It’s been a big month for the Pan Asia Metals Ltd (ASX: PAM) share price.

The company has released plenty of news over the last 30 days, including updates from its Reung Kiet Lithium Prospect and news of an $8 million capital raise.

Right now, the Pan Asia share price is 47 cents, 176% higher than it was this time last month. It is also up 3.3% on the day.

Let’s take a closer look at what’s been driving the Pan Asia share price lately.

Quick refresher

Pan Asia is a minerals explorer focused on tungsten and lithium projects in Thailand.

The Pan Asia share price’s recent surge began when the company announced it had lodged prospecting licence applications for 5 prospects at its Kata Thong Lithium Project on August 31.

Less than a week later, the company announced news of an $8 million capital raise.

Then, Pan Asia released exciting drill results to the market. As The Motley Fool Australia reported, the company said it had found thick pegmatites, indicating lithium mineralisation, at its Reung Kiet Lithium Prospect.  

Between announcing the news of its Kata Thong Lithium Project and the news from its Reung Kiet Lithium Prospect, the Pan Asia share price gained a massive 353%.

The latest from Pan Asia

The latest news to drive the Pan Asia share price was released on Tuesday.

Then, the company released its share purchase plan’s documentation and a drilling update from its Reung Kiet Lithium Prospect.

The drilling update noted Pan Asia received positive assay results from 7 drill holes, finding pegmatite dyke-vein swarms containing lithium mineralisation.

The swarm is up to 100 metres wide, containing pegmatite veins and dykes up to 18 metres wide. The mineralisation is around 1 kilometre long and remains open to the north, south, and at depth.

The assay results also found tin, tantalum rubidium, cesium, and potassium mineralisation. These could become valuable by-products from the project.

A scoping study for Pan Asia’s Reung Kiet Prospect is set to be released in the first quarter of 2022.

Additionally, Pan Asia released more details of its $8 million capital raise.

The company has already completed a $6 million private placement and plans to begin a $2 million share purchase plan.

Under the plan, eligible shareholders can get their hands on additional Pan Asia shares for 40 cents apiece.

The raised capital will go towards drilling at the Reung Kiet Lithium Project and exploration applications at the Kata Thong Project. Some of the funds will go to the company’s battery and critical metal project generation program.

Investors involved in the share purchase plan must purchase between $2,500 and $30,000 worth of shares. Shares will only be offered in parcels valued at $2,500, $5,000, $7,500, $10,000, $15,000, $20,000, or $30,000.

Pan Asia share price snapshot

Its strong month’s performance has boosted the already well-performing Pan Asia share price higher.

Right now, it is 235% higher than it was at the start of 2021. It has also gained 135% since this time last year.

The post Why the Pan Asia (ASX:PAM) share price has gained 176% in a month appeared first on The Motley Fool Australia.

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• Pan Asia Metals share price soars 130% on lithium project update

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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BHP Group Ltd (ASX: BHP) shares have struggled in recent months. The Aussie iron ore giant has seen its value drop 20.8% on the ASX in the past month to a $199.7 billion market capitalisation.

Investors might be alarmed to see such a huge drop in value from an ASX large cap. The good news is, however, there’s more to the recent share price declines than meets the eye.

Why BHP shares are down 20% in the past month

It has been a busy time for BHP recently. There was the group’s August full-year earnings result followed up by the merger announcement with Woodside Petroleum Limited (ASX: WPL).

Woodside will merge with BHP’s petroleum division to create a global top 10 independent energy company by production. The news was big for both Woodside and BHP, but it doesn’t necessarily explain the recent decline in BHP shares.

Rio Tinto Limited (ASX: RIO) shares are down 10.9% in the past month while Fortescue Metals Group Limited (ASX: FMG) shares have slumped 26.3%. Tumbling iron ore prices amid changing market conditions in China has certainly hurt the large Aussie miners.

There is also the recent changes announced in the August results regarding organisational restructure. BHP is planning to drop its dual listing in the UK on the London Stock Exchange as part of the changes.

The subsequent sell-down from UK funds on the back of the news has therefore made the BHP UK price plummet. That price drop may also have had a knock-on effect for the Aussie listing as investors recalibrate amid the UK valuation changes.

That means that while the BHP share price has tumbled in the past month, it may not be as simple as Rio Tinto being “the better pick”. It’s a busy period for the Aussie iron ore miner right now and that means identifying what’s driving valuation changes is difficult for even the best investors.

The post BHP (ASX:BHP) shares are down 20% in a month. Here’s why it’s not all bad news for investors appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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 Altium Limited (ASX: ALU) share price is on fire right now. Shares in the Aussie tech stock have surged 19.7% higher since the end of August to $35.79 per share at Thursday’s close.

In early trade on Friday, the Altium share price is rising strongly, up by 5.72% to $36.98 at the time of writing.

So, what’s sparking the recent recovery for the WAAAX share?

Why the Altium share price is up 20% in September

Altium was a little bit late to the party on the August reporting season. The company released its full-year results on August 30 with some of the key takeaways below:

• Total revenue up 1% on the prior corresponding period (pcp) to US$191 million
• Recurring revenue share of total revenue up by 6% on pcp to 65%
• Profit before tax down 7% on pcp to US$48 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) down 3% on pcp to US$60 million
• Net profit after tax up 80% on pcp to US$35 million

At first glance, it appears to have been a bit of a mixed bag for Altium. The company’s shares slumped following the earnings release but have been climbing strongly in September.

The Altium share price is underperforming the S&P/ASX 200 Index (ASX: XJO) in 2021. It is up 6.8% year to date compared to the index at 10.6%.

Broker says ‘buy’

One factor at play for the recent gains has been positive broker notes. Citi recently upgraded the company’s shares to a ‘buy’ rating in a recent note with a $35.40 price target. That helped boost the Altium share price higher in early September as investors reacted to the news.

While Altium is lagging the index in 2021, it’s not all bad news for buy and hold investors. Shares in the electronic design software provider are up 294% in the past 5 years, excluding dividends.

The post Why the Altium (ASX:ALU) share price is up 20% in September appeared first on The Motley Fool Australia.

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• How have ASX technology shares performed during the August 2021 earnings season?

Motley Fool contributor Ken Hall 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 Altium. The Motley Fool Australia owns shares of and has recommended Altium. 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 IDP Education Ltd (ASX: IEL) share price has rallied into all-time highs this month despite ongoing disruptions to its international student placement and English language testing services.

The company released its FY21 full-year results on 25 August, where it revealed that revenues slipped 10% to $528.7 million and adjusted net profit after tax dropped 36% to $45 million.

Despite a weak financial performance, the IDP share price is up 20% in the past month and up 58% year-to-date.

In an article featured on Livewire, Nathan Hughes from Perpetual Limited (ASX: PPT) and Mike Murray from Australian Ethical Investment Limited (ASX: AEF) both struggled to justify the company’s valuation.

Why experts think the IDP share price is too expensive

Murray could see why investors might want to buy IDP shares when the economy and international borders eventually reopen.

“There’s no doubt they will get very good growth as part of a reopening trade,” he said.

However, the price tag that comes along with the IDP share price was simply too expensive to ignore.

“We’ve always just struggled with valuation with this name. I think you’re probably paying about 50 times, even on recovered earnings. They certainly have shown a good degree of resilience through the downturn. I think it’s a quality business, but it’s a sell for us.”

Hughes held the same view, but pointed out that he’s been on the “wrong side of this stock, pretty much since the day it listed.”

Funnily enough, the IDP share price has boomed more than 800% since listing in November 2015.

Hughes highlighted a number of positive factors about the business, citing that it is a “tremendous growth story and obviously has a lot of desirable attributes, great market share, great balance sheet, generates a tonne of cashflow.”

Unfortunately, the hefty price tag was something that just didn’t add up.

The post Why these experts think the IDP Education (ASX:IEL) share price is fully valued appeared first on The Motley Fool Australia.

