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After a strong start to the day, in afternoon trade the S&P/ASX 200 Index (ASX: XJO) has faded and is now deep in the red. At the time of writing, the benchmark index is down 0.55% to 6,761.7 points.

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

Blackmores Limited (ASX: BKL)

The Blackmores share price is down 6% to $78.39. This is despite there being no news out of the health supplements company today. However, last week analysts at Citi put a sell rating and $59.20 price target on its shares. They have concerns over its valuation, particularly given the prospect of increasing competition in the local market and weakness in the daigou channel.

Cleanspace Holdings Ltd (ASX: CSX)

The Cleanspace share price has crashed 55% to $2.01 following the release of a trading update. That update revealed that the respiratory protection equipment manufacturer has experienced a major slowdown in sales. According to the release, third quarter sales are expected to be $7 million. This compares to first half sales of $39.7 million, which average out to $19.35 million per quarter.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price has sunk 10% to $12.17. This appears to be due to concerns over online sports betting legalisation in New York. Deutsche Bank stated: “Comments from NY politicians, as reported by affiliate media, appear far more pessimistic than those of several weeks ago around the prospects of NY legalising online sports betting in this session.” This would be a big blow, as the market is expected to be worth US$1.35 billion by 2023.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price has continued its slide and is down 2.5% to $10.37. Investors have been selling the wine company’s shares this week after Chinese authorities confirmed that tariffs would be placed on Australian wine for at least the next five years. In respect to Treasury Wine, its portfolio has been hit with a 175.6% duty. Management previously warned that demand for its portfolio in China would be extremely limited while these measures are in place.

More reading

• Should you be concerned about the PointsBet (ASX:PBH) share price?
• ASX 200 down 0.15%: AGL to split into two, NAB’s 86 400 acquisition receives ACCC approval
• Why the CleanSpace (ASX:CSX) share price is diving 50%
• Will the ASX 200’s ‘China problem’ get worse?
• ASX 200 down 0.1%: Computershare raises $500m, REA Group announces acquisition

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 and recommends Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Treasury Wine Estates Limited. The Motley Fool Australia has recommended CleanSpace Holdings Limited and Pointsbet Holdings 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 Air New Zealand Limited (ASX: AIZ) share price is falling today after the company released its February investor report.

At the time of writing, the Air New Zealand share price is down 1.74%, trading at $1.69.

Let’s take a look at the Kiwi airline’s latest results.

What’s in the report?

In February, Air New Zealand carried just 621,000 passengers, a drop of more than 50% on the 1,363,000 passengers recorded in February 2020.

Its revenue per passenger kilometre (a transportation industry metric that shows the number of kilometres travelled by paying passengers) fell 83% from $3,015 million in February 2020 to just $379 million this February.

Meanwhile, its available seat kilometres have fallen 82% from the corresponding period last year. This February the airline has filled just 53% of its seats on planes, compared to 79% in February 2020.

Air New Zealand’s market update for March will give investors a better comparison on the early impacts of COVID-19 last year.

This report does, however, show an improvement on its January metrics, with 40,000 more passengers and a $1 million increase in revenue per kilometre. The large concern remains its ability to fill its seat capacity, which has fallen from January by 7%. 

Air New Zealand share price on a wild ride

From 17 January to 2 April last year, the Air New Zealand share price plummeted from $2.90 cents to just 80 cents, a staggering drop that has since recovered to its current price of around $1.50.

The last four months have been no less volatile, however. From a high of $170 in December, the price dropped to $1.40 in February, only to rebound back into the $1.70 region in mid-March before again falling to its current price.

Its actually risen 7% this month and is up a strong 57% against its industrials sector over the past year, also up 34% against the S&P/ASX 200 Index.

Trans-Tasman bubble a waiting game

Many investors will be awaiting the New Zealand government’s call on a timeline to restore flights between Australia and New Zealand, which is scheduled for April 6.

Inflating the Trans-Tasman bubble Air New Zealand would naturally increase Air New Zealand’s revenue, but the airline hasn’t been simply waiting on the news.

Air New Zealand announced it will run non-stop flights between Auckland and Hobart last week, Tasmania’s first regular international flight schedule in 23 years. Its also gearing up for flying to Australian overseas territories Norfolk Island and the Cook Islands.

More reading

• Revealed: 4 least profitable industries in Australia

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 PointsBet Holdings Ltd (ASX: PBH) share price is facing heavy selling pressure today. At the time of writing, shares in the company are down 9.32% to $12.26. 

We take a closer look at what might be driving down the PointsBet share price today. 

Why is the PointsBet share price being sold off?

A research note from Deutsche Bank said online sports betting legalisation in New York was “hanging by a thread”. On the issue, Deutsche Bank also stated that:

Comments from NY politicians, as reported by affiliate media, appear far more pessimistic than those of several weeks ago around the prospects of NY legalising online sports betting in this session.

The decision will be settled in the coming weeks. However, what was once an almost-certain outcome has now turned into a coin-flip. 

The uncertainty saw US gaming and sports betting shares including fall. This includes Draftkings Inc (NASDAQ: DKNG) and Penn National Gaming Inc (NASDAQ PENN) who finished overnight down 8.50% and 7.85%. 

In PointsBet’s half-year results presentation, the company hinted at a number of growth opportunities including expanding into New York and Canada. 

Why is New York so important?  

New York is seen as the cash cow for sports betting in the United States. While the state has legalised retail sports betting, online sports betting, more broadly speaking, has surged during COVID-19. 

PointsBet has not commented on the size of New York for quite some time. Additionally, an investor presentation from October 2019 still adds valuable perspective for the significant revenue opportunity in New York. 

Highlighting the US market opportunity and size, PointsBet notes that New York has an estimated market size in CY23 of US$1,350 million. The second down the list is Illinois at US$784 million and Ohio at US$599 million. 

What’s next for the PointsBet share price? 

PointsBet represents a richly valued, loss-making, growth company. Despite its market capitalisation of $2.2 billion, the company recorded a loss of almost $86 million for the half-year ended 31 December. 

The expectations are sky-high for the company to deliver outstanding growth in the near-term. For the most part, the company has been able to meet expectations with strong half-year results, recently securing market access in Pennsylvania and Mississippi, and a game-changing marketing deal with NBCUniversal. 

New York will vote to take place in the coming weeks. However, the PointsBet share price might have to brace for increased volatility. 

More reading

• ASX 200 down 0.15%: AGL to split into two, NAB’s 86 400 acquisition receives ACCC approval
• Up 13% this year, the Pointsbet (ASX:PBH) share price reflects expansion into new markets
• The ASX 200 keeps climbing, TPG drops on Teoh departure, AMP still has a CEO
• Why the PointsBet (ASX:PBH) share price will be on watch this morning
• Compared! How are ASX gaming share prices performing?

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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 Starpharma Holdings Limited (ASX: SPL) share price has come under pressure on Tuesday despite the release of a positive announcement.

In afternoon trade, the dendrimer products developer’s shares are down 4.5% to $1.99.

What did Starpharma announce?

This morning Starpharma announced that its Viraleze antiviral nasal spray has now been launched in the UK by LloydsPharmacy.

Viraleze is a broad spectrum antiviral nasal spray that contains astodrimer sodium (SPL7013), which is virucidal and irreversibly inactivates >99.9% of the virus that causes COVID-19 within one minute.

The company also notes that SPL7013 has been shown to be highly active against multiple strains of COVID-19, as well as a broad spectrum of other viruses. These include influenza, RSV, SARS, MERS, and HIV.

What now?

According to the release, Viraleze is now available for purchase in the UK online at LloydsPharmacy and will soon be launched instore.

At present, LloydsPharmacy plans to rollout Viraleze to their 1,400 UK pharmacies in April. It will also be made available through McKesson’s AAH wholesale division, which services a total of 14,000 independent pharmacies in the UK.

