Mining Sector Shines Amidst Mixed Pre-Market Results

📈 Today's Key Themes

Pre-market announcements reveal a divergence in sector performance, with mining companies leading the pack. Atalaya Mining (#ATYM) and Serabi Gold (#SRB) reported strong results, showcasing the resilience of the mining sector. However, construction and shipping industries face headwinds, as evidenced by challenging updates from Watkin Jones (#WJG) and Braemar (#BMS). This mixed bag of results reflects broader economic uncertainties and inflationary pressures affecting various sectors differently.

💡 Company Updates

Annual Results

Atalaya Mining (#ATYM) reported its best quarterly EBITDA performance on record, with a €52.5 million EBITDA for Q1 2025. The company's copper production reached 14.3 kt, the best quarter since Q2 2021. With a strong balance sheet showing a net cash position of €38.1 million, Atalaya Mining's results highlight the firm's operational strength and favorable market conditions. Braemar (#BMS) faced challenges in FY25, reporting a 7% revenue decline to £141.9m and a shift to a net debt position of £2.5m. The company's underlying operating profit fell by 6% to £15.6m, reflecting difficult market conditions in the shipping industry. Braemar's cautious outlook for FY26, with underlying operating profit guidance of £13m to £14m, suggests ongoing headwinds. Capital Gearing Trust (#CGT) delivered a resilient performance with a 4.1% NAV total return, outpacing inflation at 2.6%. The trust increased its dividend by 30.8% to 102p per share and strengthened its cash position to £42.9m. However, the cautious stance on equities and focus on high-quality bonds indicate a defensive strategy in the face of market uncertainties.

Q1 Updates

Serabi Gold (#SRB) reported a strong start to 2025, with gold production increasing 11% year-on-year to 10,013 ounces. The company's EBITDA for the quarter rose significantly to $12.4 million, up from $4.7 million in Q1 2024. With a healthy cash balance of $26.5 million, Serabi Gold is well-positioned for continued growth. In contrast, Galantas Gold (#GAL) faced ongoing challenges, reporting no revenue growth and a net loss of $1.225 million for the quarter. The company's cash balance declined to $729,387, and its working capital deficit increased to $17.275 million, indicating potential liquidity concerns.

Half-Year Results

Watkin Jones (#WJG) reported a sharp decline in profits, with operating profit falling to £0.4m from £4.0m in HY24. Revenue decreased to £129.2m from £175.1m, reflecting challenging market conditions in the property development sector. Despite these headwinds, the company maintained a slight increase in gross margin to 11.1%. CT UK Capital And Income Investment Trust (#CTUK) underperformed its benchmark with a NAV total return of -1.6% compared to the benchmark's 4.1%. However, the trust maintained dividend growth, increasing its dividend by 3.5% to 5.90p per share. The trust's performance reflects the challenges faced by UK equities, particularly in the medium and smaller-sized companies segment.

🎯 Leading Developments

Cohort (#CHRT) reported strong growth in revenue and profits for 2024/25, in line with market expectations. The technology group maintained a robust balance sheet with a record closing order book of c.£615m. This performance underscores the resilience of the defence and security sectors amid broader economic uncertainties. Cykel AI Development (#CYK) secured an enterprise-level commercial agreement with Transpharmation, a global pharmaceutical research leader. This strategic partnership opens a new revenue stream for Cykel in the high-growth pharmaceutical research sector, potentially transforming the company's market position. Filtronic (#FTC) won a new contract worth £4.2 million with defence prime Leonardo to supply high-performance modules for an airborne radar application. This contract win represents a significant development for Filtronic, expanding its product offering in the defence sector and providing clear revenue visibility for the next two financial years. Capital Metals (#CMET) secured a strategic investment of up to $4 million from Ambeon Capital PLC, a Sri Lankan conglomerate, along with an MoU for project development and funding. This partnership provides a clear funding path for the development of Capital Metals' Taprobane Minerals Project in Sri Lanka, potentially unlocking significant value in the country's mineral sands sector.

📅 Week Ahead

30 May 2025: Capital Gearing Trust (#CGT) Monthly Factsheet Publication
30 May 2025: JPMorgan Asia Growth & Income (#JAGI) Half-year results announcement
30 May 2025: EnSilica (#ENSI) Financial Year End 2025
30 May 2025: Fresnillo (#FRES) Payment date for final ordinary dividend and special dividend
30 May 2025: Unite Group (#UTG) Final dividend payment

View full calendar

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