The Sezzle Inc (ASX: SZL) share price is frozen on Monday morning.

This follows a trading halt request by the buy now pay later (BNPL) provider prior to the market open.

Why is the Sezzle share price halted?

The Sezzle share price has been halted on Monday after signing an agreement to be taken over by rival Zip Co Ltd (ASX: Z1P).

According to an announcement out of the latter, Sezzle has agreed to a deal that will see shareholders receive 0.98 Zip shares for every Sezzle share owned.

Based on the current Zip share price, this implies a price of $2.1658 per Sezzle share, which represents a premium of almost 22% to Sezzle’s last close price and values the company at $491 million.

What is management saying?

Sezzle’s Co-Founder, Executive Chairman, and CEO, Charlie Youakim, has spoken very positively about the agreement.

He said: “We are extremely excited about the opportunity to create a leader in the financial services industry by combining with Zip and its management team led by Larry [Diamond] and Pete [Gray]. Paul [Paradis] and I believe it will be a great cultural fit for both our organisations and we’re excited to be part of Zip’s next chapter. I believe the transaction will position us to win in the U.S. and globally.”

This sentiment was echoed by the team at Zip, which believes the deal will be transformational.

Zip’s Co-Founder and Global CEO, Larry Diamond, said: “We are delighted to be bringing Zip and Sezzle together under a transformational transaction that is expected to deliver immediate scale and enhanced growth, which will support our path to profitability. Combining with Sezzle positions us as a leading global BNPL provider and prioritises our ability to win in the important U.S. market,”

“Pete and I have known Charlie and Paul (cofounders of Sezzle) for some time, and we’ve been impressed by what the Sezzle team has achieved. Their responsible lending, their Sezzle Up credit builder programme, as well as their B Corp certification is to be admired. We’re excited to welcome the entire Sezzle team on our journey, as we continue our mission towards being the first payment choice, everywhere and every day,” he added.

What now?

The Sezzle Board has unanimously determined that the proposed transaction is fair and in the best interests of Sezzle and its shareholders. As a result, it is unanimously recommending that Sezzle shareholders vote in favour of the proposed transaction.

It’s a similar story over at Zip, with its Board unanimously recommending that its shareholders vote in favour of the resolutions necessary to implement the transaction.

If all goes to plan, the deal is expected to complete during the third quarter of calendar year 2022.

In the meantime, the Sezzle share price is expected to remain in a trading halt until Tuesday morning, pending the release of an announcement that day.

The post Sezzle (ASX:SZL) share price on watch after accepting Zip takeover offer 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. owns and has recommended ZIPCOLTD 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 Bruce Jackson.

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The S&P/ASX 200 Pharmaceuticals & Biotechnology index (AXPBKD) is down 2.7% in the past year, but this one ASX biotech share could be a winner.

The share has gained 188% in the past year, and 78% in the past six months.

So which ASX biotech share has one expert recommended?

Which ASX biotech share?

ASX biotech share Neuren Pharmaceuticals Ltd (ASX: NEU) could have “significant upside” from its current levels, one analyst believes. In today’s trade, the shares are swapping hands at $3.81, a 2.06% fall.

Karst Peak Capital healthcare research head Hashan De Silva said Neuren could be worth $2.5 billion, more than five times its current market capitalisation. Writing for Livewire, he said:

Even though Neuren’s share price doubled in Dec 21 following positive Phase 3 data, we believe there is still significant upside from current levels; in fact, in our view the risk/reward of the stock is more attractive today than at any point in the past few years and we added to our position following the Phase 3 readout.

The Neuren share price has surged around 129% since market close on 6 December. On 7 December, the company revealed promising results from a phase three trial into the use of its drug candidate Trofinetide in Rett Syndrome. Project partner Acadia Pharmaceuticals (NASDAQ: ACAD) plans to submit a new drug application to the US Food and Drug Administration (FDA) mid-year.

De Silva said he believes there is likely no competition for trofinetide for many years and he believes FDA approval is “very likely”. He said:

Given the strong results in the Phase 2 and Phase 3 trials, the clean safety profile, strong patient advocacy and the lack of any approved drugs for Rett Syndrome, we believe it is highly likely the FDA will approve trofinetide.

We expect approval by late 2022/early 2023 given Acadia’s plan to submit the drug for approval around mid-year.

On Friday, the company also informed the market it has received FDA approval for a phase two trial of the use of NNZ-2591 in Angelman Syndrome.

Neuren share price snap shot

The Neuren Pharmaceuticals share price has surged 27% in the past month although is down 1.5% in the past week.

In comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) has climbed 2% in the past month and is down 3% in the last week.

Neuren has a market capitalisation of about $478 million based on its current share price.

The post Fundie names underappreciated ASX biotech share with ‘significant upside’ appeared first on The Motley Fool Australia.

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• Investing in pharma stocks? Avoid doing these 3 things
• Zip (ASX:Z1P) share price halted after annoucning results, capital raising, and Sezzle acquisition
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• Newcrest (ASX:NCM) shares rise following Pretivm takeover update

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

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The Bitcoin (CRYPTO: BTC) price is down 4% over the past 24 hours to US$37,749 (AU$53,626).

That brings the losses for the world’s biggest cryptocurrency by market cap to 21% so far in the New Year.

And it’s not just the Bitcoin price that’s come under selling pressure.

The Ethereum (CRYPTO: ETH) price is down a painful 30% since 1 January.

But the story for the wider basket of cryptos is still worse.

The charts at CoinMarketCap tell us that aside from three stable coins (tied to fiat currencies) showing fractional percentage gains in 2022, only two of the biggest 80 cryptos are well into the green.

2 cryptos far outpacing the Bitcoin price in 2022

If you scroll down the list of top cryptos by market cap you eventually get to number 26, FTX Token (CRYPTO: FTT) and number 27, Unus Sed Leo (CRYPTO: LEO).

At the time of writing, FTT is up 4% year to date. While that’s hardly shooting the lights out, remember that the Bitcoin price is down 21% over that time. And the S&P/ASX 200 Index (ASX: XJO) is down 8%.

For a really booming gain, however, there’s Leo. It’s up 57% so far in 2022.

So, what do these tokens do?

According to CoinMarketCap, “FTT is the native cryptocurrency token of the crypto derivatives trading platform FTX”.

And Leo “is a utility token that’s used across the iFinex ecosystem … allowing Bitfinex users to save money on trading fees”.

In other words, they’re both what are known as exchange tokens.

Why are these exchange tokens outperforming?

According to crypto analysts, the outperformance of Leo and FTT over the likes of the Bitcoin price in 2022 is closely tied to the volatility gripping crypto markets in recent months.

Exchange tokens tend to do well when the companies they’re tied to (crypto exchanges) perform well.

According to Clara Medalie, research director of crypto trading data company Kaiko (quoted by Bloomberg), “FTX’s token is strongly correlated to any positive news coverage. FTX has had a better year than most other exchanges that have their own exchange tokens, so it isn’t surprising that FTT is positive.”

Looking at the Bitcoin price performance, Jeff Dorman, CEO of digital asset fund manager Arca, said:

For some reason, people still think Bitcoin is a defensive asset, even though it has absolutely no characteristics of a defensive asset. The things that should be defensive are exchange tokens because there’s real revenues, cash flows and amortizations.

Dorman pointed to the increased volatility and greater trading volume as benefitting tokens like Leo and FTT over Bitcoin and Ethereum:

Fundamentally, who benefits from the volatility? The exchanges. Exchange [tokens] should outperform because their volume and revenues go up. Smart investors are investing in exchange tokens. Certainly, anybody who does any real fundamental analysis and cares about the growth of real business.

How the rest of 2022 plays out remains to be seen.

But so far, exchange tokens like Leo and FTT have left the Bitcoin price wallowing in their wake.

The post Why these 2 cryptos are booming in 2022 as the Bitcoin price wallows appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

Pharmaceutical stocks can be great tools for building wealth, provided that you understand how and why to use them — and how not to. Like all investments, it’s entirely possible to get burned by pharma stocks, so you’ll want to minimize the risks.

To help you on your journey, here are three of the biggest mistakes that new pharma investors are prone to making. The road to mastery is long, but if you do your best to avoid these pitfalls, your pharma portfolio could be in much better shape over the years.

1. Disregarding the exclusivity expiration date for key medicines

When a pharmaceutical company gets a new drug approved for sale by a regulatory body, it’s in a race against time to recoup development costs and turn a profit before competitors are legally allowed to copy the drug and sell their own cheaper generic version.

Investors who aren’t aware of looming exclusivity expirations invest in pharma stocks at their own peril. You wouldn’t want to invest in a business that’s already losing revenue from one of its top moneymakers, quickly.

For most drugs developed in the US, exclusivity protections last for five years, and patent protections can last for 20 years. Not all drugs have patent protections, but exclusivity protections are the norm.

In a nutshell, that means five years after a medicine hits the market, there’s a solid chance that the drugmaker’s revenue from it will start to fall as generic competitors enter. For example, one of the biggest questions for investors in AbbVie (NYSE: ABBV) is whether it’ll be able to successfully navigate falling revenue from its blockbuster drug Humira once its exclusivity protections expire next year.

The larger the company, the less the expiration of any individual drug’s protections will impact the stock. Still, the amount of annual revenue from a product matters the most, so be sure to check a company’s latest earnings report to see how much an upcoming exclusivity protection expiration will ding the top line.

2. Ignoring the valuation

As with all stocks, it’s perilous to ignore the valuation of pharma companies. After all, you check the price tag before you buy something to see if it’s a deal worth taking, and pharma stocks should be no different.

What’s an acceptable deal for you depends on your own preferences, but take care to recognize that an overly inexpensive stock should be a red flag, just like an overly expensive one would be. If you see that the price-to-earnings multiple of AbbVie is around half that of its similarly sized competitors like Eli Lilly, try to figure out why the market is valuing it that way.

With AbbVie, the answer almost certainly relates to its looming expiring exclusivity for one of its biggest-earning medicines, so the cheap valuation is a signal that the market is expecting lower future earnings. If you buy the shares and the market is correct, you might be disappointed by languid growth. Worse yet, if you buy an overpriced stock and an economic event causes investors to flee to grounded valuations, you could be looking at substantial losses.

However, you don’t need to obsess over valuations, especially not when your investing thesis for a business is strong. A stock that’s on the expensive side might be that way because of anticipated fast growth that pans out. Alternatively, shares that are priced cheaply might be the result of the market judging a stock’s growth potential incorrectly.

You’re more likely to avoid investor’s regret if you factor valuation analysis into your research process.

3. Selling too soon

Perhaps the largest mistake that new investors make when purchasing pharma stocks is selling them too soon.

The drug development cycle takes quite a while to bear fruit, with the median successful project lasting around 7.2 years from the preclinical stage through the terminal regulatory approval for commercialization. Therefore, future revenue growth needs to be planned for far ahead of time. And because only 13.8% of medicines make it through the clinical trials process, increasing income over time is far from guaranteed.

This is why many companies develop many different medicines in parallel. As a result, major players tend to have at least a couple of programs that are scheduled to launch each year. When certain programs fail, it causes an immediate and negative impact on the share price. But once approved, medicines often take a year or more from their launch to see widespread adoption, and peak sales can sometimes occur only several years after launch.

So the positive impacts on shareholder value are partially registered over time, which is one of the reasons it’s so important to keep holding even when there’s been a setback with an important program.

In other words, if you buy a pharma stock only to hold it for a year before selling, you probably didn’t get much of the benefit of the slow march of the development process. Especially when a drug stock pays a dividend, holding it for at least three years is highly recommended. And if you commit to a multi-year holding period, you’ll be better prepared to stomach the inevitable downward volatility.

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

The post Investing in pharma stocks? Avoid doing these 3 things appeared first on The Motley Fool Australia.

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• ‘We are accountable’: Macquarie (ASX:MQG) weighs in on the future of green hydrogen
• Newcrest (ASX:NCM) shares rise following Pretivm takeover update
• ‘Impressive and consistent’: Sandfire Resources (ASX:SFR) share price gains on half-year earnings

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

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

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The Zip Co Ltd (ASX: Z1P) share price won’t be going anywhere today.

This morning the buy now pay later (BNPL) provider released its half year results and requested a trading halt.

Zip share price halted amid capital raising

• Transaction volumes up 92% over the prior corresponding period to a record $4.5 billion
• Transaction numbers up 147% to a record of 36.3 million
• Revenue up 89% to $302.2 million
• Cost of sales up 192.5% to $242.2 million
• Gross profit down 23.2% to $59.1 million
• Loss before tax of $214.2 million

What happened during the first half?

In line with its pre-released half year results, Zip delivered a 92% increase in transaction volume to $4.5 billion and an 89% lift in revenue to $302.2 million.

Management revealed that this was driven by growth across all geographies, underpinned by customers continuing to benefit from products such as Tap and Zip, and deepening engagement through initiatives such as Zip’s personalised rewards offering.

As per its previous update, things were not quite as positive for its earnings. Due to a significant jump in its cost of sales, Zip reported a 23% decline in gross profit to $59.1 million and a loss after tax of $214.3 million.

Zip share price halted

Given that Zip’s results have been pre-released, the main focus for investors is likely to be the Zip share price being a trading halt.

This morning the company requested a halt so it could undertake a $198.7 million capital raising. This comprises a fully underwritten institutional placement to raise $148.7 million and a $50 million share purchase plan.

Zip is raising the funds at $1.90 per share, which represents a 14% discount to the Zip share price at the close of play on Friday.

Why is it raising funds?

Zip has launched its capital raising after announcing an agreement to acquire rival BNPL provider Sezzle Inc (ASX: SZL).

And while the funds won’t be used to acquire Sezzle, management intends to use the additional capital to support its growth and execute on the potential synergies from the transaction.

Sezzle acquisition

Zip has signed an agreement to acquire Sezzle for a consideration of 0.98 Zip shares for every share Sezzle share.

Based on the current Zip share price of $2.21, this implies a price of $2.1658 per Sezzle share, which represents a premium of almost 22%. It also values Sezzle at approximately $491 million.

Zip’s Co-Founder and Global CEO, Larry Diamond, commented: “We are delighted to be bringing Zip and Sezzle together under a transformational transaction that is expected to deliver immediate scale and enhanced growth, which will support our path to profitability. Combining with Sezzle positions us as a leading global BNPL provider and prioritises our ability to win in the important U.S. market,”

“Pete and I have known Charlie [Youakim] and Paul [Lahiff] (cofounders of Sezzle) for some time, and we’ve been impressed by what the Sezzle team has achieved. Their responsible lending, their Sezzle Up credit builder programme, as well as their B Corp certification is to be admired. We’re excited to welcome the entire Sezzle team on our journey, as we continue our mission towards being the first payment choice, everywhere and every day,” he added.

Subject to approvals, Zip expects the transaction to complete by the end of the third quarter of calendar year 2022.

The post Zip (ASX:Z1P) share price halted after annoucning results, capital raising, and Sezzle acquisition 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. owns and has recommended ZIPCOLTD 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 Bruce Jackson.

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The CEO of Macquarie Group Ltd (ASX: MQG) has said that green hydrogen is “part of the solution” to solving the problem of emissions and climate change.

Macquarie is one of the larger investors in green investments with its Green Investment Group (GIG).

There are a number of different ways that emissions can be reduced.

After talking with her teenage children, Macquarie Boss Shemara Wikramanayake acknowledged that her generation are accountable to the younger generation who can only help with awareness and start fixing the problems, according to reporting by The Australian.

She was quoted as saying:

And what our generation has to do is not carry on saying ‘Oh there’s a problem’…we have to get on with the solution.

Macquarie now has 300 renewable energy projects around the world. This is having a growing presence on Macquarie’s earnings and balance sheet, which could mean a bigger influence on the Macquarie share price.

Green hydrogen

Green hydrogen is hailed as one of the main ways that the world can decarbonise. Renewable energy and batteries are one part of the strategy. But there are also some areas and industries that are harder to decarbonise like heavy industry.

Hydrogen could be a key fuel. One of the main ways to make emission-free hydrogen is to split hydrogen from water using an electrolyser and renewable energy.

Ms Wikramanayake said that both ‘blue’ and green hydrogen may be required during the energy transition, according to reporting by The Australian. She said:

Each jurisdiction will have to, depending on its economic drivers, determine which is best

Frankly, blue hydrogen in the early stages will probably become cost competitive sooner than green…for blue hydrogen, there’s existing infrastructure that you can actually use already.

Ultimately it’s not a choice, I think we have to run both in parallel.

Meanwhile, Andrew Forrest and Fortescue Metals Group Limited (ASX: FMG) are heavily pursuing green hydrogen. Mr Forrest says that blue hydrogen and carbon capture are not effective enough at reducing emissions.

Macquarie is reportedly working with BP, the oil giant, to conduct feasibility studies on creating green hydrogen hubs for both domestic and exporting opportunities.

What else is Macquarie working on?

The Australian also reported that Macquarie is also working on the feasibility of the first batch of offshore wind projects on Australia’s coastline.

The global investment bank is working on a 1GW offshore wind project off Victoria’s Bass Coast and perhaps others. These are being supported by the Victorian government. Ms Wikramanayake thinks offshore wind will get traction, who said:

It’s a new technology for Australia, offshore wind, but internationally it’s really well established. It’s proven to be clean and cost competitive etc, so we’re hoping we can bring offshore wind into the mix of renewable sources here for Australia’s transition.

Macquarie share price snapshot

Whilst the Macquarie share price has fallen 14% since the start of 2022, it’s up around 25% over the last 12 months.

The post ‘We are accountable’: Macquarie (ASX:MQG) weighs in on the future of green hydrogen appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns Fortescue Metals Group 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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Newcrest Mining Ltd (ASX: NCM) share price is edging higher today following an update from the company.

At the time of writing, the gold miner’s shares are swapping hands for $25.22 apiece, up 1.61%.

Newcrest expands gold mine portfolio

In today’s release, Newcrest advised it has received the final approval to acquire the remaining stake in Canadian metals and mining company, Pretivm Resources.

The transaction received final approval under the Investment Canada Act, meaning that all regulatory approvals have now been obtained.

As a result, the Pretivm acquisition is expected to complete on or about 9 March 2022.

Currently, Newcrest currently holds a 4.8% stake in its Canadian counterpart.

Last month, Pretivm shareholders and option holders voted overwhelmingly in favour of the transaction. In total, 95.48% of the votes cast approved the special resolution.

Under the agreement, Pretium shareholders who elected to receive maximum cash consideration will receive approximately C$10.81 (A$11.79) in cash and 0.3357 Newcrest shares per Pretivm share.

For Pretivm shareholders who elected to receive the maximum share consideration, they will be allocated 0.8084 Newcrest shares per Pretivm share.

Pretivm shareholders who did not elect cash or Newcrest shares will receive the default consideration of 50% cash and 50% Newcrest shares. This will be C$9.25 (A$10.09) in cash and 0.4042 Newcrest shares per Pretivm share.

Quick take on Pretivm Resources

Pretivm is the owner of the Brucejack gold mine in British Columbia, Canada — one of the highest-grade operating gold mines in the world. It has an estimated gold production of 311koz (thousand ounces) per annum at an all-in sustaining cost (AISC) of $743 per ounce. The projected mine life is around 13 years.

Furthermore, Brucejack is conveniently located about 140 kilometres from Newcrest’s majority-owned and operated Red Chris mine. This allows the company to strengthen the region by having close access to critical infrastructure.

The combination of Newcrest and Pretivm will create the largest gold miner in the Tier 1 area of British Columbia.

Newcrest share price summary

Over the past 12 months, the Newcrest share price has been on a rollercoaster ride, posting a gain of around 2.7%. Year-to-date, its shares are up around 3.4% for investors.

The company holds the title of owning and operating some of Australia’s largest gold and copper mines. While the company appears solid on paper, its shares have not been immune to volatile market conditions.

Based on today’s price, Newcrest commands a market capitalisation of roughly $20.7 billion, with approximately 818 million shares outstanding.

The post Newcrest (ASX:NCM) shares rise following Pretivm takeover update appeared first on The Motley Fool Australia.

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

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The Sandfire Resources Ltd (ASX: SFR) share price is gaining after the company released its earnings for the first half of financial year 2022.

At the time of writing, the Sandfire share price is $7.14, 2% higher than its previous close.

Sandfire Resources share price rises on strong half

• Revenue of US$311.8 million – up from US$256.1 million in the first half of financial year 2021.
• Earnings before interest, tax, depreciation, and amortisation (EBTIDA) of US$161.6 million – up from $138.3 million
• Net profit after tax (NPAT) of US$55.2 million – up from US$44.4 million
• Earnings per share (EPS) of 14.2 US cents – down from 24 US cents
• 3 cent fully franked interim dividend declared – down from last year’s 8 cent interim dividend

Over the first half, Sandfire’s EPS was impacted by the issuing of equity due to the company’s acquisition of the MATSA Mining Complex in Spain.

Though, a strong copper price and production at its DeGrussa operations delivered the company record half-year revenue.

It sold 34,946 tonnes of contained copper and 16,161 ounces of contained gold last half.

For comparison, those figures came to 35,790 and 21,343 respectively in the prior comparable period.

The copper price was consistently between US$9,000 and US$10,600 in the first half.

Sandfire recorded cash flow from operating activities of US$101.1 million – up from US$89.2 million.

At the end of the period, the company boasted US$321.4 million of cash.

What else happened in the half?

Sandfire announced its US$1.86 billion acquisition of the MATSA Mining Complex in September, undergoing a $1.248 billion capital raise to fund it.

The Sandfire share price plummeted 6.8% when it returned to trade following the announcement of the acquisition and capital raise.

The following month, Sandfire announced the sale of its holding in Adriatic Metals Plc (ASX: ADT).

Sandfire’s 16% holding in Adriatic Metals brought it a $97 million payday.

What did management say?

Sandfire’s managing director, Karl Simich commented on the company’s first half results, saying:

With the completion of [the MATSA acquisition] in February, Sandfire is on the way to completing our transition from a single-mine company into a diversified and sustainable international miner – and we are doing so against the backdrop of one of the best commodity market environments seen in over a decade.

The combination of surging demand from the renewable energy and EV sectors, together with declining metal stockpiles and supply side tightness exacerbated by global supply chain instability, has seen the copper price surge to new highs – with further upside expected.

As well as expanding through acquisition, Sandfire also grew organically during the first half of [financial year 2022], with construction of our new Motheo Copper Mine in Botswana really stepping up a gear.

Our strong financial results for the first half reflected another impressive and consistent performance by the DeGrussa Operations in Australia. This led to record sales revenue, strong operational cashflows and a 24% increase in NPAT.

What’s next?

According to Simich, Sandfire’s first half production is in line with its financial year 2022 guidance.

It’s expecting to produce between 64 kilotons and 68 kilotons of contained copper for the period.

Additionally, the company is predicting contained gold production of between 30 kilotons and 34 kilotons.

Its full year results will also include 5 months of contribution from the MATSA operation.

Over that time, Sandfire expects it will produce around 26,000 tonnes of copper, 37,000 tonnes of zinc, 1,000 tonnes of palladium, and 820,000 ounces of silver.

 Delving deeper into the company’s outlook, Simich commented:

[Financial year 2022] and [financial year 2023] will be transitional years for Sandfire, underpinned by a strong and growing production base at MATSA. DeGrussa production will phase out post the first quarter of [financial year 2023], to be replaced towards the end of [financial year 2023] by new production from the Motheo Copper Mine in Botswana, where we expect to scale up in [financial year 2024] with the development of the satellite A4 Deposit.

We are also looking to progress the development of our Black Butte Copper Project in the US, and with further organic growth opportunities, support our aspirational vision to more than double production towards 300,000 tonnes of copper equivalent by the end of this decade.

Sandfire Resources share price snapshot

The Sandfire share price has been outperforming the market in 2022.

It has gained 5% since the start of this year. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has slipped 7%.

Additionally, Sandfire’s stock has gained 23% since this time last year.

The post ‘Impressive and consistent’: Sandfire Resources (ASX:SFR) share price gains on half-year earnings appeared first on The Motley Fool Australia.

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

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The Allkem Ltd (ASX: AKE) share price is pushing higher on Monday morning.

At the time of writing, the lithium miner’s shares are up 2% to $9.30.

This follows the release of the company’s first set of results since the merger of Galaxy Resources and Orocobre.

Allkem share price jumps after strong half year result

• Revenue of US$192.3 million
• Gross profit of US$118.45 million
• Earnings before tax of US$42.1 million
• Net profit after tax of US$13 million
• Cash and cash equivalents of US$449.8 million

What happened during the first half?

For the six months ended 31 December, Allkem delivered revenue of US$192.3 million.

This result includes a four-month contribution from the Mt Cattlin business following the Galaxy-Orocobre merger. This makes comparing the result to the prior corresponding period difficult. However, a good example of its excellent performance can be seen with the Olaroz operation, which was part of the old Orocobre business. It reported a 142% increase in revenue to US$65.6 million.

Olaroz’s strong revenue was driven by the sale of 5,915 tonnes of lithium carbonate and a 218% jump average FOB pricing to US$11,095 per tonne. It also recorded a gross profit margin of 68% for the period.

Over at Mt Cattlin, for the period 25 August to 31 December, it reported sales of 96,871 dry metrics tonnes (dmt) of spodumene concentrate, grading 5.7% Li2O, at an average price of US$1,186/tonne CIF. This underpinned revenue of US$114.9 million and a gross profit margin of 62%.

As for its earnings, Allkem reported gross profit of US$118 million, group EBITDAIX of US$97.9 million, and a consolidated net profit after tax of US$13 million. The latter compares to a loss of US$29.1 million a year earlier. Management advised that this reflects improved product prices and comprehensive cost management mitigating inflationary pressures.

Management commentary

Allkem’s Managing Director and CEO, Martin Perez de Solay, was pleased with the company’s post-merger performance.

He said: “Post-merger we achieved record revenue for the Group, not only from strengthened pricing but from successfully and safely producing high-quality lithium products from our global operations that continue to meet the requirements and specifications of our long-term customers.”

“Amidst surging demand for lithium products and continued challenges arising from the COVID-19 pandemic, our team also achieved significant advancements at all our development assets across the globe with both Olaroz Stage 2 and Naraha on the cusp of commissioning this calendar year. With two revenue generating operations and a healthy balance sheet, we are in a strong financial position to continue to advance Sal de Vida and the development of James Bay.”

Outlook

Also likely supporting the Allkem share price today is management’s commentary on the outlook for lithium prices.

It confirmed that upwards pricing momentum for lithium products continues. In fact, its March quarter indicative pricing for 43.5kt of spodumene concentrate shipments is US$2,500 per tonne CIF for 6.0% Li2O.

