The following stocks are the leading risers and fallers on AIM in London on Thursday.
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AIM - WINNERS
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Kodal Minerals PLC, up 38% at 0.33 pence, 12-month range 0.20p - 0.45p. The West Africa-focused mineral exploration and development firm agrees a conditional funding package of $117.8 million. The package will provide full financing for the development and commencement of production at the Bougouni lithium project in Mali and support a major exploration and development programme. The package has been agreed with Hainan Mining Co Ltd, a subsidiary of Xinmao Investment Co Ltd. Chief Executive Bernard Aylward says: ‘The level of funding will allow us to fully fund the dense media separation plant with mining planned to commence at the high grade Ngoualana deposit as well as to support major drilling and exploration campaigns to discover and define additional lithium mineralisation to seek to increase the life of the mining operation at Bougouni.’
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Gensource Potash Corp, 14% at 16.00 pence, 12-month range 10.00p - 28.00p. Revises the previously proposed ownership structure of KClean Potash Corp, the entity created to own and operate the Tugaske potash project. Currently, KClean is 100% owned by Gensource. Says the proposed 33% ownership offer by Helm AG for KClean resulted in a ‘unappealing risk-return ratio for new investors’. As a result, Helm has withdraw is 33% ownership offer. Gensource says it continues to progress its short-term financing and anticipates it will advance advance the near-complete bridge engineering work for the Tugaske project, which is in Saskatchewan, Canada. Helm remains committed to be the buyer of all of the granular fertilizer produced at Tugaske.
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AIM - LOSERS
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Scotgold Resources Ltd, down 15% at 46.22 pence, 12-month range 46.11p - 88.00p. The gold producer says that, as a result of lower-than-expected fourth-quarter gold production and sales, its financial and working capital position has been damaged. Says it is now working on additional funding to support delivery of its 2023 mine plan. Chief Executive Phil Days says December was ‘by far’ the company’s most challenging period in terms of underground mine development. Reports gold production, as concentrate and dore, at 1,805 ounces in the final quarter of 2022. Adds that an additional 324 ounces were mined in December but had to be stored underground as weather conditions didn’t allow for mining trucks to move the ore safely. Production in 2022 as a whole totals 8,564 ounces, up sharply from 2,623 ounces. Gold concentrate shipments total 1,078 tonnes in 2022, with a sales value of £11.9 million. Production guidance for 2023 is set at between 11,500 ounces to 13,500 ounces.
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Gear4Music PLC, down 13% at 120.25 pence, 12-month range 90.00p - 700.00p. Musical equipment and musical instrument retailer reports the three months ended December 31, its peak seasonal trading period, was in line with expectations. Gear4music believes that current consensus market expectations for the financial year ending March 31 are for revenue of £155.1 million, earnings before interest, tax, depreciation and amortisation of £8.9 million, and pretax profit of £1.0 million. Explains UK revenue during December was hurt by Royal Mail strikes and knock-on disruption of other couriers. UK revenue totals £26.0 million in the quarter, unchanged from the previous year. Total revenue, meanwhile, rises by 5% to £49.5 million from £47.2 million. Chief Executive Andrew Wass adds: ‘A continuing targeted reduction of both on-hand inventory and net debt, combined with a period of weaker consumer sentiment and lower own-brand sales led to subdued gross margins, although tight control over marketing and labour costs largely compensated for this and we expect margins to recover during FY24.’
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