The Tempus Resources Ltd (ASX: TMR) share price is higher today, currently trading up 5.56% at 19 cents each.

Tempus shares are on the move after the company announced a key drilling and exploration update on its Elizabeth Gold project in Canada.

Apparently, the company has intersected a “bonanza” gold target after completing its drilling program at the site.

Here are the details.

What was announced?

Tempus advised it had intersected a new bonanza gold discovery at its Elizabeth site via drill hole EZ-21-12.

The release notes the newly discovered gold vein, known as the “Blue Vein”, has now been extended with five additional intersections over a strike length of 380 metres.

Assays related to the Blue Vein discovery reported almost 34 grams of gold per tonne from 118 metres; 24.6 g/t gold at 0.5m from 131 metres; and 8.4 g/t gold over 0.5m from 164 metres.

This most recent drill hole marks a total of 26 holes drilled for 7,280 metres now completed at Elizabeth so far in 2021. There are still multiple assays pending on the results.

Currently, it has 12 assays awaiting results in the lab while results on the remaining 14 holes have been received in full.

The majority of drill holes have returned a positive result, with most of the holes drilled by Tempus “intersect[ing] gold vein structures” at the site.

Overall, the drilling program at the Elizabeth site is “focused on increasing the size and confidence of the historic inferred resource of around 206,39 ounces of gold”.

Tempus explains that drilling at the site is showing remarkable similarities to the “Bralorne-Pioneer mesothermal vein system, approximately 30km away”.

The Bralorne-Pioneer site was “mined to a depth of 2,000 metres and produced more than 4 million ounces over a period of more than 70 years, from 1900 to 1971”.

If there are similarities at the Elizabeth project, it appears to bode well for the Tempus share price.

Temps Resources share price snapshot

The Tempus Resources share price has struggled this year to date, having posted a loss of 22.5% since January 1.

This extends its loss over the last 12 months to 24%. Both results are well behind the benchmark S&P/ASX 200 Index (ASX: XJO)’s gain of around 21% in that time.

The post Tempus Resources (ASX:TMR) share price leaps 6% on new gold discovery appeared first on The Motley Fool Australia.

More reading

• What’s happening with the Tempus (ASX:TMR) share price this week?

The author Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/3bcK74d

S&P/ASX 200 Index (ASX: XJO) shares are, broadly, pulling the index higher today.

At time of writing the index is up 0.3%.

But it’s tech shares that are leading the way today.

Tech companies leading ASX 200 shares into the green

While ASX 200 shares are up 0.3%, the S&P/ASX 200 Info Tech (ASX:XIJ) is up 1.2% at this same time.

Leading the charge is buy now, pay later (BNPL) giant, Afterpay Ltd (ASX: APT). The Afterpay share price is up 3.6% to $126.97 per share.

Mining communications equipment and metal detector manufacturer Codan Ltd (ASX: CDA) is also performing strongly, up 2.7% to $13.35 per share.

Coming in at number 3 today is Megaport Ltd (ASX: MP1). Shares in the ASX 200 software-defined network service provider are up 2.4% to $17.96 per share.

Why are tech shares outperforming today?

ASX 200 shares in the technology sector look to be getting some tailwinds from strong performance in the United States tech markets.

The tech heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) closed up 0.9% yesterday (overnight Aussie time).

Social media front runner, Facebook, Inc. (NASDAQ: FB) closed up 1.3%. The Facebook share price is up another 1.8% in after hours trading.

Investors appeared pleased with Facebook’s third quarter (Q3) results, which saw the company commit to buying back some US$50 billion of shares. Q3 revenue also increased 35% to US$29 billion.

But the even bigger news, and bigger share price moves came from electric vehicle manufacturer, Tesla Inc (NASDAQ: TSLA). Tesla’s share price closed up a whopping 12.7%, valuing the company at more than US$1 trillion. That makes it the 5th largest listed company in the US.

The huge lift in the Tesla share price came after news that Hertz Global Holdings Inc (OTCMKTS: HTZZ) reported that it had ordered 100,000 Tesla cars.

How have ASX 200 shares been performing?

ASX 200 shares, as a whole, are having a strong year on the continuing recovery from the COVID pandemic  and rock bottom interest rates.

Year to date the index is up 11.6%, having reached an all-time high of 7,628.9 points on 13 August. Since hitting that high, the ASX 200 is down 2.3%.

