Pilbara Minerals falls 5pc as share block sale is reported. Picture Getty
Closing Bell: Lithium stocks tumble after Pilbara selldown; Island Pharma surges 30pc
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- ASX edges down in a quiet market
- Pilbara Minerals falls 5pc as share block sale is reported
- Westpac sells auto finance unit for up to $1.6 billion
The ASX has lifted slightly on Thursday, up by 0.1%, as traders remain cautious amid ongoing tensions in the Middle East.
It was a quiet trading session overall, with no sector moving more than 1%.
Similarly, major indexes in the US were mostly flat overnight, each up less than 0.1%, as Wall Street awaits the September jobs data due out on Friday.
This report will be important for assessing the health of the US economy and could influence the Federal Reserve’s decisions on interest rates.
Chris Larkin at E*Trade noted, “Friday’s monthly jobs report will have the final word on the current jobs picture, and more than likely, on near-term market sentiment.”
Traders are also on edge after Iran’s recent strike on Israel, with many anticipating a possible retaliatory action from Israel, although the timing remains unclear.
President Biden addressed this uncertainty, stating, “The answer is no,” when asked if he would support an Israeli retaliatory attack.
He also mentioned plans to speak with Prime Minister Netanyahu and indicated that the G7 is preparing a statement to help prevent further escalation.
Energy stocks on the ASX pulled back today following a rally yesterday, as oil prices steadied after a 5% surge.
In the large caps sector, lithium miner Pilbara Minerals (ASX:PLS) fell 5% after reports that Morgan Stanley and Bank of America are looking to sell a block of its shares.
This news affected other lithium stocks like Mineral Resources (ASX:MIN) and IGO (ASX:IGO), which dropped over 1% and 2% respectively.
Westpac (ASX:WBC) also saw a 1% decline after announcing the sale of its auto finance loans and lease receivables to Resimac (ASX:RMC) for between $1.4 billion and $1.6 billion, with the deal expected to close in the first half of 2025.
This sale completes Westpac’s exit from the auto finance sector, following a partial sale in 2021, and is not expected to significantly impact its financial results.
Sigma Healthcare (ASX:SIG) continued its rally, up by 8% today.
A couple of days ago, Sigma announced new data-sharing rules aimed at addressing regulatory concerns surrounding its merger with Chemist Warehouse.
Under these new rules, Sigma will allow its franchisees to terminate agreements with Chemist Warehouse and will restrict the use of confidential data from Sigma Wholesale customers and franchisees for the next three years.
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 |
|---|---|---|---|---|---|
| AKN | Auking Mining Ltd | 0.006 | 50% | 3,389,246 | $1,410,281 |
| ERL | Empire Resources | 0.003 | 50% | 1,585,059 | $2,967,826 |
| VML | Vital Metals Limited | 0.003 | 50% | 6,500,000 | $11,790,134 |
| HIQ | Hitiq Limited | 0.020 | 43% | 839,747 | $4,925,830 |
| VAR | Variscan Mines Ltd | 0.010 | 43% | 2,952,664 | $3,101,003 |
| XPN | Xpon Technologies | 0.010 | 43% | 3,429,051 | $2,537,090 |
| PFT | Pure Foods Tas Ltd | 0.021 | 40% | 22,420 | $1,831,384 |
| FIN | FIN Resources Ltd | 0.007 | 40% | 344,795 | $3,246,344 |
| OEC | Orbital Corp Limited | 0.145 | 38% | 882,823 | $15,335,976 |
| ERA | Energy Resources | 0.011 | 38% | 12,960,509 | $177,186,394 |
| GMN | Gold Mountain Ltd | 0.004 | 33% | 2,771,346 | $11,722,420 |
| H2G | Greenhy2 Limited | 0.004 | 33% | 5,635,363 | $1,794,553 |
| MHC | Manhattan Corp Ltd | 0.002 | 33% | 9,173,193 | $4,638,800 |
| VRC | Volt Resources Ltd | 0.004 | 33% | 1,573,020 | $12,476,034 |
| YAR | Yari Minerals Ltd | 0.004 | 33% | 58,223 | $1,447,073 |
| ENX | Enegex Limited | 0.020 | 33% | 69,710 | $5,533,740 |
| NYR | Nyrada Inc. | 0.115 | 32% | 2,884,881 | $15,852,157 |
| ILA | Island Pharma | 0.105 | 31% | 4,142,050 | $10,151,108 |
| INV | Investsmart Group | 0.140 | 27% | 10,000 | $15,693,753 |
| LU7 | Lithium Universe Ltd | 0.015 | 25% | 7,755,349 | $7,126,963 |
| MBK | Metal Bank Ltd | 0.025 | 25% | 540,524 | $7,809,186 |
| CTO | Citigold Corp Ltd | 0.005 | 25% | 1,125,011 | $12,000,000 |
| A8G | Australasian Metals | 0.135 | 23% | 69,919 | $5,733,254 |
Island Pharmaceuticals (ASX:ILA) jumped nearly 40% after successfully dosing 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 tomorrow, 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).
