Small caps are back in vogue. Via Getty
Closing Bell: Rotating to new highs, global markets are busy popping small caps back into their assets
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- ASX 200 hits new intraday high b efore rattling to a close at +0.73%
- All 11 Sectors higher, with Real Estate, Tech and the goldies cranking out the hits
- Small caps led by Labyrinth Resources with a monster 200% gain
On Wednesday local markets climbed back above the 8,000 mark into fresh all-time records.
The S&P/ASX200 closed up Wednesday, gaining 58.60 points or 0.73% to 8,057.90
Overnight, Wall St’s thorough rotation into sectors including (but not limited to) US wee caps, industrials and financials gifted the Dow Jones its best day in more than 12 months.
With the stateside rally spilling across the many underperforming sectors outside big tech and AI adventures, the Dow added a startling 742 points or 1.9%, to close at a record 40,954. The tech laden Nasdaq finished the day just 0.2%, if anyone needed proof this rotation thing is a goer.
The good news for fans of small caps:
With Wall St now pricing in a third rate cut before Christmas to the tune of 60%, the Russell 2000 surged more than 3.5% for its 5th straight session of really cracking gains, as traders continued to rotate like cashed up lemmings toward the forlorn cliffs of underperforming smaller companies.
The Russell 2000 is now up more than 11% over the last week.
In Australian markets we’ve done pretty good and the sentiment is upbeat. At today’s high of 8081, the ASX200 has rallied 265 points (3.4%) from last Wednesday’s close of 7816.8.
The turning of the screw in stateside stocks has inspired AMP chief economist and head of investment strategy, Shane Oliver. to lift its benchmark year end target to 8100, up from 7900.
“We have revised up our year-end target for the ASX 200 to 8100 from 7900 reflecting prospects for lower interest rates globally and eventually in Australia boosting the 2025 growth outlook.
But do expect further volatility, Dr Oliver warns.
Among the many local winners on Wednesday, special mention to the rate-sensitive Property and IT stocks.
IT was up 1.4% near the close – again led by majors WiseTech Global (ASX:WTC) and Life360 (ASX:360).
Sharp buying among REITs and property stocks drove the Real Estate sector ahewad by 1.85% near the close.
Charter Hall Long WALE REIT (ASX:CLW) was up by about 3.5%.
Among healthcare names PolyNovo (ASX:PNV) added more than 9% to lead the benchmark stocks, while James Hardie (ASX:JHX) led the industrial sector with 6.1% swing.
The big banks helped the Financial sector add 1%, while a new record high for gold ensured local goldies kept the otherwise deplorable materials sector above water.
Here’s the ASX Sectors at the close on Wednesday
Not the ASX
Bitcoin is back above US$65,000, hitting its highest levels in nearly a month amid a resurgence in bullish love toward crypto.
Closer to home n Wednesday, The Shanghai Composite fell 0.4% and the Shenzhen Component dropped 0.7% to 8,819 just before lunchtime, Beijing time.
Mainland traders are trying to absorb Chinese President Xi Jinping’s speech at the Third Plenum where he urged the Communist Party to maintain “unwavering faith and commitment” to his strategic agenda – whatever that is, which remains pretty unclear – at the moment it just looks like the weaker-than-expected GDP data for June and a ceaseless conga line of geopolitical worries.
Xi did say Beijing is backing its not do anything radical strategy which prioritises local technology, advanced manufacturing and little to do with stimulating anything much else.
US Futures were mixed at 4pm in Sydney.
