It is often said that successful investing involves a fair degree of ‘investing for tomorrow, not today’. If you can find a small company today that will grow to become a large company in the future, that’s usually where some of the ‘real money’ is made on the share market.

Buying Amazon.com Inc (NASDAQ: AMZN) shares at US$100 in 2009. Or A2 Milk Company Ltd (ASX: A2M) shares at 50 cents back in 2015. That’s the stuff of legend. As such, a significant army of investors out there are always on the hunt for the ‘next Amazon’. And finding the next Amazon also usually involves picking a field, a trend, that that company will grow into. It was impossible to envisage Amazon becoming the giant it is today without first understanding all of the potentials that the internet could bring.

But finding a lucrative field isn’t as easy as you might first think. Every few years we hear stories about ‘the next big thing’ in investing. It always follows a pattern too. Investors think they have found ‘a new thing’ that will revolutionise everything. They then rush out and buy shares of companies that may or may not have something to do with that ‘thing’. Then, it usually implodes on itself when investors realise that ‘the thing’ doesn’t actually make any money. This happened with the internet in the early 2000s. The ‘dot-com crash’ was the result of investors psyching each other up for the unlimited potential of internet companies. It was a ‘things really are different now’ moment. Until it wasn’t. Internet companies spent most of 2000, 2001 and 2002 coming down from those highs. It was only a few years later that the real internet winners like Amazon became really dominant.

Big trends don’t always mean big profits

We’ve seen this paradigm play out over and over again, slightly differently each time. Remember 3D printing? That didn’t last long. Or the lithium craze of 2017? Sure, lithium probably will have some kind of supercycle one day. The world is still irrevocably moving towards the electrification of transport, which will require a lot of lithium. But it certainly didn’t happen in 2017, when everyone thought it was.

Some successful trends don’t even make anyone money at all. Warren Buffett is famous for describing the airline business as a place where everyone loses money. He even once joked that if investors had been at the first aircraft flight, they should have shot it down due to all the money that the entire industry has cost investors. The coronavirus pandemic certainly wouldn’t have helped that equation. Think about that though, a massive industry that people from all around the world (used to) use, that makes no money for its investors. That’s something you probably don’t want to be a part of.

So when you’re considering the next investment that you think is poised to benefit from ‘a trend’, history suggests you think twice. For every one real success story, there are a thousand planes that never make it into the air.

More reading

• International Women’s Day: Which ASX companies are fighting gender inequality?
• Top brokers name 3 ASX shares to buy next week
• Leaving growth? Don’t get caught by value traps when value investing
• This was the week that ASX dividend shares proved their worth
• Why is everyone talking about bond yields?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended Amazon. 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 should think twice about chasing the next hot ASX trend appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2PHYy98

The TNG Ltd (ASX: TNG) share price is climbing today after the company announced its Mount Peake project was awarded Major Project Status.

TNG is an Australian resource and mineral processing technology company. Minister for Industry, Science and Technology, the Honourable Karen Andrews MP, awarded the project its status due to its proposed significance in growing and diversifying Australia’s critical minerals industry.

At the time of writing, TNG’s share price is 9.7 cents.

A closer look at the Mount Peake project

The Mount Peake project, solely owned by  TNG, is set to be a world-scale strategic metals asset. It will produce titanium dioxide, vanadium pentoxide and iron oxide through TNG’s patented, energy-efficient and cost-effective production measures.

The project is to be located across two Northern Territory sites – approximately 235km north of Alice Springs – and a processing facility in Darwin. It is anticipated that the project will make a significant contribution to Australia’s critical minerals industry, with a mine and processing facility life of 37 years.

According to today’s announcement, the project will create up to 1,600 jobs during construction, 1000 on-going positions and contribute to economic development in the Northern Territory.

The project plans to not only deliver new mining infrastructure to the Northern Territory, but non-processing infrastructure like haul roads, office facilities and infrastructure for logistics and utilities.

As well as its mining sites, the project will incorporate the creation of the Darwin TIVAN Processing Facility (DPF). The TIVAN process, patented by TNG, promises to be more energy-efficient and cheaper than traditional recovery processes. The DPF will treat magnetite concentrate, extracting and producing minerals to satisfy the demands of the renewable energy sector.

Further, TNG is in partnership with German-based engineering firm SMS group to develop carbon-neutral hydrogen production technology to be applied to the TIVAN process.

TNG is in the process of seeking confirmation of the final cost of the Beneficiation Plant and the DPF. After which, it will seek out an Engineering Procurement Construction proposal for delivery of the facilities.

