Recent Updates On FTSE AIM All-Share Stocks: JLP, RBD, and CAPD

  • Aug 27, 2019 BST
  • Team Kalkine
Recent Updates On FTSE AIM All-Share Stocks: JLP, RBD, and CAPD

Corporations’ latest acquisitions, developments or the announcements related to them have a direct bearing on the movement of their stock prices on the exchanges, either upward, downward or sideways, based on the significances they have on their future operating performance. Here we are going to discuss three companies operating in diverse sectors, which came up with some announcements recently that impacted their stock price movements.

Below is a performance comparison of the three companies on the London Stock Exchange over the past five days along with that of FTSE AIM All-Share index.

Jubilee Metals Group PLC

Jubilee Metals Group PLC (JLP) is a London, the UK-based diversified metals development company. The group focuses on reprocessing of historical surface mine waste and materials with an aim to obtain long-term, low-capital intensive, low-risk commodity output from waste materials of mine surface. The company holds the mining right granted on March 2017 to the main PGM (Platinum Group Metals) project in the Eastern Bushveld complex and has secured surface platinum-bearing tailings to recover PGMs and lead, chromite, vanadium, and zinc - bearing tailings in Zambia.

Recent News

On 23rd August 2019, the company released that the transfer and sale of the wholly issued share capital in Sable Zinc Kabwe Limited to Jubilee Metals had been accomplished, allowing Jubilee to begin with the execution of an entirely integrated multi-metal refinery in Zambia. Some key highlights of this acquisition are that Sable Zinc Refinery has been accomplished and signifies the main step for the development of the Kabwe Project., The Refinery composed with Jubilee's Kabwe surface resources exceeding six million tonnes at surface, and also establishes an accommodate footprint in Zambia., It decreases the Kabwe Project execution timelines & capital requirement. The company supposes to recommission the present copper circuit in the fourth quarter of 2019 to attain earnings in the build-up stage of the lead circuit & zinc vanadium with 1st production of vanadium and zinc targeted for second quarter of 2020.  This multi-metal refining operation affords Jubilee the prospect to quickly increase its metals recovery footprint in Zambia, which the group is actively pursuing.

Six Month Operations Update (as on 30th June 2019)

The company’s combined H1 2019 revenue increased by 75 per cent to £14.36 million as compared to H2 FY18. Operational earnings surged by 47 per cent to £5.64 million against the H2 of FY18. In H1 2019, production of chrome concentrate surged to reach 164,936 tonnes with both the Windsor chrome and the DCM fine chrome operations brought on-line. In H1 2019, production of PGM reached to 11.559 thousand ounces with the second quarter of 2019 and delivering 6.5 thousand ounces, so far.

In June 2019, the joint venture Platinum Group Metal (PGM) retrieval plant for the Windsor Platinum Group Metal project began to be commissioned, through the grinding circuit and this circuit was critical for attaining high retrievals of PGMs being fetched into operation in July 2019. During H1 2019, Windsor PGM project had delivered PGM rich material of 212.6 thousand tonnes. The company expects to continue its strong performance in the full year due to the speeding up of the Kabwe vanadium, zinc and lead projects, following the acquisition of the Sable Zinc Kabwe Limited refinery in Zambia.

Share Price Performance

 Daily Chart as at 27-August-19, before the market close (Source: Thomson Reuters)

On 27 August 2019, at the time of writing (before the market close, at 1:00 pm GMT), JLP shares were trading at GBX 2.93050, down by 0.66 per cent against the previous day closing price. Stock's 52 weeks High and Low are GBX 3.75/GBX 2.02. Stock’s average traded volume for 5 days was 2,853,839.00; 30 days – 2,382,117.83 and 90 days – 3,211,123.41. The average traded volume for 5 days was up by 19.80 per cent as compared to 30 days average traded volume. The company’s stock beta was 1.19, reflecting higher volatility of the stock as compared with the benchmark index. The outstanding market capitalisation was around £54.7 million.

Reabold Resources PLC

United Kingdom-based Reabold Resources PLC (RBD) is an investment holding company. The group is mainly focused on investing in upstream gas & oil projects. The Company’s projects comprise Wick UK, Parta Romania, Reabold California, Colter UK, and Oulton UK.

Recent News

The company announced that the final hearing held on 27th August 2019 at the High Court of Justice permitted the group's order to cancel its share premium account. Therefore, the amount standing to the credit of the group's share premium account has been made null and void.

On 22nd August 2019, the company declared that it has increased its investment in Rathlin Energy (UK) Limited, the operator of the West Newton field, with participation in a progressive subscription agreement. The company presently holds an economic interest of 24 per cent in West Newton via its holding in Rathlin of 36 per cent and its decisive economic interest will be affirmed once the next fundraising round is concluded.

