This post was written by Zak Mir, a Technical Analyst, Events Host, Presenter, CEO Interviewer and established Market Commentator.
Helium One Global (HE1), the primary helium explorer, announced its unaudited condensed and consolidated results for the six months ended 31 December 2022, as well as providing an update on the company’s progress on its projects in Tanzania post the half year end. The company said securing a rig for the planned campaign at Rukwa is its number one priority. The exploration work that has been carried out to date has significantly de-risked the Rukwa project and it is excited about the drilling programme which it believe has the potential to prove up what it believes to be a world class helium province. Net cash stood at $13.7m at the end of 2022.
Comment: A new CEO and a pile of cash means that HE1 should be able to finesse Rukwa significantly during 2023.
Nuformix (NFX), a pharmaceutical development company, updated regarding the NXP002 programme, a proprietary new form of tranilast, being developed as a novel inhaled treatment for Idiopathic Pulmonary Fibrosis. The company said all parties are delighted with the results from this study, which are as good as it could have hoped for and are the first results from what is the most advanced iteration of this ‘close to patient’ IPF disease model to date.
Comment: While sentiment towards the stock is certainly on the back foot, there is just a chance the fundamental tide is turning enough to encourage a modicum of bargain hunting at NFX
First Tin Plc (1SN), a tin development company, announced that the Saxonian Mining Authority has reviewed the company’s plans for its 100% owned Tellerhäuser project in Germany and confirmed the asset’s eligibility to move straight to the construction and operational permitting process. This reduces the overall permitting timeframe by a period of up to 12-18 months. The company said this approval from the authorities is a welcome step in advancing its mining activities at its Tellerhäuser asset and is testament to early-stage commitment to best-in-class environmental responsibility.
Comment: It might be said that if today’s positive timeline news from 1SN does not move the dial as far as turning around the recent bear run, it is difficult to know what will.
Union Jack Oil (UJO) a UK focused onshore hydrocarbon company, announced that material landmark net revenues, well in excess of $14,000,000 have been achieved from the Wressle hydrocarbon development, located within licences PEDL180 and PEDL182 in North Lincolnshire on the western margin of the Humber Basin. Union Jack holds a 40% economic interest in this development. The company said encouragingly, its significant cash balance continues to expand on a monthly basis, and it is funded for G&A, OPEX and contracted or planned CAPEX costs, including any drilling activities for at least the next 12 months.
Comment: Being funded for at least the next 12 months is about as good as it gets as far as a phrase to announce in the current stock market environment.
Technology Minerals (TM1), the first listed UK company focused on creating a sustainable circular economy for battery metals, announce that it has raised £2.5 million (before expenses) from a new high net worth investor. The company said it was pleased to secure funding from a new long-term shareholder, which provides it with sufficient runway to progress projects currently underway.
Comment: One imagines that the long term investor at TM1 is being tracked down by dozens of small cap companies at the moment, in order to see if they might spare some cash. It will be interesting to see whether the £2.5m will finally turn the tide for the share price.
Global Petroleum (GBP) announced an updated estimate of Prospective Resources for its licence PEL0094, offshore Namibia. Global holds a working interest of 78 per cent in the Licence, and is operator. The company said as the initial conclusion from its further technical work, it is pleased to report the very significant increase in prospective resources – as well as the improved risking – for our primary prospect, Marula. This, together with the supporting technical detail, will now be communicated to potential farm-in partners.
Comment: Psychic investors seem to have been picking up on today’s announcement in recent days. Ideally, there will be some follow through towards the 0.4p zone.
Equals Group (EQLS), a payments group focused on the SME marketplace, announced that it has entered into a conditional agreement to acquire the entire issued share capital of Oonex SA, a payments services provider to the FinTech sector, for a total consideration of up to £4.1 million. The company said the acquisition of Oonex which enables it to bring its products to new customers across Europe. It is establishing its European headquarters in Belgium and to make use of the investment in technology that it has made over the past few years to rapidly deploy its platform. For FY 2022 the company announced adjusted EBITDA increased 81% to £12.1 million (FY-2021: £6.7 million) and year-end cash increased 15% to £15.0 million (FY-2021: £13.1 million).
