Alba Mineral Resources shares lower as it raises £1.06mln to fund Horse Hill, Brockham assets

A look at some of the top risers and fallers in London today

horse hill
Alba Mineral Resources will used the proceeds to support its oil and gas portfolio

Alba Mineral Resources PLC (LON:ALBA) shares were lower after announcing it has raised £1.06mln through the issue of shares ahead of its admission to trading on AIM.

The company issued 266,250,000 new ordinary shares at 0.4p each in the placing, conditional on the admission of the shares to trading on AIM.

“The placing proceeds will be principally used to advance the company's interests across its existing portfolio of assets in the onshore UK oil and gas sector (Horse Hill and Brockham), its mining exploration portfolio, notably the high grade Amitsoq graphite project and Thule mineral sands project, both in Greenland, for further project or investment opportunities and for general working capital purposes,” the group said.

Alba has made an application for the new ordinary shares to be admitted to trading on AIM, which is expected to become effected on 4 September at 8am.

Shares fell 7.28% to 0.436p. 

2.40pm: Metal Tiger edges higher on bullish assessment of Thai project

Metal Tiger PLC (LON:MTR) shares rose after providing an upbeat assessment of its Thai mining project.

The natural resources investor said the project’s direct benefit to Thailand’s economy is US$287.4mln, according to a final revised economic contribution assessment.

The assessment was carried out by Five Corners Consulting for the assets in its Kemco joint venture for the Song-Toh and Boh-Yai silver-lead-zinc mines in Thailand.

Shares increased 3.61% to 2.15p.

Inspiration Healthcare Group PLC (LON:IHC) shares ticked up after saying half year results will be in line with expectations.

In a brief trading update, the medical device company also left its full year forecasts unchanged.

Results for the six months ended 31 July will be published on 26 September.

Shares gained 3.66% to 60.85p. 

1.40pm: Monitise gains, Hunting slides 

Monitise Plc (LON:MONI) shares gained after saying shareholders approved a takeover offer by US financial technology Fiserv.

Earlier this month Fiserv improved its offer for its UK counterpart to 3.1p per share from a previous bid of 2.9p, which was rejected by shareholders who believed it undervalued the fintech compnay.

The new offer represented a 34.8% premium to Monitise’s share price before it was approached with a bid. The Monitise board unanimously recommended the bid.

At a court meeting earlier today, the requisite majority of Monitise shareholders voted to approve the recommended cash offer.

Once the deal is complete, Monitise said it intends to suspend its shares on AIM on 1 September.

Hunting Plc (LON:HTG) shares fell 3.39% to 412.70p as the energy service company warned outlook for the full year remains dependent on the oil price.

The warning came as the group swung to underlying earnings (EBITDA) of US$12.1mln in the first half from an EBTIDA loss of US$29.5mln last year and reported a 40% increase in revenue to US$318.9mln. The improved performance was boosted by strong growth in its Hunting Perforating Systems business on the back of healthy activity in onshore shale drilling in the US.

The company said it was cautiously optimistic about the group’s performance in the final months of the year as international drilling is expected to see modest improvements in the second half.

“Management remain disciplined on all costs across the business to ensure that Hunting exits this market downturn, a leaner and more profitable Group, while retaining its experienced workforce,” said chief executive Dennis Proctor.

"Despite trading momentum and order book levels within most businesses improving, the outlook for the full year remains dependent on the oil price."

12.10pm: Quadrise Fuels not aware of reason for share price drop

Quadrise Fuels International PLC (LON:QFI) was on under the cosh as it insisted it was not aware of any specific reason for the decline in its share price.

The AIM-listed emulsion fuel manufacturer earlier this month announced that Hemant Thanawala was stepping down as finance director and would become a non-executive director as the group restructures and streamlines the number of executive directors from three to two.

At the time, the company also said that executive chairman Mike Kirk had agreed to cut his cash salary by 50% and that executive directors would reduce their fees to £24,000 a year.

The changes at the top are aimed at delivering annualised cash-cost savings of more than £500,000, about 18% of the company’s underlying annualised costs.

Shares fell 20.87% to 4.74p following gains yesterday.

Pan African Resources plc (LON:PAF) rallied after the miner announced it has received the final regulatory approvals for the construction of its Elikhulu tailings project in South Africa.

The group has been granted the integrated water use licence for the project by the South African department of water and sanitation for a period of 20 years.

The integrated environmental authorisation has also been issued, meaning that it has been given the green light to start the building of Elikhulu.

Shares rose 2.64% to 13.35p.

11.00am: Auguean down in the dumps as HRMC tells it to cough up taxes owed

Waste Management firm Augean PLC (LON:AUG) saw its shares tumble after being told by HMRC to pay back £1.9mln in landfill tax with interest of £0.2mln.

Augean has been in talks with the UK tax department about whether it has paid sufficient landfill tax in relation to its treatment and disposal of hazardous waste.

The company has insisted that it has met its obligations but HMRC has issued an assessment on a subsidiary of the group for landfill tax for the three months ended 31st August 2013.

“We understand this has been issued in order to protect HMRC against that period falling out of time (a four year look back applies for landfill tax) whilst they undertake further enquiries and discussion with Augean,” the group said.

Augean believes this assessment to be without merit and we will appeal.”

Shares plummeted 41.62% to 32.40p.

