The Swoop Holdings Ltd (ASX: SWP) share price isn’t going anywhere on Thursday. This comes after the telecommunications company placed its shares in a trading halt before market open.

At the time of writing, Swoop shares are frozen at $2.09 apiece.

Why is Swoop in a trading halt?

The Swoop share price was placed in a trading halt this morning pending results in regards to a capital raise.

While no details have been given by the internet provider, several media outlets have indicated what’s happening behind the curtain.

According to the Australian Financial Review, Swoop is raising $40 million in an underwritten capital raise. It is believed fund managers received presentations by the company, detailing its intentions to support a number of acquisitions.

Should these deals be completed, it is estimated up to $15 million in additional earnings before interest, tax, depreciation and amortisation (EBITDA) would be added to Swoop.

The capital raise is likely to be offered at a discount of around 10% on the last closing price.

It’s worth noting the company has the backing of Fortescue Metals Group Limited (ASX: FMG) boss Andrew ‘Twiggy’ Forrest.

In addition, Airtasker Ltd (ASX: ART) chair James Spenceley also sits as an independent non-executive chair for Swoop.

Australia’s largest wealth management firm, Morgans is said to be the broker and underwriter of the capital raise.

Swoop advised its shares will remain in a trading halt until the release of the announcement or by 18 October, whichever comes first.

About the Swoop share price

Since the company’s listing in May 2021, the Swoop share price has accelerated by around 400% from its initial public offering price of 50 cents. Its shares reached a high of $2.46 in September before slightly pulling back.

Swoop has a market capitalisation of roughly $238.73 million, with approximately 171.18 million shares on its books.

The post Why is the Swoop (ASX:SWP) share price frozen today? appeared first on The Motley Fool Australia.

More reading

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

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 recommended Airtasker Limited. 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 Qantas Airways Limited (ASX: QAN) share price is slightly higher this morning, up 0.54% and changing hands at $5.58 in early trade.

Zooming out, Qantas shares have rallied 2.76% in the past month as the broader travel industry gets ready for the impending restart of domestic and international travel penned in for later this year.

What’s been fuelling the Qantas share price lately?

Qantas shares popped back in August after the company revealed it is planning to restart international flights from December.

Around that time, some destinations including Singapore, the US, UK, Japan and Canada will be reachable by air for the first time since COVID-19 forced the closure of the Australian international border.

The airline carrier is wagering that Australia will reach its 80% double-vaccination target set by the National Cabinet earlier this year.

According to the Department of Health, 64.4% of all eligible people have now been immunised against the SARS-CoV-2 virus.

Investors appear bullish on Qantas shares in a “reopening play” that is gaining steam as vaccination numbers creep up.

As this momentum builds, one leading broker has weighed in and presented their outlook for the Qantas share price.

Can Qantas continue its recovery?

Investment banking giant Citibank certainly believes so and likes the timing of the company’s capital expenditure cycle and the restarting of long-haul international flight routes.

The broker reckons that Qantas’ capital expenditure cycle will eventually peak in FY24, judging by the timing of incoming plane deliveries and the airline’s intention to start non-stop flights to the US in 2022.

Curiously, Citi also believes that Qantas may benefit from more favourable pricing from aircraft manufacturers Boeing (NYSE: BE) who are on the quest to regain both market share and credibility after a few horror years.

City says Boeing may tighten its pricing to become more competitive, thereby helping Qantas’ operating profit margins.

Not only that, the bank likes Qantas’ financial health, and reckons it will only need to make periodic payments to service liabilities on its incoming aircraft, hence avoiding the need to raise more capital and dilute investors’ shareholdings.

Given this view, Citi is bullish on Qantas shares and maintains its buy rating and a $5.93 price target. This implies an upside potential of 7.4% on the current share price.

Fellow broker JP Morgan is also bullish on Qantas shares and recently increased its price target by 10 cents to $5.80.

The Qantas share price has managed to claw back some of its 2020 losses and is 13.75% in the green since January 1.

The Qantas share price is up 32.6% over the past 12 months.

The post Why this top broker is bullish on the Qantas (ASX:QAN) share price appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 Douugh Ltd (ASX: DOU) share price is on the rise this morning after the company announced a partnership to launch an integrated crypto offering.

At the time of writing, the Douugh share price is up 16.4% to 7.8 cents.

Douugh app to feature crypto wallet and trading features

Douugh has partnered with leading crypto-as-a-service provider Zero Hash, in the United States to integrate a cryptocurrency wallet and trading capabilities into its core Douugh app.

The partnership will initially allow US customers to buy, hold and sell crypto directly through the Douugh app’s Crypto Jar feature.

The Crypto Jar offering will allow consumers to directly participate in digital asset investing, commission-free. As well as spend with the cryptocurrency of their choice through the Douugh Mastercard debit card.

The partnership with Zero Hash commences immediately, for an initial 3-year term.

The launch of Douugh’s crypto service is subject to approval from the company’s banking partner on the flow of funds.

Douugh said that it intends to launch the Crypto Jar offering and functionality in Q322.

About Zero Hash

Zero Hash is a digital asset settlement and custody platform that is registered in the United States with the Financial Crimes Enforcement Network.

The company can operate in 51 US jurisdictions as a money service business, money transmitter or virtual currency business.

Management commentary

Douugh founder and CEO Andy Taylor commented on the upcoming features, saying:

Cryptocurrency is now at the maturity point that it has become a favored investment for millennials and gen-z who are hungry for yield and access to liquidity. The key for us is facilitating this activity responsibly.

For the next generation of investors, cryptocurrency is becoming an essential component of one’s overall diversified investment portfolio, and we are excited to partner with one of the largest and most regulated exchanges in the digital asset space to provide our customers with the ability to grow their cryptocurrency savings over the long term.

Douugh share price has a long way to go

Despite Douugh’s exciting growth story, its share price is down 54% year-to-date.

This comes off the back of an explosive initial public offering last year, where it surged to all-time highs of almost 50 cents from a listing price of just 3 cents.

The Doough share price has a mountain to climb to breakeven for the year, let alone re-test its previous record highs.

The post Douugh (ASX:DOU) share price rockets 18% on crypto update appeared first on The Motley Fool Australia.

More reading

• Here’s why the Douugh (ASX:DOU) share price is rocketing 18% today

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.

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Here on the Fool, we’ve recently been taking a look at how some of the major S&P/ASX 200 Index (ASX: XJO) shares have gone over the most recent quarter. That would be the first quarter of the 2022 financial year (FY22), which ran from 1 July to 30 September. Over this period, the ASX 200 had a rather lacklustre performance but still managed to eke out a gain of roughly 0.26%. So how did the A2 Milk Company Ltd (ASX: A2M) share price go over this period? That’s what we’ll be checking out today.

How did the A2 Milk share price perform over the quarter?

So A2 Milk started off FY22 at a share price of $6 on the dot. By the time September wrapped up, this dairy company finished the quarter at a price of $6.24 a share. That means this company officially recorded a gain of 4% for the quarter in question. That represents a significant outperformance against the broader ASX 200.

Of course, that metric tells us little about the experience A2 Milk shares actually had over the quarter. On the above number, it appears, this company had a very successful 3-month period.

But over this period in question, we saw A2 Milk shares reach highs of $7.20 a share in early July, as well as lows of $5.36 a share by mid-September. That gap represents a difference of almost 35%, so it’s safe to say this company had a wild ride, despite the bookend figures.

So where to start with what happened for A2 over the quarter just passed? There was a lot going on with this share, as you might gather from the volatility we discussed earlier.

Brokers, results and a takeover…

It’s worth pointing out that brokers have been particularly divided when it comes to A2 Milk. We saw a wide range of brokering views come out over the quarter just gone. These ranged from an ‘underperform’ rating and a 12-month share price target of $5.50 from Credit Suisse, to a ‘buy’ rating and a price target of $7.70 from Bell Potter. This might have been influencing investor sentiment over the quarter.

But we also had a veritable deluge of other news. Firstly, we had rumours that the global food giant Nestle was potentially considering an acquisition bid for the company, possibly due to its depressed share price. As we covered at the time, Nestle was reportedly “taking a close look at A2 Milk”, but was waiting to see what the company’s FY21 results looked like. This gave the company’s shares a boost.

Then there were A2’s FY21 full-year results, which came out back in late August. These initially were not well-received by the market, with the A2 share price falling 10% or so on the morning of their release.

All of these events may have contributed to the wild ride A2 Milk shares had over the quarter just gone. We will have to wait and see what this quarter brings us. So far at least, it’s been more of the same.

At the time of writing, the A2 Milk Company share price is sitting at $6.96, up a very healthy 5.78% for the day so far. At this share price, A2 Milk has a market capitalisation of $4.31 billion.

The post Why did the A2 Milk (ASX:A2M) share price have such a great FY22 first quarter? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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 Harmoney Corp Ltd (ASX: HMY) share price is rocketing in early trade, up 7.94% to $1.84 per share.

Below we take a look at the consumer credit company’s results for the quarter ending 30 September (Q1 FY22) that look to be driving ASX investor interest.

