According to Rabobank’s monthly agribusiness report, Australian commodity prices are looking to gain this year despite a record-breaking 2020.  

Australian agricultural commodities saw their highest prices on record last year, as prices soared approximately 18% between September 2019 and March 2020.  

The report found that, thanks to La Niña and demand from China, the majority of commodities produced in Australia are in for another good year.

The report follows ABARES’ prediction that  2020–21 will be the second most profitable season ever for Australian farmers.

Which commodity prices are expected to gain?

Canola

The price of canola is currently close to record-breaking ­– Western Australian genetically modified (GM) Kwinana Canola is trading 6% higher than last year, while non-GM canola is up 15%. These gains are due to strong Chinese demand and poor European and Canadian production.

Barley

A structural deficit in corn amidst a surge in Chinese demand is expected to indirectly raise prices for Australian barley.

Sugar

Australian sugar might be having a golden moment. With a late harvest season in Brazil likely and a lack of shipping containers muting Indian sugar exports – a nod to the intricacies of our globalised world – 2021’s sugar prices may be volatile.

Lamb

Lamb prices are at an all-time high for the second year in a row, but is not all good news, slaughter is at yet another low point. January lamb exports were also down, they have dropped 42% over the last 12 months.  

Which commodity prices are expected to fall?

Cattle

Cattle prices are caught in a stalemate. While producer demands are declining, a limited supply of cattle may have a stabilising effect on prices. Australian beef export volumes have fallen year to date, they’re currently down 37% overall, with the US and Chinese market down 55% and 56% respectively.

Wheat

If not comparing to 2020, Australia is in for a bumper year of wheat production. This comes as fears of frost damage to crops in the US loom. Rabobank predicts the market will be sensitive to downgrades of wheat crops globally.

Which ASX shares could be impacted by rising or falling commodity prices?

Here’s a quick look at 3 ASX shares dealing in the commodities discussed above:

• GrainCorp Ltd (ASX: GNC) stores and markets Australian barley, canola and wheat. It is also the largest producer of solvent and expeller canola oil in Australia. GrainCrop has a history of stable performance on the ASX, but it’s been slowly rising over the last 12 months, with a 24% return on investment. The GrainCrop share price is currently $4.34.
• Wingara AG Ltd (ASX: WNR) primarily markets fodder and hay for livestock consumption. It identifies exporting canola, barley, wheat and legumes as growth opportunities within the company. The Wingara share price is currently 14 cents, down 44% over the last 12 months and 31% year to date. Hopefully, the rise in demand and price of its commodities will help boost the company into the green. 
• Australian Agricultural Company (ASX: AAC) manages a herd of around 400,000 head of cattle in Queensland and the Northern Territory. The company owns 6.4 million hectares of land – roughly 1% of Australia’s land mass. The company’s share price is currently $1.16 with steady returns of 4% over the last 12 months and 5% year to date.

La Niña is providing a boost for Australian farmers

The rainfall outlook for the next few months is very promising. Most of Australia’s east coast is expecting 60% to 70% more than the median rainfall between March and May. The rest of the country is expecting around 50% more than the median.

More good news for farmers; soil moisture across most of Australia is above average. WA’s wheat belt and the interior of NSW are leaving the rest of the country in its dust. South-East Queensland and parts of Central WA are still suffering from severe rainfall deficits.

While La Niña has brought much-needed rainfall to Australia, it has been detrimental to food production in the Northern Hemisphere. The weather cycle has caused seasons to be unusually dry for most of the world, keeping prices firm over the coming months.

More reading

• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• These were the best performing ASX 200 shares last week

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

The post Will Aussie agricultural commodity prices see another record-breaking year? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3eudm5E

The A2 Milk Company Ltd (ASX: A2M) share price is coming under further pressure. It has fallen another 1% today.

What’s happening to the A2 Milk share price?

Since 2 March 2021, A2 Milk shares have steadily fallen from $9.54 to today’s $8.90 (at the time of writing.

Of course, the share price was at $10.45 just before the release of its FY21 half-year report.

The last month has seen negative news in relation to demand signs for A2 Milk.

