Small Cap Feast

Small Cap Feast – 30 July 2020

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What’s Cooking in the IPO Kitchen?

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

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 31 July.  Current mkt cap C$66.7m.


Breakfast Buffet

Diurnal Group 52p £63.5m (DNL.L)

Trading Update: Alkindi® revenues for the year ended 30 June 2020 were £2.39m (year ended 30 June 2019: £1.04m), representing year-on-year growth of 130%. This strong performance was driven by new country launches and increased market penetration in the UK and Germany. Moreover, it was achieved despite challenges in access to hospital-based prescribing physicians due to Covid-19 restrictions, particularly in Italy where Alkindi® was launched in February 2020.  Period end cash balance of £15.4m .

Today announces positive feedback from a pre-Investigational New Drug (IND) meeting with the US Food and Drug Administration (FDA) in relation to DITEST™ (native oral testosterone formulation), being developed by the Company as a treatment for male primary and secondary hypogonadism. The FDA has confirmed that DITEST™ can progress to a New Drug Application (NDA) via the 505 route.


Intercede 75p £37.8m (IGP.L)

The specialist in digital identity, credential management and secure mobility, announced its involvement in a successful bid for a ten-year contract with the U.S. Department of State (DoS) to create an innovative Identity Management System and Credential Management System (IDMS) solution compliant with Homeland Security Presidential Directive 12 (HSPD-12) for the DoS and its customers.


Yu Group 88.5p £14.4m (YU..L)

 The independent supplier of gas, electricity and water to the UK corporate sector, today provides an update on trading for the six months ended 30 June 2020.

Group revenues for the period are expected to be approximately £45.0m (H1 2019: £56.6m), reflecting the impact of Covid-19 and the associated reduction in customer energy consumption. The Group is pleased to report that there has been a marked increase in customer demand throughout May and June and volumes are on trend to return to pre lockdown levels. 

The Group’s swift response in implementing robust measures to reduce the risks associated with Covid-19 has ensured that the business has been able to continue to operate whilst supporting all customers. Despite the challenges faced, the Group has been able to achieve increased bookings growth during H1 2020. Average monthly sales bookings for H1 2020 were up significantly at £6.2m (H1 2019: £3.2m).


Volex 142.5p £217m (VLX.L)

AGM Statement from the  global supplier of integrated manufacturing services and power products. “Unaudited revenue for the three months ended June 2020 was $96 million, which was flat on the same period a year earlier. Given the disruption caused by the global coronavirus pandemic, we are very pleased with this result. Operating profit remains at a similar level to the prior year, and our cash balance as at 24 July was $30 million. Our $30 million revolving credit facility remains available and undrawn.

As noted in our results statement on 18 June 2020, we continue to see weakness primarily in the medical installation sector, as hospitals around the world remain closed for non-critical medical procedures. In our electric vehicle business, demand is approaching pre-crisis levels as customers re-open their factories and consumer preference continues to shift towards electric vehicles. We continue to see resilient demand in our consumer electronics and data centre businesses.”


Oriole Resources 0.475p £4.33m (ORR.L)

The  exploration company focused on West Africa, it has signed a US$250,000 sale agreement  with its Joint Venture partner Bati Toroslar Madencilik Sanayi ve Ticaret Ltd. Ști in relation to its Hasançelebi and Doğala mining royalties in Turkey. The Sale Agreement will provide US$30,000 within seven days, with the balance contingent upon the commencement of mine construction at either Hasançelebi or Doğala. These royalties have no carrying value in the financial statements of the Company.


IronRidge Resources 15.5p £62m (IRR.L)

The African focussed minerals exploration company, reported multiple additional high-grade drilling results and the definition of significant targets from the ongoing second phase drilling programme at the Ehuasso target, as well as initial high-grade drilling results from reconnaissance drilling at the Ebilassokro target, both within the Zaranou Gold Project area (“Zaranou”). The license borders with Ghana and is along strike from significant operating gold mines including Chirano (5Moz), Bibiani (5.5Moz) and Ahafo (17Moz).

“Ongoing drilling at the Ehuasso target continues to define significant mineralised zones in the broad 160m spaced AC drill grid .

“The Ghana-Man pit is shaping up to be our most significant target defined to date over a potential strike length of 1.6km and up to 100m wide and including high-grade intersections such as, with additional target areas defined for future RC infill drilling.

“We are pleased to report promising reconnaissance drilling results including 20m at 1.09g/t gold in hole ZAAC0317 at the Ebilassokro target, situated 9km to the north-east of the Ehuasso target.


Fireangel Safety 12.5p £15.8m (FA..L)

The Company expects to report H1 2020 sales of approximately £16.5 million (H1 2019: £20.7 million) and an underlying operating loss of approximately £2.7 million (H1 2019: loss of £1.7 million).  Within this result, the charge for non-cash depreciation and amortisation amounts to £1.9 million (H1 2019: £1.7 million).  In light of the impact of COVID-19, the Board believes it has taken appropriate actions to protect the Company, its employees and customers.  Given the extraordinary global events faced during the period, the Board considers the expected result for H1 2020 to be satisfactory and is encouraged by the strong start to the year made by the Company before domestic and international lockdown restrictions took hold.

Sales have been improving as a percentage of the Board’s pre-COVID-19 budget since May 2020 with performance in July 2020 expected to be in line with the revenue recorded in July 2019.  Both Retail and Trade sales in the month are expected to be higher than in July 2019 illustrating a return to more normal patterns of customer demand behaviour which the Board anticipates will continue.


Blackbird 18p £60.5m (BIRD.L)

The developer and seller of the market-leading cloud video editing platform, Blackbird, has been chosen by Sky News Arabia for remote and collaborative cloud video editing and publishing of digital news content.

Sky News Arabia is a 24-hour Arabic news channel broadcast across the Middle East and North Africa (MENA). With a free-to-air TV channel, digital and audio platforms, Sky News Arabia delivers analysis of both news from the Middle East and North Africa region and international news. The channel is broadcast to more than 50 million households in the MENA region.


Omega Diagnostics 65p £116m (ODX.L)

the medical diagnostics company focused on CD4, infectious diseases and food intolerance, notes the press release issued today by the UK Rapid Test Consortium (“UK-RTC”), of which Omega is a partner, on developing its COVID-19 lateral flow antibody test (the “AbC-19™ Rapid test”).

Further to the announcement on 29 June 2020 confirming design-freeze, Abingdon Health Limited, as lead partner of the UK-RTC, has today confirmed that it has CE-Marked the AbC-19™ Rapid test for professional use.

To achieve self-testing accreditation, pre-approval from the MHRA is required to perform self-test usability studies. The planned study will be performed by Ulster University using approximately 2,000 volunteers and, once complete, will allow the UK-RTC to seek final approval from the MHRA for self-test use. In addition, the test will also be subject to further independent evaluation.


Kazera Global 0.675p £4.6m (KZG.L)

Update on progress following its acquisition of Deep Blue Minerals on the 15th of last month:

  • The Company has successfully negotiated the purchase of all necessary machinery and equipment for the commencement of operations.
  • All of the machinery and equipment has now been delivered to the Company’s operational site in the Western Cape and has been made “mine ready”.
  •   All necessary staff have been recruited and have successfully undergone the required medical and security checks, as well as the mandated training.
  • The above have all been achieved within budget and ahead of anticipated time scales.
  •   Deep Blue Minerals have secured a sub-contract to mine beach diamonds in addition to the existing sub-contract to mine land diamonds.
  • Diamond mining will commence on 3 August 2020.


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