CleanTech Lithium (CTL), an exploration and development company, advancing sustainable lithium projects in Chile, announced the results of a recently completed Scoping Study for the Francisco Basin Project, which confirmed the project’s outstanding economics, potential for future resource expansion and strong ESG credentials.
The company said the Scoping Study provides added confidence in the robust economics of our second project, Francisco Basin, based on low operating and capital costs, with a post-tax NPV of $1.1 billion and IRR of 43.5%, and a payback period of 2 years and 7 months. The study further advances the process and technical design concept for the project, with strong ESG principles incorporated at each stage.
Comment: It rather beggars belief that shares of CTL remain anywhere below their February 90p peak given the progress the company has made on proving up the economics of Francisco Basin today, and proved that fears over Chilean mining sector legislation are misplaced.
LifeSafe (LIFS), a fire safety technology business, reported its unaudited Interim Results for the six months ended 30 June 2023. The company said it was pleased to announce another positive set of financial results that reflect the continued growth and development of its business. It said that it was delighted that it announced its first major partnership in the development of its industrial strategy with Wormald in Australia. This milestone is a long way ahead of its expectations even though it has been working and testing with Wormald for over 18 months.
Comment: It was always the case that LIFS was going to lay the foundation of its business via the consumer area, and then turbo charge it via an industrial strategy. The merit of this plan has clearly panned out as the company looks set to be EBITDA positive at the full year, given the strength at the interim stage. This state of affairs should finally be appreciated in terms of the stock market and the share price.
Newmark Security (NWT) reported finals to April 2023 showing a 6.1% increase in Revenue to £20.3m with a satisfying jump in Gross Profits Margins to 37.6%. NWT, provide electronic and physical security systems and have invested in significantly in product innovation launching its cloud platform GT Connect which increases the scalability of its services. The success is evidenced by reporting EBITDA of £1.5m compared to loss and PBT of £0.4m against a £0.8m loss. The quality of earnings is also improving with the Human Capital Management (MCM) division SaaS model’s recurring revenue increasing 133% to £2.1m. There are strong performances in Access Control and the guarding divisions, Safetell. A cost-effective retail attack-resistant screen has been relaunched for convenience stores with over £1m worth of installations to major UK retailers and a pipeline of over £2m. Cash flow is positive and working capital tightly manged so an equity funding for organic growth is not required.
Comment: As NWT move further up the tech chain its scalability and profits should improve which does not seem reflected in the £5.1m mkt cap at 54.5p.
Symphony Environmental Technologies (SYM), the global specialists in technologies that make plastic and rubber products smarter, safer and more sustainable, announced that the Republic of Yemen has commenced the enforcement of legislation that was passed in 2010 but delayed due to the civil war. The company said this is a very positive step forward for its d2w biodegradable plastic technology in one of the largest plastic producing and consuming areas in the Middle East. It builds on a continual process of change throughout the region towards plastic products that are scientifically proven to be better for the environment than ordinary plastics or other alternative materials. Plastic products made with d2w have the lowest Co2 emissions and environmental impact of all the current alternatives and we believe that the adoption of its type of low cost, non-disruptive technology will continue to build globally.
Comment: It would appear that everything comes to they who wait, and for SYM we have the kind of announcement which could be the platform for a better appreciation of the company, and the contribution it can make to the plastic waste crisis via its biodegradable plastic technology.
Boku (BOKU), a provider of global mobile payment solutions, announced unaudited interim results for the six months ended 30 June 2023. Revenues were up 26% to $38.2m in H1 (H1 2022: $30.3m) and up 32% on a constant currency basis driven by increasing transaction volumes from its major global merchants. The company said all parts of the business are performing well, and ahead of its internal budget at the time of the capital markets day earlier this year. The triple digit growth from wallets and account to account payments now means that these newer payment methods have come from next to nothing this time last year to account for nearly 20% of its revenue.
Comment: Boku is one of the rare standout performers at the smaller market cap part of the market, with the demand for its payments from global merchants an obvious driver, and underlining the way the company is in the right area at the right time.
