18th June 2013
This week: Acta Cleans up, Ingenious cashes up and One Media Revenues Up
The major indices continued to be under pressure last week, with the FTSE 100 losing another 106 points to 6,305 and the AIM All share falling another 6 points to 713. Concerns over monetary policies or their effectiveness, and subdued growth in China remain the key obsessions. The mining sector continues to bear the brunt as more and more institutional investors appear to be abandoning this space. However, markets have kicked off this week on a more positive note with defensive sectors such as household goods outperforming. The main macro event this week is likely to be comments from the Federal Reserve after the FOMC rate decision on Wednesday. On Thursday, sentiment may be driven by Initial Jobless Claims in the US and UK Retail sales.
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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.
AAU £1.25million Subscription and Equity Swap, ACTA EU grant funding, COMS Three acquisitions, ECR Placing to Raise ££450,000, EGX Change of name and supply contracts, FBT FORscene used on The Voice, GAL Resource Estimate Update, HDD Interim Results, IFM placing and trading update, IMAC Sale of Digital Rights Group, KEFI Exploration Update, KYS Independent Technical Report, LID Trading update, LRL Operational update, MTL Issue of Equity, NEW Extension in Denmark, OMIP half yearly report and acquisition, PGL Operational Update, POLY Listing on Moscow Exchange, PRM Major technology contract, RGO Placing and new management, SGO Issue of Equity, SOLG Exploration Update, SORB Interim Results, SPRP Tender Update, SUMM milestone from Wellcome Trust & CMO appointed, TEG new contract, TRCS Trading Update, VAL 201 Update, VRS first day of dealings on AIM
2ergo Group (LON:RGO 3.38p/£2.18m)
2ergo Group, the mobile solutions company, has conditionally raised £3.1m (before expenses) through a placing at a price of 1p, and the subscription by certain directors for a total of 54m new shares also at a price of 1p. MXC Capital is a cornerstone investor in the placing. MXC Capital is a specialist investment and advisory group with proven expertise in investment, strategy and funding, focused particularly on the technology sector. The new shares represent, in aggregate, approximately 80 per cent of the Company’s enlarged share capital. The proposed New Board will devise a focused strategy for podifi to more effectively penetrate the rapidly growing, evolving and converging space of mobile couponing and loyalty. Ian Smith, the proposed Executive Chairman of the Company, is a founding partner and shareholder of MXC Capital and will exploit his experience and contacts across the industry to develop larger enterprise opportunities and explore other applications of the Company’s patented technology. The new Board will also include Neale Graham, the current CEO, as an executive director and Simon Duckworth as an independent non-executive Director. Subject to the placing becoming unconditional in all respects, Barry Sharples, Keith Seeley and Peter Kenyon will resign as directors.
Acta (LON:ACTA 7.88p/£11.06m)
Acta S.p.A, the clean energy products company, has received a first stage payment, amounting to €182,000, in relation to the EU-funded Alkammonia grant project, the conditional approval of which was previously announced on 18 December 2012. The €1.96m Alkammonia grant project has been funded by the EU Fuel Cells and Hydrogen Joint Undertaking to develop ammonia-fed alkaline fuel cells, and is led by project leader AFC Energy Plc (LON:AFC). The Company is due to receive up to €395,000 in total for its participation as partner over the three-year life of the project. Acta will be providing an ammonia cracking reactor and catalysts to the project. Ammonia has high hydrogen content and can be easily converted to hydrogen by processing (cracking) it through a catalyst. Acta’s ammonia catalyst contains no precious metals and performs better than commercial platinum group metals catalysts in converting the ammonia to hydrogen, which, in turn, powers the fuel cell.
Ariana Resources (LON:AAU 1.1p/£4.59m)
Ariana Resources, a Turkey-focused gold miner, signed an equity swap agreement and also conditionally raised £1.25 m, before expenses, to help develop the Company’s Red Rabbit Project in western Turkey. The investment provides Ariana Resources with sufficient capital to proceed to the construction phase of the Kiziltepe mine as the Company progresses its near term intention to become a producer. The funds will also be used to continue exploration in the wider Red Rabbit Project Area and for general working capital. The Company is expecting to finalise environmental and various construction permitting matters during the third or fourth quarter of 2013 in order to enter the construction phase by year-end, once mine finance is secured at the Joint Venture company level.
Coms (LON:COMS 2.65p/£12.35m)
Coms announced it has acquired two sets of telecoms and IT hardware used in providing data networks. The Company has acquired one of these from the Company’s CEO, Dave Breith for a price of £200,000. In addition it has acquired another set of assets from TFM Networks Limited for a consideration of £480,000. Both acquisitions are payable in Coms ordinary shares at a price of 2.7 pence per share for the TFM assets and 3 pence for the Dave Breith assets. For a period of three months, all parties have agreed not to sell any shares without the permission of the Coms plc board. Coms has also acquired the entire issued share capital of Premium O Limited for a consideration of £1.8m payable entirely in Coms ordinary shares at a price of 3 pence per share. The consideration will comprise an initial consideration of 80 per cent, with 20 per cent deferred until Premium O has generated for Coms an additional gross margin of a least £55,000 per month for at least three months. Once this condition has been satisfied, the issue of the shares is at the option of the individual Premium O shareholders. David Breith has a 59.5 per cent interest in Premium O. Following the issue of the initial shares, David Breith will hold 136,186,455 ordinary shares representing 25.28 per cent of the Company.
ECR Minerals (LON:ECR 0.11p/£1.83m)
ECR Minerals, a mining company active in Asia and South America, announced the placing of 450 m new shares at a placing price of 0.1 pence each, to raise £450,000 before expenses. The proceeds will be used to: Complete due diligence on the Itogon gold-silver project in the Philippines and continue to liaise with the authorities there with regard to renewal of the exploration permit pertaining to the project for a second 2 year term: Procure a buyer or joint venture partner for its owned Sierra de las Minas gold project in Argentina: And liaise with the administrators of its Australian subsidiary, Mercator Gold Australia Pty Ltd, with a view to seeing the administration process concluded, thus paving the way for a transaction to take advantage of subsidiary’s tax losses.
Energetix Group (LON:EGX 14.25p/£18.88m)
Energetix Group, which develops and commercialises alternative and efficient energy products, will change its name to Flowgroup plc following shareholder approval at the recent AGM. This will become effective once the Companies House has issued the certificate of incorporation on change of name and a further announcement will be made to confirm the change of name and trading under the new Company ticker FLOW.The Company has also announced that it has signed two key supply contracts, the first with Eaton-Williams Holdings Ltd., and the second with Malvern Boilers Ltd, for the production of its Flow microCHP gas boiler. Confirmation of these key manufacturing partners, as well as the timetable for the first domestic installations of production units, represents another significant positive milestone for the Company. It now intends to manufacture 100 Flow microCHP production units for domestic installation during the winter, under a pilot programme to validate the reliability of the volume production unit.
Forbidden Technologies (LON:FBT 26p/£22.69m)
Forbidden Technologies, the owner and developer of the market leading Cloud video platform, FORscene, has announced that Wall to Wall, part of the Shed Media Group, is using FORscene for series two of The Voice UK, for BBC One. Over 2,500 hours of series two’s content has been ingested. This material was first made searchable and manageable using FORscene’s advanced logging functionality. FORscene was then used to edit sequences and add additional information, via markers, making the platform an essential, integrated part of the post production work flow. Stephen Streater, CEO of Forbidden Technologies, said: “I am delighted that a showcase BBC production is making greater use of FORscene as it moves from one series to the next. I am pleased that more and more productions are extending their use beyond simple logging, using FORscene’s editing features to streamline their post production process.”
Galantas Gold Corporation (LON:GAL 1.38p/£3.52m)
Galantas Gold Corporation, a gold producer and explorer, provided a summary of an updated resource estimate relating to its wholly owned, operational, gold project at Omagh. The drilling program, subsequent to June 2012, was targeted to increase the amount of Measured and Indicated Resources, to increase the confidence of loan finance providers, related to the potential development of an underground mine. There has been an overall increase of 50 per cent in Resources classified as Measured and Indicated from a total of 95,300 troyoz gold (2012) to 142,533 troyoz gold and a 28 per cent increase in Resources classified as Inferred, from 231,000 troyoz gold (2012) to 295,599 troyoz gold. The unaudited, estimated cost of the drilling program was approximately £927,000.
Hardide (LON:HDD 1.22p/£12.57m)
Hardide, the provider of advanced surface coating technology, announced its interim results for the six months ended 31 March 2013. Turnover decreased by 18 per cent to £1.26m (H1 2012 £1.54m), primarily as a result of a major inventory adjustment by a dominant customer. Gross profit decreased by 23 per cent to £855,000 (H1 2012: £1.12m), but revenue from aerospace and advanced engineering sectors increased by 37 per cent and the number of active accounts rose by 34 per cent to 39 from 29 in H1 2012, reflecting the focus on strengthening the pipeline. Cash was £1.39m. Commenting on the interim results, Robert Goddard, chairman of Hardide plc, said: “Our 2013 half year results have been weakened primarily by a rapid inventory reduction exercise by one major customer. This has resulted in what is expected to be a short-term dip in demand and projected to be resolved by the end of 2013. The Company is achieving positive developments technically and with other customers. So, while this set-back is disappointing, the confidence of the Board remains high”.
Ingenious Media Active Capital (LON:IMAC 14p/£20.04m)
The Board of IMAC announced that it has sold its entire shareholding and loan stock in Digital Rights Group Limited (DRG) to Modern Times Group (MTG), a Stockholm-based international entertainment broadcasting group, for a cash consideration of £13.2m. £0.8m of this consideration will remain in escrow for up to 18 months. The outstanding loan notes and accrued interest owed to IMAC by DRG at the time of the sale amounted to £7.1m. Including prior loan note repayments, IMAC will receive a total of up to 2.0x cash return on its original investment in DRG of £8.3m. Following completion of the disposal, IMAC’s cash balances will amount to approximately £21.6m (equivalent to approximately 15p per IMAC share). In addition, IMAC retains its portfolio investments in Whizz Kid Entertainment Limited, Brand Event Holdings Limited, brand Rapport Group and Review Centre Limited which, as at 30 September 2012, were valued in IMAC’s balance sheet at approximately £10.5m. While to date the investing policy has been to return where possible the proceeds of any disposals to shareholders, the Board of IMAC believes that the outlook for the media sector has significantly improved since 2010 and that there are likely to be a number of potential investment opportunities. Furthermore, the Board has been very encouraged by the performance of its fund manager, Ingenious Ventures, in successfully realising investments. Accordingly, the Board intends to review with Ingenious Ventures and key shareholders the options for the future development of IMAC.
Intandem Films (LON:IFM 0.55p/£800k)
Intandem Films, the London based international film group, has announced that it has conditionally raised £831,000 (before expenses) by means of a placing at a price of 0.5 pence to new and existing investors. The Company has also entered into a £1m Equity Financing Facility over a period of 36 months. The Company intends to utilise the proceeds of the Placing to pay down short term debt, to secure select commercial projects and for general working capital purposes. Since the appointment of Robert Mitchell as CEO in February of this year, the Company has continued to make progress in the development of the current slate of films. There are nine fully contracted films in the slate of which four are fully financed, including: Killing Hasselhoff, a comedy thriller starring David Hasselhoff, Starbright, and Second Origin, both sci-fi love stories, and Isolated, a psychological thriller. Intandem, as exclusive sales company, holds sales rights in all export territories for sales of these films. As stated at the time of the half year results for the six months ended 31 December 2012, the Board has taken action to reduce overheads. The Company continues to have limited cash resources until the time of the general meeting and expected completion of the Placing.
KEFI Minerals (LON:KEFI 3.08p/£14.49m)
KEFI Minerals, the gold and copper exploration company with projects in the Kingdom of Saudi Arabia, announced additional trench channel sampling and drilling results from the second drilling programme, and a significant new gold discovery at the Jibal Qutman Licence. A series of seven trenches spaced 50m apart, over 300m of strike, have been excavated . Assay results from five trenches have been received and have returned very encouraging intercepts, including 80m at 1.88g/t Au, 40m at 4.40g/t Au and 41m at 1.56g/t Au. Follow up mapping and trenching on rock chip samples (reported previously on 30th May) grading up to 17g/t Au in an area 3km north of the current area being drilled at Jibal Qutman has resulted in a new gold discovery, called the “3K Hill” prospect. Mapping and sampling elsewhere on the Jibal Qutman Licence has returned rock chip results 19.1g/t Au, 16.4g/t Au and 6.4g/t Au from an area 2km north of the 3K Hill prospect; 17.6g/t Au from an area 1.2km north of the Main Zone; and 8.1g/t Au and 8.0g/t Au from an area 600m east of the JORC Inferred Resource of 313,000 oz Au (from the Main, South and West Zones) at Jibal Qutman. Trenching over these areas is planned to continue in June 2013.
Kryso Resources (LON:KYS 27.38p/£104.38m)
Kryso Resources, the mineral exploration and development company currently developing the Pakrut gold project in the Republic of Tajikistan, announced the details of an Independent Technical Report completed by SRK Consulting China Limited containing an upgraded JORC Code compliant mineral resource estimate and an estimate of contained ore reserves at the Pakrut Gold Project. The report also endorsed the revised capital and operational expenditure estimates, as a result of the proposed final production capacity increasing from 2,000 tonnes per day to 4,000 tonnes per day. This was outlined in the updated Bankable Feasibility Study compiled by the Beijing General Research Institute of Mining and Metallurgy. The report showed a significant increase to measured and indicated JORC Code compliant mineral resource estimates compared to previous resource estimate compiled by Snowden Mining Industry Consultants, measured resources estimate at Pakrut now 1.9 millionoz at 3.16 g/t gold at a 0.5 g/t cut-off (previously 1.76 million oz at 3.00 g/t gold at a 0.5 g/t cut-off) and indicated resources estimate now 660,000 oz at 2.05 g/t gold at a 0.5 g/t cut-off (previously 449,000 oz at 1.83 g/t gold at a 0.5 g/t cut-off). The report also showed proved ore reserves of approximately 1.55 million oz at 3.1 g/t gold at a cut-off of 1.0 g/t and probable ore reserves of approximately 222,258oz at 2.5 g/t gold at a cut-off of 1.0 g/t.
