The Imugene Limited (ASX: IMU) share price is shooting higher on Monday morning.

At the time of writing, Imugene shares are up 4.54% to 23 cents.

What’s driving Imugene shares higher?

Investors are bidding up the Imugene share price after the company advised it received a DIR licence for its novel cancer-killing virus, CF33-hNIS (Vaxinia).

Granted by the Australian Government’s Office of the Gene Technology Regulator (OGTR), the licence allows Imugene to expand its Vaxinia phase 1 clinical trial within Australia.

A DIR is a dealing involving the intentional release of genetically modified organisms (GMOs). The regulator sets out the conditions under which such dealings must be undertaken when a DIR licence is approved.

In May 2022, Imugene’s Vaxinia trial commenced across the US, delivering a low dose of CF33-hNIS to patients with metastatic or advanced solid tumours and who had at least two prior lines of standard of care treatment.

The oncolytic virus, developed by City of Hope, has shown to shrink solid tumours in preclinical laboratory and animal trials.

These tumours include colon, lung, breast, ovarian and pancreatic cancers.

City of Hope is one of the largest cancer research and treatment organizations in the United States.

The study aims to recruit 100 patients across approximately 10 sites in the United States and Australia.

The trial is anticipated to run for approximately 24 months and will be funded from Imugene’s existing cash reserves.

Commenting on being granted the licence, Imugene managing director and CEO, Leslie Chong said:

We’re pleased to see this regulatory hurdle cleared on schedule which will allow the smooth progression of our VAXINIA Phase 1 trial as planned.

Imugene share price summary

Despite today’s gain, it has been a disappointing 12 months for Imugene investors, with the company’s share price falling more than 50%.

Imugene presides a market capitalisation of approximately $1.29 billion.

The post Imugene share price leaps 5% on trial news appeared first on The Motley Fool Australia.

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More reading

• Why did the Imugene share price have such a lousy end to the week?
• Imugene share price sinks on $80 million cap raise
• Why is the Imugene share price on ice today?
• Imugene share price leaps 5% on trial news
• What’s going on with the Imugene share price on Thursday?

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.

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The Rio Tinto Limited (ASX: RIO) share price has taken a plunge over the past few months, losing almost 19% since 1 June.

Rio shares started June at $114.91 apiece and are currently trading for $93.24 a share.

Meantime, the S&P/ASX 200 Materials Index (ASX: XMJ) has also taken a hit over the same timeframe, losing around 13%.

But there are some perspectives and new developments to consider that may put this performance in a new light. Let’s take a look.

What’s happening in China?

There is a glimmer of optimism that China’s property crisis woes could be beginning to ease, as reported by my Fool colleague Monica.

It’s been reported China is stepping up its support for its housing industry and easing some restrictions in its ongoing zero-COVID policies.

In a research note on Friday, ANZ head of Australian economics David Plank said easing curfews in the city of Chengdu have aided the demand outlook for iron ore.

On the same day, Morgan Stanley also sharpened its outlook for aluminium. The broker lifted its forecast for the aluminium price by 17% to US$2,525 per tonne.

This followed speculation of widespread cuts to aluminium production in China due to the nation’s soaring energy costs.

The importance of the Chinese market?

However, one analyst says that Australia’s — and Rio Tinto’s — dependence on China could be an artefact of our biases and memories rather than fact.

Fisher Investments founder Ken Fisher notes that Australia’s exports to China are down 11.3% year over year despite Australia’s net exports growing 30.3%.

He largely attributes this to the growth in Australian exports to developed and emerging economies such as South Korea and India, as reported by The Australian.

Fisher also provided further analysis on Australia’s perceived over-reliance on China.

What did Fisher say?

Fisher noted that China’s explosive growth over the past decades may have reached a point of diminishing returns, with towns and cities now more interconnected than at any time before.

He argued that laying down the provisional infrastructure allowed the Chinese economy to boom by unifying conduits of its industry. However, now that phase of meteoric growth is over, he expects it to taper off to levels seen by more developed economies.

China’s gross domestic product (GDP) is expected to grow by 3.9% in 2022 — a far cry from its peak of 14.2% in 2007.

Fisher noted that ongoing China slowdown fears could be overblown, stating “Australia isn’t a one-trick export pony dependent on Chinese commodity binge”.

He said part of why people assume China is central to the health of the Australian economy and exporters is that during the Global Financial Crisis, China was still developing rapidly and its demand for raw materials is what kept Australia’s head above water while other economies floundered.

But, Fisher said, times have changed and there has been a long-term correlation between China’s GDP falling and the S&P/ASX 200 Index (ASX: XJO) rising:

History shows slowing Chinese growth itself doesn’t doom the ASX. After China’s GDP growth peaked at 14.2 per cent in 2007, it slowed in 10 of the next 12 years before the ensuing Covid-19 skew. The ASX 200 rose in nine of those 12 years, climbing 150.5 per cent – topping world stocks’ 132.8 per cent.

Driving the point home, Fisher concluded:

Inflated China fears have stalked Australian stocks for years. But remember: False fears are bullish, always and everywhere. So is depressed sentiment. Don’t let today’s gloomy headlines scare you from the coming recovery.

Rio Tinto share price snapshot

The Rio Tinto share price is down 6.9% year to date and 5.7% over the last 12 months.

This compares with the ASX 200’s near 10% drop in 2022 so far and 9% loss in the past year.

Rio’s current market capitalisation is roughly $34.6 billion.

The post Down 19% since June, where to next for the Rio Tinto share price? appeared first on The Motley Fool Australia.

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• Could the latest news out of China bode well for ASX 200 iron ore shares?
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• Morgan Stanley just boosted its outlook for aluminium. Here’s which ASX shares have exposure
• How big will the Rio Tinto dividend be in 2023?
• ASX 200 mining shares stage significant rebound in afternoon trading

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.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Many investors may feel they have missed the boat with Tesla (NASDAQ: TSLA). While the stock has been up over 1,800% in the last three years, it has dropped more than 25% since early January. That shouldn’t be too much of a surprise, however, with the stock valued for much success coming into this year. 

But investments should be made looking forward, not back. Tesla, and the EV sector in general, is entering a new phase, and the company is positioning itself to continue to lead the way forward. While returns over the coming years may not match prior results, Tesla has a lot of irons in the fire. It’s worth looking closely at whether now is a good time to invest. 

Expanding product lineup

The second quarter was a challenging one for Tesla. Global supply chain snarls and rising raw material costs particularly impacted its two new factories that are in the midst of ramping up in Texas and Germany. Production at its Shanghai factory, as well as consumer demand, was hindered by lockdowns as China continued to implement its zero-COVID policy. 

But with all those headwinds, Tesla still grew second-quarter sales by 42% year over year and generated $621 million in free cash flow. That’s not bad for what constituted a tough quarter. And the company is making headway in growing its product portfolio. CEO Elon Musk said the Tesla Semi truck would begin deliveries as soon as this year, and the Cybertruck pickup model should still be on track to launch next year, too. Beyond that, a lower-priced EV is expected to be added to its product portfolio as it reduces costs. 

Tesla’s energy segment is also ramping up production. Its gigafactories haven’t just increased battery production to support Tesla’s vehicle manufacturing growth. The company has been increasing production of battery storage and solar systems that it sells separately to customers. The below chart shows the comparable growth in the first six-month periods of the years since 2019. In its second-quarter report, the company said it continues to ramp up Megapack storage production as customer interest “remains strong and well above our production rate.”

Roadway ahead

One crucial negative for investors has always been the company’s valuation. If, as analysts believe on average, one assumes earnings in the back half of 2022 are 50% higher than the first half, Tesla stock is trading at a price-to-earnings (P/E) ratio of about 75 based on this year’s earnings. 

But the company is working to bring costs down. In a recent investor conference, Tesla head of investor relations Martin Viecha said Tesla’s cost per vehicle was $84,000 in 2017 and has dropped to $36,000 per vehicle more recently. Continuing that trend will allow Tesla to get into the lower-priced EV market that should help create mass penetration for the EV sector. 

The company recently filed documents saying it is evaluating the potential to build a lithium hydroxide refining facility on the gulf coast of Texas. That would be another way to streamline its supply chain and control costs. The company said commercial operations could begin by the fourth quarter of 2024 if the project moves forward. 

That could also help Tesla benefit from incentives included in the Inflation Reduction Act. The new law already gave Tesla a boost, as it resumes some tax credits that had expired for consumers buying new EVs. Tesla was well past the previous limitation that ended those credits after a manufacturer sold more than 200,000 vehicles. Lower-priced vehicle models and more of its supply chain based in the U.S. will also help it meet eligibility requirements. 

The future certainly looks bright for Tesla. While a P/E above 70 is an extremely high valuation, if the company continues to grow at or near 50% for several more years, that won’t seem so rich. For investors looking years or decades down the road, buying Tesla right now could make good sense. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should you invest in Tesla shares right now? appeared first on The Motley Fool Australia.

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• Tesla is exploring building a lithium refining plant in Texas
• Why Tesla thumped the market today
• Why Tesla shares popped today
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• Better buy: Tesla stock or a Nasdaq index fund?

Howard Smith 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 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 Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Link Administration Holdings Ltd (ASX: LNK) share price has taken a tumble on Monday.

In morning trade, the administration services company’s shares are down 4% to $3.32.

Why is the Link share price falling?

Investors have been selling down the Link share price this morning after the company revealed that its takeover by Dye & Durham is close to hitting the rocks.

Last week, Link advised that the UK Financial Conduct Authority (FCA) would only approve the acquisition if Dye & Durham commits funds to meet any shortfall in the amount available to cover the redress payments for the now-collapsed Woodford Equity Income Fund that Link Fund Solutions Limited (LFSL) managed.

The FCA’s view was that the redress payment in relation to the Woodford matters may be for an amount up to 306 million pounds (approximately A$519 million).

What’s the latest?

According to today’s release, Dye & Durham has come to the view that it cannot accept the FCA conditions.

However, Link has received a revised proposal from Dye & Durham which is structured as an upfront cash payment of $3.81 per Link share plus a contingent payment.

The latter includes an additional $1.00 per share if within 24 months the FCA decides that LFSL is not liable for restitution or redress payments.

Shareholders would also receive an amount if the FCA decides LFSL is liable and the redress amount is less than 306 million pounds. In this scenario, shareholders would receive 306 million pounds less the redress amount and then divided by its total shares outstanding at the transaction completion.

Finally, shareholders would still be entitled to receive net consideration of up to $0.13 per Link share from the sale of the Banking and Credit Management (BCM) business if it is sold and proceeds are received up to 12 months after the implementation of the scheme.

Offer rejected

Given the uncertainty of this revised offer, the Link board revealed that it is unable to recommend the new proposal.

So, unless Dye & Durham comes back with a better offer, it looks likely that this takeover won’t be happening.

But that won’t necessarily be the end of the story. Management advised that if the scheme does not proceed, it intends to evaluate alternatives for the business. This includes an in specie distribution of a minimum of 80% of Link’s shareholding in PEXA Group Ltd (ASX: PXA), in order to maximise value for shareholders.

The post Link share price down 4% with takeover close to hitting the rocks 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 positions in and has recommended Link Administration Holdings Ltd. 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.

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The Block Inc (ASX: SQ2) share price is taking a tumble in morning trade, down 3.8%.

Block shares closed on Friday trading for $101 and are currently trading for $97.13.

The ASX buy now, pay later (BNPL) share is slipping despite a moderately positive start from the broader market, which sees the S&P/ASX 200 Index (ASX: XJO) up 0.1%.

So, what’s pressuring the Block share price?

What are ASX BNPL share investors considering?

The Block share price is again finding itself under pressure on Monday amid speculations of an outsized interest rate hike from the US Federal Reserve this Wednesday.

The August inflation figures in the United States came in 0.1% higher than the numbers in July. While that may not sound like much, analysts had broadly forecast that inflation in the world’s top economy would show signs of slowing.

But it isn’t.

That has upped the odds that the Fed will continue with a series of aggressive interest rate hikes. A growing number of analysts forecast the world’s most influential central bank may even raise the benchmark interest rate by a full 1% later this week.

These concerns saw the dual-listed Block shares slide 6.2% on the NYSE on Friday (overnight Aussie time) and are driving the fall in the Block share price on the ASX today.

The higher inflation and interest rate environment hasn’t been kind to BNPL stocks in 2022. Among other tailwinds, analysts fear that higher rates will see more of their customers struggle to make their interest free instalment repayments, increasing the companies’ already rather alarming levels of bad debts.

Block share price snapshot

Block shares began trading on the ASX on 20 January, after the company completed its acquisition of Afterpay.

Since listing, the Block share price has fallen a painful 45%. That compares to an 8% drop in the ASX 200 over that same period.

The post Why is the Block share price slumping 4% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX lithium shares continue the charge higher in 2022 as the price of the battery metal extends its upward trajectory.

Prices for lithium carbonate are now rallying back to all-time highs of AU$105,860 per tonne. It’s no wonder we see a corresponding uptick in the level of lithium exploration and production.

