Author: Fiona Craig

Mila Resources (LSE:MILA) has announced a significant increase in the JORC-compliant Mineral Resource Estimate for the Coffey Gold Deposit at its Kathleen Valley Gold Project in Western Australia.

The updated Inferred Mineral Resource contains 599,000 tonnes grading 2.1 grams per tonne of gold for approximately 41,300 ounces of contained gold. Compared with the previous 2020 estimate, both tonnage and contained gold have roughly doubled following additional drilling across the deposit.

The revised resource also contains notable silver and zinc grades, adding further potential value to the mineralised system at Coffey.

Updated estimate strengthens Kathleen Valley potential

The expanded resource provides additional support for the development potential of both the Coffey deposit and Mila’s wider Kathleen Valley position within Western Australia’s Wiluna-Norseman Belt.

Exploration upside remains beyond the currently defined resource, with several gold targets yet to be fully tested. The project area also contains mapped lithium-bearing pegmatites, providing another potential exploration opportunity alongside its established precious and base metal mineralisation.

There is also scope for the mineralised system to extend towards neighbouring properties, offering the possibility of further resource growth if geological continuity can be demonstrated through future exploration.

Strategic review to assess options for Kathleen Valley

Following the resource upgrade, Mila is undertaking a strategic review to determine the most effective way to generate value from its Kathleen Valley interest.

The company currently holds rights to 30% of the project and has an option that could increase its ownership to 80%. The review comes as Mila simultaneously advances its portfolio of exploration assets in Queensland.

While the Coffey resource increase represents an important project milestone, Mila’s broader outlook remains constrained by its financial position. The company currently generates no revenue and continues to record losses and negative free cash flow.

Share-price technical indicators also remain under pressure, with the stock trading below major moving averages and MACD remaining negative. Conventional valuation measures provide limited support while earnings are negative and no dividend yield is available.

More about Mila Resources

Mila Resources Plc is a London-listed post-discovery gold and copper resource development company focused on Australian mineral projects.

Its portfolio includes the Kathleen Valley Gold Project in Western Australia, where Mila holds rights to a 30% interest with an option to increase its ownership to 80%. The company is also progressing a portfolio of exploration projects in Queensland as it seeks to build exposure to gold, copper and other prospective mineral resources.

S&U plc (LSE:SUS) delivered a strong second quarter as its lending portfolio expanded to a record level, supported by growth across its motor and property finance operations and continued solid credit quality.

Group capital receivables increased 20% year on year to £616 million, while borrowings stood at £285 million, remaining within the company’s existing funding facilities.

S&U is also approaching completion of a significant securitisation and refinancing programme intended to provide additional capacity for future expansion. Details of the new funding arrangements are expected to be announced alongside the group’s half-year results in late September.

Advantage Finance accelerates lending despite weaker market

Advantage Finance continued to outperform the wider UK motor finance market, with year-to-date deal volumes increasing by 50%.

Advances reached £105 million during the first half, despite the broader UK car finance market contracting by approximately 3%. Collections also improved, while bad debts were reduced by almost 20%.

Operational improvements are contributing to greater efficiency across the division. S&U reported a 50% increase in productivity within customer relations following the targeted introduction of artificial intelligence, alongside continued cost controls.

Management expects the financial benefits from these efficiency measures to become more visible during the second half of the year and into 2027/28.

Aspen Bridging grows loan book in subdued property market

Aspen Bridging experienced slower near-term profit growth as conditions in the UK property market remained subdued and regulatory pressures continued to affect the rental sector.

Despite these challenges, capital receivables increased to £208 million, representing growth of almost one-third compared with the previous year.

The business has adjusted its lending mix towards longer-duration loans for more experienced customers. While this approach results in slower repayment cycles, S&U said it helps maintain the quality of the lending book.

Late and beyond-term customers remained broadly stable at approximately 7% of Aspen’s portfolio.

Refinancing expected to support next stage of growth

Chairman Anthony Coombs pointed to S&U’s ability to perform consistently through differing economic environments. He also noted increasing interest from strategic and US investors in smaller UK financial businesses despite relatively subdued domestic sentiment.

The forthcoming securitisation and refinancing arrangements are expected to mark an important stage in the group’s development, providing a more flexible funding platform to support further expansion.

S&U’s investment outlook continues to benefit from strong reported profitability, an attractive earnings multiple and a relatively high dividend yield. However, inconsistent cash-flow generation and increased leverage remain potential constraints, while share-price technical indicators are broadly neutral.

More about S&U plc

S&U plc is a UK specialist lender operating primarily through Advantage Finance and Aspen Bridging.

Advantage Finance provides motor finance to consumers and has continued to expand deal volumes despite contraction in the wider UK car finance market. Aspen Bridging specialises in property-backed lending and has adapted its product offering to changing conditions in the housing and rental markets while maintaining a focus on credit quality.