ASX SMALL CAP LEADERS
Here are the best-performing ASX small cap stocks:
Swipe or scroll to reveal full table. Click headings to sort:
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| LRL | Labyrinth Resources | 0.015 | 200% | 35,948,127 | $5,937,719 |
| XGL | Xamble Group Limited | 0.030 | 50% | 238,022 | $5,923,142 |
| AUK | Aumake Limited | 0.003 | 50% | 1,787,291 | $3,828,814 |
| PRX | Prodigy Gold NL | 0.003 | 50% | 1,465,653 | $4,235,549 |
| TD1 | Tali Digital Limited | 0.002 | 50% | 10,000 | $3,295,156 |
| WNR | Wingara Ag Ltd | 0.011 | 38% | 75,558 | $1,404,340 |
| DOU | Douugh Limited | 0.004 | 33% | 198,436 | $3,246,207 |
| OAR | OAR Resources Ltd | 0.002 | 33% | 100,000 | $4,833,150 |
| PKO | Peako Limited | 0.004 | 33% | 1,934,160 | $1,581,254 |
| ATH | Alterity Therap Ltd | 0.007 | 30% | 116,668,586 | $26,225,577 |
| HLX | Helix Resources | 0.003 | 25% | 9,139,041 | $6,528,387 |
| LPD | Lepidico Ltd | 0.003 | 25% | 600,000 | $17,178,239 |
| SIH | Sihayo Gold Limited | 0.003 | 25% | 487,000 | $24,408,512 |
| ADN | Andromeda Metals Ltd | 0.021 | 24% | 31,138,086 | $52,874,606 |
| ID8 | Identitii Limited | 0.011 | 22% | 1,594,279 | $5,410,643 |
| KLI | Killiresources | 0.120 | 20% | 3,629,718 | $12,022,374 |
| AVE | Avecho Biotech Ltd | 0.003 | 20% | 10,943 | $7,923,243 |
| HXL | Hexima | 0.012 | 20% | 270,178 | $1,670,396 |
| TYX | Tyranna Res Ltd | 0.006 | 20% | 648,914 | $16,439,627 |
| TTT | Titomic Limited | 0.168 | 20% | 9,773,198 | $141,536,937 |
| STP | Step One Limited | 1.745 | 20% | 886,323 | $270,596,825 |
| AQD | Ausquest Limited | 0.013 | 18% | 279,505 | $9,076,641 |
| REZ | Resourc & En Grp Ltd | 0.017 | 18% | 1,478,117 | $9,052,948 |
| FAL | Falconmetalsltd | 0.293 | 17% | 1,068,375 | $44,250,000 |
| HAW | Hawthorn Resources | 0.070 | 17% | 58,488 | $20,100,937 |
Labyrinth Resources (ASX:LRL), is the big little winner on Wednesday, after entering a 12-month option to acquire the remaining 49% of its Comet Vale gold project from Sand Queen Gold Mines for a cool $3m cash.
Comet Vale, 32km south of Menzies, is currently endowed with resource of 96,000oz at 4.8g/t gold.
It’s also snapping up the Vivien gold project by acquiring private company Distilled, whereby its vendors Alex Hewlett and Kelvin Flynn are expected to emerge with 12.3% and 10.2% voting power in LRL once transactions are finalised.
As per Stockhead’s wonderful Cameron Drummond, LRL’s new plaything is just a hop, step and 6km jump from South African mining major Gold Fields’ >250,000ozpa Agnew mine, which was previously owned by gold producer Ramelius Resources (ASX:RMS).
“Hewlett and Flynn come from roles driving value creation for WA exploration companies including Red Dirt Metals, now Delta Lithium (ASX:DLI), Spectrum Metals, Mineral Resources (ASX:MIN), Silver Lake (now part of Red 5 (ASX:RED)) and Wildcat Resources (ASX:WC8),” Cam says.
“It gives the gold junior more exposure in the Goldfields and is part of its strategy to build ounces by consolidating and growing underexplored high-grade mines around the Menzies, Leinster and Leonora corridor.”
And ahead by 40% is the local biotech with a penchant for targeting neurodegenerative diseases, Alterity Therapeutics (ASX:ATH).
ATH has climbed on positive interim data from the ATH434-202 open-label Phase 2 clinical trial in patients with multiple system atrophy (MSA), which has been shown to pre-clinically reduce α-synuclein pathology and preserve neuronal function by restoring normal iron balance in the brain. This is good news… trust me, I’m not a doctor.
Meanwhile, living its best life as a “leading online, direct to consumer, inner wear brand” on Wednesday is Step One Clothing (ASX:STP), which just dropped a handsome uptick to forward guidance.
Subject to final audit, Step One now expects its FY24 financial results to be:
- $84 million in FY24 revenue (vs FY23 $65 million), that’s circa 30% growth on the prior corresponding period (pcp)
- $17 million in FY24 EBITDA (vs FY23 $12 million), an over 42% bump on pcp
“Our high-quality sustainable innerwear products, in-house marketing capabilities and brand ownership continue to resonate well with
customers,” says founder and CEO, Greg Taylor.
“With a strong financial position, we are well positioned to continue expanding our customer base, establish new retail partnerships and grow our brand presence globally.”
