Small Cap Feast

Small Cap Feast – 13 October 2020

Dish of the Day:

YAMANA GOLD INC. (TSX:YRI; NYSE:AUY, LSE:AUY) has joined the Main Market (standard). It is already listed on the TSX and NYSE. Yamana  offers “investors exposure to a pure-play senior gold producer with a high-quality asset portfolio in mining-friendly jurisdictions in the Americas “ Mkt cap US$5.9bn.

 

Off the Menu:

TEX Hldgs has left the Main Market (standard).

HML Holdings has left AIM following a cash offer.

 

What’s Cooking in the IPO Kitchen?

Meritwell II intends to list on the Specialist Funds Segment of the LSE raising up to £250m. The Placing will provide UK institutions with the opportunity to “swap” illiquid holdings which have become time and resource consuming holdings, at their bid price, in return for ordinary shares in the Company. Due 26 Oct.

Mailbox REIT PLC , a newly formed single asset company which owns the Mailbox , a large prime office-led mixed use property in Birmingham which has been independently valued at £179m, announced its intention to raise up to £62.5m  MailBox REIT  will apply for the Ordinary Shares be admitted to trading  on the IPSX Prime segment of International Property Securities Exchange (IPSX ).   IPSX is a new Regulated Investment Exchange regulated by the FCA and is the world’s first such exchange dedicated to the initial public offering and secondary market trading of companies owning single institutional grade real estate assets and multiple assets with commonality. Due 21 October.

Kaspi.kz, which operates the Kaspi.kz Super App, Kazakhstan’s most popular mobile app and the gateway to its market leading Payments, Marketplace and Fintech platforms  intends to conduct a secondary GDR offer on the LSE. Timing tbc

Tirupati Graphite, the fully-integrated, cash generative, specialist graphite and graphene producer with operations in Madagascar and India, announced its potential intention to undertake an initial public offering on the LSE (standard listing). Timing tbc

Buffettology Smaller Companies Investment Trust— Buffettology is seeking to raise a minimum of £100m via an initial placing, an offer for subscription and an intermediaries offer on the Main Market. will be the Investment Manager to the Company, led by Keith Ashworth-Lord (CIO of Sanford Deland Asset Management Limited). Sanford DeLand manages approximately £1.4bn across two open ended funds, the CFP SDL UK Buffettology Fund and the Free Spirit® Fund.  Due 29 October.

Wheaton precious Metals (TSE:WPM) – Proposed secondary listing on bringing one of the world’s largest precious metal streaming companies to the London Stock Exchange. Due Q4 2020.

Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List.  Timing tbc

Kibo Energy PLC, the multi-asset Africa focused energy Company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (MED), to the Standard List of the London Stock Exchange plc. Targeted for Q4 2020. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times

 

Breakfast Buffet

Sareum Holdings* 1.445p £47m (SAR.L)

FY Jun 20 results from the specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases. Entered a global licensing deal for its FLT3+Aurora kinase inhibitor programme targeting blood cancers with a China-based specialty pharmaceutical company

Phase 1/2 trials of SRA737 as a monotherapy and in combination with low dose gemcitabine were both reported to be complete by license holder, Sierra Oncology.

Excellent progress with their TYK2/JAK1 inhibitor programmes. Now advancing into toxicology studies needed to complete preparations for clinical trials.

  • A grant application has been submitted to UK Research and Innovation (UKRI) to fund preliminary laboratory studies investigating the potential of Sareum’s TYK2/JAK1 inhibitors to address the severe inflammatory responses (the “cytokine storm”) and potentially fatal respiratory symptoms of Covid-19 and other viral infections.
  • A response is expected by the end of October 2020 which, if successful, will enable initial studies to begin shortly thereafter.

Cash at bank as of 30 June 2020 was £1.80m

 

Panther Metals 9.225p £4.89m (PALM.L)

Commission of a high-resolution  Airborne Electromagnetic (“AEM”) and Magnetics geophysics survey over the Dotted Lake Property on the north limb of the Schreiber-Hemlo greenstone belt in Ontario, Canada. Survey will total a planned 1,024 line-km, flown at 50m spacing with 500m control lines, and orientated perpendicular to the dominant lithological strike direction.

Survey is expected to be flown late October / early November with processed results available for planning the 2021 programme of works over the winter break.

Dotted Lake Property is located 93km east of Panther’s Big Bear Gold Project, 18km north of the Barrick Hemlo Mine and 34km north-east of the Marathon Palladium Project where a proposed open pit mine for palladium, platinum, gold and copper is currently undergoing permitting and planning by Generation Mining.

 

NQ Minerals 625p £23.8m (AQSE:NQMI)

Production results and unaudited financial results for its wholly owned Hellyer Gold Mines Pty Ltd (“Hellyer”) for the quarter ending 30 September 2020 (Q3 2020).

 Lead concentrate production was up 35% from the previous quarter (ending 30 June 2020) and up 78% compared to the same quarter last year.

 Zinc concentrate production was up 8% from the previous quarter and up 38% compared to the same quarter last year.

 Significantly, unaudited net revenue from Hellyer for the quarter was A$19.1m and gross profit realised for the quarter was A$10.7m.  During the quarter, the Company realised positive commodity finalisation adjustments which increased net income before income taxes for the quarter at Hellyer to A$15.8m.

