Small Cap Feast – 13 October 2020
Dish Of The Day:
YAMANA GOLD INC. (TSX:YRI; NYSE:AUY, LSE:AUY) has joined the Main Market (standard). It is already listed on the TSX and NYSE. Yamana offers “investors exposure to a pure-play senior gold producer with a high-quality asset portfolio in mining-friendly jurisdictions in the Americas “ Mkt cap US$5.9bn.
Off The Menu:
TEX Hldgs has left the Main Market (standard).
HML Holdings has left AIM following a cash offer.
What’s Cooking In The IPO Kitchen?
Meritwell II intends to list on the Specialist Funds Segment of the LSE raising up to £250m. The Placing will provide UK institutions with the opportunity to “swap” illiquid holdings which have become time and resource consuming holdings, at their bid price, in return for ordinary shares in the Company. Due 26 Oct.
Mailbox Reit PLC , a newly formed single asset company which owns the Mailbox , a large prime office-led mixed use property in Birmingham which has been independently valued at £179m, announced its intention to raise up to £62.5m MailBox REIT will apply for the Ordinary Shares be admitted to trading on the IPSX Prime segment of International Property Securities Exchange (IPSX ). IPSX is a new Regulated Investment Exchange regulated by the FCA and is the world’s first such exchange dedicated to the initial public offering and secondary market trading of companies owning single institutional grade real estate assets and multiple assets with commonality. Due 21 October.
Kaspi.kz, which operates the Kaspi.kz Super App, Kazakhstan’s most popular mobile app and the gateway to its market leading Payments, Marketplace and Fintech platforms intends to conduct a secondary GDR offer on the LSE. Timing tbc
Tirupati Graphite, the fully-integrated, cash generative, specialist graphite and graphene producer with operations in Madagascar and India, announced its potential intention to undertake an initial public offering on the LSE (standard listing). Timing tbc
Buffettology Smaller Companies Investment Trust— Buffettology is seeking to raise a minimum of £100m via an initial placing, an offer for subscription and an intermediaries offer on the Main Market. will be the Investment Manager to the Company, led by Keith Ashworth-Lord (CIO of Sanford Deland Asset Management Limited). Sanford DeLand manages approximately £1.4bn across two open ended funds, the CFP SDL UK Buffettology Fund and the Free Spirit® Fund. Due 29 October.
Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List. Timing tbc
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.
Sareum Holdings* 1.445p £47m (AIM:SAR)
FY Jun 20 results from the specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases. Entered a global licensing deal for its FLT3+Aurora kinase inhibitor programme targeting blood cancers with a China-based specialty pharmaceutical company
Phase 1/2 trials of SRA737 as a monotherapy and in combination with low dose gemcitabine were both reported to be complete by license holder, Sierra Oncology.
Excellent progress with their TYK2/JAK1 inhibitor programmes. Now advancing into toxicology studies needed to complete preparations for clinical trials.
A grant application has been submitted to UK Research and Innovation (UKRI) to fund preliminary laboratory studies investigating the potential of Sareum’s TYK2/JAK1 inhibitors to address the severe inflammatory responses (the “cytokine storm”) and potentially fatal respiratory symptoms of Covid-19 and other viral infections.
A response is expected by the end of October 2020 which, if successful, will enable initial studies to begin shortly thereafter.
Cash at bank as of 30 June 2020 was £1.80m
Panther Metals 9.225p £4.89m (LON:PALM)
Commission of a high-resolution Airborne Electromagnetic (“AEM”) and Magnetics geophysics survey over the Dotted Lake Property on the north limb of the Schreiber-Hemlo greenstone belt in Ontario, Canada. Survey will total a planned 1,024 line-km, flown at 50m spacing with 500m control lines, and orientated perpendicular to the dominant lithological strike direction.
Survey is expected to be flown late October / early November with processed results available for planning the 2021 programme of works over the winter break.
Dotted Lake Property is located 93km east of Panther’s Big Bear Gold Project, 18km north of the Barrick Hemlo Mine and 34km north-east of the Marathon Palladium Project where a proposed open pit mine for palladium, platinum, gold and copper is currently undergoing permitting and planning by Generation Mining.
NQ Minerals 625p £23.8m (AQSE:NQMI)
Production results and unaudited financial results for its wholly owned Hellyer Gold Mines Pty Ltd (“Hellyer”) for the quarter ending 30 September 2020 (Q3 2020).
Lead concentrate production was up 35% from the previous quarter (ending 30 June 2020) and up 78% compared to the same quarter last year.
Zinc concentrate production was up 8% from the previous quarter and up 38% compared to the same quarter last year.
Significantly, unaudited net revenue from Hellyer for the quarter was A$19.1m and gross profit realised for the quarter was A$10.7m. During the quarter, the Company realised positive commodity finalisation adjustments which increased net income before income taxes for the quarter at Hellyer to A$15.8m.
Universe Group 4.13p £10.8m (AIM:UNG)
The developer and supplier of retail management solutions, payment and loyalty systems, announced the appointment with immediate effect of Carmel Warren as interim Chief Financial Officer for an initial period of six months. Daryl Paton will remain with the Company until 1 November 2020 to ensure a smooth handover. Carmel will not join the Group’s board of directors.
