The UK economy climbed 0.1% quarter-on-quarter in the three months to December, the Office for National Statistics said. Gross domestic product had been flat in the third-quarter from the second. The fourth-quarter reading defied expectations of a 0.1% fall, according to FXStreet-cited consensus. In December alone, GDP improved 0.4% on-month, beating forecasts of a 0.1% rise. In November, GDP rose 0.1% from October. (Alliance News)
Comment: Despite the government’s best efforts, the UK economy is not in recession. This would imply there is scope for raising taxes yet further, according to socialist logic, as the economic golden goose continues to survive against the odds. What may explain the resilience is that not all of the damage from the budget has yet hit the economy / consumers.
Oberon Investments Group (AQSE: OBE), the boutique investment management, wealth planning and corporate broking group, announces that it has raised £2.50 million before expenses, at a price of 4.5 pence per share. OBE said “We are delighted with the support we have received from both new and existing shareholders for this fundraising. Notably, staff and directors have participated in this round, subscribing for 15% of the raise, which is a strong reflection of the positive outlook from within the company.”
Comment: The amount of in-house participation in the placing is a good tell as far as the current and future prospects of OBE, which continues to graft its specialist niche in the City.
Wildcat Petroleum (WCAT) a company targeting investment opportunities in businesses and assets within the upstream sector of the petroleum industry announced the appointment of Mr Charles Hall as a consultant to the Company with immediate effect. Mr Hall’s role within Wildcat will be to work with the board to widen the breadth and depth of the Wildcat shareholder base, with particular emphasis on institutional natural resources investors with past experience of investing into African oil projects.
Comment: We certainly have a grown up appointment here at WCAT, one that very much puts the spotlight on ongoing efforts at dealmaking, but also opens up the prospect of wider campaigns within its space.
Oracle Power (ORCP), an international project developer, announced that drilling is planned to re-commence in March 2025 at the Northern Zone Intrusive Hosted Gold Project located just 25km east of Kalgoorlie, Western Australia. ORCP said the significant high-grade gold assays at Northern Zone from 2024 drilling have continued to expand the gold mineralised footprint of the porphyry over a larger area and confirms the presence of a significant gold system. The Australian dollar gold price has passed $4,500/ounce, which bodes well for this exciting project.”
Comment: Northern Zone has been an impressive, and as compared to the company’s other prospects, a relatively easy win which is exceeding expectations.
ImmuPharma (IMM), the specialist drug discovery and development company, is pleased to announce an equity fundraise of c.£2.91 million at 3.75p. IMM said “We believe that 2025 will be a transformational year for ImmuPharma, with further positive news announcements within the P140 technology platform and a clear focus on securing partnering deals for all the assets across our development portfolio.”
Comment: IMM takes advantage of the rally in the shares off the back of its P140 breakthrough with a decent sized fundraise which should be enough to all it to develop its portfolio yet futhe4r.
Contango Holdings (CGO), a company focused on unlocking value from the +2 billion tonne Muchesu coal project in Zimbabwe confirmed it has now received a further royalty payment of US$300,000. This brings the total royalty receipts to date under the previously reported Mineral Royalty Agreement with Huo Investments (Pvt) Limited to US$500,000. The balancing US$500,000 payment under the previously reported US$1,000,000 is expected to be made later this month.
Comment: Although there has been a tentative recovery in shares of CGO since the summer, given the royalty arrangement the company has, one might have expected rather more enthusiasm from the market.
Ondo InsurTech (ONDO), a provider of claims prevention technology for home insurers, is provided a trading update. Full-Year Revenue to 31 March 2025: Estimated at £4.5m-£5m, ~70% growth versus FY 2024 (£2.7m). Company remains on track to achieve EBITDA positive trading in H2 FY 2026. ONDO also confirmed that Liberty Mutual Insurance, the 6th largest personal lines P&C insurer in the US, has signed a contract with LeakBot USA Inc. to pilot the LeakBot device and service to homeowners’ insurance customers in four US states.
Comment: ONDO remains one of only a handful of genuinely scaleable, international growth situations in the small cap space, a situation helped along currently by the prospect of going EBITDA positive next year.
British American Tobacco (BATS) announced Preliminary results for the year ended 31 December 2024. BATS said “In 2025, while we expect significant regulatory and fiscal headwinds in Bangladesh and Australia to impact our combustibles performance, I am confident that we will progressively build on our delivery as we shift from investment to deployment and we remain committed to returning to our mid-term guidance of 3-5% revenue and 4-6% adjusted profit from operations* growth on a constant currency in 2026.”
Comment: Before woke and ESG there was sin stocks. One of the best was and remains BATS, a point underlined by the skill the company has in sidestepping headwinds, both economic and regulatory.
Empire Metals (EEE), the AIM-listed resource exploration and development company, announced the results from its recent mineral separation and hydrometallurgical testwork programme, carried out on core samples taken from the weathered cap that extends across the Pitfield Project, located in Western Australia. EEE said “Importantly, the titanium dioxide minerals contained within the flotation concentrates responded well to the subsequent leaching stage, with titanium recoveries peaking at 91%.”
Comment: EEE seems to have been in consolidation mode over much of the past year, as the company continues to assess and prove up Pitfield, a process that appears to be progressing well.
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.
