ASX 200 bank shares are charging higher but the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is still a woeful underperformer.

The ANZ share price jumped 2% to $27.98 during lunch time trade, which is twice the gain of the S&P/ASX 200 Index (Index:^AXJO).

Other bank shares are also performing strongly. The Commonwealth Bank of Australia (ASX: CBA) jumped 4.1%, while the Westpac Banking Corp (ASX: WBC) share price and National Australia Bank Ltd. (ASX: NAB) share price added around 1.5% each.

The ANZ share price is lagging the pack

But before shareholders in ANZ rejoice, the bank is the only big four that’s nursing a loss over the past six months.

The ANZ share price is down around 1.5% over the period. In contrast, the CBA share price rallied 21.1%, NAB share price advanced 5.4% and Westpac share price increased 4.5%.

The ANZ share price fell out of favour as it’s the only one of the big banks that is losing market share in mortgages.

Can falling market share be offset by better margins?

This is despite strong demand for residential property during the COVID-19 pandemic with banks launching aggressive cash-back campaigns to win mortgage customers.

But ANZ resisted going down that path to arrest its declining share of the market. This should mean the bank will report stronger net interest margins when it hands in its full year results later this month.

If its better margins can offset the expected decline in mortgages, the ANZ share price could play catch-up.

ANZ share price looking overvalued

However, the market isn’t yet willing to make this bet. It doesn’t help that the bank’s valuation isn’t seen as a bargain despite its share price underperformance.

Citigroup took a close look at the sector’s valuation, and it found the ANZ share price and CBA share price are overvalued.

You can understand why CBA looks expensive due to its strongly rising share price. It’s more disturbing to have ANZ classified in the same category.

Which ASX big bank shares to buy and sell today

The broker used cost of equity (COE) and the more traditional return on equity (ROE) measure as a valuation yardstick.

“We believe that [ANZ’s] underlying ROE is expected to fall by ~70bps over FY21 to 9.8%,” said the broker.

“However, its share price has also recovered strongly over the past 12 months, up to ~$28 from ~$18. The market appears to be pricing in a significant recovery in underlying ROE.”

Citigroup has a “sell” recommendation on the ANZ share price and CBA share price.

The only big bank shares that it thinks is worth buying is the Westpac share price.  

The post Why the ANZ (ASX:ANZ) share price has lagged the ASX 200 appeared first on The Motley Fool Australia.

More reading

• Why ASX 200 travel shares are having a bumper day
• CBA (ASX:CBA) share price jumps following $6 bn share buy back completion
• A budget blowout and a volatile ASX 200. Scott Phillips on Weekend Sunrise
• Is the ASX open and trading today?
• If you invested $1,000 in Flight Centre (ASX:FLT) shares a decade ago, here’s what it would be worth now

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking Corporation. 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 Novonix Ltd (ASX: NVX) share price has come off recent highs and is trading 12.82% down today at $5.71 apiece.

Novonix shares have marched downwards in the past week, after rallying almost 200% from July until the end of September.

Read on for more details.

What’s pushing Novonix shares lower today?

Novonix shares have been trending down since 29 September and have given away 17% in gains during this time.

There hasn’t been any market-sensitive news for the company. However, we can track the performance of the Novonix share price with the spot price of lithium, the battery metal that Novonix has exposure to.

Not much can be said about the price of lithium in 2021 other than it has shot out of the park over the last 12 months.

Prices for lithium contracts in the commodities markets have soared over 320% since this time last year to now trade at over US$25,000/tonne.

A huge up-step occurred in August, when lithium prices surged a further 80% to reach all-time highs of US$27,300 (at the current exchange rate) on 29 September.

Novonix’s share price correspondingly jumped to its all-time high of $6.86 on 29 September, after storming higher from its 2 August price of $2.83.

The correlation between Novonix’s share price and the price of lithium boils down to the fact that Novonix is an ASX resource share that produces a commodity.

That means it is a price-taker, in that it must accept the offered market prices (or forward prices) of the commodities it sells – in this case, lithium.

Lithium pricing has made a reversal of US$1,705/tonne since its highs on 29 September, which isn’t a small number in absolute or relative terms by any means.

Cross-checking this with Novonix’s share price chart, it’s easy to see the corresponding downward move on 29 September as the price of lithium began its descent.

This downward trend has rolled into the start of trade this week and, in light of this, would help explain why Novonix shares have slipped 11% into the red.

Novonix share price snapshot

The Novonix share price has been a tremendous outperformer on the ASX this year, booking gains of over 380% since 1 January.

This extends its gains in the past 12 months to over 475%, several times the return of the S&P/ASX 200 Index (ASX: XJO) rise of 25% in the same time.

The post Why is the Novonix (ASX:NVX) share price plunging 12% today? appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX lithium shares in September
• Why the Novonix (ASX:NVX) share price rocketed 47% higher in September
• Which ASX 300 shares are leading the way mid-week?
• Why the Novonix (ASX:NVX) share price is climbing among a sea of red on Wednesday
• Which ASX 300 shares are the top movers today?

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.

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The Regional Express Holdings Ltd (ASX: REX) share price is taking off despite silence from the airline.

However, news of Australia’s borders has been hitting the headlines over the weekend, spurred by an announcement made by Prime Minister Scott Morrison on Friday.

Late last week, Morrison declared Australia’s international borders would reopen in November – one month earlier than expected.

While the news may not affect Rex, which only operates domestic flights, it’s good news for the broader travel sector.

Additionally, the reintroduction of home quarantine may have boosted the market’s confidence in the reopening of domestic borders, many of which remain firmly shut due to ongoing outbreaks in parts of Australia.

No matter the reason, Rex’s stock is soaring today. At the time of writing, The Rex share price is $1.73, 8.81% higher than its previous close.

That’s significantly better than the broader market’s performance today. Right now, the S&P/ASX 200 Index (ASX: XJO) is up 1%, as is the All Ordinaries Index (ASX: XAO).

Let’s take a closer look at the news that might be boosting the market’s sentiment in the travel sector.

Rex share price soars on Monday

The Rex share price is soaring today despite no news from the airline.

In fact, it’s a good day for the ASX travel sector broadly. Perhaps the market is responding to the recent news from Prime Minister Scott Morrison.

On Friday, Morrison announced Australia will move to Phase C of the government’s roadmap out of COVID-19 within weeks.

Phase C will see vaccinated Australians free to travel in and out of the country. Morrison anticipates returning vaccinated travellers and those unable to be vaccinated will be able to quarantine at home for 7 days on their arrival following a trial currently being conducted in New South Wales and South Australia.

Additionally, all travel caps will be abolished and the federal government will facilitate flights to states undergoing home quarantine trials.

Unsurprisingly, the Rex share price isn’t the only ASX travel share to be well and truly in the green today.

Right now, the Flight Centre Travel Group Ltd (ASX: FLT) share price is up 9.06%. While Qantas Airways Limited (ASX: QAN) and Webjet Limited (ASX: WEB) shares are gaining 2.1% and 4.64%, respectively.

The post The Regional Express (ASX:REX) share price is booming 8%. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why has the REX (ASX:REX) share price gained 6% so far this week?
• Regional Express (ASX:REX) share price takes flight despite extended stand-downs

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel 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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The Archer Materials Ltd (ASX: AXE) share price has come out of a trading halt today to backtrack mid-afternoon. This comes after the materials technology company provided an update on its recent equity raise.

At the time of writing, Archer shares are swapping hands for $1.60, down a sizeable 7.78%

Archer completes placement

One catalyst for today’s fall in the Archer share price could be investor concerns over an impending share dilution.

According to its release, Archer announced it has received firm commitments for its institutional placement to raise $15 million before costs. The company highlighted that it has strong support from both domestic and offshore institutional investors.

The offer will see approximately 10.3 million new ordinary shares issued at a price of $1.45 apiece. This represents a 16.4% discount to the last closing price of $1.735 on 30 September (before going into a trading halt).

Archer Materials will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows the company to issue up to an additional 15% of its total shares without shareholder approval.

The company will primarily use the proceeds to develop its CQ quantum computing chip and lab-on-a-chip biochip technologies. In particular, Archer will allocate the funds to:

• Progressing its world-first technology development, including its CQ chip and Biochip
• Utilising technology development infrastructure and facilities, R&D, people, and IP, to support pre-market development of the company’s technologies
• Protecting intellectual property assets such as patents and international patent applications
• Establishing and strengthening new and existing commercial partnerships in Australia and abroad
• General working capital

Settlement of the new shares is expected on Thursday 7 October, with allotment scheduled for the next day.

In addition, Archer will launch a non-underwritten share purchase plan (SPP) of $5 million to be offered to eligible investors. The terms will be the same as the institutional placement.

The SPP closes on 28 October, with allotment of the new shares on 4 November.

About the Archer share price

Despite today’s falls, Archer shares have gained around 233% in the past 12 months. However, the company’s share price is around 50% off its all-time high of $3.08 from mid-August.

Based on valuation grounds, Archer presides a market capitalisation of $395.07 million, with almost 227 million shares outstanding.

The post Archer Materials (ASX:AXE) share price dives on capital raising update appeared first on The Motley Fool Australia.

More reading

• Why is the Archer Materials (ASX:AXE) share price halted?
• The Archer Materials (ASX:AXE) share price is down 5% on Tuesday
• Archer Materials (ASX:AXE) share price soars 29% on US patent

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

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The S&P/ASX 200 Index (ASX: XJO) is up more than 1% right now, but the ASX 200 travel shares are having an even stronger start to the week.

Looking at the gains, the Flight Centre Travel Group Ltd (ASX: FLT) share price is up more than 8%, the Corporate Travel Management Ltd (ASX: CTD) share price is up over 3%, the Webjet Limited (ASX: WEB) share price went up more than 5% and the Qantas Airways Limited (ASX: QAN) share price is up over 2%.

An even stronger reaction has been for the Helloworld Travel Ltd (ASX: HLO) share price, which is up around 12%.

What’s happening with the ASX 200 travel share?

There is an ongoing global recovery for the worldwide travel industry, with investors bidding up prices.

Internationally, global travel shares saw a large rise of share prices on Friday. For example, the United Airlines Holdings Inc (NASDAQ: UAL), share price increased around 8%, the Booking Holdings Inc (NASDAQ: BKNG), the Hilton Hotels Corporation (NYSE: HLT) share price rose 4.6% and the Marriott International Inc (NASDAQ: MAR) share price increased 5.3%.

Prior to some hopeful healthcare news, which I’ll get to later, the ASX 200 travel industry was already seeing a recovery, which was getting stronger as the months go on.

For example, Webjet said at the end of August that vaccine rollouts were underway and directly correlated to travel recovery. Management said the USA and UK vaccine rollout programs are well advanced, with the North American and European markets starting to open up. It also said that vaccine rollouts were expected to help in the 2022 calendar year, particularly in the US and UK, although the timing of removal of border restrictions is still uncertain.

ASX 200 travel share Corporate Travel said that it’s seeing momentum building in the northern hemisphere, with July delivering a record revenue result during this COVID era. The company also noted that domestic travel was quickly recovering in the UK, and the trend is expected to accelerate across Europe after the summer holiday period.

The “lucrative” trans-Atlantic and intra-European segments are opening or were expected to re-open in the first half of FY22.

Healthcare news

The ASX 200 travel share industry investors may also be taking into account an announcement regarding a potential COVID-19 treatment.

According to global media, such as reporting by the BBC, a new drug for treating COVID cuts the risk of hospitalisation or death by around half. It was reported that the tablet, called molnupiravir, was given to patients twice a day that had recently been diagnosed with the disease. This could be the first authorised oral antiviral medication for COVID-19.

The BBC reported that:

US drug-maker Merck said its results were so positive that outside monitors had asked to stop the trial early.

It said it would apply for emergency use authorisation for the drug in the US in the next two weeks.

Merck’s vice-president of infectious disease discovery, told the BBC: “An antiviral treatment for people who are not vaccinated, or who are less responsive to immunity from vaccines, is a very important tool in helping to end this pandemic.”

Time will tell how the ASX 200 travel share responds to this over the longer-term.

The post Why ASX 200 travel shares are having a bumper day appeared first on The Motley Fool Australia.

