ASX Large Caps: Shares swing to loss, Silver Lake plunges 19pc while China releases worrying data

• The ASX swung to a modest loss on Monday
• Earnings updates from Silver Lake, IGO and Lynas
• China released worrying data 

Local shares swung to red territories in the afternoon as traders dumped Staples and Tech stocks, which fell by 1% each.

Q4 earnings report from lithium producer IGO (ASX:IGO) didn’t impress investors, neither did  gold miner Silver Lake Resources (ASX: SLR) which sank almost 20% (see details below).

Energy stocks were flat despite WTI prices holding of above US$80 a barrel after a run of five weekly gains.

The best performing large cap today was Meridian Energy (ASX:MEZ), which rose 5%, followed by fleet management company McMillan Shakespeare (ASX:MMS), rising 4%. Both had no specific news.

Elsewhere, China’s manufacturing activity has contracted for a fourth month in a row in July, with the PMI coming in at 49.3. But more worryingly, business expectation within the non-manufacturing sectors has declined from the previous month.

However, the rally in Chinese stocks extended today, with the Hang Seng China 50 (CH50) index gaining 0.7% after a 5% gain last week.

“There is more confidence now that China will back up stimulus talk with concrete measures,” said Vey-Sern Ling of Union Bancaire Privee.

BIG CAP WINNERS

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Lynas Rare Earths (ASX:LYC) rose after recording its highest ever quarterly production of NdPr at 1,864 tonnes, and Mt Weld delivering record quarterly concentrate production. But the miner reported quarterly sales revenue of $157.5m, down from $237m in the previous quarter.

Aluminium boxite miner Alumina (ASX:AWC) rose after announcing the appointment of Alistair Field as a Non-Executive Director with effect from 15 January 2024. Field is retiring as the CEO of Sims Limited, and AWC believes he will bring extensive operational, corporate and industry experience to the Board of Alumina.

Gold miner Emerald Resources (ASX:EMR) rose after achieving its June 2023 quarter guidance with gold production of 27.2koz at an AISC of US$789/oz. Full year guidance has also been achieved. June 2024 guidance is set at gold production of 25-30koz per quarter, with AISC US$780 – US$850/oz.

BIG CAP LOSERS

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Silver Lake (ASX:SLR) fell 18% after informing investors that it expects to sell between 210,000 and 230,000 ounces of gold during FY24 with an AISC between $1,850 and $2,050 per ounce. These are below FY23 production and a higher cost base than FY23.

Lithium miner IGO (ASX:IGO) fell despite a 19% jump in Q4 earnings. IGO said its Nova nickel mine produced at the low end of guidance. IGO also announced a formal capital management policy, saying it will target a shareholder payout range of 20%-40% of underlying free cash flow, when liquidity is below $1 billion.