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The Apollo Minerals Ltd (ASX: AON) share price has jumped firmly into the money this morning.

Today’s leap into the green comes after the company announced a major zinc and lead discovery from its drilling program at Kroussou, Western Gabon.

Let’s take a closer look at what’s happening with the Apollo Minerals share price today .

What did Apollo announce?

In its release, Apollo confirmed the discovery of “high-grade zinc and lead mineralisation within 40m of [the] surface” at its Kroussou project.

The results “could allow for simple open pit mining extraction” of the minerals, according to the company.

Apollo is adamant drilling will continue to yield positive results, with “multiple opportunities for further discovery” at the Kroussou site.

As such, Apollo anticipates “strong news flow” and expects further results from assays that are currently pending at the site.

Speaking on the assay results, Apollo’s executive directory Neil Inwood said:

These first drilling results confirm the potential of the Dikaki Prospect and of the larger Kroussou system… The results highlight a shallow, flat-lying, broadly mineralised system, with potential for mineralisation to link up across multiple areas; demonstrating that Kroussou has the potential to deliver a significant, large scale, base metal project.

Apollo intends to continue with further assays and exploration at the site.

A bit more on Apollo Minerals

Apollo Minerals is in the business of minerals exploration. Its key interests are located at the Kroussou zinc-lead project, located in Western Gabon, Africa.

The company also has gold projects at its projects in Southern France and Spain.

At the time of writing, Apollo has a market capitalisation of $27 million.

Apollo Minerals share price snapshot

The Apollo Minerals share price has posted a year to date return of around 80%, extending the previous 12 month’s return of more than 250%.

These returns have far outpaced the S&P/ASX 200 Index (ASX: XJO)’s return of ~20% over the last year.

The Apollo Minerals share price is trading near its 52-week high of 14 cents, and aloft the 52-week low of 2.4 cents.

The post The Apollo Minerals (ASX:AON) share price has rocketed 37%. Here’s why appeared first on The Motley Fool Australia.

More reading

• Macquarie picks the best ASX shares to buy for the August reporting season
• Here’s why the Service Stream (ASX:SSM) share price is halted
• Oil Search, Zip, JB Hi-Fi share prices jump, Aussie predicted to hit US$0.70, Scott Phillips on Nine’s Late News
• ASX 200 midday update: Kogan FY 2021 update, Altium sinks
• Why Apple Stock floated higher on the NASDAQ on Tuesday

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 rolling COVID-19 lockdowns to hit our major cities will leave a mark on next month’s reporting season, but a top broker believes these ASX shares will outperform.

The Australian economy is likely to contract in the September quarter. This is threatening to derail the ASX’s best earnings upgrade cycle in decades.

Against this backdrop with more than half of the country’s population living in lockdown, the analysts at Macquarie Group Ltd (ASX: MQG) highlighted several ASX shares to buy.

ASX earnings growth under a COVID cloud

“Australia’s run of positive EPS [earnings per share] revisions – the best in decades – is into its 11th month,” said Macquarie.

“The key drivers were banks and resources; but both are cyclicals, and the cycle is slowing. Results for 2H21 should beat expectations, but this makes for a tougher comp for FY22.”

Best ASX shares to buy for the reporting season

In this regard, the broker reckons the best ASX shares to buy ahead of the August reporting season are the COVID losers.

This is despite this group taking another beating from the current string of lockdowns to hit New South Wales, Victoria and South Australia.

Talk about a contrarian trade! ASX shares that are suffering under lockdowns are likely to provide dour outlooks. No one knows how long these lockdowns could go on for.

How ASX COVID losers could turn into winners

But Macquarie isn’t fussed. It pointed out that the COVID hit to profits isn’t expected to be as significant as it was in 2020.

“A miss on results could also cause a sell-off in these stocks, but we would buy the dips in re-opening plays, as they offer growth within a slowing cycle,” said the broker.

Macquarie’s best buy ideas for ASX shares favour defensives, growth and capital returns.

Defensive ASX shares to buy now

The defensive ASX shares that it likes includes the Amcor CDI (ASX: AMC) share price and Brambles Limited (ASX: BXB) share price, just to name a few.

Among the growth shares, it rates the Afterpay Ltd (ASX: APT) share price a buy even as expert opinion is dividend on its outlook.

Increasing competition and high valuation have taken the gloss out of the Buy Now, Pay Later (BNPL) posterchild.

Other ASX growth stocks on Macquarie’s buy list include the Charter Hall Group (ASX: CHC) share price, Resmed CDI (ASX: RMD) share price and SEEK Limited (ASX: SEK) share price.

