Upstream Share Discussion Threads

[master rsi] 01/3/2024 11:55

FD Technologies agrees merger of MRP unit with Contentgine

(Alliance News) - FD Technologies PLC on Friday said it agreed for one of its unit to merge with a provider of technology buyer insights, and said it expects revenue to be slightly below guidance.

The County Down, Northern Ireland-based group of data-driven businesses, including technology and digital solutions providers KX, First Derivative, and MRP, said it had concluded its structure review.

FD Technologies shares dived 30% to 927.65 pence each on Friday morning in London.

The company said its MRP business will merge with CONTENTgine, a provider of business-to-business technology buyer insights and lead generation.

It said: "The changes announced today represent a major transformation of FD Technologies and reflect the determination of the management and board to realise value for all stakeholders from a unique portfolio of businesses with different capital needs and future opportunities.

"As we progress this plan, we will review the appropriate board composition and update the market in due course." ...........

[master rsi] 01/3/2024 11:29

Orchard Funding shares fall on 'instance of fraud'

(Sharecast News) - Finance group Orchard Funding warned on Friday that it had "suffered an instance of fraud", arising from dealings with a fraudulent introducer.

Orchard said it had struck fraudulent credit agreements with the introducer, leading it to conduct "a thorough review" of its wider lending book and introducer network to ensure that no fraud risks exist elsewhere in its current loan book.

The AIM-listed group also launched a review of its systems and controls to ensure that the risk that it suffers a similar fraud in the future can be minimised.

"The board has made a provision of approximately £500,000 in respect of these fraudulent credit agreements, which will have a knock-on impact on the group's year-end financials," said Orchard.

"The provision represents the group's total exposure to these fraudulent credit agreements, and there are no other agreements in place involving the group which have been introduced via this introducer."

As of 1100 GMT, Orchard Funding shares were down 27.18% at 17.84p.

[master rsi] 01/3/2024 10:53

AMS-Osram Shares Tumble 45% After Apple Allegedly Cancels Micro-LED Project, Impacting Future Plans
Ayesha Mumtaz
29 Feb 2024 08:26 EST /AMS-Osram AG faces a crisis as shares plummet by 45% due to the cancellation of a major micro-LED project with Apple. The fallout includes potential sale of Malaysian facility parts and strategic shifts in response to severe financial repercussions and industry impact.

AMS-Osram AG, a key player in the semiconductor industry and supplier for tech giant Apple Inc., faced a severe blow as shares plummeted by up to 45% following the abrupt cancellation of a highly anticipated micro-LED project. The fallout from this decision has forced AMS-Osram to contemplate the sale of parts of its Malaysian production facility, signaling a significant shift in the company's future plans. CEO Aldo Kamper underscored the gravity of the situation, acknowledging the tough choices ahead due to the loss of a pivotal project slated for the Apple Watch with a 2026 start date.

Severe Financial Repercussions and Industry Impact
The cancellation not only led to the company's shares hitting their lowest mark since the 2009 IPO but also resulted in a staggering impairment charge ranging between €600 to €900 million. This financial hit underscores the volatility of the semiconductor market and the high stakes involved in manufacturing next-generation consumer electronics components. Analysts are closely watching the repercussions of this development, not only for AMS-Osram but for the broader industry, particularly as the sector grapples with a downturn and diminishing consumer device demand.

Strategic Shifts and Operational Overhaul
In response to this setback, AMS-Osram is reassessing its strategy, particularly its investments in micro-LED technology, known for its potential to revolutionize the display industry. The cancellation forces a reevaluation of the second phase of its Kulim plant in Malaysia, a facility that represented a significant expansion of AMS-Osram's manufacturing capabilities. The company is now faced with the challenge of navigating through these turbulent times, with a focus on adjusting its mid-term revenue growth target and improving its cash flow profile amidst uncertain market conditions.

Looking Ahead: Implications for AMS-Osram and the Semiconductor Industry
The abrupt end to this project with Apple, a key customer, has far-reaching implications not only for AMS-Osram but also for the semiconductor industry at large. Competitors and partners alike are closely monitoring the situation, gauging the potential ripple effects on supply chains and technology development timelines. As AMS-Osram regroups and strategizes its next steps, the industry awaits to see how this pivotal event will influence the adoption and production of micro-LED technology and reshape market dynamics in the years to come.

