The Lynas Rare Earths Ltd (ASX: LYC) share price has soared in May, but could it go even higher in June?

The rare earth producer’s share price has jumped nearly 10% from $8.96 at market open on 2 May to its closing share price of $9.85 on Tuesday. In contrast, the S&P/ASX 200 Index (ASX: XJO) has dropped 3% over the same time frame.

So what is the outlook for the Lynas share price?

Positive outlook

Lynas is exploring and processing rare earth minerals at the Mt Weld project in Western Australia. The company also has a refining facility in Malaysia.

One analyst has suggested Lynas is the “sweet spot of decarbonisation” and rated the company as a buy in early May. Alphinity Investment Management principal Stephane Andre said:

Lynas is the one I’m proposing, which is a buy for me. It is really at the sweet spot of decarbonisation and geopolitical diversification. So when you think about decarbonisation, rare earth is really critical for wind turbines, electric vehicles and so on.

As my Foolish colleague Bernd reported, Lynas is the only large rare earths producer outside of China.

In the first quarter of 2022, Lynas reported record Neodymium-Praseodymium (NdPr) production of 1,687 tonnes. The company also achieved record sales revenue of $327.2 million.

Another broker that has recently recommended Lynas shares is Canaccord. Amid ASX mining share volatility, its analysts recommend investing in sector leaders with “robust balance sheets” and earnings growth in the near term. The team added:

…particularly those with leverage to attractive long-term supply/demand fundamentals such as Allkem, Lynas Rare Earths, and Oz Minerals.

In early May, Macquarie also placed an outperform rating on the company’s shares with a $12.80 price target. As my Foolish colleague James reported, Macquarie likes Lynas’ boost in production and is optimistic it could experience strong growth in FY 2023.

Share price snapshot

The Lynas share price has surged by more than 78% in the past year but has fallen around 3% in the year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned less than 1% in the past year.

Lynas has a market capitalisation of about $8.9 billion based on today’s share price.

The post What’s the outlook for Lynas share price in June? appeared first on The Motley Fool Australia.

More reading

• Own Lynas shares? So do these big institutional investors
• The Lynas share price has surged 15% in 2 weeks. What’s the deal?
• Here are the top 10 ASX shares today
• Why is the Lynas share price powering ahead today?
• Falling ASX 200 mining shares ‘an opportunity to invest in sector leaders’: broker

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 TechnologyOne Ltd (ASX: TNE) share price had a reasonably volatile month.

The enterprise software company’s shares were down over 8% month to date at one stage before ultimately ending the period right back where they started it.

Where next for the TechnologyOne share price?

The TechnologyOne share price may have been flat in May but one leading broker is tipping it to climb higher in June.

According to a recent note out of Goldman Sachs, its analysts have put a buy rating and $13.30 price target on the company’s shares.

Based on the current TechnologyOne share price of $10.50, this implies potential upside of 27% for investors over the next 12 months.

What did the broker say?

Goldman has been looking over TechnologyOne’s recent half-year results and was pleased with what it saw. This was particularly the case with its annual recurring revenue (ARR) growth, which offset softer than expected margins.

Overall, it feels that this supports its view that the company is well-positioned to at least achieve its medium term ARR target. The broker also likes the company’s defensive qualities in a potentially challenging environment.

Goldman commented:

TNE reported a solid 1H22 result with a stronger-than-expected FY22 ARR outlook offset by softer margins. In our view, TNE is making meaningful strides on the path to A$500mn ARR driven by both an acceleration in the pace of SaaS transition as well as improving underlying fundamentals (net expansion and new business).

Execution on new business growth in the UK and cross-sell into the existing customer base (supported by lower friction to adoption on the SaaS platform) will be key determinants in TNE’s growth post-transition, which we believe will become increasingly evident in coming years.

With a potentially challenging macro backdrop on the horizon we see TNE as offering resilient earnings given its low churn, mission critical software and defensive public sector end markets.

The post Why the TechnologyOne share price could be a top option for investors in June appeared first on The Motley Fool Australia.

