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The New Hope Corporation Limited (ASX: NHC) share price is tumbling despite the company revealing an 89% jump in earnings.

Stock in the S&P/ASX 200 Index (ASX: XJO) coal producer is down 4% right now, trading at $5.50.

New Hope share price plummets despite $1b of earnings

Here are the key takeaways from New Hope’s January quarterly report:

• $1 billion of unaudited underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) ­– an 89% jump on those of the prior comparable period (pcp)
• $983 million of cash generated from operating activities in the first half
• Thermal coal prices closed at US$357.80 for the quarter – a 59% increase on the pcp
• So far, the company has completed $31 million of its on-market buy-back
• Ended the period with $1.1 billion of cash and equivalents

The company’s run of mine coal production came in at around 2.1 million tonnes last quarter – a 7.2% quarter-on-quarter drop. That left its year-to-date production down 24.7% on the pcp.

Meanwhile, coal sales slumped 22.3% quarter-on-quarter to close to 1.5 billion tonnes – leaving its year-to-date production 27.7% lower.

Finally, oil production for the quarter came in at 71,652 barrels while sales volumes slipped 7% due to a build-up of crude stock.

What else happened last quarter?

New Hope notes demand for coal weakened last quarter as Europe and Asia saw more mild temperatures and a drop in industrial activity.

Meanwhile, a price cap on coal was introduced by the New South Wales Government, limiting the black rock’s value to $125 a tonne.

New Hope’s 80% owned Bengalla was directed to reserve the lower of 280,000 tonnes or 15% of production for domestic consumption until June 2024.

However, due to existing supply contracts, the operation won’t be impacted until early next year.

Finally, New Hope paused its on-market buy-back in December, turning its attention to buying back its 2.75% senior convertible notes with a face value of $200 million.

What’s next?

The company expects demand to rebound in the coming months as COVID-19 lockdown measures ease in China, and Japan continues lessening its use of Russian coal.

New Hope share price snapshot

After roaring higher in 2022, the New Hope share price has started this year out on the wrong foot.

The stock is currently 6% lower than it was at the start of 2023. Though, it’s still 119% higher than it was this time last year.

For comparison, the ASX 200 gained nearly 7% year to date and around 2% over the last 12 months.

The post New Hope share price tumbles 6% despite surge in earnings appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why AGL, New Hope, News Corp, and REA shares are dropping today
• New Hope share price dives 9% as ASX 200 coal stocks get hit hard
• 2 ‘high quality’ ASX 200 shares to navigate a turbulent 2023: expert

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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Liontown Resources Ltd (ASX: LTR) shares are heading in the right direction at last on Thursday.

In afternoon trade, the lithium developer’s shares are up almost 2% to $1.37.

However, this gain cannot hide the fact that Liontown shares are down 38% from its mid-November peak of $2.22.

Why have Liontown shares been smashed?

There have been a number of catalysts for the sudden pullback by Liontown’s shares over the last three months.

The first is concerns over the outlook for lithium prices. With some analysts suggesting that the price of the battery making ingredient could fall materially in the next 18 months, investors appear worried that lithium miners may not deliver earnings as strong as hoped. This has obvious consequences for valuations in the industry.

Also weighing on Liontown’s shares has been short sellers loading up on its shares, as well as a number of other lithium developers. They may believe that lithium prices are indeed heading lower and have been shorting their shares.

Finally, a cost blowout at the Kathleen Valley lithium project has shaken confidence. The cost of the project continues to rise and there are fears that Liontown will need to raise funds in the near future given its cash shortfall.

Is this a buying opportunity?

Not everyone is bearish on Liontown shares. The team at Bell Potter remains positive and recently retained its speculative buy rating with a $2.81 price target. This suggests that its shares could double in value over the next 12 months.

Bell Potter acknowledges that project costs are rising but is overlooking this due to an increase in its production capacity. It commented:

LTR has announced that the Kathleen Valley capital cost is now expected to be $895m (June 2022 estimate of $545m), a 20% increase in initial plant capacity to 3.0Mtpa (from 2.5Mtpa) and the potential for early revenues from sales of Direct Shipping Ore (DSO). The capital cost increase is due to industry cost inflation, the increased plant capacity and prioritising schedule to maintain first concentrate production from mid2024. Around $75m has been spent on the project to date, implying $820m remaining. LTR has cash reserves of $385m, undrawn debt of $300m and is progressing a range of further funding options which it does not expect will be required until late 2023.

