SP Angel Morning View: Risk sentiment pulls back on geopolitical tensions and concerns over Chinese property market

Capital Metals (CMET) - Low-capex, high-margin mineral sands project in Sri Lanka primed for development

Capital Metals has advanced its high-grade Eastern Minerals Project in Sri Lanka to a point where it is ready, subject to funding, for construction. With minimal construction capital ($48m WHIe), the project would be generating cashflow within 12 months, and cashflow-positive 12 months hence. Amid growing demand and restricted supplies of zircon, titanium dioxide, and garnet, we believe the high-margin Eastern Minerals Project is eminently fundable and will generate high returns for shareholders

WH Ireland: Capital Metals (CMET) - Ongoing developments despite the difficult backdrop

It is obviously a difficult time for Sri Lankans in general, but also for those companies who operate and who wish to operate in country. We point to the export revenues for the country in hard currency, the jobs on site and the economic magnification of any operation in the wider local (and regional) economy that the project will bring as compelling reasons why there should not be any further delays in permitting the Eastern Minerals project. It is a high-grade project (one of the highest gra

WH Ireland: Capital Metals (CMET) - Final batch of assays, consistent high grade

Capital today reports on the receipt of the second batch of auger assays results from the drilling in the south of its mineral sands licence in eastern Sri Lanka. The results from Komari and Urani North once again confirm the presence of high-grades which are above the reported resource grade of 17.6% THM (Total Heavy Minerals), mostly ilmenite, which is already one of the highest resource grades in the world.

WH Ireland: Capital Metals (CMET) - Updated development study for Eastern Minerals Project, Sri Lanka

Capital Metals today updates the market on the economics for the development of the Eastern Minerals Project in Sri Lanka – one of the world's highest grade mineral sands projects. The low capital cost of $37m to positive cashflow and $81m in total (which includes a 20% contingency) is to be spread over 4 years as Capital Metals brings the project into full production in four stages; from delivering a Heavy Mineral Concentrate (HMC) to expansion and mineral separation to sell separate mineral s

WH Ireland: Capital Metals (CMET) - High-grade assays, resource extension likely

Capital Metals today reports on the receipt of the first batch of auger assays results from the drilling in the south of its mineral sands licence in eastern Sri Lanka. The results from Komari and Ureni confirm the presence of high-grades which are in-line, to higher than the reported resource grade of 17.6% THM (Total Heavy Minerals), mostly ilmenite, which is already one of the highest resource grades in the world.

WH Ireland: Capital Metals (CMET) - Update: New exploration licence and update on the current state of play

Capital Metals today provide an update on the grant of a new exploration licence at the Eastern Minerals Project in Sri Lanka where a further 12km of strike length has been added which incorporates the Oluvil port; Capital intends to drill in this new licence later this year. Today's news follows the RNS last week (23.3.2022) where Capital provided an update on progress at the whole project which we view as high-grade, low capital and high-impact. Capital is currently expecting the following k

Capital Metals (CMET) - High-grade mineral sands in Sri Lanka close to development

Capital Metals (Capital) is developing the high-grade Eastern Minerals Project in Sri Lanka, producing ilmenite, rutile, zircon and garnet for sale. On nearly every measure, the project has superior resource metrics; we see it as fundable and generating high returns for shareholders. We also expect the resource to grow and give Capital options on expansion or mine life extension. The key catalyst, for us, was the acceptance of the Environmental Impact Assessment (EIA) on 23.11.2021, following wh

Small Cap Feast

Sky News reports that a surge in pandemic-fuelled activity by homebound traders is propelling AvaTrade towards a London stock market listing that could value it at up to £700m. Established in 2006, AvaTrade is one of a number of platforms - including CMC Markets, Plus500 and IG Group - which enable their customers to trade contracts for difference. PensionBee, the online pensions provider, with a mission to make pensions simple, so that everyone can look forward to a happy retirement, conside

Small Cap Feast

Parsley Box, the direct to consumer provider of ready meals to the 60+ demographic, recently announced its AIM IPO plans. Parsley Box provides ready meals, which are not required to be stored in a fridge or freezer, have a shelf life of up to six months and are cooked in minutes. The company reported revenue of £24.4m for the financial year ended 31 December 2020 (unaudited). Deal details TBC and admission is expected to occur late March/ early April 2021. ActiveOps, a UK-based leader in Man

