Category: Stock Market

Washington H. Soul Pattinson and Co Ltd (ASX: SOL) is a rather famous share on the S&P/ASX 200 Index (ASX: XJO). For one, it’s one of the oldest shares on the entire ASX. Soul Patts first opened its doors in the pre-Federation days of the 1870s and was first listed on the ASX way back in 1903.

Today, the company is known for its sizeable investment portfolio. Soul Patts now owns significant chunks of many other ASX businesses. Its largest holdings are in companies like Brickworks Ltd (ASX: BKW), TPG Telecom Ltd (ASX: TPG) and New Hope Corporation Limited (ASX: NHC).

But Soul Patts has been in expansion mode in recent years. Last year, it acquired the monstrous listed investment company (LIC) Milton Corporation. This resulted in the company taking over the multi-billion dollar portfolio of blue-chip shares that Milton used to run on behalf of its investors.

But it’s one of Soul Patt’s smaller positions in the spotlight today – Electro Optic Systems Holdings Ltd (ASX: EOS).

Electro Optic Systems has a shocker

Soul Patts informed the markets in July that it had built up a “substantial” position in Electro Optic Systems. As of 15 July, Soul Patts held approximately 10.14 million shares, giving the company a 6.21% stake in Electro Optic Systems in terms of voting power.

But, perhaps unfortunately for Soul Patts, Electro Optics Systems is having a very lousy day indeed today.

As my Fool colleague James reported this morning, the space and defence systems company has just reported its half-year earnings results. These included a 45% loss in revenues to $53.8 million and a ballooning net loss after tax of $99 million, a substantial increase from the previous loss of $11.7 million.

As a result, the Electro Optic Systems share price has now cratered a painful 25.6% or so today.

But in these results, Electro Optic Systems also revealed that Soul Patts had thrown the company a lifeline. Soul Patts has reportedly given Electro Optic Systems a $20 million working capital facility.

The company has agreed to refinance Electro Optic Systems’ Roadnight debt facility, which was due to expire on 6 September 2022. It has now extended the maturity date to 26 September 2022.

Electro Optic Systems “expects to seek further extensions” from Soul Patts. But it also notes there is no guarantee this will be granted.

Why is Soul Patts lending a hand?

So what might Soul Patts think about all of this? Well, it’s likely that management is not delighted with what Electro Optics Systems had to say today. However, the terms of the $20 million working capital facility are arguably very favourable to the company.

Soul Patts is charging Electro Optic Systems an interest rate of 15%. That’s with a maturity date scheduled for 12 months after the first drawdown.

The minimum in interest and fees Soul Patts will receive from this facility will be $6.9 million. That’s worth more than what Soul Patt’s stake in Electro Optic Systems is now valued at (just under $5.5 million).

So it could be for this reason that Soul Patts is lending a hand to Electro Optics Systems.

The post Why is ASX behemoth Soul Patts lending a hand to Electro Optic Systems? appeared first on The Motley Fool Australia.

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More reading

• Electro Optic Systems share price crashes 35% after first-half shocker
• Why this ASX 200 share could be a great way to indirectly profit from booming coal prices
• How I’d invest $50,000 in ASX dividend shares for retirement, if I had to start from scratch
• Why is the Electro Optic Systems share price frozen today?
• How I’d invest $20,000 in ASX shares today if I had to start from scratch

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Electro Optic Systems Holdings Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited and TPG Telecom 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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It’s another day of blue – or green – skies for ASX lithium stocks, with shares in many of the market’s favourites roaring higher.

While the S&P/ASX 200 Materials Index (ASX: XMJ) outperforms the broader S&P/ASX 200 Index (ASX: XJO), lithium stocks are leading the sector.

The Liontown Resources Limited (ASX: LTR) share price is taking out the top spot, gaining 8.1% to trade at $1.865.

Other winners include Lake Resources NL (ASX: LKE) – up 5.4% to $1.275, Allkem Ltd (ASX: AKE) – up 6.2% to $14.96, Pilbara Minerals Ltd (ASX: PLS) – up 6.2% to $4.195, and Core Lithium Ltd (ASX: CXO) – up 4.3% to $1.59.

In comparison, the ASX 200 is up 1% right now while the materials sector is lifting 1.8%.

So, what might be boosting ASX lithium stocks sky high on Thursday? Let’s take a look.

What’s driving ASX lithium stock sky-high?

There’s not a lot of news to help explain what’s going on with ASX lithium stocks today. Though, the sector has had a good week so far.

Of course, lithium fans will remember broker JP Morgan reportedly upped its price targets for both lithium and producer Pilbara Minerals earlier this week.

The broker also tipped demand for the battery-making material to continue, expecting a supply shortfall to last until 2025, The Australian reported.

That view was supported by Piedmont Lithium Inc (ASX: PLL) CEO Keith Phillips, who this week told Yahoo Finance:

There’s going to be a real crunch to get the material. We don’t have enough in the world to turn that much [lithium] production in the world by 2035.

We’re now in an era where everyone’s going to want an electric car. The car companies can’t make them fast enough, and people are now looking for the lithium they need for the batteries to go in those electric cars.

Indeed, the Federal Chamber of Automotive Industries (FCAI) revealed electric vehicle sales hit a new Australian record in August.

Battery-powered vehicles made up 4.4% of all cars sold in the nation last month. In fact, 3.5% of all cars sold in Australia in August were made by Tesla Inc (NASDAQ: TSLA).

All that, and likely more, might be bolstering sentiment for ASX lithium stocks this week, potentially culminating in today’s strong performance from shares involved in the material.

The post Why are ASX lithium stocks having such a stellar run today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• 2 ASX All Ordinaries shares that defied today’s sell-off to crack new highs
• 2 fantastic ASX growth shares to buy now according to analysts
• Why is the Lake Resources share price outperforming on Wednesday?

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 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.

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BHP Group Ltd (ASX: BHP) shares are having a tough time in 2022. Since the start of the year, the mining giant’s shares have lost 14% of their value.

This is particularly disappointing given some of the incredible gains that have been recorded in the resources sector.

For example, Allkem Ltd (ASX: AKE) and Pilbara Minerals Ltd (ASX: PLS) have seen their shares rise an impressive 34% and 19%, respectively, over the same period.

This has been driven by Allkem and Pilbara Minerals’ exposure to one of the hottest commodities in the world right now – lithium.

Do BHP shares provide lithium exposure?

As you might have guessed from the difference in their returns, BHP’s shares do not provide investors with exposure to the white metal.

Despite being a highly diversified miner with hands in many pies, the Big Australian has no interest in the lithium market.

While this is disappointing in the current environment where lithium demand is being tipped to outstrip supply for some time to come and keep prices sky high, the miner doesn’t expect this to last. Particularly given how lithium is among the most abundant elements on Earth.

According to an interview from earlier this year, courtesy of Bloomberg, the company’s Minerals Americas head, Ragnar Udd, said that BHP prefers its projects large, long-life, and scalable in commodities with differentiated cost curves.

In addition, as low-cost lithium deposits tend to come from brine around the lithium triangle in Argentina and Chile, it isn’t a good fit for the miner. BHP has committed to minimising use of continental water in drought-hit Chile.

Udd also expects that supply will eventually catch up with demand and put downward pressure on the high prices we are seeing today. He said:

“We recognize that at the moment there’s short-term supply-demand conversations. How that plays out over the next 20 or 30 years, I don’t think it will last.”

Time will tell if BHP lives to regret its lack of lithium exposure.

The post Do BHP shares give investors exposure to lithium? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 mining shares getting blasted on Wednesday?
• 2 fantastic ASX growth shares to buy now according to analysts
• Own BHP shares? Here’s how much the ASX 200 giant added to the Aussie economy in FY22
• What are brokers saying about the BHP share price?
• Here are the top 10 ASX 200 shares today

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It’s been a rough year so far for the Telstra Corporation Ltd (ASX: TLS) share price in 2022. The ASX 200 blue chip telco share started the year off at $4.22 a share. But today, Telstra is trading at $3.91. That means the company has lost a painful 7.35% over the past nine months or so.

The only good thing we can say about this fall is that it bests the broader S&P/ASX 200 Index (ASX: XJO). After the savage week we’ve seen, the ASX 200 is now down a nasty 10.7% since the start of the year. So Telstra shares are actually beating the market over the year to date.

This might come as a disappointment for ASX 200 investors. After all, 2021 saw the Telstra share price rise more than 40%. So this represents quite a change of pace.

So following this miserly performance in 2022, what could be next for Telstra shares? Are we seeing a compelling buying opportunity today? After all, Telstra just gave its investors the first dividend hike we’ve seen in years.

Well, yes. That’s the opinion of at least one ASX broker anyway.

Broker: Telstra share price is a buy today

As my Fool colleague James covered yesterday, ASX broker Morgans is eyeing Telstra off at the current price. The broker currently has an add rating on Telstra shares. That comes with a 12-month share price target of $4.60. If realised, that would represent a potential upside of almost 18% from where the shares are today.

Morgans liked what they saw in last month’s earnings report, which outlined a return to growth for the company after years of NBN-driven earnings displacement.

