African Pioneer (AFP) the exploration and resource development company with advanced projects in Namibia, Botswana, and Zambia, announced a fundraising of £420,000 from existing shareholders and new investors to facilitate advancement of the Ongombo copper gold project in Namibia. The net proceeds from the Fundraising are planned to be used in relation to the following project activities with the main focus on the Ongombo project in Namibia.
Comment: The market has been hard on explorers of all shapes and sizes in London, something which is true for AFP despite previous decent funding, and the latest moves. That said, advancing Ongombo could yet move the dial.
Zinc Media Group (ZIN), the award-winning television, brand and audio production group, is pleased to announce a trading update for the period ending December 2024, subject to audit. Adjusted EBITDA increased by 50% to £1.5m (FY23: £1.0m), in line with market expectations. Revenue of £32m from continuing operations (FY23: £40m). ZIN said the start of the new financial year has been excellent, with a slew of new, high-profile commissions and launches including the BBC documentary Israel and the Palestinians and a new multimillion pound primetime quiz show, The Inner Circle, hosted by Amanda Holden.
Comment: The sharp rise in EBITDA is impressive. But the attractions of Ms Holden notwithstanding, ZIN still seems to be treated by the market as a three steps forward / two steps back affair by the market.
Warpaint (W7L) announced that Schroders has gone from 10.9% to 11.24% on the shareholder register.
Comment: Presumably, even at Schroders there would have been an eyebrow or two raised in the wake of the share price rug pull since last week’s trading update. Presumably, the market is not prepared to wait for recent Brand Architekts acquisition to take up the revenues growth slack, which is somewhat harsh.
All Things Considered Group AQSE: ATC), the independent music company housing talent management, live booking, merchandising, talent services and events, is pleased to provide an update on trading for the financial year ended 31 December 2024. The trading performance reported in this statement is based on unaudited management accounts. Excellent FY24 financial performance with 100% growth in Group revenue to circa £50m (FY23: £24.1m) and profitability milestone surpassed with adjusted operating EBITDA anticipated to be approximately £1.5m (FY23: loss of £0.46m).
Comment: We have an eye catching revenue number here, something which is thankfully enough to get ATC in the EDITDA positive box, something which one would imagine that not many in the market would be aware of.
Caracal Gold (GCAT), the expanding East African gold producer with over 1,300,000oz JORC compliant gold resources, announced a funding update. The Company has raised £440,000 by way of a Subscription at a price of £0.003.
Comment: It is interesting to note that GCAT has apparently raised more money as a suspended stock, than it did when the shares were trading. Presumably, the soaring gold price is helping bolster the cause.
UK Oil & Gas UKOG) announced that a workover campaign, culminating in the deeper seating of a downhole pump in Q4 2024, has achieved a significant increase in the Horndean field’s production and resultant revenues (UKOG 10% interest). January 2025 full field production averaged 200 barrels bopd, 60% higher than the 125 bopd achieved in January 2024.
Comment: It is pleasing to note that UKOG is now producing more than your local filling station sells in terms of bopd…
Katoro Gold (KAT), the strategic energy and precious minerals exploration and development company, announced conditional equity financing of £317,500 at a placing price of 0.05p per Placing Share. KAT said this expansion of Katoro’s critical minerals exploration portfolio is a significant step forward on an exciting pathway. Ontario is a world-class mining jurisdiction, among the top 10 jurisdictions in the world for mineral exploration spending and well-positioned to be a global supplier of critical minerals.
Comment: KAT is one of the UK stock market’s coterie Canada focused companies, looking to get over their respective lines. It is certainly not an easy race.
EnergyPathways (EPP) announced an update on its pre-Front End Engineering and Design activities for the Marram Energy Storage Hub and the selected technical design for the initial phase of the MESH development. The technical engineering and design studies have been undertaken by EnergyPathways in conjunction with its strategic partners Wood plc, Mermaid Subsea Services (UK) Limited and PDi Ltd. EPP said it was pleased to provide a summary of what has been a very active period for EnergyPathways as we progress MESH through the pre-FEED stage and we remain on track to achieve FID at the end of 2025. With the development design for the MESH integrated energy system now framed, we can move forward to deliver a major energy project to support the UK’s energy transition ambitions.
Comment: FID by the end of the year is already in the mix, as is the Milliband friendly energy transition ambition. What will galvanise the stock market and the shares from now is how much cash EPP will accrue from all of this? The risk is the some traders will exit now with healthy profits and return later in the year.
EnSilica (ENSI), a chip maker of mixed-signal ASICs, announced its unaudited results for the six months ended 30 November 2024. EBITDA (£0.2) million (H1 FY24: £0.5 million). Operating loss of £0.8 million (H1 FY24: £0.0 million). ENSI noted that chip supply revenue more than doubled and five design & supply contract wins, with more expected by year end. There was successful implementation of strategy centred on exploiting high-growth and tech-driven markets.
Comment: Given all the contract wins it is perhaps disappointing that the company is still trading at a loss, even though one would assume that the latest numbers are too backward facing to include recent strong wins.
Light Science Technologies Holdings (LST), announced a distribution framework agreement with Gavita International B.V.. The agreement enables the Group to distribute lighting products developed by Gavita’s subsidiary Agrolux Nederland B.V., a global supplier of horticulture lighting solutions. LST said the opportunity to work with Argolux and provide an expanded product range to existing and new clients provides an exciting opportunity for us to target a wider end audience. This partnership presents significant potential future benefits for us to expand our global presence and reach as we work on complementary opportunities.
Comment: One can see that LST is expanding its relationships and footprint, something which should ensure it can fire on all three of its sector cylinders over the rest of 2025. Recent director buying / stakebuilding underlines the merit of the opportunity here.
Synergia Energy (SYN) updated regarding the Company’s two flagship projects, the onshore gas and condensate production in India and its carbon capture and storage project offshore United Kingdom. SYN said on Cambay, we are pleased to be able to report further details on the forward drilling and workover program for 2025 with our partner Selan as part of the US$20 million work program where we are fully carried.
Comment: It is clear that since the autumn many followers of the stock simply got fed up with waiting, and so since then, even if SYN says it is going to be the next Shell Oil, we are looking at the law of diminishing returns being in operation here.
Likewise Group (LIKE), the fast growing UK flooring distributor, announce the completion to purchase a freehold Logistics Centre in Ivybridge near Plymouth. The consideration of £1.2 million was funded from internal cash. This increases the Group’s freehold property portfolio to £23.3 million. LIKE said the Group has extensive product launches planned for Q1 and Q2, supported by a significant number of Point of Sale and Display Stand activities to materially increase market presence in independent flooring retailers and contractors.
Comment: Although flooring is and remains not the most exciting of areas to operate, especially for the stock market, the expansion at LIKE is clear, and is being carried out at pace.
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.
