Dekel Agri-Vision (DKL), the West African agriculture company, provided a January production update for its Ayenouan palm oil project in Côte d’Ivoire and an update on progress regarding the ramp-up of production of our large-scale cashew processing plant at Tiebissou, Côte d’Ivoire.
The company said High CPO prices and CPO extraction rates continue to underpin the solid financial performance of the Palm Oil Operation. March and April are typically the best FFB volume months and will be important in terms of driving H1 financial performance. The Cashew Operation is now becoming a material contributor to financial performance and it looks forward to reporting ongoing quarterly statistics for Q1 2023 onwards.
Comment: It may be worth noting that this is the first fully positive RNS statement from the company in a long time, something which may reflect how the fundamentals here are starting to align in a positive way.
Emmerson (EML), the Moroccan focused potash development company, announced the appointment of a syndicate of leading international and Moroccan banks as initial mandated lead arrangers to co-ordinate and fund dual-tranche debt financing facilities for the development of the Company’s Khemisset Potash Project in Morocco. The company said it was delighted to have received strong demand for the project financing from both lenders and ECAs, and its selection of MLAs with significant international and domestic expertise in natural resources project financing reflects the quality of the Khemisset Project.
Comment: With Emmerson one gets the feeling that the longer the market delays in appreciating the merits of the company, the greater the eventual rally in the stock will be.
Prospex Energy (PXEN), the AIM quoted investment company, announced that the Operator of the Selva Malvezzi production concession in which Prospex has a 37% working interest, has signed a gas sales agreement with BP Gas Marketing Limited. The company said the gas sales agreement with BP Gas Marketing Ltd marks a significant milestone for the Company and its joint venture partner, Po Valley as it gets closer to first gas production from the Selva field development.
Comment: A very timely announcement from Prospex, should and could be enough for the shares to break the 20p barrier.
Coro Energy (CORO), the South East Asian energy company, announced legal proceedings by the company against an Italian contractor in relation to damages following the historical cessation of production at the Bezzecca field in Italy. As previously announced, Coro re-established production at Bezzecca in November 2022. Coro said he Company views the expert’s opinion as strongly favourable to Coro’s claim and is now claiming damages of approximately Euro 300,000 for the capital and related costs of the replacement equipment and necessary cathodic protection and a further Euro 7M for consequential losses, including both lost revenue and incurred fixed costs, during the shut in period.
Comment: We look forward to Coro getting a €7m boost as a result of winning this court case. Retail investors love such binary situations.
Fulcrum Metals (FMET), a multi-commodity minerals exploration company, commenced trading on AIM, at 08.00 a.m. today, 14 February 2023 under the ticker “FMET”. The Company will have a market capitalisation of £8.725 million, following a successful total fundraise of £3.0 million at 17.5p. FMET said the net proceeds of the Placing will be used by the Group to capitalise on the potential of its multi-commodity portfolio of base, precious and energy metals, in Canada.
Comment: With a focused and experienced board, having kicked the tyres on its Canadian assets, and will a fundraise now under its belt, we look forward to FMET running with the ball over the rest of 2023.
Petro Matad (MATD), the AIM quoted Mongolian oil company, provided an operational update. The company said whilst it is pleased to see the process for special purpose certification of Block XX moving forward, it is disappointed with the pace and have made this abundantly clear to the authorities. Its recent interactions with the local authorities have given it renewed hope that it may be able to secure local land use approvals and we are pursuing these in parallel with the certification process.
Comment: Jurisdiction issues kind of go with the territory with resources companies, where it is the green / ESG lobby in developed countries, or the whim based approach elsewhere. Perhaps the fall in the MATD share price this year to date fairly reflects where the company now stands.
Kanabo Group (KNB), the patient-focused HealthTech ecosystem, provided a business update. The company said it has continued to make significant progress against its strategy of building a HealthTech ecosystem that empowers patients to take control of their health through innovative solutions and access to personalised medical treatments.
Comment: Full marks for the company’s description of itself as a “HealthTech ecosystem.” Sounds better than the NHS.
Bluejay Mining (JAY), the exploration and development company with projects in Greenland and Finland, announced an equity subscription. Proceeds from the Subscription will be used to fund a summer drilling programme at the company’s 100% owned Kangerluarsuk Lead-Zinc-Silver and Copper Project. The company said it was pleased to announce this equity Subscription with Towards Net Zero. Up to $6,000,000 has been secured in three tranches of $2,000,000 with the first $2,000,000 expected to occur next week.
Comment: The company seems to have sorted out its latest funding requirements without blinking, something which underlines the merit of the Greenland assets it is sitting on.
Rogue Baron (AQSE: SHNJ), announced that Charlie Wood, Non-Executive Director of the Company, purchased 600,000 ordinary shares in the company at an aggregate price of 0.846 pence per ordinary share on 13 February 2023. Following this purchase, Charlie Wood holds 600,000 ordinary shares in his own name (representing 0.67% of the issued share capital) and 1,100,000 ordinary shares via Orana Corporate LLP (of which he is a Partner and 25% shareholder) (representing 1.22% of the issued share capital).
Comment: It could very well be that charming Charlie Wood’s purchase here at the whisky purveyor signals a fundamental inflection point is nigh, or has indeed already been reached.