For example, a week ago Synlait Milk Ltd (ASX: SM1) gave an update regarding its FY21 guidance. Synlait is a major supplier for A2 Milk. Plus, A2 Milk owns a large amount of Synlait shares.

In the update, Synlait said that there is ongoing uncertainty of A2 Milk’s expected demand for the rest of FY21 and FY22. Synlait also said that there continues to be global shipping delays which is expected for some time and could further impact FY21.

A2 Milk itself has said that it’s experiencing a lot of disruption.

The company said that FY21 half-year revenue was down 16% to $677.4 million but earnings before interest, tax, depreciation and amortisation (EBITDA) was down 32.2% to $178.5 million.

A2 Milk is suffering from challenges resulting from COVID-19 disruption experienced in the daigou and reseller channel with a flow on impact to the cross-border e-commerce (CBEC) channel.

There are some parts of the A2 Milk business that are still growing, such as its liquid milk business in North America and Australia, as well as local Chinese growth.

However, infant nutrition revenue in Australia and New Zealand fell 40.5% to $209.5 million for the half. This segment is suffering from pantry destocking after the strong sales in the third quarter of FY20, combined with reduced tourism from China and international student numbers as a consequence of COVID-19 travel restrictions.

But it’s the daigou channel sales that are particularly suffering, with the resellers being slower to re-enter the market. Whilst there was improvement in the channel, the recovery wasn’t as strong as the company had expected.

The A2 Milk share price has dropped 55% since the middle of July 2020.

How is A2 Milk going to turn things around?

One of the areas that A2 Milk continues to focus on is the China label channels, which is seeing high levels of growth. In the six months to 31 December 2020 it experienced 45.2% revenue growth to $213.1 million. The company said that its 12-month rolling market value share in Chinese mother and baby stores (MBS) increased to 2.4%, up by 0.7 percentage points from the prior corresponding period. The distribution also increased to 22,000 stores.

A2 Milk commented on this:

This performance is pleasing given the strategic importance and size of the channel and the increasing competitive intensity. There will continue to be an opportunity to gain market share given the strong resonance the brand has with consumers.

Is it time to buy at this A2 Milk share price?

There’s an investment saying that profit downgrades comes in threes, so only time will tell whether A2 Milk downgrades its expectations further from here. At the moment the company is expecting FY21 revenue in the order of $1.4 billion and a group EBITDA margin for FY21 to be between 24% to 26%, excluding acquisition costs.

Some brokers are quite bearish on A2 Milk shares, such as Ord Minnett and Citi, which have share price targets of below $8. Indeed, Citi’s target is $7.15 with lower margins expected over time.

However, Morgans thinks the company can recover as these conditions improve. It has a price target of $10.40 for A2 Milk shares.

More reading

• Where next for the A2 Milk (ASX:A2M) share price?
• Here’s why you should think twice about chasing the next hot ASX trend
• International Women’s Day: Which ASX companies are fighting gender inequality?
• Top brokers name 3 ASX shares to buy next week
• Synlait (ASX:SM1) share price crashes 7% on cancelled guidance

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and 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.

The post Is it time to buy at this A2 Milk (ASX:A2M) share price? appeared first on The Motley Fool Australia.

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

Cimic Group Ltd (ASX: CIM) shares are sliding lower today after the company revealed a downgrade to its credit rating. At the time of writing, the Cimic share price has edged 0.33% lower to $18.88. However, for context, the S&P/ASX 200 Index is also having a pretty flat day and is currently down by 0.02%.

Let’s take a look at what the construction giant reported.

Cimic’s credit rating worsens

In a statement to the ASX this morning, Cimic revealed that ratings agency Standard & Poors (S&P) has revised down the company’s credit rating. Previously, its rating was BBB/A-2 and it is now BBB/A-3. The agency did, however, revise its outlook on Cimic from ‘CreditWatch negative’ to ‘stable outlook’.

In its assessment, S&P viewed Cimic’s $2.2 billion sale of mining services provider Thiess negatively. The agency stated the move reduced “the business scale and diversity of Cimic…” and thus exposed it to more risk.

The credit analysts also highlighted that Cimic performed below expectations during FY20, even after incorporating the effects of COVID-19. Factoring in the Thiess sale, and a higher debt-to-earnings ratio that’s expected to remain for at least the next two years, ultimately led S&P to downgrade Cimic’s creditworthiness.

In some positive news for investors, S&P highlighted Cimic’s strength in the construction industry and the fact this should ultimately keep it in good stead.

From the report:

Cimic’s favorable end-market exposure and work in hand should help mitigate the group’s exposure to the operating risks, uneven project tenders, and inherent cyclicality of the construction industry.

The group’s proven ability to deliver large-scale and technically complex projects–including tunnels and bridges–supports its ability to win new contracts. Cimic’s work in hand as of Dec. 31, 2020, was about A$30.1 billion (adjusted for Thiess at 50%) and provides revenue visibility for approximately the next two years. Having said that, the lower level of work awarded in the past 12 months will likely weigh on revenues in fiscal 2021.

Cimic is also is in a good cash position, according to S&P’s report. Over the next two years, S&P believes the group will earn 1.5x more revenue than expenses “even if EBITDA declines by 30%.”

It also noted Cimic has “large cash reserves and [S&P] expect positive operating cash flow…”

Cimic share price snapshot

The Cimic share price has been tumbling over the past week as the fallout from the Greensill liquidation continues.

Shares in the company were trading at $26.00 as recently as 30 days ago. Since then, the Cimic share price has collapsed by 27.4%.

More reading

• Telstra (ASX:TLS) share price and others caught in Greensill insolvency
• The worst performing ASX 200 shares last week
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• These were the worst performing ASX 200 shares last week
• Why the Cimic (ASX:CIM) share price is edging higher today

Motley Fool contributor Marc Sidarous 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.

The post Cimic (ASX:CIM) share price slides after credit rating downgrade appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3et51yQ

It’s only been a year (give or take) since our last S&P/ASX 200 Index (ASX: XJO) market crash. So I’d wager not too many investors are expecting another one anytime soon. After all, why should they? The economy is recovering nicely and interest rates are at record lows. We also don’t normally have a market crash more frequently than every 4-5 years. Before March 2020, it was a long and happy 11-12 years since the global financial crisis, after all.

But one eminent commentator is warning investors that all might not be as rosy as it seems. According to reporting in The Sydney Morning Herald (SMH) this week, Peter Costello sounds alarm bells. Mr Costello is Australia’s longest-serving Treasurer (under the Howard government) and more recently is chair of the Future Fund – the ~$218 billion sovereign wealth fund of Australia.

According to the report, Mr Costello is concerned about the current monetary policy settings. Specifically, the near-zero interest rate of 0.1% that the Reserve Bank of Australia (RBA) maintains. He even warns that these extremely low rates could prove the “catalyst” for the next financial crisis if no “exit strategy” is developed:

I understand what’s going on, that we’re trying to reassure everybody that monetary policy and fiscal policy will be supportive for as long as it is needed. But I think the critical thing at the moment for central banks and governments is to think of the exit strategy… Because if we don’t have an exit strategy, we will be building up the next financial crisis, and you know what the next financial crisis will be? It will be asset bubbles.

Rates and bubbles

Earlier in the week, we reported how RBA governor Dr Philip Lowe has effectively shot down movements in the bond market pricing in interest rate hikes as early as next year. Dr Lowe and the RBA have previously indicated that rates will stay at their current level until 2024. This week, Dr Lowe stated that that is still his expectation. He justified this by saying that wage growth and inflation are expected to be subdued for years.

But Mr Costello seems to disagree, stating that “these rates are emergency rates. They are for emergencies”.

The Australian housing market’s performance appears to be feeding into Mr Costello’s argument this week as well. Today, the Australian Financial Review (AFR) reports that Australian house prices are now at new record highs. A recovering economy, the ongoing rollout of coronavirus vaccines and, yes, record low interest rates are estimated to be behind this move.

If house prices continue to rise even higher, it won’t be easy to discount Mr Costello’s prediction of asset price bubbles.

