Energy Resources of Australia Limited (ASX: ERA) on Friday will end all uranium mining and processing at the mine completely surrounded by Kakadu National Park.

The move comes 40 years after mining within the Northern Territory’s famous region started amid controversy.

Uranium is used as fuel for nuclear power generation. The site of ERA’s Ranger mine had long been known to Indigenous peoples as a place that would cause radiation sickness.

The fierce public debate in the 1970s over extracting such a sensitive material from an environmentally and culturally significant area triggered many downstream impacts.

Among those was the very creation of the Kakadu National Park itself in 1979 in an attempt to protect the remaining area. Uranium mining started in 1980.

Since then ERA has produced more than 132,000 tonnes of uranium oxide from the Ranger mine.

Majority shareholder Rio Tinto Limited (ASX: RIO), which has endured its own controversy this year after the destruction of Juukan Gorge, withdrew its backing for mining at Ranger a few years ago.

Actual mining ceased 8 years ago, but ERA had still been processing already-extracted material up until this week.

The cessation of uranium activities this week was required by federal law via the Ranger Authority.

‘A truly historic milestone’

ERA chief Paul Arnold announced the end of uranium production was “a truly historic milestone”.

“Ranger has been a major supplier to global energy markets as well as being a key contributor to the Kakadu region and the Northern Territory,” he said.

“We would like to thank the many generations of ERA employees who devoted their skills and expertise throughout the life of this mine.”

Arnold said his company would remain in the area to rehabilitate the mine site.

“I look forward to the continued support and expertise of our team as we now wholly focus on delivering on our legacy of the comprehensive rehabilitation of the Ranger Project Area.”

ERA controversially raised $476 million of capital on the ASX last year to pay for the rehab.

This diluted minority shareholder’s stakes while Rio avoided paying for a non-productive cost.

ERA has 5 years to finish the rehabilitation work.

Australian Conservation Foundation nuclear-free campaigner Dave Sweeney said last month the remediation was no easy task.

“The community and environment of Kakadu need certainty and a comprehensive clean up,” he said.

“This work is a key test of the commitment and capacity of Rio Tinto, as well as the Northern Territory and federal governments.”

More reading

• The Energy Resources (ASX:ERA) share price is falling. Here’s why.
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rose 1.6%
• Here’s why the Rio Tinto (ASX:RIO) share price jumped 9% to a record high today
• BHP (ASX:BHP) share price storms to new high

Motley Fool contributor Tony Yoo 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 ASX company stops Kakadu uranium production appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2LfRXAG

Horticultural producer Costa Group Holdings Ltd (ASX: CGC) has had a good run over the last twelve months. During this period, the Costa share price has risen by 73.58%, despite the challenges presented by the COVID-19 pandemic.

Let’s take a closer look at what’s been driving the Costa share price.

Rundown of 2020 results

The company produced relatively solid results in 2020, despite the market downturn.

In the company’s last announcement on its financials for calendar-year 2020 (CY20), Costa reported that its earnings before interest, tax, depreciation and ammortisation (EBITDA) for the half-year was $93.7 million. This represented a 13.7% increase on CY19’s EBITDA.

Those earnings translated to a bottom line net profit after tax (NPAT) of $45.8 million, which was 12% higher than 2019.

Costa reported that the solid numbers were underpinned by strong retail mushroom demand in Australia, along with the full commissioning of its Monarto mushrooms facility in South Australia.

About Costa’s operations

The Australian fresh produce market is fragmented, and Costa is the largest player in this space.

The company has roughly 15% overall share of Australia’s fresh produce market but for certain categories, like berries, it commands up 60% of the market.

Only a fraction of Australian fresh produce is imported, reflecting the stringent biosecurity measures on imported products.

This has helped to protect Costa’s Australian business from encroaching international competition, however the company is still exposed to local competition in the form of around 18,000 small businesses operating across the Australian supply chain.

