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UK equities edged higher on Friday, snapping a two-session decline, while sterling remained under pressure against the US dollar. Early trading was shaped by merger speculation in the mining sector and updates from several large-cap UK corporates.

By 08:23 GMT, the FTSE 100 index was up around 0.3%, while the pound slipped 0.07% against the dollar to roughly 1.34. Across Europe, Germany’s DAX was broadly flat, while France’s CAC 40 advanced about 0.6%.

Glencore and Rio Tinto confirm early-stage merger discussions

Glencore (LSE:GLEN) and Rio Tinto (LSE:RIO) confirmed they are holding preliminary discussions over a possible combination involving some or all of their businesses.

Both companies said there is no certainty that a transaction will proceed, but indicated that any deal could take the form of a court-approved scheme of arrangement under which Rio Tinto would acquire Glencore. In line with UK takeover regulations, Rio Tinto must either announce a firm offer or step away by 5 February.

Market commentators suggested a potential transaction could be driven by Rio Tinto’s interest in expanding its copper exposure, potentially gaining access to assets such as Glencore’s Collahuasi and Antamina mines, alongside a broader pipeline of growth projects. For Glencore, analysts noted a deal could offer an exit route for major shareholders and allow a sharper strategic focus on its marketing and trading operations.

Sainsbury’s upgrades cash flow outlook after festive boost

J Sainsbury plc (LSE:SBRY) lifted its cash flow guidance after reporting strong Christmas trading, underpinned by grocery-led growth.

The retailer now expects retail free cash flow to exceed £550 million for the current financial year, up from its previous forecast. Over the 16 weeks to 3 January, total retail sales excluding fuel rose 3.9% year on year, while like-for-like sales increased 3.4%.

Unite Group trades in line, reiterates full-year guidance

Unite Group plc (LSE:UTG) said trading remains in line with board expectations, as the student accommodation provider reaffirmed its full-year outlook.

The group maintained adjusted earnings per share guidance of 47.5p to 48.25p for the 2025 financial year. Fourth-quarter performance met expectations, supported by around 1p of non-recurring management fee income from a university joint venture. Unite also highlighted a restructuring completed late in the year, delivering an estimated 20% reduction in head-office staff costs, alongside steady demand for the 2026/27 academic year despite modest valuation declines in the fourth quarter.

IAG confirms CFO transition plan

International Consolidated Airlines Group (LSE:IAG) announced that Chief Financial Officer Nicholas Cadbury will step down and leave the group in mid-2026.

He will be succeeded by José Antonio Barrionuevo, who currently serves as Chief Financial and Transformation Officer at British Airways. The company said the transition reflects a planned succession process, with Barrionuevo expected to take on the group CFO role following Cadbury’s departure.

Strategic Minerals plc (LSE:SML) has reported a landmark year in 2025, supported by strong operating performance at its Cobre magnetite business, which generated reliable cash flow and enabled accelerated progress across its wider project portfolio.

At the Cobre operation in New Mexico, Strategic Minerals recorded its third-highest annual ore sales in the past 14 years, delivering revenue of approximately US$4.23 million. The steady cash generation from Cobre has provided the financial foundation for the group’s growth strategy, particularly the advancement of its flagship Redmoor tungsten-tin-copper project in Cornwall.

At Redmoor, the company reported high-grade drilling results, encouraging metallurgical test work, and continued progress toward an updated mineral resource estimate, which is expected in early 2026. Management said these developments further underline Redmoor’s position as one of the highest-grade undeveloped tungsten deposits in Europe, strengthening its strategic relevance amid growing Western demand for critical minerals.

Corporate momentum during the year was also reflected in a sharp re-rating of the shares, with the stock rising around 470% on AIM. In addition, Strategic Minerals secured a UK government grant of approximately £764,000 to help fast-track Redmoor toward the pre-feasibility stage, alongside increased engagement with investors.

Outside the UK, the company moved to monetise its Australian assets by agreeing a staged A$9 million sale of the Leigh Creek Copper Mine to Cuprum Metals. Proceeds from the transaction are expected to further support the group’s focus on Redmoor, while streamlining the portfolio.

Strategic Minerals ended 2025 with cash of around US$0.78 million, reflecting significant reinvestment into exploration activities in Cornwall. Management described the year as a strategic pivot, using Cobre’s cash flow to develop Redmoor into a potentially important Western supply source of tungsten, tin, and copper.

While the company’s outlook is underpinned by strong corporate progress and a recovery in financial performance, valuation metrics and moderate technical momentum suggest some caution. The absence of detailed earnings guidance also limits visibility on near-term performance.

More about Strategic Minerals plc

Strategic Minerals plc is an AIM-quoted international mining and exploration company with operations in the UK, the United States, and Australia. Its core assets include the Redmoor tungsten-tin-copper project in Cornwall, the Cobre magnetite operation in New Mexico, and the Leigh Creek Copper Mine in South Australia, providing exposure to critical and base metals with a focus on supplying strategically important minerals to Western markets.

