Author: TSX Stocks

Sikhulekelani Moyo, [email protected]

CALEDONIA Mining Corporation Plc, which owns Gwanda-based Blanket Mine, has said the feasibility study for its Bilboes gold mining project, 75km North of Bulawayo, continues to show positive fundamentals, which may benefit the group.
Blanket Mine is already one of Zimbabwe’s biggest gold producers, having produced 76 656 ounces last year.

In 2023, Blanket Mine managed 75 416 ounces. Caledonia’s long-term vision is to become a multi-asset gold producer in Zimbabwe.

In an update statement, Caledonia said it was making good progress on the feasibility study with the support of DRA Projects and other technical consultants.

While the feasibility study was initially targeted for completion in the first quarter of 2025, Caledonia has extended the timeline to explore fully the several material optimisation opportunities.

It said the opportunities have the potential to enhance project economics and reduce upfront capital requirements.
The company said the feasibility study supersedes the Preliminary Economic Assessment released on June 3, 2024, which outlined attractive project economics and a mine plan capable of tripling Caledonia’s gold production and positioning the company as an intermediate gold producer.

“Encouragingly, ongoing work continues to confirm the project’s attractive fundamentals. Against the backdrop of a strong gold price, Bilboes remains both compelling and financeable,” said the company.

“Key areas of optimisation currently under review include engaging with the authorities to explore the potential sale of concentrate, which could significantly reduce upfront capital expenditures by deferring the capital expenditure on a BIOX processing circuit, at least in the first few years of production, and evaluating the potential relocation of the Tailings Storage Facility to a more efficient site, including on Caledonia’s Motapa property adjacent to Bilboes, where the topography could lead to lower initial construction costs,” it said.

Caledonia also said it was incorporating near-term opportunities at Motapa into the Bilboes feasibility study, following strong exploration results in 2024 and the additional exploration and development work planned at Motapa this year.

The giant gold producer also said the exploration at Motapa had been particularly promising, indicating the presence of new mineralised zones within a few hundred metres of the proposed Bilboes processing plant.

“Demonstrating significant resource additions at Motapa has the potential to materially improve the long-term economics of a combined Bilboes-Motapa project,” the Toronto Stock Exchange and Victoria Falls Stock Exchange group said.
Caledonia continues to assess near-term revenue opportunities across its portfolio.

In particular, high-grade mineralisation recently identified at the Blanket Mine could make a meaningful contribution to initial capital requirements for Bilboes through further flexibility around funding.

“The board remains fully committed to maximising shareholder value: this means ensuring that Bilboes is optimised both technically and financially, while continuing discussions with funding partners and relevant authorities in Zimbabwe.

“The optimisation work is advancing well, and the company will provide a further update on the expected timing of the feasibility study in due course,” the company said.

Caledonia chief executive officer Mr Mark Learmonth said Bilboes could be transformative for Caledonia, pointing out the group was working to make sure the requisite funding is secured.

“We are encouraged by the results to date and are taking a disciplined approach to optimisation — both to enhance returns and to ensure we can fund the project in the most efficient way possible,” he said.

“With strong exploration results at Motapa, promising developments at Blanket and supportive market conditions, we remain confident in Bilboes’ ability to significantly reshape Caledonia’s growth profile.”

In January 2023, Caledonia acquired Bilboes Gold Limited for US$53,2 million, as part of its strategy to become a multi-asset gold producer in Zimbabwe, with the goal of producing more than 250 000 ounces of gold annually.

• Despite a late upturn, the ASX 200 closed 0.38% in the red on Thursday

• Blame factor 1: Trump and his 25% US auto import tariffs, set to come into play early April

• Blame factor 2: A Wall Street tech rout, which Trump had a hand in, too 

Instead, Thursday took a sharp, Trump-induced droop right out of bed, that levelled out into an afternoon malaise, as this Google graph clearly shows.

Okay, a slight tail up at the very end there almost puts paid to the narrative.

Regarding some macro conditions affecting the local market today, see our Lunch Wrap coverage, which went into most of the details you need to know.

But… to quickly recap, tech stocks took a pounding today on the back of a Wall Street dump across the sector, with AI behemoth Nvidia leading losses with a 6% stumble.

According to reports, fears around the company’s business in China sent investors into a bit of a tizz, after the White House added several Chinese companies to a trade blacklist.

Per a report in The Australian:

The US has added dozens of Chinese companies to a trade blacklist over national security concerns. American businesses seeking to sell technology to these companies will need approval from the government.

One of those companies blacklisted is Inspur Group – China’s largest server maker and one of the key Chinese customers of Nvidia.

The Trump effect didn’t end there, his newly announced 25% US auto import tariffs (set for April 3) also wrought havoc on global markets, with Tesla, among other carmakers, feeling the sting.

Where’s the good news, then? Gold, that’s where. It’s the obvious playbook right now, and for good reason.

Goldman Sachs released a prediction today that the record breaking run in the yellow metal isn’t about to slow down any time soon. In fact, the US investment bank reckons it’s set to turn on the gas even more, noting the medium-term price risks for gold “remain skewed to the upside” and “in tail-risk scenarios, gold can exceed $4,200 by end-2025.”

