ASX Lunch Wrap: ASX slumps as Rio seals copper deal with Sumitomo

ASX dips after record ‘Santa rally’ and global market jitters
Rio Tinto, Sumitomo strike $615m copper deal
Aussies spend smarter in Black Friday sales, NAB reports

The ASX took a step back this morning after a record-breaking ‘Santa rally’ on Tuesday.

At around lunchtime on Wednesday, the benchmark S&P/ASX 200 had dropped by 0.7% as investors digested mixed signals from global markets.

Overnight, the US S&P 500 even notched its 55th record high of 2024, while the tech-heavy Nasdaq surged on the back of Apple’s continued rally.

But the mood temporarily shifted after South Korea’s president declared martial law in an attempt to curb political opposition and prevent “anti-state forces” from undermining his government. He quickly reversed the decision after lawmakers unanimously rejected it and protesters rallied against it.

This is where the ASX stood at around 12:40pm AEDT. Real estate, Utilities, as well as lithium stocks were among the biggest laggards.

A notable announcement from the big end of town came from Rio Tinto (ASX:RIO) and Japan’s Sumitomo Metal Mining (SMM) with a major deal in the copper sector.

The two giants have agreed to form a joint venture to develop the Winu copper-gold project in WA’s Great Sandy Desert. As part of the deal, SMM will acquire a 30% stake for $615 million, a move that boosted Rio Tinto’s stock by 0.3%.

Meanwhile, Pro Medicus (ASX:PME), the medical imaging software company, rose by 3% after founders Dr Sam Hupert and Anthony Hall reassured investors they have no plans to sell more shares in the foreseeable future.

And in consumer news, NAB reported a 4% increase in overall spending during Black Friday sales, but with an interesting twist: the number of transactions dropped by 4%.

This suggests that while Aussies are spending less frequently, they’re making more thoughtful purchases, opting for high-ticket items like TVs, cameras and furniture.

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for December 4 [intraday]:

Code	Name	Price	% Change	Volume	Market Cap
NRZ	Neurizer Ltd	0.002	100%	550,668	$2,817,861
VPR	Volt Group	0.002	100%	3,649,032	$10,716,208
PTR	Petratherm Ltd	0.325	59%	13,475,277	$63,385,301
NYM	Narryermetalslimited	0.056	56%	5,177,516	$4,770,219
NIM	Nimyresourceslimited	0.080	54%	1,170,253	$9,095,776
BYH	Bryah Resources Ltd	0.004	33%	252,000	$1,509,861
ARN	Aldoro Resources	0.120	32%	3,046,989	$12,250,761
FXG	Felix Gold Limited	0.090	27%	2,909,982	$23,334,563
MX1	Micro-X Limited	0.090	27%	2,113,756	$41,293,867
BM8	Battery Age Minerals	0.125	25%	1,599,628	$10,177,414
MTM	MTM Critical Metals	0.150	25%	15,152,959	$48,793,053
RDG	Res Dev Group Ltd	0.025	25%	460,874	$59,017,162
TEE	Topendenergylimited	0.125	25%	1,695,548	$8,828,125
CTO	Citigold Corp Ltd	0.005	25%	498,806	$12,000,000
IOD	Iodm Limited	0.185	23%	28,054	$91,577,010
G50	G50Corp Ltd	0.220	22%	3,372,927	$27,734,473
LYK	Lykosmetalslimited	0.017	21%	5,128	$2,636,978
ALM	Alma Metals Ltd	0.006	20%	200,457	$7,832,611
JRV	Jervois Global Ltd	0.012	20%	888,373	$27,027,638
ODE	Odessa Minerals Ltd	0.006	20%	1,817,399	$6,341,413
BVS	Bravura Solution Ltd	1.973	19%	1,933,973	$742,025,873
KNG	Kingsland Minerals	0.190	19%	5,263	$11,609,746
M4M	Macro Metals Limited	0.013	18%	12,184,701	$39,854,176
NAG	Nagambie Resources	0.026	18%	11,333,811	$17,525,985

Petratherm (ASX:PTR) has reported impressive maiden drill results from its Rosewood Prospect in South Australia’s Muckanippie project, confirming a major discovery of heavy mineral sands (HMS). The first five drill holes along a 2km trend returned high concentrations of heavy minerals, with some intercepts showing up to 39.7% HM.

