Small Cap Feast

Small Cap Feast – 16 December 2019

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SulNOx Group – The Group has developed a methodology and process capable of emulsifying hydrocarbon fuels such as diesel and heavy fuel oil . By January 2014, following preliminary laboratory testing, SulNOx was in a position to suggest that its products resulted in up to a 50% reduction of Nitrogen Oxide (NOx) and a 90% reduction in particulate matter Due 17 Dec, mkt cap £42.3m.

Breakfast Buffet

Sunrise Resources (SRES.L) 0.13p £4.05m

The Company focusing on the development of its CS Pozzolan-Perlite Project in Nevada, USA is pleased to advise that it has signed an agreement with Liberty Moly LLC (“Liberty Moly”) providing the Company with a lease of water rights to be used in the development of its CS Pozzolan-Perlite Project (“the Project”).
The lease covers an initial 5-year period renewable for a further five one-year periods and covers enough water for the Project’s annual projected requirements at full production rates.
The leased water rights are currently attached to the past-producing Liberty molybdenum mine some 18 miles west of, and in the same water basin as, the Project. Liberty Moly is a subsidiary of General Moly, Inc. The Company, with assistance from Liberty Moly, will now apply to the Nevada Division of Water Resources for permits to enable extraction of water at the Company’s designated well-site which is included in existing Right of Way applications made by the Company and which are being determined by the Bureau of Land Management alongside the Company’s mine permit application.

K3 Capital (K3c.L) 187p £79m

HY Nov 19 trading update from the business and company sales specialist in the UK. The Group has achieved a ‘double digit’ increase in revenue and an increase in EBITDA when compared with the first half of the prior financial year with a strong EBITDA margin maintained at in excess of 40%. During the Period, the Group has seen a record number of completed transactions (up 30% from the comparative period last financial year) with the growth primarily driven from its volume brands, Knightsbridge and KBS Corporate.
In a similar vein to previous years, the Group enters its second half of the financial year with the momentum of a record number of opportunities within its WIP pipeline (agreed and in legal exclusivity) which carry strong transaction fee values.
The Board welcomes the political stability that last week’s election result brings and whilst the outlook for the UK still sees some economic uncertainty, not least surrounding Brexit, the Company is pleased with the growth that has been achieved during H1 and can confirm that it remains confident in achieving market expectations.

Sensyne (SENS.L) 73p £92m

“The British clinical AI technology company, provides an update following the UK General Election which took place on 12 December 2019.
The outcome of the UK General Election, returning a Conservative government with a significantly increased majority, has now removed a degree of uncertainty from the operating environment for the Company.
Over the past year, the UK government has been moving towards a strategy for the commercial use of anonymised patient data based upon the creation of a sovereign capability at a national level. As announced by the Company on 5 December 2018, Sensyne Health has welcomed this and has formed a portfolio of collaborations with major strategic partners over the past year to enable it to respond positively to these developments.
The new government has signalled that NHS investment and reform will be its top priority and it will now be able to progress with the creation of a national patient data capability.
The Company and its partners are strategically well positioned, with Sensyne’s unique NHS partnership model providing a shared financial return back into the NHS.”

Microsaic Systems (MSYS.L) 1.1p £5m

“The developer of point-of-need mass spectrometry (“MS”) instruments, is pleased to announce that has partnered with the Centre for Process Innovation (“CPI”), utilising the CPI’s UK biotherapeutics facility, to demonstrate the potential use of Microsaic’s MS instruments in bioprocessing. Starting in January 2020, the project will take approximately 12 months and will deliver an on-line, and real-time method for bioreactor chemical analysis and control. Directly interfaced with the bioreactor, Microsaic’s point-of-need MS detector will be integrated with “closed-loop” software which will control the overall system, and will provide continuous, real-time control of the biomanufacturing process, including the provision of additional data analytics for quality monitoring and assurance.
The CPI connects academia, businesses and funders to bring bright ideas and research into the marketplace. It offers facilities across a network of sites which provide equipment and technical expertise that help companies to develop next-generation products and processes.

