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Shares in Mastermyne Group Limited (ASX: MYE) are in freefall today after the mining services company reported the death of a worker in an underground incident last night.

Resources Health and Safety Queensland are investigating the incident, with all mining operations suspended until further notice.

At the time of writing, the Mastermyne share price has plummeted 18.55% to 90 cents.

What happened?

In a statement to the ASX, Mastermyne reported that a worker was fatally injured last night in an underground mine collapse in central Queensland.

A section of wall and ceiling caved in while operations were underway at Gregory Coal Mine, located at Crinum, the company said.

Mastermyne advised that one of its workers was fatally injured, while another employee was trapped in the rubble. He has since been freed and is in hospital with non-life-threatening injuries.

Mastermyne managing director Tony Caruso said the company was providing support and assistance to the affected families. Counselling services have also been made available to all staff impacted by the incident:

This is a tragic event and our immediate thoughts are with the family, friends and workmates of our employee.

The safety and wellbeing of our staff is one of our core values. The cause of the incident will be thoroughly investigated and we will continue to support the family and our work colleagues.

Quick refresher on the Mastermyne contract

In late May, Mastermyne secured a $660 million mining services contract to operate the Gregory coal underground mine owned by Sojitz.

The 7-year deal includes an initial 6-month period of work to re-establish the underground infrastructure, with 180 full-time personnel employed. Works include conveyor systems, ventilation and associated mine services, plus remediation works and surface infrastructure.

The company previously planned to start mining production late this calendar year.

The mine has coal reserves amounting to 159 million tonnes of coking coal. This makes it one of the largest coal reserves in Australia and the world.

About the Mastermyne share price

As of market close yesterday, Mastermyne shares were trading 25% higher over the past 12 months. However, after today’s significant fall, its shares are now flat.

The company’s share price is up by more than 30% year-to-date.

Based on today’s price, Mastermyne has a market capitalisation of roughly $97.3 million, and approximately 107.5 million shares on issue.

The post Mastermyne (ASX:MYE) share price sinks 18% after mining fatality appeared first on The Motley Fool Australia.

More reading

• Woolworths (ASX:WOW) share price struggles amid bricks frustration
• Canva is now worth more than Woolworths! When can we buy shares?
• The Lotus Resources (ASX:LOT) share price is up 35% in a week
• Cryptocurrencies are making their way into more retiree portfolios
• ASX 200 midday update: Pilbara Minerals jumps, bank shares fall

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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Tech company Canva, one of Australia’s most successful unicorns, is now worth an astonishing $55 billion.

A $55 billion valuation would place Canva at a higher market capitalisation than many ASX 200 blue chip shares. That  includes Telstra Corporation Ltd (ASX: TLS), Coles Group Ltd (ASX: COL) and even Woolworths Group Ltd (ASX: WOW).

This new valuation for Canva was reported in the Australian Financial Review (AFR) this morning. According to the report, Canva has just completed a new US$200 million funding round. It was reported some of the company’s earliest backers, like BlackBird Ventures and AirTree Ventures, took part. 

This funding round values Canva at US$40 billion, or $54.76 billion in the local currency. That’s pretty much on par with the current market capitalisation of Fortescue Metals Group Limited (ASX: FMG). It was only 6 months ago that the company was valued at less than half of that figure.

The report also goes through some of Canva’s financials:

Canva now claims to have over 60 million monthly active users, up from 55 million at its last raise, and said it was on track to exceed $US1 billion ($1.4 billion) in annualised revenue by the end of 2021.

The company has been profitable since 2017. It claimed there are now more than 500,000 paying teams subscribed to Canva, including from companies like American Airlines, Zoom, SkyScanner, Intel, Salesforce, PayPal and Marriott International.

So if you’re not an investor with BlackBird Ventures and the like, when can you or I expect to be able to participate in this growth story? When will Canva IPO and join the ASX boards as a public company?

When will Canva IPO?

Not for a while, at least according to another report in the AFR this week. This report claims Canva is unlikely to go public “for at least a year”.

This is reportedly on valuation concerns, with inside investors worries that the public markets won’t accept an even higher valuation that might make an IPO attractive. Here’s what the report said on the matter:

Regardless, the word on the street is that Canva would have to be willing to accept a substantial discount on its current valuation if it were to list now, so why not just wait?

The report also flags that the company may bypass the ASX altogether if it does eventually float, citing the company’s size and scale as more suited to the US Nasdaq exchange. In fact, the report stated “You can lock in the NASDAQ for Canva”, so that’s pretty unequivocal.