The post Down 38% since mid-November, is it time to bag some Liontown shares? appeared first on The Motley Fool Australia.

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More reading

• 4 ASX 200 lithium shares being targeted by short sellers
• 2 ASX lithium shares to pounce on before they explode: experts
• Here are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to buy next week
• Buy Liontown shares today for 70% upside: Macquarie

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 0.75% to 7,407.3 points.

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

Bapcor Ltd (ASX: BAP)

The Bapcor share price is up 5.5% to $6.55. Investors have been buying this auto parts retailer’s shares following the release of its half year results. Bapcor reported an 11.2% increase in revenue to $1 billion and a 2.3% increase in pro-forma net profit after tax to $146.3 million. Both were records for the period. This allowed Bapcor to boost its interim dividend by 5% to 10.5 cents per share.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price has jumped 10% to $10.37. This is despite the struggling fund manager delivering a terrible half year result. Magellan reported a 67% decline in net profit after tax to $83.8 million. This was driven by the halving of its average funds under management since this time last year. Investors appear to have been expecting an even worse update or are attracted to its 46.9 cents per share interim dividend.

Sonic Healthcare Limited (ASX: SHL)

The Sonic Healthcare share price is up almost 14% to $33.03. Investors have been buying this healthcare company’s shares despite its half year result falling ever so slightly short of consensus estimates. They may be focusing more on news that the company is looking at making some acquisitions.

Telstra Group Ltd (ASX: TLS)

The Telstra share price is up 2% to $4.23. This follows the release of the telco giant’s first half results. Telstra delivered a result ahead of expectations with its 6.4% increase in total income to $11.6 billion and 11.4% jump in EBITDA to $3.9 billion. This allowed the Telstra board to increase its fully franked interim dividend by 6.3% to 8.5 cents per share.

The post Why Bapcor, Magellan, Sonic Healthcare, and Telstra shares are charging higher appeared first on The Motley Fool Australia.

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More reading

• Bapcor share price surges 5% on record half
• Everything you need to know about the boosted Telstra dividend
• Sonic Healthcare share price surges 9% on ‘amazing’ profit result
• Magellan share price shakes off 60% profit slump and marches higher
• Telstra share price higher on half-year revenue and earnings beat

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Bapcor and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s been a day of relief for ASX investors so far this Thursday. After posting some nasty falls on both Monday and yesterday, the All Ordinaries Index (ASX: XAO) is back in the green today, up a healthy 0.72% so far. But the Zip Co Ltd (ASX: ZIP) share price makes this look like child’s play.

Zip shares are on fire today. The All Ords buy now, pay later (BNPL) share is currently up a whopping 7.21% to 60 cents per share. Yep, Zip shares closed at 56 cents a share yesterday but opened at 57 cents this morning before rising to 60 cents just after lunchtime.

So what’s going on with Zip today that has resulted in such a happy jump in value?

The Zip share price just gained 7%, what’s going on?

Well, it’s not entirely clear. There hasn’t been any news or official announcements out of Zip today. Or indeed for a few weeks.

However, moves like this aren’t exactly uncommon with Zip shares – one of the more volatile companies in the All Ordinaries Index:

This company has also been on a bit of a slide of late too. Between 2 February and yesterday, the Zip share price lost a rather horrible 18.84%.

Today’s gains reduce that loss to 13.8%. But Zip still remains a good 29% or so from the 84 cents the company got up to last month. And we won’t even mention Zip’s current 52-week high of $2.80 per share. Nor Zip’s 2021 all-time record high of $14.53.

So it’s possible that investors just decided that Zip shares had gotten too low yesterday, and have given the company’s share price a shot in the arm on this positive day for the All Ords.

Another thing to keep in mind is that Zip is now one of the ASX’s most short-sold shares. This can mean that a good session for the company can amplify the share price gains, as some short sellers are forced to cover their positions.

At the current Zip Co share price, this ASX All Ords BNPL share has a market capitalisation of $424.77 million.

The post Why is the Zip share price rocketing 7% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• Cheap ASX shares: Is Zip worth the risk?
• Are other ASX BNPL shares at risk of going down the same path as Openpay?
• Can the Zip share price ever recover?
• These are the 10 most shorted ASX shares

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Zip Co. 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 Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is up 0.85% today as companies continue to release their half-year results for the six months ending 31 December 2022.

