• Why the Cimic (ASX:CIM) share price is moving higher today

    mining asx share price rise represented by female mining exec talking happily on phone

    The Cimic Group Ltd (ASX: CIM) share price is climbing in late afternoon trade following the global engineering company’s announcement regarding a contract award.

    At the time of writing, with only moments of trade left for the day, Cimic shares are swapping hands for $21.50, up 3.12%.

    What did Cimic announce?

    Investors are sending the Cimic share price higher after digesting the company’s latest contract win.

    Cimic today announced its subsidiary, UGL, has secured a contract to connect the first pumped hydro storage project in Queensland.

    UGL is a diversified engineering company in end-to-end asset solutions. The business delivers critical assets and essential services in power, water, resources, transport, defence and security, and social infrastructure.

    The project will see the design, construction and installation of a 186 kilometre high voltage transmission line from Kidston to Mt Fox. In addition, UGL will build a new 275kV switching station at Mt Fox.

    Cimic expects the contract to generate revenue of roughly $150 million for its wholly-owned subsidiary.

    Cimic group executive chair and CEO Juan Santamaria commented:

    This project will deliver a transmission line and switching station to connect the Kidston Clean Energy Hub to the national electricity grid – a vital step in the provision of power to Queenslanders and businesses. The award follows UGL’s involvement with other critical power infrastructure projects in regional areas, including Queensland’s CopperString 2.0 and South Australia’s Hill to Hill project.

    UGL managing director Doug Moss went on to add:

    UGL has an exciting pipeline of work in delivering high voltage power projects around Australia, providing communities with a safe and reliable power supply in some of our most remote regions. We are delighted to build on our relationship with Powerlink for this important renewable energy infrastructure project.

    Cimic share price review

    The last 12 months have dragged the Cimic share price down by around 17%, including a 16% drop on 10 February when the company released its full-year results. More recently, Cimic shares hit a 52-week low of $16.86 in April before climbing to their current levels.

    Cimic commands a market capitalisation of roughly $6.49 billion, with approximately 311 million shares outstanding.

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  • 2 buy-rated ASX lithium shares

    asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

    One area of the market which has been in fine form in 2021 has been the lithium sector. This has led to a number of lithium miners and explorers generating significant returns for investors.

    The good news for investors, is that brokers don’t appear to believe it is too late to invest in the sector. Here are two buy rated ASX lithium shares:

    Galaxy Resources Limited (ASX: GXY)

    According to a note out of Ord Minnett from last month, its analysts have a buy rating and $4.10 price target on this lithium miner’s shares. The broker has been looking at the Galaxy-Orocobre Limited (ASX: ORE) merger and sees a number of positives.

    Ord Minnett notes that the merged entity will become the fifth largest lithium producer globally based on 2030 production forecasts. It will also be the largest pure-lithium producer outside China.

    Its analysts commented: “While cost synergies appear limited given its high growth phase, its increased size, diversification and improving quality will give it improved power in price and offtake negotiations as a long term supplier.”

    Another broker that is positive on Galaxy is Cannacord Genuity. Its analysts currently have a buy rating and $4.95 price target on its shares.

    Pilbara Minerals Ltd (ASX: PLS)

    A note out of the Macquarie equities desk reveals that its analysts have recently retained their outperform rating and $1.50 price target on this lithium producer’s shares.  

    Macquarie believes that Australian lithium miners are well-placed to benefit from strong prices in 2021. This is due to growing demand for both lithium carbonate and lithium hydroxide in the China market. Its analysts see scope for prices to rise in the second half of the year due to increased smelter activity and the pull effect of rising prices.

    As with Galaxy, Cannacord Genuity is also bullish on Pilbara. It currently has a buy rating and $1.45 price target on its shares.

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  • Why the Amplia (ASX:ATX) share price is rocketing 41% higher today

    medical researcher holding laboratory equipment

    The Amplia Therapeutics Ltd (ASX: ATX) share price is one of the best performers on the ASX today. This comes after the pharmaceutical company announced positive news in trials to improve pancreatic cancer survival.

    At one point in intraday trade, Amplia shares were up a massive 56% to 32 cents. They’ve since pulled back slightly to 29 cents per share.

    The Australian company says its AMP945 inhibitor is able to boost the anticancer activity of standard treatment drugs by up to 27% in animal trials.

    The trials were undertaken in collaboration with Professor Paul Timpson from the Garvan Institute of Medical Research.

    Amplia Therapeutics is advancing the pipeline of Focal Adhesion Kinase (FAK) inhibitors for the treatment of cancers and fibrosis. FAK is increasingly important in the field of cancer immunology.

    What’s driving the Amplia share price higher?

    Investors are fighting to get hold of Amplia shares after the company released data from its latest trials using the AMP945 inhibitor on mice.

    In its announcement, Amplia advised that new data has shown AMP945 is able to improve anticancer activity.

    The trial combined oral doses of AMP945 with standard treatment drugs — gemcitabine and Abraxane — used in the treatment of aggressive pancreatic cancer.

    The new data found adding intermittent doses of AMP945 increased the survival rate by 27%.

    The mice that received AMP945, with gemcitabine and Abraxane, survived for a median of up to 28 days. This compared to 18 days for mice who didn’t receive the treatment.

    This follows previous studies revealing AMP945 enhances the activity of chemotherapy by increasing cell death and reducing the spread of cancer cells.

    What did management say?

    Garvan Institute of Medical Research Professor Paul Timpson said:

    The pancreatic cancer cells used in this experiment are extremely aggressive, so showing any beneficial effect on survival is very encouraging. A 25% improvement in survival in this model is very impressive and a level of improvement that we rarely see.

    Amplia CEO Dr. John Lambert added:

    These data further underpin the rationale for our planned Phase 2 clinical trial in pancreatic cancer. Earlier data told us that adding AMP945 to gemcitabine and Abraxane increased cancer cell death and reduced proliferation, and this new data tells us that those effects actually translate into prolonged survival in this model. We are strongly encouraged by these results.

    Amplia is planning a Phase 2 clinical trial in pancreatic cancer patients towards the end of this year.

    The Amplia share price has risen by around 120% during the past 12 months.

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  • The Santos (ASX:STO) share price is leaping 5% higher today. Here’s why

    happy oil worker in front of oil production equipment

    The Santos Ltd (ASX: STO) share price is climbing higher today, up almost 6% in afternoon trading.

    Yesterday we had a look into why S&P/ASX 200 Index (ASX: XJO) energy shares like Santos could be well-positioned to outperform this year.

    Today, here’s a brief follow up.

    What’s driving the oil price to multi-year highs?

    After crashing to lows of US$21.40 per barrel on 24 April 2020 in the wake of pandemic-driven global lockdowns, crude oil is trading at multi-year highs today.

    West Texas Intermediate (WTI) crude is at levels not seen since October 2018. International benchmark Brent crude is also at multi-year highs, currently trading at US$70.68 per barrel. That’s up 0.6% since I penned yesterday’s article and up 8.5% since 20 May.

    The rising crude price, and soaring Santos share price, reflects resurgent demand from a reopening world. This has been spurred by dwindling crude stockpiles and a sluggish uptick in new supply from US shale producers.

    And, of course, there’s OPEC+, which includes Russia.

    The organisation, led by Saudi Arabia, delivered large supply cuts during the past year. Only recently has it been moving to carefully open the taps a little wider.

    As Bloomberg reports, “OPEC+ ministers agreed Tuesday to press ahead with an increase of 841,000 barrels a day in July, following hikes in May and June…”

    OPEC did not comment on its output expectations beyond July.

    Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman stoked energy bulls’ sentiment by adding that demand for crude “has shown clear signs of improvement”.

    One factor that’s been weighing on oil investors’ minds is Iran. Namely, whether the oil-rich nation will work out its nuclear agreement with the United States. That would likely see US sanctions on Iran’s oil exports lifted, and could add enough supply to global markets to sink prices.

    But as Bloomberg noted, there “was an indication that talks to revive a 2015 nuclear accord with Iran has been delayed for now. An Iranian official said a deal is now expected to be finalised in August.”

    COVID-19 remains the big wild card for oil prices in the months ahead. If the world can stay ahead of the virus and continue on the path of reopening, crude oil prices and ASX energy shares could continue to enjoy some strong tailwinds.

    Santos share price snapshot

    With today’s intraday gains factored in, the Santos share price is up 32% over the past 12 months, outpacing the 23% gains posted by the ASX 200.

    Year-to-date, the Santos share price has continued to outperform, up more than 13% so far in 2021.

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  • What were Bank of Queensland (ASX:BOQ) shares up to last month?

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    Last month, the S&P/ASX 200 Index (ASX: XJO) had a pretty great time. Not only did the ASX 200 put on an additional 1.9% over May, it also hit not one, but two, new record highs.

