Two Best ASX Small Cap Stocks to Buy in November

Team Veye | 05-Nov-2024

Alkane Resources Ltd (ASX: ALK)

Alkane Resources Ltd posted a strong performance in the quarter ending 14 October 2024, achieving production targets at the Tomingley Gold Operations (TGO) and benefiting from high gold prices. TGO produced 18,418 ounces of gold, aligning with forecasts, and recorded site operating cash costs of A$1,840/oz and an all-in sustaining cost (AISC) of A$2,182/oz. Quarterly site cash flow reached A$19.2 million, reflecting solid operational efficiency. Gold sales for the period totalled 18,208 ounces, generating A$62.3 million in revenue at an average realized price of A$3,422/oz. Alkane reaffirmed its FY2025 production guidance for Tomingley at 70,000 to 80,000 ounces with an AISC range of A$2,400 to A$2,600/oz. This AISC estimate includes a one-time cost related to decline development, considered sustaining capital. Notably, initial grade reconciliations from the Roswell deposit showed a 14% positive variance from forecasts, which could enhance future production economics.

The company’s liquidity remains sound, with cash, bullion, and listed investments totalling A$52 million, further supported by A$15 million in undrawn project financing. This financial position highlights Alkane’s disciplined capital management during Tomingley’s ongoing expansion phase. Approximately A$14.2 million was invested in expansion projects during the quarter, including the Paste Plant and Process Plant upgrades, both expected to be operational by the December 2024 quarter. The company anticipates a cash-neutral position as this capital-intensive phase nears completion. Operational highlights include the commissioning of four CAT 2900XE loaders under the CAT Command system, demonstrating Alkane’s focus on operational enhancements. Roswell remains the primary ore source, with favorable grade reconciliations supporting its role in meeting production targets.

Looking ahead, Alkane is among the best small caps ASX as it is progressing with its five-year plan, targeting over 100,000 ounces of annual gold production by FY2027 with the introduction of open-cut mining at San Antonio. With reserves extending beyond the current plan and potential for further resource growth, the outlook for Tomingley is promising. Alkane’s strategic focus on completing expansion projects, streamlining operations, and maintaining financial discipline positions the company well to capitalize on strong gold prices and deliver long-term shareholder value.

PYC Therapeutics Limited (ASX: PYC)

PYC Therapeutics Limited is developing VP-001 to treat RP11, a rare genetic eye disease causing blindness. Two phase 1/2 studies, which are conducted as open-label extension and as part of the single ascending dose (SAD), as well as the multiple ascending dose (MAD) studies, are all conducted to advance VP-001 towards treatment. Patients in both studies have shown promising results, with disease progression halted and improved vision. The Safety Review Committee has approved escalating the dose to the final cohort (75 mcg) in the MAD study, and this cohort will be enrolled soon. Data from the final group of RP11 patients, expected in early 2025, will help PYC plan a key trial for FDA approval of VP-001. 

PYC has also advanced its drug candidate, PYC-001, for Autosomal Dominant Optic Atrophy (ADOA), a blinding condition affecting 1 in 35,000 people, into human trials. The company has started a Single Ascending Dose (SAD) study to evaluate safety and efficacy. The first patient has received their initial dose of PYC-001, and two more will follow in the same cohort. This study, expected to run for about 18 months, will provide initial safety and efficacy data in 2025 and inform the design of future trials, including a Multiple Ascending Dose (MAD) study and a registrational trial set for 2026, aiming for NDA approval by 2028. 

PYC, one of the top small cap stocks asx, is focused on creating precision therapies for genetic diseases with no current treatments. In addition to the programs for RP11 and ADOA, the company is making advancement on treatments for Autosomal Dominant Polycystic Kidney Disease and Phelan McDermid Syndrome. For Phelan McDermid Syndrome, which is a severe neurodevelopmental disorder, PYC is expected to initiate IND-enabling studies in 2025, and after that, clinical trials will begin. 

PYC’s drug candidates, including VP-001 for RP11 and PYC-001 for ADOA, are based upon the proprietary RNA conjugate platform of the company, which has been successful in early studies with other blinding eye diseases. This technology targets the roots of the underlying genetic diseases in hopes to offer treatments to those patients who already have run out of their few options. PYC continues advancing these programs through clinical trials, with initial safety and efficacy data expected in 2024 and 2025, setting the stage for pivotal trials and regulatory filings in the next few years. 

(Source: Company’s Report)

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