Thungela Resources continues its rocky road in its first week of listing
Thungela Resources Ltd (LON:TGA) continues its roller-coaster ride in its first – and only – week in the FTSE 100.
Shares in the thermal coal miner slumped on Monday, revived on Tuesday and are now down again on Wednesday.
Down 8.48% to 131.82p to be precise.
The company was spun off from Anglo American PLC (LON:AAL) and is in the leading index by default. Its market capitalisation is in the millions rather than billions for a start.
It will also have its primary listing in Johannesberg which rules it out of joining the FTSE UK indices.
But for this week, until its nationality changes from the UK to South Africa on Friday, it has been placed in the same category as Anglo.
Which means it is in the FTSE 100 for just a week. But an eventful one for shareholders.
3.28pm: HeiQ higher as it signs German partnership deal
HeiQ PLC (LON:HEIQ) has moved higher after signed a partnership deal with a leading European chemicals group.
Its HeiQ Chrisal subsidiary has linked up with Germany’s Wöllner GmbH to supply an environmentally friendly cleaning solution. Under the terms of the distribution agreement, HeiQ will receive revenues of at least €2mln over a five-year period.The solution will be added to Wöllner’s Process Enhancement Chemicals product lines for industrial water circuits.
HeiQ chief executive Carlo Centonze said: “This agreement is of strategic importance for HeiQ Chrisal, providing this innovative business access to the previously unentered arena of industrial water circuits…We believe that this is just the start of similar contracts which have the potential to deliver solid growth to HeiQ as we strengthen our presence in the $50bn probiotics market.”
HeiQ shares have climbed 6.5p or 3.58% to 188p.
1.33pm: Distribution group hit by COVID-19 uncertainty and cost increases
HC Slingsby PLC (LON:SLNG) is out of favour after a downbeat trading statement.
The company, which distributes industrial and commercial equipment ranging from power generators to workwear, had previously said that profits in the three months to March had come in at £0.1mln.
An improvement in sales had offset the impact of a fall in gross margin.
But updating the figures for its annual meeting, it said there had been a flat April so profits for first four months were stuck at £0.1mln. This compares to £0.2mln for the same period in 2020.
It said: “The market remains competitive and the group remains cautious regarding the outlook. This is particularly the case due to the significant uncertainty caused by coronavirus.
“Whilst the group’s sales grew in 2020 due to demand for coronavirus related products, the group has not experienced the same level of orders in April and May 2021 that it did during 2020.
“It is unclear as to the impact that the virus will have on demand going forward. There is also heightened potential for credit related issues should customers become insolvent.”
It also warned it was experiencing significant cost increases across its product range, as well as higher shipping costs and delays.
This impacted gross margins, an effect which it expected to persist for the remainder of the year.
Its shares are down 7.41% or 20p at 250p.
Keras Resources PLC (LON:KRS) is climbing higher after a positive update on a US mine.
The company said that construction of the processing plant at the Diamond Creek organic phosphate mine in Utah had been completed and commissioning had commenced.
It said: “Once at steady-state operational capacity, which is expected to be achieved by the end of June, the plant will produce a range of premium organic phosphate products for sale directly into the growing North American organic fertiliser market.”
Diamond Creek is owned by the company’s 51% subsidiary, Falcon Isle Holdings.
Keras chief executive Russell Lamming said: “Diamond Creek is the one of the highest-grade organic phosphate mines in the US and installing this plant will enable us to extract maximum value and sell a range of fully certified, high-quality products into a growing organic fertiliser market..”
Keras is up 9.52% at 0.12p.
10.48am: Clinigen crashes by 25% after COVID-19 hits earnings
Shares in Clinigen Group PLC (LON: CLIN) are heading for their worst day on record.
The pharmaceutical firm has lost a quarter of its value after it said the fallout from COVID-19 would hit its profits.
It said demand for kidney and skin cancer treatment Proleukin (where it acquired global rights from Novaritis) had been significantly weaker than expected in recent months.This was due to the global reduction in hospital-based oncology treatments and delays to clinical trials.
It expects this reduced level of demand to remain until “revitalisation efforts into new indications alongside novel cell therapies are successful and normal Hospital and Cancer Centre Services have resumed.”
So while revenues for the full year are expected to be in line with previous guidance, adjusted earnings are likely to be within a range of £114mln-£117mln, below forecasts.
Chief executive Shaun Chilton said: “COVID-19 has continued to have a significant impact on our business as it has for many other companies operating in the clinical trial and hospital-based products area.
“Due to the strength of our underlying business, the simplification of our operating model and continued high-level of business wins in Services, we are optimistic about the future and anticipate a return to double digit growth in the next financial year.”
But that optimism has not prevented a 25.12% or 210p fall in the shares to 626p.
9.28am: Miner files hefty claim over Polish projects
Prairie Mining Ltd (LON:PDZ) has seen its shares surge as it unveiled an £806mln claim against the Republic of Poland.
To put that in context its market capitalisation before the announcement was just £29.69mln.
It is markedly higher now, with the shares up 42.31% or 5.5p at 18.5p having earlier been as high as 22p.
The Australia-headquartered coal company alleges that the Republic of Poland breached its obligations in blocking the development of its Jan Karski and Debiensko mines, thus depriving it of the entire value of its investments in Poland.
The £806mln includes an assessment of the value of lost profits as well as damages and accrued interest.
