The S&P/ASX 200 Index (ASX: XJO) was on form again in March and recorded a solid 1.8% gain to finish at 6,790.7 points.

While a good number of shares pushed higher with the market, some climbed more than most. Here’s why these were the best ASX 200 performers in March:

GrainCorp Ltd (ASX: GNC)

The GrainCorp share price was the best performer on the ASX 200 in March with a 24.5% gain. This strong gain was driven by the grain exporter announcing new operating initiatives. The include expanding its bulk materials for export, increasing utilisation at the Numurkah and West Footscray processing facilities, and shifting its foods product mix to higher-value products. Management expects the initiatives to boost its operating earnings by $25 million by 2023-24.

Premier Investments Limited (ASX: PMV) 

The Premier Investments share price wasn’t far behind with a 23.3% gain in March. The catalyst for this was the release of a very strong half year result. For the first half of FY 2021, the retail conglomerate reported a 7.2% increase in global sales to $784.6 million and an 88.9% jump in net profit to $188.2 million. A key driver of its growth was the Peter Alexander business, which reported record sales of $207.7 million. This was supported by a jump in online sales and rental and wage subsidies, underpinning a material expansion in its margins.

Crown Resorts Ltd (ASX: CWN)

The Crown share price was on form last month and jumped 18.2%. Investors were scrambling to buy the casino and resorts operator’s shares after it received a takeover approach from Blackstone. The US investment company made an unsolicited, non-binding, and indicative proposal to acquire all of the shares in Crown at $11.85 cash per share. This was a 20.1% premium to its last close price at the time. The Crown board is still assessing the proposal, which was received on 22 March.

Polynovo Ltd (ASX: PNV)

The Polynovo share price was back on form and raced 12.5% higher in March. There appear to have been a few catalysts for this strong gain. One was bargain hunters swooping in after a sizeable year to date decline. In fact, despite this gain, the PolyNovo share price is still down 30% in 2021. In addition to this, a positive broker note out of Ord Minnett and an agreement with major US group purchasing organisation, Premier Inc, supported its shares. 

More reading

• These were the worst performing ASX 200 shares in March
• Is the ASX tech sector in for more pain?
• Why the Wesfarmers (ASX:WES) share price is up today
• ASX 200 jumps 1.35%: Zip inks deal with JB Hi-Fi, Suncorp’s flood update
• Over 1 in 4 Australians are investing in the ASX: report

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 POLYNOVO FPO. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. 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.

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The AMP Ltd (ASX: AMP) share price will be one to watch closely on Thursday.

This follows the announcement of a change of leadership after weeks of speculation.

What did AMP announce?

This morning AMP announced that Francesco De Ferrari will retire from the role of Chief Executive Officer (CEO).

Replacing Mr De Ferrari will be Alexis George from Australia and New Zealand Banking GrpLtd (ASX: ANZ).

Ms George is the Deputy CEO at ANZ and was previously the Group Executive Wealth Australia, overseeing the sale of the business in 2018.

The next steps

According to the release, Alexis George will join AMP in the third quarter of the current calendar year, subject to required regulatory approvals.

Mr De Ferrari will continue to lead AMP during the interim period and ensure a smooth handover to Ms George when she joins.

He will also continue to work in partnership with the Board and lead AMP’s key strategic initiatives. This includes discussions on the proposed transaction for AMP Capital’s private markets business with Ares Management Corporation.

AMP’s Chair, Debra Hazelton, commented: “On behalf of the Board, I would like to thank Francesco for his significant service to AMP and recognise his commitment to a smooth leadership transition. We wish him every success for the future and know he will continue to be the exemplary leader he has been at AMP. As we noted last week, with our portfolio review reaching completion, the Board and Francesco agreed that it is an appropriate time to begin the transition to a new CEO to take AMP forward.”

“A greater leader”

Hazelton spoke very positively about the appointment of Ms George and believes she is the right person to lead the company.

“In Alexis George, we have a great leader and strong fit for the future of our company. On any measure, she has outstanding industry experience in wealth management and banking, and is committed to continue the transformation of AMP’s business, and importantly, our organisation’s culture. Alexis will work with our executive team to complete and build on the strategic initiatives started under Francesco’s leadership and take AMP forward to its next phase of growth.”

ANZ also spoke positively about Ms George and her appointment as AMP’s new CEO.

