Who made the gains? Here are September’s top 50 small cap miners and explorers
Link copied to
A bunch of small cap resources plays made colossal gains over the month of September. Here’s some of the highlights.
In September, nickel continued to ‘flip the bird’ at negative macro sentiment.
Nickel’s monstrous bull run — which caught everyone by surprise — saw prices peak at an incredible $US18,620/t during the month. Remember, nickel was selling for $US10,430/t at the start of the year. Crazy stuff.
>>Scroll to the end for September’s Top 50 resources performers
Gold spent much of September treading water. But with macro clouds like Brexit, trade wars, Hong Kong riots, and recessions threatening, gold’s safe haven status saw it bound above $US1500/oz at month’s end.
Silver’s performance shadowed gold, peaking in early September at its highest price since 2016, before softening and then bouncing back right at the close.
Lithium prices continued to soften, but cobalt had a great month — hydroxide, sulphate and metal prices were up 20.9 per cent, 23.2 per cent and 17.3 per cent respectively, according to Benchmark Minerals Intelligence data.
The fundamentally bullish outlook for copper hasn’t changed for quite a while, but pundits call it ‘Doctor Copper’ because its performance correlates with the health of the global economy.
Which means that unlike gold, copper — which briefly fell to year-lows of ~US$5500/t — isn’t a strong performer when s&*t hits the fan.
So, it’s interesting that copper-facing explorers were among our top performers this month. In August 13.5 per cent of top movers had copper exposure; in September, that had increased to 19.7 per cent.
Silver and nickel explorers also made big gains, while gold had to settle with a smaller piece of the pie.
Two main patterns defined September’s winner’s column — big discoveries and company changing mergers and acquisitions. Let’s start with the discoveries.
In late September, our #1 mover Stavely Minerals (ASX: SVY) made a huge copper discovery at its namesake Victorian project.
Drilling assay results from the Thursday’s Gossan prospect revealed a monstrous shallow, very high-grade intersection — which included a ‘stunning’ 2m intersection grading 40 per cent copper, 3g/t gold and 517g/t silver. Insane stuff.
The market’s verdict? The explorer leapt ~330 per cent to $1 per share. But neighbouring explorer Navarre Minerals (ASX:NML) also benefitted from the find with a 36 per cent uplift.
Earlier in the month, Alkane (ASX:ALK) discovered something very, very big at its Northern Molong porphyry project (NMPP) in NSW. The stock went for a run and finished the month up about 78 per cent.
And once again, the neighbours benefited.
Magmatic Resources (ASX:MAG), which has ground encircling Alkane’s Boda discovery, was up 183 per cent for month.
Alice Queen (ASX:AQX) is just 700m away and received a very nice 137 per cent bump — mostly when it told investors that there was a good chance that Alkane’s mineralisation extended into their ground.
Mergers and acquisitions are a dependable way to inject life back into a sluggish small cap.
Last month, advanced Ghanaian gold explorer Azumah Mining (ASX:AZM) was hit with a hostile takeover bid from WA gold project joint venture partner, mining fund Ibaera Capital.
The 2.8c per share offer represented a big premium to Azumah’s historical share price — 100 per cent on the last closing price of 1.4c, and 48 per cent on the 12-month volume weighted average price of 1.9c per share.
In response, Azumah leapt 93 per cent for the month.
A number of our top 50 also jumped on project acquisitions (or potential acquisitions), including Sagon Resources (ASX:SG1) +80 per cent, Red Mountain Mining (ASX:RMX) +40 per cent, Hipo Resources (ASX:HIP) +62.5 per cent and Aldoro Resources (ASX:ARN) +28.5 per cent.
Here’s the top 50 mining small caps for the month of September>>>
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop