Tag: Motley Fool

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.

In some ways, investing is like participating in a race. You don’t necessarily need to be the fastest right out of the gate to win. Rather, you just need to keep a steady pace over the long haul to come out ahead.

The S&P 500 is one of the best long-term investments out there, and famed investor Warren Buffet has long touted the S&P 500 as an ideal option.

In fact, during the 2020 Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B) shareholder’s meeting, Buffett claimed that “for most people, the best thing to do is to own the S&P 500 index fund.” Here’s why the S&P 500 is so powerful, and how it could help you make a lot of money in the stock market.

A more resilient investment

The S&P 500 is comprised of 500 of the largest and most stable companies in the United States. When you invest in an S&P 500 index fund, you’re investing in all the stocks that make up the S&P 500 in order to mirror the index’s performance.

Because the S&P 500 contains some of the strongest companies in the country, it’s more likely to see positive long-term growth. In addition, it’s more resilient in the face of market crashes.

This isn’t to say that the S&P 500 is immune to market downturns. However, it’s more likely to recover from crashes than some other types of investments.

Since the S&P 500’s inception in 1957, it has faced countless corrections, downturns, and crashes. Given enough time, however, it’s been able to recover from every single one. And since its inception, it has earned an average rate of return of around 10% per year.

^SPX data by YCharts

This doesn’t necessarily mean the S&P 500 will continue earning 10% returns year after year. There will be years when you experience losses, while other years you’ll earn much higher-than-average returns. Over time, those good years and bad years should average out to around 10% per year.

The market will inevitably crash sooner or later. But by investing in S&P 500 index funds, there’s a very good chance your investments will recover.

How much can you earn with the S&P 500?

Although S&P 500 index funds are relatively safe investments, you can still potentially make a lot of money.

The key to getting rich with the S&P 500 is to give your money as much time as possible to grow. Ideally, you’ll have started saving early in life and can continue investing consistently for several decades. But if you’re off to a late start, it’s still important to start investing now instead of putting it off.

Let’s say you’re investing $300 per month in S&P 500 index funds, and you’re earning a 10% average annual rate of return. Here’s approximately how much you’d accumulate over time, depending on how many years you have left to save:

Number of Years to Save	Total Savings
5	$22,000
10	$57,000
20	$206,000
30	$592,000
40	$1,593,000

Source: Author’s calculations

Given enough time, it’s possible to become a millionaire by investing in S&P 500 index funds. But even if you don’t have 40 years left to save, you can still make a substantial amount of money.

Also, one of the best features of this type of investment is that it’s hands-off. In other words, your S&P 500 index funds will perform best when you don’t touch them for as long as possible. So all you need to do is invest consistently and then sit back and let your investments do the rest of the work for you.

Warren Buffett is a proponent of S&P 500 index funds, and it’s easy to see why. There are several advantages to choosing this type of investment, and by investing consistently, you can potentially earn more than you think.

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

More reading

• How’s an LIC different from an active ETF?
• Why earnings growth is a rubbish way to judge a stock: report
• Here are the shares that Warren Buffett has been buying (and selling) lately
• ASX tech shares are in a world of pain. There might be more to come…
• Here’s How Warren Buffett Explained Berkshire Hathaway’s Bank Selloff

The post Why Warren Buffett picked the S&P 500 to win the investing race appeared first on The Motley Fool Australia.

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

from The Motley Fool Australia https://ift.tt/3wEN32c

The Propel Funeral Partners Ltd (ASX: PFP) share price is moving higher today, up 5% in late morning trade.

Propel Funeral is the second-largest private provider of death care services in Australia and New Zealand. Below we take a look at the company’s internalisation proposal, released this morning.

What did Propel Funeral Partners propose?

Propel Funeral’s share price is gaining today after the company reported that it has entered into an Implementation Agreement with Propel Investments Pty Ltd, the current Manager.

The agreement follows on negotiations initiated and led by the company’s independent directors and is intended to internalise key senior management functions.

Propel Funeral has been externally managed by the Manager since September 2017 under a Management Agreement with an initial term of 10 years from the company’s November 2017 initial public offering (IPO). That agreement automatically extends for 5-year periods, unless the Manager agrees to end it earlier, or shareholders vote to terminate it after the end of the initial term.

