Oak Securities, the broker which has certainly been on the front foot in terms of new listings on the London market this year, issued a new research report on Predator Oil & Gas (PRD), with a price target of 148p, versus 10p currently.
Oak said it was solely focusing on the exciting potential of the MOU-5 exploration well in the Guercif licence, onshore Morocco. This well is targeting a 5.9 TCF gas prospect with the potential of additional value added from helium being present. Using a RENAV we derive a value of 111 p/share from the natural gas and 36p/share from the helium. This gives combined value and target price of 148p.
Report: Predator MOU-5
Comment: MOU-5 already has been the asset that speculation has surrounded in a very positive way, with Oak highlighting this. Apart from the massive prospective share price lift, there is the sizzle of helium being in the mix, currently one of hottest commodities.
East Star Resources (EST), which is exploring for copper in Kazakhstan, announced it has raised gross proceeds of approximately £1.16 million from an oversubscribed subscription and placing at a price of 1.15 pence. Following the Company’s discovery of the Verkhuba Copper Deposit in 2023 (20.3Mt @ 1.16% copper, 1.54% zinc, 0.27% lead), East Star’s said it believes it can add significantly to the value of this deposit by increasing confidence in, and potentially growing, the resource, and advancing metallurgical and engineering studies to determine the potential economics of a mining operation.
Comment: Verkhuba alone merits EST having a share price multiple times the current one, something that merits the company having a much better stock market profile than most explorers. The share price fall from 4p in July is unfair even by current sector standards.
MicroSalt (SALT), a provider of full-flavour, natural salt with approximately 50% less sodium, announced multiple developments in its patent portfolio worldwide. The Company received a Certificate of Invention Patent in China for its patent application entitled “Improved Low Sodium Salt Compositions,” now issued as Chinese Patent No. CN114206133.
Comment: After tripling initially after the IPO, the share price is now well below it, as it would appear the market is not in love with low sodium salt. It will take a lot more than today’s RNS Reach to turn the tide.
EnergyPathways (EPP), an integrated energy transition company, announced the launch of our new interactive investor website. For both existing and prospective shareholders, the new investor website brings all EnergyPathways content into a single integrated platform to better inform and engage with investors and stakeholders. EPP said that with a wide range of video content, updates, and insights about its ongoing activities, the investor website will serve as a valuable resource. It invites its stakeholders to explore the website and share their feedback as it continues to evolve its communication strategy.
Comment: EPP finesses its excellent rabbit out of a hat funding news with a brand new website. That said one is perhaps not sure how many investors and would be investors sign up to such resources. The concept does feel a little 2000s.
Woodbois (WBI), announced the successful subscription of £1 million from new and existing shareholders. The net proceeds of the fundraising will strengthen the Company’s balance sheet whilst providing additional funding to accelerate exports of its product. Axis Capital Markets Limited has subscribed for the shares on behalf of its clients.Comment: “If you have raised cash countless times, but still need more cash, choose Axis.” But as WBI’s CFO said last week: “The first half of 2024 has been a period of continued transformation and operational restructuring for Woodbois. Despite the challenges we’ve faced, our financial performance reflects the progress made in stabilizing our operations and laying the groundwork for future growth.”
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion
