Ultra Electronics (ULE LN, £1.4bn) Q3 19 trading update confirms trading in line with expectations reporting “good order book development” since H1 results. | Tyman (TYMN LN, £405m) trading update expects revenue & adj. op profit to be “in line with current market expectations”; European & UK markets have weakened since H1, North America “broadly flat with no clear signs of a return” | Ceres Power (CWR LN, £348m) announces successful development of its first zero-emission combined heat & power system, designed exclusively for hydrogen use
Companies: ULE TYMN CWR
Bracken Trading — The Group undertakes its main trade of lending as well as electricity generation through the operation of two solar farms. Admission on the 09/09/2019
WORLD HIGH LIFE—The Investment Vehicle is to identify investment opportunities and acquisitions in legal Medicinal Cannabis, Hemp and CBD wellness sectors. The Company has raised £2,398,309 through three issues of Ordinary Shares to private subscribers.
Companies: LSAI MCL ALS CWR ALU KIBO IHC BOO EVG ZAM
Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m.
Uniphar, a diversified healthcare services business with a workforce of over 2,000, is looking to join AIM. Raising EUR135m with market cap on admission of EUR309.6m, expected 17 July 2019.
Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.
Companies: TYMN MNO LOGP AMO VLS LWRF CWR CGNR GMD ACC
ReAssure Group plc - The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market.
Voyager AIR The Com pany w ill focus on the acquisition, leasing and m anagement of prim arily widebody aircraft, w ith asset management services to be provided by Amedeo Limited he IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m·
Uniphar, a diversified healthcare services business w ith a workforce of over 2,000, is looking to join AIM. Raise TBC, expected mid-July 2019
Companies: CPT RENX RGO TMT ADT RDT RGM IPEL 9537 CWR
Since hitting a high of 207p in September last year the shares have fallen back to c. 145p, a decline of c. 30%. This compares against declines in the FTSE All-share and UK General Diversified Industrials of c. 3%. Even against a more volatile green/clean tech comp set Ceres shares have underperformed YTD, despite the strong funding position and major commercial developments of last year. The current market capitalisation less estimated net cash values the business as at just c. £150m. This under values a business that raised c. £75m over the last twelve months from commercial customers, that took significant equity stakes, and equity investors. The cash position on the balance sheet is estimated to be enough to fund the development of the business through to commercialisation. There are very few disruptive technology businesses with this level of strength and visibility in its funding position. In unison with the commercial progress, financially the business has seen an improvement with the trading update in early December leading to revenue upgrades on the back of the Bosch and Weichai agreements.
Companies: Ceres Power
Further to Tuesday’s meaningful update on Weichai, Ceres has provided positive guidance ahead of its H1/FY2019 end. Management anticipates revenue to be at least £7m for the 6 months to 31 December 2018, an increase of 125% over the comparative period. As a result, FY revenue is expected to more than double to £15m, an uplift of £3m to our current forecasts (profit detail below). Similarly, in FY2020E we conservatively anticipate revenue to be £1m higher than our previous forecasts. Underpinning this, Ceres has completed two significant milestones with its new partners, Robert Bosch and Weichai, over the past week, with details discussed below. The Company is also noted to be progressing well with all other OEM partners, with further details expected in due course. Ceres has undergone substantial change over the past twelve months, from both a commercial and financial standpoint. The balance sheet is strong, with c.£70m net cash forecast at FY2019 end following recent equity investments, and we continue to believe that this can support Ceres through to profitability.
Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer TBC. Due 18 Dec. Mkt Cap A$64m.
Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is investigating the possibility of AIM admission. The Company is proposing to raise up to £2.25 million before the end of December, conditional on Admission.
Manolete Partners—leading UK insolvency litigation financing business looking to join AIM raising £16.3m as a placing and £13.1 realised by the selling shareholder at 175p. Market cap £76.3m, expected 14 December
Titon holdings—international manufacturer and supplier of ventilation systems and window and door hardware. No capital raise. Due 10 Dec. Mkt cap c.£22m.
Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected early December.
Companies: DIA GHT CWR EVE BOO BOKU VELA BBB QIL CTEA
Ceres has confirmed that the second tranche of the equity investment from Weichai Power (Weichai) is being made as planned for £28.0m. This takes Weichai’s equity holding up to 20% post a cumulative c. £48.0m investment. The second part of the investment has been triggered by Ceres and Weichai agreeing Joint Venture and License agreements as outlined at the time of the initial Joint Development Agreement (JDA) announced earlier in the year (16 May 2018). Alongside this, today’s JDA outlines the long-term commercial, strategic and financial relationship between the two companies, worth up to £9m to Ceres, and marking the end of a constructive year. The number of JDA OEM partners has increased to six with Weichai and Bosch announced, in line with management’s strategy, and both have made significant strategic equity investments. When combined with c.£20m from existing and new institutional equity investors, gross proceeds raised in the year will be more than £70.0m, leaving the business in a strong financial position. Forecasts are unchanged on today’s announcement, as the full Weichai investment had been accounted for at the time of the initial JDA announcement.
