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The Challenger Ltd (ASX: CGF) share price is sliding in lunchtime trade, down 3.7% to $7.25 per share.

Shares in the financial services company lost 0.4% yesterday, following its investor day presentation.

Those losses came despite the company reporting its normalised net profit after tax (NPAT) guidance for the 2022 financial year was likely to be at the higher end of its $430 million to $480 million guidance estimate.

With the Challenger share price down another 4% today, is it a buy?

An ASX share to benefit from rising rates

While some sectors are facing significant headwinds from rising interest rates – we’re looking at you ASX tech shares – others can benefit from higher rates.

Indeed, the Challenger share price could be one to get a lift, as rising yields from its annuity products are likely to attract fresh interest from retirees and other income investors.

So, are Challenger shares a buy?

According to UBS, yes.

Citing benefits from a rising interest rate environment – following record low rates during the pandemic years – the broker lifted its price target and upgraded Challenger to buy.

UBS said (courtesy of the Australian Financial Review) that Challenger was “on the cusp of a material rebound in life profitability“.

UBS head of insurance and diversified financials Scott Russell said:

It is not clear to us that consensus has fully factored this in. This has also addressed our previous concern that the group’s ROE [return on equity] was below its cost of equity, eroding shareholder value. We have lifted our price target and upgrade to a buy rating.

Challenger share price snapshot

The Challenger share price has been a strong performer, up almost 6% year-to-date and 44% higher over the past 12 months.

That compares to a year-to-date loss of 5.4% posted by the S&P/ASX 200 Index (ASX: XJO), while the ASX 200 is up 1.0% over the 12 months.

Challenger shares pay a 2.9% trailing dividend yield, fully franked.

The post The Challenger share price is sliding 4% today. Is it a buy? appeared first on The Motley Fool Australia.

More reading

• What’s going on with the Challenger share price today?
• 2 ASX shares (not banks!) to boom from rising interest rates: experts
• 3 ASX 300 shares rocking new 52-week highs on Thursday
• ‘Outlook bright’: expert picks 2 ASX shares to buy right now

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 recommended Challenger Limited. 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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Shares of AGL Energy Limited (ASX: AGL) are tracking higher on Wednesday to trade at $8.58 apiece.

Investors are bidding up the AGL share price despite further action against the energy giant’s planned spinout of its coal assets, reports say.

In wider market moves, the S&P/ASX 200 Energy Index (ASX: XEJ) has also climbed 71 basis points on the day.

AGL faces renewed pressure against demerger

In the latest blow for AGL’s planned divestment, industry super fund giant HESTA has stepped into the ring and shown its apprehension to the move.

HESTA owns a 0.36% stake in the energy giant per Bloomberg data. In a statement, the $68 billion super fund giant affirmed it will reject AGL’s demerger when voting next month, with CEO Debby Blakey noting AGL’s “emissions [are] effectively flowing through [HESTA’s] portfolio”.

“Shareholders are pushing for greater action on climate change and a more rapid transition that aims to enhance the company’s ability to create long-term, sustainable value,” Blakey said, cited by The Australian.

“AGL is one of Australia’s biggest emitters…If AGL commits to Paris-aligned emission reduction targets this will have a hugely positive impact on Australia’s pathway to net zero, lowering the overall systemic risk exposure of our members’ investments,” she added.

HESTA now joins the likes of billionaire tech entrepreneur Mike Cannon-Brookes – who earlier this year stepped in to veto the demerger in buying an 11% stake in the company – and a raft of other heavyweights in opposing the manoeuvre, including activist investor Snowcamp and Wilson Asset Management (WAM) chair Geoff Wilson.

Commentary from HESTA’s Blakey confirms the supergiant is well aligned with the criticism from these above entities:

We cannot simply divest away from the risk of Australia being slow to transition to a low-carbon future.

Responsible investors have a responsibility to their members to go to where the biggest emissions are and as owners try and first change the behaviour of these companies.

The demerger meeting is scheduled for 15 June and needs a 75% voting majority to go ahead. Interesting times in the month ahead for AGL, that’s for sure.

In the last 12 months, the AGL share price has clipped a 4% gain but has soared more than 40% this year to date.

The post AGL share price lifts despite intensifying demerger opposition appeared first on The Motley Fool Australia.

More reading

• What might a Labor government mean for ASX energy shares?
• AGL share price struggles as WAM boss slams demerger plan
• What might an ‘election won and lost on climate’ mean for AGL shares?
• Here’s why AGL shares hit the headlines again on Friday
• Why have AGL shares been getting so much love on Tuesday?

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.

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

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

What happened

After a brief respite on Monday, shares of electric vehicle (EV) leader Tesla (NASDAQ: TSLA) turned back south again on Tuesday. As of 11:50 a.m. ET today, the stock was down 4.5%.

So what

Tesla has announced plans to resume full-capacity production of EVs at its Shanghai Gigafactory as early as today. If it succeeds in getting production back up to full speed, it could be churning out nearly 950,000 vehicles per year in China, putting it back on track toward its goal of producing 1.5 million EVs per year. But probably not this year.

As Daiwa warns today in a note covered by The Fly, Tesla has already lost about 100,000 units of potential production in Shanghai as it sat on the kerb and waited for Chinese COVID containment regulations to lapse. Adding to Tesla’s troubles, Daiwa believes production ramp-ups at Gigafactories in Texas and in Germany have been slower than planned, reducing total 2022 potential production by another 80,000 vehicles.  

Result: In a year when Tesla aimed to produce 1.5 million EVs, it might succeed in building only 1.2 million.

Now what

And that’s OK. On the one hand, Daiwa cites this expected production miss as the reason it’s cutting its price target on Tesla by more than 30%, to $800 a share. Yes, this lower value on shares could complicate Elon Musk’s plan to finance his acquisition of Twitter (as analysts at Bernstein commented today). And yes, rival Volkswagen could very well try to take advantage of Tesla’s weakness at this point to accelerate its own EV plans and overtake it in sales by 2025.  

But it’s pretty irrelevant whether Tesla achieves 1.5 million EVs produced this year. In the grand scheme of things, that’s a short term and rather arbitrary milestone. What’s important is whether the company succeeds in producing at the rate of 1.5 million cars per year after the lockdown ends. And not only does Daiwa think it will, but that analyst estimates the company will keep growing its production, probably hitting 1.8 million cars in 2023.

That’s the goal you should focus on: what happens after the lockdown goes away and Tesla’s growth is able to rev higher unhindered. As long as it keeps doing that, this growth story remains intact.

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

The post Why Tesla stock turned south today appeared first on The Motley Fool Australia.

More reading

• Why Tesla stock finally bounced today
• Nasdaq sell-off: 2 growth stocks billionaires were buying in Q1
• Down almost 30% in the past month, here are 2 reasons to buy Tesla shares and 1 reason to hold off
• Why Tesla stock fell again today
• Why Tesla stock got dented today

Rich Smith 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 Tesla and Twitter. 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.

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

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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher. The benchmark index is currently up 0.8% to 7,183.6 points.

Here’s what is happening on the ASX 200 today:

BHP share price sinks

The BHP Group Ltd (ASX: BHP) share price has taken a big tumble on Wednesday. This has been driven by the Big Australian’s shares trading ex-dividend for its in-specie dividend. Eligible BHP shareholders can now look forward to receiving one new Woodside Energy Group Ltd (ASX: WDS) share for every 5.534 BHP shares they own when the demerger of BHP’s petroleum assets completes on June 1.

Pilbara Minerals shares fall following BMX auction

The Pilbara Minerals Ltd (ASX: PLS) share price is dropping today. This is despite the lithium miner releasing the results of the fifth Battery Material Exchange (BMX) auction. A cargo of 5,000 dmt at a target grade of ~5.5% lithia received a winning bid of US$5,955 per dry metric tonne. This was up from US$5,650 per tonne last month. While this came in 9% ahead of what Macquarie Group Ltd (ASX: MQG) was expecting, some investors appear to have been betting on even stronger pricing.

Worley wins two new contracts

The Worley Ltd (ASX: WOR) share price is charging higher today. This follows the announcement of two new contract wins. The first is the award of a contract for the fourth expansion of an integrated polyolefins complex in Ruwais, United Arab Emirates. The other is a contract by Heartwell Renewables for field engineering services for a greenfield renewable diesel plant in Hastings, Nebraska.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Nufarm Ltd (ASX: NUF) share price with a 5% gain. Bargain hunters appear to be swooping after recent weakness. Going the other way, the worst performer has been the BHP share price with an 8.5% decline. This has been driven by its shares trading ex-dividend this morning.

The post ASX 200 midday update: BHP and Pilbara Minerals shares tumble appeared first on The Motley Fool Australia.

More reading

• Do South32 shares have exposure to ‘green metals’?
• What exactly is the difference between Woodside Energy (WDS) and Woodside Petroleum (WPL)?
• Pilbara Minerals share price falls despite record BMX auction
• Why is the BHP share price sinking 10% today?
• 3 ‘disruptive’ ASX companies Aussies now can’t live without

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.

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South32 Ltd (ASX: S32) is one of the most diversified mining shares on the S&P/ASX 200 Index (ASX: XJO). Most miners tend to focus on one or two commodities. Take Fortescue Metals Group Limited (ASX: FMG). Despite its recent talk of expanding into hydrogen, Fortescue essentially remains a pure-play iron ore company today.

Fortescue’s fellow blue-chip miners in Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) are more diversified. But iron ore remains the most important commodity for these companies as well. Especially considering BHP has just finalised the sale of its petroleum assets to Woodside Energy Group Ltd (ASX: WDS).

But South32 is a different beast. It was spun out of BHP back in 2015. This was done to ensure BHP could streamline into its four most important commodities at the time – iron ore, oil, copper, and coal. Everything else that BHP owned got bundled into South32 and demerged.

So what does the South32 commodities portfolio look like today? And more importantly, do South32 shares give investors exposure to green metals?

Well, that’s a good question. And it largely rides on what you might define as a ‘green metal’. Obvious candidates like lithium can be ruled out. South32 is not a lithium miner and has no exposure to this quintessential green metal. But it does have some exposure to some other future-facing metals.

Is South32 an ASX green metals share?

Let’s start with the main ones. South32 has major operations in aluminium. It produces aluminium, as well as alumina and the ore bauxite, through its facilities in Africa. However, while aluminium is an important metal in our economy, it can’t really be described as a green metal. South32’s metallurgical coal operations are also a non-starter when it comes to green metals.

South32 also produces lead, manganese, and zinc. Again, these are essential base metals. But not what a typical investor might get too excited about when it comes to environmental impacts.

But we get a little warmer when examining South32’s silver operations. The company owns the Cannington mine in North Queensland, which is a world-leading source of silver. While silver’s applications remain tilted towards jewellery and electronics, silver is also a key ingredient in making solar panels.

But perhaps South32’s ‘greenest’ commodities come in the form of copper and nickel. These two metals have been used for thousands of years, including in countless applications today. However, both nickel and copper are essential ingredients in electric motors and batteries – the kind you will find in the next generation of electric cars and vehicles. These we can call ‘green metals’ for most intents and purposes.

So, all in all, South32 shares provide an investor with exposure to a wide range of minerals and metals. Some of these can be considered green, others less so.

At the current South32 share price, this ASX 200 miner has a market capitalisation of $21.94 billion, with a dividend yield of 3.53%.

The post Do South32 shares have exposure to ‘green metals’? appeared first on The Motley Fool Australia.

More reading

• 3 ‘disruptive’ ASX companies Aussies now can’t live without
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today
• What does AFIC’s ASX share portfolio look like?
• Here are the 3 most traded ASX 200 shares on Tuesday

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.

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The S&P/ASX 200 Health Care Index (ASX: XHJ) is in the red today, but one ASX biotech share is beating the trend.

The Vectus Biosystems Ltd (ASX: VBS) share price is soaring 13.6%, currently trading at $1.25. In contrast, the ASX 200 Health Care Index is down 0.57% at the time of writing.

So why is this ASX biotech share having such a good day?

Human trial success

Vectus is working on treatments for fibrosis and high blood pressure to combat heart, kidney and liver diseases.

The company’s lead compound is VB0004 to treat high blood pressure and hardening functional tissue.

In today’s news, the company reported the results of the Single Ascending Dose Study for a human clinical trial. Five doses of VB0004 were administered with no adverse events to date. The 300mg dose significantly added to the therapeutic safety margin for VB0004.

Pharmacokinetic analysis showed the plasma half-life is 17 to 17.5 hours and maximal concentration after dosing takes place at six to eight hours. Vectus said this showed VB0004 was responsive to one dose per day.

A Multiple Ascending Dose (MAD) study involving the daily doses of 10mg for 14 days of VB004 to patients also showed no adverse events. A second group of people will now be involved in the MAD study, with three people already enrolled.

The results were reviewed by the Trial Safety Review Committee.

Vectus chair Ron Shiner said:

This is an exciting development in Vectus’ journey of validating an orally-dosable anti-fibrotic, which could not just slow down disease progression, but in fact, potentially provide clinical reversal of existing damage in a truly transformational agent.

Vectus share price snapshot

Vectus shares have rocketed nearly 29% in the past 12 months, but they are down 11% year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has climbed 2% during the past year.

The ASX biotech share has a market capitalisation of about $45 million based on its current share price.

The post Why is this ASX biotech share leaping 14% today? appeared first on The Motley Fool Australia.

More reading

• Is Telstra an ASX 200 share worth owning right now?
• Tabcorp share price slumps another 7% following demerger
• What’s happening with ASX 200 tech shares today?
• The Galileo Mining share price has been on a tear, but now it’s halted. What’s happening?
• Why Snap stock cratered on Tuesday

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.

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Could Telstra Corporation Ltd (ASX: TLS) be one of the best ASX blue-chip shares to own?

The telco is certainly one of the biggest businesses in the S&P/ASX 200 Index (ASX: XJO) with a market capitalisation of $45 billion, according to the ASX.

But simply being a large business doesn’t mean it’s a good option. There is more to it than that.

The prospect of growing earnings could be one of the more important things to look for. Let’s start with the prospect of profit rising.

T25 strategy

Telstra is just finishing up its T22 strategy, and now it’s going to work on its T25 strategy for the next few years.

The thought is that Telstra’s T25 strategy will deliver “growth, exceptional customer experiences and continued network and tech leadership”.

The blue-chip ASX share expects to achieve a compound annual growth rate (CAGR) of mid-single digits for the underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to FY25. Telstra is also expecting a high-teen CAGR of underlying earnings per share (EPS) to FY25.

Part of that growth will come from the plan to reduce net fixed costs by another $500 million between FY23 and FY25.

Telstra also plans to ‘win’ with 5G by expanding its 5G network coverage to 95% of the population. Australian-based contact centres will support this expansion.

The company expects 80% of all mobile traffic to be on 5G by FY25. It’s already thinking about 6G, saying early planning will “clearly” be on the agenda by the end of T25.

Dividends

One of the things that many Aussies seem to want from their ASX blue-chip shares are dividends.

Telstra has committed to maximising its fully-franked dividends for shareholders and looks to grow them as cash flow, profit, and franking credits allow.

The telco has continued to pay an annual dividend of 16 cents per share, which translates into a grossed-up dividend yield of 5.9%.

Diversification

Some businesses have multiple earnings streams rather than having all the profit ‘eggs’ in one basket.

While Telstra earns most of its profit from providing telecommunications services in Australia, it is growing in other areas.

It is increasing its earnings presence in Asia (including the acquisition of Digicel Pacific). That deal made the ASX blue-chip share a leading provider of telecommunication services across Papua New Guinea, Fiji, Nauru, Samoa, Tonga and Vanuatu.

The business also has growing exposure to healthcare with its Telstra Health division. It expanded this by buying MedicalDirector.

Is the Telstra share price a buy?

The broker Morgan Stanley certainly thinks so, with a buy rating on the telco. The price target is $4.60, implying a possible rise of around 20% over the next year.

Morgan Stanley thinks that the success achieved by international peers with fixed wireless broadband is a good sign for Telstra. Fixed wireless comes with a higher profit margin than a connection through the NBN (National Broadband Network).

Just before midday on Wednesday the Telstra share price is climbing by 1.16% to $3.92.

The post Is Telstra an ASX 200 share worth owning right now? appeared first on The Motley Fool Australia.

More reading

• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• Analysts rate these ASX 200 dividend shares as buys
• Why has the Telstra share price lagged the ASX 200 over the past week?
• Here are the 3 most traded ASX 200 shares on Friday
• These 3 shares are topping the ASX 200 volume charts on Thursday

Motley Fool contributor Tristan Harrison 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 positions in and has recommended Telstra Corporation Limited. 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 Tabcorp Holdings Limited (ASX: TAH) share price has continued its slide on Wednesday.

In morning trade, the wagering and media and gaming services company’s shares are down a further 7.5% to 97.5 cents.

This means the Tabcorp share price is now down 82% over the last couple of sessions.

What’s going on with the Tabcorp share price?

The weakness in the Tabcorp share price this week has been driven by the demerger of the company’s Lotteries and Keno businesses on Tuesday. These businesses have been spun off and listed separately as The Lottery Corporation Limited (ASX: TLC).

Given that this happened yesterday, investors may be wondering why its shares have continued to slide today.

This weakness appears to have been driven by investors trying to find a fair valuation for the Tabcorp business now that its more attractive Lotteries and Keno businesses have been taken away.

What is new Tabcorp worth?

According to a note out of Credit Suisse, it believes that fair value for the Tabcorp share price is notably higher than where it trades today.

The note reveals that its analysts have slapped an outperform rating and $1.25 price target on the company’s shares.

However, analysts at Macquarie Group Ltd (ASX: MQG) are feeling a little less positive. They have put a neutral rating and $1.00 price target on Tabcorp’s shares.

Macquarie prefers the spun off Lottery Corporation business and has an outperform rating and $5.00 price target on its shares. This is despite the broker acknowledging that demerged shares often underperform initially in Australia.

It commented: “When examining the behavior of stocks post the demerger implementation the child entity typically underperforms the market for the first six months. […] This has been longer and larger in more recent transactions. The short-term underperformance in the child is eventually reversed, with strong longer-term performance.”

The post Tabcorp share price slumps another 7% following demerger appeared first on The Motley Fool Australia.

More reading

• Why Nufarm, Sayona Mining, Tabcorp, and TechnologyOne shares are falling
• Here are the 3 most traded ASX 200 shares on Tuesday
• Here’s what you need to know about the Tabcorp demerger
• The Lottery Corporation share price debuts on the ASX boards
• ASX 200 midday update: Nufarm, Tabcorp and TechnologyOne tumble

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 recommended Macquarie Group Limited. 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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S&P/ASX 200 Index (ASX: XJO) tech shares are off to a poor start in early trade today.

While the ASX 200 is up 0.5% the S&P/ASX All Technology Index (ASX: XTX), which also contains some companies outside of the top 200 by market cap, is going the other way.

At the time of writing the All Tech index is down 2.1%.

Some of the heavier losses among ASX 200 tech shares are being posted by global payments giant, Block Inc (ASX: SQ2). The Block share price is down 5.9% to $108.80. This comes after its US listed shares tumbled 9% yesterday (overnight Aussie time).