    This was driven by many ASX banking shares. The big four ASX banks make up 4 of the ASX’s 6 largest companies. As such, their movements are extremely important to how the ASX 200 performs overall. And many banking shares had a top month.

    Most prominent was the Commonwealth Bank of Australia (ASX: CBA), which managed to hit $100 a share for the first time in May. But what of the smaller ASX banks? Well, let’s check out Bank of Queensland Ltd (ASX: BOQ) today.

    So, Bank of Queensland has had a pretty solid year of performance over the past 12 months. It has managed to add around 69% to its value over this period, not including dividend returns. It’s also up a healthy 17.8% year to date.

    But what of May? Well, BOQ shares started the month at a price of $9.02 a share. By Monday afternoon, the bank was asking $8.95 a share. Yep, Bank of Queensland had a red May, losing 0.78% of its valuation.

    More money, ME problems

    Well, perhaps the largest factor that might have been weighing on Bank of Queensland shares over May was the woes facing its most recent acquisition – ME Bank. Back in February, BOQ announced that it would poach the formerly mutual Me Bank for a price of $1.35 billion. This was funded via a capital raising program shortly after. It’s that acquisition that might have caused some consternation from investors in May.

    That’s because we learnt on 27 May that the Australian Securities and Investments Commission (ASIC) was filing charges against Me Bank in the Federal Court of Australia. As my Fool colleague Brooke Cooper comprehensively covered at the time, ASIC is alleging that BOQ breached laws relating to giving false or misleading information, as well as the National Credit Code. These alleged incidents are said to have taken place between September 2016 and September 2018.

    It’s worth noting that Me Bank has yet to have its day in court.

    About the BOQ share price

    Since the end of May, Bank of Queensland shares have lost another 1%, and are going for $8.87 at the time of writing, up 0.05% for the day. That share price gives BOQ a market capitalisation of $5.69 billion, a price-to-earnings (P/E) ratio of 37 and a trailing dividend yield of 3.23%.

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  • Why the People Infrastructure (ASX:PPE) share price hit an all-time high

    group of business people cheering.

    People Infrastructure Ltd (ASX: PPE) shares jumped to record territory this morning after the company announced it is taking majority shareholdings in two “highly complementary” businesses.

    In early trade, the People Infrastructure share price briefly hit an all-time record high of $4.80 before partially retreating. At the time of writing, the company’s shares are trading 0.22% higher at $4.55 each.

    People Infrastructure share price gets a boost

    Judging by today’s People Infrastructure share price performance, investors appear pleased with the company’s latest investments. In an announcement to the ASX before market open this morning, People Infrastructure advised it has entered into agreements to acquire shares in Techforce Personnel and Vision Surveys (QLD).

    Techforce Personnel

    Techforce Personnel is a provider of casual workers in Western Australia and South Australia. The company provides staff to a range of industries, with a focus on industrial services and mining sectors.

    People Infrastructure will acquire 79.3% of the shares in Techforce Personnel for $13.1 million in cash and $250,000 in People Infrastructure shares. The company also advised, “Up to a further $2.72m will be payable as deferred cash consideration after completion…”

    According to People Infrastructure, Techforce Personnel’s services are highly aligned with its own industrial and services business. The added benefit the company sees with its investment is that Techforce Personnel will provide greater exposure to People Infrastructure’s underserved states of Western Australia and South Australia.

    Techforce Personnel has a strong track record of organic growth, with a compound average growth rate (CAGR) for revenue of 23.7% over the last three years.

    The acquisition is expected to contribute $5.8 million in earnings before interest, taxes, depreciation, and amortisation (EBITDA) in FY22.

    Vision Surveys

    Vision Surveys is a multi-discipline surveying business servicing metropolitan and regional Queensland. The company is focused on sectors including infrastructure, construction and residential development. People Infrastructure has entered into a binding agreement to purchase 75% of the shares in the company.

    The acquisition will comprise a $6.7 million upfront payment, made up of 75% cash and 25% People Infrastructure shares. A further $3.8 million may be payable as deferred consideration over three tranches based on EBITDA hurdles across FY22, FY23 and FY24.

    Vision Surveys has a similar strong track record of organic growth with revenue CAGR of 14% over the last three years.

    Earnings accretive acquisitions

    The acquisitions are expected to be approximately 19% earnings-per-share (EPS) accretive, adding a meaningful kick to People Infrastructure’s financial performance. The potential boost in earnings, alongside the strong organic growth profile of the two acquired companies, appears to be having a positive effect on the People Infrastructure share price today.

