Market Highlights: Wall Street makes it with solid jobs, but who cares when we have all these lovely ASX lithium leads | spcilvly

  • ASX to open lower as markets fall in New York
  • US 10-Year Bond Yields Still Threatening 5%, So Everyone Still Upset
  • Noxopharm obtains good results before the FDA
  • And then. A lot. Lithium. News.

Australian shares are heading for another pullback in early October after US shares plunged overnight after a lot more new US jobs appeared in August (which is bad) and really iced the pie. rises for longer than they had been baking in the US Federal Reserve.

At 9:45 a.m. in Sydney, the SPI 200 Futures index was at 6,929 points, down -35.00 or -0.50%.

Vacancies in the United States increased from 8.92 million in July to 9.61 million in August (expected: 8.82 million), according to the JOLTS (Job Openings and Labor Turnover) survey. Another rate hike by the Federal Reserve now seems a certainty on Wall Street, as does the reality that rates will remain high for some time.

After the excellent ISM print earlier this week and last night’s JOLTS reading, attention now turns with growing concern to Friday night’s Nonfarm Payrolls report.

If payrolls offer the good (which is bad) news of a still-hot U.S. labor market, then who knows how depressed bettors might become and what that might do to the risk sentiment driving Wall Street’s earnings package.

Naturally, ultra-sensitive US bond yields reacted with equal, opposite and bullish force: the 10-year Treasury yield hit 4.8%, still the highest level in 16 years, the 30-year Treasury yield hit 4.925%, also the highest since 2007. .

This, in turn, exerted an equal, opposite and bearish force on the US stock markets during the overnight session.

During the overnight session, the Dow Jones index returned to negative territory for 2023, giving up 430 points or -1.3%.

The S&P 500 index hit its lowest level since June, down -1.4%, and the selling was even stronger in the tech-heavy Nasdaq Composite, which lost almost 250 points or -1.95%.

In U.S. corporate news, with the average rate on a 30-year fixed mortgage approaching 8%, the SPDR S&P Homebuilders ETF (XHB) fell about 2%, with Home Depot and Lowe’s leading the decline. Financial names such as Goldman Sachs and American Express led losses in the Blue Chip Industrial Average.

On the Nasdaq, this week’s mega tech winners Nvidia (NVDA) and Microsoft (MSFT) fell the most as support for growth stocks disintegrated on the themes mentioned above. Amazon (AMZN) shares fell more than 3.5%.

Through the markets

Via IG Markets

gold price fell -0.22% to $1,823.45 per ounce.

Oil prices fell +0.78%, and Brent crude is now trading at $89.51 a barrel.

iron ore fell 1.5% to $116.50 a ton.

Base metal prices mixed with nickel futures going up, and copper futures falling.

He Australian dollar fell again almost 1% to 63.03 cents on the dollar.

bitcoin Meanwhile, it rose more than -0.60% in the last 24 hours to trade at $27,335.

ASX small caps to watch today

Noxopharm (ASX:NOX)

Australian biotech Noxopharm, caught by police for ASX speeding following Tuesday’s buying spree, has shared the news that the US Food and Drug Administration has granted Orphan Drug Designation (ODD) to Noxopharm’s preclinical drug candidate CRO-67, for the treatment of the pancreas. cancer.

The FDA grants ODD to drugs designed to prevent, diagnose, or treat rare diseases or conditions, and the designation carries several benefits including:

• Tax credits for qualified clinical trials
• Waiver of user fees (e.g. FDA application fees)
• Potential seven years of market exclusivity after approval.

So far this year, only two other Australian companies have received an ODD from the FDA, out of a total of 260 issued.

“The designation of CRO-67 as an orphan drug supports the company’s development plan for the asset and its future commercial value, as Noxopharm continues to build the data package that will be necessary for regulatory progress,” NOX said in a statement to the bag.

Dr. Gisela Mautner, CEO of Noxopharm:

“CRO-67 reaching an ODD is an important milestone in the drug’s development. In addition to the financial benefits, the ODD will also strengthen our commercial position in a market that has seen very few new treatments in recent decades.

“Our pancreatic cancer program is a high priority and we are committed to advancing its development as quickly as possible. “More studies are being done, as is research into dosing and formulation.”

Neometals (ASX:NMT)

Australian battery materials recycler Neometals is pleased with test results for a new lithium recovery option it plans to offer under supply and technology licensing agreements.

“Lithium recoveries greater than 93% were achieved by precipitating lithium fluoride (“LiF”) along with a purity of 95%. “This process improvement option can replace Primobius’ current lithium solvent extraction circuit, which produces lithium sulfate (“LiSO4”) and is expected to reduce operating and capital costs,” the company told the ASX.

LiF is used to produce lithium hexafluorophosphate (“LiPF6”), an inorganic compound that is a key ingredient “in next-generation electrolytes used in the manufacture of lithium-ion batteries (LiB).”

Historically, LiF trades at a 60% premium over lithium carbonate (Li2CO3), and NMT says further improvements in product purity are expected to be achieved in the coming months.

Chris Reed, CEO of Neometals:

“First of all, I would like to congratulate the technical teams at Primobius, SMS and Neometals for another outstanding innovation. Our original plant design now includes EV module discharging and dismantling, and has the flexibility to produce intermediate, cathodic or electrolytic lithium products. In addition to meeting regulatory and customer requirements, greater efficiency translates into stronger economics for our recycling plant owners.”

Lithium plus minerals (ASX:LPM)

Sticking with Li2O, Lithium Plus has the latest ‘exceptional’ assay results (from diamond hole BYLDD019) at Lei Prospect, Bynoe Lithium Project, and says there are ‘thick, high-grade mineralized intervals’, with highlights such as:

− 13 m to 1.36 % Li2O from 611 m (~8 m actual width); and
− 81 m at 1.59 % Li2O from 653 m (~48 m actual width), including:
− 41 m at 1.94 % Li2O from 683 m (~25 m actual width).

Chief executive Dr Bin Guo says these figures make BYLDD019 home to “some of the widest and highest grade mineralized intervals ever recorded in the Bynoe pegmatite field”:

“Today’s announcement confirms the exceptional quality and thickness of lithium intercepted in well BYLDD019. The extremely high grade of 1.94% Li20 reported over a wide 41m interval opens the door to consideration of potential DSO development pathways as we continue to explore and advance the project. Meanwhile, drilling continues, with four diamond wells and seven infill wells underway at Lei. “We remain focused on delivery and remain on track to declare a maiden lithium resource during the fourth quarter of 2023.”

Four more diamond drill holes are being carried out at Lei and test results are expected later this month.

Great Mining Division (ASX:GDM)

Up more than 40% since listing a few weeks ago, upstart Queensland gold, antimony and critical metals explorer reports its Maiden Inferred Mineral Resource Estimate (MRE) at the Yellow Jack Project, recording 1.84Mt at 0 .86g/t gold (Au) for 51,100oz contained gold and is reported above a cut-off grade of 0.5g/t Au.

Some bullies:

• Oxide gold resource, open at depth and along strike with initial drilling limited to only 70 m vertical depth
• Further diamond and RC drilling is planned in the coming months and is expected to expand the mineral resource.
• Metallurgical testing is planned on the drill core to determine if ore grading and other possible metallurgical processes can improve the grade of the gold head.
• A conceptual mining plan, LiDAR study and other work are planned for the coming months as GDM moves towards a pre-feasibility study for mining at Yellow Jack.

Justin Haines is the CEO:

“We are excited to announce GDM’s first mineral resource estimate at Yellow Jack of 1.84Mt @ 0.86g/t Au for 51,100oz of contained gold, just weeks away from listing on the ASX.

“This MRE is the first step towards eventual gold production at Yellow Jack, which could leverage existing nearby infrastructure, including multiple processing plants, facilitating a low capital expenditure mining operation at Yellow Jack. “We are in the process of completing a conceptual mining plan for Yellow Jack in the coming weeks.”

Redstone Resources (ASX:RDS)

Redstone has revealed that it is partnering with Galan Lithium (ASX:GLN) “to further solidify its exposure to the highly sought-after Tier 1 mining jurisdiction, which is the James Bay Lithium district in Quebec, Canada.”

Yes, RDS is like Flynn in James Bay and (wait, there’s more) has secured an option in northwestern Ontario, another important Canuck lithium area.

Take it, Redstone President, Mr. Richard Homsany:

“Redstone recently began operating in Canada and will be the manager of the joint venture.

“Galán is a highly experienced lithium exploration company that will bring considerable technical depth and experience as we look to accelerate our exploration efforts in the region. Galán is exploring the Greenbushes South Lithium Project, which hosts the Greenbushes lithium-bearing pegmatite site, and is located approximately 3 km south of the Greenbushes mine.

“These new Canadian assets are a welcome addition to our existing copper and lithium portfolio and further strengthen our strategy of becoming a leading explorer and developer of critical metals. Our technical team is also very encouraged by the quality of the areas targeted by the joint venture and nearby high-caliber discoveries, with the James Bay lithium projects adjacent to Patriot Battery Metals’ high-grade CV8 pegmatite discovery and the PAK lithium projects located in Ontario. Electric Avenue.

“Redstone has very quickly secured a very valuable position in two of the world’s leading lithium exploration hotspots and we are now focused on accelerating our exploration strategy and unlocking value for shareholders.”

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