While investing in the stock market, an investor comes across various classes of assets, such as equity and bonds. When it comes to investing in equity, there are choices like large-cap, mid-cap and small cap. Investment in small-cap comes with higher risk in comparison to large-cap and mid-cap, as these companies are not well established and are relatively less capable to bear market volatility. However, investment in small caps also provide opportunities to boost oneâs portfolio with the growth in the company business.
Here in this article, we are discussing 5 ASX-listed small-cap players.
Broken Hill Prospecting Limited (ASX: BPL)
Broken Hill Prospecting Limited (ASX: BPL) is in the business of exploration and development of strategic technology metals in the US and Australia.
In a BPL release dated 2nd December 2019, it was mentioned that Broken Hill Prospecting and Cobalt Blue Holdings (COB) have received the Expertâs determination in relation to their disputes with respect to the Thackaringa Joint Venture.
Owing to the determination:
- The joint venture interest of the parties remains at 70% COB and 30% for BPL.
- Broken Hill Prospecting Limited retains all rights related to base and precious metals with 100% legal title.
- In addition, BPL retains a 2% Net Smelter Royalty on all future production.
Notice of AGM and Change in Substantial Holdings
- The company recently announced that Hill Family Group Pty Ltd made a change to its substantial holdings in BPL on 14th November 2019. The current voting power of the substantial holder stands at 20.71% as compared to the previous voting power of 23.58%.
- In another update, the company announced plans to hold its 2019 Annual General Meeting on 18th December 2019.
The stock of BPL closed the dayâs trading at $0.027 per share on 3rd December 2019 with a market capitalisation of $4.48 million. The stock of BPL has delivered a negative return of 6.90% and a positive return of 42.11% during the last three months and six months, respectively.
Jindalee Resources Limited (ASX: JRL)
Jindalee Resources Limited (ASX: JRL) is a mineral explorer, with exposure (both direct and indirect) to lithium, gold, base and other strategic metals.
Change in Board
JRL through a release dated 21st November 2019 announced that Mr Pip Darvall unveiled intention to resign from the role of Managing Director of JRL, which would become effective around the end of the calendar year.
Meanwhile, the company highlighted that it remains well funded to move ahead with the advancing and development of the US-based lithium project (McDermitt) and Western Australia-based project (Widgiemooltha).
A Look at Q1 FY20
- In the September 2019 Quarter, the company continued its focus on the McDermitt US Lithium project (100% owned) with the planned drill program wrapped up and assay results continuing to be received.
- It added that the nine-hole diamond drill program has been completed at McDermitt and despite short term supply issues, the lithium fundamentals remain strong.
- The cash balance and marketable securities of the company stood at $3.2 million with no debt, as at 30th September 2019
The stock of JRL settled at $0.300 per share, down 3.226%, on 3rd December 2019. The market capitalisation of the company stands at $11.83 million, while the stock of JRL has delivered returns of -3.13% and -4.23% during the last three months and six months, respectively.
Invion Limited (ASX: IVX)
Invion Limited (ASX: IVX) is involved in the development of clinical-stage pharmaceutical drugs, with operations in Melbourne, Australia and Delaware, US.
Pre-Clinical Study Results
On 27 November 2019, the company updated the market with results from a pre-clinical study.
- The pre-clinical study performed by the Hudson Institute of Medical Research used the first batch of Australian-made PhotosoftTM compound on mice with ovarian cancer;
- The study highlighted that the PhotosoftTM Technology caused the immediate as well as specific death of tumour tissue with tumours shrinking to less than half their original size in three weeks;
- Tumour destruction was accompanied by an influx of immune cells, indicating an anti-tumour immune response;
- The study supports supports Hudson Instituteâs original laboratory findings that PhotosoftTM can rapidly kill cancer cells in vitro;
- The results suggest that the technology might be an effective method to achieve targeted tumour destruction;
- Over the next few months, the company plans to work with the technology to characterise the connection between tumour destruction and immune response, which would pave the way for clinical studies involving the use of the technology as a cancer therapy.
The stock of IVX closed the dayâs trading at $0.015 per share, representing an increase of 7.143% from its last close, on 3rd December 2019. The market capitalisation of the company stands at $77.01 million, while the stock of IVX has delivered returns of -12.50% and -6.67% during the last three months and six months, respectively.
K-TIG Limited (ASX: KTG)
KTG, headquartered in Australia and an industrials sector player, is engaged in the development and manufacturing of Keyhole TIG, a patented, high productivity welding technology.
New Licence Agreement
- Recently, the company announced to have signed an 8-year licence agreement with Singapore-based Steel-Ti Precision Welding Pte Ltd, under its WAAS (Welding-as-a-Service) business model;
- Steel-Ti would operate from a new purpose-built manufacturing facility, which is being constructed and expected to be completed in January 2020;
- Under the terms of the agreement, KTG would supply its technology and support services, in addition to extensive advice and support concerning materials handling, cutting and automation equipment that would facilitate exceptional quality, high-volume output from the facility;
- The agreement includes long term licencing fees, fees calculated by usage and utilisation, minimum monthly charges and an advance payment;
- The agreement represents the companyâs ability to deliver on its growth strategy as well as to secure long-term RR (recurring revenue) under its licencing model.
KTG delivered strong operational progress during the September 2019 quarter and is confident in its capability to continue to deliver growth across all its operations in the upcoming quarters. The priority of the company revolves around (1) Accelerating the WaaS revenue model and (2) Revenue growth via the conversion of identified pipeline opportunities.
The stock of KTG closed at $0.265 per share, down 10.169%, on 3rd December 2019, with a market capitalisation of $42.66 million.
Imagion Biosystems Limited (ASX: IBX)
Imagion Biosystems Limited (ASX: IBX) is into the research and development of medical diagnostics. The company is developing a new non-radioactive and safe diagnostic imaging technology. IBX recently announced that Kemper Shaw made a change to substantial holdings in the company on 26th November 2019. The current voting power of the substantial holder stands at 6.25% as compared to the previous voting power of 9.82%.
Order for Supply of Nanoparticles
- The company recently received an order totalling around $300K from Israeli biotechnology company NewPhase Ltd for the supply of its proprietary nanoparticles for 2020.
- IBX proprietary nanoparticles would be used in the NewPhase product.
- It was also mentioned in the release that the overall cancer therapy market is forecast to grow at a CAGR of 8.37% by 2024, while the target-therapy segment including toxin delivery vehicles is anticipated to register a higher CAGR of 9.68% in the forecast period.
The stock of IBX closed the dayâs trading at $0.018 per share, a decline of 10%, on 3rd December 2019. The market capitalisation of Imagion Biosystems Limited was noted at $10.18 million.
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With the pandemic continuing to affect the globe, healthcare companies are evaluating their lead compounds for COVID-19 treatment. Future revenue for these stocks depends on the probability of launching an approved treatment in the market.