If one was to look at some of the best performing ASX shares today, no doubt the Lion Energy Ltd. (ASX: LIO) share price would have caught the eye. Lion Energy shares are up an extraordinary 132.14% today to 6.5 cents per share. Yes, Lion opened at 3 cents a share this morning. That’s pretty much the price this company has been bumping along at for the past few months. But shortly after open, a rocket was lit under Lion shares and they soared as high as 8.5 cents. That was a gain of more than 183% at one point. Even after the company settled at 6.5 cents a share, it’s still an eye-popping 132% gain. Just for some context, that gain would have turned $10,000 worth of Lion Energy shares yesterday into a $23,210 position in 24 hours.

Lion is now in a trading halt, frozen at 6.5 cents a share. But let’s take a look at what sparked this incredible share price appreciation today.

Lion Energy share price rockets on oil find

Today’s dramatic share price appreciation is almost certainly the result of Lion Energy’s announcement to the markets this morning before open. In this announcement, Lion informed investors that one of its ventures – the Oseil Oil Field – houses significantly higher oil reserves than was previously anticipated. According to the company, Oseil’s proven and probable reserves are now estimated at 4.37 million barrels of oil equivalent (MMbbl). Lion Energy has a 2.5% interest in Oseil. That means the company now estimates that its share of these oil reserves now stands at 0.109 MMbbl. That’s a 203% increase on what its precious estimates were. 

Further, Lion Energy has also upgraded its estimates for Oseil’s ‘undeveloped’ reserves. It was previously estimated that Oseil held 0.281 MMbbl in unproven reserves. That has been upgraded to 1.796 MMbbl.

With these massive upgrades in this oil field’s estimated reserves, it’s no surprise investors reacted so bullishly this morning.

What about the share trading halt?

As mentioned earlier, Lion Energy shares are now (as of 11:47 am) in a trading halt after their stellar performance this morning. At 12:53 pm, the company released a further release stating that the company has requested a trading halt, pending the release of an announcement. Lion tells us that it will remain halted until 15 April at the latest. That’s all we know for now. But Lion Energy shareholders will no doubt be pretty pleased with what has happened today. At the current share price, Lion Energy has a market capitalisation of $12.58 million.

More reading

• The DroneShield (ASX:DRO) share price is flying 6% today. Here’s why
• Here’s why Microsoft just spent $19.7 billion to acquire nuance communications
• What’s driving the Bitcoin price higher?
• Here’s why the Next Science (ASX:NXS) share price is sinking 6% lower
• Why the Starpharma (ASX:SPL) share price is up 27% in 2021

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

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The DroneShield Ltd (ASX: DRO) share price is taking off today after the company shared the news it has received a $2.3 million payment. The payment was the remaining balance on an order from the Middle Eastern Ministry of Defence.

Today, the DroneShield share price reached an intraday high of 19.5 cents, up 14.7%. It has since retreated to 18 cents at the time of writing, which is still 5.88% higher than yesterday’s closing price.

Let’s take a closer look at the company’s news.

$2.3 million payment

In 2018, DroneShield announced it had received an order from the Middle Eastern Ministry of Defence for 70 DroneGun tactical jammer products.

At the time, the company stated the total cost of the order was $3.2 million. Shipping of the order was completed in March 2020.

DroneShield expects the Middle Eastern Ministry of Defence to be a repeat customer, with the next order anticipated to be worth between $60 million and $70 million.

In 2018, DroneShield stated the order from the ministry was the largest known order of tactical drone mitigation equipment ever made. It was also DroneShield’s first multimillion-dollar order.

Today’s news boosting the DroneShield share price follows a busy few weeks for the company. It has recently won multiple contracts globally, including a $1.1 million repeat order contract with a Five Eyes agency, an initial order from a high profile US law enforcement agency, and multiple DroneSentry-XTM orders.

Management commentary

DroneShield CEO Oleg Vornik commented on the final payment for the order, saying:

In addition to the material value of this cash receipt, it demonstrates several critical points. Firstly, it shows that DroneShield is able to successfully navigate doing business in one of the most challenging yet most lucrative regions globally for Western companies, in terms of successful management of stakeholders and achieving outcomes.

