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The S&P/ASX 200 Index (ASX: XJO) is having another decent start to the day’s trading this Tuesday. At the time of writing, the ASX 200 is up a reasonable 0.38% to 7,469 points. But one ASX exchange-traded fund (ETF) is doing a whole lot better. That would be the ETFS Battery Tech & Lithium ETF (ASX: ACDC).

This ETF invests in “the energy storage and production megatrend, including companies involved in the supply chain and production for battery technology and lithium mining”.

And it’s doing well today. At the time of writing, ACDC units are currently up a solid 1.53% at $93.40 each. That’s a gain more than triple what the ASX 200 has given out.

So, let’s take a look at why this ETF might be jumping in value today.

What could be driving the ACDC performance today?

According to ETFS, ACDC’s largest underlying holding (as of 30 September) was Chinese electric vehicle and battery manufacturer BYD Co Ltd (OTCM: BYDDF), with a 5% weighting in the ETF.

Its second-largest holding is Pilbara Minerals Ltd (ASX: PLS), with a 4.7% weighting. Its third-largest stock was Livent Corp (NYSE: LTHM), with a 3.9% weighting.

Why is this relevant? Well, because last night (our time), BYD stock was up a healthy 5.38% to US$40.15 a share. Livent Corp shares also had a strong day, rising 2.34% to US$25.80 a share. And today on the ASX boards, Pilbara Minerals shares are presently up a very pleasing 6.7% at the time of writing to $2.23 a share.

So, we have ACDC’s three largest holdings all rallying between 2% and 6.7% over the past 24 hours. This is probably behind why this ETF is performing strongly on the ASX today.

But it hasn’t been all plain sailing for ACDC investors. While this ETF is having a strong day today, it’s still in the red by 0.7% over the past month, and up just 0.4% over the past 6 months.

In contrast, the ASX 200 is up 1.6% over the past month and up more than 6% over the past 6 months. Saying that, ACDC has managed to gain 43% over the past year, while the ASX 200 has only risen 21.34% over the same period.

The ETFS Battery Tech & Lithium ETF charges a management fee of 0.69% per annum.

The post Why is the ETFS Battery Tech & Lithium ETF (ASX:ACDC) rising in value today? appeared first on The Motley Fool Australia.

More reading

• Can you buy a lithium ETF on the ASX today?

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

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The Swoop Holdings Ltd (ASX: SWP) share price is lifting higher on Tuesday after the company announced plans to acquire Sydney-based voice service provider, VoiceHub.

At the time of writing, the Swoop share price is up 3.59% to $2.02.

Swoop expands into voice services

VoiceHub offers a combination of traditional voice communication inbound services as well as more sophisticated products such as virtual numbers, SMS messaging solutions and Advanced Intelligent Networking. The business operates across both Australia and New Zealand.

According to the announcement, VoiceHub has invested significantly in upgrading its operations and automation technology. Swoop believes this provides a “strong springboard” for continued growth in this space.

The acquisition will cost $6 million, comprised of $4 million in cash and $2 million in Swoop shares.

The purchase price represents a 4 times multiple of VoiceHub’s FY21 normalised earnings before interest, taxes, depreciation, and amortisation (EBITDA).

VoiceHub is entitled to an earnout of up to a maximum of $2.5 million based on its FY22 EBITDA.

The transaction is expected to be complete on 31 October subject to conditions including obtaining consent to change ownership and VoiceHub employees entering into new employment agreements.

Management commentary

Swoop CEO Alex West commented on the acquisition, saying:

Acquiring VoiceHub’s network provides another opportunity for Swoop to further expand the range of services we can offer across our growing client base in Australia.

Swoop share price snapshot

The Swoop share price has almost surged fourfold since its 50 cents initial public offering (IPO) in late May. It closed at $1.25 on its first day of listing, marking a year-to-date return of 58%.

During this time, the company has successfully acquired four acquisitions to expand its regional fixed wireless network.

Swoop completed a $41 million capital raising this month to prop up its balance sheet and provide flexibility in financing future acquisitions.

The post Swoop (ASX:SWP) share price lifts amid acquisition news appeared first on The Motley Fool Australia.

