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The National Australia Bank Ltd (ASX: NAB) sounded the alarm today on Australia potentially entering a recession this year.

The NAB share price appears unfazed by the forecast, currently up 1.27% to $27.03 in intraday trading.

What’s this about a second recession?

Until the COVID-19 pandemic struck in early 2020, Australia had enjoyed a world-beating run of almost 30 years without a recession.

A recession, if you’re not familiar, is when a nation’s GDP falls 2 or more quarters in a row.

Australia’s enviable growth run ended last year when lockdowns shuttered much of the business activity and GDP slipped in both the March and June quarters.

While economists are widely forecasting that GDP will retrace in the current (September) quarter, most analysts – including those at the Reserve Bank of Australia (RBA) – are expecting to see some growth for the 3 months ending 30 June.

The economics team at NAB isn’t convinced.

As the Australian Financial Review reports, the bank had been forecasting a 0.4% increase in GDP for the June quarter. That includes “a small detraction of 0.2 percentage points due to Australia’s balance of trade”.

Now, however, NAB’s director of economics and markets Tapas Strickland believes that detraction will be between 1.0–1.9%. And if that loss isn’t “made up elsewhere, [it] could see Q2 GDP flat or even potentially negative,” according to Strickland.

Noting the risk, Strickland said:

NAB is currently characterising it as a risk given we haven’t seen many other GDP partials to date. With Q3 already likely to be deeply negative, it does raise the potential for the ‘R’ word even before we get to Q4.

The bank’s gloomier forecast is based on falling export volumes in the June quarter, mostly iron ore, Australia’s top export earner. Which, as the AFR notes, NAB believes probably won’t be offset by increased inventories. That’s because production caused the slowdown, not shipping.

Whether the RBA has this one right or NAB, Australians will likely be eagerly eyeing an end to lockdowns with hopes the December quarter will see a return to growth.

NAB share price snapshot

NAB’s share price gained 54% over the past 12 months. That’s more than twice the 24% increase posted by the S&P/ASX 200 Index (ASX: XJO).

Year-to-date the NAB share price has continued its strong performance, up 18% in 2021.

The post NAB (ASX:NAB) share price lifts despite recession warning appeared first on The Motley Fool Australia.

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

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The De Grey Mining Limited (ASX: DEG) share price has tanked more than 8% in Monday trading.

Shares in the mining company are deep in the red despite the company releasing promising drill results earlier this morning.

Let’s take a closer look at what the company announced and why the De Gray share price might be falling.

De Grey share price falls despite drilling extension

Earlier today, De Grey provided the market with encouraging results from its Eagle deposit at the company’s Hemi Gold Discovery in Western Australia.

According to the update, the new results show the potential to increase its Hemi mineral resource estimate (MRE).

De Grey provided drilling results after extending the footprint of its Eagle deposit by 240 metres to the west of the MRE.

For section 28000E, De Grey reported 31 metres at 3.6 grams per tonne of gold from 241 metres. In addition, the company reported strike at 81 metres at 0.5 grams per tonne of gold from 51 metres.

At section 28160E, De Grey reported 33 metres at 1.8 grams per tonne of gold from 109 metres.  

In addition, the company also reported significant results from depth and width extensions.

For section 28240E, the company reported strike at 121m at 1.1 grams per tonne at 146 metres and 21 metres at 1.7 grams per tonne at 4.4 metres.

De Grey’s General Manager of Exploration Phil Tornatora commented:

“These new results at Eagle continue to demonstrate the potential for De Grey to rapidly and cost effectively grow the footprint and depth extent of the mineral resource at Hemi and follow the results announced for Diucon in July.”

Foolish Takeaway

The West Australian miner focuses on gold exploration and development activities. De Grey has 100% ownership of the Mallina Gold Project in the Pilbara region which is also the site of its flagship Hemi Gold Project.

Late last month, the miner also reported at Hemi.

De Grey noted that drilling will continue at its Eagle and Diucon deposits to increase the confidence level of the resource estimate.

