Junior Players ended in Green- Why Were Lepidico, Bassari, Atomos Investor Picks Today?

Junior companies have often demonstrated an interesting zeal to grow. Their high leverage to success albeit with high risk has always caught investors’ attention. Given the fact that these companies put together an idea, a skill and a considerable amount of money to grow in a specific field, encourages investors to consider them as an excellent way to build a nest egg in their investing portfolios.

In this article, we have cherry-picked three junior stocks that built on investors’ sentiment positively after the trading session on 25 February 2020. They settled in green, relatively above their previous corresponding closing prices, as depicted in the table below-

Lepidico Ltd (ASX:LPD)- Significant Results of First Phase 1 Project Production Schedule for Karibib

Focused on exploration, development and production of lithium chemicals, LPD owns the technology to a metallurgical process (L-Max® Process) that has effectively produced lithium carbonate from non-conventional sources (lithium-rich mica minerals including lepidolite and zinnwaldite).

The Company is currently working on the Karibib Project in Namibia where it carried out pit optimisations recently. These were incorporated in the recently announced JORC Code (2012)-compliant Mineral Resource estimate.

On 25 February 2020, LPD notified that by-product tonnages of lithium and amorphous silica at the Project significantly exceed those estimated for the 2017 Pre-Feasibility Study. Moreover, these by-product tonnages are inclusive of estimates for caesium and rubidium chemicals, for the first time.

The Updated Karibib Project Mineral Resource estimate enables the first production schedule to be generated. This is likely to maximise revenue from all product streams. LPD notified that-

• Project nameplate capacity is 5,600 tonnes per annum (tpa) of lithium hydroxide monohydrate
• The SOP production significantly exceeds PFS estimates to average over 11,000 tpa over the project life
• Amorphous silica average annual production to exceed 30,000 tonnes
• Rubidium sulphate production (estimated for the first time) is likely to average 1,400 tpa
• Caesium formate brine output averages 210 tpa
• The Phase 1 chemical plant engineering remains on track for completion in May 2020
• Mine design work for the two relatively shallow open pits at Rubicon and Helikon 1 is on track to be completed in April 2020
• The key findings from the Feasibility Study are scheduled for May 2020

Bassari Resources (ASX:BSR)- Grants New Contract for Makabingui Gold Project

Focused on discovering and developing multi-million ounce gold deposits in the Birimian Gold Belt of Senegal, West Africa, BSR was a hot stock on the ASX on 25 February 2020.

The Company appointed Junction Contract Mining SARL (JCM) as the contract miners for its Makabingui Gold Project. Headquartered in Perth, JCM is a mining services provider with a vast, successful experience and record within West Africa.

The Makabingui project covers a 128 square kilometre area in the south-eastern part of Senegal and consists of gold in four high grade pits within the permit area.

Necessary mining equipment, including loaders, drilling rigs, grader etc. has been already supplied (sourced from Europe) and will enable exploration to commence in the near future. As an icing on the cake, JCM’s appointment is bound to offer significant capital savings to the Project.

JCM’s work would be extensive and would circle around planning and management of the mining work, maintenance of mining plant and equipment, drilling and blasting ore and waste material, constructing and maintaining all on-site access and haul roads, providing the provision of management, safety, environmental and quality assurance plans, to name a few.

Atomos Limited (ASX:AMS)- Delivers Strong Growth in 1H20, Sales Exceed Expectations

A global video technology company, AMS delivers simple to use monitor-recorder content creation products, which have been well accoladed. With the growing momentum of the social, pro-video and entertainment markets across the world, the need for a faster, higher quality and more affordable production system is a must for content creators, an offering AMS delivers through its strategic relationships with key technology providers- be it Apple, Adobe, Sony or Canon, to name a few.

On 25 February 2020, the Company made its presence felt amid the ongoing reporting season of ASX-listed companies, that has garnered attention of media houses, domestic and international investors to the Aussie land.

Before acquainting with AMS’ robust 1H20 results, we encourage our readers to browse through our exclusive REPORTING CALENDAR- an ultimate guide to companies you should not miss this reporting season.

Back to AMS, the tech-savvy company continued to build on its track record of strong revenue growth for the half-year ending 31 December 2019 (1H20)-

• Revenue was up by 35 per cent to $32.6 million compared to the prior corresponding period (pcp)
• Gross profit was up by 32 per cent to $13.9 million relative to pcp
• AMS’ Pro Forma EBITDA grew by 35 per cent to $1 million
• Sales from the existing product range performed strongly ahead of the Company’s expectations
• The demand for Ninja V remained very strong at the back of major Global camera companies opting to implement RAW over HDMI capability or higher quality video to Atomos in their product lines
• The Company also completed the acquisition of UK-based Timecode Systems, that has developed unique and patented technology enabling multiple audio and video capture devices
• On the corporate end, AMS raised $30 million (before costs) through a couple of institutional placements to support capex, working capital and the TCS acquisition.

Interestingly, AMS is one of the companies that has witnessed minimal impact on the core selling product range due to the recent outbreak of the coronavirus, because it invested in sufficient stock levels prior to the Chinese New Year to meet forecast demand.

Considering no ongoing adverse market conditions from the Chinese pandemic, AMS expects to maintain strong revenue growth in FY20, relative to FY19.

With these junior companies making a significant mark in their respective sectors and gaining the attention of investors, it is safe to conclude that the era of junior players is here to stay.

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