Gold Miners Shine as Tech Sector Secures Major Contracts: Pre-Market Update

📈 Today's Key Themes

The pre-market landscape presents a mixed picture, with gold mining companies reporting stellar results while the technology sector secures significant contracts. Caledonia Mining (#CMCL) and AltynGold (#ALTN) have posted impressive financial performances, buoyed by higher gold production and prices. In contrast, the tech sector sees major wins with ITM Power (#ITM) selected for a large-scale Asia Pacific project and CyanConnode (#CYAN) awarded a £70 million smart meter contract. However, challenges persist in other sectors, with Victrex (#VCT) reporting mixed results in specialty chemicals and Tan Delta Systems (#TAND) facing revenue declines in oil services.

💡 Company Updates

Annual Results

Tan Delta Systems (#TAND) reported concerning full-year results for the 12 months ended 31 December 2024. Revenue declined by 16% to £1.22m, while losses widened to £1.17m before tax. Despite a growing pipeline of £35m, the company is struggling with extended trial-to-conversion cycles, indicating challenges in translating opportunities into revenue. The cash position has deteriorated to £3.08m from £4.55m, suggesting a worrying cash burn rate. While gross margin saw a slight improvement to 62.1%, it's overshadowed by the overall financial decline.

Half-Year Results

Victrex (#VCT) announced mixed H1 results for 2025, with revenue up 5% to £145.9m but underlying profit before tax down 17% to £23.2m. The company faced headwinds from FX challenges, operational issues in China, and weakness in the Medical segment. Volume growth of 16% was driven by Sustainable Solutions, but gross margin declined to 44.1% from 48.0%. Net debt increased to £40.7m from £21.1m at the end of FY 2024. The outlook remains cautious, with these factors expected to constrain PBT growth in H2.

Q1 Updates

Caledonia Mining Corporation (#CMCL) reported exceptional Q1 2025 results, with a 46% increase in revenue and a 95% jump in gross profit. Gold production at Blanket Mine and Bilboes oxides mine increased 9.3% to 19,106 ounces. Gross profit nearly doubled to $26.9 million, while EBITDA surged 148% to $22.6 million. Net profit attributable to shareholders rose an impressive 493% to $8.9 million, with adjusted EPS up 503% to 58.5 cents. The company's operational resilience and ability to capitalize on favorable gold prices have driven this strong performance. AltynGold (#ALTN) delivered strong Q1 2025 results, reporting a 61% year-on-year increase in revenues to $25.3m. Gold production rose 51% to 11,175 ounces, driven by a 34% increase in mined ore and a 57% rise in milled ore. The company maintained a stable grade and achieved a higher recovery rate of 84.9%. AltynGold remains on track to deliver its full-year production target of over 50,000 ounces, indicating positive momentum for the year ahead. PetroTal Corp. (#PTAL) announced record quarterly production of 23,281 bopd for Q1 2025, alongside strong financial results. Adjusted EBITDA reached $71.9 million, up significantly year-over-year, while net income stood at $30.9 million. The company also arranged a $65 million syndicated term loan facility for an erosion control project. However, PetroTal is monitoring the impact of lower oil prices and is prepared to adjust capital expenditures if necessary.

🎯 Leading Developments

Major Contract Wins in Green Energy and Smart Technology

ITM Power (#ITM) has been selected as the supplier for over 300MW of electrolysers for a green hydrogen project in the Asia-Pacific region. This contract win represents a significant opportunity for ITM Power, as the project has received funding approval from local authorities. While the final investment decision is still pending, the scale of the project suggests it could have a meaningful positive impact on ITM Power's revenue and growth prospects. CyanConnode Holdings (#CYAN) has been awarded a major contract worth approximately £70 million to deploy 750,000 smart meters in India. The contract, awarded by the Government of Goa's Electricity Department, represents a significant revenue opportunity for CyanConnode, worth over 2.5 times the company's current market cap. The formal Letter of Award suggests the funding is likely to be provided, reducing the execution risk.

FDA Clearance for Medical Device

Tristel (#TSTL) has received FDA clearance for Tristel OPH, a high-level disinfectant for ophthalmic medical devices. This clearance has the potential to transform ophthalmic disinfection practices in North America, offering a fast, safe, and practical alternative to outdated and hazardous disinfection methods. Tristel has already established local US manufacturing and received interest from leading eye institutes, positioning the company for significant growth in the North American market.

Strategic Acquisition in Financial Advisory

FRP Advisory Group (#FRP) has acquired One Advisory Group for £8.1 million, expanding its service offering and geographic reach. One Advisory is a financial reporting and transaction advisory firm based in London. The acquisition is expected to contribute revenue of approximately £4.9 million and adjusted EBITDA of around £1.1 million on an annual basis. This strategic move will broaden FRP's transactional service offering and add new governance advisory capabilities.

📅 Week Ahead

13 May 2025: Bytes Technology Group plc (#BYIT) Full Year Results Announcement
13 May 2025: Coca-Cola Europacific Partners PLC (#CCEP) Capital markets event
13 May 2025: XPS Pensions Group plc (#XPS) Capital Markets Event
14 May 2025: Experian plc (#EXPN) to release full year results
14 May 2025: Burberry Group plc (#BRBY) Preliminary Results for the 52 weeks ending 29 March 2025
14 May 2025: Compass Group PLC (#CPG) Half-year results
15 May 2025: Legal & General Group Plc (#LGEN) Q1 2025 Trading Update
15 May 2025: United Utilities Group PLC (#UU.) Announcement of full year results for the year ending 31 March 2025
15 May 2025: Eutelsat Group (#ETL) Third quarter and nine month 2024-25 revenues release
15 May 2025: Grainger plc (#GRI) to announce half-year results
16 May 2025: Land Securities Group Plc (#LAND) Landsec full year results announcement
16 May 2025: Future plc (#FUTR) Half-year Results Release

View full calendar

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