The Plenti Group Ltd (ASX: PLT) share price is slipping today after it announced the launch of its own interest-free, buy now pay later finance for renewable energy technology. 

At the time of writing, the Plenti share price is down 2.38%, trading at $1.02.

What’s driving the Plenti share price today? 

Plenti is pleased to bring its BNPL product public after a successful 3-month pilot with selected renewable technology partners. The new zero-interest payment plan will allow Australian homeowners to spread the cost of renewable energy technology purchases such as solar panels and batteries, over up to 72 interest-free monthly payments. 

The company believes this BNPL product may materially increase the size of its existing renewable energy finance market opportunity due to the simplicity and appeal to BNPL finance. It views this offering as an opportunity to create a ‘one-stop shop’ for vendors to offer both an interest-bearing and interest-free BNPL finance from a single point-of-sale portal.

Plenti CEO Daniel Foggo welcomed the progress, saying:

The performance of the pilot has far exceeded our expectations and gives us confidence in future demand from our total network of referral partners. Our expansion into BNPL finance marks an exciting development in our plans to be the Australian consumers’ funder of choice for the purchase of renewable energy technology.

By offering a simple zero interest payment plan, differentiated by customer-focused technology and term flexibility, we believe we can help more households enjoy the benefits of affordable renewable energy while helping Australia achieve its emissions reduction goals.

Plenti snapshot 

Plenti is a consumer lending and investment business focused on three core verticals of the Australian credit industry: automotive lending, renewable energy lending, and personal lending. 

The company listed on the ASX on 23 September 2020 at an initial public offering (IPO) price of $1.66 per share. Its shares have never surpassed its offer price and have drifted lower in recent weeks to the $1.00 level.

Despite its share price weakness, the company’s performance has exceeded prospectus forecasts. In its 1H FY21 results announced on 18 November 2020, the company highlighted a 33% increase in loan originations to $167.0 million, 6% above prospectus forecasts. Similarly, revenue had increased 41% to $26.0 million, 2% higher than its prospectus. 

Automotive lending is the company’s largest revenue vertical. In 1H FY21, it was responsible for $81.1 million or roughly half the company’s loan originals. 

After the Plenti share price slip today, the company now has a market capitalisation of $177 million.

More reading

• Downer (ASX:DOW) share price edges higher on electrifying contract win
• Will the Kogan (ASX:KGN) share price outperform in 2021?
• Why the Impedimed (ASX:IPD) share price shot higher this morning
• Why the ECS Botanics (ASX:ECS) share price is moving higher today
• What’s with the Aerometrex (ASX:AMX) share price today?

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

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It looks like the Kogan.com Ltd (ASX: KGN) share price started off the new year by falling off a cliff. Its shares are down 25% year-to-date, compared to its relentless $4 to $25 run last year. 

Why is the Kogan share price struggling? 

The biggest fall in the Kogan share price came about on 29 January, when the company announced a business update for 1H FY21. The update recorded strong numbers with gross sales up 96% over the prior corresponding period. This translated to gross profit being up more than 120% and earnings before interest, tax, depreciation and amortisation (EBITDA) soaring 140%. Despite a report that reads well at face-value, Kogan shares took an 11.50% dive that day. 

The market had a similar reaction to the company’s full-year results announced on 26 February. Its shares were once again sold down by 8% to hit a 9-month low around $14.40. 

Many ASX ecommerce and retail shares that have experienced significant growth thanks to COVID have slumped in recent weeks as well.

The Redbubble Ltd (ASX: RBL) share price experienced a similar reaction where its shares took a 13% dive on the day of its half-year result. The results also read well with strong growth across all its key metrics. 

In more recent days, the JB Hi-Fi Limited (ASX: JBH) share price shed its 10% year-to-date gains and is now down 8% for the year. 

Clearly Kogan isn’t alone it its recent sell off. 

What are brokers thinking? 

On 1 March, Credit Suisse dropped its Kogan share price target from $21.08 to $20.85 but maintained an outperform rating. The broker notes that the company’s results were ahead of the initial guidance provided in the 1H FY21 business update. On the same day, UBS held a neutral rating but also reduced its share price target from $17.90 to $15.10. 

