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The Universal Biosensors Inc (ASX: UBI) share price has spent the day in negative territory today despite the company announcing a new distribution deal.

During the early afternoon trade, the medical diagnostics company’s shares are swapping hands for 69 cents, down 1.4%. In comparison, the All Ordinaries Index (ASX: XAO) is sitting at 7,350 points, up 0.4%.

What did Universal Biosensors announce?

In today’s statement, Universal Biosensors advised it has entered into an exclusive distribution agreement with Grapeworks NZ Limited.

The arrangement will see Universal Biosensors supply its wine testing platform device, Sentia for the New Zealand market. The deal will last for 5 years, provided initial and minimum annual purchase volumes are met. Furthermore, the contract will be subject to the usual customary conditions with attached renewal options available to both parties.

The latest agreement follows the company’s progress in delivering its Sentia products across global markets since March 2021.

During the last couple of months, Universal Biosensors has secured distribution deals in Australia, the United States, New Zealand, Canada, Chile and South Africa. This has provided the company with access to over 14,000 wineries, reflecting strong demand for its product.

What did management say?

Universal Biosensors CEO John Sharman welcomed the outcome, saying:

Grapeworks is UBI’s exclusive distribution partner for Sentia in Australia, so for them to extend our agreement to cover New Zealand’s 500+ wineries demonstrate a strong financial commitment and belief in the future success of Sentia.

Grapeworks NZ managing director Malcolm Wilson went on to add:

Sentia has been well received by our Australian customers. We have been doing our due diligence on an expansion into New Zealand and believe that Sentia is a great product to spearhead our launch.

Universal Biosensors share price review

The Universal Biosensors share price has performed considerably well, gaining close to 240% over the past year. The company’s shares recently reached a multi-year high of 84.5 cents earlier this month.

Based on the current share price, Universal Biosensors commands a market capitalisation of $119 million, with 177 million shares outstanding.

More reading

• Universal Biosensors (ASX:UBI) share price dips despite latest update
• Universal Biosensors (ASX:UBI) share price sinks despite new deal
• Why the Universal Biosensors (ASX:UBI) share price is up 6% today
• Here’s why the Universal Biosensors (ASX:UBI) share price is soaring 10%
• Why the Universal Biosensors (ASX:UBI) share price is shooting 36% higher today

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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Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again this week. This has led to the release of a number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Coles Group Ltd (ASX: COL)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $20.25 price target on this supermarket giant’s shares following its third quarter update. Although the broker acknowledges that Coles fell a touch short of the market’s expectations, it believes this was already priced into its share price. In addition, the broker isn’t convinced that a price war in the industry is coming. As a result, it sees a lot of value in the company’s shares at the current level. The Coles share price is fetching $16.36 this afternoon.

IDP Education Ltd (ASX: IEL)

Analysts at UBS have retained their buy rating but trimmed the price target on this language testing and student placement company’s shares to $29.05. According to the note, the broker points out that the Indian market is IDP Education’s most important market, contributing over a third of its expected revenue in FY 2021. In light of this, it does see the COVID-19 crisis in the country as a risk to earnings. Nevertheless, long term it believes the company is well-placed and expects it to come out of the pandemic in a stronger market position. Particularly given its software business. The IDP Education share price is trading at $22.67 on Thursday.

Life360 Inc (ASX: 360)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted their price target on this technology company’s shares to $8.30. According to the note, the broker was pleased with Life360’s first quarter update. It also notes that the company has just announced the acquisition of Jiobut, which opens up cross-selling opportunities. Overall, the broker is very positive on its outlook and sees strong growth ahead. The Life360 share price is trading at $5.92 this afternoon.

More reading

• Why Coles, Nickel Mines, Nitro, & Regis Resources are storming higher
• Is the Coles (ASX:COL) share price in the buy zone after its update?
• 5 things to watch on the ASX 200 on Thursday
• 2 excellent ASX growth shares tipped as buys
• ASX 200 up 0.5%: Coles Q3 update, Westpac settles class action, JB Hi-Fi loses its CEO

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 Idp Education Pty Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Life360, Inc. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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Volpara Health Technologies Ltd (ASX: VHT) shares are gaining today after the company released its quarterly results. At the time of writing, the Volpara share price is up 6.25%, trading at $1.36 apiece.

