Exscientia set to propel Frontier IP NAV

Andrew Hore
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Exscientia set to propel Frontier IP NAV

Frontier IP (LON:FIPP) investee company Exscientia has filed an amended registration statement ahead of a planned Nasdaq listing. If that goes ahead then Frontier IP will have a much more valuable investment than the current portfolio valuation.
Exscientia could account for a significant proportion of Frontier IP’s portfolio of investments, and the total value will substantially exceed the level at the end of 2020. The June 2021 accounts have not been published yet.
Oxford-based Exscientia is a spin-out from the University of Dundee and uses artificial intelligence to help drug discovery. Exsc...

Tip update: Holland deal opens up market for Maestrano

Andrew Hore
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0
Tip update: Holland deal opens up market for Maestrano

Maestrano (LON: MNO) has secured a partnership with US rail inspection company Holland and this will enable the Cordel platform, that collates and analyses infrastructure geospatial data for rail, access to additional customers in North America.
In just over one month the share price has risen from 12.5p to 14.25p, although the bid/offer spread is 13.5p/15p. It is still early days, but this deal makes it appear even more certain that Maestrano can be profitable in the year to June 2023.
Maestrano already has contracts in the US, but this deal could accelerate expansion in the region. As pointe...

Demand recovers for Medica radiology services

Andrew Hore
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Demand recovers for Medica radiology services

Levels of elective surgery are still lower than before the pandemic, but emergency work has recovered at radiology services provider Medica Group (LON: MGP). Volumes continue to recover, and international businesses are contributing.
The recovery and initial contributions from recent acquisitions enabled interim revenues to improve by 56% to £26.4m, while underlying pre-tax profit doubled to £3.98m. Net debt is £35,000 although there is also contingent consideration payable on acquisitions. The interim dividend was raised by 5% to 0.89p a share.
There are two main parts to the UK business. Nig...

New standard listing: Alkemy Capital seeks technology metals buy

Andrew Hore
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0
New standard listing: Alkemy Capital seeks technology metals buy

Alkemy Capital Investments offers investors a team of directors with experience in the minerals sector and of securing deals. The focus is mining and technology metals. In other words, it is another company seeking a project that can supply metals required for battery technology.
Management is the important thing at the moment. Alkemy Capital is less than one year old and there is no trading history. Annual overheads are £179,000 before any acquisition activity occurs.
The company has placed just under 50% of its share capital at 50p a share. The share price started and ended the first day of ...

Trident Royalties share price dips as company posts loss

Liam Roche
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Trident Royalties share price dips as company posts loss

Trident Royalties provides update on transactions completed

Trident Royalties on Monday confirmed a loss of $930,000 for the half-year ending in June 2021.

It came in above last year’s loss of $550,000, which was down to a slowdown in activity on the Trident tenement at Koolyanobbing.

Over the six-month period the firm completed on three transactions, amounting to a total of eight royalties.

Trident acquired a 60% interest in a gross revenue royalty over the Thacker Pass lithium project in Nevada, USA, of three net smelter royalties over the Pukaqaqa copper project in Chile and a portfolio of four gold royalties over exploration and development stage projects in Western Australia.

Additionally, Trident also provided an update on progress at the Rebecca gold project, which contains over 1.1m ounces of gold and over which it holds a 1.5% net smelter return royalty.

The Trident Royalties share price is down by 2.06% at the time of writing on Monday.

US bipartisan Infrastructure bill only the first step says fund adviser

Liam Roche
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US bipartisan Infrastructure bill only the first step says fund adviser

The US bipartisan Infrastructure Investment and Jobs Act was first introduced in the summer and swiftly passed.

It includes around $550bn in new federal investment in America’s roads and bridges, water infrastructure, resilience, internet, and more.

It is intended ‘to grow the economy, enhance US competitiveness, create good jobs, and make the US more sustainable, resilient, and just’.

However, there are hopes that there is more to come, as it left some stones unturned.

Will Argent, fund adviser to the VT Gravis Clean Energy Income Fund (CLEAN) said: “In the US, the bipartisan Infrastructure Bill disappointed somewhat on climate change initiatives, but it is a start and includes various elements that will promote clean energy alongside climate resilience measures.”

There has been allocations to rebuild the electricity grid, which includes thousands of miles of new power lines and expanding renewable energy capacity as well as elements designed to promote the electrification of transport and improving the network of EV charging points.

It should be noted, however, that the bipartisan deal is a first step,” says Argent, “There is a proposed Democratic-only Budget Bill of c.$3.5trn in the pipeline, which is meant to address President Biden’s promise to move the country towards a carbon-free economy. Within this there is a proposed $150bn payment program designed to reduce greenhouse gas emissions from the electricity sector.”

Utilities could be rewarded to increase their production of power from low-emissions sources like solar, wind and hydro. There could also be penalties for those that don’t.

“Regardless of the exact monetary figures, investment in the US decarbonisation effort will be a very long-term structural dynamic.”

“Companies with strong strategic positions in the US renewable energy sector will likely benefit with opportunities arising from future renewable energy generation capacity build out in the country – whether the direct result of Federal initiatives, State-level initiatives, or broader corporate sustainability ambitions,” says Argent.

