Author: Fiona Craig

Zoo Digital (LSE:ZOO) has announced a series of board changes aimed at strengthening its governance framework as the company prepares for its next stage of growth. Alan Newman has been appointed as an independent non-executive director and chair designate of the Audit Committee, bringing extensive experience from senior roles across the financial and media sectors, including positions at Ebiquity, YouGov and Future.

Leadership transition accompanies wider board refresh

Newman is expected to assume the Audit Committee chair role following the FY26 AGM, succeeding long-serving director Mickey Kalifa. The appointment is intended to enhance financial oversight as Zoo continues to navigate changing conditions within the global entertainment and content services industry.

The company has also confirmed that Nathalie Schwarz, previously senior independent director, will take over as chair from Gillian Wilmot after nearly seven years in the role. In addition, Zoo is actively seeking another independent non-executive director who will eventually chair the remuneration committee, reflecting a broader effort to refresh and strengthen the board following recent restructuring initiatives.

While the group continues to face pressure from weak financial performance, including ongoing losses and softer free cash flow, management highlighted progress through cost reduction measures, improved margins and positive cash EBITDA generation. However, declining revenues, lower cash reserves and weak technical trading indicators continue to weigh on the company’s overall outlook.

More about Zoo Digital

Zoo Digital Group is a technology-driven localisation and digital media services company serving the global entertainment industry. The business works with major Hollywood studios and streaming platforms, providing services such as dubbing, subtitling, captioning, metadata creation and media processing. Through its proprietary technology platform and network of more than 12,000 freelancers, Zoo operates across the U.S., Europe, the Middle East and Asia.

88 Energy (LSE:88E) has reported a substantial increase in the prospective resource estimate for its South Prudhoe Project in Alaska, with total gross unrisked 2U resources rising by around 35% to 768.9 million barrels of oil and natural gas liquids, equivalent to 640.7 million barrels on a net basis. The updated estimate follows fresh geophysical analysis of 3D seismic data, the introduction of a maiden Brookian resource covering the West Sak and Upper Schrader Bluff reservoirs, and an enhanced estimate for the Ivishak reservoir.

Augusta-1 emerges as priority exploration target

The company said the revised assessment highlights the scale of the South Prudhoe asset, its stacked reservoir characteristics and the potential flexibility for future development given its location close to established producing oil fields. The Augusta Prospect, which spans Brookian, Kuparuk and Ivishak formations, is now set to be evaluated through the planned Augusta-1 exploration well.

Augusta-1 is targeting up to 133.7 million barrels of gross unrisked 2U resources and has become 88 Energy’s primary drilling focus on Alaska’s North Slope. Management noted that the prospect benefits from nearby analogue reservoirs with proven production histories, while drilling preparations have advanced with a rig already secured. The company believes successful exploration at Augusta-1 could provide a significant near-term catalyst and strengthen its strategic position in the region.

More about 88 Energy

88 Energy Limited is an oil and gas exploration company concentrated on Alaska’s North Slope, where it holds a 100% working interest in the South Prudhoe Project. The business focuses on multi-reservoir oil-bearing formations located close to the Prudhoe Bay and Kuparuk River producing units, aiming to benefit from established infrastructure and proven hydrocarbon trends in the area.

ECR Minerals (LSE:ECR) has completed its acquisition of Paleogold Limited, gaining exposure to a portfolio of Australian gold assets that includes a 50% interest in the Lucky Strike Maddens Flat Group of Mines in Queensland and a 20% stake in the Salt Bush project in South Australia. The transaction has been financed through a combination of newly issued shares, convertible loan notes, warrants and available cash resources. Deferred payments under the agreement are tied to future production revenues and linked to milestone-based cash flow generation from the acquired projects.

Focus shifts toward near-term gold production

The company intends to begin targeted gold production at the Maddens project within the next three to six months, while Salt Bush is being positioned for potential production around mid-2027. Alongside these developments, ECR continues to progress exploration work at the Tuckanarra project in Western Australia.

As part of the acquisition, ECR is incorporating Paleogold’s operational team to strengthen on-site technical and production capabilities. Recent visits to the acquired assets have increased management’s confidence in both the high-grade gold potential and the wider exploration opportunities across the portfolio. The move reflects the company’s strategy of transitioning towards near-term production while building longer-term growth opportunities for shareholders.

Despite these developments, ECR’s outlook remains affected by weak financial performance, including a lack of revenue, ongoing losses and continued cash outflows. However, the company maintains a debt-free balance sheet and has reported some improvement in losses and cash flow trends. Market indicators remain mixed, with softer technical signals and valuation metrics weighed down by negative earnings and the absence of dividend support.

More about ECR Minerals

ECR Minerals is a UK-listed gold exploration and development company with operations across Queensland, Western Australia and South Australia. The group focuses on high-grade hard-rock gold deposits and projects with near-term production potential, pursuing a strategy aimed at combining cash-generating mining operations with exploration-led upside in the Australian junior mining sector.

Europa Oil & Gas (Holdings) (LSE:EOG) has confirmed that North Yorkshire Council’s Local Planning Authority has refused planning consent for the Cloughton gas appraisal well, despite recommendations in favour of the project from council planning officers and 13 independent specialist reports. The company said it was disappointed by the decision and does not agree with the reasons given for the refusal.

