• Phosphate stock PhosCo led the November pack with a 150% gain 
  • Graphite company Green Critical Minerals surged on VHD Block technology
  • Two large caps made the cut 

 

It was a bit of a flaccid month for ASX stocks in November, with no resources companies making a gain over 150%.

Both the lithium and nickel markets are showing signs of settling as the search for a bottom continues and the election-driven rally out of the US that pushed the gold price to peak levels has also started to lose steam.

African phosphate hopeful PhosCo (ASX:PHO) clinched the title for ‘biggest gainer’ in November following the approval by Tunisia’s Consultative Committee of Mines to grant the company 100% of the Gassaat exploration permit.

The grant includes the 146Mt at 20.6% P2O5 Chaketma resource, alongside targets to the north, and is key to developing Tunisia’s Northern Phosphate Basin into a regional phosphate-processing hub.

Gassaat, Phosco’s most advanced phosphate project, covers an area of 112km2 and is 210km southwest of capital city Tunis and another 35km from the nearest railhead which connects to the Port of Goulette/Rades for easy access to export and end users.

Alongside the grant, the company also entered into a non-binding MoU with the Tunisian Ministry of Industry, Mines and Energy and European Bank for reconstruction and development of the Northern Phosphate Basin.

The plan is to investigate converting radioactive phosphogypsum into inert materials, supporting small and medium enterprises to provide regional benefits in the basin and work with the EBRD on financing.

News sent the stock flying from 4c to an 8.1c high, reflecting a 60% intra-day rise.

 

Phosphate market drivers

Two other phosphate explorers – Minbos Resources (ASX:MNB) and Inca Minerals (ASX:ICG) – also made the top 50 as the phosphate sector continues to present a compelling investment opportunity on the back of increasing demand from agricultural applications and the burgeoning EV industry.

While only 10% of phosphorous found in sedimentary rock is suitable for making the high-purity phosphoric acid used in LFP (lithium iron phosphate) car batteries, the early stage application boasts great potential due to good thermal stability and longer life when compared to lithium-ion.

At US$152.50/t, phosphate rock is trading around half of its highs of ~US$350/t seen in late 2023, but double levels seen early in the pandemic.

The market is extraordinarily concentrated, with China, Morocco, Saudi Arabia and Russia controlling more than 75% of the export trade for the ammonium phosphate fertiliser market according to S&P.

During November, Minbos signed a subscription agreement with the Angolan Sovereign Wealth Fund for the investment of US$10m to fully fund Phase-1 construction of the Cabinda phosphate project.

Upon receival of funds, a civils contract (representing Phase-1 of construction), encompassing earthworks, access roads, drainage and concrete foundations will be finalised with mobilisation to take place shortly afterwards.

 

The top 50 ASX resources stocks for November:

Wordpress Table Plugin

 

 Large cap standouts

IperionX (ASX:IPX) +41%

IPX, owners of the Titan project – one of the largest titanium, zirconium and rare earth minerals deposits in the US – is developing an ‘end-to-end’ American titanium supply chain solution that includes the production of US titanium minerals and upgrading these minerals to +99% TiO2.

The company recently acquired commercial rights to titanium technologies such as green rutile, alkaline roasting and hydrolysis and hydrogen-assisted metallothermic reduction (HAMR) that promise lower energy consumption, faster cycle time, lower capex and the ability to utilise 100% scrap titanium or upgraded titanium minerals as feedstocks.

IPX is scaling these technologies at its Titanium Manufacturing Campus in Virginia to produce high-performance titanium products that exceed benchmark quality standards.

 

Vulcan Energy Resources (ASX:VUL) + 33%

VUL entered into a staged agreement with one of the world’s largest chemical producers, BASF SE (BASF), to collaborate on the development of a renewable heat project to supply BASF with around 2000–2500 GWh/a of baseload heat.

The agreement also incorporates the potential construction of a commercial lithium extraction plant in Ludwigshafen, BASF’s global headquarters and home to the largest integrated chemical complex globally.

The two companies plan to produce lithium salts concentrate following energy production from the hot brine.

This would then be transported to Vulcan’s Central Lithium Plant to produce battery grade lithium hydroxide for Europe’s electric vehicle (EV) market.

Vulcan will be the active project developer and integrated operator across the heat and lithium production facilities and would retain 100% ownership of the lithium production.

 

Other small-cap stand outs

Green Critical Minerals (ASX:GCM) +100%

GCM reached several key milestones last month, which acted as catalysts for the company’s 100% gain.

Professor Andrew Ruys was appointed as head of research and development to spearhead commercial readiness of VHD Graphite Blocks, $2.28m was raised to fund the construction of a pilot plant and maiden drilling revealed polymetallic potential at the Boulia project.

The company’s VHD Block tech converts graphite into saleable, high-density graphite blocks known as VHD graphite.

Containing among the highest thermal conductivity ever recorded for any bulk material, these blocks are considered an exceptional component of heat management applications such as solar-thermal systems, nuclear reactors and high-performance electronics.

Deliveries for all pilot plant equipment is expected before the end of the year, with construction due to start in the first half of December.

 

Cannindah Resources (ASX:CAE) +58%

Diamond drilling kicked off at CAE’s Mt Cannindah copper-gold project, 100km south Gladstone, QLD where measured, indicated and inferred resources total 14.5 million tonnes at 0.72% copper, 0.42 grams per tonne gold and 13.7 parts per million silver, or 1.09% copper equivalent.

While the market has largely overlooked Cannindah, the company has caught the attention of the world’s biggest copper producer, Codelco.

The Chilean major currently has no interests in Australia, making its interest in Cannindah all the more significant.

Discussions are ongoing and if Codelco walks away, Cannindah will receive the data from Codelco’s work at no cost.

 

Tungsten Mining (ASX:TGN) +46%

TGN executed an agreement with Minjar Gold to acquire the assets comprising the Mt Mulgine project in WA’s Murchison region including the tenements, mining information, water licence and contracts.

TGN is the logical acquirer of the Mt Mulgine Project as it acquired the tungsten and molybdenum rights relating to the Mt Mulgine tenements in 2015.

The new acquisition provides the company with the rights to explore, then hopefully develop, all minerals on the Mt Mulgine tenements beyond tungsten and molybdenum.

  

At Stockhead we tell it like it is. While Green Critical Minerals, Tungsten Mining and Cannindah Resources are Stockhead advertisers, they did not sponsor this article.

Read MoreCopperGoldGraphitePhosphateTitaniumTungsten

Featured Companies

You might be interested in