Lunchtime small cap wrap: who’s winning and who’s not
Link copied to
Here are the key ASX small cap winners and losers at lunchtime Thursday June 7.
Robot bricklayer Fastbrick (ASX:FBR) put on 14 per cent to an intraday high of 20c today after completing mechanical assembly of its Hadrian X construction robot.
Hadrian X was now “ready for extensive testing of its functionality over the next several months” said the company — which is rebranding itself FBR.
“This represents the start of a very important phase for FBR, where we’ll get the opportunity to globally demonstrate the Hadrian X and get everyone excited about what now exists in construction technology, and what might be possible for the future,” said chief Mike Pivac.
Hadrian X is on track to build its first house — a 3-bedroom, 2-bathroom structure known as Build1 — in the next six months.
Cannabis play Stemcell United (ASX:SCU) jumped 65 per cent to 3.8c amid heavy trading after announcing its partner Yunnan Hua Fang Industrial Hemp (HFIH) had been granted a licence to plant, process and sell industrial hemp products in China.
The licence allows HFIH to access cannabis seeds which SCU can use for stem cell research as it works to establish itself as a supplier of Chinese medicine cosmetic cannabis products.
SCU has the right to acquire up to 51 per cent of HFIH for about $760,000.
Carawine Resources (ASX:CWX) gained 33 per cent to 30.5c after announcing “exceptional first results” for the first diamond drill hole at its Hill 800 gold prospect in north-eastern Victoria.
The drill intersected “exceptional widths and grades of gold mineralisation only 60m from surface”.
“Even at this early stage of the program there are indications of an intensely altered mineralised system associated with high gold grades, and there are not many current gold discoveries reporting this width and grade of mineralisation so close to surface,” said MD David Boyd.
“We look forward to announcing regular updates from the drilling program as further results are
received over the next two months.”
Mark Creasy-backed Myanmar Metals (ASX:MYL) rose 22 per cent to 8.4c after successfully completing a bookbuild to raise $35 million at an issue price of 6c.
Myanmar said the placement was “heavily oversubscribed with significant demand from a wide range of new domestic and international institutional investors”.
The placement includes $19.1 million of binding commitments from Mr Creasy’s Yandal Investments and another cornerstone investor Perilya.
Gold and copper producer Doray Minerals (ASX:DRM) was up nearly 5 per cent to an intra-day high of 32.5c on Thursday morning after unearthing extremely high grades of gold and copper at its Deflector mine in Western Australia.
Drilling had exposed a lode that hosted “bonanza” grades of as high as 299 grams per tonne (g/t) gold and 10.5 per cent copper, the company said.
Grades above 5g/t gold and 1.5 per cent copper are generally considered high grade.
Here’s a snapshot of the best performing ASX small caps at 12.15pm AEST Thursday Jun 6:
WPG Resources (WPG) lost 20 per cent to 1.6c after producing less gold than expected.
“Although the month started well, gold production for May was approximately 5,200 ounces compared to a forecast of 6,500 ounces,” the miner said.
May’s production was lower than forecast due to “a number of unplanned events” including a rockfall that buried a remote unit and “some issues in the mill caused by wet and sticky high grade ore”.
Ongoing development of its Challenger Deeps project would require new capital investment, WPG said.
“WPG is actively engaged in refinancing and re-capitalisation discussions with potential funders to deliver these outcomes. Discussions with potential funding parties are incomplete and may not be successful.”
Here’s a snapshot of the worst performing ASX small caps at 12.15pm AEST Thursday Jun 6: