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The 18 small cap stocks revving Tolga Kumova’s engine right now

Tolga Kumova’s taste in high-powered cars reflects his status as one of Australia’s highest profile investment success stories – it’s … Read…

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This article was originally published by Stockhead

Tolga Kumova’s taste in high-powered cars reflects his status as one of Australia’s highest profile investment success stories – it’s probably little surprise the man drives a Ferrari.

What may surprise you, however, is the recent revelation in conversation with Stockhead of Tolga’s appreciation for a quiet drive. The sort of drive EVs are renowned for.

“The push towards electric vehicles is being driven politically around the world, but the reality is that in many ways they’re a better drive,” Kumova revealed.

“People talk about how they miss the sound when they sit in one of these new Teslas, but I must confess, I drive a Ferrari and it’s almost refreshing when the noise isn’t there.

“You can talk on the phone; you can talk to the person next to you – it’s a more relaxing experience.”

Our conversation had little to do with the mechanics of the auto industry and everything to do with resources stocks, but it didn’t take long to bridge the two given the enormous impact the world’s commitment to a greener future has had on commodity demand.

It’s a trend with ramifications for several market sectors, each which stand to benefit from global momentum towards a vision for change. To build an EV, you need batteries. To power an EV, you need energy.

The recent entry of Sprott Asset Management into the physical uranium market is a great example of this in practice, according to Kumova.

For so long maligned, uranium has celebrated a renaissance of recent times as the world wakes up to its potential as a clean source of energy. Sprott’s buying spree has driven the price to multi-year highs – it’s a space Kumova is watching with interest.

“I am a little cautious on the fact that as the spot prices go higher a number of operations will come back on and fill in the spot trust void,” he said.

“But there is a lot of reactors coming online in China and around the world at the moment, so it could well balance itself out – I am bullish on this commodity in the short term.”

Uranium’s draw is clear but like a phone call in a Ferrari, Kumova suspects another, lower profile commodity’s potential may be drowned out in some of the louder commodity noise.

“I actually think silica sands is a bigger opportunity with less risk than uranium,” he said.

“It goes back to the energy thematic for me – low iron silica sand is needed for the glass they use in solar panels, and when you’ve got a resource it’s almost a quarry operation.

“It’s not a large capex, high-tech process like it is with some other commodities.”

On the battery metals side of the coin is the nickel story, which alongside the booming lithium narrative and cobalt’s allure is showing plenty of signs of enduring for the long term.

Kumova said the actions of BHP in the nickel space, particularly its battle for Canadian company Noront Resources with Andrew Forrest’s Wyloo Metals, were well worth watching.

“Noront’s bidding hundreds of millions right now for what is a smallish resource in northern Ontario, but it is effectively exploration ground they’re after,” he said.

“That tells me they’re desperate for it with their nickel division – it shows the market just how passionate they are about the sector and what they’re thinking going forward.

“There’s a lot of opportunity across the battery metals space.”
 

The benefits of talking out loud

With much of the nation locked down in recent months, investment chatter on Twitter has reached new levels.

A prolific Twitter user, Kumova said his experience polling on the platform led him to believe that not all small cap investors were doing their due diligence before making financial commitments.

“There’s a reason I don’t use CommSec or any online broker services,” he said.

“I think it’s really important to talk to people about my ideas – actually running it past people and saying things out loud.

“Sometimes when you’re thinking about something, when you say it out loud you ether realise you look really silly – if you can’t explain something properly then it’s probably not worth doing.”

Kumova also stressed the importance of incorporating the opinions of people with experience on the board.

“In my experience if you’re getting specific information about a sector or industry from someone, you should always ask yourself what they’ve achieved before, or what they’ve seen before, or what they’ve done in the space,” he said.

“If you’re speaking to a broker, speak to one who has been successful before. If you’re speaking to a director of a company, speak to someone that’s done it; whether they’ve succeeded or failed at least they’ve tried.

“What I’m finding is people are listening to those who have very little experience in our sector and blindly accepting their information. It doesn’t really make much sense to me.