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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. owns shares of and has recommended Idp Education Pty Ltd. 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 Regis Resources Limited (ASX: RRL) share price is out of form again on Friday.

In morning trade, the gold miner’s shares are down 5% to a 52-week low of $2.05.

Why is the Regis Resources share price under pressure?

Investors have been selling down the Regis Resources share price today after a pullback in the gold price to a one-month low.

According to CNBC, the spot gold price fell 2.3% to US$1,754.10 an ounce during overnight trade. This was driven by improvements in the US dollar and bond yields, reducing the appeal of the precious metal.

It isn’t just the Regis Resources share price falling today, though. The weakness in the gold price has led to the S&P/ASX All Ordinaries Gold index falling almost 4%.

Why are its shares at a 52-week low?

While the above explains the weakness in the Regis Resources share price today, it doesn’t necessarily explain why it is at a 52-week low.

That appears to be due to uncertainty relating to its McPhillamys Gold Project. This project is one of the largest undeveloped open pit gold projects in Australia and seen as the key driver of the company’s future growth.

However, it is still seeking approval and the progress to gaining it has been taking some time. It is largely because of this that the team at Goldman Sachs have a sell rating on its shares.

Last month the broker commented: “McPhillamys approvals and execution risk: the greenfield development project is still awaiting regulatory approval (DPIE and IPC) and a pending DFS update. We see downside risk in the project achieving regulatory approvals given a mixed recent history of mining approvals in NSW. Regardless, we expect that when-and-if the project is approved, the updated DFS will present significantly higher capex and opex estimates than the 2017 PFS. Given the slow progress of approvals, our forecast construction and commissioning timeline assumes plant commissioning late-2023.”

Though, it is worth noting that since the release of this note, the Regis Resources share price has tumbled lower. As such, it is now trading well below Goldman’s price target of $2.50. This could be a sign that value is now emerging for investors.

The post The Regis Resources (ASX:RRL) share price is down 5% to a 52-week low 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 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 Elixir Energy Ltd (ASX: EXR) share price is blowing off steam after the energy producer announced an operations update.

At the time of writing, Elixir shares are swapping hands for 27 cents, down 3.57%.

What’s driving the Elixir Energy share price lower?

Investors are selling off Elixir shares after the company provided an update of its operating performance over the last month.

This relates to its current exploration campaign at its wholly-owned Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC). CBM is better known as coal seam gas in Australia.

The company said its Richcairn-1S exploration well, located within the Nomgon project in Mongolia, has now been completed. Up to 792 metres were drilled, and 16 metres of coal and 20 metres of highly carbonaceous mudstone (silty coal) were discovered.

The rig will move to another location, Richcairn-2S, with drilling due to start in the next day or so. In a possible boost for the Elixir Energy share price, the company noted that drilling further wells could lead to an extensive coal-bearing sub-basin for 2021 and beyond.

As the last 6 wells have all intersected their coal targets, the company will add a third rig to accelerate its 2021 drilling program.

The Nomgon Central-1 core-hole has reached a total depth of 559 metres and logged 65 metres of coal. Currently, the well is gathering data that will underpin the design of future production testing. A number of laboratory tests are expected to follow in the coming months.

Drilling at the next Nomgon sub-basin appraisal well – Nomgon 6 – will begin later this week. The results from this will be used in the technical design of the planned 2022 production testing. In addition, the results will help secure the required environmental and other approvals in Mongolia.

Lastly, Elixir’s expanded seismic program is also due to begin shortly, targeting the acquisition of another 300 kilometres.

Management commentary

Managing director Neil Young commented on the news possibly driving the Elixir Energy share price:

With Richcairn, we have now added 3 new potentially productive sub-basins to our inventory in 2021 to date.

At Nomgon we continue to gather the data required to underpin our foreshadowed two-stage production testing process. As always in the last 18 months, we commend the resilience of our Mongolian team and sub-contractors in battling through the ongoing COVID-19 pandemic.

