Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) is having a very strong session on Thursday. In afternoon trade, the benchmark index is up 1% to 7,893.8 points.

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

Hub24 Ltd (ASX: HUB)

The Hub24 share price is down 4.5% to $44.26. This decline appears to have been driven by the release of a broker note out of Citi. According to the note, the broker has downgraded the investment platform provider’s shares to a neutral rating with a $46.42 price target. The broker appears concerned that recent hiring data points to its rival overtaking it. It has also suggested that consensus estimates are too high.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is down 2.5% to $21.34. After an early gain, investors have sold down this investment platform provider’s shares. This follows the release of Netwealth’s fourth quarter update. Although it delivered solid quarter on quarter growth in inflows, some comments by management appear to have spooked investors. They said: “Positive market movements of FUA contribute to higher admin fee revenue, however, the impact is significantly diluted due to the structure of tiered administration fees and fee caps. In addition, many ancillaries are unimpacted by market movement. These factors when combined with the lower cash percentage, have resulted in a reduction in average revenue bps for the year, particularly in 2HFY2024.”

Pantoro Ltd (ASX: PNR)

The Pantoro share price is down 4% to 9.6 cents. Investors have been selling this gold miner’s shares following the release of a quarterly operations update. Management advised that production from the Norseman Gold Project for the quarter was 20,805 ounces. It also notes that quarter on quarter production and cashflow continues to build. However, investors will have to wait until later in the month before finding out its costs for the period.

WA1 Resources Ltd (ASX: WA1)

The WA1 Resources share price is down 8% to $17.26. This has been driven by the niobium explorer raising funds via a placement this morning. WA1 Resources revealed that it has received firm commitments for a placement of 3.5 million new fully paid ordinary shares to raise $60 million before costs. These funds are being raised at a placement price of $17.00 per new share, which represents a 9.8% discount to its last close price. The proceeds will be used to primarily support activities at the Luni deposit and the broader West Arunta Project.

The post Why Hub24, Netwealth, Pantoro, and WA1 shares are falling today appeared first on The Motley Fool Australia.

More reading

• Why is the WA1 share price crashing 12% today?
• Netwealth share price higher on record quarter
• Up 52% this year, why is this ASX All Ords stock halted today?
• Shares vs. property: Which stocks and suburbs delivered the best growth in FY24?
• This ASX mining share is surging 26% on ‘high-grade’ drilling results

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Hub24 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It looks like this Thursday will be a spectacular one for ASX stocks, but we already know it has been for Newmont Corporation (ASX: NEM) shares.

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has gained a strong 0.92%, pushing the index up to around 7,890 points. It was even better for the Australian share market earlier this morning, with the ASX 200 crossing over 7,900 points at one stage.

But ASX gold miner Newmont has done one better. Newmont shares are currently up a massive 3.98% at $67.72 each. Earlier today though, those same shares rose as high as $67.78. Not only is that a new 52-week high for Newmont, but an all-time high for its ASX-listed shares.

To be fair, it’s not really a 52-week high for Newmont because Newmont shares haven’t been on the ASX for 52 weeks just yet.

This company first hit the ASX boards back in October last year when Newmont acquired the old Newcrest Mining in full. So if we want to get technical, today’s high is more of a new 37-week high for Newmont. But that will not dent the euphoria that Newmont investors are probably feeling right now.

So why are Newmont shares rocketing so convincingly this Thursday?

Why have Newmont shares just clocked a new 52-week high?

Well, there’s been no fresh news out of Newmont itself today. Or indeed, for around a week. So we can rule that out.

But it’s not too hard to see where these gains are coming from. It’s been a spectacular day for most ASX gold shares today, thanks to a rising gold price.

As my Fool colleague James flagged this morning, gold had a stellar overnight performance, rising 0.45% to US$2,378.90 an ounce.

As a result, we are seeing other gold stocks booming alongside Newmont today.

Take the Perseus Mining Ltd (ASX: PRU) share price. It’s up a rosy 4.98% at $2.64 after hitting a new 52-week high of $2.66.

Regis Resources Ltd (ASX: RRL) is also on fire, presently up 2.97% at $1.90.

Red 5 Ltd (ASX: RED) shares have also bounced 2.44% to 42 cents each, while Northern Star Resources Ltd (ASX: NST) stock has gained 3.03% to $13.42.

So a great day for ASX gold stocks this Thursday.

We also have to factor in Newmont’s US listing. This company’s ASX shares represent a CHESS Depository Interest (CDI), meaning they are a reflection of the company’s primary American listing, just priced in Australian dollars.

Newmont’s US shares – listed as Newmont Corporation (NYSE: NEM) – rose by 3.58% on the US markets last night to US$45.46 each, likely also due to the galloping gold price.

With that gain under the belt upon the ASX market open this morning, Newmont shares were always going to do well today.

So that’s why the Newmont share price is having such a stunning day this Thursday. No doubt its investors are a happy bunch right now. But let’s see what happens next with this ASX gold share.

The post Big ASX news: Newmont shares hit new record high appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Monday
• Will ASX gold shares again outshine the market in FY 2025?
• Here are the top 10 ASX 200 shares today
• 2 ASX gold shares going gangbusters (and one crashing 11%!)

Motley Fool contributor Sebastian Bowen has positions in Newmont. 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 back on form and rising strongly on Thursday. In afternoon trade, the benchmark index is up 0.95% to 7,890.5 points.

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

Ora Banda Mining Ltd (ASX: OBM)

The Ora Banda Mining share price is up 14% to 40.5 cents. Investors have been buying this gold miner’s shares after it announced the approval of the development of the Sand King Underground mine. This mine is at the 100% owned Davyhurst Gold Project in the Eastern Goldfields of Western Australia. Today’s approval paves the way for the company to grow its gold production to 150,000 ounces per annum in FY 2026. As a comparison, it has provided production guidance of 100,000 ounces to 110,000 ounces for FY 2025.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is up 7% to $14.13. Investors have been buying Paladin Energy and other ASX uranium stocks in response to news of a new uranium extraction tax increase in Kazakhstan. There are concerns that this tax increase could impact supply growth from the world’s largest uranium producer, Kazatomprom. This appears to have given sentiment a big boost. It could have also led to short sellers buying back shares in a hurry to close their positions.

Seven Group Holdings Ltd (ASX: SVW)

The Seven Group share price is up 2.5% to $35.90. This morning, this investment company announced its dividend for the second half of FY 2024. According to the release, Seven Group’s board has declared a fully franked final dividend of 30 cents per share. This represents a 30% increase on the prior comparative period and brings its total dividends to 53 cents per share in FY 2024. Its final dividend has an ex-dividend date of 19 August 2024 and will be paid to eligible shareholders on 2 September 2024.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is up 12.5% to $19.74. This has been driven by some good news out of the United States. Telix revealed that the Centers for Medicare & Medicaid Services (CMS) has proposed changes for the Hospital Outpatient Prospective Payment System (OPPS) rule to improve payments for diagnostic radiopharmaceuticals for Medicare patients in the United States. This facilitates continued patient access after transitional pass through payment status expires. Management commented: “Telix welcomes the proposed rule, which will facilitate more equitable and reliable access to advanced imaging for all patients and support physicians to prescribe the most clinically appropriate solution.”

The post Why Ora Banda, Paladin Energy, Seven Group, and Telix shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Why is this ASX gold share racing 14% higher today?
• CBA and 7 other ASX 200 shares smashing new highs on Thursday
• Why is the Telix Pharmaceuticals share price rocketing 15% to a record high?
• Buy these ASX uranium stocks for big returns in FY25
• Here’s how the ASX 200 market sectors stacked up last week

Motley Fool contributor James Mickleboro has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. 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 jumped to $29.89 in early trade today, reaching a new 52-week high, surpassing previous levels reached in March 2024, as we can see on the chart below. But, this comes as ANZ faces a potential issue related to bond trading.

ANZ’s main earnings generator may be loans, but the business is also one of the large traders of Australian government bonds.  

According to reporting by the Australian Financial Review, ANZ supplied incorrect figures to the Australian Office of Financial Management (AOFM).

Alleged inflated bond trading figures

The AFR reported that ANZ overstated the value of government bonds it traded by over $50 billion in the last 12 months, which then allegedly boosted its prospects by winning mandates from the government to issue Commonwealth debt.

ANZ is meant to submit quarterly figures to the agency, and then AOFM selects the largest traders for issuances.

The bank reported to the AOFM that it had traded $137.6 billion in government bonds for clients in FY23. It then later disclosed that the correct figure was $83.2 billion.

This comes after the AFR reported earlier this year that the regulator was investigating ANZ’s trading for “allegedly manipulating the benchmark 10-year futures rate” when it was appointed as a manager for a $14 billion government bond sale last year. The AFR said this could have made ANZ a sizeable profit, paid multi-million bonuses to the traders, and cost taxpayers $80 million in extra borrowing costs.

