Lunchtime ASX small cap wrap: who’s jumping and who’s diving
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Here are the key ASX small cap gainers and losers at 1pm AEST Tuesday.
The ASX Small Ords index was up 5 points at 2,805 by lunch.
Panorama Synergy (ASX:PSY) surged 46 per cent to 7.6c after its first major market update for the year.
Panorama gained 50 per cent back in September when it agreed to buy high tech device engineer Hydrix Group for $2 million — and kept climbing to a high of 16c early this year.
Since then it’s fallen all the way back to 5c — but it jumped after today issuing a company update.
Panorama told investors it achieved several milestones over recent months. It had been appointed to the Australian Department of Defence Support Services Panel; won an award for Hydrix’s design for a portable X-ray machine and its client Bivacor’s artificial heart had been featured in the AFR.
The shares were at 6.7c by 1.15pm AEST.
Brookside Energy (ASX:BRK) is the most traded small cap today after delivering record initial production rates of 154,000 barrels of oil equivalent (boe) in the first 38 days its most recent well.
That news sent the stock surging 23 per cent to an intraday high of 1.6c. It was trading at 1.5c just after 1pm AEST with more than 40 million shares changing hands.
Flow rates for the well, located in the STACK play in the Cana Wet Gas part of the company’s Blaine County focus, are hitting 5,400 boe per day.
The so-called STACK and SCOOP plays in Oklahoma’s Anadarko Basin have been described as two of the “hottest new areas” for oil development in the US. (Brookside is a Stockhead advertiser).
Centaurus Metals (ASX:CTM) was also heavily traded this morning, moving ahead 13 per cent to an intraday high of 1.7c before falling back to 1.5c. More than 27 million shares were traded.
Centaurus this morning reported its first assays (or lab results) from a maiden drilling program at its Itapitanga nickel and cobalt project in Brazil.
Centaurus reported “the discovery of significant high‐grade nickel and cobalt mineralisation”.
Itapitanga is part of Centaurus’s move into the Carajas region of northern Brazil where it will look for game-changing discoveries after previous attempts to break in to Brazil’s iron ore industry, wrote Stockhead columnist Barry FitzGerald a few weeks ago.
“This is exactly the start we were hoping for,” said MD Darren Gordon. “We have seen high quality mineralisation in all of the holes, with several holes also outlining a high‐grade cobalt zone grading above 0.2 per cent Co,” he said.
Internet filter Family Zone (ASX:FZO) moved ahead 10 per cent to 55c after signing a deal it hopes will make it the “leading provider of cyber safety solutions in India”.
India’s biggest mobile network Vodafone will sell Family Zone’s mobile phone Internet-protection service, Mobile Zone, under a revenue-sharing agreement. It will also be bundled with other Vodafone products under a service fee.
Vodafone India has about 430 million subscribers in total — more than 40 per cent of the market.
Family Zone was one of the best performing ASX small caps in the second half of last year. The stock quadrupled from about 25c to a high of $1.05, before drifting back to about half that level this year.
Australian Mines (ASX:AUZ) also made gains on cobalt results at its Thackaringa project in New South Wales.
The stock gained 10 per cent to 9c in early Tuesday trade with 18 million shares traded.
Aus Mines told investors it had identified “three zones of elevated levels of cobalt” that were “reportedly similar to that observed at surface over Cobalt Blue’s (ASX:COB) Pyrite Hill and Big Hill cobalt deposits.
Soil and surface sampling would continue with further results expected in the coming quarter ahead of a maiden drilling program.
Aus Mines also said it was “continuing to advance its flagship Sconi Cobalt-Nickel-Scandium
project in northern Queensland toward major development milestones in 2018”.
Sunstone Metals (ASX:STM) moved ahead 13 per cent to an intrday high of 4.2c after announcing “more very strong gold and copper results” at a gold and copper target in its Bramaderos project in Ecuador.
An extended trench intersected 97.6m grading 0.71 grams of gold per tonne and 0.23 per cent copper.
Previously reported gold and copper results included 1.94m at 1.2g/t gold and 1.25 per cent copper plus 2.06m at 1.74 g/t gold and 0.41 per cent copper from separate samples.
Gold is considered medium grade at 1.5g to 5g. Copper is medium grade at 0.5 – 1.5 per cent.
“These additional trench results from Limon, and their high degree of correlation with independent datasets is
providing us with great confidence ahead of drilling,” said Sunstone boss Malcolm Norris.
The shares dropped back to 3.9c by 1.15pm AEST.
Here are the best performing ASX small caps at 12.30pm AEST Tuesday:
Transaction Solutions International’s (ASX:TSN) decision to focus on Aussie cybersecurity — and step away from Indian ATMs — seems to be working.
The company today reported a much smaller loss in 2018 — shrinking to $590,000, compared to $1.3 million in fiscal 2017.
But the result wasn’t enough for shareholders who sent the shares down slightly from 0.6c to 0.5c in early trade.
In August TSI bought Decipher Works, a Sydney cybersecurity company, for $5.1 million.
That acquisition allowed it to stop wholly depending on its 24.89 per cent stake in TSI India, an ATM operator, for revenue.
Other small and micro caps losing ground this morning included Aruma Resources, KnoSys, Zinc of Ireland and Peppermint.
Here are the worst performing ASX small caps by 12.30pm AEST Tuesday: