Small Cap Feast

Small Cap Feast – 06 June 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 895

Total number of AIM Companies trading: 820*
* As at 04 June 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 89*

Total number of NEX Growth Market Companies trading: 87*
* As at 04 June 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 163*

Total number of Standard List Companies trading: 141*
* As at 04 June 2019

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What’s Cooking in the IPO Kitchen?

Breakfast Buffet

Altona Energy (NEX:ANR) 17p £0.3m

Altons has entered into a MoU with Shaanxi Qianyan Vanadium and Magnesium Mining Industry Ltd Company (“Shaanxi Mining”), the owner of an operational vanadium mine in China, with the aim of forming a Joint Venture Company in which it is expected that Altona will eventually become the controlling shareholder.  The due diligence process is expected to take up to six months to complete and is dependent upon a number of factors, including Shaanxi Mining being granted a provincial government permit which will allow it to enter into an international joint venture agreement with Altona.  The Board has been informed that in 2018 Shaanxi Vanadium reported revenues of approx. RMB35,000,000 (£3.9m) and a net profit of approx. RMB20,000,000 (£2.3m). The mine was at full production for approximately half of the year, due to the installation of new equipment and processing techniques, in order to increase productivity, as mentioned above.

The company sells the vanadium pentoxide via China FerroAlloy Online (www.cnfeol.com), a recognised Chinese commodity market.

Amino Technologies (AMO.L) 102p £67.37m

HYMay19 update from the  global provider of media and entertainment technology solutions to network operators.

“We have made good progress with the transformation programme announced in February 2019, which will support an acceleration of our focus on value-added software, services and hardware.  The programme was completed on schedule in April 2019 and is expected to deliver annualised cost savings of $5m as planned. The Board’s expectations for the full year therefore remain unchanged. H1 2019 revenues are expected to be approximately $35m (H1 2018: $41.2m).  Net cash at 31 May 2019 was $19.3m (31 May 2018: $15.0m), reflecting continued strong margins and cash conversion. 

Consistent with our strategy of delivering value-added software, services and hardware in the period we have: –Delivered our first major sale of AminoOS through Amino’s new Original Design Manufacturer partnership channel (for a top-tier pay TV operator in the APAC region); and –  Deployed our AminoTV solution on a multi tenanted platform to deliver modern TV experiences in the Netherlands (for Dutch cable and internet service providers Delta and Caiway).”

TP Group (TPG.L) 7.10p £55.32m

AGM statement form the specialist services and engineering group.

“I am pleased to report that TP Group is continuing to build upon the excellent progress achieved in 2018.

So far this year, as previously announced, we have signed a number of major new contract wins, alongside the acquisition of Sapienza Consulting, which forms part of our plan to become a global high-technology business which delivers value to all our stakeholders.”

“We have been actively exploring selected acquisitions and partnerships, to complement our organic growth.  Last month we were pleased to announce the acquisition of Sapienza Consulting which improves the Group’s access to European markets, the space industry, significant new customers and a range of additional and highly complementary technologies. We have also been building relationships in the United States with leading technology providers and recently announced a licensing agreement with Battelle Inc. of Columbus, Ohio.”

Xpediator (XPD.L) 45p £61.20m

Board changes in AGM Statement from the provider of freight management services across the UK and Europe include:

Stephen Blyth, currently chief executive officer, will become executive chairman;

Stuart Howard, currently chief financial officer, will become chief executive officer; and

Alex Borrelli, currently non-executive chairman, will become senior independent non-executive director.

The Board is also pleased to confirm the Company is trading in line with market expectations. Demand for freight management services remains strong across all three divisions and the Group is benefiting from increased activity. There continues to be a good pipeline of M&A prospects made up of a range of bolt-on opportunities each of which would add significant value to the Group.”

SCISYS (SSY.L) 187p £57.44m

AGM Statement from the “supplier of bespoke software systems, IT-based solutions and support services to the space, media & broadcast, government, defence and commerce sectors,”

SCISYS can report that it has made a positive start to 2019, delivering on contracts that formed part of its record opening order book, winning notable new contracts and generating strong cash flow in line with Board expectations. All divisions continue to expand their teams on the strength of their pipelines of prospective business opportunities.

The Directors expect that the Group’s earnings in 2019 will follow the more familiar pattern of being heavily weighted towards the second half of the year; the more balanced profile of business seen in 2018 proved to be a temporary phenomenon.