Secondly, this is the completion of a repeat purchase by this end user, with the next contract expected to be a much larger amount…

Thirdly, this underscores the global leadership positioning of DroneShield products, and our best-in-breed performance, as confirmed by this customer who faces daily UAS threats on their home soil, like no other customer globally.

DroneShield share price snapshot

The DroneShield share price has been having a productive year on the ASX, with today’s news just the latest boost.

Currently, it is up 5.88% year to date, but an impressive 63.6% over the last 12 months.

DroneShield has a market capitalisation of around $66 million, with approximately 389 million shares outstanding.

More reading

• The DroneShield (ASX:DRO) share price will be on watch this morning. Here’s why
• DroneShield (ASX:DRO) share price rises on new customer order
• Droneshield (ASX:DRO) share price moving on multiple product orders
• Here’s why the DroneShield (ASX:DRO) share price is flying 8%

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

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Microsoft (NASDAQ: MSFT) confirmed rumors today that it would acquire Nuance Communications (NASDAQ: NUAN) in an all-cash transaction valued at $19.7 billion, including assumption of the company’s debt. The tech giant sees the deal as a way to boost its own ambitions in the realm of artificial intelligence (AI). Nuance is a pioneer in conversational AI, or technology that can understand and respond to voice commands. 

Nuance made its fortunes by developing software that’s capable of understanding, responding to, and transcribing human speech. The tech is used by doctors’ offices to keep patients’ medical records accurate and up to date. The company’s enterprise segment uses natural language understanding to provide voice mail transcription services, while also powering AI chatbots used in customer service.

In recent years, Microsoft has been working to expand its industry-specific cloud offerings, and the acquisition of Nuance will boost the Microsoft Cloud for Healthcare, which was introduced late last year. Nuance has several industry-leading software-as-a-service offerings including Dragon Ambient eXperience, Dragon Medical One, and PowerScribe One for radiology reporting, which are all built on Microsoft Azure.

Microsoft noted that Nuance products and services are currently used by more than 55% of physicians and 75% of radiologists in the U.S., as well as 77% of hospitals. This helped drive Nuance’s healthcare cloud revenue up 37% year over year in 2020.

In a post on Twitter (NYSE: TWTR) Monday, Microsoft CEO Satya Nadella said: “AI is technology’s most important priority, and healthcare is its most urgent application. Together with [Nuance], we will put advanced AI solutions into the hands of professionals to drive better decision-making and create more meaningful connections.” 

The purchase price represents a 23% premium to Nuance’s closing price on Friday, and the deal is expected to close later this year. The acquisition will double Microsoft’s total addressable market in healthcare to roughly $500 billion. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Tesla and GameStop were some of the most popular US shares last week
• Zoono (ASX:ZNO) share price soars 40% on Microsoft deal
• Here are the US shares ASX investors have been buying
• Better Buy: Facebook vs. Twitter
• 2 top ASX ETFs to buy right now

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Microsoft and Twitter. 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.

Danny Vena owns shares of Microsoft. The Motley Fool owns shares of and recommends Microsoft and Twitter. The Motley Fool has a disclosure policy.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Bitcoin (CRYPTO: BTC) price is up 1.3% over the past 24 hours. One Bitcoin is currently worth US$60,634 (AU$79,782).

According to data from CoinDesk, US$56.5 billion worth Bitcoin have changed virtual hands since this time yesterday.

Bitcoin has rebounded more than 18% since it traded below US$51,280 on 26 March.

What’s driving Bitcoin’s new price surge?

Simon Peters, market and crypto analyst at online trading and brokerage company eToro, says that Bitcoin’s renewed price strength is due to a range of factors. These include “new demand from institutional investors and wealth managers offering crypto asset exposure to clients”.

Peters adds that his comes as “a decline in on-exchange reserves is reducing supply as more investors move the currency to their own wallets”.

As far as institutional interest goes, State Street Corp (NYSE:STT), among the world’s biggest asset managers, intends to join the crypto market.