Here we take a look at the results of the biggest real estate investment trust (REIT) among the ASX 200 stocks, Goodman Group (ASX: GMG), as well as those of the operator of the Australian Securities Exchange, ASX Limited (ASX: ASX).

Goodman Group profit up 11.5%

Goodman Group is one of the largest ASX 200 stocks, with a market capitalisation of $37.25 billion. The Goodman share price is up 1.2% today to $20.05 after the industrial property specialist reported an 11.5% profit boost and upgraded its full-year FY23 guidance.

Here are the highlights of 1H FY23 for Goodman Group:

• Operating profit of $877 million, up 11.5% on the prior corresponding period (pcp) of 1H FY22
• Operating earnings per share (EPS) of 46.4 cents, up 10.7% pcp
• Gearing at 9.7%, (8.5% at 30 June 2022) with look through gearing at 20.7%
• Available liquidity of $2.8 billion
• Net tangible assets (NTA) of $8.87 per share, up 6% from 30 June 2022
• Total assets under management of $79.5 billion, up 17% pcp
• $1.4 billion of revaluation gains across the group and partnerships during the half
• Portfolio occupancy at 99% and like-for-like net property income growth of 4.2%
• Development pipeline valued 9% higher on pcp to $13.9 billion, with a forecast yield on cost of 6.4%.

In a statement, Goodman Group said “the business is performing better than originally anticipated”.

Goodman said:

We’ve seen continued rental growth in our markets which has underpinned strong cash flows.

The capital position is strong, the portfolio remains almost fully leased, and development activity
continues to be robust.

As a result, the Group expects to achieve full year OEPS growth of 13.5% compared to the previous guidance of 11%.

Massive CHESS derecognition cost impacts ASX profit

This ASX 200 stock is the company that runs the largest securities exchange in Australia. The ASX share price is down 0.7% to $69.55.

Here are the key points for 1H FY23:

• Statutory profit of $73.7 million (impacted by the CHESS derecognition charge of $176.3 million announced in November 2022)
• Underlying net profit after tax (NPAT) of $250 million, down 0.1% pcp
• Operating revenue of $499.5 million, down 0.4% pcp
• Interim dividend of 116.2 cents per share declared.

In a statement, ASX CEO Helen Lofthouse said it was a “pleasing performance … achieved in a period of notable change for our organisation and volatility in our external environment”.

The post 2 ASX 200 stocks on the move following earnings updates appeared first on The Motley Fool Australia.

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More reading

• Why experts say these ASX 200 blue chip shares are buys
• This ASX 200 share is one of my top ideas to rake it in on a recovery
• How I’d invest $300 a month in ASX shares to target an extra income of $20,000 per year
• Which ASX 200 shares are rebounding fastest in 2023?
• Brokers say these quality ASX 200 blue chip shares are buys

Motley Fool contributor Bronwyn Allen has positions in Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is charging higher. At the time of writing, the benchmark index is up 0.65% to 7,400.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

AMP Ltd (ASX: AMP)

The AMP share price is down over 13% to $1.13. Investors have been selling this financial services company’s shares following the release of its half year results. Investors appear disappointed that AMP reported a 34% decline in underlying net profit after tax to $184 million.

Evolution Mining Ltd (ASX: EVN)

The Evolution share price is down 3% to $2.93. Although the gold miner reported a 13% increase in EBITDA to $446 million, it decided to cut its dividend down to 2 cents per share. Management advised that this dividend balances capital investment and balance sheet management with investor returns.

Perenti Ltd (ASX: PRN)

The Perenti share price is down 8% to $1.11. This follows news of an incident at the Dugald River underground mine in Cloncurry, Queensland. The mining services company remains hopeful that a positive outcome can be achieved and is working around the clock.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is down 3% to $7.95. Investors have been selling this coal miner’s shares following the release of its half year results. Although Whitehaven Coal delivered incredible growth and a sales and profit result in line with consensus expectations, its dividend appears to have disappointed the market. Whitehaven Coal increased its fully franked interim dividend by a massive 300% to 32 cents per share. However, this was still well short of the 44 cents per share consensus estimate.

The post Why AMP, Evolution, Perenti, and Whitehaven Coal shares are dropping appeared first on The Motley Fool Australia.

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More reading

• AMP share price dives 12% on earnings miss
• Everything you need to know about the monster Whitehaven dividend
• Whitehaven Coal share price sinks despite 423% profit jump
• ‘Looks attractive’: Fund names 3 ASX shares to buy for the energy crisis
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The Bapcor Ltd (ASX: BAP) share price is roaring higher after the company released its earnings for the first half of the financial year this morning.

