Category: Stock Market

The Bega Cheese Ltd (ASX: BGA) share price is edging higher this afternoon. This comes after the Australian manufacturer saw a massive buy-up of its shares today from Fortescue CEO Andrew Forrest.

At the time of writing, Bega Cheese shares are up 3% at $5.49 apiece.

Cue the cheese jokes…

Fortescue CEO carves his slice of Bega

Under Forrest’s investment company, Tattarang Agrifood Investments, more than 20 million shares in the company have been secured, amounting to more than $108 million.

The massive order was placed on 10 November and was finalised yesterday.

This amounts to a 6.61% stake in the company — making Forrest the fourth largest shareholder behind Ethical Partners Funds Management, Fil Investment Management Australia, and Vinva Investment Management.

This comes following a trading update given by Bega Cheese on 23 December, reporting strong local and international demand, and normalised earnings before interest, taxes, depreciation, and amortisation (EBITDA) for FY22 to be between $195 million and $215 million (FY21 was $145 million).

Despite alternative milks becoming ever more popular, and with the company reporting costs and supply chain disruptions due to the COVID-19 pandemic, Bega Cheese remained positive in its report, with product goals “on target”.

However, the Bega Cheese share price dropped by around 12% on the release of the news.

Bega Cheese share price snapshot

Bega Cheese is one of the better-performing stocks today, climbing as high as $5.56 earlier in the day.

The Bega Cheese share price has seen a fairly stable year, seeing an increase of almost 7%.

The manufacturer has a market capitalisation of more than $1.5 billion. It has over 300 million shares issued and a price-to-earnings ratio (P/E) of 20.

The post Why is the Bega Cheese (ASX:BGA) share price jumping today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CBA rises, Sandfire’s MATSA update
• Why Anteotech, Bega Cheese, Humm, and Syrah shares are racing higher
• These were the worst performing ASX 200 shares last week
• Is the Bega (ASX:BGA) share price a buy after crashing 10%?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Alice de Bruin 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3mIqmYz

If you’re wanting to invest in the small side of the Australian share market, then the three small caps listed below could be worth a closer look.

All three have been given buy ratings and tipped for big things in the future. Here’s what you need to know about them:

Alcidion Group Ltd (ASX: ALC)

The first small cap ASX share that has been given a buy rating is Alcidion. It is a healthcare technology company behind a range of solutions including Patientrack. It helps clinicians know a patient’s status in real-time. Patientrack uses predictive algorithms to support time-critical care, allowing doctors to intervene and prevent patient deterioration faster than ever before. Demand has been growing for its solutions from a range of international healthcare institutions, which has been underpinning strong revenue growth.

Bell Potter currently has a buy rating and 45 cents price target on Alcidion’s shares.

Nitro Software Ltd (ASX: NTO)

Another small cap ASX share to look at is Nitro Software. It is the fast-growing document productivity software company behind the increasingly popular Nitro Productivity Suite. This suite provides integrated PDF productivity and electronic signature tools to businesses of all sizes. In addition, the company recently entered into an agreement to acquire Connective NV for €70 million (~A$110 million). Connective is Belgium’s leading eSign software-as-a-service (SaaS) business, with a fast-growing market share in France and customers in 11 other European countries. This puts Nitro in a strong position for growth in a total addressable market estimated to be worth $28 billion per year.

Bell Potter is also very positive on Nitro Software. It currently has a buy rating and $4.50 price target on its shares.

Volpara Health Technologies Ltd (ASX: VHT)

A final small cap that is rated as a buy is Volpara. It is a provider of breast imaging analytics and analysis products that improve clinical decision-making and support the early detection of breast cancer. Demand for its offering has been growing strongly in recent years and has supported stellar revenue growth. This continued during the first half of FY 2022, with Volpara reporting subscription revenue growth of 35% to NZ$11.8 million. This is still only a fraction of its US$750 million addressable market in just breast cancer screening. Volpara is also now expanding into the US lung cancer screening market with its RevealDx and Riverain integrations.

Morgans currently has an add rating and $1.87 price target on the company’s shares.

The post 3 exciting small cap ASX shares rated as buys appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy in 2022
• Analysts say these small cap ASX shares could be going places in 2022
• Experts rate these 2 ASX healthcare shares as buys in 2022
• 2 ASX shares to buy and hold for 10 years+
• 3 ASX shares now bargains after a nightmare November

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. owns and has recommended Alcidion Group Ltd and VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Alcidion Group Ltd and Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/348ffBP

Given that many brokers are taking a well-earned break over the holiday period, broker notes aren’t being published as regularly as normal.

