Wednesday, February 1, 2023
HomeBusinessChinese interest in Aus coal resurges: ASX closes 0.44% higher

Chinese interest in Aus coal resurges: ASX closes 0.44% higher

Multiple Chinese companies are seeking to purchase coal mined in Queensland, Australia, according to Coronado Global Resources. This adds credibility to the expectation that China will lift its unofficial two-year ban on Australian coal. Reports suggest that China’s National Development and Reform Commission has held talks about potentially allowing some Chinese companies to resume coal trade with Australia. Coronado’s CFO Gerhard Ziems stated that the company has received enquiries from a number of parties.

- Advertisement -

The developers of Guinea’s Simandou iron ore project have invested in lower-cost equipment that is smaller and less efficient than the machines used by Australian miners in the Pilbara to offset their investment risk should the project be delayed. Analysts say without upgrades, the “sub-scale” equipment choices will affect Simandou’s ability to expand iron ore export volumes once production begins.

At the closing bell, the S&P/ASX 200 was 0.44 per cent higher at 7,490.40.


The Dow Jones futures are pointing to a rise of 11 points.
The S&P 500 futures are pointing to a rise of 0.75 points.
The Nasdaq futures are pointing to a fall of 2.5 points.
The SPI futures are pointing to a rise of 35 points when the market next opens.

Best and worst performers

The best-performing sector was REITs, up 1.82 per cent. The worst-performing sector was Financials, down 0.25 per cent.

The best-performing large cap was Mineral Resources (ASX:MIN), closing 5.28 per cent higher at $96.28. It was followed by shares in Pilbara Minerals (ASX:PLS) and Evolution Mining (ASX:EVN).

The worst-performing large cap was Mercury NZ (ASX:MCY), closing 2.72 per cent lower at $5.36. It was followed by shares in Cochlear (ASX:COH) and Qantas Airways (ASX:QAN).

Asian news

Japan’s Nikkei has gained 1.60 per cent. Other markets are closed for Chinese New Year.

Company news

Chrysos Corporation (ASX:C79) reported a 25 per cent growth in revenue from Q1 FY23 and 104 per cent growth YoY. The company also reported an increase in samples processed by 8 per cent compared to Q1 FY23 and 69 per cent YoY, reflecting a deployed utilization rate of 58 per cent. Shares closed 0.58 per cent higher at $3.47.

Antilles Gold (ASX:AAU) has updated its gold grades at its oxide deposit in Cuba. In addition, negotiations have now commenced to establish a joint venture between subsidiaries of Antilles Gold and the Cuban Government’s mining company, GeoMinera. In response, Mr Brian Johnson, Executive Chairman of Antilles Gold said, “Based on the results from the recent exploration program, the Company is confident that a relatively small, but gold-rich, mine could be developed next year.” Shares closed 5 per cent higher at 4.2 cents.

AusQuest (ASX:AQD) upgraded its iron concentrate to greater than 70 per cent at its project in WA. In response, AusQuest’s Managing Director, Graeme Drew, “Shareholders can look forward to more detailed assessments of the magnetite potential of this project over the coming quarters.” Shares closed 13.3 per cent higher at 1.7 cents.

Melbana Energy (ASX:MAY) provided an update on preparations for its first appraisal well in Block 9 PSC. Melbana Energy’s Executive Chairman, Andrew Purcell, has commented: “The pace of preparations is increasing as we move closer to commencing our first appraisal well.We’re all excited to see how this first formation performs.” Shares closed 6.49 per cent higher at 8.2 cents.

Spenda (ASX:SPX) provided a Quarter 2 fiscal year 2023 report. The figures show strong performance in key leading indicators, including a 33 per cent increase in Invoice Finance loan facilities, 69 per cent increase in the number of transactions processed and a 41 per cent increase in payment volume from the prior quarter. Shares closed 6.67 per cent lower at 1.4 cents.

Alcore, an 83 per cent-owned subsidiary of ABx Group (ASX:ABX), has received the first installment of a $7.5M grant from the Federal Government’s Modern Manufacturing Initiative (MMI). The funding will be used to support the proposed $16.4M aluminum bath recycling plant at Bell Bay, Tasmania, as well as pilot plant activities on the NSW Central Coast. Shares closed 3.85 per cent higher at 13.5 cents.

Commodities and the dollar

Gold is trading at US$1,934.40 an ounce.
Light crude is trading $0.05 higher at US$81.67 a barrel.
One Australian dollar is buying 70.37 US cents.

Peter Milios

Peter Milios is a recent graduate from the University of Technology – majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

Image & Story Credit:

- Advertisment -

Most Popular