Carmel is an experienced public company finance director, having most recently acted as CFO of D4t4 Solutions plc, the AIM quoted data analytics business, and prior to that was CFO of Celebrus Technologies Ltd, a customer intelligence software company. Carmel previously spent eleven years with ExxonMobil and qualified as an accountant with EY.
The process to appoint a permanent Chief Financial Officer is continuing and a further update will be provided in due course.
The design of the construction of section IV of tailing storage facility (TSF) at Sekisovskoye gold processing plant is nearing completion as of October 2020. The construction work is planned to start in Q2 2021 as soon as the required permits and approvals from state supervision authorities are obtained. As such, an additional storage facility will be built for stowing over 1.0 mln m3 of tailing solids, which should allow uninterruptible operation of the gold processing plant until 2024.
Furthermore, preliminary design work on the construction of section V of TSF has commenced. It is expected that this will be commissioned in 2023 which will ensure the continuity in operation of the gold processing plant after 2024.
Palace Capital 195.25p £90m (AIM:PCA)
The property investment company that has a diversified portfolio of UK commercial real estate in carefully selected locations outside of London, updated ahead of its interim results for the period ended 30 September 2020, which are expected to be announced on Tuesday 17 November 2020.
94% and 90% of rents collected for the March and June quarters, respectively.
70% of all rents due on the September quarter date collected, a higher percentage than at the equivalent stage in the previous two quarters with November and December monthly payments to come. · Cash reserves as at 30 September 2020 were £14.3 million with a further £5.0 million available from the revolving credit facility.
Eight further apartments sold since the year end at Hudson Quarter, York, with 36 now sold at an aggregate value of £9.6 million. · Concessions granted at Sol Northampton with Accor Hotels in return for a five-year lease extension until 2032 and with Gravity Fitness in return for removal of the break clause, securing lease to 2034.
Disposals of Meadowcourt, Sheffield for £1.25 million, 30% above book value, and Hyde Abbey House, Winchester sold post half year end for £1.46 million, 16% above book value.
Minimum dividend payments of 2.5p per quarter recommenced, with next payment due on 16 October 2020.
OnTheMarket 100p £71.84m (AIM:OTMP)
The majority agent-owned company which operates the OnTheMarket.com property portal, today announces its unaudited interim results for the six months ended 31 July 2020 · Revenue and ARPA up 28% and 15% respectively, despite COVID-19 related customer support discounts of £1.8m and the curtailment of contract conversion activity.
Group achieves profitability as a result of measures implemented to reduce costs and conserve cash. In particular, marketing expenditure was down 67% to £2.2m (H1 19/20: £6.6m). 1,512 new home developments listed following the launch of the new homes offering in September 2019. · As lockdown restrictions were effectively lifted, year-on-year visits in July 2020 increased 173% to 27.5m and average leads per advertiser increased 56% to 148.
Assuming the UK housing market remains open and active, the Group expects revenues and costs to increase from H1 20/21 levels in the second half year to 31 January 2021, as it invests to enhance service and increase value to customers. The Group expects to achieve a broadly breakeven adjusted operating profit position for the full financial year .
Actual Experience 100p £47.65m (AIM:ACT)
The analytics as a service company, announced that following the recent development of its new Human Experience Management (“HXM”) offerings for its partners, it has signed a 3-year extension of its framework agreement with Proquire, the procurement arm of Accenture plc. The new offerings have been added to the agreement and will be available for Accenture client engagements globally. Whilst the agreement does not represent a guaranteed revenue generation, the Board of Actual Experience believes that Accenture has the potential to become a significant Channel Partner.
The global immunodiagnostics group, today announces that, following its announcement on 6 October that Oncimmune is being funded by the UK Government to develop a COVID-19 biomarker panel, the Company has signed a commercial agreement with Cedars-Sinai, California, USA, to provide antibody profiling in COVID-19 samples as biomarkers for this disease. Cedars-Sinai is a world-leading medical research organisation serving more than 1 million people each year in over 40 locations, with more than 4,500 physicians and nurses and 1,500 research projects in progress.
Thor Mining 0.975p £14m (AIM:THR)
Completion of the third phase of gold geochemistry reconnaissance at the 100% owned Pilbara Goldfield tenements (E46/1262 and E46/1190) in Western Australia.
The program was designed to follow up previously reported success from stream sediment samples collected across the tenements, which defined a highly anomalous 13km long gold target zone, with gold values up to 256ppb (19PST 19F -AR25) and 130ppb (20PST 24F-BLEG);
The geochemical program focused on follow up stream sediment gold results, with sampling upstream toward potential source rock, with some additional reconnaissance sampling and one traverse sampled (sediment and rock chip) across the stratigraphy in the anomalous areas (Figure 1).
Sampling conducted primarily within the 13 km gold corridor (target zone) trending NW-SE along the mafic/ultramafic thrust faulted contact ).
The geochemical samples are currently in transit to the Perth laboratory, with assay results anticipated mid-November.
The close spaced airborne geophysical survey (airborne magnetics) flown over the full tenure as previously announced is now completed with data processing and modelling underway.
0203 764 2344
*A corporate client of Hybridan LLP
This document, which does not constitute research, has been issued 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 any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective 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, such information has not been independently verified and therefore it is not possible to confirm such information 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, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.
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).
Any and all opinions expressed are current as of the date appearing on this face of 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, 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 should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, 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.
Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.
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.
MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute 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 the MIFID II Regulation.
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.
If you would like to unsubscribe, please email email@example.com with “unsubscribe me”.