Perhaps as today’s myriad of position and constructive RNS updates shows, given the lay of the land / government, it is up to small cap companies to deliver their own success through determination as well as luck.
It is a shame that this success has to be achieved despite the current stock market red tape and cost, that listed companies have to overcome in order to get to the “Promised Land”.
Vinanz Limited (BTC), the publicly listed Bitcoin mining company with expanding US and Canadian Bitcoin mining operations, announce that its entire issued ordinary share capital will today be admitted to the Official List of the FCA and to trading on the main market for listed securities of the London Stock Exchange. BTC said joining the LSE’s main market with the ticker BTC is a major milestone for Vinanz and provides us with an incredible platform for growth. The LSE is one of the top stock exchanges in the world and being listed here opens up trading of Vinanz’s shares to a wider audience, something we see as necessary for future growth.
Comment: One can only imagine how many hoops, roadblocks, bureaucracy and general red tape breaking it has taken to list on one of the top exchanges in the world. We look forward to proper liquidity from an international base, and the continuation of what has already been a stellar share price run.
Genflow Biosciences (GENF): stakebuilding up to 6% from 5%, as Rickmansworth’s finest investor nibbles more stock.
Zenith Energy (ZEN), the listed international energy production and development company, announce that it has completed a private placement with an institution in the United Kingdom, a private placement in Norway with institutional investors. The Company has also issued broker shares to Oak Securities in a raise of an aggregate total amount of approximately £2,310,800. The proceeds of the Placements will be used to fund the Company’s publicly announced international arbitrations against the Republic of Tunisia and ETAP, with specific attention being deployed towards enforcement of the recent ICC-1 Arbitration award, as well as for general working capital purposes.
Comment: ZEN takes advantage of its recent massive share price rise with a fundraise to take its arbitration forward. It is also noticeable that 2024’s star small cap broker Oak Securities is in the frame again supporting the cause.
Gem Resources (GEMR), the owner and operator of the Gravelotte Emerald Mine in South Africa, announced the successful resumption of operations following the seasonal annual leave shutdown, as outlined in its Operational Updated released on 11 December 2024. GEMR said Gem Resources Plc remains focused on building a significant emerald stockpile in preparation for sale at auction. The timing of the auction will depend on the volume and quality of material mine and stockpiled, as well as the annual auction schedule managed by Bonas Group. Bonas typically conducts one or two combined auctions per year for independent emerald producers of GEMR’s scale, ensuring adequate market interest and participation.
Comment: The market has been hard on GEMR, something which should not have been the case, merely given the company’s ownership of the flagship Gravelotte mine. Nevertheless, once sales are under its belt, this downbeat phase should end quickly.
Avacta Therapeutics (AVCT), a life sciences company developing next generation peptide drug conjugates (PDC) targeting powerful anti-tumor payloads directly to the tumor, announced the appointment of Brian Hahn as Chief Financial Officer (CFO). He was previously CFO and Senior Vice President of GlycoMimetics, Inc., where he led the company’s 2014 initial public offering (IPO) on Nasdaq.
Comment: The arrival of a CFO, and the Nasdaq angle are just what the doctored ordered as far as AVCT are concerned. It would be hoped that this news could be the catalyst for a fresh rebound in the stock from the 40p zone.
Thor Explorations (THX) provide its fourth quarter and full year 2024 operational update for the Segilola Gold mine, located in Nigeria, and for the Company’s mineral exploration properties located in Nigeria and Senegal, for the three months to December 31, 2024 as well as full year operational highlights. Gold sales in Q4 2024 of 24,936 oz at an average realized price of US$2,497 resulting in unaudited revenue of approximately $62 million. FY 2025 production guidance range set at 85,000 to 95,000 oz of gold. FY 2025 AISC guidance range set at $800 to $1,000 / oz.
Comment: In the small cap area of the London stock market it is difficult to think of a better play than THX has already been and should continue to be, especially given the geographies that the company is focused on.
Jubilee (JLP), a diversified metals producer with operations in South Africa and Zambia, today publishes its unaudited operational and project update for the half year ended 31 December 2024 (H1 FY2025). JLP said while unexpected setbacks manly outside of our control do provide hurdles to a smooth growth path in Zambia, we have successfully navigated these challenges and I remain confident in our ability to bringing full value to the investment made into the expansion of our operating and processing footprint. In South Africa, the team continues to deliver an exceptional performance, and we are well on track to achieve and exceed our chrome guidance of 1.65 million tonnes of chrome concentrate for FY2025,
Comment: It is easy to maintain that the market has treated JLP even harder than it has been on itself in its RNS updates. Even so, one would suspect that the South African progress will soon improve sentiment across the board.
Sulnox (AQSE:SNOX) announced the signing of a significant agreement with Eastern Pacific Shipping Pte Ltd. This milestone Agreement encompasses both investment into SulNOx and a major new product supply contract for its SulNOxEcoTM fuel conditioner. Under the Agreement, EPS will adopt SulNOxEco on a minimum of 30 vessels for a minimum of 18 months use per vessel. EPS will also provide information in relation to the results of the evaluation.
