Category: Stock Market

The Bitcoin (CRYPTO: BTC) price is up 1.5% over the past 24 hours.

The world’s biggest crypto by market valuation is currently worth US$65,647 (AU$89,921), according to data from CoinMarketCap.

Today’s bump leaves the Bitcoin price slightly higher than this time last week. But the token has slid 4.5% from last Wednesday’s (Thursday Aussie time) fresh all-time highs of US$68,789.

That new record high, according to Simon Peters, crypto analyst at multi-asset investment platform eToro, was “triggered by painfully high inflation numbers from the US.”

How are inflation concerns spurring the Bitcoin price?

Inflation concerns are nibbling away at investor confidence across developed nations.

In the United States, the world’s largest economy, the latest inflation figures hit the news on Wednesday, 10 November. That data showed that the consumer price index (CPI) gained an eyewatering 6.2%, the fastest year-on-year rate of price increases in 30 years.

Not coincidentally, the Bitcoin price took off on the news, with inflation fears accounting for perhaps half the price momentum.

According to Björn van Roye and Tom Orlik, with Bloomberg Economics, “Our model shows that for Bitcoin, the importance of inflation and hedging against uncertainty become more important drivers over time, accounting for 50% of price moves in the latest cycle relative to 20% in 2017.”

eToro’s Peters agrees, saying:

It is eye-opening to see the price react so spectacularly in this way. Not only is it a signal that the market is extremely averse to inflationary pressure, it is a sign investors are now firmly using Bitcoin as a hedge against rising prices. It is also a sign that institutional investors may be participating in ‘buying the news’ as this is the sort of movement we’d typically associate with other markets that react heavily to economic news.

Strahinja Savic, head of data and analytics at crypto derivatives provider FRNT Financial Inc, adds (quoted by Bloomberg):

Not only is the dilution of Bitcoin much less aggressive than USD over the last six years, it’s also much more consistent, not susceptible to political whims and, of course, predictable. Bitcoin’s programmed predictability contrasts it from the uncertain policy decisions that impact the dollar.

Chris Weston, head of research at Pepperstone Financial Pty Ltd drew the parallel with a rising Bitcoin price and gold, the historic inflation hedge of choice, trending higher as investors mull the fact that inflation may be running hotter for longer than expected.

“The last few days we’ve seen some really big information coming through which has made people want to go out and hedge themselves against inflation risks,” Weston said. “Bitcoin’s been doing well, crypto’s done well as a hedge I suppose, gold’s been moving up concurrently with the stronger dollar.”

Not all inflation hedges are created equal

The Bitcoin price may have spiked to new records on the outsized inflation figures coming out of the US.

But caution remains in order for investors hoping the cryptocurrency will protect their portfolios from fast rising prices.

According to Wilfred Daye, head of Securitize Capital (quoted by Bloomberg), “We don’t have long enough history to assert Bitcoin is indeed an inflation hedge. I would argue that gold is a better inflation hedge still. But Bitcoin as an inflation hedge is a new sexy concept – people love new ideas.”

Cam Harvey, a partner at Research Affiliates, pointed to the Bitcoin price plunge of some 50% during the February and March 2020 COVID-fuelled share market rout:

It behaves like a speculative asset… Investors need to be cautious if they’re thinking that an allocation to Bitcoin is going to provide short-term inflation protection because we know if inflation goes up unexpectedly that that’s bad for equities. And if something’s bad for equities, that could lead to a risk-off trade.

Peters concludes:

It remains to be seen how far this price spike will extend. From an investor perspective what’s key is understanding the intrinsic investment case for the cryptoasset. Anyone interested in the market should do their research thoroughly instead of just buying on the back of Bitcoin price movements.

Over the past month the gold price is up 5.3%, with an ounce of gold currently worth US$1,860.

The Bitcoin price has just edged out the yellow metal, up 6.3% since this time last month.

The post Bitcoin (CRYPTO:BTC) price resilience takes on gold as investors seek inflation protection appeared first on The Motley Fool Australia.

