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

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

Even though Tesla (NASDAQ: TSLA) is a “minor player” in the industry, one analyst says, its stock is so overvalued at $700 per share that its $660 billion valuation is almost equivalent to the combined valuation of the entire U.S. and European automotive markets. 

According to Roth Capital analyst Craig Irwin, the market has lost sight of fundamentals when it comes to the electric vehicle (EV) maker. Although it is doing well and is a market leader, “People are just assuming that Tesla has no competition when they put this kind of lofty valuation on the company,” Irwin said yesterday on CNBC’s Squawk Box.

He believes the stock is worth no more than $150 per share.

All the good news from Tesla’s recent first-quarter deliveries report is priced into the stock, the analyst said. 

The EV maker reported producing 180,338 vehicles in the first three months of 2021 and delivering 184,800, well ahead of the 168,000 vehicles Wall Street was expecting Tesla to deliver.

The production numbers consisted solely of Model 3 sedans and Model Y crossover SUVs; it made none of its luxury Model S sedans and Model X SUVs. But it plans to ramp up their production.

To justify its current stock price, Irwin said, Tesla needs to come out with more-advanced vehicles. “They would really need to deliver on the robo-taxis, the fully autonomous vehicles,” he said, but instead, rival EV makers are introducing “vastly superior technology.”

So far in 2021, Tesla stock is down 2%, but the EV maker’s shares are up 620% over the last 12 months. “I see this as a market dislocation,” Irwin said.

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

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• Why Tesla stock jumped on Wednesday
• Here are the US shares ASX investors have been buying

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

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

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The De Grey Mining Limited (ASX: DEG) share price is on watch this morning, after the company announced news from its Hemi Gold Discovery Project.

In particular, the announcement highlights that De Grey has discovered more near-surface gold mineralisation.

The De Grey share price closed yesterday at $1.15. At the time of writing, shares in De Grey are trading for $1.17, up 1.3%.

Let’s look closer at the announcement made by the mining company this morning.

Hemi Gold Discovery Project

Today, De Grey shared a drilling update from Hemi. It has found depth and strike extensions at the project’s Falcon intrusion.

It has also found strong mineral intersections 90 metres below the surface and shallow mineralisation extended to the north of the intrusion.

Including the previously reported:

• 180m vertically below 26.3m @ 2.3g/t Au from 309m, and newly announced:
• 300m below and 20m south of 72m @ 1.6g/t Au from 108m.

Shallow mineralisation extended to the north of Falcon included:

• 32m @ 1.8g/t Au from 63m and
• 72m @ 1.6g/t Au from 108m.

The company additionally announced infill drilling has confirmed mineralisation continuity. These results included:

• 45m @ 1.5g/t Au from 175m,
• 41m @ 2.2g/t Au from 61m, and
• 25m @ 1.2g/t Au from 148m.

The company discovered the resource near Hemi, Western Australia, in late 2019. Since then, its share price has increased 2,200%.

Management’s comments

De Grey manager director, Glenn Jardine stated the results confirmed the increasing scale and continuity of the resource at Hemi:

Results of extensional drilling completed this year at Falcon, Brolga, Aquila, Crow and Diucon/Eagle demonstrate that Hemi has more potential and remains open along strike and at depth. Results of infill drilling announced this year increasingly confirm continuity of mineralisation at each deposit and in the case of Crow, has identified multiple new sub-vertical lodes.

De Grey Mining share price snapshot

After today’s news, the De Grey Mining share price is ready for another good day on the ASX.

The company’s share price is only up by 3.6% year to date. Though, it makes up for the small year to date growth with its 360% increase over the last 12 months.

De Grey Mining has a market capitalisation of $1.48 billion, with approximately 1.2 billion shares outstanding.

More reading

• De Grey (ASX:DEG) share price falters despite new gold discovery
• The De Grey (ASX: DEG) share price lower despite outstanding gold results

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 Piedmont Lithium Ltd (ASX: PLL) share price is pushing higher on Thursday.

In morning trade, the US-based lithium developer’s shares are up 1.5% to 91 cents.

This latest gain means the Piedmont Lithium share price is now up 146% since the start of the year.

Why is the Piedmont Lithium share price rising?

Investors have been buying Piedmont Lithium’s shares after it provided an update on its flagship project in North Carolina.

According to the release, the company has updated the mineral resource estimate for the Piedmont Lithium Project, resulting in a 40% increase in lithium resources.

The release explains that the total mineral resource estimate for the project is now 39.2 Mt at 1.09% lithium oxide. Of this, 55% or 21.6 Mt is currently classified in the indicated category.

This makes the Piedmont Lithium Project one of the largest spodumene resources in the North American market. Importantly, it will be the largest in the United States.

Management commentary

Piedmont Lithium’s President and CEO, Keith D. Phillips, said: “Increasing the scale of our North Carolina mineral resource to 39.2 Mt at 1.09% Li2O establishes our asset as one of the largest spodumene resources in North America – and the only one in the United States.”

“The expanded resource offers the potential for increased annual lithium production, something we will evaluate as we prepare our updated Scoping Study for release next month.”

“All this is coming together at an ideal time, as the public and private sectors dramatically increase their investment in the electrification of America. Given the scope and strategic location of our Piedmont Lithium Project, we believe we are ideally positioned to play a critical role in helping the United States build a clean economy and a U.S. based EV supply chain.”

More reading

• These ASX shares have doubled in value in 2021
• The Sayona (ASX:SYA) share price is tumbling 5% today
• Why Airtasker, Netwealth, Piedmont Lithium, & Resolute Mining are tumbling lower
• Here’s why the Piedmont Lithium (ASX:PLL) share price is crashing 17% lower
• Piedmont Lithium (ASX:PLL) successfully completes US public offering

Motley Fool contributor James Mickleboro 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 Immutep Ltd (ASX: IMM) share price has been a strong performer again on Thursday.

In morning trade, the biotechnology company’s shares are storming 10% higher to 48.5 cents.

Why is the Immutep share price storming higher?

Investors have been buying Immutep’s shares following the release of its second announcement in as many days.

On this occasion, the company has provided an update on its lead product candidate, eftilagimod alpha.

According to the release, the soluble LAG-3 protein, which is better known as efti or IMP321, has received Fast Track designation in first line recurrent or metastatic head and neck squamous cell carcinoma (HNSCC) from the United States Food and Drug Administration (FDA).

The company notes that it was granted Fast Track designation due to its potential to address an unmet medical need, as evidenced by encouraging data indicating a positive risk benefit ratio.

The data package evaluated by the FDA included the promising results from Part C of Immutep’s Phase II TACTI-002 trial. The Overall Response Rate (ORR) from the trial was approximately 36% (approximately 44% in evaluable patients) for 28 patients receiving efti in combination with KEYTRUDA.

What does Fast Track designation mean?

FDA Fast Track designation is awarded to help important new therapies reach patients earlier.

It is designed to facilitate the development and speed up the review of drug candidates to treat serious conditions and fill an unmet medical need.

The company notes that, importantly, it will now have access to more frequent meetings and communications with the FDA. It could potentially even receive Rolling Review of its Biologic License Application (once submitted) and may be eligible for Accelerated Approval and Priority Review, if relevant criteria are met.

Overall, a very promising development, making the Immutep share price one to watch over the rest of the year.

More reading

• Here’s why the Immutep (ASX:IMM) share price is climbing today
• Why Immutep, Inghams, REA Group, & Synlait shares are sinking
• Why the Immutep (ASX:IMM) share price is rocketing 39% higher today
• Why the Immutep (ASX:IMM) share price is up 6% today
• Why the Immutep (ASX:IMM) share price will be in focus today

Motley Fool contributor James Mickleboro 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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US President Joe Biden is pitching his US$2.25 trillion infrastructure plan as integral for his country to keep ahead of China – a rivalry that ASX share investors should warmly embrace.

The president warned that China is trying “to own the future” as he pushes US lawmakers to get behind his ambitious plan, reported Bloomberg.

The new economic arms race will have implications for a range of ASX miners and could reach well beyond the obvious names.

US-China rivalry is good for ASX iron ore miners

It’s easy to see how iron ore demand will get a boost as steel is needed to build infrastructure. But I don’t believe that the increase in US demand is factored into the earnings forecasts of the ASX iron ore majors.

These include the Rio Tinto Ltd (ASX: RIO) share price, Fortescue Metals Group Limited (ASX: FMG) share price and BHP Group Ltd (ASX: BHP) share price.

Some analysts have recently warned that the iron ore price is set for a sharp pull-back as Chinese demand for the mineral can’t maintain its fervent pace.

Earnings upside for these ASX shares

That may be true, but there’s no mention about what’s happening in the US. If Biden gets his way, the ramp up in infrastructure construction activity could roughly coincide with the predicted slowdown in China.

This means that the iron ore price, while it may not break new record highs, might not fall as far as some experts are forecasting.

Other ASX shares to benefit from US infrastructure stimulus

But there is a wide range of other ASX miners that could get a Biden boost too. The president made it clear that his massive infrastructure stimulus isn’t just about road and rail.

“Do you think China is waiting around to invest in its digital infrastructure or in research and development?” Biden was quoted as saying by Bloomberg.

“I promise you, they are not waiting. But they’re counting on American democracy to be too slow, too limited and too divided to keep pace.”

Biden wants to use part of the $3 trillion to spend on water pipes, charging stations for electric vehicles and technology.

The move could add further support to copper, lithium and rare earth prices.

Foolish takeaway

Some ASX shares that are synonymous with these minerals include the OZ Minerals Limited (ASX: OZL) share price, Lynas Rare Earths Ltd (ASX: LYC) share price, Galaxy Resources Limited (ASX: GXY) share price and Orocobre Limited (ASX: ORE) share price.

It shouldn’t be lost on investors that the benefits from the US stimulus will go beyond ASX share prices.

Biden’s bold plan has the potential to lower Australia’s dependency on China – and that’s something all Aussies would welcome.

More reading

• Why the Rio Tinto (ASX:RIO) share price is in focus
• Why the Orocobre (ASX:ORE) share price is surging
• ASX 200 rises, EML jumps, Zip falls
• Why ASX copper shares are cheering for Joe Biden
• Alliance (ASX:AQZ) share price tumbles despite material BHP deal

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Galaxy Resources Limited, Lynas Limited, Orocobre Limited, OZ Minerals Limited, and Rio Tinto Ltd. Connect with me on Twitter @brenlau.

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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When mentioning Westpac Banking Corp (ASX: WBC), it probably doesn’t conjure up images of Bitcoin (CRYPTO: BTC) trading. Westpac is Australia’s oldest bank after all.

Yet Westpac looks set to benefit from Bitcoin and other cryptocurrencies very soon. Perhaps to the tune of $500 million, no less.

How? Well, it’s complicated (and no, Westpac isn’t about to sell bitcoins itself).

Westpac is one of the largest backers of a venture capital fund by the name of Reinventure – “Westpac’s $150m venture capital fund committed to early stage ventures”.  The two businesses are heavily intertwined, with Westpac telling us that:

“[By] working with Reinventure, Westpac gains deep insight into technologies and business models that may drive new customer experiences and disrupt traditional financial services. The Reinventure portfolio companies gain access not just to Westpac capital, but may strategically benefit from Westpac resources and expertise to enable the company to scale more rapidly

One of Reinventure’s early investments was a US company called Coinbase. Coinbase is now one of the largest cryptocurrency exchanges in the world. Coinbase tells us that Reinventure made an investment into Coinbase in 2015 during a Series C funding round. Well, it might be time to reap for Westpac.

Westpac set for a Bitcoin payday

According to Coinbase, the company is set to list on the US Nasdaq exchange. The listing will occur on April 14. Clearly, Coinbase doesn’t believe in superstition because that’s the same day the Titanic hit its iceberg. Its ticker code will be COIN for its Class A shares. As seems to be the norm these days, its Class B shares (which allow 20 votes per share) will not be publically traded and will remain with company insiders.

Coinbase has been chumming up the waters too. Just this morning, it released an earnings report for the 2021 calendar year. In this report, Coinbase reported 56 million verified users, trading volume of US$225 billion, revenue of US$1.8 billion and adjusted earnings before interest, tax, depreciation and amortisation (EBITA) of US$1.1 billion.