 

Universe Group 4.13p £10.8m (UNG.L)

The developer and supplier of retail management solutions, payment and loyalty systems, announced the appointment with immediate effect of Carmel Warren as interim Chief Financial Officer for an initial period of six months. Daryl Paton will remain with the Company until 1 November 2020 to ensure a smooth handover. Carmel will not join the Group’s board of directors. 

Carmel is an experienced public company finance director, having most recently acted as CFO of D4t4 Solutions plc, the AIM quoted data analytics business, and prior to that was CFO of Celebrus Technologies Ltd, a customer intelligence software company. Carmel previously spent eleven years with ExxonMobil and qualified as an accountant with EY.

 The process to appoint a permanent Chief Financial Officer is continuing and a further update will be provided in due course.

 

Altyn 1.97p £53.9m (ALTN.L)

The design of the construction of section IV of tailing storage facility (TSF) at Sekisovskoye gold processing plant is nearing completion as of October 2020. The construction work is planned to start in Q2 2021 as soon as the required permits and approvals from state supervision authorities are obtained. As such, an additional storage facility will be built for stowing over 1.0 mln m3 of tailing solids, which should allow uninterruptible operation of the gold processing plant until 2024.

Furthermore, preliminary design work on the construction of section V of TSF has commenced. It is expected that this will be commissioned in 2023 which will ensure the continuity in operation of the gold processing plant after 2024.

 

Palace Capital 195.25p £90m (PCA.L)

The property investment company that has a diversified portfolio of UK commercial real estate in carefully selected locations outside of London, updated ahead of its interim results for the period ended 30 September 2020, which are expected to be announced on Tuesday 17 November 2020.

  • 94% and 90% of rents collected for the March and June quarters, respectively.
  • 70% of all rents due on the September quarter date collected, a higher percentage than at the equivalent stage in the previous two quarters with November and December monthly payments to come. · Cash reserves as at 30 September 2020 were £14.3 million with a further £5.0 million available from the revolving credit facility.
  • Eight further apartments sold since the year end at Hudson Quarter, York, with 36 now sold at an aggregate value of £9.6 million. · Concessions granted at Sol Northampton with Accor Hotels in return for a five-year lease extension until 2032 and with Gravity Fitness in return for removal of the break clause, securing lease to 2034.   
  • Disposals of Meadowcourt, Sheffield for £1.25 million, 30% above book value, and Hyde Abbey House, Winchester sold post half year end for £1.46 million, 16% above book value.
  • Minimum dividend payments of 2.5p per quarter recommenced, with next payment due on 16 October 2020.

 

OnTheMarket 100p £71.84m (OTMP.L)

The majority agent-owned company which operates the OnTheMarket.com property portal, today announces its unaudited interim results for the six months ended 31 July 2020  ·   Revenue and ARPA up 28% and 15% respectively, despite COVID-19 related customer support discounts of £1.8m and the curtailment of contract conversion activity.

  • Group achieves profitability as a result of measures implemented to reduce costs and conserve cash. In particular, marketing expenditure was down 67% to £2.2m (H1 19/20: £6.6m). 1,512 new home developments listed following the launch of the new homes offering in September 2019. · As lockdown restrictions were effectively lifted, year-on-year visits in July 2020 increased 173% to 27.5m and average leads per advertiser increased 56% to 148.

 Assuming the UK housing market remains open and active, the Group expects revenues and costs to increase from H1 20/21 levels in the second half year to 31 January 2021, as it invests to enhance service and increase value to customers. The Group expects to achieve a broadly breakeven adjusted operating profit position for the full financial year .

 

Actual Experience 100p £47.65m (ACT.L)

 The analytics as a service company, announced that  following the recent development of its new Human Experience Management (“HXM”) offerings for its partners, it has signed a 3-year extension of its framework agreement with Proquire, the procurement arm of Accenture plc.  The new offerings have been added to the agreement and will be available for Accenture client engagements globally. Whilst the agreement does not represent a guaranteed revenue generation, the Board of Actual Experience believes that Accenture has the potential to become a significant Channel Partner.

 

Oncimmune Holdings 183.5p £116.6m (ONC.L)

The global immunodiagnostics group, today announces that, following its announcement on 6 October that Oncimmune is being funded by the UK Government to develop a COVID-19 biomarker panel, the Company has signed a commercial agreement with Cedars-Sinai, California, USA, to provide antibody profiling in COVID-19 samples as biomarkers for this disease.  Cedars-Sinai is a world-leading medical research organisation serving more than 1 million people each year in over 40 locations, with more than 4,500 physicians and nurses and 1,500 research projects in progress.

 

Thor Mining 0.975p £14m (THR.L)

Completion of the third phase of gold geochemistry reconnaissance at the 100% owned Pilbara Goldfield tenements (E46/1262 and E46/1190) in Western Australia.

The program was designed to  follow up  previously reported success from stream sediment samples collected across the tenements, which defined  a highly anomalous 13km long gold target zone,  with gold values up to 256ppb (19PST 19F -AR25) and 130ppb (20PST 24F-BLEG);

The geochemical program focused on follow up stream sediment gold results, with sampling upstream toward potential source rock, with some additional  reconnaissance sampling and one traverse sampled (sediment and rock chip) across the stratigraphy in the anomalous areas (Figure 1).

Sampling conducted primarily within the 13 km gold corridor (target zone) trending NW-SE along the mafic/ultramafic thrust faulted contact ).

The geochemical samples are currently in transit to the Perth laboratory, with assay results anticipated mid-November.

The close spaced airborne geophysical survey (airborne magnetics) flown over the full tenure as previously announced is now completed with data processing and modelling underway.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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