Australian lithium players are front and centre considering their advanced stages of production and the large availability of lithium resource on our shores.

Recent lithium price history

For energy in particular, 2022 has been the year of commodities. However, the market observed most of the upside in the price of lithium carbonate across the previous 12 months.

After declining rapidly from 2018 to late 2021, the price of lithium carbonate thrust to record highs from August last year.

This saw prices reach record highs of AU$105,860 per tonne back in March. Levels that have now been achieved once more in the most recent of rallies.

Chief to the upside has been demand-supply mechanics. Surging demand from the electric vehicle (EV) sector has resulted in a huge upswing in exploration, production and delivery of the battery metal in its various forms.

Geographically, the demand for EVs has stemmed from three major zones, that being Europe, the United States and China.

In fact, by 2025, its projected these three zones will be the largest markets by electric vehicle sales volume.

Estimates are that by 2025, sales will reach an annual 5.7 million EVs in China and 4.05 million in Europe. And another 1.44 million EVs are expected to sell in the US.

Although, most forward estimates are yet to include the US Government’s recent Inflation Reduction Act. The Act offers tax incentives on new EV purchases.

Meanwhile, the China Passenger Car Association lifted its forecasts for EV sales to pass a record 6 million in 2022. This is a doubling of last year’s volume.

Are these trends sustainable?

And if company-specific trends are anything to go by – taking a closer look at the major auto-makers in the US and Europe – each has made the pivot to produce only battery-powered vehicles at some point in the future.

Market participants that engage in the trade, hedging and delivery of various commodities around the world echo this sentiment.

For instance, Albemarle Corporation (NYSE: ALB), the world’s largest public lithium-producing company, noted the reduced investment in internal combustion engines has “created an incredible amount of interest in lithium supply,” The Australian reports.

Swiss commodity Glencore recently advised its intention to add lithium to its basket of traded commodities, Reuters reports.

The move would see another opening for company’s, traders and other market participants to gain exposure to the sector.

Whether the trends are sustainable or not will boil down to the gap between demand and supply narrowing, likely spurred on by greater lithium production.

Despite this, however, visibility is still murky for the price of lithium when looking ahead. And this will feed into the incentive to explore for lithium as well.

As much was observed in the period of 2017 to 2019. Exploration dwindled when the price of lithium fell to record lows, only to spike exponentially from 2020 to date alongside the upswing in lithium pricing.

What about Australian lithium?

The gain has also been tremendously positive for key ASX lithium players like Pilbara Minerals Ltd (ASX: PLS), Mineral Resources Limited (ASX: MIN), and diversified miner IGO Ltd (ASX: IGO), to name a few.

See the returns for all three of these ASX lithium shares over the past 12 months on the chart below.

However, there are two key figures to watch. The price of lithium – in carbonate and spodumene forms – and the price of the finished batteries themselves.

In the meantime, there’s plenty to think about with the planned transition away from fossil fuels into ‘green’ energy sources.

The post ASX lithium mania: Is the ‘incredible amount of interest’ sustainable? appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Top broker values Mineral Resources rumoured lithium spin-off at $17 billion
• Here are the 3 most heavily traded ASX 200 shares on Friday
• ASX lithium shares take a beating on Friday
• Brokers name 3 ASX shares to buy today

Motley Fool contributor Zach Bristow 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.

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The Wall of Worry is a higher barrier for investors to scale this year but there are still plenty of S&P/ASX 100 shares to keep your eye on, according to a top broker.

The figurative wall refers to the market pushing higher despite the growing list of problems. And there are problems aplenty.

Aggressive global interest rate hikes, the sharp slowdown in China’s economy and a looming energy crisis in Europe are only some of the obstacles ASX investors have to climb.

Volatility ahead

The experts at Macquarie are also warning investors to brace for more volatility over the next six months. The broker said:

“We think it is hard to make a bull case for stocks when Industrial (non-resource) PEs are already high, we are in the middle of an earnings downgrade cycle and central banks continue to tighten to slow inflation. Our indicators also suggest the US will be in recession by early 2023.”

But with volatility comes opportunity. Macquarie polled its analysts for their best ASX 100 shares to buy now.

Defensive ASX 100 shares to buy

One standout is the CSL Limited (ASX: CSL) share price. Macquarie likes the global biotech for its multiple growth drivers.

These include recovery in plasma collections, benefits from the Rika platform, earnings from Vifor and contributions from pipeline products.

