When Tony Locantro gives you his stock picks for 2023, you pay attention. He’s been advising on small-cap equities since 1998. He has a deep knowledge of junior mining, biotech companies, and the band Pearl Jam. He recently spoke to Martin North on his DFA channel and gave his 2022 year-end wrap-up. And he also gave his top biotech and mining stock tips for 2023.
Read on for Tony’s top biotech and mining stock picks for 2023 or feel free to jump ahead.
Tony Locantro – Dead Set Legend.
Tony loves to talk about delusions of grandeur and the dopamine levels of modern-day investors. He is often hilarious and I’m prone to a dopamine hit whenever he appears on the Small Caps channel. His analysis and insights are fantastic. And I blame him for getting me interested in buying physical silver and speculative mining stocks.
Behind the jokes and 90’s rock references, Tony delivers a lot of insight. He’s open, honest and humble in his performance. He admits that 2022 was “a bit of a shocker” and he’s had a “disastrous year”. But most investors are in the same boat. But how many openly talk about it? Tony’s take is refreshing and I encourage anyone to follow him and follow his insights.
Now onto Tony’s biotech and mining Stock Picks for 2023.
Top 5 Biotech Stocks for 2023
Tony Locantro believes that the following stocks look attractive on a risk/reward basis. It has been a terrible year for the biotech sector in 2022, but he doesn’t think the valuations are stretched. These five companies have managed to maintain high levels of cash. And he is very happy with the potential of all five companies here.
Proteomics International Laboratories Ltd (ASX: PIQ)
Proteomics is a medical technology company focused on predictive diagnostics and bioanalytical services. This is one of Tony’s preferred stocks for 2023 which is also highly speculative.
Why Does Tony Locantro like Proteomics?
Proteomics have a predictive blood test called PromarkerD. It picks up diabetic kidney disease in those with diabetes up to four years before it happens. They have a letter of intent signed with Sonic Healthcare. Along with various other projects that have encouraging results so far.
Tony has worked with the management of Proteomics for a few years. He is confident in their ability. And they have a lab services business in WA which generates around $3 million in revenue per annum. This keeps the lights on and makes the stock an attractive buy.
Radiopharm Theranostics Ltd (ASX: RAD)
Radiopharm is an Australian research and development group that focuses on radiopharmaceutical products. After Radiopharm’s IPO at 60 cents, Tony believes that it “rang the bell” for the biotech sector. Since the IPO, the share price has fallen off a cliff. Tony says that “it’s been shocking and I think it’s a reflection of the biotech sector.”
Why Does Tony Locantro like Radiopharm?
Radiopharm has announced positive news on brain imaging and their HER2 breast cancer imaging. This breast cancer imaging can detect tumors effectively. Unfortunately, it was met with a market sell-off.
Radiopharm (ASX: RAD) has “one of the richest pipelines in the much beaten up ASX biotech sector”
Dimerix (ASX: DXB)
Dimerix develops new therapies in areas with unmet medical needs. They currently have a kidney disease drug called DMX 200, which is in phase three trials. They have recruited 72 patients globally. It should get some results on the success of the trial in the latter part of 2023.
Why Does Tony Locantro Like Dimerix?
Tony explains that “Dimerix are also looking at partnering with this drug should it be successful. And when you’ve got orphan drugs status, you can commercialize them quite quickly if successful. So the risk-reward I feel is multiple upside. If the phase three trial doesn’t make a critical endpoint, then obviously you’re going to get thumped. But it’s very rare for an Australian biotech to be in phase three at that valuation.”
Nyrada (ASX: NYR)
Nyrada is a pre-clinical stage, drug development company that specializes in cardiovascular and neurological diseases. They have had a few great announcements on high cholesterol trials. And traumatic brain injury drugs are slowly progressing in the background. With all its success, Nyrada is also one of the most “frustrating” stocks that Tony covers.
Why Does Tony Locantro Like Nyrada?
Biotech stocks can be frustrating for Tony. He says “I’ve seen in the market… even though these biotech stocks have been decimated, let’s be honest. I can’t hide away from that fact. I think that if successful, Big Pharma have hundreds of millions of dollars. And they will certainly look to buy out some of these small biotech companies in Australia. These companies get pretty much zero attention.”
Adalta (ASX: 1AD)
Adalta is a clinical-stage drug discovery and development company. It uses i-body technology and is Tony’s “roughie” out of his biotech picks.
Why Does Tony Locantro Like Adalta?
Tony says that “They have AD-214 which is looking at fibrosis. Adalta has had some difficulty in working out the best way to deliver the drug. They do have an alliance with GE Healthcare and they have managed their cash position. Adalta are well cashed up and they have multiple assets and again, they’re looking for partners.”
Top 5 Mining Stocks for 2023
Tony believes it has been a big year for EV stocks. Where companies that “backdoored in” rare earth lithium projects doing exceptionally well. That is until the end of 2022 with a major correction taking place. Particularly in lithium stocks which were overdue according to Tony.
