• ASX closes higher despite Mineral Resources dip
  • US dollar weakens amid uncertain election polling
  • Ordell, Blue Star Helium star for small caps

 

The ASX closed Monday higher by 0.56%, riding the wave of optimism from Wall Street. 

However, a dip in Mineral Resources (ASX:MIN) and declines in the energy sector limited overall gains, as investors prepared for a hectic week ahead packed with US elections and central bank meetings.

The Federal Reserve, the RBA and Bank of England will convene at various times this week, with expectations for a rate cut from all but the RBA.

Among the 11 sectors today, tech and utilities emerged as leaders, while mining and energy lagged. 

 

Source: Market Index

 

WiseTech Global (ASX:WTC) led the tech sector with a 3% gain on no news. Origin Energy (ASX:ORG) led utilities with a 2% gain, also on no specific news.

Mineral Resources (ASX:MIN) plunged by 8.5% after the company announced several key actions on leadership succession following issues involving its CEO, Chris Ellison. 

The board said it will impose financial penalties of $8.8 million on Ellison, and accelerate the leadership succession plan.

Ellison is now expected to remain in his role during an orderly transition over the next 12-18 months, while Chair James McClements will step down before next year’s AGM.

“There can be no doubt that the actions, decisions and behaviours of Mr Ellison have been profoundly disappointing and require sanction and penalty,” said McClements.

Westpac (ASX:WBC) came back to finish 0.75% higher after falling 0.5% earlier, having  reported a 3% decline in net profit to $7 billion for FY24. 

The bank is set to pay a final dividend of 76¢, fully franked, which is a 6% increase from last year. 

Crude prices surged over 1% this morning after OPEC+ announced a delay in its production increases, but energy stocks didn’t reflect this news, with Woodside Energy Group (ASX:WDS) and Ampol (ASX:ALD) dipping slightly. 

Still in large caps, Telix Pharmaceuticals (ASX:TLX) rose 4% after the US Centers for Medicare & Medicaid Services (CMS) announced it will initiate separate payments for specialised diagnostic radiopharmaceuticals. 

This decision will improve patient access to advanced imaging tools, including those offered by Telix.

 

Aussie dollar rallies

The US dollar weakened this afternoon against major currencies including the AUD, as recent polling indicated no clear frontrunner in the US presidential race. 

This followed a poll showing Kamala Harris with a slight lead in Iowa, a state Trump previously won. 

At this time of writing, the AUD has risen to US66.15 cents, after hovering around the 65c handle this morning.

Amidst all this, oil prices jumped 1% this afternoon after OPEC+ postponed a planned output hike.

Meanwhile, stock markets in Asia mostly rose, led by gains in South Korea and Australia, with US stock futures also showing an uptick in Asian hours.

 

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

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Blue Star Helium (ASX:BNL) has been rising today after having advised it’s successfully completed its agreement to farm out a 50% interest in its Galactica/Pegasus project in Colorado, USA, to Helium One Global.

This is in exchange for the latter paying a US$1.5 million cash consideration and to fund the drilling of six development wells via a US$2.7m free carry. Blue Star will remain the operator of the gas project.

Ordell Minerals (ASX:ORD) was well up after announcing “significant drill results” from recent, shallow, wide-spaced reverse circulation drilling at its Barimaia Gold Project, located near Mount Magnet in the Murchison region of Western Australia.

Drilling completed on section 585,640E returned high-grade gold mineralisation in 24BARC083 (29m at 2.52g/t Au from 81m) to the end of the hole at 110m. Meanwhile, visible gold was panned in the interval from 107m to 108m, which returned an intercept of 1m at 47.5g/t Au.

Another junior goldie, Western Gold Resources (ASX:WGR), was also a standout performer early doors. The company advised its Mining Proposal and Mine Closure Plan has been approved by the WA Department of Energy, Mines, Industry, Regulation and Safety for open pit mining operations at the Gold Duke project, west of Wiluna in Western Australia’s Mid West.