The group currently has record capital receivables of £616 million and borrowings of £285 million against £330 million of available facilities. Its securitisation and refinancing strategy is designed to provide more flexible and competitively priced funding to support continued growth across its specialist lending businesses.

Gelion (LSE:GELN) has successfully completed an Advanced Propulsion Centre UK-funded programme evaluating its Nano-Encapsulated Sulfur cathode technology in lithium-sulfur pouch cells designed for demanding drone applications.

The battery materials company conducted the programme alongside defence and aerospace specialist QinetiQ, which independently manufactured and tested cells incorporating Gelion’s technology. The cells use sulfur in place of cathode materials dependent on critical minerals while targeting the high energy density and power required for unmanned aerial systems.

Cells complete demanding drone mission profiles

Testing subjected the lithium-sulfur cells to operating conditions designed to replicate drone missions, including repeated high-power requirements during take-off and landing.

The cells demonstrated stable cycling for more than 200 cycles at a 1C rate. They also delivered strong performance at higher 3C and 6C discharge rates, with limited degradation recorded during testing.

According to Gelion, the results provide further evidence that its Nano-Encapsulated Sulfur, or NES™, technology can address important challenges traditionally associated with lithium-sulfur batteries, including the polysulfide shuttle effect.

Successful independent testing also strengthens the company’s efforts to position NES™ for applications where battery weight, energy density and high-power delivery are particularly important.

Results support defence and aerospace commercial strategy

Gelion sees potential applications for the technology across defence, aerospace, unmanned systems and other lightweight mobility markets.

Completion of the QinetiQ programme provides additional technical validation as Gelion continues discussions with prospective commercial and development partners.

The company’s wider investment outlook nevertheless remains affected by continuing losses and cash consumption, while negative earnings limit support from conventional valuation measures.

These financial challenges are partly balanced by more constructive share-price technical indicators, including trading above key moving averages and a positive MACD signal. Recent company updates have also pointed to progress against technical and commercial milestones and an improvement in EBITDA losses, although execution and commercialisation timelines remain important risks.

More about Gelion PLC

Gelion plc is an advanced battery materials company developing next-generation cathode technologies for lithium-ion and lithium-sulfur batteries.

Its proprietary Nano-Encapsulated Sulfur (NES™) cathode technology is designed to replace cathodes reliant on critical minerals with more abundant sulfur while retaining compatibility with established battery manufacturing infrastructure.

Gelion’s commercialisation strategy centres on partnerships with industrial companies and battery manufacturers serving automotive, defence, electronics and other high-performance applications. Its collaborations include TDK and Mitsui Kinzoku in Japan, QinetiQ and Nissan in the UK, the National Laboratory of the Rockies in the US and Germany’s Max Planck Institute of Colloids and Interfaces.

Shuka Minerals (LSE:SKA) has completed the eleventh and final drill hole of its initial exploration campaign at the Kabwe project in Zambia, identifying a new near-surface zinc orebody to the south of the Speaks and Mine Club zones.

Drill hole KBDD11 encountered two high-grade mineralised intervals, including a 27.1-metre section grading 19.6% zinc. Peak readings approached 70% zinc, while the drilling also returned notable concentrations of lead, copper and vanadium.

The results provide further evidence of significant mineralisation outside the previously established Kabwe zones and could expand the project’s overall mineralised footprint.

Discovery could represent extension of historic orebodies

Shuka believes the newly identified mineralisation may be geologically associated with Kabwe’s major No. 1 and No. 2 orebodies.

Initial interpretation suggests the discovery could form part of a steeply dipping, pipe-like mineralised structure. If confirmed by further drilling, this could materially increase the scale of the mineralised system currently being evaluated at Kabwe.

Management highlighted the potential importance of locating exceptionally high-grade zinc close to surface. Mineralisation that is both high grade and readily accessible could provide opportunities for earlier-stage development while improving the broader economic potential of the project.

The company plans to undertake a second phase of drilling once laboratory assays have been received to confirm the results generated using portable XRF equipment.

Kabwe catalysts offset financial challenges

Exploration progress at Kabwe and financing-related developments provide positive corporate catalysts for Shuka, while improving near-term technical momentum offers additional support.

However, the company’s broader outlook continues to be constrained by weak financial performance, including persistent losses, negative gross profit and recurring cash consumption alongside volatile revenue.

Traditional valuation measures also provide limited support while earnings remain negative and the company does not pay a dividend. As a result, progress at Kabwe and confirmation of the latest drilling results remain important factors for the investment case.

More about Shuka Minerals Plc

Shuka Minerals Plc is an Africa-focused mine operator and developer with a primary listing on London’s AIM market and a secondary listing on the JSE’s AltX market.

