Category: Stock Market

The Octanex Ltd (ASX: OXX) share price is surging today after the company announced its exploration program funding has been secured.

Octanex shares are currently trading 11.66% higher at 6 cents per share, after lifting by as much as 28% earlier today.

Octanex is a microcap oil and gas company engaged in exploring and production activities in offshore Western Australia. The company’s projects include the Ophir oil field, Greater cornea fields, and the Ascalon gas discovery.

Octanex’s new exploration funding

The company raised the exploration funds through successfully completing a capital raising placement. The placement consisted of 15,000,000 ordinary fully paid shares at 5 cents per share with one-for-two unlisted options, to raise $750,000 (before costs).

The company acquired the capital through sophisticated and professional investors, which were introduced through a private equity firm.

According to the company, the funds raised will be used to advance exploration at the company’s projects, particularly its Sefton Project initiative where the company has established an extensive tenement position in this region where there is very little modern exploration.

Octanex management comments

Octanex Chair, Geoff Albers, explained further how the funds will be used:

The placement funds will be used to advance our knowledge of the company’s Sefton Project tenements. It will be an exciting period ahead for Octanex as we initiate our planned programs to unlock the geology of our tenements. Octanex thanks new and existing shareholders for their support. We look forward to delivering on our exploration programs.

Octanex share price snapshot

The Octanex share price has lost 17% overall the past week despite today’s huge gains, but is still up a whopping 120% this month, and 450% over the past 12 months.

More reading

• Resimac (ASX:RMC) share price lifts after settling another $1 billion deal
• APA (ASX:APA) share price falls despite expansion and new agreement
• Why the Podium Minerals (ASX:POD) share price soared 27% today
• Top broker tips Super Retail (ASX:SUL) share price to smash the market
• Afterpay (ASX:APT) share price tumbles despite investor presentation

Motley Fool contributor Lucas Radbourne-Pugh 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 APA Group (ASX: APA) share price is down today despite the company announcing two positive updates.

At the time of writing, the energy infrastructure company’s shares are swapping hands for $9.98, down 0.30%.

Let’s take a closer look and see what APA released to the ASX.

East Coast Grid pipeline network expansion

According to its release, APA advised that it will begin expanding capacity on its East Coast Grid. This will link Queensland with southern markets. This follows a Final Investment Decision (FID) that was reached on the project due to strong customer demand for transportation capacity.

APA projected that without investing in the East Coast Grid, winter gas supply risks could arise from 2023. This was taken in the context of existing contract positions and available capacity, along with market forecasts.

The expansion will be undertaken in two stages, and incur a capital cost of around $270 million. Once completed, winter peak capacity will increase by up to 25% through additional works on both the Southwest Queensland Pipeline (SWQP) and the Moomba Sydney Pipeline (MSP). Both projects are critical in delivering gas from Queensland and the Northern Territory to southern markets.

The first stage of the East Coast Grid is expected to be finished within the first quarter of 2023. The second stage will be staged to meet customer demand, with completion towards the end of that same year.

APA noted that a potential third stage could be included, adding a further 25% transportation capacity. Engineering and design works are continuing to lay out the project scope and format.

APA CEO and managing director, Rob Wheals commented:

Through the investments we’re making today in the staged 25% expansion of the East Coast Grid, APA is playing a critical role in delivering additional energy security for southern gas markets ahead of forecast supply risks.

Today’s announcements reinforce the competitiveness of APA’s East Coast Grid and the critical role it plays in delivering for our customers and for the economy through cost effective, safe and reliable transportation of Australian domestic gas from northern gas producers to southern markets.

New East Coast Grid agreement

In further news, APA revealed that it has signed a new deal with a leading energy provider, Origin Energy Ltd(ASX: ORG).

The Gas Transportation Agreement (GTA) will see APA support Origin Energy’s needs in the southern markets. The contract is set to commence on 1 January 2023, before the completion of the East Coast Grid pipeline network expansion.

APA highlighted that under this agreement, Origin could potentially supply over half of New South Wales’ winter demand for gas.

The agreement will run for an initial 3-year period with an option to extend by a further two years. It is assumed that the initial deal will generate roughly $190 million in revenue for APA.

About the APA share price

The APA share price has fallen 10% since this time last year, however, year-to-date performance is marginally higher at 3%.

APA has a market capitalisation of about $11.8 billion, with more than 1.18 billion shares on issue.

More reading

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• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of APA Group. 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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Podium Minerals Ltd (ASX: POD) released high grade and value assay results from its Parks Reef Project today, sending the company’s share price soaring. Earlier today, the Podium Minerals share price rocketed 27% to an all-time high of 54 cents.

Unfortunately for shareholders, with only minutes of trade remaining, Podium shares have retreated to 45 cents, which is still a 5.88% gain for the day.

Let’s take a closer look at the mining company’s latest assay results.

Park Reef assay results

The assay results announced today from Podium Minerals’ Parks Reef Project follow on from the site’s previous positive results.

The company has conducted further testing, using a more expensive assay technique to find rhodium and iridium. 

Podium Minerals’ extra testing paid off, revealing up to 1.35 grams per tonne of high-grade rhodium and up to 0.7 grams per tonne of iridium.

Previously, Podium Minerals had found platinum, palladium and gold at the project using conventional assay techniques.

The company’s inferred mineral resources for Parks Reef contains 1,390,000 ounces of combined platinum, palladium and gold plus base metal credits with 53,900 tonnes of copper. The new rhodium results aren’t included in the project’s mineral resources due to limited testing having been completed.

According to the company’s release, rhodium is known to be the best catalyst for the treatment of gasoline nitrogen oxides emissions. Podium also said iridium has an extremely high melting point and is the most corrosion-resistant metal known. It’s often used as a hardening agent together with other platinum-grade metals.

Commentary from management

Podium Minerals executive chair Clayton Dodd commented on the findings, saying:

We are delighted with these initial results for Rhodium and Iridium and when combined with the results from the Platinum, Palladium and Gold assays from the same drill holes, unquestionably they represent the most significant results to date from Parks Reef.

With current rhodium prices some 20 times and iridium five times that of the current platinum price, it doesn’t take a lot of grade of either to have a significant impact on the estimated weighted average price per Podium [platinum grade minerals] ounce.

Podium Minerals share price snapshot

The Podium Minerals share price is having a party on the ASX lately, with today’s news just its latest boost.

Currently, the Podium Minerals share price is up 309% year to date. It’s also up a whopping 2,150% over the last 12 months.

The company has a market capitalisation of around $119 million, with approximately 280 million shares outstanding.

More reading

• Top broker tips Super Retail (ASX:SUL) share price to smash the market
• Afterpay (ASX:APT) share price tumbles despite investor presentation
• Carnaby (ASX:CNB) share price strikes gold and shoots 14% higher
• Tesla boss: ASX lithium shares set to boom
• Why ASX miners are cheering record high shipping costs

Motley Fool contributor Brooke Cooper 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 Super Retail Group Ltd (ASX: SUL) share price is pushing higher on Wednesday.

In afternoon trade, the retail conglomerate’s shares are up 1.5% to $11.90.

Today’s gain means the Super Retail share price is now up 94% since this time last year.

Is the Super Retail share price still good value?

The good news is that if you missed out on the incredible gains made by the Super Retail share price over the last 12 months, it still may not be too late to invest.

According to a note out of Goldman Sachs this morning, its analysts have responded to Super Retail’s trading update by retaining their buy rating and $15.00 price target on its shares.

Based on the current Super Retail share price, this implies potential upside of 26% over the next 12 months excluding dividends.

If you include the 84 cents per share fully franked dividend that Goldman expects Super Retail to pay in FY 2021, this potential return stretches to over 33%.

What did Goldman Sachs say?

Goldman was pleased with Super Retail’s trading update and believes it is well-placed to deliver a strong full year result.

It commented: “Super Retail provided a trading update reflecting further strong momentum in sales growth across all divisions. Group LFL sales were +28% for the 44 weeks YTD, implying +37% for the latest 11 weeks, an acceleration vs. 30.5% in the 1st 7 weeks of 2H21.”

