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Petro Matad rallies on Mongolian licence extension

Last updated: 15:21 15 Jun 2017 BST, First published: 10:29 15 Jun 2017 BST

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Petro Matad Limited (LON:MATD) has confirmed that the Mongolian authorities have formally approved the proposed extension of the company’s exploration projects.

In a stock market statement, it told investors that the exploration period for blocks IV and V production sharing contracts have been extended for two years until July 2019.

It means the company has more time to meet its work obligations and retain its interests in the assets.

Specifically, Petro Matad said the extensions allow it to execute its planned work programme for 2017 which includes drilling two wells and conducting a 3D seismic exploration work.

Shares rose 11% to 11.7p.

Jubilee celebrates full speed Hernic

Jubilee Platinum PLC (LON:JLP) celebrated news that the chrome and platinum producer’s Hernic project is operating at full production rate with a 7.5% rise to 4.46p.

The tailings project in South Africa is now processing 1,900 tonnes each day of chrome and platinum containing feed material, which equates to around 55,000 tonnes per month.

IFrameJubilee added that platinum group metals (PGM) production continues to ramp up in line with the increased production capacity.

Approximately 420 ounces of PGM have been delivered to the refinery so far.

DFS Furniture sparks retail sector slump with grim trading statement

Sofa maker DFS Furniture Plc (LON:DFS) was sitting very uncomfortably as it issued a profit warning blaming uncertainty over Brexit and the UK general election.

Underlying earnings (EBITDA) this year will be lower than market estimates at a range of £82mln to £87mln after trading in the second half was weaker than expected.

Shares plunged 21% to 198p with its problems affecting other retailers.

DFS saw “significant declines” in store footfall in the second half, which led to a material reduction in customer orders.

Next caught in the retail fallout

Next Plc (LON:NXT) was hit by the DFS statement which coincided with a downgrade from Swiss broker Credit Suisse.

““We continue to believe that its strategy of expanding UK space is incorrect for a mature retailer and that self-help from Credit, International and Label will diminish, and potentially reverse, over the next two years. “With earnings, margins and cash conversion continuing to fall we regard Next as a value trap.”

Credit Suisse's target price has been cut to 3,956p from 4,250p and the shares fell 6.7% to 4,013p.

ANGLE in demand as Barts backs cancer cell collection technology

Med-tech firm ANGLE PLC (LON:AGL) soared as it reported a breakthrough in the treatment of prostate cancer.

ANGLE’s Parsortix system, which harvests circulating tumour cells (CTCs) from the blood stream, helped researchers from the Queen Mary University of London's Barts Cancer Institute (BCI) find two rare cells.

The first is known as a megakaryocyte and the BCI team was able to link its presence to patients who lived longer after being diagnosed with the killer disease. Parsortix was also able harvest mesenchymal CTCs, which are linked to a poor outcomes.

The BCI study of 40 people found that combining these two factors enabled the identification of patients who are 10-times more likely to die of their disease in the short-term.

Shares rose 20% to 76.4p.

BB Biotech happy with ASCO presentations

Switzerland-listed BB Biotech (SWX:BION) updated on presentations given by its portfolio companies at the 2017 ASCO cancer treatments conference.

Incyte presented very good clinical data with an update due to be published in 2018, it said, while Cengene presented final data on its top drug candidate which showed an impressive overall response rate. 

Like its sister fund BB Healthcare Trust (LON:BBH), which is listed in the UK, BB Biotech is managed by Bellevue Asset Management.

Starcom surges on container tracking order

Starcom Plc (LON:STAR) jumped 50% as it picked up a supply order from  Shiptek Solutions Corporation, a Philippine software company, for the supply of its Tetis R container tracking system.

Under the agreement, Shiptek has committed to purchase a minimum of 2,900 Tetis R units over three years for a total sales value of US$1.2mln and has placed an initial order of US$42,500 (for 100 units).

The minimum order commitment of the remaining 2,800 units is phased as to 800 units in 2018, 800 units in 2019 and 1,200 units in 2020.

Shares rose 45% to 2.18p.

Sprue Aegis back on track

Fire alarm maker Sprue Aegis PLC (LON:SPRP) climbed 12% to 218p on a bullish AGM statement from chairman Graham Whitworth.

"Sprue has made a positive start to the year with an expected strong return to profitability in H1 2017 building on the steady progress delivered by the company in the second half of 2016.

“ The combination of a significant improvement in gross margin and a net reduction in overheads is expected to contribute to a much improved financial performance by the Group in H1 2017 compared to H1 2016.” 

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Driver safety technology leader Seeing Machines PLC (LON:SEE) has secured its first UK multi-year services contract for its Guardian system solution with FreshLinc, the chilled products delivery specialist.

A growing global demand for high-quality rubies has helped Gemfields PLC (LON:GEM) to generate record revenues at the latest auction of gemstones  from its Montepuez ruby  mine in Mozambique. Gemfields sold US$54.8mln worth of the red-coloured gems at the auction; which was held in Singapore and is the second and final ruby auction this year.

Having placed an order for 100,000 capsules of OptiBiotix Health plc's (LON:OPTI) cholesterol-reducing LP-LDL strain back in late April, German distributor HLH has entered into a three-year commercialisation agreement with the Aim-listed firm.

AIM-listed ValiRx Plc (LON:VAL) said recruitment has concluded for an early-phase study of VAL401, a potential treatment for non-small cell lung cancer. VAL-401 is being developed jointly by ValiRx and Tangent Reprofiling as part of the pair’s ValiSeek collaboration.

Asiamet Resources Limited (LON:ARS) said the infill and expansion drilling on its BKM copper project in Indonesia has met and some cases exceeded expectations. The stand-out result came from the BKM058 Zone where twin drill holes confirmed the existence of high-grade, near-surface mineralisation.

 

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