The CSL Limited (ASX: CSL) share price looks to have turned a corner today and is charging higher. In afternoon trade the biotherapeutics company’s shares are up 4% to $289.69.

Though, despite this gain, the CSL share price is still down 15.5% from its 52-week high.

Why is the CSL share price underperforming?

The CSL share price has come under pressure over the last couple of months due to concerns over its plasma collections. This is particularly the case in the United States, where the vast majority of its plasma is collected.

These collections are vital to the future production of its immunoglobulin and albumin products. This means that a significant decline in collections because of the pandemic could lead to CSL falling short of expectations in FY 2021 and FY 2022.

Should you be concerned?

While I think it is likely that CSL will have seen a decline in collections during the pandemic, I’m not convinced it will be material enough to impact its future results.

Especially given the high level of unemployment in the United States, which I suspect could lead to more people donating plasma than normal once the crisis passes.

One broker that isn’t concerned is Goldman Sachs. This morning the broker reiterated its buy rating and $336.00 price target on the biotherapeutics company’s shares.

This was in response to CSL’s announcement that it is taking up its option to acquire Vitaeris. It is a clinical-stage biotechnology company which is currently focused on the phase 3 development of a treatment for rejection in solid organ kidney transplant patients.

Goldman Sachs is particularly positive on CSL’s transplant franchise and sees a lot of potential in its pipeline.

It commented: “We believe the most compelling opportunities under development are within the Transplant franchise (clazakizumab, CSL842 and CSL964), for which we assign a total risk-adjusted valuation of A$24 per share (62% of total).”

In respect to clazakizumab, which comes over with the acquisition, Goldman estimates that it could generate peak non-risk adjusted sales of US$5.4 billion by FY 2032 and risk adjusted sales of US$1.3 billion. It places a 25% probability of success on this.

Should you invest?

While there is still a lot of work to do before clazakizumab is a bona fide product, it certainly does look like it has the potential to be a key driver of growth in the future. 

And it’s not the only product under development. CSL has a growing pipeline of potentially lucrative products which could underpin solid earnings growth over the next decade and beyond. It is because of this, that I think its shares deserve to trade at notable premium to the market average.

In light of this, I think the pullback in the CSL share price is a buying opportunity for long term focused investors.

More reading

• 3 companies with great intangible asset moats
• Why CSL, Harvey Norman, IPH, & Saracen shares are charging higher
• Why the CSL share price continues to trail the ASX 200
• ASX 200 jumps 2.4%, unloved shares keep rising
• CSL share price drops lower despite announcing a new acquisition

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Great Southern Mining Ltd (ASX: GSN) share price is flying higher today after the small-cap ASX miner announced the commencement of drilling at its Cox’s Find Project.

Great Southern Mining is a mineral exploration company with a focus on gold. It has landholdings in the gold districts of Laverton in Western Australia and the Mt Carlton region of North Queensland.

What did Great Southern Mining announce?

This morning, Great Southern Mining revealed it has commenced the extensive reverse circulation (RC) and diamond drill program at its 100%-owned Cox’s Find Project. 

Cox’s Find is an orogenic gold deposit located in the Duketon Greenstone Belt in the Laverton District of WA. It is located within 12 kilometres of Regis Resources Limited (ASX: RRL)’s multi-million ounce Garden Well.

Limited exploration has been conducted at the Cox’s Find Project since mining activities ceased in the early 1940s. The mine produced approximately 107,000 tonnes at an average grade of 22 grams per tonne (g/t) gold for 77,000 ounces.

In late 2019, Great Southern Mining completed its maiden RC drilling program at Cox’s Find, comprising 17 RC holes for 2,658 metres. According to the company, results from this maiden program highlighted that the remnant high-grade gold mineralisation remains.

Standout results from this program (announced last year) include:

• 8 metres at 9.43 g/t gold from 73 metres;
• 2 metres at 36 g/t gold from 146 metres;
• 5 metres at 45.54 g/t gold from 140 metres;
• 6 metres at 7.9 g/t gold from 132 metres; and
• 5 metres at 31.23 g/t gold from 134 metres.

The commencement of the new drilling program announced today will build on these recent results.

“This will be the first intensive drill program targeting the down plunge extensions of the deposit and the first diamond drill program targeting the high-grade lode,” said CEO Mark Major.

“This program should enhance our structural understanding of the deposit and assist with advancing the forthcoming drill programs at the Cox’s Find deposit and support targeting repeat structures within our tenure,” Mr Major added.

Great Southern Mining noted that the RC drill rig is on-site and it has commenced drilling the initial phase of the 9,000-metre drilling program. Meanwhile, the company expects the diamond drill rig to arrive on-site within a week.

At the time of writing, the Great Southern Mining share price is up 12.94% for the day to 9.6 cents. This takes the company’s current market capitalisation to just under $40 million.

In other news in the gold space, large-cap ASX gold shares are charging higher today after the gold price rebounded overnight.

More reading

• Is the CSL share price in the buy zone?
• Does the ASX 200 just follow the US markets?
• 3 top ASX shares to buy now to get rich later
• ASX 200 up 0.45%: Harvey Norman declares special dividend, gold miners race higher
• Are Aussies still withdrawing cash like crazy?

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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