Despite today’s positive rhetoric, the De Gray share price has fallen hard in today’s session.

At the time of writing, the De Grey share price is trading 6.7% lower for the day at $1.185. Shares in the gold miner were down more than 8% earlier, after hitting an intra-day low of $1.145.

Even though De Gray’s share price is deep in the red today, shares in the mining company remain more than 16% higher for the year.

The post De Grey Mining (ASX:DEG) share price falls amid drilling extension news appeared first on The Motley Fool Australia.

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• The De Grey (ASX:DEG) share price is soaring today. Here’s why

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

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The Core Lithium Ltd (ASX: CXO) share price won’t be going anywhere on Monday after the company requested a trading halt.

What’s the trading halt for?

The trading halt was requested on the basis of a pending capital raising announcement.

The company advised its shares will remain halted until Wednesday, 11 August or until the announcement is released to the market.

The pending capital raising comes right after the Core Lithium share price surged 14.29% last Friday to a 7-month high of 36 cents.

June quarterly activities report

According to the company’s activities report, Core Lithium had a cash and cash equivalents position of $38.18 million at the end of the June quarter.

During this period, the company delivered a number of milestones including the completion of its definitive feasibility study (DFS) for its Finniss lithium project. The study was a finalised extension scoping investigation outlining long-term lithium production plans for Finniss and secured a port operating agreement at Darwin Port.

Core Lithium has branded itself “Australia’s most advanced new lithium project on the ASX” and “at the front line of new global lithium production”.

The company is targeting construction to begin in 2H 2021 with production to commence as soon as 2H 2022.

Definitive Feasibility Study

Core Lithium believes its DFS demonstrates the Finniss Project’s economics as “compelling, with low capital costs and competitive operating costs that result in strong operating margins and rapid payback”.

The DFS highlights an average annual production of 175,000 lithium spodumene per annum with a mine life of 8 years and a payback period of 2 years.

The company is currently undergoing a stage 1 extension scoping study to increase production and add a further 2 years to mine life.

Looking ahead, the company recently announced exploration targets with the “potential to significantly add mineral resource tonnes and support further extensions and potential stage 2 expansion of Finniss”.

The post Why is the Core Lithium (ASX: CXO) share price halted? appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun owns shares of Core Exploration Ltd. 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 4DMedical Ltd (ASX: 4DX) share price is ripping ahead today. This follows the company’s latest announcement regarding a commercial contract.

At the time of writing, shares in the medical imaging software company are 12% higher to $1.67.

Let’s unpack the latest announcement.

Breaking ground

Investors are bidding up the 4DMedical share price today on the company’s latest news. According to the release, the excitement stems from the signing of a commercial contract with Novartis AG (SWX: NOVN). For those unaware, Novartis is a Swiss multinational pharmaceutical company. It boasts a market capitalisation of roughly A$306 billion, making it one of the largest pharmaceutical companies in the world.

Furthermore, the contract with Novartis involves the commercial use of 4DMedical’s XV Lung Ventilation Software (XV LVAS). The deal is a first for the ASX-listed small-cap, being the first commercial use of XV LVAS in the pharmaceutical industry.

The agreement will see the respiratory imaging platform used to assess patient outcomes in a clinical program focused on novel therapies to treat Chronic Obstructive Pulmonary Disease. Additionally, the program will be conducted at the University of Miami in the United States.

However, the company noted the contract is not monetarily significant for its business at this stage. Despite that statement, the announcement is clearly positive for the 4DMedical share price today.

Commenting on the news, 4DMedical founder and Chief Executive Officer, Andreas Fouras said:

The program will further validate the application of XV LVAS to improving the lives of those living with COPD, which remains a key indication for the Company’s technology. Whilst the contract is not substantial in terms of revenue at this stage, it also represents the beginning of our commercial relationship with Novartis and expands our commercial product offering to the pharmaceutical and medical device industries.

4DMedical share price snapshot

It has been a volatile past year for the 4DMedical share price. At one point the company’s shares were going for as much as $2.98 before gradually falling to a low of $1.12. Despite the volatility, investors have snagged an 8.2% return over the past 12 months.