Chariot Corporation (ASX:CC9) is up on announcing a tactical change to monetising its Black Mountain hard rock lithium project in Wyoming, USA. The junior now envisions a shift from exploring for a large-scale resource to instead testing the viability of a pilot mine at the project that could rapidly produce spodumene concentrate to capitalise on the growing lithium supply deficit in the North American market.
The contemplated modular plant design is expected to reduce upfront costs and offer flexibility to scale up rapidly, and says the new long-term pilot mine strategy could provide short-term cash flow and optimise future development options – including its original large-scale mining plans for the project.
The new plan near-term consists of 4300m of Phase 2 RC drilling to define a high-priority, small-scale lithium resource to underpin the pilot mine and establish the foundation for future larger-scale resource definition.
pXRF results from preliminary field mapping at Golden Mile Resources (ASX:G88)’s Ford prospect at the Pearl project have highlighted an 8m-wide fault zone at surface hosting visible copper and polymetallic mineralisation, with:
- Copper values up to 13.4%
- Lead values up to 1.29%; and
- Zinc values up to 7.22%.
The project is certainly shaping up as a polymetallic play, the news coming just days after the company reported exceptional rock chip assays of up to 930g/t silver, 10.05% copper, and 8.09% zinc from first pass sampling at the Odyssey prospect.
Firebird Metals (ASX:FRB) was up on yesterday’s news. The design for FRB’s proposed battery-grade manganese sulphate plant in Jinshi, China has been approved – a crucial step in the Middle Kingdom’s development process for these types of projects. Plans for the development of the plant will cover a total land area of 12.09 hectares, with a building area of 84,399km2 and a designated greening area of 11,960km2.
FRB says through the approval of preliminary design, ~80% of the requirements needed for the Building and Construction Permit have been completed.
Variscan Mines (ASX:VAR)’s shares are through the roof today as it sets an AGM date and investors mull over a $2m entitlement offer it received underwritten support from major shareholder Zinc GroupCo. Funds will be used to accelerate exploration and drilling programs and development studies at the high grade zinc Novales-Udias project in Cantabria, northern Spain.
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 |
|---|---|---|---|---|---|
| INP | Incentia Pay Ltd | 0.003 | -40% | 60,988 | $6,219,650 |
| TMK | TMK Energy Limited | 0.002 | -33% | 13,262,642 | $20,764,836 |
| IMI | Infinitymining | 0.031 | -28% | 401,858 | $5,836,998 |
| ALR | Altairminerals | 0.003 | -25% | 12,539,702 | $17,186,310 |
| ATH | Alterity Therap Ltd | 0.003 | -25% | 10,832,351 | $21,281,344 |
| PAB | Patrys Limited | 0.003 | -25% | 2,372,969 | $8,229,789 |
| RFT | Rectifier Technolog | 0.007 | -22% | 606,831 | $12,437,856 |
| UCM | Uscom Limited | 0.011 | -21% | 25,101 | $3,506,678 |
| XGL | Xamble Group Limited | 0.022 | -21% | 505,040 | $8,292,399 |
| EVR | Ev Resources Ltd | 0.004 | -20% | 20,420 | $6,981,357 |
| OVT | Ovanti Limited | 0.004 | -20% | 9,979,043 | $7,781,742 |
| PUR | Pursuit Minerals | 0.002 | -20% | 24,742 | $9,088,500 |
| RIL | Redivium Limited | 0.004 | -20% | 240,788 | $13,734,274 |
| THR | Thor Energy PLC | 0.013 | -19% | 35,000 | $3,700,372 |
| AOA | Ausmon Resorces | 0.003 | -17% | 490,655 | $3,176,998 |
| JAV | Javelin Minerals Ltd | 0.003 | -17% | 1,320,000 | $12,830,539 |
| PRM | Prominence Energy | 0.005 | -17% | 16,667 | $2,335,058 |
| TON | Triton Min Ltd | 0.010 | -17% | 127,109 | $18,820,665 |
| WML | Woomera Mining Ltd | 0.003 | -17% | 587,673 | $6,165,223 |
| GRE | Greentechmetals | 0.105 | -16% | 145,811 | $10,384,997 |
| IRX | Inhalerx Limited | 0.028 | -15% | 45,000 | $6,262,310 |
| 1AI | Algorae Pharma | 0.006 | -14% | 1,007,385 | $11,811,763 |
IN CASE YOU MISSED IT
1832 Asset Management has taken a position in Felix Gold (ASX:FXG) , after investing a total of almost $2m through a combination of being a cornerstone in the placement and on-market buying to become a substantial holder.
