This undiscovered resources stock is up 275% since its April IPO

Many Australian investors love to take a punt in the resources space, after all China’s blockbuster demand for resources has kept the “Lucky Country” recession free for 27 years and has probably helped create a significant proportion of the reportedly 1.16 millionaires in Australia along the way.

However, most of that wealth has probably come from investing in or working on the blue-chip end of the resources market in big players like Fortescue Metals Group Limited (ASX: FMG), BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

However, there’s also been a couple of huge winners to come out the speculative space with Fortescue the most well known, while lithium miners like Galaxy Resources Ltd (ASX: GXY) and Orocobre Limited (ASX: ORE) also had their day in the sun recently.

One small-cap miner that has climbed around 275% from 20 cents to 75 cents since its April 2018 initial public offering is UK-headquartered Adriatic Metals PLC (ASX: ADT).

It owns a “zinc-strong” polymetallic product deposit in Rupice, Bosnia, and recently raised $10.8 million from institutional investors at 55 cents per share to provide a cash balance of $17.3 million for investment into the zinc mining project.

It has around 150.5 million shares on issue to give it a market value around $113 million, although for the quarter ending September 31 2018 it had no revenue and an operating cash loss of GBP803,000.

Its zinc mining tenements also appear to be at an early development stage, which suggests it will have to consume a lot of capital before it gets to a potential production and commercialisation stage.

As you can probably guess I’m not a buyer of Adriatic Metals shares, but given the rocketing share price it seems some speculators believe in its potential.

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked...

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2019."

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free report.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!