• ASX up as gold and energy stocks rally
  • Gold hits record high, boosting miners such as West African Resources
  • Taiwan stock market hit by cyber attack

 

The ASX  pulled back from earlier gains despite a rally from energy and mining stocks. By close of Friday, the ASX 200 had risen 0.3% for the day and gained 1% over the week.

Gold miners were in focus after bullion prices surged to a new record of $US2,568 an ounce overnight. 

Best stocks there today were West African Resources (ASX:WAF), which rose almost 10% and Evolution Mining  (ASX:EVN), which was up 8%.

Gold prices reached a new record high after weak US inflation and unemployment data last night raised expectations of a Fed Reserve rate cut next week.

“We are headed towards a lower interest rate environment so gold is becoming a lot more attractive,” said Alex Ebkarian at Allegiance Gold.

 

Source: MarketIndex

 

Energy stocks were also bid up as crude futures prices jumped 3% due to supply disruptions from Hurricane Francine in the US Gulf of Mexico.

News is that Francine has hit Louisiana in the last few hours, causing significant disruptions to energy infrastructure. 

As of Thursday, more than 450,000 people are without power, while 42% of Gulf oil production and 53% of natural gas production are offline.

Big banks were off the boil today, though, with the four biggest stocks falling close to 1%. 

To stock news, Star casino operator Star Entertainment (ASX:SGP) rose 0.5% after the company  received a ‘show cause’ notice from the New South Wales Independent Casino Commission (NICC) following the Bell Two Report.

The NICC is questioning Star’s suitability for its casino licence and has requested detailed submissions on its remediation actions and financial status.

 

Taiwan hit by cyberattack

In Asia today, Taiwan said its stock exchange and local company Mega Financial Holding were hit by a DDoS attack, briefly disrupting operations this afternoon. 

The attack, believed to be from “foreign agents”, caused connection issues but services are now back to normal. The origin of the attack remains unclear, though a Russian group claimed responsibility.

The Taiwan Stock Exchange was set to close the day 0.5% higher at the time of writing.

Across the region though, Asian stock markets had a mixed day. 

While some benchmarks, such as those in Australia and Hong Kong saw gains, Japanese stocks faced pressure from a stronger yen. 

The yen rose for the fourth day in a row against the US dollar, reflecting the growing hopes for a Fed Reserve rate cut.

Meanwhile, OpenAI has revealed it is launching a new AI model, internally called “Strawberry,” which it says can solve complex math and coding problems.

Starting today, a preview of this model will be available to paid Plus and Team users of ChatGPT.

This comes as OpenAI seeks to raise at least US$5 billion at a US$150 billion valuation, nearly doubling its current worth.

The funding round involves major investors like Apple, Nvidia, Microsoft, and Thrive Capital, with Thrive leading the charge.

 

ASX SMALL CAP LEADERS

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DXN (ASX:DXN) has released its FY24 results, and they’re excellent – the company is reporting that it has achieved a statutory EBITDA of $644,000 –  the first positive EBITDA result in DXN’s history – on FY24 revenue of $10.8 million. Managing Director Shalini Lagrutto says the year has been “transformational”, following the company’s exit from its unprofitable data centre in Sydney.

eMetals (ASX:EMT) has delivered an update to its exploration in Uganda, revealing that a total of 40 soil samples and 77 rock-chip samples were taken on the Bukuya target within the Mubende Gold Project as part of the first phase of field activities. Numerous high-grade rock chip samples were returned including 29.1g/t Au, 9.2g/t Au and 3.1g/t Au, with soil sampling confirmed gold mineralisation extends beyond current artisanal workings and has defined an anomalous zone across a strike of approximately 1,200m which remains open along strike in both directions.

Labyrinth Resources (ASX:LRL) was rising on news that the company has been reviewing the historical Vivien data base in the lead up to the company’s EGM and completion of the Distilled Acquisition. LRL says that the historical data shows “significant exploration upside and underexplored nature of Vivien and Comet Vale”. Both the Comet Vale and Vivien Projects are located close to existing infrastructure and linked via major access ways to the Goldfields, and the existing drilling shows that there is ample untested prospectivity at both projects.

An investor presentation outlining Mithril Silver and Gold (ASX:MTH)’s plan for Copalquin gold and silver project in Mexico (which supplies 25% of the world’s silver) has stirred the share price today.

It’s already shown a maiden resource of 2.41Mt at 4.8g/t gold, 141g/t silver for 373,000oz gold plus 10.9Moz silver (total 529,000 oz gold equivalent), demonstrating the project’s high-grade gold and silver resource potential and is drilling in and around the resource as part of its aim to double it by Q1 2025.

Assays have been received for six holes, a further three have been sent to the laboratory, two completed for logging and six more holes to be drilled in this initial 4000m program.

Earlier, Mount Burgess Mining (ASX:MTB) was climbing on news that local officials have finally let the company to move forward, after the Botswanan Department of Environmental Protection (DEP) confirmed it had approved a Scoping Report and requested a Final EIA be lodged following MTB’s receipt of DEP’s comments. The timeframe to the completion of the EIA review period is estimated to be in the region of four to six weeks, after which MTB should be able to begin infill drilling at its Nxuu Project.

