AIM movers: Pressure Technologies contract and IOG admits Southwark well uncommercial

Andrew Hore
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AIM movers: Pressure Technologies contract and IOG admits Southwark well uncommercial

Pressure Technologies (LON: PRES) has gained a £18.2m contract to supply air pressure vessels for the Royal Navy’s third and fourth Dreadnought-class nuclear submarines. They will be delivered over the next three years. This is as expected, but it provides additional confidence in forecasts and the anticipated return to profit. Steve Hammell has been appointed finance director. Full year results are expected on 28 February. The share price jumped by 16.9% to 45p.

hVIVO (LON: HVO) has won a second human challenge study contract in Asia to test an RSV antiviral drug candidate. The study will start in the first half of 2024 and will be worth £6.8m. The 2023 order book already underpins most of the revenues forecast for this year and this contract helps to underpin the 2024 figure. The share price moved up by 14% to 19.1p.

Iodine producer Iofina (LON: IOF) had a strong end to 2022, although less than 450 tons of iodine was produced compared with production of 516 tons. A high iodine price and lower than expected costs helped profit to be higher than expected. Canaccord Genuity has increased its 2022 earnings forecast from 2.5 cents a share to 3.4 cents a share. Net debt is down to $1m. IO#9 will start production in 2023.The share price is 12% ahead at 27.45p.

ImmuPharma (LON: IMM) has agreed with it partner Avion Pharmaceuticals that there should be a phase 2/3 adaptive trial for Lupuzor in systemic lupus erythematosus patients. This should start in the second half of 2023 if FDA approval is achieved. The share price improved by 6.67% to 2.8p.

In the fourth quarter, Hummingbird Resources (LON: HUM) achieved the highest level of production at the Yanfolia gold mine since the first quarter of 2020. This was around 28,000 ounces of gold thanks to the mining of higher grade areas. Production was around 51,000 ounces in the previous nine months. Yanfolia is generating cash to complete the construction of the Kouroussa project. Production would need to remain at this level to provide the additional cash required. The share price rose 8.55% to 8.25p.

IOG (LON: IOG) admits that the Southwark A2 well in the southern North Sea was not commercial because of a disappointing gas flow rate and the share price is down 38.1% to 4.95p. A second well may be delayed. The 2023 capital investment programme for all the group’s projects is being reassessed. A €100m Nordic bond matures in September 2023 and this will need to be refinanced.

Julian Baines has returned to an executive role at EKF Diagnostics (LON: EKF) on an interim basis and chief executive Mike Salter will step down from the board and concentrate on the fermentation capacity expansion in Indiana. The cost of the project has risen from $9.7m to $14.2m. The 2022 profit is lower than expected and net cash of £11.4m, including £2.4m in Russia, is below expectations. Singer forecasts 2022 pre-tax profit of £10.9m, down from a Covid boosted £23.5m in 2021, and a small fall is expected in 2023. A new chief executive will be recruited. The share price is 18% lower at 32.2p.

Oracle Power (LON: ORCP) has signed a memorandum of understanding with Emirates Global Alumnium for the potential supply of 50,000 tonnes of green hydrogen from its project in south east Pakistan. This is the majority of the 55,000 tonnes projected annual output. A deal could be signed during COP28 in the UAE at the end of 2023. A placing raised £500,000 at 0.17p a share to provide finance for the project. The share price dropped 19.2% to 0.19p.

Virtual reality technology developer ENGAGE XR (LON: EXR) is raising up to £8.8m at 4p a share. HTC has confirmed that it will subscribe an additional £580,000. The share price slipped by 14.6% to 4.25p. Net cash was €2.2m at the end of 2022, while cash burn is estimated at €400,000/month in the first ix months of 2023. Around 30% of the proceeds will be used to boost sales and marketing and the rest provides working capital. Management believes that this should be enough to reach breakeven.

Bradda Head Lithium (LON: BHL) has intersected 31.85 metres at 1.6% Li2O, including 3.21 metres at 3.74%, at the San Domingo lithium pegmatite district in Arizona. Lithium bearing minerals have been observed in three-quarters of the 36 holes drilled, so far. A follow up drilling campaign is being designed. The share price fell 6.21% to 6.8p.

