Author: Fiona Craig

Residential Secure Income plc (LSE:RESI) has taken another major step in its managed wind-down following the completion of the Retirement Disposal of its retirement housing portfolio. Through its subsidiary, ReSI Portfolio Holdings Limited, the company received consideration comprising £62.3 million in newly issued Living REIT plc shares and £45 million in cash. The 66,103,233 new Living REIT ordinary shares were admitted to trading on the London Stock Exchange’s Main Market on 16 July 2026.

The Living REIT shares will be distributed directly to eligible RESI shareholders through an in specie distribution. Shareholders on the register as of 22 July 2026 will receive approximately 0.3570 Living REIT shares for every RESI share held, with fractional entitlements rounded down. The cash proceeds are expected to be returned during the third quarter of 2026 through a bonus issue and redemption of B shares, subject to the company retaining sufficient funds to meet transaction costs, working capital requirements, tax obligations and expenses associated with its planned exit from the UK REIT regime.

The combination of share and cash distributions represents a key milestone in the company’s orderly wind-down strategy. Shareholders will receive immediate value through the planned capital return while retaining exposure to the retirement housing sector via their direct ownership of Living REIT shares.

The company’s financial outlook remains mixed. While leverage has been significantly reduced and recurring cash generation remains relatively strong, declining revenue, ongoing net losses and falling property valuations continue to present challenges. Technical indicators also remain weak, although the company’s dividend yield continues to provide some valuation support during the wind-down process.

More about Residential Secure Income

Residential Secure Income plc is a UK-listed real estate investment trust specialising in residential property, including retirement housing assets held through its subsidiary, ReSI Portfolio Holdings Limited. The company is implementing a managed wind-down strategy that includes asset disposals, capital returns and an orderly withdrawal from the UK REIT regime.

Living REIT plc, which forms part of the consideration for the Retirement Disposal, is listed in the closed-ended funds segment of the Official List and trades on the London Stock Exchange’s Main Market. The transaction allows RESI shareholders to maintain an investment in the retirement living sector while the company continues returning capital.

RESI has stated that future cash distributions under its planned B Share Scheme will depend on retaining adequate funds to cover outstanding liabilities, transaction expenses, working capital needs, property income distribution requirements and the costs of completing its exit from the UK REIT regime.

Oracle Power PLC (LSE:ORCP) has moved closer to the development of its Northern Zone Gold Project after advancing several key permitting and regulatory activities at its Kalgoorlie Gold Project in Western Australia. The company expects to submit both its Site Clearance and Native Vegetation Clearing Permit applications this month, supported by near-complete flora, vegetation and fauna assessments.

Work is also progressing on the Mine Development and Closure Proposal, with a heritage work area clearance survey now completed and technical studies covering hydrogeology, geotechnical conditions, geology and soils approaching their final reporting stage. Oracle Power said the coordinated progress across these workstreams brings the Northern Zone project closer to the start of mining operations and represents an important milestone in transitioning the asset from development planning towards production.

While operational progress continues, Oracle Power remains a pre-revenue business and continues to report losses as it invests in project development. Ongoing cash outflows and the likelihood of future funding requirements continue to weigh on the company’s financial outlook. Technical indicators remain broadly neutral, while valuation is constrained by negative earnings and the absence of a dividend.

More about Oracle Power PLC

Oracle Power PLC is an AIM-listed project developer focused on advancing natural resource projects, with a particular emphasis on gold assets in Western Australia. Its flagship Kalgoorlie Gold Project includes the Northern Zone Gold Project on mining lease M25/389, located close to the established Kalgoorlie mining district and its extensive infrastructure.

The company is working to move the Northern Zone project through the regulatory approval process and into the development phase. By completing permitting, environmental assessments and technical studies, Oracle Power aims to position the project for future production and strengthen its presence in Australia’s gold mining sector.

Sareum Holdings (LSE:SAR) has reached an important development milestone after completing dosing in the Phase 2-enabling toxicology programme for its lead drug candidate, SDC-1801. The selective oral TYK2/JAK1 inhibitor is being developed to treat autoimmune diseases, with psoriasis identified as the initial target indication. The company is now evaluating the toxicology results while continuing chemistry, manufacturing, controls and formulation activities. Sareum expects to complete the full Phase 2-enabling regulatory package during the fourth quarter of 2026 using its existing cash resources, paving the way for planned Phase 2 clinical studies and supporting the advancement of its broader pipeline in autoimmune and oncology therapies.

Despite this operational progress, Sareum remains in the clinical development stage and has yet to generate revenue. The business continues to report operating losses and cash outflows as it funds research and development, meaning future financing may be required. While technical indicators point to a positive share price trend, momentum appears elevated, suggesting the stock may be approaching overbought territory. Valuation also remains limited by negative earnings and the absence of dividend income.

More about Sareum Holdings

Sareum Holdings plc is a Cambridge-based clinical-stage biotechnology company listed on AIM under the ticker SAR. The business specialises in developing next-generation small-molecule kinase inhibitors that target the JAK signalling pathway.

Its lead programme, SDC-1801, is focused on autoimmune diseases including psoriasis, while its wider pipeline includes SDC-1802 and the licensed oncology asset SRA737. Through these programmes, Sareum aims to develop new treatments for autoimmune disorders, cancer and neuroinflammatory diseases.