More reading

• Why is the Swoop (ASX:SWP) share price frozen today?
• Here’s why the Swoop (ASX:SWP) share price is up 11% on Wednesday

Motley Fool contributor Kerry Sun 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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Market watchers interested in the Impedimed Limited (ASX: IPD) share price have woken to another frosty session as the company’s stock remains frozen for a second day.

Impedimed’s shares were halted from trade yesterday while the company undergoes a capital raise.

If the company doesn’t announce the results of the capital raise today, its shares are expected to be defrosted tomorrow.

The Impedimed share price is currently frozen at Friday’s closing price of 17 cents.

 Let’s take a closer look at what the medical software company’s been up to lately.

Why is the Impedimed share price frozen?

Right now, the Impedimed share price is undergoing its second trading halt in as many weeks.

The company released its shares from the freezer last Tuesday when it announced the results of a successful trial.

The results were from Imedimed’s PIVIOT clinical trial. They showed the company’s L-Dex technology could help lower the rate of progression of chronic disease in patients with early detection of cancer-related lymphoedema.

Impressively, the Impedimed share price surged 20% on the trial’s results.

So far, the company hasn’t stated how it’s planning to spend its current capital raising.

However, as of 30 June 2021, Impedimed had around $19.7 million of cash in its wallet and no debt.

Additionally, the last time Impedimed underwent a capital raise was more than 18 months ago.

Then, the company raised around $18.2 million through an entitlement offer. Yet, that was short of its $24.9 million goal.

The raised capital was to fund the commercialisation and reimbursement of the company’s lymphoedema application in the United States, the commercialisation of its heart failure application, and the development and commercialisation of a renal failure application.

It would also fund data and software enhancements, clinical trials, and provide general working capital.

The entitlement offer saw institutional investors able to buy 13 new Impedimed shares for every 10 shares already held for 3.75 cents apiece. Participants also got 1 free option for every new share purchased.

The institutional entitlement offer raised around $10 million and saw 266.2 million new shares and an equal amount of new options handed to investors.

The retail component of the entitlement offer boasted the same ratios. It raised around $8.2 million, selling 218.6 million new shares and giving away the same number of new options.  

The post What’s going on with the Impedimed (ASX:IPD) share price? appeared first on The Motley Fool Australia.

More reading

• The Impedimed (ASX:IPD) share price is up 10% on trial success
• Why the Impedimed (ASX:IPD) share price is rocketing 9% today

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 Pilbara Minerals Ltd (ASX: PLS) share price has returned from its trading halt and is zooming higher.

At the time of writing, the lithium miner’s shares are up 8% to $2.26.

This latest gain means the Pilbara Minerals share price is now up 160% since the start of the year.

Why is the Pilbara Minerals share price zooming higher?

Investors have been fighting to buy Pilbara Minerals shares this morning after the release of a major announcement.

According to the release, the company has executed a shareholders agreement with Korean giant POSCO for the formation of an incorporated joint venture.

This joint venture, named POSCO-Pilbara Minerals Lithium Solution, will develop and operate a 43ktpa lithium hydroxide monohydrate (LHM) conversion facility in South Korea. Pilbara Minerals will initially hold an 18% stake in the joint venture, but has opportunities to increase this to 30% in the future.

Management notes that the joint venture is consistent with Pilbara Minerals’ long-term strategy to become a fully integrated lithium raw materials company with a globally diversified customer base.

Conversion Facility

The release explains that the conversion facility will consist of two production trains, each with a 21.5ktpa LHM production capacity. It will leverage POSCO’s leading patented purification technology, which will be licensed on a nonexclusive basis to the joint venture.

Pilbara Minerals will supply 315ktpa of chemical grade spodumene concentrate on commercial terms to the conversion facility. This will be sourced from the company’s existing installed production capacity at the Pilgangoora Project. Product sold under the offtake agreement will be at prevailing market prices for chemical grade spodumene concentrate sold on a CIF basis.

Management stressed that this will not impact the company’s ability to continue to supply product under its existing offtake arrangements with other customers.

The costs

Based on studies undertaken by POSCO, the capital development costs for the conversion facility are currently estimated at a pre-feasibility study level to be between US$600 million to US$650 million dollars.

