Update

Trans-Siberian Gold (TSG) announced yesterday that it participated in an auction on 28 March 2019 for the exploration and development licence over the Rodnikova deposit in Kamchatka, located 50km from the TSG’s operating Asacha Gold Mine. The Rodnikova deposit is a high-grade gold-silver vein and is one of the largest gold fields in South Kamchatka. TSG’s wholly owned subsidiary, ZAO Trevozhnoe Zarevo, submitted the highest bid with a total amount of $3m of which $2.7m has been pre-paid.

It is anticipated that the Federal Agency for Subsoil Use (“Rosnedra”) will confirm the award of the licence shortly and that the licence for the Rodnikova deposit will be issued within the next month. Subject to the award of the licence, TSG will have the exclusive right to conduct exploration and development work over an area of 22km² for a period of 20 years. The market welcomed this news and the shares gapped higher at yesterday’s open. A break of the 2016 highs now looks very much on the cards.

D4T4 Solutions (D4T4) has had a volatile week after news broke on Tuesday that CFO Carmel Warren plans to leave company. Whilst the shares initially spiked lower, prices have been quick to recover and we believe this underlines the strength of the stock.

Codemasters (CDM) released a trading update on Monday and as anticipated, the numbers didn’t disappoint… Trading through the second half of the year continued to be strong and management expect to report full-year 2019 revenues of £71m, earnings of £18.5m and gross cash of £18.4m. These market-beating numbers follow Codemaster’s joint venture with Chinese gaming giant Netease and the successful launch of DiRT Rally 2.0.

The shares have enjoyed a strong run higher in recent weeks and we’re very nicely up on our position. With this bullish trading update now fully price-in we may see a short-term pullback in price.