Author: Fiona Craig

Fulcrum Metals (LSE:FMET) has marked a significant year of development as it moves beyond laboratory testing and into pilot-scale deployment of its cyanide-free gold recovery process at the Teck-Hughes tailings project in Canada. Through a pilot plant agreement with TDI Solutions, the company expects to generate operational data that will support engineering studies, permitting activities and future commercial development, while establishing Teck-Hughes as a potential model for applying the technology across historic mine waste sites in the Kirkland Lake and Timmins mining districts.

The company also enhanced its financial position by securing a £6 million funding package from Yorkville Advisors and signing a non-binding royalty term sheet with Chancery Royalty. The proposed royalty arrangement could provide as much as US$20 million in non-dilutive funding for the Teck-Hughes project, reflecting growing external confidence in the commercial prospects of Fulcrum’s mine waste recovery strategy.

Alongside its technology initiatives, exploration activities continued to deliver positive results. A 159-hole auger drilling programme and an updated mineral resource estimate at the Tully Gold Project confirmed the presence of multi-commodity mineralisation and resulted in additional consideration through Loyalist shares. Meanwhile, exploration success at the Big Bear project has added further strategic flexibility as the company continues prioritising technology-driven tailings recovery opportunities.

Management said its combination of proprietary processing technology and a portfolio of tailings and exploration assets creates a distinctive position within the junior mining sector, providing exposure to both sustainable resource development and increasing demand for critical minerals. Over the next year, Fulcrum intends to complete the Teck-Hughes pilot programme, publish its maiden NI 43-101 resource estimate, advance engineering and permitting work, finalise royalty financing arrangements and pursue further value-enhancing opportunities across its Canadian asset portfolio.

More about Fulcrum Metals Plc

Fulcrum Metals Plc is an AIM-listed natural resources company focused on developing innovative solutions to recover precious and critical metals from historic mine tailings in Canada. Through an exclusive agreement to deploy Extrakt’s cyanide-free leaching technology across the Timmins and Kirkland Lake gold camps, the company is working to unlock value from legacy mining sites including Teck-Hughes and Sylvanite, while also maintaining exploration projects in Ontario and Saskatchewan.

Its business strategy combines ownership of mineral assets with proprietary processing technology to support more sustainable resource extraction. By progressing tailings projects towards production and expanding the model across some of Canada’s most prolific historic gold districts, Fulcrum aims to create long-term value while supporting the transition towards more environmentally responsible mining practices.

QinetiQ Group (LSE:QQ.) delivered a first-quarter trading update that was broadly in line with market expectations and reaffirmed its financial targets for fiscal 2027, while highlighting continued confidence in its long-term growth strategy.

The defence technology company said it expects first-half revenue to account for around 46% of full-year sales, a level Barclays analysts said is consistent with historical seasonal trends. Based on current forecasts, that implies first-half revenue of approximately £920 million with an underlying operating profit margin of about 11%.

Share buyback programme continues

During the first quarter, QinetiQ repurchased £32 million of shares as part of its ongoing £100 million buyback programme.

The company expects to complete the remaining £68 million of repurchases by March 2027.

Management also confirmed its full-year outlook remains unchanged, with guidance calling for organic revenue growth of between 3% and 5%, an underlying operating margin of approximately 11.0% to 11.5%, earnings growth of 8% to 10%, and cash conversion above 90%.

QinetiQ added that it continues to evaluate strategic options for its U.S. operations and plans to provide a further update alongside its interim results on 12 November 2026.

Barclays sees no change to forecasts

“As a result of this, we make no changes to our FY forecasts and expect consensus to stay at ~£228m,” Barclays analysts said following the update.

The bank noted that the company’s order backlog remains strong and visibility has improved following the UK government’s recently announced Defence Investment Plan (DIP).

Defence spending expected to support long-term growth

Barclays said the Defence Investment Plan, unveiled on 30 June 2026, provides greater clarity over future defence procurement and military capability spending as the UK and other European countries continue increasing investment in national security.

The analysts also described QinetiQ as “still the cheapest stock in U.K. defence,” noting that the shares trade at approximately 9.5 times enterprise value to EBIT compared with an average multiple of around 12.5 times for UK defence peers.

