St Brides Partners Weekly Brief, Saturday 30th January 2021

We have finally survived January (nearly!) – say goodbye to the January blues and leave those resolutions behind as we make it through to the second month of the year.

Not only has this first month had its usual never-ending quality but between lockdown and a string of eventful news every week, it seems to have come to a particularly crawling halt this year. We end the month with Virginia Woolf’s 139th birthday at the start of this week, and her renowned stream of consciousness style of writing feels particularly relevant as we continue to be kept company by our own these days.

And although we may yearn to be like her titular character Mrs Dalloway going about our day, meeting and talking to a host of people, to then throwing a party in the evening (a long forgotten relic!), we are perhaps more akin to Mary in A Room of One’s Own – struggling to make space in our homes to do…well, everything! Woolf sends us some words of encouragement, from nearly a century ago, to persevere with working from home: “That so to work, even in poverty and obscurity, is worthwhile” – so perhaps the Zoom calls and shared documents aren’t so bad after all. However, we have a whole year ahead of us full of potential, and with vaccine rollouts and spring on the horizon, the year is definitely looking up.

Client News 

Kibo Energy Plc (AIM: KIBO) has announced that MAST Energy Developments Plc has approved its pathfinder prospectus to seek admission of its ordinary shares to the LSE by way of a Standard Listing and is commencing its roadshow to raise £4.5 million with an initial target market capitalisation of approximately £20 million. MED will remain as a subsidiary of Kibo after listing, with Kibo holding at least 55% of MED on the day of Admission. Following the admission, MED and Sloane will be in a position to develop its portfolio at scale and pace and advance rapidly toward revenue generation.

Jangada Mines Plc (AIM: JAN) noted an announcement by ValOre Metals Corp., in which it holds 17.68% interest. ValOre has commenced a follow up rhodium assay program of historical drill core samples from its wholly owned Pedra Branca Project in Brazil. Additionally, Jangada announced that it has secured a strategic shareholding position in Fodere Titanium, which is focused on producing titanium dioxide and vanadium from waste materials. The investment stands at 10,000 shares, which represents 3.6% of Fodere’s current capitalisation. Jangada continues to develop into a strategic player in the critical area of the evolution of green technologies. 

Another busy week for Dekel Agri-Vision Plc (AIM: DKL).  The West African focused agriculture company announced a c.€900,000 increase in the first tranche of its c.€15.2 million bond facility, bringing the total issued to €5.9 million. This follows the acceptance by the Ivorian regulator of a late request from a prominent local bank to participate in the new bond. The bond forms part of a long-term refinancing programme to extend Dekel’s debt profile and support the roll out of its strategy to become a multi-project, multi-commodity agriculture company.  Dekel also successfully completed an oversubscribed Fundraising, comprising a Placing, Subscription and PrimaryBid Offer.  In all £3.5 million has been raised from new and existing shareholders, including directors, at an Issue Price of 5p per share.  A portion of the funds raised will be used to increase Dekel’s stake in the Tiebissou cashew project to around 70%.  Tiebissou is on course to become the Company’s second producing project in Q2 2021 alongside the established palm oil operations.  

FastForward Innovations
 (AIM: FFWD) has raised £2.1 million at 8.5p per share with new and existing shareholders. FastForward has to date experienced largely positive developments in this financial year (to 31 March 2021) as they focus on delivering their core objective of providing investors with exposure to disruptive growth opportunities, in particular medical cannabis, that have near-term re-rating potential and would otherwise be inaccessible. The proceeds from the placing will be used to fund a number of opportunities in line with this investment strategy.

The new shareholder to the register of Jubilee Metals Group Plc (AIM: JLP) was revealed this week as Jupiter Asset Management holding some 3.65% of the company. This addition to the share register of a top institutional investor is an endorsement of the progress Jubilee is making on its strategy and the opportunity for shareholders going forward. In addition, Colin Bird, Chairperson, and Leon Coetzer, CEO, increased their shareholdings in Jubilee this week.