Romania Operation Update (as on 27th August 2019)

A company announcement made by ADX (ADX Energy Ltd) on 26th August 2019 concerning an update on the drilling of the Iecea Mica 1 appraisal well. The well has reached an overall depth of 2,335 metres wireline logging and measured depth has been accomplished. The company is showing to the IM-1 well via its equity interest of 37.5 per cent in Danube Petroleum, which owns the Parta exploration licence of 50 per cent and the defined 19.4 square kilometres Sole Risk Area of 100 per cent, which comprises the Iecea Mare Production licence.

Operational Update at West Newton, onshore UK (as on 12th August 2019)

The company released an operational update, which offers an updates on the West Newton A-2 appraisal well, situated within the PEDL 183 licence region in Humberside, onshore in the United Kingdom. The company holds an economic interest of 24 per cent in the licence via its holding of 36 per cent in Rathlin Energy (UK) Ltd, operator of the well.

Financial Highlights (FY2018, £’000)

(Source: Final Results, Company Website)

In FY18 (year ended December 31, 2018), the company’s loss for the period stood at £1,949 thousand, an increase from the previous year loss of £1,152 thousand. During the financial year 2018, the company successfully commenced production from its California assets, generating revenues of £194 thousand and gross profit of £111 thousand. In FY18, the company’s net cash outflow from operating activities previous to movements in working capital stood at £940 thousand versus cash outflow of £449 thousand in FY17, reflecting a surge in administrative expenses. The company raised £11,909 thousand during the current period from financing activities. On 31st December 2018, Cash and cash equivalents were £7,112 thousand. The company’s total assets and current assets were £19,519 thousand and £10,016 thousand respectively.

Share Price Performance

Daily Chart as at 27-August-19, before the market close (Source: Thomson Reuters)

On 27 August 2019, at the time of writing (before the market close, at 2:10 pm GMT), RBD shares were trading at GBX 1.237, down by 4.85 per cent against the previous day closing price. Stock's 52 weeks High and Low are GBX 1.40/GBX 0.51. Stock’s average traded volume for 5 days was 14,911,559.80; 30 days – 20,212,787.07 and 90 days – 22,208,508.86. The average traded volume for 5 days was down by 26.23 per cent as compared to 30 days average traded volume. The company’s stock beta was 0.76, reflecting lesser volatility of the stock as compared with the benchmark index. The outstanding market capitalisation was around £49.7 million.

Capital Drilling Ltd

Capital Drilling Limited (CAPD) is an emerging markets-focused drilling services contractor. The group is involved in providing various drilling services and solutions to exploration and mining companies, starting from the exploration phase of the mining cycle through to production. The company’s geographical areas are differentiated in two segments, namely Africa and Rest of world. Africa provides the drilling services and Rest of the world offers drilling services and related logistic, equipment rental and Information Technology support services. The group also offers information and survey technology services for mining exploration companies.

Financial Highlights (H1 FY2019, US$ million)

(Source: Interim Reports, Company Website)

In H1 FY19, the company’s revenue increased by 0.6 per cent to $54.8 million as compared with the corresponding period of the prior year. ARPOR (Average revenue per operating rig) reduced by 8.5 per cent to $183,000 against $200,000 in H1 FY18, due to lower revenue in the start-up phase of new contracts. EBITDA increased by 1.6 per cent to $12.7 million in H1 FY19 as compared to the same period in 2018. EBITDA margin was stable at 23.1 per cent, due to the sustainability of cost management initiatives. Net profit after tax stood at $5.1 million, an increase of 82.1 per cent against $2.8 million in H1 FY18. Capex rose by 18.4 per cent to $6.4 million in H1 FY19 against $5.4 million in H1 FY18, due to an increase in the support asset base in West Africa.

In the first half of 2019, the net cash surged by 150 per cent to $8.5 million as compared with the corresponding period of the last year, with an additional $2 million long-term debt repaid. Cash from operations was up by 45.8 per cent year over year to $10.5 million, due to improved working capital management. Earnings per share increased by 87.3 per cent to 3.7 cents against 2 cents in H1 FY18. Interim dividend per share was 0.7 cents, an increase of 17 per cent from the corresponding prior-year period.

Outlook

In FY2019, the company’s revenues are expected to be in the range of $110 million to $120 million. The revenue is also projected to surge in H2 FY19. Solid cash generation from mining companies is driving augmented exploration budgets. In H2 FY19, solid pipeline of new contracts bring confidence in the company’s growth strategies. The planned expansion into West Africa continues to generate various new prospects.

Share Price Performance

Daily Chart as at 27-August-19, before the market close (Source: Thomson Reuters)

On 27 August 2019, at the time of writing (before the market close, at 2:55 pm GMT), CAPD shares were trading at GBX 56.3201, down by 1.19 per cent against the previous day closing price. Stock's 52 weeks High and Low are GBX 58.80/GBX 33.50. Stock’s average traded volume for 5 days was 82,608.80; 30 days – 178,816.63 and 90 days – 105,005.03. The average traded volume for 5 days was down by 53.80 per cent as compared to 30 days average traded volume. The company’s stock beta was 0.69, reflecting lesser volatility of the stock as compared with the benchmark index. The outstanding market capitalisation was around £77.66 million, with a dividend yield of 3.15%.

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