Leyshon Resources (LON:LRL 11p/£27.44m)
Leyshon Resources has provided an update on its Zijinshan Gas Project, located on the eastern fringe of the prolific Ordos Gas Basin in Central China. Its wholly owned subsidiary Pacific Asia Petroleum Ltd. (PAPL) has discontinued the testing of well ZJS6, the second well drilled in the current programme, located on the southern boundary of the licence due to technical problems. The well has a total depth of 2,320 metres with 80 metres of cumulative potential pay interval intersected across fifteen potential pay zones. Several of the zones tested, which elsewhere in the field are dry, have produced water. It has not been possible to isolate or to accurately define the source of the water nor to determine whether these are issues specific to well ZJS6 or more general to this area of the licence. Accordingly the decision has been made to discontinue testing on the well for the time being and to focus exploration and appraisal efforts on the upcoming programme.
LiDCO Group (LON:LID 12.75p/£24.71m)
LiDCO Group, the cardiovascular monitoring company, has provided a trading update at the AGM. Expectations of significant sales growth in 2013 has been matched by a strong overall performance in the year to date. Total revenue for the four months to 31 May 2013 was up 33 per cent on the same period last year and the management remains confident of meeting market expectations for the full year. The increasing support for fluid monitoring within the UK domestic market, which accounted for 68 per cent of total turnover last year, has been very encouraging and this has converted into continued sales growth in the year to date. UK market sales (excluding third party distributed sales) were significantly up year-on-year, with 59 monitor units installed in the period compared with sixteen units in the same period last year.
Metals Exploration (LON:MTL 6.62p/£64.20m)
Metals Exploration, the natural resources exploration and development company with assets in the Pacific Rim region, announced that it has issued and allotted 189,439,766 new ordinary shares at a price of 7 pence, pursuant to a placing for cash, as previously announced on 26 March 2013, expecting shares to be admitted to trading on AIM on 18 June 2013. Following the issue of the new Shares there are 1,158,469,436 ordinary shares of 1p each in issue with each share carrying the right to one vote.
New World Oil & Gas (LON:NEW 0.8p/£5.51m)
New World Oil and Gas, the oil and gas operating company focused on Denmark and Belize, has announced that it has secured a six-month extension in work programme commitment deadlines for Licences 1/09 and 2/09 at its Danica Jutland Project in Western Denmark. This extension was discussed with Danica Jutland ApS and the Danish North Sea Fund, the Company’s 20 per cent full-paying partner, and approved by the Danish Energy Agency, and will allow the results of the recent acquisition of 3-D seismic survey and some soil geochemistry work over the Jensen prospects to be incorporated into a forward work programme on these licences. In addition to allowing New World more time to evaluate the 3D data interpretation and the prospects defined by the survey, the extra six months will provide New World with more time to continue on-going discussions with potential farm-in partners.
One Media iP Group (LON:OMIP 9.25p/£5.92m)*
One Media, the digital media content provider which exploits intellectual property rights around music and video, announced its half year results and an interim dividend of 0.78p for the period ended 30 April 2013. Turnover increased by 32.2 per cent to £1,325,119 (2012: £1,002,302); and the profit before tax from continuing operations, excluding AIM floatation and associated costs, increased by 28.1 per cent to £262,180 (2012: £204,596.) On 18 April 2013 the Group’s shares were admitted for trading on AIM; £750,000 was raised at 8p a share. A US$2,250,000 advance against royalties was received from The Orchard, in line with the distribution agreement signed on 1 November 2012, with a further US$250,000 to be received on or by 30 June 2013. Cash balances were £1,919,668 at 30 April 2013 (2012: £792,938). The Group also announced the acquisition of two new video catalogues, including ‘The Adventures of Skippy’, ‘Alien Autopsy’ and an extension of its existing rights to a previously acquired catalogue of over 400 hours of music documentaries at a cost of US$100,000 plus an ongoing royalty. Finally, the Group announced that it has secured exclusive digital rights to a catalogue of video programs first licensed to the company in September 2011. The content will be made available and exploited exclusively by One Media digitally via YouTube. Containing over 400 hours of content, the 200+ music video-documentaries feature behind-the-scenes and ‘fan-based special feature’ looks at artists such as; David Bowie, the Rolling Stones, Marc Bolan, Limp Bizkit, Lennon & Harrison (the Guitars that Gently Weep), Thin Lizzy, Elvis, Bob Marley, The Royal Philharmonic Orchestra, Andy Williams and the late Tony Bennett. The Directors continue to believe that the Group is well positioned to meet all the demands of the digital market as it continues to evolve and influence consumer demand.
Peninsular Gold (LON:PGL 15.75p/£13.54m)
Peninsular Gold a producing gold mining company with projects located in the vicinity of Raub, Malaysia, announced that gold production from the Raub plant was 4,757ozfor the quarter to March 31, compared with 5,697 oz in the fourth quarter of 2012. The reduction in gold produced was due to a lower average grade treated during the period, reflecting in part the shift towards an increased proportion of tailings being processed. The Raub Plant’s CIL feed tonnage for the quarter was 335,000 tons, which was 13% higher than the previous quarter and 17% higher than in 3Q 2012, due to an increased throughput of tailings from the Gravel Pumping section, which improved both its tonnage per hour and total operational hours. Exploration of the northern licences areas during the first quarter of 2013 was focused on the completion of the Kekabu regional exploration and on the detailed exploration of the Chunchok area. At Kekabu ground geophysics, using a gamma ray spectrometre, not only helped to outline the contour of the mineralised felsites similar to Tersang, but also revealed the presence of other similar intrusives, confirming the presence of several mineralised bodies along the 10km Tersang-Kekabu-Tenggelan trend, while at Chunchok the Company believes that there is a significant potential for a small but high to very high grade mineralisation due to the isolated quartz veins and silicified sulphide-rich zones with gold values between 2 and 12 g/t that were previously discovered (1992) in the meta sediments.
Polymetal (LON:POLY 650.5p/£2,533.52m)
Russian gold producer Polymetal International, announced that on 17 June 2013 its ordinary shares were the first among the shares of international issuers to be admitted to trading and included in the official quotation list on CJSC “MICEX Stock Exchange”, a subsidiary of the Moscow Exchange. The shares will be traded under the ticker POLY in the Main Market segment (in the quotation list B), with quotation and settlement in Russian Rubles, while trading in the shares on MICEX is expected to commence on 20 June 2013.
Proteome Sciences (LON:PRM 60.25p/£115.98m)
Proteome Sciences announced its largest contract to date, a technology agreement with Thermo Fisher Scientific, valued by the Company at US$2.1m, to develop advanced methods to profile changes in key cancer pathways. Proteome Sciences will provide access to its patents covering a three-stage mass spectrometry (MS3) fragmentation methodology to deliver significantly improved analysis and accuracy. Proteome Sciences will receive cash and Thermo Fisher will provide a no-cost lease for mass spectrometry equipment for Proteome Sciences to develop the pathway assays. In addition Proteome Sciences will continue to develop advanced 20 and 30-plex Tandem Mass Tags (TMT(R)) for Thermo Fisher for the next additions to the TMT(R) range of tags. “Our agreement with Thermo Fisher sets a new benchmark to establish and apply novel diagnostic and prognostic strategies in healthcare management,” said Christopher Pearce, Chief Executive of Proteome Sciences. “It has long been our goal to provide clinicians the tools they need to provide early diagnosis of disease and better match molecular targeting medicines to the most likely responders. The output from this agreement should have a profound positive impact on the lives of large numbers of patients suffering from chronic diseases and, at the same time, provide considerable economic benefits to the health care system.”
SocialGO (LON:SGO 0.22p/£1.02m)
SocialGO, a developer and provider of software and related services that allows customers to build their own online social presence, which announced the acquisition of Get On With It Ltd. (GOWIT) in December 2009 has agreed that the final tranche of 5.83m deferred consideration shares, due to be issued in January 2014, be issued now. GOWIT has developed the Company’s SocialGO platform. The consideration for the acquisition was 35m shares of 1p each in SocialGO, with 11.7m shares issued immediately and 23.3m shares being deferred and issued in four equal tranches. Following admission of these shares to trading on AIM, the Company will have a total of 465.3m shares in issue. Two of the vendors of GOWIT, Stephen Hardman and Alex Halliday, are directors of SocialGO and as a result of this issue their interests in the Company will be 5.5 and 6 per cent respectively.
SolGold (LON:SOLG 4.2p/£22.8m)
SolGold, a company engaged in mineral exploration of copper and gold properties in Australia and Solomon Islands, provided and exploration update on its Cascabel Project and said that the surface extent of copper and gold mineralization at the Alpala Prospect continues to grow. The receipt of additional surface channel sample assay results at Alpala Prospect has extended the area of outcropping copper gold mineralisation to more than 400 metres x 200 metres and showed copper grades increase deeper within the Alpala porphyry system. The Company also submitted the final report for the Environmental Permit (Estudio de Impacto Ambiental [EIA]) to the Ministry of Environment, the approval of which will progress the Cascabel concession from Early Stage to Advanced Stage Exploration thereby enabling drilling to occur. SolGold finalised its Alpha Prospect drill holes for Stage 1 drilling, alongside upgrading access tracks and infrastructure for drill rig mobilisation in advance of the issuance of the EIA to carry out advanced exploration. Apart from the highly prospective Alpala Prospect, there are currently four other target areas within the Cascabel tenement, which will be investigated further over the next 6 to 12 months: Quebrada Tandayama-America, Aguinaga and Quebrada Moran, which are prospective for copper-gold porphyry deposits, and Rio Cachaco which is prospective for epithermal gold style mineralisation.
Sorbic International (LON:SORB 8.62p/£4.93m)
Sorbic International, the third largest sorbates producer in China, announced its un audited Interim Results for the six months period ended 31 March 2013. EBITDA for the period more than doubled to £0.79m (H1 2012: £0.33m) after foreign exchange gains of £0.3m (H1 2012: loss £0.1m) and a gross profit margin for the period of 10.7 per cent (H1 2012: 9.0 per cent) was recorded. Revenue for the period was £7.0m (H1 2012: £8.3m) and the Company made a net profit after tax of £0.36m (H1 2012: loss of £0.14m). The Company had a net cash balance at the end of the period of £5.341m (H1 2012: £4.039m). The Board continues to consider proposals regarding the building of a new factory in Linyi, to be funded by the Linyi authorities.
Sprue Aegis (LON:SPRP 96p/£37.65m)
Sprue has successfully tendered with The Consortium and the Yorkshire Purchasing Organisation (YPO) for the supply of home safety products to the UK Fire & Rescue Services (UK F&RS). These framework agreements replace the Firebuy agreement with the UK F&RS which lapsed in the second half of last year. The Consortium framework comprises four separate product categories and commenced on 10 June 2013 for an initial term of three years with an optional 12 month extension at the discretion of The Consortium. Sprue is the only manufacturer to be listed in all four categories. The YPO framework comprises five separate product categories and commenced on 3 April 2013 for a term of four years. Sprue is listed in all five categories. The UK F&RS continue to access Sprue’s range of products under these purchasing framework agreements which include products specifically designed for the deaf and hard of hearing and for the visually impaired.
Summit Corporation (LON:SUMM 4.38p/£15.49m)*
Summit, a drug discovery and development company advancing therapies for Duchenne Muscular Dystrophy and C. difficile infections (CDI), yesterday announced that it has achieved a clinical research milestone in the development of its novel CDI antibiotic SMT 19969 triggering a £740,000 payment under the Company’s existing Translation Award from the Wellcome Trust. The milestone was achieved after SMT 19969 successfully completed a Phase 1 clinical trial in healthy volunteers. Current development activities are focussed on preparing SMT 19969 to enter Phase 2 clinical proof of concept trials in patients with CDI. This work includes the manufacture of the final dose form of SMT 19969 and finalising the design of the patient trial with the regulators and company clinical advisors. It is anticipated that a Phase 2 clinical trial will commence in H1 2014. The development of SMT 19969 is being substantially supported by the Wellcome Trust through a Translation Award worth up to £4.0m, Originallyawarded in 2012, it will take the project through to completion of Phase 2 clinical trials. Summit also announced the appointment of Dr David Roblin as the Company’s Chief Medical Officer (CMO). During an extensive career in the pharmaceutical industry, Dr Roblin has successfully developed drugs through clinical trials and market launch across several therapy areas including infectious and metabolic diseases. Dr David Roblin has held a number of senior leadership roles at Pfizer and Bayer where he was involved in research, development and commercialisation.
The TEG Group (LON:TEG 6.12p/£11.54m)
TEG announced that it has been awarded a new contract by Perth and Kinross Council for the treatment of co-mingled food and green waste, green waste and food waste at its In Vessel Composting (IVC) and Anaerobic Digestion (AD) plants at the Group’s Glenfarg, Perthshire facility. The co-mingled food and green waste will be processed in the IVC, the green waste will be composted at an open air windrow facility and the food waste will be processed in the AD facility. The contract will commence in June 2013 and is for a two-year term with a potential option to extend for a further two years. The volume of waste is expected to be 20-25,000 tonnes per annum and the overall revenues will be in the region of £1.8 – 2.0m over the initial period of the contract. Commenting for TEG, Chief Executive Mick Fishwick said: “The performance of the Group’s operational business has continued to be very good to date in 2013 and this contract will further underpin the sustainable revenues and profits that side of the business bring to the Group.”