Comment: Shares of SNOX have been one of the few to rise nearly vertically on Aquis in recent months. It would appear that there is still plenty of fundamental momentum to ensure that this state of affairs continues.
Pulsar Helium Inc. (PLSR), a helium project development company, announced the successful completion of the deepening operation for the Jetstream #1 appraisal well, that previously flowed up to 14.5% helium concentration, at its flagship Topaz Project in Minnesota, USA. The drilling operation reached Total Depth (TD) of 5,100 feet (1,555 metres) on January 11th, 2025, successfully penetrating the entire interpreted helium-bearing reservoir and beyond. PLSR said as we move forward with Jetstream #2 and additional testing, we are increasingly optimistic about the project’s ability to contribute significantly to the global helium supply chain. This success not only validates our exploration strategy but also positions Pulsar Helium as a key player in addressing the critical demand for helium in various high-tech industries.
Comment: On the basis of the latest drilling one should already take the view that PLSR is “over the line” and the valuation should return to the best levels seen last year in the wake of the initial discovery.
Orosur Mining (OMI), announced an update on the progress of exploration activities at the Company’s flagship Anzá Project in Colombia. OMI said drilling at Pepas continues to develop an exciting story. It has been less than six weeks and yet we have achieved a huge amount, with seven holes drilled, all of which have returned exceptional intersections. We will continue expanding Pepas, but attention now also turns northward where tantalising surface mapping is attracting our attention.
Comment: Recently financed, and with its flagship Anzá on a roll, one would expect a significant re-rate in the stock, helped by the prospect of further discoveries.
EnergyPathways (EPP), an energy transition company developing low carbon integrated energy solutions in the UK, announce Licence Operatorship approval for Block 110/4a that includes the Company’s Marram Energy Storage Hub project (MESH) and a subsea engineering service agreement with PDi Ltd. EPP said it was delighted to announce the NSTA’s approval for the Licence Operatorship for Marram Block 110/4a which is an endorsement by Government authorities of its operating capabilities and is a necessary milestone to keep us on track towards its plans to achieve FID on MESH later this year.
Comment: For the company to get the green light from the NSTA is a coup in itself given the swivel-eyed Net Zero policy we now have in government. It is a shame that given we have less a week’s gas left in the UK, EPP is not already up and running.
Hercules Site Services (HERC), a technology enabled labour supply company for the UK infrastructure and construction sector, announced its audited results for the year ended 30 September 2024. HERC said it was delivering ahead of market expectations, with growth achieved across the Group’s Labour Supply and Civil Projects business: 28% increase in revenue, 34% increase in Adjusted EBITDA. 43% increase in Adjusted** pre-tax profit.
Comment: As stated here even before our new Chinese style government (without the money) landed, companies relying on the public sector gravy train. As we can see now from HERC’s latest performance, this concept is even more of a no brainer than Angela Rayner.
Guardian Metal Resources (GMET), a strategic mineral exploration and development company focused on tungsten in Nevada, USA, announce the initial results of the industrial garnet processing study at the Company’s 100% owned flagship Pilot Mountain Project located within the prolific Walker Lake Mineral Belt in Nevada, USA.
Comment: It would appear that GMET’s discoveries are so persistent and consistent, that once it goes into production it will be at least a serious mid-tier player, and of significant USA strategic importance. All the while Power Metal (POW) has a 43% stake in the company.
Technology Minerals (TM1), the first UK listed company focused on creating a sustainable circular economy for battery metals, announce that its 48.35% owned battery recycling business, Recyclus Group Ltd, has signed an agreement to recycle lithium-ion battery packs from a global automotive company.
Comment: For a company which has been described as heading for zero, albeit from a crackpot source, signing up with a “global automotive company” is all the more impressive.
Oxford Nanopore Technologies (ONT) said its Commercial performance accelerated in the second half in-line with guidance; underlying revenue growth in the second half was approximately 34% on a constant currency basis. Full year performance in-line with guidance, with reported revenues of approximately £183 million, underlying revenue growth of approximately 23% on a constant currency basis and gross margin slightly above guidance of approximately 57%. Medium-term guidance reaffirmed, with improving top line momentum, further gross margin expansion and ongoing cost discipline to deliver adjusted EBITDA breakeven in 2027.
Comment: For the UK to even begin to catch up with the new economy in the USA, companies such as ONT really need to flourish, and we need another dozen of them.
Filtronic (FTC), the designer and manufacturer of products for the aerospace, defence, space and telecoms infrastructure markets, announced that order intake for delivery in the current financial year is at a higher rate than anticipated. Consequently, the Board now expects to deliver stronger results for the full year than the recently upgraded market expectations.
Comment: A stock that should have been on every list of top picks for 2025, just on the SpaceX angle. But as the company has underlined today, it is firing on all cylinders.
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.
