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The NRW Holdings Limited (ASX: NWH) share price is edging higher after announcing its subsidiary has been awarded a letter of intent (LOI). At the time of writing, diversified service provider’s shares are fetching $2.10, up 2.4%.

What did NRW announce?

Investors appear pleased with the company’s latest update, sending the NRW share price higher in mid-morning trade.

According to its release, NRW advised that its wholly-owned subsidiary, Primero Group, has executed a letter of intent (LOI) with Panoramic Resources Limited. The agreement will see Primero conduct a number of works. These will fall under an operations and maintenance contract at the Savannah Nickel project. This will also include servicing and ensuring the smooth running of the mine’s processing and surface infrastructure facilities.

The contract will be valid for an initial period of 3 years, with a possible 2-year renewal option. Additionally, it is expected that the new deal will generate $35 million in revenue for Primero.

NRW highlighted that Primero has been successfully expanding its business in the base and battery metals sectors. It anticipates that new pipeline opportunities in the operations and maintenance space could see it grow further.

NRW CEO, Jules Pemberton, commented:

This agreement further strengthens the annuity revenue stream that our Minerals, Energy and Technology division has been building through its various businesses.

RCR and its product support and maintenance business, DIAB through its shutdown and maintenance activities and now this significant award to Primero for a three year plus two-year option delivering operations and maintenance services to the Savannah Nickel Project.

Share price review

Over the past 12 months, the NRW share price has risen over 30%, but fallen around the same value year-to-date. The company’s shares started the year strongly, before fading away when reporting season came in February.

At the current share price, NRW commands a market capitalisation of about $958 million, with 456.3 million shares on issue.

More reading

• NRW (ASX:NWH) share price sinks despite new contract win
• Why the NRW (ASX:NWH) share price is on watch

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.

The post Here’s why the NRW (ASX:NWH) share price is edging higher today appeared first on The Motley Fool Australia.

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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a very strong gain. The benchmark index is currently up 0.9% to 6,890.7 points.

Here’s what has been happening on the market today:

Cleanaway share price jumps on acquisition news

The Cleanaway Waste Management Ltd (ASX: CWY) share price is jumping notably higher today after announcing an agreement to acquire Suez R&R Australia for $2.52 billion. Management expects the acquisition of the recycling and recovery business to provide additional scale and scope to create further operating leverage and multiple avenues to accelerate growth. In addition to this, Cleanaway expects the acquisition to be significantly accretive to earnings post synergies.

Tech shares rebound

It has been a very positive day for the Australian tech sector. The likes of Afterpay Ltd (ASX: APT) and Zip Co Limited (ASX: Z1P) are just two of a number of tech shares storming higher today. This follows a positive end to the week on Wall Street and an even more positive start to the week on Monday night. This has led to the S&P ASX All Technology Index (ASX: XTX) rising 3.5% so far today.

Job ads hit 12-year high

The Australian economy is bouncing back strongly from the pandemic judging by the latest job ads data. According to Australia and New Zealand Banking GrpLtd (ASX: ANZ) data, Australian Job Ads rose 7.4% month on month in March. This follows an upwardly-revised 8.8% month on month increase in February. The bank notes that ANZ Job Ads are now at the highest level since November 2008 and pointing to further sharp declines in the unemployment rate. The SEEK Limited (ASX: SEK) share price is up 3.5% at lunch.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Cleanaway share price with a 10% gain following its acquisition announcement. The worst performer has been the Incitec Pivot Ltd (ASX: IPL) share price with a 9% decline. This follows news that the Waggaman operation is expected to recommence production later than previously expected, impacting its earnings.

More reading

• Why the Incitec Pivot (ASX:IPL) share price tumbled 10% this morning
• Why the Regis Resources (ASX:RRL) share price is in focus
• Why Afterpay, Codan, Cleanaway, & Webjet shares are surging higher
• Why the Vocus (ASX:VOC) share price is surging this year
• Why the Chorus (ASX:CNU) share price is on watch

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended SEEK 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 Los Cerros Ltd (ASX: LCL) share price is off to the races today, up 20% at time of writing.

