• ASX rises despite Fed boss Jerome Powell’s hawkish message
  • MinRes in hot water again
  • Cyclone Metals surges after signing deal with giant Vale

 

Aussie shares kicked off Friday on a positive note despite a mixed lead from Wall Street.

At about 1.05pm AEST, the S&P/ASX 200 Index was up 0.43%.

Overnight, Wall Street lacked direction after comments from Federal Reserve chairman Jerome Powell, who signalled caution in rate cuts and stressed the need for careful decision making.

Back in Adelaide today, the Sohn Australia conference is being held, attended by high-profile investors. There’s bound to be lots of stock picks coming out of this event.

On the ASX, the Utilities sector was the clear leader this morning, led by a 3% spike in Origin Energy (ASX:ORG) on no specific news. 

Healthcare lagged and was weighed down by a 2% drop in heavyweight CSL (ASX:CSL), again on no specific news. 

 

Source: Market Index

 

Source: Market Index

 

In large caps news, Lendlease Group (ASX:LLC) surged nearly 5% after CEO Tony Lombardo told shareholders the company was set to launch a $500 million share buyback.

Market operator the ASX (ASX:ASX) jumped by 1% following its defence against claims from the Australian Securities and Investments Commission regarding misleading statements about its CHESS replacement project. 

The ASX maintains it did not breach the law in statements made in February 2022, and denied any wrongdoing, though it acknowledged the delays in the project.

Woolworths (ASX:WOW) and Coles Group (ASX:COL) were both in the spotlight after acknowledging that class action suits were underway for allegedly misleading discounting practices. Both supermarket giants are preparing to defend themselves against the claims.

And in a twist for Mineral Resources (ASX:MIN), the mining company has now admitted it should have disclosed a rental relief scheme that benefited firms linked to its founder’s daughter, Kristy-Lee Craker. 

MinRes said the scheme, which ran for over a decade, wasn’t deemed “materially price-sensitive” at the time, but has now acknowledged the need for transparency. MinRes shares were down over 4%. 

Meanwhile, copper futures were heading for their seventh consecutive weekly drop today, dragged down by a weak outlook for Chinese demand and a stronger US dollar following the re-election of Donald Trump. 

 

NOT THE ASX

Overnight, Wall Street was mixed after Jerome Powell indicated that there was no immediate need for rate cuts, as the US economy continues to hold up. 

His remarks shifted market sentiment, with traders pulling back on expectations for a December rate reduction.

Prior to Powell’s comments, the market had been pricing in an 80% chance of a rate cut, but this dropped to 55% following his speech. 

In US stocks news, Tesla and Rivian shares fell following reports that President-elect Donald Trump plans to eliminate the US$7,500 tax credit for electric vehicle purchases in the US. 

Walt Disney rose after reporting better-than-expected profits.

Meanwhile, Meta Platforms was hit with a €798 million fine by European Union regulators.

The fine was imposed after the EU found that Meta had violated antitrust laws by tying its Facebook Marketplace service to its broader social network, Facebook. 

 

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for November 15 [intraday]:

Swipe or scroll to reveal full table. Click headings to sort:

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NoviqTech’s (ASX:NVQ) share price surged today after securing a strategic placement to raise $1.05 million to accelerate its blockchain solutions. 

The funding was backed prominent investors, including Antanas Guoga, aka Tony G, a renowned blockchain innovator, whose endorsement bolstered investor confidence.

The capital will fast-track the development of NoviqTech’s blockchain-powered technology, aimed at supporting sustainability and transparency in business. 

Cyclone Metals’ (ASX:CLE) share price also surged  after announcing a Memorandum of Understanding (MoU) with global mining giant Vale for the development of its Iron Bear iron ore project in Canada. 

Under the deal, Vale will invest up to US$18 million to fund initial development activities, with the potential for Vale to earn a 75% stake in the project as it progresses.

The strategic partnership with Vale, a leader in iron ore production, is seen as a major boost for the project, helping to unlock its full potential and bring it closer to a Decision to Mine.

Vection Technologies’ (ASX:VR1) shares jumped following the announcement of a $0.5 million AI contract with The Digital Box (TDB), which will provide a Dell Algho Appliance to a global leader in railway solutions. 

According to Vection, this deal highlights the growing market validation of the company’s AI capabilities, particularly after its planned acquisition of generative AI company TDB. The contract is expected to generate recurring revenue, with additional income projected in 2025 and beyond. 

Red Sky Energy (ASX:ROG) rose after the company announced that its partner Santos had mobilised a workover rig to the Yarrow 1 well site in the Innamincka Dome. 

The re-entry and planned fracture stimulation at Yarrow 1 are expected to boost gas production and significantly enhance future cash flows, said Red Sky.

This follows the success of Yarrow 3, which has already generated over $3 million in revenue. The work is expected to be completed by January 2025, with Yarrow 1 fully operational by mid-2025, further supporting Red Sky’s long-term growth strategy.

