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Avacta has successfully completed the bookbuild of a heavily oversubscribed Placing that was announced yesterday morning. As joint broker to the Company, Turner Pope was able to secure a good allocation in the Fundraising for its clients through its participation in the bookbuild and also through a direct subscription. The Fundraising has conditionally raised gross proceeds of, in aggregate, £48 million, before expenses, through the issue of 40 million New Ordinary Shares at an issue price of 120p/share, representing just a 4.4% discount to 30-day volume weighted average price (‘VWAP’).
Modern Water has announced receipt of its first patented AMBC wastewater plant order from Ion Exchange (India) Ltd. This follows MWG’s collaboration agreement with this large international specialist water and environment management company (announced RNS: 23 December 2019), and whose President, Ajay Popat, has also noted his company is “now ready to move to
the first installation as we deepen our working relationship with Modern Water”.
Avacta has announced its Preliminary Results for the 17-month period ending 31 December 2019. Its accounts reflect strong revenue growth and a healthy balance sheet; its statement highlights the establishment of multiple, major long-term growth opportunities. Significantly, post period-end the Group also announced two partnerships established to develop Affimer-based COVID-19 antigen tests, having also completed a £5.75 million fundraising that left the business well capitalised with a £10.5 million net cash position as at 30 April which capitalises the business through into 2022 on its current plans.
Following its signing of a three-year revenue-sharing manufacturing agency agreement (the ‘Agreement’) with Integumen plc (AIM:SKIN, ‘Integumen’) on 18th January 2020, and Modern Water’s subsequent confirmation of a Q1 2020 spike in demand for its water contamination detection consumables, the Company has today announced the commencement of shipping to meet both back-orders and growing demand for water contamination detection bacteria from existing clients.
Further to its signing of a US$£3.75m (£3.12m*) bacteria production agreement with Modern Water plc (AIM:MWG, ‘Modern Water’) back on 18 March 2020, Integumen has today announced the completion of its first batch of MWG reagent. Not surprisingly, the global COVID-19 public health crisis is resulting in a significant acceleration of customer demand for water contamination detection bacteria from existing clients, to which both companies have been able to rapidly respond.
Erris has today announced its successful raising of c,£330,000 (gross) through a placing of some 7.77m new ordinary shares at a price of 4.25p. This follows news last week of highly encouraging results for the Company’s recently optioned and highly prospective Loch Tay project (‘the Project’) in Scotland. Under an agreement with GreenOre Gold plc (‘GreenOre’) signed in December 2019, Erris will now undertake exploration work that is expected to result in it assuming both Operatorship and an 80% working interest in the asset.
Avacta has announced its second partnership to exploit the recently generated Affimer binders to the SARS-COV-2 virus in a high-throughput COVID-19 antigen test. This follows the Group’s stated intention to partner its SARS-COV-2 spike protein Affimer reagents with several select companies in order to support antigen test development on multiple diagnostic platforms. This is expected to contribute most effectively to the urgent need for rapid antigen tests to diagnose this coronavirus infection, such that it can be mass produced for rapid, professional screening of large populations and, potentially for self-testing by consumers themselves.
Baron today announced its final results and an update on its key areas of operation in Timor Leste, Peru and the UK for the year ended December 2019. In a separate release, the company has also announced a potentially exciting Work Sharing and Confidentiality Agreement with a large European E&P company in regard to UK Licence P2478 (Baron: 15%), located in the Inner Moray Firth (IMF) region of the North Sea.
Living up to the market’s best expectations, Deltex Medical delivered a pre-exceptional operating profit for its year to December 2019, while also ending the period with a reasonable cash cushion. The benefits of restructuring undertaken over the past 18 months, combined with a new strategy focussed on cost elimination and raised efficiencies, now place the Group on a springboard for grow both through the current situation and the post-Pandemic period. In this respect, it is significant that UK and US intensive care units have already started placing orders for its specialist haemodynamic monitoring technology, with a view to assisting clinicians select the optimal treatment regime for ventilated COVID-19 patients.
The technological collaboration, marketing and production agreement signed last month between Integumen (‘SKIN’) and Modern Water (‘MWG’) has already resulted in a significant joint product offering capable of uniquely addressing one of the world’s obvious current and post-Pandemic needs. To date, investment markets have almost exclusively focussed on the human race’s most immediate demand – that of COVID-19 detection, diagnostics and vaccination – and so has awarded a significant premium to the wider healthcare development sector in anticipation of its potential to deliver on these ambitions.
The Moroccan focused upstream oil and gas company has announced its audited final results for the year ended 31 December 2019. These highlight a period during which SOU’s Board successfully faced up to numerous challenges, as a result of which it effected a programme of structural cost reduction and explored options on monetising its Eastern Moroccan Portfolio, which presently remains ongoing. While the more recent COVID-19 Pandemic is not expected to significantly alter the anticipated schedule or broad economics of TE-5 Horst’s full field development, nearer-term it could possibly impose some delay on the Group’s micro-LNG (‘mLNG’) implementation.
After just four weeks, the Avacta/Cytiva Partnership has successfully generated several highly specific Affimer reagents for a COVID-19 antigen rapid test. Today’s news release perfectly reflects the exceptional value, advantages and opportunity the Group’s Affimer® technology is capable of creating. The need for antigen tests to diagnose this coronavirus infection that can be mass produced for rapid, professional screening of large populations, and for self-testing by consumers themselves, is crucial to limiting and tracking the spread of this disease.
Baron has executed a Shareholder’s Agreement (SHA) with SundaGas Resources Pte. Ltd (SundaGas) governing the operation of SundaGas (Timor-Leste Sahul) Pte. Ltd (SundaGas TLS) in which Baron now holds a 33.33% interest. SundaGas TLS’s sole asset is a 100% shareholding in SundaGas Banda Unipessoal Lda., which is the operator of the TL-SO-19-16 Production Sharing Contract (PSC), otherwise known as the ‘Chuditch’ PSC in Timor Leste. SundaGas Banda Unipessoal holds a 75% interest in Chuditch providing Baron with an indirect interest of 25% in the PSC.
Europa Metals is an exploration and development company focused on its wholly owned Toral Pb-Zn-Ag project in northern Spain. The Company received its second phase metallurgical test results from mining consultants, Wardell Armstrong (WAI). Locked cycle testing confirms saleable concentrate of lead (60%), zinc (59.1%) and silver (1,350ppm within Pb concentrate). The locked cycle tests also demonstrated good metal recoveries including: 83.7% recovery for lead, 77.7% recovery for zinc and 87.1% recovery for silver. These results represent improvements of concentrate grades compared with the first phase test work.
Following last year’s successful appraisal programme on the Mako gas field on the Duyung PSC in Indonesia (Coro: 15% non-operated interest), the operator of Duyung, Conrad Petroleum Ltd, has prepared significantly upgraded resource estimates for the Mako field. In particular, Conrad has increased the gross 2C resource estimate by 79% from 276 BCF to 493 BCF.
Alien Metals (UFO.L) is an exploration and development company with a diversified portfolio of assets including base metals, silver and iron ore projects in top mining jurisdictions. The Company announced today an update on its Donovan 2 copper-gold project in Mexico following results from a recently completed IP (Induced Polarisation) survey. Results have generated specific drill targets coincident with previous geophysical surveys and sampling results. Two robust drill targets, referred to as the Cerro de la Cruz and Los Alomos, lie within highly prospective geological corridor.
The Zika virus, a member of the Flaviviridae family that was originally spread by daytime-active Aedes mosquitoes, has already provided an ideal demonstration that Avacta’s Affimer platform can very quickly develop highly specific reagents in response to an outbreak of an infectious disease. The Group’s global technology partnership with Cytiva announced today now provides it with immediate access to a COVID-19 diagnostic, which is essential if a practical and commercial solution is to be promptly offered to governments and healthcare providers around the world.
Baron has relinquished its 15% interest in Licence P2470 located in the UK Inner Moray Firth (IMF) region. All work commitments on the block have been completed and the decision to relinquish the licence was effective from 31 March 2020. The company has retained its 15% in the more prospective Licence P2478 which contains the large Dunrobin prospect. There are no near-term drilling commitments on P2478, which we believe is positive given the current operational environment. We also note that given Baron’s predominant exposure to gas rather than oil, determined by its primary assets in Timor Leste and Peru, the company also provides limited exposure to the current volatility of global oil prices.
eEnergy Group has released an update detailing its progress in the Schools Sector while also considering the impact of the Coronavirus. Through its eLight subsidiary, eEnergy provides LaaS (‘Light-as-a-Service’) to businesses and schools to help them switch to LED lighting for a fixed monthly service fee, avoiding any upfront payments. While the lockdown imposed due to the COVID-19 pandemic has inevitably resulted in some deferrals of scheduled installations amongst its commercial SME/retail customers, the schools shutdown has alternatively prompted many to accelerate such fitment programmes during the time their premises are unoccupied.
Alien Metals (UFO.L) is an exploration and development company with a diversified portfolio of assets including base metals, silver and iron ore projects in top mining jurisdictions. The Company has recently changed its board and strategy, now focusing on acquisitions of quality assets in Tier 1 jurisdictions led by a strong technical team. Assets include the Brockman and Hancock Ranges, both high-grade iron ore projects and the high-grade Elizabeth Hill silver mine in the Pilbara region of Western Australia. In addition, Alien continues to progress its portfolio of silver and base metal projects in Mexico by identifying priority exploration targets within its 12 mining concessions.
Falanx has provided investors with a pre-close trading update, along with a statement regarding the impact from, and the Group’s commercial response to, the ongoing global COVID-19 crisis. Not only does this highlight improvement in its pre-Pandemic order intake, but also opportunity created through an anticipated long-term rise in home-based working.
Cora Gold (CORA.L), the exploration company focused on gold discoveries in West Africa, announced yesterday that it has commenced drilling within the highly prospective Madina Foulbé permit in eastern Senegal. The project lies within the prolific Kedougou-Kebieba Inlier (referred to as the Kenieba Window), which historically has seen over 50Moz of gold discovered. The Madina Foulbé project has two drill ready targets for follow up based on previous drill campaigns including intercepts of 3m grading 41.2g/t Au and 3m grading 7.86g/t Au.
Tower has announced an update in regard to both its Thali PSC (Production Sharing Contract) in Cameroon and its binding heads of terms (HoT) in respect to a farm-out of a 24.5% interest in the PSC to OilLR Pty Ltd as announced on 2 March 2020. In particular, the company has notified the Cameroon Ministry of Mines, Industry and Technological Development (MINMIDT) of an event of Force Majeure under the terms of the PSC during which the company’s obligations are temporarily suspended.
Further to its signing of a US$£3.75m (£3.12m*) bacteria production agreement with Modern Water plc (AIM:MWG, ‘Modern Water’) earlier this month, Integumen has announced that the global COVID-19 public health crisis has resulted in both a significant acceleration of anticipated customer demand and the Group’s planned response. In order to meet back-orders and growing demand for water contamination detection bacteria from existing customers across Spain, Italy and China, production of MWG’s monitoring reagent has commenced this week, some six weeks ahead of the originally planned production date.
Following its signing of a three-year revenue-sharing manufacturing agency agreement (the ‘Agreement’) with Integumen plc (AIM:SKIN, ‘Integumen’) on 18th January 2020, Modern Water has confirmed orders received for its water contamination detection consumables rose by 46% in Q1 2020 compared to Q1 2019. This demand spike, which came from existing customers across Spain, Italy and China, is thought to be significantly connected to the global COVID-19 public health crisis. Based on this and recognising that the pandemic still appears to be in a relatively early stage of its evolution across western zones, immediate demand could potentially significantly outstrip the initial production agreement signed between the two companies.
Inclusion of gas liquefaction within the CPF EIA approval, now enables the micro liquified natural gas (‘mLNG’) development planned as Phase 1 of the Concession field development plan to get underway. Phase 2, the Tendrara Gas Export Pipeline (‘TGEP’) led full field development, also continues to move forward having now formally secured its necessary land access approvals. Indeed, the last major hurdle is now just the tariff agreement with respect to this access. With the passing of this further significant milestone, negotiations continue with both the originally proposed purchaser (now of course on a non-exclusive basis) and other parties that had also expressed an interest what has become an increasingly de-risked asset.
Integumen has announced its signing of a three-year US$3.75m (£3.12m*) bacteria production agreement with Modern Water plc (AIM:MWG, ‘MWG’). This revenue sharing agency agreement (‘Agreement’) entails both the manufacturing and provision of logistical support for MWG’s monitoring reagent consumables. Not only does this news represent a further important move in the continuing, planned expansion of Integumen’s laboratories, but it also provides significant additional reassurance that the Group will deliver on the significant, four-fold revenue expansion already projected by its Board for the current year.
Modern Water, the global water crisis monitoring and solutions provider, has announced its signing of a three-year revenue sharing manufacturing agency agreement (the ‘Agreement’) with Integumen plc (AIM:SKIN, ‘Integumen’). This will provide manufacturing and logistical support for the Company’s supply of water monitoring reagent consumables.
The shares now appear to be incorrectly priced. Recent news flow has more than ‘knocked the stuffing’ out of Sound Energy (‘SOU’, ‘the Group’). The market took its failure to farm-down its Eastern Morocco Portfolio (‘the Portfolio’) badly, despite the reality that this was simply down to the (unnamed) purchaser’s inability to immediately satisfy the proposed transaction’s strict funding conditions. Indeed, the due diligence that the proposed purchaser undertook may be considered to have lowered the project risk for other parties that also expressed investment interest in the asset. While it works toward resolving this outstanding issue, the ending of exclusivity has opened the window for others now willing to enter the bidding.
Tower has received an updated reserves report from Oilfield International Limited (OIL) covering Tower’s Thali production sharing contract (PSC) in Cameroon. The document, termed the ‘2020 Reserves Report’ does not contain new technical information compared to the previous report prepared by OIL in November 2018. However, the 2020 report does include updated oil prices and costs reflecting the changes in the market over the intervening period.
eEnergy Group has announced the geographical expansion of its operations into Northern Ireland, while also providing shareholders with an operational update. Today’s news builds upon the Group’s established presence in both Eire and England. The Board sees significant opportunity in the region to capture a presently underdeveloped lighting-as-a-service (‘LaaS’) market opportunity, which it also considers offers potential to secure larger contract values. Being one of Europe’s leading operators in this segment of the developing energy efficiency industry, eEnergy is operating in an international marketplace that is projected to grow at a compound-average-growth-rate (‘CAGR’) of 16.6% over the next 7 years.
