Tag: Motley Fool

Could the Newcrest Mining Limited (ASX: NCM) share price rise to $32 before the end of the calendar year?

One broker thinks that the Newcrest Mining share price could rise to $32 over the next 12 months. That is where the broker calculates a price target, where analysts think the share price will be in 12 months. So, not necessarily where the broker thinks the business will be by the end of the year.

Credit Suisse has a price target of $32 on the gold miner.

Why is Credit Suisse confident on the Newcrest Mining share price?

The broker is attracted to the potential of Newcrest Mining to lift its production over the coming years, whilst simultaneously reducing its expenses.

Newcrest Mining said in a presentation a couple of weeks ago that the pre-feasibility study (PFS) for the Red Chris asset showed it has potential to become a world class, long life mine. It also said it can have substantial low-cost gold and copper production growth in a tier 1 jurisdiction. It also said there would be negative cost for gold production from the Block Cave after accounting for copper credits.

The initial ore reserve estimate is 8.1 million ounces of gold and 2.2 million tonnes of copper.

Other details from the presentation

Newcrest said in a presentation that the indicative base case copper production profile to 2030 is going to grow by 37%. It’s expected to reach more than 175kt per annum in FY30. Management said that copper growth advances Newcrest’s ESG (environmental, social and governance) objectives and allows participation in decarbonisation opportunities.

Regarding gold, by 2030 Newcrest Mining said it has a “strong” base case gold production of approximately 2 million ounces per annum, assuming execution of the PFS projections, but before any potential expansions or upside.

All four organic growth options for Newcrest – Cadia, Red Chris, Havieron and Lihir – have PFS that are estimated to deliver an internal rate of return of 16% or higher. It also projected that the group all-in sustaining cost (AISC) could fall by more than 50% from current levels by FY30. This could help increase the Newcrest Mining share price over time.

Newcrest also said that there is significant upside potential, with “growth optionality beyond stage 1 project parameters as well as exploration upside”.

The intention of Newcrest Mining is to fund all four projects through operating cash flow and existing liquidity.

The first production of gold and copper at Red Chris Block Cave is expected to be FY27 and for Havieron in the second half of FY24. The Lihir Phase 14A is expecting first ore in the fourth quarter of FY22.

What is the Credit Suisse valuation on the Newcrest Mining share price?

Based on the projected numbers, Newcrest Mining shares are valued at 22x FY22’s estimated earnings and 20x FY23’s estimated earnings.

If the broker is right about Newcrest Mining’s price target, then its shares could go up by almost 30% in the year ahead.

The broker also thinks that the gold miner could pay an annual dividend of around 20 cents per share in FY22.

The post Can the Newcrest (ASX:NCM) share price hit $32 by the end of 2021? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Newcrest (ASX:NCM) CEO reveals the company’s gold, copper and Bitcoin mining plans
• Northern Star (ASX:NST) share price wanes as quarterly production falls
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

from The Motley Fool Australia https://ift.tt/3vzRw7j

Last week was a good one for the S&P/ASX 200 Index (ASX: XJO). The benchmark index climbed 53.5 points or 0.7% to end the period at 7,415.5 points.

While a good number of shares pushed higher, some climbed more than most. Here’s why these were the best performing ASX 200 shares last week:

Nuix Ltd (ASX: NXL)

The Nuix share price was the best performer on the ASX 200 last week with an 18.2% gain. Strangely, the majority of these gains were made during the first four days of the week on no news, with only a small portion coming on Friday after the release of a major announcement. That announcement revealed the appointment of Jonathan Rubinsztein as the investigative analytics and intelligence software provider’s new CEO and Executive Director. Mr Rubinsztein recently resigned as the CEO of auto parts software company Infomedia Limited (ASX: IFM).

Appen Ltd (ASX: APX)

The Appen share price was the next best performer with a gain of 13.1% last week. This was despite there being no news out of the artificial intelligence services provider. Though, it is worth noting that a week earlier Citi retained its buy rating and lofty $17.00 price target on the company’s shares. The Appen share price ended the week notably lower than this price target at $10.91 despite its strong gain.

Nearmap Ltd (ASX: NEA)

The Nearmap share price wasn’t far behind with a gain of 11.4% over the five days. Once again, this was despite there being no news out of the aerial imagery technology and location data company. The Nearmap share price has now broken into positive territory year to date following last week’s gain.

