The Australian share market may have drifted lower again on Tuesday but not all shares have dropped into the red.
Three small cap shares making notably strong gains today are listed below. Here's why they are on the rise:
The Avita Medical Ltd (ASX: AVH) share price rocketed 25% to 12.5 cents. Avita Medical's shares have been on fire since the regenerative medicine company announced that the U.S. Food and Drug Administration approved its Premarket Approval application to market the RECELL Autologous Cell Harvesting Device to treat severe thermal burns in patients 18 years and older. The company expects to launch the RECELL System in the U.S. in the fourth quarter of 2018. Management estimates that the product has an addressable market worth approximately US$200 million.
The Gazal Corporation Limited (ASX: GZL) share price has zoomed 10.5% higher to $4.65 after the retail company confirmed that it is in preliminary discussions with PVH Corp around the potential for a proposal to privatise Gazal. Management has warned that the discussions are at the very earliest stages, may not continue, and might not result in a proposal. Furthermore, if a proposal is made, there is no guarantee that it will result in a transaction.
The Medusa Mining Limited (ASX: MML) share price has surged 19% higher to 41 cents after the junior gold miner provided the market with its guidance for FY 2019. According to the release, management expects FY 2019 production to be within a range of 90,000 ounces and 100,000 ounces with its all-in sustaining costs in the range of US$1,050 an ounce to US$1,150 an ounce. While this is largely flat on FY 2018's 95,705 ounces of gold at an all-in sustaining cost of US$1,083 an ounce, I suspect investors had been expecting far worse this year. Prior to today Medusa Mining's shares were trading close to their 52-week low.
