1pm: Lonmin shares surge
Shares in platinum mining giant Lonmin PLC (LON:LMI) surged almost 22% on Friday, as it received the backing of its lenders to allow it to acquire the group’s Pandora joint venture.
Shares gained 21.62% to stand at 89.75p.
The proposed deal to buy-out partners Anglo American (LON:AAL) and Northern Platinum is supposed to unlock significant synergies.
The company highlighted that the transaction is expected to allow Lonmin to extend mining from the Saffy shaft without committing to a 2.6bn rand capital expenditure programme (which would have required 1.6bn rand to be paid over the first four years).
Having secured the support of its lenders, Lonmin now expects to complete the deal before the pending release of its full year results in November.
On the losing front, a notable casualty in London, was LXB Retail Properties PLC (LON:LXB) whose shares shed over 15% to 4.375p, as it issued a trading update.
The Jersey-based real estate investor, which is focused on edge of town and out of town retail assets, warned that NAV per share for 2017 was now estimated to be lower than previous expectations.
The figure is now expected to be between 30p and 35p due to cost-over runs and softening of the lettings and investment market.
LOLMI Lonmin gains bank support for Pandora and secures a pre-emptive covenant wa https://t.co/HwXqnpe3IC
— Platinum Wealth (@PlatinumGroupZA) 6 October 2017
9.30am: Mirada surges
London's top gainer in early deals, before giving way to Strat Aero PLC (LON:AERO) was digital TV group Mirada PLC (LON:MIRA).
Its shares surged almost 28% to 1.38p after it told investors it had won a new contract in as many months for its Iris multiscreen solution.
It is a five year deal with Bolivian pay TV operator and broadband services provider Digital TV Cable Edmund S.R.L and will see Mirada deploy its entire suite of Iris products, including its over-the-top (OTT) platform and back-end application.
It comes just weeks after the group won a contract with NASDAQ-listed ATN International Inc (ATNi), which operates in the US and the Caribbean under trade names such as Comnet, Choice and GT&T.
Late last month, the firm told investors its pipeline is currently the strongest it has ever been after reporting a return to revenue growth last year.
For the 12 months ended 31 March 2017, Mirada posted a 9% rise in revenues to £6.57mln (2016: £6.02mln), while gross profit increased 5% to £6.09mln (2016: £5.80mln).
Mirada swung to an operating loss of £5.10mln though, as it upped its product and marketing investment in order to execute the new contract wins.
On the losing front on Friday, carrier easyJet (LON:EZJ) was in the frame, flying 2.18% lower to 1,257p despite the FTSE 100 firm seemingly delivering an upbeat trading update.
It forecast that full-year profits would be ahead of previous guidance, expecting pre-tax profits of between £405mln and £410mln despite foreign exchange rate movements which are set to have an adverse impact of around £100mln.
Proactive news headlines:
Digital TV services specialist Mirada PLC (LON:MIRA) has won its second new contract in as many months for its Iris multiscreen solution. The five year deal is with Bolivian pay TV operator and broadband services provider Digital TV Cable Edmund SRL.
Vast Resources PLC (LON:VAST) told investors that recent successes in Romania has led to possible options for non-dilutionary financing. The company said it has been presented with a number of potential non-dilutionary financing options and it is now in talks with metal traders and debt providers.
InnovaDerma PLC (LON:IPD), maker of the hugely successful Skinny Tan bronzer and sculpting range, has unveiled plans to raise £4.4mln to accelerate its expansion. It is doing so by selling 1.6mln new shares to existing investors at 276p each, which represents a 14% discount to last night’s closing price.
Motif Bio PLC (LON:MTFB) said new pre-clinical data point to potential efficacy of its lead drug to treat cystic fibrosis sufferers who have contracted staphylococcus aureus pneumonia. The update, provided at a conference called IDWeek 2017, follows on from the successful Phase III clinical trial of the drug for those with acute bacterial skin and skin structure infections (ABSSSI).
W Resources PLC (LON:WRES) said it has completed an additional placing of around 26.66 mln ordinary shares at 0.375p each to raise £100,000 - the same terms as the placing announced yesterday – with Symmall Pty Limited, trustee of the Masterman Superannuation Fund of which the group’s executive chairman Michael Masterman is both a beneficiary and trustee. Following the placing, Masterman (and related parties) will have an interest of 20.96% in the total voting rights of the company.