Perpetual Limited (ASX: PPT)

The Perpetual share price was a strong performer last week and rose 10.5% over the period. Investors were buying the fund manager’s shares following the release of a decent quarterly update. Perpetual revealed that its total assets under management ended the first quarter at $101.0 billion, up 2.7% since the end of June. Morgans responded to the update by retaining its add rating and lifting its price target to $45.07.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts this Friday
• Why Aussie Broadband, Core Lithium, Cardno, and Nuix are storming higher
• ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher

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

from The Motley Fool Australia https://ift.tt/3B0Mba8

The S&P/ASX 200 Index (ASX: XJO) was on form last week and recorded a solid gain. The benchmark index rose 0.7% or 53.5 points to end the period at 7,415.5 points.

Unfortunately, not all shares were able to climb with the market. Here’s why these were the worst performing ASX 200 shares last week:

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price was the worst performer on the ASX 200 last week with a decline of 11.1%. This appears to have been driven by a pullback in coal prices. This follows reports in China that coal producers in the country have agreed to observe a price ceiling for thermal coal ahead of the winter heating season.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price wasn’t far behind with a decline of 10.1% over the five days. Investors were selling the travel agent’s shares following the release of a trading update at its annual general meeting. Flight Centre revealed that its sales reached 27% of pre-COVID levels globally during September, which is still well short of making its operations breakeven. In response to the update, Goldman Sachs commented: “Overall, while the outlook remains positive and corporate progress is encouraging, the update remained lacklustre on leisure.” Flight Centre also raised $400 million via a convertible notes offering.

Mineral Resources Limited (ASX: MIN)

The Mineral Resources share price was out of form and dropped 9.2% last week. This was despite there being no news out of the mining and mining services company. Though, investors have been selling its shares in recent months due to its exposure to falling low grade iron ore prices. In addition, the team at Ord Minnett held firm with their hold rating but trimmed their price target on the company’s shares to $50.00 last week.

Alumina Limited (ASX: AWC)

The Alumina share price was a poor performer and tumbled 8.4% over the period. Last week analysts at Credit Suisse downgraded the alumina producer’s shares to a neutral rating with a price target of $1.90. Credit Suisse doesn’t believe current alumina prices are sustainable and feels its shares expensive at current levels.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Which ASX 200 dividend shares have investors been heavily trading this week?
• These 3 ASX 200 shares are topping the volume charts this Friday
• Qantas (ASX:QAN) share price soars to 52-week high on international travel update
• HESTA boss calls out ASX 300 companies without net-zero targets

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 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.

from The Motley Fool Australia https://ift.tt/30IsdEu

The Australian share market is home to a number of companies growing at a rapid rate.

Three that could be well-placed for growth over the long term are listed below. Here’s what you need to know about these ASX shares:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX growth share to look at is this pizza chain operator. Domino’s also been growing at a consistently solid rate for over a decade thanks to the popularity of its offering and the expansion of its footprint. Pleasingly, the future looks very positive thanks to its expansion plans. Domino’s started FY 2022 with a total of 2,974 stores across its network but sees scope to more than double this over the next decade in existing markets. The company also has the balance sheet strength to make acquisitions that open up new geographic markets, increasing its addressable market.

Earlier this week, Goldman Sachs retained its buy rating and $154.90 price target on the company’s shares.

Hipages Group Holdings Ltd (ASX: HPG)

Another ASX growth share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies. At the end of FY 2021, the company had over 34,000 tradies using its platform. Combined with strong consumer growth, this underpinned impressive performances across many key metrics. It also led to Hipages outperforming its upgraded full year revenue guidance with a 22% year on year jump to $55.8 million.

Goldman Sachs is also a fan of Hipages. It currently has a buy rating and $4.35 price target on its shares.

IDP Education Ltd (ASX: IEL)

A final ASX growth share to look at is IDP Education. It is a provider of international student placement services and English language testing services. While IDP Education was hit hard by the pandemic, it has been bouncing back strongly. For example, the company has just revealed that during the first quarter of FY 2022, IELTS volumes were up 84% on the same period last year. Combined with its strong market position and recent acquisition in the lucrative India market, the future looks very positive for IDP Education.

Earlier this week, Morgan Stanley retained its overweight rating and $40.20 price target on IDP Education’s shares.

The post 3 excellent ASX growth shares to buy appeared first on The Motley Fool Australia.

More reading

• The ASX share showing explosive post-COVID growth
• Top brokers name 3 ASX shares to sell today
• 2 ASX 200 shares that keep growing their dividends
• 5 things to watch on the ASX 200 on Tuesday
• Leading broker names 2 fantastic ASX growth shares to buy now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hipages Group Holdings Ltd. and Idp Education Pty Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Hipages Group Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3C71y2b

The Pro Medicus Limited (ASX: PME) share price finished the day in the green.

At the end of the session, the health imaging technology company’s shares finished 2.1% higher at $54.54. This puts the share price 22% away from its 52-week high of $70.00.

Why is the Pro Medicus share price on the move today?

Investors seem to be pleased with the information contained in Pro Medicus’ 2021 annual report, with shares climbing higher today. While investors got a chance to view the performance of FY21 back in August when the company’s full-year results were posted, the annual report often provides greater detail.

In the report, management highlighted the significant nature of the last financial year. It was a year that entailed record revenue and earnings following the successful signing of multiple contracts. To reiterate, reported profit after tax increased 33.7% to $30.85 million, while revenue climbed 19.5% to $67.88 million.

During the period, Pro Medicus won 6 new contracts and renewed 2 key contracts in North America. As a result, 9 of the “top 20” hospitals in the United States, according to US News, are now standardised on the company’s Visage-7 imaging platform.

Management commentary

Commenting on the record year, Pro Medicus CEO Sam Hupert and Chair Peter Kempen said:

The strong result was driven by growth in all three jurisdictions in which the company operates. Our North American business experienced strong growth in transaction revenue and significant expansion of our footprint in the region, winning 5 major contracts across a range of opportunities in both the academic and nonacademic/IDN spaces.

Our Australian and European divisions were also solid contributors. In Europe, the company won a key contract with Munich-based LMU Klinikum, one of the largest teaching hospitals in Europe which contributed to our revenue growth in the region. In Australia, our RIS product continues to be the undisputed market leader with revenue increasing due to the continued rollout of our key contracts during the period.

Additionally, management noted it foresees positive drivers in the external environment for its software. For instance, there is a significant increase in image data and file size. What was once 2 gigabytes to 3 gigabytes (GB) is now 6GB to 10 GB per file. This puts Visage-7 at an advantage over competitors using traditional ‘compress and send’ technology.

Similarly, the adoption of electronic health records and transaction-based licensing is expected to drive further demand for the company’s Visage technology.

What’s next for the company?

According to the report, Pro Medicus anticipates further contract opportunities to be realised in FY2022. This is due to improved prospects in the United States, as well as the ongoing rollout of the Visage RIS platform. Previously won contracts are also expected to come online this year. This is expected to deliver an increase to the company’s generated revenue.

Pro Medicus also revealed today its annual general meeting will be held on 23 November 2021. The Pro Medicus share price has gained 63% in the last 12 months.

The post Why did the Pro Medicus (ASX: PME) share price finish higher today? appeared first on The Motley Fool Australia.

More reading

• Why is the Pro Medicus (ASX:PME) share price jumping 4% today?
• ASX 200 (ASX:XJO) midday update: Gold miners jump, Pro Medicus wins contract
• Pro Medicus (ASX:PME) share price dips despite positive update
• 5 things to watch on the ASX 200 on Friday
• The Pro Medicus (ASX:PME) share price is surging 5% on Thursday

Motley Fool contributor Mitchell Lawler owns shares of Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3pnqpew

Today, the S&P/ASX 200 Index (ASX: XJO) jostled around only to finish the day flat. The benchmark index ended where it started, flat at 7,415.5 points.

It was another mixed day on the markets, with consumer discretionaries and staples performing strongly while energy and materials tumbled. Overall, the majority of ASX 200 shares finished higher on Friday. Unfortunately, those that struggled were some of the larger companies in the index.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Novonix Ltd (ASX: NVX) was the biggest gainer today. Shares in the battery materials company surged 6.40% higher. Interestingly, the upwards move occurred despite no announcements today. Find out more about Novonix here.

