On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week.

On the flip side, today we look at a few shares that have just been given sell ratings by brokers. Here’s why they are bearish on these ASX shares:

Charter Hall Retail REIT (ASX: CQR)

According to a note out of Morgan Stanley, its analysts have downgraded this REIT’s shares to an underweight rating with a $4.05 price target. The broker made the move on the belief that smaller Australian retail REITs with regional exposure could underperform in the next 12 to 18 months. This is based on the normalisation of trade post-COVID and the softening of regional migration growth as people return to urban areas. The Charter Hall Retail REIT share price is trading at $4.29 on Thursday.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Citi reveals that its analysts have retained their sell rating and $94.50 price target on this banking giant’s shares. The broker believes CBA’s shares are fully value given slowing growth in mortgage lending and strong competition. Citi also believes the bank’s expenses will increase quicker than income and notes that its weak position in business banking means it will miss out on stronger trading conditions at that side of banking. The CBA share price is trading at $96.03 today.

TechnologyOne Ltd (ASX: TNE)

Analysts at Macquarie have downgraded this enterprise software company’s shares to an underperform rating but with an improved price target of $11.00. This follows the release of the company’s full year results. While the broker has increased its earnings estimates for the coming years, it isn’t enough for a more positive rating. Macquarie believes TechnologyOne’s shares are expensive in comparison to peers. The TechnologyOne share price is fetching $11.92 on Thursday.

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

More reading

• Macquarie (ASX:MQG) is now a big four bank
• Why Bapcor, Mayne Pharma, Race Oncology, and TechnologyOne shares are sinking
• Why is the Technology One (ASX:TNE) share price tumbling 9% today?
• Is the TechnologyOne (ASX:TNE) share price a buy after its results?
• Is the CBA (ASX:CBA) share price premium relative to other big banks justified?

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

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The Global Lithium Resources Ltd (ASX: GL1) share price is continuing to decline today. This comes amid the company announcing positive lithium assay results.

At the time of writing, the lithium explorer’s shares are swapping hands for 60 cents apiece, down 6.98%. This means that over the last two days, its shares have fallen by around 13%, almost erasing the 15% gains made on Tuesday.

Global Lithium points to significant extension opportunity

The Global Lithium share price is sinking today after accelerating in value by more than 40% in the past month alone.

In this morning’s release, Global Lithium announced it has received significant lithium assay results from its ongoing CY4Q Exploration Program at the Marble Bar Lithium Project (MBLP).

The site is located around 150 kilometres southeast of Port Hedland in the Pilbara Region of Western Australia. MBLP is situated close to major roads, with direct links into Port Hedland for shipping bulk commodities, including spodumene concentrate.

Global Lithium has a 100% controlling interest in MBLP.

The first 14 reverse circulation (RC) holes, totalling 1,770 metres of drilling, returned strong spodumene lithium results. This highlights multiple lithium intersections lay within MBLP and validates potentially developing the area and extending the Archer deposit.

The assay results included the following:

• 14 metres at 1.14% of lithium oxide (Li2O) and 44 parts per million (ppm) of tantalum pentoxide (Ta2O5) from 11 metres in drillhole MBRC0181;
• 8 metres at 0.97% Li2O and 53 ppm Ta2O5 from 51 metres in drillhole MBRC0182;
• 12 metres at 0.64% Li2O and 50ppm Ta2O5 from 54 metres in drillhole MBRC0177; and
• 4 metres at 1.55% Li2O and 70ppm Ta2O5 from 37 metres in drillhole MBRC0174.

The company noted the CY4Q RC drilling program has completed 74 holes for 7,995 metres to 23 November. The majority of samples that have been sent to the laboratory are yet to be assayed.

RC drilling is planned to run until early December, with the remaining assays expected in the first quarter of 2022.

What did management say?

Global Lithium managing director Jamie Wright commented:

Our drilling earlier in 2021 and our subsequent targeting all suggested that the Marble Bar Road reserve offered significant exploration potential. We have been excited by what we have been seeing in this area and these initial assays clearly demonstrate the growth potential of the MBLP.

Whilst only a small portion of assays have been received to date, the results we are seeing are very encouraging. The initial assay results, combined with the discovery of a new pegmatite zone within the road reserve so close to Archer, certainly highlights the underexplored nature of the MBLP.

Global Lithium share price summary

Despite falling the last two days, Global Lithium shares have surged around 200% since listing on the ASX in May.

Its shares reached an all-time high of 81 cents earlier this month, before treading lower in the last few weeks.

Global Lithium presides a market capitalisation of roughly $64.16 million and has more than 108.75 million shares on its books.

The post Here’s why the Global Lithium (ASX:GL1) share price is falling 7% today appeared first on The Motley Fool Australia.

More reading

• Global Lithium (ASX:GL1) share price explodes 34% higher on capital raising update
• Here’s why the Global Lithium (ASX:GL1) share price rocketed 15% before a trading halt

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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Shares in Creso Pharma Ltd (ASX: CPH) continue to take a battering today. At the time of writing, shares in the cannabinoid company are down 7% at 9.3 cents, having come off a 3-month high of 15 cents just 2 weeks earlier.

Investors are punishing Creso on the back of its chairman’s probe from ASIC. Today the company notes that on 22 November 2021, it was served with a notice by ASIC requiring it to produce certain documents in connection with an investigation.

Just a week earlier, when the scandal unfolded, Creso advised that it hadn’t been served any papers from ASIC at the time.

Let’s see what’s changed.

What’s Creso Pharma caught up in?

The watchdog’s notice “identified for the first time that ASIC’s investigation includes suspected contraventions by the Company, its officers, agents, employees and representatives in relation to trading in its securities”, Creso says.

Creso stresses that “it should not be construed as an indication by ASIC that a contravention of the law has occurred, nor should it be considered a reflection upon any person or entity”, as reported by ASIC itself.

The company became involved in ASIC’s investigation because of “common directorships” of its chairman Adam Blumenthal, who is also a director at EverBlu Capital.

Blumenthal has today stood aside from his role as chairman of Creso Pharma, to distance its “operations and governance from the ASIC investigation”.

Another executive director, Dr James Ellingford, will jump in as interim chairman of the company until a solution is arrived at. The board has also has established a standalone subcommittee to help assist with the investigation.

Investors continue driving in the pain following the announcement, with the selling pressure on Creso’s share price occurring at a volume of 90% of its 4-week trading volume.

What’s the impact going forward?

According to Creso, not much. It reckons it has taken the necessary steps to comply with the matter and has offered its assistance in the investigation.

Hence, it is business as usual for the cannabinoid player, according to the release. Commenting specifically on its impact, the company added:

Importantly, the existence of the ASIC investigation does not impact on Creso Pharma’s ability to continue to operate efficiently. The Company notes that its key business operations in Canada and Switzerland are each managed by in-country senior executives who have been quarantined from this matter and, as such, those operations remain unaffected and are operating as usual. The Company appreciates and is grateful for the continued support of all of its stakeholders.

Investors have been leaving the Creso Pharma party for the last 2 weeks since the news was announced. In the last week alone, shares have lost another 15%, and are now down 48% since January 1.

Despite the turbulence, Creso shares are still up 200% for the year.

The post Creso Pharma (ASX:CPH) share price down 7% as chair stands aside amid ASIC probe appeared first on The Motley Fool Australia.

More reading

• Why the Creso Pharma (ASX:CPH) share price is down 29% this week
• Creso Pharma (ASX:CPH) share price down 6% after speeding ticket
• Why the Creso Pharma (ASX:CPH) share price fell 9% before freezing
• Creso Pharma (ASX:CPH) share price climbs on increasing revenue update
• These were the best performing ASX cannabis shares in October

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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The South32 Ltd (ASX: S32) share price is edging higher on Thursday following its latest update.

In afternoon trade, shares in the diversified mining and metals company are up 0.98% to $3.59 apiece. This comes after a positive step forward in the company’s endeavours to acquire a 45% stake in the Sierra Gorda copper mine in Chile.

Let’s take a look at what it means for the ASX-listed mining giant.

Copper go-ahead gives South32 share price a push

Investors are snapping up shares in Australia’s sixth-largest listed mining company today. The enthusiasm likely stems from South32’s Sierra Gorda transaction update released to the market this morning.

According to the release, KGHM Polska Miedz (KGHM) has advised it will not exercise its pre-emptive rights to increase its shareholding in the Sierra Gorda mine.

KGHM is a Polish mining company that owns the other 55% portion of Sierra Gorda. The decision means South32 can proceed with acquiring its full 45% stake as originally intended. In turn, investors are looking upon the South32 share price fondly today.

Furthermore, South32 expects completion of the transaction to occur early in the 2022 calendar year. As per the original announcement, the copper mine acquisition comes with a price tag of US$1.55 billion (A$2.15 billion). Another US$500 million will be made available dependent on copper production rates between 2022 and 2025.

The acquisition comes at an opportune time, with experts forecasting long-term copper supply constraints. For reference, Sierra Gorda is expected to produce 180kt of copper in 2021 on a 100% basis, alongside other metals.

Analysts’ take

South32’s expansion into copper, further diversifying its operations, has caught the eye of analysts. For instance, analysts at Goldman Sachs are bullish on the company and its potential to generate significant free cash flow in the future.

Currently, the broker holds a conviction ‘buy’ rating and a $4.40 price target on the South32 share price.

The post South32 (ASX:S32) share price climbs as $2bn copper mine stake gets green light appeared first on The Motley Fool Australia.

More reading

• Investing for the future: why this fundie is optimistic on copper shares
• Why these ASX 200 shares could be strong buys
• These 3 ASX 200 shares are topping the volume charts this Friday
• 4 reasons the South32 (ASX:S32) share price could be a strong buy
• These 3 ASX 200 shares topped the volume charts on Thursday

Motley Fool contributor Mitchell Lawler 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 Piedmont Lithium Inc (ASX: PLL) share price has been volatile over the last 7 days, ultimately falling around 3% lower.

Additionally, despite all its ups and downs, the company’s stock is seemingly trending sideways. It has only gained 3% over the past month and just 1.5% over the past 6 months.

At the time of writing, the Piedmont Lithium share price is 82.2 cents, 0.96% lower than its previous closing price.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.06%, while the All Ordinaries Index (ASX: XAO) is flat.

Let’s take a look at all the news released by the United States-based lithium business over the last few months.

What’s driven the Piedmont Lithium share price lately?

The latest news to boost Piedmont Lithium’s stock’s value was released on 22 October.

Then, the company announced it had upped its Carolina Lithium Project’s mineral resource estimate to 44.2 tonnes at 1.08% lithium oxide. Some 64% of the total mineral resource estimate was in the project’s ‘indicated’ category.

Despite the seemingly positive news, the Piedmont Lithium share price slid 1.2% on the back of the update.

The market has also been treated to news of the acquisition of the North American Lithium mine. Sayona Quebec – which is 25% owned by Piedmont Lithium and 75% by Sayona Mining Ltd (ASX: SYA) – acquired North American Lithium on 30 August.

On 13 September, Sayona Mining announced it’s eyeing a potential resource increase at North America Lithium.

The announcements saw Piedmont Lithium’s stock boosted 8% and 1.3% respectively.

The final news the market has heard from Piedmont Lithium in the last few months was released on 1 September. Then, Piedmont announced it had acquired a 9.9% hold in IronRidge Resources Ltd.

The investment follows numerous agreements that could see Piedmont Lithium with a 50% hold in IronRidge’s lithium portfolio and 50% of the production of IronRidge’s Ewoyaa Project.

The market responded poorly to Piedmont Lithium’s investment, bidding its share price 1.2% lower.

Despite a tough 6 months, Peidmont’s stock is still 123% higher than it was at the start of 2021.

The post Why is the Piedmont Lithium (ASX:PLL) share price struggling of late? appeared first on The Motley Fool Australia.

More reading

• Why ASX lithium shares are surging higher on Tuesday

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

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The All Ordinaries Index (ASX: XAO) is having a rather bumpy day so far this Thursday. At the time of writing, the All Ords is up by 0.02% to 7,727 points after stints in both positive and negative territory today. But one All Ords ASX share is putting the index to shame so far today. That would be the Novonix Ltd (ASX: NVX) share price. 