Europa Oil and Gas Plc (AIM: EOG) held its AGM this week and took the opportunity to issue a statement, detailing how the Wressle oil field in North Lincolnshire is set to transform its production and financial profile once it is brought into production.  Wressle, in which Europa holds a 30% interest, is expected to come on stream in the near term at an initial rate of 500bopd which would more than double Europa’s existing production to over 200bopd.  Requiring an oil price of less than US$18 per barrel to break even, production at Wressle is expected to be highly profitable at today’s US$50 plus oil prices.    Wressle is not the only project within Europa’s portfolio where progress has been made: its offshore Ireland licences have undergone a decisive pivot to gas in the Slyne Basin while offshore Morocco over 20 prospects and leads have been mapped which, in aggregate, have the potential to hold in excess of one billion barrels of unrisked oil resources.

Scotgold Resources Limited (AIM: SGZ) is progressing with ramping up production at the newly commissioned Cononish Gold and Silver Mine in Scotland as well as its exploration activities on the Cononish Project and Grampian Project. The exploration programme is focused on increasing the mineral resources in the surrounding area, further delineating existing prospects, and making new discoveries. Encouraging results have been received and further follow work is planned.

Emmerson Plc (LSE: EML) provided its 2020 Sustainability Summary with a forward looking view on the development and construction of the Khemisset Potash Project in Morocco. In line with its phrase ‘Doing the right things in the right way’, the highest standards have been adopted in analysing the potential impacts on people, local communities, and the environment. The project will contribute to enriching agricultural soil to provide affordable food for the world’s population, and will also have a positive impact on the local area whilst being a positive catalyst for economic development in Morocco. Emmerson has an ongoing social license to operate and are committed to keep upgrading its standards as it prepares to build and operate the project.

Oracle Power Plc (AIM: ORCP) has commenced a field based exploration programme at the company’s second gold project, the Jundee East Gold Project in Australia, to determine the most effective method to define targets within the project. The Jundee East Project represents a previously unrecognised greenstone belt covering an area of 80km2, proximal to the Jundee Gold Mine, host to previous production and resource of >7Moz gold. Oracle hopes to begin to unlock substantial value for shareholders as it progresses these assets and the project’s prospectivity potential.  

Contango Holdings Plc (LSE: CGO) provided an update on the recent and upcoming planned activities for the Lubu Coking Coal Project in Zimbabwe. It has continued to advance well, despite Zimbabwe’s national lockdown, and has recently been inspected by the EMA and access upgrades have been completed. A meeting with BDC has been scheduled for next month to outline the two pit locations ahead of development. Discussions with the proposed mining contractor is expected to be finalised ahead of opening the two pits in February and will enable ongoing offtake disccussions to be finalised, as well as first revenues to be provided. Contango is well positioned to benefit from the recent significant uplift in global coking coal prices.

Tirupati Graphite Plc (LSE: TGR) has secured its first commercial contract for the Tirupati Graphene and Mintech Research Centre, in order to provide mineral processing technology development services with Optive Resources Limited to develop mineral processing technology solutions for its Marela Project. This represents the start of first revenues for its third business, joining its already revenue generating assets. This aligns with its strategy of obtaining early stage diversified and independent revenue streams across all three business units.

BlueRock Diamonds Plc (AIM: BRD) reported the sale of a 14.8 carat diamond for $167,000 that was recovered in December. An additional 8.7 carat diamond that was announced at the same time has sold for $37,000. This is the third large stone recovered in Q4 2020 with an individual value more than $50,000. The general results of the tender through which these were sold has been very positive and diamond prices are recovering well.

You may have missed it… 

Listen to Jubilee Metals CEO Leon Coetzer talk with DirectorsTalk on the growth achieved in 2020.

Take a look at Emmerson Plc’s presentation hosted by InvestorMeetCompany.

CEO of Tirupati Graphite Puruvi Poddar spoke with Proactive Investors on the progress being made at the TGMRC in India.

Vast Resources (AIM: VAST) released its unaudited interim report and financial results for the period of 1 May 2020 to 31 October 2020.



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