Traders Cafe with Zak Mir: AMGO, EUA, FDBK, KOD, NQM, PRD, PREM & ZOE via Vox Markets

Freedom Day became freedom to lose money day, or perhaps just cash in some chips for the summer holidays before the next lockdown.

On this basis the risers of the day certainly stood out. Kodal Minerals (KOD) has been a firm market since the company’s update in June. Then it reported high-grade surface results from its Dabakala gold project in central Ivory Coast and having the drill rig secured at Fatou prospect in Mali, drilling was expected to commence by the end of June. Traders were presumably point to the double-digit percentage share price rise on a dire day for the stock market implying that good news was leaking, or at least imminent.

There were those in the market who were suggesting that after being beaten down from over 22p at the beginning of last month, shares of Predator Oil & Gas (PRD), now standing at 5.5p might have been punished a little too hard in the wake of its Moroccan well drilling reported at the start of July. With the shares now as oversold as they were in March last year when they were trading at 1.2p, and the latest £1.3m placing out of the way at 5p, it may be that this situation has been kitchen sinked. In terms of the operational update today the company said MOU-1 was safely and successfully drilled within its pre-drill budget estimates and completed for proposed rigless testing. Predator’s priority is to incorporate the results of the MOU-1 well into the evaluation of the MOU-4 Target to optimise the location for a step-out well.

On the Aquis market, green mining company, NQ Minerals (NQM) reported its Second Quarter 2021 production and provisional unaudited operating results from its wholly owned subsidiary Hellyer Gold Mines. Here mining and processing operations realised provisional Second Quarter 2021 gross revenues of A$19.8m, operating profits from operations of A$11.0m and net income of A$5.7m for the period from 1 April 2021 to 30 June 2021. The major capital works programme at Hellyer to construct the first stage of the new tailings storage facility was completed at a capital cost of A$16.4m. Perhaps what could additionally the game for NQ Minerals though, was also in the latest update. The company said prospectus work is well advanced for the proposed listing on the London Stock Exchange, and it remains its intention to seek a listing on the LSE once restructuring of the firm’s debt has been achieved.

Shares of Eurasia Mining (EUA) managed to remain largely flat on the day, while many of its sector peers were being bruised by the sellers. Speculation regarding the contents of the next RNS from the company remains optimistic. This is in the wake of the appointment of a former Rosgeo MD to Eurasia, a recent valuation of the JV assets by a Rosgeo representative in an interview at $100bn plus in-situ value, and Alexei Churakov reported by Bloomberg to be adding to his position. Set against this positive backdrop, expectations appear more concrete than normal stock market talk.

Another bear target was illustrating how as the stock market sells off, there can actually be short covering leading to a squeeze higher. CBD specialist Zoetic (ZOE) saw its shares up 9%, with the stock bouncing back above the 50p level and a £108m market cap. If some of the shorters are to be believed this means they are currently around £100m offside on their valuation Recent newsflow at Zoetic has related to the business update at the beginning of the month which included the Chill-brand CBD smokes launch in the UK.

One would also assume that the rise in lender Amigo (AMGO) shares was also short covering, given that as we await the overall destiny of the company via the courts and beyond, we are due full year results on Thursday July 22nd. It will be interesting to see how much more of a squeeze there may be for the stock as bears decide discretion is the better part of valour to add to the latest 6% rise.

There was a 9% jump at Premier African Minerals (PREM) once again perhaps betraying short squeeze activity. That said, last Wednesday the company announced that drilling at its Zulu Lithium project in Zimbabwe was underway, with a second drilling rig expected over the weekend. Premier said that despite the Covid-19 related lockdowns and travel restrictions in the South Africa it is making progress in the drilling program that is central to Zulu’s Definitive Feasibility Study.

Medical imaging technology company Feedback (FDBK) bounced back 12%, in the wake of Friday’s news which said that CVS Group, a provider of integrated veterinary services, has appointed Bleepa as its clinical communications platform for CVS’s Equine Division. Feedback’s Bleepa is a medical imaging communications app, providing communications between front-line clinicians and teams. The app is to be rolled-out across 20 equine specialist surgeries.

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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