Closing Bell: Telix, banks lift ASX; but Newmont and Fortescue trip over soaring costs

The ASX rebounded on Thursday despite drops in Newmont and Fortescue on disappointing updates, while WiseTech continued its downward trend.

Newmont and Fortescue trip over weak results. Picture: Getty Images

• ASX ends very modestly lower after a mixed session

• Newmont and Fortescue shares drop on disappointing updates

• WiseTech continues its slide as investors start to grumble

Aussie shares swung to a flattish close on Thursday after earlier losses.

Overnight in the US, things weren’t too great either, with the tech-heavy Nasdaq dropping 1.6 per cent as tech giant Apple said that its iPhone orders had been down significantly.

Tesla shares, however, posted an 8 per cent gain in post-market trading after its Q3 numbers surpassed analysts' predictions. The company’s net income rose 17.3 per cent year-over-year to $2.17bn, fuelled by a 6.4 per cent increase in vehicle sales.

On the ASX today, Telix Pharmaceuticals (ASX:TLX) helped the Healthcare sector higher after rising 2.6 per cent.

Telix said it was moving closer to launching its second or third commercial product after the FDA accepted its New Drug Application for Pixclara, a diagnostic agent for gliomas (brain cancers).

Bank stocks also helped to lift the market with Commonwealth Bank (ASX:CBA) seeing a 1.2 per cent rise after a tough week. 

Source: MarketIndex

However gold stocks, alongside some large cap names, struggled.

Newmont Corporation (ASX:NEM) and Brambles (ASX:BXB) posted less-than-great updates, dragging their share prices down. 

Newmont fell almost 6 per cent after its Q3 update disappointed investors. While gold production increased by 4 per cent to 1.7 million ounces—roughly in line with expectations—the company reported higher-than-expected costs. As a result, its earnings per share of 81 US cents missed the consensus estimate by 5 cents. 

Fortescue Metals Group (ASX:FMG) also dropped more than 3 per cent after reporting a record iron ore shipment quarter, but there was big concern around costs and pricing. Fortescue reported C1 costs of $US20.16 per wet metric tonne (wmt), which was significantly higher than the consensus estimate of $US19.20 wmt. 

Super Retail Group (ASX:SUL) , the owner of  sports retail brand Rebel, fell almost 5 per cent after the company said it would discount more products to clear space for new stock ahead of the holiday season.  Sales at Supercheap Auto, its largest division, have particularly decelerated over the past nine weeks.

Still in large caps, the embattled WiseTech Global (ASX:WTC) wasdragging down the Tech sector once again, down a further 6 per cent following a 16 per cent drop over the past six sessions, amid revelations about founder Richard White's personal life.

Across the region, Asian stocks mostly fell on Thursday, as worries about China’s economic outlook lingered, while the yen managed to rise after a three-day slump.

In tech news, Taiwan Semiconductor Manufacturing (TSMC) halted shipments to a client due to concerns about US sanctions; while rival chipmaker SK Hynix in South Korea saw its shares rise after reporting record profits.

ASX SMALL CAP LEADERS

Thursday’s best-performing small cap stocks:

Code	Name	Price	% Change	Volume	Market Cap
IEC	Intra Energy Corp	0.002	50%	250,000	$1,690,782
DGR	DGR Global Ltd	0.014	40%	3,030,285	$10,436,960
OVT	Ovanti Limited	0.029	38%	97,108,236	$42,633,057
BNL	Blue Star Helium Ltd	0.004	33%	496,632	$7,293,320
CRB	Carbine Resources	0.004	33%	502,857	$1,655,213
NTM	Nt Minerals Limited	0.004	33%	321,321	$3,632,709
ASQ	Australian Silica	0.043	30%	1,378,926	$9,301,392
OMX	Orangeminerals	0.032	28%	629,389	$2,735,890
GBE	Globe Metals &Mining	0.047	27%	2,400	$25,609,661
88E	88 Energy Ltd	0.003	25%	734,996	$57,867,624
AKN	Auking Mining Ltd	0.005	25%	547,781	$1,468,258
HOR	Horseshoe Metals Ltd	0.010	25%	1,548,736	$5,306,254
LPD	Lepidico Ltd	0.003	25%	2,039,543	$17,178,250
SUH	Southern Hem Min	0.040	25%	638,810	$23,559,681
TMK	TMK Energy Limited	0.003	25%	1,025,042	$15,183,224
GRV	Greenvale Energy Ltd	0.031	24%	1,665,241	$11,843,222
WNX	Wellnex Life Ltd	0.765	23%	45,171	$17,384,025
CVR	Cavalierresources	0.140	22%	37,500	$6,214,121
BCB	Bowen Coal Limited	0.009	21%	21,812,119	$20,513,428
HTA	Hutchison	0.029	21%	52,473	$325,740,206
DME	Dome Gold Mines Ltd	0.120	20%	8,000	$37,692,866
AVE	Avecho Biotech Ltd	0.003	20%	6,565,978	$7,923,243
PRX	Prodigy Gold NL	0.003	20%	1,317,549	$5,831,140

Bowen Coking Coal (ASX:BCB) released its quarterly on Thursday morning, announcing that “robust mining performance” had delivered 769Kt ROM for the quarter, while the company had managed a mining cost reduction of 7 per cent to $53/ROMt including boxcut costs and 52 per cent lower than this time last year. That has led to 444Kt of saleable coal produced with sales of 415Kt recorded in the quarter, at an average coal price of  $216/t, down slightly on pcp.

