Reabold Resources (RBD), the oil & gas investing company, announced the exercise of certain of its options to increase its interest in LNEnergy Limited by a further 13.2%, for an aggregate cash consideration of £500,000, to be satisfied through existing cash resources (the First Option), and £1,500,000 through the issue of new shares at a price of 0.185p.
The company said the potential in the Colle Santo gas field presents an exciting opportunity for Reabold to pursue its investment strategy to fund low risk, near-term projects with a clear path to generating cash flow. Its detailed work and analysis in recent weeks have increased its confidence that development of the field will ultimately be approved. Reabold has acquired a significant interest in the project through its investment in LNEnergy, and it looks forward to updating shareholders with progress on the project throughout the year.
Comment: While shares of RBD continue to be noticeably under loved and sentiment low, the company continues to get on with the job of creating value for shareholders. It is noticeable that the share issue here is at a decent premium to the prevailing share price, something which underpins the company’s ongoing share buyback programme.
Tungsten West (TUN), the mining company focused on restarting production at the Hemerdon tungsten and tin mine in Devon, in the UK, announce that it has entered into a strategic collaboration with Oxford Sigma, a fusion energy company based in Oxfordshire, UK, to explore and establish critical supply pathway options enabling the use of the critical material, tungsten, for fusion energy deployment. TUN said that by leveraging its combined expertise and resources with Oxford Sigma, it is proud to be at the forefront of, and is poised to unlock, the full potential of tungsten for fusion energy deployment, a potentially limitless carbon free energy source for the future.
Comment: This is certainly an eye opening, and left field announcement from TUN. However, if the deal with Oxford Sigma is as good as it seems it really could be an historic collaboration.
Cizzle Biotechnology (CIZ), the UK-based diagnostics developer, announced that it has conditionally raised gross proceeds of £350,000 by way of the issue of new shares at 2.1p. The company said it continues to make excellent progress in developing its laboratory test for CIZ1B. Through refining its test it is now at a stage when it can commence work on its point of care test for use in doctors’ offices and healthcare outlets such as pharmacies. The funds raised from the Subscription and converting the Facility in full will provide continued momentum in bringing its proprietary novel technologies for detecting lung and other cancers at an early stage to thereby potentially preventing suffering and saving many lives.
Comment: Shares of CIZ have halved since their rally earlier this year peaked. It may be now that the fundraise is out of the way, albeit one that should have been carried out at a rather higher level, the shares can resume their upward trajectory.
First Tin (1SN), a tin development company announced that all drilling, including “Phase 2” infill and extension drilling, at its Taronga tin project in Australia, is now complete and that the results from the programme have confirmed the approximately 400m extension to the southwest. The company said its team in Taronga has made great progress over the past year and it is incredibly pleased to confirm that all drilling at its Taronga tin project in Australia is now complete and that the results from the programme have confirmed an approximately 400m extension to the southwest. This will be incorporated into a revised MRE, with results expected within Q3 2023.
Comment: Almost on the sly 1SN has progressed what we know about its Australia project, and it would appear that over the past couple of months, the market has cottoned onto this. The share price recovery since April seems set to continue.
Futura Medical (FUM), a pharmaceutical company, announces that the FDA has granted over OTC Marketing Authorisation for MED3000, the company’s breakthrough, topical gel formulation for the treatment of erectile dysfunction as a De Novo Medical Device. The company said it was delighted that it met this standard with MED3000’s submission of 22 clinical, biocompatibility, human factors studies and performance bench tests which were rigorously reviewed and accepted by the FDA. The FDA approval is a major de-risking event for the company and it looks forward to updating shareholders on its US commercialisation plans in due course.
Comment: Although no one can say that the green light from the FDA was quick to arrive, now that it has been received it should be the case that FUM can achieve a money spinning USA rollout for shareholders, and of course help those afflicted by ED: there may be an overlap between the two groups.
Dekel Agri-Vision (DKL), the West African agriculture company, provided a May production update for its Ayenouan palm oil project in Côte d’Ivoire. The company said May 2023 was a really pleasing month for the Palm Oil Operation headlined by a 144.9% increase in CPO production compared to May last year which was also a record level of production for the month of May. Whilst CPO prices have softened from near record levels, the current prices remain historically strong and it continues to achieve a local premium to international prices. Overall, the Palm Oil Operation remains well positioned to deliver an excellent H1 2023 outcome.
Comment: 2023 has been the big turnaround year for DKL in terms of the momentum behind the company, and it would appear that it can comfortably begin to accelerate returns for shareholders from now on.
Cobra (COBR), a gold, rare earth and IOCG exploration company, announced rare earth results from Reverse Circulation and Aircore drilling, which will support further Rare Earth Elements resource growth at the company’s unique and complementary gold and REE resource. The company said these drilling results confirm the resource growth potential of its unique rare earth resource and will likely inform a significant resource update, establishing Wudinna as a potential tier-1 rare earth project whose unique proximity to gold mineralisation has the potential to contribute favourably to economics.
Comment: The REE component of COBR’s portfolio continues to be under appreciated, a state of affairs that one suspects will change from this summer onwards. This is especially the case given the way that the current £6m factors in little of what the company is sitting on at Wudinna.
SDX Energy (SDX) said it was aware of rumours concerning its Egyptian business and confirmed that the company has received multiple offers in regard to the sale of its Egyptian assets, which the Board is evaluating. Any proposed transaction would be subject to the usual conditions associated with a transaction of this nature, including but not limited to the satisfaction of a number of condition precedents such as Government and Shareholder approval. The company will be providing further details in due course as well as further information on the plans to return value to its shareholders via organic and inorganic growth.
Comment: If the company has received multiple offers, then it would appear that the rumours (leaks) are bang on the money. All of this may explain the recent tentative share price recovery, and why it may accelerate off the back of today’s revelations.
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.
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