Be Heard Group PLC (LON:BHRD) shares received a boost after the digital market services group said it has changed the terms of the earn-out deal agreed as part of the acquisition of the user experience business MMT.

The change has been made to three annual fixed payments of £3.233mln rather than being assessed on a performance basis, which Be Heard said will benefit both sides of the transaction.

MMT will have to achieve revenues greater than those posted for 2015. The earn-out will be paid 65% in cash and 35% in shares. The net effect is to bring the deal cap down £3mln to £17.5mln.

Shares rose 5.45% to 3.08p.

9.50am: Mercantile Ports & Logistics shares gush higher on contract win

Mercantile Ports & Logistics PLC (LON:MPL) shares rocketed up 92.37% to 9.33p after announcing it has landed its first contract to manage cargo at the port facility it is developing in Mumbai, India.

The port facility is expected to begin commercial operations in December when MPL will start receiving cargo.

MPL’s contract is with an Indian-based company for an initial five years with an option to extend by two years. In the first year of the contract, MPL will handle 2 mln tonnes of cargo and in the second year, this will increase to 2.5 mln tonnes followed by 3 mln in year three.

The company expects to generate £4.7mln revenue for every one million tonnes handled.

MPL also announced that it has appointed its head of finance, Andrew Henderson, to chief financial officer.

Centralnic Group PLC (LON:CNIC) shares edged up 4.98% to 68.50p after the internet domain names specialist announced the €26mln acquisition of Slovakian counterpart SK-NIC and confirmed it is on track to hit full-year expectations.

The acquisition first: CentralNic is paying an initial €21.27mln for SK-NIC – which manages the top-level domain for Slovakia, .sk – plus up to a further €4.85mln in future milestone payments.

Going the other way, WYG PLC (LON:WYG) shares plunged 38.51% to 56.88p after saying a slower-than-expected start to a couple of major contracts secured earlier this year will hamper its near-term performance.

The project management and technical consultancy’s international development business said first half operating profits are now expected to be “significantly lower” than the prior year. The group had expected £65mln worth of contracts it picked up in January and June this year to deliver a significant increase in revenue and profit during the early part of the year but this has failed to happen.

Energy storage and clean fuel group ITM Power PLC (LON:ITM) was on the back foot as it reported full year revenue growth and narrowed its losses but warned that “material uncertainty” exists due to the risk around the timing of cashflows.

The company said it is required to hold a certain amount of cash cover on guarantee, which limits working capital available to the group mid-contract. 

ITM Power had cash held on guarantee of £1.5mln at the year ended 30 April, compared to £2.2mln last year, which limited the group to £1.6mln of available cash.

“As such, there is a material uncertainty over the going concern assumption due to the risk around the timing of cashflows,” ITM said.

“Recognising the current need to manage working capital carefully and efficiently, ITM Power continues to structure quotes to include upfront payment with orders so that working capital is not impacted adversely by increased activity.”

Other Proactive News headlines:

Be Heard Group PLC (LON:BHRD), the digital marketing services group, has changed the terms of the earn-out deal agreed as part of the acquisition of the user experience business MMT. The company said the new deal will benefit both sides of the transaction.

Digital media specialist Falcon Media House PLC (LON:FAL) said it bought for £8 and then cancelled the founder share in the business owned GSC SICAV. The share allowed its owner the right to appoint and remove directors from the business, providing a layer of protection that is now not required.

SDX Energy PLC (LON:SDX) revealed a first half boosted by the acquisition of the Circle Oil assets with net revenues transformed. The company, in results for the six months ended June 30, reported revenue of US$18mln compared with US$4.6mln in the same period of 2016.

Eco Atlantic Oil & Gas Ltd (LON:ECO, CVE:EOG) chief executive Gil Holzman has told investors that the explorer has started to look for new opportunities. Holzman, in the explorer’s first quarter results, highlighted the company has been able to engage in seeking new potential assets and explore new transactions due to its strong balance sheet.

Falcon Oil & Gas Ltd (LON:FOG) investors waiting on the Australian shale decision will be assured that in the meantime the group remains financially stable. In a stock market statement, highlighting the filing of interim financial statements, Falcon told investors that it position was strong – with no debt and US$9.7mln cash at the end of June.

Pan African Resources PLC (LON:PAF) shares zipped higher in early deals after the miner secured the final regulatory approvals needed for the construction of its Elikhulu tailings project in South Africa. The AIM-quoted firm has been granted the integrated water use licence for the project by the South African department of water and sanitation for a period of 20 years.

Challenger Acquisitions Limited (LON:CHAL) said today it has received £250,000 - £237,500 net of fees - from the previously announced £1mln unsecured convertible note facility due 8 June 2019. The note facility was first announced on 13 June 2017 and in total £350,000 has now been received from it. The cash will be used for general working capital purposes and to potentially support an acquisition or development of a project to complement the company's US$3mln equity interest in the New York Wheel Project.

Strategic Minerals PLC (LON:SML) has proposed the implementation of an options programme, consisting of three tranches, designed to incentivise its board and management to target, over the next five years, a market capitalisation of £100mln and progressing onto a share price of 10p. The diversified mineral production and development company said the options programme is being implemented after its board received a number of enquiries, from shareholders and the general market, as to the future direction of the company and how the board and management would be incentivised.

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