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The DroneShield Ltd (ASX: DRO) share price is soaring today following the company’s partnership news with Nearmap Ltd (ASX: NEA).

At the time of writing, the defence contractor’s shares are up 4.88% to 21.5 cents. This marks the highest valuation for DroneShield since early September 2021 when the company’s shares hit a 52-week high of 22.5 cents.

What did DroneShield announce?

In its statement, DroneShield advised it has launched an enhanced version of the DroneSentry-C2 command-and-control software with support from Nearmap.

The latter provides geospatial map technology for businesses, enterprises, and government customers across Australia, New Zealand, and North America. This includes city-scale 3D content, artificial intelligence data sets, geospatial tools, and high-resolution aerial imagery.

As the DroneSentry-C2 platform is predominantly based on delivering counter-UAS [unmanned aircraft systems] awareness, DroneShield has incorporated an optional Nearmap mapping upgrade.

Nearmap’s resolution is several times higher than standard satellite imagery, providing increased precision when responding to counter-UAS threats. Its mapping data is regularly updated, ensuring sites reflect the latest geospatial data for operators.

The software comes with a standard mapping solution for customers on a budget, however, a Nearmap mapping upgrade is available. This offers best-in-class mapping data for high-performance environments such as government, intelligence, homeland security, and defence markets.

The optional Nearmap mapping upgrade will be available as an annual subscription for DroneShield customers who have opted in.

DroneShield stated that the latest offer represents an additional revenue stream and is anticipated to boost its financial accounts.

While the number of expected sales is difficult to predict, the company said it will provide guidance when possible.

DroneShield CEO Oleg Vornik commented:

One of DroneShield’s differentiators is that we are both a sensor manufacturer and an integrator.

Providing a streamlined and standardised hardware/software bundle that gives our user community an easy to deploy and run command-and-control software, will be critical, as more fixed and pop-up site users seek to deploy counter-UAS products.

Importantly, the offering is already validated by deployments such as US Air Force and Australian Army, amongst number of other tier 1 end users globally.

DroneShield share price summary

The DroneShield share price has almost recovered from the fallout of COVID-19. After hitting a low of 8.4 cents in March 2020, the company is tracking on an upward trajectory.

In the past year alone, DroneShield shares are up more than 31%.

With a market capitalisation of around $90 million, DroneShield has room to grow and cement itself as a leading defence contractor.

The post DroneShield (ASX:DRO) share price soars 5% on Nearmap news appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy in April 2022
• ‘Rapidly increasing demand’: DroneShield (ASX:DRO) shares jump 5%

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. owns and has recommended DroneShield Ltd. The Motley Fool Australia has recommended DroneShield Ltd. 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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During the first quarter of 2022, the S&P/ASX 200 Index (ASX: XJO) managed to carve out a small gain despite the high level of market volatility. Over the period, the benchmark index rose 0.7% to 7,499.6 points.

One area of the market that thoroughly outperformed the ASX 200 index was the lithium sector. Thanks to sky high prices, a number of lithium stocks recorded very strong gains.

Here’s why these were the best performing lithium stocks on the All Ordinaries during the quarter:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price was the best performing lithium stock during the quarter with a whopping 119% gain. The main catalyst for this was the announcement of a binding agreement with electric vehicle giant Tesla. The two parties have signed an agreement for the supply of 110,000 tonnes of lithium spodumene concentrate across a four-year period from Core’s Finniss Lithium Project near Darwin. In addition, drilling results from the Carlton deposit of the project got investors excited. Management advised that eight of the nine holes intersected spodumene bearing pegmatite mineralisation. It expects this to underpin an upgrade to the mineral resource of the project.

AVZ Minerals Ltd (ASX: AVZ)

The AVZ Minerals share price was some way behind as the next best performing lithium stock. It recorded a quarterly gain of 59.4%. Its shares were given a boost by their addition in the illustrious ASX 200 index. In addition, there were a number of positive developments at its Manono Lithium and Tin Project in the Democratic Republic of the Congo. Investors appear to believe these developments and sky high lithium prices will make the impending final investment decision on the project an easy one for management.