[master rsi] 01/3/2024 10:07

Downturn in UK manufacturing continues into February

(Alliance News) - The UK manufacturing downturn continued in February, as weak demand and the Red Sea shipping crisis disrupt production, new survey data on Friday showed.

The seasonally adjusted S&P Global UK manufacturing purchasing managers' index reading was 47.5 points in February, up from 47.0 in January and above the earlier flash estimate of 47.1.

Whilst the February score was up from the prior month, the figure remained below the 50-point no-change mark. This means the UK manufacturing sector shrank again last month.

Although the PMI has signalled contractions in each of the past 19 months, the latest reading was the best since April 2023.

S&P said that four out of the five PMI sub-components – output, new orders, employment and stocks of purchases – were showing trends consistent with overall contraction. The only sub-index to have a positive effect on the PMI level was suppliers' delivery times, which lengthened to the greatest extent since July 2022.

"UK manufacturers faced challenging circumstances in February, as the ongoing impact of the Red Sea crisis delayed raw material deliveries, inflated purchase prices and impacted production capabilities. There were also knock-on effects for demand, as new export orders were hit by both supply disruptions and higher shipping costs. Production volumes subsequently contracted for the twelfth successive month while total new orders fell at the sharpest rate since October," said Rob Dobson, Director at S&P Global Market Intelligence.

The manufacturing survey draws upon a panel of 650 firms. Responses to the survey are collected in the second half of the month.

[master rsi] 01/3/2024 09:21

MARKET REPORT
LONDON MARKET OPEN: Housebuilders rise as UK housing market recovers

(Alliance News) - Stock prices in London opened mostly higher on Friday, after data from Nationwide showed that the UK housing market is recovering.

The FTSE 100 index opened up 40.73 points, 0.5%, at 7,670.75. The FTSE 250 was up 74.12 points, 0.4%, at 19,128.99, and the AIM All-Share was down 0.03 of a points at 736.47.

The Cboe UK 100 was up 0.3% at 768.41, the Cboe UK 250 was up 0.2% at 16,500.90, and the Cboe Small Companies was down marginally at 14,459.80.

In European equities on Friday, the CAC 40 in Paris was up 0.1%, while the DAX 40 in Frankfurt was up 0.6%.

In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.1%, the S&P 500 up 0.5% and the Nasdaq Composite up 0.9%.

"Thank God! Yesterday's inflation report from the US wasn't worse than expected," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

US inflation pressure eased a touch at the start of the year, according to new data.

According to the Bureau of Economic Analysis, the core personal consumption expenditure grew 2.8% on-year in January, easing from December's 2.9% rise. The core PCE reading is the Fed's preferred inflation gauge.

The outcome came out in line with FXStreet cited consensus.

The pound was quoted at USD1.2634 early on Friday in London, down compared to USD1.2636 at the equities close on Thursday. The euro stood at USD1.0813, up against USD1.0811. Against the yen, the dollar was trading at JPY150.63, higher compared to JPY149.82.

Meanwhile, new data on Friday showed that UK house prices edged higher in February, indicating signs of recovery in the housing market.

The Nationwide house price index showed a 0.7% increase in seasonally adjusted UK house prices in February from January, the same monthly rise as in January. According to FXStreet, market consensus expected the house price index to edge up just 0.3% last month. House prices had been flat in December.

In February, the average UK house price stood at GBP260,420, up slightly from GBP257,656 in January, without seasonal adjustment.

Annually, the house price index rose 1.2% in February, after a 0.2% fall in January. This came in higher than consensus, with markets expecting a 0.7% increase.

"The decline in borrowing costs around the turn of the year appears to have prompted an uptick in the housing market. Indeed, industry data sources point to a noticeable increase in mortgage applications at the start of the year, while surveyors also reported a rise in new buyer enquiries," said Robert Gardner, Nationwide's chief economist.

On the back of the data, London's blue-chip housebuilders were trading higher. Taylor Wimpey was up 1.1%, Barratt Developments rose 0.8%, and Persimmon edged 0.5% higher.

Elsewhere in the FTSE 100, Rightmove lost 3.4%.

In 2023, the property portal reported revenue jumped 10% on-year to GBP364.3 million from GBP332.6 million. Pretax profit in the year climbed to GBP259.8 million from GBP241.3 million.

On the back of the results, Rightmove paid out a final dividend of 5.7p, bring the total dividend to 9.3p up from 8.5p.

