Mariana Resources (LON:MARL) – BUY*: Hot Maden update
Market Cap: £43m; Current Price: 3.6p; Target Price: 5.4pp
Assay results from holes HTD-51 to HTD-52
HTD-52, which lies outside the existing mineral resource estimate and140m down dip of HTD-04, contained 31.5m at 4.4g/t Au and 0.77% Cu from 262m and 18.5m at 2.24% Cu and 18.5m at 2.24% Cu and 0.4g/t Au from 295m.
In the southern target area, located around 400m south of the existing mineral resource estimate, two holes returned high-gold assay results with; 40.5m at 8.8g/t Au, 0.77% from 158m (HTD-53) 1m at 90.1g/t Au from 163m (HTD-51) and 1m at 22.9g/t Au from 117m (HTD-51).
No change to forecasts, rating or price target.
NORTHLAND CAPITAL PARTNERS VIEW: The southern area of Hot Maden (Figure 1) is now a significant exploration target for Mariana Resources and its joint venture partner Lidya. The Company has defined multiple narrow ultra-high-grade quartz sulphide veins similar in style to what was previously mined in the 1920’s. The southern area now represents another level of upside beyond the resource expansion drilling located in closer proximity to the existing resource base. Drilling continues both on the southern area and in and around the existing mineral resource area and the Company will provide further updates in due course.
ImmuPharma (LON:IMM): Alto invests
Market Cap: £34.7m; Current Price: 28.5p
Alto ups its stake
Yesterday ImmuPharma announced that it received notification by Alto Invest and its subsidiaries confirming its holding in ImmuPharma of 4,870,367 million Ordinary Shares in the capital of the Company, representing 3.99% of the Company's total voting rights, crossing above the 3% threshold.
Alto Invest is an independent asset management firm regulated by the French financial markets authority and is a specialised investor in European small and mid-cap companies.
NORTHLAND CAPITAL PARTNERS VIEW: Alto’s investment further corroborates our view that ImmuPharma represents a good investment opportunity. The group’s lead drug, a potential treatment for Lupus, currently in a Phase 3 clinical trial, is expected to deliver a pivotal read-out by the end of 2017.
Savannah Resources (LON:SAV) – CORP: Oman update
Market Cap: £13m; Current Price: 3.4p
Completion of gravity surveys
Savannah Resources has completed gravity surveys over three areas; VTEM 13 (Block4), Ghayth (Block4) and Sarami West (Block 5) that contains 12 VTEM and EM anomalies.
These areas were previously drill tested in 2015 defining alteration systems that confirmed the potential for VMS mineralisation the results of the gravity surveys will further refine drill targets.
The two stage 2,930m drill programme continues as planned at the Maqail South and Mahab 4 prospects (Block 5) and Dog’s Bone and Bayda prospects (Block4).
TechFinancials Inc. (LON:TECH) – BUY*: Prelims
Market Cap: £8.2m; Current Price: 12p; Target Price: 27p
Repositioned for growth in FY16 and beyond
Overall, group results for FY15 were in line with Northland’s (NCP’s) forecasts. Group revenues were US$13.6m (US$13.7m NCP) and Adjusted EBITDA was in line at US$0.6m (US$0.6m NCP). The Board did not recommend the payment of a dividend, again in line with expectations, however expects to pay a dividend in future when the business returns to profits. The balance sheet is in healthy shape with US$3.1m of net cash as at the end of December 2015, ahead of NCP’s US$2.9m.
The core B2B (software licensing) performed strongly, where revenues were +30% YoY to US$8.6m, on the back of growing the number of active trading licensees by 8 to 56 and new product launches such as simplified Forex. Management continues to launch new trading platforms and products such as the add-on CFD trading platform for stocks and indices, planned in the 2H16. Finally, the opening of the Hong Kong office will aid expansion into the Asia Pacific region.
B2C (trading platform) revenues and profits were impacted by a tougher regulatory environment in FY15. However, management reacted quickly by repositioning the B2C business. Two new agreements were signed during FY15 with Optionfortune, in order to expand a new B2C binary options trading business focused on the Asia Pacific region and an agreement with IBID to grow an existing B2C binary options trading brand. These changes were implemented in order to return the B2C business back to profitable growth in FY16 and beyond.
Positive outlook statement from management, where FY16 has started well, and trading in the 1Q16 was in line with market expectations. No changes to our forecasts at this stage, we look for US$20m of revenue and US$1.6m of EBITDA in FY16E.
NORTHLAND CAPITAL PARTNERS VIEW: The Board took remedial action during FY15, in the B2C business in particular, and with the new structures (Optionfortune and IBID) in place the B2C business is repositioned for growth in FY16 and beyond. Furthermore, the core software business (B2B) continues to trade well, where investment into new products (simplified Forex, Mobile & Tablet and an add-on CFD platform) will assist customer retention and further revenue growth from new and existing customers. Finally, the Board continues to focus on its strategy of increasing market share in existing markets, whilst also penetrating new emerging markets with high growth potential. The shares trade on an undemanding 5.4x FY16 EV/EBITDA. We maintain our BUY rating and 27p price target.
Sunrise Resources (LON:SRES) – CORP*: Placing
Market Cap: £0.9m; Current Price: 0.15p
Sunrise Resources raises £300,000
Sunrise Resources has raised £300,000 through the issue of 250,000,000 shares at 0.12p with a one-for-one warrant at 0.24p.
Sunrise Non-Executive Director Roger Murphy has subscribed for 16,666,667 shares (£20,000) representing a 1.49% interest in the Company.
Following admission the Company will have 1,116,204,430 shares in issue.
NORTHLAND CAPITAL PARTNERS VIEW: This placing is positive news for Sunrise Resources giving it the funds to advance the Company’s precious metal interests in Nevada.