Calidus Resources Ltd (ASX: CAI)

The Calidus Resources share price was on form and raced 52% during the quarter. While Calidus has made progress with its gold operation this year and expects production to commence imminently, it appears to have been its lithium potential that has got investors most excited. In March, Pirra Lithium, which is 50:50 owned by Calidus and Haoma Mining, identified a “substantial lithium-bearing pegmatite with a mapped strike length of more than 1km” in the Eastern Pilbara. Management commented: “It is already clear that we are in the early stages of an exciting lithium discovery with both scale and strong grades.”

Piedmont Lithium Inc (ASX: PLL)

The Piedmont Lithium share price was a strong performer and charged 27% higher over the period. This was driven largely by the release of its 2022 development plans. The lithium stock revealed that it expects to double its US lithium hydroxide production to 60,000 tonnes per year. All in all, the company plans to produce or have offtake rights to an estimated 500,000 tonnes per year of SC6 production in the future. Management believes this leaves the US-based lithium miner well-placed to meet demand for the white metal in North America.

The post These are the best ASX lithium stocks so far in 2022 appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• These were the best performing ASX 200 shares during the first quarter
• These were the best performers on the ASX 200 last week
• 5 ASX mining shares rocking all-time highs on Friday
• These were the best performing ASX 200 shares in March

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Hydrogen shares are often the talk of the ASX, but these five are making headlines for the wrong reasons.

They have officially come in as some of the worst-performing hydrogen stocks of the March quarter.

So, what’s been weighing on these hydrogen-focused companies’ shares lately? Let’s take a look.

Five of the worst-performing ASX hydrogen shares

A quick note: This list only considers hydrogen shares with market capitalisations of more than $50 million.

Sparc Technologies Ltd (ASX: SPN) – down 45.6%

The March quarter was a big one for this ASX hydrogen share. Unfortunately, it wasn’t to the benefit of its share price.

The first news released by Sparc was its activities and cash flow report for the December quarter. Its release saw the company’s share price surge by nearly 15%.

However, that gain – and then some – was stripped as the company exited a trading halt with big news.

And exciting news it was. Sparc announced Fortescue Metals Group Limited (ASX: FMG)’s green energy leg, Fortescue Future Industries (FFI), was buying into Sparc’s ultra-green hydrogen joint venture.

The Sparc share price plummeted 17% on the back of the announcement. The remainder of the quarter was a rollercoaster for the stock.

It gained 7% when it released more details of the hydrogen project and completed the first stage of FFI’s buy-in. But it flopped 10% after the company retracted some previously-given details on the project’s expected production costs and expenditures.

As of the final close of the March quarter, the Sparc share price was 88 cents, down from its starting price of $1.62.

Province Resources Ltd (ASX: PRL) – down 27.5%

Last quarter was also rough on the Province Resources share price.

The company is developing the HyEnergy renewable green hydrogen project in Western Australia.

Province Resources’ poor performance in the quarter came despite no price-sensitive news sending the ASX company’s shares lower.

In fact, the Province Resources stock gained 10.7% when it released its activities and cashflow report for the December quarter.

Additionally, news of a positive scoping study for the HyEnergy Project saw its share price trading flat.

Still, the Province Resources share price slipped from 14.5 cents to 10.5 cents over the three months ended 31 March, making it one of the quarter’s worst-performing ASX hydrogen shares.

Hazer Group Ltd (ASX: HZR) – down 20%

The March quarter was also rough on the Hazer share price.

It tumbled nearly 9% when the company announced a solution to a previously recognised fault in the manufacturing of a crucial part of its commercial demonstration plant.

The fault ultimately resulted in a delay to the plant’s commissioning and an estimated $1 million of extra costs.

