Small Cap Feast

16th May 2022

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What’s Cooking In The IPO Kitchen?

Lekoil, the oil and gas exploration and production Company with a focus on Nigeria and West Africa intends to join the AQSE Growth Market. The Company was previously listed on AIM (LEK.L), however, Ordinary Shares have been suspended from trading on AIM since October 2021. Due 18th May 2022.

EnSilica, intends to join AIM. EnSilica is a designer and supplier of mixed signal Application Specific Integrated Circuits (ASICs). The Company has expertise in designing complex mixed signal ASICs, which combine digital and analogue functions onto a single chip. Mkt Cap TBC. Due late May 2022.

Altona Rare Earths, the AQSE listed mining exploration Company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company’s Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due May 2022.


Breakfast Buffet

Empire Metals 1.625p £6.9m (EEE.L)

The AIM-quoted resource exploration and development Company announces the assay results of the Diamond Drill (DD) programme at the Eclipse Gold Project, in Western Australia. The DD programme, the second carried out by Empire at Eclipse, was designed to gather further geological and structural information on the mineralised shear and to test for lodes below the gold-depleted zone of weathering. Highlights include recent drilling has confirmed that the gold mineralisation associated with the NW-striking and steeply SW-dipping shear zone (Eclipse shear) extends over a strike length of more than 500 metres, an increase in strike length of over 300 metres from the previously reported extent of mineralisation along the Eclipse shear. Six DD holes for a total of 999m were completed, focused mainly on demonstrating that the gold mineralisation persists at depth around the Eclipse shaft and Jack’s Dream shaft, and to test for continuity along strike between Eclipse and Jack’s Dream and to the north-west of Jack’s Dream.

Faron Pharmaceuticals 230p £122.4m (FARN.L)

A clinical stage biopharmaceutical Company focused on building the future of immunotherapy by harnessing the power of the immune system to tackle cancer and inflammation today announces that both the U.S. Food and Drug Administration (FDA) and Finnish Medicines Agency (FIMEA) have cleared Faron’s Investigational New Drug (IND) application to begin the Company sponsored BEXMAB study. BEXMAB is a novel Phase I/II study to assess safety, tolerability and preliminary efficacy of bexmarilimab, Faron’s wholly-owned investigational precision cancer immunotherapy, in combination with standard of care (SoC) therapy in patients with relapsed acute myeloid leukemia (AML), myelodysplastic syndrome (MDS), or chronic myelomonocytic leukemia (CML). This marks the first time bexmarilimab will be assessed as part of a clinical study in hematologic malignancies.

FinnCap 22.5p £40.7m (FCAP.L)

finnCap announces that Stuart Andrews, an executive director of the Company and the Managing Director of finnCap Limited has decided to step down from his roles and leave the Company today in order to pursue other interests. Sam Smith, CEO of finnCap said: “Stuart served on the Board since our IPO in 2018 and of finnCap Limited since 2014. He has been a senior leader of our ECM business for over a decade. Through his dedicated leadership of our capital markets business, the team has achieved many firsts and remained a leading nominated adviser on AIM. In FY21 and FY22 the team delivered its best-ever performances. Stuart was a key part of finnCap’s IPO and acquisition of Cavendish in 2018 and has been a large part of the development and implementation of our strategy to diversify our range of strategic advisory services. I would like to thank Stuart for his role in building finnCap into the business it is today and we wish him the very best with his future endeavours.”

Horizonte Minerals 6.9p £262.8m (HZM.L)

The nickel company focused in Brazil announces its unaudited financial results for the three month period to 31 March 2022 and the Management Discussion and Analysis for the same period. Highlights include closing of US$633m funding package for construction of Araguaia nickel project and awarded a number of key construction contracts including furnace, EPCM, and earthworks. Further additions to the project execution team have been made and approved start of construction in late January 2022 with earthworks contractor mobilised to site in May to maximise productivity during the dry season. Project development work is running in line with the project execution schedule with a significant ramp-up in activity expected over the coming months in the dry season. Company to adopt reporting currency to USD (previously GBP) ahead of first revenue in 2024 and a strong balance sheet with cash and cash equivalents US$252m at 31 March 2022.

