• XEC lifts on resources, posts 1.8% gain on Thursday
  • XOJ closes 0.8% higher
  • East33 watch continues, oysters from Sydney up circa 25%

 

The resources-rich ASX Emerging Companies (XEC) index is surging on Thursday, with gold, base metals and the major commodities kicking higher overnight.

The All Ords is 1% higher too, after the US Fed encouraged investors across global markets with a gentler-than-expected rate lift to tackle some awfully obstinate inflation shaking it’s fists at the US economy.

The Aussie dollarbuck enjoyed the 50bp move higher, while global oil prices climbed overnight as the European Commission proposed a phased embargo of Russian oil.

Brent crude jumped by circa 5% while US Nymex crude gained 5.3%.

I suppose we’ll want to mention Moody’s has flagged the self-evident – Aussie mortgage delinquency rates are going to increase this year – moderately – because of the rising interest rates and slowing property prices and such.

 

TODAY’S BIGGEST SMALL CAP WINNERS

(Stocks highlighted in yellow rose after making announcements during the trading day).

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We remain on tight seafood wrangler watch here at Stockhead, and East 33 (ASX:E33) continues to require a morning dose of Promethazine theoclate, promethazine hydrochloride and/or dimenhydrinate – today, like my lunch, E33 is up 23%.

The share price has been up and down like watching the last scenes of a James Cameron movie on repeat. The stock peaking at over 120% on Monday, before settling to a more cheerful 82% gain at the close.

If you’ve not been staying up-to-date with the home of Sydney Rock Oysters there’s been fear and loathing, and then love, and then fear ,ever since the company flagged the potential  impact of El Nina on its harvest.

It’s been stormy waters since.

Peako (ASX:PKO) is 35.3% higher at the close of trade, thanks to 5km of first pass drilling which is due to kick off ASAPly at the ‘Eastman’ intrusive complex in the Kimberley – where the PKO team is sniffing out a major PGE discovery.

The Eastman Intrusion comprises a 16.5km long PGE-rich mineralised layered mafic-ultramafic intrusive complex “with only limited historical drilling”, PKO says.

Recent drilling by Pantoro (ASX:PNR) at the nearby ‘Lambo’ Intrusion has also defined wide PGE intercepts, so there’s form, of yes, there is form.

Reuben says the $6m market cap stock is up 10% year-to-date. It had $2.15m in the bank at the end of March.

Up strongly, Red Sky Energy (ASX:ROG) has announced a 1,228% increase in best estimate on Petroleum Initially In Place (PIIP) at the ‘Killanoola’ oil project in South Australia up to 93mmbbls.

“This is a significant increase from the previously best estimated 7mmbbls PIIP,” MD Andrew Knox said. “We are working towards a market for the crude and steps to bring a rig in and perforate the additional zones of interest.”

 

TODAY’S BIGGEST SMALL CAP LOSERS

(Stocks highlighted in yellow fell after making announcements during the trading day).

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ANNOUNCEMENTS YOU MAY HAVE MISSED

Tombola Gold (ASX:TBA) out of a trading halt went up ~5% to 6.4 cents today after the company announced that the first diamond drill hole in a four-hole program at Little Duke has intersected a wide zone of copper mineralisation between 7–250ml base on visual inspection and supported by a Niton handle XRF analyser.

Significant sulphides in broad zone consisted of chalcopyrite, pyrrhotite, pyrite and quartz/carbonate in hydrothermal breccia. Assay results are expected in four weeks.

New World Resources’ (ASX:NWC)  spinout Koba Resources (ASX:KOB) listed on the ASX on Wednesday and will explore and develop North American copper-cobalt assets.

The demerger, which was undertaken via the in-specie distribution of 20,000,000 Koba shares to New World Shareholders, was completed on April 26 with the final distribution 1:79.845164. New World has applied for an ATO Class Ruling to confirm the income tax consequences with respect to the demerger.

 

TRADING HALTS

Great Western Exploration (ASX:GTE) – trading halt, pending the release of an announcement regarding a fund raising

Aeon Metals (ASX:AML) – trading halt, pending the release of an announcement relating to a material equity capital raise

QuickFee Limited (ASX:QFE) – trading halt, relating to a capital raise