29th Dec 2022 10:22
(Alliance News) - AIM-listings Kazera Global PLC, Bluebird Merchant Ventures Ltd and Eco Atlantic Oil & Gas Ltd head a list of 'Conviction Buy' recommendations for 2023 published by Align Research Ltd on Thursday.
Yorkshire-based Align is a research house that invests in the stocks that it recommends to 'align' its commentary with its own purse, calling this "transparent, 'eat your own cooking' research".
Align said it expects 2023 to be the year that Kazera "really gains traction."
Kazera is a diamond and rare earths explorer. Align holds a 25% stake in Kazera, making it the company's largest shareholder.
Align noted the recent sale of its Tantalite Valley Mine asset for a base USD13 million plus interest and royalties for the life of mine in its commentary. It believes that post this sale, "all the pieces are now in place for 2023 to be the year Kazera really gains traction."
Also on Thursday, Kazera said its annual results will not be published before the end of the year, due to delays at its wholly-owned subsidiary African Tantalum (Proprietary) Ltd.
It now expects to release its results for the financial year that ended June 30 during February. As a result, its shares will be suspended from trading on AIM in London from Tuesday next week, the first trading day of 2023.
Kazera expects a loss of GBP1.1 million on income of GBP107,000. Kazera explained that financial 2022 was hampered by limited operational availability of the processing facility at Muisvlak. Without this, the company was unable to sell diamonds during the year.
Also on Align's list is Bluebird Ventures, a South Korea-focused gold development company.
The research house said: "The management team sees the production economics at the current gold price to be highly attractive and is fast tracking the reopening of its two 100%-owned two gold mines – Kochang and Gubong – which are located in a great pro-mining jurisdiction."
It therefore expects these two gold mines to offer the potential for near term cash flow and resource expansion.
Meanwhile, Align thinks Eco Atlantic Oil & Gas "is in good shape."
Eco Atlantic is a Toronto-based oil and gas exploration company.
"Eco's impressive acreage in Guyana, South Africa and Namibia has huge potential and the company has a good track record of being able to successfully negotiate farm out deals with majors to develop its projects," Align said.
It added that the company has around USD8 million of cash and no debt.
By Sophie Rose, Alliance News reporter
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