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#POW Power Metal Resources PLC – £900,000 Equity Financing

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces it has completed a placing and subscription to raise £900,000 before expenses (the “Financing”).


§ Power Metal has raised £900,000 before expenses for the advancement of priority exploration projects and for general working capital purposes with the Financing undertaken at the closing market bid price of 1.4 pence on 13 January 2023 (see below for detailed Financing terms).

§ The fundraising will be applied to a comprehensive exploration programme at the Tati gold project and will allow Power Metal to accelerate preparations for exploration at the Company’s strategic uranium portfolio in the Athabasca Basin region of Saskatchewan, Canada.

§ At Tati the Company’s exploration plans include soil geochemistry, geophysics, mechanised trenching, reverse circulation (RC) and diamond drilling.  This work will examine near surface gold mineralisation across a far larger proportion of the 8km gold-in-soil anomaly which extends through the centre of the Tati licence footprint and, through planned drilling, test for gold mineralisation at depth.

§ Power Metal is seeking to undertake exploration programmes at a number of its Athabasca uranium properties during the upcoming spring and summer, following snowmelt. The work programmes will be designed to follow up on high-grade uranium rock sample results achieved by the Company during the 2022 campaigns, as well as inaugural work programmes at other properties in the portfolio which have not been worked by Power Metal to date.

§ Diamond drilling has recommenced at the Molopo Farms Complex project in Botswana after the Christmas break and specifically at drillhole DDH2-3A into target area T2-3A. In addition, at the Company’s Victoria Goldfields joint venture a diamond drill programme is underway targeting extensions of the former high-grade working Berringa gold mine.

Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented: 

Power Metal continues to drive its exploration portfolio, with drilling underway currently and with additional programmes now to be launched in the near term at the Tati gold project in Botswana and expedited exploration at the Athabasca Uranium portfolio in Saskatchewan, Canada.

With multiple exploration work streams underway Power Metal expects to release further updates to the market over the coming weeks and months as operational activities advance.

In parallel Power Metal continues to work on the various corporate initiatives targeting the generation of material value for the Company and its shareholders.

The recent strong move higher in the price of gold from under US$1,650 at the start of November 2022, to US$1,920 at the close on Friday is an important event, with gold acting as a key indicator for the strength of our sector. I believe the future is bright for the junior resource sector and the proactive junior resource explorers within it.

Power Metal has, through relentless teamwork over recent years, built and advanced our global exploration portfolio and we believe that work has positioned the Company uniquely well for the near, medium and long term.


§ The Company has raised £900,000 before expenses through the issue of 64,285,714 new ordinary shares of 0.1p each in the Company (the “Financing Shares”) at an issue price of 1.4p per share, the closing market bid price on 13 January 2023.


§ Each Financing Share has an attaching warrant to subscribe for one new ordinary share of 0.1p each in the Company (“Ordinary Share”) at an exercise price of 2.0p per share with a 24-month term from 30 January 2023 (“Financing Warrant”) creating 64,285,714 Financing Warrants.


§ Should the Power Metal share price exceed a volume weighted average share price of 6p for five trading days Power Metal may issue a written notice to Financing Warrant holders providing ten trading days to exercise Financing Warrants and twenty trading days to make payment of exercise monies, or the Financing Warrants may be cancelled.


§ The Financing was undertaken by the Company’s joint broker First Equity Limited.  Power Metal has issued First Equity Limited with 6,428,571 warrants to subscribe for new Ordinary Shares on the same terms as the Financing Warrants.



Application will be made for the 64,285,714 Financing Shares to be admitted to trading on AIM which is expected to occur on or around 30 January 2023 (“Admission”). The Financing Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

Following Admission, the Company’s issued share capital will comprise 1,727,574,806 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.


This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

#TEK TekCapital Plc investee co. #BELL Belluscura Plc – Year-end Trading Update

LONDON, U.K. AND PLANO, TX, U.S. (13 January 2023) Belluscura plc (AIM: BELL), a leading medical device developer focused on lightweight and portable oxygen concentrator (“POC”) technology, provides a trading update for the year ended 31 December 2022.

The Group is pleased to announce that it has made considerable progress this year. Since the launch of the 1st generation X-PLOR in September 2021, the Group is now distributing throughout the US through multiple sales channels: Distributors and Durable Medical Equipment Providers both Online and Bricks and Mortar, Medical Supply Warehouses, Medical Device Intermediaries, Hospitals and Direct to Consumer.

In addition, the collaboration agreement with the VGM Group has already resulted in 17 new distribution agreements in the last 3 months, including the agreement with a leading durable medical equipment provider and distributor in the US, announced in September 2022, which serves nearly 2 million patients both online and through over 1,000 locations.

In December 2022 we also signed our first international distribution agreement, with MedHealth Supplies of South Africa, which sells to one of the world’s leading respiratory device suppliers. We have already received orders for over 1,000 units, with their first shipment sold out within 48 hours.

In December we produced a record 536 units in our in-house facility and with Innomax coming on-line in Q1 this will more than double production of X-PLOR. Of important note, even with the rapid increase in volume, the production quality of our in-house facility has been outstanding, with no units returned due to defects.

By 31 December 2022 the Company had shipped or received orders for 2,850 X-PLOR units with 1,226 units being shipped in 2022 (2021: 377). As at the year end, the Adjusted EBITDA1 loss is anticipated to be in line with market expectations and retained cash balances of $1.8 million, which together with inventory and inventory deposits, amounted to $11.9 million. 

The next generation X-PLOR, launched in September 2022, has been well received by the market based upon its performance and reliability. It provides more oxygen by weight than any portable oxygen concentrator in its class and is the first POC with a mobile app that connects to phones, tablets, pulse oximeters and wearables (the NOMAD Biometric App).

The first DISCOV-RTM POCs expect to be launched for pre-market evaluation in Q1 2023, with full commercialisation anticipated in Q2.  DISCOV-R is the first ambulatory pulse-dose and two-litre continuous flow POC in the world. Weighing c.40% less than any comparable dual flow oxygen concentrator on the market, the DISCOV-R produces nearly 3 times the oxygen by weight than its competition.  Distributors are very excited about DISCOV-R and it is already receiving pre-orders. The DISCOV-R will also include the transformational NOMAD Biometric App.

In March 2022, we signed a manufacturing Master Supply Agreement (“MSA”) with InnoMax Medical Technology, Ltd (“InnoMax”) to manufacture the X-PLOR portable POC in China, more than doubling our manufacturing capacity in 2023 and enabling us to accelerate our international expansion by opening up markets in Asia and beyond.  Innomax are anticipated to directly source most of their own components from the second half of 2023, which will also result in a significant margin improvement and reduction in the Company’s inventory levels.

Given the strong demand, the Group took the decision to transfer its US manufacturing in-house, to increase production output at high quality standards, and achieve a significant reduction in production costs. This was successfully completed at the end of July 2022, enabling the achievement of ISO:13485 accreditation.  The manufacturing facility is already demonstrating the required product quality to build a significant customer base and repeat orders, underpinning the building of a strong brand reputation for our best-in-class technology.

Following this transition and having achieved ISO13485 accreditation, we are confident in having both the quality of manufacturing facilities and the inventory levels to increase production commensurate with market demand, as we expand our sales channels and are able to apply to distribute products internationally.

Robert Rauker, CEO of Belluscura plc, commented: During the year we have made considerable progress. We have enhanced our production, quality accreditation and supply chain, positioning us well to deliver on the demand we are seeing for our devices, as we expand our distribution partners and geographical reach. Market reception for the next generation X-PLOR and Nomad App has been extremely positive, with an encouraging level of forward orders. We are very excited about the upcoming launch of the DISCOV-R, which we believe will be a transformational product, and we look to the future with confidence.”

Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share-based payment expense, foreign exchange movements and non-recurring items. 

For further information please contact:

Belluscura plc


Robert Rauker, Chief Executive Officer

via MHP

Anthony Dyer, Chief Financial Officer

SPARK Advisory Partners Limited (NOMAD)

Tel: +44 (0)20 3368 3550

Neil Baldwin

Dowgate Capital Limited (Broker)

Tel: +44 (0)20 3903 7715

James Serjeant / Nicholas Chambers

MHP (Financial PR and Investor Relations)

Tel: +44 (0)20 3128 8100

Katie Hunt / Pete Lambie / Matthew Taylor

Email: belluscura@mhpgroup.com


About Belluscura plc (www.belluscura.com)

Belluscura is a UK medical device company focused on developing oxygen enrichment technology spanning broad industries and therapies. Our innovative oxygen technologies are designed with a global purpose: to create improved health and economic outcomes for the patients, healthcare providers and insurance organisations.

