The Dubber share price is down 25% to 41.5 cents. This follows the release of the call recording software provider’s audited results for FY 2022. Dubber shocked investors by revising its revenue lower by $10.3 million from unaudited levels to $25.3 million and increasing its costs by $8 million. The company’s CFO has resigned with immediate effect.
The Johns Lyng share price is down 13% to $5.78. The catalyst for this has been news that the building services company’s CEO, Scott Didier, has sold 4 million shares in the company. It appears as though the CEO received $6.25 per share, which equates to a total consideration of $25 million. The company explained: “This share sale has been undertaken to fund Mr Didier’s relocation and living expenses, including the acquisition of a family home in Denver Colorado, along with certain tax liabilities.”
The Seek share price is down 3% to $20.11. This may have been driven by a broker note out of Goldman Sachs this morning. According to the note, the broker has retained its sell rating and trimmed its price target on the company’s shares down to $20.70. It is worth noting that the Seek share price is now trading below this level.
The St Barbara share price is down 6.5% to 72 cents. Investors have been selling St Barbara’s shares after the gold price pulled back on Friday night amid concerns over rising interest rates. It isn’t just St Barbara that is falling today. The S&P/ASX All Ordinaries Gold index is down 4.2% this afternoon.
Motley Fool contributor James Mickleboro has positions in SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dubber Corporation and Johns Lyng Group Limited. The Motley Fool Australia has positions in and has recommended Dubber Corporation. The Motley Fool Australia has recommended Johns Lyng Group Limited and SEEK Limited. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and dropped deep into the red. At the time of writing, the benchmark index is down 1.5% to 6,662.6 points.
Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:
The Actinogen share price has jumped 28% to 12.3 cents. Investors have been buying this biotechnology company’s shares after it announced positive Alzheimer’s Disease clinical results. The new clinical results show that Actinogen’s Xanamem product had a therapeutic effect in patients with a biomarker-positive blood profile.
The Core Lithium share price is up 1% to $1.17. This follows news that Core Lithium has transitioned from being a lithium developer to a lithium miner following the official opening of its Finniss Lithium mine. This makes it the first operating mine in the Northern Territory and Australia’s only lithium mine outside Western Australia.
The Fortescue share price is up over 2% to $17.71. This is despite news that Morgans has downgraded the iron ore miner’s shares to a reduce rating and cut the price target of them to $14.50. However, it is worth noting that a number of materials shares are outperforming today.
The Galileo Mining share price has jumped 14% to $1.37. This morning this nickel explorer announced that four RC drill holes completed 400 metres north of the Callisto discovery have intersected disseminated nickel sulphide mineralisation up to 51 metres thick. Management notes that the results confirm Galileo’s geological model that the five kilometres of ground to the north of Callisto is highly prospective for new discoveries.
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.
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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.
Meta Platforms(NASDAQ: META), formerly Facebook, has been frustrated for the last 15 years by having to play by Apple‘s and Alphabet‘s rules on iOS and Android.
Meta’s first attempt to circumvent the duo’s smartphone dominance, the Facebook phone, ended as a dismal failure in 2013. But the company’s second bite at the apple has a much better chance of working.
Here is how Meta Platforms plans to disrupt the two smartphone empires.
Love at first sight
Meta founder Mark Zuckerberg first formed the seed of a plan to topple the iOS and Android empires after Google co-founder Sergey Brin introduced him to a Google Glass prototype on the sidelines of an awards ceremony. The Glass project was Google’s first attempt at augmented reality (AR), a technology that superimposes computer-generated visual content on a user’s view of the real world via a set of glasses. And Zuckerberg’s first look at Glass was love at first sight.
Once Zuckerberg got a pair and took a closer look at what the technology could do, it wasn’t long before he visualized his company creating its own smart glasses hardware platform, where it would be free from following other companies’ rules.
The platform of tomorrow
Facebook missed the birth of the mobile phone era. But once it was clear that the world was near the dawn of new computing technology, Zuckerberg began making aggressive bets.
His first bet was the acquisition of Oculus in 2014 for $2 billion. It was a promising small company developing virtual reality (VR), an interactive computer-generated simulation of a three-dimensional environment. When the company first announced the Oculus acquisition, Zuckerberg was quick to say that mobile is today’s platform, but the company was getting ready for the platforms of tomorrow.
Meta is relatively early in its VR opportunity, with massive growth ahead. Fortune Business Insights projects the global VR market to grow from $16.67 billion in 2022 to $227.34 billion by 2029, a compound annual growth rate of 45.2%.
