Closing Bell: ASX returns to cruising altitude on resources recovery
Flat finish … but defensive sectors and a rally in some choice resources stocks saw the ASX land okay today. Pic: Getty Images
- ASX bounces off lows of -0.5pc to add two points
- Energy, defensive sectors and resources fuel gains
- Gold back in favour, even as prices remain subdued
Resources stocks fuel recovery
The ASX was cruising for a bruising today, down 0.5% by 11am AEDT.
A rotation back into gold stocks as investors snap up dip bargains had the market adjusting course by midday, gaining altitude on momentum in the defensive sectors of utilities, consumer staples and real estate.
By end of trade, the ASX200 had wobbled its way back into positive territory, adding just under two points or 0.03%.
The energy sector continued to lead gains, but the ASX 200 resources also staged a recovery.
A handful of gold companies including Felix Gold (ASX:FXG) and Meteoric Resources (ASX:MEI) were in favour, adding 9.68% and 6.98% respectively.
The larger goldies – GGP, GMD, NST, EVN, VAU, NEM – also added between 0.9% and 2.88%.
Rare earths are also still making gains, with Arafura (ASX:ARU), for example, jumping 12% today.
Lithium had a look in, too, with European Lithium (ASX:EUR) adding 8%, while copper stock Bougainville (ASX:BOC) climbed 9.43%.
Woodside Energy (ASX:WDS) powered up 4.32% on recovering crude prices, while Ampol (ASX:ALD) made similar moves, adding 4.07%.
Tech wins move the market needle
Leaving resources behind, there was strong movement in the tech side of industrials and utilities.
Landfill biogas recovery specialist LGI (ASX:LGI) gained 9.09% after closing out a massive $51.2m placement and launching a $5m share purchase plan.
LGI is doubling down on its Mugga Lane, Belrose and Nowra sites with the cash top up, looking at power station expansion and grid-scale battery opportunities.
Silex System (ASX:SLX) nabbed a third-party validation of its SILEX laser-based uranium enrichment technology from a leading Fortune 1000 technology provider.
SLX is trading up 8.91% on the tick of approval. Management says the “TRL-6” validation is the first of its kind for a large-scale, third-generation laser-based enrichment technology.
On the other side of the balance sheet, Super Retail (ASX:SUL) delivered an underwhelming financial year update.
Sales on like-for-like products were up 2.6% year-on-year and total sales 4.5% but Macquarie’s prediction gross profit margins would rise 0.4% didn’t materialise.
As always, close enough isn’t good enough. SUL shares shed 3.53% by end of trade.
ASX Leaders
Today’s best performing stocks (including small caps):
| Code | Name | Last | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| VBS | Vectus Biosystems | 0.135 | 82% | 76557 | $3,946,666 |
| EEL | Enrg Elements Ltd | 0.0015 | 50% | 886805 | $3,253,779 |
| MTL | Mantle Minerals Ltd | 0.0015 | 50% | 861539 | $7,233,115 |
| SRN | Surefire Rescs NL | 0.003 | 50% | 339116 | $8,051,219 |
| THR | Thor Energy PLC | 0.0185 | 42% | 60932757 | $9,377,044 |
| BMG | BMG Resources Ltd | 0.018 | 38% | 15582661 | $12,004,163 |
| NYR | Nyrada Inc. | 0.44 | 35% | 3399569 | $77,675,120 |
| FCT | Firstwave Cloud Tech | 0.016 | 33% | 15205459 | $22,790,424 |
| MEM | Memphasys Ltd | 0.004 | 33% | 130000 | $6,723,294 |
| TMS | Tennant Minerals Ltd | 0.009 | 29% | 1396041 | $7,461,233 |
| ELT | Elementos Limited | 0.285 | 27% | 534545 | $66,396,175 |
| DTZ | Dotz Nano Ltd | 0.062 | 27% | 2792050 | $31,570,761 |
| NWM | Norwest Minerals | 0.015 | 25% | 7894007 | $12,361,283 |
| AQX | Alice Queen Ltd | 0.005 | 25% | 198009 | $5,538,785 |
| BP8 | Bph Global Ltd | 0.0025 | 25% | 661101 | $2,599,469 |
| MMR | Mec Resources | 0.005 | 25% | 870593 | $7,487,959 |
| RKB | Rokeby Resources Ltd | 0.005 | 25% | 3280992 | $7,306,245 |
| PAB | Patrys Limited | 0.037 | 23% | 1402074 | $10,221,859 |
| FMR | FMR Resources Ltd | 0.39 | 22% | 710042 | $15,362,156 |
| WYX | Western Yilgarn NL | 0.075 | 21% | 3900460 | $9,754,197 |
| ATS | Australis Oil & Gas | 0.012 | 20% | 455967 | $13,231,866 |
| SPQ | Superior Resources | 0.012 | 20% | 1882366 | $23,739,827 |
| GLA | Gladiator Resources | 0.037 | 19% | 6299831 | $25,229,424 |
| VRX | VRX Silica Ltd | 0.105 | 19% | 2924502 | $65,987,039 |
| C1X | Cosmosexploration | 0.07 | 19% | 648758 | $6,399,530 |
In the news…
Thor Energy (ASX:THR) is collaborating with DISA Technologies to treat abandoned uranium mine waste dumps with the goal of recovering saleable uranium and other critical minerals.
DISA just nabbed the very first licence from the US Nuclear Regulatory Commission to remediate abandoned uranium mine waste, so THR is keen to get to work on the waste dumps on its own claims.
