Smaller oil and gas stocks rallied from rising crude prices. Pic via Getty Images
Closing Bell: Energy stocks cushion ASX’s mini crash; Infinity soars on Cangai copper acquisition
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- ASX 200 index falls despite gains in energy stocks
- Smaller oil and gas firms benefit from rising crude prices
- Iron ore stocks drop as prices retreat
The ASX 200 index fell hard on Friday, down by 0.75%, despite some gains in the Energy sector. For the week, the index slipped nearly 1%, marking its first weekly drop in three weeks.
Rising concerns that Israel might retaliate against Iran by targeting its oil resources pushed energy stocks higher. Smaller oil and gas stocks are particularly benefitting today, after crude prices spiked by more than 5% last night.
The surge came after President Biden suggested the US, alongside Israel, might be considering a potential strike on Iranian oil assets in response to a recent missile attack on Israel.
Experts say a major attack on Iran’s oil facilities could reduce supply by 1.5 million barrels per day, while smaller strikes could take out between 300,000 and 450,000 barrels.
Meanwhile, iron ore stocks tumbled after iron ore futures prices in Singapore fell by around 1%.
BHP (ASX:BHP), Rio Tinto (ASX:RIO) and Fortescue (ASX:FMG) were all down by more than 2% each.
In stocks news, Woodside Energy Group (ASX:WDS) reported a tragic fatal incident at its Beaumont Clean Ammonia facility in Texas. Despite this, its shares rose by 2% due to positive sentiment in the oil market.
Still in the large caps space, ANZ Bank (ASX:ANZ) fell 1% after OnePath Custodians (OPC), along with Zurich Australia and ANZ, reached a $50 million settlement in a class action lawsuit involving certain OPC members. The lawsuit alleged that these members were not given fair interest rates on their investments prior to January 2020.
Meanwhile, fund manager Regal Partners (ASX:RPL) has agreed to allow Platinum Asset Management (ASX:PTM) to peek into its books, enabling Platinum to potentially make a better acquisition offer. While Regal initially rejected Platinum’s proposal, this due diligence could result in a more attractive offer price.
What else happened today?
Hong Kong stocks were the strongest performers in Asia today as investors awaited US jobs data later tonight. The HangSeng index was up 2%.
Stocks in Japan and South Korea fell, while mainland China is still closed for a holiday.
Oil prices steadied in Asian hours after rising by over 9% this week.
Meanwhile, regional tension is rising today as North Korean leader Kim Jong-un threatened to use nuclear weapons against South Korea if provoked. The rhetoric has intensified after North Korea’s recent missile tests.
And tonight’s non-farm payrolls report in the US is a crucial test for markets.
The data is expected to show that the unemployment rate will stay steady at 4.2%, with payrolls likely increasing by 150,000.
However, if unemployment rises, markets may shift their expectations toward more aggressive rate cuts from the Federal Reserve.
ASX SMALL CAP LEADERS
Today’s best performing small cap stocks:
Swipe or scroll to reveal full table. Click headings to sort:
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| 1TT | Thrive Tribe Tech | 0.002 | 100% | 300,000 | $611,622 |
| H2G | Greenhy2 Limited | 0.006 | 50% | 11,302,149 | $2,392,737 |
| IBG | Ironbark Zinc Ltd | 0.003 | 50% | 6,395,778 | $3,667,296 |
| TMK | TMK Energy Limited | 0.003 | 50% | 6,603,738 | $13,843,224 |
| IMI | Infinitymining | 0.043 | 39% | 283,568 | $4,208,068 |
| FGL | Frugl Group Limited | 0.022 | 38% | 500,000 | $1,678,538 |
| MTL | Mantle Minerals Ltd | 0.002 | 33% | 189,151 | $9,296,169 |
| RBR | RBR Group Ltd | 0.002 | 33% | 505,833 | $2,451,607 |
| RNE | Renu Energy Ltd | 0.002 | 33% | 544,456 | $1,206,201 |
| ILA | Island Pharma | 0.135 | 29% | 2,647,415 | $13,323,330 |
| AYT | Austin Metals Ltd | 0.005 | 25% | 1,100,000 | $5,296,765 |
