Happy Friday!
What have you planned for the weekend?
Across markets
Australian shares are poised to open little changed, in line with New York where the S&P 500 and Nasdaq Composite turned late to finish modestly positive. The Dow ended 0.1 per cent lower, mostly paring earlier losses.
Oil tumbled anew, with US inventories rising to their highest since August and amid renewed concerns about global demand, prompting traders to expect Saudi Arabia and Russia to prolong output cuts into 2024.
Market highlights
ASX futures down 1 point to 7085 near 8am AEDT
- AUD -0.6% to 64.68 US cents
- Bitcoin -4.5% to $US35,909 at 8.27am AEDT
- On Wall St at 4pm: Dow -0.1% S&P +0.1% Nasdaq +0.1%
- In New York: BHP -0.4% Rio -0.3% Atlassian -0.4%
- Tesla -3.8% Apple +0.9% Amazon -0.3% Cisco -9.8%
- VIX +1% QQQ +0.1% TLT +1.2%
- Stoxx 50 -0.2% FTSE -1% DAX +0.3% CAC -0.5%
- Spot gold +1.2% to $US1983.87/oz at 2.19pm in New York
- Brent crude -4.7% to $US77.33 a barrel
- Iron ore +0.5% to $US130.70 a tonne
- 10-year yield: US 4.44% Australia 4.55% Germany 2.58%
- US prices as of 4.23pm in New York
Source: AFR
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Guy on Rocks’ is a Stockhead series looking at the significant happenings of the resources market each week. Former geologist and experienced stockbroker Guy Le Page, director, and responsible executive at Perth-based financial services provider RM Corporate Finance, shares his high conviction views on the market and his “hot stocks to watch”.
Market Ructions: Lithium Bubble or the new normal?
I thought I would take some time out and talk lithium given the unprecedented activity on ASX over the last few months with four players, namely Abermarle, SQM, Mineral Resources and Gina Rhinehart aggressively bidding up companies while lithium prices remain in retreat (figure 1).
Figure 1: Spodumene concentrate prices (source: https://www.fastmarkets.com/newgen/battery-materials/lithium/lithium-prices/)
Figure 2: Pilbara Mines Ltd 2-year share price chart (source: CMC Markets, 10/11/2023).Pilbara Minerals (ASX:PLS) (figure 2) is also off 38% from its October 2022 highs with Morgan Stanley (30 October 2023) revising their base case valuation back to $2.75/sh and the bear case to US$1.80/sh on the back of declining spodumene prices and upcoming CAPEX commitments.
A recent CNBC bulletin pointed out that while auto manufacturers committed US$400 billion in 2022 with around US$616 billion committed over 2023-2024, EV sales are slowing with EVs taking longer to sell than ICEs. In the US, from January to August this year, EV sales slowed from 80 to 100 days while SUVs only slowed from 52 to 57 days.
Source:Stockhead
Company: Alderan Resources (ASX:AL8)
Sector: Lithium
Deal Type: Placement
Raise Amount: $1.75M
Latest Entry Price: $0.006 with a 1:2 AL8OA
Today’s Price Change: $0.008 +14.29%
Company: Terra Uranium (ASX:T92)
Sector: Uranium
Deal Type: IPO
Raise Amount: $7.5M
Latest Entry Price: $0.20
Today’s Price Change: $0.13 -3.70%
Company: Patagonia Lithium (ASX:PL3)
Sector: Lithium
Deal Type: IPO
Raise Amount: $8.6M
Latest Entry Price: $0.20
Today’s Price Change: $0.14 Unchanged
Company: Gold Mountain Limited (ASX:GMN)
Sector: Lithium
Deal Type: Placement
Raise Amount: $2.25M
Latest Entry Price: $0.0075
Today’s Price Change: $0.005 Unchanged
Company: Unith Ltd. (ASX:UNT)
Sector: AI/ChatGPT
Deal Type: Placement
Raise Amount: $4.5M
Latest Entry Price: $0.033 with a 1:1 UNTO
Today’s Price Change: $0.019 Unchanged
Company: Volt Resources Ltd. (ASX:VRC)
Sector: Battery Metals
Deal Type: Placement
Raise Amount: $5.75M
Latest Entry Price: $0.011
Today’s Price Change: $0.007 Unchanged
Company: Castle Minerals Ltd. (ASX:CDT)
Sector: Battery Metals/Base Metals
Deal Type: Placement
Raise Amount: $1.52M
Latest Entry Price: $0.02 with a 2:3 CDTOA
Today’s Price Change: $0.011 Unchanged
Company: Avenira Ltd. (ASX:AEV)
Sector: Phosphate
Deal Type: Placement
Raise Amount: $2.1M
Latest Entry Price: $0.01 with a 1:2 AEVO
Today’s Price Change: $0.012 Unchanged
Company: Latrobe Magnesium Ltd. (ASX:LMG)
Sector: Magnesium
Deal Type: Placement
Raise Amount: $3M & $11.5M
Latest Entry Price: $0.10 with a 1:4 LMGO
Today’s Price Change: $0.057 +3.64%
Company: Askari Metals Ltd (ASX:AS2)
Sector: Mining
Deal Type: IPO
Raise Amount: $5.7M
Latest Entry Price: $0.35 with a 1:3 AS2O
Today’s Price Change: $0.195 +2.63%
Company: iCandy (ASX:ICI)
Sector: Gaming & Digital Advertising
Deal Type: Placement
Raise Amount: $1.25M
Latest Entry Price: $0.02 with a 1:1 ICIOB
Today’s Price Change: $0.03 +7.14%
Company: Fatfish Group (ASX:FFG)
Sector: Fintech
Deal Type: Placement
Raise Amount: $1.5M
Latest Entry Price: $0.015 with a 1:2 FFGOA
Today’s Price Change: $0.014 +16.67%
Company: Paradigm Biopharma (ASX:PAR)
Sector: Biopharma
Deal Type: IPO Cornerstone
Raise Amount: $1M+
Latest Entry Price: $0.35
Today’s Price Change: $0.39 -1.27%
Company: ReNu Energy Limited (ASX:RNE)
Sector: Energy
Deal Type: Placement
Raise Amount: $1.46M
Latest Entry Price: $0.06 with a 1:1 RNEO
Today’s Price Change: $0.022 Unchanged
Company: Carly Holdings Ltd (ASX:CL8)
Sector: AI and Car subscription
Deal Type: Placement
Raise Amount: $1.25M
Latest Entry Price: $0.025 with a 1:2 CL8O
Today’s Price Change: $0.016 Unchanged
Company: Avecho Biotechnology (ASX:AVE)
Sector: CBD
Deal Type: Placement
Raise Amount: $5M
Latest Entry Price: $0.006 with a 3:2 AVEOA
Today’s Price Change: $0.004 +33.33%
Company: ECS Botanics Holdings Ltd (ASX:ECS)
Sector: Medicinal Cannabis
Deal Type: Placement
Raise Amount: $6.6M
Latest Entry Price: $0.033 with 1:2 ECSO
Today’s Price Change: $0.023 Unchanged
If you would like more information on future Peak deals, please don’t hesitate to get in touch.
Peak on 1300 304 460
