by Peter Milios
CPI data from the September quarter has sharply exceeded estimates. As such, multiple banks have made predictions for the next rate rise.
Commonwealth Bank (ASX:CBA) has tipped a 25 basis point rise in December, ANZ (ASX:ANZ) added a 25 basis point increase in December, Barclays expects two more 25 basis rate hikes this year and AMP (ASX:AMP) is expecting a 25 basis point rise.
In other news, ANZ bank has been fined $25 million and ordered to pay $211 million in remuneration by the Federal Court of Australia for failing to provide a number of benefits it had agreed to give certain customers.
Despite this, at the closing bell, the S&P/ASX 200 was 0.18 per cent or 12.30 points higher at 6810.90.
Futures
The Dow Jones futures are pointing to a fall of 56 points.
The S&P 500 futures are pointing to a fall of 32 points.
The Nasdaq futures are pointing to a fall of 215.25 points.
The SPI futures are pointing to a rise of 17 points when the market next opens.
Best and worst performers
The best-performing sector was Real Estate Investment Trusts, up 2.50 per cent. The worst-performing sector was Consumer Staples, down 2.39 per cent.
The best-performing stock in the S&P/ASX 200 was Costa Group Holdings (ASX:CGC), closing 10.76 per cent higher at $2.47. It was followed by shares in GUD Holdings (ASX:GUD) and Ramelius Resources (ASX:RMS).
The worst-performing stock in the S&P/ASX 200 was Medibank Private (ASX:MPL), closing 18.12 per cent lower at $2.87. It was followed by shares in Whitehaven Coal (ASX:WHC) and Pilbara Minerals (ASX:PLS).
Asian news
Asian markets are looking to end the day advancing.
All major benchmarks trading higher, with Greater China markets outperforming.
There is downward pressure on JGB rates after BOJ boosted purchases of super long bonds.
So far, Japan’s Nikkei has gained 1.04 per cent, Hong Kong’s Hang Seng has gained 2.14 per cent and China’s Shanghai Composite has gained 1.38 per cent.
Company news
European Lithium (ASX:EUR) has entered into a business combination agreement with Sizzle Acquisition Corp, a US special purpose acquisition company. The company will combine their European lithium assets with the US$159m NASDAQ cash box. In consideration for the transaction, EUR will be issued US$750 million worth of ordinary shares in Critical Metals (approximately 73.52 million shares). Upon the closing of the transaction, EUR will be issued US$750 million worth of ordinary shares in Critical Metals, which represents an approximate 80 per cent ownership interest in the combined entity. The valuation of US$750m mentioned in the ASX announcement assumes that EUR shareholders can sell their stock at the SPAC closing price of US$10.20, when in fact EUR shareholders will receive shares issued in the new company, Critical Minerals, and ignores an 80 per cent dilution to the SPAC shareholders who can redeem prior to the agreement. Shares closed 7.78 per cent higher at 10 cents.
Matador Mining (ASX:MZZ; FSE:MA3) announced this morning a private, non-brokered $3.6 million strategic investment by B2Gold Corp, which represents approximately 9.9 per cent of Matador’s outstanding shares (on an undiluted basis). The proceeds from this strategic investment will be allocated to advancing the company’s exploration program in Newfoundland, Canada. Matador’s Managing Director and CEO Sam Pazuki commented: “We are very pleased to welcome B2Gold’s strategic investment in Matador and look forward to their partnership in advancing our exploration program in Newfoundland. B2Gold’s investment demonstrates their confidence in the gold potential of our extensive tenement package, our greenfields exploration strategy with our systematic approach to discovery and the team we have in place to create long-term shareholder value.” Shares closed 15.79 per cent higher at 11 cents.
Following the announcement last week that it had been successful in its application for a US Government grant of US$150 million, Novonix (ASX:NVX) has appointed two new directors to its board, Mr Dan Akerson and Mr Ron Edmonds. Mr Akerson previously served as an executive and director for multiple Fortune 100 companies, including as the former Chairman and Chief Executive Officer of General Motors from 2010 to 2014. Mr Edmonds is a highly accomplished finance executive, currently serving as Chief Accounting Officer at Dow, a $55 billion global materials science company. NVX Chairman Admiral Robert Natter commented: “These new directors will join an already stellar and more diverse Board than what we were only a year ago.” Shares closed 1.69 per cent lower to $2.90.
Arizona Lithium (ASX:AZL) announced today the signing of a Letter of Intent for a strategic partnership with Cemvita Factory to utilise Cemvita’s portable organic lixiviant production plant at the company’s newly established Lithium Research Centre. AZL Managing Director Paul Lloyd commented: “We are very pleased to have signed this partnership with Cemvita. We are focused on our responsibility to our shareholders and to the environment and believe that both of these stakeholders will greatly benefit from the successful implementation of Cemvita’s technology. We aim to be a model for sustainable development and be the pioneer for Lithium producers to use technology like Cemvita’s. We are excited to see the initial results of the partnership in the next 3-6 months, at which time we will assess further partnership potential.” Shares closed 1.19 per cent higher to 9 cents.
Radiopharm Theranostics (ASX:RAD), a developer of a world-class platform of radiopharmaceutical products for both diagnostic and therapeutic uses, and NorthStar Medical Radioisotopes, LLC, a global innovator in the development, production and commercialisation of radiopharmaceuticals used for therapeutic applications and medical imaging, today announced they have entered into a clinical supply agreement that will see NorthStar supply Radiopharm with Actinium-225. Actinium-225 is key to the development of several radiopharmaceutical products within Radiopharm’s broad portfolio of technologies, with this being the second supply agreement the company has secured for Actinium-225. Actinium-225 will be utilised in drug trials involving targeted alpha therapy in multiple disease areas. Riccardo Canevari, CEO and Managing Director of Radiopharm Theranostics, stated: “It remains a priority for us to secure these key supply agreements, which allow us to continue with our clinical development unimpeded. We are fortunate to lock in another outstanding partner such as NorthStar, who has proven itself as a reliable, high-quality supplier of medical radioisotopes.” Shares closed 8.33 per cent lower at 11 cents.
Arovella Therapeutics (ASX:ALA), following a strategic review of its development pipeline, will close its Perth-based research and development facility. The company will focus its resources on its invariant natural killer T (iNKT) cell platform and cease expenditure on the OroMist platform. The iNKT cell therapy platform has significant potential to generate allogeneic cell therapies that target both blood cancers and solid tumours. Arovella’s CEO and MD, Dr Michael Baker, commented: “It will enable all staff and resources to be focused on bringing a potential off-the-shelf cell therapy to market that can target both blood cancers and solid tumours.” Shares are trading 10 per cent higher at 3 cents.
Valor Resources (ASX:VAL) has taken further important steps towards unlocking the exploration potential of its 100 per cent-owned Picha Copper Project in Peru after receiving highly encouraging results from an Induced Polarisation survey and ground magnetic survey completed in September 2022. The Picha Project is located in the Moquegua and Puno Departments of southern Peru within a highly prospective porphyry-epithermal copper-gold-silver district that also includes the Berenguela, San Gabriel and San Antonio De Esquilache polymetallic deposits. Valor Executive Chairman George Bauk stated: “The extensive amount of high-quality work completed by our team in Peru over the past eighteen months has now brought this project to the drill-ready status. The results of the September IP survey represent the cherry on the top of what is potentially a fantastic large-scale system.” Shares closed 3.33 per cent higher at 3 cents
Metalicity (ASX:MCT) has completed its maiden exploration program at its newly acquired 100 per cent owned Mt Surprise Lithium Project (EPM 28052) located circa 57km northeast of the town of Mt Surprise, 165 km west of the major centre of Cairns. The company’s exploration team completed extensive fieldwork activities last week and returned with a promising amount of information regarding the prospectivity of the project and potential target areas. Commenting on the expanded drilling program, Metalicity Managing Director Justin Barton said: “We are excited to get on with exploring this highly prospective tenure. We are really encouraged by the initial sample of rock chips that we have collected to date, particularly the extensive copper sulphides of azurite and malachite identified, and eagerly await these results.” Shares closed 33.3 per cent higher at 0.4 of a cent.
Northern Minerals (ASX:NTU) has signed a rare earths concentrate supply agreement with Iluka Resources (ASX:ILU) covering the initial 8+ year mine life (30.5k tonnes of contained TREO) from Browns Range. The agreements provide for ILU to make a series of investments in NTU, and for NTU to provide ILU with an initial 30.5kt supply of total rare earth oxide (TREO) in concentrate from its Browns Range Project. Northern Minerals has entered into a funding package to raise up to $78.0 million to fund the Browns Range Project (subject to satisfaction or waiver of certain conditions, and receipt of shareholder approvals). Shares closed 4.88 per cent higher at 4 cents.
MinRex Resources (ASX:MRR) provided an update this morning on its activities during the September 2022 quarter. During the period, MinRex focused on Native Title Heritage surveys over the Marble Bar and Tambourah North Lithium Projects. Geological mapping and rock chip sampling programmes were also completed over the Tambourah North area, along with the commencement of the maiden drilling programme over Sisters Project. Shares closed 2.33 per cent lower at 4 cents.
