The Sydney Airport (ASX: SYD) share price is dipping during late afternoon trade. This comes after Australia’s largest airport operator provided an update on the non-binding proposal from the Sydney Aviation Alliance (Consortium).

At the time of writing, Sydney Airport shares are travelling 0.84% lower to $8.30 apiece.

What did Sydney Airport announce?

In today’s statement, Sydney Airport advised that the due diligence period for the Sydney Aviation Alliance takeover bid has concluded.

This follows a revised conditional and non-binding proposal received on 13 September, offering $8.75 cash per stapled security. This represents a 9.4% premium to the Sydney Airport share price at the last closing price before the announcement on 10 September. It is also an increase on Sydney Aviation Alliance’s previous offers of $8.25 cash per share on 5 July and $8.45 cash per share on 16 August.

The Sydney Airport board stated that it’s continuing to negotiate the transaction documents to the relevant parties of the consortium. It is expected that this will be internally approved in the coming weeks. However, the board noted that this is no absolute guarantee.

If the consortium gives the green light, the Sydney Airport shareholders will need to vote in favour of the transaction. The board has previously put forward its recommendation saying the improved offer represents the best interests for Sydney Airport shareholders.

Once this is completed, Sydney Airport and the consortium will enter into a mutually acceptable scheme implementation deed. Although, this would be subject to several conditions, including court and regulatory approvals.

For now, Sydney Airport shareholders will need to wait until the company comes back with more news on the proposal.

Sydney Airport share price snapshot

Over the past 12 months, Sydney Airport shares were mostly tracking sideways until the takeover proposal announcement. Since then, the company’s shares have skyrocketed to near pre-COVID highs.

Currently, its shares are registering a 40% gain from this time last year, and hovering just below 30% for year-to-date.

Sydney Airport presides a market capitalisation of roughly $22.36 billion and has approximately 2.7 billion shares on its books.

The post Sydney Airport (ASX:SYD) share price slides on takeover update appeared first on The Motley Fool Australia.

More reading

• Own Sydney Airport (ASX:SYD) shares? Here’s the latest development on the takeover bid
• What percentage of Sydney Airport (ASX:SYD) shares are owned by institutions?
• Why did the Sydney Airport (ASX:SYD) share price have such a great FY22 first quarter?
• Up 7%, the Flight Centre (ASX:FLT) share price is surging. Here’s why
• Sydney Airport (ASX: SYD) share price slips amid ACCC’s latest findings

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.

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

Owners of Woodside Petroleum Limited (ASX: WPL) shares might want to keep an eye on the upcoming COP26 climate change summit in Glasgow, as net-zero emissions could be disastrous for the company’s Scarborough Project.

That’s according to the International Energy Agency (IEA) which released its World Energy Outlook 2021 last week.

It found that unless the Scarborough Project could get its break-even price below US$5 per British thermal unit, it likely couldn’t profit in a world striving for net-zero emissions by 2050.

Let’s take a closer look at the body’s predictions for the world’s natural gas industry.

A quick refresher

The Scarborough Project is a natural gas resource located off the coast of Western Australia.

The project is a joint venture between Woodside and BHP Group Ltd (ASX: BHP). However, after the planned merger of Woodside and BHP’s petroleum division, the project will be operated by Woodside alone.

Recently, the Conservation Council of Western Australia found Scarborough will produce the same amount of greenhouse gas as 15 new coal-fired power stations.

The company is yet to make a final investment decision on the project.

What could net zero mean for Woodside shares?

The Scarborough Project and, by extension, Woodside Petroleum shares, could be in for a wild ride if global leaders agree to reach net-zero emissions by 2050, according to the IEA. Here’s what the body predicts the natural gas industry will look like if the globe reached net-zero emissions:

Until 2030, the world will see the price of natural gas drop considerably. Trade in the commodity will peak in the mid-2020s before falling to end the decade where it started it. The IEA stated:

Given the low prices of natural gas in the [net-zero emissions scenario], any LNG projects with a break-even price of more than US$5 per million British thermal units (MBtu) would be at risk of failing to recoup their investment costs.

Then, by 2050, less than 190 billion cubic metres of natural gas would be used for power generation globally. That’s 80% less than today’s levels. In fact, in a net-zero 2050, only 1% of electricity would be made using natural gas.

Further, more than 50% of the world’s natural gas would be used to produce low-carbon hydrogen, with another 15% used by industries.

