Ascent Resources climbs as formal sale process started after producing revenues in 2017

By Tom Howard / April 17, 2018 / www.proactiveinvestors.co.uk / Article Link

Ascent Resources Plc (LON:AST) was a strong gainer in late afternoon trading after the oil & gas firm said it has begun a formal sale process for selling the company having gone from "explorers to producers" in 2017.

The AIM-listed group's full-year results showed it produced revenue for the first time since 2013 and significantly reduced its debt during the year.

Ascent also said it is looking for a partner with which to work to "maximise opportunites" to develop its existing assets, but also declared it is open to offers for the company.

Exploration boosts for Sunrise and Ironridge

Another resource minnow heading north was  Sunrise Resources Plc (LON:SRES) shares in which gained 12% at 0.14p after an exploration update on the Junction project in Nevada, in which Sunrise has an interest.

VR Resources Ltd (CVE:VRR) revealed that that surface exploration is in progress at its Junction copper-silver property in north-western Nevada.

A gravity survey has been completed and a large, high contrast gravity anomaly has confirmed the down-dip potential of copper-silver veins at the Denio Summit target in the western part of the property.

And Ironridge Resources Ltd (LON:IRR) shares rose 4.4% to 23.75p after the miner said approvals have now been received for it to commence drilling at the Ewoyaa lithium project in Ghana and, accordingly, earthworks to allow drill access and for drill pads are now underway.

The plan is to undertake approximately 7,000 metres of reverse circulation and diamond drilling. That could amount to up to 60 holes over two phases, with drilling expected to commence late April to early May.

Strong results lift Christie Group

Business services provider Christie Group PLC (LON:CTG) was among the top risers in London after reporting a strong set of full-year results.

The group, which struggled in 2016, saw operating profits more than treble to ?3.8mln (2016: ?1.1mln) in the year ended 31 December 2017, on increased revenues of ?71.6mln (2016: ?64.5mln).

"2017 saw an encouraging rebound in performance following a disrupted 2016," said chairman and chief executive David Rugg.

"Looking ahead, 2018 has started well. We have a good volume of client M&A transactions in progress. As a result, we anticipate our first half performance will be significantly ahead of last year's first half performance."

Investors toast investment plans at Majestic Wines

Investors poured into Majestic Wine PLC (LON:MJW) on Tuesday after the wine retailer announced big investment plans to try to bring in new customers.

The AIM-listed firm already spends around ?12mln on new customer acquisition, but it plans to up this by another ?9-12mln as it looks to hit its 2019 sales target of ?500mln, which it noted was on track.

Majestic said it expects to see significant benefits from the investment from 2021 and beyond, although it did warn that next year's earnings would be dented by around ?2-3mln.

That didn't bother investors though, with shares surging 8.5% to 431p.

Findel jumps as it upgrades full-year guidance

Findel PLC (LON:FDL) saw its shares jump in lunchtime trading Tuesday after it expected full-year performance to be at the "upper end of market expectations".

The retailer said strong growth in customers and sales at its Express Gifts shopping service, particularly during the Christmas period, had been a key driver in its performance for the year.

While trading in its fourth quarter was quieter, mainly due to changes in marketing activity, the business had benefited from stronger collections and recoveries from its credit receivables to contribute towards overall operating profit growth of around 20% for the year.

The group also said the operational turnaround of Findel Education was progressing well, with its core UK brands seeing sales decline narrow to 2% in the second half after a decline of 10% in the first. Shares rose 5.6% to 265p.

JD Sports and AB Foods perk up retailers

It will likely have been a while since you heard this statement: two UK retailers have reported solid results.

As we've all been made well aware of in recent months, high street chains are struggling. Chief among their issues is the rise of online shopping, while cash-strapped consumers are also spending less.

Maplin and Toys R Us have both succumbed to the pressures, while several others have sought help to keep their heads above the water.

There have no such problems for JD Sports Fashion PLC (LON:JD.) or Associated British Food PLC's (LON:ABF) value fashion chain Primark, though.

READ: JD sprints higher as it reports record profits

READ: AB Foods edges higher after Primark's "remarkable" UK performance

JD boasted record full-year profits of ?294.5mln as sales soared by a third to ?3.16bn, with the company benefitting from the increasingly popular 'athleisure' trend.

As for Primark, the clothing chain saw UK like-for-like sales rise by 3% in the half-year to March 3 - a performance which it called "remarkable", given the challenging industry conditions and bad weather.

Both JD and AB Foods are among London's risers this morning, with JD shares trading 4.3% higher at 367.9p, while AB Foods is up 2.8% to ?26.56.

The latter has also helped out fellow high street clothing chains Next PLC (LON:NXT) (up 1.7% to ?51.50) and Marks and Spencer Group PLC (LON:MKS) (up 1.1% to 279.4p).

