ASX Small Cap Lunch Wrap: Who’s having trouble with supply chains today?
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It looks like Brexit and a lack of truck drivers in the UK are having an impact on all kinds of supply chains – even MDMA.
“[The shortage] could certainly be a result of the reduction of HGVs carrying goods in from Europe, where illegal goods would usually be concealed amongst legal products,” Release executive director Niamh Eastwood said.
Apparently MDMA producers in the Netherlands probably won’t see the UK as profitable enough until festival and clubs return at their usual scale – and even then the supply chain issues remain.
“Like many other goods that are imported into the UK, we are seeing the supply chain for some illicit substances affected, although as this is an unregulated market it is hard to pin it down,” Eastwood said.
In the meantime, illicit drug suppliers are prioritising more lucrative drugs like cocaine and heroin.
In a heavy start to the week, the ASX 200 was down 51.20 points or 0.69% at midday today to 7,471.20.
Financials, energy and healthcare sectors lead declines while only IT is improving.
Global oil markets fell up to 1% on Friday, with the weaker-than-expected US jobs report raised doubts about the economic recovery, and therefore demand for oil.
Around 93% of daily crude output in the Gulf of Mexico remains suspended due to the ongoing impacts from Hurricane Ida.
Iron ore rose by US$5.35 a tonne or 3.8% to US$145.05 a tonne, with Fortescue Metals (ASX:FMG) down 8.6% in early trade as it trades ex-dividend today for its $2.11/share final dividend.
This is double last year’s payment, is its largest payment ever and is ~10% of its share price.
The gold futures price rose by US$22.20 an ounce or 1.2% to U$1,833.70 an ounce on Friday, with spot gold trading near US$1,826 an ounce.
Here are the best performing ASX small cap stocks for September 6 [intraday]:
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The biggest small cap winner today was Classic Minerals (ASX:CLZ) up 50% on no news.
Then there was Eastern Iron (ASX:EFE) up 31% off the back of non-binding memorandum of understanding (MOU) with Ya Hua International Investment and Development Co. Ltd (Yahua) to acquire and develop lithium projects.
The companies will establish a joint venture, and will work together to develop the Trigg Hill lithium tanalum project in Western Australia – once acquired.
Plus, Yahua will have first right of refusal for product offtake from any of the JV projects including the Trigg Hill Project.
And Pan Asia Metals (ASX:PAM) also rose 31% after announcing it completed a $6 million placement and plans to offer a share purchase plan to shareholders to raise a further $2 million.
The company will use the funds to complete infill and extensional drilling and continue technical and economic studies as part of its plans to deliver maiden mineral resource and scoping study at the Reung Kiet lithium project.
Funds will also be used to begin initial exploration at the Kata Thong geothermal lithium and hard rock lithium project.
The biggest loser today was Oakridge (ASX:OAK) down 33% on no news.
Pursuit Minerals (ASX:PUR) dropped 20% after releasing a progress update for its diamond drilling program at the Phil’s Hill prospect – which is within the known range of conductance for the Gonneville PGE-nickel-copper discovery.
The company has paused drilling to conduct down-hole EM (DHEM) surveys to determine the orientation of the conductive plates in order to re-focus the ongoing drilling program.
And Victory Mines (ASX:VIC) was also down 20% on no news.