London’s growth stock investors faced a challenging week, as geopolitical tensions continued to stir market sentiment. The persistent conflicts involving the US and Israel’s bombardment of Iran, alongside retaliatory drone strikes, have resulted in the near blockade of the Straits of Hormuz, maintaining a risk-averse atmosphere.

Throughout the week, the AIM All Share index experienced a significant decline, dropping nearly 4% to 729 points, marking a 5.8% decrease for the year so far. In contrast, the FTSE 100 fell by 1.7%, as investors turned towards blue-chip stocks, often perceived as more stable in turbulent times.

The mining sector was hit hardest, a development that may seem predictable upon initial examination. The impact of rising energy costs coupled with declining commodity and metal prices directly affects the operational economics of mining companies, making the downturn appear straightforward.

Yet, there’s an irony that shouldn’t go unnoticed. Many AIM-listed mining companies are not traditional miners, but rather speculative project developers. Their primary concerns are more about spreadsheets and the expertise of geologists than the operational costs associated with running mines.

Unlike traditional mining operations, these developers are not significantly impacted by the soaring expenses of operating diesel generators in remote African regions or the high costs of integrating into local power grids. Thus, while the sector as a whole suffers, the effect on these project developers may not be as pronounced.

Certainly, they aren’t troubled by the spiralling costs of running dirty and expensive diesel generators in landlocked Africa, or the expenditure required to tap into the local electricity network.

Miners take a hit: Geopolitical tensions are causing volatility among small caps

Do the sums

So, at that level, at least, the maths doesn’t add up.

Closer scrutiny suggests the picture is more nuanced. In the case of big fallers such as Kefi Gold and Copper (down 25 per cent after a good run up over the past year) and Emerson, the potash specialist off 22 per cent this week, investors have been willing to back their stories – but at a price.

Both have topped up the cash coffers, but, given the volatile backdrop outlined above, the cost of that new capital has been somewhat higher than anticipated. In other words, steeper discounts have been applied when selling new shares into the market, driving the share prices down.

At Jangada Mines the story is a little more perplexing. Down 18 per cent, the move does not seem to be in keeping with the news flow.

A week ago it delivered drilling results from its Paranaíta Gold Project in Brazil that supported a low-capex, open-pit gold production project and an increase in the resource estimate, which currently stands at 210,000 ounces (which, granted, is modest on any benchmark).

Back of the envelope

Even so, a conservative (back of the envelope) estimate suggests this could be worth around £40 million in its undeveloped state vs a market capitalisation of £10.5 million.

There have been board changes, but at the non-exec level, and a modest warrant issue. Perhaps the market is waiting for a cash call.

Outside of the mining sector, the week’s big faller, off 33 per cent, was Sound Energy after securing around £1.6 million, with £500,000 of that raised via a heavily discounted share placing. The proceeds will be used to fund working capital and its solar power joint venture in Morocco.

Onto the week’s risers. Shares in Sancus Lending Group, the AIM-listed specialist property lender, doubled in value after the company reported a return to meaningful profitability and a near-doubling of new loan origination in 2025.

Chief executive Rory Mepham said the group had entered 2026 with ‘increasing confidence’ in its ability to deliver sustainable profitability, with revenues in January and February already 30 per cent ahead of the same period last year.

Up 230 per cent year to date, Strategic Minerals climbed 33 per cent over the week after it raised about £4.7 million.

The new investment will allow it to press harder on development of its Redmoor tungsten-tin-copper project in Cornwall, with the cash coming from a direct subscription led by what it described as a prominent international investor.

Atlantic rules the waves

It was a good week for investors in Atlantic Lithium, which said Ghana’s Parliament has ratified the mining lease for its Ewoyaa lithium project, handing the developer a key de-risking milestone as it pushes funding talks and works towards a final investment decision on what could become Ghana’s first lithium mine. The shares rose 28 per cent.

The approval gives formal backing to the proposed Ewoyaa mine and processing plant. Atlantic said the ratified lease allows it to advance discussions on project financing, with the company framing the move as a major step towards first production of spodumene.

Finally, Active Energy Group, up 8 per cent this week, has moved to deepen its Abu Dhabi power infrastructure push, agreeing terms to acquire a second energised grid connection asset that will increase its secured capacity as it targets revenue-generating digital infrastructure operations.

For all the breaking news on technology, go to www.newsdefused.com

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