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Closing Bell: ASX microcaps get mauled (but junior explorers stay hot)
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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 |
Among ASX microcaps, 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 |
Leading the laggards in ASX microcaps, 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.
ASX MICROCAPS — 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:
Shipping rates from China up another 1.9% last week. Takes the increase over the last 1.5 years to 311% #inflation #SupplyChain
🚢🚢🚢🚀🚀🚀 pic.twitter.com/OeVAwEIPls
— David Scutt (@Scutty) January 23, 2022
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
