• ASX200 finishes up 0.7% for the week
  • China reopens, oil rises, inflation weighs
  • Nordic Nickel rises on debut

Share markets moved ahead this week, the ASX200 ended 0.7% higher, the ASX Emerging Companies (XEC) up 0.8%.

But oh, how things can turn – on Monday we were talking up ‘peak inflation’ and by Friday we’d kill our own grandmother for a cheap lettuce and a real fireplace.

China started to reopen after not quite dealing with COVID-19 but also not quite dealing with the mad lockdowns imposed on some 40 plus cities.

The commodities complex, itself swinging like Jed Cooper out of Oklahoma saw rises for precious metals, copper and iron ore.

 

The Aussie dollar-buck rose, as the Greenback fell.

The surprise bump for oil during the week was something of a ‘forget you man’ to the producers over at OPEC, who agreed to lift production by circa 650k barrels a day for July and August which pretty much no one reckons they’ll achieve.

The EU finally announced a bit of a ban on Russian oil, which no one really believed either.

“The EU’s ban on the two thirds of Russian oil that it imports by sea and China’s reopening being the latest source of upwards pressure on oil prices,” says AMP Capital’s Dr Shane Oliver.

“The EU move raises the risk that Russia will cut off some more of its gas exports to Europe in retaliation,” he added.

As of this week, suddenly gas is a bit of a problem in this part of the world too.

Gains in local shares were largely driven by materials, consumer staples and industrials offsetting falls in utilities where surging energy prices weighed. The tech sector continues to be the plaything of twitchy volatility out of the Nasdaq.

The Bank of Canada followed the RBNZ to lift rates by 0.5% as central banks move in concert to a more hawkish footing.

“Another stronger than expected rise in Eurozone inflation to US levels has increased expectations that the ECB’s first rate hike will be 0.5%,” says Dr Oliver.

Australian March quarter GDP growth of 0.8% was more good news than bad, likewise April trade data delivered an unexpected pick up in the trade surplus.

Image courtesy AMP Capital

How did this week’s IPOs perform?

The first IPO of June, Nordic Nickel (ASX:NNL) closed 16% higher on its Thursday debut at 29c after raising an impressive $12 million at 25c a pop.

NNL is chasing up some old Outoukumpu targets at its 395sqkm Pulju Project over in Finland and hopes to deliver an initial JORC resource estimate on the back of re-assays from the project’s remaining core within months of listing.

It is also planning to drill deeper to make discoveries akin to Anglo American’s 44Mt development stage Sakatti nickel-copper-PGE project, one of three major orebodies in the Nordic neighbourhood along with Boliden’s 307Mt Kevitsa nickel-copper-gold open cut and Agnico Eagle’s 7.4Moz Kittila mine.

MD Todd Ross says Finland remains underexplored despite this bountiful endowment.

“Our vision is to discover and develop traceable, sustainably sourced, low-carbon, high purity class-1 nickel sulphides in Finland, at a time when demand for battery metals is growing exponentially,” he said.

 

ASX SMALL CAP WINNERS:

Here are the best performing ASX small cap stocks for May 30 – June 3:

Swipe or scroll to reveal full table. Click headings to sort:

Code Company Price % Week Market Cap
14D Southern Cross Gold 0.69 245% $36,735,023
1AD Lindian Resources 0.1 156% $70,595,981
1AE Tyranna Res Ltd 0.019 111% $27,582,492
1AG Oklo Resources Ltd 0.1525 101% $73,151,989
1ST Australresources 0.635 74% $148,354,222
1VG Astro Resources NL 0.004 60% $18,820,965
2BE Diatreme Resources 0.04 60% $97,221,844
3MF Analytica Limited 0.0015 50% $6,920,702
8CO Carbonxt Group 0.2425 43% $45,900,937
8IH BBX Minerals Ltd 0.16 39% $75,903,543
99L Merchant House 0.075 39% $7,069,987
9SP Bellavistaresources 0.34 39% $11,496,716
A1G Bubs Aust Ltd 0.615 35% $379,920,860
A3D Ausquest Limited 0.028 33% $19,803,581
A8G Argonaut Resources 0.004 33% $10,818,614
AAJ Oilex Ltd 0.004 33% $32,971,837
AAP Titomic Limited 0.22 33% $46,581,921
AAU Lark Distilling Co. 3.23 32% $249,264,108
ABE Mtmongerresources 0.21 31% $7,977,207
ABV Xtek Limited 0.42 31% $42,260,502
AC8 Horseshoe Metals Ltd 0.038 31% $17,662,172
ACP Pentanet 0.345 30% $75,316,504
ACR Odin Metals Limited 0.022 29% $10,259,575
ACS Nuchev Limited 0.355 29% $17,851,817
ACU Invigor Group Ltd 0.045 29% $8,732,392
AD1 Jayride Group 0.18 29% $31,749,166
ADD Close Loop 0.45 29% $156,252,195
ADR Noxopharm Limited 0.295 28% $90,593,765
ADS Tigers Realm Coal 0.023 28% $274,400,750
ADV Eden Inv Ltd 0.014 27% $30,109,399
ADX Internationalgraphit 0.375 27% $29,743,159
ADY Audeara 0.091 26% $5,328,544
AEI OZZ Resources 0.12 26% $4,509,827
AER Arafura Resource Ltd 0.48 26% $722,671,534
AEV Galileo Mining Ltd 1.78 26% $325,431,033
AFL Kingfisher Mining 0.34 26% $9,759,825
AFW Cardiex Limited 0.44 26% $30,787,036
AGC PYC Therapeutics 0.088 26% $267,197,793
AGN Complii Fintech Ltd 0.094 25% $31,333,607
AGR Avira Resources Ltd 0.005 25% $9,534,555
AHC Gas2Grid Limited 0.0025 25% $10,145,255
AHI Mamba Exploration 0.125 25% $5,271,875
AHK New Zealand Coastal 0.005 25% $4,108,020
AHN Victory Goldfields 0.155 24% $5,768,722
AII Greenstone Resources 0.063 24% $57,750,129
AIR Meteoric Resources 0.016 23% $21,368,163
AIV Way2Vatltd 0.059 23% $9,671,154
AJJ Meeka Gold Limited 0.07 23% $60,745,427
AJX Taruga Minerals 0.0245 23% $13,295,110
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Southern Cross Gold (ASX:SXG), is up over 200% since Monday. This spinout of TSX-listed Mawson Gold explorer is enjoying the dream start to life on the ASX.

SXG is currently up 240% on its May 12 listing price of 20c per share, thanks to a speccy 119m at 3.9g/t gold equivalent drill hit at the ‘Sunday Creek’ project in Victoria.

This hit in hole SDDSC033 included a bunch of higher-grade zones like:

  • 1m @ 17.7g/t Au and 1.6% antimony (20.3g/t AuEq) from 160.5m
  • 3m @ 26.2g/t Au and 3.7% antimony (32g/t AuEq) from 180m, and
  • 2m @ 14.7g/t Au and 4.8% antimony (22.3g/t AuEq) from 189.9m

Antimony is alloyed with lead and tin for use in products like bullets, batteries, and semiconductors.

This latest result — drilled to test a 120m gap between three mineralised shoots — is “unprecedented”, managing director Michael Hudson says.  This sort of width of high-grade mineralisation is rarely, if ever, seen in the Victorian goldfields.

“A result of 119.2m @ 3.9g/t AuEq places the Sunday Creek project into a new realm and builds on what was already a remarkably successful drill program,” he says.

Been a big week too for the team at CardieX’s (ASX:CDX), which got hearts racing after equities research shop MST Access placed a $1.50 valuation on the Australian cardiovascular medtech stock this week.

The price equates to an overall market cap of about $165 million versus $32 million currently, as the company is currently trading just below 30c a share on market.

MST is the second leading analyst to put a buy on CardieX in the last six months. In December, Blue Ocean Equities initiated coverage with a “spec buy” recommendation and target price of 16 cents. This was on a pre-consolidation basis equating to a target price of $1.60.

Blue Ocean said there’s “early-stage growth potential and the impending nature of the FDA clearance process for the new product suite.”

CDX is up over 40% this week.

The hands down winner for the month of May still gets a special mention for the first week of June.  Galileo Mining (ASX:GAL), is a full blown monster, at one stage this week it had gained 750% for the month to date.

For our purposes we can take Peter Farquhar’s blow by blow summary from the fun bits:

May 26: “Discovery confirmed!” says GAL. More highlights with big numbers in them, and news drilling’s about to start on the the actual thick and high grade stuff next week. Share price hits $1.41.