The post Why ASX 200 tech shares are leading the charge higher today appeared first on The Motley Fool Australia.

More reading

• Why ASX lithium shares are surging higher on Tuesday
• Facebook (NASDAQ:FB) just announced a monster US$50 billion share buyback program
• Core Lithium (ASX:CXO) share price jumps as project construction begins
• Tesla stock price rally places it in the trillion-dollar club
• 2 ASX shares having a shocker that could be bargain buys right now

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its 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 shares of and has recommended AFTERPAY T FPO, Facebook, MEGAPORT FPO, and Tesla. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Facebook and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2XI4uTM

The Hazer Group Ltd (ASX: HZR) share price is rallying on Tuesday, up 8.71% to an almost 8-month high of $1.435.

Hazer is developing a low-emissions HAZER Process that can effectively convert natural gas and similar feedstocks into hydrogen and high-quality graphite for both vehicle fuel and energy applications.

Hydrogen ETF hits fresh all-time high overnight

Global X launched its Hydrogen Exchange Traded Fund (ETF) on 14 July when it closed at US$23.93 a piece.

The ETF slumped 16% to all-time lows of US$20.04 by 6 October, coinciding with the broader market selloff driven by factors such as the US debt ceiling, China’s Evergrande crisis, and concerns about rising interest rates.

The Hydrogen ETF has since surged almost 25% from October lows and 5.67% last night, closing at a fresh all-time high of US$24.97 last night.

The surging Hydrogen ETF could be a factor influencing the bullish performance of the Hazer share price on Tuesday.

About the Hydrogen ETF

The Hydrogen ETF invests in companies that “stand to benefit from the advancement of the global hydrogen industry”.

This includes companies engaged in hydrogen production, integration of hydrogen into energy systems, development of hydrogen fuel cells, and other related technologies.

Its top 3 holdings, which make up about 35% of its net assets, include:

• Hydrogen fuel cells developer Plug Power
• Developer and manufacturer of proton exchange membrane fuel cell products Ballard Power Systems
• Solid oxide fuel cell manufacturer Bloom Energy

Interestingly, Bloom Energy shares surged 37.2% overnight after the company signed a deal with South Korean industrial company SK Group.

Unfortunately, there are no ASX-listed hydrogen players within the ETF.

Hazer share price snapshot

The Hazer share price is up 75% year-to-date, with most of its gains taking place between January and early February.

After trading sideways for most of the year, the Hazer share price is climbing in October.

The post The Hazer (ASX:HZR) share price jumps 8% as hydrogen ETF hits all-time high appeared first on The Motley Fool Australia.

More reading

• Why the Hazer (ASX:HZR) share price is lifting today
• The Hydrogen ETF (ASX:HGEN) share price jumped 18% last week
• How fast is green hydrogen growing and which ASX shares could benefit?
• Here’s why ASX hydrogen shares are leaping higher today
• Why are ASX hydrogen shares in the spotlight on Monday?

Motley Fool contributor Kerry Sun 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.

from The Motley Fool Australia https://ift.tt/3BeLABC

The Alcidion Group Ltd (ASX: ALC) share price is in negative territory today following the company’s latest quarterly update.

During early afternoon trade, the healthcare technology company’s shares are down 4.17% to 34.5 cents.

How did Alcidion perform in the first quarter of FY22?

In its release, Alcidion advised it has continued to build on FY21’s momentum, leading into the new financial year. However, this has not been reflected in the Alcidion share price today.

For the 3 months ending 30 September (Q1 FY22), new contracted revenue surged to $17.2 million. This represents an increase of 17% over the prior corresponding period.

New contracted revenue grew $2.7 million in the quarter, defying what is historically known as the company’s slowest quarter.

The bulk of the contracted revenue came from recurring revenue ($12.2 million), with non-recurring revenue taking up the remaining portion.

Cash receipts totalled $6.6 million, an improvement of 2.3% compared to this time last year.

On the other hand, operating cash outflow stood at $3.4 million. The outgoings reflected a full quarter of new hires in the second half of FY21 coupled with staff bonuses and GST payments.

At the end of September, Alcidion declared a strong cash balance of $21.5 million.

Notably, a further $3.1 million in revenue has been achieved in the current quarter (Q2 FY22) by 3 significant contracts.

The first relates to a 3-year deal valued at $630,000 with Queen’s Hospital Burton in the United Kingdom. The agreement will see the deployment of ExtraMed’s Inpatient Flow Manager (IPFM).

The second is also a 3-year contract with Sydney Local Health District, worth around $1.8 million in total. This will see the use of Miya Precision in supporting virtual care, initially of acute diverticulitis patients.

And lastly, the third agreement is a $640,000, 3-year extension for ExtraMed’s IPFM Licence and support with Royal Derby Hospital in the UK.

It appears this news has not excited investors, with the Alcidion share price struggling to repeat its gains of yesterday.

Management commentary

Alcidion CEO Kate Quirke commented on the result:

Our pipeline continues to develop with several sizable opportunities now entering the contract negotiation stage which has provided a heightened optimism about the broader opportunity for Alcidion, particularly in the UK market. We are increasingly seeing the potential to cross and up-sell our products to existing customers.

We do however remain cognisant that COVID-19 continues to pose a challenge for healthcare providers worldwide resulting in longer lead times for contract completion.

Alcidion share price review

Although the Alcidion share price might be lower today, shareholders have recorded gains of almost 90% in 2021. When looking at the bigger picture, the last 12 months have seen its shares climb by almost 190%.

Alcidion has a market capitalisation of approximately $361.58 million, with more than 1.05 billion shares on issue.

The post Alcidion (ASX:ALC) share price dips 4% despite positive quarterly update appeared first on The Motley Fool Australia.

More reading

• 3 small cap ASX shares to watch
• Here’s why the Alcidion (ASX:ALC) share price is jumping 5% today
• Top ASX shares to buy in October 2021

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 shares of and has recommended Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2Zwoda3

The Creso Pharma Ltd (ASX: CPH) share price is gaining ground in early trading, currently up around 9% at 12 cents apiece.

Creso Pharma shares are on the move as the company released a prospectus today, amid an acquisition that was completed yesterday.

Here are the details out of the medicinal cannabis company’s corner today.

What was announced?

Creso released a ‘bonus issue prospectus’ relating to the issue of ‘bonus options’ to its shareholders which, it suggests, “should be considered as highly speculative”.

Specifically, the document proposes “a bonus issue of one [bonus] option for every three shares held by those eligible [Creso] shareholders registered at the record date”.

Creso will not receive or raise any funds for the offer, which begs the question – why offer the options in the first place?

The company gives a lengthy explanation of this. It states one purpose is to “reward shareholders for supporting the company”. If only more companies did the same.

However, it appears there is a more pertinent reasoning behind the bonus option issuance.

The options can, in fact, act as a potential source of funding for the company if they are exercised. Under the stipulations, Creso will receive 25 cents for each bonus option exercised, with a total of almost 642 million options on issue.

So, while no funds will be raised directly through the issue of the bonus options, if they are all exercised, the company will receive approximately $99.9 million.

That’s a substantial jump from the company’s cash balance of around $16 million recorded in its half-yearly report in August.

One other benefit of the options strategy is it removes any “trading restrictions attaching to shares issued on exercise of the bonus options issued”.

This effectively enables the option holders to trade the securities on any ASX market that allows options trading.

Building from half-yearly headwinds

As a result of its half-year financial performance to 30 June 2021, Creso incurred a substantial net loss and loss on cash flow from operations.

At the time, Creso disclosed there was a material uncertainty related to “events or conditions that may cast significant doubt upon the group’s ability to continue as a going concern”.

Hence, the company has pulled many strings these past few months to ensure it remains afloat and continues trading.

Measures to preserve cash and liquidity have now started to come through. As such, the board “continues to consider that the company will be able to continue” as a going concern.

It appears the company’s move today serves as prudent capital management and gives the company a liquidity buffer if earnings and/or cash levels take a dent.

The announcement also follows an acquisition announcement yesterday where the company is seeking to strengthen its existing business and diversify operations.

Creso purchased Canadian life sciences company ImpACTIVE which has expertise in CBD-based medicinal products.

It acquired the company on a scrip purchase of $217,000 in Creso shares, valued at 11 cents per share.

The deal widens Creso’s footprint in North America and also increases its CBD exposure in those markets.

Creso Pharma share price snapshot

The Creso Pharma share price has struggled this year to date, having posted a loss of 33.3% since January 1.

