The CV Check Ltd (ASX: CV1) share price has been a disappointing performer on Monday.

In afternoon trade, the screening and verification services provider’s shares are down 7% to 13 cents.

This is actually a big improvement from earlier in the day. During morning trade the CV Check share price was down as much as 18% to 11.5 cents.

Why is the CV Check share price crashing lower?

Investors have been selling CV Check shares on Monday after the release of a surprise announcement this morning relating to its leadership.

According to the release, the company’s CEO and Executive Director, Rod Sherwood, has announced his resignation for personal reasons and has immediately stood down from regular duties.

However, Mr Sherwood will remain available to assist CV Check through the transition period, if necessary.

In the meantime, the company’s Independent Chair, Mr Ivan Gustavino, will be acting as Executive Chair whilst the company undertakes a widespread search for a CEO to take it on the next stage of its journey.

What now?

Mr Sherwood believes that the company is in ideal shape and primed for growth, making now an opportune time to step away.

He said: “I am immensely proud to have led The Company over the past four and a half years. Having just completed the Bright transaction, the Company is now in ideal shape, with record revenues, primed for growth with exciting new opportunities available and $14.8m in cash as at the end of March.”

“The next few months will offer the CV1 group a time for an inward focus as the CVCheck and Bright businesses get to know each other and successfully integrate and align. This is a time for change and renewal, which affords the ideal opportunity for me to step away from the business and allow CV1 group time to search for a new CEO who will lead it into the promising future I know lies ahead. I will, of course, be available to assist the Company through the transition, if required.”

Mr Gustavino spoke positively about the outgoing CEO’s tenure and the company’s outlook.

He said: “Rod has served The Company for almost 10 years, putting a great deal of energy and effort into steering the Company to an ideal position for future growth. He departs with the great thanks and best wishes of all in the Company. The board is confident it has the management structure and organisational resilience to continue our record of organic growth whilst the Board recruits a new CEO.”

More reading

• Why the CV Check (ASX:CV1) share price will be on watch this morning

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CV Check 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 Province Resources Ltd (ASX: PRL) share price is storming higher today as the company announced a new, global green hydrogen project.

Shares in the small-cap natural resources company have been surging higher in recent times, reaching an all-time high of 20 cents this morning.

Currently, the Province Resources share price is sitting at 18 cents, up 24.14% on Friday’s close.

Green hydrogen

Dubbed the ‘fuel of the future’, green hydrogen has been part of a global thematic that has “seen billions of dollars of invested capital” flow into the industry. According to an ABC report, the estimated potential demand for imported hydrogen in China, Japan, South Korea and Singapore alone could reach $9.5 billion by 2030.

Nonetheless, as the article explains, hydrogen still has caveats. Hydrogen is so small that it can escape through solid steel, meaning new piping systems would have to be developed. Moreover, it is one of the most flammable gases on the planet.

Total Eren partnership

Returning from its trading halt today, Province Resources announced that it had signed an agreement with France-based company Total Eren. Signed on 16 April, the binding memorandum of understanding (MoU) is to perform a feasibility study in the view of potentially developing a major green hydrogen project.

The project, earmarked for the Gascoyne region of Western Australia, will be equally owned by the two companies. However, it is conditional on the feasibility study which will be completed in approximately 4 months.

The project will be developed in two stages totalling up to 8 Giga Watts in installed renewable energy capacity. 

From the management

Commenting on the news, Province Resources managing director David Frances said:

Given the recent drive by state and federal governments to quickly develop and advance the green hydrogen industry in Australia, I am confident this project will be of strategic national importance.

Province is excited to have a global renewable energy leader such as Total Eren as a partner with the technical and financial capability to help Province deliver this project as part of the backbone of the nation’s hydrogen strategy.

So what

Total Eren is an independent power producer from renewable energy sources with more than 3.3 Giga Watts of renewable energy plants worldwide. In Australia, the company owns Victoria’s largest solar farm.

Regarding the news, the Province Resources share price has flown higher, gaining an impressive 24.14% at the time of writing.

More reading

• Why the Province Resources (ASX:PRL) share price is up 12%
• Province Resources (ASX:PRL) share price slides despite hitting next project milestone

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

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Seven Group Holdings Ltd (ASX: SVW) shares entered into a trading halt today after the company announced a $500 million capital raising. At Friday’s close, the Seven share price was changing hands at $23.43.

The company has advised its shares are expected to remain in a trading halt until Wednesday 21 April or until an announcement regarding the capital raise.  

Why the Seven Group share price will be one to watch 

The Seven share price will be in focus when it resumes trading. This comes following the group’s announcement it is pursuing a $500 million capital raising via an institutional placement and share purchase plan. The reasons provided by Seven for the capital raising are to allow for greater balance sheet flexibility and reduce the company’s net debt position to support portfolio growth opportunities across key verticals.  

Seven will be using proceeds of the cap raise to reduce overall debt from $2.6 billion to $2.1 billion, facilitating the retirement of more costly facilities that bear interest rates of 5.60%. 

The new shares will be issued at $22.50 per share, a 4.0% discount to its closing price of $23.43 on 16 April. 

It will be interesting to see whether or not the small discount will affect the Seven Group share price when it resumes trading on Wednesday. 

Seven Group overview

Investors often immediately think of Chanel Seven or Seven West Media Ltd (ASX: SWM) when thinking about Seven Group shares. Seven Group owns 40% of Seven West Media, alongside a number of businesses in the industrial and energy sectors. 

The company owns 100% of WestTrac, a leading Caterpillar dealer which supports Australia’s rich iron ore and thermal coal regions. WestTrac’s key customers include ASX iron ore majors BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO). WestTrac delivered an 8% increase in 1H21 revenues to $1,847 million, contributing a significant 78% of the group’s total revenues. 

Seven Group also owns 100% of Coats Hire, the largest nationwide industrial and general equipment hire company. Social distancing and prolonged lockdowns in Victoria impacted construction activity across the east coast, largely driving a 6% decline in 1H21 revenues to $469 million. 

Seven maintains a 23% shareholding of Boral Limited (ASX: BLD), an international building products and construction materials company. Boral recently received an overweight rating from Morgan Stanley after the company completed the sale of its joint venture business for US$1.05 billion. Seven believes there is a strong five-year infrastructure investment growth outlook, with Boral poised to capture demand. 

What also makes Seven an interesting conglomerate is its 28.5% ownership of Beach Energy Ltd (ASX: BPT). Lower oil prices saw Beach Energy’s revenue fall 22% in the first half. Seven has highlighted that OPEC+ supply uncertainty will continue to subdue oil prices as demand recovery ramps up. 

The Seven Group share price has had a flat year-to-date performance but has more than doubled since its March 2020 lows. Its shares are currently not too far off their February all-time record highs of $24.25. 

More reading

• Seven (ASX:SWM) share price is up today despite ‘secret loan’ revelations
• 3 ASX shares this top fund managers thinks are buys
• ASX 200 shares going ex-dividend this 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 Magnis Energy Technology Ltd (ASX: MNS) share price is bouncing today after news the company’s subsidiary has fully funded its lithium-ion plant. 

Magnis announced that its subsidiary Imperium3 New York (iM3NY) has wrangled together US$85 million to fast-track the development of its lithium-ion battery plant.

Magnis also announced it has increased its investment in iM3NY. At a cost of US$23.6 million, it has increased its stake in the company from around 50% to approximately 63%.

The Magnis Energy share price reached an intraday high of 49 cents on the news, representing a gain of 13%, but it has since dropped back to 41 cents, down 3.53% on the previous session’s closing price.

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

Lithium-ion plant now fully funded for gigawatt production

The funding announced today means iM3NY can begin fast-tracking the production of its New York-based lithium-ion plant to gigawatt scale.

iM3NY expects the plant to be completed and capable of generating over 1 gigawatt-hour of high-grade lithium-ion battery cells each year by early 2022.

The plant will produce lithuim-ion batteries using iM3NY’s exclusive North American technology license agreement with Charge CCCV LLC (C4V), which means the plant will be the only one in North America able to produce the same battery.

Its first-generation batteries will use C4V’s patented bio mineralisation technology, combined with its proprietary bi-mineralised lithium mixed metal phosphate process.

According to the company, this will enable iM3NY to produce higher capacity, safer, longer cycling and lower cost batteries compared to all others on the market.

Currently, iM3NY is part of the US Department of Defence’s supply chain and supports the electrification of several large US companies.

The company believes the technology will allow it to grow quickly into international markets.

Magnis Energy’s chair Frank Poullas stated in today’s release that, due to its “aggressive future expansion plans” iM3NY is investigating its potential to list on a US stock market.

Funding sources

The US$85 million of funding has come from a number of sources.

$MNS‘ #iM3NY project is fully funded for Gigawatt scale production, securing US$85M 🔋🗽@im3_ny is in the right place at the right time to capture the enormous growth about to hit the globe for #lithium-ion #batteries. #Ausbiz $MNS.ax#ASX-announcement: https://t.co/8nJRVL2UWt pic.twitter.com/D9fNnTdchT

— Magnis Energy Technologies (@magnisenergytec) April 18, 2021

https://platform.twitter.com/widgets.js

The largest is Riverstone Credit Partners, which provided a US$50 million senior-secured term loan.

The other US$35 million came from equity funding, US$23.6 million of which was through Magnis Energy’s investment in the company.

Along with the funding announced today, iM3NY has US$230 million of manufacturing assets in place.

Further, Empire State Development has offered iM3NY performance-based incentives totalling US$7.5 million. These include a US$4 million Upstate Revitalization Initiative grant and US$3.5 million Excelsior Jobs Program tax credits.

Commentary from management

Pullas said today’s news comes after 2 years working to finalise the funding:

With offtake agreements signed and a focus on producing greener lithium-ion batteries, we are in a great position to take advantage of the huge growth being experienced in this sector.

iM3NY’s chair Dr Shailesh Upreti also commented on today’s news:

We now have the funds to turn our project in Endicott, NY into something special. We believe we are in the right place at the right time to capture the enormous growth about to hit the globe for lithium-ion batteries and being in the world’s largest economy with one of the country’s largest near-term battery plants bodes well for future growth plans.  

Magnis Energy share price snapshot

The Magnis Energy share price is have a roaring year so far on the ASX.

Currently, Magnis Energy shares are up 121% year to date and a massive 770% over the last 12 months.

Magnis Energy has a market capitalisation of around $356 million, with approximately 838 million shares outstanding.

More reading

• The Betmakers (ASX:BET) share price is sliding today
• Top broker picks ASX shares next in line for a profit upgrade
• Apple’s iPhone 12 shows its 5G dominance
• Galaxy Resources (ASX:GXY) share price jumps on merger news
• Here’s why the Centuria (ASX:CNI) share price is up today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

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

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The Betmakers Technology Group Ltd (ASX: BET) share price is falling today after a volatile past week. 

With no fresh news from the company this morning, the Betmakers share price has fallen 3.8% to $1.25 per share at the time of writing.

Let’s take a closer look.

A quick take on Betmakers

Betmakers develops and provides data and analytic products. The company operates in two segments: content and integrity, and wholesale wagering products.

The content and integrity segment assists racing bodies and rights holders in producing and distributing race content, including services such as barrier technology, official price calculation, vision, and pricing distribution.

Its wholesale wagering products segment, which derives the majority of its revenue, provides a variety of racing data and analytical tools consisting of basic race data. This includes the usual suspects: pricing, runners, and form, as well as analytical tools to consume and leverage the data, and wagering tools such as platforms and the Global Tote.

Geographically, it derives a majority of revenue from Australia.

The losses behind the Betmakers share price gains

The Betmakers share price has risen 537% over the past 12 months, spurred on by significant increases to Australia’s already booming gambling market during the COVID-19 pandemic. 

Betmakers has been well-positioned to benefit from Australia’s gambling habits shifting online during COVID-19 lockdowns as a gambling operator specialises in data analytics and a highly technological approach.

According to research from the Australian National University, Australia has one of the highest rates of gambling losses in the world. The COVID-19 pandemic, while not leading to national increases in the overall number of people gambling, did lead to huge increases in gambling expenditure by key demographics.

Victoria’s gambling losses rose by 35% during the state’s enforced lockdown. Australia-wide, male gamblers spent almost 25% more per month after the COVID-19 lockdowns than before them.

In its second-quarter FY21 activities update released in February, Betmakers reported cash receipts for the first half of FY21 of $7.9 million, up 130%.

While Australia’s gambling losses have been rising consistently over the past few years – Australians lose more than $24 billion a year or about $923 per person – the Betmakers share price was flat for most of the previous five years. Its gains are based largely on 2021 alone.

In September 2019, it was trading at just 9 cents per share, and it had a strong 7-month period to rise to more than 50 cents by August 2020. But since January this year, the Betmakers share price has already more than doubled to its current value.

Betmakers current performance

Despite today’s falls, the Betmakers share price is up 22% in the past month and almost 80% in 2021 so far. It’s also beaten its consumer cyclical sector by more than 480%.

More reading

• What happened with the Betmakers (ASX:BET) share price this week?
• Why AVZ, Betmakers, Santos, & South32 shares are storming higher
• Why the BetMakers (ASX:BET) share price is worth watching

Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology 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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The ASX earnings upgrade cycle is the best we’ve had in decades and we may yet see a new raft of ASX shares lifting their profit predictions for the year ahead.

Already we have seen a wide range of companies upgrading their profit expectations as they emerge from COVID-19.

This has been happening for several months. The analysts at Macquarie Group Ltd (ASX: MQG) believes the trend is the best in recent memory.

More ASX earnings upgrades to come

“Net-earnings revisions have been positive for the last 7 months plus the first half of April,” said the broker.

“This is a longer string of positive revisions than at any time during the commodity boom.

“Forward earnings are already up 23% from the low in August 2020, and we think earnings could rise another 15-20% over the next year.”

ASX shares that have upgraded earnings expectations

Some of the ASX large caps that have posted some of the best upward earnings revisions in recent times include the James Hardie Industries plc (ASX: JHX) share price and BlueScope Steel Limited (ASX: BSL) share price.

Their efforts have been well rewarded as their share prices are at record or multi-year highs!

Other ASX large cap shares that have also increased their earnings estimates include the Cochlear Limited (ASX: COH) share price and Brambles Limited (ASX: BXB) share price.

The next group of ASX shares to beat market expectations

The bigger question facing investors is which ASX share could be next in line to better consensus expectations.

The experts at Macquarie have identified several on its “buy” list that they think are cum-upgrade.

Among resources shares, the broker picked the Woodside Petroleum Limited (ASX: WPL) share price and South32 Ltd (ASX: S32).

Others include the Nine Entertainment Co Holdings Ltd (ASX: NEC) share price, Woolworths Group Ltd (ASX: WOW) share price and Reliance Worldwide Corporation Ltd (ASX: RWC) share price.

Beware the potential down-graders

On the flipside, the broker also identified ASX shares that could get hit with an earnings downgrade.

Three in particularly stand out as Macquarie has slapped them with an “underperform”, or “sell”, rating.

These are Zip Co Ltd (ASX: Z1P) share price, Tyro Payments Ltd (ASX: TYR) share price and InvoCare Limited (ASX: IVC) share price.

“We continue to favour reflation trades, with an overweight in resources and a preference for value,” added Macquarie.

“We still think US bond yields are too low, with US fiscal spend and the Fed eventually signalling the tapering of QE being potential catalysts for higher yields.”

More reading

• These are the 10 most shorted shares on the ASX
• Commonwealth Bank (ASX:CBA) CEO hits out at Afterpay and BNPL providers
• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• Why ASX mining shares are likely to jump this morning
• 5 things to watch on the ASX 200 on Monday

Brendon Lau owns shares of BlueScope Steel Limited, James Hardie Industries plc, Reliance Worldwide Corporation Ltd, South32 Ltd, and Woolworths Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tyro Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd., Reliance Worldwide Limited, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Cochlear Ltd., InvoCare Limited, and Reliance Worldwide 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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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.

Apple‘s (NASDAQ: AAPL) iPhone 12 quickly climbed the charts to become the best-selling 5G smartphone in October last year despite being on sale for just a few days of that month. Fresh data from market research firm Counterpoint Research indicates that Apple’s iPhone 12 lineup has remained in hot demand ever since.

Some updated reporting from Counterpoint reveals that Apple produced six of the top 10 best-selling smartphones for the month of January 2021. The iPhone 12, the iPhone 12 Pro Max, the iPhone 12 Pro, and the iPhone 11 were the top four best-selling smartphones that month. The iPhone 12 mini and the 2020 iPhone SE also made the list. What’s more, a closer look at the list tells us that Apple’s domination of the 5G smartphone space continues. Here’s why.

The iPhone 12 is leaving others behind in 5G

China’s Xiaomi and South Korean smartphone giant Samsung were the other two manufacturers whose devices made it to the top 10 list. Xiaomi’s Redmi 9A and Redmi 9 were the fifth and sixth best-selling smartphones in January, but what’s worth noting is that they are way cheaper than Apple’s offerings.

The Redmi 9A can be bought for just $120 in the U.S. Customers can buy the device for around 89 pounds in the U.K., and for less than 100 euros in Germany. The Redmi 9 is slightly more expensive with its price hovering around $150 in the U.S. The 5G variant of the Redmi Note 9, however, starts at $290 for the Chinese version. Samsung’s Galaxy A21S and Galaxy A31 are the two smartphones that completed January’s top 10 list, and they are priced at around $200 in the U.S.

The cheapest Apple device on the list is the 2020 iPhone SE, which starts at $399 in the U.S. The iPhone 12, which tops the list, starts at $799, while the second-ranked iPhone 12 Pro Max begins at $1,099. The iPhone 12 Pro is ranked third. This makes it clear that Apple is enjoying solid pricing power as customers are preferring the more expensive iPhone 12 models — all of which are 5G-enabled.

That’s not surprising as Apple has hit the sweet spot as far as pricing the iPhone 12 series is concerned. Samsung’s latest Galaxy S21, for instance, starts at almost $800, which is equal to the starting price of the regular iPhone 12. But Apple gives customers on a budget the option to buy a 5G-enabled smartphone for $699 in the form of the iPhone 12 mini.

Another factor that could be playing in Apple’s favor is the higher average selling price (ASP) of 5G smartphones.

IDC estimates that the ASP of a 5G smartphone stood at $600 last year, and a similar level can be expected in 2021. The increasing proportion of 5G as a percentage of overall smartphone shipments is pushing the industry’s ASPs higher. IDC forecasts that the ASP of a smartphone will now be $363 this year as compared to the earlier forecast of $349.

Customers’ preference for Apple’s iPhone 12 when it comes to paying a premium for 5G devices also reflects in the company’s improved market share. The company held 23.4% of the overall smartphone market at the end of the fourth quarter of 2020, a sharp increase over just 11.8% in the third quarter. This sharp spike clearly shows how the iPhone 12 launch has impacted Apple’s positioning in the 5G era.

The Apple juggernaut will keep rolling on

Hundreds of millions of iPhone users are reportedly in an upgrade window that has triggered a “supercycle.” Supply chain checks indicate that Apple is making substantially more devices than usual this year to cater to that installed base, and that’s translating into an impressive sales performance.

Given the pricing power Apple is enjoying in the 5G era, it is not surprising to see why the company is expected to set new sales records this year. Daniel Ives of Wedbush is forecasting 250 million units in iPhone sales this year, and the momentum could spill over to 2022.

Apple supplier Taiwan Semiconductor Manufacturing, or TSMC, is expected to start the volume production of the A15 chip that will likely go into this year’s iPhone by the end of May. For comparison, the A14 chip used in the iPhone 12 went into production in June last year. Additionally, the smartphone giant is expected to place initial orders for 100 million units of this year’s iPhone lineup, a 25% increase over last year.

Meanwhile, 5G smartphone shipments are expected to more than double in 2021 to 540 million units. Shipments are expected to exceed more than a billion units by 2025, according to IDC. With the way Apple’s sales are flourishing amid the advent of 5G smartphones, it could consistently clock strong shipment growth in the coming years and remain a top 5G stock for the long run.

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

More reading

• Tesla and Palantir were some of the most popular US shares last week
• 2 investing approaches to help get you started on the ASX
• Tesla and GameStop were some of the most popular US shares last week
• Here are the US shares ASX investors have been buying
• Facebook poised to shoot 32% higher, says analyst

Harsh Chauhan 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 Apple and Taiwan Semiconductor Manufacturing and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Galaxy Resources Limited (ASX: GXY) share price has increased following a quarterly report and merger proposal update from the Aussie lithium miner. 

Why is the Galaxy Resources share price moving?

At the time of writing, the Galaxy Resources share price is trading 1.66% higher at $3.67 after the company’s March 2021 quarterly activities report and a new mega-merger announcement.

In earlier trade, shares in the Aussie lithium miner jumped as high as $3.75 after news of the proposed merger of equals with Orocobre Limited (ASX: ORE) was released.

Orocobre and Galaxy announced a proposed $4 billion merger of equals to create the fifth-largest global lithium chemicals company. Under the proposal, Galaxy shareholders will receive 0.569 Orocobre shares for each Galaxy share held under the Scheme of Arrangement.

The Scheme is unanimously recommended by the Galaxy board and endorsed by the Orocobre board.

The release of Galaxy’s quarterly report follows last week’s brief update on its Sal de Vida project.

Galaxy reaffirmed that its 2021 feasibility study confirmed a “globally competitive brine operation with lowest quartile capital and operating costs”.

The study detailed the initial production of 10,7000 tonnes per annum (tpa) of battery-grade lithium carbonate (LC). Galaxy foresees expansion to 32,000 tpa in later stages.

At its Mt Cattlin project in Australia, mining activities ramped up to full rate during the quarter with the plant at nameplate capacity.

Galaxy achieved production guidance with 46,588 dry metric tonnes (dmt) of lithium production. Grading came in at 5.8% lithium oxide in line with customer requirements.

29,917 dmt of lithium concentrate was shipped during the quarter. That was in addition to the 15,700 dmt second shipment in early April that fell outside the quarter-end.

The Galaxy Resources share price has been on fire in the last six months. Shares in the lithium miner have rocketed around 190% higher in that period to a $1.8 billion market capitalisation.

That’s on the back of returning production levels, strong pricing and favourable supply conditions around the world.

Foolish takeaway

The Galaxy Resources share price is on the move today after the company’s latest quarterly update and merger announcement.

The group’s shares jumped 18.4% higher last week before starting strongly this morning. Orocobre shares have also jumped by around 3% so far today on the news of the merger.  

More reading

• Galaxy (ASX:GXY) and Orocobre (ASX:ORE) announce mega lithium merger
• Why this broker thinks the Vulcan (ASX: VUL) share price can double again
• Why Ampol, Netwealth, Orocobre, & Race Oncology shares are storming higher
• Top brokers name 3 ASX shares to sell today
• Strike Energy (ASX:STX) goes into trading halt for $80m cap raise

Motley Fool contributor Ken Hall 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 Centuria Capital Group (ASX: CNI) share price is lifting today after the company announced its plan to acquire Primewest Group Ltd (ASX: PWG).

The proposed merger of the two real estate platforms will result in an entity with more than $15 billion of assets under management (AUM).

At the time of writing, the Centuria share price is 1.8% higher to $2.82 per share. Meanwhile, the smaller Primewest Group share price has surged 5.8% to $1.55.

Details of the deal

Real estate group Centuria is seeing shareholder interest in today’s trading session after news of the takeover of Primewest. The update follows the group entering a bid implementation deed (BID) in relation to a merger transaction with Primewest via an off-market takeover offer.

The Primewest board has unanimously recommended the offer unless a superior proposal is received. Under the terms of the deal, Primewest security holders will receive $1.51 per security held. This will comprise 20 cents of cash per security, along with 0.473 Centuria securities per Primewest security, representing $1.31 based on the larger property group’s traded share price on 16 April.

If the merger goes ahead, the combined group will hold $15.5 billion AUM, representing an increase of 52% for Centuria.

