Tag: Motley Fool

There are both devastating and amazing stories resulting from the once-a-century floods across NSW at the moment. For investors, the leading ASX insurance share prices are all on watch, as more than 3,000 insurance claims have been made across the country.

That number is expected to rise dramatically over the coming days.

In wake of the disaster, the ASX’s major insurance companies have reacted differently. Note that German insurer Allianz, which has 8% of the Australian general insurance market, is not listed on the domestic exchange.

Leading ASX insurance share prices

Overall, the financial services sector has been performing very strongly this year, which makes it an especially timely occasion to look at the performance of Australia’s three largest insurance companies: Insurance Australia Group Ltd (ASX: IAG), Suncorp Group Ltd (ASX: SUN), and QBE Insurance Group Ltd (ASX: QBE). 

All three insurance companies have had positive 2021 share price performances year-to-date as the ASX has entered a bullish streak. The QBE share price is the overall winner in 2021 so far, up more than 12% at the time of writing. 

IAG 

With 29% of the overall insurance market, IAG has fielded more than 2,100 claims as of Sunday. The company has a maximum event retention of $169 million, which reduces to $135 million for a second event under its catastrophe reinsurance program. IAG says it’s still too early to predict the net cost of the disaster to its bottom line.

The IAG share price has risen steadily so far throughout the natural disaster, with the market leader adding 2.15% this week to counteract its 10% decline over the past 12 months.

At the time of writing, IAG shares are in the green, up by 0.84%.

What IAG CEO Nick Hawkins said:

 We know this is a very stressful time for those affected by the severe weather we are experiencing. Our immediate focus is on the safety of all the communities impacted by this heavy rain and flooding and we urge everyone to follow the directions of the emergency authorities.

We now have additional resources in place to help our customers get back on their feet and we encourage customers to contact us to lodge their claim as soon as possible so we can organise immediate assistance.

As soon as it’s safe to access the impacted areas, we’ll have our teams on the ground to begin the assessment and repair process, but our customers can access immediate help, including emergency accommodation, as soon as they contact us.

Suncorp

With 27% of the overall market, industry runner-up Suncorp has been the major loser so far this week, down 7.21%. This flies in the face of Suncorp’s yearly share price performance, which is a healthy 25% gain. However, that still hasn’t been enough to beat the sector, with the Suncorp share price down 39% against the broader competition. 

As of 10am Monday 22 March, Suncorp had only fielded 1,300 claims, 800 less than IAG had three days earlier. Suncorp’s first-event catastrophe reinsurance program allows for a much greater overall payout, with $250 million in holdings. The insurance group also have an aggregate excess of loss (AXL) protection, which provides $400 million of cover in excess of a retention of $650 million, with an event deductible of $5 million.

However, before the floods, $370 million of the AXL deductible had already been eroded. The group’s natural hazard allowance in FY21 is $950 million.

What Suncorp Group CEO Steve Johnston said: 

Our thoughts are with communities contending with this weather and the emergency services personnel and volunteers who are putting themselves in harm’s way.

Our Customer Support Teams will be deployed to the most impacted regions when waters recede, and our affected bank customers can access our emergency relief package. Our customers can be assured that we’re committed to their recovery and we will be with them every step of the way.

QBE

The QBE share price has lost 3.64% this week despite positive news for investors yesterday, with QBE revealing it had no exposure to insolvent UK financial services company Greensill. QBE is, so far, the only of the big three not to make a public ASX announcement throughout the disaster. It’s also up 1% today.

With 10% of the overall insurance market, QBE has been on a rollercoaster on the ASX over the past 12 months. The QBE share price has gone from a low of $7.32 per share on 23 March 2020, rocketing up to $10.98 by 14 August that year, and now to $9.59 today. 

The Motley Fool reported in February that QBE’s strong recent performance has led to multiple brokers increasing their ratings on the insurance company.

More reading

• Why the Suncorp (ASX:SUN) share price is tumbling lower today
• Why Fortescue, Freedom Foods, QBE, & Singular Health are sinking
• QBE (ASX:QBE) share price falls on Greensill update
• Brokers name 3 ASX shares to buy right now
• Why AGL, Clover, QBE, & Volpara shares are pushing higher today

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 Caravel Minerals Ltd (ASX: CVV) share price has been a proverbial gold mine for investors. Over the last 12 months, shareholders have seen an amazing 1,466.67% return on investment (ROI) in the company.

