Closing Bell: ASX microcaps make it 8 from 9; EV supplier doubles up on US$20m charging deal

Another trading day in February, another win for ASX microcaps.

The composite Emerging Companies index rose again on Wednesday for its fourth straight winning session, and eighth in the last nine days either side of a -2.56% wobble on February 3.

With today’s 1.06% gain, the index has now recouped about half of the 13% fall it copped in a savage four-day selloff between January 21 and January 27.

Wednesday small cap highlights: A potential ‘Julimar-like’ discovery, with Caspin Resources (ASX:CPN) hitting significant nickel and PGE sulphides at its project next door to the now-famous discovery by Chalice Mining (ASX:CHN).

Wednesday small cap lowlights: US-based ecommerce play Zebit (ASX:ZBT), which looks like it’s running out of cash and today flagged plans to delist from the ASX, less than two years after listing.

Looking abroad, it’s still ‘risk-on’ in global markets, with US stock futures also pointing higher ahead of the mid-week session on Wall Street later tonight.

So far, the good vibes are holding up ahead of this week’s major data release — US inflation figures for January on Thursday night.

TODAY’S BIGGEST SMALL CAP WINNERS

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

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Beating out Caspin today was a double-up, as Rectifier Technologies (ASX:RFT) surged by 100% after flagging a US$20m production order in a one-paragraph announcement.

The deal is with electric vehicle charging company Tritium Pty Ltd, and will see RFT supply an order for “35kW high-voltage and high-efficiency modular power supply units” in connection with Tritium’s EV charging operations.

The purchase orders are binding and are expected to be completed before the end of this year, RFT said. Per-unit details of the order weren’t disclosed.

TODAY’S BIGGEST SMALL CAP LOSERS

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

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Coal-processing technology company White Energy (ASX:WEC) suffered a catastrophic intraday fall of 85.6%, after getting some bad legal news out of Singapore.

The Singapore International Commercial Court issued a ruling in connection with a dispute between two WEC subsidiaries and PT Bayan Resources, in connection with a joint venture between the companies.

While ruling in WEC’s favour in some technical aspects of the case concerning Bayan’s conduct in the joint venture, the Court dismissed WEC’s damages claim for wasted expenditure, and also the loss of chance to expand the project.

In an announcement last night, WEC said it is “extremely surprised and bitterly disappointed with the outcome of the decision in circumstances where the Court has previously concluded that Bayan had clearly breached its obligations under the joint venture”.

ANNOUNCEMENTS YOU MAY HAVE MISSED

Murray River Organics Group (ASX:MRG) has called in the receivers. It was announced today that Peter McCluskey and John Lindholm of KPMG were appointed as receivers and managers of each company in the group.

The company has been suspended from trade for months after failing to submit its FY21 Audited Financial Statements. According to the KPMG announcement, an urgent assessment of the group’s financial position is being undertaken while operations are continuing as usual.

Welding technology specialist K-Tig (ASX:KTG) is entering the nuclear space announcing it will work with UK-based Nuclear Advanced Manufacturing Research Centre to develop a turnkey robotic welding cell.

The cells will be used in the production of stainless steel nuclear storage containers. Up to 17,000 containers will be needed to hold intermediate level waste during the decommissioning of the Sellafield nuclear site as part of Britian’s $2.84 million procurement plan, scheduled to kick off next year.

Centuria Capital Group (ASX:CNI) and its joint venture partner Digital Infratech have announced a proposed $250 million health, education and community precinct at Cudgen, on the Tweed Coast in New South Wales.

To be called Cudgen Connection, the 5.7 hectare precinct is earmarked to provide a range of facilities in the growing region including a new uni campus, aged care facilities, private hospital and health facilities along with essential worker housing and an amphitheatre.

TRADING HALTS

The following companies went into halts on Wednesday and are expected out in the coming days.

Eastern Metals (ASX:EMS) — material drilling result
Zebit (ASX:ZBT) — proposed delisting
Nickel Mines (ASX:NIC) — capital raising
Ardiden Ltd (ASX:ADV) — capital raising