Jubilee Metals Group 14.65p £387.1m (JLP.L)

A leader in metals processing with operations in Africa (AIM: JLP/Altx: JBL), provides a performance update of its new and expanded fully integrated South African Inyoni PGM and Chrome Operations and its Zambian Southern Copper Strategy, which involves integrating the Sable Copper and Cobalt refinery with the newly constructed copper concentrator, Project Roan. This new and significantly enlarged operational footprint follows an investment programme implemented over the past 12 months of 39.5 m (ZAR 786 m). Highlights, South Africa: new and expanded Inyoni Operations is already exceeding design throughput targets reaching 86 000 tonnes per month of chrome and PGM containing run-of-mine (ROM) feed, together with 40 000 tonnes of PGM containing historical tailings material, placing Jubilee on course to achieve its PGM ounce production target of 44 000 ounces per annum through its 100% owned Inyoni alone (previous max design capacity 30 000 ounces), replacing any reliance on existing PGM recovery joint ventures. Zambia: Project Roan commissioning activities are nearing conclusion with the official hand-over of the new copper concentrator to the operational team. The ramp-up of the concentrator is expected to reach design capacities during July 2022, which targets the processing of 830 tonnes of copper in concentrate per month for refining at Sable.

Life Science REIT 102p £357m (LABS.L)

The real estate investment trust focused on UK life science properties announces that, on 13 May 2022, it completed the acquisition of Oxford Technology Park (OTP), a 20 acre science and technology park which, once fully developed, will comprise up to 450,000 sq ft of mixed-use life science space and amenity assets. The first buildings on the park are already complete and delivering rental income. OTP was acquired for a purchase price of £120.3m from Angus and Alicia Bates, who have owned and developed the park since 2007. The acquisition includes OTP’s debt of £33.8m and the Company will also provide up to £62.7m of forward funding to complete the park’s build-out, which will continue to be managed by the developer until practical completion. The park provides a unique combination of space, with flexibility for the laboratory, production and office uses required for life science occupiers along with amenity facilities.

Metals Exploration 1.1p £22.8m (MTL.L)

A gold producer in the Philippines, announces its final audited results for the year ended 31 December 2021. Notwithstanding ongoing COVID-19 pandemic impacts, for the third successive year the project produced an operational profit. Operational profit was US$29.4m (2020: US$30.5m) as the Runruno mine’s operational performance in FY2021 consolidated upon positive improvements that first emerged during FY2019. Cash generated from operations was US46.5m (FY2020: US$28.8m). Gold production for FY2021 was 73,206 ounces (2020: 67,552 ounces) which exceeded the Group’s FY2021 production guidance of between 64,000 to 67,000 ounces. The increased gold production was achieved with average gold recovery improving by 17% from 72.2% in FY2020 to 84.5% in FY2021. The All-In-Sustaining-Cost (AISC) for FY2021 was US$1,281 per ounce (2020: US$1,259 per ounce), which was in line with the FY2021 AISC guidance of approximately US1,275 per ounce.

NetScientific 82p £17.3m (NSCI.L)

The international life sciences and sustainability technology investment and commercialisation Group announces that its wholly owned subsidiary ProAxsis has completed the development and validation of the AstraZeneca COVID-19 antibody test with “impressive performance evaluation results.” In June 2021, ProAxsis entered into a licensing agreement with AstraZeneca, under which ProAxsis took responsibility for completing the development, validation and global commercialisation of a SARS-CoV-2 (the virus associated with COVID-19) serology ELISA (enzyme-linked immunosorbent assay). The assay showed exceptional levels of sensitivity and specificity of 100% and 99.3% respectively, and enabled the SARS-CoV-2 antibodies to be measured and tracked over time in individuals. The test uses a simple blood sample, and will be launched into the research and clinical trials markets, which are a core part of ProAxsis’s business.

Sirius Real Estate 115.8p £1,357.4m (SRE.L)

The leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK, announces that it has agreed the sale of an asset in Camberwell, London, for £16m representing a NIY of c. 2.0%. The asset formed part of the portfolio Sirius acquired in November 2021 with its purchase of BizSpace, the leading provider of regional light industrial, workshop, studio and out of town office units across the UK. The sale price represents a 94% premium to the valuation at the time of Sirius’ acquisition of BizSpace. The multi-tenanted business park, which comprises approx. 34,700 sq ft of industrial and office space, is 91% occupied following a series of asset management measures delivered through the BizSpace platform. The sale is expected to complete in July 2022.

Union Jack Oil 26.5p £29.9m (UJO.L)

A UK focused onshore hydrocarbon production, development and exploration Company, announces its audited results for the year ended 31 December 2021. Oil revenues increased by over 1,000% during 2021; a maiden gross profit on oil sales achieved; cash balances and near-term receivables of £7,545,575 as at 9 May 2022.The Company is currently funded for all operational and contracted or planned CAPEX costs, including any budgeted drilling activities for at least the next 12 months. Successful proppant squeeze and coiled tubing exercise at Wressle resulted in an instantaneous flow rate of over 1,000 barrels of high-quality oil per day (bopd) being achieved with zero water cut. Completion of purchase of a further 15% interest in PEDL253 containing the Biscathorpe Prospect, bringing Union Jack’s interest to 45%.

16 May 2022
*A corporate client of Hybridan LLP

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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).

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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.

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