Closing Bell: Ahead of big date with US cash rate, ASX puts October to bed with brash November debut

ASX200 climbs a very laudable +0.85%
Property stocks (+1.9%) and Health Care (+1.24%) have led the gains
Small caps led by Loyalty Lithium, TG6 and Tambourah Metals

The Australian sharemarket has lifted strongly on the first day of the new trading month, after giving away about -3.5% during an awful October.

At 4.15pm in Sydney, the benchmark S&P/ASX 200 index closed up 57.6 points or +0.85% to 6838.3 points.

Via marketIndex

Earlier today, the benchmark was ahead by +0.28% at lunch. the All Ordinaries (XAO) index was also up +0.3% and the ASX Small Ords (XSO) had found +0.5%.

By match out, the usual afternoon ASX fade out just failed to materialise with a string run from the Property and Materials Sectors turning into a much more broad-based rally.

Local investors took their leads from some of the decent overnight business on Wall Street where the three major indices all progressed with some rarely sighted confidence ahead of tonight’s major event – the US cash rate decision – which will drop at 0500 hours here in Sydenham.

My alarm is set.

US stock futures have turned lower as traders brace for the impact of The Federal Reserve’s November policy decision, due to drop early in the AM Sydney time.

The outcome might already be a foregone conclusion – it is widely expected to hold interest rates steady – but how a priced-in but very fragile market responds could be interesting to watch.

In regular business on Tuesday in New York, all 11 benchmark S&P sectors ended the session higher led by real estate, financials and utilities.

The Dow rose +0.4%, the S&P 500 +0.7% and the Nasdaq +0.5%, as US indices climbed for a second session as October’s overselling attracts the opportunists.

It was another night of fairly mixed – let’s say hot and cold – corporate results, marginally rising US Treasury yields and the geopolitical background which continues to both deteriorate and add to broader economic uncertainty.

Pfizer last night reported its first quarterly loss since 2019 as demand for its COVID-19 vaccine crashed by 70%, tearing a big hole on the big pharma’s revenue.

ASX SECTORS ON WEDNESDAY

Only Consumer Staples and Utilities did not get in on the Wednesday arvo action on the ASX.

Property stocks (+1.9%) and Health Care (+1.24%) have led the gains.

Via MarketIndex

RIPPED FROM THE HEADLINES

Aussie home prices have risen for a ninth straight month

The 0.9% increase in property data firm CoreLogic’s capital city benchmark index released this morning describes an Aussie residential property market on the march, regardless of rising rates, inflation, cost of living pressures and all them other things.

These three cities have now seen price rises like this over the past 10 months:

Sydney (10.9%)

Perth (10.8%)

Brisbane (10.2%)

Research director Tim Lawless says CoreLogic’s measurement of national home values should touch into a new record high by mid-November, regardless of what the RBA does.

“At this rate of growth, we will see the national HVI reach a new record high mid-way through November, recovering from the -7.5% drop in values recorded over the recent downturn between May 2022 and January 2023,” Tim says.

CoreLogic Monthly Home Value Index (HVI) October

Via CoreLogic

This morning CBA’s head of Australian economics Gareth Aird said the turnaround since February, has been ‘quite remarkable’.

“Indeed the lift in housing values occurred in the midst of the RBA’s tightening cycle (recall that the RBA increased the cash rate by 25bp in February, March, May and June 2023),” Mr Aird added.

Freshly minted data disappointment from China

It’s another data miss out of Bejing on Wednesday afternoon – this time the China Caixin manufacturing PMI read for October.

The Caixin PMI has fallen into official contraction territory with a weaker-than-expected 49.5 read for last month, well down on September and well down on the 51.0 anticiapted read from economists.

The read may prompt further, perhaos more determined policy action from officials. Fingers crossed.