The broker is estimating that Telstra will deliver another year of 16.5 cents per share in dividends over FY23 as well.

So no doubt that will be a welcome assessment for Telstra shareholders today. But we shall have to wait and see if the company’s shares can deliver this 18% upside that Morgans is predicting.

In the meantime, the current Telstra share price gives this ASX 200 telco a market capitalisation of $45.18 billion, with a dividend yield of 4.22%.

The post The Telstra share price has gone backwards in 2022. Is now the time to pounce? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Brokers name 2 ASX 200 shares to buy for a retirement portfolio
• Should all ASX investors be buying defensive shares right now?
• Should you buy Telstra shares after the telco ‘comfortably turned the corner’?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation 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 Santos Ltd (ASX: STO) share price is down 1.2% in early afternoon trade.

Santos shares closed yesterday trading at $7.81 and are currently swapping hands for $7.72 apiece.

So, why is the S&P/ASX 200 Index (ASX: XJO) energy share under pressure?

What are ASX investors considering today?

The broader market is enjoying a welcome rebound today following a strong performance in US markets overnight, with the ASX 200 up 0.7% at time of writing.

But the energy sector is struggling, as witnessed by the 4.0% plunge in the S&P/ASX 200 Energy Index (ASX: XEJ).

This comes as crude oil prices retreated again overnight, pressuring the Santos share price.

West Texas Intermediate (WTI) crude is currently trading for US$82.74 per barrel. That’s down from US$87.39 on Wednesday and down from US$97.01 per barrel as recently as 29 August. WTI is now trading at its lowest levels since mid-January, a month before Russia’s invasion of Ukraine.

International benchmark Brent crude has suffered similar falls. Brent crude is currently trading for US$88.71 per barrel, down from $93.39 on Wednesday. On 29 August, a barrel of Brent crude was fetching US$105.09.

Oil prices, and by connection, the Santos share price, are sliding as investors eye a possible recession in the United States, Europe and other top economies, which would diminish demand for fuel.

There are also concerns that China’s COVID-zero policies, which are seeing major population centres locked down, will crimp China’s growth outlook and oil demand.

Crude prices have slipped despite Monday’s announcement by OPEC+ to reduce the cartel’s output.

Santos share price snapshot

Despite today’s slide, the Santos share price remains up a healthy 16% in 2022. That compares to a year-to-date loss of 11% posted by the ASX 200.

Santos also pays a 2.9% trailing dividend yield, unfranked.

The company was a clear winner of soaring oil and gas prices in the first half of the year, reporting an 85% year-on-year leap in revenue.

The post The Santos share price is under pressure today. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Why has the oil price been so volatile lately?
• 5 things to watch on the ASX 200 on Thursday
• Why is the Santos share price slipping on Wednesday?
• ‘We would like to see faster progress’: ASX 200 energy shares on notice
• How are ASX 200 energy stocks performing on Tuesday?

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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Lovisa Holdings Ltd (ASX: LOV) has had a good run lately, culminating in news the share will be added to the S&P/ASX 200 Index (ASX: XJO) later this month.

Its inclusion in the iconic index comes after the jewellery retailer posted outwardly epic full-year earnings last month. Indeed, the company more than doubled its final dividend.  

At the time of writing, the Lovisa share price is $23.48, 2.09% higher than its previous close.

For context, the broader market is in the green. The All Ordinaries Index (ASX: XAO) is up 1.04% right now, while the ASX 200 has lifted 0.96%.

Let’s take a closer look at all that’s been going right for the ASX retail favourite.

This dividend-paying favourite will soon be an ASX 200 share

The Lovisa share price has been on the up and up lately after the company doubled its dividend and was flagged for inclusion in the ASX 200 index – all in just a few weeks.

The stock has gained 18.6% since it released its latest earnings last Monday.

The company’s revenue lifted 59% year-on-year in financial year 2022 while its after-tax profit more than doubled to come in at nearly $60 million.

On the back of such a strong performance, Lovisa declared a 37 cent per share fully-franked final dividend.

That marked a 105.5% improvement on its previous 18 cent final dividend and brought its full-year payout to 74 cents per share – a 94.7% year-on-year increase.

It’s also worth noting the company won’t trade ex-dividend until Wednesday. That means market watchers have until then to snap up Lovisa shares and still receive the company’s upcoming dividend.

And those holding the share will soon see their investment included in the ASX 200. The company will be added to the index prior to market open on 19 September.

Its inclusion will likely increase demand for the company’s stock.

That’s because funds tracking the index will be forced to snap up its securities. As per the law of supply and demand, the Lovisa share price will likely rise in turn.