We don’t yet know the listing price that COIN shares will go for. But according to a report in the Australian Financial Review (AFR), that will be released next Wednesday. The report estimates that Coinbase will be valued at between US$70-100 billion when it does go public. If that were the case, Reinventure would be looking at a profit of roughly $450 million on its original $50 million investment.

No doubt Westpac will be very pleased with its efforts if that does come to pass.

More reading

• Westpac (ASX:WBC) share price on watch after ASIC launches civil proceedings
• Will China’s great emissions wall crash the Bitcoin price?
• 3 reasons Bitcoin could double your money (and more)
• ASX 200 up 0.25%: EML surges on acquisition news, Westpac’s APRA update
• Westpac (ASX:WBC) share price lower on APRA update

Sebastian Bowen owns shares of Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin. 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 S&P/ASX 200 Index (ASX: XJO) has been range-bound for the past few months, bouncing between 6,600 and 6950.

The index managed to push into a six-week high on Wednesday, attempting to break out of its trading range. Here are the ASX 200 shares riding the strength of the broader market and making record highs. 

ASX 200 shares making 52-week highs 

Brickworks Ltd (ASX: BKW)

The Brickworks share price has pushed into record territory riding the tailwinds of better than expected half-year results. Its shares briefly hit an all-time record high of $21.29 on Wednesday.  

At face value, Brickworks’ half-year results were relatively flat with revenue falling 4% to $432 million and underlying net profit after tax down 10% to $90 million. However, from a broker perspective, these results beat expectations with the company’s property portfolio delivering a far stronger performance. 

Codan Ltd (ASX: CDA) 

The Codan share price is the gift that keeps on giving. The metal detector and communication electronics company has announced a stream of positive news in the past few months.

This includes a profit upgrade back in December 2020, the acquisition of Domo Tactical Communications in February 2021, an outstanding half-year results announcement during the February reporting season and another acquisition this month. Its acquisitions are both earnings accretive for FY21 and complement Codan’s core business segments. 

EML Payments Ltd (ASX: EML) 

Things seem to have just clicked for the EML share price in 2021. Its shares spent most of 2020 below their pre-COVID highs, chopping back and forth as shopping centre closures across Europe and the United States affected its core gift cards business. 

Its shares are on the comeback as revenues pivot into general-purpose reloadables such as gaming payouts, salary packaging and commission payouts. The company’s half-year results highlight its versatility despite challenging business conditions for gift cards. Its interim results highlighted a solid 61% increase in revenue to $95.3 million and a $30% increase in net profit after tax and amortisation to $13.2 million. 

On Wednesday, the EML share price surged to record all-time highs after the announcement of its acquisition of Sentenial Limited. Its shares briefly touched $5.80, briefly surpassing its pre-COVID high for the first time. 

Premier Investments Ltd (ASX: PMV) 

Soaring profits have pushed the Premier Investments share price to new highs. The company reported a 7.2% increase in global sales to $784.6 million and an 88.9% surge in net profit after tax to $188.2 million for the period of 27 weeks ended 30 January 2021.

This was driven by record sales from its boutique sleepwear business, Peter Alexander, and an uplift in margins. 

Reece Ltd (ASX: REH) 

Reece is another ASX 200 share that’s pushing into record territory after a solid set of half-year results. The leading supplier of bathroom and plumbing products delivered a 4% increase in sales revenue to $3,074 million while stronger margins saw its net profit after tax increase 17% to $123 million.

The Reece share price surged 4.83% on Wednesday, closing at an all-time record high of $18.88. 

More reading

• 2 ASX 200 shares to buy for growth
• EML Payments (ASX:EML) and these ASX shares just hit new highs
• ASX 200 rises, EML jumps, Zip falls
• ASX 200 up 0.25%: EML surges on acquisition news, Westpac’s APRA update
• Why EML, NextDC, Qantas, & Recce shares are racing higher

Kerry Sun 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 EML Payments. The Motley Fool Australia owns shares of and has recommended Brickworks and Premier Investments Limited. The Motley Fool Australia has recommended EML Payments. 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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Some ASX dividend shares have very big dividend yields thanks to their big payout ratios and the growth generated in recent times.