Currently, the Manager entirely oversees Propel Funeral’s affairs in return for a range of fees.

Propel Funeral reported that its proposed internalisation will end the Management Agreement in return for a $15 million fee paid to the Manager. $7.5 million of that will come from a capital raising via new fully paid ordinary shares at $3.25 per share. That’s below the current $3.59 per share. The remaining $7.5 million will come from available funds and existing debt facilities.

Addressing the internalisation proposal, Propel Funeral’s chairman, Brian Scullin said:

Internalisation of Propel’s senior management functions brings the company into line with the market standard management structure for ASX listed operating companies and offers greater potential to broaden the shareholder base, among other expected benefits…

Each director has confirmed they will continue as directors of the internalised company. The executives, who co-founded Propel, will become employees by entering into executive services agreements… Importantly, with Propel’s operations increasing from 80 locations at IPO to 138 locations currently, the company will continue to undertake its acquisition led growth strategy following the internalisation of key senior management functions.

The independent directors stated that they believe the internalisation proposal is in the best interests of Propel Funeral and its shareholders.

The company plans to issue a Notice of Meeting seeking shareholder approval, with a General Meeting slated for July.

Propel Funeral share price snapshot

Over the past 12 months, Propel Funeral’s shares have gained 21%. By comparison, the All Ordinaries Index (ASX: XAO) is up 25% in that same time.

Year-to-date, the Propel Funeral share price is up 26%.

More reading

• Got money to invest for dividends? Here are 2 ASX shares that could be buys

The post Why the Propel Funeral (ASX:PFP) share price is leaping higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3vBvPmd

The Accent Group Ltd (ASX: AX1) share price is moving upwards during Monday’s session. At the time of writing, shares in the retailer are trading at $2.74, up by 0.74%. This is down from an intraday high of $2.77 achieved in morning trade. At the same time, the S&P/ASX 200 Index (ASX: XJO) is currently sitting 0.1% lower.

The company comes into focus after it completed its purchase of the Glue retail business.

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

Why the Accent share price is moving

Investors are driving up the Accent share price after the company advised it has completed its “acquisition of the Glue Store retail business and the wholesale and distribution brands business of Next Athleisure Pty Ltd”.

News of the acquisition was first announced in late April. The news sent Accent shares rocketing 11.2% on the day of the announcement.

Other brands Accent has acquired today include Nude Lucy, Lulu & Rose, and Article One. As well, Accent will receive distribution rights for international brands such as le coq sportif, Kappa, K-Way, and Sebago.

The company will rename Next Athleisure to ‘Accent Lifestyle’, which will become a new division within the Accent business. Accent says it hopes to grow the business “in the underserviced and fragmented youth apparel market in Australia and New Zealand”.

Investors are seemingly buoyed by today’s announcement judging by the performance of the Accent share price.

Management commentary

Accent Group CEO Daniel Agostinelli commented:

The strong strategic alignment between the Accent and Next Athleisure businesses provides us with a significant opportunity to accelerate our growing apparel business.

Our strategy and plans are already well progressed to increase Glue Store’s store network over time, accelerate its digital and virtual offerings, grow its owned vertical brands and significantly increase the range of footwear in its stores.

Accent share price snapshot

During the past 12 months, the Accent share price has increased by around 102%.

Despite plunging by more than 70% at the height of the COVID-19 market sell-off, the company’s value has now surpassed its pre-pandemic levels. In April this year, Accent shares hit an all-time high of $3.08 each – the tail end of the Glue purchase announcement.

Accent Group has a market capitalisation of $1.48 billion.

More reading

• 2 ASX dividend shares that could be buys in June 2021
• 2 top ASX dividend shares with 4%+ yields
• 2 attractive ASX dividend shares that could be a buy
• Retail sales rose 1.1% in April, but some ASX retail shares are selling off in May
• Which ASX 200 shares withstood today’s selloff?

The post Accent (ASX:AX1) share price rises after sticking with Glue appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3cnHKwL

At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and dropped lower. The benchmark index is currently down 0.15% to 7,168.4 points.