Tracsis (LON:TRCS 159.5p/£40.27m)
Tracsis provided an update on current trading and developments across the Group. The integration of Sky High is underway and progressing well. The acquisition was incorporated into the wider Group’s trading as of 17 April 2013. The elimination of surplus PLC related overheads combined with other immediate synergies has enabled both cost savings and performance improvements. This has led to an enhanced operating margin for Sky High and management expectation is that the newly acquired business will make a good contribution to the Group’s overall performance for the period to 31 July 2013. Condition Monitoring has performed extremely well during the current financial year, and has secured strong orders from outside of the framework agreement. The Group is currently involved in negotiations with a major customer to continue the next phase of a significant Framework Agreement for its condition monitoring technology. The timing of the prospective contract extension indicates that potential major orders for the Group are expected in late 2013 or early 2014, assuming successful renewal. A further update will be provided in due course. Tracsis has entered into a long term agreement with one of the major train operating Groups for retention of its consultancy and software services, and expects to work with most of the other bidders in varying capacities. Looking ahead, the next few years should be a period of stability in the consultancy and software offering and allow the Group to invest in a broader range of products and services. The Group is pleased to announce that revenues for the year ending 31 July 2013 are forecast to be in excess of £10m and underlying profits are in line with previous market expectations.
Versarien (LON:VRS 13.65p/£11.32m)
Versarien, the advanced engineering materials group, announced the commencement of dealings on AIM. In conjunction with Admission, the Group raised £3.0m before expenses through a placing at 12.25 pence per share. Immediately following Admission, the Company had a market capitalisation of £10.2m at the placing price. The net proceeds of the Placing will be used to satisfy the cash consideration due in respect of the acquisition of Total Carbide Limited and to provide working capital for the Group. Versarien develops advanced micro-porous metals for thermal management. These open celled metallic foams have exceptionally high surface area to volume ratios, making them ideal for heat transfer, heat exchange, catalysis and energy storage. Versarien is initially targeting cooling systems for central processing units (CPUs), found in high performance workstations (engineering, science, CGI, animation), computer clusters, super computing infrastructure and data centres. The Group’s initial product, VersarienCu, a micro-porous copper, can improve efficiency by up to ten times when incorporated into liquid cooling systems. Upon Admission, Versarien acquired Total Carbide Limited, a manufacturer of sintered tungsten carbide components, fromElektron Technology (LON:EKT) for a total consideration of £2.28m satisfied as to £1.58m in cash and the balance in shares. The acquisition of Total Carbide will give Versarien access to manufacturing assets to expand production of VersarienCu, but also as part of Versarien’s expansion strategy as a developer and manufacturer of advanced materials. Since the Company listed, the share price has risen 8 per cent to 13.5p.
ValiRx (LON:VAL 0.44p/£7.53m)*
ValiRx, a life science company with a focus on cancer therapeutics for personalised medicine, last week announced an update relating to the recent progress of its lead therapeutic compound and its clinical progression and development. VAL201, ValiRx’s leading anti-cancer therapeutic, which is in the clinical development phase for prostate cancer among other indications, has seen continued good progress undertaking the steps required in the development of its anti-cancer drug. An expanded and adaptive clinical protocol for the first-in-man studies has been agreed with all the relevant parties. The protocol covers all stages of clinical development from before the compound’s introduction to the test subject, through the evaluation of tolerability and safety into the early assessment of efficacy, and subject to review will permit the compound to move efficiently into later phase 2 efficacy studies. The protocol also opens the possibility of widening the scope of the study from the initial prostate cancer indication based on the results obtained. With this expanded vision of the trial protocol, various enhancements to the toxicology package have been undertaken and are reaching their conclusion. No significant adverse events have been reported to date and the first-in-man trial is expected to provide results by the year-end, as previously reported. In addition, the Institut Paoli-Calmettes in France has provisionally agreed to conduct further efficacy studies and undertake clinical studies on the use of VAL201 in additional oncological indications. In support of this, the clinical GMP manufacturing process has been optimised so as to provide material of suitable quality and quantity and at reasonable cost, to cover all possible trials and in compliance with all regulatory requirements throughout the whole process to potential registration.
*A corporate client of Hybridan LLP
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The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.
12th June 2013
This week: Fast growth for FJET, A LID on hospital stays and successful pilot for SUN
Last week saw the FTSE100 fall another 184 points to 6,411, and the AIM All share also made a small decline of 10 points to 719. Suggestions from various US and EU leaders that the financial crisis is probably over has led to expectations of central banks scaling back stimulus measures and rising bond yields. Certainly various industrial and consumer indicators at home suggest that economic prospects are improving and further QE may not be required. This week sees the release of industrial production numbers in Europe and claimant rate and jobless claims in the UK. The US calendar is busier with investors expecting to see further signs of recovery in jobless claims, industrial production/capacity utilisation and the University of Michigan Confidence index.
Social Stock Exchange launch, SSE
Last Thursday Prime Minister David Cameron announced the launch of the Social Stock Exchange (SSE) a new initiative designed to connect the public financial markets with social impact investment. The SSE gives investors access to information on publicly listed businesses with strong social and environmental purpose, and guarantees full and transparent disclosure on the impact of those businesses. The Prime Minister has highlighted in a speech ahead of the G8 summit that the SSE demonstrates that the UK is at the heart of financial innovation and social investment. The global market for social impact investment is estimated to be worth $9bn and expected to grow to between $200bn and $650bn in the next decade. Today also sees the announcement of the first member companies to be admitted to the SSE. They are high growth businesses in markets such as social and affordable housing, clean-tech, waste, water, recycling, renewable energy, sustainable transport, health, education and culture. Alongside ValiRx (LON:VAL) which is mentioned below and Straight (LON:STT), they include Ashley House (LON:ASH), V22 (LON:V22O.PL), Scope, Places for People, ITM Power (LON:ITM), Good Energy (LON:GOOD), Primary Health Properties (LON:PHP), Halosource (LON:HAL) and Accsys (LON:AXS). A further 12 companies are currently pending admission, following the SSE’s rigorous three stage admissions process, which includes the requirement to be admitted to a regulated Stock Exchange (hence the role of London Stock Exchange Group in supporting this initiative), the production of an Impact Report and assessment by the SSE’s Admissions Panel, formed of leading social impact investment experts.
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APH acquisition, ARTA Belgacom order, CRND Operational Update, DDD 3D tablet license agreement, FIP company receives grant, FJET Chairman resigns & funding line terminated, GAL Q1 Results, HMB Final Results, IDEA Strategic partnership, ITM Corporate and Technical Due Diligence, KLG Copper Project Update, KSI Share suspension, KYS Final Results, LID trial successful, MTL Placing, NYO Northern Block Update, OMI Operational Update, OUT Supply agreement, OVG Final Results, PLE Preliminary Results, POLY Exploration update, PRES Half yearly report, SND Interim results, SUMM AGM and Update, SUN pilot tests successful, TEG Contract win, THAL Ecuador contract, TRT Placing and Anglo contract, TSG Final Results, VAL founder member of the SSE, VIP Extension of product offering
Alliance Pharma (LON:APH 37.12p/£92.28m)
Alliance Pharma, the speciality pharmaceutical company, announced last week that its wholly owned subsidiary Alliance Pharmaceuticals Limited has acquired all existing rights to SyntometrineTM from Novartis for a consideration of US$11.5m. Alliance already owns the UK rights to Syntometrine, an obstetric drug used in the final stage of labour. Novartis and its affiliates have been selling Syntometrine in a number of countries worldwide including Australia, South Africa, Malaysia and New Zealand. In the 12 months to March 2013 the total sales of Syntometrine by the Novartis Group were US$3.2m and the gross margin generated was US$2.8m. Alliance expects to have annual distribution and operating costs of approximately £0.5m associated with these new territories. The US$11.5m consideration is being funded from existing cash and bank facilities, including a £3.5m draw down from the Group’s £30m acquisition facilities. This leaves £10.0m of the facilities available to fund further acquisitions. In addition to the Syntometrine rights, Alliance will be acquiring inventory which is expected to have a value of approximately US$0.3m.
Artilium (LON:ARTA 8.5p/£18.3m)
Artilium, the provider of innovative telecommunication software and solutions, reported a significant new order from Belgacom. Belgacom has decided to extend the use of the ARTA platform in its mobile wholesale business and prolong the existing relationship with Artilium for at least three years. This gives Belgacom access to the full functionality of the ARTA mobile Communities platform. Also Belgacom has decided to outsource the support and maintenance of this platform to Artilium. The initial delivery value of this order for 2013 is around EUR1m. Patrick Morley, Chairman, commented: “This new order by Belgacom shows that Artilium has developed a roadmap that is attractive to our customers. This is a strong signal that the quality of our managed services is now recognized in the market and a further proof that Artilium is a trusted partner of world class operators like Belgacom.”
Central Rand Gold (LON:CRND 14p/£4.48m)
Central Rand Gold Limited, a South African gold mining and exploration company, provided an update detailing significant events that occurred during the first four months of 2013. Mining operations have progressed well with total mining production of 83,597 tonnes against a target of 83,604 tonnes, with overall mined grade at 3.25g/t, slightly lower than in 2012 where 3.92g/t was achieved. The drop in grade is not seen as permanent and the grade will continue to fluctuate depending on the specific mining area, but the Company is confident that overall grade of 3.57g/t is achievable over the mine’s life. Further development during the first quarter of the year has opened up additional mining fronts, providing the Company with greater mining optionality and flexibility. Mine Call Factor, or MCF, continued to show steady improvement throughout the first four months of 2013 and current indications are that May will mirror this trend and even exceed the April figure. Financially the Company’s cash and cash equivalents balance at the end of April 2013 were at $2.1m, down from $4.5m in December 2012. A recent drop in the gold price has also put additional strain on cash reserves, but this is somewhat offset by the weakening Rand/Dollar exchange rate and improving MCF.
DDD Group (LON:DDD 18p/£24.56m)
The 3D solutions company has licensed its TriDef 3D Mobile content solutions to Hampoo Science & Technology Co. Ltd for the world’s first 10.1″ glasses-free 3D tablets for mass production. Based in China, Hampoo is a leading innovative mobile interactive device solution provider. Hampoo’s new 10.1″ tablets use the TriDef 3D Mobile solution to automatically convert 2D photos, videos and games into 3D. The screens are high definition and provide 3D viewing without the need to wear glasses. The tablets are expected to launch in the third quarter of 2013. DDD will receive quarterly royalty revenues from Hampoo based on the volume of 3D tablets shipped. TriDef 3D Mobile allows over 50 of the latest popular Android mobile games, including “Angry Birds”, “Blood and Glory” and “Cordy”, to be played in stereoscopic 3D ‘off the shelf’, even though the games were not specifically developed for 3D. The Hampoo tablets are also compatible with the soon-to-be-released Yabazam 3D Android app, which provides the same original 3D programming available via DDD’s Yabazam content portal. Yabazam has over 80 streaming 3D movie titles for viewing on 3D consumer devices and that number is expected to grow significantly over the next year.
DDD Group also this morning reported an AGM Statement that it will report at its AGM later today. DDD stated that first quarter results were in line with the Board’s expectations. The Group plans to publish a Trading Update in mid-August following receipt of royalty reports for the six months to 30 June from its licensees. Results for the first half of 2013 are expected to be published in late September.
fastjet (LON:FJET 1.22p/£29.90m)
fastjet announced that it has terminated the convertible securities deed signed 7 March 2013 having issued no further securities under the Convertible Securities Deed beyond the initial nominal amount of £2,556,750 announced on 8 March 2013. David Lenigas, Chairman of the Company said: “The fastjet board have, after a careful review, decided that the funding provided by the Convertible Securities arrangements does not represent best value for the Company, because primarily of its potential impact on the Company’s share price. The Board believes other sources of finance available to the company to be in the better interests of the Company and its shareholders and has accordingly terminated the Convertible Securities Deed.” In a separate update, David Lenigas announced that he would step down as Executive Chairman immediately, to be replaced by Ed Winter as CEO. Ed Winter noted: “…we have seen real growth in passenger sales revenue in Tanzania. fastjet Tanzania has taken in excess of $1.8 million revenues for the month, up approximately 50 per cent compared with the start of the year. Revenue per passenger has also increased by 62 per cent since the beginning of 2013. On top of this, our sustained growth in both Angola and Ghana is particularly pleasing. Ghana continues to grow revenues (up 25 per cent year on year) and our Angolan operation has reported a 63 per cent increase in passenger numbers in the last five months.”
Fusion IP (LON:FIP 60p/£65.66m)*
The university commercialisation company that turns world-class research into business last week announced that Fault Current Limited (FCL) has been awarded a £635,000 grant from the Department of Energy and Climate Change (DECC). The DECC Energy Entrepreneurs Fund grant will enable Fault Current Limited to develop and test its next-generation fault current limiter for sale to distribution network operators and renewable energy generators. FCL, which is founded on the invention of Dr Jeremy Hall of the Wolfson Centre for Magnetics, based at Cardiff University’s School of Engineering, has devised a unique magnetic fault current limiter design that protects utility electrical distribution networks from unanticipated power surges. The need for fault current limiters is driven by a dramatic increase in electrical power system fault current levels as energy demand increases and more clean energy sources, such as wind and solar, are added to an ageing and already overburdened national electrical infrastructure. Deployed in an electrical network substation, a fault current limiter is a smart grid system component that can help protect the grid by absorbing the destructive nature of faults, extending the life of existing network equipment and allowing utilities to defer or eliminate costly equipment replacements or upgrades. Unlike competing faults current limiters currently in service, FCL’s unique solution is designed to be a completely passive, ‘fit and forget’ permanent magnet device, that requires no external power or back-up, recovers automatically when a fault is cleared and requires minimal maintenance.
