Category: Stock Market

The Ansell Limited (ASX: ANN) share price tumbled to an 18-month low today. But several leading brokers reckon this is the time to buy its shares.

Shares in the glove maker shed 2.6% to $30.51 when the S&P/ASX 200 Index (Index:^AXJO) closed 0.8% stronger on Friday.

The Ansell share price hasn’t been this weak since May last year and investors are dumping it after yesterday’s annual general meeting.

Ansell share price hit by uncertainty

Management stuck to its FY22 guidance and said that earnings per share (EPS) could drop 9% or increase by 2%.

That’s an unusually big range and doesn’t do much for investor confidence. The upside to downside ratio doesn’t look enticing either on first blush.

While investors aren’t impressed by the commentary at the AGM, a number of brokers come out to reiterate their “buy” recommendation on the company.

Why the Ansell share price is still a buy

“Management flagged earnings will be 2H weighted, on near term COVID costs, inflationary pressures and price adjustments needing time to flow through,” said Morgans.

“While the company is coming off COVID highs, those gains only relate to certain areas of its portfolio (ie Exam/single use gloves) so are unlikely to be entirely reversed, with increased investments reflective of management’s confidence in the long term potential of the business.”

Morgans has an “add” recommendation on the Ansell share price with a 12-month price target of $41.87 a share.

Margin pressure no deterrent

Meanwhile, Morgan Stanley is another with a bullish rating on Ansell. This is despite management warning of price pressure and skinnier margins. The margin squeeze in the first half is attributed to manufacturing constraints, elevated freight and price increases.

But the broker reckons there is too much bad news priced into the Ansell share price. It repeated its “overweight” rating on the shares with a 12-month price target of $51.35.

“Given a pronounced 2HFY22 skew, we believe the jury will remain out on ANN’s FY22guidance until at least the 1HFY22results and associated early read on 2HFY22trends,” said Morgan Stanley.

“At the current levels, ANN’s share price implies no permanency to any benefit from the pandemic to market share or market size.”

Bad news more than priced in

The analysts at Citigroup also believes the Ansell share price is oversold. This is despite the fact that the broker has cut its earnings forecast for the group.

“The issue for companies that have benefitted from the pandemic is that earnings will likely decline for the next few years,” said Citi.

“It is not obvious that there will be a catalyst over the next six months for the stock to re-rate despite its valuation.

“However, we expect that once the market focuses on the industry fundamentals post pandemic, we should see a re-rating to more normal PE multiples.”

Citi maintained its “buy” recommendation on Ansell but lowered its price target to $45.50 from $46.50.

The post Brokers think the tanking Ansell (ASX:ANN) share price will rebound appeared first on The Motley Fool Australia.

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• These 3 ASX 200 shares are topping the volume charts this Thursday

Motley Fool contributor Brendon Lau owns shares of Ansell Ltd. 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 Ansell 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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Shares in mineral exploration company Metal Hawk Ltd (ASX: MHK) charged lower today to finish down 23%.

To close the session, the Metal Hawk share price was down at 32 cents, following a company update on its Berehaven Nickel project.

Metal Hawk reported it has completed a round of drilling at the Commodore nickel sulphide prospect located at the project.

The company has received assay results from the first diamond drill hole at the site. One hole intersected a concentration of 2.32% Nickel from 203.8 metres to 207.2 metres.

Here are the details out of the company’s corner today.

What did Metal Hawk announce?

The company provided assay results from four holes it had drilled at the site for 1,210 metres.

Judging from the commentary, the results were a mixed bag for Metal Hawk. One of the holes, BVD003 “did not intersect ultramafic rocks” and suggests the “fertile Commodore ultramafic unit to the south may be offset by up to 200m”.

Additional assay results from hole BVNC007 intersected a 3 metre zone of disseminated nickel sulphide mineralisation, grading 1.26% Ni from 165m.

The company will follow up this result very shortly with additional reverse circulation (RC) drilling, per the release.

Hole BVNC006, located at the north end of the Commodore site, intersected a 13 metre thick zone of high magnesium oxide (MgO) ultramafic rocks from 151m to 164m – but no mineralisation was observed.