#SVML Sovereign Metals Ltd – Issue of Unlisted Performance Rights

Sovereign Metals Limited (Sovereign or the Company) (ASX:SVM, AIM:SVML) advises that it has issued 1,560,000 Performance Rights to key employees and consultants as follows:

·      740,000 performance rights subject to the “Pre-Feasibility Study Milestone” expiring on 30 September 2023; and

·      820,000 performance rights subject to the “Feasibility Study Mine Milestone” expiring on 31 October 2025.

Following the issue of these Performance Rights, Sovereign has the following securities on issue:

·      470,875,023 ordinary fully paid shares;

·      11,105,125 unlisted options exercisable at A$0.80 each on or before 13 May 2023;

·      6,100,000 unlisted performance rights subject to the “Pre-Feasibility Study Milestone” expiring on 30 September 2023; and

·      8,260,000 unlisted performance rights subject to the “Feasibility Study Milestone” expiring on 31 October 2025.


Dylan Browne
Company Secretary

+61(8) 9322 6322

#POW Power Metal Resources PLC – FDR Australia – Wallal Drill Clearance & Update

Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, provides an update to shareholders in respect of its interests in the Paterson Province of Western Australia (the “Paterson Interests”) held through its 62.12% subsidiary First Development Resources PLC (“FDR”) which is seeking a planned listing on the London capital markets.

This update relates specifically to the Wallal Project (“Wallal” or the “Project”), one of three Paterson Province projects held by FDR and includes the Wallal Tenements (E45/5816, E45/5853 and E45/5880) (the “Tenements”).


·    The Heritage Clearance Survey at Wallal, completed under the supervision of the Yamatji Marlpa Aboriginal Corporation and the Nyangumarta people in September 2022 has confirmed site establishment works for drilling may now proceed.

·    FDR have immediately mobilised an operational team to site to the  eastern magnetic bullseye anomaly identified during the in-depth desktop review (the “Eastern Anomaly) to establish access and to prepare the drilling pad, enabling the commencement of diamond drilling which is expected to follow immediately after the listing of FDR in the London capital markets.

·    The Phase I diamond core drilling programme has been designed to initially test the Eastern Anomaly, which is interpreted to consist of two lobes which result in a distinct target area of approximately 2.5km x 2.5km, targeting a large-scale gold-copper discovery.

Tristan Pottas Chief Executive Officer of First Development Resources plc commented:

“The completion of the Heritage Clearance Survey provides FDR with the final approval required to proceed with the Phase I diamond core drilling programme at FDR’s flagship Wallal Project in the Paterson province.

I would personally like to thank all the key stakeholders and consultants who have helped us get to this decisive point in the evolution of FDR, particularly the Nyangumarta people and Yamatji Marlpa Aboriginal Corporation.

On receipt of the final report, we have immediately engaged the services of an earthworks contractor to prepare the site to enable our drilling partner DDH1 to commence drilling at the earliest convenience following our planned UK listing.”

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:

Without question this is an exciting time for the Power Metal and FDR teams as we close in on listing, an event which will be followed with drilling at Wallal targeting a large-scale gold-copper discovery. 

From day one to date, FDR have demonstrated their intention to deploy capital immediately into the ground to improve the understanding of the various targets across their project portfolio. This is a mindset that I expect to continue after the planned UK listing.”


FIGURE 1: Paterson Province Tenement Map


FIGURE 2: Wallal Geophysical Anomaly Map

Diagram, map Description automatically generated

FIGURE 3: 3D View to the North of the Eastern Anomaly

The diagrams and images presented above may be viewed on FDR’s website and may be reached through the following link:


Further photographs and videos are and will be available on FDR’s website gallery section, through the following link:



The Heritage Clearance Survey (the “Survey”) was completed at Wallal between 12-15 September 2022. The original Survey request which included a detailed description of the Phase I diamond core drilling programme and site-specific maps was submitted to Yamatji Marlpa Aboriginal Corporation (“YMAC”) by the Company’s appointed Exploration Manager on 31 January 2022. The Survey is a required precursor to the planned Phase I diamond core drilling programme at the company’s Wallal project located in the Paterson Province of Western Australia.

The Survey was completed in accordance with Section 18 of the Aboriginal Heritage Act 1972 and in accordance with the terms of the Heritage Agreement in place with YMAC as agent for the Nyangumarta Warrarn Aboriginal Corporation. The Survey was undertaken with the full involvement of Nyangumarta representatives. As native title holders the Nyangumarta possess rights and interests according to traditional law and custom including the right to be fully informed about activities on their country and to speak about their country.

The Survey team, appointed by YMAC, included representatives from Nyangumarta, a YMAC archaeologist, a consulting anthropologist, and members of FDR senior management team. Two 400m x 400m areas were surveyed covering the two planned drill locations designed to initially test the Eastern anomaly (“Area A”) and the secondary target, the Border anomaly (“Area B”). In addition to the drill sites, the Survey also covered the route of new tracks necessary to access the drill locations.  At both drill locations additional east-west orientated survey grids (measuring 2.73km x 4km at Area A and 1.27km x 4km at Area B) were delineated to facilitate potential future on-ground geophysical surveys.

Following the Survey, the Nyangumarta representatives asserted that the work programme proposed at Area A and Area B, was clear of ethnographic and archaeological sites or concerns and that the proposed works programme could proceed.


Following receipt of the Heritage Clearance Survey Report a team led by the FDR’s Exploration Manager has been mobilised to Wallal to prepare the site in preparation for drilling which is scheduled to commence immediately following FDR’s proposed UK listing.  


To enable site works to proceed efficiently, the existing access track which links the drilling sites to the well-maintained Nyangumarta Highway, will require minor earthwork improvements and the drill pads and camp accommodation areas will be levelled and prepared ahead of drill contractor mobilisation


Both the access and the drill pad location were surveyed during the recent Heritage Clearance Survey. Site clearance is expected to take approximately three days to complete.


FDR’s Phase I diamond core drilling programme has been designed in conjunction with Perth based consultancy Resource Potentials Pty Ltd (“Resource Potentials”). The programme is targeting the Proterozoic basement rocks below the Permian Grant Group which are believed to host the sources of the magnetic bullseye anomalies identified during the completion of an in-depth review of all geological and geophysical data associated with the Wallal project area.

Three magnetic bullseye anomalies were identified in the review, the Western, Eastern and Border anomalies. The magnetic bullseye anomalies are of particular interest due to their possible geological similarities to the regionally significant Havieron discovery (Greatland Gold – Newcrest Joint venture).

The Havieron deposit is coincident with a magnetic bullseye anomaly detected by an airborne magnetic survey and has a similar amplitude to Wallal, approximately 100nanoTesla (“nT”) for the Eastern Anomaly and 80nT for Havieron.

The Phase I diamond core drilling programme has been designed to initially test the Eastern Anomaly. The Eastern Anomaly is interpreted to consist of two lobes which result in a distinct target area of approximately 2.5km x 2.5km. An estimate of depth of the cover sequence has been used to constrain the modelled depth of approximately 800 metres to the top of the Eastern magnetic source body.

The Phase I diamond core drilling programme will consist of a minimum of two sub-vertical boreholes totalling approximately 2,720 metres, which will be drilled using rotary open hole to about 150 metres downhole depth and then full core drilling techniques there onwards.

Depending on ground conditions encountered, it is expected that the holes will be commenced using reverse circulation drilling techniques, followed by 83mm (PQ3) or 61.1mm (HQ3) diameter core with a 50.5mm (NQ2) tail to total depth. The parameters for the planned boreholes are set out in Table 1:

Table 1: Planned Wallal Phase I diamond core drillhole parameters





DIP (°)
















The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Qualified Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

#TEK Tek Capital plc – Investee Company #BELL Belluscura plc

Belluscura, a leading medical device developer focused on lightweight and portable oxygen enrichment technology, is delighted to announce that it has won two 2022 HME Business New Product Awards for its X-PLOR® portable oxygen concentrator and Nomad Biometric™ App.