Since July, optimism appears to have returned to an extent. This coincides with the release of 4DMedical’s fourth-quarter result.

The post 4DMedical (ASX:4DX) share price soars on contract with $305b pharma giant appeared first on The Motley Fool Australia.

More reading

• Here’s why the 4DMedical (ASX:4DX) share price is gaining 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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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.

The “buy now, pay later” (BNPL) craze hit fever pitch this week with payments giant Square (NYSE: SQ) making a $29 billion play for the global leader in the space, Afterpay. The company’s innovative twist on microlending is incredibly popular with young shoppers, making it prime real estate for companies that want to capture a slice of the future. 

The deal shines a light on other potential opportunities in the industry. E-commerce giant Shopify (NYSE: SHOP) has been working with BNPL provider Affirm Holdings (NASDAQ: AFRM) for the last year, and it owns 7.6% of the company’s stock. They recently took their partnership to the next level after Shopify integrated Affirm’s technology into its online merchant checkout process, allowing customers to directly finance their purchases. 

Let’s consider three reasons for Shopify to take Affirm fully under its wing.

1. Stronger together

Over 5.4 million consumers are actively using Affirm across 12,000 integrated merchants. When shoppers check out with Affirm, their purchase is financed at an annual percentage rate of 0% to 30% depending on their credit, with the option to repay the money in three, six, or 12 months. 

Affirm’s customer base is a drop in the bucket when you consider Shopify powers an estimated 1.75 million online stores, which are the primary focus of the partnership between the two companies. 

But focusing on the merchant side might be too one-dimensional. Affirm recently announced it will be launching the Affirm Card, a consumer-focused product that will allow shoppers to take advantage of BNPL anywhere they wish. It separates the Affirm experience from the shackles of its merchant system, and sets consumers free to take advantage of the same benefits at stores more suited to their needs. 

Shopify currently has 118 million registered users across its Shop virtual assistant platform and Shop Pay payments product, which is a substantial pool of consumers who might be enticed by the offer of a new-age replacement for their credit card. Square is already planning key Afterpay integrations with both its Seller platform (merchants) and its 70 million CashApp-using consumers, and this is a move Shopify could learn from.

2. Buy now, pay later drives sales

It probably comes as no surprise that financing consumer purchases with no fees and little interest encourages people to spend. But it might surprise you just how much.

Shopify is in the process of pitching its BNPL solution (powered by Affirm) to its merchants, and it has provided a series of selling points. The company claims it will increase conversion by 50%, reduce cart abandonment by 28%, and enable larger cart sizes because consumers have the flexibility to buy more.

Half of Affirm’s customers are either millennials or from Gen Z, and the company notes that 79% of this cohort shop using a smartphone. Its BNPL product is driving engagement, with 64% of transactions in fiscal 2020 made by repeat customers who spend $2,200 annually on average.

If Shopify absorbed Affirm, it would have the opportunity to unleash this across its ecosystem of over 100 million users, providing incredible benefits to its merchant base. 

3. They’re already partners

In July 2020, Affirm announced that it would partner with Shopify to power its new Shop Pay Installments feature, an attempt by Shopify to introduce BNPL to its merchants and customers. 

Affirm was still a private company at the time, and as part of the deal it handed over warrants that entitled Shopify to purchase up to 20.3 million shares in the company — equivalent to about 7.6% — for just $0.01 each. Affirm proceeded to list on the stock exchange in January this year, and Shopify maintains its stake worth about $1.3 billion today.

Since the two companies have been working on product integrations for the last 12 months, the merger into one company could be almost seamless. Shopify’s merchants are already familiar with the new features powered by Affirm, so if Shopify views BNPL as a big part of its future, then absorbing Affirm feels like the smart way to go.

