Metal & mining based small cap company, EHR Resources Limited (ASX: EHX) with a market cap of $17.73 million has shown a phenomenal growth of 50 percent in its stock price (as of 17 January 2020) compared to its previous closing price. Also, the stock has delivered an exponential growth in returns for 6 months and 1-year time spans. Another metal & mining company, Rafaella Resources Limited (ASX: RFR) with a market cap of $10.56 million witnessed significant growth of 30 percent in its stock price (as of 17 January 2020) compared to its previous closing price. In the same timeframe, small-cap companies such as ZipTel Limited (ASX: ZIP) from the communications sector and Creso Pharma Limited (ASX: CPH) from health care space have also shown positive returns of 25 and 20 percent respectively compared to their previous closing prices.
Reasons for these significant growth in stock prices of these companies may pertain to a major deal of Santa Combo Project for Rafaella, strategy to expand diamond segment of EHR Resources Limited by means of an acquisition, issuance of new securities by ZipTel Limited and Creso Pharma Limited.
Rafaella Resources Limited (ASX: RFR)
Listed on ASX in July 2018, Rafaella Resources Limited (ASX: RFR) is into the business of exploration and development of minerals located globally. The company owns and develops Santa Comba tungsten and tin project in Spain. Other than Spain, the company executes projects in Australia and Canada, namely, Sandstone gold exploration project and McCleery cobalt and copper exploration project, respectively.
Santa Comba Project Deal: Rafaella has a development strategy to address Tungsten demand which is not completely met by the limited supply from China. On 27 May 2019, RFR announced an agreement to acquire Galicia Tin & Tungsten S.L. (GTT), which is the owner of Santa Comba development project located in North Western Spain. Switzerland based company, Transamine Trading S.A. has agreed to provide strategic support to the project including logistics and marketing services and an offtake agreement. The company will also make an equity investment of $1.5 million in RFR.
Director’s change in securities: Regarding the change of Directors’ interest in securities, RFR notified the market about the same, as mentioned below.
- On 8 January 2020, Peter Hatfull increased the number of indirect fully paid ordinary shares to 150,000, after acquiring 100,000 shares for $ 0.095 per share.
- Previously, on 30 December 2019, Peter Hatfull acquired 50,000 indirect fully paid ordinary shares for $ 0.097 per share.
- On 16 December 2019, Steven Turner acquired 700,000 direct fully paid ordinary shares for $ 0.10 per share, in addition to its previously held 1,144,237 indirect fully paid ordinary shares.
Stock Performance –
On 20 January 2020, the stock of RFR last traded at $ 0.150 (at AEDT 03:29 PM), with no change compared to its previous closing price. The company has outstanding shares of around ~ 70.43 million. Also, RFR has a market capitalisation of nearly $ 10.56 million. The stock has delivered a return of 3.45 percent and 82.93 percent in the last six months and one-year span, respectively.
EHR Resources Limited (ASX: EHX)
An ASX-listed company, EHR Resources Limited (ASX: EHX) is into the business of mining, exploration and production of mineral (Gold, Copper, Diamond) and metal resources. EHX has operations spread out in Australia.
Sudden rise in the stock price: On 17 January 2020, the company has been questioned by ASX regarding the increase in EHX stock price in the intraday trading from low of $ 0.082 to the high of $ 0.15. To which, company along with all the directors have confirmed that they are unaware about any such information which led to the increase in security prices. Other than this, EHX mentioned that it is about to release a notice in connection to the acquisition deal that they have entered with Nanuk Diamonds Inc. on 6 December 2019.
Appointment of Mr Peter Ravenscroft: On 13 December 2019, the company appointed Mr Peter Ravenscroft as a Non-Executive Director on their board, with a purpose to channelize his expertise in achieving company’s strategy.
Acquisition of Nanuk Diamonds Inc.: As an initiative to pursue the corporate strategy to focus on upstream diamonds business especially in the Canada region, on 6 December 2019, EHX announced that it has entered into an agreement to acquire 100 percent equity interest in Nanuk Diamonds Inc. There were two sellers in Nanuk with each having 50 percent stake, namely, Prospect AG Trading Pty Limited and Quebec Inc. The total value of the deal is $ 1 million with 20 million fully paid ordinary shares issued at $ 0.05 per share.
Stock Information –
On 20 January 2020, the stock of EHX last traded at $ 0.120 (at AEDT 03:30 PM), moving downwards by 14.286 percent, compared to its previous closing price. The company has outstanding shares of around ~ 126.67 million and a market capitalisation of nearly $ 17.73 million.
ZipTel Limited (ASX: ZIP)
Listed on ASX in June 2014, ZipTel Limited (ASX: ZIP) is a telecommunication company which delivers solutions in international calling and roaming facility. ZIP has two core products which are distributed domestically and internationally, namely, AussieSim and ZipT.
Director’s change in securities: ZIP notified the market that one of its directors, Mr Umberto Carmelo Mondello changed his interests in the company on 29 November 2019. Mr Mondello acquired 4,000,000 ordinary shares.
Announcement of additional securities: On 29 November 2019, the company issued 4,000,000 fully paid ordinary shares at an issue price of $ 0.013 per share.
Stock Performance –
On 20 January 2020, the stock of ZIP last traded at 0.015 (at AEDT 03:30 PM), with no change compared to its previous closing price. The company has outstanding shares of around ~ 189.13 million. Also, ZIP has a market capitalisation of nearly $ 2.84 million. The stock has delivered a return of 25 percent and 15.38 percent in the last six months and one-year span, respectively.
Creso Pharma Ltd (ASX: CPH)
ASX-listed company, Creso Pharma Ltd (ASX: CPH) is into the business of providing cannabis products to humans and animals. CPH follows GMP (Good Manufacturing Practices) standards for manufacturing and development of its products. The company’s products are developed in five major categories, namely, Animal health, Lifestyle, Nutraceuticals, Therapeutics and Topicals. With its headquarters situated in Australia, CPH has operations in Canada, Colombia, Israel and Switzerland.
On 17 January 2020, company released its quarterly results for December 2019. Key highlights are as below.
- Revenue for December ending quarter is $1.986 million. Also, the company has shown an exponential increase in revenue for FY 2019 ($3.651 million), which is 499 percent growth from that in the previous year.
- One of the segments, named, Nutraceutical and animal health product has significantly contributed in the financials of the company, with revenue increase of 500 percent from $ 0.556 million (in FY 2018) to $ 2.774 million (in FY 2019).
- As at 31 December 2019, cash in hand with the company was $ 2.812 million.
Plan for FY 2020:
- Commercialisation for nine new products are in pipeline for 2020
- In Q1 2020, company plans to launch cannaQIX® product range in South Africa via. its partnership with South Africa based pharmaceutical company, Pharma Dynamics (subsidiary of Lupin Limited).
- Benefiting from the partnership with Pharma Dynamics, the company would engage in commercialisation of its products in other African countries, including Angola, Botswana, Lesotho, Namibia, Mozambique, Swaziland, Uganda and Zimbabwe.
Stock Information –
On 20 January 2020, the stock of CPH last traded at 0.190 (at AEDT 03:30 PM), moving upwards by 5.556 percent, compared to its previous closing price. The company has outstanding shares of around ~ 174.12 million. Also, CPH has a market capitalisation of nearly $ 31.34 million.
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