finnCap Research Company Notes - 20 March 2019
Mar 20, 2019 / News
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Sector: Mining
Kazera Global (KZG) : Corp
Investee company operational update
Key data
- Share price (p) 2.2
- Target price (p) U/R
- Market cap (£m) 5.6
- Enterprise value (£m) 4.5
Kazera Global has released an exploration update from its investee company African Tantalum (Pty) Limited (‘Aftan’). Aftan has a controlling interest in the Namibia Tantalite Investment mine at Tantalite Valley in southern Namibia. We do not have a price target for Kazera Global.
Martin Potts mpotts@finncap.com
Sector: Technology & Telecoms
Mporium Group (MPM) : Corp
Contract extension for MporiumX
Key data
- Share price (p) 5.3
- Target price (p) U/R
- Market cap (£m) 44.4
- Enterprise value (£m) 43.6
Mporium has announced the extension of a key contract for the MporiumX division with a leading global sports media business (originally announced 8 Feb 2019). As per the extended contract, IMPACT will be deployed across the client’s global network, to power digital campaigns in response to real-time sporting moments, and consequently drive subscriptions for the online streaming service. Under the extension, IMPACT Sport Syncing technology will be deployed by the sports media business across territories including Germany, Japan, Austria, Italy and North America, testament to the performance benefits that IMPACT provides direct to brands through enhancing digital campaigns and driving lead generation. As a result of the expansion, the agreement has become the largest commercial contract for MporiumX (excluding the strategic agreement with Allay), and highlights the growing traction around MporiumX, as well as the deepening of existing relationships. We look forward to ongoing newsflow from the Group as it continues to demonstrate the value of IMPACT across different verticals.
Andrew Darley adarley@finncap.com
Sector: Industrials
Surface Transforms (SCE) : Corp
Successful equity placing raises £1.9m
Key data
- Share price (p) 15.5
- Target price (p) 24.0
- Market cap (£m) 21.1
- Enterprise value (£m) 18.2
SCE has announced that it has successfully placed 12.3m new ordinary shares at 15.5p, raising gross proceeds of £1.9m. The company has tapped investor demand to enable it to strengthen its balance sheet, putting it in a much stronger position at a time when some uncertainly still remains over when OEM 6 starts production. We now forecast SCE ending the current financial year with £2.9m net cash. Given that we expect SCE to become cash generative in FY2020E, we believe the company is now in a very comfortable position financially. Our price target remains 24p.
Raymond Greaves rgreaves@finncap.com
Sector: Mining
Tri-Star Resources (TSTR) : Corp
SPMP funding and operational update
Key data
- Share price (p) 50.5
- Target price (p) 68.0
- Market cap (£m) 47.5
- Enterprise value (£m) 51.3
Tri-Star has released a further update on progress being made with the funding structure and commissioning of the Sohar antimony and gold production facility in northern Oman. Tri-Star’s principal asset is its 40% shareholding in SPMP; this in turn owns the Sohar plant. We maintain our 68p price target.
Martin Potts mpotts@finncap.com