Tag: Motley Fool

Mesoblast Ltd (ASX: MSB) shares have been on fire recently.

So much so, the ASX All Ords biotech stock has risen 40% since this time last month.

Why has this ASX All Ords biotech stock stormed higher?

This strong gain has been driven by a couple of positive developments relating to the US Food and Drug Administration (FDA).

The first was that its Revascor product, which is being trialled as a treatment for children with hypoplastic left heart syndrome, was granted an Orphan-Drug Designation following the submission of results from a randomised controlled trial.

The second news is that the US FDA will support an accelerated approval pathway for its rexlemestrocel-L (R-L) product under the existing Regenerative Medicine Advanced Therapy designation.

It is Mesoblast’s allogeneic mesenchymal precursor cell product for patients with end-stage ischemic heart failure with reduced ejection fraction and a left ventricular assist device.

This positive developments appear to have drowned out news that the ASX All Ords stock has been hit with a class action.

Class action

This month it was revealed that Omni Bridgeway Ltd (ASX: OBL) will be co-funding a shareholder class action on behalf of investors who acquired Mesoblast shares or related securities between 22 February 2018 and 17 December 2020 inclusive. It states:

Broadly, the Consolidated Class Action alleges that Mesoblast contravened its continuous disclosure obligations and engaged in misleading or deceptive conduct throughout the Claim Period in relation to both the SR-aGVHD application and COVID-19 application of R-L.

Participants in the class action may be entitled to compensation for losses arising out of Mesoblast’s alleged breaches of its continuous disclosure obligations and/or by Mesoblast engaging in misleading and deceptive conduct.

It remains unclear how much the class action is seeking in damages but the company can ill-afford to give up much cash. At the end of the first half, Mesoblast had a cash balance of US$77.6 million after burning through US$26.6 million of cash during the six months.

The post Guess which ASX All Ords company is being sued by shareholders over stock price losses appeared first on The Motley Fool Australia.

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More reading

• 4 ASX All Ords shares going gangbusters on Tuesday
• Why 4DMedical, Block, Judo, and Mesoblast shares are pushing higher today
• Why is the Mesoblast share price jumping 16% on Monday?
• Why Cettire, GQG, Mesoblast, and Nine Entertainment shares are falling today
• Mesoblast share price tumbles on US$32.5m half-year loss

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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Got a spare $500 to invest in a top S&P/ASX 200 Index (ASX: XJO) dividend stock?

Then I suggest checking out ASX 200 bank stock Australia and New Zealand Banking Group Ltd (ASX: ANZ).

ANZ shares have long been popular among passive income investors for their lengthy track record of reliably paying two dividends per year. Even during the pandemic addled year of 2020.

Atop that welcome passive income, I also like buying into strength. And the ASX 200 dividend stock has been rewarding investors with outsized share price gains this year as well.

The ANZ share price closed at $29.81 on Friday, notching new 52-week highs. Shares could retest that record today. After slipping on Monday and edging higher yesterday, ANZ stock is up 1.5% in afternoon trade today at $29.74 a share.

That puts shares in the big four bank up more than 27% in 12 months.

Not including those dividends, which we’ll get to shortly!

And there could be more outperformance from the ANZ share price to come in 2024.

With inflation in Australia slowly returning to the RBA’s target range, we could see several interest rate cuts in the second half of the year. That could help ANZ increase its earnings if management decides not to pass the full rate reductions on to the bank’s borrowers.

So, how about that passive income?

One ASX 200 dividend stock to buy for passive income

Getting back to those juicy dividends, ANZ paid a fully franked interim dividend of 81 cents per share on 3 July. The bank paid a final dividend, franked at 56%, of 94 cents per share on 22 December.

That puts the full-year payout from this top ASX 200 dividend stock at $1.75 a share, partly franked.

At the current ANZ share price, that equates to a trailing yield of 5.9%.

With $500, you could buy 16 shares today, with enough left over for a pizza dinner. Based on the trailing yield that would see you earn $28 in annual passive income alongside the potential for further share price gains.

Lacking a crystal ball, I can’t say with certainty what the future passive income payouts will be from this ASX 200 dividend stock. But as outlined above, I think the earnings outlook for ANZ looks strong in 2024, which should support dividends.

We’ll know precisely what the next interim dividend payment will be on 7 May, when ANZ reports its half-year results.

As always, you should do your own thorough research before investing in any product, including this leading ASX 200 dividend stock.

If you’re not comfortable with that or simply don’t have the time, then reach out for some expert advice.

The post 1 top ASX 200 dividend stock to buy now with $500 appeared first on The Motley Fool Australia.

