Category: Stock Market

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• ASX 200 hits record high, UBS keeps end of year target steady
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Here’s the lithium price forecast through to 2027
• 5 things to watch on the ASX 200 on Tuesday

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 PolyNovo and Reliance Worldwide. The Motley Fool Australia has positions in and has recommended Smartgroup. The Motley Fool Australia has recommended PolyNovo. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ANZ Group Holdings Ltd (ASX: ANZ) share price touched a new seven-year high of $30.10 this afternoon. As the chart below shows, it hasn’t been this high since 2017.

Many ASX bank shares hit new highs yesterday, continuing a very strong period for bank share prices.

In 2024 to date:

• The ANZ share price is up 16%
• The Commonwealth Bank of Australia (ASX: CBA) share price is up 18%
• The Westpac Banking Corp (ASX: WBC) share price is up 23%
• The National Australia Bank Ltd (ASX: NAB) share price is up 22%

After such a strong run, should investors consider ANZ shares as an opportunity? Let’s consider the situation.

Recent financial performance

The recent FY24 first-half result did not exactly deliver inspirational numbers. Compared to the second half of FY23, cash profit fell 1% to $3.55 billion and statutory net profit dropped by 4% to $3.4 billion. Earnings per share (EPS) declined by 1% to $1.183.

The result had a couple of positive aspects — it launched a $2 billion share buyback and grew the interim dividend per share to 83 cents. In terms of shareholder returns, it has been a rewarding time.

Property prices are rising in Australia, which lowers ANZ’s risk of bad debts. However, arrears are rising at the major banks as some households struggle to keep up with the elevated interest rates. Changes in market expectations about arrears can influence the ANZ share price.

The bank’s net interest margin (NIM) was 2.32% in the second quarter of FY24. This has dropped significantly from 2.47% in the first quarter of FY23. Indeed, the NIM has dropped every quarter since the post-COVID peak.

There is a lot of competition in the bank space for both loans and deposits, which is a headwind for margins. Competitors like Macquarie Group Ltd (ASX: MQG) have grown their market share.

It’s understandable why ANZ wants to acquire the Suncorp Group Ltd (ASX: SUN) banking operations because it can help grow its market position and improve geographic diversification with a bigger allocation to Queensland. The bigger scale comes with benefits in the banking world.

Is it too late to buy?

Over time, companies that grow their earnings typically see their share price rise.

The broker UBS suggests that ANZ’s net profit will fall in FY24, but it then sees profit growth in FY25, FY26, and FY27, partly due to the bank’s enlarged scale after the deal to buy Suncorp Bank.

ANZ shares are valued at 12x FY25’s estimated earnings and 11x FY27’s estimated earnings, according to UBS forecasts.

If the ASX bank share can deliver earnings growth in FY25 onwards, then the ANZ share price may continue to rise.

However, UBS has a price target of $30 for the business, which may suggest that the bank does not have much capital growth potential over the next 12 months. It may not be too late to buy ANZ shares for their long-term potential, but I wouldn’t expect double-digit capital growth over the next year.

The post ANZ shares strike 7-year high, is it too late to buy? appeared first on The Motley Fool Australia.

More reading

• Westpac and the other big four bank shares are ‘due a correction’
• Westpac and three other ASX 200 bank shares smashing new multi-year highs today
• Prepare for earnings! What ASX bank share buyers can learn from Wells Fargo results?
• Top 10 most traded ASX shares and US stocks in June
• Why mum and dad investors aren’t buying ASX bank shares like they used to

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Liontown Resources Ltd (ASX: LTR) share price is almost unchanged compared to 34 months ago.

At 97 cents apiece, shares in the lithium hopeful are roughly the same value as they were back in September 2021, despite surpassing $3 a pop in the time between. However, the lack of share price appreciation has failed to deter one company insider from loading up on Liontown shares.

Insider transactions provide a glimpse into the sentiment among people who perhaps most intimately know the company and its intrinsic value. While it’s by no means conclusive on whether the shares are ‘cheap’ or ‘expensive’, it certainly can be seen as a vote of confidence.

Hitting buy on Liontown shares

Someone on the board of Liontown Resources made an on-market buy of 55,000 shares yesterday. Because this information must be disclosed to shareholders, we can find all the transaction details.

According to the notice, independent non-executive director Jennifer Morris made the trade on Tuesday. The parcel of Liontown shares was acquired at an average price of 97 cents per share, amounting to a $53,350 investment.

Following the purchase, Morris’ indirect and direct ownership of Liontown totals 141,619 shares. The board member also holds 500,000 unlisted options with an exercise price of $2.45, expiring on 23 November 2024.

Morris’ $53,350 buy arrived the day after Liontown announced an offtake agreement with Beijing Sinomine International Trade (BSIT) on Tuesday. The announcement helped lift the Liontown Resources share price back above $1.00 for the first time since 19 June.

As part of the agreement, Liontown will supply up to 100,000 dry metric tonnes of spodumene concentrate over a 10-month timeframe beginning 30 September 2024 at the latest. The agreement expands upon existing offtake arrangements with LG, Ford, and Tesla.

Is it a well-timed investment?

The price of lithium is down roughly 85% from its 2022 high, taking a hit as demand for electric vehicles dried up amid heightened financing costs.

However, the Tesla Inc (NASDAQ: TSLA) stock price and the broader share market have rallied over the past month as rate cuts begin re-entering the conversation. Investors are growing more optimistic about lower interest rates being within reach, reigniting hopes of greater lithium demand ahead.

As reported by CNBC, forecasts made by BMI of Fitch Solutions suggest there’s a risk of a global lithium shortage next year. Notably, the report highlights an expected 20.4% average annual increase in lithium demand within China between 2023 and 2032 versus a 6% supply growth rate in the country over the same period.

Still, not all analysts are bullish on the battery commodity. As noted by my colleague, James Mickleboro, Goldman Sachs sees little in the way of lithium price upside between now and 2027.

Only time will show whether Jennifer Morris’ $53,350 investment in Liontown shares pays off.

The post Who is buying 55,000 Liontown shares this week? appeared first on The Motley Fool Australia.

More reading

• Here’s the lithium price forecast through to 2027
• Why are Liontown shares roaring higher on Monday?
• These are the 10 most shorted ASX shares
• Top 5 investment themes exciting ASX shares investors in FY25
• Here 3 ASX lithium shares to watch for FY25

Motley Fool contributor Mitchell Lawler has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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.

The Bank of Queensland Ltd (ASX: BOQ) share price is in the green today, up 1.2%, alongside the S&P/ASX 200 Index (ASX: XJO), which is trading around 1% higher.

Could the ASX bank share be getting a boost on speculation of possible takeover action?

Potential BOQ takeover attempt?

In recent times, the market has seen ANZ Group Holdings Ltd (ASX: ANZ) launch a takeover effort to absorb the banking operations of Suncorp Group Ltd (ASX: SUN) to boost its Queensland presence and overall scale.

Federal treasurer Jim Chalmers recently gave ANZ the go-ahead for the takeover.

Meanwhile, multiple interested parties have considered the Bank of Queensland a potential takeover target, according to reporting by The Australian.

Those groups have reportedly not followed through (yet) after considering a possible deal.

Strategic review

A few months ago, the Queensland-focused ASX bank share launched a strategic review of the business.

The newspaper report suggested that the current BOQ share price was not compelling enough to enact a deal. Even so, those groups have still been considering the bank and its assets.

Some smaller banks, like BOQ, have difficulty trying to be as profitable as the major ASX bank shares.

Analysts’ views on how BOQ could increase profitability after its strategic review included suggestions to become smaller and more margin-focused. It could also pursue securitising its loans more aggressively, make loans without financing them, or sell some assets.

However, some of those options may not be viable or preferred for the ASX bank share.

How much profit is the bank expected to make?

While BOQ’s 2024 financial year is ongoing, the broker UBS forecasts the bank could generate a net profit after tax (NPAT) of $294 million. However, after that, UBS thinks BOQ’s net profit could steadily rise in each financial year between FY25 and FY28. Growing profit could be helpful for the BOQ share price.

Analysts at the broker forecast the BOQ net profit to grow 8.8% to $320 million in FY25 and to $406 million by FY28. If both forecasts are correct, that would be a rise of 38% between FY24 and FY28.

Regarding the potential dividend payment, the forecast on Commsec suggests a possible annual payout of 33 cents per share in FY24 and 34 cents per share in FY25. That would translate into forward grossed-up dividend yields of 7.5% and 7.75%, respectively.

The post BOQ share price rises amid rumoured takeover interest appeared first on The Motley Fool Australia.

More reading

• Here’s why BOQ shares could be on the verge of a turnaround
• Do ANZ shares offer the biggest dividend yield in the ASX bank sector?
• Is the fully franked 6.2% yield on Bank of Queensland shares for real right now?
• Can things get better for BOQ shares in FY25?
• ASX 200 bank shares ‘don’t appear overly expensive’ compared to global peers: UBS

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 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.

DroneShield Ltd (ASX: DRO) shares are taking another beating today.

In an unusual sell-off for the high-flying All Ordinaries Index (ASX: XAO) drone defence stock, shares closed down a precipitous 22.2% yesterday trading for $2.02 apiece.

That came on the heels of Monday’s 11.1% surge, which saw DroneShield shares surge to an all-time closing high of $2.60.

Today, the selling action continues, with the stock down 18.8% at $1.64 a share.

As the above chart shows (if you look closely), shares in the ASX drone defence company have been sold off for the past two days, sending them down 37%.

However, even after that big fall, shares remain up 335% so far in 2024.

Here’s what’s happening.

Why has the ASX drone defence come under pressure?

As Motley Fool analyst Sebastian Bowen reported, the big selldown in DroneShield shares appears to be driven by an article published before market open on Tuesday questioning the company’s high valuation.

The Capital Brief article noted that at Monday’s $2.60 a share, DroneShield commanded a market cap of $1.98 billion.

Rodney Forrest, director of Sublime Funds Management, was quoted as saying, “Its valuation is wild.”

DroneShield responded to an ASX price query, citing the article as the likely reason for the pressure on its shares.

The company noted that article included the following:

• Share price performance over the recent period
• Comparison of DRO’s market cap to several large companies across different industries in the Australian market
• Statements by two fund managers on their opinion of DRO’s valuation being overheated
• Statements from two stock analysts on their outlook for DRO
• A brief summary of DRO’s business
• Reference to DRO being a popularly traded stock on several broker platforms
• A historical sale of DRO’s shares held by one of DRO’s directors, Jethro Marks.

Management added, “There is no new information or change of circumstance around the business” that should impact DroneShield’s share performance.

Time to pounce on DroneShield shares?

To gauge the past two days of selling, it’s important to look at the bigger picture.

On Monday, when DroneShield shares closed at $2.60, the stock was up 863% over 12 months. Yep, a year ago, you could have bought shares for just 27 cents a pop.

Like Icarus, then, the drone defence stock may have flown too high, too fast.

Unlike Icarus, though, I don’t imagine the share price is going to plunge into the sea.

The negative market reaction appears more related to short-term opportunism to make a quick buck, shorting the stock rather than any longer-term fundamental retreat from the company’s strong growth prospects.

The rapid growth of potentially hostile drones is extremely unlikely to abate in the foreseeable future. And the AI revolution will only galvanize this trend. This means that the demand for rugged, effective counterdrone measures is also likely to keep growing apace.

This is a trend we’ve already seen playing out with recent growth metrics in DroneShield shares.

The company recently achieved record first-quarter revenues of $16.4 million, a 10-fold increase (900%) from the prior corresponding quarter.

At the end of April, DroneShield had a $27 million contracted backlog with a sales pipeline of more than $519 million.

So, is it time to pounce?

While shares could certainly still slide further from here over the near term, I believe that following the 37% two-day sell-down, long-term investors will likely look back at today’s $1.64 a share as a bargain entry point.

The post DroneShield shares dive another 19%! Time to pounce? appeared first on The Motley Fool Australia.

More reading

• Why Deep Yellow, DroneShield, Mount Gibson Iron, and Praemium shares are falling
• What’s next for Droneshield stock after Tuesday’s 22% drop
• Big ASX news! DroneShield share price crashes 31%
• Top 10 most traded ASX shares and US stocks in June
• Are ASX small-cap shares back in vogue amid a big shift?

Motley Fool contributor Bernd Struben 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 DroneShield. 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.

Most of us would be aware that ASX shares have had an exceptional few days of trading on the Australian share market. We’ve seen a flurry of new all-time highs for the S&P/ASX 200 Index (ASX: XJO) in recent days. And we’ve also seen the Vanguard Australian Shares Index ETF (ASX: VAS) soar to some new records of its own.

The Vanguard Australian Shares ETF is the most popular and widely held index fund on the ASX. So news of its new all-time record high today will delight investors all around the country.

Yesterday, VAS units closed at $98.87 each. But this morning, those same units opened at $99.60 before rising up as high as $99.97 – tantalisingly close to that elusive $100 mark.

