5 Companies, I Think, will Outperform in H2 of 2018
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5 Companies, I Think, will Outperform in H2 of 2018

THE CONTENT OF THIS BLOG / WEBSITE (OR CONTENT ASSOCIATED WITH IT) IS NOT INTENDED AS INVESTMENT ADVICE, IT IS FOR INFORMATION PURPOSES ONLY. YOU SHOULD TAKE PROFESSIONAL FINANCIAL ADVICE IN CONNECTION WITH, OR INDEPENDENTLY RESEARCH AND VERIFY, ANY INFORMATION THAT YOU FIND ON THIS BLOG / WEBSITE AND WISH TO RELY UPON, WHETHER FOR THE PURPOSE OF MAKING AN INVESTMENT DECISION OR OTHERWISE. WE ARE NOT REGULATED UNDER UK FINANCIAL SERVICES LAW. THE AUTHOR OF THIS BLOG MAY HOLD AN INTEREST IN THE STOCK FEATURED.

5 Companies, I Think, will Outperform in H2 of 2018

These are ordered in size, from the smallest market capitalisation to the largest.

FERRUM CRESCENT #FCR (soon to Europa Metals #EUZ)
Share Price: 0.0775p
Market Capitalisation: £3.76m

Ferrum Crescent is an AIM listed exploration company with a lead-zinc project located in Northern Spain.

On 30th January 2018 they completed a maiden independent JORC (2012) resource estimate showing 16Mt@6.9% of zinc equivalent (including lead credits) and 25 grams per tonne of silver.

UPCOMING MILESTONE

Ferrum Crescent are just about to undergo a name change (to Europa Metals #EUZ) which will underline their refined strategy, identified by the restructured board, to unlock value in their zinc-lead-silver asset in Spain. They have just raised £1m (gross) to do this and the steps to realising this value are as follows:

1. Extension drilling

2. Metallurgical Work and Results

3. Pre-Economic Assessment (PEA)

The PEA should reveal:

Proposed production rate ie amount of tonnes of zinc, lead and ounces of silver to be produced per year.

Proposed Life of Mine (LoM).

Net Present Value (NPV).

Free cash flow generation during Life of Mine (LoM).

Internal Rate of Return (IRR).

Capital Expenditure for the construction of the mining operation, processing plant and the associated infrastructure.

Payback period (in years) for this funding.

The majority of this work should be completed before the end of 2018, unlocking a lot of unrealised, in ground, value.

At current metal prices, Toral, their zinc-lead-silver asset in Spain has in excess of $3bn of metal in the ground.

To read my previous blog on Ferrum Crescent click here

To add FERRUM CRESCENT #FCR to your watchlist click here and tap the, “Follow”, button.

 

CORA GOLD #CORA 
Share Price: 14.5P
Market Capitalisation: £7.97M

Cora Gold is a new gold exploration company focused on two world class gold regions in Mali and Senegal in West Africa. Their current focus, in order of priority, is Sanankoro and then Tekeledougou.

Historical exploration has resulted in the highly prospective Sanankoro Gold Discovery, in addition to multiple, high potential, drill ready gold targets within its broader portfolio.

Cora Gold’s primary focus is on further developing Sanankoro in the Yanfolila Gold Belt (South Mali), which Cora Gold believes has the potential for a standalone mine development.

SANANKORO

On 29th January Cora Gold released the, “the first results from stage 1 of its on-going drilling programme at its flagship Sanankoro Gold Discovery in southern Mali”, which included, “extremely encouraging high-grade gold intercepts reported of up to 52.80 grams per tonne (“g/t”).”

From their Final Results for the year ended 31 December 2017 released on 21st May 2018, CEO Jonathan Forster:
“At Sanankoro we successfully completed Stages 1 and 2 of the drill programme within six months of IPO and have confirmed a large structure of >14km which has the potential to be a >1 million ounce standalone mine.”

