Tag: Motley Fool

A new share trading platform is allowing Australians to buy a fraction of an ASX share.

Sharesies, which was already running this feature in its native New Zealand, launched the capability in Australia this week. 

The development is believed to be an industry-first in this country.

For example, say you had $100 to invest and you really wanted to buy CSL Limited (ASX: CSL) shares. 

At $265 a pop, it would have been previously impossible to buy into the healthcare giant.

But with Sharesies, you are able to buy $100 worth of CSL. This would be about 0.38 of one share.

Sharesies co-founder and chief executive Brooke Roberts told The Motley Fool that when the business started in New Zealand, many investors felt “priced out” of stock investing.

“Our vision is to give someone with $5 and someone with $5 million the same investment opportunities,” she said.

“In order to make that possible, fractionalising share ownership is an incredibly important part of that.”

Fractional ownership also helps when you want to buy a precise dollar amount of a particular stock. For example, Sharesies will allow you to buy $1,000 worth of CSL by giving you 3.77 shares.

To complement fractional transactions, Sharesies is also claiming to be the first online broker accessible to Australians that has no minimum investment requirements for ASX, NZX, NASDAQ, NYSE and CBOE equities.

You just need 1 cent to place an order.

How Sharesies implements fractional stock ownership

So what kind of magic is Sharesies pulling to allow fractional shares?

Roberts told The Motley Fool that all fractional purchases are “on-market” — it’s not a case of simulated stock ownership.

“A share’s worth $1 and [the user] wants to buy 25 cents of that. Sharesies buys the full $1 share — then Sharesies Limited owns 75 cents, and the customer owns 25 cents.”

When the user wants to sell their fraction, Sharesies would also offload their portion, therefore returning a whole stock back to the market.

“Sharesies has a book that runs the remaining [part] share that customers haven’t purchased.”

The part ownership from Sharesies is facilitated through a custody arrangement, where the platform (with its own Holder Identification Number) is the registered owner of the whole share. But the user would be listed as the “beneficial owner”.

According to Sharesies’ website, if the company runs into financial trouble the shares are protected by a trust.

On the flip side, Sharesies absorbs the risk of owning a portfolio of fractional shares that are the inverse of customers’ assets.

For example, if the customer sells their fractional share at a loss, then Sharesies too would be forced to cop that loss.

The fact that all Sharesies customers share a single Holder Identification Number also allows the platform to do away with the ASX’s $500 order minimum.

There is no additional cost for fractional transactions. Sharesies’ standard fee structure of 0.5% for orders up to $3,000 and 0.1% for amounts above that applies, regardless of whether fractions are involved.

“If someone does a $5 trade, it costs 5 cents,” said Roberts.

“We really want to help people feel like an investor and build their confidence and motivation.”

Sharesies launched in May 2017 and now boasts 350,000 users. The company is running under the Australian financial services licence of Sanlam Private Wealth Pty Ltd.

More reading

• Aussie dollar shoots higher! Here are some ASX winners
• CSL (ASX:CSL) share price wobbles on plasma and vaccine update
• Why the CSL (ASX:CSL) share price might be headed for more trouble
• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• 2 five-star stocks to buy

Tony Yoo owns shares of CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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 AUSSIE-FIRST: How to buy a fraction of an ASX share appeared first on The Motley Fool Australia.

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Imugene Limited (ASX: IMU) shares are on the rise today after news from the company on its HER-Vaxx’s clinical trial. The Imugene share price opened today’s session 8.15% higher at 20 cents before climbing to an intraday high of 21.5 cents. At the time of writing, the company’s shares have retreated back to 19 cents, up 2.7%.

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

What’s boosting the Imugene share price? 

The Imugene share price is responding positively after the biotech announced today that the second clinical endpoint for its HER-Vaxx clinical studies has been met.

HER-Vaxx is an immunotherapy to treat tumours that over-express the HER-2/neu receptor, such as gastric, breast, ovarian, lung and pancreatic cancers.

The first clinical end point was overall patient survival, while the second was progression-free survival (PFS).

The company states its second clinical endpoint has been met, as a statistically significant amount of PFS has occurred.

