ASX suffers fresh losses as copper stocks slump
The Australian Securities Exchange (ASX) index fell around 1.2% by lunchtime Thursday, dragged down by a sharp drop in copper prices and rising fears of further interest rate hikes. The downturn came as oil prices surged, with Brent crude jumping 7% overnight to $108 amid escalating tensions between Iran and the U.S., while bond yields spiked on expectations the Federal Reserve and Reserve Bank of Australia could tighten policy again. Bond traders are gearing up for potential rate hikes to return.
Copper was the worst-performing commodity, plunging roughly 5% after reports the White House was reconsidering tariffs on refined copper imports. The shift sent shockwaves through mining stocks, with major producers leading the decline. BHP fell nearly 5%, Rio Tinto dropped 4%, and Fortescue Metals Group lost more than 2%. Smaller copper-focused miners fared worse: Sandfire Resources tumbled 7%, while Capstone Copper shed nearly 9%. The tariff uncertainty comes after the U.S. had previously signaled stricter import controls, which would have increased costs for industries reliant on copper, from electrical wiring to automotive manufacturing.
Gold miners also took a hit as bond yields rose, pushing down the price of gold by almost 2%. Northern Star Resources and Evolution Mining each fell around 4%. The broader sell-off in commodities reflected growing concerns about inflation and central bank responses.
Copper tariffs trigger mining sector sell-off
The market reaction to copper tariff reports showed how sensitive mining stocks are to policy shifts. The White House’s reported hesitation—coming after earlier signals of stricter tariffs—highlighted the uncertainty weighing on the sector. Analysts had previously noted that higher copper costs would ripple through industries relying on the metal, from construction to electronics.
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Meanwhile, GQG Partners dropped 6% after its funds under management (FUM) fell another $7.2 billion in August, with clients withdrawing $4.3 billion and poor performance shaving off $2.9 billion. The total FUM decline for the year now stands at $14.7 billion.
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Alkane Resources fell more than 3%, though its underlying mining operations showed strength. Gold reserves at its Tomingley and Björkdal projects grew despite heavy exploration spending, with Tomingley up 3.2% to 641,000 ounces and Björkdal rising 3.7% to 563,000 ounces. CEO Nic Earner sold shares worth about $3.89 million.
Exploration drills toward new discoveries
On the bright side, some smaller explorers reported progress. Alchemy Resources began reverse circulation (RC) drilling at its Yellow Mountain and Overflow projects in New South Wales, targeting extensions of known gold and copper mineralization. Initial results at Yellow Mountain included a 113-meter zone grading 1.17% copper equivalent (CuEq), while Overflow drilling aimed to expand its 342,000-ounce gold equivalent (AuEq) resource.
The company’s drilling program is designed to test multiple targets, including areas where previous exploration had identified anomalous copper and gold mineralization. BPM Minerals also secured approval to drill its Bonnie & Clyde project in Western Australia, with a 10,000-meter program set to begin soon. The project’s gold-in-soil anomaly spans over 6 kilometers, with comparisons drawn to the Tropicana gold deposit, one of Australia’s largest. BPM’s drilling campaign will focus on validating the anomaly’s potential.
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In contrast, Jupiter Mines announced its managing director, Brad Rogers, would step down in November to take another CEO role. Matthew Jarvis, who joined the company in 2022 and has 25 years of mining experience, including 16 years in manganese, will serve as interim CEO.
Elsewhere, Ariana Resources shipped metallurgical samples from its Dokwe gold project in Zimbabwe for feasibility testing in China, where specialized labs can provide independent validation of the ore’s processing characteristics. The project’s 1.6-million-ounce resource has drawn interest from international investors seeking high-margin gold assets. Auravelle Metals expanded exploration in South Australia’s emerging gold province, an area where multiple explorers are advancing projects amid rising commodity prices and improved geopolitical stability.
Challenger Gold outlined a development plan for its Hualilán project, targeting commercial production by early 2029, with the roadmap built on recent pre-feasibility studies that confirmed robust ore grades and infrastructure accessibility. Unity Metals identified new gold drill targets in Cambodia using airborne magnetics, a technique that helps pinpoint subsurface anomalies by measuring variations in the Earth’s magnetic field. The company’s O’Phlay project has gained attention for its potential to host high-grade gold deposits in a region with growing exploration activity.
