This post was written by Zak Mir, a Technical Analyst, Events Host, Presenter, CEO Interviewer and established Market Commentator.
Arrow Exploration (AXL), the operator with a portfolio of assets across key Colombian hydrocarbon basins, provided an update on the drilling of Carrizales Norte 1 (CN-1). The company said the CN-1 discovery is an extremely important and material event for Arrow and is further evidence of the potential of the Tapir block. All primary targets in the well have clear indications of oil pay and have the potential to greatly increase the company’s reserves and production. Currently there are no reserves booked at the Carrizales Norte field. Apart from the exceptional technical results, the CN-1 well was drilled on time and under budget. Arrow plans to test several zones over the following weeks and then make a decision on which zone to bring on production.
Comment: May 2023 should be the month when shares of AXL deliver their big breakout, and today’s news from CN-1 is well timed to remind the market that this is likely to be the case.
Lexington Gold (LEX), the gold exploration and development company, announced that, on 13 May 2023, it entered into, via its wholly owned recently incorporated subsidiary, conditional share subscription and loan agreements to acquire 76 per cent. of White Rivers Exploration Proprietary Limited. The company said this proposed acquisition of WRE, with its substantial portfolio of gold assets, represents a tremendous opportunity for Lexington Gold. The projects are all considered shallow level in terms of gold mining in South Africa.
Comment: Given the strength of the share price of LEX of late, today’s announcement should be takes as just what the doctor ordered for the company in terms of building up not only its portfolio, but its value amongst investors.
Galileo Resources (GLR) provided an update on Airborne Gravity and Advanced Soil Geochemistry surveys commencing over the Company’s 100% held licences PL253/2018, PL039/2018 and PL040/2018 in the Kalahari Copper Belt (KCB) in western Botswana. The company said the Kalahari Copper Belt is receiving much global attention, with new entrants making positive inroads towards discovery, in many cases providing new thinking on mineralisation controls and trends. The work that it and Sandfire is carrying out is consistent with this new thinking and licence PL253/2018 in particular appears very prospective.
First Tin (1SN), a tin development company, announced that all confirmatory drilling at its Taronga tin project in Australia is now complete and that the results from the programme confirm both the widths and grades of mineralisation previously reported by Newmont between 1979 and 1982. The company said it is pleased with these drilling results. It can now confidently use the significant amount of historical Newmont data to provide an updated resource estimate. It expects to undertake this updated estimate in the coming months.
Comment: While the market has perhaps wrongly judged solely in terms of the tin price in the recent past, today’s update underlines the way the company is keen to prove up and expand on its resource base.
Union Jack Oil (UJO), a UK focused onshore hydrocarbon production, development and exploration company, announced its audited results for the year ended 31 December 2022. The company said it is in sound financial health with a robust balance sheet, continues to be free of debt and has significant cash reserves with no requirement to raise capital for its planned operations for at least the next 12 months.
Comment: Given the magic fundamental phrase of being debt free, and flagging the lack of any capital raise for at least 12 months, it is surprising that shares of UJO are not trading rather higher than current levels.
Angus Energy (ANGS) announce that, as planned, the second compressor at Saltfleetby Field was commissioned in dual compressor mode on 10th May and the 3 producing wells in the field, B2, A4 and the new B7T well, have been flowing gas to the National Grid at the combined average daily rate of 9.5 mmscfd since then. The company said the achievement of it goal of putting 3 wells in production through the Saltfleetby facility is very satisfying and represents an important milestone for the company as it positions for strong cash flow generation and growth in the future.
Comment: Although shares of ANGS have been taking up the slack of the last fundraise, the progress on the ground as illustrated today, suggests that the bull run of last summer is due to be repeated.
Chill Brands Group (CHLL), the international consumer packaged goods company, announced that it has allotted and issued 1,500,000 new ordinary shares of £0.01 each at a price of £0.04 per New Share. The New Shares have been issued to a service provider in settlement of an invoice for investor relations and connected services. The company said the issue of the New Shares will ensure the interests of the company’s shareholders are supported by the service provider, who will continue to promote Chill Brands to retail, and high-net-worth investors for a period of two years.
Comment: Cause and effect in the PR/IR is always something of a moot point, as it is not always clear what the trigger or the source of recovery in a stock necessarily is or was. Shares of CHLL have been a charting buy since early January as sentiment towards the company reached capitulation levels. It will be interesting to see how much more progress the service provider can achieve here.
Mirriad (MIRI), the in-content advertising company, announced it has renewed a three-year agreement with Univision, the Spanish language media and content supplier. MIRI said it was pleased to extend its partnership with Univision. Virtual product placement represents the future of advertising, delivering relevant in-content advertising experiences in near-real time and at scale. With Univision, those benefits give brands new ways to reach key audiences while increasing media spend on diverse content.
