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"OTAQ reports good profits growth

By Editors - 20th July 2021

Marine technology group OTAQ has reported a strong increase in revenue and profits for the year to 31 March 2021.

OTAQ, which makes the SealFence deterrent system as well as a variety of monitoring and analysis technology for the aquaculture sector, has reported an 18.5% increase in revenue, year on year, to £4.05m (2020: £3.42m) and a 17.3% increase in gross profit to £2.3m (2020: £1.96m). EBITDA was up to £542,000 (2020: £451,000).

The company also reports cash balances of £3.1m following the drawdown of a five-year £2m CBILS (Coronavirus Business Interruption Loan Scheme) facility.

During 2020/21, OTAQ acquitted the trade and assets of electronic systems design business ROS Technology, added revenue-generating contracts and made a strategic investment in Minnowtech, taking 15% of that company’s equity.

New product development included the live plankton analysis system for detecting algal blooms, in partnership with Blue Lion Labs LLC, and entering the shrimp biomass detection market through the investment in US-based Minnowtech. ..."

https://www.fishfarmermagazine.com/news/otaq-reports-good-profits-growth/

IRON's strategic investment talks were reported as being at an advanced stage on 30th. March, since when things have apparently continued to progress towards conclusion.

Presumably therefore the talks were at a very advanced stage in late April.
And a very very advanced stage in late May.
And at a very very very advanced stage in late June.
And are now at a very very very very advanced stage?

But at what stage do we need to invent a new dictionary word to describe this uber advanced stage that we must now surely be at?!

And why was the progress at FAR apparently so much faster?

In the case of FAR, Mick Davis replaced FAR's chairman, so presumably he would want to do the same at IRON if he is making a strategic investment here.

Interestingly, IRON's chairman Giles Clarke isn't actually described at such on IRON's website:

"Giles Clarke
Non executive Director"
https://www.ironveld.com/board.php

Whereas on KZG's website he is described as chairman:

"Giles Clarke
Chairman"
https://kazeraglobal.com/about-us/board-of-directors/

15th Mar 2021 7:01 am RNS Strategic Investment & Appointment of Chairman
"Strategic Investment by Vision Blue Resources and proposed appointment of Sir Mick Davis as Chairman
Ferro Alloy Resources Limited (LSE: FAR), the vanadium mining and processing company with operations based in Southern Kazakhstan, is pleased to announce that it has today entered into a subscription agreement ("Subscription Agreement") for up to US$12.6m with Vision Blue Resources ("Vision Blue" or "VBR"), a company led and founded by former Xstrata CEO Sir Mick Davis, and a limited number of co-investors ("Co-Investors"). Sir Mick Davis will join the Company's board as Chairman following completion of the Initial Investment outlined in the Subscription Agreement. Chris Thomas, current Chairman of FAR, will resume the role of Non-Executive Director on Sir Mick Davis's appointment. ..."
https://www.lse.co.uk/rns/FAR/strategic-investment-appointment-of-chairman-f77dwspburqqyjt.html

20th Jul 2021 7:00 am RNS Final Results

OTAQ, the marine technology products and solutions group for the global aquaculture and offshore oil and gas industries, announces its Final Results for the year ended 31 March 2021.

Financial Highlights

· 18.5% increase in revenue to £4.05m (FY2020: £3.42m)

· 17.3% increase in gross profit to £2.30m (FY2020: £1.96m)

· 16.2% increase in adjusted EBITDA to £524,000 (FY2020: £451,000)

· Cash balances of £3.1m following drawdown of a five-year £2m CBILS facility; net cash of £627,000 (FY2020: £2.86m)

Operating Highlights

· Achieved strong revenue and gross profit growth across the business

· £0.3m acquisition of ROS Technology Limited's trade and assets

o adding revenue generating contracts and further enhancing OTAQ's aquaculture R&D capability

· Strategic investment of 15% in Minnowtech LLC

· Focused on broadening reach through new product development including the live plankton analysis system for detecting algal blooms, in partnership with Blue Lion Labs LLC, and entering the shrimp biomass detection market through the investment in Minnowtech LLC

Alex Hambro, Non-Executive Chairman of OTAQ plc, commented: "Despite the general market backdrop and challenges, this was still an extremely productive period for the Group with positive movement across all of our key financial metrics. Importantly we continued to position ourselves for future growth, having invested in broadening our product suite and reach.

