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The AGL Energy Limited (ASX: AGL) share price has been having a hard time lately, falling a whopping 14.56% in the past 3 months.

Right now, shares in AGL are trading for $8.05. But, just 3 months ago, they were going for $9.41.

Over the last 90 days, the energy company announced its fleshed out demerger plans and said goodbye to its CEO and managing director.

Let’s take a look at what AGL has been up to lately.

The last 3 months for the AGL share price

It’s been a wild ride for the AGL share price.

AGL’s boss stepped down

The first news to rock AGL’s share price came on 22 April when the company’s CEO and managing director Brett Redman announced he was stepping down.

Redman stated he didn’t want to lead the company after its structural separation, which AGL announced in March.

Redman’s exit was effective immediately and AGL’s chair Graeme Hunt took on the position of interim CEO and managing director.

The AGL share price fell 2.87% in reaction to Redman’s walkout.

Confirmation of structural separation

The last time the market heard from AGL was on 30 June when the company confirmed its planned structural separation and explained how it will go ahead. It also provided guidance for the 2021 financial year.

The two pieces of news saw the AGL share price fall 9.99% over the course of the day.

Firstly, AGL announced the process in which it’s planning to create 2 ASX-listed energy companies.

It will begin by morphing AGL Energy into Accel Energy, a company that will generate electricity.

Accel Energy will then demerge to create AGL Australia. AGL Australia will focus on retailing, trading, storing, and supplying energy.

AGL plans to put the structural separation to a shareholder vote shortly so the split can be finalised before the end of 2021.

Updated guidance

While AGL’s guidance seems relatively neutral, it no doubt affected its plunging share price that day.

The energy company confirmed its underlying earnings would be in the range of its previous guidance.

It stated its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) would be in the lower half of its previous guidance of $1,585 million to $1,845 million.

Additionally, it said its underlying net profit after tax would be roughly in the middle of its previously predicted range of between $500 million and $580 million.

AGL also expects its earnings to be less in the 2022 financial year.

AGL share price snapshot

It goes without saying the AGL share price is having a bad year on the ASX.

Currently, it’s down 33% year to date. It is also 53% lower than it was this time last year.

The post Why the AGL Energy (ASX:AGL) share price has fallen 15% in 3 months appeared first on The Motley Fool Australia.

More reading

• It hasn’t been a great 2021 so far for the AGL (ASX:AGL) share price
• Top brokers name 3 ASX shares to sell today
• How did ASX renewable energy shares perform in FY21?
• Best and worst performing ASX sectors of financial year 2021
• AGL and Zip shares were among the most traded ASX shares last week

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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In afternoon trade on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record another gain. At the time of writing, the benchmark index is off its intra-day highs but up 0.2% to 7,346.1 points.

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

Alkane Resources Limited (ASX: ALK)

The Alkane Resources share price is down 8% to $1.13. This is despite there being no news out of the gold miner. However, with its shares up strongly over the last few months, today’s decline could be due to profit taking from some investors. The Alkane Resources share price is still up a decent 16% year to date.

Carsales.Com Ltd (ASX: CAR)

The Carsales share price is down 2% to $21.13. This decline may be due to news that fellow auto listings company iCar Asia Ltd (ASX: ICQ) has received a takeover approach today. Carsales has been touted as a potential suitor of iCar Asia numerous times over the last few years. Investors may be disappointed that it missed out.

Platinum Asset Management Ltd (ASX: PTM)

The Platinum share price is down 8% to $4.23. This follows the release of another disappointing funds under management update. That update revealed yet another decline in Platinum’s funds under management during the month of June. In addition to this, the fund manager advised that it expects to generate performance fees of just $0.3 million during the second half.

Stockland Corporation Ltd (ASX: SGP)

The Stockland share price is down 2% to $4.50. A number of real estate companies have come under pressure today. This is possibly due to concerns over the impact that COVID-19 lockdowns will have on their businesses. The S&P/ASX 200 Real Estate index is down 0.35% this afternoon.

The post Why Alkane, Carsales, Platinum, & Stockland shares are tumbling lower appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• How did the S&P/ASX All Technologies Index (XTX) perform in FY21?
• ASX 200 midday update: Nearmap rockets, Incitec Pivot jumps
• Why the Platinum (ASX:PTM) share price is sinking 7.5% on Tuesday
• Why Alkane, Audinate, Megaport, & Zip shares are rising today

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 carsales.com 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 Pilbara Minerals Ltd (ASX: PLS) share price has gone from strength to strength, rallying 460% in the past 12 months and 80% year-to-date.

It wasn’t long ago that tumbling lithium prices pushed the broader ASX lithium sector to the brink of collapse, with smaller players such as Alita Resources Ltd (ASX: A40) and Altura Mining Ltd (ASX: AJM) spiralling into administration.

Fast forward to today, a resurgence in lithium demand has helped rally the Pilbara Mineral share price well beyond its 2018 peak and into record territory.

From zero to hero

A year ago, the Pilbara Minerals share price was trading around 23 cents, backtracking the company’s valuation to when it was still undergoing drilling programs to identify its potential lithium resource.

Things were getting pretty ugly for Pilbara Minerals with its FY20 results flagging a net loss after tax of $99.2 million. This compares to its net loss after tax of $28.9 million in FY19.

By November 2020, however, lithium prices had finally begun to tick upwards and the Pilbara Minerals share price followed suit.

Between October and December 2020, the company’s shares rallied 178% to a 2-year high of 87 cents.

With the lithium market showing signs of promise, Pilbara Minerals made a bold move to acquire embattled lithium miner Altura on 28 October 2020.

This acquisition would see Pilbara Minerals acquire a “well-timed and cost-effective strategic acquisition” which neighbours its main Pilgan plant.

A bumper 2021 for the Pilbara Minerals share price

It’s been onwards and upwards for Pilbara Minerals, with the company’s shares joining the S&P/ASX 200 Index (ASX: XJO) on 12 March.

The company’s March quarter results highlighted record production of 77,820 dry metric tonnes (dmt) of spodumene concentrate at an annualised production capacity of approximately 330,000 tonnes per annum (tpa).

The quarterly announcement also advised that site works were underway to improve the project’s spodumene concentrate production to ~380,000 tpa.

Additional growth options are currently being explored, including a Pilgan Plant stage 2 expansion which could increase production capacity by another ~100,000 tpa.

On 25 June, Pilbara Minerals was pleased to announce that it plans to restart the production of Altura Mining operations.

This would see the company dust off the Ngungaju plant, with restart costs of approximately $39 million.

The Ngungaju plant is expected to be another growth driver, with an anticipated 180,000 to 200,000 dmt of production by mid calendar year 2022.

The post It’s been a massive year for the Pilbara Minerals (ASX:PLS) share price appeared first on The Motley Fool Australia.

More reading

• ASX lithium shares are surging on Tuesday. Here’s why
• These 3 ASX 200 shares were big movers this Monday
• Why is the Mineral Resources (ASX:MIN) share price up 4% today?
• Galan Lithium (ASX:GLN) share price surges to record on positive results
• Why this sector is lifting the ASX 200 higher today

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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The Boral Limited (ASX: BLD) share price has been a surprise performer over the past month. Boral shares were trading at $6.79 a month ago. But today, they are commanding a price of $7.38 a share. That’s an 8.76% gain for the past 30 days.

The S&P/ASX 200 Index (ASX: XJO) has actually gone backwards by 0.42% over the same period. As such, Boral has emerged as a real ASX 200 winner. That’s good news for a company that is sitting at the same share price today as it was back in November 2005.

Of course, the Boral share price performance over the month that was, had little to do with the company’s performance. Instead, it related to a rather dramatic saga that has been playing out since mid-June.

Boral has a stalker in the form of Seven Group Holdings Ltd (ASX: SVW). Seven put up an offer of $6.50 a share for Boral back in May. It subsequently upped this offer to $7.30 after enough shareholders accepted the cash that allowed Seven to increase its ownership of Boral to above 29.5%.

But Seven wasn’t done there. At the start of this month, Seven once again upped its offer. This time to $7.40 a share. This was followed by Seven further increasing its ownership of Boral to above 40%.

Following this latest chapter, there is now talk that Ryan Stokes will be requesting an additional seat on Boral’s board. Stokes is the Seven Group CEO and a current Boral board member.

Where to next for the Boral share price?

All of this toing and froing has seen the Boral share price gain significant interest from investors. No doubt helped along by Seven Group’s aggressive uptake of Boral stock.

But since the takeover bid officially closes on 15 July (this Thursday), where is the Boral share price headed to next?

Well, it’s hard to say. Seven Group may have some plans that aren’t yet clear to the markets. Seven seems to have kept both investors and Boral guessing at every turn over the past month.

But a report in today’s Australian Financial Review (AFR) had a go. The AFR reckons Boral shares are “expected to fall back towards $7 a share, and possibly as low as $6.80” once the bid is completed. However, the report also noted that “the stock will be supported by the fact it contains cash worth about $3.20 a share”.

