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ASX uranium shares are going nuclear after uranium spot prices jumped to 9-year highs of US$48/lb according to S&P Global Platts. A month ago, uranium was fetching for just ~US$30/lb.

ASX uranium shares going parabolic

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) has surged 115% to fresh 9-year highs in the past month.

The gains have tricked all the way down to small cap explorers such as 92 Energy Ltd (ASX: 92E) and Peninsula Energy Ltd (ASX: PEN), which have both more than doubled since August.

Even after a 60% jump in uranium prices, some analysts think that the uranium market has more legs to run.

What’s driving uranium?

The recent jump in ASX uranium shares and spot prices has largely been driven by Sprott Inc’s Physical Uranium Trust, listed on Canada’s Toronto stock exchange.

The fund has been actively buying physical uranium off the spot market, driving demand and tightening supply.

Kitco reported that the fund has bought 24 million pounds of uranium since mid-August, representing “about 14% of global reactor consumption”.

Kitco also highlighted that the “new demand in the marketplace has attracted new momentum players to the market, including retail investors from Reddit’s WallStreetBets, a popular financial discussion forum.”

Uranium market is “just leaving the station”

According to Kitco, some analysts have likened the uranium market as “a freight train that is just leaving the station as growing demand in a relatively tight market sparks a surge in prices.”

In an interview with Kitco News, Waaren Irwin, founder of Rosseau Asset Management said “the supply and demand outlook for uranium looked fantastic before Sprott came into the market.”

“The trust has come in and moved the inevitable rally forward a year or two.”

Irwin said that uranium plays into the global shift towards renewables and green energy. And that uranium demand will continue to grow on the backdrop of tight supply.

The post ASX uranium shares boom to multi-year highs, bull market is just getting started: analyst appeared first on The Motley Fool Australia.

More reading

• The Paladin Energy (ASX:PDN) share price rockets 5% to 9-year high. Here’s why
• 92 Energy (ASX:92E) share price jumps 11%, up 400% since IPO. Here’s why.
• Is there a uranium ETF listed on the ASX?
• Why are ASX uranium shares in focus today?
• Which ASX 300 shares are on the move mid-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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It has been another positive day for the Zoom2u Technologies Ltd (ASX: Z2U) share price on Thursday.

The recently listed delivery management software provider’s shares jumped 28% to a record high of 83.5 cents this morning.

When the Zoom2u share price reached that level, it meant it had gained almost 320% since its IPO last Friday.

Why is the Zoom2u share price storming higher?

The catalyst for the rise in the Zoom2u share price today has been the release of an investor update.

According to the release, the company has signed its first enterprise customer for its Locate2u platform, Amart Furniture.

Zoom2u will provide Amart with access to the Locate2u software as a service (SaaS) technology platform for an initial 24-month term. After which, Amart will have the option to extend the term for a further two, 12-month periods.

Either party may terminate this agreement, with or without cause, upon 90 days’ written notice.

The release notes that Locate2u will enable Amart’s drivers to provide efficient and transparent delivery of products directly to the retailer’s customers.

However, it is worth noting that the revenue derived from the Amart agreement is not expected to have a material impact on the financial performance of the company in FY 2022. Though, that clearly hasn’t stopped investors bidding the Zoom2u share price materially higher today.

Anything else?

Also giving the Zoom2u share price a lift was news that it has entered into an agreement with Bing Lee for access to the Zoom2u Platform.

Bing Lee will use the platform to enable the fast delivery of selected goods to consumers.

The release notes that the agreement is based on Zoom2u’s standard customer contract and does not have a termination date. Zoom2u will receive standard transaction fees for each delivery completed for Bing Lee. It also stressed that there are no minimum delivery quantities pursuant to this agreement, nor is it an exclusive arrangement.

Finally, management advised that FY 2022 has started strongly. And while it acknowledges that lockdowns are supporting its growth, it remains “confident that it will continue to drive growth, delivering sustained operational performance for shareholders in FY22 and beyond.”

The post Why the Zoom2u (ASX:Z2U) share price is rocketing 28% higher today appeared first on The Motley Fool Australia.

More reading

• Zoom2u (ASX:Z2U) share price doubles on initial public offering

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 Jupiter Energy Limited (ASX: JPR) share price surged today after it signed a key infrastructure deal.

Such announcements don’t usually trigger such excitement among ASX investors. But the agreement will allow the junior oil explorer to unlock value in its Kazakh assets.

This explains the 123% surge in the Jupiter Energy share price to a more than one-year high of 7.8 cents at the time of writing.

Jupiter Energy share price surges on infrastructure deal

The binding framework agreement was signed with Kazakh registered Sleipnir Technologies. It sets a timetable for the development and lodgement of a detailed project development plan that will provide Jupiter Energy with the appropriate infrastructure to achieve 100% gas utilisation on the Akkar North (East Block), Akkar East and West Zhetybai oilfields.

Under Kazakh law, oil and gas wells can only be granted a Commercial Production License if they have the right infrastructure in place. Then only can the well operator sell to international markets.

Current output limited by license restrictions

Currently, Jupiter Energy can only sell oil to the Kazakhstan domestic market as it operates under a Trial Production Licence or during the “Preparatory Period” as it transitions to a full commercial license.

“During the ‘Preparatory Period’, Jupiter is able to produce from any well located on a field with an approved Commercial Production Licence without having the requisite gas utilisation infrastructure in place, only if all excess gas that is produced during production is used on the field for power, heating and the like,” said Jupiter Energy.

“Jupiter’s production is therefore already currently constrained on the Akkar North (East Block) and Akkar East fields as both fields are operating under ‘Preparatory  Period’ restrictions. 

“The West Zhetybai field has just commenced the approval process to transition from Trial Production to Commercial Production and when this approval process is complete, the West Zhetybai field will return to production, also under ‘Preparatory Period’ restrictions, until the appropriate 100% gas utilisation infrastructure is in place.”

Production output set to increase

The Akkar East and Akkar North (East Block) fields current produce around 225 barrels of oil a day. When the West Zhetybai field returns to production, the cumulative daily output from the three oilfields should increase to 340 barrels per day.

But following the successful commissioning of the gas utilisation infrastructure, Jupiter Energy should achieve cumulative daily production from the current wells of circa 700 barrels per day.

Additional oil production could then come from future, successful, drilling on the three fields.

Jupiter Energy and Sleipnir aim to lodge the project development plan with the the Kazakh Ministry of Energy by early 1Q 2022.

The big rise in the Jupiter Energy share price on Thursday pushes its one-year gain to 30%.

The post Why the Jupiter Energy (ASX:JPR) share price more than doubled today appeared first on The Motley Fool Australia.

More reading

• ASX 200 resources giants lift despite plummeting iron ore price
• Lotus Resources (ASX:LOT) share price jumps on rare earths update
• ASX uranium shares boom to multi-year highs, bull market is just getting started: analyst
• Why the Zoom2u (ASX:Z2U) share price is rocketing 28% higher today
• 3 exciting ASX tech shares to buy this month

Motley Fool contributor Brendon Lau 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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If you’re looking to add a bit of tech exposure to your portfolio, then you might want to look at the shares listed below.

Here’s why these tech shares could be top options:

Kogan.com Ltd (ASX: KGN)

The first tech share to look at is Kogan. It is an ecommerce company which has been benefitting greatly from the shift to online shopping. And while inventory issues hit its margins significantly in FY 2021, this is only expected to be a short term headwind. After which, Kogan and its businesses appear well-placed to benefit from the structural shift online.

Credit Suisse has an outperform rating and $14.06 price target on its shares. Its analysts remain confident in Kogan’s long term growth prospects.

PointsBet Holdings Ltd (ASX: PBH)

Another tech share to consider is PointsBet. It is a growing sports wagering operator and iGaming provider. PointsBet offers innovative sports and racing betting products and services via a scalable cloud-based platform. It currently operates in the ANZ and United States markets and has delivered significant growth in both. Positively, it is still only scratching at the surface of its massive opportunity in the lucrative US market.

Goldman Sachs is a big fan of PointsBet and currently has a buy rating and $14.75 price target on its shares. The broker believes it can grow at a rapid rate over the coming years.

Zip Co Ltd (ASX: Z1P)

A final tech share to look at is Zip. This buy now pay later (BNPL) provider has been growing at a rapid rate over the last few years thanks to the popularity of the payment method with consumers and merchants and its global expansion. Zip is now expanding its offering to give users access to savings accounts and even cryptocurrency.

The team at Jefferies are happy with the company’s strategy. Earlier this week, the broker put a buy rating and $8.28 price target on its shares. Jefferies believes Zip’s shares are cheap in comparison to its rivals.

The post 3 exciting ASX tech shares to buy this month appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Telstra unveils T25 strategy, Wesfarmers’ API offer
• PointsBet (ASX:PBH) share price falls amid ‘exclusive’ agreement
• Top broker says Zip (ASX:Z1P) share price can rise 22%
• Down 4%, why the PointsBet (ASX:PBH) share price is close to 12-month lows
• ASX 200 rises, Zip falls, Brambles 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 Kogan.com ltd, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Metal Hawk Ltd (ASX: MHK) share price has soared into the green today.

In early trade, the mining company’s shares shot up by more than 20% to 94 cents. However, at the time of writing, they are changing hands for 78.5 cents, a 3.3% gain on the previous close.

The moves come after the company released an investor presentation regarding its Berehaven Nickel project.

Let’s dive in to investigate further.

What did Metal Hawk announce in its investor update?

In what’s been deemed a positive for the Metal Hawk share price today, the company gave a more comprehensive overview of its “massive” nickel sulphide discovery at the Berehaven site.

Metal Hawk stated there is “tremendous further discovery upside” with little to no previous exploration at the tenure.

In fact, the Western Australia site was “predominantly held previously by gold companies”, as per the release.

Labelled the “Commodore Nickel Discovery”, Metal Hawk intersected a “massive nickel sulphide” discovery in its maiden reverse circulation (RC) drilling program at the site, at 144 metres in its 2nd hole.

The Metal Hawk share price has soared by more than 300% since the company announced this discovery. This makes sense too, given the recent price nickel has been fetching in the commodity markets.

Nickel is currently trading in line with 5-year highs achieved earlier this year in February, at more than US$19,600/tonne.

Metal Hawk also highlighted that it has “up to $9.75 million in joint venture (JV) expenditure across multiple projects”. It also has earn-in projects with Chalice Mining Ltd and Western Areas Mining Ltd to “fund aggressive exploration”.

Next up for the company is its diamond drilling program to commence on 21 October, with additional assay results also expected in “early October”. It appears to be a busy couple of months ahead for the company.

Metal Hawk share price snapshot

The Metal Hawk share price has exploded over the past few days, after the announcement of a key nickel discovery earlier in the week.

Prior to this, it was trading sideways, without much excitement either way.

Nonetheless, the Metal Hawk share price is up more than 300% over the past week. It is also up more than 200% this year to date.

The post Metal Hawk (ASX:MHK) share price jumps following investor update appeared first on The Motley Fool Australia.

More reading

• Metal Hawk (ASX:MHK) share price closes 265% higher on action-packed day
• Metal Hawk (ASX:MHK) share price explodes 256% on huge nickel discovery

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 Predictive Discovery Ltd (ASX: PDI) share price has struck proverbial gold. At the time of writing, shares in the gold miner are trading for 14.7 cents per share – up 8.89%.

The positive price rise comes after the company announced the discovery of a “high-grade” gold zone at one of its mines.

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

Predictive Discovery share price rises on latest announcement

In a statement to the ASX, Predictive Discovery released the results from 3 drill holes at its Bankan Gold Project in Guinea.

Highlights of these results included:

• a 26m wide ore with 7 grams of gold per tonne.
• a 17m wide ore with 5.9 grams of gold per tonne.
• a 38m wide ore at 3.6 grams of gold per tonne.

According to the company, “reinterpretation” of earlier holes and ongoing drilling in new holes have been recognised as high-grade gold deposits. The north-east zone of Bankan “continues to shape up” as a large gold deposit, according to the company. Average grades exceed 5 grams per tonne.

Going forward, 2 more drill sites are due to announce results as well extending the strike length of existing drill sites.

The Mineral Resource Estimate (MRE) process for NE Bankan and Bankan Creek is well underway and the MRE is expected to be released in late September 2021.

Management commentary

Predictive Discovery Managing Director, Paul Roberts, said

These exciting new results confirm that the NE Bankan central high-grade gold zone is persisting to 400 metres vertical depth over a strike length of more than 100m and has obvious potential to grow further both to the south and at depth.

Gold commodity price

While the price of gold is down 5.46% since the beginning of the year (US $1,794 per troy ounce as of writing), it’s down an even larger 7.67% over the last 12 months.

The website Trading Economics is forecasting the price of gold to fall to about US $1,765 per troy ounce by the end of the quarter and to about US $1,700 per troy ounce in 52-weeks’ time.

Predictive Discovery share price snapshot

Over the past 12 months, the Predictive Discovery share price has increased 110%. Year-to-date it is up an even greater 145%. This is despite the falling gold price.

Predictive Discovery has a market capitalisation of about $200 million.

The post Why the Predictive Discovery (ASX:PDI) share price is rocketing 9% appeared first on The Motley Fool Australia.

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• Metal Hawk (ASX:MHK) share price jumps following investor update
• Volpara (ASX:VHT) share price under spotlight on lung screening expansion
• Here’s why the DigitalX (ASX:DCC) share price is surging 7% today
• Here’s why the Beach Energy (ASX:BPT) share price is climbing today
• Ioneer (ASX:INR) share price plummets 16% after partnership news

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 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 Volpara Health Technologies Ltd (ASX: VHT) share price is in focus today after the ASX healthcare tech share announced it’s expanding in the lung screening industry.

What is Volpara doing?

Volpara told investors that it’s further expanding its footprint in the lung cancer screening market with a strategic partnership with Seattle-based lung AI company Precision Medical Ventures (PMV), which actually trades as RevealDx.

RevealDx was described as one of the leaders in the application of AI for lung nodule diagnosis (the task after detection) with its RevealAI-Lung offering.

Volpara has been operating in the lung cancer screening market for a couple of years after its acquisition of Seattle-based MRS Systems in June 2019. The company noted that its lung software is currently covering around 8% of the US market.

What is the advantage of working with RevealDx?

Volpara said that the partnership would enable lung cancer screening programs to have access to expanded services for patient reporting and tracking through to AI for detection and diagnosis.

It’s going to invest US$250,000 into RevealDx through a convertible note.

The ASX share is also going to receive non-exclusive rights to sell the RevealAI-Lung product into the US, a number of free licenses to seed the market, and exclusive rights to sell RevealAI-Lung into Australia and New Zealand.

Volpara will also have the right to appoint a board observer to the RevealDx board.

The company also said that RevealAI-Lung is CE marked and is working towards TGA and FDA clearance. It’s also seeking publication of two pivotal studies.

This partnership comes after the recent collaboration with a leading US lung imaging company, Riverain Technologies. The Volpara share price is relatively unmoved since that announcement earlier in September 2021.

How big is the lung screening opportunity?

According to RevealDx, the total available market for lung AI screening is estimated to be up to US$750 million globally in recurring revenue, once screening programs ramp up.

The Seattle business noted that early clinical data for RevealAI-Lung suggests that many cancers can be detected earlier by using the AI nodule analysis rather than waiting for a scan in a few months’ time, while simultaneously reducing false positives, with potentially significant cost savings. Those cost savings formed part of the estimate of the total global market.

The idea is to sell to payers and providers first, and then seek reimbursement in the US.

The Volpara CEO Dr Ralph Highnam said:

The benefits of lung cancer screening using low-dose computed tomography (CT) have become more widely accepted globally, with the US doubling the number of people eligible, and countries like Australia starting the process of scoping out nationwide programs. Despite the clear benefits of screening in reducing mortality, a major issue those programs face is the number of false positive nodules found not just in routine screening but incidentally while scanning for other diseases such as pneumonia. That differentiation of nodules is exactly what RevealDx has been focusing on.

This is a pivotal moment for lung cancer screening globally, and our involvement in it. The combination of RevealDx and Volpara and other parties will be as compelling in lung as Volpara is in the breast space today.

Volpara share price snapshot

Currently, the Volpara share price is down 0.4% at the time of writing.

That currently gives it a market capitalisation of $308 million.

The post Volpara (ASX:VHT) share price under spotlight on lung screening expansion appeared first on The Motley Fool Australia.

More reading

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• 3 small cap ASX shares to put on your watchlist this week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. 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 Digitalx Ltd (ASX: DCC) share price is soaring following the announcement of a new acquisition.

The technology and investment company has signed a business sale and asset agreement to acquire Sell My Shares, an online share trade execution service.

Following the company’s release, the DigitalX share price has gained an impressive 7.46%. Right now, shares in the company are swapping hands for 7.2 cents apiece.

Let’s take a closer look at the news driving the DigitalX share price higher today.

DigitalX’s new acquisition

The DigitalX share price is surging following news it is set to acquire Sell My Shares.

According to DigitalX, Sell My Shares represents a channel for it to obtain new customers. Sell My Shares has conducted $300 million worth of trades for 42,000 Australians since 2013.

The acquisition will cost DigitalX $1.64 million upfront. The company will also make a deferred $250,000 consideration subject to performance milestones.  

Following the acquisition, Sell My Shares will be integrated into DigitalX’s Drawbridge product.

Drawbridge provides listed companies with the means to manage internal trading of their securities.

DigitalX states the acquisition of Sell My Shares will see Drawbridge accelerate its commercial development and gain a compliant way for its customers’ employees to trade shares.

Additionally, the company noted it has identified several ways to better the Sell My Shares business and profitability. Some of the ways in which DigitalX plans to grow Sell My Shares include enhancing its market clearing and settlement technologies.

DigitalX share price snapshot

Despite today’s gains, the DigitalX share price has been struggling on the ASX lately.

It has fallen 28% since the start of 2021. However, it is currently 80% higher than it was this time last year.

At its current share price, the company has a market capitalisation of around $53.3 million. It has approximately 739 million shares outstanding.

The post Here’s why the DigitalX (ASX:DCC) share price is surging 7% today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Beach Energy (ASX:BPT) share price is climbing today
• Ioneer (ASX:INR) share price plummets 16% after partnership news
• ASX 200 (ASX:XJO) midday update: Telstra unveils T25 strategy, Wesfarmers’ API offer
• Fortescue (ASX:FMG) share price up as miner announces largest contract ever with Aboriginal group
• The Paladin Energy (ASX:PDN) share price rockets 5% to 9-year high. Here’s why

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 Beach Energy Ltd (ASX: BPT) share price has started strongly on Thursday. Shares in the Aussie oil and gas producer are up 3.27% in early afternoon trade despite no news from the company.

Why the Beach Energy share price is climbing today

It always pays to look at how the underlying commodity prices are moving when evaluating energy shares. In this instance, crude oil prices have jumped higher overnight.

Brent crude jumped 2.5% to US$75.46 per barrel while WTI crude climbed 3.1% to US$72.61 per barrel overnight.

That came as US government data showed higher than expected drawdowns on inventories coupled with expected demand increases as the global economy re-opens.

The Beach Energy share price has been one beneficiary of the news and is on the move on Thursday. It comes after a tough period for shareholders who have watched the company’s valuation slump 40.8% in 2021.

Declining oil production and downgrading of its Western Flank oil and gas assets have not helped. Shares in the energy group have remained under pressure for most of this calendar year.

The Beach Energy share price fell 9.9% lower on August 16 after the company’s full-year results release. Beach produced 25.6 million barrels of oil equivalent (mmboe) but is forecasting just 21 million to 23 mmboe in FY22.

Things went from bad to worse for the Aussie energy company on September 3 as S&P DJI announced that Beach would drop out of the S&P/ASX 100 Index (ASX: XTO) in the next rebalancing.

Foolish takeaway

The Beach Energy share price has enjoyed a strong start to the day as oil prices jumped higher overnight. Shares in the Aussie energy company remain under pressure in 2021 amid reduced reserves and production levels.

The post Here’s why the Beach Energy (ASX:BPT) share price is climbing today appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
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• Why Adairs, Beach, Catapult, & Myer shares are charging higher
• Which ASX 300 shares are the biggest winners and losers today?

Motley Fool contributor Ken Hall 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 Ioneer Ltd (ASX: INR) share price has sunk this morning. In early trade, shares in the emerging lithium-boron company are 16.89% lower, trading at 61.5 cents.

This move follows Ioneer’s announcement on Thursday it was entering into a strategic partnership with a multibillion-dollar multinational mining company.

Teamwork to make the dream work

The Ioneer share price is plummeting this morning after its latest release to the ASX.

According to the announcement, the future-focused mining company has formed a joint venture (JV) with the world’s largest primary producer of platinum, Sibanye Stillwater.

Under the newly formed JV, Ioneer and Sibanye Stillwater will hold a 50/50 ownership. As part of the deal, Sibanye will contribute US$490 million in direct funding for its 50% share, while Ioneer will contribute 100% of its South Basin Rhyolite Ridge Lithium-Boron Project.

Additionally, Ioneer’s North Basin of Rhyolite Ridge will be contributed to the JV if Sibanye Stillwater exercises its option by providing a further US$50 million.

About the new partner…

A little background on Sibanye, the A$13 billion mining company operates across South Africa, the United States, Zimbabwe, Canada, and Argentina. In the trailing 12-month period, Sibanye recorded more than A$15 billion in revenue and approximately A$4.23 billion in profits. Partnering with such a large mining company could buoy the Ioneer share price.

Interestingly, today’s presentation specifies that this outcome is the product of an 18-month long process.

The South African mining company was deemed the appropriate partner due to its extensive experience in developing large projects. Furthermore, Sibanye Stillwater also has deep relationships with automakers and automotive OEMs, with a strong focus on battery metals.

In addition to the direct funding, Sibanye Stillwater will also subscribe for 145.9 million fully paid ordinary shares in Ioneer. This will be conducted through a placement, subject to shareholder approval, at 65.5 cents per share.

The proceeds of US$70 million will be used to cover the costs of advancing the project to the construction stage.

Management commentary

Commenting on the strategic partnership, Ioneer executive chair James Calaway said:

We are extremely pleased to welcome Sibanye-Stillwater, a leading international mining company, as a strategic partner in the Rhyolite Ridge Project.

With a strong strategic partner in place, we can now look to finalise the debt financing for the project and move towards construction. We are confident in the alignment of our companies. Our partnership with Sibanye-Stillwater will allow ioneer to unlock the tremendous, long-term value of Rhyolite Ridge.

What’s next for the Ioneer share price?

According to the timeline presented, shareholders will be given the chance to vote on the US$70 million placement to Sibanye Stillwater by 20 September. Subsequently, a meeting will be held on 21 October 2021 to approve the placement. If all goes to plan, the company expects the placement to be completed in the December 2021 quarter.

Finally, if all approvals are received, Ioneer will target the construction of Rhyolite Ridge in the second half of 2022.

The Ioneer share price has climbed a staggering 572% in the past year.

The post Ioneer (ASX:INR) share price plummets 16% after partnership news appeared first on The Motley Fool Australia.

More reading

• Why the Ioneer (ASX:INR) share price is leaping to an all-time high today
• Here’s why the Ioneer (ASX:INR) share price hit an all-time high today

Motley Fool contributor Mitchell Lawler 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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