X-PLOR® is a lightweight portable oxygen concentrator (“POC”) with user replaceable oxygen enrichment cartridges and direct-charge batteries. Weighing only 3.75 lbs, its AirgonomicTM Design ensures user-friendly experience and maximum comfort and mobility. It has multiple Pulse Flow Settings including its novel X-PLORATIONTM Mode.


The next generation X-PLOR® also includes the new Nomad Biometric™ App, where patients can connect other Bluetooth® devices such as their iPhone® or Android phone, Nonin® or Masimo® pulse oximeters, and Fitbit® wearables to track healthcare data which can be shared with healthcare providers.


The New Product Award is run by HME Business, part of the HME Media Group, honouring outstanding product development achievements by HME manufacturers and service providers. The competition is judged by a panel of HME providers from a variety of backgrounds and category specialties.


Both products, along with Belluscura’s next generation POC, the DISCOV-R™, will be on display at Medtrade in Atlanta, Georgia between October 24-26. Medtrade is the largest home medical equipment trade show and conference in the US.


The DISCOV-R™, weighing just 6.5lbs when it is launched in Q1 2023, will be the world’s first ambulatory dual flow POC. Comparable competitive devices weigh nearly twice as much and lack Belluscura’s novel NOMAD Biometric App and patented technology.


Robert Rauker, CEO of Belluscura plc, commented:


We are delighted that Belluscura has been awarded two 2022 HME Business New Product Awards for the X-PLOR® portable oxygen concentrator and the Nomad Biometric™ App. The awards recognize the outstanding product innovation behind the X-PLOR®, the Nomad Biometric™ App, and the DISCOV-R™. We look forward to introducing our latest portable oxygen concentrator to the market, DISCOV-R, which, like all our products, was designed with our patients in mind and getting them back to doing the things that they love.”





For further information, please contact:


Belluscura plc


Robert Rauker, Chief Executive Officer

via MHP

Anthony Dyer, Chief Financial Officer

SPARK Advisory Partners Limited (NOMAD)

Tel: +44 (0)20 3368 3550

Neil Baldwin

Dowgate Capital Limited (Broker)

Tel: +44 (0)20 3903 7715

James Serjeant / Nicholas Chambers

MHP Communications (Financial PR and Investor Relations)

Tel: +44 (0)20 3128 8100

Katie Hunt / Pete Lambie / Matthew Taylor

Email: belluscura@mhpc.com



About Belluscura plc ( www.belluscura.com )

Belluscura is a UK medical device company focused on developing high performing, lightweight and portable oxygen enrichment technology used in a broad range of industries and therapies. Our innovative oxygen technologies are designed with a global purpose: to create improved health, mobility and economic outcomes for patients, healthcare providers and insurance organisations.


About Reach announcements

Reach is an investor communication service aimed at assisting listed and unlisted (including AIM quoted) companies to distribute media only / non-regulatory news releases such as marketing messages, corporate and product information into the public domain. An RNS Regulatory announcement is required to be notified under the AIM Rules for Companies.


October 2022 Investment Review – Alan Green talks to Ken Baksh

Former fund manager and market analyst Ken Baksh has over 30 years experience in the markets, and is widely respected for his insightful analysis and investing ideas. In the first of a series of monthly interviews with Alan Green, Ken offers his view on global economies before moving closer to home and asking whether the Karteng budget and Truss Government farce has damaged our international reputation as a financial powerhouse. Ken then provides an in depth look at the UK economy and what he sees as the difference between UK equities and the UK economy. Ken then provides his four stock picks for October, which include Legal & General #LGEN, Smith & Nephew #SN., Greencoat Wind #UKW and Begbies Traynor #BEG, and then provides potential action points for the cautious investor and options for income investors.

OCTOBER 2022 Market Report

Investment Review


During the one-month period to 30th September 2022, major equity markets, as measured by the
aggregate FTSE All – World Index, fell sharply 9.6%, taking the year-to-date loss to 26%, in $ terms.
All major equity declined with the UK, Europe and Japan marginally outperforming while China and
Emerging Markets fell over 12% during the month. The VIX index rose sharply, finishing the period at
a level of 31.62. Key equity market drivers were continued concerns over global economic growth, inflation, food crises, rising interest rates and political uncertainty. Government Fixed Interest stocks also fell over the month largely on inflationary, supply and specific UK related issues. The UK 10-year gilt ended the month on a yield of 4.13% (2.8% one month ago) with corresponding yields of 3.73%, 2.11% and 0.25% in USA, Germany, and Japan respectively. Speculative and lower quality bonds also mostly fell in price terms. Currency moves featured a weaker pound and stronger US dollar. Commodities mostly fell in price terms on revised economic
growth forecasts.


Over the recent month, there have been further significant official economic growth downgrades (graphs above) and growing anecdotal corporate evidence of difficult trading conditions. Central Banks have become more hawkish in battling stubbornly high inflation announcing interest rate hikes both sooner and higher than expectations in many cases.UK macro news was dominated by a ” mini budget”which was anything but…
All organizations highlight the considerable regional variation, the IMF for example talking of “severe recession” in parts of Eastern Europe and Italy on various natural gas scenarios, while the World Bank has speculated on the” possibility” of a global recession in 2023.The World Bank explores the possibilities of three world growth, per person, outcomes between +1.5% to -0.4% crucially dependant on the extent of Central Bank tightening, to tackle inflation.

Recent US Federal Reserve meetings and informal comments by Jerome Powell and other Fed governors have clearly become much more hawkish and several interest rate increases are expected over coming months. At the September 21st meeting the Fed raised the benchmark rate by 75 bp, for the third time in a row and signalled its intention to keep policy tight. Downward projections to economic growth, and upward moves to inflation forecasts were also released. Recently announced inflation indicators showed August headline CPI of 8.35%, higher than estimates, while the core inflation rate rose by 6.3% led by services. First quarter negative GDP growth followed by second quarter of -0.9% signals a “technical recession”, although labour / employment trends still seem robust. Recent consumer sentiment indicators, retail sales, housing activity, construction figures and the Empire States Survey, however, show declining trends into August/September. Independent economic forecasts are now expecting very low GDP growth for full year 2022 with the unemployment level rising to about 4.4%. The Fed’s own forecasts expect GDP growth of 0.2% and 1.2%, and core PCE growth of 4.5% and 3.1% respectively for 2022 and 2023

The European Central Bank raised interest rates by half a percentage point on July 22nd, and a further 75bp in September also pledging to support surging borrowing costs from sparking a eurozone debt crisis. Co-ordinated moves to help mitigate the gas crisis, including windfall taxes and energy pricing reforms are also being urgently discussed. First quarter 2022 GDP for the Eurozone showed a weaker than expected trend especially in Sweden, Italy and Germany and more recent indicators show a continuation of this trend into August and September, exacerbated by the Russia/Ukraine conflict, supply chain issues, and rapidly increasing costs. A technical recession seems inevitable.

Current ECB staff projections foresee economic growth of 2.8% for 2022, a sharp reduction on the previous forecast, and further downgrades could be likely in the wake of the ongoing Ukrainian conflict and related gas shortages. September Eurozone inflation, just released, of 10.0% (Holland15%) was higher than expected. Political events have included the election in Italy of Giorgia Meloni to the position of prime minister and head of a three-party right-wing alliance.

Unlike other major economic zones there have been no major economic downgrades within this region, (maybe a lagged effect) but there are a wide range of possible outcomes depending on commodity exposure, tourism, debt, Chinese linkages, US dollar effects, etc. Recent FT analysis shows that in four of the six biggest countries in ASEAN (Vietnam, Malaysia, Indonesia and Philippines), GDP is rising faster than inflation (see graph below) in contrast to the majority of the G10 countries. A sharp bounce back from the pandemic (Philippines), commodity exposure (Indonesian palm oil and coal), (Malaysian palm oil and rubber), and Thai (rubber) and shifting supply chains away from China (Apple iPads from Vietnam) are all factors behind the region’s resilience. The World Bank estimates that the Pacific ex China are could grow at 5.3% in 2022,higher than China.

