Alkemy Capital Investments (ALK) and its wholly-owned subsidiary Tees Valley Lithium Limited reported that TVL has entered into an MOU with Recharge Industries Pty Ltd for Lithium Hydroxide tolling and Spodumene sourcing.
Comment: Alkemy has not put a foot wrong since the start of the autumn, both in terms of its newsflow, and the timing of such news. The latest MOU regarding Lithium sourcing should keep this fundamental momentum flowing, with a read across in share price terms.
All Things Considered Group (AQSE: ATC), an independent music company, updated on trading for the year ended 31 December 2022. The Board expects to report FY22 results in line with market expectations, with double-digit revenue growth and a significantly improved adjusted loss before tax. The company said improving trading conditions seen in the first half of the year continued through the second half as markets continued to get back to normal and live touring resumed. Strong progress was achieved in the Group’s core artist management and development business with the recruitment of talent representatives supporting new client acquisition.
Comment: A company which has managed to hide its light under a bushel, even though, if nothing else, the business model and the area of business is likely to appeal to many in the typical stock market investor demographic.
After the recent acquisition and £4.75m placing, we see that Brave Bison (BBSN), the social and digital media company, has acquired a new significant shareholder. Michael Anthony Ashcroft, perhaps the Baron Ashcrofit who was the former Deputy Chairman of the Conservative Party, is in on the shareholder at 7.2% according to the latest TR1.
Comment: Having the odd Billionaire on your shareholder register can be helpful, especially if your market cap is only £29m, and you want to raise the profile of the company.
Panther Metals (PALM) revealed a stakebuilder in Ian Russell Bagnall, somewhere who is probably not a Peer of the Realm, or a billionaire (yet). Mr Bagnall is revealed to have raised his stake in the company focused on mineral exploration in Canada, which recently confirmed the discovery of an additional volcanogenic massive sulphide mineral system at the Obonga Project.
Comment: So far the market seems to have underappreciate the significance of the VMS, apart from the top up TR1 announced today. There is now quite a disconnect in the valuation of the company between before and after the discovery at Obonga.
Arc Minerals (ARCM) announced an update on the proposed Joint Venture with a subsidiary of Anglo American in respect of its copper interests in North Western Zambia. ARCM said that under the proposed Joint Venture agreement, Anglo American will have the right to retain up to 70% ownership in the Joint Venture. Arc Minerals, has substantially progressed negotiations with Anglo American, including the terms and conditions of a Joint Venture Agreement and associated definitive agreements. All substantive commercial terms of the proposed Joint Venture remain unchanged from those previously announced.
Comment: Perhaps a placeholder announcement, but it is understandable that ARCM may wish to stir the pot a little given that for the company to be associated with Anglo American in any way – yes, that Anglo American, would in normal stock market conditions cause the stock to head for the skies, rather than go from 3p to 4p, and then back to 3.5p.
DeepVerge (DVRG), the environmental and life science group of companies, finessed yesterday’s late announcement regarding a humungous €10m contract, by immediately appointing Andrew Waters FCA as Chief Financial Officer (CFO) and as a Director of the Company.
Comment: Given the company’s recent travails, it would appear that Mr Waters is joining the group at just the right time, if only to count up the tsunami of cash which may flow from the contract announced after the close yesterday.
REACT (REAT), the specialist cleaning, hygiene, and decontamination company, announced its final results for the year ended 30 September 2022. Revenue increased by 78% at £13.70m (2021: £7.70m)), including a contribution of c. £1.6m from LaddersFree post acquisition. Gross profit up 37% at £3.26m (2021: £2.37m). Adjusted EBITDA up 20% at £953k (2021: £795k).
Comment: A couple of adages come to mind with this blow out update from REACT. The first is that where there is muck, there is brass, and it is a dirty job, but someone’s got to do it. The company really has cleaned up, and may do even better on the stock market if the clue was in the name as to what it does.
Longboat Energy (LBE), the emerging full-cycle E&P company, said it has noted recent market speculation and confirms that it is exploring opportunities to broaden its strategic remit. The company said it is in advanced discussions with a number of parties regarding several opportunities across all phases of the E&P cycle in the South-east Asia region.
Comment: Although one might be forgiven for having missed the speculation regarding Longboat broadening its remit, it is evident that the company is keen to do so, and with its £10m market cap burning a hole in its pocket regarding a number of deals. Presumably, it will only do one of them.
SmartSpace Software (SMRT) the provider of ‘Integrated Space Management Software’ for smart buildings and commercial spaces, announced a trading update following the Company’s year end of 31 January 2023. The Group said has been progressing its objective to build a high growth SaaS business with strong recurring revenues, results for the full year ending 31 January 2023 are either in line or ahead of market expectations.
Comment: Although many companies say they have cracked the SaaS model, not that many actually do, and become dependable stock market plays. Smartspace looks to have achieved this, although to date that stock market has yet to fully wake up to the company’s performance.
First Class Metals (FCM), the UK metals exploration company seeking large scale metal discoveries across its extensive Canadian Schreiber-Hemlo & Sunbeam land holding provided an update on the Sunbeam past producing high grade gold mine. The company said that once key reviews are completed it will allow an acceleration and focus to the field work when the Spring thaw commences.
Comment: The pause in the rally for the shares since the start of the year is understandable since the turn of the year, given how extended it was. But it looks as though investors will not have to wait too long for fresh drivers when the Spring thaw arrives.
Great Western Mining (GWMO) which is exploring in Nevada, provided an activity update. The company said that with the net proceeds from the recent placing, no debt and a tax credit received, it is well-placed to progress its production project and our exploration objectives this spring.
Comment: “No debt” appears to be the magic phrase here, as we wait to see what the new GWMO can deliver.
East Imperial (EISB), the purveyor of mixers, announced a pre-close trading update for the year ending 31 December 2022, ahead of reporting its preliminary results in April 2023. The Group said it continued to deliver strong top line growth, with 2022 revenue increasing 15.5% year on year to approximately £3.2m, in line with expectations for the year. Revenues were driven by increased sales across all markets, with approximately 230,000 cases sold and greater revenue per unit.
Comment: The upbeat update suggests that the group has indeed turned the corner, and is starting to gain a foothold in key markets. All now depends on the bottom line to garner investor confidence, and a share price rebound.
e-therapeutics (ETX), a company integrating computational power and biological data to discover life-transforming RNAi medicines, announced the filing of four new patent applications to protect innovation around novel gene targets, associated disease relevant biology as well as proprietary siRNA stabilisation chemistries.
Comment: It is a shame that perhaps only Mensa members appreciate the work that ETX is doing. The filing of not one but four patent applications, is quite an achievement. It may be enough for the company’s shares to start playing catch up with some of its life sciences sector peers, who have had a good start to 2023.
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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
