Metals One (AIM: MET1), which is advancing strategic minerals projects in Finland and Norway, announced that re-assaying of historical diamond core drillholes from the Black Schist Project Paltamo P1 target in Finland has identified high-grade nickel-copper-cobalt-zinc mineralisation across two intersections within a black schist sequence.
Results further demonstrate the strength of the Company’s project pipeline and support Metals One’s longer‐term ambition of defining a 200 Mt resource at the Black Schist Project where the current resource stands at 57.1 Mt Ni-Cu-Co-Zn over the R1 and P5 areas.
Comment: The key for MET1 is to prove up as much new assets as possible, so that the disconnect between the current stock market valuation is heightened accordingly. Today’s news is just what the doctor ordered in this respect.
EnergyPathways (EPP), an energy transition company developing low carbon integrated energy solutions in the UK, advised that it has entered into a £5.1 million loan facility for its Marram Energy Storage Hub (MESH) infrastructure project, a large-scale clean energy storage facility. The loan facility is able to support the MESH project through the FEED phase with a view to reaching FID at the end of 2025. EPP said this transaction demonstrates the strong investment appeal of EnergyPathways’ MESH project as a cleantech integrated energy infrastructure solution able to deliver reliable and decarbonised energy supply to the UK and its potential to deliver high yield infrastructure returns to investors over the project’s 20 year life.
Comment: The rather obvious reason for EPP share price weakness since it came to market was the market knowing that it simply did not have the cash for magnitude of the projects it has. Today’s funding news addresses this issue and could allow the shares to turnaround.
ProBiotix Health plc (AQSE: PBX), the life sciences business developing probiotics to support cardiometabolic health, announced a commercial partnership with Ukraine based pharmaceutical distributor Deutsch-Pharm Lcc. PBX said it was excited for the opportunity to work with a leading company like Deutsch-Pharm to open up this region for its probiotic products based on LPLDL ®. Through this significant cooperation its products will become available to Ukrainian consumers through brick and mortar pharmacies as well as online stores, providing an excellent opportunity to be positioned by a professional partner with a strong position and an in depth understating of the market dynamics in Ukraine.
Comment: Given the lay of the land, an initiative in Ukraine has to be commended. The deal also highlights that current issues with Optibiotix (OPTI) aside, this is a solid company with strong prospects based on the type of commercial partnerships announced today.
Premier African Minerals (PREM) announced a subscription today for 1,746,031,746 new ordinary shares to raise approximately £550,000 before expenses at an issue price of 0.0315 pence. PREM said it was making progress, and it does expect a resolution to this final problem after which it does expect to produce at grade and at design recovery. The alternatives set out above are under active negotiation and a satisfactory outcome should result.
Comment: Another day, another fundraise, and still only 36bn shares in issue. With the “resolution” in sight, some might believe that PREM is finally going to deliver in terms of production. The only problem is that historically this is the point when a new bump in the road appears.
Jubilee (JLP), a diversified metals producer with operations in South Africa and Zambia, announced its audited results for the year ended 30 June 2024 (FY2024). Jubilee delivered another profitable performance achieving notable growth in chrome production while successfully meeting its revised copper targets. Strong operational performance was delivered by the Group with increased production in chrome and copper supported by the ongoing expansion of processing capacity in both chrome and copper. JLP said it was pleased to report strong operational performance, with significant growth across our copper and chrome operations. Its South African operations delivered considerable growth to achieve a new record in chrome production, which was able to in part offset a challenging PGM market.
Comment: All the key production metrics for JLP are up well, or very well. The slight EBITDA reduction does not take the gloss off this. And there have been no cold water comments on any side of its sprawling business, something which should finally allow the share price to re-rate in the way the company deserves.
Zenith Energy (ZEN), the listed international energy production and development company, updated regarding the international arbitration proceedings it has initiated against the Republic of Tunisia and ETAP, the national company of the Republic of Tunisia. ZEN said it was making steady progress on all fronts in the arbitrations commenced against the Republic of Tunisia. The total cumulative amount claimed across the three pending arbitrations now stands at US$639.7 million. It was hopeful regarding the outcome of the ICC 1 arbitration, due by the close of the year.
Comment: Whether it is $639.7m or ten times that amount, the London market is not a place that likes to anticipate a big litigation win. The best aspect at ZEN is that the waiting game here in the first instance is only until the end of the year.
Galileo (GLR) advised on 21 August 2024 at the commencement of drilling of the Phase 3 Reverse Circulation drilling programme on the Shinganda Licence that it would update shareholders with any material updates. GLR said it was pleased with the outcome of this drilling programme both RC and diamond drilling. The mineralisation appears to extend over 6km cumulatively on the two mineralised structures at varying widths from 6m to 47.5m. Whilst the core and RC chips appear to be well mineralised it has sent samples for assay. The Shinganda Project is shaping up to be significant in terms of copper and gold contribution and it eagerly awaits the assay results in order to proceed with the next phase of extension and infill with the objective of establishing a JORC (2012) Mineral Resource.
Comment: As is evident from today’s news, Shinganda has the prospect of being a key part of the GLR portfolio, something which one would expect to be revealed as we head towards JORC.
Mkango Resources (MKA) announced that HyProMag and Mkango UK have been awarded grants totalling £218,932 as part of the CLIMATES (Circular critical materials supply chains) programme, a £15 million investment delivered by Innovate UK. MKA said the innovative partnerships it is funding will explore novel ways to support its supply of these Rare Earth Elements in the UK and have enormous potential. Backing from Innovate UK will accelerate their work towards commercialisation.
Comment: Non-dilutive funding, however modest is a massive boost for companies like MKA, especially when there is the prospect of this to become a regular event.
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