Saying that, Tony’s top 5 mining stocks are a great group of picks.
Maronan Metals (ASX: MMA)
Maronan metals focus on the exploration, evaluation, and development of lead-silver-copper-gold and other deposits. And it has a view to becoming a miner in the short to medium term. Tony assisted in the Maronan IPO, with assets in Cloncurry. North Queensland.
Why Does Tony Locantro like Maronan?
Tony went on to explain that “I think if silver comes in for more attention, speculators are going to target these ASX stocks with silver in the ground. So drilling to date has yielded some great results. It looks as though their resource is going to grow. They are drilling a deep hole looking for some more lead-silver Cannington style as they call it. And that hole would probably be just over a kilometer down, targets 1500 meters.”
Maronan (ASX: MMA) has “100 million ounces of silver with the potential to grow through further exploration.”
Red Metal (ASX: RDM)
Red metal is a mineral exploration company focused on giant copper, copper-gold, copper-nickel and silver-lead-zinc deposits in Australia. It has been a listed ASX company for 19 years.
Why does TonyLocantro like Red Metal?
Tony explains that “They have maintained a tight structure. They do have some really prospective projects in their own outright and they own 50% of Maranon metals. So there is an arbitrage opportunity between both companies at some point. Red metal does trade at a discount towards holding it in Maronan.”
Red Metal (ASX: RDM) is Tony’s “biggest position and main hope for 2023”
Aurumin (ASX: AUN)
Aurumin is an Australian-based advanced gold exploration company. It has two project areas in Western Australia.
It has been an “annus horribilis” for Aurumin. It’s “totally unloved by the market”. It’s one of the most disappointing gold stocks Tony has been involved with, but he remains upbeat about the company.
Why does Tony Locantro like Aurumin?
Tony says “…what I really like about them is management. How they have acquired the sandstone project, how they’ve upgraded it, increased the grade. But where Aurumin has struggled has been with capital raising. And the results of recent raisings have been certainly disappointing.”
The management of Aurumin is trying to grow the company. Tony continues, adding more context to their story.
“It can take a number of years (to grow the company. And what I’ve tried to reiterate to my clients especially, is that for a gold company to grow, you often need gold price or industry weakness to be able to acquire assets that the majors don’t want. And that certainly allowed the likes of Northern Star and Evolution to grow. So eventually, we will have Junior gold companies become the next mid-tier”
Unfortunately, as Tony mentions, growth can take time. You need to be patient as it can take a number of years.
Pac Gold (ASX: PGO)
Pac Gold is a gold exploration company. It has eight mining leases and five exploration permits in the Alice River region of North Queensland. Pac Gold listed at 25 cents and went to $1 reasonably quickly before dropping. But Tony believes it’s a great junior miner.
Why does Tony Locantro like Pac Gold?
Tony says that “It is looking like a decent Gold Project. They have had some high-grade results. It’s 30 kilometers of strike. And I think that once the market picks up for junior gold explorers, I think they’ll come to the fore.”
Eagle Mountain (ASX: EM2)
Eagle Mountain Mining Limited is a copper-gold explorer. It is focused on the exploration and development of highly prospective projects in Arizona.
Why does Tony Locantro like Eagle Mountain?
Tony likes Eagle Mountain because… “Their copper results in Arizona have been fantastic. They are looking at refurbishing the underground drilling from underground. And hopefully, they get approvals for their OREX Exploration Project nearby which could add another dimension to the project. But I think that the forecasts are clearly that the world is going to need a lot more copper. Especially for EVs and to get to zero emissions, numerous mines have to be discovered and put through the environmental rigmarole and brought into production.”
Eagle Mountain (ASX: EM2) is one of Tony’s “main copper stories for 2023, coming off a stupid cheap base”
Copper Search (ASX: CUS)
Copper Search targets copper-gold deposits within the Gawler Craton of South Australia. Tony categorized Copper Search as his “Powerball” stock. Where the risk-reward involved will make the stock a “hero or zero” pick.
Why does Tony Locantro like Copper Search?
Tony explains why the reward could be great for Copper Search:
“Copper search own some great ground in this region. And if there’s some further interest, I think there could be a bit of a land grab. Copper search has provided a number of shallow targets, and a number of deep targets as well.
Copper Search (ASX: CUS) are “well cashed up and they will be swinging hard in 2023”
Final Thoughts
Tony Locantro is the man! He has provided some great stock tips in biotech and mining for 2023. These stocks all have “extreme risk” attached to them. But they are worthy of further research for any speculative investor.
Tony looks at the risk-reward ratio on these stocks. They all have good management and great potential. They just need a market that’s prepared to listen. For more insights on these stocks and more, make sure to check out Tony Locantro in 2023 in his small-caps appearances. It’s always a treat.
M. Moneyman
