Daily Special: Ariana Resources, Recce Pharmaceuticals, International Graphite

Australian shares recovered from early losses at midday, with the S&P/ASX 200 rising 0.15% to 8,670.40 at 12:41pm AEST after softer-than-expected April inflation data strengthened expectations the Reserve Bank will keep rates on hold next month. Headline inflation slowed to 4.2% from market expectations of 4.4%, while money markets reduced the probability of a June rate hike to just 6%. The Australian dollar edged lower following the data release as investors reassessed the interest rate outlook.Technology stocks led gains as lower rate expectations boosted sentiment toward growth sectors, with Megaport, NextDC and WiseTech Global all higher. Materials also strengthened as copper prices remained elevated and aluminium hit a four-year high, lifting BHP, South32 and Rio Tinto. Financials lagged the broader market, with the major banks weaker and Westpac falling after being ordered to pay $26 million in civil penalties linked to customer hardship cases. The ASX operator also extended recent losses after analysts downgraded the stock following increased cost guidance, while energy stocks were mixed as Brent crude slipped below US$99 a barrel.

In other company news, 

Ariana Resources (ASX: AA2) upgraded the pre-feasibility study for its Dokwe Gold Project in Zimbabwe, increasing Ore Reserves by 42% to 1.13 million ounces and lifting the Mineral Resource to 1.6 million ounces. The revised study outlined a 20-year mine life producing about 80,000 ounces annually, with a post-tax NPV10 of US$740 million and payback expected within one year of commissioning. The company said optimisation work supported a larger processing rate and improved early-stage production economics. Ariana remains debt free with about A$53 million in cash and investments as it advances toward a Definitive Feasibility Study targeted for 2027.

Recce Pharmaceuticals (ASX: RCE) signed a non-binding term sheet with a leading Middle Eastern pharmaceutical company for a proposed 10-year licensing agreement covering its R327 diabetic foot infection treatment across the Middle East and North Africa. The proposed deal includes upfront and milestone payments of up to US$3.5 million plus future royalties and revenue sharing. The agreement would cover Saudi Arabia, GCC countries, Egypt, Algeria and Morocco using data from Recce’s ongoing Phase 3 trial in Indonesia. Recce said the MENA region represented a significant opportunity given high diabetes prevalence across the region.

International Graphite (ASX: IG6) entered a binding joint venture with Italian chemical producer Alkeemia to develop a graphite processing hub in Porto Marghera, Italy. The project will initially target production of 10,000 tonnes per year, expanding to about 15,000 tonnes annually within three years. Construction is planned to begin in late 2026, with first production targeted for the second half of 2027. The companies said the project would leverage existing industrial infrastructure to reduce costs and accelerate development of Europe’s critical minerals supply chain.sts and accelerate the path to production.