Another on the buy list is diversified property giant GPT Group (ASX: GPT). Macquarie believes its defensive earnings and gearing puts it in a good position to outperform in this environment.

Speaking of defensive shares, Lottery Corporation Ltd (ASX: TLC) is also on the broker’s most favoured list. Macquarie calls it one of the most defensive discretionary shares due to its long and exclusive lotteries and Keno licenses in Australia.

Best placed industrial shares

Meanwhile, Idp Education Ltd (ASX: IEL) is another top ASX 100 share pick due to its structural growth story. The long-term growth rate of international students stands at 7% to 10% a year and the group enjoys good operating leverage.

The James Hardie Industries plc (ASX: JHX) share price is also a top buy, in Macquarie’s book. While the building materials supplier is under pressure from a slowing property market, the company is more exposed to renovations and remodelling – an area that has greater resilience to economic cycles.

Energy shock puts these ASX 100 shares on the buy list

Finally, there are two ASX 100 shares in the energy sector that made the cut. These are the Origin Energy Ltd (ASX: ORG) share price and Santos Ltd (ASX: STO) share price.

The energy shortage caused by the Russian-Ukraine war will drive up global gas prices and the two are well placed to benefit.

The post These are the top ASX 100 buy ideas from Macquarie appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
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• 2 blue chip ASX 200 shares to boost your portfolio: experts
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Motley Fool contributor Brendon Lau has positions in CSL Ltd. and Santos Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. and Idp Education Pty Ltd. 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.

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The Origin Energy Ltd (ASX: ORG) share price is in the red this morning. Its slip comes after the company announced it is exiting the Beetaloo Basin.

IOrigint also intends to exit all its upstream exploration permits as it leans into the clean energy transition.

The divestment of its Beetaloo Basin interests will bring in $60 million upfront and future royalties. Origin expects to recognise a non-cash post-tax loss of between $70 million and $90 million in relation to the transaction.

The Origin share price is trading at $5.80 at the time of writing, 0.26% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is lifting 0.14% right now. Meanwhile, the S&P/ASX 200 Utilities Index (ASX: XUJ) is down 0.31%.

Let’s take a closer look at the major news from the ASX 200 energy producer and retailer.

Origin announces Beetaloo Basin exit

The Origin share price is lower on news the company’s backing out of its 77.5% interest in three permits in the Northern Territory’s Beetaloo Basin.

The energy giant has entered an agreement with Tamboran Resources Ltd (ASX: TBN) and Tamboran’s major shareholder Bryan Sheffield to divest its interests for $60 million upfront.

It will also receive a 5.5% royalty based on wellhead revenues produced from the permits.

The company has also committed to undertake a strategic revenue of all its remaining exploration permits, excluding its Australia Pacific LNG interest, with a view to exiting all permits over time.

Management commentary

Origin CEO Frank Calabria commented on the company’s latest move, saying:

The decision[s] … will enable greater flexibility to allocate capital towards our strategic priorities to grow cleaner energy and customer solutions and deliver reliable energy through the transition.

Calabria said progressing projects like Beetaloo could be expensive and uncertain, adding:

Ultimately, we believe Origin is better placed prioritising capital towards other opportunities that are aligned to our refreshed strategy.

The suite of agreements executed with Tamboran allow Origin to realise value created by our investment and exploration activities to date and ensures another operator present in the area and committed to developing its resources can continue to take the venture forward.

Origin has also entered a gas sale agreement for up to 36.5 petajoules each year over 10 years, conditional on terms including Tamboran’s final investment decision to develop the project.

Perhaps unsurprisingly then, the company clarified it was not planning to exit the gas business. Calabria said:

Gas will continue to have an important role in our business … and in the broader energy mix as we look to underpin reliable energy supply to customers and accelerate our investment into the energy transition.

Origin share price snapshot

The Origin share price has been outperforming lately.

It has gained 8% since the start of this year. It’s also currently 35% higher than it was this time last year.

For comparison, the ASX 200 has dumped 11% year to date and 10% over the last 12 months.

The post Why is the Origin share price sliding on Monday? appeared first on The Motley Fool Australia.

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More reading

• Are these ASX blue-chip shares losing their defensive benefits?
• Are AGL shares offering a bigger final dividend than Origin this year?
• Could you be holding onto ‘zombie’ ASX shares hoping for new life?
• ‘We would like to see faster progress’: ASX 200 energy shares on notice
• 5 ASX 200 shares turning ex-dividend tomorrow

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.