Ceres’ FY2018 results confirm a year of demonstrable strategic headway. The Company has made excellent commercial strides, establishing partnerships with Weichai Power and Bosch, alongside progressing with four existing major OEMs. Revenue and other income for the year grew by 71% to £7m, while Ceres’ contracted order book has grown materially from £3m to £30m. Post year end, the balance sheet has been significantly strengthened via a c.£20m institutional fund raise and a combined £29m of investments from Bosch and Weichai. A continued focus on technical improvement has seen the release of Ceres’ new V5 technology, while its 5kW stack development is well underway, alongside other multi-kW systems. The Board has expressed strong long-term confidence, and the focus remains on securing licence agreements for SteelCell® with Ceres’ six OEM clients within its key target sectors of automotive, data centres and commercial CHP applications. The shorter-term priority is completing the joint venture and licencing agreement with Weichai that will trigger its second equity investment.
Summerway Capital investing company established to acquire companies or businesses which the directors of the Company
believe have the potential for strategic, operational and performance improvement so as to create shareholder value. Offer TBC,
market cap TBC expected 19 October
Admission is being sought as a result of the proposed RTO of Cambian Group plc following completion of the acquisition by
CareTech a leading provider of specialist social care services, supporting adults and children with a wide range of complex
needs. No raise, market cap TBC expected 19 October.
PetroTal (TAL.TO) - The exploration and production company focused on oil assets in Peru is seeking a secondary AIM
quotation before the end of 2018.
Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22
kilometres south of Hannover in Germany. Seeking £10m raise. Due early Oct
Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR
growth of 26.7% in the last three years to £47.5m. Due Mid October 2018. EBITDA Profitable. Offer TBA
Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber
security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it
were to proceed, would likely take place over the next few months.
Companies: PMI OPTI EDL CTP BCN CWR ASO WHR AAZ MMX
In line with the Board’s announced strategy, Ceres Power has today announced that it is investing c. £7.0m in a new manufacturing facility in Redhill, Surrey. The new facility is in close proximity, c.20miles, of the existing Horsham office that will remain the Group’s Headquarters and also the Technical Centre. It is estimated that initial production at Redhill will supply the equivalent to 2 MW of fuel cells per annum increasing to 10 MW when fully operational. The new manufacturing base will fulfil three strategic priorities of meeting existing demand from partners in the development phase, initial commercial launch and proof of concept in terms of large scale manufacturing. No change to forecasts on today’s announcement, capex assumptions relating to the new facility and been included in estimates previously (21st August 2018). We also highlight last Friday’s announcement that Weichai had increased its holding to 10%, in line with its intentions.
Arc Minerals* (ARCM LN) STRONG BUY – Kalaba increasingly looking like a significant cobalt, copper discovery | Birimian Limited (BGS AU) Price A$0.25, Mkt Cap A$58.4m – Presentation on Goulamina project | Kodal Minerals* (KOD LN) Price 0.15, Mkt Cap 11.1m | Ceres Power Holdings (CWR LN) Price 199p, Mkt Cap £269m - Ceres announces £7m investment for construction of UK plant | IronRidge Resources* (IRR LN) 22p, Mkt Cap £61m – Ewoya lithium project drilling results | KEFI Minerals* (KEFI LN) 1.9p, Mkt Cap £11m – Tulu Kapi project resettlement programme schedule
Companies: ARCM KOD CWR IRR KEFI
Post the Bosch strategic investment on the 21st August we are increasing our forecasts, and price target to 255p and retain Buy rating. Our increased confidence is driven by growing commercial interest in their technology.
Today’s strategic collaboration and licence agreements with Bosch is a very meaningful milestone for Ceres and its SteelCell® technology. Previously an unnamed OEM, the agreements will see both parties further develop Ceres’ fuel cell technology, establish small-volume production, and longer term scale up and mass-production capability. This targets multiple applications Ceres Powerin multi-kW stacks, particularly for use in distributed power. Associated long-term revenue is expected to be material as licence royalties are achieved. Ceres will initially receive c.£20m over the next two years, through technology transfer and joint development work. In addition, Bosch will make a c.£9m equity investment that we believe significantly de-risks the opportunity and brings a high-quality global OEM alongside management’s aspirations. We have updated our P&L and cash flow forecasts in this note on today’s news flow and other recent events. The balance sheet has been greatly strengthened, and we forecast Ceres to be c.£67m net cash by FY2019E end, while the after-tax loss is expected to materially reduce.
Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Offer TBA. Due late Aug.
Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in
South Africa and exploration assets in West Africa
Companies: PEN COST HSW ZOE TRCS OCI TGP CWR VEC
Research Tree provides access to ongoing research coverage, media content and regulatory news on Ceres Power.
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A number of REITs have the ability to thrive in current market conditions and thereafter. Not only do they hold assets that will remain in strong demand, but they have focus and transparency. The leases and underlying rents are structured in a manner to provide long visibility, growth and security. Hardman & Co defined an investment universe of REITs that we considered provided security and “safer harbours”. We introduced this universe with our report published in March 2019: “Secure income” REITs – Safe Harbour Available. Here, we take forward the investment case and story. We point to six REITs, in particular, where we believe the risk/reward is the most attractive.
Companies: AGY ARBB ARIX BUR CMH CLIG DNL HAYD NSF PCA PIN PXC PHP RE/ RECI SCE SHED VTA
Considering the environment, this sale is positive and marks the completion of the $15bn divestment programme started after the acquisition of the shale assets from BHP in 2018. Overall, BP’s strategy in downstream is to bring stable earnings, to offset volatility in upstream. In this regard, expanding renewables activities would seem appropriate to BP. While, BP has no competitive advantage in this field, exposure to renewables will allow the oil majors to keep their oil & gas activities.
Companies: BP Plc
Caledonia, which operates the Blanket gold mine in Zimbabwe, announces today a second dividend increase for 2020 with an increase of their dividend from 7.5c a quarter to 8.5c a quarter – an annualised 34c/yr which currently yields 2.3%. This comes on the back of a first increase in January of this year when Caledonia raised its dividend from 6.9c/quarter.
Avation is a lessor of 48 commercial aircraft to a diversified airline client base. This morning, the group has released results for the nine months to 31 March 2020, which illustrate that the business remained profitable in Q3 FY 2020.
Phoenix copper today provides the results from the initial metallurgical test work to recover precious metals from the Empire deposit. Results from leaching with non-toxic ammonium thiosulfate (ATS) resulted in high gold recoveries of nearly 98% gold, and silver recoveries of between 70% and 80%. A full metallurgical report on this new work is available on Phoenix Copper's website.
Companies: CMCL AVAP PXC
Acquisitions and creditors update
Companies: Premier Oil
Shearwater sells resilience and today's trading update shows us how resilient demand has been for its products and services. The Group has swung to EBITDA profitability and cash flow is well ahead of expectations. The macro themes of cyber security and remote working are supportive of robust demand levels going forward. We are maintaining our forecasts. Buy.
Companies: Shearwater Group
InfraStrata's acquisition of the iconic Harland & Wolff (H&W) shipyards in Northern Ireland has been transformational for the group, and with a carefully planned growth strategy, there is a clear route to cash breakeven in the short term. Over the medium to long term, these facilities could support a c£400m revenue business. With the company trading at a c30% discount to its H1/20A book value and c65% to its Adj NAV, we initiate with a Buy recommendation.
Active Energy Group PLC (AEG) listed on the AIM Market of the London Stock Exchange is a renewable energy and forestry management company focused on the production of second-generation biomass fuels using its proprietary CoalSwitch™ technology as part of a portfolio of products. This proprietary steam explosion technology creates an efficient fuel additive that can be mixed with various waste-energy matter to create a biomass-based, pelletised fuel.
