Author: TSX Stocks

JOHANNESBURG (miningweekly.com) – The reverse listing of Big Tree Copper into SHiP Copper Company on the AltX of the Johannesburg Stock Exchange in October is expected to raise between R60-million and R250-million for the ramping up of combined production to 10 000 t/y of copper in the next three years.

SHiP, run by Shirley Hayes, is effectively taking over Big Tree Copper, run by Jan Nelson, resulting in SHiP continuing to operate and develop copper mines and Big Tree Copper continuing to recover copper from hard-rock copper dumps and produce copper plate, with all assets Northern Cape-based.

Big Tree Copper has a 15- to 20-year life just on the material being processed at current production rates. In addition, it is looking at developing the Carolusberg tailings dam, which has got about 40 000 t of recoverable copper in it that was mined in the old days by Newmont.

“We want to build a company in the next three years to produce 10 000 t of copper per annum. That will see us having at least two operations that will be treating or producing copper from oxides and we want to have at least the Rietberg and the Jubilee openpit going so that we’ll be producing copper from those two mines as well. If we can achieve that, it will be a very good outcome for us, our shareholders and also for the communities in the area,” Nelson told Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

Big Tree Cooper produces and exports one-meter by one-meter copper plate that is 6 cm thick. Each plate weighs about 38 kg per plate and contains 99.89% copper in an area where the copper is very pure.

“Shareholders will get exposure to a copper company with great growth,” said Nelson, whose company focuses on the restoration of the natural habitat in South Africa’s Northern Cape town of Nababeep, where twentieth-century copper mining negatively impacted an ecologically sensitive environment. 

Through the development of its own technology, the firm has commenced recycling previously dumped and mining waste to produce premium grade copper. This is done through a technologically advanced metallurgical process that delivers commercial viability while restoring the original landscape. 

Big Tree Copper is also philosophically bound to core principles of the United Nations Sustainable Development Goals and, after launching operations in November 2021, plans to engage with the community in revitalising aspects of the local socio-economic environment, decimated when mining operations ceased a decade ago, on a sustainable basis.

Mining Weekly put these questions to Nelson:

Big Tree Copper has been producing A-grade copper through a solvent extraction electrowinning (SX-EW) plant designed and built very innovatively by yourselves. What is your latest level of monthly production and is it meeting your targets?  

Nelson: Yes, it has. We’re currently building up from 30 t of copper production per month to about 90 t of copper production a month in the next two to three months. We’re on line with our production targets, so we’re quite happy with what we’ve achieved.

How much power do you consume and do you have any plans to self-generate your own clean power?

Certainly, with load-shedding Stage 6 that we’ve had, our plan is to look at that once we’ve listed in October to raise money for our own solar plant. We’ve currently got three diesel generators that are backup whenever we’ve got power outages and we’re now load-shedding 10 hours to 12 hours a day and that just isn’t sustainable for a small business like ours, so I think we’re going to have to go the route of raising money and building our own clean power plant for the future.

How green and clean do you intend being?

As green as we can. Wherever we think there’s an opportunity to improve, or to make use of clean energy, I think we will. The company is founded on that fact that we clean old mine dumps and restore the old excavations with backfill that’s neutralised, and produce copper plates – that’s part of our DNA and wherever we can, we will drive that.

How is your offtake agreement going with Noble Metals?

That’s in place and it’s running fine.

Is the business financially strong?

Yes, it is. Our costs are quite low because there’s no mining involved, so we’re making a profit and in the same instance, we’ve been looking at optimising and growing the business.

How many people do you employ and how is the local community benefiting from your venture?

We’ve got about 160 people that currently work for us and as we scale up, that figure will probably rise to about 300 to 400 people over the next two years. There are about 5 000 to 6000 people that live in Nababeep. There’s about a 90% unemployment rate, so we’ve made quite a big impact, although we’re a small business, by giving these people jobs, and there’s a lot of ancillary businesses that have developed as a result of our activity, so I think it’s made a huge impact in an area where there hasn’t been employment, or any prospect of economic development, so we’re very proud of what we’ve done there.