The Elixir Energy share price has doubled in value over the past 12 months and is up roughly 120% this year.

The post Elixir Energy (ASX:EXR) share price slumps on coal update appeared first on The Motley Fool Australia.

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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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Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Thursday night to discuss Wesfarmers Ltd‘s (ASX: WES) acquisition of Australian Pharmaceutical Industries Ltd (ASX: API) and Domain Holdings Australia Ltd‘s (ASX:DHG) acquisition of a property data business, plus Telstra Corporation Ltd’s (ASX: TLS) ambitious new growth plans, and Myer Holdings Ltd’s (ASX: MYR) return to second-half profitability for the first time since 2017.

The post Acquisitions for Wesfarmers and Domain, Telstra plans to grow and Myer back in profit. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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Motley Fool contributor Scott Phillips owns shares of Telstra Corporation 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 owns shares of and has recommended Telstra Corporation 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.

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The Medibank Private Ltd (ASX: MPL) share price is moving higher this morning. This follows the release of the private health insurers’ annual report for 2021.

While the financial results had already been shared with investors back on 25 August 2021, today’s release comes with some added details and commentary.

At the time of writing, the Medibank Private share price is down 0.28% to $3.55 in early trade.

Let’s dive into the report.

More customers getting more back

To kick things off, the report opens with an elating one-liner, stating “We grew more in the past 12 months than we have in over 10 years.” Such a statement could have investors jumping for joy.

Although the exact metric being measured isn’t specified, we know that it’s not pertaining to the company’s net earnings after tax. In FY21, Medibank’s group net profit after tax increased 39.8% to $441.2 million. We only need to go back to FY16 to see earnings grow more than this. For reference, FY16 witnessed the bottom line climb 46% to $417.6 million.

Additionally, customer numbers across the Medibank and ahm brands have slipped since 2016 as well. According to its annual report at the time, the company served 3.8 million customers. Meanwhile, the company counts 3.7 million people as customers — a reduction of nearly 3%. This might be weighing on the Medibank Private share price this morning.

However, what has increased is the amount of money paid in claims to customers. For the recent financial year, Medibank coughed up $5.6 billion in claims, increasing 2% from the prior year. In fact, the company’s COVID financial support package for customers was the largest in its 45-year history.

To date, Medibank has provided $300 million, with $103 million in COVID permanent net claims savings being returned in premium relief. Adding to this, CEO David Koczkar said, “We stand by our commitment not to profit from COVID and will continue to return any related permanent net claims savings to our customers.”

This act of returning some of the premiums paid by customers was in recognition of the impact COVID has had on people’s ability to use their health insurance.

It appears premium return helped bolster the company’s brand among customers. In the year, Medibank customer advocacy rose 5.3 points to 37.1. Likewise, ahm gained 1.8 points to finish at 43.

Medibank share price wobbles on directors retirement

In addition to the annual report, Medibank also announced the retirement of two non-executive directors of its board.

According to the release, non-exec directors Christine O’Reilly and Peter Hodgett will retire from the board on 18 November 2021. This will be at the conclusion of the annual general meeting, of which, the directors have opted not to stand for re-election.

Commenting on the news, Medibank chair Mike Wilkins said:

I would like to take this opportunity to thank both Christine and Peter for their valuable contribution to our
company during their time as directors. They both joined the Board prior to Medibank’s listing on the
Australian Securities Exchange and helped guide the business through its transition from government-owned business to privatised company.

The search for two new directors is already underway.

The post Medibank (ASX:MPL) share price slips as customers hit 3.7 million appeared first on The Motley Fool Australia.

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

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The Syrah Resources Ltd (ASX: SYR) share price looks set to end the week with a disappointing decline.

In early trade, the graphite producer’s shares are down over 7% to $1.17.

Why is the Syrah share price sinking on Friday?

The weakness in the Syrah share price on Friday has been driven by the release of an announcement this morning.

According to the release, the company has been struggling to ship its product from the Balama Graphite Operation in Mozambique due to container ship shortages.