“People should only be taking advice from a licensed financial broker.”
 

Tolga’s top tips

As someone with runs on the board all of this begs the question – what does Tolga like on the ASX right now? The man himself ran through a series of small cap companies he believes are poised to make an impact over the next little while.
 

Aston Minerals (ASX:ASO)

Aston’s inclusion on this list should come as no surprise to those in the know. Not only is the Canadian explorer making waves with its yellow metal hits at its Edleston gold project in Ontario, Kumova is its executive chairman.

That should take little away from the company’s recent successes following up historical drill results, which have included numerous hits of visible gold in core.

“There’s one hole we drilled which had 35m with gold speckled through it,” Kumova said.

“It’s been frustrating because the labs have been incredibly slow – one of our biggest issues has been drilling holes but not getting the assays back, and not really knowing where the lodes are.

“But we have been guided by visible gold.”

Exploration has been furthered by drilling at the Sirola zone, 1.5km east of Edleston Main, where visible gold has been hit over a width of 500m.

A cross section of Aston’s Sirola zone, showing chargeability inversion model, recent drilling and rock chips. Pic: supplied.

“The deposits on this belt are not small,” Kumova said.

“This is definitely elephant country. You’ve got Timmins 60km to the north of us, which is 71 million ounces, and Kirland Lake to the east is 24Moz. Kerr Addison is 12Moz on this belt.

“Val D’or, to the other side of the Abitibi belt, is 20Moz. When this belt mineralises, and there’s an event deposit, it’s usually very large.”

It’s not just gold potential that excites Kumova about Edleston.

As BHP and Wyloo battle it out for control of Noront in Ontario, Aston has identified a magnetic high structure at Edleston which management believes may be nickel-PGE-cobalt bearing.

The anomaly is more than 5km long and 1.5km wide, and geophysics tracks it to 800m deep. Early drilling is underway.



 

African Gold (ASX:A1G)

African Gold made headlines this week when it reported bonanza gold in screen fire assays from the Didievi gold project in Cote D’Ivoire, including 10m at 123g/t (!!) from 66m.

That assay included 2m at 613g/t gold – astounding stuff.

Kumova is a board member at A1G, where drilling has confirmed the presence of a large gold system over an area of at least 1.5km by 1km and open in all directions.

“This project has had some really large hits lately,” Kumova said, before this week’s news dropped.

“This thing had some standout hits including 83m at 3.3 grams per tonne, 89m at 3g/t, 17m at 6.3g/t, 17m at 5.4g/t, 43m at 4.3g/t, 37m at 7.7g/t – big numbers.”

Add to that 17.4m at 17g/t from 244m, including 1m at 216g/t, also announced in Wednesday’s release.

On top of the impressive width of mineralisation in the assays, Kumova highlighted the project’s proximity to the nearby Agbaou and Bonikro projects.

“Those projects are about 2-3Moz tonne per annum processing plants each, but Agbaou actually runs out of ore late next year so it will need feed,” he said.

“Our project doesn’t have a resource yet, but our first campaign has come back with some really nice numbers – it looks high grade, it looks large, and it may well have a natural home without having to build a plant.”

Kumova
African Gold’s projects in regional context. Pic: Supplied


 

Firebird Metals (ASX:FRB)

A recent spinout of Firefly Resources, Firebird’s flagship is the Oakover manganese project in Western Australia which stands to gain from commodity’s battery demand.

The project has a mineral resource of 64 million tonnes at 10% manganese – a solid technical base on which the company plans to build through infill and extensional drilling, with ore sorting and gravity testwork also underway.

“One of the main reasons why I like this is the direct comparison with E25’s Butcherbird project, which is in the same region,” Kumova said.

“E25’s market capitalisation today is around $340 million, and Firebird, which has a comparable deposit, is $30 million.

“It will be a matter of going through the process. You’d expect it to be similar processing to E25, a similar market, but the best thing about it is E25 has already shown the proven path to get into operation and production – it’s a case of following those steps.