Commentary from management

TNG’s managing director and CEO Paul Burton said the award of Major Project Status is testament to the substantial benefits expected to be delivered by Mount Peake.

Securing the support and involvement of the Australian Government in helping to facilitate the development of a global scale critical minerals project like Mount Peake is significant for TNG and its shareholders. It will assist in ensuring certainty of process for the remaining permitting and approvals required both for the Mount Peake mine site and the Darwin TIVAN Processing Facility and represents an important endorsement of the Project as we embark on the next stages of project financing.

Additionally, TNG and the Mount Peake Project is well positioned to contribute to the growing demand for sustainable green energy through TNG’s newly established VRFB business unit and its strategic partnership with SMS group to develop a CO2-neutral technology for green hydrogen production.

TNG share price snapshot

The TNG share price is currently up 33% over the past 12 months, but is flat so far this year.  

It has a market capitalisation of approximately $113 million and 1.25 billion shares outstanding.

More reading

• Why the Westpac (ASX:WBC) share price just hit a 52-week high
• 3 small cap ASX shares that powered higher in February 2021
• Why the Cogstate (ASX:CGS) share price is rising today
• Telstra (ASX:TLS) share price and others caught in Greensill insolvency
• Here’s why the Zip (ASX:Z1P) share price is down 8% today

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 the TNG (ASX:TNG) share price is up 7% today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3bqgr4x

Although it is on course to end the day lower, at one stage today the Westpac Banking Corp (ASX: WBC) share price was pushing higher.

In fact, the banking giant’s shares were pushing so high they climbed to a 52-week high of $25.28.

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

Investors have been scrambling to buy Westpac shares since the release of its first quarter update last month. And it isn’t hard to see why.

For the three months ended 31 December, Australia’s oldest bank reported a $1.97 billion first quarter cash profit. This was more than double the quarterly average cash earnings of $808 million it recorded during the second half of FY 2020.

Even when adjusting for notable items, Westpac’s growth was impressive. The bank’s normalised first quarter cash earnings were up 54% over the second half average.

Those normalised earnings exclude the positive impact of a COVID impairment reversal.

Westpac reported an impairment benefit of $501 million for the three months. This was due to improved credit quality, stronger economic outcomes, and a better economic outlook.

It noted: “While uncertainty remains around the impact of local COVID outbreaks, there is cause for optimism. The economy is recovering, consumer and business confidence is strong, and the labour market has been much more resilient than expected.”

What else is driving the Westpac share price higher?

Also giving the Westpac share price a lift was the reaction to its update by the broker community. The likes of Citi, Goldman Sachs, and Morgans have buy ratings on the bank’s shares, to name just three.

Morgans is arguably the bullish of them all and currently has an add rating and $27.50 price target on the bank’s shares.

Based on this, the Westpac share price could soon be making a new 52-week high. This price target implies potential upside of approximately 11% over the next 12 months.

Positively, Morgans is also forecasting a fully franked 5% dividend yield on top of this.

This could make it one to consider if you haven’t already got meaningful exposure to the banking sector.

More reading

• ANZ (ASX:ANZ) hits 3 year high. Can we thank dividends?
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• Beat low interest rates with this outstanding ASX dividend share
• Brokers name 3 ASX shares to buy right now
• ANZ (ASX:ANZ) share price outperforms on broker “buy” upgrade

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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 the Westpac (ASX:WBC) share price just hit a 52-week high appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3rsqcF9

There are a few small cap ASX shares that did really well in February 2021 for the NAOS Small Cap Opportunities Company Ltd (ASX: NSC) portfolio.

How does Naos Asset Management invest?

Naos is led by chief investment officer (CIO) Sebastian Evans. NAOS Small Cap Opportunities is one of the listed investment companies (LIC) operated by Naos.

That particular LIC looks at businesses with market capitalisations between $100 million and $1 billion.

The fund manager has a number of investment focuses. It looks for businesses that are good value with long term growth potential. With its portfolio, Naos believes it’s better to have a quality portfolio rather than numerous holdings. That’s why it only holds around 10 positions in each fund, with each ASX share representing a high-conviction position.

Naos invests in the small cap ASX shares for the long-term. It considers the performance and the liquidity of its positions whilst ignoring the index. Performance can sometimes be quite variable when compared to the index.

It looks to invest purely in industrial companies whilst also considering the ESG factors (environmental, social and governance).

