Lunch Wrap: ASX refuses to blink as inflation heats up

• Hot inflation puts another RBA hike on the cards
• Tech and miners keep ASX in the green
• PLS cuts costs as Woolies beats forecasts

The ASX is having a decent Wednesday, with the S&P/ASX 200 up 0.3% around lunchtime in Sydney.

The rally was looking pretty healthy too, until the latest CPI figures arrived and reminded everyone that the RBA wasn’t quite done making life expensive.

September-quarter headline inflation came in at 1.3%, above the 1.2% economists had pencilled in.

The RBA’s preferred underlying measure wasn’t exactly cooperating either, rising 1% for the quarter and 3.7% over the year.

And the monthly figures were even less encouraging, with annual headline inflation accelerating to 4.3%.

Bond traders wasted no time adjusting their bets, pushing the odds of another rate hike next Tuesday from around 70% to 90%.

That would take the cash rate to 4.85%, a level Australia hasn’t seen since 2008, back when the iPhone was still a novelty.

But despite the inflation scare, the ASX was still in the green, with tech and mining stocks doing most of the rescuing.

Tech was riding Wall Street’s latest AI rally, while miners were staging a rather convincing comeback.

Coal miners, refiners and oil and gas producers, though, were all under pressure as crude prices eased.

ASX large caps making headlines

NextDC (ASX:NXT) was reassuring investors it wasn’t about to run out of money after delays at its Melbourne data centre.

With $8.67 billion in liquidity and gearing of just 8.2%, the balance sheet looks comfortable.

Now it just needs the electricity. Minor detail for a data centre.

Over in lithium, PLS Group (ASX:PLS) produced a record 267,600 tonnes, up 25%, only to watch revenue slump 24% to $563 million as sales and prices fell.

Talk about running faster to get nowhere.

At least its new 20-year renewable power deal with Fortescue (ASX:FMG) announced today should save around $20 a tonne from 2029.

PLS says it will fork out $150m to connect its Pilgangoora mine to Fortescue’s solar and wind network, potentially paving the way for electric mining trucks down the track.

West African Resources (ASX:WAF) was practically swimming in cash, producing a record 127,950 ounces of gold and generating $458m in quarterly operating cash flow.

That’s roughly 12% of its market value in just three months.

It’s paid a special 20-cent dividend too. Not a bad problem to have.

Monadelphous Group (ASX:MND), meanwhile, picked up $150m in contracts from Rio Tinto, BHP and Whitehaven.

While miners worry about commodity prices, Monadelphous gets paid to keep their gear working.

Over at Woolworths (ASX:WOW), the cost-of-living crisis apparently hasn’t stopped the checkout machines ringing.

Q1 sales rose 4.7% to $19.4bn, beating forecasts.

Woolies is promising more than 500 budget-friendly Christmas products too. How generous. Now about the other 364 days….

And finally…

Star Entertainment Group (ASX:SGR) entered a trading halt ahead of a court ruling on its money laundering compliance breaches.

AUSTRAC wants up to $400m, while Star says anything above $100m could send it broke. That’s after a $300m rescue last year.

For once, the casino really does have the odds stacked against it.

ASX LEADERS

Today’s best performing stocks (including small caps) intraday:

Security Description Last % Volume MktCap TYX Tyranna Res Ltd 0.003 50% 649,015 $7,832,300 VEN Vintage Energy 0.002 50% 10,000,000 $2,440,336 MAY Melbana Energy Ltd 0.004 33% 15,388,594 $11,345,906 SPX Spenda Limited 0.002 33% 18,398,189 $1,858,351 TEM Tempest Minerals 0.004 33% 4,273,642 $3,305,629 WHK Whitehawk Limited 0.004 33% 535,538 $4,196,985 RBR RBR Group Ltd 0.020 33% 2,588,682 $2,294,169 AX8 Accelerate Resources 0.005 25% 2,800,000 $5,864,755 RKB Rokeby Resources Ltd 0.003 25% 500,000 $5,953,460 NVA Nova Minerals 0.440 22% 682,762 $78,907,405 FBR FBR Ltd 0.056 22% 2,106,429 $8,809,714 XPN Xpon Technologies 0.015 21% 10,223,449 $6,068,276 PKY Pathkey.Ai Ltd 0.018 20% 663,174 $20,273,594 JAL Jameson Resources 0.048 20% 606,023 $46,398,150 PVT Pivotal Metals Ltd 0.012 20% 160,503 $13,150,955 RLC Reedy Lagoon Corp. 0.003 20% 5,000,000 $5,541,767 MNE Macallum New Energy 0.190 19% 353,449 $13,638,095 RZI Raiz Invest Limited 0.385 18% 73,831 $34,251,753 MTM Metallium Ltd 0.230 18% 2,618,023 $147,281,992 AR9 Archtis Limited 0.080 18% 841,599 $32,897,476 AMN Agrimin Ltd 0.035 17% 67,873 $11,697,883 LIT Livium Ltd 0.007 17% 107,142 $13,713,884 NPM Newpeak Metals 0.007 17% 503,400 $3,659,475 SHE Stonehorse Energy Lt 0.014 17% 7,169,784 $8,213,221 SDR Siteminder 3.320 16% 2,348,906 $812,453,568

RBR Group (ASX:RBR) has landed a roughly US$2m contract to build worker accommodation for Exxon’s Rovuma LNG project in Mozambique, its first win there since force majeure was lifted.

The job covers facilities for at least 100 workers, with delivery due in January 2027, and could open the door to more work on a 700-person camp, while RBR pursues around US$100m in other tenders.

Nova Minerals (ASX:NVA) has cleared the final permitting hurdle for its Alaska antimony project, putting construction and targeted 2027 production firmly on the agenda.

With US$43.4m in US defence funding, engineering completed and key equipment delivered, it’s now getting down to the business of building a domestic American supply chain for the critical mineral.

FBR (ASX:FBR) has pocketed a $198,000 deposit from US-based Industrial Robotics after its Mantis robotic welding machine passed factory testing, making the first sale binding.

It’s now showing off the machine to major shipbuilders and manufacturers before shipping it to the US in early 2027.

ASX LAGGARDS

Today’s worst performing stocks (including small caps) intraday:

Security Description Last % Volume MktCap RTR Rumble Res Limited 0.026 -35% 15,519,446 $53,077,533 H3E H3 Energy Ltd 0.003 -33% 8,314,581 $6,033,432 YAR Yari Resources 0.002 -33% 3,444,411 $4,426,932 OVT Ovanti Limited 0.002 -25% 1,517,497 $2,463,348 OLY Olympio Metals Ltd 0.035 -24% 439,987 $11,090,548 QUE Queste Communication 0.039 -22% 22,030 $1,343,151 AM5 Antares Metals 0.004 -20% 4,092,383 $5,350,643 AS2 Askarimetalslimited 0.004 -20% 110,000 $4,344,227 ATT Altitude Minerals 0.004 -20% 553,296 $2,565,173 LU7 Lithium Universe Ltd 0.002 -20% 300,000 $4,721,704 SRJ SRJ Technologies 0.004 -20% 1,884,146 $8,616,092 FCT Firstwave Cloud Tech 0.005 -17% 203,000 $13,669,007 TMX Terrain Minerals 0.003 -17% 6,457,858 $11,820,685 MBK Metal Bank Ltd 0.007 -13% 2,854,235 $7,883,938 NWM Norwest Minerals 0.007 -13% 151,197 $10,815,090 OEL Otto Energy Limited 0.007 -13% 2,253,268 $38,360,078 STH Stepchange Holdings 0.115 -12% 81,165 $21,368,665 SLA Solara Minerals 0.130 -10% 63,096 $8,589,049 RIM Rimfire Pacific 0.009 -10% 5,160,872 $29,991,388 FRE Firebrickpharma 0.028 -10% 20,564 $9,551,290 AMK Almasar Minerals 0.190 -10% 4,450 $18,250,773 OZM Ozaurum Resources 0.067 -9% 85,661 $21,474,939 KYP Kinatico Ltd 0.123 -9% 296,518 $58,944,980 PEC Perpetual Res Ltd 0.010 -9% 1 $11,923,276 TAT Tartana Minerals Ltd 0.010 -9% 16,216 $4,780,675

IN CASE YOU MISSED IT

Astron (ASX:ATR) has received conditional approval for up to $180m in government loans towards its Donald rare earths and mineral sands project.

Nova Minerals (ASX:NVA) has secured final permits for its Alaska antimony project ahead of planned production next year.

Pursuit Minerals (ASX:PUR) has recorded its highest lithium concentration of 995mg/L in brine samples from Mito at Argentina’s Rio Grande Sur project.

True North Copper (ASX:TNC) has extended Mt Oxide’s prospective Aquila-Chidna corridor beyond 4km with rock chips grading up to 3.01% copper.

Unity Metals (ASX:UM1) has begun a 3000m diamond drilling campaign to test gold extensions and new targets at Cambodia’s O’Phlay project.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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