Closing Bell: ASX gives up gains to break even as resources offer strong support
The ASX Resources sector held up the rest of the market again today as investors studiously ignored the ongoing US government shut down. Pic: Getty Images
- ASX flirts with record highs before sliding six points
- Strength in resources sector limits losses
- Broad weakness with 6 of 11 sectors lower
Commodities drive resources strength
The ASX Materials sector was a bright spot among a fizzer of an end to the trading day, adding 0.62% on multi-commodity strength.
Globally, investors seem content to wait and see what the results of the US government shutdown will be rather than reacting too emotionally.
TACO may win out after all. Nothing to see here in the meantime.
The ASX 200 lifted 0.3% to peek over the 9000-point ceiling this morning before giving up its momentum to slide 0.07%.
There were some big commodity gains on Friday night that set the stage for some similar gains among resource stocks today.
But, with six of 11 sectors moving lower, the ASX 200 turned its back on a new record high for a flat finish.
The ASX 200 Resources (XJR) was one of two indices to make any progress in today’s session, alongside a bigger gain in the golden XGD.
Mine incidents pump copper prices
Copper prices jumped 3.3% last Friday, having soared 7.2% over the week.
The price hikes are partially due to two incidents at major international copper mines.
In Indonesia, a mud-flow incident killed seven workers at the Grasberg copper and gold mine. The mine is also closed due to damage from the natural disaster.
A few months ago, Chile experienced its own tragedy when a collapse in the El Teniente mine also killed seven workers. Together, the two incidents are applying pressure to global copper supplies.
Today, our copper stocks jetted higher in response to rising prices.
29Metals (ASX:29M) added 4.63% while Sandfire Resources (ASX:SFR) gained 3.95%.
Their smaller cousin Aeris Resources (ASX:AIS) jumped 7.29% by end of day.
Gold prices continued to set records. Futures pushed to a new high on Friday and have outstripped that by more than 1% today to hover at US$3950.95 an ounce.
Predictive Discovery (ASX:PDI) gained 9.55%, Focus Minerals (ASX:FML) 13.92% and Barton Gold (ASX:BGD) 10.34%.
PDI is merging with Canadian gold company Robex Resources. Together, they expect to produce more than 400,000 ounces of gold a year by the time their projects come online in 2029.
Rounding out our resources winners, rare earths were also in favour on the ASX today.
Arafura Rare Earths (ASX:ARU) added 9.3%, Lynas (ASX:LYC) 7.75%, and Brazilian Rare Earths (ASX:BRE) 11.18%.
Oil rises as OPEC+ agrees on small production increase
After falling about 8% last week oil prices have recovered somewhat, adding 1.43% after OPEC+ lifted production by significantly less than markets expected.
Brent crude is now trading at US$65.45 a barrel after OPEC+ agreed to lift production targets by just 137,000 barrels a day in November.
Reportedly, Russia argued for the lower amount to avoid weakening oil prices even further, while Saudi Arabia was pushing for 3-4x larger production hikes in a bid to regain market share.
Russia has a direct interest in restricting cheap oil inflows to Europe in particular, as it attempts to use its oil and gas exports to influence the Bloc’s response to the war in Ukraine.
For all the noise, OPEC+ producers are yet to meet their production targets for the May to September period, having restored only about 60% of the volumes promised.
That may indicate some producers are already at capacity.
In Eastern Europe specifically, it may also have something to do with a continued and concentrated campaign of drone and air strikes by Ukraine on Russian crude infrastructure.
With oil prices recovering marginally, Woodside Energy (ASX:WDS) added 0.96% and Origin Energy (ASX:ORG) gained 1.14%.
As long-range drone strike on vital infrastructure become the norm, Droneshield (ASX:DRO) is also continuing its bull run, up 10.56% today and 372% for the last year.