ANZ’s CEO, Shayne Elliott, commented: “We will all miss her experience, wise counsel and down-to-earth leadership style. However, as one of the most experienced wealth executives in the country, she is ideally placed to lead AMP through its next phase and we all wish her well on the challenge.”

“It is also a good thing our most senior women are being selected for these high-profile and challenging roles. It shows we are providing our people with the opportunities they deserve and Alexis’s appointment as CEO of AMP is ultimately in the best interest of the Australian business community,” he added.

More reading

• 2 high yield ASX dividend shares to buy right now
• ASX banks are facing millions of cyber attacks each day
• AMP (ASX:AMP) share price slides on Ares update
• More Aussies now think shares are better than real estate
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back

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.

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The S&P/ASX 200 Index (ASX: XJO) was a positive performer in March. The benchmark index recorded a 1.8% gain to end the period at 6,790.7 points.

Unfortunately, not all shares on the index were able to climb higher with the index. Here’s why these were the worst ASX 200 performers in March:

Resolute Mining Limited (ASX: RSG)

The Resolute Mining share price was the worst performer on the ASX 200 in March with a 32% decline. Investors were selling the gold miner’s shares after the Ghanaian government terminated its Bibiani Gold Mine licence. As a result, Resolute has been advised to cease all activities and operations at the site. This is particularly bad timing as the company was in the process of selling the asset to Chifeng Jilong Gold Mining for US$105 million. Investors may be concerned that a capital raising will be required if the sale doesn’t go through.

Zip Co Ltd (ASX: Z1P)

The Zip share price wasn’t far behind with a decline of 29% last month. This decline appears to have been driven by weakness in the tech sector due to concerns over rising bond yields. In addition to this, a broker note out of UBS weighed on the buy now pay later provider’s shares. UBS downgraded Zip’s shares to a sell rating with a $6.40 price target.

Kogan.com Ltd (ASX: KGN)

The Kogan share price was out of form and tumbled 14.2% last month. This was despite there being no news out of the ecommerce company. However, as mentioned above, rising bond yields put a lot of pressure on the tech sector last month. This appears to have weighed on the Kogan share price and sent many investors to the exits.

A2 Milk Company Ltd (ASX: A2M)

The a2 Milk share price was out of form again last month and dropped 12.9% lower. Investors have been selling the infant formula company’s shares in recent months due to a series of guidance downgrades and its weak outlook. This is being caused largely by weakness in the daigou channel. In addition to this, last month Citi put out a bearish broker note, which had a sell rating and $7.15 price target on its shares.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 finishes quarter strongly, Zip partners with JB Hi-Fi, Suncorp gives flood update
• Is the ASX tech sector in for more pain?
• The Kogan (ASX:KGN) share price has nearly halved in 2021
• Why the Wesfarmers (ASX:WES) share price is up today

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 Kogan.com ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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.

The post These were the worst performing ASX 200 shares in March appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in April 2021
• 2 top ASX dividend shares to buy this month
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 finishes quarter strongly, Zip partners with JB Hi-Fi, Suncorp gives flood update
• 2 exciting ASX growth shares to buy next month

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. 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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As we marked a year since the introduction of COVID-19 lockdowns in Australia and with Easter upon us, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to Buy in April.

Here is what the team have come up with…

Tristan Harrison: Brickworks Limited (ASX: BKW) 

Brickworks has a number of positives going for it right now. The Australian construction market is going strong, whilst the US construction industry is finally seeing a recovery. 

Its property trust joint venture is making good progress at building new large warehouses. Plus, there’s still plenty of land left for development.  

Brickworks revealed in its FY21 half-year result that its inferred asset backing is over $27 per share, meaning that the current Brickworks share price is trading at a substantial discount to this. Within that value, some land is held at book value, but with a “significantly higher” market value.  

Motley Fool contributor Tristan Harrison does not own shares of Brickworks Limited.

Bernd Struben: Rural Funds Group (ASX: RFF)

ASX investors looking for potential share price gains along with a historically reliable income stream may want to consider Rural Funds Group.

Rural Funds leases agricultural equipment and property including cattle ranches, vineyards and cropping acreage. The company is in a good position with its leasing terms, with an average weighted lease expiry (WALE) of 11.1 years.