Galantas Gold Corporation (LON:GAL 1.25p/£3.20m)
Galantas Gold Corporation, a gold producer and explorer in Ireland, announced its financial results for the Quarter Ended March 31, 2013. The Company reported net loss of CDN$440,554 (March 31 2012: net loss of CDN$643,389), while cash loss generated from operating activities before changes in non-cash working capital for the first quarter of 2013 amounted to CDN$239,907 (2012: CDN$ 303,318). Sales for the period amounted to CDN$ 364,676 (2012: CDN$ 1,025,146) a reduction due to the lower level of metal produced and shipped during the first quarter. The lower production levels were primarily due to the requirement to process lower grade ore from stockpile as a result of difficulties in accessing ore from the open pits. There was a decrease in various production costs at the Omagh mine including production wages, oil and fuel costs, repairs and maintenance, equipment hire and consumables which lead to cost of sales for the quarter amounting CDN$ 397,588 (2012: CDN$ 1,020,507). The Company had cash balances at March 31, 2013 of CDN$ 823,661 (2012:CDN$ 2,924,890) and the working capital deficit amounted to CDN$ 2,772,908 (2012: deficit of CDN$ 2,072,975). The main production focus during the first quarter has been the on processing of ore from the low grade stockpile together with limited open pit mining on the Kerr vein. Production from Kearney became totally restricted from the second half of 2012 as a result of the surplus rock stockpile on the site reaching capacity levels. The major focus of exploration activities in 2012 and the first quarter of 2013 has been the continuation of the successful drilling programme. In total, 16,707 metres have been drilled since the programme commenced in March 2011 and significant gold intersects have been reported.
Hambledon Mining (LON:HMB 1.22p/£12.0m)
Hambledon, the gold mining, exploration and development group, announced its final results for the year ended 31 December 2012. During the period revenue increased to $38.9m (2011: $33.3m) while cost of production (including depreciation and royalty payments) increased to $1,584 (2011: $1,417) per ounce due to a provision against ore stockpiles of $5.7m (2011: $1.6m) due to production costs being higher than the net realisable value of the gold contained within the ore. Loss before taxation from continuing operations was $1.8m (2011: loss of $1.2m), before the exceptional items tailings dam provision $10.3m, (2011: $7.8m), provision against long term stock pile $5.7m (2011: $1.6m) and provision against amounts due in relation to Akmola investment of $3.6m. The Company raised $11.7m (net of expenses), on 1 February 2012, through the placing of ordinary shares, raising approximately $9.06m and $3.0m equity investment from European Bank for Reconstruction and Development, leading to a cash position of $2.6m (2011: $1.8m) at the year end. The Company was happy to announce a 7.8 per cent increase in gold production in 2012 and ore mined increased to 654,000t from 591,152t in 2011. A 22,000m exploration drilling was completed in 2012 and a drilling programme continues with additional drilling focused on the deeper ore bodies and reaching depths of over 20m. The entire drilling programme was increased from 25,000m to 38,000m. Management is encouraged by early drilling results and is targeting a considerable increase in underground gold resources following completion of the drilling program in 2013.
Ideagen (LON:IDEA 20.12p/£24.5m)
Ideagen announced that it has signed a strategic partnership with a leading global manufacturer of medical devices to supply the company’s order communications software, dartOCm, into the UK NHS. dartOCm is an application platform which provides context related intelligent information management of pathology services for both hospitals and GP clinicians. The solution enables the ordering of appropriate tests while delivering “paperless” results back to the clinician with real time notifications and alerts in a centralised patient record. The partnership has resulted in an immediate £150k contract to supply the dartOCm system to an Acute Trust in the Midlands, which will be used as a ‘lighthouse’ pilot to demonstrate the compelling value proposition of the solution in terms of both operational and financial benefits. It is expected that, if successful, the planned regional roll out will generate a significant, multi-year contract for Ideagen supporting 10,000 users across 700 sites, and provide a strong reference to accelerate further roll-outs in to new networks across the country.
ITM Power (LON:ITM 42p/£51.58m)
ITM Power, the energy storage and clean fuel company, has announced that, following the conclusion of non-disclosure agreements, it has allowed three corporate customers access to a data room of technical and corporate information. The three customers, which at this stage are confidential, are a global gas group, an oil major and an aerospace and defence company. The outcomes of the due diligence processes have been very positive. The Company prepared a suite of documentation for data room examination and disclosed technical files together with R&D pipeline activities, planned product development and details of costs and cost reduction programmes going forward. The process included witnessed testing of two PEM electrolyser stack platforms against specific operating conditions, the purpose of which was to verify performance, durability and rapid response characteristics. In addition, bespoke system designs capable of accepting direct renewable power and rapidly modulating power profiles have been examined and comprehensively tested on-site. The results have further added to confidence in ITM Power’s core technology, its product development process and after sales support. Last week ITM Power also announced that it had joined the London Social Stock Exchange as one of the founder members.
Kalimantan Gold (LON:KLG 3.75p/£3.69m)
Kalimantan Gold Corp. Ltd, a junior gold explorer listed on both the Toronto Stock Exchange and on AIM in London, announced further drill results from its ongoing delineation and scout drilling programs at Beruang Kanan, a planned extension program there and an update on its deep drilling program. The extension program will be assessed and amended on an ongoing basis depending on results and drilling requirements at other prospects. The current plan is to drill out a total north-south strike length of more than 1750m. This does not include the Beruang Kanan polymetallic zone that is located approximately 1000m north of BK42 on the far northern end of the prospect area. Drilling of this zone, where outcrops of massive VHMS (volcanic-hosted massive sulphide) lodes occur, will be considered once the airborne gravity survey currently being undertaken has been completed. Deep drilling at Beruang Tengah is continuing at the Bukit Dea zone where surface grab samples from this prospect returned up to 9.7 grams per tonne gold from quartz veins related to northwest trending structures. Drilling results indicate epithermal style mineralisation at depth and whilst the holes did not produce any significant assays both the soil geochemical and deep magnetic anomalies have only been partially tested at Beruang Tengah and there remains a substantial area to the north and south of the drilled portion of the prospect in which to host a mineralised porphyry intrusion.
Kleenair Systems International (LON:KSI 2.375p/£1.7m)
The Board of Kleenair Systems International, the investment company, has noted the recent share price movement and announced that it is in an advanced stage of discussions in relation to an acquisition which would constitute a reverse takeover under Rule 14 of the AIM Rules for Companies and will therefore be conditional, inter alia, upon the publication of an admission document by the Company and the approval of Kleenair’s shareholders at a general meeting. In accordance with the AIM Rules, trading in the Company’s ordinary shares was suspended with effect from 16.00 on Monday, 10th June pending publication of an admission document by the Company or an announcement that the proposed acquisition is no longer proceeding.
Kryso Resources (LON:KYS 28.88p/£110.10m)
Kryso Resources, the mineral exploration and development company currently developing the Pakrut Gold Project in the Republic of Tajikistan, announced its final results for the year ended 31 December 2012. The Company was happy with the completion of debt financing in May 2012 for the Pakrut Project and the loan facility secured for US$10m and RMB 530m (approximately US$83.5m) from China Nonferrous Metals Int’l Mining Co. Ltd, the Company’s largest shareholder. In August, China No.15 Metallurgical Construction Group Co. Ltd was awarded the contract for construction of the underground mine at the Pakrut Project and construction has commenced and Kalimantan is confident the Project will be brought into production in 2014. During the period development expenditure was $30,520,000 (2011: $4,776,000) reflecting the commencement of mine construction and the Company’s overall loss for the year was $2,852,000 (2011: $1,392,000). Kalimantan Gold closed the year with a strong cash position of $26,085,000 (2011: $11,050,000) after a successful $26,878,000 raise in equity funding during the period from the exercising of warrants and options.
LiDCO Group (LON:LID 11.5p/£22.29m)
The cardiovascular monitoring company last week announced that its LiDCO rapid monitor has been used successfully to monitor cardiac output and guide intravenous fluid therapy in a randomised clinical trial on enhanced recovery versus standard care following open liver resection. This clinical trial involved 91 patients and was carried out at the Royal Surrey County Hospital and the results were published recently by the British Journal of Surgery. The 91 patients were randomly allocated to receive standard care or an Enhanced Recovery Programme (ERP). The patients in the ERP were monitored using the LiDCO rapid system. LiDCO rapid is a hemodynamic monitoring system that uses a specific algorithm derived from the analysis of the pulse power of the arterial waveform to calculate the stroke volume from the heart. Overall, the trial confirmed that using an ERP that included goal directed fluid therapy (GDFT) monitored by the LiDCO rapid system reduces the length of stay by three days for patients undergoing open liver resection and post-operative complications were reduced (to 7 per cent versus 27 per cent in the control arm). This better care has led to an improvement in short term quality of life for the patients in the ERP GDFT arm of the trial.
Metals Exploration (LON:MTL 7.12p/£69.04m)
Metals Exploration, the natural resources exploration and development company with assets in the Pacific Rim region, announced that it has received valid applications for a total of 5,195,877 new ordinary shares under the Open Offer that closed on 31 May 2013, raising a total of £363,711.39 for the Company and representing approximately 9.6 per cent of the amount available for acceptance under the Open Offer. Following the close of the Open Offer the Company has issued and allotted 5,195,877 new Ordinary Shares at a price of 7 pence per new Ordinary Share pursuant to the Open Offer.
Nyota Minerals (LON:NYO 1.2p/£10.51m)
Nyota Minerals Limited, the gold exploration and development company in East Africa, announced the discovery of a new gold anomaly at the Boka-West target in the Company’s 100 per cent owned Northern Block exploration licence areas located in Western Ethiopia. The combined gold-in-soil geochemical anomaly is defined by samples containing in excess of 0.020 parts per million gold, with a peak of 0.390ppm gold and extends for some 2km north – south and is up to 500m wide. The Company said that three out of the five trenches assayed so far have returned significant Au intersections. Chief Executive Officer, Richard Chase, commented: “The delineation of a large target at Boka-West is testament to the success of our systematic exploration programme in the Northern Blocks. The continued exploration of our greenfield exploration assets is an important facet of Nyota’s development strategy, complementing our advanced pre-production project at Tulu Kapi.”
Orosur Mining (LON:OMI 10.25p/£8.01m)
Orosur Mining Inc, the South American focused gold producer and explorer, announced that production for its financial year ending 31 May 2013 was 64,997 ounces of gold, ahead of the Company’s guidance of 63,000 ounces for the full year announced on 29 April 2013 and in the middle of the initial guidance range of 63,000 to 68,000 ounces for the year provided on June 14, 2012. As previously announced, the Company has initiated an operational improvement program focused on cost cutting measures. As a result, the Company has restructured the mining and processing areas as well as its administration and corporate expenditure, reducing employee numbers by around 20 per cent. Additionally, the Company has elected to reduce the price used to optimise its mine plans from $US1,300 to $US1,100 to safeguard the reserves against unexpected gold price changes. Although that implies a reduction in reserves, as higher cost ounces are removed, the Company is focused on reducing unit cash costs while maintaining a mine plan of approximately three years producing 50,000 to 55,000 ounces per year. Production for the 2013/14 financial year is expected to be 50,000 to 55,000 ounces of gold.
Outsourcery (LON:OUT 125.5p/£38.69m)
Outsourcery, the provider of cloud-based IT and unified communications services, has been accepted onto the Government’s G Cloud Framework. The G Cloud is the mechanism by which public sector organisations can procure flexible cloud-based services to allow them to take advantage of new technologies and achieve business benefits. The acceptance of a number of Outsourcery’s products, including Platform as a Service (PaaS) and Software as a Service (SaaS), is a strong affirmation of the Group’s security credentials. Outsourcery has been delivering cloud services through partners since 2007. This framework will enable the Group’s key partners to utilise the G Cloud, helping to take their own cloud services, powered by Outsourcery, to the public sector.
Ovoca Gold (LON:OVG 10.25p/£8.95m)
Ovoca Gold, a Russia-focused gold miner, announced its results for the year ended 31 December 2012. The Company reached an agreement in December 2012 for the sale of the Olcha gold-silver deposit to Polymetal International plc for a consideration of 775,000 shares in Polymetal (which had a value of US$13.5m as at the date of the agreement announcement). This transaction was completed in January 2013. The Company reported a loss of EUR2.231m and had cash and cash equivalents and available for sale financial assets of EUR26.595m as of 31 December 2012. During the period, Ovoca appointed Kirill Golovanov as the new chief executive director, while former CEO Tim McCutcheon remained as a non-executive director with the Company. Over 22,000 tonnes of ore material were processed at the new Stakhanovsky processing plant, with final samples sent to Alex Stewart Laboratories in Moscow for fire assay. The Company conducted exploration work on five prospective sites on its Rassoshinskaya licence area, where over 4,800 meters were drilled on, with an additional 3,166 meters of trenching.