Here’s what’s been happening on the market today:

A2 Milk class action news

The A2 Milk Company Ltd (ASX: A2M) share price is trading lower today after Slater & Gordon Limited (ASX: SGH) advised that it was looking into a potential class action. The law firm is alleging that the infant formula company may have engaged in misleading or deceptive conduct in breach of the Corporations Act. It may also have possibly breached continuous disclosure rules. This follows four downgrades to its guidance so far in FY 2021.

Nuix share price crashes again

The Nuix Ltd (ASX: NXL) share price has crashed lower again on Monday. This morning the investigative analytics company downgraded its guidance just a little over a month after issuing it. Nuix is now expecting pro forma revenue of $173 million to $182 million in FY 2021. This compares to its 21 April guidance of $180 million to $185 million. Management advised that this is due largely to the expected timing of closure of some upsell opportunities and new potential customers.  

Link shares tumble on PEXA IPO news

The Link Administration Holdings Ltd (ASX: LNK) share price is sinking lower today after confirming that its PEXA business will be undertaking an initial public offering (IPO). The underwritten price of the IPO implies an enterprise value for PEXA of $3.3 billion. Link advised that it expects to receive a minimum of $50 million in cash as a result of the IPO process, plus any proceeds received through a scale back.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Domino’s Pizza Enterprises Ltd (ASX: DMP) share price with a 4% gain on no news. The worst performer has been the Nuix share price with a disappointing 17% decline following its guidance downgrade.

More reading

• These 3 beaten down ASX tech shares are trading near historic lows
• Nuix (ASX:NXL) share price crashes 12% after downgrading guidance again
• a2 Milk (ASX:A2M) share price hit by class action news
• Link (ASX:LNK) share price on watch following PEXA IPO update
• ASX 200 Weekly Wrap: ASX record highs tumble like… Costa shares

The post ASX 200 down 0.15%: A2 Milk class action, Nuix crashes again appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3fCxhj0

There are some ASX shares that have seen elevated levels of growth during this period of time where COVID-19 is affecting many areas of the economy and life.

The two businesses below are seeing very strong levels of growth, but they have plans to keep things going beyond COVID-19:

Ansell Limited (ASX: ANN)

Ansell is one of the largest global suppliers of safety gloves and other protective gear for industrial and healthcare settings.

Around a month ago, the business gave a trading update that said it’s continuing to support elevated levels of demand for personal protective equipment (PPE) around the world. Its important capacity expansions remain on track to meet increased demand.

In-fact, the demand has been so strong that the financial performance since January 2021 has been stronger than expected.

COVID-19 has caused global disruption to manufacturing, but Ansell said it has seen limited downtime or employee disruption.

There has been raw material cost increases for the ASX share, but it has managed to pass on price increases to customers. It has also managed to keep supplying customers despite tight raw material supply and an increase in transportation transit times.  

Ansell said that the COVID-affected parts of its business have bounced back quicker than expected.

In the first half of FY21, Ansell said it started five new production lines and expect another eight production lines to go live during the second half.

By FY22 to FY23, it expects to have more than doubled its in-house capacity of single-use gloves and suits and will also have expanded capacity in surgical, multi-purpose, chemical and electrical gloves to be able to meet the stronger demand from customers.

Ansell expects that COVID-19 will impact the world for some time and once the pandemic is under control, elevated demand for its products is likely to persist because of enhanced safety practices at plants and hospitals, better protection awareness in emerging markets, more research and testing activities worldwide.

Nick Scali Limited (ASX: NCK)

Nick Scali is a leading furniture ASX share in Australia. It has a national store network of stores, it imports its quality pieces from overseas.

It’s currently rated as a buy by Citi with a price target of $12.05. The broker pointed out that strong order book and seemingly improving freight situation.

The business has been growing increasingly profitable over the last several years. In the FY21 half-year result, its gross profit margin increased by another 180 basis points to 64% due to reduced discounting.

Operating leverage helped Nick Scali double profit in the first six months of FY21. This is translating into much larger cashflow and dividends for shareholders.

In the third quarter of FY21, it saw written sales growth of 50%. Sales growth to the end of April 2021 was approximately 44%.

Nick Scali said that the order bank at the end of April continues to remain at elevated levels, providing a foundation for revenue growth into FY22.

The ASX share has further growth plans by expanding its store network, launching adjacent product categories, growing its online offering, potential acquisitions and increasing the property portfolio. It has opened three new stores in FY21. Nick Scali currently has 61 stores across Australia and New Zealand, it’s targeting at least 86.

More reading

• Top brokers name 3 ASX shares to buy next week
• 2 ASX shares with BIG dividend yields
• 2 ASX dividend shares to buy with yields above 5%
• 2 ASX 200 COVID-19 shares to buy
• Top brokers name 3 ASX dividend shares to buy today

The post 2 ASX coronavirus shares that could be buys appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3i58DsY

Former market darling Altium Limited (ASX: ALU) has had a rough time of it lately.

The software firm’s shares have come off about 30% from their 52-week high to trade at $28.67 at the time of writing. The Altium share price peaked at $41.82 in February 2020, just before the COVID-19 market crash.

So is this a buying opportunity, or has the business fundamentally changed in recent times?

Shaw and Partners senior analyst Jules Cooper admitted the coronavirus downturn “hit the business hard”, but maintains its potential hasn’t altered.

“I don’t think they were having broader issues [when the pandemic hit],” he told the Direct From The Desk podcast.

“The business entered COVID with quite a lot of momentum — they were releasing new products and all was going swimmingly well.”

We’ve just turned bullish on Altium

According to Shaw and Partners portfolio manager James Gerrish, his team had only recently “turned bullish” on Altium shares, now well down from their highs.

Shaw and Partners now rates the Altium share price as a ‘buy’ with a price target of $34.

“We’ve always loved the company, the product and the management team — [but] it’s just always been priced to perfection.” said Cooper.

“Now I feel we have an opportunity to buy a very high-quality business run by a high-quality team in a big global market. And we don’t feel like we have to wince when we put the recommendation on our research.”

Cooper’s team uses cash EBITDA to work out the price-to-earnings (P/E) ratio for a company like Altium.

On that metric, it is currently selling for a multiple of around 33 times. Achieving the $34 price target would take it up to 43, which is still well down on its all-time peak.

“If you look back to December 2020… it was trading almost 50 times cash EBITDA,” said Cooper.

Arguably, purchasing Altium shares now could allow for the earnings to recover in the coming years as discretionary corporate spend picks up among potential clients.

Why COVID was so tough on Altium

Altium provides software that designs printed circuit boards, which are one of the building blocks for computers.

Cooper explained that when COVID-19 struck last year, Altium was in the midst of transitioning from an upfront licensing model to recurring subscriptions.

Such a change stings the bottom line for software vendors in the short term, but is more lucrative in the long run.

“It’s unfortunate that they made this transition at a time when it was difficult for the business,” said Cooper.

“But I find it quite amusing that people will not give the company and the management team the premium they deserve, that they’ve built up over a very long period.”

Cooper predicts Altium will accelerate its shift to recurring revenue by funneling the clientele returning to the company post-COVID onto that model.

Altium has previously earmarked a revenue target of $500 million by the 2025 financial year. It last reported $268.4 million for the 2020 financial year.

More reading

• These 3 beaten down ASX tech shares are trading near historic lows
• How are the ASX WAAAX shares performing in 2021?
• 2 excellent ASX growth shares named as buys
• 2 ASX tech shares rated as buys by brokers
• These were the best performers on the ASX 200 last week

The post Are Altium (ASX:ALU) shares a buy right now? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3yRt5TS

The Odyssey Gold Ltd (ASX: ODY) share price is storming higher during mid-morning trade following an update on its capital raise efforts.

At the time of writing, the gold miner’s shares are up 7.4% to 14.5 cents.

Odyssey Gold completes placement, initiates SPP

According to its release, Odyssey Gold advised it has successfully secured a commitment to raise $10 million (before costs) through a placement. The offer received strong support from both domestic and international institutional and sophisticated investors.

The placement will see 79.8 million new ordinary shares issued at a price of 12.5 cents apiece.

In addition, Odyssey Gold will launch a Share Purchase Plan (SPP) for eligible shareholders, under the same terms of the placement. The company is hoping to raise a further $5 million by the issuance of another 40 million ordinary shares. The SPP offer closes on 24 June 2021, with issue and quotation of the shares on 1 July 2021.

Odyssey Gold will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows up to an additional 15% of its total shares to be issued without shareholder approval.

The proceeds of the placement and SPP will be used to accelerate the company’s Tuckanarra and Stakewell Gold Projects. This includes expanding its current exploration drilling program, whilst undertaking resource development drilling, and technical and metallurgical studies.

Odyssey Gold executive director, Matt Syme commented:

We are pleased with the strong support received for this Placement from existing and new investors. It reflects the exciting exploration potential of our two outstanding gold projects in the Murchison Goldfields.

Funds raised from the Placement will allow Odyssey to expedite exploration of our recent gold discoveries.

How has the Odyssey Gold share price performed?

Since listing on the ASX board in January, Odyssey Gold shares have jumped by more than 220%. The company’s share price reached an all-time high of 22.5 cents earlier this month before dropping lower from profit-taking.

Odyssey Gold has a market capitalisation of roughly $63 million, with 452 million shares on its registry.

More reading

• What’s up with the Odyssey Gold (ASX:ODY) share price today?
• Odyssey Gold (ASX:ODY) share price freefalls 20% despite update
• Why the Odyssey Gold (ASX:ODY) share price is rocketing 118% higher today

The post Odyssey Gold (ASX:ODY) share price jumps 7% on capital raising efforts appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3i2VW1J

Shares in Spark Infrastructure Group (ASX: SKI) have slipped today with news its subsidiary has given the go-ahead for a key energy project. At the time of writing, the Spark share price is trading at $2.17, down 0.67%.

Project EnergyConnect will be built by TransGrid following the company’s final investment decision. The project has all of the required regulatory approvals.

Spark Infrastructure, an energy-focused investment company, holds a 15% stake in TransGrid.

Let’s take a closer look at the news that could drive the Spark Infrastructure share price today.

Project EnergyConnect

Project EnergyConnect’s 900 kilometre electricity interconnector will connect power grids in Robertstown, South Australia, and Wagga Wagga, New South Wales. It will also divert to Buronga in New South Wales and Red Cliffs in Victoria.

TransGrid will spend $1.834 billion to build the section of EnergyConnect between Wagga Wagga and the South Australian border.  

The project is in partnership with ElectraNet, which will build the South Australian and Victorian sections.

According to TransGrid, Project EnergyConnect will save New South Wales residents $180 million each year – around $60 per household – by driving competition in the wholesale electricity market. The project will also inject $4 billion of economic activity into the state.

EnergyConnect could decrease Australia’s carbon emissions by one million tonnes annually.  

To fund EnergyConnect, TransGrid will receive $295 million in capital from the Australian Government’s Clean Energy Finance Corporation (CEFC) in the form of an innovative subordinated note instrument. The funding is the CEFC’s largest single investment yet.

Spark Infrastructure says its funding of Project EnergyConnect will come from the company’s distribution reinvestment plan.

Construction is expected to begin late this year and finish in 2023.

Commentary from management

Spark Infrastructure’s managing director Rick Francis commented on Project EnergyConnect, saying:

[EnergyConnect’s] construction is a critical step towards unlocking the transfer capacity we need to support more renewables coming into our energy supply…

We are delighted with the support received from the Australian Government’s CEFC to get this important project across the line…

The approval for EnergyConnect is not only a significant step in delivering on Spark’s ‘growth plus yield’ value proposition to our investors, but is also a critical project to deliver lower electricity prices and reduce Australia’s carbon footprint.

Spark Infrastructure share price snapshot

The Spark Infrastructure share price is having a sound year on the ASX.

The Spark Infrastructure share price is currently 1.87% higher than it was at the beginning of 2021. It has also gained 4.31% since this time last year.

Spark Infrastructure has a market capitalisation of around $3.8 billion, with 1.75 billion shares outstanding.

More reading

• Acorns investing app going public in $2.2 billion SPAC merger
• Up 480% in 1 year, here’s why the Vital Metals (ASX:VML) share price is charging higher again
• Jumbo (ASX:JIN) share price tumbles on broker downgrade
• The HomeCo (ASX:HDN) share price moving higher on valuation update
• Why the GR Engineering (ASX:GNG) share price is pushing higher today

The post Spark (ASX:SKI) share price dips despite energy project go-ahead appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3yQOJaL

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.

Is the investing world ready for yet another next-generation fintech going public? Acorns, an investing app that offers a suite of investment, banking, and financial education services for low monthly fees, revealed it’s going public by combining with an existing company, Pioneer Merger Corp. (NASDAQ: PACX). The company said this places the equity value of its business at roughly $2.2 billion.

Pioneer Merger is a special purpose acquisition company (SPAC), which is an entity created and listed with the sole purpose of bringing an existing business to the stock market quickly.

After Acorns fuses together with Pioneer Merger, the new entity will operate as Acorns Holdings. Its stock should trade on the Nasdaq under the ticker symbol OAKS. Current Acorns CEO Noah Kerner will also be at the helm of the new company. 

Acorns said that Kerner and Pioneer Merger’s sponsor aim to pass along 10% of their respective positions in the new company to eligible customers through a share-ownership program. It didn’t provide details of this initiative.

In its press release trumpeting the move, Acorns quoted Kerner as saying that, “Going public will help elevate our story, introduce many more people to the power of compounding and financial wellness, and bring financial literacy to the mainstream.”

Acorns said that both its and Pioneer Merger’s board of directors have unanimously approved their business combination. It remains subject to approval by the latter company’s shareholders. Acorns said the deal should close in the second half of this year.

While the publicly traded, cutting-edge fintech space is getting quite crowded, Acorns has a novel business profile and operates a popular app. This should attract plenty of attention from investors looking to profit on the future of the financial services industry.

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

More reading

• Up 480% in 1 year, here’s why the Vital Metals (ASX:VML) share price is charging higher again
• Jumbo (ASX:JIN) share price tumbles on broker downgrade
• The HomeCo (ASX:HDN) share price moving higher on valuation update
• Why the GR Engineering (ASX:GNG) share price is pushing higher today
• These are the 10 most shorted shares on the ASX

The post Acorns investing app going public in $2.2 billion SPAC merger appeared first on The Motley Fool Australia.

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

from The Motley Fool Australia https://ift.tt/3fTdOti

The Vital Metals Limited (ASX: VML) share price is gaining in late morning trade, up 4%.

Below we look at the latest announcement from the ASX resource share and rare earths explorer.

What did the company report?

Vital Metals’ share price is moving higher after the company reported it received formal acceptance from its offtake partner, REEtec AS, for its rare earth carbonate sample.

The 12-kilogram rare earth carbonate sample was produced at Vital Metal’s Nechalacho project in Canada in March this year.

Commenting on the development, Vital Metals’ Managing Director Geoff Atkins said:

Customer acceptance from REEtec is a key milestone for the development of the Nechalacho rare earth project and the construction of our Extraction Plant in Saskatoon. This achievement demonstrates that we have our processes at Nechalacho working correctly and we can proceed in line with our plans.

With the satisfaction of this milestone, the procurement of equipment for our Rare Earth Extraction Plant in Saskatoon will proceed.

Vital Metals executed a definitive Offtake Agreement with REEtec on 2 February. That stipulated that Vital Metals will provide REEtec with 1,000 tonnes of rare earth oxides (REO) per year over five years. Both REEtec and Vital Metals have the option to increase the offtake volume by as much as 5,000 tonnes REO annually over 10 years.

The company said it will commence production via ore sorting in June. It is on track to become only the second rare earth producer in North America and the first in Canada.

Vital Metals share price snap shot

Vital Metals’ shareholders have enjoyed a very strong year. Demand for rare earths, critical to most modern tech devices, sourced outside of China is growing rapidly. This has helped drive its shares up 480% over the past 12 months. Over that same time, the All Ordinaries Index (ASX: XAO) gained 25%.

Year-to-date, the Vital Metals share price has continued to outperform, up 93% so far in 2021.

More reading

• Acorns investing app going public in $2.2 billion SPAC merger
• Jumbo (ASX:JIN) share price tumbles on broker downgrade
• The HomeCo (ASX:HDN) share price moving higher on valuation update
• Why the GR Engineering (ASX:GNG) share price is pushing higher today
• These are the 10 most shorted shares on the ASX

The post Up 480% in 1 year, here’s why the Vital Metals (ASX:VML) share price is charging higher again appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/34x7pyy