Kogan’s full-year outlook 

Kogan expects to see further growth in its exclusive brands while continuing to enhance and develop its ecosystem. 

The company was unable to provide a concrete guidance for the second half of FY21, but noted that it will provide regular business updates during the year. 

It revealed that January 2021 unaudited management accounts show year-on-year growth for gross sales, gross profit and adjusted EBITDA by a respective 45%, 102% and 90%. 

It might be worth noting that its January figures are lower than its 1H FY21 results (on a percentage basis) where gross sales, gross profit and adjusted EBITDA increased by a respective 97.4%, 126.2% and 184.4%. 

More reading

• Nasdaq slumps overnight, ASX 200 shares to open weaker
• 2 excellent ASX growth shares to buy in March
• Is the Kogan (ASX:KGN) share price sinking back to reality?
• Why Afterpay, IOUpay, Liontown Resources, & Redbubble are racing higher
• ASX 200 up 1.5%: Afterpay & Zip jump, Fortescue tumbles

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Impedimed Ltd (ASX: IPD) share price shot higher this morning, up 5% in morning trade. 

This came after the ASX medical technology company reported a significant uptick in the number of tests conducted with one of its leading medical devices.

What testing results did Impedimed report?

The Impedimed share price is surging after the company reported its customers had conducted more than 28,000 patient tests with its SOZO device in the second quarter of the 2021 financial year (Q2 FY21). That brings the total number of patient tests since SOZO’s commercial launch in October 2017 to more than 200,000.

The company noted that the pace of testing is picking up speed, with 100,000 tests in the past 13 months compared to the 100,000 tests in the first 32 months. It forecasts the SOZO testing rate will continue to increase.

SOZO is an FDA cleared “non-invasive bioimpedance spectroscopy (BIS) device”. According to the company, the device provides a “precise snapshot of fluid status and tissue composition in less than 30 seconds”. Those results can then be posted directly online, enabling the information to be shared amongst medical professionals.

Management notes

Commenting on the testing numbers, Impedimed CEO Richard Carreon said:

This is a significant milestone for our company, but more importantly for the patients whose lives have been dramatically impacted by the reduction in lymphoedema rates from SOZO testing.

For the company, we are building a large dataset which will be very valuable in providing new insights into the course and care of a large number of chronic disease states.

Carreon added that COVID-19 had seen testing numbers fall in US cancer centres as the pandemic spread in late December and into January. With testing numbers having since improved, he expects testing numbers to pick up in March and that this trend “importantly, points to a strong recovery in patient testing heading into the fourth quarter”.

Impedimed share price snapshot

Over the past full year, the Impedimed shares have gained 44%. That compares to a 10% gain on the All Ordinaries Index (ASX: XAO).

 

More reading

• Downer (ASX:DOW) share price edges higher on electrifying contract win
• Plenti (ASX:PLT) share price slips on renewable energy BNPL launch
• Will the Kogan (ASX:KGN) share price outperform in 2021?
• Why the ECS Botanics (ASX:ECS) share price is moving higher today
• What’s with the Aerometrex (ASX:AMX) share price today?

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.

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The ECS Botanics Holdings Ltd (ASX: ECS) share price started this morning flying high following a supply agreement from Murray Meds. At the time of writing, the agribusiness and hemp food company’s shares have since retreated are now trading up 3.2% at 6.4 cents.

Supply agreement propels the ECS Botanics share price

The ECS Botanics share price is surging today following the company’s latest announcement.

In today’s release, ECS advised that Murray Meds has entered into a supply agreement with an Australian cannabinoid company. This is the second supply contract that Murray Meds have signed within the last 4 weeks. The previous deal related to a three-year supply agreement with the Armour Group to sell and export medicinal cannabis oils in Germany and the United Kingdom.

Under the newly signed contract, Murray Meds will supply medicinal cannabis dried flower, concentrate, and oils to the undisclosed cannabinoid company.

The term will run over 3 years and generate total revenue of $750,000. However, the bulk of this ($500,000) will be spent within the first year. ECS has kept all other details about the supply agreement under wraps, particularly around pricing and units.

