Category: Stock Market

The Dacian Gold Ltd (ASX: DCN) share price is leaping higher today, up 9% in early afternoon trade to 25 cents per share.

Gold prices, meanwhile, edged up overnight to US$1,793 per troy ounce.

Below we take a look at the ASX gold explorer’s latest drill results that look to be driving investor interest.

What gold results were reported?

The Dacian Gold share price is surging after the company reported promising gold drilling results at the Heffernans and Ganymede open pits at its Mt Morgans Gold Operation, located in Western Australia.

According to this morning’s release, the drill campaign intersected mineralisation at depth in the Jupiter syenite intrusive system, “at the limit of, and below the Mineral Resource estimate”.

Dacian reported that drilling beneath its Heffernans open pit intersected 102.9 meters at 1.4 grams of gold per tonne from 436.3 metres, including 14.7m at 7.2g/t from 468 metres.

Meanwhile, drilling below its Ganymede open pit intersected 44.5m @ 1.1g/t from 247.1m, including:

• 3m @ 1.4g/t Au from 247.1m
• 2m @ 1.0g/t Au from 269.5m

Commenting on the results, Dacian’s managing director Leigh Junk said:

These results demonstrate extensions to mineralisation below our active mining areas which can have high-grade and significant width. The Jupiter complex represents a compelling exploration target, and the potential to extend our current operations located adjacent to our processing plant is extremely exciting. This success follows a disciplined, systematic approach by our exploration team.

The first 4 holes of the drill program at Heffernans and Ganymede are now completed. And Dacian reported it has a follow up drilling program already underway at Heffernans, with 7 more holes planned to test extensions of the intersection.

Dacian Gold share price snapshot

The Dacian Gold share price has struggled this year, down 48% so far in 2021. By comparison the All Ordinaries Index (ASX: XAO) is up 12% year-to-date.

Over the past month, Dacian Gold’s shares have gained 14%.

The post Why the Dacian Gold (ASX:DCN) share price is leaping 9% today appeared first on The Motley Fool Australia.

More reading

• Why is the Rhythm Biosciences (ASX:RHY) share price up 11% on Monday?
• Here’s why the Kuniko (ASX:KNI) share price is climbing today
• Could the Santos (ASX:STO) share price hit $10 by the end of 2021?
• Why the Essential Metals (ASX:ESS) share price is surging 8% today
• What’s the latest on the iron ore price?

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 Kuniko Ltd (ASX: KNI) share price is pulling ahead on Monday. While some of its exuberance has been lost since early morning trade, shares in the mineral exploration company are up 1.96% to $2.08. However, shortly after the opening bell, the Kuniko share price jumped to $2.34, an increase of 14.7%.

Above-average trading volume has flowed through Kuniko this morning following the release of assay results from its newly acquired Nord-Helgeland Project and other battery metals projects.

Encouraging findings

Investors are bidding up shares in the relatively new ASX-listed minerals explorer this morning. Excitement has trickled through the markets as shareholders absorb the latest assay results from one of the company’s exploration sites.

According to the release, Kuniko has received high-grade results for its Nord-Helgeland Project in Northern Norway. The assays have been carried out on historic mine dumps and workings across the Feøy, Romsås and Skuterud Projects. These results confirm the potential of the aforementioned projects.

Furthermore, grades of up to 14.35% copper and 1.74% nickel have been obtained from waste pit samples at Karmøy and Feøy. Positively, the mining company believes there might be scope for further exploration around the pegmatite field of its Nord-Helgeland Project. As a result, investors are pushing the Kuniko share price upwards today.

Kuniko ($KNI) announces encouraging assay results achieved from historic mine dumps and workings at its battery metals projects and initial field results from its newly acquired Nord-Helgeland Project.

Read More https://t.co/NtAfLNpyii #NetZero2050 #Copper #Nickel pic.twitter.com/jw3tAfI0RI

— Kuniko Limited (@KunikoLtd) October 24, 2021

https://platform.twitter.com/widgets.js

The findings are another step towards refining Kuniko’s drilling targets for 2022.

CEO Antony Beckmand commented on the assay results:

These assay results are strongly encouraging, reinforcing our knowledge of the available datasets, and telegraphing the valuable potential of our portfolio of battery metals projects in Norway. Further, there is clear potential for further exploration of the pegmatites in our newly acquired Nord-Helgeland Project which may provide an opportunity to expand our interests into valuable technology metals.