Since then, ANZ has been excluded from some major government transactions. The ASX bank share normally makes between $5 million to $10 million a year by being the manager of large syndicated Australian government bond sales every year, and it makes much more for facilitating bond trades.

The AFR said its investigation had uncovered “multiple discrepancies” in the information reported to AOFM, which raised questions “about how widespread workplace and trading issues were within the bank’s markets division.”

It was reported by the AFR that an internal ANZ email attributed the mistakes to “spreadsheet errors” made by support staff in Bangalore. Other mistakes reportedly included counting repurchase transactions, incorrectly classifying particular sales in certain geographies, and assigning trades to the wrong business units. Another error was allegedly ANZ’s purchase of bonds directly from the AOFM through weekly auctions as domestic institutional investors.

The AFR reported that on 15 August, ANZ staff wrote to the AOFM and stated that the bank had “identified some deficiencies in the data around the volume, size and allocation previously provided.”

Time will tell what the fallout of this will be for the bank.

ANZ share price snapshot

Since the start of 2024, the ANZ share price has risen by 14%, compared to 3% for the S&P/ASX 200 Index (ASX: XJO).

The post ANZ shares hit 52-week high despite alleged $54 billion problem appeared first on The Motley Fool Australia.

More reading

• How much cash do you need to quit work and live off ASX dividend income?
• Are ASX 200 bank shares too expensive to buy right now?
• ASX 200 bank shares ‘don’t appear overly expensive’ compared to global peers: UBS
• ANZ shares smashed the ASX 200 return in FY24
• What is the outlook for ASX 200 dividend shares in FY25?

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.

The Ora Banda Mining Ltd (ASX: OBM) share price is having a day to remember on Thursday.

At the time of writing, the ASX gold share is up 14% to a 52-week high of 40.5 cents.

Why is this ASX gold share surging today?

Investors have been fighting to get hold of the gold miner’s shares today after it released an update on the 100% owned Davyhurst Gold Project.

According to the release, the ASX gold share’s board has approved the development of the Sand King Underground mine at the project in the Eastern Goldfields of Western Australia.

Management notes that this final investment decision (FID) aligns with the company’s strategic objective of owning and operating at least two high-grade mines and to achieve mid-tier status by the end of June 2025.

Ora Banda revealed that the mine, which will become the second to be developed by the company in less than two years, is expected to hit a steady state production level of approximately 60,000 ounces per annum in the June quarter of 2025. This puts it on course to achieve production of 150,000 ounces of gold in FY 2026.

The underground mine will require investment capital of ~$39 million, with a maximum cash draw down of ~$32 million. This will be funded by operating cashflows from Riverina Underground and existing cash.

The ASX gold share’s managing director, Luke Creagh, was pleased with the FID and the company’s production growth outlook. He said:

This is a very exciting time for the Company as the Ora Banda team has achieved a significant amount in a short period, finding two underground mines in less than two years since changing strategies – a success rate which also indicates the significant prospectivity of the belt.

The Riverina Underground continues to ramp up well and with the support of Sand King Underground, is expected to deliver 40% year-on year growth and ~34% reduction in AISC/oz over the same period. “Our DRIVE to 150 plan to target 150,000 ounces in FY26 firmly places us on the pathway to becoming a mid-tier gold producer, and the most exciting part is that we are only just getting started on unlocking this highly prospective and under-explored tenement package”

FY 2025 guidance

Also giving the ASX gold share a boost was the release of its guidance for FY 2025.

Management is forecasting production of 100,000 ounces to 110,000 ounces with an all-in sustaining cost (AISC) of A$1,975 per ounce to A$2,125 per ounce.

The post Why is this ASX gold share racing 14% higher today? appeared first on The Motley Fool Australia.

More reading

• Why Ora Banda, Paladin Energy, Seven Group, and Telix shares are charging higher
• Will ASX gold shares again outshine the market in FY 2025?
• Why Arafura Rare Earths, Ora Banda, Superloop, and Whitehaven Coal shares are rising today
• How these three ASX gold stocks soared above the rest in FY 2024

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 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 five most popular ASX shares purchased by Aussie investors over the 12 months to May have been revealed.

A survey of more than 2,000 Australian investors conducted by online trading platform Stake reveals four exchange-traded funds (ETFs) and an ASX lithium share attracted the most investment over the period.

Let’s check out the results.