Below we take a look at the ASX resource share’s latest gold drilling results.

What gold drilling results did Los Cerros report?

The Los Cerros share price is soaring after the company reported high-grade gold drilling results at its 100% owned Quinchia Gold Project in Colombia.

According to the release, the Tesorito South diamond drill hole (TS-DH16) delivered an intercept of 460.9 metres at 1.11grams per tonne of gold from the surface. The company reported a broader intercept of 582.3m @ 0.94g/t Au from surface, easily its best drill results so far.

Los Cerros reported there is “significant potential for higher grade envelopes extending at depth to south west”, with porphyry mineralisation south-west of the fault raising “exciting questions at regional level”.

Commenting on the latest drill results Los Cerros Managing Director, Jason Stirbinskis said:

On a gram/metre basis TS-DH16 is the best hole ever recorded in the entire Quinchia district and has raised exciting questions about the potential scale of this gold system. The near surface (first 411m of this hole) has expanded to the south-west the modelled gold envelopes described by the high grade intercepts reported in the TS-DH02, ’14, ’11, ’15 drill fence and mineralisation still remains open to the south west.

Follow-up drilling will further explore this region of relatively sparse data. The company will offer further detail on interpretation of the porphyry suite intercepted below and south-west of the fault in coming weeks as we assimilate new drill data as it arrives.

Los Cerros is awaiting the assays for 4 other completed drill holes at Tesorito South. In the meantime, drilling continues at the Quinchia Project, with 2 diamond rigs at Tesorito South and 1 diamond rig at the company’s Chuscal prospect.

Los Cerros share price snapshot

If you bought Los Cerros shares 12 months ago, you won’t be complaining today. Over the past full year the Los Cerros share price has gained a whopping 780%. That compares to a gain of 34% on the All Ordinaries Index (ASX: XAO).

Year-to-date, the Los Cerros share price is up 35%.

More reading

• The IOUpay (ASX:IOU) share price is lifting today. Here’s why
• Why the Incitec Pivot (ASX:IPL) share price tumbled 10% this morning
• Why the Regis Resources (ASX:RRL) share price is in focus
• Brokers name 3 ASX shares to buy today
• These ASX retail shares continue to surge higher

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

The post Why the Los Cerros (ASX:LCL) share price is rocketing 20% today appeared first on The Motley Fool Australia.

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The IOUpay Limited (ASX: IOU) share price is lifting today after the company shared news of its latest agreement. IOUpay will partner with MYP1 Commerce to connect users of MYP1’s Smart point of sale (POS) system with IOUpay’s buy now pay later (BNPL) platform.

Today’s news comes at a good time for the IOUpay share price, which slumped last month. Its year to date gain fell from 205% at the end of February to 102.5% at the time of writing. Currently, its shares are up 3.9%, trading at 40 cents.

Let’s look closer at the BNPL provider’s new partnership.

IOUpay’s new POS integrated service

IOUpay has signed a strategic teaming agreement with MYP1 for a renewable year-long term within which MYP1 will integrate IOUpay into its Smart POS system, allowing merchants and customers to use the BNPL service seamlessly.

MYP1 is chiefly a provider of POS and payment systems in Malaysia and Southeast Asia. More than 15,000 merchants across Malaysia use MYP1-owned and maintained Smart POS systems.

Under the agreement, MYP1 will refer its merchants to IOUpay’s services, which will be integrated into MYP1’s Smart POS system.

The integration of IOUpay into MYP1’s Smart POS systems will allow contactless BNPL payments. IOUpay believes this will make it the preferred BNPL service for merchants.

The announcement stated most users of MYP1’s Smart POS systems were in-store merchants. Thus, the partnership won’t see its BNPL services extend significantly into the e-commerce field.

