IT and Materials lead the way: ASX finishes 1.54% higher

Market Reports

by Peter Milios

All sectors finished in the green to start the week, with some big results from Australian electric vehicle companies. The ASX companies that were amongst the list of 20 companies that were rewarded funds from the Biden-Harris Administration were up big today.

Piedmont Lithium (ASX:PLL) is up 11.76 per cent, Syrah Resources (ASX:SYR) is up 9.55 per cent, and Novonix (ASX:NVX) is up 33.48 per cent.

It is reported that three of the big four retail banks are expected to return soaring profits when they release reports over the next few weeks. Analysts are stating that the Net Interest Margin of banks rose by over a per cent over the six months ending 30th September 2022.

Overall, at the closing bell, the S&P/ASX 200 was 1.54 per cent or 102.60 points higher at 6779.40.


The Dow Jones futures are pointing to a rise of 104 points.
The S&P 500 futures are pointing to a rise of 16 points.
The Nasdaq futures are pointing to a rise of 61.50 points.
The SPI futures are pointing to a rise of 106 points when the market next opens.

Best and worst performers

The best-performing sector was Materials, up 2.51 per cent. The sector with the fewest gains was Energy, up 0.74 per cent.

The best-performing stock in the S&P/ASX 200 was Novonix (ASX:NVX), closing 33.48 per cent higher at $2.95. It was followed by shares in Evolution Mining (ASX:EVN) and Gold Road Resources (ASX:GOR).

The worst-performing stock in the S&P/ASX 200 was New Hope Corporation (ASX:NHC), closing 4.31 per cent lower at $7.10. It was followed by shares in South32 (ASX:S32) and Beach Energy (ASX:BPT).

Asian markets

Asian equities have been mixed so far this Monday.

Japan's Nikkei has gained 0.64 per cent so far.
China's Shanghai Composite has lost 0.89 per cent so far.
The Hang Seng is under pressure with tech stocks seeing heavy falls. It has lost 4.99 per cent so far.

Mainland equities are also lower in the wake of September economic data.

Markets are firmer elsewhere, with Korea and Taiwan in the green.

The S&P 500 futures erased earlier gains. There is more curve steepening with a big downshift in the Treasury. FX markets are volatile with the dollar higher on most crosses. Commodities are mixed with crude turning negative.

Company news

Recharge Metals (ASX:REC) announced an update this morning on the company’s diamond drilling activities at the Brandy Hill South Project located within the Archaean Gullewa Greenstone Belt in Western Australia. The company has found further significant sulphide intercepts in Diamond Drilling at Brandy Hill South located in Western Australia. Both drill holes intersected zones of massive sulphides, blebby sulphides and disseminated sulphide mineralisation. Recharge Metals Managing Director Brett Wallace commented: “The Recharge team are very excited to once again intercept significant widths of mineralised zones where we had anticipated, based on the findings from downhole electromagnetic surveys. We have completed an additional two diamond holes, BHRCD029 and BHRCD030, which targeted DHTEM conductor (BHD026-2). Both holes intercepted extensive zones of massive, semi-massive to disseminated pyrite, chalcopyrite and pyrrhotite. We now look forward to completing the final diamond hole testing the remaining DHTEM conductor, and receiving the assay results from the first two diamond holes reported on the 14th August that had similar findings, as well as the assays from the eight pre-collars.” Shares closed flat at 19 cents.

Perth Basin energy company Norwest Energy NL (ASX:NWE) presented its Q3 report this morning. Quarterly highlights include that Ringneck 2D seismic confirmed significant new gas lead; preparations for drilling North Erregulla Deep-1 and Lockyer-2; a partnership with Pilbara Clean Fuels to pursue a mid-scale eLNG plant in Port Hedland and a quarter-end cash balance of $21 million. Shares closed 2 per cent lower at 5 cents.

Critical Resources (ASX:CRR) announced today assay results from the current diamond core drilling campaign at the company’s 100 per cent owned Mavis Lake Lithium Project. The assay results illustrate the continuity of high-grade lithium mineralisation within the Main Zone of Mavis Lake. Critical Resources’ Managing Director Alex Cheeseman said: “These intercepts are relatively close to the surface, with the main zone remaining open at depth, which we are yet to test. With the excellent results of the last few months, Mineral Resource Estimate works underway, and drilling continuing at Mavis Lake, we are extremely pleased with how the project is progressing as we move from exploration into development.” Shares closed 9.5 per cent lower at 7 cents.

Ardiden (ASX:ADV) announced that it has entered into a binding agreement with Green Technology Metals (ASX:GT1) for the sale of its remaining 20 per cent interest in the Lithium Joint Venture over the Seymour Lake, Root Lake and Wisa Lake assets in northwest Ontario, Canada. The total consideration is up to A$18.5 million, consisting of upfront cash consideration of A$16 million, and a deferred consideration component of A$2.5 million, payable upon reaching a JORC Mineral Resource of 20Mt. Chairman Bruce McFadzean stated: “We are pleased with the Transaction, which will see Ardiden emerge as a well-capitalised entity with the funding required to aggressively explore our highly prospective Pickle Lake Gold Project. The Transaction is non-dilutive for existing Ardiden shareholders and recognises the value of our assets relative to our recent trading history.” Shares closed flat at 1 cent.

Dreadnought Resources (ASX:DRE) announced this morning that assays have continued to confirm thick, high-grade REE mineralisation at Yin, within its 100 per cent owned Mangaroon Project in the Gascoyne Region of Western Australia. Dreadnought’s Managing Director, Dean Tuck, commented: “Yin continues to deliver exceptional REE results. With 91 of 120 holes reported, we remain on schedule to deliver our initial JORC resource at Yin in the December 2022 quarter. Importantly this initial JORC Resource will only cover ~3km of the interpreted ~16km of strike of Yin. RC Drilling of C1-C5 carbonatites and diamond drilling at Yin is progressing well with updates expected shortly.” Shares closed 10 per cent higher at 11 cents.

Galan Lithium (ASX:GLN) announced today a substantial increase in its JORC (2012) reported Mineral Resource estimate for the Hombre Muerto West Project located in Catamarca Province, Argentina. The revised Mineral Resource estimate was completed by the Australian based team of leading independent geological consultants, SRK Consulting. The Mineral Resource increases 2.5 times to 5.8Mt contained lithium carbonate equivalent (LCE) @ 866 mg/l Li. In response, Galan’s Managing Director, Juan Pablo Vargas de la Vega stated, “This is a function not only of the size of the increase in resource, but also the big step-up in confidence classification that has been achieved. This potential is now set to be incorporated into our ongoing Definitive Feasibility Study (DFS) work, which is on track for completion during Q1 2023.” Shares closed 17.3 per cent higher at $1.49.

Gascoyne Resources (ASX:GCY) advised this morning that it has received spectacular new assay results which confirm the scale and importance of the new high-grade Never Never gold discovery, located immediately north of its main operating pit at the Dalgaranga Gold Project in WA. Gascoyne Resources Managing Director Simon Lawson said: “Never Never is one of the most remarkable gold deposits I have ever seen. It’s very rare to see such a combination of high-tenor and high grade mineralisation over widths of this magnitude. Our geologists are super excited as we drill each hole and, with such amazing intercepts being delivered with each successive step-out, it is becoming increasingly clear that this is one of the most significant new gold discoveries anywhere in Australia.” Shares closed 12.2 per cent higher at 23 cents.

Australian medical technology company LBT Innovations (ASX:LBT), a leader in medical technology automation using artificial intelligence, has announced the company has been awarded $1.5 million funding from the Australian Government’s Medical Research Future Fund (MRFF) initiative through MTPConnect’s Clinical Translation and Commercialisation Medtech (CTCM) program to support the development of a new smaller benchtop APAS instrument (APAS Compact). The APAS Compact will deliver LBT’s next automated culture plate reader, designed specifically for smaller or remote laboratories. Once completed, LBT will be able to offer laboratories a range of digital microbiology solutions that address the needs and workflows of all laboratories regardless of size. LBT Managing Director and CEO Brent Barnes said: “There remains a significant opportunity to disrupt microbiology and introduce automation at scale to optimise the culture plate workflow. This CTCM funding accelerates delivery of a key component of the Company’s Product Pipeline Strategy by adding a smaller, lower cost APAS® instrument that means we are able to offer digital microbiology solutions that meet the needs of all laboratories globally.” Shares closed 2.7 per cent lower at 7 cents.