How much valuable material is there in the area and do you foresee many other dump mining possibilities?

We’ve got about a 15- to 20-year life just on the material we’re processing at our current production rates. In addition, we’re looking at the Carolusberg tailings dam, which has got about 40 000 t of recoverable copper in it that was mined in the old days by Newmont. That is an expansion area we’re looking at – it will further increase the life. Then, we are looking to list in October where we are part of a reverse takeover by the SHiP Mining Company and SHiP will bring a lot of openpit material to our current oxide production as well.

Are your agricultural plans still in place?

Yes. We’re looking at the water. We’ve done all the studies. There’s about half a gram of copper per litre of water and we’re looking to extract that as well and then we’ll have a lot of clean water available every month and that we’re looking to apply to agricultural projects in the area, which will create further employment.

And now for the big issue, your listing. Where and why are you listing and will you be raising capital in listing?

We’re quite excited about that. That’s part of the reverse takeover with SHiP Mining, which will make us a company that will, in the next three years, ramp up production from the current 1 500 t of copper to 10 000 t of copper per annum, so we’re looking to list on the AltX of the Johannesburg Stock Exchange and we will be raising anywhere between R60-million and R250-million to develop some of the mining projects in SHiP when we move forward, so very excited about that.

Give me more about SHiP and more background into this whole wonderful enterprise, where you didn’t actually need a mining licence but could go ahead with other ways of getting permission to mine?

That’s correct. Current operations don’t fall under the Mineral and Petroleum Resources Development Act (MPRDA) because we’re dealing with movable rock. But in terms of the reverse takeover, SHiP has got ten mines that it can develop in about 60 prospects. SHiP is run by Shirley Hayes and SHiP is effectively taking us over. They bring a lot of production and in terms of developing those mines, we will fall under the MPRDA. Big Tree Copper, which will change its name to Copper 360, will be two businesses. One business that will do copper mining and the other business that will do the rock moving and retreatment as we’re doing now, but it’ll make us probably one of South Africa’s biggest midtier copper producers, if not the only one, so I think that bodes very well for the area and for us.

Why is copper such a good metal to be in?

There’s a big drive around electric vehicle (EV) development but if we EVs, just in terms of all the infrastructure upgrades that are taking place in America, in Europe, you need copper for all of that infrastructure development, and there just isn’t enough copper being produced in the world, so that is good for companies like ourselves which are producing copper. If you then on top of that add the EVs, then it really is just a good space to be in. Copper has been under a bit of pressure, but that’s mainly been as a result of the lockdown in China. But we’re expecting the prices to go back to the $10 000/t to $12 000/t level.

What has happened to the Canadian link that you had?

TSX Venture Exchange-listed Handa Mining Corporation was one of the initial founders of Big Tree Copper, and they are still a 10% to 12% shareholder in Big Tree Copper, but they will just remain a passive shareholder. They’re not actively involved in the growth of the business.

When you list on the AltX of the JSE, under what name will you be listed?

We’re planning to list by the beginning of October, obviously subject to the process we have to go through at the Johannesburg Stock Exchange, because we have to submit all our documents and that can take a little bit longer, but we comfortably expect to list by the beginning of October. We did look at the Cape Town Stock Exchange, but at the moment it’s just – and I think it will change –  the JSE provides a much easier tradable platform in terms of the investors that invest in ourselves, and therefore we’ve chosen to go that route, because liquidity will be important for the company. The reason we’ve also chosen to list is that Coronation is a shareholder and one of the conditions of their investment in us was that we would list but we would also like the listing because it gives us an additional platform to raise capital to develop our mining operations with the reverse takeover that SHiP’s doing, and that you only get three institutions and the institutions do want you to be listed.

Have you sorted out in advance who’s going to take shares or will there be a retail element that will develop to get shares in your business?

