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The Australian Pharmaceutical Industries Ltd (ASX: API) share price is on the rise after Wesfarmers Ltd (ASX: WES) confirmed it has bought a 19.3% stake in the company.

At the time of writing, shares in the retail pharmacist are trading for $1.54 – 2.33%. The S&P/ASX 200 Index (ASX: XJO) is 0.36% higher, for context.

Wesfarmers has been looking to acquire 100% of API for some months now. The competition for the company recently heated up when Sigma Healthcare Ltd (ASX: SIG) entered the fray, submitting a mostly scrip bid for API.

Let’s take a closer look at today’s news.

Why API shares are in focus

In a statement to the ASX, Wesfarmers confirmed its acquisition of 95.1 million shares in API – or roughly 19.3% of the company. The purchase was made pursuant to an agreement with API’s largest shareholder, Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

Wesfarmers says this is not the end of its interest in API. The retail conglomerate says it still wishes to purchase 100% of API for $1.55 per share. Wesfarmers also says now that it owns nearly a fifth of API, it will use its voting power to try and deny Sigma from buying the retail pharmacist. When Wesfarmers submitted this bid, the API share price shot up.

The company paid Soul Patts $1.38 per share and has agreed to pay the remainder should its bid for API be successful.

“Wesfarmers continues to see opportunities to invest in and strengthen the competitive position of API and its community pharmacy partners. Exercising our option to acquire 19.3 per cent of API reflects the Group’s commitment to the transaction and the continued progress of the Wesfarmers proposal,” Wesfarmers Managing Director, Rob Scott, said.

API is best known for owning and operating Priceline and Soul Pattinson pharmacies/beauty stores across Australia. It also owns a chain of 57 cosmetic, skin and laser hair removal clinics in Australia and New Zealand. Due to Australian regulations, it operates its pharmacies under a franchise model.

Despite Wesfarmers operating an industrial branch of its business, the company is best known for owning and operating retail brands like Bunnings, Kmart, and Officeworks. Its proposed purchase of API may be the retailers attempt to further diversify itself into more product lines in Australia – in this case, medicine and beauty products.

API share price snapshot

Over the past 12 months, the API share price has increased 48.1%. This is mostly due to the takeover attempts of Wesfarmers and Sigma, however. Year-to-date, shares in the company have risen just over 21%. API has a market capitalisation of about $751 million.

The post Australian Pharmaceuticals (ASX:API) share price lifts following Wesfarmers 19% stake appeared first on The Motley Fool Australia.

More reading

• The final Wesfarmers (ASX:WES) dividend will be paid out today. Here’s what you need to know
• 5 things to watch on the ASX 200 on Thursday
• Here’s what happened to the Wesfarmers (ASX:WES) share price in September
• Here’s why the Wesfarmers (ASX:WES) share price is down 4% in a week
• 2 beaten-up ASX shares now ready to rally: expert

Motley Fool contributor Marc Sidarous 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 Washington H. Soul Pattinson and Company Limited and Wesfarmers 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 CV Check Ltd (ASX: CV1) share price is soaring today following the company’s first-quarter trading update.

At the time of writing, the online integrated screening and verification company’s shares are up 15.15% to 19 cents.

How did CV Check perform in Q1 FY22?

Investors are sending the CV Check share price higher after the company reported robust numbers for the 3-month period.

According to its release, CV Check achieved record revenue of $6.3 million, up 85.4% on this time last year. The successful shift into a B2B focused strategy underpinned the strong result. This is despite a slowing market under repeated and extended lockdowns in Australia’s most populous states.

Consolidated revenue included $0.6 million in software-as-a-service (SaaS) revenue in the form of licence and consulting fees, representing 9.4% of total revenue.

CV Check CEO Michael Ivanchenko said:

This is yet another great result from the strong core business. Work is progressing well on consolidating technology features to reduce cost to serve and open opportunities to improve quality revenue. I look forward to sharing plans for product development and feature enhancement in coming months.

In addition to the business update, CV Check announced the appointment of Jason Margach as its chief financial and operating officer (CFOO).

The position came into effect on 1 October and sees Margach head up the company’s finance team.

Margach has extensive experience in finance and operations both in Australia and overseas. He holds a Bachelor of Accounting Sciences, completed Commercial Articles with Price Waterhouse Coopers, and has a Master of Business Administration.

Margach has been with the CV Check executive team since the beginning of February 2020.

About the CV Check share price

It’s been a mixed bag performance for the CV Check share price, moving in circles throughout the past 12 months. Its shares have posted a gain of 26% over the first quarter of FY22 but are flat year-to-date.

CV Check has a market capitalisation of roughly $81.5 million, with approximately 429.4 million shares on its books.

The post CV Check (ASX:CV1) share price soars 15% on record revenues appeared first on The Motley Fool Australia.

More reading

• Why has the IntelliHR (ASX: IHR) share price jumped 8% on Thursday?
• Australian Pharmaceuticals (ASX:API) share price lifts following Wesfarmers 19% stake
• How did the Westpac (ASX:WBC) share price perform in the last quarter?
• Top broker sees 19% upside in the Cochlear (ASX:COH) share price
• What happened for the ANZ share price in the FY22 first quarter?

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 recommended CV Check 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 Westpac Banking Corp (ASX: WBC) share price didn’t really move much in the first quarter of this financial year.

Kicking off the new year at $25.81, shares spent the back end of July below $25.00 a unit. They quickly rose to nearly $26.00 through to mid-September, before a brief fall then rebound.

There’s been a bit of news about Westpac during the quarter that could have impacted the company’s share price.

Let’s take a closer look.

What happened to Westpac in the first quarter?

The first story that might have had an impact on the Westpac share price was the bank’s announcement it was selling its Westpac Life NZ business to Fidelity Life Assurance Company. Fidelity Life Assurance Company is New Zealand’s largest locally owned life insurer, backed by cornerstone investor the NZ Super Fund.

According to the release, the two parties agreed a sale price of NZ$400 million (approximately A$373 million) for the business. Westpac and Fidelity have also entered into an exclusive 15-year agreement for the distribution of life insurance products to Westpac’s New Zealand customers.

In the only price-sensitive news, Westpac also released an update for its third quarter.

As Motley Fool previously reported, the Westpac share price fell on the company’s outlook from the statement. The bank reiterated it was facing net interest margin (NIM) headwinds and therefore expected its second half NIM to be lower than what was achieved in the first half. It also reaffirmed its expectation for its expenses to be higher year-on-year in FY 2021.

What did brokers say about the Westpac share price?

Analysts at Citi have been positive on Westpac shares. According to a recent memo from the analysts there, they’ve slapped a buy rating on the bank’s shares and a price target of $30 per unit – a 16% increase on the current share price.

As we have told you previously, Citi is positive about the Westpac share price due to the bank’s bold cost-cutting plans.

The company currently has a cost base of approximately $12.7 billion but is aiming to reduce this down to $8 billion in the coming years.

Citi expects the bank’s cost-cutting to help offset a number of revenue headwinds it is facing. This is particularly the case in its Markets and Treasury segments, which remain under pressure.

Citi isn’t the only broker who is liking the Westpac share price — the team at Morgans is also bullish on the bank. It thinks shares in the company can reach $29.50 in the coming months.

Westpac share price snapshot

Over the past 12 months, the Westpac share price has increased by 44%. Year-to-date, shares in the company are up by more than 30%. Its 52-week high is $27.12 and its 52-week low is $16.91.

At the time of writing, Westpac shares are up 0.74% today to $25.84.

Westpac has a market capitalisation of about $94 billion.

The post How did the Westpac (ASX:WBC) share price perform in the last quarter? appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated ASX dividend shares with 5% yields
• ASX 200 bank shares fall flat amid flurry of new regulations
• Own Westpac (ASX: WBC) shares? Here’s why the bank is making news
• Why the ANZ (ASX:ANZ) share price has lagged the ASX 200
• How does the Westpac (ASX:WBC) dividend compare to the banking sector?

Motley Fool contributor Marc Sidarous owns shares of Westpac Banking Corporation. 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 Cochlear Limited (ASX: COH) share price has been a poor performer in recent weeks.

Since hitting a record high of $257.76 in mid-August, the hearing solutions company’s shares have fallen 17% to $214.85.

Why is the Cochlear share price falling?

A good portion of the decline in the Cochlear share price has come in recent weeks after the company made an announcement.

That announcement revealed that a complaint for patent infringement has been filed by the University of Pittsburgh in the United States District Court for the Western District of Texas, Waco division.

The release reveals that the patent in question is related to a wireless energy transfer system. It was filed at the US Patent Office in 2009 and will expire in 2030.

However, management does not believe that its products infringe the University’s patent and will defend the lawsuit.

It highlights that Cochlear’s legacy products and related patents predate the University’s patent by several years. Furthermore, these earlier legacy products and patents embody the alleged invention of the patent and, accordingly, Cochlear believes the patent is invalid.

Is this a buying opportunity?

One leading broker that is likely to see the weakness in the Cochlear share price as a buying opportunity is Macquarie Group Ltd (ASX: MQG).

According to a recent note, the broker has an outperform rating and $256.00 price target on the company’s shares. Based on the current Cochlear share price, this implies potential upside of 19% over the next 12 months.

And while Macquarie has not commented on the patent dispute, it is worth noting that another broker has and isn’t concerned.

Last week Citi said that it expects the case to be immaterial to Cochlear. This is due to the company’s own wireless energy transfer patents predating those of the University of Pittsburgh.

In addition, the broker doesn’t expect the news to disrupt Cochlear’s existing and future business in a meaningful way.

Citi currently has a hold rating and $220.00 price target on the Cochlear share price.

The post Top broker sees 19% upside in the Cochlear (ASX:COH) share price appeared first on The Motley Fool Australia.

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• Why APN Industria, Centuria Industrial, Cochlear, & Perseus Mining are tumbling
• Which ASX 300 shares are the major movers at the end of the week?
• ASX 200 (ASX:XJO) midday update: Telstra buys Vita stores, Cochlear sinks

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 Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Cochlear 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is up 0.6% in early morning trade today, at $27.67 per share.

Despite that gain, the big bank’s shares remain down 1.6% since we commenced the second quarter of the 2022 financial year (Q2 FY22) last Friday.

With the first quarter of FY22 now come and gone, we take a look at how the ANZ share price moved over those 3 months.

What happened with the ANZ share price in Q1 FY22?

The ANZ share price kicked off Q1 FY22 by closing at $28.15 on 30 June.

Three months later, by the closing bell on 30 September, shares were worth $28.15.

I’ll let you do the maths there.

The big bank finishing the quarter flat was largely in line with the broader S&P/ASX 200 Index (ASX: XJO), which notched a slender 0.3% gain over the 3 months.

It wasn’t all smooth sailing for shareholders.

The ANZ share price hit a closing high of $29.53 on 13 August and a closing low of $27.09 on 22 September. That’s more than an 8% price swing.

What were investors considering over the quarter?

There were a number of factors impacting the ANZ share price over Q1 FY22.

Tailwinds leading up to the 13 August high included improved investor sentiment across the wider banking sector, spurred by some $10 billion in dividends and share buybacks by Commonwealth Bank of Australia (ASX: CBA).

Another positive looks to have been ANZ’s appointment of Farhan Faruqui as its new Chief Financial Officer (CFO).

As the Motley Fool noted at the time, “ANZ’s management highlighted Mr Faruqui’s accomplishments and experience, painting a positive outlook for the bank’s future.”.

On the flip side, general market weakness over the quarter certainly didn’t help the bank’s performance.

There was also a bearish broker note out just before ANZ’s share price hit its 21 September closing low, along with concern about the bank’s mortgage book.

As the Motley Fool noted on 21 September, broker Citi released a note with a sell rating on ANZ and a price target of $28 per share.

My Fool colleague Nikhil reported in his article that, “According to analysts, recent APRA data indicates a sharp contraction in ANZ’s mortgage book. … According to the commentary, moderation in volume and housing growth could slow near-term growth prospects for the big banks.”

The post What happened for the ANZ share price in the FY22 first quarter? appeared first on The Motley Fool Australia.

More reading

• ASX 200 bank shares fall flat amid flurry of new regulations
• Why the ANZ (ASX:ANZ) share price has lagged the ASX 200
• 5 things to watch on the ASX 200 on Monday
• How does the Westpac (ASX:WBC) dividend compare to the banking sector?
• Top brokers name 3 ASX shares to sell next week

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 Collins Foods Ltd (ASX: CKF) share price is lifting during morning trade on Thursday. This comes after the KFC restaurant operator provided investors with a positive update in regards to a corporate franchise agreement.

At the time of writing, Collins Foods shares are up 5.59% to $12.65.

Collins Foods expands KFC network

According to today’s statement, Collins Foods’ Netherlands business has signed an agreement with KFC Europe, a division of Yum! Brands Inc.

Under the corporate franchise agreement, Collins Foods will become KFC’s corporate franchisee in the Netherlands. This means Collins Foods has the rights to develop, manage, market, support, and operate the KFC business in the country.

The agreement provides a framework for the development of up to 130 new KFC restaurants over a 10-year period. These stores will be a mix of independent franchisees and company-owned restaurants.

The corporate franchise agreement will supersede the current Netherlands development agreement that is currently in place.

In the new deal, Collins Foods will receive a fee from KFC towards the costs of running the market. Extra incentives have also been added by KFC Europe through meeting various objectives relating to development and other performance measures.

The agreement will run over a 5-year period and come into effect on 31 December 2021, pending approval of conditions.

Managing director and CEO Drew O’Malley commented on the deal possibly driving the Collins Foods share price:

Today’s announcement marks a true milestone in the progression of Collins Foods’ strategy in Europe. The corporate franchise agreement in the Netherlands is an exciting opportunity that allows us to more fully leverage our scale, experience, and operational capabilities in Europe for the benefit of both the company and the KFC brand.

We believe there is substantial opportunity for restaurant growth in the Netherlands, given KFC’s low penetration rate relative to developed markets and other Quick Service Restaurant brands. Further, our current management team for Europe has an excellent track record in the QSR sector and with KFC, and this is a natural extension for them and our business.

About the Collins Foods share price

Over the past 12 months, the Collins Foods share price has travelled higher to post an almost 20% gain for the period. In 2021 its shares are up around 30%.

Collins Foods presides a market capitalisation of roughly $1.45 billion, with approximately 116.7 million shares on issue.

The post Why is the Collins Foods (ASX:CKF) share price climbing 5% today? appeared first on The Motley Fool Australia.

More reading

• 2 growing ASX dividend shares to buy
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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 recommended Collins Foods 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 Pilbara Minerals Ltd (ASX: PLS) share price is up by 2.14% to $1.91 in early trading on Thursday.

This follows a positive announcement from the company that commissioning has begun at its Ngungaju plant.

What did Pilbara Minerals announce?

The Pilbara Minerals share price is on the move following news that commissioning is now underway at the company’s Ngungaju Plant. This heralds the start of a staged ramp-up of this facility from care and maintenance.

Pilbara Minerals announced the acquisition of the Altura Mining Limited (ASX: AJM) project in October last year for $175 million. The company then renamed the project Ngungaju.

The transaction occurred when lithium prices were at multi-year lows, resulting in Altura falling into administration.

In late June, the company announced its final investment decision to restart Ngungaju operations.

Since then, the company has successfully completed its construction and maintenance acceleration program to bring forward additional production to capitalise on the lithium boom.

Commissioning of the coarse production circuit is now underway. Pilbara Minerals expects production to increase to approximately 180,000 to 200,000 dry metric tonnes (dmt) from mid-2022 onward.

It is understood that additional production from Ngungaju will allow for sales in the emerging spot market for spodumene concentrate.

This will include sales made through the company’s own recently launched Battery Materials Exchange digital sales platform.

In addition, Pilbara Minerals also reaffirmed its FY22 production guidance across the entire Pilgangoora Project at 460,000 to 510,000 dmt.

Management commentary

Pilbara Minerals’ CEO Ken Brinsden said the commencement of commissioning as part of the staged ramp-up at Ngungaju represents “another significant and exciting milestone in the rapid growth of the Pilgangoora Project”.

Brinsden said:

“Together with the improvement works being made to the Pilgan Plant (which are expected to soon increase production capacity from ~330ktpa to 360-380ktpa), Pilbara Minerals is firmly on track to achieve its goal of increasing annual spodumene concentrate production to 560-580,000tpa by the middle of next year.”

“With market conditions remaining extremely buoyant and the spodumene concentrate market continuing to show signs of being extremely short of supply, the Ngungaju Plant is expected to be capable of delivering uncommitted tonnes into the emerging spot market including through our BMX platform.

Pilbara Minerals share price snapshot

The Pilbara Minerals share price has lost steam in recent months, down almost 25% since mid-September.

It is currently lingering around 2-month lows, broadly in line with the S&P/ASX 200 Index (ASX: XJO).

The post Pilbara Minerals (ASX:PLS) share price higher on lithium project update appeared first on The Motley Fool Australia.

More reading

• Pilbara Minerals (ASX:PLS) share price flat despite resource upgrade and quarterly update
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• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Why is the Pilbara Minerals (ASX:PLS) share price down 10% in a week?

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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This week hasn’t been good to the Webjet Limited (ASX: WEB) share price.

The online travel agent’s stock roared higher on Monday, hitting a new 52-week high. Unfortunately, it has since tumbled.

The dip has come about despite renewed enthusiasm surrounding Australia’s return to travel and the nation’s vaccine rollout surpassing a key milestone.

At the time of writing, the Webjet share price is $6.28, 1.29% higher than its previous close but 3.08% lower than it was at Friday’s close. Additionally, it is currently 29% lower than its shiny new 52-week high of $8.89.

Let’s take a closer look at what’s been happening with the Webjet share price and Australia’s travel industry this week.

A bad week for Webjet but a good one for travel

The Webjet share price has been tumbling lower on a week full of good news for Australians in need of a holiday.

On Friday, Prime Minister Scott Morrison announced Australia’s international borders are set to reopen next month in line with some states allowing home quarantine.

When the order is officially given, Australians who are vaccinated against COVID-19 will be allowed to fly in and out of the country freely and quarantine for 7 days in their home on their return.

The number of unvaccinated travellers landing in Australia will continue to be capped. Those who don’t have both jabs on arrival will face 14-day of “managed” quarantine.

The Webjet share price surged 2.6% higher on Friday and was boosted by another 2.9% on Monday.

Only states that have a home quarantine system available will see international travel return.

On that note, ABC News has reported the Queensland Government is planning to begin a home quarantine trial.

According to the outlet, up to 1000 Queenslanders currently stuck in interstate hotspots will soon be allowed to return home. And at home, they will stay for the 14 days following their arrival.

Finally, several key vaccine targets have been met over the last 24 hours. 80.5% of Australians have now received one dose of a COVID-19 vaccine, while 58.4% are fully vaccinated.

Additionally, New South Wales’ brand new premier, Dom Perrottet, announced the state reached its 70% vaccination rate yesterday. Restrictions will ease in NSW on Monday and travel within the state will properly resume when it meets its 80% vaccination target.

Webjet share price snapshot

Despite all the good news, the Webjet share price has spent the last 2 sessions in the red. Though, it’s still recording strong long-term gains.

Right now, the company’s share price is 20% higher than it was at the start of 2021. It has also gained 47% since this time last year.

The post It hasn’t been a great week so far for the Webjet (ASX:WEB) share price appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Why ASX 200 travel shares are having a bumper day
• Up 5%, the Webjet (ASX:WEB) share price is back to March 2020 levels. Here’s why
• Here’s why the Webjet (ASX:WEB) share price gained 29% last quarter
• Why the Webjet (ASX:WEB) share price is on the rise today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet 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 Qube Holdings Ltd (ASX: QUB) share price is in the red after the Australian Consumer and Competition Commission (ACCC) announced it is investigating the company’s latest acquisition.

According to the watchdog, it previously requested Qube delay its recent acquisition of the Newcastle Agri Terminal while it investigated its potential competitive impact. However, Qube went ahead and finalised the purchase late last month.

Now, the ACCC has now begun a law enforcement investigation into the potential impacts of the acquisition.

At the time of writing, the Qube share price is $3.27, 0.61% lower than its previous closing price.

Let’s take a closer look at the drama that has unfolded today.

Quick refresher

Qube is an import and export logistics services provider.

It owns and operates grain storage sites in New South Wales’ Orana Region and supplies rail haulage in the state. Qube also owns and operates the Quattro bulk grain terminal in Port Kembla.

On top of its other New South Wales-based grain operations, the company recently acquired the Newcastle Agri Terminal for $90 million. The Newcastle Agri Terminal is a grain export hub.

The Qube share price gained 4.5% when the company announced the acquisition. The purchase was completed on 30 September despite the ACCC calling for it to be delayed.

The news driving the Qube share price today

Today, the Qube share price is falling as the ACCC embarks on an enforcement investigation into the company’s latest acquisition.

According to the competition watchdog, numerous industry participants approached it with concerns about the impact of Qube’s acquisition.

The ACCC has now begun an investigation into Qube’s new vertically integrated position in the supply chain of bulk grain.

The body will be looking into Qube’s potential to engage in anti-competitive behaviour, such as bundling storage, handling, and transport with terminal services. It’s also concerned about Qube’s ability to discriminate against its rivals.

If the acquisition is found to be anti-competitive, the ACCC could order Qube to divest the Newcastle Agri Terminal or declare the transaction void. The watchdog could also seek penalties for the unapproved acquisition.

ACCC’s chair Rod Sims commented on the news driving the Qube share price today, saying:

It is worrying when a major vertically integrated player pays $90 million for key infrastructure used for the export of agricultural products without first obtaining the ACCC’s view on whether the proposed acquisition is likely to have the effect of substantially lessening competition.

The post Qube (ASX:QUB) share price falls amid ACCC enforcement investigation appeared first on The Motley Fool Australia.

More reading

• These 5 ASX 200 shares are going ex-dividend this week
• The Qube (ASX:QUB) share price is on a rollercoaster this week
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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 Calix Ltd (ASX: CXL) share price is charging notably higher on Thursday morning.

At the time of writing, the clean technology company’s shares are up 10% to $5.24.

This means the Calix share price is now up over 400% since the start of the year.

Why is the Calix share price charging higher today?

Investors have been bidding the Calix share price higher today following the release of a positive announcement.

According to the release, Calix and its LEILAC (Low Emissions Intensity Lime And Cement) project consortium have released their final output report.

The LEILAC project is developing a new technology, aiming to enable the cement and lime industries to capture unavoidable CO2 emissions released from the raw limestone.

What’s the latest?

According to the release, the report includes a techno-economic study and a variety of scenarios investigating the costs associated with the technology. This includes different energy sources, such as renewable electricity, and synergies with other capture technologies, based on the validated results of LEILAC-1 Pilot and LEILAC-2 pre-FEED engineering.

The company notes that several development and scale-up steps are required to fit a complete LEILAC system to a cement plant.

However, it highlights that, in theory, as there is minimal energy requirements and relatively small capex, a full scale fully developed LEILAC facility capture costs are expected to be in the range of around 14 to 24 euros per tonne of CO2 avoided. This is the lowest reported of any technology and still has scope for further reduction in cost.

Based on this, it is estimated that future, fully developed and full scale retrofit LEILAC installations using waste fuel could achieve full chain CCS abatement costs (capture, transport, storage, including CAPEX costs) of around 39 euros per tonne of CO2 avoided. Around half of these costs relate to transporting and storing the CO2, and nearly a quarter to the capital and operating costs associated with CO2 compression.

In summary, the company believes the LEILAC technology (both alone and alongside other decarbonisation methods) can enable net zero production of lime and cement at a low cost.

Judging by the Calix share price performance today and in 2021, investors appear excited that this technology could be a game changer in the cement industry.

The post Why the Calix (ASX:CXL) share price is shooting 10% higher today appeared first on The Motley Fool Australia.

More reading

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• Here are the 3 hottest ASX shares to buy right now: expert

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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