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More reading

• How much passive income will I get from shares vs. property?
• Should you wait for a dip to buy ASX 200 bank shares?
• ASX dividend royalty: Australia’s top stocks for reliable income
• Here’s how the ASX 200 market sectors stacked up this week
• 3 ASX dividend shares with yields above 5% (but are they safe?)

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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Dividend shares that pay out income to their shareholders every three months are quite rare here on the ASX. Especially high-yield ASX shares.

Whilst it might be the norm for income shares to pay out quarterly dividends in many countries abroad, biannual, six-month dividends are the undisputed standard here on the Australian markets.

Almost every ASX blue chip share on the stock market sticks to a schedule of rewarding their shareholders every six months.

However, not all ASX dividend shares fall into this category. So today, let’s discuss three high-yield ASX shares that pay out dividend income four times a year.

3 high-yield ASX shares that pay out quarterly dividends

GQG Partners Inc (ASX: GQG)

First up we have US fund manager GQG. GQG is a stock that has been causing some waves on the ASX lately, thanks in most part to its 60% or so rise over the past four months. Strong growth in funds under management is attracting investors all over the ASX to this stock.

But despite this share price rise, GQG remains a compelling investment for anyone seeking dividend income in my view. This company remains a high-yield ASX share, currently trading on a whopping dividend yield of over 6.5%. And yes, this dividend does come in three-month, quarterly instalments.

These dividends have been rapidly climbing in value too. Last year, GQG paid out a March dividend worth 1.87 US cents per share. But the same dividend in 2024 is set to be worth a much-improved 2.6 US cents per share.

Rural Funds Group (ASX: RFF)

Next up, we have an ASX real estate investment trust (REIT) in Rural Funds Group. Rural Funds is a REIT that specialises in owning agricultural land and assets. Its portfolio consists of macadamia, cattle and almond farms, as well as vineyards.

Rural Funds is another high-yield ASX share. At current prices, investors are being offered a trailing dividend yield worth an attractive 5.5%. And yes, this REIT pays out quarterly dividend distributions too. Investors have enjoyed receiving 2.93 cents per unit from Rural Funds every three months over the past two years.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Finally, this exchange-traded fund (ETF) from Vanguard is worth a mention. Unlike most ASX shares, most ETFs do pay out quarterly dividend distributions. Vanguard’s High Yield ETF is no exception. This fund invests in a basket of high-yield ASX shares that offer some of the best and most consistent dividends on the ASX.

Some of the shares that are currently in VHY’s portfolio include Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Wesfarmers Ltd (ASX: WES) and Woodside Energy Group Ltd (ASX: WDS).

Today, VHY units offer investors a trailing dividend distribution yield of 4.49%.

The post 3 high-yield ASX dividend shares that pay cash every quarter appeared first on The Motley Fool Australia.

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More reading

• Buy these ASX ETFs for a second income
• Buy BHP and these ASX dividend shares
• Top ASX passive income shares to buy in March 2024
• Got $10,000 to invest? How to turn it into monthly income
• Why Cettire, GQG, Mesoblast, and Nine Entertainment shares are falling today

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Wesfarmers. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. 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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PSC Insurance Group Ltd (ASX: PSI) shares were storming higher on Wednesday before being slammed into a trading halt.

The ASX All Ords insurance stock was up 6% to $5.15 before the halt.

Why is this ASX All Ords insurance stock jumping?

Investors were fighting to get hold of the company’s shares today amid speculation that it could be the latest ASX All Ords stock to receive a takeover proposal.

In response to the speculation, the company has requested that its shares be suspended while it prepares to make an announcement. It stated:

The Company requests a trading halt pending an announcement by the Company with respect to media speculation in relation to potential takeover approaches for the Company. The Company requests the trading halt remain in place until the earlier of the Company releasing an announcement in response to the media speculation, or until the commencement of trading on Thursday, 14 March 2024.

What’s the speculation?

According to the AFR, the $1.9 billion insurance company has held “informal discussions with at least two offshore insurance brokers.” It has also reportedly hired Goldman Sachs to guide it through the preliminary takeover talks.

The company’s managing director, Tony Robinson, didn’t shut down the rumours when quizzed by the media outlet. He said:

At any period in time, we are talking to people and parties about ideas and opportunities. And that includes ideas around privatisation.

The rumoured suitors include US$55 billion giant Arthur J. Gallagher & Co. (NYSE: AJG) and the UK’s Ardonagh Group.

But with the ASX All Ords stock reportedly looking for a price of $2.3 billion, it remains unknown whether either of these parties will bite.