Additionally, the zero carbon-focused battery metals company is likely gathering attention today on the back of the Australian government’s 2050 net-zero deal. While the details of the deal aren’t yet public, the move could create a tailwind for sustainably-geared investments.

Kuniko share price snapshot

Since commencing trading on the ASX, the Kuniko share price has enjoyed an enviable run. In a little more than 2 months, the mineral explorer’s shares have soared 145%. For comparison, the S&P/ASX 200 Index (ASX: XJO) has slipped 0.7% during that time.

The post Here’s why the Kuniko (ASX:KNI) share price is climbing today appeared first on The Motley Fool Australia.

More reading

• Why is the Kuniko (ASX:KNI) share price soaring 13% on Monday?

Motley Fool contributor Mitchell Lawler 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 Santos Ltd (ASX: STO) share price has been a solid performer on Monday.

In early afternoon trade, the energy producer’s shares are up 2% to $7.19.

This latest gain means the Santos share price is now up 12% since the start of the year.

Could the Santos share price reach $10.00 by the end of 2021?

The good news for shareholders is that one leading broker still sees plenty of upside for the Santos share price.

According to a note out of Morgan Stanley this morning, its analysts have retained their overweight rating and lifted their price target on the company’s shares to $10.20.

Based on where the company’s shares are trading today, this implies potential upside of approximately 42% for investors.

In addition to this, Morgan Stanley has forecast a 24.3 cents per share dividend in FY 2022. If we add this into the equation, the total potential return stretches beyond 45%.

All in all, it appears as though this broker sees scope for the Santos share price to be trading around the $10.00 mark come the end of the year.

What did the broker say?

The note reveals that Morgan Stanley is bullish on Santos due to its expectation of higher LNG prices.

Its analysts have upgraded their long term LNG price forecasts by almost a third to US$10 per Metric Million British Thermal Unit (MMBtu). This is largely on the belief that demand in Asia will increase materially.

It commented: “We think Asia will consume significantly more natural gas in the early phases of the energy transition […] This will lead to higher LNG prices and better project return, improving investor sentiment towards these projects.”

In addition to this, the broker suspects that M&A activity may continue to heat up. This follows a number of transactions in the sector including BHP Group Ltd (ASX BHP) merging its petroleum assets with Woodside Petroleum Limited (ASX: WPL).

This could make the Santos share price one to watch in the coming months.

The post Could the Santos (ASX:STO) share price hit $10 by the end of 2021? appeared first on The Motley Fool Australia.

More reading

• Big banks’ forecast could mean extended tailwinds for ASX 200 energy shares
• 5 things to watch on the ASX 200 on Monday
• What this top broker thinks of the Santos (ASX:STO) share price
• 5 things to watch on the ASX 200 on Friday
• ASX 200 energy shares take a breather, broker sees “lot of upside risk” for oil

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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The Essential Metals Ltd (ASX: ESS) share price is off to the races, up 8.11% in afternoon trade to 20 cents per share.

Below, we take a look at the asset sale announcement from the ASX lithium and gold explorer that looks to be driving investor interest.

What asset sale was reported?

The Essential Metals share price is rocketing after the company reported it will divest its 51% interest in the Mavis Lake Lithium Project, located in Canada.

Essential Metals’ Joint Venture partner International Lithium Corporation, is also divesting its interest, giving 100% of the project to Critical Resources Ltd (ASX: CRR) under an Option Agreement. The Critical Resources share price is up 12.90% at time of writing.

According to the release, the divestment will realise $1.6 million in cash and shares, along with $1.5 million in cash that’s linked to certain milestones for Essential.

Critical Resources will pay $175,000 for the right to acquire 100% of the Mavis Lake Lithium Project. If it elects to go through with the deal, it will pay $1.5 million in cash and 68 million in Critical Resources shares, valued at 2.2 cents per share. That’s significantly below the current 3.6 cents per share.

Essential Metals and International Lithium Corporation will share the proceeds equally.

Additionally, the Essential Metals share price could be getting a lift from the report that milestone payments totalling $3 million may be received subject to the definition of a lithium resource at the project.