Just today, shares in the company were up 23.68% before being placed in a trading halt. Before the suspension, shares in the company were trading for 23.5 cents each. The S&P/ASX All Ordinaries Index (ASX: XAO), by comparison, ended the day down 0.12%.

Let’s take a closer look at the incredible rise of the Caravel Minerals share price. 

What’s going on with the Caravel Minerals share price?

The Caravel share price has been going gangbusters over the last year.

Caravel, being a copper-based company, unsurprisingly sees its fortunes rise and fall with that of copper. Well at the moment, copper is rising.

Over the past 12 months, the twenty-ninth element’s price has increased by 85.87%, according to Trading Economics. Just from the beginning of this year, the metal is up 16.57%. It currently sells on the commodity market for US$4.103 per pound.

Only one week ago, Caravel announced “significant” copper deposits had been found at its Bindi deposit in Western Australia.

A week prior to that announcement, the company declared it was exploring an area in south-west WA with high chances of “massive sulphide-hosted nickel-copper-platinum group elements…”

Copper’s price is seen by many analysts as indicative of the general mood of the economy. As the COVID-19 pandemic subsides and confidence rebounds, the economy is tipped to do well in the near-term.

Another factor influencing the copper price is supply and demand. Many Latin American countries are seeing ongoing supply issues because of the pandemic. As well, there is a bill in the Chilean Congress to increase royalties on copper miners. South America is one of the largest copper producers on the globe.

As well, copper (along with lithium and some other metals) is essential in the production of climate-friendly technologies. Demand for zero-emissions tech, such as electric cars and solar panels, is soaring as governments and industry alike look to combat man-made climate change. As supply contracts and demand increases, this inevitably leads to a price rise. In economics, this is known as the law of supply and demand.

More reading

• How are ASX insurance share prices performing during NSW’s floods?
• Risk posed to Graincorp (ASX:GNC) share price following ACCC verdict
• Fund managers have been buying Blackmores (ASX:BKL) and this ASX share
• 3 under-appreciated income stocks yielding 4-9%: Motley Fool CIO Scott Phillips, on ausbiz
• Why ASX 200 energy shares should outshine as inflation picks up

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 GrainCorp Ltd (ASX: GNC) share price is likely under the watchful eyes of shareholders today. This is due to the conclusion of the warehousing agreement investigation.

At the time of writing, the GrainCorp share price has dipped 0.3% to $4.71 per share.

A fairer deal for farmers

An investigation was conducted by the Australian Competition and Consumer Commission (ACCC) yesterday. Consequently, it was found that  19 terms in the company’s Grain Warehousing Agreement were unfair under Australian Consumer Law.

GrainCorp acts as an intermediatory between grain growers and grain buyers. Therefore, the company uses an agreement to protect all parties. However, the ACCC determined facets of this agreement to favour GrainCorp over its farming suppliers in protections.

In particular, a concerning term in the agreement capped the company’s liability to grain growers at $100,000. This was applicable even if the loss was a consequence of GrainCorp’s negligence or omissions.

ACCC Deputy Chair Mick Keogh made the following comment regarding the limiting term:

We believe the term which limited GrainCorp’s liability created a significant imbalance between the rights and obligations of growers and GrainCorp, and had the potential to cause significant financial detriment to growers without being reasonably necessary to protect GrainCorp’s legitimate interests.

GrainCorp has committed to amending these 19 various terms in the 2021/2022 warehousing agreement. This includes removing limited liability on losses attributable to gross negligence, fraud, criminal conduct, or wilful misconduct by GrainCorp. Additionally, all other instances of liability for losses will be increased to $200,000.

Risky business for GrainCorp and its share price

Although the amendments are likely to the delight of many Australian farmers, fundamentally it puts the risk back on GrainCorp.