More reading

• 2 top ASX shares that could be excellent buy and hold options
• 2 beaten-up ASX tech shares with major upside: experts
• Leading broker names the best ASX tech share to buy following 2022’s tech meltdown
• Top brokers name 3 ASX shares to buy today
• Why Nufarm, Sayona Mining, Tabcorp, and TechnologyOne shares are falling

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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If you’re looking for exchange traded funds (ETFs) to buy next month, then you may want to check out the three listed below.

Here’s what you need to know about these popular ETFs:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF for investors to look at is the BetaShares Asia Technology Tigers ETF. This popular ETF gives investors exposure to the growing Asian economy through a number of the most promising tech shares in the region. This includes ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent. As these tech shares, and therefore the ETF, have been hammered in 2022, now could be an opportune time to make a patient long-term investment.

BetaShares Global Energy Companies ETF (ASX: FUEL)

Another ETF for investors to consider is the BetaShares Global Energy Companies ETF. As its name implies, this fund allows investors to own a slice of some of the biggest energy companies in the world. Among the fund’s holdings are the likes of BP, Chevron, ExxonMobil, and Royal Dutch Shell. All these companies look well-placed to benefit from sky high oil prices which are being underpinned by supply constraints following the loss of Russian supply.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A third ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. This ETF has been inspired by legendary investor Warren Buffett. When he looks for an investment, he has a tendency to choose companies with sustainable competitive advantages or moats. VanEck has taken that into account and pulled together around 50 attractively priced companies with sustainable competitive advantages. These include Alphabet (Google), Altria, Boeing, Coca Cola, Kellogg Co, and Walt Disney.

The post 3 top ETFs to today in June appeared first on The Motley Fool Australia.

More reading

• 3 fantastic ETFs for ASX investors to buy next week
• Why is the Betashares Asia Technology Tigers ETF having such a cracker of a day?
• 3 high quality ETFs for ASX investors to buy now
• 2 beaten down ETFs for investors to buy now
• 3 top ETFs for ASX investors to buy now

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 BetaShares Global Energy Companies ETF – Currency Hedged. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and VanEck Vectors Morningstar Wide Moat ETF. 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 Goodman Group (ASX: GMG) share price was a positive performer on Tuesday despite the market weakness.

The integrated global integrated industrial property company’s shares rose almost 1% to $20.55.

However, this wasn’t enough to stop the Goodman share price from recording a monthly decline of over 14%.

Why did the Goodman share price tumble in May?

The weakness in the Goodman share price appears to have been driven by the prospect of interest rates rising quicker than expected. Traditionally, rising rates have caused a de-rating in the Australian real estate sector and this tradition continued in May with the S&P/ASX 200 Real Estate index falling 8.9%.

This even managed to offset the release of another strong quarterly update from Goodman, which saw the company upgrade its earnings guidance yet again.

In case you missed it, for the three months ended 31 March, Goodman reported a 3.7% increase in like-for-like net property income and a 98.7% occupancy rate.

In light of this strong form and its work in progress of $13.4 billion across 89 projects, management upgraded its earnings per share guidance from 20% to at least 23%. This is the second upgrade of FY 2022.

Goodman’s CEO, Greg Goodman, explained that business is booming and is expected to continue thanks to long-term structural drivers.

He said:

Goodman has had another strong quarter with our operating results reflecting the highly targeted location of our portfolio. This has continued to produce high occupancy, cashflows, and development activity. The business environment is changing, with increased interest rates, inflation, geopolitical risks and the ongoing impacts of the pandemic, however, the long-term structural drivers of demand have not changed.

Where next for its shares?

In response to the update, the team at Citi retained their buy rating and $29.50 price target.

Based on the current Goodman share price, this implies potential upside of 43% for investors over the next 12 months.

Citi believes that Goodman’s guidance is conservative and feels that recent weakness has created a buying opportunity. It said:

Similar to previous periods, we see FY22 guidance as conservative given strong FUM growth into 4Q22, off the back of development completions and rising asset values (as GMG’s book cap rates are softer than market). Moreover, despite fears, we see the growth outlook as being robust for FY23 as well given solid demand for industrial (which is driving market rental growth above longer-term averages) and ongoing investment demand, which should support asset value and AUM growth. We re-iterate Buy and see the -25% YTD share price decline as a good entry point.

The post Why has the Goodman share price tanked 14% in a month? appeared first on The Motley Fool Australia.

More reading

• Why I’d buy these 2 ASX 200 shares
• How to turn $20,000 into $180,000 in 10 years with ASX shares
• Analysts name 2 ASX 200 shares to buy after the selloff
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• ‘We see value’ in this dividend ASX share: expert

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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The Allkem Ltd (ASX: AKE) share price has surged ahead in May.

The lithium company’s shares have gained 12% from their $12.18 market open on 2 May to Tuesday’s closing price of $13.71. In today’s trade, the company’s share price fell 2.77%. For perspective, the S&P/ASX 200 Index (ASX: XJO) closed 1.03% lower today.

So why has Allkem had such a good month?

Why has the Allkem share price gone up?

Allkem is a lithium and boron producer with projects in Argentina, Western Australia, Japan, and Canada.

The company’s share price appears to have surged on the back of positive broker notes and optimism that lithium demand will outstrip supply.

As my Foolish colleague Zach reported on 25 May, Barrenjoey analysts rated Allkem as a buy with a $15 price target. This is 9% more than its current share price.

Brokers at Cowen showed even more optimism toward the Allkem share price, upgrading it to an $18 price target.

Meanwhile, earlier in May, Morgans placed an add rating on the company’s share price with a $16.98 price target. As my Foolish colleague James noted, because Allkem is already shipping lithium in large quantities, it has the potential to benefit from high lithium prices.

In the company’s quarterly activities report released in mid-April, Allkem said it aims to increase lithium production three-fold by 2026. The company is targeting maintaining a 10% share of the global lithium market across the next decade.

The company’s Mt Caitlin operation, located in WA, produced 48,562 dry metric tonnes (dmt) of spodumene concentrate at 5.4% lithium oxide grade in the March quarter. A total of 66,011 tonnes were shipped in the quarter, generating record revenue of US$143.8 million from this project.

Allkem is also expanding the Olaroz lithium carbonate facility in Argentina with a stage two lithium facility. Construction was 77% complete by the end of March with production targeted in the second half of this year.

In Japan, the company has completed the construction of the Naraha lithium hydroxide plant. First production from this site is predicted in the third quarter of this year.

Share price snapshot

The Allkem share price has soared 108% in the past 12 months, while it is up nearly 32% year to date.

For perspective, the ASX 200 benchmark index has returned less than 1% in the past year.

Allkem has a market capitalisation of about $8.7 billion based on the current share price.

The post Why has May been such a great month for the Allkem share price? appeared first on The Motley Fool Australia.

More reading

• Why ASX lithium shares have ‘absolutely more room to run’ in 2022: expert
• 2 ASX All Ordinaries shares rocking new 52-week highs today
• 3 ASX lithium shares set to roar back: experts
• These were the best performing ASX 200 shares last week
• Analysts name 2 of the best ASX lithium stocks to buy now

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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We know that the Vanguard Australian Shares Index ETF (ASX: VAS) is a popular choice for ASX investors. So much so that VAS remains the most popular ASX exchange-traded fund (ETF) by quite a mile. But that’s not all that makes the Vanguard Australian Shares ETF special.

VAS is an index fund, meaning that it blindly mirrors the ASX shares listed on an index in their proper proportions. But this is where VAS is unique. Most index funds that cover Australian ASX-listed shares on our share market do so by using the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 is arguably the flagship index covering ASX shares. It lists the largest 200 or so companies by market capitalisation. So it makes sense that most ASX index funds use this simple benchmark.

But the Vanguard Australian Shares ETF isn’t most funds. VAS is unique among ASX ETFs in that it tracks the S&P/ASX 300 Index (ASX: XKO) rather than the ASX 200.