More reading

• Here’s why Bitcoin hit a new all-time high on Wednesday
• Looking for crypto investing advice? Why your financial adviser’s lips may be sealed
• Why Bitcoin hit all-time highs on Tuesday
• The total value of crypto just surpassed US$3 trillion, what’s next?
• Why Dogecoin, Shiba Inu and Bitcoin investors should ‘follow’ Elon Musk

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decent gain. At the time of writing, the benchmark index is up 0.35% to 7,469 points.

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

Cardno Limited (ASX: CDD)

The Cardno share price is up 3.5% to $1.62. This morning the company announced the strategic review of its International Development Business. This will include an assessment of acquisition, merger or sale options with a view to enhancing value for Cardno shareholders. Cardno also notes that it has received a number of unsolicited approaches in relation to the business in recent weeks.

Incitec Pivot Ltd (ASX: IPL)

The Incitec Pivot share price is up 5% to $3.28. This follows the release of the agricultural chemicals company’s full year results this morning. Incitec Pivot reported a 10% lift in revenue to $4,348.5 million and 91% jump in net profit after tax (NPAT) excluding individually material items to $209 million. The Fertilisers APAC business drove the strong result. It benefited from a commodity price upswing and strong ammonium phosphates production.

Mesoblast limited (ASX: MSB)

The Mesoblast share price has jumped 12% to $1.91. Investors have been buying the allogeneic cellular medicines developer’s shares after it released positive data from a phase three trial. That trial was studying rexlemestrocel-L in 565 patients with New York Heart Association class II and class III chronic heart failure with reduced ejection fraction. The data revealed some very promising results which has got investors excited.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is up 2.5% to $56.02. This is despite there being no news out of the logistics solutions company today. However, a number of tech shares are pushing higher today following a strong night of trade for the Nasdaq index on Friday. The S&P/ASX All Technology Index is up 1.1% at the time of writing.

The post Why Cardno, Incitec Pivot, Mesoblast, and WiseTech are storming higher appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares could be set to face fresh pressure over climate action
• ASX 200 (ASX:XJO) midday update: Incitec Pivot and Mesoblast jump, NAB drops
• Mesoblast (ASX:MSB) share price surges 9% higher on trial update
• Incitec Pivot (ASX:IPL) share price leaps 17% after 91% profit jump
• These are the 10 most shorted ASX shares

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

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The Fortescue Metals Group Limited (ASX: FMG) share price is having a good day’s trade on the ASX for no obvious reason.

In fact, the spot price of the company’s major commodity, iron ore, is flat at US$93.40.

At the time of writing, the Fortescue Metals share price is $15.95, 1.24% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.33% right now. The All Ordinaries Index (ASX: XAO) is also up, having gained 0.4%.

Let’s take a look at what’s going on with this ASX mining share today.

What’s driving the Fortescue share price?

While the Fortescue share price’s gains are unexplained, it isn’t alone in having a good day on the ASX.

Many of the company’s peers are in the green, boosting the S&P/ASX 200 Materials Index (ASX: XJM) higher in early trade.

Incitec Pivot Ltd (ASX: IPL) is one of the sector’s winners today. It’s posting a 5% gain on the back of its full-year results.

Meanwhile, Fortescue’s fellow iron ore giants aren’t fairing so well.

Right now, the BHP Group Ltd (ASX: BHP) share price is down 0.89%. Rio Tinto Limited (ASX: RIO) shares aren’t doing much better, showcasing a 0.55% tumble.

There’s been no news to explain Fortescue’s gains today. However, the company’s chair did appear in the media yesterday.

Fortescue chair Andrew ‘Twiggy’ Forrest was interviewed by Sydney Morning Herald columnist and author Peter FitzSimons on Thursday. The resulting conversation was published yesterday.

The interview focused on Fortescue’s moves toward producing green energy and hydrogen power in Australia.

FitzSimons’ interview (and Forrest’s condemnation of Australia’s diesel fuel rebate) was quickly critiqued by Australian Financial Review columnist Joe Aston.

