ASX Small Caps Lunch Wrap: Traders eye China’s 'bazooka' as Antilles Gold shines

Top Chinese leaders are set to announce new policies to boost growth, with the market hoping for a 'bazooka stimulus' to drive further rallies.

Trader await China’s “bazooka stimulus”. Pic: Getty Images

• ASX 200 flat midday with mixed gains and losses

• Mining stocks lift ASX as traders await China news

• RBA releases meeting minutes

Six of 11 ASX sectors had risen by midday on Tuesday, as traders waited for (hopefully) some big news on China’s stimulus plans.

But overall, the ASX 200 index was trading flattish, as gains in Real Estate, Energy and Mining were offset by losses in Tech.

Source: MarketIndex

Overnight, big tech stocks dragged Wall Street lower as traders adjusted their expectations for a smaller rate cut from the Fed Reserve next month.

At the moment, there’s  an 85 per cent chance of a 25 basis point cut at the Fed's November meeting, but the odds of no-cut has jumped to 15 per cent from zero just a week ago. 

Top Chinese economic leaders are expected to announce some new policies today, aimed at boosting growth following last month’s stimulus measures that sparked a massive rally in the Chinese stock market.

Beijing is facing a tough challenge to get the economy to grow by 5 per cent this year, and the market is now hoping for some type of “bazooka stimulus". 

But some experts are skeptical. 

"If the measures are not proven to be effective ... it will be even worse, because it means that not even the stimulus works," said Alicia Garcia Herrero at Natixis.

Iron stocks rallied ahead of the announcement and energy stocks were also on the rise, with Brent crude hitting over $US81 a barrel last night—the highest since August.

In the large caps space this morning, fertiliser and explosives maker Incitec Pivot (ASX:IPL) said its chief financial officer, Paul Victor, will be leaving the company. He’ll stay on as CFO until February 15. IPL’s share price fell 0.2 per cent. 

NRW Holdings (ASX:NWH) has landed a $360 million deal with Evolution Mining (ASX:EVN) for surface mining at Castle Hill in WA. Work is set to start in November and should wrap up by mid-2030. NRW’s shares climbed by 0.5 per cent.

And the RBA has this morning released minutes from its September board meeting, where it decided to keep the cash rate steady at 4.35 per cent.

The board members stressed that future decisions will depend on economic data. They also discussed scenarios where interest rates might need to stay high or be tightened further, particularly if consumer spending picks up due to rising household incomes.

The minutes noted: “Monetary policy could need to be tightened…should present financial conditions turn out to be insufficiently restrictive to return inflation to target.” 

"Returning inflation to target remains the board’s highest priority."

NOT THE ASX

Overnight, Wall Street mostly tumbled as traders adjusted their expectations for a smaller rate cut from the Fed Reserve next month.

The S&P500 fell by 0.96 per cent  after notching a four-week winning run, the blue chips Dow Jones was down by 0.94 per cent,  and the tech heavy Nasdaq had tumbled by  more than 1 per cent.

Wall Street's go-to measure of market volatility, the VIX, soared by 18 per cent to its highest level in two months.

The yield on the US 10-year note climbed 7 basis points to 4.03 per cent.

Brent crude surged by 4 per cent to above $US81 a barrel as tensions in the Middle East escalated.

A selloff in Big Tech companies pulled down stock prices, fuelled by concerns the Fed will choose a smaller rate cut next month after Friday’s blowout jobs report. 

Stocks like Amazon, Meta, and Tesla fell between two and three per cent, while Nvidia climbed by 2 per cent as the lone gainer among 'Mag 7' stocks. 

Alphabet sank 2 per cent after a judge decided the company must remove restrictions that stop developers from creating competing marketplaces to its Google Play Store.

Apple also fell more than 2 per cent after Jefferies analyst Edison Lee downgraded the stock from Buy to Hold, citing concerns about overly optimistic expectations for the new AI-enabled iPhones.

“Near-term expectations for iPhone 16 and even 17 are too high," Lee said in a note. 

ASX SMALL CAP WINNERS

Here are the best-performing ASX small cap stocks for October 8 :