In the FTSE 250, ITV jumped 15%.

ITV said it has sold its entire 50% interest in digital subscription streaming service BritBox International to its joint venture partner BBC Studios for a cash consideration of GBP255 million.

"The sale reflects ITV's strategy of focusing on supercharging its UK advertiser-funded streaming service, ITVX and growing its global Studios division," ITV said.

The ITV board intends to return the entire net sale proceeds to shareholders through a share buyback which it expects to launch after the release of its full year results on March 7.

Amongst London's small-caps, Superdry lost 11%.

The clothing retailer said that it is extending its PUSU deadline with Chief Executive Julian Dunkerton. It has been extended to March 29.

Earlier in February, Dunkerton confirmed that he is in discussions with potential financing partners. This could include a possible cash offer for the entire issued and to be issued share capital of the company, not already owned by him.

"Discussions with Julian Dunkerton and potential sponsors regarding a possible offer for the company remain ongoing alongside the company's continued work on its turnaround plan, including its exploration of various material cost saving options, which is expected to be an important element of any such offer," Superdry said.

In China, the Shanghai Composite was up 0.4%, while the Hang Seng index in Hong Kong was up 0.5%.

Two survey readings painted a mixed picture of China's manufacturing sector activity in February.

According to China's National Bureau of Statistics, the manufacturing purchasing managers' index came in a 49.1 points in February, a touch below January's reading of 49.2 - a sub-50 reading indicates a contraction.

However, the Caixin China manufacturing PMI suggested a slight expansion, rising to 50.9 from 50.8.

"Helping to nudge the headline index higher was a slightly quicker rise in manufacturing production across China during February. Though modest, the rate of output growth was the fastest seen since May 2023, with companies generally attributing this to a sustained improvement in market conditions and greater new order volumes," Caixin said.

In Asia on Friday, the Nikkei 225 index in Tokyo was up 1.9%. The S&P/ASX 200 in Sydney closed up 0.6%

Brent oil was quoted at USD81.81 a barrel early in London on Friday, down from USD82.13 late Thursday. Gold was quoted at USD2,040.44 an ounce, lower against USD2,045.84.

The economic calendar on the first day of March has a slew of purchasing managers' index, including China and Japan overnight. Numbers for the eurozone are reported at 0900 GMT, the UK at 0930 GMT and the US at 1445 GMT and 1500 GMT.

[master rsi] 01/3/2024 09:10

FTSE

Well up with 56 points

[sunshine today] 01/3/2024 08:43

OPTI 28P mid ups please .

About to sign some big deals as per last RNS

[master rsi] 29/2/2024 23:44

UPS

RGL 21.65p ( 21.60 v 21.7p ) UT 21.45

A good announcement of maintaining the dividend at 1.20p for the last Q despite large debt, but the company has assets for disposal are in solicitors' hands.. "The value of the portfolio decreased by 5.9% on RNS 3 weeks ago has high-quality tenant base. The ongoing asset disposal programme continues to achieve the latest valuations."
--------------- Intraday ----------------------------------- 2 months --------------------------------------- 1 year ---------------
INDICATORS

[master rsi] 29/2/2024 23:15

DOW

Finished 47 points higher.....

US stocks turned in modest gains on Thursday after a closely watched gauge of inflation showed that price pressures had continued to ease last month, reigniting hopes of a rate cut in the first half of the year.

At close, the Dow Jones was 47.37 points higher, up 0.12% at 38,996.39,
while the S&P 500 advanced 0.52% to 5,096.27
and the Nasdaq Composite saw out the session 0.90% firmer at 16,091.92.

According to the Department of Commerce, the so-called price deflator for personal consumption expenditures rose by 2.4% year-on-year in January, in line with forecasts and following a 2.6% annual increase in December. Meanwhile, the core rate eased to 2.8% from 2.9%, matching economists' expectations.

[master rsi] 29/2/2024 23:08

Next month UPS for MARCH Click ....

....

[master rsi] 29/2/2024 22:51

Best performing shares ( UPS ) during February


Share
Mid
Highest
% Change
Rank


HE1
1.325
3.125
135.855
1


HEMO
3.35
6.30
88.06
2


QBT
1.125
1.50
33.33
3


ARB
17.25
22.25
28.99
4


BOOM
247.50
272.00
9.90
5


RGL
23.175
25.35
9.39
6


OPTI
25.00
27.25
9.00
7


GGP
7.60
7.95
4.61
8


EEE
10.65
10.75
0.94
9

[master rsi] 29/2/2024 22:28

DOW

Finished 47 points higher..

