THEME: EXPLORATION
Near-term production play Firestone is concentrating its resources on the BK11 kimberlite project in the highly prospective Orapa region of Botswana. It raised £9.5m cash last month in order to press ahead with first output this quarter.
A play on the wider African resources industry, the mining engineer did struggle last year thanks to a slowdown in projects, but this has changed into 2010. Former chief executive Grant Lowman has been replaced, with Martin Smith filling the leadership void, while $13m cash on the balance sheet leaves the company well placed to exploit higher commodity prices.
A junior exploration partner of BHP Billiton in the south and east Falkland basins, its shares have bounced all over the place, first slumping after Desire Petroleum's Liz well proved disappointing, and more recently soaring, thanks to Rockhopper's successful strike. The three are all due a turn with the Ocean Guardian Deepwater rig, and FOGL should be up next with its Toroa well.
Faroe is raising £70m through a rights issue to accelerate its exploration programme in the UK and Norway, and to expand operations into Greenland. It is also about to start a busy drilling campaign across many of its best discovery prospects, while also applying for new UK licences, while the new cash will provide resources to expand the exploration pipeline.
THEME: TECHNOLOGY
The mobile banking software specialist could be on to a significant winner if we really are on the cusp of a mobile banking revolution, thanks to the explosion of clever and quick smartphones. Already the lead mobile banking and payments supplier, in March it revealed that UK and US registered users topped 2m thanks to a boom in smartphone apps, so, while profits are unlikely until 2012, Monitise has the look of a long-term winner.
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THEME: GREEN POWER
The US-based firm has been handed a lot of support from the US Navy in its bid to develop buoys that ride waves and convert the natural energy into electricity. It's a booming market as both China and the West race to find the best ways to slash carbon emissions while still powering cities and industries. But it could be a long and winding road before anything like profits are on the board.
Formerly oil and gas firm Ramco Energy, SeaEnergy has cleverly turned itself into one of the junior market’s most exciting sustainable energy plays. It owns a 25 per stake in an offshore Scotland wind power project. Government has earmarked £100bn to create 25GW of wind power installations around the UK, which would supply 25 per cent of Britain’s electricity needs, although construction is unlikely until 2014.
THEME: BIOTECH
Asterand is a supplier of human tissue to big pharma firms for pre-clinical tests. It's a fragmented market with the main competition coming from academic institutions who struggle to match it on quality and service. Cutbacks on R&D have created short-term headwinds, but the long-term prospects for such specialised outsourcing remain attractive.
Company statistics at a glance
| Company | EPIC | Share price (p) | Market value (£m) | 12-month high (p) | 12-month low (p) |
|---|---|---|---|---|---|
| Firestone Diamonds | FDI | 39.5 | 50.5 | 49.5 | 21.5 |
| MDM Engineering | MDM | 175 | 65.2 | 185 | 85.5 |
| Falkland Oil & Gas | FOGL | 177 | 258.9 | 182.25 | 77.5 |
| Faroe Petroleum | FPM | 107 | 56.7 | 140 | 57 |
| Monitise | MONI | 20.25 | 108.7 | 21.75 | 5 |
| Ocean Power Tech. | OPT | 432.5 | 44 | 600 | 240 |
| SeaEnergy | SEA | 38.25 | 26.4 | 86.5 | 36 |
| Asterand | ATD | 16.5 | 19.2 | 29 | 13 |
