Our Stock Picks for 2021

  Portfolio Update Published On: 07-01-2021 14:11 p.m.

16 minute read

Happy New Year from the team at Next Investors.

We invest in a select number of high potential small cap ASX listed stocks and share our investment analysis.

Our mission is to use our experience in the markets to build a high performing ASX small cap stock portfolio.

We seek to invest in stocks that will return 1,000% plus gains.

Over the last 2 years we have taken positions in 18 carefully researched small cap ASX stocks.

We look for companies that we are comfortable to hold for 3 to 5 years, so when we add a portfolio stock we are in it for the long term and intend to see the company execute its strategy.

We provide email updates on all our portfolio stocks:

  • When they release important news and what it means,
  • If we think there might be a potential short term price rise,
  • When we believe a stock is undervalued, and;
  • When there is global news that affects one of the our stocks.

Regular readers will know that some of our portfolio stocks have already performed very well, a few hitting our goal of over 1,000% return.

So what are we holding in 2021?

Below is a list of all the positions we are holding for 2021 and beyond.

We have provided a short summary on each company, including:

โœ… 2020: What the company achieved during 2020

๐Ÿ“… 2021: What we are expecting from the company in 2021

๐ŸŒ Macro themes: Global trends we expect will drive the share price of this company

So here it is - The stocks we are holding in 2021:

Vulcan Energy Resources (ASX:VUL, FRA:6KO)

VUL exists to decarbonize the currently high carbon production footprint of lithium-ion batteries used in electric vehicles by producing a world-first Zero Carbon Lithiumยฎ hydroxide product in Germany.

โœ… 2020: VUL delivered successful test work proving >90% recoverability of Lithium, resource upgrades, capital raise from ESG investors, built out their team and had favourable EU regulations announced just a few weeks ago.

๐Ÿ“… 2021: VUL is set to release its Pre Feasibility Study literally any day now, and in 2021 we expect them to be busy signing up off-take partners and planning their first plant as part of their Definitive Feasibility Study. We have seen with peer companies that PFS release and announcing off-take agreements are major valuation inflexion points.

๐ŸŒMacro Themes: EU shift to Electric Vehicles and enforced ethical, low carbon, local sourcing of battery metals. and in battery materials production in Europe and North America. Strong interest emerging in the EV/battery/battery raw materials sector from individual and institutional investors, and particularly ESG funds.

WhiteHawk (ASX:WHK)

US based, Online Cybersecurity Exchange platform that provides cyber risk scoping, prioritization and mitigation technology.

โœ… 2020: WHK signed multiple contracts with US government agencies and large enterprises. Revenue growth was reported every quarter, increasing each time and double the revenue of 2019.

๐Ÿ“… 2021: We are watching for several key new scalable contracts and growth on contract renewals leading to revenue growth.

๐ŸŒ Macro Themes: A rise in Nation State hacks in the US and a new cyber focused administration will drive government spending on Cybersecurity across all departments and critical infrastructure sectors.

Euro Manganese (ASX:EMN, TSX.V:EMN)

Developing a Green and European source of ultra high purity manganese for Electric Vehicle batteries developed from the recycling of a tailings deposit located in the Czech Republic.

โœ… 2020: EMN raised $17M. Advanced Feasibility Study for state-of-the-art high-purity manganese products plant. Environmental permitting process initiated with Czech Ministry of Environment. Demonstration Plant commenced and Signed offtake MoUs with five prospective customers.

๐Ÿ“… 2021: We are expecting Completion of project Feasibility Study, Completion of Final Environmental Impact Assessment. Demonstration Plant installation and commissioning, including first production of ultra-high-purity manganese. Securing support from European Union agencies. Signing additional commercial and technical collaboration agreements with potential customers. Securing strategic partners.

๐ŸŒ Macro themes: Acceleration of shift to Electric Vehicles, with massive investments in EV and battery manufacturing, and in battery materials production in Europe and North America. Strong interest emerging in the EV/battery/battery raw materials sector from individual and institutional investors, and particularly ESG funds.

Elixir Energy (ASX:EXR)

Exploring for natural gas on the Mongolian-China border to replace burning of coal for energy in China

โœ… 2020: Commenced Drilling, Announced Mongoliaโ€™s first ever natural gas discovery from its first exploration well, followed by a 5 well appraisal program with each well intersecting gassy coals - and another sub basin discovered from an exploration well. Just secured $8M in funding.

๐Ÿ“… 2021: Significantly expanded program of exploration, appraisal and for the first time production testing wells in parallel to commercial discussion on farm in and offtake partners.

๐ŸŒ Macro Theme: Chinaโ€™s new 5 year plan demands reduction of burning dirty coal for energy and aims to reduce reliance on foriegn powers for energy supply

MyFiziq (ASX:MYQ)

Health Tech - Accessible yet advanced human imaging via smartphone app for health, fitness and wellbeing

โœ… 2020: Multiple distribution partners signed, including one binding term sheet for US$3.58M in minimum revenue, NASDAQ listing process commenced, integration of additional functionality, providing vital signs capture along with dermatological skin scanning identification of 588 skin conditions across 133 categories.

๐Ÿ“… 2021: NASDAQ listing, increased revenue generation from distribution partners, more partnerships

๐ŸŒ Macro Theme: Health Tech will continue to be focus of big tech like Apple, Google, Amazon. A global pandemic has seen significant growth in online, telemedicine need and acceptance. MyFiziq has a unique patented offering that captures these requirements, privately and cost-effectively for consumers worldwide.

Los Cerros (ASX:LCL)

Gold Exploration in Colombia

โœ… 2020: re-defining year with merger restructure complete, numerous legacy issues resolved, re-brand and launch of Los Cerros and articulation of exploration strategy across 3 very exciting targets. Drilling has already delivered multiple 230+m drill intercepts of surface gold mineralisation including TSDH08 at the Southern Tesorito porphyry - 230m at 1g per tonne from surface (this is a big deal). Cash raised and new, company owned rig procured heading into 2021 with 3 rigs drilling.

๐Ÿ“… 2021: โ€œbiggest drilling year yet for LCLโ€ according to company plan. $7M cash means funded for three drill rigs operating continuously across multiple sites within the Quinchia project โ€“ Tesorito, Chuscal and Miraflores. Potentially maiden JORC Resource for Tesorito porphyry later in 2021 adding to the established JORC Resource at Dosquebradas and JORC Reserve at Miraflores โ€“ all within 3km radius. Multiple additional early stage targets in the Los Cerros pipeline will also see progress in 2021.

๐ŸŒ Macro Theme: Gold price will rise a store of a value in low interest rate and high stimulus global economy.

Invictus Energy (ASX:IVZ)

Gas Exploration in Zimbabwe - Billion Barrel of Oil Equivalent target to be drilled in 2021, potentially the largest, seismically defined, undrilled structure onshore Africa.

โœ… 2020: Project received โ€œpriority statusโ€ from Zimbabwe government, Environmental impact approval and strategic investment from Mangwana Opportunities Fund and non-binding farm in offer received in December.

๐Ÿ“… 2021: Expecting Petroleum Exploration and Production Agreement (PEPDA) signed with Zimbabwe Government, Farm out deal signed with and most importantly.... the big drilling event will happen in 2021, this is the main event.

๐ŸŒ Macro Theme: Oil & Gas was unloved during Covid 2020, expecting a rebound in 2021

Minbos Resources (ASX:MNB)

An ASX-listed exploration company with a world-class phosphate ore project within the Cabinda Province of Angola. The Company is seeking to deliver its proprietary fertiliser product into a farming region which remains chronically under fertilized products and has Brazil-style growing conditions and farm production potential.

โœ… 2020: Successfully rebid for the Cabinda Phosphate Project, delivered a robust scoping study, MoU with IFDC signed, appointed three high-calibre Non-Executive Directors, consolidated its share structure and raised AUD$2.5M to set up for a share price appreciation and project development.

๐Ÿ“… 2021: We expect the Angolan government to sign off the Mining Investment Contract any day now. Securing of Debt funding and commencement of construction of the Cabinda Phosphate Project and offtake contracts secured.

๐ŸŒ Macro Theme: Global food security and socially responsible food production in Africa, strong ESG credentials and access to an emerging market with Brazil-style growing conditions and farm production potential.

Tempus Resources (ASX:TMR, TSXV:TMR)

Gold Exploration in Canada and Ecuador

โœ… 2020: Drill permitting achieved on the Companyโ€™s projects in Canada and Ecuador. Maiden drilling programs were completed at Blackdome-Elizabeth, built board and management capability and listed in Canada on the TSX-V. Remained well funded with repeated support from Australian and North American institutional investors.

๐Ÿ“… 2021: Maiden JORC compliant mineral resource and significant drilling programs at Blackdome-Elizabeth to support feasibility studies. Maiden drilling program at the Rio Zarza Prospect in Ecuador.

๐ŸŒ Macro Theme: Gold price will rise a store of a value in low interest rate and high stimulus global economy.

88 Energy (ASX:88E, LSE:88E)

Oil Exploration in Alaska

โœ… 2020: Drilled Charlie-1 well on Project Icewine (free carried via farm-out) resulting in large oil discovery in Seabee Fm and gas/condensate discovery in Torok Fm on North Slope of Alaska. Acquired XCD Energy via off market takeover then completed farm-out of the obtained assets known as Project Peregrine.

๐Ÿ“… 2021: Drill up to two wells on Project Peregrine, spud commencing Feb 2021. Exposure to drilling on neighbouring acreage Jan 2021. Farm-out Project Icewine and explore commercialisation options for over 1 TCF of discovered gas.

๐ŸŒ Macro Theme: Oil & Gas was unloved during Covid 2020, expecting a rebound in 2021

Thomson Resources (ASX:TMZ)

Exploration and development of Australiaโ€™s highest grade undeveloped silver asset

โœ… 2020: Announced acquisition of 100% interest in the Webbs Silver Project and Conrad Silver Project in the New England Fold Belt in NSW, adding to portfolio of assets in tin, gold and silver. Completion of drilling on key gold projects. Expanded tin and gold portfolio.

๐Ÿ“… 2021: Complete acquisition of Webbs and Conrad, as well as further expand its silver resource base, both organically and via acquisitions. Complete resource drilling for Bygoo Tin Project and complete further drilling and analysis in all Gold projects.

๐ŸŒ Macro Theme: Silver historically trails gold price movements, and is poised for a run this year after being undervalued in 2020. Silver is seen as hedge against inflation which market predicts as becoming an issue due to increased money supply. Rapidly rising demand for silver in industrial applications. support for solar energy investments under a Biden presidency, the European Green Deal, and Chinaโ€™s 2060 carbon neutral goal, among other initiatives.

Galileo Mining (ASX:GAL)

Nickel Exploration in Western Australia

โœ… 2020: Maiden drilling program undertaken at the Companyโ€™s highly prospective nickel targets within the Fraser Range Nickel Belt in Western Australia. Significant exploration work programs at the Lantern Prospect involving Regional EM Surveying, diamond drilling and RC drilling. Nickel sulphide exploration near Norseman has also been progressed with a large soil sampling program completed.

๐Ÿ“… 2021: Fraser Range RC drilling scheduled for mid-February 2021 with EM targets at Lantern East and follow up drilling at Lantern South. GAL is also expected to drill test its Norseman Project, located 50km from nickel deposits at Cassini, Mariners and Wannaway.

๐ŸŒ Macro Theme: Acceleration of shift to Electric Vehicles, with massive investments in EV and battery manufacturing, and in battery materials production in Europe and North America. Expectation for nickel-in-vehicle demand to surge, due to demand for nickel-based cathodes and increasing nickel in battery chemistries.

Pursuit Minerals (ASX:PUR)

Precious metals exploration in Western Australia (new mineral province)

โœ… 2020: Assessed an option on an alluvial gold project in the USA, it didnโ€™t pass due diligence so the option was not exercised. Recently acquired PGE-Nickel-Copper exploration licenses next to the $1.2BN Chalice discovery in the emerging Julimar Province.

๐Ÿ“… PUR is well funded, with active exploration programmes planned in the first half of 2021, including EM surveys and drilling across its projects, providing near term catalysts.

๐ŸŒ Macro Theme: Nearby companies are expected to be releasing drilling results too, positive results will be positive for all the Julimar players. Precious metals continue to perform well.

Province Resources (ASX:PRL)

Formerly SVD - Currently looking for a new project.

โœ… 2020: Attempted exploration for EM targets in the Patterson province failed - not a great result so far but we continued to hold and buy more - changed name from Scandivanadium (SVD) to Province Resources (PRL).

๐Ÿ“… 2021: Currently assessing potential new project to focus on.

๐ŸŒ Macro Theme: currently unknown - watch this space.

