ASX Runners of the Week: Recharge Metals, Cosmos & King River Lead Market Surge
This week, the ASX has continued its bullish momentum with two consecutive weeks of gains, largely propelled by major miners, banking sectors, and robust Wall Street earnings reports. The market's resurgence comes after a period of subdued activity, highlighting renewed investor confidence in key industries.
Market Overview and Global Influences
BHP Group has achieved a significant milestone, with its copper division surpassing iron ore as the primary revenue generator for the first time, contributing 51% of earnings and bolstering a half-year profit of US$5.6 billion (A$7.9 billion). Meanwhile, gold producers are thriving, exemplified by South African giant Goldfields, which is reportedly targeting Western Australia's consolidating gold sector with a substantial cash reserve of $2.5 billion.
In the United States, the economy has demonstrated unexpected strength, with January employment figures exceeding forecasts. The White House has touted this as a victory over inflationary pressures, while Federal Reserve minutes indicate a prolonged pause on interest rate cuts, awaiting clearer signs of easing price trends. Economic growth closed last year at a brisk 3.7%, supported by increased factory output and sustained business and consumer activity.
However, geopolitical tensions pose a potential dampener, as ongoing conflicts between the US and Iran threaten to escalate, particularly in the Strait of Hormuz—a critical channel handling 20-25% of global oil and gas trade. Analysts warn that any military confrontation could spike crude oil prices to $100 per barrel, with oil already rising 2% this week in anticipation.
Top Performers: Gold and Lithium Juniors Shine
The ASX runners this week were dominated by gold and lithium-focused junior companies, many of which showcased new projects and discoveries at the RIU explorers conference in Fremantle, Western Australia. In a dramatic finish, Recharge Metals emerged as the standout performer, securing the top spot with a late project acquisition.
Recharge Metals Ltd (ASX: REC)
Up 123% (2.2c – 4.9c)
Recharge Metals has surged to become the Bulls N' Bears Runner of the Week, following its acquisition of the Sunset Well gold project in Western Australia's prolific Leonora district. The tenement spans 181 square kilometres, positioned 10km east of Leonora and within 100km of seven operational gold processing facilities, offering excellent infrastructure access.
The project includes the Prospero deposit, which hosts a shallow resource of 2.87 million tonnes at one gram per tonne gold, equating to 94,500 ounces. Despite its prime location, exploration has been limited since the 1990s, with the Prospero Shear Zone extending 10 kilometres and presenting numerous untested drill targets. Near-surface results have been promising, such as 36m at 2.73 g/t gold from 32m, while deeper potential remains largely unexplored below 100m.
To fund extensive drilling programs, Recharge has raised $3.75 million through a placement and plans a $2 million pro rata rights issue, positioning the company for significant growth in a region surrounded by industry leaders.
Cosmos Exploration Ltd (ASX: C1X)
Up 105% (8.1c – 16.5c)
Cosmos Exploration claims second place this week, driven by its subsidiary EAU Lithium's partnership with Bolivia's state-owned Yacimientos de Litio Bolivianos (YLB) to develop industrial lithium production facilities. The collaboration leverages Vulcan Energy's VULSORB direct lithium extraction technology, exclusively licensed to EAU for South America.
This technology aims to unlock Bolivia's vast lithium resources, estimated at 23 million metric tonnes across salt flats like Uyuni, Coipasa, Empexa, and Pastos Grandes, representing approximately 22% of global known supply. With lithium prices rebounding, the Bolivian government is eager to capitalize on these assets, offering substantial economic opportunities.
Cosmos secured an option to fully acquire EAU in December, and its shares have more than doubled this week, benefiting from both strategic positioning in South America's Lithium Triangle and favorable market conditions.
King River Resources Ltd (ASX: KRR)
Up 56% (2.3c – 3.6c)
King River Resources rounds out the top runners, revitalizing its Mindoolah gold project 70km northwest of Cue in Western Australia's Murchison belt, an area historically yielding over 35 million ounces of gold. Historic mining in the early 1900s produced an average grade of 19.02 g/t gold for more than 5,700 ounces, but operations were halted at shallow depths due to water and technical challenges.
The project covers 100 square kilometres of prospective greenstone terrain, largely overlooked and under-explored with modern techniques. Management believes the source of high-grade reefs remains untested by contemporary geophysics or systematic drilling, offering ample potential for discovery. Historic drilling results, such as 4m at 9.3g/t gold from 33m, suggest extensions beyond old workings.
This addition complements King River's existing gold and copper projects in the Kimberley and Northern Territory, positioning Mindoolah as a revival play with modern exploration tools and strong gold prices driving renewed interest.
For companies listed on the ASX with noteworthy developments, contact matt.birney@wanews.com.au. Stay updated with the latest news by signing up for emails from thewest.com.au.