Enero Group Ltd (ASX: EGG)

Enero is a collection of businesses relating to marketing and communications.

Naos said that Enero released the strongest result out of all of the businesses in its portfolio. Enero’s net profit after tax went up 129% compared to the prior corresponding period. The earnings before interest, tax, depreciation and amortisation (EBITDA) increased to 30% and this helped increase the fully franked interim dividend to $0.105 per share.

The fund manager said that all of the small cap ASX share’s public relations and creative agency businesses have shown significant earnings resilience as most of their client base operates within the technology, healthcare and government sectors which have continued to operate relatively normally in a COVID-19-affected environment.

The other main earnings driver was the 50.1% holding of ad-tech business OB Media, which is based in the US.

Naos believes OB Media is on track to earn over AU$22 million of EBITDA, compared to just a couple of million just a few years ago. OB Media has been investing in its technology and people, as well as building relationships with Google and Microsoft. The fund manager said that OB Media is now benefiting from this investment. On a standalone basis, Naos thinks OB Media is worth more than $300 million because it is a high growth technology business that makes a good amount of profit with a negative working capital balance.

COG Financial Services Ltd (ASX: COG)

This small cap ASX share is made up of two different businesses, an asset finance broking arm and a lending arm.

COG announced an initial half-year dividend. Naos said the ASX share’s low capital intensity nature of the business has resulted in the business being in a strong net cash position with plenty of flexibility for both capital management and further acquisitions.

The company also provided further clarity about the imminent rollout of its insurance broking capability. The fund manager thinks insurance broking could match the earnings generated by the finance broking divisions when taking a three to five year view.

Big River Industries Ltd (ASX: BRI)

Big River is an integrated Australian timber products small cap ASX share. It’s involved from the procurement of raw materials all the way to the sale of finished products to end users.

Naos said that said that Big River Industries’ result was strong, with EBITDA growing by 15% and was not affected by COVID-19.

The fund manager pointed out that some new information was provided with the result that could more than double its current annualised net profit run rate of $6.2 million.

The acquisition of Timberwood remains on track with the company trading well and forecast to contribute close to $3 million net profit based on the current run rate.

Naos said the net cash inflow resulting from the closure of the Wagga Wagga facility and subsequent relocation to Grafton is expected to be around $10 million with net profit accretion of around $1.5 million.

The fund manager continues to see the economic backdrop being beneficial for the company which may further contribute to the growth in future earnings.

More reading

• Enero (ASX:EGG) share price falls despite being up over 45% in a month
• 2 little-known small cap ASX share picks by this fund manager

Motley Fool contributor Tristan Harrison owns shares of NSC. 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 3 small cap ASX shares that powered higher in February 2021 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3rqA9mr

The CogState Limited (ASX: CGS) share price is currently rising as the company announced a business update to the market. Shares in the small cap healthcare company are currently rising by 5.82%. This takes the Cogstate share price to $1.00.

Business update

The Cogstate share price is rising today as the company announced a business update regarding the company’s quarterly sales results.

The company announced that its clinical trials sales contracts executed in the third quarter of FY21 total US$10.7 million. This means Cogstate’s total value of sales executed so far this financial year amounts to US$33.3 million.

Cogstate half year report

Cogstate released its business report today following the announcement of the company’s half-year report. Management also outlined its outlook in the report.

During the first half, the Cogstate executed contracts of $22.6 million. Notably, this was down on the $26.9 million received in the prior corresponding quarter (pcp). However, this did not stop the company’s revenue from rising strongly. For the half, group revenue increased by 59% to $13.9 million.

As a result of this strong growth, the company’s earnings also rose on its last half. Net profit after tax (NPAT) was -US$0.4 million compared to -US$2.7 million in the prior half.

In regards to the company’s cash flow and balance sheet, net cash flow from operations was US$13.2 million. With its balance sheet also sitting healthily at $18.5 million.

Management commentary

Commenting on the half-year result, Cogstate CEO, Brad O’Connor, said:

Cogstate delivered a strong improvement on 1H20 with revenue benefitting from the significant increase in Clinical Trials sales contracts over the last 18 months and cashflow benefitting from an upfront licence fee payment associated with our now global partnership with Eisai Co. Ltd in the Healthcare segment.

Outlook for Cogstate

Looking forwards the company is projecting big things thanks to its recent global licence agreement with Eisai. As a result, contracted future revenue has increased to $74.8 million, which is up 96% on pcp.

For the end of this financial year, Cogstate is aiming to be NPAT positive. However, crucially this assumes that its ongoing clinical trials are unaffected by the global pandemic.

More reading

• 3 small cap ASX shares that powered higher in February 2021
• Telstra (ASX:TLS) share price and others caught in Greensill insolvency
• Here’s why the Zip (ASX:Z1P) share price is down 8% today
• The 3 highest paying ASX 200 dividend shares
• Why the Queensland Pacific Metals (AXS:QPM) share price is climbing today

Motley Fool contributor Daniel Ewing 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 the Cogstate (ASX:CGS) share price is rising today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3rrR48d

The Telstra Corporation Ltd (ASX: TLS) share price, along with numerous other Australian companies, will be watched with a close eye at the moment. This comes as the Greensill Capital collapse ripples through to its clients.

What is Greensill Capital and what happened?

Founded in 2011 and headquartered in London with offices globally, Greensill Capital is the supply-chain financing brainchild of Lex Greensill. The firm tweaked an old concept called ‘factoring’. This is where a supplier fast tracks its receivable payments through a financier. The financier later recovers the payment from the larger corporation.

The tweak to the model meant that responsibility for the debt shifted from the supplier to the company. This enabled Greensill to change the terms of repaying debts. Much like the housing collapse in the GFC, Greensill proceeded to bundle and securitise these supply chain debts and sell them to investors.

Cracks propagated in the financing business last year. Greensill became reliant on a handful of large corporations, which meant the risk profile was quite concentrated. As a result, when COVID-19 impacts were felt by these businesses, insurers were made to cough up the costs.

Hence, with a mix of investors running for the exit from the securitised debts and insurers refusing to renew coverage for the debts, Greensill is left on the brink of insolvency.

Impacts on other ASX listed companies

As reported by The Australian Financial Review (AFR), the barrage has fallen on Greensill’s clients. Those in the firing line include Telstra, CIMIC Group Ltd (ASX: CIM), and the Australian Rail Track Corporation (ARTC).

The AFR stated:

Invoices for payments owed by the three companies were among the top 10 holdings at the end of January of four supply chain finance funds worth $13 billion that propped up Lex Greensill’s empire and were managed by Credit Suisse.

Additionally, Telstra has purportedly assured its suppliers that any outstanding accounts arranged through Greensill’s early payment product will be covered by the telecom’s own cash. At the end of December, this amount equated to $98 million in payable invoices.

CIMIC and ARTC were also in Credit Suisse’s “high income” fund which will be liquated. The multinational contractor, CIMIC, had a finance balance of $144 million at years’ end. Meanwhile, ARTC has not provided any information on whether it used Greensill’s payment scheme for suppliers.

In early February, we covered CIMIC’s controversial use of reverse factoring for payments to suppliers.

Telstra and CIMIC share price recap

Greensill’s undoing has gained attention over the last week. So it might be worthwhile looking at how its client’s share prices have responded. 

Telstra’s share price has lost a mere 0.3% in the last month. The company’s $1.259 billion in cash and cash equivalents is more than enough to cover the invoices to its suppliers. This might be helping the share price remain largely unscathed by recent revelations. 

In contrast, CIMIC has been hit by a 25% fall in its share price over the last month. The construction company’s use of payment financing has garnered plenty of backlash recently. Some suppliers have reported that CIMIC forced them to use the supply chain financing system for payments. Given CIMIC’s high debt to cash ratio and the ongoing opaqueness of Greensill’s use, investors appear concerned.

More reading

• The worst performing ASX 200 shares last week
• Is the Telstra (ASX:TLS) share price a top buy right now?
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• 2 ASX dividend shares with attractive yields to buy this week
• Leading broker names 2 ASX dividend shares to buy next week

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Telstra (ASX:TLS) share price and others caught in Greensill insolvency appeared first on The Motley Fool Australia.

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

The Australian share market may be pushing higher today, but the same cannot be said for the Zip Co Ltd (ASX: Z1P) share price.

In afternoon trade the buy now pay later provider’s shares are down 8% to $8.80.

This compares to a 0.6% gain by the S&P/ASX 200 Index (ASX: XJO).

Why is the Zip share price sinking?

There appear to be a couple of catalysts for today’s weakness in the Zip share price.

The first is a broker note out of Macquarie on Friday. According to the note, the broker has retained its underperform rating but lifted the price target on the company’s shares to $5.70.

Even after today’s pullback in the Zip share price, this price target implies potential downside of 35% over the next 12 months.

Macquarie has concerns that its QuadPay business in the United States could experience a meaningful reduction in its net transaction margin due to increasing competition.

In addition, the broker fears that customer acquisition costs could increase and future growth will be harder to come by.

What else is weighing on Zip shares?

Also weighing on the Zip share price today could be news that current futures contracts are pointing to a decline on the tech-heavy Nasdaq index tonight.

According to CNBC, current futures contracts indicate that the Nasdaq index will drop 1% at the open.

This appears to have led to concerns that the tech selloff is still not over and that tech stocks could still drop further before bottoming.   

It isn’t just the Zip share price sinking today. Rival Afterpay Ltd (ASX: APT) has given back its morning gains and is tumbling lower.

This has led to the S&P/ASX All Technology Index (ASX: XTX) dropping 0.6% in afternoon trade. This compares to a gain of approximately 2.5% in morning trade.

More reading

• Why Audio Pixels, Nick Scali, Smartgroup, & Zip are tumbling lower
• Aristocrat (ASX:ALL) share price surges as it finds a sweet spot
• The Zip (ASX:Z1P) share price is down 34% in less than a month
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• 2 fantastic ASX growth shares to buy this week

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. 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 Zip (ASX:Z1P) share price is down 8% today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2MVE9MF

February reporting season highlighted relatively flat earnings growth for ASX 200 shares, but an improvement in dividends and cash holdings. Here are the ASX 200 dividend shares that are currently paying the highest dividends. 

1. Fortescue Metals Group Ltd (ASX: FMG) 

A roaring iron ore spot price has earned Fortescue the title of highest paying ASX 200 dividend share. Unlike other shares that might be paying a higher yield due to a fall in share price, higher iron ore prices have translated to record earnings and cash flow, and subsequently a market-leading dividend yield of 11.70%. 

Brokers think the Fortescue share price could bounce back in the short-medium term after it went ex-dividend last week. On 4 March, UBS rated Fortescue as a buy with a price target of $25. While Macquarie Group Ltd (ASX: MQG) maintained an outperform rating with a price target of $25.50 on the same day. 

2. AGL Energy Limited (ASX: AGL) 

AGL finds itself as the second-highest yielding ASX 200 dividend share for all the wrong reasons. Its shares have been continuously trending lower year-on-year since 2017, losing more than 60% in value. However, its shares have continued to underperform in the new year, down 20% year-to-date. 

Despite paying a dividend yield of 9.40%, analysts at UBS have retained a sell rating with a $10.10 price target. Trading conditions have been tough for the energy company, with weak wholesale prices for electricity and renewable energy certificates, and lower gross margins in wholesale gas. Despite the company’s efforts to reduce costs, UBS believes its earnings will continue to slide. 

While a yield of 9.40% is attractive, the challenge with AGL remains for both its weak earnings and downward trending share price. 

3. Aurizon Holdings Ltd (ASX: AZJ) 

Australia’s largest rail freight operator seems to be a better version of AGL. While its share price and earnings have remained relatively flat for the last 8 years, it beats AGL’s tumbling share price. 

The company’s half-year results highlight a 2% fall in revenue to $1.49 billion while Earnings before interest, tax, depreciation and amortisation (EBITDA) was up 1% to $738.3 million. Its solid earnings have translated to a 7.60% dividend yield. 

More reading

• Why the Fortescue (ASX: FMG) share price could go higher
• The worst performing ASX 200 shares last week
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• Morgan Stanley reveals some investment trends to watch in 2021
• How to turn $20,000 into $300,000 in 10 years with ASX shares

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

The post The 3 highest paying ASX 200 dividend shares appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/30orIvT

The Queensland Pacific Metals Ltd (AXS: QPM) share price is on the rise today, opening up more than 8% on Friday’s close before settling to its current level of 9.4 cents — up 3%.

The gains have come after the miner announced its Townsville Energy Chemicals Hub (TECH) project’s estimated CO2 emissions. The announcement highlighted the possibility for the project to achieve net-negative CO2 emissions.

Further, the company confirmed the project’s current emissions are estimated to be 36% lower than the industry average.

What is the TECH Project?

Mining company Queensland Pacific Metals is currently advancing feasibility studies and approvals for its TECH Project.

The project is set to be an advanced, sustainable producer of nickel sulfate, cobalt sulfate, high purity alumina, and other by-products.

The company expects it to be the first producer of critical chemicals for the lithium-ion battery and electric vehicle sector to create a nearly no waste product.

