Trader’s Cafe with Zak Mir: JAY, POW, EUA, AVO & PHE via Vox Markets

Even in current somewhat curmudgeonly market conditions, it is the case that even with a delay the good news can and does feed into the share price.

By Zak Mir

This has been the case so far this week as far as Bluejay Mining (JAY), where the mineral exploration company focusing on critical materials for electric vehicles delighted traders with news of a joint venture agreement with KoBold Metals to explore the Disko-Nuussuaq project in Greenland. The sizzle here on Monday was that investors in KoBold include Breakthrough Energy Ventures, a climate & technology fund overseen by Bill Gates, and whose investors include Michael Bloomberg, Jeff Bezos, and Ray Dalio. This is a story that will be difficult to beat in terms of the highlights of 2021.

One of the golden rules of detecting a situation on the market which is fundamentally solid is when the management of a company have “skin in the game” and are happy to add to it. This is what we have been treated to at exploration group Power Metal Resources (POW). Value Generation Limited a owned by Paul Johnson, Chief Executive Officer of POW, has provided an irrevocable undertaking to exercise warrants to subscribe for ten million new ordinary shares in the Company of 0.1p each. All of this adds to the chunky position Johnson already has of over 5%.

While one could say that investors in Eurasia Mining (EUA) may have been somewhat distracted by M&A matters at Russia focused palladium, platinum, rhodium, iridium and gold producing company, it is clear that the company is keen to get on with the job in terms of being a significant mining play. It announced that three plants have now been successfully commissioned at West Kytlim. The first plant is located on the border of Klyuchiki area and Bolshaya Sosnovka area to process the material mined from both these areas, while the second and the third plants are located on the border of Malaya Sosnovka and Bolshaya Sosnovka areas to process material mined from Bolshaya Sosnovka. The company said it is consistently delivering on its promises in terms of expansion plans, cost reduction and last, and sustainability, with all of this cementing its position as a low-cost producer.

Despite what some might say, one of the main reasons for listing on the stock market is to raise money on the secondary market, something which can accelerate a company’s growth in a highly efficient manner. Indeed, when the market agrees that a company is doing the right thing at the right time, one can actually see the share price rise, rather than fall. This is what has so far happened at proton therapy systems for cancer treatment group Advanced Oncotherapy (AVO). Its largest cash call to date comes in the form of an equity fundraise of £37.4 million at a price of 40p per share and will be used to purchase the remaining components of the first LIGHT system. Shares of AVO closed up 8% at 38.5p.

Shares of Powerhouse Energy (PHE) seemed intent to prove that technical analysis can work and to decent effect. The waste plastic to energy group saw its stock rise 17% after falling to an oversold Relative Strength index value of 25 at the start of the week. Over the past couple of years on three occasions when the shares were as oversold, there have been subsequent rallies of 50% and indeed, much more. Earlier this month, prior to the company’s AGM, PHE announced that announced that its partner, Peel NRE had signed a letter of intent to supply hydrogen to a network of hydrogen refuelling stations, proposed by UK-based hydrogen fuel station developer Element 2.

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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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