Horizonte Minerals announced today that construction delays and design changes will increase costs and push back the first production at its Araguaia nickel project in Brazil to Q3 2024. Capital expenditure is expected to increase by 35% as a result.

Horizonte Minerals shares sank over 50% on the news released on Monday.

Despite the challenges, Horizonte said engineering and early construction work continue to progress. Ore stockpiling began last quarter, and key equipment like the rotary dryer is in place. The transmission line and water infrastructure are also advancing.

However, final engineering identified the need for additional civil works and higher material quantities. Some suppliers also cannot deliver on the original timeframe, adding cost pressures.

An independent review found the changes will require more capital expenditure and a longer schedule to the first metal production. Horizonte expects to provide details on the review and updated operating costs in Q4 2023.

The company still plans to publish a feasibility study on a potential second production line at Araguaia in Q4. The two lines combined could produce 29,000 tonnes of nickel per year.

Tekcapital shares surged on Monday after their portfolio company MicroSalt announced a retail offer on PrimaryBid in relation to their AIM IPO.

Tekcapital shares traded as high as 13.84p in very early trade on Monday – well over 10% higher on the day.

MicroSalt’s retail offer will close 6th October and is accessible via the PrimaryBid website and a network of retail brokers including Hargreaves Lansdown and AJ Bell. The minimum subscription is just £500.

The low-sodium food technology company is seeking to raise £12m-£15m in the wider IPO placing with the majority of funds to be allocated to CAPEX, working capital and sales & marketing.

MicroSalt have developed a salt with 50% less sodium than normal table salt and aims to help people reduce their overall sodium intake. Each year, millions of people die globally from cardiovascular diseases related to the overconsumption of sodium.

The release of MicroSalt’s Pathfinder Admission document was the first opportunity for investors to gain an insight into MicroSalt’s revenue and sales.

MicroSalt’s revenue rocketed to $638,000 in the year ended December 2022 and the raft of recent commercial partnerships announced since year-end would suggest revenue rises again substantially in 2023.

MicroSalt has brought in Rick Stein’s son Jack Stein as a brand ambassador, and former Sainsbury executive Judith Batchelar OBE has joined MicroSalt as a non-executive director.

Oxford BioDynamics (LON: OBD) says the PSE prostate cancer test has completed validation in US CLIA laboratories earlier than expected. The test is available in the US and the UK, which will initially send the test to be processed in the US while accreditation is obtained in the UK. This adds to the company’s range of tests. The share price jumped 253% to 37p.

Vast Resources (LON: VAST) says a protest at its Baita Plai polymetallic mine in Romania has ended. It states the impact on production was minimal. The company will make an outstanding salary payment when a customer payment is cleared. The share price recovered 36.8% to 0.26p.

A positive AGM trading statement from Supreme (LON: SUP) has pushed up the share price of the consumer products supplier by 27.8% to 124p. The figures for the year to March 2024 are set to be significantly ahead of expectations. EBITDA guidance is raised by £3.5m to £28m-£30m. The cash position should also be stronger.

The Tertiary Minerals (LON: TYM) joint venture with Mwashia Resources covering the Konkola West project in Zambia has signed a non-binding term sheet with a mining company. The mining company will be able to earn a 51% interest in the licence by funding an initial drilling programme. This could be increased to up to 70% through spending of $6m on further exploration. Tertiary Minerals could end up with 30% of the project. The share price rose 25% to 0.1375p.

FALLERS

Cameroon-focused oil and gas company Bowleven (LON: BLVN) is still awaiting completion of the sale of a 37.5% interest in the Etinde project by New Age. Regulatory approval is required, and it is uncertain if the deal will go ahead and this means greater uncertainty for Bowleven, which has an interest in the project. Bowleven has $1.25m in cash and will need to raise more by the first quarter of 2024. The share price slid 57.5% to 0.765p, because of concerns about a heavily dilutive fundraising.

In-game advertising platform Bidstack (LON: BIDS) have licenced technology to a new company called VST, so that it can raise cash for its funding requirements. Bidstack chief executive James Draper and executive director Lisa Hau have set up VST, which is paying Bidstack a licence fee of £1.5m for the provision of technology for worldwide use for sports leagues and teams in virtual stadiums. Camila Franklin has stepped down from the Bidstack board after 12 months. Bidstack had £2.08m in cash at the end of June 2023. Revenues will fall short of expectations this year. The share price slumped 57% to 0.29p.

Shares in shell company Itsarm (LON: ITS) declined 53% to 0.775p prior to the suspension of trading on Friday. It has failed to find an acquisition, but there are two consumer-related possibilities.  

UniVision Engineering (LON: UVEL) says results for the year to March 2023 will be delayed so trading in the shares will be suspended on 2 October. The CCTV company has winding-up petitions against it. The share price halved to 0.15p.  

Severn Trent has completed a £1 billion equity placing to fund record investment levels as part of its transformational business strategy for 2025-2030.

The placing and transformation plan was well received by markets and Severn Trent shares were 7% higher at the time of writing on Friday.

The water company plans to invest £12.9 billion over the next regulatory period, including £5 billion on projects to enhance capacity and service. This represents a 31% increase in its regulatory capital value (RCV) and will create around 7,000 jobs.

The ambitious programme aims to reduce leakage by 16%, cut storm overflow spills by 30% and drive a 30% reduction in pollution. Severn Trent says it will eliminate 240,000 tonnes of carbon emissions, delivering net zero operations by 2030.