Despite this, it has still soared by more than 328% in the last 12 months. This return has outpaced the S&P/ASX 200 Index (ASX: XJO)’s climb of around 21% in that time.

The post Creso Pharma (ASX:CPH) share price spikes on bonus options issue appeared first on The Motley Fool Australia.

More reading

• Here’s why the Creso Pharma (ASX:CPH) share price is leaping 9% today
• Beaten up ASX cannabis shares showing signs of life
• Creso Pharma (ASX:CPH) share price struggles despite study update
• Creso Pharma (ASX:CPH) share price jumps on new deal

The author Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/3nthzJx

At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decline. The benchmark index is currently up 0.25% to 7,459.8 points.

Here’s what is happening on the ASX 200 on Tuesday:

Crown keeps Melbourne licence

The Crown Resorts Ltd (ASX: CWN) share price is storming higher today after revealing that it will not be stripped of its casino licence in Melbourne. Although the final report of the Royal Commission into Crown’s suitability to run Crown Melbourne found the company unfit, it did not recommend removing its casino licence. Instead, the report recommends Crown keep its casino licence under the close watch of a special manager.

Pilbara Minerals-POSCO joint venture

The Pilbara Minerals Ltd (ASX: PLS) share price is back from its trading halt and surging higher. This morning the lithium producer announced the formation of an incorporated joint venture with Korean giant POSCO. The joint venture will develop and operate a 43ktpa lithium hydroxide monohydrate (LHM) conversion facility in South Korea. Pilbara Minerals will initially hold an 18% stake in the joint venture but has opportunities to increase this to 30% in the future.

Ampol Q3 update

The Ampol Ltd (ASX: ALD) share price is edging higher today following the release of its third quarter update. For the three months ended 30 September, the fuel retailer reported a 76% increase in unaudited EBIT to $102 million. This was largely driven by an improved performance from its Lytton refinery, which offset earnings declines from its Convenience Retail (CR) business due to lockdowns.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Crown share price with a 9% gain. This follows the update on its Melbourne casino licence. The worst performer has been the Mineral Resources Limited (ASX: MIN) share price with a 7% decline following the release of its quarterly exploration and mining activities report.

The post ASX 200 (ASX:XJO) midday update: Crown and Pilbara Minerals surge higher appeared first on The Motley Fool Australia.

More reading

• Pilbara Minerals (ASX:PLS) share price jumps 8% on POSCO joint venture news
• Why ASX lithium shares are surging higher on Tuesday
• Crown (ASX:CWN) share price surges 9% as Victorian casino licence pronounced safe
• Ampol (ASX:ALD) share price higher following Q3 update
• 5 things to watch on the ASX 200 on Tuesday

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.

from The Motley Fool Australia https://ift.tt/3vGO4I0

The S&P/ASX 200 Index (ASX: XJO) is having another decent start to the day’s trading this Tuesday. At the time of writing, the ASX 200 is up a reasonable 0.38% to 7,469 points. But one ASX exchange-traded fund (ETF) is doing a whole lot better. That would be the ETFS Battery Tech & Lithium ETF (ASX: ACDC).

This ETF invests in “the energy storage and production megatrend, including companies involved in the supply chain and production for battery technology and lithium mining”.

And it’s doing well today. At the time of writing, ACDC units are currently up a solid 1.53% at $93.40 each. That’s a gain more than triple what the ASX 200 has given out.

So, let’s take a look at why this ETF might be jumping in value today.

What could be driving the ACDC performance today?

According to ETFS, ACDC’s largest underlying holding (as of 30 September) was Chinese electric vehicle and battery manufacturer BYD Co Ltd (OTCM: BYDDF), with a 5% weighting in the ETF.

Its second-largest holding is Pilbara Minerals Ltd (ASX: PLS), with a 4.7% weighting. Its third-largest stock was Livent Corp (NYSE: LTHM), with a 3.9% weighting.

Why is this relevant? Well, because last night (our time), BYD stock was up a healthy 5.38% to US$40.15 a share. Livent Corp shares also had a strong day, rising 2.34% to US$25.80 a share. And today on the ASX boards, Pilbara Minerals shares are presently up a very pleasing 6.7% at the time of writing to $2.23 a share.

So, we have ACDC’s three largest holdings all rallying between 2% and 6.7% over the past 24 hours. This is probably behind why this ETF is performing strongly on the ASX today.

