3 UK stocks worth a closer look, Alien metals, CyanConnode and Saietta

3 companies with news recently are worth highlighing:

Alien Metals Ltd (LON:UFO) has announced that its wholly-owned subsidiary Iron Ore Company of Australia Pty Ltd (IOCA) has completed initial investigations into the potential for Direct Ship Ore at tenement E47/5001. Subject to securing funding, the low-cost, high-margin, projects could be generating revenues in the near term. Alien’s initial investigations show that the Mallina Tenement has:

Significant exploration and resource potential; historical rock chip samples from Mallina returned assays of over 60% iron – the grade required for DSO.

Similar geological characteristics to Hancock, including the projected continuations of the resource-bearing Ridge C, Ridge E, and Sirius Extension iron ore formations.

Observed continuation of the Ridge H iron ore formation that, when sampled in the Hancock Tenement, returned multiple rock chip samples grading over 60% iron.

Alien has made considerable progress as it advances plans to take Hancock into production, including the signing of a Memorandum of Understanding for iron ore bunker allocation at the port of Utah Point, and the signing of a mandate letter with Anglo American for the exclusive right to negotiate project funding and offtake arrangements.

CyanConnode Holdings (LON:CYAN) has announced another contract win for 300k modules. The contract demonstrates the company’s strong competitive position in the high potential Indian market and helps underpin broker forecasts for strong revenue growth over the next couple years.

The order increases CyanConnode’s order backlog to 2.6m (4.5m cumulative orders to date). The 300k modules for this project are expected to begin delivery during Q3 ending December 2023 and is expected to be completed within 27 months (Q4 ending March 2026).

CyanConnode is the largest and most experienced provider in India of RF Mesh Communication solutions for Advanced Metering Infrastructure (AMI). CyanConnode has been active in India since 2009 and executed the first Smart Metering project in 2014. CyanConnode has the largest installed base of meters (1.2m of 5.0m, 25% share) in India and has won 4.5 m units of the total awarded to communications providers.

Saietta (LON:SED) has announced the restructuring of its ConMet joint cooperation & development agreement (JCDA) announced in August 2022. This restructuring is in-line with the trading update from 7 March where the company highlighted its intent to review all key relationships.

The transactions will result in a payment of €3.3mn to Saietta from ConMet, plus licence payments from related future ConMet sales of up to €20mn, expected to begin in calendar 2025, as well as reduce Saietta’s cash burn. Last week, the company announced agreements for a third vehicle with a major Indian client, expected to result in more than 60,000 sales over 5 years, and this restructuring of the ConMet JCDA frees up substantial capital and execution capability to support that large near-term opportunity. We should expect further announcements on these Indian programs later this year, potentially ahead of the next scheduled results in mid-September.