Commenting on the divestment, Essential Metals’ managing director, Tim Spencer said:

The strong interest in lithium has allowed Essential and ILC to monetize an early-stage, non-core asset on favourable terms. Retaining upside exposure via a shareholding in Critical Resources means we will benefit from any success the Critical Resources team has in advancing Mavis Lake.

We will continue to focus our efforts on the company’s first-class West Australian lithium and gold projects.

Spencer said rapidly advancing the company’s Pioneer Dome Lithium Project in Western Australia’s Eastern Goldfields was the highest priority.

Essential Metals share price snapshot

The Essential Metals share price is up an impressive 150% year-to-date. By comparison the All Ordinaries Index (ASX: XAO) has gained 12% so far in 2021.

Over the past month, Essential Metals shares have lost 9%.

The post Why the Essential Metals (ASX:ESS) share price is surging 8% today appeared first on The Motley Fool Australia.

More reading

• Essential Metals (ASX:ESS) share price rockets 29% on lithium update
• Essential Metals (ASX:ESS) share price tumbles 20% on lithium update

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 iron ore price has managed to stabilise around the US$120 a tonne level, providing some much-needed reassurance for the beaten up BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Ltd (ASX: FMG).

Last Friday, iron ore spot prices pushed US$2.59 or 2.2% higher to US$119.52 a tonne, according to Fastmarkets. Its commentary said that prices corrected upwards after a sharp decline on Thursday amid a bearish outlook for iron ore demand.

Iron ore futures on China’s Dalian Commodity Exchange opened higher on Monday, with contracts for January 2022 delivery lifting 4.65% to around 710 yuan (US$111) a tonne.

Iron ore price headlines

Commodity boom at risk, Fitch says

The economic factors driving the post-pandemic commodity boom are now fading, says Fitch Ratings Inc.

Commodity prices have enjoyed favourable macro factors including the restart of economic activity, relaxation of COVID-19 restrictions, and a strong rebound in industrial activity. That’s in addition to plenty of government fiscal and monetary support, Fitch said.

Prices were further fuelled by a decline in commodity output, driven by COVID-19-related restrictions, extreme weather events, and shipping capacity constraints.

In a note to clients, Fitch warned these factors are now beginning to wane with China’s property market slowdown already resulting in a plunge in iron ore prices.

“China’s property market is cooling, the pace of global industrial production growth is slowing, the US dollar has started to strengthen and global US dollar credit flows are weakening,” said Robert Sierra, Director in Fitch Ratings’ Economics Team.

Fitch flagged near-term tailwinds such as tightening monetary conditions as the US Federal Reserve begins to taper its asset purchases as well as a firmer US dollar.

China aims to keep steel supply and price stable

The China Iron and Steel Association (CISA) told industry players to ensure supply while keeping prices stable, according to Mining.com.

Policymakers said that “it is necessary to pay close attention to recovering global steel production, adjusting production and improving industry governance”.

This follows China’s daily crude steel output in September sliding to an almost three-year low, according to Reuters calculations.

The post What’s the latest on the iron ore price? appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) share price lifts as iron ore prices rebound on Monday
• ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps
• The TerraCom (ASX:TER) share price is up 7% on Monday. Here’s why
• Here’s why the Poseidon (ASX:POS) share price is sliding today
• Here’s why the Creso Pharma (ASX:CPH) share price is leaping 9% today

Motley Fool contributor Kerry Sun 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 Playside Studios Ltd (ASX: PLY) share price is surging higher today on the back of the company’s quarterly activities and cash flow report, which included an update on its recent acquisition.

Over the first quarter of financial year 2022, Playside received a record $4.04 million of revenue and signed an agreement to launch its maiden PC game.

At the time of writing, the Playside share price is 67.5 cents, 16.38% higher than its previous close.

However, earlier this morning, the company’s stock reached a new 52-week high of 70 cents, representing a daily gain of 20.6%.

Let’s take a closer look at today’s news from the video game developer.

The quarter just been for Playside

The Playside share price is soaring after it announced its Original IP business had its best quarter since the company’s inception.

Over the 3 months ended 30 September, its Original IP business saw $2.7 million of revenue. That represents a 22% quarter-on-quarter increase and 227% more revenue than it reported for the same quarter of the last financial year.