Auking Mining (ASX:AKN) was rising today on news that the company has completed the purchase of the Grand Codroy uranium exploration project in Newfoundland,Canada. The project features uranium mineralisation within extensive, organic-rich siliciclastic rocks that is similar to sandstone-hosted uranium districts in the western US, and exploration work has returned high-grade historical rock samples including Sample 153: >20,000ppm (2 per cent) Cu and 435ppm U, and Sample 3522: >20,000ppm (2 per cent) Cu and 400ppm U.

Adelong Gold (ASX:ADG) was up on news that it has entered a binding farm-in agreement with Great Divide Mining (ASX:GDM) for a staged acquisition of up to 51 per cent interest in the Adelong Gold Project. Under the agreement, GDM is set to invest $300,000 for an initial 15 per cent stake in Challenger Gold Mines (following successful due diligence), and will earn a further 36 per cent interest upon achieving first gold production from the refurbished Adelong Gold Plant within 12 months, bringing their total interest to 51 per cent.

Earlier, Chimeric Therapeutics (ASX:CHM) was up on news that the company’s Phase 1B ADVENT-AML clinical trial had completed enrolment of relapsed or refractory acute myeloid leukaemia subjects in the dose-finding portion of the clinical trial. The trial is an investigator-initiated study currently open to enrolment at The University of Texas MD Anderson Cancer Center under principal investigator Abhishek Maiti MD, assistant professor in the Department of Leukaemia.

Duketon Mining (ASX:DKM) was riding high on the release of its September quarterly report, which goes into detail of early exploration activities under way at the Barlee gold and lithium project, 200km north of Southern Cross in WA. Various programs including desktop reviews, field reconnaissance, mapping and rock-chip sampling are on the go with a number of incoming proposals from external third parties being reviewed as well. Duketon’s tenement package lies along strike and adjacent to Regis Resources’ (ASX:RRL) landholding including the Rosemont, Garden Well and Moolart Well gold mines.

TMK Energy (ASX:TMK) reminded eligible shareholders that its entitlement issue closes tomorrow, Friday,  October 25, at 5pm AWST, with no extensions. Many shareholders, including the board and management, have shown strong support for the offer, taking up significant portions of their entitlements. Currently, the second pilot well (LF-06) is drilling at 226m in Mongolia, with further updates expected as drilling progresses. CEO Dougal Ferguson encourages all eligible shareholders to consider this opportunity to participate in the company's success before the deadline.

Greenvale Energy (ASX:GRV) rose after announcing positive results from its Liquefaction Test Program 5, conducted by the University of Jordan for its Alpha Torbanite Project in Queensland. This program aimed to improve the viscosity of the bitumen product, with results suggesting that a premium-grade C170 product could be achieved with further adjustments.

The tests explored various conditions, including temperature and pressure, to maximise bitumen yield and quality. While viscosity measurements were limited due to small sample sizes, the findings indicate that optimising these conditions could lead to a product that meets the desired specifications. The Greenvale Board will now evaluate the results to decide on the next steps for the project.

Wellnex Life (ASX:WNX) said it was progressing with its dual listing on the London Stock Exchange (LSE) after announcing plans in April. The company successfully completed a placement with UK investors at $1.40 per share, showing strong support for its move. Wellnex expects to generate a significant portion of its revenue from the UK and Europe, particularly with its Haleon partnership. The company is finalising the necessary regulatory steps, including those related to its medicinal cannabis business, and aims to complete the listing by the end of 2024. An extraordinary general meeting held on  September 26 approved the issuance of shares to support this process, which will enhance its international presence and investor reach.

And, Rhythm Biosciences (ASX:RHY) said it hopes to be able to get its blood-based bowel cancer screening test to market.

In a prezzo released this morning, Rhythm says it is in the “final stages of development” of the second-generation version of its lead assay, Colostat. Colostat shows great promise in replacing the maligned ‘poo test’, which is less accurate and not exactly user-friendly. The federal government’s national program provides free poo tests for those aged between 45 to 74. But the ‘ick’ factor means participation is low which is a pity because (a) it saves lives and (b) the program costs a sh*tload to run.

