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The Hawkstone Mining Ltd (ASX: HWK) share price stormed more than 35% higher in early trade today. The price action follows a positive announcement released this morning.

At the time of writing, the Hawkstone share price is trading 18.9% higher at 4.4 cents after hitting an intra-day high of 5.2 cents.  

Here’s why investors are jumping on Hawkstone shares today.

Battery grade lithium carbonate produced

In its release, Hawkstone advised it has completed an initial metallurgical testing program. The company conducted testing on lithium-mineralised sedimentary material from the company’s Big Sandy Lithium Project in the US state of Arizona.

Hawkstone announced that testing had produced lithium at 99.8% Li2CO3 purity. The company also noted high lithium recoveries of 90.7% while removing impurities with minimal lithium losses.

As a result, the product meets the purity specifications of major international battery manufacturers. In addition, the results exceed the Benchmark Mineral Intelligences battery grade of greater than 99.5% purity.

Hawkstone’s management noted that the results were highly significant and would enable further testing and a pilot plan design.

Hawkstone managing director Paul Lloyd commented:

We have a potentially large lithium resource and are able to produce high quality product in a market with a rapidly increasing demand and price.

How has the Hawkstone share price performed?

The Big Sandy Project is Hawkstone’s flagship lithium project boasting 320,700 in joint ore reserves (JORC). The company also operates the Lordsburg Project in New Mexico.

The Hawkstone share price is currently trading more than 385% higher in 2021. Shares in the lithium miner have surged after opening the year at around 1.0 cent each, hitting a 52-week high of 6.4 cents earlier in the year.

Investors have been flocking to buy shares in Hawkstone, given the global demand for battery grade lithium. According to the company, surging lithium prices are the result of a changeover from carbon-based energy to green alternatives.

In today’s announcement, Hawkstone noted that the Benchmark Mineral Intelligence on 15 March quoted a price of US$12,625 per tonne of lithium with greater than 99.5% purity.

Following today’s announcement, Hawkstone expects permit approvals within 30 days, with drilling ready to mobilise immediately.

More reading

• Victoria to tax electric vehicles? What this could mean for ASX lithium shares
• These are the top performing ASX lithium stocks in 2021 so far
• Why the Hawkstone Mining (ASX:HWK) share price opened 43% higher today

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

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Piedmont Lithium Ltd (ASX: PLL) has announced the successful completion of its underwritten public offering. This consists of 1.75 million of its American Depository Shares (ADS) with gross proceeds of US$122.5 million or A$159.1 million. Each ADS represents 100 of the company’s ordinary shares listed on the ASX. 

Fresh funds to drive Piedmont Lithium operations 

Piedmont is working through a number of prerequisites to emerge as the only US integrated hydroxide from the spodumene project. 

The company’s 25,000-meter drill program is underway and expected to provide a mineral resource update in April 2021. Piedmont is targeting the completion of its infill drilling operations by August 2021. 

Coinciding with drilling activities, a definitive feasibility study (DFS) is scheduled for completion in the September quarter. The completion of an integrated DFS will be the key to advancing the project financing and construction phase.

If all things go to plan, the company expects construction operations to be completed in 2022. Additionally, Piedmont expects the lithium chemical plan to be completed in 2023.

A step closer to make Nasdaq primary listing 

The completion of Piedmont’s public offering takes the company one step closer to redomicile its shares. This will involve a transfer from Australia to the US. 

Additionally, this move will be in-line with the company’s strategy to grow its US investor pool. It will also leverage cheaper funding from the world’s largest economy.

Similarly, Mesoblast Limited (ASX: MSB) has taken a similar approach in listing on the Nasdaq. Ultimately, this will help the company overcome the significant capital burden of clinical trials to advance its portfolio of medicines.

Piedmont will also likely require additional financing after the completion of its drilling and DFS to fund the construction of its lithium plant. A primary listing in the US would therefore help the company diversify and de-risk both current and future funding requirements.

