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It appears the Vulcan Energy Resources Ltd (ASX: VUL) share price is not getting the attention it might have wanted amid the release of its quarterly activities report.

As we enter the afternoon, the lithium project developer is being valued at $8.37 per share, down 2.3%. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is up 0.99% to 7,332.9 points. Furthermore, the blame cannot be placed on the sector — the materials segment of the market is currently the best performing.

So, let’s take a look at the latest quarter for Vulcan.

Vulcan energy share price wanes amid cash-burning

• Receipts from customers of 2.214 million euros, up from zero
• Commenced pre-fabrication of Direct Lithium Extraction (DLE) demonstration plant
• Exploration license area up 50% to more than 1,000 square kilometres
• Binding lithium hydroxide offtake agreement signed with LG Energy Solutions
• Began trading on the Frankfurt Stocks Exchange
• Finished the quarter with cash and cash equivalents totalling 115.61 million euros

What else happened during the quarter?

The quarter gone by was yet another eventful period for the upcoming lithium aspirant. Importantly, it involved several accomplishments that progress the company’s lithium production ambitions.

During the quarter, Vulcan entered into a memorandum of understanding with chemicals company Nobian. Essentially, the agreement will see the two explore the feasibility of bringing a central lithium plant to life in Frankfurt, Germany.

In another key update, Vulcan is moving closer to having its demo plant up and running. This will serve as a 1:200 scale representation of the company’s commercial plans for its Zero Carbon Lithium Project.

However, the exploratory operations come at a cost. Due to Vulcan not having its core operations cemented yet, the company burnt through 18.94 euros during the quarter. This might be weighing on the Vulcan Energy share price today.

What did management say?

Commenting on the progression of the company, Vulcan managing director Dr. Francis Wedin said:

We are swiftly capitalising on strategic opportunities to ensure timely project development. The recent appointment of Dr Günter Hilken and Mr Mark Skelton complement the existing key skills of our Board, at this critical juncture in our project development. I would like to thank the entire Vulcan team for their unwavering commitment to the Zero Carbon Lithium Project, as we remain focused on delivering the Definitive Feasibility Study (DFS) in the second half of the year, ahead of our targeted phase one commercial lithium production in 2024.

In addition, Dr Wedin highlighted the pleasing numbers from Vulcan’s operational DLE pilot plant. So far, the company has found lithium recovery rates averaging between 94% to 95%.

Vulcan share price snapshot

Despite some ASX-listed lithium plays continuing their upward trajectory this year, the Vulcan share price has had no such luck. In 2022, the project developer has experienced a 22.5% fall in its valuation.

At present, ASX-listed Vulcan boasts a market capitalisation of $1.12 billion.

The post Why is the Vulcan share price lagging the ASX 200 today? appeared first on The Motley Fool Australia.

More reading

• Down 13% in a month, is the Vulcan share price a buying opportunity?
• Analysts name 3 top ASX lithium stocks to buy now
• Why this broker says the Vulcan share price can more than double
• Vulcan share price up on new offtake agreement
• March was a stellar month for the Vulcan Energy (ASX:VUL) share price. Here’s why

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 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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If you’re looking to gain exposure to the banking sector, then National Australia Bank Ltd (ASX: NAB) shares could be worth considering.

That’s the view of one of Australia’s leading brokers, which has just reiterated its bullish view on the bank.

Why NAB shares?

According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating and $34.03 price target on the bank’s shares.

Based on the current NAB share price of $32.04, this implies potential upside of 6.2% for investors over the next 12 months.

But it gets better. Goldman Sachs is forecasting a fully franked dividend yield of ~4.5% in FY 2022. If we add this into the equation, the total potential return stretches to almost 11%.

What did the broker say?

Goldman likes NAB due to its strong position in business banking, cost management initiatives progress, and its balance sheet momentum.

