The Telegraph reported that Treasury borrowing has already shot past official forecasts made in the Budget in a blow to Rachel Reeves’s plans to ramp up spending. Britain has already borrowed £4.1bn more so far this financial year than was projected by the Office for Budget Responsibility (OBR) in its updated estimates in October, official figures show.
Comment: This is clearly nothing for the Government to be concerned about. Even though 10,000 millionaires have left the country since the summer, there are plenty of ordinary middle class people (who are not working people) to foot the bill, who cannot leave the country because of work or their children being at private school.
Tap Global Group (AQSE: TAP), the FinTech company bridging the gap between traditional finance and blockchain technology, announces record H1 revenues and positive EBITDA in the first half of the current financial year from 1 July – 31 December 2024, reflecting product improvements, market sentiment and fee calibration. Revenue for H1 2025 is expected to be approximately £1.80 million (H1 2024: £1.29 million), an increase of approximately 40% on the equivalent prior year period. Notably, the monthly revenue in December 2024 of £451,000 was almost double the revenue in the first month of the H1 2025 period, signalling the strong trading momentum being carried into the second half of the financial year. The Company expects to report a positive EBITDA for H1 2025.
Comment: It should be said that if Tap cannot flourish in the present environment it never will, and thankfully there are signs that it is doing so. The real kicker here is the expectation of positive EBITDA early this year. The shares should on this basis already be up at their historic 6p highs.
Guardian Metal Resources (GMET), a mineral exploration company focused on tungsten, copper, silver, gold and lithium within Nevada, USA, is pleased to note the support outlined in the Executive Order signed on January 20, 2025, by the new president of the United States, Donald Trump, titled “Unleashing American Energy”. The landmark policy demonstrates a renewed commitment to promoting domestic energy and natural resources, directly supporting Guardian Metal’s ultimate mission of mining tungsten, a key metal essential for modern defence and civilian industries, on U.S. soil. A link to the Executive Order is provided below:
https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-american-energy/
Comment: Given that the new President is bringing his “drill, baby, drill” slogan from day one, this should be the perfect time for GMET, with the prospect of non-dilutive US government funding the icing on the cake.
Ananda Pharma (AQSE: ANA), a Company focused on the development of cannabinoid based therapies for the treatment of a range of complex conditions, announced that to kick off 2025, Melissa Sturgess, CEO, will provide a live update presentation and Q&A session via the Company’s InvestorHub on Wednesday, 29 January 2025, at 12:30 GMT. The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the webinar page up until 27 January 2025, 12:30 GMT, or at any time during the live presentation. Investors can sign up to the webinar for free via: https://investors.anandapharma.co.uk/webinars/LeoVy6-2025-kick-off.
Comment: ANA has already proved itself to be a company in a hurry and keen on comms over the past year, so it is understandable that it is set to hit 2025 running with the forthcoming webinar.
Mindflair (MFAI), the company investing in next generation technology focused on AI, announces the proposed adoption of a new Share Option Scheme and the issue of options. MFAI said the adoption of the Scheme underscores the Company’s commitment to the aligning of the interests of its management team to those of its shareholders and to compensate the management team for the waiving and reduction of cash remuneration over the last 12 months in order to conserve the cash resources of the Company over a difficult period in financial markets. Furthermore, whilst not being a requirement, the Company has specifically made the Scheme subject to shareholder approval which is consistent with the Company’s ethos of working closely with and in the interest of its shareholders.
Comment: The first point here is that the options scheme does rather suggest that MFAI expects its share price to rise materially this year, as it is already showing signals that this could happen. The second point is the surprisingly generous gesture to refer the scheme to shareholders.
Itaconix (ITX), an innovator in plant-based specialty polymers used to decarbonize everyday consumer products, is pleased to provide a trading update for the year ended 31 December 2024 which is in line with expectations. Unaudited 2024 revenues of $6.5 million and an increase in unaudited gross profit margins to c. 35% from 31% in 2023. reflect the Company’s success at adjusting market positioning in 2024. ITX said it has ended 2024 in a strong position, with trading in line with expectations and continued progress in diversifying its revenues. Its growth in Europe, customer diversification, and the development of our SPARX™ program underpin its optimism for 2025.
Comment: ITX is certainly shaping up to be a serious international, scalable business, which is relatively immune to swings in the economy. That said, we await the market coming to this realisation, which so far it has only briefly done.
Greatland Gold (GGP) provide an update on its activities for the month of December 2024. GGP said it was pleased to have made a strong start to production at Telfer. Total production of 33,882oz AuEq across the 27.3 days of Greatland’s ownership equates to a monthly production rate that is approximately 33% higher than the average contemplated by Greatland’s initial Telfer mine plan (426,000 ounces of gold equivalent2 over 15 months, or an average of 28,400oz gold equivalent2 per month). The December month outperformance is encouraging, however it is noted that the period was relatively short and the mill grade was higher than the Telfer mine plan average.
Comment: GGP may quite rightly be pleased with its activities at Telfer, but so far this emotion has rather surprisingly been shares by the market. Reaching the Promised Land should have meant the shares were already well over 10p, rather than 6p and something of a damp squib. A refresh of the messaging seems in order.
Sovereign Metals (SVML) announces the results of an Optimised Pre-feasibility Study (OPFS) for its Kasiya Rutile-Graphite Project (Kasiya or the Project) undertaken following a strategic investment by Rio Tinto Mining and Exploration Limited (Rio Tinto) in 2023, which established a joint Technical Committee to advance the development of Kasiya. SVML said the OPFS has reconfirmed Kasiya as a leading global future supplier of strategic critical minerals outside of China. The OPFS proposes a large-scale, long-life operation to deliver substantial volumes of natural rutile and graphite while generating significant returns.