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The Lake Resources N.L. (ASX: LKE) share price has been a strong performer on Monday morning.

At the time of writing, the lithium developer’s shares are up a massive 19% to $1.11.

Why is the Lake Resources share price racing higher?

Investors have been bidding the Lake Resources share price higher today after the company released another update on its Kachi Lithium Project in Argentina.

This follows an update last week which revealed that its partner, Lilac Solutions, was disputing the date that it is due to achieve key milestones relating to the Kachi Pilot Plant. Lilac believes it has until the end of November, whereas Lake Resources says it is until then end of September.

This is important because Lilac will earn a 25% stake if it achieves these milestones by the agreed date.

Today’s update

This morning Lake Resources attempted to allay concerns that the previous update alluded to problems at the project.

According to the release, Lake has advised that ongoing work is being done by Lilac at the Kachi Project and all parties are confident that on-site operations will be successful.

Construction of the facility to house the Lilac demonstration plant is now complete and dry commissioning of the demonstration plant commenced last Wednesday.

Furthermore, Lilac has advised that, subject to completion of dry commissioning, it expects to begin wet commissioning of the plant on Thursday September 22. Once wet commissioning is complete, Lilac then expects to begin onsite processing of Kachi brines in the first week of October.

Management also notes that while the test program is based on operating the demonstration plant for 1000 hours, it is anticipated that the first 2000 litres of lithium concentrate produced from the demonstration plant will be sent for conversion into lithium carbonate once delivered. Lake proposes that this final lithium product will then be qualified by a tier one battery maker to validate product specifications.

Finally, Lake revealed that offtake discussions continue to advance and new appointments to the Lake board are in final stages of consideration.

The post Why is the Lake Resources share price rocketing 19%? appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• Here are the 3 most heavily traded ASX 200 shares on Friday
• ASX lithium shares take a beating on Friday
• Why is the Lake Resources share price tumbling again?
• Why Lake, Pushpay, South32, and Tyro shares are dropping

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 Scott Phillips.

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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) is still the most share on the ASX after its short interest rebounded to 15%. Short sellers appear to believe the market is too optimistic on the travel market recovery.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease to 13.5%. This betting technology company’s shares have fallen 58% this year but short sellers appear to believe they can keep falling.
• Block Inc (ASX: SQ2) has seen its short interest rise to 10.4%. This could be due to weakness in the tech sector, concerns over the prospects of a US recession, and regulatory pressure in the BNPL industry.
• Lake Resources N.L. (ASX: LKE) has short interest of 9.9%, which is down slightly week on week. Short sellers will have been pleased to see this lithium share tumble last week after it revealed an ownership dispute with its DLE partner Lilac Solutions.
• Zip Co Ltd (ASX: ZIP) has seen its short interest ease slightly to 9.5%. This morning this buy now pay later provider’s shares were kicked out of the ASX 200 index following the quarterly rebalance.
• Megaport Ltd (ASX: MP1) has returned to the top ten after its short interest jumped to 9.1%. This could be due to valuation concerns. Megaport’s shares trade on huge multiples.
• City Chic Collective Ltd (ASX: CCX) has short interest of 8.6%, which is down slightly since last week. This plus sized fashion retailer’s shares have come under significant pressure since the release of a very disappointing full year result which revealed a huge jump in inventory.
• Nanosonics Ltd (ASX: NAN) has short interest of 8.4%, which is down slightly week on week. This infection prevention company’s shares have been targeted due to concerns over sales disruption and margin pressures from a business model change in the key US market.
• De Grey Mining Limited (ASX: DEG) has short interest of 8.2%, which is down slightly week on week. Short sellers continue to hold the gold developer’s shares despite a recent positive update on its Mallina Gold Project.
• Pointsbet Holdings Ltd (ASX: PBH) has short interest of 7.7%, which is down slightly week on week. This appears to have been driven by concerns over this sport betting company’s cash burn.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• Why is the Lake Resources share price rocketing 19%?
• Here’s why the Flight Centre share price isn’t all that it seems
• 5 things to watch on the ASX 200 on Monday
• 2 ASX shares now at a buying opportunity after a shocking 2022: fundie
• Here are the 3 most heavily traded ASX 200 shares on Friday

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 Betmakers Technology Group Ltd, Block, Inc., MEGAPORT FPO, Nanosonics Limited, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, MEGAPORT FPO, and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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