South32 (LSE:S32) delivered a strong operational performance in fiscal 2026, surpassing its overall production guidance while increasing quarterly sales volumes by 15%. The higher sales helped unlock working capital and improve cash generation across the business. Production exceeded expectations across several operations, including aluminium, manganese, copper and zinc, with Sierra Gorda, Cannington and South Africa Manganese among the strongest contributors.

The company also took a significant step in reshaping its portfolio by agreeing to sell the majority of its aluminium value chain to Alcoa in a transaction with an implied enterprise value of up to $5.6 billion, in addition to rehabilitation obligations. Once the deal is completed, approximately 85% of South32’s pro forma earnings are expected to come from base and precious metals, while approved development projects are forecast to increase production by around 55%.

South32 continued to advance its long-term growth pipeline during the year. The company approved the construction of a fourth grinding line at the Sierra Gorda copper joint venture, a project expected to increase copper-equivalent production by roughly 30% from fiscal 2031. At the Hermosa development in Arizona, South32 invested approximately $710 million during fiscal 2026, progressed construction of the Taylor zinc-lead-silver mine and secured the Final Record of Decision, completing the project’s federal environmental permitting process.

Cash generation from equity-accounted investments remained strong, with the company receiving $503 million in net distributions during the year. South32 also continued returning capital to shareholders through dividends and share buybacks, distributing a combined $327 million. Although the transition of Mozal Aluminium into care and maintenance will result in one-off charges, these will be classified as significant items and excluded from underlying earnings as the company continues to prioritise operational performance and disciplined investment.

For fiscal 2026, South32 expects its underlying effective tax rate to be approximately 33%, reflecting the jurisdictions in which it operates and the associated royalty structures. The company also continued investing across its portfolio through capital expenditure, additional lease commitments and exploration activities at Hermosa, Ambler Metals and other development projects designed to support future growth in base metals.

More about South32

South32 is a diversified global mining and metals producer with an expanding focus on base and precious metals. Its portfolio includes copper, zinc, lead, silver and manganese assets alongside alumina and aluminium operations, with projects located across Chile, the United States, Australia, South Africa and Brazil.

The company is steadily repositioning its business towards long-life, higher-margin base metals assets, with the goal of generating the majority of future earnings from these commodities. This strategy is supported by ongoing investment in major development projects while maintaining shareholder returns through dividends and share buybacks alongside a disciplined balance sheet.

Following its leadership transition on 1 July 2026, South32 continues to strengthen its position as a leading upstream base metals producer. Key growth initiatives include the Sierra Gorda copper expansion, the Hermosa zinc-lead-silver and battery-grade manganese projects in Arizona, and established manganese operations in Australia and South Africa that underpin its global production footprint.

Artificial intelligence continues to drive investor enthusiasm, but rising oil prices are adding a new layer of uncertainty to financial markets.

Higher energy costs are reviving concerns about inflation, central bank policy and corporate profitability, making the investment backdrop more complex.

Inflation Risks Return to the Spotlight

While AI remains a powerful long-term growth theme, elevated oil prices can pressure consumers, increase business costs and delay interest rate cuts.

That combination may encourage investors to rotate toward energy stocks and companies with stronger pricing power while becoming more selective across high-growth sectors.

Balancing Growth and Risk

The AI story remains intact, but investors are increasingly weighing it against a changing macroeconomic environment. If oil prices remain elevated, inflation and geopolitical risks could play a larger role in shaping market performance during the months ahead.

The latest U.S. inflation report offered encouraging signs that price pressures are easing, but Federal Reserve officials remain cautious as renewed tensions in the Middle East threaten to push energy costs higher.

Although June consumer price data reduced expectations of an immediate interest rate increase, policymakers continue to warn that inflation risks have not disappeared.

Inflation Moderates While Fed Maintains Cautious Stance

Headline inflation slowed on an annual basis for the first time since January, while core inflation also eased, suggesting underlying price pressures are gradually cooling.

Even so, Federal Reserve Governor Christopher Waller said further rate hikes could be needed in the “near term” if inflation remains above target. “Sternly staring at inflation until it melts before our withering gaze is not an option,” he said.

Fed Chair Warsh later emphasized that policymakers “have no tolerance for persistently elevated inflation.”

AI Expansion and Supply Shocks Drive Concern

Governor Lisa Cook urged patience but warned that inflation risks remain tilted to the upside.

“I see it as prudent to give a bit more time to observe how inflation unfolds from here,” she said.

She also noted: “Going forward, though, I believe the risks continue to be strongly weighted toward higher inflation for at least two reasons.”

Cook identified expanding AI-related data center construction and “the recent big supply shocks—tariffs and the Middle East conflict—that risk leading to persistently higher inflation” as key concerns.

Energy Markets Could Shift the Inflation Outlook

Financial markets continue to expect the Fed to leave interest rates unchanged at the July meeting, but the renewed conflict involving the United States and Iran has increased uncertainty.

Disruptions to tanker traffic through the Strait of Hormuz have pushed oil prices higher, although WTI remains below the highs reached earlier in the conflict.

IEA Executive Director Fatih Birol warned that prolonged disruption could affect the global economy within weeks.

“If the Strait of Hormuz remains closed, we may again have some difficulty for global economies, including those in the region, developing nations, and Asia,” he said. “It is not months, it is weeks,” before major economic challenges return, he advised.