Companies: Active Energy Group
PetroTal (PTAL LN/TAL CN)C; Target: £0.45: Initiating coverage – PetroTal is a production and reserve growth story in Peru with a market cap of ~£90 mm. Management’s experience of operating in the jungle and their deep in country relationships are key. Project execution has been excellent. The Bretaña field (48 mmbbl 2P reserves) was acquired from Gran Tierra in late 2017 with production of 1 mbbl/d achieved in 3Q18. By YE19 that figure had grown to >13 mbbl/d. While COVID-19 forced a shut down of the export infrastructure and Brent prices collapsed to ~US$20/bbl, PetroTal has managed to negotiate with Petroperu a reduction in transport fees and a rephasing of a contingent payment. With the recent US$18 mm equity raise strengthening the balance sheet and production expected to restart in July, PetroTal is returning to growth. Bretaña could produce 20 mbbl/d. PetroTal’s shares trade at ~ one quarter of our Core NAV of £0.46 per share and at one third of the company’s value based on its 2P reserves only (2P NAV of £0.28 per share). On flat production, the share price implies EV/DACF multiples of 1.0x in 2021 turning negative in 2022. Importantly PetroTal’s only material liabilities consist of (1) an oil linked contingent payment over three years to Petroperu on very flexible terms and (2) trade payables of US$49 mm with attractive payment terms. We forecast ~US$45 mm of capex (incl. servicing the payables) in 2H20. This is covered by (1) US$28 mm in cash from a recent equity raise plus collecting pending invoices from oil sales, (2) >US$10 mm of VAT receivables and (3) ~US$25 mm operating cash flow (US$11-12/bbl net backs) in 2H20 at US$38/bbl. At ~US$45/bbl and 12 mbbl/d in 2021, we forecast PetroTal generates ~US$90 mm cash flow with ~US$35 mm cash capex (incl. servicing the payables). Our target price of £0.45 per share (~our Core NAV) represents 4.5x the current share price.
i3 Energy (I3E LN): Corporate update | Parex Resources (PXT CN): Trading update in Colombia | Phoenix Global Resources (PGR LN): FY19 results | Royal Dutch Shell (RDSA/B LN): Dry hole in Brazil | IGas Energy (IGAS LN): Trading update | Serinus Energy (SEN LN): Deferred EBRD debt repayment | Union Jack (UJO LN): Additional interest in UK asset | SDX Energy (SDX LN): Update in Egypt and Morocco| ShaMaran Petroleum (SNM CN): Payment from KRG and debt restructuring | United Oil & Gas (UOG LN): Reserves and production update in Egypt | FAR (FAR AU): Not paying cash call in Senegal | Lekoil (LEK LN): Update in Nigeria | San Leon Energy (SLE LN): FY19 results | Savannah Energy (SAVE LN): Trading update | Victoria Oil & Gas (VOG LN): Trading update in Cameroon
Companies: SEN SDX PTAL PGR VOG PXT SAVE RDSA FAR
Oil posted its second weekly loss for the month, as a surge in US coronavirus cases clouds the demand outlook and casts doubts on the market's recovery.
Futures in New York slipped 3.2% this week. The price slump comes just days after oil closed above $40 for the first time since early March, and following a run of weekly gains that lifted oil from its historic plunge below zero in April. Texas -- the centre of the American oil industry -- halted its reopening as virus infections jumped, and Houston's intensive-care wards reached capacity. Bars in Texas and Florida were ordered to shut, and Arizona reported a surge in infections.
While massive OPEC+ output cuts and a pickup in demand have helped crude climb from its April low, price gains have slowed this month. Infections continue to soar in many parts of the world, consumption is still a long way off pre-virus levels and many refiners are struggling with low margins.
Crude stockpiles in the US are at record highs, and there's a risk that US shale producers could start bringing back output. The number of rigs drilling for oil fell by 1 to 188, the lowest since June of 2009.
West Texas Intermediate for August slid 23 cents to settle at $38.49 a barrel in New York.
Brent for August fell 3 cents to close at $41.02 a barrel.
Still, the pessimism's being tempered by huge cuts to Russia's seaborne crude exports, a development that lifted oil earlier in the session. Shipments of the flagship Urals grade from its three main western ports are set to plunge by 40% next month, according to loading programmes seen by Bloomberg. The steep reductions underscore the OPEC+ alliance's commitment to eliminate the oil glut that built up earlier this year.
Other oil news:
Exxon Mobil Corp is preparing to cut jobs in the US as the oil giant focuses on a slimmed-down and more efficient organisational structure, according to people familiar with the matter.
Four automakers backing a California effort to curb tailpipe emissions will break with some big rivals in the legal battle over the Trump administration's relaxation of fuel efficiency standards.
Companies: FOG PVR 88E DGOC EME TRIN UOG
Implications of the gold-silver metallurgy at Empire, Idaho
Yesterday, Phoenix Copper published a metallurgical report on the leaching of its gold-bearing mineralisation from the Empire resource area in Idaho. This showed high recoveries for gold and silver using standard cyanide and non-standard Ammonium Thiosulphate leaching (comparable leach times, reagent consumption and recovery). The implications of these tests may be far ranging for Phoenix as it enables it to consider bringing forward precious metals production from the area, with the following benefits: 1) quicker permitting for a non-cyanide process; 2) cheaper reagents; 3) earlier establishment of mine site infrastructure to assist ongoing economic studies and; 4) cash flow in a robust gold price environment. More test work on the gold recovery process remains to be completed to establish the optimum leaching and recovery parameters. We still see fair value at 34p/sh (see research from 12/05/2020 for full details) but note that Phoenix management is actively seeking to bring forward value in its projects. In the meantime, we have drilling results and a (potential) resource upgrade to look forward to shortly from the Red Star lead-silver project as well as a funded resource drilling program to establish a whole resource for Empire – and not just the base metal-rich zones.
