More quarterlies released: ASX finishes marginally in the green for a second straight day

Market Reports

by Peter Milios

The ASX closed the day slightly higher as more companies are starting to release their quarterly reports. Overall, at the closing bell, the S&P/ASX 200 was 0.31 per cent or 20.90 points higher at 6800.10.

Coal miners BHP (ASX:BHP) and Whitehaven (ASX:WHC) released their quarterly update today. The results show that both companies have had some issues. BHP reported that labour shortages and weather disruptions are causing problems along its east coast coal divisions at a time of booming coal prices. Whitehaven have reported a large decline in coal sales, stating that wet weather and flood caused some disruption.

Despite this, Whitehaven closed they day 1.83 per cent higher, whilst BHP declined by less than a per cent.


The Dow Jones futures are pointing to a rise of 148 points.
The S&P 500 futures are pointing to a rise of 26.50 points.
The Nasdaq futures are pointing to a rise of 116 points.
The SPI futures are pointing to a rise of 17 points when the market next opens.

Best and worst performers

The best-performing sector was Utilities, up 0.95 per cent. The worst-performing sector was Energy, down 0.75 per cent.

The best-performing stock in the S&P/ASX 200 was Core Lithium (ASX:CXO), closing 8.24 per cent higher at $1.38. It was followed by shares in Pilbara Minerals (ASX:PLS) and Pendal Group (ASX:PDL).

The worst-performing stock in the S&P/ASX 200 was Megaport (ASX:MP1), closing 22.14 per cent lower at $6.61. It was followed by shares in St Barbara (ASX:SBM) and Karoon Energy (ASX:KAR).

Asian news

Asian equities have had mixed results so far today.

Mainland China and Hong Kong are moving deeper into negative territory, contrasting with gains in Japan, and South Korea.

Japan's Nikkei has gained 0.61 per cent.
Hong Kong's Hang Seng has lost 1.18 per cent.
China's Shanghai Composite has lost 0.51 per cent.

Company news

Lepidico (ASX:LPD) announced today that all test-work associated with the demonstration and pilot scale trials that started in November 2021 has successfully completed and reported on by Strategic Metallurgy, with excellent results received that confirm the Phase 1 L-Max and LOH-Max design. The two final reports, lithium hydroxide refining and by-product manufacture, have been reviewed by Lepidico. These are now being provided to Behre Dolbear Australia Pty Ltd (BDA), Independent Engineer to lender International Development Finance Corporation (DFC), along with the latest Karibib mine schedule, allowing it to complete its technical review. This represents a major gating item for closing out due diligence and finalising Project lending. Managing Director Joe Walsh said, “Final data from these most recent extensive pilot trials provide enormous confidence in Lepidico’s process technologies and further reduce Phase 1 risk, as the learnings have been progressively included into the process design criteria. It is most gratifying that independent third-party test-work has demonstrated that LOH-Max can produce a “more pure” lithium hydroxide than the conventional sodium sulfate process and result in high quality crystal morphology. We now look forward to taking our project debt initiatives to the finish line.” Shares are trading up 16.7 per cent to 2 cents.

Azure Minerals (ASX:AZS) announced that the company has received further high grade lithium assay results from the pegmatite exploration program on the Andover Project, located near the town of Roebourne in the West Pilbara region of Western Australia. In response, Azure’s Managing Director, Mr Tony Rovira said, “The latest batch of assays returned high grades of lithium up to 3.32 per cent Li2O, which is the highest lithium grade reported to date. Encouragingly, our geological mapping is identifying the presence of the preferred lithium-bearing mineral, spodumene, in many of the outcropping pegmatites.” Shares are trading 30.2 per cent higher at 28 cents.

Grand Gulf Energy (ASX:GGE) announced an update on the Red Helium project. Downhole gas samples analysed at the Jesse#1A well returned 0.89 per cent to 0.96 per cent helium, providing further upside to helium concentrations at Jesse versus the previously announced 0.8 per cent which exceeded pre-drill expectations. Given the sampling procedure these samples are considered most representative of reservoir gas. Shares have added 13.3 per cent to 2 cents.