In light of this, listed below are a few recent broker recommendations that are still very relevant today. Here are three ASX shares rated as sells:

DEXUS Property Group (ASX: DXS)

According to a note out of Citi, its analysts have retained their sell rating and $9.54 price target on this property company’s shares. While Citi acknowledges that a number of the DEXUS’ peers have recently announced strong updates, it isn’t in a rush to change its rating. The broker has previously flagged potential for further weakness in office rental markets, which it feels is likely to feed into office asset pricing. The Dexus share price is trading at $11.13 on Thursday.

Insurance Australia Group Ltd (ASX: IAG)

A note out of Morgan Stanley reveals that its analysts have downgraded this insurance company’s shares to an underweight rating and cut their price target on them to $3.75. Morgan Stanley has concerns over IAG’s margin outlook and ability to hold onto its market share. In light of this, it feels investors should stay away from the company’s shares. The IAG share price is fetching $4.36 at the time of writing.

Qantas Airways Limited (ASX: QAN)

Analysts at Credit Suisse have retained their underperform rating and $4.10 price target on this airline operator’s shares. This followed the release of Qantas’ trading update. Credit Suisse suspects that Qantas could now report a greater than expected loss in FY 2022 of ~$1.6 billion. This is due to the emergence of the omicron variant and the prospect of the international travel recovery being delayed. The Qantas share price is trading at $5.02 on Thursday.

The post Brokers name 3 ASX shares to sell appeared first on The Motley Fool Australia.

More reading

• Why are Transurban (ASX:TCL), Dexus, and Mirvac shares tumbling?
• Why is the IAG (ASX:IAG) share price diving in December?
• How are ASX 200 travel shares faring over the holiday season?
• Is the IAG (ASX:IAG) share price too cheap to ignore?
• ASX travel shares in focus on global flight cancellations

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 owns and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3mGfUk8

The Webjet Limited (ASX: WEB) share price has been struggling this month. Meanwhile, that of Helloworld Travel Ltd (ASX: HLO) has surged higher.

Having ended November trading for $2.23, Helloworld’s shares are now swapping hands for $2.52. That represents a 13% gain.

However, the Webjet share price has slumped over the same period, falling almost 4% to trade at $5.28.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 3.6% over the course of December.

So, what’s been weighing on the Webjet share price and buoying Helloworld’s stock? Let’s take a look.

Why is the Helloworld share price gaining as Webjet’s falls?

The Webjet share price has been struggling over December as the company’s short interest remains high.

As of The Motley Fool Australia’s most recent weekly short-selling breakdown, 8.8% of its shares were in the hands of short-sellers. Though, that figure has been falling over recent weeks despite no news being released by the company.

Perhaps, the market’s confidence the Omicron COVID-19 variant won’t result in another wave of global lockdowns might be increasing.

Particularly, since Prime Minister Scott Morrison declared the country is “not going back to lockdowns” last week.

Still, Webjet’s stock hasn’t bounced back from its unexplained mid-December slump.

Meanwhile, the Helloworld share price surged 16% on 15 December when the company announced it’s undergoing a $175 million asset sale.

It is selling its corporate and entertainment travel businesses in Australia and New Zealand to Corporate Travel Management Ltd (ASX: CTD).

Following the divestment, Helloworld will be focusing on its leisure and corporate travel networks, air consolidation business, wholesale and inbound businesses, and its logistics business.

The resulting funds will allow it to repay debt and capitalise on pent-up consumer demand as borders reopen following COVID-19.

Though, despite its strong month’s performance, the Helloworld share price has only broken even year to date. Meanwhile, the Webjet share price is almost 4% higher than it was at the start of the year.

The post Why is the Webjet (ASX:WEB) share price underperforming Helloworld in December? appeared first on The Motley Fool Australia.

More reading

• How are ASX 200 travel shares faring over the holiday season?
• ASX travel shares in focus on global flight cancellations
• These are the 10 most shorted ASX shares
• Why AMP, Hipages, Pilbara Minerals, and Webjet shares are storming higher
• ASX 200 (ASX:XJO) midday update: AMP shoots higher, travel shares rise

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. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3JqbzeT

With the majority of brokers across Australia taking a well-earned break, broker notes are extremely limited present.

In light of this, listed below are a few recent broker recommendations that remain very relevant today. Here are three ASX shares rated as buys:

CSL Limited (ASX: CSL)

According to a note out of Morgans, its analysts have retained their add rating and lifted their price target on this biotherapeutics giant’s shares to $334.70. This follows the announcement of the acquisition of Vifor Pharma for US$17 billion. Morgans doesn’t believe this deal is a sign that CSL’s core business’ growth is coming to an end. Rather, it feels it is a complementary acquisition with a strong product portfolio that has growth opportunities. The CSL share price is trading at $293.25 on Thursday.

Nearmap Ltd (ASX: NEA)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $3.20 price target on this aerial imagery and location intelligence company’s shares. Morgan Stanley was pleased to see that Nearmap reported strong growth in the North American market in recent months. It feels this bodes well for its first half results in February. The Nearmap share price is fetching $1.54 today.

South32 Ltd (ASX: S32)

Analysts at Macquarie have retained their outperform rating and lifted their price target on this mining giant’s shares to $5.00. According to the note, the broker is a fan of South32’s acquisition of an interest in the Sierra Gorda Copper Mine in Chile. Macquarie notes that this gives the company further exposure to the decarbonisation theme. Its analysts also expect the deal to boost the company’s earnings and have upgraded their estimates to reflect this. The South32 share price is trading at $4.03 on Thursday.

The post Brokers name 3 ASX shares to buy appeared first on The Motley Fool Australia.

More reading

• Why has the South32 (ASX:S32) share price surged another 14% in December?
• Analysts name 3 ‘must have’ ASX shares for buy and hold investors
• 3 ASX biotech shares rated as buys in 2022
• Top broker tips CSL (ASX:CSL) share price to climb to $340
• Top ASX shares to buy in 2022

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. owns and has recommended CSL Ltd. and Nearmap Ltd. The Motley Fool Australia owns and has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3EFFrQX

If you’re wanting to invest in the tech sector for diversification, then exchange traded funds (ETFs) could help you achieve this.

But which ETFs should you look at? Here are two popular ETFs that could be worth considering:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first tech ETF to look at is the BetaShares Asia Technology Tigers ETF. It gives investors exposure to ~50 of the largest technology and ecommerce companies that have their main area of business in Asia.

These companies, known as Tigers, include well-known players such as Alibaba, Baidu, Infosys, JD.com, Samsung, and Tencent Holdings. In addition, while they may be lesser known than the others, the likes of Kuaishou Technology, Meituan Dianping, and Pinduoduo are certainly not tiger cubs. These are companies that make many Australian tech companies look miniscule.

Pinduoduo, for example, is a US$68 billion e-commerce platform that offers a wide range of products from daily groceries to home appliances. The Pinduoduo platform connects distributors with consumers directly through an interactive shopping experience. This allows shoppers to team up to buy items in bulk at lower prices. It has an active customer base closing in on 1 billion.

It is worth highlighting that regulatory concerns in China have been weighing on the ETF. Though, this is being seen by many as a buying opportunity.

GFM Asset Management’s Tariq Dennison recently told CNBC: “If you ask me, newer regulations are more likely to entrench these companies and to give them wider moats because Tencent is very, very likely to be able to adapt to any of these new rules, to find new ways to make money. And they have lots and lots of consumers to serve in a common prosperity model.”

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Another tech ETF to consider is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors exposure to many of the largest companies involved in video game development, eSports, and gaming related hardware and software.

Among the companies you’ll be owning are game developers Activision Blizzard, Roblox, Take-Two, and Electronic Arts, and graphics processing unit (GPU) developer Nvidia. VanEck notes that the increasing popularity of video games and eSports means that these companies are well-placed to benefit.

One of the companies in the fund is Roblox. It is the game developer behind the eponymous Roblox online metaverse platform and game creation system. It has 50 million daily active users, which are generating significant recurring revenues for the company.

The post 2 exciting tech ETFs for ASX investors in 2022 appeared first on The Motley Fool Australia.

More reading

• Analysts name 3 ASX growth shares to buy right now
• 3 ETFs for smart ASX investors in 2022
• 2 top tech ETFs for 2022
• Why is the Betashares Asia Technology Tigers ETF (ASX:ASIA) struggling in December?
• 3 ETFs for ASX investors in 2022

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 recommended BetaShares Asia Technology Tigers ETF and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3FEe8aM

The broader S&P/ASX 200 Index (ASX: XJO) and All Ordinaries Index (ASX: XAO) may be returning 12% this year, but not all ASX shares are enjoying the party.

Two ASX shares have just hit 52-week lows today. Let’s take a look at why they are down on their luck.

Booktopia Group Ltd (ASX: BKG)

The Booktopia share price plunged to a 52-week low of $1.31 today despite no news out of the company. The company’s shares are trading at $1.33 at the time of writing, a 55.5% drop from their yearly high of $2.99 in August. They are now down almost 50% this year.