"We remain excited by the growth potential and new products that we are developing as we focus on increasing our market share as well as diversifying our geographic reach and revenue streams. We are building a strong portfolio of innovative aquaculture products focused on reducing production risks as well as increasing yields and sustainability, and are confident that the long-term market fundamentals remain strong. We are also well funded to continue investing in our product base and to consider any further acquisitions we view as a good fit." ...

https://www.lse.co.uk/rns/OTAQ/final-results-per68letf081xak.html

"Big data and artificial intelligence in the fish industry

New methods reduce costs and increase efficiency

From a global perspective the fish industry has lagged far behind most other industries with regard to the introduction of information technologies. In neither the fishing nor the aquaculture sector have these advanced technologies made sufficient headway so far. Over the past few years, however, a race has begun to catch up and improve the state of the seas and the sustainability of human activities in these important areas. ..."

http://eurofishmagazine.com/sections/technology/item/625-big-data-and-artificial-intelligence-in-the-fish-industry

From the Aquatic Network website:

"Investments & Funding Sources

With the world facing the challenges of a growing population, unsustainable traditional farming practices, overexploited fisheries, and climate change, new food production systems need to be adopted. Aquaculture and closely allied aquaponics (fish and vegetable farming) hold great potential to provide sustainable food resources to address this need.

The aquaculture industry is one of the fastest growing sectors of the food industry. Although more widely established in Asia, aquaculture is expanding in Africa, South America, and North America. ..."

https://www.aquanet.com/investments

From TradingView.com:

"OTAQ PLC ORD 15P"

"Technical analysis"

"Oscillators Summary Moving Averages"

"BUY BUY STRONG BUY"

https://uk.tradingview.com/symbols/LSE-OTAQ/technicals/

From Investing.com:

"OTAQ Technical Analysis"

"Summary: BUY
Moving Averages: STRONG BUY Buy (7) Sell (5)
Technical Indicators: STRONG BUY Buy (5) Sell (1)"

https://uk.investing.com/equities/otaq-technical

18th Mar 2021 7:00 am RNS Diamond Production, HMS Extension and Investment
" ... Heavy Mineral Sands Project
Following the Company's RNS on December 2021 in which it announced that the completion date for the acquisition of a 90% stake in Whale Head Minerals (Pty) Ltd had been extended to 31 March 2021, the Company is pleased to report that Tectonic have agreed to a further extension to 30 June 2021.
The delays in processing mining rights applications have recently been raised in the South African Parliament and local expectation is that a number of pending cases will now be expeditiously resolved. ..."
https://www.lse.co.uk/rns/KZG/diamond-production-hms-extension-and-investment-9vwiy3fo5z69cvc.html

1st. June IRON RNS - the intended strategic investor is South African:

1st Jun 2021 7:00 am RNS Luge Mining Right Application Accepted
" ... On 30 March 2021, the Company announced that it was in talks with a South African investor seeking to take a substantial strategic equity stake at the listed company level. Whilst progress on the transaction has taken longer than initially expected, positive discussions have continued and the Directors remain optimistic that a deal can soon be concluded. ... "
https://www.lse.co.uk/rns/IRON/luge-mining-right-application-accepted-4bydanyi5yuffq9.html

In contrast, both of KZG' s (potential) investors are Namibian:

3rd Jun 2021 7:00 am RNS Operational Update
" ... A new opportunity with a second Namibian investor who, following completion of due diligence by both parties, has signed agreed initial terms to subscribe $11 million for 290,576,383 shares in the Company ... "
https://www.lse.co.uk/rns/KZG/operational-update-x05xcvw0f8xy41o.html

Is IRON's intended South African investor Mick Davis?

The timing of IRON's 30th. March statement, that they were in advanced talks for such an investment, certainly fits well time-wise with the launch of Mick Davis's Vision Blue fund.

