Small Cap Feast

Small Cap Feast – 18 June 2020

Dish of the Day:

Contango Holdings, CGO.L Admission to the Official List following the acquisition, by way of a reverse takeover, of a 70% interest in the Lubu Coalfield Project in Zimbabwe.   Lubu is a derisked development with total historical spend in excess $20 million and over 100 holes and 12,000m of drilling completed and Total resource in excess of 1 billion tonnes of coal . · Raised £1.4m with new and existing investors and now fully funded to first cash flow . Mkt Cap £10.8m.

 

Off the Menu:

No Leavers Today

 

What’s Cooking in the IPO Kitchen?

The pantry is bare!

Breakfast Buffet

Empire Metals 1.52p £2.9m (EEE.L)

Update on the proposed acquisition of a 58.6% interest in Munni Munni Pty Ltd, a subsidiary of ASX listed Artemis Resources Limited   and the beneficial owner of  a 70% interest in the Munni Munni Palladium Project in the West Pilbara, Western Australia. Following completion, Empire will hold a controlling 41% interest in Munni Munni, the largest unexploited primary PGE Resource in Australia.

  • All parties are working constructively with work continuing on a number of the conditions precedent
  • Commencement of a 13 hole, 1,820m Reverse Circulation (RC) drilling programme at Munni Munni in order to take advantage of the current drilling season
  • Munni Munni contains the largest intrusion in the West Pilbara and hosts a JORC-compliant 2004 Resource of 24Mt @ 2.9 g/t Platinum Group Element (PGE) and gold (12.4Mt Measured, 9.8Mt Indicated, and 1.4Mt Inferred), containing 1,140,000 ounces palladium; 830,000 ounces platinum; 152,000 ounces gold; and 76,000 ounces rhodium

 

Panther Metals 7.475p £3.64m (PALM.L)

Completion of its open-file desktop review of the wholly-owned Marrakai Gold Project, situated in the Northern Territory, Australia.  The Northern Territory has produced nearly 464 tonnes (t) or 14.9 million ounces (Moz) of gold (Au), and there are currently over 8,001 documented gold occurrences and a resource inventory of a further 530 t (17 Moz) Au.

Geological review highlights potential for further gold mineralisation within the Marrakai Project, with east and west portions of the tenement remaining completely untested.  · John’s Reef Gold Prospect contains visible gold, with high-grade rock chip assays varying from 30 g/t Au to 50.1 g/t Au.  · Chins Gully Gold Prospect contains visible gold, with up to 50 specks observed in panned concentrates.  · Historical drilling in the immediate vicinity of John’s Reef and Chin’s Gully provided near surface results including 2m @ 5.74 g/t and 2m @ 3.46 g/t Au.  · Project remains significantly underexplored with visible gold located in samples obtained from eastern and western flanks John’s Reef and Chin’s Gully.  · Two major exploration targets remain untested, represented by dykes of probable lamprophyric affinity, which can be hosts to gold mineralisation.

 

Corero Network Security 5.375p £26.6m (CNS.L)

Five new headline customer wins for its SmartWall ® DDoS protection products over the last two months, –including two new contract wins through its partner Juniper, totalling over $1.5 million over the course of the contracts.

 

Cora Gold 7.75p £14.8m (CORA.L)

US$21m mandate and term sheet with investment firm, Lionhead Capital Advisors Proprietary Limited (‘Lionhead’), to fund the future development of its flagship Sanankoro Gold Project in  Southern Mali.  This is conditional on, among other matters, the completion of a Definitive Feasibility Study  on the Project before the end of 2021.

  • US$21m Term Sheet to finance the development of Sanankoro on completion of a positive DFS o  US$6m Equity Financing

o  US$5m Convertible Loan Note o  US$10m Debt Financing

  • Term Sheet requires Cora to deliver a DFS with a minimum of: o  6 years mine life of 40,000 ozs/year gold production o  60% Internal Rate of Return (‘IRR’) based on a US$1,400/oz gold price
  • Sanankoro Scoping Study (January 2020, US$1,400/oz gold price) results: o  US$20.6m Pre-Production Capex o  +US$19m/year free cash flow and an 84% IRR o  45,000 ozs/year average production
  • Current focus remains on resource growth with a DFS planned during 2021

 

TP Group 7.75p £14.8m (TPG.L)

Subsidiary Sapienza Consulting has received a series of work orders under its framework contract with the European Space Agency (ESA), the extension of which was announced on 24 March 2020.

