Top 3 ASX Small Caps Stocks To Look For In November 2021
The ASX 200 finished Thursday’s session 7.90 points or 0.11% higher at $7,407.30, reflecting a mixed session on Wall Street overnight as investors minutes from the U.S. Federal Reserve policymakers flagged a potential increase in the target range for the federal funds rate sooner than currently anticipated.
Among stocks, heavyweight miners boosted the main index on the back of stronger iron ore prices. Rio Tinto (ASX: RIO) was up 1.64%, BHP (ASX: BHP) gained 0.99% and Fortescue Metals (ASX: FMG) lifted 1.76%.
Our List of 2 Best Performing ASX Penny Stocks to Buy in November 2021
Core Lithium (ASX: CXO)
Core Lithium is a lithium exploration company. The company is engaged in the exploration of lithium, copper deposits in the Northern Territory and South Australia. CXO projects include Finniss Lithium Project, and copper, zinc, and lead projects.
The key takeaway is that the lithium sector is booming as Tesla hits a US$1 trillion valuation recently.
It’s another bumper day so far for ASX lithium shares. Coined as Australia’s next lithium producer, Core Lithium is up 2.75% to 56 cents, not far off the recent all-time high of 66 cents. Last month, Core announced that construction has kicked off for its flagship Finniss lithium project. The company said its Finniss project is the only new Australian company forecast to initiate lithium production in 2022.
Core Lithium has entered the construction phase of its new lithium mine following its final investment decision on 30 September. The company informed that road access works, site establishment, and construction of communications, and supply infrastructure are now underway.
In addition, early works at Finniss’ Grants open-pit mine have begun in preparation for the start of mining activity later this year. The construction of a dense media separation processing plant will follow in March 2022.
The construction of a 1 million tonnes per annum dense media separation processing plant will enable it to produce high-quality concentrate over its mine life. Furthermore, the project has gained all Northern Territory government and environmental approvals and is fully funded. This follows the successful raising of $150 million from institutional investors and shareholders.
Additionally, Core Lithium has secured approximately 80% of Finniss’ initial output under 4-year offtake agreements with China’s Ganfeng and Yahua.
Carbon Revolution (ASX: CBR)
Carbon Revolution is a company engaged in the manufacture and sale of carbon fibre wheels and research and development projects related to carbon fibre wheel technology. Geographically, the group has a business presence in Australia and internationally, of which key revenue is derived from the international countries. CBR offers products to the global automotive industry.
The Carbon Revolution share price is climbing again today after the company reported last month a 28% quarter-on-quarter decrease in revenue. Q1 FY22 revenue came in at $6.2 million. Revenue from Carbon Revolution’s wheel sales was $5.9 million with $300,000 of revenue from engineering services and tooling.
The company’s revenue was in line with its expectation for the full 2022 financial year, adding that the planned inventory build-ahead is currently on track to support the expected second-half weighting of FY22 sales.
According to the update, the 35% drop in the number of wheels sold in the past quarter was largely due to semi-conductor chip shortages that have been hampering the global automotive industry.
CBR has a cash balance of $63.9 million as of 30 September and a net cash outflow of $23.4 million in the first quarter was in-line with its expectations.
Looking ahead, Carbon Revolution is facing ongoing uncertainty about COVID-19’s impact on the global car industry and semi-conductor chip shortages and therefore will not provide sales guidance for FY22.
MLG OZ Ltd (ASX: MLG)
MLG Oz operates within the Australian mining industry. The company offers comprehensive supply chain solutions such as crushing and screening, quarry products and bulk transport services.
The MLG Oz share price has made a very successful IPO debut in May this year. The stock rising 36% in early trading. However, the upside momentum did not last long until the shares drop by more than 35% to 89 cents apiece.
MLG works with other ASX businesses like BHP (ASX: BHP), Northern Star Resources (ASX: NST) and Fortescue Metals (ASX: FMG).
MLG has forecast revenues of $241 million for the period. EBITDA forecast comes in at $41 million. Around 82% of the company’s revenues come from the gold mining sector, with another 14% from iron ore industries and the rest from various other base metals.
MLG has also received interest from some high-profile investors. Chris Ellison, of Mineral Resources (ASX: MIN), has reportedly secured a 0.69% stake in the company. Bill Beament of Northern Star also has a position as well.
MLG share price dropped by more than 35% after its IPO from its all-time at $1.4. We believe MLG has found a solid floor around the 80 – 90 cents price range. We could expect from here to see an imminent rebound and a return to bullish momentum.