ValiRx Plc (LON:VAL) – CORP: Japanese patent grant
Market Cap: £9.2m; Current Price: 24p
Patent granted for cancer biomarker screening test
- ValiRx announced that it has received patent approval by the Japanese Patent Office covering the means for diagnosing and monitoring of patients using a biomarker testing for B-cell lymphomas and its prognostic outcome.
- The patent is based around the NAV3 gene and comprises a novel method to permit early diagnosis by use of the biomarker for diagnosing and separating types of B-cell lymphomas into different prognostic groups.
- The use of biomarkers with oncology therapeutics is a fast growing area of cancer research, as not only can biomarkers identify patients more likely to respond to a particular therapy, but also indicate tumour progression.
- This patent grant also builds on ValiRx’s recent acquisition of its TRAC technology, which enables the efficient screening of a large number of drug candidates for a wide range of genetic safety and efficacy markers.
NORTHLAND CAPITAL PARTNERS VIEW: This patent grant further underpins ValiRx’s biomarkers business, which seeks to capitalise on the increasing use of biomarkers in oncology therapeutics and Personalised Medicine. Personalised Medicine is a rapidly advancing field, with the pharmaceutical industry increasingly relying on biomarkers in order to better understand how different individuals and populations are affected by a particular disease and related treatments. Already, knowledge of the genetic differences among trial groups can help support more effective drug development. In the long-term, more targeted treatments could improve drug effectiveness while also minimising the risk of serious side effects.
Premier African Minerals (LON:PREM) – SPECULATIVE BUY*: Interim results
Market Cap: £21m; Current Price: 0.6p
From yesterday: LBT widens as the Company looks to address teething issues at RHA
- LBT of US$2.2m in H115 compared to a PBT of US$1m in H114, due to the sale of Prem’s interest in AgriMinco and associated joint venture for a total of US$3m in H114. Net debt totalled US$4m in H115 compared to US$1.3m in H114.
- Optimisation at RHA continues. The delay in steady state production now expected in Q415 and the potential for reduced opex below US$89/mtu by mining the higher grade mineralisation located in un-developed stopes has led Prem to commence ore extraction from underground in October 2015.
- At the current APT price, RHA receives c. US$125/mtu, depending on deleterious material and concentrate grade. 20t have been shipped to date.
- RHA expects to meet plant rental payments (to Prem) and start paying down the debt owed to Prem in Q116.
- Prem received a formal offer to acquire its interest in Circum Minerals (private) for a total of US$2.4m, this offer was rejected by the Board due to its belief in the medium term value of the Danakil Potash Project.
- At the Zulu Pegmatite Project, Prem is in the process of collecting a bulk sample with metallurgical test work expected in Q415.
NORTHLAND CAPITAL PARTNERS VIEW: Premier African Minerals’ interim results reflect the normal teething issues associated with the development of a mine. The plant at RHA has now been upgraded and the optimisation of the plant is continuing. The decision to move to early underground production makes sense given the low ammoniumparatungstate (APT) price environment, as it will allow the Company to reduce its opex and increase its margin. We would expect the underground mine to be a low volume but high grade narrow vein type operation with non-mechanised mining. We would expect this to have a low capital requirement to start up as limited additional equipment is required and because of the existing development and stopes that have only been partially mined. Prem expects the optimisation process to be completed by Q415.
W Resources (LON:WRES) – BUY*: Interim results and La Parrilla update
Market Cap: £21m; Current Price: 0.6p; Target Price: 1.1p
From yesterday: LBT widens as La Parrilla is moved towards hard rock production
- LBT of £0.4m in H115 was up from £0.1m in H114, largely due to an increase in administrative expenses. Net cash of £0.5m in H115 compared with net debt of £1.9m in H114.
- Minor downgrades to our forecasts reflecting the higher than expected administrative expenses. BUY rating and 1.1p price target maintained.
- From Tuesday:
- W Resources has completed 1,302m of diamond and 1,594m of reverse circulation drilling at the La Parrilla Tungsten Project. Assay results expected in Q415.
- Updated JORC mineral resource estimate now expected in December 2015/January 2016.
- The first phase of metallurgical and equipment testing appears to indicate the potential for a 200% upgrade in WO3 content before the final concentration stages. Completion of metallurgical studies expected in Q415.
- Initial engineering studies have commenced.
NORTHLAND CAPITAL PARTNERS VIEW: W Resources’ interim results lead us to increase our forecast LBT for FY15 to £0.7m from £0.4m. This has no material effect on our price target, however. The Company is continuing to advance the Fast Track Mine at La Parrilla Project, located in Spain. The Company is currently evaluating the potential to simplify the plant flow sheet and as a result reduce the capex and opex of the operation further improving the project’s metrics. This is not the only positive development we are expecting from the Company with an upgraded mineral resource estimate anticipated in three to four months.
URU Metals (LON:URU) – CORP: FY15 results
Market Cap: £1.7m; Current Price: 0.7p
From yesterday: LBT widens as the Company focuses on Närke
- LBT during FY15 increased to US$1.8m compared to US$0.6m in FY14.
- Net cash of US$53k in FY15 compared with net debt of US$221k in FY14.
NORTHLAND CAPITAL PARTNERS VIEW: URU Metals’ FY15 results reflect the re-organization of the Company and the acquisition additional assets. At the Närke Oil-Uranium Project located in Sweden the Company plans to delineate a compliant mineral resource estimate and then advance the Project through feasibility studies. At the Zebediela and Burgersfort Nickle Projects located in South Africa the Company is awaiting approval from the South African Department of Mineral Resources for the transfer of licences. At the Nueltin Lake Uranium Project, URU has no plans to advance the project.