The Pharmaxis Ltd (ASX: PXS) share price has surged 8.24% today at the time of writing, after the pharmaceutical research company announced a US$7 million payment milestone had been brought forward.

The payment will now be made on the date the United States FDA approves Pharmaxis’ drug Bronchitol. The drug is used in the treatment of cystic fibrosis and is already approved and marketed in Australia, Europe, Russia, and several other countries. 

What does Pharmaxis do? 

Pharmaxis is a pharmaceutical research company focused on drug development for inflammation and fibrotic diseases. The company has an expertise in amine oxide inhibitors, which has attracted interest from leading pharmaceutical companies looking to partner in this area of medical need. Pharmaxis has a number of approved products which it manufactures and exports from its facility in Sydney. 

How does the milestone payment work? 

Pharmaxis entered an agreement with Chiesi Farmaceutici SpA (Chiesi) for the commercialisation of Bronchitol in the United States. Chiesi funded US$22 million of the cost of the phase 3 trial of Bronchitol, which was required to seek FDA approval. Chiesi has now agreed to pay Pharmxis US$7 million of a US$10 million milestone payment when Bronchitol is approved by the FDA. This is expected to occur on 1 November 2020. Another US$3 million is payable to Pharmaxis on shipment of commercial launch stock in the first quarter of 2021. 

Pharmaxis CEO Gary Phillips said, “the development and commercialisation of Bronchitol reaches a pivotal point on November 1st. Approval by the FDA for Bronchitol would see the business segment generate immediate cash and move into profitability.”

The approval will also provide the opportunity to investigate different ways of structuring the business and funding drug development activities.  

What’s next for Pharmaxis? 

Chiesi is the exclusive distributor of Bronchitol in the US, as well as 11 countries in the European Union. Pharmaxis and Chiesi are preparing for the US launch of Bronchitol, subject to FDA approval. This will see the business segment generate immediate cash and move to profitability. According to Pharmaxis, this provides the opportunity to structure the business and activities that drive shareholder value in a much more significant way. Pharmaxis advises it is in discussions with its business partners about how to shape the future, post-FDA approval.

At the time of writing, the Pharmaxis share price is up by 8.24% to 9.2 cents per share, with a market capitalisation of $36.36 million.

More reading

• De Gray Mining share price lifts on strong results
• These small cap ASX healthcare shares could be destined for big things
• Why Cochlear, NAB, Tabcorp, & Telstra shares are tumbling lower
• Reliance Worldwide operations to continue in Victoria
• ASX marching higher despite COVID-19: Where should you invest?

Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pharmaxis Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Reliance Worldwide Corporation Ltd (ASX: RWC) share price could receive a boost after the company provided the market with an update on its Victoria operations.

Green light for Reliance manufacturing facilities

Earlier today Reliance updated shareholders on its Melbourne operations in light of Victoria’s second coronavirus lockdown. The company assured shareholders that its Melbourne operations were classified as a ‘permitted industry’ and would continue to operate, based on the guidelines provided by the Victorian Government.

With the government introducing Stage 4 restrictions in Victoria on business activities, Reliance was forced to assess the impact of the new constraints on its manufacturing and distribution facilities in the state.

The company has 4 plants in Melbourne which supply products for the domestic Australian market and Asia Pacific region. In addition, some complementary products are also manufactured in Melbourne and exported to the company’s North American operations.

In an update yesterday, Reliance assured investors that the company maintained sufficient inventory levels to mitigate any supply disruptions. The company also noted that the new restrictions in Victoria would not have any short-term impact on sales in North America.

How has Reliance performed during the pandemic?

Reliance is a plumbing supplies company and the world’s largest manufacturer of push-to-connect (PTC) plumbing fittings. The company’s flagship product ‘SharkBite’ has been embraced by plumbers who prefer the PTC technology over soldering traditional brass fittings.

In the company’s most recent trading update released in early May, Reliance noted that manufacturing operations in Australia had been scaled back. The company said that new housing construction in Australia was expected to decline over the next year, resulting in reduced manufacturing operations.

Reliance also noted that 40% of its workforce in the UK had been placed on leave, as demand in the region was down 35% to 40% on  pre-COVID-19 levels due to restricted services. However, the company also highlighted that operations in North America remained unaffected, with sales in the US continuing to track in line with expectations.

Foolish Takeaway

The Reliance share price has bounced more than 60% from its lows in late March of $1.63. At the time of writing, the company’s share price is trading slightly higher at around $2.68 following the recent update.

More reading

• How will Victoria’s stage 4 lockdowns impact ASX shares?
• Why the Reliance Worldwide share price is one to watch today
• The rocketing Aussie is shaping up as a new threat to the profit season
• Top broker picks the cheapest ASX stocks to buy today
• Broker warns Afterpay and these ASX stocks are caught in an overcrowded trade

Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you ignored all the other news and focused solely on the Australian share market’s performance since its 23 March low, you’d have no idea the nation was in the grips of a historic pandemic. No clue that a quarter of Australians are largely confined to their homes, or that all non-essential businesses in Victoria are shuttered.

