In today’s briefing:
- Solactive Global Uranium & Nuclear Components Index Rebalance Preview: Potential Changes
- Shougang Fushan Resources (639 HK): Partial Offer at HK$2.40
- Syngenta Pre-IPO – The Negatives – Margins Remain Razor Thin and Parent on Sanction List
- Chariot Limited (AIM: CHAR): Adding portfolio depth and near term newsflow
- Endurance Gold (EDG CN) – Mineralization Confirmed At Depth
- ADX Energy Limited (ASE: ADX): Securing funding to prepare for drilling
- Valeura Energy (TSX: VLE): Entering a phase of cash build-up after large tax payment made.
Solactive Global Uranium & Nuclear Components Index Rebalance Preview: Potential Changes
- Based on prices and turnover from 10 July, there could be one deletion from the index in July. Plus there will be capping and float changes.
- There are four stocks that meet the inclusion criteria but all are non-pure play companies and the index is already at the limit of 15 non-pure play companies.
- There will be a large impact on a lot of stocks but the flows are not very large due to the limited assets tracking the index.
Shougang Fushan Resources (639 HK): Partial Offer at HK$2.40
- Shougang Fushan Resources (639 HK) has launched a partial offer to acquire a maximum of 125.0m shares (2.47% of outstanding) at HK$2.40 per share, a 17.6% premium to the undisturbed price.
- The partial offer is conditional on approval by more than 50% of disinterested shares and the shareholder approval of the whitewash waiver. There is no minimum acceptance condition.
- The 2020 partial offer, which was at a 9.3% premium to the undisturbed price and -17% below the current offer, was overwhelmingly approved. Therefore, the current offer should be approved.
Syngenta Pre-IPO – The Negatives – Margins Remain Razor Thin and Parent on Sanction List
- Syngenta Group (1844795D CH) is looking to raise around US$9.2bn in its upcoming China A-share IPO.
- Syngenta Group (Syngenta) is one of the largest agricultural firms globally, developing, producing and commercializing a portfolio of crop protection, seeds, crop nutrition products.
- In this note, we will talk about the not so positive aspects of the deal.
Chariot Limited (AIM: CHAR): Adding portfolio depth and near term newsflow
- Chariot has raised US mm of new equity priced at £0.14 per share.
- The company is also looking to raise up to an additional US$3 mm through an open offer.
- The proceeds of the raise will be used to drill four new low cost/low risk exploration wells onshore Morocco in a licence expected to be awarded imminently.
Endurance Gold (EDG CN) – Mineralization Confirmed At Depth
- 3,030m of the 15,000m 2023 program have been completed to-date, totaling 11 holes.
- This morning, Endurance Gold Corporation (EDG:TSXV) provided an update on the ongoing exploration program at its Reliance Gold Project and assay results for one drill hole completed at the Imperial target.
- Eleven holes have now been completed for over 3,030m of the ongoing 15,000m drill program, the largest program to date.
ADX Energy Limited (ASE: ADX): Securing funding to prepare for drilling
- ADX is issuing A$1.5 mm of loan notes with a term of 18 months.
- A$1.0 mm of the loan notes carry an interest rate of 8% per annum with 30 mm options with an exercise price of A$0.01 per share and 30 mm options with an exercise price of A$0.014 per share.
- ADX expects to secure farm-in partners for some of its Upper Austrian drilling projects during the summer.
Valeura Energy (TSX: VLE): Entering a phase of cash build-up after large tax payment made.
- 2Q23 production was 22,097 bbl/d, near our forecast of 22.8 mbbl/d.
- Drilling operations at the Manora oil field are currently in the final stages of a three-well programme.
- Valeura has paid US$178.1 mm in tax during 2Q23 in line with the our expectations.
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