SECTOR – SOFTWARE & SERVICES
RATING – CORP*
MARKET CAP – £5.2
CURRENT PRICE – 6.1p#
ANALYST – MIKE JEREMY
Year-end Dec
2016A
2017A
Revenue (US$m)
21.3
13.4
EBITDA (US$m)
2.8
0.3
Pre-tax Profit (US$m)
1.3
(2.5)
EPS (US$c)
1.7
(3.6)
No forecasts provided
DPS (US$c)
-
-
Net Cash/(Debt) (US$m)
7.7
3.5
P/E (x)
4.6
(2.2)
Dividend yield (%)
-
-
EV/EBITDA (x)
1.1
10.7
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior day’s close. *Northland Capital Partners Limited Acts as Broker to TechFinancials and therefore this information should be viewed as a Marketing Communication.
Venture Agreement
NORTHLAND VIEW
§ TechFin announced it has entered a non-binding heads of terms (HofT) with Footies Tech Ltd, a blockchain-based ticketing platform for sports venues and teams. A new company subsidiary will be created in order to develop and market a blockchain-based digital venue management system. The initial phase of the product will focus on enabling sports organisations to take full control over their event economics.
§ At the start, TechFin will hold 75% of the shares of the new subsidiary, and Footies will hold 25%.
§ TechFin has also committed to support the financial needs of the new subsidiary for the development of a proof of concept agreement between the subsidiary and a European football club, as well as employees’ salaries, administration costs, business development and other expenses to be agreed. TechFin’s support has been capped at US$500,000 and will take the form of a shareholder loan by TechFin.
§ In addition, TechFin will license its technology to the subsidiary, at no cost, such that it can build a solid software infrastructure within efficient timelines. The final caveat is that TechFin’s commitment is subject to execution by the subsidiary with at least one football club within three months of signing the agreement.
This is a positive development for the Company as it explores additional commercial uses for its trading platform solutions. We expect additional updates from the Company as final terms are agreed and the development progresses.
COMPANY DESCRIPTION
TechFinancials is a leading provider of platforms for financial trading and instruments, and has recently diversified into the deployment of blockchain technology, notably in the development of its proprietary diamond trading system, CEDEX.
SUNRISE RESOURCES (LON:SRES)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £3.53m
CURRENT PRICE – 0.14p#
ANALYST – BARRY GIBB
DR RYAN D. LONG
Year-end Sept
2016A
2017A
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
(0.4)
(0.3)
Adj. pre-tax Profit (£m)
(0.4)
(0.3)
Adj. EPS (p)
(0.04)
(0.02)
DPS (p)
-
-
Net Cash/(Debt) (£m)
0.05
0.12
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 Joint Broker to Sunrise Resources and therefore this information should be viewed as a Marketing Communication.
CS PROJECT UPDATE
NORTHLAND VIEW
- Sunrise Resources provided a project update development for its CS Pozzolan-Perlite Project in Nevada, USA which entered commercial-scale testing in September 2018.
- Trials were completed for two bulk samples: (i) 2 tons of raw perlite successfully expanded in commercial production furnace to produce horticultural grade perlite suitable for the cannabis industry and, (ii) 100 tons of pozzolan ground in commercial scale production mill and tested positive for compliance with ASTM C618 standard for natural pozzolan.
- The Company reported that the initial three phase of its 15-year mine plan have now been completed, including the examination of low capex alternatives covering perlite and pozzolan process options.
- Sunrise management also notes positive market developments for its proposed output, including the view that demand for natural pozzolan expected to increase as fly ash shortages continue to build, while the horticultural grade perlite market is being stimulated by increasing legalisation of cannabis production.
The successful completion of commercial-scale trials on bulk samples of both the pozzolan and perlite from Sunrise's CS Project paves the way for commercial arrangements with the parties involved, while tests are also is underway with other potential customers. Market developments also appear to have become more favourable. Cement companies and fly ash suppliers are already grappling with shortages of key raw materials, which are set to increase further given that the largest supplier to western markets, the coal-fired Navajo Power Station in Arizona is scheduled to close 2019. Meanwhile the perlite market in North America continues to be strong as industrial-scale cannabis growers build-out major new capacity following Canadian legalization and the relaxation of legislation within a growing number of US states. In anticipation of meeting strong demand for its output, Sunrise continues to advance its plant design and mine permitting.
COMPANY DESCRIPTION
Sunrise Resources is an exploration company focused on its 100%-owned CS Pozzolan-Perlite Project, located in Nevada