And if it’s manufacturing and technology solutions for high-performance metal additives that you admire, then Titomic (ASX:TTT) is an increasingly salient option. TTT continues to rise a day after the announcement it’d hired seasoned US Defence industry executive, Dr Patricia Dare. Dr Dare, (rumoured to be former Marvel villain now using her powers for good), and former Boeing and Lockheed executive is on board to further push TTT into the US Defence sector following its cracking headway into that lucrative sector on the top of recent contract wins.
And Andromeda Metals (ASX:ADN) was up, thanks to news of a binding with Traxys Europe for the sale and purchase of Andromeda’s kaolin products for the first 5 years of production, which the company says has helped it to meet the required support needed for its expanded Stage 1A+ production and further progress towards a final investment decision.
Here’s seven reasons the stock is higher on the deal:
- The 5 year agreement has an automatic annual extension (unless terminated earlier)
- Direct sales of Great White CRM of 25,000 wet metric tonnes (wmt) during the first year of production, 40,000 wmt p.a. for year two and 50,000 wmt p.a. for year three onwards (+/-10% at Traxys’ option)
- As processing capacity increases, contracted volumes of Great White CRM to increase proportionately, to 50% of the available processing capacity (capped at 130,000 wmt p.a.)
- Exclusive marketing and distribution in the Middle East (excluding Egypt and Morocco), Turkey, Sweden, Denmark, Norway, Finland, Iceland, Poland, Brazil, India2, Vietnam and Bangladesh
- Favourable payment terms with 90% of amounts provisionally invoiced payable upon receipt of commercial documents and bills of lading, with the remaining 10% paid on final invoice
- Prices for year 1 and 2 are consistent with pricing assumptions in the 2023 Definitive Feasibility Study, with prices for year 3 onwards subject to annual negotiation
- For each year, the parties share equally in pricing upside on on-sales by Traxys (other than sales of product for use in ceramics)
AusQuest (ASX:AQD) is up good this arvo after kicking off a detailed VTEM survey ( half paid for by the WA Government via its “Co-Funded Geophysics Program”) over itsMt Davis Base Metal Project, in WA’s Earaheedy Basin.
Acquired following the discovery by Rumble Resources (ASX:RTR) of extensive lead, zinc and copper mineralisation at the Chinook Prospect on the southern side of the Earaheedy Basin, MD Graeme Drew says detailed magnetics for the Mt Davis Project provide “strong evidence for the presence of either structurally disjointed Frere Iron Formation or extensive thick mafic intrusions, or both.”
Prime targets for a range of base metals by the proposed VTEM survey.
ASX SMALL CAP LAGGARDS
Here are the least performing ASX small cap stocks:
Swipe or scroll to reveal full table. Click headings to sort:
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| EDE | Eden Inv Ltd | 0.001 | -50% | 50,000 | $7,427,417 |
| JTL | Jayex Technology Ltd | 0.001 | -50% | 587,965 | $562,557 |
| DTI | DTI Group Ltd | 0.009 | -36% | 4,157 | $6,279,720 |
| SI6 | SI6 Metals Limited | 0.002 | -33% | 2,799,998 | $7,106,578 |
| SIT | Site Group Int Ltd | 0.002 | -33% | 1,014,459 | $7,807,471 |
| AX8 | Accelerate Resources | 0.015 | -32% | 10,111,659 | $13,656,587 |
| CAQ | CAQ Holdings Ltd | 0.011 | -31% | 911,383 | $11,484,580 |
| MXO | Motio Ltd | 0.012 | -25% | 3,121,566 | $4,291,174 |
| PUR | Pursuit Minerals | 0.003 | -25% | 996,899 | $14,541,600 |
| BEZ | Besragoldinc | 0.075 | -24% | 4,474,215 | $41,391,990 |
| ITM | Itech Minerals Ltd | 0.079 | -21% | 913,435 | $12,228,356 |
| EEL | Enrg Elements Ltd | 0.002 | -20% | 494,453 | $2,524,913 |
| MSG | Mcs Services Limited | 0.004 | -20% | 3,215,382 | $990,498 |
| MTL | Mantle Minerals Ltd | 0.002 | -20% | 111,027 | $15,493,615 |
| ROG | Red Sky Energy. | 0.004 | -20% | 500,000 | $27,111,136 |
| ICI | Icandy Interactive | 0.025 | -19% | 2,734,725 | $41,690,070 |
| SRH | Saferoads Holdings | 0.041 | -18% | 150,000 | $2,185,270 |
| KM1 | Kalimetalslimited | 0.175 | -17% | 437,003 | $16,133,801 |
| LPM | Lithium Plus | 0.125 | -17% | 866,580 | $19,851,000 |
| RON | Roninresourcesltd | 0.125 | -17% | 270 | $5,523,752 |
| ADG | Adelong Gold Limited | 0.005 | -17% | 2,480,090 | $6,707,934 |
| ICG | Inca Minerals Ltd | 0.005 | -17% | 3,150,107 | $4,863,219 |
| SP3 | Specturltd | 0.020 | -17% | 509,831 | $6,419,959 |
| PAM | Pan Asia Metals | 0.077 | -16% | 252,977 | $17,067,688 |
TRADING HALTS
Warriedar Resources (ASX:WA8) ) – ASX price query.