Rural Funds has a market cap of $801 million and has a strong history of regular and growing dividends. It pays a current annual dividend yield of just over 4.6%, unfranked.

At the time of writing, the Rural Funds share price is up by around 23% over the past 12 months.

Motley Fool contributor Bernd Struben does not own shares of Rural Funds Group.

Sebastian Bowen: Coles Group Ltd (ASX: COL) 

The ASX’s second-largest grocery giant, Coles, has had a rough start to the year, evidenced by its year-to-date fall of close to 15%.

However, that might make Coles a cheap option to consider, especially if you value dividend income.

On recent pricing, the Coles share price is offering a yield that’s close to 4%, with a price-to-earnings (P/E) ratio of under 21.

The dividend also comes with full franking credits of course, which could come in handy in this era of near-zero interest rates. Both of those metrics outshine Coles’ arch-rival Woolworths Group Ltd (ASX: WOW).  

Motley Fool contributor Sebastian Bowen does not own shares of Coles Group Ltd. 

Mitchell Lawler: Elders Ltd (ASX: ELD)

Heavy rainfall over the past couple of weeks has been devastating for some – but for farmers, the ground soaking was well needed.

The rainfall strengthens what has already been a blockbuster 12 months for our primary producers. Cattle prices have surged to astronomical levels as herds are restocked. Crop yields are also at record highs. A telling sign of how insulated the agriculture sector is from COVID-19 impacts.

If conditions continue to be favourable as they have been for farmers, Elders will continue to benefit. Elders’ cropping retail products, livestock agency services, and financial services are all closely tied to farming conditions.

Analysts at Goldman Sachs also see a favourable future for the company. The firm holds Elders on its conviction list with a buy rating and a 12-month price target of $15 a share – representing an upside of 20.5%.

Motley Fool contributor Mitchell Lawler owns shares of Elders Limited. 

Brendon Lau: IGO Ltd (ASX: IGO)

There’s a re-rating opportunity for the IGO share price, according to JPMorgan.

The miner is close to selling its stake in its Tropicana gold project and buying a $1.4 billion stake in Tianqi. The transactions will transform IGO into a pure raw material producer for high nickel batteries at a time when demand for the batteries is set to soar.

JPMorgan is recommending the stock as “overweight” with a price target of $7.80 a share.

Motley Fool contributor Brendon Lau does not own shares of IGO Ltd.

James Mickleboro: Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is Australia’s leading pureplay online beauty retailer with almost 800,000 active customers. Thanks to the accelerating shift to online shopping, Adore Beauty has been in fine form in FY 2021. During the first half, the company reported an 85% increase in half-year revenue to $96.2 million and a 188% jump in operating earnings to $5.2 million.

The good news is that this is still only a very small slice of its ~$11 billion addressable market. This gives Adore Beauty a long runway for growth over the next decade. Especially given the relatively low penetration of online beauty sales in Australia compared to other Western markets. An estimated 7.3% of beauty sales are made online here, whereas in the US it is over double this at 15.4%. UBS is a fan of the company and recently put a buy rating and $6.20 price target on its shares.

Motley Fool contributor James Mickleboro does not own shares of Adore Beauty.

More reading

• 2 top ASX dividend shares to buy this month
• Is the ASX tech sector in for more pain?
• 2 of the best ASX shares to buy for your retirement portfolio
• Is Coles (ASX:COL) a great value ASX dividend share?
• Over 1 in 4 Australians are investing in the ASX: report

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and RURALFUNDS STAPLED. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool Australia has recommended Elders 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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Are you wanting to bolster your income portfolio with some reliable ASX dividend shares in April?

Then you might want to take a look at the dividend shares listed below. Here’s what you need to know about them:

BWP Trust (ASX: BWP)

BWP is the largest owner of Bunnings Warehouse properties in Australia with a total of 68 properties in its portfolio.

While having such a reliance on a single tenant can carry risks, on this occasion it appears to be a strength. Bunnings is a fantastic business, which has proven to be able to grow whatever the economy throws at it.

In addition to this, Bunnings’ owner, Wesfarmers Ltd (ASX: WES), is a major shareholder of BWP. As a result, Wesfarmers is unlikely to do anything that would hurt its investment, such as mass lease terminations.

Pleasingly, BWP has been on form again this year. It recently released its first half results for FY 2021 and revealed profit growth of 6% over the prior corresponding period to $144 million.

This positive form allowed the BWP board to reaffirm its plans to pay a full year distribution of ~18.3 cents per share. Based on the current BWP share price, this represents a generous 4.6% dividend yield.

Rural Funds Group (ASX: RFF)

Rural Funds is a leading owner of agricultural property. It currently owns a $1.1 billion portfolio of diversified agricultural assets, including almond and macadamia orchards, premium vineyards, water entitlements, cattle and cropping assets. These are all leased to high quality and experienced tenants. This includes wine giant Treasury Wine Estates Ltd (ASX: TWE).

One of the main attractions to the company for investors is its long term leases. These provide the company with great visibility on its future earnings, allowing it to target consistent distribution growth each year. At the end of the first half, Rural Funds’ weighted average lease expiry (WALE) stood at a sizeable 11.1 years.

In FY 2021 Rural Funds intends to pay a 11.28 cents per share distribution and then an 11.73 cents per share distribution next year. Based on the current Rural Funds share price, this equates to 4.85% and 5% yields.

More reading

• ‘Remarkable resilience’ in Aussie farmland a tailwind for ASX agriculture shares
• 2 ASX dividend shares to buy in April
• 2 outstanding ASX shares for your retirement portfolio
• 2 quality ASX dividend shares with generous yields
• 2 ASX dividend shares for steady income in retirement

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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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On Wednesday the S&P/ASX 200 Index (ASX: XJO) was on form and ended the month on a very positive note. The benchmark index rose 0.8% to 6,790.7 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 futures pointing higher

The Australian share market looks set to start the month in a positive fashion following a solid night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 30 points or 0.45% higher. In late trade on Wall Street, the Dow Jones is up 0.1%, the S&P 500 has risen 0.8%, and the Nasdaq has jumped 2%.

Tech shares on watch

It could be a good day for ASX tech shares such as Xero Limited (ASX: XRO) and Zip Co Ltd (ASX: Z1P) on Thursday after US tech stocks surged higher during overnight trade. At the time of writing, the tech-focused Nasdaq index is up a sizeable 2%. Strong gains by a number of tech giants have helped drive the index higher.

Oil prices weaken

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could trade lower today after oil prices weakened. According to Bloomberg, the WTI crude oil price is down 2.3% to US$59.16 a barrel and the Brent crude oil price has fallen 0.9% to US$63.57 a barrel. This follows news that OPEC has lowered its 2021 demand growth forecast due to a slower than expected recovery.

Gold price rebounds

Gold miners Newcrest Mining Ltd (ASX: NCM) and Resolute Mining Limited (ASX: RSG) could be on the rise today after the gold price rebounded. According to CNBC, the spot gold price is up 1.4% to US$1,709.30 an ounce. This was driven by a softening US dollar. Despite this solid gain, the precious metal is on course to have its worst quarter in over four years.

Suncorp rated as a buy

The Suncorp Group Ltd (ASX: SUN) share price could be in the buy zone according to analysts at Goldman Sachs. This morning the broker retained its buy rating but trimmed its price target slightly to $12.05. Goldman has reduced its earnings estimates by 5% for Suncorp in FY 2021 to reflect the flood claims. However, it still sees enough value in its shares at this level to retain its buy rating.

More reading

• ASX 200 finishes quarter strongly, Zip partners with JB Hi-Fi, Suncorp gives flood update
• Is the ASX tech sector in for more pain?
• Afterpay (ASX:APT) also signs deal with JB Hi-Fi & The Good Guys
• The Zip (ASX:Z1P) share price is seesawing today on partnership news
• ASX 200 jumps 1.35%: Zip inks deal with JB Hi-Fi, Suncorp’s flood update

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The S&P/ASX 200 Index (ASX: XJO) has risen 0.8% in the final day of the quarter to 6,791 points.

These are some of the highlights from the ASX today:

Zip Co Ltd (ASX: Z1P) wins a big new merchant

Zip announced today that it has entered into a partnership with JB Hi-Fi Limited (ASX: JBH).

If you didn’t know, JB Hi-Fi operates both JB Hi-Fi stores and The Good Guys. It’s one of Australia’s largest technology and entertainment retailers.

Zip will provide its interest-free payments solution for both of JB Hi-Fi’s businesses, both in-store and online.

