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The Goodman Group (ASX: GMG) share price is edging higher on Friday.

In afternoon trade, the commercial property company’s shares are up slightly to $22.70.

This means the Goodman share price is now up 17% since the start of the year.

Why is the Goodman share price outperforming in 2021?

Investors have been bidding the Goodman share price higher this year on the belief that it would deliver a strong result in FY 2021.

This turned out to be accurate, with the company releasing a result ahead of the market’s expectations this week.

In case you missed it, Goodman reported a 15% increase in operating profit to $1.22 billion and operating earnings per share (EPS) of 65.5 cents.

This was driven by a 12% increase in total assets under management (AUM) to $57.9 billion, a portfolio occupancy rate of 98.1%, and like-for-like net property income growth of 3.2%.

One disappointment, though, was that its guidance for FY 2022 was below the market’s expectations. However, it is worth noting that Goodman has a track record of under promising and over delivering.

Can its shares go even higher?

The good news is that the team at Citi believe the Goodman share price is still good value at the current level.

This morning the broker retained its buy rating and $26.00 price target on the company’s shares.

Based on the current Goodman share price, this implies potential upside of 14.5% over the next 12 months before dividends.

Citi said: “GMG’s FY21 EPS was +2% above guidance and +1%/+0.5% above consensus/Citi, with the beat vs our estimate driven by higher investment income and lower interest expense/tax. FY22 EPS guidance was introduced at 10% growth or 72.2c, -2% below consensus and -3.5% below our prior estimate. However, we see upside to guidance and the share price, and re-iterate our Buy rating.”

The post Top broker tips Goodman Group (ASX:GMG) share price to surge higher 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 Bank of Queensland Limited (ASX: BOQ) share price is struggling today after the Federal Court found its small business loans to be “unfair”.

As the Motley Fool Australia reported this morning, the Court determined the loans’ contracts were unfair and broke Australian law. It ordered the bank to remove the unjust terms.

The Bank of Queensland share price has, understandably, suffered. It’s flat with its previous closing price of $9.57.

Let’s take a closer look at today’s news of the Bank of Queensland.

Federal Court finds loans “unfair”

The Bank of Queensland share price has had a troubled day after the Australian and Investment Commission (ASIC) won its Federal Court case against the bank.

ASIC has claimed the bank’s small business customers had been placed under weighted loan terms since November 2016.

The Federal Court found in favour of ASIC’s claims that the bank’s small business loans’ terms breached Australian Consumer Law and the ASIC Act. In her judgement, Justice Banks-Smith stated:

[T]he declarations sought are appropriate because they serve to record the Court’s disapproval of the contravening conduct, vindicate the claim by ASIC that the bank had contravened the Act, assist ASIC to carry out the duties conferred upon it by the Act, and deter other corporations from entering into contracts containing unfair terms.

However, ASIC, Bank of Queensland, and the Federal Court stated none of the bank’s customers was impaired by the clauses. Bank of Queensland will now amend the terms, as ordered by the Court.  

According to ASIC, the loans’ contracts meant the bank could change its terms at any time. Additionally, borrowers didn’t have the chance to leave a newly revised contract without being penalised.  

Bank of Queensland could also default a customer’s loan due to events that wouldn’t cause the bank any financial harm. Further, it could do so without giving a borrower the chance to address the issue.

Finally, the contracts stated if the bank erred on the loan’s details, the customer had to prove its failure. In a release detailing the Court’s finding, ASIC stated:

[I]f BoQ issued a certificate stating an amount owing by a customer, that amount would be assumed to be correct unless the customer could prove otherwise.

Bank of Queensland share price snapshot

Safe to say, it hasn’t been a good day for the Bank of Queensland.

However, the Bank of Queensland share price is still in the green. It has gained 27% year to date and 59% over the past 12 months.

The post Bank of Queensland (ASX:BOQ) share price struggles as Court finds contracts ‘unfair’ appeared first on The Motley Fool Australia.

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

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The Woodside Petroleum Limited (ASX: WPL) share price is edging higher in afternoon trade as we finish the week.

While enthusiastic investors are pushing Woodside shares north, up 0.36% to $22.10, climate authorities have reacted harshly to the latest news on its Scarborough project.

Let’s investigate further.

Scarborough project gets the green light

WA Minister for Environment, Amber-Jade Sanderson granted approval for the proposal on 11 August. The decision came after the Environment Protection Authority’s assessment.

Woodside got the green light to construct about 33km of pipeline in nearshore waters off the Pilbara coastline, in the state’s north. This will make up a section of the 430km pipeline that Woodside is developing as part of its expansion of the Pluto LNG facility.

