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If JPMorgan’s analysts are right, the world is looking at a rare new supercycle in commodity prices. Prices have been on the rise for oil, metals and agriculture. And sustained high prices could last for years.

Over the past 100 years, there have been only 4 commodity supercycles. The last one started in 1996 and began to retreat during the fallout from the GFC in 2008.

Much of the credit for driving the last commodities supercycle went to a rapidly expanding, resource-hungry China at the time. But not this one.

As Bloomberg reports:

JP Morgan attributed the latest cycle to several drivers including a post-pandemic recovery, “ultra-loose” monetary and fiscal policies, a weak US dollar, stronger inflation and more aggressive environmental policies around the world.

According to the JPMorgan analysts, led by Marko Kolanovic, the world’s efforts to limit climate change could have “unintended consequences”. Consequences that could “constrain oil supplies while boosting demand for metals needed to build renewable energy infrastructure, batteries and electric vehicles”.

One of the metals you’ll find used extensively in electric vehicles and home storage batteries is copper. Copper is also widely used in electrical wiring for building construction, as well as plumbing. And with developed nations around the globe pledging big infrastructure spending, the metal could see further lifts in demand.

Two leading ASX copper shares

On 23 March last year, copper prices fell to US$210 per pound, victim to the wider COVID-driven panic selling at the time, and the lowest prices since October 2016.

Since then, copper prices have leapt 80%, currently trading at US$377 per pound. That’s right at an 8-year high.

While not every ASX listed copper share has ridden the wave higher, several have. Those include OZ Minerals Limited (ASX: OZL) and Aeris Resources Ltd (ASX: AIS).

The OZ Minerals’ share price is up 221% since copper prices bottomed on 23 March. Over that same period, the Aeris Resources share price gained 350%.

Year-to-date OZ Minerals shares are flat while Aeris Resources shares are down 18%.

Now there are no guarantees ASX copper miners will see their share prices go up, even if we’re in the early stages of commodities supercycle that will continue to lift copper prices in the years ahead.

But without a doubt, ASX copper shares will welcome higher copper prices.

More reading

• Why ASX miners will get a double tailwind from Biden’s US$1.9tn stimulus
• Why these market experts aren’t concerned about the ASX 200’s pullback
• Why the IGO (ASX:IGO) share price is tanking today
• Investment specialist: ASX to buckle in for the commodity bull market of a lifetime
• Why the Oz Minerals (ASX:OZL) share price will be on watch today

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

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Are you wanting to buy some blue chip ASX shares for your portfolio? If you are, then I would suggest you check out the ones listed below.

These quality companies could have the potential to grow strongly over the next decade. As a result of this, they have been tipped as blue chips to buy. Here’s why:

REA Group Limited (ASX: REA)

The first ASX blue chip share to look at is property listings company REA Group. Over the last few years it has had to contend with a mini housing market crash and a pandemic. But despite this, the company has shown how resilient its business model is by coming out on top and delivering solid financial results.

The good news is that the housing market is improving, mortgage loan growth is accelerating, and house prices have been tipped to rise strongly in 2021. This is likely to lead to higher listing volumes over the next 12 months and could result in an acceleration in its profit growth. Especially given its new revenue streams, cost cutting, and potential price increases.

This morning Morgan Stanley retained its overweight rating and lifted its price target on the company’s shares to $175.00.

ResMed Inc. (ASX: RMD)

Another blue chip to consider is ResMed. It is a medical device company with a focus on sleep disorders.

Despite the pandemic’s negative impact on sleep disorder diagnoses and referrals, ResMed has continued to grow strongly over the last 12 months. This has continued in FY 2021, with ResMed recently releasing a strong second quarter update.

For the three months ended 31 December, the company delivered a 9% increase in quarterly revenue to US$800 million and a 17% increase in net profit to US$206.4 million.

Pleasingly, it still has a long runway for growth ahead of it. In fact, management has set itself a goal of improving 250 million lives in out-of-hospital healthcare in 2025. Helping it achieve this goal will be its rapidly growing digital health ecosystem, which reached over 12 million cloud connectable medical devices in 2020. This provides ResMed with strong recurring revenues and a material amount of high quality data.

Analysts at Morgans are positive on its future. They currently have an add rating and $30.99 price target on its shares.

More reading

• Brokers name 3 ASX shares to buy right now
• ASX 200 down 0.3%: Crown CEO hasn’t resigned, Mirvac update, Nearmap remains halted
• Here’s a bargain ASX share in a sea of expensive stocks
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited and ResMed Inc. 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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If you’re looking for ASX growth shares to buy, then it could pay to listen to the team at Hyperion Asset Management.

As of the end of December, the Hyperion Australian Growth Companies Fund has achieved a total return of 20.1% per annum over the last three years. This means the fund is outperforming its benchmark by a solid 6.9%.

I thought I would take a look at some of the shares the fund manager. Here are three in its portfolio:

Afterpay Ltd (ASX: APT)

This buy now pay later provider is Hyperion Australian Growth Companies Fund’s largest holding and accounts for 10% of its portfolio. The fund manager was happy with the company’s recent trading update, noting that it grew underlying sales by 112% to A$2.1 billion in November. Hyperion also appears impressed with its referrals to retailers, which were up 147% on the prior corresponding period. It notes that Afterpay generated 35 million leads globally for its merchant partners during the month and 1.2 million in the US on Black Friday alone.

Nanosonics Ltd (ASX: NAN)

Another growth share that Hyperion has in its fund is Nanosonics. It is the infection control specialist behind the Trophon EPR disinfection system for ultrasound probes. The fund manager notes that the company released a trading update in November and revealed a 4% increase in consumables sales between 1 July and 31 October. Management also advised of an improvement in the number of new Trophon unit installations compared to the later months of FY 2020. Another positive that caught the eye of Hyperion was that “Nanosonics emphasised the continued significance and unmet need for their lead new product which is currently in development.” It was also pleased to see the company sign an agreement with I-MED Radiology Network to update its fleet of Trophon EPRs to the newer Trophon 2 model. I-MED will also expand its installed base to ensure standardised practice for high level disinfection of ultrasound equipment.

WiseTech Global Ltd (ASX: WTC)

Finally, this logistics solutions company is another growth share you’ll find in the Hyperion Australian Growth Companies Fund. The fund manager appears very positive on WiseTech Global’s outlook given its sizeable market opportunity. It commented: “WiseTech’s current target segment within the broader market, that being global supply chain software execution IT, was valued by Gartner at US$4.7 billion in 2019. With an estimated 7% market share of this segment, WiseTech’s growth opportunity remains significant.” It also notes that “the company provided evidence of its value proposition via compelling product demonstrations of CargoWise One and CargoWise Neo along with interviews with large users of CargoWise One.”

More reading

• These ASX shares are helping this fund manager smash the market
• Another day, another Zip (ASX: Z1P) share price record
• 4 steps to pick winning ASX shares
• The real reason the Afterpay (ASX:APT) share price is at a record high
• Here’s what low interest rates really means for your cash

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 Nanosonics Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and WiseTech Global. The Motley Fool Australia has recommended Nanosonics 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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Sims Ltd (ASX: SGM) shares edged higher today following news of the company’s acquisition of certain assets from Alumisource Corporation. By the market’s close, the Sims share price was up 1.13% to $12.55.

Based in Pennsylvania, Alumisource provides specialised raw materials in the form of custom shredded and blended aluminium scrap to North American aluminium and steel industries.

What did Sims announce?

The Sims share price was on the move today after the company advised that its recently acquired Alumisource assets were purchased for a guaranteed amount of US$22.5 million. It noted that further payments would follow over the next three to five years using a pre-determined earnout formula.

As a result of the takeover, Sims projects a net increase in its North American metal division’s non-ferrous retail sales volumes. The company revealed that for FY21, it expects an additional 33,000 tonnes to be sold. Sims recorded total non-ferrous retail sales volumes of 140,000 tonnes in FY20.

In addition, Sims stated that Alumisource’s founder and CEO, Gabe Hudock, will continue his role for a three to five-year minimum period. This will ensure a smooth transition and enable the business to focus on safety and sustainability.

Management commentary

Sims CEO and managing director Alistair Field spoke about the acquisition saying:

I’m pleased to achieve this key milestone toward delivering our strategic targets and growing non-ferrous retail volumes in North America. Major aluminium customers in the United States continue to seek product that is suitable for direct charging. Alumisource meets these needs by providing ‘in- spec’ furnace ready product in an automated and safe manner.