Peter Gray, the co-founder and chief operations officer of Zip, said:

We are delighted to partner with the JB HI-FI Group. We look forward to providing customers with choice at checkout, empowering them to own the way they pay at JB HI-FI and The Good Guys. This strategic partnership provides Zip customers with access to even more of Australia’s favourite brands, further delivering on Zip’s mission to be the first payment choice everywhere and every day.

Zip is anticipating this partnership will be launched to market in April 2021.

The Zip share price grew by 0.4% today.

Suncorp Group Ltd (ASX: SUN)

Today, Suncorp gave an update on the expected financial impact from the heavy rainfall and flooding across NSW, South East Queensland and Victoria.

The ASX 200 share has received over 7,600 claims across all three states. The insurer is expecting that number to rise as customers gain access to affected regions and the extent of damage becomes clear.

The CEO of Suncorp, Steve Johnston, said:

Suncorp continues to work with our customers, particularly in the hardest-hit areas of the mid-North Coast of NSW and Western Sydney.

Floods too frequently devastate communities across Australia, which is why as a country we must address this risk. Unfortunately, many homes in Richmond, Windsor, Penrith, Port Macquarie and Taree are in medium to very high flood risk areas.

As a country, we need to address how we can protect homes in flood-prone regions through government investment in mitigation infrastructure. We must also improve planning decisions to ensure we are not building new homes in high-risk areas.

Based on claims lodged to date and the group’s preliminary assessment of damage, Suncorp estimates net claims costs in relation to this event will be $230 million to $250 million. Suncorp expects the majority of claims to be attributed to a single event across all three states for reinsurance purposes. The costs of this event will be capped at $250 million under the group’s main catastrophe program.

Spirit Technology Solutions Ltd (ASX: ST1)

Spirit Technology announced an acquisition today.

It’s acquiring Nexgen, which has over 5,500 data and voice business customers with 4,000 being contracted and recurring. The average contract term is 4.5 years with no customer concentration. It also has more than 100 sales team members that will be joining Spirit to sell Nexgen products and cross-sell Spirit’s internet, cloud, voice, mobiles and cyber security.

Nexgen is expected to generate $36 million of revenue and is tracking to a forecast of FY21 earnings before interest, tax, depreciation and amortisation (EBITDA) of between $7.2 million to $7.6 million. The implied multiple is 6.5x with the completion payment (including a deferred component of $10 million) capped at $50 million.

Spirit Technology will have over 10,500 business customers after the acquisition.

To fund this, it has successfully conducted a placement to institutional and sophisticated investors raising $23.8 million and its debt facility has been increased by $10 million to $25 million.

More reading

• Is the ASX tech sector in for more pain?
• Afterpay (ASX:APT) also signs deal with JB Hi-Fi & The Good Guys
• Why Aristocrat Leisure, Opthea, PointsBet, & Spirit are storming higher:
• The Zip (ASX:Z1P) share price is seesawing today on partnership news
• ASX 200 jumps 1.35%: Zip inks deal with JB Hi-Fi, Suncorp’s flood update

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of SPIRIT TC FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended SPIRIT TC FPO. 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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Are you looking to add a growth share or two to your portfolio next month? Then take a look at the two ASX shares listed below.

Here’s why they could be growth shares to buy right now:

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company that provides businesses with a unified platform to streamline a wide range of processes.

It has been a strong performer in recent years and pleasingly this continued in FY 2021 despite the pandemic. Last month ELMO released its half year results and revealed that its annualised recurring revenue (ARR) had grown to $74.2 million. This was driven by a combination of organic growth and the benefits of acquisitions that have strengthened its offering and increased its addressable market.

Morgan Stanley was pleased with its half year results and put an overweight rating and $9.70 price target on its shares. It is confident on its second half prospects and appears confident it will achieve its FY 2021 guidance.

Pro Medicus Limited (ASX: PME)

Another growth share to look at is Pro Medicus. It is a healthcare technology company that provides radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions to healthcare organisations globally.

It has been performing positively during the pandemic and reported strong revenue and profit growth last month. For the six months ended 31 December, Pro Medicus delivered a 7.8% increase in revenue to $31.6 million and a 25.9% jump in underlying profit before tax to $18.76 million.