US stocks turned in modest gains on Thursday after a closely watched gauge of inflation showed that price pressures had continued to ease last month, reigniting hopes of a rate cut in the first half of the year.

At the close, the Dow Jones Industrial Average was 47.37 points higher, up 0.12% at 38,996.39,
while the S&P 500 advanced 0.52% to 5,096.27
and the Nasdaq Composite saw out the session 0.90% firmer at 16,091.92.

[master rsi] 29/2/2024 16:51

Commodities

Gold on the UP is now $2,046+$11 high Silver is trying to follow

Intraday ---- Gold -------------- Silver ---------------- Copper -----


1 month ----- Gold ---------------- Silver --------------- Copper -----

[master rsi] 29/2/2024 16:29

How the UPS are performing during last month

[master rsi] 29/2/2024 16:14

How the UPS are performing today

[master rsi] 29/2/2024 16:00

Mortgages and consumer credit grow but recent mortgage rate hikes cloud picture v
Proactive Investors - Improving Bank of England lending and credit data may strengthen the central bank's feeling that the UK's recession is already over, though actions by lenders in recent weeks have muddied the picture.

Data from Zoopla also out today suggested residential housing demand this month rose 11% year-on-year, while the number of sales agreed has increased 15% across the UK.

With both buyers and sellers attracted back into the property market in February, it forecast a 10% boost in the number of home sales for the year.

The BoE figures showed net mortgage approvals for house purchases rose to 55,200 in January from 51,500 in December, while net remortgage approvals remained pretty much unmoved at 30,900 and individuals repaid a net £1.1 billion of mortgage debt on top of £0.9 billion in December.

The ‘effective’ interest rate, meaning the actual interest paid by homeowners, on newly drawn mortgages fell by 9 basis points, to 5.19% in January. The rate on the outstanding stock of mortgages increased by 5 basis points, from 3.36% in December to 3.41% in January.

Net consumer credit borrowing rose to £1.9 billion in January, from £1.3 billion in December, mainly driven by higher borrowing through credit cards, with other forms of consumer credit such as car finance and personal loans increasing slightly to £1 billion from £0.9 billion.

Household cash deposits in bank accounts rose £6.8 billion – up for the second month in a row and the largest monthly increase since September 2022.

Total liquid assets held by households, including deposits with banks, building societies and in National Savings and Investment accounts, increased £6 billion, the same as in December, but above the £4.8 billion average increase in the two years prior to the pandemic.

Consumer expected to spend more this year

"Households have started this year better than they ended 2023, with reviving consumer credit flows supporting January’s rebound in retail sales," said economist Samuel Tombs at Pantheon Macroeconomics. "That said, consumers continue to manage their finances cautiously."

With mortgage repayments continuing to exceed lending, he noted that households continue to trim their other borrowing.

"The outlook for consumers, however, continues to brighten," he said, adding that the jump in the number of mortgage approvals for house purchases leading to an increase in borrowing flows in two-to-three months when those people move house.

"More broadly, we think households will be willing to spend more this year."

Ashley Webb at Capital Economics said the increase in consumer credit was stronger than expected, probably reflecting recent volatility in retail sales rather than an improvement in underlying demand for unsecured borrowing.

He said: "Overall, real GDP may still contract in Q1 but the signs of life in the housing market suggest that the 'recession' will be over soon, if it’s not already."

Alice Haine, analyst at Bestinvest, noted that the rise in UK mortgage approvals – an indicator of future borrowing – was the fourth consecutive month.

"While borrowing costs remain high, with interest rates still on pause at a 16-year peak of 5.25%, signs of a slightly improving outlook for borrowers can be found in the effective rate on newly drawn mortgages, which dropped for the second consecutive month, falling 9 basis points to 5.19%," she said.

But Emma Cox, managing director of real estate at lender Shawbrook, noted mortgage rates "are beginning to creep back up and cuts to interest rates may not materialise as soon as previously predicted".

This week, Nationwide, Britain’s largest building society, was the latest to raise its mortgage rates, following a double move from Coventry Building Society.

