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Thomson Resources Ltd (ASX: TMZ) shares are soaring today, up 13.64% to 12.5 cents at the time of writing. In earlier trade, the Thomson Resources share price posted gains of almost 23% before retreating to its current level. 

This comes after the ASX resource share released a series of market-sensitive updates today, following on from its quarterly activity report released on Friday. We take a look at what’s motivating investors below.

What did Thomson Resources report?

The Thomson Resources share price is rocketing today after the company’s flurry of updates.

First, Thomson Resources reported it had restarted drilling at its Bygoo tin project in New South Wales. Drilling had previously been put on hold due to inclement weather. The drilling program is currently more than half completed, with another 1,500 metres of drilling in the pipeline.

Commenting on the drilling progress, Thomson Resources executive chair David Williams said:

We are happy with the progress of drilling at Bygoo and look forward to receiving first results towards the end of June 2021. Time permitting, we are hopeful of commencing the Bald Hill drilling program in the coming weeks. Due to unexpected laboratory delays caused by heightened activity in the region, the results from the Mallee Hen gold project have taken longer than expected, but we anticipate receiving them in the next few weeks.

Agreement on Mt Carrington gold and silver project

In a separate release this morning, Thomson Resources revealed it has now entered into a definitive agreement with White Rock Minerals Ltd (ASX: WRM) for a “3 stage earn-in and option to joint venture agreement”.

Thomson reported it can now move ahead to earn up to 70% of White Rock’s Mt Carrington gold-silver project. If Thomson so opts, it can also form a joint venture (JV) to fund additional exploration at the Mt Carrington leases for epithermal gold-silver (base metal) mineralisation and conceptual large copper-gold targets.

Commenting on the definitive agreement, Mr Williams said:

The signing of the definitive agreement is a great achievement for both Thomson and our partner at Mt Carrington, White Rock… Thomson has targeted, in aggregate, in ground material available for the strategy’s central processing facility of 100 million ounces of silver equivalent and with this agreement now executed, and following the completion of the Texas acquisition in the near future, we believe we will have achieved that target.

Matt Gill, White Rock CEO added, “Securing a quality partner to advance Mt Carrington is a key and timely step in White Rock’s strategy to unlock the value in all of our projects.”

In a busy few days for the company, Thomson Resources also released its quarterly activity report on Friday 30 April. Thomson reported it has been rapidly advancing its Fold Belt Hub and Spoke strategy, aiming for a centralised processing facility, and making progress at its Lachlan Fold Belt.

Thomson Resources share price snapshot

No doubt about it, Thomson Resources has shot the lights out over the past 12 months, with shares up an eye-popping 1,150%. By comparison, the All Ordinaries Index (ASX: XAO) has gained 36% over that same time.

Year to date, it’s been a bit slower for shareholders, with the Thomson Resources share price up 8.7% so far in 2021.

More reading

• REA (ASX:REA) share price eyes new record highs after running 10% in April
• Why the Sunrise (ASX:SRL) share price jumped 13% this morning
• The Novatti (ASX:NOV) share price is surging 7% today. Here’s why
• Kangaroo Island Plantation (ASX:KPT) share price rockets 7% on takeover bid
• ASX 200 up 0.25%: Westpac result impresses, PointsBet jumps

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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The Sunrise Energy Metals Ltd (ASX: SRL) share price shot for the sky this morning, rising by almost 13% in early trade. At the time of writing, shares in the mineral exploration company have pulled back slightly and are trading for $2.35 – up 5.86% on Friday’s close. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.07% higher.

Today’s price leap comes as the company announced a “bonanza grade platinum intersection” from one of its sites.

Let’s take a closer look at today’s news and what it means for the Sunrise share price.

Why the Sunrise share price is rising

In a statement to the ASX, Sunrise Energy Metals (formerly Clean TeQ Holdings) says it has found “significant” results from its platinum development at the Sunrise Project in New South Wales.

The best result, according to the company, was a 0.6m wide ore containing 129g per tonne of platinum, 1.23g per tonne of palladium, 1.79g per tonne of rhodium, 4.0g per tonne of iridium, 0.89g per tonne of osmium, and 0.28g per tonne of ruthenium.

Sunrise says its drilling results show the potential for even greater finds in the Phoenix Platinum Zone, which is within the Project.

Collectively, the metals found in this ore sample are known as platinum group elements (PGE). The large find by the company is pleasing investors, judging by the performance of the Sunrise share price this morning.

Sunrise Energy Metals Co-Chair, Robert Friedland, said:

We have long suspected that the Sunrise laterite may be the weathered surface expression of an Alaskan-style dunitic system that lies beneath – in the late 19th century this area was the world’s largest source of platinum and remains the site of the only primary platinum mine in Australia.

He added:

Although it’s still early days for this new and exciting development, this stunningly high-grade platinum intercept is highly encouraging in terms of the potential for what may lie below this amazing Sunrise ore body. We will be following up this initial success with great enthusiasm.

PGE commodity trading

PGE metals have been increasing in price on the commodities market since the beginning of the year.

Platinum is 12.77% greater (US $1,202.43 per troy ounce), palladium is up 20.29% (US $2,945.90 per troy ounce), and rhodium is an incredible 73.53% higher since the start of 2021 (US $29,500 per troy ounce).

According to the website Trading Economics, PGE metals are expected to continue their upward climb for the foreseeable future, as government and industry invests in greener technologies. PGE metals are used as catalysts to lower the emissions from combustible car engines.

Other metals experience similar upswings due to the green revolution are lithium and copper.

Sunrise share price snapshot

Over the past 12 months, the Sunrise share price has increased 14%. It is, however, 38% lower compared to its 52-week high of $3.85. This record was achieved in September 2020.

Given its current valuation, Sunrise Energy Metals has a market capitalisation of $196 million.

More reading

• The Novatti (ASX:NOV) share price is surging 7% today. Here’s why
• Kangaroo Island Plantation (ASX:KPT) share price rockets 7% on takeover bid
• ASX 200 up 0.25%: Westpac result impresses, PointsBet jumps
• Why the Race Oncology (ASX:RAC) share price is frozen
• Worley (ASX:WOR) share price slides despite new contract

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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Novatti Group Ltd (ASX: NOV) shares are gaining today, following news the company is ready to launch its banking business. At the time of writing, the Novatti share price is up 7.2%, with shares in the company swapping hands for 67 cents apiece.

Let’s take a closer look at the news the banking and payments company released this morning.

Ready for action

Novatti announced today it has partnered with international financial service provider BC Investment Group Holdings. As a result, Novatti is now in a position to launch its banking business, subject to regulatory approval.

As part of the partnership, BC Invest will provide Novatti’s dedicated banking subsidiary, Novatti B Holding Company (NBHC), with $2 million in its first round of funding. In return, BC Invest will receive a 19.9% stake in NBHC.

In its second round of funding, BC Invest will provide NBHC with another $2.5 million. Novatti will also invest another $3 million into NBHC.

After the funding rounds, Novatti will hold a 57% stake in NBHC while BC Invest holds a 19% stake.

At this point, NBHC will have a post-money valuation of $35 million. This will allow it to begin its banking business immediately after it receives regulatory approval.

Novatti’s application for a banking licence from the Australian Prudential Regulation Authority (APRA) was delayed due to COVID-19. APRA has now resumed operations as normal.

BC Invest will also pay $3 million for approximately 6.8 million shares in Novatti, which equals 43.9 cents per share.

BC Invest’s CEO David Hinde said the company’s investment in NBHC would provide customer access to Novatti’s payment services before transition to the proposed digital bank’s platform. It will also help the development of its own technology platform.

Commentary from management

Novatti Group managing director Peter Cook commented on the partnership, saying:

Developing Novatti’s new banking business is a key pillar of our long-term growth strategy to provide value-add to our existing, established businesses…

[BC Invest’s] capabilities will be invaluable in bringing income-generating products, including lending products, to market, which APRA has made clear is a priority for all banking licence applicants in addition to their deposit-taking credentials.

Novatti share price snapshot

The Novatti share price has performed well on the ASX lately.

Currently, shares in Novatti are up 144% year to date and have risen 273% over the last 12 months.

The company has a market capitalisation of around $144 million, with approximately 232 million shares outstanding.

More reading

• Why the Novatti Group (ASX:NOV) share price is tumbling 5% today
• Novatti (ASX:NOV) share price rockets 27% on Afterpay deal
• Why the Novatti (ASX:NOV) share price is soaring 5% today

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.

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The Kangaroo Island Plantation Timbers Ltd (ASX: KPT) share price is surging today after the company was subject to a complete takeover bid from an investment fund called Samuel Terry Asset Management.

The Kangaroo Island Plantation share price is up 7.6% to $1.13 per share as a result.

Kangaroo Island Plantation is a logging and timber business located on Kangaroo Island off the coast of South Australia. The company has been subject to multiple takeover and land-acquisition bids since the devastating Kangaroo Island fires wiped out its plantations, so let’s take a look at this latest offer.

Kangaroo Island Plantation takeover bid

Samuel Terry Asset Management’s bid is to buy all fully paid ordinary shares in Kangaroo Island Plantation for $1.05 per share. The bidder has appointed Third Party Platform as its broker for the purchase of the Kangaroo Island Plantation shares on-market. 

On-market means the offer is unconditional, and provides current Kangaroo Island Plantation shareholders “a simple cash exit from [their] investment” according to the company’s release.

Samuel Terry’s offer states that $1.05 per share “is equivalent to the closing price of Kangaroo Island Plantation shares on 30 April 2021 (the last trading day prior to the announcement of the offer).

It’s also equivalent to the 1 month volume-weighted average price (VWAP) of the company’s shares to 30 April 2021 and represents a premium of 3% to the 3-month VWAP of the company’s shares ($1.02).

The release also stated that it “the offer is a best and final offer, and the bidder will not increase the offer price.”

Kangaroo Island Plantation’s share price rose significantly at the beginning of last month, after the company rejected a land purchase deal worth $20 million. The company says its land holdings on the island are worth more than $60 million alone. Company director Keith Lamb said at the time:

While the company is open-minded to approaches it receives, the board is squarely focussed on maximising shareholder wealth and with this in mind, offers are considered on merit. This resolve has not altered since the tragic fires of 2019-20.

Kangaroo Island Plantation share price snapshot

The Kangaroo Island Plantation share price is up 3.2% the past week and 5.6% the past month, but has fallen 11% since 2021 began.

More reading

• ASX 200 up 0.25%: Westpac result impresses, PointsBet jumps
• Why the Race Oncology (ASX:RAC) share price is frozen
• Worley (ASX:WOR) share price slides despite new contract
• Moderna just made the Pfizer vaccine’s biggest weakness an even bigger one
• Westpac (ASX:WBC) share price up 4%: Here’s an expert’s opinion

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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a mildly positive note. The benchmark index is currently up 0.25% to 7,043.7 points.

Here’s what is happening on the market today:

Westpac half year result impresses

The Westpac Banking Corp (ASX: WBC) share price is charging higher on Monday following the release of its half year results. Westpac reported cash earnings of $3,537 million for the six months, which was a 256% increase over the prior corresponding period and a 119% lift over the second half of FY 2020. This allowed the Westpac board to declare a fully franked interim dividend of 58 cents per share, which represents a payout ratio of ~60%. Another positive is the bank’s cost cutting plan. Westpac is targeting an $8 billion cost base by FY 2024 to materially improve its efficiency. This compares to a ~$10.2 billion cost base in FY 2020.

PointsBet share price shoots higher

The Pointsbet Holdings Ltd (ASX: PBH) share price is shooting higher today after being the subject of a couple of bullish broker notes. Goldman Sachs has responded to the sports betting company’s third quarter update by retaining its buy rating with a slightly reduced price target of $17.20. Whereas Credit Suisse has upgraded its shares to an outperform rating with an improved price target of $16.15.

Transurban investor briefing

The Transurban Group (ASX: TCL) share price is trading lower today following the release of its investor briefing. At the briefing, the toll road operator revealed that average daily traffic across the group increased 13% during March compared to the prior corresponding period. The prior corresponding period was of course when COVID-19 first started to impact its roads.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the PointsBet share price with a 7% gain. This follows the positive response to its third quarter update by brokers. The worst performer has been the ResMed Inc (ASX: RMD) share price with a 4.5% decline. This follows a sharp decline by its US-listed shares on Friday night.

More reading

• Westpac (ASX:WBC) share price up 4%: Here’s an expert’s opinion
• Leading brokers name 3 ASX shares to buy today
• Deterra (ASX:DRR) share price outperforms on royalty update
• Leading broker tips PointsBet (ASX:PBH) share price to shoot higher
• Is the ResMed (ASX:RMD) share price good value after its Q3 update?

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 Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended Pointsbet Holdings Ltd 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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Race Oncology Ltd (ASX: RAC) shares are in a trading halt today as the company seeks to raise an undisclosed amount of capital. At Friday’s close, the Race Oncology share price was trading at $3.07 after significant falls over the past week and month.

Race is a specialty pharmaceutical company engaged in the development and marketing of a pharmaceutical drug for the treatment of cancer. Its best-known product is Bisantrene, a cancer chemotherapy drug.

Capital raising

In today’s ASX update, Race Oncology requested its shares be placed in a trading halt until Wednesday 5 May or until it provides a further update regarding a capital raising. Today’s announcement didn’t outline the amount of capital the company is seeking to raise or its purpose.

Given recent news from Race Oncology, however, it’s possible the funds are required to progress further studies and trials of Bisantrene, which has returned multiple positive trial results across Australia and the United States. 

The company’s shares edged higher on 28 April after it announced it had entered into a collaborative preclinical research program with The University of Newcastle to further trial Bisantrene’s efficacy. 

The Race share price has risen more than 920% over the past 12 months based on the company’s reports and trial evidence regarding Bisantrene. According to the company, current studies are trialling “cellular models to investigate Bisantrene as a novel treatment for clear cell renal cell carcinoma (ccRCC)”.

Bisantrene has been studied for its effects on inhibiting cancerous cells in multiple human organs, including skin. The company’s shares rose by more than 10% on 15 April after an announcement stating Bisantrene was an effective inhibitor of skin cancers.

Bisantrene was found to inhibit cancerous cells by stopping the production of a human fat mass and obesity-associated protein. This protein releases a low-level of arsenic, which is poisonous and can transform healthy cells into malignant cancers.

By preventing the production of this protein, Bisantrene can therefore prevent the protein’s role in promoting cancerous cell transformations.

Race Oncology share price snapshot

The Race Oncology share price has risen by around 75% in 2021 so far, rising from $1.75 to its current level in four months. Based on its current valuation, Race Oncology has a market capitalisation of around $433 million.

More reading

• Why the Race Oncology (ASX:RAC) share price is racing higher
• Why Ampol, Netwealth, Orocobre, & Race Oncology shares are storming higher
• Why the Race Oncology (ASX:RAC) share price is rocketing 10% higher

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 Worley Ltd (ASX: WOR) share price is in negative territory during mid-morning trade today despite news of a contract award.

At the time of writing, the global engineering company’s shares are fetching $10.75 apiece, a decline of 1.1%.

What did Worley announce?

Investors appear unfazed by the company’s latest contract win, sending Worley shares into the red.

In this morning’s release, Worley advised it has been awarded a services agreement by CITGO Refining and Chemicals Company L.P.

Under the contract, Worley will provide maintenance, turnaround and sustaining capital services to CITGO’s refineries in the United States.

Situated in Lake Charles, Louisiana and Corpus Christi, Texas, both facilities will see roughly 600 people perform upgrade works. Worley noted that the contractors to be used have previous experience at the sites, providing a seamless delivery of its services.

The contract will run for 5 years and will be managed by Worley’s US field services team.

Worley CEO Chris Ashton welcomed the new deal, saying:

As a global professional services company with an extensive track record of sustaining and optimising refineries globally, we are pleased that CITGO has engaged Worley for services to its Louisiana and Texas facilities.

We look forward to supporting CITGO to deliver on its operational and production targets by providing sustainable and reliable site operations at these refineries.

About the Worley share price

Worley, a leading global engineering company, provides design and project delivery services, including maintenance, reliability support services, and advisory services. The business operates in the energy, chemical and resources sectors.

Over the past 12 months, the Worley share price has gained close to 30% but fallen around 6% year-to-date. The company’s shares took a hit at the start of February after it provided a business update on the impact of COVID-19.

Worley has a market capitalisation of almost $5.6 billion at today’s prices, with just over 522 million shares outstanding.

More reading

• Worley (ASX:WOR) share price seesaws on latest contract award
• ASX 200 drops, Santos entices CEO, Centuria acquires again
• Worley (ASX:WOR) share price edges lower despite contract award

Motley Fool contributor Aaron Teboneras 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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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.

Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA) have been close rivals in the COVID-19 vaccine race ever since they announced the starts of their phase 3 vaccine trials — on the very same day back in July. But Pfizer edged ahead en route to the finish line. The big pharmaceutical company scored the first FDA emergency use authorization (EUA) for a coronavirus vaccine in December.

Still, Moderna wasn’t far behind — the smaller biotech company’s vaccine earned its EUA only seven days later.

Since then, the two companies have continued the competition largely in tandem. So far, 49 million Americans have gotten both doses of the Pfizer vaccine — developed under the code name BNT162b2, but now called Comirnaty — while 40 million have completed their regimens of Moderna’s vaccine, still called mRNA-1273. Both companies also are working on booster shots, and conducting the necessary clinical studies that will allow them to start inoculating kids and teens, too. But Comirnaty has one big weakness. And that weakness plus Moderna’s latest news may help mRNA-1273 jump ahead.

A key difference between the two mRNA vaccines

Pfizer and Moderna both developed mRNA vaccines for COVID-19. They use messenger RNA to induce the body to produce a key protein found on the surface of the coronavirus. Then, the immune system creates antibodies that recognize that protein, thus preparing the body to fight off the coronavirus. But their vaccines are not identical. One of the big differences from the start has been their storage temperature requirements. And that’s where Pfizer’s weakness lies.

For longer periods, Comirnaty must be stored at ultra-cold temperatures — between minus 112 degrees Fahrenheit and minus 76 degrees Fahrenheit. The vaccine may be kept at standard refrigerator temperatures for five days.

As Pfizer has collected more data, it has been able to loosen some guidelines for shorter-term storage. For instance, the company earlier this year said its vaccine may be stored at relatively higher temperatures (minus 13 degrees Fahrenheit to 5 degrees Fahrenheit) for two weeks. These are temperatures that standard pharmaceutical freezers can maintain. The Food and Drug Administration approved those new storage guidelines.

So, pharmacies and healthcare facilities can easily store the Pfizer vaccine for 19 days. I’m counting the refrigerated temperature period and the pharmacy freezer temperature period.

Easier from the start

Moderna’s mRNA-1273 has offered an easier storage profile from the start. Right now, the guidelines say it can be kept at standard refrigerator temperatures (35.6 degrees Fahrenheit to 46.4 degrees Fahrenheit) for as long as one month. It can be stored for as long as seven months in a standard freezer. But this week, Moderna said further research showed that mRNA-1273 can be safely maintained at refrigerator temperatures for up to three months. The FDA still must approve those new guidelines.

Moderna also is studying new formulations of its coronavirus vaccine that would further improve its storage profile.

The possibility that Moderna’s COVID-19 vaccine could be stored for as long as three months in a standard refrigerator could give it an even bigger leg up in the marketplace. Pfizer ensures the safe transport of its vaccine with special thermal containers. But in smaller healthcare settings, the problem is on-site storage. Many doctors’ offices or pharmacies may prefer to stock up on a vaccine that can be kept in a refrigerator for a long period of time. They may have limited freezer space — or no freezer space at all.

And in some countries, temperature requirements could be decisive when it comes to which vaccine governments and healthcare providers choose. Nigeria, for instance, said earlier this year it would favor vaccines that require less cooling.

An evolving vaccination situation

When COVID-19 vaccines first began to roll out, countries were aiming simply to vaccinate as many people as possible, as rapidly as possible. So, they ordered what was available. But as various vaccine makers continue to ramp up production and refine their offerings, countries will have more choices — and a bit more time to consider those options. This is when Moderna could take the lead.

Will this mean major market dominance for Moderna and a big loss of revenue for Pfizer? No. True, mRNA-1273 could move into the top spot due to its easier storage requirements. But if that happens, Pfizer’s Comirnaty will remain close behind it. No single company can make enough doses to vaccinate the more than 7.8 billion people in the world with the necessary speed. Moderna and Pfizer each aim to produce 3 billion doses of their coronavirus vaccines next year, and each requires a person to get two doses. So even if a country prefers Moderna’s vaccine, for example, it likely will still have to order some doses from another vaccine maker to cover all its citizens.

The Moderna vaccine’s easier-to-manage temperature requirements won’t upend Pfizer’s prospects for billions in dollars of sales of Comirnaty. But this latest news is likely to lead to a boost in orders for mRNA-1273, and may significantly increase Moderna’s product sales over the long term.

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

More reading

• Only 40% of Australians want the AstraZeneca vaccine. What could this mean for CSL (ASX:CSL)?
• 4 healthcare share tips from a fundie with a health PhD
• Why the CSL (ASX:CSL) share price has rebounded 13% since March
• Wesfarmers’ (ASX:WES) Bunnings open to hosting COVID vaccine hubs

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Moderna Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Westpac Banking Corp (ASX: WBC) share price has been a particularly positive performer on Monday.

At the time of writing, the banking giant’s shares are up over 4% to a 52-week high of $26.08.

Why is the Westpac share price charging higher?

The catalyst for the strong rise in the Westpac share price on Monday has been the release of its half year results.

In case you missed it, for the six months ended 31 March, Westpac reported a statutory net profit after tax of $3,443 million and cash earnings of $3,537 million.

The latter was a 256% increase over the prior corresponding period and a 119% lift over the second half of FY 2020.

This allowed the Westpac board to declare a fully franked interim dividend of 58 cents per share, which represents a payout ratio of ~60%.

Goldman Sachs was forecasting cash earnings of $3,400 million, which means Westpac outperformed expectations. This goes some way to explaining the rise in the Westpac share price today.

Expert opinion

The Senior Portfolio Manager from Plato Investment Management, Dr Peter Gardner, has been looking over the result and gave his opinion.

He said: “The half year results from Westpac support the notion that Australian banks have navigated the COVID-19 crisis exceptionally well and now we think their Australian investors, particularly the mums, dads and retirees, can breathe a sigh of relief.”

Dr Gardner believes the result points to a major turning point for bank dividends, which could bode well for the Westpac share price.

He explained: “Westpac’s results and the imminent results from its banking peers should signal a major turning point for dividends. The significant write back of provisions by Westpac is something investors should see repeated across the board and while the massive cash earnings growth comes from a low base, it’s certainly encouraging for the sector as a whole.”

“The reinstated interim dividend comes in significantly above that paid in 2020 and importantly puts it on a 6.6% annualised gross yield, with a payout ratio that is conservative at 60%,“ Dr Gardner added.

Capital returns to come?

The portfolio manager also suspects that Westpac’s margins and capital position could allow it to return additional funds to shareholders in the future.

“We are also encouraged by Westpac’s increase in net interest margin and strong CET1 capital ratio of 12.3% well above APRA’s 10.5% unquestionably strong level, giving it scope to return capital to investors in the future.”

Another positive that the portfolio manager picked up on was its cost reduction plans. He notes that the banking giant is aiming to reduce its cost base by 21% by FY 2024 compared to FY 2020 levels.

Overall, Dr Gardner believes that things are looking very positive for income investors.

He concluded: “The outlook for income investors looks remarkably bright, especially when you consider how things were looking just six months ago. While income from cash-backed assets continues to languish fortunately we are in the midst of a major turning point for dividend income, buoyed by the strong recovery of financials and also the continued strength of our major miners. We project the ASX200 is on track to return around 5% gross yield in the coming 12 months.”

The Westpac share price is now up an incredible 32.5% since the start of the year. 

More reading

• This is the best of the big ASX banks: fundie
• ASX 200 Weekly Wrap: Shares have average week but a great month
• Westpac (ASX:WBC) share price on watch after posting $3.5 billion cash profit
• 5 things to watch on the ASX 200 on Monday
• 7 ASX 200 shares with emission reduction strategies

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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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Andromeda Metals Ltd (ASX: ADN) shares are falling today despite the company updating the market on its carbon capture initiatives. At the time of writing, the Andromeda share price is trading 2.22% lower at 22 cents.

It should be noted that the South Australian miner also released its quarterly activities and cash flow report after market close on Friday. 

Let’s take a closer look at today’s sustainability update from the ASX resource share.

What update did Andromeda Metals report?

The Andromeda Metals share price is edging lower today after the company’s latest market updates.

The ASX resource share, which aims to be a leader in sustainable industrial minerals production, is the joint owner of Natural Nanotech Pty Ltd, along with its partner Minotaur Exploration Ltd (ASX: MEP).

In this morning’s announcement, Andromeda reported it has signed a $4 million research partnership with the University of Newcastle’s Global Innovative Centre for Advanced Nanomaterials (GICAN). The partnership will fund research into carbon dioxide capture through the use of halloysite nanotubes.

According to the release, “The research will investigate the conversion of halloysite nanotubes into advanced nanomaterials that can be utilised as novel adsorbent systems and catalysts for CO2 capture and conversion processes.”

The captured carbon dioxide can then either be stored or potentially converted into low-carbon fuels and chemicals.

On 16 April, Professor Ajayan Vinu, Director of GICAN, commented on the carbon capture research, saying:

GICAN team is actively working on increasing the specific surface area of the activated nanocarbon with the aim of reaching the target of 2 tonnes of CO2 per tonne of the adsorbent.

In addition to the CO2 adsorption, our team in collaboration with Andromeda, Minotaur and Natural Nanotech, is currently investigating the conversion of the adsorbed CO2 into fine chemicals, which is quite exciting and will make a huge impact in the field of CO2 chemistry.

Andromeda Metals share price snapshot

Notwithstanding today’s falls, Andromeda Metals has posted a stellar year, with shares up 340% over the past 12 months. This more than handily beats the 36% gains posted by the All Ordinaries Index (ASX: XAO) over the same timeframe.

Year to date, the Andromeda Metals share price has been struggling, with shares down 29% so far in 2021.

More reading

• Why is the Andromeda (ASX:ADN) share price on a rollercoaster today?

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.

The post Andromeda Metals (ASX:ADN) share price falls despite project update appeared first on The Motley Fool Australia.

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