Smart Parking (ASX:SPZ) rose 12% after the company announced an ambitious growth plan at the AGM today.

The company aims to have 3,000 new parking sites under management by December 2028.

SPZ said it’s also focusing on expanding its sales team and building a strong pipeline of opportunities, with the number of new sites added each year growing steadily (from 123 in FY21 to a projected 312 in FY24).

The company will also focus on expanding into more countries, including the UK, Germany, Denmark, and New Zealand, while continuing to explore expansion in Scandinavia, Europe and the USA. 

 

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for November 15 [intraday]:

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Peninsula Energy’s (ASX:PEN)  shares dropped heavily after the company announced delays and cost overruns at its flagship Lance uranium project. 

The construction of the Central Processing Plant (CPP) is now expected to cost an additional US$9.5 million, and the production ramp-up for 2025 has been revised downwards to 600,000 lbs of uranium, from the previous forecast of 700,000 to 900,000 lbs.

Also, the company faced challenges with commissioning new systems, causing further delays. Despite having a solid cash balance, these issues, along with management changes, have raised some concerns.

 

IN CASE YOU MISSED IT

CuFe’s (ASX:CUF) subsidiary Jackson Minerals has sold its 2% net smelter royalty over the Crossroads gold project to project owner Northern Star.

The funds will be used to progress CuFe’s Tennant Creek copper-gold project, which hosts a resource of 7.3Mt of copper at 1.7% and 0.6g/t gold. The deal means the company will secure funds now rather than waiting for royalty payments.

“We believe the certainty of knowing what we will receive from the deal and being able to plan our work programs accordingly offers the best option for us,” CuFe executive director Mark Hancock said.

“The value of royalty streams is always uncertain when they form part of the consideration for a tenement sale so to receive $4m cash for an asset that was sold more than 10 years ago is a great result for CuFe and its shareholders.”

Plus, Hancock notes the Tennant Creek area is ‘hot’ right now, with gold miner Pan African Resources announcing the purchase of private Tennant Creek-focused gold developer Tennant Creek Mining Group (TCMG) for US$54 million plus debt assumed, demonstrating its faith in the region.

Not to mention the company’s own recent strategic agreement with Emmerson Resources and Tennant Minerals to collaborate on their copper, gold and critical metals development opportunities and a potential development of a single multi-user processing facility in the region.

D3 Energy (ASX:D3E) has begun production testing at the RBD12 well recently drilled at its helium and natural gas ER315 project in South Africa.

The plan is to evaluate reservoir characteristics, flow rates, and pressure responses, as well as gas composition, which will provide critical data to inform the company’s ongoing exploration and development strategy – and plans to eventually submit a Production Right application to South African authorities.

However, initial results have seen the well flow gas for short periods with the flow then dropping off, an issue of rapid pressure build-up which may suggest wellbore damage has occurred during drilling.

“Whilst the commencement of testing at RBD12 has seen some initial challenges, it is not usual for some wells to take time to clean up,” MD and CEO David Casey said.

“It is also particularly encouraging that we see gas pressure rapidly build up upon shut in followed by another cyclical peak in gas flow.

“All that said, we will continue to assess any and all remedial options available to us.”

Dimerix (ASX:DXB) has received a $7.9m R&D tax rebate for the 2023/24 financial year,  putting the company in a solid financial position as it progresses the ACTION3 phase III clinical trial of its DMX-200 treatment for Focal Segmental Glomerulosclerosis (FSGS) kidney disease.

“We greatly appreciate the support of the Australian government with this invaluable incentive, as Dimerix advances DMX-200 towards potential commercialisation,” CEO and MD Dr Nina Webster said.

“This rebate will be applied to progressing the company’s lead global phase III clinical program in FSGS kidney disease patients, and further supports the company’s existing strong cash position.”

Interim analysis of the trail data is anticipated around mid-2025 calendar year.

Altech Batteries (ASX:ATC) is raising $4m at $0.06 per share to progress its CERENERGY salt-based batteries and Silumina Anodes projects, including securing project finance, bank due diligence processes, securing offtake and environmental and project permitting.

The funds will also be directed towards the fabrication of second 60kWh battery prototype for the CERENERGY project and commissioning of the Silumina Anodes pilot plant in Germany.

“This capital raise comes at an exciting juncture for Altech as it advances the commercialisation of its 120MWh CERENERGY battery project and nears commissioning of the Silumina Anodes pilot plant,” MD Iggy Tan said.

“A portion of the funds will also be allocated to a preliminary study for a larger 4 GWh battery facility, marking the next significant step towards commercialisation.”

 

At Stockhead, we tell it like it is. While CuFe, D3 Energy, Dimerix and Altech Batteries are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should really consider obtaining independent advice before making any financial decisions.

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