• ASX 200 halves gains on the run home 
  • Small cap index closes about 0.7% higher
  • Tinkler takes more Jameson, shares jumps 50%

 

Up strongly this morning following some epic 90’s style US leads on Friday…

…the benchmark ASX200 is giving it away, giving it away, giving it away (now).

Also jumping out of the blocks and fading into (you) Monday is the small caps XEC index, ahead by about 0.7%; about half what it was early in the am.

Investors were fixated on central banks for most of last week as the triple threat of the RBA, Fed, and BoE all took a spike to interest rates rather closely aligned to what most expected.

Late on Friday in the States Wall Street suddenly had a markets moment over a solid non-farm read and the hints out of Beijing that zero-COVID might in fact be a bridge too far.

James Gerrish at Market Matters says the bench-pressing USD ‘was literally dumped after US jobs data came in stronger than expected.’

“But it also showed signs that things were deteriorating under the surface raising hopes the Fed might ease back on its monetary tightening e.g. The $A rallied +2.9% and the Euro +2.1%.

“Two of the numbers that caught traders’ attention were unemployment rising from 3.5% to 3.7% and equally important wage inflation dropping from 5% to 4.7%,” Gerrish added.

Wall Street ended with the major three indices ahead by almost 1.5%.

Meanwhile, we’ve got some resurgent resources here at home – oil is surging, moving as much as 5% higher over the last 24 hours (US Nymex in particular).

Iron ore (futures are way ahead) is trying to soar and gold (on a roll) has stopped being sold. The Materials Sector found almost 4% and  in fact the old goldies were right up there alongside the very best of Monday. Gold Road (ASX:GOR) and and Evolution Mining (ASX:EVN) both gained more than 7% before lunch.

 

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 COMPANY PRICE % TODAY VOLUME MARKET CAP
JAL Jameson Resources 0.1 54% 1,309,236 $22,633,215
DMM Dmc Mining 0.15 50% 694,263 $2,870,000
NOV Novatti Group Ltd 0.26 41% 6,122,712 $62,257,221
KNM Kneomedia Limited 0.025 39% 9,206,875 $24,225,798
TKM Trek Metals Ltd 0.088 38% 16,691,562 $19,879,050
AQI Alicanto Min Ltd 0.052 37% 5,461,305 $15,679,317
SIX Sprintex Ltd 0.026 37% 151,000 $4,832,732
WR1 Winsome Resources 1.005 36% 20,401,777 $99,984,356
PRM Prominence Energy 0.002 33% 458,386 $3,636,913
CHR Charger Metals 0.575 31% 1,754,092 $19,186,655
BML Boab Metals Ltd 0.305 27% 3,187,885 $36,838,446
XTC Xantippe Res Ltd 0.0075 25% 17,547,843 $48,871,379
FLN Freelancer Ltd 0.3 25% 132,023 $108,293,306
DXN DXN Limited 0.005 25% 728,000 $6,885,259
MTH Mithril Resources 0.005 25% 2,420,299 $11,760,932
CLA Celsius Resource Ltd 0.012 20% 7,894,002 $15,028,290
JAT Jatcorp Limited 0.012 20% 4,895,415 $24,979,518
CBL Control Bionics 0.19 19% 29,868 $8,052,945
MCM MC Mining Ltd 0.26 18% 51,603 $43,484,071
BVS Bravura Solution Ltd 0.7 17% 17,192,593 $149,012,401
ARO Astro Resources NL 0.0035 17% 772,264 $14,679,801
CTO Citigold Corp Ltd 0.007 17% 3,187,710 $17,001,955
MEI Meteoric Resources 0.014 17% 4,412,458 $18,315,568
GRX Greenx Metals Ltd 0.32 16% 44,100 $69,745,628
RSH Respiri Limited 0.043 16% 439,240 $29,645,745
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The big one here today is the Big One’s interest in Jameson Resources (ASX:JAL)

Bouncing back from his unsuccessful takeover attempt of Australian Pacific Coal (ASX:AQC) the magnetic magnate – Mr Nathan Tinkler has snapped up $10m in JAL shares at a 70% premium to the 15-day VWAP.

Tinkler, via his companies Oceltip Coal 1 and 2, will hold 19.92% of the $30m market cap met coal project developer.

