Rise and Shine: What you need to know before the ASX opens
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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.
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.
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:
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%
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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:
— HotCopper (@HotCopper) May 2, 2019
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|
|DHR||Dark Horse Resources Ltd||0.006||50%||$11,900,000||1.3M|
|VPR||Volt Power Group Ltd||0.002||50%||$12,400,000||205.1k|
|QFY||Quantify Technology Holdings L||0.009||50%||$8,800,000||20.8M|
|KDR||Kidman Resources Ltd||1.87||45%||$757,000,000||33.9M|
|MAU||Magnetic Resources NL||0.08||36%||$61,100,000||1.0k|
|PWN||Parkway Minerals NL||0.004||33%||$2,400,000||2.0M|
|GPR||Geopacific Resources Ltd||0.02||31%||$44,100,000||374.0k|
|TBH||Betmakers Holdings Ltd/The||0.06||30%||$12,800,000||256.1k|
|DDT||DataDot Technology Ltd||0.009||29%||$7,300,000||4.0M|
|NGY||NuEnergy Gas Ltd||0.014||27%||$20,700,000||205.8k|
|DW8||Digital Wine Ventures Ltd||0.005||25%||$3,900,000||2.5M|
|GTE||Great Western Exploration Ltd||0.005||25%||$4,800,000||1.0M|
|TYX||Tyranna Resources Ltd||0.005||25%||$4,700,000||1.8M|
|AMB||Ambition Group Ltd||0.08||23%||$5,100,000||200.0k|
|OSL||OncoSil Medical Ltd||0.06||21%||$39,700,000||5.9M|
|TLG||Talga Resources Ltd||0.63||20%||$136,700,000||693.9k|
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|
|DME||Dome Gold Mines Ltd||0.15||-36%||$41,100,000||57.3k|
|IBN||Ibuynew Group Ltd||0.03||-33%||$697,000||85.4k|
|ATL||Apollo Tourism & Leisure Ltd||0.64||-25%||$120,100,000||2.2M|
|ROG||Red Sky Energy Ltd||0.003||-25%||$3,300,000||8.0k|
|PCH||Property Connect Holdings Ltd||0.003||-25%||$2,100,000||206.7k|
|CFE||Cape Lambert Resources Ltd||0.012||-25%||$12,200,000||1.1M|
|HAV||Havilah Resources Ltd||0.18||-20%||$39,300,000||653.9k|
|PCL||Pancontinental Oil & Gas NL||0.002||-20%||$10,800,000||2.8M|
|IP1||Integrated Payment Technologie||0.02||-20%||$4,200,000||300.0k|
|AMI||Aurelia Metals Ltd||0.61||-19%||$525,100,000||33.7M|
|LNY||Laneway Resources Ltd||0.009||-18%||$33,100,000||41.9M|
That’s all you need to know. Happy Friday.