Shares in the S&P/ASX 200 Index (ASX: XJO) automotive spare parts and accessories provider are currently trading 5.15% higher at $6.53.

Bapcor share price leaps as revenue reaches $1b

Here are the key takeaways from Bapcor’s latest earnings release:

• $1 billion of revenue – a 11.2% jump on the prior comparable period (pcp) and a new record
• $62 million of pro-forma net profit after tax (NPAT) – up 2.3%
• $146.3 million of pro-forma earnings before interest, tax, depreciation, and amortisation (EBITDA) – a 6.7% jump
• Pro-forma earnings per share (EPS) came to 18.3 cents
• Interim dividend boosted 5% to 10.5 cents per share

The company’s specialist wholesale segment brought in the lion’s share of revenue last half, at 36%, with trade close behind, responsible for 35% of revenue. Retail brought in 21% of its revenues while its New Zealand business was behind the other 8%.

Its positive financial result came despite overall margins being impacted by challenges in retail, economic weakness in New Zealand, and higher supply chain costs.

Bapcor ended the period with a $329 million net debt position.

What else happened last half?

It’s been a busy period for Bapcor.

The company boasts 31 more company-owned locations than it did in the first half of financial year 2022.

It has also successfully transitioned its Bearing Wholesales and Federal Batteries brands into its Victorian distribution centre last half and is on track for practical completion of its Queensland distribution centre in the current half.

Finally, its Better than Before transformation moved from planning into implementation and execution and remains on schedule.

What did management say?

Bapcor CEO and managing director Noel Meehan commented on the news driving the company’s share price higher today, saying:

Our diversified model has demonstrated the resilience of Bapcor’s business, and despite input cost pressure we have had strong performances of our trade and wholesale operations that allowed us to mitigate shorter-term headwinds in supply chain, retail and New Zealand.

What’s next?

The company experienced a solid start to the year in January, with trading conditions unchanged.

It believes the second half of this fiscal year will bring slight improvements in trading, subject to market conditions. It also notes more progress is needed to further reduce elevated inventory levels.

Finally, it still expects to realise the initial capital expenditure for its transformation plan next half. The plan aims to provide a net earnings before tax and interest (EBIT) benefit of at least $100 million and return at least 12% of invested capital by financial year 2025.

Bapcor share price snapshot

Today’s gain has put the Bapcor share price back into the year-to-date green.

The stock is currently 1% higher than it was at the start of 2023. Though, it has fallen 7% since this time last year.

For comparison, the ASX 200 has gained 7% year to date and 2% over the last 12 months.

The post Bapcor share price surges 5% on record half appeared first on The Motley Fool Australia.

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More reading

• Why is nobody talking about this gem of an ASX 200 stock?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Newcrest Mining Ltd (ASX: NCM) shares are in the red during the Thursday lunch hour.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold miner closed yesterday trading for $24.31 and are currently trading for $23.93, down 1.52%.

It’s not just Newcrest shares under pressure.

Most ASX gold stocks are down today, as witnessed by the 1.6% decline in the S&P/ASX All Ordinaries Gold Index (ASX: XGD).

This follows similar declines in US-listed gold stocks overnight, likely spurred by another small retrace in the gold price. At US$1,835 per ounce, the gold price is down 6% since 1 February.

What else are ASX 200 investors considering?

ASX 200 investors will be running their slide rules over Newcrest shares following two price-sensitive market releases this morning.

First, as The Motley Fool reported earlier this morning, the gold miner has rejected the takeover proposal lobbed earlier this month by United States-based gold giant Newmont Corporation (NYSE: NEM).

Newmont had offered 0.380 Newmont shares for each Newcrest share held to acquire 100% of the Aussie miner.

At the current Newmont share price of US$46.30 (AU$67.29), that works out to an offer price of $25.57 per share, some 7% above the current Newcrest share price.

In declining the offer, management said it’s open to considering better offers, but that the current offer doesn’t “represent sufficient value” for shareholders.

What else is impacting Newcrest shares today?

The ASX 200 gold miner also released its half-year results today (1H FY23).

(Note, the figures reported are in US dollars.)

Newcrest reported a 24% increase in revenue from the prior corresponding period to $2.12 billion. Earnings before interest, taxes, depreciation and amortisation (EBITDA) also increased 24% to $919 million.