Zuckerberg has an AR vision, too
While VR should grow into a massive market over the next decade, Apple CEO Tim Cook said in a 2016 interview with ABC News that he favors AR over VR and believes AR will eventually be the larger of the two.
You might then wonder why Zuckerberg did not pursue AR first. The answer is that VR technology was much further ahead than AR toward becoming a viable consumer product in 2014.
But in 2022, industry analysts believe the AR market is geared to take off. Market research company Insider Intelligence projects that this country’s AR market will grow to 89.4 million users by the end of 2022 and reach 100 million users in 2025 — 35.5% of all U.S. internet users.
And at the World Economic Forum earlier this year, CNBC reported that Nokia CEO Pekka Lundmark believes that smart glasses will replace smartphones by 2030, a growing belief among some tech executives. Should that occur, it could potentially end the iOS and Android chokehold on wireless mobile technology, a desirable scenario for Meta.
Consequently, Zuckerberg’s second bet is heavy investment in AR. Meta’s division that develops AR and VR products, Reality Labs, began introducing AR products in 2021. It started with Ray-Ban Stories, a limited-feature smart glass produced in collaboration with the EssilorLuxottica brand Ray-Ban. Users can take pictures and videos, listen to music, and take phone calls with these glasses.
Its full-featured AR is named Project Nazare, which will likely take many years to develop into a finished product. According to tech news website The Information, Meta wanted to release its first consumer version of Nazare in 2024. But it has since scrapped those plans, likely because of the souring global economy.
A cloudy short-term picture
In May, Reuters reported that Meta’s chief technology officer Andrew Bosworth told Reality Labs employees that it would not be able to afford some projects and that the company could postpone other projects. And things have only gotten worse since May.
Meta’s second-quarter total revenue declined 1% year over year due to unfavorable foreign exchange rates, the war in Ukraine, Apple’s iOS changes, weakness in e-commerce, and a sour economy. And Reality Labs had an operating loss of $2.8 billion in the quarter. Should the economy worsen, management could decide on further cutbacks. So there are reasons to avoid Meta’s stock, which include rumors that Apple will start releasing its AR/VR products in 2023, potentially jumping ahead of Meta.
However, Meta’s shares now trade at a trailing price-to-earnings (P/E) ratio of 11.6, close to a historic low — compensating investors for taking some risk. So if you are a long-term investor who believes in Zuckerberg’s vision, now might be a great time to grab a few shares. If the company successfully creates a smart-glass platform, today’s valuation could look low 10 years from now.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Foolâs board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Rob Starks Jr has positions in Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Meta Platforms, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Meta Platforms, Inc. 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.
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The Mineral Resources Limited (ASX: MIN) share price has outperformed the S&P/ASX 200 Index (ASX: XJO) by 35% so far this year.
And even better days could be to come if these experts are to be believed, with the company’s earnings reportedly tipped to boom over the coming years.
The ASX 200 company provides mining services, produces iron ore and lithium, and explores for gas in the Perth Basin.
It’s also outperforming the broader index today. The Mineral Resources share price is down 0.6% right now, trading at $71.65. Meanwhile, the index is tumbling 1.5%.
So, what are experts tipping for the company’s future? Let’s take a look.
ASX 200 miner’s EBITDA tipped to grow 87% by FY24
RBC Capital Markets is expecting big things for ASX 200 mining share, slapping it with a $77 price target, the Australian Financial Review reports.
But that’s not the least of it. The broker is said to be expecting major growth in the company’s earnings.
That’s been tipped to increase around 150% this fiscal year, with RBC Capital Markets reportedly expecting the company to post $2.5 billion of EBITDA, driven by its lithium segment.
That’s notably higher than that tipped by top broker Goldman Sachs. It expects the ASX 200 miner’s earnings to reach $2.3 billion this financial year.
Goldman Sachs also has a buy rating and a $69.50 price target on Mineral Resources shares.
Looking further into the future, RBC Capital Markets expects that, come financial year 2024, Mineral Resources’ earnings will have grown 87% on financial year 2022 levels.
That’s despite the broker’s bearish outlook for both lithium and iron ore prices. Analyst Kaan Peker was quoted by the AFR as saying:
[Mineral Resources] has positioned itself for multi-commodity production growth … which will underpin continued strong earnings generation, despite a forecast decline in lithium and iron ore prices.
Stock in the ASX 200 miner has gained 22% so far this year. It’s also 60% higher than it was this time last year.
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 positions in and has recommended Goldman Sachs. 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.
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The PolyNovo Ltd (ASX: PNV) share price is coming under pressure today as the S&P/ASX 300 Index (ASX: XKO) faces another sea of red.