Woodside welcomed the news with open arms. In a statement, Acting CEO Meg O’Neill said:

This is an important regulatory milestone as we now have both commonwealth and state primary environmental approvals in place to support a final investment decision.

An extensive public review was completed on the proposal, including stakeholder consultation, and a review of the spoil disposal management plan.

The dust is yet to settle

The decision has faced significant backlash. For instance, climate authorities have now weighed in on the debate, among others.

In yesterday’s The Guardian, Conservation Council of Western Australia executive director, Piers Verstegen said the pipeline is “the key piece of infrastructure that would enable Australia’s most polluting fossil fuel project to proceed”.

Tim Baxter, of The Climate Council, also chimed in. Baxter said how “absurd” it was that a project like Scarborough is “still being considered, let alone approved, in 2021”.

The announcement follows the International Panel on Climate Change’s (IPCC) scathing report released a few days ago.

O’Neill has pushed back at the condemnation by saying:

Scarborough gas contains negligible reservoir carbon dioxide. Combined with the adoption of best available proven technology in design at Pluto Train 2, these developments will be amongst the lowest-carbon LNG sources globally for Woodside’s North Asian customers.

Given the summation of these factors, investors can expect more to come from each camp. Despite the outrage, there has been little effect on the Woodside share price.

Woodside share price snapshot

The Woodside share price has posted a year-to-date loss of about 4%. Despite this, Woodside shares are 8% into the green over the past 12 months.

In addition, Woodside shares are about 4% in the red over the past month.

These returns have lagged the S&P/ASX 200 Index (ASX: XJO), which has climbed about 25% over the past year.

At the time of writing, Woodside has a market capitalisation of $21.11 billion.

The post Woodside (ASX:WPL) share price edges higher despite fresh climate outrage in WA appeared first on The Motley Fool Australia.

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

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The Magnum Mining and Exploration Ltd (ASX: MGU) share price is having a woeful time during late Friday afternoon trade.

This follows the mineral mining company’s latest announcement in regards to its agreement with Anglo American.

At the time of writing, Magnum shares are down 7.69% to 12 cents apiece. Earlier, the Magnum share price hit a 5-month low of 10.5 cents within the first hour of market open.

What did Magnum announce?

Investors appear worried about the potential offtake arrangement, selling Magnum shares today. The arrangement would see Magnum sell its entire direct shipping ore from its Buena Vista iron ore project to Anglo American.

According to Magnum’s release, both parties have extended the exclusivity period to conduct due diligence for the agreement. As such, the Magnum board does not foresee any impact to production timings should the offtake agreement be reached.

The exclusivity date has been pushed back until 4 November 2021. However, a formal contract is expected to be signed well before.

The term sheet remains unchanged. This includes the right of first refusal to Anglo American for 100% of the offtake volumes. This consists of iron ore concentrate, hot briquetted iron (HBI) and Pig Iron from Phase 2 of the project, as well as financing.

Magnum said it would provide a further update when the formal agreements were complete.

In addition, the company is reviewing other attractive opportunities in the region to increase its resource inventory from adjacent land. It also is working towards a bankable feasibility study to progress the HBI and Pig Iron project.

About the Buena Vista iron ore project

Located in Nevada in the United States, the Buena Vista mine is positioned to become a green steel producer. The term ‘green’ refers to producing materials from waste products. The mine is also considered a significant magnetite mineral resource that has had $34 million invested in advancing the project.

Additionally, the mine has close access to rail, water, port, and power facilities.

Magnum share price summary

Until recently, a strong 12 months hyped by investor sentiment led the Magnum share price to jump by more than 240%. Year-to-date performance has been just as impressive, with Magnum shares posting gains of more than 120%.

Based on valuation ground, Magnum has a market capitalisation of around $59.5 million, with approximately 496 million shares outstanding.

The post Magnum Mining (ASX:MGU) share price slides 7% on project update appeared first on The Motley Fool Australia.

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

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The S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is pushing higher. In afternoon trade, the benchmark index is up 0.5% to 7,625.2 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking:

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is down 5% to $5.68. This follows the release of the baby products retailer’s full year results for FY 2021. That release revealed that Baby Bunting achieved a 15.6% increase in sales to $468.4 million and a 34.8% jump in net profit after tax to $26 million. Although this was strong, its subdued start to FY 2022 appears to have spooked investors. Baby Bunting advised that same stores sales are down 6.4% as of 12 August.

Galan Lithium Ltd (ASX: GLN)

The Galan Lithium share price has fallen 4.5% to $1.22. This morning the lithium explorer announced firm commitments to raise $50 million through a two-tranche institutional placement. These funds will be raised at $1.15 per share, which represents a 10.2% discount to its last closing price. Galan Lithium plans to use the proceeds to accelerate the development of its lithium projects.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price has dropped 3.5% to $12.34. The insurance and banking giant’s shares have tumbled today after they traded ex-dividend for its upcoming final and special dividends. Eligible shareholders can now look forward to receiving fully franked dividends totalling 48 cents per share on 22 September.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan share price is down 4% to $14.64. This is despite there being no news out of the lithium developer. However, with the lithium sector running hot this week, profit taking appears to be weighing on Vulcan’s shares. In fact, even after today’s gain, the Vulcan share price is up almost 15% since this time last week.

The post Why Baby Bunting, Galan Lithium, Suncorp, & Vulcan shares are sinking 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 recommended Baby Bunting. 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 NIB Holdings Limited (ASX: NHF) share price leapt into the green in early trade today. Shares in the health insurer started the session well, reaching a 52-week high of $7.97, before retracing back down.

The NIB share price is now changing hands at $7.72 apiece, a 0.52% walk into the green.

Let’s examine the tailwinds behind the company of late.

What has NIB been up to lately?

On 20 July, NIB announced a restructuring of its board, appointing David Gordon as the new chair of its board. Gordon replaced Steve Crane, who officially stepped down on 29 July.

As a founding principal of Lexicon Partners and current chair of Accent Group Ltd (ASX: AX1), Gordon said he was “honoured and excited to assume the role”.

In addition, NIB was a feature in the Prime Value Opportunities Fund June update, as reported by Motley Fool’s Mitchell Lawler. The fund described NIB as “very attractive”, considering a two or three-year holding period.

Prime provided a brief synopsis of its investment thesis on NIB in the update:

The consensus view is that profit margins are unsustainably high and it’s better to own the health providers as elective surgeries, etc. return. We agree NHF’s margins will fall but using long term, sustainable margins, the company is very attractively priced.

And in the meantime it generates very high cashflows, boosting the balance sheet. To us, fundamental underlying value is more important than short term earnings trends

Investor sentiment sets the tone

Doubtlessly, investor sentiment is bullish on NIB shares at the current standing. To illustrate, the NIB share price has reached new 52-week highs three times in the last month.

Further, on the charts, NIB shares have really taken off since the beginning of July. As much is observed on the chart below.

NIB share price vs broad index, March – August 2021

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This is called an “uptrend”, where a share price makes consecutive new highs (and higher lows) as we walk through time.

Moreover, this display is further evidence of the bullish sentiment on NIB shares right now. The NIB share price has been in an uptrend since July, indicating there is investor demand to buy NIB shares.

With no market-sensitive information released today, it appears that the board restructuring, and in particular the current investor sentiment, are key tailwinds behind the NIB share price right now.

NIB share price snapshot

The NIB share price has posted a year to date gain of 29.3%, extending the previous 12 month’s climb of 67%.

These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)’s lift of around 25% over the past year.

NIB shares have climbed 21% over the past month alone, and are almost 4% in the green over the past week.

The post Why has the NIB (ASX:NHF) share price reached a 52-week high on Friday? appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended NIB Holdings 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 Commonwealth Bank of Australia (ASX: CBA) share price is in the red as climate activist group, Market Forces, pushes the bank on its commitments to preventing climate change.

At the time of writing, shares in Australia’s largest bank are trading for $103.70 – down 2.06%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.47% higher.

Let’s take a closer look.

CBA share price down amid climate push

In the wake of the devasting climate report by the Intergovernmental Panel on Climate Change (IPCC), which outlined the dire situation humanity is facing in the next 10 years, activists have stepped up the pressure on governments and corporations to do more to mitigate man-made climate change.

Motley Fool Australia has previously reported on how Market Forces is pushing BHP Group Ltd (ASX: BHP) to keep and wind down its high-emitting assets, rather than sell them.

Regarding CommBank, Market Forces and a group of the bank’s shareholders are placing a resolution on the agenda of its AGM. The group is asking CBA “to no longer fund expansion of the fossil fuel industry, and to set targets to reduce fossil fuel exposure consistent with net zero by 2050″.

It is not clear what impact this could have on the CBA share price going forward.