    In response to the acquisitions, People Infrastructure CEO Declan Sherman said:

    The acquisition of Techforce Personnel and Vision Surveys Qld are highly complementary to our existing business. Both businesses are well established in their regions, have strong customer relationships, and proven leadership teams who have successfully grown these businesses over several years. Through being part of a larger group, these businesses will be able to accelerate their growth through adding service lines, sharing customers and growing geographically

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  • Why Infomedia, Megaport, Regis, & WISR shares are sinking

    white arrow dropping down

    The S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher on Wednesday. In afternoon trade, the benchmark index is up 1% to 7,212.3 points.

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

    Infomedia Limited (ASX: IFM)

    The Infomedia share price is down 9% to $1.39. This appears to have been driven by profit taking from some investors after a particularly strong gain on Tuesday. The software company’s shares are now trading roughly in line with where they were prior to yesterday’s gain, which was driven by a solid trading update.

    Megaport Ltd (ASX: MP1)

    The Megaport share price is down 4% to $14.86. While the network as a service company released an investor update this morning, this decline appears to have been driven largely by broad weakness in the tech sector. After all, the S&P/ASX All Technology Index (ASX: XTX) is down just over 1% this afternoon.

    Regis Resources Limited (ASX: RRL)

    The Regis Resources share price has fallen 3% to $2.58. This follows a slight pullback in the spot gold price overnight. Regis isn’t the only gold miner that is trading lower today. At the time of writing, the S&P/ASX All Ordinaries Gold index is down 0.8%.

    WISR Ltd (ASX: WZR)

    The WISR share price has returned from its trading halt and crashed 14% lower to 27.5 cents. This morning the non-bank lender announced the completion of an institutional placement. Wizr raised $50 million (before costs) through an institutional placement. The company raised the funds through the issue of 200 million new ordinary shares at a price of 25 cents each. This represents an 22% discount to its last close price. Management notes that the proceeds will allow Wisr to build a company of significant size, scale and impact in the Australian market.

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  • May was a rollercoaster ride for the Vulcan (ASX:VUL) share price

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    Shareholders in Vulcan Energy Resources Ltd (ASX: VUL) had a rollercoaster ride in May.

    After opening the month at around $8.29, shares in the lithium producer dipped to $6.36 before recovering to finish the month relatively flat.

    Let’s take a look at what’s been driving the Vulcan share price this past month.  

    What’s happening with the Vulcan share price?

    Vulcan shares had an astonishing April, jumping 32% for the month. However, May proved to be far more volatile.

    The 1 May price of $8.29 tumbled to a low of $6.36 by mid-May. During this period, the company didn’t release any price-sensitive news that could explain the decline.

    However, at the end of April, Vulcan announced the acquisition of German geothermal surface consultancy company Global Engineering and Consulting (Geo-Co). The purchase, which came at a cost of 325,000 fully paid ordinary shares in Vulcan, may explain the share price drop as investors mulled the decision.

    Other factors could include a weaker spot-lithium price and investors rotating out of the resource sector.

    By late May, the Vulcan share price was lifted out of its lull after the company announced another key milestone for its Zero Carbon Lithium project.

    In a market update, Vulcan announced it had achieved target specification for a direct lithium extraction (DLE) feed into its pilot plant. The company noted its team was able to recover more than 90% for lithium chloride from brine in the Upper Rhine Valley.

    Vulcan’s management lauded the result and noted intentions to scale up lithium extraction processes. It also highlighted the company’s Zero Carbon Lithium project and its strategy to supply the European battery market for electric vehicles.

    Snapshot of the Vulcan share price

    Vulcan is a lithium developer with its flagship Zero Carbon Lithium project located in Germany’s Upper Rhine Valley. The company has the ambitious aim of becoming the world’s first lithium producer with net-zero greenhouse gas emissions.

    Its Zero Carbon Lithium project aims to produce battery-quality lithium products from its combined geothermal energy and lithium resource.

    The Vulcan share price also reflects demand for lithium and the growing electric vehicle market. After opening the year at $2.77, shares in Vulcan flew to an all-time high of $14.20 in early January.

    Since then, the Vulcan share price has waned and remained relatively flat. Despite the subdued price action, shares in Vulcan are up more than 185% year to date.  

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  • ASX uranium shares are surging today

    woman and two men in hardhats talking at mine site

    ASX uranium shares are breaking out today, with some of producers and explorers making multi-year highs.