And income investors should be pleased with Newcrest’s interim dividend of 15 US cents per share and a special dividend of 20 US cents per share, both fully franked. The special dividend reflects the full distribution of funds received from Lundin Gold for the early repayment of the gold prepay credit facility.

Meanwhile, the miner’s All-In Sustaining Cost (AISC) dropped 8% compared to 1H FY22 to $1,089 per ounce.

The AISC margin increased by 17% to $585 per ounce, despite a 2% reduction in the realised gold price to $1,696 per ounce.

The miner also reported it had completed an extensive safety review at its Brucejack mine following a tragic underground fatality in October.

As at 31 December, the company held $2 billion in cash and committed undrawn bank facilities.

“Newcrest is in an excellent position, and with positive momentum for gold and copper prices continuing into 2023, we look forward to a stronger second half of the year,” Newcrest CEO Sherry Duhe said.

How have Newcrest shares been tracking?

As you can see in the chart below, Newcrest shares are off to a great start in 2023, up 16% despite today’s retrace.

The post Why are Newcrest shares slipping on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Newcrest share price on watch amid results and takeover rejection
• How do I cash in my Newcrest shares if US giant Newmont takes over?
• 5 things to watch on the ASX 200 on Friday
• Takeover bid undervalues Newcrest shares: Citi analysts
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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CSL Limited (ASX: CSL) shares are edging lower for a second day in a row.

Though, longer term shareholders aren’t likely to be overly bothered. Since this time last year, the biotherapeutics company’s shares are up over 15%.

This compares favourably to a 1.5% gain by the ASX 200 index over the same period.

Can CSL shares continue to outperform?

The good news is that one leading broker believes that CSL’s shares can continue their outperformance over the remainder of 2023.

In response to the company’s half years results release earlier this week, the team at Citi has urged investors to pick up shares.

According to the note, the broker has reiterated its buy rating and lifted its price target to $350.

Based on the current CSL share price of $303.61, this implies potential upside of 15% for investors over the next 12 months.

What did the broker say?

Citi was pleased with CSL’s half year results and has upgraded its near term earnings estimates partly to reflect a quicker than expected recovery in plasma collections. It is also now expecting a result ahead of guidance in FY 2023.

And with the broker believing that CSL shares should trade at an FY 2025 price-to-earnings ratio of 28x, it believes fair value is now $350. Citi explained:

We increase our FY23-25e NPATA per share (Core EPS) by +1%/+7%/+10% reflecting the faster than expected recovery in plasma collections and higher sales. Our TP moves to $350 (from $335) Maintain Buy. Our TP implies CSL should trade on an FY25 PE of ~28x, in line with the 10-year average. The key risk to FY24 and FY25 remains the pace of recovery of plasma collections, and Behring gross margins. Our FY23 NPATA of US$2,669m is ~2% above the top-end of guidance.

The post Top broker says CSL shares will hit $350, buy now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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 Scott Phillips.

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The Matsa Resources Ltd (ASX: MAT) share price is having a stunning day on Thursday.

In afternoon trade, the ASX gold share is up 50% to 5.6 cents.

Why is this ASX gold share rocketing?

This ASX gold share is rocketing higher on Thursday after the release of a drilling update from the Fortitude North, Lake Carey Gold project in Western Australia.

According to the release, the company has received further excellent results from the remaining seven holes of the of nine completed as part of a 19 hole 3,310m RC drilling program.

Management notes that drilling has provided significant insights into the geometry of high grade shoots in the Fortitude North mineralised system. Importantly, it indicates that the system remains open to the north and the south.

In addition, the results are substantially thicker grading intercepts than any drilling results from past drilling and demonstrate that the Fortitude North mineralised system contains high grade shoots with thicker widths than previously thought.

In fact, management believes the project shares many characteristics with the Fortitude Gold Mine, which is a resource of 489,000 ounces.

Matsa’ executive chairman, Paul Poli, commented:

These results continue to support our view that Fortitude North is a bigger system than the Fortitude Gold Mine where Matsa has an established resource of 489,000oz and a 2021 mining study that indicates a positive cash flow of AUD$95M. The thicker intercepts in the high grade shoots provide substantial volumes of gold not seen in previous drilling and certainly eclipse what we have seen at Fortitude Gold Mine. I am confident that with additional drilling, we can start to replicate some of these results further along strike and back towards the south.

The post This ASX gold share just surged 50% on a new discovery appeared first on The Motley Fool Australia.

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• 3 ASX 200 stocks marching higher following earnings updates
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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