Cadence (KDNC) & Amur (AMC): Should you buy these mining penny stocks?

Highlights

  • Cadence Minerals’ profit before taxation was £2.84 million in the H1 period ended 30 June 2021 compared to a loss of £1.40 million for six months ended 30 June 2020.
  • In August 2021, Amur Minerals filed the Permanent Conditions Report at the Russian Government Commission office for its Kun-Manie nickel-copper sulphide project.

Mining penny stocks have been among the most sought-after stocks on the London Stock Exchange this year. The impact of the pandemic is still fresh in the minds of investors, and therefore, investors are looking for safe-haven investment options compared to traditional stocks. Although the small-cap mining stocks are not entirely risk-free, the risk associated with these stocks is much lower than many other industries.

Against the backdrop of the pandemic and the relative uncertainty associated with its impact on various sectors, mining penny stocks serve as an interesting investment opportunity for investors. With that in mind, here is a detailed review of the investment prospect in two small-cap mining stocks - Cadence Minerals Plc and Amur Minerals Corporation. 

Cadence Minerals (KDNC) & Amur (AMC): Year-to-date (YTD) return and market cap

(Data source: Refinitiv)

Cadence Minerals Plc (LON: KDNC)

Cadence is an investment firm engaged in the discovery and development of mineral resources. Recently, the company received credit approvals for the Brazil-based Amapa iron-ore project. Cadence announced that Castillo Copper (LON: CCZ) entered into a 90-day option agreement with Lithium Technologies and Lithium Supplies, in which Cadence owns a 29% stake, to take over the Picasso and Litchfield Lithium Projects in Western Australia and Northern Territory, respectively.

Cadence Minerals’ shares are trading at GBX 21.75, down by 1.14% in the early hours of trade at 8:14 AM BST on Tuesday 19 October 2021. The market cap of the company currently stands at £32.70 million. The shares of Cadence Minerals gave a year-to-date (YTD) return of 40.94% to shareholders.

During the H1 period ended 30 June 2021, Cadence Minerals’ profit before taxation was £2.84 million compared to a loss of £1.40 million for six months ended 30 June 2020 and a profit of £7.82 million for the year ended 31 December 2020.

Amur Minerals Corporation (LON: AMC)

Amur Minerals Corporation is a company engaged in nickel-copper sulphide mineral exploration. Its main asset is the Kun-Manie nickel-copper sulphide project based out of Russia Far East.

Amur Minerals’ shares are trading at GBX 2.04, down by 2.16% at 8:36 AM BST on Tuesday 19 October 2021. The market cap of the company currently stands at £28.77 million. The shares of Amur Minerals Corporation gave a year-to-date (YTD) return of 30.21% to shareholders.

In August 2021, Amur Minerals filed the Permanent Conditions Report at the Russian Government Commission office for its Kun-Manie nickel-copper sulphide project. The report was completed and certified Oreall LLC. Subsequent to the registration of the natural reserves, the results will be used for establishing a Russia approved mine plan for Kun-Manie.

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