Chinese economic data over past months has cast strong doubts on the 5.5% official growth target for 2022, with some investment banks now forecasting below 3%. Official data covering the period
to end August showed weakening trends in consumer spending, fixed asset investment and construction activity while more recent “live” tracking data e.g., mobility, cement production and electricity use also showed subdued economic activity. Of note were the precipitous drops in real estate and related construction activity, where, at the time of writing, government and quasi government rescue packages are being put urgently into place The zero tolerance Covid policy has of course also had depressing effects on several economic sectors (see below). Various government
“economic support” measures have recently been introduced to soften these headwinds and the

2022 National Congress this autumn, starting on October16th, will be closely monitored for economic and political pointers. Further reinforcement of “common prosperity” and “anti corruption“ themes could lead to unpredictable government interference at short notice. “China’s most locked-down city exemplifies the perils of endless Covid Zero. Ruili’s residents saw seven lockdowns from March 2021 to April 2022 and have spent a total 119 days barred from leaving their homes for any reason—other than to test for Covid. Even today when they go out, all movements are tracked, partly by facial recognition cameras. And a once-porous border is now patrolled by thousands of guards, equipped with heat-seeking technology” -source Bloomberg

After fourth quarter GDP 2021 growth of 5.4% annualised, led by more buoyant consumer spending and a tentative manufacturing recovery, the first quarter 2022 figure showed a decline of 1.0% annualised, somewhat higher than some estimates, then followed by 2.2% in Q2 2022, largely consumer driven. Estimates for the full year seem to fall mainly within the 1.5%-2.0% band. Inflation, while still well below international peers, rose by 3.0%(core 2.8%) in August, led by fuel and food and the weakening Yen. Fiscal policy remains loose, and the BOJ recently reaffirmed its yield control policy, while keeping key interest rates at -0.1%. However recent verbal and actual intervention (see below-one day trading) suggest that Yen weakness (on relative interest and divergent policy grounds), is no longer a one-way bet!

Within the UK, live activity data (e.g September Gfk data) shows a weaker overall trend, especially within the services sector. According to this survey, released late September, consumer confidence dropped to another new level (–49) amid the cost-of-living crisis. To put this into perspective, the low point during the height of the pandemic was -34!..people really are gloomy. Other data has also been uninspiring with flat GDP and industrial production to end July and poor August retail sales.Second quarter official GDP,just released ,show a gain of 0.2% rather than a previously announced decline of 0.1%. RICS and Nationwide have reported a definite slowing in housing activity and there are doubts that the tax cuts/ stamp duty/first time buyer, changes announced in the “so called”! mini budget will offset the inevitable mortgage effect going forward. Unemployment, however, is still at a very low level, although recent official figures did show a tentative slowing in hiring intentions and there could be other adjustments due to some working age people leaving the
work force permanently (health?).

Inflation continues to rise, the August CPI and core readings registering hikes of 9.9% and 6.3% respectively led by fuel and food prices. The British Retail Consortium reported on September 27th that prices hit a record high in September, rising 5.7% on the month, with food bills up 10.6%. The recently announced energy support package will at least take the heat out of some of the more extreme inflation forecasts as well as provide some financial relief. The PSBR was starting to deteriorate again, largely as a results of rapidly rising interest (index linked) payments and expectations of higher public sector pay and state pensions. Projections following the
September 23rd mini budget and energy support packages have ballooned, the Institute for Fiscal Studies for example expecting public borrowing to top £190 billion this financial year taking the Debt/GDP forecast near 100%. Official gilt sales were scheduled to start this month, although the BOE statement on 28th September, regarding “providing stability” actually calls for a short period of gilt buying!

The current account deficit for Q1 was the worst on record at 8.3% of GDP, another worrying sign. It will be interesting to see if sterling weakness since then has changed the aggregate figures. Despite some relief with the recent energy price package (but not other utilities) and budget related tax/NI cuts, shop price inflation, merchandise availability, upward interest/mortgage rate pressure, stalling house prices, accelerating rents, insolvencies/evictions, pension triple-lock suspension (22/23), legacy Brexit issues, strike activity, covid revival will continue to be headwinds and the outlook for economic growth over coming quarters is highly uncertain.

Experts at consultancy EY-Parthenon reported that company profit warnings had jumped over 65% during the first half of 2022 citing increasing costs and overheads as the main reason. The same consultancy also issued a worse case inflation forecast of 15%, even higher than that of Bank of England governor Bailey. Another report from Begbies Traynor quoted that 600,000 business were already in financial distress. Anecdotal evidence from reporting quoted companies at the interim stage show a very mixed trend, and in my view, the just announced mini-Budget will create another batch of winners/losers.

Monetary policy has tightened from a 0.1% interest rate in December last year to the 1.25% rate set in June and a further 50bp at the August, meeting, followed by 50bp in September, taking the benchmark rate to 2.25%. Markets were expecting rates to be above 3.5% by mid-2023, but following the mini-Budget, the feeling is that the Bank of England will need to be more aggressive and figures of 5.0% for both shorter term rates and the 10-year Government bond yield are not totally unrealistic.

Monthly Review of Markets

Global Equities fell sharply over September, extending the year-to-date decline to 26% in dollar terms, with large variation between countries and sectors. The major UK equity indices and Japan, while still declining, outperformed in relative terms while China and Emerging Markets registered price falls in excess of 10%. The VIX index jumped over the month to an end September at a level of 30.32. The nine- month gain of 75% reflects the degree of risk aversion compared with the” relative calm” of last December (medical, geo-political and economic!).

UK Sectors
Sector moves were very mixed over the month although virtually all ended in negative territory. Mining, oil and pharmaceuticals proved to be relatively defensive while real estate,telco’s, household goods and food fell sharply. The FTSE100 continued to outperform FT ALL-Share on the month and is outperforming on a year-to-date basis, by around 4% largely due to the international/resource bias of the former and the low expectations for the UK domestic economy. By IA sectors, UK active unit trusts are underperforming benchmark indices, trackers etc, so far this year, with small company funds even more so. Income based funds, by contrast, are outperforming the averages. “Balanced” funds, by IA definitions, are falling by about 12% so far this year (Source: Trustnet September 30th). Due to the unprecedented fall in gilt and related prices, defensive funds
are falling as fast as growth funds so far this year

Fixed Interest
Major global government bonds collapsed, in price terms over September, the UK 10-year yield for instance finishing the month at a yield of 4.13%. Other ten-year government bond prices showed closing month ten-year yields of 3.73%, 2.11% and 0.25%for US, German and Japanese debt respectively. The very sharp move in longer gilts, prompted by the “surprise” Budget caused some immediate stresses amongst pension funds, which was the major reason for the BoE to initiate some “emergency measures” and defer the scheduled gilt sales. Year to date, the composite gilt index has fallen approximately 26% marginally underperforming UK
higher quality corporate bonds. Check my recommendations in preference shares, selected corporate bonds,fixed interest ETF’s, zero-coupons, speculative high yield etc. A list of my top ideas from over 10 different asset classes
is also available to subscribers.

Foreign Exchange
Currency moves featured weakness in sterling and strength in the dollar, the actual cross rate between the two moving by over 4%. Currency developments during September also included verbal and actual intervention by the Japanese and Chinese authorities as well as the well-publicised UK FX volatility which at one stage saw the pound heading for parity to the dollar. The strength of the dollar largely on the increasingly hawkish US Federal Reserve is creating many distortions in developed and emerging markets alike.

With the exceptions of corn, palladium and wheat, commodities were weak across the board. Year to date, some soft commodities, uranium and the energy complex are still showing good gains, but industrial metals such as copper, iron ore and aluminium are nursing losses of 23%,24% and 25% respectively.

Looking Forward
Longer term investment concerns regarding variable economic recoveries and inflation, with related interest rate/fiscal implications have superseded Covid worries, even though the latter is “far from over” in a global perspective. Further rounds of autumn vaccination are already underway in several Northern Hemisphere locations. Shorter term, Ukraine issues are adding to equity, bond, currency and significantly, commodity, variability while UK assets, following the election and recent mini Budget seem likely to remain volatile for several weeks (currency, bond and equities).

Major central banks have turned much more hawkish with reducing QE and accelerating the timing and extents of rate increases, especially where inflation control is the sole mandate. In a growing number of smaller economies where US contagion, politics, commodity exposure inflation/fx are also issues, several official increase rate increases have already taken effect. Japan, however, has continued to adopt stimulative measures, up to now. Global Government Bonds have started to weaken again in price terms, with longer maturity debt now falling significantly as well as shorter term paper. Absolute yield levels, however, still look low when inflation, government supply and quantitative tightening are considered, especially regarding the UK, where new government policies, seem likely to fuel inflation, increase government borrowing, weaken the currency and possibly lead to greater than expected interest rate hikes. For equities, the two medium term key questions will be when rising interest rates eventually cause equity derating/fund flow switches, government, corporate and household problems, and how the rate of corporate earnings growth develops after the initial snapback. Going forward, withdrawal of certain pandemic supports, uncertain consumer and corporate behaviour and cost pressures are likely to lead to great variations by sector and individual company.

