What have we done? Via Getty
Weekly Small Cap and IPO Wrap: The pandemic party is done, hello the post-pandemic crisis
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- ASX200 finishes week… badly
- Small caps down 11%, no biggie
- Greentech Metals and ResApp – the go to small caps in a crisis
A dim, dark yet memorable week for fans of money. I thought the benchmark’s previous 4% weekly retreat was the cake-taker, but the ASX200 losses this week are about double that, turning Friday’s session into a bleak facsimile of the five blood-letting sessions of trade which dragged out before it.
Tech stocks led the rout, and they’ve been in quasi-crisis all year anyway but resources, retailers and financials all came to the party as worries about the global economic outlook turned into something darker and more sinister and sellable. The rising chatter of a global recession also led to falls in oil, precious and base metals and the general joie de vivre of world markets.
Here at home, unless something stupendous happens – like Mr Putin being hit by a malfunctioning Space-X satellite or an unsolicited alien takeover of Andrew ‘Twiggy’ Forrest, this’ll be the week we look back on and say – that was as shite as that shocker we had back in April 2020.
Then, if we’re honest we’ll say , y’know, if you’re a wealthy market participant who hasn’t been killed by COVID-19 or pieces of falling satellite, these have been a pretty good couple of years – and what’s another $50 billion in market value between global crises.
Because that’s what this week has been all about.
Crises, plural.
There’s the global economic crisis, which prompted a crisis of market confidence. The inflation crisis, met by some crisis mis-management on the part of global central banks. The energy crisis is actually a coal meets gas crisis, the result of a structural crisis in the transition to renewable energy to deal wit the climate crisis. That crisis is really thanks to the crisis in Ukraine.
The iron ore miners are enjoying their own private crisis as the majors make it six straight days of blood loss after China’s latest stitched up idea to deal with its own commodities crisis. That crisis looks like a small crisis compared to its COVID-19 crisis which isn’t going anywhere. BHP, Fortescue and Rio Tinto have all shed between 1.8% and 3.5% on Friday, making a crisis for mum and dad shareholders but not for Twiggy, who remains insulated by both wealth, insanity and the alien bodysnatchers which acquired Mr Forrest around the time he was on the high-seas trying to sort out the plastic in our oceans crisis.
The Emerging companies (XEC) index is down about 11% for the week.
We’ll make that back on Monday.
IPO’s this week:
It was a good week for friends and family of Cavalier Resources (ASX:CVR) which joined the ranks of publicly listed companies today.
They’re flat at the time of writing, which in this climate is something of a miracle. CVR has nailed an IPO, raising $5m, giving it a market cap of circa $8.6m.
It is the second successful IPO in just six months for executive chairman Ranko Matic and executive technical director Daniel Tuffin, who together rang the bell for nickel, cobalt and gold explorer Panther Metals (ASX:PNT) in December 2021.
Demonstrating their confidence in Cavalier and its portfolio of prospective projects, the directors and management are large shareholders, collectively owning a 20% stake in the company.
Cavalier’s portfolio consists of three projects within proven gold and nickel regions in Western Australia – from near-mine-ready resources at the Leonora Gold Project, which holds 101,000oz of gold at the Crawford Gold Project, to untested walk-up targets at the Hidden Jewel Gold Project and the Ella’s Rock Nickel-Gold Project.
All three project areas are located within close proximity to several mills. The flagship Leonora Gold Project sits 25km east of St Barbara’s (ASX:SBM) gold mill in the 120Moz Kalgoorlie/Norseman Belt, Hidden Jewel (also located on the Kalgoorlie/Norseman Belt) is 20km north of Norton Gold Fields’ 5Mtpa processing plant and Ella’s Rock is located in the 12Moz Southern Cross Belt just 20km from Western Areas’ (ASX:WSA) Cosmic Boy nickel plant.
