Evgen Pharma plc (LON:EVG) – BUY*: Clinical trial approval
Market Cap: £14.2m; Current Price: 19.4p; Target Price: 79.0p
Approval of Phase II clinical trial in SAH
Evgen announced that it received the required approvals for the commencement of its Phase II trial of SFX-01 in aneurysmal subarachnoid haemorrhage (SAH), a form of stroke.
Patient recruitment and first dosing in the 90 patient trial is expected to start in early Q2 calendar year 2016 following the approval of the trial by the Medicines and Healthcare products Regulatory Agency and by a research ethics committee.
Sulforaphane, the active ingredient of SFX-01, has been shown to be neuroprotective in multiple models of cerebral damage, including SAH.
The group also reported that its other programmes in metastatic breast cancer and multiple sclerosis are proceeding as planned.
NORTHLAND CAPITAL PARTNERS VIEW: The commencement of Evgen’s first Phase II clinical trial will represent a major clinical milestone for the company. Moreover, SFX-01 has the possibility of qualifying for orphan drug status for SAH in most major regulatory jurisdictions, potentially giving it extended market exclusivity and making it easier and faster for the treatment to gain marketing approval. There have been no significant clinical advances for more than 20 years in SAH.
Botswana Diamonds (LON:BOD) – SPECULATIVE BUY*: Exploration update
Market Cap: £2.7m; Current Price: 0.9p
Exploration programme for 2016
Botswana Diamonds has outlined its exploration programme joint venture with Alrosa for 2016.
The partners will drill one diamond holes to 300m and two large diameter holes to 300m on the known kimberlite pipe – AK21 on PL 260 in the Orapa area.
Two to three follow up holes to 80m will be drilled on PL210 in the Orapa area.
Hard rock and heavy concentrate sampling will be undertaken on PL 260 and 210 in Orapa and PLs 135, 136 and 137 in Gope.
Ground magnetic surveys and electromagnetic surveys on PLs 260 and 085 in Orapa and PLs 135, 136 and 137 in Gope.
Botswana Diamonds will fund 50% of the US$700,000 budget.
NORTHLAND CAPITAL PARTNERS VIEW: This will be a focused exploration programme from Botswana Diamonds and joint venture partner Alrosa with the focus being the wide diameter holes on AK21 to test if diamond grades improve at depth.
Global Energy Developments (LON:GED) – CORP: FY15 results
Market Cap: £10.9m; Current Price: 30p
Strongly positioned to take advantage of weak oil price environment
Revenue decreased to US$0.4m in FY15 from US$0.7m in FY14.
LBT increased to US$26.7m in FY15, including a US$21.8m impairment, compared to US$17.3m in FY14, that included a US$11.2m impairment. The US$21.8m impairment in FY15 is associated with the proved and probable oil reserves within the Bolivar Contract being uneconomic at the current oil price.
Net cash declined to US$22.4m in FY15 from US$31.7m in FY14. Note receivable of US$8m at year end, post period end this increased to US$10m.
Production at Global’s producing well in Colombia, Torcaz#2, during FY15 totalled 11,240bbls up from 8,565bbls in FY14, though turnover was lower dues to a lower realised oil price of US$32.46/bbl compared to US$80.44/bbl in FY14.
NORTHLAND CAPITAL PARTNERS VIEW: Global Energy Developments opted for a cautious approach to its acquisition strategy during 2015 as many energy businesses have not fully accepted the valuation implications of a low oil price environment. Global is well positioned for 2016, while other companies in the sector struggle with the low oil price environment, Global has a strong cash balance that will allow it to acquire quality projects at a low cost and benefit from the uplift in the oil price when the market improves.
Keras Resources (LON:KRS) – CORP: Grants Patch update
Market Cap: £9m; Current Price: 0.8p
Mining fleet arrives at site
The mining fleet for the open pits has now arrived on site at the Grants Patch Gold Tribute Project, located in Western Australia.
Company remains on track for first gold extraction from the two shallow laterite gold pits in the near-term.
Churchill Mining (LON:CHL) – SPECULATIVE BUY*: Company update
Market Cap: £23m; Current Price: 17p
Cash position of US$1.09m looking at a number of funding options
Churchill Mining current has a cash balance of US$1.09m.
Whilst this cash resources is sufficient to meet its working capital needs in the short term, the Directors have brought forward their evaluation of a number of funding options to secure additional working capital.
This is a result of accelerated costs in connection with ICSID international arbitration case against the Republic of Indonesia and higher than expected costs of preparing its defence to the LSE’s Statement of Claim as referred to in the Company’s 2015 Annual Report.
DiamondCorp (LON:DCP): Resource Statement
Market Cap: £39m; Current Price: 8.8p
38.48mt at a grade of 24.4cpht
DiamondCorp has received an updated mineral resource estimate for the Lace Diamond Mine, located in South Africa.
The total mineral resource estimate is 38.48mt to the 920m level, up from 33.12mt in the previous estimate, though the resource remains open at depth. While the grade has decreased to 24.4cpht from 40cpht, previously. The average diamond value is forecast to be US$164/ct compared to US$160/ct, previously, though this diamond value doesn’t reflect the value on any special stones.
Probable reserves total 1.42mt of K4 grading at 36.2cpht and 0.78mt of lower-grade K6 kimberlite at a grade of 9cpht.
NORTHLAND CAPITAL PARTNERS VIEW: This latest mineral resource estimate for DiamondCorp uses the higher screen size of 1.25mm compared to the 1mm in the previous estimate. The lower screen size means that grades will be lower but because many of the smaller stones will not be recovered the average value per carat increases as does operational efficiencies allowing production to occur at a faster rate than 1.2mt planned once block caving commences. With the weakness in the Rand the project is expected to have operating margins of 60%-76%.