ASX Runners of the Week: DY6 Metals, Dateline, Andromeda & Jindalee
The company shot out of a cannon on Tuesday after it revealed that historical assays at its Tundulu REE project in Malawi features significant high-grade mineralisation of the critical mineral gallium.
A review of past drill results confirmed high-grade intercepts, including a 74-metre hit grading 93.3 grams per tonne (g/t) gallium oxide with 1.56 per cent total rare earth oxides (TREO) from 72m depth and 53m running 72.8g/t gallium with 1.02 per cent TREO.
Gallium was recently put on China's hit list for critical mineral export controls, as the metal's demand and price has steadily increased in recent years for its uses in semiconductors. China controls about 94 per cent of global gallium supply, leaving the rest of the world frantically searching for the metal, which has interestingly popped up in DY6's carbonotite hosted rare earth project.
The company noted its gallium mineralisation was open at depth, with elevated results occurring within the saprolite clays near surface and again within fresh rock at depth. It has not assayed for deeper potential.
DY6's shares promptly quadrupled on Tuesday morning peaking at 18.5 cents for a gain of 340 per cent from last week's close of 4.2c. The company was quickly placed into a speeding halt by the good boys and girls down at the ASX, who insisted the company needed to supply more evidence and documentation.
Some $1.1 million worth of stock was exchanged in its one hour of trading on Tuesday, which was the company's highest most one-day volume over the past year.
DY6 says it will now kick off critical metallurgical test work on a Tundulu bulk sample to determine if the deposit can economically produce a multiple product package.
The company says substantial potential remains for additional gallium, as only 40 per cent of the 91.5-square-kilometre project area has been drill-tested. With gallium being thrown into the mix, Tundulu's already REE-rich deposit could quickly add a valuable byproduct.
Sampling carried out by the company found mineral rich carbonatite at the previously unexplored Tundulu Hill and Makhanga Hill to the east and west of Nathace respectively.
DATELINE RESOURCES LTD (ASX: DTR)
Up 329% (0.7c – 3.0c)
Charging late this week and going down by a nose is gold and rare earths hopefully Dateline Resources. The company was touted by Donald Trump on his Truth Social platform this week, with the leader of the free world giving his seal of approval to the company's Colosseum project outside of Las Vegas.
President Trump referred to the developing gold project as 'America's second rare earths mine', noting it had been approved after years of stalled permitting. In response, Dateline's share price surged 167 per cent on Friday on $370 million worth of shares traded.
Admittedly, the project is highly prospective for rare earth elements (REE) as it sits just 10km north of the globally significant Mountain Pass REE mine. However, the company has been primarily focussed on Colosseum's 1.1-million-ounce gold endowment. Gold is the only metal that has been mined from the large open pit mine since the 1800s.
Dateline will now look to weave rare earths exploration into its ongoing development story.
The gold project is no slouch, with Dateline wrapping a robust scoping study around its deposit, outlining an 8.3-year mine life with an annual output of 75,000 ounces at an all-in sustaining cost of $2500 per ounce.
The study projects a net present value of US$235 million and a 31 per cent internal rate of return, based on a conservative gold price of US$2200 per ounce.
With gold prices now more than US$3200 per ounce, the project's economics are significantly juiced up, forecasting total sales of nearly US$1.5 billion over its lifespan.
The Trump administration appears more focused on the project's rare earth elements potential and highlighted the project as 'America's second rare earth elements mine.'
An executive order from President Donald Trump earlier this year seeking to reduce US dependence on China seems to be the driving force here, however we wonder if the gun hoe leader of the free world may have gotten his wires crossed.
ANDROMEDA METALS LTD (ASX: ADN)
up 200% (0.95c – 2.85c)
Runners' final podium finish goes to high purity alumina hopeful Andromeda Metals after the company announced it had achieved the critical four nine purity designation (4N or 99.99 per cent) for its high purity alumina (HPA) product from its Great White kaolin project in South Australia.
