Closing Bell: When local markets are behaving like pussy cats, Victory is all that matters

• ASX200 weakens in arvo trade
• ASX small caps index sheds 0.3%
• Victory Goldfields is really, really winning REE

Just ahead of the close on Thursday, the S&P/ASX 200 was doing its best to shake off a decent session, despite most sectors treading water in or around  the green.

The S&P/ASX Emerging Companies (XEC) index was down about 7 points, or 0.3% at 3.30pm in Sydney.

This is where the XEC sits coming into the Christmas period.

A tough 12 months to November 17, but clawing its plucky way back.

Ahead of the wall Street open tonight, US futures at 3.45pm in Sunny but silly Sydney are ever so slightly higher shrugging off the bearish leads coming out of Asia after retailing giant Target (not our Target) muffed its lines and delivered an ugly profit warning.

Australia’s jobless rate is still looking for a bottom near or near enough to 3.4% according to the latest unemployment numbers out of the Bureau of Overworked Number Crunchers.

Also notable – an encouraging jump in hours worked last month, something which likely adds some ballast to the idea that the Reserve Bank of Australia will offer us up another fair-to-middling rate hike of  just 25-basis-points when they next meet in the underground nuclear bunker at Martin Place in a few weeks.

Always ready to hedge its bets, HSBC reckons there’s still a good chance that the bank will keep hoisting  the official cash rate well into next year.

“We see the RBA hiking by 25bp in December,” the bank said in a note earlier today. “The risk is also rising that the RBA may have to continue to hike further in early 2023.

“However, our central case is that by February, the global slowdown, fall in global inflation and impact of the RBA’s significant and rapid monetary tightening will be feeding through more clearly local activity and price indicators, allowing the RBA to pause.”

Over at CBA, the view remains that the RBA will raise the cash rate by a further 25bp to 3.10% at the December hoedown.

“A strong set of numbers that rubber stamp another 25bp rate hike in December,” chief economist Gareth Aird said.

“The headline numbers in the October labour force survey were strong. The increase in employment of 32.2k was larger than the consensus (+15k; CBA on consensus).

“The challenge now for the RBA is to cool demand in the economy such that the labour market loosens a little, but not too much.”

RBA Deputy Governor Michele Bullock clearly stated the RBA’s plan last week.

“What we are trying to achieve here is keep those gains in employment that we have achieved. The unemployment rate will have to rise, the economy does have to slow, but we think that we can, hopefully, bring the inflation rate back down to that target band,” Bullock said.

Meanwhile, IMF chief Kristalina Georgieva has told CNBC absolutely nothing insightful, but it’s worth repeating because the IMF annoys me.

Apparently the war in Ukraine will be the “single most important negative factor” for the world economy this year, and likely the next Georgieva said, really sticking her neck out this time.

ASX SMALL CAP LEADERS

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Not a name which inspires confidence, but Mt Monger Resources (ASX:MTM), is pulsating through Thursday, adding 45% before lunch and still hot at +20% after ripping into some rare earth element (REE) mineralisation at the Pt Kidman prospect near Laverton, WA.

The Mongers have hit some juicy drilling intercepts that look just like this:

• 22ELAC048 – 8m @ 1,467ppm TREO, from 22m & 5m @ 1,427ppm TREO, from 31m

• 22ELAC043 – 6m @ 1,880ppm TREO, from 12m

• 22ELAC023 – 3m @ 1,577ppm TREO, from 23m & 2m @ 1,191ppm TREO from 33m

• 22ELAC003 – 2m @ 1,806ppm TREO, from 27m

• 22ELAC046 – 1m @ 2,107ppm TREO, from 16m

The high value Nd+Pr oxides represent an average of 19% of TREO grade, the high value magnet rare earth oxides represent an average 24% of TREO grade. Additionally, critical rare earth oxides (CREO) average 23% of TREO, and the heavy rare earth oxides represent an average of 12% of TREO grade.

CAQ Holdings (ASX:CAQ). Not the biggest fish in the pond. But I always like to see this shape.

Victory Goldfields (ASX:1VG) is up about 25%. 1VG is really starting to get traction at its emerging rare earths discovery in WA’s Cue mining district, with drilling announced for its alkaline intrusion prospect.

The discovery a few months ago of the alkaline intrusion was a big deal, given experts view these geological features as the “engine rooms” for rare earth elements and critical metals.

Drilling is now set to begin at the target with three holes to a combined depth of 980m to be drilled after the completion  of a 100m by 100m, 441 station gravity survey.

It comes off the back of a highly successful drill drive at its North Stanmore clay rare earths discovery, where an extra 10,000m aircore drill drive has been sanctioned after a 118-hole aircore drill program returned grades at an average 1014ppm total rare earths oxides.

The alkaline intrusion is located just 1km from the ionic clay discovery by Victory which boasted REE grades of up to 9746ppm or 0.97% total rare earths oxides.

That included high ratios of magnet metals neodymium, praseodymium, dysprosium and terbium (18.6% of the total) with a heavy to total rare earths ratio averaging 34%.

It’s been a terrific week in the game for victory so far.

ASX SMALL CAP LAGGARDS

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ASX ANNOUNCEMENTS YOU MAY’VE MISSED TODAY

Under the radar, Moho Resources (ASX:MOH) has clocked anomalous lithium within its Burracoppin project in WA’s Central Wheatbelt region that is prospective for gold and rare earths.

The company’s preliminary geochemical review identified anomalous lithium in soils and streams which are reinforced by soils and streams anomalous in caesium, rubidium, beryllium and niobium.

These elements are present within many lithium-caesium-tantalum (LCT) pegmatites.

MOH also noted a strong spatial relationship between lithium and niobium in soils, which has resulted in the identification of new areas potentially anomalous for lithium that are yet to be tested.

“The geochemical evaluation of the soil and stream surveys has established significant lithium and REE prospectivity for the company to follow up at the Burracoppin project,” managing director Ralph Winter said.

“Moho’s exploration strategy is opening up new avenues for greater value creation for our shareholders, with the forecast demand for critical minerals expected to be strong for many years to come.”

TRADING HALTS

Desert Metals (ASX:DM1) – Capital Raise
Synergia Energy (ASX:SYN) – Synergia’s called time on its stay on the ASX, with an application to be removed from the official list
Kin Mining (ASX:KIN) – In more upbeat news, Kin’s got an exploration announcement in the wings. Huzzah!