Though slipping today — down by 0.66% at the time of writing — the All Ordinaries Index (ASX: XAO) is up 35% since 23 March.

Australia’s largest 200 companies by market cap have also come roaring back. Despite a somewhat weaker performance by the big four banks, the S&P/ASX 200 Index (ASX: XJO) is up 32% in that same time.

What’s next for ASX shares?

Predicting the daily, weekly or even monthly market moves is mug’s game in the best of times. In the age of COVID-19, it’s an even bigger gamble.

But as a long-term investor you can, and should, look beyond these temporary moves. Doing so will save you a lot of stress.

You should also look beyond the broader indexes’ performance to understand which sectors and specific stocks are struggling, and which are doing the heavy lifting.

I’ll get to some of those specifics shortly. But first, a look at some of the tailwinds helping to support global share markets during the pandemic.

A wall of easy money

As much as markets hate uncertainty, they thrive on easy money. And never in history have the money taps flowed so freely in major economies across the globe.

In Europe, EU ministers hammered out a fresh 750 billion-euro (AU$1.2 trillion) bailout package at the end of July. And the European Central Bank’s base interest rate remains at 0.00%.

The United States (US) Congress is still engaged in last minute negotiations on the US’s next mammoth stimulus package. The Republican’s Help, Economic Assistance, Liability Protection and Schools (HEALS) Act will pump an additional US$1 trillion (AU$1.4 trillion) into the economy…and share markets. The Democrat’s stimulus package would deliver a whopping US$3 trillion.

Interest rates in the US also remain at all-time lows, with the Federal Reserve maintaining a range of 0.00–0.25%. That’s unlikely to change anytime soon. Nor is the Fed’s quantitative easing (QE). As reported by the Australian Financial Review (AFR):

Fed policymakers repeated a pledge to use their “full range of tools” to support the economy and keep interest rates near zero for as long as it takes to recover from the fallout from the epidemic, saying the economic path will depend significantly on the course of the virus.

Here in Oz, the Reserve Bank of Australia (RBA) is unlikely to raise the official cash rate from the current record low 0.25% for a long while yet. And yesterday the RBA announced it will resume bond buying. From Bloomberg:

Reserve Bank Governor Philip Lowe announced the resumption of bond buying in Tuesday’s policy statement, when the board kept its interest rate and yield target unchanged at 0.25%. Three-year yields have been “a little higher than 25 basis points over recent weeks,” he said, adding that “further purchases will be undertaken as necessary.”

Which ASX shares stand out?

Easy money or no, not all stocks in every sector are going to deliver big gains. Some, of course, will lose money.

Real estate and the banks are all under pressure. Their time will come again. But the current situation looks unlikely to improve in the coming months. Meanwhile the share price of many leading healthcare, resources and technology stocks have gone ballistic. And I believe many have a lot more growth left ahead of them. Though, obviously, not in a straight line higher.

Companies able to capitalise on the massive surge in online shopping have really sparked investor interest. That’s a trend Wilson Asset Management was quick to jump onto.

Oscar Oberg is the lead portfolio manager at Wilson Asset Management’s microcap fund WAM Microcap Ltd (ASX: WMI). Here’s an excerpt of what he told the Australian Financial Review:

City Chic and Temple & Webster were both inaugural investments in the WAM MicroCap investment portfolio, and we are actually more positive in our outlook for these stocks today than when we first invested three years ago.

Both companies are benefiting from a structural shift to online shopping that we believe will continue to accelerate as lockdown measures are enacted to combat a second wave of coronavirus in Australia and the rest of the world.

Both companies have strong balance sheets and we see acquisitions as a strong catalyst for each business in FY2021.

The City Chic Collective Ltd (ASX: CCX) share price is up 28% year-to-date.

And leading homewares online retailer Temple & Webster (ASX: TPW)’s share price is up an eye-popping 202% so far in 2020.

Temple & Webster’s growth potential also caught the eye of The Motley Fool’s own Scott Phillips. He recommended the stock to members of his Share Advisor service on 28 May. Since then the share price is up almost 82%.

More reading

• Why this ASX miner that’s missing the rally is one of my key picks for FY21
• 2 of the best online shopping ASX shares to buy in August
• ASX 200 down 1.15%: NAB downgraded, Telstra asset sale, gold miners rocket
• 3 ASX shares I’d buy if the ASX crashes again
• ASX shares that could get a boost from Victoria’s shutdown

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The gold price has hit a new high of US$2028 per ounce, prompting a rally in ASX gold shares. Gold has been on the rise all year as the pandemic has helped drive a broad shift into safe haven assets. Gold has long been used as a hedge against uncertainty and a store of value. The gold price tends to be inversely correlated to the price of assets such as shares and bonds, meaning it provides diversification benefits. 

Australia is a leading global gold producer and the source of 17% of globally known gold resources. In 2019, Australia exported $23.3 billion worth of gold, making it the country’s fourth largest export commodity. There are 66 gold mines operating around the country which together produced 326 tonnes of gold last year, accounting for around 9% of global production. Here we take a look at three Australian ASX gold shares you can invest in for exposure to the rising gold price. 

3 ASX gold shares benefitting from surging gold prices

Newcrest Mining Limited (ASX: NCM) 

This ASX gold share is one of the world’s largest gold mining companies. It operates gold, silver, and copper mines in Australia, Canada, and Papua New Guinea. It reported a strong June quarter with gold production up 7% to 573,175 ounces. Full year production was 2,486,7389 ounces of gold, in line with guidance. Newcrest is also advancing exploration and development projects in Western Australia which are expected to add production ounces to its portfolio in due course. 

Evolution Mining Ltd (ASX: EVN) 

Evolution Mining is an Australian gold producer with five wholly owned mines. Four mines are located in Australia and the Red Lake mine is located in Canada. In the June quarter, Evolution produced 218,100 ounces of gold across its mines. This gave full year production of 746,463 ounces, above guidance of 715,000 ounces. Evolution has advised that the opportunity at Red Lake is greater than expected, with transformation of the mine progressing ahead of schedule. 

Saracen Mineral Holdings Limited (ASX: SAR)

Saracen Mineral Holdings mines gold in the Kalgoorlie region of Western Australia. Saracen produced 145,830 ounces of gold in the June quarter. This gave FY20 production of 520,414 ounces, ahead of guidance. In FY21 Saracen forecast production of 380,000 to 400,000 ounces of gold at an all-in sustaining cost of $1,200 – $1,300 per ounce. The ASX gold share is capitalising on the high gold price to ‘future-proof’ the business. Capital is being invested in the short term to de-risk production and allow for lower costs in future.

More reading

• ASX 200 down 1.15%: NAB downgraded, Telstra asset sale, gold miners rocket
• Leading fundie says the ASX gold share boom is just beginning
• 5 things to watch on the ASX 200 on Wednesday
• Should you buy ASX gold shares or FAANG stocks in August?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Calidus Resources Ltd (ASX: CAI) shares are up 1.75% at the time of writing to 58 cents. The increase in the Calidus share price came after the company announced it is set to commence construction at its Warrawoona gold project in Western Australia.

What was in the announcement?

According to the company, construction works at the Warrawoona project will begin next month. Initially, an access road and 240 person accommodation village will be constructed with the main project construction to begin in 2021. Calidus will use part of the proceeds from its recent $25 million placement, completed in July, to fund the initial construction. Environmental permits have been granted for the initial works, which are also subject to a final objection period.

Calidus Resources announced that it has appointed experienced mining executive, Don Russel, as its General Manager of Operations.

The company’s Managing Director, Dave Reeves, commented on the project, stating;

“The early works programme will ensure gold production starts as soon as possible at Warrawoona. Constructing access roads, the accommodation village and supplying communications to site paves the way for the main development works to kick off in earnest in the new year. As part of our development preparations, we are delighted to welcome Don Russel as General Manager for Warrawoona. Don has extensive operating experience at gold mines across Australia in his 30-year career and his skills will be invaluable as we move ahead with this project.”

About the Calidus share price

Calidus Resources is a gold exploration company that listed on the ASX in 2017 at a price of 2 cents per share. It controls the Warrawoona gold project in Western Australia. According to the company, the project is a 1.2 million ounce resource.

In its quarterly report to June 2020, Calidus set out that its updated pre-feasibility study demonstrated that the Warrawoona project is set to produce 85,000 ounces of gold per year at an all in sustaining cost of $1,251 per ounce. At 30 June, Calidus Resources held $5.7 million in cash and $1.4 million in listed investments.

The Calidus share price is up 2262% since its 52 week low of 2.1 cents and has returned 132% since the beginning of the year. The Calidus share price is up 71% since this time last year.

More reading

• De Gray Mining share price lifts on strong results
• These small cap ASX healthcare shares could be destined for big things
• Why Cochlear, NAB, Tabcorp, & Telstra shares are tumbling lower
• ASX stock of the day: Pharmaxis share price surges 8% as milestone payment brought forward
• Reliance Worldwide operations to continue in Victoria

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Lynas Corporation Ltd (ASX: LYC) share price swung widely today after the miner provided an update on their Malaysian operations.