Perhaps, the media attention might have shifted the market’s focus back onto Fortescue Metals’ green ambitions – expected to be realised through its subsidiary, Fortescue Future Industries.

Right now, the Fortescue Metals share price is 11% higher than it was this time last month. However, it’s still 32% lower than it was at the start of 2021.

The post Iron ore prices are flat, so why is the Fortescue (ASX:FMG) share price jumping higher today? appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Why are ASX 200 resources shares booming again on Friday?
• Why Calix, Fortescue, Link, and Zip shares are jumping today
• ASX 200 (ASX:XJO) midday update: BHP & Fortescue rise, Zip completes acquisition
• Fortescue (ASX:FMG) share price climbs 5% as iron ore rebounds

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.

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The Rio Tinto Limited (ASX: RIO) share price is having a subdued start to the week.

In afternoon trade, the mining giant’s shares are down almost 1% to $91.53.

Where next for the Rio Tinto share price?

One leading broker that believes Rio Tinto’s shares could be heading higher from here is Citi.

According to a note this morning, the broker has retained its buy rating and $115.00 price target on the company’s shares.

Based on the current Rio Tinto share price, this implies potential upside of over 25% for investors.

But it gets even better, with Citi forecasting a ~$11.00 per share fully franked dividend in FY 2022. If you include this, the total potential return stretches to almost 38%.

What did the broker say?

Citi is bullish on the Rio Tinto share price largely due to its exposure to aluminium. The broker expects the aluminium market to fall into a deep deficit in 2022. This is expected to be driven by growing demand and tight supply.

In addition to this, Citi sees Rio Tinto as well-positioned to benefit from demand for higher grade iron ore from China.

Anything else?

The broker has previously spoken about the company’s decarbonisation plans. While this led to a reduction in its earnings estimates to account for higher production costs, it wasn’t enough to put Citi off. This is due to its generous yield outlook and the attractive Rio Tinto share price.

Citi commented: “RIO has gone earlier than peers on decarbonisation commitments and set out capital cost estimates. Others will likely have to follow suite. That said, what caught our attention was the implied mid-term increases in Pilbara iron ore unit costs and higher sustained capex. We’ve reduced CY23/24E NPAT by 9%/10% and reduced our DCF. Nevertheless, RIO trades on CY23E EV/EBITDA of 4.5x at $80/t Fe for a div. yield of ~8% and at an 18% discount to our DCF. We stay Buy-rated.”

The post Could the Rio Tinto (ASX:RIO) share price be set to leap 25%? appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares could be set to face fresh pressure over climate action
• Leading brokers name 3 ASX shares to buy today
• Why are ASX 200 resources shares booming again on Friday?
• Fortescue (ASX:FMG) share price surges 9% to shrug off falling iron ore price
• Why the Rio Tinto (ASX:RIO) share price underperformed the materials sector over the last 3 months

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 Bruce Jackson.

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Shares in minerals explorer Minerals 260 Ltd (ASX: MI6) are charging higher to trade more than 20% in the green at 70 cents.

Minerals 260 shares have rallied from the open to trade as high as 74 cents, before reversing course to the current market price.

Investors have been bidding up the Minerals 260 share price following a company announcement on its 100% owned Moora Gold-PGE-Nickel-Copper project in WA.

The company has started its inaugural drilling program since demerging from Liontown Resources Ltd (ASX: LTR) and listing on the ASX in October 2021.

Here are the details.

What is Minerals 260?

The company was listed on the ASX after a successful demerger from Liontown where it raised $30 million via an initial public offering (IPO). This saw the creation of Minerals 260.

It was formed to contain Liontown’s non-lithium assets, which include Moora and the Koojan Project located in southwest Western Australia.

That was on 12 October and since then, the Minerals 260 share price has climbed more than 35%, roaring off a low of 45.5 cents last week to its new high today.

At the time of writing, Minerals 260 has a market capitalisation of almost $153 million.

What was announced?

Minerals is set to commence its first drilling program at the Moora project, located around 150km northeast of Perth.

