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EMVision Medical Devices Ltd (ASX: EMV) shares were on the rise today following news of two significant technology and product development breakthroughs from the company.

By the market’s close, the EMVision share price was trading at $3.16, up 4.29% from yesterday’s closing price of $3.03.

Let’s take a closer look at the latest news from EMVision.

What’s driving the EMVision share price?

EMVision shares responded positively today after the company announced it has developed two new technologies. These will work alongside its prototype portable electromagnetic (EM) imaging device, currently being developed as a brain scanner.

The EM imaging device differs from other imaging technology currently available as it releases both electric and magnetic fields from its antenna which interact with brain tissue to produce an image. It has the potential to provide clinicians with diagnostic information in a non-invasive, radiation-free manner. 

EMVision states its two latest techniques have the potential to improve stroke diagnosis and care.

Once developed, the company hopes the two breakthroughs announced today can be accessed through its EM imaging device.

Dielectric mapping

The first of these breakthroughs is dielectric mapping. Dielectric mapping may be able to provide clinicians with anatomical detail to help them assess the impact of a stroke.

The company hopes dielectric mapping technology can be used as an alternative to MRI or CT imaging in the future. It states this could be particularly beneficial in situations when traditional imaging techniques are unable to be used, such as in ambulances or in a patient’s home.

According to EMVision, its dielectric maps have been produced from data acquired by the company’s prototype brain scanner.

Pulsatility

The second breakthrough announced by EMVision today is pulsatility. The company states pulsatility could potentially assist in the diagnosis of large vessel occlusion (LVO) for ischaemic strokes. LVO strokes are caused by a blockage to one of the major arteries in the brain. Early diagnosis and treatment of LVO strokes can have a significant impact on a patient’s outcome. 

EMVision states that pulsatility technology could help reduce treatment delays and, therefore, the occurrence of resulting disability in patients. The technology could also minimise healthcare, insurer, and societal costs.

According to EMVision , since the technology has the potential to measure blood flow through the brain, it could help identify the degree of a blockage at its earliest stages. It could also help to localise any salvageable tissue and begin treatments to restore blood flow.

Expert commentary

Australian Stroke Alliance co-chair Professor Stephen Davis commented in the company’s release, saying:

We hope that further advances in this technology will allow treatment of patients in rural and remote locations in Australia who would otherwise remain untreated.

Based on the very promising data from EMVision, we are engaged in preparing for multi-site clinical trials and it is hoped this will lead to future widespread application of this technology.

Management commentary

EMVision CEO Dr Ron Weinberger commented on the company’s breakthroughs, stating:

The dielectric maps will have a dramatic impact on the interpretation of data from our algorithms. For the first time using EM imaging, clinicians will be able to make good approximations to the anatomical region at which stroke occurs and will enable a visualisation of the EM image for clinicians that is familiar to them and what they have been looking at for decades [using] CT and MRI…

 Pulsatility is a complimentary technique that alongside our existing diagnostic algorithms, has the potential to improve diagnosis and treatment and save more lives.

EMVision share price snapshot

Today’s news comes at a good time for EMVision shares as they’ve had a lacklustre performance on the ASX so far this year.

Following today’s boost, the EMVision share price is now up by 1.94% year to date. The company’s shares are, however, up by 295% over the last 12 months.

EMVision has a market capitalisation of around $214 million, with approximately 70 million shares outstanding.

More reading

• Why is the EMvision (ASX:EMV) share price surging 12% this week?

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 EMvision Medical Devices Limited. 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 Rand Mining Ltd (ASX: RND) share price is falling today after the company released its EKJV exploration report for the quarter ended 31 March 2021.

At the time of writing, the Rand Mining share price is down 2.58% to $1.51 cents per share.

Rand Mining’s focus is gold mineralisation, and the exploration, development and production activities at East Kundana Joint Venture tenements. Kundana is an abandoned former mining town in Western Australia, in the Esperance Goldfield region. Let’s take a look at its most recent results.

Rand Mining’s recent Kundana results

The first thing you’ll realise is Rand Mining has a certain inventive sense of adventure when naming its exploration and drilling program prospects.

The first set of results the company released covers its Star Trek, Rubicon and Hera areas, and the second covers its Hornet-Pegasus-Falcon exploration regions. The company’s update also provided positive reports around its Pode drilling area.

