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Closing Bell: Meek Monday belies terrifying Tuesday RBA meet and awful OPEC idea; DNK up 30% on potash sale

Benchmark spikes, falls, recovers, trips again, stays down.   Small caps just fall Delta Drones, Danakali rise   Choppy, dicey, angsty … Read More
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  • Benchmark spikes, falls, recovers, trips again, stays down.  
  • Small caps just fall
  • Delta Drones, Danakali rise

 

Choppy, dicey, angsty trade on Monday. Low volumes and high volatility.

It’s almost like the markets themselves are in fact socialist at heart and want us ALL to be flat on our universal arses in recognition of labour day.

Trade was notably lacklustre not only ahead of tomorrow’s Reserve Bank board decision, where the general feeling is we’re raising and probably by 50 basis points, delivering a 9-year high of 2.85%.

But the real excitement dropped via newswires just around lunchtime when Wall Street futures came screaming awake on the news OPEC+ are discussing, planning, fiddling with the idea of trimming a million barrels a day from output.

Crude oil futures spiked.

On the ASX 200 Energy, Utilities and REITs ended around 1% higher, not much love for anyone else.

The benchmark has closed around 0.3% lower, the XEC small caps index 1.6%.

 

Things I know

Fun in the form of The Fed this week will come via US jobs numbers – private sector stuff on Thursday morning our time and then US non-farm payrolls on Friday. If Meta is trimming jobs, then it’s getting weird.

Adding to the stateside inflation story, the US will get feedback on construction spending, factory orders and trade.

Global manufacturing PMIs are out some time tonight, followed by services PMIs on Wednesday. China’s September manufacturing PMI surprised on Friday with a gain to 50.1 from 49.4. Services nonetheless fell to 50.6 from 52.6.

China is on what amounts to a holiday these days, ALL week.

Late on Sunday, Penrith vs Parra time, the 19th Central Committee of the Chinese Communist Party led by fan favourite General Secretary Xi Jinping held their 7th and final plenum in Beijing.

So that’s the official end of their five-year term. And what a term it was. Absolute bonkers from start to finish, really.

The purpose of their last zoom? Set up the 20th national party congress, which starts on October 16 and enshrines all the party’s new leaders.. and who knows how many from the 19th CCCCP? All, none or one?

In any case, it’s worth watching what happens in China during this Golden Week holiday leading up to the 20th Party Congress. Kunming, Shanghai… major cities a bunch of schools, people everywhere – they’ve been tld to stay put because if anyone catches COVID-19 during President Xi’s big occasion, then they’re officially naughty.

Certainly investors doubt if any of the events will be boosting Chinese stocks stateside. Long-distance trips are likely out and retail spending will suffer.

Tomorrow brings local job ads, building approvals, house price and housing finance data, along with the OCR.

The trade balance which will tell us exactly what China’s been doing to us on the trade front is due on Thursday.

The RBNZ meets on Wednesday. But honestly, unless they have power over ALL Black selections, I won’t be watching live.

 

ASX SMALL CAP LEADERS

Here are the best performing ASX small cap stocks:

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

CODE COMPANY PRICE % TODAY VOLUME MARKET CAP
AVW Avira Resources Ltd 0.004 33% 510,000 $6,356,370
DNK Danakali Limited 0.33 27% 3,936,699 $95,766,930
MTH Mithril Resources 0.005 25% 1,892,354 $11,760,932
CVR Cavalierresources 0.18 24% 330,088 $4,406,412
INP Incentiapay Ltd 0.011 22% 20,000 $11,385,573
CVV Caravel Minerals Ltd 0.25 22% 168,868 $85,932,796
AQX Alice Queen Ltd 0.003 20% 3,287,776 $5,500,625
DLT Delta Drone Intl Ltd 0.013 18% 108,611 $3,298,749
AUH Austchina Holdings 0.007 17% 2,380,009 $12,220,996
LNU Linius Tech Limited 0.0035 17% 500,000 $7,141,599
RAN Range International 0.007 17% 100,018 $5,635,742
RNX Renegade Exploration 0.007 17% 250,000 $5,337,760
ALY Alchemy Resource Ltd 0.0315 17% 65,978,469 $25,733,051
RCW Rightcrowd 0.048 14% 52,977 $10,988,974
TMT Technology Metals 0.415 14% 807,469 $76,585,963
MCM Mc Mining Ltd 0.465 13% 86,131 $81,038,497
GGE Grand Gulf Energy 0.017 13% 4,017,082 $23,199,160
CI1 Credit Intelligence 0.13 13% 81,389 $9,602,403
SFX Sheffield Res Ltd 0.45 13% 296,156 $138,635,022
AL8 Alderan Resource Ltd 0.009 13% 286,625 $4,626,129
DXN DXN Limited 0.009 13% 220,000 $13,770,519
NAE New Age Exploration 0.009 13% 1,964,060 $11,487,191
PNX PNX Metals Limited 0.0045 13% 75,000 $17,776,231
POW Protean Energy Ltd 0.009 13% 520,890 $5,204,904
G1A Galena Mining 0.1675 12% 225,870 $92,040,803

Peter Farquhar from Tasmania, says fans of Danakali (ASX:DNK) – and we know you’re out there – will be revelling in the news that their company could be selling its 50% interest in the flagship Colluli potash project in Eritrea for $US166m ($258m) pre-tax.

And returning 90% of those sale proceeds to them.

Until this morning, Danakali was worth, as a whole, $112m Pete says.

DNK meanwhile plans to use the remaining $US12m “to identify new projects and potential new alternative growth opportunities”.

 

Delta Drone International (ASX:DLT) is up almost 20% on some encouraging business:

Via DLT

CEO Christopher Clark says that of the back of DLT’s signing of its first long-term customer in Australia, Red 5, we have now set the baseline growth metrics for the business.

“These new key indicators not only display the maturity and robustness of our business and reporting today, but also give investors insight into how our commercial model is driven.

“By breaking up the growth drivers of our business, we believe shareholders will be able to derive the true value of the contracted recurring revenue   and our on-going total contract pipeline, as well as sizable non-recurring revenue, some of which we have historically been able to keep rolling forward.”

Explorer Widgie Nickel (ASX:WIN)has picked up high-grade lithium in rock chip sampling at the Faraday prospect, part of the 170,000t Mt Edwards nickel project in WA.

On their own rocks chips don’t mean much, but WIN is getting them from up to 25m wide pegmatites (rock that could contain lithium) outcropping over a 600m length.

These peggies could keep going under cover, the company says.

Despite being in a lithium-rich region – which includes major resources at Essential Metals’ (ASX: ESS) Dome North, LithCo’s Bald Hill and Mineral Resources’ (ASX: MIN) Mt Marion – there has been very little lithium exploration at Mt Edwards to date, WIN says.

The company will now drill Faraday with RC drilling “to provide an initial indication of pegmatite geometry (i.e. dip and true width) and lithium endowment within the rock unit”.

“This initial reconnaissance work identifying high grade spodumene over a significant strike length couldn’t be a better outcome for Widgie,” managing director Steve Norregaard says.

“To think we have 170,000t of contained nickel and we now can lay claim to hosting complementary and widespread lithium pegmatites in this world class lithium corridor.

“Widgie looks forward with great anticipation to getting a drill rig on this highly prospective target which will only complement the existing drilling effort on our nickel resources.”

Mesoblast (ASX:MSB)  is having a lovely Monday after making friends again with the US FDA.

Artist, financial wizard and medical stock genius Eddy Sunarto says submitted to the US FDA substantial new information in response to the FDA’s Complete Response Letter (CRL) in September of 2020.

The CRL letter refers to the license application for remestemcel-L in the treatment of children with steroid-refractory acute graft versus host disease (SR-aGVHD).

