Monthly mining and energy wrap: recovery is in train

ASX small cap miners are slowly recovering from a 15 percent decline during the December 2018 quarter.

In the month of March small cap mining stocks are up 0.33 percent and 3.87 percent in the first quarter of 2019.

Of a total of 204 companies – 35 companies gained 50 percent or more during the month of March.

As is usually the case, the best performers hit the jackpot with discoveries or clearing legal and financial hurdles.

The winners

Spectrum Metals (ASX: SPX) was the top performer in March after announcing several gold discoveries at its Penny West site in Western Australia.

The area had been previously known to contain gold but Spectrum have had stunning success in its drilling program in just the last month.

On March 5 SPX announced the discovery of a high grade zone with 23.3g per tonne of gold. This was followed up with a 35.2g/t discovery on March 20 and 105.2g/t on March 29.

The second biggest gainer was Verdant Minerals (ASX: VRM) that rose not because of a discovery, but because a London-based private equity firm moved to acquire them at double the then current price and the stock rose accordingly.

The third, Brazilian gold and copper miner BBX Minerals (ASX: BBX) announced it received permitting approvals from local environment and heritage authorities for its mining license applications.

Four other stocks doubled in March: Ausmex (ASX: AMG); China Magnesium (ASX: CMC); Nucoal (ASX: NCR); and Tamaska Oil and Gas (ASX: TMK). Ausmex also announced high-grade gold discoveries but there was no company news out of the remaining stocks.

Nucoal’s gain may be attributed to the verdict of the Ian Macdonald case being overturned which had found their license had been granted corruptly. However, the verdict was overturned after the jury were misdirected as to the required state of mind required to find Macdonald guilty. The company noted they would ‘continue to follow the case with interest’.

Top 15 ASX small cap mining and energy stocks

Ticker	Name	Market Cap	Price (1-Apr)	Total Return March (%)	Total Return YTD (%)	Resource
SPX	SPECTRUM METALS LTD	$ 28,381,910.00	0.027	575	440	Gold
VRM	VERDANT MINERALS LTD	$ 33,112,844.00	0.03	114	100	Potash & Silica
BBX	BBX MINERALS LTD	$ 137,454,240.00	0.34	106	94	Gold
AMG	AUSMEX MINING GROUP LTD	$ 57,737,736.00	0.14	100	115	Diversified
CMC	CHINA MAGNESIUM CORP LTD	$ 18,497,542.00	0.04	100	43	Magnesium/Lithium
NCR	NUCOAL RESOURCES LTD	$ 21,521,148.00	0.028	100	211	Coal
TMK	TAMASKA OIL & GAS LTD	$ 3,920,000.00	0.002	100	0	Oil & Gas
NTU	NORTHERN MINERALS LTD	$ 127,969,752.00	0.079	98	41	Rare earths
AWV	ANOVA METALS LTD	$ 10,865,249.00	0.017	89	70	Gold
GBG	GINDALBIE METALS LTD	$ 38,990,564.00	0.026	86	53	Diversified
SRK	STRIKE RESOURCES LTD	$ 11,336,073.00	0.078	86	73	Diversified
WEL	WINCHESTER ENERGY LTD	$ 12,774,369.00	0.039	86	117	Oil & Gas
TIE	TIETTO MINERALS LTD	$ 43,555,780.00	0.19	81	192	Gold
BMT	BERKUT MINERALS LTD	$ 7,332,750.00	0.135	75	93	Cobalt
DHR	DARK HORSE RESOURCES LTD	$ 9,880,433.00	0.005	67	0	Gold/Lithium
HOR	HORSESHOE METALS LTD	$ 2,919,782.75	0.015	67	7	Copper/Gold
PKO	PEAKO LTD	$ 1,800,517.00	0.025	67	67	Diversified
LCK	LEIGH CREEK ENERGY LTD	$ 182,581,120.00	0.355	65	196	Oil and Gas
REY	REY RESOURCES LTD	$ 29,733,938.00	0.14	63	-44	Oil and Gas/Coal
FPL	FREMONT PETROLEUM CORP LTD	$ 20,688,400.00	0.013	63	160	Oil and Gas

Newcomers

2019 continues to be a quiet year for mining IPOs with just one new mining stock joining the ASX in March 2019.

Copper and gold miner, Canterbury Resources (ASX: CBY), debuted on March 7 – listing at 30 cents. It has since dropped by 8.3 percent and is sitting at 28 cents (at the time of writing).

April is shaping up to be a similarly quiet month, but there may be several IPOs in the months thereafter. Mont Royal Resources and Gold Tiger Resources are intending to list in May and there are several others in the queue without a firm date.