The White Rock Minerals Ltd (ASX: WRM) share price was drowning in a sea of red today, reaching a 52-week low after the company announced an $11 million capital raise.

At market close, the White Rock Minerals share price was down 22.58%, trading at 24 cents.

White Rock Minerals is a mineral explorer going for gold at the Woods Point Gold Project in Victoria.

What is White Rock Minerals up to?

In its release today, the company advised it planned to raise $11.3 million before costs via a $2.25 million share placement and $9.1 million entitlement offer.

Capital raises can be a catalyst for a share price plunge (akin to today’s performance) due to share dilution. Indeed, the company said in its release the share offer represented a 23% discount on the trading price before the capital raise of 31 cents.

White Rock said eligible shareholders would also be offered a 1 for 4 pro-rata non-renounceable entitlement offer.

The money will be used for gold exploration at the Woods Point Gold Project. The company acquired this project via a merger with AuStar Gold in August 2021.

The exploration area of 660km is located in one of Victoria’s largest historic goldfields, 120km east of Melbourne.

Management commentary

White Rock managing director and CEO Matt Gill said:

This capital raise will see White Rock continue this aggressive exploration focus on the significant in-mine and regional exploration potential of the project.

The board is very appreciative of the support shown from current shareholders and the interest and support being shown from the new investors now joining the White Rock journey through this equity raising.

White Rock Minerals share price snapshot

White Rock Minerals share price has fallen 56.36% over the past 12 months and 59% in the year to date. The share price is currently trading at a 52-week low of 24 cents.

The company has a market capitalisation of about $34 million.

The post The White Rock Minerals (ASX:WRM) share price plunged 23% today appeared first on The Motley Fool Australia.

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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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One top broker thinks that the Pilbara Minerals Ltd (ASX: PLS) share price offers upside of around 20% over the next year.

Brokers project where they think a share price is going to be in a year from now with what’s called a price target.

Price target on the Pilbara Minerals share price

The brokers at Macquarie Group Ltd (ASX: MQG) currently rate Pilbara Minerals as a buy.

Macquarie’s price target on Pilbara is $2.80, around 20% higher than it is today.

The latest note from Macquarie referred to the announcement regarding restarting the Ngungaju Plant.

Ngungaju Plant

Near the end of November 2021, the lithium miner said that it has upsized its finance facility by US$20 million to US$130 million and increased the working capital facility by US$10 million to US$25 million. That means that total senior secured debt facilities increased by US$30 million to US$155 million.

Those additional funds will primarily be used to fund the staged restart of Ngungaju Plant, including the reimbursement of amounts already by the company.

Wet commissioning at the Ngungaju Plant, and first ore produced from the coarse production circuit, commenced on 7 October 2021, which is the first step of the re-commissioning of the operation.

First concentrate from the Ngungaju Processing Plant was delivered on 13 October 2021. The fines spodumene processing circuit is expected to commence production during the quarter for the three months to March 2022.

Management said the increased facility limit is another demonstration of the strength of the business, the quality of the asset and follows an “extraordinary year of growth and transformation”.

Strong lithium prices

Another thing that both the broker and the company itself is focused on, is the strong lithium price. In investor minds, the higher lithium price is helpful for the Pilbara Minerals share price.

On 26 October 2021, Pilbara announced the results of its third Battery Material Exchange (BMX) auction. It said that it was selling a cargo of 10,000 of dry metrics tonnes (dmt) with a target trade of 5.5% lithia, with a deferred delivery date of February 2022. There was “strong interest”, with 25 bids during the 45-minute auction window. It said it intends to accept the highest bid of US$2,350 per dry metric tonne.

Pilbara Minerals notes the continuing strong conditions in the global lithium market. Price reviews under existing off-take agreements have commenced in light of the stronger lithium prices.

Other broker ratings on the Pilbara Minerals share price

Other brokers are less optimistic about the business.

Citi is currently ‘neutral’ on the business with a price target of $2.20 – lower than where it is now.

Credit Suisse has a price target of just $2.05, with a sell rating, or ‘underperform’.

The post Here’s why this top broker is tipping 20% upside for the Pilbara (ASX:PLS) share price appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 Macquarie Group 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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Shares in QBE Insurance Group Ltd (ASX: QBE) kicked off the week with a slight fall today.