The trial is the second phase of HER-Vaxx trials. It’s being conducted in multiple sites across Eastern Europe and India, where clinicians have difficulty accessing antibody treatments and there are high levels of gastric cancer.

Data from 24 PFS events will now be analysed. The company stated final PFS results are expected in the coming months.

Commentary from management

Imugene managing director and CEO Leslie Chong commented on the company’s news. She said:

I am delighted to report that we have achieved this new significant milestone for patients with advanced gastric cancer, following on from the important interim data released in 2020 and new data presented at AACR earlier this month. I look forward to updating the market as the data is analysed.

Imugene share price snapshot

Imugene shares have been having a roaring time on the ASX lately.

Currently, the Imugene share price is up by 90% year to date. It’s also up by 850% over the last 12 months.

The company has a market capitalisation of around $881 million, with approximately 4.7 million shares outstanding.

More reading

• Why Corp Travel Management, Imugene, MoneyMe, & Syrah are pushing higher
• Why Brickworks, Imugene, Platinum, & Synlait shares are dropping today
• Why the Imugene (ASX:IMU) share price just hit an all-time high

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 1.3% to 6,924.2 points.

Four ASX shares that have not let that hold them back are listed below. Here’s why they are pushing higher:

Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel Management share price is up 2.5% to $19.51. Investors have been buying the corporate travel specialist’s shares after it revealed that it expects to be profitable in the fourth quarter of FY 2021. This follows a breakeven month in March after the company experienced an uptick in demand for corporate travel services.

Imugene Limited (ASX: IMU)

The Imugene share price is up almost 4% to 19 cents. The catalyst for this is news that Imugene has met its second clinical endpoint for the HER-Vaxx’s clinical studies. HER-Vaxx is an immunotherapy that is aiming to treat tumours that over-express the HER-2/neu receptor. This includes gastric, breast, ovarian, lung and pancreatic cancers.

MoneyMe Ltd (ASX: MME)

The MoneyMe share price is up 3.5% to $1.49. Investors have been buying the the digital credit company’s shares after it announced a new product launch. According to the release, MoneyMe has unveiled Autopay, a secured vehicle finance solution for dealers and major growth innovation. Management believes that the product will transform the $12 billion automotive finance industry.

Syrah Resources Ltd (ASX: SYR)

The Syrah share price is up 4% to $1.10. This follows the release of the graphite producer’s third quarter update this morning. Syrah noted that there is strong demand growth for natural graphite end uses. This is being driven by electric vehicle (EV) adoption. It points out that EV sales are up 140% in during the first quarter compared to a year ago.

More reading

• Here’s why the Imugene (ASX:IMU) share price opened 8% higher today
• Why the Corporate Travel Management (ASX:CTD) share price is soaring today
• Why the Syrah (ASX:SYR) share price is moving today
• MoneyMe (ASX:MME) share price edges higher on positive trading update
• Airbnb predicts huge rebound, ASX travel shares in the hot seat

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management 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 Greenland Minerals Ltd (ASX: GGG) share price is falling again today after the latest news of the company’s dealings with Greenland’s new government. The winning party of Greenland’s recent snap election is determined to stop developments at the miner’s Kvanefjeld Project.

At the time of writing, the Greenland Minerals share price is down 15.24% trading at 8.9 cents.

Let’s take a closer look at today’s news from the rare earth miner.

New coalition formed; Greenland Minerals future still unknown

Today’s news comes in an update from the company on its battle to keep progressing the development of its Kvanefjeld Project.

The company says there are reports that a coalition government, made of Greenland’s Inuit Ataqatigiit and Naleraq parties, has been created in the wake of the nation’s election on 6 April.

The miner states it will begin discussions with the Government – whose leadership has declared its intention to stop the development of the Kvanefjeld Project.  

The BBC reported the snap election was initiated after a huge public backlash of the project caused a collapse of the previous government. 

The former government had supported the development, saying it would generate hundreds of millions of dollars annually for the country. Thus, allowing Greenland greater independence from Denmark, of which Greenland is an autonomous territory.

Always a wrangle

Greenland Minerals has been operating in the nation since 2007, when it first acquired the mine site.

Since then, the company has applied for an exploration licence, which it’s still yet to receive.  