The company is advancing the Kabwe Zinc-Lead-Copper Project in Zambia, where it is targeting near-surface and deeper mineralisation containing zinc, lead, copper, silver and vanadium.

Kabwe includes the Speaks and Mine Club orebodies, which were previously covered by an NI 43-101 report containing multimillion-tonne indicated and inferred resources. Shuka’s current exploration programme is extending modern drilling into southern areas of the project to improve its geological models, establish mineralisation continuity and potentially expand the existing resource inventory.

Empresaria (LSE:EMR) returned to growth during the first half of 2026, recording higher net fee income and a sharp improvement in adjusted operating profit as performance strengthened across several of its divisions.

Net fee income increased by 5%, while adjusted operating profit climbed 135%. The improvement was led by strong contributions from the group’s global workforce solutions and operational outsourcing businesses.

Specialist recruitment also made progress after previously weighing on group earnings. Cost reductions and restructuring measures helped the division return to profitability, contributing to higher adjusted profit before tax and greater stability in net debt.

Following the stronger first-half performance, management has increased its expectations for full-year profit.

Skillhouse disposal supports balance sheet

Empresaria completed the disposal of its Skillhouse business in April, generating a profit from the transaction and releasing cash that could be used to reduce borrowings and provide additional working capital.

The transaction forms part of management’s broader approach to capital allocation and cost control, with the group continuing to address businesses that are failing to generate acceptable returns.

Management is also targeting improved employee productivity as it seeks to establish profitable growth across each of Empresaria’s operating divisions.

Despite the progress made during the first half, geopolitical uncertainty and difficult market conditions continue to affect the global recruitment industry and remain potential obstacles to further growth.

Financial challenges remain despite operational progress

The improvement in adjusted profitability provides a more positive operational backdrop, although Empresaria’s overall investment outlook remains constrained by continuing net losses and a more leveraged balance sheet.

Share-price technical indicators offer some support, with the stock trading above major moving averages. However, valuation support remains limited while reported earnings are negative and the shares do not currently provide a dividend yield.

More about Empresaria

Empresaria Group plc is an international specialist staffing and recruitment business listed on AIM. The group provides global workforce solutions, operational outsourcing and specialist recruitment services across its portfolio.

Its strategy centres on improving productivity, controlling costs and increasing profitability across its different service lines while navigating challenging conditions in global labour markets.

Arkadian Strategic Metals (LSE:AKN) has completed the installation of ladders and platforms at its Clogau-St David’s Gold Mine in north Wales, creating staged access between the Tyn y Cornel Level and the historic Jack Williams stope.

The newly established route will enable the company to carry out detailed geological inspections, mapping and systematic sampling across the westernmost historically worked section of the Main Lode. Arkadian identified the area as an important exploration target following drilling conducted in 2020 and 2021 and subsequent three-dimensional geological modelling.

Existing workings provide cost-effective exploration route

Rather than immediately developing new underground crosscuts, Arkadian intends to use the existing mine infrastructure to investigate the continuity of the geology and assess gold mineralisation within the Main Vein around the Jack Williams workings.

The programme is designed to provide additional geological information before the company decides whether more extensive underground development is justified in the area.

Results from the Jack Williams work will be considered alongside an ongoing mineralogical review of Level 5 at Lower Llechfraith. The combined information will feed into a broader technical assessment covering the Clogau mine.

Arkadian plans to use this assessment to prioritise underground exploration targets and determine where future work and development should be concentrated.

Financial position remains a key consideration

While continued progress at Clogau provides evidence of project execution, Arkadian’s broader outlook remains constrained by its financial performance. The company currently generates no revenue and continues to report losses and cash outflows.

Longer-term technical indicators also remain weak. With the company loss-making and no stated dividend, its valuation case continues to depend heavily on exploration progress and the potential of its underlying mineral assets.

More about Arkadian Strategic Metals Plc

Arkadian Strategic Metals Plc is an AIM-listed mining and exploration company focused on strategic metals and gold, with Welsh gold forming an important part of its portfolio.

The company owns 100% of the Clogau-St David’s, Dolgellau and Gwynfynydd gold projects in Wales. Its wider portfolio also includes interests in critical metals, graphite, oil and rare earths projects located across Greenland, England and Sweden.

Nexteq’s (LSE:NXQ) Densitron business has secured a strategic design contract with a new customer in the automotive electronics industry, marking the technology group’s entry into the automotive and transportation market.

Under the agreement, Densitron will develop customised display and human-machine interface solutions for a new electric delivery vehicle platform. The programme requires bespoke engineering work and further refinement of product specifications ahead of the planned production phase.

