Small cap movers: Junior miners cash in on gold price spike

A look back at some of this week's more interesting stories from London's junior market

Gold price
The price of the yellow metal has risen by around 10% since the end of May

The last 30 days have been a boon for the world’s gold traders, with the price of the yellow metal having risen by around 10% since the end of May.

While bigger London-listed gold players like Acacia Mining PLC (LON:ACA) have seen healthy share price growth as a result, the effect has also been trickling down into the junior market.

Serabi Gold PLC (LON:SRB), a Brazil-focused miner, has seen its shares rise a whopping 117% since late-May while fellow AIM-listed junior Trans-Siberian Gold PLC (LON:TSG) has climbed 36% in the same period.

Gold’s renewed vigour has been sparked by a brake on the rise of the dollar thanks to newfound caution from the Federal Reserve as well as ongoing tensions in the Middle East between the US and Iran.

Meanwhile, this week saw a tasty treat for investors in Cake Box Holdings PLC (LON:CBOX), which hiked its final dividend by 50% to 2.4p per share to top off a record breaking first year as a listed company.

The cake shop chain listed on AIM last summer, when it was valued at £45mln, but since then it has shaken off the wider retail sector woes to grow its pre-tax profits by 14% and its revenues to a record-breaking £16.9mln.

The strong results had investors tucking into its shares, which were up 5.4% in the week to 176p.

Elsewhere this week, Hong Kong brought some good news for China New Energy Limited (LON:CNEL), which surged 26% higher to 1.5p after announcing its intention to list on the main board of the former UK colony’s stock exchange.

A little closer to home, in the UAE, architecture firm Aukett Swanke Group PLC (LON:AUK) gained 21% to 1.8p after getting the green light for the Samanea Market project in Dubai, a 1.18mln square foot centre costing US$272mln.

Investment firm Vela Technologies PLC (LON:VELA) spun 26% higher to 0.1p after a vehicle owned by billionaire property tycoon Nick Candy bought a 23% stake in one of its portfolio companies, ticketing and payments group Vibe, for a reported seven-figure sum.

Fellow investment firm Two Shields Investments PLC (LON:TSI) also soared higher, up 51% to 0.1p after experienced technology investor Chris Akers increased his stake in the company to 4%.

Speaking of investors, the Woodford saga brought some benefits for drug discovery group E-Therapeutics PLC (LON:ETX), which rocketed 66% higher to 2.9p after a share overhang created by Woodford Investment Management’s need to liquidate assets was further cleared over the week.

Overall, the AIM All-Share index was down 1.5% at 919 in the week, while the FTSE 100 edged up 0.1% at 7,418 as investors focused on the latest G20 summit in Japan which started on Friday.

Among the small cap fallers, shares in pallet maker RM2 International (LON:RM2) crashed 77% lower to 8p after a bleak update that said the group would be unable to publish its 2018 results until it had received funding, which was unlikely to happen before the end of June and as a result, its shares would have to be suspended from trading on AIM.

KEFI Minerals PLC (LON:KEFI) was left bloodied after it failed to assuage investor concerns over a failed coup attempt in the Ethiopian city of Bahir Dar, 500km from its flagship Tulu Kapi gold project. The shares slumped 22% to 1.2p over the week.

Flooring specialist Airea PLC (LON:AIEA) also saw its shares hit the deck, tumbling 20% to 56.5p after predicting that its first half revenues would be “slightly down” year-on-year as a result of “significantly tougher conditions” in the second quarter.

RedT Energy PLC (LON:RED) also aptly slipped into the red, sinking 21% to 1p, after its pre-tax losses widened to £12.4mln from £7.5mln in 2018 despite revenues surging 87% to £4.2mln.

And asset finance company 1PM PLC (LON:0PM) more than ticked lower, tumbling 27% to 30.8p as investors did not take kindly to new plans for the firm to invest more into its sales and new business personnel.

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