Amedeo Air Four Plus Limited (LSE:AA4) has declared an interim dividend of 2.00 pence per ordinary share, reinforcing its income-focused investment strategy.

The company said the shares will trade ex-dividend on 15 January 2026, with the dividend payable on or around 31 January 2026 to shareholders on the register as at 16 January 2026. The distribution highlights management’s confidence in the underlying cash generation of its aircraft leasing portfolio, despite continued volatility across the global aviation sector.

From a financial standpoint, Amedeo Air Four Plus benefits from strong cash flow and a materially strengthened balance sheet, having eliminated debt during 2025. Valuation metrics remain attractive, supported by a low earnings multiple and a high dividend yield. Technical indicators are also supportive, with the share price trading above key moving averages. These positives are partially offset by softer revenue momentum and an expected normalisation of earnings compared with the 2023 peak.

More about Amedeo Air Four Plus Limited

Amedeo Air Four Plus Limited is a Guernsey-domiciled investment company listed on the Specialist Fund Segment of the London Stock Exchange. The group focuses on generating income and capital returns for shareholders through the acquisition, leasing, and eventual disposal of commercial aircraft, leasing assets to airlines under long-term contracts.

Bluebird Mining Ventures Ltd (LSE:BMV) has reported increasing inbound engagement from institutional and strategic counterparties around its gold streaming and treasury strategy, with particular attention on tokenised and digitally settled gold structures. Management said evolving macro conditions, alongside the convergence of digital asset infrastructure with physical gold markets, are enhancing the appeal of gold-linked investment models.

To support innovation around data and analytics, Bluebird has entered into a strategic technology partnership with affiliated clean energy and AI infrastructure group The BE Company. The collaboration will provide access to high-performance computing, data infrastructure, and research and development capabilities for advanced geological and subsurface analysis. The board emphasised that these initiatives are supportive in nature and do not detract from the company’s primary focus on gold streaming.

Alongside these developments, Bluebird has restructured its planned equity arrangements. Previously announced subscription facilities involving management and external investors have been withdrawn and replaced with a new share incentive trust. Under this structure, CEO-owned Skylake Management will subscribe for 650 million shares at a total cost of £3.25 million on a staged, fully paid basis. The shares will be held in trust, carry no voting rights, and are intended to fund seconded services in place of cash remuneration while also providing working capital flexibility. Importantly, the changes leave the company’s fully diluted share capital unchanged.

The decision to cancel a proposed warrant acquisition by Skylake reflects the evolving nature of Bluebird’s capital structure discussions. The board described the revised trust-based approach as a way to better align incentives, preserve balance-sheet discipline, and support scalable growth through selective partnerships across the gold and digital infrastructure landscape.

Despite strategic momentum, Bluebird’s near-term outlook remains constrained by financial fundamentals. The company is pre-revenue, continues to incur losses, and reports negative operating and free cash flow. While low leverage offers some balance-sheet support, bearish technical indicators and the absence of earnings or dividends continue to weigh on valuation sentiment.

More about Bluebird Mining Ventures Ltd

Bluebird Mining Ventures Ltd is a London-listed gold streaming and treasury company focused on building and managing a gold-backed treasury through streaming agreements. Its model provides exposure to physical gold without the operational and capital intensity of mining, targeting multi-year gold streams across the ore concentrate-to-bullion value chain. The company emphasises disciplined capital allocation and prudent treasury management to deliver long-term shareholder value.

Blencowe Resources Plc (LSE:BRES) has reported further encouraging drill results from the Beehive deposit within its Orom-Cross graphite project in Uganda, reinforcing the asset’s potential to support large-scale, long-term production.

Two recently completed deep drill holes at Beehive intersected substantial mineralised zones of approximately 90 to 95 metres, with several high-grade intervals starting close to surface and remaining open at depth. Blencowe said these results build on earlier drilling success at Beehive and complement data from nearby deposits, including Iyan, Northern Syncline, and Camp Lode.

Taken together, the growing body of geological evidence points to Orom-Cross hosting a broad, continuous graphite system with the scale to underpin multi-decade mine life. The company believes this significantly enhances the project’s attractiveness to strategic partners and institutional investors, particularly as demand for secure, long-term graphite supply continues to rise.

Blencowe is currently awaiting assay results from more than 180 additional shallow drill holes, which are expected to further define the size and grade distribution of the resource. At the same time, the company is advancing funding discussions as it positions Orom-Cross as a globally competitive, low-cost graphite development.

Despite the operational progress, Blencowe continues to face financial challenges, including a lack of revenue, ongoing losses, and negative cash flow. While recent corporate activity and strategic engagement provide some longer-term optionality, these financial constraints remain a key factor influencing near-term sentiment.