At the time of writing, the PolyNovo share price has slid 5.7% to last change hands at $1.65 apiece.
Meanwhile, the ASX 300 index has slipped by 1.6% to 6,640 points.
But one PolyNovo director is seeing this weakness as an opportunity to pick up more shares. Let’s take a look.
PolyNovo chair pounces
Through an ASX release, we learned that PolyNovo chair David Williams has been on a share-buying spree today.
He’s indirectly purchased 115,000 PolyNovo shares on-market at an average price of $1.7231, splashing nearly $200,000 in the process.
Today’s purchase takes Williams’ total shareholding to 24.7 million PolyNovo shares, which are worth around $41 million at current prices. He owns roughly 3.7% of the company.
This isn’t the first time Williams has picked up PolyNovo shares this year. He went on a major buying spree in May and June, indirectly acquiring roughly 5.7 million PolyNovo shares on-market. He did so across 18 transactions, scooping up PolyNovo shares at average prices ranging from $0.87 to $1.27.
These moves have since proven to be savvy, with the PolyNovo share price sitting comfortably above these levels today.
Williams is a long-serving member of PolyNovo’s board, having first been appointed in 2014. He is also chair of fellow ASX healthcare shareMedical Developments International Ltd (ASX: MVP), in which he owns 10.7 million shares.
The company achieved its first-ever $5 million sales month, raking in $5.4 million in September. Across the first quarter, the company achieved record September quarter sales of $12.5 million, up 73% from $7.2 million in the prior corresponding period (pcp).
PolyNovo noted that growth accelerated in the US, delivering record quarterly sales of $10.4 million, up 71% from the pcp. Meanwhile, rest of world sales grew by 84% to $2.1 million.
PolyNovo share price snapshot
Despite today’s slump, PolyNovo is one of the rare ASX 300 shares sitting in the green this year.
The PolyNovo share price has gained 8% in the year to date. But zooming in to the last six months, PolyNovo shares have shot the lights out with a 57% gain.
The last month also tells a positive tale, with the PolyNovo share price racing 17% higher.
Motley Fool contributor Cathryn Goh 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 Medical Developments International Limited and POLYNOVO FPO. The Motley Fool Australia has recommended Medical Developments International Limited. 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 S&P/ASX 200 Index (ASX: XJO) is down 1.69% today, but one ASX biotech share is bucking the trend.
The Actinogen Medical Ltd (ASX: ACW) share price soared 56% in early trade before pulling back. The company’s share price is up 30% at the time of writing and is currently trading at 12.5 cents.
Let’s take a look at why this biotechnology company is having a good day.
Trial results
Actinogen shares are exploding today on the back of news on an Alzheimers Disease (AD) clinical trial.
The company advised of positive phase 2a clinical data from an AD biomarker study.
Xanamem had a therapeutic impact on patients with a biomarker-positive blood profile.
Xanamem is the company’s drug candidate to treat Alzheimer’s disease.
Patients who had elevated blood pTau showed a “clinically significant Xanamem effect on the CDR-SB endpoint”.
CDR-CB is a well known primary endpoint for trials in patients with early-stage AD, Actinogen said.
Actinogen highlighted that this means using this endpoint in future trials will be “straightforward and uncontroversial”.
Commenting on the news, CEO and managing director Dr Steven Gourlay said:
Xanamem has the potential to be a novel daily oral therapy for Alzheimer’s Disease and other conditions that could be safely used alone or in combination with other therapies.
The results affirm our confidence in the upcoming clinical trials that will confirm if Xanamem can make a significant improvement in the lives of patients and their families living with serious neurological and psychiatric conditions.
Actinogen share price snapshot
The Actinogen Medical share price has climbed 14% in the past year, while it has fallen 22% year to date.
For perspective, the ASX 200 has fallen nearly 9% in the past year and 10.5% in 2022.
This ASX biotech share has a market capitalisation of more than $224 million based on the current share price.
Motley Fool contributor Monica O’Shea 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.
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The Santos Ltd (ASX: STO) share price is down 1% today amid wider selling action which sees the S&P/ASX 200 Index (ASX: XJO) down 1.54% at this same time.
Despite today’s dip, Santos remains up an impressive 13.8% since the closing bell on 28 September.
With those kinds of gains already banked, has the Santos share price reached its top?
What are ASX energy investors considering?
The Santos share price has received some welcome tailwinds in 2022 from rising oil and gas prices.
While oil prices are down from multi-year highs set earlier this year, Brent is currently trading for US$97.46 per barrel, up from US$88.86 last Monday.