Novonix shares are currently up a very pleasing 11.57% to $10.70 apiece. Not only that, they hit $10.74 earlier this morning, which is a new all-time high for this company.

So what’s going on with Novonix today that could be eliciting this excitement?

Well, unfortunately, it’s not quite clear. There have been no price-sensitive announcements out of Novonix recently. The company did release a statement yesterday morning during intra-day trading. This outlined Novonix’s opening of a new facility in Chattanooga, in the US state of Tennessee. The company said this new facility would “produce the high purity and high consistency anode material required for long-life batteries, specifically for electric vehicles and similar storage application”.

But seeing as this news became public yesterday, it’s a long bow to link it to today’s share price moves. In fact, Novonix shares dipped close to 1% yesterday by market close.

Novonix share price shoots the moon

So let’s look at how Novonix’s sector peers are performing today so far.

Novonix is an ASX materials share. The company is a developer and supplier of materials, services, and equipment for the lithium-ion battery industry. We are seeing other players in the battery and lithium spaces also enjoying some outsized gains today.

For instance, lithium producers Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) are also enjoying strong performances. Pilbara shares are up a healthy 3.36% at $2.62 apiece at the time of writing (a new all-time high). And Orocobre shares are up a more modest 1.44% at $9.84.

But another thing to remember is that this move, while certainly dramatic, isn’t exactly out of character for Novonix. This is a company that is now up 66% in just the past month and up an extraordinary 763% year to date.

As my Fool colleague Brooke covered earlier in the month, the catalyst for these longer gains appears to be the company’s most recent quarterly activities and cash-flow update. As well as news that the US company Phillips 66 (NYSE: PSX) had made a strategic investment in Novonix.

Today’s moves could well be an extension of this recent run of stellar investor sentiment. Or perhaps a large or institutional investor has made an investment. Whatever the reason, today’s moves are just the latest feather in the Novonix share price cap, it seems.

At the current Novonix share price, this company has a market capitalisation of $4.62 billion.

The post Why is the Novonix (ASX:NVX) share price surging 11% to an all-time high today? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• The Novonix (ASX:NVX) share price tumbled 14% today. What’s going on?
• Up 64% in a month, here’s why the Novonix (ASX:NVX) share price is supercharging right now
• Here are the top 10 ASX shares today
• The market had a lousy day. So why did the Novonix (ASX: NVX) share price leap 4%?

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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Thursday is proving to be a great day for the Ecograf Ltd (ASX: EGR) share price after the company announced that it’s writing up an offtake agreement.

Ecograf has entered a memorandum of understanding with South Korean multinational industrial company POSCO International. The agreement will see Ecograf selling its HFfree battery anode material products to POSCO International.

The companies intend to sign a formal offtake agreement following their understanding.

At the time of writing, the Ecograf share price is 82.5 cents, 28.91% higher than its previous close.

Let’s take a look at today’s news from the battery anode material business.

Ecograf share price surges on Thursday

Ecograf’s stock is surging higher on the back of a planned offtake agreement for the products of its upcoming Australian Battery Anode Material facility and its planned facility in Europe.

By supplying POSCO International with its HFfree battery anode material products, Ecograf will be supporting POSCO’s anode production expansion plans.

According to Ecograf, POSCO International is a key subsidiary of Korean steel maker POSCO Group.

POSCO International has an international network made up of more than 80 subsidiaries. It uses its position to establish value chains in various sectors including steel, energy, machinery parts, and infrastructure. 

On top of the offtake agreement, Ecograf and POSCO International will look for other opportunities to work together on product development, battery anode recycling, and EcoGraf’s battery anode material business’ development.

Ecograf is working to build its first battery anode materials facility in Perth. It will focus on exporting battery anode material products to Asian, European, and North American anode, lithium-ion battery, and electric vehicle markets.

Additionally, Ecograf announced it has signed a land reservation agreement for an industrial site in Sweden in August. There, it’s planning to build another battery anode facility.

Right now, the Ecograf share price is 385% higher than it was at the start of 2021.