Additionally, it cites the fact that Boral will be reporting its full-year earnings next month. The AFR claims that if these earnings “include materially weaker profit numbers from the Australian business, it will justify the tough approach taken by [Ryan] Stokes”.

At the current Boral share price of $7.39 (at the time of writing), the company has a market capitalisation of $8.47 billion.

The post The Boral (ASX:BLD) share price is up 9% in a month. What’s next? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares were big movers this Monday
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• Here are 3 of the most traded ASX 200 shares today
• Boral (ASX: BLD) share price lifts as Seven gets increased stake
• Here are the 3 most traded ASX 200 shares on the market today

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 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 Bubs Australia Ltd (ASX: BUB) share price is having a great month, despite no news having been released by the company in more than 3 weeks.

Right now, shares in Bubs are trading for 50 cents apiece. This time last month, they were going for 39 cents each. Those figures represent a 28.21% increase in the Bubs share price over the last 30 days.

While that’s impressive, perhaps more so is the fact the gains have all come off the back of a single announcement to the market.

Let’s take a look at the news driving the Bubs share price.

International ambitions

On 18 June, Bubs announced it’s set to break into the United States infant nutrition market with its Aussie Bubs range of formulas.

According to the company, the US market is worth around $5.1 billion annually with a projected forecast growth of 4% by 2025. Some 93% of the products within the US infant nutrition market are powder formulations.

What’s more, Bubs’ product will be the only Australian goat milk formula to be sold in the nation.

On the day of the announcement, the Bubs share price closed a mammoth 28% higher than its previous day’s trade.

Bubs’ products will be available for purchase in the US through Walmart Inc‘s online store and Amazon.com Inc.

As part of the shift, Bubs will establish a US subsidiary, Aussie Bubs, to be based in northern California. Its products will be sold on Walmart’s online store from September.

Bubs Australia share price snapshot

Despite the month’s growth, the Bubs share price is still in the red on the ASX. It has fallen 16.6% since the start of 2021 and 50.5% since this time last year.

The company has a market capitalisation of around $306 million, with approximately 612 million shares outstanding.

The post Why the Bubs (ASX:BUB) share price has gained 28% in a month appeared first on The Motley Fool Australia.

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• The Bubs (ASX:BUB) share price has shot up 7% today
• Why Afterpay, Betmakers, Bubs, & Starpharma shares are racing higher

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. 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 has recommended Amazon and BUBS AUST 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 Argo Investments Limited (ASX: ARG) share price has officially cemented itself at a new all-time high today. At the time of writing, the listed investment company’s (LIC) shares are up 0.22% to $9.14.

Earlier in the session, the Argo share price cracked fresh highs at $9.20 a share. However, with no new announcements from the company, it might be worth taking a look at recent updates.

What’s pushing the Argo Investments share price higher?

For some background, Argo Investments is one of Australia’s oldest LICs – established all the way back in 1946. The company focuses on investing in a diversified mix of Australian equities using an actively managed approach.

Although there are no announcements from Argo today, the company did reveal a net tangible asset (NTA) and investment update yesterday. According to the release, the company’s NTA at the end of June 2021 was $9.01, an increase of ~2.4% on the prior month.

Furthermore, the company’s top 5 holdings at the end of the month were Macquarie Group Ltd (ASX: MQG), BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL), Wesfarmers Ltd (ASX: WES), and Commonwealth Bank of Australia (ASX: CBA).

Since then, Wesfarmers has gone on to make a bid for Australian Pharmaceutical Industries Ltd (ASX: API). In another boost for the Argo share price, shares in BHP have appreciated 5% following the LIC’s last report.

Some of Argo’s other holdings have been at the centre of the recent merger and acquisition frenzy. One example of this is the firm’s 1.4% exposure to Sydney Airport Holdings Pty Ltd (ASX: SYD), which recently jumped 33% higher following a takeover bid.

Is Argo a possible Milton doppelgänger?

Investors of Argo shares may also be speculating whether the LIC is Washington H. Soul Pattinson and Co. Ltd’s (ASX: SOL) next target.

The $8 billion Australian investment house that is Soul Patts proposed a merger with the $4.2 billion Milton Corporation Limited (ASX: MLT) last month.

Between Argo Investments and Milton, there are similarities. Both were founded within 10 years of each other, both share similar investments and investment approaches, and both are smaller than Soul Patts.

For the time being, the Argo Investments share price is likely safe from Soul Patts while it attempts to consume Milton.

The post The Argo Investments (ASX:ARG) share price hits a new all-time high appeared first on The Motley Fool Australia.

