Connect with us

Plant-Based

Closing Bell: ASX microcaps get mauled (but junior explorers stay hot)

When markets get the jitters, smaller companies are often in the firing line and ASX microcaps have copped the brunt … Read More
The post Closing Bell:…

Published

on

When markets get the jitters, smaller companies are often in the firing line and ASX microcaps have copped the brunt of the impact from last week’s global stock selloff.

The composite microcap Emerging Companies index slumped by more than 3% for the second straight session on Monday — the first time that’s happened since a three-day streak in June 2020.

(Incidentally those three straight +3% falls finished on June 15, 2020 — one day before J-Pow famously made the money printer go brrrr).

For now, the money printer is off. Rate rises are on the cards, and investors are feeling jumpy.

But losses on the ASX today probably weren’t quite as steep as the pessimists were preparing for following a Friday night selloff on Wall Street.

A short time ago, US futures were holding their gains on Monday Asian trade, with Nasdaq 100 futures pointing higher by ~0.8% ahead of the US trading week.

TODAY’S BIGGEST SMALL CAP WINNERS

(Stocks highlighted in yellow rose after making announcements during the trading day).

Scroll or swipe to reveal table. Click headings to sort.

Code Company Price % Volume
VMM Viridis Mining 0.38 90% 2,301,054
ANW Aus Tin Mining 0.0015 50% 45,433,629
GGX Gas2Grid Limited 0.003 50% 213,897
IEC Intra Energy Corp 0.018 29% 3,752,719
MCM Mc Mining Ltd 0.099 27% 1,675
CCE Carnegie Cln Energy 0.0025 25% 5,425,554
YPB YPB Group Ltd 0.0025 25% 7,970,385
MHK Metalhawk. 0.335 22% 965,414
RXL Rox Resources 0.575 17% 2,550,398
GSR Greenstone Resources 0.034 17% 6,345,366
ASO Aston Minerals Ltd 0.175 17% 12,637,394
ARO Astro Resources NL 0.007 17% 49,508,507
MDX Mindax Limited 0.04 14% 754,101
IRX Inhalerx Limited 0.089 14% 220,000
MRD Mount Ridley Mines 0.0085 13% 61,370,763
CPM Coopermetalslimited 0.3 13% 961,356
AD1 AD1 Holdings Limited 0.026 13% 130,043
SMI Santana Minerals Ltd 0.305 13% 223,528
CYQ Cycliq Group Ltd 0.018 13% 1,625,000
TSC Twenty Seven Co. Ltd 0.0045 13% 1,218,000

The sparkling debut for Viridis Mining (ASX:VMM) continued into the closing bell, as the stock almost doubled from its 20c listing price on day one.

VMM raised $5m in the IPO and has five projects in Australia and Canada: South Kitikmeot and Boddington West (gold), Bindoon (nickel, copper, PGEs) and Poochera and Smoky (kaolin-halloysite).

Greenstone (ASX:GSR) became a tiny gold producer two weeks ago, announcing its maiden pour of 840 oz, worth $2.1 million. Not bad for a – at the time – $23m operation out of Coolgardie, WA. It took until today for its price to move up 17% though. It’s now in a trading halt at its own request pending what could be an interesting announcement, scheduled for release by or on Thursday.

Monday’s winner’s list was almost entirely populated by resources stocks, and another winner was Metalhawk (ASX:MHK), which announced that aircore drilling has resumed at its Berehaven nickel project in the WA goldfields.

MHK added that reverse-circulation drilling has also commenced at Commodore South project, where the company announced a high-grade nickel sulphide discover in late-September.

Two weeks prior to that September 28 announced, MHK shares soared from ~20c to more than 70c before falling back towards 20c through to the end of the year.

TODAY’S BIGGEST SMALL CAP LOSERS

(Stocks highlighted in yellow fell after making announcements during the trading day).

Scroll or swipe to reveal table. Click headings to sort.