More reading

• Is it ok to buy ASX 200 shares at a 52-week high?
• ASX 200 down 0.9%: Flight Centre & Webjet jump, Afterpay sinks
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 drops, Zip down, Afterpay soars
• Here are some of the best performing ASX tech shares today

Motley Fool contributor Sebastian Bowen 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.

The post Peter Costello thinks this will spark the next ASX market crash appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2OmgQw7

Yesterday, Afterpay Ltd (ASX: APT) CEO Anthony Eisen discussed the need for a tech hub in Australia, as the company’s share price bounced back from the recent tech sell-off. The topic was a part of a broader conversation on ‘supercharging Australia’s digital future’ at the AFR’s Business Summit.

The billionaire co-founder of the buy now, pay later (BNPL) behemoth stressed Australia’s need for an environment conducive to tech success.

Afterpay is proof it can be done

Australia really is a beautiful place, but both Anthony Eisen and Xero Ltd (ASX: XRO)’s CEO Steve Amos think it could so much more in terms of technology.

In the past, some have argued that Australia lacks the talent to make the investment worthwhile. However, Eisen strongly disagrees with that notion, stating “What Australia lacks is not the talent, just the experience. When you are creating global platforms, getting the experience level in the country is a real key enabler.”

Eisen pointed to examples such as Silicon Valley and explained that these are not simply geographic destinations for tech success, rather they are mindsets.

Afterpay’s success was used as an example by Eisen to demonstrate that tech success at a global scale can be achieved right here in Australia. The co-founder added that government and industry support is needed for it to become a consistent occurrence.

Despite massive fluctuations in the Afterpay share price, the company has expanded throughout the world in just a matter of years. The progress likely wouldn’t have been possible if Australian regulators and/or the government blocked its rollout locally.

Could it already be in the works?

Encouragingly, in June last year plans were announced to develop an ambitious 40 storey tech-hub tower in Sydney. The development should commence by June this year. It has attracted the backing of Australian-founded Atlassian Corporation PLC (NASDAQ: TEAM). However, the building isn’t expected to be completed until 2025.

The desire for a local tech presence is not driven solely by egoism either. After decades of propagating globalism, many countries are beginning to shift towards a more ‘in-house’ approach. A move that is largely due to security concerns.

As reported by The Australian, Aussie tech hub instigator Alex Scandurra is leading the charge through his company Stone & Chalk. Recently, the not-for-profit fintech hub operator merged with the Australian Cyber Security Growth Network. Scandurra commented, “Increasingly we need to be able to develop companies in Australia as opposed to buying from overseas suppliers and vendors.”

Foolish takeaway

Now could be the best time for governments to invest in building tech hubs, given the high levels of unemployment still experienced in Australia. Afterpay’s success proves that Australia can be at the forefront of technology leaders. Meanwhile, the growing market in cybersecurity offers further opportunities for local success. 

Will the Afterpay success story continue as Paypal confronts the Australian BNPL market? Only time will tell.

More reading

• Is it ok to buy ASX 200 shares at a 52-week high?
• ASX 200 down 0.9%: Flight Centre & Webjet jump, Afterpay sinks
• Is Afterpay (ASX:APT)’s BNPL competition heating up?
• ASX 200 drops, Zip down, Afterpay soars
• Here are some of the best performing ASX tech shares today

Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Atlassian and PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Could Australia be the next tech hub? Afterpay (ASX:APT) CEO thinks it should be appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3rB6vej

The S&P/ASX 200 Index (ASX: XJO) may be out of form on Thursday but that hasn’t stopped the Metcash Limited (ASX: MTS) share price from pushing higher.

In fact, at one stage this morning the wholesale distributor’s shares climbed to a 52-week high of $3.67.

When the Metcash share price reached that level, it was up an impressive 42% over the last 12 months.

Why is the Metcash share price at a 52-week high?

There have been a couple of catalysts for the strong gain by the Metcash share price.

One was the release of a very strong half year result in December and the other has been the reaction to its update by brokers.

In respect to its results, for the six months ended 31 October, the company reported a 12.2% increase in group revenue to $7.1 billion. Including charge-through sales, the company’s revenue rose 12.3% to $8.1 billion.

And thanks to an improvement in its margins, Metcash reported an impressive 43% lift in underlying profit after tax to $129.6 million.