Overseas, Costa operates farms in Morocco and China. The company’s Moroccan operations license the export of blueberries to the United Kingdom and Europe. In China, Costa’s berries are farmed and sold locally. According to Costa, its international segment performed strongly in 2020, as well as in previous years.

Costa’s customer base is highly concentrated. According to the company, around 70% of its Australian sales are to just four large supermarket customers – Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), Aldi, and Metcash Limited (ASX: MTS).

How about the Costa share price?

As mentioned, the Costa share price has risen by nearly 75% over the last 12 months. In fact, in the last 6 months alone, the company’s shares have risen by around 40%.

At the time of writing, the Costa share price is trading 2.1% lower for the day so far at $4.27.

Based on current levels, the company commands a market capitalisation of $1.72 billion.

More reading

• Is it better to buy 2020’s best or worst ASX shares?
• Why Costa, Galaxy, Oil Search, & Ramelius shares are pushing higher
• The Costa (ASX:CGC) share price is slipping lower today. Here’s why
• Which ASX shares will China ‘punish’ next?

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths 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 the Costa (ASX:CGC) share price has surged 70% in a year appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2LfRxu6

The Doctor Care Anywhere Ltd (ASX: DOC) share price has been a strong performer on Friday.

In afternoon trade the UK-based telehealth company’s shares are up almost 7% to a record high of $1.45.

When the Doctor Care Anywhere share price reached that level, it meant it was up an impressive 81% since listing on the ASX late last year.

Why is the Doctor Care Anywhere share price on fire?

There have been a couple of catalysts for the strong gain by the Doctor Care Anywhere share price.

One is the belief that the company is well-placed for growth over the short and long term thanks to industry tailwinds which are being brought forward by the pandemic.

Doctor Care Anywhere is a growing UK-based telehealth company aiming to deliver high-quality, effective, and efficient care to its patients, whilst reducing the overall cost of providing clinical services.

With the UK in lockdown, demand for telehealth services is expected to be strong in the country. This could lead to a better than expected result from the company in FY 2021.

Another catalyst for this strong share price gain was an announcement in December of a major agreement with one of the world’s largest insurance and assistance companies, Allianz.

The new channel agreement with Allianz Partners will see Doctor Care Anywhere provide the insurer’s international private medical insurance policyholders and their dependents based in Europe access to digital health services.

What’s next for Doctor Care Anywhere?

The company’s founder and CEO, Dr Bayju Thakar, is positive on the future and has bold aspirations to become a global industry leader.

Commenting on its IPO, Dr Thakar said: “Whilst today marks an important milestone in Doctor Care Anywhere’s journey, we believe it is only the beginning as we look to become a leader in digital health, not just in the UK but globally, by delivering a joined-up and simple patient journey.”

“The capital we’ve raised via the IPO will allow us to better serve our current patients with a broader range of services and to execute on our clear and ambitious growth plans,” he concluded.

More reading

• 2 newly listed ASX shares to watch in 2021
• Why a2 Milk, Doctor Care Anywhere, McPherson’s, & Volpara are pushing higher
• Why the Doctor Care Anywhere (ASX:DOC) share price is surging 11% higher

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

The post Why the Doctor Care Anywhere (ASX:DOC) share price surged to a record high appeared first on The Motley Fool Australia.

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

Silex Systems Ltd (ASX: SLX) shares are on fire today after the company provided an update on its investment in GE-Hitachi Global Laser Enrichment (GLE).

At the time of writing, the Silex share price is trading at $1.45, a new multi-year high for the company.  

What’s driving the Silex share price?

The Silex share price is on the run after the company updated the market on a United States Government decision regarding the restructure of GLE. 

According to the update, the US Nuclear Regulatory Commission (NRC) will provide “stand-alone Facility Clearance” for GLE. This will effectively enable GLE to operate under new ownership as a foreign-owned entity.

The approval is subject to the closure of Silex’s Membership Interest Purchase Agreement (MIPA) that was executed in December 2019. The joint agreement was signed between Silex, Cameco Corp and GE-Hitachi Nuclear Energy. 

Should all go to plan, the agreement will result in Silex and Cameco owning 51% and 49% stakes respectively in GLE. 

Assuming continued positive outcomes regarding the US Government’s approvals over the coming weeks, the transaction is expected to be completed early this year.

Words from the CEO

Silex CEO Dr Michael Goldsworthy commented on the milestone, stating:

The granting of the GLE Facility Clearance is the key step in gaining full US Government approvals for the transaction.

We anticipate the remainder of this process to be concluded in the coming weeks, as recently disclosed. The GLE restructure has been a lengthy and challenging process, but we are now cautiously excited to be within reach of the finish line.

Silex share price performance

Over the past twelve months, the Silex share price has risen by more than 250%, significantly outperforming the broader ASX market.

In March, Silex shares dipped to a 52-week low of 17.5 cents, before reaching their multi-year high today.

At the present Silex share price, the company commands a market capitalisation of $231.5 million.

More reading

• Why the Doctor Care Anywhere (ASX:DOC) share price surged to a record high
• Why the Lycopodium (ASX:LYL) share price is on the rise today
• The Bingo (ASX:BIN) share price is up 8% today, 38% in 6 months
• Why the Firefinch (ASX:FFX) share price has surged 12% today
• Citi picks the best international share markets that can beat the ASX in 2021

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 Why the Silex (ASX:SLX) share price is soaring 25% today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3bk90fJ

The Lycopodium Limited (ASX: LYL) share price shot up over 6% earlier today, before pulling back slightly. At the time of writing, Lycopodium shares are trading at $5.05, up 3.48%. 

Let’s take a look at what Lycopodium has been up to and what might be lifting the share price.

The Orezone Gold Corporation Project

Lycopodium is an engineering and project management consultancy company with a focus on the Minerals sector. The company’s target markets extend across the Asia Pacific region, North America and Africa.

Earlier this week, Lycopodium announced that the company had been awarded a contract to provide engineering, procurement and construction management services for Orezone Gold Corporation’s State 1 Oxide Process Plant for the Bomboré Gold Project.

Responding to this win, Lycopodium’s Managing Director Peter De Leo said:

Having supported the initial study work and Front End Engineering Design for the project out of our Toronto office, we are very pleased to continue to support Orezone in the development of Bomboré. With vast experience in successfully designing and constructing gold projects in Africa, we will draw on our specialist expertise in Australia, Canada and Burkina Faso to deliver this significant project.

How has Lycopodium performed recently?

In the last released shareholder report, the company noted that regardless of the growing impact of COVID, its projects have been generally unaffected. The report goes on to boast FY20 highlights including a $211.1 million revenue and $11.8 million in earnings before interest, tax, depreciation and amortisation (EBITDA).

While COVID didn’t strike too hard against the company’s current projects, the Lycopodium shareholder report further notes that “the pandemic has significantly impacted the award and commencement of new opportunities coming to market”. 

Despite this impact, in December Lycopodium also announced that it was awarded the contract to provide engineering and procurement services for the Sandfire Resources Motheo Project located in Botswana’s Kalahari Copper Belt.

Lycopodium shares are up more than 8% this week. On the current Lycopodium share price, the company has a market capitalisation of $193.93 million.

More reading

• The Bingo (ASX:BIN) share price is up 8% today, 38% in 6 months
• Why the Firefinch (ASX:FFX) share price has surged 12% today
• Citi picks the best international share markets that can beat the ASX in 2021
• Why the IGO (ASX:IGO) share price is dropping lower
• The Energy Resources (ASX:ERA) share price is falling. Here’s why.

Motley Fool contributor Gretchen Kennedy 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 Lycopodium (ASX:LYL) share price is on the rise today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Lx6xDG

Bingo Industries Ltd (ASX: BIN) shares have risen by nearly 8% today amid a broader rise in the ASX, despite no news coming out of the waste management company. Over the last six months, the Bingo share price has also climbed by a healthy 37.6%. This was underpinned by strong net profit results in FY20, which rose by almost 200% on FY19’s numbers.

Here’s a quick rundown on Bingo Industries.

What happened in 2020?

Despite admitting that its business was disrupted by the COVID-19 outbreak, the company still posted healthy full-year results for FY20 in August last year.

Bingo reported a 21% increase in revenue of $486.7 million in FY20, and net profit after tax (NPAT) of $66 million, up by 196%.

Importantly, Bingo reported an operating free cash flow of $160.1 million, up 37.4%, which the company said will allow it to execute its strategies going into 2021.

Bingo issued FY20 dividend payments of 3.70 cents per share, down from 3.72 cents in FY19.

Outlook for 2021

During its annual general meeting (AGM) in November, Bingo advised that it expected COVID-19 headwinds to continue into 2021, with the potential for business interruption.

As a result, Bingo forecast that its group earnings before interest, tax, depreciation, and ammortisation ( EBITDA) margin will decline in FY21 by approximately 2% to 3%, before rebounding to its longer-term target of 30%.

Notwithstanding this, Bingo believes that medium-term tailwinds will still outweigh the short-term headwinds faced by the company.

In an earlier October trading update, Bingo revealed it is set to benefit from the strong government stimulus spending in infrastructure. More importantly, management expected that changes in government policy related to waste management is pivoting towards the company’s business model over the long run.

In particular, the Recycling Modernisation Fund and the Modern Manufacturing Strategy introduced by the federal government will encourage recycling as we move towards a circular economy. According to Bingo, all these changes bode well for its business.

Brief take on Bingo

Bingo is a recycling and waste management company that provides solutions across the entire waste management supply chain.

In the waste management industry, there are three major market segments: construction and demolition (C&D), commercial and industrial (C&I), and municipal waste.

The majority of Bingo’s business is in the C&D segment, and it does not participate in the municipal segment.

C&D waste collection, however, is cyclical, being closely tied to construction activity.

This contrasts with the municipal and C&I waste management segments, in which volumes are relatively stable through economic cycles.

In 2019, Bingo acquired competitor Dial-a-Dump in a $578 million deal that attracted scrutiny from the competition watchdog, the ACCC.

How has the Bingo share performed in 2020?

The Bingo share price has dropped by around 6% over the past year but, as mentioned, it has built momentum over the last 6 months, rising by nearly 38%.

At the current Bingo share price, the company has a market capitalisation of $1.65 billion.

More reading

• ASX 200 up 0.4%: Afterpay & Zip charge higher, NAB rises, Harvey Norman hits new high
• These were the worst performing ASX 200 shares last week
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Eddy Sunarto 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 The Bingo (ASX:BIN) share price is up 8% today, 38% in 6 months appeared first on The Motley Fool Australia.

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

The Firefinch Ltd (ASX: FFX) share price has rocketed today after the company released a positive quarterly gold production report.

During late-morning trade, the mineral exploration company’ shares rose to a high of 25.5 cents. However, the Firefinch share price has since given back some of those gains, retreating to 22 cents, up 12.5% at the time of writing.

What’s driving the Firefinch share price up today?

For the December quarter, Firefinch reported that it had previous forecasts by producing 4,228 ounces of gold last month. The positive result was attributed to processing tailings of the previous metal from the Morila gold mine.

In total, 7,683 ounces of gold has been extracted and processed from the open gold pit since 11 November, 2020 – when Firefinch acquired an 80% interest in the Morila gold mine.

To further develop the main gold pit, the company has been evaluating new potential ore feeds, plant and infrastructure refurbishment, as well as costings. Currently, two reverse circulation drill rigs are executing infill drilling, which will expand coverage to exploit additional gold.

Looking ahead, Firefinch reaffirmed its production guidance of 10,000 to 15,000 ounces of gold for the first quarter of 2021.

The company revealed a healthy balance sheet with cash on hand standing at $33 million at the end of December.