“They’ll probably get to use similar consultants, who know what works and what doesn’t. It’s a matter of following that path.”



 

Valor Resources (ASX:VAL)

An exploration play with a copper-silver project in Peru and uranium opportunities in Saskatchewan, Canada’s Athabasca Basin.

It’s the latter of these two which has recently caught the attention of investors. Valor dropped some serious rock chip samples from the Hook Lake uranium project at the end of August, with uranium oxide grades as high as 59.2% with rare earths, lead and silver potential to boot.

Kumova said the mineralisation combination was unique.

“To have all of those minerals in the same place is incredibly exciting,” he said.

“I’ve been looking to find analogous deposits and I just can’t, I haven’t seen it and I couldn’t find anything like it.

“When it comes to these types of grades, especially in uranium, normally you’re going for parts per million mineralisation – 59% is enormous.

“With that sort of grade you don’t need kilometres of mineralisation – 200m could be a deposit.”

Kumova
A uraninite float sample found east of Valor’s Hook Lake prospect. Pic: supplied.

Kumova said if drilling defined any kind of strike extent or thickness it could be one to take off.



GTI Resources (ASX:GTR)

 
Another in the uranium stable is GTI, which recently acquired in-situ recovery (ISR) uranium projects in Wyoming to complement its Henry Mountains hard rock assets near the White Mesa Mill in Utah.

The recently acquired projects give GTI the largest non-US, Russian or Canadian owned uranium exploration landholding in the prolific Great Divide Basin.

ISR accounts for around 90% of US uranium production and has accounted for 100% of Wyoming’s uranium production since 1993.

“With all that’s happening in uranium at the moment this thing will be another to keep an eye on,” Kumova said.

As well as the ground, the company has engaged senior Wyoming uranium experts to assist with its exploration efforts in the region.

Kumova
GTI’s project holding in Wyoming. Pic: Supplied.

 



Raiden Resources (ASX:RDN)

 

A dual-listed company, Raiden has identified the Arrow gold and Mt Sholl nickel-copper-PGE projects in the Pilbara as its key strategic priorities over the next two years.

That comes with good reason – a program of work was recently approved for Arrow with contractors engaged to tender on an initial RC program to test early targets.

“Arrow is literally abutting De Grey’s (ASX:DEG) Mallina gold project – 35km from Hemi, and it has multiple intrusives,” Kumova said.

“There’s gold anomalies in the soils, and now it’s got to a point where they’re about to start drilling with a market cap around $20 million or thereabouts.

“It also has some nickel interests in that part of the world at Mt Sholl, and there’s some interesting things happening up with its copper-gold projects in Serbia and Bulgaria.”

Kumova
Raiden’s suite of Pilbara projects. Pic: supplied.



 

Alderan Resources (ASX:AL8)

Not the planet (that’s spelled Alderaan). Alderan is a US focused copper-gold explorer with projects in Utah.

The company’s flagship is the Detroit project, south of Rio Tinto’s Bingham Canyon/Kennecott copper mine, which it says has strong potential for porphyry related and Carlin-like copper and gold deposits. Surface exploration results have been promising so far.

“There was one hole drilled near the target previously, which came back with all the hallmarks of copper-gold porphyry mineralisation,” Kumova said.

“That was just off the structure, and then they stopped drilling. A recent placement will fund the next program, which is being drilled in a couple of weeks to test those targets.”


 

Perpetual Resources (ASX:PEC)

PEC is currently updating the ore reserve for its Belharra project, following a phase of aircore infill drilling results which confirmed high grade white silica sand at the project.

The company is also undertaking bulk representative composite metallurgical testwork on white sand samples from the project, after releasing a compelling PFS in March.

“They’re just going through the process right now to confirm their white sands, so the low iron content material,” Kumova said.

The company has an eye to offtake once the tests are completed. Results are expected this month.

Kumova
Phase 3 drilling at PEC’s Belharra project in WA. Pic: supplied.