30th Mar 2021 7:00 am RNS Interim results for the 6 months ended 31 Dec 2020
" ... Talks at an advanced stage with a major partner seeking to take a strategic equity stake in the Company at a premium to the current share price. ...
Possible transaction
The Company is at an advanced stage in talks with an investor seeking to take a substantial strategic equity stake at the listed company level at a premium to the current share price in order to assist the Group with the next stage of its development. Whilst there are currently no guarantees that such a transaction will be completed or by when, the Directors are hopeful of being able to conclude a meaningful transaction in the coming weeks. ..."
https://www.lse.co.uk/rns/IRON/interim-results-for-the-6-months-ended-31-dec-2020-9z0lzqmky5ogeym.html

"Launch of Vision Blue Resources, closure of US$60m fundraising and first
investment in NextSource Materials

Highlights
• Vision Blue Resources launched by Sir Mick Davis to rapidly build a portfolio of
strategically significant investments in battery mineral assets
• First fundraising of US$60m concluded in 5 weeks to complete imminent
transactions
• Initial investment of US$29.5m in NextSource Materials to:
o Bring high quality Molo Project in Madagascar into production in less than
1 year, with significant further expansion potential
o Investigate potential to produce purified graphite for lithium-ion batteries
in electric vehicles
• Pipeline of future investments already identified with further fundraisings by VBR
expected in 2021 in response to expressions of investor interest

London 8, February 2021 ...

Mick Davis said: ...
“The impact of rapidly growing demand for battery minerals is likely to lead to a surge in demand for specific commodities that will dwarf anything the mining industry has ever seen before, including the commodity impact of China’s industrialisation in the last 20 years. In combination with this surge in demand, a failure to develop new sources of supply highlights the need to ensure that critical mining assets are immediately financed and brought to production. ...
In addition to supplying traditional markets for graphite and rapidly growing electric battery materials markets the Project is well positioned to meet demand for heat dissipating materials in modern electronics systems including increasing needs for 5G rollouts.” "

https://www.vision-blue.com/

"DunsterianChap. You and your 3 herd friends are a bit thick I contend. You are now saying it is out of EML's control, but the other day, you said , in your considerable experience of these matters, that a little cajoling may be necessary to get events moving. Now what is it?, gentle cajoling, or do nothing, as you originally intimated?. I believe yesterdays appointment is a clear signal that EML want more 'cajoling' in Country."

T.P.,

You are the thick one.

In fact, perhaps your initials stand for 'Thick Prat'?!

The environmental permit issuance if beyond EML's control, but that's difference from saying that it's beyond their influence - there is a subtle difference.

And trilingual Mr. Rupert Joy, who became an EML director yesterday with immediate effect, will be able to help that influence.

But that is just a bonus, as he would be a very useful addition anyway even if the permit had already been issued.
To assist EML as it continues " ... to build commercial partnerships across Morocco and the wider global markets."

"Ex-President Jacob Zuma sentenced by South Africa's top court
Published 29 June

... "I am left with no option but to commit Mr Zuma to imprisonment, with the hope that doing so sends an unequivocal message... the rule of law and the administration of justice prevails." ...

But while there may be some protests against the court's majority decision, many more South Africans are likely to welcome the judiciary's firm stance after years in which it seemed the rule of law was being eroded by a culture of high-level impunity. ..."

https://www.bbc.co.uk/news/world-africa-57650517

Steven,

The jailing concerned shows that the rule of law prevails in South Africa, and that no one is above it.
You've previously (re. KZG) complained about corruption in South Africa, so surely you should welcome this.
It should help to attract investment into the country.

IRON's talks were reported as being at an "advanced stage" on 30th March, and the investor concerned is South African.

The investor will be investing for the long-term, potentially decades.
So very short-term unrelated events, sad as they may be, shouldn't affect the investment.

IRON did actually rise abut 9-fold in under a year in the early apart of this decade, from low to high (2p to about 18p).

It's fallen a long way since then, in line with the sector, but that is an indication of how undervalued it is.

By way of comparison, FAR floated in early 2019 at 70p, and by mid 2020 had fallen to barely a tenth of that level.

But it then multibagged virtually overnight earlier this year, on a funding deal of the type that IRON is arranging.

28th Mar 2019 7:00 am RNS Admission to Trading on the London Stock Exchange
"Ferro-Alloy Resources Limited, the Guernsey vanadium mining and mineral processing company with operations based in Southern Kazakhstan, is pleased to announce that its entire issued ordinary share capital will commence trading on the standard listing segment of the Official List of the Financial Conduct Authority and on the Main Market of the London Stock Exchange at 8.00 a.m. today under the ticker FAR.L and ISIN GG00BGDYDZ69 ("Admission"). The Company is dual listed on the Kazakhstan Stock Exchange (KASE).
As part of the Admission process, the Company has successfully raised £5.2 million (before expenses) from institutional shareholders through a Placing and Subscription of 7,507,761 new ordinary shares of no-par value (the "Ordinary Shares") at a placing price of 70p each, implying a market capitalisation of £219.1 million on Admission. Following Admission, the total number of Ordinary Shares in the Company in issue will be 312,978,848 each with equal voting rights. ..."
https://www.lse.co.uk/rns/FAR/admission-to-trading-on-the-london-stock-exchange-6kbvzzug25emqof.html

The key difference now, compared to a year or two ago, is that we have now entered the early stage of a battery metals bull market, that looks like it has a long way to run.

