Source : THE AGE NEWS
Gee, financial markets are really putting the old bend-don’t-break adage to the test.
Wall Street and the ASX spent most of the week heading in one direction – down – with Aussie miners getting pummelled on Friday as the index gave up 3.5 per cent on the week.
Boring old bonds are back on the chopping block this week and no matter how much the US Treasury intervenes, the debt market appears determined to have the final say. Yields continued marching higher – almost vertically so – as investors demanded more compensation for lending money to governments already drowning in sovereign paper.
Treasury Secretary Scott Bessent’s highly publicised bond buyback program, designed to restore confidence in Washington’s debt markets, appears to have achieved the opposite. What began as a relatively modest intervention has reportedly expanded to around three times its original size, drawing even more attention to the very problem it was meant to solve.
As America’s debt pile expands rapidly, that dreaded word – inflation – has started creeping back into the conversation. It didn’t help that oil decided to join the inflation party either.
Brent crude surged to a staggering US$109 a barrel on Thursday night after Houthi fighters reportedly seized a strategic Red Sea port near Bab al-Mandeb Strait – the other Strait – while hopes of a US-Iran breakthrough faded once again.
Traders suddenly found themselves contemplating disruptions to two of the world’s most important energy choke points at the same time, leaving Australian families on the other side of the world bracing for even more cost of living pressure.
Nothing could encapsulate the modern household squeeze quite like Apple’s latest iPhone launch this week. Why humanity requires a new handset every 12 months, with a new camera lens for an extra $100 will always remain a mystery. Yet this year’s latest flip phone models are set to break the bank, fetching anywhere between $3500 to $5900 a phone come launch. The old Motorola Razr flip phone is starting to look a lot less like nostalgia and more like sound financial planning.
Gold gave back about US$75 an ounce on inflation fears and higher interest rates. Copper and lithium, however, continued their remarkable run, with the red metal briefly touching a record US$6.80 per pound before cooling off – like everything – on Friday, with a casual five per cent dump.
Understandably, AI and tech took a back seat for our Runners list this week, as too much debt and too much inflation let resources take the wheel, with an “urban mining” revolutionary play taking the top spot by turning complex waste streams into critical minerals.
IONDRIVE LIMITED (ASX: ION)
Up 88% (8.5c – 16c)
Bulls N’ Bears Runner of the Week is critical minerals recycler Iondrive, after the market finally got a glimpse at what its flagship IONSolv processing might actually be worth.
The company unveiled an updated economic assessment for its proprietary technology – developed alongside the University of Adelaide – that extracts rare earths and battery metals from everything from discarded magnets and e-waste to old solar panels.
The economics were enough to stop punters in their tracks, with a single rare earths processing module in the United States forecast to generate a post-tax net present value (NPV) of US$243 million (A$338M) and annual EBITDA of US$62.1 million (A$86M) on revenue of US$121.8 million (A$169M). Even more impressively, the company estimates it would cost just US$11.9 million (A$16.75M) to build.
For a company with a market cap that remains a fraction of those numbers, the market clearly liked what it saw.
Timing is also on Iondrive’s side, as Western governments scramble to secure supplies of rare earths and critical minerals and China tightens its grip on the supply chains.
In the past two months alone, both US President Donald Trump and the G7 nations have publicly identified rare earths recycling as a strategic priority.
Rather than spending hundreds of millions digging holes in remote deserts, Iondrive is taking a different approach. Its “urban mining” model targets valuable materials already sitting in landfills, scrapyards and industrial waste streams.
The company says its closed-loop process can selectively recover high-value rare earths such as neodymium, praseodymium and dysprosium, alongside lithium, nickel, cobalt, manganese, copper, silver and even gold – whatever makes the market sing.
AUSTRALASIAN METALS LIMITED (ASX: A8G)
Up 80% (10c – 18c)
Taking out silver this week is lithium pioneer Australasian Metals, after the company decidedly changed tracks from Australasia to grab a foothold in one of the world’s most exciting emerging lithium districts – West Africa.
The company has inked an option agreement to acquire up to 75 per cent of the Atex lithium-tantalum project and 51 per cent of the neighbouring Alliance project in Côte d’Ivoire, giving it exposure to a region increasingly attracting the attention of lithium majors.
West Africa may be better known for its gold, but it is rapidly emerging as one of the next major frontiers for hard-rock lithium. Successes by companies such as Atlantic Lithium and Kodal Minerals have shone a spotlight on the broader Baoulé-Mossi terrain, which remains remarkably underexplored given its geological credentials.
The existing drill results certainly aren’t lacking for excitement either, with previous drilling at Atex returning hits up to a whopping 67.97m grading 1.23 per cent lithium oxide from just 68.4m and 20.77m at an impressive 1.65 per cent lithium oxide from 79.48m.
Australasian says lithium mineralisation has already been confirmed across more than 800 metres of strike and remains open in multiple directions for expansion.
The market has spent the better part of two years treating lithium stocks like a contagious disease, but the sector is beginning to stir again. History shows the best lithium discoveries are often made when nobody is paying attention and Australasian appears to have timed its move accordingly.
The company also completed a $1 million placement at 13c to fund due diligence and exploration activities. If the projects stack up as hoped, Australasian Metals could find itself sitting on a very strategic slice of West Africa’s next up-and-coming province.
ARUMA RESOURCES LIMITED (ASX: AAJ)
Up 80% (0.5c – 0.9c)
Rounding out the podium this week is Aruma Resources after unveiling a new 3D geological model at its red-hot Fiery Creek project in Queensland’s increasingly fashionable Mt Isa copper belt.
The company engaged independent specialists to review the project and the findings delivered exactly what the doctor ordered. Three high-priority target zones where favourable host rocks, structural complexity and known copper occurrences all overlap, pointing to the potential for volcanogenic massive sulphide (VMS) copper targets.
The study confirmed Fiery Creek hosts many of the same geological ingredients associated with major structurally hosted copper deposits throughout the Mt Isa Inlier. Key findings included the identification of the Mt Oxide chert marker horizon, favourable copper host rocks, multiple zones of folding and faulting, and extensive fault corridors capable of transporting mineralising fluids.
In simple terms, the plumbing appears to be there.
The Mt Isa and Cloncurry region has become one of Australia’s hottest takeover battlegrounds as copper prices continue to push record highs. Evolution Mining recently launched its $213 million takeover of Carnaby Resources, targeting its Greater Duchess project for processing through its nearby Ernest Henry operation.
Meanwhile, Hammer Metals eventually succumbed to a takeover by Austral Resources for roughly $80 million, after attracting corporate interest across the district, highlighting the appetite for quality copper ground.
Aruma is still early stage, but with copper once again becoming one of the most strategically important commodities on the planet, the market appears increasingly willing to reward any company that can demonstrate it has the right rocks in the right postcode.
NEURIZON THERAPEUTICS LIMITED (ASX: NUZ)
Up 54% (5.6c – 8.6c)
Completing our Runners list this week is clinical-stage biotech company, Neurizon Therapeutics, after landing what many small biotech companies spend years trying to secure — a major endorsement from the United States government.
The company was awarded a multi-million-dollar, multi-year grant from the US National Institutes of Health (NIH) to support an Expanded Access Program for its lead ALS drug candidate, NUZ-001.
ALS, more commonly known as motor neurone disease, remains one of medicine’s cruellest conditions, progressively destroying nerve cells responsible for movement and muscle control. Treatment options remain limited, making any promising therapy a focus of intense interest.
The NIH-funded program will provide up to 200 ALS patients with access to NUZ-001 for up to 96 weeks, operating alongside the company’s participation in the prestigious HEALEY ALS Platform trial, one of the world’s largest and most respected ALS clinical studies.
Importantly, the grant covers far more than simply supplying the drug, with funding extending across manufacturing, distribution, regulatory activities and clinical support, substantially reducing future cash demands on the company.
Neurizon’s lead asset is backed by an exclusive global licence from pharmaceutical heavyweight Elanco and already carries Orphan Drug Designation from both the US FDA and European Medicines Agency.
Now receiving support from one of the world’s premier medical research agencies to help bankroll patient access to the drug appears to be a powerful vote of confidence in both the program and the underlying science.
Topline data from the HEALEY trial is expected in the second quarter of next year. Until then, the market seems more than happy that one of the world’s leading health authorities has decided NUZ-001 is worth backing.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