More reading

• Piedmont Lithium (ASX:PLL) shares in trading halt after proposed US public offering
• Victoria to tax electric vehicles? What this could mean for ASX lithium shares
• These are the top performing ASX lithium stocks in 2021 so far
• Why the Piedmont Lithium (ASX:PLL) share price is zooming 9% higher today
• Why Afterpay, Piedmont Lithium, ResApp, & Santos are charging higher

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 Investigator Resources Ltd (ASX: IVR) share price is on the move today, up 1.5% in early trade but now trading 1.2% lower at 8.2 cents.

We take a look at the ASX resource share’s latest silver drill results.

What did Investigator Resources report?

The Investigator Resources share price is slipping this morning despite the company reported promising new silver assay results at its 100% owned Paris Silver Project, located in South Australia.

The latest results come from a 20,500-metre infill drilling campaign completed in December.

Topping the high-grade results was 1 metre at 8,210 grams of silver per tonne from 61 metres.

Investigator Resources said other significant results included:

– 19m @ 561g/t silver from 55m in hole PPRC657 (on Line -0.25); including

• 8m @ 1,240g/t silver from 59m; including

– 19m @ 227g/t silver from 96m in hole PPRC678 (on Line -0.5); including

• 14m @ 290g/t silver from 96m

The company said these results support the silver grade and mineralisation extension from previous exploration assays, with the potential for mineralisation extension to the east and west.

What did management say?

Commenting on the drill results, Investigator’s managing director Andrew McIlwain said:

Reporting the highest-grade intersection of the 2020 infill drill program in Line -0.25 is really encouraging as we are still seeing significant mineralisation in the southern most line of drilling completed in this program, a further 25m south in Line -0.5.

We are confident that the results reported here continue to support our view of the improved continuity of grade and confidence in location of mineralisation in the Paris Silver Project. As previously mentioned, the continuing trend of high-grade mineralisation observed to the south of previously reported results bodes well for inclusion in the upcoming re-estimation of the resource.

McIlwain added that Investigator now needed to put the results together and complete its revised resource estimate for the Paris Silver Project.

The company expects to provide the revised resource estimate before May.

Investigator Resources share price snapshot

The Investigator Resources share price has shot the lights out over the past 12 months, up an eye-popping 740%. That far outpaces the 47% gain posted by the All Ordinaries Index (ASX: XAO).

Year-to-date, the Investigator Resources share price is down 7%.

More reading

• Why Alcidion, GrainCorp, Premier Investments, & Xero are storming higher
• Clinuvel (ASX:CUV) share price falls despite positive update
• Down 18%: Is the CSL (ASX:CSL) share price a buy?
• Droneshield (ASX:DRO) share price moving on multiple product orders
• Rio Tinto (ASX:RIO) looks to avoid past wrongs with Indigenous Advisory Group

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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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. At the time of writing, the benchmark index is up a decent 0.45% to 6,775 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

Alcidion Group Ltd (ASX: ALC)

The Alcidion share price has jumped a sizeable 9% to 30.5 cents after announcing a new contract win. According to the release, the healthcare technology company has signed a contract with East Lancashire Hospitals NHS Trust for its Patientrack and Smartpage solutions. The contract is estimated to be worth a total of $2.2 million over five years.

GrainCorp Ltd (ASX: GNC)

The GrainCorp share price is up over 2% to $4.82. Investors have been buying the grain exporter’s shares after it announced new operating initiatives that are expected to boost its earnings. According to the release, GrainCorp is forecasting a $25 million boost in annualised EBITDA by 2023-24 thanks to these initiatives.

Premier Investments Limited (ASX: PMV)

The Premier Investments share price is up almost 3% to $23.85 following the release of its half year results. The retail conglomerate reported a 7.2% increase in global sales to $784.6 million for the half. A key driver of this growth was the Peter Alexander business which delivered a 43.4% increase in sales to a record $207.7 million. On the bottom line, thanks to improved margins, the company’s first half net profit after tax jumped 88.9% to $188.2 million.

Xero Limited (ASX: XRO)

The Xero share price is up 3.5% to $125.48 after announcing a new acquisition. The business and accounting platform provider is acquiring e-invoicing infrastructure business Tickstar for up to SEK 150 million (~A$22.9 million). Sweden-based Tickstar allows organisations such as Xero and its customers to connect to a global e-invoicing network. This enables faster and more secure transactions.

More reading

• Why is the Premier Investments (ASX:PMV) share price on the rise?
• Why the Alcidion (ASX:ALC) share price is surging 5% higher
• Xero (ASX:XRO) share price higher after announcing new acquisition
• Why the GrainCorp (ASX:GNC) share price is on watch today
• 8 ASX 200 shares rated as ‘outperform’ by brokers

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 Alcidion Group Ltd. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended Alcidion 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 Clinuvel Pharmaceuticals Limited (ASX: CUV) share price is tumbling in early morning trade. This comes despite releasing an update to the market. At the time of writing, the biopharmaceutical company’s shares are swapping hands for $27.99, down 2.3%.

What did Clinuvel announce?

The Clinuvel share price is being weighed down by investors despite the company’s positive announcement.

According to this morning’s release, Clinuvel advised that it has now expanded its DNA repair program. The clinical trials will now evaluate afamelanotide in skin cells which have been damaged by ultraviolet (UV) and sun exposure. Patients suffering from rare diseases such as XP-V and XP-C will be included in the study.

Following an agreement by clinical and academic experts, Clinuvel will seek to evaluate the safety and efficacy of afamelanotide.

The company explained how UV radiation damages skin cells, causing defects of the DNA helix. It noted that if left unrepaired, chemical changes to DNA could replicate, thus leading to irreversible damage (photoaging). Continued exposure could also progress to skin cancer, including melanoma.

XP patients in particular have genetic defects that contain impaired DNA repair processes. Thus, leading to an extreme risk of skin cancer. This is unlike most individuals who are able to protect themselves for UV damage and repair cellular DNA.

Afamelanotide is an active ingredient in SCENESSE. Moreover, it improves the function of skin cells that have been damaged. Clinuvel hopes that conducting trials with afamelanotide will produce the first positive results sometime this year.

Management commentary

Clinuvel chief scientific officer Dr. Dennis Wright commented:

XP patients are at extreme risk of skin cancer – up to 10,000 times that of the general population – due to their inability to repair damage caused by UV and sunlight, known as photodamage.

Afamelanotide has been shown to protect skin from UV and light, and repair photodamage. We are now working to confirm this concept in clinical trials with both XP patients and healthy volunteers.

About the Clinuvel share price

The Clinuvel share price has gained over 60% since this time last year. Currently, the share price is up 25% year-to-date. It’s worth noting that the company’s shares reached a 52-week high of $28.80 earlier this month.

Based on valuation grounds, Clinuvel commands a market capitalisation of around $1.38 billion, with 49.4 million shares on issue.

More reading

• ASX 200 Weekly Wrap: Inflation fears hold ASX down
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• These were the best performing ASX 200 shares last week

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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Is the CSL Limited (ASX: CSL) share price a buy right now? It has dropped around 18% since November 2020, though it went as low as $246 earlier in the month.

What has been going on with the CSL share price?

A key problem for CSL over the last year has been the difficulty in collecting plasma.

CSL said that COVID-19 is adversely impacting plasma collections. The collection volumes in December 2020 was only around 80% of what it collected in December 2019. The healthcare giant is also suffering from incurring additional collection costs to get that plasma. This is important because it’s a key part of the business.

The healthcare giant is doing a number of initiatives to try to help the plasma division. It is doing more targeted marking initiatives to increase collections, it’s adopting new technology and it’s trying to “satisfy donors” with a positive experience.

CSL believes the roll out of COVID-19 vaccines will increase mobility and this could help collections.

The company has also reduced the plasma hold period from 60 days to 45 days.

CSL continues to rollout new collection centres which should boost the overall collection volume. It opened 17 new centres in the first half of FY21, with 12 expected to open in the second half. CSL boasted that it has the largest and most efficient centres in the industry.