Code Company Price % Volume
ARE Argonaut Resources 0.003 -50% 331,021,055
CGB Cann Global Limited 0.002 -33% 1,989,780
NES Nelson Resources. 0.026 -32% 4,045,525
BAS Bass Oil Ltd 0.0015 -25% 2,608,452
PAB Patrys Limited 0.028 -24% 40,359,096
AHN Athena Resources 0.011 -21% 1,107,142
COY Coppermoly Limited 0.011 -21% 139,166
ADH Adairs Limited 3.01 -21% 8,970,843
VMG VDM Group Limited 0.002 -20% 2,539,643
JAT Jatcorp Limited 0.017 -19% 21,375,359
BIR BIR Financial Ltd 0.029 -17% 2,847,052
GTG Genetic Technologies 0.005 -17% 16,455,231
PCL Pancontinental Energ 0.0025 -17% 5,365,363
SBR Sabre Resources 0.005 -17% 17,020,494
SIT Site Group Int Ltd 0.005 -17% 1,008,852
SIX Sprintex Ltd 0.057 -16% 254,814
AUQ Alara Resources Ltd 0.026 -16% 2,501,333
CAE Cannindah Resources 0.26 -16% 1,821,044
SPN Sparc Tech Ltd 1.63 -16% 815,813
MSI Multistack Internat. 0.032 -16% 59,411
NWE Norwest Energy NL 0.027 -16% 40,775,547
MGU Magnum Mining & Exp 0.084 -15% 7,789,787
ESS Essential Metals Ltd 0.44 -15% 7,786,081
EMT Emetals Limited 0.018 -14% 1,488,958
ADY Admiralty Resources. 0.012 -14% 757,712

It was a rough Monday for Argonaut Resources (ASX:ARE), which got some bad news out of Zambia when its lawyers said the licence for its Lumwana West copper-cobalt project wouldn’t be renewed.

Not only that, but “a new licence over the Lumwana West area was hurriedly and potentially corruptly granted to a recently registered company with no apparent financial or technical capacity”.

Argonaut plans to appeal the ruling but in the meantime, its share price fell by 50% to 0.3c.

ANNOUNCEMENTS YOU MAY HAVE MISSED

The Food Revolution Group (ASX:FOD) has developed two proprietary 100% plant-based smoothies, which use fava bean protein to be sold under its Juice Lab brand in Coles supermarkets around the country from February 2022, with wider distribution expected by June. Shares (2.10c) were unchanged by the news of a vegan addition to the Juice Lab brand, whose Carbonated Wellness cans were released in Coles and Woolworths in late 2021 and whose wellness shots enjoy a 55% market share.

Nutritional Growth Solutions Ltd (ASK:NGS) has been approved to initiate its retail expansion in the US by Walmart Inc and RangeMe America LLC which are expected to begin selling its evidence-based children’s growth milkshakes, Healthy Heights through Walmart.com and RangeMe.com respectively from March 2022. Shares (20.0c) were likewise unchanged by the announcement from the company, which has a market cap of $23.61m.

Butn (ASX:BTN) is launching a partnership with Freightlancer, essentially acting as a BNPL for the country’s largest freight marketplace, extending a range of payment terms and cashflow solutions to end business users, in a bid to address the increased demand and ongoing supply chain issues resulting from the Covid-19 pandemic. Its share price currently sits at 31.5c, down 1.56% from 32.0c at open. In case you were wondering how the shipping saga is progressing:

TRADING HALTS

Greenstone (ASX:GSR) — Response to ASX price query
Cassius Mining (ASX:CMD) — Tenement acquisition / capital raising
Austin Metals (ASX:AYT) — Capital raising
GWR Group (ASX:GWR) — Capital raising / acquisition
Structural Monitoring Systems (ASX:SMN) — Underwriting agreement (entitlement offer)
Artemis Resources (ASX:ARV) — Capital raising (bookbuild)
I-Synergy Group (ASX:IS3) — Capital raising / acquisition
Red Mountain Mining (ASX:RMX) — Capital raising

The post Closing Bell: ASX microcaps get mauled (but junior explorers stay hot) appeared first on Stockhead.

Read More