ASX SMALL CAP LAGGARDS

Thursday’s worst-performing small cap stocks:

Code	Name	Price	% Change	Volume	Market Cap
ICU	Investor Centre Ltd	0.003	-40%	2,807,636	$1,522,557
CDD	Cardno Limited	0.150	-38%	527,101	$9,374,559
RLC	Reedy Lagoon Corp.	0.002	-33%	136,500	$1,858,622
TEM	Tempest Minerals	0.006	-25%	10,658,096	$5,018,158
TOY	Toys R Us	0.050	-23%	299,517	$9,832,040
M4M	Macro Metals Limited	0.012	-20%	38,596,382	$54,346,604
TZN	Terramin Australia	0.080	-20%	615,767	$211,656,272
RIL	Redivium Limited	0.004	-20%	760,250	$13,734,274
MOV	Move Logistics Group	0.170	-19%	10,059	$26,798,944
IBX	Imagion Biosys Ltd	0.052	-19%	354,529	$2,281,379
ARC	ARC Funds Limited	0.100	-17%	87,582	$4,695,104
LOT	Lotus Resources Ltd	0.263	-17%	25,701,485	$577,573,751
ERA	Energy Resources	0.003	-17%	11,932,307	$66,444,898
FHS	Freehill Mining Ltd.	0.005	-17%	303,601	$18,471,167
GTI	Gratifii	0.005	-17%	156,000	$12,895,177
AIV	Activex Limited	0.011	-15%	50,691	$2,801,534
RMI	Resource Mining Corp	0.011	-15%	56,987	$8,480,521
SBW	Shekel Brainweigh	0.041	-15%	142,517	$10,946,939
CTN	Catalina Resources	0.003	-14%	1,000,000	$4,334,704
ILA	Island Pharma	0.120	-14%	302,828	$21,783,636
LDR	Lode Resources	0.120	-14%	822,731	$14,949,780

IN CASE YOU MISSED IT

Antipa Minerals’ (ASX:AZY) updated scoping study has delivered NPV and IRR estimates of up to $1.2bn and 79 per cent respectively for its Minyari Dome project, highlighting the attractiveness of a standalone gold-focused development.

Greenvale Energy’s (ASX:GRV) Liquefaction Test Program 5 conducted by the University of Jordan has successfully produced premium-grade C170 bitumen with strong recovery rates using a blend of ore material sourced from its Alpha Torbanite project.

Suvo Strategic Minerals’ (ASX:SUV) subsidiary Climate Tech Cement has executed a shareholders’ agreement with PERMAcast R&D for 50/50 ownership of EcoCast Concrete and EcoCast Solutions to bring low-carbon concrete products and projects to market.

Pursuit Minerals (ASX:PUR) has announced that it has entered into commitment letters, to secure $1 million in immediate funding through the issue of loan notes which will automatically convert into shares and options, subject to shareholder approval to be sought at the company’s annual general meeting on November 28.

Proceeds will be principally used to fund the ongoing works at the Rio Grande Sur project, with a particular focus on progressing towards first production of lithium carbonate from its 250tpa plant in Salta, as well as “feasibility studies for the larger commercial operation and assessment of complementary acquisitions opportunities in the critical metals’ asset classes of lithium and copper”.

TRADING HALTS

Brightstar Resources (ASX:BTR) – pending an announcement regarding a response to an ASX Price Query.

Great Divide Mining (ASX:GDM) – potential material transaction.

Orthocell (ASX:OCC) – pending an announcement in relation to a proposed capital raising.

Mithril Silver and Gold (ASX:MTH) – pending an announcement in relation to a proposed capital raising.

Lefroy Exploration (ASX:LEX)  – pending release of an announcement regarding a capital raising.

Nyrada (ASX:NYR) – pending an announcement regarding a proposed capital raising.

QX Resources (ASX:QXR) – pending an announcement in respect of a capital raising.

Sultan Resources (ASX:SLZ) – pending an announcement in relation to a capital raising.

Cosmo Metals (ASX:CMO) – pending an announcement regarding a capital raising.

Asian Battery Metals (ASX:AZ9) – following receipt of material assay results which requires time to compile and release to the market.

Eureka Group (ASX:EGH) – pending an announcement regarding a capital raising.

HMC Capital (ASX: HMC) – pending an announcement in connection with a proposed acquisition and an equity raising.

OncoSil Medical (ASX:OSL) – pending an announcement in relation to a capital raise.

At Stockhead we tell it like it is. While Antipa Minerals, Greenvale Energy, Pursuit Minerals and Suvo Strategic Minerals are Stockhead advertisers, they did not sponsor this article.

Today’s Closing Bell is brought to you by Webull Securities. Webull Securities (Australia) Pty. Ltd. is a CHESS-sponsored broker and a registered trading participant on the ASX.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Closing Bell: Telix, banks lift ASX; but Newmont and Fortescue trip over soaring costs