Capital return hopefuls to add to wishlist

The ASX shares that are likely to deliver capital returns that the broker rates a “buy” include three iron ore miners. These are the BHP Group Ltd (ASX: BHP) share price, Fortescue Metals Group Limited (ASX: FMG) share price and Deterra Royalties Ltd (ASX: DRR) share price.

Outside of these ASX miners, Macquarie also added the Ampol Ltd (ASX: ALD) share price as a capital return “buy” idea.

The post Macquarie picks the best ASX shares to buy for the August reporting season appeared first on The Motley Fool Australia.

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• This ASX share doubled market returns but is still cheap: expert
• The BHP (ASX:BHP) share price is up 8% in the past month. Here’s why
• Forecast crash in Aussie dollar to under US70 cents to boost these ASX 200 shares

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Deterra Royalties Limited, and Fortescue Metals Group Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Amcor Limited. The Motley Fool Australia has recommended ResMed Inc. and SEEK 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 Service Stream Limited (ASX: SSM) share price isn’t going anywhere today. This comes after the essential network services provider entered into a trading halt early this morning on the ASX.

Looking at yesterday’s market close, Service Stream shares last traded at 96 cents.

Why did Service Stream put a halt on its shares?

In today’s statement, Service Stream advised it is launching a capital raise to acquire 100% of Lendlease Services Pty Ltd.

A subsidiary of parent company, Lendlease Group (ASX: LLC), the Services business is a leading provider of essential network services across telecommunications, utilities and transportation sectors. This includes wireless and fixed-line network infrastructure, maintenance of electricity, water, and industrial assets, as well as roads and tunnels.

To fund the $310 million acquisition, Service Stream is seeking to undertake a capital raise of $185 million. This will consist of a $123.1 million fully underwritten 1-for-3 entitlement offer and a $61.9 million fully underwritten placement. All shares under the offer will be issued at 90 cents apiece, with approximately 205.6 million new ordinary shares being added.

The remaining $123 million shortfall for the transaction will be sourced from the company’s expanded debt facilities and available cash.

Service Stream expects the takeover to be highly accretive to Service Stream shareholders. Earnings per share (EPS), excluding one-off costs are forecasted to increase by around 30% on an FY22 pro forma basis.

The combined group FY22PF (pro forma) revenue is forecasted to reach roughly $1.7 billion. Furthermore, earnings before interest, tax, depreciation and amortisation (EBITDA) for FY22PF is estimated to be $120 million to $125 million.

The acquisition has received pre-approval from the Australian Competition and Consumer Commission (ACCC) and is not subject to any further regulatory approvals.

Service Stream managing director, Leigh Mackender said:

The acquisition is highly complementary to Service Stream’s existing business, expanding our utility operations, delivering an established transportation infrastructure division and enhancing Service Stream’s contracted operations within the telecommunications sector.

The Acquisition will further diversify Service Stream’s revenues, bolster the scale and depth of our operations and expand the Group’s immediate and future addressable markets to support ongoing growth.

About the Service Stream share price

Over the last 12 months, Service Stream shares have failed to take off, resulting in losses of almost 50%. The company’s share price is near its 52-week low of 83 cents reached in May.

Service Stream presides a market capitalisation of about $393 million, with 410 million shares currently on its books.

The post Here’s why the Service Stream (ASX:SSM) share price is halted appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Kogan FY 2021 update, Altium sinks

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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Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Tuesday night to discuss the renewed interest in Oil Search Ltd (ASX: OSH), Bank of America buys more shares of Zip Co Ltd (ASX: Z1P), and forecasts for a (much) lower Aussie dollar.

The post Oil Search, Zip, JB Hi-Fi share prices jump, Aussie predicted to hit US$0.70, Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Scott Phillips owns shares of Alphabet (C shares) and Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Alphabet (A shares), Alphabet (C shares), Amazon, Netflix, Tesla, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Netflix. 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) is back on form and charging higher following a strong night on Wall Street. The benchmark index is currently up 1.2% to 7,339.8 points.

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

Kogan business update

The Kogan.com Ltd (ASX: KGN) share price is bouncing around today following the release of a business update. According to the release, Kogan expects to report full year gross sales of $1,177.7 million and adjusted EBITDA of $61.1 million. This represents year on year growth of 52.5% and 23.1%, respectively. While the latter was a sharp slowdown on its first half growth, it was in line with the guidance given in May. Management also revealed that its inventory issues have been easing.