The release explains that approximately 12kt of natural graphite sales from Balama were planned to ship from the Port of Nacala in late September. However, container shipping market disruption means that this has been delayed to October.

As a result of this disruption, third quarter natural graphite sales are only expected to be 17kt. This compares to its previous guidance of 29kt for the quarter.

One positive, though, is that the weighted average sales price for the September quarter is expected to be higher than the June quarter.

Another positive is that management expects container shipping constraints impacting its sales and operations to ease through the fourth quarter. It notes that additional vessel capacity and container equipment for East Africa is being added.

This may allow the company to take advantage of the strong demand and forward contracting for Balama products it is experiencing. Management advised that its sales order book is currently underpinning 45kt of natural graphite sales in the fourth quarter. Furthermore, there is additional spot sales demand evident.

Looking further ahead, management appears confident that demand will remain elevated for some time to come. This is due to outlook for electric vehicle and anode demand remaining strong. It highlights that monthly global electric vehicle sales reached 0.5 million units in August, which represents over 100% growth year on year. Whereas Chinese anode production was ~60kt in August, up 50% over the prior corresponding period.

The Syrah share price is up 19% in 2021 despite today’s decline.

The post Why the Syrah (ASX:SYR) share price is tumbling 7% lower today 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 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 Bank of Queensland Limited (ASX: BOQ) share price has been struggling this week. BOQ shares had fallen by around 2.5% between Friday and Wednesday. It’s down around 1% in early trading today.

Whilst each bank has its own buyers and sellers, there has also been volatility for other banks in recent times such as National Australia Bank Ltd (ASX: NAB), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Bendigo and Adelaide Bank Ltd (ASX: BEN).

Has anything happened to BOQ?

This week, it was reported by the Australian Financial Review that ME Bank could get a penalty of up to $100 million for criminal charges.

It is alleged by ASIC that ME Bank made “false and misleading representations in letters to borrowers, and failed to notify customers when repayment rates changed.”

Why does this impact BOQ? The regional bank recently acquired ME Bank. Apparently BOQ found out about this during the due diligence stage, before the acquisition. It has reportedly already paid remediation of more than $100,000 for this matter.

ME Bank appeared in court on Tuesday and is expected to return in November.

Of course, the $100 million figure is seemingly the maximum that could be applied.

How important is ME Bank for the BOQ share price?

If a $100 million fine were applied, it would be a large chunk of ME Bank’s annual profit. BOQ bought ME Bank for $1.325 billion and this was 11.9x ME Bank’s FY20 cash underlying earnings.

BOQ decided to buy the bank to create a compelling alternative to the big banks. Management called the acquisition transformational and strategically aligned.

It will deliver “material scale”, broadly doubling the retail bank and providing more geographic diversification. As the name suggests, Bank of Queensland has a weighting towards the Sunshine State.

BOQ noted there is a clear pathway to a scaled, common, cloud-based digital retail bank technology platform.

In financial terms, management think ME Bank is compelling. It’s expected to add to cash earnings per share (EPS) in the low double-digits to mid-teens when including the full run-rate synergies in the first year (being FY22).

It’s also expected to add to return on equity (ROE) in cash terms by over 100 basis points, including the full run-rate synergies in the first year.

Referring to the synergies that BOQ mentioned, it’s anticipating annualised pre-tax synergies of between $70 million to $80 million.

Do analysts rate the BOQ share price as a buy?

Macquarie Group Ltd (ASX: MQG) is one of the brokers that currently rates BOQ shares as a buy – and there are several buy ratings at the moment.

The broker has a price target of $10 per share on the bank. That suggests that the BOQ share price could rise more than 5% over the next 12 months. The broker likes the acquisition of ME Bank.

Based on the FY22 earnings estimates from Macquarie, the broker puts the BOQ share price at 13x estimated profit. The projected grossed-up dividend yield for FY22 is 7.2%.

The post Why the Bank of Queensland (ASX:BOQ) share price is struggling this week appeared first on The Motley Fool Australia.

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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. 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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