Europa Metals is an exploration and development company focused on its wholly owned Toral Pb-Zn-Ag project in northern Spain. The Company has released high-grade assay results from drill holes TOD-024 and TOD-025. Results from TOD-025 confirmed a thick, high-grade zone outside of the current indicated resource estimate and returned 7.7m grading 17.3% ZnEq., including 4.3m grading 25.6% ZnEq. This represents the highest-grade intercept that Europa has drilled to date and could significantly increase the current indicated resource. Additional mineralisation was confirmed in TOD-024 returning 1.7m grading 5.1% ZnEq, which also lies outside of the current resource estimate.
PowerHouse has confirmed that planning permission has been granted to Peel and Waste2Tricity for the first of its planned commercial distributed modular generation (‘DMG®’) waste-to-energy installations at the Protos Energy Park (‘Protos’) in Cheshire. This represents the passing of a key milestone for the Company. TPI considers the facility, which is designed to produce low levels of safe residues and requires a small operating footprint, thereby making it suitable for deployment at enterprise and community level, could potentially be commissioned early in 2021E.
Midatech Pharma has confirmed further expansion of its MTX110 diffuse intrinsic pontine glioma programme. It has received mandatory regulatory and ethical approval to commence a new exploratory Phase I study for diffuse midline glioma (‘DMG’) brain tumours, which will be conducted at Columbia University in New York. This follows last December’s news of a €2.6 million EU Grant for further clinical development of MTX110 for the treatment of DIPG, a related rare and fatal form of childhood brain cancer and a subset of DMG, from the European Innovation Council (‘EIC’). Selection by these two prestigious research institutions is seen as a major endorsement and validation of the innovation and potential value contained within this proposition, for which the efficacy component of its Phase II clinical trials is expected to be released shortly. As expected, yesterday’s general meeting saw all resolutions passed.
MWG has further extended its operations and market opportunity through the signing of a non-binding Heads of Terms (‘HOT’) agreement with the private extractions and chemicals company, Cellulac plc. Having recently strengthened its balance sheet and refreshed its Board through the appointment of a series of highly experienced and wellconnected individuals, this association now opens new target sales and distribution channels across the expanding global water market. Its participation in the Integumen-led ecowaterOS consortium, also recognises the urgent international need for an end-to-end water contamination detection and decontamination provider network, that offers the ability to provide customers with real-time monitoring solutions.
Application of data-management and AI capabilities to existing core technologies has identified a significant new market opportunity for Integumen and its partners. Rising awareness of the direct impact of climate change on systems vital to the international population’s health and wellbeing, the Group’s new ecowaterOS platform offers a potential game-changing solution for water monitoring, recovery, treatment and recycling. A consortium led by Rinocloud has successfully integrated water management technologies and systems to address and automate resolution of such challenges into an end-to-end solution that addresses community, regional and even continent-wide demands.
Having now strengthened its balance sheet and refreshed its Board through the appointment of a series of highly experienced and well-connected individuals, Modern Water is now poised to capture the obvious and growing global water market opportunity through cutting-edge technology focused on making the treatment and recycling of water more efficient. In light of its recent successful placing, negotiations over the potential sale of its Monitoring Division have been suspended pending the outcome of a review by the new Board. It has also confirmed action to significantly reduce overhead costs across the whole business which has now been undertaken. The results of this and MWG’s vision for capturing its business opportunity is expected to be reflected within its forthcoming release of financial results and statement for the year ending December 2019.
Cora Gold (CORA.L) is an exploration company focused on gold discoveries in West Africa. The Company has just released first assay results from the current drilling campaign on its 95% owned Sanankoro gold project in southern Mali. Drilling mainly targeted deeper oxide and sulphide extensions to the maiden pit constrained inferred resource of 5Mt grading 1.6g/t Au for 0.265Moz of contained gold. Initial results from the first 13 RC holes have been received and the best intercepts are: 29m grading 2.61g/t Au including 12m grading 3.89g/t Au (RC hole SC-241), 7m grading 4.2g/t Au including 3m grading 8.38g/t Au (RC hole SC-246), 18m grading 1.08g/t Au (RC hole SC-248) and 4m grading 1.68g/t Au (RC hole SC-250). These encouraging results as well as further successful assay results bode well for increased open pit resources. Further assay results are expected in the coming weeks.
Since Rose entered into a Letter of Intent (LOI) to acquire an initial 10% of Captiva Energy Holdings’ (Captiva) 89.5% working interest in the McCoy lease in the DenverJulesburg Basin in Colorado on 4 November 2019, several key milestones have now been reached. These include a lease amendment with the lessor of McCoy which allows for the drilling of two-mile lateral wells across the lease. In addition, Captiva will support lease operator Great Western Operating Company’s pending application for a wider 1,280 acre Drilling Space Unit (DSU or the ‘Margil’ DSU) which includes the McCoy lease.
Integumen has signed a commercial and AI partnership with Acumen Software of South Africa. This represents the Group’s first RAWTestTM AI and distribution agreement. It is seen providing access across multiple continents for its real-time AI water contamination monitoring system, through its integration with Acumen’s wellestablished mobile asset and management software platform for wastewater and water utilities that has been established over the past 12-years. Given that the industrial sector is a major global water polluter, with only 60% of waste receiving treatment before being physically disposed of into the environment, escalating pressures from international governments to rectify the situation prospectively creates a significant, long-term market opportunity.
Avacta announces its signing of a collaboration and license agreement with AffyXell Therapeutics. Coming just two weeks after establishing its joint venture with Daewoong Pharmaceutical, Avacta already appears to be ‘punching well above its weight’. The unique opportunity presented through combination of two world-class technologies, Avacta’s Affimer antibody mimetic platform and Daewoong’s proprietary technology for generation of ‘off-the-shelf’ allogeneic mesenchymal stem cells (‘MSC’) therapies, offers potential to create the next generation of stem cell therapies. This not only opens up a giant new, long-term market opportunity but significantly also, AffyXell is committed to fund all of Avacta’s related costs despite it retaining the commercial rights to the proteins in all unrelated fields.
Coro will no longer proceed with the acquisition of a 42.5% interest in the Bulu PSC offshore Indonesia. With the long stop date for the completion of the transaction having passed on 2 December 2019 without the requisite government approvals in place and several concerns identified by Coro in regard to the company’s partner and new requirements to the proposed development plan for the asset, Coro has elected to allow the Bulu acquisition agreement to lapse in accordance with the terms of the proposed transaction.
Highly encouraging results for Avacta’s TMAC programme. The Group’s first TMACTM drug conjugate molecule has demonstrated ability to out-perform Bavencio (avelumab) in an animal model. In vivo and pharmacokinetic data collected indicate superior efficacy which, together with ability to successfully target the warhead, provides initial proof-of-concept. As such, today’s news represents the passing of a key milestone with the very first TMAC tested. Given a peak sales projection of US$4bn/year for Bavencio, significant commercial interest that Avacta’s development programme has already attracted might now multiply still further.
A positive Trading Update. Detailing unaudited figures for a 17-month period in order to shift its financial year end to December, Avacta has reported a doubling of revenues compared with numbers delivered for the 12-months ended July 2018. Revenues were boosted by receipt of its first milestone payment from its partnership with LG Chem, along with significant growth within its Affimer® diagnostics business. Having also raised c.£9m gross proceeds from an equity placing and subscription last October, the Group presently sits on a good ‘cash cushion’ which is now being focussed on taking its first pre|CISION pro-drug, AVA6000, into the clinic during 2H’2020 while also forwarding its partnered programmes and licensing relationships for its Affimer® diagnostics reagents.