The business also signed a strategic partnership with London-listed, 5-time BAFTA award winning publisher, Team17. Together, the companies will publish Playside’s PC title, Age of Darkness: Final Stand.  

Under the partnership, Team17 will provide Playside with $2.42 million of recoupable payments to fund the title’s development in exchange for publishing rights. The companies will share the title’s future profits.

The company’s work for hire business also saw an increase in revenue over the quarter just been. It brought in $1.33 million, a 46% quarter-on-quarter increase and 25% more than the prior corresponding period’s revenue.

The business’ key achievement was the extension and expansion of its agreement with Facebook Inc‘s (NASDAQ: FB) Facebook Technologies.

Playside’s latest work-for-hire development agreement with Facebook Technologies saw the contract’s value boosted 90% higher than that of its previous agreement.

The contract was extended for another 6 months. In that time, PlaySide will deliver between 10 and 16 mini games.

Additionally, the titles launched by Playside in financial year 2021 and during the first quarter of financial year 2022 are all performing well.

The company also has 5 titles expected to launch this financial year, including a new title for the Dumb Ways to Die franchise.

Dumb Ways to Die update

The Playside share price is likely also being boosted by news of its first acquisition. The company acquired the Dumb Ways to Die franchise in September, paying for it on 1 October.

The franchise was purchased from Metro Trains Melbourne. Metro Trains Melbourne birthed Dumb Ways to Die after a 2012 campaign to promote rail safety went viral.

The franchise includes 6 ‘freemium’ mobile titles, merchandise, trademarks, social media accounts, and other digital assets. Freemium titles are free to access but offer in-game purchases.

According to Playside, the $2.25 million purchase price represents 1.5 times the franchise’s financial year 2021 revenue.

Since the acquisition, Playside has published several videos to the franchise’s TikTok account. The videos have amassed more than 7.8 million views and brought more than 330,000 new followers, growing the account’s following by 57% and boosting the games’ revenues.

Playside is currently in the pre-production phase for the development of a new title for the franchise. The company plans to release the title in the fourth quarter of financial year 2022.

Playside share price snapshot

Since Playside’s initial public offering (IPO), which occurred in December 2020, the company’s share price has gained 114%.

It is also currently 237% higher than the company’s prospectus offer price of 20 cents.

The post Why is the Playside Studios (ASX:PLY) share price rocketing 16% today? appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) share price lifts as iron ore prices rebound on Monday
• ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps
• The TerraCom (ASX:TER) share price is up 7% on Monday. Here’s why
• Here’s why the Poseidon (ASX:POS) share price is sliding today
• Here’s why the Creso Pharma (ASX:CPH) share price is leaping 9% today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Facebook. The Motley Fool Australia has recommended Facebook. 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 S&P/ASX 200 Index (ASX: XJO) has had a promising start to this week’s trading so far on Monday morning. At the time of writing, the ASX 200 is up a healthy 0.67% at 7,465 points. The BHP Group Ltd (ASX: BHP) share price has joined in this optimism this morning. BHP shares are currently up by 1.3% at $38.14 a share. So what’s pushing up BHP shares this Monday? Could the iron ore price be responsible?

Currently the ASX 200’s second-largest constituent by market capitalisation, BHP is the largest mining company in the country and one of the largest in the world. However, BHP shares are still primarily influenced by the market fluctuations of its most important commodity: iron ore.

What’s going on with the iron ore price?

BHP’s recent run to a new record high was indeed driven by an unprecedented boom in iron ore pricing. It was only a few months ago that the iron ore price was above US$200 a tonne, a historically sky-high level. This, together with record dividend payments, helped push BHP shares from the $43 a share level we saw at the start of the year to an all-time high of $54.55 by August. That’s a rise of more than 26%.

However, more recently, iron ore has been acting as a handbrake on BHP shares. Since reaching those new highs in early August, BHP shares have plummeted. The company is now around 40% off of those all-time highs as it stands today. Indeed, at the current BHP share price, the company is now down 11.4% in 2021 so far.

So that brings us back to the current iron ore price. What’s been going on with this most important commodity?

