Aussie Gold Miner a Takeover Target 

What made the news today?

• Furniture retailer sinks despite reporting 70% profit growth.

• Aussie gold miner has the eye of a US giant.

• ASX reporting season rolls on. ARB Corp and Magellan provide updates.

• Breast Cancer diagnosis game changer?

• Australian BNPL company goes out of business.

The three-day winning streak on the ASX got broken today after a stronger than expected jobs report on Friday struck fears on the market that the US Federal reserve may continue to raise rates longer than expected. The ASX200 ended the day lower, falling 19.10 points, or 0.25%, to finish at 7,539.00.  The RBA meets on Tuesday where it is is expected to raise the cash rate by a further 25 basis points.

There were only four sectors which finished the day higher, with Energy the best performing sector, increasing for the second session in a row after a six-day losing run, gaining +0.92%.  While Real Estate fell the most on the day, losing 1.94% of in value.

Lake Resources and Sayona Mining both of which saw their share prices fall by 5.77% and 6.21% respectively, were the worst performing stocks in this index.

Quick Singles

• Beach Energy Ltd (ASX: BPT) share price increased by 3.7% to $1.54 following an update on the Waitsia Stage 2 project where it told investors its expecting first gas by the end of 2023.

• ARB Corp Ltd (ASX: ARB) share price was down 0.2% to $33.32 following a market update where it said revenue was down 5.1% in H1 FY23 to $340.9m. ARB did say that Q2 however, was higher than last year.

• Magellan Financial Group Ltd (ASX: MFG) share price traded flat today following the release of its funds under management (FUM) for January which was up $0.9b from December

• Dexus Convenience Retail (ASX: DXC) share price fell by 2.7% to $2.91 on the back of the release of its HY23 results

• Openpay Group (ASX:OPY) announced that they will be going into receivership and have appointed Mcrath Nicol to stop business and repay creditors

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Top Story

Newmont Makes $24.4 Billion Bid for Newcrest Mining

Newcrest Mining Ltd (ASX: NCM) has seen its share prices increase by 9.3% to $24.53 following a takeover approach by Newmont. The US-based company has made a non-binding and enhanced indicative proposal to acquire Newcrest for 0.380 Newmont shares per Newcrest share, equivalent to an offer of $27.40 per share based on current exchange rates. This latest offer, which is close to what Newcrest has been seeking, is a 22% premium over the closing share price of Newcrest on Friday.

The Newcrest board is now considering the indicative proposal with the help of financial and legal advisors, but has not yet accepted it. Newmont's bid, which would give the company control of four of Australia and PNG's top gold-producing mines, plus some of the region's best undeveloped growth options, faces pushback from investors hoping for an auction for the local giant.

Allan Gray Chief Investment Officer Simon Mawhinney has voiced concerns about the relative value on offer, saying, "I think a merger of these companies might make sense, but I am not convinced the relative value on offer strikes the right balance."

If the transaction progresses to a binding sale, it will need to be approved by the federal government's foreign investment review board (FIRB). Newcrest Chairman Peter Tomsett has promised to give the proposal due consideration.

Movers and Shakers

✅Biggest Winners 

Newcrest Mining Ltd. (ASX: NCM) share price increased by 9.3% to $24.53 after reports that Newmont has approached the gold miner about a takeover. A conditional and non-binding indicative bid has been made by the US mining behemoth to purchase Newcrest for 0.380 Newmont shares for each Newcrest share. This equates to a share price of $27.40, which is a 22% premium to the closing price of Newcrest stock on Friday. The offer is being considered by the Newcrest board.

Patriot Battery Metals Inc (ASX: PMT) share price increased by 9.6% to $1.82. This morning, this lithium explorer disclosed promising drill findings from the Corvette Property in the James Bay region of Quebec, which is completely owned by the company. Patriot claimed that the first eight drill holes intersected varying widths of spodumene pegmatite, extending the strike length of the CV5 Pegmatite body eastward by 400 meters.

❌ Biggest Losers 

Nick Scali Limited (ASX: NCK) share price fell more than 13% to $10.8. This comes after the furniture retailer's half-year results were announced this morning. Although management was unable to give any guidance for the entire year, Nick Scali claimed a 70% increase in net profit after tax to $60.6 million. 

Predictive Discovery Ltd (ASX: PDI) share price decreased by 10.5% to $0.17. This follows the announcement that 63% of the Open Pit Mineral Resource tonnage and 50% of the contained gold have been upgraded to Indicated. This is the consequence of a major gain in the geological understanding of the mineralisation and the additional drilling that has been conducted. Indicated Mineral Resource is located in the top 250m of the optimal resource pit shell, where 80m by 40m holes have been drilled.

Small-Cap of the Day

MagSense Diagnostic Technology Confirmed a Game-Changer in Breast Cancer Diagnosis

Imagion Biosystems (ASX: IBX) has seen a significant increase in its share price, with a 18.2% rise, following an independent evaluation of its MagSense diagnostic technology for breast cancer patients. The evaluation, conducted by a panel of specialist breast cancer radiologists, confirmed previously announced positive findings for the company's technology.

According to the company, the radiologists confirmed that the MagSense HER2 imaging agent induces a shift in image contrast, and that the contrast in nodes highly suspicious for tumor is distinct from the MR image contrast observed in non-involved nodes. This makes it easier for doctors to detect breast cancer in its early stages, providing a better prognosis for patients.

Bob Proulx, CEO of Imagion Biosystems, stated that the results of the independent review are "truly great news." He added that the technology simplifies market entry by reducing the need for new machinery, thereby removing a substantial amount of future technical risk.

The confirmation of the MagSense technology as a game-changer in breast cancer diagnosis has sent ripples of excitement through the medical and investing communities. With its simplicity and effectiveness, MagSense has the potential to revolutionize the way breast cancer is diagnosed and treated.

Outlook

7th February 

• AU Trade Balnce

• AU RBA Cash Rate (est. 3.35%)

10th February 

• US Initial Job Claims (est. 194k)

That's it from the team at ASX-News today. We hope you enjoyed our EOD wrap-up. Good night and happy investing!