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Neometals Ltd (ASX: NMT) shares are edging lower today after the company announced it plans to list on the London Stock Exchange (LSE). At the time of writing, the Neometals share price is trading at 49.5 cents – down 1.0%. By comparison, the All Ordinaries Index (ASX: XAO) is down by just 0.1%.

Let’s take a closer look at today’s news from the lithium exploration company.

What’s affecting the Neometals share price?

The Neometals share price is in the red today after the company advised in a statement to the ASX it is seeking to list on the LSE in addition to the ASX. The dual listing is being sought  “as part of its strategy to capitalise on substantial UK and European investor interest in the Company’s role supporting sustainable circular battery value chains.”

The company says it expects to be admitted onto the LSE in the first half of FY22. 

Neometals managing director, Chris Reed, commented:

Neometals’ projects are advancing towards development decisions, so the time is right to maximise liquidity and better access the huge pools of European investment capital. Admission to the LSE extends the trading window available to investors and we look forward to leveraging off Cenkos’ strong track record in supporting ESG-focused companies. We also look forward to participating in LSE sustainability initiatives like the ‘Green Economy Mark’, which recognises companies deriving 50% or more of their revenues from environmental solutions.

Neometals would not be the first Aussie company or even the first minerals exploration company to be dual listed. Rio Tinto Limited (ASX: RIO) is also dual-listed on the ASX and LSE. Lithium competitor Piedmont Lithium Ltd (ASX: PLL) is dual-listed on the Nasdaq, as is Mesoblast Limited (ASX: MSB).

Only recently, Afterpay Ltd (ASX: APT) said it was considering a dual listing in the United States. Meanwhile, Zip Co Ltd (ASX: Z1P) shares surged by around 20% in early February amid rumours it was exploring a potential listing in the US. Judging by today’s Neometals share price action, however, investors do not hold the same enthusiasm over a possible dual listing for the lithium explorer. 

Company background

While initially focused on lithium, Neometals has expanded its remit over recent years. The company says it has three main focus areas:

1. Recycling and resource recovery – The company extracts lithium and vanadium through recycling programs. Lithium is recovered from ion batteries while vanadium is salvaged from steel manufacturing by-products.
2. Lithium refinery project – With a plant in India, Neometals wants to refine its lithium to supply “the battery cathode industry”.
3. Barrambie titanium and vanadium project – According to the company, this project encompasses one of the largest titanium-vanadium deposits in the world. Neometals expects to develop the site from 2022.

Neometals share price snapshot

Over the past 12 months, the Neometals share price has increased by around 209% Only last week, the company hit a 52-week high of 54 cents per share.

Neometals has a market capitalisation of $264.5 million.

More reading

• What’s happening with the Neometals (ASX:NMT) share price?
• Why the Neometals (ASX:NMT) share price has surged to a 52-week high
• Why the Neometals (ASX:NMT) share price is shooting 8% higher
• ASX lithium shares are surging across the board. Here’s why

Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The National Australia Bank Ltd (ASX: NAB) share price has been a strong performer in recent times. The banking giant is on the mends as the Australian economy gets back on track from the impacts of COVID-19.

At the time of writing, the financial services company’s shares are swapping hands for $26.45, up 0.23% for the day so far.

On the road to recovery

Investors appear pleased with NAB’s handling of the sudden and sharp shockwave of the pandemic.

In the company’s most recent quarterly update (Q1), NAB advised its financial position remains strong. The bank noted that economic trends were improving, with it recording earnings of $1.65 billion. This was 47% higher than the FY20 second-half quarterly average, primarily driven by low credit impairment charges.

In addition, NAB stated that its underlying performance was sound in the current competitive, low-interest-rate environment. The business saw reductions in the deferral of repayments as business conditions improved. Cash earnings growth lifted by 1% when compared against the prior corresponding period.

With this positive news, NAB shares have come a long way from their COVID-19 lows of around $15 seen on 23 March 2020.

NAB is scheduled to report its FY21 half-year results to the ASX on 6 May.

Broker update

After reporting its quarterly results, a number of brokers rated the company with similar price points. Swiss investment firm UBS raised its price target for NAB by 8% to $27.00. Morgan Stanley followed suit to also increase its rating by 3.3% to $25.30. The most recent broker note, however, came from Macquarie late last month, which has initiated a price of $26.75 for the company.

NAB share price summary

The NAB share price has accelerated over the past year — up by almost 70% — particularly since the start of November. The rise in the company’s shares arguably reflects Australia’s success in managing the economic impacts of the pandemic.

On valuation grounds, NAB commands a market capitalisation of around $87.2 billion, with almost 3.3 billion shares on issue.

More reading

• NAB report finds the Australian economy on track to reach pre-COVID level
• Westpac, ANZ, CBA share prices dip after class action for ‘junk’ insurance
• ANZ Bank’s (ASX:ANZ) profit result could get an extra boost: Macquarie
• NAB (ASX:NAB) chair signals ‘rational’ responses to curb booming housing market
• The Westpac (ASX:WBC) share price is the best performing of the big four banks in 2021

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a small daily decline. In afternoon trade, the benchmark index is down 0.2% to 7,046.2 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking lower:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price has fallen 3.5% to $7.37. This infant formula company’s shares have come under pressure this week after being downgraded by analysts at Morgans. The broker has suggested that an inventory build up and discounting could lead to a2 Milk falling short of its downgraded guidance in FY 2021.

Centaurus Metals Limited (ASX: CTM)

The Centaurus Metals share price is down 3.5% to 67.5 cents. This is despite the company announcing that it has secured possession of a further key piece of land that covers its 100%‐owned Jaguar Nickel Sulphide Project in northern Brazil. According to the release, the latest agreement covers an area of approximately 480 hectares and provides further security of land possession for the long‐term benefit of the Project. Weakness in the nickel price overnight could be weighing on its shares.

Kogan.com Ltd (ASX: KGN)

The Kogan share price has crashed 14% to $10.70. Investors have been selling the ecommerce company’s shares following the release of a disappointing third quarter update. While Kogan’s top line growth was strong, a jump in operating costs led to its operating earnings declining 24% compared to the prior corresponding period.

Youfoodz Holdings Ltd (ASX: YFZ)

The Youfoodz share price has sunk 14% to 60.5 cents. This morning the ready-made meals company released its third quarter update and revealed a 23.6% increase in prepared meals to a total of 4.9 million. This underpinned an 18.2% increase in gross revenues to $35.3 million. However, due to weak demand in the B2B market, Youfoodz advised that it would fall short of its revenue and EBITDA guidance.

More reading

• The Youfoodz (ASX:YFZ) share price is down 15% today. Here’s why
• Kogan (ASX:KGN) share price crashes 13% on Q3 update
• ASX 200 down 0.1%: Kogan crashes, AMP’s demerger plans, Telstra strengthens 5G network
• Brokers name 3 ASX shares to buy now
• Why has the Kogan (ASX:KGN) share price plummeted 10%?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk and Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Youfoodz Holdings Ltd (ASX: YFZ) share price is one of the worst-performing initial public offerings of 2020. Its shares have struggled to gain traction, falling from a listing price of $1.50 to a close of 70.5 cents on Thursday. 

The company announced its third-quarter update with FY21 guidance today. At the time of writing, the Youfoodz share price has plummeted 14.8% and is now trading at 60 cents.

What’s driving the Youfoodz share price down? 

During the third quarter, Youfoodz prepared a total of 4.9 million meals, representing a 23.6% increase on the prior corresponding period (pcp). This translated to an 18.2% increase in gross revenues to $35.3 million. 

The company believes the results demonstrate the continued momentum in the business compared to the pcp, which captured a strong uplift in customers and revenues due to initial COVID-19 lockdowns across Australia. 

Revenue breakdown

The Youfoodz business generates revenue from two key segments, B2C (home delivery) and B2B (wholesale).

The update highlighted a 41.2% improvement in B2C revenues to $34.6 million. This was driven by a range of marketing initiatives resulting in rapid customer acquisition and active customer growth. The B2C segment has seen customer order frequency over the quarter remain relatively consistent at approximately 2.6 for the quarter and a 10.4% increase in average order value to $96.8 per order. 