TEKELEDOUGOU

On a recent podcast (see below) Hayden Locke, Cora’s Business Development Manager said, “This initial result compares very favourably to what is one of the best gold discoveries in 10 years in Mali”.

From their Final Results for the year ended 31 December 2017 released on 21st May 2018, CEO Jonathan Forster:
“At Tekeledougou, we have discovered two new large-scale gold zones with early cashflow potential.”

UPCOMING MILESTONE

Further drill activity and drill results are expected on exisitng and new drill targets. It’s also worth reading my blog on Cora below as they have some substantial shareholders, one of whom recently increased their holding.

To read my previous blog on Cora Gold #CORA click here

To add CORA GOLD #CORA to your Vox Markets Watchlist, click here and tap the, “Follow”, button

 

JANGADA MINES #JAN
Share Price: 4.2P
Market Capitalisation: £8.3M


Jangada Mines is a natural resources company developing South America’s largest and most advanced platinum group metals project in Pedra Branca, Brazil.

It’s located 280 km from the port city of Fortaleza in the northeast of Brazil and holding three mining licences and 43 exploration licences over an area of 50,000 hectares.

Following the evaluation of the Santo Amaro prospect, the JORC (2012) compliant resource has been increased to approximately 1.45 million ounces of PGM+Au at a grade of 1.3g/t PGM+Au (2.5 g/t Pd Eq), 140 million pounds of nickel, 26 million pounds of copper and 6.7 million pounds of cobalt.

Importantly, the company has six more known targets across the licence providing the potential for additional major upside in future resource figures.

On 31st October 2017 their scoping study revealed:

An internal Rate of Return (IRR) of 80% at a production rate of 34,000 ounces of PGM+Au per annum.

An NPV of US$158.4m at a 10% discount rate.

BUT this resource has now been upgraded by 50%.

So we can assume this NPV would now be approximately $237.6m.

So this 50% upgrade could mean their original assumed production rate of 34,000 ounces would become 51,000 ounces produced per year. If we take the PGM price at $900 per gram, this would generate revenue of $45.9m per annum.

At an 80% IRR this would create $36.7m (£27.25m) of free cash flow a year.

UPCOMING MILESTONE

Jangada have initiated a pre-feasibility study, which when completed will demonstrate the economics around their resource. This was expected to be completed in Q1 of 2018 so it’s overdue. This should be followed by trial mining. There is an issue, which means a cheaper entry price could be achieved. Read my blog (below) to find out what it is.

To read my previous blog on Jangada Mines #JAN click here

To add JANGADA MINES #JAN to your Vox Markets Watchlist, click here and tap the, “Follow”, button

 

UNITED OIL & GAS #UOG
Share Price: 4.9p
Market Capitalisation: £14.26m


United Oil & Gas plc (UOG) is listed on the main market of the London Stock Exchange. United was established to explore, appraise and develop low risk assets in Europe and North Africa and to develop higher risk, higher impact exploration projects in Latin America and Africa.

ANOTHER LICENCE

On 24th May 2018, United Oil & Gas were provisionally awarded two blocks, including an oil discovery, in the UK North Sea.

Highlights:

· Blocks 15/18d and 15/19b provisionally awarded to United in UK 30th Licensing Round

· Award includes Crown oil discovery, which could contain up to 16 million barrels of oil

· Forms part of United’s strategy to build a portfolio of high grade targets with near term activity

United Oil & Gas’s portfolio now includes a blend of commercial discoveries, appraisal projects and high impact exploration.

Their broker Optiva Securites has a target of 13.5p (currently 4.8P) and this doesn’t include the Crown discovery (above) nor does it include their Walton-Morant licence in Jamaica, which their broker says could be worth, “several multiples of the current share price.”

UPCOMING MILESTONES

There’s 2 of them:

1. They are going to be drilling an appraisal well on Colter (P1918 LICENCE) in either Q2 or Q3 2018. Read my blog below to find out the potential of this well.

