21 Oct 19
Quarterly Research Outlook Autumn 2019
Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.
Companies: ABBY AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CDM CSRT TIDE CYAN DTG DEMG ELM EMR FPO FDEV GTLY GENL GHH GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KAPE KEYS KWS KCT KGH LAM LIT LOK MACF MANO MOD OXIG PCA PANR APP SRE PHC PMO RBW RMM RBGP REDD RSW RNO ROR SUS SCPA SEN SHG SOLG SOM SUMO TM17 INCE TWD TRAK TRI VNET VTC ZOO ZTF
26 Jul 17
Advanced Materials – the building blocks of Tomorrow’s World
Whether we know it or not, advanced materials are a core component in the everyday life of the everyday person. They are the key material in items we often disregard, such as printer inks and lotions, to objects which defy the laws of gravity like the Airbus A380 and London’s Shard. Furthermore, these materials are not only essential to many objects and structures, but, due to their superior qualities, are the key to the advancement of many industries. One such example is the use of carbon fibre which offers five to ten times more rigidness, stiffness, and strength than its aluminium counterpart. As a result of these impressive qualities, motorsport and athletics have improved ten-fold since their mainstream use and new records are broken every year.
Companies: AGM AUTG BIOM BOY CAR CKT EMH EXO GRPH HAYD IKA ITX CRPR MGAM NANO OXIG SYN SCE SYM VCT ZEN HDD
07 Oct 19
Cancer - Strategy for affordable care
The cancer burden is growing globally. Each year >18 million people are diagnosed, nearly 10 million die and the estimated economic cost exceeds $1 trillion. From early diagnosis to late-stage disease, cancer care often involves inappropriate or unnecessary interventions that drive costs but provide limited clinical benefit. Coupled with an increased understanding of cancer biology and rapid technological advances, this has been driving momentum for precision medicine, leading to patient and societal benefits. The use of biomarkers and sophisticated diagnostics is facilitating early intervention through robot-enabled minimally invasive surgery and locally delivered radiotherapy. Immuno-oncology has revolutionised cancer care, with the focus now on identifying combinations that further improve long-term outcomes. Liquid biopsies and companion diagnostics are increasingly being used to personalise therapy.
Companies: VSC ABT ABBV AFMD A GOOGL AMGN AZN BCART BMY CVRS EKTAB EXAS GSK ILMN IPH ISRG IBAB JNJ MDXH MDG1 MDT MRK MYGN NSTG NOVN OCX PFE QGEN RAYB ROG SAN SGEN TMO TRXC TNG VAR VCYT VNRX XNCR ECX IMM
24 Mar 20
Endeavour Mining - Q419 and FY19 results ahead of expectations
Fourth quarter adjusted EPS at Endeavour of US$0.336 was materially ahead of both our (US$0.188) and consensus (US$0.21–0.27) forecasts, despite all operations being affected by an extension of the traditional Q3 rainy season into Q4. The positive performance was driven by a close control of all-in sustaining costs (AISC), which were US$819/oz for the quarter (cf our forecast of US$884/oz and a consensus of US$869/oz). Production (which was already known) was exactly in line with our prior expectations, albeit it was better at Houndé and Agbaou and worse at Karma. We have now updated our forecasts to reflect FY20 guidance and (in the aftermath of the recent turbulence) a lower gold price. Although this has entailed a reduction in our FY20 estimates – in part owing to a continuation of higher total cash costs for longer – they are nevertheless inherently conservative in their assumptions surrounding Kari Pump (see page 6) and remain materially higher than FY19, reflecting Endeavour’s evolution from a cash consumer to a cash generator.
Companies: Endeavour Mining
04 Apr 20
Adding visibility and improving liquidity
TGP refinances its USD 225m RCF Two new contracts, LNGC contract coverage at 98% in ’20 and 94% in ‘21 Refinancing risk reduced, but it was already very low in our view Bond spreads imply distress that is not there
Companies: Teekay LNG Partners LP
21 Mar 18
Bitesize briefing – Vermillion Energy
03 Mar 20
Globex Mining Enterprises active with exploration and planning further acquisitions
09 Jan 20
Verde Agritech pushes greener potash saying farming must change
25 Feb 20
Executive interview - VolitionRx
18 Nov 19
ROBO Global team discuss its focus on innovation and key developments in AI
30 Jan 20
Scandium International aiming to become first producer from primary scandium mine
20 Nov 17
Executive interview - VolitionRx
23 Jan 20
Executive interview - InMed: A leader in the development of cannabinol (CBN) therapeutics
15 Feb 16
JP Morgan - Update at 121 Mining Investment
21 Jan 20
Executive interview - InMed: Leading the way in the therapeutic development of cannabinol (CBN)
21 Jan 20
Executive interview - InMed’s cannabinol (CBN) clinical program in epidermolysis bullosa
21 Jan 20
Executive interview - InMed’s cannabinol (CBN) formulation for glaucoma
25 Nov 19
Silvercorp Metals 'in a unique position' with two producing mines in China
21 Jan 20
Executive interview - InMed: Is cannabinol (CBN) safe?