The asset manager is backed by the Bank of Nova Scotia – a C$88 billion financial services giant whose asset management division has particular expertise in gold exploration, development and mining. 1832 is also one of the largest investors in Kinross Gold Corp (NYSE:KGC), with a US$67 million position whose Kinross-owned Fort Knox gold mine is strategically positioned next door to FXG.
FXG is currently exploring its historical Treasure Creek landholding in Alaska’s prolific Fairbanks gold district.
Historical gold production in the region exceeds some 16Moz, with FXG’s leases sandwiched between Kinross’ 11.8Moz Fort Knox mine and Freegold Ventures’ 19.7Moz Golden Summit project (18km away).
Antipa Minerals (ASX:AZY) has appointed Mark Rodda as executive chair, effective today.
Rodda has been a director of Antipa since 2010, and brings nearly 30 years of experience as a lawyer and corporate consultant, with an extensive background in legal, commercial, and corporate management roles within the resources sector.
The company says his expertise is well aligned with its exploration and development plans in the Paterson Province, home to its flagship Minyari Dome gold-copper project.
The Paterson Province is attracting significant new investment and investor attention with its world-class gold and copper operations and development projects, including the Telfer mine and processing facility, Greatland Gold’s (LSE:GGP) Havieron development project, and Rio Tinto’s (ASX:RIO) Winu development project.
With Rodda’s particular skill set in legal governance, project development, and corporate strategy, Antipa says its well-positioned to maximise the value of its portfolio of strategic interests, while rapidly advancing the exploration and advancement of the Minyari Dome project.
Summit Minerals (ASX:SUM) has appointed Jamie Wright as a non-executive director, effective immediately.
Wright brings a wealth of experience in the minerals sector, including as the managing director of Global Lithium Resources (ASX:GL1) where he led the company through an IPO and a period of substantial growth.
“His extensive experience in the critical minerals sector from exploration to development will complement our strategic direction as we continue to explore and develop our asset portfolio. Jamie’s insights will be instrumental in guiding Summit Minerals as we progress our Equador niobium and tantalum project,” said managing director Gower He.
And, well, just in case you missed it mentioned further above… Chariot Corporation (ASX:CC9) has revised its strategy for its Black Mountain project in Wyoming, USA, and now envisions a shift from exploring for a large-scale resource to instead testing the viability of a pilot mine at the project that could rapidly produce spodumene concentrate to capitalise on the growing lithium supply deficit in the US market.
The contemplated modular plant design is expected to reduce upfront costs and offer flexibility to scale up rapidly, and the company says its long-term pilot mine strategy could provide short-term cash flow and potentially could optimize the development of larger-scale mining operations in the future.
The plan near-term is for 4,300m of Phase 2 RC drilling to define a high-priority, small-scale lithium resource to underpin the pilot mine and establish the foundation for future larger-scale resource definition.
TRADING HALTS
Immuron (ASX:IMC) – To analyse CampETEC Hyperimmune Bovine Colostrum clinical trial data
Adslot (ASX:ADS) – Cap raise
Battery Age Minerals (ASX:BM8) – Cap raise
AusQuest (ASX:AQD) – Cap raise
Arika Resources (ASX:ARI) – Cap raise
At Stockhead, we tell it like it is. While Felix Gold, Chariot Corporation, Antipa Minerals, Summit Minerals, Golden Mile Resources and Island Pharmaceuticals 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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