[master rsi] 29/2/2024 15:42

FTSE 250 movers:
FTSE 250 (MCX) 19,139.10 0.66%

Power generation company Drax posted a surge in full-year profits on Thursday and lifted its dividend, as Britons struggled to pay their energy bills.

In the year to the end of December 2023, pre-tax profit jumped to £796m from £78m a year earlier, while adjusted earnings before interest, tax, depreciation and amortisation rose 66% to £1.2bn.

Drax proposed a final dividend of 13.9p a share, up 10% on the year.

The company said its full-year 2024 expectations for adjusted EBITDA are in line with analysts' consensus estimates of £882m to £1.1bn.

Chief executive Will Gardiner said: "Drax performed strongly in 2023 and we remained the single largest provider of renewable power by output in the UK. We have created a business which plays an essential role in supporting energy security, providing dispatchable, renewable power for millions of homes and businesses, particularly during periods of peak demand when there is low wind and solar power.

"Policy support for our UK BECCS project continues to progress and we remain in formal discussions with the UK Government to ensure Drax Power Station can play a long-term role in UK energy security, creating thousands of jobs during construction and helping the country reach Net Zero.

"We have made further progress in our ambition to be a world leader in carbon removals and have visibility of high-quality, long-term earnings to 2042 and a strong balance sheet which supports returns to shareholders and investment in growth, both in the UK and internationally."

Profits at Howden Joinery fell more than expected last year as a weaker DIY and housing market hit the bottom line.

The company on Thursday reported pre-tax profit for the year to December 30 of £327.6m, down 19%.

"While we are cautious about the macro-economic and geo-political environment, given the encouraging start to the year and the agility of our business model, the board is confident in the outlook for 2024," said chief executive Andrew Livingston.

UK depot revenue fell 0.7% to £2.24bn and the full-year dividend was lifted 1.9% to 21p a share.

"We anticipate that market conditions in 2024 will be broadly unchanged and we are well prepared for the challenges and opportunities that this may present," the company said.

"We aim to maintain a profitable balance between margin and volume and we have aligned our operating costs to expected market conditions. We will work with our suppliers to keep product and input costs well controlled."

Howden added that it planned to open 30 new UK depots this year.

Government contractor Serco said it expected slightly lower revenues this year and a 5% rise in profit as 2023 earnings rose 25%.

The company which runs immigrant detention centres in the UK, said operating profit for the year to December 31 came in at £272m.

It now expects revenue this year to be £4.8bn, compared with the £4.9bn reported in 2023.

"Revenue is expected to be lower organically due to our CMS contract now being in its new five-year agreement, the annualisation of our previously announced exit from certain low-margin contracts, and contract mix change in immigration, as we support the UK government's efforts to reduce the number of asylum seekers being accommodated in hotels," Serco said on Thursday.

Underlying operating profit is expected to grow by around 5% to £260m, driven by new contracts ramping up, operational efficiency improvements across the existing portfolio and a contribution from acquisitions, Serco added.

Precision instrumentation and controls company Spectris reported record adjusted profits for 2023 on the back of double-digit sales growth and improving margins, though sales came in slightly below forecasts.

Reported pre-tax profit for the full year totalled £263.6m, up 20% on 2022, helped by a 130 basis-point increase in the operating margin to 18.1%.

Adjusted operating profits were up 18% over the year at an all-time high of £262.5m.

Sales were up 9% over the year at £1.45bn, short of the company-compiled consensus forecast of £1.47bn.

Full-year like-for-like sales increased by 10% as strong double-digit growth in the electronics and semiconductor, materials and academic research offset a 9% drop in life sciences and pharmaceuticals, its biggest division.

"The combination of the improved quality of the group, our strong self-help story and the significant opportunities that lie ahead gives me great confidence in our future prospects, with the delivery of further margin expansion in 2024 providing another step towards margins in excess of 20%," said chief executive Andrew Heath.

The company said progress in 2024 was expected to be weighted towards the second half due to the strong performance in the first half of 2023 and an improving outlook in a number of key end markets.

Commenting on the results, analysts at Shore Capital said they were placing their 'buy' recommendation on Spectris under review, "noting the uncertain short-term outlook and the lack of a clear catalyst" following the completion of the company's portfolio rationalisation with the sale of the Red Lion Controls business in December.

The broker said the stock's valuation was "now appearing to be relatively full".

Aston Martin gave up gains made on Wednesday after it narrowed losses on the back of higher prices for its expensive cars.