Alumisource is an ideal fit with our purpose, [to] create a world without waste to preserve our planet, and our sustainability goals. One tonne of aluminium produced from recycled sources mitigates 7.9 tonnes of carbon emissions compared to aluminium produced from virgin material

…We are committed to a disciplined capital management approach and ensuring that new capital investments fit with our strategy and purpose, as well as meeting minimum hurdle requirements

About the Sims share price

The Sims share price has travelled almost 17% higher over the past 12 months. The company’s shares hit a multi-year low of $5.52 in March 2020, before moving on an upwards trajectory.

At the current Sims share price, the company commands a market capitalisation of around $2.5 billion.

More reading

• Leading brokers name 3 ASX shares to sell today
• The latest ASX stocks to be hit by broker downgrades

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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I Googled ‘wake me up’ last night.

I didn’t get the result I expected.

I was looking for the Wham! song. You know the one…

Wake me up before you go-go
Don’t leave me hanging on like a yo-yo

Yeah, that one.

I was going to play it for my son. 

(It sounded like he was humming part of it, so I thought I’d play him the whole song. He swears that wasn’t what he was humming… #DadFail)

Anyway… when I put the search into Google, I instead got the song by Avicii.

Talk about a way to make a bloke feel old.

(If you don’t know who Avicii is… or who Wham! is… congratulations, you’ve just dated yourself. I only know the former because my son likes the Avicii song of the same title, too!)

Speaking of old, though, a few coincidences have got me thinking about the passing of time.

I’m coming up on a work anniversary at The Motley Fool, and have started getting LinkedIn messages.

Yesterday was 31 years since Nelson Mandela was released from prison on Robben Island, having spent 27 years in custody.

It was also my late Pop’s birthday.

Today is apparently the 25th anniversary of the release of Baz Lurhmann’s Romeo & Juliet.

All days and weeks have their confluence of anniversaries, of course, and there’s nothing uncommonly remarkable about this week… it was just something that I noticed.

Maybe it’s because today is Lunar New Year. (Kung Hei Fat Choy!)

Maybe it’s because I’m in that part of my life when it’s likely that I have fewer days left, than I have lived, but it’s hard to believe that Mandela was released from prison 31 years ago, or that R&J hit our screens in 1996.

It doesn’t help to realise we’re now closer to 2050 than 1980, either!

I’m pretty sure you’re with me on the ‘time flies’ thing.

And that’s important for us as investors too – in two very different ways.

The first is how quickly we as consumers (and businesses) adapt to the ‘new normal’.

Since Romeo & Juliet, the internet has gone mainstream (and the movie would be a good chance to be a Netflix Original if it was released today, rather than enjoy its premiere on the big screen).

We can’t really imagine life without computers or smartphones.

Electric vehicles, once the stuff of science fiction, made up the majority of new car sales in Norway last year.

The world’s largest companies are no longer oil drillers, industrial conglomerates, cigarette makers or traditional car manufacturers.

They are smartphone companies, search businesses, software designers, e-commerce players and electric vehicle innovators.

I think that’s worth keeping in mind as you think about the likely winners of the next 10, 20 or 30 years.

The second reason the ‘time flies’ thing is worth being aware of is that while thinking about investing for the long term can feel challenging, that perspective is helpful.

The developed world’s stock markets (including the ASX) are generally considered to have increased at a compound annual return of around 10% per year over the long term.

And while that’s a helluva lot more than you’ll get on cash in the bank, it doesn’t always feel exciting to have $100 turn into $110.

Or to have to wait 7 years to turn $100 into $200.

It’s welcome, sure… but 7 years feels like such a long time to wait.

The catch, of course, is we would have felt like that in 1988 when Mandela was released from prison, or while watching Romeo & Juliet for the first time.

Sitting around a table in ‘88, we would have hated the idea of having to wait until 1995 to (hypothetically) double our money. Indeed, 2021 would have seemed almost unimaginable.

Of course, if we had earned that historical 10%, we would have doubled our money in 1995, again in 2002, then in 2009 and once again in 2016. We’d now be only 2 years away from yet another double.