The company launched its partnership with Velocity during the quarter, providing access to its ~10 million program members. While early in the relationship, the company has been pleased with the customer take-up to date. 

B2B revenues during the quarter decreased 3.8% to $15.6 million. The company blamed uncertainty associated with localised lock-downs resulting in minimal stocking levels from customers. Sales to gym and corporate customers were also negligible.

Looking ahead

As the pandemic restrictions have been lifted, the company sees some early indications that customers are beginning to increase orders in the fourth quarter. However, it notes uncertainty as to when gym and corporate customers will recommence ordering. 

Youfoodz intends to strengthen its wholesale relationships and explore range expansion opportunities with existing customers. This is evident in supermarkets with a successful meal range extension with one large national supermarket customer and an agreement to launch its beverage range into another national customer in 4Q FY21. 

Overall, the company expects FY21 gross revenue to be within the range of $201 million to $205 million (vs. prospectus forecast of $199.8 million). 

However, given the underperformance of B2B and greater marketing and customer acquisition incentives, the company expects FY21 net revenue to be in the range of $146 million to $148 million (vs. prospectus forecast of $149.9 million). 

Why the Youfoodz share price is weaker on Friday

Redbubble Ltd (ASX: RBL) and Kogan.com Ltd (ASX: KGN) have delivered similar quarterly updates as Youfoodz – largely positive performances with slight negatives around areas such as margins, marketing investment and inventory. 

Today’s major fall in the Youfoodz share price could reflect a market unimpressed with the company’s underperforming B2B segment and missing prospectus revenue forecasts.

More reading

• Kogan (ASX:KGN) share price crashes 13% on Q3 update
• ASX 200 down 0.1%: Kogan crashes, AMP’s demerger plans, Telstra strengthens 5G network
• Why some of your favourite ASX growth shares are free-falling this week
• Why has the Kogan (ASX:KGN) share price plummeted 10%?
• ASX 200 recovers, Redbubble sinks, Megaport jumps

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and 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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When one thinks of what the most traded share on the S&P/ASX 200 Index (ASX: XJO) might be, AMP Ltd (ASX: AMP) is not one that would normally spring to the front of one’s mind.

What about the uber-popular ASX growth shares like Afterpay Ltd (ASX: APT)? Or the biggest ASX blue chips like Commonwealth Bank of Australia (ASX: CBA), CSL Limited (ASX: CSL) or BHP Group Ltd (ASX: BHP).

‘The AMP’ might have been an ASX blue chip heavyweight once. But with its current market capitalisation of just $3.89 billion, it is now dwarfed by companies like CBA ($158 billion). Heck, even Zip Co Ltd (ASX: Z1P) is now bigger than AMP.

And yet, AMP Ltd is today the most traded ASX 200 share on the market.

The AMP share price’s 1.07% move higher today certainly doesn’t look too extraordinary. However, AMP shares were up more than 4% at one point this morning. ASX data shows that roughly 24.7 million AMP shares have changed hands today at the time of writing. That’s way above the next most-traded ASX share in Pilbara Minerals Ltd (ASX: PLS), which has close to 14 million shares swapping hands.

So why is AMP such a popular trade today?

Massive interest in the AMP share price

Well, to start with, AMP had a shocker yesterday, falling by more than 3%. The catalyst for that drop was its quarterly report for the 3 months ending 31 March. The wealth manager told investors that it had lost $1.5 billion in net cash outflows over the month, which was only just offset by a $1.6 billion rise in total funds under management. But his rise was only due to higher investment markets.

But today, we had some new news out of AMP. Which is undoubtedly fuelling the heavy trading we are seeing today.

As my Fool colleague James covered earlier today, AMP has announced a planned demerger. This demerger will result in the spinoff of AMP Capital’s Private Markets business. Private Markets will house some of the business assets of AMP Capital. According to the company’s announcement, it will be a “ leading global private markets investment manager with a strong performance track record in differentiated asset classes of infrastructure equity, infrastructure debt and real estate, and capabilities to expand into attractive growth adjacencies“.

