Helix Exploration (HEX), the helium exploration and development company with near-term production assets within the Montana Helium Fairway, provided the market with an update on operations at its Rudyard Project.
HEX said Results from Darwin #1 indicate that the anticline at Rudyard surpasses our expectations and is larger than previously modelled. This could represent the largest producing helium structure in the State of Montana. We look forward to an exciting quarter for Helix Exploration as we continue to create value for shareholders and advance Rudyard towards production and early cash flow.
Comment: The market is somehow choosing to ignore not only the potential of Darwin #1, but perhaps more importantly the prospect of cash flow sooner than later. With shares of HEX near the low end of the range currently, those au fait with the cause are probably eyeing up the stock currently.
Avacta Therapeutics (AVCT), a life sciences company developing next generation peptide drug conjugates (PDC) targeting powerful anti-tumor payloads directly to the tumor, announced compelling new data in patients with salivary gland cancer (SGC) from the ongoing Phase 1a trial of AVA6000 in patients with FAP-positive solid tumors. The data demonstrates robust and meaningful tumor shrinkage in patients with salivary gland cancers, a disease with no standard therapy defined in the metastatic setting. AVCT said these data highlight the transformative potential of our pre|CISION® peptide drug conjugates in expanding the efficacy of highly potent therapeutics and support our growing optimism in this program. Salivary gland cancer is a devastating disease with no established standard of care treatment options. AVA6000 demonstrated a clinically meaningful tumor shrinkage in SGC patients, highlighting its potential as an important new treatment option for patients with SGC and other solid tumors.
Comment: This is clearly a worthy and significant breakthrough by AVCT. The issue for shareholders is which particular breakthrough / RNS will get the big re-rate so many of them are waiting for in the stock.
MicroSalt (SALT), a provider of full-flavour natural salt with approximately 50% less sodium, is announced the US FDA has just proposed requiring At-a-Glance Nutrition Information on the Front of Packaged Foods to indicate sodium levels, fat and added sugars. The proposed FOP nutrition label provides information on saturated fat, sodium and added sugars content in a simple format showing whether the food has “Low,” “Med” or “High” levels of these nutrients. SALT said the FDA proposed front of package guideline is a game changer for the packaged food and beverage industry in the United States. It will provide consumers readily visible information about a food’s saturated fat, sodium and added sugars content-three nutrients directly linked to chronic diseases when consumed in excess. Additionally, the new FOP guidelines support Microsalt’s® position as a leading food ingredient for US food manufacturers to use in their reformulation efforts to provide a healthier, consumer friendly product.
Comment: One might not have expected our friends across the pond to go for the Nanny State approach, especially on basic items such as salt. But it appears they do, and this should work well in favour of the SALT cause.
Neo Energy (NEO), the near-term, low-cost uranium mine developer, announced the appointment of Bacchus Capital Advisers Limited as its strategic and financial adviser. Bacchus Capital is an independent investment and merchant banking boutique specialising in strategic and corporate finance advice, mergers and acquisitions, capital raisings and natural resource sector ventures. Bacchus Capital is headquartered in Central London, with representation in Asia, North America and Australia. Further information on Bacchus Capital can be obtained from their website: https://www.bacchuscapital.co.uk
Comment: Fans of NEO are already looking for decent RNS announcements, perhaps regarding more on the uranium expansion front, so the news that Bacchus is on the case should only heighten such speculation.
Petro Matad (MATD), the AIM quoted Mongolian oil company, provides the following update on production operations at the Heron-1 well in its Block XX Production Sharing Contract area in eastern Mongolia and on the signing of a new Production Sharing Contract. MATD said it was very pleased to see Heron-1 maintaining production and showing potential to increase its flow rate with some low cost modifications. It is also good to see a sizeable inventory of Block XX oil accumulating at TA-1 and it is pushing for sign off on the Cooperation Agreement to trigger the start of sales revenue.
Comment: While the company continues to sound upbeat, as it is in the current RNS, it has not been able to arrest the ongoing slide in the share price. Perhaps the prospect of sales revenue will turn the tide?
PetroTal Corp. (PTAL) provided the following 2025 guidance update. Target average 2025 production and sales of 21,000 – 23,000 barrels of oil per day, a ~24% increase on 2024. Capital investment of $140 million, a decrease of approximately 14% on 2024. Target annual EBITDA of $240 – 250 million at $75.00 Brent, net of $30 million expensed for non-recurring erosion control, a 6% increase on 2024.
Comment: Shares of PTAL have bounced sharply since the middle of last month, something which hopefully today’s update will justify. The company should be back towards the top of the one year range near 50p, or would be if it communicated more with the market.
KEFI (KEFI), the gold and copper exploration and development company focused on the Arabian-Nubian Shield, announced that its Gold and Minerals SLA joint venture in Saudi Arabia has been awarded the Umm Hijlan Exploration Licence, located directly south of the Hawiah EL. The licence was secured following a competitive bidding process that assessed the quality and merits of each tenderer’s proposed exploration programme. KEFI said the Umm Hijlan EL provides the opportunity to quickly add nearby Mineral Resources to the Hawiah Copper-Gold-Zinc-Silver Project which is at the Definitive Feasibility Study stage. The EL potentially increases the strike length of the already- “JORC’d” mineralised structure from c. 5kms to 9kms. Being a continuation of the same VMS system, these potential resources are likely to turbocharge the economics of the Hawiah Project.