Comment: Shares of SVML were up 40% last year, and have a market cap approaching £250m, so this is a serious stock market contender already. That said, given the quality of the newsflow / resource, it would not be wrong to ascribe a much higher valuation to the company as it proves up what is underground.
Pantheon Resources (PANR) an oil and gas company developing the Kodiak and Ahpun oil fields in close proximity to pipeline and transportation infrastructure on Alaska’s North Slope, will be presenting at the Sequire Investor Summit today. The Company will be outlining results of log, core and cuttings analysis from the Megrez-1 well and a consequnetal anticipated upgrade of resource for Ahpun’s Eastern Topse and an update on its flow testing plans. PANR said the preliminary assessment of the Megrez-1 well results already far exceeds pre-drill estimates. The Megrez structure appears to have trapped a larger pool than we expected. The additional prospective zones in the Lower Sagavanirktok Formation, identified above the Prince Creek Formation, provide further upside that it had not previously considered.
Comment: Another company which should benefit greatly from the “drill, baby, drill” mantra which started this week. Another positive news such as revealed today should have a disproportionately greater effect than during the Biden years.
IQ-AI (IQAI) announced an operations update. It said it was to focus on the relevance of AI to our business, describe ongoing product development utilising AI in 2025, and provide an update on the Phase One clinical trial. Overall, radiology leads the way in FDA approvals for AI-enabled products as the FDA has increased efforts to keep pace with the advancements in AI technology. The directors believe IQ-AI, through its subsidiary, Imaging Biometrics, LLC, is in a unique position to lead this transformation for neuro-oncology in 2025 and beyond.
Comment: It is a shame the company does not do more to explain the science / technology behind what it is doing, even though one would have to concede the average small cap punter might be rather out of their depth if it did. But perhaps just name-dropping the FDA does the trick anyway.
Tiger (TIR) announced that Bixby Technology Inc, its wholly owned subsidiary has formed its maiden incubation partnership with the founder of a sentient AI Agent called AROK (www.arok.vc). AROK is an automated venture capital agent project based on Artificial Intelligence that uses sophisticated automated methods to support and innovate on investments in the meme coin space. It has over US$1.27M in meme coins under management. TIR said its model is to incubate and scale up ambitious commercial ideas using utility meme coins to recognise the value we add. AROK is the perfect first deal to showcase our approach.
Comment: It can be seen that TIR is wasting no time in the wake of its tech focused rejig, something which should ensure that the recent nascent share price recovery continues.
Firering Strategic Minerals (FRG), an emerging quicklime production and critical mineral exploration company, is pleased to provide an update regarding production of its key ancillary product, aggregate, at its quicklime project in Zambia. Aggregate production has reached nameplate capacity in line with strategy to create multiple revenue streams. FRG said while its primary focus remains on scaling up production of our core quicklime product to reach full capacity by year-end, it is equally pleased to have already achieved nameplate capacity for aggregate production.
Comment: Perhaps rather unfairly, shares of FRG have pulled back from their November peaks, something which belies the ongoing operational progress the company is making.
Amaroq Minerals (AMRQ), an independent mining development Company with an extensive land package of gold and strategic mineral assets across Southern Greenland, is pleased to announce that it has been awarded the Johan Dahl Land licence (MEL 2025-17). This newly acquired licence expands Amaroq’s footprint in the South Greenland Copper Belt, a region demonstrating high potential for copper-gold mineralization, complementing the Company’s existing portfolio in the area. The Johan Dahl Land licence encompasses an area of 666.51 km², increasing Amaroq’s total land holdings to 6,800.1 km². AMRQ said the award of the Johan Dahl Land licence and the promising early exploration results reaffirm Amaroq’s commitment to unlocking Greenland’s critical mineral potential. The South Greenland Copper Belt is rapidly emerging as a significant exploration district, and our work at the Ukaleq Target has already demonstrated its significant resource potential.
Comment: One can see from AMRQ why President Trump is keen to get his hands on Greenland, and it is perhaps surprising that the company along with peers in the territory have not had an extra bump in valuation off the back of such speculation.
Ariana Resources (AAU), the AIM-listed mineral exploration and development company announce the full-year production results for the year ended 31 December 2024 for the Zenit Mining Operations in Türkiye. Zenit is 23.5% owned by Ariana through its shareholding in Zenit Madencilik San. ve Tic. A.S. AAU said Zenit has now recorded eight years of guidance-beating production and, since the beginning of last year, has been actively mining across its two operations: Kiziltepe and Tavsan. With the strong gold and silver price environment of 2024, Zenit recorded the second-highest annual revenue ever, completing the year with US$54.7 million.
Comment: It has been quite an achievement for AAU to get its share price back to year lows in the current environment, and with its share in booming Zenit. But somehow AAU has managed it.
ENGAGE XR (EXR), an immersive technology company, will today unveil its comprehensive education offering for the first time at the world-leading EdTech conference, Bett 2025, in London. Working in partnership with Meta and OptimaED, the US-based, Education Experience Company, the Group will showcase the ENGAGE XR package that has been specifically developed for the K12 education market (kindergarten to the age of 18).
Comment: The kicker here is clearly the tie up with Meta, something which explains the initial strong rally for the shares today after a long time in the wilderness.
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.