Volpara is a health technology software company, providing an integrated breast care platform to deliver personalised breast care. Let’s take a closer look at the New Zealand-based company’s latest results.

Fourth-quarter results

The company released its results for the fourth quarter of the 2021 financial year this morning, garnering a positive reaction from investors.

Good news from the company included a record cash income from customer receipts, equalling NZ$5.4 million. That figure represents a 15% increase compared to the fourth quarter of 2020.

The company’s subscription-based receipts were also up, raking in NS$18.3 million – a 39% year on year increase.

Volpara also announced increases in its unaudited cash receipts for the full year ending 31 March 2021, up 20% year on year.

Its net operating cash outflow was better than the company’s internal forecasting, and it ended the quarter with $32.2 million cash in the bank.

Volpara’s earnings before interest, tax, depreciation and amortisation (EBITDA) came in at a loss of NZ$3,432,000.

Today is the second time Volpara’s share price has reacted positively to its results for this quarter. On 20 April, the Volpara released a business update on the fourth quarter, which also saw its share price rise.

Unfortunately, its gains didn’t hold that day, and the Volpara share price ended the session trading 4.2% lower than the previous close.

Commentary from management

Volpara CEO Dr Ralph Highnam commented on the results, saying:

Our achievements in [the 2021 financial year] are a powerful endorsement of what we stand for as a company and the strength and commitment of our industry to keep saving families from cancer, no matter what else is going on.

We look forward to continuing to accelerate out of COVID-19 in [the 2022 financial year].

Volpara share price snapshot

Currently, the Volpara share price is down 3% year to date, although it’s up 8% over the last 12 months.

The company has a market capitalisation of around $321 million, with approximately 251 million shares outstanding.

More reading

• 2 great ASX growth shares to buy
• Volpara (ASX:VHT) share price rising following Q4 business update
• 3 growing small cap ASX tech shares to watch
• 2 must-watch small cap ASX shares
• 4 exciting small cap ASX shares to watch

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends VOLPARA FPO NZ. The Motley Fool Australia has recommended VOLPARA FPO NZ. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Volpara (ASX:VHT) share price is up 6% today appeared first on The Motley Fool Australia.

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The IntelliHR Ltd (ASX: IHR) share price is on the move after the company announced a business update to the ASX. 

At the time of writing, the data analytics company’s shares are trading for 33 cents, up 16%.

What’s driving the IntelliHR share price?

Investors are fighting to get a hold of IntelliHR shares after the company reported strong growth across key metrics.

For the period ending 28 April (first 4 months of 2021), IntelliHR delivered an improved performance underpinned by its United Kingdom expansion.

Annual recurring revenue (ARR) acquisition reached a record, up 304% year-on-year (YoY) from H1 FY20. Contracted ARR also rose to $3.55 million. A significant jump on the $1.79 million from the prior corresponding period (pcp).

Contracted subscribers also surged to 35,080, reflecting an increase of 270% of YoY numbers (12,829 subscribers).

Average lead generation in Q3 FY21 to date lifted 100% with global expansion opening in new markets.

Additionally, IntelliHR highlighted its efforts to expand into the United Kingdom and European markets. In particular, the launch of its software platform. This has already rewarded the company with a significant new United Kingdom enterprise customer win.

The company noted that the conversion of TRU West Alliance enables it to partner with the leading global engineering group, ARUP. The contract will run for a 36-month period and support up to 1,000 designers during the project’s initial phase. Revenue generation for IntelliHR is expected to come between $280,000 and $511,000 for service in the next 12 months.

In addition, IntelliHR also revealed the other 2 enterprise conversions in H2 FY21. They were an innovative container processing business, Young Guns, and specialty baby goods retailer, Baby Bunting Group Ltd (ASX: BBN).

