Research, Charts & Company Announcements
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Edison Investment Research is terminating coverage on Intelligent Energy Holdings (IEH). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.
City of London Group (COLG) - Sch 1—RTO of Milton Homes Limited, an equity release provider which has a UK residential property portfolio of 586 properties with a market value of approximately £77 million as at 30 June 2017. Offer TBA. Due 5 Oct | Springfield Properties—Scottish housebuilder. Intention to float. Offer TBA “Our turnover exceeded £100 million for the first time this year and now we employ around 500 people. This IPO is the next step in our growth.” | Warehouse REIT - The Company will invest in a diversified portfolio of UK warehouse assets located in urban areas. The Company is targeting a dividend yield of 5.5p equivalent to a yield of 5.5 percent. for the year ending 31 March 2019. Issue price 100p. Offer raising £150m at £1 with market cap of £166m. Due 20 Sep | OnTheMarket—Intention to float on AIM to raise c. £50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. |People’s Investment Trust—Objective of sustainable wealth creation. Also to list on the Social Stock Exchange. Targeting £125m raise on 17 Oct. No performance fees or executive bonuses in order to focus on long term rather than short term performance. | Charter Court Financial Services Group—Intention to float. Specialist lender serving the UK residential mortgage market. The net mortgage loan book stood at £4.4 billion as at 30 June 2017 growing at a compound annual growth rate of 92 percent since 31 December 2014. Part vendor sale and £20m primary raise. | ContourGlobal LP—Report on Bloomberg that the thermal energy power generator is considering a London listing. | Hipgnosis Songs Fund investment Company offering pure-play exposure to Songs and associated musical intellectual property rights. Offer raising £200m at 100p. The Company has decided to extend the closing date for the Placing, Offer for Subscription and Intermediaries Offer to 1 August 2017. The Company may bring forward this closing date at any time. Admission 15 Sep.
Companies: EEP SCE JDG EKT BGO SWL EYE PCA LBP RBW
Intelligent Energy’s interims were in line with the guidance given at the AGM in March. The results demonstrate that management has succeeded in reducing cash burn to its stated target of c £1.6m/month. It intends to bring the group to a cash break-even position within the next two years through volume roll-out of standard air-cooled products. Project wins during the period indicate there is appetite for Intelligent Energy’s fuel cell stacks in the target markets, although we note that additional funding will be required to support this process. We leave our estimates unchanged.
During H117, Intelligent Energy was reshaped to focus on driving sales of commercially ready B2B products. The group has won contracts in two of its three target segments: stationary power and drones, withdrawn from its Indian energy management business and realised substantial cost savings. However, product roll-out has been slower than originally anticipated, with management in financing discussions with key convertible loan note holders and we have reduced our estimates.
Intelligent Energy (IEH) has announced a deal to supply 600 low-power 1kW fuel-cell modules to US-based Luxfer-GTM Technologies for integration into Luxfer-GTM’s Zero-Set Lite portable light towers. The contract, the value of which has not been disclosed, underpins our assumption of £5.0m product sales during FY17, so we leave our estimates unchanged.
Intelligent Energy (IEH) has announced that the deal to acquire the Energy Management Business of GTL will not now be consummated. The move leaves management free to concentrate on driving sales of commercially ready B2B products, which is a key element of its strategy. We adjust our FY17e revenue estimate while leaving our pre-exceptional losses and cash-flow forecasts unchanged.
Intelligent Energy (IEH) has developed a high power density fuel cell technology suitable for use in multiple sectors. The group has an excellent record of providing technology for automotive companies, most notably for the Suzuki Burgman electric scooter. Under its revised strategy, it is focusing on near-term opportunities to deliver products for deployment in distributed power generation, UAV and consumer electronics applications to drive revenue growth during the years before mainstream adoption of fuel cell vehicles. We reintroduce our estimates to reflect the new strategy.
Intelligent Energy (“IE”) announced this morning that due to unexpected developments with various parties in its funding discussions, the company will not be completing its funding process by the end of Q1 2016 as stated to, and expected by, the market. In light of this announcement, and due to the impact of the uncertainty around funding on IE’s growth prospects, we have suspended our forecasts until the funding situation is resolved and we receive clarity on IE’s future growth potential.