As well as maintaining an overweight position in UK equities, it may be worth initiating or adding to Japanese positions within an international portfolio. The US market has fallen about 24% so far this year (NASDAQ -31%) but remains a relative underweight in my view. Margin pressure headwinds, political uncertainty and technology sector volatility must be balanced against the current stock market ratings. Continental European equities appear cheaply rated in aggregate, but great selectivity is required. Current Ukraine tensions have opened new opportunities within the emerging market space, but extreme caution warranted. Latin America and parts of Asia, for example, have enjoyed economic rebounds, revived tourism, some commodity exposure, and little negative Ukraine spill over and this has been reflected in some indices e.g Latin America.

Another major asset allocation decision would be to replace part of the conventional “fixed interest” portion with alternative income plays in the infrastructure, renewables, and specialist property areas. Many instruments in this area provide superior capital growth, income, and lower volatility than gilts for example. I am also adding selected preference shares to the “fixed interest” allocation, where annual yields of approximately 6% are currently available after the recent bounce in prices.

At this time of writing, with so many political, economic unknowns (and rapidly moving developments), there will be a high degree of error in any forward looking economic/investment strategy/sector/stock projections, but I would heroically attempt to present the current picture as I see it.

• The historic “hard data” is poor up to the end of September, and remember that these are the “facts”that the OBR will use in their base case not to be overly distracted by current political noise and spin.
• Several headwinds I outlined on page 7, are still very appropriate, (though forgotten by several commentators), and importantly, predate issues of energy prices….and then interest rates/mortgage payments.
• Short and long term interest rates were abnormally low until recent months…still a global QE effect, plus slow Central Bank reactions to inflation
• Biting my tongue to avoid any political comment, the first attempt (I will call it that) at the budget of the new government proposed tax cuts, with very little information on revenue raising…. immediate cue for UK asset volatility.
• Understandably, international observers (important gilt holders and the IMF) want to know more, as does the OBR, who seem to have been side-lined (or worse).Kwarteng will have to convince a sceptical OBR that his 2.5% medium term growth plan can be achieved through supply side reforms, while still remaining fiscally responsible. Remember that the OBR was predicting only 2.0% sustainable growth in March when the economy was much stronger.
• The Bank of England, with its main remit of price stability, would be inclined to put-up short-term interest rates even higher than originally planned. One of the IMF objections to the proposed fiscal package was the likely conflict with the Bank of England.
• My best guess now is that there may be some behind the scenes conversations between OBR and government, possibly some back tracking or even personnel moves and further detail on Govt spending/saving before the rather too distant date of November 23rd
• BoE will temporarily put gilt selling on hold, but expect volatility, both during after the stated time period (14th October).

The recent (September 23rd) budget and subsequent chain of events has reinforced my long standing view that equities should currently be favoured over gilts, despite the large outperformance already this year with a loss of just 6.7% for the FTSE 100 versus a 26% decline for the All Gilt Index. Both figures exclude income, which would in fact show UK equities in an even better light. Holders of “balanced funds” should assess whether their current asset mix is appropriate. However, it feels rather late to open new short positions in Fixed Interest and some more conservative/income oriented may start looking more closely at certain fixed interest products, that have fallen to sustainably attractive yield bases

Equities continue to remain a relative overweight in my view, based on several conventional investment metrics (see above), longer term underperformance since the Brexit vote, style preference (value overgrowth) and international resource exposure although be aware of the numerous domestic headwinds I have highlighted above. Value should be favoured over growth, and the FTSE 100 favoured over the FT All-Share. Apart from the style drift, remember that the non sterling element of leading FTSE 100 companies and sectors is relatively high By sector, Oil and Mining equities continue to benefit from above average yields, strong balance sheets, dollar exposure and secular demand e.g copper, cobalt for electronics, construction, electric vehicles etc

Remain overweight in pharmaceuticals and underweight in non-renewable utility stocks which may suffer from consumer and government pressures, and no longer trade on yield premia, especially against the back drop of rapidly rising gilt yields. Construction materials, especially cement will benefit from growing infrastructure/renewable initiatives.
Banks, may enjoy some relative strength from rising interest rates, but continue to monitor the recession/loan growth and default risks. Preference Shares as well as ordinary shares have attractions in this area

Housebuilders and real estate-expect depressed activity and remember that the rising interest rates have not yet been fully factored into bricks and mortar property yields. Some property company corporate bonds however have shown some immediate weakness.
Weak sterling and changes re Duty Free rules should positively affect certain tourism/luxury good companies.
Domestic Breweries/pubs etc are having a hard time with stalling consumer’s expenditure,supermarket competition and rapidly rising costs. Airlines may suffer as a result of large dollar costs, uncertain foreign travel outlook and often high debt levels

Extra due diligence at stock level more generally will be required as I expect a growing number of profit warnings and downbeat forward looking statements. Takeover activity is also clearly increasing with, for example, private equity snapping up UK-listed companies at the fastest pace for more than twenty years. Foreign takeover, stake building is also increasing, current weak sterling being a factor, with Vodafone under scrutiny by a French (who already have BT interest!) investor.Biffa(waste management),MicroFocus(technology),Aveva(software) and RPS(professional services) have all succumbed to foreign takeovers in recent months, much by “strong dollar” American or Canadian organizations.


It is difficult to see value in conventional gilts now against the current inflation and debt/GDP ratios, and the supply expected over coming months. At some stage however, institutional asset/liability considerations, and equity to bond switching may reappear. Ten-year gilt yields of 4.13% do appear more attractive now against
a current FTSE 100 yield of 3.9% than the 0.97% gilt yield at the beginning of the year.


also remain an overweight in my view, although my recent comment re hedging may “nuanced “now following the extreme currency weakness and surprise intervention. Unlike most other major economies, Japan is expected to continue its easy money policy. Exporters have benefitted from the plunging Yen although higher
input costs and more “off-shoring” also must be considered. The price/book ratio of 1.20 is attracting interest of corporate and private equity buyers, while the prospective yield of 2.8% is above the world average and compares very favourably with USA (1.8%). Corporate governance is rapidly improving with diverse boards, reduction of cross holding, higher dividends etc. Private equity stake building interest in Toshiba and growing activity in the property sector (discount on a discount in a cheap currency) demonstrate the search for value in Japan.

On a valuation basis (see table above) the forward PE multiple of 12.1 is at a considerable discount to the world, and especially US average

EMERGING MARKETS– Very difficult to adopt a “blanket” approach to the region even in “normal times”, but especially difficult now, with so many different COVID, commodity, sectoral mix, debt, geo-political and increasingly natural disaster variables. Interestingly the rush into Emerging Market assets, both bonds and equities, at the start of 2021 moderated through the year and into 2022 as many dramas have unfolded e. g South Africa, Turkey, Ukraine, Chinese regulation. This latter factor has special relevance to those using Emerging Market Benchmark Indices. The IMF recently warned that several emerging nations could disproportionately suffer from a combination of COVID and adverse reaction to “tapering” by developed counties e.g., FX/Interest rate pressures. Six countries have already defaulted during the pandemic, and the IMF is currently in various stages of bail-out discussions with Pakistan,Argentina,Zambia,Sri Lanka,Ghana,Tunisia and Egypt. However, within the emerging space, I continue to have a relatively favourable longer term view on Asia, where relative COVID success, stable FX,inward investment, lower relative inflation and export mix help investor sentiment

Vietnam, for example, is supported by positive demographics, with a population of near 100 million, an emerging middle class, and a recipient of strong foreign direct investment. Qualconn,an Apple supplier, Intel(semi-conductors),Lego and Samsung(mobile phone plant) have all recently invested in new capacity in the
country. Other big names moving chunks of production from China to Vietnam include Dell and HP(laptops),Google(phones)and Microsoft (Games Consoles) The economy is expected to grow at around 6.5% this year (7.7% Q2 2022) and current inflation is running at about 3.5%. On a relatively low prospective PE based on forecast earnings growth over 20%, Vietnamese equities appear good value. India, although quite highly
rated and a major oil importer, warrants inclusion in a diversified portfolio, and is
currently receiving some fund flows from “overweight” Chinese portfolios.
Indonesia,the last of my current Asian ideas benefits from a commodity boom, strong
domestic market, low debt, relatively stable currency, forecast 5% GDP growth and 5%