Code	Name	Price	% Change	Volume	Market Cap
RIM	Rimfire Pacific	0.059	48%	14,163,797	$91,809,376
AAU	Antilles Gold Ltd	0.004	33%	19,033,558	$5,567,228
RNE	Renu Energy Ltd	0.002	33%	1,001,664	$1,206,201
PNT	Panthermetalsltd	0.026	30%	24,582,307	$4,706,973
88E	88 Energy Ltd	0.003	25%	19,383,146	$57,867,624
NTM	Nt Minerals Limited	0.005	25%	250,000	$4,069,612
PUR	Pursuit Minerals	0.003	25%	1,152,630	$7,270,800
PIQ	Proteomics Int Lab	0.800	21%	2,257,887	$86,461,794
AHK	Ark Mines Limited	0.230	21%	40,427	$10,534,818
MKR	Manuka Resources.	0.054	20%	3,733,035	$35,089,545
BMR	Ballymore Resources	0.150	20%	82,442	$22,091,323
CUL	Cullen Resources	0.006	20%	30,492	$3,467,009
MEL	Metgasco Ltd	0.006	20%	588,652	$7,287,934
AU1	The Agency Group	0.021	17%	72,015	$7,714,379
LNR	Lanthanein Resources	0.004	17%	259,999	$7,330,908
OVT	Ovanti Limited	0.004	17%	865,587	$4,669,045
PAB	Patrys Limited	0.004	17%	422,740	$6,172,342
PTR	Petratherm Ltd	0.053	15%	1,041,160	$12,250,713
AQX	Alice Queen Ltd	0.008	14%	397,000	$8,028,230
NSX	NSX Limited	0.032	14%	152,886	$12,817,867
HPR	High Peak Royalties	0.072	14%	57,726	$13,107,762
EME	Energy Metals Ltd	0.105	14%	125,571	$19,290,865
BCA	Black Canyon Limited	0.065	14%	68,503	$4,660,061
PLL	Piedmont Lithium Inc	0.205	14%	5,186,711	$73,877,760
TMG	Trigg Minerals Ltd	0.034	13%	18,702,201	$15,920,421

Antilles Gold (ASX:AAU) has set an ambitious production target of around 4500 tonnes per annum (tpa) for antimony from its La Demajagua mine in Cuba. Recent metallurgical tests conducted have led to revised production estimates. The mine is expected to produce approximately 50,000 tpa of a gold-arsenopyrite concentrate, along with around 5560tpa of a gold-silver-antimony concentrate.

Following alkaline leaching, about 3980tpa of antimony precipitate with an estimated 48 per cent antimony content will be produced. When blended with the gold-silver-antimony concentrate, the final product will yield roughly 9540tpa, containing significant amounts of gold, silver, and antimony.

With current metal prices, Antilles said the projected annual revenue from the gold-silver-antimony concentrate could reach around S$US84 million over the first nine years of operation.

Panther Metals (ASX:PNT) jumped after announcing that numerous gold nuggets were discovered at the Comet Well and Comet Well South project areas, including a striking gold in quartz specimen. These initial finds occurred during drill preparations, and subsequent detecting activities near the upcoming drill sites revealed even more nuggets. Additional detecting is currently ongoing across both project areas.

Also, assays have now been submitted for Burtville East, following up on a previous 600m RC programme conducted in 2022, which yielded impressive results. One drill hole, BVE006, showed 15m at 53.94g/t Au from 27m, with a standout intercept of 1m at 478g/t from 28m.

Ark Mines (ASX:AHK) has submitted a mining lease application for its Sandy Mitchell rare earths and heavy minerals project in northern Queensland. The application covers the acreage that forms the basis of the recently reported high certainty measured resource of 71.8Mt grading 1732.7 parts per million monazite equivalent. This resource underpins the completion of a scoping study, supports the application for this Mining Licence, and accelerates ongoing strategic partnership and offtake discussion

Ballymore Resources (ASX:BMR) announced a promising new gold-copper target at its Dittmer Project, near Proserpine in north Queensland. A recent high-resolution magnetic and radiometric survey revealed significant anomalies, including a large 1200m x 800m magnetic body beneath the historic Dittmer mine. 3D magnetic modelling suggests that this area sits above a copper-gold system, supporting earlier findings of elevated copper in the soil. Preparations are now under way to drill and test this exciting new target.

Uranium play, Energy Metals (ASX:EME) , has reported impressive results from its drilling campaign at the Bigrlyi Project, with multiple drillholes hitting high-grade uranium in the A2, A4, and A15 sub-deposits. Notable findings include 5.1m at 4,500 ppm eU3O8 from the A2 sub-deposit, and 1.1m at 8,600 ppm eU3O8 from the A15 sub-deposit.

The 2024 drilling program has now wrapped up, with all samples sent to the lab for chemical assays. The Bigrlyi Project, located about 350 km northwest of Alice Springs, is a joint venture project that aims to expand its current resource of 6.32 million tonnes at an average grade of 1530 ppm for a total of 9.66 kilotonnes of U3O8.

Black Canyon (ASX:BCA) has announced promising results from its W2 prospect in Wandanya, located 80 km south of the Woodie Woodie Manganese Mine. Significant assays include 5m at 33.2 per cent Mn and notable higher-grade intervals of up to 48.7 per cent Mn. The mineralisation shows impressive thickness and grade consistency over 240m and remains open for further exploration. The W2 area is thought to represent a new model for hydrothermal manganese enrichment in the Oakover Basin. Plans for metallurgical testing aim to produce a high-grade manganese concentrate.

ASX SMALL CAP LOSERS

Here are the  worst-performing ASX small cap stocks for October 8 :

Code	Company	Price	%	Volume	Market Cap
EXR	Elixir Energy Ltd	0.072	-56%	38,916,089	$197,473,782
HCD	Hydrocarbon Dynamic	0.002	-33%	119,602	$2,425,747
VPR	Voltgroupltd	0.001	-33%	9,951	$16,074,312
IVX	Invion Ltd	0.003	-25%	1,057,882	$27,066,367
YAR	Yari Minerals Ltd	0.003	-25%	816,630	$1,929,431
RIL	Redivium Limited	0.004	-20%	4,769,052	$13,734,274
TYX	Tyranna Res Ltd	0.004	-20%	1,050,000	$16,439,627
IMI	Infinitymining	0.035	-19%	344,182	$5,836,998
AKN	Auking Mining Ltd	0.005	-17%	1,000,000	$2,115,421
BP8	Bph Global Ltd	0.003	-17%	15,409	$1,189,924
FHS	Freehill Mining Ltd.	0.005	-17%	7,088,416	$18,471,167
OMA	Omegaoilgaslimited	0.250	-15%	1,444,491	$84,501,852
KOB	Koba Resources	0.115	-15%	21,222	$21,405,818
HTM	High-Tech Metals Ltd	0.125	-14%	20,000	$3,588,966
SBR	Sabre Resources	0.013	-13%	1,174,967	$5,894,429
IR1	Irismetals	0.200	-13%	708,814	$31,995,296
PV1	Provaris Energy Ltd	0.020	-13%	314,786	$14,512,249
ATH	Alterity Therap Ltd	0.004	-13%	225,000	$21,281,344
CRR	Critical Resources	0.007	-13%	6,143,992	$15,709,469
NAG	Nagambie Resources	0.014	-13%	834,962	$12,746,171
8CO	8Common Limited	0.035	-13%	67,980	$8,963,796
SPX	Spenda Limited	0.011	-13%	526,222	$55,243,151
COD	Coda Minerals Ltd	0.080	-11%	98,228	$15,776,330
ALM	Alma Metals Ltd	0.008	-11%	596,048	$13,883,936

Elixir Energy (ASX:EXR) dropped over 50% following the conclusion of operations at the Daydream-2 well, where the stabilised gas flow rate was lower than expected.

Although five out of six stimulated zones flowed gas, the final stabilised rate was only 1.0 MMCFPD, down from a maximum of 2.6 MMSCFD. This reduction was due to issues like condensate or water banking around the wellbore, which are common in early-stage gas plays and could be resolved with improved operational management.

Elixir, however, reported that all licence commitments for ATP 2044 have been met and the well will be retained for future production.

ICYMI – AM EDITION

Elevate Uranium (ASX:EL8) and its operating partner Energy Metals (ASX:EME) have struck more high-grade uranium at their Bigrlyi project about 350km northwest of Alice Springs in the Northern Territory.

The drilling to grow the current resource of 6.32Mt grading 1530ppm U3O8 – 21.3Mlbs contained U3O8 – returned outstanding results in excess of 1 per cent eU3O8 from the A2, A4 and A15 sub-deposits.

BRC2430 returned 5.1m at 4500ppm eU3O from 129m at A2, BRD2415 returned 5m at 3400ppm eU3O8 at A4 and BRC2428 returned 1.1m at 8600ppm eU3O8 from 129m at A15. All samples from the now completed drill program have been submitted to the laboratory for assaying.

Lumos Diagnostics (ASX:LDX) has completed the retail component of its 1 for 1.82 pro rata entitlement offer, adding about $6.9 million to its coffers.

Along with the institutional component of the offer, which raised ~$3.1 million, the company now has an additional $10 million to drive growth of its business. The company was recently awarded $US3 million in non-dilutive funding via a US government grant to support a CLIA waiver study and US FDA regulatory submission for its test to differentiate a bacterial versus non-bacterial etiology (cause of) respiratory infection.

Peel Mining (ASX:PEX) has a pep in its step following the encounter of oxide and supergene copper, gold, and silver mineralisation during recent drilling at the Wagga Tank-Southern Nights deposit in the south-central part of Cobar, NSW.

Stand out oxide results include 24m at 5.09g/t gold, 89g/t silver from 15m while sulphide assays include 66m at 6.01 per cent lead, 3.73 per cent zinc, 0.26 per cent copper, 32g/t silver and 0.47g/t gold from 100m.

Nearly all mineralised intercepts sit outside the existing 6.83Mt indicated-inferred resource, which remains open along strike. PEX reckons the results pave the way for further drilling which is set to take place later this quarter.

At Stockhead, we tell it like it is. While Ark Mines, Elevate Uranium and Lumos Diagnostics are Stockhead advertisers, they did not sponsor this article.

Originally published as ASX Small Caps Lunch Wrap: Traders eye China’s 'bazooka' as Antilles Gold shines