The next biggest gaining ASX share today was Healius Ltd (ASX: HLS). The healthcare company added a further 4.42% to its share price. This is the second consecutive day of gains after it revealed impressive quarterly results. Uncover the latest Healius details here.

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

ASX-listed company	Share price	Price change
Novonix Ltd (ASX: NVX)	$6.15	6.40%
Healius Ltd (ASX: HLS)	$4.96	4.42%
Event Hospitality and Entertainment Ltd (ASX: EVT)	$15.905	4.02%
Liberty Financial Group (ASX: LFG)	$6.43	3.71%
Wesfarmers Ltd (ASX: WES)	$57.55	3.60%
Auckland International Airport Ltd (ASX: AIA)	$7.74	3.20%
Liontown Resources Ltd (ASX: LTR)	$1.665	3.10%
Ramsay Health Care Ltd (ASX: RHC)	$69.135	2.45%
Pro Medicus Ltd (ASX: PME)	$54.63	2.27%
Altium Ltd (ASX: ALU)	$37.92	2.07%

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

• These 3 ASX 200 shares are topping the volume charts this Friday
• Brokers name 3 ASX shares to buy today
• ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher
• 5 things to watch on the ASX 200 on Friday
• Why did the Magellan (ASX:MFG) share price smash the ASX 200 today?

Motley Fool contributor Mitchell Lawler owns shares of Pro Medicus Ltd. and Ramsay Health Care Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium and Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Altium, Pro Medicus Ltd., and Wesfarmers Limited. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3B2KHMv

This week has seen some interesting trends on the ASX boards. For one, the S&P/ASX 200 Index (ASX: XJO) has enjoyed a week of relatively solid gains, in stark contrast to the volatility we saw in the weeks prior.

As it stands at the time of writing this Friday, the ASX 200 has managed to eke out a gain of roughly 0.75% for the week thus far.

But which shares have ASX investors been buying and selling this week, specifically dividend-paying shares? That’s what we’ll be checking out today.

Most days here on the Fool, we check out the ASX 200 shares that are dominating the trading volume charts. This gives us a fair indication of which ASX 200 shares investors have been buying and selling with the most enthusiasm.

3 heavily traded ASX 200 dividend shares this week

Our first ASX dividend share that investors have been heavily trading this week is Telstra Corporation Ltd (ASX: TLS). Telstra has topped the volume charts several times this week, including yesterday.

The Telstra share price has had a rather lousy week, which could explain this. The telco is down significantly more than the ASX 200 since Monday, despite today’s modest bump. But this falling share price has pushed Telstra’s running dividend yield higher. Its annual 16 cents per share payouts represent a fully franked yield of 4.26% on current pricing.

South32 Ltd (ASX: S32) is another ASX 200 dividend share investors have been trading with enthusiasm this week. It’s topped the volume charts a couple of times. Like Telstra, this has mostly been on the negative side though.

Since Monday, South32 shares have fallen a nasty 3.2%. But in some good news, this fall has pushed up South32’s current and fully franked dividend yield to 1.74% at the time of writing.

Alumina Limited (ASX: AWC) is our third ASX 200 dividend share that’s been popular with investors this week, going off of trading volumes at least. Continuing the trend we see on this list, Alumina has also had a very tough week.

It’s fallen from around $2.27 on Monday morning to today’s share price of $2.06 apiece. However, that puts Alumina’s running dividend yield at a meaty 4.07% (replete with franking) at the present share price.

The post Which ASX 200 dividend shares have investors been heavily trading this week? appeared first on The Motley Fool Australia.

More reading

• 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?
• HESTA boss calls out ASX 300 companies without net-zero targets
• 5 things to watch on the ASX 200 on Friday
• These 3 ASX 200 shares are topping the volume charts on Thursday

Motley Fool contributor Sebastian Bowen owns shares of 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 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.

from The Motley Fool Australia https://ift.tt/3B3QSQC

ASX-listed buy now, pay later (BNPL) shares, such as Afterpay Ltd (ASX: APT), are back under the microscope this afternoon. This follows the Reserve Bank of Australia (RBA) posting its conclusions paper from its review of Retail Payments Regulation.

While there were a number of changes suggested by the RBA, the one which sticks out like a sore thumb involves a modification to BNPL providers ‘no-surcharge’ rule.

Despite the conclusions, the Afterpay share price is trading 0.85% higher to $127.41 this afternoon.

Changes that could weigh on Afterpay shares

Since their rise to prominence, ASX-listed BNPL shares have been under the watchful eye of regulators. In fact, the Reserve Bank of Australia has been undertaking its review of the payments space since November 2019. However, today marks the central bank’s final set of conclusions.

While the suggestions spanned the broader payments industry, the BNPL sector was spotlighted on the topic of surcharging. Currently, the bank’s existing surcharging rules allow merchants to pass on the fees associated with accepting credit and debit cards. Yet, BNPL services typically have ‘no-surcharge’ rule that bars merchants from passing on the costs to consumers.

Initially, the RBA had considered this stipulation promoted innovation and competition among payment systems as new players built up their consumer network. Although, now the central bank is considering the need for a balanced competitive environment between BNPL and card providers.

This followed feedback from merchants indicating BNPL services had fast become an essential offering for retailers. As a result, the no-surcharge rule has increased payment costs for merchants. As such, the RBA feels it is necessary to provide competition in a space where merchants feel it necessary to provide a particular payment method for themselves to stay competitive. In which case, a removal of the rule could weigh on Afterpay shares.

From its conclusions paper, the RBA’s board stated:

Taking these factors into account, the Board has concluded that it would be in the public interest and consistent with its mandate to promote competition and efficiency in the Australian payments system for BNPL providers to remove their no-surcharge rules, so that merchants have the ability to apply a surcharge to those payments if they wish. This approach is consistent with the Board’s long-standing principle in relation to no-surcharge rules.

Could it put the Afterpay/Square deal on thin ice?

From this, the bank is now engaging with Treasury on regulatory approaches. Although the markets don’t appear to be reacting with much disdain this afternoon, one analyst is seeing red for ASX BNPL shares. According to analysts at UBS, the news could negatively impact the economics on which BNPL companies operate.

Additionally, the bearish broker warned of what the development could mean for Afterpay’s deal in the making with US payments giant Square Inc (NYSE: SQ). Specifically, UBS considers any changes to the no-surcharging rule a threat to the completion of the merger.

We see this as a materially negative development for Afterpay in particular given its reliance on high merchant fees to fund its economics, and incrementally negative for Zip (though Zip is more reliant on consumer fees to fund its economics). In our view, we see a strong risk that overseas regulators could impose similar restrictions on BNPL. We also see this development as increasing completion risk for Square’s proposed acquisition of Afterpay.

Tom Beadle – UBS

Despite the analysts’ bearish sentiment, many ASX-listed BNPL shares, including Afterpay, are in the green this afternoon.

The post Afterpay (ASX:APT) and other BNPL shares in focus as RBA looks to rein in regulation appeared first on The Motley Fool Australia.

More reading

• 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?
• Zip (ASX:Z1P) share price rallies 5% on Tuesday
• Why Bapcor, Cochlear, Novonix, and Zip shares are rising
• Leading brokers name 3 ASX shares to sell today

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Square, 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.

from The Motley Fool Australia https://ift.tt/3DZ8rD4

The Red Dirt Metals Ltd (ASX: RDT) share price has slipped from its all-time closing high of 85 cents on 12 October to 68.5 cents in late afternoon trade today. That’s a fall of 19%.

This week alone Red Dirt shares have slipped 14%, running down from a high of 80 cents on Monday. The current price is 3.52% lower than yesterday’s closing price.

What’s up with the Red Dirt Metals share price?

Red Dirt set a new record high last week after it announced an update on its Mt Ida Project, which it acquired in late September.

The company advised it had intersected spodumene – a source of lithium – after drilling at the project. It struck a pegmatite level with a concentration of up to 63% spodumene found.

Of the four samples taken from the successful drill hole, 1 assay contained 63% spodumene concentration, whereas another had a 53% concentrate.

The company is still waiting on additional results from its drill program but is pleased with the outcomes thus far.

Interestingly, stumbling across lithium wasn’t Red Dirt’s main objective when acquiring the Western Australia mine. It is actually a gold project that includes the historic Timoni Gold Mine, plus more.

Combined, the mines at Mt Ida have produced more than 300,000 ounces of gold over years.

It was only after conducting its due diligence that it acted on the advice of a “lithium specialist”. At that point, it “began reviewing the historical data in relation to the lithium potential” at the site.

Red Dirt will now commence a subsequent drill program at the Mt Ida site. It’s planning a 25,000 metre program using a mix of reverse circulation (RC) and diamond drilling.

What else has Red Dirt been up to?

Curiously, the company did put out a non-price-sensitive release on Wednesday. This showed its response letter to a set of questions from the ASX in relation to the Mt Ida announcement.

The ASX penned the 20-question inquiry asking Red Dirt to ‘please explain’ a number of factors around the timing of the announcement.

ASX compliance basically wanted to know why it took the company so long from when it received the lithium results, to when it made the announcement public.

Red Dirt provided colour for each question. It confirmed earlier points that the company was not initially aware of the lithium finds and that the test interpretations had several days turnaround time.

It claimed once results were obtained, due to the number of entities with vested interests in the site, they took several days to process.

Nonetheless, investors don’t appear overly pleased with the company today and certainly aren’t in a buying frenzy to get a piece of it.

Red Dirt Metals share price

The Red Dirt Metals share price has climbed 137% since January 1 this year and has rallied around 213% in the last 12 months.

Both of these returns outpace the S&P/ASX 200 index (ASX: XJO)’s climb of around 20% in that time.

The post Why is the Red Dirt (ASX:RDT) share price down 14% this week? appeared first on The Motley Fool Australia.

More reading

• The Red Dirt Metals (ASX:RDT) share price just hit an all-time high. Here’s why
• Why is the Red Dirt Metals (ASX:RDT) share price soaring 19% today?
• Red Dirt Metals (ASX:RDT) share price launches 45% on lithium update

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.

from The Motley Fool Australia https://ift.tt/3poak8f

The Talga Group Ltd (ASX: TLG) share price is dipping during late afternoon trade. This comes despite the technology minerals company announcing it has commenced trial mining at its wholly-owned Vittangi graphite project.

Throughout the day, Talga shares have been hovering in negative territory. Currently, its shares are down 3.21% to $1.51.

Trial mining campaign commences

In its release, Talga advised it has begun trial mining to extract natural graphite from Vittangi’s Niska South deposit. The sample size is estimated to be about 2,500 tonnes of ‘critical element’ as deemed by the European Union.

The raw ore will be processed and refined into the company’s flagship Li-ion battery anode product Talnode-C. This will be then used for large scale qualification trials in electric vehicle batteries.

Talga’s site works included the installation of environmental monitoring systems, such as dust sampling and water treatment equipment, as well as fencing. In addition, roadworks and overburden clearing have been conducted at the site, revealing visible high-grade graphite near surface.

The target graphite mineralisation appeared at a much shallower depth than expected at 0.5 meters to 3 metres below. Originally, the company estimated the graphite ore to be at a depth of 4 metres to 5 metres.

Talga managing director, Mark Thompson, commented

We are excited to start this trial graphite mine at Niska South to supply critical natural graphite for our downstream refining into greener Li-ion battery anodes for electric vehicles. Additionally, seeing such shallow and high-grade mineralisation extending from our drilling and deposits up to 3km away demonstrates the consistency of this world-class graphite supply for more sustainable battery manufacturing within Europe.

Talga share price summary

Over the course of 2021, Talga shares have taken investors on a rollercoaster ride, down roughly 7% for the period. However, when looking at the past 12 months, its shares have posted a 55% gain, buoyed by a sharp rise last November.

Based on today’s price, Talga commands a market capitalisation of around $457.88 million and has approximately 303.23 million shares outstanding.

The post Talga (ASX:TLG) share price edges lower on Vittangi graphite project update appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Friday
• Why Aurizon, De Grey Mining, Lynas, and Yancoal shares are falling
• Rio Tinto (ASX:RIO) share price threatens fresh year-to-date low
• Here’s what’s next for the Bitcoin price: expert panel
• Brokers name 3 ASX shares to buy today

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.

from The Motley Fool Australia https://ift.tt/3m3cE2m