Finally, only 60% of the world’s natural gas would be produced outside of the Middle East and Russia. At the same time, interregional trade in the commodity would drop to around 40% of current levels. The IEA notes:

Without any need for investment in new upstream projects, production in emerging producers in Africa and elsewhere is constrained, and large existing producers and resource holders increasingly dominate supply.

What if net zero targets aren’t met?

Investors might be wondering if the project and their Woodside shares would have a better chance without a strict net-zero target.

The IEA answers that query with 2 additional models. The first considers the scenario of global leaders sticking to their pledges and the second is based on nothing changing from current policies.

The outcome won’t be much better for natural gas projects if global powers stick to their current emission reduction pledges.

If they do, global demand for natural gas will likely have increased 5% by 2030, led by developing regions. However, by 2050, demand will be back to 2020 levels.

It’s a better story for liquid natural gas (LNG). The body predicts LNG would be used to replace other energy sources in Asia.

According to IEA, the best option for the natural gas industry is if nothing changes.

If global policies stay the same as those currently in place or being created, international demand for natural gas will have increased 15% by 2030. Growth in demand will then slow but won’t have peaked by 2050.

Woodside share price snapshot

At the time of writing, the Woodside share price is $25.13, 0.2% lower than its previous close.

That’s also 10% higher than it was at the start of 2021 and 36% higher than it was this time last year.

The post Own Woodside (ASX:WPL) shares? Here’s what the World Energy Outlook could signal appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Why did the Woodside (ASX:WPL) share price slide today?
• 5 things to watch on the ASX 200 on Thursday
• Could the Woodside (ASX:WPL) share price hit $27.50 by the end of 2021?

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/3lPKfwT

In late afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has given back the majority of its earlier gains and is trading just a fraction higher. At the time of writing, the benchmark index is up slightly to 7,367.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Audinate Group Ltd (ASX: AD8)

The Audinate share price is down 8% to $9.02. Investors have been selling the media networking solutions provider’s shares following the release of its first quarter update. For the three months, Audinate delivered a 46.1% increase in unaudited revenue to US$7.6 million. However, taking the gloss off the record quarter was management warning that component shortages are expected to impact its second half performance.

HomeCo Daily Needs REIT (ASX: HDN)

The HomeCo Daily Needs share price is down over 8% to $1.47. This morning HomeCo Daily Needs agreed to merge with Aventus Group (ASX: AVN) and Home Consortium Ltd (ASX: HMC). The agreement will see Aventus shareholders receive 2.2 HomeCo Daily Needs shares and either $0.285 cash or 0.038 Home Consortium shares for every Aventus share they own. This implies an offer price of $3.82, which represents a 15.3% premium to the Aventus share price at the end of last week.

Infomedia Limited (ASX: IFM)

The Infomedia share price has sunk 15% to $1.39. Investors have been selling the shares of the global provider of software as a service solutions to the automotive parts and service sector after it announced the surprise exit of its CEO, Jonathan Rubinsztein. According to the release, Mr Rubinsztein will leave Infomedia later this month to pursue another opportunity within the technology sector.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is down 3% to $12.99. This is despite the online furniture and homewares retailer providing a strong trading update at its annual general meeting. According to the release, Temple & Webster’s revenue for the period July 1 to 15 October increased 56% over the prior corresponding period.

The post Why Audinate, Home Co Daily Needs, Infomedia, and Temple & Webster are falling appeared first on The Motley Fool Australia.

More reading

• Which ASX 300 shares are leading the way on Monday?
• Infomedia (ASX:IFM) share price sinks 14% on shock resignation
• Aventus (ASX:AVN) share price shoots 9% higher on HomeCo merger plans
• Temple & Webster (ASX:TPW) share price races higher on AGM update
• Audinate (ASX:AD8) share price crashes 10% on Q1 update

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 AUDINATEGL FPO, Infomedia, and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia has recommended AVENTUS RE UNIT, Infomedia, and Temple & Webster 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/3jvMMLd

The Fortescue Metals Group Ltd (ASX: FMG) share price is stalling on Monday following fresh Chinese economic data and soft iron ore prices.

At the time of writing, the Fortescue share price is up 0.51% to $14.675.

Iron ore prices retreat amid weak demand

Iron ore spot prices retreated overnight last Friday, down 69 cents or 0.55% to US$125.22 a tonne.

According to Fastmarkets, seaborne iron ore prices fell amid lower traded volumes at Chinese ports.