Polymetal (LON:POLY 644p/£2,508.21m)
Polymetal International updated on exploration results at its Maminskoye development project. Wide high-grade intersections were returned from step-out drill holes positioned outside of the currently estimated reserve pit boundaries at depths which remain suitable for open-pit mining. Polymetal plans to continue step-out drilling at the property and expects to publish the new development timeline for the asset in Q4 of 2013.The Company also announced that it has signed two export sales contracts with Chinese off-takers for a total volume of up to 50 carat of refractory gold concentrate produced at the Mayskoye mine, to be delivered in 2013. Under the first of these contracts, the Company will sell 15 Kt of concentrate, with the option to increase this volume to up to 35 Kt at Polymetal’s discretion. The first shipment under this contract is expected in late July – early August 2013, immediately after the start of navigation at the port of Pevek. Under the second contract, Polymetal will sell 5 Kt of concentrate with the option of selling up to an additional 10 Kt of concentrate. The Company anticipates that the first shipment under this contract shall occur in late August – early September 2013. The Company estimated that the extra cost of selling the Mayskoye concentrate to off-takers, versus processing it at the Amursk pressure oxidation facility, is approximately US$250 per ounce of gold. Polymetal believes that shipping Mayskoye concentrate to several third-party off-takers in 2013 creates a significant strategic optionality that will allow the Company to achieve better terms in relation to long-term sales arrangements to be negotiated with selected buyers in Q1 2014. The Company is currently evaluating two more potential options for 2013 with the off-takers outside China, with the final decision expected to be made by the end of June 2013.
Plethora Solutions Holdings (LON:PLE 1.95p/£6.75m)*
Plethora announced its audited preliminary results for the year ended 31 December 2012. Just prior to the period, Plethora at the end of 2011 completed a financing in part to provide the funds to pursue regulatory approval of PSD502 in Europe through a centralised application with the European Medicines Agency (EMA). It was anticipated that this process would take until 2013 to obtain the EMA’s final decision on approval. The Directors consider that PSD502 has always been the Company’s most valuable asset and commercialising it will create greatest shareholder value. During 2012 Plethora completed all steps planned for the year toward obtaining regulatory approval. In March 2012 the Company announced that it had held the pre-submission briefing meetings individually with the Rapporteur and Co-rapporteur and the Company reported that the Briefing Package was reviewed and all sections, including non clinical, clinical and manufacturing, were found to be entirely consistent with all regulatory requirements for submission of a registration dossier. In June 2012 the Company announced that it had filed the completed dossier with the EMA for the approval of PSD502. Post period; in February 2013 the Company announced that PSD502 would become the Company’s sole focus of activity. Since the submission of the dossier, Plethora has received the first round of questions from the EMA, the “Day 120 Questions”. Responses to these have been submitted to the EMA within the permitted time lines and the Draft Assessment Report has been received from the Rapporteur and Co-Rapporteur. While approval is absolutely a matter for the EMA in its sole discretion, from the Company’s review of the situation there are no matters which it believes should prevent approval. The Company anticipates that the EMA will conclude its review and recommendation to the EU for approval in the second half of 2013 in line with the prescribed timetable. During 2012 the Company stated that it had started talks with a number of companies for the commercialisation of the product – these talks continue. It should be expected that upon signature of such a transaction the Company will receive upfront and milestone payments and then royalties on eventual sales. Following completion of the recent financing Plethora has engaged a specialist consulting firm to expand and accelerate its licensing activities. Regarding the Urology Company, over the course of 2012, revenues were £582,000 (2011: £181,000) with an operating loss of £1,046,000 (2011: £1,191,000); and while the revenue growth and reduced losses were encouraging, the business has not reached the expected levels of growth and profitability. In February 2013, post period end in light of the Company’s capital requirements, the Directors concluded that it would conduct a strategic review of The Urology Co. The Directors concluded to place it into administration on 25 February 2013. At 31 December 2012 the Group had total borrowings of £4,413,000 (2011: £2,711,000), but on 15 March 2013 the Company announced a restructuring of its borrowings, which was subject to completion of the associated equity financing and this was completed on 5 April 2013. Part of the restructuring was to waive all prior defaults and as at that date all facilities were brought back into full compliance with their terms. In addition, it has been agreed that the maturity of these facilities be extended to 31 December 2014 and beyond.
Pressure Technologies (LON:PRES 167.5p/£19.03m)
Pressure Technologies, a designer and manufacturer of speciality engineering solutions for high pressure systems, announced its interim results for the six months to 30 March 2013. Revenue was up 30 per cent at £16.4m (2012: £12.6m), with pre-tax profit of £1.33m (2012: £0.46m). The progressive dividend policy was continued with an interim dividend of 2.6p per share (2012: 2.5p) leaving net cash of £2.7m. The Company noted an improving trend in order intake with good opportunities for further growth across all markets and reiterated its ongoing commitment to its organic and acquisitive diversification strategy.
Sanderson Group (LON:SND 52p/£22.78m)
Sanderson Group, the software and IT services business specialising in the multi-channel retail and manufacturing markets in the UK and Ireland, announced interim results for the six month period ended 31 March 2013. Revenues from continuing operations increased to £6.37m (2012: £6.14m). There was an increase in excess of 13 per cent in operating profit from continuing operations amounting to £0.91m (2012: £0.80m) and profit before tax from continuing operations of £0.85m (2012: £0.41m). Net cash increased to £4.50m (2012: £3.56m) and the interim dividend rose 30 per cent to 0.65p per share (2012: 0.5p). Commenting on the results, Chairman, Christopher Winn, said: “Whilst general UK trading conditions remain challenging, Sanderson has continued to generate cash strongly and to invest both in its products and services as well as in its sales and marketing capacity and capability, together producing an improved performance in the first half”.
Straight (LON:STT 34.75p/£4.13m)
STT admitted to the Social Stock Exchange Straight – as with others last week – announced it admitted to the Social Stock Exchange. Straight is a company rooted in its desire to improve the environment by recycling and conservation efforts. Its admission to the Social Stock Exchange provided a clear stimulus for Straight to redefine its environmental and social impact goals and credentials. In light of this, the Company has created clear metrics that demonstrate its commitment to this and its corresponding positive actions. Straight will now focus on a broader range of environmental and social issues.
Summit Corporation (LON:SUMM 4.12p/£14.61m)*
Drug discovery and development company advancing therapies for Duchenne Muscular Dystrophy (DMD) and C. difficile infections (CDI), last week held its Annual General Meeting Chief Executive Officer, Glyn Edwards, made the following statement: “It has been a year of strategic change and strong progress for Summit. We have refocused the Company on the development of two innovative clinical-stage programmes targeting Duchenne Muscular Dystrophy and infections caused by the bacteria Clostridium difficile. This change allows Summit to capitalise on the scientific and commercial potential of these programmes as we seek to create two independent high-value franchises to generate value for all shareholders. I am pleased to report that each programme has made significant progress with each recently achieving key technical milestones.” As a recap, in their utrophin modulator programme for the treatment of DMD, the most common and severest form of muscular dystrophy, their lead drug candidate SMT C1100 successfully completed a Phase 1 clinical trial in healthy volunteers. Data from the trial showed that SMT C1100, a potential treatment for all genetic forms of DMD, was safe and well tolerated. In addition, all the volunteers who received repeat doses of SMT C1100 achieved blood plasma concentrations of the drug that are expected to confer therapeutic benefit based on the data generated in non-clinical activity studies. This key data represents validation of the new formulation and is an important step-forward for the programme. Summit is now preparing to take the major step of advancing SMT C1100 into the first ever patient clinical trials of an utrophin modulator drug. Summit expects that the first patient clinical trial will start in H2 2013 with a Phase 2 activity trial to follow in 2014. Summit’s second independent programme is developing the novel antibiotic, SMT 19969, as a treatment for infections caused by the bacteria C. difficile. This infectious disease represents a serious healthcare threat in hospitals, care homes and increasingly in the wider community and SMT 19969 has made great progress, which culminated in April 2013, with the successful completion of a Phase 1 clinical trial in healthy volunteers. The data from the Phase 1 clinical trial conducted in healthy volunteers showed SMT 19969 to be safe and well tolerated at therapeutically relevant doses. Encouragingly, the analysis showed SMT 19969 was highly sparing of gut flora with only the clostridia bacterial family being reduced to levels below detection. The development of SMT 19969 continues to receive considerable support from the Wellcome Trust through a £4.0m Translational Award that will substantially support it through to completion of a Phase 2 proof of concept trial. It is expected that the Phase 2 trial will commence in H1 2014. It was also announced at the AGM that Dr Frank Armstrong will become Non-Executive Chairman of Summit with Dr Barry Price taking up a Non-Executive Director role.
Surgical Innovations Group (LON:SUN 5.5p/£22.25m)
The designer and manufacturer of creative solutions for minimally invasive surgery announced that pilot testing for its prototype port access products for hip arthroscopy on a cadaver has concluded successfully. The pilot testing for hip arthroscopy took place in Oxford and was overseen by one of SI’s hip arthroscopy Clinical Advisory Board (CAB) members. Both the Company and the CAB member were pleased with the promising results produced from the test. The Company will continue to develop, modify and improve the port access system now the core functionalities have been demonstrated. SI intends to run a second cadaver with a wider group of surgeons to test refined pre-production prototypes.
Thalassa Holdings (LON:THAL 145p/£23.72m)
Thalassa announced that, following completion of its first contract with Joint Stock Company Sevmorgeo (SMG), the Russian geological sea survey company, and its Ecuadorian subsidiary Sevmorgeo S.A., the Company’s subsidiary, WGP Energy Services Ltd, has signed a binding letter of intent to execute a contract in respect of the second phase of the seismic data acquisition surveys to be conducted in Ecuador. The contract, which is expected to be executed by the end of June, relates to surveys which are planned to commence on 1 October 2013 and continue until 31 March 2014. The Board anticipates that revenues in respect of the second phase will amount to between US$4.0m and US$5.4m, depending on the acquisition, standby and downtime incurred. Thalassa’s Chairman, Duncan Soukup, commented: “I am delighted that SMG has agreed to extend the initial contract entered into on 18 January 2013 which will increase the aggregate value of the work in Ecuador to more than US$10.0 million.”
The TEG Group (LON:TEG 6p/£11.31m)
The TEG Group, the green technology company has announced that its subsidiary TEG Environmental Ltd. has been awarded a contract by Nottingham City Council for green waste composting at its Simpro Oxton site. The contract will commence in June 2013 and is for a three-year term with a further two years extension option. The volume of green waste is expected to be 12-15,000 tonnes per annum and the overall revenues will be in the region of £1-1.3m over the initial period of the contract.
Trans-Siberian Gold (LON:TSG 23.25p/£25.59m)
Trans-Siberian Gold, a U.K.-based resources company which invests in Russian gold, reported its final results for the year ended 31 December 2012. The Company showed a much widened 2012 pretax loss, due mainly to an impairment provision from its Rodnikova mining license and higher finance costs, and said first quarter 2013 ore extraction at Asacha amounted to 45,352 metric tonnes, the highest quarterly total to date. Revenues increased 276 per cent to $44.89m (2011: $11.93), financial expenses were at $4.11m (2011: $1.47m) thus leading the company to note a loss before tax of $3.42m (2011: loss $809,000). Several operational problems during the year, principally dilution in the Asacha mine, caused lower than expected gold grades in the ore delivered to the plant which resulted in lower gold production and higher per oz gold production costs, with a consequent negative impact on the 2012 results. The Company is cautiously optimistic that ore dilution can be reduced further through planned adjustments in the mining methods, in particular, reducing the diameter of drill holes and the introduction of additional supports. As of 31 December 2012, the Company noted a total of $34.7m (2011: $48.5m) of loans and borrowings, and announced that a further $21.5m of capital expenditure, including contingency of $3.6m, will be incurred in 2013 and subsequent years, at the Asacha mine.
Transense Technologies (LON:TRT 8p/£18.23m)
Transense Technologies, the AIM listed technology company that develops sensor systems for the automotive and industrial markets, last week announced that it has conditionally raised up to approximately £3.2m, with a further £1.05m offered by way of an open offer at a price of 7.5 pence per new ordinary share. The Company intends to use the net proceeds of up to approximately £4.0m from the placing and the offer to continue the progress made to date by further developing the Company’s strategy, in particular, for sales and field support, quality control and for working capital purposes. The Board is also planning to invest in further product and software development and the development of the Company’s sales and marketing functions. The Company separately announced but on the same day that it had signed a major iTrack contract with Kumba Iron Ore (a subsidiary of Anglo American). The contract is for a total sale value of approximately £1m. In addition, after the first year, the supply of services and consumables is expected to yield ongoing sales of approximately £500k pa.
ValiRx (LON:VAL 0.46p/£7.96m)*
ValiRx, a life science company with a focus on cancer diagnostics and therapeutics for personalised medicine, last week announced that following Prime Minister David Cameron’s launch of the Social Stock Exchange (SSE), a unique platform designed to open the public financial markets to social impact investment, the Company has been admitted today to the SSE as a founder member. ValiRx is now part of the first tranche of member companies to be admitted, all of whom are high growth businesses operating in markets such as health, social and affordable housing, clean-tech waste, water, recycling, renewable energy, sustainable transport, education and culture.
Vipera (LON:VIP 3.62p/£4.71m)
Vipera, the specialist provider of mobile financial services, has reported that it is extending its product offering with the addition of an analytics suite to its mobile financial services and solutions based on its Motif platform. Vipera has being researching the optimal way to add additional value to its customers through couponing and cash back functionality and has reached agreement with Red Zebra Analytics to integrate their product “3D Offers” within Motif.
3D Offers is a powerful marketing tool that brings together banks and merchants to offer targeted rewards to consumers based on their individual spending patterns. Such reward programmes are funded by merchants, and whilst operating without personally identifiable information leaving the bank, deliver highly measurable return on investment. These digital offers are particularly effective with today’s mobile phone-savvy consumers.