A good part of that lift is due to the latest production cuts announced by the Organization of Petroleum Exporting Countries and its allies (OPEC+) last week. That announcement sent the Santos share price marching higher.
As we reported on Thursday, the cartel agreed to reduce their combined oil production by two million barrels per day (mbpd). The supply cut, the biggest in two years, commences in November.
However, many analysts don’t see much further upside to oil prices in the year ahead. A stagnation could also stall the strong performance we’ve seen from the Santos share price.
Morgan Stanley, for example, forecasts Brent crude oil will be trading for US$100 per barrel in early 2023. While that’s significantly above the US$84 per barrel Brent was fetching at the end of September, it’s not much above current levels.
According to Morgan Stanley (courtesy of Livewire):
This quota reduction is somewhat at odds with global crude oil inventories that are already low, and mostly still trending lower. OPEC+ also mentioned a need to put a floor under prices in order to support investment levels, which it continues to argue are woefully too low.
CEO of Longview Economics Chris Watling is decidedly bearish on the outlook for oil prices in 2023.
“Despite the size of the cut, the oil price rally has been relatively muted, with WTI [West Texas Intermediate crude] currently trading at around its 50-day moving average,” he said in Livewire.
Watling continued:
Arguably the key reason is that, in reality, about half of the announced cut will actually be delivered. Only five OPEC+ members are at their production quota level… Every other OPEC+ member is already producing well below their quota and will not have to implement cuts… As such, based on the allocation of cuts to each member, the maximum cut is likely to be 1.1 mbpd.
Longview Economics also sees “significant supply surpluses” eventuating in 2023. “If our recession view is correct, global oil demand will likely fall faster than supply,” Watling said. “Overall, therefore, the outlook for oil prices remains bearish in 2023.”
That outlook also suggests the Santos share price may be approaching a medium-term top.
Santos share price longer-term
Taking a longer-term view, the Santos share price has gained 87% over the past five years. That compares to a 15% gain posted by the ASX 200 over the same period.
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.
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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.
Only a handful of companies have reached the trillion dollars in value mark, but that number will likely grow in coming years. As I set out to find companies that could reach a trillion-dollar valuation, I had a few requirements. The companies must have an extremely large addressable market, must have an identifiable moat to build on, and be growing and profitable today.
The three stocks that stood out to me are Taiwan Semiconductor(NYSE: TSM), Disney(NYSE: DIS), and Adobe(NASDAQ: ADBE).
Taiwan Semiconductor Manufacturing
There’s one chip manufacturer that’s more important than any other in the world today, and that’s Taiwan Semiconductor Manufacturing. The company is a third-party manufacturer for chip leaders like Apple(NASDAQ: AAPL), Nvidia(NASDAQ: NVDA), and dozens of other companies designing their own chips.
Designing a great chip is great, but someone has to make the chip, and that’s where Taiwan Semiconductor comes in.
You can see in the chart below that the company is now trading at just 13.2 times earnings, and has grown revenue and net income by 91.5% and 140.4% respectively in the last three years.
What’s fascinating about the company’s place in chip manufacturing is that there’s no clear competitor at the bleeding edge of manufacturing. Intel(NASDAQ: INTC) is years behind, GlobalFoundries(NASDAQ: GFS) is much smaller, and AMD(NASDAQ: AMD) has a more integrated business model. For chip companies that don’t own fabrication facilities, Taiwan Semiconductor is still the go-to manufacturer if you’re designing at the cutting edge.
Given the company’s strong strategic position, technology, growth, and profitability, I think this could be the first of these companies to reach $1 trillion in value.
Disney
The last five years haven’t been quite as smooth sailing at Disney. The company has seen cable connections decline, streaming has been an enormous investment, and the pandemic had a huge effect on both theaters and theme parks. But Disney is positioned for a decade of growth.
Disney now technically has more subscribers than Netflix(NASDAQ: NFLX) when you add together Disney+, ESPN+, and Hulu. So, it’s a leader in next-generation media distribution.
Investors haven’t liked the money being spent on streaming, but the payoff may be getting better very soon. Disney announced an advertising tier, but instead of offering a lower-cost version of Disney+ with ads, it is keeping the same $8 per month price but adding advertising, increasing the price to $11 per month if you want no ads.
Disney’s ability to create compelling content and then monetize it through what I call a waterfall of businesses — from the theater to streaming to merchandise to theme parks — is unmatched in media. The company needs to do well to reach a $1 trillion valuation by 2030, but I think it can get there.
Adobe
Adobe has long made valuable software for designers, but it’s now poised to become the operating system of the design and programming community if it can complete the acquisition of Figma.
