Traders’ Cafe with Zak Mir: EUA, GCAT, PGM, MOS & CTEA via Vox Markets

Although the stock market saying is that elephants don’t gallop, in the case of Russia focused PGM / battery metals group Eurasia Mining (EUA), the past five sessions have witnessed a stampede.

By Zak Mir

The shares are up nearly 150% over the period, after retesting 2021 intraday lows at 14.25p. Apart from the company’s update, it was the fundamental flip from investors focusing on mooted M&A activity around the stock, to look at what Eurasia actually has in the ground. Ironically, the share price rise probably now makes it more likely that a bidder for EUA’s assets will finally emerge from the shadows, if only on a FOMO basis. It also helped that research house ACF Equity Research said that its trading multiples including a Rosgeo JV asset resources estimate suggest a EUA valuation of £7bn plus. The current market cap is still under £1bn.

At the other end of the spectrum in the mining market cap, the arena was stock market newcomer Caracal Gold (GCAT). Here the shares put on 37%, having been highlighted initially before coming to market in the Mail On Sunday on valuation grounds. The rise today reflected both the “priced to fly” listing price, and the clearing of sellers from its former incarnation of Papillon Holdings. Traders have pointed to JORC resources of a £1.2bn valuation, versus the company’s current market cap of still less than £20m.

Sticking with the mining theme, and Pure Gold Mining (PGM) seemed to join in the sector fun, with a 12% share price rise. Here the shares have been in rebound mode, responding belatedly to the update last month in which it said daily throughput averaged 703 tpd for July , a 38% improvement compared to the second-quarter average. The strong performance was attributed to significantly improved stope availability and inventory as a result of investments in development and infill drilling made in the first six months of the year. As far as guidance was concerned for the Ontario, Canada focused group, Gold production for H2 2021 is expected to be in the range of 27 – 32 koz Au with grades and throughputs increasing steadily toward the end of the year.

There is nothing like a decent TR1 to focus minds in terms of a stock that may have been trading sideways for an extended period. In the case of Mobile Streams (MOS), Mark Barry rose up the share register from 4.25% to 5%. This revelation came in the wake of last week’s news that the London-based mobile content provider’s LiveScore service in Mexico, launched at the end of July, has exceeded its August subscriber target by 250%. It has achieved over 3,500 subscribers and estimates the service in Mexico alone should generate at least USD1.5 million over the next three years in additional revenue for the company.

Catenae Innovation (CTEA), the AIM quoted provider of digital media and technology once again saw its shares bounce back 13% from below the key 1p level, from where support has come in frequently in the recent past. Last month the company announced that it has received an order from Shetland Space Centre, a satellite launch site and ground station in Unst, Shetland, which is being renamed SaxaVord UK Space Port. Bulls of the stock are expecting to see more of this type of deal from the company in the hot satellite / space sector.

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Disclaimer & Declaration of Interest
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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