Commentary from the managing director

IntelliHR managing director, Rob Bromage touched on the company’s strategic direction, saying:

Following our North American market successes, we chose to accelerate our expansion into the UK market. This decision has already been rewarded with ARUP and the TRU West alliance choosing to partner with intelliHR through competitive tender.

Engineering Group ARUP represents a prestigious cornerstone UK/European customer that will be supported by a new instance of intelliHR’s platform in AWS’s EU region. With Enterprise Client successes in APAC, North America, and now the UK/Europe, intelliHR is clearly being recognised as an Enterprise HR and People Management platform capable of supporting global business needs.

The IntelliHR share price has accelerated to over 500% in the past 12 months. However, year-to-date performance is down 34%.

More reading

• Baby Bunting (ASX:BBN) share price: all-time highs and potential teething issues
• 3 ASX retail shares at record highs
• 2 quality ASX shares rated as top buys by brokers
• 4 exciting small cap ASX shares to watch
• Brokers think these 2 top ASX shares are buys in April 2021

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. 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 Straker Translations Ltd (ASX: STG) share price is rocketing higher today after the company released its quarterly activities report.

The Straker share price is up a hefty 13.55% at the time of writing, trading at $1.76 per share.

Straker is a cloud-enabled translation services provider, involved in both business and personal translation. Let’s see what’s driving its share price so much higher today.

Straker’s continued growth

Straker reported $9 million in unaudited revenue for its March quarter results, up 19% sequentially on the previous December quarter. Its FY21 revenue was up 31% on the previous year to $31.3 million, while its acquisition of translation service Lingotek has brought in $1.9 million in two months.

The company is attracting blue-chip clients, with Panasonic signing up to its subscription-as-a-service (SaaS) for Lingotek, and its strategic alliance with IBM is “driving a surge in translation and product development activity”, according to the report.

The company says its revenue slowed down seasonally over the northern hemisphere winter, exacerbated by various COVID-19 lockdowns, however by March was already rebounding and continues to grow.

Gross margins improved to 57.8%, operating cash inflow of $18,ooo was slightly down on the previous quarter, and Straker reported net outflow of cash of $313,000 for the quarter, with cash reserves of $7.175 million.

What did management say?

CEO Grant Straker said the company was progressing well and continued growth was expected.

After the intense activity of the third quarter, a period when we negotiated the IBM alliance and the Lingotek acquisition, we have turned our focus onto executing on the enormous opportunities that have emerged from these transformational agreements.

We are seeing a significant ramp up in content delivered to IBM since the alliance went live in January. March content volumes are 60% ahead of the content we delivered to IBM in February and we have seen no letup in this growth since the end of the quarter. We expect the positive revenue impact from the IBM alliance to become more apparent in the current and future quarters.

Straker share price snapshot

The Straker share price is up 4.7% this week, adding to monthly gains of 16%. It’s risen 95% higher over the past 12 months.

More reading

• Goldman Sachs has good news for ASX 200 copper shares
• McPherson’s (ASX:MCP) share price jumps 7% on takeover news
• Why do ASX dividend shares underperform the market?
• The Atomo (ASX:AT1) share price is soaring today. Here’s why
• Why the VRX Silica (ASX:VRX) share price is lifting today

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Straker Translations. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Straker (ASX:STG) share price is rocketing 13% today appeared first on The Motley Fool Australia.

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ASX 200 resource shares have largely outperformed the S&P/ASX 200 Index (ASX: XJO) itself since the global recovery took off mid-last year.

That’s particularly true for some of the leading ASX copper shares.

OZ Minerals Limited (ASX: OZL), for example, has seen its share price surge 178% over the past 12 months. And the Sandfire Resources Ltd (ASX: SFR) share price has gained 54%. The ASX 200, by comparison, is up 31% at that same time.

The question many investors are asking now is whether the leading ASX copper shares can continue to outperform in the year – and years – ahead.

And the answer, based on Goldman Sachs latest copper price forecasts, appears to be that they certainly might.

Blue skies ahead for the red metal?

Demand for copper, as you may know, has been growing strongly on several fronts.

First, copper is used in many construction projects, from wiring to plumbing and more. And as global governments and corporations turn to infrastructure and real estate projects to lift their post-pandemic economies, they need more copper to do so.