Top 5 ASX shares purchased by Aussie investors

1/ Vanguard Australian Shares Index ETF (ASX: VAS) 

The Vanguard Australian Shares Index ETF is an index-based ETF that tracks the performance of the S&P/ASX 300 Index (ASX: XKO). This means VAS ETF investors have exposure to some of the biggest ASX shares on the market. These include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia Ltd (ASX: CBA), CSL Ltd (ASX: CSL), and Wesfarmers Ltd (ASX: WES).

The VAS ETF is trading at $97.60 per unit today, up 0.94%.

2/ iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is an index-based ETF that tracks the performance of the 500 largest United States companies comprising the S&P 500 Index (SP: .INX). These include the ‘Magnificent Seven’ stocks, such as Microsoft Corp and Nvidia Corp, and other superstar shares like GLP-1 medicine maker Eli Lilly And Co.

The IVV ETF is among the 10 cheapest ASX ETFs on the market, and is $55.54 per unit today, up 0.78%.

3/ Vanguard Msci Index International Shares ETF (ASX: VGS)

The Vanguard Msci Index International Shares ETF tracks the return of the MSCI World ex-Australia (with net dividends reinvested). So, there are no ASX shares involved, but you do get exposure to about 1,500 companies from 23 developed countries. They include the US, United Kingdom, Japan, Canada, France, and Switzerland. That’s some nice geographical diversification in a single trade!

The VGS ETF is trading at $124.91 per unit today, up 0.82%.

4/ Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF tracks the performance of the technology-heavy NASDAQ-100 Index. Betashares investment strategist Tom Wickenden says the Nasdaq 100 is full of innovation stocks, including those involved in artificial intelligence (AI), and innovation will be a key factor driving shareholders’ returns in the future. Here are two fun facts you may not know about NDQ ETF.

The NDQ ETF is trading at $45.44 per unit today, up 0.73%.

5/ Pilbara Minerals Ltd (ASX: PLS)

ASX lithium share Pilbara Minerals has lost 41% of its value over the past 12 months. This is primarily because lithium commodity values have plunged, resulting in most ASX lithium shares taking a dive.

The Pilbara Minerals share price is $2.97, up 1.02%.

The post The 5 most popular ASX shares bought by investors appeared first on The Motley Fool Australia.

More reading

• Own iShares S&P 500 ETF (IVV) units? It’s payday for you!
• This top broker thinks Pilbara Minerals shares are done falling
• 5 excellent ASX ETFs to buy this month
• How did the iShares S&P 500 ETF (IVV) race ahead of the ASX 200 in FY 2024?
• Why Bowen Coking Coal, Clinuvel, Meteoric Resources, and Pilbara Minerals shares are falling

Motley Fool contributor Bronwyn Allen has positions in BHP Group, CSL, Commonwealth Bank Of Australia, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, CSL, Microsoft, Nvidia, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF and Wesfarmers. The Motley Fool Australia has recommended CSL, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Core Lithium Ltd (ASX: CXO) share price is surging higher today.

Shares in the All Ordinaries Index (ASX: XAO) lithium stock closed yesterday trading for 9.7 cents. In late morning trade on Thursday, shares are changing hands for 10.2 cents apiece, up 5.2%.

For some context, the All Ords is up 0.9% at this same time.

In a welcome turnaround, today’s gains see the embattled Core Lithium stock up 20% since last Wednesday’s close.

Here’s what’s spurring ASX investor interest today.

What’s boosting the Core Lithium share price?

Investors are bidding up the Core Lithium share price after the miner announced it had commenced reverse circulation (RC) drilling at its 100% owned Shoobridge Project, located in the Northern Territory.

The Shoobridge drilling campaign is part of Core’s FY 2025 exploration program.

Today’s announcement comes on the heels of the miner’s preliminary FY 2024 results, released yesterday.

Commenting on Core’s exploration plans following on those results, CEO Paul Brown said:

Our strategic focus will be on making Finniss a more robust operation in the future, and exploration is a key enabler of this.

In FY 2025, we will be drill testing priority targets around Finniss, potentially adding meaningful life to future lithium mining operations. We will also be advancing earlier stage, low multi-commodity exploration activities.

Today, the All Ords lithium stock announced that it is the first company to explore and drill the “prospective, potentially spodumene-rich, pegmatite systems” at Shoobridge for lithium.

Core also considers the area prospective for gold, with a known gold anomalism extending over a strike length of 4.5 kilometres. Uranium and base metals have also been found in the area.

