- The ASX Small Ordinaries index was up 0.2% to 3,396.9 by 12:30 PM AEST today.
- OZM surged over 145% in today’s session as the company discovered new gold mineralisation at its Mulgabbie North Gold Project.
- Investors should not invest in penny stocks without acquiring the pertinent skillset and thorough knowledge.
The Australian market continued its uptrend on Thursday, however it is witnessing some selling pressure, like yesterday. The benchmark ASX 200 index was trading 0.05% or 4 points up at 7,574.4 by 12:30 PM AEST on 21 April 2022.
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The same story continues with small caps, which have been trading positive for the day but have retraced a bit from the day’s high. The ASX Small Ordinaries index was up 0.2% to 3,396.9 by 12:30 PM AEST today. However, some ASX penny stocks are in their own league and delivering significant gains today. Let us have a look at three such stocks.
- Ozaurum Resources Limited (ASX:OZM)
Ozaurum Resources is an ASX-listed mineral exploration company, having a market capitalisation of AU$12.02 million. The company is a 100% owner of two high-prospect gold projects - Mulgabbie North and Patricia Deposit in Western Australia.
Today OZM shares racked up a mind-boggling gain of 145% to trade at AU$0.24 by 12:30 PM AEST. The spike in share price came after the company found a new gold discovery at the Mulgabbie North Demag Zone, validating the significant potential of the Mulgabbie North Gold Project. The volume of 12.7 million shares for the day so far was the highest ever recorded since OZM shares marked their debut on the ASX in February last year.
- Woomera Mining Limited (ASX:WML)
Woomera Mining is an Adelaide-based exploration company with an extensive minerals tenement portfolio and has a market capitalisation of AU$17.1 million. Today, WML shares rallied to a 52-week high, gaining 28% to AU$0.032, clocking a volume of over 20 million hares so far.
Although, there is no clarity yet as to why there has been a sudden spurt in the trading activity of WML shares, but the ASX has temporarily paused the trading of WML shares indefinitely till further announcement.
- Zinc of Ireland NL (ASX:ZMI)
The last name on our list is Zinc of Ireland, which is primarily a zinc and gold exploration company headquartered in Western Australia. The company has a market capitalisation of AU$8.5 million and it has been reeling under losses for several years.
Today, investors flocked to buy ZMI shares, leading to a rally of 20% to the last traded price of AU$0.06 by 12:30 PM AEST. It is a low volume stock and today’s surge is probably due to poor liquidity.
Penny stocks are generally highly volatile and have less liquidity which makes them relatively difficult to trade or invest in. Therefore, investors should not jump the gun and invest in penny stocks without acquiring the pertinent skillset and thorough knowledge.