But the company won’t be stopping there. Starpharma also plans to roll the product out across Europe, and will seek registration for the product in other regions, including Australia.

Commenting on the deal with LloydsPharmacy and McKesson last week, Starpharma’s CEO, Dr Jackie Fairley, revealed that the company was very excited with the launch.

She said: “We are excited that VIRALEZE will be available from next week in the second largest pharmacy chain in the UK. The LloydsPharmacy/McKesson team shares Starpharma’s enthusiasm and commitment to bring VIRALEZE antiviral nasal spray to UK consumers as they emerge from their latest lockdown. LloydsPharmacy represents an ideal partner for this product.”

Why is the Starpharma share price tumbling lower?

While the above is a big positive, it was already largely factored in by the market following its previous announcement.

In light of this, investors may be taking a bit of profit off the table today after a strong gain by the Starpharma share price this year.

In fact, even after today’s decline, the Starpharma share price is up 30% since the start of the year.

More reading

• Starpharma (ASX:SPL) share price pushes higher on COVID-19 nasal spray update
• Why the Starpharma (ASX:SPL) share price is charging higher today

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 Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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 Wiluna Mining Corporation Ltd (ASX: WMX) share price is flat today despite positive updates on its flotation plant construction, mineral drilling project and renewable power studies.

The Perth-based gold mining company controls more than 1,600sq km of the Yilgarn Craton in the Northern Goldfields of Western Australia. 

After dropping slightly this morning, the Wiluna share price has returned to where it started today and is trading at 99 cents at the time of writing. 

Let’s take a closer look at what’s driving the Wiluna share price today.

What did Wiluna announce?

In its latest development update, the company revealed its stage 1, 750 kilotonne-per-annum flotation plant construction and mine development was on schedule, with the mineral resource drilling for its stage 2 feasibility study also on track.

Wiluna’s renewable power studies to supplement gas power generation are in progress, in line with the growing trend across the basic materials sector to diversify into renewable energy.

The company says its stage 2 feasibility study into a metallurgical test work program is also underway for additional design data and variability testing.

In addition, Wiluna has signed an agreement to enter a five-year alliance with Byrnecut Australia Pty Limited for the construction and operation of an underground mine.

Management commentary

Despite the Wiluna share price nearing 10-year lows, executive chair Milan Jerkovic was bullish regarding its progress.

Outstanding progress has been made by our projects and operations teams and key contractors as we prepare to ramp up underground operations to supply sulphide ore feed to the new flotation concentrator currently under construction at Wiluna.

Ensuring the success of these two activities through 2021 is the primary focus of our business as our people work to deliver upon our promise to transform the Wiluna Mining Centre into a significant producer of gold doré and gold in concentrate.

At the same time, we are drilling to expand our resources and reserves for inclusion in the Stage 2 Feasibility Study due to be completed by the end of this year. We continue to explore ways to mine and process more efficiently, sustainably and profitably for the benefit of our shareholders and stakeholders.

Mr Jerkovic emphasised the importance of partnerships with leading industry players. He welcomed the support of GR Engineering Services for process engineering, plant design and construction, and Byrnecut Australia to construct and operate the mine and offtake partners Polymetal and Trafigura. 

About the Wiluna share price

Last week, the gold miner received investor commitments for $21.5m as part of an $80m funding package for a new West Australian gold mine.

Its ongoing drilling campaigns have also seen a 142 per cent increase in the contained gold within the company’s mineable underground ore reserves. There has also been no negative press about the company for some time now.

But it hasn’t been a great six months for the miner, with shares falling from a high of $2.18 on 23 September 2020 to their current level of 99 cents. The Wiluna share price is down 8.76% this week, 15.02% this month and 28.78% this year to date.

It’s also down 42.06% against the basic materials sector – a sector that has boomed thanks to strong iron ore prices.

More reading

• AGL Energy (ASX:AGL) share price slides after latest announcement
• Leading brokers name 3 ASX shares to sell today
• Amazon scores a big NFL merchandise deal
• US markets just hit an all-time high. Is the ASX 200 next?
• Here’s why the BCI Minerals (ASX:BCI) share price just jumped 5%

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 AGL Energy Limited (ASX: AGL) share price dropped after the Victorian government announced it will prevent the company from constructing a gas import terminal and pipeline at Western Point.

At the time of writing, shares in the energy producer are trading for $9.91, down 2.56%. However, the share price was up in morning trade on news the company would split, opening at $10.43.

For comparison, the S&P/ASX 200 Index is down 0.3%.

Let’s take a closer look at the Victorian government’s decision and AGL’s response.

Victoria prevents Crib Point Project — cites the environmental impact

The AGL share price is responding badly to today’s news. In a statement this morning, the Victoria’s Labor government announced it would not allow the Crib Point gas terminal and pipeline to Pakenham to proceed.

The state’s planning minister, Richard Wynne, said the project would have unacceptable environmental impacts.

It’s very clear to me that this project would cause unacceptable impacts on the Western Port environment and the Ramsar wetlands – it’s important that these areas are protected.

Ramsar wetlands are internationally important wetlands that are “representative, rare, or unique”, according to the Commonwealth government.

In October 2018, the planning minister held an inquiry into the project to examine its potential environmental impacts. At the time, the minister cited the potential for significant environmental effects for the inquiry.

“This has been an exhaustive, open and transparent process and this is the right outcome for the local community, the environment and Victoria as a whole,” Mr. Wynne said of the process.

AGL responded to the decision in a statement to the ASX. In it, AGL says it is “reviewing and considering its position in relation to the Minister’s determination.”

Additionally, the company estimates it has spent $130 million to date on the now presumably abandoned project.

AGL to split

As stated earlier, AGL announced this morning it intends to split its business in 2. Thus, “New AGL” will focus on energy retailing. “PrimeCo” on the other hand, will be an electricity generator. The news was initially a boon for the AGL share price.

In a statement, the company CEO and Managing Director, Brett Redman, said:

The proposed structural separation would give each business the freedom, focus and clarity to execute their own respective strategies and growth agendas, while playing an equally important, but different, role in Australia’s energy transition.

AGL share price snapshot

The AGL share price has dropped 40.22% since this time last year. It is one of a few companies that continue to struggle because of the COVID-19 pandemic.

AGL has a market capitalisation of $6.3 billion.

More reading

• ASX 200 down 0.15%: AGL to split into two, NAB’s 86 400 acquisition receives ACCC approval
• Why AGL, Digital Wine, REA Group, & Xero shares are charging higher
• AGL (ASX:AGL) share price higher on structural separation plans
• What’s happening with the Damstra (ASX:DTC) share price?
• What’s with the AGL Energy (ASX:AGL) share price today?

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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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

JB Hi-Fi Limited (ASX: JBH)

According to a note out of Morgan Stanley, its analysts have downgraded this retailer’s shares to an underweight rating with a reduced price target of $46.00. The broker made the move partly on valuation grounds after a strong gain took its shares close to all-time highs. In addition to this, Morgan Stanley has suggested investors be cautious when it comes to the household goods part of the retail sector. Particularly given how this area of the market benefited from early panic buying 12 months ago. This means JB Hi-Fi will now be cycling very tough comps. The JB Hi-Fi share price is fetching $51.79 today.

Pilbara Minerals Ltd (ASX: PLS)

A note out of Ord Minnett reveals that its analysts have retained their sell rating but raised their price target on this lithium producer’s shares to 75 cents. According to the note, the broker has lifted its price target to reflect a recovery in demand for lithium and rising prices. However, even after factoring this in, Ord Minnett still believes that the company’s valuation is stretched at the current level. The Pilbara Minerals share price is trading at $1.03 this afternoon.

Synlait Milk Ltd (ASX: SM1)

Analysts at Morgans have retained their reduce rating and cut the price target on this dairy processor’s shares to $2.58. This follows the release of Synlait’s underwhelming half year result on Monday. According to the note, Morgans has downgraded its earnings estimates to reflect management’s guidance and a slower than expected recovery over the coming years. In addition to this, the broker appears to have a few concerns over its balance sheet. The Synlait share price is trading at $3.15 on Tuesday afternoon.

More reading

• ASX 200 dips lower, Webjet drops, REA bids for Mortgage Choice
• Why Immutep, Inghams, REA Group, & Synlait shares are sinking
• What’s happening with ASX lithium shares as battery-grade lithium prices push higher?
• These are the 10 most shorted shares on the ASX
• Synlait (ASX:SM1) share price on watch after reporting huge profit decline

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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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.

Shortly after inking a deal as the exclusive broadcaster of Thursday Night Football games through its streaming service, Amazon (NASDAQ: AMZN) has secured another alliance with the NFL to carry an expanded range of league-related merchandise.

Sportico reports most officially licensed brands on the NFL website are now available on Amazon, too.

Among the many brands now appearing on Amazon for the first time, Fanatics is one potentially getting a significant boost from the partnership.

The licensed sports merchandise company is now valued at $12.8 billion after a fresh round of funding from Silver Lake Partners announced yesterday, which added $320 million to the privately held company’s war chest.

Investors have been waiting impatiently for a Fanatics IPO for some time, but a spokesman remarked yesterday that while “an IPO is clearly an available option to us, there is no update on any timeline.” Expansion to Amazon’s colossal marketplace could make the company even more attractive as an initial public offering.

The official provider of on-field NFL apparel, Nike (NYSE: NKE), is notably left out in the cold by the new pact, Sportal reports. Nike axed its first partnership with Amazon back in November 2019, possibly partly over Amazon’s alleged inability to prevent the sales of fake Nike items by third-party sellers.

Neither Amazon nor the NFL has yet commented publicly on the new partnership, so its duration and exact terms remain unknown for now.

Amazon is continuing its aggressive expansion policy in everything from sports streaming to backing the IPO of food delivery company Deliveroo, though it is also drawing some criticism for reportedly imposing intrusive monitoring of delivery drivers that even includes a collection of biometrics such as yawning.

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

More reading

• 2 top ASX ETFs to buy right now
• Amazon reportedly demands that delivery drivers submit to invasive biometric surveillance or be fired
• How to counter the ASX 200’s Achilles heel
• Why it’s a great time for ASX investors to buy US shares
• When dividends can be a bad thing for an ASX share

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Rhian Hunt 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 Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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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Upon awakening this morning, ASX investors were treated to the news that the US share market had, overnight our time, made yet another new all-time high. Yes, the Dow Jones Industrial Average (INDEXDJX: .DJI) closed at 33,171 points this morning, its highest-ever closing level.

The S&P 500 Index (INDEXSP: .INX) also had a top day, coming tantalisingly close to 4,000 points during intra-day trading when it hit a high of 3,981 points for the first time.

What is happening in the US?

You know that there are worse problems to have when all investors are worried about is higher inflation and interest rate hikes down the road. That seems to be the prevailing theme of the current state of the US markets. The US political scene is also likely to be adding to the optimism. Markets have barely digested the fulls cope of the Biden administration’s mammoth US$1.9 trillion stimulus package that only came into effect this month. Most Americans would have received a US$1,400 cheque over the last week or two, which wouldn’t have hurt either.

And according to Forbes, the President is now reportedly turning his attention to a new, multi-trillion infrastructure spending bill, which will be very accommodating for more economic growth if it passes Congress.

Best of all, the US vaccine rollout is going exceptionally well. This week, the White House stated that 90% of adults in the US will be eligible for vaccination by 19 April, with 90% of Americans having a vaccination site within 5 miles of where they live. No wonder the US markets are feeling bullish.

However, not all US shares are feeling the love. The Nasdaq Composite (INDEXNASDAQ: .IXIC) is the elephant in the room. Investor shave long been used to the Nasdaq topping the other US benchmark indexes. Just to illustrate, the S&P 500 is up 91.6% over the past five years, while the Nasdaq Composite is up 169%. Yet the Nasdaq is down more than 7% since 12 February, while the S&P 500 is up almost 1%.