More reading

• Up 5%, the Webjet (ASX:WEB) share price is back to March 2020 levels. Here’s why
• Up 7%, the Flight Centre (ASX:FLT) share price is surging. Here’s why
• A budget blowout and a volatile ASX 200. Scott Phillips on Weekend Sunrise
• Is the ASX open and trading today?
• If you invested $1,000 in Flight Centre (ASX:FLT) shares a decade ago, here’s what it would be worth now

Motley Fool contributor Tristan Harrison 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 Helloworld Limited. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited, Helloworld Limited, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel 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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The Yancoal Australia Ltd (ASX: YAL) share price is soaring into the green during afternoon trade today and is currently changing hands 15% higher at $3.45 apiece.

Yancoal shares have rallied to 2-year highs from a previous low of $2.37 in late September, driven by strengths in the coal markets.

Read on for more details.

What’s causing Yancoal shares to rise lately?

The Yancoal share price has jumped 28% in the past few days as prices have skyrocketed in the spot and futures markets for coal.

One tonne of coal now commands a premium of US$228/tonne, which is a new all-time high– a record that has continuously been broken in linear fashion since May of this year.

Since 24 September, coal pricing has made another upside move, climbing another 26% – or $47/tonne – in a matter of days.

The uptick in coal pricing now marks a 290% year on year increase for the fossil fuel, spurred on by supply headwinds from China and shifting investment trends into renewables.

Couple this with the recent surge in natural gas prices throughout the UK and Europe, and the fact that coal is still the biggest source of electricity power to both China and India – 35% of the world population – then it creates a richly-flavoured recipe for coal pricing.

Yancoal is in a unique position in this regard, in that it is an ASX pure-play coal producer, meaning its entire revenue stream comes from the production of coal.

As such, it is considered a price taker, and its share price can and does fluctuate in direct correlation with the price of coal in the commodity markets.

So if the price of coal goes up, so too will the Yancoal share price, and vice versa, as is the case with most ASX resource shares that produce a commodity.

With this in mind, and with the recent jump in coal that’s set another new record high, it starts to make sense as to why Yancoal shares may be trading higher these past few days.

Yancoal share price snapshot

It’s been quite a robust year for the coal company, with a market capitalisation of almost $4 billion, on the back of these strengths in coal pricing.

The Yancoal share price has now climbed 43% since January 1. It’s rallied 46% this past month, and another 36% in the last week alone.

As such Yancoal’s shareholders have enjoyed a return of 72% this past year, ahead of the S&P/ASX 200 index (ASX: XJO)’s gain of around 25% in this time.

The post Yancoal (ASX:YAL) share price flies 15% as coal prices surge appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Yancoal (ASX:YAL) share price surges 11% to a new 52-week high
• Which ASX shares are set to finish the week as the top movers on the ASX 300?
• ASX 200 energy shares in firing line of United Nations’ climate action

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.

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The Telstra Corporation Ltd (ASX: TLS) share price’s worst day ever was spurred by the company’s plans to slash its dividends.

On 17 August 2017, Telstra released its earnings for financial year 2017 and the outcome of a capital allocation strategy review.

As a result, the telecommunication giant’s stock fell 10.6% to finish the day’s session at $3.87. That represented a new 5-year low and the worst fall Telstra’s shares have ever experienced.

Of course, $3.87 isn’t out of the ordinary for Telstra’s stock in 2021. At the time of writing, the Telstra share price is $3.91, 0.26% higher than its previous close.

So, what exactly spurred Telstra’s shares to drop 10.6% in a single session? Let’s take a look.

The Telstra share price’s worst day ever

The Telstra share price’s worst day on the ASX was spurred by the company’s plan to slash future dividends.

Telstra announced it would be cutting its future dividends on the back of its capital allocation strategy review.

Historically, Telstra’s dividends represented 100% of its underlying earnings. But after financial year 2017, the company cut them to between 70% and 90% of its underlying earnings.

Thus, Telstra’s total dividends for financial year 2018 were expected to be worth 22 cents.

In fact, they came in at 15 cents. Though, that figure doesn’t include two 3.5 cent special dividends which we will get to in a moment.

Dropped dividends weren’t the only outcome of Telstra’s capital allocation strategy review.