The post Ecograf (ASX:EGR) share price launches 29% on battery material deal appeared first on The Motley Fool Australia.

More reading

• Why has the Betashares Crypto Innovators ETF (ASX:CRYP) lost 12% in 10 days?
• Why Adairs, EML, Fisher & Paykel Healthcare, and NRW are storming higher
• Talga (ASX:TLG) share price leaps 7% on EV anode facility update
• Green light: NAB (ASX:NAB) share price slips as ACCC gives nod to Citi deal
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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 Betashares Crypto Innovators ETF (ASX: CRYP) launched with record success on 4 November.

The exchange-traded fund (ETF) reported $8 million worth of trades within the first 15 minutes of the opening bell.

By the end of the day, CRYP had set new all-time highs for a managed investment on the ASX, finishing its first day with net buys of $39.7 million.

Within 4 trading days, the CRYP share price had gained 11%.

But over the last 10 days, things have gone the other way, with the ETF sliding 12% at the time of writing. That’s despite a 2% intraday gain today.

So, what’s going on?

Why is CRYP down 12% in 10 days?

There look to be 2 interrelated reasons for CRYP’s retracing share price.

First, the price of the world’s top two cryptocurrencies has taken a tumble.

Ten days ago, Bitcoin (CRYPTO: BTC) was trading for US$65,961 (AU$91,611). Today it’s worth US$58,163, down some 12%, according to data from CoinMarketCap.

The world’s No. 2 token by market valuation, Ethereum (CRYPTO: ETH), has also lost ground. Over 10 days Ether has dropped from US$4,725 to US$4,316, down approximately 9%.

That’s the underlying price pressure for CRYP.

What else is seeing the ETF come under pressure?

CRYP doesn’t invest directly in Bitcoin, Ethereum, or any other altcoins.

Instead, the ETF “aims to track the performance of an index (before fees and expenses) that provides exposure to global companies at the forefront of the dynamic crypto-economy”, according to BetaShares.

CRYP currently has 32 holdings. Its top 5 holdings as of this morning are:

1. Silvergate Capital Corp (12.3%)
2. Galaxy Digital Holdings Ltd (11.6%)
3. Marathon Digital Holdings Inc (10.5%)
4. Coinbase Global Inc (10.0%)
5. Microstrategy Incorporated (8.6%)

And with the exception of Silvergate, which has seen its share price gain 1% since the closing bell on 12 November, all the other shares are well down.

Galaxy’s share price is down 16% in that time; Marathon’s shares have lost 31%; Coinbase is down 9%, and the Microstrategy share price has slipped 14%.

There will be various reasons for these companies coming under pressure. But the recent losses in the big cryptos are certainly a hefty headwind. And the combination looks to be dragging on the CRYP share price.

The post Why has the Betashares Crypto Innovators ETF (ASX:CRYP) lost 12% in 10 days? appeared first on The Motley Fool Australia.

More reading

• Are there more crypto ETFs coming to the ASX in the future?
• Why was the new BetaShares Crypto Innovators ETF (ASX:CRYP) down 5% on Thursday?
• Here’s why the Betashares Crypto Innovators ETF (ASX:CRYP) share price is surging 7% today
• BetaShares Crypto Innovators ETF (ASX:CRYP) breaks opening day records…now what?
• The first crypto ETF (ASX:CRYP) has just hit the boards. Here’s what you should know

The Motley Fool Australia’s parent company The Motley Fool Holdings Inc. owns shares of and recommends 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down 0.1% to 7,393.1 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are storming higher:

Adairs Ltd (ASX: ADH)

The Adairs share price is up 5.5% to $3.61. Investors have been buying this homewares retailer’s shares after it announced the acquisition of furniture retailer Focus on Furniture for $80 million. Focus has 23 stores in Australia with revenue of more than $150 million in FY 2021. The release notes that the acquisition builds out Adairs’ product offering in the key area of home furniture and increases its exposure to that market by almost three times.