Commercial property owners and operators are waking up to opportunities being presented in the still relatively nascent Energy-Efficiency-as-a-Service sector (‘EEaaS’). An early mover with focus on the UK and Ireland, eEnergy Group plc’s (‘eEnergy’ or ‘the Group’) wholly owned eLight Group Holdings (‘eLight’) is one of Europe’s leading operators in the Lighting-as-a-Service (‘LaaS’) segment of the industry, a global marketplace projected to grow at a compound-average-growth-rate (‘CAGR’) of 16.6%1 over the next 7 years. A strong and growing contract pipeline with excellent cash conversion, provides Directors with confidence in the Group’s ability to deliver its first net profits for its year ended June 2021E, after which we expect it to throw off significant free cash.
Integumen has provided both a trading update and announced the signing of a cooperative alliance with the Shanghai-based Innocare Group. This MOU has been established to promote innovation and cooperation between research institutions developing cosmetics and skincare products. It will assist commercial enterprises in China seeking routes to regulatory compliance using Labskin and LabskinAI without the need for animal testing. Today’s trading update also provided unaudited figures for the year to end-December 2019 confirming, as expected, 12-months pro-forma revenues of just over £1m, representing almost a four-fold increase on the comparable period. This reflects the fact that skincare and personal product manufacturers continue to find themselves overwhelmed by excessive data and strict new EU, US and Chinese regulation, together with an urgent need to heighten clinical trial efficiencies.
Cora Gold (CORA.L) is an exploration company focused on gold discoveries in West Africa. The Company has just completed an initial Scoping Study on its 95% owned Sanankoro gold project in southern Mali. An open pit constrained (c.100m) inferred resource consists of 5.0Mt grading 1.6g/t Au for 0.265Moz of contained gold. Extensive shallow oxide-mineralisation augurs well for a standalone heap-leach operation. Assuming a gold price of US$1,400/oz, AISC (all-in-sustaining-costs) of US$942/oz and pre-production capex of US$20.6m the project returns a NPV(8%) of US$30.9m (US$24.2m post-tax) with an IRR of 84% (73% post-tax); based on an annual production of c.46koz. This generates c.US$19m in annual free cash flow. Although the current life of mine is only 3 years, we expect this to expand given that only 25% of the 40km mineralised strike length has been drilled to date
Erris Resources plc (Erris) announced today that it has successfully completed its due diligence on an option agreement signed with GreenOre Gold plc (previously announced on 9 December 2019) regarding the Loch Tay gold project in Perthshire, Scotland. As such, Erris will now proceed with exploration work to acquire 80% of Loch Tay. Erris can earn its 80% interest by defining a minimum inferred resource of 250koz of gold, to be verified by an Independent Competent Person, within four years. Loch Tay is located 43km from Scotgold Resources’ Cononish gold mine, which has a combined resource of 266koz grading 13.4g/t Au, including total reserves of 198koz grading 11.1g/t Au with first gold production expected in May 2020.
Europa Metals is an exploration and development company focused on its wholly owned Toral Pb-Zn-Agproject in northern Spain. The Company has recently recieveda preliminary independent metallurgical studyfrom mining consultants, Wardell Armstrong. Locked cycle testing confirms saleable concentrate of lead(57.5%), zinc (55.8%)and silver(1.5kg/t). The locked cycle tests also demonstrated good metal recoveries including: 84.3% recovery forlead, 70.7% recovery for zinc and 90.3% recovery forsilver. Toral has JORC (2012) compliant resource of 18Mt grading 7.4% ZnEq. (based on a 4% Zn cut-off grade including Pb credits) and 24g/t Ag, including an Indicated resource of 2.7Mt grading 8.9% Zn Eq.
A significant step forward for Avacta. Through a joint venture agreement announced yesterday with Daewoong Pharmaceutical, the Group has identified an ideal champion to help prove the opportunity its Affimer® technology presents in the area of cell and gene therapy. In combination with Daewoong’s stem cell technology and associated research, Affimer® technology holds potential to outperform existing treatments for immune-mediated diseases, such as rheumatoid arthritis, multiple sclerosis and type 1 diabetes, and to form the next generation of stem cell therapies. While extended time-schedules and high costing for such trials must be taken as read, the prospective value created for shareholders, should the joint venture and Avacta’s wholly owned in-house drug development be successful, will be exceptional.
Integumen Plc “Integumen” is seizing an opportunity presented by skin care and personal product manufacturers that find themselves overwhelmed by excessive data, strict new EU, US and Chinese regulations and the need to improve product claims while responding to consumer-led demands for an end to laboratory-based animal testing. Surging demand for its laboratory and data services has resulted in the Board reiterating guidance that anticipates afour-fold revenue increase for the year just ended being matched by a further, similar improvement in 2020. Significantly also, the incorporation of Rinocloud’s high margin data analytics and AI services offer potential for the Group to be generating positive monthly cash flows by the end of H1’2020E, with anticipated demand f rom global-scale manufacturers potentially even testing its newly expanded laboratory capacity before the year end.
All resolutions were duly passed at today’s General Meeting. Further to its announcement of 20th December, however, the Board again reminded shareholders that the Company’s working capital position remains very weak. Having now been provided with increased authorisation to issue shares on a non-pre-emptive basis, it went on to state that it is in advance negotiations with a number of parties and was hopeful that it would secure up to £100,000 of immediate short-term debt funding, which would enable it to continue trading. The terms and amount of any subsequent placing are yet to be determined and a further announcement will be made in due course.
Falanx has sold its serverless stream processing platform, Furnace (‘Furnace’), to a team led by Falanx’s Chief Strategy Officer and Founder, John Blamire. As part of the sale, John Blamire has resigned from the Board with immediate effect. Following the sale, Falanx will continue to benefit from Furnace technology through licensing and support agreements. As such, this transaction is seen benefitting shareholders through reduced Group cash expenditure while also ensuring they continue to participate materially from any increase in Furnace’s future value. Significantly, it frees Falanx to concentrate on its core operations which are now trading in their traditionally stronger second half.
Rinocloud Limited (‘Rinocloud’), Integumen’s wholly owned subsidiary, has signed a 3-year Framework Agreement with Parity Professionals Limited (‘Parity’), a subsidiary of Parity Group plc. This Agreement, which follows Heads of Terms to enter a multiyear Framework Agreement announced on 13th November, is for the supply and rollout of mobile enterprise resource, data management and business tool software services to clients ranging from the National Health Service (‘NHS’), Public Sector, Utilities, Housing Associations and Private Institutional companies. Within this, Integumen seeks opportunity to cross-sell intelligent data management and extraction of value-creating analysis with a focus on improving return on investment to Parity’s 150+ institutional clients.
In a placing and subscription led by Integumen’s broker Turner Pope, the Group has raised gross proceeds of £1.368 million (c.£1.245 million net) through the aggregate issuance of 91.25 million new shares at a price of 1.5p per share. Admission of the new shares is expected to be no later than the 16th December 2019. Funds raised will provide working capital and investment in laboratory space, new equipment and marketing, in response to a sharp increase in demand for Labskin services. Product development supported by successful incorporation of Rinocloud’s AI platform, in tandem with pressure for compliance with the EU’s medical device regulation (2017/745) by international skin product producers, has sufficiently improved visibility for management to reiterate its full year revenue guidance for both 2019 and 2020 at £1 million and £4 million respectively.