JAL’s main game is the Crown Mountain steelmaking coal project in Canada, which is currently advancing through the environmental approvals and permitting process.

Reuben Adams says a 2020 BFS envisaged a “compelling high quality hard coking coal development opportunity” at production cash costs of US$93.17/t and pre-production capital US$351m.

Tinkler says there is a distinct lack of quality steelmaking coal projects that are being developed to meet long-term demand.

He’s probably right too. Steelmaking coal, according to IHS Markits is at unprecedented record prices, largely thanks to these ones:

• Continued high global steel production as key building block for postCovid global commodity economy
• Increasing cost of domestic coking coal production in China and declining production
• Declining production in existing mines in Australia, Canada, USA
• Major global producers unlikely to progress greenfield development due to regulatory, financing and stakeholder challenges
• Financing challenges for new coal developments
• Approval challenges and delays for new projects in all jurisdictions, particularly major production areas of Australia, USA and Canada

Via IHS

Meanwhile Tinkler says the Elk Valley Coal Measures in British Columbia, where Crown Mountain is located, rank alongside the Moranbah Coal Measures in Queensland’s Bowen Basin as two leading sources of premium low-volatile hard coking coal keenly sought by the world’s leading steelmakers.

“I have followed the progress of the development of Crown Mountain for a number of years and am very satisfied that the Jameson management team has progressed the project to being clearly one of the most advanced steelmaking coal development projects in Canada.

“Having previously worked closely with Ms Hollows and Mr Gray on the successful Middlemount Mine development, I am very confident that the Jameson Board, and the management team in Canada, has the right critical development skills to progress the permitting, financing, and development of Crown Mountain.

“The progress and premium quality of Crown Mountain provides Jameson as an ideal platform for other steelmaking coal development opportunities.”

We’re also watching Winsome Resources(ASX:WR1), which hasn’t lost some in ages after announcing a “significant pegmatite intercept” late last month at the Adina project in Canada.

All up, 160m of pegmatite was intercepted in drilling below the recently discovered, well mineralised Jamar outcrop at Adina.

Since then, the $132m market cap stock is up 160% and added a few more today.

 

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 COMPANY PRICE % TODAY Volume MktCap
AFW Applyflow Limited 0.0015 -25% 74,464 $5,915,216
AVW Avira Resources Ltd 0.003 -25% 111,000 $8,535,160
HIQ Hitiq Limited 0.06 -25% 821,028 $9,052,495
TYX Tyranna Res Ltd 0.032 -24% 95,271,065 $100,985,864
FRS Forrestania Resources 0.195 -24% 1,586,488 $12,857,054
PPY Papyrus Australia 0.04 -22% 84,582 $23,950,994
CR9 Corellares 0.024 -20% 2,520,259 $9,482,726
ADR Adherium Ltd 0.004 -20% 24,982 $23,875,978
BAT Battery Minerals Ltd 0.004 -20% 233,924 $14,626,212
NTL New Talisman Gold 0.002 -20% 20,090,399 $7,818,063
YPB YPB Group Ltd 0.004 -20% 59,149 $2,032,731
AVM Advance Metals Ltd 0.009 -18% 732,600 $5,256,651
CMO Cosmo Metals 0.14 -18% 262,573 $4,336,700
EMN Euro Manganese 0.285 -17% 264,977 $87,403,949
CAV Carnavale Resources 0.005 -17% 24,884,988 $16,401,310
GLV Global Oil & Gas 0.0025 -17% 149,686 $5,620,064
IEC Intra Energy Corp 0.005 -17% 582,700 $3,634,690
WEL Winchester Energy 0.01 -17% 83,400 $12,122,638
RCR Rincon 0.105 -16% 567,188 $7,159,818
SKN Skin Elements Ltd 0.016 -16% 2,185,334 $8,286,563
KTG K-Tig Limited 0.135 -16% 50,000 $28,977,802
MOB Mobilicom Ltd 0.0085 -15% 2,250,959 $13,312,797
HSC HSC Technology Group 0.009 -14% 262,960 $22,875,713
AOA Ausmon Resorces 0.006 -14% 335,442 $6,001,025
AUH Austchina Holdings 0.006 -14% 160,308 $14,257,829
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