We’ve done quite a bit of work on that and we’ve got some plans ready to build up a retail base as well. What we’ve realised is there’s a lot of people who want to invest in copper, but there’s no copper company that they can invest in, so we think we’ll garner quite a strong retail base as well.

What is your vision?

We want to build a company in the next three years to produce 10 000 t of copper per annum. That will see us having at least two operations that will be treating or producing copper from oxides and we want to have at least the Rietberg and the Jubilee openpit going so that we’ll be producing copper from those two mines as well. If we can achieve that, that will be a very good outcome for us, our shareholders and also for the communities in the area.

But there’s also that ‘b’ word, beneficiation. I mean you came in with this innovative way of processing the copper. How successful has that been and is it different to what we know from SX-EW?

It’s not that different from how other major producers do it but we’ve had a few tweaks. We, for example, I think are the only operation in the world that runs a filter press in addition to our solvent extraction. We’ve just with BASF implemented the testing of a new programme on the solvent extraction, which is a world first. It’s a programme that will help predict how your SX behaves and how you can optimise it, and if that’s successful, that that will actually be rolled out across the world.

What will that do to the copper plate that you produce for export?

We produce one-meter by one-meter copper plate that’s approximately 6 cm thick. They weigh about 38 kg per plate, and it’s A-grade copper, so it’s 99.89% pure copper. The copper in that area is very pure. There are no additional metals in the copper.

Is BASF’s involvement only as a developer of a programme?

BASF is developing this special programme on our plant. They’ve asked to test this programme on our plant, which is quite great for us, and if that works, and it looks like it will, then that will be rolled out to any other businesses that require this plant from BASF. We’re fortunate in that they’re developing it on our site, and we then gain the advantages of that technology that’s a world first.

Are your copper plates collected from your mine gate and then exported?

At this stage, that’s what will happen. We’re exporting, so there’s no plan at this stage for us to do anything else on the beneficiation side, but it’s certainly something I think we will look at as we move forward. Other companies have said that they will look at further beneficiation steps and I think as we grow – we’re just a bit small at this stage – we’ll certainly look at that because there are some great opportunities there.

What in your view should be the biggest takeaway from the fact that you guys are going to list in October?

We will give investors the only pure copper play in South Africa. Through Coronation, we are required to pay 30% of our pre-tax profits as a dividend, so shareholders will get exposure to a copper company with great growth that’s coming. I think great share price appreciation, and a dividend that will be declared every year, so I think that’s what shareholders can look forward to.

Besides Coronation, are there any other fairly sizable shareholders involved?

Not at the moment. It’s basically management and the current board that’s putting most of the capital. Coronation is the only big institutional shareholder at this stage, but certainly, with the listing, we’re looking at getting more institutional interest in the company.

Big Tree Copper is rehabilitating old mine dumps in the copper mining area founded in 1860 by the Okiep Copper Company.

The rock dumps were considered waste but on a closer inspection revealed the presence of considerable oxide-bearing copper that needed an SX-EW plant to extract.

By Adriano Marchese

Canadian dollar store retail chain Dollarama Inc. said that it intends to renew its buyback program to repurchase up to 7.5% of its public float over the course of a one-year period.

Dollarama said Tuesday it received approval from the Toronto Stock Exchange to renew its normal course issuer bid, or NCIB, to buy back up to 18.7 million of its shares starting July 7.

• FTSE 100 closes up 64 points

• Oil and gas biggest risers

• EasyJet COO resigns amid travel chaos

4.45pm: FTSE closes in the green

FTSE 100 closed firmly higher on Monday as commodity stocks did well and Wall Street was closed for the July 4 holiday.

Britain’s blue-chip benchmark closed up 64 points, or 0.89%, at 7,232.

“The FTSE 100 is around 1% higher, given a lift by oil and oil stocks as Europe enjoys a quiet session thanks to the US holiday,” said market analyst Chris Beauchamp from online trading platform IG in a note.

