* A corporate client of Hybridan LLP
** Arranged by type of listing and date of announcement
*** Alphabetically arranged
**** Potential means Intention to Float (ITF) has been announced, or it is a rumour
Dish of the day
Delistings:
Foresight Sustainable Forestry Company (FSF.L) has left the Premium Segment of the Main Market.
What’s baking in the oven? **
Banquet Buffet***
Arrow Exploration 30.75p £90.9m (AXL.L)
The high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, provides an operational update, particularly on the multi horizon, Carrizales Norte (CN) field on the Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50% beneficial interest. CNB HZ-3: The second of the Ubaque horizontal wells planned for 2024 is now on production. The second horizontal well on the CN "B" pad (CNB HZ-3) is exceeding expectations and is being restricted to a current flow rate of 3,038 BOPD gross (1,519 BOPD net to Arrow) with less than 6.5% water cut while still recovering load fluid. Meanwhile, the CNB HZ-1 is continuing to perform above expectations and is being restricted to a current flow rate of 2,220 BOPD gross (1,110 BOPD net to Arrow) with approximately 34% water cut. CNB HZ-1 average production for the first 30 days of production (IP30) was 2,650 BOPD gross (1,325 net).
Block Energy 1.1p £8.0m (BLOE.L)
The production and development company focused on Georgia provides an operational update. Production has performed above forecast and the average production rate for July 2024 was 534 boepd, primarily driven by good performance from Project I wells. The restructure which commenced in January 2024 was completed, resulting in efficiencies across the Georgian cost base at the end of Q1 2024. The Company has remained cashflow positive throughout 2024. Meanwhile, the $2m Loan Facility previously announced on 2 February 2023 (and amended and announced on 12 May 2023) has been amended further. This amendment has the effect of extending the Loan Facility for a further 18 months (to 2 February 2026). The terms remain substantially the same as the previous loan: an interest rate of 16% p.a., payable quarterly in arrears in cash. The Company can continue to elect to repay amounts outstanding under the Loan at the end of each quarter, in part or in full, subject to a 2% early repayment fee.
European Metals Holdings 13.25p £27.5m (EMH.L)
The mineral exploration and development company with an aim to create a sustainable European lithium supply chain, provides an update regarding the Cinovec Lithium Project. The Company advises that the timeline for the completion of the Definitive Feasibility Study (DFS) and therefore construction of the Cinovec lithium processing plant continue to be worked on. Given the change to the location of the lithium processing plant from Dukla to Prunéřov, additional geotechnical work is currently underway to confirm the optimal construction method and layout at the new site. Results from this geotechnical work are expected to be available at the end of September. DRA Global is then expected to provide a detailed timeline and begin the DFS finalisation program of work.
The global supplier of compound semiconductor wafer products and advanced material solutions, announces the planned initial public offering of the Group's Taiwanese operating subsidiary (IQE Taiwan) on the Taiwan Stock Exchange (TWSE). The Group intends to list IQE Taiwan on the TWSE and to sell a minority shareholding through a public offering. It plans to retain control of IQE Taiwan and will continue to leverage its strategic value, with the proceeds of the public offering intended to be utilised across the Group to fund the growth strategy. The IPO will be a two stage process, with the initial phase of listing on the Emerging Market Board expected in H1 2025.
Kodal Minerals 0.545p £110.3m (KOD.L)
The mineral exploration and development company provides an update on project development activities at its fully funded Bougouni Lithium Project in Southern Mali. Bougouni is fully funded through the Hainan funding transaction as previously announced on 15 November 2023 that completed a US$100m investment into Kodal Mining UK Limited (KMUK) a company owned 51% by the Hainan group and 49% Kodal. Shipping of the dense media separation (DMS) processing plant and crushing circuit modules is progressing with minor delays. The civil construction contractor, Bambara Resources SARL, together with its key subcontractor, GZB Mali, part of the Gezhouba Group from China, has completed all major footings for the DMS plant in readiness to receive steelwork for erection. Bougouni remains on budget and on target for production by the end of 2024.