ASX SMALL CAP WINNERS:
Here are the best performing ASX small cap stocks for June 14 – June 17:
| Code | Company | Price | % Week | Market Cap |
|---|---|---|---|---|
| GRE | Greentechmetals | 0.325 | 97% | $10,791,600 |
| RAP | Resapp Health Ltd | 0.17 | 55% | $146,063,503 |
| SUH | Southern Hem Min | 0.025 | 47% | $7,333,193 |
| ARO | Astro Resources NL | 0.004 | 33% | $18,820,965 |
| CCE | Carnegie Cln Energy | 0.002 | 33% | $30,205,147 |
| NCL | Netccentric Ltd | 0.092 | 33% | $19,810,816 |
| OEX | Oilex Ltd | 0.004 | 33% | $24,728,878 |
| RFA | Rare Foods Australia | 0.065 | 27% | $12,847,538 |
| RR1 | Reach Resources Ltd | 0.005 | 25% | $9,550,253 |
| SIH | Sihayo Gold Limited | 0.0025 | 25% | $15,255,320 |
| AVA | AVA Risk Group Ltd | 0.215 | 23% | $43,733,373 |
| CML | Chase Mining Limited | 0.017 | 21% | $7,958,257 |
| HE8 | Helios Energy Ltd | 0.092 | 19% | $242,176,598 |
| BEX | Bikeexchange Ltd | 0.02 | 18% | $3,756,090 |
| SCT | Scout Security Ltd | 0.034 | 17% | $4,908,629 |
| SLX | Silex Systems | 1.95 | 16% | $389,205,426 |
| TZL | TZ Limited | 0.1 | 15% | $22,270,811 |
| AJL | AJ Lucas Group | 0.062 | 15% | $62,206,905 |
| NNG | Nexion Group | 0.07 | 15% | $5,499,228 |
| TRM | Truscott Mining Corp | 0.055 | 15% | $8,356,785 |
| BMO | Bastion Minerals | 0.16 | 14% | $12,148,682 |
| HCT | Holista CollTech Ltd | 0.034 | 13% | $8,260,473 |
| MBX | Myfoodieboxlimited | 0.13 | 13% | $4,354,999 |
| GGE | Grand Gulf Energy | 0.026 | 13% | $41,758,488 |
| CVC | CVC Limited | 2.45 | 13% | $268,695,416 |
| TYX | Tyranna Res Ltd | 0.018 | 13% | $26,050,131 |
| AII | Almontyindustriesinc | 1.02 | 12% | $18,523,489 |
| DAL | Dalaroometalsltd | 0.095 | 12% | $2,868,000 |
| PXX | Polarx Limited | 0.019 | 12% | $15,284,719 |
| PNV | Polynovo Limited | 1.29 | 11% | $853,577,577 |
| BIR | BIR Financial Ltd | 0.02 | 11% | $3,265,851 |
| PWN | Parkway Corp Ltd | 0.01 | 11% | $19,919,362 |
| SBR | Sabre Resources | 0.005 | 11% | $13,948,655 |
| IKW | Ikwezi Mining Ltd | 1.68 | 11% | $70,121,205 |
| FRS | Forrestaniaresources | 0.155 | 11% | $4,214,821 |
| EVS | Envirosuite Ltd | 0.155 | 11% | $194,519,194 |
| DRE | Dreadnought Resources Ltd | 0.042 | 11% | $116,386,026 |
| AXP | AXP Energy Ltd | 0.0055 | 10% | $34,873,084 |
| NCR | Nucoal Resources Ltd | 0.011 | 10% | $9,223,348 |
| TMK | TMK Energy Limited | 0.011 | 10% | $38,280,000 |
| 8IH | 8I Holdings Ltd | 0.1 | 10% | $43,002,719 |
| BLG | Bluglass Limited | 0.029 | 9% | $35,718,106 |
| HAR | Harangaresources | 0.175 | 9% | $7,108,383 |
| JAT | Jatcorp Limited | 0.015 | 9% | $29,975,422 |
| DSK | Dusk Group | 1.88 | 9% | $105,855,371 |
| KIL | Kiland Ltd | 1.295 | 9% | $98,061,723 |
| PSQ | Pacific Smiles Grp | 1.65 | 9% | $251,341,552 |
| GAL | Galileo Mining Ltd | 1.67 | 9% | $286,093,216 |
| HHI | Health House Int Ltd | 0.012 | 9% | $1,900,735 |
Swipe or scroll to reveal full table. Click headings to sort:
It was a winner yesterday and it’s this week’s small cap of the crisis.
GRE produced some thrilling drill hits – like 32m @ 2.43% copper – the multi-metal green machine screamed into a halt on Thursday pending an update on the original news laid out below in articulate bullet point glory by Reuben. I’m no geologist, but as far as i can tell the hits are just as juicy.
For example
- 19m @ 1.6% Cu, 2.27% Zn and 0.51g/t Au from 21m
- 12m @ 9.17% Zn, 2.34% Cu and 0.62g/t Au from 52m; and
- 8m @ 2.65% Cu, 0.64% Zn and 0.11g/t Au from 141m
This drilling confirms that the high-grade copper and zinc at Whundo persists at depth and beyond the current resource envelope, GRE says.
Then there’s the bonus gold grades of up to 3.34g/t, which accompany the higher-grade copper zones and “further enhances the potential economics of the project”.
Whundo is at the core of a much broader copper and zinc mineralised system, GRE exec director Thomas Reddicliffe says.
“Drilling has demonstrated that the mineralisation at Whundo remains open at depth and with grades persisting,” he says.
“This and the identification of two additional mineralised horizons provides further impetus for the company to build upon the known resource.”
Assay results for three additional holes drilled at Whundo, and seven holes drilled at the nearby ‘Ayshia’ deposit are expected in the coming weeks.
Once all assays are received, GRE will look to update the existing resource at Whundo/Ayshia of 3.6 Mt @ 1.2% copper and 1.4% zinc.
The other small cap in a crisis which springs to the fore is ResApp Health (ASX:RAP). As I wrote with incredible perceptivity and sensitivity earlier this week – this plucky little smartphone-based respiratory diagnostic maker, was surging like a fiend, up 50%.
The global pharmaceutical giant Pfizer had just supercharged its broadly supported original offer for 100% of ResApp by as much as $78m, with the proviso – and this would seem a no-brainer – that RAP can reproduce the promise of its COVID-19 screening cough results.
