Tag: Motley Fool

The MLG Oz Limited (ASX: MLG) share price has made a dramatic ASX debut this morning. MLG shares had their initial public offering (IPO) this morning with a listing price of $1 per share. But in early trading, this brand new ASX share has rocketed 36% to $1.36 at the time of writing after reaching levels as high as $1.40 earlier in the day.

Not a bad way to make an entrance on the ASX as the new kid on the block!

So what is this new ASX share?

Even though it’s only gracing the ASX for the first time today, MLG Oz has been around for almost two decades. It was founded by former truck driver Murray Leahy back in 2002, and today is one of the largest contractors of ‘supply-chain solutions’ for mining companies, particularly in the Pilbara region of Western Australia.

These ‘solutions’ range from quarry products, export logistics and bulk transport and haulage services to crushing and screening of ore. According to a report in the Australian Financial Review (AFR) today, MLG also supplies bulk materials like sand, aggregate, cement and lime from a series of quarries the company owns. It also has a fleet of 925 heavy vehicles.

MLG Oz hits the ASX brick road

MLG works with other ASX businesses like BHP Group Ltd (ASX: BHP), Northern Star Resources Ltd (ASX: NST) and Fortescue Metals Group Limited (ASX: FMG).

According to the AFR, Mr Leahy will retain approximately half of the shares on issue for MLG and will stay at the helm of the business as it transitions into a public company. The report also tells us that MLG has forecast revenues of $241 million for 2020-21,  as well as pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) of $41 million.

Around 82% of the company’s revenues come from the gold mining sector, with another 14% from iron ore industries and the rest from various other base metals.

MLG has also received interest from some high-profile investors. Chris Ellison, of Mineral Resources Limited (ASX: MIN), has reportedly secured a 0.69% stake in the company. Bill Beament of Northern Star also has a position.

At a listing price of $1 per share, MLG Oz had an approximate market capitalisation of $146 million. Going off of the share price the company has climbed to upon debut, however, I estimate its market cap is now sitting at around $196 million.

More reading

• Why is the Cyclopharm (ASX:CYC) share price down today?
• The MyDeal (ASX:MYD) share price is flying today. Here’s why
• Impedimed (ASX:IPD) share price bounces on ‘significant’ hospital finding
• Why De Grey, Infomedia, Northern Star, & SEEK shares are storming higher
• Telstra (ASX:TLS) share price edges higher despite record $1.5 million fine

Motley Fool contributor Sebastian Bowen 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 MyDeal.com.au Ltd (ASX: MYD) share price is soaring after the company announced the launch of its native mobile apps for iOS and Android.

At the time of writing, the MyDeal share price is trading at 71 cents, up 4.4%. The online retail marketplace has a lot of work to do after sliding almost 60% since its ASX debut on 22 October. 

MyDeal ticks off another growth initiative 

Back in the first half of FY21, the launch of native apps was a key growth initiative to improve the mobile shopping experience, reduce marketing and increase customer retention. Mobile apps represent a significant growth opportunity with approximately 75% of website visits coming from mobile or tablet devices, according to Google Analytics. 

The MyDeal native apps will enable its current 833,000 active customers a seamlessly shop from its range of 6 million home and lifestyle products.

The app provides users with additional mobile-specific features and offerings including app-specific discount coupons, notifications for offers, shop-by-room navigation, product cross-sharing to social media apps and seamless checkout management. 

Management commentary

MyDeal founder and CEO Sean Senvirtne commented on the app launch, saying: 

Operating a leading online retail marketplace for home and lifestyle products, we understand that providing a seamless customer experience is vital, no matter how users choose to access our platform.

The native apps are a key part of our growth strategy of improving conversion and retention rates by continually refining the customer experience and optimising the site, harnessing the data from different channel usage across our platform and more effectively personalising our interactions and offers for customers.

Why the MyDeal share price is struggling 

Its been a challenging market for initial public offerings (IPOs), where shares more often than not go downhill after the first day of listing. Some recent examples include the likes of Youfoodz Holdings Ltd (ASX: YFZ), Payright Ltd (ASX: PYR) and Zebit Inc (ASX: ZBT). 

Furthermore, ASX e-commerce shares across the board have struggled amidst a period of tough comparisons against supercharged COVID-19 sales from last year. E-commerce shares including Kogan.com Ltd (ASX: KGN) and Redbubble Ltd (ASX: RBL) have fallen a respective 41% and 32% this year as growth moderates. 

More reading

• The Credit Clear (ASX:CCR) share price lower on third quarter update
• The MyDeal (ASX:MYD) share price is on watch. Here’s why
• Why retailers are stepping up as top performing ASX shares this week
• 3 under the radar ASX small cap shares to watch closely
• Looking for the next Afterpay and Zip? Try these small cap ASX shares

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 Kogan.com ltd. The Motley Fool Australia has recommended 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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The Impedimed Limited (ASX: IPD) share price is bouncing this morning after the company announced positive progress in its SOZO technology for heart patients. 

The Impedimed share price has been seesawing between the opening price of 12 cents and its current price of 12.5 cents per share, up 4.1%.

Founded and headquartered in Brisbane with US and European operations, Impedimed is a medical technology company that uses bioimpedance spectroscopy (BIS) technology, specifically its SOZO test, to help predict potential heart failure and prevent edemas and hospital readmission.

Impedimed is marketing its SOZO technology to US hospitals as a way of diagnosing the potential risk of future fluid overload in heart failure patients before they’re released.

What did Impedimed announce?

Impedimed advised today The American College of Cardiology (ACC) journal reported finding there was a strong clinical correlation between a heart failure patient’s HF-Dex level exceeding 51% at the time of release from hospital, and subsequent hospital readmission.

Impedimed’s SOZO technology tests the HF-Dex level (extracellular fluid to body water ratio) of a patient and the company believes this finding will eventually help promote the use of its SOZO tests in hospitals across the world. This is especially the case in the US, where hospitals must cover the cost of patient readmission if it occurs within the first 30 days of their release.

The conclusion from the abstract states that HF-Dex measurements near the time of hospital discharge may help identify individuals at higher risk for readmission and may benefit from closer follow-up to reduce the likelihood of readmission.

ACC journal author Annie Burns expanded on the risk of fluid overload in heart failure patients.

After a heart failure related hospital stay, patients may experience improvement in symptoms even though fluid overload persists. This analysis shows that SOZO with HF-Dex has the potential to identify patients with fluid overload, who are at higher risk of readmission at the time of hospital discharge and would benefit from closer follow-up.

Impedimed called this “a significant finding, as the cost of hospital readmissions is enormous, costing the US healthcare system an estimated $31 billion annually”.

More background on SOZO technology

SOZO is used in around 700 locations globally, as a point-of-care assessment tool to guide clinical decision-making and “maximise patient health”.

Using ImpediMed’s bioimpedance spectroscopy (BIS) technology, SOZO measures and tracks information about the human body to aid clinicians. According to the company, results from the 30-second test are available immediately on the device and online.

Impedimed share price snapshot

The Impedimed share price is up more than 200% over the past 12 months but has declined by nearly four cents since 2021 began.

More reading

• The Impedimed (ASX:IPD) share price rocketed 13% today. Here’s why

Motley Fool contributor Lucas Radbourne-Pugh 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, the S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. At the time of writing, the benchmark index is up 0.4% to 7,058.1 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

De Grey Mining Limited (ASX: DEG)

The De Grey share price has jumped a sizeable 10% to $1.53. Investors have been buying the gold explorer’s shares following the release of drill results from the Diucon-Eagle mining sites in the Hemi prospect. Management notes that these results confirm the presence of a large mineralised system in the west of Hemi, representing another step change to the gold endowment at Hemi.

Infomedia Limited (ASX: IFM)

The Infomedia share price is up 5.5% to $1.66. This morning the automotive software company announced the acquisition of automotive ecommerce platform SimplePart. It designs and manages ecommerce programs for some of the world’s leading car manufacturers, enabling them to sell directly to consumers. Infomedia has agreed to pay an upfront consideration of US$24.5 million (A$31.4 million), plus an earn-out of up to US$20.5 million over three years.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price has climbed 4.5% to $10.94. This follows a rise in the gold price overnight and the release of a positive broker note out of Ord Minnett. According to the note, the broker has retained its buy rating and lifted its price target to $13.50. The broker made the move after upgrading its earnings estimates to reflect stronger gold prices.

SEEK Limited (ASX: SEK)

The SEEK share price is up 3.5% to $31.76. This follows the announcement of a special dividend of 20 cents per share following the completion of its Zhaopin selldown. In addition, the job listings giant has upgraded its guidance for FY 2021 to reflect its stronger than expected performance in the SEEK Australia and Asia businesses.

More reading

• ASX 200 up 0.2%: SEEK hits record high, Flight Centre tumbles
• De Grey (ASX:DEG) share price rockets 11% on latest update
• Why the Infomedia (ASX:IFM) share price is on the rise today
• SEEK (ASX:SEK) share price jumps 7% to record high on trading update
• 5 things to watch on the ASX 200 on Tuesday

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Infomedia. The Motley Fool Australia has recommended Infomedia 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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Telstra Corporation Ltd (ASX: TLS) shares are in the green today despite news the company will have to pay a record $1.5 million fine. This came after it was found to have breached the rights of its customers during the initial stages of the COVID-19 pandemic. 

The Australian Communications and Media Authority (ACMA) said in a statement Telstra’s actions of blocking consumers from swapping their phone numbers to other providers between March and June 2020 was in contravention of the law.

The ability to keep (or port) your phone number between providers was introduced in 1997. It is intended “to provide service continuity for consumers changing telcos and to facilitate competition in telco markets,” according to the government agency.

At the time of writing, the Telstra share price is trading 0.57% higher at $3.51.

Telstra’s record fine

Telstra blocked porting facilities in March last year, as its overseas service centres were shut down by government lockdowns due to the raging virus. The company did not partially resume the service until July and did not clear the backlog of requests until October.

As a result, 42,000 services were unable to switch providers while keeping their landline numbers during this time. It should be noted customers can have up to a few hundred services. The number of breaches, therefore, is most likely below this figure.

Telstra both prevented new requests and unilaterally cancelled existing porting requests when the pandemic struck. At the time, Telstra said it had cleared this suspension with the regulator. ACMA denied this, investigated the company, and then issued today’s contravention notices.

The telecommunications watchdog says the company may face penalties of up to $250,000 if it breaches the portability code again.

While the $1.5 million fine is a record for the industry, it is arguably relatively minor for a company with a market capitalisation of $41.5 billion. And judging by today’s performance of the Telstra share price, investors don’t appear overly fazed by the news.

Telstra paid interim, fully franked, dividends worth approximately $950 million in February this year to shareholders. 

What did ACMA say?

ACMA said it can issue fines of up to $12,600 per breach. However, ACMA chair Nerida O’Laughlin said the agency took a more lenient approach because of the circumstances at the time.

“We appreciate Telstra had difficulties due to COVID-19 and we took this into account in our enforcement actions, including the size of the financial penalty,” Ms O’Laughlin said.

“However, it is clear Telstra, for a sustained period, did not have sufficient plans in place to comply with an important consumer safeguard that promotes competition in the telco market.”

Ms O’Laughlin also made it clear Telstra’s actions had wide-reaching and lengthy impacts on residential and business consumers, as well as the broader telco industry.

“Australian consumers must have the freedom to change their telco provider to take up services that best suit their needs. This includes keeping your own phone number even if you take your business elsewhere”.

“Local number porting is important for consumers and supports a competitive telco sector,” she added.

What about Telstra’s response?

When asked for comment by Motley Fool Australia, a spokesperson for Telstra said:

We agree that it’s important customers have the ability to take their numbers with them if they choose to move between providers.

This issue happened at the height of the first global wave of COVID, a time that tested everyone’s resilience and crisis management. Given the number of our people and services affected by the pandemic, we could not guarantee that numbers would be ported correctly and decided to hit pause until we could be sure that we would not leave people without a service. We did this in a way to ensure that Telstra did not receive any advantage over our competitors. We worked hard to get all our porting services operating again as quickly as possible.

Since then, we’ve made a range of changes to ensure we can continue to meet our regulatory obligation to provide number porting services.

Telstra share price snapshot

The Telstra share price has rallied by more than 16% in year-to-date trading. The telco giant’s shares are also up by almost 14% over the past year. Telstra shares are currently trading just 0.85% off their 52-week high seen in July last year.

More reading

• Why the Telstra (ASX:TLS) share price could be heading higher from here
• 2 quality ASX dividend shares that will help you beat low interest rates
• Why is the Telstra (ASX:TLS) share price rising today?
• ASX 200 Weekly Wrap: Shares have average week but a great month
• Should you always reinvest your ASX dividends with a DRIP?

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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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Warren Buffett and his right-hand man Charlie Munger are taking some flak from online trading platform Robinhood.

Buffett and Munger together co-chair Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B).

The legendary investors, now both in their 90s, are largely traditionalists when it comes to their investing style. Berkshire is known for buying quality companies at competitive prices and holding on to them for the long haul.

Little wonder then that the nonagenarians are no big fans of Bitcoin, to say the least.

During Berkshire’s annual general meeting, which took place in virtual space on 1 May, Warren Buffett also expressed his dismay with Robinhood. Buffett said the online trading platform has exacerbated the “casino aspect” of share market investing.

How did Robinhood respond to Warren Buffet?

Following Warren Buffett’s snub, Robinhood is firing back.

As Bloomberg reports, Robinhood’s head of public policy communications Jacqueline Ortiz Ramsay fired off a blog post saying:

People are tired of the Warren Buffetts and Charlie Mungers of the world acting like they are the only oracles of investing. Robinhood and other online trading platforms have opened the doors of financial markets to everyday people, deeply unsettling the old guard who will fight to keep things the same… At Robinhood, we’re not going to sit back while they disparage everyday people for taking control of their financial lives.

Ortiz Ramsay noted that most of Robinhood’s clients buy and hold shares to build their best eggs.

That may be true. Nonetheless…

Robinhood’s GameStop days

We’re pretty sure Warren Buffett didn’t jump onto the GameStop GameStop Corp. (NYSE: GME) craze.

Now, you probably haven’t read much about GameStop lately. That’s because the share price of the US-based video game and consumer electronics retailer has returned to some normalcy over the past 30 days. (It’s down about 15%.)

A very different story from the early months of 2021, when frenzied retail traders drove shares 708% higher in only 6 days, from 21–27 January.

Indeed, fortunes were made by some and lost by others who jumped onto the GameStop bandwagon. Often in a matter of days. On the losing side, anyone who bought shares on 29 January would have been looking at a paper loss of 72% by 2 February. Ouch!

Facing regulatory pressure and citing “recent volatility” Robinhood opted to freeze all buying in GameStop on its platform on 28 January. GameStop shareholders could still use Robinhood to sell their shares.

The online trading app also froze trading in other Reddit army fuelled shares, including AMC Entertainment Holdings Inc (NYSE: AMC).

The next day, Robinhood ceded to angry users by allowing limited trading in shares like GameStop. However, it maintained restrictions on the number of shares users could trade on any given day, as well as banning fractional shares.

Warren Buffett, we imagine, is unlikely to be impressed.

More reading

• Berkshire Hathaway reveals Warren Buffett’s eventual successor
• What Warren Buffett learned from investing during a global pandemic
• Warren Buffett hates Bitcoin. Here’s why
• Some takeaways from Warren Buffett’s Berkshire Hathaway meeting
• GameStop, soon to be debt-free, adds $551 million to coffers

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Berkshire Hathaway (B shares) and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short June 2021 $240 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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 Galileo Mining Ltd (ASX: GAL) share price is gaining ground today. Newfound momentum has sprouted from the company’s drilling update this morning.

At the time of writing, shares in the base metals explorer are trading 7.69% higher to 20 cents a share.

Approved and ready

Today’s excitement stems from the miner receiving statutory approvals. These approvals are in relation to the Delta Blues nickel prospect in the Fraser Range.

While Galileo had his eyes on the stars above, Galileo Mining is fixated on the treasures below. The small-cap mining explorer aims to provide the metals necessary for the electric future — nickel, copper, and cobalt.

Galileo has moved a step closer to this ambition, gaining approval for its drilling program. An initial 1,000-metre diamond drilling program is planned to commence in mid-June. The program will also test highly conductive targets at DB1 and DB2 in the Fraser Range region of Western Australia.

Additionally, Galileo Mining expects the drilling to be completed within three weeks of commencement. The findings will give clarity to the conductive anomaly found, exhibiting a strike length between 800 to 900 metres.

Managing director commentary

Contained in the release, Galileo managing director Brad Underwood commented on the progress:

The first drilling programs at our northern Fraser Range project identified highly prospective rocks with strong indications of nickel and copper at the Lantern Prospect. Following this confirmation of prospectivity we now enter our next phase of drilling optimistic that we can generate significant drill results at the Delta Blues prospect.

Today’s update, amplifying the Galileo share price, is less than a month after the company reported its discovery of the nickel target. On the target details, Mr Underwood stated:

Our target generation work at the Delta Blues prospect has utilised high quality data sets with positive interpretations by world class geological and geophysical professionals. The strength of the EM conductors, and their positions on the magnetic and gravity maps, present a compelling case of the potential for mineralisation. We look forward to updating the market as drilling gets underway and as the results of drilling are received.

Galileo Mining share price snapshot

The Galileo Mining share price has provided an 18% return in the last year to shareholders. However, the S&P/ASX 200 Index (ASX: XJO) has delivered a superior return of 32% over the same period. 

Furthermore, shareholders have also endured an erratic ride, with the share price fluctuating between 20 cents and 40 cents multiple times throughout the last year. 

More reading

• Why the Aston Minerals (ASX:ASO) share price is surging 6% today
• The ASX’s China problem is getting worse… and quickly
• The Boss Energy (ASX:BOE) share price is up 16% today. Here’s why
• Berkshire Hathaway reveals Warren Buffett’s eventual successor
• ResApp (ASX:RAP) share price surges 5% on new agreement

Motley Fool contributor Mitchell Lawler 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 Aston Minerals Ltd (ASX: ASO) share price is surging today. At the time of writing, the Aston Minerals share price is trading at 16 cents, up 6.45%. 

Below we take a look at what’s driving investor interest in the ASX gold share.

What did Aston Minerals report to spark investor interest?

Aston Minerals’ share price is rocketing after the company reported it has mobilised a second diamond drill rig at its Edleston Gold Project in Ontario, Canada.

The second rig will commence drilling along the northern repetition of Aston’s Edleston Main Prospect. Previous drill holes have yielded results of 116.1 metres at 2.59g/t Au from 196.1 metres. These results also include 1 metre at 90g/t Au from 220 metres and 4 metres at 31.07g/t Au.

The company also reported additional positive results from its ongoing review and validation of historical data across the Northern Edleston Zone acquired from former consultants at the site.

To date, Aston Minerals has completed 14 holes for 5,635 metres of drilling. Results for these samples are pending.

Management commentary

Commenting on the deployment of the second rig, managing director, Dale Ginn said:

The second diamond drill rig arriving to site provides us with the capacity to rapidly expand our exploration footprint across two discrete target areas at once. The Northern Edleston Zone appears to be a significant repetition of the body of mineralisation identified at the Edleston Main Zone. Based on the drilling to date, it appears that the transported cover sequence across Northern Edleston Zone is shallower than that of Edleston Main Zone.

Through interpreting the IP geophysics across the Northern Edleston Zone target, it appears that the chargeability anomaly extends in an arc like shape for approximately 900 metres of strike.

So far only 4 drill test holes have targeted this area. Additionally, the company reported that each hit substantial mineralisation.

Ginn also notes that “with the 3D inverted IP chargeability data we have the capacity to directly target the mineralisation.”

Aston Minerals released its quarterly activity report on Friday, 30 April. You can find that here.

Aston Minerals share price snapshot

You won’t hear Aston Minerals shareholders complaining about the company’s performance over the past 12 months. Especially with shares up an eye-popping 750%. That compares to a gain of 35% on the All Ordinaries Index (ASX: XAO).

The Aston Minerals share price has continued to be a stellar performer in 2021, with shares up 325 % year-to-date.

More reading

• The ASX’s China problem is getting worse… and quickly
• The Boss Energy (ASX:BOE) share price is up 16% today. Here’s why
• Berkshire Hathaway reveals Warren Buffett’s eventual successor
• ResApp (ASX:RAP) share price surges 5% on new agreement
• 2 ASX tech shares to buy in May 2021

Motley Fool contributor Bernd Struben 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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It’s no secret that the bilateral relationship between Australia and the People’s Republic of China has been on the rocks for a while now. A few months ago, I penned a piece discussing the ASX’s ‘China problem’. This all started last year when Australia called for an independent inquiry into the origins of the coronavirus pandemic. Following that, the Australian government has also been criticised by China for its comments on human rights violations in Xinjiang. As well as in Hong Kong. A resulting diplomatic tit-for-tat ensued, which has escalated into a series of trade boycotts from China. Last year saw China impose import restrictions on Australian wine and barley.

Today, a number of ASX companies have been severely damaged by these actions. Treasury Wine Estates Ltd (ASX: TWE) shares have seen some pain from these Chinese import restrictions. A2 Milk Company Ltd (ASX: A2M) and Bubs Australia Ltd (ASX: BUB) shares have gone backwards over falling Chinese exports and tightening daigou channels. Other China-exposed shares like Bega Cheese Ltd (ASX: BGA), Costa Group Holdings Ltd (ASX: CGC) Blackmores Limited (ASX: BKL) are no doubt watching nervously.

Well, things certainly aren’t getting better on the China front. In fact, things look to be getting worse. Much worse.

The ASX’s China threat grows

A report in The Sydney Morning Herald (SMH) today outlines how one of Australia’s top military generals has warned his troops that Beijing is “already engaged in grey-zone warfare” and described “a high likelihood” that armed conflict could break out between China, the United States, and, by extension, Australia.

The issue driving these tensions is the island of Taiwan. Australia’s defence minister, Peter Dutton, last week made similar claims, stating that a conflict over Taiwan “could not be discounted”. Taiwan is a democratic and self-governing island. But China claims it as part of its own territory. It has even promised to ‘reunify’ it with the mainland by force if necessary. Under the American Taiwan Relations Act, the US is obligated to assist Taiwan in its defences. And Australia, in turn, is bound to defend the United States under the ANZUS treaty.

If this awful outcome does eventuate, it will make the disputes of the past year or so look pitifully mundane by comparison. All bets would be off. And it’s likely that all Australia-China trade would cease. That’s a big deal for the ASX’s largest companies. Especially miners like BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG).

Let’s hope it doesn’t come to that. But for investors, this is certainly an area to keep a close eye on going forward.

More reading

• The A2 Milk (ASX:A2M) share price is up 5% in 5 days. Can it go higher?
• Why Bubs, IDP Education, ResMed, & Tyro shares are dropping today
• Deterra (ASX:DRR) share price outperforms on royalty update
• A2 Milk (ASX:A2M) share price continues to stink in April
• ASX miners set for tough start even as commodity premiums hit a 14-year high

Sebastian Bowen owns shares of A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO. The Motley Fool Australia owns shares of and has recommended A2 Milk, Blackmores Limited, COSTA GRP FPO, and Treasury Wine Estates Limited. The Motley Fool Australia has recommended 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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Shares in Boss Energy Ltd (ASX: BOE) are gaining today after news the company has all the permits it needs to start producing uranium in Australia. At the time of writing, the Boss Energy share price is rocketing 16.13% higher than yesterday’s closing price, trading at 18 cents.

Let’s take a closer look at the mineral exploration company’s announcement.

Production permission

Boss Energy shares are surging after the company announced positive results from its review of the permits required to produce uranium in South Australia.

The company has found it already holds all the necessary permits to get its Honeymoon project up and running, including those needed to up its nameplate production to 2.45 million pounds per year.

State and federal government approval has been received for Boss Energy to mine, process, store, transport, and export uranium. This means it’s one step closer to becoming Australia’s next uranium producer.

The review also found the company’s planned IX expansion and process modifications – aimed at reducing the project’s costs – can be combined with existing state and federal approvals.

Boss Energy has received Honeymoon’s mineral lease, EPA licences, and an approved transport management plan from the South Australian Government to move uranium oxide concentrate from the project to port. 

It also has the federal permits needed to possess nuclear material and to ensure the security of uranium oxide concentrate, as well as recently renewed federal export permissions.

Boss Energy also shared it has recently signed agreements to purchase 1.25 million pounds of uranium oxide concentrate. It says this will enhance the project’s financial position, increase flexibility in its funding and negotiations, and protect the project’s commissioning phase.

Commentary from management

Boss Energy managing director Duncan Craib commented on the company’s news, saying:

The soon-to-be-completed [enhanced feasibility study] will provide a roadmap to re-commissioning with simple modifications… Combined with a significant uranium stockpile locked in at attractive prices and all the required approvals and permits for near term production in place, Boss is well on track to be Australia’s next uranium producer.

Boss Energy share price snapshot

Following this morning’s news, Boss Energy shares have hit a new, 52-week high.

The Boss Energy share price is now up 80% year to date. It’s also 157% higher than it was this time last year.

The company has a market capitalisation of around $353 million, with approximately 2.2 billion shares outstanding.

More reading

• Why the Boss Energy (ASX:BOE) share price is charging higher

Motley Fool contributor Brooke Cooper 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.

The post The Boss Energy (ASX:BOE) share price is up 16% today. Here’s why appeared first on The Motley Fool Australia.

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