The overall FY21 half-year result was largely strong. Revenue increased 15% in constant currency terms. Seqirus revenue jumped 38% thanks to significant demand for seasonal influenza vaccines and albumin sales went up 93% as China sales normalised thanks to a transition in its distribution.

The bottom line net profit after tax (NPAT) grew 44% in constant currency terms to $1.8 billion.

Where to now for the CSL share price?

CSL is expecting that the FY21 result will be heavily skewed to the first half. Around 80% of Seqirus sales in the first half and costs falling more evenly over the year – leading to a loss for the division in the second half.

Albumin sales are normalised after the transition, but plasma collections have constrained sales and elevated costs.

CSL continues to invest in research and development – it’s expecting to spend around 10% to 11% of revenue, in line with guidance.

But CSL did suggest that multiple, large late stage R&D programs are underway providing the potential for new growth opportunities.

But FY22 immunoglobulin and albumin sales are reliant on current plasma collections and cycle times.

The company says that it’s well placed to emerge strongly when the COVID-19 crisis recedes.

What do brokers think?

In recent weeks, some brokers have turned positive on the CSL share price potential after its decline.

For example, Morgans has a share price target for CSL of just over $300 and it thinks its shares look better value now. It also suggested that the Seqirus business could see higher demand for an extended period due to the demand to protect against the normal annual flu season.

Credit Suisse just changed its rating on CSL shares to a buy with a price target of $315. Whilst the broker is aware that CSL could face disruption in the plasma sector from competition with new products, there is still a strong worldwide demand for plasma and CSL could keep growing regardless of that.

On Credit Suisse’s numbers, the CSL share price is valued at 37x FY21’s estimated earnings.

More reading

• Is now the time to invest into the CSL (ASX:CSL) share price?
• How to counter the ASX 200’s Achilles heel
• CSL (ASX:CSL) share price up after AstraZeneca vaccine approved for use in Australia
• ASX 200 Weekly Wrap: Inflation fears hold ASX down
• 3 five-star ASX shares to buy in March

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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 DroneShield Ltd (ASX: DRO) share price is on the move this morning after announcing it received multiple orders for its latest product, the DroneSentry-X.

At the time of writing, the DroneShield share price is trading hands 3% higher at 16.5 cents a share.

It protects, it attacks

The DroneSentry-X is an on-the-move counter unmanned aerial system (C-UAS) that can be mounted on transportation such as vehicles and ships.

Customers ordered these systems in North America and Southeast Asia regions in both detection-only and detect-and-defeat variations.

Watch the product video at: https://t.co/iLp1WrR8Ua#CUAS #counterdrone #UAS #UAV #detection #disruption #onthemove

— DroneShield® (ASX:DRO) (@DroneShield) February 24, 2021

https://platform.twitter.com/widgets.js

According to the update, the orders totalled $500,000 and are an initial trial purchase for the systems. Additional follow-up orders are already in discussions, with amounts yet to be confirmed. Proceeds from these orders are expected to be received throughout March, June, and September quarters.

This positive development comes a week on from the company winning a government contract from a Five Eyes country. That order was valued at $1 million, exceeding the original $500,000 trial order in June 2020.

CEO commentary and recent results

Prior to jump in share price this morning, DroneShield CEO Oleg Vornik commented on the orders:

DroneSentry-X offers a truly unique capability for directional awareness of asymmetric warfare vectors such as nefarious UAS used for reconnaissance and payload delivery.

With DroneShield’s expertise in waveform design, it provides a complete bubble of surveillance around the deployed area. The devices utilise our unique AI-based RF software… We look forward to delivering these initial sales, and expanding to repeat sales, as we have recently done with our other products.

Recent contract wins add to the growth trend of the drone security company. In February, DroneShield published its full-year results for 2020, which saw a 58% increase in revenue for the period.

While recent orders have been $1 million or less, the company maintains a high conviction sales pipeline of $100 million.