(The actual market return has differed, of course, but the future is also unknowable, so just stick with me for the purposes of the example!)

If you’re keeping track, in two years time, we’d have had our fifth double.

And if you have a passing acquaintance with compounding, you’ll know that a ‘fifth double’ is not just ‘5 x 2’.

Indeed, if you invest $1,000 and it doubles 5 times, you first go to $2,000.

Then $4,000

Then $8,000

Then $16,000

And, at the end of the 35 year period, if you doubled your money every seven years, you’d have $32,000.

Now, imagine starting with $10,000 instead…

Or, if you’d rather work backwards, to have a million dollars, you’d only have needed to start with just over $31,000.

And that assumes you didn’t add a single cent.

Save and invest regularly, and the numbers truly explode.

My point?

Well, other than the truly impressive nature of compounding, it’s to take us back to 1988… or 1996… or pretty much any time in the past.

Given those numbers above, wouldn’t you love to go back and have the means, the discipline and/or the knowledge to have started investing (or have invested more) back then?

I know I would.

But here’s the kicker.

Don’t you reckon that in 10, 20 or 30 years from now, you’ll wish you could go back to 2021 and do the same?

Yeah, me too.

Maybe you genuinely don’t have the option of investing (more).

Fair enough.

But I reckon 99% of the people reading this, if they’re truly honest with themselves, would acknowledge they could put just a little more money away… starting right NOW.

So, what’s stopping you?

Don’t you owe it to your future self to put your shoulder to the wheel with just a little bit more effort?

I’m not sure I’ll be still writing these articles in 31 years’ time. I hope I am.

But either way, I hope you’ll look back on today fondly, as the day you tilted your financial future a little further upward.

More reading

• Brokers name 3 ASX shares to buy right now
• Why the Kogan (ASX:KGN) share price is charging higher today
• Telstra (ASX:TLS) share price rises as brokers pass judgement on its profit result
• What’s happening with the Northern Minerals (ASX:NTU) share price?
• Here’s why the Liontown (ASX:LTR) share price hopped 5% today

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

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

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

Newcrest Mining Ltd (ASX: NCM)

According to a note out of Morgans, its analysts have upgraded this gold miner’s shares to an add rating with an improved price target of $29.89. The broker made the move in response to a strong half year result by Newcrest earlier this week. It believes the company is on track to achieve its guidance in FY 2021 and appears more confident on its long term strategy following the update. The Newcrest share price is trading at $26.09 this afternoon.

REA Group Limited (ASX: REA)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted the price target on this property listings company’s shares to $175.00. According to the note, the broker continues to expect REA Group to bounce back strongly from the pandemic in the second half and FY 2022. In addition to this, it has lifted its valuation of REA Group’s stake in US real estate listings company Move Inc following a jump in its second quarter revenue. The REA Group share price is on course to end the week at $157.43.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Credit Suisse have retained their outperform rating and $3.85 price target on this telco giant’s shares following its half year results. While the company’s update fell a touch short of the broker’s expectations, it was pleased with certain aspects of it. One of those was the performance of TowerCo, which it feels bodes well for when the company eventually looks to monetise the business. Credit Suisse continues to expect Telstra to pay a 16 cents per share dividend in the near term. The Telstra share price is fetching $3.25 on Friday afternoon.

More reading

• Telstra (ASX:TLS) share price rises as brokers pass judgement on its profit result
• ASX 200 down 0.3%: Crown CEO hasn’t resigned, Mirvac update, Nearmap remains halted
• Is HyperOne listed on the ASX?
• Is the Telstra (ASX:TLS) share price in the buy zone?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Brokers name 3 ASX shares to buy right now appeared first on The Motley Fool Australia.

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The market may be dropping lower today but that hasn’t stopped the Kogan.com Ltd (ASX: KGN) share price from charging higher.

In afternoon trade, the ecommerce company’s shares are up 1.5% to $16.89.

Why is the Kogan share price pushing higher?

The Kogan share price appears to be charging higher today on the belief that the COVID-19 lockdown in Victoria will give its sales a boost.

This afternoon the Victorian government announced that it would be locking down the state for five days from midnight tonight. This action is being taken in an effort to stop the spread of a highly transmissible strain of COVID-19.