Empire Metals share price jumps on positive Pitfield findings

UK Investor Magazine
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Empire Metals share price jumps on positive Pitfield findings

Empire Metals shares were higher after the company said a recent survey suggests their Pitfield asset could hold copper deposits across a 40km long alteration footprint.

Empire Metals shares were 8% higher at the time of writing on Monday.

Dipole Induced Polarisation surveys found areas with strong copper anomalism in both soils and rocks. The study identified possible copper encounters at least 1,500m in length and up to 800m wide in close vicinity to Mt Scratch.

The Pitfield asset is located in Australia, 313km from Perth. The Pitfield update this morning adds to encouraging rock sampling results released last week.

“I am delighted to provide an update on our initial DD-IP survey activities, a reconnaissance mission focussing on areas that were previously under-explored by the major mining companies that have worked the area.  These highly encouraging results from the DD-IP surveys suggest the presence of large, disseminated sulphide mineralised zones, thus providing multiple drill targets and providing another leap forward in our plans to commence drilling activities at Pitfield,” said Shaun Bunn, Managing Director.

“Our immediate focus will be on drilling at the Mt Scratch Prospect, where we have identified a massive highly chargeable anomaly. It is important to note that the Mt Scratch Prospect on its own only represents 5% of the overall project area. The coincidence of multiple highly chargeable anomalies, extensive magnetite alteration and elevated copper in soils and rocks, extending over much of the 40km long N-S massive alteration zone, supports our view that Pitfield has the geological hallmarks of a “Giant” copper mineralised system and we intend to continue our soil sampling and DD-IP surveying activities over the coming months to identify additional drill targets.” 

Plant Health Care: product growth leaves group on track for $30m revenues by 2025

Mark Watson-Mitchell
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Plant Health Care: product growth leaves group on track for $30m revenues by 2025

The latest Trading Update from Plant Health Care (LON:PHC) demonstrates that the year to end December 2022 was one of significant product development and offering global sales prospects.

Capitalised at some £36m, the group is a leading provider of peptides for plant protection to agriculture markets across the world.

The Business

Plant Health Care offers products to improve the health, vigour and yield of major field crops such as corn, soybeans, potatoes, and rice, as well as specialty crops such as fruits and vegetables. 

The group operates globally through subsidiaries, distributors and supply agreements with major industry partners. 

Its innovative, patent-protected biological products help growers to protect their crops from stress and diseases, and to produce higher quality fruit and vegetables, with a favourable environmental profile.

The Last Year

The last year saw a 40% increase in group revenues to $11.8m ($8.4m), with sales in North America up 74% driven by strong demand for its Harpin ab product, while the Saori launch saw sales up 104% in South America.

The group, which already markets its products in Argentina, Brazil, Chile, Greece, Mexico, Morocco, the Netherlands, Portugal, South Africa, Spain, Turkey and the UK, is expanding its markets into France, Uruguay and India.

CEO Jeff Tweedy stated that:

“2022 was excellent despite the challenging macroeconomic conditions. Our success was driven by the growing demand for Harpin in North and South America and the successful commercialisation of Saori in Brazil following its launch in 2021.

Plant Health Care is on track to achieve revenue of $30 million by 2025 through the launch of new peptides, and growth through current and future distributor relationships and deliver cash breakeven within our existing cash reserves.”

Analyst Opinion – forecasting a major uplift

John-Marc Bunce, analyst at the group’s NOMAD and Broker Cenkos Securities, has re-iterated his Buy rating on its shares, suggesting a 33p Target Price.

His estimates for the year to end December 2022 suggest revenues of $11.4m ($8.4m) with the annual loss significantly reduced to a third lower at $3.0m ($4.6m).

Looking at his figures for the current year he sees $15.9m sales, leading to just a small loss of $0.3m.

However, for 2024 he forecasts a major uplift in the group’s fortunes – $24.8m sales, a $5.2m profit, worth 1.6c per share in earnings.

