Suggestions for a speculative punt?

Michael121

csgohan4 said:

BrockStoker said:

Probably a curiosity more than anything, but Evolution Blockchain Group Inc. (EVBC) up 10,400% in one day:

https://finance.yahoo.com/quote/EVBC?p=EVBC

98% fall tomorrow I'm guessing! Either that or 800% gain

how can a stock be valued at 0 USD, is that possible?

Says 45c on my screen.

Thrugelmir

A UK share with potential despite a sharp increase in value in recent months

AQUIS EXCHANGE LIMITED (AQX)

tom9980

Kr1 a blockchain investment company, current crypto assets stand at £260m, market cap £206m. They also have some as yet unvalued assets because they are not listed so no value can be estimated.

BrockStoker

csgohan4 said:

BrockStoker said:

Probably a curiosity more than anything, but Evolution Blockchain Group Inc. (EVBC) up 10,400% in one day:

https://finance.yahoo.com/quote/EVBC?p=EVBC

98% fall tomorrow I'm guessing! Either that or 800% gain

how can a stock be valued at 0 USD, is that possible?

I'm not sure, but pretty sure I also saw it valued at 0 recently, although it seems that didn't last. If you check the 5 day chart the low appears to be around $0.0030 on the 26th, and even a little below that on another day. It's certainly been up n down - the other day it was up something like 22,000%. I'd like to chuck a couple of hundred quid at it when it's under 1c, but neither of my platforms have it!

Steve182

Thrugelmir said:

Anybody have any suggestions for UK micro companies ( <50m) worth taking a look at?  

Yes, well sort of UK (AIM listed at least) and domiciled in Guernsey

Afritin mining, market cap £56m

Namibian tin miner. One of only two open cast tin mines in the world. Its reserves are huge.

The mine closed down in 89 when tin price fell and it was no longer viable.


The new owner has recently re-started tin production.

Now the interesting bit - The tin containing ore is also rich in lithium and tantalum, at an economic grade. This was a surprise to the new  owner, it appears these metals were not tested for previously.

So now they can process the tailings they already dug up for the tin extraction to also recover lithium and tantalum

Tin is used in electronics (solder) and lithium obviously in batteries.

Tin prices are currently high, as are many industrial metals

Pros -

Open cast so significantly cheaper to dig up the ore than shaft mining (there is only one other open cast tin mine)
3 commodities for the extraction effort of one
Demand for tin and lithium likely to increase so prices may remain high or even increase further
Huge reserves, potentially many decades of mining ahead. Potential for significant expansion if markets/commodity prices dictate  
Namibia is one of the safest/most stable countries in Africa
Good access to roads and port
AIM listed

Cons -

Not yet profitable
Profits and SP will be affected by commodity prices so likely to be volatile
SP has increased 3 fold in past six months so now may not be the best time to invest. I have already invested at SP of 6.5p

Plenty of research available, and some interesting interviews, eg 

https://www.proactiveinvestors.co.uk/companies/news/946280/afritin-mining-says--lithium-is-very-exciting-with-incredible-intersections--at-tin-project-at-uis-946280.html

   

Old_Lifer

I approach small mining companies with a good deal of caution.    Some succeed, many don't.  They usually need to raise lots of money and it is lack of money which causes investors to lose-out  no matter how much of the resource is in the ground.    See what happened to Sirius Minerals  and  (since you are talking Africa)  African Minerals

Steve182

Old_Lifer said:

I approach small mining companies with a good deal of caution.    Some succeed, many don't.  They usually need to raise lots of money and it is lack of money which causes investors to lose-out  no matter how much of the resource is in the ground.    See what happened to Sirius Minerals  and  (since you are talking Africa)  African Minerals

I agree. It definitely is a speculative punt.

However they are already producing and are in quite an enviable position compared to most of their peers, ie open cast VS shaft and 3 commodities can be extracted from the same ore. I think these factors are likely to give investors and creditors some confidence that the business is viable in the long term.

There is most definitely a 100% downside risk, but many multiples of potential upside if they can get it right and commodity prices remain high enough.

Thrugelmir

Interestingly Miton UK Microcap Trust have a few days ago increased their holding in the Company to over 3% of the issued share capital. 

Steve182

Another suggestion for a speculative punt, this one's a micro cap AIM listed gold miner.

Hummingbird Resources, market cap around £80m

Based on current gold production of around 100,000 oz, their revenue is $180M (£128M) based on todays POG ($1800/oz) 

Their average AISC (all-in sustaining costs) for 2021 is forecast to be around $1300/oz
So doing a fag packet calc, $500/oz profit at current POG X 100,000 oz gives $50m or £35m
That's an approx 2 X  EBITDA earnings valuation at current SP

Looking forward, that's a pessimistic estimate IMO. POG forecast to increase, AISC forecast to drop.

Typically their AISC has been around $1000-$1100. It's increased due to a number of recent issues but the company say they expect it to return to the previous level.

POG is forecast to remain high or increase. The consensus is that it will increase from current price.

A POG of $2200 and AISC of $1100 in 2022 would result in an approx 1 X  EBITDA earnings valuation at current SP.

The rising AISC has caused the company to fall out of favour with investors, now the shares are exceptionally cheap. However they've increased by about 20% in the past couple of weeks with a much increased volume.

Other things to consider,

The company is debt free
They have 2 other mining interests in the pipeline which appear to have been completely ignored in the current valuation.

I bought in today at 23.5p

Certainly worth a look IMO (that means fill your boots right away before the SP recovers if you are up for a bit of a punt)

coastline

Hornby PLC posts jump in quarterly sales (proactiveinvestors.co.uk)
Set the chart to MAX
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