Daily RNS Catalyst Report
Date: 14/07/2025
P1 Deep-Dive Analysis
Today's Catalyst Summary
Bullish Catalysts
Record quarterly production and strong cash flow.
Record quarterly revenue and maintained guidance.
Significant new contract wins and strong trading update.
Improved margins and profitability in FY results.
Modest ARR growth and improved EBITDA from cost savings.
Solid Q2 production and continued shareholder returns.
Successful drilling expands potential of helium asset.
Strong trading update with record revenue growth.
New long-term strategic partnership with NatWest.
Bearish Catalysts
Major cost overrun on key drilling project.
Neutral Catalysts
Positive update on growing clinical adoption of Steriwave.
P1 Deep-Dive Analysis
Serabi Gold
SRBRecord quarterly gold production, robust cash growth, and highly encouraging exploration results firmly position Serabi for a strong second half, tracking well against annual guidance.
Four Pillar Analysis
The company is fully exposed to a strong prevailing gold price, which, combined with record production, has led to significant cash growth. Cash reserves increased from $26.5M in Q1 to $30.4M at the end of Q2, strengthening the balance sheet.
Operationally, Serabi is firing on all cylinders. Q2 production was the highest since 2013, driven by a 10% increase in development rates and, crucially, significant grade improvements at both the Palito and Coringa sites. Year-to-date mined grades at Palito are up 27% on the 2024 average. The company is on track to meet its 2025 guidance of 44,000-47,000 ounces, with production weighted to Q3 and Q4.
The key forward-looking element is the brownfield exploration program. With 30,000 meters of drilling planned this year, initial results from Palito, Coringa, and São Domingos have been highly encouraging, with multiple high-grade intercepts. This program is central to the company's growth strategy of increasing its mineral resource inventory towards 1.5-2.0Moz.
With a market cap of ~£137.5M and a forward P/E of just 3.6, the company presents a compelling value case, especially given its operational performance and growth profile. The stock is technically strong, sitting 38% above its 200-day moving average, yet the RSI of 62.8 is not yet in overbought territory, suggesting further upside potential.
RunProfits Insight
The catalyst is a stellar operational update that confirms Serabi is not just meeting but exceeding expectations. The combination of record production (10,532 oz in Q2) and a significant 27% grade improvement at the Palito complex provides tangible evidence of operational excellence. For a 'Speculative' stock with a low forward P/E of 3.6, delivering such strong results is a major de-risking event. The stock is already in a firm uptrend, well above its 200-day moving average, and this news provides fundamental justification for a continued re-rating as the market prices in higher, more reliable production and the significant potential from its exploration drilling.
Thor Explorations Ltd (DI)
THXA strong Q2 operational performance, marked by record quarterly revenue and maintained cost guidance, positions the company for a solid H2 while advancing a multi-front exploration strategy.
Four Pillar Analysis
Having unwound all gold hedges in the previous quarter, Thor fully benefited from high spot gold prices, leading to a record revenue of $82.5M. The company also reaffirmed its dividend policy, providing clear shareholder returns.
Segilola continues to be a reliable cash cow, with production tracking in line with guidance. The key strategic thrust is now exploration across its entire portfolio. Drilling is ongoing to extend Segilola's mine life, while significant programs in Senegal (Douta Project) and Côte d'Ivoire are advancing towards defining new resources and commencing maiden drilling, respectively. The completion of an 11,000-metre drill program at Douta's Baraka 3 prospect is a key milestone for the upcoming PFS.
The Environmental Impact Assessment for the Douta Mining License in Senegal has been pre-validated, a critical step towards de-risking the project and moving it towards a development decision.
The company is a 'Speculative' stock, being unprofitable on a forward P/E basis but with massive EPS growth forecast. This makes consistent operational delivery paramount. Maintaining production and AISC guidance is a significant positive. The stock is in a powerful uptrend, having risen 198% from its 250-day low and trading significantly above its 200-day moving average, indicating strong positive market sentiment.
RunProfits Insight
The core catalyst is a robust Q2 update confirming Thor is firing on all cylinders, converting strong operational performance into record revenue ($82.5M) thanks to high gold prices. For a 'Speculative' growth story, hitting production targets and maintaining cost guidance is crucial, and Thor has delivered. The stock has seen a massive 198% run-up from its lows, and this report provides the fundamental validation for that move. With exploration programs advancing across three countries and a dividend providing shareholder returns, this update solidifies the bull case and justifies the strong market sentiment.
