The Kalium Lakes Ltd (ASX: KLL) share price is soaring today, up 14% in early afternoon trade.

Below, we take a look at this morning’s investor presentation that appears to be driving interest in the ASX resource share.

What di Kalium report today?

Kalium Lakes’ share price is leaping higher after the company reported it’s on the brink of becoming a long life, low cost, high-grade SOP (Sulphate of Potash) producer at its Beyondie SOP Project in Western Australia.

SOP is an agricultural fertiliser and is the preferred form of potassium to use on high-salinity soils. Currently, there is no SOP production in Australia.

According to Kalium’s presentation, construction at its Beyondie project is almost finished and within budget. Kalium is forecasting its first SOP production in September.

The company said it has significant inventories of some 90,000 tonnes of potassium salts produced and waiting on run of mine (ROM) stockpiles, ready for the production start-up. That’s equivalent to approximately 9,000 tonnes of SOP production.

The statement on its Beyondie SOP production expansion plans is also likely stoking the Kalium Lakes share price today. Kalium said it has completed a feasibility study on the immediate expansion from 90 kilo-tonnes per annum (ktpa) to 120 ktpa, a level it can reach by the fourth quarter of 2022.

The study revealed the company can deliver the additional 30 ktpa for a capital cost of $45 million. That works out to $1,513/tonne compared to the $3,113/tonne for the initial 90 ktpa production capacity.

The gas supply infrastructure in place is sufficient to supply the expanded production, while “only a small upgrade to the power station” will be needed to increase production to 120ktpa of SOP.

Kalium also cited a “buoyant SOP market”, forecasting year-on-year price increases. It estimates Beyondie to have a 50-year mine life, with significant expansion opportunities ahead.

Kalium Lakes share price snapshot

Kalium Lakes’ share price has gained 37% over the past 12 months, compared to a gain of 23% on the All Ordinaries Index (ASX: XAO).

Year-to-date, Kalium shares are up by more than 5%.

The post Why Kalium Lakes (ASX:KLL) share price is rocketing 14% today appeared first on The Motley Fool Australia.

More reading

• What’s happening with the Kalium Lakes (ASX:KLL) share price?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a positive note. In afternoon trade, the benchmark index is up 0.35% to 7,487.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Ampol Ltd (ASX: ALD)

The Ampol share price is down 4.5% to $26.25. This follows the release of the fuel retailer’s half year results. Although Ampol achieved strong first half profit growth, management’s outlook may have spooked investors. It warned that lockdowns were impacting fuel and convenience sales in July and August. Also failing to support the Ampol share price was news that it has made a non-binding indicative proposal to acquire Z Energy Ltd (ASX: ZEL) for NZ$3.78 cash per share. This values Z Energy’s equity at NZ$2 billion.

NIB Holdings Limited (ASX: NHF)

The NIB share price has fallen 10% to $7.19. This follows the release of full year results that fell short of the market’s expectations. In FY 2021, NIB reported a 2.9% increase in revenue to $2.6 billion and an 84.5% lift in net profit after tax to $160.5 million. A note out of Goldman Sachs reveals that it was expecting the private health insurer to report a 92.2% increase in net profit after tax to $171.4 million.

Redbubble Ltd (ASX: RBL)

The Redbubble share price has tumbled 8.5% to $3.85. This is despite there being no news out of the ecommerce company today. However, with its shares rocketing higher last week, this decline could have been driven by profit taking. After all, the Redbubble share price is still up 22% over the last five days after today’s decline.

Sonic Healthcare Limited (ASX: SHL)

The Sonic share price is down 3% to $41.64 after its full year results fell short of the market’s lofty expectations. For the 12 months ended 30 June, Sonic Healthcare reported a 28% increase in revenue to $8.8 billion and a 149% lift in net profit to $1.3 billion. However, as strong as this result was, it was lower than Goldman Sachs’ estimates for revenue of $9,352 million and net profit of $1,327 million.

The post Why Ampol, NIB, Redbubble, & Sonic shares are dropping appeared first on The Motley Fool Australia.

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• Z Energy (ASX:ZEL) share price surges 15% on acquisition news
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• NIB (ASX:NHF) share price sinks 11% despite profit surge
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended NIB Holdings Limited and Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Z Energy Ltd (ASX: ZEL) share price is soaring after the company received an acquisition offer from Ampol Ltd (ASX: ALD).

