Tag: Motley Fool

  • Why this fundie is tipping 120% upside for the Qantas share price

    a young man rests back into his hands behind his head with a wide smile and his eyes closed as he sits with two large suitcases in what looks to be an airport or transit destination.a young man rests back into his hands behind his head with a wide smile and his eyes closed as he sits with two large suitcases in what looks to be an airport or transit destination.

    The Qantas Airways Limited (ASX: QAN) share price is still trading around 15% lower than it was pre-COVID, but this expert thinks that could soon change.

    L1 Capital co-founder, joint managing director, and chief investment officer, Mark Landau recently outlined why he believes stock in the iconic ‘flying kangaroo’ could be worth looking at.

    As of Friday’s close, the Qantas share price is $5.60.

    That’s 12% higher than it was at the start of 2022. And Landau is tipping the stock has more gains to come.

    Let’s take a look at why he thinks the airline’s shares could soon boast a 120% gain.

    Could the Qantas share price reach $12?

    Landau reportedly thinks the Qantas share price could go sky high over the coming years.

    At the time Landau gave his prediction, the Qantas share price was $5.50. That saw it trading on a valuation multiple of around 5.5 times earnings, reported Livewire.

    “But in a normal world, if you assume Qantas trades at the same discount to market that it’s traded on over the 10 years – about a 40% discount to the ASX 200 Industrials,” Landau was quoted as saying.

    The fundie thinks the Qantas share price could rise by nearly 120%, with a major surge to be had over the next year or two. That could see it trading at around $12 a piece.

    “You’ve got really strong demand, strong pricing, and a billion-dollar cost out that management did in the middle of the crisis,” Landau said.

    The last few weeks have been the busiest period for Australia’s airports since the onset of the pandemic.

    Qantas CEO Alan Joyce recently noted that the airline had seen international travel rebound since Australia’s borders reopened. Meanwhile, QantasLink CEO John Gissing said the airline’s offshoot has seen a surge in demand for domestic travel.

    The national airline is also protected from surging oil prices. Qantas has squirrelled away enough oil to dodge the energy commodity’s price rise for now.

    Its oil exposure is 90% hedged until June, according to reporting by The Motley Fool Australia’s Bernd Struben.

    While the airline will eventually be hit by higher oil prices, its competitors will likely be worse off, Landau said.

    The post Why this fundie is tipping 120% upside for the Qantas share price appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Qantas right now?

    Before you consider Qantas, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Qantas wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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    Motley Fool contributor Brooke Cooper 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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  • These were the best performing ASX 200 shares last week

    Man with rocket wings which have flames coming out of them.

    Man with rocket wings which have flames coming out of them.

    It may have been a short one, but it was a very eventful week for the S&P/ASX 200 Index (ASX: XJO) last week. The benchmark index had a number of ups and downs before ultimately finishing the period with a 0.5% weekly decline to 7,435 points.

    Fortunately, not all shares dropped with the market. Here’s why these were the best performers on the ASX 200 last week:

    City Chic Collective Ltd (ASX: CCX)

    The City Chic share price was the best performer on the ASX 200 last week with a 12.4% gain. Investors were buying the plus sized fashion retailer’s shares following the release of its second half trading update. According to the release, as of 24 April, City Chic’s second half sales were up 25% year on year. This builds on its first half sales growth of 46%.

    Nickel Mines Ltd (ASX: NIC)

    The Nickel Mines share price was a strong performer and rose 10.9% over the four days. This was driven by the release of a quarterly update which revealed a number of record metrics. This includes record quarterly EBITDA from operations of US$81.7 million, which is an increase of 18.7% on the December quarter. Nickel Mines’ result was underpinned by a 22.5% quarter on quarter increase in the price of its nickel to US$7,386 per tonne.

    AMP Ltd (ASX: AMP)

    The AMP share price had a positive week and stormed 9.4% higher over the period. Investors were buying the financial services company’s shares after it announced an agreement to sell its international infrastructure equity business to DigitalBridge for up to A$699 million. This follows recent agreements to sell its domestic infrastructure equity and real estate business and its infrastructure debt platform. AMP is planning to return the majority of the proceeds to shareholders.

    Sandfire Resources Ltd (ASX: SFR)

    The Sandfire share price was some way behind with a gain of 5.5% last week. The catalyst for this was the release of the copper producer’s quarterly update. That update revealed strong production, sales, and earnings thanks largely to the transformational acquisition of MATSA. This acquisition, which completed on February 1, contributed operating EBITDA of US$98.6 million during the quarter. This compares to overall EBITDA of US$186.9 million.

    The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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

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

    *Returns as of January 12th 2022

    More reading

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  • The A2 Milk share price plunged 15% in April. What went wrong?

    milk asx share price falling represented by sad child with glass of milk

    milk asx share price falling represented by sad child with glass of milk

    It was a good April for the S&P/ASX 200 Index (ASX: XJO)… until this week. Between 31 March and last Thursday, the ASX 200 managed a rise of 1.2%.

    But after this week’s turbulence, the ASX 200 is now looking at a 1.3% loss for the month. But that’s nothing compared to the A2 Milk Company Ltd (ASX: A2M) share price.

    A2 Milk shares have now fallen by roughly 15.5% over April. But unfortunately, the company wasn’t doing too well before April either. In 2022 so far, A2 Milk shares have lost close to 21% of their value. Over the past year, those losses stretch to almost 40%.

    But let’s focus on April. So what’s gone so wrong for A2 Milk over the past month or so?

    Why has the A2 Milk share price emptied the tank in April?

    Well, this company has been struggling with the same issues for a while now. These include tightening margins on its products, supply chain issues and difficulties with the formerly lucrative Chinese market.

    Investors have known about these issues for a while, but perhaps many were hoping that 2022 would show an improvement in the headwinds facing A2 Milk.

    But the earnings report that was delivered back in February seemed to confirm many of these concerns. A2 reported a nasty 53.3% drop in net profits after tax (NPAT). To make matters worse, management said that it was still facing headwinds in the Chinese markets, not to mention margin pressures.

    So investor sentiment seems to have been cooling ever since this earnings release. Since we haven’t heard much in the way of good news over April, it seems the company is still facing selling pressure. So this could be why A2 Milk shares had such a nasty April. No doubt investors will be hoping for a turnaround next month. But we shall have to wait and see.

    At the current A2 Milk share price, this ASX 200 share has a market capitalisation of $3.25 billion.

    The post The A2 Milk share price plunged 15% in April. What went wrong? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in A2 Milk right now?

    Before you consider A2 Milk, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and A2 Milk wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    Motley Fool contributor Sebastian Bowen has positions in A2 Milk. 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 A2 Milk. 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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  • Here’s how the NAB share price stacked up in April

    Happy couple at Bank of Queensland ATM machine.Happy couple at Bank of Queensland ATM machine.

    The National Australia Bank Ltd. (ASX: NAB) share price continued its upwards trajectory for the majority of the Month of April.

    The banking giant’s shares gained almost 4% until late last week before recording four consecutive days of losses.

    Nonetheless, NAB shares finished trading on Friday 1.37% higher to $32.63. This means that for April, its shares have remained relatively flat.

    Meanwhile, the S&P/ASX 200 Index (ASX: XJO) finished the month up 1.06% at 7,435 points.

    When looking at the other major banks, NAB fared quite well.

    The Commonwealth Bank of Australia (ASX: CBA) share price dropped around 2.1% in April, while Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ) sunk 2.61% and 2.08%, respectively.

    How is the NAB share price valued?

    While the bank didn’t release any market announcements throughout the month, a couple of brokers did weigh in on the NAB share price.

    The team at Citi raised its 12-month price target for the bank’s shares by 8.2% to $33 apiece. It appears that the broker believes that NAB is fully valued at the moment, with investors agreeing alike given the current share price.

    On the other hand, analysts at Morgans had a slightly more bullish take, raising its rating by 11% to $34.

    Based on the bank’s share price, this implies an upside of roughly 5% from where it trades today.

    NAB share price summary

    Despite seesawing in April, the NAB share price has actually risen by 11% in 2022.

    When looking further back, its shares are up 22% over the past 12 months.

    Notably, the bank’s shares reached a 52-week high of $33.75 on 21 April, before giving up their gains.

    NAB commands a market capitalisation of about $103.60 billion, making it the fourth largest company on the ASX.

    The post Here’s how the NAB share price stacked up in April appeared first on The Motley Fool Australia.

    Should you invest $1,000 in NAB right now?

    Before you consider NAB, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and NAB wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    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 recommended Westpac Banking Corporation. 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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  • 3 exciting small cap ASX shares to watch

    A man watches the share price movement closely.

    A man watches the share price movement closely.

    If you’re wanting to invest in the small side of the Australian share market, then the three small caps listed below could be worth a closer look.