Meanwhile, the ‘new slimmed-down AMP’ will be a retail-focused wealth manager as well as offering investment and banking services. It will also hold a 20% interest in Private Markets, as well as AMP Capital’s Global Equity and Fixed Income business (which might be sold off as well), and AMP Capital’s Multi-Asset Group.

Judging by the AMP share price today, as well as the huge number of shares traded, investors are taking a keen interest in what this beleaguered ASX share has pulled out of its hat.

More reading

• Why Accent, AMP, De Grey, & Nuix shares are charging higher
• What’s happening with the ANZ Bank (ASX:ANZ) share price?
• ASX 200 down 0.1%: Kogan crashes, AMP’s demerger plans, Telstra strengthens 5G network
• What Biden’s capital gains tax changes could mean for the ASX 200
• AMP (ASX:AMP) share price charges higher on demerger plans

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Kogan.com Ltd (ASX: KGN) share price is well and truly out of form on Friday.

In afternoon trade, the ecommerce company’s shares are down 13% to $10.80.

This means the Kogan share price is now down 58% from its 52-week high.

Why is the Kogan share price crashing lower?

Investors have been heading to the exits in their droves today after Kogan became the latest ecommerce company to release a disappointing third quarter update.

This follows similarly poorly received releases by Redbubble Ltd (ASX: RBL) and Temple & Webster Group Ltd (ASX: TPW) earlier this week.

What did Kogan report?

For the third quarter of FY 2021, Kogan reported gross sales growth of ~47% and revenue growth of ~65% across its businesses.

This was driven by a 77% increase in active customers over the prior corresponding period to 3,215,000 for Kogan.com and 742,000 for Mighty Ape.

This compares to active customers of 3,003,000 for Kogan.com and 719,000 for Mighty Ape at the end of December.

Earnings decline

While the above looks very positive, it went downhill quickly from there. Which is why the Kogan share price is crashing lower today.

Although its gross profit rose over 54%, its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell more than 24% compared to the prior corresponding period.

This decline was driven by its core Kogan.com business, which reported a significant increase in operating costs. This led to this side of the business posting an adjusted EBITDA decline of more than 42% for the period.

What’s causing this?

Kogan explained that during the quarter customer demand fluctuated below the levels seen in the prior nine months. As a result, the company was required to store larger than expected levels of inventory.

This led to Kogan incurring high storage expenses and demurrage fees.

The company has been progressively working towards optimising the inventory position to reflect current market conditions. However, this is being done by increasing its promotional activity, which could weigh on margins in the near term.

Also weighing on its performance is price inflation. This is being seen for many products currently being planned for reorder in advance of the peak Christmas trading period.

Is the Kogan share price in the buy zone?

Brokers have yet to react to this update, so it is difficult to say whether the Kogan share price is now in the buy zone.

But prior to today, Credit Suisse had an outperform rating and $20.85 price target and UBS had a neutral rating and $15.10 price target.

Both price targets are significantly higher than the current Kogan share price of $10.80.

More reading

• ASX 200 down 0.1%: Kogan crashes, AMP’s demerger plans, Telstra strengthens 5G network
• Why some of your favourite ASX growth shares are free-falling this week
• Why has the Kogan (ASX:KGN) share price plummeted 10%?
• ASX 200 recovers, Redbubble sinks, Megaport jumps
• 2 exciting e-commerce ASX shares growing rapidly

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 Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Commonwealth Bank of Australia (ASX: CBA) share price is having a stellar year on the ASX. In fact, the banking giant is now only 2% lower than its highest share price of the last 5 years.

So far, the CBA share price has gained around 6% year to date. If it keeps up this rate of growth, it could smash its previous all-time high of ~$96 (which it reached in 2015) before the end of the year.

Let’s take a look at what’s been driving the bank’s share price lately.

How bright is the future?

The CBA share price has been performing well lately, despite a rough trot for the banking giant.

In the last month alone, the Commonwealth Bank has weathered class actions, copped a $7 million fine for deceptive conduct, and settled a US class action.

Fortunately for its shareholders, the bank’s share price has continued to climb despite the bad press. It’s grown by around 5% over the last 30 days.

It’s been helped along by an impressive economic recovery, as its rival National Australia Bank Ltd (ASX: NAB) reports is nearing completion.