Commenting on the commencement of the drill program that’s lifting the Core Lithium share price today, Brown said, “We are thrilled to start the first ever lithium drilling program at Shoobridge. This marks the start of an exciting FY25 exploration program for Core, and we look forward to delivering results that capture the value inherent in our tenement portfolio.”

Brown added:

We will be disciplined in our approach to exploration and pursue opportunities for meaningful mineral discoveries or with the potential for a high return on investment.

While we are firmly focussed on positioning the Finniss Lithium Project for a future restart, we are excited by projects such as Shoobridge that both support this objective and provide complementary growth opportunities.

The company highlighted that “a significant portion” of its FY 2025 exploration budget will go towards advancing and testing lithium targets with the goal of identifying substantial deposits within trucking distance of its Finniss lithium processing plant.

Despite the past week’s strong run, the Core Lithium share price remains down 89% over 12 months.

The post Up 20% in a week, why is the Core Lithium share price racing higher again today? appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, Encounter Resources, Red 5, and Regis Resources shares are storming higher
• Core Lithium share price leaps 9% as results catch short sellers by surprise
• Why did the Core Lithium share price crash 90% in FY 2024
• Guess which 2 ASX All Ordinaries shares were the best and worst performers of FY24?
• ASX lithium shares: Screaming bargains or falling knives?

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 back on form and roaring higher on Thursday.

At the time of writing, the benchmark index is up 0.95% to 7,890.6 points.

This follows a strong night on Wall Street driven by interest rate cut optimism. For example, the Dow Jones index rose 1.1%, the S&P 500 climbed 1%, and the Nasdaq stormed 1.2% higher. The latter two indices closed at new record highs.

Speaking of record highs, a number of ASX 200 shares are hitting new highs on Thursday. Let’s take a look at a handful that are setting records for their lucky shareholders today:

Aristocrat Leisure Limited (ASX: ALL)

The Aristocrat Leisure share price is pushing higher again on Thursday. This has seen the ASX 200 gaming technology share reach a new high of $52.09. This stretches its 12-month return to an impressive 40%.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price has hit a new record high of $130.30 this morning. This means that the shares of Australia’s largest bank are now up approximately 31% since this time last year. Incredibly, this is despite almost every major broker declaring this ASX 200 share as vastly overvalued at current levels.

REA Group Ltd (ASX: REA)

The REA Group share price has breached the $200 market for the first time. In morning trade, they have climbed to a record high of $200.50. The realestate.com.au operator’s shares have risen 40% over the past 12 months.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is on fire today thanks to some big news out of the United States. This has seen the radiopharmaceuticals company’s shares rocket higher and reach a new high of $20.16. Telix shares are now up approximately 80% since this time last year.

Xero Ltd (ASX: XRO)

The Xero share price has continued its run and hit a new record high of $141.49. This latest gain means the cloud accounting platform provider’s shares have risen around 19% over the last 12 months. Goldman Sachs thinks this run can continue. Earlier this month, its analysts reiterated their conviction buy rating with an improved price target of $180.00.

And the rest

Other ASX 200 shares that are scaling new heights today and making their shareholders smile are retail giant JB Hi-Fi Ltd (ASX: JBH), insurance broker Steadfast Group Ltd (ASX: SDF), and enterprise technology provider TechnologyOne Ltd (ASX: TNE).

The post CBA and 7 other ASX 200 shares smashing new highs on Thursday appeared first on The Motley Fool Australia.

More reading

• Why is the Telix Pharmaceuticals share price rocketing 15% to a record high?
• Which ASX shares could soar if AI falls into a $500 billion hole?
• Goldman Sachs names 1 ASX 200 stock to buy and 2 to hold
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Technology One, Telix Pharmaceuticals, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, REA Group, Steadfast Group, Technology One, Telix Pharmaceuticals, and Xero. The Motley Fool Australia has positions in and has recommended Steadfast Group and Xero. The Motley Fool Australia has recommended Jb Hi-Fi, REA Group, Technology One, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A2 Milk Co Ltd (ASX: A2M) shares are in the green today.

Shares in the S&P/ASX 200 Index (ASX: XJO) dairy stock closed yesterday trading for $6.82. In morning trade on Thursday, shares are swapping hands for $6.88, up 0.8%.

For some context, the ASX 200 is up 0.9% at this same time.

This comes after the company released an update on its voting intentions at today’s special Synlait Milk Ltd (ASX: SM1) shareholders’ meeting. That’s taking place at 2pm today, New Zealand time.

Here’s what’s happening.