*A corporate client of Hybridan LLP
A full archive of previous weeks’ Small Cap Wraps can now be viewed on www.hybridan.com.
The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.
4th June 2013
This week: More biomass fuel for AEG, OUT picked by Virgin and VIP treatment for Equens
Last week saw the FTSE 100 fall 60 points to 6,595, and the AIM All share saw a small gain of 4 points to close at 729 points. News has seen the British Chamber of Commerce upgrade its forecasts for the UK economy over the next three years, with output to increase by 0.9 per cent this year (previously 0.6 per cent), and manufacturing growth at its fastest pace for a year with the PMI rising to 51.3 in May from 50.2 in April. Overall global markets saw falls, with Eurozone unemployment reaching a high of 12.2 per cent for April (21.1 per cent in March), and falls in US consumer spending together with concerns over the US scaling back a key stimulus measure. Japanese woes also continue with the Nikkei hitting a six week low amid manufacturing data from China. The week ahead sees UK and Eurozone interest rate decisions and jobs numbers in the US.
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AAU Exploration target, AEG Acquisition and Subscription, ALO Strategic Alliance with Centamin, AMA Q1 Results, BGO New agreement, BLUR $11.5m fundraise, BZT Termination of Mkurumu Joint Venture Project, CGNR mineralogical report positive, CNC Product launch, CNR Initial Metallurgical Testwork, DEMG new guidelines in France, DQE Preliminary Results, ECR Placing, EDEN Results, FITB Final Results, GDP Strategic update, GNG Trading Update, IDOX Trading Update, IVO Autifony phase I, KED Enfield Biomass CHP project update, KEFI Maiden Resource Estimate, New Rigs and Annual Results, KLG Q1 Results, MAN Interim results, MDM Update, MSYS Biotage launch, MTL Dismissal of Writ of Kalikasan, MWA Signs Retreatment Pact with Greenhurst Mining, NMG Final Results, OMI Drilling commenced at Anillo, OUT Partnership agreement with Virgin Media Business, SEE Alliance with Caterpillar Global Mining, SOLG Q1 Activity Report, SORB Update on Manufacturing Facilities, SPRP Lapsing of BRK Offer, SQS Trading update, STT New contract, SUN New US dealer, VGM Completion of First Tranche of Placing, VIP Partnership with Equens, WAS formation of Wasabi New Energy Asia Limited
Active Energy Group (LON:AEG 1.38p/£3.26m)
The Company announced that it has entered into a conditional agreement to acquire the entire issued share capital of Nikofeso Holdings, a Cypriot-registered trading and holding company with its principal subsidiary company, Nikwood, which specialises in exporting high quality wood chip for Biomass power generation and MDF manufacturing in Ukraine, for a total consideration of £3.75m. In connection with the proposed Acquisition, it has conditionally raised a total of £3.07m (gross) pursuant to the Subscription for 165,780,000 Ordinary Shares and £1m nominal of Convertible Loan Notes, in order to provide working capital for the enlarged group and to pay for the costs associated with the Acquisition and Admission. The Nikofeso Group is the largest Ukrainian supplier of wood chip for the production of Turkish MDF and with the support of AEG aims to become the leading Ukraine and Balkan states supplier not only for current MDF applications but also for the provision of feedstock to the European biomass power generation sector, having recently signed a sales contract with a new biomass power plant in southern Italy to supply wood chip as feedstock.
Alecto Minerals (LON:ALO 1.52p/£5.47m)
Alecto Minerals, the AIM listed multi-commodity exploration and development company with projects in Ethiopia and Mauritania, announced that it has entered into a non-binding heads of terms to form a strategic alliance with Centamin plc (LON:CEY 38.7p/£426.24m), the Arabian-Nubian Shield focused mineral exploration, development and mining company. The purpose of the Joint Venture is to pursue opportunities offered by certain mining projects identified by Alecto and Centamin within the Federal Democratic Republic of Ethiopia and it is intended that a formal joint venture agreement will be entered into between Centamin and Alecto in due course. Alecto currently holds two exploration licences in prospective greenstone belts of Ethiopia – Wayu Boda and Aysid Metekel. Centamin will invest £250,000 in Alecto by way of a share subscription at a price per share of 1.6p.
Amara Mining (LON:AMA 19.75p/£33.20m)
Amara Mining (formerly Cluff Gold plc), the dual AIM and TSX-listed West African focused gold mining company, announced its results for the quarter ended 31 March 2013. Q1 2013 was a weak quarter operationally due to lower grades and reduced stacking rates at Kalsaka whilst the crushing circuit was upgraded. Despite the weak operational results the Group delivered a positive EBITDA for Q1 2013, with all corporate costs funded by the profits from Kalsaka. Cash costs were higher than in 2011 at US$1,215/oz including royalties, whilst all-in costs (which include depreciation and corporate taxes) were US$1,583/oz. The overall group result was impacted by a high depreciation charge at Kalsaka as it nears the end of its life. Amara ended the quarter with cash and liquid assets totalling US$23.7m, comprising US$18.2m cash and US$5.5m in gold bullion. A Group wide cost cutting programme is now underway, to ensure that overall expenditure can be fully funded from operating cash flow for the remainder of 2013 and beyond. Savings are expected to be realised during Q2 and Q3 2013. During this period, Amara announced that it had received the Environmental Permit for Sega, a further key milestone in bringing Sega into production in Q3 2013. The Company will now apply for a Mining Licence, which is expected to be granted in approximately six weeks. The Company also published an announcement of a Mineral Resource update for Yaoure, which represents a significant increase on the previously defined resources. The Mineral Resource of 0.3moz Indicated (8.0mt at 1.3g/t) and 1.7moz Inferred (34.6mt at 1.5g/t) is contained within only 40 per cent of the total volume drilled offering scope for significant further expansion of the resource base, and an in-fill drilling campaign commenced in Q1 2013, which has already produced encouraging results. A last milestone for the Company was the continuing apace on the Baomahun Feasibility Study and that it is on track to be released by the end of Q2 2013, in line with previous guidance. Further critical path items were completed during the quarter, including the Geotechnical analysis for plant site, waste dump and Tailings Storage Facility, and work is on-going on the Relocation Action Plan.
Ariana Resources (LON:AAU 1.05p/£4.38m)
Ariana Resources, the gold exploration and development company focused on Turkey, announced the publication of an Exploration Target of its Red Rabbit Gold Project. The Company has estimated an exploration target containing up to 92,000 ounces of gold and 1.1m ounces of silver at Arzu Central, indicating future potential to add to the resource base within the Kiziltepe Sector of its Red Rabbit Gold Project in Western Turkey. The Red Rabbit Project currently has a current total resource of 448,000 ounces of gold equivalent and exploration target could further increase the current mine life of eight years and enhance mine economics at Kiziltepe. Exploration drilling is planned to be executed during Kiziltepe mine construction in 2014, while the exploration target at Arzu Central will focus on the delivery of additional resources mineable by underground methods. Two drill holes completed last year demonstrated unequivocally that the Arzu Central vein system continues under cover beyond the planned pit limit at Arzu North and that there is a substantial improvement of grade in this direction.
Bango (LON:BGO 204p/£92.83m)
The mobile web payments and analytics company today announced that it has signed a global payments services agreement with Mozilla Corporation, with operators being able to select Bango to provide billing, collection and settlement for content purchased through Firefox Marketplace, an app store built on HTML5 Web technology and due to roll out in 2013. The Company is partnering with Telefónica to power payments across their Firefox OS launch territories in Europe and Latin America. In March, the announced final results for the nine months ended 31 December 2012, where it saw a gross profit for the nine months of £1.58m was made (12 months to 31 March 2012: £2.29m). In February 2013, Bango raised £6.5m from institutional investors to strengthen its balance sheet and take advantage of developing opportunities in emerging markets and further business development with major mobile network operators.
Bezant Resources (LON:BZT 20.62p/£17.11m)
Bezant Resources announced that it has received notification from AngloGold Ashanti Limited that further to a recent peer review of their various projects they have terminated the Mafulira Project, in Tanzania, with the Mafulira Village Mining Company. Detailed analysis concluded that the Mafulira Project, which includes the Mkurumu Project, was not economically viable. As previously reported, the board of Bezant fully impaired all of the exploration costs incurred in respect of the Company’s Tanzanian projects in the Company’s 2010 financial year. In March 2012, the Company announced that it had terminated the pre-existing joint venture arrangements with Ashanti Exploration (Tanzania) Limited (AETL) in respect of the Mkurumu Project and negotiated a new agreement whereby Anglo Tanzania Gold Limited (ATGL), the Company’s subsidiary, holds a reduced free carried interest of 5 per cent. along with a Net Smelter Return Royalty of 2 per cent. of any potential future Net Smelter Return due to AETL. Accordingly, such new agreement has now been terminated further to the abovementioned notification from AngloGold Ashanti.
blur (Group) (LON:BLUR 155.5p/£38.18m)
blur Group, the company that’s reinventing commerce at blurgroup.com, last week announced that it has conditionally raised $11.5m through a placing of new ordinary shares. These funds will be used to accelerate growth through investment in new customer acquisition worldwide and in technology development for the Global Services Exchange and its s-commerce platform, which is now used by 28,000 businesses in 141 countries worldwide. The Placing Price represents a discount of 2 per cent. to the Closing Price of 153 pence per Ordinary Share as at 30 May 2013. Listing on LSE AIM raised gross funds of $6.4m in October 2012 and allowed the Group to invest in areas to reinforce its first mover advantage and deliver growth in its core metrics; number of briefs, number of experts and brief values.
Concurrent Technologies (LON:CNC 52p/£37.15m)
Concurrent Technologies, the specialist designer and manufacturer of high-end embedded computer products for critical applications, has released its first processor board based on the quad-core 4th generation Intel(R) Core(TM) processor family, launched by Intel in June 2013. The TR B12/msd is a 3U VPX board with up to 16 Gbytes of DRAM and a rich assortment of I/O interfaces. VPX is an ANSI (American National Standards Institute) standard designed specifically with defense applications in mind. 3U is a European standad PCB card which is 100m high and can be plugged in a 133mm 3U subrack. 3U VPX is particularly well suited to high-end compute intensive applications in military, aerospace and transportation systems for data acquisition, control systems and video signal processing.
Condor Gold (LON:CNR 107p/£40.53m)
Condor, a gold exploration company focused on delineating a large commercial reserve on its 100 per cent owned La India Project in Nicaragua, which hosts a CIM compliant Mineral Resource of 2,375,000 oz gold at 4.6g/t, announced that metallurgical testwork commenced in early April 2013 on approximately 500kg of sample material from La India Project. The testwork includes samples from all areas that were included in the recently announced Preliminary Economic Assessment and/or are expected to feature in the planned Pre-Feasibility Study. The initial results demonstrated that the ore at La India Open Pit is amenable to processing by either whole-ore cyanidation or a combination of gravity concentration followed by cyanidation of the gravity tailings with gold recoveries of 93-96 per cent. In addition, metallurgical testwork to Preliminary Economic Assessment level is underway on test composites from the America Vein Set, the Mestiza Vein Set, and the Central Breccia, even though Central Breccia was not included in the recent Preliminary Economic Assessment because it does not yet host a mineral resource estimation. However, Condor currently has one drilling rig completing a 2,000m drill programme on the Central Breccia area following-up on a previous drilling programme of 880m which defined wide zones of moderate to high-grade gold mineralisation at surface and suggest that it will feature in the planned Pre-Feasibility Study. The material used in the current study is more representative of the mineralisation included in the recent Preliminary Economic Assessment and represents a significant step towards bringing the La India Project to Bankable Feasibility Study in the shortest possible time frame. The metallurgical testwork is expected to be completed by Q4 2013.
Conroy Gold and Natural Resources (LON:CGNR 1.9p/£5.53m)*
Conroy Gold is planning to develop its first operational gold mine at Clontibret in Co. Monaghan. The mineralogy of the flotation samples was investigated using QEMSCAN – an integrated automated mineralogy and petrography solution in combination with X-ray diffraction and geochemical analyses to identify and quantify mineralogical characteristics. The gold grade in the Bulk Concentrate was very high at 32.8 g/t with 3 g/t silver. The Rougher Tailing had a much lower gold grade of 0.25 g/t and 1 g/t of silver showing that most of the gold is being captured in the Bulk Concentrate. The test results indicated that most of the gold in the Bulk Concentrate is associated with sulphides. This association suggests that these samples will be amenable to the Biox® process proposed in the Scoping Study, as the sulphides would be broken down during the process. Exposure and association of the particulate gold in the Bulk Concentrate was very high (circa 90 per cent) indicating that most of this gold should be recovered during leaching.
Deltex Medical Group (LON: DEMG 14.62p/£24.04m)
The global leader in oesophageal Doppler monitoring (ODM) last week announced that the professional body for anaesthetists in France – Société Française d’Anesthésie et de Réanimation (SFAR) has published new guidelines recommending fluid management best practice for its members. The SFAR guidelines make it clear that ODM-guided fluid management should be used in all high risk surgery in France. This is estimated to cover circa 750,000 patients a year, of which only about 1 per cent are currently treated with ODM despite it being a market leading technology for IOFM in France. In France clinical guidelines such as these are the key driver behind wide scale changes in clinical practice and, therefore, accelerated adoption of medical technologies. All of these recommendations are graded in the highest category ‘1+’, meaning that SFAR members are expected to comply because the evidence level is high and unexpected to change.