Altium shares sink

The Altium Limited (ASX: ALU) share price is sinking on Wednesday. This appears to have been driven by news that Autodesk has walked away from takeover talks. The US software giant told Reuters: “We are not commenting on matters with Altium but can confirm that acquisition discussions have ceased at this time.” Investors appear to have been expecting Autodesk to return with an improved offer after Altium rejected its $38.50 per share proposal.

Lendlease sells services business

The Lendlease Group (ASX: LLC) share price is rising today after the international property and infrastructure company announced the sale of its Services business. According to its release, Lendlease has entered into an agreement with Service Stream Ltd (ASX: SSM) to sell the business for $310 million. Management advised that the sale aligns with its strategy to be more focused on the areas where its competitive edge is the strongest.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Pilbara Minerals Ltd (ASX: PLS) share price with a 5.5% gain. A number of lithium shares are pushing higher today. The worst performer on the ASX 200 has been the Altium share price with a 3.5% decline. This follows the collapse of takeover talks with Autodesk.

The post ASX 200 midday update: Kogan FY 2021 update, Altium sinks appeared first on The Motley Fool Australia.

More reading

• Lendlease (ASX:LLC) share price edges higher on divestment news
• Why the Altium (ASX:ALU) share price is sinking 5% on Wednesday
• Kogan (ASX:KGN) share price falls on business update
• Yes, the ASX is due for a correction. But don’t worry
• 2 ASX 200 shares that could be buys for dividends

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Altium and Kogan.com 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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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.

What happened

Joining the rest of the stock market in bouncing, Apple (NASDAQ: AAPL) shares defied gravity on Tuesday and levitated a solid 3% through 1:25 p.m. EDT.

Helping the tech giant recover from yesterday’s selling was a positive analyst note from investment banker UBS.

So what

One day after analysts at Deutsche Bank said that they see “strong momentum across all of [Apple’s] businesses,” and investment bank Bernstein predicted a modest beat by Apple in its upcoming third fiscal quarter of 2021, UBS chimed in today with a reiterated buy rating of its own.

“Based on strength in iPhones in what is typically a seasonally slower quarter and better Mac sales despite supply chain headwinds,” StreetInsider.com reported, UBS said it was raising its third-quarter 2021 revenue and EPS estimates to $74.7 billion and $1.01, respectively, from $71.3 billion and $0.95.

Now what

So, are $74.7 billion in sales and $1.01 EPS good or bad?

For that, you need to know the context. Wall Street analysts on average predict that Apple’s sales grew 22% year over year in the third quarter, to $72.9 billion, and that Apple earned about $1 per share — 56% better than last year. Relative to those predictions, UBS is only about 1% ahead of the Street on its prediction of Apple’s earnings. (Indeed, UBS admits as much.)

More significantly, though, UBS seems to think that Apple beat Street projections by 5 full percentage points on sales. And if Apple can overcome supply chain issues to acquire all the computer parts it needs, to sell all the PCs, iPads, and iPhones its customers want, UBS says further upside is possible.

So it’s no wonder investors were happy to hear the UBS prognosis.

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

The post Why Apple Stock floated higher on the NASDAQ on Tuesday appeared first on The Motley Fool Australia.

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Rich Smith 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 Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. 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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Piedmont Lithium Inc (ASX: PLL) shareholders have been given a rude awakening on Wednesday. The miner’s shares have slid 21% to 68.5 cents at the opening of trade.

There was no price-sensitive news from the company this morning. So what could possibly warrant a 20% fall in the emerging lithium producer’s shares?

Why the Piedmont Lithium share price is tumbling

Reuters has flagged a major shortcoming for Piedmont Lithium’s plans to become the “USA’s number one lithium hydroxide producer”.

According to Reuters, “The company [however] has not applied for a state mining permit or a necessary zoning variance in Gaston County, just west of Charlotte, despite telling investors since 2018 that it was on the verge of doing so.”

“Five of the seven members of the county’s board of commissioners, who control zoning changes, say they may block or delay the project because Piedmont has not told them what levels of dust, noise and vibrations will occur, nor how water and air quality would be affected.”

These permitting issues might be the catalyst behind the sharp 20% decline in the Piedmont Lithium share price this morning.

When did they expect to receive these permits?

According to a company presentation from November 2020, permitting for spodumene concentrate production and its chemical plant were expected to be complete by mid-2021.

Reuters said that, “Piedmont had been set to meet with commissioners in March, but canceled with three days’ notice, further straining the relationship. Piedmont said it canceled that meeting in order to further refine its plans.”

What’s next for the Piedmont Lithium share price?

Reuters reported that Piedmont President and CEO Keith Phillips expects to apply for a state mining permit this summer (June–August). With this permit they would aim to begin construction in April 2022 and production in the second half of 2023.

With today’s change, Piedmont Lithium’s market capitalisation is $1.37 billion.

The post Piedmont Lithium (ASX:PLL) share price opens 20% down on Wednesday appeared first on The Motley Fool Australia.

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• ASX lithium shares are surging on Tuesday. Here’s why
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• Why Magellan, Origin, Piedmont Lithium, & WiseTech Global are dropping

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 Piedmont Lithium Inc. 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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Temple & Webster Group Ltd (ASX: TPW) could be a good ASX share to think about for a few different reasons.

If you haven’t heard of Temple & Webster before, it’s a leading pure play online retailer of furniture and homewares in Australia. It has a wide product catalogue and the model is that items are shipped directly to customers by suppliers, which helps with faster delivery times and reduces inventory requirements. Temple & Webster does have its own private label range sourced from overseas.

But the business could be one to think about for the following reasons:

Tailwind of online shopping

The company believes that COVID-19 has permanently accelerated online adoption in the Australian furniture and homewares market.

Temple & Webster estimates that more than 20% of furniture and homewares was bought online in the US during the COVID-affected year of 2020. The company believes Australia is following the same trajectory.

The ASX share has estimated that in 2020, around 9% of Australian furniture and homewares were bought online, an almost doubling of the 5% bought in 2019. It’s expected that online penetration in both markets is expected to continue to increase significantly.

Investing to achieve greater scale

Temple & Webster has a plan to capitalise on this e-commerce opportunity. Management believes there is potential for significant online market growth and longer-term returns.

There are a number of different things that the business is focused on.

It wants to build strong brand awareness to achieve national brand status within the next three years by investing in mainstream media to drive both first time and repeat customers. The company wants to increase its conversion rate of customers.

Temple & Webster wants to improve its customer experience through better technology, data and personalisation, and delivery experience. This will include improve its 3D and artificial intelligence capabilities to make the customer shopping journey easier.

The company wants to grow its business to business sales and operational teams so that it can win market share in the commercial sector.

A final focus is improving its product range with new category additions, private label expansion, new products and exclusive ranges from suppliers.

Rapid growth

Temple & Webster is expecting to see a low single digit earnings before interest, tax, depreciation and amortisation (EBITDA) margin as it grows. But it’s still expecting “strong double digit revenue growth” during this investment period.

Growth had continued into the 2021 calendar year after a high level of growth in 2020. The third quarter of FY21 saw revenue growth of 112% against the prior corresponding period. April 2021 revenue rose more than 20% year on year, despite April 2020 being a big month for e-commerce sales.

After a few years of growth at low EBITDA margins, Temple & Webster is then expecting higher longer-term profit margins with advantages like better supplier terms, more repeat customers (lowering advertising costs), a slowing investment in fixed costs and higher gross profit margins from a higher percentage of exclusive products.

Temple & Webster CEO Mark Coulter said:

You only need to look at the US to see how the e-commerce market is playing out, and why we remain bullish about the shift from offline to online. We are at the start of this once in a generation shift, and now is the time to put our foot down to secure market leadership and ensure we are the brand for the next generation of furniture shopper.

The post 3 reasons why the Temple & Webster (ASX:TPW) share price could be a buy appeared first on The Motley Fool Australia.

More reading

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• These are the 10 most shorted ASX shares
• Why is the Temple & Webster (ASX:TPW) share price up over 3% today?
• 3 ASX shares growing at a rapid rate
• Brokers name 3 ASX shares to buy today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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 Carbonxt Group Ltd (ASX: CG1) share price is rocketing in late morning trade, up more than 11%.

The ASX small-cap company is focused on producing specialised Activated Carbon (AC) products, including Powdered Activated Carbon (PAC) and AC pellets. These are used to help remove toxins and other pollutants created from industrial processes.

Below we take a look at the company’s latest sales update.

What update did Carbonxt report?

Carbonxt’s share price is soaring today after the company reported it has signed a new US$2 million (AU$2.7 million) contract to supply 1,000 tons of AC Pellets. The pellets will be delivered by the end of December.

The order comes from an existing power station customer in the US state of Wisconsin. Carbonxt will supply the pellets from its Arden Hills facility, located in the neighbouring state of Minnesota. This will see the plant return to full manufacturing capacity.

With the new contract, the Wisconsin power station’s total order value has increased from US$3 million to at least US$5 million. The company reports it will realise all the revenue in the current financial year.

Commenting on the new contract, Carbonxt’s managing director Warren Murphy said:

This scaled up order from a reliable and long-term customer reflects the steady and progressive revenue growth Carbonxt is now experiencing. To ensure we can reliably deliver the increased tonnage of AC pellets, we have been able to quickly implement new manufacturing processes at Arden Hills that do not compromise product quality or our margins.

With the permit for construction of its plant in the US state of Kentucky pending, and its Arden Hills facility running double shifts, “It is imperative that we commission the planned Kentucky facility in order to capture greater market share and pursue new sector opportunities.”

Carbonxt hopes update the market on this “in the very near-term”.

Carbonxt share price snapshot

Over the past 12 months the Carbonxt share price remains down 15%, compared to a 22% gain on the All Ordinaries Index (ASX: XAO) over that same time.

With today’s intraday gains factored in, Carbonxt’s share price has outperformed in 2021, up 22% year-to-date.

The post Why the Carbonxt (ASX:CG1) share price is rocketing 11% higher today appeared first on The Motley Fool Australia.

More reading

• Piedmont Lithium (ASX:PLL) share price opens 20% down on Wednesday
• 3 reasons why the Temple & Webster (ASX:TPW) share price could be a buy
• What’s up with the 29Metals (ASX:29M) share price today?
• The Beach Energy (ASX:BPT) share price wobbles after quarterly update
• PointsBet (ASX:PBH) share price rises on bullish broker note

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 29Metals Ltd (ASX: 29M) share price is on the move this morning following the company releasing its latest quarterly report.

The copper and precious metals mining company’s quarterly report is the first it’s released since it floated on the ASX earlier this month.

At the time of writing, the 29Metals share price is down 1.38% on the back of its report. Its shares are currently swapping hands for $2.15.

However, earlier today the 29Metals share price was $2.23 – 2.24% higher than its previous closing price.

The news driving the 29Metals share price

The 29Metals share price is wavering as the market responds to the company’s first quarterly report as an ASX-listed company.  

The company’s copper production is on track to finish the year within the company’s full-year guidance. However, its production of gold, zinc, silver, and copper equivalent is sitting at less than half the year’s predicted production at the 6-month mark.

29Metals also announced it reaped $233.5 million (after costs) from its Initial Public Offering (IPO).

Its Capricorn (Queensland) and Golden Grove (West Australia) sites’ combined cash balance as of 30 June, and the company’s unaudited corporate cash balance as of 19 July 2021, is $183.8 million. The company has unaudited debt worth US$150 million.

The company reports both its Capricorn and Golden Grove projects are managing COVID-19 border restrictions.

Let’s take a closer look at what’s driving the 29Metals share price.

Capricorn project

The company mined 395 kilotons of ore at the Capricorn project over the quarter just been. During the same period, it milled 430 kilotons of ore, an increase on the quarter prior.

Capricorn’s costs for the quarter were $5 million less than the previous quarter. The company spent $41 million at the project over the June quarter.  However, it brought in $63.6 million over the 3 month period.

Golden Grove project

Employees at the Golden Grove project were impacted by Tropical Cyclone Seroja in April but the company reported no infrastructure damage.

The Golden Grove project saw 423 kilotons of ore mined and 369 kilotons milled over the June quarter. That’s respectively 65 kilotons and 91 kilotons more than the quarter prior.

Golden Grove’s net direct cash costs for the quarter were $4 million. That’s a decrease on the previous quarter’s costs, driven by an increase in by-product sales.

Over the quarter, Golden Grove earned 29Metals $129 million.

Commentary from management

29Metals CEO and managing director Peter Albert commented on the results driving the company’s share price today:

29Metals delivered a strong June quarter relative to the March quarter, as expected, with improved production performance across all metals at both operating sites… June quarter performance, combined with progress against our pipeline of organic growth opportunities, has positioned the company for a successful year in 2021 and beyond. It was important to demonstrate delivery of our plan following our listing and successful completion of the IPO at the beginning of July, tremendous milestones for 29Metals after many months of hard work.

29Metals share price snapshot

The 29Metals share price has gained around 8% since it listed on the ASX.

It has a market capitalisation of around $1 billion, with approximately 480 million shares outstanding.

The post What’s up with the 29Metals (ASX:29M) share price today? appeared first on The Motley Fool Australia.

More reading

• Why the 29Metals (ASX: 29M) share price has surged 12% since its IPO
• 29Metals (ASX:29M) slips on biggest ASX mining debut in a decade

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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