Mining group GCM Resources plc (LON:GCM) shot up almost 30% to 44p in afternoon London deals each after it reported a wider pre-tax loss in its latest financial year due to higher costs
"Although the mining sector has continued to face significant challenges over the last twelve months, we remain positive on the potential of the Phulbari Coal and Power Project (the Project) and are advancing the Company towards realising its objectives," it said in annual results.
Pre-tax loss for the year to end June widened to £1mln against £937,000 the year before, as it booked higher finance costs and share based payments.
Meanwhile, Karelian Diamond Resources Plc (LON:KDR) saw shares fall more than 9% to 0.5p as it unveiled a proposed capital reorganisation.
Interim results for the six months ended February 29 from the Ottoman Fund (LON:OTM) and shares fell almost 23% to 2.125p. The loss for the six months was £1.025mln against a loss of £283,000 last year.
Rolls getting hit -11.15am
Rolls Royce (LON:RR.), the engine maker, was getting hit hard mid-morning.
Shares shed 2.64% to stand at 719p after a trading update and investor day yesterday and a downbeat note from Deutsche Bank.
The broker repeated a 'sell' on the shares and said it believed efforts to improve the business were being overestimated by the share price.
The broker targets 474p for the shares.
Rolls conceded that under new accounting rules from 2018 its profits would fall in the short term.
Deutsche said the restatement would see civil aerospace margins fall to an estimated negative 9% in 2016 with civil aero likely remaining in loss until 2019.
Although free cash flow is unchanged, cash flow multiples remain unconvincing even by 2020 compared to sector peers, it said.
Also lower in London was Akers Biosciences Inc (LON:AKR, NASDAQ:AKER), the UK and US listed rapid breath test specialist, which has flagged up plans to raise up to US$7mln.
In a pre-emptory prospectus filed in the States, it has given itself the flexibility to issue common stock, preferred stock, warrants and/or units.
It says the proceeds will be put to work to grow the company, including bringing new products to the market. Shares fell almost 18% to 185p.
The Royal Mail Group (LON:RMG) also continued the decline started earlier, now down over 7% to 463.50p as the market recated unfavourably to results.
Royal Mail failing to deliver - 9.15 am
Now privatised postal group and Footsie constituent Royal Mail PLC (LON:RMG) delivered middling half-year results and the market was not impressed.
Shares in early deals fell 2.95% to 484.2p.
“Our performance was broadly in line with our expectations,” said chief executive Moya Greene, which is management-speak for ‘not quite as good as we hoped’.
Top London riser was marketing communications group Creston plc (LON:CRE), up over 33% to 124.5p as it agreed to a £75.8mln takeover offer by a special vehicle Bidco.
Keras Resources (LON:KRS) was a notable riser, up almost 10% to 0.575p as the Australia gold miner revealed it had kicked off initial drilling at its Klondyke gold project.
The project lies in the prospective Warrawoona Goldfield in the East Pilbara District of the Pilbara Goldfield of Western Australia.
Sticking to mining, Xtract Resources (LON:XTR) added 10% to 0.0275p as it announced it had completed a review of the Manica project.
The firm said the definitive feasibility study, which is now being optimised is not expected to change materially.
The firm has concluded Manica can be developed solely as an open pit basis and dismissed the concept of a high grade open pit operation followed by an underground mine.