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News
- ASX follows Wall Street to red place, down 1.2pc
- All sectors lower
- Athena Resources adds Welborn and 100pc
Local stocks have been hit by the bad mood and subsequent volatility on Wall Street overnight.
At a few minutes after midday in Sydney, the S&P/ASX200 was lower, dropping 94.90 points or 1.19% to 7,868.80.
Local market losses have been fast and board based.
All 11 ASX sectors are lower. Energy is today’s best performing sector and it’s down more than 5.5% over the past five days.
Worst of the biggies are Regis Resources (ASX:RRL) and Block Inc (ASX:SQ2), down 7.7% and 6.2%.
Also hurting is Fortescue (ASX:FMG) which dropped 4.4% at the outset after missing production guidance, despite shipping a record 53.7 million tonnes of iron ore out of Iron Bridge.
The results come as FMG plans to shed some 700 jobs from its failed green hydrogen ambitions.
Seek (ASX:SEK) stock has fallen, too, after the jobs market revealed a stonking $141m impairment from its stake in Chinese job board Zhaopin.
At lunchtime on Thursday the benchmark index was more than 2% over the past five sessions.
Here’s a heat map.
I love a good heat map. This is not a good heat map.
In small cap digger action, we’re watching Alto Metals (ASX:AME) after it received approval for new mining leases covering the Bull Oak and Indomitable Camps at Sandstone.
“These camps contain significant mineral resources, with Indomitable hosting 210,000 ounces of gold and Bull Oak holding 65,000 ounces.”
Argent Minerals (ASX:ARD) says it’s significantly increased the silver content at the Kempfield Silver Deposit in Australia to 65.8 million ounces, up 54% from 42.8 million ounces. This makes Kempfield the second-largest undeveloped silver deposit in Australia, apparently.
The deposit also holds 125,192 ounces of gold, 207,402 tonnes of lead, and 420,373 tonnes of zinc.
Lefroy Exploration (ASX:LEX) is launching an air core drilling initiative across its Lefroy Project, situated 35 kilometers southeast of Kalgoorlie. This program aims to explore a 40-kilometer stretch along the Mt Monger and Talcum Faults corridor, known for hosting significant gold deposits like Mt Martin, Salt Creek, and Burns, yet remains largely unexplored.
Perpetual Resources (ASX:PEC) has reported promising initial assay results from its Raptor REE Project, showing high grades of Total Rare Earth Oxides (TREO) exceeding 4,500 ppm in surface samples of outcropping saprolite.
Ongoing exploration efforts, including additional surface sampling and deeper auger drilling, are expected to further delineate the project’s mineralization.
Black Cat Syndicate (ASX:BC8) has updated on operations at its Paulsens Gold Operation. Exploration efforts continue to uncover promising high-grade gold intercepts, including notable results like 1.10 meters at 163.91 grams per tonne of gold and 1.84 meters at 75.55 grams per tonne of gold. These discoveries support ongoing mapping, sampling, and preparation of mining areas not covered in the recent study.
The project holds multiple opportunities for further exploration, particularly in areas with developed high-grade veins that require additional drilling to establish resource estimates.
Wall Street got whacked by a perfect storm of worries on Wednesday in New York. Markets took acute hits as tech earnings disappointed.
The Nasdaq crashed 3.64% to close at 17,324.41. A shocker.
The S&P500 also suffered its worst slip up since 2022, down 2.3% to 5,427.
The Dow fell 1%, and the Russell 2000 lost 1.5%.
After feasting on Mega Tech, traders with high expectations at the start of a rotation just cut and run.
Tesla dropped 12.3% and Alphabet 5%.
Other big tech names also had a bad day, with Nvidia down 5%, Meta -6%, and Microsoft falling 3.6%. The growth trajectory of these stocks, while still positive, is not as high as required to maintain current prices.
In aftermarket corproate news, Ford was down 11% following issues with its EV rollout.
Bank of America delivered an increase in dividends and flagged an equity buyback.
Chipotle dropped better-than-expected numbers and green lit its own expansion plan. The stock was up 9% last this one looked.
In stateside macro developments, the PMI manufacturing came in at a weaker-than-expected reading of 49.5%, indicating contraction territory.
