SMALL CAP MOVERS: Zinnwald Lithium goes all in on Deutsche Lithium while Helium One flies high after discovery at its Rukwa project
Zinnwald Lithium got a big thumbs-up from the market for its move to take total ownership of Deutsche Lithium.
The shares rose by a third to 16p after it shelled out €8.8million to buy the 50 per cent of Deutsche Lithium that it does not already own. Deutsche Lithium is developing the Zinnwald Lithium Project in Germany.
The company is paying €1.5million in cash for the stake with the rest to be satisfied in Zinnwald shares.
On the up: Zinnwald Lithium got a big thumbs-up from the market for its move to take total ownership of Deutsche Lithium
Helium One was another stock flying high after it identified evidence of helium in drilling mud while drilling its maiden exploration well, at the Rukwa project in Tanzania.
The company said it identified the helium shows in a shallow section of the Tai-1 well, from 70.5 metres, and added that the micro-gas chromatograph showed helium concentrations up to 2.2 per cent (22,084 parts per million).
The shares ended the week 38 per cent to the good.
Engineering company MS International, whose diverse activities range from building petrol stations to providing services to the defence sector, reported a return to profit in the past year, sending its shares gushing 28 per cent higher this week.
The company moved from a full-year loss of £3.25million to a profit of £1.59million and lifted its final dividend from 1.75p to 6.5p.
The outlook was said to be ;much brighter than we could have imagined twelve months ago.’
Hurricane Energy regularly features in the small caps round-up, usually, it must be said, on the debit side but this week it jumped 49 per cent to 1.8p after a bit of progress on the legal side of its restructuring plan.
The sanction hearing of the High Court of Justice of England and Wales concerning the restructuring plan proposed by the company concluded on Wednesday, with judgement reserved.
Sector peer 88 Energy was 18 per cent firmer on the week after it said that the latest analysis of samples from the Merlin-1 well, drilled earlier this year on the North Slope of Alaska, ‘definitively demonstrates the presence of hydrocarbons.’
Focus: Alaska-focused 88 Energy was 18% firmer on the week after it said that the latest analysis of samples from the Merlin-1 well
Specifically, the company noted that the analysis comes from five of 18 selected trims from side-wall core samples obtained from prospective zones in Merlin-1 which could not be tested by a downhole fluid extraction tool. They also correspond with depths where good oil shows were noted during drilling, it added.
Mercantile Ports & Logistics surged 19 per cent to 0.695p on the back of a contract win.
The company has won a contract with Esquire Shipping and Trading, a cargo logistics solutions provider based in Mumbai; and Sai Om Petro Specialties, a Mumbai-based company engaged in the business of bulk cargo handling. The contract is for an initial period of ten years, extendable by a further five years and with revenue of about £7million over the next three-year period.
Robinson, the custom manufacturer of plastic and paperboard packaging, was the week’s big loser, shedding around one-fifth of its value after it warned of margin pressure.
Since the beginning of the year, the market price of resins used by the group has increased by 60 per cent on average and the company warned that raw material shortages and price increases will continue to have a short-term impact on earnings in the first half of 2021.
Verditex, the solar panels maker, retreated 18 per cent to 2.5p after it reported a theft from its facility at Lainate, near Milan.
The company, whose chairman is former Conservative minister Lord David ‘two brains’ Willetts, has conducted a physical stock check which indicates a shortfall against book stock of around £300,000.
Given that the company has minimal revenues at present and had a cash pile of just £1.7million at the end of 2020, the loss is quite significant. Let’s hope ‘two brains’ remembered to renew the insurance.
In the meantime, the local rozzers have been informed.