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.

It’s been a good year for the stock market, with the broad-based S&P 500 up by roughly 25%, through Dec. 8. But it’s been a great year for the cryptocurrency space, with the aggregate value of digital currencies more than tripling to $2.37 trillion over the same span.

But for some well-known cryptocurrencies, a 200% year-to-date gain would represent a drop in the bucket. For each of the following four cryptocurrencies, a $10,000 investment at midnight on Jan. 1 would have easily made you a millionaire, if not billionaire, as of late evening on December 8.

Shiba Inu: $5,024,657,500

In what may well be described as the most eye-popping single-year gain in history, meme coin Shiba Inu (CRYPTO: SHIB) has moonshot from an opening value of $0.000000000073 per SHIB on Jan. 1 to almost $0.000037 per token as of Dec. 8. In losing six zeroes, Shiba Inu has delivered a greater than 50,000,000% year-to-date gain. In context, a $10,000 investment would now be worth more than $5 billion!

As you might imagine, a lot of catalysts have played a role in pushing Shiba Inu to historic short-term gains. In no particular order:

• More cryptocurrency exchanges than ever are listing SHIB, which is improving liquidity and increasing awareness of the coin.
• The launch of decentralized exchange ShibaSwap in July has also boosted liquidity, as well as lifted the average hold period for SHIB tokens (thanks to staking capabilities).
• The fear of missing out (FOMO) has clearly played a role, with investors expecting more upside, even on the heels of life-altering gains.
• Coin burn has reduced the supply of SHIB tokens, making each remaining coin scarcer.

But in spite of all these positives, a simple truth remains: Shiba Inu lacks competitive advantages, true differentiation, and meaningful utility. Fewer than 380 merchants accept SHIB as a form of payment, and nothing about it stands out as a lure that’ll drive businesses to accept it over a growing sea of other payment coins. Shiba Inu may have had a year to remember in 2021, but it could well be the worst-performing popular digital currency in 2022.

Axie Infinity: $2,177,500

Putting aside Shiba Inu’s outlier gain, the next best-performing cryptocurrency in 2021 has been Axie Infinity (CRYPTO: AXS). A $10,000 investment to begin the year in this relatively obscure token would now be worth almost $2.18 million.

Axie Infinity is a play-to-earn game built on the trusted Ethereum blockchain. The game allows users to collect, raise, and battle token-based monsters known as Axies (you’ll need at least three Axies to go to battle). As with traditional battle gaming, experience points are earned by the winner, which can be used to improve certain aspects of a users’ Axies.

Additionally, each of these Axie’s is a non-fungible token (NFT) that can be monetized. Users can buy or sell Axies in a marketplace, or they can be bred to create unique Axies that can be utilized in the game or sold later.

The reason Axie Infinity has likely done so well has to do with the revenue the game is generating. In August and September, Axie brought in $342 million and $220 million in revenue, respectively. That placed it second only to Ethereum among blockchain-based applications. 

Perhaps the biggest concern, as we head into 2022, is whether Axie Infinity can remain popular. With so many other blockchain-based games in development, gaming interest can shift in the blink of an eye.

The Sandbox: $1,434,500

Another cryptocurrency that wasn’t playing around in 2021 is The Sandbox (CRYPTO: SAND). SAND, the primary protocol token of the platform, began the year below $0.04, but has since rallied to well over $5. This means a $10,000 investment on Jan. 1 would be worth over $1.4 million, as of Dec. 8.

The buzz surrounding The Sandbox is somewhat similar to what’s fueled Axie Infinity higher. The difference is The Sandbox is all about monetizing the metaverse — i.e., the next iteration of the internet that allows users to interact in a 3D virtual environment. This blockchain-based gaming platform rewards gamers for creating virtual worlds and interacting within their own or other worlds.

