Category: Stock Market

The Mesoblast Limited (ASX: MSB) share price soared earlier today. This came after news the company has requested to meet with the United States Food and Drug Administration (FDA) to discuss its chronic lower back pain medication.

Shortly after the opening bell, Mesoblast shares surged to $2.08 — 5.05% higher than its closing price yesterday. It has since settled lower to $2.01, up 1.52% at the time of writing.

According to Mesoblast, its drug would be an alternative therapy to opioids. This is important because excessive use of opioids is considered a major problem by US policymakers and regulators.

More than 50% of US opioid prescriptions are given to patients with chronic lower back pain.

Let’s take a look at today’s news from Mesoblast.

Mesoblast’s meeting with FDA

According to the release, the company has requested and expects to be granted, a meeting with the FDA in the September quarter.

In the meeting, Mesoblast and the FDA would discuss pathways to have rexlemestrocel-L approved for use in the United States.

The company recently completed a 404 patient phase 3 trial of rexlemestrocel-L. The trial saw rexlemestrocel-L successfully treating patients with chronic inflammatory back pain caused by degenerative disc disease.

According to Mesoblast, it will use the results from a future US-based trial to help achieve product approvals in the United States and the European Union.

To bypass the need for a European Union-based trial, Mesoblast envisages 20% of the trial’s patients will be European. Mesoblast states that including European patients in the trial will provide “regulatory harmonisation”, cost efficiencies, and a faster timeline.

To make it happen, the company has amended its collaboration agreement with Grünenthal, its partner in Europe and Latin America.

Mesoblast is likely to be eligible for payments of up to US$112.5 million before rexlemestrocel-L launches in the European Union. To be eligible, it must pass certain clinical and regulatory milestones and reimbursement targets.

The company states that the payments could reach a combined US$1 billion. However, that figure is dependant on the outcome of phase 3 studies and patient adoption. It will also receive royalties on product sales.

Commentary from management

Mesoblast’s chief medical officer, Dr Fred Grossman was quoted in the company’s release. He said:

We look forward to discussing with the FDA the most efficient path forward given the durable pain reduction for at least two years and the opioid-sparing activity from a single administration of rexlemestrocel-L that was observed in the recent Phase 3 trial.

Mesoblast share price snapshot

The Mesoblast share price needs all the good news it can get to boost its recent poor performance.

Currently, shares in Mesoblast are over 13% lower than they were at the beginning of 2021. They have also fallen around 40% since this time last year.

The company has a market capitalisation of around $1.29 billion, with approximately 647 million shares outstanding.

The post Mesoblast (ASX:MSB) share price surges 5% in early trade today 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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The Challenger Exploration Ltd (ASX: CEL) share price is surging 30% higher in early trade.

Shares in the exploration company are storming higher after reporting drilling results earlier today.

At the time of writing, the Challenger share price is trading around 25% higher at 27.5 cents after hitting an intraday high of 28.5 cents.

Lets take a look at Challenger’s drilling results and why investors are flocking to buy shares.

Challenger share price jumps on drilling results

Earlier today, Challenger released results from its ongoing rock saw channel sampling program from the company’s Hualilan Gold Project.

According to the announcement, Challenger reported its highest ever grades from the site. The company noted significant high-grade mineralisation in the 200 metres up-dip from current drilling.

The results cover approximately 300 metres of strike at Cerro Norte and are the first continuous channel samples taken above ground level.  

Challenger’s results from the Sanchez Fault approximately 100 metres up-dip from ground included;

• 15.6m at 71.7 g/t AuEq2 – 70.9 g/t gold, 59.1 g/t silver, 0.2% zinc including;
• 4.0m at 203.8 g/t AuEq2 – 201.6 g/t gold, 172.0 g/t silver, 0.1% zinc.

Sampling up-dip of previous channel sampling from the company’s main Cerro Norte Manto site returned;

• 64.8m at 28.3 g/t AuEq2 – 23.4 g/t gold, 104.1 g/t silver, 8.3% zinc including;
• 8.8m at 49.3 g/t AuEq2 – 45.2 g/t gold, 88.7 g/t silver, 6.8% zinc and;
• 26.5 m at 34.4 g/t AuEq2 – 29.3 g/t gold, 114.4 g/t silver, 8.2% zinc

Commenting on the results, CEL Managing Director, Mr Kris Knauer, said

“These are the best results we have seen at our Flagship Hualilan Gold Project – 4m at 201.6 g/t gold is outstanding. The results confirm our view that the strongest mineralisation is likely to be in the Hualilan Hills which are yet to be drilled.”.