Conclusion – impressive growth potential offers big upside

This group really is developing impressively.

It has now created a substantial platform for its strong growth.

The next year is expected to see growth from its Harpin and Saori products, while preparing PHC949 for its launch in 2024.

This group’s shares at the current 11.62p offer investors some significant upside.

Aquis weekly movers: S-Venture directors share buying

Andrew Hore
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Aquis weekly movers: S-Venture directors share buying

Three directors bought shares in S-Ventures (LON: SVEN). Scott Livingston acquired 104,539 shares at 11.1p each, taking his stake to 36.7%. Robert Hewitt bought 44,247 shares at 11.3p each and Alexander Phillips acquired 89,954 shares at 11.1p each. Exercised warrants at 25p each raised £350,000. The share price rose 35% to 15.05p.

A company owned by NFT Investments (LON: NFT) executive chairman Jonathan Bixby bought 10 million shares at 0.855p each, taking his stake to 6.43%. NFT investments has secured a temporary restraining order in Delaware that freezes the online warrant holding assets secured in the cybersecurity incident. The share price recovered by 21.2% to 1p.

Coinsilium Group Ltd (LON: COIN) says that it invested $575,000 in crypto currencies and also entered into advisory work with the issuers. The company says that the crypto currency markets are recovering in 2023. Despite that, Web3 projects have more realistic valuations making them attractive to investors. The share price improved by 10.5% to 2.1p.

Cadence Minerals (LON: KDNC) investee company European Metals Holdings (LON: EMH) says the Cinovec project has been classified as a strategic project for the Usti region in the Czech Republic. This means it can receive grants from the Just Transition Fund. The Cinovec project could receive a up to €49m. The share price rose 9.02% to 16.625p.

The latest investment by Quantum Exponential (LON: QBIT) is in Oxford Quantum Circuits. The £299,997 investment, for a 0.34% stake, is part of a £869,000 funding round. Oxford Quantum Circuits designs super conducting circuits and plans to expand in Asia. The share price moved up by 3.33% to 1.55p.

KR1 (LON: KR1) has made four new investments in HydraDX and related Basilisk tokens, Superchain, Argent and Metaprime. HydraDX and Argent were existing investments.  The total investment is just over $1m. The share price improved by 1.03% to 49p.

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Fallers

There have been delays in the provision of the £200,000 bridge loan to TruSpine Technologies (LON: TSP) and it should be received shortly followed by the first tranche of the subscription. Those shares will be issued at 4p each and the price is down 38% to 1.855p.

Head of risk and compliance Simon Mathisen acquired 120,168 shares at 3.5p each in Oberon Investments (LON: OBE), while non-exec Gemma Godfrey bought 200,000 shares at 3.5p each. The share price fell 9.64% to 3.75p.

Lift Global Ventures (LON: LFT) has invested £750,000 in convertible loan notes issued by Trans-Africa Energy Ltd, which develops energy infrastructure projects in Sub-Sharan Africa. It has a joint development agreement with Ghana National Gas Company. This covers four projects for processing and transporting natural gas, where Trans-Africa will have a majority stake. The financial close for the first project could be later this year. The share price slipped by 9.52% to 0.95p.

Emissions reducing fuel ingredients supplier SulNOx Group (LON: SNOX) grew third quarter revenues by 9% quarter-on-quarter to £45,720. Pro forma cash is £790,000 and cash outflow is being reduced. The fourth quarter has started well, and sales staff are being recruited. The share price fell 8.7% to 10.5p.

Altona Rare Earths (LON: ANR) is raising £275,000 via a convertible issued to clients of Optiva Securities. This is convertible at the upcoming £1.25m placing at the time of the move to the standard list and will fund an increase in the shareholding in the owner of the Monte Muambe rare earths project. Align Research has extended its £150,000 loan and with interest £189,750 will be payable on 30 April. The current share price is 7.79% lower on the week at 5.625p.

Marula Mining (LON: MARU) is seeking to move to AIM. Cairn has been appointed as nominated adviser and a joint broker with Monecor will be appointed. A competent persons report on the portfolio of assets in Africa will be commissioned. At 6.1p, down 5.43% on the week, the battery metals company is valued at £1.6m. That is low for an AIM company.