TODAY’S 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 % Volume Market Cap MGT Magnetite Mines 0.033 1000% 128,378 $62,808 AMD Arrow Minerals 0.002 100% 1,122,301 $3,023,765 TMB Tambourahmetals 0.18 57% 340,640 $9,538,141 HFY Hubify Ltd 0.021 50% 600,043 $6,945,908 CLE Cyclone Metals 0.0015 50% 2,380,034 $10,264,505 GHY Gold Hydrogen 0.43 48% 2,565,684 $16,507,677 TG6 Tgmetalslimited 0.475 44% 16,248,518 $13,299,509 BFC Beston Global Ltd 0.007 40% 2,555,865 $9,985,234 CHR Charger Metals 0.23 31% 550,831 $10,870,014 KNO Knosys Limited 0.032 28% 17,184 $5,403,467 DCL Domacom Limited 0.014 27% 618,771 $4,790,520 BRU Buru Energy 0.15 25% 4,695,258 $71,525,170 VRX VRX Silica Ltd 0.115 24% 744,690 $54,254,205 WML Woomera Mining Ltd 0.011 22% 11,648,941 $8,605,751 NRZ Neurizer Ltd 0.03 20% 494,651 $31,918,481 NAE New Age Exploration 0.006 20% 868,124 $8,969,495 TAS Tasman Resources Ltd 0.006 20% 1,000 $3,563,346 RAS Ragusa Minerals Ltd 0.045 18% 593,895 $5,418,754 AUE Aurumresources 0.13 18% 374,770 $3,455,000 CPM Coopermetalslimited 0.105 17% 40,005 $4,789,588 RNO Rhinomed Ltd 0.035 17% 4,003 $8,571,591 ATH Alterity Therap Ltd 0.007 17% 406,555 $14,639,386 ETR Entyr Limited 0.007 17% 178,571 $11,898,623 HLX Helix Resources 0.0035 17% 701,737 $6,969,438 VAL Valor Resources Ltd 0.0035 17% 2,000,000 $11,620,004

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Up almost 50% in arvo trade is Tambourah Metals (ASX:TMB).

The WA-focused critical minerals developer dropped a quarterly update last night continuing the rapid exploration and development of its flagship Tambourah Gold and Lithium project in the Pilbara.

The Tambourah goldfield is an advanced gold exploration project with lithium and gold development potential.

Importantly, Tambourah says it has “an exciting opportunity for further regional growth” through gold and lithium exploration at its Russian Jack and Nullagine projectsin the East Pilbara. The company has also expanded its Julimar Nth and WH Sth (Ni-PGE-Cu) projects in the SW terrane.

The company’s other projects include the Achilles Ni-PGE-Cu-Au in the NE Goldfields and the advanced Cheela Gold project.

TMB best quarterly bullies:

• Completed a 2200m RC drill program at the Tambourah gold project during the quarter.
• Tambourah is now a significant land holder in the Pilbara region with an expanded lithium exploration project portfolio following the acquisition of the Minrex Resources tenements.
• Tambourah recently completed a reconnaissance drill program at the Tambourah Nth lithium project – results pending.
• At Shaw River lithium project, TMB completed sampling and an 1800m RC drill program.
• At the Achilles Project – 22 high order priority 1 conductors have been identified in AEM data
• New conductors identified at Achilles are in areas previously untested for Ni-CuPGE mineralisation.
• Tambourah and the Chilean lithium producer Sociedad Quimica y Minera de Chile S.A. (SQM) (NYSE: SQM) have entered into an agreement providing SQM with an exploration earn-in across six of Tambourah’s Julimar Nth projects in Western Australia.

Meanwhile, a delighted Loyal Lithium (ASX:LLI) gave the ASX an update on maiden drilling at its Trieste Lithium Project, located in… yes, the James Bay Region of Québec, in Canada.

$LLI.ax is delighted to provide an update on its maiden drilling program at its Trieste Lithium Project with all 14 holes intercepting spodumene bearing pegmatite with intercepts of up to 74m.

— Loyal Lithium Limited (@LoyalLithium) November 1, 2023

“The drilling program is targeting Dyke #01, a large, prominent weather-resistant outcrop ridge, with all drill holes to date successfully intercepting spodumene bearing pegmatite. Dyke #01 remains open in all directions with drill core displaying large and abundant spodumene crystals from surface.”

There is much excitement from the Glithiumeratti.

$LLI

This is exactly what you want to see in Cores @LoyalLithium

Another Quebec Lithium Deposit being uncovered

All drill holes to date have intercepted spodumene bearing pegmatite at Dyke #01 which remains open in all directions

74.77m of spodumene bearing pegmatite… pic.twitter.com/uWSgNEg5yK

— PilbaraWanderer (@PilbaraWandy) October 31, 2023

TG Metals continues to climb – the stock is up almost 250% – after hitting paydirt at the Lake Johnston project a few days ago, with maiden holes intersecting high grade lithium of up to 2.28% over 9-12m widths, 200m apart.

The stock amassed the largest land package ever held by one exploration company within the Lake Johnston Greenstone Belt, saying the region has been “historically overlooked and underexplored” and only listed on the ASX in May last year with assets prospective for nickel, lithium, and gold in the Goldfields-Esperance region of WA.

Location of the Lake Johnston project. Pic: Supplied (TG6).