At midday AEST, thusly were US Futures:
Here are the best performing ASX small cap stocks for 25 July [intraday]:
Swipe or scroll to reveal full table. Click headings to sort:
Code Name Price % Change Volume Market Cap AHN Athena Resources 0.004 100% 19,485,745 $2,140,935 RMX Red Mount Min Ltd 0.002 50% 1,957,972 $3,423,577 PR1 Pureresourceslimited 0.125 45% 4,663,793 $3,225,001 SEN Senetas Corporation 0.018 38% 11,533,354 $20,426,684 AAU Antilles Gold Ltd 0.004 33% 850,000 $4,384,283 MEL Metgasco Ltd 0.005 25% 100,000 $5,790,347 VRC Volt Resources Ltd 0.005 25% 270,320 $16,634,713 CLU Cluey Ltd 0.042 20% 747,498 $7,056,475 NRZ Neurizer Ltd 0.006 20% 9,953,534 $9,512,153 SMS Starmineralslimited 0.034 17% 246,805 $2,746,961 ARV Artemis Resources 0.011 17% 147,189 $17,251,942 IS3 I Synergy Group Ltd 0.007 17% 166,830 $2,137,307 MRQ Mrg Metals Limited 0.004 17% 1,368,133 $8,134,556 OLI Oliver'S Real Food 0.014 17% 10,086 $5,288,783 SLZ Sultan Resources Ltd 0.007 17% 16,864 $1,185,519 QHL Quickstep Holdings 0.395 16% 424,752 $24,386,913 ASP Aspermont Limited 0.008 14% 4,000,000 $17,500,081 PWN Parkway Corp Ltd 0.008 14% 121,000 $19,369,797 NFL Norfolkmetalslimited 0.125 14% 800 $4,500,753 ATV Activeportgroupltd 0.062 13% 251,465 $17,486,784 GLL Galilee Energy Ltd 0.027 13% 266,307 $8,153,871 SGA Sarytogan 0.180 13% 48,028 $23,797,332 ADG Adelong Gold Limited 0.005 13% 2,001,952 $4,471,956 ATH Alterity Therap Ltd 0.005 13% 124,600 $21,281,344 POS Poseidon Nick Ltd 0.005 13% 1,133,806 $14,854,139
Exciting rejig at Athena Resources (ASX:AHN) where they’ve appointed a new non-executive chair in the formidable shape of ex-Wallaby hard man and resources guru John Welborn.
Garry Plowright as Non-Executive Director of Athena Resources with immediate effect. Mr Ed Edwards and Mr Hau Wan Wai have today resigned as directors of the company. Mr Peter Newcomb and Mr Terry Weston remain on the Board of Athena.
The appointments follow the approval by shareholders of a $1 million Convertible Notes issue to Fenix Resources (ASX:FEX) where Welborn has traction.
Should the notes get coverted then Athena’s stake in AHN will top 30%.
Why?
Athena wants to “leverage Fenix’s capabilities and experience to advance the Byro Magnetite Project and drive value for shareholders.”
Fenix does boast a track record of unlocking value from stranded WA resource projects in the spot where Athena’s Byro Magnetite Project is located.
Fenix also owns Newhaul, a transport logistics business with state-of-the-art road haulage logistics business, rail sidings, and extensive on-wharf storage and loading infrastructure at Geraldton Port.
“The Board intends to immediately commence a comprehensive review of the Company’s operations, strategy and funding arrangements. This review will consider a restructure of the Company and the appointment of a new Chief Executive Officer who will be tasked with advancing a focused strategy for the exploration and development of the Byro Magnetite Project and the creation of shareholder value.”
Cluey (ASX:CLU) is making moves on Thursday: raising capital and expecting to hit profitability in CY2026.
The edutech says its re-scaling ‘to achieve expected profitability is complete,’ after the implementation of a bunch of cost saving initiatives resulting ‘in a significant improvement in Group Cash Burn.’
“Subject to achieving ongoing operating improvements, the Company expects to break-even during H2 FY25 and to be profitable thereafter.”
The bottom line looks tight – in Q4 Customer Acquisition costs (CAC) were cleft in twain to $115 vs $254 for Q423, taking CAC to its
lowest level since inception.
Student numbers are rising again.
