• Why the Kalium Lakes (ASX:KLL) share price is leaping 7% today

    bhp share price

    The Kalium Lakes Ltd (ASX: KLL) share price is charging higher today, up 10% in morning trade and still almost 7% higher at the time of writing.

    The ASX resource share is focused on sulphate of potash (SOP) production. SOP is a high yielding fertiliser used in Australia and internationally. According to the company, there is currently no SOP produced domestically.

    Below we take a look at the company’s latest announcement regarding its Western Australia Beyondie SOP project.

    What did the company announce?

    The Kalium Lakes share price is soaring after the company reported a major capacity upgrade at its Beyondie SOP Purification Plant.

    According to the release, the final plant design indicates SOP production of at least 100 kilotonnes per annum (ktpa) is achievable. The company added that the additional short-term and “low capital intensity production” opportunities are under review to reach a potential of 120 ktpa of SOP.

    Further down the track, Kalium Lakes reported it is assessing other options to get the most value from the project, which includes expanding SOP production to 400 ktpa along with extracting by-products like magnesium for commercial use.

    Commenting on the upgrade, Rudolph van Niekerk, Kalium Lakes CEO said:

    We are pleased to announce that a ‘debottlenecking’ style review of the plant design for the Beyondie SOP Project confirms that an annual steady-state production rate of at least 100ktpa is achievable. Additionally, the current evaporation ponds’ performance indicates that this production rate can be achieved by mid-2022.

    The company is also confident that a production increase to 120ktpa can be achieved without the need for substantial plant modifications and is currently examining pathways to deliver this outcome…. The current resource would support 400ktpa of SOP production for 20+ years…

    Kalium Lakes share price snapshot

    Over the past 12 months, Kalium Lakes shares have gained almost 44%, slightly trailing the 48% gains delivered by the All Ordinaries Index (ASX: XAO).

    Year to date, the Kalium Lakes share price is up 15%.

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    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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  • Australian Strategic Materials (ASX:ASM) share price on watch after trading halt

    asx share price on watch represented by investor looking through magnifying glass

    The Australian Strategic Materials (Hldngs) Ltd (ASX: ASM) share price will be one to watch when it resumes trading. The company requested to be placed in a trading halt in anticipation of a capital raising announcement.

    The ASM share price closed at $4.99 yesterday. This was down 3.48% from the previous days close. In comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) closed yesterday down 0.06%.

    Currently, we do not know yet how much capital ASM will raise, or for what purpose it will be used. However, we can get insight by looking at their business movements over the recent past.

    Company background

    ASM is involved in producing and mining rare earth elements (REE). REEs include cerium, neodymium, europium, yttrium, and promethium among others. Its main site is located near Dubbo, New South Wales.

    According to Geoscience Australia, REEs are used in a variety of everyday technology. These include magnets and super magnets, motors, metal alloys, electronic equipment, batteries, catalytic converters, petroleum refining, medical imaging, and more.

    Just over the last couple of months, ASM made 4 price-sensitive announcements to the ASX. However, each has had mixed results on the ASM share price.

    The first saw titanium powder produced by the company approved for 3D printing. The second announcement confirmed certain ASM alloys were suitable for producing permanent magnets. The third declared a scoping study supported a $45 million plant build in Korea. Meanwhile, the fourth announced a deal between ASM and a Korean province about the said plant.

    The plant will be located 115km south of Seoul. It will produce neodymium-iron-boron powder and titanium powder. The government will provide grants and tax breaks to ASM as part of the deal.

    Share price snapshot

    Since listing on 30 July 2020, the ASM share price has increased by a whopping 256.43%. It is, however, down 27.05% than its record high of $6.84.

    The company was listed on the All Ordinaries Index just in the last couple of weeks.

    At its current valuation, ASM has a market capitalisation of $600.6 million.

    Where to invest $1,000 right now

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

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  • Why volatility is awesome

    volatile as share price represented by scared looking people on roller coaster

    Share markets have been on a stomach-churning ride the past few weeks and many rookie investors will be experiencing losses for the first time after a boom 2020.

    “It’s been pretty violent,” said Forager Funds portfolio manager Harvey Migotti.

    “We certainly saw quite a bit of complacency developing in the market, a lot of retail investors investing in businesses that sound sexy on paper, whether it’s renewables or EVs or whatever else.”

    Migotti told a Forager video that growth company valuations had “got ahead of themselves” and that the downturn was not a bad development.

    “You needed this correction. I’m actually really happy for it because you had a bit of a rise in rates, a bit of a rotation into some of the beaten up sectors to come to more normalised valuations,” he said.

    “I think it’s been healthy. The market was acting a bit unhealthy for my liking and this has been good.”

    For those first-timers, Migotti reminded them volatility is a golden opportunity.

    Is it time to buy shares?

    Migotti said that Forager had entered this period with “a good pile of cash” and recently bought into two undisclosed stocks.

    “We love that volatility because it allows us to buy really good high quality assets at a discounted price. Both of these happen to be in the growth bucket.”

    He felt both purchases, which his team had been monitoring for months, have a decent chance of becoming a “free kick”.

    “Names that have fallen 40% from the highs, for no particular fundamental reason just to kind of get caught up in the rotation and, and various other things,” he said. 

    “It’s been great from that perspective.”

    25% of portfolio was bought since January

    Migotti revealed that a quarter of his fund’s holdings had been purchased since January.

    “It’s exciting and I’m excited as ever about the potential here,” he said. 

    “I think the rotation has been great. It’s a good time to both invest in us and buy parts of the market that have pared back. There’s always opportunities, is what I’d say.”

    Forager chief investment officer Steve Johnson wished the party would last a bit longer.

    “You get the price falls and often you get a lot of liquidity that comes with that as, as people start to run for the exits,” he said.

    “To be honest, we hope the volatility continues over the coming months and years.”

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  • ASX 200 up 0.45%: Premier Investments results, Xero acquisition, Computershare halted

    investor looking excited at rising asx 200 share price on laptop

    At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) has recovered from a soft start and is pushing higher. The benchmark index is currently up 0.45% to 6,774.2 points.

    Here’s what is happening on the market today:

    Computershare capital raising and acquisition

    The Computershare Ltd (ASX: CPU) share price is in a trading halt on Wednesday while it undertakes a A$835 million capital raising. The stock transfer company launched the capital raising to partly fund the acquisition of the assets of Wells Fargo Corporate Trust Services. The two parties have agreed a purchase price of US$750 million (A$983.2 million). The company expects the acquisition to be at least 15% management earnings per share accretive on a pro forma FY 2021 basis including full run-rate synergies.

    Premier Investments half year results

    The Premier Investments Limited (ASX: PMV) share price is pushing higher today after investors responded positively to its half year results. 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 significant lift in online sales, which underpinned a material expansion in its margins.

    Xero share price higher on acquisition news

    The Xero Limited (ASX: XRO) share price is rising today after announcing a new acquisition. The cloud-based accounting platform provider is acquiring e-invoicing infrastructure business Tickstar for up to SEK 150 million (~A$22.9 million). This comprises an upfront payment of SEK 60 million and earnout payments of up to SEK 90 million. These earnouts will be based on product development and performance milestones. Sweden-based Tickstar allows organisations such as Xero and its customers to connect to a global e-invoicing network. This enables faster and more secure transactions.

    Best and worst ASX 200 performers

    The best performer on the ASX 200 index on Wednesday has been the Costa Group Holdings Ltd (ASX: CGC) share price with a gain of almost 6%. This is despite there being no news out of the horticulture company. The worst performer has been the Lynas Rare Earths Ltd (ASX: LYC) share price with a 6.5% decline. This morning rival Australian Strategic Materials Limited (ASX: ASM) announced plans for a material capital raising.

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  • Why the Hawkstone (ASX:HWK) share price rocketed 35% higher today

    A lithium battery with blue power background, indicating positive share price movement for clean ASX lithium miners

    The Hawkstone Mining Ltd (ASX: HWK) share price stormed more than 35% higher in early trade today. The price action follows a positive announcement released this morning.

    At the time of writing, the Hawkstone share price is trading 18.9% higher at 4.4 cents after hitting an intra-day high of 5.2 cents.  

    Here’s why investors are jumping on Hawkstone shares today.