Caution is required in many South American markets with poor COVID-19 situations,
deteriorating fiscal balances and inefficient governments, many of which are up for
change. However, some stock market valuations currently appear interesting in the
region, which, so far, has been relatively unaffected by events in Ukraine. Commodity
exposure, deglobalization beneficiary, valuation and recovery from a very low-level
account for some year-to-date stock market relative out- performance.
Certain areas within Central Europe are starting to receive more attention, mainly on
valuation grounds, but the lingering Covid effects and indirect effects of the
Russia/Ukraine invasion should be borne into account. Regarding the latter, a
reduction/termination of Russian gas supply could have a serious recessionary impact
in certain countries. Large refugee influxes e.g Poland are also starting to create
budgetary/social issues.
Comments re great selectivity above also apply to emerging market debt. For the
more adventurous fixed interest investor combinations of well above average yields
(sometimes caused by pre-emptive moves last year), stable fiscal and FX situations
and, diversified economic models could provide outperformance from carefully
selected bonds.JP Morgan is sounding out big investors on adding India to its
emerging market bond index with an announcement due in October. This could have a
dramatic effect on inflows into Indian debt.

COMMODITIES- Gold spiked to over $2000 in March, a recent high, when Russia
invaded Ukraine, but has since fallen about 17%. Global gold ETF’s continue to
experience outflows) with other inflation “hedges” available, this zero yielding asset
seems likely to remain friendless. The longer-term prospects for more cyclical plays
continue to look brighter. Increased renewable initiatives, greater infrastructure
spending as well as general growth, especially from Asia, are likely to keep selected
commodities in demand at the same time as certain supply constraints (weather,
labour and equipment shortages, Covid, transport) are biting. Anecdotal evidence from
reporting companies RTZ, BHP and Anglo American appear to suggest that the industry
is enjoying a bumper time, and with disciplined capex programmes, extra dividends
and share buy-backs are commonplace! In the short term there could be additional
supply disruption in the areas of natural gas, palladium, nickel, aluminium, potash and
certain foodstuffs. It should be remembered that commodity investment is inherently

• Wheat and other grain prices have fallen from the levels reached following the Russian
invasion of Ukraine, but the current shipping “truce”, planting/harvesting schedules
within the region and extreme global meteorological conditions are expected to lead to
further price volatility. If the conflict is prolonged it will affect millions of people living
in such places as Egypt, Libya, Lebanon Tunisia, Morocco, Pakistan and Indonesia that
could have political consequences. There has been renewed interest in agricultural
funds as well as the soft commodities themselves.

GLOBAL CLIMATE CHANGE remains a longer-term theme, and will be built into
the many infrastructure initiatives, being pursued by Europe, USA, and Asia. The
Russia/Ukraine conflict is accelerating the debate, and hopefully the action. There are
several infrastructure/renewable investment vehicles which still appear attractive, in
my view, combining well above average yields and low market correlation with low
premium to asset value. The recent volatility in natural gas prices has highlighted both
risks and opportunities in the production and storage of energy from alternative
sources. However, increasing levels of due diligence are required, in committing new
money to the area overall. Financial watchdogs across the world are sharpening their
scrutiny of potential “greenwashing” in the investment industry on rising concerns that
capital is being deployed on misleading claims.
• However, in the shorter term, the Russian invasion of Ukraine has precipitated a global
energy crisis, that has forced countries, especially in Europe to look for ways to quickly
wean themselves off Russian oil and gas, and reconsider timelines of commitments to
cut the use of fossil fuels. At the time of writing, it seems highly likely that USA will
increase oil and gas output, UK North Sea may see further investment and EU coal
consumption could increase.
• Another area currently in the ESG purist cross hairs is “nuclear”. Ignoring the fact that
nuclear weapons have not been used in anger since 1945, and the fact that some
deterrent is needed, (now?), where should the confused investor stand when it comes
to nuclear power substituting coal power? Japan, UK and Germany are all studying
proposals to revive their nuclear power capacities. I have some interesting “uranium
play” ideas for those interested.

ALTERNATIVE ASSETS-this group, encompassing private equity, private debt,
hedge funds, real estate, infrastructure, and natural resources is expected to continue
growing both in actual and relative terms over coming years.
Traditional asset management groups are racing to expand offerings in alternative
investments as they seek to boost profitability and head off competition from private
equity groups (see graph below).
I have, for a while, recommended some exposure to this area maybe as part of the
former “gilt allocation”. With strong caveats re liquidity, transparency, dealing
process, I still adopt this stance, continuing to use the investment trust route. So far
this year, gilts have declined approximately 20% while my favoured UK renewable
closed-end funds have appreciated by around 15% in capital terms and delivered
about 6% in annual income. Please contact me directly for specific ideas

COMMERCIAL PROPERTY- The most recent MSC/IPD UK Property Index up to the
end of July 2022 showed a monthly total return of -0.6% across all properties, 9.0%
total return year to date, thus building on the 21.9% return experienced for full year
2021.This was the first monthly fall in capital values since October 2020.Capital values
of Industrial properties in both the Southeast and Rest of UK decreased 1.9% over the
month. Rents grew on average at an annualised rate of 3.7% p.a in July with Gains in
Industrial rents broadly offsetting rents in the Office and Retail sectors.
Several analysts are down grading their estimates for the sector following the rapid move
in UK longer and shorter-term interest rates. Property asset valuations take time to
materialise where there is a lag between balance sheet date and results publication in
the listed area. Live traded property corporate bonds, however, have already moved
sharply lower.
Full asset allocation and stock selection ideas if needed for ISA/dealing accounts, pensions.
Ideas for a ten stock FTSE portfolio. Stock/pooled fund lists for income, cautious or growth
portfolios are available. Hedging ideas, and a list of shorter-term low risk/ high risk ideas
can also be purchased.
I also undertake bespoke portfolio construction/restructuring and analysis of legacy
Independence from any product provider and transparent charging structure
Feel free to contact regarding any investment project.

Good luck with performance!
Ken Baksh Bsc,Fellow (UK Society of Investment Professionals)

To receive Ken’s views on daily market moves, macro and stock ideas, and of course launch offers for his upcoming subscription service please submit your details here:

1st October ,2022
Important Note: This article is not an investment recommendation and should
not be relied upon when making investment decisions – investors should conduct
their own comprehensive research. Please read the disclaimer.

Disclaimer: Opinions expressed herein by the author are not an investment
recommendation and are not meant to be relied upon in investment decisions.
The author is not acting in an investment, tax, legal or any other advisory
capacity. This is not an investment research report. The author’s opinions
expressed herein address only select aspects of potential investment in
securities of the companies mentioned and cannot be a substitute for
comprehensive investment analysis. Any analysis presented herein is illustrative
in nature, limited in scope, based on an incomplete set of information, and has
limitations to its accuracy. The author recommends that potential and existing
investors conduct thorough investment research of their own, including detailed
review of the companies’ regulatory filings, and consult a qualified investment
advisor. The information upon which this material is based was obtained from
sources believed to be reliable but has not been independently verified.
Therefore, the author cannot guarantee its accuracy. Any opinions or estimates
constitute the author’s best judgment as of the date of publication and are
subject to change without notice. The author may hold positions in any of the
securities mentioned
The author explicitly disclaims any liability that may arise from the use of this

#KAV Kavango Resources PLC – Ditau – IOCG system confirmed at i10

Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) (“Kavango”) is pleased to announce petrological confirmation of an Iron Oxide Copper Gold (“IOCG”) system at the Company’s Ditau Project in southwestern Botswana.

Kavango has received petrology results of core samples taken from Ditau, including exploration hole DITDD004, which the Company successfully drilled in May 2022. Kavango believes this is the first confirmation of IOCG-style mineralisation in Botswana and suggests there is considerable exploration upside at Ditau, both for higher grade IOCG discovery and for carbonatites that may contain rare earth elements (“REEs”).

Kavango has previously identified 12 ‘ring structure’ geophysical anomalies at Ditau, which remain the Company’s focus for exploration.