VAS: Is 300 better than 200?

As you might imagine, the ASX 300 reflects the performance of the 300 largest ASX shares, rather than the ASX 200’s 200.

This means that VAS has exposure to an additional 100 smaller ASX shares that aren’t held by any ASX 200 ETFs. It also means, by extension, that VAS’s portfolio is slightly less concentrated towards the largest blue-chip ASX shares such as BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) than an ASX 200 ETF is.

Thus, we can conclude that VAS is a unique ETF. But so what?

Well, VAS’s unique structure pays off for its investors. Or at least, it has. As of 30 April, VAS has returned an average of 9.78% per annum over the past 10 years. In contrast, an ASX 200 ETF in the iShares Core S&P/ASX 200 ETF (ASX: IOZ) has averaged 9.65% per annum over the same period. Perhaps that is making a mountain out of a molehill, but outperformance is outperformance.

The post VAS is a unique ETF on the ASX. Here’s why appeared first on The Motley Fool Australia.

More reading

• 3 junior miners with initial public offerings and ASX floats in June
• Why did the BHP share price jump in May?
• Why the decision to keep AGL as one makes sense: expert
• Why these 2 ASX 200 shares are undervalued opportunities: WAM
• 3 ASX shares to buy in troubled times: expert panel

Motley Fool contributor Sebastian Bowen 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 Corporate Travel Management Ltd (ASX: CTD) share price finished slightly in the red on Tuesday.

The travel company’s shares reached an intraday high of $22.66 during afternoon trade — a gain of 2% — before falling back to end the day down 0.23% at $22.17.

Despite today’s slip, the Corporate Travel Management share price has gained more than 4% over the past week, helping it claw back some of its losses this month.

What’s driving Corporate Travel Management shares higher lately?

Investors have been buying up Corporate Travel Management shares after they dropped by 15% in the past month.

It appears bargain hunters are taking advantage of the share price weakness following the strong volatility encountered.

Earlier this month, Corporate Travel Management delivered a market update revealing revenue is expected to surpass 2019 levels in Q4 2022. This is being underpinned by the company recovering faster than the corporate travel sector in its largest regions.

Furthermore, management is forecasting earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $265 million on the full recovery, up 75% on pre-COVID numbers.

Supporting these gains, Corporate Travel Management is a much larger business following a series of acquisitions during COVID-19. This includes Travel and Transport, Inc. in 2020 and more recently, Helloworld Corporate in 2022.

Is this a buying opportunity?

The good news for investors is that a number of brokers believe the Corporate Travel Management share price is attractively valued.

The team at JPMorgan raised its price target by 2% to $25.00 in early May, which implies an upside of more than 12%.

On the other hand, Macquarie cut its outlook by 3.4% but to a more bullish price of $25.80 apiece. This represents a potential upside of 16% from where it trades today.

It appears both analysts think that there’s still significant value in the travel company and that a recovery is inevitable.

Corporate Travel Management share price summary

Since this time last year, Corporate Travel Management shares have travelled 6% higher as the travel sector begins to open up.

When looking at the year to date, its shares have pushed slightly ahead, with a 1% gain.

On valuation grounds, Corporate Travel Management commands a market capitalisation of roughly $3.15 billion.

The post Down 15% in a month, is the Corporate Travel share price a bargain? appeared first on The Motley Fool Australia.

More reading

• Are investors missing out on these ASX share opportunities?
• Are ASX 200 travel shares already fully valued in May?
• Why AGL, Booktopia, Cleanaway, and Corporate Travel Management shares are dropping
• Why is the Corporate Travel share price lagging the ASX 200 today?
• ASX 200 midday update: Woolworths’ Q3 update, AGL falls on Cannon-Brookes raid

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 recommended Corporate Travel Management Limited. 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 Bitcoin (CRYPTO: BTC) price is moving higher over the past 24 hours, up 4.6% to US$31,670 (AU$44,051).

While that will be welcome news to investors holding the world’s top crypto by market cap, the Bitcoin price remains down 33.6% year-to-date.