Beeks Financial Cloud Group
BKSA powerful combination of record new contract wins and a strong trading update confirms accelerating sales momentum and underpins confidence in continued significant growth.
Four Pillar Analysis
The signing of ~$10M in Proximity Cloud contracts in a single month is a standout achievement and a significant acceleration in sales. These multi-year deals with brokerage and fintech firms across the UAE and Europe provide strong revenue visibility into FY26. This follows other major wins in the year with exchanges like BMV, ASX, and Kraken, confirming the appeal of Beeks' offerings to top-tier financial institutions.
The company continues to demonstrate its ability to convert its sales pipeline into major, long-term contracts across its entire product suite (Private, Proximity, and Exchange Cloud). While a minor deferral of £1.3m revenue from the BMV contract into FY26 was noted due to data centre constraints, the primary site is now live, and the overall growth story is firmly intact.
Not applicable to this announcement. The focus is purely on commercial and financial performance.
The key financial takeaway is the impressive growth trajectory. A 41% increase in underlying profit before tax to £5.5m on a 25% revenue rise indicates margin expansion and strong operational leverage. The company remains free cash flow positive with a healthy net cash position of £6.96m, even after significant investment in hardware. The forward P/E of 29.5 combined with 60% forecast EPS growth gives the stock a 'High Flyer' profile, where delivering on such growth is critical.
RunProfits Insight
The catalyst is a dual-shot of good news: a powerful trading update confirming 41% profit growth for FY25, and the announcement of a record $10M in new high-margin Proximity Cloud contracts signed in a single month. This validates the 'High Flyer' profile of the stock (fcPE 29.5, EPS growth 60%), as it proves Beeks can deliver the sales momentum required to justify its valuation. While the stock has been consolidating recently (-2.6% over 3 months), this news provides a clear fundamental reason for a breakout, demonstrating that the investment in infrastructure is translating into significant, long-term recurring revenue.
ECO Animal Health Group
EAHDespite challenging market conditions and a drop in revenue, ECO delivered improved margins and profitability through cost control, alongside positive progress in its key R&D pipeline.
Four Pillar Analysis
The company faced market headwinds, leading to a decline in Group sales to £79.6m. However, it saw strong revenue growth of 16% in the high-margin North American market. Post-year-end, revenue in the USA and China is outperforming budgets, and a strong recovery is noted in South East Asia, suggesting a positive start to the new financial year.
The key strategic focus is the R&D pipeline, which is seen as the engine for future growth. The company successfully submitted the regulatory dossier for its Mycoplasma poultry vaccine (ECOVAXXIN® MS) to the EMA. It anticipates up to 9 products receiving US and EU approval in the next 5-6 years, with multiple vaccine launches planned from 2026 onwards.
Regulatory progress is a critical value driver. The submission of the ECOVAXXIN® MS dossier to the European Medicines Agency is a major milestone. Further submissions are expected in the next 12 months, which will be key catalysts for the market to watch.
The financials reveal a story of resilience. The 33% increase in profit before tax to £4.0m and a 61% rise in EPS to 2.49p are standout metrics. The ability to increase gross margin to 45% through cost control and favourable geographic mix is a significant achievement in a tough market. The balance sheet is very strong, with net cash of £25.0m against a market cap of £40m, providing ample funding for the R&D pipeline.
RunProfits Insight
The headline catalyst is a resilient set of full-year results that prioritises profitability over top-line growth. The key achievement is the increase in profit before tax to £4.0m (+33%) despite lower revenues, demonstrating effective cost management. For this 'Value Trap' stock, proving it can enhance margins (up to 45%) and maintain a fortress balance sheet (£25m net cash) is crucial for shifting sentiment. While the stock is technically weak, trading below its 200-day average, these solid fundamentals and the tangible progress in the high-potential vaccine pipeline could provide the catalyst for a fundamental re-rating.
Pulsar Group
PULSInterim results show the company is making steady progress on its strategic objectives, with modest recurring revenue growth and improved profitability driven by a clear focus on cost discipline.
Four Pillar Analysis
The Group delivered ARR growth of £1.1m in the period on a constant currency basis, demonstrating continued commercial momentum. Revenue was largely flat at £30.1m, with 95% being recurring, providing good visibility. The company highlighted significant client wins, including a landmark group-wide partnership expansion.
