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Shares in Karoon Energy Ltd (ASX: KAR) are heading south today. This comes after the energy company released its full-year results for the FY21 financial year.

The Karoon share price is trading at $1.37 apiece, down 6.69% at the time of writing, after sinking to an intraday low of $1.30 this morning.

Karoon share price falls on record result

Some of last week’s gains in the Karoon share price have been erased today despite the company’s robust result for the 12 months ending 30 June 2021. Here are the key highlights:

• Oil production totalled 3.14 million barrels (MMbbl), since Karoon’s acquisition of the Baúna oil field in Brazil on 7 November 2020
• Sales revenue from the cargoes lifted came to US$170.8 million
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) jumped to $9.8 million, compared to a loss of $85.4 million in FY20
• Underlying net profit after tax (NPAT) surged to $33.4 million, against FY20’s $65.2 million loss
• No final dividend declared by the board.

What happened in FY21 for Karoon?

Karoon’s new phase as an oil producer delivered a strong performance against a backdrop of the unprecedented COVID-19 pandemic.

The company sold 6 oil cargoes totalling 2.9 MMbbl from Baúna under its oil marketing agreement with Shell. The weighted average realised price of the contract came to US$59/bbl, net of selling expenses.

Crude oil sales revenue from the cargoes lifted stood at US$170.8 million, resulting in a gross profit of US$59.4 million.

The company said operating activities generated cash inflows of US$29.8 million, compared to cash outflows of US$67.1 million in the previous financial year.

Management noted that the results were supported by the macro-oil environment. Oil prices increased from US$45/bbl to more than US$70/bbl during the year. With no hedging in place over the year, Karoon benefited from the oil price strength, ending the year in a robust financial position.

The company had cash and cash equivalents of US$133.2 million for the end of June.

What did management say?

Karoon CEO and managing director Dr Julian Fowles touched on the milestone achievement, saying:

The 2021 financial year has been transformational for Karoon.

Following the acquisition of the Baúna oil field in Brazil in November 2020, the company has now entered a new era as a material oil producer and operator.

A strong emphasis on safety and reliability, coupled with operating and financial discipline, has enabled Karoon to safely deliver a strong underlying profit from our first eight months as an oil producer.

What’s next for Karoon?

In FY22, Karoon expects Baúna production to be in the range of 4.2 MMbbl to 4.6 MMbbl. Unit production costs are forecasted at US$28 to US$32/bbl, with unit depreciation and amortisation of between US$12 and US$13/bbl.

With production costs largely fixed, the company expects unit production costs to increase, reflecting lower production rates in FY2022.

Unit depreciation and amortisation are expected to remain largely unchanged.

Dr Fowles discussed the outlook for FY22:

Our highest priority in FY2022 will be on continuing to deliver safe and reliable production from the Baúna concession while we focus on progressing the Baúna intervention and Patola projects, on time and on budget, and implementing the Strategic Refresh initiatives.

The company expects to fund investment expenditures from existing cash, cash flow and drawdowns from Karoon’s US$160 million debt facility.

The post Karoon Energy (ASX: KAR) share price sinks despite record profit appeared first on The Motley Fool Australia.

More reading

• Why is the Fenix Resources (ASX:FEX) share price crashing 27% today?
• Cettire (ASX:CTT) share price leaps another 7%, up 82% in a month
• Why the FAR (ASX:FAR) share price is crashing 50% on Monday
• 2 COVID-19 ASX shares that could be buys
• Novonix (ASX:NVX) share price leaps to another new all-time high

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 Fenix Resources Ltd (ASX: FEX) share price opened to a rude awakening on Monday, down 27% to a 6-month low of 21.5 cents.

What’s driving the Fenix Resources share price?

Fenix Resources shares went ex-dividend this morning for a whopping fully-franked 5.25 cents per share.

Any investors that held Fenix Resources prior to the ex-dividend date will be eligible to receive the dividend payment on Tuesday, 5 October.

Based on last Friday’s prices of 29.5 cents, this represents a dividend yield of 17.8%.

Double-digit dividend yield? How?

Fenix Resources had a breakthrough FY21, dispatching its maiden shipment of iron ore in February 2021.

Before today’s fall, the Fenix Resources share price was up 25% year-to-date and 100% in the past 12-months.

According to its annual report, the company shipped a total of 0.501 million wet metric tonnes of iron ore which helped it generate a net profit after tax of $49.0 million.

Fenix Resources currently has a market capitalisation of just ~$140 million.

This means that based of FY21 net profit, it’s trading at a price-to-earnings of just 2.85.

Perhaps what’s more encouraging for the iron ore junior is the fact that it’s managed to hedge its iron ore sales at A$230.30/dry metric tonne for the next 12-month period.

From October 2021 to September 2022, the company entered into iron ore swap agreements for 50,000 tonnes per month.

Fenix managing director Rob Brierley commented on the hedge, saying:

The iron ore swap arrangements were foreshadowed in our … quarterly activities report for the June 2021 period. We are effectively locking in ~45% of our planned production during a 12-month period commencing October 2021, at a fixed price that is sufficient to cover the majority, if not the entirety, of our budgeted cost base.

This might explain why the Fenix Resources share price is down 5.4% year-to-date compared to Fortescue Metals Group Limited (ASX: FMG) which has plunged 42% this year.

The post Why is the Fenix Resources (ASX:FEX) share price crashing 27% 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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The Cettire Ltd (ASX: CTT) share price is soaring again today despite no news having been released by the company.

The Cettire share price has gained another 6.61% today to trade at $3.87. That leaves it 81.69% higher than it was this time last month.

Let’s take a look at what’s driving the ASX newbie’s stock higher lately.

What is Cettire?

If you’re not familiar with Cettire, it’s an online luxury goods retailer.

As my Foolish colleague recently reported, the company is reportedly backed by some of Australia’s richest individuals.

Interestingly, Cettire doesn’t hold its own inventory. Instead, most goods sold on its platform are shipped directly from Cettire’s suppliers.

Cettire listed on the ASX in December 2020. Under its prospectus, shares in the company were offered for 50 cents apiece.

What’s driving the Cettire share price higher?

That, dear market watcher, is a good question.

Cettire hasn’t released any price-sensitive news to the ASX since its financial year 2021 earnings.

Over financial year 2021, Cettire’s gross revenue quadrupled to outperform its guidance by 40%.

However, Cettire’s net profit after tax dropped to a $251,000 loss for financial year 2021. The previous financial year, the company reported a $1.5 million after-tax profit.

The Cettire share price gained 2.7% on the back of its results and another 49% since.

Additionally, the company announced it had migrated its e-commerce storefront from a third-party platform to its own software last month.

According to Cettire, the change will increase the site’s performance, flexibility, and functionality.

Cettire’s Founder and CEO Dean Mintz commented the software will support its rapidly growing customer base, product offerings, and suppliers.

And, indeed, the company’s business is certainly growing in all the above metrics. Further, the Cettire share price might be getting a boost from the company’s impressive growth.

In financial year 2021, the number of active customers shopping on Cettire increased by 285% with 40% of the company’s revenue coming from repeat customers. In addition, Cettire added 78,000 new products to its site, bringing its total number of purchasable products to more than 190,000 from 1,700 brands.

The post Cettire (ASX:CTT) share price leaps another 7%, up 82% in a month 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. owns shares of and has recommended Cettire Limited. The Motley Fool Australia has recommended Cettire 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 FAR Ltd (ASX: FAR) share price is one of the worst performers on the Australian share market on Monday.

In afternoon trade, the oil and gas explorer’s shares are down a massive 50% to 75 cents.

Why is the FAR share price crashing today?

The good news for shareholders is that the decline in the FAR share price has nothing to do with its performance or commodity prices.

Instead, this decline has been driven by the company’s shares trading ex-capital return this morning. This follows shareholders voting to approve a capital return last month at a general meeting.

What’s happening?

Last month the company’s shareholders gave the thumbs up to an $80 million return via a cash capital return of 80 cents per share.

This capital return was proposed following the completion of the sale of its interest in the RSSD Project to Woodside Petroleum Limited (ASX: WPL) for US$126 million.

Management advised that the $80 million return represents surplus capital and leaves the company with sufficient funding for its drilling offshore The Gambia and for ongoing purposes.

Eligible shareholders can now look forward to receiving this capital return next week on 28 September.

What now?

If you were to take this capital return out of the equation, the FAR share price would actually be trading 6 cents higher today.

For example, the FAR share price is down 74 cents or 50% to 75 cents. Whereas the capital return is for 80 cents.

This appears to be an indication that some investors are confident in the direction the company is taking with its drilling campaign off the coast of The Gambia. This includes the Bambo-1 well which is targeting a combined best estimate of 1.118 billion barrels of oil.

This could make FAR one to watch in the energy sector in FY 2022.

The post Why the FAR (ASX:FAR) share price is crashing 50% on Monday appeared first on The Motley Fool Australia.

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• Cettire (ASX:CTT) share price leaps another 7%, up 82% in a month
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• Novonix (ASX:NVX) share price leaps to another new all-time high
• Origin (ASX:ORG) share price slides amid moves into green hydrogen
• The Immutep (ASX:IMM) share price is up 25% in a month and could go 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. 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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There are some COVID-19 ASX shares that may be worth thinking about at the current prices with the growth they are creating.

It has been a difficult time over the last year and a half, however some companies have experienced elevated levels of growth.

Whilst certain industries are seeing a reversal of that strong sales growth, others are still seeing elevated levels of demand, like these two:

Sonic Healthcare Ltd (ASX: SHL)

Sonic is one of the world’s largest pathology businesses with a market capitalisation of just over $20 billion according to the ASX.

It says that it’s playing a crucial role in combating the COVID-19 pandemic in its markets, whilst continuing to provide its usual essential healthcare services. A total of around 138 million patients were served globally in FY21.

Approximately 30 million COVID-19 PCR tests have been performed to date in around 60 Sonic laboratories globally, and Sonic has become Australia’s largest non-government COVID vaccination provider. It has generated “significant” revenue and earnings in FY21 from COVID-19 testing.

The COVID-19 PCR test volumes were lower in the second half of FY21 compared to the first half, though volumes were increasing with the spread of the Delta variant.

In FY21, Sonic’s revenue increased by 28% to $8.8 billion and net profit rose 149% to $1.3 billion thanks to increased operating leverage and utilising existing assets and people. Excluding COVID testing, revenue was up 6% compared to FY20 and 4% compared to FY19.

The ASX COVID-19 share also grew its FY21 annual dividend by 7%.

Sonic is looking to spend some of its elevated profit on finding acquisitions and contracts that will help lock in growth compared to the pre-pandemic business.

At the current Sonic share price, it’s valued at 20x FY22’s estimated earnings.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is down around 12.5% since the end of August 2021, which is when it released its statutory FY21 result.

The e-commerce retailer had already told investors near the end of July 2021 how it had performed in FY21.

But investors got an insight into the trading performance of the business in FY22 to 27 August 2021. It said that year on year revenue growth for the first few weeks of the current financial year was 49%.

Management pointed to a few different tailwinds that are helping the business. It noted the ongoing adoption of online shopping due to structural and demographic shifts, an acceleration of these trends due to COVID-19, an increase in discretionary income due to travel restrictions and strong housing market growth.

In FY21, despite strong investing for growth, Temple & Webster saw full revenue growth of 85% to $326.3 million and normalised net profit after tax (NPAT) jumped 165% to $14 million.

The COVID-19 ASX share is looking to invest in a number of areas to improve the customer experience as well as increase product ranges and become more efficient. The earnings before interest, tax, depreciation and amortisation (EBITDA) margin is expected to be low in the next few years as it pursues this heavy investment strategy.

The post 2 COVID-19 ASX shares that could be buys appeared first on The Motley Fool Australia.

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The Novonix Ltd (ASX: NVX) share price is soaring to another new all-time high.

At time of writing, the ASX lithium-ion battery company is trading for $6.22 per share, up 3.67% in intraday trading, having earlier posted gains of more than 8%.

Below, we look at what been driving the Novonix share price to a series of new records.

What’s driving the extended run higher?

The Novonix share price has set a number of new record highs over the past month.

While there are company specific factors helping drive the company’s valuation higher, it also looks to be benefiting from rapid growth in the demand outlook for lithium-ion batteries. These are among the top options to power the expected explosion in electric vehicles (EVs) numbers over the coming years.

In the first 2 weeks of September alone, booming demand for lithium saw technical and battery grade lithium carbonate prices rocket by more than 20% in the Chinese domestic market, according to data from Bench Mark Minerals.

Battery grade lithium prices have now soared 215% in 2021.

As for the Novonix share price? It’s up 408% in 2021.

Another tailwind for Novonix shares is the reshuffle in the S&P/ASX Indices announced by S&P Dow Jones a few weeks ago. That reshuffle sees Novonix join the S&P/ASX 300 Index (ASX: XKO), effective as of market open this morning.

Its inclusion in the ASX 300 may not directly impact retail investors. However, it will open the door to some institutional funds which are limited to investing in the top 300 ASX shares.

Novonix share price snapshot

It’s been a banner year for Novonix investors, with shares up 408% year-to-date and 72% in the past month alone.

By comparison, the All Ordinaries Index (ASX: XAO) is up 9% in 2021.

The steady run higher has seen Novonix’s market capitalisation exceed $2.4 billion.

The post Novonix (ASX:NVX) share price leaps to another new all-time high appeared first on The Motley Fool Australia.

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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 Origin Energy Ltd (ASX: ORG) share price has stepped into the red from the opening of trade on Monday.

Origin shares are now exchanging hands at $4.365 apiece, a slight dip into the red from the market open.

Let’s take a closer look at what’s at play here.

What’s up with the Origin Energy share price today?

Origin Energy’s share price is on the move despite there being no market-sensitive news for the company today.

However, one factor that could be weighing in is the company’s continued push into renewables, specifically green hydrogen.

It’s a funny-sounding name – “green hydrogen” – but it simply refers to hydrogen fuel made from renewable energy instead of fossil fuels.

For those interested in the technical side, it is hydrogen fuel obtained from the electrolysis of water where electricity is generated through low carbon/renewable sources. Obtaining hydrogen this way supposedly only leaves oxygen as the by-product, versus other nasty wastes.

The end product, along with its derivatives, is then used for things like electricity and transportation fuel.

Origin’s play comes amid a wave of interest from ASX resources names in developing green commodities.

Zooming out, it’s clear the wider trend has seen ASX energy and resource companies divesting and/or pivoting away from fossil fuels, re-investing instead into renewable energy solutions.

This appears to be related to a combination of government mandated actions and in alignment with the Paris Agreement on Climate Change.

Strengths in the broader commodity markets in 2020–21 have lead to resource and energy companies generating high margins and equally as high cash flow over FY20–21. As such, they have free cash on the books ready to spend.

So, in a bit of a paradox, the recent trend of ASX energy and resource companies investing heavily into renewables is somewhat fuelled by strengths in underlying “fossil fuels” commodity markets.

What does all this mean for Origin Energy’s share price?

Origin commenced a $3.2 million feasibility study into building an “export scale green hydrogen and ammonia plant” in Tasmania back in November 2020.

Origin’s proposal indicates it will produce green hydrogen in Bell Bay, Tasmania, from “sustainable water using sustainable energy”.

This hydrogen will then be processed with nitrogen to create “green ammonia” which Origin intends to sell for export.

The “greater than 500-megawatt plant” has a capacity to produce 420,000 tonnes of green ammonia each year and could cost up to $1 billion.

The feasibility study is nearing completion in December 2021 and Origin is gearing up to pull the levers on its Bell Bay venture, pending the study results.

Speaking to The Australian, Origin head of future fuels and growth, Tracey Boyes, said the company’s first steps into green hydrogen were “definitely about learning and not making a loss”. That sounds about right in business acumen terms.

Boyes expects with the “first few projects, (it) won’t be making millions of dollars”, acknowledging that Origin “wouldn’t be expecting as high a return at any rate” on the green projects.

However, Origin is seeing past the numbers in its step into renewables, with Boyes’ stating the reason hydrogen is interesting for the industry is “because of (its) decarbonisation in many ways”.

Foolish takeaway

Origin Energy is gradually pivoting into renewable energy solutions, much like several of its ASX-listed energy and resource peers.

Origin’s push is into green hydrogen and ammonia. It has a feasibility study on a site in Tasmania that is nearing completion in December 2021. The outcomes of the study are yet to be heard.

This could have an impact on the Origin Energy share price, which has struggled this year to date and posted a loss of 8%.

The post Origin (ASX:ORG) share price slides amid moves into green hydrogen appeared first on The Motley Fool Australia.

More reading

• Why the Origin Energy (ASX:ORG) share price is climbing on Tuesday
• Why is the ASX share market down today?
• These ASX 200 shares are trading ex-dividend today
• These ASX 200 dividend shares slashed their payouts in August
• How does the AGL (ASX:AGL) earnings result compare to Origin?

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 Immutep Ltd (ASX: IMM) share price is pushing higher again on Monday despite the market decline.

At the time of writing, the biotechnology company’s shares are up almost 4% to 55 cents.

This means the Immutep share price is now up 25% in the space of a month.

Why is the Immutep share price charging higher this month?

Investors have been bidding the Immutep share price higher in recent weeks following a series of positive updates.

One of those was the announcement of the grant of a patent in China in late August. This patent relates to LAG525, which is a humanised form of Immutep’s IMP701 antibody which is out-licensed to Novartis.

The company followed this up a few days later with another announcement relating to its Chinese operations. The release explains that its Chinese partner for eftilagimod alpha (efti), EOC Pharma, is planning to expand its clinical trial pipeline.

EOC Pharma is preparing to initiate a clinical trial of efti in combination with an anti-PD-1 therapy. The new trial builds on the latest promising data presented by Immutep at ASCO 2021 and on previously announced Phase II trial evaluating efti in combination with chemotherapy in metastatic breast cancer patients.

And then finally, earlier this month the company revealed that the last patient has been enrolled and safely dosed in its Stage 2 of Part B of its Phase II TACTI-002 study.

This study is being conducted in collaboration with Merck & Co. It is evaluating the combination of efti with Merck’s Keytruda product in up to 183 patients with second line head and neck squamous cell carcinoma or non-small cell lung cancer in first and second line.

Immutep expects to report further data from TACTI-002 at a scientific conference in calendar year 2021 or early calendar year 2022.

Are its shares good value?

Despite the strong gain by the Immutep share price over the last few weeks, one leading broker believes it could still go higher.

According to a recent note out of Bell Potter, its analysts have a speculative buy rating and $1.00 price target on the company’s shares.

Based on the current Immutep share price, this implies potential upside of 82% over the next 12 months.

It commented: “We retain Buy (spec). Our hypothetical M&A valuation for IMM is revised to $1.48/sh, which helps ground our DCF valuation. IMM remains one of our key picks in the biotech space for FY22.”

The post The Immutep (ASX:IMM) share price is up 25% in a month and could go higher appeared first on The Motley Fool Australia.

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• Why the Immutep (ASX:IMM) share price is leaping 5% today
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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 92 Energy Ltd (ASX: 92E) share price has rocketed more than 43% in today session.

Shares in the uranium player have surged ahead after releasing a promising announcement earlier today.

Let’s take a look at why investors are pushing the 92 Energy share price higher today.

92 Energy share price soars on uranium discovery

Shares in 92 Energy have soared after announcing the discovery of a new zone of uranium.

The company released an announcement earlier today, noting new zones of uranium mineralisation at its Gemini Project.

92 Energy identified the zones from chemical assays of samples from a drill hole (GEM-004).

Mineralisation of 0.12% uranium oxide was intersected at 5.5 metres, including 1 metre at 0.28% uranium oxide.

The highest-grade assay within this sub-interval returned 0.36% uranium oxide at 0.5 metres.

92 Energy managing director Siobhan Lancaster noted;

To identify 5.5m of 0.12% U3O8 on the fourth drill hole of our inaugural drilling program is an extraordinary result for 92 Energy. The success of this program is testament to our technically-driven strategy and the world-class exploration team that designed and delivered this program.

Importantly, the company’s management also noted that the drill assays showed similarities to other early holes at major Athabasca Basin uranium discoveries.

92 Energy noted that follow up drilling to determine the extent of mineralisation is due to begin in the Canadian winter.

More on 92 Energy

92 Energy is an Australian uranium exploration company with its main interest in the Athabasca Basin, Saskatchewan, Canada.

The uranium player has a 100% interest in its 28 mineral claims in the Athabasca Basin, which lie in its five projects; Gemini, Tower, Clover, Powerline Creek and Cypress River.

92 Energy’s Gemini project lies southeast of the McArthur River uranium mine, which is one of the largest uranium deposits in the world.

92 Energy listed on the ASX on 15 April after successfully raising $7 million at 20 cents per share.

Since its IPO, shares in the uranium player have soared more than 400%.

In addition to today’s news, the 92 Energy share price has also been fuelled by surging uranium spot prices.

At the time of writing, shares in the uranium player are trading 23% higher for the day.

The 92 Energy share price was up more than 43% earlier after hitting an intra-day and record high of $1.15.

The post 92 Energy (ASX:92E) share price rockets 43% on uranium discovery appeared first on The Motley Fool Australia.

More reading

• Why ASX uranium shares are diving double-digits on Monday
• ASX uranium shares boom to multi-year highs, bull market is just getting started: analyst
• 92 Energy (ASX:92E) share price jumps 11%, up 400% since IPO. Here’s why.
• Is there a uranium ETF listed on the ASX?
• ASX uranium shares are booming double digits across the board on Monday. Here’s why.

Motley Fool contributor Nikhil Gangaram 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 Culpeo Minerals Ltd (ASX: CPO) share price soared a massive 41.18% this morning before the company was handed a speeding ticket.

Before entering a trading halt on the back of the ASX’s warning, Culpeo released news of a diamond drilling program.

The ASX newbie listed on the exchange less than a fortnight ago. Since then, Culpeo’s stock has gained an impressive 56.5%.

Right now, the Culpeo share price is 36 cents. It will remain frozen there for the near future.

Let’s take a look at what’s going on with the copper exploration and development company’s shares today.

Culpeo’s stock sparks suspicion

The Culpeo share price is currently frozen following its 41% surge this morning.

Before market open on Monday, Culpeo had announced news of the first drilling program at its flagship Las Petacas Copper Project, located in Chile’s Atacama Desert.

The program will test zones of known high-grade copper mineralisation, as well as recently defined, high priority geophysical targets.

Culpeo already found new zones of visible surface copper mineralisation while it was constructing its drill pad.

On open, the Culpeo share price took off, apparently prompting the ASX to smell a rat.

In the 16 minutes between the market opening on Monday and the ASX pausing trade of Culpeo’s stock, a whopping 2.45 million of the company’s shares were traded.

For context, that’s approximately 4.4% of Culpeo’s outstanding shares.

Culpeo has since entered a trading halt. Right now, it’s preparing to respond to the speeding ticket and extraordinary levels of trade.

It has until the ASX opens on Wednesday to craft a response, otherwise its shares will be put back into circulation without word from the company.

Culpeo share price snapshot

The Culpeo share price is currently 56% higher than it was at the end of its first day on the ASX and 80% higher than its prospectus’ offer price of 20 cents apiece.

At its current share price, the company has a market capitalisation of around $19.8 million. Culpeo has approximately 55.19 million shares outstanding.

The post Culpeo (ASX:CPO) share price rockets 41% prior to speeding ticket 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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