A2 Milk shares in the green ahead of Synlait loan vote

A2 Milk shares are marching higher after the company said it has been in discussion with Synlait regarding the junior dairy stock’s recapitalisation plan. That plan includes a $130 million shareholder loan as well as Synlait’s proposed equity raising and concurrent refinancing of its bank facilities.

 A2 Milk said it “continues to have concerns and will engage in discussions with Synlait in the coming weeks”.

However, management confirmed that it would vote in favour of today’s resolution.

The Synlait Milk share price is going ballistic on the news, up a whopping 50% to 34.5 cents.

If you own A2 Milk shares, you also own a slice of Synlait. A2 Milk holds almost 20% of Synlait shares.

If shareholders vote in favour today, Synlait will receive the $130 million loan from Bright Dairy, which owns around 39% of Synlait shares. Bright Dairy is not allowed to vote on the proposal under New Zealand trading rules.

Synlait said if the resolution received the green light today, it would draw down the entire loan to meet its $130 million bank payment, due on 15 July.

On 25 June, Synlait chair George Adams said, “Synlait is now progressing at pace a series of structural initiatives to address the scale of challenges we face today.”

Adams added:

We are committed to resetting Synlait’s balance sheet, with the support of Bright Dairy, to ensure we return to a position where we can deliver the growth potential we see in our core Advanced Nutrition and Foodservice businesses.

Bright Dairy director Julia Zhu said, “We are deeply committed to Synlait, believing its assets and operations to offer significant value and opportunity within regional and global dairy markets.”

Zhu continued:

This $130 million shareholder loan facility is one part of Bright’s wider support to see Synlait return to a much stronger financial and operating position, as early as practicable in this economic cycle.”

With today’s intraday gains factored in, A2 Milk shares are up 37% over 12 months.

The post A2 Milk shares lift amid backing for $130 million Synlait loan appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Actinogen Medical, Karoon Energy, and Race Oncology shares are rising
• Why DroneShield, Paladin Energy, Red 5, and Synlait shares are falling
• Here are the top 10 ASX 200 shares today
• Guess which A2 Milk rival’s shares just rocketed 21% on US news!
• 2 cash-rich ASX companies to buy now

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 recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Telix Pharmaceuticals Ltd (ASX: TLX) share price is having a very strong session on Thursday.

In morning trade, the radiopharmaceuticals company’s shares are up 15% to a new record high of $20.16.

Why is the Telix Pharmaceuticals share price rocketing?

The catalyst for this strong gain has been the release of a very positive announcement this morning relating to its United States business.

According to the release, the company stands to benefit from proposed changes announced by the Centers for Medicare & Medicaid Services (CMS).

These proposed changes are for the Hospital Outpatient Prospective Payment System (OPPS) rule to improve payments for diagnostic radiopharmaceuticals for Medicare patients in the United States, facilitating continued patient access after transitional pass through payment status expires.

Management notes that under the proposed changes, diagnostic radiopharmaceuticals, including its Illuccix product, will continue to be paid separately by the CMS for traditional Medicare Fee for Service patients in the hospital outpatient setting following the expiry of transitional pass-through payment status.

Another positive is that this would also apply to new diagnostic products being developed by Telix, if and when they are approved.

Why is this important?

Currently in the United States, the costs associated with diagnostic radiopharmaceuticals are packaged together into the payment for the nuclear medicine tests (scans).

The CMS is proposing refinements to this policy to improve the accuracy of overall payment amounts by paying separately for any diagnostic radiopharmaceutical with a per day cost greater than US$630.

The CEO of Telix Americas, Kevin Richardson, was pleased with the proposed changes and appears to believe it could be a boost to Illuccix demand. Richardson commented:

Telix welcomes the proposed rule, which will facilitate more equitable and reliable access to advanced imaging for all patients and support physicians to prescribe the most clinically appropriate solution. We commend the vision of CMS and the coalition, along with patient groups, for raising awareness about the necessity to reform the payment system to enhance patient outcomes and access.

Telix is committed to continued innovation in the field of radiopharmaceutical diagnostics to provide new solutions to further patient access, especially for underserved patient populations and in areas of high unmet clinical need.

Following today’s gain, the Telix Pharmaceuticals share price is now up a whopping 82% since this time last year. To put that into context, a $10,000 investment a year ago would have grown to become just over $18,000 today.

The post Why is the Telix Pharmaceuticals share price rocketing 15% to a record high? appeared first on The Motley Fool Australia.

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