• 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:

Swipe or scroll to reveal full table. Click headings to sort:

Greentech Metals (ASX:GRE) 

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.