Along with the change in limited liability terms, the following changes will be included:

• Providing growers with sufficient time to make necessary arrangements should they not want to continue the arrangement into the new season.
• Addressing concerns about GrainCorp having the unilateral right to renew or amend the terms of the agreement.
• Removing limitations on GrainCorp’s obligations to perform certain services GrainCorp was contracted to provide under the Grain Warehousing Agreement.
• Removing terms that allowed GrainCorp to deny reasonable requests by growers to inspect grain stored with GrainCorp
• Eliminating terms that provided GrainCorp with a broad discretion to vary the goods or services it provided to growers.

The changes increase the risk to GrainCorp’s bottom line in the event of negligence. In essence, the amendment could result in a double whammy to the company. If an incident were to occur, GrainCorp would lose out on revenue. Additionally, GrainCorp would be required to cover the saleable value to farmers.

Rains outweighing risks

Despite the added risk for GrainCorp, the share price has fared the revelations reasonably well. Potentially shareholders are more bullish on the company due to the continued above-average rainfall.

While Major #Flooding is occurring in #Sydney‘s west it’s also important to be aware this is a large & widespread event. Western #NSW will see increased #rain from Monday & many areas will see more rain on Tuesday. Check regularly for updates https://t.co/sNdzpEYEQ1 @NSWSES pic.twitter.com/uEQpjjSlAc

— Bureau of Meteorology, New South Wales (@BOM_NSW) March 21, 2021

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

The La Niña weather event being experienced in Australia is providing optimal conditions for Australian farmers while hampering it in the Northern Hemisphere. As a consequence, prices for commodities such as grain remain elevated. This explains the over 42% gain in the GrainCorp share price in the past 12 months.

More reading

• Will Aussie agricultural commodity prices see another record-breaking year?

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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I like to keep an eye on substantial shareholder notices. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye are summarised below. Here’s what these fund managers have been buying:

Blackmores Limited (ASX: BKL)

A notice of change of interests of substantial holder reveals that Australian Super has been buying more of this health supplements company’s shares. According to the notice, the super fund has lifted its stake by approximately 250,000 shares to 1,223,878 shares. This represents a 6.33% stake in the company.

Australian Super was buying shares as recently as Friday. That day the super fund picked up 117,659 shares at an average price of $85.80. So with the Blackmores share price now trading at $82.63, investors are able to pick up shares at lower price to what the super fund paid. Though, it is worth noting that analysts at Citi have just reiterated their sell rating and $59.20 price target. on its shares

IRESS Ltd (ASX: IRE)

According to a notice of initial substantial holder, banking giant Commonwealth Bank of Australia (ASX: CBA) has been increasing its stake in this financial technology company. The notice reveals that the bank has been building a position since October and has now accrued a total of 9,667,623 shares. This represents 5% stake in the company.

One broker that would approve of this purchase is Credit Suisse. Earlier this month the broker upgraded the company’s shares to an outperform rating with an $11.00 price target. This compares to the current IRESS share price of just $9.27. The broker believes its shares are trading at a very attractive level following a sizeable pullback from its highs. It appears as though Commonwealth Bank agrees.

More reading

• A2 Milk (ASX:A2M) shares and one other slapped with sell ratings
• Leading brokers name 3 ASX shares to sell today
• How to counter the ASX 200’s Achilles heel
• ASX 200 up 0.35%: Crowns surges, ANZ & CBA settle class actions
• Will mounting competition break the Afterpay (ASX:APT) share price?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia has recommended IRESS 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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Scott Phillips joined the ausbiz team to discuss three ASX companies that are offering impressive grossed-up dividend yields.

No, they’re not the usual suspects — not a bank or telco in sight — but three companies you should have on your investment radar if you’re trying to beat the market and like your dividends, too!

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You can find the original video at www.ausbiz.com.au or by clicking here.

More reading

• 2 ASX retail shares delivering strong growth
• This ASX company has increased or maintained dividends for 44 years
• 2 quality ASX dividend shares to buy today
• Got money to invest for dividends? Here are 2 ASX shares
• ASX quarterly rebalance: HUB24 joins ASX 200, Brainchip into ASX 300

Scott Phillips owns shares of ADAIRS FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia has recommended Accent Group and ADAIRS FPO. 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 great inflation debate continues.

