Small Cap Feast
Small Cap Feast – 20th December 2016
Dish of the Day:
No AIM Joiners Today
No AIM Joiners Today
Off the Menu:
No AIM Leavers Today
No AIM Leavers Today
What’s Cooking in the IPO Kitchen?
Ultimate Products—The Telegraph reports Jim McCarthy, former chief of Poundland has been appointed Chairman of Ultimate Products ahead of a £100m listing in H1 2017. Ultimate Products owns the Beldray cleaning brand and the licence to sell Russell Hobbs and Salter electrical products in the UK.
Spitfire Oil (SRO.L) 3.13p £0.8m
FY June16 results. Pre-tax losses stable at A$623k. Cash balance of A$3.8m. The Salmon Gums Lignite Project remains on hold and the Retention Licence on which it occurs has been renewed for a further year until September 2017. The directors continue to pursue potential joint ventures for the development of facilities to process the Salmon Gums lignite. The Company has continued to keep its running costs to a minimum while reviewing possible new projects. A number have been considered during the year but have so far not met requirements.
Amerisur Resources (AMER.L) 25.75p £311.08m
The oil and gas producer and explorer focused on South America, provided an update on corporate activities in Colombia. Amerisur is to acquire, subject to approval from the Agencia Nacional de Hidrocarburos (ANH), the remaining 50% working interest in the Put 30 contract area and a new 40% working interest in the Put 9 Contract. The application for approval to ANH includes the appointment of Amerisur as operator of Put 30. Put 9 is located immediately to the north of Put 12 and to the east of Platanillo and is operated by Meta Petroleum Corp. with a working interest of 60%. ‘On the basis of existing seismic data there are several interesting structures which are shared between Put 12 and Put 9.’
Edenville Energy (EDL.L) 0.39p £2.9m
The Company developing an integrated coal to power project in western Tanzania, announced the final set of results received from SGS Laboratories in relation to the recent bulk sampling programme carried out on the Mkomolo and Namwele deposits. These results cover seam NM1 and follow the results of the sampling of seam MK2 announced on 15 November 2016 and MK1 on 5 December 2016. Results from seam NM1 for the Namwele deposit confirm coal as suitable for the provision of power plant feed; It is considered no washing will be needed for the Namwele seam to be used as power plant feed; Namwele NM1 seam results have exceeded expectations with approximately 60% of the coal averaging an energy value of 20MJ/kg; Looking at options to commence mining ops in 2017.
Scientific Digital Imaging (SDI.L) 17p £10.9m
The group focused on scientific and technology products for use in applications including life sciences, healthcare, astronomy, consumer manufacturing and art conservation, has announced the conditional acquisition of Astles Control Systems Limited for initial consideration of £3.446 million and an equity fundraising of £3.1 million at 13p, with institutional and other investors as well as management. Astles designs, manufactures and supplies bespoke chemical dosing systems and operates in niche markets, predominantly two piece beverage can manufacture. In addition, servicing of installed systems provides a repeat business revenue stream.
IXICO (IXI.L) 34p £9m
FYSep16 results from the brain health company. Performance reflects the start-up of 7 new clinical trials and integration of Optimal Medicine. Revs flat at £3.1M. Op losses doubled to £2.9m Cash of £3.1m. Continued expansion of the customer base and launch of Assessa® PML platform. Assessa® PML partnership with Biogen to improve the risk profile of a multiple sclerosis drug. New sales wins of £4.7 million – 4 new contracts in Alzheimer’s disease at combined value of over £3.0 million – Changing sales mix and continued expansion into other disease area.
eServGlobal (ESG.L) 5.875p £37.61m
FY Oct16 results from provider of innovative mobile financial technology. Revenue of A$21.6m (€14.5m) compared to the prior year of A$25.9m (€17.6m). Considerably reduced EBITDA loss of A$11.0m (€7.3m) compared to the prior year EBITDA loss of A$22.9m (€15.6m). Cash and cash equivalents at 31 October 2016 of A$9.4m (€6.5m). Raised a total of A$26.2m through placing and open offer. Orders up 60% including a number of multi year contracts and a significant channel partner agreement.
1Spatial (SPA.L) 2.13p £15.62m
H2 Jan 17 trading update from the Spatial Data company. While 1Spatial’s sales pipeline and order book remain robust, due to a number of factors, including transitioning the business model to one of annualised revenues and the extension of the industry sales cycles, timing of certain key contracts are now expected to fall into 2017. As a consequence, the Company now expects to deliver a marginal Adjusted EBITDA loss for the full year ending 31 January 2017. The Company anticipates ending the financial year comfortably within its current banking facilities. Also selling down non-core assets.
Berkeley Energia (BKY.L) 54.25p £134.14m
Full construction of its 100% owned Salamanca mine will commence early next year following the order of the first major items for the crushing circuit. Proceeds raised from the recent US$30m equity raise have been used to order primary and secondary crushers from the Sandvik Group, one of the world’s leading suppliers of crushers and related equipment, in a move that accelerates development of the Salamanca mine. The final cost of the equipment ordered was more than 20% below estimates from the Definitive Feasibility Study.
Mariana Resources (MARL.L) 66.1p £81.9m
The exploration and development company with projects in Turkey, South America, and Ivory Coast has updated on the ongoing diamond drill program at the high grade Hot Maden gold-copper project in NE Turkey. Results are reported for a total of 12 infill and extension drill holes with drill log data provided for a further 6 holes for which assays are pending. Best results include: Infill Section 4,542,125N HTD-85*: 60.6 m @ 82.2 g/t Au + 1.44% Cu from 209.4m downhole. This mineralised zone (approximate true width 35m) is the best intersection to date.
Bacanora Minerals (BCN.L) 70p £77.56m
The Company focused on developing the Sonora Lithium Project in Mexico into a world class lithium carbonate operation, announced that it is continuing to develop a long term marketing relationship and off-take strategy and is now in advanced discussions with a significant Asian offtake partner for the supply of battery grade lithium carbonate (Li2CO3). As demonstrated in the Pre-feasibility Study announced in Q1 2016, the Company anticipates commissioning an operation capable of delivering 17,500 tonnes per year of battery-grade Li2CO3 for the first two years, following which it anticipates expanding its operations to 35,000 tonnes Li2CO3 per year.
Emily Liu, CFA, CAIA
0203 764 2344
0203 764 2345
*A corporate client of Hybridan LLP
This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.
The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.
The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).
Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.
This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.
In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.
Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.
Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.
Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.
This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.
MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.
Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.
If you would like to unsubscribe, please email firstname.lastname@example.org with “unsubscribe me”.