What’s particularly appealing about The Sandbox is that, unlike most games which are owned/developed by corporations, users retain full ownership of their virtual worlds as NFTs. These NFTs can be utilized within a game on The Sandbox’s platform, or they can be monetized on its marketplace.

Furthermore, SAND tokens have likely benefited from brand-name companies investing in the metaverse. For example, Facebook changing its name to Meta Platforms and announcing billions in annual investments geared at the metaverse and virtual reality provides a tangible lift for SAND.

Though it remains to be seen if metaverse investments will pay off in the short-term, The Sandbox has certainly put itself on the map this year.

Solana: $1,186,600

Last, but not least, a $10,000 investment in Solana (CRYPTO: SOL) at the beginning of the year would have crypto investors smiling ear to ear. That’s because Solana has skyrocketed from around $1.61 to north of $191 per token. Investors would be nearing $1.2 million in their portfolios with an initial $10,000 investment.

The key aspect about Solana that’s driven its token price higher is the need for speed. Whereas Bitcoin (prior to the Taproot upgrade) and Ethereum are processing approximately 7 and 13 transaction per second (TPS), Solana is capable of handling 50,000 TPS. To put this figure into context, 50,000 TPS would be more than double the 24,000 TPS claimed by global payment processing giant Visa.

The secret sauce that allows Solana to be such a blockchain-based speed demon is its unique proof-of-history protocol. Typically, validators need to talk to each other to determine how much time has passed between events. But with Solana, the proof-of-history protocol establishes a record of time that’s elapsed between events. Eliminating this validator lag dramatically speeds up the network and gives it real-world appeal.

The icing on the cake is that Solana’s transactions are also markedly cheaper than payments executed on existing infrastructure. It would take in the neighborhood of 4,000 transactions for a user to tally a mere $1 in fees on Solana’s network.

Among this years’ top crypto performers, Solana is the one you should be watching closest. 

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

The post 4 cryptocurrencies that turned $10,000 into $1 Million (or more) in 2021 appeared first on The Motley Fool Australia.

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Sean Williams owns Meta Platforms, Inc. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Meta Platforms, Inc, Bitcoin and Ethereum. The Motley Fool Australia has recommended Meta Platforms, Inc. 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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Monday is proving to be rough for the Insurance Australia Group Ltd (ASX: IAG) share price. Its struggle comes after a top broker downgraded the company’s stock.

UBS dropped its price target for IAG shares to $4.20 over the weekend, slapping them with a sell rating.

At the time of writing, the IAG share price is $4.25, 3.52% lower than its previous close of $4.40.

For context, the S&P/ASX 200 Index (ASX: XJO) is recording a 0.6% gain today.

Let’s take a closer look at what the broker has to say about the insurance provider’s shares.

IAG share price tumbles amid broker downgrade

The IAG share price is suffering amid a flurry of broker downgrades.

As The Motley Fool Australia reported yesterday, the company’s shares were recently downgraded to ‘underweight’ by Morgan Stanley and plastered with a $3.75 price target.

Now, UBS has followed suit. According to reporting by The Australian, the broker told clients that it’s concerned by a lawsuit facing an IAG subsidiary and the company’s growth prospects. UBS analysts were quoted as saying:

The preeminent NRMA franchise is being sued by the corporate regulator for overcharging. The commercial lines business is addressing a cost problem and undergoing remediation work.

The group’s volume outlook is weak after divesting most of its growth options in recent years. The net positive impacts presented by COVID over the past two years are now reversing as supply-side constraints drive a spike in claims.

Indeed, IAG announced that the Australian Securities and Investments Commission (ASIC) launched civil proceedings against its subsidiary in October.

The watchdog alleges the company increased premiums for some NRMA insurance customers before applying loyalty and ‘no claim’ discounts.

The analysts also reportedly stated:

We understand there is substantial claims “catch-up” now coming through as states open up and building and motor supply bottlenecks tighten.

This will not only utilise the lockdown savings of [the first quarter of financial year 2022], but likely require further home and motor repricing into [2022].

This comes at the same time as ASIC’s impending lawsuit into overcharging, which implies that Direct Insurance Australia has over-earned by ~3% of annual margin since [the second half of financial year 2018].

Today’s tumble included, the IAG share price is 10% lower than it was at the start of 2021. It has also fallen 3.9% over the last 30 days.

The post Broker says sell: IAG (ASX:IAG) share price slumps 3.5% appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL acquisition talks, Charter Hall guidance upgrade
• Top brokers name 3 ASX shares to sell next week
• Why the IAG (ASX:IAG) share price could be cheap for patient investors
• IAG (ASX:IAG) share price on watch following trading update
• What happened to the IAG (ASX:IAG) share price last month?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Insurance Australia 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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Unless ASX-listed BNPL shares experience a dramatic Christmas rally, the sector looks likely to underperform the S&P/ASX 200 Index (ASX: XJO) in 2021.

This sort of performance almost seems uncharacteristic for companies like Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P). Since 2018, these Aussie buy now, pay later (BNPL) high-flyers have cemented substantially higher returns than the benchmark — prior to this year.

However, this year gave rise to headwinds for ASX BNPL shares, leading to a dramatic shift in sentiment. For investors, the important question is: will the waning optimism continue into 2022?

What does the future look like for ASX BNPL shares?

The BNPL industry has never exactly had it easy in terms of criticism. From the early days, many ridiculed the interest-free option as an investment prone to increased regulation, competition, and bad debts. Despite this, investors swarmed the burgeoning market in recent years.

Fast forward to the present and these sceptical remarks are beginning to be heard by market participants. Adding fuel to the fire, payments industry expert Grant Halverson is forecasting bleak days to come in the next year for ASX BNPL shares.

According to Halverson, there are three key headwinds that instalment payment providers could face in 2022:

• Rising bad debts
• Higher interest rates compressing margins
• Lack of moat

For these reasons, Halverson holds a concern that the companies’ balance sheets and cash flows could come under pressure in the year ahead. Equally, Halverson suspects ASX BNPL shares could be in for another year of poor performance.

This isn’t exactly music to the ears of BNPL investors. Especially when all of the notable ASX-listed BNPL shares have been trounced by the broad market index this year. The mining and bank-heavy index easily outpaced the payments sector this year due to its sizeable gains in financials.

As shown in the chart above, Latitude Group Holdings Ltd (ASX: LFS) was one of the better performing shares out of the ASX BNPL shares basket. Yet, even the best of the bunch declined by 26.3% compared to the benchmark’s 8.74% gain.

A positive take

There are still a few brokers undeterred by the potential headwinds described by Halverson. For instance, the team at UBS holds a neutral rating on Zip shares. The broker believes the Zip share price would be fair value at $5.20, compared to its current $4.91.

Finally, Macquarie analysts had a buy rating on Afterpay prior to its surprise merger proposition from Square Inc (NYSE: SQ).

The post What has experts worried about ASX BNPL shares in 2022? appeared first on The Motley Fool Australia.

More reading

• What is the outlook for the Zip (ASX:Z1P) share price in 2022?
• These are the 10 most shorted ASX shares
• Afterpay (ASX:APT) shareholders will vote on the Square takeover next week. Here’s what you need to know
• Why Afterpay, AVZ, Irongate, and Santos shares are dropping
• The Afterpay-Square takeover deal is worth $9bn less now

Motley Fool contributor Mitchell Lawler owns AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended AFTERPAY T FPO, Block, Inc., and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Humm 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decent gain. At the time of writing, the benchmark index is up 0.6% to 7,397.4 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

AVZ Minerals Ltd (ASX: AVZ)

The AVZ share price is up almost 19% to 70 cents. This appears to have been driven by news that the lithium explorer is being added to the Global Rare Earth/​Strategic Metals Index at the December quarterly rebalance. AVZ will join the index along with Ioneer Ltd (ASX: INR) on 17 December. Ioneer shares are up 17% today.

Brickworks Limited (ASX: BKW)

The Brickworks share price is up 3% to $24.54. This follows the release of first half earnings guidance for its Property business. According to the release, management expects to report record Property EBIT in the range $290 million to $310 million for the half. This compares very favourably to Property EBIT of $253 million in the whole of FY 2021.

Charter Hall Group (ASX: CHC)

The Charter Hall share price is up 5.5% to $20.83. Investors have been buying this property company’s shares after it upgraded its earnings guidance for FY 2022 once again. Thanks to a net valuation uplift of ~$3.5 billion for its property portfolio, Charter Hall now expects FY 2022 operating earnings per share of ~105 cents. This is up from its previously upgraded guidance of 83 cents per share.

Senex Energy Ltd (ASX: SXY)

The Senex share price is up 3% to $4.58. This follows news that it has agreed to be acquired by Korean giant POSCO for $4.60 per share. This takeover offer values Senex at approximately $852 million. In addition, Senex intends to pay shareholders a dividend of up to 5 cents per share as part of the agreement.

The post Why AVZ, Brickworks, Charter Hall, and Senex shares are storming higher appeared first on The Motley Fool Australia.

More reading

• Brickworks (ASX: BKW) share price lifts 3% on record forecast property earnings
• Charter Hall (ASX:CHC) share price pops 5% to record high on earnings upgrade
• ASX 200 (ASX:XJO) midday update: CSL acquisition talks, Charter Hall guidance upgrade
• Senex share price (ASX:SXY) lifts on new $852 million acquisition deal
• Why are AVZ (ASX:AVZ) and Ioneer (ASX:INR) shares rocketing higher?

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 Brickworks. The Motley Fool Australia owns and has recommended Brickworks. 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 Orica Ltd (ASX: ORI) share price is edging lower today following the company announcing an asset sale. Earlier, the company’s shares were unfazed and were slightly in the green. But, the share price has since dipped into negative territory.

At the time of writing, the commercial explosives company’s shares are fetching for $13.88 down 0.14%.

Orica divests Minova business

Investors appeared to be unconcerned by the company’s latest news, sending the Orica share price drifting.

In its release, Orica advised it has entered into an agreement to sell its Minova ground control business to Aurelius Group.

Founded in 2005, Aurelius is a European-based investment firm that specialises in taking over small-to-medium sized companies. The long-term oriented private equity investor identifies potential opportunities and then develops the assets.

Aurelius has offices in Munich, London, Stockholm, Madrid, Amsterdam, Milan and Luxembourg.

On the other hand, Minova provides ground support products for the mining, construction and energy sectors. Orica originally acquired the business in 2006 and before restructuring in 2016.

Under the deal, Orica will receive $180 million for the Minova business. However, this is subject to regulatory approvals and other customary closing conditions

If satisfied, the transaction is expected to close sometime within the first quarter of the 2022 calendar year.

Orica managing director and CEO, Sanjeev Gandhi said:

The sale of Minova is consistent with our refreshed strategy, which identified Minova as non-core to Orica. This allows us to focus on our four key business verticals of growth – mining; quarry and construction; digital; and mining chemicals.

The Minova business will benefit from new ownership with more focus and capital to support its growth.

Orica share price snapshot

Looking at the past 12 months, the Orica share price is down 11%. The company’s shares took a 20% dive earlier this year in February following a shock CEO succession. However, Orica shares quickly rebounded before moving into a horizontal channel for the majority of 2021.

Based on today’s price, Orica commands a market capitalisation of roughly $5.66 billion and has approximately 407.52 million shares outstanding.

The post Orica (ASX:ORI) share price edges lower following $180m asset sale appeared first on The Motley Fool Australia.

More reading

• What might trading volume tell us about the potential of an ASX share?
• Why is the Queensland Pacific Metals (ASX:QPM) share price in limbo today?
• Leading brokers name 3 ASX shares to buy today
• Here’s why the Neometals (ASX:NMT) share price is surging 6% today
• Johns Lyng (ASX:JLG) shares surge 19% out of trading halt. Here’s why

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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Of all the common metrics that investors like to look at in an ASX share, trading volume is perhaps one of the most intriguing. An ASX share can have high trading volume when it is being bid up, or heavily sold off. It can have high volumes when its share price makes a dramatic move, or if it stays flat.

All in all, it can tell us a whole lot, or not much, or anything you want it to really. That’s why, here at the Fool, we like to take a glance at the ASX shares being most actively traded on the S&P/ASX 200 Index (ASX: XJO) most days. We try to decipher the tea leaves about what it all really means.

What can ASX investors get out of trading volume?

But a recent article from Switzer Daily’s Michael Gable goes into a bit more depth about the potential uses of trading volume. It makes for some interesting reading. Here’s some of what he had to say on how to use trading volume to your potential advantage:

...you make money when stock prices are going up. This means that you want to be holding a stock when it is in an uptrend…

In an uptrend, I also like to observe the timing of the moves and the volume to get a feel for how strong the trend is. When it comes to the timing of moves, I like to see that the time taken to cover a certain amount of ground in a rally is less than the time taken for a stock to retrace the same amount during a pullback. 

For example, if a stock tends to move up about $1 in a few days, but then it takes it a few weeks to fall only 50c, then logically it is telling us that the bulls are in control and the selling pressure is weak. The rallies will often be done on high volume and the declines will be done on lower volume. This difference in volume is also an indication that there is strong buying pressure. 

So this advice might not be, or apply, for everyone. But it certainly shows how an expert investor like Gable looks at the trading volume metrics and uses them to obtain an edge. So next time you see a trading volume metric for an ASX share you may be interested in, it may hold some additional meaning.

The post What might trading volume tell us about the potential of an ASX share? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL acquisition talks, Charter Hall guidance upgrade
• 5 things to watch on the ASX 200 on Monday
• Are these 2 leading ASX 200 shares worth buying?
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week

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 Bruce Jackson.

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The Queensland Pacific Metals Ltd (ASX: QPM) share price has been put in the freezer today as the company prepares to release news of a capital raise.

The company’s stock is expected to resume trading on Wednesday morning unless Queensland Pacific Metals makes its announcement earlier.

At the time of writing, the Queensland Pacific Metals share price is frozen at 17.5 cents a share.

Let’s take a closer look at what the critical metals producer has been up to lately.

Queensland Pacific Metals share price halted amid another capital raise

There’s been a bit of recent news surrounding Queensland Pacific Metals’ finances.

Last month, the company announced it had received interest in funding its TECH Project from 4 export credit agencies and development finance institutions and 9 Australian banks and international commercial banks.

The TECH Project will be a processing plant creating critical chemicals for the lithium-ion and electric vehicle market.

The project will be located near Townsville and process New Caledonian nickel laterite ore. It will see the company creating nickel-cobalt mixed hydroxide precipitate, aluminium hydroxide, high purity hematite, and magnesium oxide.

It’s also only been around 9 months since the company last underwent a placement.

In March, Queensland Pacific Metals completed a $15 million placement, which it followed with a share purchase plan, raising more than $5.7 million. That capital raise saw the company offering new shares for 8 cents apiece.

Additionally, as of September 30, the company had more than $30 million of cash and cash equivalents in the bank.

Right now, the Queensland Pacific Metals share price is 430% higher than it was at the start of 2021. However, it has fallen more than 25% over the last 30 days.

All eyes will be on the company’s stock to find out how much capital it’s raising and what it intends to do with it.

The post Why is the Queensland Pacific Metals (ASX:QPM) share price in limbo today? appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Here’s why the Neometals (ASX:NMT) share price is surging 6% today
• Johns Lyng (ASX:JLG) shares surge 19% out of trading halt. Here’s why
• Osteopore (ASX:OSX) share price rockets 24% on major new deal
• Why are ASX ETFs getting so much attention today?

Motley Fool contributor Brooke Cooper 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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

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

Ramsay Health Care Limited (ASX: RHC)

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $74.00 price target on this private healthcare operator’s shares. Goldman notes that Ramsay has signed an agreement to acquire UK based mental health services provider Elysium for $1.4 billion. The broker highlights that the transaction fits with Ramsay’s stated focus on mental health. Outside this, Goldman believes Ramsay is one of the more attractive recovery trades across its coverage. The Ramsay share price is trading at $68.54 on Monday.

Santos Ltd (ASX: STO)

A note out of Ord Minnett reveals that its analysts have retained their buy rating and lifted their price target on this energy producer’s shares to $8.45. This follows its merger with Oil Search, which became effective late last week. Ord Minnett is a fan of the merger and sees a lot of value in the Santos share price at the current level after reworking its valuation model to incorporate the Oil Search business. The Santos share price is fetching $6.60 on Monday afternoon.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Citi have retained their buy rating and $13.80 price target on this wine company’s shares. According to the note, the broker was pleased to see US rival Duckhorn Portfolio recently release a strong first quarter update. Citi feels this points to strong demand for luxury wine from consumers in the key US market, which has positive implications for Treasury Wine’s performance. The Treasury Wine share price is trading at $12.07 this afternoon.

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

More reading

• What’s the outlook for ASX healthcare shares in 2022?
• Ramsay (ASX:RHC) share price lower after announcing $1.4bn Elysium acquisition
• $22 billion of newly merged Santos shares are fronting the ASX this morning. Here’s what you need to know
• 5 things to watch on the ASX 200 on Monday
• Morgans names 2 ASX 200 shares to buy

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited and Treasury Wine Estates 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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Shares in Neometals Ltd (ASX: NMT) are catching bids today and now trade 6.22% higher at $1.11 apiece.

Investors are driving up the Neometals share price following a company announcement on a new commercial agreement with a Portugal-based chemical company. Here are the details.

What did Neometals announce?

Neometals advised that its co-owned company, Reed Advanced Materials Pty Ltd, has entered into a binding co-operation agreement with Portugal’s largest chemical producer, Bondalti Chemical.

Reed, a holding company that is 70% owned by Neometals with the remaining 30% claimed by Mineral Resources Limited (ASX: MIN), is also the holding company for the ELi processing technology.

Neometals says that ELi replaces conventional, carbon-intensive chemical conversion of lithium chloride solutions with electrolysis to produce lithium chemicals, potentially utilising renewable energy.

ELi substantially reduces the requirement and transport of reagents. This presents the opportunity to improve sustainability, operating and capital costs for both spodumene and brine lithium projects.

To date, the process has successfully produced battery quality lithium hydroxide from operating spodumene and brine operations, according to the announcement.

The company has agreed to terms with Bondalti to evaluate commercialisation of its ELi lithium process in Europe. A proposed 25,000 tonne-per-annum (tpa) lithium refinery in Portugal will be the first ELi deployment to produce battery-quality lithium hydroxide and lithium carbonate, per the release.

Under the agreement, Bondalti and Reed will co-fund construction and operation of a pilot plant in Portugal. The companies will complete evaluation studies over 18 months at a shared cost of US$4 million.

The pilot plant and proposed commercial refinery will be integrated with Bondalti’s existing chlor-alkali operations,
which share “significant processing commonalities with the ELi process.”

If the agreement plus ongoing feasibility and evaluation studies are successful, the parties may establish a new entity called JVCo. Reed would then provide JVCo with a royalty-free licence to use the ELi process in the refinery operation.