Well, iron ore is still well below the levels we saw only a few months ago. Saying that, it’s still had a pretty decent time over the past week or so. As my Fool colleague James covered this morning, benchmark iron ore prices rose 2.2% to US$119.52 a tonne on Friday night. Perhaps with this rise, investors are hopeful the worst of the iron ore price falls are behind BHP. At least for now.

Could BHP shares be a buy today?

As the Fool covered last week, broker Morgans is bullish on BHP shares at their current level. Morgans rated BHP as an add, with a 12-month share price target of $46.05 a share for the miner. That implies a potential future upside of close to 22% on current levels. Morgans reckons BHP has been oversold by investors, and is eyeing a “double-digit dividend yield” from BHP shares over the current financial year (FY2022).

At BHP’s current share price, this iron ore giant has a market capitalisation of $111.08 billion and a dividend yield of 10.62%.

The post BHP (ASX:BHP) share price lifts as iron ore prices rebound on Monday appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• Why is the BHP (ASX:BHP) share price slumping today?
• ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Sebastian Bowen 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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. The benchmark index is currently up 0.65% to 7,464.8 points.

Here’s what is happening on the ASX 200 today:

Telstra announces US$1.6bn Digicel Pacific acquisition

The Telstra Corporation Ltd (ASX: TLS) share price is pushing higher today after announcing a major acquisition. According to the release, Telstra has teamed up with the Australian Government to acquire the South Pacific-based telco, Digicel Pacific. The two parties have agreed to pay US$1.6 billion up front and up to an additional US$250 million. This latter is subject to Digicel Pacific’s business performance over the next three years. Telstra expects the deal to be earnings per share accretive.

Mineral Resources shares jump

The Mineral Resources Limited (ASX: MIN) share price is racing higher today after announcing the restart of its 40% owned Wodgina Lithium Mine in the Pilbara region of Western Australia. Wodgina, which has been on care and maintenance since November 2019, will be restarted to produce spodumene concentrate during the third quarter of 2022. The company will initially focus on restarting one of Wodgina’s three 250,000tpa processing lines.

Pilbara Minerals shares halted

The Pilbara Minerals Ltd (ASX: PLS) share price is paused on Monday after requesting a trading halt. The lithium miner requested the halt as it prepares an announcement on a strategic transaction concerning a downstream joint venture. Not further details were provided. However, just over two years ago, Pilbara Minerals announced binding terms with South Korean conglomerate, POSCO, for the formation of an incorporated joint venture in South Korea. The joint venture intends to build and operate a 40ktpa LCE primary lithium hydroxide downstream chemical processing facility.

Best and worst ASX 200 performers

The best performer on the ASX 200 has been the Mineral Resources share price with a 9% gain. This follows news that it is restarting the Wodgina Lithium Mine. The worst performer has been the Perpetual Limited (ASX: PPT) share price with a 6% decline. This may be due to profit taking after some strong gains last week.

The post ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps appeared first on The Motley Fool Australia.

More reading

• Telstra (ASX:TLS) share price higher following Digicel Pacific acquisition news
• Why the Mineral Resources (ASX:MIN) share price is charging higher on Monday
• Why is the Pilbara Minerals (ASX:PLS) share price halted?
• Telstra (ASX:TLS) share price on watch after announcing US$1.6bn Digicel acquisition
• 5 things to watch on the ASX 200 on Monday

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 shares of 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 Bruce Jackson.

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The TerraCom Ltd (ASX: TER) share price is roaring higher during late morning trade on Monday. This comes after the resource company provided investors with a coal sales update from its wholly-owned Blair Athol mine.

At the time of writing, TerraCom shares are swapping hands for 22.5 cents, up 7.14%. Just last week, its shares reached a new 52-week high of 25.5 cents before some profit-taking occurred.

TerraCom hits sales targets

The TerraCom share price is rocketing today with investors clearly happy about the way the company is performing.

According to its announcement, TerraCom is continuing to deliver a robust performance at its Blair Athol coal mine in Australia.

All cargoes containing coal from the company’s Blair Athol mine have now been fully sold until the end of January 2022.

The primary markets TerraCom services are the Japanese and South Korean energy markets and the Indian sponge iron market. The latter is made by directly reducing iron ore through the use of thermal coal in an electric arc furnace.

Coal sold from Blair Athol for the December 2021 quarter came to 575,000 tonnes. This represents an annualised run rate of 2.3 million tonnes per annum.