‘CommBank’s new climate policy a kick in the guts‘

Market Forces claims Commonwealth Bank’s current plan aligns closer to net zero by 2070 rather than 2050. This claim was made soon after the release of the bank’s full-year results for FY21, which sent the CBA share price to a new record high.

“If the IPCC’s report was a kick in the teeth to all those who desperately want a safe climate future, CommBank’s new climate policy is a kick in the guts to follow it up”, said Jack Bertolus, Australian campaigns coordinator for Market Forces.

“What CBA has delivered today is a retreat from its existing policy, and makes a mockery of its own claim to be supportive of net-zero by 2050.

“We’re living in a moment when we need to pull out all the stops to prevent catastrophic climate change, yet the first thing CBA does is aim for failure.”

Finally, Market Forces says Commonwealth Bank has “watered down its commitment” to not funding fossil fuel activities that did not comply with the Paris Agreement. It says the bank is now only committing to not providing project funding.

When the Australian Prudential Regulatory Authority (APRA) released a draft guidance for financial institutions and their obligations around climate change, Motley Fool Australia asked CBA for comment.

At the time, a spokesperson for CommBank said:

We are aware of, and are currently reviewing, APRA’s draft guidance on managing the financial risks of climate change that was released last week. We continue to work closely with APRA and the broader industry as we strive to limit climate change in line with the goals of the Paris Agreement and support the global transition to net zero emissions by 2050.

CBA share price snapshot

Over the past 12 months, the CBA share price has increased by about 43%. Year-to-date CommBank shares are about 24% higher. It has outperformed the ASX 200 by 18 percentage points over 52 weeks and 10 percentage points in 2021.

Commonwealth Bank has a market capitalisation of around $188 billion.

The post Commonwealth Bank (ASX:CBA) share price falls amid climate revolt 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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The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is arguably having one of its best years.

Shares in the infrastructure giant have soared more than 43% in the last 12 months.

Despite widespread lockdowns and border closures, Sydney Airport shares have soared in 2021.

Let’s take a look at what’s been fuelling the Sydney Airport share price.

Takeover offer boosts Sydney Airport share price

There have been several catalysts helping the Sydney Airport share price in the past 12 months.

In the latter parts of last year, with most of Australia managing to control the COVID-19 pandemic, travel restrictions were lifted.

In addition, a Trans-Tasman travel bubble between Australia and New Zealand also assisted sentiment for the sector.

Despite Sydney going into a lockdown mid-way through this year, a single catalyst has helped fuel the Sydney Airport share price.

Shares in the company received a boost early last month following a $22.6 billion buyout offer.

The offer saw the Sydney Airport share price storm more than 34% on the day.

A consortium of infrastructure investors – IFM Investors, Global Infrastructure Management, and QSuper – launched the takeover offer, valuing Sydney Airport at $8.25 per share.

Prior to the offer, the Sydney Airport share price was languishing for the year.

Outlook for Sydney Airport share price

Following the takeover offer, Sydney Airport’s management noted the predatory nature of the takeover bid.

The company cited that the offer of $8.25 per share was below where Sydney Airport shares were trading pre-pandemic.

Before the COVID-19 pandemic, the Sydney Airport share price was trading at around $8.95.

In addition, rumours began to swirl that another consortium led by Macquarie Group Ltd (ASX: MQG) was considering a counter bid.

As a result, Sydney Airport formally rejected the takeover offer for 100% of its shares in mid-July.

Despite rejecting the offer, the Sydney Airport share price has managed to hold onto its gains following the takeover bid.

More on Sydney Airport

Sydney Airport is Australia’s largest international gateway. The company generates revenue through aeronautical, retail, property, car rental and parking operations.

With widespread COVID-19 lockdowns hampering the Australian travel sector yet again, Sydney Airport could receive extra attention this reporting season.

Sydney Airport will release its 2021 half-year results on Friday 20 August.

The post The Sydney Airport (ASX:SYD) share price is up 43% for the year. Here’s why 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 owns shares of and has recommended Macquarie Group 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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ASX investors have largely embraced the cryptocurrency markets in recent years, and everything that crypto coins like Bitcoin (CRYPTO: BTTC) or Ethereum (CRYPTO: ETH) have to offer. Earlier this year, we looked at how Bitcoin was pipping gold as an investment choice for many Aussies today.

However, the ASX has certainly been more restrained in its embrace of the new crypto world.

The ASX and the Australian Securities and Investments Commission (ASIC) have knocked back the idea of an ASX-listed Bitcoin exchange-traded fund (ETF) before. Unlike over in the US, no Australian company has yet decided to put some of its balance sheet assets into cryptocurrencies (more on that later).

As a report in the Australian Financial Review (AFR) notes today, the ASX has also knocked back a company called Animoca Brands from listing, despite a US$1 billion valuation. Animoca Brands hosts a non-fungible token (NFT) platform. Although NFTs are not the same thing as cryptocurrencies, clearly they are a little too close for comfort for the ASX in their shared use of blockchain technology.

But the ASX is now facing a bit of a watershed moment. That’s due to the upcoming potential merger of Afterpay Ltd (ASX: APT) and the US payments giant Square Inc (NYSE: SQ).

Afterpay lit the ASX on fire last week when it announced that it has agreed to be acquired by Square in an all-scrip deal. If the deal goes ahead, Afterpay shareholders will receive 0.375 shares of Square for every share of Afterpay owned.

Square and Afterpay bring Bitcoin to the ASX 200

Here’s where this gets mightly relevant. Square will also be offering its shares on a CHESS Depositary Interest (CDI) basis to Aussie investors on the ASX, once Afterpay shares disappear from trading.

That means that ASX investors will either be able to elect to receive NYSE-listed Square shares or shares of the new Square CDI on the ASX.

That, in turn, means Square might become one of the largest listings on the ASX. That’s despite its status as an American company. One with a current market capitalisation of US$123.5 billion to boot.

But here’s the real issue that the ASX is facing. Square is a payments giant. However, it is also deeply submerged in the world of cryptocurrencies. Whilst not yet available in Australia, its Cash App allows US customers to trade, send or receive Bitcoin and other cryptocurrencies. It also allows users to buy and sell other goods and services with cryptos.

The AFR report tells us that Square has just announced that it increased its Bitcoin revenues by 200% year on year to US$2.7 billion in its most recent reported quarter. It also states that Square has a large number of Bitcoins on its balance sheet — 8,027 of them, in fact.

This might be a little confronting for the ASX and ASIC, who have clearly been, at best, lukewarm on the presence of cryptocurrencies on the ASX.

Long story short, the ASX is facing a Brave New World. Suddenly, one of its largest holdings might be a cryptocurrency giant. A giant with almost US$363 million worth of Bitcoin on its books, no less. That’s a different look for the ASX 200 than what most of us are used to!

The post Afterpay (ASX:APT) and Bitcoin, a marriage made in crypto heaven? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of Bitcoin, Ethereum, and Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Bitcoin, Ethereum, and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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 Australian Strategic Materials Ltd (ASX: ASM) share price is surging to fresh all-time highs on Friday, up 13.16% to $9.80.

ASM is an integrated critical metals business, hoping to become an independent, net zero-carbon supplier of critical metals.

The company owns the Dubbo project in Western Australia, with hopes of leveraging the project’s rare earths and oxide production to supply its strategic plants around the world that produce high-purity metals.

What’s driving the ASM share price?

There’s been a lot of hype around the lithium and renewables sector, with household names such as Galaxy Resources Limited (ASX: GXY), Pilbara Minerals Ltd (ASX: PLS), Orocobre Limited (ASX: ORE) and Lynas Rare Earths Ltd (ASX: LYC) all making fresh record highs in the past month.

The sector has been supported by a stream of positive news such as President Joe Biden’s executive order aimed at making at least half of all new vehicles sold in 2023 electric and higher spot prices for critical metals such as lithium and rare earths.

This narrative bodes well for the ASM share price, which aims to produce highly relevant materials from the Dubbo project including titanium, zirconium and rare earths. And transform these raw materials including powders, alloys and magnets.

ASM enters major framework agreement with South Korean investors

The last piece of price-sensitive news from ASM was its conditional exclusive framework agreement with a consortium of South Korean investors on 21 July.

The agreement would see three respected South Korean private equity firms, Cerritos Holdings Co. Ltd, Kamur Partners LLC and ACE Equity Partners LLC establish a consortium fund to subscribe to a $20 equity interest stake in ASM.

The agreement also included a ten-year offtake agreement of up to 2,800 tonnes per annum of neodymium-iron-boron alloy from ASM’s Korean Metals Plant.

The funding will support ASM’s goal of developing the Dubbo project.

The ASM share price surged 8.78% to $8.05 on the day of the announcement.

Between 21 July and 12 August, ASM shares would trade sideways, retreating from highs of $8.95 and bouncing off lows of $8.

After this brief period of consolidation, ASM would stage the breakout we’re seeing today, surging 12.37% to $9.73.

The post Australian Strategic Materials (ASX: ASM) share price soars 10% to all-time high, here’s why. 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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