Helium One Global (HE1), the primary helium explorer in Tanzania with a 50% working interest in the Galactica-Pegasus helium development project in Colorado, USA, provides an update following the Blue Star Helium (ASX: BNL) announcement issued today regarding the Galactica Project.
New samples from the State-16 well show a helium concentration of 2.17%, representing a material increase from the previously reported non air-corrected average of 1.65%.
Comment: Of course all updates from Galactica are welcome, but as we know going from 1.65% to 2.17% is not really going to make one’s voice sound much more squeaky.
Premier African (PREM) said Zulu’s prepayment and offtake partner with whom detailed discussions continue. Whilst this remains our preferred solution, Premier is also engaged with other new potential investors. In the absence of a financing solution, Premier may need to consider alternative options for Zulu in the interests of its creditors and shareholders, which may include raising financing at the subsidiary level, a sale of Zulu whilst keeping it in a state of care and maintenance, the liquidation of the assets of Zulu, or other options available under Zimbabwean laws including a corporate rescue of Zulu.
Comment: We have a somewhat ominous hint that the long and brave PREM odyssey could be near its end, and perhaps not in a good way. However, Mr Roach continues to fight on.
Hunting (HTG), the precision engineering group, today announces its results for the year ended 31 December 2024. Revenue increased by 13% to $1,048.9m. EBITDA increased by 23% to $126.3m.
Comment: Although woke investors may be somewhat squiffy regarding energy industry plays, this merely underlines how well HTG is doing, and how those of a more traditional investment profile can enjoy getting on board with the shares down over a quarter from last year’s peaks.
Informa (INF), the international Live B2B Events, B2B Digital Services and Academic Markets Group today published full year results for 2024, reporting double digit revenue and profit growth, the resumption of share buybacks and guidance for further strong growth in 2025.
Comment: Perhaps rather mysteriously, shares of INF have dipped ahead of today’s stellar update. This should provide a decent entry point for those looking to get on the company’s strong story.
Coats Group (COA), the world’s leading industrial thread and footwear components manufacturer, announces its audited results for the year ended 31 December 2024. EBITs up 16% to $270m. Net debt up from $384m to $449m. Commenting on the results David Paja, Group CEO said:
“We are pleased to have delivered another strong financial performance in 2024, despite wider macroeconomic uncertainties and I would like to thank all Coats employees for this achievement.”
Comment: While debt is up, the rise in free cash flow and outlook and low leverage and growth prospects more than offsets this. The stock should continue the 2023-4 rally for the rest of this year.
Northern Bear (NTBR), the AIM quoted group of companies providing specialist building and support services headquartered in Northern England and serving customers across the UK, provide a trading update in respect of the financial year ending 31 March 2025. NTBR said “We are delighted that EBIT is likely to exceed market expectations and be in the range of £3.15m – £3.45m. Our order book remains strong and we are hopeful of a good end to the financial year.”
Comment: The stock market as we know takes no prisoners in terms of small caps underperforming. However, today’s EBIT upgrade from NTBR will be enough not only to get the share price moving, but attract fresh investors to the stock.
Narf Industries (NARF), a cybersecurity group specializing in advanced threat intelligence and software system security, is pleased to announce its U.S. subsidiary, Narf Industries LLC, signed a US$6.8 million multi-phase contract with the U.S. Government’s Defense Advanced Research Projects Agency. This three year contract, under DARPA’s Intelligent Generation of Tools for Security (“INGOTS”) programme, aims to identify and address high-severity, chainable vulnerabilities before they can be exploited by attackers. Three year, US$6.8 million multi-phase contract commencing 31 January 2025.
Comment: Those familiar with NARF have been well aware that the sizzle here is that the company has all the contacts, connections and security clearances at the top level with the US Government. This makes today’s chunky contract all the more pleasing.
Xtract Resources (XTR) announce the start of a diamond drill programme at Silverking (Licence 26673-HQ-LEL). XTR also provided an update on exploration taking place on Licences 29123-HQ-LEL, 30458-HQ-LEL, 30459-HQ-LEL, 21850-HQ-LEL and 21851-HQ-LEL located in NW Zambia within both the Western Foreland and Fold & Thrust Belt domains.
Comment: Shares of XTR are actually up 10% on the year, something which may be due to the value at current levels, but also prospects for its projects such as those mentioned in today’s two RNSs.
Kenmare Resources (KMR) noted the recent press speculation and confirms that it has received a non-binding proposal from Oryx Global Partners Limited and Michael Carvill (together the “Consortium”) regarding a possible all cash offer for the entire issued and to be issued ordinary share capital of Kenmare. The most recent proposal received was at a price of 530 pence per Kenmare ordinary share.
Comment: With many small cap CEOs looking at share prices down 90% or more in a year, the fact that KMR has been on the receiving end of an offer some 90% above the prevailing share price, rather underlines how bad the London market is at pricing companies, and how well its share price fixing cartel works to the detriment of so many in the market.
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.
