Tag: Motley Fool

Every year, Warren Buffett – chair and CEO of Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B) – holds one of the most anticipated events on the investing calendar. The annual meeting of Berkshire Hathaway shareholders is often branded the ‘Woodstock for capitalists’ for its wide following. 

In this meeting, Buffett, along with his sidekick Charlie Munger, give their opinions on the current state of the share market and the economy, as well as answer questions from shareholders. Since Buffett and Munger are regarded as two of the best investors of all time, what these gentlemen have to say is widely followed.

Berkshire’s 2021 meeting occurred over the weekend just gone. And, as always, Buffett gave us some very interesting insights into the current state of the markets. You can watch the full meeting here, but here are some takeaways.

Buffett: Inflation is here

Buffett was surprisingly upfront about the prospects for the dreaded scourge of inflation. He noted that “We’re seeing very substantial inflation… It’s very interesting. We’re raising prices. People are raising prices to us and it’s being accepted”.

He did note that this inflation was being caused by a “red hot” economic recovery in the United States. But he seemed to warn that it couldn’t go much hotter without increasing said inflationary pressures. “It just won’t stop… People have money in their pocket and they’ll pay the higher prices”.

Arguably, this is something that all investors should note. Especially given the recent comments on the matter by the Reserve Bank of Australia (RBA) and the US Federal Reserve.

Thumbs down for Robinhood

Another notable point that Buffett made was his ongoing distaste for the popular brokering platform Robinhood. He labelled the millennial-focused app as being “a very significant part of the casino aspect, the casino group, that has joined into the stock market in the last year or year and a half”. He went on to say that:

American corporations have turned out to be a wonderful place for people to put their money and save but they also make terrific gambling chips… If you cater to those gambling chips when people have money in their pocket for the first time and you tell them they can make 30 or 40 or 50 trades a day and you’re not charging them any commission but you’re selling their order flow or whatever…I hope we don’t have more of it.

Berkshire’s recent moves

Many investors were disappointed in the lack of activity from Berkshire Hathaway last year. Berkshire and Buffett have long enjoyed a reputation as crisis dealmakers. Buffett stitched together more than a few lucrative deals during the global financial crisis more than a decade ago.

But last year, Berkshire and Buffett seemed caught in the headlights. There were no big deals or large purchases made during the worst throes of the market crash last year. In fact, Berkshire’s most prominent move was to aggressively sell down stakes in airlines during the worst of the crash.

Buffett and Munger defended this action (and inaction). Munger stated that it would have been “crazy” for Berkshire to open its chequebook amid such uncertainty. In regards to the airline businesses, Buffett said that the politics of the government bailouts that the airlines received would likely result in a different outcome if the airlines were backed by Berkshire.

Still not wild on Bitcoin

Buffett and Munger have long been some of the most vocal critics of Bitcoin (CRYPTO: BTC) and other cryptocurrencies. It looks as though the recent rally in the pricing of these assets hasn’t changed any minds over at Berkshire.

“Of course I hate the Bitcoin success”, Munger said at one point. “I don’t welcome a currency that’s so useful to kidnappers and extortionists, nor do I like just shovelling out a few extra billions and billions of dollars to somebody who just invented a new financial product out of thin air. I think I should say modestly that I think the whole damned development is disgusting and contrary to the interests of civilisation”.

Ok Charlie, let us know how you really feel!

More reading

• ASX 200 Weekly Wrap: Shares have average week but a great month
• Why the Ether price gains are outpacing Bitcoin’s price rise
• Tesla’s $293 million of free cash flow in Q1 was an incredible year-over-year improvement
• Is today’s soaring Dogecoin price an attractive bargain or a dangerous bubble?
• Tesla’s Bitcoin sale helped boost quarterly profits

Sebastian Bowen owns shares of Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Berkshire Hathaway (B shares) and Bitcoin 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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Webjet Limited (ASX: WEB) shares are polarising investors at the moment.

As a leader in the online booking field, it feels like it will be a beneficiary of the post-COVID resurgence in travel.

However, it has had to raise capital multiple times since the pandemic struck just to stay alive. And in recent times, it has regularly featured at the top of the league table of most shorted stocks on the ASX.

This year Webjet shares started the year at $5.14 then rose to as high as $6.24. Now they have sunk down to $4.99 at the time of writing.

So if you were fortunate enough to buy this stock during the depths of coronavirus despair last year, do you take your winnings and run?

Three fund managers offered their take:

The case to sell Webjet shares

Sage Capital chief investment officer Sean Fenton reckons Webjet shares have had a good pandemic recovery run, and investors should cash in now.

“You might look at a share price chart and think ‘wow, it’s still cheap’. But they’ve done at least two,… maybe even three, equity issues in the last 12 months. Due to that, their market cap is now greater than it was pre-COVID,” he told a Livewire video.

Despite the rollout of vaccines and more freedoms for travel, there are still too many immediate hurdles for the company.

“It’s not necessarily the end of the pain in terms of generating cash flow for the business. For me, the value is not there for a company with so much uncertainty and earnings risk.”

The case to not sell Webjet shares

Perpetual portfolio manager Anthony Aboud would hold onto Webjet.

He thinks it’s “dangerous” to sell at the moment due to almost 10% of its stocks being shorted.

“With a big short interest like that, it can be dangerous to be short here,” said Aboud. 

“One thing working in their favour is that this is one of the companies people go to for exposure in the reopening trade. But I do agree with Sean. It has a higher enterprise value now than pre-COVID and I’m not 100% sure that the outlook is better.”

The case to buy Webjet shares

Not everyone is pessimistic about Webjet.

The Motley Fool reported last month that Ord Minnett brokers retained their buy rating for the online travel agency. The price target was even raised to $7.15, which would be a more than 40% gain from the current level.

“The broker believes the company is well-positioned financially to strengthen its competitive position in the B2B segment,” wrote my colleague James Mickleboro.

“This is due to a number of its competitors struggling financially during the pandemic.”

More reading

• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX
• Are ASX travel shares about to go through a big recovery?
• 5 things to watch on the ASX 200 on Wednesday
• Airbnb predicts huge rebound, ASX travel shares in the hot seat

Motley Fool contributor Tony Yoo owns shares of Webjet Ltd. The Motley Fool Australia owns shares of and has recommended Webjet 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 Magnis Energy Technologies Ltd (ASX: MNS) share price is lifting slightly today. As of writing, shares in the lithium-ion battery manufacturer are trading for 37.5 cents each – up 0.53%. At opening, shares were trading for 41.5 cents each. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.08% lower.

Today’s price movement comes after the company announced it has increased production capacity at one of its plants.

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

What did Magnis announce today?

In a statement to the ASX, Magnis said it has increased the production capacity at its 63% owned Imperium3 New York (iM3NY) lithium-ion battery plant in Endicott, New York to 1.8 gigawatt hours per year.

The increased productivity is possible, according to the company, because of equipment purchased from fellow manufacturer A123 Systems. The purchase was possible due a US$85 million funding package completed mid-last month. The equipment can be used to produce more of the same product iM3NY already makes, or to manufacture different cell designs.

Magnis claims it already has an estimated US$655 million in sales, through the form of binding offtake orders. 

Management commentary

Magnis Chair, Frank Poullas, said “with financing completed, the team in NY is focused on meeting production milestones.”

iM3NY CEO, Chaitanya Sharma, added “we are working around the clock to fast-track production at the iM3NY battery plant following the recent injection of substantial funding.”

Lithium’s bright future

Lithium-ion batteries, and by extension lithium itself, are seeing record levels of demand. That’s because demand for electric vehicles, which need lithium-ion batteries to function, is surging. It’s part of a broader trend that is seeing demand for greener technology in general increasing. Copper and platinum group elements are seeing similar price rises to lithium because of this clean technology dynamic.

Looking at lithium specifically, its price is up 93.55% since the beginning of 2021 to be at a 24-month record of approximately US$13,900 per tonne. The website Trading Economics expects its value to increase for at least the next 12 months.

Magnis share price snapshot

Over the past 12 months, the Magnis share price has risen 660%. In fact, since the first day of trading this year, the company’s value has appreciated 100%.

Magnis has a market capitalisation of $314 million.

More reading

• Why the Magnis Energy (ASX:MNS) share price is on a wild ride today

Motley Fool contributor Marc Sidarous 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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Brokers believe that there are a few ASX shares that are worthy of investor attention in May 2021.

If several brokers think that the business is a buy then it might be worth looking into. But there’s a possibility that they’re all wrong together.

These two businesses are well liked at the moment:

Idp Education Ltd (ASX: IEL)

This ASX share is rated as a buy by at least five brokers, including UBS which has a price target on the education business of $29.05. That suggests that the return over the next 12 months could be around 30%.

IDP Education is a business that helps people with course applications and visa requirements. It also helps people book and prepare for English language testing. It’s the co-owner of IELTS, the world’s leading English language test for study, work and migration purposes.

UBS thinks that the ASX share will get through COVID and have a better market position, whilst being able to utilise its technology to be better.

The FY21 first half result still showed a decline – revenue was down 29% and net profit was down 49%. However, it showed a recovery through the period. In-fact, by the end of December 2020, testing volumes were broadly in line with those experienced in December 2019.

The board even felt confident enough to pay a dividend of 8 cents per share.

However, the broker UBS pointed out that the COVID situation in India is troubling as the country makes up more than a third of forecast FY21 revenue.

At the current IDP share price, it’s valued at 53x FY22’s estimated earnings according to UBS.

Bapcor Ltd (ASX: BAP)

Bapcor is currently rated as a buy by at least six brokers. One of those brokers is Citi, which has a price target of $9.50. That means the return could be around 25% over the next 12 months.

This business has a number of sector-leading divisions such as Burson and Autobarn.

There are a number of different trends that are helping the ASX share right now. All of the government stimulus and the strong COVID circumstances means that the retail environment is strong for Autobarn. Supply chain disruptions also means that new car supply has been limited. Second hand cars are in high demand and people are also trying to make their own car last longer. That creates a strong market for many of Bapcor’s businesses.

The FY21 result showed a number of strong numbers for Bapcor. It reported revenue grew 25.8% to $883.6 million. Pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) grew 36.5% to $145.6 million and pro form earnings per share (EPS) went up 28.9% to 20.7 cents. The dividend was also increased by 12.5% to 9 cents per share.

In the coming years, Bapcor aims to significantly increase its earnings from Asia. It’s growing a network in Thailand and it has also made a large investment into Tye Soon – an auto parts business that has operations across several Asian countries.

Based on the Citi projections, Bapcor is valued at 21x FY21’s estimated earnings.

More reading

• Why Bubs, IDP Education, ResMed, & Tyro shares are dropping today
• Brokers name 3 ASX shares to buy now
• 2 excellent ASX growth shares tipped as buys
• Leading brokers name 3 ASX shares to buy today
• 3 ASX shares that keep growing the dividend every year

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor. 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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Seven West Media Ltd (ASX: SWM) shares are on the slide in afternoon trade after having been up by more than 9% earlier in the day. At the time of writing, the Seven West share price is trading 1.05% lower at 47 cents.

The movement comes after the company announced the signing of two agreements, along with providing an FY21 trading and debt update.

Let’s take a look at what the media company has been up to.

Sign-off on Google and Facebook deals

Judging by today’s Seven West share price, investors are ambivalent over the company’s latest statement to the ASX.

According to its release, Seven West Media has finalised its partnership with Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG)’s Google and entered into a long-form agreement with Facebook Inc. (NASDAQ: FB).

This follows the signing of letters of intent (LOI) with both of the tech giants that Seven West announced in February this year.

In today’s update, Seven West Media managing director and CEO, James Warburton commented:

The transformation of SWM continues. Finalisation of the Google and Facebook agreements completes one of the key objectives outlined in our February results, delivering further digital transformation, and realising the true value of our news and current affairs product on third-party digital platforms.

Both of the agreements are expected to initially produce digital revenue before the end of the current financial year. Most of the revenue, however, will come during FY22. Seven West Media anticipates it will need to spend a minimal amount to deliver project revenue.

The Google agreement will run for a period of 5 years, and the Facebook agreement is valid for a 3-year term.

Trading and debt update

In further news appearing to temporarily boost the Seven West share price, the company provided an update on its FY21 third-quarter (Q3) advertising revenue. In its half-year briefing delivered in February, Seven West had advised it expected revenue for the second half to grow by 7% to 10% on its February first-half results. In today’s update, the company reported that Q3 advertising revenue growth had been at the upper end of this range.

Net debt is projected to stand at around $270 million and $280 million by the end of FY21. The company noted that net proceeds of $45 million from the Airtasker Ltd (ASX: ART) initial public offering (IPO) in March were used to repaid debt obligations. In H2 FY21 to date, over $195 million in debt has been retired.

Mr Warburton went on to add:

Our balance sheet is now in a much stronger position and our FY21 Q4 content is positioned to deliver audience and share growth, particularly among people 25 to 54 and on 7plus.

Review of the Seven West Media share price

Seven West Media shares went through a difficult year in 2020, marred by the impact of COVID-19 on the industry. The company’s shares however, have since recovered strongly, posting roughly a 490% gain over the last 12 months. When looking at the year to date, its shares have increased by around 30%.

On valuation grounds, Seven West Media commands a market capitalisation of about $731 million, with 1.53 billion shares outstanding.

More reading

• 2 must-see takeaways from Facebook’s earnings call
• Why Facebook reported the most impressive earnings of 2021 so far
• Retail just changed. Forever…
• Why Facebook and Apple couldn’t lift the Nasdaq Thursday
• Why Airtasker, Ecofibre, Nuix, & Woolworths shares are sinking

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Aaron Teboneras 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 Alphabet (A shares), Alphabet (C shares), and Facebook. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Facebook. 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 S&P/ASX 200 Index (ASX: XJO) has started the week in a subdued fashion. In afternoon trade, the benchmark index is up a few points to 7,028.5 points.

Four ASX shares that are weighing on the market today are listed below. Here’s why they are dropping:

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is down 3.5% to 39.5 cents. This morning analysts at Citi retained their sell rating and 35 cents price target on the infant formula company’s shares. This follows the release of its third quarter update. While the broker notes that there are signs of improvement, it isn’t enough to become more positive. Particularly given how difficult it is for a small brand like Bubs to compete with far bigger players in China. It also sees the declining Chinese birth rate as a potential issue.

IDP Education Ltd (ASX: IEL)

The IDP Education share price has fallen 4.5% to $21.67. This decline appears to be due to concerns over demand for its services in the key India market due to rising COVID-19 cases. The Indian market is the biggest contributor to IDP Education’s profits, so the current crisis poses significant downside risk to earnings.

ResMed Inc. (ASX: RMD)

The ResMed share price has sunk 5.5% to $24.75. Today’s weakness follows a sharp decline on Friday night on Wall Street by its US-listed shares. Investors were selling ResMed’s shares after its third quarter update fell a touch short of expectations. Elsewhere, this morning Citi downgraded its shares to a neutral rating with a $28.50 price target.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price has fallen 2.5% to $3.65. This morning the payments company released its weekly update. And while that update revealed a 147% year on year increase in transaction value in April to $2.246 billion, this was broadly flat month on month. Investors appear disappointed with its lack of sequential growth.

More reading

• ASX 200 up 0.25%: Westpac result impresses, PointsBet jumps
• Leading brokers name 3 ASX shares to buy today
• Is the ResMed (ASX:RMD) share price good value after its Q3 update?
• ASX 200 drops 0.8%, Pointsbet jumps, Beach sinks
• Why Beach Energy, Bigtincan, Pointerra, & ResMed are sinking today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tyro Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO and Idp Education Pty Ltd. The Motley Fool Australia has recommended BUBS AUST FPO and ResMed Inc. 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 Torian Resources Ltd (ASX: TNR) share price is rising today after the company acquired a huge swathe of pastoral land called Tarmoola Station with a small mining business in Western Australia.

The Torian share price is up 8.89% to 4.9 cents at the time of writing.

Torian is a microcap gold mining company involved in various mining and exploration projects, including Zuleika, Mt Stirling, Malcolm, Bardoc, Gibraltar and many more.

Torian’s Tarmoola station and Carhill Contracting acquisition

Torian announced today that it’s bought a 172,662 hectare (424,748 acre) property at Tarmoola Station, along with the mining business located on the station — Carhill Contracting. .

Torian said the acquisition is to “help fast track further exploration and potential mining operation” at its Mt Stirling Gold Project. Tarmoola Station is 50% covered by mining and exploration leases, however some of these are abandoned.

Carhill has a cumulative free cash flow of ~$1,000,000 per annum (unaudited). The property acquisition provides Torian with a huge amount of property and subsequent resources in the area around Leonora, far inland on the border of the Australian spring reserves.

The deal includes $876,000 of equipment (independently valued), and ongoing contracts with regional miners and explorers. It also includes the rights to continuing carbon credits valued at approximately $360,000 per annum, approximately 1,100 head of cattle and a 20-person camp.

The camp includes $279,600 of independently valued hard assets with approvals in place and infrastructure built to upgrade to a 50-person camp with associated mess and kitchen facilities.

Torian management comments

Torian executive director Peretz Schapiro explained how the deal could benefit the company’s gold mining operations.

Our recent site visit has confirmed our convictions that moving ahead with purchasing the station fits very nicely with our long-term strategic goal of solidifying our land holding in the Leonora region as we progress with further exploration of the Mt Stirling Gold Project and potential mining operations. As owners of the pastoral lease we will be able to reduce our discovery cost per ounce and ensure that the process of obtaining permits for our exploration and potential future mining activities, is as seamless as possible.

The purchase of the Tarmoola Station is therefore seen as a crucial step towards fast-tracking the exploration of and potential mining production at the Mt Stirling Gold Project.

Torian share price snapshot

The Torian share price is up 67% so far in 2021 and 187% over the past 12 months.

More reading

• Why Bubs, IDP Education, ResMed, & Tyro shares are dropping today
• Nickel Mines (ASX:NIC) share price wobbles despite EV battery deal
• Why the AVZ Minerals (ASX:AVZ) share price is sinking 11% today
• The BBX Minerals (ASX:BBX) share price is rocketing today, up 15%. Here’s why
• Ingenia (ASX:INA) share price lifts after $220 million spending spree

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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The Nickel Mines Ltd (ASX: NIC) share price has been fluctuating today after the company announced it will diversify into nickel matte production for lithium batteries.

The Nickel Mines share price is down 0.4% to $1.13 at time of writing.

Nickel Mines is engaged in acquiring, exploring, and developing nickel projects. The company owns an interest in hengjaya mines in China, with its partner Shanghai Decent Investment. Let’s take a look at this latest update.

Nickel Mines expanding into lithium battery industry

Shanghai Decent (Tsingshan) has signed an MoU with Nickel Mines, allowing two of Nickel Mines’ four 80%-owned Rotary Kiln Electric Furnace (‘RKEF’) lines to undergo the necessary modifications to allow them to produce a nickel matte product suitable for sale into the electric vehicle (EV) battery market.

The specific details of capital modification costs, operating costs and selling arrangements with Shanghai Decent remain commercial-in-confidence and subject to a definitive agreement. However, the company released the following information.

“The required modification cost for each RKEF line is expected to be minimal (approximately US$1M per line) and the cash operating costs for producing a tonne of nickel in matte are expected to be comparable to the cash costs of producing a tonne of nickel in nickel pig iron.”

Despite the relatively comparable cost in production, the company says nickel matte achieves a higher price on market than nickel pig iron. 

Nickel Mines management comments

Managing director Justin Werner said that the agreement offers exciting potential for Nickel Mines in the EV market.

We are delighted that Nickel Mines has been given this opportunity to participate in this exciting transition into the EV battery supply chain, a development that further reflects and enhances our relationship with Tsingshan and our standing in the global nickel market. Our future ability to sell nickel matte into the EV battery supply chain provides a diversification of not only Nickel Mines’ production base but offers a broader exposure to the pricing dynamics of individual nickel markets that are expected to emerge over the coming years.

We believe the ability to become a meaningful supplier of nickel across multiple enduser markets will make Nickel Mines a truly unique investment proposition amongst other global producers and lay the platform for a broader array of future growth opportunities.

Nickel Mines share price snapshot

The Nickel Mines share price has fallen by more than 11% over the past week and month. It is, however, still up more than 113% over the past 12 months.

More reading

• ASX 200 Weekly Wrap: Shares have average week but a great month
• These were the worst performing ASX 200 shares last week
• Why Coles, Nickel Mines, Nitro, & Regis Resources are storming higher
• ASX 200 up 0.3%: Woolworths and Fortescue lower on updates, Newcrest impresses
• Brokers rate these ASX 200 shares a buy after quarterly results

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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The AVZ Minerals Ltd (ASX: AVZ) share price has started the week in a disappointing fashion.

In afternoon trade, the lithium-focused mineral exploration company’s shares are down 11% to 15.5 cents.

Why is the AVZ Minerals share price sinking today?

Today’s decline appears to have been driven by broad weakness in the lithium sector, which has offset the release of a positive announcement.

For example, the AVZ Minerals share price isn’t the only lithium share that is falling reasonably heavily today.

The Galaxy Resources Limited (ASX: GXY) share price is currently down 3%, the Orocobre Limited (ASX: ORE) share price is down 2.5%, and the Vulcan Energy Resources Ltd (ASX: VUL) share price is down 5%.

This is despite lithium prices performing strongly last week due to robust demand for the battery-making ingredient.

As most of these lithium shares have recorded strong gains recently, profit taking could be weighing on them today.

What did AVZ Minerals announce?

This morning AVZ Minerals announced that the Manono Special Economic Zone (MSEZ) decision is expected by the end of May 2021.

The company said: “AVZ is currently updating its MSEZ technical, development, environmental and financial documentation with additional information, as requested by the DRC Government. These documents will be submitted shortly with a decision on the granting of the MSEZ expected by the end of May 2021.”

AVZ Minerals Managing Director, Nigel Ferguson, also spoke about current market conditions, noting that these are supportive for the development of its Manono project.

He said: “Buoyant market conditions continue with both spodumene concentrate and lithium chemical prices strengthening on the back of rising electric vehicle demand, just as international Government policies advance the reduction of carbon emissions whilst securing strategic supply chains that feed domestic EV industries across the globe.”

“Both market and geopolitical factors have fuelled a steep increase in the SC6 price since the start of 2021, with reported prices in China up 56% . With expectations that structural supply deficits will remain and as the uptake of EV’s continues to increase around the globe, the current upward price trends for both spodumene concentrate and lithium chemical products are expected to continue,” he added.

But as positive as this is, it hasn’t been enough to stop the AVZ Minerals share price from tumbling lower today.

More reading

• Here’s why the AVZ Minerals (ASX:AVZ) share price is sinking today

Motley Fool contributor James Mickleboro 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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BBX Minerals Ltd (ASX: BBX) shares are soaring today after the company shared news it has developed an assay protocol for gold from its Ema Project.

At the time of writing, the BBX Minerals share price is up 15.38%, trading at 30 cents per share. Let’s take a closer look at today’s announcement from the mineral exploration company.

Test work results

BBX Minerals announced the results from test work done at its facility in Rio de Janeiro this morning.

The company said that after reviewing all the analytical methods and concepts tested to date, it’s finally found the best way to produce reliable and consistent gold assay results.

The tests aimed to perfect the recovery and analysis of gold from a surface sample taken from the company’s Ema project.

BBX Minerals conducted 10 separate tests, with 9 showing between 16.1 grams of gold per tonne and 23.2 grams of gold per tonne. One sample was significantly less – finding 7.9 grams of gold per tonne.

BBX Minerals will now use this method to analyse drill hole samples from both its 2017 and current drilling campaigns. It’s in the process of finding a laboratory to run the analytical program.

The company also announced it was continuing its work with the research institute IPT to find a parallel analytical method for the refinement of platinum group minerals and silver.

The program is expected to finish in mid-June, as long as no further COVID-19 restrictions are imposed.

Commentary from management

BBX Minerals CEO André J Douchane commented on the successful findings, saying:

This assay method is a combination of smelting and acid leach followed by either MIBK or precipitation of metal. The leach uses one acid for extracting gold and platinum and a different acid for extracting silver and palladium. Most importantly, this assay method is different from the 5-acid method developed by IPT in that it does not need specialty reagents and it can be done in a matter of a few hours instead of 4 to 5 days.

BBX continues working towards enhancing its extraction method aiming at enhancing recoveries for gold and other precious metals. We will begin assaying the drill holes as soon as we can get this assay method set up to be used at a 3rd party laboratory.

BBX Minerals share price snapshot

The BBX Minerals share price has been having a bumpy ride on the ASX lately, with today’s news levelling it with its starting price at the beginning of 2021 once more.

The BBX Minerals share price has gained 190% over the last 12 months, however.

The company has a market capitalisation of around $122 million, with approximately 434 million shares outstanding.

More reading

• BBX Minerals (ASX:BBX) share price plunges 17% on Brazilian COVID struggles

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 BBX Minerals (ASX:BBX) share price is rocketing today, up 15%. Here’s why appeared first on The Motley Fool Australia.

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