AuKing (ASX:AKN) has today announced that they have acquired a 100 per cent interest in six projects in Tanzania - four prospective for uranium (Mkuju, Manyoni, Itigi and Magaga) and the other two prospective for copper (Mpanda and Karema). In response, AuKing CEO, Paul Williams stated, “The company now has the ability to pursue and develop uranium assets in a stable African jurisdiction at a time when there is significantly renewed interest in the development of uranium projects.” Shares are trading 18.3 per cent higher at 11 cents.

United States-focused clean technology company Carbonxt Group (ASX:CG1) has announced the renewal and extension of its longstanding partnership with the US utilities provider, Wisconsin Public Service (WPS) for the supply of AC Pellets to 2030. The agreement confirms a continuation of a highly successful partnership to develop an engineered pellet solution for emissions reductions. Managing Director of Carbonxt, Warren Murphy, stated, “This long-term contract extension marks a major step forward for Carbonxt and locks in higher margin revenue for the next eight years. As well, it sets the company up with a strong platform for additional sales growth in the US market. We are delighted to continue our partnership with WPS, which is a great example of how Carbonxt combines its leading R&D initiatives with operational expertise in manufacturing, to build scalable solutions that comply with industrial emission regulations and offer commercial benefits to both the Company and our clients. With the extension of our existing contract through to 2030, we will continue to support WPS and its long term emissions reduction goals.” Shares are unchanged at 11 cents.

MinRex Resources (ASX:MRR) announced last night after the close its preliminary geological data from the completed RC drill program over the Sisters Lithium Project in the East Pilbara of WA. In conjunction, 3 rock chip samples were taken over newly identified pegmatites away from the firstly discovered spodumene rich pegmatites in the south-eastern portion of the E45/5871. These new identified highly anomalous lithium pegmatites have demonstrated more potential for pegmatites discoveries on the ground. The extensive floodplain covering the area has the potential to yield further untested pegmatites. MinRex Resources Managing Director Mr Karageorge commented: “We are delighted in the very early stage of drilling to have intersected stacked pegmatites sheets that have extensions at depth from the outcropping high-grade lithium samples delineated earlier in the year. This has confirmed the geological model which supports the stacked sheeted pegmatites are continuing at depth from surface.” Shares are trading 7.8 per cent down at 5 cents.

Next Science (ASX:NXS) this morning announced the launch of topical collagen products to complement the Company’s BlastXTM product. To take this product to market more effectively, the company has established itself as, and been licensed and accredited by US Medicare as, a Durable Medical Equipment (DME) provider based in the State of Florida, USA. The medical Collagen market in the US is estimated at over US$1.4B per annum1. Once traction is established, revenues from the sale of Collagen are expected to be material. Shares are trading 7.7 per cent higher at 80 cents.

Delorean Corporation (ASX:DEL) this morning announced the company has entered into a binding agreement to form a multi-project development funding partnership to support DEL’s project funding for up to $200m. Funds will be managed by Palisade Impact and arranged by Planum Partners. DEL’s Managing Director Joe Oliver commented, “This development funding partnership with Palisade Impact is a major milestone for Delorean’s business. DEL listed on the ASX in April 2021 with the specific purpose of focusing on development and capitalisation of its own bioenergy infrastructure pipeline, to diversify the business beyond its already growing construction project portfolio and WA energy retail revenues”. Shares are trading up 29.2 per cent to 8 cents.

Commodities and the dollar

Gold is trading at US$1646.38 an ounce.
Iron ore is 1.1 per cent higher at US$94.80 a tonne.
Iron ore futures are pointing to a rise of 0.29 per cent.
Light crude is trading $0.79 higher at US$82.86 a barrel.
One Australian dollar is buying 63.13 US cents.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?