Introduction
Welcome to Spotlight, a bonus report which is distributed eight times a year alongside your digital copy of Shares
It provides small caps with a platform to tell their stories in their own words. This edition is dedicated to businesses powering the global economy, whether that be in mining, oil and gas, the renewables space, infrastructure or energy provision.
The company profiles are written by the businesses themselves rather than by Shares journalists. They pay a fee to get their message across to both existing shareholders and prospective investors.
These profiles are paidfor promotions and are not independent comment. As such, they cannot be considered unbiased. Equally, you are getting the inside track from the people who should best know the company and its strategy.
Some of the firms profiled in Spotlight will appear at our webinars and in-person events where you get to hear from management first hand.
Click here for details of upcoming events and how to register for free tickets.
Previous issues of Spotlight are available on our website
DISCLAIMER IMPORTANT
Shares Spotlight is a mix of articles, written by Shares magazine’s team of journalists, and company profiles. The latter are commercial presentations and, as such, are written by the companies in question and reproduced in good faith.
Members of staff may hold shares in some of the securities written about in this publication. This could create a conflict of interest.
Where such a conflict exists, it will be disclosed.
This publication contains information and ideas which are of interest to investors.
It does not provide advice in relation to investments or any other financial matters.
Comments in this publication must not be relied upon by readers when they make their investment decisions.
Investors who require advice should consult a properly qualified independent adviser. This publication, its staff and AJ Bell Media do not, under any circumstances, accept liability for losses suffered by readers as a result of their investment decisions.
Looking for investment ideas? Register today
29 April 2025 – 18.00
Companies presenting
EJF Investments
A closed-end fund that trades on the Specialist Fund Segment of the Main Market of London Stock Exchange. EJFI’s objective is to provide shareholders with attractive risk adjusted returns through regular dividends and capital growth over the long term.
Janus Henderson
A leading global active asset manager. They exist to help clients achieve their long-term financial goals.
JPMorgan Emerging Markets
They seek to uncover quality stocks from across emerging markets that are also attractively valued, benefiting from an extensive network of country and sector specialists from one of the longest established emerging market teams in the industry.
Strategic Equity Capital
A specialist alternative equity trust. Actively managed, it maintains a highly-concentrated portfolio of 15-25 high-quality, dynamic, UK smaller companies, each operating in a niche market offering structural growth opportunities.
Creating multi-trillion investment opportunities
As one of the largest issuer-sponsored research firms, we are known for our bottom-up work on individual stocks. However, our thinking does not stop at the company level. Through our regular dialogue with management teams and investors, we consider the broad themes related to the companies we follow.
Edison themes aim to identify the big issues likely to shape company strategy and portfolios in the years ahead.
Global temperatures are rising at double the rate seen in the 1980s, creating an unprecedented capital reallocation opportunity. The International Energy Agency estimates $4 trillion in annual investment is needed by 2030 –more than triple current levels – to address both climate mitigation and adaptation.
With global temperatures now 1.2°c above pre-industrial levels and new records being set every three years (instead of every 13.5 years before 1980), the urgent need for climate solutions is creating investment opportunities across seven key verticals: energy, transport, food and land use, industry, climate management, built environment and carbon markets.
A WARMING WORLD
Climate change is one of humanity’s greatest challenges, with scientific evidence showing unprecedented rates of global warming. According to the US National Oceanic and Atmospheric Administration (NOAA) Climate.gov, the Earth’s temperature rise has accelerated from 0.08°c per decade since 1880 to 0.18°c per decade since 1981.
The 2011–20 decade was the warmest on record, with global temperatures now 1.2°c above pre-industrial levels. This acceleration is evidenced by temperature records now being broken every three years, compared to every 13.5 years before 1980.
A $4 TRILLION MARKET OPPORTUNITY
The physical impacts of climate change are driving one of history’s largest capital reallocation opportunities. The International Energy Agency estimates that annual clean energy investment needs to reach $4 trillion by 2030 to achieve net-zero emissions by 2050. This is more than triple current investment levels. McKinsey analysis suggests cumulative investment of $275 trillion will be needed between 2021 and 2050, averaging $3.5 trillion annually, to transform the global economy for net-zero emissions.
