Banco Santander SA (BNC) is exploring options for its UK business, including leaving the UK market entirely, the Financial Times reported on Saturday, citing “people familiar with the matter”. The Madrid-based lender first entered the UK two decades ago by acquiring retail bank Abbey National.
Santander enjoys lower returns from its ring-fenced UK bank compared to other markets, the FT said. Additionally, in November it had to set aside £295 million to cover potential costs of a UK court ruling about possible mis-selling of car loans.
Comment: Although banking shares have been rising vertically of late – helped by them not passing on killer interest rates to savers, and nothing been done about this, it seems that Santander is not part of the cartel. While no one feels sorry for a bank, those who enjoy Labour’s tax for growth initiative going pear shaped, will enjoy the prospect of a major sector player leaving the country, along with so many of our millionaires.
Predator Oil & Gas Holdings (PRD), the Jersey-based Oil and Gas Company with near-term hydrocarbon operations and production activities focussed on Morocco and Trinidad is pleased to announce that civil engineering work, to improve access roads and prepare the MOU-5 well pad, has commenced on its Guercif licence onshore Morocco at the MOU-5 drill site. Presently it is forecast that MOU-5 drilling operations are on track to commence on or about 25 February 2025. PRD said it was very pleased to have put together this new fully-funded drilling campaign efficiently and within budget guidance to allow it to drill MOU-5, as currently forecast, next month.
Comment: It is all about MOU-5 currently for PRD, something which could and should be transformational for the company. Given that the shares remain relatively low in the range, and we are just weeks away from the start of the big reveal next month, it would not be wrong to expect a re-rate ahead of the campaign.
CleanTech Lithium (CTL), an exploration and development company advancing sustainable lithium projects in Chile, announced an updated resource estimate for its Laguna Verde project that has been included by the Chile Government as one of the six salar systems to be prioritised for development. CTL said the updated JORC-compliant resource estimate for the Laguna Verde project confirms a robust and significant resource of 1.63 million tonnes of Lithium Carbonate Equivalent (LCE), with 0.81 million tonnes in the Measured and Indicated category at an average grade of 178 mg/l lithium. Now with greater confidence in the resource, this comprehensive evaluation will form the basis for the Pre-Feasibility Study, scheduled for end of this quarter. This positions Laguna Verde as a highly promising direct lithium extraction (DLE) based project in the lithium brine sector and as a contributor to Chile’s future as a leading lithium producer for the global EV and battery market.
Comment: While the market still has CTL in a kind of “wait and see” cubby hole, it can be seen that operationally it continues to advance at pace. All the while it is clear that the company is very much a favourite child in terms of its place as a future lithium producer in Chile.
Powerhouse (PHE), a company pioneering integrated technology that converts non-recyclable waste into low carbon energy, announced that it has agreed to collaborate with Avioxx Ltd (www.avioxx.com) to integrate PHE’s technology for its pilot scale facility to produce 200 tonnes per annum of Sustainable Aviation Fuel. Avioxx, based in London and Cheshire, has developed a patented process to produce SAF from non-recyclable wastes.
Comment: We have been here before as far as PHE is concerned, many times before. A big tie up with a big counterparty and an apparently big story. We have also been treated to the apparent big validation of PHE’s water into wine technology, and of course, an open timeline to revenue and how much they might be. But at least we are heading in the right direction.
OptiBiotix Health (OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skincare, announces the launch of multiple SlimBiome® containing products under OptiBiotix’s GoFigure® brand on Amazon India. OPTI said that launching meal replacement and flavoured shots on Amazon India is part of a planned strategy to invest in high growth markets and increase final product sales to customers through ecommerce channels. This multichannel approach complements our core business-to-business activities by raising the awareness of SlimBiome® containing products across multiple channels and partners.
Comment: Full marks for launching on Amazon India, with its 40% fat persons count. But perhaps we should be aware that everyone and their obese mother has gone for / is going for the Ozempic, Wegovy, Mounjaro, rather than flavoured shots, which sound as quaint as Weight Watcher in comparison. But at least today’s news is a decent distraction from the recent Probiotix requisition debacle, and the concern that OPTI may need to raise fresh cash.
Pri0r1ty Intel Grp (PR1) Holding(s) in Company. Mr Rupert Labrum+ Mrs Susan Labrum go from 3.4% to 2.3% on the shareholder register.
Comment: Given that PR1 has only just come to market, with significant fanfare, and with an a la mode business model, it seems a little harsh for Rupert and Susan to lighten the load on their holding. This is especially the case as one would expect news regarding corporate contract wins sooner rather than later.
ChallengerX (AQUIS: CXS) said it is in active negotiations with the owners of Nyce International Limited and Virya VC Limited with the aim to acquire their entire issued share capital. In addition, as part of this transaction, ChallengerX intends to enter into a perpetual, irrevocable licensing agreement in relation to an instance of Reelsoft AB’s Vision RGS (Remote Gaming Server) and Game Aggregation Platform. It is not expected that the Potential Acquisitions would constitute a Reverse Takeover.
Comment: The key here, apart from CXS getting a decent deal under its belt, is that we are not looking at a reverse takeover, something which means that CXS could be looking at a chunky / meaningful breakthrough for the company, especially Nyce. By the way, the RTO rules are one of the biggest blocks to dealmaking, and another thing which should be scrapped as they are a straightjacket on M&A.