19 Mar 20
Information Services Corp sets record for revenue in 2019 financial numbers
BioLargo - A record-setting year
BioLargo reported record revenue of $1.86m for 2019, a 36% increase over 2018 and a record single quarter revenue of over $560,000 for Q4. Odor-no-More (ONM) had its best year to date with $1.46m in revenue ($832,000 gross profit). However, ONM fell short of its goal of breaking even for the year with a loss of $337,000 (albeit improved from the 2018 $433,000 loss) due to increased headcount for future growth. The company noted that in 2020 it will focus on increasing sales through improved distribution and strategic alliances and will keep its headcount constant. This will be supported by a new $10m equity facility from Lincoln Park.
02 Apr 20
PDL BioPharma - Accelerating asset monetization
PDL BioPharma announced that the company is targeting either a complete sale or the monetization of its four key assets by the end of 2020, much faster than the two to three years previously communicated. To this end, the company has enlisted the help of three different advisors, namely Bank of America for the sale of the entire company or the royalty portfolio, Torreya for the sale of Noden and Evofem and SVB Leerink to investigate opportunities for LENSAR. The company will return the value to shareholders in as tax efficient a manner as possible likely via share repurchases or dividends.
01 Apr 20
PDL BioPharma - Company to seek to monetize assets
PDL BioPharma (PDL) has announced that following the completion of a strategic review process it has decided to cease additional strategic investments and monetize the company’s assets, returning net proceeds to shareholders. As the assets are not focused on any one area within healthcare, we believe they will likely need to be sold off piecemeal, which will lead to a relatively lengthy process (the company has estimated two to three years or longer). PDL’s stock has typically traded at a discount to its book value ($5.58 per share as of the end of Q319), so this should be a way to unlock the value of the company.
01 Apr 20
A safe bet
In an environment where the majority of the MedTech stocks have been bashed relentlessly in the past month, Qiagen has been an exception. A takeover bid by Thermo Fisher took the scrip to lifetime highs in early March 2020. Moreover, the spread of COVID-19 globally, which opened a window of opportunity for the in-vitro diagnostics firm, further bolstered the momentum. Ergo, we view Qiagen as a good cash proxy in the current volatile environment.
27 Mar 20
Canacol Energy - Fixed-contract gas prices protect cash flows
Canacol Energy has recently reported record annual production of 143mmscfd for FY19 in line with our estimates. Key drivers for an increase of 28% in production versus FY18 include the completion of the Jobo to Cartagena, 100mmscfd pipeline. Management expects production for 2020 to be c 205mmscfd and capex for the year of c US$114m. Although the oil and gas industry is facing severe headwinds, which include the impact of coronavirus on global energy demand and the Russia/Saudi Arabia oil price war, Canacol fundamentals remain protected due to fixed contract gas prices. As a consequence, the company is able to maintain its capex, production, EBITDAX guidance and dividend for FY20, while its peers had to resort to cuts to protect their balance sheets. Our 2P + risked exploration NAV has decreased by 2% to C$7.02/share, reflecting higher actual end-FY19 net debt of US$300m versus our estimate of US$271m.
26 Mar 20
Sunesis Pharmaceuticals - 400mg data similar to previous cohort
On 18 March, Sunesis released the first assessments of the 400mg cohort in its ongoing dosing study of vecabrutinib for B-cell malignancies. Two (of three) patients in this cohort showed stable disease (SD), with one showing a 48% response. These results are largely similar to those seen with the 300mg cohort (one near-responder SD, two stabilized SD, and one progressor). We would like to have seen more definitive activity in this cohort, but there is still the possibility that Sunesis will cross the line of generating partial responses (PRs) in the upcoming 500mg cohort.
Sunesis Pharmaceuticals Inc
26 Mar 20
SP Angel . Morning View
Anglo Asian Mining* (AAZ LN) – Production maintained amid escalating state COVID-19 containment measures | Adriatic Metals* (ADT1 LN) – Gravity data reveals additional targets | Ariana Resources* (AAU LN) – Subsidiary pays Ariana £1.6m dividend | Aura Energy* (AURA LN) – Postponement of EGM | Caledonia Mining (CMCL LN) – Virus mitigation measures in place | Gem Diamonds (GEMD LN) – Letseng placed on care and maintenance | Polymet Mining* (PLM N) - Minnesota Supreme Court will hear appeal on three PolyMet permits | Sunstone Metals Limited (STM AU) – Identification of high-grade gold-copper porphyry targets at Bramaderos | Serabi Gold* (SRB LN) –– Higher gold prices and falling Brazalian real
AAZ ADT1 AAU AURA CMCL GEMD POM SRB
26 Mar 20
Aurania Resources: Pursuing the Path Not Taken in Ecuador
The similarity in corporate name between Aurania Resources (TSX-V:ARU) and the dearly departed Aurelian Resources is more than coincidental. It is noticeable that the companies have the same ticker.Management was involved in the discovery of much of the NI 43-101 gold and copper resources in the ad
25 Mar 20