What about the ASX 200?

So why isn’t any of this optimism flowing through to the S&P/ASX 200 Index (ASX: XJO)? Well, it’s worth noting that the ASX 200 is up 1.5% over the past five trading days. This comes even though it seems to be having a weak day today. But the fact remains that the ASX 200 is not even close to overcoming its pre-COVID high of 7,162 points. That’s still more than 5% away (the US markets passed their pre-COVID high in August last year).

Well, we could probably explain this by comparing the two markets. The US has just pushed ‘go’ on major new stimulus. Our stimulus programs like JobKeeper are winding down. And our own vaccine rollout plan is a little behind compared to America’s. 

Still, the ASX 200 is up 31% over the past 12 months. That’s worth a lot in itself!

More reading

• Which is the better investment: An ASX share portfolio or an index fund?
• ASX 200 down 0.15%: AGL to split into two, NAB’s 86 400 acquisition receives ACCC approval
• Australia’s first cryptocurrency fraud case filed to the Federal Court
• ASX 200 dips lower, Webjet drops, REA bids for Mortgage Choice
• Will the ASX 200’s ‘China problem’ get worse?

Motley Fool contributor Sebastian Bowen 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 BCI Minerals Ltd (ASX: BCI) share price is up by 5% today after the company announced it has awarded up to $90 million in contracts to construction companies and support infrastructure arrangements for its Mardie Salt and Potash Project.

Despite securing a large loan, the contracts are currently funded from BCI’s existing strong cash reserves and continuing royalty income from its Iron Valley holdings.

The contract for initial ponds is awarded to WBHO Infrastructure, the Australian subsidiary of international civil construction expert, WBHO Construction. The contract for the Project Management Contractor (PMC) role awarded to reputable WA-based
project and construction management company, Engenium.

Engenium brings local expertise to the role, with offices and teams currently based in Perth and Karratha. Neither of these companies are ASX listed. All of these contract prices fall within BCI’s July 2020 Definitive Feasibility Study (DFS) cost estimates.

BCI Minerals share price strong on Mardie project

The BCI Minerals share price has risen over 100% over the past 12 months on strong iron ore prices, but the potash industry allows the company to further diversify.

Mardie is a West Australian region just south of Karratha, which BCI earned a $450 million loan from the Northern Australia Infrastructure Facility to mine in December last year, for a period of 15 years.

 The construction contracts include initial construction of the large-scale trial pond scheduled to commence in April, as well as construction of evaporation ponds 1 and 2. The total earthworks volume in this scope is approximately 800,000 cubic metres over an area of 24 square kilometres. 

Commenting on the contracts, BCI’s managing director Alwyn Vorster said:

The award of the initial earthworks contract in particular represents a key milestone in BCI’s progress toward main construction and demonstrates Board confidence in Mardie’s development pathway. These contracts will be initially funded from BCI’s healthy cash balance and strong Iron Valley royalty income.

Salt and potash

Potash is expected to become a particularly valuable industry for Australia due to its use in horticulture. BCI believes Mardie “will be a globally significant Tier 1 salt and sulphate of potash project that is forecast to generate robust cash flows over an operating life of at least 60 years.”

The Northern Australia Infrastructure Facility launched an independent assessment, which forecasted significant benefits to the northern Australian region over Mardie’s construction and operating life. Mardie will have a peak construction workforce of approximately 500 people and a permanent operating workforce of around 200 people.

At the time of writing, the BCI Minerals share price is sitting at 32 cents a share.

More reading

• De Grey (ASX:DEG) share price falters despite new gold discovery
• Why the Calix (ASX:CXL) share price is eyeing record highs
• Why the Digital Wine (ASX:DW8) share price has surged 31% today
• Is the Fortescue share price ring-fenced by Twiggy and its climate targets?
• It’s official – Why RXP Services (ASX:RXP) shares de-listed from the ASX

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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