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Ncondezi Energy dives as its search for strategic partner continues

Last updated: 15:50 20 Jul 2017 BST, First published: 09:35 20 Jul 2017 BST

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Ncondezi Energy Limited (LON:NCCL) seems to be making progress with its search to find a strategic partner with which it will jointly develop its 300MW thermal coal power project in Mozambique.

“Several” parties have shown an interest in teaming up, Ncondezi said, and it expects a deal to close before the year is out.

To try and facilitate the selection process, Ncondezi is asking various shareholders to extend their onerous loans, which are due to mature in September.

Assuming the repayment dates can be extended, Ncondezi said it will have “sufficient funding” in place to cover its costs until the end of September.

Investors seemingly weren’t convinced by the progress being made or with the finances, as shares dropped by a third to 2.7p.

Origo Partners PLC (LON:OPP) was faring better this afternoon as it added almost 17% to its share price over the course of the day.

The Asia-focused investment group is looking to divest its entire portfolio come November 2018, and it took another step towards achieving that target today.

Origo told investors it has agreed a deal to sell its 2% stake in Rising Technology Corp as well as its 1.6% interest in Rising InfoTech for US$1mln in cash.

The disposal is expected to go through before the month is out and means that, following a US$2.5mln sale of some of its other Rising interests a few years ago, it has now broken even on that particular investment.

1.45pm...IQE booms as it ups guidance and reckons more upgrades could follow

IQE PLC (LON:IQE) was the biggest riser on the junior market in early afternoon trading after the semiconductor group upped its full-year guidance and told investors that more “significant upgrades” could follow.

In a trading statement, the AIM-quoted firm said all of its business units had progressed in line with expectations, although it highlighted its photonics unit as the “standout” performer.

IQE added that it is in a good position to deal with the expected higher levels of growth in the second half of the year, having recently agreed a heads of terms for the lease of new premises in South Wales.

“The first half of 2017 has been a very exciting time for the IQE group,” said chief executive Drew Nelson.

He added: “In light of recent progress and its increasingly confident outlook, the board expects the group will now exceed market expectations for the full year and whilst it remains early into the start of the mass-market adoption of our technology, it is possible that with the current contract momentum, a more significant upgrade to current market expectations could be delivered for 2018.”

Shares in TomCo Energy PLC (LON:TOM) slipped by 7.5% to 5.9p after the group raised £250,000 at a steep premium.

Given that the cash was raised through the issue of shares at 4p a piece – more than a third below yesterday’s closing price – it’s a surprise that the share price hasn’t fallen further.

As for what the new cash influx will be used for, TomCo said it will go towards providing a US$50,000 loan to its Turboshale subsidiary which will fund laboratory testwork.

Some of the money raised will also go towards paying back directors’ fess, which have been accruing since the start of the month.

Moving up the leagues all the way to the FTSE 100, easyJet PLC (LON:EZJ) was a big faller today despite upgrading its full-year guidance.

The low-cost carrier expects yields to come under pressure in the coming months as cheaper fuel prices exacerbate the price war currently raging in the industry.

That is what the markets picked up on instead of the upped forecasts and increased revenues, with shares in the orange and white-liveried airliner down 5.4% to £13.36.

9.35am ... eg Solutions surges as it ups full-year guidance after “strong” first half

Shares in EG Solutions PLC (LON:EGS) surged more than 10% in early deals as the back-office workforce optimisation specialist upgraded its full-year guidance after a “strong” first half.

For the 12 months to 31 January 2018, the AIM-quoted group is now forecasting revenues of at least £10.5mln (2017: £8.2mln), and adjusted underlying earnings (EBITDA) of not less than £1.9mln (2017: £1.2mln).

Both of those numbers, which could edge even higher, are well ahead of what the markets are currently forecasting. House broker finnCap had previously pencilled in sales of around £9.5mln and adjusted EBITDA of £1.4mln. Shares added 13.3% in early deals to 93.5p.

Marketing specialist MediaZest PLC (LON:MDZ) was another moving on up after it completed a project for giant car manufacturer Volkswagen in Birmingham.

MediaZest designed an interactive projection wall, video walls and car lecterns for the new VW store in the Bullring shopping centre. After a few months of development, the AIM-quoted firm finished the project earlier this month.

Investors were clearly pleased that the tie-up with such a big name went off without a hitch, with shares jumping 15% to 0.11p.

On the flip side was Peel Hotels PLC (LON:PHO), which slumped by 14.8% to 115p after its full-year results disappointed.

In the year to 29 January, revenues slipped by 1.3% to £16.8mln while profit before tax took a heavier whack, falling from almost £1mln last year to £576,000.

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