The telco also announced it planned to monetise around 40% of its NBN receipts. It expected the move would bring in between $5 billion and $5.5 billion of cash.

That cash would go towards paying off around $1 billion of debt. The rest would enhance shareholder returns, likely through share buybacks.

Additionally, Telstra announced that, in the future, it hoped to return around 75% of the value of one-off NBN receipts to shareholders through special dividends.

However, NBN Co rejected Telstra’s plans to monetise its NBN receipts on 30 August 2017. Again, the news was to the detriment of the Telstra share price which fell 6% that day.

That meant Telstra’s future plans were brought forward. Telstra began to give back some of the value of its off-of NBN receipts to shareholders in 2018 when it provided two 3.5 cent special dividends.

Telstra also released its earnings for financial year 2017 on 17 August 2017. They included modest increases to the company’s revenue, earnings before interest, tax, depreciation, and amortisation (EBITDA), and net profit after tax.

The post When was the worst ever day on the Telstra (ASX:TLS) share price chart? appeared first on The Motley Fool Australia.

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• Why this broker sees 30% upside for the AGL (ASX:AGL) share price
• 2 ASX dividend shares with fully franked yields of more than 5% today
• Did Optus just get a better deal than Telstra (ASX:TLS) for its towers?
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• 3 reasons why the Telstra (ASX:TLS) share price could be a buy

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation 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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The Commonwealth Bank of Australia (ASX: CBA) share price is a top performer on Monday after the company announced the completion of its $6 billion off-market buy-back.

At the time of writing, the CBA share price is up 3.92% to $104.

According to CBA’s initial buy-back announcement, management described it as the “most efficient and value-enhancing strategy to distribute CBA’s surplus capital and franking credits.”

CBA share price jumps on off-market share buy-back

The transaction will enable CBA to buy 67.7 million shares from investors or 3.82% of its shares on issue.

The buyback will apply a 14% discount on shares with a market price of $103.05.

Participating investors will receive $88.52 for each share, including a $21.66 capital component and a full-franked dividend of $66.96.

According to the release, the buy-back was scaled back by 79.4% “due to strong demand”.

The scale back was planned to “minimise disadvantaging shareholders with a small number of shares”.

Applicants who would be left with 20 shares or less as a result of the scale back would receive their full allocation instead.

It is understood that the buy-back will reduce CBA’s CET1 capital ratio by ~133 basis points (based upon 30 June 2021 reported capital).

What’s next for CBA investors?

The statement said that payments for the buy-back will commence from Friday, 8 October.

“Payments will be made via direct credit and a statement will also be sent out from this date.”

What happened to CBA last Friday?

The CBA share price has recouped last Friday’s losses after it plunged 4.07% to $100.08.

The sharp decline was led by broad-based selling across the market, where the S&P/ASX 200 Index (ASX: XJO) tumbled 2% to a 4-month low of 7,185.

In addition, investors might want to pay attention to the Australian Bureau of Statistics’s (ABS) latest new loan commitments data.

Last Friday, the ABS revealed that new loan commitments, from a month-on-month perspective, declined 4.3% for housing and 2.5% for personal fixed term loans.

The post CBA (ASX:CBA) share price jumps following $6 bn share buy back completion appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) and this dividend share have been named as buys
• How does the Westpac (ASX:WBC) dividend compare to the banking sector?
• Here’s what happened to the CBA (ASX:CBA) share price in September
• These were the best performing ASX bank shares in September
• Why CBA, Mount Gibson, Pilbara Minerals, & Virgin Money shares are dropping

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 Auking Mining Ltd (ASX: AKN) share price is soaring into the green during afternoon trade today and now trades at 29.5 cents apiece.

Auking shares are on the move after the company announced a key update at its flagship Koongie Park copper/zinc project.

Here’s what we know out of the resource exploration company’s camp today.

What did Auking Mining announce today?

The Auking Mining share price has jumped today after the company announced the first assay results had been obtained from its drilling program at Koongie Park, located in the Kimberly, WA.

The results indicate “high-grade, near surface c copper, zinc, silver, and other mineral intersections across all holes drilled”.

Each of the 5 drill holes were performed using reverse circulation (RC) drilling at the Onedin deposit, with no assays undertaken for the presence of gold.