8.56am: IT group climbs after resilient performance
Shares in CloudCoCo Group PLC (LON:CLCO) have gone sky-high after it unveiled improved results and took steps towards making acquisitions.
The IT and communications specialist said revenues for the six months to the end of March slipped from £4.43mln a year ago to £4.14mln but trading profits up 435%.
Overall pretax losses fell from £1.57mln to £0.67mln.
Chief executive Mark Halpin said: “We have delivered a resilient performance in the period, with notable revenue and total contract value increases on the second half of 2020, despite the continued impact of COVID-19on the trading environment.
“The business is in good health, both operationally and in the pipeline of opportunities ahead of us. There will continue to be challenges to overcome, but we will meet them head on and remain confident of making further progress in the second half and beyond.”
It has appointed Darron Giddens as finance director to replace Mike Lacey who has stepped down for personal reasons.
It also has a new strategic consultant in Nigel Redwood, the former chief executive of AIM-listed Nasstar.
Halpin said: “Nigel has a track record of accelerating growth – particularly in the listed IT managed services space – and recognises the importance of fostering a strong company ethos and culture. I have no doubt his counsel will prove invaluable as we deliver our organic growth initiatives and begin to explore the possibility of M&A.”
CloudCoCo has climbed 17.24% or 0.25p to 1.7p.
Also heading higher is Blancco Technology Group PLC (LON:BLTG).
The mobile device diagnostics specialist said revenues had grown significantly in the second half of the year despite the effect of a strong pound, and it expected operating profit and cash to be significantly above expectations.
Its shares are 3.7% better at 280p.
Proactive news headlines
Seeing Machines Limited (LON:SEE) said it has been appointed by software firm CAE Australia to integrate its precision eye-tracking technology for a customer in the Australian defence industry.
Walls & Futures REIT PLC (LON:WAFR), an ethical housing investor and developer, said it has joined P1 Investment Management’s Net-Zero Carbon target as part of its Ethical Investment Policy rollout.
Ncondezi Energy Ltd (LON:NCCL) said Ncondezi Green Power, its renewable energy subsidiary, and Captive Power Ltd have signed a relationship agreement giving Ncondezi first refusal to fund up to US$5.5mln of commercial and industrial solar and battery storage projects in Mozambique.
Sativa Wellness Group Inc (LON:SWEL) said new research suggests cannabinoids may be able to treat inflammatory lung disease. A King’s College London research paper has been published which includes the results of an investigation on the potential therapeutic use of cannabinoids for the treatment of respiratory diseases.
MGC Pharmaceuticals Ltd (ASX:MXC, LON:MXC) has appointed David Lim as joint company secretary with immediate effect, bringing over 15 years of experience working for ASX-listed companies.
Avation PLC (LON:AVAP) has updated investors on its current revenue collection and cash situation as it supported its customers through the effects of the coronavirus (COVID-19) pandemic.
Cornish Metals Inc. (LON:CUSN, TSX-V:CUSN) announced an increase in resource estimates at the iconic South Crofty tin mine in Cornwall. An updated mineral resource estimate (MRE) showed a 10% increase in indicated resources in both the lower mine and upper mine areas and an almost 130% gain in inferred resources at the lower mine.
Custodian REIT PLC (LON:CREI) said it acquired five industrial units on Knowsley Business Park in Liverpool for £3.5mln. The units, which cover a total area of 40,419 sq ft, are occupied by Portakabin, Green Thumb, Central Electrical Armature and Med Imaging.
Sirius Real Estate Limited (LON:SRE) said it has appointed Joanne Kenrick to the board as an independent non-executive director with effect from September 1.
SIMEC Atlantis Energy Ltd (LON:SAE) provided an update for investors on Tuesday on the status of its major shareholder.
Remote Monitored Systems PLC’s (LON:RMS) executive chairman Antony Legge said he is looking forward to “several positive developments in the coming months”.
TomCo Energy PLC’s (LON:TOM) joint venture Greenfield Energy has entered a deal to acquire a site in Utah.
Empire Metals Limited (LON:EEE) announced that managing director Shaun Bunn, non-executive director Mike Struthers and finance director Greg Kuenzel will provide a live presentation via the Investor Meet Company platform on Thursday 17 June 2021 at 10:00am BST.
Arecor Therapeutics PLC (LON:AREC) notified that three directors had bought shares in the company.
Dr Andrew Richards, non-executive chairman, purchased 12,500 at a price of 242.7p; Christine Soden, non-executive director, also bought 12,500 shares at the same price; and Jeremy Morgan, non-executive director, purchased 20,503 shares at a price of 242.5p apiece.
Condor Gold PLC (LON:CNR, TSX:COG) announced that with immediate effect it has appointed H&P Advisory Limited as joint broker to the company. Mark Child, Chairman and CEO said: “On behalf of the board I am delighted to appoint Hannam & Partners as a joint broker to the company at an exciting time when Condor has purchased a complete new SAG Mill Package, significantly advanced several Feasibility Level engineering designs and studies, commenced site clearance and preparation and is heading towards gold production on Condor’s fully permitted La India Project.”
Oriole Resources PLC (LON:ORR) said company management will be undertaking a pre-recorded shareholder presentation and Q&A session ahead of the Company’s annual general meeting on 23 June 2021. The Company requests that all shareholder questions be submitted to [email protected] on or before 11 June 2021. The recording will subsequently be made available on the Company’s website on or around 16 June.