London’s AIM All Share index may have found itself under a degree of selling pressure on Tuesday but losses were far more constrained than those seen on the main board. Approaching the close and the index is less than half a point lower at 764.7.
- Nightcap +41%
- Capital Metals +32%
- ECR Minerals +14%
- Chaarat Gold -49%
- Harvest Minerals -48%
Nightcap LON:NGHT, the bar operator which is heading towards a delisting subject to shareholder approval, topped the board on Tuesday, up 41%. Reports that a private investment company had acquired a close on 14% stake in the firm appears to be behind the move, although with liquidity drying up the stock is trading on a 16% spread.
Capital Metals LON:CMET was in second place, up 32%. This afternoon the company announced that it had appointed a COO with specialist knowledge of the mineral sands mining industry, with the gains coming off the back of this news.
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Chaarat Gold LON:CGH was the worst performer at copy time, down by some 49%. The company is struggling financially with a series of debt repayments due but limited cash reserves available. Negotiations are continuing but the Executive Chairman has now stepped down as he risks being conflicted, given his interests in one of the parties that extended the loan. Management add to the pessimism with a note over fiduciary duty and the fact their options are running out.
And Harvest Minerals LON:HMI also struggled with the company this morning issuing new, discounted equity to cover fees owed to multiple parties whilst also raising some surplus cash. The 48% fall in the share price essentially reflects the mark down applied to the new equity, but allows the company to meet ongoing working capital requirements.
ECR Minerals LON:ECR gets the notable mention, up 14% on the day. In a day of meaningfully higher than normal volumes, the share price reaction has coincided with an announcement that advisers have been appointed to help the company realise value from the $75m of tax losses being generated off the back of sales.