And in a very cyclical industry like mining, that is all the difference in the world.

Barravelli,

Obviously they don't have the money to build the mine yet, because that follows the environmental permit.

Though they do of course have their mining licence, which was granted in February.

And a strong potash price and outlook will reassure investors, and help to raise finance on better terms than otherwise.

It all looks good to me, and I am supremely relaxed here!

“ Emmerson now awaiting final approval to be called for the evaluation meeting by the EEC, expected to be received imminently, subject to COVID restrictions in Morocco*.”

Kimhappy,

I think you've misunderstood the wording.

My understanding is that they were expecting to receive notice of the meeting imminently.

Which for all we know they may have done.

THE ELEVENTH HOUR PRINCIPLE

"COPIED FROM “BEING HAPPY” BY ANDREW MATTHEWS

In seeking goals, it is important to know about these “eleventh hours.”

Have you ever noticed in life that things can look really bleak just before a dramatic turn for the better? The businessman reports that just before he made his fortune, he was about to quit. Perhaps you have had the experience. Life is like that because there is a principle at work here – the ‘eleventh hour’ principle. it is always darkest and coldest just before the dawn. But if we hang on long enough, we will get our rewards.

If we look at childbirth, we see the principle in evidence also. Just before the most incredible gift of life, the mother-to-be has her patience truly tested and undergoes considerable pain and anguish. (My mother said it was all worth it.)

Once we recognize the eleventh hour for what it is, life loses a lot of its trauma. In effect, the universe often seems to be testing us to see if we are serious about attaining our goal. If we hang on that little bit longer….BINGO!

Once we realized what was happening, we can actually be one step ahead. When everything looks bleak, we can then tell ourselves, “So everything is going wrong! This could mean that everything that I have been striving for is just around the corner.” Then we should feel better.

We will generally be tested in some way before achieving something of value. If we can pick the eleventh hour for what it is; and treat any difficulties as a necessary part of the process of achievement, then, firstly we won’t be quitters, and secondly, we will achieve whatever we desire in life.

Don’t be fooled. The eleventh hour is usually an impostor. When everything looks black, it could be time to celebrate. You may be nearly home."

https://10vantagepoint.wordpress.com/2010/08/25/eleventh-hour-principle/

Big deals take time, and a big investor will want to have done their due diligence before signing.

Then you have the negotiations about price etc, with Giles Clarke holding our for a good premium price reflective of the the immense value and prior investment here.

But I think that enough time has now elapsed.

And I would say that it's odds on that we will hear something next week.

I think that they will know that an update is due/overdue.

So if they were expecting a significant further delay, they might well have said so already this month.

Whereas if the deal signing is actually imminent, that could remove the need for an update in advance of that.

So no news in this case could actually be good news.

30th Mar 2021 7:00 am RNS Interim results for the 6 months ended 31 Dec 2020
" ... Talks at an advanced stage with a major partner seeking to take a strategic equity stake in the Company at a premium to the current share price. ...
Possible transaction
The Company is at an advanced stage in talks with an investor seeking to take a substantial strategic equity stake at the listed company level at a premium to the current share price in order to assist the Group with the next stage of its development. Whilst there are currently no guarantees that such a transaction will be completed or by when, the Directors are hopeful of being able to conclude a meaningful transaction in the coming weeks. ..."
https://www.lse.co.uk/rns/IRON/interim-results-for-the-6-months-ended-31-dec-2020-9z0lzqmky5ogeym.html

The closing share price on Monday 29th. March was 0.525p, so the reference to a premium investment means higher than that level.

But I would think that the talks were about a level at more than even the current s.p. of 0.76p.

In my opinion, likely being a big funding deal at at least about a penny or more.

And potentially well in excess of that, with warrants at even higher prices.

That said, in the absence of news, there's a risk that the s.p. could drift back even further.

But of course news could come any day, sending the s.p. rocketing.

So if you believe in the story here, you really have to stay put, and take any fallback on the chin ... topping up if funds permit.