Management commentary

Speaking on the announcement, managing director of Neometals Chris Reed said:

We are eager to take another step towards commercialising our ELi® process and building a globally competitive, high purity ‘battery quality’ lithium chemical facility. Bondalti is a highly credentialed chemical producer and operator of chlor-alkali facilities which use electrolysis to produce sodium hydroxide. Moreover, Bondalti’s existing by-product hydrogen and chlorine gases provide a ready market for the by-products of the ELi® process.

Reed added:

The synergies of first-class technical skills and infrastructure at Estarreja maximise the probability of technical success in the full scale pilot plant trials and enhance the potential financial metrics of its first commercial application. This is another demonstration of our ability to secure strong operating partners to co-fund the commercialisation of our project pipeline. The co-operation is an exciting milestone for Neometals and its ELi co-owner, Mineral Resources Ltd, who have been steadfast supporters of this potentially game-changing technology since its genesis in 2012.

Neometals share price snapshot

In the past 12 months the Neometals share price has soared over 436%. It has rallied 328% just this year to date.

It has reversed course in the past month, however, and is 1.32% down in that time. Furthermore, it has slid another 4% in the last week of trading.

The post Here’s why the Neometals (ASX:NMT) share price is surging 6% today appeared first on The Motley Fool Australia.

More reading

• Minerals Resources (ASX:MIN) share price wobbles on lithium agreement
• The Neometals (ASX:NMT) share price is up 350% in a year and this fund manager says there’s more to come
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The author has no positions 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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Johns Lyng Group Ltd (ASX: JLG) shares are rocketing in early afternoon trade, up 19% to $8.52 per share.

This comes as the integrated building services company exits the ASX trading halt it entered last week on Tuesday 7 December.

Below we take a look at the company’s capital raising announcement that looks to be spurring ASX investor interest.

What capital raising announcement was reported?

Johns Lyng shares are charging higher after the company reported it had completed the institutional component of its equity raising.

The institutional placement and institutional entitlement offer together raised a combined $221 million.

According to the release, the capital raised will be used to fund the acquisition of Reconstruction Experts and to ensure Johns Lyng and Reconstruction Experts “maintain financial flexibility to fund their near-term growth initiatives”.

96% of eligible institutional shareholders took part in the institutional entitlement offer. This raised $34 million with new Johns Lyng shares priced at $6.80.

The fully underwritten placement raised the remaining $187.5 million. New shares were issued via a variable price bookbuild, and with strong demand, cleared at the top of the range at $7 per share.

A total of 26.8 million new shares will be issued under the placement. The company expects settlement to occur Monday 20 December, with the issue of those new shares to occur the following day, when shares are also expected to commence ordinary trading.

Commenting on the equity raising, Johns Lyng’s CEO, Scott Didier said:

We believe the Reconstruction Experts acquisition is the perfect fit for us to unlock the US market. The existing management are extremely motivated and excited to join our partnership model and the business represents exciting growth opportunities. The recognition and support of investors through the institutional component of the equity raising signals a clear endorsement from the market of our strategy.

Shareholder approval is not required with the issue of the new shares under the placement.

Johns Lyng shares could also be getting a boost today from the company’s announcement that retail shareholders “who have a registered address in Australia or New Zealand as at 7 pm” today can participate in the entitlement offer at the same offer price as under the institutional entitlement offer.

The retail entitlement offer opens this Wednesday and closes at 5 pm on Thursday 30 December.

How have Johns Lyng shares been performing?

Johns Lyng shares are up a whopping 162% in 2021. That trounces the 11% year-to-date gains posted by the All Ordinaries Index (ASX: XAO).

Over the past month, the Johns Lyng share price is up 20%.

The post Johns Lyng (ASX:JLG) shares surge 19% out of trading halt. Here’s why appeared first on The Motley Fool Australia.

More reading

• Johns Lyng (ASX:JLG) share price in focus amid capital raise and major US acquisition
• What’s going on with the Johns Lyng (ASX:JLG) share price today?

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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