DISA will foot the bill and handle the operational side of things, while THR’s subsidiary takes home 2.5-4% of the gross sales.
BMG Resources (ASX:BMG) has welcomed GBA Capital executive director Flynn Huang as a substantial shareholder after he snapped up almost 49 million shares, taking ownership of 5.29% of the company.
BMG recently hit fresh new gold lodes in drilling at its Bullabulling project in WA, striking up to 1m at 15.8g/t gold from 78m and 2m at 4.3g/t gold from 75m.
Norwest Minerals (ASX:NWM) updated investors on its two-pronged development approach today, targeting both gold and critical minerals. The Bulgera gold project in WA is NWM’s current focus, home to a 288,000-ounce resource.
The company is reviewing Bulgara in the context of historically high gold price, reassessing the project’s studies – they’ll be available by the end of October. Check out Stockhead’s StockTake on the update here.
ASX Laggards
Today’s worst performing stocks (including small caps):
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| RAN | Range International | 0.0035 | -30% | 550000 | $5,396,452 |
| AUK | Aumake Limited | 0.003 | -25% | 4287691 | $12,093,435 |
| PLCR | Premier1 Lithium Ltd | 0.0015 | -25% | 75000 | $736,121 |
| BIT | Biotron Limited | 0.0035 | -22% | 27098538 | $5,972,606 |
| CTN | Catalina Resources | 0.004 | -20% | 4245426 | $12,205,095 |
| GGE | Grand Gulf Energy | 0.002 | -20% | 201961 | $7,051,062 |
| PIL | Peppermint Inv Ltd | 0.004 | -20% | 398879 | $12,545,104 |
| RFT | Rectifier Technolog | 0.004 | -20% | 717157 | $6,909,920 |
| NYM | Narryermetalslimited | 0.036 | -18% | 210370 | $7,746,411 |
| RML | Resolution Minerals | 0.082 | -18% | 95201057 | $179,818,188 |
| COB | Cobalt Blue Ltd | 0.1725 | -18% | 5201496 | $104,503,085 |
| CLA | Celsius Resource Ltd | 0.01 | -17% | 12021787 | $37,625,861 |
| OVT | Ovanti Limited | 0.005 | -17% | 11493308 | $33,094,738 |
| TYX | Tyranna Res Ltd | 0.005 | -17% | 25377336 | $20,052,929 |
| CAE | Cannindah Resources | 0.057 | -16% | 1195917 | $70,138,369 |
| SNS | Sensen Networks Ltd | 0.105 | -16% | 1924350 | $99,941,372 |
| LMS | Litchfield Minerals | 0.585 | -16% | 1031042 | $31,082,874 |
| LPM | Lithium Plus | 0.12 | -14% | 419039 | $18,597,600 |
| T3D | 333D Limited | 0.069 | -14% | 586545 | $16,121,638 |
| YUG | Yugo Metals Ltd | 0.054 | -13% | 2916958 | $14,726,171 |
| LCL | LCL Resources Ltd | 0.007 | -13% | 59 | $9,594,057 |
| PET | Phoslock Env Tec Ltd | 0.007 | -13% | 3974313 | $4,995,124 |
| SPX | Spenda Limited | 0.0035 | -13% | 3190896 | $18,910,862 |
| ADG | Adelong Gold Limited | 0.0105 | -13% | 47674365 | $30,802,036 |
| AXP | AXP Energy Ltd | 0.021 | -13% | 237446 | $9,009,305 |
In Case You Missed It
Theta Gold Mines (ASX:TGM) has begun bulk and civil earthworks at the TGME project in South Africa, moving closer to production.
Adavale Resources (ASX:ADD) has received native title approvals from both the Adnyamathanha and Dieri communities for its planned exploration at the Marree uranium project in South Australia.
Verity Resources (ASX:VRL) has returned strong results including up to 38g/t from resource upgrade drilling at its Monument gold project in WA.
Norwest Minerals (ASX:NWM) is charging ahead on multiple fronts, chasing gold at Bulgera and critical minerals in the West Arunta.
Astral Resources (ASX:AAR) says in-fill drilling at the Theia deposit of its Mandilla project in WA has continued to deliver broad zones of high-grade gold mineralisation.
Miramar Resources (ASX:M2R) has received a $250,000 refund to cover part of its magnetic and VTEM survey at the Bangemall polymetallic project.
White Cliff Minerals’ (ASX:WCN) discovery of a second copper system at Rae confirms the project’s potential to host multiple, large-scale, high-grade deposits.
DY6 Metals (ASX:DY6) has moved to assess value pathways for its Malawi portfolio after receiving unsolicited approaches from parties seeking REE opportunities.
Ora Banda (ASX:OBM) says its latest drilling has flagged more high-grade gold assays as it looks to expand and grow the Davyhurst project.
Last Orders
Maronan Metals (ASX:MMA) has resumed drilling at its namesake project in Queensland, marking the start of a definitive feasibility study. MMA intends to develop the Maronan discovery into a gold mine, beginning with a shallow starter zone.
Trading halts
Australian Oil Company (ASX:AOK) – cap raise
Cann Group (ASX:CAN) – debt restructure and cap raise
Challenger Gold (ASX:CEL) – cap raise
Coda Minerals (ASX:COD) – cap raise
Northern Minerals (ASX:NTU) – cap raise
Scorpion Minerals (ASX:SCN) – assay results and partnership update
Tamboran Resources (ASX:TBN) – cap raise
At Stockhead, we tell it like it is. While Maronan Metals and Norwest 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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