Assays are pending for two separate drill holes which the company hopes will build on the additional test work it has received in recent times.

Investors haven’t bought on the news and don’t appear to be buying the results either. It is unclear if the market was expecting a better set of outcomes.

What else went down today?

Checking market quote data on the terminal provided by Bloomberg Intelligence, we see an abnormal amount of trading on Metal Hawk shares relative to previous days.

There was a total of 10 trades of over 140,000 Metal Hawk shares today, with one huge lot of 377,919 shares.

In fact, there was a total of 3,011,653 Metal Hawk shares traded today, over 950% more than its 4-week average volume, and a whopping 5,286% more than Thursday.

Not only that, this volume is 6.37% of Metal Hawk’s total share float. This equates to a total value of $1.07 million in the company’s shares that were bought and/or sold today.

With this type of market activity, in such enormous volumes relative to historical averages for Metal Hawk, the picture starts to form as to what might have pulled the rug from investors today.

What’s next for Metal Hawk?

Following completion of the drilling program, follow-up drilling is set to be carried out.

For instance, RC drilling is due to recommence shortly with a number of holes designed to test the position of the “fertile Commodore ultramafic unit”.

Aircore drilling is also underway as the company continues to explore prospective zones to the north and south of Commodore.

In addition, Programme of Works (PoW) applications have been submitted for additional regional drilling within the Company’s tenements.

Metal Hawk share price snapshot

In the past 12 months, the Metal Hawk share price has gained 27% after rallying a further 43% this year to date.

Both of these results are well ahead of the S&P/ASX 200 index (ASX: XJO)’s gain of around 16% in the last year.

The post Here’s why the Metal Hawk (ASX:MHK) share price crashed 23% today appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX shares today
• BARD1 (ASX:BD1) share price ends stellar day up 41%
• The Macquarie (ASX:MQG) share price has gained 40% this year. Is it still good value?
• Here’s why the Vection (ASX:VR1) share price has boomed 40% in 2 days
• Itech Minerals (ASX:ITM) share price rockets 21% on rare earth update

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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Today, the S&P/ASX 200 Index (ASX: XJO) finished the week on a positive note, breaking a four-day red streak. At the end of the session, the benchmark index finished 0.92% higher at 7,449.8 points.

The stars aligned for commodities overnight as oil, gold, and iron ore prices lifted. In response, both ASX-listed miners and oil companies had a good showing to cap off the week. Following closely behind were tech names and consumer staples. The only sector not able to push higher on Friday was healthcare.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Pexa Group Ltd (ASX: PXA) was the biggest gainer today. Shares in the electronic conveyancing company surged 7.3% after its largest shareholder, Link Administration Holdings Ltd (ASX: LNK) received another takeover offer today. Find out more about Pexa Group here.

The next biggest gaining ASX share today was James Hardie Industries PLC (ASX: JHX). Shares in the materials manufacturer rose 5.29% despite no announcements from the company. However, investors might still be trading off of the record quarterly result released on Tuesday. Uncover the latest James Hardie details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Pexa Group Ltd (ASX: PXA)	$17.06	7.30%
James Hardie Industries PLC (ASX: JHX)	$56.55	5.29%
Champion Iron Ltd (ASX: CIA)	$4.47	5.18%
IGO Ltd (ASX: IGO)	$9.89	5.10%
Imugene Ltd (ASX: IMU)	$0.585	4.46%
Pilbara Minerals Ltd (ASX: PLS)	$2.44	4.27%
Orica Ltd (ASX: ORI)	$15.39	4.06%
Zip Co Ltd (ASX: Z1P)	$5.93	4.04%
Uniti Group Ltd (ASX: UWL)	$4.035	4.00%
Rio Tinto Ltd (ASX: RIO)	$92.34	3.59%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

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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. owns shares of and has recommended Link Administration Holdings Ltd and ZIPCOLTD FPO. The Motley Fool Australia has recommended Uniti Group 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 BARD1 Life Sciences Ltd (ASX: BD1) share price was a very strong performer on Friday.

At one stage, the diagnostics company’s shares were up as much as 44% to $1.43.