    Here’s why these small cap ASX shares could be worth adding to your watchlist:

    Adore Beauty Group Limited (ASX: ABY)

    The first small cap to watch is Adore Beauty. It is a leading online beauty retailer which has been growing strongly over the last few years. This has been driven by a significant lift in customer numbers thanks to the shift to online shopping. The good news for Adore Beauty and investors is that this shift is only really getting started in the beauty category. This gives the company a long runway for growth as the shift continues and more sales move online.

    Alcidion Group Ltd (ASX: ALC)

    Another small cap share to watch is Alcidion. It is a growing informatics solutions company which provides software which has been designed to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. Demand has been strong for its offering, which is supporting strong sales growth. For example, earlier this week Alcidion revealed that year to date FY 2022 new sales had reached $42.9 million. This is up 93% on cumulative new sales at the same time last year.

    Catapult Group International Ltd (ASX: CAT)

    A final small cap to look at is Catapult. It is a global sports analytics company that provides elite sporting organisations and athletes with real time data and analytics to monitor and measure athletes. It has been a positive performer in FY 2022, with the company reporting a 13% increase in revenue to $37.5 million during the first half  This was driven by a sizeable 29% growth in subscription revenue, which reflects Catapult’s strategic shift to a focus on high quality recurring revenue SaaS deals.

    The post 3 exciting small cap ASX shares to watch appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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

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

    *Returns as of January 12th 2022

    More reading

    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 positions in and has recommended Alcidion Group Ltd and Catapult Group International Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has positions in and has recommended Catapult Group International Ltd. The Motley Fool Australia has recommended Adore Beauty Group Limited and Alcidion Group Ltd. 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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  • April hasn’t been kind to the BHP share price. Here’s what went down

    A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.

    The BHP Group Ltd (ASX: BHP) share price has finished off a relatively rangebound month with a sharp drop in the latter part of April.

    The mining giant’s shares have fallen by more than 5% in the past week alone, slipping just 0.02% to close at $48.01 on Friday.

    What happened to BHP shares in April?

    Weak investor sentiment drove the BHP share price lower this month following the company’s third-quarter trading update on 21 April.

    BHP revealed a fall in production across most of its operations due to a variety of issues for each of its commodities. Its shares sank more than 13% in the three days after releasing the result to the market.

    Notably, the miner’s shares hit a 52-week high of $53.72 just two days prior to the announcement.

    In a positive light, the company noted that the proposed merger of its petroleum business with Woodside Petroleum Limited (ASX: WPL) was on track. However, this did little to appease investors, who appeared more interested in the results.

    Despite the current slump, BHP advised that FY22 production guidance for iron ore, metallurgical coal and energy coal remained unchanged. However, total copper and nickel production guidance has been lowered due to COVID-related labour constraints.

    What do the brokers think?

    One broker weighed in on BHP’s shares after the release of its latest performance report.

    Analysts at Macquarie cut its price target by 1.6% to $60.00 for the BHP share price. It appears the broker still remains bullish on the company despite some short-term headwinds.

    UBS had a different tone, raising its outlook by 2.4% to $43.00 late last month. This implies a potential upside of around 11% based on the current share price.

    BHP share price summary

    Regardless of the recent BHP share price weaknesses, investors would be pleased with a 15.6% gain in 2022.

    This is a stark contrast to its shares trading flat over the past 12 months.

    BHP presides a market capitalisation of roughly $242.18 billion, making it the biggest company on the ASX.

    The post April hasn’t been kind to the BHP share price. Here’s what went down appeared first on The Motley Fool Australia.

    Should you invest $1,000 in BHP right now?

    Before you consider BHP, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    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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  • Arafura Resources share price extends gains on Friday, up 100% since March

    a man in a high visibility vest and hard hat holds a thumbs up at a mine site with heavy equipment in the background.a man in a high visibility vest and hard hat holds a thumbs up at a mine site with heavy equipment in the background.

    Shares of Arafura Resources Ltd (ASX: ARU) lifted higher on Friday and finished 6.76% in the green at 39 cents apiece.

    The Arafura share price also finished 6% higher for the week, bringing its total return to 100% since mid-March.

    The company released its quarterly activities and operations update today. Let’s take a look.

    Arafura Resources quarterly update

    Key takeouts from the quarter include:

    • Neodymium and Praseodymium (NdPr) pricing continued to increase to US$152/kg in the quarter
    • Appointment of Societe Generale and National Australia Bank to execute export credit agency driven debt funding strategy
    • Strong cash position of $33.5 million to continue Front-End Engineering Design (FEED)
    • FEED works progressing in line with schedule
    • Award of $30 million grant under Federal Government’s Modern Manufacturing Initiative for Nolans rare earth separation plant

    What else happened this quarter?