    Why is uranium in the hot seat?

    Uranium is mainly used as fuel for nuclear power reactors for electricity generation. Nuclear power isn’t exactly a “renewable” source of energy, but it generates near zero emissions. Uranium is expected to play a significant role in the global shift move to lower emissions over the next 30 years.

    If you look at the 10-year charts of many ASX uranium shares, it isn’t uncommon for valuations to have declined by more than 90%. This is because the spot price of uranium has tumbled from peaks of US$137/lb in 2007 to lows of US$20/lb, sending many ASX uranium stocks out of business or into hibernation.

    There has been recent resurgence in both investor interest in uranium as a green source of energy and an uptick in spot prices to ~US$30/lb.

    In a capital raising presentation from Paladin Energy Ltd (ASX: PDN), the company flagged that current primary uranium supply is unable to meet current demand. It highlighted that nuclear power is currently responsible for 10% of global electricity production and the second largest source of global clean energy with almost zero carbon emissions. The company believes the uranium market is in a deficit with an even greater supply shortage to emerge in the medium to long term.

    The increasing demand for uranium and uptick in prices could be a catalyst for the resurgence in ASX uranium share prices.

    ASX uranium shares on the move

    The Deep Yellow Limited (ASX: DYL) share price has surged 13.10% to 95 cents at the time of writing. Its shares previously hit 95 cents on 10 May, which marks an 8-year high for the uranium explorer.

    Deep Yellow operates its flagship Tumas Project located in the premier uranium mining jurisdiction of Namibia with a long history of mining. The company currently undergoing its definitive feasibility study to achieve its goal of a 20-year life-of-mine operation.

    The Devex Resources Ltd (ASX: DEV) share price is slightly down today but has surged some ~65% in the last five trading sessions. The company completed a $7.97 million capital raising to accelerate its key diversified exploration projects across Australia. This includes its Nabarlek Uranium and Gold-Copper Project in Northern Territory. The update advised that renewed field exploration was going to commence shortly to follow up several new and under-explored uranium prospects.

    The Paladin Energy Ltd (ASX: PDN) share price has jumped 14% to an 8-year high of 57 cents at the time of writing. Back in March, the company successfully completed a $192.5 million capital raising to pay back debts and restart its mine production and optimisation.

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  • Why the Straker (ASX:STG) share price is in a trading halt

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    The Straker Translations Ltd (ASX: STG) share price isn’t going anywhere on Wednesday.

    This morning the translations company’s shares were placed in a trading halt.

    Why is the Straker share price in a trading halt?

    Straker requested a trading halt this morning so that it could launch a fully underwritten placement to institutional, professional, and sophisticated investors and accelerated non-renounceable entitlement offer.

    According to the release, the company is seeking to raise A$20 million. This comprises a A$10 million placement and a A$10 million entitlement offer. It is raising the funds at $1.90 per new share, which represents an 18.5% discount to the current Straker share price.

    The company advised that the proceeds from the equity raising will be used to accelerate its growth strategies, pay down debt, and pay offer costs.

    In respect to its growth strategies, these include capitalising on its IBM opportunity and targeting other enterprise customers, enhancing its SaaS offering for enterprise customers, increasing its share of existing customer spend, and continuing its active acquisition strategy.

    Management also took this opportunity to remind shareholders of its expectations for FY 2022. Straker has provided guidance of revenue of NZ$50 million, which will be an increase of 60% on FY 2021’s revenue. The company is also expecting improvements in its gross margin from 53% currently.

    Bailador to take part in capital raising

    This afternoon Bailador Technology Investments Ltd (ASX: BTI) revealed that it will be taking part in the capital raising.

    Bailador, which is already a major shareholder, will be investing a minimum of A$1.2 million through its current entitlements under the entitlement offer and up to a maximum of A$6.2 million through a A$5.1 million sub-underwriting arrangement in the entitlement offer.

    The final amount invested by Bailador remains subject to the level of take-up of entitlements by existing eligible Straker shareholders.

    Bailador Co-Founder and Managing Partner, Paul Wilson, commented: “Bailador is pleased to be supporting Straker’s equity raising to help execute on its future growth plans, as disclosed at Straker’s financial year 2021 results last week. We are confident that Straker will deliver on these growth plans and as a result, Bailador is seeking to take up more than its pro-rata share of the equity raising, subject to final demand from existing investors.”

    The Straker share price is up 59% since the start of the year.

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