Can Metcash shares go even higher?

Although the Metcash share price has just hit a 52-week high, its gains may not be over.

Two brokers that have recently rated its shares as a buy are Goldman Sachs and Credit Suisse.

Last week Goldman retained its buy rating and $3.92 price target on Metcash’s shares. It is also forecasting a 16 cents per share fully franked dividend in FY 2021.

Whereas this morning, Credit Suisse retained its outperform rating and lifted its price target to $4.08. It has pencilled in a 15.9 cents per share dividend.

Both brokers note that Metcash’s businesses are benefitting from industry tailwinds and are eagerly anticipating the company’s strategy day event next week.

In respect to the latter, Goldman commented: “MTS is hosting a strategy day on the 16th of March. We expect to hear more about progress beyond mFuture and MTS’ foray into omni-channel retailing at this stage. We expect this roadmap to potentially be a strong catalyst for MTS in the near term.”

In addition to this, while not necessarily at this event, Goldman suspects that capital management initiatives could be announced in the near future.

“MTS has a very strong balance sheet. We expect capital management to become a potential topic during the FY21 results, and potentially become a catalyst to the share price,” it explained.

Based on the average of the two brokers’ price targets, the Metcash share price could still rise a further ~11% from here. In addition, the brokers also expect a dividend yield of ~4.4% over the 12 months.

This could make it worth considering, especially if you’re an income investors.

More reading

• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX

Motley Fool contributor James Mickleboro 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.

The post Metcash (ASX:MTS) share price hits 52-week high and could go even higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38sJZwO

When COVID-19 shut down international travel and all but put an end to interstate travel, S&P/ASX 200 Index (ASX: XJO) hospitality shares were among the hardest hit.

With people staying close to home, odds are they won’t be spending much time in luxury hotels. Or eating at the various restaurants these hotels offer. Or taking a punt at their gaming venues.

JobKeeper helped these ASX 200 companies remain afloat and retain key staff. But JobKeeper is winding down as the vaccine rollout begins, and the government eyes an end to the pandemic.

Enter the government tourism stimulus package

Yesterday’s announcement of a $1.2 billion government tourism stimulus package could be just what ASX 200 hospitality shares need.

In an effort to boost economic growth and revive the battered tourism and hospitality industries, the package includes the government providing 800,000 half-price airfares to tourism-dependent areas.

Here’s what Prime Minister Scott Morrison told Today:

We have got to get tourists on the ground and that’s what is going to keep people in their jobs. Just like we have seen in many states where people have been getting in their cars and going to those tourist destinations, we need to get fights to far-flung areas in Cairns, Gold Coast and northern Tasmania and ensure those visitors are getting there…

This package will take more tourists to our hotels and cafes, taking tours and exploring our backyard.

Indeed, with people paying only half price for their airfare, they’ll have more money to spend on a hotel room, their meals and even a little extra punting cash.

ASX 200 hospitality shares could see a welcome lift

A potential influx of cashed-up travellers to areas like the Gold Coast could spell good news for the likes of ASX 200 listed The Star Entertainment Group Ltd (ASX: SGR) and Crown Resorts Ltd (ASX: CWN), among others.

Among its holdings across Australia, Crown Resorts owns the Mantra Crown Towers Resort in the Gold Coast.

Star Entertainment also has assets in major cities and tourist destinations across the nation, including the Star Gold Coast located in, you guessed it, the Gold Coast.

The Crown Resorts share price is edging higher today, up 0.1% in early afternoon trade. Over the past twelve months, Crown shares are up 8.5%, despite some significant recent issues around the company’s corporate governance.

Star Entertainment shares are also moving higher today, up 1.3%. That puts the Star Entertainment share price up nearly 22% over the past full year.

More reading

• Should ASX 200 investors be worried about inflation? Janet Yellen isn’t…
• Crown (ASX:CWN) share price facing double Royal Commission trouble
• Exploring the golden window of opportunity for ASX ESG investors
• The Crown Resorts (ASX:CWN) share price shakes off Moody’s credit decision
• Crown (ASX:CWN) share price lifts as director resigns

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why ASX 200 hospitality shares could be about to enjoy a boost appeared first on The Motley Fool Australia.

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

The MetalsTech Ltd (ASX: MTC) share price is going bonkers today after the company announced its intention to capitalise on lithium.

The announcement stated that the mining company has had “strong interest” in its lithium assets and is assessing a commercialisation strategy into the battery metals sector.

After the company’s announcement, the MetalsTech share price shot up 75%, before settling to its current level of 17 cents. Its share price is currently still up 41% on yesterday’s close.

What did MetalsTech announce?

The company announced it is assessing a strategy to advance its high-grade lithium assets in Quebec ahead of recent interest.

MetalsTech has, in the past, received high-grade drilling results from the mine, finding prominent lithium and spodumene.

Not only is lithium predicted to be a massive gainer, but MetalsTech expects a recent spodumene supply shortage to increase over the coming years.

The company reports its Cancet project has high-grade near-surface spodumene mineralisation, making the mine a haven for the in-demand mineral. Further, potentially significant tantalum credits have been identified.

Cancet is MetalsTech’s most advanced lithium asset. The mine boasts excellent power, water and road infrastructure.

MetalsTech stated that by commercialising its Cancet project, it could focus on developing its Sturec Gold Mine. Sturec is the company’s flagship gold mine, located in Slovakia.

Management commentary

MetalsTech chair Russel Moran commented the company is “very fortunate” to have a portfolio of very prospective lithium assets.

Market sentiment towards lithium has surged and we are positioning our company to take advantage of this renewed interest. Cencet in particular is an exceptional high grade near surface lithium exploration opportunity and now is the time to strike.

To deliver maximum shareholder value, we are considering a range of commercialisation strategies designed to enable the Company to focus its efforts on the continued development of the Sturec Gold Mine whilst also allowing the lithium assets to be developed in the most efficient manner.

We have also been approached by several parties interested in acquiring Cencet outright so naturally the Company is reviewing all options in order to achieve the optimum outcome.

Other announcements

In addition to its intentions to commercialise Cencet, MetalsTech announced its newest appointment.

Chris Evans will be the company’s new executive of lithium operations. Evans is an experienced project delivery and operational management expert. He was responsible for building and bringing the Pilgangoora lithium mine and processing facility into operation.

MetalsTech share price snapshot

MetalsTech’s share price has soared recently, with today’s move being only the latest. While this morning’s 41% jump is the company’s largest move in recent times, it boasts a 240% return over the last 12 months. Although, since the beginning of this year the company’s share price has dropped 19%.

On current prices, MetalsTech has a market capitalisation of $17.5 million with approximately 146 million shares outstanding.

More reading

• Here’s why this ASX lithium share is soaring 10% today
• Here’s why the Amaero (ASX:3DA) share price rocketed 20% on open
• Is it ok to buy ASX 200 shares at a 52-week high?
• ASX 200 down 0.9%: Flight Centre & Webjet jump, Afterpay sinks
• Tesserent (ASX:TNT) share price jumps 14% on solid half-year results

Motley Fool contributor Brooke Cooper 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.

The post Why has the MetalsTech (ASX:MTC) share price boosted 41% today? appeared first on The Motley Fool Australia.

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

ASX lithium share Sayona Mining Ltd (ASX: SYA) is rocketing higher today. After posting gains of 20% in earlier trading, Sayona shares are currently sitting at 32 cents, up more than 10% for the day so far.

Below, we take a look at the emerging ASX lithium miner’s latest announcement regarding its Tansim Lithium Project.

What’s driving this ASX lithium share higher?

The Sayona share price is surging after the company reported it has acquired 90 new claims around its emerging Tansim Lithium Project in Quebec, Canada.

Lithium is a core element in modern batteries, like lithium-ion batteries. And Sayona noted that demand for lithium is accelerating alongside the growth in global battery demand.

With the new claims, Sayona now has 275 claims at its Tansim Lithium Project, covering more than 15,900 hectares. That’s an increase of 44% from its previous holding.

The company plans to start a drilling program encompassing 26 holes, with the aim of expanding the lithium mineralisation. Sayona reported the results of its earlier diamond core drilling program on 27 January.

