• The ASX 200 gains 0.2%  
  • Small caps end slightly lower 
  • The hunt for red (ETF) September

 

The ASX 200 has made a decent fist of Thursday, rebounding in its own way and ending the session 0.2% higher. The energy sector led gains again.

The ASX Emerging Companies index (XEC) has closed 0.3% down.

We’re still recovering here at Stockhead central after Nadine McGrath chased the money overnight, in search of the invisible hand behind some ~$830 million of outflows in iShares Core S&P/ASX 200 ETF (ASX:IOZ).

That’s thought to be the No 1. single biggest trade in Australian ETF history.

Industry assets under management (AuM) fell 0.2% (-$0.3 billion) month on month, ending August at $130 billion, but BetaShares said the figures were distorted by a “particularly large outflow in a single Australian Shares ETF”.

“The month’s figures were impacted significantly by very large outflows in a broad Australian ETF from iShares, which recorded net outflows of >$1B for the month,” the report noted.

“It appears as though the vast majority of these outflows came from a single institutional client in what we believe to be the single largest trade in Australian ETF history.

Markets consultant Mark Wills says consolidation within the superannuation market is the tell for this one.

“For example Sunsuper and QSuper merged earlier this year to create Australian Retirement Trust with more than $200 billion in retirement savings under management, the size and scale of  trades in Australia’s equity ETFs is likely to get bigger,” he said.

“The size of this trade suggests it’s probably held by a super fund and not an asset manager and so the destination for proceeds from that redemption could be anything from a panel of Australian long-only active managers or another asset class.”

Six Park co-founder Patrick Garrett adds that investors have been “jumping at shadows” trying to unpack exactly what this trade means – “not knowing the who or the why.”

“The main thing that actually jumps out to me is the trade demonstrates how well liquidity works with these established ETFs.”

Meanwhile, US equity futures have made tentative steps forward, all slightly ahead before the Thursday session begins in new New York after Wall Street ended last night’s choppy session modestly higher.

The Nasdaq Composite leading gains with 0.7% win.

Josh Chiat reports, Westpac IQ has upped its end of year coal forecast yet again as prices continue to climb to new record highs.

Thermal coal prices have been knocked up 21.4% to US$425/t for the end of 2022 by the big bank’s research team. Bear in mind they had never been above US$194/t until September last year.

Met coal prices have also been revised upwards by 13.4% to US$240/t, still eating an unusual US$150+ discount to its typically cheaper cousin.

Local investors responded too.

Whitehaven Coal (ASX:WHC), New Hope Corp (ASX:NHC), Terracom (ASX:TER) and Bowen Coal (ASX:BCB) all gained well over 4% by lunchtime.

While Josh notes Coronado (ASX:CRN) was the standout performer, up over 9% to $1.85.

 

ASX SMALL CAP WINNERS

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Auroch Minerals (ASX:AOU) has had a stunning Thursday at home after talking up the prospects of its 80% owned Nevada Lithium Project (NLP) in Nevada, USA.

AOU says senior management conducted a site visit in late June / early July which included field visits to further assess the geology of the key prospect areas, together with meeting key stakeholders while its in-country team has sorted thorough historic data confirming the “high prospectivity for significant sedimentary-hosted lithium mineralisation.”

AOU’s NLP comprises a large area that is considered highly prospective for large sedimentary-hosted lithium deposits across four prospect areas – Traction Prospect, San Antone Prospect, Heller Prospect and Lone Mountain Prospect – all located close to the mining town of Tonopah in the mining-friendly Nevada counties of Nye and Esmeralda.

The region is already a happy hunting ground to some very large sedimentary-hosted lithium deposits including Ioneer Resources’ (ASX:INR) Rhyolite Ridge Project.

Gregor has been on Intelicare Holdings (ASX:ICR) watch today after the medtech jumped more than 55% this morning for no apparent reason.

“It’s a remarkable turnaround that’s brought ICR out of the ICU – the company was trading at just $0.025 on Tuesday at the tail end of an inglorious slump from highs of $0.10 in April this year,” he said.

Elsewhere Pacific Nickel Mines (ASX:PNM) has climbed past $0.10 this morning with a more than 28% gain after securing a green light for mining at the Kolosori Nickel Project on Isabel Island in the Solomon Islands from the Minister of the Ministry of Mines, Energy and Rural Electrification.

The company has also entered into a Surface Access Rights Agreement with landowners and a Mining Agreement with the Government of the Solomon Island – which sets out the mining, environmental and fiscal terms for the project.

“This is a major achievement for the company, and we welcome the support of the national, Isabel provincial governments and landowners to develop the Kolosori Nickel Project,” CEO Geoff Hiller said earlier.

“Now that we have been awarded a Mining Lease, it allows the company to begin progressing development operations for Kolosori.”

The plan is to complete the Definitive Feasibility Study (DFS) for the project, expedite the wharf and haul road construction and establish a construction camp.

This should allow the project to ramp up to full production of around 1.3 million wet metric tonnes per annum of direct shipping nickel ore during 2023.

 

ASX SMALL CAP LAGGARDS

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Lake Resources (ASX:LKE) is being taken to the cleaners for a second straight day in the wake of news about a blue with partner Lilac Solutions over pre-determined milestone at its Kachi Pilot Plant.

Shares in LKE were 11% down at 3.30pm, adding to the double digit losses of Wednesday.

 

A FEW WHICH MAY’VE SLIPPED THROUGH TODAY

Cohiba Minerals (ASX:CHK) has turned in a disappointing result after spending a while poking around at Warriner Creek.

According to the company, while it did find some minor rare earth anomalism in Warriner Creek East, and the same with a side of copper in Warriner Creek West, it’s not enough to warrant progressing the project any further at this stage.

The Warriner Creek East results look like this:

  • 2m @ 1,532ppm TREO from 504 – 506m.
  • 15m @ 853ppm TREO from 597 – 612 m including 2m @ 1,014ppm TREO from 604m.

The Warriner Creek West results look like that:

  • 1m @ 0.93% Cu from 128 – 129m.
  • 2m @ 1,053ppm TREO from 139 – 141m.

Cohiba says it’s not really worth pressing the issue any further, and has notified Tigers Dominion Group that it doesn’t plan to progress the farm-in agreement, having met the initial round of conditions. Better luck next time, guys. 

Meanwhile, what’s better than a new CEO? How about appointing two people to share the job, as Cluey (ASX: CLU) says it’s done. It’s just one of a handful of changes at Cluey, leading off with the departure of current Chief Product Officer, Michael Allara.

Cluey has appointed Mark Rohald has been appointed as Executive Deputy Chairman, with Matteo Trinca and Trevor McDougall slotting in to inhabit the throne as Joint Chief Executive Officers. 

 

TRADING HALTS

Kula Gold (ASX:KGD) – capital raise

Energy One (ASX:EOL) – capital raise

Tamboran Resources (ASX:TBN) – capital raise

Charger Metals (ASX:CHR) – capital raise

InhaleRX (ASX:IRX) – capita raise

Anson Resources (ASX:ASN) – capital raise

Atrum Coal (ASX: ATU) – capital raise

Hydrix (ASX:HYD) – Entitlement Offer. From outta nowhere… Cap Raise, Cap Raise, Cap Raise and then BAM! Entitlement Offer. It’s a twist ending even M. Night Shia LeBeouf could be proud of.

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