“European futures were looking strong at the beginning of the day but the session has seen continental Europe edge back while oil prices keep supporting the FTSE 100,” he added.

“A fresh surge in crude prices during the day has bolstered BP and Shell, providing hope that the UK leading index still has the power to outshine other indices. But as ever it is the absence of the US that is problematic – Wall Street has driven the selloffs this year, and today’s gains could easily slip away tomorrow.”

4pm: AO World reassures

AO World PLC (LSE:AO.) insisted its finances are nothing to worry about after a report from The Sunday Times said one of its credit insurers may be withdrawing support.

AO reassured investors that it had access to an £80mln credit facility and has been working on “actions to strengthen its balance sheet,” as it trades in line with expectations.  

Numis and Jeffries commented that Atradius, the credit insurance provider, had stopped its cover at the beginning of May, with the news first reported over the weekend.

Its shares crashed 18% to a two-year low of 55.7p on Monday afternoon.

Credit insurance usually protects companies if one of their customers goes bankrupt between delivery and payment, with limited cover often a worrying sign for cash flow.

AO has nosedived over 85% since its all-time high in January 2021, when its online sales were bolstered by pandemic-related spending.

3.17pm: Plummeting real wages leaves households ‘brutally exposed’

Fifteen years of languishing incomes have left households “brutally exposed” to the rising cost-of-living crisis, according to a Resolution Foundation report.

In the decade-and-a-half leading up to the pandemic, the average income of working-age families rose by just 0.7% per year. For context, it was on average 2.3% between 1961 and 2005.

Not only was this significantly slower wage growth than in prior decades but UK inflation reaching 40-year highs has further exacerbated this problem for households.  

The think tank Resolution reported that many families have not been able to save up the necessary amounts to comfortably live during times of such economic uncertainty.

2.31pm: Scandinavian airline SAS latest to announce strikes

Scandinavian airline SAS became the latest people carrier to confirm strikes after failing to reach an agreement with pilots.

It claimed the intended walkout was “devastating for SAS and puts the company’s future together with the jobs of thousands of colleagues at stake.”

Trade unions that represented approximately 1,000 SAS pilots said in June its members would refuse to work at one of the airline’s busiest times of the year after not agreeing upon a new collective labour agreement.

The airline said it was likely to provide refunds or tickets for a later date but admitted rebooking customers would be “highly limited.”

Meanwhile, various other airlines have announced large strikes during the peak summer holidays as travel chaos has shown little sign of easing.

Over 700 mostly check-in staff at Heathrow Airport have already voted to strike in the summer holidays, which is expected to severely disrupt family getaways.

Workers’ wages were slashed by 10% during the pandemic and their pay has remained at this level since. BA offered a one-off payment – equal to 10% of their salary – but the staff want the cut fully reversed.

The GMB and Unite unions have also been consulting engineers and call centre staff at Gatwick, Glasgow, Manchester and Newcastle on taking action.

Various strike talks at Britain’s biggest airline have been going on since the start of the year, with its share price taking a 35% hit in that period.

Onto the UK-listed budget airlines, Ryanair Holdings PLC (LSE:RYA) has already done or is expected to strike across several European countries.

Meanwhile, Spanish EasyJet PLC staff voted overwhelmingly in favour of action on many peak travel days this summer.

Both companies’ shares sunk over 20% in the last month as strike dates were confirmed.

1.50pm: EasyJet COO resigns amid travel chaos

EasyJet PLC chief operating officer Peter Bellew resigned following a turbulent few years for the budget airline, which most recently has seen strikes and staff shortages lead to cancelled flights.

Bellew reportedly stepped down on 1 July, EasyJet commented, with David Morgan, director of flight operations, taking his role temporarily.

Bellew will “pursue other business opportunities and in the meantime is committed to ensuring a smooth transition,” the company said.

Thousands of EasyJet flights already have been or will be delayed or cancelled amid significant staff shortages.

