It’s been years since those invested in S&P/ASX 200 Index (ASX: XJO) travel giant Flight Centre Travel Group Ltd (ASX: FLT) shares have received a dividend from the company.

That’s despite its ASX 200 peer Corporate Travel Management Ltd (ASX: CTD) offering investors a 5-cent per share final payout for financial year 2022.

But there’s a good reason Flight Centre isn’t offering payouts just yet. The travel agent hasn’t posted a half year’s profit since 2019 after the pandemic took its toll on the travel industry. Thus, it can’t hand out a portion of its profits in the form of dividends.

And the company’s stock has dived alongside its earnings. The Flight Centre share price is currently $15.01. That’s around 60% lower than it was at the end of 2019.

So, when might investors see a dividend from the ASX 200 travel share? Let’s take a look.

When are Flight Centre shares expected to pay a dividend?

Flight Centre shares might not be on the cusp of paying a long-awaited dividend, but patient investors will likely be rewarded in the coming years.

The company’s leisure and corporate businesses both returned to profitability in the second half of financial year 2022. But that wasn’t enough to stop Flight Centre from posting a full-year loss of $272.6 million.

And while its recovery is said to be outpacing that of the industry, the company isn’t expecting to turn things around in financial year 2023.

Though, it does believe it will be tracking close to its monthly pre-COVID total transaction levels by the end of this fiscal year.

Following the release of the company’s expectations, Goldman Sachs voiced its expectations for Flight Centre’s shares to return to dividends.

The broker predicts the company could offer investors a payout in financial year 2024, as my Fool colleague James reports.

If such tips come true, the stock could end up going five years without paying a dividend following the onset of the pandemic.

The post Could dividends be back on the cards for Flight Centre shares soon? appeared first on The Motley Fool Australia.

More reading

• Flight Centre share price tumbles to new 52-week low on Monday
• These are the 10 most shorted ASX shares
• Could this be good news for Flight Centre shares?
• Here are the 10 most shorted ASX shares
• Here’s why the Flight Centre share price isn’t all that it seems

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 recommended Corporate Travel Management Limited and Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/ZqGbAht

The Northern Star Resources Ltd (ASX: NST) share price is gaining ground over the ASX 200 on Wednesday.

At the time of writing, shares in Australia’s second-largest gold miner are up 0.56% to $7.15.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is in the red by 0.82% to 6,443.2 points.

Let’s take a look at why Northern Star shares are beating the ASX 200 today.

What’s going on with Northern Star shares?

Investors are bidding up the Northern Star share price after falling to a 2-month low of $6.93 yesterday.

Gold prices have tumbled in the past couple of weeks, hitting a low of around US$1,620 per ounce.

This is a big difference to when the yellow metal was trading above US$2,000 in March when Russia invaded Ukraine.

With the US Fed Reserve raising interest rates aggressively to combat inflation, this put pressure on the gold price.

Consequently, investors traditionally rush to US government bonds as they are considered a safe investment class. Currently, the US two-year treasury bond is swapping hands at a 15-year high of 4.23%.

However, with Northern Star shares trading at attractive levels, it appears investors are seizing up the buying opportunity.

In addition, the company commenced its $300 million share buyback on 15 September which is also likely providing support.

While Northern Star shares are remaining stable for now, it is relatively dependent on the US Fed’s next move.

The central bank is next due to meet at the start of November to decide upon if interest rates will rise again.

Of course, this will be based upon the economic data and inflation numbers that flow through from now until then.

Northern Star share price summary

After sinking 7% in a week, the Northern Star share price is down by 24% in 2022.

This means it’s almost 60% off the all-time high of $17.03 achieved on 9 November 2020.

Based on today’s price, Northern Star commands a market capitalisation of approximately $8.28 billion.

The post Here’s why the Northern Star share price is staging a partial rebound appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Monday
• Why is the De Grey share price struggling this week?
• Gold just hit a 2-year low. What could this mean for the Northern Star share price?
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Aaron Teboneras has positions in Northern Star Resources 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 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/b3x82DO

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $43.00 price target on this gaming technology company’s shares. This follows the company’s latest investor roundtable event. Goldman was pleased with what it heard and came away from the event feeling confident that Aristocrat is largely on track to achieve its expectations in the second half. The Aristocrat share price is trading at $32.99 on Wednesday.

BHP Group Ltd (ASX: BHP)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this mining giant’s shares to $44.00. Macquarie has upgraded its earnings estimates through to FY 2026 by approximately 5% per annum to reflect stronger thermal coal prices. This is being driven by supply constraints and global energy security risks. The BHP share price is fetching $37.23 today.

Superloop Ltd (ASX: SLC)

Analysts at Morgans have retained their add rating and $1.00 price target on this telco’s shares. This follows news that Superloop has signed an agreement to acquire VostroNet. Morgans views this as a strategically and financially attractive deal. It highlights that it will bolster the company’s existing student accommodation business, adds multi-dwelling units, and leverages its infrastructure assets. The Superloop share price is trading at 69 cents on Wednesday afternoon.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• ‘Willingness to pay a premium’: ASX coal shares boom again on Wednesday
• Why is the BHP share price outperforming the ASX 200 today?
• Morgans names the best ASX mining shares to buy
• Here’s why experts are tipping these ASX shares as buys for October
• ASX 200 iron ore miners rally as market rebounds on Tuesday

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 positions in and has recommended SUPERLOOP FPO. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/kZHP4w9

The Singapore Telecommunications Limited (SGX: Z74), or Singtel, share price is feeling some shockwaves in the wake of Optus announcing it had been hacked.

Singtel shares dipped 1.12% the day after its subsidiary Optus made the announcement on Thursday last week.

In total, the Singtel share price has dropped 2.24% since then, currently fetching SGD$2.62 at the time of writing.

Let’s cover how Singtel’s share price reacted to developments in the Optus breach story and the key highlights.

The attack

My Fool colleague Bernd notes that hackers stole personal information from 9.8 million Optus customers in the attack. The information divulged included dates of birth, names, and potentially details from identification documents such as passports and driver’s licences.

Some sensitive information was said to be spared in the breach, including payment details and user account passwords.

Since the attack, the hacking group has demanded a $1 million ransom not to publish all of the stolen data. To get Singtel to comply with its demands, it released 10,000 customer records, and the group said it would publish a total of 40,000 more records on Tuesday if the ransom went unpaid.

Amid The Guardian reporting news of the demand yesterday, Singtel shares have dipped 0.76% today.

And a regrettable ransom?

However, my colleague Brooke notes that the group may be regretting its act of blackmail. It’s reported an alleged spokesperson from the group said “[they] don’t care anymore” and that it was a “mistake” to publish the stolen records.

If there’s no more release of Optus stolen data, it may relieve Singtel investors’ fears that the worst of the attack is over.

Singtel acquired Optus in August 2001 and traded on the ASX until 2005. Optus brought in $776 million of cash flow to Singtel over the 12 months ended 31 March 2022.

The post How has the Singtel share price responded to the Optus data breach? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Why Cedar Woods, Core Lithium, Myer, and Telix shares are sinking
• Want to compound your Rio Tinto dividends? Here’s what you need to know
• Why Cogstate, Mayne Pharma, Race Oncology, and Whitehaven Coal are charging higher
• ASX lithium share QX Resources soars 70% on ex-Lake Resources MD appointment

Motley Fool contributor Matthew Farley 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/7bL1scI

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the day deep in the red. At the time of writing, the benchmark index is down 0.75% to 6,447 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Cedar Woods Properties Limited (ASX: CWP)

The Cedar Woods share price is down 8% to $3.96. This has been driven largely by the property company’s shares trading ex-dividend this morning for its latest dividend. Eligible shareholders can now look forward to receiving Cedar Woods’ 14.5 cents per share dividend next month on 28 October.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price has continued its slide and is down a further 6% to $1.12. Investors have been selling this lithium developer’s shares despite the release of a positive business update this week. Not even a bullish note out of Macquarie has been able to stop its shares from falling. Macquarie has an outperform rating and $1.80 price target on its shares.

Myer Holdings Ltd (ASX: MYR)

The Myer share price is down over 2.5% to 56.5 cents. This has also been driven by this department store operator’s shares trading ex-dividend this morning. Eligible Myer shareholders will be paid the company’s fully franked 2.5 cents per share final dividend on 7 November.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price has sunk 19% to $4.38. This morning this biopharmaceutical company revealed that it has withdrawn its marketing authorisation application in Europe for its investigational product Illuccix. This followed a late request for more data from regulators that could not be fulfilled.

The post Why Cedar Woods, Core Lithium, Myer, and Telix shares are sinking appeared first on The Motley Fool Australia.

