Month: May 2022

The Aussie Broadband Ltd (ASX: ABB) share price is edging into the green this afternoon, reversing the trend of seven consecutive day of losses for the ASX telecom company.

At the time of writing, Aussie Broadband shares are 0.76% higher to $3.99 each. It comes after they fell to as low as $3.66 in morning trade.

While most of the recent string of declines have been modest, that wasn’t the case on Monday.

What happened on Monday?

If you’ve tuned into the financial news this week, you’re likely aware of the 28.1% crash in the Aussie Broadband share price on Monday.

This looks to have been driven by a company update that downgraded a number of key metrics.

Among those, the telco reduced guidance for the number of broadband connections in FY 2022. It also reduced guidance for FY 2022 earnings before interest, taxes, depreciation and amortisation (EBITDA) from the previous forecast of $27 million to $30 million down to $27 million to $28 million.

31% upside tipped for Aussie Broadband share price

Following this week’s slide, there could be some significant gains ahead for the Aussie Broadband shareholders.

That’s according to analysts at Jeffries who upgraded the broker’s rating for the stock from a ‘hold’ to a ‘buy’.

As reported by NABTrade, Jeffries cut its target for the Aussie Broadband share price from $5.60 to $5.00. Still, that’s 31% above the current price.

With broadband connections facing headwinds, Jeffries said the company will find growth more difficult to achieve. Aussie Broadband’s recent acquisition of Over The Wire could assist in that growth, but the broker doesn’t expect to see a material impact from that for 18 months.

Jeffries cut its forecast for total broadband subscriptions from the previous 595,000 down to 586,000.

Aussie Broadband share price snapshot

Despite this week’s sharp selloff, the Aussie Broadband shares remain up 33% since this time last year. By comparison, the All Ordinaries Index (ASX: XAO) has gained 3% over the 12 months.

The post Aussie Broadband share price rallies: Top broker tips 31% upside appeared first on The Motley Fool Australia.

More reading

• Aussie Broadband share price stages partial recovery on ‘further market update’
• Why Appen, Aussie Broadband, IGO, and Kogan shares are sinking today
• Here’s why the Aussie Broadband share price is crashing 25% today
• Best ASX shares to buy in May 2022
• 3 ASX All Ordinaries shares rocking all-time highs today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/MLR0cnV

The EMvision Medical Devices Ltd (ASX: EMV) share price has emerged from a trading halt on Wednesday morning, and shot 8% into the green.

Prior to their halt, EMVision shares closed at $1.94. Upon returning to trade, they have been sitting in the green amid the release of a company announcement. At the time of writing, EMvision shares are swapping hands at $2.05.

What did EMVision announce?

The company advised it has entered into an original equipment manufacturer (OEM) agreement with Keysight Technologies Inc (NYSE: KEYS).

According to the release, “Keysight is the world leader in radiofrequency (RF) test and measurement technology”. Specifically, the company signed its agreement with Keysight’s Australian subsidiary.

Under the agreement, EMvision will receive exclusive supply for ‘fast sweep’ features in the vector network analyser (VNA).

For reference, EMvision says the VNA is a custom solution developed in collaboration with Keysight.

“The VNA is a high performance, lower component count, miniaturised module responsible for accurate signal measurement,” states the release.

“The custom VNA represents a strategic investment by Keysight into the electromagnetic imaging sector.”

Regarding the announcement, EMvision CEO Dr Ron Weinberger says the collaboration “has been first class”.

This Agreement recognises the roles that both parties have played in the development of the bespoke VNA over a period of 3 years. I would like to thank the Keysight team for their concerted work in developing a best-of-breed solution for EMvision and look forward to the commercial phase of our relationship.

Noteworthy is that Keysight is not a medical device manufacturer. However, it does possess “the strongest portfolio of Vector Network Analysers (VNA), which are core to the sensors that are being used inside EMvision’s portable brain scanner,” says the company.

The agreement builds on a relationship that spawned back in 2019. Then, the pair entered into a strategic collaboration to develop “custom healthcare-focused VNA solutions”.

EMvision share price snapshot

In the last 12 months the EMvision share price has fallen more than 38%. Meanwhile, it is 23.5% in the red since trading resumed this year.

Following this announcement, shares have bounced from a low point and are tracking back towards monthly highs.

The post Here’s why the EMvision share price surged 8% on Wednesday appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX lithium stocks to buy now
• The Zip share price is plunging 9% today. Here’s why
• What is the Vanguard Diversified High Growth Index ETF invested in?
• Here’s why the ARB Corporation share price is plunging 10% today
• Here’s why the Peppermint Innovation share price is flying higher today

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended EMvision Medical Devices Limited. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/BnMxw12

With electric vehicle and renewable energy adoption growing rapidly, demand for battery materials has been insatiable. This has led to sky high prices for lithium, which bodes well for the ASX lithium stocks listed below.

And while their shares have been on fire over the last 12 months, the good news is that analysts don’t believe it is too late to invest. Here’s what they are saying about these buy-rated lithium stocks:

Allkem Ltd (ASX: AKE)

The first ASX lithium stock to look at is Allkem. It is a lithium giant which owns a collection of world class operations and projects across Western Australia, Argentina, and Canada. Unlike the many explorers on the ASX, Allkem is already benefiting from sky high prices for lithium. In fact, after a big rise in prices during the March quarter, Allkem expects even stronger pricing in the June quarter. It is forecasting an average of US$5,000 per dry metric tonne of spodumene concentrate and US$35,000 per tonne for its lithium carbonate.

Morgans is very bullish on Allkem. It currently has an add rating and $14.83 price target on its shares.

Lake Resources N.L. (ASX: LKE)

Another ASX lithium stock that analysts rate as a buy is Lake Resources. It is developing the Kachi lithium brine project in north-western Argentina near one of Allkem’s operations. This project is aiming to deliver base case production of 50,000 tonnes of lithium carbonate once operational. After which, the company is aiming to take group annual production to 100,000 tonnes by 2030. For now, Lake has signed away all of its initial 50,000 tonnes of lithium product offtake to Hanwa and Ford.

Bell Potter is positive on the company and has a speculative buy rating and $2.83 price target on its shares.

Mineral Resources Limited (ASX: MIN)

A third ASX lithium stock for investors to look at is Mineral Resources. It has exposure to lithium through its Mt Marion Lithium Project and Wodgina Lithium Project. The latter is one of the largest known hard rock lithium deposits in the world with a production life of over 30 years.

Goldman Sachs is very positive on the company’s outlook and is forecasting a more than doubling of group EBITDA to over A$2bn in FY 2023 thanks largely to higher lithium prices. Its analysts currently have a buy rating and $73.80 price target on the company’s shares.

The post Brokers name 3 ASX lithium stocks to buy now appeared first on The Motley Fool Australia.

More reading

• Why did the Lake Resources share price tumble 7% today?
• What’s dragging the Mineral Resources share price lower on Tuesday?
• Analysts rate these ASX growth shares as buys in May
• What’s the outlook for ASX 200 mining shares in May?
• 2 ASX lithium shares to buy in May 2022: brokers

Motley Fool contributor James Mickleboro has positions in Allkem Limited. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/qOE4RzK

It’s been another bumpy day for ASX shares so far this Wednesday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down by a paltry 0.06% after spending most of the morning in green territory. But the Zip Co Ltd (ASX: ZIP) share price hasn’t been nearly as fortunate.

As it currently stands, Zip shares are down by a rather horrible 9.35% at just $1.05 a share. That’s just a whisker off of the company’s 52-week low of $1.

This latest plunge now means the ASX’s largest buy now, pay later (BNPL) share has lost a staggering 75.8% over 2022 thus far.

So what’s causing Zip’s decisive plunge today?

Zip share price plunges amid escrow release

Well, it’s likely to be the ASX announcement the company put out this morning before market open. In this announcement, Zip informed investors that a large volume of shares will be steadily released from voluntary escrow. This will all occur over the next month or so.

Around 7.46 million shares will be released on 12 May. Following this, another 1.5 million or so shares will leave escrow on 23 May. The final tranche of 13.2 million shares is to be released on 1 June.

