Small-cap Zone: EUR, SIL, MMM, GIB

Small-cap Zone: EUR, SIL, MMM, GIB

When it comes to investing in the small-cap space of the stock exchange, there is often a relatively higher risk when compared to large and mid-cap. However, investing in small-cap stocks also provides an opportunity to increase the value of one’s portfolio, as the small-cap company is likely to increase its business over the span of time.

Let us look at four ASX-listed small-cap companies and their recent updates:

European Lithium Limited

European Lithium Limited (ASX: EUR) is engaged in the exploration of lithium in Australia and was officially listed on the ASX in 2010.

Long-Term Debt Facility

EUR, a lithium exploration company recently announced about a long-term debt facility along with a Swiss-based sophisticated investor which amounts to EUR7,500,000. Helvetican International AG has introduced this faciity. The company also outlined the following:

  • The Debt Facility would enable EUR to wrap up the DFS at the Wolfsberg Lithium Project (Austria). This facility would also allow to repay the residual amount, which is due under the current convertible note facility.
  • The facility would change the present $10 million convertible note facility of EUR with Winance Investment LLC.

For the three months ended 30th September 2019, the company provided an update for its activities. EUR issued 5.3 million shares to raise a cash amount of $477,000. With respect to Magna Financing Facility, the company stated that Magna has converted 150,000 notes and redeemed 434,782 notes during the September 2019 quarter. Magna had 103,260 convertible notes remaining as at 30 September 2019.

The stock of EUR closed the day’s trading session at $0.100 per share on 3rd January 2020, reflecting a rise of 14.94% from its previous closing price. The company has a market capitalisation of $53.87 million as on 3rd January 2020. The total outstanding shares of the company stood at 619.22 million, and its 52-week low and high is $0.073 and $0.180, respectively. The stock has generated negative returns of 4.40% and 1.14% in the last three months and six months, respectively.

Smiles Inclusive Limited

Smiles Inclusive Limited (ASX: SIL) is engaged in the operation of 56 dental practices across Australia and the focus of the business revolves around creating a sustainable platform to allow continued organic growth as well as return to acquisition growth when appropriate. The company recently announced that sale of Gatton and Laidley practices to 1300 Smiles Limited has been completed.

In another update, the company announced that Supreme Court of Queensland has given a judgement in favour of the company by setting aside the statutory demand served on the SIL by Future Care Mobile Dentistry Pty Ltd. Smiles has also been awarded costs which were related to its application to set aside the statutory demand.

Below is a brief overview of SIL’s 2019 key performance outcomes:

The stock of SIL closed the day’s trading session at $0.069 per share on 3rd January 2020, reflecting a rise of 35.294% from its previous closing price. The company has a market capitalisation of $6.8 million as on 3rd January 2020. The total outstanding shares of the company stood at 133.25 million, and its 52-week low and high is $0.029 and $0.367 respectively. The stock has delivered a total return of 6.25% in the last three months.

Marley Spoon AG

Marley Spoon AG (ASX: MMM) is a supplier of prepared meal to consumers, distributors and other commercial or private customers.

Strong Rise in Revenue

The company recently notified the market with the performance for the three months ended 30th September 2019 and outlined the following:

  • For the Q3 FY19, the company reported a rise of 38% in revenue against the pcp. While YTD revenue was up by 49% versus pcp, with the US and AU segments showing strong growth, with a rise of 59% and 54%, respectively.
  • The company experienced a rise in its operating cash flow to € (6) million as compared to € (11) million in Q3 2018.

The stock of MMM closed the day’s trading session at $0.350 per share on 3rd January 2020, reflecting a rise of 25% from its previous closing price. The company has a market capitalisation of $44.39 million as on 3rd January 2020. The total outstanding shares of the company stood at 158.52 million, and its 52-week low and high is $0.180 and $0.885 respectively. The stock has delivered negative returns of 38.46% and 62.67% in the last three months and six months, respectively.

Gibb River Diamonds Limited

Gibb River Diamonds Limited (ASX: GIB) is engaged in the exploration of minerals. The company was officially listed on the ASX in 2008. Over the Ellendale diamond mine and project area, GIB announced about the acquisition of leases. The GIB lease areas at Ellendale would be covered by 3 Mining Leases, 2 Exploration Licences, 11 Prospecting Licences as well as 1 Miscellaneous Licence. Considerable interest from diamond related parties have been received, in relation to the late November field trip to the Blina Diamond Project.

The company continues to focus and work towards securing funding for the Blina Diamond Project via the sale of the Highland Plains phosphate project and is positive about a deal, which would be secured. At the end of September 2019 quarter, the cash balance of the company stood at $1.06 million

The stock of GIB closed the day’s trading session at $0.065 per share on 3rd January 2020, reflecting a rise of 14.035% from its previous closing price. The company has a market capitalisation of $10.21 million as on 3rd January 2020. The total outstanding shares of the company stood at 179.08 million, and its 52-week low and high is $0.016 and $0.077 respectively. The stock has delivered a total return of 96.55% and 42.50% in the time period of three months and six months, respectively.


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