Small Cap Feast

Small Cap Feast – 06 July 2020

Dish of the Day:

Admission only of Pensana Rare Earths (PRE.L) to the Main Market (standard), which is bringing into production one of the world’s largest and higher grade rare earth projects. Located adjacent to the $1.8 billion refurbished Benguela rail line (Angola), it offers unprecedented transport connections and a source of high-grade rare earth metals from mine to customer.  Also on ASX.  A$58.4m  mkt cap

 

Off the Menu:

Share PLC has left AIM following a takeover.

 

What’s Cooking in the IPO Kitchen?

AEX Gold (TSXV:AEV) is intending to admit its shares to AIM alongside a £45m placing. The Company, led by CEO Eldur Ólafsson, has established the largest land package of gold assets in Greenland with a current portfolio of licences covering 3,356 square kilometres, in the two known gold belts in Southern Greenland, the Nanortalik and Tartoq gold belts. Nalunaq is a high-grade gold asset with an updated Inferred Mineral Resource covering 422,770 tonnes at 18.5 grams per tonne of gold, or 250,970 ounces of gold, which covers the area in and around the historical mine.  Due July.  Current mkt cap C$66.7m.

 

Breakfast Buffet

Beowulf Mining.4.4 p £26.5m (BEM.L)

Results from the grab sampling programme completed across the Madjan Peak gold target at Vardar Mineral’s Mitrovica licence in Northern Kosovo. 

Highlights:

  • 42 samples have assayed in excess of 0.1 gramme per tonne (“g/t”) gold out of a total of 96 samples collected from available outcrop and subcrop.
  • Anomalous results correlate well with gold in soils and alteration intensity and confirm the significant scale of the Madan Peak gold anomaly, an area 1400 x 700 metres, which remains open to the east.
  • Sample results over 1 g/t gold include: 7.2 g/t; 4.6 g/t; 2.8 g/t; 2.0 g/t; 1.5 g/t; 1.3 g/t; 1.3 g/t; and 1.1 g/t.
  • In addition to the primary gold target, a new multi-element anomaly has been delineated to the south of the main peak.

 

Thor Mining 0.365p £4.5m (THR.L)

The Northern Territory Government has awarded Major Project status to the Thor Mining Molyhil tungsten/molybdenum project, held by Thor’s 100% owned subsidiary Molyhil Mining Pty Ltd.

The Chief Minister of the Northern Territory, The Honourable Michael Gunner MLA and, and the Chairman of Thor Mining, Mick Billing, announced the Project Facilitation Agreement (PFA) between the Government and the Company on Saturday 4th July.

The Company is currently pursuing project finance for the development ready Molyhil project, for which the Definitive Feasibility Study released in 2018, estimated at US$43million.  The project has an estimated development time, from commencement, of 12 months.

 

Cohort 551p £225.7m (CHRT.L)

Wholly owned subsidiary Chess Dynamics Ltd has been awarded a two-year contract to supply surveillance equipment to a Northern European customer. The contract has a value of approximately £20 million, with deliveries expected to commence in the second half of the Group’s 2021 financial year.

Andy Thomis, Cohort Chief Executive, said:

“This contract further demonstrates Chess’s technological leadership and ability to serve a diverse range of global customers. Together with other recent contract wins across the Group, this announcement further demonstrates the visibility of our medium-term revenues.”

 

Sabien Technology SUSPENDED (SNT.L)

“The Covid-19 pandemic has affected the entire global economy and Sabien has not escaped its impact.  However, in spite of this unprecedented disruption, Sabien’s revenues doubled in the second half of the financial year compared to the first half. This brings total sales (unaudited) for the year to approximately £460,000 (FY19: £1,379,000).  The decrease in full year sales, while disappointing, is explained by last year’s revenues including an exceptional order of £846,375 and by three months of lost sales due to the Covid lockdown in this period.

However, the Board believes that first half sales represent a “low watermark” after several years of diminishing performance by the previous Board and management team. Since the new management team has taken charge earlier this year, sales prospects are demonstrably strengthening, and consistent year-on-year growth is expected as the Company transitions into a more realisable go-to market strategy based on an enhanced product and service proposition.”

