ASX Small Caps Lunch Wrap: Local bourse sleepwalks to lunch, PLS falls 5pc

ASX traders and investors appear to be treading carefully on a Thursday in which global conflict headlines are still dominating.

Pic: Getty Images

• ASX edges down at the half-way point in a quiet session

• Pilbara Minerals falls 5pc as share block sale is reported

• Westpac sells auto finance unit for up to $1.6 billion

The ASX has edged down slightly by 0.04% this morning as traders navigate the ongoing tensions in the Middle East.

In a quiet trading session no ASX sector has moved more than 1% in either direction aside from real estate.

Overnight, it was similarly quiet with all major indexes moving up less than 0.1%.

Traders are exercising caution following Iran’s recent strike on Israel, anticipating a retaliatory response from Israel but uncertain about when it might occur.

When asked last night if he would support an Israeli retaliatory attack, President Biden replied, “The answer is no.”
Biden added that he was scheduled to speak with PM Benjamin Netanyahu and noted that the G-7 was preparing a statement to help prevent further escalation.

Energy stocks on the ASX pulled back today following yesterday’s rally, as oil prices steadied after a 5% surge.

In the large caps space this morning, lithium miner Pilbara Minerals (ASX:PLS) slumped 5% after a report from the AFR suggested that Morgan Stanley and Bank of America were trying to sell a ~$270m block of PLS shares.

The news pushed other lithium plays like MinRes (ASX:MIN) and IGO (ASX:IGO) lower by over 1%.

Westpac (ASX:WBC) also slipped 1% after announcing that it was selling its auto finance loans and lease receivables to Resimac Group (ASX:RMC) for between $1.4 billion and $1.6 billion, with the deal expected to close in the first half of 2025.

The move wraps up Westpac’s exit from the auto finance sector, following a partial sale in 2021, and is not anticipated to significantly affect its financial results.

Source: Market Index

NOT THE ASX

Data released on last night indicated that US companies added more jobs than anticipated last month, which contrasts with other signals pointing to a slowing labour market.

The upcoming non-farm payrolls report on Friday will provide another check for the overall health of the US economy, and will influence the Fed’s upcoming interest rate decision.

“Friday’s monthly jobs report will have the final word on the current jobs picture, and more than likely, on near-term market sentiment,” said Chris Larkin at E*Trade.

Oil prices steadied a little after the 5% jump yesterday, with Brent rising by 1.6% to US$74.60 a barrel.

The crude call options market indicates that traders are concerned about potential supply disruptions, as evidenced by the significant buying activity in options with a strike price of US$100 per barrel.

“As long as oil prices remain below $100 per barrel and corporate profits remain strong, that is supportive of higher stock prices,” said Mary Ann Bartels at Sanctuary Wealth.

In stock news, Tesla fell by 3.5% after its Q3 delivery numbers came in lower than expected, as discounts and financing deals didn’t attract enough buyers for its older electric vehicles.

With growing competition and a slowdown in EV demand, experts believe Tesla could be facing its first-ever drop in annual deliveries after years of rapid growth.

But investors are still hopeful about Tesla’s event in Los Angeles on October 10, where the company is set to reveal a new robotaxi and shift focus to AI tech.

READ: Nasdaq Wrap: Should investors buy Tesla before October 10, and is Microsoft gifting Nvidia's holders?

Apple was up slightly after a JPMorgan survey found that more people want to buy iPhones compared to last year, but it’s not due to the new AI features.

The report showed that 68% of about 500 surveyed consumers are interested in getting a new iPhone, and they wanted a faster device with 5G connectivity not AI features.

In Asia today, the Japanese Nikkei index rose another 2% today after the nation’s new prime minister damped speculation about another interest-rate increase.

His statement weakening the Yen, which fell to a more than one-month low against the US dollar. As we know, Japan’s export-driven stock market relies on a weaker yen for support.

Bank of Japan official Asahi Noguchi is set to speak later today, potentially offering investors further clarity.