DroneShield share price surveilled 

The DroneShield share price has fared exceptionally well over the past 12 months. Companies within the defence space often make more ‘defensive’ investments due to the industry’s economic-agnostic nature. Typically, governments continue to spend money on defence regardless of recessions or impacts like COVID-19.

That might explain why the DroneShield share price has returned 60% in the last year. This compares to the S&P/ASX 200 Index (ASX: XJO), which returned 42% over the same period.

More reading

• Here’s why the DroneShield (ASX:DRO) share price is flying 8%
• Why the Droneshield (ASX:DRO) share price will be on watch tomorrow

Motley Fool contributor Mitchell Lawler 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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Rio Tinto Limited (ASX: RIO) has announced that it will implement an Indigenous Advisory Group (IAG) in an attempt to avoid the destruction of culturally significant landscapes. This decision comes after the controversy surrounding the demolition of Juukan Gorge in Western Australia.

The caves, which were at least 46,000 years old, were blown up by the mining giant last year. Consequently, Rio’s actions caused uproar in the Indigenous community, the media, society at large, and with investors. The CEO, along with 2 senior executives, resigned almost immediately afterwards. In addition, the chair of the company resigned earlier this month.

Let’s take a closer look at the steps Rio Tinto is taking to greater respect Indigenous culture.

Rio Tinto’s cultural heritage seminars

Yesterday, Rio held a series of online seminars for investors on the steps it would be taking after the Juukan Gorge disaster.

The IAG will advise the company, including at a board level, of Indigenous culture and issues within Australia. The group was formed after extensive consultations with the Australian Indigenous community to achieve “more diversity and breadth of views…in decision making,” according to a statement.

The group will consist of 5-8 members. The company hopes with the group it can regain trust both within and outside local Indigenous communities. Importantly, communities such as the Kurrama and Binigura peoples of the Pilbara region.

Management commentary

Regarding the decision, Rio Tinto CEO Jakob Stausholm said:

We have reflected a great deal as a company and leadership team over recent months – listening, learning and responding by taking actions to better manage Traditional Owner partnerships and cultural heritage aspects of our business

He added:

…ultimately, we are guests on their land. And, as guests, we must respect our hosts and work with them to understand their priorities and concerns and minimise our impacts.

Furthermore, Rio Tinto will report on its actions and progress in this space annually. It expects to release its first report in the first quarter of FY22.

Native Title and the mining industry

Despite the understandable uproar caused by Rio Tinto’s destruction of Juukan Gorge caves, its actions were, in fact, legal.

According to the Australian Broadcasting Corporation (ABC) the site was approved for removal in 2013 under Section 18 of the WA Aboriginal Heritage Act (1972).

Under Section 18 of the Act, the Minister for Planning, Lands, and Heritage can give consent to a mining corporation to destroy significant Aboriginal sites.

A federal government review of the incident recommended WA place a moratorium of Section 18 approvals under the Act. The Premier, Mark McGowan, refused to do so.

Currently, the WA government is reviewing the act. It intends to introduce legislation to the parliament in September to make amendments. The Guardian reports the proposed legislation makes some improvements, however, it still “doubles down on the same processes that failed Juukan Gorge traditional owners…”

Rio Tinto share price snapshot

At the time of writing, the Rio Tinto share price was up 0.3% on yesterday’s close – trading at $108.10.

Over the last 12 months, shares in the mining giant have appreciated by 35.85%. Its growth over the last few months has been driven by a rapid rise in the commodity price of iron ore.

Rio Tinto has a market capitalisation of $40 billion.

More reading

• How to counter the ASX 200’s Achilles heel
• ASX 200 climbs, Crown soars, Mineral Resources drops
• ASX 200 Weekly Wrap: Inflation fears hold ASX down
• These were the worst performers on the ASX 200 last week
• Woodside (ASX:WPL) share price falls during investor-led climate change charge

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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The A2 Milk Company Ltd (ASX: A2M) share price has been out of form once again this week.

This has led to the fresh milk and infant formula company’s shares dropping to a three-year low of $8.31.

Why is the a2 Milk share price at a three-year low?