These tranches of shares correspond to the scrip the company paid for the acquisitions of Twisto Payments, Spotii Holdings and QuadPay Inc respectively.

So it’s very possible that investors are worried that the release of such a large volume of shares will result in a sustained period of selling pressure on the Zip share price. After all, Zip has fallen by such a large margin over 2022 thus far. As such, there’s a fair chance that many of the investors holding these shares will opt to cash them out once they are out of escrow.

So this could be why the Zip share price is plunging today. 

At the current Zip share price, this ASX BNPL share has a market capitalisation of $791.47 million. 

The post The Zip share price is plunging 9% today. Here’s why appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• Why Block, Domain, Metcash, and Zip shares are pushing higher
• Back in the green: Zip share price launches 6% on Tuesday
• These were the worst performing ASX 200 shares in April
• April was a disastrous month for the Zip share price. Here’s why

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ZIPCOLTD FPO. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/GPRzJgA

ASX exchange-traded fund (ETF) provider Vanguard has many popular ETF products on the ASX that are relatively well known. Take the Vanguard Australian Shares Index ETF (ASX: VAS). It is by far the most popular index fund on the ASX. But a lesser-known fund is the Vanguard Diversified High Growth Index ETF (ASX: VDHG).

This ETF currently has just $1.72 billion in funds under management, which is vastly below that of VAS. VAS is sitting at around $10 billion right now. But VDHG is a rather special ETF, so let’s dig into why.

The Vanguard Diversified High Growth Index ETF is a little different to your classic index fund. Whereas an ETF like VAS tracks an index and holds ASX shares within its portfolio, VDHG does neither. It instead functions as an ‘ETF of ETFs’. It includes positions in a number of other Vanguard ETFs to give investors massive diversification.

What exactly does the VDHG ETF invest in?

Let’s break it down. So as it currently stands, 35.9% of VDHG’s portfolio is invested in the Vanguard Australian Index Fund (wholesale), which is essentially an unlisted version of VAS.

Another 26.5% of the fund resides with the Vanguard International Shares Index Fund, with another 16.2% in the version of this fund hedged to Australian dollars.

Then we have a 7.1% allocation to the Vanguard Global Aggregate Bond Index Fund. A further 6.2% goes to the Vanguard International Small Companies Index Fund.

Rounding out the portfolio, we have a 5% weighting to the Vanguard Emerging Markets Shares Index Fund and a 3.1% dedicated to the Vanguard Australian Fixed Interest Index Fund.

So VDHG can be thought of as a mix of various other Vanguard ETFs, all in one investment. It’s a ‘high growth’ fund because this particular ETF has high weightings to ‘risky’ asset classes like small companies and emerging markets, and low weightings to ‘safe’ assets like fixed interest and bond investments.

Vanguard provides other ETFs in this ilk that reverse this weighting. For instance, the Vanguard Diversified Conservative Index ETF (ASX: VDCO) invests in similar underlying investments. But it instead gives far more weight to the bond and fixed interest investments, and less to shares, than VDHG.

So that’s how the Vanguard Diversified High Growth Index ETF puts money to work on its investors’ behalf. VDHG charges a management fee of 0.27% per annum.

The post What is the Vanguard Diversified High Growth Index ETF invested in? appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated quality ETFs for May 2022: experts
• How does the VAS dividend compare to a high-yield ETF?
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in
• Is the Vanguard Australian Shares ETF a good buy at current prices?
• How diversified is the Vanguard Australian Shares Index ETF?

Motley Fool contributor Sebastian Bowen 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/Cukxhj2

The ARB Corporation Limited (ASX: ARB) share price is tumbling on the release of a trading update.

The S&P/ASX 200 Index (ASX: XJO) company outlined its performance for the financial year to date as of 31 March this morning to the apparent disappointment of the market.

At the time of writing, the ARB share price is $33.75, 10.82% lower than its previous close.

Let’s take a look at today’s news from the 4X4 accessories manufacturer and distributor.

What’s weighing on ARB’s stock today?