Company reviews next steps following planning setback

Europa is now evaluating its options, including a possible appeal process, which could lead to delays in progressing the Cloughton appraisal project and introduce additional regulatory uncertainty around its UK gas development activities. The outcome represents a setback for the company’s domestic gas appraisal plans as it seeks to advance upstream opportunities within the UK energy market.

The group’s broader outlook continues to be shaped by difficult financial conditions, including declines in revenue and profitability. However, management believes supportive corporate developments and some positive technical market indicators may provide scope for future recovery. While current valuation metrics reflect ongoing unprofitability, the company noted that insider backing and strategic progress across its portfolio continue to support longer-term potential.

More about Europa Oil & Gas (Holdings)

Europa Oil & Gas (Holdings) plc is an AIM-listed oil and gas company focused on exploration, development and production activities across West Africa, the UK and Ireland. The business pursues upstream energy opportunities, including gas appraisal projects, with exposure to regional exploration and supply markets.

Alternative Income REIT plc (LSE:AIRE) has confirmed that it received an indicative, conditional and non-binding approach from its largest shareholder, Glenstone REIT plc, regarding a potential cash offer for the shares it does not already own. However, the company’s independent directors said the proposal does not currently contain a stated offer price or sufficiently detailed terms, preventing a full assessment at this stage. The board also noted that an earlier proposal from Glenstone in November 2025 had been rejected on the basis that it materially undervalued the business.

Board points to refinancing strength and stable income outlook

Directors contrasted Glenstone’s approach with a possible offer from AEW UK REIT, which they said was at a level that could potentially be recommended to shareholders. The company also reaffirmed confidence in its financial position, citing its recently refinanced balance sheet, fully occupied long-lease property portfolio and ongoing dividend prospects. Shareholders have been advised to take no action while Glenstone remains subject to a June 12 deadline under UK takeover regulations to either announce a firm intention to proceed or withdraw its interest.

Alternative Income REIT’s investment case continues to be supported by resilient operating performance, improved cash generation during FY2025 and an attractive valuation profile, including a low price-to-earnings ratio and elevated dividend yield. The company also pointed to supportive technical trading trends, refinancing certainty and portfolio activity expected to enhance shareholder value.

More about Alternative Income REIT Plc

Alternative Income REIT plc is a UK-listed real estate investment trust focused on delivering long-term, inflation-linked income through a diversified portfolio of 19 properties. Its assets are fully let and largely secured on long leases featuring index-linked rent reviews, with the company targeting dependable and sustainable shareholder dividends within the UK REIT sector.

Cora Gold (LSE:CORA) has continued to advance its Sanankoro project, with a 2024 mineral resource estimate confirming resources exceeding 1 million ounces of gold and a 2025 definitive feasibility study delivering a 26% rise in reserves alongside favourable project economics and significant cash-flow potential. During the year, the company also reported positive exploration results in Senegal, implemented board-level changes and completed equity fundraisings aimed at progressing Sanankoro towards construction.

Strategic investment supports Sanankoro development plans

Following the year-end, Cora secured a £15.7 million equity investment led by Singapore-based Eagle Eye, which has now become the company’s largest shareholder and a strategic partner for its operations in Mali. In addition, the group entered into a conditional US$120 million gold streaming agreement with Eagle Eye, providing a potential funding route for the development of Sanankoro. At the same time, Cora continues to move forward with permitting activities and preparations for its 2026 AGM, encouraging shareholders to vote by proxy while also offering online access to proceedings.

More about Cora Gold

Cora Gold Limited is an AIM-listed gold exploration and development company focused on West Africa. Its primary asset is the Sanankoro Gold Project in Mali, supported by additional exploration interests such as Madina Foulbé in Senegal. The company concentrates on oxide gold deposits and aims to advance near-term development opportunities across the region.

Goldman Sachs said stronger corporate earnings and improving profit expectations are continuing to push the S&P 500 toward fresh record highs, with the benchmark index up 8% year-to-date through Monday.

Companies in the index delivered first-quarter earnings-per-share growth of 17% year-over-year, excluding certain non-recurring items.

At the same time, forward 12-month EPS forecasts have climbed 13%, while valuation multiples have eased modestly, with the market’s price-to-earnings ratio down 4%.

Investment Spending Outpaces Buybacks

The bank pointed to a notable shift in how corporations are deploying capital.

Capital expenditures among S&P 500 companies jumped 38% from a year earlier during the first quarter, far exceeding the 1% growth recorded in share repurchases.

Goldman expects the gap to widen further into 2026, projecting capex to rise 33% to around $2 trillion, compared with a 3% increase in buybacks to roughly $1 trillion.

AI Companies Continue Driving Spending Boom

Major AI infrastructure companies remain at the center of the spending surge.

Goldman forecasts AI hyperscalers will collectively spend approximately $755 billion in 2026 as demand for artificial intelligence infrastructure continues to expand.

The broader increase in investment activity is also spreading across multiple sectors beyond technology.