But it hasn’t been all plain sailing for ACDC investors. While this ETF is having a strong day today, it’s still in the red by 0.7% over the past month, and up just 0.4% over the past 6 months.

In contrast, the ASX 200 is up 1.6% over the past month and up more than 6% over the past 6 months. Saying that, ACDC has managed to gain 43% over the past year, while the ASX 200 has only risen 21.34% over the same period.

The ETFS Battery Tech & Lithium ETF charges a management fee of 0.69% per annum.

The post Why is the ETFS Battery Tech & Lithium ETF (ASX:ACDC) rising in value today? appeared first on The Motley Fool Australia.

More reading

• Can you buy a lithium ETF on the ASX today?

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.

from The Motley Fool Australia https://ift.tt/2Zn0gSD

The Swoop Holdings Ltd (ASX: SWP) share price is lifting higher on Tuesday after the company announced plans to acquire Sydney-based voice service provider, VoiceHub.

At the time of writing, the Swoop share price is up 3.59% to $2.02.

Swoop expands into voice services

VoiceHub offers a combination of traditional voice communication inbound services as well as more sophisticated products such as virtual numbers, SMS messaging solutions and Advanced Intelligent Networking. The business operates across both Australia and New Zealand.

According to the announcement, VoiceHub has invested significantly in upgrading its operations and automation technology. Swoop believes this provides a “strong springboard” for continued growth in this space.

The acquisition will cost $6 million, comprised of $4 million in cash and $2 million in Swoop shares.

The purchase price represents a 4 times multiple of VoiceHub’s FY21 normalised earnings before interest, taxes, depreciation, and amortisation (EBITDA).

VoiceHub is entitled to an earnout of up to a maximum of $2.5 million based on its FY22 EBITDA.

The transaction is expected to be complete on 31 October subject to conditions including obtaining consent to change ownership and VoiceHub employees entering into new employment agreements.

Management commentary

Swoop CEO Alex West commented on the acquisition, saying:

Acquiring VoiceHub’s network provides another opportunity for Swoop to further expand the range of services we can offer across our growing client base in Australia.

Swoop share price snapshot

The Swoop share price has almost surged fourfold since its 50 cents initial public offering (IPO) in late May. It closed at $1.25 on its first day of listing, marking a year-to-date return of 58%.

During this time, the company has successfully acquired four acquisitions to expand its regional fixed wireless network.

Swoop completed a $41 million capital raising this month to prop up its balance sheet and provide flexibility in financing future acquisitions.

The post Swoop (ASX:SWP) share price lifts amid acquisition news appeared first on The Motley Fool Australia.

More reading

• Why is the Swoop (ASX:SWP) share price frozen today?
• Here’s why the Swoop (ASX:SWP) share price is up 11% on Wednesday

Motley Fool contributor Kerry Sun 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.

from The Motley Fool Australia https://ift.tt/3meaU6M

Market watchers interested in the Impedimed Limited (ASX: IPD) share price have woken to another frosty session as the company’s stock remains frozen for a second day.

Impedimed’s shares were halted from trade yesterday while the company undergoes a capital raise.

If the company doesn’t announce the results of the capital raise today, its shares are expected to be defrosted tomorrow.

The Impedimed share price is currently frozen at Friday’s closing price of 17 cents.

 Let’s take a closer look at what the medical software company’s been up to lately.

Why is the Impedimed share price frozen?

Right now, the Impedimed share price is undergoing its second trading halt in as many weeks.

The company released its shares from the freezer last Tuesday when it announced the results of a successful trial.

The results were from Imedimed’s PIVIOT clinical trial. They showed the company’s L-Dex technology could help lower the rate of progression of chronic disease in patients with early detection of cancer-related lymphoedema.

Impressively, the Impedimed share price surged 20% on the trial’s results.

So far, the company hasn’t stated how it’s planning to spend its current capital raising.

However, as of 30 June 2021, Impedimed had around $19.7 million of cash in its wallet and no debt.

Additionally, the last time Impedimed underwent a capital raise was more than 18 months ago.

Then, the company raised around $18.2 million through an entitlement offer. Yet, that was short of its $24.9 million goal.

The raised capital was to fund the commercialisation and reimbursement of the company’s lymphoedema application in the United States, the commercialisation of its heart failure application, and the development and commercialisation of a renal failure application.

It would also fund data and software enhancements, clinical trials, and provide general working capital.