At the time of writing, the Vanguard Australian Shares ETF remains just a touch below that new high watermark, with this exchange-traded fund currently up 0.98% at $99.94.

We don’t have to look too far to understand why this ETF has just hit a new record today.

Why has the VAS ETF just hit a new ASX high?

The Vanguard Australian Shares ETF is an index fund, meaning it effectively mirrors a broader index. That index is not the S&P/ASX 200 Index (ASX: XJO), but rather the S&P/ASX 300 Index (ASX: XKO).

This index tracks the largest 300 stocks on the ASX by market capitalisation. It should come as no surprise to hear that this index has also reached a new record high today.

At present, the ASX 300 is up an eerily similar 1.02% at 8,015.8 points. That mark is also right on the ASX 300’s new record high.

So with the ASX 300 resetting its record today, it was inevitable that the Vanguard Australian Shares ETF followed suit.

The performance of their mutual underlying holdings has driven today’s new highs for both the ASX 300 and the ASX’s VAS ETF.

Take Commonwealth Bank of Australia (ASX: CBA), now the largest stock on the ASX 300 Index. It, too, hit a new record high of $133.50 a share this Wednesday. All four of the major ASX banks are now at multi-year highs.

BHP Group Ltd (ASX: BHP) isn’t having a great day, but CSL Ltd (ASX: CSL) is also just a touch off of its current 52-week high.

So it’s CSL and the four major banks that ASX investors can thank for the new Vanguard record.

This latest high caps off what has been a relatively successful year for this ASX ETF. VAS units are now sitting on a year-to-date gain of 6.04%, as well as a 10.4% rise over the past 12 months. Let’s now see if the Vanguard Australian Shares ETF can finally hit a three-digit unit price.

The post Here’s why the Vanguard Australian Shares Index ETF (VAS) just hit an all-time ASX high appeared first on The Motley Fool Australia.

More reading

• Top 10 most traded ASX ETFs in June
• 5 ways ASX shares investors define financial success
• Own the Vanguard Australian Shares Index ETF (VAS)? Here’s how much you’ll get paid today
• Should Aussies choose Vanguard Australian Shares Index ETF (VAS) or a term deposit for passive income?
• Buying shares and 5 other ways investors intend to spend tax cuts: report

Motley Fool contributor Sebastian Bowen has positions in CSL and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares have been riding high over the past 12 months. During this time, the banking major’s stock price is up 31.5% trading at $133.5 per share at the time of writing.

This is a 20% advantage over the S&P/ASX 200 Index (ASX: XJO) over the past year. The chart below shows that the trend took off around November.

However, some brokers believe the good times for CBA shares may be nearing an end, projecting a sharp decline in market value. Let’s dive into the details.

Are CBA shares overvalued?

Despite touching record highs of $133.5 today, E&P Financial Group thinks the stock is now fully valued.

Analyst Azib Khan reiterated his negative sentiment on CBA shares, noting the company might be “priced for over-perfection”. According to The Australian, Kahn said:

While the Australian major banks are generally priced for perfection, CBA is priced for over-perfection.

While we do not expect anything untoward in the upcoming result (14 August) to trigger a de-rate – particularly if CBA opts to release credit loss provisions – we see business lending asset quality risks building on the horizon.

CBA currently trades on a price-to-earnings ratio (P/E) of 22.8 times, meaning investors are paying nearly $23 for every $1 of the bank’s earnings.

In comparison, the P/E ratio for the iShares Core S&P/ASX 200 ETF (ASX: IOZ), which tracks the benchmark index, is 18.7 times. CBA shares trade at a premium to the benchmark.

Another concern of Kahn’s is CBA’s lower dividend yield, which is “the only one below the cash rate” among the major banks.

The analyst set a target price of just $80 for CBA shares, implying an eye-watering 40% downside potential from the current price of $133.5.

What are other analysts saying?

It’s not just E&P that’s bearish on CBA shares. The consensus of analyst estimates rates it a sell, too, according to CommSec.

Bell Potter has a sell rating on CBA shares due to its high valuation relative to growth potential. According to my colleague Kate, the broker suggests investors consider taking profits. It cited limited growth prospects in a competitive banking sector.

L1 Capital also signalled CBA’s expensive valuation and lack of earnings growth in its June investment letter, indicating that the current price may not be justified by the fundamentals.