Who is Murray Meds?

In January, ECS signed a binding term sheet to acquire 100% of Murray Meds, a Victoria-based medical cannabis cultivator. Shareholders approved the acquisition this week, with settlement expected soon.

Located on the Murray River in North Western Victoria, Murray Meds operates a licenced medical cannabis cultivation and manufacturing facility. The company produces around 3,500kg of medicinal cannabis per year, consisting of dried flower, oils, and tinctures.

Words from the managing director

ECS managing director Alex Keach welcomed the news, saying:

This is the second supply contract Murray Meds has signed in recent weeks and validates that a low capex and operating medicinal cannabis facility can still meet pharmaceutical quality of the oil and premium priced dry flower market. I am so pleased that this narrative is becoming a reality in the market place.

ECS has previously collaborated and worked closely with the customer. We look forward to furthering this relationship and, with the acquisition of Murray Meds, expanding the ECS sales network from our production hubs in Victoria and Tasmania.

ECS Botanics share price snapshot

The ECS share price has rocketed since the beginning of December, gaining more than 113%. Recent positive announcements from the company look to have pushed its shares higher, to within sights of its all-time high.

Based on the current share price, ECS has a market capitalisation of close to $28 million.

More reading

• ECS Botanics (ASX:ECS) share price edges lower despite positive update

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.

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The Aerometrex Ltd (ASX: AMX) share price is trading relatively flat today despite the company announcing the online opening of its MetroMap Store. At the time of writing, the aerial mapping company’s shares are up 0.45% to $1.105.

Let’s take a closer look and see what Aerometrex updated the ASX market with.

New product solution

The Aerometrex share price is faltering today as investors appear unfazed by the company’s positive update.

According to this morning’s release, Aerometrex advised that it has launched its online MetroMap 3D Store. Targeted to small-to-medium sized businesses (SME), the new offering allows customers to access Aerometrex’s off-the-shelf 3D modeled data. This presents an attractive opportunity for the company as it had not previously addressed the lucrative SME market.

Prior to the opening of the MetroMap 3D Store online, customers could only access 2D imagery and 3D model data. This occurred through a subscription. However, users are now able to define geographical locations and select their preferred data format when purchasing the 3D datasets. This is then quickly sent electronically helping the customer make informed decisions.

Aerometrex stated that its clients will have access to the most recent data on file. Additionally, they will be notified when new updates are available.

What did the managing director say?

Aerometrex managing director Mark Deuter commented:

This new product solution by Aerometrex meets the requirements of the Company’s customers at their time and point of need and supports us to truly penetrate the large SME market opportunity with a no-touch sales approach. The launch of our MetroMap 3D Store builds on the release of our MetroMap LiDAR data which is also available for purchase on-line.

We see further avenues to enhance our product offering, with a development path to offer Digital Terrain Model and Digital Surface Model data on the same online store, as well as Artificial Intelligence-derived analytics.

Aerometrex share price snapshot

The Aerometrex share price has fallen heavily in the past 12 months, losing close to 40% of its value. The company’s shares hit an all-time low of 70 cents in March 2020 before rebounding to $1.84 in May. However, since then, its shares have continued to trend lower, reflecting concerns about its current operating environment caused by COVID-19.

More reading

• Why the Aerometrex (ASX:AMX) share price is surging 9% higher

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.

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For anyone who is invested in ASX tech shares, or even just watches them for fun (you know who you are), volatility is a constant companion. Whenever the S&P/ASX 200 Index (ASX: XJO) moves around, you can almost always count on ASX tech shares moving around more. And on those days, it’s often in the opposite direction to the general market as well.

Take yesterday. Yesterday, the ASX 200 gained a modest 0.6% over the trading day. Yet tech shares like Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) were both down more than 2% each. Year to date, the ASX 200 is currently (at the time of writing) up roughly 1.1%. Yet Xero is down more than 19% over the same period. Afterpay was up around 33% at one point last month (10 February). But today, Afterpay is down ~2% year to date. Swings like this are very common with most ASX tech shares, whether that be Zip Co Ltd (ASX: Z1P) or WiseTech Global Ltd (ASX: WTC).