SEVEN KEY VERTICALS TO FOCUS ON
The response to climate change is creating opportunities across seven key verticals: energy, transport, food and land use, industry, climate management, built environment and carbon markets. While this investment need is supported by strengthening policy frameworks, with net-zero pledges now covering 92% of global GDP, the second Trump administration is likely to disrupt global progress.
RECENT US ACTIONS LIKELY TO SLOW MOMENTUM
The US has withdrawn from the Paris Agreement again, paused funding for key climate initiatives under the Inflation Reduction Act and Infrastructure Investment and Jobs Act, and halted new wind energy projects on federal lands and waters.
These actions could slow international momentum on climate action, weaken global collaboration and shift the focus away from decarbonization in the US, which is the world’s second-largest emitter.
CLIMATE: FROM GLOBAL CONSENSUS TO CRITICAL CROSSROADS
There is a scientific consensus that climate change is real
There are a number of significant issues that face the world
climate change. Research from the Massachusetts Institute
and that most, if not all, of the change, can be attributed to anthropogenic (ie human origin) greenhouse gas (GHG) emissions, largely driven by economic and population growth. Carbon emissions determine the rate at which global warming occurs.
According to the EU, the 2011-20 decade was the warmest so far and global temperatures have reached 1.2°C above pre-industrial levels. The following are a few statistics offered by NOAA Climate.gov:
• Since 1880, the Earth’s temperature has risen by 0.08°C per decade but has risen at 0.18°C per decade since 1981 (ie. the rate of change has more than doubled).
• The 10 warmest years on record have all occurred since 2005.
• 2020 was the second warmest year on record, with land temperatures at an all-time high.
• From 1900 to 1980, a new temperature record was set every 13.5 years. Since then, a new record has been set every three years.
The chart below shows the average global temperature by year since 1880 versus the 20th century average temperature, which clearly indicates the direction of global temperatures.
prevailing winds. Therefore, CO2 emissions are far harder to manage and regulate compared to pollutants that impact at a local or country level.
The majority of the impact of CO2 emissions is yet to be seen. There are studies that show that climate change is likely to happen, but most of the negative effects are yet to be seen, therefore there is a limit on what policymakers will propose and pay for now, when future voters are likely to see the benefits.
It is hard for scientists to link GHG emissions to a specific environmental disaster. Without a direct link, sceptics can ignore or dismiss the effects of climate change.
This is an excerpt from a report Climate: Creating multi-trillion investment opportunities by Edison, (Climate: Creating multi-trillion investment opportunities - Edison Group) first published on 13 February 2025.
GLOBAL LAND AND OCEAN TEMPERATURES – FEBRUARY TEMPERATURE ANOMALIES FROM 20TH CENTURY AVERAGE
Is lithium the cornerstone of our future?
If you believe the world is going electric, if you believe the adoption of AI (artificial intelligence) is only going to increase and if you believe renewable energy will play a larger role in powering our homes and economies then you will know one critical element stands at the heart of this transformation: lithium.
This essential mineral is a key enabler of EVs (electric vehicles), renewable energy storage systems, and the rapidly expanding data centre industry.
For investors seeking exposure to the global energy transition, lithium represents a compelling opportunity with significant long-term growth potential.
According to Benchmark Minerals Intelligence, a leading research and analytics firm, global lithium carbonate equivalent (LCE) supply currently stands at 1.2 million tonnes annually. However, to meet projected demand by 2030, this figure must grow to 1.5 million tonnes per year.
Achieving this target will require the emergence of approximately 52 new lithium producers, each capable of delivering 30,000 tonnes annually. With just five years remaining to bridge this gap, the urgency for new, sustainable lithium production has never been greater.