ASX Leaders
Today’s best performing stocks (including small caps):
| Code | Name | Last | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| EQS | Equitystorygroupltd | 0.028 | 180% | 4199770 | $1,768,479 |
| EUR | European Lithium Ltd | 0.25 | 127% | 82958782 | $159,137,114 |
| COB | Cobalt Blue Ltd | 0.125 | 58% | 12945588 | $39,067,744 |
| BM8 | Battery Age Minerals | 0.15 | 53% | 10150513 | $17,825,399 |
| TD1 | Tali Digital Limited | 0.0015 | 50% | 100000 | $4,672,682 |
| 14D | 1414 Degrees Limited | 0.045 | 41% | 4650883 | $10,476,241 |
| LU7 | Lithium Universe Ltd | 0.018 | 38% | 46298897 | $18,810,735 |
| PRS | Prospech Limited | 0.022 | 38% | 475856 | $8,376,190 |
| QUE | Queste Communication | 0.055 | 38% | 79095 | $1,082,893 |
| LM1 | Leeuwin Metals Ltd | 0.26 | 37% | 1764535 | $19,153,213 |
| ASP | Aspermont Limited | 0.008 | 33% | 40000 | $15,842,955 |
| MRD | Mount Ridley Mines | 0.004 | 33% | 330000 | $2,972,151 |
| ENR | Encounter Resources | 0.6 | 29% | 4117854 | $232,696,378 |
| BBL | Brisbane Broncos | 1.675 | 27% | 93546 | $129,413,633 |
| MAG | Magmatic Resrce Ltd | 0.071 | 27% | 4047227 | $25,370,840 |
| IG6 | Internationalgraphit | 0.083 | 26% | 4592000 | $12,974,530 |
| CUF | Cufe Ltd | 0.015 | 25% | 17343958 | $16,158,898 |
| T3D | 333D Limited | 0.15 | 25% | 1876514 | $23,862,457 |
| ERA | Energy Resources | 0.0025 | 25% | 2050172 | $810,792,482 |
| FBR | FBR Ltd | 0.005 | 25% | 43238048 | $26,207,891 |
| FHS | Freehill Mining Ltd. | 0.005 | 25% | 447911 | $13,655,414 |
| NES | Nelson Resources. | 0.01 | 25% | 55219760 | $17,375,421 |
| PIL | Peppermint Inv Ltd | 0.0025 | 25% | 645000 | $5,018,042 |
| VRC | Volt Resources Ltd | 0.005 | 25% | 2544285 | $18,739,398 |
| DAL | Dalaroometalsltd | 0.056 | 24% | 2116536 | $13,353,837 |
In the news…
European Lithium (ASX:EUR) continued to rise after announcing it was buying back up to 135 million of its shares on-market last Friday, representing about 10% of its total shares on issue.
Chair Tony Sage said the board believed EUR’s share price was a poor reflection of the company’s value, pointing out the value of its holding in Critical Metals Corp, which Sage says was worth $678m at Thursday’s closing price.
Leeuwin Metals (ASX:LM1) has had a glittering start to drilling at the Marda gold project in WA, hitting 4m at 10.68g/t gold from 60m within 9m at 5.23g/t gold.
Management says more than one zone is grading above 5g/t gold in this first-pass program, boding well for the 31 assays still pending as the company works toward a maiden resource for the project.
Lithium Universe (ASX:LU7) has had another breakthrough in its solar panel recycling technology, improving silver recovery with a new electrode tip design.
LU7 is developing its Electro-Jet recycling platform in partnership with Macquarie University, with the end goal of increasing metal recoveries, preserving materials and making solar panel recycling commercially viable.
Encounter Resources (ASX:ENR) hit broad, high-grade niobium in drilling at the Aileron project’s Green prospect, including 85m at 3.1% niobium within 124m at 2.4% niobium from 45m.
Just last month the company discovered the Green carbonatite complex stretches another 1.5km to the east, offering up a tasty niobium-rare earth target for future exploration.
