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Haydale Graphene Industries impresses with premium placing

A look at the day's major movers, including SolGold, Modern Water, Haydale Graphene, KEFI Minerals, Ariana Resources, Northern Bear, TMT Investments and Signature Aviation,

D4T4 Solutions PLC

Haydale Graphene Industries PLC (LON:HAYD) impressed the market by issuing new shares at a 25% premium to its last close price.

The graphene technology specialist said it has raised £450,000 in a subscription from two existing shareholders who bought 22.5mln new shares at a price of 2p each.

The firm, which was trading 16% higher at 1.85p on Monday afternoon, said it will use the proceeds to boost its working capital reserves.

Ariana Resources PLC (LON:AAU) gained 30%, reaching a price of 2.72p, on the back of a potential partnership deal with a major Turkish construction firm.

The AIM-listed explorer said the proposed deal will involve the sale of a stake in the Salinbas gold project and in the Zenit joint venture for US$5mln and US$50mln respectively.

Binding agreements are planned for no later than February next year.

Northern Bear PLC (LON:NTBR) dipped 7% to 68.08p after reporting weak interim results due to “a frustratingly slow” first quarter.

The building services company could not bear contract delays, pushing pre-tax profit down 22% to £1mln and revenue down 2% to £28mln.

The full-year outlook remains positive, as the improvements seen in the second quarter have kept momentum up, but there is “limited” short-term visibility because of current economic uncertainty.

1.10pm: Modern Water makes a splash with Korea contract

Modern Water Plc (LON:MWG) made a splash with news that it has won its largest ever contract for its saltwater concentration technology in South Korea.

A deep seawater salt production project will have capacity to treat roughly 13 square metres per hour in a project executed by the AIM-listed company in conjunction with Chinese partner Sunup.

“This is Modern Water's largest single [All-Membrane Brine Concentrator] plant yet and follows on from various successful plants we have designed with our partners in India and China,” said Modern Water boss Simon Humphrey, as the shares rose 13% to 1.58p.

Elsewhere, TMT Investments PLC (LON:TMT) tiptoed 6% higher to 3.68p as the company drew attention to one of its investments, ride-hailing platform Bolt, after Uber was stripped of its London licence.

After Transport for London said it did not have confidence that the Uber had “a robust system for protecting passenger safety”, TMT’s representatives noted that Uber’s 3.5mln passengers and 45,000 drivers “could be looking for a new platform”.

“This could be a huge opportunity for the likes of Bolt, one of TMT Investment’s core portfolio holdings.”

At the top of the FTSE 100 leaderboard there’s a smattering of retailers after the earlier positive sector research from the CBI.

Kingfisher plc (LON:KGF) is the biggest riser, up 4% to 204.5p, while Ocado Group PLC (LON:OCDO) and JD Sports Fashion PLC (LON:JD.) are not far behind, with Marks & Spencer Group PLC (LON:MKS) top of the FTSE 250 list.

The CBI distributive trades survey showed a reported sales balance improving to -3 in November, the highest level since April, up from the -10 level in October where the market expected it to remain.

This “is a tentatively encouraging sign that retail sales have regained momentum” said economist Samuel Tombs at Pantheon Macroeconomics.

12.25am: Restaurant Group drops as Wagamama update shows slower growth

Restaurant Group PLC (LON:RTN) shares were being sent back by lunchtime on Monday, falling 6% to 137p after an update on trading at its Wagamama chain.

Like-for-like sales in the second quarter grew 6.3% in the UK with the opening of six new restaurants and one delivery kitchen helping revenues grow 11% to £93.5mln, the company revealed in a bondholder report, which was slower than growth of 15.3% in first-quarter turnover and 12.9% in LFL sales.

Underlying profits (EBITDA) grew 27.2% year-on-year to £16.7mln in the second quarter, versus 56.4% in the first.

Wameja Ltd (LON:WJA) was on the wane after the publication of third-quarter numbers for the HomeSend global payment hub, in which the company is a joint venture partner.

Shares in the AIM- and ASX-listed company, which changed its name from eServGlobal in July, dropped 7% to 5.6p despite the company saying HomeSend’s results were “remaining consistent quarter over quarter”.

Gross value flows were up only 0.2% over the prior quarter compared to 28% increase in the second quarter.

Among the blue chip, precious metals miner Fresnillo Plc (LON:FRES) was the biggest faller, sent diving 3% to 543p as gold prices dipped as risk perceptions began to be rebalanced.

The gold price fell to a one-week low on the back of increased optimism about US-China trade talks.

“Trade optimism is sending global equities higher and capital is fleeing away from safe havens into risk assets,” said market analyst Margaret Yang Yan at CMC Markets.

11.15am: Inspirit Energy's spirits lifted by debt reduction

Inspirit Energy Holdings PLC (LON:INSP) shares jumped 14% to 0.13p after the AIM-listed maker of combined heat and power said it has “substantially” reduced its debts.

The company converted £804,000 of the £845,000 loan notes collected last year by issuing 1bn new shares, leaving £41,000 of debt outstanding.

