Rise and Shine: What you need to know before the ASX opens

Picture: Getty Images

On Stockhead today, S2 Resources’ Mark Bennett tells us the secret to finding big deposits, why Australia won’t get knocked off by a “lithium cartel”, and coal is… killing it in 2019.

But first, here’s what you need to know about the day ahead.

The day ahead in data

Not a great deal today. The Australian Bureau of Statistics is dropping data on building permits.

The US Federal Reserve maintained an easy bias toward interest rates and there were some strong jobs numbers, but a slowdown in manufacturing activity.

At home May started positively, with momentum propelled by the banks, including ANZ rallying 2.8 per cent on expectations beating half year numbers.

Company news

No companies have shares coming out of escrow today.

The following nine companies are due out of a trading halt in the next two business days:

Friday:

Tando Resources (ASX:TNO) – scoping study
GBM Resources (ASX:GBZ) – capital raising
Kingston Resources (ASX:KSN) – capital raising
Wattle Health (ASX:WHA) – proposed acquisition update
Peninsula Mines (ASX:PSM) – capital raising
Emu (ASX:EMU) – capital raising

Monday:

Magnetite Mines (ASX:MGT) – capital raising
Alto Metals (ASX:AME) – capital raising
Fenix Resources (ASX:FEX) – potential transport joint venture

Commodities

Gold: $US1271.77 ($1,817.10) -0.44%

Silver: $US14.62 -0.31%

Oil (Brent): $US70.46 -2.45%

Oil (WTI): $US61.58 -3.10%

Coal: $US88.35 +0.63%

Iron ore 62pc fe: $US93.65 +0.44%

AUD/USD: $US0.6999

Want this headstart in your inbox every morning at 8am? Go on. Subscribe here. It’s free

What got you talking yesterday

A story on ASX small caps that have gained 100 per cent or more since the start of the year was generating chat on the Stockhead Facebook chat forum.

Member Fidz Fidz: “Resource stocks aren’t going anywhere. Copper, nickel, cobalt my 3 picks for next movers.”

These were the five most-discussed stocks on trading gossip forum HotCopper at close on Thursday:

Close Top 5 #MostDiscussedStocks: $KDR $PLS $GXY $Z1P $AMI #asx #ausbiz https://t.co/xOFzWm2Yj0

— HotCopper (@HotCopper) May 2, 2019

Subscribe to our daily newsletter
Join our small cap Facebook group
Follow us on Facebook or Twitter

Yesterday’s winners

All the talk was about Kidman Resources (ASX:KDR), which was the subject of a mega $776 million takeover offer from Wesfarmers (ASX:WES). Kidman was worth about $522 million prior the announcement and had more than $200 million added to its market cap before lunch. Not too bad.

Wesfarmers, which most people know as the owner of Bunnings, Officeworks, Kmart, Target and formerly Coles, is after Kidman because of its 50 per cent holding of the Mt Holland lithium project in Western Australia, which needs about $600 million to get up and running in 2022.

Kidman is in favour of the bid. Its shares rose 45 per cent to $1.87 at close.

Microcap Quantify Technology (ASX:QFY) had a 50 per cent jump in shares to 0.9c on news it had appointed Taiwanese manufacturer CASwell to manufacture the company’s IoT product suite for both domestic and international markets.

The initial production run commences now, with first items expected to be delivered to Australia in July 2019.

Talga Resources (ASX:TLG) rebounded 20 per cent to 63c at lunch, after falling 27 per cent to 52c at close yesterday on the back of its quarterly report.

Managing director Mark Thompson described it as “another highly successful quarter”, so perhaps shareholders overreacted.

ASX code	Company name	Price	% Chg	Market cap	Volume
AER	Aeeris Ltd	0.12	33%	$6,800,000	120.4k
AMB	Ambition Group Ltd	0.08	23%	$5,100,000	200.0k
DDT	DataDot Technology Ltd	0.009	29%	$7,300,000	4.0M
DHR	Dark Horse Resources Ltd	0.006	50%	$11,900,000	1.3M
DW8	Digital Wine Ventures Ltd	0.005	25%	$3,900,000	2.5M
GPR	Geopacific Resources Ltd	0.02	31%	$44,100,000	374.0k
GTE	Great Western Exploration Ltd	0.005	25%	$4,800,000	1.0M
KDR	Kidman Resources Ltd	1.87	45%	$757,000,000	33.9M
MAU	Magnetic Resources NL	0.08	36%	$61,100,000	1.0k
NGY	NuEnergy Gas Ltd	0.014	27%	$20,700,000	205.8k
OEX	Oilex Ltd	0.004	33%	$10,300,000	91.0k
OSL	OncoSil Medical Ltd	0.06	21%	$39,700,000	5.9M
POH	Phosphagenics Ltd	0.004	33%	$6,300,000	2.0M
PWN	Parkway Minerals NL	0.004	33%	$2,400,000	2.0M
QFY	Quantify Technology Holdings L	0.009	50%	$8,800,000	20.8M
TBH	Betmakers Holdings Ltd/The	0.06	30%	$12,800,000	256.1k
TLG	Talga Resources Ltd	0.63	20%	$136,700,000	693.9k
TYX	Tyranna Resources Ltd	0.005	25%	$4,700,000	1.8M
VPR	Volt Power Group Ltd	0.002	50%	$12,400,000	205.1k

Yesterday’s losers

Dome Gold Mines (ASX:DME) had a 36 per cent fall, to 15c, though it had no news out.

Apollo Tourism & Leisure (ASX:ATL) shares were slashed by 25 per cent, to 64c, after telling investors its profit for the 2019 financial year would be 27 per cent lower than it forecast when it released its half-year results back in February.

At the time, Apollo said FY19 profit could be as high as $24 million, but now it says the maximum will be $19.5 million, which is only a sliver more than the $19.2 million it made in FY18.

ASX code	Company name	Price	% Chg	Market Cap	Volume
ADD	Adavale Resources Ltd	0.002	-80%	$222,000	1.0k
ADV	Ardiden Ltd	0.002	-50%	$3,400,000	4.9M
AMI	Aurelia Metals Ltd	0.61	-19%	$525,100,000	33.7M
ATL	Apollo Tourism & Leisure Ltd	0.64	-25%	$120,100,000	2.2M
CA8	CoAssets Ltd	0.11	-21%	$22,600,000	18.4k
CFE	Cape Lambert Resources Ltd	0.012	-25%	$12,200,000	1.1M
DME	Dome Gold Mines Ltd	0.15	-36%	$41,100,000	57.3k
HAV	Havilah Resources Ltd	0.18	-20%	$39,300,000	653.9k
IBN	Ibuynew Group Ltd	0.03	-33%	$697,000	85.4k
IP1	Integrated Payment Technologie	0.02	-20%	$4,200,000	300.0k
LNY	Laneway Resources Ltd	0.009	-18%	$33,100,000	41.9M
MTC	MetalsTech Ltd	0.014	-18%	$1,600,000	919.2k
PCH	Property Connect Holdings Ltd	0.003	-25%	$2,100,000	206.7k
PCL	Pancontinental Oil & Gas NL	0.002	-20%	$10,800,000	2.8M
ROG	Red Sky Energy Ltd	0.003	-25%	$3,300,000	8.0k
SRO	Shareroot Ltd	0.002	-25%	$2,400,000	14.8M
T3D	333D Ltd	0.001	-33%	$881,000	3.0M
TOM	Tomizone Ltd	0.004	-43%	$1,700,000	165.0k
UTR	Ultracharge Ltd	0.004	-20%	$3,800,000	1.7M