The Lynas share price jumped over 3% in early trade before giving up gains to trade 0.8% lower at $2.44. Shares in the rare earth miner was dragged down by deepening losses on the S&P/ASX 200 Index (Index:^AXJO) as COVID-19 cases in Victoria spiked to a new record high.

The state recorded 725 new cases on Tuesday and that sucked confidence from the market with only defensive and gold stocks making any gains.

ASX miners golden run

The Northern Star Resources Ltd (ASX: NST) share price surged 4.8% to $16.51 while the St Barbara Ltd (ASX: SBM) share price jumped 4.5% to $3.60 at the time of writing.

But the Lynas share price should also be following gold miners higher in my opinion as the market is under appreciating its defensive qualities.

One of the key risks facing the miner is abating after management noted comments from Malaysian Minister of Science, Technology and Innovation, Khairy Jamaluddin.

Lynas risk profile improving

He said that the Atomic Energy Licensing Board (AELB) approved the proposed site at Bukit Ketam for the construction of a Permanent Deposit Facility (PDF).

The approval is subject to completion of relevant studies and final approvals by regulatory authorities.

Lynas will apply for final regulatory approval in the coming months to start construction of the facility by early 2021.

“This is a further step towards satisfying the key conditions of the three-year Lynas Malaysia operating licence that was announced on 27 February 2020,” said the miner in an ASX statement.

Strategic value not in share price

The future of Lynas’ operations in the state was under a cloud due to some community opposition as Lynas’ plant will produce low-level radioactive waste.

The PDF should help turn Water Leach Purification (WLP) residue into phosphate that can be used as fertilizer or in the construction industry.

This is a positive step forward and reinforces my view that the strategic value in Lynas is not reflected in its current share price.

Re-rating opportunity ahead

Lynas is the largest rare earths miner in the world outside of China. Rare earths are used in a wide range of critical electronics and weapons.

China is turning the minerals into a weapon in itself as it squares off against the United States and its allies.

I can see a clear re-rating opportunity for Lynas if it secures US government funding to build its JV processing plant in Texas.

The probability of this is high, regardless of who wins the November US presidential election as the country won’t want to be beholden to Chinese suppliers.

While the Lynas share price has more than doubled since the March bear market low, but it’s still lagging significantly behind other miners since the start of 2020.

I am expecting the stock to rise to $3 over the next 12-months.

More reading

• Why Mesoblast, Northern Star, PointsBet, & Splitit shares are racing higher
• ASX 200 down 1.15%: NAB downgraded, Telstra asset sale, gold miners rocket
• Coronavirus: What does lockdown mean for ASX retail shares like JB Hi-Fi?
• Leading fundie says the ASX gold share boom is just beginning
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Brendon Lau owns shares of Lynas Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) hasn’t been able to build on yesterday’s strong gains and is sinking lower on Wednesday. At the time of writing the benchmark index is down 0.9% to 5,984.8 points.

Four shares that have not let that hold them back are listed below. Here’s why they are racing higher:

The Mesoblast limited (ASX: MSB) share price is up almost 5% to $4.32. This is despite there being no news out of the company. However, one potential catalyst could be news relating to a competing COVID-19 treatment. According to CNBC, Novavax’s vaccine candidate delivered promising results, but there were concerns about its safety.

The Northern Star Resources Ltd (ASX: NST) share price has climbed over 3% to $16.25. Investors have been buying Northern Star and other gold miners on Wednesday after the gold price stormed to a new record high overnight. Traders were buying the precious metal amid optimism the U.S. will launch major new stimulus to safeguard the economy. At the time of writing the S&P/ASX All Ordinaries Gold index is up 2.3%.

The PointsBet Holdings Ltd (ASX: PBH) share price is up 2% to $6.11. This morning the sports betting company announced a multi-year agreement with Pacers Sports & Entertainment. This will see it become an official sports gaming partner of the Indiana Pacers of the NBA. As part of the agreement, PointsBet branding will be displayed along the out-of-bounds space between the baseline and the team bench. Management notes that this represents the first time a sports betting operator will occupy that space.

The Splitit Ltd (ASX: SPT) share price has jumped 10% higher to $1.50. This morning the buy now pay later company announced that it has received firm commitments to raise $90 million (before costs) in new equity. These funds will be raised via a fully committed two-tranche share placement to institutional, sophisticated, and professional investors. Splitit is raising the funds at a price of $1.30 per share, which represents a discount of 4.8% to its last close price. The proceeds from the equity raising will be used to accelerate its high-growth strategy.

More reading

• Why this ASX miner that’s missing the rally is one of my key picks for FY21
• ASX 200 down 1.15%: NAB downgraded, Telstra asset sale, gold miners rocket
• PointsBet share price jumps 4% on new US deal
• Why the Splitit share price is zooming 20% higher today
• Leading fundie says the ASX gold share boom is just beginning

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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