Australian shares traded higher at midday as mining stocks rebounded on firmer commodity prices and easing concerns over further US interest rate rises. The S&P/ASX 200 rose 12.3 points, or 0.14%, to 8,761 at 12.20pm AEST, with seven of the 11 sectors advancing. Gold climbed back above US$4,000 an ounce and copper recovered from a seven-week low after softer-than-expected US inflation data lifted sentiment across resource stocks.
Mining companies led the gains, with Resolute Mining rising 3.3%, Newmont adding 2.5%, Rio Tinto gaining 1.7% and BHP up 1.1%. Energy stocks also edged higher as oil held most of its overnight gains, while financials were mixed. Technology lagged, with WiseTech Global and NextDC falling, and Judo Capital extended losses after Thursday’s record sell-off following its profit warning.
In small cap news:
Chilwa confirms rare earth mineralisation beneath Mposa sands
Chilwa Minerals (ASX: CHW) has confirmed widespread rare earth element mineralisation in clay beneath its Mposa heavy mineral sands deposit in Malawi, with assay results from 200 drill samples averaging 525 parts per million total rare earth oxide across an eight-kilometre corridor. The company will now undertake metallurgical test work to determine whether the rare earths occur in a recoverable ionic adsorption clay form. Management said the discovery could create a dual-commodity development opportunity, with heavy mineral sands at surface and rare earth mineralisation immediately below, allowing both resources to potentially be developed from the same mine site. Click here to view the full announcement.
Elixir completes key stimulation milestone at Lorelle-3H
Elixir Energy (ASX: EXR) has completed the 12-stage fracture stimulation program at its Lorelle-3H appraisal well in Queensland’s Taroom Trough, with all planned proppant successfully placed within the target gas-condensate reservoir. The company has now begun milling out stage plugs ahead of flow-back operations and a planned 30-day production test designed to assess commercial gas and condensate flow rates. Management said the stimulation program performed as planned, with pressure data confirming effective fracture placement across the horizontal well. The production test is expected to provide key data to support potential reserve conversion and future development of the Taroom Trough project.
EQ Resources deepens strategic partnership with Elmet
EQ Resources (ASX: EQR) has strengthened its strategic relationship with US-based advanced materials manufacturer Elmet Group after Elmet exercised its option to acquire 20 million EQR shares. The investment increases Elmet’s holding to more than 23.6 million shares and builds on the companies’ existing long-term offtake agreement for tungsten concentrate from EQR’s Barruecopardo operation in Spain. The company said the expanded partnership further aligns its upstream tungsten mining operations with Elmet’s downstream manufacturing capabilities, supporting the development of a secure and traceable Western tungsten supply chain serving critical industries including defence, aerospace and semiconductors
