The Day Ahead
Keep a close eye on the RBA's reaction to the latest employment data. While the headline unemployment rate dipped to 4.4%, the trend rate hitting a four-year high suggests a softening labour market that may clash with recovering household spending. This tension makes the outlook for interest rates volatile; any sign that the economy isn't cooling enough to curb inflation will fuel bets on further hikes.
In the resources space, watch for further movement in critical minerals. With the Bankwest Curtin Economics Centre projecting a $100 billion annual contribution to WA by 2050, the strategic pivot from iron ore to high-value processing is becoming a dominant theme. Expect increased activity around sovereign AI and energy infrastructure as the government pushes for "sovereign capability" to avoid reliance on US-restricted tech.
Finally, monitor the fallout from the Middle East conflict on operational guidance. Worley’s second profit warning in two months proves that geopolitical instability is now a primary line item for engineering and resources firms, directly impacting EBITA and investor trust.
Yesterday's Key Stories
Mining & Resources
- BHP, Rio Tinto, and Caterpillar have launched a joint trial of battery-electric haul trucks at the Jimblebar mine to test the commercial feasibility of decarbonising large-scale operations.
- Hancock Prospecting invested up to US$100 million in Lumitron Technologies to commercialise X-ray technology for mineral analysis and ore recovery.
- Mineral Resources ceased operations at the Lucky Bay garnet project, axing 110 jobs and recording a $40 million closure loss due to high costs and Middle East conflict impacting sales.
- Fortescue is facing a landmark class action alleging systemic sexual harassment and assault at remote Pilbara camps.
- Ramelius Resources received EPA approval for its Roe gold project in WA, clearing a major regulatory hurdle for development.
- Tivan is seeking $50 million in financing, potentially via a joint venture with Sumitomo Corporation, to revive the Molyhil Tungsten Project.
- Metso secured two multi-year service agreements worth approximately €60 million for filtration support in South America and Asia-Pacific.
- Sunstone Metals has engaged four banks to raise capital for its gold and copper projects.
Energy & Infrastructure
- AEMO reports that a surge in battery installations has reduced the need for 1,435km of new transmission lines, though $106 billion is still required for the 2050 net-zero transition.
- EnergyCo is facing resistance from New England rural councils that have denied access to town water for the Renewable Energy Zone construction.
- Lendlease sold its remaining stake in retirement operator Keyton to Aware Super for $525 million to reduce group debt.
Macro, Policy & Finance
- The Australian Government has back-down on certain tax measures, including the "widow's tax" on capital gains, creating a $1 billion budget hole to secure Senate passage.
- Judo Bank saw its share price plunge 40% after revealing higher-than-expected credit losses in the manufacturing and construction sectors.
- Worley issued its second profit warning in two months, citing Middle East conflict delays and a stronger Australian dollar.
- Corporate Travel Management (CTM) remains suspended from the ASX as Deloitte uncovers accounting discrepancies in the UK and Australia.
- Teal independents Allegra Spender and Zali Steggall have officially registered a new political party, Community Strong Australia, to contest Senate seats.