London’s AIM Index resumed its downward trajectory today and whilst overall losses were limited, the junior board finished up just over four points lower at 1248.36.
- Bion up 31%
- Augean up 24%
- Mycelx -21%
- Uru Metals -15%
- Kodal Minerals up 15%
Bion [LON:BION] was the day’s biggest riser, adding 31% by the bell. There’s no firm news behind this, although the company does have limited free float of stock, was priced on a double digit spread and trade was also looking rather lumpy during the session. The stock missed out on the green energy bubble at the end of last year, but subsequently didn’t battle against a reversion. Can these gains be consolidated?
Augean [LON:AUG] also fared well, adding 24% off the back of news that Morgan Stanley Infrastructure Inc was considering making a bid for the company. No formal approach has been made but this has started the clock ticking for the suitor to make a call over its intentions no later than June 24th.
Mycelx [LON:MYX] was at the foot of the board by 4.30pm, down 21% with the stock extending those losses which started off the back of yesterday’s results. The company is well positioned to take advantage of the growing environmental concerns, but last year’s sharp fall in revenues seems to have left investors underwhelmed. This is however a minnow of a company and was showing a 20% spread at the close – the downside needs to be put into context.
Uru Metals [LON:URU] also struggled today, reaching the bell some 15% lower. An amendment to a convertible loan note announced after last night’s close appears to be weighing on the valuation here, with those impressive but unexplained gains posted earlier in the month now having been almost reversed in full.
A notable mention for Kodal Minerals [LON:KOD] who have been on our radar of late. The stock tacked on 15% today with bargain hunters taking a punt that the political situation in Mali will calm and the lithium project can continue unabated.