 

Industrial Minerals (ASX:IND)

Also in the sand game is IND, with a number of assets including the Gingin, Stockyard, Unicup and Quins projects.

“IND is earlier stage than PEC but at Stockyard doesn’t have to go through the same permitting processes though the EPA as some other players in the region,” Kumova said.

“IND doesn’t have that issue because the deposit is actually partly on farmland.

Kumova
A cleared paddock at Industrial Minerals’ Stockyard project. Pic: Supplied.

“It was a paddock but now it’s effectively just white sand, which isn’t very good for farmland either.”

An aircore rig was recently secured for up to 10,000m across the projects, designed to test new targets and validate historical drilling on each.



 

Benz Mining Corporation (ASX:BNZ)

A Canadian gold play, Benz’s flagship is the Eastmain gold project, which spans the upper Eastmain greenstone belt 320km northwest of Chibougamau and 800km north of Montreal.

The company recently completed a placement to raise C$10 million at an 80% premium to its prior TSXV closing price, with funds to be used to advance exploration and build on the project’s 376,000oz resource at 7.9g/t gold.

Kumova
Visible gold in core from Eastmain. Pic: Supplied.

“They’re exploring what is essentially an entire belt,” Kumova said.

“It’s like exploring the entire Wiluna. It’s quite amazing that it was open to be pegged and acquired for the price it was once upon a time.

“There’s also lithium there; there’s an outcrop of 60m by 25m where they’ve taken samples up to 4.7% lithium from surface.

“There’s historical copper hits there as well, as well as historical nickel.”


 

Meteoric Resources (ASX:MEI)

An old pit, Meteoric’s Palm Springs project resource has gone from 0oz to 355,000oz in its first year with successful drilling ongoing.

“There’s a plant close by, about 40km away, that would love its feed to extend its life,” Kumova said.

One recent drill hole hit multiple zones of visible gold over 79m, with assays pending.

Meanwhile, significant molybdenum and copper sulphides have been observed over 600m of core at the company’s Juruena project in Brazil.

“They know they’re in the porphyry, they just need to understand how mineralised it is,” Kumova said.


 

Firefly Resources (ASX:FFR)

Firefly is in the process of merging with Gascoyne Resources (ASX:GCY).

That’s a move which will strategically consolidate FFR’s higher-grade Melville mineral resource of 196,000oz at 1.54g/t and the Dalgaranga production hub just 100km away by road.

The move will allow the combined company to leverage the sunk capital spend at Dalgaranga’s processing facility while accelerating the development of Melville.

The ground around Melville and the broader Yalgoo gold project includes more than 100 targets, with 30 at untested historical working with recorded gold production.

“Mining the Melville ore will make a significant difference to their profit,” Kumova said.


 

Plays for the watchlist (ASX:CVS, BNR, GGE, FME, KFM, GLV)

Kumova also flagged a mixed bag of stock tickers worth keeping an eye on, from smaller shells to those with interesting exploration assets.


 

The post The 18 small cap stocks revving Tolga Kumova’s engine right now appeared first on Stockhead.

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Monsters of Rock: IG’s top two miners to watch this week

Whitehaven Coal (ASX:WHC) and Northern Star Resources (ASX:NST) are two large cap miners worth keeping an eye on in the … Read More
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Whitehaven Coal (ASX:WHC) and Northern Star Resources (ASX:NST) are two large cap miners worth keeping an eye on in the week ahead, according to trading platform IG Markets.

Despite general concerns about global growth and subsequent drop in global bond yields, gold prices fell throughout last week.

The drop in the value of the yellow metal weighed on Aussie gold miners like Northern Star.

Northern Star’s share prices fell to two-year lows as investors reduced exposure to gold-mining stocks, to close below what was price support at roughly $8.80 per share.

“The technicals look quite poor for the stock now, with the trend and price momentum skewed to the downside,” IG analyst Kyle Rodda says.

“The next major level of long-term price support looks to currently sit at around $7.65 per share.”

The stock was down another 1.15% in Monday trade.

 

At the other end of the spectrum was Whitehaven Coal, which surged last week.

Global coal prices jumped to a record high as energy demands spikes on what is an unfolding and worsening energy shortage globally.

“Whitehaven shares look to be forming a primary uptrend now, with the weekly RSI showing a stock that is technically overbought, but that that is not signalling yet a meaningful slowdown in momentum,” Rodda says.

“WHC shares probably remain highly tied to the budding energy crisis now and any further upside in coal prices, and in the short-term, risk-reward appears skewed to the downside given the stock’s overbought technicals.

“A re-test of previous price resistance now support at around $2.50 may indicate whether the stock’s longer term uptrend remains in play.”

WHC was down 2.5% in late arvo trade.


 

Iron ore miners up as Materials ekes out small gain

Pic: CommSec

The ASX 200 Materials index was up ~0.15% at close of play Monday, dragged higher by the major iron ore miners BHP (ASX:BHP), Rio Tinto (ASX:RIO), FMG (ASX:FMG) and Mineral Resources (ASX:MIN).

The benchmark iron ore price – down 30% year-to-date – has staged a small comeback to ~$US110/t since going into the low 90’s on September 21.

In the mid cap space, +$1bn market cap lithium hopeful AVZ Minerals (ASX:AVZ) led the winners after securing a “cornerstone investor” for its Manono development in the DRC.

Private Chinese company CATH will pay US$240 million cash for an initial 24% equity stake in the project.

“Proceeds from the transaction will fund a majority of the total project financing required, whilst AVZ will retain a controlling 51% interest in the Manono Project post-completion of the transaction and its position as lead developer of the Manono Project,” the company says.

The post Monsters of Rock: IG’s top two miners to watch this week appeared first on Stockhead.

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This ASX-listed iron ore developer is well placed to benefit from the shift to high grade ore

Special Report: All eyes have been on the price of iron ore in recent days as volatility in the iron … Read More
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All eyes have been on the price of iron ore in recent days as volatility in the iron ore price has had a big impact on markets.

But while that is where the focus is in the here and now, there remains a story bubbling under the surface about where iron ore is headed in the future.

Increasingly, iron ore experts believe grade will be an important factor for steel mills, as efforts to curb emissions and pollution from steelmaking take centre stage.

Take this comment for instance from Fastmarkets index manager Peter Hannah, who observes iron ore markets for one of the two major price-reporting agencies.

“To succeed in decarbonizing the global steelmaking industry there needs to be a greater recognition of how much the iron ore supply base needs to change,” he wrote recently.

“Vast volumes of existing production will need to be replaced by higher-grade supply, first to meaningfully reduce CO2 emissions from the prevailing BF/BOF (blast furnace) technology, and later to meet the demands of a DRI (direct reduced iron) sector at least an order of magnitude larger than it is today.”

The gap for discounts and premiums in iron ore have soared in recent years. Pic: Supplied

 

As Magnetite Mines (ASX:MGT) showed in a presentation released on Friday, it is one of a handful of iron ore hopefuls able to capitalise on this growing thematic.

Its Razorback mine in South Australia is now in the Definitive Feasibility Study stage leading to decision to mine, planning to start operations around the end of 2024. It would produce a 68% iron magnetite concentrate.

That is well above any commonly quoted indices like the 65% Brazilian index, which already generates an substantial premium compared to the commonly quoted benchmark 62% fines price.

While the 62% iron ore index – used by most of the Pilbara iron ore miners such as BHP –  was fetching US$108.67/t on Friday morning, 65% iron ore demanded US$134.60/t.

In the long run over the past decade the gap between discounted 58% iron ore, 62% product and premium product has trended wider and wider.

“Steelmakers need to adopt best practices that prioritise decarbonisation with existing assets. Some of these best practices include installation of energy efficient technology, optimisation of the blast furnace (BF) burden (e.g. with high- grade ore),” CRU Group says.

