As expected, the ASX dipped today.
The S&P/ASX200 dropped 22.20 points or 0.33% to 6,607.10. Over the last five days, the index has lost 1.39% and 9.02% over the last 52 weeks.
Bottom-performing stocks in the index were St Barbara Ltd (ASX:SBM) down 8.66% and Iluka Resources Ltd (ASX:ILU) down 7.94%.
Iron ore futures plunged in late trade.
Singapore iron ore futures for July are down 4.8% to $US108.60, while August futures trade 5.7% lower to $US106.75: a year ago a tonne of iron ore was selling for more than $US200.
That fall in iron ore led to sell downs of some major companies including BHP Group Ltd (LSE:BHP, ASX:BHP) which was down 5.5% to near eight-month lows of $37.80, while Rio Tinto Ltd fell 7.4% to a seven-month low, along with Fortescue Metals Group (ASX:FMG), which was down 4.6% to its own seven-month low.
In the news
Stone cold energy prices
All the major banks have now lifted interest rates in line with the Reserve Bank of Australia’s cash rate hike of 0.5% yesterday, however that is just one part of the inflation puzzle Australians face.
Commonwealth Bank economists are predicting high electricity prices will remain for some time due to high international energy commodity prices, issues in domestic coal power generation and a lull in renewable power.
The bank’s economists believe we may not see any relief until at least 2025. In a report released today titled 'Australia’s energy sector – The perfect storm' CBA Mining and Energy economist Vivek Dhar said consumers should look to electrify gas usage where possible.
“We’re seeing a confluence of factors impacting Australia’s energy prices. Consumers may need to adjust their activity in order to avoid peak prices in Australian winter and summer," he said.
"While we can expect renewable energy to continue creating a greater impact on Australia’s energy grid, the lull from May to August will see fossil fuel power generation continue to play a significant role."
Winter peaks in electricity prices will be worse as coal power is retired, but this will be seasonal.
“Each season will continue to bring its own challenges yet the growth and advancement of renewable power generation, storage and transmission will continue to be the best opportunity to reduce prices over the medium term," Dhar said.
“We can expect prices to fall later this year as global demand weakens however it is unlikely they’ll return to the same levels Australians have come to expect at the pump.”
Here’s a look at five of today's top small-cap stories.
Jindalee Resources rises on boosting indicated resource at McDermitt Lithium Project by 170%
Jindalee Resources Ltd (ASX:JRL) traded higher after increasing the indicated resource at the McDermitt Lithium Project in the US by 170% to 616 million tonnes at 1,460 parts per million (ppm) lithium for 4.8 million tonnes of lithium carbonate equivalent.
Prescient Therapeutics granted key US patent for OmniCAR portfolio of therapies
"This patent is a key plank in the protection of the OmniCAR platform, especially in the US, which is the world’s largest healthcare market,” Prescient Therapeutics Ltd (ASX:PTX) MD and CEO Steven Yatomi-Clarke said.
Meeka Gold fields broad gold hits with grades up to 63 g/t at Murchison Project
Meeka Gold Ltd (ASX:MEK) has revealed that gold mineralisation at Turnberry strikes over 1.5 kilometres within a highly fertile 7-kilometre gold shear system, which also hosts shallow, high-grade gold at St Anne’s.
Evolution Energy Minerals moves to leverage "exceptionally low" impurity graphite for battery and nuclear applications
“It is very pleasing that the exceptionally low molybdenum and boron content of Chilalo graphite opens two pathways for use of our graphite in value-added markets: a range of premium performance batteries, where extremely low concentrations of molybdenum are a prerequisite, and nuclear-grade graphite, which requires naturally low levels of boron,” said Evolution Energy Minerals Ltd (ASX:EV1) MD.
Alkane Resources exceeds gold production guidance
Alkane Resources Limited (ASX:ALK) has exceeded FY2022 production guidance of between 55,000 to 60,000 ounces at its Tomingley Gold Operations in Central West New South Wales as the company looks to become Australia’s next multi-mine gold producer.
On your six
Western Australia is the beating heart of Australia’s mining industry, but it hasn’t always been the country’s leading mining state.
How has mining in Western Australia shaped the industry?
Following a fallow period that included two world wars and a state government focused on agriculture, iron ore would turn Western Australia’s fortunes around.
The one for good luck
Galileo Mining raises $20.4 million to aggressively explore significant new palladium province
Galileo Mining Ltd (ASX:GAL)’s Brad Underwood speaks with Proactive’s Elisha Newell about the $20.4 million the company has just raised to accelerate its exploration programs across its assets as it looks to aggressively explore the significant new palladium province within its Norseman Project area.