Why have cryptos come under pressure?

The vast majority of cryptos have come under selling pressure this year amid the spectre of rising interest rates. Not to mention the implosion of a top-ranked stablecoin TerraUSD (CRYPTO: UST) and its supporting token Terra (CRYPTO: LUNA) earlier this month.

With the cost of holding money going up, many investors have been lightening their holdings of risk assets, like tech shares priced with distant future earnings in mind.

This has seen the tech-heavy US Nasdaq fall 23.4% so far in 2022. Here in Australia, the S&P/ASX All Technology Index (ASX: XTX) has lost 30.3% year to date.

When investors turn risk averse following hawkish signals from the US Fed and other central banks, the Bitcoin price has fallen along with most risk assets. And when risk appetite increases amid more dovish signals, the Bitcoin price has trended higher in line with moves seen on the Nasdaq.

While crypto enthusiasts had been hoping that the digital assets wouldn’t move in lockstep with share markets, those hopes haven’t materialised.

Until last week…

Bitcoin price decouples from tech shares, but not as hoped

Last week, the Nasdaq finished up 6.7% as the Fed indicated it may not need to hike rates as aggressively as many investors had feared. (US markets were closed yesterday, overnight Aussie time, for the Memorial Day holiday.)

But the Bitcoin price didn’t join in the rally. In fact, it fell 5.5% over that same period. That marked eight weeks in a row the top crypto lost value.

So, what’s going on?

Chief market strategist at Miller Tabak + Co Matt Maley said the hit to the crypto market this month “took a lot of confidence out of the asset class”.

According to Maley (as quoted by Bloomberg):

Therefore, as investors become a little more confident about the markets in general, they’re looking at other areas in which to buy on weakness. They don’t want to get burned again in the cryptos.

Confidence is such an important part of new assets like cryptocurrencies. Until investors regain more confidence in the cryptos, they will no longer be a good a risk-on/risk-off indicator.

Senior market analyst at City Index Fiona Cincotta points out that the Bitcoin price may now only track risk assets on the way down, not up.

This is far from the decoupling that the Bitcoin bulls were looking for.

I doubt this will be the end of the Bitcoin-Nasdaq positive correlation. However, the concern is Bitcoin may only trace the Nasdaq when it falls.

The post Bitcoin price decouples from tech shares, but not as hoped appeared first on The Motley Fool Australia.

More reading

• Why Bitcoin, Dogecoin, and Shiba Inu are falling today
• This is the top performing crypto in 2022 so far, and it sure isn’t Bitcoin
• What do NFTs mean for the gaming industry?
• Looking to spend your crypto? Here are 5 things you can buy in 2022
• What to expect for the Bitcoin price heading into June

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. 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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BHP Group Ltd (ASX: BHP) shares are under the spotlight as investors focus on the imminent demerger of its petroleum business to Woodside Energy Group Ltd (ASX: WDS).

A couple of weeks ago, Woodside shareholders approved the merger of BHP’s oil and gas portfolio with Woodside through an all-share merger. The merger is scheduled for 1 June 2022. BHP is expecting to receive 914,768,948 Woodside shares.

But this demerger has been in the works for a number of months. Now there is talk of another BHP demerger.

BHP to demerge again?

According to reporting by The Australian, Paul McTaggart from the broker Citi has suggested there could be benefits to BHP splitting off its iron ore and coal business from the other commodities.

One of the main reasons for this suggestion is that iron ore and metallurgical coal are now mature businesses that may not have much growth ahead of them. It’s thought demand in China may be peaking because of the effects of ‘peak’ demographics as well as the steel industry being urged to decarbonise.

It’s speculated BHP’s ‘bulks’ business of iron ore and coal could see earnings before interest, tax, depreciation and amortisation (EBITDA) decline from US$29 billion to US$13 billion in FY30. The suggestion was iron ore and coal prices could return to average long-term levels. This could put BHP’s market capitalisation at around $156 billion based on a discounted cash flow valuation and the potential dividend yield.

What would remain?

