Small-Cap Stocks - A Look at ANW, FAR, MLS, OAR 

Summary

  • Adding small-cap stocks enhances one’s investment portfolio. Though riskier and volatile compared to established players, these stocks have more chances to grow further.
  • Ten Mining has failed to finalise the Granville Tin Mine transaction, consequently Aus Tin Mining planned to pursue further options for divestment.
  • FAR Limited's joint venture partner Cairn Energy has proposed the sale of 40 per cent interest in the RSSD contract area.
  • Metals Australia has identified multiple gold, copper and base metal targets post data evaluation at the Eade Gold Project.
  • OAR released quarterly report, highlighting project updates and raising AUD 1.4 million with shortfall placement closing oversubscribed.

Australian stock market is volatile at the moment, with so much uncertainty due to the prolonged virus crisis. If we look at the last one-month data, the benchmark index shows a fluctuating trend. On 30 July 2020, the benchmark index S&P/ASX 200 settled in the green zone, closing the day’s trade at 6,051.1, up by 0.74 per cent.

Small-cap stock investments are riskier; at the same time, they offer excellent potential to make wealth. Australian stock exchange has a number of small businesses from Australia as well as other nations.

Do Read: 3 Small caps nearing 52-week high- GRR, PAI, WQG

Let us look at a few of small-cap stocks, covering their market updates.

Ten Mining Failed to Close Granville Mine Transaction, ANW to Pursue Additional Options

Aus Tin Mining Limited (ASX: ANW) intends to become a prominent tin producer in Australia and owns the world-class Taronga Tin Project near Emmaville, New South Wales.

In early June 2020, the Company updated that Aus Tin Mining had agreed to a 30?day extension for the signed Heads of Agreement on the request of Ten Mining Pty Ltd. The deal was for the effective disposal of the Granville Tin Mine on the west coast of Tasmania.

As per the agreement, Ten Mining was to acquire all shares in Ten Star Mining Pty Ltd, which is a 100 per cent subsidiary of ANW owning the mine. For the transaction, Ten Mining was to pay AUD 365,000 and an additional AUD 635,000 to ANW for existing environmental bonding commitments. The agreement also had a term that prohibited Aus Tin Mining from seeking a competing proposal.

However, in the latest update on the agreement on 3 July 2020, Aus Tin Mining announced that Ten Mining has failed to close the transaction as scheduled. As a result, Aus Tin Mining will seek additional options for divestment.

On 30 July 2020, ANW closed the day’s trade at AUD 0.001 with a market cap of AUD 2.89 million.

FAR's JV Partner Proposed Sale of 40 Per Cent Interest

FAR Limited (ASX:FAR) is an independent ASX-listed oil & gas exploration and development company, focussed on African markets.

On 28 July 2020, FAR updated the market that Cairn Energy PLC has announced a proposed sale of its entire 40 per cent interest. Cairn Energy is FAR's joint venture partner in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) Contract Area. FAR holds a 15 per cent working interest in RSSD.

On 30 July 2020, FAR settled at AUD 0.014, down by 6.667 per cent from its previous close, with a market cap of AUD 149.68 million.

Good Read: A Pursuit of Alpha- How to Identify Value in ASX-Listed Oil & Gas Stocks?

Multiple Targets Identified at Metals Australia’s Eade Gold Project

Exploration company, Metals Australia Ltd (ASX: MLS) has announced to have identified multiple gold, copper and base metal targets, post detailed evaluation of all available historical geological and geophysical data at its wholly owned Eade Gold Project in Quebec.

Exploration activity was historically undertaken by Quebec Geological Survey, Virginia Gold Mines and Goldcorp.

MLS is preparing to mobilise a technical team to the field to focus on the numerous high priority targets. The Eade Gold Project sits within the southern branch of an east-west trending greenstone belt, which hosts several high-grade Au-Cu and base metal discoveries.

On 30 July 2020, MLS traded flat at AUD 0.002 with a market cap of AUD 6.41 million.

Good Read: Gold Hits life highs: Eight ASX-listed Gold Stocks Under Sentiment Splash

Oakdale Resources Released Report for June Quarter

Oakdale Resources Limited (ASX:OAR) is a precious metals explorer and an aspiring producer. On 27 May 2020, OAR announced to have conducted a site visit to Crown PGE-Nickel-Copper Project after announcing the Binding Acquisition Agreement to acquire 100 per cent of Australian Precious Minerals Pty Ltd (APM).

APM is the holder of Crown PGE-Nickel-Copper Project, which covers a series of prominent magnetic structures similar to Chalice Gold Mine's Julimar Complex.

On 30 July 2020, Oakdale Resources released its quarterly activities report for the period ended 30 June 2020, highlighting -

  • In Australia, negotiations are ongoing with landowners to access property around Crown PGE-Nickel-Copper Project for mapping and rock chip sampling, followed by geochemical soil sampling.
  • OAR has lodged the Exploration Permit application for drilling with the Nevada Bureau of Land Management (BLM).
  • The Peruvian officials extended the nationwide state of emergency until 31 July, consequently the Oakdale Peru office is closed, and staff is continuing work from home.
  • Entitlement offer completed raising AUD 1.4 million with shortfall placement closing oversubscribed. The capital raised allows OAR to plan initial exploration for the Crown PGE-Nickel-Copper project, Nevada gold drilling and Peru Chimu gold project.

On 30 July 2020, OAR settled at AUD 0.004, moving upward by 33.33 per cent from the previous close, with a market cap of AUD 4.21 million.

Do Read: Dividend and Growth Story of Few Small-cap Stocks.

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