Unfortunately, we retail investors simply miss out sometimes. It seems it will stay that way for Canva. At least for now, anyway.

The post Canva is now worth more than Woolworths! When can we buy shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of Intel, Telstra Corporation Limited, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Intel and has recommended the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET and Telstra Corporation Limited. The Motley Fool Australia has recommended Zoom Video Communications. 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 Lotus Resources Ltd (ASX: LOT) share price has been on fire this past week.

Over the last 7 days, shares in the mining exploration company have rocketed more than 35%.

Let’s take a look at what’s propelling the Lotus share price higher this past week.

What’s fuelling the Lotus Resources share price?

Despite not releasing much price-sensitive news in the past week, investors have continued to push the Lotus share price higher.

Yesterday, the mining exploration company announced that the licence for its Kayelekera Project Uranium project was renewed.

According to the release, Lotus’ mining licence for the site was renewed for a further 15 years.

Lotus Managing Director Keith Bowes commented:

We are delighted to have received an extension of our Mining Licence for an additional 15 years. This is a critical step, as it provides certainty and confidence to our investors that Lotus has the full backing of the Government to continue our on-going development of Kayelekera, as we position the Project to be one of the first assets to recommence production in an ever improving uranium price environment.

Prior to yesterday’s announcement, the company’s share price has also benefited from increased interest in the uranium sector.

After being in a prolonged bear market, uranium spot prices have soared in the past month.

According to Cameco, uranium prices have soared to 6-year highs.

Strength in the underlying commodity has helped fuel the Lotus Resources share price in the past week.  

The major catalyst behind the soaring uranium spot price has been the aggressive buying of the world’s largest uranium fund, Sprott Physical Uranium Trust.

More on the Lotus Resources share price

Lotus Resources is a mining and exploration business with mineral development interests in Australia and Malawi.

The company has an 85% interest in its flagship Kayelekera Uranium Project in Malawi.

According to Lotus, the project hosts a current resource of 37.5 million pounds in U3O8, which is a compound of uranium.

The company recently completed a positive feasibility study which demonstrated that Kayelekera can support a viable long-term operation.

Since the start of the year, the Lotus Resources share price has soared more than 127%.

At the time of writing, shares in the mining exploring company have continued their bullish run, trading more than 4% higher for the day at 28.5 cents.

The post The Lotus Resources (ASX:LOT) share price is up 35% in a week appeared first on The Motley Fool Australia.

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• Why the Lotus Resources (ASX:LOT) share price is jumping 18% on Monday

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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Despite the inherent volatility of cryptocurrencies, a report has found more people of retirement age are delving into the space.

The findings were shared in the inaugural annual BTC Markets Investor Report. This report is aimed at providing insights into the behaviour of Australian cryptocurrency investors in FY2021.

Interestingly, the data points to an increased interest in the likes of Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) among people 60 years of age and older.

This challenges the stereotype that the sole demographic of crypto investors is young males.

Cryptocurrency as an alternative asset

As Bitcoin and other cryptocurrencies surpass more than 10 years of existence, previous naysayers are beginning to open up to the idea of investing. Generally, it had been younger people who served as early adopters of blockchain-based investments. However, BTC Markets’ recent report suggests older demographics are making a foray into the world of crypto.

While people between the age of 25 and 43 years old still make up the majority of users of the BTC Markets exchange at 69%, those above the age of 60 are growing at a substantial rate. According to the report, this demographic of crypto exchange users increased 15% year-over-year. In fact, the rate of growth outpaced the increase in users between 25 and 43 years of age.

The data indicated that the demographic is trading less frequently than its younger peers. However, these more senior investors are dishing out a greater amount of dosh into their digital investments.

For example, the 25 to 43-year-old age group on average traded 6 times daily compared to the over 65’s 4 times. Though the older group poured in more than twice as much money on average than their younger peers, at $4,349 compared to $3,263.

BTC Markets justifies the discrepancy in investment amount by stating, “As baby boomers, they [the over 65-years-old demographic] have accumulated assets and disposable income, so are not worried about allocating a percentage of their portfolios to cryptocurrencies.”

Commenting on these findings, BTC Markets CEO Caroline Bowler said:

Australians aged over 60 are seriously developing investment strategies for their post-work years as they approach retirement. A low interest rate environment is a key factor behind them seeking investment opportunities in alternative assets like cryptocurrency.

Creeping into SMSFs

Another indication that the speculative asset is making inroads with more investors, BTC Markets reported a large surge in the number of self-managed super funds (SMSFs) using the platform. The cryptocurrency exchange reported a 95% increase in users operating under an SMSF in FY21.

