VELTYCO GROUP PLC (LON:VLTY) – BUY*: Appointment
Market Cap: £23m; Current Price: 34.5p; Target Price: 36p
Appointment of Non-Executive Director
Veltyco this morning announced the appointment of Mr Ilan Tzorya as a Non-Executive Director to the Board with immediate effect.
Mr Tzorya has significant experience in developing and operating online media marketing, technology platforms and financial services markets worldwide. Mr Tzorya was the founder of Tradologic, a leading options trading technology platform. He was CEO of the Company from incorporation to 2015 and he has significant experience in developing technologies in the online and media marketing industries.
NORTHLAND CAPITAL PARTNERS VIEW: The appointment of Mr Ilan Tzorya will strengthen the Veltyco Board. Mr Tzorya brings over a decade of experience from the online marketing and online financial services industries which in turn will strengthen Veltyco’s service offerings in these verticals. Furthermore, the Company’s trading update in December referred to trading ahead of expectations for FY16E, which would put the stock on less than our 19x P/E above. However, looking ahead to FY17E we expect the business to show strong growth, which puts it on an undemanding PE multiple of c. 9x FY17 earnings. We maintain our BUY recommendation.
Keras Resources (LON:KRS) – CORP: Tenement applications
Market Cap: £6.9m; Current Price: 0.48p
Seeking to expand its holding in Warrawoona Goldfield District
Keras Resources is expanding its holding in the Warrawoona Goldfield District, where the 100%-owned Klondyke Gold Project is located, with the application for two tenements that cover an area of 170km2.
These tenements flank major granitic intrusions that are related to significant regional gold mineralisation and contain numerus historic gold occurrences and areas of artisanal mining.
The tenements have passed the public objection phase and are now awaiting heritage clearance.
The existing Klondyke mining tenements have been renewed until 2035.
NORTHLAND CAPITAL PARTNERS VIEW: Once awarded these tenements will be a positive expansion for Keras Resources land holding in the prospective Warrawoona Goldfield, where Keras already has 374,000oz Au at a grade of 2.08g/t Au at its Klondyke Gold Project.