Midatech Pharma announces confirmation of a €2.6 million EU Grant for further clinical development of MTX110 for the treatment of Diffuse Intrinsic Pontine Glioma, a rare and fatal form of childhood brain cancer. Selection by the European Innovation Council (‘EIC’) is seen as a major endorsement and validation of the innovation and potential value contained within this proposition, for which the efficacy component of its Phase II clinical trials is expected to be released shortly.
Cora Gold (CORA.L) is an exploration company focused on gold discoveries in West Africa. The Company has just completed a JORC (2012) compliant maiden resource estimate on its Sanankoro gold project in southern Mali. The open pit constrained (115m depth) maiden inferred resource is 5Mt grading 1.6g/t Au for 0.265Moz of contained gold. Of this, 88% is derived from oxide material. This is just the first step in determining the overall potential of Sanankoro deposit, which currently has between 1 and 2Moz Exploration Target within 100m of surface grading between 1.0g/t and 1.3g/t Au. We note that shallow oxide mineralisation coupled with encouraging preliminary metallurgical test results (up to 97% recoveries) bodes well for a standalone operation at Sanankoro.
TomCo has raised gross proceeds of £925,000 by way of a placing of 142.3 million new shares at a price of 0.65p per share through its broker Turner Pope Investments (TPI). The company will use a significant proportion of the net proceeds of the placing to undertake a resources report and engineering study for a potential oil/tar sands opportunity across its leases within the Uintah Basin in Utah, USA. This project is anticipated to be expedited in tandem with Valkor LLC with which TomCo has signed a non-binding Memorandum of Understanding (MoU).
Coro has entered into a sale and purchase agreement with Zenith Energy Ltd (LSE: ZEN) for the proposed disposal of Coro’s entire portfolio of Italian assets for a total consideration of £3.9m payable in Zenith shares. The deal is subject to the approval of the Italian regulatory authority and Coro’s shareholders at a General Meeting of the company to be held on 20 December 2019. When completed, the divestment of the Italian assets will free up significant amounts of management time and future capital expenditure commitments enabling Coro to focus efforts entirely on its South East Asian expansion strategy.
Falanx reported further strong revenue growth for the six months ended September 2019, during which time the Group invested heavily in anticipation of capturing significant new business opportunities available across both the global cyber security and intelligence markets. While this resulted in some overall gross margin slippage for the period, the benefits of new product roll-out and a high level of repeat revenues are expected to be reaped during the Group’s traditionally stronger second half. With evidence of this already being delivered amid an expanding sales pipeline and gross margin recovery, the Board continues to focus on driving profitable top-line growth and further cost reduction as it targets cashflow breakeven.
Commercial property owners and operators are waking up to opportunities being presented in the still relatively nascent Energy-Efficiency-as-a-Service sector (‘EEaaS’). An early mover with focus on the UK and Ireland, eEnergy Group plc’s (‘eEnergy’ or ‘the Group’) wholly owned eLight Group Holdings (‘eLight’) is one of Europe’s leading operators in the Lighting-as-a-Service (‘LaaS’) segment of the industry, a global marketplace projected to grow at a compound-average-growth-rate (‘CAGR’) of 16.6%1 over the next 7 years.
W Resources (WRES.L) has reached an important milestone with commencement of commercial production of tungsten and tin concentrate from its flagship La Parrilla mine in southwest Spain. This means that La Parrilla has achieved stable operating plant performance. The Company is now on track to realise its T2 Phase target of 2Mtpa run of mine material and producing 2,700t of tungsten (WO3) concentrate.
Union Jack has raised £5.0m by way of a placing and subscription of 3,333.3 million new shares at a price of 0.15p per share. The net proceeds of the placing will be used to fund the company’s contribution to further appraisal drilling and reprocessing of new seismic data at West Newton (UJO: 16.665%). Union Jack will also utilise part of the placing proceeds to fund its share of an anticipated side-track well at Biscathorpe where the company holds a 22% working interest.
Rainbow Rare Earths (RBW.L) announced the latest results from its exploration and mine development programme on the Gakara project in Burundi. Assay results from two diamond core drill-holes in the Kiyenzi deposit reveal continuous mineralisation from shallow depths. Highlights include intersections of 13.87m grading 4.85% total rare earth oxides (TREO) and 11.64m grading 3.86% TREO. Additional drill cores totalling more than 1,000m have been sent for analysis in order to evaluate and generate an updated compliant mineral resource estimate. These results should give RBW additional mining flexibility as it continues to development the Gakara project.
Coro, which holds a 15% interest in the Duyung PSC, offshore Indonesia has successfully completed the Mako field appraisal programme. In particular, the Tambak-1 well has encountered 24 metres of high quality reservoir sandstones, confirming a common gas-water contact across the whole field, and a drill stem test (DST) has flowed dry gas at 11.4 mmcfpd, confirming the deliverability and commercial potential of the Mako field reservoir.
Integumen has announced successful results from its participation in a water research project that utilises Rinocloud Artificial Intelligence (‘AI’). The three-year development Remote Automated Water Test research project (‘RAWTest’), comprising a consortium partly funded by the Irish Environmental Protection Agency (EPA), anticipates increasingly global dependence on recycling and recovery of water supplies. As such, a regular, rapid and accurate means of wireless monitoring is urgently needed to ensure they are fit for human consumption. Rinocloud AI has demonstrated its ability to deliver exactly this, by remotely detecting E.coli contaminated water with 99.3% accuracy in just 3.37 seconds, thereby offering significant potential to improve global healthcare.
Integumen has signed a Heads of Terms with Parity Group plc (AIM: PTY) to enter a multi-year Framework Agreement for the supply of AI software across Parity’s NHS, Central Government and private institutional client base. This exciting news is augmented by a positive trading update from Integumen which states that the company expects 2020 revenue to be approximately £4m excluding any contribution from developments with Parity at this stage.
Coro, which holds a 15% interest in the Duyung PSC, offshore Indonesia has announced that the Tambak-1 well which spudded in early November 2019 has intersected the intra-Muda reservoir of the Mako gas field and a full suite of technical data has been recovered. Initial results are very positive, indicating a gross sandstone reservoir of approximately 25 metres, considerably thicker than the original Mako South-1 discovery well. As such, the management is confident that pre-drill 2C resource estimates of 276 BCF of gas could be enhanced by an additional 100 BCF, representing a very significant uplift in the potential value of the Mako field.
Following the drilling of the West Newton A-2 appraisal well on UK onshore licence PEDL183 in which Reabold holds an indirect interest of 39.3% through its 59.0% interest in operator Rathlin Energy, Rathlin has undertaken a detailed range of technical studies focusing on the Kirkham Abbey formation. Consequently, the operator has upgraded its estimated volumes of in-place hydrocarbons within the reservoir. Of particular interest is the conclusion that the dominant phase of the inplace volumes is oil rather than gas and that these volumes are indicated to be significantly greater than those assumed by the existing CPR produced prior to the drilling of West Newton A-2.
Rose has signed a binding Letter of Intent with Captiva Energy Holdings II LLC to acquire an initial 10% of Captiva’s 89.5% net working interest in the 317 acre McCoy lease located in the Denver-Julesburg (DJ) Basin in Colorado. This acquisition represents the initial stage of ownership in what may ultimately become a considerably larger Drilling Space Unit (DSU) to accommodate a multi-well drilling programme of two-mile horizontal wells targeting up to four reservoir formations. This deal is being expedited with a view to establishing early production and cash flow within the next 12 months.
Integumen has launched Rinodrive AI, an independent Artificial Intelligence platform for the company’s collaboration joint venture partners. Rinodrive is a standalone open source cloud-based ecosystem which Integumen is rolling out with its existing healthcare clients in addition to an increasing list of higher education institutions, an international financial advisory company and a major UK bank. Rinodrive is also being tested in government departments which could provide a potentially huge market for the company’s AI platform.
Europa Metals is an exploration and development company focused on its wholly owned Toral Pb-Zn-Ag project in northern Spain. The Company has updated its JORC (2012) compliant resource to 18Mt grading 7.4% Zn Eq (based on a 4% Zn cut-off grade including Pb credits) and 24g/t Ag, representing a 12% increase to the total resource tonnes. More importantly, Toral now has an Indicated resource of 2.7Mt grading 8.9% Zn Eq. Overall, the updated resource represents a 30% increase in total contained zinc to 0.83Mt. The updated resource model will be used by management to identify potential new drill targets both within and outside of the defined resource. In addition, the revised resource model will be reviewed alongside the metallurgical, geotechnical and hydrological results for inclusion in the PFS (Pre-Feasibility Study).
Recent operations on the Tambak-2 well on the Mako gas field in the Duyung PSC (Coro: 15%) offshore Indonesia focused on conducting a Drill Stem Test (DST) across the intra-Muda reservoir in order to assess gas flow rates. The operator reported that the DST was not successful as a consequence of formation damage in the reservoir. Nevertheless, the main objective of the Tambak-2 well, demonstrating primarily a continuous gas-bearing reservoir, has been achieved and Coro remains confident of an uplift in the contingent resource base for the field. Tambak-2 will now be plugged and abandoned, as was always planned, and the drilling rig will now move to the Tambak-1 well location.
With the assistance of the company’s joint broker Turner Pope, Avacta is raising gross proceeds of up to £9m through the issue of up to 59.8 million new shares (including 200,000 subscription shares) at a price of 15p per share. Admission of the new shares to AIM is subject primarily to a General Meeting which will be held on 4 November 2019. The net proceeds of the placing will be deployed as Avacta enters the clinic with its first programme and also to advance drug development partnerships and grow revenue and licensing relationships for the company’s Affimer® diagnostics reagents.
Kavango Resources (KAV.L) is an early stage exploration company focused on discovery of world-class copper, nickel, and platinum group mineral deposits in Botswana. The Company was formed by a team of geologists with a history of exploration success in Africa. Kavango’s strategy is to repeat past success through new discoveries of world-class deposits.
The Tambak-2 well on the Duyung PSC located offshore Indonesia, in which Coro holds a 15% interest, has reached a total depth of 503 metres. The coring programme, wireline logs and pressure surveys subsequently conducted have confirmed the well as a successful appraisal of the Mako gas field. In particular, the company believes that the quality of the reservoir implies that a significant proportion of 3C contingent resources could be converted into the 2C category enhancing substantially the commercial potential of the field.
Velocys has signed an agreement with Oxy Low Carbon Ventures LLC (OLCV), to capture CO2 emissions from Velocys’ planned biomass-to-fuels project located in Mississippi USA and store them securely in an underground geologic formation. The company outlines that the ability to transform its flagship facility into a net negative emitter of CO2 is highly advantageous from both an environmental and also a commercial standpoint.
Avacta has entered into an agreement with ADC Therapeutics SA (Lausanne CH) under which the parties will develop jointly Affimer drug conjugates combining Avacta’s Affimer® technology with ADC Therapeutics’ pyrrolobenzodiazepine (PBD) based warhead and linker technologies. This collaboration is expected to harness the benefits of Affimer proteins to selectively and efficiently target ADC Therapeutics’ PBD drugs to the sites of tumours with the intention of developing breakthrough oncology treatments.
Integumen has signed multi year agreements with two major international cosmetics companies for recurring LabskinAI services. These framework agreements are already being rolled out in the US, Asia and the EU markets and low six-figure aggregate payments have been received by the company. With Integumen also anticipating contract extensions with existing clients in the nearterm, the management is confident that group revenue will exceed £1.0m in the current financial year.
Coro’s participation in a fully funded two well drilling programme on the Duyung PSC located offshore Indonesia (Coro: 15% non operated interest) has commenced with the spudding of the Tambak-2 appraisal well. The well, which is expected to take approximately 33 days to drill, will appraise the southern region of the Mako field and has the potential to move up to 100 BCF of gross contingent resources from the 3C to the 2C category increasing further the commercial potential of the Mako field. We believe that this would also enhance the appeal of the field as a source of gas for the Singaporean market.
Tower has disclosed technical and commercial information to a major international oil company in respect of Tower’s Namibian exploration blocks. Preliminary discussions initiated by the major and held earlier this summer have addressed the potential of cooperating in respect of future exploration activity. Although these discussions are at a very early stage and may not lead to a formal agreement between the parties, they do serve as a reminder that in addition to the company’s more advanced appraisal and development activities in Cameroon, Tower also possesses significant exploration upside in Namibia as well as South Africa that could represent major upside to the current share price in the event that farm-out agreements in either region are expedited successfully.
Europa Metals is an exploration and development company focused on its wholly owned Toral Pb-Zn-Ag project in NW Spain. The Company has recently completed a drill programme with Toral’s high-grade core with the aim of collecting a bulk sample for metallurgical testwork as well as increasing confidence in the current JORC (2012) compliant inferred mineral resource estimate of 16Mt grading 3.9% Zn, 3.1% Pb and 24g/t Ag. Best intercepts included 13.1m grading 2.47% Zn Eq (TOD 023) and 6.1m grading 1.06% Zn Eq (TOD-022). Whilst the overall grade was lower than expected an additional mineralised zone was intersected in the hanging wall, 25m above the main contact zone. Drill hole TOD 023D intersected 10.5m grading 2.23% Zn Eq in the hanging wall zone. With these results, Europa’s consultants will now be able to upgrade the inferred resource to indicated category.
Hummingbird Resources (HUM.L) is a gold production, development and exploration company. The Group has two core gold projects, the relatively high-grade Yanfolila open-pit mine in Mali and the large (4.2Moz) undeveloped Dugbe gold project in Liberia. Yanfolila produced its first gold bar on time and on budget in December 2017. Following the recent installation of a second ball mill, full year guidance is set for 110-125koz. Pre production probable reserves of 710koz grading 3.14g/t Au, total resources of 1.8Moz and an additional 390koz of non compliant exploration offer mine life upside.
Over the last six months, Toople has experienced accelerated growth in customer acquisition numbers. We expect this to translate into increased sales over H2 and an improvement in margins as a function of increased orders for superfast fibre broadband in the product mix.
In the months of April, May and June 2019, Toople received over 900, 1,000 and 1,100 orders respectively. In particular, order numbers for May 2019 were three and half times the level achieved only 12 months previously. This momentum has continued in Q2 with strong growth in the traditionally seasonally affected period of July and August 2019 and Toople added a further 1,300 and 1,000 new customer orders respectively in these months.