There are a number of reasons why the a2 Milk share price is now trading at a multi-year low.

This includes heavy insider selling last year, sustained weakness in the daigou channel, and a series of guidance downgrades by management.

The most recent downgrade came last month when a2 Milk released its disappointing half year results.

For the six months ended 31 December, the company recorded a 16% decline in revenue to NZ$677.4 million and a 32.2% decline in earnings before interest, tax, depreciation and amortisation (EBITDA) to NZ$178.5 million.

Unfortunately, things are not expected to get much better in the second half after management once again incorrectly estimated the pace of recovery in the daigou and CBEC channels.

It is now forecasting FY 2021 revenue of ~NZ$1.4 billion with an EBITDA margin of 24% to 26% (excluding acquisition costs). This compares to its previously downgraded guidance range of NZ$1.4 billion to NZ$1.55 billion with an EBITDA margin of 26% to 29%.

This will mean a 19.1% year on year decline in revenue and a 26.7% decline in EBITDA, based on the low end of its guidance range.

What else is weighing on its shares?

Also weighing on the a2 Milk share price has been the reaction to its results and outlook from brokers.

After being a market darling for years, brokers have become increasingly mixed on its prospects.

This is particularly the case over at Citi. This week the broker retained its sell rating and $7.15 price target on the company’s shares.

As well as difficulties in the daigou channel, the broker has concerns over increasing competition in the China market from domestic producers.

So, although the a2 Milk share price is trading at a multi-year low, Citi appears to believe it could still fall a further 14% from here.

More reading

• A2 Milk (ASX:A2M) shares and one other slapped with sell ratings
• Leading brokers name 3 ASX shares to sell today
• Which ASX 200 shares haven’t recovered from the COVID-19 crash?
• Why the A2 Milk (ASX:A2M) share price is under pressure in 2021
• A2 Milk (ASX:A2M) share price tumbles on NZ recession fears

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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 Euro Manganese Inc CDI (ASX: EMN) share price has been volatile so far this week. Shares in the Canadian group roared back to life on Tuesday, closing 7.8% despite slumping lower in Monday’s trade. 

At the time of writing, the Euro Manganese share price is down 4.35%, trading at 66 cents.

Why is the Euro Manganese share price falling?

Euro Manganese is a Canadian small-cap battery materials company listed on the ASX. The group specialises in the extraction and development of high-grade manganese for use in electric vehicle (EV) batteries. The company is advancing its Chvaletice Manganese Project in the Czech Republic as a key strategic initiative.

Shares in the Canadian mining group slumped lower 4.5% lower on Monday after the company announced a A$30.0 million private placement to the market. Strong institutional participation across the book helped to make the placement oversubscribed.

The proceeds from the $0.60 per CDI offer will help advance its Chvaletice Manganese Project. Euro Manganese intends to produce battery-grade manganese by reprocessing a large deposit of manganese carbonate, contained in waste from historical mining operations at the site.

The Euro Manganese share price crashed lower on Monday after the oversubscribed placement. A strategic investor and environment, sustainability and governance (ESG) focused fund underpinned the capital raise.

However, it hasn’t been all bad news for shareholders. The Euro Manganese share price pared back its losses on Tuesday, surging 7.8% higher to close at $0.69 per share.

Euro Manganese raised the A$30.0 million in funds across two tranches. Euro Manganese maximised its A$25 million under Listing Rule 7.1 in the first tranche. The second tranche of $5.0 million, in excess of Listing Rule 7.1, will be subject to shareholder approval to be sought at a special meeting in May 2021.

Euro Manganese currently has a market capitalisation of $134 million.

Foolish takeaway

The Euro Manganese share price fell 4.5% lower on Monday after its latest capital raise announcement. The volatility continued on Tuesday with shares in the battery materials group surging 7.8% higher to $0.69 per share at yesterday’s close.

Shares in the Canadian battery materials group are trading lower again today following two large share price swings in the last two days.

More reading

• Mining companies with ESG strategies are at the front of the pack

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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