The broker explained:

“Our preference for NAB (Buy, on CL) is premised on:

i) NAB’s position as the largest business bank means we believe it will benefit more from the continued economic recovery (management at the FY21 result saw all segments in its Business & Private Bank exhibiting solid growth without sacrificing margin, and asset quality remains pristine as at 1Q22),

ii) good balance sheet momentum, with NAB highlighting at the 1Q22 update that market share was gained across core lending and deposit products,

iii) NAB’s cost-management initiatives, which seem further progressed relative to most of its peers, have freed up investment spend to be more directed towards customer experience (targeting 50% in FY22 from 39% in FY21) as opposed to infrastructure.”

As for the rest of the big four, Goldman has a buy rating on Australia and New Zealand Banking GrpLtd (ASX: ANZ) shares, a neutral rating on Westpac Banking Corp (ASX: WBC) shares, and a sell rating on Commonwealth Bank of Australia (ASX: CBA) shares.

The post Why NAB shares are this leading broker’s top big four pick appeared first on The Motley Fool Australia.

More reading

• 2 inflation-busting ASX dividend shares that brokers are tipping as buys
• Is the Westpac share price expensive in April?
• Here’s what the 5 biggest companies on the ASX 200 today were worth in 2000
• Why is the NAB share price beating the other ASX 200 banks in April?
• If you’d invested $5,000 in NAB shares just after the COVID crash, here’s what you’d have now

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Bruce Jackson.

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2022 has been a bit of a ‘back to the future’ year for the Meta Platforms Inc (NASDAQ: FB) stock price. Meta, the US company formerly known as Facebook, has seen its share price almost halved over 2022 so far. This morning (our time), the company closed at US$174.95 a share after hitting a new 52-week low of US$169 in last night’s trading. That is the lowest share price Meta has had in front of it since the COVID crash of 2020.

But the company’s after-hours pricing tells a markedly different tale. During after-market trading, Meta shares ended up closing substantially higher at US$207.09 a share. That’s a good 18.37% above its closing price.

So what could have caused such a dramatic re-evaluation of Meta stock from the market?

Well, the company’s earnings report, of course. Meta reported its results for the three months to 31 March 2022 after normal US market trading closed this morning.

Meta stock price jumps on earnings report

In these results, Meta reported an increase in daily active users to 1.96 billion, an increase of 31 million over the quarter and 4% year-over-year. Monthly active users also rose, by 3% to 2.94 billion. In terms of revenue, the company announced revenues of US$27.9 billion, a year-over-year rise of 6.6%. 

But Meta also revealed a rise in total costs and expenses of 31% to US$19.38 billion. This was driven in part by an increase in staff headcount to 77,805, up 29% year-over-year.

Diluted earnings per share (EPS) fell over the quarter. Meta reported EPS of US$2.72 per share, down 18% from US$3.30.

Meta chief financial officer Sheryl Sandberg added the following:

We expect second quarter 2022 total revenue to be in the range of $28-30 billion. This outlook reflects a continuation of the trends impacting revenue growth in the first quarter, including softness in the back half of the first quarter that coincided with the war in Ukraine…

We expect 2022 total expenses to be in the range of $87-92 billion, lowered from our prior outlook of $90-95 billion. We expect 2022 expense growth to be driven primarily by the Family of Apps segment, followed by Reality Labs.

Why did the markets have this reaction?

So it’s clear that investors found a lot to be excited about in this earnings report, judging by the enthusiastic after-hours share price reaction. Here’s some of what eToro analyst Josh Gilbert had to say on Meta’s earnings and the market’s reaction:

It was a mixed quarter for Meta, as the social media giant missed revenue expectations, but saw a return in daily user growth after declining in the previous quarter. It was a better than feared result for Meta’s investors. 

Meta’s daily active users jumped to 1.96 billion, up 31 million from the last quarter and beating expectations of 1.94 billion. This metric has helped ease concerns, at least for now, that Facebook was losing steam and that the platform had ‘peaked’. 

The company’s advertising revenue experienced the slowest growth year-on-year for over a decade at just 6 per cent. This was, in part, thanks to Apple’s iOS changes that have restricted Meta’s ability to offer targeted ads. This is going to be a lingering issue for Meta, as it could potentially cost the company upwards of USD$10 billion in 2022…

At the current Meta stock price, this US tech giant has a market capitalisation of US$474.91 billion. 