Comment: KEFI is / was already sitting on more licenses than DVLA ahead of today’s news. With the shares at 3 year lows, the company is overdue turning all its multifarious assets / projects into production or sales.
Cambridge Nutritional Sciences (CNSL), the specialist medical diagnostics company, announced that its subsidiary, Omega Diagnostics Limited has settled its long-running dispute with the Secretary of State for Health and Social Care. CNSL said the result of the settlement will allow £2.5m of ‘Deferred Income’ held in the group balance sheet to be reclassified as ‘Other exceptional Income’ for the year ending 31st March 2025. This movement will not impact the Company’s key KPI of adjusted EBITDA as this income and its associated costs are exceptional in nature and so are not indicative of the current underlying business performance.
Comment: Peace in the Middle East, and an agreement for CNSL with the DHSC. It would appear that for 2025 we are truly in a new and brighter era.
Wise (WISE) announced its 3rd Quarter Results: 24% volume growth YoY driven by 9m active customers. WISE said “this quarter saw us take another step closer to achieving our mission, most notably through extending the availability of Wise to even more customers. Having seen rapid customer growth from the popularity of the Wise Account for individuals in Brazil, we were pleased to also launch our service for micro-businesses based in Brazil during the quarter. This comes as we work towards integrating with Brazil’s payment system (PIX) which will further enhance the quality of our proposition in the country.
Comment: Shares of WISE have more than tripled since the summer of 2023, something which underlines how much business it is taking from the High Street players, as well as how rubbish and expensive the traditional banks are. No wonder we have the latest news of belt tightening at Lloyds.
CAB Payments (CABP) announced an update on its strategic progress and trading performance for the year-ended 31 December 2024. The Group will issue its full-year results on 13 March 2025. During 2024, the Company said it made good progress on its strategic goals to deliver a more predictable, diversified business with a longer maturity profile. In particular: Network size increased by 18% to 390 bank counterparties (2023: 331), with more than 40 new counterparties outside of the Group’s core Africa region.
Comment: Perhaps rather interestingly, I have been approached by a few people in the recent past who apropos of nothing have suggested that CABP is cheap. This may be the case, but it could also be a value trap. Perhaps there will be true value once again under 50p?
DP Poland (DPP), the operator of Domino’s Pizza stores and restaurants across Poland and Croatia, provides the following trading update for Q4 and the full year ended 31 December 2024. DPP said in Poland, our operations achieved a third consecutive year of double-digit like-for-like (LFL) system sales growth, rising by 17.9%, driven by rising order volumes and new customer acquisition. We have sharpened our pricing strategy, enhanced customer value and achieved record-breaking levels in both sales and orders in the fourth quarter, positioning us well for sustained performance in 2025.
Comment: One of the UK stock market’s best couch potato plays, even though the focus here is on eastern Europe. After a flat year for the shares last year, one would expect 2025 to see the 20%-30% rallies we saw in 2021 and 2022, even though they were boosted by the pandemic.
Global Petroleum (GBP) announced the delivery of final data for ground gravity for the Juno Project in Western Australia, further to its announcement on 25 November 2024. Analysis of the gravity data has confirmed a significant residual gravity response at Juno, aligning with the prominent magnetic feature previously identified. This critical alignment represents a typical signature of Intrusion Related Gold System (IRGS) mineralisation, analogous to the Havieron deposit model, which has delivered exceptional gold-copper results in the Paterson Province of Western Australia.
Comment: GBP continues to be one of the near term punting stocks du jour, and the latest news should add some fuel to the fire, even though it is rather on the technical / obscure side.
Angus Energy (ANGS) said Production from the Saltfleetby Field in the Fourth Quarter of 2024 was 517 million standard cubic feet of natural gas and 9,387 barrels of gas condensate. In addition, the Brockham Field produced 2,130 barrels of crude oil during the Quarter. Gas sales of 5.73 million therms were achieved in the Quarter from the Saltfleetby Field. Estimated revenues of £6.12m for the Quarter.
Deltex Medical Group (DEMG) provided an update following the close of the financial year ended 31 December 2024. This included a proposed cancellation from AIM, proposed director changes: CEO to step down and current COO to become CEO.
Comment: Everything in this RNS apart from “Do not pass go, Do not collect £200.” Alas the state of the stock market is dire and getting worse for those companies who are not making a minimum of £1m a year. No one can blame DEMG for heading for the exit.
Savills (SVS), the global real estate advisor, published the following trading statement in respect of the year ended 31 December 2024. The Group expects its full year performance for 2024 to be in line with its expectations and substantially ahead of the previous year. This is a good performance given significant volatility in transactional market sentiment over the course of 2024, which has nevertheless shown recovery in most markets.
Comment: It would appear that our slick friends at SVS, with their international footprint, and smug RNS are taking advantage of the way that at any point, somewhere in the world is having a real estate boom.
Celadon Pharmaceuticals (CEL), a UK-based pharmaceutical company focused on the development, production and sale of breakthrough cannabis-based medicines, provided an update on its strategic collaboration with Valeos Pharma A/S and its progress in meeting European supply commitments. Following the announcement of our strategic collaboration with Valeos on 11 September 2024, we are pleased to confirm that this agreement is now actively contributing to Celadon’s operations.
Comment: Although it is a shame that we are not being told how much Valeos is contributing to CEL, at least the latest RNS hints that thoughts of the company’s imminent demise may be premature. No doubt the stock market’s shorters, bad actors and psychopaths will be very disappointed.
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.