 

Razorback a logistical dream

While grade is one aspect of Razorback’s allure, it is not the only reason Magnetite Mines has been so keen to push ahead with a definitive feasibility study after releasing a successful PFS in July.

The mine, which has a resource of 4.2Bt of iron ore, stands to be a logistical dream. Located just 240km northeast of Adelaide, it has access to rail and high voltage powerlines that connect it to the Australian electricity grid.

That is significant from an ESG perspective as well because of South Australia’s high penetration of wind power and other renewables, which met around 60% of the State’s electricity needs last year.

Being in the vicinity of the town of Yunta, Razorback will have a 50km purpose built private all weather haul road and rail siding with access to an existing heavy freight network and iron ore port at Whyalla.

From a mining perspective it is also technically simple. Ore can be mined from surface, saving costs on pre-stripping with a low PFS strip ratio of 0.16:1 and the potential to improve grades with selective mining and or ore sorting.

Razorback is close to key infrastructure like power, rail and ports. Pic: Magnetite Mines

 

Low cash costs underpin long-life operation

Once built, the project is highly competitive.  As reported in Magnetite’s pre-feasibility study in July, the project is expected to generate cash when the 62% iron ore price is above  US$54/t (including the appropriate quality adjustment).  That would still be half the iron ore price on Friday, after the contraction seen in the benchmark 62% fines price in recent weeks.

At US$110/t, around the long-term average iron ore price over the past 10 years, Razorback would carry a post-tax NPV of $700 million and IRR of 20%, generating around $144 million a year in net cash flow after taxes and royalties.

At a production rate of 2.7Mtpa, the project would pay back its estimated $675m capex in 4.6 years, leaving two decades of reserves still to go.

If we were to see another bull run to US$150/t – and remember, at a 68% grade, Razorback’s concentrate would earn a premium on that – that would increase to an NPV of $1.67 billion, with an IRR of 33% and average net cashflow of $241m, something that would see Magnetite pay back its initial investment in just over 2 years.

Key results from the Razorback PFS. Pic: Magnetite Mines

 

DFS activities under way with appointment

Magnetite Mines this week appointed engineering and professional services company GHD to deliver its critical power supply and non-process infrastructure elements of the Razorback DFS, effectively kickstarting the process.

It will build on the power supply option selected from the DFS of installing a 132KV transmission line connecting to the national grid at Robertstown.

“GHD’s appointment is an important milestone for Magnetite Mines as it represents the commencement of the DFS and continues our commitment to delivering a well planned and high quality study for our shareholders,” Magnetite Mines executive chairman Peter Schubert said last week.

The DFS well underway and currently expected to be completed next year, with a decision to mine looking to be at the end of next year.  Project financing and permitting will take place in parallel.  The current schedule sees Razorback in production around the end of 2024, well placed to benefit from a stronger ESG focus in the mining and steel industries.

On the approval side of the ledger, work is well underway. South Australia is a predictable, stable and low risk mining jurisdiction and there is regular consultation between Magnetite and the State Government.

Baseline environmental studies are also well progressed, while the important consultation process with the people of the Ngadjuri Nation, the region’s traditional owners has started, reflecting the company’s acknowledgement of and respect for the traditional owners of the country.

Magnetite Mines is on track with its proposed development timeline. Pic: Magnetite Mines

 

Braemar district fertile for further development

While Magnetite has unlocked an impressive 5.7bt of resources across its Razorback (4.2Bt) and Muster Dam (1.5Bt) projects, that does not tell the full story of just how fertile the Braemar region is for iron ore discoveries and developments.

Of that bounty just 473Mt is included in the Razorback PFS reserve.

That factors in just 8% of Magnetite’s resource, 4% of the Braemar region’s kilometres long strike length and 0.3% of Magnetite’s tenured area.

That suggests Magnetite should have room to grow and expand beyond its initial 25-year project should the numbers stack up.

Its long life and plentiful resource and reserve base should be attractive to lenders, with Magnetite targeting early engagement to allow a collaborative approach to risk mitigation and achieve financial close by the fourth quarter of 2022.