But, not only do the businesses below have large yields, but the businesses are also increasing the dividends per share too.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the largest Australian retailers of appliances and electronic devices. It has experienced a high level of demand over the last 12 months and this was shown in the latest FY21 half-year result.

It saw total sales go up 23.7% to $4.9 billion, earnings before interest and tax (EBIT) grew 76% to $462.8 million and net profit after tax (NPAT) grew 86.2% to $317.7 million. One area of particularly strong growth was an online sales increase of 161.7% to $678.8 million.

Both The Good Guys and JB Hi-Fi Australia saw large growth of its EBIT margin thanks to cost control. JB Hi-Fi Australia’s EBIT margin increased 214 basis points to 9.8% and The Good Guys’ EBIT margin went up 417 basis points to 8.7%.

The ASX dividend share’s board decided to increase the interim dividend by 81.8% to $1.80 per share – this represented 65% of net profit. It currently has a trailing grossed-up dividend yield of 7.4%.

Nick Scali Limited (ASX: NCK)

Nick Scali is another ASX retail share that is experiencing high levels of growth. HY21 sales went up 24.4% to $171.1 million. Sales order growth in January 2021 was up 47%, with the sales order bank at the end of the month being the highest of all time.

HY21 underlying EBIT grew 100.3% and the EBIT margin rose 1,270 basis points to 33.6%. Underlying earnings per share (EPS) also doubled, which allowed the board to grow the interim dividend by 60% to $0.40 per share.

The ASX dividend share continues to add new stores to its network. It’s expecting to open two further stores in the second half of FY21.

Nick Scali currently has a trailing grossed-up dividend yield of 8.7%.

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT) operated by Charter Hall Group (ASX: CHC) with the aim of generating rental income from tenants with a high quality property portfolio and long weighted average lease expiry (WALE). The properties are spread across different sectors including telecommunications exchanges, agri-logistics, industrials and logistics, office and long WALE retail.

The WALE was 14.1 years at 31 December 2020 at the ASX dividend share and the weighted average rental review (WARR) increase was 2.2%.

Charter Hall Long WALE REIT reaffirmed its FY21 operating EPS guidance of no less than 29.1 cents per security, representing growth of at least 2.8%. The target distribution payout ratio remains at 100% of operating earnings, representing a FY21 yield of at least 6%.

More reading

• How are these ASX 200 retail shares tracking after JobKeeper’s end?
• Will the Kogan (ASX:KGN) share price making a comeback in April?
• 2 major ASX retail shares trading near record highs
• These are the 10 most shorted shares on the ASX
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor Tristan Harrison 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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There are some really good S&P/ASX 200 Index (ASX: XJO) shares that could be good options to own for potential growth.

Some businesses have already reached a size where long-term compound growth is limited. However, there are a few ASX 200 shares that have very interesting growth prospects over the next year and beyond:

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is one of the largest healthcare ASX 200 shares, with a market capitalisation of almost $17 billion according to the ASX.

The business is generating strong operating leverage in its laboratory division. The huge level of COVID-19 testing has been enabled by historical investments in people and infrastructure (expertise, equipment, facilities, IT, supply chain and so on). The business has conducted more than 18 million COVID-19 PCR tests performed in around 60 Sonic laboratories globally.

Thanks to the high level of COVID-19 testing, half-year revenue grew 33% to $4.4 billion and net profit after tax (NPAT) rose 166% to $678 million.

The USA and Germany in-particular saw high levels of growth. The US division generated 39% organic revenue growth, despite base revenue (excluding COVID testing) being down 8%. The second wave impact was significantly less than the first. Germany saw organic revenue growth of 58% – Sonic is the largest provider of COVID-19 PCR tests in Germany, in 30 laboratories nationwide.

Even the Australia division saw 26% organic revenue growth, despite Australia’s COVID-19 situation being much more controlled than in the northern hemisphere. Base business revenue growth was 5%.

The ASX 200 share said that it’s in a strong position for future growth, with demand for COVID-19 PCR testing to continue into the foreseeable future. Management said that the underlying strong healthcare growth drivers are unchanged. Sonic has leading market positions in Australia, Germany, USA, UK and Switzerland.

At the current Sonic Healthcare share price it’s valued at 14x FY21’s estimated earnings according to CommSec.

Brickworks Limited (ASX: BKW)

The diversified property and building products business is seeing a recovery for its business and continued growth for its property trust.

Brickworks said that the pandemic has resulted in increased consumer demand for lower density living and this is resulting in a shift towards detached housing from multi-residential alternatives. This is favourable for Austral Bricks and Bristle Roofing, due to the relatively high usage of bricks and roof tiles in detached houses.

The ASX 200 share has been pro-active throughout the pandemic to accelerate several initiatives and ensure the business emerges stronger. All of Brickworks’ major Australian divisions saw growth of its earnings before interest and tax (EBIT). It continues to invest in its manufacturing plants to ensure market leadership.

In America, Brickworks has made strong progress on key strategic priorities. Significant ‘plant rationalisation’ activities were also accelerated through the pandemic, with a total of 16 manufacturing plants transitioning to 10. There has been higher demand for single family housing across the country. There was a strong recovery of demand during March, with improved weather and increased optimism of a stimulus-led, post-pandemic recovery. The daily order intake is now at pre-pandemic levels. Long-term growth is anticipated, once conditions normalise.

There’s a lot of potential with its property trust, with development activity going on at an unprecedented scale. Completion of pre-committed facilities over the next two years will result in a significant uplift of rental income and asset value, according to Brickworks. The trend towards online shopping and demand for more sophisticated facilities will help drive growth.

At the current Brickworks share price, it offers a grossed-up dividend yield of 4.1%.

More reading

• Why the Orocobre (ASX:ORE) share price is surging
• The National Storage (ASX:NSR) share price is at a 52-week high. Here’s why
• Should income investors buy Sonic Healthcare (ASX:SHL) shares?
• ASX 200 rises, EML jumps, Zip falls
• Why the Bubs (ASX:BUB) share price is up 5% today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia has recommended Sonic Healthcare 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 Western Areas Ltd (ASX: WSA) share price is on watch this morning following a preliminary production update. At yesterday’s market wrap, the nickel producer’s shares closed the day $2.13.

Let’s take a closer look and see how Western Areas performed for the stated period.

How did Western Areas perform?

Western Areas share price could be on the move today after the company delivered a robust performance for the March quarter.

In its announcement, Western Areas reported a significant improvement in both mine and milled physicals at its Forrestania operations in Western Australia. The company mined 4,236 Ni tonnes, resulting in strong nickel (Ni) in concentrate production. This reflected an increase of up to 20% quarter-on-quarter.

Western Areas achieved a grade of 3.6% Ni in total of the mined ore, representing a gain of up to 27% quarter-on-quarter.

Nickel produced in concentrate of 4,267 Ni tonnes, lifting 21% quarter-on-quarter due to higher mined grades and mill recoveries.

Words from the management

Western Areas managing director Dan Lougher commented:

As previously flagged to the market, we re-entered the higher-grade areas of the Flying Fox mine this quarter, and saw improved mined nickel grades from Spotted Quoll.

This result was setup by the significant development and rehabilitation of existing ore drives achieved during the previous December quarter, which allowed access to and mining of higher-grade ore tonnes in the March quarter.

The company stated that it remained focused on continuing the positive momentum into the final quarter of FY21. It expects that the development and rehabilitation work already undertaken will help contribute to attaining that goal.

Western Areas share price snapshot

The Western Areas share price is marginally higher, around 4%, over the past 12 months. However, the company’s shares have fallen close to 20% year-to-date, notably treading lower since the beginning of last month.

Based on current valuations, Western Areas commands a market capitalisation of roughly $670.2 million, with 314.6 million shares outstanding.

More reading

• These are the 10 most shorted shares on the ASX
• Why Accent, Fortescue, Western Areas, & Zip shares are tumbling lower
• Is this a better way to buy into the ASX mining supercycle?
• Here’s why the Western Areas (ASX:WSA) share price is sinking today
• Why the Western Areas (ASX:WSA) share price is in a trading halt

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

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