Small Cap Feast
Small Cap Feast – 17 June 2019
Set Menu AIM:
Total number of AIM Companies (Incl Susp): 893
Total number of AIM Companies trading: 818*
* As at 17 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 17 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 17 June 2019
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No Leavers Today
No Leavers Today
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No leavers Today
No leavers Today
What’s Cooking in the IPO Kitchen?
Main Market (Premium)
Trainline—Seeking £75m raise. Proceeds to target a net debt at IPO of c.2x LTM Adjusted EBITDA). In FY 2019, Trainline achieved net ticket sales of £3.2bn, and revenue of £210m. Due June
Airtel Africa Limited — provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa, looking to join the premium segment of the main market. Offer TBC, expected TBC
ReAssure Group plc – The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market.
Main Market (Standard)
IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC
Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019
Argentex a UK-based forex service provider founded in 2011 by its current management team which operates as a Riskless Principal for non-speculative and forward foreign exchange as structured financial derivatives is looking to join AIM. Offer TBC, expected 25 June
Rumours & Speculation
Neptune Surf Technology plc*, a vertically integrated lifestyle accessory group focused on the surf market, designing its own high-performance wetsuits and surfing hardware and distributing these together with third party brands globally with key markets being Europe, Australia and USA and Brazil, is looking to join AIM and ‘is planning an £11m float’ according to The Sunday Telegraph.
FairFX (FFX.L) 111p £182.5m
FairFX, the e-banking and payments group, announced that at its AGM, John Pearson, Chairman, will make the following statement:
“2018 was another year of significant growth for FairFX with further progress made towards our strategic goals. Turnover and revenue growth continued to be strong, both organically and via acquisition, whilst we also made further investment in our technology to increase the functionality and capacity in our platform for continued expansion.
“The Group has enjoyed a strong year to date in 2019, both in terms of turnover and improved margins, which is a consequence of further rationalisation of the supply chain. In addition, the investments we made in 2018 are now flowing through in terms of new products being released in 2019; with one such example being the granting of the Bank of England settlement accounts and direct access to the Faster Payments scheme.
“The Board expects the Group’s trading performance for the full year to be in line with market expectations.”
Fox Marble (FOX.L) 7.6p £17.6m
Fox Marble, the company focused on marble quarrying and finishing in Kosovo and the Balkans region announced the largest single order of its highly prized Illirico Selene marble from the Maleshevë quarry in Kosovo.
Fox Marble has received an order for 1,850 tons of Illirico Selene from an existing customer. Loading of the material has begun, and the order will only be recognised as revenue as the material is despatched from the quarry over the next few weeks.
The order is notable because it consists not only of the higher quality large blocks of stone but also large quantities of small and semi blocks which constitute a lesser grade of block. This has the additional effect of clearing out old stock extracted some years ago and freeing up space in the quarry to further extend the quarrying area and reach additional resources of good quality stone.
This has taken place in part because the demand for this material is expanding with the increased penetration in various markets and the competition for this material from our quarry is growing.
Reabold Resources (RBD.L) 1p £38.2m
Reabold Resources an investing company investing in the exploration and production sector, announced a discovery at West Newton.
Successful appraisal of onshore UK discovery, with both gas and liquid hydrocarbon volumes encountered
Preliminary data suggests West Newton 2C Contingent Resources* is at least the pre-drill estimate of 189 Bcf (Billion Cubic Feet of Gas), the equivalent of 31.3mmbo (million barrels of oil)
West Newton is potentially the largest UK onshore gas field and potentially the largest hydrocarbon discovery onshore UK since 1973, subject to further testing
West Newton is near Hull where there is an abundance of production infrastructure
Permitting in place for Extended Well Test planned for Q3 2019
Existing pre-Drill NPV for West Newton of $247m
Deeper exploration target in the Cade by formation encountered hydrocarbon shows with an oil saturated core
Union Jack Oil (UJO.L) 0.2p £22.27m
Union Jack Oil, a UK focused on-shore hydrocarbon production, development and exploration company announced positive preliminary results in respect of the recently drilled West Newton A-2 conventional appraisal well, located within PEDL 183 and operated by Rathlin Energy (UK) Limited. Union Jack holds a 16.665% interest in this licence containing the West Newton A-1 discovery well and West Newton A-2 appraisal well.
Substantial hydrocarbon accumulation within a net 65 metre interval encountered in the primary target, the Kirkham Abbey formation
Significant liquids component identified from core and logging data
Extended well test planned for Q3 2019
Planning permission in place for an extended well test
Potentially transformational well result for Union Jack
Trans-Siberian Gold (TSG.L) 64.9p £71.4m
Trans-Siberian Gold, a low cost, high grade gold producer in Russia, announced the appointment of Evgeny Volkov as Mine Manager of the Asacha mine in South Kamchatka, with immediate effect.
