Resources Top 5: ‘BRB, just dusting off my unloved lithium project’

Explorer Breaker plans to unlock hidden value from its ‘Manna’ lithium discovery
Small producer Ikwezi has gained ~100% this week as coal sentiment surges
Popular lithium stock Sayona closes in on $1bn valuation

Here are the biggest small cap resources winners in early trade, Friday August 13.

BREAKER RESOURCES (ASX:BRB) and CAENEUS MINERALS (ASX:CAD)

(Up on no news)

Does the current lithium stock surge have more room to run, we asked? Yep.

Gold focused Breaker and Caeneus are the latest to benefit, largely thanks to some solid small cap investigative work from Garimpeiro himself.

$64m market cap Breaker is progressing its 1.4moz (and growing) Lake Roe gold resources toward development.

In the latest quarterly, it announced plans to unlock hidden value from its ‘Manna’ lithium discovery – uncovered by prospector Steve Argus while undertaking reconnaissance gold exploration for the company early in 2018 — at Lake Roe.

The company will “update shareholders at the appropriate time”.

$71m market cap Caeneus – focused on making a Hemi-like gold discovery in the Pilbara — also has lithium assets gathering dust in the recesses of its portfolio.

It’s two lithium brine projects in Nevada are in good standing, with the company making its final milestone payment on the ‘Columbus Marsh’ asset during the quarter to confirm 100% ownership.

BRB, CAD share price charts

IKWEZI MINING (ASX:IKW)

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Ikwezi has gained ~100% this week alone as a prominent beneficiary of resurgent coal sentiment.

The $22m market cap South African coal producer is now up 40% year-to-date.

Prices for thermal – the stuff used in power plants – continues to increase, it says.

“The API4 forward curve is currently trading at approximately over $US120 per ton for July 2021 and predicts an average selling price of $US115 for the next 12 months,” it said on July 30.

The company – which has just $214,000 in the bank — aims to ramp up its throughput to 75,000 tonnes a month in the September quarter.

SAYONA MINING (ASX:SYA)

(Up on no news)

What else can you say about popular lithium stock Sayona?

The North American focused project developer is currently nudging a $1 billion valuation after gaining an eyewatering 1,600% in 2021.

In June, a Canadian court approved Sayona’s ~$107 million acquisition of the mothballed North American Lithium (NAL) operation, which will be integrated into the nearby Authier project to create a world scale lithium hub.

ORMINEX (ASX:ONX)

(Up on no news)

In December, this former struggler sold 50% of its undeveloped 248,000oz ‘Penny’s Find’ gold mine for $1.5m to Horizon Minerals (ASX:HRZ), which shelled out another $1m to fund early development.

A good move, with the stock now up ~100% year-to-date.

Approvals for mine development are in place and a toll milling agreement executed for ore processing in the March quarter 2022.

At the end of July, Orminex was also in discussions “with key stakeholders of a number of strategic gold projects in the proven and prospective Abitibi region, located in the Tier-1 jurisdiction of Quebec, Canada”.