BP (BP.) reported weaker fourth-quarter profit, but maintained its USD1.75 billion quarterly share buyback pace, ahead of a review of “elements of our financial guidance” later this month. BP reported pretax replacement cost profit of USD764 million for the final-quarter, tumbling 79% from USD3.57 billion a year prior.
Underlying RC profit fell 61% to USD1.17 billion from USD2.99 billion. For the full-year, pretax RC profit declined 59% to USD11.79 billion from USD28.58 billion and underlying RC profit fell 36% to USD8.92 billion from USD13.84 billion. Fourth-quarter revenue was down 8.6% year-on-year to USD48.09 billion from USD52.59 billion. (Alliance News)
Comment: With everything to Just Stop Oil to the even more mad Net Zero brigade providing headwinds, it is surprising that BP has not just volunteered to close up shop. In such circumstances the share buyback continues to be the safest thing to do instead.
Heathrow airport said it has recorded the busiest January in its history. More than 6.3 million passengers travelled through the west London airport’s four terminals last month. That is up more than 5% from 6.0 million in January 2024. (Alliance News).
Comment: A good reminder today that Heathrow is fine as is, despite the Chancellor’s desperate, unnecessary, too late, horrifically expensive, third runway proposal.
CleanTech Lithium (CTL), an exploration and development company advancing lithium projects in Chile for the clean energy transition, announced the results of yesterday’s Placing. The Placing has conditionally raised gross proceeds of £2.4 million through the issue of 15,000,000 new ordinary shares at an Issue Price of 16 pence per share. CTL said the new funds will be focused on progressing toward the award of a CEOL at the Laguna Verde project, complete the Laguna Verde PFS, and on producing battery-grade lithium carbonate for potential strategic partners as well as maintaining our active engagement with indigenous communities whilst we pursue the dual listing in Australia in the coming weeks.
Comment: What is encouraging from CTL is the way that it has been determined to get on with the job in advancing Chile, and not shy to raise funds in order to do so. Ideally, a quick result in terms of the dual listing in Australia now manifests itself.
BSF Enterprise (BSFA), an innovator in tissue-engineered materials, has made applications for the 312,500 ordinary shares issued to investment podcast firm PR Roast to be admitted to the Official List of the FCA and to trading on the Main Market of the London Stock Exchange. It is expected that admission will become effective and that dealings in the Shares will commence at 8.00 a.m. on or around 12 February 2025.
Comment: Shares of BSFA were down 76.8% in 2024. But hopefully the 15.8% rebound so far this year is a sign of a potential new recovery, especially after last month’s MOU with Sartorious.
Kodal Minerals (KOD), the mineral exploration and development company, announced that first spodumene concentrate has been produced at its flagship, fully-funded Bougouni Lithium Project in Southern Mali and provided an update on progress of the Project. KOD said the operational focus over the coming weeks will be the finalisation of commissioning and stress testing of the DMS processing plant as we ramp up to achieve nameplate capacity and steady state production. We look forward to confirming our first shipment of lithium spodumene concentrate to Hainan in China by the end of this quarter.
Comment: The Chinese must be delighted that all their funding at Bougouni is set to bear fruit, and in a straightforward way. It is interesting that KOD has beaten many of its peers in this respect in terms of production.
Rome Resources (RMR), the DRC-focused tin explorer, provides an operational update in light of the ongoing security developments in the eastern Democratic Republic of Congo. Drilling operations at the Company’s Bisie North site continues uninterrupted, with transport to and from the site directly supported by BAC Helicopters. RMR said it remains focused on advancing exploration activities and expects to announce further assay results from Bisie North within the next 10 days, specifically results from the northernmost MADD018 drill hole at Mont Agoma where over 100m of visible copper was identified.
Comment: The market has been rather harsh on RMR, with the perceived security issues in DRC not helping either. That said, today’s assurances and further imminent assay results should allow the shares to build on their recent tentative recovery.
Power Metal Resources (POW), the London listed exploration company with a global project portfolio, announces an intended partial disposal of its stake in Guardian Metal Resources PLC. Power Metal has reached an agreement in principle with UCAM Ltd wherein it is intended that UCAM Ltd will purchase from Power Metal 29,758,334 shares in GMET, and warrants granted over 986,352 ordinary shares in GMET of £0.01 each, for a total cash consideration of £9,225,083.91 before costs.
Comment: One can be sure that POW has not partially divested of its significant and successful stake in GMET, one of the best performing small caps in its space. However, raising cash equivalent to around half its market cap is nothing to be sniffed at and will mean that the balance sheet is healthy for ongoing campaigns.
Strip Tinning Holdings (STG), a supplier of specialist connection systems to the automotive sector, is pleased to confirm that its customer, a leading German Tier 1 supplier of automotive motion technology to the US based autonomous vehicle programme, has now placed an order for the C-samples as planned. The US vehicle manufacturer is wholly owned by one of the world’s largest corporations and is currently running trials on public roads in three US cities. The order, valued at $780,000, covers the supply of the Cell Contact System (CCS) for the vehicle’s battery pack modules. STG said “We are pleased to have reached this next important milestone as we, our customer, and the vehicle OEM prepare for the start of production in 2026.”
Comment: Given that shares of STG have of late dipped to fresh lows, the latest announcement of a significant order for the company is as welcome as it is timely.
Oracle Power (ORCP), an international project developer, updated on the Mining Lease application at the Northern Zone Intrusive Hosted Gold Project, which was announced on 10 December 2024. ORCP said this is good news for upgrading the tenement status to a Mining Lease. We have embarked on a prescriptive process with the Government to get the tenement upgraded from a Prospecting Licence. We have appointed lawyers to assist with NTA negotiations where necessary, and we will provide material updates on the tenement tenure when available.
Comment: Although some in the market may be looking over their shoulder in terms of ORCP’s intentions on funding, the share have rebounded of late, and Northern Zone continues to prove its worth.
Rockfire Resources (ROCK), the base metal, critical mineral and precious metal exploration company, announce that its on-going portable X-Ray Florescence soil survey has found a geochemical anomaly comparable to the surface signature at the main resource area at its Molaoi zinc deposit in Greece. Being comparable in size to the existing resource provides a clear target to potentially double the JORC resources at Molaoi. Further targets are expected to be defined as the pXRF survey continues.
Comment: Today’s announcement from ROCK should soothe nerves after the rather chunky December fundraise, especially if further news in the same vein is forthcoming sooner rather than later.
SpaceandPeople (SAL) the retail, promotional and brand experience specialist, is pleased to announce a positive pre-close trading update for the year ended 31 December 2024. The Board reported that the strong sales performance achieved across the business in the first half of FY24 continued during the second half, with total unaudited revenue for FY24 being above market expectations, at approximately £6.8 million (2023: £5.8 million). All departments performed well, with UK Brand Experience and Rock Up and Pop Up (our unique end-to-end pop-up retail solution) showing particularly strong growth.
Comment: Ironically, despite the area it is involved in, SAL remains under the radar to most small cap afficionados, something which may be addressed in the wake of its FY announcement due in April.
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.