The Moora project forms part of a 1,100km square land package that also includes adjacent projects to the Angepena prospect.

A 3,500 metre diamond core drilling program is designed to follow up on intersections reported earlier this year from the Angepena gold prospect.

Those results showed an intersection of gold at various depths and with various concentrations in the samples.

Diamond core drilling at the site will now determine the style, orientation and continuity of the mineralisation.

Geological data obtained will then be used to plan a 6,000m reverse circulation (RC) drilling program, due to start this month.

In addition to drilling at Angepena, Minerals 260 also intends to undertake follow up drilling at other targets and complete a low-level “aeromagnetic survey to better define prospective mafic/ultramafic units obscured by transported cover”.

The results of all works to be completed will be used to plan further drilling programs, Minerals 260 says.

Minerals 260 share price snapshot

Investors are rallying for a spot in the newly-formed minerals explorer, with total volume traded so far today reaching 2,715,603 shares – 46% above its 4-week average since listing.

After its 35% return since 12 October, early investors will be happy as this gain is well ahead of the S&P/ASX 200 Index (ASX: XJO)’s climb in that time.

Shares in Liontown Resources are also trading up 6.05% on the day at $1.665 apiece.

The post Why is the Minerals 260 (ASX:MI6) share price rocketing 21% today? appeared first on The Motley Fool Australia.

More reading

• This young stock picker bought Afterpay (ASX:APT) at $20. Here’s which ASX shares she likes now
• Why the Nexus Minerals (ASX:NXM) share price is rocketing 22% to an all-time high today
• Why the Mineral Resources (ASX:MIN) share price is storming higher
• Why is the Poseidon Nickel (ASX:POS) share price having such a great day?
• These ASX 200 shares could be set to face fresh pressure over climate action

The author Zach Bristow has no positions 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.

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There aren’t too many ASX-listed shares that can lay claim to a 10 bagger return in less than 2 years, and there are even fewer fund managers that can say they picked one. However, that’s exactly what Firetrail Investments fund manager, Eleanor Swanson managed to do with Afterpay Ltd (ASX: APT).

The young and passionate stock picker eyed-off the buy now, pay later (BNPL) company despite a wall of pessimism towards the instalment payment provider. However, Swanson made a compelling case that eventually won over her peers, leading to a highly rewarding investment for Firetail and its investors.

After having already landed the pick of a lifetime, Swanson is naming more ASX shares that are looking good right now.

Appealing ASX shares on Swanson’s radar

Channelling that millennial spirit, Eleanor led Firetrail Investments to buy Afterpay when it was around $20. However, the analyst had been keeping tabs on the company prior to it cracking $10. However, Swanson’s ASX stock-picking prowess extends beyond payments.

With a university background in science, the successful analyst is no stranger to ASX healthcare and biotech shares. Majoring in immunology, Swanson is quick to delve into complex medical terminology — exhibiting a deep understanding that comes in handy when evaluating the likes of Aroa Biosurgery Ltd (ASX: ARX). The fund jumped on the soft-tissue regeneration company pre-IPO and still maintains its holding.

Another ASX share that Swanson has had a hand in picking is Beacon Lighting Group Ltd (ASX: BLX). In speaking with The Australian the Firetrail analyst said:

Eighteen months ago, we cottoned on to the fact they were rolling out a trade strategy instead of just focusing on the retail market.

It has been a great performer for the fund. Finding that angle gave us a great point of differentiation to model out the earnings.

In addition, the fund is bullish on outdoor advertising company oOh!Media Ltd (ASX: OML). Despite trading above its pre-COVID levels when accounting for dilution, Swanson believes the market is underestimating how strong the advertising market is going to be next year.

A secret tech play

Having more than proved her abilities, Eleanor Swanson is set to share another ASX tech share at the Sohn Hearts & Minds conference on 3 December 2021. At this stage, the exact company is under wraps, but we know it’s a small-cap Australian company in the tech space.

It is an Australian company which has built a product here and is now taking it offshore and building a global business.