Market Rewards Companies Focused on Expansion

According to Goldman, investors have increasingly favored companies investing aggressively in future growth opportunities over firms primarily emphasizing shareholder cash returns.

This preference has been especially strong among AI-linked businesses.

The bank also noted that uncertainty tied to the ongoing conflict and shifting Federal Reserve expectations has helped revive investor appetite for higher-quality companies after much of 2025 saw rotation away from the segment.

Strong Balance Sheets Still Viewed Favorably

Goldman Sachs said companies positioned to benefit from long-term structural growth trends are likely to continue attracting investor support, although geopolitical developments and AI market dynamics could affect how current investments are valued.

The bank added that companies with strong balance sheets and consistent shareholder return strategies should continue to command premium valuations.

Limited buyback growth could also increase the scarcity value of companies actively returning capital to investors, while elevated borrowing costs may further reward financially stronger businesses.

HSBC has revised higher its silver price outlook for 2026 and 2027, though the bank continues to believe the metal’s upside potential could remain constrained over the longer term.

The bank now forecasts average silver prices of $75 per troy ounce in 2026 and $68 per ounce in 2027, compared with earlier projections of $68.25 and $57.

Record Rally Driven by Safe-Haven Buying

Silver climbed to an all-time nominal high of $121 per ounce in late January as investors piled into safe-haven assets amid geopolitical tensions, tariff concerns and surging gold prices. Tight market conditions also contributed to the rally.

Prices later dropped sharply to around $64 per ounce in early February after a stronger U.S. dollar and weaker gold prices pressured the market, although silver later rebounded to above $86 per ounce.

HSBC Expects Market Deficits to Shrink

Despite raising its forecasts, HSBC said narrowing supply shortages and weaker end-market demand should limit the possibility of prolonged price spikes.

The bank estimates that the global silver deficit will decline from 143 million ounces in 2025 to 73 million ounces in 2026, before narrowing further to 25 million ounces in 2027 as mining activity and recycling volumes increase.

“Moderating deficits, in our view, will not be sufficient to propel silver sharply higher for prolonged periods,” said James Steel, HSBC’s chief precious metals analyst.

Industrial Demand Seen Softening Further

Industrial usage, which represents the largest component of silver demand, fell to 657 million ounces in 2025 from a record 679 million ounces a year earlier.

HSBC said manufacturers are increasingly attempting to reduce silver usage or switch to alternative materials because of elevated prices, a trend the bank expects to continue in the coming years.

The bank projects industrial demand will ease to 642 million ounces in 2026 and 618 million ounces in 2027, while jewellery demand is expected to decline to 157 million ounces from 189 million ounces.

Supply Growth May Help Stabilize the Market

HSBC expects mine production to remain relatively stable at 848 million ounces in 2026 before increasing to 868 million ounces in 2027.

Recycled silver supply is also projected to rise, reaching 216 million ounces this year compared with 197 million ounces in 2025.

Dollar Outlook and Geopolitical Risks Could Still Support Prices

According to James Steel, expectations for a softer dollar and ongoing geopolitical uncertainty may continue to provide some support for silver prices.

Still, he warned that “the gold:silver ratio is likely to widen, allowing silver to ease even if gold rallies.”

HSBC’s year-end silver targets stand at $70 per ounce for 2026 and $65 per ounce for 2027.

Federal Reserve may soon have to abandon its dovish stance and potentially shift toward tighter monetary policy as inflation remains persistent and the U.S. labor market continues to hold firm, according to Yardeni Research.

The research firm said prospects for interest rate cuts in 2026 are now “essentially off the table,” citing renewed inflation pressures, inflation staying above the Fed’s 2% target for five consecutive years, rising costs linked to the expansion of AI infrastructure, and continued labor market stability.

Investors Eye June Fed Meeting for Policy Shift

Yardeni Research said financial markets increasingly view the Federal Open Market Committee meeting on June 16-17 as the likely moment when policymakers officially remove their easing bias.

The firm pointed out that the two-year Treasury yield has already climbed above the effective federal funds rate, which it said may indicate current policy settings are no longer restrictive enough to slow inflation.

Producer Price Data Strengthens Hawkish Outlook

The shift in expectations was reinforced by April’s producer price index report, according to Yardeni.

Final demand producer prices rose 1.4% from the previous month and 6.0% from a year earlier, representing the fastest annual increase since December 2022 and coming in well above market expectations.

Inflationary pressures in transportation intensified as truck freight costs jumped 8.1% month over month, the sharpest increase since 2009, while service-sector prices recorded their largest monthly gain in four years.

Firm Still Expects Limited Fed Moves This Year

Despite adopting a more hawkish tone, Yardeni Research said it still expects a “none-and-done” scenario for the remainder of the year, implying the Fed could hold rates steady without further policy action.

The firm said moderating wage growth, productivity gains helping contain labor expenses, and stable long-term inflation expectations could help offset inflation risks.

Treasury Yields Seen Climbing Further

Nevertheless, Yardeni warned that the possibility of a future rate increase is continuing to rise.

The firm also forecast that the yield on the 10-year U.S. Treasury note could move toward 4.60% in the near term.