Snapshot of Two AIM Listed Stocks – Aura Energy Limited & Concepta PLC

Summary

• Aura Energy reached the final stage of the gold funding deal.
• Aura Energy’s shareholders rejected nominees of ASEAN for the board of directors.
• Concepta rebranded and relaunched MYLO.
• Concepta would launch the new version of MYLO by the end of 2020.

AURA is a basic materials stock, whereas CPT is a healthcare stock. Based on 1-year performance, both AURA and CPT were down by about 39.58 percent and 48.89 percent, respectively (as on 11 August 2020, before the market close at 12.30 PM GMT+1). Let’s skim through the recent updates of the two companies.

Aura Energy Limited (LON:AURA) – Seeking funding for Tiris Uranium project

Aura Energy is an Australia based company that is engaged in the exploration and development of uranium, gold and battery metal projects situated in Europe and Africa. Aura has 85 percent stake in Haggan Project in Sweden and a 100 percent stake in Tasiast South Gold project and Tiris project in Mauritania. Aura Energy is included on the FTSE AIM All-Share index.

Gold Funding Deal

As reported on 10 August 2020, the Company reached the final stage for a gold funding deal. The funding is for CAD 4.5 million for the Tasiast South tenement in Mauritania. The funding deal would be performed between Aura and PubCo. PubCo, a joint venture that was created for funding from Chilean Metals, is now named Achean Gold Inc. Aura would own 50 percent of the Achean Gold after Achean receives funding of CAD 4 million in four tranches before October 2021. Tasiast tenement has two lightly explored mineralized greenstone belts. The area is close to Kinross’s Tasiast Gold Mine where Kinross is planning to expand the gold production to 530,000 ounces per year.

Quarterly Report (ended June 2020) as reported on 31 July 2020

During the quarter ended 30 June 2020, the Company initiated the discussion for funding of the Tiris Uranium project from the Export Credit Agency financing apart from that there was no significant development on the project as travel to Africa was restricted due to the pandemic. Aura Energy formed a joint venture with Chilean Metals the tenements in Mauritania. Aura Metals placed the Haggan Battery Metals project under maintenance during the quarter, and it was seeking claims related to the project. The shareholders of the Company rejected the six nominees put forward by ASEAN and Mr JL Bennett for the board of directors. ASEAN is attempting to pull royalty of close to USD 27 million from the Tiris Uranium project while providing funding of only AUD 3 million.

Project Map

(Source: Company Website)

Share Price Performance

1-Year Chart as on August-11-2020, before the market close (Source: Refinitiv, Thomson Reuters)

Aura Energy Limited’s shares were down by 3.44 percent and trading at GBX 0.43 per share (as on 11 August 2020, before the market close at 12.30 PM GMT+1). AURA’s 52-week High and Low were GBX 0.69 and GBX 0.15, respectively. Aura Energy had a market capitalization of AUD 10.23 million.

Business Outlook

The Company is hopeful about the prospects of the Tiris Uranium project and expects it to be among the leading uranium project worldwide. The Tiris is in the construction ready state. The agreement reached for the gold funding transaction is a non-binding deal, and there is no guarantee that it would be a success. The Company recently highlighted that ASEAN is attempting to take control of the board of the Company without making an offer.

Concepta PLC (LON:CPT) – Plans of international expansion and commercialization off MYLO

Concepta PLC is a UK based healthcare company that develops products and platforms for the mobile health market. MYLO is a product developed by Concepta that focuses on hormone testing and provides insights to unexplained infertility. Concepta is included in the FTSE AIM All-Share index.

Commercial Update as reported on 6 July 2020

Concepta rebranded and relaunched the self-fertility test kit MYLO that was erstwhile myLotus. MYLO has advance technology, and the Company stated that it has the most accurate fertility tracking in the UK, and it has a high success rate. MYLO provides quantitative luteinizing hormone testing, and the paid-for campaign was launched on 13 July 2020 to drive the commercial footprint of the product. The Company would launch the new version of MYLO by the end of 2020. In April 2020, the Company entered an App DX deal with Abingdon Health to develop a new fertility testing product.

FY2019 Annual results (ended 31 December 2019) as reported on 29 May 2020

In FY19, the Company generated revenue of £31,970, which was £4,838 in FY18. The total revenue was made from the UK. EBITDA loss for the year was £2.2 million, and Concepta had year-end cash of £0.6 million. It spent £0.5 million on the research and development during the year. The Company raised net proceeds of £1.7 million through the placement of shares in April 2020. myLotus now rebranded as MYLO reported the first birth and pregnancies in FY19. As on report date, the app had more than 3,00000 downloads. The Company performed the pilot test programme in Germany in 2019, and it has plans to expand internationally in 2020 and 2021. The Company would transfer the lateral flow test manufacturing site at Doncaster to Abingdon Health as per the sales and purchase agreement it entered in April 2020. The deal is for a total amount of £0.3 million.

Development of MYLO

(Source: Company Website)

Share Price Performance

1-Year Chart as on August-11-2020, before the market close (Source: Refinitiv, Thomson Reuters)

Concepta PLC’s shares last traded at GBX 1.15 per share (as on 11 August 2020, before the market close at 12.30 PM GMT+1). CPT’s 52-week High and Low were GBX 2.40 and GBX 0.60, respectively. Concepta had a market capitalization of £5.63 million.

Business Outlook

The Company has stated that it would launch the second version of the MYLO tracker by the end of 2020. The development of the new version is already in the advanced stage of development. The latest version would be for Android and iOS, and it could be connected using Bluetooth. The new fertility testing kit it is developing under agreement with Abingdon Health would expand the portfolio of the Company.