Share Talk – Steve Shares 27th May
Welcome, the publication is an interactive weekly update on what’s happening with the trending stocks this week. I highlight and comment on the stocks that you want me to highlight or comment on. The more you speak the more I Share! I also provide a round up of Share Talks interviews over the week. If you think that a certain share or person should be mentioned in the next edition let me know my details are at the bottom of the page… If there is anything Share Talk can do to help you let us know!
Last weeks Steve Shares was well followed with the main comments around the TipTv coverage on Westminster Group Plc (WSG) the main thoughts were of the impending news of their major long term airport contract opportunity which is expected to have annual revenues in excess of £35m. Again to reiterate they had previously announced that the negotiations and contract preparations were making good progress and the group had been actively working to prepare the required support structures and infrastructure in order to be able to deliver the project. Main thoughts are based on that work being part of the agreements and when concluded will form the basis for the contract negotiations to be concluded. If that contract is delivered it could make its market cap of around £20million look potentially small. Thank you for your comments and thoughts around this and again thank you for your interactions.
This week I covered Abzena (ABZA) and Mkango (MKA) The write ups are at the end of this publication as always, but here is the link for the company’s covered via TipTv: http://www.share-talk.com/share-news/tiptv-finance-abza-lon-abza-and-mkango-resources-aim-mka/
This weeks stocks…
Anglo African Oil & Gas plc (AAOG)
A mixed bag of news this week came as the announcement arrived that the re-perforating and the testing of the TLP-102 well has confirmed the presence of hydrocarbons and pressure within the reservoir albeit without achieving any flow. The company has only tried one way to stimulate the well at present and that news caused the share price to fall. However they have gained data and knowledge and will evaluate the data accumulated during the perforation to determine the best solution and identify further stimulation techniques with the intention of bringing the well into production, so there is still hope in the short term for the work overs.
Other wells have had success in their workovers, production from TLP-101ST have increased the flow rate of the well by 40 per cent from 32 bopd to approximately 45 bopd and will shortly be seeking to further optimise the flow rate by the application of more advanced stimulation techniques. With the next stage of the work programme to drill a new well targeting the Mengo sands this will also target the deeper Djeno sands. With the expectations of the company being so high since listing is the sentiment still here for the longer term holders? Has the shorter term work overs lack of success caused a drastic sentiment change? Was the work overs already priced in? Thoughts and comments are welcomed.
Premier African Minerals (PREM)
Good news for holders this month from the company, they announced earlier on this month that the commissioning of the RHA mine was progressing well and that the Company anticipated that its first shipment of wolframite concentrate would be delivered in the beginning of May. With comments from the CEO of “ “I am pleased to report that the XRT sorter is exceeding our expectations and has proved capable of recovering up to 100% of mineralisation contained in the run of mine (ROM) feed to the sorter” things were looking up. This week at the end of the month, they have announced that they will now commence the first shipment of concentrate from RHA to Durban following the receipt of all required permits from the Zimbabwean authorities.
Looking at the chart it seems to now be a long term hold into the next reporting periods however many missed the other section of the rns which highlighted that Drilling continues at their Zulu lithium and tantalum project with the aim of increasing the interim maiden resource, that is expected to cover a limited length of the so far known 3.5 kilometre strike length. Mineralisation was announced to continue to be encountered as anticipated, and exceptional results will be released as and when they are available. Was the exceptional comment meant to be a wink to the market? After recent gains in the shareprice is this no longer a hold for investors from their previous highs in the chat forums? Thoughts and comments are welcomed as always.
Shares in Petrofac on the FTSE 250 crashed after the company suspended Chedid after he, and Chief Executive Ayman Asfari, were arrested and questioned by police as part of the SFO’s ongoing investigation of suspected bribery, corruption, and money laundering related to Unaoil. Chedid, who has resigned from the board, and Asfari were both released without charge. With brokers targets all over the place as the market reacted to the news does this drop represent an opportunity to traders?
Acacia Mining (ACA)
This week came the announcement after 20 years of mining in the country that an investigation by a presidential committee in Tanzania said this week that the value of minerals within concentrates in containers were more than 10 times the declared amount. Acacia Mining called for there to be an independent review. Acacia is losing $1m a day as a ban on exports of gold and copper from Tanzania remains in place. That caused shares in Acacia to plunge by a record 30 per cent. Acacia said Friday that based on more than 20 years worth of data “it cannot reconcile these with the findings of the Committee. Is this the end of mining in the country? Should there be an independently run consortium in place to do random testing to ensure compliance of any minerals taken out of the ground to ensure a good working ethic?
What company’s do you consider undervalued and news items that the market has missed…? Let me know and I will announce via the next issue of Steve Shares…
My thought of the week
Whilst the UK basks in glorious sunshine on the other side of the planet there is a person who against great adversity has been in a very snowy environment. Those that have followed my story will know of Jeff Smith aka BigMoose. The news on Friday morning of this week is that he had reached the summit of Mount Everest. Against great adversity in his life he has overcome many challenges but none as big as this! I wish him well for the descent and will look forward to seeing him home safe so he can carry on with his journey in helping others less fortunate than him. Well done and congratulations!