Shopify has a market capitalization of over $190 billion compared to Affirm’s $17 billion, so an all-stock deal similar to the way Square acquired Afterpay would result in minimal dilution for shareholders, especially considering it already owns 7.6%. Shopify also has $7.7 billion in cash on its balance sheet, and although using it wouldn’t be ideal, it puts some options on the table (like a part-cash, part-debt deal, or a part-cash, part-stock agreement). 

But the most important thing is that BNPL represents an opportunity to capture highly engaged young shoppers, and the company’s merchants and shareholders alike stand to benefit greatly from that. 

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

The post 3 reasons Shopify should buy Affirm appeared first on The Motley Fool Australia.

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Anthony Di Pizio 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, Affirm Holdings, Inc., Shopify, and Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. 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.

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

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The Aurizon Holdings Ltd (ASX: AZJ) share price has been up and down in trade this Monday after the company reported its earnings for the 2021 financial year this morning. At the time of writing, Aurizon shares are up 0.25% to $4.07 a share.

Aurizon share price rises following dividend increase

• Aurizon raises dividend by 5%
• Revenues fall 1%, but earnings up
• Profits flat at $533 million
• Earnings per share rises 5%

What happened in FY21 for Aurizon?

Aurizon has reported a revenue slump of 1% for FY21 to $3.019 billion, down from the $3.065 billion reported in the previous year (FY20). Despite this, Aurizon managed to grow its earnings before interest, tax, depreciation and amortisation (EBITDA) to $1.482 billion, up 1% from FY20’s $1.468 billion. However, net profits after tax (NPAT) were essentially flat, rising from $531 million in FY20 to $533 million for FY21.

As mentioned above, Aurizon has also announced a final dividend of 14.4 cents per share, franked to 70%, to be paid out to shareholders on 22 September. That represents a 5% increase in its total dividends for FY21 to 28.8 cents per share, up from last year’s 27.4 cents per share. Aurizon tells us that this dividend is “based on [the] 100% payout ratio of underlying continuing NPAT”.

Aurizon also managed to grow its earnings per share (EPS) by 5% as well, which went from 27.2 cents per share in FY20 to 28.5 cents per share for FY21. This was supported by Aurizon’s $300 million share buyback program, which was completed over FY21.

Aurizon largely blames coal volumes and pricing declines for the fall in EBITDA, pointing to a “challenging” Chinese market and the conclusion of contracts. That was despite a drop in operating costs over the period, thanks to lower fuel prices and maintenance costs.

These earnings are the first to reflect the sale of Aurizon’s Queensland rail terminal, which the company finalised back in March. The Aurizon share price dipped at the time on this news.

What did management say?

Here’s some of what Aurizon CEO Andrew Harding had to say on these results:

The Company has delivered solid operational and financial performance in challenging markets that have been  impacted by the COVID-19 pandemic and China import restrictions. We expect coal volume growth of around 5% in FY22, as markets recover and with Australian coal successfully redirected into alternative markets.

Our Bulk business has continued to perform well as it grows volumes and revenue with existing and new customers… We have aspirations to double the earnings of the Bulk business over the next decade. This includes organic growth, extending across the supply chain and acquisitions such as our new ports businesses in Newcastle and Townsville.

What next for Aurizon?

Aurizon has also given investors a glimpse as to what it sees ahead for FY22. The company tells us that it is expecting Group EDITDA to be “in the range of” $1.435 billion to $1.5 billion for FY22, which includes sustaining capital expenditure in the range of $475 million to $525 million.

Aurizon expects a 5% growth rate in coal volumes over the coming financial year, but also anticipates lower contract rates to offset lower costs. It’s also expecting continued revenue growth from its bulk business.

The Aurizon share price has had a subdued 2021 so far. The company is up 3.83% in 2021 so far, compared to the 12.97% the S&P/ASX 200 Index (ASX: XJO) has put on over the year to date. At the current share price, Aurizon has a market capitalisation of $7.47 billion, a price-to-earnings (P/E) ratio of 14.46 and a trailing dividend yield of 6.9%.

The post Aurizon Holdings (ASX:AZJ) share price wobbly on FY21 earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Aurizon 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 Westpac Banking Corp (ASX: WBC) share price is gaining today after the bank announced the sale of its life insurance business.

The bank advised Westpac Life Insurance Services Limited will go to TAL. This is a subsidiary of global life insurance services provider Dai-ichi Life Group.

TAL will pay $900 million for the business. It will also enter a strategic alliance to provide Westpac’s Australian customers with the service for another 20 years.

Right now, the Westpac share price is trading at $25.44. That’s 1.27% higher than its previous closing price.

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

Westpac opts out of life insurance

Today’s positive Westpac share price movement may be responding to the bank’s confirmation of the life insurance service sale.

According to Westpac, the divestment “releases significant capital”.

Westpac has lost a total of $1.3 billion (post-tax) on the sale. However, it will add around 12 basis points to Westpac’s Level 2 common equity Tier 1 capital ratio. 

The big bank will record a post-tax loss of $300 million for the life insurance business in its financial year 2021 results. The immediate loss mainly relates to transaction and separation costs.  

The remaining loss will the noted when the sale is completed, which is expected to be in late 2022.

Rumours of the sale have been swirling for months now, with TAL tipped as an interested party in June.

Commentary from management

Westpac’s group chief executive specialist businesses and group strategy Jason Yetton welcomed the news, saying:

This transaction is another step in simplifying the bank while continuing to help customers with their life insurance needs by partnering with TAL.

Life insurance is an important product for many Australians and this sale provides certainty for customers and new opportunities for our people with TAL.

TAL already offers insurance products to more than 4.5 million Australians and is well placed to help Westpac’s customers protect the people they love.

Westpac share price snapshot

The Westpac share price has had a good run lately.

It is currently 29% higher than it was at the start of 2021. It has also gained 47% since this time last year.

The post The Westpac (ASX:WBC) share price is higher today after sale update 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 Charger Metals NL (ASX: CHR) share price has rallied for four consecutive days, surging more than 100% from 21.5 cents to 52.5 cents.

Charger Metals successfully listed on the ASX on 9 July, raising $6 million at an issue price of 20 cents.

The company owns a majority interest in a number of prospective nickel, copper, cobalt, lithium and gold projects.

The purpose of the initial public offering was to fund the company’s exploration activities with the aim of defining valuable mineral resources that can be monetised either through further development or sale.

Why the Charger Metals share price surging

Renewables hype

Charger Metals portfolio is focused on critical metals used in industries such as battery storage, solar and electric vehicles.

As investors might have noticed, this sector has been on fire lately with other ASX-listed lithium developers and producers surging in the past month. This includes:

• Pilbara Minerals Ltd (ASX: PLS) up 42.95% to $2.13
• Galaxy Resources Limited (ASX: GXY) up 31.8% to $4.93
• Lake Resources N.L. (ASX: LKE) up 64% to 61 cents
• Core Lithium Ltd (ASX: CXO) up 56% to 36 cents

With all the above lithium companies surging in valuation, Charger Metals share price might be at the right place at the right time.

Prospective projects

Charger Metals has an interest in the following projects:

• A 70% interest in the Coates Nickel-Copper-Cobalt project
• An 85% interest in Coates North Project
• A 70% interest in the Bynoe Lithium and Gold project
• A 70% interest in the Lake Johnston Lithium and Gold project

In the company’s July presentation, it cited that lithium, nickel, copper and platinum group metals are “all metals in demand”.

Charger Metals described the Coates project as a “Julimar geochemical lookalike requiring drilling”.

For those that don’t know, the Julimar project is owned by Chalice Mining Ltd (ASX: CHN).

Chalice has described Julimar as a “globally significant discovery” with multiple prospects of high grade nickel, copper, platinum, cobalt and gold.

Chalice has been undergoing drilling activities at Julimar since March 2020. During this time, its share price has surged more than 1,000% from around 40 cents to $6.72 at the time of writing.

In addition, Charger Metals has described Bynoe as “fertile area close to a proposed Li mine” and Lake Johnson as a “large landholding with known spodumene”.

The post Here’s why the Charger Metals (ASX:CHR) share price has surged 100% in a week appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun owns shares of Core Exploration Ltd. 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 Novonix Ltd (ASX: NVX) share price is frozen today as the company prepares to release an announcement to the market.

The company requested the ASX halt the trading of its shares as it undertakes a strategic capital raise.

The Novonix share price finished Friday’s session trading for $3.02.

Let’s take a closer look at the graphite exploration and battery technology company’s trading halt.

Novonix freezes over

The Novonix share price is frozen while the company gears up to release news of a strategic capital raise.

Unless the freeze is extended, Novonix’s shares will begin trade when the company makes its next announcement, or when the market opens on 11 August, whichever comes first.

The capital raise comes at what appears to be an odd time for the Novonix share price.

Novonix’s latest quarterly cash flow report stated the company has enough cash to run its current operations for another 140 quarters. That’s a whopping 35 years’ worth of funding.

Additionally, Novonix underwent a capital raise in February. The capital raise saw Novonix raise approximately $115 million from institutional investors.

The funds were to go towards increasing the company’s anode materials production capabilities to 10,000 tonnes per annum.

It also intended to begin a share purchase plan (SPP) to raise another $15 million in March. However, the SPP was first delayed, then cancelled. The company said the SPP’s cancellation was due to fluctuations in the Novonix share price.

Finally, the company recently expressed interest in listing on the NASDAQ exchange.

We’ll soon find out if the strategic capital raise is to do with the potential dual listing.

Although, Novonix could be raising capital for entirely different reasons. Many market watchers are likely anticipating the company’s next announcement.

Novonix share price snapshot

It’s been a fantastic year on the ASX for the Novonix share price.

It has gained 143.5% since the start of 2021. It has also increased by 139.6% since this time last year.

The company has a market capitalisation of around $1.2 billion, with approximately 404 million shares outstanding.

The post Why is the Novonix (ASX:NVX) share price frozen today? appeared first on The Motley Fool Australia.

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• Australian Strategic Materials (ASX:ASM) share price stilled by trading halt
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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 Global Energy Ventures Ltd (ASX: GEV) share price is leaping higher today, up 6% at time of writing, having earlier posted gains of more than 9%.

The company is focused on delivering compressed shipping solutions to produce, store and transport compressed hydrogen to regional markets surrounding Australia.

Below we take a look at the ASX energy share’s announcement that appears to be driving ASX investor interest.

What did Global Energy announce?

Global Energy’s share price is surging after the company reported it has entered into a non-binding Memorandum of Understanding MOU) with Province Resources Ltd (ASX: PRL) and Total Eren on a new green hydrogen shipping study.

The partnership will help determine the feasibility, both commercial and technical, of exporting compressed hydrogen from the HyEnergy Project in Western Australia to select markets in Asia-Pacific, making use of Global Energy’s compressed hydrogen marine supply chain.

Following completion of the study, Global Energy hopes the partners of the HyEnergy Project will have sufficient confidence to select its C-H2 marine transport supply chain for green hydrogen exports in the next phase of project engineering.

Commenting on the MOU, Global Energy’s managing director Martin Carolan said:

The HyEnergy Project is an ideal green hydrogen export project for our compressed hydrogen shipping solution given its strategic location on the W.A. Gascoyne coastline, within a regional distance to multiple Asian markets with a future requirement for imported hydrogen.

Province Resources CEO, David Frances added:

The HyEnergy Project partners are keen to understand the benefits of compressed hydrogen in relation to other means of transporting our potential green hydrogen product to market. GEV are leaders in this technology and will bring that experience to the study.

The non-binding, non-exclusive MOU expires on 31 December 2022.

Global Energy share price snapshot

Over the past 12 months Global Energy’s share price has gained 18%, trailing the 25% returns posted by the All Ordinaries Index (ASX: XAO).

Year-to-date the Global Energy share price has struggled, down 11% in 2021.

The post Here’s why the Global Energy (ASX:GEV) share price is leaping higher today appeared first on The Motley Fool Australia.

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

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