Bushveld Minerals (BMN), the integrated primary vanadium producer and energy storage solutions provider, announced its interim results for the six months ended 30 June 2023. The company said the improved production at Vanchem, thanks to measures described in the Q2 operational update, tells it that it has a plant that is capable of reaching its full potential. It must now consolidate the improved efficiencies and achieve sustained target growth of 180mtV per month for Vanchem by the end of 2023. With incremental month-to-month improvements, it should be in a position of attaining this by the end of 2023.
Comment: It can be seen from the latest RNS from BMN that the company is seeing a positive turnaround from an operational / fundamental perspective. This makes it all the more puzzling that the recent temporary recovery in the share price has fizzled out for now.
Oxford BioDynamics, (OBD), a biotechnology company, announced that validation of its EpiSwitch Prostate Screening (PSE) test in its US clinical (CLIA-certified) laboratory is now complete, ahead of schedule. The company said there is a clear need in everyday clinical practice for a much more accurate blood test that can screen men for prostate cancer and accurately identify those at risk, while sparing those who up to now would be subject to unnecessary, expensive, and invasive procedures. It feels wholly appropriate that the early launch of the test coincides with Prostate Cancer Awareness month.
Comment: It is perhaps in the nature of those who are most vulnerable to prostate cancer that they are the least likely to get tested, or even be bothered about it. Nevertheless, OBD’s work in this area is obviously a key breakthrough.
eEnergy (EAAS), the net zero energy services provider, announced that is has secured a contract to provide onsite solar energy generation to its existing customer, Tudor Grange Academies Trust. The Total Contract Value is £3.0 million, resulting in £1.9 million revenues to eEnergy which will be recognised across FY23 and FY24. The company said eEnergy’s relationship with TGAT started with the provision of Energy Management services, including the use of eEnergy’s eAuction platform to facilitate an online marketplace with 25 energy suppliers, for their gas and electricity supply, including zero-carbon options. It was pleased to be awarded the mandate in October 2022 for the provision of LED lighting across the Trust. This latest project illustrates eEnergy’s ability to provide end to end solutions for management and provision of low carbon energy to organisations.
Comment: The Sunak U-turn on net zero notwithstanding, it is still the case that any company involved in the green gravy train is totally on the up currently and for the foreseeable future. The solid contract win for EAAS underlines this reality.
Yü Group (YU.), the independent supplier of gas and electricity, meter asset owner, and installer of smart meters to the UK corporate sector, announces its unaudited half-year results for the six months to 30 June 2023. Revenue growth of 51% to £194.9m (H1 2022: £129.2m), through continued execution of growth strategy. Adjusted EBITDA increased to £13.7m (H1 2022: £2.7m) as the Group benefits from increased net customer contribution through differentiated market offering.
Comment: Given that it is difficult to find a good headline involving smart meters, it is of course interesting to see Yu Group clean up in the corporate sector, versus the moans and groan of households. Perhaps the message for those facing the prospect of being forced to have smart meters is to buy shares in YU. on a “don’t get mad, get even” basis?
Allergy Therapeutics (AGY), the fully integrated commercial biotechnology, announced the completion of dosing of healthy volunteers in the first two cohorts in the Phase I PROTECT trial of its novel virus-like particle (VLP)-based peanut allergy vaccine candidate. Dosing of the subsequent cohorts will begin now that the approval from the external safety review committee (SRC) has been received. The company said peanut allergy is one of the most common types of food allergies. For some people, even the smallest amounts of peanuts can cause a potentially life-threatening reaction. A safe and effective short-course vaccine that provides long-term protection and a long-lasting protective immune response can bring a paradigm shift in treating peanut allergy, changing the lives of those living with the allergy.
Comment: Given the increasing prevalence of allergies of all kinds, the good work being carried out by AGY is all the more appreciated. It is perhaps amazing that even though we are well into the 21st century, a cure for peanut allergy has not been delivered. That said, one could probably say the same for baldness, obesity and wrinkles. At least we cracked Covid 19
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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.
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