More about Blencowe Resources Plc

Blencowe Resources Plc is a London-listed mining and exploration company focused on the development of the Orom-Cross graphite project in Uganda. The project is designed around large, near-surface graphite deposits, with the ambition of becoming a low-cost, long-life producer supplying high-quality graphite to global industrial and battery-related markets.

Clarkson PLC (LSE:CKN) has indicated a robust financial performance for 2025, with underlying profit before tax for the year ended 31 December 2025 now expected to be no less than £90 million, reflecting a notably stronger second half.

The trading update highlights the resilience of Clarkson’s diversified business model across shipping and offshore services. Management said the group continues to deliver consistent earnings and cash generation, supported by broad exposure to global shipping markets and disciplined capital allocation. This performance underpins Clarkson’s long-standing record of dividend growth and its ongoing investment strategy aimed at capturing opportunities across the shipping cycle.

From a market perspective, Clarkson’s financial profile remains strong, with solid revenue and profit momentum backed by a healthy balance sheet. Technical indicators point to a positive trend in the shares, although some overbought signals suggest a degree of near-term caution. Valuation metrics are viewed as reasonable, with an attractive dividend yield, while recent insider share purchases have added further confidence in the group’s outlook.

More about Clarkson PLC

Clarkson PLC is a FTSE 250-listed company and the world’s leading provider of integrated services and investment banking capabilities to the shipping and offshore sectors. Founded in 1852, the group offers shipbroking, market research, logistics support, and full investment banking services across all major shipping and offshore markets. Clarkson employs more than 2,100 people in over 60 offices worldwide and has delivered 22 consecutive years of dividend growth, supported by strong cash generation and a resilient balance sheet.

ValiRx plc (LSE:VAL) has signed a nine-month Evaluation and Material Transfer Agreement with McGill University and IRICoR to evaluate a second-generation, orally available RNA helicase inhibitor.

Under the agreement, ValiRx’s subsidiary Inaphaea Biolabs will conduct studies to confirm target engagement and potency. Inaphaea will retain ownership of all data generated during the evaluation phase, strengthening ValiRx’s control over the scientific outputs of the programme.

As part of the structure, IRICoR intends to establish a new Canadian entity, NewCo, to commercialise the evaluation results alongside relevant background intellectual property. ValiRx will hold an option to license the programme into NewCo in return for a 15% equity interest and may also provide up to £2 million in seed funding. Alternatively, should it choose not to proceed, ValiRx would be entitled to a 1.5x return on its evaluation investment.

Management said the deal is designed to promote asset-level development while limiting group-level dilution, attracting external capital, and preserving multiple strategic routes to value creation. The structure also provides flexibility to pursue opportunities across both human and veterinary health markets.

Despite the strategic rationale, ValiRx continues to face financial headwinds, including ongoing losses and reliance on external funding. Market indicators point to a generally bearish technical trend, with valuation remaining constrained by negative earnings and the absence of dividend support.

More about ValiRx plc

ValiRx plc is an AIM-listed life sciences company focused on early-stage cancer therapeutics and women’s health. Through a network of subsidiaries and collaborations with academic and research institutions, the group aims to accelerate the progression of novel drug candidates from pre-clinical research to clinic-ready assets, with a strategy centred on efficient development and eventual partnering or out-licensing.

Eden Research plc (LSE:EDEN) has achieved a key regulatory milestone after receiving approval in Chile for its fungicide Novellus+, marking the company’s first authorisation in South America.

The approval allows Novellus+ to be used on both wine and table grapes to combat grey mould and powdery mildew. The product will be marketed exclusively in Chile by Sipcam Chile SpA. Novellus+ provides residue-free disease control and can be applied up to one day before harvest, an attribute that aligns well with export-focused grape producers operating under strict residue limits.

Chile represents a strategically important market for Eden, given its position as one of the world’s leading exporters of wine and table grapes and its increasing adoption of biological and sustainable crop protection solutions. The authorisation gives Eden direct access to a sizeable and growing market while reinforcing its exposure to regions where regulators and growers are actively encouraging reduced reliance on conventional chemical fungicides.

Eden said the approval supports its longer-term growth strategy, with plans to expand the use of Novellus+ into other high-value crops in Chile over time. While the company continues to report revenue growth, its financial outlook remains constrained by ongoing profitability and cash flow pressures. Short-term technical indicators point to positive momentum, though elevated valuation risks persist due to losses and the absence of dividend income.

More about Eden Research plc

Eden Research plc is an AIM-listed agricultural technology company focused on the development of sustainable biopesticide and biocontrol products. Its portfolio is designed to deliver environmentally friendly, residue-free crop protection solutions for high-value crops, addressing increasing regulatory, consumer, and exporter demand for biological alternatives to traditional chemical pesticides.