In the futures market, China’s most active futures contracts for January 2022 delivered on the Dalian Commodity Exchange tanked on open this morning, sliding as much as 6% to ~684 yuan (US$106) a tonne.

Bouncing off morning lows, Chinese futures are currently down 1.2% to around 720 yuan (US$112) a tonne.

China GDP growth hits 1 year low

Another factor that might be weighing on the Fortescue share price is a major slowdown in China’s economic growth.

The world’s second-largest economy reported a 4.9% year-on-year increase in third-quarter GDP, the weakest pace since the third quarter of 2020.

This marked a major slowdown from the 7.9% growth in the second quarter and 18.3% in the first quarter.

The third quarter faced several headwinds including the Evergrande debt crisis and broader property slump, an energy crisis, supply bottlenecks, and surging raw material prices.

Perhaps more relevant for the Fortescue share price, factory output, investment in construction and other fixed assets all weakened.

Industrial production increased 3.1% in September but well below the 4.5% expected by Reuters.

China’s construction sector has been weighed down by tightening credit rules and weak consumer sentiment towards the overall property sector. According to Reuters, China’s September new construction starts fell for a sixth straight month, the longest consecutive decline since 2015.

Fixed asset investment growth came in at 7.3% compared to a year ago, but missed the 7.9% figure from its national bureau.

Fortescue share price lingers around $14

The Fortescue share price is down around 40% year-to-date, spending the past month drifting around the $14 level.

On one hand, iron ore prices have bounced strongly off of recent lows of US$90 a tonne.

However, a slowdown in the all-important Chinese economy and looming Evergrande debt concerns could also put the brakes on the Fortescue comeback story.

The post Why is the Fortescue (ASX:FMG) share price stalling on Monday? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• How fast is green hydrogen growing and which ASX shares could benefit?
• Own Fortescue (ASX:FMG) shares? Here’s the latest on China’s steel demand
• Fortescue (ASX:FMG) share price rises amid Gigafactory plans with Plug Power
• Fortescue (ASX:FMG) share price up 3% against all odds

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/2XjZ01k

The S&P/ASX 200 Index (ASX: XJO) is enjoying a solid start to the week’s trading session so far this Monday. At the time of writing, the ASX 200 is up 0.1% to 7,369 points.

So let’s dive deeper and check out the ASX 200 shares that are topping the trading volume charts so far today, according to investing.com.

The 3 most active ASX 200 shares by volume today

Beach Energy Ltd (ASX: BPT)

ASX 200 energy share Beach is our first company to check out today. Beach Energy has seen an impressive 11.86 million of its shares bought and sold so far this Monday. This elevated trading volume is likely the result of the strong buying pressure we have seen for this company so far today.

At the time of writing, Beach shares are up a healthy 2.21% to $1.48 a share. As my Fool colleague Kerry looked into this afternoon, this appears to be a response to rising crude oil prices, which are now trading at multi-year highs.

Pilbara Minerals Ltd (ASX: PLS)

Our second ASX 200 share today is no stranger to high trading volumes. Lithium producer Pilbara has seen a hefty 17.45 million of its shares find new owners so far this Monday. There are no major news or announcements out of Pilbara today as of yet, so we can probably put this high volume down to the outsized gains Pilbara is also savouring today.

This company is presently up 2.4% to $2.13 a share, outperforming the broader ASX 200 alongside Beach Energy. The Pilbara share price is now up more than 7% over just the past 5 trading days.

South32 Ltd (ASX: S32)

Our final and most traded ASX 200 share so far today is diversified miner South32. This old flame of BHP Group Ltd (ASX: BHP) has seen a whopping 32.03 million of its shares swap hands thus far on Monday. And the song remains the same. This move can likely be put down to the large share price movement South32 has benefited from today.

The miner is currently up a pleasing 4.45% to $3.99 a share. My Fool colleague Brooke delved deeper into today’s performance for South32 this morning, but we have likely found the reason behind today’s elevated trading volume with this big move upwards.

The post These 3 ASX 200 shares are topping the volume charts this Monday appeared first on The Motley Fool Australia.