Furthermore, lithium carbonate prices for the second half are expected to be ~US$25,000 per tonne FOB. This is up ~125% on the first half and 25% ahead of its previous guidance.

The post Allkem (ASX:AKE) share price higher amid results and ‘surging demand for lithium’ appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Allkem. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

Investing is a very serious business. If you buy the right stocks, they can pay for your house, your retirement, or your child’s education. Investing can make you a millionaire. But thinking about money can cause stress. And, ironically, if you worry about your investments a lot, you might well turn out to be an underperforming stock investor.

What I’ve discovered is that if you can reduce your stress level with stock investing, it makes it less scary — especially as your stocks increase in value dramatically over time. Here are four tips about how to put the odds of the stock market in your favor.

1. Stay in the market and give your investments time to grow

Many investors get very competitive, wanting to make money fast. One mistake many make early on is actively managing their portfolios, buying and selling stocks. Most day traders find their performance turns out to be mediocre at best.

It’s counterintuitive, but if you stop paying as much attention to the stock market, it can be more effective in doing its work in building up your wealth. Your stocks don’t need you to micro-manage them. More often than not, your stocks just needed you to leave them alone.

2. Forget about the money

Amazing investments can be highly volatile in the short term. When you buy a high-flying stock, your portfolio might drop thousands of dollars in a day. Overcome by fear, you might remove your money from the market at the worst possible time. And that’s how people lose money in the stock market.

Think about it: On bad days in the market, billionaires lose billions of dollars. Those losses happen all the time. In the short term, stocks can do anything. Those whose wealth is tied to the market feel the impact of those movements constantly.

So many people succumb to greed and cash out when they’ve made some short-term money. Or they succumb to fear and cash out when they’ve lost some short-term money.

If you give in to these impulses, though, you’ll almost certainly underperform the stock market dramatically. You’ll miss out on the gains you could have made by holding onto winning stocks over time.

3. Winners might look like losers in the short term

Aggressive investors swing for the fences and try to find the best winners in the stock market. I love the high flyers. But doing so means getting a lot of calls wrong.

The experience is especially humbling because companies often mount comebacks from seemingly impossible challenges. Those who’ve held winners like Amazon (NASDAQ: AMZN), and hold them through all the volatility, are rich. But that’s easier said than done. Amazon had several 50% drops and one scary 90% drop.

AMZN data by YCharts

Imagine sitting on that 92% loss. Indeed, Amazon wasn’t the only stock seeing losses of that magnitude. There were lots of internet stocks that cratered. Many of them never came back.

But in Amazon’s case, the dramatic ups and downs would fade in importance over time and yield huge gains. Now, all you see is that magnificent chart, up and to the right.

AMZN data by YCharts

4. One or two massive winners could make you rich

What’s strange about stock picking is that you don’t know which picks will turn out to be massive winners and which ones will produce complete losses. You might have some good (or bad) feelings in the short term. But the real game of amassing riches is what your stock does over a decade or two.

To be a successful investor, you need to take smart risks. Indeed, every stock investment is a risk, because you might lose your money. And then you have to be patient and let the story play out. Risk-taking and patience aren’t two character traits that usually go together. One of them will probably come naturally to you, and the other one you might have to work on.

Yet it doesn’t take many stocks producing returns of 10,000%, 25,000%, or even 100,000% or more to make up for a whole bunch of 100% declines. Find those one or two winners, and they’ll define your success as an investor.

The lesson here is obvious: If you find an amazing stock, keep it.

Investing is a very serious business

The toughest challenge in investing is understanding that paying too much attention to your stocks’ performance can be just as damaging as not paying enough attention. If you focus on your companies and how their businesses are doing, you will be rewarded over time.

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

The post 4 ways to win in the stock market appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Taylor Carmichael owns Amazon. The Motley Fool owns and recommends Amazon. The Motley Fool has a disclosure policy.

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

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