Tag: Motley Fool

It’s always fascinating to look at the ASX’s trading data and see which ASX 200 shares have the highest trading volume each day.

Elevated trading volumes can be influenced by all sorts of factors. Share price rises, share price falls, ASX announcements… the list goes on. But so far this Friday, it’s all about Lake Resources N.L. (ASX: LKE) shares.

According to investing.com, Lake Resources is currently the most traded share out of the entire S&P/ASX 200 Index (ASX: XJO). No mean feat for a company that only joined the ASX 200 index last month.

As it currently stands, a sizeable 13.9 million Lake Resources shares have been traded on the ASX boards so far this Friday.

That’s a lot more than the next-most traded ASX 200 share. That would be uranium share Paladin Energy Ltd (ASX: PDN), which has only had 12.36 million shares traded so far today.

So what has caused more than 13 million Lake Resources shares to find a new home so far today?

Why are Lake Resources shares topping the volume charts?

Well, there are no ASX announcements or news out of Lake Resources today. As such, it looks as though this high volume is the result of some good old-fashioned share price movements. Fortunately for investors, it’s going the right way.

Today has seen Lake Resources shares rocket. The ASX 200 lithium stock has gained an impressive 8.21% so far to 75.8 cents a share after the company closed at 70 cents yesterday.

It’s not exactly clear what is causing this share price action. But we can note that most ASX lithium shares are seeing similar moves today. Pilbara Minerals Ltd (ASX: PLS) shares are up by 7.95% so far today to $2.38, while Core Lithium Ltd (ASX: CXO) is up 4.74% to $1 a share. Liontown Resources Limited (ASX: LTR) takes the cake with its rise of 8.63% to $1.03 a share.

So it appears that this healthy share price rise across the ASX lithium space is resulting in Lake Resources claiming the most traded ASX 200 share crown so far today. Now, let’s see if it can hold the title for the rest of the trading day.

The post Lake Resources shares are the most traded today. What’s going on? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Down 40% in 2022: Is the Xero share price a buy today?
• Why did the Northern Star share price lose its shine in FY22?
• 5 things to watch on the ASX 200 on Friday
• What’s the outlook for ASX 200 dividend shares in FY23?
• Could rising rates hurt ASX 200 bank shares in the longer run?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/GxL2tz5

The Tempest Minerals Ltd (ASX: TEM) share price was sliding deep into the red around midday on Friday.

At the time of writing, the share is trading 38.6% lower at 5.4 cents apiece. It closed the session yesterday at 8.8 cents each.

Sellers are pushing the Tempest share price down following a company announcement made before the open today.

In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is lifting more than 2% into the green today.

What did Tempest Minerals announce?

The Australian mineral exploration company announced it had completed a downhole electromagnetic (DHEM) survey at the Orion Target in its Meleya Project in Western Australia.

It also advised that it had received initial assay results from drill hole WARDH72 at the Orion Target. The company has previously announced mineralisation at this hole.

DHEM is used to identify and mark out geological formations underground, in the exploration of various sulphide and ore bodies.

Tempest said the DHEM survey was conducted to complement assay results and “further understand the mineral occurrence”.

Additional geophysics and drilling are planned during this quarter to follow up on this target and commence exploring other targets in the newly confirmed mineralised belt.

Tempest advised:

Preliminary results from WARDH72 have confirmed the widespread presence of copper and other metals which support the continuation of further aggressive exploration at the project.

The company noted further assay results were due in August 2022 which would “coincide with further data interpretation and additional drill planning at Orion”.

In the last 12 months, the Tempest Minerals share price has soared more than 139% into the green.

The post Why is the Tempest Minerals share price cratering 38% today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Lake Resources shares are the most traded today. What’s going on?
• Eastern Resources share price jumps 19% on ‘outstanding’ lithium results
• Down 40% in 2022: Is the Xero share price a buy today?
• Vulcan Energy share price leaps 8% on Italian energy producer agreement
• Why is the Chalice Mining share price racing higher today?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/dCAiEvO

The Eastern Resources Ltd (ASX: EFE) share price is taking off today following the company’s latest drilling results.

At the time of writing, the lithium developer’s shares are 19.23% higher to 3.1 cents apiece.

What did Eastern Resources announce?

Investors are bidding up the Eastern Resources share price after the company announced “outstanding initial assay results” at the Trigg Hill Lithium-Tantalum Project in Western Australia.