The Tropical Tree Crop Sector of Sub-Saharan Africa

Sub-Saharan Africa has suitable conditions for the cultivation of the most important tropical ‘tree crops’ including Oil Palm, Natural Rubber, Coconuts, Cocoa and Bananas. Yet, with the exception of cocoa production, African production of these big tropical ‘tree crops’ is small relative to the output of the Asian producer nations: Indonesia & Malaysia in the case of palm oil, Thailand and Indonesia in respect of natural rubber, Indonesia and Philippines in respect of coconuts, and India, China

AIM Breakfast

COMPTOIR GROUP PLC (COM LN) | EQUATORIAL PALM OIL PLC (PAL LN) | FARON PHARMACEUTICALS OY (FARN LN) | FINNAUST MINING PLC (FAM LN) | FLOWGROUP PLC (FLOW LN) | PANTHEON RESOURCES PLC (PANR LN) | STATPRO GROUP PLC (SOG LN) | VIPERA PLC (VIP LN)

M.P. Evans - In search of the sustainable magic money tree

MP Evans is one of the most efficient producers of sustainable palm oil in Indonesia with a proven track record of developing valuable plantations and, more recently, buying plantations at excellent prices. The 2022 spike in the CPO price created a surge in FCF which has supported the execution of its development strategy, evidenced by the two acquisitions in 2023 and the commissioning of a sixth mill in February 2023. MP Evans is at the start of a ten-year cash flow window where maintenance cap

Morning Note – 25 April 2024

Greggs - Showing us how it's done

The second full year of Greggs’ five-year growth plan to double revenue by FY26 should be marked down as very successful, especially so given the challenging external environment. Unlike many consumer-facing companies, high selling price inflation was accompanied by volume growth, leading to good market share gains. The consumer is responding well to new initiatives to grow revenue in new dayparts and digital channels. Profitability was well-managed with better recovery of input cost inflation t

Premier Foods+ (PFD, House Stock, 139p) - Pension cash contributions suspended

LIBERUM: Genus: Time to go the whole hog?

Carr's Group - An enhanced value creation strategy

Carr’s Group has announced an updated strategy that offers the potential for value realisation and creation from a number of avenues. These include: value realisation of the Engineering Division; the ability to significantly reduce central costs; and longer-term value creation in the Agriculture Division as a focused business with recovery potential and a strategy to leverage its strong market positions for growth.

Wynnstay Group+ (WYN, House Stock, 370p) - AGM – FY24F unchanged

Hardman & Co Healthcare Index: 2023 – Capital demands dent performance

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (

Wynnstay Group+ (WYN, House Stock, 385p) - CEO to take leave of absence

BWMX: 1Q Preview: Moving to the Offensive; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, projections and $22.50 price target for Betterware de Mexico with the company announcing 1Q24 (March) results after the close on Thursday. We believe, with momentum returning at the Betterware division, JAFRA remaining on a new product and marketing focus, the United States market becoming a larger emphasis and BWMX continuing to offer a compelling (and secure) dividend yield of 8.5%, BWMX remains well positioned to reward investors on multiple levels, and we r

Nichols - Juicy profits and cash generation

NICL's FY23 results showed good progress made as the Packaged business continued to drive growth through product innovation and geographic expansion. Inflationary pressures were largely mitigated and the benefits from the restructuring of the Out of Home (OoH) business are starting to come through, leading to improved profitability. Free cash flow generation was very strong in the year, resulting in an improved net cash position of £67.0m (vs £56.3m at end-FY22). Given the high levels of cash on

Initial Equity Trading Comments - 20 March 2024

Cake Box Holdings+ (CBOX, House Stock at 161p) - Robust trading - a modest upgrade

Hybridan Small Cap Feast - 11 Jan 23

11 January 2023 @HybridanLLP Status of this Note and Disclaimer 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 object

FY19 in line but Middle East excise duty headwind

Nichols’s trading update signals an in-line FY19 outcome driven by UK market share gains and good international progress. The main news today is the recent 50% excise tax on non-carbonated drinks in Saudi Arabia/UAE. This is a headwind going into FY20 which at this juncture is extremely difficult to quantify given c.80% of in-country sales of Vimto in the Middle East are made during the one month of Ramadan. Our analysis shows a potential c.£2.5-£4m PBT hit. Given the uncertainty we prudently fa