The post Why Facebook’s Meta stock is soaring 18% in after-hours trading appeared first on The Motley Fool Australia.

More reading

• Have ASX tech shares finally reached the bottom?
• Where will Meta Platforms be in 5 years?
• Prediction: 5 billion people will be in the Metaverse by 2030

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Meta Platforms, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. 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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The Splitit Ltd (ASX: SPT) share price is launching upwards on Thursday following the release of its latest quarterly results.

The buy now, pay later (BNPL) company that allows consumers to split payments using their existing credit line also held its annual general meeting (AGM) today.

At the time of writing, the Splitit share price is 24 cents, 14.29% higher than its previous close.

Let’s take a closer look at what’s going on with the BNPL provider’s stock on Thursday.

Splitit share price surging as revenue jumps 6%

• US$2.6 million in revenue – up 6% on that of the prior comparable period
• Merchant sales volume of US$101 million – a 23% year-on-year increase
• A 43% increase in 12-month active merchants, reaching 1,300
• A 20% increase in 12-month active shoppers, coming to 327,000

Splitit recorded a strong performance for the 3 months ended 31 March, which followed an outstanding December quarter.

The final quarter of 2021 housed major shopping events like Black Friday, Cyber Monday, and the Christmas trading period.

Thus, when compared to the December quarter, Splitit’s revenue for the March quarter fell 24% and its merchant sales volume dropped 22%.

Meanwhile, the number of active shoppers using the service fell 1% quarter-on-quarter due to the last remaining debit shoppers being removed from the 12-month lookback period.

Year-on-year, its merchant sales volumes increased more than its revenue due to more contributions from shorter dated loans. Its net transaction margins also increased 1.6% year-on-year.

Splitit recorded a cash decrease of $4.2 million last quarter – a 73% improvement on the prior quarter’s. When one-off costs are removed, the company’s net overall cash decrease for the quarter was US$2.2 million – an 86% improvement.

As of the end of the quarter, Splitit had US$25 million of cash, US$78 million of funded merchant receivables, and US$67 million of debt. That left it with a net cash position of US$36 million.

The company’s shareholders also approved a US$150 million Goldman Sachs credit facility at today’s AGM.

What else happened last quarter?

Last quarter, Splitit’s customers used its service for larger purchases such as furniture, sporting equipment, and luxury items.

The company also underwent a cost rationalisation exercise that will see its costs falling from this quarter.

Finally, Splitit appointed its new CEO, Nandan Sheth, in January.

What did management say?

Sheth commented on the news helping to drive the Splitit share price higher today, saying:

[M]y initial weeks as CEO … has reinforced my conviction about why I joined Splitit, and I have also had the opportunity to formulate a new vision for the company in what is a rapidly evolving sector.

Splitit will drive the next generation of BNPL for merchants, issuers, and networks by focusing on becoming the infrastructure layer of BNPL … [it’s] uniquely positioned as it bridges the gap between BNPL and credit cards …

The ability to access customers’ available credit also means we operate an entirely different business model to providers of new debt that are under growing regulatory scrutiny, providing us with a path to scalable, profitable growth.

What’s next?

Splitit’s future is bright, according to the company’s new CEO.

“BNPL has rapidly grown to account for 2% of global eCommerce in 2020 and by 2030 is estimated to reach US$3.3 billion, indicating its permanent role in the everyday lives of customers around the world,” said Sheth.

“In an inflationary environment, affordability tools such as instalment solutions are becoming increasingly important, even for wealthier customers.”

In the near term, Splitit will look to grow its existing partnerships to target verticals with high merchant sales volume opportunities and good product-market fits.

It will also aim to offer white-label ‘instalments as a service’ solutions, focusing on the US market.

Finally, the company is planning to enable card issuers to participate and monetise BNPL at the point of sale and within the shopper’s purchase journey.

Splitit is also in talks with Google USA to expand its current partnership in Japan to the tech giant’s US-based customers.

Splitit share price snapshot

Today’s gains haven’t been enough to boost the Splitit share price into the green.

The BNPL company’s stock is currently 14% lower than it was at the start of 2022. It has also fallen 67% since this time last year.