A multi-year investigation concluded in December 2020, when the former government approved the company’s environmental and social impact assessments.

Greenland Minerals was then to begin a process of public consultation, which quickly became its undoing. The public consultation was originally scheduled for completion by June 2021.

Now, the future of the project is in the hands of a government seemingly determined to put it to bed.

Greenland Minerals share price snapshot

The Greenland Minerals share price has been plunging on the ASX lately, with the latest news adding to its collapse.

Currently, the Greenland Minerals share price is down 51% over the last 30 days.

It’s also down by 68% year to date and 12% over the last 12 months.

The company now has a market capitalisation of around $140 million, with approximately 1.3 billion shares outstanding.

More reading

• ASX stock of the day: The Greenland Minerals (ASX:GGG) share price is up 18% today
• Why the Greenland Minerals (ASX:GGG) share price is rocketing 17% today
• Why Aurelia Metals, Brickworks, Greenland Minerals, & Resolute are tumbling lower
• Why the Greenland Minerals (ASX:GGG) share price is crashing 45% lower 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.

The post Down 51% in a month, the Greenland Minerals (ASX:GGG) share price is still sinking appeared first on The Motley Fool Australia.

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Actinogen Medical Ltd (ASX: ACW) shares are tumbling today after the company released its quarterly activity report and strategic update this morning. At the time of writing, the Actinogen share price is sliding a whopping 17.24% to 4.8 cents. 

Actinogen is a biotechnology company that develops drugs for Alzheimer’s disease and the cognitive decline associated with other neurological and metabolic diseases. Geographically, it operates in and derives revenue from Australia.

The company’s main product is called Xanamem. Xanamem is a brain-penetrant, small-molecule enzyme inhibitor that works to inhibit excess cortisol production inside brain cells.

What Actinogen’s quarterly report stated

Actinogen shares have fallen off a cliff today following the release of the company’s latest updates. Actinogen advised that it continues to focus on the development of its lead drug, Xanamem, as a treatment for multiple indications. According to the company, it is leveraging the positive phase I XanaHES results, in which a significant improvement in multiple cognition domains was achieved in healthy older volunteers.

Now the company is seeking to progress its Xanamem treatments into an Alzheimer’s population with a phase II XanaMIA trial planned to target patients with mild cognitive impairment due to Alzheimer’s Disease.

In its update, the company advised that whilst it has “data supporting [the] efficacy of Xanamem in doses as low as 5mg” part of the phase II study’s purpose will be “seeking to confirm [the] minimum effective Xanamem dose”.

The company’s uncertainty surrounding the drug’s dosage could be a potential reason investors are driving down the Actinogen share price today. Actinogen has advised it will hold a shareholder teleconference on 23 April during which it will provide an update on the company’s “dose ranging study seeking to confirm minimum effective Xanamem dose”.

In parallel, Actinogen remains focused on progressing study planning for anxiety, sleep and behavioural problems in Fragile X syndrome (FXS). These symptoms have a substantial impact on day-to-day functioning of patients and their carers and there are currently no approved treatment options that specifically target these symptoms associated with FXS.

Actinogen says it is “well advanced” with the planning for its Phase II XanaFX, with the trial expected to commence in the second half of this year.

During the quarter, Xanamem was also awarded a Rare Paediatric Disease Designation (RPDD) for Xanamem in the treatment of FXS in patients under the age of 18. The RPDD program is designed to incentivise the development of drugs for rare childhood illnesses, such as FXS, with potential clinical, development and commercial benefits.

Management comments

Actinogen CEO and MD Steven Gourlay was upbeat about the company’s ability to deliver future shareholder value, saying: 

After many years of working in the biopharma industry, I am excited by the huge potential of Actinogen. In my last major role at Principia Biopharma as Chief Medical Officer, I steered two small molecules from a microcap company valuation, through successful Phase II development and into Phase III, resulting in a significant value appreciation for shareholders when the company was acquired for US$3.7B.

I find Actinogen to be a similar investment opportunity: excellent science, a promising Phase II molecule for multiple indications, with an attractive valuation, and so accepted the role as CEO / MD, and personally invested over A$300K into the Company prior to my appointment. We are now planning for multiple shots on goal and strongly believe the upcoming trials are designed to achieve informative and positive outcomes. I look forward to working with the team to further develop Xanamem as we progress the development pipeline.

Actinogen share price snapshot

Following today’s releases, the Actinogen share price is falling against its 52-week high of 6.2 cents set on Monday this week. Actinogen shares are up from just over two cents per share at the beginning of March. The company has a current market capitalisation of around $96 million.

More reading

• Actinogen (ASX:ACW) share price surges 23% today, 165% this year

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 Ardent Leisure Group Ltd (ASX: ALG) share price is above the clouds today. At the time of writing, the tourism operator’s shares are swapping hands for 99 cents each, up 7%. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is 1.5% lower.

Today’s price movement comes as the company updated the market on its recent financial performance and announced the immediate departure of one of its senior executives.

Let’s take a closer look at today’s announcements and what they might mean for the Ardent share price.

Performance update

Main Event

In the first part of its first statement, the company gave a mixed assessment of the financial operations of its various businesses.

In the update for subsidiary Main Event, a US-based family entertainment company with 44 locations, the figures compare the reopened centres only (34 of 44) to their previous performances.

Revenue was down 18.8% in January compared to the previous year. While negative, the rate is lower than compared to the latter half of 2020.  In February, revenue was down 21.5%. The company attributed this increasing rate to the winter storms which devasted the US, and particularly Texas.

Without the impact of the storms, Ardent says revenue would only be down 15.8% compared to FY19.

In March 2021, centre revenue was up 23% compared to March 2019. It is compared to 2019 and not 2020 because all centres were shut due to the COVID-19 pandemic. The company said it achieved its best sales week ever during the month, despite 2 centres still closed.

During the first 19 days of April, revenue was up 44% compared to 24 months prior.

Ardent says Main Event’s strong performance in the last couple of months was because of speedy vaccine rollout in the United States, direct stimulus payments to consumers, and lowering COVID infection rates.

Main Event president and CEO Chris Morris said:

Current trading conditions should not be taken as a guide to future performance.

We are unable to predict the length and extent of the strong constant centre revenue growth since March, however, we are optimistic that consumer demand will remain robust as long as the United States does not suffer any setbacks in case counts or vaccine efficacy.

Theme Parks

Ardent gave a pessimistic outlook on its theme park operations. The company’s best-known theme parks are Dreamworld, Movie World, and WhiteWater World on the Gold Coast. 

Trading during the second half of the financial year was impacted by the Brisbane lockdowns and “adverse weather events”. Both occurred during the first week of the school holidays, a peak time for the company.

Attendance numbers were steady compared to the previous year. However, the company expects its earnings before interest, tax, depreciation and amortisation (EBITDA) to be down due to the end of the JobKeeper subsidy.

Theme Parks CEO John Osborne said the company expected conditions to remain challenging for the remainder of FY21 and the first half of FY22.

We are optimistic about trading in the second half of FY22, driven by the expected opening of Steel Taipan and pent-up local and interstate demand though this is largely contingent on the Australian vaccine rollout, no COVID-19 outbreaks and resultant domestic border confidence.

CEO departs

The company also announced Mr Osborne would be leaving his role, effective immediately, for personal reasons. Theme Parks’ previous chief operating officer Greg Young will replace him.

Mr Osborne will continue to consult Mr Young on several projects.

Ardent share price snapshot

Over the past year, the Ardent share price has increased 249.1%. The company hit its 52-week record at the beginning of March 2021 and is only just under it now. However, Ardent shares are still 33.5% lower than the beginning of February 2020, just before the pandemic.

Ardent Leisure has a market capitalisation of $441.3 million.

More reading

• The ASX shares brokers think you should be watching
• 4 ASX shares with director buys this month

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

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

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:

Afterpay Ltd (ASX: APT)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $149.00 price target on this payments company’s shares. Morgan Stanley was pleased with Afterpay’s third quarter update, which revealed sales ahead of its expectations. The broker also notes that the company’s platform is generating creating value for merchants through significant lead referrals via the Afterpay platform. The Afterpay share price is trading at $121.98 this afternoon.

