Welcome, the publication is an interactive weekly update on what’s happening with the trending stocks this week. I highlight and comment on the stocks that you want me to highlight or comment on. The more you speak the more I Share! I also provide a round up of Share Talks interviews over the week. If you think that a certain share or person should be mentioned in the next edition let me know my details are at the bottom of the page… If there is anything Share Talk can do to help you let us know!
Last weeks Steve Shares was well followed with the updates on the onshore oil prospects many highlighted the potential issues surrounding the plays in relation to UKOG however as I pointed out the manifesto from the conservatives stated that they will allow as many drills as the pad would allow on onshore exploration projects. We as ever will await the news and the new direction and stance from the government that will hopefully see longer holds and rewards for shareholders. Thank you for your comments and your interactions.
This week I covered Ortac Resources (OTC) and Imagination Technologies Group plc (IMG) The write ups are at the end of this publication as always, but here is the link for the company’s covered via TipTv:
This weeks stocks…
Blenheim Natural Resources (BNR)
A bit of controversy after what looked to be a good rise for holders and news expected around their lithium asset is due, but this week has gone from being positive sentiment to the relative unknown. There has been several RNS announcements from the company surrounding TR-1 notifications of shares. Some were saying that this could be a manipulation of the share price given the delays in the reporting times and holders were thinking that sales in the background may well be that of major holders, within the week the share price has dropped over 30%. is this a good entry point for new holders? Should the company or the broker have released a statement to shareholders about these matters that effect the sentiment?
Premier African Minerals (PREM)
In the lull between discovery and production the share price has held up well, news this week has left a lot of shareholders scratching their heads in regards to lack of share price movement, the company recently announced the metallurgical test work results and a maiden Inferred Mineral Resource Estimate at Zulu of 20.1 million tonnes on only a part of the 3.5km strike length of the Zulu project. The company also announced that the data confirms that the Zulu project has all the hallmarks of a world-class lithium project. Is that the perceived uncertainty, as well as potential funding/joint venture news that surround the company and its perceived low valuation against what could be? Is the company a takeover target in the Lithium world?
Bahamas Petroleum Limited (BPC)
Seems like this has been on the watch list for what seems to be an eternity, and this shows what political uncertainty can do to a shareprice, the updates and actions of the board of directors seem to be very encouraging though in march the Licence Extension news saw that the licence was extended and the Company’s principal work obligation under the renewal was to commence activity on an initial exploration well by April 2018. with the company announcing that it is singularly focussed on commencing drilling operations as soon as possible, and they remained in advanced discussions with various potential funding and operating partners. The Company considers that the licence extension provided by The Government will be an important consideration in further advancing these discussions. The company announced their cash position at approximately $1 million and a reserved cash position of an additional $0.5 million due this year as well with the cost saving measures, including that the Board and senior management have agreed to certain fee and remuneration deferrals including the CEO at 90% so as to preserve cash resources the question of the recent fundraisings should be asked. Is it part of the process that potential partners wanted in place? Is it the calm before the storm as they wouldn’t be able to buy if in a closed period? Is the farm out process therefore quite a time away? What is positive is the actions and alignment of the Board of Directors to shareholders…
Covered several weeks ago the share price has seen a long drawn out bounce that seems to be the start of a potential recovery period, however with the serious fraud case against the CEO is there potential for a bit of volatility in the shareprice? Traders seem to have ridden the bounce up to date since the drops, brokers targets have been coming in thick and fast and have a shorter term target, with the potential upside being over 100% to recent highs could this be a sound recovery play based on the fundamentals of the underlying business? The company’s assets are still intact as are the production levels. Recently they have secured two additional contracts with Petroleum Development Oman for the provision of Engineering, Procurement and Construction Management Support Services for major oil and gas projects. And the second a five-year relationship with Kuwait Oil Company for the provision of specialist technical training and competency development services. The contract valued at more than US$35 million is effective immediately. So business as normal?
Thoughts and comments as always are welcomed. What company’s do you consider undervalued and news items that the market has missed…? Let me know and I will announce via the next issue of Steve Shares…
My thought of the week?