ASX SMALL CAP WINNERS

Here are the best-performing ASX small cap stocks for October 3 :

Code	Name	Price	% Change	Volume	Market Cap
XPN	Xpon Technologies	0.011	57%	2,090,905	$2,537,090
AKN	Auking Mining Ltd	0.006	50%	3,304,246	$1,410,281
ERL	Empire Resources	0.003	50%	1,418,392	$2,967,826
VML	Vital Metals Limited	0.003	50%	6,500,000	$11,790,134
VAR	Variscan Mines Ltd	0.01	43%	2,300,628	$3,101,003
FIN	FIN Resources Ltd	0.007	40%	244,795	$3,246,344
ERA	Energy Resources	0.011	38%	9,341,177	$177,186,394
ILA	Island Pharma	0.11	38%	3,061,577	$10,151,108
H2G	Greenhy2 Limited	0.004	33%	4,743,788	$1,794,553
RBR	RBR Group Ltd	0.002	33%	2,620,000	$2,451,607
VRC	Volt Resources Ltd	0.004	33%	1,014,093	$12,476,034
HPC	The Hydration Company	0.03	30%	1,779,283	$7,013,001
NYR	Nyrada Inc	0.11	26%	1,946,169	$15,852,157
G88	Golden Mile Res Ltd	0.015	25%	1,108,093	$4,934,674
GTR	Gti Energy Ltd	0.005	25%	1,717,378	$11,161,224
IBG	Ironbark Zinc Ltd	0.0025	25%	944	$3,667,296
HIQ	Hitiq Limited	0.017	21%	312,500	$4,925,830
PH2	Pure Hydrogen Corp	0.17	21%	1,236,195	$50,887,315
CC9	Chariot Corporation	0.145	21%	136,644	$10,755,343
PFT	Pure Foods Tas Ltd	0.018	20%	21,325	$1,831,384
GES	Genesis Resources	0.006	20%	300,000	$3,914,206
INV	Investsmart Group	0.13	18%	5,000	$15,693,753
AJX	Alexium Int Group	0.013	18%	12,151	$17,312,666
FRB	Firebird Metals	0.135	17%	148,815	$16,371,561

Island Pharmaceuticals (ASX:ILA) shot up early doors this morning after coming off a trading halt with some good news. The company has secured $3.5m in new funding from some notable names.

Subject to shareholder approval, the placement was supported by well-known biotech names including Dr Daniel Tillett, the head of cancer drug repurposer Race Oncology (ASX:RAC).

Hong Kong-based fund manager, Angus Walker also chipped in, as did Island co-founder and major investor, Dr Bill Garner, substantial shareholder Jason Carroll and recently appointed director Chris Ntoumenopolous.

The fresh funding will go towards the completion of the company’s ISLA-101 Phase 2a/b clinical trial in dengue fever, following dosing of Phase 2a subjects, announced earlier today. The capital will also help advance the due diligence program for antiviral therapeutic, Galidesivir.

For more coverage on this, read this morning's Health Check column by Tim Boreham.

Meanwhile, in ressie land, Golden Mile Resources (ASX:G88) has announced further encouraging results from its Pearl Copper project in Arizona, USA. It’s talking sighting of “visible copper” with pXRF results highlighting polymetallic potential including: copper values up to 13.4%, lead values up to 1.29% and zinc values up to 7.22%.

And Chariot Corporation (ASX:CC9) is swinging high after revising its strategy for the Black Mountain hard rock lithium project in Wyoming, US. It notes it will shift from exploring for a large-scale resource to testing the viability of establishing a smaller-scale “pilot mine” at Black Mountain, with the goal of supplying spodumene concentrate to several lithium hydroxide refineries under construction in the southwestern United States.

ASX SMALL CAP LOSERS

Here are the worst-performing ASX small cap stocks for October 3 :