The ARB share price is in the red after the company updated the market on its performance for the financial year so far. And while its revenue appears to be strong, it’s battling numerous challenges.

ARB is struggling against commodity prices and shortfalls, a global shortage of new vehicles, global logistics and pricing, a labour and skills shortage, and exchange rate volatility.

Despite such trials, the company is expecting to report approximately $700 million of revenue for financial year 2022. That’s nearly 12% more than it brought in last financial year.

Though, its expenses are also forecast to increase. It’s expecting to report expenditure of $57 million this financial year – up from $33.1 million in financial year 2021.

That’s been boosted by costs associated with its factories, as well as upgrades to its retail stores and manufacturing equipment.

Back to more positive news, ARB’s sales revenue has increased 18% over the 9 months ended 31 March compared to the same period of 2021.

It reached $525 million over that time frame, driven by a 28.4% increase in revenue from ARB’s exports market.

The ARB share price might also be suffering on news its Australian new vehicle sales have remained lower than pre-pandemic levels.

Additionally, sales of Toyota Landcruiser wagons – previously one of the company’s most popular vehicles ­– fell considerably. ARB states the drop was due to the changeover from the model’s 200 series to the 300 series.

Still, the company states that its order book remains high, it’s increased its inventory levels to protect against extended lead times, and impacts from new vehicle models haven’t flowed through yet.

ARB also noted it’s working on emerging partnerships with major customers and the development of new products.

ARB share price snapshot

The ARB share price has been struggling in 2022.

Today’s slump included, it has fallen 38% since the start of the year. It’s also 10% lower than it was this time last year.

The post Here’s why the ARB Corporation share price is plunging 10% today appeared first on The Motley Fool Australia.

More reading

• Here are the ASX retail share winners and losers of the last quarter
• Why Andromeda Metals, ARB, BCI Minerals, and WiseTech shares are tumbling lower
• Here’s why the ARB Corporation share price is on the slide today
• Hoping to pocket the ARB Corporation dividend? Read this

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 recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/pLcM2a9

The Peppermint Innovation Ltd (ASX: PIL) share price is surging higher today. Today the company emerged from the trading halt it entered on Monday.

At the time of writing, shares in the ASX mobile banking payments provider are up 17.65%. In earlier trade on Wednesday, Peppermint Innovation shares posted gains of more than 23%.

So, what’s piquing investor interest?

What’s this about an electronic money issuer license?

The Peppermint Innovation share price is leaping higher today after the company reported the Central Bank of the Philippines, Bangko Sentral ng Pilipinas, had granted it a license to operate as an electronic money issuer (EMI).

The EMI licence allows Peppermint to deliver e-wallet services through its Bizmoto mobile app. This will enable any Filipino to use its Bizmoto platform to receive digital money and access digital services.

According to the release, some 39 million Filipinos are transacting digitally.

The company said it plans to reach out to farmers, fishermen and entrepreneurs, along with Filipinos living on day-to-day pay cheques. Via Bizmoto they’ll have faster digital access to their salaries, pensions, and any other payments they’re entitled to.

Commenting on the EMI license, Peppermint Innovation CEO Chris Kain said, “We always said one of our operational objectives was to obtain an EMI licence and we’ve now achieved that milestone.”

According to Kain:

The issuance of an EMI licence for Peppermint will, ultimately, deliver significant value to the company and to the communities we operate in. Clearly, the digital revolution is with us and the Bizmoto platform can now facilitate any e-money transaction and service open-loop e-wallet accounts, providing Filipinos with a convenient and secure way to receive digital money and services.

The Peppermint Innovation share price could also be getting a lift from projections by the Central Bank of the Philippines. The bank forecasts that 50% of all retail transactions in the Philippines will be digital by 2023. Further, the central bank believes that 70% of Filipino adults will have formal accounts by next year.

Peppermint Innovation share price snapshot

The Peppermint Innovation share price is up 85% in 2022. That compares to a 4% year-to-date loss posted by the All Ordinaries Index (ASX: XAO).

Peppermint Innovation is a microcap ASX share subject to big share price swings. It has a market cap of $34 million.

The post Here’s why the Peppermint Innovation share price is flying higher today appeared first on The Motley Fool Australia.

More reading

• Why is the Air New Zealand share price grounded on Wednesday?
• The large market cap crypto you’ve probably never heard of
• Here’s why the Surefire Resources share price is firing 19% higher today
• Altamin share price explodes 46% on takeover approach
• Top broker tips 17% upside for Qantas shares following Airbus order

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/Jc1zOqm

The Air New Zealand Limited (ASX: AIZ) share price won’t be going anywhere on Wednesday.

This comes as the company requested that its shares be placed in a trading halt.

As such, the airline operator’s shares are frozen at 79 cents apiece.

It’s worth noting that Air New Zealand shares have lost more than 30% in value over the past month. You can find out about the details here.

Why is the Air New Zealand share price halted?

Prior to the market opening, the company requested the Air New Zealand share price be halted while it prepares an announcement.

According to the release, the company is planning to make an announcement regarding the outcome of its “shortfall bookbuild of ordinary shares attributable to unexercised rights in its renounceable rights offer”.

Air New Zealand has requested the trading halt remains in place until Thursday 5 May or following the release of the announcement, whichever comes first.

Air New Zealand’s shortfall bookbuild

While details remain unknown about the pending outcome, we take a look at Air New Zealand’s shortfall bookbuild.

The company is conducting a bookbuild of approximately 274 million shares that were not taken up by eligible shareholders under the rights offer.

The price at which new shares will be issued under the shortfall bookbuild is the bookbuild price. This will be determined by Air New Zealand in consultation with the underwriters today. Although, management previously noted that it will be equal to or above the rights offer price of NZ$0.53 per new share.

Any shareholders who applied for additional new shares in the shortfall bookbuild will be allocated shares at the bookbuild price.

For those who did not take up their full entitlements in the rights offer, those shareholders will receive a pro-rata share of any premium between the bookbuild price and the rights offer price.

About the Air New Zealand share price

Since this time last year, Air New Zealand shares have fallen almost 50%.

This has mostly been attributed to its losses in the last couple of months following the company’s recapitalisation package.

On valuation grounds, Air New Zealand has a market capitalisation of roughly $887.05 million, with approximately 1.12 billion shares outstanding.

The post Why is the Air New Zealand share price grounded on Wednesday? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Peppermint Innovation share price is flying higher today
• The large market cap crypto you’ve probably never heard of
• Here’s why the Surefire Resources share price is firing 19% higher today
• Altamin share price explodes 46% on takeover approach
• Top broker tips 17% upside for Qantas shares following Airbus order

Motley Fool contributor Aaron Teboneras 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/sxkzm7l

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Terra, with its token LUNA (CRYPTO: LUNA), has the 9th largest market cap at $30 billion. Yet, you may have never heard of it, and you wouldn’t be alone. Terra’s popularity and growth mostly come from the Asia-Pacific region of the world.

Terra is attempting to build a currency of stable coins, backed by real and digital assets. In 2022 the currency is finally hitting critical mass and activity.

Surging Activity

The number of wallet addresses on the network has been surging since the end of 2021, from about 900,000 to 3.5 million wallets. This has caused a massive uptick in the buying, selling, and spending of the currency, which increases both its value and utility.

The LUNA token may be about to go through the mass-market popularity that many alt coins enjoyed in 2021, thanks to its recent introduction to the U.S. market. Being an Asia-Pacific focused company, the U.S. has not been the primary focus. But already it has 220,000 stakers across the globe, who provide a stable network ready to handle growth.

Built to Grow

Terra already has proven utility, instead of just frothy theoretical value, as many hyped alt coins tend to do. The LUNA blockchain has proven it can handle high transaction volume and the steady number of stakers shows a stable and long-term belief in LUNA. The network has been integrated into apps as a payment platform. It has been built to be faster and cheaper to run than ETH (with 10,000 transactions per second speed compared to 20 on ETH). It has DeFi, staking, and other financial tools already running.