And Future Battery Minerals (ASX:FBM) has been having a good Monday, too, having announced it’s selling its 80% interest in the Nevada lithium project to Austroid Corporation for $4m in cash to focus on its lithium assets in WA’s Goldfields region.

 

ASX SMALL CAP LAGGARDS

Today’s worst performing small cap stocks:

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IN CASE YOU MISSED IT

Blue Star Helium (ASX:BNL) has completed the farm out of a 50% interest in its Galactica/Pegasus project in Colorado, USA, to Helium One Global for US$1.5 million, plus US$2.7m free carry for the next six development wells.

First drilling at Firetail Resources’ (ASX:FTL) Skyline copper project in Canada has returned assays of up to 6.75% copper, 10.61% zinc and 23.87g/t silver after intersecting massive, semi-massive and disseminated sulphides that confirmed at least two distinctive high-grade trends within the mineralised corridor.

Future Battery Minerals (ASX:FBM) is selling its 80% interest in the Nevada lithium project to Austroid Corporation for $4m in cash to focus on its flagship Kangaroo Hills lithium project and Miriam lithium project in WA.

Spartan Resources (ASX:SPR) is selling its non-core Glenburgh and Egerton gold projects in WA to Benz Mining for up to $15.6m in cash and shares to focus on its flagship Dalgaranga project. It will retain exposure to upside through a 15% stake in Benz.

Aura Energy (ASX:AEE) has appointed Mohamed El Moctar Mohamed El Hacene to the newly established role of country manager for Mauritania.  Hacene is a highly qualified Mauritian national with extensive experience in mining and international affairs and previously served as Mauritania’s Minister of Petroleum and Mines from 2007 to 2008.

He started work with AEE on 1 November after ten years with the United Nations as director, economic development and integration division, economic and social commission for Western Asia based in Lebanon.

“We are very pleased to welcome Moctar to the Aura Energy team, his experience is outstanding and his passion for the Tiris uranium project and developing the mining industry in Mauritania is formidable,” AEE managing director and CEO Andrew Grove said.

CuFe (ASX:CUF) has completed the sale of the company’s mining rights at the JWD iron ore mine in WA to Newcam Minerals.  The company met all conditions precedent by 31 October with settlement of the transaction completed by November 1.

“We are pleased to complete this agreement with Newcam and thank them for their assistance in achieving this,” CUF executive director Mark Hancock said.

“We would also like to thank all those who have assisted us over our time at JWD.”

Intra Energy Corporation (ASX:IEC) has received commitment from sophisticated investors to raise $850,000 via a two-tranche non-brokered placement at an issue price of .05cents.

Tranche 1 will settle this week utilising the company’s existing placement capacity under Listing Rule 7.1 by the issue of 218m shares, raising $109,000. Tranche 2 is subject to shareholder approval at the IEC’s upcoming annual general meeting (AGM) and will raise $612,000 by the issue of 1.22b shares.

Funds raised will be used to further exploration at the Maggie Hays Hill gold and lithium project in WA, the assessment of further value accretive opportunities, and general working capital.

Star Minerals (ASX:SMS) is undertaking a two for three renounceable rights issue of shares at 4cents per share raise up to $2.5m, representing a discount of 27% to the company’s last close of $0.055.

Funds raised will be spent towards exploration activity at the Cobra project in Namibia, assuming shareholders approve the issue of Consideration Shares and Performance Shares to Madison at a forthcoming general meeting of shareholders.  All new shares issued will rank equally with existing shares on issue and the company will apply for quotation of the new shares.

Directors of SMS intend to participate in the rights issue in the manner set out in the offer document. 

 

Trading halts

Lord Resources (ASX:LRD)

Benz Mining Corp (ASX:BNZ)

Unico Silver (ASX:USL)

Provaris Energy (ASX:PV1)

Mighty Kingdom (ASX:MKL)

King River Resources (ASX:KRR)

 

At Stockhead we tell it like it is. While Aura Energy, Blue Star Helium, CuFe, Firetail Resources, Future Battery Minerals, Intra Energy Corporation, Spartan Resources and Star 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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