Stocks that may or may not make the grade in the papers
There are few pleasures in life – of the ones still left to us – greater than a speeding ticket RNS which fails to dampen the share price of a company (the reason for the exercise). This was the case as far as Alien Metals (UFO) as the minerals exploration and development company, which highlighted the recent acquisition around Elizabeth Hill, as well as the field team’s success in the Hamersley. The shares rose another 0.5p to 2.42p, having put in a low of 0.71p at the start of the week.
Fast-growing pharma services group Open Orphan (ORPH) indicated that it is set to become even faster-growing after it released a statement re further media comment. The company said it remains in advanced negotiations with the UK Government and other partners for a Coronavirus challenge study in the UK. The market is clearly waiting on a contract to be signed with a certain degree of anticipation, and the shares rose 1.75p to a new all-time high of 28p.
Shares of Bezant Resources (BZT) continued their recent rehabilitation with a 33% share price rise. This comes after a busy couple of weeks for the mining minnow which has included an update on its transaction with Mining and Minerals Industries, the commencement of exploration work over the Hope Copper-Gold Project in Namibia, and rebuffing Zambia media reports regarding the company.
Sticking with the mining sector and it was the turn of Wishbone Gold (WSBN) to deliver its interim results. The highlights here after the restructuring and funding earlier this year has been to leave Wishbone in a strong position to complete its exploration programs and with cash to pursue additional expansion. Indeed, judging by the position on 30 September 2020 net assets were US$1.582m with the balance sheet strengthening post the period.
Investment group Braveheart (BRH) was able to please its investors in the wake of announcing proof of concept for Paraytec’s rapid COVID-19 test in terms of the Capture & Signal Generation Modules. This followed an announcement on October 5th regarding the Optical Detection System. The result of this was a 25% rise in the stock, as CEO Trevor Brown saluted a “phenomenal achievement for all concerned.”
Although it was a massive end of week performance for many of the mining minnows, Mkango Resources (MKA) stood out with a 46% rise. This out of the blue rally comes in the wake of the widely reported attractions of rare earths, and especially the shortages we can expect going into the next decade.
JKX Oil & Gas (JKX) was a 25% riser, as the effect of traders mopping up recent weakness in the stock kicked in. Fundamental drivers here said to be a 40-60% free cash yield on the forward gas curve, with the company regarded as being in its best position in terms of production and balance sheet. In addition, there was the excitement of a new shallow well being drilled this month, with an update on this expected in November.
Ferro Alloy Resources (FAR) was in the focus of some early bird investors, holding above recent 8p support. This was off the back of comment regarding the result of an imminent feasibility study, the possibility of a £2bn NPV, a £1.71 broker note price target, a CEO who holds 20% of the shares looking to a £10 price target, and the prospect of revenues of £245m per annum. The IPO of Ferro Alloy was at 70p versus the present 8.75p share price.
Shares of MetalNRG(MNRG) soared 40% as the market continued to savour last week’s oil & gas deal, and recent ShareTalk interviews with the company. The company said that following completion of the acquisition and at current modest production, Sunswept was expected to be net cashflow positive at circa $43 bbls/day which represents the current market level.
Also in focus with the avant garde traders was Anglesey Mining (AYM). Here the shares were unchanged at 1.6p after peaking at 2.8p earlier this month. The drivers for the bulls here were said to be a 500% resource upgrade to £400m versus a market cap of just £3m. At the start of the month the company said that its Parys Mountain Preliminary Economic Assessment was in progress, with QME mining technical services work due.
COVID-19 data test technology platform group Catenae (CTEA) saw its shares rise 16% to 2.85p in the wake of JV news with BHA-Medical. The goal here is to deliver a COVID-19 test monitoring system for the likes of governments, businesses and organisations.
(The opinions expressed here are those of the author, a columnist for Share Talk.)
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