I’m also going to give a shout out to Bubs Australia (ASX:BUB) not the smallest cap in the pond, but a little pilot fish floating on the gills of a terrific infant formula crisis unfolding in the states.
Bubs this week announced a material upgrade to the company’s FY22 revenue and earnings expectations. Following recent contract wins in the US, the company now expects FY22 gross revenue to exceed $100m, and to achieve at least 100% increase on 1H22 underlying EBITDA of $1.2m.
ASX SMALL CAP LOSERS:
Here are the best performing ASX small cap stocks for June 14 – June 17:
Swipe or scroll to reveal full table. Click headings to sort:
| Code | Description | Last | % Week | Market Cap |
|---|---|---|---|---|
| KWR | Kingwest Resources | 0.066 | -47% | $22,353,518 |
| IMR | Imricor Med Sys | 0.11 | -45% | $21,494,091 |
| AYA | Artryalimited | 0.425 | -45% | $35,076,787 |
| AMD | Arrow Minerals | 0.002 | -43% | $5,471,795 |
| HUM | Humm Group Limited | 0.44 | -42% | $284,779,283 |
| BMH | Baumart Holdings Ltd | 0.105 | -42% | $26,054,056 |
| DCN | Dacian Gold Ltd | 0.105 | -42% | $184,463,101 |
| GFN | Gefen Int | 0.08 | -41% | $5,375,996 |
| CBL | Control Bionics | 0.13 | -37% | $6,291,363 |
| C29 | C29Metalslimited | 0.11 | -35% | $2,994,750 |
| ILA | Island Pharma | 0.12 | -35% | $5,189,559 |
| OLL | Openlearning | 0.03 | -35% | $7,074,685 |
| OKR | Okapi Resources | 0.19 | -34% | $24,013,530 |
| AUQ | Alara Resources Ltd | 0.041 | -34% | $33,860,603 |
| 3MF | 3D Metalforge | 0.012 | -33% | $2,311,006 |
| A8G | Australasian Metals | 0.2 | -33% | $8,645,804 |
| AYM | Australia United Min | 0.004 | -33% | $7,370,310 |
| AYT | Austin Metals Ltd | 0.008 | -33% | $9,142,872 |
| DVL | Dorsavi Ltd | 0.01 | -33% | $3,538,813 |
| GO2 | Thego2People | 0.012 | -33% | $4,879,659 |
| MGG | Mogul Games Grp Ltd | 0.002 | -33% | $6,523,320 |
| NAE | New Age Exploration | 0.006 | -33% | $10,051,292 |
| OMX | Orangeminerals | 0.08 | -33% | $3,898,714 |
| RCW | Rightcrowd | 0.04 | -33% | $11,762,338 |
| KKO | Kinetiko Energy Ltd | 0.05 | -33% | $35,974,068 |
| BKG | Booktopia Group | 0.235 | -33% | $32,966,232 |
| EPN | Epsilon Healthcare | 0.0225 | -33% | $5,528,142 |
| SZL | Sezzle Inc. | 0.29 | -33% | $58,234,393 |
| ABV | Adv Braking Tech Ltd | 0.021 | -32% | $7,962,124 |
| WMC | Wiluna Mining Corp | 0.33 | -32% | $101,961,574 |
| WR1 | Winsome Resources | 0.22 | -31% | $29,725,079 |
| DEL | Delorean Corporation | 0.093 | -31% | $21,356,371 |
| SLZ | Sultan Resources Ltd | 0.1 | -31% | $8,744,861 |
| KCC | Kincora Copper | 0.065 | -31% | $5,127,158 |
| FGL | Frugl Group Limited | 0.009 | -31% | $1,813,950 |
| VEE | Veem Ltd | 0.42 | -31% | $59,037,962 |
| GCR | Golden Cross | 0.063 | -30% | $6,583,537 |
| GLV | Global Oil & Gas | 0.0035 | -30% | $7,493,419 |
| M24 | Mamba Exploration | 0.07 | -30% | $3,374,000 |
| ACB | A-Cap Energy Ltd | 0.063 | -30% | $86,270,456 |
| EM2 | Eagle Mountain | 0.28 | -30% | $79,092,469 |
| SHP | South Harz Potash | 0.098 | -30% | $55,863,542 |
| PNR | Pantoro Limited | 0.21 | -30% | $322,879,456 |
| TGM | Theta Gold Mines Ltd | 0.061 | -30% | $39,066,141 |
| CPO | Culpeominerals | 0.2 | -30% | $9,019,413 |
| GLA | Gladiator Resources | 0.019 | -30% | $10,343,398 |
| ELT | Elementos Limited | 0.42 | -29% | $79,708,033 |
| RVS | Revasum | 0.265 | -29% | $30,715,830 |
| KP2 | Kore Potash PLC | 0.017 | -29% | $12,991,744 |
Wow. Humm (ASX:HUM), Booktopia (ASX:BKG) and Sezzle (ASX:SZL) all fell by about a full third this week. That last one’s going to feel pretty galling to ZipCo (ASX:Z1P), who’s paid about half a billion dollarbucks for that fizzler.
Pack away your party masks. The pandemic boom is done.