More reading

• Why is the Core Lithium share price sinking 9% today?
• September living up to its ‘worst month of the year’ reputation as ASX 200 finally cracks
• Telix share price sinks 12% on European blow
• Why Core Lithium, Ramsay, Synlait Milk, and Virgin Money shares are dropping
• Core Lithium share price falls despite business update

Motley Fool contributor James Mickleboro has positions in TELIXPHARM DEF SET. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/oGUtWlT

Rio Tinto Limited (ASX: RIO) shareholders rejoiced last week when the company paid out its latest dividend.

The mining giant distributed a partially franked interim dividend of $3.837 per share to eligible investors.

However late last night, Rio Tinto provided an update to its dividend reinvestment plan (DRP).

Currently, Rio Tinto shares are swapping hands at $90.07, down 0.35%.

For context, the benchmark ASX 200 is also heading south by 0.67% following a broader fall across Wall Street overnight.

Let’s take a look in more detail at exactly how much Rio Tinto is offering shareholders with its DRP.

Rio Tinto updates DRP amount

If you elected into Rio Tinto’s DRP before 1 September, you’ll be receiving some extra shares instead of the cash dividend.

The company determined the DRP price will be around $90.49 per share which is the average price over the last several days.

These shares are expected to be allotted to shareholder portfolios this Friday.

In case you were wondering, there was no DRP discount that was offered.

Opting your dividends to be transferred into shares can pay off in the long run. Particularly, if you are holding a quality blue-chip share like Rio Tinto.

As Albert Einstein once pointed out, “Compound interest is the eighth wonder of the world. He who understands it… earns it. He who doesn’t… pays it.”

Over the last 5 years, Rio Tinto shares have accelerated from around $65 per share to $100 at the end of August. That represents a 50% increase, not including the reinvestment of dividends.

On average, an ASX 200 share grows about 7% annually.

And with the exchange rate fluctuating in favour of the US dollar against the Aussie dollar, you could receive more when Rio Tinto delivers its final dividend.

Rio Tinto share price snapshot

The Rio Tinto share price has fallen 10% in 2022 and is down almost 8% over the past 12 months.

Rio Tinto has a price-to-earnings (P/E) ratio of 5.27 and commands a market capitalisation of roughly $33.55 billion.

The post Want to compound your Rio Tinto dividends? Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• ASX 200 iron ore miners rally as market rebounds on Tuesday
• 5 things to watch on the ASX 200 on Tuesday
• Why is the Rio Tinto share price rolling 5% lower on Monday?
• Why is the Rio Tinto share price sparkling in a sea of red today?
• Own Rio Tinto shares? It’s time to dig into your dividends

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/GUKh0qo

The S&P/ASX 200 Index (ASX: XJO) has resumed its downward trend on Wednesday. In afternoon trade, the benchmark index is down 0.8% to 6,442.4 points.

Four ASX shares that are not letting that hold them back today are listed below. Here’s why they are rising:

CogState Limited (ASX: CGS)

The CogState share price was up 51% to $2.12 before being paused from trade. Investors appear to have been scrambling to buy the neuroscience technology company’s shares after Japanese drugmaker Eisai released phase 3 data on its experimental drug for Alzheimer’s disease. That data showed that the drug has helped slow cognitive decline in patients in the early stages of the illness. Cogstate has an agreement with Eisai.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is up 6% to 27 cents. This morning this pharmaceutical company announced the appointment of its new CEO. Mayne Pharma has appointed Shawn Patrick O’Brien to the top job. The company notes that O’Brien has more than 35 years of global pharmaceutical industry experience building successful enterprises. This includes several senior leadership roles at AstraZeneca.

Race Oncology Ltd (ASX: RAC)

The Race Oncology share price is up almost 5% to $2.01. This follows news that the oncology company has developed a new formulation of Zantrene that enables peripheral (arm or leg vein) intravenous (IV) delivery to patients. Management highlights that this novel and improved formulation provides clinicians with an easier to use alternative to the current central line formulation of Zantrene. It feels the formulation has greater market potential.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is up 4% to $8.79. This morning the team at Macquarie retained its outperform rating and lifted its price target on the coal miner’s shares by 20% to $12.00. Macquarie made the move after upgrading its earnings estimates to reflect stronger than expected thermal coal prices.

The post Why Cogstate, Mayne Pharma, Race Oncology, and Whitehaven Coal are charging higher appeared first on The Motley Fool Australia.