Petro Tal (PTAL.L) 26p £175m

Update on its operations and production at the Bretaña oil field in Block 95 in Peru (100%).
· Initial three day production rate at the BN 95-5H horizontal well (“5H”) is 8,250 barrels of oil per day (“BOPD”), exceeding management’s expectations.
· 5H well completed on time and came in approximately 20% ($3.0 million) less than the original $14.5 million budget.
· Completed the 5H well using new technology to maximize oil production.
· The Bretaña oil field reached new record production of over 9,000 BOPD, currently with just two (the 5H and the 1XD) of the six wells online.
· Close to completion of the central production facilities (“CPF-1”), which will increase overall production capacity to 15,000 BOPD.
· Fourth quarter average production of at least 7,500 BOPD and 2019 exit rate between 11,000 BOPD to 13,000 BOPD reconfirmed.

Richland Resources (RLD.L) 0.36p £3.1m

Further Extension to Amended Option Agreement’s Longstop Date to sell the Capricorn Sapphire Project and amendment to form of Consideration.
Composition of the purchase price be amended such that the Consideration Shares (as defined in the Option Agreement prior to the Sixth Addendum) shall no longer be payable and, instead, the Cash Consideration shall be increased to US$1,250,000.
The Longstop Date be extended to 20 December 2019

Trans Siberian Gold (TSG.L) 64p £55.8m

Agreement with Russia’s Far East Development Corporation officially confirming the Company’s residency in the Kamchatka Advanced Special Economic Zone (“ASEZ”).
The ASEZ programme aims to encourage new investments in the Far East of Russia and aiding economic growth by providing preferential business terms to organisations in the region. TSG will benefit significantly from reduced income taxes, metals royalties, property taxes and land taxes. The Company estimates that the potential benefits of inclusion within the Special Economic Zone may contribute to approximately $6m in cost savings over the next 7 years. TSG will implement a number of new capital investment projects including the development and construction of an extension to the Asacha Gold Mine, known as Vein 25. The Company expects to invest up to $21.2m until 2024 . Further details about the ore-body at Vein 25 will be included within the updated Mineral Resource Estimate for the Asacha Gold Mine which is expected to be released shortly.

The Fulham Shore (FUL.L) 11.25p £64.5m

HY Sep 19 results. 69 restaurants in the UK, comprising 51 Franco Manca and 18 The Real Greek.
Revenues increased 9.3% to £36.0m (2018: £33.0m)
Headline EBITDA of £8.4m after adoption of IFRS 16 and £5.0m before adoption of IFRS 16 (2018: £4.6m)
Operating profit of £2.1m after adoption of IFRS 16 and £1.5m before adoption of IFRS 16 (2018: £1.6m)
Profit after tax of £0.4m after adoption of IFRS 16 and £1.0m before adoption of IFRS 16 (2018: £0.9m)
Operating cash inflow of £9.4m after adoption of IFRS 16 and £5.6m before adoption of IFRS 16 (2018: £4.9m)
Net debt (excluding lease liabilities) of £8.8m (2018: £8.9m); down from £9.4m at 31 March 2019
Current trading remains satisfactory but the sector’s outlook is not helped by poor consumer confidence. Opening plan contemplates growing the UK business by 8 to 10 new restaurants in the next financial year.

Be Heard (BHRD.L) 0.365p £4.55m

FYDec19 update from the digital marketing services group, FY outlook for the Group remains unchanged, with reported EBITDA (post IFRS 16) expected to be in line with market expectations. The Group’s digital and insight businesses continue to perform well, offsetting the disappointing decline that the Group has experienced in its more traditional and creative businesses, which is in line with recent announcements from several of the Group’s competitors.

Autins (AUTG.L) 20.5p £8.1m

The designer, manufacturer and supplier of acoustic and thermal insulation solutions for the automotive sector announces that Kamran Munir will join the Board of the Company as Chief Financial Officer (“CFO”) with effect from 1st January 2020.
Kamran is a highly experienced strategic and operational CFO, with a background of large corporate and VC roles. Kamran joins Autins from Precision Castparts Corp. (“PCC”), a NYSE-listed manufacturer of complex metal components and products.

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