ECR Minerals, the exploration and development company focused on gold in Australia, has received the final rock chip sample results from its Hurricane Project in North Queensland.

ECR Minerals shares rose in the immediate reaction on Thursday.

The highlights include grab samples up to 45.7 g/t gold at Hurricane North and 43.2% antimony at Holmes South, equivalent to 83.38 g/t gold grade.

In total, assays were received for 224 rock chip samples collected across the project area. This sampling aimed to test the mineralised vein systems at prospects such as Holmes, Tornado, Cyclone and Hurricane North and South.

Mapping by ECR has confirmed quartz stockwork zones up to 20m wide at the Holmes prospect. The sampling results will help determine the size and extent of these mapped visible outcrops.

“As I have said previously, the Hurricane Project has been a key part of ECR’s strategic planning over the past year. The overall results package is extremely encouraging, and our thanks go to Adam Jones and the field team for an exceptionally comprehensive piece of field work,” said ECR Managing Director Nick Tulloch.

“It is clear that some of the grades and ‘drill ready’ zones indicate that ECR now has a potentially commercial proposition at Hurricane, but these conclusions have to be balanced against any cost of any option purchase agreed at the end of the extended time period, coupled with the capex required to progress the project to the next level. Along with Mike Whitlow, Adam Jones and the field team, we will now spend time assessing these results and how we can maximise the regional potential taking the wider Hodgkinson Province and our potential new Kondaparinga exploration license into account. I look forward to reporting back to you with our proposed course of action.”

Metro Bank shares sank on Thursday after the Financial Times reported the challenger bank was in talks to raise £600m to bolster finances.

The Financial Times reported people with knowledge of the matter said Metro Bank were exploring a £250m equity raise and £350m in debt financing.

Metro Bank shares were down 18% at the time of writing on Thursday and have cratered around 60% over the past month.

The company announced in September they had been in discussions with the PRA about capital planning for their residential mortgage business but the regulator declined Metro Bank’s effort to lower their capital requirements.

Metro Bank has previously been fined for misleading investors about the risk of their mortgage business.

Tekcapital issued an update on portfolio company Belluscura on Thursday and hailed ‘transformative’ developments at the portable oxygen concentrator unit manufacturer.

Belluscura has achieved a step change in orders with a potential $30m demand for DISCOV-R units. An additional licensing agreement with their Chinese partner could be worth $55m over ten years.

Dr Clifford Gross, CEO of Tekcapital, commented on Belluscura’s recent progress:

“We are very pleased to see the significant progress of Belluscura with enhancements to their balance sheet, regulatory approvals, personnel, and sales pipeline. Together we view these recent developments as transformative for Belluscura.”

To facilitate the manufacturing and distribution operations required by the burgeoning demand for their products, Belluscura has undertaken a fund programme which potentially totals in the region of £8m.

The fund packing comprises a conditional equity and convertible loan note issue, and a share-for-share takeover of TMT Acquisition. TMT Acquisition has £4.7m cash on the balance sheet, and the 10% convertible loan note issue will attract around £2.7m. The equity placing was just £600,000.

Belluscura shares are up around 30% since before the funding plans were announced earlier this week. Tekcapital has a circa 11% stake in Belluscura.

The FTSE 100 was treading water on Wednesday as investors weighed economic data and political developments in the United States.

Expectations of higher interest rates for a prolonged period have sent US treasury yields higher, and the sell-off in US bonds is starting to show signs of rippling across financial markets.

At the same time, the removal of Kevin McCarthy as Speaker of the House of Representatives provided suggestions of disruption in Washington making US debt less attractive.

The FTSE 100 was up 1 point to 7,470 shortly after 1pm in London, while US futures looked set for a mildly higher open.

“It feels gloomy right now with a ‘higher rates for longer’ assumption helping to sour sentiment,” said AJ Bell investment director Russ Mould.

“This is reflected in the sell-off in bonds – with US government bond yields hitting levels last seen in 2007, not a year with particularly happy memories for investors.

“The most recent catalysts include the JOLTS job openings survey, which showed a surprisingly buoyant US labour market, and the uncertainty across the Atlantic created by a closely averted government shutdown and the shock ousting of Republican speaker of the House of Representatives Kevin McCarthy.”

There was a slight tick-up in US futures after US ADP jobs data came in worse than expected.

FTSE 100 movers

FTSE 100 constituents were pretty evenly split between gainers and losers on Wednesday, with a noticeable bid in more defensive shares while cyclical shares slipped.