Kodal Minerals (KOD), the mineral exploration and development company, announced that at its flagship Bougouni Lithium Project in Southern Mali the power generation plant is now operational and this “Power-On” milestone paves the way for full commissioning of the Stage 1 Dense Media Separation processing plant in the coming weeks. KOD said achieving this crucial “Power-On” milestone is a critical step for Kodal and its aim of being one of the first Lithium producers in West Africa and the first London-listed lithium producer.
Premier African Minerals (PREM) confirmed that Canmax Technologies Co., Ltd have reaffirmed that their intention at this time is to work in alignment with Premier to ensure the completion of the commissioning and optimisation of both the primary flotation plant and secondary flotation plant to achieve the targeted grade and recovery at the Zulu Lithium and Tantalum Project. PREM said it remains confident that Premier will complete the optimisation and final commissioning of the spodumene float circuit at Zulu. The extensive additional test work completed in the latter part of 2024 and the purchase of additional float cells to be installed at Zulu will support this.
Comment: Although it probably would have been cheaper and easier for PREM to build the pyramids than develop Zulu, it is interesting that the company is flagging light at the end of the tunnel yet again, and after another fundraise.
Panther Metals (PALM) the company focused on mineral exploration in Canada, announced the completion of a conditional placing, at a price of 50 pence gross proceeds of £455,000. PALM said the funds raised will enable the Company to progress the very prospective Dotted Lake Project in the best interest of shareholders following receipt of the remaining drill core and soil sample assays.
Comment: The last fundraise via a rights issue was in late summer, so perhaps one was due to start 2025. The key here is that shareholders see decent progress, and on a project that is significant, an issue that many explorers are currently struggling with.
First Class Metals (FCM) the UK listed company focused on the discovery of economic metal deposits across its exploration properties in Ontario, Canada provided an exploration update for the work conducted in 2024 field season. FCM said the advance of North Hemlo and Sunbeam will be the focus of this year’s field work. With assured funding secured from the Seventy Ninth Group and an enhanced understanding of the geology at our flagship properties, FCM is poised to launch a comprehensive and targeted exploration programme on these key assets in 2025. This robust foundation also enables it to advance satellite projects like Esa and Kerrs, driving its growth and unlocking their full potential.
Comment: The fact that the company has assured funding should mean that the shares allow themselves to rebound off recent support, especially FCM now has the backing to drive North Hemlo and Sunbeam forward.
Strategic Minerals (SML), a producing mineral company, is pleased to provide the following update on the Company’s ore sales at the Cobre magnetite operation in New Mexico, USA for the quarter ended 31 December 2024 and the full year 2024. Full year revenue US$4.7m (Full year 2023: US$1.5m) and exceeding guidance. Group cash balance of US$0.62m as at 31 December 2024 (US$0.10m as at 31 December 2023).
Comment: While SML is certainly producing, and doing more all the time, the cash balance gives the impression that the company is still somewhat running just to stand still.
Technology Minerals (TM1), the first UK listed company focused on creating a sustainable circular economy for battery metals, announced that its 48.35% owned battery recycling business, Recyclus Group Ltd , has completed a programme to recycle fire-damaged lithium-ion battery packs from an electric vehicle original equipment manufacturer.
Comment: Although the company has been described as a “slam dunk sell”, today’s RNS surprisingly enough does not given this impression.
GSTechnologies (GST), the fintech company, announced that it has conditionally raised £500,000 at a price of 1.90 pence per share pursuant to its offer to its existing retail shareholders. Due to exceptional demand, the Retail Offer was significantly oversubscribed in relation to its original retail target raise of £250,000. This has still resulted in participants being scaled back from their original amounts requested.
Comment: “Oversubscribed” / “scaled back”: we must be in a bull market.
Getech (GTC), a locator of subsurface resources, updated for the financial year ended 31 December 2024. The Company expects to report a 17% increase in revenues to £4.7m (2023: £4.0m). The rise in sales came from the retained client base and new services income from the growing portfolio of work supporting sub-surface exploration for materials connected to the Energy Transition such as natural or white hydrogen, battery materials or geothermal sources of energy.
Comment: Given the depth of ongoing weak share price performance, it will probably take rather more that a 17% revenue rise to change the trend from bear to bull.
Reach (RCH) revealed a Q4 24 Trading update and full year guidance. It said trading in Q4 was strong. As a result, it now expects to deliver results ahead of current market expectations for the full year. The Company is scheduled to report full year results on 4 March 2025.
Comment: Short and sweet is the RNS from RCH today, and the prospect of a decent ride ahead of results in 6 weeks.
Further to an ongoing review by the board of directors of Enteq (NTQ) of the various strategic options available to the Company and the trading update made by the Company on 10 January 2025, the Board has unanimously concluded that it would be appropriate to investigate the sale of the Company and therefore has now decided to commence a “Formal Sale Process” for the Company. The Company’s current cash balances as at the date of this announcement total approximately US$0.95 million and the Company has no debt.
Comment: Given the 30% initial rebound for the shares on the latest news, it may be the case that more listed companies should just hang up the for sale sign, especially since 30% or more is the typical discount in valuation listed companies have these days, just for being listed.
Further to its announcement of 28 October 2024, and as a result of laboratory check analysis of drill samples, Tertiary Minerals (TYM) announced the discovery of economically significant silver and cobalt mineralisation associated with previously announced copper-zinc mineralisation at its Mushima North Project in Zambia.
Comment: Although historically positive RNS announcements such as today’s are merely waving the flag for a subsequent fundraise, we remain in eternal hope that this will not need to be the case too promptly on this occasion.
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.