ASX Laggards
Today’s worst performing stocks (including small caps):
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| RNX | Renegade Exploration | 0.006 | -37% | 65105408 | $19,494,286 |
| SKN | Skin Elements Ltd | 0.002 | -33% | 2446612 | $3,225,642 |
| PAB | Patrys Limited | 0.0015 | -25% | 600000 | $9,167,513 |
| GES | Genesis Resources | 0.009 | -25% | 743513 | $9,394,096 |
| DME | Dome Gold Mines Ltd | 0.14 | -20% | 4426 | $73,337,479 |
| 1AD | Adalta Limited | 0.002 | -20% | 609999 | $3,650,513 |
| AN1 | Anagenics Limited | 0.004 | -20% | 1100001 | $2,481,602 |
| RDN | Raiden Resources Ltd | 0.004 | -20% | 8957662 | $17,254,457 |
| TOU | Tlou Energy Ltd | 0.016 | -20% | 100082 | $25,971,686 |
| T88 | Taitonresources | 0.1 | -17% | 17930 | $8,934,885 |
| TMK | TMK Energy Limited | 0.0025 | -17% | 4001636 | $35,692,149 |
| TGN | Tungsten Min NL | 0.07 | -16% | 3203420 | $74,572,157 |
| HPC | Thehydration | 0.011 | -15% | 5076629 | $5,600,412 |
| AVE | Avecho Biotech Ltd | 0.006 | -14% | 3007554 | $22,214,246 |
| BLU | Blue Energy Limited | 0.006 | -14% | 1272649 | $14,900,337 |
| IPT | Impact Minerals | 0.006 | -14% | 14460822 | $33,208,694 |
| SKK | Stakk Limited | 0.0515 | -14% | 65001730 | $124,504,781 |
| IRX | Inhalerx Limited | 0.025 | -14% | 108786 | $6,189,998 |
| EXT | Excite Technology | 0.0095 | -14% | 3651017 | $22,799,061 |
| GBZ | GBM Rsources Ltd | 0.055 | -13% | 42852308 | $244,517,612 |
| JAV | Javelin Minerals Ltd | 0.0035 | -13% | 4798487 | $30,280,900 |
| SIS | Simble Solutions | 0.007 | -13% | 11771215 | $8,706,643 |
| EIQ | Echoiq Ltd | 0.18 | -12% | 4023252 | $132,796,481 |
| GT1 | Greentechnology | 0.031 | -11% | 4056043 | $16,630,952 |
| ATV | Activeportgroupltd | 0.039 | -11% | 19568321 | $44,348,282 |
In Case You Missed It
Victory Metals’ (ASX:VTM) latest environmental studies signal success at its North Stanmore heavy rare earths project in Cue, WA.
Caprice Resources (ASX:CRS) has executed a binding agreement with Accelerate Resources to acquire the Comet Exploration project.
Verity Resources (ASX:VRL) is looking to grow its Monument gold project in Western Australia’s Laverton Goldfields with a new diamond drilling campaign.
North American explorer Mammoth Minerals (ASX:M79) has kicked off a maiden diamond drilling program at its Excelsior gold and silver project.
Riversgold (ASX:RGL) has increased the footprint of its Kalgoorlie gold project by 170% with the acquisition of a granted tenement and another pending.
Patronus Resources (ASX:PTN) is zeroing in on multiple large-scale gold targets at Pine Creek after some early exploration success.
Trading halts
Echo IQ (ASX:EIQ) – pending US medical tech approval
Elixir Energy (ASX:EXR) – Diona-1 well results
Globe Metals & Mining (ASX:GBE) – cap raise
Global Uranium and Enrichment (ASX:GUE) – potential acquisition
Kalina Power (ASX:KPO) – 180MW project transfer
Kuniko (ASX:KNI) – cap raise
Maronan Metals (ASX:MMA) – cap raise
OpenLearning (ASX:OLL) – cap raise
Ovanti (ASX:OVT) – cap raise for US BNPL unit
Power Minerals (ASX:PNN) – material acquisition and cap raise
Red Mountain Mining (ASX:RMX) – addition to US critical minerals portfolio
Xstate Resources (ASX:XST) – Diona-1 drill results
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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