Lunch Wrap: NAB culls 400, lithium stocks smoked as China flicks the switch

• ASX clings to green as banks swing the axe
• Lithium smashed after China flicks the switch
• Iluka tanks on mineral sands slump

By Wednesday lunchtime in the east, the ASX was just about keeping its nose above water, up by around 0.2%.

Overnight, Wall Street served up another session of record highs, where the Dow, S&P 500 and Nasdaq all climbed.

On the ASX, the banks were where the action is this morning.

National Australia Bank (ASX:NAB) jumped 1.5% after telling more than 400 staff they’d no longer be required, just a day after ANZ swung the axe on 3,500 jobs.

The Finance Sector Union called it “shameful,” saying the banks had betrayed workers and families while pocketing billions in profit.

Westpac (ASX:WBC) and Australia and New Zealand Banking Group (ASX:ANZ) joined the rally, each adding about 1.5%, too.

The mining sector, meanwhile, was down almost 2% by lunch, with lithium names absolutely gutted.

Pilbara Minerals (ASX:PLS) was down 15%, Liontown Resources (ASX:LTR) plunged over 16%, and IGO (ASX:IGO)’s bleeding 13%. These aren’t paper cuts; they’re open-heart surgery.

Lithium got smoked after word out of China that CATL’s mine, the one that had been shut since August and helped juice prices, is firing back up.

Investors had been cheering tighter supply, but the moment Beijing flicked the switch back on, that fantasy went out the window.

In other large caps news, Iluka Resources (ASX:ILU) plunged around 13% after announcing it will mothball its mineral sands Cataby mine in WA from December for about a year.

The reasons given? “Subdued demand” and “weak global activity”.

ASX LEADERS

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

Metal Bank (ASX:MBK) is bulking up its WA gold play. It’s struck a non-binding deal to pick up Hastings’ gold assets, including the Whiteheads project near Kalgoorlie, in a $2.3m all-scrip deal, pending shareholder and ASX approvals. At the same time, it’s running a scoping study at its Livingstone project, where the Kingsley and Homestead deposits already carry JORC resources. Once the deal closes, Hastings’ Tim Gilbert will step in as MBK’s new CEO, with Charles Lew joining the board.

EV Resources (ASX:EVR) has locked in $4.75m and up to $5.5m via a placement, with a chunk of that tied to finalising an ore sales deal with Locksley Resources. The cash will go straight into pushing ahead its Los Lirios and newly acquired Dollar Antimony projects, including drilling and development studies. EVR also just grabbed full ownership of the high-grade Dollar Antimony project in Nevada, giving it a foothold in a US critical minerals hub with assays hitting up to 40% antimony.

Haranga Resources (ASX:HAR) has struck some eye-catching gold hits at its maiden drilling program in Senegal. Results from Ibel South include broad, shallow, high-grade zones like 20m at 6.54g/t from just 12m. The assays confirm strong potential in a major gold district, while further drilling will test extensions and untouched anomalies. For now, Haranga’s also shifting focus to its permitted Lincoln Gold Project in California, which already carries a historical resource of 286,000oz at 9.3g/t.

ASX LAGGARDS

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

IN CASE YOU MISSED IT

Everest Metals Corporation (ASX:EMC) starts RC and diamond drilling at Mt Edon in Western Australia, hoping to grow the rubidium resource.

Terra Metals (ASX:TM1) has put the drill bit to ground at the Dante project in a bid to unlock untapped, regional-scale potential.

Ariana Resources hits the ASX boards today with a rare mix of production, a history of dividends and deep value.

LAST ORDERS

Stellar Resources (ASX:SRZ) has welcomed an increase in its shareholding by Nero Resource Fund, a substantial holder. Nero has snapped up more than 200 million additional SRZ shares in an options exercise in return for just over $3.25 million, bringing its total interest in the company to 18.13%.

At Stockhead, we tell it like it is. While Stellar Resources is a Stockhead advertiser, it did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.