TerraCom is forecasting revenue of $224 per tonne in the December quarter. Should this be achieved, the operating cash margin is anticipated to be approximately $134 per tonne. Based on the 575,000 tonnes sold, the company will have operating earnings before interest, tax, depreciation and amortisation (EBITDA) of $77 million.

About the TerraCom share price

TerraCom is a resource company with a large portfolio of assets in Queensland as well as South Africa. The business is currently undergoing a growth strategy to become a mid-tier player in the coal industry.

The TerraCom share price has continued its upwards trajectory, reflecting positive investor sentiment in the company. Over the past 12 months, its shares have risen by more than 66% with year-to-date up 32%.

On valuation grounds, TerraCom has a market capitalisation of around $169.5 million and roughly 753.6 million shares on issue.

The post The TerraCom (ASX:TER) share price is up 7% on Monday. Here’s why appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) share price lifts as iron ore prices rebound on Monday
• ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps
• Here’s why the Poseidon (ASX:POS) share price is sliding today
• Here’s why the Creso Pharma (ASX:CPH) share price is leaping 9% today
• What’s going on with the 4DS Memory (ASX:4DS) share price?

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 Poseidon Nickel Ltd (ASX: POS) share price is dropping in early trade today after the company released a key announcement on its Black Swan site.

At the time of writing, shares in the nickel mining company are changing hands at 10 cents each which is around a 5% loss from the open.

That’s a significant drop this morning after Poseidon shares started the day in the green before the jitteriness from investors crept in.

Here’s what we know from Poseidon’s camp today.

Poseidon Nickel share price slumps after exploration update

Poseidon outlined several takeaways regarding exploration and drilling progress at its Black Swan site.

It revealed two underground rigs are testing the “potential down plunge Silver Swan extensions and infilling existing inferred resources” at its Silver Swan resource drilling program.

The existing Silver Swan resources contain a total of “16kt Ni (Nickel) averaging 9.5% Ni spread over three resources”.

These are the Tundra-Mute, Peking Duck, and Fledgling-Canard resources that are each covered in detail throughout Poseidon’s update.

In addition, after Poseidon’s downhole EM program completed an up plunge of its Golden Swan site, it explained there was “no significant anomalism detected”.

Yet, it maintains that “prospectivity remains in untested areas of the Southern Terrace”.

In respect to the Golden Swan resource, there’s a delay in the finalisation of the maiden resource due to “unforeseen circumstances”.

Investors can expect results of the maiden resource at this site to be released in the last week of October, according to the company’s update.

Lastly, regarding its “Fill the Mill Strategy”, work is continuing on its Bankable Feasibility Study on a 1.1Mtpa processing plant.

The ‘base feed’ for the study is “a combination of Black Swan open pit ore and Silver Swan Tailings” to be complemented with “high grade ore from both Golden Swan and Silver Swan”.

Notably, Poseidon needs to first record a resource at its Golden Swan site to include in the base feed for the study.

What did management say?

Regarding the Fill the Mill Strategy, Poseidon Nickel managing director and CEO Peter Harold said:

The Fill the Mill Strategy for the Black Swan restart requires good confidence in our high-grade resources at both Silver Swan and Golden Swan so the mining studies can maximise the mining inventory and generate accurate mining schedules to assist in de-risking the restart.

Also touching on mineralisation finds at the project, Harold added:

New DHEM platforms have been established down plunge of the Silver Swan mineralisation and these are awaiting a geophysical crew to undertake the survey. The results of the survey could provide targets for extensional drilling. In the meantime, we have identified a good zone of mineralisation below the Black Swan open pit from previous RC drilling, undertaken in 2019, which could present an opportunity to increase the size of the pit and extend the proposed open pit mine-life. We can drill this zone from underground and will redeploy one of the underground rigs to undertake that drilling.

Poseidon Nickel share price snapshot

The Poseidon Nickel share price has delivered an outsized return of 54% since January 1, extending its gains in the last 12 months to 19%.

That’s roughly in line with the S&P/ASX 200 Index (ASX: XJO)’s return of about 21% in that time.

The post Here’s why the Poseidon (ASX:POS) share price is sliding today appeared first on The Motley Fool Australia.

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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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