“While pcp trading was weak in April (-26.2%), we estimate 2yr CAGR growth of c. 11.6% for the 11 weeks implying momentum has remained strong vs. our expectations even when adjusted for the volatility in the base. Our revised sales forecasts reflect a 2 year CAGR growth of c. 11.7% for the remainder of 2H21.”

Goldman also notes that management spoke positively about margins and its inventory position.

Overall, this supports the broker’s view that Super Retail’s brands are going to continue to benefit whilst international borders remain shut.

It said: “The ongoing momentum in trading for SUL reinforces our view that the group’s brands are likely to see prolonged elevated trading due to its exposure to categories benefiting from heightened domestic tourism.”

“Overall, we revise group EBIT forecasts by +4.1% in FY21 but less materially over FY22/FY23 (+0.1%). Our 12m Target Price on SUL remains unchanged at A$15, offering a total potential return of c. +35.2%. We maintain our Buy rating on SUL,” Goldman concluded.

More reading

• ASX 200 rises, Flight Centre drops, Super Retail grows
• ASX 200 up 0.2%: SEEK hits record high, Flight Centre tumbles
• Super Retail (ASX:SUL) share price surges 5% higher on strong sales update
• 2 top ASX dividend shares for income investors
• Should you always reinvest your ASX dividends with a DRIP?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail 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 Afterpay Ltd (ASX: APT) share price is out of form on Wednesday and sinking lower.

At the time of writing, the payments company’s shares are down 3.5% to $106.91.

This latest decline means the Afterpay share price is now down 33% from its 52-week high.

Why is the Afterpay share price sinking today?

Investors have been selling Afterpay’s shares due to weakness in the tech sector on Wednesday. This has been driven by a very poor night of trade on the tech-focused Nasdaq index overnight.

According to CNBC, there are a number of potential reasons for the weakness in tech stocks. This includes fears about rising inflation, concerns the US Federal Reserve may have to taper monetary stimulus earlier than anticipated, and speculation that corporate tax rates will increase.

Whatever the reason, the concerns have spread to the Australian share market and have sent the S&P/ASX All Technology Index (ASX: XTX) down 1.5% this afternoon. This compares to a 0.5% gain by the S&P/ASX 200 Index (ASX: XJO).

Afterpay presentation

Not even the release of a presentation ahead of its appearance at the Macquarie Group Ltd (ASX: MQG) conference has been able to support the Afterpay share price.

While the presentation didn’t include any new sales data, it did highlight a number of positives.

One of those was its strong performance during the third quarter. For the three months ended 31 March, Afterpay reported a 104% increase in underlying sales to $5.2 billion. This was driven by increases of 211% and 277% in the United States and United Kingdom, respectively.

At the end of the period there were 14.6 million active customers globally, which was up 75% since the same time last year.

What else?

Afterpay also highlighted the quality of its customer base and the benefits of its platform for consumers.

Management notes that contrary to popular opinion, Afterpay customers in Australia have lower personal liabilities than non-Afterpay customers.

It explained: “This is not the result of demographic differences. A like-for-like comparison with a matched group (i.e. similar age, gender and income as Afterpay customers) shows that Afterpay customers have lower personal liabilities than similar people who do not use Afterpay. Afterpay customers also save more and have higher incomes.”

As for the benefits that consumers get from using Afterpay, chief among them is credit card fee savings. The company estimates that Afterpay saves customers the equivalent of $110 million in credit card fees each year.

Unfortunately, though, despite how positive the presentation was, it hasn’t been enough to prop up the Afterpay share price today.

More reading

• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower
• ASX 200 tech shares under pressure after Nasdaq selloff
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• Pssst, I’m a value investor who makes money from growth shares: fundie
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Carnaby Resources Ltd (ASX: CNB) share price is shooting higher today after the company provided an update on its Strelley gold project. 

Carnaby shares lifted by as much as 14% to 36.5 cents per share before dropping back slightly. At the time of writing, the Carnaby share price is sitting at 35 cents, up 9.38% on yesterday’s close.

Carnaby is an Australia-based mineral exploration company, engaged in acquiring, exploring, and developing gold and other mineral deposits. 

