Trans-Siberian Gold Plc
Trans-Siberian Gold Plc (LSE: TSG) is a United Kingdom based resource extraction company, that engages in the exploration, production and development of gold mining assets in Russia. Trans-Siberian Gold is a holding company with its subsidiaries undertaking the operations and mining activities. It’s subsidiary company in Russia, Trevozhnoye Zarevo, has acquired a mining license for approximately 20 square KM of area which includes the Asacha Gold Mine deposit along the pacific rim. The company’s major operations are in the South Kamchatka area in Russia, which also includes the Asacha Gold mine, where the company expects a good potential of resource recovery from the surrounding areas. This is driven by the geological properties of the area complimenting the high-grade epithermal style gold and silver. The company’s current corporate strategy is based on three principles, which are: the value addition to existing operations, based on the foundation, to identify and execute opportunities that can lead to growth in the future and to pursue a lucrative acquisition of opportunities to support further growth. The company has a major competitive advantage because it has one of the lowest cost gold production operations in the industry.
TSG Financial Performance (Interim Results for the six months ended 30th June 2019)
The company announced its interim results for the six months ended 30th June 2019 on 19th September 2019. The company reported a record revenue of US $30 million in H1 2019, an increase of 8.7 per cent year on year as compared to the H1 2018 revenue of US $27.6 million. This was driven by the fact that the Gold ore production increased by 26.1 per cent year on year to 21,889 oz in the first half of 2019, from 17,361 oz in H1 2018. Average gold grades were also higher by 38.7 per cent year on year from 6.2 g/t reported in the first half of 2018 to 8.6 g/t in the first half of 2019. There hasn’t been a major change in the average gold price, which was at the US $1312/oz in H1 2019, as compared to the US $1324 in H1 2018. The company reported a significant increase in the Earnings before interest Taxes Depreciation and Amortization (EBITDA), which was up by 62.2 per cent year on year from US $8.9 million in H1 2018 to US $14.4 million in H1 2019. After the consideration of all expenses and taxes paid, the company reported the profit for the year at US $6.1 million in H1 2019, a massive 138.8 per cent year on year jump from US $2.5 million reported in the first half of previous year. During the reporting period, the company reported a decrease in equity by US $9.7 million to US $77.5 million. This can be mostly attributed to the share buy back agreement, that the company made with two of its major shareholders, to buy back 20.8 per cent of the company’s issued equity, at a consideration of GBX 33 per share or £7.6 million. This resulted in an increase of the free float to 24.3 per cent.
In line with this robust performance during the period and the company’s progressive dividend policy, the board declared an interim dividend of US Cents 2.3 per share. As reported, this dividend would be paid on 30th October 2019 with the ex-dividend date on 26th September 2019.
TSG Share Price Performance
On 25th September 2019, at 10:14 AM GMT, while writing, TSG stock traded at GBX 105.20 per share; an increase of 0.67 per cent or GBX 0.695 in comparison with the previous day’s closing price at GBX 104.50 per share. While writing, Trans-Siberian Gold Plc traded 20.91 per cent below its 52-high price of GBX 133.00, set on September 04, 2019. This was 257.45 per cent above its 52-week low price of 29.43 set on 26 November 2018. The company’s Market Capitalisation was around GBP 91.08 million.
16,170 stocks of the company have been traded by the time of writing. The average volume of trading per day for last one year has been 213,970. The stock has surged by 218.92 per cent in the previous one year from the price of GBX 36.00 per share.
The beta of the stock was at 0.7634, showing that the share price movement is less volatile compared to the benchmark market index.
Corero Network Security Plc
Corero Network Security Plc (AIM: CNS) is a software and computer services company, based in Uxbridge, the United Kingdom that is engaged in providing solutions against Distributed Denial of Service (DDoS) security risks and the unavailability of the internet. The company, through its various solutions and products, such as the DDoS and Network security solutions, is improving the defence systems and risk mitigation systems as well as the availability of the internet for all types of computer systems. The solutions/products are deployed in front of the firewall as primary safety measures against any attack. The company’s products include a Smartwall Threat defence system, that provides a comprehensive protection, by eliminating any potential attacks automatically, enabling a good user volume to fly in without any interruption, at the same time allowing the applications, services, and systems to stay in the network, in progression, even when the system is facing an attack. This product has various variants, such as the Smartwall NTD 120, the Smartwall NTD 280, the Smartwall NTD 1100 and a SmartwallvNTD which is a virtual edition. The other product of the company is the Smartwall Service Portal that is a platform for the above products to be delivered-as-a-service through an online platform/portal. The company also provides a SecureWatch Analytics, which is a web-based analytics tool that provides robust and simple dashboards to gather information against any kind of DDoS attacks.
CNS Trading Update and Financial Performance (Interim results for the six months ended 30th June 2019)
On 16th August 2019, the company announced a trading update for the six months ended 30th June 2019 and an outlook for the full present financial year. The company reported that the revenue was affected by the expected Juniper pipeline not being converted into orders and further into revenue, but the company remained hopeful of robust growth in the pipeline and the volume.
It was also reported that the management is expecting the revenue for FY 19 to be approximately 20 per cent above the revenue reported in FY 18 along with an increased EBITDA loss for the FY.
On 25th September 2019, the company announced the interim results for the six months ended 30th June 2019. The company reported a revenue of US $4.2 million in H1 2019, a decline of 16 per cent year on year as compared to the revenue in the first half of 2018 at US $5.0 million. The revenue was significantly driven by receipts from the SmartWall Threat Defense System product variants, and DDoS mitigation solution. This was, in spite of the recurring revenues increasing to 66.9 per cent in H1 2019 as compared to just 47.7 per cent in H1 2018. The Earnings before Interest Taxes Depreciation and Amortization (EBITDA) loss was reported at US $2.0 million in H1 2019, posting an increase in the loss of 42.85 per cent as compared to the EBITDA loss in first half of 2018 at US $1.4 million. This performance flew into the final results as the loss before tax reported at an increase of 30 per cent year on year from US $3.0 million in H1 2018 to US $3.9 million H1 2019, and eventually, the company reported a loss per share of US Cents 1.00. The company reported a net cash position of US $3.6 million as on 30 June 2019. Consequently, the company has not declared any interim dividend for the period, but the board has maintained a positive outlook for the FY 19 performance.
CNS Share Price Performance
On 25th September 2019, at 11:30 AM GMT, while writing, CNS stock traded at GBX 2.55 per share; a decline of 5.74 per cent or GBX 0.155 in comparison with the previous day’s closing price at GBX 2.70 per share. While writing, Corero Network Solutions Plc traded 8.30 per cent above its 52-low price of GBX 2.35, set on September 23, 2019. This was 81.25 per cent below its 52-week high price of 13.60 set on November 16,2018. The company’s Market Capitalisation was around GBP 10.85 million.
310,060 stocks of the company have been traded by the time of writing. The average volume of trading per day for last one year has been 418,900. The stock has declined by 75.17 per cent in the previous one year from the price of GBX 10.25 per share.
The beta of the stock was at 0.9611, showing that the share price movement is marginally less volatile compared to the benchmark market index
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