And the question many S&P/ASX 200 Index (ASX: XJO) investors are asking is, which shares in my portfolio will suffer if inflation picks up and which ASX 200 shares will perform best.

Now, there’s no consensus yet on when inflation will truly pick up the pace.

The Reserve Bank of Australia has echoed other leading central banks like the US Federal Reserve and European Central Bank in saying it’s not overly concerned with inflation in the next few years. That could mean interest rates indeed remain at rock bottom levels until 2024. But global bond markets have been indicating a potentially different outcome. The US 10-year Treasury yield currently stands at 1.69%. While that’s low by historic standards, it’s well above the 1.04% yield as recently as 27 January.

So what should ASX 200 investors concerned about rising inflation do?

Risk of inflation above 3% increasing

Christian Mueller-Glissmann is the managing director for portfolio strategy and asset allocation at Goldman Sachs Group Inc.

As Bloomberg reports, Mueller-Glissmann says that “A scenario of sustained inflation above 3% and rising is not our base case, but that risk has definitely increased compared with the previous cycle.”

So how does Goldman Sachs recommend investors position themselves if indeed we’re in for a run of high inflation?

If you’re thinking of the old fallback, gold, you may want to think again.

According to Mueller-Glissmann:

We found that during a high inflation backdrop, commodities, especially oil, are the best hedge. They have the best track record in the past 100 years to protect you from unanticipated inflation – one that’s driven by scarcity of goods and services, and even wage inflation like that in the late 60s. Equities have a mixed tracked record. We like value stocks as they are short duration.

The biggest surprise is gold. People often see gold as the most obvious inflation hedge. But it all depends on the Fed’s reaction function to inflation. If the central bank doesn’t anchor back-end yields, then gold is probably not a good choice as real yields might rise. We see index-linked bonds as in the same camp as gold.

There are a number of ASX oil shares that could help protect you from unanticipated inflation.

Indeed, though Donald Horne may have intended it ironically when he labelled Australia the Lucky Country in his 1964 novel of the same name, Australia has a vast trove of oil and gas reserves, along with numerous other valuable resources.

Two leading ASX 200 oil shares

For the purposes of this article, we’ll stick with 2 of the dominant ASX 200 oil shares.

First up is Santos Ltd (ASX:STO).

The Santos share price is slipping today, down 2%, but Santos shares remain up 12% for the year. Over the past 12 months, the Santos share price has soared 146%, compared to a 48% gain on the ASX 200. At the current price of $17.18 per share, Santos has a market cap of $15.0 billion. Santos pays a dividend yield of 1.3%, fully franked. Morgan Stanley has a buy rating on Santos shares.

Next, we turn to Oil Search Ltd (ASX:OSH).

Oil Search shares are also sliding today, down just over. Year-to-date the Oil Search share price is up 13% with shares up 132% over the past 12 months. At the current $4.25 per share, Oil Search has a market cap of $8.9 billion. Oil Search pays an annual dividend yield of 1.7%, unfranked.

More reading

• Top broker issues buy alert on Santos (ASX:STO) and these ASX energy shares
• 5 things to watch on the ASX 200 on Monday
• End of oil price rally fires warning shot for the ASX COVID recovery trade
• Woodside (ASX:WPL) share price falls during investor-led climate change charge
• Beach, Santos, & Woodside shares on watch after oil prices crash

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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The Xero Limited (ASX: XRO) is outperforming its peers and the broader market after the stock was upgraded by a leading broker today.

The Xero share price is leading the WAAAX cohort of ASX tech darlings when it jumped 1.6% to $121.49 in the last hour of trade.

In contrast, the Appen Ltd (ASX: APX) share price gained 1.1% to $18.21, while the Altium Limited (ASX: ALU) share price, Afterpay Ltd (ASX: APT) share price and WiseTech Global Ltd (ASX: WTC) share price slumped between 1% and 2% each.

Xero share price defying the tech gloom

ASX technology shares have been on the nose lately as rising bond yields reduced appetite for high growth shares trading on expensive multiples.

But this could be the right time to be buying the Xero share price after Credit Suisse upgraded the cloud accounting software company to “outperform” from “neutral”.

“Following a share price rally in late CY20 that we believe disconnected from fundamentals, the XRO share price is now slightly below where it was at its mid-November result,” said the broker.

