The Core Lithium Ltd (ASX: CXO) share price is in the green today on the back of strong drilling results.

Core Lithium’s shares are currently swapping hands at 86 cents, an 8.18% gain.

Let’s take a look at what the lithium explorer announced today.

Lithium drilling results

Core Lithium has continued in its discovery of wide and high-grade lithium intersections at its Finniss Lithium Project near Darwin in the Northern Territory.

Two deep diamond drill holes at the BP33 deposit intersected with high-quality spodumene-bearing pegmatite mineralisation. The results show:

• 57.35m at 1.83% lithium oxide at drill hole NMRD016
• 51.0m at 1.63% lithium oxide at drill hole FRCD023

Core Lithium believes this means mineralisation at the BP33 deposit is improving with depth. Further reverse circulation and diamond drilling has confirmed spodumene-bearing pegmatite extends to the south at BP33.

Core Lithium plans to conduct more drilling at this site in the future.

Management comment

Managing director Stephen Biggins described the drilling results as “world-class”.

Biggins added:

Our prime directive is to deliver first production of high-quality lithium concentrate from the Finniss Project this year in the midst of a very high lithium price and high operating margin environment.

Core Lithium expects to report further drill assay results from the Finniss Lithium Project in the coming weeks.

The company will also ramp up its exploration and resource drilling early in the second quarter of 2022.

In 2021, the Core Lithium share price surged 300% on the back of progress at this project. As my Foolish colleague, Aaron has reported Core Lithium may play a key role in meeting the future lithium supply gap.

Core Lithium share price snapshot

The Core Lithium share price is up 36% this year to date compared to the benchmark S&P/ASX 200 Index (ASX: XJO), which is down by almost 5%.

Core Lithium has a market capitalisation of about $1.34 billion based on today’s share price.

The post ‘World-class’ deposits: Why the Core Lithium (ASX:CXO) share price is rocketing 8% today appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, Humm, Magellan, and Smartgroup shares are storming higher

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 AVITA Medical Inc (ASX: AVH) share price is set to finish higher today. This comes after the company announced an update from the United States Food and Drug Administration in regards to its Recell System.

At the time of writing, the regenerative medicine company’s shares are fetching for $2.64, up 6.02%.

What did Avita announce?

In today’s statement, Avita advised it has received approval from the FDA for its Recell Autologous Cell Harvesting Device.

This has led investors to bid up the Avita share price following the positive news from the company.

According to the release, Avita can now begin to supply and market the enhanced Recell system to the United States market.

The Recell System is a device that is used to treat a patient’s acute thermal burns. Healthcare professionals produce a suspension of ‘Spray-On Skin’ cells using a small sample of the patient’s own skin. In turn, this reduces the amount of the donor skin required to heal the burn injury.

The new Recell System has been modified to reduce set-up steps by around one-third and can be operated with reduced support personnel.

This follows the company’s first United States product, the original Recell System, which received FDA approval in September 2018. With the new ease-of-use design now approved, Avita will launch the product in the second quarter of 2022.

Avita CEO, Dr Mike Perry commented:

To ensure Recell continues to meet the needs of our customers, we initiated a program to explore how we could improve the device, and then addressed those matters with this new system.

Based upon research and human factors testing, we are confident that the new Recell System will be positively received by the burn community. The enhancements will provide a range of benefits to clinicians using the device and in turn, patients will benefit as the procedure becomes more efficient.

Avita share price snapshot

The Avita share price has been on a trending decline the past 12 months, reaching a multi-year low of $2.46 last month. Over the period, its shares have lost almost 60%, with year to date down 22%.

Avita commands a market capitalisation of roughly $186.88 million and has approximately 70.89 million shares on its registry.

The post Avita (ASX:AVH) share price jumps 6% following FDA approval appeared first on The Motley Fool Australia.

More reading

• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
• The ASX 200 is awash with 52-week lows on Friday. Here are some of the biggest names growing smaller
• Rural Funds (ASX:RFF) share price jumps on first-half financials
• Brokers name 3 ASX shares to buy today
• Are TPG Telecom (ASX:TPG) shares gearing up for a demerger?

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. owns and has recommended Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical 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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Dividend shares are in focus today as volatility continues to roil ASX shares and global markets alike.

At time of writing, the S&P/ASX 200 Index (ASX: XJO) is down 0.6%.

While today’s price action is largely due to fears that Russia may send its troops into Ukraine, the past weeks’ volatility can largely be blamed on inflation. And central banks.

Not that we’re targeting central bankers, mind you.

But as recently as late last year, investors were being told by central banks the world over that any inflation we were seeing was transitory. And that interest rate rises were likely years away, and would be gradual at that.

Now we’re hearing a decidedly different story.

In the United States, the US Fed may be looking at 6 or more rate rises this year, with talk of a 0.50% rise as early as next month.

While the Reserve Bank of Australia (RBA) has sounded a more dovish tone, analysts are forecasting that the central banks will also begin ratcheting up the official cash rate this year. Albeit at a slower rate than the Fed.

Sudden reversals usher in mayhem

Addressing the impact of the rapidly changing outlook for interest rates on shares on Live Wire, FNArena’s Rudi Filapek-Vandyck said, “Slow, gradual increases and decreases are to everyone’s benefit, but when a sudden, sharp reversal occurs, mayhem is but the logical result.”

Filapek-Vandyck pointed to 1994 as “the last real inflation scare for US financial markets. Up until this year”.

After a sudden shift in US Fed policy at the time, which saw the central bank unexpectedly ramp up interest rates, he said:

The bull market that had been trending higher up until then quickly shifted into a period of high volatility with large draw-downs followed by sharp rallies, after which the same pattern continued, and again. By the end of the calendar year, market indices on balance had hardly moved, but the swings in between had many market observers suffering from whiplash.

With inflation surprising to the upside and central banks tightening more and sooner than markets had forecast, many analysts are downgrading their outlook for 2022.

“Goldman Sachs has now revised its year-end target for the S&P500 to 4,900 from a prior 5100,” Filapek-Vandyck said.

“If US inflation continues to surprise to the upside, and the Federal Reserve needs to apply the brakes harder and faster, this will push US indices to much lower levels,” he added. “Under such a scenario, Goldman Sachs is projecting 3,900 or, in case of an economic recession, 3,600 for the S&P500.”

Down 2.3% yesterday, the S&P 500 is currently at 4,380 points.

ASX dividend shares in focus

“If 2022 follows the same pattern as back in 1994, investors will have to be patient, and endure a number of stomach-turning, volatile trading periods along the way,” Filapek-Vandyck said on Live Wire.

So what’s an ASX investor to do?

According to Filapek-Vandyck:

The best recipe for markets that refuse to go anywhere remains, of course, dependable and reliable dividend payers that run no risk of having to cut or suspend their pay-outs.

Anno 2022, the risk for major dividend disappointments like we witnessed in 2019 and 2020 seems very low. From the banks, to Telstra Corporation Ltd (ASX: TLS), to most REITs and financials and retailers; most dividends look solid and secure, and the current reporting season is providing more evidence with every result release.

Telstra pays a 2.5% trailing dividend yield, fully franked.

Of the big 4 banks, Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) tie for best dividend payers. Both banks pay a dividend yield of 5.1%, fully franked.

The post Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• Are TPG Telecom (ASX:TPG) shares gearing up for a demerger?
• Brokers give their verdict on the Telstra (ASX:TLS) share price post-results
• Why Block, Domain, Telstra, and Wesfarmers shares are dropping
• Telstra (ASX:TLS) share price slides 3% despite ‘strong mobile beat’

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

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It has been a disappointing finish to the week for the S&P/ASX 200 Index (ASX: XJO). Following a poor night of trade on Wall Street, the benchmark index is down 0.5% to 7,257.4 points.

While this means the ASX 200 is down over 4% year to date, some ASX 200 shares are faring even worse.

Three ASX 200 shares that have tumbled to 52-week lows are listed below. Here’s what’s happening with them today:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

The Soul Patts share price hit a 52-week low of $25.37 this morning. This means that the investment house’s shares have now fallen 17% since the start of 2022. While it remains a little unclear why its shares are falling, it could potentially be due to expectations that its earnings peak in FY 2022 and then halve in FY 2023.

Xero Limited (ASX: XRO)

The Xero share price dropped to a 52-week low of $101.51 on Friday. This latest decline means the cloud accounting platform provider’s shares are now down 30% since the start of the year. This appears to have been driven largely by concerns over tech valuations amid the prospect of rising interest rates. Goldman Sachs is likely to see this as a buying opportunity. It has a buy rating and $158.00 price target on Xero’s shares.

Zip Co Ltd (ASX: Z1P)

The Zip share price is out of form yet again and has tumbled to a new 52-week low of $2.53. This latest decline means the buy now pay later (BNPL) provider’s shares are down over 40% since the turn of the year. Investors continue to sell down BNPL shares amid concerns over regulatory risks, valuations, and increased competition and marketing costs.

The post The ASX 200 is awash with 52-week lows on Friday. Here are some of the biggest names growing smaller appeared first on The Motley Fool Australia.

More reading

• Down 80% in a year: Can the Zip (ASX:Z1P) share price sink any lower?
• While everyone was focused on growth shares, these ASX value shares have been quietly but significantly gaining over the last 10 years
• This expert says now is the time to buy ASX dividend shares. Here’s why
• How did ASX tech shares perform today?
• The Zip (ASX:Z1P) share price hit another 52-week low this week. Is now the time to buy?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Washington H. Soul Pattinson and Company Limited, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Washington H. Soul Pattinson and Company Limited and Xero. 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 Rural Funds Group (ASX: RFF) share price is rising today after the agricultural real estate investment trust (REIT) released its latest half-yearly results.

Within the results, the REIT announced additions to its property portfolio.

At the time of writing, the Rural Funds share price is 3.94% higher at $2.90.

Let’s take a look at what the company announced.

What did Rural Funds report?

Highlights of Rural Funds’ HY22 financial results (ending 31 December 2021) included:

• Total net profit after tax of $38.2 million (against its prior corresponding period of $58.4 million)
• Property revenue up 12%, or $3.8m, to $34.8 million
• Balance sheet capacity “within target range”, with gearing at 33%
• Distributions “in line” with forecast at 5.87 cents

During the half-year period, the company made some substantial additions to its property portfolio. As of December 2021, the group’s total assets were at $1.25 billion, up from $1.04 billion in June 2021.

Among these additions was a $100 million entitlement offer achieved back in August, used “to fund the developments of 1,000 hectares of macadamia orchards, the purchase of an 8.3 GL water entitlement and for additional asset acquisitions”.

In November, the company acquired “three cattle and cropping properties” that totalled 33,926 hectares and three mature macadamia orchards.

What else did Rural Funds report?

The company also confirmed a forecasted adjusted funds from operations (AFFO) of 11.9 cents per unit (cpu) and distributions of 11.73 cpu for the second half of FY22. This increase is expected with funds from the J&F Guarantee and acquisitions.

Looking forward to its FY23 distributions, it estimates a 4% increase on FY22 at 12.20 cpu, including franking credits.

Looking forward to the next half, Rural Funds aims to focus on two main strategies to increase investor earnings:

Firstly, the conversion of assets to higher and better use, specifically within the macadamia sector.

The second strategy, improving the productivity of natural resource assets, is being deployed on existing cattle and cropping assets within the portfolio.

Rural Funds share price snapshot

Since the beginning of the year, the Rural Funds share price has dropped 8%. In comparison, the S&P/ASX 200 Real Estate Index (ASX: XRE) has fallen nearly 9%.

Over the last 12 months, Rural Funds shares have increased by 22%.

The company has a market capitalisation of $1.13 billion.

The post Rural Funds (ASX:RFF) share price jumps on first-half financials appeared first on The Motley Fool Australia.

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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Goodman Group (ASX: GMG)

According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this integrated property company’s shares to $29.50. This follows the release of a half year result that came in ahead of Citi’s expectations. The broker remains positive on the Goodman’s outlook thanks to strong demand for industrial properties. It also believes that management’s full year guidance is conservative. The Goodman share price is trading at $23.24 on Friday.

South32 Ltd (ASX: S32)

Another note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this mining giant’s shares to $5.00. Citi notes that South32 delivered a half year result in line with expectations. And while it isn’t immune from cost pressures, the broker expects higher commodity prices to offset this and has upgraded its earnings forecasts. The South32 share price is fetching $4.56 today.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Morgans have retained their add rating and $4.56 price target on this telco giant’s shares. Morgans was pleased with Telstra’s half year results. The broker notes that they came in slightly ahead of expectations and its full year guidance has been reiterated. Having looked through the result, its analysts believe under the hood things are looking good. It also believes sector dynamics look positive and value realisation is possible. The Telstra share price is trading at $3.96 on Friday afternoon.

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

More reading

• Are TPG Telecom (ASX:TPG) shares gearing up for a demerger?
• Brokers give their verdict on the Telstra (ASX:TLS) share price post-results
• Why Block, Domain, Telstra, and Wesfarmers shares are dropping
• Telstra (ASX:TLS) share price slides 3% despite ‘strong mobile beat’
• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report

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 owns and has recommended Telstra Corporation 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 TPG Telecom Ltd (ASX: TPG) share price is in focus today on news of a potential demerger of its business.

There are several different parts of TPG’s business. It operates many different telecommunication brands including Vodafone, TPG and Lebara.

It also owns and operates nationwide mobile and fixed networks that are used to connect Australians.

Potential TPG demerger?

It’s the infrastructure side of the business that could be separated.

According to reporting by The Australian, TPG has chosen Bank of America to help it with the sale of its telco tower portfolio worth $1 billion.

But the newspaper also reported on speculation that a demerger could mean all of its infrastructure assets being divested which could also include the fibre network. Only the operating company might remain. If this option were to be pursued then it could mean those TPG assets being sold/divested for “billions of dollars”.

Potential investors might be interested in TPG’s assets because its fibre network is new and advanced after a period of recent construction.

If some sort of deal were to happen, The Australian suggested that TPG would still keep holding a stake in the demerged entity.

Is there any precedent for this sort of deal?

There has been a lot of merger and acquisition activity over the last year. Telco rival Telstra Corporation Ltd (ASX: TLS) has already done somewhat of a similar move.

At the end of June 2021, Telstra announced it was selling 49% of its towers business for $2.8 billion. The sale was to a consortium consisting of the Future Fund, Commonwealth Superannuation Corporation and Sunsuper.

Telstra’s towers business is the largest mobile tower infrastructure provider in Australia with approximately 8,200 towers. That transaction valued the Telstra InfraCo Towers business at $5.9 billion.

It was also reported that AustralianSuper agreed last year to pay Singtel’s Optus $1.9 billion to own 70% of the telecom towers business.

TPG share price snapshot

Over the last month the TPG share price has fallen over 8%. In the last 12 months it has declined by 17.6%.

The post Are TPG Telecom (ASX:TPG) shares gearing up for a demerger? appeared first on The Motley Fool Australia.

More reading

• Brokers give their verdict on the Telstra (ASX:TLS) share price post-results
• Why Block, Domain, Telstra, and Wesfarmers shares are dropping
• Telstra (ASX:TLS) share price slides 3% despite ‘strong mobile beat’
• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report
• Hold the phone! Telstra (ASX:TLS) delivers solid underlying growth and declares 8cps dividend

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 owns and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom 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 Origin Energy Ltd (ASX: ORG) share price is plunging lower on Friday despite a top broker predicting big things to come.

UBS has retained its bullish view of the stock despite its first half earnings detailing a rough period for the company.

At the time of writing, the Origin share price is $5.74, 6.74% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently also down, having slipped 0.5%.

Origin’s dip follows today’s non-price sensitive announcement from the company stating it has completed a sale of a 10% interest in Australian Pacific LNG (APLNG).

Here’s what UBS analysts are saying about the energy stock’s future.

What does UBS think of Origin’s first half earnings?

The Origin share price is suffering despite UBS’ positivity on its future.

Origin released its earnings for the first half of financial year 2022 yesterday.

Within them, it announced its statutory net profit after tax (NPAT) had risen to $248 million – notably below UBS’ guidance.

As The Australian reports, the broker expected the company’s half year profits to reach $354 million.

Additionally, analysts Tom Allen and Joseph Wong were disappointed Origin hadn’t increased its Energy Markets guidance and provided lower-than-expected guidance for its stake in APLNG.

Its Energy Market’s guidance for financial year 2022 is still $450 million to $600 million of earnings before interest, depreciation, amortisation, and tax (EBITDA).

Meanwhile, Origin expects to receive $1.1 billion of cash flows from APLNG.

However, UBS isn’t worried. The publication quoted the analysts as saying the company’s earnings “appeared positive overall.”

Additionally, the broker is excited about yesterday’s major news from Origin.

What will Eraring’s closure mean for Origin shares?

Origin has decided to close the doors of its Eraring coal-fired power station in 2025 – 7 years earlier than previously expected.

In its place, Origin will build what could be a 700-megawatt battery.

The UBS analysts said the plan will likely “create value for shareholders”.

“[T]he prevailing economics for Eraring face significant headwinds from increased renewable generation capacity, and thermal coal price exposure,” they said.

As more renewable generation capacity enters the market, volatility in intraday price spreads increases. This means the economics for baseload coal-fired generators, like Eraring, will be increasingly challenged as they cannot react to the low wholesale prices during the middle of the day.

What does the broker expect from the Origin share price?

UBS has retained its high expectations of the Origin share price despite its softer-than-expected first half.

It still rates the stock as a ‘buy’ and has slapped it with a price target of $6.65.

That represents a 15.8% upside on the currently Origin share price.

The post Origin (ASX:ORG) share price slides 7% but UBS is still bullish. Here’s why appeared first on The Motley Fool Australia.

More reading

• Australia’s largest coal power plant set for early D-day. What it means for Origin (ASX: ORG) shares
• Origin (ASX:ORG) share price slides 5% following another half of losses
• Power surge! These 2 ASX 200 utilities shares are storming higher today
• Origin (ASX:ORG) share price gains despite $200 million financial hit
• Both have had a bumper start to the year. But which is the better buy, AGL or Origin (ASX:ORG) shares?

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 Ethereum (CRYPTO: ETH) price is down more than 8% over the past 24 hours, currently trading for US$2,885 (AU$4,024).

The overnight loss is enough to send the Ethereum price down by more than 6% since this time last week.

While the majority of cryptos in the top 100 list (by market cap) are in the red over the past seven days amid the current hefty sell-off, a few have managed to hold on to some outsized gains.

Rally crypto surges 25% this week

Despite plunging 17% in the past 24 hours, Rally (CRYPTO: RLY) remains up 25% for the full week.

While we weren’t able to find any direct reason for Rally’s, erm, rally this week, Twitter posts suggest that some deep-pocketed crypto investors have been buying the token over the past few days. Though those same investors may well be the ones hitting the sell button today, driving down the Rally price, the Ethereum price, and most of the top cryptos.

So what exactly is Rally?

According to CoinMarketCap:

Rally is a social token-oriented protocol that allows creators to launch their own token and build a digital economy around their work. In this way, creators … can tap into their communities and offer benefits and perks to recruit, retain and monetize their following in a frictionless manner. Each creator on Rally receives a fully customizable, branded cryptocurrency they can use however they deem fit.

With a total market valuation of US$744 million, Rally counts as the 96th biggest crypto in virtual circulation.

Why is the Ethereum price tumbling?