Carnaby’s high-grade gold finding

Carnaby’s market update today reported that intrusive-hosted gold mineralisation was intersected for the first time at its Strelley gold project, highlighting the potential for “Hemi style” gold mineralisation within Carnaby’s large 442 square kilometre tenure.

Hemi refers to a highly lucrative gold mine operated by De Grey Mining (ASX: DEG) in the region.

The Strelley project is 100% owned by Carnaby and located in the Pilbara region of Western Australia.

The company also noted that its recently discovered intrusion within the Bastion Prospect remains “completely open and untested” to the north for two kilometres. 

One of the company’s drill holes, the Bastion Prospect diamond drill hole, intersected a “broad mineralised intrusion”. The company report the following assays: 19 metres at 0.3 g/t gold from 136 metres deep, including six metres at 0.6 g/t gold from 149 metres and 0.6 metres at 3.2 g/t gold from 153.4 metres deep.

Carnaby management comments

Carnaby’s managing director Rob Watkins commented on the results:

Hitting potentially “Hemi Style” intrusion hosted gold mineralisation at the Bastion Prospect in the first ever diamond drill holes drilled at Strelley is highly significant and has materially increased the potential of the entire region. We look forward to receiving additional results over the coming weeks and following up with a concerted RC [reverse circulation] drilling program soon.

Carnaby share price snapshot

The Carnaby share price has now risen 45% the past month and 400% over the past 12 months, but has lost more than 7% on two separate days over the past week.

More reading

• Great Boulder (ASX:GBR) share price surges 80%. Here’s why
• Why De Grey, Infomedia, Northern Star, & SEEK shares are storming higher
• ASX 200 up 0.2%: SEEK hits record high, Flight Centre tumbles
• De Grey (ASX:DEG) share price rockets 11% on latest update
• ASX 200 up 0.5%: Coles Q3 update, Westpac settles class action, JB Hi-Fi loses its CEO

Motley Fool contributor Lucas Radbourne-Pugh 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 ASX lithium sector has long been an area of interest from ASX investors. Since the days of the 2017 lithium bubble, interest in the sector has been on the rise again. This can be seen in the share prices of some of the ASX’s largest lithium plays. Take Pilbara Minerals Ltd (ASX: PLS), whose shares are up more than 500% over the past 12 months. Galaxy Resources Limited (ASX: GXY) has enjoyed gains of around 450% over the same period. Orocobre Limited (ASX: ORE) shares, 230%.

Much of this share price buying pressure has arguably come from the assumption that there is a coming surge in demand for lithium. A surge driven by the adoption of electric cars, vehicles and batteries. Including those from Tesla Inc (NASDAQ: TSLA).

Lithium is a key ingredient in the lithium-ion battery – the most popular design for rechargeable batteries across the board. As such, many investors are hoping that the mass adoption of electric vehicles across the globe will result in a supply squeeze for lithium.

An electric future for ASX lithium shares?

Well, those hopeful investors might be encouraged today. According to a report in the Australian Financial Review (AFR), the head of Tesla’s energy business in the Asia-Pacific, Mark Twidell, says Australia is in a “prime position” to harvest much of the gains in the lithium sector that he sees coming.

Mr Twidell headed the team that was responsible for South Australia’s ‘big battery’ development that was completed by Tesla in 2018. It now forms a core part of the state’s electricity grid. He was speaking at a Southstart conference for entrepreneurs in Adelaide. Twidell reportedly told the conference that demand for lithium is indeed rising as electric vehicles and large-storage batteries usage ramps up. Predicting that the lithium-ion battery value chain is forecast to be $400 billion by 2030, Mr Twidell reckons Australia’s substantial lithium deposits bode well for us.

“It’s silly to fight to say the transition isn’t happening. It’s happening quickly… Let’s actually increase the benefits to Australia” he was quoted as stating. “It’s the economics at the end of the day which transitions us to where we are going… The environmental benefits make sense, but economics will see us through”.

The report concludes by quoting broker UBS. UBS predicts electric vehicle sales will be around 20% of the total vehicle sales by 2025. That’s up from 4% in 2020.

No doubt many ASX lithium investors will be in furious agreement with Mr Twiwell today.