More reading

• Why is the WAM Capital (ASX:WAM) share price sliding 4% today?
• Why is the South32 (ASX:S32) share price lifting on Monday?
• ASX 200 energy shares open higher as oil prices double in past 12 months
• 2 gold ASX shares experts are loving right now
• ASX 200 (ASX:XJO) midday update: Aristocrat’s $5bn acquisition, Zip falls on Q1 update

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/3lXj1Vf

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:

Orocobre Limited (ASX: ORE)

According to a note out of Ord Minnett, its analysts have retained their buy rating and lifted their price target on this lithium miner’s shares to $10.40. The broker believes recent weakness in the Orocobre share price due to profit taking could be a buying opportunity. Especially given how lithium prices have continued to rise. The Orocobre share price is trading at $9.05 on Monday afternoon.

Redbubble Ltd (ASX: RBL)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $6.50 price target on this ecommerce company’s shares. The broker notes that driving customer loyalty has become a core strategy for Redbubble. Morgan Stanley is pleased with this and believes that its successful execution could help the company achieve 20% to 30% per annum revenue growth over the medium term. The Redbubble share price is fetching $3.84 on Monday.

Transurban Group (ASX: TCL)

Analysts at Morgans have upgraded this toll road operator’s shares to an add rating with an improved price target of $14.82. According to the note, after adjusting its valuation approach, Morgans has unearthed an additional source of incremental value. In addition to this, it feels the current Transurban share price is an attractive entry point for investors following the completion of its retail entitlement offer. The Transurban share price is trading at $13.74 on Monday afternoon.

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

More reading

• These are the 10 most shorted ASX shares
• 2 ASX 200 dividend shares to buy now
• Top brokers name 3 ASX shares to buy next week
• Top broker tips Redbubble (ASX:RBL) share price to jump 22%
• Why ASX lithium shares are booming on Thursday

Motley Fool contributor James Mickleboro owns shares of Orocobre Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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/3pdH8kb

The Wesfarmers Ltd (ASX: WES) share price is having a month to forget.

At the time of writing, shares in the retail conglomerate are trading for $54.95 – up 0.33%. Over the month, however, it’s been less cheery for the company – down 3.48%. For context, despite how turbulent it may have felt, the S&P/ASX 200 Index (ASX: XJO) has actually increased 1.74% over the same time.

Let’s take a closer look at what’s going on.

What’s up with Wesfarmers?

The first major story that had a negative impact on the Wesfarmers share price was the news Sigma Healthcare Ltd (ASX: SIG) had also entered the fray to take over Australian Pharmaceutical Industries Ltd (ASX: API) with a mostly scrip bid for the retail pharmacist.

Sigma put in a bid with an implied value of $1.57 per share – or $773 million for the company. As Motley Fool previously reported, Sigma put a higher bid to API’s board than Wesfarmers, albeit a mostly scrip one.

Sigma’s proposal would see API’s shareholders walking away with 35 cents of cash and 2.05 Sigma shares per API share they held at the time of the proposed merger. This valuation is based on Sigma’s share price at the time the offer was made.

Since that time, Wesfarmers has acquired a nearly 20% stake in API, buying out the portion owned by Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) for $1.38 per share. It has also agreed to pay Sol Patts any additional funds owed to it should its proposed merger with API be successful.

The Wesfarmers share price rose on this strong indication it would be successful in buying API.

What else is affecting the Wesfarmers share price?

Lockdowns are coming to an end in Australia. Sydney left its 15 weeks of COVID restrictions last Monday. Melbourne will leave on Thursday and the ACT is slowly exiting its stay-at-home orders.

Lockdowns have historically been good news for the Wesfarmers share price. The thinking goes with everyone stuck at home and their consumption options limited, people will spend their money on what they can and that includes shopping (either online or in-person) at Bunnings, Kmart, or Officeworks – all Wesfarmers brands. Wesfarmers shares rocketed 11% during the latest delta outbreak.

With lockdowns coming to an end, investors may be seeing the time of supercharged revenues also coming to an end – and thus want to sell on a high.

This could partially explain the falling Wesfarmers share price. Of course, correlation does not equal causation.

Wesfarmers share price snapshot

Over the past 12 months, the Wesfarmers share price has increased 14.0%. Year-to-date, it is up 6.74%. Both of these figures are lower than the growth rate of the ASX 200.

Wesfarmers has a market capitalisation of about $62 billion.

The post Here’s why the Wesfarmers (ASX:WES) share price is down 4% in a month appeared first on The Motley Fool Australia.

More reading

• What’s up with the Wesfarmers (ASX:WES) share price today?
• How did the Wesfarmers (ASX:WES) share price perform in the last quarter?
• Wesfarmers (ASX:WES) share price dips as API battle heats up
• Wesfarmers (ASX:WES) share price struggles amid latest API speculations
• Can the Wesfarmers (ASX:WES) share price reach $60 by Christmas?