The bank’s reported net profit after tax (NPAT) of $5 billion was down 3% year over year in H1 FY24. Moreover, according to S&P Capital IQ, analysts expect earnings-per-share (EPS) to grow by just circa 1% per year from $5.76 to $5.91 by FY26.

Meanwhile, Goldman Sachs reiterated its sell thesis on CBA shares in a June note. Again, valuation was the cause for concern. Analysts at Goldman Sachs wrote:

We are Sell-rated on CBA given: While CBA’s volume momentum in housing lending has improved and BDDs charges remain benign, we don’t think this justifies the extent of CBA’s valuation premium to peers.

Foolish takeaway – what should investors do?

While CBA has delivered strong returns, its high valuation is raising concerns among the experts. Analysts from multiple firms suggest that CBA shares might be overvalued at current levels.

However, I’d point out that similar concerns were raised a year ago, and CBA still delivered substantial gains. Whether or not the fun is over depends on CBA’s fundamentals and the market’s overall sentiment.

Remember that past performance is never a predictor of future results, and conduct your own due diligence.

The post 40% downside! Broker values CBA shares at $80 — is the fun over? appeared first on The Motley Fool Australia.

More reading

• Westpac and the other big four bank shares are ‘due a correction’
• Is now the time to take some profits on CBA shares?
• Here’s the lithium price forecast through to 2027
• Prepare for earnings! What ASX bank share buyers can learn from Wells Fargo results?
• ASX 200 shatters record. Why it could still be ‘relatively cheap’ to invest

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 Goldman Sachs Group. 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.

The S&P/ASX 200 Index (ASX: XJO) is back on form on Wednesday and charging higher. In afternoon trade, the benchmark index is up 0.95% to 8,075.3 points.

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

Deep Yellow Limited (ASX: DYL)

The Deep Yellow share price is down 4% to $1.37. This follows broad weakness in the uranium industry today which has offset the company’s presentation at a mining conference today. In respect to the latter, Deep Yellow has talked up its significant production capability. It notes that “once in production, Deep Yellow will be the largest pure-play uranium producer on the ASX [with] production capacity 7Mlb+ per annum. Management also highlights the “significant exploration upside with potential to develop large scale, long-life projects within the Deep Yellow portfolio.”

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 17% to $1.67. Investors have been selling this counter drone company’s shares after its incredible rally ran out of steam. While DroneShield is growing at a rapid rate, its market capitalisation had ballooned to approximately $2 billion. This was arguably well ahead of fundamentals and has led to a combination of profit taking and then panic selling from investors. And while there has been talk of short selling, the available data at present shows that short interest is still extremely minimal.

Mount Gibson Iron Ltd (ASX: MGX)

The Mount Gibson Iron share price is down 10% to 38.7 cents. This follows the release of the iron ore miner’s quarterly update. Mount Gibson reported iron ore sales of 0.9 million wet metric tonnes (wmt) for the June quarter at an average grade of 65.2%. This brought its total sales for the year to 4.1 million wmt at a grade of 65.3%. This was near the upper end of its annual guidance of 3.8 million wmt to 4.2 million wmt. However, its costs came in higher than expected and it is forecasting a sharp decline in iron ore sales volumes in FY 2025.

Praemium Ltd (ASX: PPS)

The Praemium share price is down 9.5% to 47 cents. Investors have been selling this investment platform provider’s shares following the release of its quarterly update. This is despite the company reporting a 30% increase in total funds under administration to $57.4 billion. Praemium’s CEO, Anthony Wamsteker, was pleased with the quarter. He said: “The strong growth in FUA on VMAAS highlights the tremendous potential of that service. Our non-custodial capability remains market leading and represents a significant opportunity for Praemium.”

The post Why Deep Yellow, DroneShield, Mount Gibson Iron, and Praemium shares are falling appeared first on The Motley Fool Australia.

More reading

• What’s next for Droneshield stock after Tuesday’s 22% drop
• Big ASX news! DroneShield share price crashes 31%
• Top 10 most traded ASX shares and US stocks in June
• Are ASX small-cap shares back in vogue amid a big shift?
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended DroneShield and Praemium. 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.

A little-known ASX gold stock has made its shareholders very happy over the past eight trading days.

The company in question is Far East Gold Ltd (ASX: FEG), which has a current market cap of just $46 million.

Though that’s double what it was worth at the start of the month.

On 4 July, you could have bought shares in the junior ASX gold stock for 9.6 cents apiece. Earlier today, those same shares were changing hands for 20.5 cents, up 113.5%.

