Trader’s Cafe with Zak Mir: CNIC, COPL, CCZ, DVRG, GAL, MXC, OBE, ROCK, UOG, ZPHR via Vox Markets

The clue has been in the name as far as the potential for Castillo Copper (CCZ) being able to ride the coat tails of the copper / EV boom. However, so far the shares remain off their January peaks towards 4.5p.

By Zak Mir

This state of affairs may be set to change in the wake of news that the base metal explorer focused on copper across Australia and Zambia latest results. It reported the initial assays for drill-holes BO_315-317RC returned up to 9.19% Cu and verified extensions to known mineralisation at the Big One Deposit in Mt Isa’s copper-belt. The company also said visual inspection of samples from drill-holes BO_322-27RC identified further copper mineralisation, with the best intercept of 26m found in BO_326RC.

Unlike many of its peers, Galantas Gold (GAL) has seen its share price triple since the start of 2021, despite the gold price being mixed at best during the period, anchored either side of $1,800. Investors may have more to look forward to as the company announced the imminent commencement of an initial Phase 1 surface and underground exploration program comprising of 4,000 metres of diamond drilling at the Omagh gold mine in Northern Ireland. Drilling will focus on the Kearney and Joshua veins, two of many high-priority targets on the Company’s land package. Underground drilling on the Kearney vein will test deeper extensions of mineralized dilation zones targeting higher widths of mineralization within the vein.

Domain names and web services group CentralNic (CNIC) once again proved that the pandemic has at least been a boon for companies servicing the online space. It announced that it had achieved $90 million of revenue, representing a 63% increase of reported revenue and a record organic growth of c.25%. during the three months ended 30 June 2021. CentralNic attributed the improvement to a period of significant investment. The company therefore expects to report revenue of c.$174 million and adjusted EBITDA of c.$20 million for the first half of 2021, reflecting growth across all business lines. This represents a 56% and 32% increase respectively, with adjusted operating cash conversion well in excess of 100%.

Gold and base metal exploration company Rockfire Resources (ROCK) announced that it has successfully raised £1.0 million with an institutional investor, at a price of 0.8p. The company said will facilitate an expansion and acceleration of its drilling programme with additional capital from the placing enabling sustained drilling at its Copperhead and Copper Dome porphyry projects in Queensland.

One of the reasons that companies have been flocking to the US OTCQB market in the recent past has been to enlarge the pool of liquidity in their stock. Interestingly enough, with the obvious liquidity in its stock already, it may be the case that Rocky Mountain focused oil and gas play Zephyr Energy (ZPHR) is one of best candidates for this move given the geographic location of operations. The company said it believes that dual trading on AIM and the OTCQB will provide enhanced investor benefits, including easier access for investors based in the U.S.

It was yet another busy update for environmental and life science group DeepVerge (DVRG), which develops and applies AI and IoT technology to analytical instruments for the analysis and identification of bacteria, virus and toxins. It said the additional investment from the recent £10m placing has facilitated the completion of the laboratories upgrade in York, UK, to provide capacity for processing up to 20,000 Skin Trust Club home test kits per month, for the UK market. DeepVerge also said preparations are underway for the same volume for the US market, expected to launch in H1 2022. In terms of the Microtox® PD wastewater project, first data transfer of detection of SARS-CoV-2 via Microtox® PD units has completed with unidentified clients from installed units in undisclosed locations. As well as current single pathogen target chips, multiplex chips to begin testing for multiple targets that include SARS-CoV-2, Norovirus[ii], Pepper mild mottle virus (PMMoV)[iii] in wastewater are also underway. Looking at the China Resource MOU announced in April, the timeline of signing an agreement has been extended into Q4, 2021 due to additional elements being added to the proposed agreement.

MGC Pharmaceuticals (MXC) served up a quarterly activity report in which June quarter delivered record sales of $945,000 in revenue, comprising $665,000 of phytocannabinoid medicines. A second wholesale purchase order was received from leading European nutraceuticals producer and distributor, Swiss PharmaCan AG, for ArtemiCTM amounting to a total of $1,000,000 in revenue upon full delivery of product, expected during the September quarter.

There is nothing more encouraging than a TR1 with an increased stakeholding by a significant investor. Indeed, in the case of Aquis listed boutique wealth manager Oberon Investments (OBE), it was the turn of serial investor, and some might say one man stock market, Chris Akers to become notifiable with a 3.58% stake. In the past such disclosures by Akers have led to the companies in question becoming more high profile, any subsequent share price rises notwithstanding. In May, Oberon completed the acquisition of adviser and wealth manager Smythe House, three months after its admission to trading on Aquis, with CEO Simon McGivern describing this as the “final piece of the jigsaw.”

There was an operational update from United Oil and Gas (UOG). Here the highlights were that Q2/21 group working interest production averaged 2,937 boepd, yielding a H1/21 average of 2,730 boepd, ahead of H1 guidance of 2,300 to 2,500 boepd and in line with full-year guidance of between 2,500 and 2,700 boepd. In its H1 drilling campaign the Abu Sennan Licence continued to perform above the company’s expectations. The company said it would progress the Jamaican farm out process whilst optimising further value from the rest of the portfolio.

Sticking with the same space and Canadian Overseas Petroleum (COPL) said production averaged 1,220 bbl./day oil (gross) 706 bbl./d oil net for the term of 16 days until 31 March 2021. Current oil production has increased 50% to approximately 1800 bbl./d (gross) due the commencement of increased gas injection volumes on April 1 at the Company’s Barron Flats miscible flood project. While the shares currently remain suspended following the giant killing Atomic Oil and Gas acquisition, COPL said that with the completion of the Q1 financials, it can now work towards finalizing its prospectus ahead of readmission to the LSE.

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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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