• Why Immutep, Inghams, REA Group, & Synlait shares are sinking

    Fall in ASX share price represented by white arrow pointing down

    In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is tumbling lower. At the time of writing, the benchmark index is down 0.2% to 6,812.2 points.

    Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

    Immutep Ltd (ASX: IMM)

    The Immutep share price has sunk 12% to 40.5 cents. This decline appears to have been driven by profit taking from investors after a very strong gain last week. Investors were scrambling to buy the biotech company’s shares following positive trial data from a competitor using a similar therapy.

    Inghams Group Ltd (ASX: ING)

    The Inghams share price has dropped 4.5% to $3.44. Investors have been selling the poultry company’s shares following the sudden exit of its CEO, Jim Leighton, this morning. According to the announcement, Mr Leighton is leaving the CEO role to return to the United States due to personal reasons. He will be placed by non-executive director, Andrew Reeves. Mr Reeves was previously the CEO of George Weston Foods.

    REA Group Limited (ASX: REA)

    The REA Group share price has fallen 2% to $137.18. This follows a lukewarm response by the market to the company’s plan to acquire Mortgage Choice Limited (ASX: MOC) for $244 million or $1.94 cash per share. The latter represents a 66% premium to the mortgage broker’s last close price. REA Group’s CEO, Owen Wilson, believes the acquisition of Mortgage Choice represents an exciting opportunity to create a leading broking business. The Mortgage Choice board has voted unanimously in favour of the takeover.

    Synlait Milk Ltd (ASX: SM1)

    The Synlait share price is down 5% to $3.11 following the release of its half year results. Due to weak demand in the infant formula market, the dairy processor reported a disappointing 76% decline in net profit to NZ$6.4 million. Unfortunately, the second half isn’t expected to be any better. In light of this, management is forecasting a breakeven result in FY 2021.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

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

    The post Why Immutep, Inghams, REA Group, & Synlait shares are sinking appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/3cuh2Tf

  • Will the ASX 200’s ‘China problem’ get worse?

    Two flags - one from China, the other Australian - sit together on a desk

    The S&P/ASX 200 Index (ASX: XJO) has started the week slightly down, dropping 0.24% at the time of writing. Earlier this morning, we discussed how Treasury Wine Estates Ltd (ASX: TWE) share price was also taking a tumble this morning. Although Treasury shares have somewhat recovered at the time of writing, they were down as much as 4% in early trade today. The catalyst? China’s Ministry of Commerce confirming there would be a 175.6% tariff on the importation of Australian wine for the next five years. Now officially, this tariff is meant to be an ‘anti-dumping’ measure.

    But it’s regarded as something of an open secret that it is actually a byproduct of the current freeze in Sino-Australian relations. Last year saw Australian exports of barley and other agricultural goods curtailed for similar reasons.

    But is this only the start of the ASX’s ‘China problem’?

    The ASX’s ‘China problem’

    There are many, many ASX companies that would likely suffer if relations between Australia and China get any worse. Companies like A2 Milk Company Ltd (ASX: A2M) and Bubs Australia Ltd (ASX: BUB) have suffered from their daigu markets collapsing. Daigou trade involves customers buying products in bulk in Australia, and shipping them to China to be resold. The coronavirus pandemic was largely to blame for A2 Milk and Bubs’ initial woes in this area. But it is very conceivable that the deteriorating diplomatic relationship would exacerbate the daigou problem.

    The Sino-Australian relationship has now become a pawn in the far larger game of the Sino-US relationship. Earlier this month, Chinese and US officials held a fiery bilateral dialogue. It was the first contact between US and Chinese officials under the new Biden Administration. The US reportedly made re-engagement with Australia a primary condition of any improvement in their own relationship with China. In other words, global geopolitics is now a part of our economic relationship with China.

    Suppose this hinders, rather than helps, Sino-Australian relations.

    Things could get worse before they get better

    Well, the ASX’s China problem could get a lot worse. As most investors would know, the primary trade routes between Australia and China run on iron ore, coal, and other commodity resources.

    If China really decides that it needs to send a message to the US or to us, this might be the next sector to feel the diplomatic heat. In this case, our biggest miners like BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG) could have a lot of trouble ahead. Imagine a 175.6% tariff on Australian iron ore… That would get every ASX investors’ attention, I’d wager.

    Even if international relations isn’t your area of expertise, it’s shaping up as a key flashpoint for ASX investors, whether we like it or not. So watch this space.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    Sebastian Bowen owns shares of A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO. The Motley Fool Australia owns shares of and has recommended A2 Milk and Treasury Wine Estates Limited. The Motley Fool Australia has recommended BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    The post Will the ASX 200’s ‘China problem’ get worse? appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/3dd0E8Y

  • Anteris (ASX:AVR) share price drops 7% despite positive announcement

    falling healthcare asx share price Mesoblast capital raising

    The Anteris Technologies Ltd (ASX: AVR) share price is plunging today despite the company declaring “outstanding” results from one of its medical products.

    At the time of writing, shares in the medical technology company are trading at $11.9, down 7.67%. By comparison S&P/ASX All Ordinaries Index (ASX: XAO) is down 0.14%.

    Anteris, formerly known as Admedus Ltd, focuses on designing and manufacturing heart valves. Its next-generation technology re-engineers xenograft tissue into pure collagen scaffold, helping surgeons replace valves for patients during surgery.

    What did Anteris announce today?

    The Anteris share price is not responding well to today’s positive news. In a statement to the ASX, Anteris reported its ADAPT treated tissue has “superior anti-calcification attributes compared with tissues used in competitor valves”.

    ADAPT is an anti-calcification treatment for human heart valves. Up to 20,000 people worldwide live with ADAPT technology inside their bodies.

    According to Anteris, a review conducted by an independent biostatistician showed ADAPT-treated valve tissue had 38% calcium concentration compared to US company Medtronic‘s pig aortic valve. It also had 26% less calcium concentrate than Medtronic’s cow aortic valve tissue. Porcine valve is used most commonly, but bovine valve is also used in valve replacement surgery.

    According to the Mayo Clinic, aortic valve calcification is an early indicator of heart disease.

    Words from the CEO

    Commenting on the findings, Anteris CEO Wayne Paterson said:

    These findings clearly demonstrated the superior performance of the ADAPT tissue engineered process as an anti-calcification technology against some of the top competitors in the marketplace.

    It further supports previous human studies and clinical experience demonstrating ADAPT has a clinically relevant profile in terms of resisting calcification.

    Anteris share price snapshot

    The Anteris share price has shot up 168.53% over the last 12 months and surged an incredible 210.05% this year alone. 

    On 9 March, the company was hit with a price query from the ASX to explain why its share price increased 79.97% over the space of just 10 days with no significant market announcements made during that time.

    Anteris has a market capitalisation of $84.7 million.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    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.

    The post Anteris (ASX:AVR) share price drops 7% despite positive announcement appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/3w7QKhC

  • Why is the PYC Therapeutics share price up 170% in a year?

    The PYC Therapeutics Ltd (ASX: PYC) share price has risen 170% in a year and 13% this month, following promising results in the development of a new lead drug, and the appointment of U.S. Biopharma Executive Jason Haddock to its board.

    PYC announced Haddock will join its board of directors as the company seeks to access the US biopharmaceuticals industry. Haddock currently serves as a Board Director of Codiak BioSciences (NASDAQ: CDAK), a biotech company developing precision exosome therapeutics.

    Haddock’s appointment at ‘critical time’ for PYC 

    Sahm Nasseri, U.S. Chief Executive Officer of PYC Therapeutics, said that Haddock’s appointment would assist PYC in a range of fundamental areas.

    As we look to set up PYC to access the important U.S. biotech capital markets, Jason brings a wealth of valuable industry experience, having served as a financial, operations and strategic leader at a range of biotech companies.

    We welcome him as our second independent U.S. member of PYC’s Board of Directors and part of the growing U.S.-based leadership team as we continue to transform into a clinical stage biotechnology company. Jason’s unique expertise will play an important role in shaping our strategic path forward as we continue to enable corporate development in the U.S. and move our pipeline closer to clinical development.

    Haddock said he was excited to join PYC at a critical time in the company’s expansion into the US market.

    It is an honor to join PYC at such a critical time for the company and partner with the growing PYC executive team as it develops and executes on roadmaps that advance its pipeline of multiple candidates towards the clinic and engages key stakeholders in the U.S.

    I look forward to contributing my insights gained from a career dedicated to the development of therapies that can change the lives of patients, as PYC works to address unmet needs for ocular and other inherited diseases.

    PYC Therapeutics share price rises after drug development

    PYC is focused on developing treatments for inherited diseases, most of which are very rare. Its share price has risen 13% this month after it announced its lead investigational drug, VP-001, for the treatment of retinitis pigmentosa, has restored function of the Retinal Pigment Epithelium.

    Rp-11, as the disease is referred, kills off healthy cells in the retina in the human eye. VP-001, the drug that PYC manufactures, restores the target cells for the therapy, in patient-derived models of the disease.

    The past year has seen a notable growth trajectory for the Australian drug researchers. PYC Therapeutics’ share price has risen by more than $1 per share since April 2020.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

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

    The post Why is the PYC Therapeutics share price up 170% in a year? appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/3rAgEXM

  • Why the SciDev (ASX:SDV) share price is flying 11% today

    asx share price exploding represented by excited looking scientist

    SciDev Ltd (ASX: SDV) shares are flying higher after the company released an important announcement earlier today. At the time of writing, the SciDev share price is trading 10.64% higher at 78 cents after hitting an intraday high of 80 cents in earlier trade.

     Here’s why investors are jumping to buy shares in SciDev today.

    SciDev share price boosted on acquisition news

    The SciDev share price is responding favourably after the company announced it is set to acquire the business of Haldon Industries Pty Ltd.

    According to the announcement, the acquisition will have a maximum consideration of $16.9 million. SciDev will issue shares to Haldon principals at 80 cents per share. In addition, a cash payment of $1.7 million will be processed on completion.

    Haldon is an Australian-based environmental engineering company focused on the water and organic pollutant sector. The company has a strong presence in the Polyfluoroalkyl (PFAS) market in Australia through its mobile treatment plants.

    SciDev noted that the acquisition of Haldon will provide the company with greater presence and scale in water infrastructure and wastewater verticals. SciDev’s management highlighted that the acquisition will accelerate the company’s plans to enter the global market.

    What is the outlook for SciDev?

    SciDev is a leader in the development and application of solids to liquid separation. The company combines technology and chemistry to solve operational and environmental issues in the water, oil, gas and construction markets.

    In further news driving the SciDev share price today, the company also released an investor presentation to supplement its acquisition announcement. The company noted that the acquisition will deliver various strategic opportunities.

    Firstly, SciDev will have access to the growing PFAS market in Australia with the ability to deliver a full treatment solution. In addition, the company expects to leverage its engineering and technology to drive further business development opportunities.

    SciDev also highlighted that the acquisition will help it to diversify revenue streams whilst also providing it with a larger talent pool. The company also looks to expand its supply chain and end commodity exposure with the ability to provide direct chemical sales to Haldon customers.

    SciDev made headlines earlier this month after it announced a partnership with Fortescue Metals Group Limited (ASX: FMG).

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    • SciDev (ASX:SDV) share price on watch after winning tender process with Fortescue (ASX:FMG)

    Motley Fool contributor Nikhil Gangaram 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 Why the SciDev (ASX:SDV) share price is flying 11% today appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/3cAmC6Z

  • Leading brokers name 3 ASX shares to buy today

    3 asx shares to buy depicted by man holding up hand with 3 fingers up

    With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

    Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

    BHP Group Ltd (ASX: BHP)

    According to a note out of Macquarie, its analysts have retained their outperform rating and lifted their price target on this mining giant’s shares to $57.00. Due to strong demand and pricing, Macquarie has lifted its forecasts for a number of key commodities that BHP produces. It feels this leaves the company well-placed to reward shareholders with generous dividends in FY 2021 and FY 2022. The BHP share price is trading at $45.61 this afternoon.

    Westpac Banking Corp (ASX: WBC)

    Analysts at Morgan Stanley have retained their overweight rating and lifted their price target on this banking giant’s shares to $27.20. According to the note, Westpac is Morgan Stanley’s favourite among the big four banks. It believes Australia’s oldest bank is well-positioned to buy back shares in FY 2022 due to its strong capital position. In addition to this, the broker believes Westpac can reduce its costs meaningfully, underpinning higher quality earnings and supporting its dividend payments. The Westpac share price is fetching $24.34 on Monday afternoon.

    Xero Limited (ASX: XRO)

    Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted their price target on this cloud-based business and accounting platform provider’s shares to $140.00. According to the note, the broker believes the recent weakness in the Xero share price has created a buying opportunity for investors. It feels the risk/reward on offer is attractive and remains bullish on its long term growth prospects. Particularly given its recent acquisitions of Planday and Tickstar. The Xero share price is trading at $122.31 today.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. 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 Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/3fnh41h

  • NRW (ASX:NWH) share price sinks despite new contract win

    falling asx share price represented by sad looking builder

    The NRW Holdings Limited (ASX: NWH) share price is on the slide today despite the company announcing a new contract award and an extended agreement. In early-afternoon trade, the diversified service provider’s shares are swapping hands for $2.05, down 0.49%.

    Contract award

    The NRW share price is failing to hold onto earlier gains after the company released two positive updates this morning.

    In the first of its releases, NRW advised that its wholly-owned subsidiary, Golding Contractors, has been awarded a civil works contract. The award was provided by ASX-listed real estate and investment group Lendlease Group (ASX: LLC).

    Under the agreement, Golding Contractors will complete general subdivision and related infrastructure works at the Yarrabilba residential estate in Logan, Queensland.

    NRW highlighted that the contract win extends its relationship with Lendlease, which began in October 2017.

    The civil works project is expected to generate around $50 million in revenue for NRW. Works are scheduled to commence next month and be completed within the next three years.

    Extended contract

    In a second announcement today, NRW revealed that Golding Contractors has received a 12-month contract extension from Wonbindi Coal. The renewed deal will see Golding Contractors continue its works at the Baralaba North Mine.

    The new award will add roughly $120 million in extra revenue for Golding Contractors, up until June 2022.

    About the NRW share price

    NRW Holdings is an Australian company that provides diversified services to the resources, civil infrastructure, and urban development sectors.

    The company has a workforce of more than 7,000 people with 100 active projects. Extensive operations are located in Western Australia, Queensland, South Australia, New South Wales and Victoria.

    The NRW share price has climbed more than 70% over the past 12 months, but is down by around 30% year to date. The company’s shares reached a high of $3.19 earlier this year, before trending lower.

    Based on valuation grounds, NRW has a market capitalisation of around $949.2 million, with approximately 456.3 million shares outstanding.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    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 NRW (ASX:NWH) share price sinks despite new contract win appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/3rxFp6O

  • Why the Nine (ASX:NEC) share price is falling today

    cybersecurity shares represented by octopus reaching out of computer screen towards woman

    The Nine Entertainment Co. Holdings Ltd (ASX: NEC) share price is trading lower today after the broadcaster was hacked over the weekend. Channel Nine confirmed the cyber-attack interrupted live broadcasts on Sunday morning, with afternoon news programs also affected.

    At the time of writing, the Nine share price has slumped 2.4% to $2.85.

    Let’s look further into the hack.

    Back to basics

    The cyber-attack was confirmed by Channel Nine yesterday, after its Sunday morning news program, Weekend Today, was unable to go to air.

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

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

    Nine News described the attack as sophisticated and calculated. It stated that television and digital production systems, as well as 9news.com.au were all affected.

    Nine News also reported that it is working with the Australian Cyber Security Centre after it offered the broadcaster assistance.

    According to a report by the Nine-owned Australian Financial Review, the attack was carried out by ransomware. But with no demands having been placed, the reason for the attack is unclear.

    The cyber-attack on the broadcaster’s technical system sent news programs back to the dark ages. Presenters shared images to Twitter of them replacing teleprompters with whiteboards.

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

    According to a report from ABC News, Nine wasn’t the only institution to suffer suspicious technical issues over the weekend. The Australian Federal Parliament also allegedly suffered from a major IT disruption, leaving many parliamentarians without access to email.

    Nine share price snapshot

    Nine Entertainment shares have been having a party on the ASX lately, with lots of good news boosting the company’s share price. On 2 March, the Nine share price reached its highest closing price of all time, finishing the day at $3.07.

    Ten days later, the company entered into a regional television affiliation agreement with the WIN Corporation. Most recently, Nine shared the news it had signed a letter of intent with social media giant Facebook.

    While the Nine share price is lower today following the weekend’s cyber-attack, it is still up by around 24% year to date. It is also up a whopping 175% over the last 12 months.

    The broadcasting giant has a market capitalisation of $4.98 billion, with approximately 1.7 billion shares outstanding.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, 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 Facebook and Twitter. The Motley Fool Australia has recommended Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    The post Why the Nine (ASX:NEC) share price is falling today appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/3fmd7Kd

  • What’s happening with ASX lithium shares as battery-grade lithium prices push higher?