The release of the company’s December quarterly update saw its stock dump 2%, while its half-yearly report saw it slip 1%. Over the six months ended 31 December, Hazer’s revenue fell 51%, while its after-tax losses increased 607%.

Fortunately, the Hazer share price gained an impressive 12% on the announcement of a potential new hydrogen project. The company released news of its agreement with two Canadian energy companies to work towards building the project, for which Hazer will supply the technology, engineering, and catalyst.

Sadly, that boost wasn’t enough to get the company’s stock into the green last quarter.

After finishing 2021 trading at $1.15, the Hazer share price was 92 cents at the end of March.

Wesfarmers Ltd (ASX: WES) – down 15%

While not best known for its interests in hydrogen, this ASX giant is technically a hydrogen share.

That’s because it owns Coregas. Coregas has been involved with the Hydrogen Energy Supply Chain project, is working to supply hydrogen to Australia’s transport sector, and manufactures the gas in Port Kembla.

The Wesfarmers share price fell 7% on the release of the company’s half-year results last quarter. The company also completed its acquisition of formerly ASX-listed Australian Pharmaceutical Industries in March.

After ending the December quarter at $59.30, the Wesfarmers share price closed March trading at $50.41.

Pure Hydrogen Corporation CDI (ASX: PH2) – down 13.6%

Finally, last quarter was a rollercoaster for the Pure Hydrogen share price on the ASX.

It started out by flopping nearly 17% after the company was forced to supply more details of its previously announced hydrogen-related deals to the ASX.

However, that slip was recovered when the company announced H2X Global – of which Pure Hydrogen holds a 24% stake – had entered into a joint venture to supply hydrogen-powered vehicles to India.

A few days later, the Pure Hydrogen share price surged again on the back of the company’s activities report for the December quarter.

It also recorded notable gains following deals that will see the company commercialising a process to create turquoise hydrogen and trialling Australia’s first hydrogen-powered garbage truck.

Unfortunately, the Pure Hydrogen share price slipped from 55 cents at the end of 2021 to 47.5 cents at the end of the March quarter.

The post Here are the 5 worst-performing ASX hydrogen shares of the March quarter appeared first on The Motley Fool Australia.

More reading

• These are 2 of the most diversified ASX 200 shares
• Wesfarmers share price in the green amid overhaul news
• 2 ASX 200 dividend shares brokers rate as buys
• What happened to the Wesfarmers share price in March?
• What’s the outlook for the Wesfarmers share price in April?

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 owns and has recommended Wesfarmers 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 0.7% to 7,565 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are charging higher:

AGL Energy Limited (ASX: AGL)

The AGL share price is up over 3% to $8.30. This appears to have been driven by a broker note out of Morgans this morning. According to the note, the broker has upgraded the energy company’s shares to an add rating with an improved price target of $8.83. Morgans made the move in response to improving electricity prices.

Alliance Aviation Services Ltd (ASX: AQZ)

The Alliance Aviation Services share price is up 3% to $3.86. This morning the ACCC revealed that it does not propose to take any further enforcement action in relation to the stake that Qantas Airways Limited (ASX: QAN) has in Alliance. Though, the competition watchdog warned that it will “continue to monitor Qantas’s conduct in the industry in relation to Alliance and may take action at a later time.”

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price is up 3% to $34.01. Investors have been buying the energy producer’s shares following a strong night of trade for oil prices. Speculation that further sanctions could be placed on Russian oil and coal gave oil prices a major boost.

Xero Limited (ASX: XRO)

The Xero share price is up over 4% to $107.77. This follows a strong rise by tech stocks and news of a key new appointment by the cloud-based accounting company. In respect to the latter, Xero has appointed Chris O’Neill to the position of chief growth officer. O’Neill will lead the growth of Xero’s small business platform and strategic development of Xero in the Americas.