Rand Mining discovered gold mineralisation from 1.6 g/t AU at 234 metres deep to 9.7 g/t AU from 162 to 168 metres deep at Hornet. Assays also revealed mineralisation from 2.5 g/t AU at 52 metres deep to 8.6 g/t AU at 46 metres deep in Star Trek.

Rand Mining said the company’s drilling at 10 targets at its Pode structure “returned intercept results with significant gold mineralisation during the quarter.”

Most of the company’s drilling holes in its Pode area intercepted two or more stacked lode structures, which are ore deposits within the rock layers that often contain rich mineral deposits, in this case gold.

Rand Mining also noted its plans for the future will focus on the company’s Pode, Hera, Rubicon and Star Trek.

Exploration drilling during the next quarter will continue to test the southern extents of the Pode and Hera structures following on from the recent results. Further exploration drilling targeting the Rubicon hanging wall and Startrek prospect will recommence towards the end of the quarter.

Rand Mining share price snapshot

The Rand Mining share price has been tumbling over the past 12 months and is down across every time span metric: 6% this past week, 1.9% the past month, 16% in 2021 so far and 17% over the past year.

More reading

• 2 excellent ASX growth shares tipped as buys
• The EMVision (ASX:EMV) share price jumped today. Here’s why
• Untying the CEO pay knot
• The Rumble Resources (ASX:RTR) share price is surging 26% today
• What’s triggered the 7% Kogan (ASX:KGN) share price surge?

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AMP’s Boe Pahari is set to leave AMP with a payout reported to be up to $50m.

Outgoing JB HiFi boss Richard Murray is set to join Solomon Lew’s Premier Investments for a base salary of $2 million, plus bonuses, plus shares. Total: a lot.

And car yard king Eagers Automotive was reported in today’s AFR as having taken $134 million in JobKeeper payments during the last calendar year.

These are all some very serious numbers.

And they beg the question of just how much is too much when it comes to both executive pay and government support for struggling businesses.

The numbers themselves are massive.

But — and stick with me here — we shouldn’t be looking at large numbers and arbitrarily deciding they’re too high.

See, what most commentary (and pretty much all commentary on social media), rarely asks, and almost never answers, is “what would have happened, otherwise”?

It’s what the boffins call the ‘counterfactual’.

Without meaning to deliberately stir up another hornet’s nest, it’’s the concept behind the vaccination debate.

You can’t just say ‘there were X number of side effects’ and leave it at that. After all, no one would accept side effects if there was no benefit.

It’s that benefit — the negative outcomes that, because they were avoided, will never be reported — that we need to take into account.

And so back to the (slightly) safer ground of executive remuneration (and corporate welfare).

I’ve written before on the latter, so I won’t go into it in much more detail other than to reiterate my main point: we can say ‘it was too much’, but we can never know how many jobs it saved. Maybe none. Maybe 5. Or maybe three-quarters of the company’s entire workforce.

JobKeeper was paid to the companies, but it was on the condition that they kept the staff employed — a decision that might have been different without the payment.

But let’s turn to executive pay.

There are two forces at work here. And they (unfortunately) intersect:

First, are the company specific decisions.

And then, there are the industry or economy-wide ones.

And they don’t so much intersect as become self-reinforcing. 

Which is where the problems start.

See, the company question is ‘Will we get enough value to offset the cost of said executive?’

But the broader question is ‘What is the going rate for said executives… and how much do we have to pay?’

Which is where the self-reinforcing bit comes in!

Jane Smith got $1m for her CEO gig, so John Jones asks for $1.1m. When Jane goes for her next CEO role, she wants $1.2m, and that becomes the new reference point for CEOs.

The company looking for a new CEO sees those numbers and has to offer $1.3m to lure John away from his current position.

And up and up it goes.

I mean, a company could punt on paying $500,000 for some untried and untested CEO, but, for the board involved, why take the risk?

If the greenhorn fails, they’ll cop the criticism. And shareholders will bear the financial pain.

Far easier — and arguably better — to pay up.

But that, of course, only adds fuel to the fire.

Clearly, Premier’s chair, Solomon Lew, thinks Murray is worth paying up for.

Given his track record at JB HiFi, that’s hard to argue. And if Murray truly is that good, it’ll be money well spent.

The same could be argued of AMP’s Pahari.

While the company continues to circle the drain, desperately trying to find a way back to growth, the funds Pahari ran — and the results they delivered — were a rare bright spot for AMP.

Without those bright spots, AMP — and its shareholders — would be in an even worse position than they are now.

So, what do you do?

Yes, it sticks in the craw to pay one bloke 50 big ones, while shareholders are losing money.

But if the alternative was to have not offered Pahari the money, see him leave, and have AMP’s results look even sicker, and its share price even lower?

The choice might be between the devil and the deep blue sea… but you still have to make that choice.

Maybe Pahari’s contract was too generous. Maybe they could have offered him half, and he might have stayed and performed just as well.

But maybe not.

I hope you’re getting the sense that these aren’t easy decisions.

They have very real consequences.

“That’s too much” is an easy view to hold.

In isolation, it’s very, very hard to disagree with, too!

But when the choice is between ‘more pay’ and ‘worse performance’ which do you choose?

I’m happy to offer to work as CEO at any ASX 50 company that wants to give me $500,000 a year and a 5 year contract.

(Sorry, boss!)

But would they hire me?

Should they?

The answer, on both counts, is ‘no’.

I’d do my best, of course.

I actually reckon I’d do a decent job in a few industries I know most about.

But I don’t think a board would be smart to take the risk.

And therein lies the rub.

Logic, reputational risk, greed and shareholder expectations combine to push wages (and bonuses ever higher).

The best we can reasonably ask is that the incentives are set intelligently, based on factors that are truly in that executive’s control.

And that the criteria being set are sensible, stretching, and — most importantly — in shareholders’ interest.

(You’d be surprised how many CEOs are incentivised to ‘grow’, regardless of the risks taken or the impact on the stability of the company balance sheet, for example).

Bottom line? Our CEOs and senior executives are paid too much.

But in a competitive environment, where CEOs know how much the other guy is being paid, we’re stuck with it.

To mangle an old investing maxim, “Price is what you pay. Value is what you need to make sure you get”.

More reading

• The Rumble Resources (ASX:RTR) share price is surging 26% today
• What’s triggered the 7% Kogan (ASX:KGN) share price surge?
• The RMA Global (ASX:RMY) share price is rebounding today. Here’s why
• ACCC sends a warning shot at Apple and Google app stores
• 2 ASX dividend shares with big yields

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Rumble Resources Ltd (ASX: RTR) shares are soaring again today after news from the company of a $40 million placement.

The Rumble Resources share price is up 26.3% at the time of writing, trading at 70 cents apiece.

Today’s movement has left the Rumble Resources share price with an incredible 531% gain this month alone.

Let’s take a closer look at the placement announced by the mining company this morning.

$40 million placement

Rumble Resources broke the news this morning that it will conduct a placement to institutional and significant sophisticated investors. It hopes to raise $40.2 million before costs.

The company will issue 80.4 million shares within the placement, offered at 50 cents each. This is significant because, before this month, the company’s highest-ever closing price was back in 2012 when it closed for 27 cents.

Rumble said the proceeds would fund an accelerated exploration program at its Earaheedy Project in Western Australia.

The Earaheedy Project has driven the Rumble Resources share price lately after the company released assay results of 2 RC drill holes at its Chinook Prospect within the project.

Those assay results confirmed a major zinc-lead discovery, with the Chinook Prospect found to house consistent grades of 4% to 5% zinc and lead.

Since then, the Ramble Resources share price has been rocketing upwards and today’s news suggests that some big investors believe it will continue to do so.

Commentary from management

Rumble Resources’ managing director Shane Sikora said the company was happy to welcome new institutional and well-known investors onboard, saying:

We see the strong support from the placement as vindication of the company’s pipeline of projects strategy, with a number of years of systematically advancing a number of exciting projects which led to the major discovery at the Earaheedy Project.

Rumble Resources share price snapshot

It goes without saying, this year has been a good one for the Rumble Resources share price on the ASX.

Currently, it’s up 479% year-to-date and has lifted 1,058% over the last 12 months.

The company has a market capitalisation of around $292 million, with approximately 532 million shares outstanding.