According to Peters:

State Street has forged a deal to lend its trading technology to start-up Pure Digital, which aims to be the main institutional platform for bitcoin. The new trading venue will enable cash crypto asset trading for investors via their existing banking relationships, with Currenex, State Street’s platform providing the underlying technology. 

The new crypto trading venue is scheduled to go live in mid-2021.

Have you calculated your rent in Bitcoin?

I don’t know about you, but my landlords of yore were quite insistent to be paid in good old dollars. Or euros, yen, rupiah, and guilders. (I’ve moved around a bit!)

But a major global landlord is breaking the mould and declaring he’s more than happy to take Bitcoin in payment for rent.

As eToro’s Peters writes:

Rick Caruso’s retail estate company, which owns the likes of outdoor malls The Grove and The Americana, alongside luxury apartments, will now accept rent in the form of bitcoin.

Alongside investing a portion of its corporate treasury in bitcoin, Caruso has entered into a partnership with Gemini, the crypto exchange and custodian led by CEO Tyler Winklevoss.

Taking a bullish outlook, Caruso commented on the move: “It’s not about the next year or five years. We’re looking forward to the next decade.”

Ten years ago you could have bought 1 Bitcoin for US$1.

If the next decade proves to be anything like the last for the Bitcoin price gains, Caruso’s current rental payments would be worth some 60,000 times more than the equivalent rent paid in fiat currency.

A bullish outlook, indeed.

More reading

• Will this Nasdaq IPO send the Bitcoin price back to record highs?
• ASX 200 Weekly Wrap: ASX sees 7,000 points once more
• With the Bitcoin price up overnight your crypto Tesla just got cheaper
• Bitcoin’s price is down 8% from February’s highs. Is it time to buy the dip?
• How Westpac (ASX:WBC) is set to cash in on Bitcoin

Bernd Struben 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 Bitcoin. 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 Next Science Ltd (ASX: NXS) share price is out of form and sinking lower on Tuesday.

At the time of writing, the medical device company’s shares are down 6.5% to $1.40.

However, despite this decline, the Next Science share price is still up 16% since the start of the year.

Why is the Next Science share price sinking today?

Investors have been selling Next Science shares today following the release of its first quarter update.

For the three months ended 31 March, the company reported unaudited revenue of US$2.2 million. This is almost five times greater than the US$0.45 million it recorded in the prior corresponding period.

However, it is down slightly from US$2.3 million during the fourth quarter of FY 2020. It could be this lack of quarter on quarter growth that is weighing on the Next Science share price today.

Management notes that the US healthcare market continued to be impacted by the high presence of COVID-19 during the quarter. This was particularly the case in January, when the impact on surgery numbers was heavier than the previous four months.

Nevertheless, despite the COVID conditions, its SurgX product continues to attract surgeon interest and support in the market.

What about cash receipts?

Next Science’s cash receipts were strong during the half. They came in at US$3.4 million for the three months. Though, with the company reporting cash receipts of only US$0.28 million in the fourth quarter on revenue of US$2.3 million, it appears as though there may have been a bit of lag in receipts.

This ultimately led to the company only burning through US$0.2 million of cash during the quarter, which left Next Science with a cash balance of US$15.1 million.

Next Science’s Managing Director, Judith Mitchell, said: “I am pleased to report that our Q4 FY20 run rate has continued and cash receipts for the quarter were also strong and we continue to see progress with the review of XPerience with the FDA.”

More reading

• Why the Starpharma (ASX:SPL) share price is up 27% in 2021
• Is it time for ASX gold shares to make a comeback?
• Why the NAB (ASX:NAB) share price could push higher from here
• Is it time to get your hopes up for the A2 Milk (ASX: A2M) share price?
• The Walkabout Resources (ASX:WKT) share price is rocketing today, up 44%

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 Nexus Energy Limited. 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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While the Starpharma Holdings Limited (ASX: SPL) share price is having a reasonable day today – up 0.77%, it’s done very well so far in 2021.