Snapshot of the Challenger share price

Challenger is engaged in the exploration of gold and copper with operations in Ecuador and Argentina. The company’s flagship gold projects include the Hualilan Gold project in Argentina and El Guayabo/Colorado V Project in Ecuador. 

Earlier this year Challenger outlined plans for a fully-funded drilling program for its Hualilan Gold project. The company believes there is a historical resource of 627,000 ounces of gold.

The Challenger share price has been volatile in 2021. Shares in the company hit a high of 39.5 cents in mid-February. Since then the Challenger share price has rallied and dipped. Including today’s price action, the Challenger share price is up more than 34% for the year.

The post Why the Challenger (ASX:CEL) share price is storming 30% higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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 Ioneer Ltd (ASX: INR) share price is gaining today, up 1.43% after earlier posting gains of more than 6%.

Below we take a look at the details of the emerging lithium producer’s offtake agreement.

What did Ioneer announce?

In a mid-day release yesterday (when the Ioneer share price closed up 3%), Ioneer announced it had signed a binding offtake supply agreement with EcoPro Innovation Co Ltd. The agreement is subject to Ioneer reaching a final investment decision (FID).

EcoPro is the second largest manufacturer of nickel cobalt aluminium oxide (NCA) cathode materials in the world. It supplies cathodes to battery manufacturers.

Under the 3-year agreement, EcoPro will source lithium carbonate from Ioneer’s Rhyolite Ridge lithium-boron project in the US state of Nevada. It will then convert this into high purity lithium hydroxide.

Ioneer will deliver up to 7,000 tonnes per annum (tpa) of lithium carbonate to EcoPro over a 3-year period. This will comprise an initial 2,000 tpa with an option for 5,000 additional tpa, If both parties agree before Q1 2022.

According to the release, this is Ioneer’s first lithium offtake agreement. It represents approximately 34% of its total lithium carbonate output for the first 3 years of production. The company expects to start production towards the end of 2023.

Commenting on the agreement, Ioneer’s managing director Bernard Rowe said:

It is our first lithium offtake agreement and partnering with a recognised world leader in cathode materials manufacturing is a testament to the quality of our lithium carbonate. Following a pilot plant tour in mid-2019 and detailed testing of our product samples, we are pleased that EcoPro found that our materials meet its exacting standards…

EcoPro’s president Anthony Kim added:

Ioneer’s lithium carbonate is well suited for conversion to high purity lithium hydroxide with a minimal environmental footprint. The US location of Rhyolite Ridge, coupled with the growing importance of the EV sector, positions both companies to play an important role in the electrification of transportation in the USA.

Ioneer share price snapshot

Over the past 12 months, Ioneer shares have gained 173%. In comparison, the All Ordinaries Index (ASX: XAO) has posted 25% gains during this time.

Year-to-date the Ioneer share price has continued to outperform, up 26%.

The post Here’s why Ioneer’s (ASX:INR) share price is climbing higher appeared first on The Motley Fool Australia.

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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 Creso Pharma Ltd (ASX: CPH) share price has returned from its trading halt and stormed higher.

At one stage today, the cannabis and psychedelics company’s shares were up as much as 21% to 17 cents.

However, the Creso Pharma share price has since given back most of these gains and is currently up 3.5% to 14.5 cents.

Why was the Creso Pharma share price in a trading halt?

Creso Pharma requested a trading halt last Friday morning so that it could prepare a sales update. Though, it remains unclear why the company required so much time to prepare this one compared to previous updates.

According to the release, Creso Pharma generated a total of $1.7 million in revenue during the second quarter of calendar year 2021. This is up 24% on the revenue it generated during the first quarter.

Management advised that this growth was underpinned by strong demand for its Mernova craft cannabis products and Creso Pharma’s animal and human health CBD products. It also notes that multiple purchase orders from various Canadian provinces highlight increased demand for Mernova’s products and its scalable recurring revenue model.

Looking ahead, management believes the company has a positive sales outlook. It also sees its potential merger with Canada’s Red Light Holland as providing an opportunity for multiple new near term market entries and scale up opportunities.