Although John Lundgren, chief executive, insisted it was “absolutely focused on delivering a safe and reliable operation this summer.”

This resignation was just a month after trade union Unite accused the airline of a “lack of leadership” and blamed Bellew for not “taking control of [the] situation.”

1.09pm: Sterling strengthens 

The pound strengthened on Monday after advancing away from two-week lows as investors await the Bank of England’s monetary policy plans on future interest rates later this week.

Sterling jumped 0.1% against the dollar to US$1.211, while it was also up by 0.1% against the euro to 86.08p.

Two of the monetary policy committee (MPC) members will speak this week, with chief economist Huw Pill and Catherine Mann expected to address strategies on Wednesday and Thursday respectively.

The pound last week ended its largest six-month drop since 2016, when the UK voted to leave the European Union, with the Sterling down over 10% compared to the dollar in 2022.

12.23pm: Fuel prices rise but wholesale costs fall

Fuel prices have continued flirting with record highs despite nearly a month of lower wholesale costs.

Petrol reached a new all-time high of 191.53p a litre on Sunday, while diesel was just 0.04p below its record at 199.03p a litre, on average, the AA said.

Although wholesale costs have been falling since the wake of the Jubilee weekend, with petrol costs for fuel retailers 10p lower last week compared with early June.

Diesel has experienced the same decline but not by the same magnitude.

Luke Bosdet, AA fuel spokesman, commented: “It is an outrage, plain and simple, that the fuel trade could be slashing petrol prices as the nation heads towards the holiday season, but isn’t.

“The retailers came up with an excuse that demand had fallen to 80% for some.

“Yet, last week, official statistics showed that petrol consumption is still at 94% of normal.”

11.37am: Pub numbers reach record low

English and Welsh pubs plummeted to their lowest levels on record as the hospitality sector’s woes showed little sign of easing.

In 2020, pubs were forced to close due to Covid-19 and many businesses lost out on over a year’s revenues. But now, in the wake of the pandemic, pubs are having to deal with surging energy prices, soaring wholesale costs and higher tax payments.

There were just 39,970 pubs in June – a reduction of over 7,000 since 2012, according to real estate consultancy Altus Group (TSX:AIF).

The West Midlands had the most pub closures in the first half of the year, at 28, while London and Eastern England were close behind with 24.

In 2019 – the year before the pandemic – the sector grew for the first time in a decade but the unpredictable events just a year later halted the growth.

J D Wetherspoon PLC, which has over 900 pubs in the whole of the UK and Ireland, saw its share price drop 0.6% to 631.5p.

10.50am: AO World drops

AO World PLC (LSE:AO.) (AO World PLC (LSE:AO.)) sunk 16% on Monday afternoon as investors got spooked by a weekend report that one of its credit insurers might be withdrawing support.

The Sunday Times suggested one of its suppliers might be cutting back on cover, which would force the white goods retailer to pay upfront for stock, raising concern about cash flow.

Shares fell 10.6p to 57.4p, valuing the business at £281mln.

AO sells home essentials including fridges, ovens and washing machines.

During the pandemic, AO boomed as lockdowns hit competitors such as Currys PLC (LSE:CURY) (Currys PLC (LSE:CURY)) and its share price rocketed.

But its value has crashed by over 85% from the all-time high seen in January 2021, when lockdowns and online spending were still rampant.

10.10am: Ryanair and Wizz Air passenger numbers rocket 

Now onto airlines, which in recent months have also been subject to mayhem, cancellations and delays on staff shortages.

Budget air carriers Ryanair Holdings PLC (LSE:RYA) and Wizz Air Holdings PLC (AIM:WIZZ) had mixed share price responses to surging June passenger numbers.

Ryanair said it carried 15.9mln people, which was triple the amount compared with the same month in 2021, while its load factor soared 95%.

Meanwhile, Wizz Air reported an increase in June passenger numbers of 180% to 4.3mln.