–    Petrological analysis confirms IOCG system at Target i10 in Hole DITDD004

–    15 samples from Ditau tested by an internationally recognised laboratory in the UK

–    Kavango believes this is an important exploration lead as such IOCG mineralising systems seldom occur in isolation and can be extensive

–    Minor amounts of mineral bastnaesite (a REE carbonate) identified in DITDD004

–    This may provide evidence for nearby REE mineralisation

–    REE hosting intrusions, such as carbonatites, can occur in proximity to IOCG deposits

–    Further deeper and lateral drilling at i10 will test this potential

–    Kavango’s geophysical data over Target i10 shows the presence of coincident magnetic and gravity anomalies, which are typical of IOCG deposits

–    Next steps

–    Kavango to prepare an updated exploration plan, incorporating IOCG deposit model

–    Final processing, analysis and interpretation of existing Controlled Source Audio MagnetoTelluric (“CSAMT”) data acquired in H1

–    Extensive CSAMT and gravity surveys planned across all 12 Ditau targets

–    Drill planning

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

These are surprising, positive results for Kavango. The Iron Oxide Copper Gold deposit style has never been considered at Ditau. However, given the project’s geological setting, there is a compelling logic to this model.  

Ditau sits towards the western edge of the Kaapvaal Craton and is within an established kimberlite/carbonatite corridor. These are supportive indicators of a potentially favourable environment for IOCG mineralisation. 

Sand cover at Ditau has always made this a conceptual geophysical venture, but now that we have physical evidence of hydrothermal mineralising processes occurring here this will help shape future exploration.

Our current strongest lead is Hole DITDD004, which tested Target i10 and remains open in what we believe to be an IOCG breccia at 393m. We believe i10 would benefit from deeper and lateral drilling. However, before we send a rig back to Ditau, we need to conduct more CSAMT and gravity surveys over all 12 targets. Results from these surveys should enhance our updated exploration plan and increase our confidence in future drill targeting.”


The i10 Target is a discrete 2.2km diameter magnetic anomaly (the “i10 Target”) that Kavango drilled two exploration holes into, during April and May 2022 (drill completion announced >>> 18 May 2022). The holes were designated DITDD003 and DITDD004.

DITDD004 was drilled to a depth of 393m and intercepted a Zone of Interest, from which the majority of samples in the hole were taken and sent for petrological investigation. This Zone of Interest was first interpreted to extend from 293m to 321m. However, subsequent analysis confirmed the Zone of interest extended from 293m to the end of hole at 393m and was open at depth. In addition to this, assay results confirmed the presence of a gold mineralising system in the Zone of Interest, with a peak grade of 0.175 parts per million (“ppm”) over 2m from 312m to 314m (announced >>> 30 August 2022).

i10 Petrology Results

Subsequent to this, Kavango has now received a petrology report on samples from Ditau, including hole DITDD004, which confirms brecciation and alteration that are considered to represent part of an Iron Oxide Copper Gold (“IOCG”) system.

Kavango believe this to be the first discovery of an IOCG system in Botswana.

The report, carried out by an internationally recognised petrological laboratory, describes mineralogical studies carried out on thin sections prepared from 15 samples of drill core provided by Kavango. These cover the four holes drilled in the 2022 drill program.

Work consisted of optical mineralogy, augmented on two samples by Scanning Electron Microscope Point and Identification techniques.

Kavango regards this development as an important exploration lead; such IOCG mineralising systems seldom occur in isolation and can be extensive.

Taken together it is interpreted that the protolith (initial rock type) was generally a Banded Iron Formation (“BIF”), laid down in a BIF sedimentary process that this has subsequently been partially re-worked and over-printed by later mineralised brecciation, containing predominantly pyrite and quartz and subordinate magnetite.

There are also a series of samples containing altered intrusives that are assumed to be younger. Some of these contain elevated levels of rare earth elements (“REE”). Point Identification Scanning Electron Microscopy work by the petrology laboratory identified the presence in hole DITDD004 of minor amounts of the mineral bastnaesite, a REE carbonate. This may provide evidence for nearby REE mineralisation.

REE hosting intrusions, such as carbonatites, can occur in proximity to IOCG deposits, and so the presence of more than once deposit style in the area is entirely possible.

Kavango’s geophysical data over the i10 Target, shows the presence of coincident magnetic and gravity anomalies, which are typical of IOCG deposits.

Next exploration steps

There is considerable exploration upside at Ditau, both for higher grade IOCG discovery and for carbonatites.

Multiple attributes of IOCG deposits have been identified as present at Ditau by the petrology laboratory as well as by Kavango. Exploration for both IOCG and intrusive hosted REE mineralisation is considered by Kavango to be best achieved by geophysical means. Accordingly, Kavango is planning further Closed Source Audio MagnetoTelluric, and gravity survey work over across Ditau prior to drilling.

8 of Kavango’s 12 targets remain untested by CSAMT and gravity surveys.

In addition to this the Company is considering next steps for drilling. Kavango believes Target i10 in particular would benefit from deeper and lateral drilling, with hole DITDD004 remaining in breccia at depth (393m). The Company will also assess further drilling on Targets i1 and i8, which were also drilled earlier this year.

Kavango has data queued for analysis and interpretation from the additional CSAMT surveys completed on Targets i10, i1 and i8. Further updates shall be provided in due course.

Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.

For further information please contact:

Kavango Resources plc

Ben Turney


+46 7697 406 06

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson             

SI Capital Limited (Joint Broker)

+44 1483 413500

Nick Emerson

Kavango Competent Person Statement

The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP).  Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status.  Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

#TEK Tekcapital Plc – Lucyd – Global Licensing Agreement Nautica Brand

Tekcapital Plc (AIM: TEK, OTCQB: TEKCF), the UK intellectual property investment group is pleased to announce Innovative Eyewear, Inc. (“Innovative Eyewear”) (NASDAQ: LUCY; LUCYW), a developer and retailer of cutting-edge smart eyewear and a subsidiary of portfolio company Lucyd Ltd, has licensed the global lifestyle brand Nautica® for smart eyewear.


“The Nautica smart eyewear line will stay true to the brand essence of bringing the inspiration of the sea into smart eyewear that is modern and innovative,” says Harrison Gross, CEO of Innovative Eyewear, Inc. “Our Nautica® smart eyewear collection, powered by Lucyd®, will align perfectly with today’s lifestyle, as we believe consumers are looking for designer eyewear that allows them to reman connected to their digital lives.”


The Nautica smart eyewear collection is expected to launch for Holiday 2022 or soon thereafter. 


About Nautica®

Nautica is a leading global lifestyle brand for men, women, and children, which includes home bedding collections. As a nautical-influenced classic American sportswear brand, we inspire and enable people to experience the joy of water. Nautica is one of the most recognized American brands throughout the world, with over 35 categories available in more than 65 countries with 76 Nautica stores and 291 International stores, and over 1,400 Nautica branded shop in shops worldwide. For more information, please visit https://www.nautica.com/.


About Innovative Eyewear, Inc.

Innovative Eyewear is a developer and retailer of smart eyewear, which are designed to allow the users to remain connected to their digital lives, while also offering prescription eyewear and sun protection. The Company believes that traditional frames, no matter how attractive, do not possess the functionality that many eyeglass wearers need and want. Smart eyewear is a multifunctional product that addresses the needs of the optical, hearables and digital assistant markets. We believe that the Company’s products are well positioned in this rapidly growing wearables ecosystem, with the mission to Upgrade Your Eyewear®. For more information, please visit www.lucyd.co .


Tekcapital currently owns 100% of the share capital of Lucyd Ltd and 5,189,086 shares (approximately 71%) of its U.S. operating subsidiary, Innovative Eyewear, Inc.  

For further information, please contact:


Tekcapital Plc  

Via Flagstaff

Clifford M. Gross, Ph.D. 

SP Angel Corporate Finance LLP

(Nominated Adviser and Broker)

+44 (0) 20 3470 0470  

Richard Morrison/Charlie Bouverat (Corporate Finance)/Abigail Wayne / Rob Rees (Corporate Broking)



Flagstaff Strategic and Investor Communications


+44 (0) 20 7129 1474

Tim Thompson/Andrea Seymour/Fergus Mellon



About Tekcapital plc

Tekcapital creates value from investing in new, university-developed discoveries that can enhance people’s lives and provides a range of technology transfer services to help organisations evaluate and commercialise new technologies. Tekcapital is quoted on the AIM market of the London Stock Exchange (AIM: symbol TEK) and is headquartered in the UK. For more information, please visit www.tekcapital.com .