The post Splitit share price leaps another 14% as CEO ‘formulates a new vision’ appeared first on The Motley Fool Australia.

More reading

• The Splitit share price just popped 30%. What’s with this ASX BNPL share?
• March was a lousy month for ASX BNPL shares. Here’s why

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 positions in and has recommended Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares). 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 Bruce Jackson.

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The Sandfire Resources Ltd (ASX: SFR) share price has been among the best performers on the ASX 200 on Thursday.

In afternoon trade, the copper producer’s shares are up 12% to $5.84 following the release of its quarterly update.

Sandfire share price jumps on strong quarterly update

• Copper production of 28,774 tonnes
• Zinc production of 16,027 tonnes
• Gold production of 6,956 ounces
• C1 cost of US$1.17 per pound
• Quarterly sales revenue of US$343.1 million
• Quarterly earnings before interest, tax, depreciation and amortisation (EBITDA) of US$186.9 million

What happened during the quarter?

For the three months ended 31 March, Sandfire reported sales revenue of US$343.1 million and EBITDA of US$186.9 million. This was underpinned by a significant jump in copper production thanks to the transformational acquisition of MATSA, which it took control of on 1 February. This acquisition contributed operating EBITDA of US$98.6 million during the quarter.

This means the company is on track to achieve its production guidance of 92,000 to 95,000 tonnes of copper.

One slight negative, though not unexpected, was that Sandfire has increased its full year cost guidance. Driven by global inflationary cost pressures, the company has updated its full year C1 costs guidance to US$1.19 per pound. This compares to its previous guidance, which was also increased, of US$1.10 to US$1.20 per pound.

‘Transformational period

Sandfire’s Managing Director and CEO, Karl Simich, was very pleased with the quarter. He commented:

“The March Quarter was a transformational period for Sandfire. The completion of the MATSA acquisition, its successful and rapid integration into our business, and the excellent progress we are making with construction at Motheo, signal the start of an exciting new era of growth for our business.”

We are pleased to confirm the ongoing successful integration of the MATSA Operation, after receiving the keys on 1 February.

MATSA has made a strong initial contribution to the Group’s production, which is in-line with expectations and, combined with another robust performance at DeGrussa, puts us on track to achieve our updated Group production guidance for FY2022.”

And while Simich acknowledges that costs are rising, he highlights that prices are also been driven higher and offsetting this. He explained:

“The pressures of global cost inflation combined with the ongoing consequential impacts of COVID19 transmission, remain significant challenges for the resource sector globally. Sandfire is not immune from these challenges and, as a result, we have increased our C1 unit cost guidance for FY2022.

While cost inflation and rising energy costs in Europe are undeniable challenges, it’s important to remember that these same cost pressures are helping to drive up the prices for the metals we produce – many of which are at multi-year or all-time highs. This means that we are generating very healthy EBITDA cash-flow margins across the expanded business – as reflected in the strong sales revenue, EBITDA and operating cash-flows reported for the Quarter.”

The post Sandfire share price shoots 12% higher on ‘transformational’ quarter appeared first on The Motley Fool Australia.

More reading

• All that glitters isn’t gold: Here are the worst performing ASX mining shares of the quarter
• Leading brokers name 3 ASX shares to sell today

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Shares in Melbana Energy Ltd (ASX: MAY) have crumbled today and now trade deep in the red. The company also released its quarterly update today as well.

At the time of writing, the Melbana Energy share price is fetching 9.7 cents apiece, 14% down from yesterday’s close.

Melbana advances oil programs last quarter

Key takeouts from the company’s release today include:

• Called total depth on its Alameda-1 well – the first of two exploration wells
• Three significant and highly energised oil intervals encountered, each containing moveable hydrocarbons
• AC/P70 permit in the Ashmore and Cartier Islands awarded to Melbana for an initial term of 6 years
• $15 million gross raised for Block 9 Cuba exploration well where Melbana is 30% operator
• $32.095 million in cash and equivalents at the end of the period

What else happend this period for Melbana?

During the three months, the Alameda-1 well encountered three independent intervals of energised moveable hydrocarbons.

The first interval is reported to have at least 48 metres of potential oil and gas pay, per the company.