Although it must be noted, flying last summer was a headache and most potential holiday-goers were put off.

Many Covid-19 tests were required to fly in and out of the UK, pushing prices higher and demand lower.

On Monday morning, the non-UK-listed Ryanair climbed 3.7% in France, while Wizz Air dropped 3.1% on the London Stock Exchange.

9.30am: Campaigners cause chaos on the roads 

Drivers and commuters have experienced enough chaos on the road in recent weeks but there was a new reason for delays this time.

Campaigners against skyrocketing fuel prices blocked some motorways during Monday morning’s rush hour.

Protesters made a rolling blockade along the M4, heading towards the Prince of Wales bridge, with similar actions expected in Yorkshire and Essex.

Police warned of “serious disruption throughout the day,” with motorists advised to stay home if possible.

Howard Cox, founder of the FairFuelUK Campaign, said: “These are not just demonstrations against the record excruciatingly high petrol and diesel prices that rise each and every day. 

“They are also about the sickening chronic manipulation of pump prices and the complete lack of scrutiny by our out-of-touch government, in allowing unchecked petrol and diesel profiteering to run rife.”

8.55am: Oil and gas push FTSE higher

Almost an hour into open, the FTSE 100 was up 0.9%, or 65 points, as the main UK index echoed America’s positive end to last week.

The blue-chip index was led by giant oil and gas companies, with Harbour Energy PLC (LSE:HBR) stealing the headlines, having advanced 4.1% to 346.2p.

Its larger rivals, BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL), were not far behind at all in second and third place, after climbing 3.5% and 2.7% respectively.

Russ Mould, investment director at AJ Bell, said: “A small bounce back in the oil price was enough to give BP and Shell a lift and provide welcome support to the FTSE 100 index. 

“Oil supplies have been watched closely in recent weeks amid concerns about a slowdown in the global economy.

“Fundamentally supplies continue to be tight and there is still enough economic activity to stop oil prices slumping.”

American markets are closed on Monday for Independence Day, while European investors await eurozone inflation data later today.

7.20am: Footsie to rally

FTSE 100 was expected to rally after US markets perked up at the end of last week.

Financial spread betting firms were pencilling in gains of around fifty points for London’s blue-chip index a couple of hours before the open.

Wall Street is shut today for the 4th of July celebrations but for the rest of the week the news comes thick and fast ending with the monthly drama that is the US non-farm payrolls data on Friday.

The latest US quarterly corporate earnings also start to be published and Liberum is warning that this season is likely to be a lot worse than current forecasts suggest with worrying trends also for new orders.

“Our analysis suggests that earnings should be downgraded by some 13% in coming months but even that is unlikely to be enough,” it said.

The broker adds that orders in both Europe and the US are also now at levels indicating a recession, especially in the US.

“Going back 50 years, the only time we saw these levels was at the beginning of a recession and during the 1991 recession, we didn’t even see levels as low as this.

“Current readings of the US NOI not only indicate a recession, but that one is starting right now or may have already started.”

In the UK, Monday has little in the way of scheduled news, but, like in the US, it gets busy later in the week.

Flash manufacturing and services data on the economy will give an insight into the economy while the impact of rising inflation and squeezed incomes is also likely to figure prominently in updates from some big companies.

Retailers J Sainsbury and Currys, housebuilder Persimmon, bookmaker Entain and holiday group Jet 2 (read more) are among the household names issuing statements. 

6.50am: Early Markets – Asia / Australia

Asian shares were mixed on Monday with the Reserve Bank of Australia expected to lift the official interest rate to 1.35% at Tuesday’s board meeting. It is expected to rise to 2.35% by year’s end.

The central bank’s pivot to inflation fighting could spark a decline in mortgage lending of up to 40% in coming months, according to Swiss-based global investment bank UBS.

The Shanghai Composite in China gained 0.27% while Hong Kong’s Hang Seng index slipped 0.34%.