Evrima (LON: EVA) has recovered more than the cost of its $234,000 investment in Premium Nickel Resources through a series of sales raising $299,000. The residual stake is valued at $1.63m. Guy Miller has resigned from the board. The share price dipped by 3.66% to 3.95p.

Vulcan Industries (LON: VULC) generated revenues of £968,000 from continuing operations in the nine months to December 2022. The loss was £697,000. Acquisition opportunities have been identified. The share price declined 2.41% to 0.81p. Craft spirits producer British Honey (LON: BHC) says revenues fell from £8m to £6m and management is cautious about trading. The review of strategy continues. The share price fell 1.32% to 18.75p.

AIM weekly movers: Vast Resources share price trebles

Andrew Hore
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AIM weekly movers: Vast Resources share price trebles

Interim figures for Vast Resources (LON: VAST) show revenues improving by 69% to $1.93m and the loss declined to $5.1m. The share price jumped 210% to 0.65p. John Nettleton reduced his stake from 3.49% to 2.7%. Restructuring of mining operations increased capacity at the Baita Plai polymetallic mine. Production is increasing month-on-month. In Zimbabwe the high court has granted a default order against the government relating to diamond joint ventures which will lead to the release of a parcel of 129,400 carats of rough diamonds. This should be concluded in a few days and the stones will be sold via tender.

Digital media marketing company XL Media (LON: XLM) says full year figures will be in line with expectations with revenue of $73.7m and EBITDA of more than $16m. The growth came from sports and gaming as more states in the US legalise online gaming. Revenues from personal finance marketing fell by more than one-quarter and this part of the business may be sold. The share price rose 42.1% to 21.5p.

Conroy Gold and Natural Resources (LON: CGNR) rose 38.7% to 18.375p following news of gold lodes intersected between the Clontibret gold deposit and Corcaskea gold target. There are three gold lode zones with grades of up to 8.3g/t gold over 0.5 of a metre. This increases the potential for the 65km gold trend in Ireland and the JORC resource of 517,000 ounces of gold should increase signficantly.

Immotion (LON: IMMO) is selling its location-based entertainment business for $25.1m, having raised £100,000 from disposing of Uvisan. Shareholders are likely to receive 3p a share out of the sale proceeds with £6.5m retained for the remaining business after buying back shares from management leaving with the location-based entertainment business. Immotion will concentrate on the home-based entertainment business Let’s Explore Media. This will be expanded via acquisitions. The share price jumped 36.7% to 3.35p. Immotion joined AIM in July 2018 at a placing price of 10p a share.

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Fallers

Digital transformation services provider TPXimpact Holdings (LON: TPX) downgraded 2022-23 guidance with revenues expected to be £80m rather than £90m. EBITDA falls more sharply and could be around £2m. Third quarter like-for-like revenues were 15% lower and there was a sharp reduction in margins. Net debt was £17.5m at the end of December 2022 and management warns it is likely to breach debt covenants. Director share buying sparked a small recovery in the share price. Finance director Steve Winters acquired 220,000 shares at 21.34p each and former chief executive Neal Ghandhi bought 196,986 shares at 22.45p each. The share price slumped by 47.8% to 24p by the end of the week.

Orcadian Energy (LON: ORCA) raised £500,000 at 10p a share to fund the progress towards a field development plan for the Pilot licence area in the North Sea. The share price fell 36.7% to 9.5p. A farm-out process is underway for Pilot. Upside resource potential for Pilot is 131MMbbl. Pro forma cash is £723,000.

Morses Club (LON: MCL) gained 75.17% backing to approve the cancellation of the quotation on AIM. This resolution required 75% of the vote so it only just succeeded. Shareholders owning 61.7% of the share capital voted. The last day of dealings will be 10 February. After that, there will be a matched bargain facility on Asset Match.  The share price dived by 35.8% to 0.443p.