JD Sports forays into beauty business after acquiring stake in Hairburst

Liam Roche
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JD Sports forays into beauty business after acquiring stake in Hairburst

JD Sports has been considering venturing into other industries for some time

JD Sports is all set to move into the beauty industry having acquired a stake in Hairburst, an online beauty brand.

Hairburst, which sells vitamins, shampoos and styling products, has 45 staff and 1.5m followers across social media was founded in 2014.

The size of the deal has not yet been confirmed. It has been suggested that JD Sports will assist Hairburst in buying a number of bolt-on acquisitions to grow its collection of beauty brands.

It is a signal of the growth of online brands within the beauty industry.

JD Sports has also signalled its intention to grow beyond the sportswear industry.

It had considered making offers for both Debenhams and Topshop as the high street brands became available earlier this year.

While some shareholders expressed concerns about taking the business away from its area of expertise.

Peter Cowgill, executive chairman, had played down the company’s interest in other companies saying that JD Sports “looked at everything which either extended its geographical reach or sold other products “which are relevant to a style-conscious consumer”.

Cowgill said of the Hairburst stake: “We are pleased to have made this initial acquisition in the beauty sector and have been impressed by the capabilities of the management team, who have a strong identity and connection with millennials and Gen Z consumers.”

The JD Sports share price is down by 1.04% on Monday.

Rolls-Royce share price jumps after securing deal with US Air Force

Liam Roche
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0
Rolls-Royce share price jumps after securing deal with US Air Force

Rolls-Royce deal could earn $2.6bn for firm

Rolls-Royce confirmed on Monday that it was chosen to provide engines for the US Air Force B-52 Stratofortress bombers.

The deal could be worth as much as $2.6bn for the British engineering company.

The F-130 engines will be made at Rolls-Royce’s Indianapolis, Indiana facility.

They were selected as replacement engines for the bombers, for an initial $500m six-year deal, which could reach as high as $2.6bn over the long-term.

The Rolls-Royce share price is up by 6.73% during the morning session on Monday, its highest point since June 2020.

“Rolls-Royce continues to bounce back. Having already seen a pick-up in its share price in recent weeks thanks to more restrictions being lifted on air travel which should benefit its plane engine maintenance operations, its shares have now hit an 18-month high after a new contract win. It has a struck a deal with the US Air Force which means its F-130 engine will power the B-52 for the next 30 years,” says Russ Mould, investment director at AJ Bell.

Jefferies analyst Andy Douglas told Reuters that the news “provides additional comfort to longer-term consensus forecasts and is a positive for sentiment”.

The new engines will enable the bombers to continue missions into the 2050s.

FTSE 100 moves up as oil prices nears three-year high

Liam Roche
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0
FTSE 100 moves up as oil prices nears three-year high

The FTSE 100 advanced 0.5% to 7,087, with oil producers and banks leading the way. European stocks did their best to press ahead, but Asia was more volatile.

“There were plenty of factors to trouble investors as the new trading week kicked off, yet there certainly isn’t panic in the air,” saysRuss Mould, investment director at AJ Bell.

Evergrande’s problems have not gone away, while “Inflation remains problematic for many companies and is hurting profit margins, and Germany’s elections failed to produce a clear winner which means short-term uncertainty until a coalition can be agreed.”

Nonetheless, investors have not been deterred from seeking more opportunities in the markets.

“The Brent Crude oil price continued to rally, rising 1.2% to $79.03 a barrel on supply concerns and putting it back at levels not seen since October 2018. That helped put Royal Dutch Shell’s share price at its highest level since March 2020, although it is still some way off its levels seen pre-Covid.”

“Many investors, including big asset managers, will be kicking themselves that they shunned oil stocks as part of a global shift towards more ESG-friendly companies. Despite the transition to renewable energy around the world, it is clear oil is still needed in today’s world.

FTSE 100 Top Movers

Rolls-Royce (7.37%), IAG (4.35%) and Compass Group (4.10%) are leading the pack during the morning session on Monday.

At the other end, Halma (-2.79%), Ashtead Group (-2.32%) and Antofagasta (-2.42%), have seen the biggest falls across the FTSE 100.

Bushveld Minerals confirms jump in revenue in half-year results

Liam Roche
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0
Bushveld Minerals confirms jump in revenue in half-year results

Bushveld’s cash or cash equivalents at $31.6m at end of June

Bushveld Minerals (AIM:BMN) made $47m over the six months to June 2021, as its revenue rose by 9% compared to the same period a year prior.

Despite overall sales being lower, the average realised price of vanadium was up.

Bushveld produced 1,574 metric tonnes of vanadium during this period.

Other operational enhancements, including a maintenance programme, raised Q2 production by 28.8% during Q2.

The AIM-listed company recorded an EBITDA loss of $10.8m, meaning its cash or cash equivalents was at $31.6m at the end of June.

During the period, approximately US$12.7mln was realised from the sale of the investment in Invinity Energy Systems PLC, although the profit on the sale is not included in EBITDA.

The profit realised on the original investment of US$5 million was approximately US$7.7 million.

The Bushveld Minerals share price is down by 3.24% on Monday morning.

“The operational stability and improved production performance achieved in the last two months of the period under review was carried through into the first two months of the second half, which bodes well for reducing unit costs in the remainder of the year,” said Bushveld chief executive Fortune Mojapelo.  

“We are confident of maintaining this rhythm, putting us on course to meet our production and cost guidance for the full year.”

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