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TRADING UPDATES: DSW eyes lower profit than expected; Mpac optimistic

16th May 2024 21:22

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Wednesday and not separately reported by Alliance News:

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Caledonia Mining Corp PLC - Zimbabwe-focused gold producer - Celebrates increase to mineral resources and mineral reserves estimate at Blanket mine. Blanket's 1300 S-K mineral reserve and mineral resource ounces are estimated to be 111% and 36% higher respectively. 1300 S-K stands for technical disclosure requirements for mining companies under subpart 1300 of Regulation S-K. Chief Executive Officer Mark Learmonth says: "Our 2023 drilling campaign at Blanket yielded excellent results, with better than expected grades and widths indicated from our deep level drilling programme. I am delighted that the 2023 campaign has resulted in a significant increase to Blanket's mineral resources and mineral reserves estimates." He adds: "Management believes that the inferred mineral resources may, based on past successful conversion rates, further extend the life of mine past 2040," which compares to a currently estimated mine life to 2034.

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DSW Capital PLC - Warrington, England-based financial advisory that provides advisory services in areas such as corporate finance and due diligence - Expects network revenue and total income from licensees for financial year ended March 31 to be in line with current market expectations, while adjusted pretax profit will be below February guidance. Anticipates revenue of GBP16.0 million, down 13% from GBP18.3 million in financial 2023. The decline reflects a previously reported subdued mergers & acquisitions activity that has persisted since late 2021, DSW explains. Further, DSW expects adjusted pretax profit to dive to GBP500,000 from GBP1.4 million, and below the bottom of the range of GBP600,000 it had provided in February. The company adds it entered the new financial year with 25 licensee business compared to 20 in financial 2023, which creates "a stronger platform for organic growth as market conditions for M&A become more favourable." DSW says its board "remains confident in the long-term prospects for the business and continues to add new Partners and new licensee businesses to fuel future growth." Chief Executive Officer James Dow says: "We remain frustrated that economic conditions continue to impact confidence in the SME M&A marketplace. However, our licensee businesses have shown remarkable resilience and entrepreneurship and, as a result, we have only seen a 10% reduction in Network Revenue." Further, the company confirms that Pete Fendall will join the company as interim chief financial officer on Friday, replacing Nicole Burstow.

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Empire Metals Ltd - exploration and resource development company focused on the Pitfield titanium project in Western Australia - Positively notes analytical lab results from 22 reverse circulation drillholes at the Pitfield project, confirming higher grades of titanium dioxide. Notes 6.76% titanium dioxide from reverse circulation drillhole RC24TOM022. Managing Director Shaun Bunn says: "I am delighted to announce the latest results from our recent RC drilling which have provided further evidence of extensive high-grade titanium mineralisation within our two key target areas. What is particularly exciting is the identification of significantly higher TiO2 grades within the highly oxidised saprolite zone found near surface." He adds: "In the meantime, delineation of a resource development exploration target for the Cosgrove and Thomas prospects continues to gather momentum."

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Equals Group PLC - London-based payments firm for small and medium enterprises - Extends a deadline for for any possible bid by Madison Dearborn Partners LLC to announce an intention to make an offer to June 12.

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Golden Metal Resources PLC - Nevada-focused metals exploration company, which owns 100% owned Pilot Mountain project, located within the prolific Walker Lake Mineral Belt in Nevada, US - Hails geophysical inversion results at Garfield copper project, undertaken by SJ Geophysics Ltd. CEO Oliver Friesen says: "The geophysical inversion results have identified two very exciting magnetic anomalies at depth within the project. Importantly, both of these anomalies are coincident with strong copper anomalism (in rocks and soils) at surface within both the high-grade and power-line zones." One of the highlights is a rock sample with a result of 27.2 grammes of gold per tonne and 29.9 grammes of silver per tonne, as well as 2.4% copper. Sunrise Resources PLC, a Cheshire, England-based company focused on industrial mineral projects in Nevada, on Thursday notes the announcement. It has a 2% net smelter return royalty in the Garfield copper project.

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Gulf Investment Fund PLC - Isle of Man-based investment company focused on countries in the Gulf Cooperation Council - Completes acquisition of 1.2 million tendered shares which will be cancelled.

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LifeSafe Holdings PLC - Essex, England-based fire safety technology developer - Posts retail offer via bookbuild to raise up to GBP300,000 via issuing shares at an issue price of 10 pence per retail offer share, which it says is a discount of about 32% to the 30-day volume weighted average price to Monday of 14.7p. The retail offer is conditional upon approval by shareholders at a general meeting proposed for May 30.

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LMS Capital PLC - investment company focused on real estate, energy and late stage private equity - Appoints Jamie Wilson as chair effective Wednesday, while former chair Robbie Rayne remains on the board as non-executive director. Wilson is chair & managing partner of Source Squared, a US private equity business, and had joined LMS's board as senior independent director in 2019. "I, and the rest of the board, are very aware of the challenges facing smaller listed companies, and we remain focussed on delivering an attractive return for our shareholders," Wilson says. Further, on Thursday, the company announces a final dividend of around 0.63p per share for 2023, unchanged from a year ago.

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Mpac Group PLC - Tadcaster, England-based packaging automation company - At the company's annual general meeting, the company says it started the year well, noting strong momentum built in the second half of 2023 which it says has continued into 2024 "with year-to-date revenue and underlying profit before tax above the prior year." Further, says it is on track to meet market expectations for 2024. "The company continues to maintain a strong balance sheet in order to fund its growth. Working capital has expanded in the early months of 2024 due to the timing of order intake and project milestones in H1. Therefore, we anticipate reporting a net debt position at end of H1 2024 before reverting to a net cash balance in the second half as the working capital position unwinds," Mpac says.

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Phoenix Copper Ltd - US-focused base and precious metals producer and explorer - Pretax loss in 2023 remains flat at USD1.6 million. Looking ahead, Phoenix says: "The commodities market has started 2024 strongly, and there appears to be growing consensus that the long-term lack of investment in new mining projects has caused a shortfall at precisely the time that the world requires more copper than ever to meet the electrification targets that have been adopted globally. With its location in one of the most stable, mining friendly locations in the world, the Empire mine is well placed to take advantage of this supportive environment." Further, it says that metal prices continue to rise amid a higher demand for global electrification and raw materials needed to meet that demand. Meanwhile, Phoenix says its corporate copper bond issue has been fully subscribed for a principal value of USD80 million. "The bonds will be drawn down in tranches in accordance with a drawdown schedule in order to fully fund the construction of the company's Empire Open-Pit Mine in Idaho," the company explains.

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Quantum Exponential Group PLC - invests in quantum technology - Says its directors remain in talks with an investor group for a potential substantial investment in the company. "Whilst there can be no certainty as to the outcome of these discussions, the Directors are confident that matters will reach a positive conclusion in the near future," Quantum says. Pertinently, proposes to adjourn the general meeting planned for Friday to June 14.

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Supply@Me Capital PLC - London-based fintech firm providing inventory monetisation solutions - Secures new equity funding with a UK investment firm for around GBP1.6 million. Following which, Supply@Me will issue 9.00 billion new shares at a price of around 0.02p per share. After the issue, the company will issue 450.0 million new warrants to the UK investment firm. Chief Executive Officer Alessandro Zamboni says: "I am sure that our inventory funders and partners will see this capital infusion as a positive step forward for SYME, considering its key role as inventory specialist within the current inventory monetisation programmes and future opportunities."

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By Tom Budszus, Alliance News slot editor

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