Firebird Metals
There is a saying that you cannot teach an old dog new tricks, or perhaps more accurately, beyond a certain age, not much at all. This is partly because the dog in question might feel they already know it all, or even more accurately, because they do not want to learn.
This week I attended a lunch presentation extolling the virtues of battery metals, and more particularly manganese. Such a presentation did not seem set up to be very memorable, or useful. Instead, courtesy of a brilliant speaker, an expert in his field, the presentation proved to be a sizzling one. The food was not bad too. Off topic the highlights were the way that in America there are people scared of saying in public anything which might offend Trump and that could be career destroying. In China one should obviously not mention Tiananmen Square. Obviously, over here one cannot criticise mass immigration or the NHS. So in a way, freedom of speech has died everywhere. On topic, the conclusion of the presentation was ASX listed Firebird Metals (ASX:FRB) could be a significant winner of current developments in the battery space. We shall see.
Empire Metals
Earlier this month on September 4, shares of Empire Metals (EEE) peaked at 83p. The market cap was towards £500m. Yes, half a billion sterling, and as the company said on the day, “a generational opportunity rapidly moving from exploration success toward commercial reality.” Now, I am someone who is the naturally a bull, naturally positive, at least when it comes to the stock market.
For instance, I was quite happy when Smarter Web (SWC) went up from a few pence to 600p, just on the basis of buying BTC by raising heaps of equity. I would never say a company is overvalued, unless it was really obvious. This is partly because the market is the boss in these matters, and party because there are enough people throwing stones at stocks, shorting and generally making life a misery for those in the space.
Indeed, the only reason I wrote about EEE in the aftermath of the peak of the shares was because I received an email pointing out that the company could (I repeat, could) in valuation terms be at the end of stage one of the Lassonde Curve, the discovery stage. Subsequent to that shares of EEE fell from 83p to a low of 30p, a significant ouch moment. So much of an ouch that a fan of the stock has criticized the coupling of the Lassonde mention with the fall in the stock which they blamed on a “seller”.
Well, this must have been one hell of a seller, someone that was unlikely to have been susceptible to comments here, Lassonde’s Curve, or anyone else’s. Fortunately, shares of EEE, which have been championed and interviewed here when they were just a few pence, have bounced well from 30p this week and are presumably perfectly capable of getting back to their highs as “commercial reality” approaches. But what is interesting, and is something that can happen with small companies, is that management is keen to get the coverage and the share price targets from commentators such as myself when they are trying to get off the ground. But once they have hit the big time they are way off in the distance. “Don’t forget me when you are famous” is a meaningful line.
Stocks Rising On News
As I have just mentioned, EEE did rebound after the seller was out / Lassonde Curve rug pull. Indeed, this is the second big rug pull situation in the recent past after Mast Energy (MAST), something which is perfectly normal in a bull market, but something many of us have not been familiar with for some years. EEE said “the resource exploration and development company, would like to respond to recent sharp decline in the Company’s share price and would like to clarify that there has been no material change to the Company’s operational or financial position to account for this movement.” The shares recovered to 55p by the end of last week.
A happier and more straightforward situation came in the form of Renalytix (RENX). The company’s kidneyintelX.dkd, the only FDA-approved and Medicare reimbursed prognostic test to support early-stage risk assessment in chronic kidney disease, was announced part of a collaboration agreement with Tempus AI, Inc. (NASDAQ: TEM). This obviously means that RENX has hit the big time in the USA, and while the shares were up 83% on the week, arguably, they should have been up much more.
It has been noticeable over the past few months that biotech stocks have gone through the roof, with notable beneficiaries being Hemogenyx (HEMO) and Fusion Antibodies (FAB) also having been called up here from the lows on a technical basis, obviously with no acknowledgement at all. The next biotech which could be ready to pop and already has so far this week to the tune of 52%, is Genflow (GENF). Here the longevity play announced that it has filed a formal request for the examination of its patent application entitled SIRT6 Variants for NASH in China. The application covers proprietary variants of the SIRT6 gene designed to address Non-Alcoholic Steatohepatitis (NASH), a severe progressive liver disease with limited treatment options.
I have said on many occasions here that I do not believe in speeding ticket RNS’s and think they should be discontinued, knowing full well that the more I say this the less likely it is to happen. The latest example has been Genincode (GENI), with the shares up 148% on the week. The predictive genetics company focused on the prevention of cardiovascular disease and ovarian cancer, said “it noted the movement in the share price and knows no reason for this sudden movement, albeit the board believes the shares remain undervalued.” Undervalued indeed.