#KAV Kavango Resources Plc – KCB – Drill Rig Mobilisation

Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) (“Kavango”) is pleased to announce that Mindea Exploration and Drilling Services Pty (“Mindea”) has mobilised the multi-purpose drill rig (the “Rig”) for the Company’s maiden drill campaign in the Kalahari Copper Belt (“KCB”).

PL082/2018 is one of Kavango’s most advanced prospecting following extensive surface exploration and geophysical surveying across the entire area.

The Rig has been mobilised to conduct a first phase drill programme on PL082/2018, where Kavango is targeting a potential analogue to Khoemacau’s Banana Zone deposit. The Banana Zone deposit sits immediately to the south of Ghanzi Ridge and exhibits similar geophysical characteristics to survey data acquired by Kavango over PL082/2018.


–     Drill rig mobilisation

–     Mindea has deployed a rig capable of reverse circulation (“RC”) and diamond core (“DC”) drilling to PL082/2018

–     Drill camp and first drill pad prepared

–     First phase drilling programme

–     Drilling to commence no later than 9 October

–     Expected completion by early November

–     Up to 6 holes (est. 1,250m) designed to test the Northern and Central anomalies (announced >>> 29 September 2022)

–     CSAMT

–     Kavango has also commenced a Controlled-Source Audio MagnetoTelluric (“CSAMT”) survey of up to 17 line-km over PL082/2018

–     Goal is to map subsurface structures to optimise drill orientation

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

In keeping with our ambitions in the Kalahari Copper Belt, we have moved fast to mobilise the rig. The speed at which we are able to work demonstrates how much progress we’ve made over the past year.

PL082/2018 is our best immediate target in the KCB. It is our most advanced licence and demonstrates the best geology at surface, which we hope could prove to be telling.

We’ve achieved near total coverage across this licence in terms of geophysical surveying, geological mapping and soil sampling. While the CSAMT survey could yet still provide a new valuable data source, we are confident in the targeting work we’ve completed to date/

We expect this first phase drill programme will last around a month, with samples sent immediately for laboratory testing. Results from this will guide future drilling.

In the meantime, our team in the field has worked hard over the last week to finalise preparations. The drill camp is set up, the first pad is prepared, and the rig is on course to commence its work later this week.

Drilling is always the most exciting activity for any exploration company, and we look forward to what the next few weeks will bring.”

First phase drill programme details

Under the terms of its contract with Kavango, Mindea has mobilised its multi-purposed rig for a first phase drilling programme (the “Drill Programme”) on PL082/2018 in the KCB. Kavango has established an exploration camp in the drilling area and cleared the first drill pad.

The Drill Programme will consist of an initial 6 holes for 1,250m of drilling designed to test 2 discrete copper geochemical anomalies (the “Target Zones”), which are aligned with mapped underlying geology at PL082/2018 (announced >>> 26th August 2022).

The details of the Target Zones are as follows:

I) Central Zone   (Cu: >30ppm, Max 118.8ppm)

–     Follows the geological trend of a sub outcropping anticline. This anticline forms the dome that hosts the Zeta and Plutus copper deposits located by Discovery Metals to the North East. The elevated copper values are postulated to represent a possible leakage zone from an underlying redox contact

–     The unit has been mapped to extend over the length of PL082/2018, extending over 27km, and is also characterised by a zone of elevated magnetic response

–     Infill soil sampling (announced >>> 29th September 2022) confirmed elevated readings along the Target, further strengthening its prospectivity

II) Northern Zone   (Cu: >30ppm, Max 39.7ppm)

–     A robust anomaly occurring in an area with no outcrop (under Kalahari cover) on the edge of a magnetic high that bears similarities to the Ourea and Quirinus copper deposits identified by Discovery Metals in 2009. These deposits are interpreted to be on the limbs of tight anticlines

–     Previous work by Kavango identified an Airborne ElectroMagnetic (“AEM”) conductor, which coincides with the geochemical northern zone identified in this latest work

–     Infill soil sampling confirmed that the Target extends over 9km of geological strike length and has a maximum width of 650m, which may comprise up to three separate parallel anomalies, with a peak value of 43ppm Cu (pXRF values)

Drilling is expected to complete by early November. Upon completion, samples will be sent to an internationally accredited laboratory for testing.

Kavango has so far identified 188 drill collar locations and aims ultimately to complete up to 37,600m or RC and diamond drilling (announced >>> 30th September 2022). These locations are centred on 14 priority target areas delineated across 4 of the Company’s 12 KCB licences, where field exploration is ongoing.

CSAMT details

Kavango has also initiated a CSAMT survey of up to 17 line-km within PL082/2018. The Company’s objective is to provide resolution of the anticipated anticline structure and to ensure optimal drill orientation.

Further information in respect of Kavango and its business interests is provided on the Company’s website at  www.kavangoresources.com  and on Twitter at #KAV.

For further information please contact:

Kavango Resources plc   

Ben Turney


+46 7697 406 06

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson   

SI Capital Limited (Joint Broker) 

+44 1483 413500

Nick Emerson

Kavango Competent Person Statement

The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP).  Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status.  Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

#ORPH Open Orphan plc – Positive in vitro results for FLU-v published

Open Orphan plc (AIM: ORPH), (to be renamed hVIVO plc (AIM: HVO) effective 26 October 2022), a rapidly growing specialist contract research organisation (CRO) and world leader in testing infectious and respiratory disease products using human challenge clinical trials, announces that positive data from a peer-reviewed study evaluating the in vitro efficacy of FLU-v, Imutex Limited’s (“Imutex”) broad spectrum influenza vaccine, has been published in the scientific journal Vaccines.1


Previous clinical studies have demonstrated that FLU-v induced increased antibody and cellular responses in vivo. This placebo-controlled study evaluated the ability of FLU-v to induce cellular effector functions and cross-reactivity (both measures of the immune response, with cross-reactivity being particularly important for protection against multiple viral strains) of immune cells extracted from participants, following exposure to five different influenza strains.


The study found that measurements of IFN-γ and granzyme B production in stimulated immune cells from participants that had been previously vaccinated with either FLU-v or placebo, were significantly higher in the FLU-v group both when stimulated with vaccine antigen and also with antigens from a panel of seasonal and pandemic inactivated influenza A and B strains. These results further support the continued development of FLU-v as a broad-spectrum influenza vaccine.

FLU-v is owned by Imutex, a joint venture between hVIVO and PepTcell Limited (the legal name of SEEK Group), to develop vaccines against influenza and mosquito borne diseases such as Zika virus, malaria and other flaviviruses.

Seasonal influenza causes significant morbidity and mortality each year and a pandemic influenza continues to pose a worldwide threat. Influenza is a serious global health threat with an estimated 1 billion cases per year, 3-5 million severe cases and 290,000 – 650,000 deaths per year.


Dr Andrew Catchpole, Chief Scientific Officer of hVIVO, said: “It is encouraging to see further positive data for FLU-v, supporting its continued development as a broad-spectrum influenza vaccine. There is a large unmet need for a broad-spectrum vaccine to help battle emerging seasonal and pandemic influenza A and B viruses. Although FLU-v had already produced successful Phase II clinical data, this in vitro study is particularly important as it showed the ability of the candidate to induce an immune response against a diverse variety of influenza A and B strains.”



1. Oftung, F.; Næss, L.M.; Laake, I.; Stoloff, G.; Pleguezuelos, O. FLU-v, a Broad-Spectrum Influenza Vaccine, Induces Cross-Reactive Cellular Immune Responses in Humans Measured by Dual IFN-γ and Granzyme B ELISpot Assay. Vaccines 2022, 10, 1528. https://doi.org/10.3390/vaccines10091528  



For further information please contact:


Open Orphan plc

+44 (0) 20 7756 1300

Yamin Khan, Chief Executive Officer


Walbrook PR (Financial PR & IR)

Stephanie Cuthbert / Phillip Marriage /
Louis Ashe-Jepson

+44 (0)20 7933 8780 or openorphan@walbrookpr.com

+44 (0) 7796 794 663 / +44 (0) 7867 984 082 /
+44 (0) 7747 515 393

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