“Yet over that time, it has made an attractive acquisition, we have received further positive industry   datapoints and we believe has continued another four months of ~20% revenue growth.”

Acquisition not a Xero-sum game

The attractive acquisition that Credit Suisse was referring to is workforce management platform, Planday. Xero paid €183.5 million for the business earlier this month.

“The acquisition provides a complementary offering across staff scheduling, time tracking, vacation management, payroll and reporting, and expands the TAM, which we estimate at >NZ$2.5bn across XRO’s existing markets,” added Credit Suisse.

This highlights an interesting question. Will other ASX tech darlings use their still high-flying share price to make acquisitions in order to justify their current valuations?

It’s a trend worth keeping a close eye on as most takeovers destroy value for the bidder.

Operating conditions may be better than expected

But the acquisition isn’t the only reason for Credit Suisse’s bullish view on the shares.

Industry trends, business closures and incorporations in key markets and upbeat commentary from key competitor Quickbooks are leading the broker to believe that Xero’s operating conditions are better than what some are expecting.

Investors won’t have to wait long to find out if Credit Suisse is right. The company will release its earnings results on 13 May and that could be a catalyst for the Xero share price.

How much is the Xero share price worth?

“We forecast group sales growth roughly in-line with the first half, which we believe is enough to support the share price at current levels,” said the broker.

“Looking forward, we believe a global rollout of Planday (likely in order of existing user base size) will be viewed positively although note localisation poses complexity and will require time, and competition is increasing in the space.”

Credit Suisse lifted its 12-month price target on the Xero share price to $136 from $119 a share.

More reading

• Afterpay and Zip were among the most traded ASX shares last week
• How to counter the ASX 200’s Achilles heel
• ASX 200 up 0.4%: Bank shares lower, Xero shares upgraded
• ASX 200 crash anniversary: The most important lesson we’ve learned
• ASX 200 crash anniversary: 5 of the best performing shares of the last 12 months

Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Altium. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, and Xero. 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 CSL Limited (ASX: CSL) share price has taken a hammering in recent weeks, falling as low as $242.00 at the start of this month. At the time of writing, CSL shares are trading for $260.57, up 0.15%.  The global biotech has struggled to regain its limelight due to COVID-19 vaccine concerns as well as plasma collections.

However, with the vaccine’s latest developments, is now the time to invest into CSL shares?

Vaccine update

The CSL share price has barely lifted off despite the positive news released on over the weekend.

According to reports, the Australian Therapeutic Goods Administration (TGA) advised it had approved local production of the COVID-19 AstraZeneca vaccine. This indeed has alleviated concerns caused from either the suspension or slow importation of the much-needed vaccines. Italy blocked the export of 250,000 AstraZeneca vaccine doses that were destined for Australia in early March.

The TGA green-light will see CSL manufacture up to 50 million doses of the AstraZeneca vaccine across two Melbournian sites. The first, located in Broadmeadows, will produce the active raw vaccine material. The second facility, situated in Parkville, will create the final vaccine doses along with vials filled and packaged for distribution.

Each batch is expected to be quality control tested, and approved by the TGA, CSL and AstraZeneca before being released.

CSL plans to manufacture around 1 million COVID-19 doses each week. So far, almost 300,00 people have been vaccinated in Australia.

Plasma collections

The key downside risk for CSL remains its plasma collections — an essential raw material used to make life-saving therapies. Derived from people donating blood, plasma volumes are estimated to be around 20% down when compared against December 2019 levels.

CSL has previously noted that there is a lead time of several months between plasma collections and product sales. In addition, the cost per litre of plasma increased by up to 20% in the first-half of 2021.

To address the concerns, the company has moved to open an additional 12 clinics in the near-future. It hopes by expanding its presence, people will be more inclined to donate blood. Currently, CSL has a global network of more than 270 plasma collections centres throughout the United States, Europe, and China.

Furthermore, the company has also reached out to potential donors through targeted marketing initiatives. This includes social media influencers encouraging to give blood, as well as increased monetary incentives (up to US$700 each month).

CSL share price summary

The CSL share price has uncharacteristically been a poor performer in the past 12 months, falling 7%. The company’s shares reached a 52-week high of $332.68 last April on the back of a sharp market rebound.

