Ormonde Mining PLC (AIM:ORM) took a step closer to becoming a cash shell when shareholders approved the €2.3mln sale of its interests in the La Zarza copper-gold project in Spain.
The sale - at a premium to book value - is now expected to be completed imminently, which will leave it as a cash shell needing to make an acquisition constituting a reverse takeover within six months under Aim rules.
As at 30 June 2022, it had €3.4mln of cash, with a further €800,000 due on closing of the sale and three further payments of €500,000 each on the first, second and third anniversary of closing.
It has been looking at a range of projects covering, among other things, precious metal, precious stones, base metals and battery metals opportunities but is keen to minimise any riske. With shareholder value in mind, the Board is looking to identify opportunities in which Ormonde's investment will have the ability to advance the project in a timely manner and enhance its profitability potential without taking on excessive risk.
Chief executive Brendan McMorrow said the sale was an important milestone for the company.
He added: "Although we have not yet identified the optimal project for our next phase, I am encouraged by the quality and volume of the opportunities that we have reviewed and the strength of the newly constructed board and its advisory team. Our balance sheet strength allows us the benefit of selectivity, ensuring that when we do move forward with a transaction, we expect it to be a highly attractive one."
Meanwhile it reported a fall in six month losses from €630,000 to €363,000, mainly due to significant reductions in director and senior management salaries and the elective non-payment of director fees during the period.
Its shares are 13.08% better at 0.82p.
12.46pm: Botswana Diamonds sparkles after regulators approve Thorny River purchase
Shares in Botswana Diamonds PLC (AIM:BOD) have a bit of a sparkle about them after its proposed acquisition of a key project in South Africa received regulatory approval.
The company announced in September that it planned to buy Vutomi which has the mineral rights to the Thorny River diamond project.
In line with South African requirements it will sell 26% of Vutomi to its local empowerment partner Baroville Trade & Investments.
Chairman John Teeling said: "I am pleased that we have received all the regulatory approvals allowing this this transaction to be completed. This will allow the company to expedite the mine permitting of Thorny River, with the initial applications having already taken place".
Botswana shares are up 5.54% at 0.95p.
10.58am: Glantus slumps after relocation costs hit earnings
Glantus Holdings PLC (AIM:GLAN) has seen its shares slump after it said the cost of relocating part of the business to Costa Rico would hit profits.
The software as a service company said half year revenues rose 54% to €6.6mln, although adjusted earnings fell 39% to €0.7mln partly due to the cost of integrating acquisitions.
It expects revenues to continue to grow for the rest of the year.
But it added: "The relocation to Costa Rica has meant delays to the start of a number of audit mandates which will directly impact the timing of some transactional revenues which were anticipated in the second half of 2022
"Also, the Company anticipates that it will incur additional operational expenses in the second half of 2022 due to restructuring, refinancing and one time redundancy costs associated with the Costa Rica relocation
"Accordingly, as a result of the above, and a weaker outlook for the full year due to current global macroeconomic challenges, the board now expects revenue and EBITDA to be significantly below market expectations for the full year."
Chief executive Maurice Healy said: "We have taken the strategic decision to execute the Accounts Payable audit function relocation to Costa Rica to deliver more productive and technology-led automated audits. Whilst the relocation has been more challenging than anticipated it will be more productive for the company in the long term and we expect it to improve profitability going forward."
In the short term the market has punished the update, with the company's shares dropping 62.83% to 12.82p.
10.00am: CML Microsystems sees profits ahead of forecasts, helped by exchange rate benefit
CML Microsystems Plc (LSE:CML) has seen its shares surge after saying profits would be ahead of forecasts.
The company, a specialist in semiconductors for the global communications markets, said trading for the first half had been strong.
It said: "Revenues are expected to be well ahead of last year on a constant currency basis and have been further boosted by an exchange rate tailwind.
"Gross margin has remained robust whilst overheads are in line with expectations. As a result, profitability is expected to be significantly ahead of management's earlier expectations."
It is a similar picture for the full year, with both revenues and profitability expected to better than market forecasts.
Its shares are up 14.29% or 50p to 400p.
8.59am: 7Digital in tune after moving out of the red
7Digital Group PLC (AIM:7DIG) has hit the right notes with its latest update.
Shares in the digital music specialist have jumped 21.62% to 0.23p after it reported a 21% rise in half year revenues, and reduced its operating loss from £1.9mln to £0.2mln. At the EBITDA level it moved from a £1mln loss to a £0.03mln profit.
The company, which last week unveiled a £500,000 fundraising with a loan from shareholder Magic Investments, said it had secured five new licensing customers and three contract expansions or extensions in the period.
Chief executive Paul Langworthy said: "This was a great six months for 7digital. We delivered strong revenue growth and achieved adjusted EBITDA profitability as the new and expanded contracts we won last year and in the early part of this year began to ramp up.
"We continued to win new customers and sign renewals with existing customers, many of which are multi-year agreements. Some of these deals also include significant usage terms, which we expect to drive further increases in revenue as these clients scale their own services.
"We entered the second half of the year delivering against a strong contracted order book and with a solid new business pipeline. The business has already secured a 43% increase in contracted platform licensing revenue for 2022 over 2021. As a result, we are on track to deliver strong revenue growth for 2022 and we look forward to reporting on our further progress."
Elsewhere Power Metal Resources PLC (AIM:POW) has put on 5.09% to 1.55p after a positive update.
The company said results from an electromagnetic survey over its T2-3 target at Molopo Farms in Botswana had identified a "large, significant geophysical conductor".
Drilling this will follow the completion of two diamond holes currently in progress at another priority target at Molopo, T1-6.
Paul Johnson, Power Metal’s chief executive, said: "Drilling is successfully underway at the priority target area T1-6 where a very large geophysical conductor was identified from recently completed geophysical surveys, the initial results of which we announced on 16 August 2022.
"Today's news potentially has even greater significance with the confirmation of a major conductor at T2-3 which adds another high-priority target to the list for drill testing during the ongoing campaign.
“Significantly, airborne magnetic survey results over this new conductor suggest that it could be very sizeable."