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These small cap ASX shares are on the rise on Monday

The Australian share market has had a mixed start to the week with declines being seen across most sectors.

Three shares at the small end of the market that have not let that hold them back are listed below. Here’s why they are on the rise on Monday:

The Australian Mines Limited (ASX: AUZ) share price has continued its strong run and is up a further 10.5% to 5.2 cents. Investors have been fighting to get hold of the cobalt, nickel, and scandium miner’s shares since the release of an announcement at the end of last week. That announcement revealed that the company has formed its second major scandium research partnership. According to the release, Australian Mines will collaborate with leading academic researchers at the Amrita Centre for Research and Development in India. The two parties will be focusing on the use of scandium in the next generation metal hydride batteries and hydrogen storage applications.

The Bubs Australia Ltd (ASX: BUB) share price is up almost 4% to 53 cents. The goats milk infant formula company’s shares have performed reasonably well since the release of its quarterly update last week. That update revealed record quarterly sales of approximately $9 million, which was a 416% year-on-year increase. However, a good portion of this growth was from sales of CapriLac, which was acquired in the second quarter of FY 2018 and therefore did not feature in the prior corresponding period. Sales of Bubs infant formula products grew 90% on the prior period, albeit from a low base.

The Lucapa Diamond Co Ltd (ASX: LOM) share price has pushed 4.5% higher to 23 cents. This morning the diamonds company announced the discovery of a new alluvial source of large and premium-value diamonds at the Lulo diamond project in Angola. The company has been exploring the extensive flood plains along the ~50km stretch of Cacuilo River valley within the Lulo diamond concession in order to determine whether these areas also host exceptional alluvial diamonds. The early results have been positive with 17 regular Specials being recovered. The term Specials indicate diamonds greater than 10.8 carats. Management believes the results demonstrate the potential to open additional and expansive new mining areas at Lulo.

But iInstead of Lucapa, I would suggest investors check out this diamond in the rough.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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