Alexium International (ASX:AJX)

Environmentally-friendly flame retardant chemistries for many fabrics, including synthetic-rich fabrics, in the textile industry

โœ… 2020: Revenue growth of 20% versus prior fiscal year coupled with key product launches including UL certification of first flame retardant cotton treatment for eco-friendly barrier fabrics and new-to-the-world perpetual cooling technology for textile-and foam-based consumer products.

๐Ÿ“… 2021: Company's growth driven by integration of new proprietary technologies into new consumer products for the bedding market.

๐ŸŒ Macro Theme: Consumer demand for environmentally friendly and high performance cooling and flame retardant products drives broad integration of Alexium technologies in bedding products.

GTI Resources (ASX:GTR)

Uranium exploration in the USA

โœ… 2020: Acquired a number of highly prospective, past producing uranium and vanadium properties located in the Henry Mountains, within Garfield and Wayne Counties near Hanksville, Utah, USA. Completed uranium and vanadium drilling program at the Jeffrey Project in Utah.

Commenced its phased exploration program including its maiden drilling campaign, followed by RC drilling at the Niagara gold project in Western Australia.

๐Ÿ“… 2021: Utah Uranium exploration planned for early Q2 2021, with a follow-up program in Q3 based on results. Initial gold analysis from Niagara Gold Project RC drilling expected during February 2021.

๐ŸŒ Macro Theme: Uranium in the USA will form part of the Joe Bidenโ€™s clean energy policy, including localisation of U supply. Any rise in Uranium price will positively impact GTR.

Titan Minerals (ASX:TTM)

Gold development and exploration in Ecuador

โœ… 2020: Core Gold Inc acquisition was completed, with its assets having been fully assessed and permits put in place to advance the main projects - Dynasty and Copper Duke. Management focused on establishing JORC compliant resources in Ecuador.

๐Ÿ“… 2021: In the next 6 months, Titan will accelerate the drilling at Dynasty with an additional 60,000m believed to be in the pipeline. The aim to reflect a multi-million ounce resource in the making. Also commencing delineation drilling at Dynasty which includes in-fill and extension drilling on the updated geological model which will underpin the studies.

In addition Titan will begin important maiden drilling at Copper Duke where management is concentrating the program on trenching gold rich copper targets.

Copper Duke has huge potential to be a multi-phase gold rich system. An epithermal system overprinting a gold rich copper porphyry. Watch for the Aero mag interpretation to come.

๐ŸŒ Macro Theme: Gold price will rise a store of a value in low interest rate and high stimulus global economy.

Vonex (ASX:VN8)

Telecommunications company providing innovative VoIP solutions

โœ… 2020: Growth across Wholesale division centred around the successful integration of 2SG Wholesale, allowing Vonex to develop new products, expand product offerings and capitalise on cross-selling opportunities. Vonexโ€™s Retail divisions achieve Total Contract Value of new customer sales of $6.6 million in CY20. In December, Vonex announced its intention to acquire Nextel, which will provide an immediate ARR boost of approximately $1 million.

๐Ÿ“… 2021: Continue to accelerate Organic Growth in both Retail and Wholesale businesses. Work closely with Optus as one of the key partners selected to roll out 5G. Continual expansion of direct NBN POIโ€™s. Acquisition-led growth strategy, particularly targeting opportunities among sub-$10 million revenue.

๐ŸŒ Macro Theme: 5G capable devices and infrastructures to roll out into the market, which will boost the transition into the โ€˜Internet of Everythingโ€™ network of people, processes, data and things.

Notable Mention: Creso Pharma (ASX: CPH)

โœ… 2020: In the past, we had invested in CPH and got badly burnt. However we decided to participate in the last placement at 2.9c as a short term trade. We thought CPH was near the bottom and might rise in the lead up to Christmas. We were surprised it ran as hard as it did.

๐Ÿ“… 2021: We have decided to maintain a position in CPH for 2021 expecting further revenue growth, tightened cost structure and favourable regulatory tailwinds for cannabis.

๐ŸŒ Macro Theme: The US cannabis industry is expecting real change to come from the Biden Administration now that the Democrats will have control of the Senate. This could open the door to federal cannabis reform.

What to expect from Next Investors in 2021:

We provide email updates on all our portfolio stocks:

  • When they release important news and what it means,
  • If we think there might be a potential short term price rise,
  • When we believe a stock is undervalued, and;
  • When there is global news that affects one of the our stocks.

We will also announce our next portfolio addition in the coming weeks.

Next Investors