Chairman and chief executive John Gunn will acquire 142mln of the shares, upping his stake to 28% of the company, while finance director Nilesh Jagatia will buy an 28mln shares for a direct interest of 1%.

Two small-cap miners were topping the gainers list: SolGold plc (LON:SOLG), on the back of more investment by BHP Group PLC (LON:BHP), and Rainbow Rare Earths Ltd (LON:RBW) following results on a drilling programme.

SolGold’s shares jumped 8% to 21.25p on the news that BHP Group PLC (LON:BHP) bought extra shares in the Aussie miner for US$22mln.

The new cash injection should settle short-term financial concerns, in particular regarding a pre-feasibility study at the flagship Alpala mine in Ecuador.

Rainbow Rare Earths, meanwhile, reported results from a historic drilling programme at its Kiyenzi mine in Burundi, where it analysed two boreholes.

Among the highlights were 3.87 metres grading at an average of 4.85% total rare earth oxides (TREO) and 11.64 metres at an average of 3.86% TREO.

10am: D4t4 Solutions de-rates as first-half numbers drop

D4t4 Solutions PLC’s (LON:D4T4) shares dropped 5% to 204p in early trading on Monday after the data company posted weak interim results.

Adjusted pre-tax profit plummeted 78% to £740,000 as revenue tumbled 37% to £9mln, which management said was in line with expectations as this year will be more weighted towards the second half.

Boosted by new contracts, renewals of contracts won last year and a "significant pipeline" of new business in negotiation with existing clients, D3t4 anticipates stronger trading in the rest of the year.

The market was also not impressed with an update from KEFI Minerals PLC (LON:KEFI) on its Tulu Kapi gold project in Ethiopia, with shares dipping 3% to 1.54p.

After many delays, a two-year programme will kick off in January, while total investments remain unchanged.

However, the Ethiopian government can now allocate holdings to its subsidiary to strengthen social licence and ANS Mining will provide a higher initial investment than previously planned.

Topping the fallers list was Signature Aviation PLC (LON:SIG) with a seeming 96% crash in its share price, but this was as the company announced a share consolidation alongside a name change.

The services firm, previously BBA Aviation PLC, replaced every five existing ordinary shares with four new ordinary shares, leaving it with an issued share capital of 838mln shares of 37p each, of which 10mln are held in treasury.

Proactive News Headlines:

Rainbow Rare Earths Ltd (LON:RBW) has released results from a historic drilling programme at Kiyenzi in Burundi. Two boreholes were analysed and among the highlights were 13.87 metres grading at an average of 4.85% total rare earth oxides and 11.64 metres at an average of 3.86% TREO. A further 1,000 metres of drill core has been sent for analysis to enable rapid evaluation and formulation of comprehensive resource statement.

Corero Network Security PLC (LON:CNS) has announced a placing and share subscription to raise up to £3.25mln, before expenses, to be used mainly for the development of its SmartWall product.

Arkle Resources PLC (LON:ARK) is examining options for its 23.44% stake in the Stonepark zinc project after it attracted interest from “other industry participants”. Last month, FTSE 100 giant Glencore PLC (LON:GLEN) invested C$1mln in Stonepark operator Group Eleven Resources Corp (CVE:ZNG).

MTI Wireless Edge Limited advanced on Monday as profits for the first nine months of its current year leapt by 44%. For the period ended 30 September, the radio frequency and communications group reported a pre-tax profit of US$2.4mln, up from US$1.7mln a year ago, while revenues climbed 12% to US$29mln.

Fund manager M&G has taken its stake in Bacanora Lithium PLC (LON:BCN) to just under 20% through a share placing at 25p. The US$10mln proceeds will support pre-construction works at the Sonora lithium project in Mexico, which will include bulk earthworks and an upgrade to the primary access road.

IronRidge Resources Ltd (LON:IRR) has returned multiple high-grade reverse circulation (RC) drilling intersections from the latest drilling programme at the Ewoyaa, Abonko and Kaampakrom projects in Ghana, West Africa. A total of 12,669 metres of RC drilling was completed in 97 drill holes for the third phase programme. Among the highlights from Ewoyaa and Abonko were 40 metres (m) grading 1.45% lithium oxide, 34m grading 1.43% Li2O, and 31m at 1.5% Li2O.

Kodal Minerals PLC (LON:KOD) has received its environmental and social impact permit (ESIA) for the development of the Bougouni lithium project in southern Mali. The country’s environment minister has signed off the ESIA, with the company working now on mining assessment and technical reports for a full licence application by the end of 2019.

Primary Health Properties PLC (LON:PHP) has agreed a £4.92mln funding deal for the construction of a new primary care centre at Mountain Ash in Wales. The FTSE 250-listed healthcare facility builder said the property, which will contain two GP practices and accommodate 11,500 patients, will be wholly-owned after completion and then let to the Cwm Taf Morgannwg University Local Health Board for an initial term of 25 years.