PSC Insurance Group shares are up a modest 7% over the last 12 months, whereas fellow insurance stock QBE Insurance Group Ltd (ASX: QBE) is up almost 20%.

The post Guess which ASX All Ords stock is suspended amid takeover rumours appeared first on The Motley Fool Australia.

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More reading

• US inflation is still running hot. So why did the S&P 500 just hit new record highs?
• Is the Nasdaq in a dotcom-style bubble?
• Metcash share price hits 52-week high on broker upgrade: Time to buy?
• Is this ASX 200 stock a shrewd buy ahead of the upcoming half-year result?
• Core Lithium shares crash 9% after posting massive half-year loss

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 positions in and has recommended Goldman Sachs Group and PSC Insurance Group. The Motley Fool Australia has recommended PSC Insurance 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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The S&P 500 (INDEXSP: .INX) closed up 1.1% yesterday (overnight Aussie time).

That saw the benchmark US index end the day at a new record closing high of 5,175.2 points. And it puts the index up a whopping 34.2% in 12 months.

It was only back in late January that the S&P 500 broke into all-time highs for the first time in almost two years.

But as we’ve witnessed with the series of recent record-breaking days on the S&P/ASX 200 Index (ASX: XJO), stock market records are falling hard and fast in these early months of 2024. Though unlikely to break last Friday’s all-time highs, the ASX 200 is up 0.2% in late morning trade today.

Although not quite breaking its own recent record highs, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) closed up 1.5%.

The Nasdaq’s strong performance was helped by a 7.1% gain in the Nvidia Corporation (NASDAQ: NVDA) share price. With shares up 300.2% in a year, the artificial intelligence company now has an eye-popping market cap of $US2.3 trillion (AU$3.5 trillion).

And all this on the day that US core inflation data came in hotter than expected.

S&P 500 dodges inflation scare

Investors sent the S&P 500 into new record territory despite February’s core consumer price index (CPI) coming in slightly above consensus expectations.

Core CPI, which excludes food and energy costs, was up 0.4% from January and up 3.8% over the past year.

That remains well above the US Federal Reserve’s 2% inflation target range. But investors are still betting on a series of interest rate cuts in 2024 from the world’s most influential central bank.

Commenting on the record-breaking run on the S&P 500, Josh Gilbert, market analyst at eToro said there could well be more gains ahead.

“We see markets as fundamentally supported and driven by the improving earnings cycle and coming interest rate cuts, with the Fed set to cut as early as June this year,” he said.

Gilbert added:

Inevitable pullbacks should be seen as an opportunity as these twin pillars remain in place. The fear of investing at highs is misplaced, especially if fundamentals remain supportive, as we see now.

Regan Capital’s Skyler Weinand also sounded a bullish note on the outlook for the S&P 500 (quoted by Bloomberg).

“It’s proving difficult to see what may stop the market’s momentum, as earnings, inflation, and interest rates are moving in the right direction,” Weinand said.

Indeed, a bit of ‘sticky’ inflation data doesn’t seem to have stopped the positive momentum for the S&P 500 in the least.

The post US inflation is still running hot. So why did the S&P 500 just hit new record highs? appeared first on The Motley Fool Australia.

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More reading

• Is the Nasdaq in a dotcom-style bubble?
• Metcash share price hits 52-week high on broker upgrade: Time to buy?
• Is this ASX 200 stock a shrewd buy ahead of the upcoming half-year result?
• Core Lithium shares crash 9% after posting massive half-year loss
• Liontown share price leaps 10% on fresh $550 million funding

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 positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. 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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US tech stocks have powered the Nasdaq-100 Index (NASDAQ: NDX) to a new all-time high in March. It has climbed 53% in the past year and 66% since the beginning of 2023. The Betashares Nasdaq 100 ETF (ASX: NDQ) has seen a similar rise.

But has it risen so far that it’s now in bubble territory like we saw in 1999? Around 24 years ago there was a big crash in tech stock valuations after going to extraordinary levels.

Bubble territory?

There has been enormous interest in artificial intelligence, leading to rising share prices for names like Nvidia and Microsoft.

While there has been a lot of market excitement about those stocks, those businesses have seen a large increase in revenue and profit. In contrast, the dotcom bubble saw crazy valuations for businesses that weren’t making much revenue, or none at all.

The Australian reported on comments from David Philpotts, the Schroders head of strategy for QEP global shares.

He doesn’t think the AI boom is a repeat of the late 1990s, suggesting that share prices and valuations were “far more reasonable” than the dotcom boom and currently they’re “not particularly expensive”. He then said:

Because of its strong earnings growth, Nvidia is actually looking quite reasonable. But the key question is how long that strong earnings growth keeps coming through.