You can see below that Adobe’s business of licensing software to creators has been a growth machine over the last decade. But it’s creating tools that people use to create assets, not a platform they’re using to collaborate on. That’s why the acquisition of Figma is a big deal.
You can see above that Adobe currently trades for 28.5 times trailing earnings, and Figma should help with future growth. But for Adobe to become a $1 trillion company, it needs to lean into Figma’s multi-user platform to become a real juggernaut. I think it can do that, pulling not only graphic designers but programmers, project managers, and many more into the Figma ecosystem. Don’t be surprised if products like Photoshop and Illustrator become add-ons to Figma, not the other way around.
Now that Adobe has a potential platform solution, the sky is the limit for the company’s value. That’s why I think this could be a $1 trillion company by the end of the decade.
Thinking big
There’s no guarantee any of these companies will reach the heights of a $1 trillion company, but they all have the foundation needed to get there. If management thinks big, these stocks could be trading near the most valuable companies in the world.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
Travis Hoium has positions in Apple and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe Inc., Advanced Micro Devices, Apple, Intel, Nvidia, Taiwan Semiconductor Manufacturing, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $57.50 calls on Intel, long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe Inc., long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, short January 2024 $155 calls on Walt Disney, short January 2024 $430 calls on Adobe Inc., short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Adobe Inc., Apple, Nvidia, and Walt Disney. 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.
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The Fortescue Metals Group Limited (ASX: FMG) share price is well and truly in the green on Monday despite the broader market’s suffering.
The S&P/ASX 200 Index (ASX: XJO) is down 1.52% at the time of writing following a tough Friday on Wall Street.
Fortunately, the Fortescue share price isn’t partaking in the market’s tumble. Instead, it’s up 1.96%, trading at $17.65.
So, what might be buoying the ASX 200 iron ore giant above a sea of red today? Let’s take a look.
Fortescue share price leads the ASX 200
The Fortescue share price is outperforming, along with many of the company’s peers in the S&P/ASX 200 Materials Index (ASX: XMJ).
The iron ore favourite is leading the ASX 200 at the time of writing. In second position is Sims Ltd (ASX: SGM) shares, posting a 1.48% gain, while Iluka Resources Limited (ASX: ILU) stock is the index’s third-best performer, gaining 1.39%.
It comes as little surprise, then, that the materials sector is one of the ASX 200’s best-performing sectors today. It’s fallen 0.98% right now.
Meanwhile, the broader market appears to be taking its lead from Wall Street, which tumbled amid the release of strong employment data on Friday. Such strength will likely see the Federal Reserve continue hiking rates.
The Dow Jones Industrial Average Index (DJX: .DJI) fell 2.1% in the final session of last week. Meanwhile the S&P 500 Index (SP: .INX) plunged 2.8% and the Nasdaq Composite Index (NASDAQ: .IXIC) tumbled 3.8%.
Sadly, the Fortescue share price still has a way to go before it reaches the green for 2022. The stock has dumped 10% since the start of this year.
Though, it’s still 18% higher than it was this time last year.
Meanwhile, the ASX 200 has fallen 12% year to date and 9% over the last 12 months.
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 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.
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After trading in the red for much of the day, the Core Lithium Ltd (ASX: CXO) share price has rebounded this afternoon.
At the time of writing, the lithium miner’s shares are up 1% to $1.16.
This compares favourably to the ASX 200 index and its 1.6% decline.
Why is the Core Lithium share price lifting?
Investors have been buying the company’s shares today after it officially transitioned from being a lithium developer to a lithium miner.
According to the release, the Finniss Lithium mine has officially opened today. This makes it the first operating mine in the Northern Territory and Australia’s only lithium mine outside Western Australia.
This is great news for shareholders given the sky high prices that fellow lithium miners Allkem Ltd (ASX: AKE) and Pilbara Minerals Ltd (ASX: PLS) have been reporting in recent months.
The release explains that the Finniss mine was formally opened by the Minister for Mining and Industry, with Core Lithium’s CEO, Chair, and members of the board also in attendance.
Management notes that this means that the company is on target to export Direct Shipping Ore (DSO) lithium by the end of this year. This follows the first sale of spodumene DSO product announced earlier this month.
Core Lithium’s CEO, Gareth Manderson, commented:
Core is bringing production online at a time of high lithium prices, strong global demand and constrained supply. The Core team has done a fantastic job quickly transitioning from discovery and exploration to construction and shortly supply of high-grade lithium concentrate to a global market in just six years.
The first four years of production from the Finniss Lithium project is already secured with approximately 80% sold to offtake partners, including Ganfeng Lithium and Sichuan Yahua who have provided tremendous support during our development phase.