Eleanor Swanson, Firetrail Investments

Investors who tune in will hear Eleanor make the case for this ASX tech share, possibly much like she did for her bet on Afterpay not too long ago.

The post This young stock picker bought Afterpay (ASX:APT) at $20. Here’s which ASX shares she likes now appeared first on The Motley Fool Australia.

More reading

• A bumper Christmas, Afterpay goes banking, and good news on credit. Scott Phillips on Weekend Sunrise
• Beyond BNPL: Here’s how Afterpay (ASX:APT) is also targeting spendings and savings
• ASX 200 tech shares in focus as Nasdaq plunges 1.7%
• Why Afterpay, Immutep, Pushpay, and Vulcan shares are falling
• Afterpay (ASX:APT) share price lifts despite hospitality push creating concerns

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended oOh!Media Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Nexus Minerals Ltd (ASX: NXM) share price has come out of a trading halt on Monday to reach a record high. This comes after the gold explorer announced an update on its recent capital raise.

At the time of writing, Nexus shares are up a sizeable 22% to an all-time high of 61 cents. In the past week alone, its shares have now risen more than 32%.

Nexus completes placement

Investors are buying up Nexus shares as the company seeks to progress its exploration activities at the Wallbrook Gold Project.

According to its announcement, Nexus said it has received firm commitments for its institutional placement to raise $19 million before costs. The company highlighted that it had strong support from both domestic and offshore institutional investors.

The offer will see approximately 41.3 million new ordinary shares issued at a price of 46 cents apiece. This represents an 8% discount to the last closing price of 50 cents on 10 November (before going into a trading halt).

The company will primarily use the proceeds to fund drilling activities at the Crusader-Templar prospect and other regional exploration activities.

In particular, the funds will be allocated to the following:

• Crusader-Templar Prospect reverse circulation and diamond drill programs;
• Solomon Prospect reverse circulation and diamond drill programs;
• Regional target generation and aircore, reverse circulation and diamond drill programs;
• Regional geophysical surveys; and
• General working capital.

Settlement of the new shares is expected to occur on Monday 22 November.

Nexus managing director Andy Tudor commented:

The proceeds from the placement will allow Nexus to expedite and ramp-up exploration programs at the Wallbrook Gold Project, where the company has been having exploration success at the Crusader-Templar Prospect in recent drill programs. To have achieved such a strong level of institutional and sophisticated investor support for the placement was very encouraging and a strong endorsement of the company’s endeavours.

Nexus Minerals share price summary

Adding to today’s gains, Nexus shares have pushed around 250% higher in the past 12 months. However, when looking at year-to-date, the company’s shares are hovering around upwards of 370%.

Based on valuation grounds, Nexus presides a market capitalisation of around $150.46 million, with almost 247 million shares outstanding.

The post Why the Nexus Minerals (ASX:NXM) share price is rocketing 22% to an all-time high today? appeared first on The Motley Fool Australia.

More reading

• Why the Mineral Resources (ASX:MIN) share price is storming higher
• Why is the Poseidon Nickel (ASX:POS) share price having such a great day?
• These ASX 200 shares could be set to face fresh pressure over climate action
• Here’s why the Incannex (ASX:IHL) share price has rocketed 60% in a month
• Westpac (ASX:WBC) just sealed a record bond deal. What could this mean for shareholders?

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 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.

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The Mineral Resources Limited (ASX: MIN) share price has started the week in a positive fashion.

At one stage today, the mining and mining services company’s shares were up almost 5% to $41.68.

The Mineral Resources share price has pulled back a touch since then but remains up 3% to $40.99 currently.

Why is the Mineral Resources share price charging higher?

The catalyst for the rise in the Mineral Resources share price appears to be the increasingly favourable outlook for lithium prices.

Mineral Resources has exposure to lithium through its Mt Marion Lithium project, which it jointly owns with Jiangxi Ganfeng Lithium, and its Wodgina Lithium project. Wodgina is one of the largest known hard rock lithium deposits in the world with an estimated production life of over 30 years.

