Tag: Motley Fool

Key points

• The New Hope share price sinks 3% to $2.28
• CEO calls it quits after spending time away from the top job
• The company has filled the position but is expected to conduct a search for a permanent replacement

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The New Hope Corporation Limited (ASX: NHC) share price has been in the red all day today. This comes after the coal miner revealed the unexpected resignation of its CEO.

At the close of trading, New Hope shares were changing hands at $2.28, down 2.98%.

New Hope CEO departs

In today’s statement to the ASX, New Hope advised that its CEO Reinhold Schmidt has tendered his resignation.

No reason was given as to why Mr Schmidt decided to leave following a short period of personal leave. His resignation is with immediate effect.

The company said chief financial officer Rob Bishop would assume the top job while a search was conducted for a replacement.

New Hope chair Robert Millner commented:

Mr Schmidt led the company during a challenging period for both the business and the industry, and delivered organisational changes that positioned the business to withstand the downturn in commodity prices experienced early FY21 and achieve outstanding returns as markets have improved…

The outlook for the company is positive and the board looks forward to working with Mr Bishop and the leadership team to successfully deliver the company’s purpose and strategy.

About the New Hope share price

The New Hope share price has had its ups and downs over the past 12 months, but has ended up clocking a gain of around 45%.

The company’s shares accelerated from June to mid-October, reaching a 52-week high of $2.70. Although, shortly after, its shares nosedived below the $1.90 mark and have since staged a small recovery.

New Hope has a market capitalisation of roughly $1.87 billion, with approximately 832.36 million shares on its registry.

The post New Hope (ASX:NHC) share price slides following CEO resignation appeared first on The Motley Fool Australia.

More reading

• Could ASX 200 coal shares be in for another boost?
• The 5 best ASX energy shares of 2021 unmasked

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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Today, the S&P/ASX 200 Index (ASX: XJO) took a ride to the downside with a powerful blow to tech shares. At the end of the session, the benchmark index finished 1.08% lower at 7,393.9 points.

Concerns of interest rate hikes caused by high inflation put fear into the market overnight in the United States. Likewise, the Aussie share market has reacted negatively with another broad selldown. Although, unprofitable companies felt the pinch more than others today. On the bright side, the utilities sector managed to finish in the green.

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, TELIX Pharmaceuticals Ltd (ASX: TLX) was the biggest gainer today. Shares in the clinical-stage biotechnology company rose 4.71% without any new announcements circulating. Find out more about TELIX Pharmaceuticals here.

The next biggest gaining ASX share today was Resmed Inc (ASX: RMD). The global healthcare equipment company posted a 3.57% gain despite there being a lack of new information hitting the market today. Uncover the latest Resmed details here.

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

ASX-listed company	Share price	Price change
TELIX Pharmaceuticals Ltd (ASX: TLX)	$8.67	4.71%
Resmed Inc (ASX: RMD)	$34.79	3.57%
Ebos Group Ltd (ASX: EBO)	$38.00	3.04%
AGL Energy Ltd (ASX: AGL)	$7.47	2.75%
Alumina Ltd (ASX: AWC)	$2.05	2.50%
IGO Ltd (ASX: IGO)	$12.72	2.17%
Mineral Resources Ltd (ASX: MIN)	$65.62	2.12%
Virgin Money UK PLC (ASX: VUK)	$3.60	1.98%
Mirvac Group (ASX: MGR)	$2.83	1.80%
Worley Ltd (ASX: WOR)	$11.42	1.60%

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.

More reading

• Why this expert sees an opportunity for ASX property shares in 2022
• Here are the 3 most heavily traded ASX 200 shares this Friday
• Why AnteoTech, BrainChip, City Chic, and ResMed shares are charging higher
• How did the VanEck Morningstar Wide Moat ETF (ASX:MOAT) more than double the ASX 200’s returns in 2021?
• ASX 200 (ASX:XJO) midday update: Qantas cuts capacity, Afterpay hits 52-week low

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 ResMed 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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Key Points

• Investors overlooking ASX travel shares due to Omicron variant impact
• Morgan Stanley bullish on Qantas, saying its robust balance sheet will withstand challenges
• The consensus price target on Qantas is $6.02

Shares in airline operator Qantas Airways Limited (ASX: QAN) inched higher to close at $5 today, up 0.2% at the closing bell.