Mongolia-focused oil and gas producer Petro Matad (LON: MATD) raised £4.9m at 2.5p a share. That is 50% more than the minimum that was sought. A retail offer could raise up to £500,000 more. The share price slumped 29% to 2.84p. The cash will fund the testing of the low-cost, high impact Velociraptor prospect, as well as evaluating other oil licence areas and renewable energy projects.

FTSE 100 higher after bumper Non-farm payroll report

UK Investor Magazine
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FTSE 100 higher after bumper Non-farm payroll report

The FTSE 100’s was higher in choppy trade after the release of Non-Farm Payrolls on Friday with the index once more flirting with all-time highs.

After a week punctuated by the views of central bankers, the US jobs report revealed a strong US economy that may lead to a rethink of monetary policy plans outlined earlier this week.

The US economy added a whopping 517,000 jobs in January, smashing estimates of 188,000.

US equity futures sank in the immediate reaction as investors amended their positioning after dovish comments from the Fed on Wednesday.

Such as strong gain in jobs would suggest the economy is taking higher interest rates in their stride, and may keep inflation higher for longer than predicted just two days ago. This would diminish the need to slow rate hikes.

The FTSE 100 retreated from highs of 7,860 to trade at 7,849, up 0.3% on the day, in the wake of the jobs number. Equity trade after the US jobs numbers is particularly volatile so expect the FTSE 100 to remain choppy for the rest of the session.

Although the jobs update will cause central bankers a headache, it does display strength in the world’s largest economy which will ultimately support company earnings. The major question will now be whether markets fixate on monetary policy, or look to economic growth, when positioning for the rest of 2023.

FTSE 100 retailers

Following the Bank of Englands upbeat revisions to UK inflation and growth forecasts yesterday, the FTSE 100’s retail companies were again among the top risers. Lower inflation rates and better economic growth will ease pressures on consumers and act as a tailwind for retail earnings.

The index was also supported by a weaker pound helping support the FTSE 100’s oversea’s earners.

“Also supporting the index was weakness in the pound as currency traders bet that we are close to the peak for UK interest rates after yesterday’s meeting in Threadneedle Street. The fact the Monetary Policy Committee was split on the decision to bump rates to 4% felt instructive,” said AJ Bell investment director Russ Mould.

GBP/USD fell further after the jobs number and provided support for names such as AstraZeneca, Reckitt Benckiser and Diageo.

Fiinu Plc: why this newly London-listed FinTech could be the next Monzo-like phenomenon

UK Investor Magazine
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Fiinu Plc: why this newly London-listed FinTech could be the next Monzo-like phenomenon

The UK Investor Magazine Podcast was thrilled to welcome Fiinu (LON:BANK) for a deep-dive into their innovative FinTech products with a significant underserved market in the UK.

We were joined by CEO Chris Sweeney and Founder Marko Sjoblom to explore their journey from gaining a banking license from FCA and PRA to listing Fiinu on London’s AIM.

Fiinu joins a limited number of companies such as Monzo and Starling Bank in completing the major feat of obtaining a banking license.

Fiinu are set to launch the ‘Plugin Overdraft’ which has the potential to provide millions of people in the UK with an overdraft.

Traditional banks have locked a large number of consumers out of overdrafts and forced them to use services such ‘buy now, pay later’ which can be detrimental to credit files.

Find out more about Fiinu here.

AIM movers: Conroy Gold intersections and Petro Matad slumps on fundraising

Andrew Hore
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1
AIM movers: Conroy Gold intersections and Petro Matad slumps on fundraising

Conroy Gold and Natural Resources (LON: CGNR) is rising on the back of Thursday’s news of gold lodes intersected between the Clontibret gold deposit and Corcaskea gold target. There are three gold lode zones with grades of up to 8.3g/t gold over 0.5 of a metre. This increases the potential for the 65km gold trend in Ireland. The share price increased by 15.7% to 14.75p.

88 Energy (LON: 88E) has recovered following yesterday’s fall when it announced it was raising up to £8.1m (A$15.1m) at 0.55p a share, which was a one-fifth discount to the previous closing price. The share price has recovered 12.5% to 0.675p. The cash will fund the Hickory-1 well at project Phoenix (formerly Icewine East) in Alaska, pay for new project Leonis acreage and provide working capital. There should be enough cash for at least 12 months.