Also in the red is accounting software provider Xero Limited (ASX: XRO), down 1.1%.

And WiseTech Global Ltd (ASX: WTC), which provides cloud-based software solutions for the logistics sector, is down 2.9% to $39.98 per share.

So why are tech companies coming under pressure?

What’s happening with the technology sector?

ASX 200 tech shares look to be following the lead of the Nasdaq.

The tech-heavy US index fell 2.4% yesterday, taking its year-to-date losses to 29.8%.

Growth shares the world over have come under pressure in 2022 amid rising interest rates and fears of a recession in the United States, the world’s biggest economy.

Yesterday’s hit to US tech shares was driven by a global social media provider, Snap Inc (NYSE: SNAP). Snap reported that macroeconomic conditions were deteriorating and lowered its profit forecast with its digital advertising revenue likely to come under pressure.

The Snap share price crashed 43% by market close.

Ouch.

The carnage at Snap hit most every big US tech share, with Alphabet (NASDAQ: GOOGL) – or Google if you prefer – dropping 5%.

And now ASX 200 tech shares are feeling the headwinds.

How have ASX 200 tech shares done in 2022?

With the RBA and central banks in many other nations lifting their benchmark interest rates for the first time in a decade this year, with more rate hikes flagged, growth stocks like ASX 200 tech shares have largely lost ground.

Year to date the All Tech index is down 32.8%, compared to a loss of 5.3% posted by the ASX 200.

The post What’s happening with ASX 200 tech shares today? appeared first on The Motley Fool Australia.

More reading

• Why Snap stock cratered on Tuesday
• Here’s why ASX 200 tech shares are under pressure on Tuesday
• Snapchat share price dives 30% pulling Nasdaq futures lower
• Do experts think the Xero share price is a buy?
• ASX 200 midday update: Elders and Codan rocket, Incitec Pivot disappoints

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). 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 Galileo Mining Ltd (ASX: GAL) share price isn’t going anywhere on Wednesday.

This comes after the mineral exploration and development company requested a trading halt before market open.

As such, the Galileo Mining share price is currently frozen at 94.5 cents apiece. It’s worth noting that the company’s shares have rocketed by 285% over the past month.

Why are Galileo Mining shares in a trading halt?

The Galileo Mining share price was placed in a trading halt this morning pending an important market announcement.

In the brief description provided, the company revealed it will release the material drill assay results from its Callisto discovery.

The trading halt is expected to be lifted on Friday 27 May or by the release of the company’s announcement – whichever comes earlier.

No doubt, investors will be keeping a close watch on Galileo Mining’s latest update. This will give a clearer understanding of what lies underground at the Callisto discovery of the Norseman Project.

More on the Galileo Mining

Based in Western Australia, Galileo Mining is an explorer and developer of nickel, palladium, copper, and cobalt resources.

The company holds tenements near Norseman with more than 26,000 tonnes of contained cobalt, and 122,000 tonnes of contained nickel.

Earlier this month, management revealed a drill hole returning significant palladium-platinum-gold-copper-nickel mineralisation at the Callisto discovery.

Galileo Mining previously noted it had $8.2 million at the end of the March quarter to fund its exploration programs.

About the Galileo Mining share price

Galileo Mining shares were on a slow and gradual decline over the past 12 months, before shooting up this month.

Positive investor sentiment after the Callisto discovery led the company’s share price to rise sharply in May, enabling the miner to post a gain of 320% in 2022.

Based on today’s price, Galileo Mining presides a market capitalisation of roughly $159 million.

The post The Galileo Mining share price has been on a tear, but now it’s halted. What’s happening? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Galileo Mining share price is up 13% today and 125% this week
• The Galileo Mining share price has rocketed 380% in a week. But this billionaire is still buying up big
• Why is the Galileo Mining share price jumping 42% today?
• Why did the Galileo Mining share price tumble 18% in early trading on Thursday?
• Galileo Mining share price explodes 150% on major discovery

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.

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