by Peter Milios
Iron ore prices have reached a seven-month high due to increased demand expectations from China after its reopening following a Covid-19 surge.
Singapore iron ore futures are up 1.5 per cent to $128.20, marking the highest price since June. Prices have risen 70 per cent since November, driven by a drop in inventories at Chinese ports (0.6 per cent last week).
Despite the overall rise in iron ore prices, shares in major mining companies are down slightly.
BHP (ASX:BHP) closed 0.57 per cent lower, Rio Tinto (ASX:RIO) finished 1.25 per cent lower and Fortescue Metals (ASX:FMG) closed down by 1.31 per cent.
At the closing bell, the S&P/ASX 200 was 0.16 per cent lower at 7,481.70.
Futures
The Dow Jones futures are pointing to a fall of 91 points.
The S&P 500 futures are pointing to a fall of 13 points.
The Nasdaq futures are pointing to a fall of 46.25 points.
The SPI futures are pointing to a fall of 12 points when the market next opens.
Best and worst performers
The best-performing sector was Information Technology, up 2.32 per cent. The worst-performing sector was Consumer Staples, down 0.74 per cent.
The best-performing large cap was Lynas Rare Earths (ASX:LYC), closing 6.94 per cent higher at $9.71. It was followed by shares in WiseTech Global (ASX:WTC) and SEEK (ASX:SEK).
The worst-performing large cap was ResMed (ASX:RMD), closing 6.81 per cent lower at $31.36. It was followed by shares in Insurance Australia Group (ASX:IAG) and Incitec Pivot (ASX:IPL).
Asian news
Japan’s Nikkei has gained 0 per cent.
Company news
Magmatic Resources (ASX:MAG) announces that their step-out drilling has intersected visible sulphide mineralisation. Commenting on the rapidly expanding footprint at the Corvette Prospect, Magmatic Resources’ Managing Director Dr. Adam McKinnon said: “this represents our biggest step-out on the Corvette trend to date, what we’ve observed in this hole is a clear indication of the potentially massive scale of the Corvette system.” Shares closed 1.31 per cent lower at $22.20.
BluGlass (ASX:BLG) has launched six laser products at a leading industry conference, Photonics West. Commenting on the product launches, BluGlass President Jim Haden said, “The release of these laser diodes reflects the significant performance and reliability improvements we have made over the past year.” Shares closed 36.1 per cent higher at 4.9 cents.
Babylon Pump & Power (ASX:BPP) announced positive EBITDA for the first half of the financial year and a 55 per cent improvement in operating cash flow compared to the same period last year. In response, Managing Director Michael Shelby said, “The timing of certain payments plus a growth in receivables from some major, highly regarded clients means Babylon enters the second half of the financial year with significant momentum and is well-placed to deliver further record performances.” Shares closed 44.4 per cent higher at 0.7 cents.
Immutep (ASX:IMM), a biotechnology company focused on developing LAG-3 related immunotherapy treatments for cancer and autoimmune diseases, reported positive results in its 2nd quarter FY23 activities report. The report includes the granting of a second US FDA Fast Track designation for eftilagimod alpha (efti) in 1st line non-small cell lung cancer, promising Phase II results in 1L NSCLC, positive independent data monitoring committee recommendation, and successful meetings with FDA in metastatic breast cancer. Shares closed 1.75 per cent higher at 29 cents.
Knosys (ASX:KNO) reported strong first half cash receipts with total cash receipts of $6 million in 1H FY23, up 24 per cent from 1H FY22. The company also showed steady Annual Recurring Revenue (ARR) of $9.6 million, disciplined cost control with Q2 FY23 operating expenses down 7 per cent compared to Q1 FY23, and a minimal net cash outflow of $182K for 1H FY23. The company also signed key contract extensions with Singtel and Optus. Shares closed 5 per cent lower at 9.5 cents.
Lepidico (ASX:LPD) announced an update on its mineral resource development work at the Karibib Project in Namibia, which resulted in the upgrade of a further 1.58 million tonnes of lithium oxide into Indicated Resources. The estimation work was completed in accordance with JORC Code (2012) between October and December 2022, and an updated mineral resource estimate report was produced by Cube Consulting. Shares closed flat at 1.5 cents.
Argent Minerals (ASX:ARD) announced their quarterly activities report. The company acquired the Copperhead Project in the Gascoyne Province, Western Australia, which is located close to major REE and Ni-Cu-PGE projects and has extensive structural and geophysical targets with potential for copper, REE, lithium, nickel and PGE mineralization. A 1,800m drill campaign at Argent’s Kempfield polymetallic deposit in New South Wales was also completed with preparations for drilling underway. Shares closed 2.94 per cent lower at 1.7 cents.
Actinogen Medical (ASX:ACW) released its December 2022 Quarterly Activity Report and Appendix 4C, highlighting key advances into Phase 2 programs for Alzheimer’s disease. These include FDA approval for a six-month Phase 2b trial of Xanamem in early Alzheimer’s patients, treating the first patient in the XanaCIDD Phase 2a trial, and completing initial development of a tablet formulation for the XanaMIA Phase 2b trial. Shares closed 1.1 per cent lower at 9.4 cents.
Kingston Resources (ASX:KSN) has reported record quarterly production of gold and silver at its Mineral Hill mine in New South Wales, with ongoing exploration and development of its SOZ underground deposit, as well as completion of ESIA for the Misima gold project in PNG and appointment of a new Company Secretary. The company has also received funding from the NSW government and a $1.5 million milestone payment as part of its Livingstone Gold Project transaction. Shares closed 4.55 per cent higher at 11.5 cents.
The report contains forward-looking statements regarding ImpediMed’s (ASX:IPD) ability to expand sales and market acceptance in the US and Australia, as well as expectations regarding their clinical trials and intellectual property position. The CEO of ImpediMed, Rick Valencia, who has over 30 years of experience in the healthcare and technology industries, is encouraged by the company’s prospects and has been making changes to the executive team and refining the company’s roadmap and goals. The report also mentions that the company has seen solid growth in its Core Business revenue, with $2.2 million in revenue, a 38 per cent YoY increase. Shares closed 13.2 per cent lower at 5.9 cents.
Breaker Resources (ASX:BRB), a mining or oil and gas exploration entity, has released its quarterly cash flow report. The report shows that the company received $126,000 in interest and had net cash used in operating activities of $4,947,000, while the net cash from investing activities was $59,961,000. The total cash and cash equivalents at the end of the period was $77,300,000. Shares closed 2.99 per cent lower at 32.5 cents.
Commodities and the dollar
Gold is trading at US$1,948.30 an ounce.
Light crude is trading $0.26 lower at US$79.42 a barrel.
One Australian dollar is buying 70.88 US cents.
