Market Close: Government backing boosting Gina Rinehart’s REE/lithium interests

The ASX200 has closed down 0.2 per cent this afternoon.

Sector performances were established early in the session and didn’t really budge too much all day.

Materials was the strongest sector adding 1.85 per cent, while Financials dropped nearly 1.9 per cent as the big banks were hit by Macquarie-issued share price downgrades.

In the Green

It’s certainly been a fantastic week for Gina Rinehart’s interests so far.

A company she’s backed, Arafura Rare Earths (ASX:ARU) was the day’s standout performer, soaring more than 75 per cent.

That was thanks to conditional approval from the Commonwealth Government for more than A$800 million (US$533 million) in debt and grant financing for its Nolans REE project in the Northern Territory. 

The approval is a massive vote of confidence for the project, which has already built a camp and completed other early works. It’s focussed on offtake agreements with South Korean companies including Hyundai and Kia.

Arafura closed at 26 cents.

A separate A$550 million was pledged yesterday to another company Gina Rinehart holds a solid stake in, Liontown Resources (ASX:LTR). That financing package will support development of the company’s Kathleen Valley lithium interests.

While Liontown traded down more than 2 per cent today, it’s still up about 9.5 per cent for the week – so far!

Copper and precious metals-focussed 29Metals (ASX:29M) shot up more than 18 per cent. Why? Well, that’s interesting, because there’s been no ASX Announcement from the company today.

It closed at 48.5 cents.

And internet service provider, Superloop (ASX: SLC) gained about 25 per cent after securing a six-year contract to provide wholesale internet services to Origin Energy (ASX:ORG) and its subsidiaries.

Origin’s 130,000 broadband customer accounts will move onto Superloop’s network next financial year, in a deal that’s set to boost Superloop’s annual EBITDA by more than $19 million.

Superloop closed at $1.31.

In the Red

So Superloop’s success came at Aussie Broadband’s loss …and Aussie Broadband (ASX:ABB) took an 18 per cent dive due to the termination of its White Label Wholesale Agreement with Origin Energy (ASX:ORG) Retail.

The deal’s been worth $14 million in EBITDA this financial year.

Aussie Broadband closed at $3.55.

And, as I mentioned earlier, the big four all took a hit after Macquarie downgrades today:

ANZ Group Holdings (ASX:ANZ) and Westpac Banking Corporation (ASX:WBC) shed 3.7 per cent; National Australia Bank (ASX:NAB) lost 2.7 per cent and Commonwealth Bank of Australia (ASX:CBA) was down 1.1 per cent to close at $116.22.

These falls of course follow the banks extraordinary highs of recent weeks.

Bendigo and Adelaide Bank (ASX:BEN) also slid 1.5 per cent from 12 month highs to close just below $9.80 today ($9.79).