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The Webjet Limited (ASX: WEB) share price is has fallen 4.02% since last Monday. Though, that’s a better performance than one of its ASX travel agent peers.

Flight Centre Travel Group Ltd (ASX: FLT) has recently watched its stock plunge. The company’s share price has flopped 11.69% since this time last week.

Here’s what has seemingly caused these travel agents’ stock to trend differently.

How the wider market moved

The Webjet share price has dipped over the last week. In the same period, Flight Centre shares have plummeted. Meanwhile, the broader market has faired relatively well.

Both the S&P/ASX 200 Index (ASX: XJO) and All Ordinaries Index (ASX: XAO) have gained ~0.9% since last Monday’s close.

Webjet share price outperforms Flight Centre’s

While the Webjet share price ended the last 7 days of trade in the red, Flight Centre shares dipped significantly despite positive noises coming from Flight Centre’s management.

The first catalyst for the Flight Centre share price’s plunge seems to have been its annual general meeting (AGM).

Flight Centre’s AGM took place on Wednesday. The company’s CEO, Graham Turner, said he expects Flight Centre will return to profit during financial year 2022. Additionally, he noted Australian bookings for overseas trips were already rebounding ahead of New South Wales’, and now, Victoria’s, international reopening next month.

Despite the positive sentiments, the Flight Centre share price fell 4.5% on Wednesday.

That dip worsened on Thursday after the company priced $400 million of convertible notes. Its share price fell another 4.8% in response.

Luckily for the Webjet share price, it managed to avoid falling on the back of market announcements last week. In fact, the company hasn’t released any price-sensitive news to the ASX since August.

Right now, the Webjet share price is $6.20, 1.9% lower than Friday’s close.

The post Why has the Webjet (ASX:WEB) share price outperformed Flight Centre (ASX:FLT) lately? appeared first on The Motley Fool Australia.

More reading

• Own Flight Centre (ASX:FLT) shares? The company is still bleeding cash, but it’s not all bad news
• These were the worst performing ASX 200 shares last week
• Qantas (ASX:QAN) share price soars to 52-week high on international travel update
• Why the Super Retail (ASX:SUL) share price is crashing today
• Why A2 Milk, Eroad, Flight Centre, and Webjet shares are sinking

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 shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel 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 Paladin Energy (ASX:PDN) share price is trading in the green on Monday after the company released its first quarter activities report.

At the time of writing, the company’s shares are 2.16% higher to 94.5 cents.

Paladin working through mine restart activities

During the quarter, Paladin Energy continued to work on the “critical-path elements” for its Langer Heinrich Mine restart plan.

Paladin Energy is looking to finalise key milestones including an updated mineral resource and ore reserve estimate, as well as the optimisation of its open-pit mining schedule.

Other key activities include the preparation of long lead contracts and procurement packages and the development of an operational readiness schedule.

Paladin Energy has continued to engage with global nuclear energy utilities companies with the intent of securing uranium term-price contracts with sufficient duration and value to drive the restart of Langer Heinrich.

The quarterly report advised no corporate debt and a cash position of US$40.5 million as at 30 September.

Management commentary

Paladin CEO Ian Purdy said the company was in a financially strong position to execute its mine restart plan and ride the resurgence in uranium prices.

With a strong balance sheet, a robust and well defined Mine Restart Plan and strong project economics, Paladin is exceptionally well positioned to take advantage of a sustained recovery in global uranium pricing.

With a growing focus on global decarbonisation, nuclear energy will continue to play a key role in low-carbon power generation.

We continue to engage with global nuclear energy utilities to secure long term contracts to underpin the restart of Langer Heinrich and ensure the project, when re-started, will deliver significant economic benefit to all of our shareholders.

Paladin Energy share price

The Paladin Energy share price has ballooned 275% year-to-date on the back of skyrocketing uranium prices.

The uranium sector has surged this year amid its potential role in secure, emission-free power generation.