Though, after allowing for initial working capital and pre-production financing costs, the total joint venture funding requirement is expected to be approximately US$700 to US$750 million. Operating costs of the facility are expected to be largely consistent with industry peers.

Pilbara Minerals’ initial 18% equity participation will be largely funded through the previously announced A$79.6 million five-year convertible bond agreement being provided by POSCO. Funds will be drawn down following the formation of the joint venture and the completion of other conditions precedent.

Pilbara Minerals’ Managing Director and CEO, Ken Brinsden, said: “We are delighted to have executed the Shareholders Agreement with POSCO to jointly own and develop a 43ktpa chemical conversion facility in South Korea which will form an important part of POSCO’s overall supply chain for the lithium raw materials market in South Korea and abroad.”

“This agreement further cements our long-standing relationship with a world-class strategic partner, in the rapidly growing South Korean lithium raw materials market. This joint venture will give Pilbara Minerals significant exposure to one of the world’s most dynamic and fastest growing markets for lithium chemicals. Production is expected to commence from the second half of 2023, which should coincide with burgeoning global lithium chemicals demand.”

“We are very pleased to have the opportunity to partner with a company like POSCO and the supply of spodumene concentrate to the JV chemical plant will also have the benefit of further diversifying our global sales arrangements over time,” he added.

The post Pilbara Minerals (ASX:PLS) share price jumps 8% on POSCO joint venture news appeared first on The Motley Fool Australia.

More reading

• Why ASX lithium shares are surging higher on Tuesday
• ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps
• Why is the Pilbara Minerals (ASX:PLS) share price halted?
• ASX lithium shares higher as spot prices mark new all-time high
• What’s with the Pilbara Minerals (ASX:PLS) share price 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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It’s another bumper day so far for ASX lithium shares. Heavyweights Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS) are among those leading the charge, up 3.6% and 7.2% respectively.

Emerging US-based lithium producer, Piedmont Lithium Inc (ASX: PLL), is surging 10% to a near 3-month high of 88 cents.

Coined as Australia’s next lithium producer, Core Lithium Ltd (ASX: CXO) is up 5.2% to 60 cents, not far off last week’s all-time high of 66 cents. This morning, Core announced that construction has kicked off for its flagship Finniss lithium project. The company said its Finniss project is the”only new Australian company forecast to initiate lithium production in 2022″.

Elsewhere, explorers including Lake Resources N.L. (ASX: LKE), AVZ Minerals Ltd (ASX: AVZ), and Liontown Resources Limited (ASX: LTR), are also catching bids, rallying 7.9%, 7.8%, and 6.7%, respectively.

What’s driving ASX lithium shares?

Lithium ETF hits fresh all-time high overnight

The Global X Lithium & Battery Tech ETF (NYSEARCA: LIT) surged 3.9% overnight to a fresh all-time high of US$91.26. The ETF is up 11.7% in October alone and 47.5% year-to-date.

The Lithium ETF invests in the full lithium cycle, from miners and refiners through to battery production and electric vehicles. Its performance provides a useful gauge as to how the overall sector is performing.

Its top holdings include the world’s largest provider of lithium for electric vehicle batteries, Albemarle, and China’s largest lithium player, Ganfeng Lithium.

The ETF has smaller allocations in ASX lithium shares including Mineral Resources Limited (ASX: MIN), Pilbara Minerals, and Orocobre.

Tesla joins the US$1 trillion club

Shares in Tesla Inc (NASDAQ: TSLA) crossed the $1,000 a share mark for the first time on record. This brought its market capitalisation to an eye-watering US$1 trillion.

The Tesla stock price surged overnight amid news rental car company, Hertz, was planning to buy 100,000 Teslas to add to its existing fleet.

The bullish news and price action for Tesla has likely propped up ASX lithium shares on Tuesday.

The post Why ASX lithium shares are surging higher on Tuesday appeared first on The Motley Fool Australia.

More reading

• Core Lithium (ASX:CXO) share price jumps as project construction begins
• Tesla stock price rally places it in the trillion-dollar club
• Here are the top 10 ASX shares today
• Why Core Lithium, Firefinch, Smartgroup, and Zip shares are falling
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. 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 Neometals Ltd (ASX: NMT) share price is rocketing in early trade, up more than 14.69% to $1.015 cents per share. That’s smashed the all-time closing high of 95 cents reached on 24 September.

Below we take a look at the battery recycling update released to the ASX this morning.

What battery recycling update was announced?

Neometals’ share price is soaring after the company reported its joint venture company Primobius GmbH has completed the commissioning of its lithium-ion battery recycling demonstration plant.

Primobius is jointly owned by Neometals and SMS group GmbH.

According to the release, all leaching, purification, and recovery circuits of the Stage 2 hydrometallurgical refinery were successfully wet commissioned at the German-based demonstration plant.

Neometals’ share price could also be getting a boost from the report that the demonstration plant’s trial on electric vehicle lithium-ion batteries will kick off early in November, as planned. The trial is intended to demonstrate the “safe, efficient, green recycling process to potential feedstock supply and product offtake partners”.

Commenting on the progress, Neometals’ managing director Chris Reed said:

This is another important milestone for Primobius. The demonstration trial is the conclusive phase of our evaluation with SMS and represents the key step in bringing our pipeline of potential plants into commercial reality.

Inbound interest from the global EV supply chain in our efficient, green recycling process is exceptional. This interest coupled with the scalability and deliverability from our partnership with a leading global plant builder in SMS, augurs well for the achievement of our goal to become the leading recycling solution in the Western world.

Neometals share price snapshot

The Neometals share price has been a standout performer over the past 12 months, soaring 418%. To put that into some context, the All Ordinaries Index (ASX: XAO) is up 22% year-on-year.

Over the past month Neometals’ shares have gained 4%.

The post Up 418% in 1-year, why the Neometals (ASX:NMT) share price is surging 14% today appeared first on The Motley Fool Australia.

More reading

• Why ASX lithium shares are surging higher on Tuesday
• Volpara (ASX:VHT) share price pushes higher on record quarterly update
• Suncorp (ASX:SUN) share price wobbles amid natural hazard costs update
• Regis Resources (ASX:RRL) share price drops on quarterly update
• Facebook (NASDAQ:FB) just announced a monster US$50 billion share buyback program

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 Volpara Health Technologies Ltd (ASX: VHT) share price is climbing today following the release of the company’s quarterly report.

At the time of writing, the healthcare technology company’s shares are up 1.17% to $1.295.

How did Volpara perform for Q2 FY22?

According to its release, Volpara advised record sales and cash inflows for the 3 months ending 30 September.

In particular, cash receipts from customers totalled NZ$7.1 million (A$6.79 million), an increase of 11% on the previous quarter. Compared against the prior corresponding period, this metric grew 52% — or 68% in constant currency terms.

Subscription-based receipts continued to accelerate, representing more than NZ$6.9 million (A$6.60 million) for the 3 months. This is a jump of 63% year-on-year, or roughly 74% in constant currency.

Net operating cash outflow came to NZ$3.8 million (A$3.63 million), consistent with Q2 FY21. Some material supplier contract renewals, such as its annual insurance program, kept the costs in line.

Volpara noted that it closed the quarter with cash of NZ$25 million (AS23.91) on hand and no debt.

On the Software-as-a-Service (SaaS) front, annual recurring revenue (ARR) stood at US$20.4 million (A$27.24) million. Contracts were signed across the company’s full product suite as both standalone sales and platform deals. Many existing customers also increased contracts with Volpara whether by adding on products or expanding use of existing products.

The average revenue per user (ARPU) improved to US$1.46 (A$1.95), up 5% on the prior quarter. Its legacy MRS support contracts were heavily weighted towards the lower ARPU ranges, while its subscription-based products weighted more to the higher ARPUs.

Volpara group CEO Dr Ralph Highnam commented:

Q2 is traditionally our weakest quarter for sales, and yet today we’ve shown that we’ve had a record quarter not only for sales but also cash inflows.

…Our job now is to keep that momentum and passion for what we do as we go through the second half of the year, keeping in mind potential winter waves of COVID in the northern hemisphere.

Volpara share price summary

The past 12 months have been a disappointing run for investors, with the company’s shares down almost 11%. When looking at year-to-date, its losses are hovering around 9% over the period.

Based on today’s price, Volpara presides a market capitalisation of roughly $329 million and has approximately 251.3 million shares outstanding.

The post Volpara (ASX:VHT) share price pushes higher on record quarterly update appeared first on The Motley Fool Australia.

More reading

• 2 small cap ASX shares with a lot of potential
• Volpara (ASX:VHT) share price charges higher on Q2 update
• Volpara (ASX:VHT) share price edges lower despite biggest contract win
• 2 ASX tech shares that might be buys in October 2021
• Top ASX shares to buy in October 2021

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 shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. 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 Suncorp Group Ltd (ASX: SUN) share price is edging lower on Tuesday. It appears investors are relatively unfazed by the financial services company’s latest natural hazard update.

At the time of writing, shares in Suncorp are trading slightly lower to $12.15, down 0.37%. As a result, the company is situated 8% away from its 52-week high.

Let’s take a closer look at Suncorp’s latest release.

More than expected

When it comes to being in the business of insurance, it’s important to accurately forecast potential claims to price premiums effectively.

However, mother nature often doesn’t abide by modelling and predictions. This can sometimes lead to insurers being left out of pocket. This is why shareholders of Suncorp pay close attention to natural hazard claims compared to provisions.

Suncorp has informed the market of the latest natural hazard claims figures since 1 July 2021. This update follows a period of wild weather across the east coast of Australia. According to the release, there have been five declared storm events in October alone, putting the Suncorp share price in focus.

Based on preliminary data, lodgement patterns, and historical average claims costs, Suncorp has updated its total estimated natural hazards costs to between $382 million and $492 million. October itself has increased this estimate by between $140 million and $220 million.

Commenting on the company’s response to recent wild weather, Suncorp Group CEO Steve Johnston said:

Our customer support team is on the ground in Coffs Harbour to support our customers affected by the hail
event. Our national footprint means we have been able to respond quickly to this event and ensure our customers
get back on their feet as quickly as possible.

We will continue to work with governments to ensure we can get tradespeople and assessors on the ground and
across borders as necessary.

Furthermore, Suncorp had provisioned $980 million in natural hazard costs for the full year. Based on this information, 39% to 50% of this provision has already been accounted for, only four months into the financial year.

Suncorp share price snapshot

Despite the higher than anticipated natural hazard costs, the Suncorp share price has been performing well. In the past 12 months, the financial services company has gained 40%. Comparatively, Insurance Australia Group Ltd (ASX: IAG) is up 2% year-over-year.

As covered in a previous article, Suncorp has managed to remain profitable during the last 12 months. Meanwhile, IAG suffered a net loss after tax of $427 million in FY21.

On top of that, the Queensland-based financial company raised $350 million in August. This may have quelled investors’ worries of being out of pocket on insurance claims.

The post Suncorp (ASX:SUN) share price wobbles amid natural hazard costs update appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated ASX dividend shares for next week
• Analysts rate these 2 ASX dividend shares as buys
• Why this fund manager is bullish on the Suncorp (ASX:SUN) share price
• The most important catalyst for outperforming ASX shares: fund manager
• The ASX 200 banks may be in danger as half of mortgage-stressed households have “borrowed to the hilt”

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 owns shares of and has recommended Insurance Australia 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

What happened 

Shares of Pinterest (NYSE: PINS) fell on Monday after PayPal (NASDAQ: PYPL) chose not to pursue a business combination.

As of 3:30 p.m. EDT, Pinterest’s stock price was down more than 12%.

So what

PayPal was reportedly in talks to buy Pinterest for as much as $70 per share. The deal would have valued the popular social media platform at roughly $45 billion.

However, those talks apparently proved fruitless. In a statement posted to its investor relations website, PayPal said “it is not pursuing an acquisition of Pinterest at this time.”

Now what

PayPal was believed to be pursuing Pinterest to accelerate its plan to build a “Super App” that would provide a wide array of financial and e-commerce services to its users. But investors questioned the benefits of purchasing a social media platform that has seen its user growth slow in recent quarters.

Moreover, Pinterest’s monthly active users declined by 5%, to 91 million, in its key U.S. market in the second quarter, as people emerged from pandemic-related lockdowns and spent more time offline. The decline stoked concerns among investors that Pinterest’s most profitable market might already be saturated.

Together, these fears helped to push down PayPal’s share price by more than 10% as the rumors of a potential deal intensified. The market’s poor reaction may have caused PayPal’s management to reconsider its plans.

News that the deal is now off drove Pinterest’s shares lower on Monday. PayPal’s stock price, meanwhile, rallied as much as 6.3%. 

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

The post Why Pinterest stock plunged on Monday appeared first on The Motley Fool Australia.

More reading

• Pinterest Q3 earnings: Here’s what to look for
• If Paypal buys Pinterest, what could it mean for Afterpay shares?
• Why Robinhood Should Worry About PayPal’s New Payments App
• Pinterest stock: Buy, sell, or hold ahead of possible buyout?
• Why PayPal investors got nervous on Wednesday

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended PayPal Holdings and Pinterest. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended PayPal Holdings and Pinterest. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Regis Resources Ltd (ASX: RRL) share price is sliding today, currently trading 2.63% down at $2.22.

Regis shares are on the move as the gold mining and production company released its activities update for the quarter ended 30 September 2021.

Here are the key takeouts.

Regis Resources share price slips as gold production slides

Regis outlined several investment takeaways in its quarterly update, including:

• Gold production across the quarter came in at 101,989 ounces, an 11% decrease from the previous quarter
• All-in sustaining cost (AISC) of $1,521 per ounce, up 9.7% quarter on quarter
• Gold sales for the quarter totalling $179 million at an average realised price of $2,178/oz
• Operating cash flow of $94 million from its Duketon and Tropicana interests combined
• Cash and gold bullion of $208 million, down from $235 million in the previous quarter after capital budgeting decisions
• Maintains FY22 guidance of 460,000 to 515,000 ounces, on an AISC of $1,290 to $1,365 per ounce.

What happened this quarter for Regis Resources?

Regis left the quarter weathering the effects of the pandemic. Gold sales for the quarter were just shy of $180 million on an average realised price of $2,178 per ounce, adjusted for hedging.

Regis said it has absorbed the impacts of the pandemic and the government’s responses to curb the virus via lockdowns.

It reported feeling this impact at the staff level with high turnover as well as increasing competition for high-quality replacement candidates.

Aside from this, the company also wound back its gold production by around 11% for the quarter to almost 102,000 ounces.

This came in on an AISC of $1,521 per ounce, roughly 10% higher than the quarter prior.

Drilling beneath the main pit at the company’s “latest growth project”, the Garden Well South mine, revealed further strong mineralisation. This indicates the “potential for establishing a new underground resource and potentially an additional underground production area”.

One other headwind the company faced this quarter surrounds the permit process for the McPhillamys Gold project.

Progress to this point has been at a snail’s pace and is “largely outside of the company’s control”. Although, Regis does anticipate some progress to be made in the first half of FY22 on this front.

Regis also left the quarter with $208 million in cash and bullion – down 23% from last quarter – after a flurry of expenditures including a $77 million capital spend, $22 million in dividend payouts to shareholders, a $21 million income tax provision, $17 million for exploration at McPhillamys and $17 million for other expenses.

What’s next for Regis?

On the back of performance this quarter, Regis maintained its full-year FY22 gold production guidance range of 460,000 to 515,000 ounces.

It forecasts this range on an estimated AISC of $1,290 to $1,365 per ounce and growth capital of $155 million to $165 million.

Progress at the company’s Garden Well South underground mine also continues with the first ore expected in the December quarter and stoping to commence sometime in the three months from June to September FY22.

What did management say?

Speaking on the announcement, Regis Resources managing director Jim Beyer said:

The September quarter was a difficult one with the already planned lower production flagged when we provided guidance for FY22 accompanied with some challenges that were not expected.

Beyer went on to add:

It is clear there are risks of further COVID impacts in both supply chains and personnel availability. The mandating of vaccination shots is viewed by Regis as a critical element of the path out of this period of uncertainty and we are actively supporting and planning for this initiative. We note the mandatory nature of the vaccination requirements in Western Australia may result in further near-term labour availability risks.

The Regis Resources share price has struggled this year to date, having posted a loss of 38% since January 1, extending its losses over the last 12 months to 48%.

The post Regis Resources (ASX:RRL) share price drops on quarterly update appeared first on The Motley Fool Australia.

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The author 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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