The BARD1 share price gave back some of these gains but ultimately ended the day 41% higher at $1.40.

Why did the BARD1 share price rocket higher?

Investors were bidding the BARD1 share price higher today following the release of an update on a patent.

According to the release, US Patent No: 11137402 titled “Lung Cancer Diagnosis” has been issued by the United States Patent and Trademark Office.

The issued patent covers methods for detecting antibodies to BARD1 peptides, methods for diagnosing lung cancer, and kits for lung cancer diagnosis.

It certainly has been a long time coming. The release explains that patent application was filed in November 2014 and will be active until February 2035. This gives BARD1 plenty of time to seek to monetise the technology in the massive US market.

BARD1’s CEO, Dr Leearne Hinch, appeared to be pleased with the news.

She said: “This patent family enforces intellectual property protection in the US for a potential BARD1-Lung cancer test that detects autoantibodies associated with lung cancer.”

What is BARD1?

BARD1 describes itself as an Australian diagnostics company with an innovative portfolio of diagnostic technologies and products.

It is focused on developing and commercialising diagnostic solutions for healthcare professionals and patients. The company has commercialised the hTERT test used as an adjunct to urine cytology testing for bladder cancer and the EXO-NET pan-exosome capture tool for research purposes.

In addition, it has a cancer diagnostic pipeline which includes tests in development for ovarian and breast cancers, and research-stage projects for prostate and pancreatic cancers.

The BARD1 share price has now more than doubled in value in 2021.

The post BARD1 (ASX:BD1) share price ends stellar day up 41% appeared first on The Motley Fool Australia.

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• BARD1 Life Sciences (ASX:BD1) share price leaps 16% on US patent news

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 Macquarie Group Ltd (ASX: MQG) share price has been an outstanding performer over the past 12 months. But is the investment bank’s future growth baked in now after a year of strong gains?

In afternoon trading on Friday, Macquarie shares bounced above the $200 mark once again.

On a year-to-date basis, the share price is up 42.7%. For anyone lucky enough to have picked up shares at the 52-week low of $126.51 in January 2021, their return on investment (ROI) is an impressive 59%.

Despite this exceptional performance, two fund managers think there’s still more on the table. Let’s take a look at what they think of the Macquarie share price going forward.

More good times to come for the Macquarie share price?

The past year has been a very rewarding period for investors in the ASX financial sector. In fact, the sector has been the market’s best performer. This is thanks to a strong bounceback in bank revenue and earnings following encouraging monetary policy from the central bank.

Macquarie Group has also been a beneficiary of the improving economic situation globally. In its FY22 first-half result, the company reported a more than doubling of its net profit, increasing 107% to $2.04 billion.

At the same time, assets under management increased 31% to A$737 billion at the end of September. Considering the level of growth, investors might be cautious of reversal, or at least a slowdown, in the business.

However, two fund managers recently shared optimistic perspectives for the Macquarie share price.

In an interview with Livewire, Pengana’s Rhett Kessler and Alphinity’s Stuart Welch both gave the ASX-listed investment bank a buy.

For Welch, the bank offers a well-managed business that has a strong track record for adapting to changing times. The fundie suggested the shift towards green investments is simply another iteration within the company’s journey, as it becomes a major player in net-zero emission ambitions.

Adding to this, Welch noted:

The retail side is taking share from the majors with better service levels and standards. In many respects, the business is doing really well and looks pretty reasonably valued. So it’s a buy for us.

Kessler also tagged the Macquarie share price a buy. While agreeing with Welch, Kessler added that Macquarie maintains strong talent within the company. Given the amplifying contest for talent, the fundie considers the investment bank well-positioned on this front.

The post The Macquarie (ASX:MQG) share price has gained 40% this year. Is it still good value? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group 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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Shares in software company Vection Technologies Ltd (ASX: VR1) are charging higher to trade 22% in the green at 19.5 cents.

Vection shares have swung upwards in almost vertical fashion in the past 2 days after the company released its enterprise sales and FY22 total contract value (TCM) update as of 9 November FY22 on Wednesday.

In its report, the company recognised strong sales growth inits defence, military and law enforcement segment. This was backed by strengths in its AEC and real estate divisions.