Light Science Technologies 2.8p £9.1m (LST.L)
The Group comprising three divisions: controlled environment agriculture (CEA); contract electronics manufacturing (CEM) and passive fire protection (PFP), announces its unaudited interim results for the six months ended 31 May 2024. Revenue was £5.2m, up 19.3% (H1 FY23: £4.4m) and loss before tax was reduced by 58.4% to £0.3m (H1 FY23: £0.8m in loss). Group cash at 31 May 2024 was £1.05m with additional undrawn funds availability of approximately £0.5m under debt facilities. The CEM division is benefiting from recent positioning to handle larger projects and the move away from Far East manufacturing and the Company expects to see increasing demand for local manufacturing in the UK. Its current committed forward order book stands at £4.3m. Whilst the CEM division has historically provided platform revenue and gross profit generation for the Group, the Board expects to see a re-balancing of divisional contributions through the second half of FY24 and beyond.
Minoan Group 0.625p £5.3m (MIN.L)
The resort development company presents its unaudited interim results for the six months ended 30 April 2024. The loss for the period was £601k (H1 FY22/23: £286k), the majority of which is accounted for by a one-off charge for the extension fee for DAGG on its loan renewal in November 2023. Discussions continue with the Public Welfare Ecclesiastical Foundation Panagia Akrotiriani (the Foundation) along with prospective development and other partners. Work on the reduction of liabilities is nearing completion and will be advised shortly. Process of recruiting a new and enlarged management team has commenced.
Polarean Imaging 1.775p £21.4m (POLX.L)
The commercial-stage medical device leader in advanced Magnetic Resonance Imaging (MRI) of lung function, announces it has entered into a trade-in agreement to exchange the University of Kansas Medical Center's (KUMC) existing research hyperpolariser for a new clinical-grade Xenon MRI hyperpolariser system to be provided by Polarean. The new equipment is being purchased as part of a device trade-in in which KUMC will trade in an earlier research hyperpolariser for the latest FDA-approved system, suitable for clinical scans. Polarean expects to install the new system later this year and will work closely with KUMC to advance clinical imaging, NIH-funded research, and pharmaceutical-sponsored trials.
Sylvania Platinum 55p £146.5m (SLP.L)
The platinum group metals (PGM) producer and developer with assets in South Africa, announces its results for the three months ended 30 June 2024. Sylvania Dump Operations (SDO) recorded $20.6m net revenue (Q3 FY24: $20.3m). Group EBITDA was $2.8m (Q3 FY24: $3.2m). Cash balance as at 30 June 2024 was $97.8m (31 March 2024: $101.3m). Thaba Joint Venture project is on schedule with all phases of construction of the chrome and PGM beneficiation plants progressing well. Thaba JV project aims to commence commissioning during March 2025.
SysGroup plc 34p £28.2m (SYS.L)
The technology partner for delivery and management of cloud, data and security services to power Artificial Intelligence (AI) and Machine Learning (ML) transformation, announces its audited results for the year ended 31 March 2024 (FY24). Revenue grew 5% to £22.7m (FY23: £21.6m) driven by growth in H2 in cybersecurity. Statutory loss before tax was £6.6m (FY23: a loss of £0.3), due to £1.8m exceptional costs including upgrade of the leadership team, and £3.7m impairment of historic acquisitions. The net debt was £3.4m as at 31 March 2024. The Group raised £10.6m net funds from a placing in June 2024, to fund an internal transformation project, strengthen the balance sheet to provide for ongoing working capital requirements and liquidity for acquisitions.
This document has been issued to you 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 such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own 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, they have not been independently verified and are not guaranteed 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, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such.
Any and all opinions expressed are current opinions as of the date appearing on 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, directors, 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 is sent to you as market commentary only. As market commentary this document does not constitute any of (i) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments for the purposes of the UK retained version of section B of annex I to Directive 2014/65/EU ("MIFID II Directive"); or (ii) investment research as defined in the UK retained version of article 36(1) of Commission Delegated Regulation 2017/565/EU made pursuant to the MIFID II Directive; or (iii) non-independent research (as such term is defined in the Financial Conduct Authority's Conduct of Business Sourcebook).
This document should not be relied upon as being an independent or impartial view of the subject matter. The individuals who prepared this document 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.
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.
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.