Preliminary analysis suggests valuable minerals like Leucoxene and Rutile are present. A further 45 drill holes are expected to provide more results in the coming weeks. Meanwhile, Hole EL6715 of the project was granted to Leasingham Metals, a, wholly owned subsidiary of Narryer Metals (ASX:NYM) for a period of six years.

Aldoro Resources (ASX:ARN) has confirmed niobium mineralisation over 262 metres at Line 4 of its Kameelburg carbonatite, with an average grade of 0.52% Nb2O5. Highlights include 94 metres at 0.93% Nb2O5, with a 30-metre section showing 1.2% Nb2O5. Niobium is a high-value commodity, currently trading at US$57,000 per tonne.

Micro-X (ASX:MX1) has been awarded a US$8.2m contract by the US Advanced Research Projects Agency for Health (ARPA-H) to develop a lightweight and portable Full Body CT scanner. The contract will fund the first two years of development, with an option for a further US$8.2m over the next three years, contingent on milestones. MX1 said this non-dilutive funding will enable the company to retain full rights to the technology as it works towards FDA approval.

Top End Energy (ASX:TEE) has entered a binding agreement to acquire Serpentine Energy and its 100% owned natural hydrogen project in Kansas, US. The project is located in a prime area with growing exploration activity, and the company has raised $6 million through a placement to fund expansion.

Bravura Solutions (ASX:BVS) has upgraded its FY25 guidance, expecting cash EBITDA between $33m and $36m, EBITDA between $41m and $44m, and revenue between $240m and $245m, following a successful business transformation. The company also plans to restart dividend payments in February 2025, with the first payment in March, alongside a capital return of at least $0.163 per share in January.

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for December 4 [intraday]:

Code	Name	Price	% Change	Volume	Market Cap
CYB	Aucyber Limited	0.125	-38%	931,577	$32,712,672
HCD	Hydrocarbon Dynamic	0.002	-33%	12,000	$2,783,525
88E	88 Energy Ltd	0.002	-25%	966,541	$57,867,624
AMD	Arrow Minerals	0.002	-25%	3,786,021	$26,447,256
LNU	Linius Tech Limited	0.002	-25%	7,496,315	$12,302,431
SKN	Skin Elements Ltd	0.003	-25%	20,461	$2,357,944
PIL	Peppermint Inv Ltd	0.006	-21%	432,474	$15,112,008
MMR	Mec Resources	0.004	-20%	555,334	$9,159,035
ROG	Red Sky Energy.	0.009	-18%	31,139,963	$59,644,499
ADD	Adavale Resource Ltd	0.003	-17%	1,000,000	$3,704,796
BPP	Babylon Pump	0.005	-17%	57,582	$14,997,294
ERA	Energy Resources	0.003	-17%	3,141,395	$1,216,188,722
ERL	Empire Resources	0.003	-17%	64,455	$4,451,740
EVR	Ev Resources Ltd	0.003	-17%	120,000	$4,188,814
GGE	Grand Gulf Energy	0.003	-17%	600,000	$7,351,161
ADX	ADX Energy Ltd	0.040	-16%	3,490,838	$26,923,915
PL3	Patagonia Lithium	0.080	-16%	11,000	$6,213,071
VRC	Volt Resources Ltd	0.003	-14%	50,000	$14,555,373
CSS	Clean Seas Ltd	0.130	-13%	96,906	$30,196,992
RKT	Rocketdna Ltd.	0.013	-13%	148,018	$12,717,814
CXM	Centrex Limited	0.020	-13%	5,858,565	$19,924,119
AQX	Alice Queen Ltd	0.007	-13%	20,097	$9,175,121
AVE	Avecho Biotech Ltd	0.004	-13%	26,147	$12,677,188
BCK	Brockman Mining Ltd	0.014	-13%	166,837	$148,483,714

IN CASE YOU MISSED IT

Octava Minerals (ASX:OCT) has reached an agreement with Global Lithium (ASX:GL1) to sell its Talga project in WA’s Pilbara – for $200,000 cash, and $200,000 worth of GL1 ordinary shares.

The transaction makes sense. Global Lithium holds a large tenement adjoining the Talga project, which includes the Archer lithium resource (18Mt at 1% Li2O) and is also prospective for gold and base metals.

OCT managing director Bevan Wakelam says the deal allows the company to focus on its high-grade Yallanlong antimony project and Byro rare earth project in WA, with drilling underway.

At Stockhead, we tell it like it is. While Octava Minerals is a Stockhead advertiser, it did not sponsor this article.

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