Nvidia is doing very well. It recently announced quarterly revenue of US$22.1 billion, which was a 265% rise year over year, while annual revenue was up 126% to US$60.9 billion.

The estimate on Commsec suggests the business is valued at 37 times FY25’s forecast earnings.

Philpotts suggested there isn’t an obvious catalyst to turn investors off (NASDAQ) AI businesses. That could be helpful for supporting the Betashares Nasdaq 100 ETF unit price if there’s no obvious troubling bad news on the horizon.

Goldilocks to be achieved for the NASDAQ?

Central banks like the RBA have been trying to engineer a situation soft landing that reduces inflation but doesn’t put economies into a painful recession. The Goldilocks situation is finding the right balance. Philpotts was quoted by The Australian, saying:

My caveat is that hard landings look soft originally but it looks like we’re going to have something more like a Goldilocks scenario.

But in terms of what that means for markets, I think we’re on the cusp now of moving beyond the fundamentals. I’m not saying we’re in a bubble, but you could argue there’s lots of good news in the price. We’ve got some uncertainty this year around elections and geopolitics more generally.

I don’t know what the catalyst is going to be, but there’s a lot of good news in the price.

In the early stages of bubbles, there’s often a big theme, like AI, there’s often a lot of liquidity – and it’s debatable how much liquidity is out there, but it doesn’t feel like we’re in a tight environment now.

Normally in a bubble there’s an excessive amount of retail participation, which is not really the case now, despite some recent commentary about retail buying of Nvidia. We’re not seeing a retail buying frenzy like we have seen in the past, so you could argue the case for a melt-up from here.

While the NDQ ETF and NASDAQ could go higher, solid ongoing revenue/earnings growth would be necessary to keep delivering good US share market returns over the longer term at this level. But Philpotts is “modestly positive” on the ‘magnificent seven’ NASDAQ stocks, though he is least positive on Tesla and Apple.

He suggests there are better opportunities outside of the US, though there is more “cyclical risk”.

I think there are still opportunities in the ASX share space.

The post Is the Nasdaq in a dotcom-style bubble? appeared first on The Motley Fool Australia.

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More reading

• Can you buy Nvidia shares on the ASX?
• 4 ASX ETFs for smart investors
• 2 ASX ETFs for beginner investors to buy in March
• How to invest in the magnificent seven stocks on the ASX
• The Nasdaq just hit a fresh all-time high. What could it mean for Aussie investors?

Motley Fool contributor Tristan Harrison 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 Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple and Nvidia. 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 Metcash Ltd (ASX: MTS) share price is climbing again on Wednesday.

In morning trade, the wholesale distributor’s shares are up 2% to a 52-week high of $4.06.

Why is the Metcash share price rising again?

Investors have been buying the company’s shares today after brokers responded positively to its trading update.

In case you missed it, on Tuesday Metcash revealed that total group sales for the ten months to 25 February increased 0.9% compared to the prior corresponding period.

This reflects a 1.6% increase in Liquor sales, a 2.4% lift in Hardware sales, and flat Food (including tobacco) sales. If you exclude tobacco, food sales were up by a solid 5% for the 10 months.

One broker that was particularly pleased with the update was Macquarie.

According to a note out of the investment bank this morning, its analysts have upgraded the company’s shares to an outperform rating with a $4.30.

Based on the current Metcash share price, this implies potential upside of 6% for investors from current levels.

Macquarie is also expecting a 21 cents per share dividend in FY 2024. This equates to a 5.2% dividend yield, which boosts the total potential return to approximately 11%.

Elsewhere, the team at UBS has retained its buy rating with an improved price target of $4.25, and Jefferies has reaffirmed its buy rating with a higher price target of $4.30.

What else is being said?

One broker that isn’t feeling as bullish is Goldman Sachs. This morning it held firm with its neutral rating with an improved price target of $3.70.

Its analysts remain neutral given “intense competition in both Food and Hardware” and “higher interest expense” concerns. The broker also notes there are execution risks “as the business navigates significant organic and inorganic change.”

The post Metcash share price hits 52-week high on broker upgrade: Time to buy? appeared first on The Motley Fool Australia.

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• Metcash shares push higher on trading update
• Here are the top 10 ASX 200 shares today
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• Should you buy this ASX 200 stock for its 5%+ dividend yield?
• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead

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 positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Metcash. 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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Shares in the S&P/ASX 200 Index (ASX: XJO) stock New Hope Corporation Ltd (ASX: NHC) have fallen significantly since October 2023. Down more than 28% over that period, is the ASX 200 stock a smart, unloved buy?