More reading

• Why are Soul Patts (ASX:SOL) shares surging 9% today?
• ASX 200 jumps, Soul Patts rises, Openpay soars
• Soul Patts (ASX:SOL) share price climbs higher on Milton merger
• What will Soul Patts’ (ASX:SOL) portfolio look like post-Milton merger?
• Why Bank of Queensland, IGO, Milton, & Openpay are surging higher

Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited, Washington H. Soul Pattinson and Company Limited, and Wesfarmers 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 out of form on Tuesday. In afternoon trade, the banking giant’s shares are down 0.5% to $25.41.

This decline means the Westpac share price is now down 6.3% since peaking at a high of $27.12 in June. As a result, Westpac’s shares are underperforming the benchmark S&P/ASX 200 Index (ASX: XJO) during the same period.

In addition to this, the bank’s shares are trading flat over the last three months, compared to a 5% gain by the ASX 200.

Why is the Westpac share price underperforming?

The Westpac share price has come under a spot of pressure over the last few weeks following a series of developments.

One of those was news that the banking giant will not be offloading its Westpac New Zealand business.

At the time, analysts at Citi suggested that this decision was likely due to the complexities of divesting from a liquidity and capital perspective. Essentially, it just became too hard for Westpac to demerge the business efficiently.

Over at Ord Minnett, its analysts appeared disappointed with the news. The broker notes that the business has been losing market share and has poor net promoter scores (NPS). As such, it feels the business will require significant investment.

What else?

Also weighing on the Westpac share price recently has been news that the bank has uncovered significant potential fraud. This relates to a portfolio of equipment leases with Westpac customers arranged by Forum Finance, which were referred to Westpac’s Institutional Bank.

The bank notes that it has a potential exposure of around $200 million after tax. Though, the extent of any loss will be dependent on the outcome of its investigations and recovery actions underway.

Is this a buying opportunity?

One leading broker that may believe the recent weakness in the Westpac share price is a buying opportunity is Morgans.

According to a note from last week, the broker has retained its add rating and $29.50 price target on the bank’s shares. Based on the latest Westpac share price, this implies potential upside of 9% over the next 12 months.

Morgans believes Westpac shares offer compelling value for investors and sees significant capital management potential.

The post The Westpac (ASX:WBC) share price has trailed the ASX 200 over the last 3 months appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 shares helped deliver record profits and a 4.5% dividend?
• Why this leading fundie is bullish on the Westpac (ASX:WBC) share price
• Why the Commonwealth Bank (ASX:CBA) share price is beating the ASX 200
• ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat
• Is the Westpac (ASX:WBC) share price in the buy zone?

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 Sky News First Edition on Tuesday morning to discuss the cost of the current COVID lockdown, the potential government support, and the impact on jobs and businesses.

The post The cost of COVID, and government support on the way. Scott Phillips on Sky News First Edition appeared first on The Motley Fool Australia.

More reading

• The Argo Investments (ASX:ARG) share price hits a new all-time high
• The Westpac (ASX:WBC) share price has trailed the ASX 200 over the last 3 months
• Expert reveals 2 ASX shares to buy during lockdown
• Why the Okapi Resources (ASX:OKR) share price is up 36% this week
• Why the NAB (ASX: NAB) share price has jumped today

Motley Fool contributor Scott Phillips 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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All eyes are on Australia’s largest city to see how it will defeat the dangerous COVID-19 delta variant.

The sight of 5.3 million people in prolonged lockdown has taken investors back to last year, when they sought to find ASX shares winning from people staying at home.

However, Tribeca Investment Partners portfolio manager Jun Bei Liu said that the current Sydney lockdown is slightly different to the 2020 scares.

“We didn’t have vaccines [last year],” she told Switzer TV Investing.

“As soon as we come out of this, the recovery will be enormous… I really believe that, investors, you just need to be a little bit more patient as we pass this.”

Having noted this, Liu reckoned a couple of ASX shares still look ripe for the picking right now while Sydneysiders are trapped at home.

The ASX share that’s doubled in 5 years and pays a 5.7% dividend

Despite it having a network of physical stores, JB Hi-Fi Limited (ASX: JBH) was a pandemic beneficiary.

Last year, Australians bought up appliances and homewares to make their houses and home offices more comfortable during the first wave of the virus.

But JB Hi-Fi shares have slumped more than 5.5% this year.

“JB Hi-Fi has been sold off as the reopening of the economy got people excited… at the same time the consumer stimulus [wound] back,” said Liu.

However, she thinks the appliances seller is in a prime position now.

“JB Hi-Fi’s in a good situation at the moment with Sydney lockdown, potentially for a prolonged period of time. That certainly benefits a lot of their short-term earnings,” Liu said.

“At the same time, we’re expecting the government to step up and give more stimulus.”

Even without the Sydney restrictions, Australians still can’t travel freely. Therefore there’s still plenty of money to flow into the consumer sector, according to Liu.

“JB Hi-Fi is the one that actually looks pretty good heading into the reporting season [in August],” she said.

“Most people are expecting earnings to fall next year significantly. I think people are way too bearish with that kind of forecast… On a 2-year view, this is a structural leader.”

The JB Hi-Fi share price has doubled in the past 5 years, going from $23.33 to more than $47 this week. Incredibly, the stock also gives out a 5.73% dividend yield.

“And it’s not expensive — that is the key. In today’s market, if you want to buy quality businesses you have to pay up big multiples for them.”

JB Hi-Fi stocks are currently trading on a price-to-earnings (P/E) ratio of around 12.

What’s your favourite activity during lockdown?

Liu also liked the look of media conglomerate Nine Entertainment Co Holdings Ltd (ASX: NEC).

“It offers exposure to Stan, which is a very fast-growing streaming service,” she said.

“At the same time, it gives you exposure to Domain Holdings Australia Ltd (ASX: DHG), which is going through a really good purple patch at the moment where [real estate] listings are going very strong.”

Nine shares are up 13.6% for the year, trading for $2.64 on Tuesday afternoon. But they were above $3 in late June, so Liu feels like this is a lockdown buying opportunity.

“What do you think everyone’s doing? Sitting at home watching TV!” she said.

“The feedback we have from advertising, especially the TV market, has been incredibly strong. Just because people really don’t have many places to go to. And all the corporates are spending that money to build their brand.”

The post Expert reveals 2 ASX shares to buy during lockdown appeared first on The Motley Fool Australia.

More reading

• Why the JB Hi-Fi (ASX:JBH) share price is down 7% this month
• Why the Nine Entertainment (ASX:NEC) share price is climbing on Monday
• ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat
• These were the worst performing ASX 200 shares last week
• 2 ASX 200 shares that keep growing their dividends

Motley Fool contributor Tony Yoo 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 Okapi Resources Ltd (ASX: OKR) share price has soared since exiting a trading halt entered at its request last Thursday.

Okapi leapt 48% higher during yesterday’s trade. Today, there looks to be some profit taking underway with Okapi Resources’ share price down 6.25% in early afternoon trade, leaving it up 36% for the week.

We take a look at the ASX resource explorer’s uranium announcement that’s stirring investor interest.

What uranium announcement did Okapi make?

The Okapi Resources share price is up 36% this week after the company reported it had acquired a portfolio of high-grade uranium projects in the United States.

The binding agreement will see it acquire 100% of the shares and options in Tallahassee Resources. The company said the newly acquired assets include “a strategic position” in the Tallahassee Creek Uranium District in the US state of Colorado, well-known for its historic uranium production.

According to a 2004 JORC Mineral Resource estimate, the Tallahassee Uranium Project is estimated to contain 26 million pounds of U3-O8 at a grade of 540 ppm U3-O8. Okapi notes there is significant exploration upside at the project.

Okapi Resources’ share price also likely got a lift from its announcement that Tallahassee holds an option to acquire 100% of the high-grade Rattler Uranium Project in the US state of Utah. It said Rattler is just 85 kilometres from the only operating conventional uranium mill in the US, the White Mesa Uranium Mill.

The acquisition was backed by former executives of Black Range Minerals which had previously owned the Tallahassee Uranium Project.

Commenting on the acquisition, Okapi’s executive director David Nour said:

This is a transformational opportunity for Okapi to become one of the most prominent uranium developers in the world. Through this acquisition, Okapi is perfectly placed to capitalise on the strengthening uranium market.

Nour welcomed former Black Range exploration manager Ben Vallerine who joins Okapi’s Board as non-executive technical director.

Okapi noted it remains well-funded with roughly $6.3 million in cash and cash equivalents upon completion of placement. It expects to commence “high-impact work programs” in the second half of 2021.

Okapi share price snapshot

Factoring in the big lift it received this week, the Okapi Resources share price is now up 62% over the past 12 months. By comparison the All Ordinaries Index (ASX: XAO) has gained 25% over that same time.

Year-to-date, the Okapi Resources share price is up 53%.

The post Why the Okapi Resources (ASX:OKR) share price is up 36% this week appeared first on The Motley Fool Australia.

More reading

• Why the NAB (ASX: NAB) share price has jumped today
• Why the Sydney Airport (ASX:SYD) share price is flying higher today
• ASX lithium shares are surging on Tuesday. Here’s why
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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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