logo-loader

Northland Capital Partners View on the City - Motif Bio, Thor Mining, Sunrise Resources & Photonstar.

Published: 11:20 31 Oct 2018 GMT

no_picture_pai

MOTIF BIO
(LON:MTFB)

SECTOR – HEALTHCARE

RATING – BUY*

MARKET CAP – £85m

CURRENT PRICE – 29p#

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.

 

Motif Bio to present at Jefferies London Healthcare Conference

 

NORTHLAND VIEW

§  Motif Bio will be attending the Jefferies Healthcare Conference in London (Nov 14th-15th) to participate in one-on-one meetings.

§  The two-day event is one of Europe’s largest investor-focused healthcare conferences. In 2017 the event attracted over 1,800 attendees, including leading healthcare executives and investors.

§  The FDA has awarded fast-track approval (6 months compared to the usual 10 months) for iclaprim’s New Drug Application (NDA) for the treatment of acute bacterial skin and skin structure infections (ABSSSI) and has set a target approval date of 13th February 2019. If approved, the Company is targeting a US commercial launch in H1 2019.

With the FDA approval process for iclaprim firmly underway, conferences such as Jefferies are a valuable opportunity for the Company to present to investors and possible commercial partners as Motif prepares for a potential drug launch in 2019. Regarding commercial strategy, we expect the Company to make a decision, be it to partner with or to go it alone, during this ongoing FDA review period.

With iclaprim’s successful clinical trials, a positive regulatory environment for new antibiotics and support of the FDA, there appears to be positive expectations with respect to potential approval. However there remains no certainty and the FDA requirements for approval will have to be demonstrably achieved.

 

COMPANY DESCRIPTION

Clinical stage biopharmaceutical company specialising in the development of novel antibiotics.

 

 

THOR MINING (LON:THR)

SECTOR – MINING

RATING – CORP*

MARKET CAP – £10.4m

CURRENT PRICE – 1.55p#

ANALYST – BARRY GIBB

                     DR RYAN D. LONG  

 

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)

n.a.

n.a.

Dividend yield (%)

-

-

EV/EBITDA (x)

n.a.

n.a.

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Joint Broker and provides commissioned research coverage to Thor Mining and therefore this information should be viewed as a Marketing Communication.

 

Quarterly Report: July to September 2018

 

NORTHLAND VIEW

§  Thor Mining released its Quarterly Activities Report for the period July to September 2018. 

§  Highlights included completion of Molyhil’s Definitive Feasibility Study upgrade plus the 40% acquisition of the adjacent Bonya project, which hosts multiple adjacent outcropping tungsten deposits. It also completed a Scoping Study for Pilot Mountain in Nevada, USA which indicated a potential 12-year life of mine, and the announcement of an Australian Government research grant of A$2.85million together with successful leach testing outcomes on core samples from the Company’s copper project in Kapunda.

§  The Report also detailed the Company’s outlook for the current quarter, which for Molyhil include marketing activities that seek to lock in off-take agreements for both tungsten and molybdenum concentrates, along with continuation of discussions with potential project financiers while also targeting drilling approval for the Bonya deposits.  Stage 2 of metallurgical test work and environmental and infrastructure studies are continuing at Pilot Mountain, while preparation for field pump testing is underway in Kapunda.  The Board also confirmed that Thor’s cash position ‘remains sound with forecast activities fully financed well into 2019.’

 

Thor continues to make progress as expected.  Having intensified its efforts toward securing off-take and project financing at Molyhil, the Board hopes to be able to confirm progress toward a production agreement in ‘the coming months’.  The Bonya Project acquisition, which contains 13 known outcropping occurrences of tungsten and numerous other targets, provides Thor with the potential to define additional mineable material that could extend the life of the Molyhil plant.  By improving the project’s overall metrics in this way, the Company is heightening interest from development financiers seeking such ‘shovel ready’ opportunities.  

 

COMPANY DESCRIPTION

Thor Mining owns 100% of the Molyhil and Pilot Mountain Tungsten Projects, located in Australia and the USA, respectively. The Company is also earning up to a 60% interest in the Kapunda Copper Project and has a material interest in USA Lithium.

 

 

 

SUNRISE RESOURCES (LON:SRES)

SECTOR – MINING

RATING – CORP*

MARKET CAP – £4.0m

CURRENT PRICE – 0.17p#

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.

 

NEWPERL PROJECT - NEW PERLITE DISCOVERIES

 

NORTHLAND VIEW

§  Sunrise Resources announced the discovery of further extensive areas of perlite at its NewPerl Project, which is located approximately 85km from its CS Project in Nevada, USA.

§  Recent mapping has identified new, large areas of outcropping perlite in the area, for which the Company has now staked an additional 40 claims, increasing the overall project area by over 250%.  Additional samples from new discovery areas have now been submitted for characterisation and testing for horticultural grade perlite.

These new discoveries fit well with Sunrise’s development of its more advanced CS Project, potentially offering synergies while adding value to the Company’s core business opportunity.  It also demonstrates proof of concept for the targeting method that originally led to the discovery of the perlite and pozzolan deposits at the CS Project, which clearly now can applied elsewhere.  Meanwhile, yesterday’s announcement of the completion of commercial-scale trials on bulk samples of both the pozzolan and perlite from Sunrise's CS Project paves the way for establishing commercial arrangements with the parties involved. Market conditions also appear to have become more favourable.  Cement companies and fly ash suppliers are already grappling with shortages of key raw materials, which is set to increase further given that 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

 

 

PHOTONSTAR LED GROUP (LON:PSL)

SECTOR – TECHNOLOGY

RATING – CORP.*

MARKET CAP – £0.6m

CURRENT PRICE – 0.16p#

TARGET PRICE – N.A.

ANALYST – MIKE JEREMY

                   

 

Year-end Dec

2016A

2017A

Caledonia Mining tackles 2023 challenges with optimism for 2024 as it...

Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) chief executive Mark Learmonth tells Proactive's Stephen Gunnion the company faced a challenging 2023, primarily due to poor production in the first half of the year at its core asset, the Blanket Mine in Zimbabwe, and an underperformance...

52 minutes ago