Second, copper is a key component in electric vehicles, including their wiring and batteries. As the number of EVs – along with home and municipal battery storage – take off, the industry will demand ever more copper. Which spells good news for the copper price, and the share prices of leading ASX 200 copper producers.

According to Goldman Sachs (quoted by the Australian Financial Review) the increased demand for copper (and many other commodities, including oil), is “a change which supply cannot match“.

Goldman’s Jeffrey Currie and colleagues wrote:

The commodity supply is near inelastic in the short run – you cannot dig another mine or grow another crop in a matter of months…

Precisely because commodities depend upon the level of demand, and only the level of demand exceeding the level of supply can create a physical scarcity premium in markets, can we be confident that sustained backwardation is showing us how commodity markets are becoming progressively tighter today.

Backwardation, if you’re wondering, is when the current price of copper (or any asset) is higher than its futures price.

As for its outlook for copper prices, Goldman forecasts the red metal will trade at US$11,000 per tonne inside of 12 months. That’s about 11% higher than the current US$9,884 per tonne.

And from there, Goldman sees at least 2 more years of price gains ahead for copper, forecasting a price of US$11,875 in 2022 and US$12,000 in 2023.

If Goldman is correct, that would put the 2023 copper price up more than 21% from today’s prices. Music to the ears of ASX 200 copper producers…and their shareholders.

ASX 200 listed OZ Minerals and Sandfire Resources snapshot

ASX 200 listed copper producer OZ Minerals has continued to outperform in 2021. Shares are up 1.3% in intraday trading today for a gain of 26.4% year-to-date. OZ Minerals has a market cap of $8.0 billion and pays an annual dividend yield of 1.0%, fully franked.

Sandfire Resources has also continued on its upwards trajectory this year. Shares are up 4.4% in intraday trading today and up 26.2% year-to-date. Sandfire Resources has a market cap of $1.2 billion and pays an annual dividend yield of 3.5%, fully franked.

More reading

• Why do ASX dividend shares underperform the market?
• ASX 200 up 0.3%: Woolworths and Fortescue lower on updates, Newcrest impresses
• Why ASX gold miner Regis Resources (ASX:RRL) share price is moving higher
• Why this top broker just upgraded the battered St Barbara (ASX:SBM) share price to “buy”
• 5 things to watch on the ASX 200 on Thursday

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 McPherson’s Ltd (ASX: MCP) share price is on the rise today after the company provided a number of updates on Thursday morning. At the time of writing, the Aussie health, wellness and beauty company’s shares are trading at $1.51 per share, up 6.71%. 

Let’s take a look at what the company announced.

Trading update

McPherson’s this morning provided an FY2021 trading update to the market. Today’s quantitative guidance comes after the beauty products supplier was unable to provide guidance due to “unpredictable and sporadic demand” from its exclusive Dr LeWinn’s China-based brand partner.

McPherson’s today announced a forecast $222 million decline in revenue. The Aussie supplier expects revenue of $200 million to $205 million for FY21 despite a 3% increase in domestic sales.

The big driver has been disappointing China distribution in late 2020. McPherson’s said sales via its exclusive China brand partner, Access Brand Management (ABM), in Q4 2020 were “well below expectations”.

The McPherson’s share price is surging today despite the company forecasting FY2021 underlying earnings per share (EPS) of 5.0 to 6.5 cents per share. That’s thanks to the weaker past sales and lower shipments to ABM expected in Q4 2021.

However, it’s not just today’s earnings downgrade that has been impacting the McPherson’s share price.

What else is driving the McPherson’s share price?

On 25 March 2021, McPherson’s received a Bidder’s Statement from Gallin Pty Ltd. That constituted an unconditional, on-market takeover offer to acquire all shares at $1.34 per share.

The McPherson’s share price had previously last closed at $1.41, and the board saw the Gallin offer as opportunistic thanks to the “abnormally low, short-term export sales of Dr LeWinn’s in FY2021”.

As a result, McPherson’s directors today unanimously reiterated that shareholders should reject the Gallin offer by taking no action. However, another offer has surfaced and appears to be boosting the McPherson’s share price today.

McPherson’s yesterday received a non-binding, indicative proposal from Arrotex Australia Group Pty Ltd (Arrotex). Arrotex is proposing to acquire all McPherson’s shares at $1.60 per share in an all-cash transaction.

That would be a 31% premium to the 24 March 2021 closing price of $1.22, prior to receiving the Gallin Offer. It’s also a 5.96% premium to the company’s current share price at the time of writing. The board is now working with Arrotex to put together an offer that would work for McPherson’s shareholders.

Foolish takeaway

It’s been a big morning for shareholders with the McPherson’s share price responding positively to today’s updates.

More reading

• McPherson’s (ASX:MCP) share price lifts on takeover developments

Motley Fool contributor Ken Hall 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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ASX dividend shares are popular in Australia. The S&P/ASX 200 Index (ASX: XJO) has long been known for its hefty dividend potential, and ASX blue chips that pay out dividends traditionally have a role in most retail investors’ portfolios.

But the evidence is starting to build up that many of the ASX shares that have the largest reputation for being the biggest dividend payers are not market-beating stocks. Let’s take a look at a couple of examples. Westpac Banking Corp (ASX: WBC) is one of ASX’s most popular shares as one of the big four banks. Before the coronavirus pandemic, Westpac shareholders were used to an annual fully franked dividend yield of between 5-8%.

Yet Westpac shares, at their current pricing, have literally gone nowhere for over a decade. You could have bought Westpac shares at the same price as is available at the time of writing, back in March of 2007. Between late May 2008 and today, Rio Tinto Limited (ASX: RIO) shares are up 3.75%. Not a great capital return for 23 years of waiting. Commonwealth Bank of Australia (ASX: CBA) shares were higher in 2015 than they are today. And investors who bought Woodside Petroleum Limited (ASX: WPL) shares back in June 2008 are still down around 60% on their money. And AGL Energy Limited (ASX: AGL) shares are today trading at a level we last saw in 2004.

All of these ASX shares are known as dividend heavyweights. And all have been mediocre long-term performers in terms of share price growth.

Do higher dividends equal lower returns?

Let’s take a look at two ASX exchange-traded funds (ETFs) to see this pattern in action. The Vanguard Australian Shares Index ETF (ASX: VAS) tracks the largest 300 companies on the ASX. It is a simple index fund, holding dividend payers and non-dividend payers alike, going only on market capitalisation.

In contrast, the Vanguard Australian Shares High Yield ETF (ASX: VHY) holds a smaller basket of shares, only holding companies “that have higher forecast dividends relative to other ASX-listed companies”. As you would expect, the VHY fund offers a far higher trailing dividend distribution yield at 3.57%, compared to the broader ASX 300 ETF’s 2.61%.

However, that higher yield does not translate into better overall returns. The ASX 300 ETF has returned an average of 10.25% per annum over the past 5 years. The dividend-focused VHY ETF has returned an average of only 8.99% per annum over the same period.

So why do many ASX dividend shares underperform? Well, that’s a complicated question. But it might have something to do with the fact that paying out dividends weakens a business. A business that shovels most of its earnings out the door has less left to invest in itself, to grow and expand. That might be why some of the companies mentioned above have had their share prices stuck in the proverbial mud for more than a decade.

So if you love a good dividend (and who doesn’t?), keep in mind that you might be sacrificing your overall return if you chase the highest yields possible.

More reading

• ASX 200 up 0.3%: Woolworths and Fortescue lower on updates, Newcrest impresses
• Why ASX gold miner Regis Resources (ASX:RRL) share price is moving higher
• Why this top broker just upgraded the battered St Barbara (ASX:SBM) share price to “buy”
• What to expect from the Westpac (ASX:WBC) half year result
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen owns shares of Vanguard Australian Shares High Yield Etf. 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 Atomo Diagnostics Ltd (ASX: AT1) share price is up today after news the company’s Mylan HIV self-test will be expanded in low and middle-income countries. At the time of writing, Atomo shares are trading for 22 cents apiece, 4.88% higher than yesterday’s closing price. 

Let’s take a closer look at the news driving the Atomo share price today.

A step towards health equality

Atomo announced today that its distributer Viatris Inc has made an agreement with global health agency, Unitaid.

The multi-year partnership will see the cost of the Mylan HIV self-test lowered by 50%. Unitaid announced the test will become available for less than US$2 in 135 eligible countries.

The agency said the agreement was a key factor in meeting the global goal of having 90% of people aware of their HIV status. Currently, an estimated 8 million people do not know their HIV status.

Atomo designs and manufactures the HIV self-test. Unlike standard, multi-component HIV tests, it’s a handheld device that Atomo says offers “unmatched usability”. It works to detect the presence of HIV antibodies in a fingertip blood sample.

The test is prequalified by the World Health Organisation (WHO). WHO has estimated the global HIV self-testing market will increase by around 163% in coming years, demanding 29 million tests by 2025.

Commentary from management

Atomo’s co-founder and managing director John Kelly said the partnership signaled a step-up in demand for the HIV self-tests: 

This agreement is not just a significant and important moment in the growth of Atomo, it’s also further confirmation of the versatility and performance of our unique all-in-one diagnostic test platforms and drives lower costs across the business.

Not only have they proven themselves to be ideal for novel test applications like COVID-19 and anti-microbial resistance, but they are also suitable for deployment as part of mass-screening programs in decentralised settings.

Atomo share price snapshot

The Atomo share price needs all the good news it can get today – it’s had a poor run on the ASX lately.

Currently, the Atomo share price is down 30% year to date and has fallen 55% over the last 12 months.

The company has a market capitalisation of around $83 million, with approximately 568 million shares outstanding.

More reading

• Why is the Atomo (ASX:AT1) share price trending downwards?

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 VRX Silica Ltd (ASX: VRX) share price is on the move, up 3.51% to 30 cents in late morning trade. This movement comes as the ASX resource explorer released its latest quarterly activity report today.

Below, we take a closer look at the announcement. 

What did VRX Silica report for the quarter?

VRX Silica’s shares are moving higher today after the company updated the market on its drilling campaign at its Arrowsmith North Silica Sand Project in Western Australia.

During the March quarter, VRX said it completed a 130-hole grade control drill program. This occurred at the project over a period of 10 days. Furthermore, VRX forecasts that the grade control area contains roughly 10.2 million tonnes of probable ore reserve.

VRX does not expect the drill program will change its forecast tonnage. However, the company does believe it will lead to an upgrade in the area drilled to a measured resource and proven reserve. The program will also increase the company’s general geological knowledge across the drilled area.

Assay results for the drill program are expected in late May.

According to the release, the recently completed program “is another key pre-production activity being undertaken in preparation for the commencement of mining”. VRX said the area being grade control drilled is where it plans to mine for the first 6—10 years.

The company added that the drilling has provided it with new commercial samples. In particular, these samples will be for its potential offtake partners, stating demand for its silica sand is ramping up:

Sources of supply of quality silica sand throughout the Asian region are shrinking at a rapid rate, and this has led to tremendous interest for VRX’s silica sand from potential customers who are acutely aware of the supply problem.

VRX also provided an update on its progressive mining and rehabilitation methods. These methods are designed to minimise the environmental impact of its activities.

VRX Silica share price snapshot

Over the past 12 months, the VRX Silica share price has rocketed 228% higher. That handily beats the 34% gain posted by the All Ordinaries Index (ASX: XAO).

So far, 2021 has been more difficult for the VRX share price, with shares down 26% year-to-date.

More reading

• The Atomo (ASX:AT1) share price is soaring today. Here’s why
• Why Coles, Nickel Mines, Nitro, & Regis Resources are storming higher
• Novatti (ASX:NOV) share price rockets 27% on Afterpay deal
• The Credit Clear (ASX:CCR) share price lower on third quarter update
• Why is the BARD1 (ASX:BD1) share price jumping 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 Why the VRX Silica (ASX:VRX) share price is lifting today appeared first on The Motley Fool Australia.

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