Meanwhile, Bitcoin’s a ‘safe haven’ like gold, too, right? Right…?

Hmm, we’ll get back to you on that one. The leading crypto is still a risky bet but… it’s travelling pretty darn well all things considered over the past 24 tech-brutalised hours. As it was at lunch, it’s still changing hands for about US$87,400 at the time of publishing this article.

ASX market news

A few headline acts from today…

Discount store chain The Reject Shop (ASX:TRS) had a beaut day, bagging itself a 110% gain on the back of a $259 million takeover offer from Dollarama, a Canadian giant in the bargain basement biz.

Dollarama is based in Montreal and listed on the Toronto Stock Exchange and the takeover, if approved by shareholders, is expected to be completed in the second half of this year.

The takeover has the backing of the Aussie company’s largest shareholder, Kin Group, controlled by billionaire Raphael Geminder.

TRS said it had entered into a binding scheme implementation agreement with Dollarama for the takeover price of $6.68 per share, representing a 112% premium to the company’s most recent closing price.

Tim Boreham gave us a spark of good news earlier in the day, noting the ASX healthcare’s version of the “Magnificent 7” has been in fine fettle despite “the downbeat narrative about US healthcare policy and cuts to funding agencies”.

Per Tim:

Leading  the posse, Syntara (ASX:SNT) shares have soared 90%, followed by Paradigm Biopharmaceuticals (ASX:PAR) (57%), Botanix Pharmaceuticals (ASX:BOT) (48%), and Actinogen Medical (ASX:ACW) (42%).

Telix Pharmaceuticals (ASX:TLX) , Mesoblast (ASX:MSB) and Dimerix (ASX:DXB) shares are around 25% to the good.

Bell Potter says the key thread is that these stocks have moved on company-specific catalysts, which transcend the general market conditions.

Still on healtchcare, Opthea hasn’t shared the good form. Valerina Changarathil at The Australian, noted that investors in ASX-listed biopharma Opthea “remain in brace position” awaiting the outcome of its survival talks with funds providers – following failed trial results in a key clinical study.

Opthea’s shares have been suspended for trading until March 31 following negative topline results from the first of two phase III clinical trials of its lead wet age-related macular degeneration candidate OPT-302.

“The negative results mean it may need to make sizeable payments under its Development Funding Agreement to investors that have security over its assets. Opthea has flagged the possibility of no longer trading as a going concern,” wrote Changarathil.

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

Other than the Reject Shop, what else caught the eye today in small caps? These…

Lykos Metals (ASX:LYK) has risen 73% today after  announcing it has raised ~$400,000 via a placement of ~44,42 million fully paid ordinary shares at 0.09 cents (A$0.009) per share.

The placement issue price is at a 18.2% discount to the last close and includes one free attaching unlisted option for  every two shares issued, exercisable at  2 cents ($0.02) with an expiry date of three years  from the date of issue and subject to shareholder approval.

The Funds raised will go towards exploration and development of its existing projects along with new opportunities and working capital. LYK said it “kept the raise small … to minimize dilution” while it looks for new projects. It remains optimistic the Bosnian Government will deliver a ‘near term favourable outcome’ on a renewed grant of its Sockovac (Petrovo) project after Lykos reduced its application area from 44km2 to 10km2, covering its key drill targets.

Sunstone Metals (ASX:STM) is also up 17% today and has been on the fundraising trail, receiving firm commitments for $4m (before costs) via an oversubscribed share placement at 0.5c per share to new, existing institutional and sophisticated shareholders.

STM says placement proceeds  will  be  used  to  fund  working  capital  “as  it  progresses  the ongoing  corporate  discussions  to  a  conclusion”.

The company has been pursuing partnership opportunities to unlock the value of its gold and copper discoveries.

For more, check out today’s Resources Top 5.

ASX SMALL CAP LAGGARDS

Today’s worst performing small cap stocks:

IN CASE YOU MISSED IT

Adisyn (ASX:AI1) has secured early access to an Atomic Layer Deposition (ALD) system through a strategic partnership with Tel Aviv University’s TAU Nano Center. This allows AI1’s semiconductor arm, 2D Generation, to run two ALD systems in parallel, accelerating progress toward a key milestone – depositing graphene on metallic and non-metallic surfaces at sub-300°C.

First Lithium (ASX:FL1) is moving toward a maiden resource estimate for its Blakala lithium project in Mali as the government resumes issuing mining licences. The company has secured $1.2 million in funding to support the licence renewal process and further project development.

Sunshine Metals (ASX:SHN) is raising $3 million to advance drilling at four shallow gold targets in Queensland. Funds will also support metallurgical studies and mining assessments at the Ravenswood consolidated project.

Recharge Metals (ASX:REC) is finalising plans for drilling at its Carter uranium project in Montana, with target generation and geological reviews nearing completion. The team recently visited the site, engaging with key stakeholders and advancing permitting for the next exploration phase.