Though, it is worth noting that the market’s response to this merger proposal has been extremely subdued. In fact, the Creso Pharma share price has lost almost 20% of its value since announcing the surprise merger plan. Therefore gaining shareholder approval for the merger is clearly far from guaranteed.

Non-Executive Chairman Mr Adam Blumenthal said: “Recent sales growth across the group is very pleasing and provides a very strong foundation for the remainder of 2021 and beyond. We look forward to providing further updates on revenue growth from our existing operations through new product launches and ongoing international expansion efforts.”

The post Why the Creso Pharma (ASX:CPH) share price is zooming 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 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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It was one step forward and one step back for the Commonwealth Bank of Australia (ASX: CBA) share price last month.

Shares in the leading bank rallied strongly by mid-June, hitting a new all-time high of $106.57 on 17 June.

Just as things were looking unstoppable for CBA shares, a sharp 7.4% sell-off to $98.06 between 18 and 21 June would erase their monthly gains.

The CBA share price finished last month at $99.87, down 6.3% from record all-time highs, but still eking out a small monthly gain of 0.41%.

CBA share price month in review

Australia’s economic recovery gathering momentum

The Reserve Bank of Australia (RBA) held its June monetary policy meeting on 1 June, where its board said:

The economic recovery in Australia is stronger than earlier expected and is forecast to continue.

The RBA also commented on the housing market, saying:

Housing markets have strengthened further, with prices rising in all major markets. Housing credit growth has picked up, with strong demand from owner-occupiers, especially first-home buyers. There has also been increased borrowing by investors. 

The positive news regarding the broader Australian economy may have been a contributing factor in helping the CBA share price perform strongly in early June.

Regulatory bodies flag “increased risk taking”

The Council of Financial Regulators (CFR), which includes heavyweight bodies the RBA, the Australian Prudential Regulation Authority, the Australian Securities and Investments Commission, and Treasury, held its quarterly meeting on 11 June, where it addressed potential housing market risks.

The quarterly statement highlighted:

APRA has written to the largest authorised deposit-taking institutions (ADIs) to seek assurances that they are proactively managing risks within their housing loan portfolios, and will maintain a strong focus on lending standards and lenders’ risk appetites.

Despite “signs of some increased risk taking recently”, the CFR said overall lending standards “remain sound”.

The quarterly meeting statement was released on 17 June. The CBA share price would go on to tumble 7.4% over the next two trading sessions to a low of $98.06.

Looming interest rate hikes

Westpac Banking Corp (ASX: WBC) believes the RBA could begin raising interest rates as soon as 2023.

In theory, banks can pass on the higher interest rate to borrowers, and experience an increase in profitability as net interest margins expand.

However, higher interest rates could also slow economic growth as borrowing rates tighten.

Concerns over higher interest rates took their toll on the broader market, with the S&P/ASX 200 Index (ASX: XJO) tumbling 1.81% on 21 June. The heavy selling was driven by losses in cyclical and defensive sectors including financials, industrials and utilities.

On this day, the CBA share price took a 5.4% tumble to $98.06. At the time of writing on the first day of the new financial year, Commbank shares are trading 0.88% lower at $98.99.

The post Why the CBA (ASX:CBA) share price pulled back from record highs in June appeared first on The Motley Fool Australia.

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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 Auckland International Airport Limited (ASX: AIA) share price is edging lower in afternoon trade. At the time of writing, the share price of the airport is down 0.59% to $6.72.

Below we take a look at the ASX travel share’s latest trading update.

What did the trading update report?

Auckland Airport’s share price is sliding after the company reported on the continuing uncertainty to its business outlook due to COVID-19. It said international travel numbers are expected to be impacted for the rest of 2021 as people remain unsure about potential future border restrictions.

Adrian Littlewood, Auckland Airport’s CEO, pointed to the new outbreaks in Australia as undermining passenger confidence. Littlewood said domestic and Cook Islands passenger demand was strong, while international demand was at “historically low levels”

Littlewood said that the path to recovery, as evidenced overseas, is via widespread vaccination. He added:

In line with this, the international passenger recovery in New Zealand is unlikely to materially change until the vaccination program rolls out to a significant number of New Zealanders across the next few months.

As a result, international passenger numbers and those business lines linked to passenger volumes, including retail and transport, may remain very subdued for the remainder of the calendar year. However, we do expect steady recovery from early in calendar year 2022.

