MOTIF BIO
(LON:MTFB)
SECTOR – HEALTHCARE
RATING – BUY*
MARKET CAP – £97m
CURRENT PRICE – 33p#
ANALYST: LIAM GASCOIGNE-COHEN
Year-end Dec
2016A
2017A
2018E
2019E
Revenue (£m)
-
-
EBITDA (£m)
(39.71)
(38.02)
Adj. pre-tax Profit (£m)
(40.32)
(44.79)
Adj. EPS (p)
(34.60)
(19.35)
Under
review
DPS (p)
-
-
Net Cash/(Debt) (£m)
15.53
(4.53)
P/E (x)
-
-
Dividend yield (%)
-
-
EV/EBITDA (x)
-
-
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Joint Broker to Motif Bio and therefore this information should be viewed as a Marketing Communication.
Half-Year 2018 Financial Results and Operational Progress
NORTHLAND VIEW
- Motif Bio announced its unaudited financial results for the half year ended June 30, 2018.
- Net loss for the period was US$7.8 million (H117 loss: US$29.7m)
- R&D costs decreased significantly to US$6.9 million (H117: US$23.6m). This was primarily driven by a reduction in expense for the now completed Phase 3 clinical trial program.
- Cash and cash equivalents at June 30, 2018 was US$19.8 million (December 31, 2017: US$22.7m)
Motif has made significant progress towards commercialisation during this period. The Company submitted a New Drug Application (NDA) to the FDA for iclaprim, the Company’s lead antibiotic candidate for the treatment of acute bacterial skin and skin structure infections (‘ABSSSI’). This NDA has been accepted by the FDA which has set a target decision date of February 13, 2019. We expect a positive approval decision by the FDA to allow the Company to market iclaprim in the US.
The Company is now focused on optimizing the commercialisation strategy for iclaprim for a successful US launch. In parallel with partnering discussions, Motif is evaluating ways to build an appropriate team ahead of the potential launch. Finally, in August 2018, the Company also received Notice of Allowance from the US Patent Office for two method of use patents regarding the use of iclaprim to treat patients with bacterial infections. These patents will expire in November 2037 and provide additional exclusivity for iclaprim.
COMPANY DESCRIPTION
Clinical stage biopharmaceutical company specialising in the development of novel antibiotics.
SAVANNAH RESOURCES (LON:SAV)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £67.6m
CURRENT PRICE – 7.85p#
ANALYST – DR RYAN LONG
BARRY GIBB
Year-end Dec
2016A
2017A
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
(1.8)
(2.8)
Adj. pre-tax Profit (£m)
(1.8)
(2.8)
Adj. EPS (p)
(0.46)
(0.53)
DPS (p)
-
-
Net Cash/(Debt) (£m)
0.7
1.2
P/E (x)
-
-
Dividend yield (%)
-
-
EV/EBITDA (x)
-
-
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and provides commissioned research coverage to Savannah Resources and therefore this information should be viewed as a Marketing Communication.
Option of Aldeia application
NORTHLAND VIEW
- Savannah Resources has decided to proceed with the option for the potential purchase of the 2.94km2 Aldeia Mining Lease application, which is located in close to its Mina do Barroso Lithium Project, in Portugal. Savannah first announced it was looking at the Aldeia application on the 18/07/18.
- The exercise of the option agreement follows technical and legal due diligence completed by Savannah that highlighted the excellent lithium prospectivity, with rocks chip samples returning results ranging from 0.65% Li2O to 1.53% Li2O and geological mapping and air photography interpretation suggesting a 300m long and 25m wide pegmatite body. This is a similar geometry to the 16.4mt Grandao Deposit, at Mina do Barroso.
- The Option period is until 25/06/19. After which Savannah will have to commit to the purchase of the Proposed Licence Area, once granted. The option cost is €358,000, of which €58,000 is due upon execution of the Pledge and Purchase Agreement and the balance payment of €300,000 payable in 4 equal instalments.
- The total purchase price for the acquisition of the Proposed Licence Area (once granted) is €3.25m, of which €55k would be paid upon execution and the balance in 71 monthly instalments. These payments are expected by the Company to be made once the Mina do Barroso project is in production.
Figure 1: The location of the Aldeia Mining Lease application
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Source: Company
Savannah has completed its due diligence at the Aldeia application (Figure 1) and the results seem to be exciting, with early-stage work indicting the potential for the project to contain a deposit of similar scale to that of the Grandao deposit, which forms the core of the proposed operations at Mina do Barroso. Much work still needs to be done for the potential of the project is fully demonstrated but Savannah has proven its self, as able to rapidly advance these projects through drilling, Mineral Resource Estimation and Economic Studies. Savannah has structured the acquisition through staged payments to reduce its risk exposure should the project encounter any technical or other issues with the balance of the acquisition cost only expected to be paid once the mining operations are up and running.
COMPANY DESCRIPTION
Savannah Resources is an energy metals group with copper-gold projects located in Oman, lithium projects in Portugal, and a operates a mineral sands project in Mozambique that is a JV with Rio Tinto
THOR MINING (LON:THR)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £10.1m
CURRENT PRICE – 1.65p#
ANALYST – DR RYAN D. LONG
BARRY GIBB
Year-end June
2017A
2018A
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
(1.3)
(1.3)
Adj. pre-tax Profit (£m)
(1.3)
(1.2)
Adj. EPS (p)
(0.4)
(0.2)
DPS (p)
-
-
Net Cash/(Debt) (£m)
(0.1)
1.0
P/E (x)