Share Talk Weekly Small Cap Movers & Shakers, Saturday 11th February 2023

The fortunes of the AIM 100 and FTSE 100 indices have been very different so far in 2023.

London’s blue-chip index, which includes oil giants like BP and Shell set a new closing high last week. It reached an intra-day maximum of 7,943 points Thursday.

The AIM 100 roll-call of growth companies closed on Thursday at 4,236 points, a slight improvement over its April 2006 record of 6,427.

It is easy to see why: Most Footsie companies are multinational and thus are protected from inflationary rockets and fiscal policies that can be unpredictable. AIM stocks suffer the same fate, as they are riskier than their more well-known peers.

The contrast in fortunes between the benchmarks was evident with the AIM All share falling 2.3 % to 4,197 points while the FTSE 100 held steady at 7,877.

Despite this, AIM-listed companies have not been all bad news, with Trident Royalties and CleanTech Lithium, both mining-focused, reaching new highs.

Trident Royalties shares rose 7% in the past week and traded at 59p. This is slightly less than the closing price of 59.40p on 9 February.

Investors were informed Wednesday by the mining royalty company that it received a favourable ruling from the District Court of Nevada. This confirmed that the permitting process for Lithium Americas Corp’s (TSX, NYSE: LAC), Thacker Pass project was done “thoroughly” and “responsibly.”

CleanTech Lithium peaked Friday at 77p. It was also well bid. The year-to-date performance of the Chilean-focused exploration company has seen a 95% increase.

These gains are indicative of the high demand for lithium which is at forefront of the electric vehicle revolution. However, tight supply was hindered by Covid restrictions in China. Prices peaked in November at just under US$85 per kilogram.

Genedrive was another one of AIM’s top movers. Shares rose 26% to 31.4p following a National Institute for Health and Care Excellence recommendation for Genedrive’s MT-RNR1 identification kit.

This kit can identify babies who have a primary genetic variant and may be at high risk for hearing loss.

Following a promising update to its Prostate Screening EpiSwitch Blood Test, Oxford Biodynamics’ stock shot up 21% to 19.15p.

Cancers, a peer-reviewed journal, reported a 94% accuracy in a piece that highlighted the results from a multi-institutional clinical trial.

TekCapital rose 3% to 20p following a deal with a distributor in the US. MicroSalt, soon to be spun off from Tek, has signed an agreement with US Salt that will allow the distribution and delivery of its low-sodium solutions.

EFK Diagnostics fell 12% to 29p after a trading update that included a significant board reshuffle.

Net cash at £11.4mln was 42% lower than the previous year. Chief executive Mike Salter has resigned with immediate effect.

In response to the company’s most recent trading update, ITIM Group PLC saw its software group sink 23% to 35.9p. The company stated it would “pivot away” from the 2021 IPO prospectus strategy to increase margins and cash generation. However, no additional details were provided.

Sanderson Design Group fell 6% to 125p after the textile maker reported a decrease in brand product sales and third-party manufacturing revenues following Russia’s exit.

Panther Metals stated that Fulcrum Metals had announced a successful pricing strategy and conditional placing.

17.142,857 shares were purchased at 17.5p each, generating gross proceeds of approximately PS3mln.

Fulcrum shares will be admitted to the AIM market on February 14, according to expectations.

According to a statement, the net proceeds from the placing will be used “capitalise upon the potential” Fulcrum’s portfolio in Canada.

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