What results did Harmoney report for Q1 FY22?

The Harmoney share price is soaring after the company reported the biggest quarterly lift in new customer originations in its history.

Australian new customer originations of $31 million increased 885% year-on-year and were up 17% on the previous quarter.

The company’s proforma loan book climbed to $517 million. The book yielded a net interest margin of 11% and a net lending margin of 7%.

Its Australian receivables book also showed strong growth, up 58% on the prior quarter to $155 million.

Commenting on the results, Harmoney’s CEO, David Stevens said:

Harmoney continues to deliver on its growth strategy with another outstanding quarter despite COVID lockdowns in Australia and New Zealand…

Harmoney’s Group loan book, at just over half a billion dollars, is already cash NPAT breakeven on a proforma basis. The company’s 100% consumer-direct model and innovative Libra lending platform enables over two thirds of loan applications to be completely automated, providing significant operational leverage and driving profitability as our income grows noticeably faster than our cost base.

Expounding on the company’s technology-focused offerings, Stevens added, “Harmoney’s consumer-direct marketing technology is world class and generates approximately 10,000 new customer accounts per month across Australia and New Zealand.”

Looking ahead

The Harmoney share price may also be getting a boost after the company reaffirmed its market guidance for the full 2022 financial year.

The guidance includes:

• Group proforma loan book of at least $600 million
• Group proforma revenue of at least $92 million
• A net lending margin of at least 7%

Harmoney share price snapshot

Harmoney is a relative newcomer to the ASX. The company’s initial public offering (IPO) was on 19 November 2020.

So far in 2021, the Harmoney share price has struggled, down 36.5%. That compares to a gain of 9.76% posted by the All Ordinaries Index (ASX: XAO).

Over the past month, the Harmoney share price has dropped by 2.39%.

The post Why the Harmoney (ASX:HMY) share price is up 8% today appeared first on The Motley Fool Australia.

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• Why did the A2 Milk (ASX:A2M) share price have such a great FY22 first quarter?
• Own Sydney Airport (ASX:SYD) shares? Here’s the latest development on the takeover bid
• Top broker tips Mineral Resources (ASX:MIN) share price to jump 80%
• ASX uranium shares are surging this week. Here’s why
• Bubs (ASX:BUB) share price jumps a further 13% on broker upgrade

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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Those with Sydney Airport (ASX: SYD) shares in their portfolio might soon be jumping for joy.

The consortium looking to acquire the airport is reportedly preparing to put forward a formal offer over the next few days.

According to reporting by The Australian, the Sydney Aviation Alliance consortium plans to put down a binding $23.6 billion offer in the coming days. That would see the group paying $8.75 per share.

At the time of writing, the Sydney Airport share price is $8.37, 1.33% higher than its previous close.

Let’s take a closer look at the reportedly imminent offer.

A quick refresher

Sydney Airport has been faced with numerous takeover offers from the Sydney Aviation Alliance consortium over the last few months.

Though, the airport’s board only accepted the most recent, $8.75 per share bid, posted on 13 September. Now, the consortium is undertaking due diligence on the airport.

The consortium’s made up of IFM Investors, Global Infrastructure Management, AustralianSuper, and QSuper.

The Sydney Airport share price is currently 44% higher than it was before the consortium posed its first takeover offer.

Today’s news

According to The Australian, it understands the Sydney Aviation Alliance consortium will officially slap its $23.6 billion takeover offer on the table tomorrow or Monday.

The publication states that, following an official acceptance of the offer, the deal would have to be given the green light by the Foreign Investment Review Board and the Australian Competition and Consumer Commission.

The watchdogs might be looking very closely at Sydney Airport’s proposed ownership structure. Particularly, as some members of the consortium reportedly own significant stakes in other Australian airports.

Under Australian law, any one company is restricted from owning large chunks of more than one airport. The Australian states that forming a consortium is an attempt to avoid breaking such ownership rules.

Sydney Airport share price snapshot

The Sydney Airport share price has gained 30% since the start of 2021. It is also 37% higher than it was 12 months ago.

The post Own Sydney Airport (ASX:SYD) shares? Here’s the latest development on the takeover bid appeared first on The Motley Fool Australia.

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• Sydney Airport (ASX: SYD) share price slips amid ACCC’s latest findings
• September has been a good month so far for the Sydney Airport (ASX:SYD) share price

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 Mineral Resources Limited (ASX: MIN) share price is pushing higher on Thursday morning.

At the time of writing, the mining and mining services company’s shares are up 1% to $42.67.

Despite this, the Mineral Resources share price is still down a disappointing 19% since this time last month.

Is this a buying opportunity?

While the last 30 days have been very disappointing for shareholders, one leading broker appears to believe it could be a buying opportunity for non-shareholders.

According to a note out of Macquarie Group Ltd (ASX: MQG) from the end of last month, the broker has an outperform rating and $77.00 price target on the company’s shares.

Based on the current Mineral Resources share price, this implies potential upside of 80% over the next 12 month.

Macquarie likes the company due partly to its bullish view on lithium. Mineral Resources has exposure to the battery making ingredient through the Mt Marion Lithium Project and the Wodgina Lithium Project. The latter is one of the largest known hard rock lithium deposits in the world with a production life of over 30 years.

The broker has also been pleased with recent updates on the Lockyer Deep-1 well. While it is early days, it notes that the company has successfully encountered gas in the Perth Basin. Macquarie sees decarbonisation opportunities for the company by switching to LNG from diesel fuel at its mining operations in Western Australia.

Is anyone else bullish on the Mineral Resources share price?

Another leading broker also sees a lot of value in the Mineral Resources share price at the current level.

A note out of Bell Potter from last week reveals that its analysts have a buy rating and $54.25 price target on the company’s shares.

This implies potential upside of 27% for the Mineral Resources share price over the next 12 months.

It commented: “Prior to the end of CY21, we anticipate Government decisions on approvals for MIN’s iron ore development projects. The successful development of these iron ore projects would result in a step-change to both the scale and commodity- price sensitivity of MIN’s iron ore business. On balance, we consider that short-term downside risks of iron ore price volatility are more than compensated for by our risked valuations for the iron ore projects.”

“Longer-term, there is the potential of MIN’s energy investments to add another dimension to the existing services and commodities businesses. Changes to our earnings estimates with this update include a 41%, 19% and 10% decreases to CY22e, CY23e and CY24e respectively, resulting primarily from changes to our forecast commodity prices and our iron ore grade and quality discounts,” it added.

The post Top broker tips Mineral Resources (ASX:MIN) share price to jump 80% appeared first on The Motley Fool Australia.

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

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ASX uranium shares are surging across the board for a second day following a tsunami of capital inflow into the sector.

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

ASX uranium shares extend winning streak

Yesterday, ASX uranium shares rallied double-digits across the board from the largest, most established players like Paladin Energy Ltd (ASX: PDN) all the way through to speculative explorers like 92 Energy Ltd (ASX: 92E).

The bullish performance continues on Thursday, with the Paladin Energy share price opening 5.2% to 91.5 cents this morning.

More advanced explorers such as Boss Energy Ltd (ASX: BOE) and Deep Yellow Limited (ASX: DYL) also opened a respective 5.4% and 2.3% higher at the morning bell.

On the more speculative end of town, ASX uranium shares including Bannerman Energy Ltd (ASX: BMN), Lotus Resources Ltd (ASX: LOT), Peninsula Energy Ltd (ASX: PEN), and Alligator Energy Ltd (ASX: AGE) also jumped on open.

It looks like the ASX uranium shares have since taken a breather after rallying at the morning bell. Many have partially retreated or faded into slightly negative territory at the time of writing.

What’s driving the re-rate for ASX uranium shares?

Uranium ETF jumps again on record volume

On Wednesday, the Global X Uranium exchange-traded fund (ETF) surged 11.65% on the back of its highest volume since inception. Just over 6.1 million shares traded hands, compared to its 10-day average of around 2.3 million shares.

Last night, the uranium ETF extended its gains, adding another 6.84%, closing at a fresh all-time high. This move was driven by another record volume day, with 6.3 million shares traded.

Evidently, the market is waking up to the role that uranium could play in achieving net zero emissions and supporting the energy crisis taking place across China and Europe.

The uranium ETF has a 12.1% allocation towards ASX uranium shares, with exposure to players including Paladin Energy, Boss Energy, Bannerman Energy and more.

Uranium spot prices tick higher

Another factor in the bullish performance of ASX uranium shares is the resurgence of spot prices.

Uranium spot prices surged US$6.00/lb or 14.8% to US$46.5/lb, according to Numerco.

Uranium prices have rebounded strongly after hitting US$50/lb on 17 September.

Sprott’s buying spree continues

Sprott asset management and its physical uranium trust has been pointed out as a major catalyst behind the re-rate for the uranium sector.

Its uranium trust is one of few funds that invests in physical uranium, taking it off the spot market and tightening supply.

Sprott tweeted this morning that it added another 1.15 million pounds of physical uranium. That brings its total holdings to well over 30 million pounds.

Sprott Physical Uranium Trust keeps growing!