The company is continuing to support retailers at its international terminals with ongoing rent relief. Littlewood said that due to the slower than initially expected return in passenger numbers, retail income will continue to be impacted at the airport. Total retail income for the 2022 financial year is forecast to be $25–35 million.

Auckland Airport has already increased its operations in anticipation of a full reopening, along with accelerating repairs and maintenance. It forecast operating costs being in the range of $160–175 million in the 2022 financial year.

After repaying $65 million in February, Auckland Airport has now repaid the remaining $425 million of its USPP borrowings.

Commenting on the repayment, Littlewood said, “When combined with the cancellation of cross-currency hedges associated with the USPP borrowings as well as some future fixed interest rate hedges this is expected to reduce Auckland Airport’s 2022 financial year interest expense by around $10 million.”

Earnings guidance for the 2021 financial year is unchanged, with a forecast loss after in the range of $35–55 million.

Auckland Airport share price

While still down more than 23% from its pre-COVID levels, the Auckland Airport share price has gained 13% over the past 12 months. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 23% in that same time.

Year-to-date the Auckland Airport share price is down 5%.

The post Auckland Airport (ASX:AIA) share price dips in afternoon trade appeared first on The Motley Fool Australia.

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the financial year in a disappointing fashion. The benchmark index is currently down 0.3% to 7,289.8 points.

Here’s what is happening on the market today:

SEEK changes CEO

The SEEK Limited (ASX: SEK) share price hit a record high this morning. This follows confirmation that SEEK’s co-founder Andrew Bassat has stepped down as CEO and been placed by former Commonwealth Bank of Australia (ASX: CBA) CEO, Ian Narev. In addition to this, the job listings company hinted that it might announce a demerger of its SEEK Investments business in August with its full year results.

IGO rises on $1.9 billion transaction completion

The IGO Ltd (ASX: IGO) share price climbed to a decade-high this morning after completing its transformational transaction to form a new lithium joint venture with Tianqi Lithium. The $1.9 billion transaction sees the company acquire a 49% non-controlling interest in Tianqi Lithium Energy Australia, providing it with a 24.99% indirect interest in world-class Greenbushes Lithium Mining and Processing Operation. It also gives IGO a 49% interest in the Kwinana Lithium Hydroxide Plant.

Lendlease downgrades guidance

The Lendlease Group (ASX: LLC) share price is trading lower today after the international property and infrastructure company downgraded its guidance. According to the release, the pandemic’s resurgence in the UK has resulted in a delay in its expected timing to secure an investment partner for its International Quarter London. As a result, it is expecting a core operating profit of between $375 million and $410 million after tax for FY 2021.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Regis Resources Limited (ASX: RRL) share price with a 5.5% gain. Regis is one of a number of gold miners charging higher today despite a relatively flat gold price. The worst performer has been the Metcash Limited (ASX: MTS) share price with a 5% decline. This morning its shares traded ex-dividend for its fully franked final dividend.

The post ASX 200 down 0.3%: SEEK record high, IGO jumps, Lendlease downgrade 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 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 Damstra Holdings Ltd (ASX: DTC) are flying today after the company announced it has secured a new $20 million debt facility. At the time of writing, the Damstra share price is 88 cents – 6.02% higher than its previous closing price.

Damstra is a software company providing workplace management solutions and safety requirements.

Let’s take a closer look at today’s news from Damstra.

New debt facility

According to Damstra, the new debt facility will put it in a better position to fund its future growth.

Additionally, the new facility offers more flexible covenants and interest-only repayments. Damstra states this will improve its operating cashflow and provide extra capital to support its global growth ambitions.

Damstra’s new facility is with San Francisco-based Partners for Growth (PFG). PFG specialises in funding growing technology companies.

Previously, Damstra had a debt facility with Westpac. That facility was drawn down to $3.7 million.

That debt has now been transferred to Damstra’s facility with PFG, leaving it with access to around $17 million of additional capital.

Damstra’s PFG debt facility is for 36 months with fixed interest rates for the life of it. To pay its exisiting debt, Damstra will use an initial drawn down tranche at a fixed interest rate of 7.85%.

As part of its agreement with PFG, Damstra will issue the funding provider warrants. The warrants will be exercisable into up to roughly 1.6 million shares.