Temple & Webster Group Ltd (ASX: TPW)

Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted the price target on this online furniture and homewares retailer’s shares to $15.00. This follows the release of Temple & Webster’s third quarter update this week. While the broker has lowered its earnings forecasts materially to account for management’s plan to invest heavily for growth, it appears to be a fan of the strategy and expects it to cement its leadership position. The Temple & Webster share price is fetching $9.99 today.

Westpac Banking Corp (ASX: WBC)

Analysts at Citi have retained their buy rating and lifted their price target on this banking giant’s shares to $28.50. According to the note, the broker believes that Westpac has the biggest cost reduction potential in the sector. This should be supportive of earnings and dividend growth in the coming years. As a result of this, Citi has named Westpac as its top pick among the big four banks. The Westpac share price is trading at $24.70 on Wednesday afternoon.

More reading

• 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
• Leading brokers give their verdict on the Afterpay (ASX:APT) share price
• Got money to invest? Here are 2 ASX shares to buy
• Latitude (ASX:LFS) makes a splash on its ASX debut

James Mickleboro owns shares of Westpac Banking. 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 AFTERPAY T FPO. 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 Telix Pharmaceuticals Ltd (ASX: TLX) share price has the wobbles today after the company shared news of a successful trial.  

The biopharmaceutical company announced that its kidney cancer imaging product’s Japanese clinical study met all objectives for its first phase.

The Telix share price plummeted from its opening price of $3.96 to an intraday low of $3.87, before gaining – and losing – ground through the morning trade. At the time of writing, Telix shares are down 0.51%, trading at $3.89.

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

Successful study

Today, Telix shared news that its clinical study, Zirconium Dosing and Comparison in Japan (ZIRDAC-JP), has proven successful. The study met its objectives of positively measuring the safety, tolerability, required radiation dosage, and movement within the body of its TLX250-CDx.

TLX250-CDx is an imaging radiopharmaceutical for the imaging of clear cell renal cell carcinoma (ccRCC), the most aggressive form of kidney cancer. ccRCC makes up 70% to 85% of all kidney cancers. According to Telix, TLX250-CDx targets a cell-surface antigen called Carbonic Anhydrase IX.

The company states that many patients are diagnosed with a renal mass, and TLX250-CDx is able to determine whether they are cancerous in a non-invasive inspection.

Phase 1 of the study was completed at Yokohama City University Hospital. There, six patients with an unspecified renal mass underwent dosing with TLX250-CDx, followed by positron emission tomography imaging.

All 6 patients completed the study with no adverse events. The whole-body and organ-specific radiation dosage needed for TLX250-CDx showed no difference between Japanese and Caucasian patients.

Commentary from management

Telix chief medical officer Dr Colin Hayward said the company was encouraged by the study’s results:

We now plan to consult with the Japanese regulator to confirm the design of the next stage of development for TLX250-CDx, with the objective of bridging to Telix’s international Phase III ZIRCON study, currently enrolling patients at 36 sites globally.

Telix pharmaceuticals share price snapshot 

If investors embrace today’s news, the Telix share price may break into the ASX 2021 green.

Currrently, the Telix share price is down 2.9% year to date, although it’s up a whopping 238% over the last 12 months.

The company has a market capitalisation of around $1 billion, with approximately 281 million shares outstanding.

More reading

• Top brokers name 3 ASX small cap shares to buy
• Why the Telix (ASX:TLX) share price is storming 5% higher

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 Fortescue Metals Group Ltd (ASX: FMG) share price is falling today after its chair, Andrew ‘Twiggy’ Forrest, lambasted the fossil fuels industry in an interview with ABC program, 7:30. 

At the time of writing, the Fortescue share price is down 3.19% to $20.91 per share. 

Fortescue is one of the world’s biggest polluters. According to the report, emitting two million tonnes of carbon per year. It’s a giant Australian iron ore production and exploration company, with assets located in the Pilbara region of Western Australia.

It’s the fourth largest iron ore producer in the world. Coming in behind BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Vale. However, unlike its competitors, Fortescue is aiming to be carbon neutral by 2030. 

Twiggy’s view on fossil fuels

Australia’s largest iron-ore producer, BHP, is aiming for carbon neutrality by 2050. Moreover, the Australian government is aiming to “preferably” be carbon neutral by 2050.

Forrest is hoping his company’s comparatively radical shift towards net-zero emissions can attract investors and good publicity. In addition, Forrest is aiming to future-proof Fortescue for the long term.

“Fortescue has decided to step up and take that first-mover risk. I believe it’s going to work, and we’ll keep on persevering until it does work,” he told 7.30.

“The fossil fuel industry is perhaps our most dangerous industry in the world right now. It’ll be economics which forces them to change, but they won’t go down without a serious fight.”

Fortescue won’t be including the emissions from its off-shore iron-ore processing in its 2030 target. However, Forrest is hoping by pioneering Australian companies’ switch towards green hydrogen production, he can spearhead a technological change.

“What I need to do is not a Pyrrhic victory, or virtue signalling, like saying, I’m going to try and stop my customers from using coal. I can’t stop them using coal,” he continued.

“What I’m now working on is a replacement for coal, and that’s green hydrogen.”

Australia’s ‘green hydrogen future’

Hydrogen is currently relatively expensive and carbon-intensive to produce compared to lithium batteries, however many scientists believe it has the potential to replace lithium batteries in the future.

Fortescue is currently in talks with the Jordanian government over investing in hydrogen production facilities in the Middle East, but he says Australia could potentially become the world’s largest producer of renewable energy source.

“Then we could well be that Middle East of energy. We need to grasp that opportunity,” he said.

“With a little bit of vision, a little bit of drive and a little bit of risk, could we create a massive new industry which creates the steel which the world needs, which is zero carbon steel?” 

“That’s our future.”

Fortescue share price snapshot

While the Fortescue share price is the only one of Australia’s big three iron-ore producers to fall overall in 2021, it’s still up more than 90% over the past 12 months.

The Fortescue share price has more than doubled, from just over $10 in May 2020 to its current price today.

More reading

• BHP (ASX:BHP) share price drops despite 10-year iron ore highs
• ASX lithium shares are soaring. Is it too late to jump onboard?
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 drops, Challenger plummets, Lynas falls
• Aussie dollar shoots higher! Here are some ASX winners

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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Walkabout Resources Ltd (ASX: WKT) shares are tanking 12% in midday trade after the company announced some changes to its senior management team. After opening today’s session at 37.5 cents, the Walkabout share price is currently trading at an intra-day low of 33 cents.

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

Board and management changes

Walkabout Resources shares are on the slide today after the company announced it will be making changes to its board and senior management positions. According to its release, the proposed management restructuring will position the company for the next phase of its growth.  

Walkabout advised that Mr Mike Elliot has been elected as non-executive chair of the board after serving as a non-executive director. The company also announced that Mr Andrew Cunningham has been appointed as chief executive of Walkabout.

Mr Allan Mulligan will be stepping down from the board and will assume the new role of chief operating officer. As a result of Mr Mulligan’s exit, Walkabout will be looking to appoint two additional non-executive directors once suitable candidates are shortlisted.

Walkabout highlighted that the recently acquired debt funding for its Lindi Jumbo graphite project in Tanzania prompted the management restructure.  

More on the Walkabout share price

Walkabout is an aspiring graphite developer with its flagship Lindi Jumbo Graphite project located in south-east Tanzania. The company holds 100% of the mining licence for the project and aims to take advantage of forecast market demand for graphite products.

The Walkabout share price has surged by more than 80% over the past 2 weeks. The ballistic price action was fuelled by the company’s announcement it had secured a US$20 million finance facility for its Lindi Jumbo project.  

Funding was facilitated by Tanzania’s CRDB Bank and represents a major milestone for the company. Walkabout estimates that capital expenditure for the project is around $US32 million, with the secured debt facility meeting more than 60% of the cost.

According to Walkabout, repayment terms include an 8% per annum interest rate with repayments to be made in quarterly instalments over 42 months following a 12-month grace period.

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• The Walkabout Resources (ASX:WKT) share price is rocketing today, up 44%

Motley Fool contributor Nikhil Gangaram 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 Walkabout (ASX:WKT) share price is dropping 12% appeared first on The Motley Fool Australia.

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