With international travel yet to normalise, investors are overlooking ASX travel shares like Qantas, especially given renewed economic pressure from the Omicron COVID-19 variant.

As such, the Qantas share price has struggled lately and is down considerably over the past 3 months. It has, however, held stable gains over the past year.

What’s the outlook for Qantas shares?

Despite the short-term noise, broker Morgan Stanley is bullish on the travel stock. It reckons Qantas investors could be in for a positive surprise come next earnings season.

Analysts at the firm note that Qantas’ third quarter tightening of capacity illustrates just how difficult it can be to manage an airline during this pandemic.

However, Morgan Stanley reckons investors should overlook the short-term noise. The broker is confident that “the balance sheet will withstand near-term challenges” and consequently sees “significant upside to earnings under ‘normal’ conditions”.

Morgan Stanley rates the airline a buy and values the company at $7 per share as of yesterday.

Meanwhile, the team at JP Morgan also rates Qantas a buy. They’ve assigned Qantas a $6.30 share price target. The firm remains comfortable on the “prognosis for a domestic aviation recovery” and sees capacity guidance of approximately 109% over 2H FY22 as achievable.

UBS also reckons that any potential threats are already priced into the Qantas share price at its current valuation. In an update last month, the Swiss broker valued Qantas at $6.20 per share and recommended that its clients buy in.

Based on a list of analysts covering Qantas provided by Bloomberg Intelligence, 84.6% rate it as a buy, with a consensus price target of $6.02.

Qantas share price snapshot

The Qantas share price is up 2.46% over the past 12 months to $5 today. Prior to the pandemic crash in February 2020, it was trading at $6.50.

The post Own Qantas (ASX:QAN) shares? Morgan Stanley sees ‘significant upside’ to earnings appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• ASX 200 (ASX:XJO) midday update: Qantas cuts capacity, Afterpay hits 52-week low
• 5 things to watch on the ASX 200 on Friday
• Qantas (ASX:QAN) share price on watch after cutting capacity due to the Omicron outbreak
• Is it a buy in 2022? Leading brokers size up the Qantas (ASX:QAN) share price

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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Key Points

• Pendal shares were thumped on Friday following the release of a funds under management update
• The fund manager recorded a $6.8 billion net outflow
• The Pendal share price is now down almost 50% over the last five years

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It was a day to forget for the Pendal Group Ltd (ASX: PDL) share price on Friday.

The fund manager’s shares were the worst performers on the S&P/ASX 200 Index (ASX: XJO) with a decline of 16% to $5.00.

Things were even worse during intraday trade, with the Pendal share price falling as much as 20% to a 52-week low of $4.73.

Why was the Pendal share price sold off?

Investors were selling down the Pendal share price on Friday following the release of its funds under management (FUM) update for the first quarter of FY 2022.

According to the release, Pendal’s funds under management (FUM) fell 2.5% to $135.7 billion during the quarter. This was despite the company recording a $3.8 billion boost to its FUM from a combination of investment performance, market movements, and distributions.

The $6.8 billion net outflow was driven largely by its European operations, which recorded a sizeable $5.5 billion outflow. This was driven by two notable redemptions from segregated mandates by UK institutional clients during the quarter.

It wasn’t just shareholders that were disappointed with this performance. The company’s CEO, Nick Good, acknowledged that the quarter was a disappointing one. Though, unlike the shareholders that sold today, he appears optimistic that things will improve.

Mr Good commented: “It has undoubtably been a disappointing quarter in terms of our flows. However, we are responding with a clear set of actions and have delivered strong performance fees in line with those recorded in the prior year.”