The warrants’ exercise prices will represent a premium of between 20% and 50% on the five-day weighted average price of Damstra shares prior to today’s announcement.

Commentary from management

Damstra’s CEO Christian Damstra said of the company’s new debt facility:

The outlook for Damstra has never been better as we continue to successfully execute our strategy. Partners for Growth and their strategic partner, the Silicon Valley Bank, have a strong track record of supporting high-growth technology companies, and we look forward to working with them as we look to capture the huge growth opportunity for our business around the world.

Damstra share price snapshot

This year has been a tough year for the Damstra share price. It has fallen 42% since the year began.

It has also dropped 33% since this time last year.

The company has a market capitalisation of around $155 million, with approximately 186 million shares outstanding.

The post The Damstra (ASX:DTC) share price is soaring today. Here’s why 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. owns shares of and has recommended Damstra Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Damstra Holdings 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 IPH Ltd (ASX: IPH) share price is climbing today following an acquisition update by the intellectual property services provider.

During late morning trade, IPH shares are fetching for $8.03, up 2.95%. In comparison, the All Ordinaries Index (ASX: XAO) is flat at 7,587 points for the day.

Acquisition update

Investors are snapping up IPH shares after the company announced it has expanded its digital and trade mark capability.

According to its release, IPH advised it will acquire leading Australian online automated trade mark application platform, Applied Marks.

Under the transaction, IPH will pay upfront cash consideration of $5 million for Applied Marks. In addition, up to $2.1 million will be payable from two years after the completed transaction. This is based on Applied Marks achieving set out minimum performance targets.

The newly added company will continue to operate existing platforms, but also extend into other areas of revenue growth. The resources and technology acquired from the deal are expected to contribute to a new Digital Services function within the group.

IPH CEO, Dr Andrew Blattman commented:

The acquisition of Applied Marks accelerates our digital capability while allowing us to address an expanded market. It bolsters our ability to participate in the online automated IP services space, and will support us to evolve our traditional trade mark offering in line with the changing market.

Over time we expect to harness this digital expertise in related areas of IP and use those tools to support a more seamless interaction amongst providers, clients and regulatory authorities to generate further efficiencies for our teams and our clients across the regions in which we operate.

IPH share price summary

In 2021, IPH shares gained around to 25%, and around 8% over the past year. The company’s share price has noticeably trekked higher since the start of June, up 16% for the month.

IPH presides a market capitalisation of roughly $1.7 billion, with more than 217 million shares on its books.

The post Why is the IPH (ASX:IPH) share price is edging higher today appeared first on The Motley Fool Australia.

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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 recommended IPH Ltd. The Motley Fool Australia has recommended IPH 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 Worley Ltd (ASX: WOR) share price is in the red today. The price movement comes despite the company being awarded a new contract to maintain a wind farm.

At the time of writing, shares in the global engineering company are down 2.59%, trading at $11.65. In comparison, the S&P/ASX 200 Index (ASX: XJO) is currently 0.22% lower.

Let’s take a closer look at today’s news.

What did Worley announce?

In a statement to the ASX, Worley says it has been awarded “two operations and maintenance services contracts” for 6 wind farms in Victoria owned by Pacific Hydro.

Worley will provide “full asset management, operations, and maintenance services” for nearly 200 wind turbines and other equipment. The term of the contract is 10 years for half the sites and 5 years for the remainder. Worley did not disclose the value of the contract.

The Worley share price also fell on Tuesday, when the company announced the signing of a new contract.

Management commentary

Worley CEO Chris Ashton said:

We are pleased that Pacific Hydro has chosen to continue its long-term relationship with Worley and extend our role in supporting the generation of renewable energy on these wind farms.

As a global company headquartered in Australia, we are helping our customers adapt to the world’s changing energy needs through bringing Worley’s global expertise and capability in renewable energy.

Worley share price snapshot

The Worley share price has increased 32.3% over the past 12 months but it still has not recovered since the COVID market crash of March last year.

On the first trading day of 2020, Worley shares finished that day at $15.34. The current share price of around 11.6% is some 20% lower than that level.

In fact, in the last 52 weeks, the highest point the Worley share price has reached is $14.01.

Worley Ltd has a market capitalisation of around $6.3 billion.

The post Worley (ASX:WOR) share price drops on latest contract award appeared first on The Motley Fool Australia.

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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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