    Cut outs of cogs and machinery with chemical symbol for lithium

    ASX lithium shares, including Galaxy Resources Limited (ASX: GXY), Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE), have continued to grind sideways despite higher lithium prices. 

    Latest lithium price update 

    Fastmarkets provides updates for battery-grade lithium prices across China, Europe and the US. The latest update highlights: 

    • Asian seaborne lithium prices were steady against a backdrop of tight availability and firm demand; meanwhile Chinese suppliers have made aggressive offers for battery-grade lithium carbonate.
    • Spot trades in domestic Chinese market remained slow with consumers conducting “hand-to-mouth” purchases, but supply continued to be tight.
    • Europe, US battery-grade lithium spot prices continued to trend higher with deals reported at higher levels.

    It notes that domestic lithium carbonate prices in China have increased to 87,500 yuan/tonne (~A$17,500) up from 70,750 yuan/tonne (~A$14,160) last month. 

    Why have ASX lithium shares gone nowhere in 2021? 

    ASX lithium shares have largely retreated back to where they were at the start of 2021.

    It is worth noting that shares in the resource have more than doubled in the last 6 to 12 months. It’s possible that such price movements may have already been priced into the near-term bullish moves in spot prices.  

    Despite their share prices going nowhere lately, ASX lithium shares have demonstrated significantly improved financial results and ramping up production to take advantage of improved prices. 

    Pilbara Minerals, for example, reported a December half-year earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.7 million compared to the EBITDA loss of $24.1 million in the prior corresponding period. 

    Similarly, Galaxy Resources is ramping up product at its flagship Mt Cattlin mine. Its production was previously lowered to ~60% of nameplate capacity to adapt to soft market conditions for most of FY20.

    The mine is now positioned to ramp up production in response to strong customer demand, improving prices and reduced inventory levels. The company’s loss after tax for the December half also improved to US$31.3 million compared to the US$283.7 million in the pcp. 

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    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.

    The post What’s happening with ASX lithium shares as battery-grade lithium prices push higher? appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/39lsAWY

  • Why the St Barbara (ASX:SBM) share price is climbing

    mining asx shares represented by miner writing report on clipboard

    The St Barbara Ltd (ASX: SBM) share price has jumped 1% this morning as ASX resources shares rebound strongly and the gold miner withdrew from a joint venture (JV).

    Why is the St Barbara share price on the move?

    Advanced gold and copper explorer, Alice Queen Ltd (ASX: AQC), advised this morning that St Barbara was withdrawing from the Horn Island JV. St Barbara entered into the JV in 2019 to explore areas outside of Alice Queen’s existing Horn Island Inferred Resource.

    Alice Queen said it was “disappointed” by the withdrawal and election to not pursue further exploration expenditure under the JV. The smaller JV partner will continue pursuing exploration including a scoping study to bring Horn Island to production as soon as possible.

    Under the terms of the JV, Alice Queen will retain all of the information generated by St Barbara’s ~$2.6 million expenditure so far.

    The St Barbara share price has climbed in early trade following the update alongside many ASX resources shares. 

    How has St Barbara been performing?

    Prior to this morning, the St Barbara share price had slumped 17.8% lower in 2021 to Friday’s close. That comes amid a broader softening in gold prices as investors have pulled back on bearish views.

    Record government stimulus and a rising US dollar have buoyed investor spirits and turned many away from the safe haven asset of gold.

    That has put ASX gold shares like St Barbara under pressure to start the year. The Northern Star Resources Ltd (ASX: NST) share price has slumped 23.3% while Newcrest Mining Ltd (ASX: NCM) shares are down 7.7% in 2021.

    What’s happening on the ASX this morning?

    The S&P/ASX 200 Index (ASX: XJO) has climbed 0.4% at the open following strong stimulus signed off by the Biden administration.

    Early gainers include BHP Group Ltd (ASX: BHP) and Lynas Rare Earths Ltd (ASX: LYC), which are up 2% at the time of writing. The A2 Milk Company Ltd (ASX: A2M) is among this morning’s fallers, down 0.6% at the open.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    Motley Fool contributor Ken Hall 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.

    The post Why the St Barbara (ASX:SBM) share price is climbing appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/3diyWHM