According to Z Energy, Ampol has proposed to pay $3.62 (converted from New Zealand dollars at the current exchange rate) for each share in Z Energy, valuing the business at $1.88 billion.

Right now, the Z Energy share price is $3.32, 14.88% higher than its previous close. However, earlier today, the Z Energy share price reached $3.40 – a new 52-week high and 17.6% higher than Friday’s close.

Let’s take a closer look at today’s news from the New Zealand-based business-to-business fuel supplier.

Acquisition proposal

Z Energy’s shares are gaining on the back of a new acquisition offer.

According to the company, Ampol’s offer of $3.62 per share represents a 22% premium on Z Energy’s shares’ closing price on 12 August and a 26% premium on their 30-day volume-weighted average price.

Ampol’s bid is said to be the fourth the company has made for Z Energy. Initially, it offered Z Energy $3.21 per share.

Z Energy’s board had previously determined Ampol’s bid hadn’t sufficiently valued Z Energy. However, Ampol’s $3.62 bid will pass to a four-week period of exclusivity, within which Ampol will properly develop its proposal.

In discussing the acquisition, Z Energy and Ampol are said to be considering including a partial Ampol share consideration or a secondary listing of Ampol on the New Zealand Stock Exchange.

Additionally, because the bid involves regulatory approvals, if agreed to, it would restrict the payment of dividends. To accommodate delays, Ampol proposed Z Energy pay its shareholders a 5.3-cent dividend per calendar day beyond 31 March 2022 in which the scheme has not financially closed. Though, the dividends will be capped at NZ 9.8-cents per share.

While Z Energy’s shares have been boosted by the potential acquisition, those of Ampol are floundering.

Right now, Ampol’s shares are trading for 4.49% less than they were at Friday’s close.

Ampol announced the acquisition proposal alongside its half-year results this morning.

Z Energy share price snapshot

Including today’s boost, the Z Energy’s shares have gained 11.8% year to date. They are also 33% higher than they were this time last year.

At its current share price, Z Energy has a market capitalisation of around $1.72 billion. It has approximately 520 million shares outstanding.

The post Z Energy (ASX:ZEL) share price surges 15% on acquisition news appeared first on The Motley Fool Australia.

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• Ampol (ASX:ALD) share price sinks on half year results and acquisition news
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Last year, the Kogan.com Ltd (ASX: KGN) share price was a bellwether of Australia’s consumption habits throughout the pandemic.

Leading into 2020’s reporting season, shares in the online retailer had bolted more than 167% for the year.

Let’s take a look at how the Kogan share price responded last reporting season.

Kogan share price catapults after FY20 results

The Kogan share price actually dropped lower after the company released its results for FY20.

However, as investors digested the company’s results, shares in the online retailer bolted to record highs in the following days.

For the 12 months ending 30 June 2020, Kogan reported blockbuster growth as consumers flocked online.

Highlights from the company’s performance in FY20 included;

• Gross sales of  $768.9 million, up 39.3% on the prior corresponding period (pcp)
• Reveune of $497.9 million, up 13.5% year on year
• 35.7% increase in its active customer base to 2,183,000 
• Gross profit of $126.5 million, a up 39.6% on pcp
• 57.6% increase in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $49.7 million
• Net profit after tax of $26.8 million, up 55.9% on pcp.  

Kogan shared the wealth with investors, declaring a fully franked final dividend of 13.5 cents per share.

Kogan’s management highlighted the changing nature of retail consumption and noted the company planned on continuing investment in increasing its active customer base.

Snapshot of shares in Kogan

Leading into this year’s reporting season, the Kogan share price has bolted more than 24% since the start of August.

However, despite its stellar performance this month, shares in the online retailer have struggled this year.

In fact, Kogan shares have nearly halved since surging to all-time highs of around $25 per in October last year.

There have been several catalysts that are likely to have caused the Kogan share price to plunge in 2021.

The initial catalyst can be traced back to late January when the company released a business update for the first half of FY21.

In the update, Kogan flagged a slower rate of growth than expected.

The second catalyst prompting investors to sell their Kogan shares was another update from the company in late May.

In that update, Kogan informed shareholders that it expected to report adjusted EBITDA of $58 million to $63 million in FY 2021.

In comparison, market consensus estimated Kogan’s EBITDA for FY21 to be around $70 million.

Investors will be keeping a keen eye on the Kogan share price with the eCommerce company scheduled to report its results for the full year tomorrow.

The post Here’s how the Kogan (ASX:KGN) share price responded last reporting season appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram owns shares of Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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