While Rally’s outsized gains of the past few days leave it up for the week, it hasn’t been immune to the same forces pulling down the Ethereum price.

As with the tumbling Bitcoin price, today’s sell-off is predominantly driven by investor jitters over a possible Russian incursion into Ukraine. While Russian officials deny any intent to invade, the United States is warning that Russian forces could attack at any moment.

That geopolitical uncertainty has sent most risk assets – like high growth tech shares and cryptocurrencies – deep into the red.

While the fortunes of even the biggest cryptos, like Ethereum, have joined the risk-off sentiment, investors seeking haven assets are driving up the price of gold. That’s seeing ASX gold shares post outsized gains today, even as the All Ordinaries Index (ASX: XAO) remains down 0.6%.

The post The Ethereum (CRYPTO:ETH) price tanked this week while this crypto rallied 25% appeared first on The Motley Fool Australia.

More reading

• Why Bitcoin, Ethereum, and Dogecoin plunged today
• How this tech giant could ‘put booster rockets’ under crypto: expert
• Why is the BetaShares Crypto Innovators ETF (ASX:CRYP) leaping 5% today?
• Ethereum and Bitcoin price in focus as world’s biggest asset manager eyes cryptos
• The best cryptocurrency exchanges for Australians

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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 St Barbara Ltd (ASX: SBM) share price is in positive territory on Friday.

At the time of writing, the gold miner’s shares are trading for $1.49, up 1.71%. This means in the past week, its shares have accelerated by 7%.

Let’s take a closer look at some of the factors that are influencing St Barbara shares.

What’s happening at St Barbara?

The St Barbara share price is being pumped up today as the price of gold has surged to US$1,900 an ounce. This follows the tense stand-off between the West and Russia over NATO’s expansion and Ukraine’s potential membership in the alliance.

In times of uncertainty, investors traditionally run to safe-haven assets like gold which has spiked around 5.5% since early February.

In addition, the company released its ore reserves and mineral resources update to the ASX early this morning.

St Barbara highlighted the following:

Total ore reserves are estimated at: 97.8 Mt (million tonnes) @ 1.8 g/t Au (grams of gold per tonne) for 5.8 Moz (million ounces) of contained gold, comprising:

• Leonora Operations: 12.9 Mt @ 5.1 g/t Au for 2.1 Moz of contained gold
• Simberi Operations: 36.7 Mt @ 1.8 g/t Au for 2.1 Moz of contained gold
• Atlantic Operations: 48.2 Mt @ 1.0 g/t Au for 1.6 Moz of contained gold

In summary, the company’s ore reserves have decreased by 460koz (thousand ounces) since 30 June 2021. This was due to adopting an open-pit mining approach to its Tower Hill project in Western Australia and thus removing its underground reserves.

St Barbara advised Tower Hill’s ore reserves will be adjusted following the completion of a pre-feasibility study in Q1 FY23.

Furthermore, the mineral resources statement is listed below:

Total mineral resources are estimated at: 215.8 Mt @ 1.9 g/t Au for 13.5 Moz of contained gold, comprising:

• Leonora Operations: 67.2 Mt @ 3.4 g/t Au for 7.3 Moz of contained gold
• Simberi Operations: 90.0 Mt @ 1.5 g/t Au for 4.2 Moz of contained gold
• Atlantic Operations: 58.6 Mt @ 1.1 g/t Au for 2.0 Moz of contained gold

The company’s mineral resources have increased since the beginning of the new financial year. The change of mining approach for Tower Hill led to the inclusion of additional mineral resources following the net mining depletion.

About the St Barbara share price

Over the past 12 months, St Barbara shares have plummeted around 28%, with year-to-date up marginally by 2%. The company’s share price reached a 52-week high of $2.16 in early 2021 before treading on a downward path.

Based on today’s price, St Barbara commands a market capitalisation of roughly $1.06 billion, with approximately 709.53 million shares outstanding.

The post Here’s why the St Barbara (ASX:SBM) share price is climbing today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Friday
• What’s going on with the St Barbara (ASX:SBM) share price today?

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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