The post Guess which soon-to-be-ASX 200 share doubled its dividend in August appeared first on The Motley Fool Australia.

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More reading

• Morgans names 2 of the best ASX growth shares to buy
• Analysts say these exciting ASX growth shares have at least 20% upside
• 3 ASX All Ords shares smashing new highs on Monday
• Why Allkem, Capricorn Metals, Lovisa, and Pilbara Minerals shares are rising today
• Here’s why the Lovisa share price leapt 8% on Monday

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Lovisa Holdings Ltd. 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 Megaport Limited (ASX: MP1) share price is soaring today in what’s shaping up as a stellar day for ASX technology shares.

Shares in the global software company are currently trading at $8.14 each, a 10% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 1% higher at the time of writing.

Let’s take a look at what is likely impacting the Megaport share price.

Technology shares rise

The Megaport share price is rising more than many stocks today, but it is not alone in the tech sector. The Block Inc (ASX: SQ2) share price is up 4.02%, while Brainchip Holdings Ltd (ASX: BRN) is 5.43% ahead and Pivotal Systems Corporation (ASX: PVS) is surging 20.5%. Life360 Inc (ASX: 360) is also jumping 10.84% while Appen Ltd (ASX: APX) is a more modest 1.07% in the green.

The S&P/ASX All Technology Index (ASX: XTX) is 2.42% ahead today, while the S&P/ASX 200 Information Technology Index (ASX: XIJ) is lifting 2.39%.

ASX technology shares, including Megaport, are rising after the technology-heavy NASDAQ lifted higher in the US overnight.

The Nasdaq Composite Index jumped 2.14%. Investors reacted positively to comments from the US Federal Reserve that may provide a clue on the direction of the Fed’s monetary tightening plans.

In comments cited by CNBC, US Fed vice chair Lael Brainard warned there could be “risks associated with overtightening”. She said:

At some point in the tightening cycle, the risks will become more two-sided.

The rapidity of the tightening cycle and its global nature, as well as the uncertainty around the pace at which the effects of tighter financial conditions are working their way through aggregate demand, create risks associated with overtightening.

Australian technology shares tend to follow in the footsteps of their US counterparts. Also, Megaport has a significant revenue base in the United States. In the company’s latest financial results, Megaport said the US “accounted for 51% of group revenues in June 2022″.

Megaport share price snapshot

The Megaport share price has fallen 56% in the year to date and 53% in the past year.

However, in the past week, Megaport shares have risen 12%.

Megaport has a market capitalisation of about $1.3 billion based on its current share price.

The post Megaport share price soars 10% as ASX tech shares trump on Thursday appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 tech shares having such a top run on Thursday?
• Why is the Block share price charging higher today?
• Here are the top 10 ASX 200 shares today
• Why has the Block share price dumped 24% in a month?
• What is the highest BrainChip shares have ever been?

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 positions in and has recommended Appen Ltd, Block, Inc., Life360, Inc., and MEGAPORT FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended MEGAPORT FPO. 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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Thursday is proving to be a rough session for the Beach Energy Ltd (ASX: BPT) share price.

The oil and gas producer is sinking alongside the value of the black liquid.

The Beach Energy share price is trading at $1.64 at the time of writing. That’s 1.8% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is trading higher today, gaining 0.89% right now.

Let’s take a closer look at what’s going wrong for the ASX 200 energy giant’s stock.

Beach Energy share price tumbles alongside oil

The Beach Energy share price is suffering alongside many of its ASX 200 peers today after energy commodity prices tanked overnight.

The S&P/ASX 200 Energy Index (ASX: XEJ) is down 3.67% right now, with Beach Energy coming in as its second-worst performer.

Taking the unfortunate lead is none other than Woodside Energy Group Ltd (ASX: WDS). Its share price has plummeted 6.42% right now.

Their suffering follows a disastrous night for oil prices.

The Brent crude oil price fell 5.2% to US$88 a barrel while most of Australia slept – marking a new seven-month low.

Meanwhile, the US Nymex crude oil price dumped 5.7% to hit US$81.94 a barrel – its lowest point since January.

The downturn was driven by recession concerns bolstered by disappointing Chinese trade data, Reuters reports.

It was reportedly worsened by a strengthening of the US dollar against the Japanese yen and the pound sterling. That makes oil more expensive for those trading in the currencies.

Joining the Beach Energy share price in the red today are fellow energy shares Santos Ltd (ASX: STO), Worley Ltd (ASX: WOR), and Viva Energy Group Ltd (ASX: VEA). They’ve fallen 1.3%, 0.75%, and 0.36% respectively.