The work orders, worth approximately 18 million, cover tasks until the end of 2022 on a range ESA programmes at the European Space Technology Centre at Nordwijk in the Netherlands. Further work orders remain in discussion under the extended framework contract.

 

Avacta 138p £325m (AVCT.L)

Collaborative work with the Centre for Virus Research at the University of Glasgow has shown that Affimer reagents which bind to the SARS-COV-2 virus spike protein prevent infection of human cells by a SARS-COV-2 model virus and therefore provide a potential therapy for COVID-19 infection. Avacta has now successfully completed the initial phase of a collaboration with Professor David Bhella at the University of Glasgow showing that these “neutralising” Affimer reagents prevent a SARS-COV-2 model virus from entering human cells and therefore provide a potential therapy for COVID-19.

 Work is continuing with Professor Bhella to further study the way in which the Affimer reagents prevent infection and Avacta is using this growing body of data actively to secure a large pharmaceutical partner to develop these potential therapeutic candidates rapidly.

 

Novacyt 255p £180m (NCYT.L)

The international specialist in clinical diagnostics, announces the launch of three new products to support laboratories testing for COVID-19. These are Exsig™ Direct and Exsig™ Mag, two RNA extraction kits for use prior to running a polymerase chain reaction (PCR) test for COVID-19, and COVID-HT, a high-throughput test for COVID-19.   

 

Petards Group* 6.95p £4m (PEG.L)

FY Dec 19 results. Revenues £15.7m. Loss of £193k

£1m post post year-end cash receipts in respect of pre-2019 R&D investment. Outlook positive for the sector with UK Government committing further investment for railways, law enforcement and security where the company is heavily embedeed with large customers.  Solid order book at 31 May 2020 of over £13 million, provide the Board with confidence for the Group’s future prospects

 

NetScientific 8p £6.3m (NSCI.L)

Portfolio company PDS Biotechnology Corporation  (Nasdaq: PDSB) today announced a co-development agreement with Farmacore Biotechnology for Versamune®-CoV-2FC, a Versamune®-based vaccine aimed at preventing COVID-19 infection.

Under the collaboration, PDS Biotech and Farmacore will accelerate development of Versamune®-CoV-2FC into Phase 1 clinical testing in Brazil, with initial financial support provided by the Brazilian Ministry of Science, Technology, Innovation and Communication (MCTIC). Versamune®-CoV-2FC combines a Farmacore-developed recombinant SARS-CoV-2 protein with PDS Biotech’s Versamune® platform nanotechnology. The rapid advancement of this joint COVID-19 program expands upon a previously announced research and development collaboration between PDS Biotech and Farmacore to develop a Versamune®-based vaccine for tuberculosis.

  NetScientific holds 7.18% of PDS’ undiluted share capital.

 

Volex 150.5p £229m (VLX.L)

Prelims to 5 April 2020

  • Underlying operating profit increased by 46.3% to $31.6 million
  • Revenue growth of 5.2%
  • Statutory profit after tax increased by 59.8% to $14.7 million
  • Exceptional cash generation with underlying free cash flow of $48.8 million
  • Net cash excluding lease liabilities of $31.6 million as at the year end. Final div 2p.

Unaudited revenue for the four months ended May 2020 was $126.2 million, 4% ahead of the same period a year earlier. During this period, the business has performed ahead of expectations, although we are now seeing areas of weakness primarily in the medical equipment installation sector, as hospitals around the world remain closed for non-critical medical procedures. In our electric vehicle business, after weakness in March and April due to customer factory closures, we are starting to see a recovery. Our consumer and data centre businesses continue to perform well.

However, the duration and breadth of the market disruption arising from this situation remains unclear and therefore we do not believe it is appropriate to provide financial guidance for the current year at this early stage. We remain optimistic for our business prospects over the medium term and consider that our focus on the high-quality growth markets of medical, electric vehicle and high-speed data centre products, combined with our strong funnel of design wins in our Integrated Manufacturing Services division, will allow us to grow and prosper in the years to come.”

 

Head Chef:

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

*A corporate client of Hybridan LLP

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