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RNS Hotlist March 7: Abingdon, Argo, GreenX, Marula, Oracle, Saietta, Xtract

This post was written by Zak Mir, a Technical Analyst, Events Host, Presenter, CEO Interviewer and established Market Commentator

Xtract Resources (XTR) updated on the mining study by independent consultants Optimal Mining Solutions (Pty) Ltd to examine the economics of a 20Mpta and 25Mpta open pit operation on the Bushranger Copper-Gold Project in central New South Wales, Australia. Optimal Mining has identified that the economics of the Project can be improved by way of modern ore sorting technology and the full Study will be completed based on further test work already under way on this option. XTR said the initial work by Optimal Mining shows that pre-concentration of ore has the potential to significantly increase cash flows from an open pit operation. On a project with similar grades to Bushranger, pre-concentration of the copper mineralisation reduced the amount of material to be concentrated by over 50%, while retaining 87% of the contained copper metal.
Comment: It has been clear that the market has not appreciated the magnitude of Xtract’s Bushranger Project, and so the intervention of Optimal Mining to make it all the more efficient in terms of the mining process, should boost investor confidence. Xtract are going down the pre-concentrate route, which makes sense since why should it put waste material to the entire processing circuit when it would want only high grade pay ore? This should positively impact on the entire economics of Bushranger.

Marula Mining (AQSE: MARU) an African focused mining and development company, announced the establishment of Muchai Mining (Pvt) Limited, an 80% owned Zimbabwean operating subsidiary of Marula. The company said this positioning of Marula in Zimbabwe aligns seamlessly with its strategy and development plans, as it continues to identify and pursue opportunities that it believes have the potential to deliver value to its shareholders.
Comment: By the latest announcement coming so soon after yesterday’s director buying, we see Marula finessing its already strong position by adding another string to its bow in Zimbabwe.

Abingdon Health (ABDX), an international lateral flow contract development and manufacturing organisation (CDMO), announces the granting of an additional patent for its AppDx® lateral flow smartphone reader. The company said it was pleased to announce the granting of a further patent for its AppDx® smartphone lateral flow reader. Given the expected rapid growth in the lateral flow self-test market it believes the use of smartphone apps, such as AppDx®, will be critical in allowing widespread adoption of lateral flow rapid-testing.
Comment: It is interesting to see how former Covid plays are looking to consolidate their position, not only in the new post pandemic environment, but perhaps to make sure they are well placed should fresh health threats emerge.

GreenX Metals (GRX) announce that it has completed a bookbuild and secured commitments for 12.4 million new ordinary shares at a price of 31p for gross proceeds of approximately £3.9 million from new and existing UK and European investors and some Australian investors. The company said that together with existing cash resources (A$2.6 million as at 31 December 2023), the proceeds of the Placing will help ensure that GreenX retains a strong balance sheet position.
Comment: Given the way that shares of GRX closed at 44.5p yesterday, it is interesting that the placing was at 31p. Ideally, in the wake of the latest fund raising news we shall see the stock hold / recover the placing price relatively quickly.

Saietta Group (SED), the multi-national business, provided an operation and trading update across its core business units. The company said FY 2022/23 revenues are expected to now grow by 40% year on year vs FY 2021/2022 and the outlook for FY 2023/24 indicates further growth of at least 100% year onn year. The revenues for the current financial year incorporate an important change in the joint financing of its Joint Venture in India.
Comment: Saietta’s bumper outlook perhaps illustrates why it has a diehard band of followers on Twitter. Indeed, one could say that if the latest update by the company does not turn around the recent bear run in the shares, holders of the stock can justifiably count themselves as unfortunate.

Oracle Power (ORCP), a developer of green hydrogen production, announced a strategic MOU with China Electric Power and Technology Co., Ltd to potentially develop, finance, construct, operate and maintain Oracle Energy’s Green Hydrogen Project in Thatta, Sindh Province, Pakistan. His Highness Sheikh Al Maktoum said that having acquired the required land to build the project late in 2022, and having made significant progress in planning the construction of the Green Hydrogen Production facility with Thyssenkrupp, Oracle Energy is looking to fast-track the development of the Project.
Comment: It is an honour indeed to be treated to the words of HH Al Maktoum, underlining the merits of the Green Hydrogen project, and remind the market that ORCP is teamed up with industry giant Thyssenkrupp.

Argo Blockchain (ARB), a cryptocurrency miner, provided an operational update for February 2023. During the month of February, Argo mined 162 Bitcoin. This is an increase of 7% over the 5.4 BTC per day produced in January 2023. The company said it was able to achieve this increase in daily BTC production despite a 10% increase in average network difficulty in February compared to the prior month.
Comment: After the recent travails at the company, the latest RNS must come as something of a relief to shareholders.

Disclaimer: is a purely journalistic website – Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written or said here.





Zak Mir

Zak Mir

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