Small Cap Feast

Small Cap Feast – 22 July 2020

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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

Altus Strategies 59.5p £41.7m (ALS.L)

Positive results from a Preliminary Economic Assessment (“PEA”) for its 100% owned Diba gold project in western Mali .

  • Positive PEA for an open-pit oxide gold mine with strong cashflow and rapid payback
  • Project economics applying a 10% discount rate and US$1,500/oz gold price: o  Pre-tax NPV of US$115 million, IRR of 728% and payback of 6.2 months; o  After-tax NPV of US$81 million, IRR of 469% and payback of 6.9 months
  • Project economics applying a 5% discount rate and US$1,800/oz gold price:
  • Average production of 52,000oz per year with 3.25 year mine life and low strip ratio of 1:1.37
  • Significant growth potential for Diba project: o  Seven further significant oxide gold targets to be systemically drill tested

o  Metallurgical study to test potential for sulphide ores to be processed via CIL · Diba is contiguous with the Sadiola mining permit at the heart of a world renowned belt

 

Tristel 410p £185.7 m (TSTL.L)

The manufacturer of infection prevention products, provides a trading update for the year ended 30 June 2020.

The Company confirms that results will be ahead of market expectations and expects to report turnover of no less than £31.6m (2019: £26.2m), a 21% increase, and adjusted pre-tax profit (before share-based payments) of at least £6.8m (2019: £5.6m), a 21% increase. Revenues from overseas markets increased by 32% and contributed 60% of total revenues – a record level (2019: 55%). Revenue in the UK, the Company’s largest and most mature market, rose by 7%. 

 

Itaconix 1.35p £5.84m (ITX.L)

The innovator in sustainable specialty polymers , put out a trading update for the half year to 30 June 2020.

Further to previous updates, the Company has continued to enjoy improved momentum with strong demand for its range of specialty polymers. Unaudited revenues for the first six months of the year were $1.1 million, representing circa 80% growth over the equivalent period in 2019 and circa 62% over the second half of 2019. As a result of the increase in revenues, unaudited LBITDA has decreased in line with management’s expectations. 

Volumes and revenues increased from new and recurring orders in detergent, odour control, and personal care applications. Significant revenue growth has come from customers successfully launching new dishwashing products using Itaconix formulas based on the Company’s new TSI 322 detergent polymer. In addition, several existing customers have increased the size of their recurring orders during the year partly to satisfy increased consumer buying related to stay-at-home practices in response to Covid-19.  The Company has increased production rates to keep up with anticipated demand across an increasingly diverse customer base.

 

Eve Sleep 2.125p £5.8m (EVE.L)

The direct to consumer sleep wellness brand operating in the UK, Ireland (together the UK&I) and France announces a trading update for the six months ended 30 June .  the direct to consumer sleep wellness brand operating in the UK, Ireland (together the UK&I) and France announces a trading update for the six months ended 30 June . Group revenue of £12.2 million – ahead of the Board’s expectations following strong trading in May and June

Positive marketing contribution for the period.

Underlying H1 EBITDA loss reduced year-on-year by c.80% to approximately £1.2 million – ahead of the Board’s expectations

Cash flow positive in the period

Net cash at 30 June 2020 of £9.1m (31 December 2019: £8.0m)

“We are well placed to benefit from the accelerated shift to online ordering and the increase in spend on homewares as consumers increase investment in their homes. eve will continue to focus on driving value for our shareholders and building a sustainably profitable business with strong growth potential.”

 

Scancell 7.25p £33.74m (SCLP.L)

The developer of novel immunotherapies for the treatment of cancer, today announces a proposed conditional Capital Raise to raise in aggregate up to approximately £15 million before expenses, with equity priced at 5.5p and £6m convertible notes with a conversion price of 6.2p.

The net proceeds from the Capital Raise, in addition to the Company’s existing cash resources and anticipated tax credits, will be used to:

  • strengthen the Company’s balance sheet to support potential partnering discussions for the Company’s antibody technology;
  • support clinical trials for Modi-1 Phase 1/2 and SCIB1 Phase 2; and
  • continue initial COVID-19 vaccine development until non-dilutive funding or third-party partnering transaction.

 

GYG 81p £37.8m (GYG.L)

The market leading superyacht painting, maintenance and supply company, today announces its audited Final Results for the year ended 31 December 2019.

Financial Highlights

  • Group revenue increased 41.8% to EUR63.8m (FY18: EUR45.0m)
  • Profit before tax increased to EUR0.8m (FY18: loss of EUR4.6m)
  • Net debt position2 of EUR8.2m at 31 December 2019 (FY18: EUR7.8m )
  • Cash of EUR5.5m at 31 December 2019 (EUR5.1m at 31 December 2018)

Orderbook EUR42.7m from EUR38.6m

 

Tekcapital 10p £8.8m (TEK.L)

The UK intellectual property (IP) investment group focused on creating marketplace value from investing in university technology, announced that its wholly owned portfolio company Lucyd Ltd, (“Lucyd”) the smartglass developer and operator of an eShop for tech-enhanced eyewear, has received a notice of allowance for 13 previously filed patents and has filed two new patents covering their forthcoming Lucyd Lyte Bluetooth® audio glasses.

 As a result,  Lucyd’s total IP position now consists of 24 patents (13 allowed design patents & 11 applications) which includes three pending utility patents,  and eight pending design patents.

 The Company’s manufacturing partner has just completed the first Lucyd Lyte beta production models, dubbed ” Darkside” and ‘Moonshot .” Lucyd expect to have the initial batch of the Lucyd Lyte beta units next week, and will begin beta testing with our network of tech and fashion influencers, and Lucyd eyewear fans. The Product launch for the Lyte line is anticipated to be in late September 2020.

 

Diaceutics 167.5p £141m (DXRX.L)

The diagnostic commercialisation company, announces a significant new client contract win with a leading pharmaceutical company. 

Diaceutics’ will collaborate with this new client to produce an outsourced commercial solution for its US market, using the Company’s new DXRX platform to improve patient testing and support the client’s pioneering activities in the field of immunotherapy. This initial contract is worth $1.27 million.

 

Blancco 187p £141m (BLTG.L)

The industry standard in data erasure and mobile device diagnostics, provides the following trading update for the financial year ended 30 June 2020 (“FY 2020”).

Blancco has continued to benefit from strong structural tailwinds which have supported continued revenue and profit growth in FY 2020. Although the COVID-19 pandemic lengthened sales cycles in the second half of FY 2020, the Board expect results for FY 2020 to be in line with current market expectations with revenue of approximately £33.4m (FY19: £30.5m) and Adjusted Operating Profit of approximately £4.0m (FY19: £3.5m). As anticipated at the time of the Group’s interim results in February 2020, cash generation has continued to improve in the second half of FY 2020 and the Group ended the year with £6.7m of net cash (30 June 2019: £0.1m).

 

Alba Mineral Resources 0.0825p £3.4m (ALBA.L)

Update on the Company’s field activities.

Key Points

Work activities at Clogau Gold Project have resumed following easing of COVID-19 lockdown.

The priority for Clogau for the remainder of 2020 will be the execution of an underground bulk sampling programme, subject to receipt of regulatory approvals.

The first bulk sample will be processed off-site at an accredited processing facility in the UK. Thereafter, Alba will establish its own dedicated pilot processing plant.

Amitsoq drilling programme deferred until 2021.

 

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

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