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MOVERS OF TUESDAY 19 JANUARY 2021

16:30, 19th January 2021
Francesca Morgan
Market Report
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Indivior (INDV FOLLOW) shares rise again at 9.23% to 130.4p after raising profit guidance  

The global pharmaceutical firm raised its profit and sales expectations for the year ended 31 December 2020 on Friday after its prescription medicine, Suboxone, which is a treatment for opioid dependence, continues to demonstrate growth against its competitors.  

The company outlined to investors that total net revenue is now expected to be in the range of $645m- $650m, compared to the group’s previous market guidance of $595m to $620m.  

It said SUBLOCADE® is selling ahead of forecasts with net revenue between $128-$130m (guidance of $120-$125m), representing preliminary 4Q20 SUBLOCADE® net revenue growth of 12% to 18% versus Q3 2020 reported SUBLOCADE® net revenue of $33m.  

The company said that SUBOXONE® sales had remained resilient through to the end of FY 2020, in part benefitting from modest stocking activity in the U.S. during the fourth quarter.  

INDV price chart

Microsaic Systems (MSYS FOLLOW) shares soared 100.00% to 0.4pfollowing £5 million raise  

The high technology company announced that it has, through Turner Pope Investments, conditionally raised £5 million via an oversubscribed placing of 5.00 billion new shares.  

The company, which develops point-of-need mass spectrometers designed to improve the efficiency of chemical and biological workflows, said the proceeds from the raise will fund the commercialisation of Microsaic’s current miniaturised products and services. 

It will also provide funds to develop its product and service portfolio and fund general working capital purposes to drive increased revenues by collaborations and revenue sharing opportunities that build and extend its existing sales, marketing and distribution channels. 

MSYS price chart

Ironridge Resources (IRR FOLLOW) shares jump 32.41% to 19.5p as scoping study highlights Ewoyaa lithium project as ‘industry-leading asset’   

The African-focused minerals exploration firm announced news after completing a Scoping Study on the Ewoyaa Lithium Project in Ghana, confirming it is ‘an industry-leading asset.’ 

The study supports the case for a two million tonnes per annum production operation with life of mine revenues exceeding US$1.55bn, and significant potential to extend mine life. 

During an eight-year operation, the mine is expected to produce an average of 295,000 tonnes per year of 6% Li2O spodumene concentrate, with the internal rate or return (IRR) of 125% over 8 years. The group added that the capital cost estimate for the mine is $68m. 

"Today's landmark update regarding the Company's exceptional Scoping Study confirms that the Ewoyaa Lithium Project is an industry-leading asset and transformational for IronRidge. 

"The Study outlines a robust 2.0Mtpa operation which can deliver excellent cash flows, a very quick payback and a pre-tax NPV of over $0.5bn from a modest 8-year operation, producing a coarse, premium DMS concentrate product,” siad CEO, Vincent Mascolo. 

IRR price chart

Alumasc Group (ALU FOLLOW) shares rose 22.47% to 139p after trading update indicates an ‘encouraging performance’  

In a trading update for the six months ended 31 December 2020, the premium building products, systems, and solutions group reported “a most encouraging performance.” 

The group reported a strong performance in Q1 as revenue increased 11% from 2019 to £45.6m while it achieved record profit for the period with PBT rising from £2.3m to £6.0m. 

Cash generation was also reported as coming in ‘strong’ during the group’s first half, with net bank debt reducing from £4.3m as at 30 June 2020 to £0.2m as at 31 December 2020. 

CEO, Paul Hooper, said, “Overall, this has been a most encouraging performance by Alumasc in the first half and there is an excellent platform to deliver sustainable shareholder value.” 

Hooper said, "It is very encouraging to see Alumasc's achievement of a double digit growth in revenues and also a double digit return on sales and H1 has absolutely shown the great potential for the Group. In light of the businesses' momentum and strong cash conversion, a resumption of Alumasc's previous dividend policy is being considered by the Board." 

ALU price chart

John Wood Group (WG. FOLLOW) shares fell 5.13% to 331.1p as group announces new partnership  

The international energy services company announced today that it has been hired by Centrica’s Spirit Energy to deliver ‘late-life solutions’ to the Morecambe Bay gas fields. The group stated that Morecambe Bay gas field is one of the UK's largest gas accumulations. 

Although shares fell during Tuesday afternoon trading, the stock has increased by over 130% in value since the beginning of April 2020 from 143p to open this morning at 339.3p. 

The five-year consolidated services contract is valued at $130m and will see Wood extend field life, lower costs, and reduce late life carbon intensity across the Hub's offshore assets in the East Irish Sea and the Barrow onshore gas terminal on the northwest coast of England. 

President of Operations for Europe, Middle East and Africa, Craig Shanaghey, said, "Our shared ambition is to leverage the greatest value from the Morecambe Hub in its late life phase, by focusing on driving down operational costs and creating opportunities to extend field life." 

John Cowie, Morecambe Hub Asset Director at Spirit Energy, commented, “The Morecambe Hub has produced gas for the UK for more than 30 years, and remains a key asset in our portfolio as we continue to maximise economic recovery from the area.” 

He added, “There is still more we can do to extend Morecambe's field life while reducing its emissions and contribute to the UK's Net Zero targets, and we look forward to working with Wood on both of these goals." 

WG. price chart

 

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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