By William Farrington At Proactive Investors For This Is Money
Updated: 13:16 26 Jan 2024
There’s something lurking in Helium One Global Ltd’s basement, but in the best possible way.
The exploration firm revealed that it successfully drilled the Itumbula West-1 well in Tanzania to its total depth of 961 metres, with the well encountering elevated helium shows described as “over twenty times the background levels”.
“We have encountered elevated helium shows, as the team had anticipated pre-drill, all the way to basement,” chief executive Lorna Blaisse announced.
Helium One also announced elevated hydrogen levels in the well; particularly in the Lake Beds, where it was measured “over two thousand times above background”.
The wireline logs are the crucial next step in identifying which intervals will be tested and sampled for further evaluation.
One thing that wasn’t in the basement was Helium One’s share price, which burst through the attic on the bullish drilling update, closing the week at the top of the AIM leagues, 190% higher.
As for the wider junior market, the AIM All-Share Index surged 1.75% in a broadly bullish week for equities as a whole.
Stock prices enjoyed a late-week rally on the back of promising economic data emerging from across the pond.
S&P Global’s Flash composite US PMI rose to 52.3, from 50.9 in December, showing faster growth, primarily driven by the services sector.
Back at home, consumer confidence in the UK reached its highest level in two years as optimism for the coming 12 months looks to be on the up.
There was more good news emerging from the mining sector, with Golden Metal Resources plc shares rallying 40% after the explorer reported significant gold-silver-copper findings at its wholly owned Garfield project in Nevada.
The company, in a statement, highlighted “bonanza grades” in its project update – measuring up to 1,225 grams per tonne silver, including 18.35g/t gold and 1.89% copper.
Meanwhile at Beowulf Mining plc, shares flew 69% higher following a favourable court decision regarding the exploitation of mining deposits in the north of Sweden.
The highly controversial Kallak mine has drawn protests from Sweden’s indigenous Sami population, who fear that reindeer migration patterns will be interrupted, and climate activist Greta Thunberg.
Thunberg has previously said of the plans: “Sweden pretends to be a leader for environment and human rights, but at home they violate indigenous rights and continue waging a war on nature… The world will remember this.”
But the Swedish government said: “Sweden is today a large and important mining nation, and the Swedish mining and mineral industry is of great importance to Sweden nationally, in the regional and local perspective and beyond Sweden’s borders.”
Power Metal Resources plc and Harvest Minerals Ltd were also top movers, adding 21% and 19% respectively.
In the creative sector, System1 Group climbed 24% after the marketing firm said recent deals with a string of household names meant full-year expectations would be smashed.
Some 60 new clients, including Pfizer, Marks & Spencer, Tesco, easyJet, Toyota, Muller, B&Q and Just Eat, all signed up to use System1’s tests which assess the effectiveness of marketing ideas and strategies.
Things got heated at Active Energy Group plc, or not heated enough, to be more accurate.
The group summoned lawyers after the contractor building its first CoalSwitch ‘black pellet’ biomass plant refused to commit to future production.
According to Active, PDI is “no longer willing or able to commit” to a future production date or production volumes for CoalSwitch fuel.
“The actions of PDI are as surprising as they are disappointing after a long journey toward the production of CoalSwitch fuel, especially given the fact that Tyler Player is a shareholder of Active Energy,” stated Active chief executive Michael Rowan.
Rowan sought to reassure shareholders, but Active saw a 73% hit to its valuation nonetheless.
Shares in Molecular Energies plc were also off, more than halving to a new all-time low after the company raised £500,000 at a big discount.
The energy company, formerly known as President Energy, offered new shares at 35p each, a substantial markdown to the 73.5p close yesterday in a placing primarily targeting institutional investors, but with retail shareholders still invited to participate.
Coral Products plc sunk 29% after the plastic products maker scrapped the interim dividend it had announced just over a month ago due to a deterioration in trading.
Annual revenues will now be 10% below last year’s £35.2 million with margins hit by the lower sales, the group conceded.
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