More reading

• Up 200% so far this year, is it too late to buy Whitehaven shares now?
• ‘Willingness to pay a premium’: ASX coal shares boom again on Wednesday
• Why is the CogState share price rocketing 61% higher today?
• September living up to its ‘worst month of the year’ reputation as ASX 200 finally cracks
• Broker names 2 high yield ASX 200 dividend shares to buy

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 positions in and has recommended CogState Limited. The Motley Fool Australia has positions in and has recommended CogState Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/caCtE8o

The share price of tiny ASX lithium hopeful QX Resources Ltd (ASX: QXR) is taking off on news the company has appointed former Lake Resources NL (ASX: LKE) managing director Steve Promnitz.

Promnitz fled the S&P/ASX 200 Index (ASX: XJO) lithium developer in June, seemingly selling his 10.2 million shareholding in the company shortly afterwards.

But Lake Resources’ loss appears to be QX Resources’ gain. The ASX lithium and gold developer’s stock is roaring higher after the company announced its new boss.

The QX Resources share price is soaring 69.7% right now to trade at 5.6 cents.

Let’s take a closer look at the news driving the ASX lithium share higher on Wednesday.

QX Resources share price surges on MD appointment

The QX Resources share price is rocketing higher today. Its gain comes after the company announced Promnitz will take the reins of the growing Western Australia and Queensland-focused mineral developer.

The former Lake Resources boss will take up the newly created managing director role at the lithium and gold hopeful.

On his appointment Promnitz said he was looking forward to his new challenge, adding:

I plan to advance [QX Resources’] current assets and expand the focus on battery minerals by drawing on my extensive networks and skills from the past six years in the battery minerals sector.

QX Resources noted Lake Resources was a $1 million private company when Promnitz stepped into his former role. By the time he departed, the now-ASX 200 company was said to be worth around $2.1 billion.

QX Resources chair Maurice Feilich also commented on the company’s new leader, saying:

QX Resources has assembled a quality portfolio of near drill-ready lithium hard-rock assets in Western Australia with some very promising geology. As well, our gold assets in Queensland hold considerable unlocked value and growth for future development.

QX Resources’ board decided now is the right time to appoint a managing director to fast-track the development of these assets while also assessing new battery minerals projects that complement the portfolio.

We are confident that [Promnitz] can drive QX Resources to the next stage of its growth and development.

The post ASX lithium share QX Resources soars 70% on ex-Lake Resources MD appointment appeared first on The Motley Fool Australia.

More reading

• Are short sellers right about the Lake Resources share price?
• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares
• Why is the Lake Resources share price sinking 7% on Monday?
• Here’s which ASX lithium shares investors have been loading up on this month

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/gf2yEAk

The Zip Co Ltd (ASX: ZIP) share price is down 0.44% today to 68 cents. What a shocker this company has had in 2022. The Zip share price is down 84% in the year to date and down 90% over the past 12 months.

That’s nothing short of a horror story for ASX shares investors. Worse than Poltergeist. Worse than Freddy Kruger. In fact, worse than the two of them put together, with the shower scene from Psycho on top. Am I getting carried away here?

At any rate, Zip shareholders are tired. And clearly, Zip management is also fed up with how things have been going.

As my Fool colleague Mitch has previously reported, Zip is changing course. It’s going from seemingly being all about ballooning company growth to wanting positive cash flow and profitability.

In July, Zip and Sezzle Inc (ASX: SZL) mutually agreed to abandon plans to merge. Zip is also closing its Singapore and United Kingdom businesses, which form part of its non-core ‘rest of world’ market.

This will leave the company clear to focus on its two core markets — Australia and New Zealand (ANZ) and the United States — at least for a while.

Zip has mapped out its strategy to become cash flow positive in its annual report released today.

A simplified strategy is the first step

In its annual report, Zip explains its plans to simplify the business and focus on the best bits:

We have reviewed and refined our priorities with a focus on accelerating our path to profitability and have made progress with our three strategic priorities – sustainable growth, unit economics and cost management.

Our FY23 strategy is to allocate capital and focus effort on areas of our business that demonstrate the right characteristics to accelerate our path to profitability.

Specifically, we have simplified our strategy to focus on core markets ANZ and the US which are either already generating positive cash EBTDA or have a clear and near path to positive cash EBTDA; and products with proven market fit and sustainable unit economics.

So, what’s the plan to positive cash flow?

Zip outlined three key elements in its path to positive cash flow and group profitability. They are growth in the ANZ and US businesses, an improvement in unit economics, and reducing the global cost base.