According to Barclays, QinetiQ’s expertise in testing and evaluation, cyber security, digital integration and applied research positions the company to benefit from increased Ministry of Defence spending as military modernisation efforts accelerate.

Gold prices remained under pressure on Thursday as investors focused on the inflationary impact of rising energy prices rather than the latest easing in US inflation, reinforcing expectations that the Federal Reserve will remain cautious over future interest-rate decisions.

At 04:42 ET (08:42 GMT), spot gold (XAU/USD) was down 0.7% at US$4,032.37 an ounce, while gold futures slipped 0.4% to US$4,037.10. Silver (XAG/USD) declined 1.48% to US$56.92 an ounce and platinum (XPT/USD) lost 1.11% to US$1,659.20.

Oil rally clouds inflation outlook

Although recent US inflation reports showed producer and consumer price pressures easing, markets remained more concerned about the impact of rising crude oil prices.

The latest increase in energy prices followed renewed military action in the Middle East, raising concerns that fuel costs could once again feed into broader inflation and delay any future easing of monetary policy.

Normally, weaker inflation would support gold by reducing expectations for higher interest rates and weighing on the US dollar. However, the oil rally has prompted investors to question whether the recent disinflation trend will continue.

Federal Reserve keeps policy options open

Federal Reserve Chair Kevin Warsh said policymakers remain committed to bringing inflation back to the central bank’s 2% target and stand ready to adjust interest rates if inflation proves more persistent than expected.

He also argued that investment in artificial intelligence alone is unlikely to create widespread inflationary pressures.

Federal Reserve Governor Lisa Cook echoed the cautious stance, saying further action could be required if inflation remains elevated, while New York Fed President John Williams described current interest rates as “well positioned” to guide inflation back towards target.

Geopolitical risks continue to support oil

Markets also remained focused on developments in the Middle East.

The United States carried out another day of strikes against Iranian targets, while President Donald Trump reiterated that military operations would continue until attacks on commercial shipping ceased and the Strait of Hormuz reopened.

Higher oil prices continue to pose a challenge for policymakers by increasing the risk that inflation remains above target, potentially supporting Treasury yields and the US dollar while reducing the appeal of non-yielding assets such as gold.

ANZ said the key issue for investors is whether the Federal Reserve interprets the latest rise in oil prices as a temporary supply disruption or the beginning of a broader inflationary trend.

Oil prices edged lower on Thursday, taking a breather after a sharp three-day rally, as investors continued to assess the impact of the conflict involving Iran on global energy supplies and the security of the Strait of Hormuz.

At 04:38 ET (08:38 GMT), Brent crude for September delivery slipped 0.4% to US$84.58 per barrel, while West Texas Intermediate (WTI) crude eased 0.1% to US$79.56 per barrel.

The two global benchmarks had surged nearly 10% earlier in the week, reaching one-month highs after geopolitical tensions intensified.

Hormuz remains the market’s main concern

The Strait of Hormuz continues to dominate market attention, with around 20% of global oil and liquefied natural gas exports passing through the strategic waterway.

Oil prices climbed after the United States carried out another round of strikes against Iranian military targets linked to attacks on commercial shipping.

US officials said the operation was designed to weaken Iran’s ability to threaten maritime trade in the Gulf, while Tehran warned that the conflict represented an “existential war” with the United States and cautioned that regional energy exports could face further disruption.

Analysts expect volatility to continue

Analysts believe the latest escalation has significantly increased supply risks.

“The concern is that renewed oil supply disruptions come amid the large inventory drawdowns through the second quarter, leaving the market more vulnerable,” ING analysts said.

“In addition, global SPR releases, which have helped the market out over recent months, are set to end in the next few weeks,” they added.

Jefferies also expects the current tensions to continue for several weeks, arguing that shipping through the Strait of Hormuz is likely to remain constrained even if the conflict does not broaden into a full-scale war.

Inventory data supports crude prices

US inventory figures also provided a supportive backdrop.

The Energy Information Administration reported a 1.7 million-barrel decline in crude oil inventories during the week ended 10 July, broadly matching market forecasts.