Comment: The $64,000 question at MIRI is whether today’s news is already in the price? Or indeed, it may not make a difference either way as far as the latest rebound in the shares.
GreenRoc Mining (GROC), a company focused on the development of critical mineral projects in Greenland, announced that it has awarded the contract to undertake a formal PEA for its Amitsoq Graphite Project to SLR Consulting Limited. GROC also announced that it has established a wholly owned Greenlandic registered subsidiary, Greenland Graphite a/s, to which the two graphite mineral exploration licences (2013-06 and 2022-03) will be transferred, pending approval by the Greenland Government.
Comment: This month to date has already witnessed a decent recovery in GROC shares, something which suggests that the market may feel that the company has finally got its fundamental ducks in a row.
Ananda (ANA) announced that SP Angel Corporate Finance LLP has been appointed as the Company’s AQSE Corporate Adviser and sole Broker, with immediate effect. SP Angel has a dedicated in-house healthcare research team and will release an Initiation Research Report on the Company in the coming weeks. As SP Angel acts as a NOMAD it would be able to support Ananda with a smooth transition to AIM at the appropriate time. ANA said its ambition to be a provider of cannabis-based medicines places it firmly in the healthcare sector. It believes that working with the dedicated, experienced, and respected healthcare research and capital markets team at SP Angel will help it refine its story.
Comment: We have been treated to a fundamentally significant RNS from Ananda today, something which not only underpins the credibility and serious intentions of the company going forward, but also shows how it has third party validation from its new corporate advisor and broker. The AIM angle is also something which investors will happily latch onto.
IOG (IOG) provided a further update on drilling and production operations at the Blythe field. The company said the IOG, Petrofac and Shelf teams have worked extremely hard to isolate the kick/loss zone safely and successfully on Blythe H2. It is pleased to say that the 6″ hole section has so far been drilled efficiently and it is encouraging that the top reservoir has been encountered within expectations. The teams are working tirelessly to ensure the remainder of the well as well as the hook up and commissioning of the new well into the Saturn Banks Pipeline system is delivered as efficiently as possible.
Comment: IOG’s latest announcement shows a company continuing to regroup after share price trauma at the beginning of this year. It may at least be enough to allow an intermediate recovery from recent lows near 4p.
Caracal Gold (GCAT) the East African gold producer, provided a corporate update and progress report on its operations and exploration activities for the quarter ended 31 March 2023. The company said the discovery and processing of the High Grade zone on the Kilimapesa Hill has assisted greatly in March and the gold price has also been kind to it during March – the production numbers for the quarter are down but considering the production only recommenced on 5 March it is well positioned for the Q2 period.
Comment: GCAT is clearly working hard to make sure the rest of 2023 sees a positive outcome both in terms of production, and accordingly a share price recovery. Ideally, this would be on the right side of 1p.
Critical Metals (CRTM), a mining investment company, provided a comprehensive operational update on activities at the Company’s Molulu copper/cobalt asset in the Democratic Republic of Congo. The company said it was delighted to be able to provide this operational update on the ongoing activities at Molulu. Since it announced that Molulu would be commencing production in January 2023, the team on the ground has been working tirelessly to ensure the company achieves its operational goals in a timely manner. It is encouraged by the latest grade samples above 8.3%, confirming the potential high profitability of the project.
Comment: Shares of CRTM have been in a holding pattern for much of 2023. One would expect that today’s announcement, and the ones that follow will end this impasse.
Vast Resources (VAST), the AIM-listed mining company, is pleased to announce an update in relation to the Asset Backed Debt facility from A&T Investments SARL as announced on 16 May 2022, the debt owed to Mercuria Energy Trading SA relating to Tranche A of the Prepayment Agreement announced on 21 March 2018 and the anticipated settlement of the historic claims in Zimbabwe. The company said CEO Andrew Prelea, is currently in Zimbabwe as the company finalises the recovery of the historic parcel of 129,400 rough diamonds held in safe custody at the Reserve Bank of Zimbabwe pursuant to the High Court Order in the company’s favour.
Comment: Shareholders of Vast will be hoping that the CEOs current mission in Zimbabwe will be the trigger for a fresh push to the upside for the stock, through 0.7p and beyond.
Conroy Gold and Natural Resources (CGNR), the gold exploration and development company focused on Ireland and Finland, announced assay results from a trenching programme at its Mines Royal option area in County Armagh. The results included a gold intersection of 1.0m at 64.3g/t gold. The company said it is highly encouraging to confirm the bedrock source of the high grade gold mineralisation and to identify gold in quartz breccia over thirty five metres away in the same target area.
Comment: Shares of CGNR have perked up in recent months, but it will require more updates like today’s to remind the market how well the company is placed.
Zakmir.com is a purely journalistic website – Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.
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