“During the quarter, the company announced that an independent expert assessed the [interval] to have 2.5 billion barrels of oil in place and prospective resources,” Melbana noted.

Whereas the second interval was found to contain “a net hydrocarbon pay of approximately 100 metres measured depth (mMD)/88 metres total vertical depth (mTVD).”

Melbana was also awarded a petroleum exploration permit AC/P70 during the quarter. It is located on the Ashmore and Cartier Islands and was awarded for a period of 6 years.

Apparently, the AC/P70 permit contains the “undeveloped Vesta-1 oil discovery” previously drilled back in 2005. Whereas the ‘Vesta-2 appraisal well’ – drilled in 2007 – identified a gas cap at the site.

Management commentary

On a separate announcement also released today, regarding the Zapato-1 exploration well, Melbana Energy’s Executive Chairman, Andrew Purcell said:

Our Alameda-1 exploration well has delivered results considerably greater than our predrill expectations. Having found three significant and highly energised intervals of net hydrocarbon pay we were naturally keen to try and get some data on the oil’s composition and the likely performance of the reservoirs as soon as possible, but this will now have to wait for the formal testing program given that management of the high formation pressures made it complicated to repurpose our exploration well into a testing environment.

We’ll all have to be a little more patient, therefore, but gladly accept that the reasons for the challenges we faced in drilling Alameda-1 give us good reason to be optimistic about our future in Cuba. We are now revising our plans for testing in Alameda-1 whilst also preparing for the start of drilling at Zapato-1.

What’s next for Melbana?

The company noted it is updating the predrill resource assessment for two of its discovered intervals. It will release findings once they are received from the independent reserves certifier.

Furthermore, Zapato-1, the company’s second exploration well, is expected to commence drilling in the second half of May 2022.

Melabana Energy share price snapshot

In the last 12 months, the Melbana Energy share price has jumped almost 358% and has surged more than 331% higher this year to date.

Zooming in a bit closer, it has slipped 39% into the red during this past month and is down another 30% in the past week.

The post Here’s why the Melbana Energy share price just tanked 14% appeared first on The Motley Fool Australia.

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• Why Ardent Leisure, GQG, Magellan, and Melbana shares are charging higher
• Why has the Melbana Energy share price exploded 52% in a month?
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Motley Fool contributor Zach Bristow has no positions 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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The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price is racing higher during early afternoon trade on Thursday.

This comes after the biopharmaceutical company provided an update on its pivotal phase 3 clinical trial.

At the time of writing, the Paradigm share price is $1.29, up 4.88%.

What did Paradigm announce?

In today’s statement, Paradigm said the first subjects in the PARA_OA_002 clinical trial have been randomised and dosed in the United States.

The study’s objective is to evaluate the treatment of pentosan polysulfate sodium (PPS) on participants with knee osteoarthritis pain.

PPS, an injectable solution, aims to treat musculoskeletal disorders caused by injury, inflammation, aging, degenerative disease, infection, or genetic predisposition.

The semi-synthetic drug is packaged as Zilosul. It has been shown to reduce pain, improve joint function, and prevent cartilage damaging joints.

Paradigm noted that the first subject randomisation occurred at Northwestern University in Chicago. It was conducted by lead investigator Dr Thomas Schnitzer.

The PARA_OA_002 study is currently enrolling subjects at eight sites in Australia and 21 sites in the US. In addition, locations in the United Kingdom and Europe are expected to be initiated in 2022.

Paradigm will evaluate study participants using WOMAC pain and WOMAC function at multiple time points from day 56 to day 168.

WOMAC is a widely-used health tool that assesses physical function, pain, and stiffness in patients with osteoarthritis. The self-administered instrument gives a score range for each of the three subclasses to indicate the patient’s health status.

Management commentary

Paradigm chief medical officer and interim CEO Dr Donna Skerrett said:

To have our first subjects randomised in the US is an important milestone in the OA clinical program.

The Paradigm clinical team has been working tirelessly to initiate and activate sites throughout the US and we are seeing a large number of subjects entering the screening phase throughout the US.

We look forward to continuing the strong momentum in the phase 3 program and reporting important recruitment milestones to our shareholders.

Paradigm share price snapshot

From November 2021, the Paradigm share price has been on a trending decline.

Paradigm shares hit an all-time low of 92.5 cents last month and have since moved in a sideways channel.

While falling 44% over the past 12 months, the bulk of these losses have come in 2022 — down 32%.

Based on valuation grounds, Paradigm commands a market capitalisation of roughly $286.19 million.

The post Why is the Paradigm share price surging 5% today? appeared first on The Motley Fool Australia.

More reading

• The Paradigm share price is rocketing 22% today. Here’s why
• Why Iress, Krakatoa Resources, Paradigm, and SE Advanced Materials are pushing higher

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 Bruce Jackson.

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The Green Technology Metals Ltd (ASX: GT1) share price is in the green today amid a capital raise and details of a new investor.

Minutes after the market open this morning, the ASX lithium share surged to an all-time record high of $1.25. That’s a 7.75% bump on yesterday’s closing price of $1.16.

Let’s take a look at what this ASX lithium explorer announced to the share market today.

Lithium Americas invests in Green Technology Metals

Green Technology Metals is conducting a share placement in two stages to raise about $55 million.

The company said it has received firm commitments for a two-tranche placement of 52.4 million new shares at $1.05 each. This is a 9.1% discount on the stock’s last closing price before yesterday’s trading halt.

Lithium Americas Corp (NYSE: LAC) is investing US$10 million in Green Technology Metals as part of this placement. Lithium Americas is developing lithium in Argentina and Nevada, US. The company has a market capitalisation of about US$3.4 billion.

Commenting on the news, Green Technology Metals CEO Luke Cox said:

We are delighted to have secured such a strong spread of new and existing investors to this transformational equity raising.

The endorsement of leading lithium company, Lithium Americas, also reinforces our positive view on the prospectivity of our assets.

Green Technology Metals will use the funds from this capital raise for exploring and developing lithium assets in Ontario, Canada. This includes completing a feasibility study for the Seymour Lithium Mine project.

Recapping the growth of this ASX lithium share

The Green Technology Metals share price has surged 81% in the year to date and 205% in the past year. In comparison, S&P/ASX All Ordinaries Index (ASX: XAO) has fallen 3.8% in the year to date and gained 4% over the past 12 months.

Green Technology Metals has a market capitalisation of about $232.78 million.

The post Green Technology Metals share price lifts on Lithium Americas investment appeared first on The Motley Fool Australia.

More reading

• Why is the Green Technology Metals share price on ice today?
• Guess which ASX lithium share has leapt 30% in a month to trade at all-time highs?

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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Shares in Newcrest Mining Ltd (ASX: NCM) are tracking lower today and now trade at $26.62 apiece, a 1.33% loss on the day. Meanwhile, spot gold is now fetching US$1,884 per ounce after trading down the past few sessions.

Newcrest also released its quarterly earnings update today, reporting a “stronger performance in the March 2022 quarter”.

Newcrest grows portfolio, updates guidance

Key takeouts from the company’s report today include:

• Gold production of 480 thousand ounces (koz) and copper production of 31kt
• All-In Sustaining Cost (AISC) of $1,008 per ounce, a 10% drop for the period
• AISC margin of $809/oz
• Cadia PC1-2, Red Chris Block Cave and Havieron Stage 1 Feasibility Studies on track
• Addition of a Tier 1 mine in a world class jurisdiction to Newcrest’s unrivalled asset portfolio
• Strong drilling results at Red Chris and Havieron continue to expand the higher grade footprint

What else happened this period for Newcrest?

For the quarter, gold production was 10% higher than the same time last year. Newcrest says this was driven by three main factors: higher mill throughput at Cadia; the addition of production from Brucejack; and improved gold head grade and recovery at Lihir.

Throughout the quarter Newcrest saw gold production of 480koz and copper production of 31kt. This was realised on a lower AISC compared to last year and an AISC margin of $809/oz.

“Newcrest’s AISC for the March 2022 quarter of $1,008/oz2 was 10% lower than the prior period, reflecting a higher realised copper price, higher gold and copper sales volumes, lower sustaining capital expenditure and the benefit of a weakening Australian dollar against the US dollar on Australian dollar denominated operating costs,” the company said.

Injury rates were also reported down which the company says is a reflection of its “Safe Hands” intervention program, prioritising the reduction of hand injuries.

Aside from that, Newcrest also advanced on feasibility studies and drilling programs at its Havieron and Red Chris Block Cave sites.

Management commentary

Speaking on the results, Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas said:

Newcrest delivered an excellent operational and safety performance during the quarter, building momentum for a strong finish to the financial year and positioning us well to meet our updated Group FY22 guidance, which reflects the addition of Brucejack and our operating and financial performance to date.

With the Cadia SAG mill motor operating at full capacity and an improved performance at Lihir, gold and copper production increased for the third consecutive quarter, driving the continued decline in our All-In Sustaining Cost. It was also very pleasing to see further reductions in our injury rates and progress made against our sustainability commitments.

What’s next for Newcrest?

The gold giant also updated its projections for the remainder of FY22. This has come on the back of completing the Pretium transaction, it says.

“Higher gold production and a lower All-In Sustaining Cost is now anticipated, with production stripping and major capital expenditure expected to be lower due to COVID-19 related disruptions to projects and reduced activity at Lihir,” the company noted.

Lihir is expected to deliver around the bottom of its original production guidance range (approximately 700koz) for FY22 with a strong fourth quarter anticipated due to lower planned maintenance and improved pumping capacity in Phase 14 which is expected to increase delivery of higher grade ore to the mill.

Newcrest share price snapshot

In the last 12 months, the Newcrest share price has held gains and is less than 1% higher in that time. This year to date it has spiked 9%, although it has levelled off in recent weeks.

The post Newcrest share price slumps despite earnings guidance boost appeared first on The Motley Fool Australia.

More reading

• Can the gold price surge above US$2,000 again this year?
• 5 things to watch on the ASX 200 on Friday
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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 Bruce Jackson.

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The SILK Laser Australia Ltd (ASX: SLA) share price is soaring today following the release of the company’s trading update.

The laser clinic company’s shares are whooshing 9.5% higher at the time of writing to $2.88 apiece. However, in earlier trading, the shares hit an intraday high of $2.95. That’s a 12% jump on yesterday’s closing price of $2.63.

What did SILK Laser announce?

According to its release, SILK Laser is on track to deliver its projected EBITDA target for FY22. Ahead of analysts’ consensus, this has led the SILK Laser share price to roar during today’s session.

For the nine months ending 31 March 2022, the company achieved network cash sales of $116.6 million. This reflected a 91% increase over the prior corresponding period (pcp). It included seven months of sales from its recent acquisitions, Australian Skin Clinics and The Cosmetic Clinic in New Zealand.

In addition, like-for-like cash sales, adjusted for lost trading days due to COVID-19 lockdowns, grew to $101.6 million, up 4%.

Management noted that despite the tough macroeconomic conditions impacting the industry, the business continued to perform strongly.

Notably, a substantial proportion of the above revenue comes from injectable services (45%). This category generates higher transaction values, higher margins, and repeat purchases for SILK Laser.

The company’s franchise partner network continues to expand with three new clinics opening in 2022. It plans to open between 6 to 10 clinics over the next twelve months.

With 121 clinics operating across Australia and New Zealand, SILK Laser is forecasting FY22 EBITDA of at least $20 million.

What did management say?

SILK Laser founder and managing director Martin Perelman commented:

The foundations of the SILK business are strong, especially as we continue to expand our service mix — growing the share of the Injectables category that is especially resilient, even in a tough operating environment.

About the SILK Laser share price

Over the past 12 months, SILK Laser shares have posted a loss of 36%. They are down 32% year to date.

The share price hit an all-time low of $2.62 yesterday.

Based on today’s improved price, SILK Laser presides a market capitalisation of roughly $139.41 million.

The post Here’s why the SILK Laser share price is zipping 12% higher today appeared first on The Motley Fool Australia.

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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 recommended SILK Laser Australia Limited. The Motley Fool Australia has recommended SILK Laser Australia Limited. 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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