Motley Fool contributor Marc Sidarous 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 shares of and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers Limited. 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/3mXwo6W

The S&P/ASX 300 Index (ASX: XKO) is advancing today, adding on Thursday’s 0.57% and Friday’s 0.69% gain.

At the time of writing, the ASX 300 is up 0.24% to 7,387.1 points. It’s worth noting that in the past month, the index has mostly recovered from its 3.5% loss.

Here are some of the top movers on the ASX 300 today.

Paladin Energy Ltd (ASX: PDN)

The Paladin share price is on the move, up 8.64% to 88 cents despite no new company announcements.

The uranium company’s shares are continuing to accelerate following positive investor sentiment in the sector. This has led to fellow peers such as Boss Energy Ltd (ASX: BOE) and 92 Energy Ltd (ASX: 92E) also punching higher.

A strong uptick in oil and gas prices has led nuclear energy as a possible solution as a secure, emission-free power source.

The spot price for uranium has soared over 60% in a year, reaching US$47.20/lb at the time of writing.

Vulcan Energy Resources Ltd (ASX: VUL)

Following suit is the Vulcan share price, up 8.56% to $12.55.

The clean-lithium developer released an announcement in regards to a new binding offtake agreement with leading materials technology company, Umicore.

Under the deal, Umicore will purchase up to 42,000 tonnes of battery-grade lithium hydroxide from Vulcan over a 5-year term. Pricing for the key ingredient will be based on market prices on a take-or-pay basis.

Zimplats Holdings Ltd (ASX: ZIM)

Making headlines again is the Zimplats share price, up 7.48% to $23.84.

The mining company hasn’t provided the market with any new information in the past few weeks.

A possible catalyst for the upward trend could be the improvement in platinum prices over the past few weeks.

And the ASX shares in decline?

HomeCo Daily Needs REIT (ASX: HDN)

Heading south is the HomeCo Daily Needs share price, down a hefty 7.79% to $1.48.

The property company’s shares are in reverse after announcing plans to merge with Aventus Group (ASX: AVN).

The takeover will see Aventus shareholders receive 2.2 HomeCo Daily Needs shares for every Aventus share owned. In addition, shareholders will also receive either $0.285 cash or 0.038 Home Consortium Ltd (ASX: HMC) shares.

Should the merger be approved by Aventus shareholders and other customary conditions, the implementation date will be in mid-February 2022.

Sezzle Inc (ASX: SZL)

Also running at a loss is the Sezzle share price, down 5.46% to $5.89.

Investors have sold off the buy-now-pay-later (BNPL) company’s shares after registering a 20% gain just 2 weeks ago.

Earlier this month, United States retail giant Target announced the launch of a BNPL offering in partnership with Sezzle. This service will be used to attract customers with affordable payment solutions.

Target is the eighth largest retailer in the United States and has a network of more than 1,909 stores.

The post Which ASX 300 shares are leading the way on Monday? appeared first on The Motley Fool Australia.

More reading

• Why MyDeal, Senex, Superloop, and Vulcan shares are surging higher
• Why ASX uranium shares are rallying on Monday
• Aventus (ASX:AVN) share price shoots 9% higher on HomeCo merger plans
• Why the Vulcan (ASX:VUL) share price is jumping 11% on Monday
• Which ASX 300 shares are the major movers on Thursday?

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.

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

The high flying share price of Hazer Group Ltd (ASX: HZR) is pushing upwards on Monday. Shares in the hydrogen production company are front and centre today after the release of its quarterly activities report.

At the time of writing, the Hazer share price is fetching $1.45, up 3.93%. This boost puts the company’s year-to-date performance at 82%.

This brings us to the information contained in Hazer’s report for the quarter ending 30 September 2021. It was a busy time for the ASX-listed small cap. So, let’s delve into what occurred during Q1 FY22.

Hazer share price lifts on progress

Investors are displaying optimism following Hazer’s update, as the daily share volume surpasses the average amount traded. Presently, more than 1.7 million shares have swapped hands during Monday’s session.

Today’s report shares Hazer’s progress on its Commercial Demonstration Project (CDP), under development at the Woodman Point waste-water treatment facility. Following the commencement of site works in March this year, the company has completed site civil preparation and civil construction works.