Additionally, these retirement funds also upped the ante in the amount being invested. Reportedly, the exchange witnessed a 145% increase in the average portfolio size year-over-year.

Given this, BTC Markets suggests that people are holding a long-term bullish sentiment towards cryptocurrencies such as Bitcoin and Ethereum.

The post Cryptocurrencies are making their way into more retiree portfolios appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns shares of Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is tumbling lower. The benchmark index is currently down 0.55% to 7,396.4 points.

Here’s what is happening on the ASX 200 today:

Pilbara Minerals shares surge higher

The Pilbara Minerals Ltd (ASX: PLS) share price is surging higher today. This follows the release of very positive results from its second lithium spodumene concentrate digital auction. According to the update, the lithium miner received a bid of US$2,240/dmt for 8,000 dmt of its spodumene concentrate. This was almost double what it received at its inaugural auction last month, which highlights the insatiable demand for battery making ingredients.

Bank shares slide

The big four banks are all under pressure on Wednesday and are weighing on the ASX 200 index. The worst performer in the group has been the National Australia Bank Ltd (ASX: NAB) share price with a decline of 0.6%. This follows a tough night for US banks, which saw the likes of Bank of America and Citigroup fall around 2.5%.

Mining shares fall

The biggest drag on the ASX 200 index on Wednesday has been the resources sector. Miners such as BHP Group Ltd (ASX: BHP) and OZ Minerals Limited (ASX: OZL) are trading notably lower after pullbacks in the prices of a number of commodities overnight. Copper fell 1.2%, iron ore also fell 1.2%, and aluminium dropped 4%.

Best and worst ASX 200 performers

The best performer on the ASX 200 index on Wednesday has been the Pilbara Minerals share price with a 9% gain. This follows its highly successful lithium auction. The worst performer has been the AGL Energy Limited (ASX: AGL) share price with a 6.5% decline. This is despite there being no news out of the energy company.

The post ASX 200 midday update: Pilbara Minerals jumps, bank shares fall appeared first on The Motley Fool Australia.

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

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The BlueBet Holdings Ltd (ASX: BBT) share price has had a torrid past week.

In the last 7 days, shares in the wagering company have tumbled more than 8%.   

Let’s take a look at what’s been dragging the BlueBet share price lower.   

BlueBet shares tank on US expansion blows

Shares in BlueBet have struggled in the past week, tanking more than 8% since last Wednesday.  

Despite not releasing any price-sensitive news in the past week, much of the selling is attributable to a couple of catalysts.  

Earlier this month, BlueBet announced a blow to its US expansion plans, hammering the share price.

The mobile sports betting company announced that it had withdrawn its application for a sports betting permit in Virginia.

On advice from the regulator, Virginia Lottery, BlueBet pulled out of the licencing process.

The regulator noted that licences are granted to operators with experience in other US states.

The BlueBet share price received another setback late last month following an unsuccessful application for online sports betting in the state of Arizona.

More on the BlueBet share price

BlueBet is a mobile and online bookmaker that provides wagering products on Australian and international racing and sports.

The wagering company’s products include 31 sports in Australia and internationally, plus entertainment and politics markets.

The company’s products are powered by a cloud-based technology platform.

Before its recent slump, shares in BlueBet were flying at all-time highs.

Despite setbacks in its US expansion plans, the wagering company was buoyed by solid results for FY21.

An 83.3% increase in revenue of $344.7 million was a highlight in BlueBet’s full-year report.

Other highlights from the company’s report included:

• Wagering revenue (net win) up 92.5% on pcp to $35.6 million
• Active customers up 45.7% on pcp to 32,472
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 48.4% on pcp to $7.5 million
• Net profit after tax down 33.6% on pcp to $3.0 million

BlueBet noted that results for FY21 exceeded its prospectus forecasts and were driven by strong growth in Australian market share.

The company also highlighted its plans to expand into the lucrative US market.

At the time of writing, shares in BlueBet are trading more than 2% higher for the day.

The post Why the BlueBet (ASX:BBT) share price has lost 8% in a week appeared first on The Motley Fool Australia.

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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 recommended BlueBet 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 Commonwealth Bank of Australia (ASX: CBA) share price is down around 0.6%. Australia’s biggest bank released an update about the government scheme loans for small and medium businesses to help them with the impacts of COVID-19.

Over the last year and a half, there have been huge impacts on various parts of the Australian economy. Government stimulus has been there to help households and employees.

But some businesses have needed more support than the cash support that was given by the federal and state government.

The government scheme loans

CBA gave an update today to say that more than 20,000 Australian businesses have received more than $1.98 billion in funding support made available through the Commonwealth Bank’s government-backed guarantee loan scheme to help them manage the impacts of the pandemic, recover and invest for the future.

The original scheme was started on 22 March 2020. That was essentially the bottom of the COVID-19 crash, when the CBA share price fell below $60.

The scheme has seen various developments since inception. This scheme was recently changed to allow any business impacted by COVID-19 with annual turnover of less than $250 million to borrow up to $5 million for up to 10 years at record low rates.

This help has been given to various industries over the past 18 months. CBA said the loans gave smaller businesses vital cashflow and peace of mind. Some of the businesses have used the cash to adapt to the current conditions. For example, they may have shifted online, or expanded the operations. Those businesses that saw increased demand may have allowed them to employ more staff.

The CBA gave an example of a meat wholesaling and retailing business which pivoted to online and allowed consumers to buy restaurant quality meat as well as the regular butcher products. Since then, it has done over 100,000 deliveries and now delivers to 92% of Australian postcodes.

The CBA executive general manager of business lending, Clare Morgan, said:

The impacts of the pandemic have been really varied for different businesses and different sectors, many require access to credit to help them through this period, and some are looking for additional capital to grow, invest and expand through recovery.

We plan to play a leading role in the expanded SME Recovery Loan Scheme as we’ve done through the various phases of the scheme and encourage businesses to speak with us about what might be suitable for their business needs.

What else may be impacting the CBA share price?

It’s true that CBA shares are down around 0.6%.

However, the overall ASX share market – the S&P/ASX 200 Index (ASX: XJO) – is also down by 0.54% to 7,397 points. So, CBA shares have largely tracked what the market has done today.

The bank has seen considerable growth in the shorter-term. In 2021 it has gone up by 20% whilst. CBA shares have gone up 55% over the past year.

The post CBA (ASX:CBA) share price slides amid upbeat $2b loan scheme appeared first on The Motley Fool Australia.

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

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Recessions have several causes, but one stands out in particular right now. According to the National Bureau of Economic Research, a recession can be caused by an overheating economy where demand outstrips supply, causing price inflation.

That scenario is eerily familiar to what is going on in the U.S. economy right now. Prices are going up broadly for things like used cars, fuel for your car, and vacation stays. Indeed, the U.S. Bureau of Labor Statistics reported the 12-month change in the consumer price index was 5.3% in August.

Although we are just rebounding from a recession caused by the pandemic, the economy can go into another recession not long after. Here’s why Netflix‘s (NASDAQ: NFLX) business could perform better than Disney‘s (NYSE: DIS) during the next recession.

Netflix is the lower-cost entertainment option

Netflix’s one business segment is its streaming services, which range in price in different regions. Common among all regions is that you can be a subscriber for less than $1 per day. It has enough content to entertain the family, and it constantly updates the service with new and changing movies and shows. Therefore, if your income is falling during a recession, one of the last things you will cancel is probably the Netflix subscription.

By contrast, Disney has a broad business empire that includes theme parks, resorts, cruise ships, and merchandise in addition to its streaming services. It’s no secret that a visit to a Disney theme park can be pricey. Any of my readers who have taken a family trip to one of them need no convincing of that. It’s more likely that when family incomes are falling during a recession, a trip to a Disney park gets delayed or canceled altogether.

It’s a trend that harms Disney more than Netflix. Even though its theme parks were severely constrained in the most recent quarter, the segment still brought in 34% of Disney’s overall revenue. Sure, it would be fun to visit Disneyland or Walt Disney World, but when incomes are falling, the most fun thing is not what always gets chosen. Unlike during expansions, in recessions folks choose the option that costs less. For that reason, Netflix is more recession-proof than Disney.

What this could mean for investors

For those following Netflix and Disney, this is a thing to watch. If you own Disney stock, be aware that revenue could temporarily dip during a recession. That awareness should help you cope with increased volatility in Disney’s stock price during that time.

Netflix’s revenue and profits are not likely to decrease significantly. If its stock price crashes as the market sentiment turns sour in a recession, it could be an opportunity to buy the stock.

Still, investors should evaluate the companies when the time comes, but awareness of how consumers might respond in different economic scenarios is a good planning exercise to undertake.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Here’s why Netflix is more recession-proof than disney appeared first on The Motley Fool Australia.

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Parkev Tatevosian owns shares of Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netflix and Walt Disney. The Motley Fool Australia has recommended Netflix and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The PointsBet Holdings Ltd (ASX: PBH) share price is fast approaching 12-month lows after sliding 16.7% year-to-date and down more than 40% from its February all-time highs.

At the time of writing, PointsBet shares are trading for $9.62, down 3.9% from yesterday’s closing price.

Let’s take a look at some potential factors that may have stunted shareholder value for PointsBet.

What’s weighing on the PointsBet share price?

Immense cash burn

PointsBet represents one of those loss-making, high growth narratives.

While many loss-making companies might take a more disciplined approach to capital management or making strides towards profitability, PointsBet has seen its losses balloon.

In its FY21 results, the company reported a 159% increase in revenue to $194.7 million. This was driven by a triple-digit uplift across key trading metrics such as betting turnover and active clients.

However, its strong growth came at a hefty price tag.

PointsBet reported a 314% increase in losses from $39.7 million in FY20 to $164.3 million in FY21.

Capital raising overhang

PointsBet has actively tapped into the pockets of its shareholders for more capital to sustain its growth trajectory.

The PointsBet share price made its debut on the ASX in June 2019 after successfully raising $75 million at $2.00 per share.

The company initiated a $122.1 million capital raising in October 2019 to fund its marketing, technology and US business development endeavours.

PointsBet raised another $303 million in September 2020 following its transformational deal with NBC Sports in the US.

More recently, PointsBet raised $400 million in August to further its US growth plans.

Weakness in broader tech

The ASX tech sector has struggled to outperform the broader market in 2021.

The S&P/ASX 200 Info Tech (INDEXASX: XIJ) is up 4.6% year-to-date compared to the S&P/ASX 200 Index (ASX: XJO) which has rallied 10.7%.

Many leading ASX 200 tech shares such as Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P) and Xero Limited (ASX: XRO) have largely flatlined in the past few months.

The underperformance of tech and high growth names could be another factor weighing on the PointsBet share price.

The post Down 4%, why the PointsBet (ASX:PBH) share price is close to 12-month lows 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. owns shares of and has recommended AFTERPAY T FPO, Pointsbet Holdings Ltd, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Xero. 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 Calix Ltd (ASX: CXL) share price is shooting straight for the moon. At the time of writing, shares in the materials company are trading for an all-time high of $4.61 – up 20.37%. That’s despite the S&P/ASX 200 Index (ASX: XJO) being down 0.48%.

The positive price movement comes after the company announced Carbon Direct Capital invested 15 million euros into one of its subsidiaries.

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

Calix share price rises on new investment

In a statement to the ASX, Calix says it has received a 15 million euro investment in its subsidiary LEILAC Group. The investor, Carbon Direct – which Calix describes as “one of the world’s leading decarbonisation investors” – will take a 6.98% stake in the business. LEILAC Group is focused on carbon dioxide capture technology.

As part of the deal, Calix has entered into a licence agreement with the LEILAC Group where it will retain 30% of royalties earned by the LEILAC Group from the deployment of its technology. This will be regardless of Calix’s equity stake in LEILAC.

At the same time, LEILAC will become an autonomous business with its own management and board. All board members, bar one, will be Calix directors. The remaining member will be appointed by Carbon Direct.

LEILAC Group is the licensee of Calix’s Low Emissions Intensity Lime and Cement (LEILAC) CO₂ capture technology. The investment into this technology is clearly buoying investors, judging by the rising Calix share price.

Management commentary

Calix CEO Phil Hodgson said the deal represented a “critical milestone” in Calix’s stated strategy of seeking equity “farm-ins”:

As each of these businesses become independent commercial entities, they will remain ‘joined at the hip’ technically with Calix, which will continue to support development of the core intellectual property. Over time, growing royalty income from these companies will also support the development of new applications of the IP and associated technologies.

The recent Intergovernmental Panel on Climate Change (IPCC) report was unequivocal in saying that to reach the stated 2030 goals on climate change, CO2 emissions have to be reduced. LEILAC Technology is an option that is being deployed now to meet this urgent need.

Carbon Direct founder and CEO Jonathan Goldberg added:

We are very impressed by the technical and commercial rigour of the LEILAC team, and plant partners are outspoken in their excitement about LEILAC. We are delighted to support Phil, Calix, and the LEILAC Group as they seek to scale LEILAC into cement and lime plants around the world.

Calix share price snapshot

Over the past 12 months, the Calix share price has increased 407%. Year-to-date, it has risen around 332%.

Calix has a market capitalisation of approximately $715 million.

The post Why the Calix (ASX:CXL) share price is surging 20% to a new all-time high appeared first on The Motley Fool Australia.

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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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