Lunch Wrap: Oil stocks drag down ASX, but KalGold triples after ripper gold find

ASX dips after yesterday’s rally, Amazon drops on a weak forecast, and Kalgoorlie triples after a big gold find.

Kalgoorlie triples after gold find. Picture via Getty Images

• ASX slips after yesterday’s rally, eyes on US jobs report

• Amazon drops amid weak forecast, but AI still trending

• Kalgoorlie triples after gold find

The ASX200 retreated by 0.1% on Friday morning, though the index is still close to its record high after yesterday’s 1% rally.

Investors seem to be in wait-and-see mode, looking to the upcoming US jobs report (due later today US time) to get a sense of whether the Federal Reserve might ease interest rates further.

Overnight, Wall Street had a mixed session. The Dow Jones slipped 0.3%, while the S&P 500 edged up by more than 0.4% and the Nasdaq gained 0.5%.

Amazon dropped 4% after it posted a disappointing Q1 forecast, adding to concerns over cloud tech sales as Microsoft and Google also missed expectations for their cloud business.

Nevertheless, artificial intelligence (AI) is still a very hot topic in earnings calls, with a record 50% of S&P 500 companies mentioning it during these calls.

“This isn’t an amazing result for investors, but it’s important not to be too short-sighted and instead look ahead,” said Josh Gilbert at eToro.

“As AI capacity grows, so will revenue and profit. That may not happen overnight, but some patience may be needed for investments to bear fruit."

Back on the ASX, six out of the 11 sectors opened in the green, but like yesterday, energy once again took the biggest hit.

Energy-related stocks got hammered after a wild ride in oil prices overnight. Brent crude slipped almost 1%, landing at US$74 a barrel.

Oil had a volatile session after US President Trump pushed for more oil production in the US, while also pushing for tighter sanctions on Iran.

This is where things stood at about lunch time, AEDT:

Source: Market Index

Source: Market Index

In large caps news, Domino's Pizza Enterprises (ASX:DMP) surged by 21% after announcing the closure of 205 loss-making stores, mostly in Japan.

The rise in Domino’s shares also boosted Collins Foods (ASX:CKF) (which operates KFC and Taco Bell in Australia) by 12.5%.

Nick Scali's (ASX:NCK) shares also jumped 13% after reporting a net profit of $36 million for the half-year, smashing expectations.

And Sigma Healthcare (ASX:SIG) was up 5% after it upgraded its full-year guidance, partly thanks to the Chemist Warehouse supply contract. The merger between Sigma and Chemist Warehouse is expected to complete later this month.

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for February 7 :

Security	Description	Last	%	Volume	MktCap
KAL	Kalgoorliegoldmining	0.076	230%	41,013,754	$6,281,493
PKD	Parkd Ltd	0.074	72%	2,822,003	$4,472,597
PRS	Prospech Limited	0.032	60%	4,998,414	$6,576,518
SVG	Savannah Goldfields	0.026	37%	352,507	$5,340,613
ABE	Ausbondexchange	0.028	33%	20,289	$2,366,030
E79	E79Goldmineslimited	0.024	26%	2,017,711	$1,941,090
CDT	Castle Minerals	0.003	25%	5,965	$3,793,628
MPR	Mpower Group Limited	0.010	25%	20,761	$2,749,626
POS	Poseidon Nick Ltd	0.005	25%	32,156,073	$16,815,567
AON	Apollo Minerals Ltd	0.023	24%	14,557,660	$14,530,687
M2M	Mtmalcolmminesnl	0.016	23%	115,000	$2,944,183
DMP	Domino Pizza Enterpr	35.670	20%	1,173,101	$2,739,754,920
SRL	Sunrise	0.270	20%	16,541	$20,301,187
GES	Genesis Resources	0.006	20%	35,000	$3,914,206
MRD	Mount Ridley Mines	0.003	20%	2,000	$1,946,223
TEM	Tempest Minerals	0.006	20%	5,837,799	$3,172,649
TMK	TMK Energy Limited	0.003	20%	1,219,542	$23,313,913
WNR	Wingara Ag Ltd	0.006	20%	150,000	$877,713
IKE	Ikegps Group Ltd	0.660	18%	108,781	$90,019,853
RNX	Renegade Exploration	0.007	17%	1,235,566	$7,704,021

Kalgoorlie Gold Mining's (ASX:KAL) shares more than tripled after the company made a ripper gold discovery at Lighthorse, located at its Pinjin site in the Eastern Goldfields. KalGold hit some impressive high-grade gold, with one drill hole showing 17m at 4.81g/t of gold, including 8m at 9.21g/t. The mineralisation is open along strike and down dip, meaning it could extend further. This find is smack-bang in the middle of a solid 600m strike, and the company said it’s clear this gold system has got some size to it.

What makes this discovery even more exciting is the location. Lighthorse is just 1km from KalGold’s Kirgella Gift deposit and surrounded by some big players like Hawthorn Resources’ Anglo Saxon Gold Mine and Ramelius Resources’ Rebecca Gold Project. KalGold said it’s keen to push ahead with further drilling, and the area’s definitely turning into a hot spot for gold exploration.

Parkd (ASX:PKD) has locked in a five-year exclusive licensing deal with Fielders (part of BlueScope Steel) for its metal decking support bracket (MDSB) and system (MDSS) for the construction industry. This agreement allows Fielders to manufacture, market, and sell the MDSB in Australia, while also giving them first dibs on international markets like the US, NZ, and others. No immediate revenue is guaranteed, PKD said.

Prospech (ASX:PRS) has reported some top-notch assay results from its Korsnäs Rare Earths Project, and it’s looking like a winner. The new results are extending the resource estimate, showing off some seriously high-grade mineralisation. Assays have hit impressive numbers like 21.5m at 25,827 ppm TREO and 17.5m at 13,737 ppm TREO, plus significant heavy rare earth elements (HREEs), including up to 58 ppm Terbium and 206 ppm Dysprosium.

Meanwhile, Neuren Pharmaceuticals (ASX:NEU) revealed it was in talks with the US FDA to start the next stage of clinical trials for a drug to treat multiple neurodevelopmental disorders.

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for February 7 :

Code	Name	Price	% Change	Volume	Market Cap
EEL	Enrg Elements Ltd	0.001	-50%	1,050,000	$6,507,557
CVR	Cavalierresources	0.072	-28%	861,218	$5,784,222
MMR	Mec Resources	0.003	-25%	1,200,185	$7,399,063
BIT	Biotron Limited	0.010	-23%	10,776,996	$11,730,976
BNL	Blue Star Helium Ltd	0.004	-20%	1,300,006	$13,474,426
TEG	Triangle Energy Ltd	0.004	-20%	145,200	$10,446,170
ASV	Assetvisonco	0.024	-17%	147,753	$21,441,485
ERA	Energy Resources	0.003	-17%	810,489	$1,216,188,722
TKM	Trek Metals Ltd	0.023	-15%	228,004	$14,043,317
ADN	Andromeda Metals Ltd	0.006	-14%	661,001	$24,001,094
BCB	Bowen Coal Limited	0.006	-14%	483,239	$75,429,481
HLX	Helix Resources	0.003	-14%	206,670	$11,774,678
LNR	Lanthanein Resources	0.003	-14%	3,960,352	$8,552,726
AMN	Agrimin Ltd	0.125	-14%	247,315	$49,707,852
HRE	Heavy Rare Earths	0.026	-13%	38,000	$6,241,016
GRE	Greentechmetals	0.061	-13%	83,571	$7,849,973
PER	Percheron	0.007	-13%	26,985,288	$8,699,501
FUL	Fulcrum Lithium	0.140	-13%	12,000	$12,080,000
HTG	Harvest Tech Grp Ltd	0.016	-11%	525,367	$15,948,881
MVL	Marvel Gold Limited	0.008	-11%	121,620	$7,774,116
VKA	Viking Mines Ltd	0.008	-11%	1,085,000	$11,953,326
HPG	Hipages Group	1.245	-11%	28,373	$187,663,526

IN CASE YOU MISSED IT

Lanthanein Resources (ASX:LNR) has completed the first stage of diamond drilling at its Lady Grey project at Mt Holland in WA's Yilgarn, testing the modelled conductor plate under MLEM Survey Line #6. Lady Grey sits adjacent to the historic Bounty gold mine, which produced ~1.3Moz. First assays are expected this quarter.

At Stockhead, we tell it like it is. While Lanthanein Resources is a Stockhead advertiser, it did not sponsor this article.

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

Originally published as Lunch Wrap: Oil stocks drag down ASX, but KalGold triples after ripper gold find