Manufacturing is expected to begin during the second half of fiscal 2026. Nexteq anticipates volumes will increase significantly over the following three years as the electric vehicle platform is rolled out more widely.

Automotive deal broadens Nexteq’s market exposure

The contract represents an important expansion for Nexteq beyond its established industrial markets, providing the group with exposure to the automotive and transportation sector.

Management said the project demonstrates Densitron’s ability to provide higher-value technology solutions tailored to individual customer requirements. It also reinforces the brand’s position as an outsourcing partner for businesses seeking specialist display, engineering and human-machine interface expertise.

The new relationship could provide an additional source of revenue growth as production volumes increase, while potentially establishing a longer-term partnership with the automotive electronics customer.

Nexteq enters this new market with a strong balance sheet and relatively low debt levels. However, the investment picture continues to reflect pressure from tighter margins and weaker or more volatile cash generation.

From a technical perspective, the shares remain below important moving averages despite indicators suggesting oversold conditions. Meanwhile, the valuation is supported by a relatively high dividend yield, although the earnings multiple remains moderate.

More about Nexteq plc

Nexteq plc is a technology solutions provider focused on selected industrial markets, helping electronic equipment manufacturers outsource the design, development and supply of technology components that are not considered core to their operations.

The group operates through its Quixant and Densitron brands, combining expertise across electronic hardware, software, displays and mechanical engineering. Nexteq operates across six countries and serves more than 500 customers worldwide, with Taiwan playing an important role in its manufacturing and supply chain operations.

Gold prices moved lower on Tuesday after briefly reaching their highest level in more than three months, with investors taking some profits while awaiting U.S. inflation data and Federal Reserve Chair Kevin Warsh’s speech for fresh signals on monetary policy.

At 01:00 ET (05:00 GMT), XAU/USD declined 0.3% to $4,688.96 an ounce. Gold futures, meanwhile, were up 1.0% at $4,746.09. XAG/USD gained 0.8% to $69.51 an ounce, while XPT/USD advanced 0.5% to $1,889.32. The U.S. Dollar Index was broadly steady at 98.98.

The modest pullback comes after gold extended its recent rally to a more-than-three-month high, supported by renewed concerns over U.S. fiscal policy and the longer-term outlook for the dollar.

U.S. Treasury Strategy Revives Debasement Concerns

Gold’s recent momentum accelerated after the U.S. Treasury announced last week that it planned to at least double purchases of longer-dated government debt in an effort to contain elevated yields.

The announcement pushed Treasury yields lower and weakened the dollar, improving the affordability of gold for buyers using other currencies. At the same time, the intervention raised fresh questions about U.S. government finances and whether attempts to directly influence borrowing costs could undermine confidence in the dollar.

Treasury Secretary Scott Bessent has indicated that purchases of longer-dated debt could be expanded further, although he provided no new indication of additional action on Monday. He has also said the administration is preparing a fiscal initiative designed to address high government borrowing costs.

The developments have revived interest in the so-called debasement trade, a theme that helped gold surge roughly 65% during 2025.

Under this strategy, investors turn to assets such as gold as protection against the possibility that expansionary fiscal policies and easier financial conditions could gradually erode the purchasing power of the dollar.

Markets are now looking towards upcoming U.S. inflation figures and Warsh’s first speech at Jackson Hole. Softer inflation could reinforce expectations of a more accommodative Federal Reserve, potentially benefiting gold, while a hawkish message from Warsh could challenge the rally because the precious metal does not offer a yield.

Geopolitical and Trade Risks Add to Gold’s Appeal

International trade and geopolitical tensions are providing another reason for investors to consider gold as a portfolio diversifier.

Washington has threatened economic penalties against countries that continue trading with Iran as part of its campaign to isolate Tehran. Separately, trade tensions between the U.S. and Canada have escalated following unsuccessful negotiations, with Washington imposing 50% tariffs on certain Canadian goods and threatening equivalent duties on Canadian cars, trucks and automotive components from January 2027.

The combination of fiscal uncertainty, geopolitical risk, trade friction and questions surrounding monetary policy has strengthened attention on gold’s traditional role as an alternative store of value.

Tony Sycamore, senior market analyst at IG, said recent price action suggests gold has likely established a floor around its late-June low near $3,942.

According to Sycamore, the initial rally in August was partly driven by optimism that diplomatic progress in the Middle East could lower oil prices and reduce pressure on central banks to raise interest rates.

Those expectations did not materialise, but gold continued to climb as Treasury intervention brought the debasement trade back into focus and provided the market with a fresh catalyst.

Sycamore noted that gold has broken through trendline resistance around $4,420 and moved above its 200-day moving average near $4,515, strengthening the technical outlook. He expects declines to attract buying interest as traders turn their attention towards the next major resistance zone between $4,900 and $5,000.