Specifically, Auking advises the results show a “124 metre, continuous near-surface, high-grade zone of > 1% grade copper, lead and zinc mineralisation”.

It also contains high-grade silver mineralisation and molybdenum, despite limited evidence of the latter being displayed from previous activity at the site.

As the hole was terminated at 132 metres “for water bore purposes”, Auking will now extend the hole depth by a further 170 metres to attempt to intersect the mineralisation at a further depth.

Regarding the results, Auking Mining CEO Paul Williams appeared encouraged.

Speaking on the announcement, Williams said:

These first assay results from initial drilling at Koongie Park are very encouraging and provide a strong
foundation for our future activities at this project… AKN continues to make strong progress with its drilling program at Koongie Park and we look forward to presenting further results over the next couple of months.

Shareholders appear encouraged too, as the Auking Mining share price has climbed a further 40% into the green since the market open today.

Auking Mining share price snapshot

The Auking Mining share price has skyrocketed almost 64% in the last month, after the company listed on the ASX in June of this year.

Prior to this, it was trading flat at around 20 cents apiece but has stepped well ahead of the broad indices this past few weeks.

At the time of writing, Auking Mining has a market capitalisation of $12.66 million.

The post Auking Mining (ASX:AKN) share price rockets 40% on mineral update appeared first on The Motley Fool Australia.

More reading

• Metalstech (ASX:MTC) share price soars 17% on record gold hit
• The week ahead: RBA meeting, new car sales, and jobs data. Scott Phillips on Nine’s Late News
• Up 5%, the Webjet (ASX:WEB) share price is back to March 2020 levels. Here’s why
• It’s been a rollercoaster for the CSL (ASX:CSL) share price over the last 6 months
• Xtek (ASX:XTE) share price sinks 23% on capital raising efforts

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.

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The Metalstech Ltd (ASX: MTC) share price is soaring 14% into the green during this afternoon’s session and now trades at 75.5 cents.

Metalstech shares are on the move after the lithium and cobalt exploration company announced a key update today regarding its gold mine in Slovakia.

Here’s what we know.

What did Metalstech announce?

Metalstech gave details of what it called a “bonanza gold hit” at its Sturec Gold mine in Slovakia.

The company has now completed two diamond drill holes at the site, aimed at “increasing confidence in the mineralisation zone” outside the existing Sturec resource.

One of the drill holes, UGA-18, intersected a thick, mineralised zone “for an extraordinary 622 ‘grams-metres’ including higher grade zones”.

This resulted in a “new record bonanza result” 81 metres downhole from the second drill hole at the site.

Today’s announcement follows a similar announcement from the first drill hole at the site, UGA-17, last week. Assay results from this hole offer basically the same benefits to the Sturec site, as per the company.

Metalstech is confident that the assay results obtained from UGA-18, alongside the assay result in UGA-17, offers “strong confidence to the mineralised zone interpretation” to the existing Sturec resource.

The company is also finalising a report on the metallurgical test work, which investors can expect to see released next week, per the release.

One important factor is that the “intersections are not a true thickness, as the drill hole was drilled at an angle to the mineralised zone due to the location of the underground drill site relative to the target zone”.

Additional drilling is therefore necessary to “better constrain the interpretation”, as per Metalstech.

The company itself certainly appears happy, with chairperson Russel Moran saying:

Sturec is shaping up to be an extraordinary deposit with bonanza grade potential…we are hopeful we will continue to hit these incredible mineralised ones which can expand on and help grow what is already a very exciting and significant gold resource.

Shareholders appear to agree too and are buying Metalstech in droves today, despite the price of gold coming off 3 previous highs since June to trade at US$1,764.93/t.oz.

Metalstech share price snapshot

The Metalstech share price has been a major winner on the ASX this year, booking a gain of 268% since January 1. It’s rallied over the past month by over 179% and gained another 29% this past week.

This extends its return over the past 12 months to 372%, well ahead of the S&P/ASX 200 index (ASX: XJO)’s gain of about 25% in this time.

The post Metalstech (ASX:MTC) share price soars 17% on record gold hit appeared first on The Motley Fool Australia.

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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.

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