It was certainly a fascinating week on the London stock market, one which was clearly looking over its shoulder regarding the Reddit Army phenomenon, even as the mainstream media laughed at “amateur” investors allegedly losing as Gamestop (GME) shares fell. Over here, as one might suspect, things were rather more low key. But the battle between the allies and the axis powers seemed to be centred around vertically integrated CBD specialist, Zoetic International (ZOE). Interestingly enough, having been on the receiving end of a single figure share price bear “dossier” price target, the shares rose for the second consecutive day. Rather than falling 90%, Zoetic shares are now up 30% from Wednesday’s 63p post short attack low. In addition, sentiment was such amongst traders that their anti-shorting sentiment was such they were prepared to buy and hold the stock in protest. The publicity associated with the whole affair has also apparently been attracted institutional interest to Zoetic.
Xtract Resources (XTR) has started 2021 as an exploration group which has certainly been transformed in the wake of last year’s Bushranger acquisition, one which has changed its shareholder base to pivot towards professional investors. This point was underlined to end the week with the update from the now near legendary Hole BRDD-21-002. Xtract said that mineralisation occurred over a considerably greater width than anticipated in the form of disseminated and fracture-fill chalcopyrite, accompanied by pyrrhotite and pyrite, within a variably altered porphyry copper-gold system. Shares of Xtract rose another 11%, continuing the recent run of gains in the stock, alas without the recent “daily” podcasts from the company’s Executive Chairman, Colin Bird.
Speculative play of the day was arguably Tower Resources (TRP) with many traders chart watching to see how the stock closed relative to the main 0.5p resistance of recent months. In the end the 0.51p close was enough to cheer punters, with regard to a company which has described itself as “drill ready” in Cameroon and is clearly comfortable cash wise after a £1.25m fundraise at 0.325p. It would appear that the way is clear for Tower Resources to progress both in Cameroon, Namibia and South Africa. Indeed, it is the three pronged aspect to the resources group, along with the perceived smart money entering or already in the stock, which seems to have inspired traders currently.
Something that the stock market is famous for is the slow burn reaction to what may have been a significant or meaningful piece of newsflow. In the case of natural resources and power project developer Oracle Power (ORCP), the past couple of weeks seem pivotal. The end of last month witnessed CEO Naheed Memon take a 3% stake in the company at 0.45p, while this week there was one of the strongest hints yet that the flagship Thar Block VI project is getting closer to being a reality. This came in the aftermath of Oracle and its Consortium Partner, the China National Coal Development Company have jointly submitted a policy proposal to the Pakistan Ministry of Energy. Oracle shares rose 9% to 0.57p.
Wishbone Gold (WSBN) had transformative year in 2020 in terms of the share price of the company, and the focus on its Australian gold assets. For 2021 Wishbone seems keen to finesse this positive change with a blue chip board appointment. This came in the form of David Hutchins, currently Chairman of the FTSE Gold Mines Index Committee and a Member of the Chartered Institute for Securities & Investments. Mr Hutchins said that he looked forward to helping the company grow and develop its Australian assets for the benefit of shareholders. Shares of Wishbone rose just under 2%.
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