London’s AIM Index had another lacklustre session, rangebound but closing in negative territory. The junior market reached the bell some six points lower at 1242.81
- Rurelec +25%
- Phoenix Copper +15%
- Argos Resources -19%
- Tern Plc -14%
- 88 Energy +11%
Rurelec [LON:RUR] saw its shares jump 25% to the top of the board today in the wake of news that a partial debt repayment of $480,000 had been made. The company is in the process of recovering repayments on loan notes and there’s still some $14m outstanding, so given the current market cap sits at just £4m, there’s upside to be had here – assuming the relevant amounts can be recovered.
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Phoenix Copper [LON:PXC] also had a good day, reaching the bell some 15% ahead in the wake of some upbeat drilling results from Idaho. Management note these as being “exceptional” results off the back of visual inspection, with the subsequent assays likely to provide further clarification here.
A notable mention for 88 Energy [LON:88E] which has been on our agenda before and has certainly had a volatile few days. Today saw the stock add 11% by the close after providing an update on its drilling program, but despite today’s gains the price is still 10% below the highs achieved off the back of that tax credit sale which paid down debt.
Argos Resources [LON:ARG] found itself under pressure later in the session, with shares sitting down 19% by 4.30pm. Whilst the company may well be favourably positioned to benefit from new drilling permits in the South Atlantic, the move today came off a limited number of trades impacting this £5m firm. With a 10% spread, usual caveats apply…
The second biggest faller was IDE Group but this is a £5m company trading on a 15% spread and there’s no news so we’ll look at the third biggest faller, Tern PLC [LON:TERN] which dropped at the open in the wake of a discounted fundraise. This completed yesterday and announced ahead of today’s open. Shares reached the bell some 15% lower, which still reflects a small premium over the new issue. Funds will be used to strengthen the balance sheet, enable the company to commit to follow on investment opportunities, facilitate new investment and also provide general working capital.