DQ Entertainment (LON:DQE 13.38p/£7.53m)
DQ Entertainment a leading global animation, gaming, live action, entertainment production and distribution company, announced its results for the year ended 31 March 2013. Revenue was INR. 2,294m (2012: INR.2272m), Profit after tax: INR381 m (2012: INR 358m) and cash and cash equivalents: INR 624m (2012: INR 334m). The Order book currently at: INR 6,588 m (2012:INR 8,064m). EBIDTA margins to revenue increased to 49 per cent (2012: 47 per cent) due to cost reduction and production efficiencies across the organisation. During the year, the Company paid down term loan to the extent of INR 146m (Net) and has invested INR 1,136m for development of its intellectual properties and co-production investment, the majority of which is for the pre-production of ‘The Jungle Book’ feature film. The Chairman reported, “The global economic scenario, especially in Europe and North America, continues to be very challenging. The onus is on the company custodians and management to keep on delivering results even in times such as these. Creative businesses mainly need to focus on core assets and deriving as much from them as possible. Value creation from Intellectual Property development has emerged as an asset around which business models and financing are increasingly being focused.
ECR Minerals (LON:ECR 0.11p/£1.90m)
ECR Minerals, a mining company active in Asia and South America, announced the placing of 400,000,000 new ordinary shares of 0.1p each at a placing price of 0.1p to raise £400,000 before expenses. Additionally, the Company issued 157,473,000 new ordinary shares at a price of 0.1p to creditors of ECR to settle certain existing and future obligations of the Company totalling £157,473. Finally, the Company is issuing a total of 46,663,200 new ordinary shares at a price of 0.1p each to the directors of ECR in lieu of unpaid fees totalling £46,663.20 accrued since late 2012. The Placing Shares, Conversion Shares and Director Shares together total 604,136,200 new ordinary shares, representing 35.07 per cent of the Company’s enlarged ordinary share capital. The net proceeds of the Placing will provide funding for ECR until 31 July 2013. Further funding is expected to be available to the Company through the sale of shares in THEMAC Resources Group Ltd (TSX-V:MAC C$0.13p/C$9.63m). The Company will also seek to obtain cash or tradable securities as part of any transaction that may be agreed with respect to the Sierra de las Minas project in Argentina.
Eden Research (LON:EDEN 12p/£14.79m)
The AIM listed agrochemical and encapsulation development company announced results for the year ended 31 December 2012. Given the focus on licensing and development agreements, the Company saw revenues of £0.5m (2011: £0.1m) generate from charges and consultancy fees to licensees and losses of £2.3m (2011: £3.3m). On the balance sheet, the Company converted all of its £2.3m of debt into equity, and had cash of £340,000 (2011: 388,547), though this has been boosted since year end by a placing in February which raised £1.1m. The Company has seen a number of milestones having been achieved recently, having listed on AIM in May 2012, and having patents granted by ARIPO, as well as Australian and European Patent Offices, and in May this year was given EU approval for the three active substances used in the Company’s lead product, 3AEY (a terpene based fungicide).
Fitbug Holdings (LON:FITB 1.05p/£1.77m)*
Fitbug Holdings, the AIM traded provider of online personal health and well-being services, announced its results for the year ended 31 December 2012 and gave notice of its AGM. The period saw a 4 per cent increase in turnover to £1,334,000 (2011: £1,283,000), and a loss of £1,444,000 (2011: loss £783,000) – reflecting the strategic development of the Company’s product range and the US business was reported in line with market expectations. The Company saw the continued support of the Kirsh Group with two investments in 2012 totalling £1.5m and one post period end of £0.75m. The period saw the successful launch of four highly innovative, fully integrated connected health products (one of which was during the period and three of which were post period) and the increased presence in the buoyant Connected Health market – post period end, the Company secured new partnership agreements with leading wellness businesses and positive responses from exhibition at the Consumer Electronics Show (CES).
GEONG International Limited (LON:GNG 3.38p/£1.28m)
GEONG International Limited, a leading Internet software solutions provider and operator for large enterprises in China said that trading performance for the year ended 31 March 2013 was broadly in line with that of the previous year with turnover at a similar level albeit at a reduced gross margin. As in the year ended 31 March 2012, the Company expects to report a small profit before tax for the last financial year. Trade receivables have increased over the period as a result of both exchange rate movements as well as an increase in accrued income due to invoicing delays whilst changes to the national tax system were being implemented. The cash balance at 31 March 2013 was £4.5m and the Company has completed repayment of the £1.5m of convertible unsecured loan stock referred to in the announcement of 28 March 2013. GEONG has continued to execute its strategy of working closely with its existing customers and trying to drive more business from IaaS to SaaS in order to achieve a higher average margin and to improve cash flow. Market conditions remain challenging but the Board remains confident of GEONG’s business model and its potential.
Goldplat (LON:GDP 9.62p/£16.21m)
Goldplat, the gold producer in Africa, has announced an update on its strategic review undertaken by the new CEO, Russell Lamming. In order to eliminate losses caused by continued operational constraints and the current uncertain gold price environment, the Company has put the Kilimapesa Gold Mine (KGM) in Kenya on a care and maintenance programme until the project economics can justify the reopening of the mine. KGM has retrenched a further fifty employees and is now maintaining the mining operation on a skeleton staff. The processing plant will continue to process stockpiles of ore at the plant to cover the costs of the care and maintenance programme. Goldplat has also completed a review of Gold Recovery Ghana (GRG), its Ghanaian operation in Tema. Due to the continued margin pressures the Company has stopped procurement of material for GRG’s Carbon in Leach (CIL) plant and is in the process of closing this section down and will remain so until material that meets the Company’s margin criteria is sourced on a sustainable basis. Notwithstanding the closure of the Tema CIL plant, GRG continues to procure material to supply the Nzema mine in Ghana as per its tolling agreement that processes tailings off site with Endeavour Resources. As a result of these actions and the continued low gold price, the management is now advising that EBITDA for FY2013 is likely to be materially lower than market expectations.
Idox (LON:IDOX 35.75p/£124.42m)
Leading independent supplier of software and services to the UK public sector and global engineering information markets announced a trading update for the six months to 30 April 2013. The Company is encouraged by the underlying progress made in all of its businesses during the first half and continues to be excited by the multiple growth opportunities available to it. However, in light of a slower than expected first half of the year, the Board now thinks it is prudent to anticipate full year EBITDA is likely to be no less than £18m, which reflects uncertainty of timing as to when those opportunities will crystallise. The UK Public Sector business has continued to increase its market share in its core markets, with the sale of 50 new systems in the financial year to date. IDOX continues to promote and has been successful in growing its version of managed and hosted services while partnering with local government to deliver cost savings and improved services. IDOX has completed contracts with the smallest unitary council, the Isles of Scilly and larger councils, such as, Hart District Council, Canterbury City Council, Sandwell MBC and North East Lincolnshire. These contracts are worth a total of £1.6m over the next five years. The division is now starting to bid for contracts outside the UK in all its areas of expertise and has recently been awarded a framework agreement by the Norwegian Ministry of Local Government for an election contract. Within the Engineering Information Management (EIM) division, the enterprise sales pipeline for the business has grown significantly since the start of the financial year; however closed order values are lower than in the first half last year, which included two large enterprise deals. The division has seen growing interest in its off premise McLaren OnAir offering and SaaS based solutions. Recurring revenues in the division have increased by 18 per cent to 58 per cent. In the first half McLaren launched its virtual Business Process Outsourcing offering for document control. The division has continued to expand its global sales coverage and is on track to deliver multilingual and global 365-day support for its enterprise solutions. Whilst the Information Solutions business has seen slower than expected growth, due to reductions in Dutch grant rates and UK Government spending, it has maintained content subscription revenues, forged new partnerships and expanded its geographical coverage across the Netherlands during the period. The acquisitions made in recent months have been fully integrated into the business and are on plan to deliver against their acquisition cases. The Group expects to announce interim results for the 6 months to 30 April 2013 on 25 June 2013.
Imperial Innovations Group (LON:IVO 291p/£289.98m)
Imperial Innovations this morning announced that its portfolio company, Autifony Therapeutics has initiated a Phase I clinical study of AUT00063, its lead product for the treatment of hearing disorders. The study, being conducted in the UK, will investigate the safety and optimal dosing regimens of AUT00063 in around 60 young and elderly volunteers, and is expected to complete in Q1 2014. Autifony has recently received £5m in investment funding from Pfizer Venture Investments, the venture capital arm of Pfizer Inc. The International Biotechnology Trust PLC (IBT) has also invested, bringing the total funds raised in this recent funding round to £15.75m. Existing investors include SV Life Sciences, UCL Business plc (UCLB) and Imperial Innovations, which has invested a total of £5m in Autifony.
Kalimantan Gold (LON:KLG 3.88p/£3.81m)
Kalimantan Gold Corporation Ltd, a junior exploration company, announced a comprehensive profit of $25,151 for the three months ended March 31, compared with a loss of $134,741 a year earlier, adding that a drilling program at the KSK CoW is well underway. The profit derived from the $219,815 management fees earned in the three month period that relate to being the operator of the KSK Agreement and are directly correlated with the magnitude of the gross exploration expenditures funded by joint venture partners and continuance as operator. The Company began the current fiscal quarter with $3,058,382 in cash, operating activities used $1.8m in cash, $240,823 were used to purchase equipment, $99,805 as recovery of equipment purchases, and recorded $1,994 of unrealised foreign exchange losses on cash balances, to end the quarter with $1.2m in cash, of which $382,182 is held exclusively for use pursuant to the KSK Agreement. The Company also added that a significant drilling and exploration program at the KSK CoW of up to $16,200,000 for 2013 is well underway and additional 15 major prospects on the KSK CoW will be explored in 2013 to generate drill targets utilising up to five helicopter supported drill rigs. The 2013 activity will focus on five main areas: surface mapping; remote sensing; drilling; assaying and data compilation and modelling.
Kedco (LON:KED 0.75p/£8.4m)
Kedco, the developer and operator focusing on the production of clean energy in the UK and Ireland, has announced the appointment of the Foresight Group as the preferred funding partner in relation to its 12MW Enfield Biomass CHP project located in North London. Kedco has signed a non-binding heads of terms with Foresight for the provision of debt and equity facilities which will part finance the construction and operation of the project. The heads of terms are subject to completion of due diligence, legal documentation and final investment committee approval. As part of the financing structure, a co-investor will be required to invest alongside Foresight funds. Under the heads of terms, Kedco will retain a substantial equity participation in the project in line with the Company’s stated strategy and will not be required to invest any further funds on financial close.
KEFI Minerals (LON:KEFI 3.08p/£14.49m)
KEFI Minerals, an AIM-quoted gold and copper exploration company, through its 40 per cent owned Gold & Minerals JV Company, announced its maiden JORC compliant resource, at the Jibal Qutman prospect in Saudi Arabia. An Inferred Resource of 10.3mt at 0.94g/t Au for 313,000 oz Au has been calculated at a 0.2g/t Au cut-off and 20g/t Au top-cut, which can potentially be economically mined in a shallow open cut to a depth of maximum 50-70m. The bulk of the additional resource is from the West Zone, with no additional drilling in the Main Zone and only 14 RC holes drilled into the South Zone since the preliminary non-JORC estimate of 90,000oz Au was announced in January 2013. The second phase RC drilling programme is on-going with mineralisation remaining open along strike at the Main, South and West Zones. The Company hopes to pour first gold from its Jibal Qutman Prospect in early 2015, after the imminent delivery of two new drilling rigs that will dramatically accelerate its exploration plans. The first new rig is expected on site towards the end of June, with the second a couple of months later, taking the total to three, however the speed of development, remains at the mercy of regulatory and licensing approvals.
KEFI Minerals also announced its audited results for the year ended 31 December 2012. The Company completed two placements during the period, in February and July 2012, raising a total of £2.8m. These funds have been sufficient to complete Stages 1 and 2 drilling at Selib North, IP geophysics at Selib North, and Stage 1 drilling at Jibal Qutman in 2012. In addition, the Company has sufficient funds to purchase the multi-purpose drill rig, complete the scheduled 15,000m Phase 2 RC programme, and to commence a PFS in H2 at Jibal Qutman in 2013. The Gold and Minerals JV was granted by the Kingdom of Saudi Arabia’s Deputy Ministry for Mineral Resources two Exploration Licences (ELs) in January 2012 and a further EL in July 2012. The JV now has four ELs and seventeen EL applications at various stages of permitting. Exploration work at the Selib North project defined new gold-bearing dykes at the Camel Hill prospect with best trench results of 17m at 3.4g/t Au, and diamond drilling commenced in July 2012.
Manroy (LON:MAN 54p/£10.28m)
Manroy, the AIM quoted UK defence contractor, announced interim results for the six months ending 31 March 2013. The period saw revenues push up by 21 per cent to £4.1m (2012: £3.4m) and losses of £861,000 (2012: £1.1m), partly as a result of the Company amortising intangible assets by £529,000. On the order book, the Company saw orders for the UK operations increase to £15.8m (from £6.9m in 2012) and $13.2m in the US. The Company, which is traditionally second half weighted, also acquired the business and assets of Base Enamellers Ltd and RJL Engineering which brought a high-end manufacturing capability, together with cost savings and additional revenue from new customers to the Group. Two new products were also added to the Company’s portfolio – the General Purpose Machine Gun and the Scorpio turret, with the gun having confirmed orders for 300 units and the turret expected to have customer trials later this year and sales in 2015. With the order book expected to be completed during the remainder of this financial year and 2013/2014, and cost savings having been achieved, the Company believes it is in a good position to achieve its long term strategic objectives.