Investors have been selling Booktopia shares on the back of some tough news for the company. Earlier this month, the ACCC notified the company it would be taking it to the Federal Court. The claims relate to communications to customers with regards to returns and refunds.

Booktopia defended the claims in a statement to the market authorised by chairman Chris Beare on December 8. The company said:

At no time were these communications intended to exclude or limit Booktopia’s obligations under the Australian Consumer Law.

Another factor impacting the Booktopia share price could be an update from the company just before Christmas.

In a trading update to the market on December 23, the company advised it is expecting earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $4 to $4.5 million in the first half of the financial year. This is up to 50% less than the $8 million recorded in the previous year.

The company advised earnings were lower due to labour costs managing Sydney’s COVID-19 lockdowns. The ongoing threat of the COVID-19 Omicron variant in Australia could be continuing to impact investor confidence in this ASX share.

Openpay Group Ltd (ASX:OPY)

The Openpay share price hit a 52-week low on Thursday. In afternoon trade, the buy now, pay later (BNPL) company’s shares are trading at 74 cents after hitting the yearly low of 73 cents this morning.

In fact, the Openpay share price is now down nearly 78% from its 52-week high of $3.35 and about 68% this year.

The latest decline in this ASX share reflects a trend across the BNPL sector.

The share price of Afterpay Ltd (ASX: APT) is tumbling 2.7% today, while Zip Co Ltd (ASX: Z1P) has slumped 2.51%. Sezzle Inc‘s (ASX: SZL) stock is also trading 2.27% lower.

Looking at the trend in the US, the Affirm Holdings Inc (NASDAQ: AFRM) share price fell 3.43%, while Paypal Holdings Inc (NASDAQ: PYPL) slipped 0.07%.  

The post 2 ASX shares hitting 52-week lows appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• Why the Booktopia (ASX:BKG) share price just crashed 10% to a record low
• Openpay (ASX:OPY) share price sinks 6% in grim day for ASX BNPL shares
• What happened with the Booktopia (ASX:BKG) share price today?
• Analysts are tipping huge gains for these small cap ASX shares

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Booktopia Group Limited. 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/32O6ufl

2021 was a brilliant year for many ASX lithium shares, but can the new year bring the same gusto for the sector?

Here’s what experts are predicting for the ‘white gold’ metal and the companies that work to produce it in 2022.

What 2022 could bring for lithium prices

Many experts expect the price of lithium to remain high through next year.

As my Foolish colleague, James Mickleboro, recently reported, Macquarie Group Ltd (ASX: MQG) analysts are bullish on the commodity’s price. And not only for the new year, but for the 3 following years as well.

It believes producers will be kept busy by demand from electric vehicle manufactures.

That sentiment is echoed by S&P Global Platts Analytics. It predicts demand for lithium will likely see production nearly triple by 2025, meaning the coming years could see a major boom in the sector.

However, for the next 12 months, it expects a demand deficient of around 5,000 megatons of lithium carbonate equivalent.

Additionally, as The Motley Fool Australia reported yesterday, mergers and acquisition activity in the lithium space might be about to ramp up. Particularly, as Chinese companies vie to get a slice of the limited lithium pie.

That means the ASX could see more acquisitions similar to Rio Tinto Limited‘s (ASX: RIO) recently announced $1.15 billion lithium mine acquisition.

So, which ASX lithium shares might be worth keeping an eye on in the new year?

ASX lithium stocks experts think could soar in 2022

Pilbara Minerals Ltd (ASX: PLS)

Brokers’ opinions on Pilbara Minerals are mixed, with Macquarie targeting it as a buy and Credit Suisse maintaining a bearish view.

The former has placed a $3.70 price target on the lithium producer’s share price, while the latter has slapped it with a $2.05 target.

At the time of writing, the Pilbara Minerals share price is $3.21.

Allkem Ltd (ASX: AKE)

Alkem is another broker favourite. It’s the entity resulting from the recent merger of Ococobre and Galaxy Resources.   

UBS is targeting $10.75 for the company’s shares, hitting it with a buy rating earlier this month.

Meanwhile, Macquarie has an outperform rating on the company and a price target of $13.60.

Right now, the Alkem share price is $10.45.

Sayona Mining Ltd (ASX: SYA)

Finally, Marcus Today has labelled Sayona Mining a “speculative buy”, stating it has potential.

Right now, investors can get their hands on the company’s stock for 13.5 cents apiece.

The post What’s the outlook for ASX lithium shares in 2022? appeared first on The Motley Fool Australia.