EML Payments Ltd (ASX: EML)

The EML Payments share price is up almost 26% to $3.46. This follows the release of an update on its dealings with the Central Bank of Ireland. The central bank has advised that it will allow EML’s PFS Card Services Ireland business to sign new customers and launch new programs. In addition, broad-based reductions in limit controls on programs will not be imposed. This appears to have eased concerns that the business could lose its licence to operate in Europe.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

The Fisher & Paykel Healthcare share price is up 3.5% to $32.00 following the release of its half year results. While the medical device company posted modest declines in operating revenue and net profit after tax, investors appear to have been expecting much worse. Especially given how it was cycling a period from a year ago when its sales were boosted materially by COVID-19 demand for respiratory devices.

NRW Holdings Limited (ASX: NWH)

The NRW share price is up 10% to $1.77 following the release of the mining services company’s annual general meeting update. At the event, management revealed that following a number of new contract wins, it is maintaining its earnings guidance with a higher degree of certainty. It is forecasting operating earnings before interest and tax of $145 million to $155 million in FY 2022. This is up from $120.6 million in FY 2021.

The post Why Adairs, EML, Fisher & Paykel Healthcare, and NRW are storming higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: EML rockets, NAB given ACCC green light
• EML (ASX:EML) share price rockets 17% on new programs green light from regulator
• ASX retail shares in focus as CBA forecasts bumper Black Friday weekend
• Here’s why the Adairs (ASX:ADH) share price is rocketing 8% this morning
• Fisher & Paykel Healthcare (ASX:FPH) share price higher on half year results

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 shares of and has recommended ADAIRS FPO and EML Payments. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO and EML Payments. 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 battery anode and advanced materials company Talga Group Ltd (ASX: TLG) are gaining ground today and are currently trading at 7.33% higher at $1.83.

The Talga share price is catching bids as investors respond positively to an announcement on its electric vehicle anode qualification (EVA) plant under construction in Sweden.

What did Talga announce?

Talga advised that the EVA plant is being constructed within the metals research institute, Swerim, located in Sweden. It will produce Talga’s flagship lithium-ion battery anode material, called Talnode-C, for large scale customer qualification trials.

The EVA uses “high grade purified natural graphite” sourced from Talga’s Vittangi graphite project, also in Sweden, to make the precursor material for Talnode-C.

It is understood to be the first lithium-ion battery anode production plant in Europe, according to the release.

Talga notes that on-site construction activities are now underway, whereas structural and electrical works are largely completed. Whilst international shipping delays have affected some delivery dates, Talga doesn’t expect any negative impact to its timeline.

Further batches of the precursor material will be made using graphite from a 2021-22 trial mine that completed its first phase of development in October 2021. The first batch of this “trial mined graphite feed concentrate” has been produced and stored for the plant’s commissioning.

Commenting on the plant update, Talga Managing Director Mark Thompson said:

The EVA plant is a key step in Talga’s mission to enable the world’s greenest batteries and represents real progress towards local decarbonisation strategies. We look forward to the commissioning of Europe’s first coated anode production facility and continued qualification of our Talnode® products with Li-ion battery manufacturers.

What else did Talga come out with?

The company followed up with an announcement on its Vittangi site. Talga reported it had received first assay results from a recent drilling program at the project.

Talga says that all drill-holes “successfully intersected the targeted graphite unit over approximately 100m of strike and returned significant high-grade graphite (Cg) results from near surface”.

Speaking on the assay results, Thompson said:

We are very pleased with the graphite results starting to come in from the 2021 drilling at Vittangi. The grades include some of the highest ever from the project, improving the potential to optimise the mine plan and upwardly revise ore reserves. This supports our goal of green anode production by further minimising the footprint of the project and is an exciting development in this time of rising graphite material prices. We look forward to further results from the balance of drilling and subsequent development of this strategically important resource for battery manufacturers in Europe.

The Talga share price has underperformed in the last 12 months, posting a loss of 7% in that time. Despite the troubles, it has regained course this year to date and is up 13% from January 1.

In the last month, it has come off a low of $.148 and closed as high as $2.20 on 9 November, before retracing back down to its current levels.

The post Talga (ASX:TLG) share price leaps 7% on EV anode facility update appeared first on The Motley Fool Australia.

More reading

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• Why the Talga (ASX:TLG) share price is charging 10% higher today

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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