The Australian employment rate is also looking positive, as the number of hours worked by Australians is back to pre-COVID levels. This bodes well for Australia’s economy and, arguably, banking shares, in turn.

Currently, the CBA share price is only around 7% lower than its all-time highest closing price. 

With the International Monetary Fund now believing Australia will completely recover from the COVID-induced recession in 2021, is there a chance we might see CBA shares smash their record before the year ends?

CBA share price snapshot

At the time of writing, the CBA share price is even with yesterday’s closing price of $89.14.

Based on the current share price, the company has a price-to-earnings (P/E) ratio of 23.98.

Commonwealth Bank has a market capitalisation of around $158 billion, with approximately 1.77 billion shares outstanding.

More reading

• Aussie adds digital home loans in an effort to keep up with the big four
• Aussie investors snapped up Coinbase (NASDAQ:COIN) shares last week
• Westpac, ANZ, CBA share prices dip after class action for ‘junk’ insurance
• ANZ Bank’s (ASX:ANZ) profit result could get an extra boost: Macquarie
• Why the Commonwealth Bank (ASX:CBA) share price is flying right now

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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ASX investors have long struggled with a seemingly simple question: how much are shares of Afterpay Ltd (ASX: APT) really worth? At the time of writing, the market has decided a price of $124.38 is appropriate. But, judging history, this could change dramatically in the future. Back on 10 February, Afterpay was judged to be worth $160 a share at one point. And of course, in March last year, the market decided that a price under $9 was fair.

Since Afterpay doesn’t yet make positive earnings, or official profits just yet, it’s hard to value this company on its cash flows (or lack thereof). So it has turned into a ‘future profits’ game for this company.

Well, one investor isn’t so optimistic.

According to a report in the Australian Financial Review (AFR) this week, the highly regarded American brokerage firm Bernstein has just initiated coverage of the Afterpay share price. This is fitting, I suppose, seeing as it looks as though Afterpay is heading for a US listing soon.

So what did Bernstein, which the AFR notes are a firm “which has a reputation for high-quality investment research”, think of Afterpay shares today?

Well, not highly, it seems. Bernstein has reportedly given Afterpay a price target of just $40 a share. That’s a good 68% down from the share price we see right now.

Is Afterpay worth $40 a share?

Why such a low share price target? Well, Bernstein isn’t worried about Afterpay’s raw growth. The report states that Bernstein is actually assuming Afterpay will be able to grow its gross merchant value by ten times to $108 billion over the next 5 years. That will be fuelled by continued growth in the buy now, pay later (BNPL) market itself, as well as Afterpay growing its market share and expanding into new markets.

But Bernstein is predicting that Afterpay will have to bow to competitive pressure as it grows. It sees Afterpay experiencing margin compression, and estimated the company’s ‘take-rate’ will fall from the 3.8% it’s currently at to 2.8% over the next 5 years.

This, Bernstein says, is exactly what has happened to other payments companies like PayPal Holdings Inc (NASDAQ: PYPL). The broker also notes that PayPal managed to pull in a third of Afterpay’s payment volume in the first quarter of offering its own instalments plan.

Bernstein sees Afterpay hitting revenues of $3.6 billion in 2025 and profits of $349 million. That would deliver Afterpay earnings per share of $1.30, which would give Afterpay a share price of $51 a share on a price-to-earnings (P/E) ratio of 40. That $51 share price for 2025 has been discounted back to $40 today.

It’s worth noting that many other brokers are far more bullish on Afterpay. According to the AFR, broker Jefferies has recently raised its price target to $157.38 on higher revenue and growth forecasts. Citi has a $128.3 price target.

I guess we’ll have to wait until 2025 to see who’s right. But someone is going to be very wrong at the same time.

More reading

• Could a dual listing drive the Afterpay (ASX:APT) share price higher? 
• Why your ASX 200 shares aren’t going up with the market 
• Is the Afterpay (ASX:APT) share price fully valued?
• Top brokers name 3 ASX shares to sell today
• Is the Afterpay (ASX:APT) share price a buying opportunity right now?