Uranium prices have been propped up through Sprott Asset Management’s Physical Uranium Trust which started buying uranium off the spot market in mid-August, tightening supply.

The post Paladin Energy (ASX:PDN) share price up on work towards mine restart appeared first on The Motley Fool Australia.

More reading

• Here’s why the Paladin Energy (ASX:PDN) share price is climbing 9% today
• Which ASX 300 shares are the biggest winners and losers on Tuesday?
• Why ASX uranium shares are in focus on Tuesday
• Which ASX 300 shares are leading the way on Monday?
• Why ASX uranium shares are rallying on Monday

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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It has been a good start to the week for the Telstra Corporation Ltd (ASX: TLS) share price.

In morning trade, the telco giant’s shares are up 2.5% to $3.82.

This means the Telstra share price is now up 26% since the start of the year.

Why is the Telstra share price rising today?

Investors have been bidding the Telstra share price higher today after it announced a major acquisition.

According to the release, Telstra has teamed up with the Australian Government to acquire the South Pacific-based telco, Digicel Pacific.

The two parties have agreed to pay US$1.6 billion up front and up to an additional US$250 million, subject to Digicel Pacific’s business performance over the next three years. The good news for Telstra, though, is that the majority of this will be covered by the government.

Although Telstra will own and operate the Digicel business, it will only be contributing US$270 million of equity to the US$1.6 billion purchase price.

Another positive, which may be boosting the Telstra share price, is that the deal is expected to be earnings per share accretive. In fact, management estimates that it will be more accretive than a share buyback.

Telstra’s Chief Executive Officer, Andrew Penn, commented: “Telstra provided guidance to the market for FY22 at its recent full year results presentation and it also provided aspirations for FY23. These did not include any allowance for the Digicel Pacific acquisition which will further enhance our outlook depending on the timing of completion.”

Speaking of which, completion is expected to occur in the next 3 to 6 months. Though, it remains subject to Government and Regulatory approvals.

Where will the Digicel business fit in?

The release notes that once the transaction and Telstra’s corporate restructure complete, the Digicel Pacific business will become a fourth subsidiary of the new Telstra holding company.

It will be overseen by a Telstra controlled board, which will also include current owner Denis O’Brien and two independent directors.

“We understand the need to ensure this is a stand-alone business and that Telstra delivers on its commitments as part of the T22 and T25 strategies, as well as our intention to grow in coming years,” said Mr Penn.

Overall, judging by the Telstra share price performance today, the market appears pleased with the plan.

The post Telstra (ASX:TLS) share price higher following Digicel Pacific acquisition news appeared first on The Motley Fool Australia.

More reading

• Telstra (ASX:TLS) share price on watch after announcing US$1.6bn Digicel acquisition
• Which ASX 200 dividend shares have investors been heavily trading this week?
• These 3 ASX 200 shares are topping the volume charts this Friday
• What’s been happening with the Telstra (ASX:TLS) share price this week?
• These 3 ASX 200 shares are topping the volume charts on Thursday

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 owns shares of 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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The Over The Wire Holdings Ltd (ASX: OTW) share price has gone up around 12% in early trading.

Last week, the ASX-listed telecommunications, cloud and IT solutions provider announced that it received a takeover offer from another ASX share.

Takeover offer for Over The Wire

Over The Wire announced on 22 October 2021 that it received an unsolicited, non-binding and indicative offer from Aussie Broadband Ltd (ASX: ABB) to buy the whole business.

The offer from Aussie Broadband is an amount of $5.75 per Over The Wire share.

At this stage, the discussions between the two telcos about the offer are preliminary and incomplete. No agreement has been reached about any transaction. The company also said that there is no guarantee that an agreement or transaction will happen.

More details on the current proposal

The Aussie Broadband takeover offer is $5.75 in total per share, but it’s actually a mix of cash and shares. The ratio of cash and shares is yet to be determined.