“Pendal continues to invest in distribution in key target markets, is working closely with fund managers to strengthen investment performance, and has launched new impact and thematic products that are quickly gaining traction and meeting the changing needs of clients. We remain committed to bringing investment excellence to our clients over the full market cycle,” he added.

The Pendal share price is now down by almost 50% over the last five years.

The post Pendal (ASX:PDL) share price ends disastrous day of trade down 16% appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, BWX, Pendal, and Temple & Webster shares are sinking
• ASX 200 (ASX:XJO) midday update: Qantas cuts capacity, Afterpay hits 52-week low
• Here’s why the Pendal (ASX:PDL) share price is tumbling 6% lower today

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

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Key points

• A high inflation print has weakened investor sentiment towards unprofitable shares
• An expert makes the case for why ASX property shares (AREITs) could be a good investment in 2022
• Several AREITs outperformed the benchmark index last year

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It has been a disappointing start to the year for the S&P/ASX 200 Index (ASX: XJO), being down 2.4% year-to-date. Concerns of persistent inflation have applied the brakes on many high-growth names. Instead, investors are turning towards cash generative businesses — some of which could be property shares on the ASX.

Pengana Capital Group fund manager, Amy Pham recently explained why this year could be another good one for Australian real estate investment trusts (AREITs). Despite the sector delivering a phenomenal year for shareholders last year, Pham thinks there are still reasons to back it again in 2022.

Making the case for ASX property shares

Although AREITs may not be as exciting as some of the other companies on the ASX, there could be a case to be made for the sector. However, it is worth knowing that the property sector covers a broad spectrum. This includes real estate across retail, logistics, offices, etc.

According to Pham, the macroeconomic environment for ASX property shares appear to be strong. For instance, REITs are holding healthy balance sheets (on average) and household savings are floating around all-time highs. These factors suggest there could be more room for these investments to run in 2022.

Though, there are risks present for investors to be mindful of. Currently, the Omicron variant is running rampant, which could create further supply chain issues. As central banks have been preaching, these supply-side disruptions are feeding into higher inflation.

On the topic of inflation and its potential effect on REITs, Pham says:

We are of the view that inflation is transitory and will subside as the pandemic is contained. With wage growth only approaching the 3% watermark, we don’t expect inflation to be at the high levels seen in the 1970s and early 1980s. To put things into perspective, interest rates are looking to rise but from a very low base.

Additionally, the fund manager believes ASX property shares can continue to deliver a sustainable income yield of 4%.

For Pham, the opportunities lie in REITs with positive free cash flow, good cash reserves, and solid management. Furthermore, the sector looks set for increased merger and acquisition activity in the eyes of Pham in 2022.

How it played out last year

If the property sector can deliver this year it would be a back-to-back winner. Last year, the sector outperformed the benchmark index. This was thanks to some impressive showings from a few ASX property shares.

As detailed in the chart above, National Storage REIT (ASX: NSR) and Goodman Group (ASX: GMG) provided substantial returns to their shareholders. Not too far behind was Centuria Capital Group (ASX: CNI) with a 34.6% gain in 2021.

Finally, REITs more exposed to the retail sector performed to a lesser extent. For example, Scentre Group (ASX: SCG) dished up a 16.9% return last year. However, this was still an outperformance of the broader market.

The post Why this expert sees an opportunity for ASX property shares in 2022 appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Friday
• How did the VanEck Morningstar Wide Moat ETF (ASX:MOAT) more than double the ASX 200’s returns in 2021?
• ASX 200 (ASX:XJO) midday update: Qantas cuts capacity, Afterpay hits 52-week low
• 5 things to watch on the ASX 200 on Friday
• 2 outstanding ASX 200 blue chip shares to buy

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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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

GUD Holdings Limited (ASX: GUD)

A note out of Citi reveals that its analysts have retained their buy rating and $15.70 price target on this specialist products company’s shares. Citi has been looking at the auto parts industry and picked out GUD as its preferred exposure. It expects the company’s Automotive business to benefit from consumers holding onto their cars for longer. This is expected to underpin demand for after market car parts. GUD owns the Ryco, Wesfil, Goss, Narva and Projecta brands. The GUD share price is fetching $12.13 today.