The ASX lithium miner also revealed the appointment of Yves Desrosiers as director of its Authier Lithium Project. Desrosiers previously held the role of vice president of mining operations for BlackRock Metals and served as COO and general manager at North American Lithium (NAL). The company noted that NAL is “currently subject to a bid from Sayona”.

Sayona Quebec’s CEO Guy Laliberte said, “We are now in an excellent position to advance from exploration to development and ultimately downstream processing.”

Sayona Mining share price snapshot

Having not moved much for months, the Sayona share price really blasted off in early January. With today’s intraday gains factored in, Sayona shares are up by more than 200% over the past six months. That compares to a gain of 14% on the All Ordinaries Index (ASX: XAO) over the same period.

More reading

• Here’s why the Amaero (ASX:3DA) share price rocketed 20% on open
• Is it ok to buy ASX 200 shares at a 52-week high?
• ASX 200 down 0.9%: Flight Centre & Webjet jump, Afterpay sinks
• Tesserent (ASX:TNT) share price jumps 14% on solid half-year results
• Here’s why the Webjet (ASX:WEB) share price is flying

Motley Fool contributor Bernd Struben 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.

The post Here’s why this ASX lithium share is soaring 10% today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2OKSLPm

The Amaero International Ltd (ASX: 3DA) share price is performing strongly this morning following news of the company’s agreement with mining giant, Rio Tinto Limited (ASX: RIO). At the time of writing, the metal alloys producer’s shares are up 9.57% to 63 cents.

It’s worth noting that, when news broke out, Amaero shares reached an intraday high of 71 cents, up more than 23%, before some profit taking occurred.

What’s driving the Amaero share price higher?

The Amaero share price is pushing ahead today after the company updated investors with the positive announcement.

According to its release, Amaero has entered into an agreement with Rio Tinto to work together on the commercialising of Amaero’s high-performance, high-operating-temperature aluminium alloy (HOT AI).

Recently, Rio Tinto received a sub-licence to produce Amaero’s patented aluminium scandium alloys. Under the arrangement, Rio Tinto will exclusively provide Amaero with alloy billets to process into powder for 3D printing.

HOT AI is a breakthrough type of aluminium alloy that offers superior strength and durability at high operating temperatures. The lightweight material can be used in an array of defence and aerospace applications. In addition, it can also be employed in sports equipment industries such as the manufacturing of tennis rackets, baseball bats, bicycle frames, and more.

While Amaero holds the exclusive global commercial licence rights for HOT AI, the company applied for a broad international patent coverage in July 2020. It noted that it is now in the final stage of approval.

Amaero and Rio Tino plan to scale out the patented alloy’s production in Australia, the United States and other international markets.

The deal between both parties will run for a period of three years with options to extend for an additional three years. 

Management commentary

Amaero CEO Barrie Finnin welcomed the new partnership, saying:

We are very pleased to enter into this Agreement with Rio Tinto. This is an important step in the commercialisation of this high-performance aluminium scandium alloy that will be used in our breakthrough 3D metal printing technology. We look forward to working with Rio Tinto to progress the production of the alloy so we can commence the qualification process with key customers in the aerospace sector and other industries.

Rio Tinto sales and marketing vice president Tolga Egrilmezer went on to add:

As a global leader in aluminium and the first producer of high-quality scandium oxide in North America, Rio Tinto is uniquely positioned to provide a secure source of aluminium-scandium alloy to the market.

…This first sale demonstrates our ability to develop products that meet our customers’ needs, drawing on our technical expertise and world class assets.

The Amaero share price has accelerated over the past 12 months, delivering gains of 425% for investors.

More reading

• Is it ok to buy ASX 200 shares at a 52-week high?
• 5 things to watch on the ASX 200 on Thursday
• Why the Rio Tinto (ASX:RIO) share price is among the worst performers today
• Is this a better way to buy into the ASX mining supercycle?
• Macquarie sees upside for Rio (ASX:RIO) and BHP (ASX:BHP) share prices

Motley Fool contributor Aaron Teboneras 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.

The post Here’s why the Amaero (ASX:3DA) share price rocketed 20% on open appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2N6DkAR