The post Why AGL, Alliance Aviation, Woodside, and Xero shares are charging higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: IGO dealt blow, Block’s data breach, Xero jumps
• These were the 5 best performing ASX hydrogen shares of the March quarter
• Xero share price leaps amid new growth push
• What sent ASX mining shares flaming higher in March?
• Carnage in 2022: Are these 2 top ASX 200 tech shares now buys?

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. owns and has recommended Alliance Aviation Services Ltd. and Xero. The Motley Fool Australia owns and has recommended Alliance Aviation Services Ltd. and Xero. 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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There are several ASX lithium shares that brokers like at the moment.

Lithium prices have been charging higher amid strong demand for the battery material.

And it seems demand may not slow down for a while.

Rio Tinto Limited (ASX: RIO) recently completed the acquisition of the Rincon lithium project in Argentina for $825 million. Rio Tinto said:

The market fundamentals for battery-grade lithium carbonate are strong, with lithium demand forecast to grow 25% to 35% per annum over the next decade with a significant supply-demand deficit expected from the second half of this decade.

With that backdrop in mind, which ASX lithium shares do brokers think are opportunities?

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is rated as a buy by the broker Macquarie, with a price target of $4.30. That implies a possible upside of around 15%.

The broker thinks that continuing strength of the lithium price will help Pilbara’s earnings.

The first half of FY22 already showed a significant increase in the profitability of the company, with earnings before interest, tax, depreciation and amortisation (EBITDA) lifting from $3.2 million to $151.1 million.

The above result was achieved with an average selling price of around US$1,250 per dry metric tonne. However, on 23 February 2022, the miner said that since the end of the half-year, the pricing had continued to increase. Price reporting agencies indicate spot spodumene concentrate prices were in the range of between US$3,750 per dry metric tonne to around US$4,500 per dry metric tonne.

The broker also thinks that Pilbara Minerals can benefit from more of the value-added processes for lithium, not just digging it out of the ground.

The ASX lithium share recently updated the market to say that a scoping study supports the potential for the value-added path beyond spodumene concentrate at Pilgangoora in Western Australia.

Mineral Resources Limited (ASX: MIN)

Mineral Resources is another of the lithium miners that Macquarie likes.

Macquarie rates Mineral Resources as a buy, with a price target of $77. That implies a potential upside of more than 30% for the company.

The company says that its two hard rock lithium mines in WA make it one of the world’s largest owners of hard rock lithium units.

It boasts that it is rapidly growing from a junior to medium-sized commodity producer “with a vast pipeline of high-quality lithium development projects and exploration targets across Western Australia”.

Lithium operations are based out of Mt Marion, located in the Goldfields, and Wodgina, in the Pilbara region.

The ASX lithium share says that the Mt Marion mine was initially designed to produce 206,000 tonnes of spodumene concentrate per annum. A current upgrade project is underway to increase production to 450,000 tonnes per annum.

Not only is the company benefiting from the high lithium prices, but the iron ore prices have been climbing in recent weeks as well. According to Commsec, the iron ore price went up another 1.3% to US$162 per tonne over the last day.

The post 2 lithium ASX shares to buy in April 2022: experts appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares to buy in the hottest sector right now: experts
• The Pilbara (ASX:PLS) share price soared 18% in March. Here’s why
• Here are the 3 most heavily traded ASX 200 shares on Monday
• ASX lithium shares set to deliver next positive surprise to investors
• These were the best performers on the ASX 200 last week

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 recommended Macquarie Group 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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The Fortescue Metals Group Ltd (ASX: FMG) share price isn’t flying higher alongside the rising iron price.

Iron ore jumped another 1% overnight to reach US$160 per tonne.

However, the Fortescue share price is down 0.1% at time of writing even as the S&P/ASX 200 Index (ASX: XJO) charges 0.6% higher.

Fortescue shares closed yesterday at $21.70 and are currently trading for $21.69.

What’s happening in the markets?

Iron ore is still a fair way off its July 2021 highs of US$218 per tonne. But the industrial metal has charged higher from the US$120 per tonne it was trading for on 1 January this year.

Part of the price rise is due to the increasing likelihood that China, the world’s biggest importer of iron ore, looks set to get a boost from government spending meant to stimulate the Chinese economy.

Russia’s invasion of Ukraine has also put pressure on iron ore and steel markets. Russia and Ukraine together are responsible for some 4% of the world’s annual iron ore production.

Why isn’t the Fortescue share price responding today?

So, with iron ore prices rising again, why isn’t the Fortescue share price responding today?

Part of that answer lies in the 26% gains Fortescue shares have posted since 15 March, when iron ore was trading for US$145 per tonne.

The other reason the Fortescue share price is lagging today lies with the risk-on moves in the global and local markets that’s seeing investors snapping up high-growth tech shares.

Yesterday, overnight Aussie time, the tech-heavy Nasdaq gained 1.9%.

Down under today, materials are the worst performing sector, with the S&P/ASX 200 Materials Index (ASX: XMJ) down 0.28%. As for ASX tech shares, the S&P/ASX All Technology Index (ASX: XTX) is up 2.7% at time of writing.

Long-term investors shouldn’t be fretting about the slight dip in the Fortescue share price today though. If you’d bought shares five years ago, you’d be sitting on gains of 255%.

The post Iron ore just passed US$160 per tonne. So why is the Fortescue share price slipping? appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for the Fortescue (ASX:FMG) share price in April?
• The Fortescue share price doubled the return of the ASX 200 in March
• The ASX 200 just had its longest winning streak since 2017. What’s doing?
• Fortescue share price jumps 4% higher
• Are these ASX 200 mining shares in trouble?

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 Macquarie Group Ltd (ASX: MQG) share price is in the green today despite ASIC commencing legal proceedings against the company.

Macquarie shares are trading at $207.355 today, a 0.61% gain. For perspective, the S&P/ASX 200 Financials Index (ASX: XFJ) is also up 0.72% at the time of writing.

So why is ASIC taking action against Macquarie?

What is ASIC alleging?

Macquarie is facing a legal challenge from ASIC in the Federal Court. ASIC is alleging “limited monitoring” by Macquarie of transactions made via its bulk transaction system using a fee authority.

The regulator claims the transactions did not pass through a fraud monitoring system or undergo manual checks to confirm the transactions were for fees.

ASIC alleges $2.9 million in unauthorised withdrawals by former financial adviser Ross Andrew Hopkins impacted Macquarie customers. Hopkins has now been convicted. ASIC deputy chair Sarah Court added:

ASIC’s case is not focused on Mr Hopkins’ conduct but rather on alleged multiple failures by Macquarie to take proper steps to monitor, detect and prevent unauthorised transactions.

Macquarie has remediated the clients of Mr Hopkins about $3.5 million on an ex-gratia basis since engagement with ASIC.

In a statement, Macquarie said it notes the Federal Court proceedings filed by ASIC. The company said:

Macquarie has cooperated with ASIC’s investigation into this matter. Macquarie treats the security of its clients’ accounts with the utmost seriousness, and has continued to introduce new controls and processes to respond to the evolving external fraud environment.

ASIC’s court filing notes that this issue arose in relation to 13 clients of an independent financial adviser between 2016 and 2019, who has since pleaded guilty to fraud. Following the independent adviser’s failure to compensate his clients for their losses, Macquarie fully reimbursed the 13 clients. 

In other news, Wavestone Capital principal and portfolio manager Raaz Bhuyan recently predicted Macquarie Group will have a “cracker result” due to gas prices in Europe and the US. He also commended the company’s management team.

Macquarie recently modified its portfolio of ASX shares in response to the Ukraine crisis.

Macquarie share price snapshot

The Macquarie share price has soared 36% in the past year while it is up 0.91% year to date.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 10% in the past year.

Macquarie Group has a market capitalisation of about $79 billion based on its current share price

The post Macquarie share price lifts despite ASIC legal action appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: IGO dealt blow, Block’s data breach, Xero jumps
• ASX 200 banks bounce bank in March. Here are the April forecasts from analysts
• Considering Macquarie shares? Here’s why this expert is predicting a ‘cracker result’
• These were the best performing ASX 200 shares in March
• Top ASX shares to buy in April 2022

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 Bruce Jackson.

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is storming higher. The benchmark index is currently up 0.7% to 7,568 points.

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

IGO’s Western Areas acquisition blow

The IGO Ltd (ASX: IGO) share price is falling today after the planned acquisition of Western Areas Ltd (ASX: WSA) was dealt a major blow. IGO advised that it understands that the independent expert has concluded that the takeover offer is not in the best interests of Western Areas’ shareholders. In light of this, IGO is expecting the Western Areas board to terminate the scheme implementation deed.

Block share price higher despite data breach

The Block Inc (ASX: SQ2) share price is charging higher with the rest of the tech sector on Tuesday. This is despite the payments giant revealing that a former employee downloaded customer data after their employment had ended. The data that was downloaded relates to the Cash App Investing business in the US. No other customer data, such as Afterpay data, was impacted.

Macquarie hit with ASIC proceedings

The Macquarie Group Ltd (ASX: MQG) share price is edging higher today despite ASIC commencing legal proceedings against the investment bank. ASIC alleges “limited monitoring” by Macquarie of transactions made via its bulk transaction system using a fee authority. This allowed former financial adviser Ross Andrew Hopkins to allegedly make $2.9 million in unauthorised withdrawals.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Xero Limited (ASX: XRO) share price with a 4.5% gain. This follows a strong rise by tech stocks and news of a key new appointment by the cloud-based accounting company. Going the other way, the worst performer has been the Lynas Rare Earths Ltd (ASX: LYC) share price with a 5% decline. Investors may have concerns over the impact of a new rare earths facility which has been approved by a rival.

The post ASX 200 (ASX:XJO) midday update: IGO dealt blow, Block’s data breach, Xero jumps appeared first on The Motley Fool Australia.

More reading

• Macquarie share price lifts despite ASIC legal action
• Why is the IGO (ASX:IGO) share price slipping today?
• Why are ASX tech shares having such a stellar day?
• ASX 200 banks bounce bank in March. Here are the April forecasts from analysts
• Xero share price leaps amid new growth push

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. owns and has recommended Block, Inc. and Xero. The Motley Fool Australia owns and has recommended Block, Inc. and Xero. 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 Bruce Jackson.

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Shares in Cobalt Blue Holdings Ltd (ASX: COB) are tumbling today and have fallen more than 5% in the red at the time of writing.

Whilst there’s been nothing sensitive out of the company’s camp today, Cobalt Blue shares have thrust 97% higher in 2022 and are up 79% in the last month alone.

What’s up with the Cobalt Blue share price?

Cobalt Blue shares popped last month after the company released an operations update that detailed its progress at its mining assets.

It mentioned starting works at the Broken Hill Cobalt Project (BHCP) and Pyrite Hill after completing first blasts there.

As reported by The Motley Fool’s Aaron Teboneras at the time, “the underground development will mine between 3,500 to 4,000 tonnes of ore to support 20 weeks of continuous operation of the Demonstration Plant.”

The company’s share price initially took a hit in the days following the announcement, sliding from a high of 87 cents and cooling off to 77 cents.

A sharp spike in the price of cobalt in early March appears to have also inflected positively on the company’s share price. The industrial metal lunged from US$74,000 per tonne to hit US$82,00 a tonne in just two days on 2–4 March, where it has stayed since.

Analysts at Canaccord Genuity are constructive on the stock and rate it as a speculative buy in a note from February.

The firm values Cobalt Blue at 65 cents per share, suggesting it might have to make some revisions, or that Cobalt Blue is overvalued relative to Canaccord’s valuation.

Cobalt Blue share price snapshot

In the last 12 months, the Cobalt Blue share price has soared more than 156% and has outpaced all major benchmarks in that time.

During the past month, it is up 79% after a further 26% gain in the previous week of trade. Today’s selling pressure is at the same volume as the company’s 4-week trading average.

The post Why has the Cobalt Blue (ASX:COB) share price surged 79% in a month? appeared first on The Motley Fool Australia.

More reading

• The US is backing Aussie critical minerals projects, and these ASX mining shares could be set to reap the rewards
• ‘Coming together nicely’: Why the Cobalt Blue (ASX:COB) share price is surging 14%
• Why did the Cobalt Blue (ASX:COB) share price rocket 30% in a week?
• Why is everyone talking about ASX cobalt shares this week?

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 Bank of Queensland Limited (ASX: BOQ) share price is nudging 0.85% higher on Tuesday and is now resting at $8.30.

The BOQ share price is catching bids today on the back of an announcement from the bank before the market opened.

In the last month, shares have spiked around 6% but are down for the last year of trade.

What did BOQ announce?

The company has made several changes in its accounting treatment of various line-items on its financial statements. Alterations have been made amid changes to reporting standards.

Following the ME Bank acquisition, several accounting adjustments must be made to account for the new source of earnings and embedded costs for BOQ’s income statement.

To help shareholders get a clearer picture of the group’s ‘true’ financial performance, “and to
facilitate meaningful comparison with prior periods”, the bank has reconciled its financial statements in a pro forma statement.

The period is for the half-year ended 31 August 2021 (H2 FY21) and the half-year ended 28 February 2021 (H1 FY21).

“[The pro forma statement] has been prepared to reflect the business as it is now structured and as though it was in effect for the full comparative periods,” the company said.

The bank’s accounting treatment of the acquisition itself must also be reviewed, it said.

Accounting changes to impact earnings

In the set of reconciled pro-forma statements, BOQ recognises $429 million in pre-tax earnings, $296 million in cash earnings after tax, and a final $241 million in H2 FY21 statutory net profit after tax (NPAT).

It also recognises $782 million in net interest income in its pro forma result for H2 FY21, after making the accounting adjustments outlined above.

The bank was also made to revise accounting treatment of software-as-a-service (SaaS) items. Previously, Bank of Queensland could capitalise costs on SaaS arrangements by recording these as intangible assets on the balance sheet.

However, recent International Financial Reporting Standards changes have recommended the group revise this policy.

Consequently there’s been an asset shift on the balance sheet, resulting in a write-down of $47 million to intangibles, but a mark-up on prepaid and deferred tax assets of $11 million each respectively.

“This results in a $25m decrease to retained earnings as at 1 September 2021,” the group said in relation to the above.

But the accounting revisions don’t stop there. It still has to revise how it recognises revenue and earnings from the ME Bank acquisition, due to updates on acquisition accounting. The company said:

In the 2021 Annual Report, ME Bank’s net assets were recognised on a provisional assessment of their Fair Value, while BOQ continues to finalise various matters impacting the acquisition accounting entries. As a result of updates to the acquisition accounting for the combination of these businesses, FY21 intangible assets have been reduced by circa $18 million due to the SaaS policy change and other smaller updates. The restated software intangibles balance for FY21 is $382 million.

It remains to be seen the full effect of the accounting changes, and further details will be included in the bank’s H1 FY22 financial results ‘materials’, it said today.

The bank advised it is scheduled to release its 1H22 financial results on Thursday, 14 April.

BOQ share price snapshot

The BOQ share price has struggled this year to date and is up just 2% in that time. In the last 12 months, it has slipped around 4.5% into the red.

The post Why is the Bank of Queensland share price climbing today? appeared first on The Motley Fool Australia.

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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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