In its release, Eastern Resources advised that rock-chip assays confirm extensive lithium-caesium-tantalum (LCT) pegmatites from its recent field works.

The results included up to 2.28% Li2O (lithium), 1.23% Rb2O (rubidium), 1,552ppm (parts per million) Cs2O (caesium), 514ppm Ta2O5 (tantalum pentoxide) and 2,921ppm SnO2 (tin).

The assay came from the first 124 rock chip samples which confirmed visual observations of previously reported lithium mineralisation.

Since March 2022, the company has been conducting fieldwork at the Trigg Hill Project. This comprises traverse mapping, rock chip sampling of outcropping pegmatites, and soil sampling.

Further up the E 45/5728 permit, the results of 231 soil samples from the Curlew East area are pending analysis.

Should the assays return positive results, soil sampling may be extended to other areas.

Eastern Resources noted that drill site and access planning is well advanced. The aim is to test both mineralised pegmatites for a better understanding of “zonation and lithium mineralisation”.

Eastern Resources share price snapshot

Over the past 12 months, the Eastern Resources share price has rocketed by more than 70%.

The company’s shares reached a multi-year high of 9.7 cents in November, before settling back.

Based on today’s price, Eastern Resources commands a market capitalisation of roughly $25.86 million.

The post Eastern Resources share price jumps 19% on ‘outstanding’ lithium results appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Down 40% in 2022: Is the Xero share price a buy today?
• Vulcan Energy share price leaps 8% on Italian energy producer agreement
• Why is the Chalice Mining share price racing higher today?
• The Mineral Resources share price is leaping higher again today. Here’s why
• Here’s why the Melbana Energy share price is ripping 19% ahead today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/y9Vo0rN

The Chalice Mining Ltd (ASX: CHN) share price is surging in morning trade on Friday.

At one point during the day, Chalice had surged more than 7% into the green, before settling down to its current levels of less than 1% higher at $4.02.

Investors might be bidding up the Chalice Mining share price in response to a company announcement regarding its Julimar nickel-copper-platinum group element (PGE) project in WA.

What did Chalice Mining announce?

The company reported an updated mineral resource estimate for the Gonneville Deposit that is located on the Julimar PGE project.

Chalice says that since it reported its first maiden resource estimated in November 2021, it has focused on shallow infill drilling at Gonneville.

It’s done this “to improve the confidence level of the resource from the Inferred category to Indicated”.

“The proportion of Indicated category resources has increased from approximately 45% to approximately 70% of the total,” it said.

“The drilling and remodelling has resulted in a ~5% increase in the Resource mass and contained nickel
equivalent metal relative to the maiden estimate.”

Chalice reckons the increase boils down to a number of factors, including an increase in the resource shell pit size and the updating of pit optimisation parameters.

Drilling is also pushing ahead at a deposit located outside of the resource. Assays are currently pending for 90 drill holes there.

Management commentary

Speaking on the announcement, Chalice CEO, Alex Dorsch said work to date at Gonneville had shown its “world-class endowment, scale and quality”.

Apart from further increasing the contained metal, this Resource update has resulted in a significant
increase in the higher-confidence Indicated Resource – which now represents approximately 70% of the total.

Importantly, 90% of the resource above a depth of 250m is now classified as Indicated, which
represents a major de-risking step for the Project.

Chalice CEO, Alex Dorsch

In the last 12 months, the Chalice Mining share price has slipped more than 44% into the red.

The post Why is the Chalice Mining share price racing higher today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top broker says the Chalice Mining share price can rise almost 200%
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• Why Chalice Mining, Damstra, Link, and Pinnacle shares are storming higher
• ASX 200 midday update: Chalice Mining jumps, Zip sinks on bearish broker note

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/ChxaH4Z

It’s proving to be a happy end to the trading week for the S&P/ASX 200 Index (ASX: XJO) so far this Friday. At the time of writing, the ASX 200 has gained a healthy 0.77% to just under 6,700 points. But the day is going even better for the Xero Limited (ASX: XRO) share price.

The online accounting software provider is currently up 2.54% to $87.85 a share. That’s a gain three times that of the broader market.

But zooming out and the picture doesn’t look quite so rosy for Xero.

This ASX 200 tech share remains down 40% so far in 2022, contrasting nastily against the ASX 200, which is down by around 12% this year.

Saying that, we have seen a significant rebound for Xero in recent weeks. It was only mid-last month that Xero hit a new 52-week low of $72.53 a share (on 17 June). Since then, Xero shares have rebounded by more than 20%.

So have we seen a bottom for Xero shares?

Is the Xero share price an ASX 200 buy today?

Well, not one, but two ASX brokers think it might be. As my Fool colleague Tristan covered this week, ASX broker Morgans is our first Xero enthusiast.

This broker recently put an “add” rating on Xero shares, replete with a 12-month share price target of $90.25. That’s not too far from where Xero shares stand today.

Morgans reckons Xero has plenty of growth left in the tank and likes where the company’s subscriber numbers and average revenue per user metrics are heading.

But Morgans isn’t the only one bullish on Xero right now. Fellow broker Ord Minnet is also buy-rated on Xero shares today.

This broker has an even higher share price target of $97, which would represent a potential upside of more than 10% on current pricing.

Like Morgans, Ord Minnet is optimistic over Xero’s revenue per user metrics and reckons Xero’s recently announced price hikes will bode well for the company going forward.

So that’s how two ASX brokers view the Xero share price today. A bullish outlook to be sure, but only time will prove who ends up being correct.

In the meantime, the current Xero share price gives this ASX 200 tech share a market capitalisation of $13.04 billion.

The post Down 40% in 2022: Is the Xero share price a buy today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why did the Northern Star share price lose its shine in FY22?
• 5 things to watch on the ASX 200 on Friday
• What’s the outlook for ASX 200 dividend shares in FY23?
• Could rising rates hurt ASX 200 bank shares in the longer run?
• It’s been a crazy year for Core Lithium shares so far. What’s next?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/dh8XVQC

The Vulcan Energy Resources Ltd (ASX: VUL) share price is taking off on news the company has entered an agreement with an Italian renewable energy giant.

Vulcan Energy and Enel Green Power (EGP) have agreed to work together to explore the development of the Cesano licence.

At the time of writing, the Vulcan Energy share price is $5.89, 7.88% higher than its previous close.

Let’s take a closer look at today’s news from the ASX lithium share.

Vulcan Energy share price takes off on Friday

The Vulcan Energy share price is launching higher after the company announced EGP is onboard to explore the development of the Cesano licence. The companies may also cooperate on other Italian geothermal lithium projects.

Under the agreement, EGP will take a 50% hold in the Cesano licence, located near Rome.

The project houses a geothermal well with high average lithium-in-brine grades. It’s considered to have the potential for sustainable lithium battery chemicals development.

EGP’s parent company has already engaged in exploration in the area, drilling numerous wells and gathering data from local reservoirs.

The companies will take a step-by-step approach to assess the project’s potential, starting with a scoping study.

Vulcan managing director Dr Francis Wedin commented on today’s news, saying:

As the largest producer of geothermal renewable energy in Italy, [EGP] is a leader in its field and has strong, positive relationships in the region. We look forward to working with [EGP] to make a lasting and sustainable contribution to the local community.

What else did the company announce?

On top of its fresh deal, Vulcan Energy released good news about its flagship Zero Carbon Lithium Project.

A preliminary application to drill six wells for geothermal energy and lithium has had a win, with authorities determining its environmental impact can’t be assessed as significant. That means a full environmental impact assessment isn’t needed.

Additionally, the Upper Rhine Council has shown support for geothermal energy production.

The company also noted that the initial commissioning of the Sorption Demo Plant is behind schedule. It’s set to commence late in the fourth quarter. Commissioning of ‘LiLy’, Vulcan Energy’s lithium hydroxide production demo plant is on track to start commissioning later this quarter.

And finally, the company is working on phase one and two definitive and pre-feasibility studies for its renewable energy and lithium production. It’s aiming to increase production in both phases relative to previous pre-feasibility study assumptions due to higher customer demand. Though, it noted the studies’ completion may be delayed by local approval processes.

Meanwhile, its gathering data for a planned resource update in the second half of 2022.

The post Vulcan Energy share price leaps 8% on Italian energy producer agreement appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why did the Vulcan Energy share price crater 28% in June?
• Down 8%, why is the Vulcan Energy share price burning away today?
• How is the Vulcan share price performing against its sector this month?
• 3 ASX All Ordinaries shares going gangbusters on Friday
• Why Betmakers, Block, Lake Resources, and Vulcan shares are racing higher

Motley Fool contributor Brooke Cooper has positions in Vulcan Energy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/OoWNEA4

The Mineral Resources Limited (ASX: MIN) share price is charging higher today, currently up 6.4% to $47.70.

The S&P/ASX 200 Index (ASX: XJO) mining services company and resource producer is enjoying its second day of big gains, having closed up 4.5% yesterday at $44.83.

So, why are Mineral Resource shares rallying? Let’s take a closer look.

What’s piquing ASX 200 investor interest?

Among its other holdings, Mineral Resources has a portfolio of mining operations focused on iron ore.

Mineral Resources shares have come under pressure in recent months as China’s voracious demand for the industrial metal has slipped as the country continues its economy-hobbling COVID-zero policies.

But iron ore staged another rally overnight. After gaining 1.8% the previous night, iron ore is up another 2.2% to US$115 per tonne.

That’s not only helping drive the Mineral Resources share price to another strong performance. It’s also pushing most large-cap resource stocks higher, as witnessed by the outperformance of the S&P/ASX 200 Resource Index (ASX: XJR).

While the ASX 200 is up a healthy 0.9% at the time of writing, the ASX 200 Resource Index has gained more than three times that much, up 2.8%.

Industry giant BHP Group Ltd (ASX: BHP) has gained 2.1% today, while Fortescue Metals Group Limited (ASX: FMG) is up 2.7%.

Atop its iron ore exposure, Mineral Resources has a strong lithium portfolio, and the broader lithium sector is also seeing some outsized gains today.

Mineral Resources share price snapshot

Despite the two-day rally, the Mineral Resources share price remains down by 19% in 2022. That compares to a 12% year-to-date loss posted by the ASX 200.

Mineral Resources shares are also down by 16% over the past year and by more than 20% over the past month.

Longer-term, they are up 291% over five years.

The post The Mineral Resources share price is leaping higher again today. Here’s why appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX shares today
• Is now the time to be buying beaten down ASX 200 mining shares?
• These ASX 200 mining shares are bouncing back on Thursday
• Here’s what led the Mineral Resources share price to sink 25% in June?
• Why are these ASX 200 mining shares behind the eight ball today?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/aJT10qU

The Melbana Energy Ltd (ASX: MAY) share price is on course to end the week on a very positive note.

In morning trade, the oil and gas exploration company’s shares are up 19% to 12.5 cents.

Why is the Melbana Energy share price racing higher?

Investors have been bidding the Melbana Energy share price higher today after the company released an update on its Alameda Reservoir in Cuba.

According to the release, independent reserves and resources certifier McDaniel & Associates has completed its resource assessment for the second reservoir encountered by the Alameda-1 exploration well – the Alameda structure.

It certified the following:

• 3 billion barrels of oil in place
• 148 million barrels of Prospective Resource
• 56% chance of discovery

What does this mean overall?

This means that the first two reservoirs have now been independently assessed to contain a combined 4.8 billion barrels of oil in place and 267 million barrels of prospective resource.

But it may not end there. The company reminded investors that there’s still a third structure to add into the equation in the future. McDaniel’s resource assessment of the third and final structure encountered is still to be received.

Melbana Energy’s executive chairman, Andrew Purcell, was very pleased with the news. He commented:

This is a pleasing and very material addition to the considerable prospective resource estimate previously announced for the Amistad structure in the upper sheet. It reminds us all of the potential scale of the reservoirs that were encountered whilst drilling the Alameda-1 exploration well – a total volume of estimated recoverable resource that we expect will increase further again once the estimate for the final structure, Marti, is available to us.

The post Here’s why the Melbana Energy share price is ripping 19% ahead today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why did the Allkem share price soar 60% in FY22?
• Here’s why the Magellan share price is sinking 6% today
• A high-quality ASX 200 share to capitalise on market volatility: fundie
• The Vanguard Australian Shares Index ETF hit an all-time high in FY22 … and finished down more than 10%
• Which e-commerce company is the best buy during this bear market?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

from The Motley Fool Australia https://ift.tt/ZFmtX6f

The Allkem Ltd (ASX: AKE) share price surged overall in the financial year despite a tough June.

The lithium explorer’s share price leapt 59.8% from $6.45 at market open on 1 July 2021 to $10.31 at market close on 30 June. In today’s trade, the Allkem share price is currently rising 5.94% at $10.53.

Let’s take a look at how the Allkem share price performed in the 2022 financial year.

How did the year pan out?

The Allkem share price hit a financial year high of $14.01 on 27 May before descending in June.

Allkem is a global lithium explorer with a wide range of projects in Western Australia, Argentina, Japan and Quebec.

The company’s shares surged in November to $10.08 after the company’s AGM. In this update, Allkem, then known as Orocobre, advised that lithium demand was expected to grow until 2040.

In December, Allkem was added to the ASX 100 index in a quarterly rebalance. Shares jumped on the back of this news. The company also changed its name from Orocobre to Allkem.

In January, Ord Minnett downgraded the Alkem share price from a buy to accumulate with a $12.50 price target.

Broker updates were more positive for Allkem in February. Morgans placed a $14.83 price target on Allkem in March, due to predictions of strong earnings growth in the future. Bell Potter also predicted the company’s share price could double. The broker was positive on the outlook of lithium prices.

In February, Allkem shares leapt on the back of the company’s half year results. Allkem reported US$192.3 million of revenue in the first half of the year. The Olaroz project in Argentina saw a 142% boost in revenue.

In early April, Allkem shares were on the rise amid news from the company’s Argentina operations. The Olaroz resource increased from 6.4 to 16.2 million tonnes of lithium carbonate equivalent (LCE). Meanwhile, at Sal de Vida, Allkem expanded future capacity to 45,000 tonnes per annum (tpa).

Investors appeared to respond well to Allkem’s quarterly update in April. The Mt Cattlin and Olaroz operations both achieved record revenue. The company reported revenue of US$235 million and a gross operating cash margin of US$189 million in the third quarter.

In May, the Allkem share price benefited from positive broker coverage. Morgans placed a $16.98 price target on the company’s shares with an add rating. At the time, analysts said:

AKE has been a strong performer in recent weeks but we continue to see long term valuation upside with persistent tightness in the lithium market.

June was a tough month for the Allkem share price. However, it was not alone in the lithium sector. Lake Resources N.L. (ASX: LKE) shares slid 49%, while Core Lithium Ltd (ASX: CXO) shares fell 31%. A note out of Goldman Sachs predicting lithium demand to fall weighed on ASX lithium shares.

Allkem share price summary

Allkem shares have jumped 56% in a year and 1% year to date.

In contrast, the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen 11% in a year and 8% year to date.

The company has a market capitalisation of about $6.71 billion based on its current share price.

The post Why did the Allkem share price soar 60% in FY22? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX shares today
• Is now the time to be buying beaten down ASX 200 mining shares?
• Can ASX lithium shares recharge in FY23?
• ASX lithium stocks avoid share price shock amid commodities lashing
• Down 25% in a month, what is the outlook for the Allkem share price in July?

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/N9b4qEI

The market may be pushing higher today but the same cannot be said for the Magellan Financial Group Ltd (ASX: MFG) share price.

In early trade, the struggling fund manager’s shares were down as much as 6% to $11.51.

The Magellan share price has recovered a touch since then but remains 2.5% lower at $11.96 at the time of writing.

Why is the Magellan share price under pressure?

Investors have been selling down the Magellan share price again this morning after the embattled fund manager released its latest funds under management (FUM) update.

As you might have guessed from the reaction by investors, that update wasn’t a very positive one. In fact, Magellan revealed that its FUM continues to bleed out.

According to the release, Magellan’s FUM stood at $61.3 billion at the end of June. This is down 5.7% from $65 billion at the end of the previous month.

As shown below, the company saw its FUM fall across the board.

• Global Equities FUM fell 5.4% to $33.3 billion
• Infrastructure FUM was down 2.9% to $20.1 billion
• Australian Equities FUM dropped 13.2% to $7.9 billion

What happened?

Management advised that this reflects unfavourable market movements and net outflows across both retail and institutional channels. It explained:

The change in FUM over the June quarter comprised market movements (reflecting recent volatility and foreign exchange) and net outflows. For the June quarter, Magellan experienced net outflows of $5.2 billion, which comprised of net retail outflows of $1.7 billion and net institutional outflows of $3.5 billion.

The company also provided an update on its performance fees for FY 2022. It revealed that it is entitled to estimated performance fees of approximately $11 million for the year ended 30 June 2022. This is down from approximately $30 million a year earlier.

The Magellan share price is now down almost 40% in 2022.

The post Here’s why the Magellan share price is sinking 6% today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 ASX dividend shares with the highest yields in FY22
• Here are the top 10 ASX shares today
• Wipeout: Why did the Magellan share price sink 70% in FY22?
• Why Audio Pixels, Lake Resources, Link, and Magellan shares are dropping
• Why is the Magellan share price sinking 9% today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/TSckYI8