Cora Gold (CORA.L) is an exploration company focused on gold discoveries in West Africa. The Company has just completed another successful round of drilling, confirming continuity of oxide gold mineralisation at Zone A, Zone B and Selin prospects within its Sanankoro gold project in southern Mali. Best intercepts include 46m grading 4.48g/t Au and 24m grading 2.83g/t Au. These results are very encouraging and support further drilling to define potential starter pits and sulphide mineralisation at depth. Shallow oxide mineralisation coupled with encouraging preliminary metallurgical test results (up to 97% recoveries) bodes well for standalone operation at Sanankoro. With a Scoping Study and and maiden resource estimate expected in Q4 19 Cora is a gold junior in the making.
We believe that Union Jack’s (UJO) interim results focus justifiably on the exciting drilling result at the West Newton A-2 appraisal well where an Extended Well Test (EWT) has been paused in order to optimise operations and revise the well test design to focus on the oil column when the test resumes. UJO and its partners in West Newton also intend to commission a revised CPR which could imply a significant upgrade to pre-drill resource estimates suggesting that the discovery has the potential to be the biggest UK onshore find since Wytch Farm in 1973.
With higher than expected flow rates from the Burnett 2B well on the Monroe Swell licence in California, in which Reabold has earned a 50% working interest, the company is currently increasing the capacity of the production facilities on site. With a concurrent programme to boost production from Burnett 2A likely to increase volumes further, the company is evaluating the potential to drill additional wells on Monroe Swell. Reabold is experiencing a similar situation on the West Brentwood licence (RBD: 50%) where strong output from wells VG-3 and VG-4 has accelerated plans to drill a third well; VG-5, in Q4 2019.
Falanx reported a strong increase in sales and a reduction in underlying EBITDA losses in the year to March 2019 driven by the integration of acquisitions completed in 2018 and increased levels of monthly recurring revenue. Against a market backdrop of a rapidly growing cyber security market, the company is witnessing continued growth in the current year buoyed by a growing sales pipeline.
In Q4 2019, Coro will participate in a two well drilling programme on the Duyung PSC located in the West Natuna Basin offshore Indonesia (Coro: 15% non operated interest). The operator will focus on the central and southern regions of the Mako gas field appraising 2C contingent resources of at least 276 BCF and targeting an additional 200-300 BCF of prospective resources in a deeper gas exploration play. Mobilisation of the Singapore-based Asian Endeavour 1 jack-up rig is scheduled for late September and the back-to-back drilling programme is then expected to last until the end of November/early December 2019.
The acquisition of RinoCloud in April 2019 and recurring revenue from higher margin software services has reduced EBITDA losses compared to the previous period. Operationally, the Labskin business has also added a raft of new contracts including 4 blue-chip clients from the US and EU and six CBD (cannabidiol) test contracts with more in the pipeline. With the wider reorganisation of the company completed prior to the period end, we anticipate that the full impact of the operational and financial progress outlined in these results will be seen starkly in H2 and beyond.
Since the beginning of 2019, Reabold has gained major exposure to the exciting West Newton discovery, potentially the biggest onshore UK gas discovery since 1973, while in the US; the company has drilled two wells apiece on the West Brentwood and Monroe Swell fields providing an ongoing 50% share of revenue from each field. Looking ahead, the appraisal programme on Iecea Mare in Romania provides major near term drilling exposure and the likelihood of an appraisal well on the Corallian operated Curlew-A prospect in H1 2020 has the potential to significantly augment Reabold’s UK business.
In conjunction with the company’s attendance at the Microbiome AI Conference currently taking place in San Diego, California, Integumen has announced that its Labskin business has achieved the successful multiple cloning of human volunteers. This is a highly significant breakthrough for the company as it enables multiple skincare products to be tested simultaneously on the same subject without the attendance of the original human volunteer. This development is likely to reduce substantially product development time and clinical errors as well as lowering recruitment, supervision and testing costs for subsequent product testing programmes.
Initial testing at the West Newton A-2 well has indicated a substantial accumulation of oil and gas rather than solely a gas discovery as originally anticipated. Early analysis indicates a significant hydrocarbon column of 65 metres comprising a gross oil column of 45 metres underlying a gross gas column of 20 metres. The operator, Rathlin Energy (with a 66.67% interest), has paused the extended well test (EWT) in order to optimise its operations and will revise the well test design to focus on the oil column going forward. Reabold holds a 24% economic interest in West Newton through its 36% interest in Rathlin.
W Resources (WRES) is currently focused on near term production from its wholly owned La Parrilla tungsten and tin mine located in southwest Spain. The Company is in the final construction stage of the new large-scale concentrator plant and has already commissioned the new crusher and jig plants. The newly commissioned crusher and jig plants are now operating at near design capacity. As such, we expect the Company will be able to ramp-up production during Q3 2019.
Since the beginning of 2019, Reabold has gained major exposure to the exciting West Newton discovery, potentially the biggest onshore UK gas discovery since 1973, while in the US; the company has drilled two wells apiece on the West Brentwood and Monroe Swell fields providing an ongoing 50% share of revenue from each field. Looking ahead, the appraisal programme on Iecea Mare in Romania provides major near term drilling exposure and the likelihood of an appraisal well on the Corallian operated Curlew-A prospect in H1 2020 has the potential to significantly augment Reabold’s UK business.
Primorus has acquired a diverse portfolio of direct and indirect interests in a range
of companies in the natural resources, leisure, corporate services and brand licensing sectors. Operating a clear investment strategy, Primorus is typically a long term investor and uses several instruments to finance its investments including cash and shares while maintaining the capacity to issue debt securities or borrow to complete an investment. Primorus has established a track record of successful divestments and although the market for IPOs is currently challenging, Primorus notes that it remains underserved and we anticipate that the company will seek to crystallise the value of several of its investments, predominantly through the IPO channel, within the next 12-18 months.
Since the beginning of the current year, Integumen has delivered a wide range of commercial and corporate milestones. These have included disposing of underperforming subsidiaries and the reduction of group indebtedness, the acquisition of RinoCloud to augment the growing Labskin business, new blue-chip customer agreements, significant expansion of facilities in York and Ireland and the appointment of key personnel.
Highlands Natural Resources (HNR) is a diversified resources company with a broad portfolio of activities. The group’s core assets are located in Colorado and include a vertically integrated cannabidiol (CBD) products business and a 7.5% carried working interest in the East Denver Project, a producing oil and gas field. These businesses represent the foundations of HNR’s strategy to assemble a portfolio of projects whereby up to 80% of its assets generate sustainable revenue streams, complemented by more speculative projects which offer the potential for longer term capital appreciation.
Reabold is making solid progress across its key areas of activity in Romania, the US and the UK. In particular, rig mobilisation to drill the Iecea Mare-1 appraisal well in Romania is expected to commence imminently. In California, the VG-4 well on the West Brentwood field has been placed on permanent production and at the Monroe Swell field, the operator is poised to re-enter the Burnett 2A and 2B wells to implement clean-up activities and restore the wells to initial production rates. In the UK, the results of a rig site survey for the Curlew-A prospect is also expected to be completed by the end of the week.