CleanTech Lithium (CTL:AIM) is navigating a transformative phase in its development, having achieved significant milestones over the past year. The company, with projects in Chile, is establishing itself as a key contributor to the sustainable lithium supply chain, with a focus on environmentally responsible extraction methods and established community engagement. Despite short-term market volatility and heightened geopolitical pressure, the long-term outlook for lithium remains robust, driven by the global transition towards decarbonisation.
The company’s flagship project in Chile, Laguna Verde, has demonstrated substantial economic potential following an updated JORC-compliant
resource estimate.
The total resource stands at 1.63 million tonnes of LCE, with 0.81 million tonnes classified in the Measured and Indicated categories.
This resource update provides a strong foundation as CleanTech advances its PFS (Pre-Feasibility Study), which remains scheduled for the end of April 2025. The PFS will facilitate substantive discussions with strategic partners, paving the way for project development.
In parallel, CleanTech has submitted its application for a Special Lithium Operation Contract (CEOL) for Laguna Verde, which has been designated a priority project area by the Chilean government. Part of this application includes the support from local indigenous
Laguna Verde CTL Aerial View
communities through cosigned agreements, reflecting CleanTech’s commitment to social license and regional economic development.
The Chilean government has confirmed receipt of the CEOL application, with a resolution expected by the end of March 2025. The granting of a CEOL will authorise commercial lithium production, marking a critical milestone for the company.
EXPANDING GLOBAL INVESTOR ACCESS
CleanTech Lithium is actively pursuing a dual listing on the ASX (Australian Securities Exchange), expected to be completed in the second quarter of 2025.
This strategic move aims to enhance liquidity, attract institutional investors, and broaden the company’s global market presence.
By diversifying its investor base, CleanTech seeks to strengthen its financial position and support its longterm growth objectives.
A PRAGMATIC VISION OF THE FUTURE
CleanTech Lithium’s vision is underpinned by the robust fundamentals of the lithium market, which are driven by global electrification and decarbonisation efforts. The company’s use of DLE (direct lithium extraction) technology, powered by renewable energy, positions it as a leader in
CleanTech Lithium’s direct lithium extraction pilot plant inauguration in May 2024
Investing is Better Together: how SIGnet helps private investors improve performance
Warren Buffett had Charlie Munger to bounce ideas off, what about you? Why not join a group of like-minded individuals to discuss investment?
SIGnet, part of ShareSoc, is a nationwide network of almost 50 investor groups.
• Private investors meet regularly to share ideas, discuss strategies, and improve skills. The aim is to help each other improve investment performance.
• We have a social element, some groups meet in pubs.
• We Respect privacy, members invest independently, and groups do not discuss value of investments.
• We have physical and virtual groups, with a variety of meeting times.
• Most groups are generalist, discussing all investment topics; some are specialist e.g. dividend and US groups.
A GROWING NETWORK OF INVESTORS
SIGnet is launching a new group every month.
Groups offer a unique mix of experienced and new investors, creating an invaluable environment for learning and collaboration.
New groups currently being formed and looking for new members:
• Windsor group
• New Cambridge group
• New central London daytime physical group
• New virtual Equity Income group
MORE TO SIGnet THAN JUST GROUPS
• Active and informative monthly newsletter
• SIGnet Challenge - a fantasy share competition with prizes for winning groups
• Company visits. Last year we organised six visits, including Billington (BILN), Journeo (JNEO), and Smiths News (SNWS). This year our programme already includes Transense Technologies (TRT), 1Spatial, Filtronic (FTC), Cohort (CHRT), and Restore (RST)
• Virtual after and follow up meetings to company webinars
WHY SIGnet WORKS
SIGnet is a structured but informal space where investors can discuss stocks without hype or sales pitches. Members bring their own research, debate different perspectives, and challenge each other’s thinking - a process that has helped many refine their approach and improve returns.
HOW TO JOIN
The annual subscription is £50. Click here and use code SHARES20 before 30 April to receive a 20% discount. If SIGnet does not meet your expectations, we offer a three month no quibble refund guarantee.
If you would like to discuss SIGnet before joining, register for the Introduction to SIGnet meeting on 29 April (see ShareSoc events webpage).
JOIN SIGNET