The following stocks are the leading risers and fallers on AIM in London on Wednesday.
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AIM - WINNERS
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Europa Metals Ltd, up 42% at 3.98 pence, 12-month range 2.5p-5.3p. The lead, zinc and silver mine developer enters into an option agreement with Denarius Metals Corp, granting Denarius the right to acquire up to 80% of its wholly-owned Spanish subsidiary, Europa Metals Iberia. The subsidiary holds the Toral project in northwest Spain. Should shareholders approve the deal, Europa would secure an initial $4.0 million for the Toral project, with a potential future cash payment of $2.0 million. The first amount would give Denarius a 51% stake and the second an additional 29%. Europa Metals also conditionally raises £580,000 via subscription of 12.9 million new shares at issue price of 4.5p, a 61% premium to the closing price of 2.8p on Tuesday.
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Zanaga Iron Ore Co Ltd, up 23% at 4.1p, 12-month range 1.7p-5.2p. The part owner of the Zanaga iron ore project in the Republic of Congo reaches an agreement to buy Glencore Projects’ controlling shareholding in the project. This would be enacted via the purchase of Glencore Projects’ 50% plus one share interest in Jumelles - an entity which indirectly holds the benefit of the ZIO project’s mining license - in exchange for the issue of 286.3 million new shares to Glencore Projects. This would represent a shareholding of 48% in ZIOC. ‘The acquisition is value accretive to shareholders and increases effective equity ownership of the project by existing shareholders, enhancing their look-through ownership of the project and securing control of the project without paying any premium for such interest,’ says Chair Clifford Elphick. Glencore Projects is a subsidiary of Swiss-based miner Glencore PLC.
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AIM - LOSERS
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Alliance Pharma PLC, down 30% at 42.46p, 12-month range 41.28p-122p. The distributor of consumer healthcare brands and prescription medicines says some larger orders in the fourth quarter of 2022 will not materialise. This is due to a slower-than-expected recovery in the business-to-business market, as well as a hit to sales from ‘a one-off destocking effect’. It now expects annual revenue to be at least £170 million, with underlying pretax profit of at least £30 million. This is compared with 2021’s revenue of £163.2 million and underlying pretax profit of £42.2 million. CEO Peter Butterfield will take time off from the business ‘for personal reasons’, and return in January. Chief Financial Officer Andrew Franklin will assume his responsibilities in the meantime.
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Applied Graphene Materials PLC, down 39% at 3p, 12-month range 3p-28.5p. The graphene developer begins strategic review in light of its ‘funding position and...the unfavourable conditions in small-cap equity markets’. The options pursued may include raising funds from a specialist debt provider or strategic investor, selling its trade and assets, or selling shares in its main operating subsidiary. It also decides to begin statutory redundancy consultations with its employees, to protect its financial position in case the review does not reach ‘a satisfactory conclusion’.
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