The integration of IOUpay’s service and MYP1’s Smart POS system will begin this month. It will initially be rolled out to 2,800 select merchants. Both companies plan to roll out IOUpay integrated Smart POS systems to all merchants using MYP1’s system in 2022.

Commentary from management

IOUpay CEO Khong Kok Loong welcomed the partnership, saying:

MYP1 represents a unique opportunity to fast track our market penetration across large numbers of qualified merchants seamlessly by our BNPL payment services now being offered as the major payment alternative to cards and e-wallets through MYP1’s existing merchants and Smart POS terminal installation base.

We see this as a mutually beneficial partnership to drive BNPL transaction volumes and smart POS terminal installations and build a highly active and loyal merchant network.

MYP1 CEO Chris Lee added:

We know the team at IOU well and believe their buy now, pay later platform offering will be well received by our merchants and their customers.

IOU’s BNPL service offering comes at a time when merchants and consumers are all moving to contactless payments so we are excited to see a whole new BNPL driven boost to payment volumes across our merchant networks from this partnership.

IOUpay share price snapshot

The past month has been challenging for the IOUpay share price. However, the past 12 months have provided a good amount of cushioning from volatility, with the company’s share price up an extraordinary 3,950% over that period.

IOUpay has a market capitalisation of around $212 million, with approximately 551 million shares outstanding.

More reading

• Why the IOUpay (ASX: IOU) share price tumbled 40% in March 
• Down 20% with no news, what’s with the Cirralto (ASX:CRO) share price?
• ASX tech shares cowering in shadow of NASDAQ bear market warning
• ASX 200 unmoved, Flight Centre soars, Afterpay keeps falling
• IOUpay and Zip were among the most traded ASX shares last week

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 The IOUpay (ASX:IOU) share price is lifting today. Here’s why appeared first on The Motley Fool Australia.

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The Incitec Pivot Ltd (ASX: IPL) share price is tumbling lower in early trade after an update on the Waggaman Ammonia Plant. At the time of writing, the Incitec share price is trading at $2.68, down 8.22%. 

Why is the Incitec Pivot share price under pressure?

Shares in the Aussie explosives, industrial chemicals, and fertiliser manufacturer are currently the worst performing amongst the S&P/ASX 200 Index (ASX: XJO).

The big catalyst was an update from its Waggaman ammonia plant. On 15 February 2021, Incitec expected to recommence operations at the plant by mid-March. This was after the first planned turnaround since commissioning the plant in 2016.

After mechanical completion of the turnaround on 6 March, Incitec shutdown the plant on 17 March following a dry gas seal failure and vibrations in the turbine.

Incitec said further investigations are underway into the root causes of both issues and repairs are also underway. Incitec now expects production to recommence at Waggaman by mid-April.

The update has seen investors push the Incitec Pivot share price lower, tumbling nearly 10 per cent in early trade. Incitec said there would be further adverse impact due to the delays.

The Aussie manufacturer is expecting an earnings before interest and tax (EBIT) impact of $36 million in FY2021. On a net profit after-tax basis, the total impact is $28 million per today’s release.

Incitec will depreciate the finalised $80 million turnaround cost over a four-year period. That depreciation impact has been incorporated in the FY2021 earnings updates.

Those numbers have put the Incitec Pivot share price under pressure as the S&P/ASX 200 Index climbs higher today. The benchmark Aussie index has gained nearly 1 per cent today in a strong return to trade after Easter.

Corporate Travel Management Ltd and Chorus Ltd (ASX: CNU) are among the other ASX 200 shares to fall in today’s trade.  Cleanaway Waste Management Ltd (ASX: CWY) was leading the gainers as at the time of writing.

More reading

• Why the Regis Resources (ASX:RRL) share price is in focus
• Why the Vocus (ASX:VOC) share price is surging this year
• Why the Chorus (ASX:CNU) share price is on watch
• UBS is calling time on the ASX iron ore supercycle
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Ken Hall 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.

The post Why the Incitec Pivot (ASX:IPL) share price tumbled 10% this morning appeared first on The Motley Fool Australia.

