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The Poseidon Nickel Ltd (ASX: POS) share price is charging higher today following news its products will be studied for their ability to create battery cathode material.

The company has signed a memorandum of understanding with Pure Battery Technologies (PBT). Under the understanding, the companies will test if Poseidon’s nickel can be used as a base feed for PBT’s proposed precursor Cathode Active Material (pCAM) refining hub.

At the time of writing, the Poseidon share price is 10.5 cents, 5% higher than its previous closing price.

Let’s take a closer look at today’s news from the nickel exploration and development company.

Poseidon share price charges up on battery-related news

The Poseidon share price is surging after the company announced it could soon supply nickel for battery cathodes.

Poseidon and PBT will be working together to see if Poseidon can supply PBT’s proposed Kalgoorlie refinery.

Initially, the companies will be looking into the feasibility of producing up to 50,000 tonnes of pCAM each year.

PBT has commercialised a selective acid leaching process that can produce high-quality, affordable nickel and cobalt materials for lithium-ion batteries. PBT’s process also has a lower environmental footprint than other methods.

PBT will be bringing its technology and expertise to the table. Whereas, Poseidon will provide typical specifications and anticipated production volumes from its projects.

The understanding may lead to a definitive agreement. Such an agreement would outline how the companies would fund and develop a supply chain for battery manufacturing markets.

Poseidon’s managing director and CEO Peter Harold commented on the news:

We look forward to working with PBT to determine if our potential concentrate production could be feed for PBT’s proposed refinery, should we decide to proceed with development of our projects. This could be a great way for us to improve the payability of the nickel in our concentrates and improve the margins of our projects.

The post Here’s why the Poseidon (ASX:POS) share price is up 5% on Wednesday appeared first on The Motley Fool Australia.

More reading

• Why the GUD (ASX:GUD) share price is storming 7% higher today
• Here’s why the Prescient Therapeutics (ASX:PTX) share price is leaping 11% today
• Pilbara Minerals (ASX:PLS) share price struggles despite plant restart milestone
• Here’s why ASX hydrogen shares are leaping higher today
• Envirosuite (ASX:EVS) share price climbs 9% on NASA contract

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 GUD Holdings Limited (ASX: GUD) share price is charging higher on Wednesday afternoon.

At the time of writing, the diversified products company’s shares are up 7% to $11.30.

Why is the GUD share price storming higher?

There have been a couple of catalysts for the strong gain by the GUD share price today.

One is the release of an update at the Citi Australia & NZ Investment Conference and the other is a broker note in response to this.

In respect to the former, the update reveals that demand for GUD’s products has remained resilient despite widespread and protracted lockdowns.

GUD advised that its existing Automotive businesses achieved modest organic revenue growth during the first quarter. This is despite the company cycling very strong growth in the prior corresponding period. Positively, its acquisitions are performing in line with expectations as well.

Elsewhere, the Davey business has reported a strong increase in revenue over the prior corresponding period. Management also advised that its action plan is well advanced.

Overall, the company’s revenue and earnings before interest and tax is tracking in line with management’s expectations with margins trending ahead of the second half of FY 2021.

Broker note

Also giving the GUD share price a lift was a broker note out of Citi this morning.

According to the note, the broker has retained its buy rating and $12.30 price target on the company’s shares.

Based on the current GUD share price, this implies potential upside of 8.8% over the next 12 months before dividends or ~14% including them.

Citi commented: “GUD’s 1Q22 update was largely positive from a topline perspective. However, we have left our earnings forecasts unchanged noting: i) we are already 3% ahead of Factset Consensus FY22 EBIT, ii) further Guidance may be provided at the AGM (29 Oct) particularly around to what extent the phasing of price rises will offset supply chain cost pressures once the FX tailwind wears off.”

The post Why the GUD (ASX:GUD) share price is storming 7% higher today appeared first on The Motley Fool Australia.