More reading

• The Rumble Resources (ASX:RTR) share price is up 75% in 3 days
• Why the Zenith (ASX:ZNC) share price shot up 66% today
• Why the Rumble Resources (ASX:RTR) share price is rocketing 90% today
• Why the Rumble Resources (ASX:RTR) share price is surging 28% 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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Kogan.com Ltd (ASX: KGN) is one of those ASX 300 shares you just can’t take your eyes off. Today was no exception as the Kogan share price rocketed 7.5% higher after a response to an ASX query this morning.

What’s driving the Kogan share price higher?

Kogan responded to some of the market operator’s queries about its third quarter update. The Kogan share price plummeted 13% last Friday following the update as investors were unimpressed by the latest sales figures.

Kogan reported gross sales up 47% and revenue up more than 65% for the March quarter. Gross profit was up more than 54% but adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) slumped more than 24% lower.

However, Kogan was issued a please explain by the ASX Ltd (ASX: ASX) limited for what it saw as vague statements in the report. Full details of those queries and responses can be found in this earlier Fool report here.

Kogan clarified some of the measures used in calculating these headline figures and adjustments made to EBITDA. Kogan’s Exclusive Brands revenue jumped 63.9% for the quarter to $88 million while Third-Party Brands revenue was up 13.6% to $60.1 million.

Clearly, investors were happier with today’s update than the initial figures. The Kogan share price has been climbing higher since the open and is up 7.4% heading into the close.

It may not be just the quarterly results helping push the Kogan share price higher. The big news in the ASX retail world was that the JB Hi-Fi Limited (ASX: JBH) CEO has been poached.

CEO Richard Murray will depart the electronics retailer to become CEO of the Solomon Lew-led Premier Investments Limited (ASX: PMV). Mr Murray’s reputation in the market was reflected in the respective share price moves today.

The JB Hi-Fi share price fell 4% on his departure news while Premier shares gained 2%. The appointment sees the respected CEO leave one of Kogan’s major rivals. Investors appeared even happier to bid up the Kogan share price this afternoon following the news.

More reading

• Here’s why the JB Hi-Fi (ASX:JBH) share price is tumbling lower today
• Why JB Hi-Fi, Link, Ramelius, & St Barbara shares are tumbling lower
• Why Airtasker, Appen, Downer, & Kogan shares are charging higher
• ASX 200 up 0.5%: Coles Q3 update, Westpac settles class action, JB Hi-Fi loses its CEO
• Kogan (ASX:KGN) share price higher following ASX query

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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RMA Global Ltd (ASX: RMY) share price has regained some ground from yesterday’s losses after the company released another market update today. This time, its investor presentation at the Bell Potter Decoded conference.

The RMA Global share price is up 1.9% to 26.5 cents per share in late afternoon trading.

RMA is in the real estate app platform market, providing extensive data on residential property sale results for real estate agents and agencies, and reviews of agent performance from vendors and buyers of residential real estate.

RMA Global’s reflected approach during COVID-19

The company used the conference to bring investors up to date on how the company tackled growth challenges throughout the COVID-19 pandemic.

Its presentation outlined how it stopped new feature development throughout the pandemic and instead launched mortgage broking as a new adjacency offering. The company says it now has 80% of Australian real estate agents using its platform and can provide users with all Australian real estate listings.

Its New Zealand base is lower due to fewer listings and the country’s smaller population, but RMA still boasts 110,000 agents and a similar number of property listings.

The company now aims to provide a premium tier for agents to self-advertise on the platform, as it seeks to create a competitive environment among app users targeting potential sellers. The platform already allows sellers to rate their real estate agents, one of the app’s key selling points for regular users. 

It’s also looking at social media integrations. RMA said that the company actually grew throughout the COVID-19 pandemic, which may have been boosted by low interest rates and a booming housing market across Australia.

RMA Global share price snapshot

The RMA Global share price has had a bumpy ride since it released its quarterly activities report on Monday, peaking at 28 cents before falling 7% yesterday, then rising to its current price of 26.5 cents.

More reading

• Why is the RMA Global (ASX:RMY) share price rising today?

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 Australian Competition and Consumer Commission (ACCC) has sent a scathing warning shot at app store providers Apple Inc (NASDAQ: APPL) and Google’s parent, Alphabet Inc (NASDAQ: GOOGL) today.