Kaolin is a soft white alumina clay primarily used in ceramics and paints that can also be converted to HPA for high end uses in synthetic sapphires and smart phones.
Andromeda announced that after seven years of successful metallurgical test work, the company had achieved a 99.9985 per cent purity level from its kaolin sourced at its Great White project.
The news sent its share price skyward on Thursday, hitting a top of 2.85c on $6.5M worth of paper traded, exactly 200 per cent up on its close price from last week.
Andromeda says its HPA is among the highest quality grades, which makes it ideal for applications in batteries, semiconductors, ceramics and emerging technologies.
With demand for this critical mineral projected to exceed supply by 48 per by 2028, Andromeda is looking to cash in on the growing market, using its novel process flowsheet, which was confirmed by an independent analysis to produce a premium HPA.
The company says its lab scale trials sets it apart from other HPA producers, as Andromeda's process will likely be more cost and carbon effective than other reported processes.
Following the positive results, the company will look to complete a scoping study and investigate government funding opportunities. It locked in $75M in project debt financing a little over a month ago.
JINDALEE LITHIUM LTD (ASX: JLL)
Up 158% (26c – 67c)
The final Runner and critical minerals company for the week is Jindalee Lithium. After its promising start last week, the company got a run on with our critical minerals' quartet thanks to its addition to the US's FAST-41 framework.
The framework designation signals US federal interest in projects that are of national strategic importance and promises them a fast track to eventual production.
Jindalee Lithium started the week at relatively the same levels it was last week, before the Trump administration included its flagship McDermitt Lithium project in Oregon on the incoming US FAST-41 list.
The market quickly took notice, with five solid days of volume sending its share price to a high of 67c on Thursday, up 41c to a high of 67c. This was a 158 per cent increase on last week.
The company says its significant McDermitt deposit was designated a 'transparency project' under the FAST-41 framework because it has one of the biggest contained lithium resources nationally.
It was one of only 10 resource projects nationally listed in FAST-41 in a White House announcement early last week.
Jindalee has gotten busy simultaneously applying for US Department of Defence grants to co-fund a feasibility study at McDermitt. The company expects to know the success of any awards by the middle of the year.
The growing demand for domestically sourced lithium has been highlighted as a priority for the Trump administration, as have rare earths. In a struggling lithium market, getting government recognition at a counter cyclical time could be just what McDermitt needs to push on to become a producing lithium mine.
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Skovgaard added that whether or not a deal is reached, focus was already turning to the Kansas City Federal Reserve's August 21-23 Jackson Hole symposium, where chair Jerome Powell is due to speak on the economic outlook and the central bank's policy framework. Markets imply around an 85 per cent chance of a quarter-point rate cut at the Fed's meeting on September 17, and are priced for a further cut by December. The prospect of lower borrowing costs globally has underpinned stock markets, and Japan's Nikkei climbed to a fresh record high on Monday. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.1 per cent, having scaled a four-year peak last week. In Europe, Germany's DAX eased 0.3 per cent. Britain's FTSE was down 0.1 per cent. S&P 500 and Nasdaq futures eased 0.1 per cent, though both were near all-time highs. Valuations have been underpinned by a solid earnings season as the S&P 500 EPS grew 11 per cent on the year and 58 per cent of companies raised their full-year guidance. "Earnings results have continued to be exceptional for the mega-cap tech companies," said analysts at Goldman Sachs. "While Nvidia has yet to report, the Magnificent 7 apparently grew EPS by 26 per cent year/year in 2Q, a 12 per cent beat relative to consensus expectation coming into earnings season." This week's results will provide some colour on the health of consumer spending with Home Depot, Target, Lowe's and Walmart all reporting. In bond markets, the chance of Fed easing is keeping down short-term Treasury yields while the longer end is pressured by the risk of stagflation and giant budget deficits, leading to the steepest