During previous lockdowns, online retailers such as Kogan and Temple & Webster Group Ltd (ASX: TPW) performed very strongly as investors were forced to do their shopping online.

Should you buy Kogan shares?

A five-day lockdown isn’t going to make a huge difference to Kogan’s full year sales, so investors may not want to make an investment decision purely on that.

Though, one broker that was already recommending investors to buy Kogan shares was Credit Suisse. Earlier this month the broker retained its outperform rating and increased its price target on its shares to $21.08.

Based on the current Kogan share price, this price target implies potential upside of almost 25% over the next 12 months.

According to the note, the broker was pleased with its half year update and appears confident there will be more strong growth ahead for the company.

This is because it believes Kogan is well-placed to benefit from the shift to online shopping. This is particularly the case given the expansion of its product range and the recent $122 million acquisition of New Zealand-based online retailer Mighty Ape.

Mighty Ape operates online stores in New Zealand and Australia and has a focus on gaming, toys, and other entertainment categories. It currently has 719,000 active customers, bringing the company’s total to over 3.7 million.

Following today’s gain, the Kogan share price is now up 231% in 12 months.

More reading

• 5 fantastic ASX shares to buy right now
• 2 COVID-19 ASX shares to buy
• 3 stellar ASX growth shares to buy today
• Top brokers name 3 ASX shares to buy next week
• 2 explosive ASX growth shares to buy immediately

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 Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The ASX slumped this afternoon but the Telstra Corporation Ltd (ASX: TLS) share price is bucking the downtrend as experts reacted to its profit results.

The Telstra share price jumped 0.6% to $3.27 in after lunch trade when the S&P/ASX 200 Index (Index:^AXJO) fell 0.5%.

The losses on the market deepened when Victoria announced it was re-entering a five-day hard lockdown.

Don’t underestimate Telstra’s profit results

But that wasn’t enough to put a dampener on the Telstra share price as several brokers gave its earnings announcement their tick of approval.

UBS reckons the market may be missing the significance of the telco’s decision to increase the Transacting Minimum Monthly Commitment (TMMC) on mobile plans in the current half.

While investors get that Telstra mobile subscribers would have to pay $3 more on average in 2HFY21 compared to the same period last year, that’s really only half the story.

Mobile upside lifts Telstra’s share price

“What the market may underestimate – and what the TMMC metric does not factor – is a $5 price increase that TLS implemented for customers who signed up between Jun-19 to Jun-20,” said UBS.

“A full 6 month impact of the $5 price uplift (for a portion of the base), along with the TMMC uplift, should result in a significant postpaid ARPU acceleration in 2H21 (UBSe ~$48) vs 1H21 (~$46).”

The broker reckons that by FY23, the average revenue per user (ARPU) could go as high as $51 to $52.

Extra good news in the results

What’s more, the multiples that one of Macquarie Group Ltd’s (ASX: MQG) businesses is willing to pay to acquire Vocus Group Ltd (ASX: VOC) is also adding to UBS’ enthusiasm for Telstra’s mobile tower assets.

Meanwhile, Credit Suisse also reiterated its positive take on the Telstra share price post its profit results.

While earnings were a little lower than expected, the broker pointed out that its mobile subscriber performance was ahead of the competition.

Telstra may be the only operator to increase prices recently, but it added 80,000 net new subs in the first half. That’s well above the 42,000 that Credit Suisse was forecasting.

Telstra at earnings inflection point

Another broker that is bullish on Telstra is Goldman Sachs, who pointed out that Telstra is facing an earnings inflection point in the current half.

This is will be driven by ongoing cost reductions and a robust mobile service revenue outlook, given the positive ARPU outlook and ongoing strength in sub growth, supported by the clear 5G lead that Telstra holds,” said the broker.

What’s more, all three brokers believe Telstra’s 16 cent a share full year dividend can be sustained. This puts the Telstra share price on a gross yield of around 7% if franking is included.

More reading

• ASX 200 down 0.3%: Crown CEO hasn’t resigned, Mirvac update, Nearmap remains halted
• Mirvac (ASX:MGR) share price slides on half-year results
• Is HyperOne listed on the ASX?
• Is the Telstra (ASX:TLS) share price in the buy zone?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited and Telstra Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra 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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Northern Minerals Ltd (ASX: NTU) shares have gone nowhere today after the company requested a trading halt prior to market open this morning. By the close of trade Thursday, the Northern Minerals share price was fetching 5.2 cents.