Let’s take a closer look.

But first – what is Vection?

Vection Technologies is a multinational software company that focuses on real-time technologies to help companies in their digital transformation.

Through a combination of 3D, Virtual Reality, Augmented Reality, and CAD solutions, Vection claims it can help companies and organisations to innovate and create value.

At the time of writing, Vection has a market capitalisation of $165 million.

Vection share price soars on growth momentum

The company grew both its military, defence and law enforcement plus AEC & real estate divisions since last reporting its FY22 TCV.

During October, the company saw a 58% growth in FY22 TCV compared to its FY22 first quarter values.

As it stands at 9 November, the company’s TCV is at approximately $8 million, with a strong pipeline of opportunities underpinning its FY22 outlook.

Vection attributes the bolus of growth in contract value to the adoption of its artificial intelligence (AI) integrated solutions through partner channels in the defence segment from the Middle East.

It expects individual sales that are driving the TCV growth to complete within various dates by the end of December 2021.

The release also notes that “quarterly cash receipts may vary depending on the solution and/or service provided to the end customer, and any individually material contract award will be separately announced to the market as applicable”.

Separately, the company’s XR integrated technology suite is “strategically positioned to drive enterprises’ digital transformation”.

Curiously, Vection also reckons this digital transformation is accelerated by the recent ‘metaverse’ trends observed in software circles.

The metaverse has recently been defined by newly Facebook’s (Now Meta) Mark Zuckerberg as a place where one can meet, attend meetings, work and even play using a VR headset, glasses or a smart device.

Put simply it is a virtual version of the real world. And Vection reckons recent momentum in the industry will bode in well for its earnings potential moving forward.

Investors have been quick to secure a spot in Vection’s equity on the back of the results, sending its share price from a low of 14 cents to the current market price in just 2 days.

Vection share price snapshot

In the past 12 months the Vection share price has climbed 56% after rallying over 62% this year to date.

Each of these returns are well ahead of the benchmark S&P/AX 200 index (ASX: XJO)’s return of around 16% in that time.

The post Here’s why the Vection (ASX:VR1) share price has boomed 40% in 2 days appeared first on The Motley Fool Australia.

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• Why the Vection (ASX:VR1) share price lifted 9% on Friday

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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Shares in halloysite-kaolinite and graphite player Itech Minerals Ltd (ASX: ITM) are roaring today and now trade up 21% at 29 cents.

Itech shares have been in the green all session following a company update on its interests at the Eyre Peninsula Kaolin Project in South Australia.

The company has received analytics on the first batch of 10 historical drill hole samples at the Ethiopia Prospect, located at the Peninsula.

Results show significant total rare earth element oxides (TREO) in all 10 holes and over 1,100 parts per million (ppm) of total rare earth element oxides in clay fraction.

With these results, let’s analyse the extent of what Itech released today.

Why is the Itech Minerals share price charging higher?

For a bit of background, Adelaide Exploration Ltd first identified thick intervals of high purity kaolin clay at the site in 2007 over an area of 1km squared.

A preliminary 10 holes were sub-sampled at the time to assess potential of resource and mineralisation, and there were some notable results obtained.

Itech has since resampled the 10 holes and undertaken a kaolin beneficiation process, which has led to an upgrade in the average rare earths grade by 184%.

The results obtained from the resampling confirm Itech’s view “of the dual potential for high purity kaolin and coincident ion adsorption clay (IAC) rare earth element (REE) mineralisation”.

Specifically, the TREO were found in each of the 10 holes sampled, with an average beneficiation to 180% in the clay fraction.

The rare earth’s intersected display a large percentage of neodymium and praesidium. Both are critical elements for the production of permanent magnets in electric vehicles and renewables.

In its own analysis, Itech explained that the rocks found at the Ethiopa prospect are naturally enriched with both of these rare earths, in addition to a mineral called feldspar.

Over millennia, the rocks become weathered by rain and organic matter and end up producing slightly acidic groundwater. It is this phenomenon that sees the feldspar converted to kaolin clay, where the ‘tightly bound’ rare earths then disperse throughout the clay minerals.