2. On 14th May April UOG announced, the completion of 3D seismic survey on Tullow Oil-operated licence, offshore Jamaica.

They expect, “Fast-tracked data expected mid-July 2018 with the final data-sets due later in the year”

To read my previous blog on United Oil & Gas #UOG click here

To add UNITED OIL & GAS #UOG to your Vox Markets Watchlist, click here and tap the, “Follow”, button 

 

C4X DISCOVERY HOLDINGS #C4XD
Share Price: 93.50P
Market Capitalisation: £43.5M


C4X Discovery aims to become the world’s most productive drug discovery engine by exploiting cutting edge technologies to design and create best-in-class small-molecule candidates targeting a range of high value therapeutic areas.

The company’s goal is to drive returns through early-stage revenue-generating deals with the pharmaceutical industry.

WHAT’S DIFFERENT ABOUT C4XD?

Typical small cap biotech or pharmaceutical companies tend to focus on one lead drug and spend a lot of time and money progressing it through clinical trials to commerciality.

The drug-development process will typically proceed through three phases over many years.

If the drug successfully passes through Phases I, II, and III, it will usually be approved by the national regulatory authority for use in the general population.

C4XD don’t concentrate on just one drug, they currently have a drug asset portfolio consisting of TEN programmes. In 4-5 years time they plan to have between 30 – 40 pre-clincal programmes going on at anyone time.

UPCOMING MILESTONE

They announced a $294m licencing deal with Indivior on 29th March. At the moment C4XD are building their portfolio. Typically they intend to have one asset up for licencing for every 10 they have in development. They currently have 10 so one could assume this years big annoucement has been made. So it maybe a while until there next big announcement but if it comes earlier and it’s of a similar size to their Indivior deal, then a serious re-rate in the share price can be expected.

To read my previous blog on C4X Discovery Holdings click here

To add C4X DISCOVERY HOLDINGS #C4XD to your Vox Markets Watchlist, click here and tap the, “Follow”, button

THE CONTENT OF THIS BLOG / WEBSITE (OR CONTENT ASSOCIATED WITH IT) IS NOT INTENDED AS INVESTMENT ADVICE, IT IS FOR INFORMATION PURPOSES ONLY. YOU SHOULD TAKE PROFESSIONAL FINANCIAL ADVICE IN CONNECTION WITH, OR INDEPENDENTLY RESEARCH AND VERIFY, ANY INFORMATION THAT YOU FIND ON THIS BLOG / WEBSITE AND WISH TO RELY UPON, WHETHER FOR THE PURPOSE OF MAKING AN INVESTMENT DECISION OR OTHERWISE. WE ARE NOT REGULATED UNDER UK FINANCIAL SERVICES LAW. THE AUTHOR OF THIS BLOG MAY HOLD AN INTEREST IN THE STOCK FEATURED.

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upl-small

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To read my blog post on Upland Resources #UPL click here

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2 Overlooked Companies, That Could Be About to Release Signficant News

THE CONTENT OF THIS BLOG / WEBSITE (OR CONTENT ASSOCIATED WITH IT) IS NOT INTENDED AS INVESTMENT ADVICE, IT IS FOR INFORMATION PURPOSES ONLY. YOU SHOULD TAKE PROFESSIONAL FINANCIAL ADVICE IN CONNECTION WITH, OR INDEPENDENTLY RESEARCH AND VERIFY, ANY INFORMATION THAT YOU FIND ON THIS BLOG / WEBSITE AND WISH TO RELY UPON, WHETHER FOR THE PURPOSE OF MAKING AN INVESTMENT DECISION OR OTHERWISE. WE ARE NOT REGULATED UNDER UK FINANCIAL SERVICES LAW. THE AUTHOR OF THIS BLOG MAY HOLD AN INTEREST IN THE STOCK FEATURED.

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Mentioned in this post

C4XD
C4X Discovery Holdings
CORA
Cora Gold Limited (DI)
JAN
Jangada Mines
UOG
United Oil & Gas