One of the ideal scenarios as far as small cap companies are concerned is that management and shareholders are aligned. In the case of United Oil & Gas (UOG) most of the alignment to date has been on the downside, rather than the upside. But at least this week the company announced performance related share options pursuant to the amended scheme. UOG said these options will not be able to be exercised unless the Company’s share price reaches at least £0.0054 per share, representing a 300% premium to both the July 2025 placing price and the proposed exercise price. Good luck all.
Stake building to the tune of a new 5% entrant meant that Nativo Resources (NTVO), the gold-focused mining company with interests in Peru saw its shares rise 61% on the week.
Soaring profits and an excellent Zakstraderscafe.com interview (below) left shares of Kromek (KMK), a leading developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments up 26% on the week.
Quadrise (QED) was up 34% as the technology company focused on the decarbonisation of shipping and heavy industry announced the successful completion of proof-of-concept and emissions testing programmes for its MSAR® and bioMSAR™ fuels at the Sparkle Power SA plant in El Giral, Panama.
A new 3% shareholder was able to boost the ongoing mega-rally in the aforementioned Hemogenyx (HEMO), with the shares up 46%. Mast Energy Developments (MAST) recovered another 37% on the week to 135p as it said it was encouraged by the recent wave of international investment into UK AI infrastructure – including Google’s £5 billion commitment. It would appear that the shares are preparing to return back to the 200p plus zone they were trading at prior to their big rug pull earlier this month.
Panthera Resources (PAT) provided an arbitration update on its Indian claim and appeared happy with the latest arbitral panel order concerning its $1.5bn claim, on the basis that it is likely to speed up the process to a successful conclusion. Shares of PAT were up 16% on the week.
Stocks Rising On No New News
After delivering shareholders a journey to success of epic proportions, we have seen an ongoing squeeze higher at Kefi Gold (KEFI). Here the last major news was of an update at the Tulu Kapi Gold Project in terms of preparations for full Project development. Highlights here included US$340 million Project capital budget updated from 2023, being certified, an US$240 million expanded debt facility now formally offered by both co-lenders, and an US$100 million equity-risk capital assembled at subsidiary level for finalisation. No wonder the stock finished up another 13% this week at 0.93p, two year highs. The charts point to 1.1p as soon as the end of next month while we are on the right side of 0.85p.
There was also no new news at Pyx Resources (PYX) to explain the 58% share price rise this week. But it would appear that the market has started to take the typical third world jurisdiction goal post moving in its stride, after a multiple RNS’s highlighting regulatory challenges. To be fair, this country and the North Sea is probably even worse, and we are supposed to be first world.
There has been no substantive news from payments solutions group RC365 Holding (RCGH) to explain its 55% share price rise this week. That said, last month the company did state that it “notes recent investor commentary and bulletin board speculation regarding the Company’s asset-backed card offering, in particular references to the use of stablecoins.” Perhaps some in the market are salivating over the thought of stablecoins entering the fray sooner rather than later.
In a similar vein Anemoi (AMOI) shares were up by a third this week. Last time we heard from the company it was boasting a 15% gain on a crypto disposal. Perhaps it has something similar lurking up its sleeve.
September to date has been one of the best months for Cadence Minerals (KDNC), which has rather done a Kefi in terms of finally getting itself over the line. On September 10 the company revealed the release of an interview with its CEO, Kiran Morzaria. In the interview, Kiran discusses the staged development strategy underway at the Company’s flagship Amapá Iron Ore Project, including the recommissioning of the Azteca Plant. The shares were up 36% this week.
Company Interviews: Capital Metals (CMET) and GenIP (GNIP)
Most of the interviews that are conducted here on Zakstraderscafe.com are via Teams or Zoom. Just now and again, one is there with one’s recorder in a face to face interview. This week’s live session was with Greg Martyr, Executive Chairman, Capital Metals. The mineral sands company is approaching Final Investment Decision (“FID”) by the end of the year, which requires all studies to be complete and Project approvals and funding in place in order to commence construction at the high-grade Taprobane Minerals Project in Sri Lanka. There is also the sizzle of two key pending approvals to expand the initial mining area. Shares of CMET are already up over 100% year to date, and seem well poised to squeeze higher in the run up to FID.
Another Interview which stood out for me this week was with Michael Rosen, Senior Advisor at GenIP. It is appropriate that someone with 40 years of experience at blue chip US companies such as Pfizer, and someone who worked with the likes of MIT, should be an evangelist for a game changing company in the area of AI boosted research and recruitment. Listening to the interview underlines how Rosen is the bridge between showing industry and academic the how GNIP can maximise efficiency and decision-making, as well as being someone who investors wanting to invest in real world applications of AI, something which GNIP is set to be a leader in.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