Debt funding is likely to be complemented by a conventional equity raising or other options for equity funding.

Magnetite has $15.3m in the bank to progress its all important DFS, and a market cap of $69m as of September 21.

MGT stock is around 170% up over the past 12 months despite a dip after PFS release, but it has caught some tailwinds in recent days as investors responded well to news about its DFS preparations, rising by almost 29% from 2.1c a share to 2.7c a share over its past three trading days.

This article was developed in collaboration with Magnetite Mines, a Stockhead advertiser at the time of publishing.

 This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post This ASX-listed iron ore developer is well placed to benefit from the shift to high grade ore appeared first on Stockhead.

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ASX Small Cap Lunch Wrap: Who’s outperforming Warren Buffett today?

A hamster in the US has a portfolio up by around 20% since June, outpacing the S&P500 and Warren Buffett’s … Read More
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Ever wished you were as rich as Warren Buffett?

Or perhaps more accurately; sometimes feel like you’re just a hamster running on a wheel?

Some enterprising crypto investors have made that idea work for them, with a unique hamster-based investment strategy.

According to reports, the hamster — Mr Goxx — dutifully runs on his wheel and in doing so, also selects from a range of different cryptocurrencies.

The wheel is uniquely designed for Mr Goxx to choose one of two tunnels, which indicate buy or sell.

And apparently his portfolio is up by around 20% since June, outpacing the S&P500 and Warren Buffett’s Berkshire Hathaway.

So if your fundamental analysis of ASX small caps isn’t bringing returns, there are options…

Elsewhere, the idyllic, resource-rich locale of Perth, Western Australia, has been run over by some rampant demons following Melbourne’s AFL Grand Final victory on Saturday night.

208cm ruckman Max Gawn stayed in game-shape following the financial siren, taking hangers while still dressed in his match guernsey:

On markets, ASX futures markets suggested the local index was going to edge higher (maybe) before the opening bell, but local stocks have beaten expectations as upbeat sentiment permeates through Monday trade.

Just after 12pm EST the ASX 200 was on track for a gain of around 1%, with steady demand across all the major sectors.

Energy stocks kept the ball rolling after last week’s big rally, and the ASX 200 Energy index has now climbed by an impressive 10.6% since last Monday’s selloff.

Brent crude oil is trading at three-year highs above US$78 a barrel, as consensus around a global energy supply crunch continues to build.

Along with the ASX, positive sentiment extended across Asian markets with steady gains across the other major indexes including the Hang Seng (home of Evergrande) which rose by more than 1%.
 

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for Monday September 27 [intraday]:

Stocks highlighted in yellow made market-moving announcements.

Code Name Price % Change Volume Market Cap
NTL New Talisman Gold 0.002 100.0% 1,184,051 $2,792,225
ANL Amani Gold Ltd 0.0015 50.0% 3,911,521 $14,205,197
RRR Revolverresources 0.43 38.7% 2,941,576 $25,380,460
RBX Resource B 0.28 36.6% 5,717,568 $6,959,255
DDD 3D Resources Limited 0.004 33.3% 125,305 $11,641,116
OAK Oakridge 0.002 33.3% 1,080,116 $5,158,939
ARR American Rare Earths 0.22 22.2% 4,175,115 $62,065,499
ARU Arafura Resource Ltd 0.235 20.5% 21,478,573 $302,239,730
AO1 Assetowl Limited 0.006 20.0% 155,000 $4,081,026
RBR RBR Group Ltd 0.006 20.0% 1,030,125 $6,409,900
AJL AJ Lucas Group 0.038 18.8% 966,220 $38,281,172
POW Protean Energy Ltd 0.013 18.2% 1,476,795 $7,156,743
IMC Immuron Limited 0.165 17.9% 937,744 $31,814,523
IXC Invex Therapeutics 0.8 17.6% 237,582 $51,104,617
LEL Lithenergy 0.695 16.8% 3,327,351 $26,775,000
GGX Gas2Grid Limited 0.0035 16.7% 2,054,000 $12,138,306
PEB Pacific Edge 1.52 16.0% 139,756 $955,265,080
POL Polymetals Resources 0.145 16.0% 31,562 $4,852,907
TBA Tombola Gold Ltd 0.044 15.8% 1,546,928 $24,103,240
OZM Ozaurum Resources 0.15 15.4% 292,127 $7,438,080
HWK Hawkstone Mng Ltd 0.046 15.0% 22,265,624 $68,793,777
BMR Ballymore Resources 0.25 14.0% 20,000 $15,725,178
AVL Aust Vanadium Ltd 0.025 14.0% 5,913,983 $72,178,161