Miners, oil majors, retailers and housebuilders were weaker as investors bought into consumer staples and utility companies.

Tesco was the top riser after first-half sales rose 8.4% to £30.8bn, and underlying operating profit jumped 13.9% to £1.5bn.

“It seems Tesco’s performing its own supermarket sweep, knocking competition out the way in the process and loading up on market share,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.

“As a full-line retailer it maintains an edge over the likes of Lidl and Aldi where you can’t quite find some more obscure ingredients. The enormous investment Tesco’s put in to being more affordable has also helped retain and attract customers while inflation’s been running so hot.”

Tesco shares were 3.9% higher at the time of writing.

After enjoying booming demand for its iconic sandals and broad range of footwear, the German company has filed to list on US markets and is said to seek a $9.2 billion valuation on its initial public offering (IPO) on the New York Stock Exchange.

Birkenstocks announced their plans to list shares in New York in the region of $44–$49 per share, which is expected to raise around $1.6 billion for Birkenstock and their private equity owner, U.S.-based company L Catterton.

L Catterton will have around a 83% stake in the company after the IPO.

Birkenstocks said most of the proceeds will go to repaying its current debt and has no plans to pay a dividend in the near term.

Birkenstock generated €1,242.8 million in revenue in fiscal 2022, up from €727.9 million in 2020.

Birkenstock’s IPO will follow major IPOs by ARM Holdings and Instacart in recent weeks as capital markets fire up after months of next to no activity.

Joint book runners for the IPO include Goldman Sachs, JP Morgan and Morgan Stanley.

The Horizonte Minerals share price is down 85% since last Friday’s close after the nickel miner said on Monday that it had gotten its capital expenditure figures for the 100%-owned Araguaia Nickel Project wrong and was seeking additional financing.

As a result of the miscalculation, the first production of nickel is being pushed back to Q3 2024 from Q1 2024.

The delay in production will be a major disappointment for investors. However, the biggest concern in the short term is how they will finance the rest of the mine construction.

The feasibility study for the Araguaia Nickel Project attributed a capital cost of $443 million for the first stage of the Araguaia mine, with the second stage to be financed by cashflows from first stage production.

Horizonte said on Monday they now expect capital expenditure to be at least 35% more than first thought. This would represent around $155m.

The need for additional capital will be a bitter pill to swallow for investors who were told earlier this year that Araguaia was on schedule and on budget.

The company has previously financed the mine through debt and newly issued equity, with the lion’s share raised through a senior debt facility.

The worry for investors will be that Horizonte said they are exploring financing options with ‘various financial institutions together with the cornerstone shareholders’. Cornerstone shareholders’ involvement would suggest Horizonte is considering an equity placing that could be highly dilutive for existing shareholders.

With Horizonte’s market now at just £44m, an equity placing could be problematic. The company didn’t issue any further details on financing options, which has added to the uncertainty and can be attributed to a proportion of the share price decline. One would assume they are looking at both debt and equity options.

There is of course value in the works already completed and the resources at Araguaia but how much of this value finds its way to Horizonte shareholders is now nothing more than speculation with little detail on future financing.

This is reflected in the Horizonte Minerals share price and it will require a brave investor to take the view the sell-off is overdone.

Superdry plc has signed an intellectual property joint venture agreement with Reliance Brands Holding UK to accelerate growth in India.

The company has also agreed to sell the intellectual property assets for the Superdry brand and related trademarks in India, Sri Lanka and Bangladesh to the new joint venture for £40m.

Superdry shares surged 30% on the news in early trade on Wednesday.

The deal represents a value not too different to Superdry’s market cap as of the close yesterday and will have a material impact on the company’s cash position.

RBUK, which is owned by Reliance Retail Ventures Limited through its subsidiary Reliance Brands Limited (RBL), will hold a 76% stake in the joint venture. Superdry will retain a 24% share. RBL has been Superdry’s exclusive franchise partner in India since 2012.

After the deal, RBL will continue managing brand operations in the three countries.

RBL oversees a retail empire of over 18,000 stores across India. It offers 50 luxury fashion brands and has a presence in 7,000 towns and cities. The total shopping area covers more than 65 million square feet.

Since partnering with RBL in 2012, Superdry has expanded rapidly across India. With the country’s growing economy and rising middle class, the brand has significant potential. As India’s leading fashion retailer, RBUK is best placed to maximise this opportunity through majority IP ownership.

The deal involves permanently transferring all of Superdry’s brand assets in the three countries to the new joint venture entity. Superdry will invest £9.6 million in the JV using funds from the £40 million IP sale price.