The project is moving forward to the mechanical, instrument, and electrical works. However, Hazer has revised the project schedule due to delays caused by supply issues for specialist high-temperature materials. As a result, the commissioning of the project will move to the first quarter of the 2022 calendar year.

A quick recap, the CDP is a low-emission hydrogen production facility that is expected to produce 100 tonne per annum. The biogas generated by the treatment plant will be used as feedstock to produce hydrogen and graphite. Given the recent trend in hydrogen power, this development by Hazer has helped push its share price higher.

At this stage, Hazer is forecasting a final cost of $21 million to $22 million for the sizeable engineering project. Although, the company noted that it continues to see cost pressures across materials, equipment, labour, and freight.

Capitalising on the booming interest, Hazer is progressing an engineering study with Chiyoda Corporation which will feed into the concept study for a Hazer plant capable of 2,500 tonne per annum. Furthermore, the company will use this study to advance discussions with potential collaborators across Japan, Europe, Asia, North America, and more.

What’s the cash position of Hazer Group?

At the end of the quarter, the company maintained $27.3 million in cash and cash equivalents. Part of this stash is $5.4 million in grant proceeds from the Australian Renewable Energy Agency (ARENA). Hazer managed to fulfil the milestone conditions to unlock $1.77 million of this capital.

Regarding cash flow, net operating cash outflows of $1.44 million were recorded during the quarter. Meanwhile, net cash inflows from financing activities amounted to $8.67 million – $7 million of which came from the issue of new shares.

Lastly, based on the current Hazer share price, the company commands a market capitalisation of $231 million.

The post Why the Hazer (ASX:HZR) share price is lifting today appeared first on The Motley Fool Australia.

More reading

• 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 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.

from The Motley Fool Australia https://ift.tt/3vk8FS6

The S&P/ASX 200 Index (ASX: XJO) is having a good, albeit bumpy, start to the trading week this Monday. At the time of writing, the ASX 200 is up 0.18% to 7,375.6 points after an initial stumble into negative territory soon after open this morning.

But one ASX share isn’t sharing in this positive sentiment today. That would be the WAM Capital Ltd (ASX: WAM) share price.

WAM shares are currently down a nasty 4.58% from Friday’s close to $2.29 a share, at the time of writing. That’s a pretty steep fall for a Listed Investment Company (LIC) not known for its volatility.

So what’s going on with WAM Capital, one of the ASX’s largest LICs, today?

WAM gets an ASX whamming

Well, there has been some movement at the station for WAM today. This morning, Wilson Asset Management (the WAM in WAM Capital) sent shareholders a notice that this LIC has “acquired all the issued capital of an unlisted investment company with net assets of approximately $36.3 million”. No further details were given about this “unlisted investment company”.

This acquisition has been paid for with new WAM Capital shares. The LIC released an ASX notice this morning confirming that 16,678,217 additional shares have been issued.

But $36.3 million is little more than a drop in the ocean for a company with a market capitalisation north of $2 billion.

Don’t worry, it’s probably just a dividend…

Instead, the real culprit for today’s steep drop is likely to be WAM Capital’s upcoming ASX dividend. Yes, WAM shares have today traded ex-dividend for the LIC’s upcoming final dividend payment. WAM Capital will be shelling out 7.75 cents per share, fully franked, on 29 October. But only shareholders who held WAM shares before today will be eligible to receive this payout.

As such, the rough value of this dividend has been drawn out from the WAM Capital share price today, since new shareholders won’t enjoy this benefit. It’s probably the best reason there is to have one of your shares fall in value.

Yes, a ~4% drop is a large one for WAM Capital. But it does reflect the large value of this upcoming payment. On Friday’s closing share price, 7.75 cents per share equates to a yield of 3.14% (or 6.49% annualised). With the value of this LIC’s full franking, these yields gross-up to 4.49% and 9.27% respectively. With such a hefty dividend payment going out the door, it’s no surprise that we see a big drop in the value of WAM Capital shares today.

At WAM Capital’s current share price of $2.29, this ASX LIC has a market capitalisation of $2.02 billion and a dividend yield of 6.74%.

The post Why is the WAM Capital (ASX:WAM) share price sliding 4% today? appeared first on The Motley Fool Australia.

More reading

• 2 gold ASX shares experts are loving right now
• ASX 200 (ASX:XJO) midday update: Aristocrat’s $5bn acquisition, Zip falls on Q1 update
• 5 things to watch on the ASX 200 on Monday
• 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.

from The Motley Fool Australia https://ift.tt/3aIXp8y