The BHP ‘metals’ business – which would include potash, copper, and so on – could generate “stable” EBITDA of approximately $12 billion. It’s thought BHP’s Jansen potash business could offset a grade/quality decline over time of the output from the company’s joint venture Escondida mine in Chile.

McTaggart said (as reported by The Australian):

BHP’s metals business – including Jansen – has growth options but we fear these are lost within the broader BHP group.

We see the potential for [BHP] Metals to get a market re-rate given growth options are more meaningful within a smaller $68 billion market cap entity, potentially worth $2 a share.

We believe that mergers and acquisitions are not likely in either iron ore or coal, so mergers and acquisitions within a smaller BHP Metals business would have an ability to make a difference, and Metals would have the cash flow to support large scale mergers and acquisitions.

Are BHP shares currently attractive?

Citi currently rates BHP as a buy, with a price target of $50. That implies a possible upside of around 10% for the mining giant.

Using Citi’s estimates, the broker believes that the BHP share price is valued at seven times FY22’s estimated earnings. Citi expecting another strong year of profit in FY23, with the profit projection putting BHP shares at 7.2 times FY23’s estimated earnings.

As mentioned, the BHP dividend is a sizeable factor in the total returns from the ASX mining share.

Citi’s numbers suggest that BHP is going to pay a grossed-up dividend yield of 15% in FY22 and 13.8% in FY23.

The post Could another demerger be on the cards for BHP shares? appeared first on The Motley Fool Australia.

More reading

• Why did the BHP share price jump in May?
• ASX 200 midday update: Beach, Santos rise but EML, Zip tumble
• Iron ore price to fall 27% by end of 2022: CBA
• Why this rich lister is buying ASX dividend shares that ‘pay you to wait’
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Tristan Harrison 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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June is set to be a big month for ASX floats as many companies finalise their initial public offerings (IPO) and get ready to hit the Australian market.

Here are three junior miners set to list on the ASX next month.

3 ASX shares getting ready to float after IPOs

Southern Palladium Limited (ASX: SPD)

Palladium explorer and developer Southern Palladium is expecting to float on the ASX in early June after offering its shares for 50 cents apiece during its IPO.

The company raised $19 million through its oversubscribed IPO. It was previously planning to list on both the Johannesburg Stock Exhange and the ASX on 25 May. However, both floats have since been pushed back.

The company will acquire a 70% interest in South Africa’s Miracle Upon Miracle Investments Proprietary Limited (MUM) immediately before its float. MUM owns the rights to prospect the Bengwenyama platinum group elements project.

At its offer price, Southern Palladium expects to list with a market capitalisation of $45 million.

Nordic Nickel Limited (ASX: NNL)

Nordic Nickel is expecting to float on the ASX tomorrow after it raised $12 million through its initial public offering, offering 48 million shares for 25 cents apiece.

The company is working on discovering, developing, and supplying sustainable, low-carbon critical minerals for the energy transition.

The company’s projects are located in Finland in a largely unexplored region known to house world-class nickel, copper, and cobalt.

It’s expecting to boast an undiluted market capitalisation of around $28.8 million upon floating.

OD6 Metals Limited  (ASX: OD6)

OD6 Metals is a rare earth element explorer with its sights on potentially developing projects in the future. It’s expecting to hit the ASX in mid-to-late June.

The company has secured more than 4,000 square kilometres of mineral exploration licenses in Western Australia’s southern Esperance-Goldfields region.

Under its prospectus, the company offered new shares for 20 cents apiece. It aimed to raise between $6 million and $8 million.

The company is expecting to list with a valuation of between around $18.5 million and $20.5 million.

The post 3 junior miners with initial public offerings and ASX floats in June appeared first on The Motley Fool Australia.

More reading

• Why did the BHP share price jump in May?
• Why the decision to keep AGL as one makes sense: expert
• Why these 2 ASX 200 shares are undervalued opportunities: WAM
• 3 ASX shares to buy in troubled times: expert panel
• 5 things to watch on the ASX 200 on Tuesday

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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