Neighbouring operators such as Charger Metals (ASX:CHR) have defined spodumene bearing pegmatites in proximal lithium prospects like Medcalf.

Soil sampling by TG Metals (ASX:TG6) defined lithium anomalies, which has culminated in a reverse circulation drill program to define orientations, thickness and grade of the Burmeister soil anomaly, which stretches over a 4.5km by 1.7km area.

Assays from the first drill holes into the Burmeister lithium soil anomaly have now returned high-grade lithium intercepts of up to 2.28% Li2O.

Five of the six holes completed, which were drilled to depths of between 120m and 132m, intersected multiple-stacked pegmatites with all pegmatite intervals hosting lithium mineralisation averaging 1.46% Li2O in spodumene.

Down-hole widths ranging from 9m to 12m and the better intercepts are 9m at 1.35% Li2O from a down-hole depth of 30m and 9m at 1.62% Li2O from 87m.

“These are exceptional initial drilling results especially since we have only tested such a small part of the soil anomaly,” according to CEO David Selfe.

Gold Hydrogen (ASX:GHY) says it’s locked onto significant concentrations of hydrogen and helium in its Ramsay 1 Well – which GHY reckons confirms historic measurement and demonstrating an active hydrogen system in the Ramsay Project area.

Here’s what they reckon they got:

Testing and laboratory results measured air-corrected hydrogen at 73.3% at 240m below ground level, consistent with the 76% air-corrected concentration of hydrogen reported in the Ramsay Oil Bore 1 in 1931.

“These measurements validate historical results, and confirm the presence of a hydrogen play at shallow depths in the Ramsay Project area,” the company reports.

“A major connected fracture zone was encountered in the Parara limestone, which is key for the migration of hydrogen from deeper sources to shallow zones.

“Helium was also detected with an air-corrected content of 3.6% at 892mMD depth. This is a relatively high concentration of helium which is a rare and valuable resource, and if found in commercial grades and quantities, could be a significant value-add to the Ramsay Project.”

Helium in its natural form is the rarest element in the universe – betcha didn’t know that. Globally there are projects producing helium at < 1% due to its high commercial value.

Managing director Neil McDonald:

“It is incredibly exciting that we have replicated the results of 100 years ago at 240m. With the additional find of helium, which could be a significant value-add to the project, we view these results as being better than planned.”

Next up, McDonald says, is the Ramsay 2 well – expected to spud in mid-November.

TODAY’S 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 % Volume Market Cap MTH Mithril Resources 0.001 -50% 443,500 $6,737,609 NGS NGS Ltd 0.008 -38% 2,271,387 $3,265,956 AXP AXP Energy Ltd 0.001 -33% 147,443,689 $8,737,021 EDE Eden Inv Ltd 0.002 -33% 13,855,923 $10,090,911 SIT Site Group Int Ltd 0.002 -33% 22,876,666 $7,807,471 ALC Alcidion Group Ltd 0.068 -30% 15,079,793 $123,232,028 PAR Paradigm Bio. 0.42 -30% 6,566,122 $167,788,050 ADS Adslot Ltd. 0.003 -25% 8,024,412 $12,897,982 CCE Carnegie Cln Energy 0.0015 -25% 861,673 $31,285,147 EXT Excite Technology 0.006 -25% 42,166 $9,673,934 PUA Peak Minerals Ltd 0.003 -25% 9,248,915 $4,165,506 PGY Pilot Energy Ltd 0.025 -24% 38,303,909 $34,239,401 MXC Mgc Pharmaceuticals 0.77 -23% 4,081 $4,427,969 EMP Emperor Energy Ltd 0.007 -22% 902,278 $2,419,762 S3N Sensore Ltd 0.09 -22% 64,367 $4,185,222 MGL Magontec Limited 0.36 -21% 182,952 $35,631,297 NSX NSX Limited 0.027 -21% 169,971 $13,640,734 LBT LBT Innovations 0.004 -20% 7,657,012 $1,779,502 MRQ Mrg Metals Limited 0.002 -20% 19,531,395 $5,514,797 SFG Seafarms Group Ltd 0.004 -20% 50,004 $24,182,996 ASH Ashley Services Grp 0.38 -19% 439,189 $67,668,675 ERG Eneco Refresh Ltd 0.017 -19% 552,584 $5,719,525 BSE Base Res Limited 0.11 -19% 3,836,466 $159,031,600 AMT Allegra Orthopaedics 0.04 -18% 24,489 $5,860,940 EG1 Evergreenlithium 0.2 -18% 202,005 $13,776,350

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