Qantas Airways Limited (ASX: QAN)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $7.00 price target on this airline operator’s shares. This follows the release of a trading update which revealed that Qantas is cutting its third quarter capacity in response to rising COVID cases. Morgan Stanley suspects these changes could hit its earnings by $340 million and has therefore reduced its FY 2022 underlying earnings estimate to $210 million. The Qantas share price is trading at $5.01 on Friday afternoon.

TPG Telecom Ltd (ASX: TPG)

Analysts at Ord Minnett have upgraded this telco giant’s shares to a buy rating with an improved price target of $7.45. According to the note, the broker believes TPG’s shares are good value given its favourable outlook from a post-COVID recovery. This is expected to be underpinned by subscriber growth and better mobile pricing. It also sees opportunities to unlock value from asset monetisation. The TPG share price is fetching $6.39 today.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Qantas cuts capacity, Afterpay hits 52-week low
• 5 things to watch on the ASX 200 on Friday
• Qantas (ASX:QAN) share price on watch after cutting capacity due to the Omicron outbreak
• This top broker just rated the TPG (ASX:TPG) share price as a buy
• Is it a buy in 2022? Leading brokers size up the Qantas (ASX:QAN) share price

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

• AUSTRAC has expanded its investigation into Star Entertainment
• The financial watchdog was initially looking into alleged money laundering and counter-terrorism financing activity at The Star Sydney
• The probe has now been widened to include other entities within the Star group

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The Star Entertainment Group Ltd (ASX: SGR) share price is trading lower on Friday amid news AUSTRAC has expanded its investigation into the company.

Having begun looking into the casino giant after concerns of money laundering and counter-terrorism financing activity at its Sydney casino arose, the financial crimes watchdog will now be looking at other entities within the Star group.

At the time of writing, the Star share price is $3.56, 1.25% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has currently slipped 0.97%.

Let’s take a closer look at the newly expanded investigation.

Star share price slips amid broadened AUSTRAC probe

Star shares are trading in the red today amid news more of its doors will be opened by AUSTRAC.

AUSTRAC first began investigating the company in June.

It followed a probe in 2019 looking into Star’s management of ‘high risk’ and ‘politically exposed’ customers that uncovered potential serious breaches of money laundering and counter-terrorism financing laws.

The possible non-compliance stemmed from Star’s ongoing customer due diligence and other anti-money laundering and counter-terrorism financing protections.

The Star share price slipped 2% the day the investigation was announced.

The latest update didn’t state which of the company’s entities are now also under investigation. Though, Star’s other casinos include The Star Gold Coast and Treasury Brisbane.

In a non-price sensitive release published this morning, Star noted:

AUSTRAC has advised that it has not made a decision regarding the appropriate regulatory response that it may apply to The Star, including whether or not enforcement action will be taken…

The Star takes its anti-money laundering obligations very seriously and will fully co-operate with AUSTRAC in relation to its requests for information and documents and the investigation.

Star is one of many companies AUSTRAC began looking into in June.

Others include National Australia Bank Ltd. (ASX: NAB), Crown Resorts Ltd (ASX: CWN), and SkyCity Entertainment Group Limited (ASX: SKC).

The post Own Star (ASX:SGR) shares? Here’s the latest on AUSTRAC’s investigation appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday

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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) has had a rather rough end to the trading week so far this Friday. At the time of writing, the ASX 200 has gone backwards by a nasty 0.96%, and is currently sitting at 7,403 points.