So what gives?

P/Es and cash flows

It is possible that the relatively extreme volatility we see in the ASX tech space comes from the way ASX shares are often valued by professional and institutional investors (who are the ones who move the markets most of the time). It’s pretty easy to work out what a mature business that generates positive cash flow will earn its investors. Take Transurban Group (ASX: TCL). Transurban operates toll roads, which have a set pricing scheme, and fairly predictable traffic volumes backed up by lots of historical data. Thus, it’s pretty easy to (roughly) work out how many vehicles will use Transurban’s roads, and by extension how much money will flow to the company.

But it’s a whole different kettle of fish with tech shares. Many tech shares aren’t even profitable on a statutory basis. That’s why Afterpay doesn’t yet have a price-to-earnings (P/E) ratio. When it comes to the tech space, investors are usually trying to value the fastest-growing companies based on what their future cash flows might be, not what they are delivering this year (or next year for that matter). That’s why the market is happy to assign a (seemingly sky-high) P/E ratio of 500 to Xero. It’s expecting Xero to earn way more in the future than what it earns today.

ASX tech shares are hard to value

But basing a company’s current valuation on what it could deliver years down the track is fraught with risk. None of us knows what the future holds at the best of times. Thus, small changes to the regulatory or economic environment today can have big implications in 3 or 5 years. With a company like Transurban, it’s a lot easier to work out what those changes might do to the company because we can see immediate effects on its mature cash flow. But with a fast-growing company with nothing more than a promising pipeline of potential profits, it gets a lot murkier.

It could be for this reason that the valuations of ASX tech shares move around so much. It’s just harder to predict how profitable a company will be in the future if that company isn’t making profits today.

More reading

• 2 quality SaaS ASX shares to buy in March 2021
• Why the Xero (ASX:XRO) share price is on watch today
• 5 things to watch on the ASX 200 on Thursday
• The Flexiroam (ASX: FRX) share price rockets 35% after new announcement
• ASX 200 rises, Rio chair will leave, Nine gets a new CEO

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO, Transurban Group, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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De Grey Mining Limited (ASX: DEG) shares are failing to ignite today despite the company providing a positive drilling update. At the time of writing, the De Grey share price is trading flat at 95 cents. This comes following a 10.53% surge in the De Grey share price during yesterday’s session. 

The minerals & exploration sector bounced back yesterday after a three-day lull. Mining companies including Piedmont Lithium Ltd (ASX: PLL) and Ramelius Resources Limited (ASX: RMS) finished the session with gains of over 12%.

Let’s take a look at what De Grey announced this morning. 

Positive drilling results

This morning, De Grey released its latest drilling results relating to the company’s Hemi Gold Discovery project.

Summarising the discovery, De Grey managing director Glenn Jardine said:

The large Crow/Aquila gold system continues to expand and be defined across multiple stacked subvertical lodes. The dominant lodes of McLeod and Aquila are oblique to each other, intersect at the eastern end and are expected to support a combined open pit scenario. Both lodes demonstrate high grade mineralisation that should also provide underground mining potential below any open pit mining limits.

The company reported “significant new gold results” in drilling. This includes 24.8m @ 2.1g/t Au from 308.19m at the McLeod Lode and 52.2m @ 2g/t Au from 519.83m at the Aquila Zone site.

Change in substantial holding

In other news, De Grey also announced this morning that London-based Jupiter Asset Management Limited has grown its position in the business. 

Jupiter purchased approximately 2.1 million more shares over the past two days and now holds 6.04% voting power in the exploration company.

Average trading volumes of De Grey shares have been exceeded in three out of the past five days.

De Grey share price snapshot

Over the past 12 months, the De Grey share price has soared by more than 300%. However, year to date, De Grey shares have lost nearly 15%. Based on the current share price, the company has a market capitalisation of around $1.2 billion with 1.3 billion shares outstanding.

