DirectorsTalk Sustainability News and Sustainability section contains exclusive content on some of the fastest growing London-listed companies and industry sectors that are contributing to a more sustainable world. Here’s a roundup of DirectorsTalk’s most popular Sustainability-related news in June 2021.
Cadence Minerals plc (LON:KDNC; OTC: KDNCY) has announced its final results for the year ended 31 December 2020. During 2020, Cadence’s strategy bore fruit with the Company delivering both a net profit of £7.8 million (2019 loss of £1.9 million) and reporting considerable progress across its key investments. Furthermore, in 2020, the Company repaid the vast majority of its outstanding convertible debt and in April 2021 repaid it entirely.
Kiran Morzaria, Chief Executive Officer, noted:
“With the vaccine rollout accelerating globally in 2021, there are expectations for sharp recoveries across most leading economies. Added to this, the new $1.9tn stimulus package in the US from the Biden administration will see heavy investment into ageing US infrastructure. These factors should ensure sustained demand and pricing for iron ore and base metals. The move towards EV’s is accelerating rapidly, with a plethora of commitments from key automotive manufacturers such as Ford, Volvo, BMW and Jaguar to switch to electric-only production in the next few years. The net effect is that specific commodities and minerals assets that we have invested in are undergoing a significant global resurgence. I believe that our diverse and complementary nature of investments is uniquely positioned, with downside risk protection and several potential scenarios which could create substantial value to the Company.”
Dekel Agri-Vision Plc (LON:DKL), the West African focused agriculture company, announced in its audited results for the year ended 31 December 2020 an across the board uplift in key financial metrics driven by 22.6% rise in crude palm oil (‘CPO’) prices and higher extraction rates more than offsetting lower CPO production. Full year revenues are up 7.7% to €22.5 million; EBITDA up 500% to €1.2million; net loss decreased to €2.3m (2019: €3.3m).
Dekel Agri-Vision Executive Director, Lincoln Moore, said,
“This set of results, in our view, clearly demonstrates the resilience of the Company that we had predicted. 12 months on, and with a strong performance from our palm oil operations in H1 2021, coupled with the imminent commissioning phase of the Tiebissou cashew processing project approaching, we believe we are on the cusp of a material step up in financial performance.
“Importantly, Tiebissou offers not one but a series of step-ups in revenue generation and profitability. We expect to increase capacity at the plant by 50% to 15,000tpa within 12-24 months at no cost and from there to double production to 30,000tpa. Together with Ayenouan we have a defined path in place to treble group revenues to c. €60million within the next two to three years. Arguably, this is a conservative estimate as it does not take into account our plans to add a third commodity to our portfolio and also the joint venture agreement we have with Green Enesys regarding the potential development of a 30MW solar PV plant and a 5-6MW biomass plant using feedstock from Ayenouan. The possible biomass plant would also add to our already strong ESG credentials, which are expected to be independently validated later this year following the completion of the RSPO certification process, which could in turn open up export markets for our palm oil.
“We are delivering on our objective to build a multi-project, multi-commodity agriculture business, which benefits not just investors but all stakeholders, including the local community in which we operate.”
Ferro-Alloy Resources Limited (LON:FAR), the vanadium mining and processing company with operations based in Southern Kazakhstan announced its final results for the year ended 31 December 2020. During the year, production of vanadium pentoxide increased by 56% to 237 tonnes; revenue increased to US$2.4m (2019:US$1.8m); connection to adjacent high voltage power line completed with first power expected late July 2021; commissioned and expanded the pyrometallurgical process line creating new revenue stream and wide range of technological developments. Publication of the expanded Feasibility Study is expected mid-2022.
Post-Period, the Company announced, amongst other things, the strategic long term investment by Vision Blue Resources in March 2021 with investment to date totalling $3.1m, plus further options available to Vision Blue to invest an additional $9.5 million at an agreed price of £0.09 per share, plus a further $30 million at higher prices to finance construction of Phase 1 of the Balasausqandiq vanadium project
Nanoco Group plc (LON:NANO), announced an update on its litigation against Samsung for the alleged wilful infringement of the Group’s IP and an intention from our major shareholders to provide a non-dilutive debt facility to the Group.
Brian Tenner, Chief Executive Officer of Nanoco Group plc, commented:
“We are making strong progress in our sensing materials with customer published roadmaps indicating potential commercial production in 2023. We also continue to develop new strategic relationships. With a low and sustainable cost base underpinning our core capabilities, production revenues will quickly see the Group move to break even and organic cash generation in the short to medium term. The support of our major shareholders will bridge the gap to that point in time and also ensure our robustness throughout the Samsung litigation process.”
Jubilee Metals Group plc (LON:JLP), a leader in metals processing with operations in Africa, has today announced acquisitions of strategic PGM tailings and an update at its South African chrome and PGM operations. The Company also hereby provides an update on the expansion of the Inyoni PGM Operations. CEO, Leon Coetzer, said, “this new long term PGM Supply Agreement announced today are of significant strategic value to Jubilee and expand our operations onto the Eastern Limb which provides the platform to source further growth opportunities.”
