Winners and Losers: Gold for PNX as market hits all-time high

Gold miner PNX Metals was the biggest Adelaide-based riser in a strong week for the ASX overall, which saw the national market hit a record high.

Feb 05, 2024, updated Feb 27, 2024
Photo: Supplied.

Photo: Supplied.

PNX Metals rallied on the back of strength in the commodities market this week and the release of its latest quarterly report which showed the company progressed with uranium and gold exploration activities.

It was also a beneficiary of 16-year highs for the uranium price, according to Baker Young Limited analysts.

“Despite broader energy price volatility this week, sporadically traded gold and base metal producer PNX has benefited from Uranium trading at fresh 16-year highs as supply setbacks from the world’s largest uranium producer (Kazakhstan’s state-owned Kazatomprom) has coincided with growing global demand supporting prices while gold prices were firmer as investors anticipate the start on easing cycle starting as early as 1H24 in the US,” analysts said.

It hit the top spot in a strong week for the ASX, which hit all-time highs last week.

Records were broken on Wednesday afternoon, with the benchmark S&P/ASX200 index rising to 7,638.8. The bull run continued through the week, with the index closing out at 7.699.40 on Friday afternoon.

That rise followed news that inflation was moderating in Australia, giving economists confidence that rate cuts could come sooner than later.

Prophecy International also landed in the top five Winners of last week, rising by 18.87 per cent. Its rise was on the back of a first-half business update that saw the company post record revenue, driven by new customer wins for its IT services.

Other Winners included Micro-X, Adrad Holdings and Whitebark Energy.

Mighty Kingdom was the week’s biggest Loser as shares fell 35.71 per cent over the week.

The video game company released a quarterly report last week, showing cash outflow for the December period was $133,000 – a major improvement from its previous quarterly outflow of $1.075 million.

The company also reported a 58 per cent year-on-year increase in revenue generated from games, with quarterly gaming revenue coming in at $1.6 million in the period.

Koonenberry Gold was another Loser, despite being encouraged by results from a drilling project at its Bellagio gold mining site in Victoria. As such, the firm said it expedited a high-impact follow-up drilling campaign which was completed in early December.

This morning, managing director Dan Power said in a statement to shareholders that the Phase II drilling study “confirmed widespread gold mineralisation and hydrothermal alteration over a significant area”.

“We are seeing a lot of “smoke”…which indicates we are on or near the right structure; we just need to find where the “fire” is,” Power said.

The company said it was “extremely encouraged by the progress at Bellagio”.

Neurizer, Petratherm and Iondrive rounded out the top five Losers for the week.

The full list of Winners and Losers for the week ending 2 February:

Data compiled by Baker Young Limited as of February 2.

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