The Australian share market has started the week on a disappointing note and is notably lower in early afternoon trade.
Not all shares have been dragged lower with the market, though. The three small cap shares listed below have started the week with strong gains. Here's why:
The AVZ Minerals Ltd (ASX: AVZ) share price has raced 5% higher to 8.2 cents despite there being no news out of the lithium-focused mineral exploration company. Last week the company's shares surged higher momentarily following a positive update on its scoping study. That update revealed that it has made positive revisions to its scoping study that means estimates for its free on board (FOB) cash costs have been reduced to US$297 per tonne. This was 16% lower than its initial estimate. I suspect the market is sceptical that this will prove to be an accurate estimate.
The Telix Pharmaceuticals Ltd (ASX: TLX) share price has climbed 3.5% to 73 cents after the biopharmaceutical company announced the acquisition of Advanced Nuclear Medicine Ingredients (ANMI). According to the release, the company has acquired the Belgium-based pharmaceutical company for €3.15 million in Telix shares priced at a premium of $0.83 per share and $2 million in cash. Management believes the transaction will provide the company with exposure to the rapidly growing demand for prostate imaging services outside the United States. I think this looks like a great move from management and could be a big boost to its revenues over the coming years.
The Yojee Ltd (ASX: YOJ) share price has pushed 4.5% higher to 7.2 cents after the logistics software provider released a trading update. According to the release, Yojee has had a positive month with six new SME customer additions and a major upgraded agreement achieved so far in November. In addition to this, it advised that Sinotrans Integrated Logistics Australia has now deployed the company's partner model across partners in four states of Australia and this growth is expected to continue over the coming months. While this sounds promising, the release was light on financials. I would suggest investors wait to see what impact this has had on its cash receipts at its next quarterly update.
