Landore declared that it continues to encounter wide zones of gold mineralisation, including high grade intersections, at its BAM East Gold project at its Junior Lake property in Ontario, Canada. The business noted that one particular hole showed a width of 18.79 metres at 3.65 grams per tonne of gold.

Landore said that the spring/summer drilling campaign is now drawing to a close, the mining play having drilled a total 59 holes to date totalling a length of 9,920 metres.

Chief executive Bill Humphries said: “I am very pleased with the results to date from this current drilling campaign steadily advancing the Inferred resource to Indicated Category together with extending the delineated resource to the east and west to 1,000 metres in length.”

He added: “Indications are that the BAM East Gold deposit has the potential for substantial growth.” 

Landore also noted that it has completed a review of the previously discovered gold occurrences along the 30km Greenstone belt which crosses its Junior Lake property. This study confirmed that several of these prospects “were similar in geology and mineralisation to the BAM East Gold Deposit highlighting the potential for other similar deposits along this trend,” the firm said.

And Landore advised that it will launch an “extensive exploration and geophysics campaign along this trend… aimed at identifying additional gold prospects,” once the current drilling programme draws to a close.

Exciting, but not without risk

Investing in early-stage explorers is always risky business, of course. While Landore is clearly making good progress with its very exciting project, the timings and size of potential payloads can never be guaranteed.

And Landore is not drawing down revenues as yet. These rang in at £1.13m versus £859,302 in 2015 and the company saw post-tax losses rise to £1.72m last year from £1.54m in the prior period as exploration costs climbed.

Clearly it may not be suitable for risk-averse investors. But brave share pickers tempted to take the plunge could literally and metaphorically strike gold should work at the company’s Canadian assets go to plan.

A stylish growth share

I am certainly convinced that JD Sports Fashion (LSE: JD) has what it takes to deliver dynamite shareholder returns in the years ahead, its overseas footprint providing ample growth potential irrespective of tougher conditions in the company’s UK marketplace.

The retail colossus saw revenues rocket 31% in the year to January 2017, to £2.38bn, it advised in April. This result powered adjusted pre-tax profit 56% higher to £244.8bn. And I reckon JD’s next set of financials due tomorrow (first-quarter numbers are slated for release) could drive its share price to the stars once again.

The City certainly expects earnings to keep chugging northwards, and the ‘King of Trainers’ is anticipated to follow estimated earnings growth of 14% in fiscal 2018 with an additional 10% rise the following year. Given the success of JD’s ambitious, multi-year expansion strategy, I reckon a subsequent forward P/E ratio of 18.2 times is very good value for money.

The post 2 stocks that could deliver blistering earnings growth appeared first on The Twelfth Magpie.

More reading

• Still stubbornly in pennies, will the JD Sports share price hit £1 again?
• Your ISA allowance is waiting! 3 dirt-cheap stocks to consider right now
• See what £12,000 in explosive JD Sports shares 1 month ago is worth today
• 2 FTSE 100 bargain stocks to buy in June?

Royston Wild has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Shares of Landore Resources (LSE: LND) have rocketed up 200% today to 2.26p. The AIM-listed mineral explorer reported a “significant gold discovery” on its flagship Junior Lake Property in Ontario, Canada.

Landore said the discovery was made as a result of follow up drilling on the prospect reported last month. Latest drilling indicated a wider gold mineralised zone with higher grade intersections, suggesting “the mineralisation could be coalescing with depth”. Meanwhile, mineralisation near the surface has potential for initial development as “a low cost, bulk tonnage, open pit operation”.

Clearly, this is good news, and should help the company raise further funding. Landore has no debt and last raised £656,820 at 0.6p a share in October, compared with the current price of 2p. So, in a reasonably strong position to progress the project, and with its operations in Canada (none of the geo-political risk of many junior explorers in far-flung places), Landore could be worth a closer look by investors interested in what is one of the more speculative sectors of the stock market.

Fall overdone

Shares of Sepura (LSE: SEPU) have dived 30% to 138p, following the release of a trading update ahead of results for the company’s financial year ended 1 April. The group, which designs, manufactures and supplies digital radios, infrastructure and applications for professional mobile radio (PMR) users, said earnings for the year will be below expectations.

Reasons given for the miss were two “significant opportunities” failing to close before the year end, weakness in a couple of areas of the group’s business, and also a hefty adverse impact from foreign exchange movements. Year-end net debt has increased significantly, mainly due to working capital expansion resulting from the contract delays and slower debtor collection.

The good news is that Sepura’s debt providers ‎have waived any potential breach of year-end covenants, presumably on the strength of the company’s “particularly strong trading” during the final weeks of the year, and management’s expectation that the two significant opportunities will close imminently and the working capital expansion will unwind.

Based on 2016/17 analyst earnings expectations and following today’s dive in the shares, Sepura is trading on a price-to-earnings (P/E) ratio of less than 12. For a company that had previously been averaging annual earnings growth in excess of 20%, the fall appears overdone in light of what seem to have been largely short-term issues.

Shareholder revolt

There’s a right old ding-dong going on at Lakehouse (LSE: LAKE). The support services company, which is focused on the UK public sector, listed on the stock market at 89p little more than a year ago.

The chairman was “delighted” to report maiden results on 10 December, and said: “The Board remains confident of its expectations for the current year and the future”. Less than eight weeks later, Lakehouse issued a profit warning, which saw its shares crash 58% to 35p.

A shareholder revolt is being led by well-known small-cap fund manager Mark Slater and Lakehouse founder Steve Rawlings, who have requisitioned a general meeting on 19 April. The requisitionists’ proposals include kicking the three current non-executive directors off the board and replacing them with Rawlings and two others.

Referring to the current board’s “disastrous stewardship” of Lakehouse, the requisitionists reckon the proposed new non-execs will be able to “identify quickly action that is needed and to develop, with the executives, a strategy to restore shareholder value”.

In a statement today, the Lakehouse incumbents reiterated their recommendation to shareholders to vote against the requisitionists’ proposals. With the company in turmoil, this appears to be a stock for investors to watch for the time being.

The post Why Are Landore Resources Ltd., Sepura Plc & Lakehouse PLC Making Waves Today? appeared first on The Twelfth Magpie.

More reading

• What investors need to know about the new 22% Stocks and Shares ISA tax
• By July 2027, BAE Systems shares could turn £5,000 into…
• The £15bn defence splurge that could send UK shares soaring in July
• Up 446% in 12 months! What’s next for the Ceres Power share price?
• How much is needed in an ISA to unlock £1,220 of passive income a year?

G A Chester has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.