With the markets now settled and the lack of another potential vote on the horizon to disrupt the markets thoughts turn to the longer term with the FTSE. With a potential inflation squeeze on the consumer sector, low price of oil and the Brexit negotiations looming I think there will be a stagnant period of slow growth until post Brexit. With so much uncertainty and the summer doldrums up and coming what are shares or sectors you are looking at for potential upside?
Share Talk round up & Interviews
Bob Smith, Executive Vice President of Mytrah Energy Group. Mytrah’s Final Results for 2016 https://www.share-talk.com/bob-smith-executive-vice-president-of-mytrah-energy-ltd-aimmyt-interview/
Roy Pitchford, Chief Executive Officer of VAST Resources plc. https://www.share-talk.com/roy-pitchford-ceo-of-vast-resources-plc-aimvast/
Andrew Bell Chairman of Red Rock Resources Plc, update around the sales process previously announced on the Tshipi Manganese Mine by Merryl Lynch: https://www.share-talk.com/andrew-bell-chairman-of-red-rock-resources-plc-aimrrr-interview-2/
Vincent Mascolo, CEO, of IronRidge Resources Limited about entering into a conditional agreement with the main shareholders of Tekton Minerals Pte Ltd: https://www.share-talk.com/vincent-mascolo-ceo-of-ironridge-resources-ltd-aimirr-interview/
Share Talk has Presented lots of articles and can be found here https://www.share-talk.com/
TipTv Write ups
Ortac Resources (OTC) is a mining and minerals company who have their own assets and also diversify into investing in other assets. Ortac’s own flagship asset is its gold project in Slovakia. Which has a Jorc compliant resource of 1.32 million ounces in place they are currently under going permitting procedures for that asset. It has also diversified its portfolio through its investments in:
- Andiamo Exploration Limited, Ortac owns 18% in this private company with high-grade gold-copper exploration projects in Eritrea. Recent drills on site have been sent off to be processed and results will be known in a few weeks.
- Zamsort Limited, Ortac has a 14% ownership in this private company with copper licences in Zambia. They are hoping to bring online from a licence holder into an explorer and producer. They have already stockpiled 33,000 tons of ore at 3.5% copper equivalent ready to sell via off take agreements they already have in place.
- Casa Mining Limited, a private company with gold assets in the Democratic Republic of Congo
They have been slowly adding percentages of these projects into the company and the one that stands out is the Casa Mining Situation and it looks like it’s going to be a busy few months for them as they start their drilling program and hopefully a steady stream of positive results can expand on the gold resource in place. The drill program will expand the resource from their current 1.2M oz at an average of 1.8g/t. The interesting thing is that they have only explored a very small area of the resource. They have a 30 year Licence granted over 40km strike of explored prospective geology in E.DRC so a massive potential upside on just this play. Versus a market cap of just over £5MN and funding in place seems a good prospect. Those looking at the long term graph should be aware that there was a share consolidation back in March so it has not done a 10 fold increase…
Imagination Technologies Group plc (IMG)
The second stock I want to cover has had a bit of a turbulent time due to one division that has had agreements with Apple under scrutiny, Imagination Technologies Group plc (IMG) are a technology based group with leading multimedia, processor and communications technology. Back in April they were notified by Apple, its largest customer, that Apple is of a view that it will no longer use the company’s intellectual property in its new products in 15 months to two years time, and as such will not be eligible for royalty payments under the current license and royalty agreement.
Apple has used Imagination’s technology and intellectual property for many years and it has formed the basis of Graphics Processor Units in Apple’s phones, tablets, iPods, TVs and watches. Apple has announced that it has been working on a separate, independent graphics design in order to control its products and will be reducing its future reliance on Imagination’s technology. This technology is very hard to replicate and thus the company believes that they cant substantiate how apple can create this technology without violating Imagination’s patents, intellectual property and confidential information. The evidence has been requested by company but Apple declined to provide it. There have been discussions but nothing came of the initial discussions and so they have put in place. This could be a recovery play, but the other products in their line up are based around the Virtual Reality space and the potential future of the business still seems to be positive, the accounts are due in early July and I think we could see an upside in the share price based against its current levels…
Let me know what should be in next weeks article and I will report on the shares that matter to you…
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