One benefit of this occurrence, Itech says, is that contaminants like uranium and iron are removed by the weathering process, “leaving the rocks enriched in kaolin clays with loosely bound [rare earth’s] and quartz grains”.

What’s next for Itech Minerals?

Now that it has confirmed the bolus of its hypothesis, the company has since resampled an additional 12 drill holes to analyse for the “full suite” of rare earths.

It is analysing the holes with values of the element Cerium – also a rare earths element – above 100ppm.

One hole, labelled ETH-029, has a concentration of over three times the Cerium in the best samples submitted for analysis to date.

Results from the sampling are expected to take 5–6 weeks according to Itech, as it concurrently awaits further drilling approvals.

Itech says the results from this round of test work will help focus the drilling program on areas with the best potential to strike resource and mineralisation.

What did management say?

Speaking on the announcement, Itech Minerals managing director, Mike Schwarz said:

The nature of high purity kaolin and REE mineralisation at Ethiopia opens the path for the potential of an extremely low-cost source of these two critical minerals. Processing of the high purity kaolin increases the REE grades and extracting the REEs makes a higher quality kaolin product, potentially leading to more financially robust project economics.

After listing in late October, Itech has already gained 42.5% for early investors. Whilst it is still early days, this is well ahead of the benchmark S&P/ASX 200 index (ASX: XJO)’s return in that time.

The post Itech Minerals (ASX:ITM) share price rockets 21% on rare earth update appeared first on The Motley Fool Australia.

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• Broker upgrade sends Coles (ASX:COL) share price surging higher
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• Why are ASX 200 resources shares booming again on Friday?

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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The Coles Group Ltd (ASX: COL) share price is ending the week in style.

In afternoon trade, the supermarket giant’s shares are up almost 3% to $18.00.

Why is the Coles share price racing higher?

The catalyst for the rise in the Coles share price on Friday appears to have been a bullish broker note out of Citi.

According to the note, the broker has upgraded the company’s shares to a buy rating with an improved price target of $19.60.

Based on the current Coles share price, this implies a potential return of 9% for investors before dividends. If you include dividends, the potential return stretches to approximately 12.5%.

What did the broker say?

Citi has been looking through the retail sector and has upgraded its estimates and recommendations to account for expected trading conditions post-COVID.

While this led to an upgrade for Coles, it has led to Citi downgrading Metcash Limited (ASX: MTS) shares to a neutral rating with a $4.10 price target. The broker has also retained its neutral rating and cut its price target on Woolworths Group Ltd (ASX: WOW) shares to $39.50.

Why does Citi prefer Coles?

Citi’s positive view on the Coles share price appears to be largely due to its valuation.

It recently commented: “Coles sales growth in Supermarket and Liquor accelerated in the last seven weeks compared to the first seven weeks update provided in August. Within Supermarkets, deflation of just 0.3% demonstrated improvement on 4Q21. The outlook for both inflation and volumes for the rest of FY22 is positive given supply chain cost pressures, moderating fruit deflation and pent up demand for gatherings of family and friends. […] We prefer Coles over Woolworths given the LFL sales growth differential is closing and Woolworths is trading at a ~25% premium to Coles.”

The post Broker upgrade sends Coles (ASX:COL) share price surging higher appeared first on The Motley Fool Australia.

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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 COLESGROUP DEF SET. 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) is on course to end the week on a very positive note. In afternoon trade, the benchmark index is up 0.85% to 7,444.3 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

Greenland Minerals Ltd (ASX: GGG)

The Greenland Minerals share price has crashed 34% to 8.3 cents. This morning the rare earths explorer revealed that the Greenland Government has passed new legislation concerning uranium mining. The new legislation prohibits preliminary investigation, exploration, and exploitation of uranium. It defines this as uranium content which occurs at 100 parts per million (ppm) or greater in the total resource. This essentially bans rare earths production, which can contain radioactive elements including uranium and thorium.

Liontown Resources Limited (ASX: LTR)

The Liontown Resources share price has fallen a further 3.5% to $1.58. Investors have been selling this lithium share following the release of its definitive feasibility study (DFS) for the Kathleen Valley Project. While the release notes that the project has a post-tax net present value (NPV) of $4.2 billion, investors appear concerned with the lofty long term lithium price the company is using as part of its valuation model.