The primary focus has been on operational efficiency and cost reduction. The company delivered £1.6m in annualised cost savings during the period and has actioned further significant savings for H2. This discipline is the main driver behind the improved Adjusted EBITDA of £3.6m. The company is also focused on leveraging generative AI to create new revenue streams and enhance its operating model.
Not applicable to this announcement.
The key story in the financials is the margin improvement. Despite flat revenue, Adjusted EBITDA increased to £3.6m. The board anticipates much improved cash generation in H2 as cost savings take full effect. Net debt stood at £4.2m at period end. The stock profile is a 'Value Trap' (fcPE 17.4, EPS growth 0%), so demonstrating a clear path to profitable growth and cash generation is essential to attract investors.
RunProfits Insight
The core catalyst in these interim results is the tangible proof of enhanced profitability through cost control. While revenue is flat, the increase in Adjusted EBITDA to £3.6m demonstrates that management's focus on efficiency is working. For a stock with a 'Value Trap' profile, this pivot towards sustainable margin expansion and the promise of improved cash generation in H2 is a significant positive signal. The stock has been trading flat, slightly below its 200-day average, and this solid, albeit not spectacular, report could provide the foundation for a gradual re-rating as the market gains confidence in the new, leaner operational model.
Petrotal Corporation
PTALA solid operational update showing continued strong production and a healthy cash position, allowing for sustained shareholder returns, though tempered by a delay in the new drilling program.
Four Pillar Analysis
The company continues its shareholder return program, having paid a regular quarterly dividend in June, bringing cumulative returns to $140 million. This is supported by a strong production base and a robust cash position, of which $99.3 million is unrestricted.
The Bretana field continues to produce near all-time highs. The operations team has successfully replaced three of four failed electric submersible pumps, restoring ~3,300 bopd of capacity. However, the planned Block 131 drilling program has been delayed due to issues commissioning a new rig. While the company states this is not expected to materially impact 2025 guidance, it is a minor operational setback.
The company is advancing its Erosion Control project as planned, with no changes to budget or timeline, indicating stable progress on key infrastructure projects.
The key financial metric is the strong cash balance of $142.1M. Despite drilling delays, YTD production is tracking guidance while capital expenditures are substantially below budget, which may lead to a stronger than expected free cash flow position. The stock presents as a 'Value Stock' with a low forward P/E of 5.1, and the consistent dividend reinforces this profile. The RSI of 60.2 suggests healthy momentum without being overbought.
RunProfits Insight
The primary catalyst is a solid operational update confirming strong production (~21k bopd) and a robust cash position ($142.1M), enabling continued shareholder returns via dividends. This consistency is exactly what investors in a 'Value Stock' with a low P/E of 5.1 want to see. Although the delay in the new drilling program is a minor negative, it's mitigated by capital expenditure being well below budget. The stock is technically strong, trading above its 200-day MA, and this report provides fundamental reassurance that the core Bretana asset is performing well, generating significant cash to underpin the investment case.
Jadestone Energy
JSEThe positive news of a larger-than-expected reservoir at the Skua-11ST well is significantly undermined by a major cost overrun, raising concerns about project execution and financial discipline.
Four Pillar Analysis
The well is expected to deliver initial production rates exceeding the previously guided 3,500 bbls/d, which will add meaningful volumes and reduce unit operating costs at the Montara field. However, the commercial benefit of this higher production is now offset by the sharply increased capital cost.
The drilling campaign has taken significantly longer than planned. The company attributes the cost increase to factors both outside its control (weather events, US$13-14M) and operational factors during drilling. While the CEO has stated that learnings will be integrated into future planning, this overrun raises questions about the company's ability to deliver complex projects on budget.
There are no specific regulatory issues highlighted in the release. The focus remains on the operational execution and bringing the well onstream safely in early August 2025.
The key financial metric is the capital cost blowout from $70M to ~$98M. For a company with a market cap of ~£110M, this is a material financial deviation. The market is likely to punish this lack of cost control severely, despite the better-than-expected reservoir size. The stock is unprofitable (speculative profile), and such execution missteps will erode investor confidence.
RunProfits Insight
The dominant catalyst here is the severe capital expenditure overrun on the Skua-11ST well, which has jumped by ~$28M, or 40%, in just two months. While Jadestone's reservoir find is larger than anticipated, the market will focus on the negative financial surprise and the breakdown in project discipline. For a 'Speculative' company, demonstrating an inability to control costs on a key project is a major red flag. Despite being technically oversold with an RSI of 43.5, this news provides a strong fundamental reason for further downside as the market questions future project economics and management's operational grip.