More reading

• Christmas highs: 3 ASX 200 shares hitting record highs today
• 3 obscure lithium ASX shares ready to pop in 2022
• 13% gain in a week: Alkem (ASX:AKE) share price sparks brokers’ interest
• Why Magnis, Pilbara Minerals, Syrah, and Whispir shares are storming higher
• Is this ASX sector gearing up for a year of M&A activity?

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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3HqOAyz

The Shopping Cntrs Austrls Prprty Gp Re Ltd (ASX: SCP) share price is falling on Thursday afternoon. This comes as the retail property group shares are trading ex-dividend.

At the time of writing, the Shopping Centres Australasia share price is down 1.31% to $3.01 apiece. Despite the drop, it’s worth noting the company’s shares are up 7% in a month.

Why are Shopping Centres Australasia shares falling today? 

With the company’s half-year 2021 distribution recently announced, investors are eyeing Shopping Centres Australasia shares as they go ex-dividend today.

Typically, one business day before the record date, the ex-dividend date, is when investors must have purchased shares. If the investor does not buy Shopping Centres Australasia shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

What does this mean for shareholders?

For those eligible for the Shopping Centres Australasia dividend, shareholders will receive a payment of 7.2 cents per share on 31 January 2022. The dividend is not franked, which means investors will miss out on the imputed tax credits.

Investors who elect for the dividend reinvestment plan (DRP) will see a number of shares added to their portfolio. This will be based on a volume-weighted average price over 10 business days up until the record date (18 January). The DRP discount rate that will be applied is 1%.

The last election date for shareholders to opt-in to the DRP is 4 January 2022.

Is Shopping Centres Australasia a buy?

Following the company’s financial scorecard earlier this month, American multinational investment bank Jefferies weighed in on the Shopping Centres Australasia share price.

Its analysts upgraded the outlook to “buy” from “hold”, and raised the 12-month price target by 5.3% to $3.16.

Based on the current share price, this implies an upside of about 5% for investors.

Shopping Centres Australasia share price summary

Since the beginning of 2021, the Shopping Centres Australasia share price has gained 16% on the back of positive investor sentiment. The S&P/ASX 200 Real Estate Index (ASX: XRE) is up around 17% over the same timeframe.

Shopping Centres Australasia commands a market capitalisation of roughly $3.33 billion, with approximately 1.11 billion shares outstanding.

The post Shopping Centres Australasia (ASX:SCP) share price edges lower. Here’s why appeared first on The Motley Fool Australia.

More reading

• What’s happening with the Sandfire Resources (ASX:SFR) share price today?
• Here’s what this broker thinks of the CBA (ASX:CBA) share price
• Own Janus Henderson (ASX:JHG) shares? The CEO just made another sizeable transaction
• Christmas highs: 3 ASX 200 shares hitting record highs today
• Is the Magellan (ASX:MFG) share price a beaten-up buy?

Motley Fool contributor Aaron Teboneras 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 owns and has recommended Shopping Centres Australasia Property Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3mElQtV

The Sandfire Resources Ltd (ASX: SFR) share price is rising today following an acquisition update.

The mining and exploration company announced this morning that relevant applications for its upcoming infrastructure acquisition have been approved. This places the transaction two months ahead of schedule.

At the time of writing, the Sandfire share price is up 1.06% at $6.66.

What did Sandfire announce?

The Sandfire Resources share price is on the move after the company announced its proposed acquisition of MATSA has taken a step closer to completion. MATSA is an underground copper location in the Iberian Pyrite Belt of Spain.

According to Sandfire, the site is a large-scale, high-quality, low-cost, long-life development that will establish the company as a leading copper-focused producer.

As such, the resources attached from the MATSA site will become paramount to the miner’s global operations over the next decade.

Sandfire initially announced the takeover back in September, with an agreed transaction of US$1.8 million.

This transaction is now unconditional and will proceed toward completion toward the end of next month.

Karl Simich, managing director and CEO of Sandfire, said the clearance of the relevant approvals in such a short turnaround was a “fantastic result”, and would put the handover two months ahead of schedule.

The acquisition has been funded by a combination of debt, exisiting cash reserves, and equity, the company said.

Sandfire Resources share price snapshot

The Sandfire Resources share price has increased by 31% this year.

The company experienced a two-year price high back in April, following a quarterly update detailing high production and solid cost estimates.

The company has a market capitalisation of over $2 billion and a price-to-earnings ratio (P/E) of 6.88.

The post What’s happening with the Sandfire Resources (ASX:SFR) share price today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CBA rises, Sandfire’s MATSA update
• Why Australian Clinical Labs, Magellan, Sandfire, and Telix shares are rising

Motley Fool contributor Alice de Bruin 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3zbgPhD