“Given the significant improvement in key operating metrics, the company is now well-positioned to grow student numbers and revenues at a sustainable pace. This shift to growth has commenced, with forward booked student sessions in the Cluey Learning division increasing MoM in Q4 FY24, with further increases in the forward order book during July.
Finally, CLU says it is looking to raise $4.5m to fund working capital and rollout of growth initiatives via a fully underwritten 3 for 4 non-renounceable entitlement offer of new Cluey shares at an offer price of $0.03 per new share, representing :a 15.25% discount on the 30-day volume weighted average price (WAP) of Cluey shares, including ~$1.65m firm in relief and sub-underwrite from management and founders.
Also up nicely on Thursday is the wee explorer Pure Resources (ASX:PR1), which has entered into a binding option agreement to acquire the Reedy Creek Project located 90 kms north of Halls Creek, Western Australia.
The project is a hard-rock, high-grade, outcropping industrial garnet deposit and consists of a live mining lease M80/416 that covers an area of 359.60 ha and has been granted until 2038.
Picking up where it left Tuesday is Delorean (ASX:DEL) – a vertically integrated bio-energy focused operator of both renewable energy and waste management.
The company lifted FY24 earnings guidance, saying its strong results are largely thanks to high performing project delivery across the group.
A refresher:
• EBITDA of between $4.5m and $5.1mn
• Revenue for the year of between $27m and $28mn
• A record NPAT for the full year
• Cash at Bank as at 30 June 2024 of $8.8m
And building on Wednesday gains is Galilee Energy (ASX:GLL) – one last time:
Here are the most-worst performing ASX small cap stocks for 25 July [intraday]:
Swipe or scroll to reveal full table. Click headings to sort:
Code Name Price % Change Volume Market Cap 88E 88 Energy Ltd 0.002 -33% 5,147,538 $86,678,016 M2R Miramar 0.007 -30% 19,483,971 $1,973,898 DOU Douugh Limited 0.003 -25% 6,000 $4,328,276 HCT Holista CollTech Ltd 0.007 -22% 1,533 $2,509,201 NUC Nuchev Limited 0.160 -20% 20,000 $29,267,861 EFE Eastern Resources 0.004 -20% 600,000 $6,209,732 LPD Lepidico Ltd 0.002 -20% 3,513,367 $21,472,812 ROG Red Sky Energy. 0.004 -20% 1,548,964 $27,111,136 SIS Simble Solutions 0.004 -20% 1,256,103 $3,767,254 PIL Peppermint Inv Ltd 0.009 -18% 23,158,735 $23,334,942 AVE Avecho Biotech Ltd 0.003 -17% 10,000 $9,507,891 BNL Blue Star Helium Ltd 0.005 -17% 2,362,014 $11,669,312 AGY Argosy Minerals Ltd 0.042 -14% 12,071,543 $71,340,126 RFT Rectifier Technolog 0.006 -14% 540,001 $9,673,888 TIG Tigers Realm Coal 0.003 -14% 30,035 $45,733,458 VML Vital Metals Limited 0.003 -14% 4,235,250 $20,632,734 EVS Envirosuite Ltd 0.050 -14% 1,405,898 $73,559,788 SBW Shekel Brainweigh 0.050 -14% 50,000 $12,225,573 AZ9 Asianbatterymet PLC 0.026 -13% 1,257,624 $9,066,449 CTQ Careteq Limited 0.013 -13% 400,000 $3,556,781 CSX Cleanspace Holdings 0.410 -13% 15,505 $36,367,891 IMI Infinitymining 0.014 -13% 326,106 $1,900,054 LU7 Lithium Universe Ltd 0.014 -13% 259,730 $9,502,617 MEM Memphasys Ltd 0.007 -13% 395,334 $11,061,985
PharmAust (ASX:PAA) has wrapped up a share purchase plan following the raise of $7.8m, far exceeding its initial target of $2m and bolstering its balance sheet after a $10m placement in June.
European Lithium (ASX:EUR) has increased its exposure to the giant Tanbreez rare earths deposit in Greenland after Critical Minerals Corp acquired an additional 36.45% interest through an issue of 8.4 million shares.
At Stockhead, we tell it like it is. While PharmAust and European Lithium are Stockhead advertisers, they did not sponsor this article.
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