At the end of the session, the insurance company was down 1.4% to $11.84. Though, investors have watched as the QBE share price has floated between ~$11 and ~$12.50 since the beginning of August.

While the market hasn’t received any major announcements recently, investors might be watching on to see how the company tracks with its relatively new CEO at the helm.

Andrew Horton joined the company as its group CEO in September 2021. Shortly after, Horton shared what he thought were QBE’s greatest challenges that lay in front of him.

People maketh the company

The QBE share price might be up nearly 55% from its COVID-19 lows, but the company’s new CEO still foresees some big challenges ahead.

During an interview with Insurance Business, Horton suggested the biggest challenge would be getting the people and culture right. In fact, the former CEO of Beazley — a London-based insurance company — went as far as to say, “If we can get the people and culture bit right, then everything else is relatively straightforward.”

Horton explained that while this task might sound easy, it poses a very difficult mission when dealing with an organisation with over 11,500 people.

Horton stated:

It sounds very easy, but if it’s not natural to everybody, it’s going to be quite hard. That’s why I need to start with the executive group, being supportive of each other and thinking towards the enterprise, and then cascade that down to the organization. I think that will be the challenge.

The increased focus on people follows a high turnover in senior leadership. This is an aspect of the business that Horton hopes to address and bring some stability to.

Furthermore, from his experience at Beazley, Horton recognises that once the culture and people are in good order, external interactions also improve. The example given was better interactions with brokers and clients, which feed into the success of the overall company.

How have QBE shares performed?

Impressively, QBE shares have outpaced the S&P/ASX 200 Index (ASX: XJO), both on a year-to-date and 12-month basis. Since the beginning of 2021, the QBE share price has appreciated 38.5% in value. Meanwhile, the Australian benchmark has climbed a much lower 8.4%.

Oddly, the Australian insurance company is beating the benchmark despite its trailing 12-month earnings still being in the negative. Potentially, investors are more focused on the 12.9% increase in revenue for the year at the end of June 2021.

The post Own QBE (ASX:QBE) shares? New CEO reveals insurer’s biggest challenges appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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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The APA Group (ASX: APA) share price had a brilliant day on Monday despite no price sensitive news released by the company.

However, it did announce its plan to test if Victoria’s high-pressure gas transmission system can be safely used to blend hydrogen.

As of Monday’s close, the APA share price is $9.85. That’s 4.45% higher than it was at the end of Friday’s session.

For context, the S&P/ASX 200 Index (ASX: XJO) closed 0.05% higher today.

Let’s take a closer look at today’s news from the energy infrastructure company.

APA share price gains amid hydrogen proposal

Australia’s latest hydrogen project has been put forward, with APA planning to test if Victoria’s existing infrastructure can accommodate part of the transition to low-carbon energy.

APA CEO and managing director Rob Wheals said:

This landmark hydrogen study… could put Victoria in the box seat to achieve the least cost, fastest, and most efficient transition to a low-carbon future…

Victoria’s gas infrastructure will be vital to connecting Victorians to the energy solutions of tomorrow… and APA’s pipelines are adjacent to some of the best geographical areas for hydrogen production in Australia.

The company’s proposition is part of its Victorian Transmission System access arrangement submission to the Australian Energy Regulator.

The Victorian Transmission System transports nearly all the natural gas used in Victoria through its network of pipelines.

APA’s submission still needs the approval of the regulator.

Other benefits?

Wheals also noted, if approved, the project would benefit from APA’s pilot project in Western Australia. The project is investigating converting a section of gas pipe to carry hydrogen:

Our work in Western Australia will significantly reduce the costs of the proposed Victorian study as a result of the advancements we have already made in partnership with Future Fuels CRC and the University of Wollongong.

The proposition follows the Australian Energy Ministers’ recent decision to speed up the process of amending the National Gas Law.

Doing so could help include hydrogen blends, biomethane, and other renewable methane gas blends in the national energy regulatory framework.

The proposal will test 9 sections of the Victorian network under pressurised hydrogen conditions.

Right now, the APA share price is 0.7% higher than it was at the start of 2021. It has also gained 13.2% since this time last month.

The post APA (ASX:APA) share price leaps 5% amid hydrogen disruption plans appeared first on The Motley Fool Australia.

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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 owns shares of and has recommended APA Group. 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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