Mesoblast has maintained an active dialog with the FDA since receiving the CRL two years ago, and the company says that today’s submission to the Investigational New Drug (IND) file represents a major milestone in its complete response to the FDA.

The treatment for SR-aGVHD has not improved over the past few decades where survival outcomes remain very low.

The lack of any approved treatments for children under 12 means that there is an urgent need for a therapy that improves the dismal survival outcomes in children.

“The submission summarises controlled data providing further evidence of remestemcel-L’s ability to save lives” said Dr. Silviu Itescu, CEO of Mesoblast.

“Additionally, the improved process controls we have put in place to assure robust and consistent commercial product, together with a potency assay that predicts consistent survival outcomes, makes remestemcel-L a compelling treatment for these children.”

One more there is – Cavalier Resources (ASX:CVR)this is recently listed WA gold explorer has returned numerous thick, shallow, and reasonably high grades from drilling at its 101,000oz Crawford project.

Reuben Adams notes, highlights included 9m at 3.84g/t from 7m, and 3m at 12.52g/t from 67m.

“This first round of drilling at Crawford was designed to provide further confidence in the current 101,000 oz gold resource, test the potential for extension of the resource along strike and depth, and carry out exploration on potential new targets on the northern part of the lease,” exec technical director Dan Tuffin says.

 

ASX SMALL CAP LAGGARDS

Here are the best performing ASX small cap stocks:

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

CODE COMPANY PRICE % TODAY VOLUME MARKET CAP
GLV Global Oil & Gas 0.002 -33% 879,503 $5,620,064
MGG Mogul Games Grp Ltd 0.002 -33% 181,994 $9,790,324
BUR Burleyminerals 0.11 -21% 59,999 $4,805,227
EDE Eden Inv Ltd 0.0075 -21% 20,662,610 $24,569,166
LGM Legacy Minerals 0.12 -20% 250,000 $6,868,620
ADR Adherium Ltd 0.004 -20% 5,450,001 $12,809,249
SYN Synergia Energy Ltd 0.002 -20% 197,010 $21,044,477
TSC Twenty Seven Co. Ltd 0.002 -20% 30,263,694 $8,848,782
5EA 5Eadvanced 1.63 -20% 1,901,320 $580,962,878
MTR Metal Tiger 0.3 -19% 2,000 $7,318,085
MRC Mineral Commodities 0.075 -18% 488,375 $49,265,138
CMO Cosmometalslimited 0.12 -17% 10,000 $3,698,950
G50 Gold50Limited 0.12 -17% 50,000 $8,256,735
TTB Total Brain Ltd 0.039 -17% 45,000 $6,284,893
AD1 AD1 Holdings Limited 0.02 -17% 180,400 $16,817,551
CTO Citigold Corp Ltd 0.005 -17% 13,330 $17,001,955
FAU First Au Ltd 0.005 -17% 8,980,992 $5,588,466
MAU Magnetic Resources 0.805 -17% 222 $220,471,135
NYR Nyrada Inc. 0.11 -15% 170,000 $20,281,131
AJQ Armour Energy Ltd 0.006 -14% 199,825 $15,809,156
CAV Carnavale Resources 0.006 -14% 3,278,429 $19,029,862
CMD Cassius Mining Ltd 0.03 -14% 1,280,896 $14,130,932
LSA Lachlan Star Ltd 0.012 -14% 196,126 $18,466,178
RR1 Reach Resources Ltd 0.006 -14% 4,653,000 $13,370,354
MM1 Midasmineralsltd 0.19 -14% 37,405 $12,568,988

Monday is not for losers.

 

THINGS YOU MAY HAVE MISSED BECAUSE IT’S TOTALLY LABOUR DAY

West Wits Mining  (ASX: WWI)  just appointed Warwick Grigor as a Non-Executive Director following the resignation of  Tim Chapman.