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The Regis Resources Ltd (ASX: RRL) share price has jumped higher this morning after an early morning announcement from the Aussie gold miner. At the time of writing, shares in Regis are trading for $3.02, up 1.68%.

Why is the Regis Resources share price climbing?

This morning, Regis provided an update on its Ben Hur maiden ore reserve located near Laverton in Western Australia. The Aussie miner said that the acceleration of exploration following the 2020 acquisition has grown the Mineral Resource by 34 per cent. That has allowed the declaration of the maiden Ore Reserve at Ben Hur.

The total Mineral Resource for the Ben Hur deposit is estimated to be 10.3 megatonnes (Mt) at 1.2 grams per tonne (g/tonne). This equates to a total of 390,000 ounces of gold. As a result of the update, the Regis Resources share price shot 2.7 per cent higher at the market open.

Regis’ Ore Reserve Estimate for Ben Hur found probable reserves of 3.5 Mt of ore. This will be mined at 1.1 g/tonne for a total of 130,000 ounces of gold. 

Shareholders appeared to receive this morning’s update favourably. Shares in the Aussie gold miner have been volatile in early trade while the S&P/ASX 200 Index (ASX: XJO) has climbed 0.8% higher after the Easter break. 

What about other ASX gold miners?

It’s been broadly good news across major Resources sector shares. The Newcrest Mining Ltd (ASX: NCM) has also shot 1.4 per cent higher in early trade. Additionally, St Barbara Ltd (ASX: SBM) shares have also climbed higher. 

However, the Incitec Pivot Limited (ASX: IPL) share price has slumped nearly 10 per cent lower to start the shortened trading week. That move comes after an pre-market update on its Waggaman Ammonia Plant.

Foolish takeaway

The Regis Resources share price has been volatile to start the week and remains on watch in Tuesday’s trade. Shares in the Aussie gold miner surged higher after an update on its Ben Hur site which included a significant expansion of the Mineral Resource.

More reading

• Why the Vocus (ASX:VOC) share price is surging this year
• Why the Chorus (ASX:CNU) share price is on watch
• UBS is calling time on the ASX iron ore supercycle
• 5 things to watch on the ASX 200 on Tuesday
• Top broker picks the best ASX shares to buy for the new quarter

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

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Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a number of broker notes.

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

Boral Limited (ASX: BLD)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and lifted their price target on this building products company’s shares to $6.30. This follows the announcement of the sale of its 50% share in the USG Boral business. Morgan Stanley notes that this is another positive in the transformation of Boral. It also suspects that other asset sales could be made, which could lead to further capital management. The Boral share price is fetching $5.87 on Tuesday.

Codan Limited (ASX: CDA)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this technology company’s shares to $17.00. This follows the announcement of the acquisition of Zetron for US$45 million last week. Macquarie is a fan of the acquisition and feels it gives Codan exposure to a complementary and attractive market. In addition to this, the recent launch of a key new metal detector could be a boost to sales. Previously, the company has entered into a strong upgrade cycle following the release of major new metal detectors. The Codan share price is up over 5% to $16.74 this morning.

Sealink Travel Group Ltd (ASX: SLK)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this travel and transport company’s shares to $10.30. According to the note, the broker has been looking into the New Zealand public transport industry. Macquarie sees opportunities for Sealink to expand into New Zealand through acquisitions. In addition to this, the broker feels the company is well-placed for further contract wins. The Sealink share price is trading at $9.51 today.

More reading

• Why Afterpay, Codan, Cleanaway, & Webjet shares are surging higher
• These were the best performing ASX 200 shares last week
• These were the best performing ASX 200 shares in the Q1 of 2021
• ASX 200 rises, Webjet sinks, Boral climbs
• ASX 200 up 0.25%: AMP names new CEO, Boral’s buyback, Webjet sinks

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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As the Australian economy begins to emerge from the other end of the COVID-19 pandemic, it’s worth taking a look at some companies that may now have significant tailwinds behind them.

Traditional brick and mortar retail was hit especially hard by lockdowns imposed across the country last year. However, many companies still found ways to reach new customers by expanding their digital sales channels. As the economy opens up again and consumers return to department stores and other traditional retail outlets, there is the potential for some brands to have truly banner years. Companies that expanded their market penetration through e-commerce during the pandemic may now even see an uptick in foot traffic as well.

We take a closer look at 3 ASX retail companies that have navigated the pandemic well.

Lovisa Holdings Ltd (ASX:LOV)

Lovisa sells trendy – but affordable – women’s jewellery and accessories. Sales plunged during lockdowns: first-half FY21 revenues were down 9.8% versus the prior comparative period (PcP) to $146.9 million, while net profit after tax (NPAT) plunged 22.6% to $21.5 million.

However, at $14.45 its share price is still pushing towards a new all-time high price. Despite the weak first-half result, Lovisa has reported a strong rebound in customer foot traffic in its Southern Hemisphere stores in the early stages of the second half. It also continued to pursue its international expansion plans throughout the pandemic, acquiring German wholesaler beeline GmBH (and its 80-plus retail outlets spread across Germany, Switzerland, the Netherlands, Belgium, Austria and Luxembourg).

City Chic Collective Ltd (ASX:CCX)

Plus size women’s fashion retailer City Chic Collective has been one of the surprising success stories to emerge from the pandemic. Despite the disruptions to retail trade, the City Chic share price has soared, and it is now up over 180% in the last 12 months.

First-half sales revenues jumped 13.5% versus PcP to $119 million, while NPAT increased by 24.8% to $13.1 million. Customer numbers also skyrocketed: the company claimed to have around 801,000 active customers by the end of the first half, an uplift of 56%.

The success was due in large part to the strength of its online sales channels. Digital sales made up 73% of total sales during first-half FY21, up from 53% for first-half FY20. And, like Lovisa, City Chic has continued to expand internationally throughout the pandemic. 45% of sales were generated in the Northern Hemisphere during the first half (up from just 29% for first-half FY20). The company also recently acquired UK high street brand Evans, signalling its intention to expand into more European markets.

Adairs Ltd (ASX:ADH)

Furniture and homewares retailer Adairs was one of the companies to benefit from the structural shifts that occurred during lockdowns. With people spending more time than ever in their own homes – including working from home, in many cases – homewares sales skyrocketed.

First-half FY21 total sales jumped 34.8% versus PcP to $243 million, with slightly over 37% made online, while NPAT skyrocketed 233.4% to $43.9 million. In fact, the company did so well that it made the decision to refund $6.1 million in Jobkeeper subsidies it received from the government.

The risk with Adairs – and other furniture retailers that blew up during the pandemic, like Temple & Webster Group Ltd (ASX:TPW) – is that the surge in homewares sales may have only been a temporary side-effect of the pandemic. However, Adairs reported that sales have continued to remain high throughout the early stages of the second half, so it will be interesting to watch how it performs for the remainder of FY21.

More reading

• These are the 10 most shorted shares on the ASX
• 2 impressive ASX shares to buy in April 2021
• 3 ASX shares to buy in April 2021
• 2 ASX dividend shares with very BIG yields
• 2 ASX shares rated as strong buys by brokers

Rhys Brock owns shares of Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia has recommended ADAIRS FPO and 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 88 Energy Ltd (ASX: 88E) share price was sliced in half on Tuesday morning after an update related to its Peregrine project in the National Petroleum Reserve in Alaska (NPR-A). 

At the time of writing, the 88 Energy share price is down 64% trading at 2.6 cents after closing at 7.3 cents on Thursday.

Project Peregrine update sinks the 88 Energy share price 

Project Peregrine is one of three 88 Energy projects in Alaska. Recent updates for Peregrine have been both a blessing and a curse. 

On 29 March, the company announced that it had detected potential hydrocarbon-bearing zones whilst conducting drilling operations for the Peregrine project.

The announcement acted like jet fuel for the already surging 88 Energy share price, which had run more than 300% in March, prior to the announcement. Its shares finished March up almost 700%, from 0.9 cents to just shy of 7 cents.

While the potential hydrocarbon-bearing zones excited investors, 88 Energy managing director Dave Wall noted that: 

Whilst there is still work to do to confirm a discovery, the results to date are encouraging and we look forward to providing an additional update on the wireline program in 7 to 10 days.

The announcement also included a cautionary statement that said: 

The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.

Why the 88 Energy share price is spewing today 

Today’s announcement updated the market with regards to the Peregrine operations. 

In its announcement, 88 Energy detailed its wireline program which was first used to identify potential reservoir and resistivity as well as provide an estimate of the mobility of the fluid present. The results were promising with multiple prospective zones identified, consistent with the shows and logs obtained while drilling. 

The company then attempted to take samples across the identified zones. It noted that “initial observations indicated the presence of an oil signature in the fluid using an optical fingerprint sensor in the downhole sampling tool, communication was established with the reservoir in the deepest zone of interest”. 

However, a power outage due to equipment failure and other challenges resulted in the company not being able to sample its two most prospective zones. Additional analysis of sidewall cores sand potentially further drilling may be required to confirm a discovery.

Wall commented: 

We appreciate that these early results may be difficult to interpret. That is because we do not yet have all the data required to allow interpretation.

This means some uncertainty remains; however, it is already clear that Merlin-1 has delivered by far the best outcome of any of the 5 wells drilled by 88 Energy in Alaska over the last 6 years.

More reading

• Airtasker and Zip were among the most traded ASX shares last week
• Here’s why the 88 Energy (ASX:88E) share price is accelerating 12% today
• Afterpay and Zip were among the most traded ASX shares last week

Motley Fool contributor Kerry Sun 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 Pure Hydrogen Corp Ltd (ASX: PH2) share price is fluctuating in morning trade, gaining 2% before dipping to its current level of 25 cents a share, down 2% on last Thursday’s close.

We take a look at the latest announcement from the ASX energy share below.

What did Pure Hydrogen report?

Pure Hydrogen shares are moving today after the company reported it has reached a term sheet agreement with Synergen Met Pty Ltd for a 50/50 Joint Venture (JV).

The new JV will use Synergen’s methane decomposition module to manufacture “turquoise hydrogen gas and value add carbon products” from methane at Pure Hydrogen’s 100% owned Venus coal seam gas (CSG) Pilot in Queensland.

Each module (initially there’ll be 1) can produce approximately 1,400 kilograms of hydrogen and 4,200 kilograms of value-add carbon product if they’re run around the clock.

The modules come in standard 12 metre shipping containers. Pure Hydrogen highlights this will enable them to become fully operational quickly and also enable the JV to place additional modules in areas with enough methane to “support the growing domestic and international hydrogen markets”.

According to the release, Synergen’s technology uses a “propriety plasma pyrolysis process” to decompose methane into hydrogen and solid carbon products. The process has the potential to emit virtually no greenhouse gases, if the electricity is provided from renewable sources.

Commenting on the JV agreement, Pure Hydrogen’s Managing Director Scott Brown said:

This is a very promising commercial development for Pure Hydrogen and for Synergen as we are combining proven technology with a methane resource to produce hydrogen and solid carbon products, which potentially adds another valuable revenue stream to Pure Hydrogen’s business and an exciting technology angle to Pure’s Strategy.

Pure Energy stated that the JV will reinforce its strategy to build a series of hydrogen storage and distribution hubs.

Pure Hydrogen share price snapshot

Pure Hydrogen shareholders made out well over the past 12 months, with shares in the ASX energy company up 390%. By comparison the All Ordinaries Index (ASX: XAO) is up 34% in that same time.

Year-to-date the Pure Hydrogen share price is up 172%.

More reading

• Why the Pure Hydrogen (ASX:PH2) share price sank 10% today

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

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