QuotedData’s morning briefing 11 March 2022

In QuotedData’s morning briefing 11 March 2022:

  • CQS Natural Resources Growth and Income (CYN) has announced its interim results for the six months ended 31 December 2021. CYN’s chairman, Richard Prickett says that, during the period, commodity markets were strong and interestingly for the sector higher interest rate expectations are supporting a broad market rotation into value, which is supportive for mining and energy equity values, given their current strong free cash flow generation. CYN’s NAV total return for the period was +15.16%, which compares to a increase in the composite benchmark of 0.18%. CYN benefited from good asset allocation from its overweight positions in copper, shipping and lithium. On the individual stock positions, it saw excellent returns from Talon Metals, Sigma Lithium Resources, Foran Mining and NexGen. In comparison, CYN’s share price total return of -0.61% was more disappointing, with the discount to NAV widening from 3.5% at the end of June 2021 to 20.3% as at 31 December 2021. CYN’s board says that this is a major concern and they have been working with CYN’s advisors “to better promote the excellent returns we have seen over the last 18 months”.
  • Downing Renewables & Infrastructure (DORE) has appointed Winterflood Securities to act as its joint corporate broker and joint financial adviser alongside Singer Capital Markets Advisory with immediate effect.
  • Syncona (SYNC) has entered into a definitive agreement with Freeline Therapeutics Holdings Plc, alongside other existing shareholders, to purchase an aggregate of US$26.1 million of its American Depositary Shares (ADSs). Each ADS represents one ordinary share of the company and the purchases price is US$1.05 per ADS. Under the terms of the deal, Syncona has agreed to invest US$20.0m (£15.3m) in the offering, following which Syncona will retain its 55% stake (amounting to 37,862,147 ordinary shares) which was valued at £30.4m at close of business on 10 March 2022. Freeline plans to use the proceeds from this capital raising to fund the continued development of its product candidates and gene therapy platform and for other general corporate purposes. The offering is expected to close on or about 15 March 2022.
  • Jupiter Emerging & Frontier Income (JEFI) has announced that its general meeting on 10 March was opened and immediately adjourned indefinitely. JEFI’s board has also served protective notice of termination on the Company’s AIFM, Jupiter Unit Trust Managers Limited , in accordance with the investment management agreement between the two. This follows on from the company’s announcement on 8 March proposing a scheme of reconstruction – click here to read our coverage of that development.
  • Tufton Oceanic Assets (SHIP) has provided a brief update in response to potential general market concerns regarding the Russian invasion of Ukraine. SHIP says that that:
    • None of its vessels has in any way been impacted by these very sad events.
    • All of its vessels are operating in full compliance with applicable international sanctions.
    • All of its vessels are operating in accordance with their charters (all of which remain in full force and effect) and all of its charters give SHIP the right to prohibit its vessels from entering high-risk areas, which it will exercise as a matter of policy.
    • It has substantial charter coverage and, as shipping tends to perform well in periods of inflation, charter-free values are up year-to-date for its primary exposures of handy bulkers, handy product tankers and containerships.

We also have ScotGem’s annual results (further disappointing plus a surprise investment in Russia on 24 February 2022).

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