Companies: Sirius Real Estate
Enteq Upstream PLC (LON:NTQ) has released full-year (FY) results for the year-end March 2020 with commentary on the ongoing trading environment. The company reported revenues of around US$10.9mln, underlying adjusted EBITDA (earnings before tax interest depreciation and amortisation) of US$3.1mln,
Companies: Enteq Upstream
Rockfire Resources, the gold and copper exploration junior with projects in northern Queensland has recently commenced a major £0.8m drilling programme on Plateau, its most advanced project. Drilling is likely to be followed by a resource update in late 2020 and a scoping study in Q1 2021. We believe that the updated resource estimate could be commercially significant. This reflects the promising drilling results post July 2019’s resource assessment and the potential for the drilling programme to expand the resource base given the analogous Mt Wright mine geology 47 km to the NE. The new drilling programme will include diamond drilling for the first time which will enable deeper higher-grade targets to be targeted. The drilling programme has been underpinned by the recently announced £1m raise. We believe the scope for positive news flow in the coming months is excellent while the gold market backdrop should be supportive for gold exploration as well as production plays over the balance of 2020.
Companies: Rockfire Resources
AFC Energy is a global leader in the fuel cell sector. It has a proven fuel cell technology which it is commercialising through its H-Power™ product, an off-grid electric vehicle charging system which is run on hydrogen and produces no emissions. The company's core fuel cell technology is a liquid alkaline fuel cell called HydroX-Cell(L)™. The company is also developing a solid alkaline fuel cell called HydroX-Cell(S)™ , the critical component of which is a is a solid electrolyte which upon validation will be marketed under the AlkaMem™ trademark. We expect the AlkaMem™ product to have multiple electro-chemical applications outside of fuel cells. The purpose of this note is to compare AFC Energy's products, markets and business strategy against its listed peers Ceres Power and ITM Power. The note also assesses the state and outlook of the hydrogen market in addition to the proton exchange membrane market, which is relevant for AFC Energy's AlkaMem™ product. As a reminder, we believe AFC Energy has a fair value of 27p/sh.
Companies: AFC AFC AFC
Petropavlovsk PLC (LSE: POG) have released their FY2019 results and Q1 trading update this morning. The company had already released production numbers for last year. Overall the numbers reflected a strong operational performance although various financial/other parameters thwarted positive changes below the EBITDA line. Conversely net cash from operations reduced by 43% due to lower cash from prepayment as part of the group’s forward sale facility with the banks, yet net debt came down to $561m. . We show the key figures in Table 1.
Solid State is a manufacturer of computing, power and communications products, and value added distributor of electronic components. This morning, the group has provided a further update on trading in light of the present COVID-19 backdrop, ahead of full year results to 31 March 2020 due to be released on 30 June.
Cadence today provides and update on the Amapá iron ore project in Brazil. The Amapá JV (EV Mineração S.A.), in which Cadence can earn an initial 20% of the project, is understood to be on track to begin shipping stockpiled iron ore from late Q2 / early Q3 2020. Finalisation of the negotiation with the secured creditors still needs to be reached, but the Amapá JV partners are engaging constructively. In preparation for shipping, a trucking contractor has been hired to move key equipment to site and a shipping manager and shipping broker have been engaged.
This morning's update from CSSG confirms the positive direction of travel highlighted when the company published H1 results in March. With comparators still challenging (because of one-off work in the prior year), and “light” Covid-19 impacts in recent months, the expected £1.6m EBITDA flagged by the company seems a creditable number, still within touching distance of historical performance in both EBITDA and PBTA terms. Net cash, moreover, even after three months of the Covid-19 crisis, is reported to still be higher than the £2.4m which the company reports it had at the start (which in turn represents an increase on the £2.3m as at 31 December 2019). Not surprisingly, having suspended payment of the dividend a couple of months ago, the Board is now proposing to have another look at this question, at least in relation to the half year dividend.
PTY's announcement this morning flags a change in the CFO role with the new appointee benefiting from extensive experience in developing digital businesses to their full potential, both in overall and in financial leadership positions. His arrival follows on from highly proactive action led by the previous finance director, delivering a platform for growth once the current uncertain circumstances have abated.
Companies: KDNC CSSG PTY SOLI