A Quantum of success and a victory for old energy over renewables

On Jan 16, 2022

The FTSE AIM All-Share index rose a measly 2% or so in 2021 but even so there were some spectacular gains this year but also, unfortunately, some eye-watering losses

If 2020 on AIM was the year of Covid-diagnostic companies, 2021 was a great year for commodity plays.

That being said, the best performer on AIM’s junior market was Quantum Blockchain Technologies PLC (AIM:QBT), which rose by an astonishing 975% during the year, with much of that gain coming from two rapid spurts.

The first came in February, when the company, still known at that time as Clear Leisure, completed the restructuring of its debt and did two capital raises in quick succession to raise funds to substantially increase the computing power in its cryptocurrencies data centre.

The second surge came in October after the company filed its first patent application for its ‘ASIC UltraBoost’ technology used in Bitcoin mining.

Quantum said that ASIC UltraBoost optimises Bitcoin mining by eliminating redundant computation in a key part of the algorithm, resulting in faster and more efficient mining. The plan is to use the technology in the company’s proprietary implementations of the algorithm.

So much for Bitcoin mining, what about the mining that involves picks and shovels?

Premier African Minerals Ltd (AIM:PREM) was the best of the AIM mining bunch with a 222% increase, spurred by the company receiving the formal grant of an exclusive prospecting order covering its Zulu Lithium and Tantalum claims in Zimbabwe.

Xtract Resources PLC (LSE:XTR), which tripled in price, was AIM’s gold mining champion on the back of its rewarding Bushranger project drilling programme, which sent the shares as high as 8.5p. They’ve since come off to 5.25p but few shareholders are complaining and the shares have actually had a good second half of the year.

If mining plays grabbed a bit of the spotlight, hydrocarbon plays were definitely stage centre, especially Zephyr Energy PLC, Petroneft Resources PLC (AIM:PTR, OTC:PNFTF) and 88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF).

Zephyr Energy PLC blew 723% higher after it became a producer through the acquisition of an interest in the Bakken Formation in North Dakota, US.

Investors paid just 2p per share in Zephyr’s £10mln share placing back in March; the shares now trade at around 7p.

Petroneft Resources PLC (AIM:PTR, OTC:PNFTF) gave Zephyr a good run for its money but the share price, which started the year at 0.7p and hit 4.61p in July, flagged in the final quarter ot around 3p.

Nevertheless, the oil & gas exploration and production company, operating in the Tomsk Oblast, Russian Federation, notched up a 385% gain as it upped its stake in licence 67, which contains two oil fields, Ledovoye and Cheremshanskoye. In 2016 Rhyder Scott calculated proved + probable reserves for the Ledovoye field of 14mln barrels and proved + probable + possible reserves of 17.4 mln barrels.

88 Energy rose 210% on the year to 1.42p but shareholders…