In morning trade the S&P/ASX Small Ordinaries (Index: ^AXSO) (ASX: XSO) has bounced back from yesterday’s decline and is up 0.1%.
Three small caps that have stood out with solid gains today are listed below. Here’s why they are on the rise:
The Bass Metals Limited (ASX: BSM) share price is up 7% to 3 cents after the gold and base metal producer and explorer announced the successful commercial ramp up of production at its Graphmada graphite mine in eastern Madagascar. According to the release, production of premium graphite concentrates has now been successfully achieved, with large flake graphite concentrates produced consistently above 94% fixed carbon with recoveries above 75%. Management confirmed that this means it is on track to reach name plate production of 500 tonnes of premium large flake graphite concentrate per month.
The Noni B Limited (ASX: NBL) share price has jumped almost 15% to $2.70 after returning to trade following its trading halt. Investors have responded positively to the retailer’s plan to acquire the assets and businesses of Millers, Katies, Crossroads, Autograph and Rivers from Specialty Fashion Group Ltd (ASX: SFH) for a total consideration (on a cash free, debt free basis) of $31 million in cash. Although the businesses are making a loss currently, Noni B’s management expects to turn things around successfully. I think this is a great deal for the retailer and makes it an even more attractive investment option.
The REVA Medical Inc (ASX: RVA) share price has climbed over 3.5% to 28 cents after the medical device company announced that its Fantom bioresorbable scaffold product has launched in Turkey. According to the release, implants have been conducted during the first week of introduction at three separate hospitals in the country. I’m a big fan of the product, but I’m unsure at this stage whether the company will be able to generate revenues that justify its market capitalisation of over $110 million.