Mr Volkov has over 20 years of experience working in the mining industry, most recently as Mine Director at Nordgold’s Zun-Khloba mine in Republic of Buryatiya, where Evgeny was responsible for developing and implementing the underground mining strategy, geotechnical control and mine production, people management and budget planning, amongst others. Prior to that, Mr Volkov spent eighteen years working at the iron ore subsidiary of Evraz, lately as Chief Engineer and Technical Director.
Mr Volkov, aged 42, holds a degree in Mining Engineering (Underground) and a degree in Mineral Processing Technology Engineering from the Siberian State Industrial University.
Intercede (IGP.L) 39p £19.68m
Intercede, the leading specialist in digital identity, credential management and secure mobility, announced that Rob Chandhok has joined the Board of Intercede as an independent NED.
Rob has more than 20 years’ experience in senior commercial technology and internet services roles. He is currently Group CTO at the Daily Mail and General Trust plc, responsible for shaping the Group’s technology strategy.
He has served in senior leadership roles in consumer electronics companies and in start-ups related to the internet of things. Prior to this, Rob performed a series of senior leadership roles at Qualcomm where he led new technology initiatives and managed relationships with the world’s largest software companies.
Avesoro Resources (ASO.L) 51.15p £38.03m
Avesoro Resources, the West African gold producer announced that, subsequent to its announcement of June 12, 2019, negotiations have now successfully concluded between the Company’s proposed open pit mining contractor, Orkun Group Sarl and former employees of the Company’s open pit mining department. Both the open pit mining and gold processing plant operations have now restarted at the Youga Gold Mine in Burkina Faso.
Mining operations recommenced at Youga on June 15, with processing operations recommencing on June 16, following a period of building stockpiles. During the time that processing operations were suspended at Youga, the Company’s engineering team took the opportunity to bring forward and complete various scheduled electrical and mechanical maintenance tasks in and around the process plant.
Angling Direct (ANG.L) 72p £46.5m
Angling Direct, the largest specialist fishing tackle and equipment retailer in the UK, announced that it has opened its 28th store in the UK. The new store, located in Sutton in Ashfield, Nottinghamshire, opened on Sat 15 June.
The new store, which was previously occupied by Brantano, has a 4,500 sq ft. display area and is located just outside the main town, with easy access via the A38 and other arterial roads.
Located in a popular fishing area, with a strong angling community and a series of lake and river venues, the store is the first fishing tackle “destination store” of its kind in Sutton in Ashfield. As with all Angling Direct stores, it caters for a wide range of angling disciplines, whilst also providing excellent service from local and knowledgeable employees. The new store is creating five full and three part-time positions.
European Metals Holdings (EMH.L) 22.5p £31.8m
European Metals Holdings announced the results from the successful update of the process flowsheet previously developed to enable the production of lithium hydroxide (LiOH.H2O). This work has been completed in conjunction with test-work confirming the production of battery grade lithium hydroxide from Cinovec ore.
These results significantly enhance the forecast economics of the Cinovec Project.
HIGHLIGHTS (all $ figures in this release are US Dollars and increases refer to the 2017 PFS Lithium Carbonate study):
Net estimated overall cost of production post credits: $3,435 / tonne LiOH.H2O
Project Net Present Value increases 105% to: $1.108B (post tax, 8%)
Internal Rate of Return (“IRR”) increased 37% to 28.8% (post tax)
Total Capital Cost: $482.6M
Annual production of Battery Grade Lithium Hydroxide: 25,267 tonnes
Studies are based on only 9.3% of reported Indicated Mineral Resource and a mine life of 21 years processing an average of 1.68 Mtpa ore
The process used to produce lithium hydroxide allows for the staging of lithium carbonate and then lithium hydroxide production to minimize capital and startup risk and enables the production of either battery grade lithium hydroxide or carbonate as markets demand
Amerisur Resources (AMER.L) 12.08p £146m
Amerisur Resources, the oil and gas producer and explorer focused on South America, announced that it has entered into a conditional agreement with Occidental Andina LLC to dispose of a 50% interest in the Put-8 exploration licence in the Putumayo region of Colombia, for a cash consideration of $19.1m.
On 20 March 2019, Amerisur announced that it had exercised a right of first refusal (the “ROFR”) to acquire the 50% of Put-8 that it is not already interested in, and the operatorship of Put-8, from Vetra Exploración y Producción Colombia SAS. On 18 March 2019, Amerisur entered into the Agreement with Occidental which is conditional, inter alia, on the approval by the Colombian National Hydrocarbons Agency (the “ANH”) of the transfer of a 50% interest from Vetra to Amerisur, pursuant to the ROFR and the subsequent application for and approval of the transfer of a 50% interest in Put-8 from Amerisur to Occidental by the ANH. The consideration for the Disposal is US$19.1 million in cash, including local taxes, which has been pre-paid by Occidental on the basis that it is refundable if the Disposal does not complete. On completion of the Disposal, taking into account the pre-payment by Occidental and the recovery of local taxes, the net effect of the completion of the ROFR and the Agreement is expected to be broadly neutral to the Company’s unrestricted cash position. Amerisur will retain the operatorship of Put-8 following completion of the Disposal.
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