The Day Ahead
Oil prices surged above $80 a barrel after President Trump reinstated a blockade of the Strait of Hormuz and imposed a 20 per cent toll on cargo — the dominant macro risk for the day. Expect volatility in energy stocks and cost pressures across mining operations that rely on diesel and transport. The Australian dollar is under pressure below US70¢, and traders are increasing bets on a US rate rise this month.
The Genesis-Vault gold merger is the biggest M&A story in Australian mining. The market will scrutinise Raleigh Finlayson’s plan to defer $280 million in mill capex and process Genesis ore at Vault’s Leonora mill. With gold down 25 per cent from its peak, the deal’s emphasis on downside protection is timely. Watch for further consolidation signals in the gold sector.
On the policy front, Treasurer Chalmers’ intervention to block Chinese investors from Northern Minerals’ rare earths project signals ongoing geopolitical tension in critical minerals. The Monash Critical Minerals Initiative launches today, highlighting the push to build domestic processing capacity. Also watch for further developments on the KPMG leaks scandal and potential job cuts, which could affect consulting services to the resources sector.
Currency Movements
| Pair | Price | 24hr Change | 7-Day Trend |
|---|---|---|---|
| AUD/USD | 0.6942 | -0.0002 (-0.03%) | |
| EUR/USD | 1.1404 | -0.0038 (-0.33%) | |
| GBP/USD | 1.3362 | -0.0037 (-0.28%) | |
| USD/JPY | 162.32 | +0.1930 (+0.12%) | |
| USD/CAD | 1.4104 | -0.0033 (-0.23%) | |
| USD/CHF | 0.8126 | +0.0044 (+0.54%) | |
| NZD/USD | 0.5795 | +0.0013 (+0.22%) |
Yesterday's Key Stories
Gold & Precious Metals
- Genesis Minerals and Vault Minerals signed a binding merger agreement to create a $12.6 billion gold miner producing 600,000–700,000 ounces annually, ranking third in Australia and top 20 globally. The deal values Vault at about $5.6 billion in cash and shares, with synergies from adjacent Western Australian assets expected to save $2 billion over 10 years, including $715 million in avoided capital expenditure. Genesis managing director Raleigh Finlayson will lead the merged group.
- New Murchison Gold reported high-grade drill results from its Cloudkicker deposit in WA, including 10 metres at 13.61 g/t gold and 1 metre at 54.80 g/t. The CEO said the results will likely increase grade and tonnage, with production expected to contribute approximately 20,000 ounces over the next 12–18 months with minimal additional infrastructure.
Critical Minerals & Rare Earths
- Monash University launched the Critical Minerals Initiative (MCMI), bringing together over 40 researchers to address Australia’s processing capacity for rare earths, lithium, cobalt and other minerals essential for clean energy. The initiative involves partners including CSIRO, Geoscience Australia and the IEA, and responds to falling exploration rates and concentrated offshore processing.
- Treasurer Jim Chalmers ordered Northern Minerals to disregard the voting rights of a group of dissident shareholders, continuing efforts to prevent Chinese influence over the Browns Range heavy rare earths project. The company is nearing a final investment decision on the $592 million mine, with production targeted by Christmas 2028. Northern Minerals’ share price rose 7.4 per cent on the news.
- Group 6 Metals reported a record processing quarter at its Dolphin tungsten mine on King Island, processing 77,953 tonnes of ore and producing 21,297 MTU of tungsten trioxide. Underground mining commenced at quarter end, with higher-grade ore expected from late September. The company generated $40.5 million in cash from operations and closed the quarter with $49.5 million cash.
Oil & Geopolitics
- President Trump announced a US blockade on Iranian ships and a 20 per cent toll on cargo through the Strait of Hormuz, escalating the conflict. Oil prices surged above $80 per barrel, US equity benchmarks fell, and the Australian dollar dropped below US70¢. Analysts warned of sustained high petrol prices for Australian motorists and critical global oil supply risks.
- DP World is planning a new port in Fujairah on the UAE’s east coast to bypass the Strait of Hormuz, with initial investment of hundreds of millions of dollars. The Iran war has significantly impacted Jebel Ali’s activity, with Moody’s estimating a drop in DP World’s earnings from $6.6 billion in 2025 to about $5.9 billion this year.
- The Albanese government fears the US-Iran conflict will continue until the US midterm elections, damaging consumer and business confidence and pressuring inflation due to high oil prices. Australian officials call for de-escalation and freedom of navigation.
Mining Technology & Services
- Eriez’s StackCell flotation technology is being adopted in coal preparation plants across North America and Australia, offering high recovery performance in a compact footprint to improve yield and reduce waste. The technology also has applications in base metals and precious minerals.
- Deswik launched its NOVA platform integrating mining, blending and haulage planning into a single workflow for open pit operations, enabling faster scenario testing and improved decision-making for complex deposits.
- Lincom Group opened a new branch in St Leonards, Tasmania, providing faster access to service, spare parts and technical support for customers in the region, marking a milestone in the company’s national expansion.
- The Association of Mining and Exploration Companies (AMEC) urged Western Australia’s new Minister for Mines, Petroleum and Exploration, Daniel Pastorelli, to prioritise legislative and regulatory reforms including the Mining Amendment Bill 2025 and recommendations from the Review of Native Title and Aboriginal Cultural Heritage Processes.
Today's Useless Fact
Coca-Cola contained Coca (whose active ingredient is cocaine) from 1885 to 1903.