At the time of writing, shares are trading for 18 cents, up 5.9% in intraday trading.

Here’s what’s been spurring investor interest.

What’s sending the ASX gold stock soaring?

The Far East Gold share price certainly won’t have suffered from the surging gold price.

The yellow metal hit fresh all-time highs overnight, trading for US$2,474.5 per ounce. At the time of writing, that same ounce is fetching US$2,472.29. That sees the gold price up more than 20% so far in 2024 as investors up their bets of Federal Reserve interest rate cuts.

While that offers some nice support, the ASX gold stock got its supersized boost on Monday, 15 July.

That’s when the miner announced it had executed a Binding Term Sheet with PT Iriana Mutiara Idenburg to acquire up to 100% of the Idenburg gold project.

According to the release, Idenburg is an advanced, high-grade and highly prospective 95,280-hectare gold project, located in Indonesia’s Papua province.

Far East Gold noted that the same province hosts world-class multi-million-ounce gold and copper deposits. And Idenburg already benefits from more than US$25 million in historical exploration, including more than 5,500 meters of diamond drilling. Yet only 30% of the area has been explored in detail.

Commenting on the acquisition that saw the ASX gold stock soar 16.7% on Monday and gain another 21.4% on Tuesday, Far East Gold managing director Shane Menere said, “It is rare to find a project of such calibre with a substantial historical database of work completed by many of the world’s major gold miners.”

Menere added:

The main reason the project was not advanced further in the past was due to previous forestry classifications over the major prospect areas which restricted open cut mining. These restrictions have now been removed, paving the way for further development of this highly prospective project, which we know from previous exploration, has returned wide and high-grade gold intervals in multiple instances from surface…

We are very excited based on the extensive historical database of exploration work and many high-grade drill intercepts that demonstrate the potential for Idenburg to host a multi-million-ounce company maker’.”

With the past week’s share price surge, the ASX gold stock is back in the green for 2024, up 29%.

The post Have you heard of this ASX gold stock? It’s up 114% in 8 days! appeared first on The Motley Fool Australia.

More reading

• Why Deep Yellow, DroneShield, Mount Gibson Iron, and Praemium shares are falling
• Why Cettire, Core Lithium, Northern Star, and Step One shares are charging higher
• ASX 200 hits record high, UBS keeps end of year target steady
• Citi names these 3 ASX shares to buy now
• Zip shares frozen amid $267 million debt wipe plans

Motley Fool contributor Bernd Struben 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.

The S&P/ASX 200 Index (ASX: XJO) is having a strong session today. At the time of writing, the benchmark index is up 0.9% to 8,071.4 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are charging higher:

Cettire Ltd (ASX: CTT)

The Cettire share price is up 4% to $1.56. This follows the release of additional financial metrics relating to the online luxury products retailer’s performance in FY 2024. Cettire advised that gross revenue is expected to be $975 million to $980 million, up 81% to 82% year on year. This was driven by a 6% to 7% increase in average order value and a 64% jump in active customers to 692,000. Cettire’s shares remain down over 30% since this time last month despite today’s gain.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 9% to 12 cents. Investors have been buying this lithium miner’s shares following the release of its quarterly update. Core Lithium reported that it achieved record quarterly shipments of 33,027 dry metric tonnes (dmt) of spodumene concentrate during the three months ended 30 June. This was sold at an average price of US$1,078 per dmt, which is 16.5% higher than the prior quarter. However, all mining and processing activities are now suspended due to low lithium prices.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is up 4% to $14.55. Investors have been buying Northern Star and other ASX gold stocks today after the price of gold surged to a record high overnight. Traders were bidding the precious metal higher after the market started to price in a 100% probability of an interest rate cut by the US Federal Reserve in September. The S&P/ASX All Ords Gold index is up 2.7% at the time of writing.

Step One Clothing Ltd (ASX: STP)

The Step One share price is up 17% to $1.71. This online underwear retailer’s shares are racing higher today after it released a trading update for FY 2024. Step One revealed that it has returned to form and expects to report revenue of $84 million for the year. This is up 29% on FY 2023’s revenue and 16.3% on what it recorded in FY 2022. Growing even quicker was the company’s earnings before interest, tax, depreciation, and amortisation (EBITDA). Management expects its EBITDA to increase by 42% year on year to $17 million.

The post Why Cettire, Core Lithium, Northern Star, and Step One shares are charging higher appeared first on The Motley Fool Australia.

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