yield curve since 2021. European bonds also have been pressured by the prospect of increased borrowing to fund higher defence spending, pushing German and French long-term yields to their highest since 2011. Wagers on more Fed easing have weighed on the dollar, which dropped 0.4 per cent against a basket of currencies last week to last stand at 97.858. The dollar was up 0.2 per cent on the yen at 147.42, while the euro slipped to $1.1682 after adding 0.5 per cent last week. In commodity markets, gold bounced 0.4 per cent to $3,349 an ounce after losing 1.9 per cent last week. Oil prices edged higher as White House trade adviser Peter Navarro said India's purchases of Russian crude were funding Russia's war in Ukraine and had to stop, even as Trump backed away from threats to place more restrictions on Russian oil exports. Brent was up 0.4 per cent at $66.08 a barrel, while US crude rose 0.5 per cent to $63.11 per barrel. European shares wobbled ahead of what is likely to be an eventful week for US interest rate policy, as investor attention turns to Washington where Ukraine's Volodymyr Zelenskiy and European leaders are meeting Donald Trump. The pan-European STOXX 600 index was down about 0.2 per cent after hitting its highest level since March on Friday, while the MSCI All Country World Index hovered close to the record high touched last week. Earlier in the Asian session, indices in Japan and Taiwan notched record peaks, while a gauge of Chinese stocks reached its highest level in a decade. Investors were bracing for US President Trump's meeting with Ukrainian President Zelenskiy and European leaders later on Monday US time to discuss the next steps to end the war in Ukraine, after Trump's summit with Russian President Vladimir Putin in Alaska on Friday. While the summit did not result in an agreement, Trump afterwards appeared more aligned with Moscow on seeking a full peace deal with Ukraine instead of a ceasefire first. "It will be a bit of a muted start to the week," said Lars Skovgaard, senior investment strategist at Danske Bank, after the Russia-US talks on Friday. Skovgaard added that whether or not a deal is reached, focus was already turning to the Kansas City Federal Reserve's August 21-23 Jackson Hole symposium, where chair Jerome Powell is due to speak on the economic outlook and the central bank's policy framework. Markets imply around an 85 per cent chance of a quarter-point rate cut at the Fed's meeting on September 17, and are priced for a further cut by December. The prospect of lower borrowing costs globally has underpinned stock markets, and Japan's Nikkei climbed to a fresh record high on Monday. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.1 per cent, having scaled a four-year peak last week. In Europe, Germany's DAX eased 0.3 per cent. Britain's FTSE was down 0.1 per cent. S&P 500 and Nasdaq futures eased 0.1 per cent, though both were near all-time highs. Valuations have been underpinned by a solid earnings season as the S&P 500 EPS grew 11 per cent on the year and 58 per cent of companies raised their full-year guidance. "Earnings results have continued to be exceptional for the mega-cap tech companies," said analysts at Goldman Sachs. "While Nvidia has yet to report, the Magnificent 7 apparently grew EPS by 26 per cent year/year in 2Q, a 12 per cent beat relative to consensus expectation coming into earnings season." This week's results will provide some colour on the health of consumer spending with Home Depot, Target, Lowe's and Walmart all reporting. In bond markets, the chance of Fed easing is keeping down short-term Treasury yields while the longer end is pressured by the risk of stagflation and giant budget deficits, leading to the steepest yield curve since 2021. European bonds also have been pressured by the prospect of increased borrowing to fund higher defence spending, pushing German and French long-term yields to their highest since 2011. Wagers on more Fed easing have weighed on the dollar, which dropped 0.4 per cent against a basket of currencies last week to last stand at 97.858. The dollar was up 0.2 per cent on the yen at 147.42, while the euro slipped to $1.1682 after adding 0.5 per cent last week. In commodity markets, gold bounced 0.4 per cent to $3,349 an ounce after losing 1.9 per cent last week. Oil prices edged higher as White House trade adviser Peter Navarro said India's purchases of Russian crude were funding Russia's war in Ukraine and had to stop, even as Trump backed away from threats to place more restrictions on Russian oil exports. Brent was up 0.4 per cent at $66.08 a barrel, while US crude rose 0.5 per cent to $63.11 per barrel.
