• Aussie shares rebound slightly after GDP data
  • RBA rate cut talk grows amid weak growth
  • Rio Tinto and Sumitomo ink $615m copper deal

 

Aussie shares were down by about 0.4% on Wednesday, after falling as much as 0.8% earlier in the day.

The slight rebound came after the ABS released data showing Australia’s GDP grew just 0.3% in the September quarter, with annual growth dropping to 0.8% – the weakest since the 1990s recession (excluding the Covid period).

Some experts now suggest the Reserve Bank may have to consider cutting interest rates sooner to support growth. 

But, inflation remains high, which makes the decision a tough one for the central bank.

“If you’re the RBA and the case to cut isn’t compelling, you’d probably wait for cleaner data and more data,” said Su-Lin Ong at Royal Bank of Canada.

On the ASX today, shares were mainly dragged down by a sell-off in property and utilities stocks.

 

Source: Market Index

 

Source: Market Index

 

A notable announcement from the large 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%.

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.

Also read > Health Check: Pro Medicus founders cashed up for the holiday season

Meanwhile, the Commonwealth Bank (ASX:CBA) has appointed Luke Yeaman as its new chief economist, replacing Stephen Halmarick. Yeaman, previously a senior Treasury official, brings lots of experience in economic forecasting and global policy.

Regionally, most Asian stock markets fell on Wednesday amid political turmoil in South Korea triggered by a brief martial law declaration by President Yoon.

South Korea’s Kospi Index dropped around 2%, while broader Asian markets, including Japan and China, also saw losses. 

 

ASX SMALL CAP LEADERS

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AusQuest (ASX:AQD) is set to begin its maiden RC drilling program at the Cangallo porphyry copper project in southern Peru in mid-December. The program will test a large, undrilled copper target with drilling expected to last 3-4 weeks, followed by assay results in January 2025. AQD said the project has shown promising copper and gold values.

Petratherm (ASX:PTR) assays from maiden drilling at the Rosewood prospect within its Muckanippie project in South Australia have returned bonanza heavy mineral sands concentrations, with assays still pending from a further 45 drill holes.

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) is making the most of an active land rush in the American Midwest, acquiring a natural hydrogen exploration project from Serpentine Energy in Kansas. The company is also bringing on board Serpentine’s founder, Luke Velterop, and has completed a $6 million raise to accelerate its exploration.

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 LAGGARDS

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IN CASE YOU MISSED IT

Axel REE (ASX:AXL) has confirmed continuous, widespread, and high-grade rare earth element mineralisation through channel sampling across its Caladão project in Brazil’s Minas Gerais state. The company reported that magnet rare earth oxides make up, on average, 32% of the total rare earth oxide content across the 8km of sampling.

Prodigy Gold (ASX:PRX) has lodged a mineral lease application for the 407,000oz Hyperion gold deposit, moving the project closer to development-ready status. The application covers 19.8km² in the Tanami region of the Northern Territory, hosting Newmont’s 20Moz Callie mine.

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 Axel REE, Top End Energy, Prodigy Gold, Petratherm and Octava Minerals are Stockhead advertisers, they did not sponsor this article.

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

 

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