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.

Tekcapital has announced the addition of two AI scientists with experience at Google and Apple to their advisory board as they plan to make investments in Generative AI early-stage companies.

Details were released in Tekcapital’s half-year report which reflected broad progress in their current portfolio companies.

With two of their portfolio companies already listed and another looking set to list this year, Tekcapital has provided exciting insight into their plans for the future.

Tekcapital has brought in AI experts Dr. Russ Salakhutdinov, the former director of AI at Apple, and Alexander Mordvintsev who is currently a Senior research scientist at Google.

These are notable additions and demonstrate a clear intent to invest in the fast-moving Generative AI industry which is attracting the attention of a broad range of businesses – and significant flows of capital.

Cannabis-based ingredients and medicines developer Celadon Pharmaceuticals (LON: CEL) says that it will start supplying its two major customers before the end of the year. It also hopes to sign up a partner to finance the trial of a cannabis-based alternative to opiates.

Earlier, this year AIM-quoted Celadon Pharmaceuticals extended the Home Office licence to enable commercial supply of the active cannabis-based pharmaceutical ingredients it manufactures. Two multi-year contracts worth £3m and £1.2m respectively were won on the back of this approval.

Commercial cultivation has started. The current facility in the Midlands has an annual capacity of around 150kg. Gross margin is estimated to be at least 70%. The two existing contracts could generate £1m of gross profit in a full year, which is not enough to cover overheads.

The LVL pain relief trial will cover up to 5,000 patients and could take up to three years, although it should not be that long. Canaccord Genuity expects the trial to last 12-18 months from its launch, which could be in the first half of next year.

The interim cash out flow from operating activities was £3m. Cash was £1.6m at the end of June 2023 and there is also a £7m credit facility, which Celadon Pharmaceuticals is likely to dip into by the end of the year. The facility is provided by a shareholder and the interest rate is 10% of the amount drawn down.

A partner would finance the pain relief trial and there will be a profit contribution from the initial supply agreements. That does not mean that the cash outflow will be stopped in the medium-term.

Further investment in the company’s facility is required, although the pace of investment will depend on new contracts being won. If the order book builds up there could be a requirement for a fundraising to finance the growth.

The share price slipped 10p to 120p following the interim results. Positive news concerning supply deals and a partner for the pain relief trial should help the share price to recover.

The FTSE 100 fell on Thursday with higher oil prices raising the question of whether we had seen the back of increasing inflation rates.

Brent oil was trading comfortably above $95 on Thursday and the FTSE 100 broke beneath 7,600 to trade at 7,568.

Oil prices have steadily marched higher since Saudi Arabia announced another production cut and Russia banned exports of high-quality fuels.

“Another leg up in oil prices has added to the market worries about sticky inflation, thereby stoking fears that interest rates will stay higher for longer. Brent Crude moved higher to settle around the $95 per barrel mark and WTI was close behind after new data showed a further decline in US stockpiles,” said Russ Mould, investment director at AJ Bell.

“The market is worried that supplies of oil are going to be tight and if prices keep going, it is going to cause a real headache for businesses and consumers.”

Adding to the downward pressure on the FTSE 100, a number of constituents traded ex-dividend on Thursday and these companies dominated the top fallers.

Pheonix Group lost 6% of its value after paying a bumper 26p dividend worth around 5% in shareholder return. Barratt Developments also paid a sizeable dividend leading to a near 6% drop in shares.

Ocado couldn’t find a bid on Thursday and the food distribution and technology company traded at the lowest levels since July. Hopes of a bid from Amazon seem to fading.

Miners were among the top risers as traders stepped in to pick up the beaten-down sector on Thursday.

Rising bond yields

US bond yields rose again reflecting concerns about higher interest rates for a longer period, especially in the US.

This fear has also been evident in US stocks which looked set for another weaker session on Thursday.

Vast Resources shares were dramatically higher on Thursday after the company said operations at their Baita Plai Polymetallic Mine in Romania resumed normal service.

Workers had gone on strike earlier in September after the miner said workers had gone on strike after a salary was missed due to the delay in payment for a concentrate shipment.

Vast Resources sold 316 DMT of copper concentrate in Q2.

Vast Resources shares were 29% higher at the time of writing.