Located in Townsville’s Lansdown Eco-Industrial Precinct, the TECH Project is to process high quality ore imported from New Caledonia.

Is Queensland Pacific Metals entering the future of nickel production?

Today’s announcement follows the release of a commissioned report that found, by using recycled gas, the TECH Project may achieve net-negative CO2 emissions.

Queensland Pacific Metals is considering powering the project with gas from nearby coal mines, which typically de-gas areas for safety reasons ahead of mining. As gas is mostly methane, releasing it into the atmosphere is worse for global warming than releasing CO2. While some coal mining productions burn the gas afterward and release it as CO2, it is still environmentally inefficient.

By using gas that would otherwise be released into the atmosphere, the project could receive carbon credits, thus neutralising its own emissions. 

The data announced today comes from a Minviro report commissioned by Queensland Pacific Metals. Minviro is an international company specialising in assessments of mining and mineral processing projects.

The data has considered emissions from “cradle to gate”, including those produced by mining ore in New Caledonia, processing it in Townsville at the TECH Project and transporting the final product.

Minviro will update its assessment of greenhouse gas emissions for the TECH Project when Queensland Pacific Metals finalises its gas supply.

Commentary from management

Queensland Pacific Metals’ CEO Stephen Grocott said the newly announced data makes the TECH Project even more attractive to investors within the European, north Asian and North American battery supply chain.

We have been positioning the TECH Project to be a world leader in sustainable nickel production with our zero liquids discharge, potential to be zero-solids discharge and no requirements for a tailings dam. The Minviro report adds another feature in the cap for the TECH Project, positioning it as a low (greenhouse gas) emissions project with the potential to be net-negative. We are pleased that not only are we leading the way, we have further opportunities for improvement which will be pursued in our feasibility study.

Queensland Pacific share price snapshot

The Queensland Pacific share price is currently up 175% year to date and 526% over the past 12 months.

It has a market capitalisation of $84.9 million with approximately 932 million shares outstanding.

More reading

• Up almost 1000% in 1 year, the Bionomics (ASX:BNO) share price moves higher
• Treasury Wine (ASX: TWE) share price shoots over 8% higher on takeover talks
• ANZ (ASX:ANZ) hits 3 year high. Can we thank dividends?
• Don’t take it from me. Take it from them…
• International Women’s Day: The female CEOs of the ASX

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 the Queensland Pacific Metals (AXS:QPM) share price is climbing today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38h2TGw

The Bionomics Ltd (ASX: BNO) share price is in positive territory today after announcing a non-renounceable entitlement offer. During mid-afternoon trade, the clinical-stage biopharmaceutical company’s shares are up 3.5% to 30 cents.

This takes the Bionomics share price to more than a 950% gain when compared to this time last year. Surprisingly, in March 2020, the company’s shares were swapping hands for as little as 2.8 cents.

Details of the offer

In its announcement, Bionomics updated shareholders advising of a pro rata non- renounceable entitlement offer on a 1:6 basis. This follows the company’s recent subscribed underwritten placement to North American and European institutional and sophisticated investors.

The offer price will be issued at the same rate to the previous placement, at 14.5 cents apiece. Notably, this represents a 50% discount on the current Bionomics share price of 29.5 cents. Moreover, the new shares will rank equally with existing ordinary shares.

The record date for the entitlement offer is on Thursday 11 March, 6:00pm Australian Central Daylight Time (ACDT). Unless extended, the placement will close 30 March, 5:00pm ACDT. The new shares will be allotted on 8 April 2021.

The expected take-up of the offer is estimated to bring in around $20 million in capital for the company. This will be used to partly fund a Phase 2b Post-Traumatic Stress Disorder trial for mid-2021. Additionally, the remaining monies will be spent towards general working capital purposes.

Quick take on Bionomics

Founded in 1996, Bionomics is a biopharmaceutical company that develops drug candidates to treat central nervous system disorders. This includes anxiety, depression, and Alzheimer’s disease.

The company has offices in Australia, the United States, and France.

About the Bionomics share price

Over the last 12 months, the Bionomics share price has been one of the best performers on the ASX market. Positive investor sentiment in the company picked up towards September, and particularly shot higher in February.

Based on current valuations, Bionomics has a market capitalisation of close to $250 million.

More reading

• Why the Bionomics (ASX:BNO) share price is climbing today

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 Up almost 1000% in 1 year, the Bionomics (ASX:BNO) share price moves higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3bqZO8Z