Lunch Wrap: ASX slips ahead of RBA call; DroneShield soars, Mount Ridley doubles

• ASX dips ahead of RBA call tomorrow
• Bank stocks rise as health and property sectors stumble
• DroneShield rockets on $25m Latin deal

The ASX was wobbling around lunchtime on Monday, down roughly 0.2%, as traders tried to find their footing ahead of tomorrow’s RBA meeting.

Before that, Wall Street handed over a mixed but confident lead.

On Friday, the Dow, S&P 500 and the Nasdaq posted modest gains, but enough to seal a seventh straight winning month for the US stock market, the longest streak since the Covid era.

Back home this morning, the local bourse took a hit from the health and property sectors.

The healthcare sector sagged as ResMed (ASX:RMD) tumbled more than 4%, giving back last week’s gains.

Real estate names didn’t fare much better.

With CPI data running hot and traders dumping any last hope of a Cup Day rate cut, rate-sensitive stocks like Goodman Group (ASX:GMG)  and Stockland (ASX:SGP) were dragged lower.

Ironically, the rate jitters helped the banks today.

Higher-for-longer rates mean fatter margins (at least in theory), and with Westpac (ASX:WBC)’s earnings report out this morning, the Big Four found some love.

Westpac’s full-year profit slipped 2% to $6.97 billion, but still managed to beat expectations.

Margins edged down one basis point to 1.94%, as “persistent competition” chewed into lending spreads. But traders didn’t mind, it’s a solid, boring result in a market that’s craving stability. Shares up 2%.

Oil prices, meanwhile, got a tailwind after OPEC+ announced a pause on output hikes next quarter.

Woodside Energy Group (ASX:WDS) and Santos (ASX:STO) were both up about 1%.

Among other large cap movers, DroneShield (ASX:DRO) was flying high, up 5% after winning a $25.3 million contract from a Latin American defence reseller.

Dronshield has quietly built a reputation as one of the go-to counter-drone names globally. CEO Oleg Vornik said the deal cements DroneShield as a preferred supplier in the region, and he’s not wrong — it’s their biggest Latin order to date.

Healthco Healthcare and Wellness REIT (ASX:HCW) jumped 10% after finally collecting all the back rent owed by Healthscope. Investors love a comeback story, even if it’s just the tenant paying their overdue bills.

And, Domino’s Pizza Enterprises (ASX:DMP) rose 2% after offloading its printing arm, Impressu, to IVE Group for $13.5 million. Jack Cowin called it part of the “simplify and focus” strategy; or in plain English, sticking to pizza.

ASX LEADERS

Today’s best performing stocks (including small caps) intraday:

Shares in Mount Ridley Mines (ASX:MRD) more than doubled after it appointed Allister Caird as CEO, effective 6 November. Caird is a seasoned geologist with 15 years in exploration, research and capital markets, most recently heading up critical minerals at Locksley Resources (ASX:LKY) where he helped strike a key US partnership with Rice University.

The move sharpens Mount Ridley’s technical and strategic edge as it pushes ahead with its rare earth and gallium projects in the Esperance region, and builds global ties across the critical minerals space.

Bellavista Resources (ASX:BVR) has named Glenn Jardine as Managing Director and Peter Canterbury as Finance Director – the same team that steered De Grey Mining through the discovery of Hemi and its $6 billion takeover by Northern Star earlier this year. It’s a serious upgrade in horsepower.

Jardine is a 35-year industry veteran with stints across LionOre, Azure and Goldfields, while Canterbury handled the numbers at De Grey from 2021 to the deal’s completion.

Locksley Resources (ASX:LKY) has received a Letter of Interest from the U.S. Export-Import Bank for potential financing support of up to US$191 million for its Mojave Project in California.

The move positions Mojave as a flagship under Washington’s push to rebuild a domestic antimony and rare earths supply chain. It’s also a key first step toward broader US government funding through the Defense Production Act.

Locksley recently produced its first American-made antimony ingot, and will head to Washington this month to advance talks on its mine-to-market strategy.

Western Yilgarn (ASX:WYX) has expanded its Ida Holmes Junction Project in WA, adding two new exploration licences covering 230km² to chase more high-grade gallium.
Recent rock chip samples from the area returned standout grades (up to 195.5g/t gallium), confirming the system remains open in all directions.

It’s also signed a land access deal at the nearby Lode 200 bauxite zone, clearing the way for drilling over a 62.2Mt resource. Fieldwork and helicopter reconnaissance kick off this month as it looks to extend its gallium footprint.

ASX LAGGARDS

Today’s worst performing stocks (including small caps) intraday:

IN CASE YOU MISSED IT

Western Yilgarn (ASX:WYX) is stepping up its gallium hunt in WA, adding two new licences that expand its Ida Holmes Junction asset.

Bayan Mining and Minerals (ASX:BMM) is preparing 3D gravity and magnetic models for five REE target zones at its Desert Star project ahead of drill testing.

TinyBeans (ASX:TNY) has struck an all-stock deal to acquire US-based digital journaling platform Qeepsake.

Auravelle Metals (ASX:AUV) has extended gold mineralisation at its Sheoak prospect, part of the Nuckulla Hill project in South Australia.

GoldArc Resources (ASX:GA8) has kicked off a 3000m drilling program to test multiple high-priority prospects at Leonora South in WA.

LAST ORDERS

Mount Ridley Mines (ASX:MRD) has welcomed former Locksley Resources (ASX:LKY) head of critical minerals Allister Caird as CEO, effective November 6. Management says the appointment strengthens the company’s technical and strategic capabilities as it advances its rare earth and critical minerals portfolio across the Esperance region of WA.

Medallion Metals (ASX:MM8) has advanced the Ravensthorpe gold project to the final stage of assessment under the EPBC act. Approval under the environmental protection act is a key approval required to progress MM8’s sulphide production strategy.

St George Mining (ASX:SGQ) has welcomed Marine Spinola to its in-country team in Brazil, supporting the company’s efforts to advance the Araxá rare earths-niobium project in the state of Minas Gerais.

Spinola has more than 25 years’ leadership experience in advising and mentoring on corporate strategy for sustainability, social development and institutional relations through her position as executive director at the Dom Cabral Foundation as well as through various board positions with companies in Brazil.

At Stockhead, we tell it like it is. While Mount Ridley Mines, Medallion Metals and St George Mining 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.