Small Cap Feast

Small Cap Feast – 20th December 2016

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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.


Breakfast Buffet

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.


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