While its shares are trading around what they were back in October 2019, investing for the long-term is a foolproof way to increase wealth. Blue-chip companies such as CSL have an outstanding track record to deliver strong returns over time.

More reading

• 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
• 5 of the best ASX shares to buy next week

Aaron Teboneras owns shares of CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The QEM Ltd (ASX: QEM) share price is surging again today. At the time of writing, the vanadium and energy company’s shares are trading for 27 cents, up 15.22% from yesterday’s closing price.

Let’s take a look at what’s driving the QEM share price higher.

Floating away on hydrogen  

While there is no news from QEM so far this week, today’s gains may be residual from the company’s big news last Monday.

On 15 March, the company announced it will be pursuing a hydrogen initiative in outback Queensland. Both the announcement and an accompanying investor presentation released two days later sent the QEM share price soaring. Last Monday, the QEM share price rose by an astonishing 101%. Then, on Wednesday, it rose by another 6.4%.

Yesterday, a day of no news, still saw the company’s share price rocketing 53% and it seems to be following a similar trajectory today.

3 key drivers

Over the last eight days, the company has shared three key happenings that have boosted the QEM share price. Firstly, as mentioned, the company announced its intention to produce ‘green’ hydrogen by using solar power to separate hydrogen from water – a process known as electrolysis. It is exploring opportunities to do so at its Julia Creek site.

Secondly, it shared it is seeking a number of government loans and grants with a combined value of more than $2.88 billion. The company believes it’s eligible for funding from various federal and Queensland government initiatives, including the Northern Australian Infrastructure Facility and the Strategic Blueprint for the North West Minerals Provence.

Finally, the company reiterated the importance of its Julia Creek site as an oil shale reserve and producer of vanadium. QEM hopes to make its oil production more sustainable by using its hydrogen resource to hydrogenate oil produced at Julia Creek.

QEM share price snapshot

Today’s gains included, the QEM share price has rallied by more than 195% since the start of the month and around 188% year to date. It is also up by 278% over the last 12 months.

QEM has a market capitalisation of around $23 million, with approximately 100 million shares outstanding.

More reading

• Why the QEM (ASX:QEM) share price is shooting 16% higher today
• The QEM (ASX:QEM) share price has rocketed 119% today. Here’s why

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

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

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The Marenica Energy Ltd (ASX: MEY) share price was on the move earlier today. However, after posting gains of 3.3% in afternoon trading, the share price is currently flat.

This comes after the ASX uranium explorer reported successful early results at one of its projects in Namibia.  In addition, Marenica currently holds the largest area of uranium exploration leases in the African nation.

What uranium exploration results did Marenica Energy report?

Marenica’s shares moved higher earlier today after the company reported it had discovered an extensive palaeochannel system during its maiden geophysical exploration program at its Namib IV prospect.

The exploration program is intended to reveal uranium mineralisation zones. Additionally, the company said the system it has discovered extends for more than 19 kilometres.

Management commentary

Commenting on the exploration results, Marenica’s managing director, Murray Hill said:

The structure of this palaeochannel system at Namib IV is extremely promising and we look forward to mobilising a drill rig, within weeks, to test this expansive system.

The other great news is that we are getting closer to commencing an airborne EM [electromagnetic] survey of the Namib Area with final approvals expected this month. The airborne EM is expected to outline new and extensive palaeochannel systems and enable rapid planning of detailed drill programs on highly prospective targets.

According to the release, the EM survey should commence in early April and cover 6,300 linear kilometres. Due to COVID-19  impacts, the survey had been delayed.

Marenica Energy share price snapshot

Marenica Energy shares have performed exceptionally well over the past 12 months, up 288%. That compares to a 49% gain on the All Ordinaries Index (ASX: XAO).

Year-to-date the Marenica share price is up 11%. At the current price of 16 cents per share, the ASX uranium minnow has a market cap of $33 million.

More reading

• Afterpay and Zip were among the most traded ASX shares last week
• Deep Yellow (ASX:DYL) share price wobbles as demand burgeons
• Why is the Telstra (ASX:TLS) share price having such a good week?
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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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