Ariana Resources (AAU.L) 2.12p £21.72m

The “the exploration and development company with gold mining operations in Turkey, is pleased to announce its drilling results for the Kizilcukur Project “.

    Near surface in-fill resource drilling results from the Zeki vein at Kizilcukur include: 6.0m @ 4.21 g/t Au + 205.9 g/t Ag, 5.3m @ 4.04 g/t Au + 171.9 g/t Ag and 6.4m @ 3.44 g/t Au + 89.3 g/t Ag.    Bonanza grade mineralisation was encountered in one hole, yielding 0.9m @ 30.27 g/t Au + 184.0 g/t Ag (32.9 g/t Au equivalent) in a footwall vein not previously drill-tested. 

Majority of the high-grade results occur over c. 130m of strike to a depth of at least 40m; true widths of veins are c. 3-4m.

Coarse-screening of samples confirms the presence of a coarse gold fraction (>75 microns) at Kizilcukur.

New access road has been constructed to the trial mining area, which will be suitable for potential future haulage to the Kiziltepe processing plant. The mineralisation encountered within the top 40m of the Zeki vein system shows sufficiently high grades and widths to support an open pit operation.

Cluff Natural resources (CLNR.L) 1.85p £11.53m

The  natural resources investing company with a high impact exploration and appraisal portfolio focused on the Southern and Central North Sea, is pleased to announce the successful completion of the Fundraising announced on 5 June 2019.

£15m at 1.75p,  a 16.67 per cent. discount to the mid-market closing price on the 5 June  .

“We are delighted to announce this transformational fundraising which will fully fund the Company to drill its two high-impact wells with Shell at Selene and Pensacola while also allowing us to continue to further expand and de-risk the rest of our portfolio. This fundraising allows us to build on the recent success achieved with the substantial expansion of our portfolio of licences in the last UK licensing round as well as the introduction of Shell as a partner on two of our licences.”

Pantheon Resources (PANR.L) 24.10p £105.45m

Update in relation to the testing of the Alkaid well located on the Alaska North Slope.

Oil in place – the Alkaid and Phecda combined OIP has been upgraded by the Company by approximately 50%, increasing from 595 million barrels of oil (“mmbo”) to 900 mmbo.

Recovery factor (“RF”) – the RF for Alkaid and Phecda has increased from 10% pre-drill to a range of 10-15%. It is noted that secondary recovery techniques such as water flooding have been successfully applied to other Brookian accumulations in Alaska bringing recovery factors as high as 40%.

Future development wells will be drilled horizontally and fracked. The Board believe that, in a success case, a modelled P50 well is estimated to have an EUR (Estimated Ultimate Recovery) in the range of 1.5 – 2.5mmbo and an estimated potential maximum flow rate per well exceeding 1,500 barrels of oil per day.

Thor Mining (THR.L) 0.78p £6.33m

Positive assay results from metallurgical bulk sample drilling at the company’s wholly owned Molyhil tungsten molybdenum deposit, in the Northern Territory of Australia.

Two PQ (85mm) diamond drill holes were drilled down plunge of the Yacht Club lode to obtain material for production of tungsten and molybdenum concentrate samples for prospective project offtake partners.

 Highlight

92.6 metres @ 1.0% WO₃ (tungsten trioxide), 0.16% Mo (molybdenum) and 0.13% Cu (copper) from surface, including 2.2 metres of unmineralised granite from 11.5m;

“While the hole design was for the purpose of collecting material most likely to produce sufficient concentrate, rather than for resource purposes, the high-grade nature of the scheelite mineralisation provides further substantial confidence in the Molyhil deposit”

Autins Group (AUTG.L) 27p £8.07m

HYMar19 update form the designer, manufacturer and supplier of acoustic and thermal insulation solutions for the automotive sector.

The Group, and the automotive industry generally, is continuing to experience challenging trading conditions from a combination of factors, including OEM factory shutdowns due to Brexit, uncertainty over the future of diesel engine vehicles and a sharp decline in global demand, especially in China. Despite this market backdrop, the Group has continued to see positive momentum in its business and while further recovery is required to return to H1 18 levels, H1 19 has seen an improvement on H2 18.

Although full-year revenues are expected to be broadly in line with market expectations, the Board anticipates that the Group’s EBITDA, as a result of the delay in margin recovery, will be close to break-even for the full year.

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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