Imricor Medical Systems (ASX:IMR) ) – proposed capital raising.
Noronex (ASX:NRX) – material investment in the Namibian Copper Project.
M3 Mining (ASX:M3M) – proposed capital raising.
Cyclone Metals (ASX:CLE) – proposed capital raising.
Alvo Minerals (ASX:ALV) – pending release of a Mineral Resource Estimate update at Palma Copper Zinc Project.
Zip Co (ASX:ZIP) ) – proposed capital raising.
ICYMI – PM EDITION
Anax Metals (ASX:ANX) is preparing to start diamond drilling targeting high-grade copper mineralisation at the Evelyn deposit within its Whim Creek project in WA’s Pilbara region with the mobilisation of a rig.
Anson Resources (ASX:ASN) has identified the potential to develop both gallium and barium after a review of the historical mine plan and database for lead extraction at the Mary Springs deposit within its Ajana project in WA’s Mid West region.
Rock chip sampling at CuFe’s (ASX:CUF) tenement E52/1613 in its Bryah Basin project has returned assays of up to 60.63% iron with low impurities. This work has identified a 80m by 40m zone of surface iron enrichment.
Equinox Minerals’ (ASX:EQN) maiden auger drilling at the Rio Negro prospect in Bahia, Brazil, has returned up to 6085ppm TREO in clays. This confirms that high-grade REE mineralisation is present and in line with other high-grade clay intercepts in the region.
James Bay Minerals (ASX:JBY) has unearthed a pegmatite dyke about 60m long and 15m wide at its outcropping portion with strongly elevated lithium readings within its Aqua property.
Legacy Minerals’ (ASX:LGM) geochemistry and geophysics work has outlined a new untested 5km2 palladium-platinum target at Fontenoy that has demonstrated the highest grade rocks and soils to date.
NickelX (ASX:NKL) is changing its name to Strata Minerals to reflect its change of focus from nickel to uranium, rare earths and gold. Its top priority will be exploring the highly prospective Elliot Lake uranium project in the Canadian territory of Ontario.
Pantera Minerals (ASX:PFE) has added an additional ~3700 acres to its lithium brine project in the prolific Smackover Formation, boosting its total landholding to an impressive 25,998 net acres.
Pure Hydrogen’s (ASX:PH2) zero emissions vehicle business has taken another step forward with the sale of a hydrogen fuel cell powered Taurus prime mover to Victoria’s largest regional urban water corporation Barwon Water.
Riversgold (ASX:RGL) has more than doubled the porphyry footprint at its Northern Zone project after aircore drilling tagged basement geology. The porphyry mineralisation remains open in multiple directions and requires further testing.
Torque Metals (ASX:TOR) has resumed drilling at its Paris gold project in WA’s Goldfields region with the goal of infilling and extending existing gold lodes ahead of a maiden resource estimate.
Metallurgical testing conducted by ANSTO for Viridis Mining & Minerals (ASX:VMM) has returned world-leading recoveries of 76% NdPr and 65% DyTb. Exceptional recoveries have also been achieved using just a fifth of the leaching reagents, which can lower both Capex and Opex.
At Stockhead, we tell it like it is. While Anax Metals, Anson Resources, CuFe, James Bay Minerals, NickelX, Pantera Minerals, Pure Hydrogen, Riversgold, Torque Metals and Viridis Mining & Minerals are Stockhead advertisers, they did not sponsor this article.