More reading

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• Here are the US shares that ASX investors were buying last week
• Why the Galaxy (ASX:GXY) share price rocketed 55% higher in April
• ASX 200 Weekly Wrap: Shares have average week but a great month
• Why ASX lithium shares like Orocobre (ASX:ORE) soared in April

Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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 isn’t normally a record that miners would be happy with, but the surge in shipping costs have given ASX mining shares a major advantage.

The cost to hire a capesize bulk carrier hit an all time high as it went over US$40,000 a day, reported the Australian Financial Review.

The report quoted the Platts Cape T4 index. This index measures the hire cost for carriers that are typically used to ship iron ore from Australia to China.

ASX miners getting squeezed by record shipping costs

Depending on how contracts are structured, the increase hire costs could squeeze profit margins for ASX miners. These include the BHP Group Ltd (ASX: BHP) share price, Rio Tinto Limited (ASX: RIO) share price and Fortescue Metals Group Limited (ASX: FMG) share price.

ASX coal miners, like the Whitehaven Coal Ltd (ASX: WHC) share price, could also be feeling some heat.

When bad news is really good news

But everything is relative. The big increase in shipping costs is giving our iron ore producers an advantage over their Brazilian rivals.

This is because it takes around 10 to 15 days for ASX iron ore producers to ship the commodity to China over a distance of around 4,000 nautical miles.

The distance between Brazilian and Chinese ports are more than three times further!

Turning of the tides

Strong iron ore demand, especially from China, is driving up shipping costs. What’s more, experts say there is no sign that demand is waning.

The Platts Cape T4 index hit US$40,994 a day on Tuesday. It was at $US5711 a day on February 11, according to the AFR.

The index was launched in October 2019. The previous peak it hit was US$30,000 a day back in October 2020.

What’s driving record shipping hire costs

It isn’t only robust demand for iron ore that’s putting upward pressure on shipping costs. Other commodities from coal to grain are also providing a tailwind for ship owners.

Then there is also the restoration of supply chains from the COVID-19 outbreak that’s also adding to demand for bulk carriers.

Temporary advantage to ASX miners

But the high prices for both shipping and iron ore may not last. The AFR reported that Liberum Capital believes inventory levels for iron ore appear to have normalised and ore prices could fall this coming month.

This is partly because Chinese export rebates of 13% for some steel products expire from May. Demand for our iron ore may be peaking, although the outlook for most commodities remain strong.

More reading

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Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Fortescue Metals Group Limited and Rio Tinto Ltd. Connect with me on Twitter @brenlau.

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 Alcidion Group Ltd (ASX: ALC) share price has continued its negative run this week and is again backtracking today. This comes despite the company announcing the completion of its Share Purchase Plan (SSP).

In mid-afternoon trade, the healthcare technology company’s shares are down 1.35% to 37 cents.

Why is the Alcidion share price on a downhill trend?

A possible catalyst for the fall of Alcidion shares is that investors are bracing for an impending share dilution.

According to Alcidion’s release, the company advised it has successfully completed its SSP following ‘very strong support’ from shareholders. Over 1,900 applications were received, totalling roughly $30 million. This represents a huge level of investment when compared to the company’s target of $2.5 million.

As a result, the board has decided to increase its SPP offer size to $3 million and scale back applications.

With the revised amount, roughly 9.37 million ordinary shares will be issued at a price of 32 cents apiece.

Most applicants will be allotted the minimum basic entitlement of 3,125 SPP shares (worth $1,000). Any remaining SSP shares will be issued on a pro-rata basis on the size of the applicant’s shareholding at the record date.

Investors who sold their parcel of shares between the record date and SSP closing date or held less than 1,471 shares will not receive any shares.

Alcidion expects the new shares to be issued and available for trading from next Tuesday.

The capital raising follows the successful institutional placement that was announced on 15 April 2021.

Together, the combined funds for both the placement and SSP will give Alcidion a cash injection of $18.4 million.

Comments from the CEO

Alcidion CEO, Kate Quirke commented on the result of the SSP:

The Company would like to thank all shareholders who participated in the Share Purchase Plan and the Placement for their continued support. We acknowledge that shareholders who subscribed may be disappointed by the scale back. Ultimately, balancing the strong SPP participation with the foreseeable capital needs of the business is in the best interests of all shareholders.