Code	Company	Price	%	Volume	Market Cap
WML	Woomera Mining Ltd	0.002	-33%	370,000	$6,165,223
ALR	Altair Minerals	0.003	-25%	10,474,702	$17,186,310
PAB	Patrys Limited	0.003	-25%	280,000	$8,229,789
IBX	Imagion Biosys Ltd	0.036	-22%	285,633	$1,639,741
XGL	Xamble Group Limited	0.022	-21%	505,040	$8,292,399
OVT	Ovanti Limited	0.004	-20%	4,115,532	$7,781,742
IMI	Infinity Mining	0.035	-19%	160,750	$5,836,998
LPD	Lepidico Ltd	0.0025	-17%	1,077,420	$25,767,375
PRM	Prominence Energy	0.005	-17%	16,667	$2,335,058
RIM	Rimfire Pacific	0.036	-14%	4,534,459	$96,399,845
UCM	Uscom Limited	0.012	-14%	3,101	$3,506,678
AAU	Antilles Gold Ltd	0.0035	-13%	5,932,907	$7,422,971
ATH	Alterity Therap Ltd	0.0035	-13%	102,280	$21,281,344
BNL	Blue Star Helium Ltd	0.0035	-13%	207,496	$9,724,426
ETM	Energy Transition	0.022	-12%	1,885,077	$35,217,717
GBZ	GBM Rsources Ltd	0.008	-11%	811,000	$10,410,200
HLX	Helix Resources	0.004	-11%	550,000	$14,688,872
BRN	Brainchip Ltd	0.2275	-11%	12,828,978	$500,429,334
AKG	Academies Aus Grp	0.125	-11%	1	$18,566,025
BEO	Beonic Ltd	0.025	-11%	50,000	$17,646,450
PSL	Paterson Resources	0.017	-11%	178,573	$8,664,720
SYR	Syrah Resources	0.3	-10%	5,725,323	$346,688,742
MTH	Mithril Silver Gold	0.49	-10%	1,961,262	$56,176,541
CXU	Cauldron Energy Ltd	0.02	-9%	2,723,443	$27,214,674
EPM	Eclipse Metals	0.005	-9%	25,000	$12,379,705

IN CASE YOU MISSED IT

Chariot Corporation (ASX:CC9) has revised its strategy for its Black Mountain project in Wyoming, USA, and now envisions a shift from exploring for a large-scale resource to instead testing the viability of a pilot mine at the project that could rapidly produce spodumene concentrate to capitalize on the growing lithium supply deficit in the US market.

The contemplated modular plant design is expected to reduce upfront costs and offer flexibility to scale up rapidly, and the company says its long-term pilot mine strategy could provide short-term cash flow and potentially could optimize the development of larger-scale mining operations in the future.

The plan near-term is for 4,300m of Phase 2 RC drilling to define a high-priority, small-scale lithium resource to underpin the pilot mine and establish the foundation for future larger-scale resource definition.

Antipa Minerals (ASX:AZY) has appointed Mark Rodda as executive chair, effective today.

Rodda has been a director of Antipa since 2010, and brings nearly 30 years of experience as a lawyer and corporate consultant, with an extensive background in legal, commercial, and corporate management roles within the resources sector.

The company says his expertise is well aligned with its exploration and development plans in the Paterson Province, home to its flagship Minyari Dome gold-copper project.

The Paterson Province is attracting significant new investment and investor attention with its world-class gold and copper operations and development projects, including the Telfer mine and processing facility, Greatland Gold's (LSE:GGP) Havieron development project, and Rio Tinto’s (ASX:RIO) Winu development project.

With Rodda’s particular skill set in legal governance, project development, and corporate strategy, Antipa says its well-positioned to maximise the value of its portfolio of strategic interests, while rapidly advancing the exploration and advancement of the Minyari Dome project.

Summit Minerals (ASX:SUM) has appointed Jamie Wright as a non-executive director, effective immediately.

Wright brings a wealth of experience in the minerals sector, including as the managing director of Global Lithium Resources (ASX:GL1) where he led the company through an IPO and a period of substantial growth.

“His extensive experience in the critical minerals sector from exploration to development will complement our strategic direction as we continue to explore and develop our asset portfolio. Jamie's insights will be instrumental in guiding Summit Minerals as we progress our Equador niobium and tantalum project,” said managing director Gower He.

At Stockhead, we tell it like it is. While Chariot Corporation, Antipa Minerals, Summit Minerals, Golden Mile Resources and Island Pharmaceuticals are Stockhead advertisers, they did not sponsor this article.

Originally published as ASX Small Caps Lunch Wrap: Local bourse sleepwalks to lunch, PLS falls 5pc