Closing Bell: Lithium stocks tumble after Pilbara selldown; Island Pharma surges 30pc

Pilbara Minerals fell 5% after reports that Morgan Stanley and Bank of America are looking to sell a block of its shares.

Pilbara Minerals falls 5pc as share block sale is reported. Picture Getty

• ASX edges down in a quiet market

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

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

The ASX has lifted slightly on Thursday, up by 0.1%, as traders remain cautious amid ongoing tensions in the Middle East.

 It was a quiet trading session overall, with no sector moving more than 1%.

Similarly, major indexes in the US were mostly flat overnight, each up less than 0.1%, as Wall Street awaits the September jobs data due out on Friday. 

This report will be important for assessing the health of the US economy and could influence the Federal Reserve's decisions on interest rates. 

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

Traders are also on edge after Iran's recent strike on Israel, with many anticipating a possible retaliatory action from Israel, although the timing remains unclear. 

President Biden addressed this uncertainty, stating, “The answer is no,” when asked if he would support an Israeli retaliatory attack. 

He also mentioned plans to speak with Prime Minister Netanyahu and indicated that the G7 is preparing a statement to help prevent further escalation.

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

In the large caps sector, lithium miner Pilbara Minerals (ASX:PLS) fell 5% after reports that Morgan Stanley and Bank of America are looking to sell a block of its shares. 

This news affected other lithium stocks like Mineral Resources (ASX:MIN) and IGO (ASX:IGO), which dropped over 1% and 2% respectively.

Westpac (ASX:WBC) also saw a 1% decline after announcing the sale of its auto finance loans and lease receivables to Resimac (ASX:RMC) for between $1.4 billion and $1.6 billion, with the deal expected to close in the first half of 2025. 

This sale completes Westpac's exit from the auto finance sector, following a partial sale in 2021, and is not expected to significantly impact its financial results.

Sigma Healthcare (ASX:SIG) continued its rally, up by 8% today.

A couple of days ago, Sigma announced new data-sharing rules aimed at addressing regulatory concerns surrounding its merger with Chemist Warehouse.

Under these new rules, Sigma will allow its franchisees to terminate agreements with Chemist Warehouse and will restrict the use of confidential data from Sigma Wholesale customers and franchisees for the next three years.

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

Swipe or scroll to reveal full table. Click headings to sort:

Code	Name	Price	% Change	Volume	Market Cap
AKN	Auking Mining Ltd	0.006	50%	3,389,246	$1,410,281
ERL	Empire Resources	0.003	50%	1,585,059	$2,967,826
VML	Vital Metals Limited	0.003	50%	6,500,000	$11,790,134
HIQ	Hitiq Limited	0.020	43%	839,747	$4,925,830
VAR	Variscan Mines Ltd	0.010	43%	2,952,664	$3,101,003
XPN	Xpon Technologies	0.010	43%	3,429,051	$2,537,090
PFT	Pure Foods Tas Ltd	0.021	40%	22,420	$1,831,384
FIN	FIN Resources Ltd	0.007	40%	344,795	$3,246,344
OEC	Orbital Corp Limited	0.145	38%	882,823	$15,335,976
ERA	Energy Resources	0.011	38%	12,960,509	$177,186,394
GMN	Gold Mountain Ltd	0.004	33%	2,771,346	$11,722,420
H2G	Greenhy2 Limited	0.004	33%	5,635,363	$1,794,553
MHC	Manhattan Corp Ltd	0.002	33%	9,173,193	$4,638,800
VRC	Volt Resources Ltd	0.004	33%	1,573,020	$12,476,034
YAR	Yari Minerals Ltd	0.004	33%	58,223	$1,447,073
ENX	Enegex Limited	0.020	33%	69,710	$5,533,740
NYR	Nyrada Inc.	0.115	32%	2,884,881	$15,852,157
ILA	Island Pharma	0.105	31%	4,142,050	$10,151,108
INV	Investsmart Group	0.140	27%	10,000	$15,693,753
LU7	Lithium Universe Ltd	0.015	25%	7,755,349	$7,126,963
MBK	Metal Bank Ltd	0.025	25%	540,524	$7,809,186
CTO	Citigold Corp Ltd	0.005	25%	1,125,011	$12,000,000
A8G	Australasian Metals	0.135	23%	69,919	$5,733,254

Island Pharmaceuticals (ASX:ILA) jumped nearly 40% after successfully dosing all subjects in the Phase 2a part of its ISLA-101 clinical trial for dengue fever. This trial, called PROTECT, includes both a preventative (Phase 2a) and a therapeutic (Phase 2b) approach. Starting tomorrow, subjects will be exposed to an attenuated strain of the dengue virus, and results from Phase 2a are expected by the end of 2024. The Phase 2b trial is set to begin in January 2025.

As part of this, ILA is raising $3.5 million in a two-tranche placement to achieve its “near term inflexion points”. The raising was struck at 7 cents per share, a 12% discount, with one attached options for every share issue at the same price. Half of the oppies expire within 12 months of issue; the other half within 24 months. 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).

Chariot Corporation (ASX:CC9) is up on announcing a tactical change to monetising its Black Mountain hard rock lithium project in Wyoming, USA. The junior 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 capitalise on the growing lithium supply deficit in the North American market.

The contemplated modular plant design is expected to reduce upfront costs and offer flexibility to scale up rapidly, and says the new long-term pilot mine strategy could provide short-term cash flow and optimise future development options – including its original large-scale mining plans for the project.

The new plan near-term consists of 4300m 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.

pXRF results from preliminary field mapping at Golden Mile Resources (ASX:G88)’s Ford prospect at the Pearl project have highlighted an 8m-wide fault zone at surface hosting visible copper and polymetallic mineralisation, with:

• Copper values up to 13.4%
• Lead values up to 1.29%; and
• Zinc values up to 7.22%.

The project is certainly shaping up as a polymetallic play, the news coming just days after the company reported exceptional rock chip assays of up to 930g/t silver, 10.05% copper, and 8.09% zinc from first pass sampling at the Odyssey prospect.

Firebird Metals (ASX:FRB) was up on yesterday’s news.  The design for FRB’s proposed battery-grade manganese sulphate plant in Jinshi, China has been approved – a crucial step in the Middle Kingdom’s development process for these types of projects. Plans for the development of the plant will cover a total land area of 12.09 hectares, with a building area of 84,399km2 and a designated greening area of 11,960km2.

FRB says through the approval of preliminary design, ~80% of the requirements needed for the Building and Construction Permit have been completed.

Variscan Mines (ASX:VAR)’s shares are through the roof today as it sets an AGM date and investors mull over a $2m entitlement offer it received underwritten support from major shareholder Zinc GroupCo. Funds will be used to accelerate exploration and drilling programs and development studies at the high grade zinc Novales-Udias project in Cantabria, northern Spain.

ASX SMALL CAP LAGGARDS

Today’s worst performing small cap stocks:

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Code	Name	Price	% Change	Volume	Market Cap
INP	Incentia Pay Ltd	0.003	-40%	60,988	$6,219,650
TMK	TMK Energy Limited	0.002	-33%	13,262,642	$20,764,836
IMI	Infinitymining	0.031	-28%	401,858	$5,836,998
ALR	Altairminerals	0.003	-25%	12,539,702	$17,186,310
ATH	Alterity Therap Ltd	0.003	-25%	10,832,351	$21,281,344
PAB	Patrys Limited	0.003	-25%	2,372,969	$8,229,789
RFT	Rectifier Technolog	0.007	-22%	606,831	$12,437,856
UCM	Uscom Limited	0.011	-21%	25,101	$3,506,678
XGL	Xamble Group Limited	0.022	-21%	505,040	$8,292,399
EVR	Ev Resources Ltd	0.004	-20%	20,420	$6,981,357
OVT	Ovanti Limited	0.004	-20%	9,979,043	$7,781,742
PUR	Pursuit Minerals	0.002	-20%	24,742	$9,088,500
RIL	Redivium Limited	0.004	-20%	240,788	$13,734,274
THR	Thor Energy PLC	0.013	-19%	35,000	$3,700,372
AOA	Ausmon Resorces	0.003	-17%	490,655	$3,176,998
JAV	Javelin Minerals Ltd	0.003	-17%	1,320,000	$12,830,539
PRM	Prominence Energy	0.005	-17%	16,667	$2,335,058
TON	Triton Min Ltd	0.010	-17%	127,109	$18,820,665
WML	Woomera Mining Ltd	0.003	-17%	587,673	$6,165,223
GRE	Greentechmetals	0.105	-16%	145,811	$10,384,997
IRX	Inhalerx Limited	0.028	-15%	45,000	$6,262,310
1AI	Algorae Pharma	0.006	-14%	1,007,385	$11,811,763

IN CASE YOU MISSED IT

1832 Asset Management has taken a position in Felix Gold (ASX:FXG) , after investing a total of almost $2m through a combination of being a cornerstone in the placement and on-market buying to become a substantial holder.

The asset manager is backed by the Bank of Nova Scotia – a C$88 billion financial services giant whose asset management division has particular expertise in gold exploration, development and mining. 1832 is also one of the largest investors in Kinross Gold Corp (NYSE:KGC), with a US$67 million position whose Kinross-owned Fort Knox gold mine is strategically positioned next door to FXG.

FXG is currently exploring its historical Treasure Creek landholding in Alaska’s prolific Fairbanks gold district.

Historical gold production in the region exceeds some 16Moz, with FXG’s leases sandwiched between Kinross’ 11.8Moz Fort Knox mine and Freegold Ventures’ 19.7Moz Golden Summit project (18km away).

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.

And, well, just in case you missed it mentioned further above… 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 capitalise 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.

TRADING HALTS

Immuron (ASX:IMC) – To analyse CampETEC Hyperimmune Bovine Colostrum clinical trial data

Adslot (ASX:ADS) – Cap raise

Battery Age Minerals (ASX:BM8) – Cap raise

AusQuest (ASX:AQD) – Cap raise

Arika Resources (ASX:ARI) - Cap raise

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

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

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: Lithium stocks tumble after Pilbara selldown; Island Pharma surges 30pc