What has been interesting over recent months, despite the massive rally for small caps, is that either towards the end of the month, or in periods where traders are “waiting” for something, profit taking can be seen. Ironically, this profit taking appears to be centred at the best performing stocks rather than players cutting the dead wood.
Critical Metals (CRTM) was a firm market, with shares of the investment company established to target opportunities in the mining sector rising 5%. Indeed, the company tweeted that it was looking to fulfil the potential of a technical analysis target of rather greater than the 20p the stock currently sits at.
Sentiment towards Critical Metals was boosted as another investment vehicle, Mustang (MUST) galloped into the stationary battery market. Its shares were temporarily suspended as it entered into a legally binding investment agreement with VRFB Holdings, its existing shareholders and Bushveld Minerals, ahead of MUST subscribing for a 22.10% interest in the issued share capital of VRFB.
While many small caps were somewhat off colour, in the wait for the latest news from the FOMC on Wednesday evening, shares of Mast Energy Developments (MAST) rose 4%. The rationale here was that the recent IPO must have been timed to coincide with imminent deal flow from the company which focuses on reserve power in the UK. Mast will be developing a portfolio of Reserve Power plants throughout the UK. Each plant will produce using clean natural gas that will then be fed into the grid. Mast floated on the market on April 14 at 12.5p, and this level has so far been the support zone for the shares after their initial peak near 17p.
It would appear that Bezant Resources (BZT) shares were finally in the box seat as far as investors were concerned, as the copper-gold specialist continued to bask in the sun of its significant copper intercept in its second drill hole at the Minemba prospect within the Kalengwa exploration. Given that we are now in the run up to provisional results in the form of lab assays in the second half of May 2021, there are a few weeks for the market to anticipate what Bezant may be sitting on, and what the magnitude may be. The shares closed up 30%, close to the type of rise that triggers a “speeding ticket” RNS, but as the company has just delivered its news the bulls should be home and dry.
Shares of Caerus Mineral Resources (CMRS) soared another 15% to 20p, making it a two day gain of over 25% in the wake of the company’s “Sunday Roast” investor presentation. CEO Martyn Churchouse fully delineated the opportunity the exploration and resource development company focused on developing mineral resources in Cyprus. Last week Caerus said exploration programmes to date have been very encouraging and should provide shareholders with the confidence that exploration funds are being well spent. In addition, the company said the potential of its Brownfield strategy was becoming evident, and it remains on track to start building out its resource inventory.
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