Sebastian Bowen 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 PayPal Holdings and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In early afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a small daily decline. At the time of writing, the benchmark index is down 0.15% to 7,045.6 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are charging higher:

Accent Group Ltd (ASX: AX1)

The Accent share price has jumped 6.5% to $2.77. The catalyst for this was news that the retailer has signed an agreement to acquire Glue Store and the wholesale and distribution brands of Next Athleisure for a cash consideration of $13 million. Glue Store operates a network of 21 stores and an integrated online site, with around 500,000 loyalty program members. It currently generates annual sales of approximately $90 million, including $16.6 million of online sales.

AMP Ltd (ASX: AMP)

The AMP share price is up 1.5% to $1.15. Investors have been buying the financial services company’s shares after it announced demerger plans. AMP revealed that it intends to pursue a demerger of AMP Capital’s Private Markets business. It believes the demerger will create two focused businesses that are better equipped to pursue and allocate capital to distinct growth opportunities.

De Grey Mining Limited (ASX: DEG)

The De Grey Mining share price is up almost 10% to $1.46. Investors have been buying the gold exploration company’s shares following the release of drilling results. According to the release, strong mineralisation has been intersected at its Aquila and Crow sites. In respect to the latter, visible gold was intersected again in the McLeod lode at Crow.

Nuix Ltd (ASX: NXL)

The Nuix share price is pushing 5.5% higher to $4.53. This gain appears to have been driven by a broker note out of Morgan Stanley this morning. According to the note, the broker has retained its overweight rating but trimmed its price target to $7.50. Although its guidance downgrade was disappointing, Morgan Stanley remains positive. It feels the global forensic and investigative software market is a structural growth story.

More reading

• ASX 200 down 0.1%: Kogan crashes, AMP’s demerger plans, Telstra strengthens 5G network
• AMP (ASX:AMP) share price charges higher on demerger plans
• Accent (ASX:AX1) share price on watch after announcing Glue acquisition
• 2 growing ASX dividend shares for income investors
• Why is the NUIX (ASX:NXL) share price rebounding today?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia has recommended Accent Group and Nuix Pty 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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If you’re looking for today’s biggest mover, you’ll probably be eyeing Brockman Mining Ltd (ASX: BCK) shares.

At its highest point today, the Brockman Mining share price had rocketed 361% higher than yesterday’s closing price.

At the time of writing, shares in the company are trading at 8.8 cents, representing a still mammoth 238% gain. 

What’s lit the fire under the Brockman Mining share price? Let’s take a look.

Farm-in and joint venture agreement

Today, Brockman Mining announced its farm-in and joint venture agreement with Mineral Resources Ltd (ASX: MIN) has come to fruition.

The deal was first announced in 2018, but today’s news is that the companies are finally signing the joint venture portion of the agreement. 

The deal is between subsidiaries of both companies. Brockman’s Brockman Iron and Mineral Resources’ Polaris are representing their ASX-listed parent companies.

Originally, the deal would have seen Polaris securing 50% of Brockman’s Marillana Iron Ore Project. Today, it’s been updated to also include Brockman’s Ophthalmia Project.

Under the agreement’s terms, Polaris began a farm-in venture at Brockman’s Marillana Iron Ore Project. Once Polaris had met its farm-in obligations, the companies would form a joint venture, each owning half of the Marillana Project.

The farm-in agreement’s obligations include Polaris providing Brockman with a $10 million loan, spending $250,000 to explore and develop Marillana, and completing a mine site plan.

There’s also an agreement that another subsidiary of Mineral Resources would pay for and build a rail and port system from the project to Port Hedland ­– a distance of around 270 kilometres.

According to Mineral Resources, the project will mine iron ore to be sold in China.

Brockman Mining share price snapshot

The company is dual-listed on both the ASX and the Hong Kong Stock Exchange and, while it’s prone to volatility, today’s moves are next level.

Currently, the Brockman Mining share price is up by around 47% year to date. It’s also up by 340% over the last 12 months.

The company has a market capitalisation of around $241 million, with approximately 9.2 billion shares outstanding.

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

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

The post Brockman Mining (ASX:BCK) share price rockets 240% today appeared first on The Motley Fool Australia.

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