Gasoline inventories fell by 1.5 million barrels as seasonal demand remained strong, while distillate stocks unexpectedly increased by 4.6 million barrels.

The International Energy Agency warned in its latest Oil Market Report that although shipping through the Strait of Hormuz improved during June, the renewed conflict has increased uncertainty and could postpone expectations for an oil market surplus in 2027.

Airbus (EU:AIR) has signed a multi-year agreement with Scaleway, the cloud computing subsidiary of Iliad, to provide cloud infrastructure for sensitive industrial and defence applications as the aerospace group strengthens its European digital sovereignty strategy.

The partnership will support the deployment of artificial intelligence solutions being developed alongside French AI company Mistral.

European cloud partnership supports AI deployment

Under the agreement, Scaleway will host a range of mission-critical applications covering aircraft design, engineering, manufacturing and corporate operations.

The announcement follows Airbus’ partnership with Mistral, unveiled in May, to jointly develop tailored AI tools for the aerospace and defence industries.

“The fact that the Mistral models are already deployed on Scaleway infrastructure will allow us to accelerate our AI approach,” Airbus Chief Digital Officer Catherine Jestin told reporters.

Airbus intends to deploy Mistral’s AI technology across military programmes and certified aviation systems, areas where the company believes European partners should retain control over intellectual property, research, development and sensitive information.

Digital sovereignty at the centre of the strategy

According to Jestin, Airbus selected Scaleway after evaluating more than 150 technical and legal criteria.

“The second set of criteria concerned legal requirements, in particular the much-discussed protection against the kill switch and against the application of extraterritorial laws,” she said.

The agreement reflects growing efforts across Europe to strengthen digital sovereignty as artificial intelligence becomes increasingly important in critical infrastructure, industrial production and defence technologies.

Last month, the European Commission proposed a Cloud and AI Development Act designed to expand Europe’s domestic cloud infrastructure and computing capabilities.

Migration programme to continue through 2028

Airbus expects to transfer around 70 critical applications to Scaleway’s cloud platform by the end of 2028.

Over the longer term, the migration programme could eventually extend to as many as 900 applications during the next five to six years.

The financial terms of the agreement were not disclosed.

TotalEnergies (LSE:TTE) said it expects improved second-quarter earnings as higher oil and gas prices, driven by the conflict involving Iran, supported its upstream business. Despite the stronger outlook, the company’s shares fell after investors focused on weaker expectations for its integrated LNG division.

Higher energy prices boost earnings outlook

The conflict in Iran and the resulting disruption to global energy markets lifted crude oil and natural gas prices during the second quarter, providing a significant tailwind for the French energy group.

According to TotalEnergies, Brent crude averaged approximately US$103.80 per barrel during the quarter, up around 45% from roughly US$67 in the same period last year. The company also reported an average LNG price of US$10.20 per million British thermal units, while average gas prices reached US$5.55.

TotalEnergies said cash flow from its exploration and production business should “reflect this level of production while capturing the increase of the average liquids prices,” adding around US$1 billion compared with the first quarter.

LNG business disappoints investors

Although the company expects stronger downstream and integrated power results, it warned that its integrated LNG division is likely to deliver weaker performance.

Integrated LNG cash flow and earnings are expected to “decrease significantly,” reflecting weaker gas trading activity against a broadly flat to declining European market.

JPMorgan described the trading update as “fundamentally solid,” but said it was unlikely to generate the same earnings upgrades recently seen at rivals Shell and BP. The bank highlighted softer-than-expected LNG performance compared with the British energy majors.

Production and balance sheet remain on track

Hydrocarbon production is expected to total almost 2.4 million barrels of oil equivalent per day during the quarter.

The company estimated that the conflict in the Middle East reduced production by around 210,000 barrels of oil equivalent per day, less severe than the 360,000 barrels previously anticipated.

Net investment remains on course to meet TotalEnergies’ annual guidance of US$15 billion. The group also expects its gearing ratio to improve by around two percentage points by the end of the second quarter, while working capital is forecast to decline by between US$1 billion and US$1.5 billion.

TotalEnergies is scheduled to publish its full second-quarter results on 23 July.