Proactive news headlines:

PowerHouse Energy Group PLC (LON:PHE) is to make its hydrogen-from-waste technology available to bus fleet operators in Bulgaria and Romania.Tresoil, a Bucharest-energy group, will sell buses powered by the Powerhouse's DMG system and manufactured by Wrightbus, a specialist in hydrogen vehicles.

Tertiary Minerals PLC (LON:TYM) remains in constructive dialogue with the relevant Swedish authorities with regard to the granting of a mine permit for its Storuman fluorspar project. Detailed additional environmental analysis has now been submitted to the Mines Inspectorate.

Skin health specialist SkinBioTherapeutics PLC (LON:SBTX) said the 'cream' formulation of its SkinBiotix technology has passed effectiveness studies in models of skin.

Approvals have now been received for Ironridge Resources Ltd (LON:IRR) to commence drilling at the Ewoyaa lithium project in Ghana and, accordingly, earthworks to allow drill access and for drill pads are now underway. The plan is to undertake approximately 7,000 metres of reverse circulation and diamond drilling. That could amount to up to 60 holes over two phases, with drilling expected to commence late April to early May.

Falcon Oil & Gas Ltd (LON:FOG, CVE:FO) is now clear to get to work with its major shale discovery in Australia's Northern Territory after the regional government has lifted its moratorium on hydraulic fracturing. It is long awaited good news for the junior oil and gas firm, which has essentially been on hiatus whilst the suspension was in place

PCG Entertainment PLC (LON:PCGE) has provided an update on progress in its media, gambling and environmental technologies focuses in the Chinese market.

ImmuPharma PLC (LON:IMM) said it believes there is a "significant opportunity" for its drug Lupuzor, used to treat autoimmune disease lupus, following the release of top-line results from a Phase III trial. The data revealed Lupuzor was more effective than the placebo (52.5% versus 44.6%). But because the response rate for those taking the non-active medication plus the "standard of care" was so high, the end-point of the study was not achieved. That 'end-point' was a statistically significant beneficial impact from Lupuzor.

Obtala Limited (LON:OBT) has said it will fully review the potential financial implications of a rulling by the Ministry of Land, Environment and Rural Development (MITADER) in Mozambique on the exploitation and export of endangered species of timber.

Sirius Minerals PLC (LON:SXX) has told investors that its debt-for-equity offer has received acceptances accounting for US$63.8mln. The UK mine developer, earlier this month, offered holders of its convertible bonds the opportunity to make an early switch to equity, offering them additional incentive shares along with the due equity.

App distributor appScatter Group PLC (LON:APPS) is to market its platform to customers of ironSource, one of Israel's fastest growing companies. Appscatter's platform cover more than more than 75 app stores and this deal will see it marketed to ironSource's community.

Jubilee Metals PLC (LON:JLP) has boosted quarterly production of platinum group metals at its Hernic project in South Africa by 30%. Revenues and operational earnings also improved, while unit costs were kept at an impressively low US$434 per ounce of PGMs.

Alliance Pharma PLC (LON:APH) is selling the Chinese rights to Forceval, a micro-nutrient supplement used in pregnancy, for ?2.9mln. It is doing so via the disposal of its 60% stake in a company called Unigreg Limited to Pacific Glory Development.

Amryt Pharma PLC (LON:AMYT) saw sales of its cholesterol treatment Lojuxta surge in 2017 and is confident of further sales growth this year. As announced in March, revenues from Lojuxta (lomitapide), which treats a rare life-threatening disorder that causes abnormally high levels of "bad" cholesterol, contributed ?,?11.9mln in 2017, as against ?,?800,000 or so in 2016, when the company only had the rights to the treatment for one month.

Background check services and technology provider ClearStar Inc (LON:CLSU) is set for a "pivotal" 2018 after reporting solid results for the year just gone. The flexibility of the labour market continues to expand and that is increasing the demand for ClearStar's direct services and is providing new opportunities for revenue generation.

Union Jack Oil PLC (LON:UJO) has told investors that its 20%-owned Fiskerton Airfield Oilfield project has resumed production. Meanwhile, new efforts to secure planning permission for the Wressle field are also advancing. The onshore oil junior has a 15% stake in Wressle, where operator Egdon is currently conducting field work to address issues raised in the previously unsuccessful planning application - they relate to ground water and hydrological risk.

MySQUAR Limited (LON:MYSQ), the Myanmar-language social media, entertainment and payments platform whose principal activity is to design, develop and commercialise Myanmar-focused internet-based mobile applications, announced that it has appointed Daniel Stewart and Company as its joint broker with immediate effect. SP Angel Corporate Finance will remain as the group's joint broker.

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