Daily Brief Australia: Mayne Pharma, Iron Ore, ADX Energy Ltd, Canyon Resources and more

• As widely speculated, Cosette asserted to Mayne Pharma (MYX AU) on the 17th May a Material Adverse Change (MAC) has occurred.
• Mayne disagrees, and views the pre-requisites for a MAC, as defined in the SID, have not been established. 
• What now? The Scheme is not terminated. Both parties remain in consultation. If those talks are not satisfactory (say, a price reduction [my guess]), Cosette said it will walk. 

• China’s industrial output grew 6.1% YoY in April 2025, surpassing expectations but slowing from March’s 7.7% surge, as the economy sustained steady growth amid complex domestic and external challenges. 
• Retail sales growth slowed to 5.1% in April, missing expectations despite government stimulus. Cautious consumer sentiment persists amid economic challenges, subdued income growth, and concerns over U.S. tariffs.
• Easing U.S.-China tensions are boosting Chinese market confidence, driving up steel production and iron ore demand. With inventories thinning, spot buyers may bid aggressively, lifting prices in the near term.

• ADX has now matured 13 shallow gas prospects across the ADX-AT-I and ADX-AT-II licence areas in Austria.
• The play is proven, supported by historical discoveries within the basin.
• Nearby historical discoveries in the area have produced 220 bcf to date.

On 19 May, Canyon Resources announced that it has received an option exercise notice from its key shareholder Eagle Eye Asset Holdings (EEA). EEA will exercise 350m options, resulting in cash proceeds of A$24.5m for the company. Canyon will use the funds to further advance its Minim Martap bauxite project, in particular to finalise the definitive feasibility study (DFS) that is scheduled for completion in Q325.