Japan’s Nikkei 225 was trading 0.83% higher but South Korea’s Kospi was on the backfoot, trading 0.50% lower.

Australia’s S&P/ASX200 advanced 1.1%, led by strong gains across the energy and real estate sectors.

READ OUR ASX REPORT HERE

By Adriano Marchese

Vermilion Energy Inc. said that the Toronto Stock Exchange has approved its plan to begin a buyback program for around 10% of its public float over the course of a one-year period.

On Monday, the Calgary, Alberta-based oil-and-gas producer said it will begin its normal course issuer bid, or NCIB, on July 6 in which it will aim to buy back up to 16.1 million shares in the 12-month period ending on July 5 of next year.

FTSE 100 climbs 80 points

Oil and gas biggest risers

US closed for Independence Day

Fuel prices have continued flirting with record highs despite nearly a month of lower wholesale costs.

Petrol reached a new all-time high of 191.53p a litre on Sunday, while diesel was just 0.04p below its record at 199.03p a litre, on average, the AA said.

Although wholesale costs have been falling since the wake of the Jubilee weekend, with petrol costs for fuel retailers 10p lower last week compared with early June.

Diesel has experienced the same decline but not by the same magnitude.

Luke Bosdet, AA fuel spokesman, commented: “It is an outrage, plain and simple, that the fuel trade could be slashing petrol prices as the nation heads towards the holiday season, but isn’t.

“The retailers came up with an excuse that demand had fallen to 80% for some.

“Yet, last week, official statistics showed that petrol consumption is still at 94% of normal.”

11.37am: Pub numbers reach record low

English and Welsh pubs plummeted to their lowest levels on record as the hospitality sector’s woes showed little sign of easing.

In 2020, pubs were forced to close due to Covid-19 and many businesses lost out on over a year’s revenues. But now, in the wake of the pandemic, pubs are having to deal with surging energy prices, soaring wholesale costs and higher tax payments.

There were just 39,970 pubs in June – a reduction of over 7,000 since 2012, according to real estate consultancy Altus Group (TSX:AIF).

The West Midlands had the most pub closures in the first half of the year, at 28, while London and Eastern England were close behind with 24.

In 2019 – the year before the pandemic – the sector grew for the first time in a decade but the unpredictable events just a year later halted the growth.

J D Wetherspoon PLC, which has over 900 pubs in the whole of the UK and Ireland, saw its share price drop 0.6% to 631.5p.

10.50am: AO World drops

AO World PLC (LSE:AO.) sunk 13% on Monday morning as investors worried about the finances of the company, with consumer confidence spiralling lower.

The consumer goods business revealed credit insurers will be withdrawing their support, potentially forcing AO to pay suppliers upfront for goods and causing concern for cash flow.

With shares down 9p to 59p a few hours into trade today, the business was valued at £281mln.

AO sells home essentials including fridges, ovens and washing machines.

During the pandemic, when some of its closest competitors like Currys PLC (LSE:CURY) closed their stores, AO’s share price rocketed amid strong performances.

The company has crashed over 85% since its all-time high seen in January 2021, when lockdowns and online spending were still rampant.

10.10am: Ryanair and Wizz Air passenger numbers rocket 

Now onto airlines, which in recent months have also been subject to mayhem, cancellations and delays on staff shortages.

Budget air carriers Ryanair Holdings PLC (LSE:RYA) and Wizz Air Holdings PLC (AIM:WIZZ) had mixed share price responses to surging June passenger numbers.

Ryanair said it carried 15.9mln people, which was triple the amount compared with the same month in 2021, while its load factor soared 95%.

Meanwhile, Wizz Air reported an increase in June passenger numbers of 180% to 4.3mln.

Although it must be noted, flying last summer was a headache and most potential holiday-goers were put off.

Many Covid-19 tests were required to fly in and out of the UK, pushing prices higher and demand lower.