Another potential future Centuria share price catalyst could be index inclusion. The amped-up size would have Centuria well placed for S&P/ASX 200 Index (ASX: XJO) inclusion, with an estimated pro forma market capitalisation of $2.2 billion.

Increased Centuria share price return?

It was only just under a month ago that Centuria tapped the market for $100 million in new funding. We now know where that cash will likely be going.

A combined Centuria and Primewest is expected to deliver an enhanced geographically diversified property portfolio. Primewest would add new exposure to daily needs retail, larger format retail, and agriculture sectors for Centuria.

Additionally, the board expects the merger to be financially attractive. If all goes to plan, the merge would add 4% to Centuria’s FY21 pro forma earnings per security.

Centuria chair Garry Charny provided commentary on the announced merger:

The proposed Centuria/Primewest merger is consistent with Centuria’s dual strategy of asset acquisitions and corporate M&A, where this is sympathetic to Centuria’s business model.

Primewest is a high quality, well-established fund manager and the Centuria board looks forward to the successful completion of the merger and building on Centuria’s position as a leading Australasian property fund manager.

What’s next?

Lastly, the proposed merger is contingent on gaining a minimum acceptance of at least 90% of all Primewest securities. BID statements will be dispatched mid-May, where security holders will have the chance to vote on the proposal. If all bidder conditions are met by mid-June, the merger process will commence. 

The Centuria share price has delivered a terrific 67% to shareholders. However, throwing in dividends payouts on top, trailing 12-month returns boost to 80.3%.

More reading

• Why did the Centuria (ASX:CNI) share price drop today?

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

The post Here’s why the Centuria (ASX:CNI) share price is up today appeared first on The Motley Fool Australia.

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The Moneyme Ltd (ASX: MME) share price is edging higher in mid-morning trade following a trading update for Q3 FY21.

At the time of writing, the digital credit company’s share price is fetching for $1.45, up a marginal 0.3%.

How did MoneyMe perform?

MoneyMe shares are relatively flat despite delivering a robust performance for the quarter.

For the period ending 31 March 2021, MoneyMe reported originations of $108 million, reflecting a 57% increase on Q2 FY21. Over the prior corresponding period (pcp), this metric grew 111% ($51 million in Q3 FY20).

Gross customer receivables also surged to $233 million, a lift of 63% on the prior comparable period. Growth from the company’s existing personal loan and freestyle products predominately drove the result.

MoneyMe noted that while the overall consumer credit market remained flat, its ‘Generation Now’ suite of offers attracted new cliental.

Following on to earnings, the company achieved a record of $15 million in revenue for Q3 FY21. In the prior quarter, revenue stood at $12 million, representing a 25% increase. MoneyMe revealed that it is expecting contracted revenue to come in at $19 million for Q4 FY21.

The average customer receivables term also jumped to 35 months, up from 32 months in the last quarter.

Funding costs reduced to 6% as compared to 9% in the first-half of FY21. The group noted the improvement came leveraging its bank warehouse facility. Furthermore, core operating cost margins pleasingly declined to 9% in Q3, down from 12% realised in H1 FY21.

Lastly, MoneyMe reaffirmed the quality of its credit book, attaining an average Equifax score to 644. This metric represents a credit scoring model, with any number between 580 to 669 considered as fair.

What did management say?

MoneyMe managing director and CEO, Clayton Howes hailed the strong result, saying:

We are incredibly pleased to report the growth and momentum the business is achieving, with increasing revenues and another set of records in originations and customer receivables.

Our business is accelerating with the credit quality of our customers increasing and it is fantastic to see the strong take-up of our recently launched products by our customers and merchants.

MoneyMe share price review

The MoneyMe share price has gained over 60% in the past 12 months, but is unchanged from year-to-date performance. The company’s shares have travelled little since September 2020, last reaching a 52-week high of $2.00 the month before.

On valuation grounds, MoneyMe presides a market capitalisation of around $244.3 million, with 171.4 million shares on issue.

More reading

• ASX stock of the day: Moneyme (ASX:MME) shares in the spotlight

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

The post MoneyMe (ASX:MME) share price edges higher on positive trading update appeared first on The Motley Fool Australia.

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