What’s happening?

According to a report by GlobalData, courtesy of Forbes, there are concerns over lithium shortages due to growing demand for the white metal from the electric vehicle (EV) market.

While this is expected to stifle EV adoption, it is also expected to support higher lithium prices.

The GlobalData report says: “With lithium prices set to rise throughout the next decade, the EV sector in the West will have to face rising battery costs. If they pass costs on to the consumer, EV adoption will likely accelerate at a slower rate than previously expected.”

GlobalData analyst, Daniel Clarke, commented: “The rising price of lithium demonstrates what many in the industry have warned about for some time: the growing divergence between supply and demand for lithium.”

It isn’t just GlobalData that expects demand to increase. The International Energy Agency (IEA) has suggested that the growth in EVs could see lithium demand increase significantly times by 2030. The report notes that last year lithium demand was about 320,000 tonnes and is expected to hit 1 million by 2025 and 3 million by 2030.

All in all, this leaves companies like Mineral Resources well-placed to benefit greatly from the strong demand over the remainder of the decade.

The post Why the Mineral Resources (ASX:MIN) share price is storming higher appeared first on The Motley Fool Australia.

More reading

• How does the Pilbara Minerals (ASX:PLS) share price compare to Mineral Resources?
• Is the Mineral Resources (ASX:MIN) share price a lithium bargain buy?
• Top brokers name 3 ASX shares to buy today
• Why Mineral Resources, Paladin Energy, Regis, and Smartgroup are sinking
• Mineral Resources (ASX:MIN) share price slumps 7% on quarterly update

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 Bruce Jackson.

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Shares in nickel producer Poseidon Nickel Ltd (ASX: POS) are charging higher to trade 4.44% in the green at 9.4 cents.

Poseidon shares have been moving since a company announcement advising of updates at its Black Swan project and “Fill the Mill” strategy.

The company outlined progress at the site plus the favoured outcomes from a July 2021 scoping study undertaken for the project.

From the results, Poseidon reckons that growing its high and low grade indicated resource base at Black Swan will have the best economic outcome for the project moving forwards.

As such, its Fill the Mill strategy is “focused on growing [its] mine inventory at Black Swan with an aim to supporting a project life of more than five years”.

Here are the details.

What did Poseidon Nickel announce?

Poseidon also detailed a number of other progress updates for its Black Swan site.

The nickel miner advised that new high-grade discoveries at its Golden Swan prospect now add another 6,300 tonnes of contained nickel to its Black Swan resources.

In addition, drilling at its Silver Swan site is now underway with the aim of increasing “high-grade mining inventory”. Previous test work “confirms Silver Swan tailings improves the Fe:MgO ratio of concentrate” at this location.

With regards to its Fill the Mill strategy, outcomes from the July 2021 scoping study indicated Poseidon has two attractive production options for mining at Black Swan.

To maximise the production of total nickel tonnes at the site, Poseidon reckons growing the high and low grade indicated resource base at Black Swan is the most attractive option economically.

This includes the resource at Golden Swan, Silver Swan, Silver Swan tailings, and Black Swan disseminated open pit ore feeds, according to the announcement.

It also came up with “relatively low capital and operating expenditure estimates for the larger 1.1Mt plan” and notes recent improvements in the payability of nickel in concentrates due to a “tightening market”.

And with the spot price of nickel fetching near recent 5-year highs at US$20,134/tonne, Poseidon believes the outlook remains positive for the future.

The company also identified the possibility to have a long-life project that could also treat ore from its 100% owned Windarra project.

In addition, for its Black Swan site, the company has signed a 5-year water access agreement with Norton Gold Fields Pty Ltd to help “de-risk” the project.

In fact, since 2018, the company has made several advancements in ‘de-risking’ the project. It says it has done this by growing the mineral resource at Black Swan, looking at ways to remove impurities from the ore and gaining access to grid power to reduce operating costs.

What did management say?