    Battery grade lithium carbonate produced

    In its release, Hawkstone advised it has completed an initial metallurgical testing program. The company conducted testing on lithium-mineralised sedimentary material from the company’s Big Sandy Lithium Project in the US state of Arizona.

    Hawkstone announced that testing had produced lithium at 99.8% Li2CO3 purity. The company also noted high lithium recoveries of 90.7% while removing impurities with minimal lithium losses.

    As a result, the product meets the purity specifications of major international battery manufacturers. In addition, the results exceed the Benchmark Mineral Intelligences battery grade of greater than 99.5% purity.

    Hawkstone’s management noted that the results were highly significant and would enable further testing and a pilot plan design.

    Hawkstone managing director Paul Lloyd commented:

    We have a potentially large lithium resource and are able to produce high quality product in a market with a rapidly increasing demand and price.

    How has the Hawkstone share price performed?

    The Big Sandy Project is Hawkstone’s flagship lithium project boasting 320,700 in joint ore reserves (JORC). The company also operates the Lordsburg Project in New Mexico.

    The Hawkstone share price is currently trading more than 385% higher in 2021. Shares in the lithium miner have surged after opening the year at around 1.0 cent each, hitting a 52-week high of 6.4 cents earlier in the year.

    Investors have been flocking to buy shares in Hawkstone, given the global demand for battery grade lithium. According to the company, surging lithium prices are the result of a changeover from carbon-based energy to green alternatives.

    In today’s announcement, Hawkstone noted that the Benchmark Mineral Intelligence on 15 March quoted a price of US$12,625 per tonne of lithium with greater than 99.5% purity.

    Following today’s announcement, Hawkstone expects permit approvals within 30 days, with drilling ready to mobilise immediately.

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  • Piedmont Lithium (ASX:PLL) successfully completes US public offering

    A US flag behind a graph, indicating investment in US shares

    Piedmont Lithium Ltd (ASX: PLL) has announced the successful completion of its underwritten public offering. This consists of 1.75 million of its American Depository Shares (ADS) with gross proceeds of US$122.5 million or A$159.1 million. Each ADS represents 100 of the company’s ordinary shares listed on the ASX. 

    Fresh funds to drive Piedmont Lithium operations 

    Piedmont is working through a number of prerequisites to emerge as the only US integrated hydroxide from the spodumene project. 

    The company’s 25,000-meter drill program is underway and expected to provide a mineral resource update in April 2021. Piedmont is targeting the completion of its infill drilling operations by August 2021. 

    Coinciding with drilling activities, a definitive feasibility study (DFS) is scheduled for completion in the September quarter. The completion of an integrated DFS will be the key to advancing the project financing and construction phase.

    If all things go to plan, the company expects construction operations to be completed in 2022. Additionally, Piedmont expects the lithium chemical plan to be completed in 2023.

    A step closer to make Nasdaq primary listing 

    The completion of Piedmont’s public offering takes the company one step closer to redomicile its shares. This will involve a transfer from Australia to the US. 

    Additionally, this move will be in-line with the company’s strategy to grow its US investor pool. It will also leverage cheaper funding from the world’s largest economy.

    Similarly, Mesoblast Limited (ASX: MSB) has taken a similar approach in listing on the Nasdaq. Ultimately, this will help the company overcome the significant capital burden of clinical trials to advance its portfolio of medicines.

    Piedmont will also likely require additional financing after the completion of its drilling and DFS to fund the construction of its lithium plant. A primary listing in the US would therefore help the company diversify and de-risk both current and future funding requirements.

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  • What’s with the Investigator Resources (ASX:IVR) share price today?

    flat asx share price represented by investor shrugging

    The Investigator Resources Ltd (ASX: IVR) share price is on the move today, up 1.5% in early trade but now trading 1.2% lower at 8.2 cents.

    We take a look at the ASX resource share’s latest silver drill results.

    What did Investigator Resources report?

    The Investigator Resources share price is slipping this morning despite the company reported promising new silver assay results at its 100% owned Paris Silver Project, located in South Australia.

    The latest results come from a 20,500-metre infill drilling campaign completed in December.

    Topping the high-grade results was 1 metre at 8,210 grams of silver per tonne from 61 metres.

    Investigator Resources said other significant results included:

    – 19m @ 561g/t silver from 55m in hole PPRC657 (on Line -0.25); including

    • 8m @ 1,240g/t silver from 59m; including

    – 19m @ 227g/t silver from 96m in hole PPRC678 (on Line -0.5); including

    • 14m @ 290g/t silver from 96m

    The company said these results support the silver grade and mineralisation extension from previous exploration assays, with the potential for mineralisation extension to the east and west.

    What did management say?

    Commenting on the drill results, Investigator’s managing director Andrew McIlwain said:

    Reporting the highest-grade intersection of the 2020 infill drill program in Line -0.25 is really encouraging as we are still seeing significant mineralisation in the southern most line of drilling completed in this program, a further 25m south in Line -0.5.

    We are confident that the results reported here continue to support our view of the improved continuity of grade and confidence in location of mineralisation in the Paris Silver Project. As previously mentioned, the continuing trend of high-grade mineralisation observed to the south of previously reported results bodes well for inclusion in the upcoming re-estimation of the resource.

    McIlwain added that Investigator now needed to put the results together and complete its revised resource estimate for the Paris Silver Project.

    The company expects to provide the revised resource estimate before May.

    Investigator Resources share price snapshot

    The Investigator Resources share price has shot the lights out over the past 12 months, up an eye-popping 740%. That far outpaces the 47% gain posted by the All Ordinaries Index (ASX: XAO).

    Year-to-date, the Investigator Resources share price is down 7%.

    Where to invest $1,000 right now

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  • Why Alcidion, GrainCorp, Premier Investments, & Xero are storming higher

    In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. At the time of writing, the benchmark index is up a decent 0.45% to 6,775 points.

    Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

    Alcidion Group Ltd (ASX: ALC)

    The Alcidion share price has jumped a sizeable 9% to 30.5 cents after announcing a new contract win. According to the release, the healthcare technology company has signed a contract with East Lancashire Hospitals NHS Trust for its Patientrack and Smartpage solutions. The contract is estimated to be worth a total of $2.2 million over five years.

    GrainCorp Ltd (ASX: GNC)

    The GrainCorp share price is up over 2% to $4.82. Investors have been buying the grain exporter’s shares after it announced new operating initiatives that are expected to boost its earnings. According to the release, GrainCorp is forecasting a $25 million boost in annualised EBITDA by 2023-24 thanks to these initiatives.

    Premier Investments Limited (ASX: PMV)

    The Premier Investments share price is up almost 3% to $23.85 following the release of its half year results. The retail conglomerate reported a 7.2% increase in global sales to $784.6 million for the half. A key driver of this growth was the Peter Alexander business which delivered a 43.4% increase in sales to a record $207.7 million. On the bottom line, thanks to improved margins, the company’s first half net profit after tax jumped 88.9% to $188.2 million.

    Xero Limited (ASX: XRO)

    The Xero share price is up 3.5% to $125.48 after announcing a new acquisition. The business and accounting platform provider is acquiring e-invoicing infrastructure business Tickstar for up to SEK 150 million (~A$22.9 million). Sweden-based Tickstar allows organisations such as Xero and its customers to connect to a global e-invoicing network. This enables faster and more secure transactions.

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    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 Alcidion Group Ltd. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended Alcidion Group 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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  • Clinuvel (ASX:CUV) share price falls despite positive update

    laboratory microscope

    The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price is tumbling in early morning trade. This comes despite releasing an update to the market. At the time of writing, the biopharmaceutical company’s shares are swapping hands for $27.99, down 2.3%.

    What did Clinuvel announce?

    The Clinuvel share price is being weighed down by investors despite the company’s positive announcement.

    According to this morning’s release, Clinuvel advised that it has now expanded its DNA repair program. The clinical trials will now evaluate afamelanotide in skin cells which have been damaged by ultraviolet (UV) and sun exposure. Patients suffering from rare diseases such as XP-V and XP-C will be included in the study.

    Following an agreement by clinical and academic experts, Clinuvel will seek to evaluate the safety and efficacy of afamelanotide.

    The company explained how UV radiation damages skin cells, causing defects of the DNA helix. It noted that if left unrepaired, chemical changes to DNA could replicate, thus leading to irreversible damage (photoaging). Continued exposure could also progress to skin cancer, including melanoma.

    XP patients in particular have genetic defects that contain impaired DNA repair processes. Thus, leading to an extreme risk of skin cancer. This is unlike most individuals who are able to protect themselves for UV damage and repair cellular DNA.

    Afamelanotide is an active ingredient in SCENESSE. Moreover, it improves the function of skin cells that have been damaged. Clinuvel hopes that conducting trials with afamelanotide will produce the first positive results sometime this year.

    Management commentary

    Clinuvel chief scientific officer Dr. Dennis Wright commented:

    XP patients are at extreme risk of skin cancer – up to 10,000 times that of the general population – due to their inability to repair damage caused by UV and sunlight, known as photodamage.

    Afamelanotide has been shown to protect skin from UV and light, and repair photodamage. We are now working to confirm this concept in clinical trials with both XP patients and healthy volunteers.

    About the Clinuvel share price

    The Clinuvel share price has gained over 60% since this time last year. Currently, the share price is up 25% year-to-date. It’s worth noting that the company’s shares reached a 52-week high of $28.80 earlier this month.

    Based on valuation grounds, Clinuvel commands a market capitalisation of around $1.38 billion, with 49.4 million shares on issue.

    Where to invest $1,000 right now

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  • Down 18%: Is the CSL (ASX:CSL) share price a buy?

    biotech shares

    Is the CSL Limited (ASX: CSL) share price a buy right now? It has dropped around 18% since November 2020, though it went as low as $246 earlier in the month.

    What has been going on with the CSL share price?

    A key problem for CSL over the last year has been the difficulty in collecting plasma.

    CSL said that COVID-19 is adversely impacting plasma collections. The collection volumes in December 2020 was only around 80% of what it collected in December 2019. The healthcare giant is also suffering from incurring additional collection costs to get that plasma. This is important because it’s a key part of the business.

    The healthcare giant is doing a number of initiatives to try to help the plasma division. It is doing more targeted marking initiatives to increase collections, it’s adopting new technology and it’s trying to “satisfy donors” with a positive experience.

    CSL believes the roll out of COVID-19 vaccines will increase mobility and this could help collections.

    The company has also reduced the plasma hold period from 60 days to 45 days.

    CSL continues to rollout new collection centres which should boost the overall collection volume. It opened 17 new centres in the first half of FY21, with 12 expected to open in the second half. CSL boasted that it has the largest and most efficient centres in the industry.

    The overall FY21 half-year result was largely strong. Revenue increased 15% in constant currency terms. Seqirus revenue jumped 38% thanks to significant demand for seasonal influenza vaccines and albumin sales went up 93% as China sales normalised thanks to a transition in its distribution.

    The bottom line net profit after tax (NPAT) grew 44% in constant currency terms to $1.8 billion.

    Where to now for the CSL share price?

    CSL is expecting that the FY21 result will be heavily skewed to the first half. Around 80% of Seqirus sales in the first half and costs falling more evenly over the year – leading to a loss for the division in the second half.

    Albumin sales are normalised after the transition, but plasma collections have constrained sales and elevated costs.

    CSL continues to invest in research and development – it’s expecting to spend around 10% to 11% of revenue, in line with guidance.

    But CSL did suggest that multiple, large late stage R&D programs are underway providing the potential for new growth opportunities.

    But FY22 immunoglobulin and albumin sales are reliant on current plasma collections and cycle times.

    The company says that it’s well placed to emerge strongly when the COVID-19 crisis recedes.

    What do brokers think?

    In recent weeks, some brokers have turned positive on the CSL share price potential after its decline.

    For example, Morgans has a share price target for CSL of just over $300 and it thinks its shares look better value now. It also suggested that the Seqirus business could see higher demand for an extended period due to the demand to protect against the normal annual flu season.

    Credit Suisse just changed its rating on CSL shares to a buy with a price target of $315. Whilst the broker is aware that CSL could face disruption in the plasma sector from competition with new products, there is still a strong worldwide demand for plasma and CSL could keep growing regardless of that.

    On Credit Suisse’s numbers, the CSL share price is valued at 37x FY21’s estimated earnings.

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    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 CSL Ltd. 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 Down 18%: Is the CSL (ASX:CSL) share price a buy? appeared first on The Motley Fool Australia.

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