Immutep (ASX:IMM; NASDAQ:IMMP), a clinical-stage biotechnology company developing novel LAG-3 immunotherapies for cancer and autoimmune disease, today announced that the Independent Data Monitoring Committee (IDMC) for the randomised, controlled Phase IIb TACTI-003 trial has reviewed initial safety data and recommended continuing the trial with no modifications. Immutep’s CSO and CMO Dr Frédéric Triebel said: “We are very pleased with the IDMC’s recommendation. While early, this represents positive affirmation of the decision to move TACTI-003 into the 1st line setting for head and neck squamous cell carcinoma patients following the robust results and durable responses that efti in combination with pembrolizumab achieved in the 2nd line setting. Notably, the encouraging antitumour activity previously attained spanned the entire spectrum of PD-L1 expression, which is important as the majority of patients have lower PD-L1 levels and are in need of new approaches to fight cancer.” Shares closed flat at 28 cents.
TNG (ASX:TNG) provided an update this morning on its activities during the September 2022 quarter. The summary includes: updated equipment pricing and capital expenditure estimates being prepared by Clough Projects Australia for the Company’s Mount Peake Project were adversely impacted by unprecedented market conditions, with Clough’s work ongoing, incomplete and in progress. Conditional Letters of Support/Interest for up to A$800 million in debt funding received for the Mount Peake Project from Australian, German and Korean Government backed funding sources. Technical reports for the Environmental Impact Assessment are well advanced, with the referral document expected to be submitted to the Northern Territory Environmental Protection Agency (NTEPA) late 2022/early 2023. Planning completed for a brownfields drilling program at the Mount Peake Project expected to be undertaken during the December Quarter, supported by $143,000 in co-funding under the Geophysics & Drilling Collaborations program administered by the Northern Territory Geological Survey. Metso Outotec engaged to assess the use of hydrogen reduction within the TIVAN Process and the integration of Metso Outotec’s Circored technology into the TIVAN flowsheet. The use of hydrogen is a key part of the company’s medium to longer term strategy to reduce its net carbon footprint from processing operations at the Mount Peake Project. The company’s cash position at 30 September 2022 was $9.2 million. Shares closed 6.98 per cent lower at 8 cents.
Altech Chemicals (ASX:ATC & FRA:A3Y) has appointed leading German company Leadec Automation & Engineering GmbH (Leadec) as the lead engineer for the Definitive Feasibility Study in relation to Altech’s CERENERGY 100MWh Sodium Alumina Solid State Battery project for grid energy storage, which will be constructed in Saxony, Germany. Altech Managing Director Iggy Tan stated: “We are pleased to appoint Leadec as lead engineer for Altech’s CERENERGY 100MWh project. Leadec has extensive battery manufacturing experience and will play a key part in advancing the Definitive Feasibility Study to commercialise the CERENERGY Sodium Alumina Solid State Batteries.” Shares closed 5.62 per cent higher at 9 cents.
Qualitas Real Estate Income Fund (ASX:QRI) provided today their September 2022 quarterly update. The announcement stated QRI is well positioned to capture upside from a rising interest rate environment, with a high proportion of variable interest rate loans and a relatively short average loan term. These key factors, combined with the recent widening of credit spreads, is anticipated to benefit the returns generated for QRI investors. QRI maintains a strong track record of delivering attractive monthly returns and no loan impairments to date. The Manager continues to see a dynamic CRE debt market delivering a strong pipeline of opportunities for QRI. The Manager also remains vigilant with respect to asset management and to their approach to managing risk across the portfolio. Shares closed 1.02 per cent lower at $1.45.
Antisense Therapeutics (ASX:ANP) has provided its quarterly update for the period ended 30 September 2022. Overall, ANP outlined three major changes: during the quarter, the company announced it intended to conduct a double-blind, placebo controlled six-month dosing trial of ATL1102 followed by a six-month open label phase in non-ambulant boys with Duchenne’s Muscular Dystrophy; dosing has commenced in a muscular dystrophy mouse model of DMD to assess the potential clinical utility of ATL1102 in combination with dystrophin restoration drugs to improve therapeutic outcomes for patients with DMD; the collaboration to study the neurological aspects of Long COVID-19 (Long Neuro COVID-19) with US-based researchers led by global leader in the field Dr Igor Koralnik at the Northwestern Medicine Neuro-COVID clinic in Chicago has elucidated novel blood markers as potential diagnostic and therapeutic targets in the treatment of Long COVID-19 patients. Shares closed 1.16 per cent higher at 9 cents.
Commodities and the dollar
Gold is trading at US$1655.67 an ounce.
Iron ore is 3.8 per cent lower at US$89.50 a tonne.
Iron ore futures are pointing to a rise of 1.19 per cent.
Light crude is trading $0.59 lower at US$84.73 a barrel.
One Australian dollar is buying 64.00 US cents.
