Daily Special: Brightstar Resources, Constellation Resources, Avecho Biotechnology, Magmatic Resources

Australian shares rebounded strongly at midday, with the S&P/ASX 200 rising 1.8% to 8649.5 at 12:31pm AEST after recently touching a 20-day low. The broader market also strengthened, with the All Ordinaries up 1.7%, while the A-VIX volatility index fell more than 6%, signalling improving investor sentiment. Guzman y Gomez, James Hardie and IGO led gains on the benchmark index, while energy stocks including Woodside and Beach Energy remained weaker.

Gains came as investors reacted to weaker-than-expected Australian employment data, which showed employment fell by 18,600 positions in April and the unemployment rate rose to 4.5%. The softer labour market figures prompted investors to reassess the outlook for further interest rate hikes, despite inflation remaining elevated and oil prices staying high amid Middle East tensions. Markets had been expecting a 15,000 increase in employment and an unchanged unemployment rate of 4.3%, with traders continuing to monitor the Reserve Bank’s policy outlook following three rate hikes already this year.

Brightstar Resources (ASX: BTR) said construction activities at its Goldfields Project in Western Australia are set to commence, with the company targeting a Final Investment Decision during May 2026 and first gold production in the June quarter of 2027. Approvals and engineering work for the Laverton processing plant remain on schedule, with production targeted at around 75,000 ounces per annum over six years. The company has also advanced power supply, water infrastructure and drilling activities at the Lord Byron deposit as it works toward construction and mine development.

Constellation Resources (ASX: CR1) reported high concentrations of methane and helium from a shallow drillhole within its newly awarded SPA-0143 area in Western Australia’s Edmund-Collier Basin. The company said gas samples collected over an eight-month period returned methane concentrations of up to 97% and helium grades of up to 0.24%, with ongoing venting from the drillhole suggesting a potentially active basin-scale gas system. Constellation plans further gas sampling and isotope studies as it advances exploration across its large natural hydrogen and helium acreage position.

Avecho Biotechnology (ASX: AVE) completed the treatment phase for the interim analysis cohort in its pivotal Phase III insomnia trial for its TPM-enhanced cannabidiol capsule. The company said 244 participants have now completed treatment, with interim results expected in late June 2026. Avecho said the analysis will provide the first indication of the product’s efficacy profile and support ongoing licensing discussions following its existing commercial agreement with Sandoz for the Australian market.

Magmatic Resources (ASX: MAG) commenced Phase 3 drilling at its Weebo Gold Project in Western Australia’s Eastern Goldfields, with a combined 6,745 metre air core and reverse circulation program underway. The drilling campaign is targeting extensions to previously identified gold anomalies and bedrock mineralisation across several prospects, including Ockerburry, Scone Stone and Wheel of Fortune. The company said earlier drilling results and structural targets continue to support the potential for a significant gold discovery at the project.