Harvest Minerals (LON: HMI) share are moving upwards following an investor presentation earlier in the week. The share price has risen 7.58% to 8.875p.

Fintech Tintra (LON: TNT) has appointed Constantine Chikosi as director for strategic initiatives for Africa. The share price has been falling this week and it perked up 6.67% to 160p.

Immotion (LON: IMMO) continues to rise on the back of the disposal of the location-based entertainment business for $25.1m and a promised 3p a share dividend. There will be £6.5m of the proceeds left to invest in the remaining business. The share price improved a further 6.25% to 3.4p.

Late on Thursday, Mongolia-focused oil and gas producer Petro Matad (LON: MATD) launched a fundraising and that raised £4.9m at 2.5p a share. That is 50% more than the minimum that was sought. A retail offer could raise up to £500,000 more. The share price slumped 34.2% to 2.7p. The cash will fund the testing of the low-cost, high impact Velociraptor prospect, as well as evaluating other oil licence areas and renewable energy projects.

Morses Club (LON: MCL) gained 75.17% backing to approve the cancellation of the quotation on AIM. This resolution required 75% of the vote so it only just succeeded. Shareholders owning 61.7% of the share capital voted. The last day of dealings will be 10 February. After that, there will be a matched bargain facility on Asset Match.  The share price dived by one-third to 0.4995p.

Sustainable polymers developer Itaconix (LON: ITX) has raised £10.3m at 5.1p a share, while an open offer could raise up to £400,000. The share price slipped by 3.74% to 5.15p. The cash will fund product development, capital investment and working capital. The 2022 revenues more than doubled to $5.6m, which is better than expected. Tertiary Minerals (LON: TYM) is raising £300,000 at 0.12p a share, while the share price fell 3.57% to 0.135p. The cash will be spent on copper projects in Zambia and Nevada. Drilling is expected in Zambia later this year.

Shell, Amazon, and Avacta with Alan Green

UK Investor Magazine
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Shell, Amazon, and Avacta with Alan Green

Alan Green joins the Podcast as we delve into global equities and the key themes driving markets this week.

We discuss:

  • Shell (LON:SHEL)
  • Amazon (NASDAQ:AMZN)
  • Avacta (LON:AVCT)
  • AQUIS (LON:AQX)

We look at Shell’s record profits and what the company needs to do in future to support the share price. The company says it will invest their bumper profits in renewables, we question how realistic these claims are.

Amazon is feeling the pressure of a slowing global economy reflected in stuttering growth in their international sales. We look at whether Amazon will be seen as a momentum stock or value stock going forward.

Alan finishes by running through the latest news from Avacta and AQUIS.

Tekcapital shares jump after Innovative Eyewear surges on the NASDAQ

UK Investor Magazine
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Tekcapital shares jump after Innovative Eyewear surges on the NASDAQ

Tekcapital shares jumped 22% to the highest level since September last year after shares in their portfolio company Innovative Eyewear surged in the US.

NASDAQ-listed Innovative Eyewear was over 200% higher at the time of writing on Thursday.

Tekcapital hold a 70% stake in Innovative Eyewear and today’s rise represents a gain in the value of TEK’s holding in the region of $14m.

Innovative Eyewear have developed a range of smart eyewear and partnered with major brands including Nautica, and more recently, Eddie Bauer.

“Few names are as renowned as Eddie Bauer in outdoor recreation,” said Harrison Gross, CEO of Innovative Eyewear, at the time the Eddie Bauer partnership was announced in December.

“Our Eddie Bauer smart eyewear collection, powered by Lucyd, will continue Eddie Bauer’s legacy of bold and beautiful craftsmanship, coupled with innovation, and will align perfectly with today’s adventurous lifestyles. We believe outdoor enthusiasts are looking for designer eyewear that both protects their vision and allows them to remain connected to their digital lives in an open-ear, handsfree format.”

Innovative Eyewear technology has the potential to save a great number of lives by reducing the distractions associated with handheld devices.

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