Intelligent Energy’s AGM statement notes significant progress since the commencement of FY16 with regard to executing its operational strategy and securing the funding required to fully realize the value of its innovative fuel cell technology.
To coincide with the date of its AGM, Intelligent Energy (“IE”) released a business update to the market this morning. It was reassuring in that there were no surprises, and it confirmed that the company is where it said it would be with respect to business execution, cost reduction, cash position and critically progression of funding. There was perhaps an expectation in certain areas of the market that the funding process would have concluded by the time of the AGM, however, the company has always maintained an end of Q1 2016 timeframe and this remains the position. Operationally IE is executing well. Highlights are a growing number of IE power units going into the field and delivering clean and reliable power to GTL’s Indian telecom towers as IE demonstrates successful servicing of the GTL contract, and a £5.25m joint development agreement with an emerging smartphone OEM in the consumer electronics division. The one new piece of information in the statement was that discussions for an upfront license payment of £10m are at an advanced stage; the division this is in was not disclosed. The company has succeeded in implementing its cost reduction program, with cash balance at the end of January at £17.4m and underlying cash burn reduced to below £3.5m/month. This cash position brings into focus why the market is currently heavily focused on IE’s funding activities.
Intelligent Energy (IEH) has signed a joint development agreement (JDA) with an emerging smartphone OEM. The announcement shows the group is making rapid progress on executing its operational strategy while management proceeds with completing its financing programme. In January, management noted that good progress was being made towards completing both phases of the financing programme by the end of calendar Q116, as originally indicated.
Intelligent Energy (“IE”) announced it has signed a £5.25m Joint Development Agreement with a smartphone OEM this morning. The deal follows on from the letter of intent (“LOI”) with same OEM announced on 30th November 2015. The rapid progression from LOI to a full commercial contract in a little over 2 months is impressive, and is testament to both the world-class nature of IE’s platform and the deal making capability of management. The OEM is looking to embed IE’s fuel-cell platform into its own smartphone platform, initially for a specific application, as a permanent solution to the current and growing issue of battery life. As the market focuses almost exclusively on IE’s funding situation, this is an important reminder that the underlying business continues to progress; delivering on stated strategic objectives in all three of its divisions of motive, distributed power and generation (”DP&G”) and, in this case, consumer electronics (“CE”). The deal fits perfectly with IE’s strategy to move the CE division over to a B2B licensing model, very similar to the motive division, where the customer fully or partially funds development costs and then takes the end product to market. The majority of IE’s JDA costs will be absorbed by its existing platform support function, and the deal will deliver a healthy cash margin. Due to the relatively modest size of the deal compared to the GTL deal in DP&G, and the fact that it was expected that IE would execute such deals as part of its CE strategy, we leave our numbers unchanged.
In October 2015, Intelligent Energy (“IE”) announced a transformational £1.2bn revenue, 10 year telco tower energy management deal with Indian telco GTL. It is the largest deal announced by any fuel-cell company globally to date, and will over time see the scale deployment of IE’s fuel-cell system in both primary and back-up power modes across c.70% of GTL’s c. 27,400 Indian telco tower sites. Since beginning the deployment of fuel cell units on a limited number of GTL sites, IE’s Asian subsidiary Essential Energy (”EE”) has successfully increased the up-time of the telecom towers to circa 100%, solving a significant structural and operational issue. EE has delivered 10MWh of carbon-free lectricity to date, and in doing so has removed 55 tons of harmful CO2 from the environment that would have been released by the diesel generators IE’s platform has replaced. This announcement is a reminder that IE’s technology platform is proven in the field at scale, and is well capable of transforming the energy management of not just GTL’s Indian Telco towers estate (which accounts for circa 6% of the Indian market) but the whole Indian telco market.