Creasy’s $1.75m investment 12 days ago alone is worth $4.25m now. And it was just a 2% top-up on his 24% stake.

But wait, there’s more…

May 27: Rhodium struck. Assays from the Norseman project are now confirming the presence of rhodium. It’s only one of the rarest and most valuable precious metals in the world, currently selling for $US15,500/oz.

Most global rhodium production is used in catalytic convertors, which control emissions in ICE and hybrid vehicles.

GAL hits its high of $1.91. About 800pc on its price three weeks earlier. Creasy’s stake has roughly popped from $9m to somewhere north of $70m. What a ride.

Galileo finishes the month at $1.44, after some of the more giddy participants exited the rollercoaster.

 

ASX SMALL CAP LOSERS:

Here are the best performing ASX small cap stocks for May 30 –  June 3:

Swipe or scroll to reveal full table. Click headings to sort:

Code Description Last % Week Market Cap
ZIP Firefinch Ltd 0.345 -68% $1,122,181,060
ZER Geopacific Resources 0.105 -51% $48,809,185
WTN Carnegie Cln Energy 0.001 -50% $22,653,861
WSA Deferred Settlement 0.075 -38% $6,859,436
WQG Finder 0.12 -35% $9,000,000
WMI Javelin Minerals Ltd 0.001 -33% $9,354,153
WMA Manypeaksgoldlimited 0.28 -30% $9,951,620
WGX Allup Silica Ltd 0.135 -29% $4,816,773
WHF Hydrocarbon Dynamic 0.017 -29% $9,980,029
WGN Desert Metals 0.22 -28% $11,757,995
WBT Ioupay Limited 0.06 -27% $32,533,312
WGB Bikeexchange Ltd 0.019 -27% $5,070,722
WAF BIR Financial Ltd 0.017 -26% $3,447,287
WAX Cycliq Group Ltd 0.014 -26% $5,212,750
VMY Applyflow Limited 0.0015 -25% $4,436,412
VRT Medibio Limited 0.003 -25% $8,389,465
VSL Sihayo Gold Limited 0.003 -25% $12,754,158
VUL Victory Offices Ltd 0.042 -25% $5,682,529
VGL Kincora Copper 0.076 -24% $6,298,263
VML Rightcrowd 0.072 -24% $23,524,676
VG1 Appen Limited 6.4 -23% $764,980,775
VG8 Pearlgullironlimited 0.027 -23% $1,647,069
VGI Duke Exploration 0.1 -23% $9,923,227
TUA Coopermetalslimited 0.4 -22% $12,159,000
TWR Biotron Limited 0.072 -22% $58,260,415
TYR Catapult Grp Int Ltd 0.8 -22% $176,262,821
UMG Eneco Refresh Ltd 0.021 -22% $7,353,675
UNI Red Mount Min Ltd 0.007 -22% $13,138,911
UOS Pancontinental Energ 0.007 -22% $50,079,560
URW Halo Technologies 0.435 -22% $53,097,308
TRJ Fintech Chain Ltd 0.026 -21% $18,221,548
SXL EVE Health Group Ltd 0.001 -20% $4,309,809
SYA Alterra Limited 0.012 -20% $3,345,315
SYM Akora Resources 0.2 -20% $12,284,404
SYR Intelligent Monitor 0.12 -20% $11,996,079
TER Incentiapay Ltd 0.012 -20% $15,180,764
TGR Laneway Res Ltd 0.004 -20% $31,510,082
TIE Metalicity Limited 0.004 -20% $13,829,533
TIG Orion Equities 0.28 -20% $4,381,784
TLG Peak Minerals Ltd 0.012 -20% $12,496,449
TLX Roots Sustainable 0.004 -20% $3,373,347
TPW Volt Power Group 0.002 -20% $18,689,067
TRA Latin Resources Ltd 0.096 -20% $181,347,418
SSR AMA Group Limited 0.175 -19% $178,926,191
SST Elixinol Wellness 0.039 -19% $13,599,420
STA Lordresourceslimited 0.26 -19% $8,157,925
STX Activex Limited 0.038 -19% $8,215,698
SVL Fitzroy River Corp 0.125 -19% $13,494,281
SVM Crowd Media Limited 0.029 -19% $19,425,332
SWM Eastern Resources 0.029 -19% $28,838,662
SSM Xpon Technologies 0.135 -18% $21,583,764
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