Cadence Minerals Plc (LON:KDNC) and European Metals Holdings Ltd (LON:EMH), two AIM-listed lithium miners, were both in demand today after the UK government pressed ahead with plans to ban sales of new petrol and diesel cars by 2040.
Lithium is a key component of the batteries used to power electric vehicles, which the government hopes people will start switching to as it looks to do its part in the global fight to reduce emissions.
Other European governments have made similar commitments to banning sales of gas guzzlers, and the major carmakers are starting to focus more of their resources on hybrid and electric vehicle development.
Even supercar manufacturers such as Porsche and Aston Martin are developing their electric sports cars, and BMW there are rumours that BMW will introduce an electric version of its popular 3 Series some point soon.
With the demand for new EVs set to soar in the coming years, the need for the soft metal will jump as well.
That obviously bodes well for the likes of Cadence and European Metals, and investors were quick to part with their cash today to jump on the lithium train.
Cadence shares jumped 14% to 0.51p, while European Metals shares added 9.5% to 50.3p.
1.45pm...Premier African booms
Shares in Premier African Minerals Limited (LON:PREM) were on fire this afternoon after the junior miner revealed that its Zulu project in Zimbabwe is likely host to more lithium than originally thought.
Premier has completed 12 diamond core holes at Zulu, with “significant massive lithium mineralisation zones” intersected in all of them.
Several new pegmatite zones – the primary source of lithium – have also been discovered in the southern part of the license area.
“These new results are most encouraging,” said chief executive George Roach.
“The new intersections again confirm the potential of Zulu and are likely to significantly increase our maiden resource estimate of 20.1 million tonnes grading 1.06% at Zulu.
“Our current exploration target is between 60-80 million tonnes, however this excludes the recently discovered pegmatite zones in our license area.”
Unsurprisingly, PREM shares were in demand this afternoon, shooting up by 44% to 0.64p.
Metals Exploration’s quarterly update disappoints
Metals Exploration Plc’s (LON:MTL) latest quarterly update hasn’t been a hit with investors, and it’s not too hard to figure out why.
Gold production in the second quarter of 2017 fell year-on-year as its Runruno gold mine in the Philippines continues to be “hampered” by suboptimal processing performance among other issues.
There are also financial issues that need resolving. Metals Ex said it is “seeking to finalise in the near term” a US$20mln funding facility for working capital and to help it repay short-term loans.
As of the end of June, the AIM-quoted miner had US$1.8mln in cash versus US$87mln of interest-bearing liabilities. Shares lost 19% of their value to trade at 3.24p.
10am...Acacia hammered once again as dispute with Tanzanian government continues to weigh
FTSE 250-listed miner Acacia Mining PLC (LON:ACA) headed lower once again this morning as the huge US$190bn fine it was handed by the Tanzanian government yesterday was understandably still concerning the markets.
The figure – which is made up of US$40bn in taxes and US$150bn of penalties – has been called “ludicrous” by analysts and is part of Acacia’s ongoing dispute with the authorities in the East African country.
The government there alleges that the miner under-declared the amount of gold it was shipping from its four mines in the country and as such claims it is owed A LOT of money in back taxes.
For its part, Acacia denies any wrongdoing and has maintained its position throughout the saga that it has always fully declared all revenues.
Regardless of who is right and wrong, the number being demanded is pretty incredible; it’s 288 times more than Acacia’s market cap on the FTSE 250.
Acacia is down another 10% today to 159.7p and has lost almost three-quarters of its value since the issues first came to light back in March.
Better outcome for Kibo in Tanzania
Down on AIM, Kibo Mining PLC (LON:KIBO) boomed after it told investors it has concluded a “very successful” second round of follow-up meetings with Tanzanian government departments and Tanzanian stakeholders regarding the proposed Mbeya Coal to Power Project (MCPP).
The company noted that the completion of a special mining right application remains on course, along with environmental certification, but, other milestones were reached as a result of the latest phase of meetings.
“Development of the MCPP is currently advancing on all levels and we are optimistic that this trend will persist going forward,” said Louis Coetzee, Kibo chief executive.
He added: “We are very pleased with progress on the MCPP over the past six weeks and particularly pleased with the significant increase in momentum over the past three weeks.”
That was enough to send the share price into overdrive, with the stock adding 14.2% to trade at 5.4p.
LoopUp confident of further growth
LoopUp Group PLC (LON:LOOP) added 7.1% in early deals to 173p after the remote meetings technology company enjoyed a strong first half of 2017, with revenue, earnings and margin strongly ahead of last year.
Revenue from its flagship audio conferencing product rose to £8.65mln from £6.00mln in the same period of last year, representing like-for-like growth of 44.2%.
Underlying earnings (EBITDA) rose to £1.61mln from £890,000 the previous year, while the gross profit margin climbed to 76.8% from 73.7%.
"This continued growth reflects the enterprise market's response to LoopUp's highly differentiated product strategy,” said co-chief executive Steve Flavell.
"Looking ahead into the second half of 2017, we continue to see strong demand for the LoopUp product and we remain confident in our ability to deliver future growth."
Proactive News Headlines:
Vehicle tracking technology company Quartix Holdings plc (LON:QTX) held first half profits steady, despite a conscious decision to reduce exposure to the insurance market. It remains on track to meet full-year expectations.
WATCH: Quartix buoyed by increase in fleet installations after business rebalancing
OptiBiotix Health plc (LON:OPTI) has reached a significant milestone following the first sales in Germany of a new range of cholesterol-lowering capsules containing its breakthrough LP-LDL technology. It follows the successful registration by partner HLH Biopharma (HLH) of the product, known as Lactobact, which uses naturally occurring strains of bacteria.
WATCH: Milestone for Optiobiotix with first sales in Germany of LPLDL capsules
Beauty and personal care products developer InnovaDerma PLC (LON:IDP) delivered its highest ever monthly revenue in June, thanks in part to strong sales of its ridiculously popular flagship brand, Skinny Tan.
Dotdigital Group plc (LON:DOTD) has appointed Phillip Blundell as its interim chief financial officer and will join the board of email specialist once regulatory procedures have been completed. Blundell previously has been chief financial officer at Eagle Eye Solutions and Intelligent Environments with over 18 years' experience in software businesses.
Minds + Machines Group Limited (LON:MMX) gave an upbeat update on renewal rates in China as well as a progress report on its strategic review. On the latter, investors were told discussions are ongoing with a number of “interested parties” from Asia, North America and Europe.
Secure Property Development and Investment PLC (LON:SPDI) has sold its 65% stake in Delia Lebada, a plot of land in east Bucharest earmarked for residential use, for €2.5mln plus elimination of associated debt.
Midatech Pharma Plc (LON:MTPH) is on track to have its MTD119 liver cancer candidate enter into human trials in 2018 after it completed the pre-clinical programme. The pre-clinical studies demonstrated “potent anti-tumour activity”, with peak reduction in tumour growth more than six-fold compared to the current standard of care, sorafenib, and with improved overall survival.
Range Resources Ltd (LON:RRL) gave investors an update for the quarter ended June 30, with oil production volumes out of Trinidad lower than the preceding three months.