Share Talk round up
In this interview @conkers3 spoke with part-time private investor and blogger Steve Holdsworth @sholdsworth1963 his journey has taken him from growing up in Hertfordshire into London where his first employment was as a junior at Barclays Bank. Not liking the financial cararrear path he then tried his hand at sales but did not like selling or couldn’t? Working at a market research company he gained his first interest in stocks and shares from some of the colleagues he worked with. He found bulletin boards online and made some share purchases without doing a lot of research. However later he found Digital Look and Hemscott (Morningstar) for screening stocks. Steve is now looking to invest on a full time basis and Steve has had many investment successes and some made some notable mistakes during the past twelve years. This discussion provides an insight into the journey that Steve has taken Listen here: http://www.share-talk.com/share-news/conkers-corner-speaking-with-steve-holdsworth/
Share Talk on TipTv
Zak Mir interviews Mick Billing, Executive Chairman of Thor Mining on Tip Tv. Watch the Video Here: http://www.share-talk.com/share-news/mick-billing-exec-chairman-of-thor-mining-plc-asxaimthr-video/
Share Talk Interviews
Share Talk spoke to Justin Tooth, Executive Chairman of FCR. Listen here
Share Talk spoke to David Archer, CEO of Savannah Resources Plc. Listen here
Share Talk spoke to Alex Lemon, President of Mkango Resources. Listen here
Share Talk spoke to Gaz Bisht, Independant Consultant to Empyrean Energy Plc. Listen here
Share Talk has Presented lots of articles and can be found here http://www.share-talk.com/share-news
The Biz Lounge… Taking the stress out of stocks
TipTv Write ups
Abzena aim and business model is to provide proprietary technologies and complementary services to organisations involved in the development of biopharmaceutical products.
Working with companies and academic groups from all over the world, including what they consider to be the majority of the top 20 biopharmaceutical companies, Abzena supports the development and manufacture of better treatments for patients. Currently they have Twelve antibodies which have been created using Abzena’s technologies and are currently being progressed through to clinical development. Looking at the financials of the company there is a low free float of shares with the Directors, Invesco, Woodford and Touchstone holding around 70% of the 213m shares in circulation.
The revenues are showing in profit and the long term chart is one of a down turn in the market cap of the company over the last 5 years. In the last week they announced a major deal had taken place, to simplify two parties Bioverativ will pay US$400m upfront and up to US$425m in milestone payments to acquire all assets of True North Therapeutics which owns the worldwide rights to abzena’s TNT009 product, which is a first-in-class monoclonal antibody to treat a disease called cold agglutinin disease (CAD) this drug forms a small part of Abzena’s Inside product portfolio.
CAD is a rare and chronic haemolytic condition that often leads to severe anaemia, requiring numerous transfusions, and can result in life-threatening thrombotic events. In America they were granted breakthrough therapy designation for the treatment of hemolysis in patients with primary CAD, and plans for the full clinical development programme, including a registration programme, are well underway. The decision was based on data from a small clinical trial, which showed that TNT009 normalised haemoglobin levels in six of six study participants with primary CAD. This resolved their anaemia issues and further associated medical complications that normally arise from the condition such as transfusions and other invasive treatments. So a very early stage development but with massive potential upside based against the initial studies.
Initially coming to the AIM market in June last year they have a mixed portfolio of assets on the books. The company’s main direction has been around their projects in Malawi. The first is called Songwe Hill and historic data and further proved by recent studies, by their associated partners, shows a high concentration of the main heavy and light rare earth elements. These are attracting attention world wide for their use in renewable energies and as such have attracted worldwide attention. These rare earth elements effectively make magnets stronger and more energy efficient and are used in electric vehicles and wind turbines. The Pre Feasibility Study Results put a NPV of US$345m and IRR 37% at 2,841 tons per year and a 18 year mine life in place.
At the end of last year, they entered into an agreement with a company called Noble who are effectively a broker for the sector of rare earth elements between the producer and the end user. Noble is largest commodity trader in Asia, which is the biggest consuming country of rare earths. They have good infrastructure in place and the dry port about to be completed. But of interest this week is their other asset called Thambani, they upon listing had a low impact trenching and grab samples. And other work done included satellite imagery for the licence area, interpretation of airborne geophysical data, ground radiometric surveys, reconnaissance geological mapping and litho-geochemical sampling programmes. That work had identified a number of potential uranium and associated niobium-tantalum targets over the Thambani area and this week they have announced the initial results of their uranium asset.
These surveys revealed two distinct uranium anomalies occurring across the Thambani East and West Ridges: a strong uranium anomaly, measuring approximately 3 by 1.5 km, and a second 1.5 km by 0.4 km occurring along the foot of the West Ridge. This week they have released results that are of an extremely high grade and confirm the hopes and expectations of the company there. However with the projects being seen as slow burning by many used the resulting rise in the share price as an exit point, the share price is now below that of the initial listing and their placing price.
Let me know what should be in next weeks article and I will report on the shares that matter to you…
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned