ASX-listed lithium miners pushed higher this afternoon as lithium prices continued to bounce off recent multi-month lows (PLS +8%, MIN +6.5%, and LTR +8.7%).
This came as Reuters reported overnight that Volvo will replace high-voltage battery packs in 40,323 EX30s (its flagship electric vehicle) because of the risk the current batteries could overheat.
Across Markets…
The Australian sharemarket dipped on Tuesday as fresh anxiety over the impact of artificial intelligence sparked another round of selling in technology and insurance stocks, offsetting strong gains in materials.
The S&P/ASX 200 Index fell 3.70 points, or less than 0.1 per cent, to 9022.30, with five of the 11 sectors finishing in the red. The gauge climbed earlier in the session as investors piled into the mining sector.
But heavy selling on the Nasdaq overnight, that sent Sydney-based Atlassian tumbling more than 9 per cent, trickled on to the ASX. WiseTech Global fell 3.7 per cent to $42.99, Xero 4.6 per cent to $71.84 and TechnologyOne 3.8 per cent to $22.59.
Betashares investment strategist Hugh Lam said the moves reflected investor angst around the longer-term viability of many legacy business models in the face of AI.
“It’s our view that markets may have jumped the gun by pricing in a worst-case scenario before any evidence supports the case,” he said. “As a result, the pullback that we’ve seen may present an attractive entry point for investors with a longer-term horizon.”
Financials also weighed as Insurance Australia Group fell 3.3 per cent to $6.73, QBE 1.6 per cent to $21.87 and Steadfast 5.4 per cent to $4.20. Insurance stocks have been under pressure following the launch of an AI tool from Insurify triggering further fears about industry disruption.
Elsewhere in the sector, ANZ lost 0.7 per cent to $39.49 after former chief executive Shayne Elliott dropped his legal action against the bank.
Energy was the strongest sector as crude oil climbed above $US72 per barrel – the highest since August. Woodside Energy rose 2.4 per cent to $27.75 after a 24 per cent drop in full-year profit to $US2.72 billion still beat expectations. Viva Energy gained 8.1 per cent to $1.87 after its underlying net profit beat estimates by 12 per cent.
Miners also climbed. BHP rose 1.4 per cent to $54.75 after earlier hitting a record high of $55.33, while lithium miners rallied as futures for the battery metal in China climbed after the market reopened from the new year holidays. Liontown gained 8.7 per cent to $1.81, PLS by 8 per cent to $4.72 and Mineral Resources 6.5 per cent to $57.29.
Source: AFR
Anax Metals Reinforces Outstanding Economics with Whim Creek DFS
-
Whim Creek DFS confirms robust A$501M NPV and 98% IRR.
-
Modest capex and rapid payback underpin a near-term production path.
-
Funding certainty remains the primary hurdle, with non-binding offers in place.
Anax Metals (ASX: ANX) has confirmed compelling economics for its Whim Creek project in a new Definitive Feasibility Study (DFS).
The updated DFS for the Whim Creek project outlines a base-case scenario that projects a pre-tax NPV7 of A$501 million and an Internal Rate of Return (IRR) of 98%.
At spot prices, the project’s economics improve further, with a pre-tax NPV7 of A$649 million and an IRR of 118%.
The study forecasts A$723 million in free cash flow under the base case over a 10-year mine life.
The project demonstrates a rapid payback period of 14 months under the base case, reducing to 12 months at spot prices.
Anax Metals’ share of the pre-production capital expenditure is a modest A$76 million out of a total A$91 million.
Robust Project Metrics
The current concentrator capacity stands at 400 ktpa, with potential for expansion to 500 ktpa.
The ore reserves total 4.61 Mt at grades of 1.36% copper, 2.31% zinc, 0.67% lead, 30 g/t silver, and 0.27 g/t gold.
The production target is supported by 94% Proven & Probable resources, with 6% Inferred resources contributing to growth potential.
Funding Remains Key Focus
Securing definitive funding remains a critical element for the Whim Creek project.
Anax Metals has received non-binding funding offers of up to A$57 million targeting its 80% interest in the project.
Recent strategic placements and loans have worked to improve liquidity, including a A$2.4 million strategic placement with Gold Valley Pilbara (GVP), which took a strategic 19.9% stake.
A A$3.5 million Jetosea loan also facilitated the repayment of previous convertible notes, concluding arrangements with Mineral Development Partners (MDP).
Anax Metals is actively engaged in discussions with various debt and equity funders to secure the necessary capital for a final investment decision (FID).
Development Path and Existing Infrastructure
The Whim Creek project is well-positioned for development, being fully permitted for mining and processing operations.
The timeline from FID to production is an efficient 18 months, underscoring the project’s readiness.
Leveraging existing infrastructure at the site, the project is designed for a 10-year mine life.
It is expected to deliver average annual copper equivalent (CuEq) production of approximately ~13 kt for the first eight years of operation.
To read more, click here
Source: SmallCaps
Company: Fin Resources Ltd (ASX:FIN)
Sector: Gold/Mining
Deal Type: Placement
Latest Entry Price: $0.0065
Performance Since Entry: +85%
Company: Eden Innovations (ASX:EDE)
Sector: Construction/Clean Energy
Deal Type: Shortfall
Latest Entry Price: $0.035 with 1:2 option, strike $0.07
Price Performance Since Entry: +400%
Company: Tasman Resources Ltd (ASX:TAS)
Sector: Gold/Silver/Mining
Deal Type: Placement
Latest Entry Price: $0.0125 with 1:2 option, strike $0.02
Price Performance Since Entry: +444%
Company: Locksley Resources Ltd (ASX:LKY)
Sector: REE & Antimony/Mining
Deal Type: Placement
Latest Entry Price: $0.04
Price Performance Since Entry: +300%
Company: CuFe Ltd (ASX:CUF)
Sector: Copper/Mining
Deal Type: Placement
Latest Entry Price: $0.016 with 1:2 option, strike $0.025
Price Performance Since Entry: +194%
Company: Tambourah Metals Ltd (ASX:TMB)
Sector: Gold/Mining
Deal Type: Placement
Latest Entry Price: $0.04
Price Performance Since Entry: +55%
Company: Biotron Ltd (ASX:BIT)
Sector: Biotech
Deal Type: Placement
Latest Entry Price: $0.003 with 1:2 option, strike $0.02
Price Performance Since Entry: 0%
Company: Eclipse Metals Ltd (ASX:EPM)
Sector: REE
Deal Type: Placement
Latest Entry Price: $0.015
Price Performance Since Entry: +40%
Company: Neuren Pharmaceuticals Ltd (ASX:NEU)
Sector: Biotech
Deal Type: On-market purchase
Latest Entry Price: $1.20 – $1.50
Price Performance Since Entry: +1,104%
Company: Dimerix Ltd (ASX:DXB)
Sector: Biotech
Deal Type: Rights Issue
Raise Amount: $800,000
Latest Entry Price: $0.08 with 1:1 option, strike $0.126
Price Performance Since Entry: $0.505 +456%
Sector: Blockchain
Deal Type: Placement
Raise Amount: $1M
Latest Entry Price: $0.02 with 1:1 option $0.08 strike
Price Performance Since Entry: +35%
Company: Critica Limited (ASX:CRI)
Sector: REE
Deal Type: Placement
Raise Amount: $1M
Latest Entry Price: $0.0075 with a 1:1 CRIO
Price Performance Since Entry: +260%
Sector: Lithium
Deal Type: IPO
Raise Amount: $8.6M
Latest Entry Price: $0.09 with 1:2 PL3O
Price Performance Since Entry: +39%
Sector: Gold/Mining
Deal Type: Placement
Raise Amount: $2.3M
Latest Entry Price: $0.026 with 1:2 option $0.032 strike
Price Performance Since Entry: +73%
If you would like more information on future Peak deals, please don’t hesitate to get in touch.
Peak accepts no responsibility for any views expressed and marketing material contained in this email except where the message specifically states otherwise and the sender is authorised to state them to be the views of Peak. Information provided in this email is general advise only and does take account your objectives, financial situation or needs. Before acting on any advice in this email, Peak recommends that you consider whether it is appropriate for your circumstances. If this email contains reference to any financial products, you should obtain the current Product Disclosure Statement (PDS) or other disclosure documents for the particular products and consider this information before making any decisions regarding the products. The Financial Services Guide (FSG) can be found at www.peakassetmanagement.com.au or by telephoning Peak on 1300 304 460
Comments are closed