Why is the Northern Minerals share price at a standstill?

The Northern Minerals share price remains unchanged today after the company requested a trading halt, pending a capital raising announcement.  

Northern Minerals is yet to release details on the capital raising. However, media outlets have speculated on the potential deal.

According to an article today in The Australian Financial Review, Northern Minerals is looking to raise $20 million in fresh equity via a placement of new shares. According to the terms sent to funds, shares are being offered at 4.9 cents each, a 5.8% discount to the closing level of the Northern Minerals share price yesterday.

The article noted that funds raised would go towards a feasibility study for a processing plant at the company’s Browns Range rare earths project in Western Australia and the Northern Territory. It is believed that New York-based corporate advisory outfit EAS Advisors will be handling the placement.

The Northern Minerals share price will remain in a trading halt until an announcement is released to the market, or until the start of normal trading on Tuesday 16 February.

Fast-track to commercial production

Northern Minerals is a producer of dysprosium, which is a heavy rare earth element, from its 100%-owned Browns Range project in Western Australia.

Before Northern Minerals shares entered a trading halt, the company announced it had intentions of fast-tracking its production of commercial rare earths.

According to the announcement released on 10 February, Northern Minerals aims to shave two years from its target date for commercial production at its Browns Range project.

The company’s management noted that it had identified a market opportunity to target several facilities outside of China which have both capacity and capability to process a heavy rare earth xenotime concentrate.

Despite the ambitious aims, Northern Minerals will still have to meet specific criteria before being ready for commercial production, including a feasibility study.

In addition to its plans to fast-track a beneficiation-only feasibility study, Northern Minerals has committed to another batch of resource drilling to be completed before mid-year.

Based on the current Northern Minerals share price, the company commands a market capitalisation of around $230 million.

More reading

• Why is the Northern Minerals (ASX:NTU) share price taking a dive 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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The Liontown Resources Limited (ASX: LTR) share price shot up more than 5% to an intraday high this afternoon. It has since retreated slightly to 45 cents a share, up 4.6% at the time of writing.

Today’s gain follows yesterday’s share price bump off the back of news detailing Tony Ottaviano’s appointment as CEO.

Liontown Resources is a battery metals exploration and development company with lithium discoveries at two projects. The company’s 100%-owned lithium assets at Kathleen Valley and Buldania are both located in Western Australia mining districts. The miner has a market capitalisation of $741.3 million and 1.8 billion shares outstanding.

Liontown share price soars after gold and copper results

According to Liontown’s latest announcement, the company’s Moora Project in Western Australia has returned multiple, highly anomalous gold and copper results.

The recent assays have defined at least three mineralised areas.

Highlights include achieving 12m @ 1.37 g/t gold from surface including 4m @ 2.92 g/t gold from 4m. Additionally, drilling discovered 37m @ 0.25g/t gold from surface and 13m @ 0.22% copper from 24m.

The Moora Project is located 150km from Perth in the same geological terrain as Chalice Mines Limited’s world-class Julimar PGE-nickel-copper-gold discovery.

Liontown managing director David Richards said that the results of the company’s Moora drilling campaign demonstrated potential for a large-scare discovery:

With a growing volume of drilling data from the project in the weeks ahead, we anticipate being able to move relatively quickly to further RC and, potentially, diamond drilling. If there is a big discovery to be made, we will leave no stone unturned to make sure we uncover it.

Drilling will recommence mid-February this year.

A snapshot of the Liontown share price

The Liontown share price has exploded more than 330% over the previous 12-month period.

One year earnings per share (EPS) growth currently weighs in at 25.5%.

According to the company’s Q420 activities and cash flow report, Liontown’s cash balance was $16.4 million as of 31 December 2020.

So, if you held a position for the past five years, the Liontown share price would have returned $3,350% on your investment. 

More reading

• Liontown (ASX:LTR) share price pumps on the back of CEO announcement

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

The post Here’s why the Liontown (ASX:LTR) share price hopped 5% today appeared first on The Motley Fool Australia.

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