Speaking on the announcement, Poseidon Nickel CEO Peter Harold said:

Since announcing our “Fill the Mill” strategy in July 2021 the Company has made considerable progress on workstreams progressing our Black Swan project towards a restart, targeting late 2022 plant commissioning.

He continued:

Of particular importance, we have released our maiden Golden Swan Resource, commenced resource drilling at Silver Swan to convert Inferred Resources to Indicated and begun drilling of the Black Swan disseminated orebody to increase confidence on the grade and the amount of serpentinite ore in this Resource. We have also released a maiden Resource on the Silver Swan tailings and commenced metallurgical test work on blending the various feed sources through the Black Swan 2.2Mtpa concentrator, derated to 1.1Mtpa.

Poseidon Nickel share price snapshot

It’s been a year of green for the Poseidon Nickel share price, having climbed 32% in that time after rallying 45% this year to date.

These returns have both outpaced the benchmark S&P/ASX 200 Index (ASX: XJO)’s performance. It’s risen almost 17% in the past 12 months.

The post Why is the Poseidon Nickel (ASX:POS) share price having such a great day? appeared first on The Motley Fool Australia.

More reading

• Poseidon (ASX:POS) share price lifts on ‘some good hits’
• Here’s why the Poseidon (ASX:POS) share price is sliding today

The author Zach Bristow has no positions 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.

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A new report could increase the pressure investors put on the boards of S&P/ASX 200 Index (ASX: XJO) companies after it found the leaders of Australia’s biggest carbon emitting entities aren’t effectively managing climate risks.

It stated such failures leave companies – and their investors – exposed to unnecessary risk.

The Investor Group of Climate Change (IGCC) assessed the boards of 15 ASX 200 companies to create the report.

In doing so, it found directors often aren’t skilled or experienced enough to lead a transition to net zero emissions. Further, companies were generally unclear on how they are addressing such gaps.

The report looked into 15 of Australia’s largest emitters.

These included energy producers and retailers AGL Energy Limited (ASX: AGL), Origin Energy Ltd (ASX: ORG), Oil Search Ltd (ASX: OSH), Santos Ltd (ASX: STO), and Woodside Petroleum Limited (ASX: WPL).

Iron ore giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) were also involved, as was BlueScope Steel Limited (ASX: BSL) and Incitec Pivot Ltd (ASX: IPL).

Qantas Airways Limited (ASX: QAN) and Woolworths Group Ltd (ASX: WOW) were also reviewed.

Let’s take a closer look at the IGCC’s findings.

ASX 200 boards fail when it comes to climate

The IGCC has found that the boards of ASX 200 companies generally don’t appear to be properly managing climate risk.

The body states many boards still see climate action as a compliance or reputational matter, rather than a business risk.  

Additionally, disclosure of both board members’ climate skills and of a company’s actions to address climate change are lacking. The IGCC states that weak disclosure practices suggest companies may not understand climate risks.

The report’s lead researcher and author, Ian Woods stated:

[M]any companies identified the need for climate skills on their board, but few identified broader transition and disruption expertise, and none were comprehensively disclosing on board skill sets. Based on current disclosure it is hard for investors to form a view on how prepared these boards are for the transition.

Further, many ASX 200 boards place the responsibility of assessing climate risks onto a sustainability committee. However, such committees often only refer to greenhouse gas emissions and treat climate change as one of several environmental issues. They also tend to avoid covering technology developments and scope 3 emissions – those created in a company’s value chain.

Finally, the report found that companies continually underestimate the speed of technology change and innovation when it comes to climate change.

IGCC director of corporate engagement, Laura Hillis commented:

We’re not seeing the progress we need from companies to instil investor confidence…

Boards that fail to recognise the risk of climate change and their role in driving the company transition to a low carbon business, will leave the company and investors exposed to unacceptable financial, strategic and market risks. Not to mention they will miss out on the opportunities on the decarbonisation pathway, including jobs for regional communities.

The post These ASX 200 shares could be set to face fresh pressure over climate action appeared first on The Motley Fool Australia.

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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.

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