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Considering the rapid growth of FlexiPay, with transactions nearly quadrupling to £234 million and active accounts tripling to approximately 6,500 as of March 2024, how do you anticipate this product will impact Funding Circle's overall revenue and profitability in the coming quarters?

I’ve been looking into Pensana’s cash position and funding situation based on the 2024 financials, and I’ve got a few concerns and thoughts to share.

First up, cash burn: In 2023, they were burning through about $1.45 million a month, mainly from work on the Longonjo Project in Angola and the Saltend processing hub in the UK. That monthly cash burn has increased in 2024 to around $1.68 million as project costs ramp up, showing how the capital demands are growing as these projects progress.

Cash reserves and liquidity are another big area of concern. By June 30, 2024, they had $1.52 million in cash and an additional $4.57 million available from a loan facility, totaling roughly $6.08 million in accessible funds. With the current burn rate, that only covers them for about 3.6 months, so we’re potentially looking at cash running out by mid-October unless they secure more funding.

Looking at the liquidity ratios, things don’t look great either. Their current ratio is sitting at just 0.08, far below the typical 1.5 to 2.0 range, which suggests they’re pretty limited in meeting short-term obligations. Their quick ratio is also at 0.08, highlighting the lack of liquid assets available to cover immediate liabilities. It seems they’ll need outside funding soon to keep things moving.

On the brighter side, they do have some grants lined up:

They’ve got a $3.4 million grant from the US International Development Finance Corporation (DFC) for feasibility studies, refining opportunities, and test work for the Coola Project in Angola.

There’s also a conditional grant of up to £4 million from the UK Department for Business and Trade (DBT) for the Saltend Project, aimed at setting up a rare earth processing facility in the UK.

These grants could help, but they’re conditional and depend on hitting certain milestones, so they’re not guaranteed yet.

I’m wondering if anyone has more details on the status of these grants and what’s required to actually unlock the funds. Are there other funding options Pensana might be exploring to address these immediate cash concerns? Any insights would be great as we keep an eye on how they’re handling these short-term funding needs.

Just my own thoughts based on what I’ve found – definitely not investment advice! Looking forward to hearing your thoughts!

I spent some time over the weekend looking into Hemogenyx and thought I’d share what I believe to be the main driver of this investment.

So, Hemogenyx got the go-ahead from the FDA earlier this year to start Phase I trials for their HEMO-CAR-T treatment targeting AML patients. Big news since it means they can finally get into clinical testing.

On the funding side, at the end of last year (Dec 2023), they reported about £1.25 million in cash. Since then, they’ve raised more:

In February 2024, they secured £3.3 million.

Just recently, in November, they raised another £600,000, specifically to push forward with the Phase I trial.

Now, with this FDA clearance and recent cash injections, they’re expected to kick off these Phase I trials soon, which are all about testing safety and early signs of efficacy in AML patients. They’ll be bringing in patients and watching data closely to decide on the next steps.

But a few questions come up. Even though they’ve raised close to £4 million this year, it’s still unclear if that’s enough to carry them fully through Phase I. More funds might be needed down the line, but hard to say for sure.

Also, has anyone come across any updates on the timeline for Phase I? When might we start seeing results? And do folks think the recent funding will be enough, or are we looking at more fundraising?

Just my own thoughts based on what I’ve found – definitely not investment advice! Looking forward to hearing your thoughts!

Hi,

I spent some time over the weekend looking into Jubilee Metals, especially around the 11p target set by Investors Chronicle. Thought I'd share what I found and see what you all think.

So, the latest copper production numbers came in a bit lower for the September quarter – 744 tonnes, down from 1,048 tonnes the previous quarter. They mentioned this was due to limited run time during the Roan concentrator ramp-up and power outages in Zambia, which seems to have impacted things more than expected.

On the bright side, they did complete the Roan concentrator upgrade in August, which should boost production capacity going forward. Plus, they’ve set some big goals for next year, aiming for 1.65 million tonnes of chrome and between 5,850 to 7,500 tonnes of copper. It’s clear they’re pushing forward on expansion.

But there’s a bit of a mixed picture financially. The average PGM basket price dropped 21% to $1,351 an ounce, which has cut into cash profits from those operations. Meanwhile, the share price has seen a bit of a bounce, closing at 4.75p recently after hitting a low of 4.40p in late October.

Given all of this – the production issues, but also the expansion efforts – I’m wondering if Investors Chronicle’s 11p target really seems realistic anytime soon. Does anyone here feel confident about hitting that target, or does it seem optimistic given the recent challenges?

Just my own thoughts based on what I’ve found – definitely not investment advice! Looking forward to hearing your thoughts!