Open Orphan Plc (LON:ORPH) said it has signed five unnamed pharmaceutical and biotechnology companies as early adopters of its Genomic Health DataBANK platform that is planned for launch in the first quarter of next year. They will ensure it is “fit-for-purpose” ahead of the first patient upload. This builds on the previously-announced collaboration with Empiric Logic, which is working with Open Orphan to complete the product.

Ormonde Mining plc (LON:ORM) told investors that sales of 20-tonne shipments of tungsten concentrate produced from the Barruecopardo mine in Salamanca, Spain, have recently completed with international buyers. Further containers are presently being prepared for sale. These sales are described as important milestones as the Barruecopardo ramp-up continues.

ScotGold Resources Limited (LON:SGZ) has clarified the amounts it has to spend on the exploration of its permits in Scotland. What is in the accounts reflects the potential amount if it retains all 13 licences until 2024, said the junior, and is subject to change as exploration results come in and depending on cash resources.

Sativa Group PLC (LON:SATI) is exploring a potential listing on AIM next year following a number of significant developments for the medicinal cannabis group. Sativa’s possible move from NEX follows a number of senior appointments to the group as it focuses on consumer products containing cannabidiol (CBD), a medicinal chemical derived from cannabis plants.

Tlou Energy Ltd (LON:TLOU) has highlighted that gas flows continue at the Lesedi coal bed methane project, with recent short-term rates seen ‘significantly’ ahead of its previously reported performance. For context, the company has previously told investors that the initial gas flow rates were marked at 20,000 cubic feet per day, from each of the Lesedi-3 and Lesedi-4 production pods. “To date, the company is very pleased with the performance of both wells,” Tlou said in a statement.

Fund manager M&G has taken its stake in Bacanora Lithium PLC (LON:BCN) to just under 20% through a share placing at 25p. The US$10mln proceeds will support pre-construction works at the Sonora lithium project in Mexico, which will include bulk earthworks and an upgrade to the primary access road.  Orders will also be placed for the longer lead-time items in the concentrator, pyrometallurgy and hydrometallurgy sections of the lithium plant.

Mosman Oil And Gas Ltd (LON:MSMN) has told investors that production from the Stanley project is now “almost in line with expectations”. Gross production for the month of November to date averages at around 290 barrels of oil per day (bopd), up from 250 bopd at the start of the month. The new Stanley-4 well is planned for February 2020.

Pembridge Resources PLC (LON:PERE) is planning to raise between £3mln and £5mln via a share placing to fund development of the Minto mine in Canada. The placing will price the shares at 12.5p each and is expected to conclude in the next two weeks following a roadshow.

Savannah Resources PLC (LON:SAV) has become a sponsor to FST Lisboa, a team of engineering students from the University of Lisbon focused on the design and build of innovative, lithium-ion battery-powered formula race cars. The AIM-quoted resource development company, which is focused on becoming Europe's most significant producer of spodumene lithium from its Mina do Barroso Project in Portugal, noted that this season, FST Lisboa includes a team of 43 engineering students, working towards developing their next-generation electric vehicle (EV) prototypes: the 100% electric FST10e, and the driverless FST 10d.

Zoetic International PLC (LON:ZOE) is ready to launch a range of CBD sweets, capsules and cosmetics in the UK in time for Christmas, and is mulling expansion of manufacturing capacity in the US to cope with potential demand from new distribution deals. The beauty products being launching in the first week of December include a hand cream, night cream, facial serum and lip balm, with further product launches planned for next year alongside a broadening of the massage oil that has been on sale since October under the Zoetic brand.

NQ Minerals PLC (LON:NQMI) has doubled the estimate of nickel and cobalt resources in the area surrounding its Hellyer mine in Tasmania. Latest estimates are that the Barnes Hill project contains 14.3mln tonnes grading 0.72% nickel and 0.05% cobalt, which includes the first resources from the Scotts Hill and Mt Vulcan deposits.

In a separate statement, NQ Minerals chairman David Lenigas also said he “sees room for significant improvements through 2020” at the Hellyer base and precious metals project in Tasmania as the company reported that record lead and zinc concentrate production “continued”. In all 55,422 tonnes of ore were unearthed in from November 1 to 23, with grades averaging 2.9% lead, 2.02% zinc, 2.29 grams per tonne (g/t) of gold and 88 g/t of silver.

Shield Therapeutics PLC (LON:STX) said it will be adopting the Quoted Companies Alliance Corporate Governance Code. The QCA champions the interests of the 1,250 small- and medium-sized listed firms in the UK. Its code is described as a “practical, outcome-oriented" approach to corporate oversight.

LIVE Company (LON:LVCG) announced that it has reached agreement with the vendors of Bright Bricks Holdings Limited to settle the deferred element of the acquisition consideration, being £0.833m, in full, through the issue of 1,893,940 new ordinary shares at an issue price of 44.0p each.

Ferro-Alloy Resources Limited (LON:FAR), the vanadium mining and processing company with operations based in Southern Kazakhstan, announced that at the Annual General Meeting held on 22 November 2019, all resolutions were duly passed.

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