1.15MM pounds of physical #Uranium added today! #SPUT $U.UN $U.U $SRUUF #Nuclear #LowCarbon #Energy #ETF #U308

For more information and disclosures, please visit https://t.co/PcaG53VfN5 pic.twitter.com/Nm6ikmsZbH

— Sprott Asset Management (@Sprott) October 13, 2021

https://platform.twitter.com/widgets.js

The post ASX uranium shares are surging this week. Here’s why appeared first on The Motley Fool Australia.

More reading

• Which ASX 300 shares are leading the way mid-week?
• Why the Peninsula Energy (ASX:PEN) share price is rocketing 20% today
• Here’s why ASX uranium shares are booming double digits across the board on Wednesday
• Why the Paladin Energy (ASX:PDN) share price is up 8% today
• Why ASX uranium shares are bouncing back on Friday

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.

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The Bubs Australia Ltd (ASX: BUB) share price is charging higher for a second day in a row.

In morning trade, the infant formula company’s shares are up 13% to 56.5 cents.

This means the Bubs share price is now up 52% in two days.

Why is the Bubs share price charging higher again today?

The catalyst for the rise in the Bubs share price on Thursday has been a very positive reaction to its first quarter update from a leading broker.

In case you missed it, after several disappointing quarters, Bubs returned to form in the first quarter of FY 2022. It reported quarterly gross revenue of $18.5 million, which represents a 96% increase year on year and a 45% quarter on quarter increase.

A key driver of this growth was Bubs’ China business. Sales across the Chinese Daigou, cross border ecommerce, and General Trade channels increased 156% over the prior corresponding period to $9.8 million. This has sparked hopes that the tough times are now behind the infant formula market.

Which broker is positive on Bubs?

According to a note out of Bell Potter, its analysts have upgraded the company’s shares to a speculative buy rating with a 65 cents price target.

Based on the current Bubs share price, this still implies potential upside of 15% even after its gains this week.

The broker commented: “BUB delivered a surprisingly strong 1Q22 sales outcome, which has been driven in large by the infant nutrition business. Improving secular trade flows to China, continued signs of brand traction (5 consecutive quarters of high double digit scan data sales growth) and the potential for BUB to benefit in indirect distribution channels as A2M shifts focus to direct China channels, suggest more optimism is warranted. To this end we upgrade our rating from Hold, Speculative risk to Buy, Speculative risk.”

Bell Potter also provided colour on how it values in the Bubs share price.

It explained: “Our $0.65ps valuation on BUB’s is predicated on: (1) an existing brand value of 5.5-6.5x FY22-23e revenue (ex-processing), which compares to a peer group of emerging FMCG entities at 5.5x EV/T12M revenue and a 6.7x last reported annualised quarterly revenue; and (2) a value for the processing assets at $4-5/tin of capacity and (3) ProForma net cash post settlement of deferred acquisition costs.”

The post Bubs (ASX:BUB) share price jumps a further 13% on broker upgrade appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BUBS AUST FPO. 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 Vulcan Energy Resources Ltd (ASX: VUL) share price won’t be going anywhere on Thursday.

This morning the lithium developer requested that its shares be placed in a trading halt.

Why is the Vulcan share price halted?

Prior to the market open, the company requested that the Vulcan share price be halted whilst it prepares an announcement.

According to the release, the company is planning to make an announcement in relation to a further binding offtake agreement.

Vulcan has requested that the trading halt remains in place until the earlier of the release of the announcement or the commencement of trade on Monday 18 October.

What’s happening?

At this stage it remains unclear what the new offtake agreement entails. However, it is worth highlighting that this is a further binding offtake agreement.

In August, Vulcan signed a lithium offtake term sheet with auto giant Renault for an initial five-year term. That deal is for the commercial delivery of between 6,000 to 17,000 metric tonnes per year of battery grade lithium chemicals from 2026.

The company also has an offtake agreement for lithium supply with LG Energy Solution for up to 10,000 metric tonnes per year for five years from 2026. LG Energy Solution is the world’s largest producer of lithium-ion batteries for electric vehicles.

This compares to the 40,000 metric tonnes per year of battery grade lithium chemicals that the company expects to produce from its Zero Carbon Lithium Project in Germany. Which means that another large offtake agreement has the potential to secure all of its planned production years before the operation has even started.

With demand for lithium as strong as this, it is no wonder the Vulcan share price has been on fire this year.

Vulcan’s shares are up almost 320% in 2021.

The post Why the Vulcan (ASX:VUL) share price is in a trading halt appeared first on The Motley Fool Australia.

More reading

• Why has the Vulcan Energy (ASX:VUL) share price plunged 27% in a month?
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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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