    As NdPr prices continued to rise last quarter, this has reinstated a stroke of confidence for the company moving forwards.

    “[P]ricing continued to increase… providing confidence of sustained higher prices and strong project economics,” the company noted.

    At the Nolans NdPr Project, located in the Northern Territory, FEED works continued during the quarter across multiple fronts, Arafura says.

    The company aims to develop the world’s second rare earth separation plant outside of China at the site.

    Works included a range of updates, such as engineering design progress at the hydrometallurgical plant, and additional costs for a strategic pivot at the sulphuric acid plant.

    The company noted in its report:

    A review of the delivery strategy for the Nolans sulphuric acid plant recommended a move away from a modular solution

    The impact of this strategy is an increase in up-front costs from A$1,056m to A$1,150m through the movement of A$93.4 million from sustaining capital expended in years one and two into pre-production capital. The overall impact of this movement on the financial return on the project is minimal.

    Meanwhile, the company also made several preparations to advance on its project(s), with completion dates set around April and/or May 2022.

    To engage the community, it held a roadshow throughout the Northern Territory to provide prospective stakeholders the opportunity to get involved with the project.

    What’s next?

    Arafura says that it is on track to execute its funding strategy, with the Nolans project aligning closely to the Government’s 2022 Critical Minerals strategy.

    It also continued to engage in offtake discussions for “strategic investment with key parties who recognise the value of a de-risked NdPr value chain through long-term offtake and strategic investment in the upstream value chain.”

    At this stage, the company has no certainty as to the timing and likelihood of securing strategic investment – these arrangements will be announced to the ASX if (and when) formal agreements have been concluded.

    Arafura Resources share price snapshot

    The Arafura share price has spiked 113% in the last 12 months after a strong gain this year to date, where its gained 88%.

    During the previous month, it has lifted 16% and sits in the green across all time frames after running hot since March this year.

    The post Arafura Resources share price extends gains on Friday, up 100% since March appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Arafura Resources right now?

    Before you consider Arafura Resources, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Arafura Resources wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    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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  • Here are the top 10 ASX shares today

    top 10 asx shares todaytop 10 asx shares today

    Today, the S&P/ASX 200 Index (ASX: XJO) had another leg up as numerous companies posted their quarterly updates. At the end of the session, the benchmark index finished 1.06% higher at 7,435 points.

    Tech investors inhaled a breath of fresh air as the out of favour sector ended up being the best performing on Friday. Following closely behind were solid showings among the communications and consumer discretionary areas of the market. The refreshing end to the week followed a rebound in US stocks last night.

    However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

    Top 10 ASX shares countdown today

    Looking at the top 200 listed companies, Nickel Mines Ltd (ASX: NIC) was the biggest gainer today. Shares in the nickel miner posted raced 7.35% higher after releasing its annual report to shareholders today. In addition, the company reported a record quarter yesterday. Find out more about Nickel Mines here.

    Sliding in as the second biggest gainer today was Paladin Energy Ltd (ASX: PDN). The uranium explorer added 6.49% to its share price after a negative reaction to its quarterly report yesterday. Uncover the latest Paladin Energy details here.

    Today’s top 10 biggest gains were made in these ASX shares:

    ASX-listed company Share price Price change
    Nickel Mines Ltd (ASX: NIC) $1.315 7.35%
    Paladin Energy Ltd (ASX: PDN) $0.82 6.49%
    Pilbara Minerals Ltd (ASX: PLS) $2.85 5.95%
    Chalice Mining Ltd (ASX: CHN) $6.95 5.78%
    Stanmore Resources Ltd (ASX: SMR) $2.37 5.33%
    GQG Partners Inc (ASX: GQG) $1.45 5.07%
    Magellan Financial Group Ltd (ASX: MFG) $16.31 4.75%
    Challenger Ltd (ASX: CGF) $7.29 4.59%
    Aristocrat Leisure Ltd (ASX: ALL) $33.66 4.21%
    Seek Ltd (ASX: SEK) $28.38 4.15%
    Data as at 4:00pm AEST

    Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

    The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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

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

    *Returns as of January 12th 2022

    More reading

    Motley Fool contributor Mitchell Lawler 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 Challenger Limited and SEEK 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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  • Firefinch share price leaps 16% on Leo Lithium demerger

    woman blowing gold glitterwoman blowing gold glitter

    The Firefinch Ltd (ASX: FFX) share price went skywards today, rising 16.06% to finish the session at $1.12 after the company announced a proposed demerger of Leo Lithium Limited.

    Firefinch is a gold miner and lithium developer in Mali, West Africa. It owns an 80% interest in the
    Morila Gold Mine and 100% of the Goulamina Lithium Project.

    The demerger would result in two independent ASX-listed companies — Firefinch and Leo Lithium, as well as the separation of Firefinch’s gold and lithium projects.

    Goulamina is among the world’s largest spodumene mines. It has large scale, high grade, low impurity orebody. Under the proposed deal, Leo Lithium would own Goulamina and Firefinch would own a 20% stake in Leo Lithium.

    Why break up?

    The rationale behind the demerger is to create “a pure-play lithium developer on the ASX with funding to help accelerate development and growth plans at Goulmamina”, the company says.

    Leo Lithium has lodged a prospectus for an initial public offering (IPO) of its shares. It has also given the ASX a demerger and offer briefing document explaining the effect of the demerger.

    What’s the nitty-gritty?

    Firefinch shareholders will vote on the demerger at the general meeting in Perth on 31 May. If the demerger proceeds, eligible Firefinch shareholders will be entitled to receive one share in Leo Lithium for every 1.4 Firefinch shares held at the demerger record date of 6 June.

    Eligible Firefinch shareholders will also be able to buy Leo Lithium shares at 70 cents per share in a pro-rata priority offer to raise up to $80 million for Leo Lithium to spend developing Goulamina.

    Investors can subscribe for one Leo Lithium share per 10.33 Firefinch shares held. Up to 114 million Leo Lithium shares will be issued under the pro-rata offer. The record date for the pro-rata offer is 5 May.

    Firefinch directors say ‘vote yes’

    Firefinch directors have unanimously recommended that Firefinch shareholders vote yes to the demerger. According to the company, every director intends to participate in the pro-rata offer.

    Firefinch will subscribe for up to $20 million in Leo Lithium shares, which will be in addition to the pro-rata priority offer, to maintain a 20% interest. Firefinch says this reflects “the conviction Firefinch has in Leo Lithium”.

    The pro-rata offer implies a 65% attribution of Firefinch’s market capitalisation to Leo Lithium.

    Firefinch has released a shareholder letter and a prospectus for the demerged Firefinch entity.

    Subject to ASX approval, it is anticipated that Leo Lithium shares will begin trading on 16 June.

    Firefinch share price recap

    The Firefinch share price is up 195% over the past 12 months and almost 22% in the year to date.

    The post Firefinch share price leaps 16% on Leo Lithium demerger appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Firefinch right now?

    Before you consider Firefinch, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Firefinch wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    Motley Fool contributor Bronwyn Allen 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.

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  • These 3 ASX mining shares leapt more than 10% on Friday

    An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted by the gains of ASX mining sharesAn executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted by the gains of ASX mining shares

    The broader market traded in the green on Friday and these ASX mining shares made the most of it.

    As of Friday’s close, the All Ordinaries Index (ASX: XAO) and the S&P/ASX 200 Index (ASX: XJO) were both up 1.1%. Meanwhile, the S&P/ASX 200 Resources Index (ASX: XJR) underperformed, recording a gain of just 0.44%.

    But these ASX miners didn’t let their sector’s poor performance slip them up. They each surged more than 10% in Friday’s trade. Let’s take a look at what boosted them today.

    These ASX mining shares surged more than 10% today

    Firefinch Ltd (ASX: FFX)

    The Firefinch share price lifted to an intraday high of $1.14 today, representing a 17.5% gain.

    It came as the ASX mining company released details on its plan to demerge its lithium assets.

    The prospectus for the new company ­– to be named Leo Lithium – dropped this morning.

    Firefinch shareholders will be granted one Leo Lithium share for every 1.4 Firefinch shares held. They can also choose to participate in a pro-rata offer.

    The demerger scheme will face a shareholder vote next month.

    Lithium Plus Minerals Ltd (ASX: LPM)

    ASX mining newbie Lithium Plus rocketed 13% to an intraday high of $1.04.

    The company listed on the ASX on Tuesday. Amazingly, its share price went 266% higher than its IPO’s offer price of 25 cents over its first three days of trading.

    Lithium Energy Ltd (ASX: LEL)

    The third ASX mining share to take off on Friday is Lithium Energy. Its share price lifted 23.7% to $1.51 at its highest point – a new all-time high.

    There’s been no news from the company today. However, it announced yesterday that it’s been given the governmental green light to start work at its Solaroz Lithium Brine Project.

    The post These 3 ASX mining shares leapt more than 10% on Friday appeared first on The Motley Fool Australia.

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    Motley Fool contributor Brooke Cooper 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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