Alcidion share price review

Although Alcidion shares might be modestly lower today, for this week alone, shareholders have recorded a loss of almost 10%. However, when looking at the bigger picture, in year-to-date performance, the Alcidion share price has doubled.

The company has a market capitalisation of approximately $384 million, with more than 1 billion shares on issue.

More reading

• Alcidion (ASX:ALC) share price slumps despite ‘strong growth’
• Why the Alcidion (ASX:ALC) share price is up 32% this month
• Why the Alcidion (ASX:ALC) share price just hit an all-time high
• Alcidion (ASX:ALC) shares are in a trading halt. Here’s why.
• 4 exciting small cap ASX shares to watch

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group 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 Emyria Ltd (ASX: EMD) are falling today after the company shared news of a psychedelic therapy program targeting post traumatic stress disorder (PTSD). At its intraday low, the Emyria share price has fallen by 5%.

At the time of writing, it has slightly recovered. Currently, the Emyria share price is down 3.85% – trading for 25 cents.

Let’s take a closer look at the drug development and clinical services company’s news.

Emyria’s MDMA-assisted therapy trial

Emyria – formerly known as Emerald Clinics Limited – is set to sponsor a clinical trial targeting treatment resistant PTSD with MDMA-assisted therapy.

The trial has been developed in partnership with Mind Medicine Australia, a charity working to help end suffering caused by mental illness by creating more treatment options

The trial, which is still pending ethics approval, will evaluate the safety, efficacy and cost benefits of MDMA-assisted psychotherapy.

While the company didn’t clarify how its trial will differ from others, it stated that most MDMA-assisted therapy involved 3 stages.

• Preparation – in this stage the therapist and patient get to know one another and build trust
• Administration and monitoring – the patient is given a dose of MDMA and supported by two therapists during a session which can last 6 to 8 hours
• Integration – the next day, and at an average of 3 weekly intervals, the patient and therapist discuss the experience and its outcomes.

A cohort of therapists trained for the trial will graduate this month from Mind Medicine Australia’s training course. Emyria has a facility ready for the trial.

Currently, the two bodies are working to create an ethics protocol to receive ethics approval.

Prior research on MDMA-assisted therapy

According to Emyria’s release, between 5% and 10% of Australians are likely to develop PTSD during their lifetimes. The rate of Australian veterans who will experience PTSD is estimated to be closer to 20%.

The former chair of the Australian Defence Force Admiral Chris Barrie recently encouraged the Australian Government to consider the clinical use of specific psychedelics to help those recovering from trauma.

Emyria stated there is a body of evidence showing that in a controlled environment and supported by psychotherapy, ketamine, psilocybin, and MDMA can help with treatment-resistant mental illnesses.

It pointed to a study by the Multidisciplinary Association for Psychedelic Studies that found that 67% of those who received MDMA-assisted therapy for PTSD didn’t qualify for a PTSD diagnosis after three treatments.

Further, MDMA-assisted therapy for PTSD has been granted ‘Breakthrough Therapy’ status by the US Food and Drug Administration.

Commentary from management

Emyria’s managing director Dr. Michael Winlo commented on the company’s involvement in the trial:

At Emyria, our strength is in providing safe access to unregistered treatments while also generating clinical evidence. To date, we have cared for over 4,000 patients with major unmet needs (including more than 80 patients suffering with treatment resistant PTSD) and collected high-quality Real-World Evidence. Emyria’s clinical advisory, site network and data infrastructure is uniquely positioned to support safe and scalable psychedelic-assisted therapy, much like we have demonstrated and accomplished with cannabinoid medicines.

Emyria share price snapshot

The drop experienced by the Emyria share price as a result of today’s news is unlikely to bother most investors. That’s because it’s a tiny bit of turbulence when compared to the its recent take off.

Despite today’s fall, the Emyria share price is up 150% year to date. It’s also up 257% over the last 12 months.

The company has a market capitalisation of around $40 million, with approximately 254 million shares outstanding.

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Motley Fool contributor Brooke Cooper 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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