App marketplaces were the focus of the competition watchdog’s second Digital Platform Services inquiry interim report. The findings of which were handed out today.

App store duopoly  

The ACCC dug into the competition and consumer concerns surrounding the two key app marketplaces used in Australia: Apple’s App store and Google’s Google Play store. As many smartphone owners would know, these two app marketplaces are the go-to when it comes to downloading an app on your mobile phone in Australia.  

Astoundingly, between the two companies, they account for close to 100% of the global market for mobile operating systems (OS). Google’s Android OS holds roughly 73%, while Apple’s iOS retains the other 27%.

Therefore, with mobile devices becoming integral to our daily lives, it’s crucial to ensure fair competition exists. ACCC Chair Rod Sims’ comments portrayed this, stating:

Apple and Google’s stores are the gateways between consumers and app developers, and it’s true that they provide considerable benefits to both groups. But there are significant issues with how this market is operating.

Some of the issues identified in the report included:

• Google and Apple’s ownership of the marketplaces gives them the ability to promote their own apps over others.

• Control over the terms that their competitors must comply with to gain access to stores

• Restrictions imposed by Apple and Google means developers have no choice but to use their payment systems for any in-app purchases.

The criticisms didn’t end there either. Rod Sims also stated that Apple and Google could do more to remove malicious apps and improve dispute resolution for consumers.

Apple and Google’s to-do list

Following the findings, the ACCC curated a list of potential measures for the two companies to enact. Some of these are listed below, with all the items listed on page 16 of the report.

• To address inadequate payment option information and limitations on developers
• To increase transparency and address the risk of self-preferencing in-app marketplace discoverability and display
• Provide an option for consumers to rate and review first-party apps.

Making sure it’s not swept under the rug, the ACCC will revisit the issues during its five-year digital services inquiry. At that time, the watchdog will evaluate whether Apple and Google have made good on the findings.

More reading

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• Isn the right time to buy Spotify?
• Apple takes aim at Spotify’s podcast ambitions
• Apple introduces slate of updated and new products
• Cathie Wood’s ARK Invest only owns 4 Dow stocks, and they aren’t what you think

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Mitchell Lawler owns shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares) and Apple and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares) and Apple. 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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Are you looking for some ASX dividend shares to bolster your income portfolio? Then look no further!

Listed below are two ASX shares that have been tipped to provide their shareholders with generous yields in FY 2021 and FY 2022. Here’s what you need to know about them:

Aventus Group (ASX: AVN)

The first dividend share to look at is Aventus. It is Australia’s largest fully integrated owner, manager, and developer of large format retail centres.

Aventus has been on form over the last 12 months thanks to the quality of its tenancies, the popularity of its centres, and its exposure to everyday needs and national retailers.

In fact, unlike most retail landlords, Aventus has been able to collect rent largely as normal. This led to Aventus reporting both revenue and profit growth during the first half of FY 2021. It also saw the value of its properties increase.

One broker that is particularly positive on the company is Goldman Sachs. It currently has a buy rating and $3.04 price target on its shares. It likes the company due to its everyday needs exposure and its growth opportunities.

Goldman is forecasting a ~16.6 cents per share distribution this year and ~18.5 cents per share next year. Based on the current Aventus share price, this implies 5.6% and 6.2% yields.

Fortescue Metals Group Limited (ASX: FMG)

Another ASX dividend share to consider is Fortescue. Like Aventus, Fortescue has also been a positive performer over the last 12 months.

This has been driven by its low costs, strong production, record shipments, and the sky high iron ore price. In respect to the latter, during the first half, Fortescue achieved an average realised price of US$114 per dry metric tonne for its iron ore. This was up a massive 42.5% on the prior corresponding period.

Pleasingly, since then, the iron ore price has continued to surge higher. In fact, this week the spot iron ore price is fetching a record high of ~US$195 a tonne. This puts the company in a great position to have an even stronger second half, even with its lower grade iron ore.

Ord Minnett is positive on the company. It recently put a buy rating and $29.00 price target on its shares. The broker is also forecasting dividends of $3.50 per share and $3.07 per share over the next two years.

Based on the latest Fortescue share price of $22.60, this represents massive 15.5% and 13.6% yields, respectively.

More reading

• Is it dangerous investing in ASX resources shares at record highs?
• Record high iron ore price puts these ASX shares in the spotlight this morning
• ASX 200 falls, BHP rises, Afterpay sinks
• A dividend upside to drive the Fortescue (ASX:FMG) share price?
• 2 ASX dividend shares with very generous yields

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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 Gold Road Resources Ltd (ASX: GOR) share price has been hammered on Wednesday. This comes as ASX gold shares sink lower. Additionally, an insider is also selling down their shareholding. 

What’s driving the Gold Road share price lower?

The only update from the Aussie gold miner was a Change of Director’s Interest Notice. The update informed the market that the Netscher Family Superannuation Fund had sold 320,000 shares at $1.29 per share.

Mr Timothy Netscher, Gold Road’s Chairman, is the sole beneficiary of the fund. The Gold Road share price has taken a tumble today and was trading down 5% at the time of writing.

The 320,000 on-market share sale means the super fund will retain a 463,000 stake in the group. However, it may not be just the insider sale that’s causing the Gold Road share price to tumble today.

Gold Road and St Barbara Ltd (ASX: SBM) are leading the ASX gold shares lower today in a tough day for investors. The St Barbara share price is down 8.0% after hitting a new 52-week low earlier in the session.

That came on the back of a production fall in the gold miner’s latest quarterly numbers. In fact, production fell and costs increased 8.7% for the quarter in bad news for shareholders. Gold sales fell 28.3% to 71,329 ounces versus the December quarter. St Barbara recorded an average realised gold price up 5.7% to $2,247 per ounce in a silver lining for shareholders.

Gold investors may be looking at the St Barbara result as indicative of broader market conditions.

The Gold Road share price remains under pressure in 2021 and is down 11.8% to $1.24 per share. That leaves the company’s market capitalisation at $1.1 billion with shares trading at 13.5 times earnings.

Today’s weak St Barbara result and insider on-market share sale have pushed the Gold Road share price lower in a disappointing trading day for the ASX gold miner.

More reading

• Why JB Hi-Fi, Link, Ramelius, & St Barbara shares are tumbling lower
• St Barbara (ASX:SBM) share price craters 8% on production fall
• What’s with the St Barbara (ASX:SBM) share price today?
• 5 things to watch on the ASX 200 on Friday
• ASX 200 shares thrown in the bargain bin: Here’s 3 ideas

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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The Stanmore Coal Limited (ASX: SMR) share price is jumping significantly today after the company released its Chairman’s AGM Address to Shareholders.

The Stanmore share price is up 5.2% to 70 cents per share.

Stanmore’s focus is the exploration, development, production and sale of metallurgical and thermal coal in Queensland, Australia. Let’s see what’s driving its share price rebound today.

Stanmore Chair’s AGM address

Companies are moving away from thermal coal and fossil fuels in record numbers towards renewable energy sources and China slapped a ban on Australian coal exports several months ago, which is partly to blame for why Stanmore has been hit hard by depressed coal prices.

The company’s revenue from operations for the six month period ending 31 December 2020 totalled $136.3 million. This resulted in a gross loss of $6.6 million, considerably lower than the company’s $97.0 million profit recorded in FY20.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) reduced to a $13.4 million loss, against the FY20 result of a positive $87.5 million.

Stanmore Chair Dwi Suseno said the company were hoping to diversify into the renewable energy resources market and change the company’s name accordingly.

The directors are recommending a change of name for the Company to Stanmore Resources. The Board believes that the name of the Company should be reflective of our aim to continue developing and strengthening our core metallurgical coal business, but also exploring other resource diversification opportunities, including but not limited to the renewable energy space.

In that vein a company called Stanmore Green has been created. The vision for this company is to leverage our assets and execution capabilities to explore and pursue diversification opportunities in the renewable energy space offering synergistic and value add to our existing and future operations.

Stanmore share price snapshot

Today’s gains are rare respite for Stanmore investors. The Stanmore share price has been falling dramatically over the last 12 months, down 30% and 53% against the broader resources sector.

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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.

The post Stanmore Coal (ASX:SMR) share price surges after signalling name change, renewables focus appeared first on The Motley Fool Australia.

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