Pleasingly, since the end of the half the company has won a number of lucrative long term contracts with major healthcare institutions. And thanks to its industry-leading software, its sizeable market opportunity, and the shift away from legacy systems, it wouldn’t be a surprise to see more contract wins in the coming months. 

Goldman Sachs is a fan and recently upgraded Pro Medicus’ shares to a buy rating with a $53.80 price target. It believes it is well-positioned to grow its earnings at a rapid rate over the coming years.

More reading

• 2 strong ASX mid cap shares to buy
• 2 ASX tech shares growing rapidly to buy
• 2 ASX shares delivering irresistible growth
• ELMO (ASX:ELO)’s disappointing Supreme Court decision revealed
• 3 ASX Healthcare shares feeling a little under the weather

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 and recommends Elmo Software and Pro Medicus Ltd. The Motley Fool Australia has recommended Elmo Software and Pro Medicus 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 Euro Manganese Inc CDI (ASX: EMN) share price has surged 8.8% to 68 cents today after the company posted a series of positive investment results in its tranche placement announcement. More impressively, it’s up 655% over the past 12 months as one of the relatively few manganese producers worldwide.

Let’s take a closer look at what’s driving the battery minerals company today.

What did Euro Manganese announce?

Today’s Euro Manganese share price movement follows news of its closure of the first tranche of its $30 million private placement.

The tranche comprised the sale and issue of around 41.6 million CHESS Depositary Interests (CDIs) at 60 cents per CDI. Proceeds will go towards expanding its Chvaletice manganese extraction project and there is a second tranche to come, involving the sale of 8.3 million CDIs by May.

The Euro Manganese share price rise is also due to the company’s support from the European Institute of Innovation & Technology (EIT), a European Union investment fund focused on supporting clean energy projects. EIT is providing Euro Manganese three grants totalling approximately $385,000. 

The company also advised it had benefitted from the Czech Republic’s Ministry of Industry and Trade decision to extend its investment incentive tax credits until 2025.

Management commentary

When Euro Manganese first announced its $30 million private placement 9 days ago, its CEO Marco Romero said that demand for the mineral was constantly improving.

The demand for high-purity manganese products continues to grow and the latest market developments have further improved our prospects. Volkswagen Auto Group recently announced plans to use a high proportion of manganese in the batteries that will be used in the largest segment of its future electric vehicle production.

This financing will allow us to complete all site and technical work required for a final investment decision expected in 2022. Euro Manganese is clearly in the right place at the right time.

A closer look at Euro Manganese Inc

The Canadian small-cap battery materials company is a dual-listed company on the ASX as it focuses its mineral exploration, not in Canada or Australia, but in the mining exploration destination of the Czech Republic. 

The company’s Czech Republic project, titled Chvaletice, is producing high-purity electrolytic manganese metal and high-purity manganese sulphate monohydrate. Its manganese products are aimed at the electric vehicle (EV) industry, which is expected to increasingly demand manganese as a critical metal for its batteries.

In a sense, both Euro Manganese and the Czech Pardubice District lucked out on its current global manganese significance, as Euro Manganese is simply reprocessing a large deposit of manganese carbonate contained in waste from historical mining operations at the site.

But, like many rare earth metals miners, its potential profitability is a little more complicated than it looks…

What is manganese?

Manganese is an interesting precious mineral often found in combination with iron, as it’s not a free element in nature. It’s currently an essential ingredient in the development of steel and is also used in animal feed.

However, until recently, it flew under the radar of the United States and other large mining nations, which may help explain why Euro Manganese is focused on the Czech Republic.

Manganese has a growing role in the production of electric vehicle batteries, as a key ingredient in lithiated manganese dioxide (LMD) batteries. A typical LMD battery uses 61% of manganese and only 4% lithium and reportedly has numerous benefits over lithium-ion batteries, including higher power output, thermal stability, and improved safety. 

As is the case with many of these precious metals that could play a key role in renewable energy technology, the rate of supply and demand is constantly changing as large nations play catch-up and often attempt to stranglehold emerging markets.

Since the US added manganese to its “critical materials” list in 2017 in anticipation of this increase in demand, the price has been incredibly volatile and that’s had an equally volatile impact on the Euro Manganese share price.

More reading

• Why the Euro Manganese (ASX:EMN) share price is volatile this week
• Mining companies with ESG strategies are at the front of the pack

Motley Fool contributor Lucas Radbourne-Pugh 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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