 

Fusion Antibodies 90p £22.9m (FAB.L)

Update on the Company’s trading and operations over the past two months.

The Company has commenced its proof-of-concept work on the Mammalian Antibody Library Discovery Platform and hit its first milestone in the COVID-19 associated project, with the synthesis  of the antibody library DNA. The Company has also made rapid progress on the design, expression and validation of the COVID-19 antigens and now has sufficient quantities of two variants to be used in the panning of the library for specific antibody producing cells, which is the next phase of the Library development programme. The multiple COVID-19 proteins generated are also being made available to diagnostic companies for potential commercial development. Furthermore, the Company has commenced the process for recruiting additional scientists to undertake the proof-of-concept work.

The Company has continued to service its clients throughout the current environment. The introduction and subsequent relaxation of restrictions in different regions around the world has presented opportunities as well as challenges and, taking this into consideration, enquiry and order rates have continued to be satisfactory, with revenue for the quarter to June 2020 of approximately £0.975 million. Further, subject to finalisation of its audit, the Company now expects to report revenues for the year to 31 March 2020 of c. £3.9 million, being a 79% increase on the prior year (FY19: £2.2 million).

 

Gunsynd 0.7p £1.17m (GUN.L)

£465k placing at 0.65p.  1 for 3 warrants at 1.3p. The net proceeds of the Placing will provide the Company with additional funding to progress its activities and make investments in line with its stated investing policy.

 

Oakley Capital Investments 219p £425m (OCI.L)

The listed investment vehicle providing investors access to the Oakley Funds2, has made a commitment of EUR75 million to the Oakley Capital Origin Fund, the latest Oakley Capital fund . The Origin Fund will follow the same investment strategy as the existing Oakley Funds but will focus on private companies in the lower mid-market, with enterprise values of up to EUR100 million. The Origin Fund’s typical investment size will be between EUR10 million and EUR50 million.

 

Checkit 40.5p £25.1m (CKT.L)

Appointment of Aylsa Muir as CFO designate.  It is anticipated that Aylsa will join the Board in September 2020. As previously announced Andy Weatherstone, Checkit’s current CFO, will continue to serve on the Board until September 2020 and a further announcement will be made at that time.

Aylsa brings with her a wealth of experience gained across multiple finance disciplines and industries including 10 years with Pepsico.  More recently her experience has been with Software businesses where she held Senior roles in both SD Worx UK Limited and private equity owned IRIS Software Group Limited.

 

ULS Technology 53.6p £34.8m (ULS.L)

The provider of online B2B platforms for the UK conveyancing and financial intermediary markets, announces that it has re-contracted with the Lloyds Banking Group  for a further two years

 

Steve Goodall, CEO at ULS technology, comments: “Our relationship with Lloyds Banking Group is very important to us and sits at the heart of the services we provide to the lender community. We provide LBG with a market-leading omnichannel conveyancing solution and look forward to augmenting this with our DigitalMove platform, giving customers real-time access to their conveyancing in the palm of their hand.

 

Eight Capital 0.025p £0.34m (AQUIS:ECP)

FY Dec 19 results from the investment company.   For the six months to 30 June 2019, our investment portfolio was valued at £0.4 million. At the end of December 2019, it was almost nine times that figure, at £3.8 million. The key contributing factor to that growth was the launching of a 5 million corporate bond program on the Vienna Stock Exchange at the end of July 2019.  The declared strategy is to invest in Financial Services including in investing companies, and the technology, media, and telecoms (“TMT”) sectors, with the objective of generating an attractive rate of return predominantly through capital appreciation. The portfolio accretion has stayed consistently within those parameters.

“Although our own operations were not affected, the Board is very conscious of the havoc caused by the COVID-19 pandemic and expect that it will have a braking effect on the development of parts of our investment portfolio. However, we are also seeing some very strong performances despite the current crisis, particularly from Greencare and Epsion (the revaluation of which we are considering) and have a reasonable expectation of a positive return to shareholders across the portfolio once the pandemic recedes.”.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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