Nearmap Ltd (ASX: NEA)

The Nearmap share price is down a further 3% to $1.83. This aerial imagery and location data company’s shares have come under pressure since the release of its guidance for FY 2022. Nearmap advised that it expects annual contract value (ACV) of between $150 million and $160 million on a constant currency basis in FY 2022. While this will be up 12% to 19% year on year, it is short of its medium to long term target of ACV growth of 20% and 40%.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price has continued to sink and is down a further 7% to $1.41. Investors have been hitting the sell button this week after the payments company downgraded its full year operating earnings guidance. Pushpay now expects operating earnings of US$62 million and US$67 million. This compares to US$66 million and US$71 million previously.

The post Why Greenland Minerals, Liontown, Nearmap, and Pushpay shares are tumbling lower appeared first on The Motley Fool Australia.

More reading

• Why the Greenland Minerals (ASX:GGG) share price is crashing 38% on Friday
• Why Liontown, Nearmap, Ramsay, and Xero shares are sinking today
• ASX 200 (ASX:XJO) midday update: Xero’s results and Nearmap’s guidance disappoint
• Nearmap (ASX:NEA) share price slips despite plan to boost contract value by 12%–19% in FY22
• Liontown Resources (ASX:LTR) share price sinks 9% after Kathleen Valley DFS

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 Nearmap Ltd. and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. and PUSHPAY FPO NZX. 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 oil and gas explorer Invictus Energy Ltd (ASX: IVZ) are having a stellar day in the green. At the time of writing, the Invictus Energy share price is trading 7.14% higher at 15 cents.

Invictus shares jumped from the open following a company announcement on its 80% owned Cabora Bassa project in Zimbabwe.

The preliminary results from surveys conducted at the site are promising according to Invictus. So let’s take a walk through and see what the release said.

What did Invictus Energy announce?

Following the completion of a seismic survey conducted at the Cabora Bassa site in early November. The company finalised the survey after collecting almost 840km of high resolution 2D data for processing.

Preliminary assessment by the geophysicists at seismic data specialist EarthSignal revealed encouraging results.

Petroleum giant ExxonMobil (NYSE: XOM) – just Mobil at the time – also uncovered a robust dataset in the 1990s at the site, per the company. Invictus is asking EarthSignal to reprocess this legacy data as well.

The announcement is likely a positive step forward for Invictus, as it claims the Cabora Bassa project is “potentially the largest, undrilled seismically defined structure onshore in Africa”.

Specifically, the results suggest a “clearly defined Muzarabini anticline structure and clear fault definition and deep reflectors below 4 seconds”.

Additional studies show amplitude anomalies in the shallower section of the Muzarabini structure and also up against the basin fault.

It is here where Invictus reckons it could find hydrocarbon bearing traps, as the amplitude anomalies described can often be indicative of the presence of hydrocarbons, it says.

What did management have to say?

Invictus’ managing director, Scott Macmillan was also encouraged by the results and is keen to progress forward in starting the upcoming drilling program scheduled for the first half of 2022.

Speaking on the announcement, Macmillan said:

Importantly, the initial processing results of the seismic acquisition has produced high quality data revealing a variety of structural and stratigraphic features providing for a target rich environment for the upcoming drilling program. The early indications from the preliminary seismic processing are very encouraging and particularly the strong amplitude anomalies observed in the Muzarabani structure and along the basin margin fault.

Macmillan continued:

While we look forward to the final processed products and interpretation of the entire CB21 Survey which will also enable better characterisation of the primary Upper Angwa target in the Muzarabani prospect, these initial results are encouraging as we progress with the selection of optimal drilling locations for the upcoming drilling campaign scheduled for 1H 2022.

The Invictus Energy share price has delivered the goods in the past 12 months, and has soared over 138% in that time.

It has also climbed almost 178% this year to date, a galaxy ahead of the benchmark S&P/ASX 200 index (ASX: XJO)’s return of around 16% in the last year.

The post Seismic results send the Invictus Energy (ASX:IVZ) share price surging 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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