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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 Prescient Therapeutics Ltd (ASX: PTX) share price is gaining ground in afternoon trade today and is currently changing hands at 24.5 cents apiece.

The biotechnology company’s shares are on the move after Prescient announced pre-clinical data readouts regarding its lead drug candidate.

Read on for more details.

What was announced?

Prescient advised it will be presenting pre-clinical data from a recent study on its OmniCAR candidate at the Cell & Gene Meeting on the Mesa in California. The event started yesterday and runs until 14 October.

According to the company, OmniCAR allows controllable T-cell activity and multi-antigen targeting with a single cell product.

Both of these functions are critical in immune response in humans to protect against illness. The company is seeking a remedial breakthrough with this route to treat various types of cancer.

The company said the Cell & Gene Meeting brings together top executives and decision-makers across various therapies, including cell therapy.

From the pre-clinical readouts, Prescient highlights that OmniCAR has presented capacity to “deliver next-generation cell therapies that are controllable and able to target multiple cancer antigens”.

This is an advantage over the current limitations that CAR-T therapy – the platform on which OmniCAR works – presents in the modern clinical setting.

That’s because CAR-T therapy involves growing living cells that continue to grow. These are then administered to patients which makes outcomes less predictable and controllable.

What else did the company say?

Other key takeouts from the data include that OmniCAR demonstrated a curious phenomenon where it can be “redirected towards a different antigen” by tweaking the formulation. When this happened, it exhibited a dose-response to cancer-killing activity.

For reference, a dose-response measures the relationship between the amount of drug given and the level of response to it. Usually, a stronger relationship indicates a greater efficacy.

Aside from this, Prescient’s other lead drug candidates, PTX-100 and PTX-200, are each progressing through clinical trials.

Both compounds also aim to treat and prevent the onset of cancer.

Investors have bought on the news today and are pushing the Prescient Therapeutics share price 11% higher from the open.

This extends a 9% rally the company’s shares have been on this past week.

Prescient Therapeutics share price snapshot

The Prescient Therapeutics share price has delivered an outsized return of 266% this year to date.

This brings its gain over the past 12 months to 271%, well ahead of the benchmark S&P/ASX 200 Index (ASX: XJO)’s climb of about 20% in that time.

At the time of writing, Prescient has a market capitalisation of $157 million.

The post Here’s why the Prescient Therapeutics (ASX:PTX) share price is leaping 11% today appeared first on The Motley Fool Australia.

More reading

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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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The Pilbara Minerals Ltd (ASX: PLS) share price is lagging behind its lithium peers on Wednesday despite the company announcing its first spodumene production at the Ngungaju Plant.

At the time of writing, the Pilbara Minerals share price is up 1.02% to $1.98.

Ngungaju Plant on track for 2022 ramp up

Pilbara Minerals first announced its plans to restart its Ngungaju plant in June, citing $39 million in restart costs.

Today, less than four months after its decision to restart Ngungaju, its coarse production circuit successfully delivered its first spodumene concentrate production.

Pilbara Minerals said that the restart of the coarse circuit is expected to accelerate spodumene concentrate production, with construction, commissioning and ramp-up works progressing for both fines and course concentrate circuits.

The initial production from the coarse circuit is expected to yield lower lithium recoveries, which should improve once its fines circuit is re-commissioned and optimised.

Next up, the company expects the production of fines concentrate to commence during the March quarter 2022.

Pilbara Minerals is targeting an annual production capacity of approximately 180,000 to 200,000 dry metric tonnes (dmt) from Ngungaju by mid-2022.

This should bolster the company’s overall production portfolio, with its flagship and adjacent Pilgan Plant producing between 360,000 to 380,000 tpa.

Pilbara Minerals reiterated an FY22 spodumene concentrate production guidance across the entire Pilgangoora Project of 460,000 to 510,000 dmt.

The production from Ngungaju is uncommitted to offtake agreements. Pilbara Minerals intends to use Ngungaju production to support further sales from the emerging spot market via its recently launched Battery Materials Exchange (BMX) digital sales platform.

Pilbara Minerals share price so far this year

The Pilbara Minerals share price has been trading sideways since early August, after surging more than 100% year-to-date.

It briefly fell to two-and-a-half month lows of $1.78 on Tuesday last week. Before rebounding back around the $2 level.

The post Pilbara Minerals (ASX:PLS) share price struggles despite plant restart milestone appeared first on The Motley Fool Australia.

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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’s a good day to be an ASX hydrogen shareholder after the New South Wales Government announced its brand new $3 billion green hydrogen strategy.

The state government will be offering incentives for company’s producing green hydrogen in New South Wales. It expects the incentives will see more than $80 billion of private investment brought into the state.

‘Green’ hydrogen is made using renewable energy and, as a result, is an almost entirely carbon-neutral fuel source.

The NSW Premier, Dominic Perrottet, stood alongside the NSW Treasurer and Energy Minister, Matt Kean, and the chair of Fortescue Metals Group Limited (ASX: FMG) and Fortescue Future Industries, Andrew ‘Twiggy’ Forrest, to launch the strategy this morning.

At the same time, the share prices of many ASX hydrogen companies were soaring higher.

Right now, the Hazer Group Ltd (ASX: HZR) share price is rocketing 16% higher. Meanwhile, shares in Pure Hydrogen Corporation CDI (ASX: PH2) are up 6%. The Province Resources Ltd (ASX: PRL) share price is also in the green, sporting a 3% gain.

However, the Fortescue Metals share price is sliding lower on Wednesday. At the time of writing, the parent company of Fortescue Future Industries is $14.48, 2.1% lower than its previous close.

Let’s take a closer look at the NSW Government’s new hydrogen strategy.

ASX hydrogen shares gain amid NSW hydrogen strategy announcement

Many ASX hydrogen shares are soaring higher amid the NSW Government’s plan for a future hydrogen industry.

The NSW Government has today announced it will offer up to $3 billion of incentives for companies looking to produce green hydrogen in the state. According to reporting by ABC News, some of the incentives will come as tax breaks.

NSW Treasurer and Energy Minister Matt Kean spoke at the media conference announcing the strategy:

This announcement will see between $80 billion and $270 billion worth of private investment coming into New South Wales between now and 2050…

The size of the hydrogen industry here in New South Wales will be as big as the coal industry in New South Wales by 2050.

Andrew ‘Twiggy’ Forrest, chair of both iron ore giant Fortescue Metals and renewable energy body Fortescue Future Industries, also spoke on the nation’s potential future energy source:

There will be no bigger industry than green hydrogen. It will dwarf the scale of iron ore. It will dwarf the scale of coal…

You have a fossil fuel sector which is in decline… [but] you have a green energy future which can make steel, can make fertilisers, can make cement, can make ships be powered.

The NSW Government has already put $70 million towards developing green hydrogen hubs in the Hunter Valley and Illawarra.

Earlier this week, Fortescue Future Industries partnered with the Queensland Government to build a hydrogen-equipment manufacturing facility in Gladstone.

Fortescue Future Industries is also involved in a number of hydrogen projects, and other renewable energy production projects, over the globe.

The post Here’s why ASX hydrogen shares are leaping higher today appeared first on The Motley Fool Australia.

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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 Envirosuite Ltd (ASX: EVS) share price is on the rise during early afternoon trade on Wednesday. This comes after the Sydney-based environmental tech company announced an exciting partnership with United States space agency NASA.

At the time of writing, Envirosuite shares are hurtling 9.09% higher to 18 cents.

What’s driving the Envirosuite share price higher?

In today’s statement, Envirosuite advised it has been contracted by NASA to participate in the X-59 Community Response Testing project.

Currently, NASA is designing and building the X-plane to bring back supersonic travel to the aviation market.

Almost two decades ago, the Concorde – a British and French supersonic passenger airliner– retired from the skies. The turbojet had a maximum speed of more than 2,100 kilometres per hour and could fly from New York to London in less than 3 hours.

However, noise became a big issue with the jet releasing a supersonic boom when passing the sound barrier. If this occurred over residential areas, it would leave windows broken in many homes. Hence, the Concorde only ever reached supersonic speed over the ocean before it retired in 2003.

NASA’s revolutionary X-59 program aims to bring back supersonic flight, specifically for the United States travel market. It believes it has found a solution with its X-59 prototype which will reduce the sound to a “gentle thump”.

If successful, this could open the door to domestic supersonic travel worldwide.

As such, Envirosuite has been awarded a contract to focus on addressing and managing noise for the X-59 program. The agreement is based on an 8-year period of performance.

Under the deal, Envirosuite will provide NASA with a software platform to capture, process and visualise data from low-sonic boom flight tests. This will enable NASA and members of the testing team to review the low-sonic booms produced in real-time.

The contract is estimated to generate a minimum revenue of around $750,000 to Envirosuite.

The first phase of the project is expected to run until the end of 2023.

Management commentary

Envirosuite CEO Jason Cooper said:

We’re privileged to have been selected as part of the consortium for this exciting and cutting-edge project with HMMH [consortium leader Harris Miller Miller & Hanson Inc.] and NASA. This project represents new opportunities in the innovative area of aerospace, along with the future of Aviation. Our experienced team look forward to being part of this and bringing the X-59 Quiet Supersonic Technology aircraft to the skies.

Despite today’s gain, the Envirosuite share price has lost roughly 6.5% in value over the past 12 months.

The post Envirosuite (ASX:EVS) share price climbs 9% on NASA contract appeared first on The Motley Fool Australia.

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

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The Tesla Inc (NASDAQ: TSLA) share price has long been one of the US shares that have gripped Aussie investors with the most enthusiasm. The electric vehicle and battery manufacturer frequently tops lists of most popular US shares for Aussie investors. Its CEO, Elon Musk, is one of the most well-known CEOs in the world, even in the uber-famous tech industry. And let’s not forget that stellar performance history.

Although Tesla shares have cooled off in recent months, this company is still up more than 80% over the past 12 months, and up 40% or so since just May. Not only that, Tesla shares are still up more than 1,500% over the past 2 years.

So where to now for Tesla, now that it is sitting at US$805.72 a share at the latest pricing? That’s less than US$100 from its all-time high of US$900.40 a share.

Well, one ASX fund manager thinks the Tesla share price has plenty of gas in the tank (ironic pun not intended there). Sydney-based fund manager Holon Global Investments has just released a 144-page report on the future of Tesla. And you can tell by the title ‘Tesla – On the road to a US$10 trillion company and beyond‘, what the gist might be.

So let’s take a look at what Holon Global has found.

Firstly, Holon describes Tesla shares as having “remarkable upside and provide investors with a once-in-a-generation buying opportunity” at their current level.

Using a 30-year discounted cash flow model for Tesla, Holon arrives at a fair valuation today of a whopping US$3,369 per share. That implies that Tesla shares are currently undervalued by as much as 318%. 

Tesla to reach a share price of US$3,369?

But that’s not all, folks. Holon goes further, stating that “if Tesla can achieve our long-term financial forecasts, our DCF valuation for Tesla in 2030 increases to US$6,244 and further increases to US$9,056 in 2040”.

The core of Holon’s investment thesis is a ballooning of global vehicle sales over the next few decades. The fund manager is predicting that Tesla “will benefit from a doubling of global passenger vehicle sales to 206 million vehicles per year by 2050”.

This will underpin demand for electric vehicles, as Holon believes the sale of traditional internal combustion-powered cars will be banned across the globe by 2040. Further, Holon believes 40% of this demand for new vehicles will come from India and China.

At the end of this model, Holon thinks Tesla will be able to capture 25% of global passenger electric vehicle sales over the next decade, and will be producing 5.5 million cars by 2025. Once it reaches this scale, Holon then reckons “very few companies will have the financial strength and product range to challenge Tesla”.

Take Tesla’s other developments, such as Tesla’s energy and solar divisions, autonomous driving technology, as well as other leading software. We then arrive at a prediction of “annual free cash flows that we forecast will reach US$1 trillion per year from 2044 onwards”.

A lot of bold predictions there, but I’m sure Tesla shareholders would be very excited about what Holon had to say about this company.

At the last Tesla share price of US$805.72, this company has a market capitalisation of US$797.67 billion.

The post This Aussie fund manager values Telsa (NASDAQ:TSLA) share price at over US$3,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of Tesla. 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 PVW Resources NL (ASX: PVW) share price has returned from its trading halt and is rocketing higher.

In morning trade, the rare earths explorer’s shares were up as much as 92% to 35.5 cents.

The PVW Resources share price has pulled back a touch since then but remains up 46% to 27 cents.

Why is the PVW Resources share price rocketing higher?

Investors have been bidding the PVW Resources share price higher today following the release of an update relating to its Tanami Project in Western Australia.

According to the release, assay results have been received for 20 rock chip samples from the Killi Killi East and Watts Rise prospects at the Project.

As you might have guessed from the PVW Resources share price performance, the results have been very positive. Management advised that its assays revealed up to 12.45% Total Rare Earth Oxides (TREO), with 14 of 20 samples returning assays greater than 1% TREO and heavy rare earths comprising on average 80% of TREO.

Furthermore, the rare earth mineralised samples at Killi Killi East are located over 1.8km strike length and adjacent to a regional unconformity.

What’s next?

An exploration field program will soon re-commence with geochemical surface sampling and ground radiometrics at Killi Killi East. Follow-up drilling is also planned at Watts Rise and Killi Killi East targeting rare earth and gold mineralisation.

PVW Resources’ Executive Director, George Bauk, commented: “These are significant Heavy Rare Earth results. We now know so much more about this style of mineralisation and what we have uncovered to date at Killi Killi indicates there is significant potential within the Killi Killi Corridor, which is over 2km long, and the regional target of over 18km along the Killi Killi East/Watts Rise trend.”

“We are all aware of the state of the nation in respect to Critical Minerals, with rare earths at the forefront and that has been supported by the recent announcement by the Morrison Government to support the industry through the $2 billion loan facility for Australian Critical Minerals projects to help secure the vital supplies of resources needed to drive the new energy economy and support the resources jobs of the future.”

“PVW has significant experience in advancing a greenfield HRE project to production and what we have is a project in the Tanami that has the potential to be the next significant HRE project in Australia and perhaps the world,” he added.

The post Why the PVW Resources (ASX:PVW) share price is rocketing 92% higher today appeared first on The Motley Fool Australia.

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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 Star Entertainment Group Ltd (ASX: SGR) share price rocketed higher today despite news that the Queensland police is investigating the casino operator.

The Star Entertainment share price surged 5.9% to $3.40 in morning trade. This makes it the third best performer on the S&P/ASX 200 Index (Index:^AXJO).

It remains to be seen if this is a dead-cat bounce for the beleaguered company. But the rally isn’t so surprising as other ASX share laggards have also taken off today.

Embattled ASX shares getting their day in the sun

The problem prone A2 Milk Company Ltd (ASX: A2M) share price tops the leader board with a 7.8% resurgence, while the GUD Holdings Limited (ASX: GUD) share price is the runner up with its 7.1% uplift.

Perhaps investors hunting for deep value ASX shares have been forced to dig in the sin bin.

What these shares have in common is that their share prices have all crashed within the past six months.

Dead-cat bounce for the Star Entertainment share price?

The Star Entertainment share price tumble only started last week when it plummeted over 40%. The panicked sell-off was triggered by reports that management allowed organised crime to use its Sydney and Gold Coast casinos to launder money.

The Queensland attorney-general has asked its police department to officially investigate the allegations, reported the Australian Financial Review.

It’s déjà vu for those who remember what happened to the Crown Resorts Ltd (ASX: CWN) share price.

Investigations span two states

At least Star Entertainment shareholders can find comfort that the Queensland Attorney-General Shannon Fentiman has ruled out a royal commission – at least for now.

“The allegations of money laundering and integrity issues are very serious, and the Office of Liquor and Gaming Regulation are undertaking appropriate investigations, along with the Queensland Police and AUSTRAC,” the AFR quoted Ms Fentiman as saying.

“The investigation will consider the appropriateness and effectiveness of Star’s due diligence processes in relation to anti-money laundering and how the Star approaches exclusions to ensure people are excluded from all properties where appropriate.”

Star Entertainment share price troubles only just beginning

It also appears that New South Wales isn’t pushing for a royal commission. The NSW Independent Liquor and Gaming Authority will instead undertake a private investigation.

However, the NSW investigation is run by Adam Bell SC. He’s the former counsel assisting NSW’s Bergin inquiry into Crown Resorts and has the powers of a royal commissioner, according to the AFR.

Foolish takeaway

This means Star Entertainment’s casino license in the state could be torn up if Bell thought that was warranted.

Value investors jumping to buy the beaten down Star Entertainment share price will need strong stomachs.

These investigations will take time and Star Entertainment’s shareholders are likely to be in for a volatile ride.

The post Star Entertainment (ASX:SGR) share price surges despite police probe appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau owns shares of A2 Milk. 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 A2 Milk. 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 Peninsula Energy Ltd (ASX: PEN) share price is having a bumper day, surging 19.57% to 27.5 cents.

Peninsula Energy owns the Lance Uranium Projects in Wyoming, in the United States. The company is currently transitioning its production method from alkaline to an industry-leading low pH in-situ recovery process.

According to Peninsula Energy, companies that utilise this process populate the lowest quartile of cash costs for global uranium producers.

Peninsula Energy share price jumps on uranium boom

The broader ASX-listed uranium sector is surging on Wednesday following a strong overnight move from international uranium peers.

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN), is currently up 23.47% to 90.8 cents.

The broad-based buying has trickled all the way down to the speculative end of town. Names such as 92 Energy Ltd (ASX: 92E) and Alligator Energy Ltd (ASX: AGE) are jumping 11% and 18%, respectively.

The strength across the uranium sector was reflected through the strong overnight performance of the Global X Uranium ETF. The Global X ETF jumped 11.92% on the back of its highest ever volume since inception.

In addition, uranium spot prices have rallied by around US$2.75/lb or 7.3% to US$40.5/lb overnight, according to Numerco.

How does this impact Peninsula?

Peninsula Energy made the decision to raise $15 million in May to fund its purchase of 300,000 pounds of uranium at US$31.35 per pound.

Management believed this acquisition of physical uranium was “strategically aligned with the planned preparations for the Company’s flagship Lance Project transition to low pH ISR operations.”

As well, it was a potential “source of funding for the restart of operations at Lance following a final investment decision.”

With uranium prices holding above US$40/lb, this means that Peninsula is sitting on a tidy $2.75 million profit for its physical uranium investment.

Peninsula Energy share price in 2021

The Peninsula Energy share price has boomed in 2021. Peninsula Energy shares are up more than 120% year to date thanks to the resurgence of uranium spot prices.

Peninsula marked a 2.5-year high of 35 cents on 15 September.

The post Why the Peninsula Energy (ASX:PEN) share price is rocketing 20% today appeared first on The Motley Fool Australia.

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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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