The company states the plan balances large investments with affordability. The average annual household bill will rise to £518 by 2029/30, up around £2.32 per month over five years. Severn Trent has set aside £550 million to support 693,000 struggling customers.

Liv Garfield, CEO at Severn Trent, commented on the investment plan: 

“By 2030 we will have transformed our network to provide our customers with the very best service. At the heart of this ambition is a commitment to a sustainable future – from healthier rivers, to providing thousands of jobs, fewer leaks and a water supply ready for the impacts of climate change and population growth. At the same time, our £550 million affordability scheme aims to ensure no customer in our region needs to worry about affording their water bill.”

Placing

Severn Trent has £1 billion to fund their transformation with £500m committed by the Qatar Investment Authority. For the share price to rise after the placing is major endorsement by investors.

It’s not often the FTSE 100 is lifted by positive UK economic data due to its weighting to overseas companies. However, Friday was one such session after UK GDP growth since the beginning of the pandemic was revised higher.

The ONS said the UK economy has grown 1.8% since the beginning of the pandemic, a sharp revision higher from than previously estimated 0.2% contraction.

The upbeat data helped propel the FTSE 100 0.6% higher with UK-facing stocks in the driving seat.

“While the UK economy bounced back from the pandemic at a faster rate than previously expected, it is important to remember these figures are backwards looking. The market is more interested about what might happen next,” said Russ Mould, investment director at AJ Bell.

“The economy is expected to be sluggish going into 2024, particularly if inflation remains sticky and interest rates stay higher for longer. However, markets have been worried about a recession so positive revisions to GDP estimates, even small ones, give hope that we could avoid the economy going into a big downturn.

“This shift in sentiment provided support to UK stocks, with retailers, engineers and housebuilders among the sectors in demand. The key question is how long this positive momentum can last.”

The momentum Mould alludes to certainly progressed into the afternoon session on Friday with JD Sports, Ocado, Barratt Developments among the top risers.

JD Sports was also helped higher by solid results from Nike overnight.

Severn Trent was the FTSE 100’s top gainer after announcing a massive £1 billion placing to help fund their ‘transformational’ business plan. Severn Trent plans to invest £12.9 billion over five years to bolster their infrastructure.

“By 2030 we will have transformed our network to provide our customers with the very best service. At the heart of this ambition is a commitment to a sustainable future – from healthier rivers, to providing thousands of jobs, fewer leaks and a water supply ready for the impacts of climate change and population growth,” said Chief Executive Liv Garfield.

Zanaga Iron Ore Company (LON: ZIOC) says that the Chinese EPC partner for the Zanaga Iron Ore project believes that there could be operating cost savings of one-quarter. The phase 1 feasibility study should be complete by the end of the year. A partner for the project could be selected in the first half of next year. The share price improved 15.3% to 5.24p.

MS International (LON: MSI) has won a contract with the US Navy through its US-based subsidiary. The $23.5m contract is for the supply of Mk38 MOD4 gun mounts, which will be delivered by the end of 2024. This follows another longer-term US Navy contract announced at the beginning of September. The share price increased 9% to 730p.

Personal Group Holdings (LON: PGH) increased interim revenues by one-third as insurance business recovered. Net cash is £22.6m at the end of June 2023. The employee benefits operations have added 52 clients as companies try to retain and attract employees.  The share price is 6.94% higher at 185p.

Gold, copper and lithium explorer Artemis Resources (LON: ARV) reported annual results and an updated mineral resource estimate for Carlow Castle, where the inferred resource is 8.74Mt containing 704 ounces of gold equivalent. Indications of sulphide mineralisation have been detected. Lithium pegmatite discoveries have been made in the Greater Carlow project area. Artemis Resources is seeking a partner for the Patterson Central gold prospect. WH Ireland believes fair value is 8p/share. The share price rose 5.36% to 1.475p.

FALLERS

In-game advertising platform Bidstack (LON: BIDS) have licenced technology to a new company called VST, so that it can raise cash for its funding requirements. Bidstack chief executive James Draper and executive director Lisa Hau have set up VST, which is paying Bidstack a licence fee of £1.5m for the provision of technology for worldwide use for sports leagues and teams in virtual stadiums. Camila Franklin has stepped down from the Bidstack board after 12 months. Bidstack had £2.08m in cash at the end of June 2023. Revenues will fall short of expectations this year. The share price slumped 48% to 0.325p.

MobilityOne (LON: MBO) improved interim revenues by 7% to £121.5m, but profit declined to just above breakeven. MobilityOne is acquiring 49% of Sincere Acres, a healthcare systems provider, for £5.22m. The share price is one-fifth lower at 5p.

Zephyr Energy (LON: ZPHR) reported lower interim revenues because of reduced oil prices and declining production from Williston. Group production is expected to increase in the second half when non-operated interests commence production. The value of the core oil and gas assets has risen by one-third to $103.2m. Discussions continue with insurers over the drilling problems at the Paradox project. The share price is down 19.7% to 2.65p.

Verici Dx (LON: VRCI) has generated its first revenues in the first half of 2023, but they were a modest $19,000 for the developer of clinical diagnostics for organ transport. However, full year revenues will be lower than expected. Cash was reduced from $9.8m to $5.3m over the six months to June 2023. The share price fell 18.1% to 7.375p.