The blue chip FTSE 100 index remaining above initial 2021 resistance continues to underline the overall strength of the UK stock market. This is particularly so given the way that the FTSE 100 traditionally never trades even a fraction of a point higher than a stiff upper lip might dictate.
Naysayer target UK Oil & Gas (UKOG) continued to provide a pie in the face to the bears, as well as proving how canny it was for the company to diversify away from just being a Gatwick Gusher play. Shares of the exploration and production company rose 62% after this week’s announcement that the Turkish Ministry of Energy and Natural Resources has granted UKOG Turkey and Aladdin Middle East formal consent to drill the forthcoming Basur-3 appraisal well, which contains the potentially significant Basur-Resan oil discovery. Presumably UKOG’s vast UK assets are now in the market cap for free…
Shares of Chaarat Gold (CGH) gapped up nearly 7% as the AIM-quoted gold mining company with assets in the Kyrgyz Republic and Armenia, published its audited financial results for the year ended 31 December 2020. Here revenue was up 12.5% in 2020 to $76.0 million (2019: $68.1 million), reflecting increased production and the recovery in commodity prices in the second half of the year. But it was arguably the positive EBITDA swing to $9.3 million in 2020 (2019: loss of $12.8 million) and operating profit of $1.9 million (2019: loss of $18.4 million), in a pandemic affected year that were the real standout. Chaarat also exceeded its production guidance of 55koz by 6% – again, quite an achievement given the difficult fundamental backdrop.
Love Hemp Group (LIFE) became one of the day’s most followed stocks in the wake of a successful fundraise of over £5 million, a global marketing programme, and an intention to move to the Official List of the London Stock Exchange during 2021. CEO Tony Calamita said that the funding would support Love Hemp as it implemented its marketing strategy to become a global leader in the CBD industry, as well as through strategic partnerships such as the recently announced, exclusive deal with the UFC.
Sticking with the Aquis market and we have seen digital asset plays such as KR1 (KR1), and Coinsilium (COIN) soar in the recent past. Of course, on the main market we have seen crypto miner Argo Blockchain (ARB) become one of the stocks of the year to date. A company on Aquis looking to follow in its footsteps, and one which is already a financial NFT play – Valereum Blockchain (VLRM) announced a new initiative. VLRM, A cryptocurrency, decentralized finance (DeFi), and blockchain technology venture builder, said it has engaged specialist North American consultants, Kyudoka Capital Corporation to provide strategic technology advisory services to Valereum for its pipeline of blockchain and DeFi opportunities. Kyudoka will aid Valereum in building expandable cryptocurrency mining operations and infrastructure, thus meaning it will be following in the footsteps of Argo Blockchain.
It continued to be a case of no news being great news for the share price of Sound Energy (SOU). Here the stock rose another 21%, effectively doubling over the past couple of weeks. Normally, to pour cold water on such a move there is a so called “speeding ticket” / cooling / pie in the face RNS. But it this case, perhaps rather pleasingly from the perspective of the bulls, the passion killer RNS card was already played on March 26th. That said, rather tellingly, at the time the company said that negotiations regarding the proposed micro liquefied natural gas phase 1 development project for the TE-5 Horst at the Tendrara Production Concession continue. Therefore, the door remains open for the longs.
It was two for the price of one as far as the update on sports betting group Low6, from both the small cap listed investment companies who have stakes in the company. Gunsynd (GUN) and Pires (PIRI) were able to reveal that further to the announcement on 15 February 2021, Low6 extended its pre-IPO funding round to allow a well-respected figure in the worldwide gaming industry to invest in Low6 and join its advisory board post-IPO, which was completed as expected. Recently, Low6 has launched the Uber Eats Weekly 7 game and PubWars app. Perhaps key for shareholders of both Gunsynd and Pires, Low6’s IPO still on track for Q2 2021, so a relatively imminent liquidity event remains on the cards.
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