Blue Star Capital (BLU), the investing company, noted the recent announcement by Pendulum, a company incubated by Blue Star’s investee company SatoshiPay, that the Pendulum parachain has gone live on Polkadot mainnet. Pendulum announced that the Mainnet Launch is the first phase of a three phase Pendulum launch roadmap and marks a significant milestone for both the project and its community. Phase two will be the token transfer event that allows for the transfer, but not the trading, of tokens. The final phase will be the PEN listing on the Zenlink automated market maker (AMM), which will come with opportunities to earn rewards from providing liquidity. Pendulum noted that it is possible that PEN will list on a top 10 Centralised Exchange around this time.
Comment: We can assume that Blue Star are aware than hardly anyone over the age of 50 understands the significance or meaning of the Pendulum news.
Haydale, (HAYD), the global technology solutions company, is pleased to announce that it has been awarded funding of £258,547 by Innovate UK, the UK’s innovation agency, to develop imaging techniques to characterise 2D materials, including graphene, to improve the compatibility and material selection processes. The project started at the end of January and is expected to run for 42 months.
Comment: It is to be hoped that having witnessed a rather nasty decline in its shares over the past year, Haydale is able to regroup over the next 3 years plus, with the latest funding award to back its project.
Reabold Resources (RBD), the oil & gas investing company with a diversified portfolio of exploration, appraisal and development projects, is pleased to announce that it has appointed finnCap Ltd as its Joint Broker, alongside Stifel Nicolaus Europe Limited, with immediate effect. Strand Hanson Limited remains the Company’s Nominated Adviser.
Comment: Bolstering its brokerage via finnCap should be just what the doctor ordered for Reabold, as it regroups after the events of the autumn, and in the run up to the second tranche of cash from Shell following the Corallian sale.
AQRU AQSE: AQRU), an incubator specialising in opportunities in FinTech and DeFi, announced the incorporation of the London Carbon Exchange Ltd., a wholly owned subsidiary of AQRU specialising in opportunities in the underserved voluntary carbon market LCE has opened a waiting list for investors interested in using its platform once it launches in the first half of 2023. AQRU said its mission is to develop solutions that can simplify complex investment opportunities so that they’re not only the domain of large institutional investors. This is exactly what is being done through the founding of the London Carbon Exchange.
Comment: AQRU certainly seems to be on the front foot to start 2023, with the launch of the London Carbon Exchange something which seems likely to put the company on the map, and broaden interest in the area with regard to investors.
Further to the announcement of 13 February 2023 regarding the proposed Fundraise, Gfinity (GFIN) announced that it has conditionally raised £2 million (before expenses) in an upsized Placing and Subscription.
Comment: While the market waits for reassurance that there is money in esports, we see Gfinity raise £2m.
Zephyr Energy (ZPHR), the Rocky Mountain oil and gas company, provided an update on operations on the State 36-2 LNW-CC well at the company’s flagship project in the Paradox Basin, Utah, U.S. The company said the State 36-2 LNW-CC well was a challenging and lengthy operation, more difficult than expected but not atypical when drilling in an immature, remote and highly over-pressured basin. Despite the challenges, it has managed to move the bar again and delivered what would appear to be another productive well on its acreage.
Comment: It may be the case that after a few issues in the recent past, Zephyr is now ready to reclaim its former status as a stock market darling. Certainly, the latest news underlines the tenacity of the company in being able to overcome obstacles.
Mkango Resources (MKA) said it has been informed that William Dawes, CEO, has purchased 800,000, shares, 400,000 shares at a price of 12.95p, and 400,000 shares at a price of 12.75p per share. He now has 4.42% of the company.
Comment: A decent gesture from the CEO in dipping into his wallet just after the recent fundraising of £3.5m.
Aura Energy (AURA) announce that the Resource Upgrade program undertaken in 2022 has increased the Measured and Indicated Resources at the Tiris Project from 19.5 Mlbs to 29.6 Mlbs, 62.2Mt at 216ppm U3O8 at a 100ppm cut-off. The company said the significant increase of its M&I resources confirms its confidence that the Tiris province which it believes has great expansion potential. Its immediate focus is now to work with its Mauritanian stakeholders, offtake providers, investors and financing partners to progress towards a decision to Mine in Q3 CY2023, a target construction timeline of Q4 CY2023, and first production expected in late 2024 or early 2025.
Comment: Shares of Aura have more than doubled since the summer. Today’s announcement is of the calibre that one would judge further significant gains are in the offering over the course of 2023.
The Financial Conduct Authority (FCA) has publicly censured Amigo Loans Ltd (AMGO) for failing to conduct adequate affordability checks on borrowers and guarantors. The FCA would have imposed a fine of £72,900,000, however Amigo demonstrated that this would cause it serious financial hardship. Amigo said it had failed to assess properly the affordability of its lending, especially to vulnerable consumers, as its rules required.
Comment: It is always interesting that the FCA seems more keen to fine wrongdoing, than compensate the victims of wrongdoing. One might be forgiven for thinking the FCA exists primarily to deliver an operational tax on financial companies. The £72.9m fine is like giving 99 year prison sentence to a centenarian.
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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