At the time of writing, shares in the pharmaceutical company are trading for $1.96 cents each. While that’s only slightly up on yesterday’s close, it’s up 26.95% since the beginning of the year and almost 120% over the last 12 months. In fact, in February, the Starpharma share price hit an all-time record of $2.52. For comparison, the S&P/ASX 200 Index (ASX: XJO) has increased 4.36% year to date.

Let’s take a closer look at developments that have impacted the Starpharma share price in 2021.

What’s affected the Starpharma share price in 2021?

The biggest factor impacting the Starpharma share price in 2021 has been its Viraleze COVID-19 nasal spray. The product, which was launched in January, has been clinically shown to kill 99.99% of COVID-19 virus loads in a person.

After launching in January, the European Union approved the product for use in its jurisdiction in February. When the company announced the news, CEO Dr Jackie Fairley said at the time:

We know from consumer research conducted with the Boston Consulting Group, that VIRALEZE has strong appeal for European consumers across all age groups. The spray is easy to use and convenient – and works rapidly, without being absorbed into the bloodstream. If you are about to walk into the supermarket, you would use it. The same is true for public transport, elevators, planes, bars and restaurants.

Obtaining the CE Mark for the spray led to the Starpharma share price hitting its record high.

One month later, the company told shareholders it would distribute the spray in the UK through LloydsPharamcy. Despite what was seemingly positive news, the share price fell that day. One explanation as to why is that investors had already factored in widespread distribution of the product after EU approval, including in the UK.

Non-COVID announcements

While the Viraleze spray was the most attention-grabbing product launch announced in 2021 by Starpharma, it was not the only one.

In February, the company announced it was expanding clinical trials on an anti-cancer treatment developed with AstraZeneca PLC (LSE: AZN). In March, Starpharma declared to the market its breast cancer treatment, DEP HER2-lutetium, had achieved “positive” results.

As well, the company posted its half-year results for FY21 in February. Starpharma lost $10.4 million for the 6 months ending 31 December. The loss was 78% greater than the prior corresponding period (pcp). The pharmaceutical company attributed the large decline to an even steeper fall in revenue. For the period, operating income was only $638,000, which was down 89% on the pcp. The Starpharma share price edged slightly lower following the update.

More reading

• Why the Starpharma (ASX:SPL) share price is tumbling lower today
• Starpharma (ASX:SPL) share price pushes higher on COVID-19 nasal spray update
• Why the Starpharma (ASX:SPL) share price is charging higher today

Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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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ASX gold shares have been spiralling lower after gold prices topped in December 2020. With ASX gold shares recently bouncing off short-term lows, is it time for a comeback? 

What’s been driving ASX gold shares lower? 

Gold prices surged from US$1,200 to US$2,075 between May 2019 and August 2020. Similar to how soaring iron ore prices have propped up iron ore miners such as Fortescue Metals Group Ltd (ASX: FMG) and BHP Group Ltd (ASX: BHP), a higher gold price drove many ASX gold mining shares into all-time record territory. 

However, unlike iron ore, which has remained at elevated levels, gold has slumped roughly 15%. Down from US$2,075 to US$1,750 in recent months. 

To add further insult to injury, the soaring Australian dollar means that gold is even weaker when converted back to local currency. 

Why operational excellence is key 

Between late 2012 and early 2016, gold prices slumped from US$1,800 to US$1,050. 

During this period, Evolution Mining Ltd (ASX: EVN) increased its total gold production. This went from 346,979 ounces at a cash cost of A$771 per ounce to 803,476 ounces at an all-in sustained cost of A$1,014 per ounce. While its share price might’ve gone nowhere during this period, the company more than doubled its output. Furthermore, creating a runway for shareholder value when gold prices picked up. 

This might bring smaller ASX gold shares such as Bellevue Gold Ltd (ASX: BGL), Perseus Mining Limited (ASX: PRU), and Ramelius Resources Limited (ASX: RMS) into the picture. In particular, as gold producers are coming off of a lower production base and greater development upside.

Perseus, for example, is forecasting a 33% increase in gold production from 137,386 ounces in 1H21 to 182,500 ounces in 2H21. This is purely driven by the contribution of a new gold mine. 

What are brokers thinking about ASX gold shares? 

Back in March, Citi believed that gold prices had peaked in this cycle. It subsequently downgraded its gold price forecasts by 5% in 2021 to US$1,800/oz. However, the long term gold price remains unchanged at US$1,400/oz. 

The broker believes that key picks in the gold sector are ones positioned to generate cash through the next cycle. 

From an operational perspective, Credit Suisse prefers Evolution Mining. This is due to its low costs, strong free cash flow generation, and a positive production outlook. It believes Evolution shares come out ahead when it comes to quality, risk, value, and growth. 

Despite its preference for Evolution, the broker did acknowledge that its peers Newcrest and Northern Star offered more upside on a higher gold price scenario. 

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why are the big ASX mining share prices slipping today?
• ASX 200 Weekly Wrap: ASX sees 7,000 points once more
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week

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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The National Australia Bank Ltd. (ASX: NAB) share price is having an interesting trading day today so far. At the time of writing, NAB shares are up 0.13% to $26.86 a share. Earlier in the trading day, NAB traded as high as $26.95 and as low as $26.69. Perhaps the market can’t quite decide what it wants today. 

Either way, it’s not a bad level for NAB to be at right now. At the current share price, NAB is just a touch below its 52-week high of $27.10 a share. And a long way from its 52-week low of $15.

As my Fool colleague Tristan Harrison pointed out yesterday, a lot has been going right for this ASX banking share. The banks’ financial position is strong, seeing as NAB has plenty of cash around. The Australian economy is also rebounding well, which is especially beneficial for a bank.

But according to a report in the Australian Financial Review (AFR), there could be further upside in the wings for NAB, as well as the other ASX banks.

An ASX banking tailwind for NAB?

According to the AFR report, David Cassidy, head of Australian equity strategy at Wilsons Advisory, believes that the ASX banks like NAB are set to enjoy another 6 months of share price appreciation. That would equate to another 15% upside to the current share prices of the ASX banks.

Mr Cassidy bases this prediction on a few factors. Firstly, what turned out to be over-provision that the banks undertook in response to the pandemic last year is set to wind down. That should allow banks like NAB to lend out more capital. That will be assisted by faster economic growth, which Mr Cassidy predicts will result in earnings upgrades. In turn, that should lead to higher dividend payouts. 

Reportedly, Cassidy is still wary of the Commonwealth Bank of Australia (ASX: CBA) share price on its current valuation and price-to-book ratio. But Cassidy tells the AFR that Wilsons is ‘overweight’ NAB. As well as Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ). Despite long-term issues, he sees a “more normalised price-to-book valuation being achieved, powered by what looks like a convincing cyclical recovery story” for these banks. 

NAB shareholders will certainly be hoping Mr Cassidy is right.

More reading

• Why the Commonwealth Bank (ASX:CBA) share price could soar 15%
• ANZ (ASX:ANZ) share price dips as bank focuses on AI automation
• Why NAB (ASX:NAB) and other bank shares are on watch today
• Can the CBA (ASX:CBA) share price break above $90?
• Is the NAB (ASX:NAB) share price a COVID recovery buy?

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. 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 longstanding market darling status of the A2 Milk Company Ltd (ASX: A2M) share price is likely causing many investors to feel frustrated and trapped. 

The company’s history of strong earnings growth has made its shares look like good value. Previously at $16 back in September 2020, at $14 levels in November 2020, and $10 levels in January. Now, here we are, at $8 in April. 

As the A2 Milk share price continues to grind lower, Bell Potter has emerged with a report on Tuesday upgrading its shares from hold to buy. At the time of writing, the A2 Milk share price is trading at $8.24, up 4.17%. 

Why there could be long-term value in the A2 Milk share price 

Bell Potter has taken a more positive view on the A2 Milk share price. This is due to the belief that issues causing its recent downgrade cycle are reversing. 

The report first highlights A2’s move to materially scale back its Australian infant milk formula (IMF) deliveries to address excess stock.

It notes that exports from Synlait Milk Ltd (ASX: SM1) to Australia were down 72% in the past 6 months since September 2020, relative to the 6 months to August 2020. Bell Potter said that “inventory infill appears to have materially contracted, addressing one element of the inventory build”.

In terms of Australian exports to China, the report highlights two sequential monthly gains in finished infant formula exports since the December 2020 lows. Interestingly, the broker did not expect an uplift to occur so early on, calling this an early sign of life. 

A2 has increasingly pointed to its China-labelled infant nutrition growth to compensate for challenging daigou channels. In its half-year results, it noted that its offline distribution footprint had expanded to 22,000 stores, up from ~19,100 at the end of 2H20. Its rapid offline expansion has translated to a 2.4% market share in China. That is up from 2.0% at the end of FY20.

Bell Potter believes its offline distribution points are approaching the ~30,000 mark in March. While this may represent a significant uplift on 1H21, it is still below leading Chinese infant brands H&H and Feihe. These have a respective ~80,000 and ~110,000 stores.

The broker believes the uplift in offline stores will attempt to mitigate the headwinds of declining births in China, which is down approximately 15% year-on-year in 2020. 

Share price finally receives an upgrade 

The report upgraded the A2 Milk share price from hold to buy with a $9.50 12-month target price. With the A2 Milk share price currently trading at $8.30, this represents an upside of 14%. 

More reading

• Why Brickworks, Imugene, Platinum, & Synlait shares are dropping today
• Synlait (ASX:SM1) share price on watch after sudden CEO exit
• Why the Bubs (ASX:BUB) share price is up 5% today
• Pivoting from infant formula, what’s next for the Jatcorp (ASX:JAT) share price?
• Is there more pain ahead for the a2 Milk (ASX:A2M) share price?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Walkabout Resources (ASX: WKT) share price is shooting up today after the company announced a US$20 million project debt facility.

The debt facility secured with CRDB Bank of Tanzania was the final step needed before beginning construction on the Lindi Jumbo Graphite Project.

At the time of writing, the Walkabout Resources share price is trading at 26 cents, up a monster 44% from yesterday’s closing price of 18 cents.

Let’s look closer at the company’s announcement this morning.

Lindi Jumbo Graphite Mine

Securing the debt facility was the final hurdle before construction of the Lindi Jumbo Graphite Project could begin. The Lindi Jumbo is owned by Walkabout’s wholly-owned subsidiary, Lindi Jumbo Limited.

The company said Lindi Jumbo’s high-grade resource outcropping at the surface was the highest reserve grade of any undeveloped graphite project in Africa.

Lindi Jumbo will cost an estimated US$32 million. Thus, the debt facility has provided the company with 62.5% of the project’s costs.

According to this morning’s release, the mine is the first non-Chinese mine to receive debt funding.

As a result of securing debt funding from CRDB Bank of Tanzania, Lindi Jumbo has stopped its negotiations with Afreximbank.

 Commentary from management

Walkabout Resources managing director Allan Mulligan said the company was delighted about the new finance facility. 

We were very keen to meet not just the requirements of local content but the spirit as well and the CRDB facility accomplishes this. We have persisted with negotiating this funding facility for more than a year.

The relationship benefits Tanzania in growing its services sector and benefits our company, as the cost of funding reduces significantly in terms of sovereign risk premiums.

The provision of this significant debt package for Lindi unlocks the final milestone in project development and construction efforts at the mine site can commence as soon as formal documents have been executed. The project has assessed any potential COVID delays and we have introduced suitable travel and safety systems to mitigate risk.

Walkabout Resources share price snapshot

The Walkabout Resources share price has been flourishing on the ASX, with today’s news giving it another boost. It’s currently up by 85.7% year to date and has increased 100% over the last 12 months.

Walkabout Resources has a market capitalisation of around $62 million, with approximately 349 million shares outstanding.

More reading

• Is it time to get your hopes up for the A2 Milk (ASX: A2M) share price?
• Why is the Aldoro (ASX:ARN) share price rising today?
• Is the Bank of Queensland (ASX:BOQ) share price in the buy zone ahead of its results?
• Why the Commonwealth Bank (ASX:CBA) share price could soar 15%
• Why the Smartpay (ASX:SMP) share price is up 30% in 2021

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

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