A process deed was entered into on 16 October 2021. Aussie Broadband is being provided with the opportunity to do due diligence and negotiate transaction documentation over a period ending on 30 November 2021.

Over The Wire has agreed to certain exclusivity and notification provisions during this period.

What happens next?

Shareholders get the chance to react to this news. As mentioned, the Over The Wire share price is currently up around 12%. However, the board advised shareholders not to take any action about this proposal.

Over The Wire said it would keep shareholders involved of any other developments. It has appointed Macquarie Group Ltd’s (ASX: MQG) Macquarie Capital as financial adviser and McCullough Robertson as legal adviser.

The offer is subject to various conditions, including completing due diligence and entering into a satisfactory formal agreement.

How is the Aussie Broadband share price performing?

This morning, Aussie Broadband shares are flat. However, over the last six months it has gone up around 60%.

In a recent update for the first quarter of FY22, Aussie Broadband said that its overall broadband connections increased 11% quarter on quarter to 396,328. Business broadband connections grew 13% quarter on quarter to 39,993. Year on year, total broadband connections rose 44%.

Total connections rose 13% quarter on quarter to 576,698.

The FY22 first quarter revenue grew 11.3% quarter on quarter to $111.4 million.

Aussie Broadband said that it was expecting broadband net additions of 53,000 to 60,000 for the second quarter, including the migration of 20,000 white label services. The company said it’s typical to see a slow down over the Christmas period.

The broker Ord Minnett currently rates the Aussie Broadband share price as a buy and rated the Over The Wire share price as a buy prior to the takeover offer.

Ord Minnett thinks this deal would be a good move for Aussie Broadband’s expansion of its corporate segment.

The post Over the Wire (ASX:OTW) share price leaps 12% on Monday appeared first on The Motley Fool Australia.

More reading

• Why Aussie Broadband, Core Lithium, Cardno, and Nuix are storming higher
• Aussie Broadband (ASX:ABB) share price surges 5% as acquisition talks confirmed
• Over the Wire (ASX:OTW) share price halted amid possible takeover
• Aussie Broadband (ASX:ABB) share price on watch amid acquisition rumours
• Aussie Broadband (ASX:ABB) share price drops out on trading update and NBN gripe

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. owns shares of and has recommended Aussie Broadband Limited and Over The Wire Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Aussie Broadband Limited and Over The Wire Holdings 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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The Firefinch Ltd (ASX: FFX) share price is deep in negative territory today. This comes after the lithium developer announced its intention to open up a share purchase plan (SPP) to eligible investors.

At the time of writing, Firefinch shares are fetching for 60 cents apiece, down 7.69%. Despite the significant drop, its shares are still up more than 250% for the year.

Share purchase plan details

Investors are selling Firefinch shares after the company opened an invitation to retail shareholders to participate in its SPP.

On 28 June 2021, Firefinch had been unable to undertake a SPP concurrent with the placement conducted earlier that month. This was due to the requirements by ASIC in which one SPP may be offered in a 12-month period. The last SPP performed from Firefinch occurred in late October 2020.

Under the new SPP, investors can apply to buy a parcel of the company’s shares for 58 cents each. The terms offered represent a 10.8% discount to the last closing price of 65 cents a pop on 22 October. This is also a 10.8% discount to the 5-day volume-weighted average price before the SPP was announced.

Investors can apply for a maximum application amount of $30,000. Further details are set to be provided in the offer booklet on 1 November.

Firefinch is seeking to raise a total of $25 million (before costs) through the SPP, issuing 43.1 million shares.

In addition, shareholders who hold their shares at the record date will also be entitled to the planned distribution of Leo Lithium shares. There is no extra cost to shareholders to receive the proposed allocation. It is expected that Leo Lithium will demerge sometime in early 2022.

What are the funds being used for?

The proceeds raised from the SPP will be used towards funding a number of company initiatives. This includes the following:

• Ongoing ramp-up and development activities at the Morila Gold Project to allow commencement of open pit mining.
• Continuation of exploration, resource development and expansion drilling at the Morila Super Pit to build on Firefinch’s recent drilling success.
• The recommencement of drilling at the Goulamina Lithium Project aimed at both converting Inferred resources to Indicated, and
• General working capital to meet overheads, including supporting the planned demerger of Leo, and costs of the SPP.

The closing date for the SPP will be 19 November. The new shares will be issued on 26 November, with the following Monday available for trading.

Firefinch share price snapshot

Over the last 12 months, Firefinch shares have accelerated, posting strong gains of 260%. Year-to-date has been just as impressive, up by almost 250% after investor sentiment heated up in the industry.

Based on today’s price, Firefinch commands a market capitalisation of around $602 million with approximately 926 million shares on hand.

The post Firefinch (ASX:FFX) share price sinks 7% amid $25m cap raise appeared first on The Motley Fool Australia.

More reading

• Firefinch (ASX:FFX) share price lifts on lithium update
• ASX lithium shares mixed on Tuesday as prices surge to all-time highs
• Why ASX lithium shares are booming on Thursday
• ASX lithium shares lift as spot prices hit all-time highs
• Firefinch (ASX:FFX) share price struggles despite lithium project update

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned.

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The S&P/ASX 200 Index (ASX: XJO) could be in for some durable tailwinds in the form of higher oil prices for longer.

That’s according to forecasts from some of the world’s leading global banks.

And, if correct, it would prove to be good news for ASX 200 energy shares like Santos Ltd (ASX: STO), Woodside Petroleum Ltd (ASX: WPL), and Oil Search Ltd (ASX: OSH).

The oil and gas producers have already enjoyed a tremendous rebound since Brent crude dropped below US$22 per barrel in late April 2020 as the world came to a virtual pandemic driven standstill.

But, at today’s multi-year highs of US$85 per barrel, are the ASX 200 energy giants looking at significantly lower prices for their product in the years ahead?

Not according to energy market analysts at Goldman Sachs, Morgan Stanley and BNP Paribas.

Is this time different?

As Bloomberg reports, Goldman is forecasting crude oil prices of US $85 for 2023. BNP Paribas sees crude “at almost” US$80 in 2023. And Morgan Stanley just lifted its long-term forecast by US$10 to US$70 per barrel.

Among the reasons analysts see new supply constrained even as demand continues to grow are the increased attention global governments and investors are paying to climate change, reduced investments in oil and gas assets, and a marked change in the United States political scene. One that’s gone from the decidedly pro-oil presidency under Donald Trump to the Joe Biden administration’s increased attention to cutting carbon emissions.

Noting that current prices have yet to bring sufficient new supplies to market, head of commodities research at Goldman Sachs Jeff Currie said, “My advice to clients is that you want to stay long on oil until you know where that equilibrium price is. We know it’s above these levels because we haven’t had a big uptick in capex and investment.”

While oil demand is forecast to continue growing until 2030, supply growth may not keep up, according to Morgan Stanley. The bank forecasts supply growth could end by 2025, which would keep prices elevated and certainly come as good news to ASX 200 energy shares.

According to Morgan Stanley oil strategist Martijn Rats, “We are running at net-zero type capex levels, whilst at the same time demand is not following the net-zero trajectory. Demand will be above 100 million barrels a day for the rest of the 2020s, but on the supply side we’re not going to produce that with current investment levels.”

As for the shale oil boom that brought prices crashing back to earth after soaring above US$80 per barrel in October 2018?

In other potentially good news for ASX 200 energy shares, that may not be on the horizon this time.

“People have become very comfortable with the idea that shale will be there and we’re not resource constrained. That’s a question mark in my mind,” said head of commodities desk strategy at BNP Paribas David Martin.

Now, not everyone agrees that oil prices will stay higher for longer.

According to Bloomberg, Citigroup says a “prolonged price above US$50 could add 7 million barrels a day of extra supply”.

Its analysts, including Ed Morse, say, “Mid-term, cost indicators keep pointing to a fair-value range between US$40-$55 a barrel.”

How have these ASX 200 energy shares been performing?

Over the past 12 months, the Woodside share price is up 27%, currently at $23.71 per share.

The Santos share price has done even better, up 34% over the past full year.

As for Oil Search, its shares have gained an impressive 50% in 12 months, currently at $4.38 per share.

By comparison, the ASX 200 is up 20% over that same time.

The post Big banks’ forecast could mean extended tailwinds for ASX 200 energy shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• The Woodside (ASX:WPL) share price fell 8% this week. But there is some good news
• What this top broker thinks of the Santos (ASX:STO) share price
• 5 things to watch on the ASX 200 on Friday
• ASX 200 energy shares take a breather, broker sees “lot of upside risk” for oil

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 Zip Co Ltd (ASX: Z1P) share price has been a frustrating experience for many investors, trading sideways for the past six months.

Zip released an encouraging first-quarter update last week, citing a successful rebrand, continued international expansion, and a record performance across revenue and transaction metrics.

The quarterly announcement reads well at face value but struggled to reinvigorate the Zip share price.

Despite the lack of traction, the Australian Financial Review (AFR) reported a number of analysts that remain bullish on Zip’s outlook.

Why analysts are bullish about the Zip share price

Rebrand tailwinds

Zip collaborated with renowned international design agency, Koto, to replace its old colourful logo with a new one.

The company has described its new logo as “a bold purple, designed to stand out in the online and in-store checkout environments of Zip’s merchants”.

“The letter I in Zip is designed to flex and expand, forming a window in the heart of Zip’s logo which allows it to showcase individual merchants and celebrate its customers and its people.”

Logo aside, the company successfully changed its US business from Quadpay to Zip. A brand launch campaign is underway in the US from mid-October to drive brand awareness.

Analysts have pointed to the new brand as a “tailwind for customer numbers in the coming months”, according to the AFR.

“The rebranding campaign is underway from mid-October, and we think Zip US should benefit in the second quarter… further supported by positive reopening trends in the US. The UK region, which had a slow start in the fourth quarter, has also seen good growth, in line with our expectations,” said RBC Capital Markets analyst Chami Ratnapala.

Zip share price set to lead the ASX-listed BNPL sector

Square is expected to complete its acquisition of Afterpay Ltd (ASX: APT) in the first quarter of calendar year 2022, subject to certain closing conditions.

Square has agreed to establish a secondary listing on the ASX to allow investors to trade Square shares via CHESS Depositary Interests (CDIs).

A potential edge for the Zip share price would be its newfound position as the largest BNPL player on the ASX.

As the AFR put it, “investors wanting exposure to a purer buy now, pay later play will be drawn to Zip, which also has a more ambitious global plan compared to Square”.

Cheap valuation

Shaw and Partners analyst Jonathon Higgins said he considers the Zip share price as “the cheapest and also the widest product platform globally”, according to the AFR.

He said Zip shares have a more attractive valuation compared to the copmany’s listed peers, including Afterpay.

The post What do analysts think of the Zip (ASX:Z1P) share price following the rebrand? appeared first on The Motley Fool Australia.

More reading

• Own Afterpay (ASX:APT) shares? Here’s how the big banks are honing in on the BNPL sector
• Could the Afterpay (ASX:APT) share price hit $150 by the end of 2021?
• Afterpay (ASX:APT) and other BNPL shares in focus as RBA looks to rein in regulation
• If Paypal buys Pinterest, what could it mean for Afterpay shares?
• Up 11% in a month: Can the Zip (ASX:Z1P) share price keep rising?

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 AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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 Mineral Resources Limited (ASX: MIN) share price has been a strong performer on Monday morning.

At the time of writing, the mining and mining services provider’s shares are up 4.5% to $41.20.

Why is the Mineral Resources share price charging higher?

Investors have been bidding the Mineral Resources share price higher today following the release of an announcement relating to the Wodgina Lithium Mine in the Pilbara region of Western Australia.

According to the release, the 40% owned MARBL Lithium Joint Venture (MARBL) with lithium giant Albemarle has decided to restart operations at the Wodgina Lithium Mine.

Wodgina, which has been on care and maintenance since November 2019, will be restarted to produce spodumene concentrate during the third quarter of 2022.

It will initially focus on restarting one of Wodgina’s three 250,000tpa processing lines. After which, when market demand is sufficient, additional processing lines may be recommenced to a total of 750,000tpa.

The start-up and initial operating phase at Wodgina is expected to create 200 new full-time jobs.

Management commentary

Mineral Resources’ Managing Director, Chris Ellison, was delighted with the news.

He said: “We are delighted that the MARBL JV has decided to restart Wodgina, a world-class lithium opportunity that MRL developed into a mine with world-class potential. It was the correct decision in late 2019 to place Wodgina on care and maintenance though it never dented our confidence in lithium’s long-term positive demand fundamentals. As we said at the time and repeat today, in Albemarle we have the best partner to deliver maximum and sustainable value from world-class assets like Wodgina.”

Mr Ellison appears very positive on the future, noting the company’s exposure to a number of long-life lithium operations.

“Lithium is one of MRL’s two core commodities, alongside iron ore, and we have worked very hard over the past five years to establish long life operations for both. Wodgina, along with our 50%-owned Mt Marion Lithium Project in WA’s Goldfields and the soon-to-be-completed 40%-owned Kemerton Hydroxide Facility, give MRL a world-class portfolio of highest-quality, long-life lithium assets in a Tier 1 mining jurisdiction,” he added.

The post Why the Mineral Resources (ASX:MIN) share price is charging higher on Monday appeared first on The Motley Fool Australia.

More reading

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• Top broker tips Mineral Resources (ASX:MIN) share price to jump 80%
• Broker names 2 ASX dividend shares to buy
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• These were the worst performing ASX 200 shares last week

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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The Aristocrat Leisure Limited (ASX: ALL) share price is in the green this morning after the company released more details on its $1.3 billion equity raise.

The gaming technology company has divulged additional information on its retail entitlement offer, the final stage of its capital raise.

The funds raised will help fund Aristocrat’s $5 billion acquisition of London-listed Playtech.

At the time of writing, the Aristocrat share price is $47.42, 0.64% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.45% this morning. As is the All Ordinaries Index (ASX: XAO).

Let’s take a closer look at today’s release from Aristocrat.

Aristocrat share price rises on retail offer

The Aristocrat share price is gaining after the company released the offer booklet for its $405 million retail entitlement offer.

The retail entitlement offer will feature the same price and ratio as its recently completed institutional entitlement offer.

Under the pro rata offer, current Aristocrat shareholders will be able to purchase 1 new share in the company for every 20.56 shares they own on Thursday evening.

They’ll be forking out $41.85 for every new share they wish to purchase.

Aristocrat’s equity raise will see around 31 million new securities in the company hitting the market from mid-November. For context, Aristocrat had an average of approximately 637 million shares on issue over the previous financial year.

The $1.3 billion the tech company expects to raise through the retail and institution offers will be pooled with $1.1 billion of Aristocrat’s existing cash. Additionally, the company will also secure a Term Loan B issuance worth around $2.8 billion before the acquisition is complete.  

The company successfully raised $895 million via its institutional entitlement offer last week.

Aristocrat plans to purchase all of Playtech’s issued shares for 680 pence apiece. That represents a 58% premium on Playtech’s closing price as of 15 October, which came to 429 pence.

The Aristocrat share price has gained 3.56% since the acquisition announcement and equity raising plans.

The post Why is the Aristocrat (ASX:ALL) share price gaining on Monday? appeared first on The Motley Fool Australia.

More reading

• Why AMP, Aristocrat, Brainchip, and Healius shares are racing higher
• ASX 200 (ASX:XJO) midday update: Aristocrat hits record high, Flight Centre sinks
• Aristocrat (ASX:ALL) share price jumps 8% to record high after raising $895m
• Top brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Wednesday

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 St Barbara Ltd (ASX: SBM) share price is lower in early trading as the gold exploration and production company released its Q1 FY22 earnings.

At last check, St Barbara shares were changing hands at $1.51 apiece, down 1.95% from the open.

St Barbara share price XXX as Q1 production slumps

St Barbara detailed several investment takeouts in its report, including:

• Group gold production of 67,000 ounces, a 19% decrease from the previous quarter and 8% down year on year
• Leonora gold production up 15% quarter-on-quarter to 51,757 ounces
• Group All-In Sustaining Cost (AISC) 8% lower quarter on quarter at $1,492 per ounce
• Aspiration for a new open pit at Trevor Bore by 2024
• Drilling at the Trotsky prospect at its Simberi operations has identified additional oxide mineralisation
• Syndicated financing agreement AUD$200 million and CAD$100 million extended to July 2025
• Maintains full year gold production guidance in the range of 305,000 to 355,000 ounces.

What did St Barbara get up to in the first quarter?

Overall gold production for St Barbara came in 19% lower than the previous quarter and 8% down compared to the same time last year at 67,000 ounces.

Total gold sold was also lower this quarter with around 57,918 ounces recognised versus 95,535 ounces last quarter and around 66,000 ounces in Q1 last year.

However, the company did manage to secure a higher realised gold price of $2,408/oz on both the previous quarter and the same period in Q1 FY20.

A chunk of this sale price and volume was driven by the company fulfilling “9,000 ounces delivered to call options that matured in the quarter at a strike price of $2,213 per ounce”.

St Barbara also explained much of the drop in production this quarter came from its Simberi operations remaining offline while repairs continued on its deep-sea trailing placement (DSTP) pipeline.

It is expected to return online and into production by the end of the second quarter in FY22.

Whilst it experienced headwinds from its other sites, the company’s Leonora operations saw its gold production actually increase 15% quarter on quarter to 51,757 ounces.

The company also managed to secure a lower all-in sustaining cost (AISC) on its gold production of $1,492 per ounce, an 8% decrease from the prior quarter.

Furthermore, St Barbara left the quarter with $42 million on its balance sheet – down from $133 million in June. This followed a flurry of capital spending including net investments of $21 million and a dividend payout of $13 million.

Aside from this, drilling at the company’s Trotsky prospect at its Simberi site has “identified additional oxide material to extend the operating life before the conversion of the processing plant to sulphide treatment”.

What did management say?

Speaking on the announcement, St Barbara managing director and CEO Craig Jetson said:

Exploration at both Leonora and Simberi have yielded strong results in the last quarter demonstrating the upside in our brownfield portfolio. I have set the aspiration of a new open pit commencing operation at Trevor Bore in 2024. This is the first step in delivering on our Leonora Province Plan.

What’s next for St Barbara?

From the momentum sustained this quarter, the gold giant maintains its full-year production guidance of 305,000 to 355,000 ounces of gold.

St Barbara forecasts it can achieve this production at an AISC range of $1,710 to $1,860/oz.

The bulk of the company’s forecasts appear to be underlined by its Leonara operations where it models overall gold production of 180,000 to 200,000 ounces.

However, it also sees 60,000 to 70,000 ounces of gold coming from Simberi and 65,000 to 85,000 ounces from its Atlantic operations for FY22.

It has been a difficult year for the St Barbara share price, having posted a loss of 35% since January 1 and a 45% drop over the last 12 months.

The post St Barbara (ASX: SBM) share price drops, maintains full-year guidance 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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