0055 GMT - Liontown Resources shares are changing hands at around 6% below Albemarle's nonbinding bid price of A$3.00/share, and Morgans thinks this is because the market is making allowances for a push to lower the offer following due diligence. "We note though that Albemarle has been motivated to pursue the company for some time and that it is likely already comfortable with the outstanding construction and commissioning risks of the Kathleen Valley project," analyst Max Vickerson says in a note. Morgans believes the deal is likely to proceed and raises its price target by 20% to A$3.00. Liontown is down 1.4% at A$2.81. (david.winning@wsj.com; @dwinningWSJ)

0035 GMT - Albemarle looks to have a clear run at acquiring Liontown Resources, according to Macquarie, which thinks the A$6.6 billion offer price is unlikely to be trumped. Liontown has agreed to let Albemarle carry out due diligence to firm up a binding bid of A$3.00/share, which the U.S. company has indicated is its best and final offer after its earlier approaches were rebuffed. Macquarie says Albemarle's offer implies a long-term spodumene price of US$1,940/ton. The bank downgrades Liontown to neutral, from outperform, and cuts its price target by 3% to A$3.00 to bring it in line with the offer price. Liontown is down 1.4% at A$2.81. (david.winning@wsj.com; @dwinningWSJ)

2327 GMT - Mineral Resources's rationale for scooping up lithium-equity stakes in Western Australia is becoming clearer after the miner said it intends to buy the Bald Hill lithium mine from receivers, says Citi analyst Kate McCutcheon. That operation could serve as a regional processing hub, she says in a note. "We suspect an acquisition will take time and be messy; there's court orders, contracts, debt and lots of parties involved," says McCutcheon. She reckons Mineral Resources could "eventually get a bargain" for less than A$1 billion, although questions how the miner intends to fund the project without raising capital. Mineral Resources last traded at A$73.90/share. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2250 GMT - Metro Mining shipped record volumes of bauxite in 1H, and Shaw & Partners thinks 2H is likely to be even stronger. "Our sales forecast of 4.55 million tons now looks very conservative with Metro likely to reach the upper end of its 4.5 million-5.0 million tons guidance range," analyst Andrew Hines says in a note. At the same time, the global bauxite market has had a strong start to 2023, driven by strong Chinese demand. Shaw highlights that Chinese imports in 1H reached 72.5 million tons and are annualizing 12% growth on the record 126 million tons of imports in 2022. "As a result of the market tightness, bauxite prices are rising and Metro is reporting Free-on-Board revenue of A$41.1/ton in 2Q23, up from A$31.1/ton in 4Q22 and A$25.5/ton in 2Q22," Shaw says. (david.winning@wsj.com; @dwinningWSJ)

2243 GMT - QBE is Citi's clear top pick among Australian general insurers on a 12-month view. "We believe crop, rate earn through and lower expenses should all contribute to helping it achieve its target of an improved 2H23 Combined Operating Ratio performance consistent with its FY COR guidance of 94.5%, although 2H weather is a risk," analyst Nigel Pittaway says in a note. The bank also anticipates strong earnings growth beyond FY 2023, especially if QBE can improve returns from its North America business. QBE ended Monday at A$14.98. (david.winning@wsj.com; @dwinningWSJ)

2235 GMT - While Suncorp's 1H guidance for 10% underlying margins looks a little soft, Citi is broadly upbeat. "We should see margin expansion thereafter as strong rate rises earn through and inflation potentially recedes, with Suncorp expecting motor inflation to moderate around the start of 2024," analyst Nigel Pittaway says in a note. Suncorp's top line is also beginning to show real momentum, and this suggests the general insurer was potentially being conservative when guiding for 10% growth in gross written premium in FY 2024, Citi says. "We expect Net Earned Premium growth to outpace Gross Written Premium growth in the next few years," Citi says. Also, while the planned sale of Suncorp's banking unit to ANZ delayed, Citi remains optimistic that the Australian Competition Tribunal will ultimately approve it. (david.winning@wsj.com; @dwinningWSJ)

2223 GMT - Momentum in the uranium market looks set to remain strong through 2H, which will provide ongoing support for Australia-listed miners and explorers, Jefferies says. "This week's World Nuclear Symposium is likely to inject further optimism into the market, while also potentially triggering contract volumes, adding further support to the positive price environment," analyst Chris Drew says in a note. The global supply outlook is tighter after Cameco cut its annual production guidance due to issues at its Cigar Lake mine and Key Lake mill, while a coup in Niger is likely to impact the schedule of its Dasa project. Jefferies favors Paladin Energy, Boss Energy and Deep Yellow among locally listed equities. (david.winning@wsj.com; @dwinningWSJ)

2215 GMT - The economics of Chalice Mining's Gonneville base-metals deposit in Western Australia look unattractive to Jefferies following the release of a scoping study. In a note, analyst Mitch Ryan says this isn't yet fully factored into Chalice's share price and downgrades Chalice's stock to underperform, from hold, as a result. "This downside risk outweighs the risk to the upside that positive drill results, or M&A, may have on the stock, in our view," Jefferies says. "The scoping study has outlined pre-production capex of A$1.6 billion-A$2.3 billion (ex-study costs and cost inflation), which we see as prohibitive for funding options." A strategic project sales process would be a solution for funding into development, and provide external valuation validation, Jefferies says. (david.winning@wsj.com; @dwinningWSJ)

0805 GMT - Resolute Mining's expansion of measured and indicated resources for its Syama North deposit in Mali once again shows the prospectivity of the Syama ore body, Berenberg analysts Richard Hatch and William Dalby write in a research note. "Management has turned this asset around and we expect ongoing drilling success to both underpin plans to take production to a sustainable 250,000 ounces per year, and potentially more, and maintain it at this level," the analysts say. Berenberg keeps a buy rating and a 30-pence price target on the London-listed Africa-focused miner. (christian.moess@wsj.com)

(END) Dow Jones Newswires