At Stockhead, we tell it like it is. While Adisyn, First Lithium, Sunshine Metals, Recharge Metals, Chariot Corporation, Singular Health Group and Scorpion Minerals are Stockhead advertisers, they did not sponsor this article.

Originally published as Closing Bell: Tech tumble and Trump tariffs trample Thursday

• The ASX 200’s upbeat mood didn’t last long. The index has slipped today after a tech rout on Wall Street

• Trump’s auto import tariffs announcement has absolutely not helped matters on a macro level

• Hey-ho, at least The Reject Shop has found itself a bargain

At the time of writing, the ASX 200 is down 0.53% after a tough session on Wall Street.

The S&P 500 shook off a percentage point overnight, the Dow Jones dipped 0.3 per cent and the tech-heavy Nasdaq slumped 2 per cent.

In fact, along with Trumpian tariffs rearing their ugly head(s) again, it was partly a tech sell-off that has set the tone for today, with ‘Magnificent Seven’ stocks including Nvidia and Tesla taking a hammering.

AI darling Nvidia was hit hardest, falling 6% to bring its loss for the year so far to 15.5%. Other AI stocks took collateral damage.

Tesla copped a 5.58% loss meanwhile as it continues to attempt to absorb some politically charged anger being thrown at CEO Elon Musk.

Meanwhile, other US automakers were wrecked after the White House revealed that President Donald Trump would be announcing tariffs on auto imports, confirming a 25 per cent tariff.

“US auto giants have already spread their production around North America following prior free-trade deals encompassing the United States, Canada and Mexico. General Motors sank 3.1%. Ford Motor went from an early gain to a loss and back before inching up by 0.1%,” wrote Bloomberg.

Per The Australian’s reporting, the US will start collecting the auto tariffs on April 3. The 25 per cent tariff will be added on top of existing duties, including a 2.5 per cent tariff currently imposed by the US.

Meanwhile, Asian carmakers have been feeling the tariffs fear, too.

Per The Australian:

In Japan, Toyota Motor shares were recently down 3.2 per cent, Nissan Motor was 3 per cent lower and Honda Motor was off by 2.3 per cent.

In South Korea, Hyundai Motor was 2.9 per cent lower and Kia was down 1.7 per cent.

Anyhoo, what else, before we look at some ASX market headlines? How’s the crypto market holding up? Better than expected, really (for now). Bitcoin is floating around US$87,400, just trading within the fairly tight $86k-$89k range it’s been in for the past few days.

The Aussie dollar, meanwhile, is trading around US62.84c.

Here’s what the sectors looked like a short time ago. Tech… yikes.

ASX market news

Discount store chain The Reject Shop (ASX:TRS) was soaring about 110% earlier today after a big takeover offer (more details below) from a Canadian giant in the bargain basement biz – Dollarama, which is based in Montreal and listed on the Toronto Stock Exchange.

The takeover, if approved by shareholders, is expected to be completed in the second half of this year.

Meanwhile, WiseTech Global (ASX:WTC) was attempting to stem its bleed earlier after major shareholder AustralianSuper’s $50m selldown. The tech rout overnight won’t be helping matters for the embattled software player, either. At time of writing, WTC is down 2.6%.

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for March 27 :

The Reject Shop (ASX:TRS), as mentioned briefly above in ASX Market News, has been flying today, to the tune of 110%, after announcing Canadian retailer Dollarama has made a $259 million takeover offer. It has the backing of the Aussie company’s largest shareholder, Kin Group, controlled by billionaire Raphael Geminder.

TRS said it had entered into a binding scheme implementation agreement with Dollarama for the takeover price of $6.68 per share, representing a 112% premium to the company’s most recent closing price.

Linius Technologies(ASX:LNU) is continuing its upward trend, rising 33% in morning trade following yesterday’s announcement it was establishing a $750,000 convertible note facility and binding commitments for $300,000 in notes from professional and sophisticated investors.

LNU will use the extra funding as an additional runway for unlocking growth, delivering on a growing pipeline and scale from new and existing partnerships with industry leaders Prime Focus, Fujitsu, Magnifi and Avid along with its goal of achieving cashflow breakeven.

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for March 27 :

IN CASE YOU MISSED IT

Lithium explorer Chariot Corporation (ASX:CC9) is raising up to $2 million through convertible note financing, with an initial drawdown of $600,000. The structure offers capital flexibility while minimising the dilution associated with a standard equity raise.

Medical technology company Singular Health Group (ASX:SHG) has completed a $500,000 raise through the issuance of over 5 million new shares to Provider Network Solutions (PNS) as part of a cornerstone investment. The company has also issued 50,000 shares from the exercise of options, with the PNS shares subject to a 9-month voluntary escrow.

Scorpion Minerals (ASX: SCN) has secured commitments to raise $250,000 through the issuance of 12.5 million shares at 0.2 cents per share, with proceeds going toward advancing the Murchison Gold Strategy and near-term drilling.

At Stockhead, we tell it like it is. While Chariot Corporation, Singular Health Group and Scorpion Minerals are Stockhead advertisers, they did not sponsor this article.

Originally published as Lunch Wrap: Tech stocks take a beating; Trump’s auto tariffs weigh