You may now Grigor from such hits as:

  • Establishing Far East Capital as a 50:50 partner with Andrew Forrest in 1991, and
  • Founding Executive Chairman of Canaccord Genuity Australia.

“The Board is pleased that Mr Grigor has agreed to join the West Wits Board as a highly respected and experienced mining analyst, with an in-depth knowledge of all market-related aspects of the mining industry, said chairman Michael Quinert.

“Warwick’s extensive experience and network will be an asset as the Company advances uranium exploration and executes the development strategy of the 4.28Moz Gold Witwatersrand Basin Project (“WBP”). The Board would like to thank Tim for his efforts in progressing the Group’s strategic objectives whilst sharing his extensive experience in Australian financial markets as the Company transitioned from an explorer to developer.”

Platinum group metals focussed Future Metals NL (ASX:FME), says it has completed a placement of £500,000 (A$872,2961) with a number of High Net Worth Investors in the UK.

The terms are materially the same as the recently completed A$5.0 million placement and A$1.0 million share purchase plan, with firm commitments received for 7,142,856 new, fully-paid ordinary shares at a price of 7 pence (A$0.1221) representing a premium of circa 12% to the mid-market closing price on the Alternative Investment Market (AIM) in the UK.

AIM is a sub-market of the London Stock Exchange (LSE) designed to help smaller caps access capital a la the public market and LSE.

The aim is to lift FME’s liquidity on its AIM listing and help improve market presence in the UK, where there’s keen interest in PGM companies.

FME is also offering Placement Shares which come with one free attaching warrant for every three Placement Shares, exercisable at a price of 6p (A$0.105) and an expiry date of 11 June 2024.

FME says net proceeds from of the placement will help fund the company’s hunt for Ni-Cu-PGE sulphides at its Panton project, and its scoping study on the existing multi-million ounce PGM-Ni resource.

“The London Stock Exchange (AIM) has historically been the primary market for many PGM companies, typically with assets in South Africa and Russia. Future Metals, with its high-quality Panton PGM-Ni project in Australia, has potential to attract significant interest in the UK via its AIM quotation. We are therefore delighted to welcome new UK investors as shareholders and look forward to informing the market as we progress our exciting exploration programme and scoping study activities over the coming months,” said MD and CEO Jardee Kininmonth.

There’s nothing kava can’t fix (this should be the catchline) because Fiji Kava (ASX: FIJ),  says it has entered into a binding agreement to acquire Leilo Inc, in all stock acquisition and has completed a placement of $1.6m to sophisticated and institutional investors.

FIJ – in their own words – are a health and wellness company with operations in Australia, Fiji, and the USA, which produces natural products to reduce anxiety, promote relaxation, improve sleep, and support sports recovery and performance.

Let’s do some bullies!

● Leilo is the leading ready-to-drink (RTD) kava brand in the United States
● This acquisition furthers Fiji Kava’s foothold as the global leader in kava products
● The acquisition gives FijiKava access to Leilo’s more than 700 doors of retail distribution in
North America and growing market share on Amazon.com
● Consolidated Group revenues will be more than doubled by integration of Leilo Inc.
● Fiji Kava Limited will acquire 100% of Leilo stock in a share swap transaction
● Leilo’s five USA based employees will join The Calmer Co USA and Fiji Kava Limited team
● The transaction is expected to close on or before 31st October 2022
● Fiji Kava has completed a placement of $1.6m to sophisticated and institutional investors to

Cheers!

Trading Halts

Southern Cross Gold (ASX: SXG) – Pending an announcement in relation to material exploration results at the Sunday Creek Project

New Zealand Coastal Seafoods (ASX:NZS) – Pending an announcement in relation to a material acquisition

Nanoveu Limited (ASX:NVU) – Capital raise

Beacon Minerals Limited (ASX: BCN) – In relation to a material acquisition

 

 

The post Closing Bell: Meek Monday belies terrifying Tuesday RBA meet and awful OPEC idea; DNK up 30% on potash sale appeared first on Stockhead.

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