| RIL | Redivium Limited | 0.005 | 25% | 269,000 | $10,987,419 |
| TGH | Terragen | 0.041 | 24% | 22,021 | $12,179,677 |
| TZL | TZ Limited | 0.026 | 24% | 454,362 | $5,388,245 |
| XGL | Xamble Group Limited | 0.027 | 23% | 5,899 | $6,515,456 |
| AUZ | Australian Mines Ltd | 0.009 | 20% | 4,747,322 | $10,488,841 |
| CCZ | Castillo Copper Ltd | 0.006 | 20% | 1,000,000 | $6,497,527 |
| JAV | Javelin Minerals Ltd | 0.003 | 20% | 3,000 | $10,692,115 |
| OLI | Oliver'S Real Food | 0.012 | 20% | 101,025 | $4,407,319 |
| CBL | Control Bionics | 0.082 | 17% | 341,135 | $14,650,074 |
| ATV | Activeportgroupltd | 0.048 | 17% | 689,986 | $14,491,103 |
| WCN | White Cliff Min Ltd | 0.025 | 17% | 103,837,734 | $34,217,136 |
| PAB | Patrys Limited | 0.004 | 17% | 2,911,419 | $6,172,342 |
Control Bionics (ASX:CBL) is faring well today on the back of some good news. The company has reported a significant improvement in NDIS approvals alongside the launch of a long-term leasing program for its Trilogy system. Trilogy is designed to help individuals with neurodegenerative conditions gain quicker access to vital communication technology.
The company has received approvals from the NDIS totalling close to $400k in the past eight weeks. There has been a growing momentum in NDIS approval process in recent times, noted Control Bionics, adding that its new long-term leasing program for Trilogy has been well received.
Island Pharmaceuticals (ASX:ILA) meanwhile is still trading nicely off the back of its news from yesterday.
The company announced it has successfully dosed all subjects in the Phase 2a part of its ISLA-101 clinical trial for dengue fever.
This trial, called PROTECT, includes both a preventative (Phase 2a) and a therapeutic (Phase 2b) approach. Starting today, subjects will be exposed to an attenuated strain of the dengue virus, and results from Phase 2a are expected by the end of 2024. The Phase 2b trial is set to begin in January 2025.
As part of this, ILA is raising $3.5 million in a two-tranche placement to achieve its “near term inflexion points”. The raising was struck at 7 cents per share, a 12% discount, with one attached options for every share issue at the same price. Half of the oppies expire within 12 months of issue; the other half within 24 months. Subject to shareholder approval, the placement was supported by well-known biotech names including Dr Daniel Tillett, the head of cancer drug repurposer Race Oncology (ASX:RAC).
Infinity Mining (ASX:IMI) was up on yesterday’s news. Rumours were put to bed yesterday as IMI signed a binding agreement to acquire the renowned Cangai copper mine and surrounding tenements in northwest NSW from Castillo Copper (ASX:CCZ).
Cangai historically produced some super high grades of copper ore in the past, ranging from about 7-10% with silver and gold credits to boot back in the early 1900s.
Diamond drilling by CCZ from 2018 returned up to 14.45% copper, 5.93% zinc and 40.1g/t Ag, including a best intersection of 4.39m at 5.06% Cu, 2.56% Zn and 20.1 g/t Ag from 49.9m. With a modern arsenal of exploration and development tools, the explorer is set to hit the ground running at Cangai’s 114,000t of copper metal JORC resource after a due diligence period.
Tambourah Metals (ASX:TMB) reckons there’s enough grade data to announce potential extensions to the lode gold system at Tambourah King, with results from the latest RC drilling showing significant highlights of:
5m at 2.02g/t Au from 53m, including 1m at 3.35g/t Au from 54m in TBRC042 and 6m at 2.05g/t Au from 18m, including 1m at 4.61 g/t Au from 23m in TBRC043. 11 holes total were drilled and from the RC drilling, and TMB has scored into a 150m strike extending the known gold system.
A couple of hiccups recently saw ex-WA Premier Mark McGowan-backed Frontier Energy (ASX:FHE)’s share price in the doldrums, but is now back on the rise after updating its finance strategy for Stage One of its Waroona renewable energy project.
After just ditching a $23m equity raise that sent prices plummeting, it’s now looking at non-dilutive funding options to progress Waroona, a project that combines a 120MWdc (megawatts of direct current) solar facility with an integrated 4.5-hour duration 80MW/360MWh lithium-ion phosphate battery to supply clean electricity into the South West Interconnected System.
It’s on track to reveal an updated definitive feasibility study (DFS) which is expected to demonstrate several key capital cost reductions compared to the original DFS, is on track for delivery in Q4 this year and is key to progressing discussions for the project.
And there’s nothing like an extraordinarily large-scale copper discovery to end the week, which White Cliff Minerals (ASX:WCN) now knows all about, after finding some super high veins of the red metal at its Rae project in Nunavut, Canada. Grades of rock chips across a long stretch of the project area have been assayed and reveal up to 64.02% copper at Rae’s Don and Pat prospects.
ASX SMALL CAP LAGGARDS
Today’s worst performing small cap stocks:
Swipe or scroll to reveal full table. Click headings to sort
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| GEN | Genmin | 0.055 | -29% | 3,365,521 | $53,526,416 |
| AQC | Auspaccoal Ltd | 0.120 | -25% | 4,027,112 | $85,870,953 |
| AAU | Antilles Gold Ltd | 0.003 | -25% | 810,365 | $7,422,971 |
| GMN | Gold Mountain Ltd | 0.003 | -25% | 400,000 | $15,629,893 |
| ICU | Investor Centre Ltd | 0.003 | -25% | 362,597 | $1,218,045 |
| TX3 | Trinex Minerals Ltd | 0.002 | -25% | 6,171,889 | $3,657,305 |
| 88E | 88 Energy Ltd | 0.002 | -20% | 37,978,500 | $72,334,530 |
| AIV | Activex Limited | 0.004 | -20% | 333,924 | $1,077,513 |
| CTO | Citigold Corp Ltd | 0.004 | -20% | 1,013,031 | $15,000,000 |
| GGE | Grand Gulf Energy | 0.004 | -20% | 861,744 | $12,251,936 |
| AR3 | Austrare | 0.135 | -18% | 858,514 | $26,064,018 |
| AHN | Athena Resources | 0.005 | -17% | 1,288,400 | $6,422,805 |
| CUL | Cullen Resources | 0.005 | -17% | 54,482 | $4,160,411 |
| RGL | Riversgold | 0.005 | -17% | 4,157,500 | $7,964,776 |
| VML | Vital Metals Limited | 0.003 | -17% | 186,900 | $17,685,201 |
| SNX | Sierra Nevada Gold | 0.055 | -17% | 595,155 | $8,115,778 |
| NYR | Nyrada Inc. | 0.099 | -14% | 1,526,758 | $20,954,000 |
| BMR | Ballymore Resources | 0.125 | -14% | 15,141 | $25,625,935 |
| PIM | Pinnacleminerals | 0.045 | -13% | 845,530 | $2,364,092 |
| CTN | Catalina Resources | 0.004 | -13% | 138,202 | $4,953,948 |
| MRQ | Mrg Metals Limited | 0.004 | -13% | 331,199 | $10,846,075 |
| PIL | Peppermint Inv Ltd | 0.007 | -13% | 780,000 | $16,970,867 |
IN CASE YOU MISSED IT
AdAlta (ASX:1AD) has received its Research and Development Tax Incentive (RDTI) for FY2024 of $1.77m, enabling full repayment of the balance of the company’s Treasury Corporation of Victoria loan facility of $1.4m.
That leaves a tidy $0.37m left to boost the company’s balance sheet.
The biotech company targets untreated diseases using the i-body: a unique drug discovery platform.
“I personally want to thank the Victorian Government for granting AdAlta this now repaid loan, which came our way via the Government’s R&D Cash Flow Loan Initiative,” CEO and MD Dr Tim Oldham said.
“This debt facility added significant flexibility to our ongoing funding plans for AdAlta’s research and development program and reduced our reliance on equity capital.”
TRADING HALTS
Panther Metals (ASX:PNT) – pending announcement on exploration results
At Stockhead, we tell it like it is. While AdAlta, White Cliff Minerals, Frontier Energy and Tambourah Metals 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.
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.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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