More reading

• 3 ASX 200 shares that doubled profits this reporting season 
• These 2 ASX mining shares have gained over 8% this week
• Government’s strategic roadmap to give these ASX miners a boost
• Synlait (ASX:SM1) share price crashes 7% on cancelled guidance
• 2 fantastic blue chip ASX 200 shares to buy

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February reporting season was an opportunity for S&P/ASX 200 Index (ASX: XJO) shares to demonstrate that the economic effects of COVID-19 are largely behind us and business is starting to get back on track.

Earlier this week, Commsec advised in its Economics Insights report that 86% of companies were able to report a statutory profit for the six months to December 2020, but that aggregate interim earnings fell by 17%. 

Despite the broader earnings weakness for ASX 200 shares, here are three that managed a significant turnaround in net profits. 

ARB Corporation Limited (ASX: ARB) 

ARB is Australia’s largest manufacturer and distributor of 4×4 vehicle accessories. The company’s half-yearly report is a true earnings recovery story with profit after tax up 113.5% on the prior corresponding period to $54 million. The company attributed the turnaround to pent up demand created during the early period of lockdown. 

The company highlighted a respectable 14.0% increase in sales to the Australian vehicle aftermarket, while export sales grew strongly by 36.7% and represented more than a third of the company’s total sales. 

Despite profits doubling, the ARB share price is down nearly 9% since the company released its half-yearly report. But looking at the bigger picture, the ARB share price has run by more than 200% since the initial March 2020 COVID-19 selloff. 

Harvey Norman Holdings Limited (ASX: HVN) 

Harvey Norman delivered a record half-yearly result which saw its reported profit after tax surge 116.3% to $462.03 million. The company pointed to strong growth in areas such as technology, with computers and related peripherals, leading the way due to the continuation of working from home.

Other categories that supported its surging revenues include gaming, boosted by the launch of PS5 and XBox Series X in November 2020, whitegoods, furniture and bedding. 

The company also highlighted apparent trends that supported growth in new areas such as outdoor furniture and outdoor cooking categories, as consumers rushed to transform their backyards and other entertainment spaces. 

The strong uptake of the federal government’s HomeBuilder grant also supported Harvey Norman’s home & lifestyle segment. The company sees the surge in new dwelling constructions and major renovations as a catalyst to drive sales and new opportunities moving forward. 

Ramelius Resources Limited (ASX: RMS) 

The gold spot price has been grinding lower to US$1,700 after hitting a record US$2,075 per ounce in August 2020. This has translated to weakness across the board for ASX gold mining shares. 

However, Ramelius has been a quiet achiever, with its half-yearly results highlighting a 57% increase in gold production to 144,240 ounces and a 294% surge in net profit after tax to $81.3 million. 

The company has a strong track record of increasing gold production, with year-on-year gold production increasing 21.5% since FY15. The company noted that its strong cash generation will be invested in current and future projects, and also a return to shareholders. 

More reading

• These 2 ASX mining shares have gained over 8% this week
• These are the latest ASX shares to be hit by broker downgrades
• Leading brokers name 3 ASX shares to buy today
• Has the Harvey Norman (ASX:HVN) share price peaked?
• The Harvey Norman (ASX:HVN) share price slips despite soaring profits

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

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Piedmont Lithium Ltd (ASX: PLL) and Ramelius Resources Limited (ASX: RMS) shares both blew up by over 12% yesterday. And despite a volatile week of trade on the ASX, these two miners are both outperforming the All Ordinaries Index (ASX: XAO) for the week so far.

Let’s take a closer look at what the companies have been up to. 

Piedmont Lithium share price shoots up

The Piedmont Lithium share price zoomed 12.2% higher during yesterday’s trading session and finished the day at $1.05. However, at the time of writing on Thursday, Piedmont shares have slumped 10.38% to 95 cents. Despite today’s falls, this still puts the company’s shares up by more than 14% for the week so far.

Earlier this week, Piedmont announced that the business has made progress pursuing re-domiciliation from Australia to the United States.

If the proposal is passed by the court, Piedmont US, a newly formed US corporation, will acquire Piedmont.

The Supreme Court of Western Australia has now ordered the proposed Scheme Booklet be circulated to shareholders for consideration and, if seen fit, approved.

A shareholder meeting will be held in Perth on 7 April 2021.

Presently, Piedmont has a market capitalisation of around $1.5 billion and there are 1.4 billion shares outstanding. Over the past 12 months, the Piedmont share price has soared by more than 740%.

Ramelius Resources share price bangs 14% up

The Ramelius Resources share price finished yesterday’s session with a 14.5% gain.

According to the company’s latest earnings statement, HY21 net profit after taxes (NPAT) jumped 297% to $81.3 million.

Gold production soared 57% with the miner producing 144,240 ounces for the period.

Total sales revenue also flew higher with a 116% boost to come in at $342.2 million.  

Earnings before interest, tax, depreciation and amortisation (EBITDA) was $192.8 million at the end of the HY21 period. That’s a 193% improvement compared to the HY20 $65.9 million EBITDA reported.

At the time of writing, the Ramelius share price has jumped 1.64% to $1.3925. Over the past year, Ramelius shares have climbed by around 12%. The company has a current market capitalisation of approximately $1.1 billion with there are 814 million shares outstanding. 

Foolish takeaway

Following a three day losing streak, Australia’s mining sub-index posted its biggest intraday trading bounce yesterday since 22 February 2021.

The metals & mining sector is the largest industry sector by number of companies on the ASX. 

More reading

• Why the Piedmont (ASX:PLL) share price just hit an all-time high
• Did you know Piedmont (ASX:PLL) and Mesoblast (ASX:MSB) are listed on the NASDAQ?
• The Piedmont (ASX:PLL) share price surged 12% today. Here’s why

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

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Some ASX miners are likely to benefit from the federal government’s $1.3 billion plan to process more critical minerals on our shores.

These ASX shares can thank the US-China trade war and COVID-19 for this new tailwind. These events have convinced Prime Minister Scott Morrison to develop a 10-year roadmap for critical minerals, reported the Australian Financial Review.

It’s become painfully apparent that Australia and the world have become too reliant on China for raw materials used in electronics and advanced manufacturing.

The Chinese government could restrict the supply of these minerals to gain the upper hand in any trade dispute. Another global pandemic could also bring key industries to their knees.

ASX mining shares that could get new government funds

The irony is that Australia has some of the world’s biggest deposits of these commodities. Our miners mostly dig them up and send them overseas to be processed into higher value products used in electric vehicles, advanced weapons, telecom equipment and green tech.

The Australian government wants to capture more of the value chain and acknowledges that it will need to invest alongside industry to achieve this.

This is good news for the likes of the Lynas Rare Earths Ltd (ASX: LYC) share price and Iluka Resources Limited (ASX: ILU) share price. The former mines rare earths while the latter mineral sands.

Australia joins others in funding critical minerals

There is a global trend for governments to contribute to such projects. The US and South Korean governments are only a few examples.

But rare earths and mineral sands are unlikely to be the only commodities that our government would like to support.

ASX lithium and nickel miners may also be able to tap into federal government grants as these are used extensively in batteries.

Such a move could support the IGO Ltd (ASX: IGO) share price, Galaxy Resources Limited (ASX: GXY) share price and Pilbara Minerals Ltd (ASX: PLS) share price.

10-year roadmap details

The AFR reports that our prime minister will reveal details of the 10-year roadmap tomorrow. The plan will help position Australia as not just a global resources powerhouse, but also a leader in manufacturing and value-added processing.

The initiative is seen as a way for the Morrison government to win over voters in coal mining regions of Australia, while pacifying city voters concerned about climate change.

Much of the $1.3 billion in funds could be used to develop processing facilities in the Hunter and Central Queensland.

More reading

• Synlait (ASX:SM1) share price crashes 7% on cancelled guidance
• 2 fantastic blue chip ASX 200 shares to buy
• Nasdaq slumps overnight, ASX 200 shares to open weaker
• 2 strong ASX healthcare shares to buy this month
• 2 small cap ASX shares that are growing rapidly

Motley Fool contributor Brendon Lau owns shares of Lynas Rare Earths Ltd and Iluka Resources Limited. Connect with me on Twitter @brenlau.

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

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