Integumen has expanded its wound care business, LifeScienceHub Ltd (Wound pHase), through the extension of its technology licensing agreement with Cellulac plc, a company in which Integumen holds a 9.35% interest. This new remit will include the refinement of medical grade cannabidiol (CBD) derived from hemp for the development of CBD-infused wound dressings. This enhanced agreement will be in collaboration with the Department of Chemical Sciences at the University of Limerick and the Irish government supported body; the Research Centre for Resource Efficiency (tcbb RRSOURCE).
Integumen has signed new open-ended agreements with two of the world’s Top-10 cosmetic companies for initial testing on multiple ingredients and products within its clients’ portfolios. The company has also announced that LabskinAI has completed Beta testing and has fully transitioned from a product sale only company to a virtual and physical test platform for new products.
Coro has renegotiated the terms of the proposed acquisition of a 42.5% interest in the Bulu Production Sharing Contract (PSC) located offshore East Java in Indonesia. The Bulu PSC contains the Lengo gas field estimated to contain gross certified recoverable gas resources of 359 BCF.
Egdon Resources, the operator of UK onshore licence PEDL253, in which Union Jack holds a 22% interest, has stated that further analysis of the results of the Biscathorpe-2 appraisal well confirms the likely presence of a 35 metre column of good quality oil in the Dinantian Limestone interval. This is coupled with elevated gas readings and oil shows within the well which indicates that a working hydrocarbon system exists within the PEDL253 licence area.
Europa Metals is an exploration and development company focused on its wholly owned Toral Pb-Zn project in NW Spain. The company is currently drilling Toral’s high-grade core with the aim of collecting a bulk sample for metallurgical testwork as well as increasing confidence in the current JORC (2012) compliant inferred mineral resource estimate of 16Mt grading 3.9% Zn, 3.1% Pb and 24g/t Ag. Currently trading on an in-situ resource multiple (US$/t) of just 1.5x, the stock is significantly undervalued compared with our peer group multiple of 24.8x. As such, we value Europa at 0.095p per share which is a simple average between our DCF derived (0.13p per share) and our peer based (0.06p per share) relative in-situ valuation. Our blended valuation offers significant upside to the current share price.
As a function of the restructuring of the company since the end of 2018, Integumen has delivered a nine fold increase in revenue in H1 2019. The company has also transformed the balance sheet with the disposal of underperforming subsidiaries, the removal of outstanding debt and the acquisition of RinoCloud to augment Integumen’s Labskin business. With a successful fundraising of £2.75m also completed in April 2019 providing significant working capital, we believe that Integumen is very well placed for continued sales growth in H2 2019.
Falanx has been active on the corporate front during 2019. Following a successful £4.16m fund raising at the end of 2018, where the company attracted significant institutional support to the shareholder base, the company has also strengthened both the board and its team of advisers as it moves into its next phase of development. At the end of March it announced further growth in its third quarter and that its cash balances remained strong and were able to support its next phase of growth.
Following the earlier distribution of the Union Jack Oil Research Note, we identified an error regarding the percentage holding of the Keddington oilfield. Please be aware that the interest held by Union Jack in the Keddington oilfield is 20% and not 10% as was previously stated.
Preliminary data from the West Newton appraisal well suggests that the discovery is at least as big as the pre-drill estimate of 189 BCF of gas. This implies that West Newton could be the largest onshore UK gas field discovered since 1973, assuming that subsequent testing confirms the scale of the resource. Reabold holds an indirect interest of 24.7% through its 37.08% interest in the operator, Rathlin Energy (UK) Limited.
Po Valley Energy Limited (PVE) is an ASX-listed oil and gas development and exploration company with a diverse portfolio of assets in Northern Italy. The company possesses preliminary approval for two key development assets, namely the Selva Malvezzi licence which contains the onshore Selva gas field, anticipated to be on production in 2020, and the Teodorico offshore gas discovery for which development plans are well advanced for the commencement of production in 2023.
Avacta has selected the Affimer molecule, AVA004, as its clinical development candidate for first-time-in human clinical trials on the Affimer platform. This represents an important milestone for the company and confirms that Avacta is on track to submit an IND/CTA application for an Affimer PD L1 inhibitor in the US and European markets by the end of 2020.
Avacta is planning to submit an IND/CTA application in early 2020 to test the TMAC™ linker in a Phase I study in patients with selected tumours. The IND (Investigational New Drug) submission relates to the US application process while the CTA (Clinical Trial Application) applies to the European market. This is good news for the company as Avacta is in a position to test this critical TMAC linker in humans early in 2020, well ahead of its original plans.
Labskin AI has entered into testing agreements with three exciting new clients. In aggregate, these contracts are worth approximately £290,000 with the value of all contract revenue expected to fall into the current year. In order to accommodate these agreements and anticipated new business, the company is also increasing its Labskin laboratory capacity by 50%. We believe that this latest news validates both Integumen’s strategy to focus on larger contracts from Labskin AI services and also the company’s expertise in Cannabidiol (CBD) based product testing.
Midatech is focused on the research and development (R&D) of medicines for rare cancers. Through its portfolio of three proprietary drug delivery technology platforms, in tandem with a highly specialised team of scientists located in the UK and Spain, the company is developing novel drug delivery solutions to improve existing therapies and develop new treatments for a range of lethal diseases. Midatech focuses on making existing medicines better, using its proprietary technologies.
Integumen is a vertically integrated business focused on the group’s core Labskin AI technology platform. Collaborations with a wide range of partners in the pharmaceutical and cosmetic products sectors, among many others, enable Labskin’s clients to test consumer products on acne, eczema, psoriasis and dandruff populated skin under real-world conditions, viewing the results in real-time.
Tower is in the final stages of planning the NJOM3 appraisal well on the Njonjifield (Tower: 100%), located offshore Cameroon. NJOM3 is planned to be drilled to a total depth of 1,100m, probing at least three reservoirs zones identified by the NJOM1B and NJOM2 discovery wells. NJOM3 is designed to confirm the reservoir thickness on the Njonji field, supplement existing well data and evaluate additional formations that could provide valuable resource upside.
Oil production from the VG-4 well at the West Brentwood field in California (Reabold 50%) has commenced at an initially constrained rate as a consequence of significant volumes of associated gas. However, a tie-in to the local gas pipeline is underway and when completed, daily volumes of both oil and gas can be increased significantly providing a significant increase in revenue to the company.
Coro’s strategy to become a mid-tier South East Asian focused E&P company has accelerated with the news that the company has completed the cash and shares payments amounting to a total consideration of US$4.8m to acquire a 15% interest in the Duyung PSC offshore Indonesia. Additional to this, Coro has also provided a further US$10.5 contribution to the operator’s 2019 drilling campaign on the licence.
Avacta’s interim results demonstrate that the company is making solid progress with its in-house therapeutic programmes and first-in-man clinical data for its Affimer therapeutic platform is expected in late 2020. This is underpinned by the company’s recent commercial agreements with LG Chem Life Sciences and Tufts University Medical School, among several others, which have the potential to deliver long term revenue growth to the company.
Catenae Innovation is a provider of digital media and technology focused on Distributed Ledger Technology or ‘blockchain’ solutions. The company has developed a portfolio of products and services which have the potential to provide innovative solutions and commercial advantage to Catenae’s growing client base.
W Resources has announced that the jig and mill for its flagship La Parrilla tungsten-tin project are on schedule for mechanical completion in the current
month and the majority of equipment for the company’s new concentrator is now on site. With completion of these key phases of development imminent and
most other infrastructure work complete, we expect that the company will be able to ramp-up production significantly in Q2 2019.