Lunch Wrap: ASX struggles as copper takes a beating

The ASX was wilting at noon under a sharp cut to copper prices after the bellwether metal dodged inclusion in US metal tariffs.

The ASX is reeling from a sharp slap down in copper prices, which plummeted 20pc after the US signalled the metal wouldn’t be subject to high tariffs. Pic: Getty Images

• Resources lead losses, down more than 2pc

• Copper tariff exemption slams prices down 20pc

• Info tech offers resistance, up 1.58pc

By Thursday lunchtime in the east, the ASX had its tail between its legs, down 0.2% and dragged lower by a mining sector that got absolutely poleaxed.

The culprit was a copper crash of historic proportions.

Copper prices plunged a jaw-dropping 20% in their biggest intraday fall since 1988.

The main surprise was that Trump’s new tariff plan left refined copper untouched, no 50% levy after all.

Most of the market had been pricing in a hit, so the sudden backflip caught traders off guard.

As a result, the mining sector fell more than 2% this morning, the worst of the bunch.

Source: Market Index

Source: Market Index

While the miners were getting pummelled, the tech sector soared after Microsoft blew Wall Street’s doors off with $US76.4 billion in revenue, beating expectations.

And while all that was happening, Jerome Powell and his mates at the Fed held rates steady last night, as expected.

When asked about a September cut, Powell refused to blink: “We have made no decisions about September,” he said.

That sent the odds of a September rate cut from 65% to 45% in no time.

Resources on struggle street

Back home, Rio Tinto (ASX:RIO) has reported a “solid” set of numbers in the second half, with strong output across iron ore, aluminium and copper lifting performance.

But a surprise tax hit, restructuring costs from the Arcadium deal, and soft earnings per share took the shine off.

Capex was down 15%, though, which helped free cash flow and trimmed debt. Rio’s shares were down 2%.

Over at Mineral Resources (ASX:MIN), the pain was even sharper.

The Chris Ellison-backed miner plunged 9% as brokers lined up to take the red pen to their ratings after its soft production report yesterday.

And still in large caps, AGL Energy (ASX:AGL) ticked 0.5% higher after confirming it would kick off construction on a 500-megawatt grid battery later this year, set to go live by late 2027.

Santos (ASX:STO), meanwhile, nudged up 1% after reporting its Pikka phase 1 project in Alaska is nearly 90% done. CEO Kevin Gallagher says the project, along with Barossa LNG, could boost production by 30% by 2027.

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for July 31 :

Security	Description	Last	%	Volume	MktCap
ASR	Asra Minerals Ltd	0.002	100%	1647649	$4,000,198
WEL	Winchester Energy	0.002	100%	1149999	$1,363,019
TOU	Tlou Energy Ltd	0.028	56%	76100	$23,374,518
LNR	Lanthanein Resources	0.0015	50%	722705	$3,734,001
NVQ	Noviqtech Limited	0.053	39%	3716535	$9,558,389
ALM	Alma Metals Ltd	0.006	33%	775964	$8,328,317
IS3	I Synergy Group Ltd	0.012	33%	1440676	$15,356,699
X2M	X2M Connect Limited	0.021	31%	884697	$6,960,909
I88	Infini Resources Ltd	0.16	28%	153756	$6,546,252
C1X	Cosmosexploration	0.083	28%	1066465	$7,050,329
DTM	Dart Mining NL	0.0025	25%	886063	$2,396,111
GGE	Grand Gulf Energy	0.0025	25%	539559	$5,640,850
PKO	Peako Limited	0.0025	25%	871167	$2,975,484
RAN	Range International	0.0025	25%	2380188	$1,878,581
TMK	TMK Energy Limited	0.0025	25%	550000	$20,444,766
AON	Apollo Minerals Ltd	0.008	23%	167672	$6,034,970
CXU	Cauldron Energy Ltd	0.0085	21%	5050886	$12,538,127
BDG	Black Dragon Gold	0.085	21%	1326160	$22,257,624
AAU	Antilles Gold Ltd	0.006	20%	769968	$11,895,340
AVE	Avecho Biotech Ltd	0.006	20%	3879386	$15,867,318
FBR	FBR Ltd	0.006	20%	860546	$28,447,261
PPK	PPK Group Limited	0.66	17%	286348	$51,309,061
GTR	Gti Energy Ltd	0.0035	17%	1675330	$11,167,964
TMS	Tennant Minerals Ltd	0.007	17%	1980638	$6,395,342
TSL	Titanium Sands Ltd	0.007	17%	315677	$14,068,483

Winchester Energy (ASX:WEL) has been reinstated to the ASX after clearing a regulatory hurdle by appointing two more non-executive directors and filling out the required three-person roster.

WEL is welcoming Jason Peterson, founder of CPS Capital Group, and David Wheeler, director and partner at boutique corporate advisory firm Pathways Corporate, to the board. The company is now seeking advice over a general meeting requirement.

Noviqtech (ASX:NVQ) has launched a new AI and blockchain-centred subsidiary, Quantum Intelligence Pty Ltd, with a platform capable of accelerating classical computing by up to 10 times with the NVIDIA CUDA-Q programming model.

NVQ says the new Quantum Intelligence platform will be a hybrid system designed for API and SaaS-style enterprise integration, available to the market under a subscription model starting with a Beta launch in September.

Alma Metals (ASX:ALM) upgraded its Briggs copper JV project resource this quarter, lifting it to 2Mt of copper, 73Mlb of molybdenum and 16.5Moz of silver.

ALM has also had some metallurgical success, obtaining high copper recoveries of 95% from Briggs ore and refining high-grade concentrates of up to 29% copper with locked-cycle froth flotation methods, a technology with fairly low power consumption requirements.

Cosmos Exploration (ASX:C1X) has made progress in developing synthetic formulations replicating Bolivian lithium brine chemistry, through EAU Lithium Pty Ltd’s work at Vulcan Energy’s laboratory in Germany.

C1X retains an exclusive option to fully acquire EAU, which is leading technology trials with the goal of using Vulcan’s Adsorption-Type Direct Lithium Extraction technology to process tricky high-magnesium Bolivian lithium brines.

ASX SMALL CAP LAGGARDS

Here are the worst performing ASX small cap stocks for July 31 :

Code	Name	Price	% Change	Volume	Market Cap
MHK	Metalhawk.	0.1825	-51%	2836709	$45,655,248
XPN	Xpon Technologies	0.007	-36%	11127746	$4,556,785
MEM	Memphasys Ltd	0.003	-25%	6293695	$7,934,392
3DP	Pointerra Limited	0.045	-21%	5280806	$45,889,377
IR1	Irismetals	0.09	-18%	803301	$19,575,532
GRE	Greentechmetals	0.066	-18%	708856	$9,071,611
MVP	Medical Developments	0.57	-17%	181008	$77,170,952
ECT	Env Clean Tech Ltd.	0.0025	-17%	193524	$12,046,306
PLN	Pioneer Lithium	0.115	-15%	10000	$5,961,827
SER	Strategic Energy	0.006	-14%	1621243	$4,697,233
TNC	True North Copper	0.33	-13%	297189	$48,405,459
NYM	Narryermetalslimited	0.04	-13%	8500	$8,098,521
BMG	BMG Resources Ltd	0.007	-13%	200000	$6,755,177
CHM	Chimeric Therapeutic	0.0035	-13%	3475000	$12,996,494
KGD	Kula Gold Limited	0.007	-13%	365415	$7,370,029
KRR	King River Resources	0.007	-13%	960000	$11,708,696
MGU	Magnum Mining & Exp	0.007	-13%	100000	$18,544,297
W2V	Way2Vatltd	0.007	-13%	3279583	$13,595,757
NOX	Noxopharm Limited	0.11	-12%	66995	$36,529,744
ASE	Astute Metals NL	0.022	-12%	1679082	$15,453,743
TAS	Tasman Resources Ltd	0.015	-12%	30870	$4,748,997
MAG	Magmatic Resrce Ltd	0.045	-12%	173233	$22,554,786
OD6	Od6Metalsltd	0.024	-11%	1219984	$4,332,635
DUN	Dundasminerals	0.017	-11%	533105	$2,037,149
JNS	Januselectricholding	0.135	-10%	314300	$13,487,139

IN CASE YOU MISSED IT

Cosmos Exploration (ASX:C1X) is continuing testing of lithium brines from Bolivia’s Salar de Coipasa and Salar de Pastos Grandes using Vulcan’s A-DLE technology.

Axel REE’S (ASX:AXL) initial metallurgical testing recovers ionic and non-ionic REEs along with gallium from its Caladão project in Brazil.

Nova Minerals (ASX: NVA) has welcomed big progress towards development of an all-weather road that will provide cost savings for its flagship Estelle gold and critical minerals project.

St George Mining (ASX:SGQ) is looking to scale up its Araxá project in Brazil from a fresh discovery outside the current resource.

White Cliff Minerals (ASX:WCN) has added another drill rig to its drilling program at the Rae copper project in Canada.

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

Originally published as Lunch Wrap: ASX struggles as copper takes a beating