Anglo American | Anglo Pacific | Capital Drilling | Intelligent Energy | Lonmin PLC | Noricum Gold | PolyMet | Stellar Diamonds | Tri-Star Resources
Companies: AAL APF CAPD LBP NMG POM LMI STEL TSG
In October, Intelligent Energy (“IE”) announced a transformational £1.2bn revenue, 10 year telco tower energy management deal with Indian telco GTL. It is the largest deal announced by any fuel-cell company globally to date, and will over time see the scale deployment of IE’s fuel-cell system in both primary and back-up power modes across c.70% of GTL’s c. 27,400 Indian telco tower sites. It was announced that the deal had been signed and would complete in Q1 2016, subject to a number of market norm conditions, of which receiving regulatory clearance from the Indian competition commission was a key one. Today’s announcement confirms that the deal has received clearance as was expected, and we look for deal completion to follow in the near-term.
Research Tree provides access to ongoing research coverage, media content and regulatory news on LB-Shell. We currently have 24 research reports from 4 professional analysts.
|14Jan19 14:00||RNS||Price Monitoring Extension|
|13Dec18 16:09||RNS||Director/PDMR Shareholding|
|10Dec18 11:12||RNS||Intention to Delist|
|21Aug18 13:13||RNS||Half-year Report|
|27Jun18 11:03||RNS||Holding(s) in Company|
Hurricane Energy (HUR): Operational Update | Sound Energy (SOU): Placing & Update | Chariot Oil & Gas (CHAR): Feasibility Study | Reabold Resources (RBD): Operational Update
Companies: HUR SOU CHAR RBD
Diversified Gas & Oil (DGOC): Quarterly Dividend | Ascent Resources* (AST): Permitting Update
Companies: Diversified Gas & Oil Ascent Resources
Anglo Asian Mining* (AAZ LN) BUY, 127p – Exploration Report | Bluejay Mining* (JAY LN) BUY, Target price 21.3p – Focus on delivery of 5,000t, 89% ilmenite grade bulk smelter sample for Rio Tinto | Chaarat Gold* (CGH LN) BUY, 42p – Tulkubash Drilling results | Strandline Resources (STA AU) – Strandline gains US$26m credit approval for mineral sands mine in Tanzania from Nedbank CIB | Virginia Energy Resources (VUI CN) – US Supreme Court upholds Virginia State ban on Uranium | Yellow Cake (YCA LN) – Annual results
Companies: AAZ JAY CGH YCA
Asiamet shares have fallen 24% since the release of the BKM Bankable Feasibility Study on Friday on increased capex and opex numbers. We think the move is an over-reaction.
Companies: ASIAMET RESOURCES
We’re just over three months in to 2019 and we’ve seen a 10% UK market rally, retracing much of the Q4 decline, such is the nature of fickle market sentiment. That said, many of the issues we wrote about three months ago that were impacting markets remain: notably Brexit, trade wars, geopolitics and global monetary policy. The 2019 rally thus far feels somewhat fragile, with competing forces of optimism on a potential trade deal which could underpin the rally, against the deterioration in underlying economic data that could ultimately undermine the recent market gains. In this context, we look at what the lead indicators and the market are telling us about the industrial cycle and the stocks most exposed to various industrial trends. The Q4 derating in short cycle industrials and autos had been vicious and while these sectors have seen a more solid footing in 2019, with earnings downgrades being priced in, it will likely take a trough in lead indicators before short cycle stocks can start to perform again and re-rate relative to the market.
Companies: ARS CYAN HYR LIT SOM ABBY AMS AMER ANX ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE DTG DEMG EMR FPO FST GTLY GENL GOR GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO INDI JHD JOG KEYS KCT KGH LAM LOK MACF MNO MANO MOD MKLW OXIG PCA PANR PARK PGM PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TRAK TRI VNET VTC ZOO ZTF
The completion of $825m in equity and convertible financing now puts Sirius on the cusp of finalising the funding package for its WoodSmith mine. The company plans to issue a $500m high yield bond in the coming months which will unlock the remaining $2.5bn credit facility from JP Morgan, needed to complete the project.