Emerging sustainable battery materials producer Neometals (ASX:NMT) announced that The Regional State Administrative Agency for Southern Finland has granted an environmental permit for operation of a vanadium recovery plant and associated infrastructure (“Vanadium Recovery Project” or “VRP1”). The permit authorises, subject to a number of conditions, the production of approximately 9,000tpa of vanadium pentoxide. Neometals Managing Director Chris Reed said: “Congratulations to the Neometals and Critical Metals teams and consultants for achieving this significant milestone. Neometals is also grateful to the people and government of Finland for the significant support. The permit, of which the conditions are now outside public appeal, substantially de-risks the VRP1 project as we prepare to make key investment decisions." Shares closed 10.5 per cent higher at $1.16.

Raiden Resources (ASX:RDN) reported this morning on the initial assay results from the recently completed Mt Sholl drilling program. Some highlights include: the first four drill holes confirm near-surface, broad zones of highgrade Ni-Cu-PGE sulphide mineralisation from the B2 deposit and that a massive, semi-massive and disseminated Nickel, Copper and PGE bearing sulphide mineralisation correlates well to assay results and the historical drilling. Mr Dusko Ljubojevic, Managing Director of Raiden, commented: “The consistency of the mineralisation across the sections to date is very encouraging and continues to support management’s view that Mt. Sholl has the potential to develop into Australia’s next exciting Nickel-Copper-PGE deposit.” Shares closed 12.5 per cent higher at 1 cent.

Shree Minerals (ASX:SHH) has today announced their project has received Programme of Work (POW) approval. The POW approval outlines that they can perform a RAB drilling planned to test the identified lithium pegmatite potential and gold anomalies, in the southern portion of the tenement E63/2046 as per the approved Conservation Management Plan. Shares closed 28.6 per cent higher at 1 cent.

Vulcan Energy Resources (ASX:VUL; FSE:VUL) announced this morning it has produced the highest grade, lowest impurity lithium hydroxide to date from its pilot plant, located at its commercially operational geothermal renewable energy plant, at its Zero Carbon Lithium Project. Managing Director and CEO Dr Francis Wedin commented: “As our DFS draws towards its conclusion, we are encouraged by these latest highest grades and lowest impurities recorded to date, from LiCl production from our pilot plant, with electrolysis conducted offsite. The embodied renewable heat within our brine means we are able to leverage sorption, a commercially proven process to extract lithium from brines that requires heat to work. Sorption is highly selective, which means that we can produce a very pure LiCl eluate. This in turn means we are able to use lithium electrolysis, a method of producing lithium hydroxide directly which by its nature produces a very pure product, in excess of the purity required for use in Electric Vehicle (EV) batteries, with minimal reagent usage.” Shares closed 13.4 per cent higher at $6.85.

Highfield Resources (ASX:HFR) announced this morning that it has received credit approvals from a syndicate of four international financial institutions acting as Mandated Lead Arrangers for senior secured project financing facilities of up to €321 million to fund the construction and development of its 100 per cent owned Muga Potash Project located in Spain. Ignacio Salazar, CEO, commented: "We are delighted to announce the credit approval of €321 million Debt facilities from BNP Paribas, ING, Natixis CIB and Societe Generale. This milestone represents the conclusion of an intensive and extensive due diligence process which included site visits by the MLAs and independent experts conducting environmental, social, technical, marketing and legal evaluations of the Project. With the preliminary works around the mine-gate getting finalised, securing project finance was an essential step to move the construction of the Project forward.” Shares closed 6.7 per cent higher at 80 cents.

Breaker Resources NL (ASX:BRB) has today released its third quarter report. The report announced highlights of their Lake Roe Gold Project, Manna Lithium Project and Ularring Gold-Copper & Nickel-PGE Project. Out of Lake Roe Gold Project, the underground development strategy advances with completion of the Tura underground scoping study as one of several underground prospects -- stage 1 could produce 88,000oz at cash cost of A$1,087/oz and total cost of A$1,390/oz. Out of their Manna Lithium Project, the GL1 continues to drill at Manna with drill results returning good intercepts of spodumene to 150m depth in the initial discovery area. Out of their Ularring Gold-Copper & Nickel-PGE Project, work permits and access agreements have been finalised over some of the Ularring tenements. POWs were also granted over the tenement, targeting Ni-PGE and Cu-Au mineralisation. Shares closed 4.2 per cent lower at 23 cents.

Commodities and the dollar

Gold is trading at US$1657.70 an ounce.
Iron ore is 1.8 per cent higher at US$93.00 a tonne.
Iron ore futures are pointing to a rise of 0.14 per cent.
Light crude is trading $0.62 lower at US$84.43 a barrel.
One Australian dollar is buying 63.39 US cents.

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