Comment: Equals is consolidating is massive EBITDA jump with an acquisition, something which suggests that the company is keen to deliver a land grab in its space.
Audioboom (BOOM), the podcast company, announced that Michael Tobin OBE, non-executive Chairman of the Company, purchased 2,222 ordinary shares in the company on 24 March at a price of 440p. Following this purchase, Michael Tobin holds 727,222 ordinary shares in the company, representing approximately 4.5% of the company’s issued share capital.
Comment: Tobin’s buying of BOOM at the very least demonstrates that he is leading from the front, in what has if nothing else been a very persistent example of the art of averaging down. Holders will be hoping that January’s 347p low remains the 2022 low, courtesy of the latest director buying.
Coro Energy (CORO), the Southeast Asian energy company, has now signed the Sale and Purchase Agreement for the disposal of its Italian natural gas assets to Zodiac Energy plc by way of the sale of the entire issued share capital of Coro Europe Limited. Zodiac Energy plc is a UK based holding company for an Italian subsidiary company Pengas Italiana Srl, which extracts crude petroleum and natural gas in Italy. The company said the funds received will be used to meet Duyung PSC expenditure; potential further solar projects in Vietnam, to continue to progress Philippines solar and wind projects to achieve ready to build status; and for working capital whilst being mindful that the Eurobond due date is in April 2024.
Comment: Coro shares have been stuck in the 0.25p zone since December, despite lots of intriguing speculation regarding the company from credible investors regarding South Asia. This disposal appears to dovetail well with the reminder of the Eurobond due date next year.
Bluejay Mining (JAY), the AIM, FSE listed and OTCQB traded exploration and resource development company with projects in Greenland and Finland, announced the results from the first exploration programme of 2023 at the Enonkoski Nickel-Copper-Cobalt Project in eastern Finland as part of the Joint Venture and earn-in agreement with Rio Tinto Exploration Finland Oy announced 10 November 2020. The company said the results from the first 2023 drilling with Rio Tinto on the Enonkoski Project are very encouraging with one of the drill holes returning significant intervals of sulphide-droplets, representing the highest sulphide content of any hole it has drilled in the Laukunlampi intrusion to date. Furthermore, individual droplets yield by far the highest Ni tenors of any sulphide so far encountered within this intrusion.
Comment: Despite the pedigree of its assets and its blue chip partner, the market has been curiously and disappointingly harsh on JAY. It really should be the case that this attitude changes soon.
Bradda Head Lithium (BHL), the North America-focused lithium development company, announced further significant intercepts of high grade lithium bearing minerals at multiple locations from the second set of assay results from its maiden diamond core drilling programme at the Company’s 23km2 San Domingo pegmatite district in Arizona. The company said this next set of results from this first drill programme at San Domingo highlights further a distinct district scale potential with multiple areas showing promising results and high-grade lithium intersections with visible spodumene. As a result, Bradda is in the process of designing a follow-up drilling programme in H2 of this year aimed at testing additional ground within the much wider 23km2 of lithium pegmatite claims and leases held in Arizona.
Comment: Despite recent positive news regarding Arizona, Bradda has become something of a Cinderella amongst UK listed lithium plays. This seems rather undeserved.
Canadian Overseas Petroleum Limited (COPL), an oil and gas exploration company, announced that it successfully completed its $14.8 million convertible bond financing on March 24, 2023 with the full increase option being exercised. The company said that it has also issued 26,842,036 common shares settling $2.2 million of payables to arm’s length creditors of the company. The price at which the shares were issued was at a premium to the LSE share price.
Comment: It may be that at least some of COPL’s rather vociferous bears are somewhat upset by the revelations in the latest RNS, which they were perhaps not counting on. However, the share price reaction depends on whether the company’s retail following still believes in the cause.
Zakmir.com is a purely journalistic website – Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.
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