Most other ASX 200 energy shares are trading in the green at the time of writing.

The post Why is the Beach Energy share price sinking on Thursday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Friday
• Blocked again: Here’s what happened to ASX 200 shares last time the Suez was cut off
• 5 things to watch on the ASX 200 on Wednesday

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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The Xero Limited (ASX: XRO) share price has returned to form on Thursday.

In early afternoon trade, the cloud accounting platform provider’s shares are up 3.5% to $87.00.

Why is the Xero share price rising?

There have been a couple of catalysts for the rise in the Xero share price on Thursday.

The first has been a rebound in the local tech sector following a strong night of trade on Wall Street’s NASDAQ index.

For example, at the time of writing, the S&P/ASX All Technology Index is up a sizeable 2.4%.

Bullish broker note

Also giving the Xero share price a lift has been a broker note out of Goldman Sachs this morning.

According to the note, the broker has retained its buy rating and $111.00 price target on the company’s shares.

Based on the current Xero share price, this implies potential upside of almost 28% for investors over the next 12 months.

What did the broker say?

Goldman was pleased with what it heard at the latest Xerocon event in Sydney this week.

One of the items the broker highlighted was management’s commentary on the underperforming UK business. It explained:

Xero noted the weaker than expected UK sub growth was partly due to the slower than expected MTD impact, and partly from the restructuring/go-to market changes. However Xero noted that business revenue growth remains on track, and the company is focused on optimizing for the best long-term mix between subscriber and ARPU growth. Finally it was noted that the UK team understands what is happening and has a good handle on addressing the issues.

Another positive was the reception from partners to Xero’s 15% app store commission charge. Goldman said:

Commentary was supportive of Xero, with the 15% app-store fee well below distribution costs/commissions in other industries. Ecosystem partners had varying degrees of dependence on Xero for distribution, with direct sales a key focus for some, while some payment partners such as GoCardless (who operate in 30 countries) estimated c.25% of total volume was from Xero – we note the company recently (Feb-22) estimated it had > US$25bn in annual payments.

All in all, the broker remains positive on the company and continues to forecast strong growth over the medium term.

The post Why the Xero share price is racing higher and could keep climbing appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 tech shares having such a top run on Thursday?
• 5 things to watch on the ASX 200 on Thursday
• Financial powerhouse: Why I think these stats make Xero shares irresistible
• ASX 200 tech shares are getting hammered on Monday. Here’s why
• Up 20% in 2 months, is the Xero share price a buy 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 De Grey Mining Limited (ASX: DEG) share price is in the green today. The explorer this morning posted prefeasibility study outcomes for its Mallina gold project in Western Australia.

Shares of De Grey Mining currently trade for 94.5 cents, up 2.72%, after peaking nearly 6% in early morning trade.

Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) is also off to a good start this morning, up 1.45%.

Let’s look at the highlights of the ASX gold miner’s study.

Prefeasibility study outcomes

The prefeasibility study followed a scoping study completed last year for its key financial outcomes and assumptions. The prefeasibility study upgraded these ratios significantly.

The company announced:

• Life of mine up to 13.6 years from 10 years
• Average processed grade up to 1.6 g/t Au from 1.4 g/t Au
• Ore tonnes mined up to 136 metric tonnes from 100 metric tonnes
• Recovered gold up to 6.4 million ounces from 4.3 million ounces
• EBITDA for the life of mine up to $7.1 billion from $4.8 billion
• Total pre-production capital costs up to $1.05 billion from $893 million

De Grey also announced that its maiden Hemi Reserve has 5.1 million ounces of gold at a grade of 1.5g/t Au, which it says is “one of the largest and highest grade maiden reserves in recent decades”.

De Grey managing director and CEO Glenn Jardine said:

Total production has increased by nearly 50% from the scoping study to 6.4Moz with the annual gold production rate increasing by around 25% to 540,0000zpa over the first ten years. The increased production has been achieved at increased levels of JORC measured and indicated resources within the production profile averaging clase to 9096 over the first ten years of production compared with 70% in the scoping study. In addition, the Company saw increased resource grade at most Hemi deposits from resource definition drilling conducted over the past tweive months, particularly at Diucon and Eagle where the average combined resource grade increased by over 30%

De Grey share price snapshot

The company share price is down around 22% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is also down year to date, but less at a 9% loss.

At the current share price, De Grey Mining presides a market capitalisation of $1.29 billion.

The post Why is the De Grey share price rushing higher on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today
• Guess which ASX 200 company bought over $65 million of De Grey shares in August
• These are the 10 most shorted ASX shares

Motley Fool contributor Matthew Farley 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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