Terra is ready to handle the increased activity on its blockchain. Currently, it handles a 24-hour volume of about $3.1 billion. Compare that to ADA $900 Million, SOL $1.5 billion, and XRP $1.9 billion. Even with this trading volume, the chain is still processing less transactions per second than the 10,000 limit. Current estimates from Terra is 4,000-7,000 transactions per second. Terra has shown it can handle high volume, and is able to handle more.

Terra is trying to be a global currency and money mover, and is succeeding in getting there (with a long way to go still). It could become the cheapest and most efficient way to move currencies globally.

Also noteworthy: Terra recently added $3 billion in bitcoin to back their currency (with a goal of adding up to $10 billion). This is a great sign that the currency is growing and its developers are putting as much support as possible behind it.

Terra wants its stable coins to be based on the Bitcoin monetary standard and will allow Terra to build a stable coin that is actually decentralized. This is a very unique and complex way of doing stable coins which is traditionally based on a 1 to 1 relationship with a central repository.

In a traditional stable coin the cryptocurrency is backed by a traditional bank account. Where 1 token is backed by $1 real dollar in a bank account. Terra is backing its stable coin with assets on the blockchain. There is no central traditional bank holding all the value.

Terra is using crypto investments in LUNA to decentralize the assets backing up the stable coins.

2022 and Beyond

Terra has laid the groundwork to have a bright future. LUNA may be one of the best performing alt coins in 2022 and beyond. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post The large market cap crypto you’ve probably never heard of appeared first on The Motley Fool Australia.

More reading

• Here’s why the Peppermint Innovation share price is flying higher today
• Why is the Air New Zealand share price grounded on Wednesday?
• Here’s why the Surefire Resources share price is firing 19% higher today
• Altamin share price explodes 46% on takeover approach
• Top broker tips 17% upside for Qantas shares following Airbus order

Stephen Woicik owns Bitcoin, Ethereum and Cardano. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Ethereum, and Solana. The Motley Fool Australia owns and has recommended Bitcoin, Ethereum and Solana. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/vKFsdxz

The Surefire Resources share price is on fire today amid an exploration update.

The explorer’s shares are currently trading at 5.2 cents, an 8% gain. However, in earlier trade Surefire shares surged 18.75% to 5.7 cents before retreating. For perspective, the S&P/ASX 200 Resources Index (ASX: XJR) is down 0.59% at the time of writing.

Let’s take a look at what the company reported today.

Why is the Surefire Resources share price surging?

A preliminary scoping study found the company’s Victory Bore project could contain 2.263 billion pounds of vanadium pentoxide.

This project, 100% owned by Surefire, is located in Yilgarn, Western Australia. It includes the Victory Bore deposit and Unaly Hill deposit.

Test work showed three products can be extracted from the ore. This includes vanadium pentoxide flake, ferrovanadium (FeV) and magnetite concentrate suitable for ‘green’ pig iron production.

Surefire will assess the optimal production method for the best profit and shareholder returns.

Commenting on the news, the company’s managing director Vladimir Nikolaenko said:

Surefire is well positioned to have the Victory Bore Vanadium Project enter the market at a critical time in the vanadium industry.

Excellent metallurgical properties and straight forward mining and beneficiation will put the project at the low end of the cost curve.

The company said the update confirms the economic viability of the project.

Today’s news amends a release yesterday afternoon, where the company reported the deposit had just 2.263 million pounds of the compound.

Share price snapshot

The Surefire Resources share price has surged 93% in a year, while it is rocketing 333% year to date.

In the past month, Surefire shares have soared 225%, while they are up 68% in the past week alone.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned around 4% over the past year.

Surefire has a market capitalisation of about $59 million based on the current share price.

The post Here’s why the Surefire Resources share price is firing 19% higher today appeared first on The Motley Fool Australia.

More reading

• Altamin share price explodes 46% on takeover approach
• Top broker tips 17% upside for Qantas shares following Airbus order
• What would happen if Appen shares were removed from the ASX 200? 
• Why Alphabet stock fell 18% in April
• ASX 200 midday update: ANZ higher on results, Flight Centre and JB Hi-Fi sink following updates

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/qkvJPe5