MDM Engineering Group (LON:MDM 140p/£52.16m)
The minerals process and project management company focused on the mining industry announced that the proposed merger between MDM and Sedgman will not proceed following the termination of the Merger Implementation Agreement. The Company expects to report revenue of US$138.3m, up by 155 per cent from the previous years’ US$89.1m, and net profit before tax of approximately US$20.3m, up by 260 per cent from the previous years US$7.8m, for the financial year ended 31 March 2013. Cash at the end of April 2013 stood at approximately US$35.5m. The Company believes its order book and pipeline provides MDM a strong position from which to organically grow the business.
Metals Exploration (LON:MTL 7.12p/£69.03m)
Metals Exploration, the natural resources exploration and development company with assets in the Pacific Rim region, announced that the Court of Appeals on May 24 dismissed the petition for the issuance of the Writ of Kalikasan and the Writ of Continuing Mandamus relating to the Runruno gold project in the Philippines. The Company announced that FCF Minerals Corporation, a wholly owned subsidiary of Metals Exploration and owner of the Runruno gold project in the Philippines, The Department of Environment and Natural Resources, The Mines and Geosciences Bureau and the National Commission on Indigenous Peoples have jointly been served with an application for a Writ of Kalikasan, seeking any number of remedies from a restraining order through ordering the payment of additional compensation to termination of the Runruno FTAA on 9 November 2012. This decision vindicates the Company and its operations at Runruno and the judge ruled on the suit brought against it by the petitioners as follows: a) it was unsubstantiated and the petitioners showed a ‘clear lack of interest in prosecuting; b) it wasn’t motivated by a concern for the protection of the environment, and c) it was a frivolous action as FCF is not and had not been ‘committing acts inimical to the observance of environmental laws’.
Microsaic Systems (LON:MSYS 47.5p/£24.93m)
Microsaic Systems today announced the official launch by Biotage AB (Uppsala, Sweden) of the Isolera™ Dalton, a fully integrated system for Flash chromatography and mass identification incorporating Microsaic’s novel miniature mass spectrometer – the Microsaic MiD®. The Isolera™ Dalton seamlessly integrates the Microsaic MiD® with Biotage’s flagship Flash purification system Isolera™ to enable a chemist to identify compounds by mass in real-time during Flash separation. By integrating separation with mass identification the system removes complex off-line analytical steps and can significantly increase throughput for the user.
Mwana (LON:MWA 3.5p/£39.24m)
Mwana announced that its wholly owned subsidiary, Southern Era Diamonds Inc. has concluded an agreement with Greenhurst Mining and Exploration Ltd to re-treat fine residue tailings at Mwana’s Klipspringer diamond mine on a profit share basis. The proceeds accruing to Southern Era will assist in covering the care and maintenance costs at Klipspringer. In terms of the agreement Greenhurst will supply and operate a diamond processing facility to extract diamonds that are 0.5mm-1.5mm in size. Southern Era will not incur any operating costs nor be required to invest in the project. Greenhurst engaged the services of Gemcore Sampling (Pty) Ltd to collect and process bulk samples from the slimes dams. Sampling of the Marsfontein and Klipspringer fine residue tailings was completed in late 2012 and the results demonstrated that there are sufficient quantities of diamonds present to make re-treatment economically viable. From the sampling results, the average revenue from retreatment of the Marsfontein fine residue tailings dam is expected to be $21.81 per ton, however, due to the nature of slimes re-treatment the actual revenue generated may vary. Gemcore will remain as the operator for this project and will be responsible for both the mining and processing of the slimes material. The project is funded by Greenhurst using a mix of asset finance and shareholder contributions. Construction of the processing plant, which will have a nominal capacity of 50 tonnes per hour, with a projected monthly throughput of 22,560 tonnes, and site preparation, is in progress.
Noricum Gold (LON:NMG 0.72p/£5.47m)
Noricum Gold Limited, the Austrian focussed gold exploration and development company, announced its final results for the year ended 31 December 2012. The company’s Rotgülden Gold & Precious Metal Project in south-central Austria continued to demonstrate strong potential, underpinning the management’s belief that it is developing an exciting new gold province. Multiple targets along 8km of strike running through the tenure were identified at Rotgülden by a successful aerial electromagnetic campaign and follow up sampling returned high grade gold and multi-element results across four main areas, focusing the Company on testing these areas at depth. With this in mind, Noricum’s next step is to delineate a JORC compliant resource at the previously producing gold mine and also to strengthen their understanding of the expansive regional mineralisation in order to build value for shareholders. Noricum also reported encouraging results from the Schonberg Gold & Precious Metals Project, located approximately 100km east of Rotgülden, which led to a decision to increase land position surrounding Schonberg. The Company expects start of work at Schonberg during the summer months, commencing with a systematic soil sampling and geochemistry programme. At the end of June 2012, the Company announced the successful raising of £2m by way of a placing for the future development of Rotgülden and Schonberg. The Group’s cash position at the end of the period was £1.6m and currently stands at £1.3m.
Orosur Mining (LON:OMI 9.25p/£7.23m)
Orosur Mining Inc., a South America-focused gold miner, announced that drilling has commenced at the Company’s Anillo gold-silver prospect in northern Chile. In line with Orosur’s plans, the Company on May 23rd initiated the drilling of an initial 3,000 meters of Reverse Circulation Drilling at Anillo, distributed in approximately 10 holes to test the highest priority targets for El Peñon type, high grade epithermal gold mineralisation. This current drilling program is expected to be finalised by late June, with analytical data expected to become available during July-August 2013.
Outsourcery (LON:OUT 130p/£40.08m)
Pure-play provider of Cloud-based IT and communications services (ICT), announced that it has signed a contract with Virgin Media Business to resell Outsourcery’s suite of services, for a minimum of three years. Outsourcery was selected by Virgin Media Business to provide cloud services in December 2012 following a UK-wide and rigorous procurement process. Outsourcery was selected due to its world-class, enterprise-grade platform and capabilities as well as its ability to deploy CESG IL2 accredited solutions for public sector end-customers. The companies have been working collectively since Outsourcery was selected to integrate business processes and design effective go-to-market cloud strategies to enable scale.
Seeing Machines Limited (LON:SEE 3.12p/£15.02m)
Seeing Machines has signed a strategic agreement with Caterpillar Global Mining LLC., the world’s leading manufacturer of mining equipment, for in-cab Fatigue Monitoring Systems for use in mining machines. The exclusive agreement covers the use of eye-tracking technology in the cabs of mining vehicles to enable the monitoring of operators for signs of fatigue and distraction. The agreement covers a multiple-phase approach that commences with a supply and support agreement of the Fatigue Monitoring Systems through the global Cat(R) Dealer network and progresses to further phases that include joint product development and technology licensing agreements. Under the agreement, Seeing Machines and Caterpillar envision greater integration of the Fatigue Monitoring Systems with Cat MineStar(TM) System so that data on fatigue and distraction can be integrated into the overall management functions of the mine and business. “The agreement with Caterpillar is a major business breakthrough for Seeing Machines in establishing our technology in the mining industry,” stated Terry Winters, Chairman of Seeing Machines. “The application of our technology in this market and our business alliance with Caterpillar are critical steps in the evolution of Seeing Machines.
SolGold (LON:SOLG 4.75p/£25.84m)
The Board of SolGold announced the commencement of a Quarterly Activities Reporting programme with issue one. In the previous quarter the Company has continued to make strong progress on the development of its Cascabel Project in Ecuador and reported on a successful completion of a share placement to fund this development. The Board was also delighted to welcome Mr Alan Martin as the Company’s new Chief Executive Officer. During the period SolGold reached an agreement with Cornerstone Capital Resources Inc. in respect of re-negotiated terms to acquire up to 85 per cent interest in the promising Cascabel copper gold porphyry project in Northern Ecuador. SolGold will also acquire up to 15.9 per cent of Cornerstone by further subscribing $0.75M of share issues in Cornerstone. The Company also announced the follow-up channel sampling at its Alpala Prospect within the Cascabel Project in Ecuador which returned highly encouraging gold and copper assays from all follow-up trenching. These results significantly expand the area of mapped and mineralised porphyry copper-gold stock work veining in the Alpala region. During the period, the Company successfully entered agreements for a placing of 119.8m shares at £0.015 to raise £1.8m to fund exploration and commence a Stage 1 drilling program at the Cascabel Project.
Sorbic International (LON:SORB 8.75p/£5.00m)
Sorbic International, the third largest sorbates producer in China, last week provided an update on its manufacturing facilities. As detailed in the announcement issued on 23 April 2013, the Board has been working towards finalising the details of the compensation package in relation to the Company’s manufacturing facility in Ulanqab City, Inner Mongolia. The Company has subsequently been approached by local authorities in Linyi City with regards to a new, possibly more beneficial opportunity relating to the relocation of the Company’s existing original facility in Linyi City, Shandong Province. In light of this approach, the Board has decided to await further detailed information on the new potential Linyi City compensation package that would be offered to the Company prior to concluding on the negotiations relating to the Inner Mongolia compensation package. The Board is keen to act in the best interests of its shareholders and, it will need to review this new opportunity fully prior to making a further update to the market. The Company also announces that it will be announcing its Interim Results for the six months ended 31 March 2013 on Monday 17 June 2013.
Sprue Aegis (LON:SPRP.PL 103.5p/£40.04m)
The Independent Directors of Sprue noted the announcement released by BRK stating that having received valid acceptances for its Offer representing approximately 1.26 per cent. of the existing issued share capital of Sprue, BRK has lapsed its Offer. The Independent Directors welcome this announcement and confirm that they remain committed to building value for all Sprue Shareholders.
SQS (LON:SQS 335.5p/£93.58m)
Specialist in software quality services provided a trading update ahead of its AGM. The Company has seen good demand during the first quarter of 2013 across Germany, Switzerland, Austria, the Netherlands and Ireland (where it is now the dominant player) for core applications such as SAP. A number of contract extensions were also signed, which led to a good performance in our Managed Services during the first quarter of the year representing approximately 40 per cent of SQS’ revenues in the first quarter of the year, up from 34 per cent for the year to 31 December 2012. The Company is aiming to significantly increase headcount in offshore test centres in the coming months to service in the Managed Services business, as well as the consultancy headcount in the US and central Europe. The Company is confident they are on track to meet market forecasts for the current year.
Straight (LON:STT 36.25p/£4.31m)
Straight, the environmental and products services group, has secured a position on a new four year framework agreement with YPO, to supply a range of plastic wheeled bins from 140 to 1,100 litre capacity. The new contract is estimated to be worth between £30m and £60m across a total of six suppliers on the framework. It replaces a previous framework agreement for wheeled bins which has now expired. Straight now holds positions on a total of four YPO framework agreements, which include the supply of metal wheeled bins, recycling containers and compostable liners as well as plastic wheeled bins. YPO customers include public sector organisations such as schools, colleges and universities, emergency services, and major local government departments. Framework agreements offer a fully compliant route to market, allowing customers to buy goods without going through the full procurement process required through the Official Journal of the European Union. In a separate announcement, the Company has confirmed that it has refinanced its existing facilities in a three year financing agreement, which will expand working capital facilities to fund future growth.
Surgical Innovations Group (LON:SUN 5.5p/£22.25m)
Surgical Innovations Group, the designer and manufacturer of creative solutions for minimally invasive surgery, announced the appointment of a US distributor, the first new US dealer since the appointment of Rick Barnett as President of US Sales and Operations. The distributor will promote SI’s Logi(TM) Range and YelloPort+plus(TM) products across Indiana, Kentucky and Ohio under the terms of a three year distribution agreement. The established distributor is based in Indianapolis and through its dedicated sales team will cover in excess of 430 hospitals across the three designated US States. Graham Bowland, Chief Executive Officer for Surgical Innovations, said: “This contract is evidence of SI’s strategy to penetrate the US market and optimise the opportunity located there. Rick Barnett was appointed at the beginning of the month and in this short period of time has already secured this new distributor, which will help develop SI’s presence in the US. Other US dealer agreements are in the pipeline and the market will be updated accordingly.”
Vatukoula Gold Mines (LON:VGM 9.75p/£13.78m)
Vatukoula Gold Mines the AIM listed gold producer focused on Fiji, announced the completion of the first tranche of the placing announced on 20 May 2013. The Company had entered into a subscription agreement with SCD Energy Inc., which is an indirectly wholly owned subsidiary of DRK Energy Co., Limited whereby SCD subscribed for 30,000,000 new ordinary shares in the Company at a price of £0.15 per share to raise £4.5m. The Subscription Shares will represent approximately 19.2 per cent of the enlarged issued share capital of the Company. The Agreement is to be completed via the issue of two equal tranches of 15,000,000 (£2.25m). The first tranche is now completed and the second tranche will be completed by 17 June 2013.
Vipera (LON:VIP 3.25p/£4.23m)
Vipera, the specialist provider of mobile financial services, has reported that Equens, the largest pan-European payment processor, has started to offer Motif, the Vipera product, to its customers. This follows an in depth evaluation conducted together with one of its German bank customers, which has now progressed to conducting a trial implementation of Motif. The management believes that this new partnership reinforces Vipera’s position as a growing provider of mobile financial services as financial institutions demand resilient and robust infrastructure and Vipera’s credentials in this arena are now starting to give it increased traction in many business segments.
Wasabi Energy (LON:WAS 0.52p/£16.01m)
Wasabi Energy has formed Wasabi New Energy Asia Limited and has also entered into a Heads of Agreement with Augut in relation to the formation of a Joint Venture (JV) Company to implement the Kalina Cycle® technology in the coal industry globally, excluding existing licensed regions. Augut have also subscribed for A$1,500,000 of new Wasabi shares at 1c per share with an accompanying option at 1c per share exercisable at any time until 30 June 2014. The funds raised from this subscription will be used as additional working capital for the Group.
*A corporate client of Hybridan LLP
The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.