On Monday morning, the non-UK-listed Ryanair climbed 3.7% in France, while Wizz Air dropped 3.1% on the London Stock Exchange.

9.30am: Campaigners cause chaos on the roads 

Drivers and commuters have experienced enough chaos on the road in recent weeks but there was a new reason for delays this time.

Campaigners against skyrocketing fuel prices blocked some motorways during Monday morning’s rush hour.

Protesters made a rolling blockade along the M4, heading towards the Prince of Wales bridge, with similar actions expected in Yorkshire and Essex.

Police warned of “serious disruption throughout the day,” with motorists advised to stay home if possible.

Howard Cox, founder of the FairFuelUK Campaign, said: “These are not just demonstrations against the record excruciatingly high petrol and diesel prices that rise each and every day. 

“They are also about the sickening chronic manipulation of pump prices and the complete lack of scrutiny by our out-of-touch government, in allowing unchecked petrol and diesel profiteering to run rife.”

8.55am: Oil and gas push FTSE higher

Almost an hour into open, the FTSE 100 was up 0.9%, or 65 points, as the main UK index echoed America’s positive end to last week.

The blue-chip index was led by giant oil and gas companies, with Harbour Energy PLC (LSE:HBR) stealing the headlines, having advanced 4.1% to 346.2p.

Its larger rivals, BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL), were not far behind at all in second and third place, after climbing 3.5% and 2.7% respectively.

Russ Mould, investment director at AJ Bell, said: “A small bounce back in the oil price was enough to give BP and Shell a lift and provide welcome support to the FTSE 100 index. 

“Oil supplies have been watched closely in recent weeks amid concerns about a slowdown in the global economy.

“Fundamentally supplies continue to be tight and there is still enough economic activity to stop oil prices slumping.”

American markets are closed on Monday for Independence Day, while European investors await eurozone inflation data later today.

7.20am: Footsie to rally

FTSE 100 was expected to rally after US markets perked up at the end of last week.

Financial spread betting firms were pencilling in gains of around fifty points for London’s blue-chip index a couple of hours before the open.

Wall Street is shut today for the 4th of July celebrations but for the rest of the week the news comes thick and fast ending with the monthly drama that is the US non-farm payrolls data on Friday.

The latest US quarterly corporate earnings also start to be published and Liberum is warning that this season is likely to be a lot worse than current forecasts suggest with worrying trends also for new orders.

“Our analysis suggests that earnings should be downgraded by some 13% in coming months but even that is unlikely to be enough,” it said.

The broker adds that orders in both Europe and the US are also now at levels indicating a recession, especially in the US.

“Going back 50 years, the only time we saw these levels was at the beginning of a recession and during the 1991 recession, we didn’t even see levels as low as this.

“Current readings of the US NOI not only indicate a recession, but that one is starting right now or may have already started.”

In the UK, Monday has little in the way of scheduled news, but, like in the US, it gets busy later in the week.

Flash manufacturing and services data on the economy will give an insight into the economy while the impact of rising inflation and squeezed incomes is also likely to figure prominently in updates from some big companies.

Retailers J Sainsbury and Currys, housebuilder Persimmon, bookmaker Entain and holiday group Jet 2 (read more) are among the household names issuing statements. 

6.50am: Early Markets – Asia / Australia

Asian shares were mixed on Monday with the Reserve Bank of Australia expected to lift the official interest rate to 1.35% at Tuesday’s board meeting. It is expected to rise to 2.35% by year’s end.

The central bank’s pivot to inflation fighting could spark a decline in mortgage lending of up to 40% in coming months, according to Swiss-based global investment bank UBS.

The Shanghai Composite in China gained 0.27% while Hong Kong’s Hang Seng index slipped 0.34%.

Japan’s Nikkei 225 was trading 0.83% higher but South Korea’s Kospi was on the backfoot, trading 0.50% lower.

Australia’s S&P/ASX200 advanced 1.1%, led by strong gains across the energy and real estate sectors.

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