One way it plans to grow in ANZ and the US is by continuing to recruit new enterprise merchants. Its most recent big player sign-ups include Best Buy Co Inc, Bed Bath & Beyond Inc, Footlocker, Inc, JB Hi-Fi Limited (ASX: JBH), Qantas Airways Limited (ASX: QAN), and Virgin Australia. The company says it now has more than 90,000 merchants. That’s a 77% increase year over year (yoy).

Attracting new customers is another way. In FY22 in ANZ, Zip signed up 400,000 net new customers to grow to 3.2 million in total. In the US, Zip’s customer base grew by 45% yoy to 6.4 million.

For the record, the ANZ business has been cash flow positive for four years and had a record profit in FY22. The US business is not yet there but has “a clear and near-term path to achieving positive cash flow”, according to Zip.

In terms of improving unit economics, Zip is “targeting a reduction in cash cost of sales as a percentage of TTV to 4.0%-4.5% in the medium term with improving credit performance a key driver”.

It also aims to reduce processing costs and offer customers increased payment flexibility. This includes personalised repayment schedules and enhancing the rewards program.

Zip says: “As part of our strategic review, we are also working through and will finalise actions related to our remaining non-core global businesses, reducing group cash burn.”

Zip said its balance sheet is “strong with available cash and liquidity of $278.6 million as of 30 June 2022″.

Furthermore: “With our current plan, we believe this is sufficient capital to see us through to group positive cash flow.”

BNPL still in its infancy as a payments system

Zip says buy now, pay later is only in its infancy worldwide, so the future looks bright:

The COVID-19 pandemic accelerated the rise in the use of digital wallets and the addressable opportunity for BNPL remains significant, with BNPL expected to be the fastest growing ecommerce payment method over the next two years.

As consumers are increasingly seeking products that are fair, transparent and provide seamless customer experiences we expect continued market penetration of BNPL as a payment method.

Across our core markets, ANZ and the US, penetration is less than 2% of the total addressable market with significant opportunity, particularly in the US which is still early stage and expected to more than double by 2025.

The post How does Zip plan to become a cash flow positive ASX company? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Why the ‘outlook presents challenges’ for Zip shares: expert
• Why is the Zip share price sinking 6% today?
• 8 ASX 200 shares got kicked out of the index on Monday. How are they tracking?
• Why Imugene, Link, Newcrest, and Zip shares are dropping

Motley Fool contributor Bronwyn Allen has positions in Qantas Airways Limited and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Best Buy, Block, Inc., and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Foot Locker. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended JB Hi-Fi Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/kEtqiI6

The Critical Resources Ltd (ASX: CRR) share price is higher on Wednesday following the company’s latest drilling results.

At the time of writing, the base metals and lithium exploration company’s shares are up 4.35% to 7.2 cents apiece.

Critical Resources encounters visual spodumene

Investors are bidding up the Critical Resources share price after the company revealed further thick, high-grade intercepts at the Mavis Lake lithium project in Canada.

According to its announcement, Critical Resources advised assay results confirmed exceptionally high-grade lithium oxide.

Management highlighted the drill hole results, which included up to 3.36% of Li2O (lithium oxide) within the main zone of Mavis Lake.

So far, Critical Resources has now drilled around 11,680 metres in its 2022 campaign.

This is expected to reach up to 15,000 meters later this year.

The company is undergoing initial discussions with consultants to perform metallurgical test work as well as resource modelling.

The assay results of two recently drilled holes are expected to be received sometime in the middle of next month.

Critical Resources non-executive director Alex Cheeseman commented:

To follow our last results with another set of such high-grade assays is an excellent outcome for the Company, and further builds our confidence in delineating a JORC compliant resource in the near term.

We believe the last few rounds of assay results have been the some of the highest grades released by an ASX listed lithium company so far in 2022, this sets us up well to continue advancing the project and transition Critical Resources into a potential lithium project developer.

About the Critical Resources share price

Since this time last year, the Critical Resources share price has accelerated by more than 90%.

The company’s shares hit a 52-week high of 14 cents in January, before losing ground in the months after.

Based on today’s price, Critical Resources commands a market capitalisation of approximately $108 million.

The post Critical Resources share price lifts on ‘some of the highest grades released by an ASX listed lithium company’ appeared first on The Motley Fool Australia.

More reading

• Why Computershare, Critical Resources, Judo Capital, and Platinum shares are charging higher
• 3 ASX mining shares leaping more than 20% on battery minerals news

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/9fxO07k