Ashmore, Diversified Energy, Genus, Hargreaves Lansdown, Hays, HICL Infrastructure and Plus500 were all down on going ex-dividend.

Market Movers

FTSE 250 - Risers

Drax Group (DRX) 467.80p 11.67%

Howden Joinery Group (HWDN) 837.60p 8.41%

Energean (ENOG) 1,043.00p 6.48%

Serco Group (SRP) 188.30p 5.08%

Elementis (ELM) 143.40p 4.82%

PZ Cussons (PZC) 102.80p 3.84%

Man Group (EMG) 249.70p 3.52%

Ferrexpo (FXPO) 74.50p 3.19%

W.A.G Payment Solutions (WPS) 73.00p 2.82%

Primary Health Properties (PHP) 90.95p 2.77%

FTSE 250 - Fallers

Aston Martin Lagonda Global Holdings (AML) 171.90p -6.32%

Diversified Energy Company (DEC) 933.00p -5.18%

Spire Healthcare Group (SPI) 226.50p -4.23%

Plus500 Ltd (DI) (PLUS) 1,735.00p -4.04%

Hargreaves Lansdown (HL.) 729.20p -3.52%

Spectris (SXS) 3,508.00p -2.77%

Tullow Oil (TLW) 28.50p -2.06%

Dr. Martens (DOCS) 94.25p -1.82%

C&C Group (CDI) (CCR) 143.20p -1.51%

Wetherspoon (J.D.) (JDW) 763.50p -1.29%

[master rsi] 29/2/2024 15:16

CRN 124.4p0 (-3.20 / -2.51%%) / Cairn Homes profit grows on back of jumping house prices; demand high
(Alliance News) - Cairn Homes PLC on Thursday proposed a higher dividend as it reported sound profit growth as demand for new housing in Ireland remains high.

The Dublin-based housebuilder said pretax profit rose 6.4% to EUR99.4 million in 2023, from EUR93.5 million a year prior.

Revenue climbed 8.0% to EUR666.8 million from EUR617.4 million. The average selling price jumped 7.9% to EUR383,000 as at Wednesday from EUR355,000 at March 1, 2023.

The company emphasised that the construction of homes for first time buyers is a core market, citing a delivery of over 500 new starter homes at an average market price of under EUR400,000 last year.

Cairn Homes said that "there is a supportive macroeconomic backdrop with strong exchequer surpluses, falling inflation, record and near full employment, strong consumer spending and a growing population," despite noting the current interest rate environment.

Return on equity edged up to 11.3% in 2023 from 10.8% in 2022.

Cost of sales increased 7.5% to EUR519.2 million from EUR483.1 million.

Cairn proposed a final dividend of 3.2 euro cents per share, bringing the total to 6.3c, up 3.3% from 6.1c in 2022.

The company indicated a busy year ahead, with a closed and forward sale order book of 2,473 units as at Wednesday, up 65% from 1,503 at March 1 last year. The closed and forward sale order book value jumped 77% to EUR946 million from EUR534 million over the same period.

Looking ahead with confidence, the company said: "Ireland entered 2024 with one of the strongest performing economies in the EU."

It added: "There continues to be a significant structural demand for new homes and despite the delivery of 32,695 new home completions in 2023, the highest since 2008, the [Irish] Housing Commission estimates that around 42,000 – 62,000 new home completions are required per annum."

In Dublin, its shares fell 3.0% to EUR1.45 each.

[master rsi] 29/2/2024 14:48

DOW

On the up with 77 points

[master rsi] 29/2/2024 14:23

CleanTech Lithium to publish Laguna Verde PFS in 3rd quarter

CleanTech Lithium PLC - Chile-focused lithium exploration and development company - Expects to publish its pre-feasibility study for the Laguna Verde project in the third quarter of 2024. Says that the current drilling programme at Laguna Verde is designed to produce the first JORC compliant reserve estimate for the project. The drilling programme will also produce a hydrogeological model to design the extraction and reinjection wells to maximise the recovery of the lithium resource, it adds.

Chief Executive Officer Aldo Boitano says: "The [PFS] for the Laguna Verde project will be a significant milestone on our path to lithium production. It is the company's aim to produce the highest quality PFS to ensure the strongest possible platform for discussions with strategic partners."

Current stock price: 16.00 pence, up 4.5%