M&A Activity is heating up in WA as Antipa Minerals (ASX:AZY) today agreed to sell its 32% non-controlling interest in the 2.84Moz Citadel gold project JV in the Paterson Province to Rio Tinto (ASX:RIO) for $17m, cashing up the junior to accelerate exploration at its nearby Minyari Dome gold project.

Recent exploration by the junior across Citadel’s Calibre deposit increased tested shallow resource extensions and together with the nearby Magnum deposit, showed very large-scale exploration upside with just 70-80m of predominantly free-digging, post-mineralisation cover.

The results, posted late August, were seemingly impressive enough for Rio to consolidate its 68% share. The cash injection will allow the junior to realise a range of exploration plans for Minyari Dome against a backdrop of moves and shakes in the Paterson region. Rio has spent more than $47m over the years on exploration at Citadel to earn its current 68% interest and the transaction to full ownership is expected to be completed by November.

Drilling continues at Tesoro Gold (ASX:TSO) Ternera prospect at El Zorro as it puts to bed a dispute over a cap raise and claims of work abandonment by minor shareholder Wanaco. A Chilean court rejected attempts by Wanaco to have mining concessions transferred to it as compensation over the allegations and has ordered Wanaco to pay for legal costs.

Diamond drilling is ongoing at the high-priority targets within 1.5 km of the existing Ternera deposit, with rigs currently operating at Ternera East and Ternera. Assay results from 10 completed holes remain outstanding and are expected back by the end of this month.

Rock chips sampled at the Komboro prospect, part of Mako Gold (ASX:MKG)’s flagship Napié project in Côte d’Ivoire, have returned hits of up to an eye-whopping 170g/t gold, while identifying new high-grade gold zones for potential resource growth.

Other very high-grade results including 41.92g/t, 6.27g/t, 4.63g/t, and 3.48g/t gold as part of the junior’s plans to grow Napié’s already impressive 868,000oz resource.

The samples reinforce gold mineralisation from previous shallow drilling at Komboro which returned high-grade gold intercepts of:

  • 9m at 3.26g/t Au from 67m including 3m at 7.29g/t Au from 67m and 1m at 47g/t Au from 86m
  • 1m at 8.45g/t Au from 74m; and
  • 5m at 1.64g/t Au from 56m.

Further mapping and rock chip sampling across the Komboro prospect continues in preparation for a future drilling campaign.

 

ASX SMALL CAP LAGGARDS

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IN CASE YOU MISSED IT

Altech Batteries (ASX:ATC) has received a clear validation of its CERENERGY® sodium-alumina solid-state batteries with the execution of the first letter of intent for the purchase of 30MWh of battery packs per annum for the first five years of production from its planned 120MWh plant in Germany.

Anson Resources (ASX:ASN) has received final approval from the state of Utah to extract 0.54 cubic metres of lithium-rich brines per second from its Green River project for use in direct lithium extraction.

Antipa Minerals (ASX:AZY) is selling its 32% non-controlling interest in the Citadel JV gold-copper project in WA’s Paterson Province to Rio Tinto for $17m in cash, which will be used to fund drilling and development appraisal activities at its wholly-owned Minyari Dome project.

Brightstar Resources (ASX:BTR) has executed a $4m drill for equity agreement with drill contractor Topdrill that will allow it to pay up to 50% of drilling services costs by issuing shares.

Mako Gold (ASX:MKG) has reported rock chip results from the Komboro prospect at its Napié gold project in Côte d’Ivoire of up to a massive 170g/t gold. Previous scout drilling had returned up to 30.47g/t gold.

Perpetual Resources’ (ASX:PEC) maiden drilling has proved the presence of rare earths mineralisation at its Raptor project in Brazil that compares favourably to grades seen at the standout Caldeira project. All holes ended in mineralisation, which suggests that there is significant upside at depth.

Mining giant Rio Tinto (ASX:RIO) has increased its strategic stake in Sovereign Metals (ASX:SVM) to 19.9%, giving it greater exposure to the world class Kasiya rutile and graphite project in Malawi.

 

TRADING HALTS

Antilles Gold (ASX:AAU) – pending an announcement in relation to completed metallurgical testwork for the proposed La Demajagua gold-silver-antimony mine in Cuba.

RemSense Technologies (ASX:REM) – pending an announcement to the market in relation to the awarding of a service contract.

Northern Minerals (ASX:NTU) – pending the release of an announcement in relation to a capital raise.

Pengana Global Private Credit Trust (ASX:PCX) – pending an announcement in relation to a proposed capital raising.

 

 

At Stockhead, we tell it like it is. While Altech Batteries, Antipa Minerals, Brightstar Resources, Mako Gold, Perpetual Resources and Sovereign Metals are Stockhead advertisers, they did not sponsor this article.

Today’s Closing Bell is brought to you by Webull Securities. Webull Securities (Australia) Pty. Ltd. is a CHESS-sponsored broker and a registered trading participant on the ASX.

 

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