But rather than letting that ruin our weekend, let’s take a deeper dive into the ASX 200 shares currently topping the ASX trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume on Friday

Alumina Limited (ASX: AWC)

ASX 200 aluminium producer Alumina is our first share up today. This resources company has had a sizeable 10.07 million of its shares bought and sold thus far this Friday. With no news or announcements out of Alumina today (apart from some routine paperwork), we can probably say that this volume is the result of the healthy bump that the company’s shares have enjoyed. Alumina is presently up a healthy 3.25% at $2.06 a share, likely enough to cause this elevated volume we see. 

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is our next ASX 200 share up this Friday. This lithium producer has watched 10.23 million of its shares swap owners this Friday. Unfortunately, this seems to be the result of a share price fall. Pilbara shares have lost 0.54% as it stands at the time of writing at $3.70 a share. But earlier in the day, the company plumbed depths as low as $3.64 a share. It’s this loss and volatility that is probably behind Pilbara’s presence on this list today.

Telstra Corproation Ltd (ASX: TLS)

Finally, Telstra is currently taking the top spot as the ASX 200’s most traded share of the day thus far. This ASX 200 telco has seen a hefty 20.97 million of its shares trade hands today so far. Again, there isn’t too much in the way of news or announcements out of the company.

As such, we can again likely put this volume down to the company’s share price movements. Like Alumina, Telstra is defying the market today with a present gain of 0.6% at $4.24 a share. However, Telstra also rose a lot higher earlier today, reaching as high as 44.28 a share, a new 52-week high for the telco. This is probably the smoking gun behind the high volume metrics we are witnessing for the company.

The post Here are the 3 most heavily traded ASX 200 shares this Friday appeared first on The Motley Fool Australia.

More reading

• The Telstra (ASX:TLS) share price has already hit multiple 52-week highs this year. What’s happening?
• How did the VanEck Morningstar Wide Moat ETF (ASX:MOAT) more than double the ASX 200’s returns in 2021?
• ASX 200 (ASX:XJO) midday update: Qantas cuts capacity, Afterpay hits 52-week low
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today

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

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Key Points

• BHP shareholders are voting next week to unify its corporate structure
• This will create the biggest company on the Australian share market
• One fund manager believes Australian investors are getting a bad deal

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Next week is a big week for the BHP Group Ltd (ASX: BHP) share price and the Australian share market.

On 20 January, the Big Australian’s shareholders will vote on the unification of its corporate structure under its existing Australian parent company.

The BHP Board believes that unification is in the best interests of shareholders. It notes that it will result in a corporate structure that is simpler and more efficient, reduces duplication, and streamlines BHP’s governance and internal processes.

Furthermore, a unified structure will also improve flexibility for portfolio reshaping to maximise shareholder value over the long-term. This includes facilitating a simpler separation of the Petroleum business.

It will also lead to BHP overtaking Commonwealth Bank of Australia (ASX: CBA) to become the largest company on the ASX with a market capitalisation of ~$230 billion. This is almost $60 billion greater than CBA’s market capitalisation.

This has consequences for the Australian share market and the ASX 200 index. With a market capitalisation of $230 billion, BHP will account for ~10% of the market’s total value. This means that the performance of the BHP share price will have a major impact on the overall performance of the ASX 200.

Opinion is anything but unified

Whether the unification is a good thing or not is a divisive subject in financial markets.

The team at Pendal Group Ltd (ASX: PDL) is not a fan of the move and believe it favours UK investors at the expense of local investors.

Pendal’s Head of Equities, Crispin Murray, commented: “This proposal is transferring value from Australian Limited shareholders to offshore PLC shareholders. This value transfer has been evidenced by the material decline in the Australian multiple of earnings that BHP Ltd trades on.”

“We appreciate that the main reason for the proposal is the greater flexibility it provides to do large M&A deals in the future. However, there are two questions we have around this. Firstly, BHP has had a poor track record in this regard historically. There is a risk that Australian shareholders pay the price for the unified corporate structure and then see more value destruction overtime. Secondly, while a unified corporate structure will make doing scrip-based M&A easier, the decline in multiple potentially negates this,” he added.

In light of this, Mr Murray is urging shareholders to vote against the proposal.

Over at WAM Capital Limited (ASX: WAM), its team think shareholders should approve the plans.

According to the AFR, the fund manager’s Portfolio Manager, Matt Haupt, believes the unification makes sense for everyone in the long run.

He said: “We are very much in favour. I think the [dual-listed company] structure was outdated and unification makes sense in the long run for everyone. A lot of the risk was borne on the Aussie shareholders, so I get why some people have a bit of a bitter taste, but I think in the medium to long term it makes sense and I think it is a great thing to happen.”

This sets things up for an interesting vote next week.

The post The BHP (ASX:BHP) unification vote is next week and not everyone is happy appeared first on The Motley Fool Australia.

More reading

• How does the Newcrest (ASX:NCM) dividend stack up against other ASX 200 miners like BHP?
• CBA (ASX:CBA) is about to lose the mantle of the ASX’s largest company, here’s why
• Why did the BHP (ASX:BHP) share price struggle so much in 2021?
• 5 things to watch on the ASX 200 on Thursday
• Own BHP (ASX:BHP) shares? Here’s the lowdown on the miner’s latest nickel play

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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Key Points

• Essential Metals shares are surging in afternoon trade following an update on its Pioneer Dome lithium project
• The project is “highly prospective” for lithium and is located in WA
• Essential has signed a new drilling contract to complete a drilling program at the site
• Essential Metals shares have surged 149% in the last month.

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Shares in mineral explorer Essential Metals Ltd (ASX: ESS) are surging 19% higher today following a company announcement on its 100%-owned Pioneer Dome lithium project.

According to Essential Metals, the Pioneer Dome Project is located in the core of Western Australia’s lithium corridor in the Eastern Goldfields, approximately 130km south of Kalgoorlie.

Essential Metals shares have surged 149% in the last month.

What did Essential Metals announce?

The company advised that air-core drilling will follow up on “open or unexplained anomalism” generated from the August 2021 drill programme at Dome North, located in the Pioneer Dome project.

Essential Metals says the Pioneer Dome project is “highly prospective for lithium-caesium-tantalum (LCT) mineral systems” and includes the Dome North Lithium Mineral Resource of 11.2 million tonnes at 1.21% lithium.

It has also signed a new drilling contractor to complete the 13-hole diamond drilling (DD) programme that commenced last year. The company says a drill rig is now on-site and is on track to complete the drill programme by mid-February.

Specifically, the DD programme is targeting “near-surface (oxide/transition) mineralisation at both the Cade and Davy deposits to obtain samples for bulk density measurements and for confirmatory metallurgical test work”.

An environmental baseline survey was also completed and the final report is currently pending. The company stated that “no particularly sensitive flora or fauna were identified” in its report.

With respect to financials, capital expenditures and operating costs for a 1.6 mililon tonnes per annum (Mtpa) concentrator plant have “been received” and will be utilised as a part of a scoping study that is planned to commence by mid-2022 (pending drill assays and metallurgical test results).

Management commentary

Speaking on the announcement, Essential Metals Managing Director, Tim Spencer said:

The more we learn about Dome North, the more excited we are about its future. While we advance the Dome North Resource in terms of testing its extent and improving its confidence level by in-fill drilling and further metallurgical test work, we are continuing with high-quality exploration in and around the Resource as well as across our entire 450km2 of Project tenure.

The Essential Metals share price has now soared 295% in the past 12 months and has gained another 107% in the last week of trading alone.

The post 149% in a month: Essential Metals (ASX:ESS) share price glides higher on lithium update appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, BWX, Pendal, and Temple & Webster shares are sinking
• Why AnteoTech, BrainChip, City Chic, and ResMed shares are charging higher
• Here’s why the Pushpay (ASX:PPH) share price could be significantly undervalued
• Here’s why the ClearVue Technologies (ASX:CPV) share price is surging 66% this week
• Shopping for some new ASX ETFs in 2022? Here’s what you need to know

The author 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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