The entitlement offer saw institutional investors able to buy 13 new Impedimed shares for every 10 shares already held for 3.75 cents apiece. Participants also got 1 free option for every new share purchased.

The institutional entitlement offer raised around $10 million and saw 266.2 million new shares and an equal amount of new options handed to investors.

The retail component of the entitlement offer boasted the same ratios. It raised around $8.2 million, selling 218.6 million new shares and giving away the same number of new options.  

The post What’s going on with the Impedimed (ASX:IPD) share price? appeared first on The Motley Fool Australia.

More reading

• The Impedimed (ASX:IPD) share price is up 10% on trial success
• Why the Impedimed (ASX:IPD) share price is rocketing 9% today

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.

from The Motley Fool Australia https://ift.tt/3nmzEsA

The Pilbara Minerals Ltd (ASX: PLS) share price has returned from its trading halt and is zooming higher.

At the time of writing, the lithium miner’s shares are up 8% to $2.26.

This latest gain means the Pilbara Minerals share price is now up 160% since the start of the year.

Why is the Pilbara Minerals share price zooming higher?

Investors have been fighting to buy Pilbara Minerals shares this morning after the release of a major announcement.

According to the release, the company has executed a shareholders agreement with Korean giant POSCO for the formation of an incorporated joint venture.

This joint venture, named POSCO-Pilbara Minerals Lithium Solution, will develop and operate a 43ktpa lithium hydroxide monohydrate (LHM) conversion facility in South Korea. Pilbara Minerals will initially hold an 18% stake in the joint venture, but has opportunities to increase this to 30% in the future.

Management notes that the joint venture is consistent with Pilbara Minerals’ long-term strategy to become a fully integrated lithium raw materials company with a globally diversified customer base.

Conversion Facility

The release explains that the conversion facility will consist of two production trains, each with a 21.5ktpa LHM production capacity. It will leverage POSCO’s leading patented purification technology, which will be licensed on a nonexclusive basis to the joint venture.

Pilbara Minerals will supply 315ktpa of chemical grade spodumene concentrate on commercial terms to the conversion facility. This will be sourced from the company’s existing installed production capacity at the Pilgangoora Project. Product sold under the offtake agreement will be at prevailing market prices for chemical grade spodumene concentrate sold on a CIF basis.

Management stressed that this will not impact the company’s ability to continue to supply product under its existing offtake arrangements with other customers.

The costs

Based on studies undertaken by POSCO, the capital development costs for the conversion facility are currently estimated at a pre-feasibility study level to be between US$600 million to US$650 million dollars.

Though, after allowing for initial working capital and pre-production financing costs, the total joint venture funding requirement is expected to be approximately US$700 to US$750 million. Operating costs of the facility are expected to be largely consistent with industry peers.

Pilbara Minerals’ initial 18% equity participation will be largely funded through the previously announced A$79.6 million five-year convertible bond agreement being provided by POSCO. Funds will be drawn down following the formation of the joint venture and the completion of other conditions precedent.

Pilbara Minerals’ Managing Director and CEO, Ken Brinsden, said: “We are delighted to have executed the Shareholders Agreement with POSCO to jointly own and develop a 43ktpa chemical conversion facility in South Korea which will form an important part of POSCO’s overall supply chain for the lithium raw materials market in South Korea and abroad.”

“This agreement further cements our long-standing relationship with a world-class strategic partner, in the rapidly growing South Korean lithium raw materials market. This joint venture will give Pilbara Minerals significant exposure to one of the world’s most dynamic and fastest growing markets for lithium chemicals. Production is expected to commence from the second half of 2023, which should coincide with burgeoning global lithium chemicals demand.”

“We are very pleased to have the opportunity to partner with a company like POSCO and the supply of spodumene concentrate to the JV chemical plant will also have the benefit of further diversifying our global sales arrangements over time,” he added.

The post Pilbara Minerals (ASX:PLS) share price jumps 8% on POSCO joint venture news appeared first on The Motley Fool Australia.

More reading

• Why ASX lithium shares are surging higher on Tuesday
• ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps
• Why is the Pilbara Minerals (ASX:PLS) share price halted?
• ASX lithium shares higher as spot prices mark new all-time high
• What’s with the Pilbara Minerals (ASX:PLS) share price today?

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.

from The Motley Fool Australia https://ift.tt/3jBYP9y