Shares in Power Metal Resources PLC (AIM:POW) soared 14.29% on Tuesday as the exploration company reported significant results from an electromagnetic survey at the Molopo Farms Complex project in southwestern Botswana.
Preliminary survey results from Molopo Farms, which has the potential to be a large-scale nickel-platinum group element project, confirmed one of the drill holes penetrated the edge of a newly identified magnetic conductor.
"Today's exploration news is, in my view, potentially one of the more significant the company has released in its 3-year history as Power Metal,” said chief executive Paul Johnson.
“We have confirmed that drillhole K1-6 at Molopo Farms, drilled during the 2020/2021 programme, intersected the edge of a very large-scale and strong magnetic conductor. Significantly, drillhole K1-6 highlighted that the edge of the magnetic conductor was mineralised, with widespread nickel sulphides demonstrated from assay testing and follow up petrological analysis” Johnson added.
Bid approach spurs Darktrace
Shares in cybersecurity firm Darktrace PLC (LSE:DARK) surged 17.38% to 487.80p after it announced that it is in the early stages of discussions with private equity firm Thoma Bravo about a possible takeover offer.
Responding to media speculation, the company said: "Discussions are at a preliminary stage and there can be no certainty that any offer will be made, nor as to the terms of any such offer."
Victoria Scholar, head of investment at Interactive Investor, said: "Perhaps a privatisation of Darktrace is the best way to avoid the uncertainty of this year's market gyrations, with the potential to float the company once again in the coming years once confidence is restored in equities.”
AJ Bell financial analyst Danni Hewson said: “Though any deal is still in the early stages, the language around this preliminary approach doesn’t suggest huge resistance from Darktrace at this point.”
She added “if it goes through, the acquisition of Darktrace would, yet again, thin the ranks of an already under-represented technology sector in London.”
“The controversy surrounding its co-founder Mike Lynch hasn’t helped Darktrace, as he continues to fight extradition to the US on fraud charges” Hewson said adding “in the context of all these challenges, it is perhaps not that surprising that Darktrace may want to move out of the spotlight.”
Bank of Georgia jumps after strong results
Bank of Georgia pleased investors with better than expected first half results which analysts expect will lead to earnings upgrades of more than 10% for the current year.
Pre-tax profits of GEL574mln were 53% higher than the first half of 2021 boosted by forex gains while there was steady growth in net loans of 4.3%.
Credit trends remain benign with the cost of risk in quarter two of 0.6% below the first quarter level of 0.8% while arrears were stable at 2.6%.
Analysts at Peel Hunt said “the outperformance in terms of FX gains will lead to increases in our full year pre-tax profit estimates of more than 10%."
The broker retained its buy rating noting momentum is good and the valuation undemanding.