Weekly Brief 31st July

We have made it through another month and the second half of the year is well and truly underway. 

No denying 2020 will go down as an annus horribilis and who knows what the remainder of the year might bring, but there have been some positives out there, enough for #PositiveThingsAbout2020 to be trending on Twitter this week. With all of this extra time at home, it may be picking up a new hobby or revisiting an old passion, spending some quality time with your family, or even just catching up on some sleep – or that your commute to work has been reduced to moving from your bed to the sofa in your PJs! And in the UK, who can fault the sunniest spring on record and now [hopeful] heatwave after heatwave bringing uninterrupted sunshine for the summertime? So, as you spend today basking in the 35 degree heat, take a moment to think on what your positive things about 2020 are – even if it is simply that it won’t be long until it is over!


Client News:

Katoro Gold (AIM: KAT) announced details of a planned confirmatory drilling programme to target nickel sulphides at their Haneti Nickel Project in Tanzania. This first exploration drill programme at the project presents an interesting exploration opportunity following a renewed interest and excitement in nickel. Very promising drill targets that are prospective for possible nickel sulphide deposits have been previously identified in the project area, and this drill programme aims to gain further understanding of its geological characteristics and potentially identify the existence of nickel sulphides. Preparations are currently underway for the launch of the drill programme. Additionally, Katoro recently added to its website an updated corporate presentation and a new presentation on its Blyvoor gold tailings project in South Africa.

Oracle Power Plc (AIM: ORCP) announced a non-biding Memorandum of Understanding with its larger shareholder, The Office of His Highness Sheikh Ahmed Dalmook Al Maktoum (‘HH Private Office’) to potentially partner and collaborate to explore potential mining opportunities in Africa. This is in line with ORCP’s stated broader strategy to become an international power and natural resource project developer focussed on incubating natural resource assets to turn them into commercially viable production ventures. Focus and priority however remains the Thar Block VI in Pakistan.

LHV announced award-winning corporate pre-paid payments solution provider, B4B Payments, has become the latest FinTech customer of its London branch. Customers such as B4B are being drawn to LHV’s its value proposition its full service offering, and its partnership model whereby it works closely with clients to develop solutions that suit themd n. Since setting up shop in London in 2018, LHV’s diverse client base has quadrupled to 120.

FastForward Innovations (AIM: FFWD) provided an update on its investee company EMMAC Life Sciences, Europe’s largest independent cannabis company. Medalchemy, EMMAC’s Good Manufacturing Practice certified manufacturing site in Alicante, Spain has secured approval from the Spanish Health Authorities to cultivate medical cannabis. It now has fully integrated cannabis facilities, with a licence to grow medical cannabis commercially as well as extract and manufacture cannabis extract as an active pharmaceutical ingredient.

Plexus Holdings Plc (AIM: POS) won a purchase order for its proprietary POS-GRIP surface production wellhead system from Spirit Energy for a new gas well in the UK North Sea. Milestone payments are to be paid to Plexus following the date of the signing of the purchase order through to completion, which is scheduled for February 2021. Plexus’ leakproof wellheads do not just present a compelling environmental proposition by limiting harmful emissions from surface production operations, but also an economic one as reduced installation and non-producing time thanks to not having to shut down production to carry out maintenance generates significant operational cost savings.  This marks the second purchase order from Spirit Energy, and is in line with the Company’s IP-led strategy to extend the application of its POS-GRIP technology beyond jack-up exploration, where it has been used on over 400 wells worldwide, into higher value areas of the energy sector, including oil and gas production and geothermal.

Empire Metals Limited (AIM: EEE) announced its interim results for the six month period ended 30 June 2020. The first half of the year has seen Empire lay the foundations for the diversification of its  portfolio, prompting its rebrand to Empire Metals Limited from its previous moniker, Georgian Mining. In February, £600,000 was raised through the placing and subscription of new ordinary shares, allowing progression with their strategy to identify compelling new assets. After evaluation of potential opportunities, Empire entered into a Binding Heads of Agreement in April with Artemis Resources Limited to acquire a 41% interest in the Mummi Munni Palladium Project in Australia.

Cora Gold (AIM: CORA) has had an exciting week with two new gold discoveries at their flagship Sanankoro project; the first being a 1.5km gold zone at the Bokoro II permit, which borders Sanankoro to the East. This marks the first time the permit has been systemically drilled by Cora, with 67 shallow oxide holes drilled to a maximum depth of 80m with multiple holes ending in mineralisation. The second discovery of a 1.5km gold zone was made on the Dako II permit to the South of Sanankoro with 18 shallow oxide holes drilled to hole lengths of 60-80m. Both discoveries show good shallow oxide grades and widths of mineralisation, and many similar oxide targets remain in close proximity within the project area. Cora remains focused on the Sanankoro project, with a positive scoping study and recently signed term sheet with Lionhead Capital supporting their future development. Moreover, against a backdrop of rising gold prices, Cora’s share price has risen 50% this week.

Keras Resources (AIM: KRS) has agreed to acquire a 51% interest in the Diamond Creek phosphate mine in Utah, USA, which is a fully permitted, high grade direct shipping ore, low capex organic phosphate operating mine. This acquisition provides Keras with a controlling interest in a niche market with one of the highest grade phosphate projects in the US, marketing a premium product at a significantly higher grade than competitors at a competitive price with a direct route to market. This complements Keras’s existing asset base with its interest in Nayega, and supports their strategy of building cashflow positive mining projects, growing their asset base and diversifying their revenue streams. A placing of 1,440,011,666 new ordinary shares has been agreed in order to raise £1,728,013.99 at a price of 0.12p per ordinary share. Furthermore, Jean du Plessis, who was previously part of the successful Chromex Plc management team alongside CEO Russell Lamming, and COO Graham Stacey, has been appointed to advance Diamond Creek.


In the news this week…

Cora Gold (AIM: CORA) has benefitted from the surge in gold prices with shares increasing by 50% this week. Read the full article in The Times.

CEO of Oracle Power (AIM: ORCP) Naheed Memon spoke to Proactive Investors about the MoU it has entered into with its largest shareholder.


You may have missed…

Despite gold prices reaching a record high, rare earth companies outshine gold.

A study by The Pipeline found that women-led FTSE350 companies perform better with a profit margin 10 times greater than those without women making up more than a third of the executive roles.

The Perseverance rover took off on Thursday for NASA’s most ambitious Mars mission.

Looking for a new series to binge? Here are this year’s Emmy nominations.

Members of South Africa’s most notorious wildlife trafficking gang have been sentenced to 56.5 years in prison.

Banksy’s artwork ‘Mediterranean Sea View 2017’ has been auctioned for £2.2m at Sotheby’s to raise money for a hospital in Bethlehem.

Today is the celebration of Eid al-Adha for Muslims around the world.


Sign up to receive our weekly newsletter and keep updated with our latest news and insights