Companies: Sirius Minerals
Salt Lake Potash has released a scoping study for a commercial scale SOP project at Lake Way. The Study is based on production of 200,000tpa of premium grade SOP (53% K2O) with a mine life of over 20 years. Estimated pre-production capital of A$237m and LOM opex of A$264/t (US$185/t) FOB. Estimated Post Tax NPV8% of A$381m, IRR of 27% and payback of 3.2 years with first production forecast for Q4/20. Salt Lake Potash raised A$20.25m at A$0.54 (29.8p) along with a 1 for 4 option exercisable at A$0.85 before June 2023 and are in advanced discussions with a debt provider for a debt funding package which will support funding for the Lake Way Project to first production next year. With the project financing advanced, permitting progressing and a pipeline of further growth beyond Lake Way the potential upside is significant. As such we have increased our near-term valuation to 60p per share.
Companies: Salt Lake Potash
Iofina’s placing, subscription and open offer has raised gross proceeds of £7m, which allows it to accelerate the development of its next iodine plant and reduce high cost debt. Gearing further benefits from the debt-for-equity swap, leaving it well positioned to refinance its remaining debt by July next year. Iodine prices continue to improve, already reaching our long-term forecast of $30/kg, highlighting the scope for estimate upgrades if this trend continues. Interest in Iofina’s CBD ambitions is high. While this complementary opportunity is embryonic, it offers exposure to strong growth and high-margin potential.
The market has not faced quite so many conflicting challenges for a number of years, whether related to global geopolitics, trade wars, ongoing Eurozone issues or the “will they, won’t they” saga of Brexit. In our Best Ideas, we sought to highlight stocks that present investors with interesting opportunities following recent market moves. Those stocks, we believe, warrant investor attention, in many cases for uncorrelated or stockspecific reasons, regardless of the near-to-medium term market direction. These stocks, in general, represent attractive and well-managed businesses or assets, with share price catalysts and where valuations or recent stock performance provide investors with a good entry point.
Companies: 7DIG ABBY AMS ANX ARS ATYM AVON BLVN PIER CGS CAML CALL CSRT TIDE DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KEYS KCT KGH LAM MACF MOD MKLW OXIG PCA PARK PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TWD TRAK TRI VNET VTC ZTF
Hurricane Energy (HUR): Operational Update | Baron Oil* (BOIL): UK Licence Awards | Reabold Resources (RBD): UK Licence Awards | Cabot Energy* (CAB): Funding Arrangement | Lansdowne Oil & Gas* (LOGP)/Providence Resources (PVR): Operational Update
Companies: HUR BOIL RBD CAB LOGP
KEFI Minerals is an AIM-listed gold and base metals mineral exploration/development company advancing DFS stage Tulu Kapi Gold Project in Western Ethiopia as well as a set of precious and base metals exploration permits in Saudi Arabia.
Companies: Kefi Minerals
In its nine-month operational update, Pan African Resources (PAF) disclosed production that is consistent with its FY19 guidance of 170,000oz. This caused us to reduce our FY19 forecasts fractionally in anticipation of lower production than we previously expected from Barberton offset by higher (but lower-margin) production from Evander underground and the BTRP. More importantly, however, Pan African’s directors approved the development of the Evander 8 Shaft pillar project, with production from as early as August, causing us to increase our forecasts for FY20 and beyond and our ultimate valuation of the company.
Companies: Pan African Resources
1Q19 production was 3.7 mboe/d (GMP FEe: 3.4 mboe/d). NW Gemsa was 2.1 mboe/d (GMP FEe: 1.8 mboe/d), Meseda was 826 bbl/d (GMP FEe: 848 bbl/d) and Morocco was 761 boe/d (GMP FEe: 763 boe/d).
Companies: Sdx Energy
The purpose of this note is to provide an overview of the implications for i3 Energy’s forthcoming summer-2019 three-well drilling programme, to provide context for the forthcoming commercial and regulatory milestones that i3 Energy could be expected to achieve under a success case scenario and to provide the market with our fair value estimate for i3 Energy.
Companies: I3 Energy
Key information: Imerys aims to ramp up organic growth gradually, to reach the underlying market level by 2022. It will generate €100m in expected cost savings in 2022. It now has an operating profitability target, namely +200bp in the current EBITDA margin vs. 2018.