What did management say?

Commenting on the performance, Firefinch executive chair Alistair Cowden said:

We are delighted with the gold production and overall progress at Morila. In just two months, the Firefinch team have safely achieved above forecast production. Significant progress has been made on mine plans, costs and timelines and we very much look forward to updating our shareholders further as plans are finalised.

At the same time, we are in a very fortunate position with our Goulamina lithium asset. Recent strong interest in lithium equities has improved the standing of the Goulamina Lithium Project, one of the world’s best undeveloped and uncommitted lithium assets.

More reading

• Citi picks the best international share markets that can beat the ASX in 2021
• Why the IGO (ASX:IGO) share price is dropping lower
• The Energy Resources (ASX:ERA) share price is falling. Here’s why.
• Stock market recovery: Is it too late to find cheap shares to buy right now?
• Harvey Norman (ASX:HVN) share price hits multi-year high: Can it go higher?

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 Why the Firefinch (ASX:FFX) share price has surged 12.5% today appeared first on The Motley Fool Australia.

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

The ASX is starting 2021 on a positive footing as it builds on last year’s gains, but those looking for the best returns may need to look offshore.

The S&P/ASX 200 Index (Index:^AXJO) is up by more than 2% since the start of the year and has rebounded by nearly 50% from last March’s COVID‐19 low.

There are reasons to think ASX stocks can keep delivering over the next few months with record low interest rates and the earnings recovery. But Citigroup believes you will need to look overseas if you want the best bang for your investment dollar.

International stock markets best placed to outperform

The broker is forecasting a flat return for the MSCI ACWI Index. This index measures the performance of large- and mid-cap stocks across 23 developed and 27 emerging markets.

But within the index, Citi is expecting emerging markets (EM) and the UK share markets to outperform.

It upgraded EM to “overweight” along with the UK, but downgraded US shares to “neutral” due to valuation concerns.

Valuation a growing concern

“Global equities are currently trading on 20x 2021 consensus EPS [earnings per share], well above the 15x long-term median,” said Citi.

“The US looks most expensive on 23x. The UK is cheapest on 14x. Valuations constrain our bullishness, but can partly be justified by low bond yields and ongoing [quantitative easing].”

If you are wondering where the ASX sits, the broker rates it “neutral” as well but is urging investors to go underweight on Japanese and European (ex UK) stocks.

Three stock market predictions for 2021

There are also three themes that Citi is predicting for 2021. This includes a weak US dollar, rotation into value stocks and increasing capital flows into Environmental, Social and corporate Governance (ESG) funds.

“Ongoing fiscal expansion should drive the US$ lower, so helping EM equities and commodity stocks,” explained Citi.

“10y US treasury yields are expected to rise, which could drive further value rotation. Increasing flows into ESG funds should help more compliant markets and sector.”

Best and worst sectors

As for the sectors that are best placed to perform in the current year, the broker upgraded Materials to “overweight”. Other sectors that also have an overweight rating include Health Care, Energy and Information Technology.

On the flipside, the sectors that have the dimmest outlook in Citi’s opinion include Utilities, Financials, Consumer Discretionary and Consumer Staples.

More reading

• The Energy Resources (ASX:ERA) share price is falling. Here’s why.
• Brokers just upgraded the Sonic (ASX:SHL) share price and this other ASX stock to “buy”
• ASX 200 up 0.4%: Afterpay & Zip charge higher, NAB rises, Harvey Norman hits new high
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rose 1.6%

Motley Fool contributor Brendon Lau 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 Citi picks the best international share markets that can beat the ASX in 2021 appeared first on The Motley Fool Australia.

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

The IGO Ltd (ASX: IGO) share price has come under pressure on Friday and looks set to end the week in the red.

In afternoon trade the gold, lithium, and nickel producer’s shares are down approximately 1% to $7.50.

Despite this, the IGO share price is still up over 60% since the start of December.

Why is the IGO share price under pressure?

Investors have been selling the company’s shares on Friday despite the release of a positive announcement.

That announcement was in relation to the recently announced transaction with Tianqi Lithium and the company’s ongoing strategic review of its 30% ownership of the Tropicana Gold Operation.

In respect to the Tianqi Lithium joint venture, the company’s acquisition of an interest in a global lithium joint venture with Tianqi is progressing well.

According to the release, the company has confirmed that Tianqi Lithium received approval for the transaction from its shareholders on 5 January 2021.

Of the shareholders present and entitled to vote at its shareholder meeting, 99.97% voted in favour of the transaction between Tianqi and IGO. Management believes this is a strong validation of the “win-win” the transaction has created for the shareholders of both companies.

IGO’s Managing Director and CEO, Peter Bradford, commented: “The resounding vote of support which Tianqi has received from its shareholders further validates the value creation from this transaction for the shareholders of both companies.”

“Tianqi and IGO continue to progress the completion workstreams and we will provide further updates to the market as the remaining conditions precedent required to complete the transaction are progressed,” he added.

And in respect to its strategic review of the Tropicana Operation, the company revealed that the review of its 30% interest in the operation is ongoing. It intends to update the market on the outcome when it is appropriate to do so.

More reading

• ASX 200 rose 1.6%
• Why the IGO (ASX:IGO) share price has soared in December
• ASX 200 Weekly Wrap: ASX 200 hits a 6! Thank iron ore
• These were the best performing ASX 200 shares last week
• UBS just downgraded these outperforming ASX mining stocks

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

The post Why the IGO (ASX:IGO) share price is dropping lower appeared first on The Motley Fool Australia.

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

The Energy Resources of Australia Limited (ASX: ERA) share price has fallen after an announcement the miner will cease production at its Northern Territory Ranger uranium mine today. The company also released an update this morning on its quarterly production figures.

After lifting more than 3% in morning trading, the Energy Resources share price has since dropped 1.59% to trade at 31 cents, at the time of writing.

What did Energy Resources report this morning?

Energy Resources of Australia advised that uranium oxide processing at its 100% owned Ranger mine will cease today, as required by the Ranger authority.

The miner started uranium mining at Ranger in 1980. Since then, the mine has produced more than 132,00 tonnes of uranium oxide. The mine is located 260km east of Darwin, near the town of Jabiru, which was originally constructed for the mine’s employees.

Energy Resources reported that progressive rehabilitation activities on the Ranger Project Area are continuing. These include the transfer of tailings from its Tailings Storage Facility to Pit 3. The company forecasts bulk dredging works will be finished by late January. Tailings Storage Facility floor cleaning activities are expected to occur through the first half of 2021.

In its operations review, the company revealed it had produced 390 tonnes of uranium oxide in the December 2020 quarter. That brings uranium oxide production for the full year to 1,574 tonnes, which comes in at the upper end of its production guidance.

Energy Resources share price and company snapshot

Energy Resources is one of Australia’s largest uranium producers. The company mines, processes, and sells uranium oxide. Shares first began trading on the ASX in November 1980.

The first 11 months of 2020 were fairly uneventful for Energy Resource’s shareholders. Especially when you consider the remarkable COVID-driven volatility witnessed across most S&P/ASX 200 Index (ASX: XJO) shares last year. The Energy Resources share price was not immune to the wider selloff, however, with shares falling 17% from late February through to 23 March.

The share price really began lifting off on 10 December. Shares are up more than 103% since then. In a query from the ASX on 15 December, the company stated it was unaware of any specific reasons for the share price surge.

More reading

• Brokers just upgraded the Sonic (ASX:SHL) share price and this other ASX stock to “buy”
• ASX 200 up 0.4%: Afterpay & Zip charge higher, NAB rises, Harvey Norman hits new high
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rose 1.6%
• Is the “Blue Wave” of US Democrats good or bad for ASX investors?

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

The post The Energy Resources (ASX:ERA) share price is falling. Here’s why. appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2JSE6j8