last UK-listed company to be taken over at knockdown prices while London’s market struggles to value quality companies properly.

To provide flexibility for shareholder in this deal, a Mix and Match Facility will allow shareholders to adjust the proportion of cash and shares they receive, subject to offsetting elections and certain limitations.

Gran Tierra’s strategic move aims to diversify its portfolio and create a larger, more diversified energy company in the Americas. i3 Energy’s Canadian assets are expected to contribute 18,000 to 19,000 barrels of oil equivalent per day (BOEPD) in 2024, complementing Gran Tierra’s guidance of 32,000 to 35,000 barrels of oil per day.