 

Recent ASX debutante Resource Base (ASX:RBX) is getting into the rare earths game, where a number of other ASX juniors are running hot.

The company announced that its snapped up 1,380sqkm of ground in the Murray Basin, which is prospective for ionic clay hosted Rare Earth Elements (REE).

Elsewhere among stocks with news, biopharmaceutical company Invex Therapeutics (ASX:IXC) jumped by around 20% after announcing a long-term Collaboration and Manufacturing Agreement with Peptron Inc — a company listed on the Korean Stock Exchange.

The deal will see Peptron use Presendin — IXC’s treatment for neurological conditions relating to raised intracranial pressure — in clinical trials and for commercial use, once Presendin is approved.

The agreement is “exclusive, applies globally and provides a defined price per dose for the supply of Presendin for clinical studies, and for the first ten years following the first commercial sale,” IXC said.

Get the wrap of the rest of today’s resources winners here.
 

ASX SMALL CAP LOSERS

Here are the best performing ASX small cap stocks for Monday September 27 [intraday]:

Stocks highlighted in yellow made market-moving announcements.

Code Name Price % Change Volume Market Cap
AJY Asaplus Resources 0.04 -33.3% 20,000 $8,160,000
ACB A-Cap Energy Ltd 0.085 -26.1% 2,448,518 $100,266,760
NPM Newpeak Metals 0.0015 -25.0% 992,527 $13,654,870
BDC Bardoc Gold Ltd 0.045 -21.1% 28,783,076 $98,909,670
EN1 Engage:Bdr Limited 0.004 -20.0% 1,999,249 $12,764,763
YPB YPB Group Ltd 0.002 -20.0% 100,000 $12,479,551
AEE Aura Energy 0.21 -17.6% 2,317,954 $101,784,941
SCN Scorpion Minerals 0.052 -14.8% 108,000 $15,800,903
CUL Cullen Resources 0.018 -14.3% 1,368,921 $7,852,271
EVE EVE Investments Ltd 0.0035 -12.5% 2,082,615 $15,372,568
TOE Toro Energy Limited 0.029 -12.1% 37,032,041 $128,612,292
OZZ OZZ Resources 0.19 -11.6% 212,469 $5,795,674
WFL Wellfully Limited 0.155 -11.4% 915,577 $36,718,582
VMY Vimy Resources Ltd 0.1775 -11.3% 4,532,779 $210,299,732
EL8 Elevate Uranium Ltd 0.56 -11.1% 777,573 $143,780,897
RD1 Registry Direct 0.033 -10.8% 184,545 $13,037,813
AGE Alligator Energy 0.068 -10.5% 42,201,863 $212,357,592
LME Limeade Inc. 0.71 -10.1% 17,193 $197,294,227
AGR Aguia Res Ltd 0.046 -9.8% 98,089 $17,031,064
PEN Peninsula Energy Ltd 0.23 -10.0% 6,774,820 $253,984,637
BBX BBX Minerals Ltd 0.19 -10.0% 365,091 $96,184,510
AMO Ambertech Limited 0.29 -9.0% 208,389 $24,622,932
COD Coda Minerals Ltd 0.79 -9.0% 69,456 $79,566,922

The post ASX Small Cap Lunch Wrap: Who’s outperforming Warren Buffett today? appeared first on Stockhead.

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