Some investors may not buy into this company because it’s an ASX coal share.

For others interested in New Hope’s prospects ahead of its half-year result announcement next Tuesday (19 March), let’s look at whether now is a good time to invest.

Operational performance

The last major update we heard from the ASX 200 stock was its quarterly activities report for the three months to 31 January 2024. Performance and profitability are key for the ASX 200 stock.

New Hope advised it produced underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $179.9 million for the quarter, down 26.5% on the previous quarter primarily due to “realised pricing”. In other words, the coal price has been falling.

The FY24 first-half underlying EBITDA of $424.8 million was 59.1% lower compared to HY23’s figure of $1.04 billion.

The miner achieved an average realised sales price of A$180.64 per tonne for the quarter, compared to A$211.40 in the three months to October 2023.

It reported total saleable coal production was 2mt for the three months to January 2024, the same as the previous quarter. HY24 saleable coal production of 4.1mt was up 29.4% year over year.

The ASX 200 stock also revealed it generated an operating cash flow of $130.6 million for the first half, and it ended with available cash of $480.4 million after paying its dividends and FY23 income tax liability.

New Hope also recently took part in a capital raising in Malabar Resources. This increased its ownership to 19.9% of the business.

Is the ASX 200 stock a buy?

The fall of the New Hope share price has been accompanied by (or caused by) a drop in the coal price. Its profitability has decreased, which may justify the decline.

Analysts and brokers don’t seem to think it’s a buy. According to Factset, there are four hold ratings and two sell ratings on the business. However, the miner is still valued at a very low price/earnings (P/E) ratio.

According to Commsec, the New Hope share price is valued at 8x FY24’s estimated earnings and FY25’s estimated earnings. It’s projected to pay a grossed-up dividend yield of 10.5% in FY24 and FY25.

Even so, there may be plenty of other ASX shares that could be a more rewarding investment.

The post Is this ASX 200 stock a shrewd buy ahead of the upcoming half-year result? appeared first on The Motley Fool Australia.

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More reading

• Buying Soul Patts shares? Here’s what you’re really buying
• Why Lendlease, New Hope, Nuix, and Orora shares are dropping today

Motley Fool contributor Tristan Harrison 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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Core Lithium Ltd (ASX: CXO) shares are under pressure again on Wednesday.

In morning trade, the lithium miner’s shares are down 9% to 20 cents.

This leaves the company’s shares trading within touching distance of their record low.

Why are Core Lithium shares sinking?

Investors have been hitting the sell button today in response to the miner’s half-year results.

After the market close on Tuesday, Core Lithium revealed first-half revenue of $134.8 million and a loss after tax of $167.6 million.

This reflects a 75% decline in its spodumene concentrate realised price to US$2,098 per tonne and its decision to suspend production.

In addition, its loss after tax includes a non-cash impairment of $119.6 million and provisions for onerous contracts of $27.6 million.

Commenting on the half, the company’s CEO, Gareth Manderson, said:

I am pleased to be able to report that together with my team we have responded rapidly to the changing market conditions and taken the action required to put the business in the best position possible to weather the current market conditions. While this has meant suspending our mining activity, the processing of ore stockpiles provides an opportunity to generate revenue and puts the business in the best cash position possible to pursue the options available and realise value for our shareholders.

Though, Manderson won’t be sticking around to see how Core Lithium fares in the future. The CEO also announced his exit with these results. Doug Warden, Core Lithium’s current CFO, will assume the role as interim CEO while an executive search is undertaken.

Outlook

Core Lithium’s production will remain suspended for the foreseeable future and it will instead continue to process its existing ore stockpiles to produce spodumene concentrate.

In light of this, it has reaffirmed its revised guidance for FY 2024 production of 90,000 tonnes to 95,000 tonnes of 4.77% spodumene concentrate production and sales of 80,000 tonnes to 90,000 tonnes.

In addition, the miner’s exploration team is reviewing the local and regional prospectivity of its lithium tenements and gold, uranium, and base metal projects.

Core Lithium shares are now down almost 80% since this time last year.

The post Core Lithium shares crash 9% after posting massive half-year loss appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Core Lithium share price on watch amid $167m half-year loss and CEO exit
• Here are the top 10 ASX 200 shares today
• Why are short sellers shifting into ASX blue chips and out of lithium losers?
• These are the 10 most shorted ASX shares

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 Liontown Resources Ltd (ASX: LTR) share price is charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed yesterday trading for $1.32. At the time of writing on Wednesday, shares are swapping hands for $1.45, up 10.3%.

For some context, the ASX 200 is up 0.1% at this same time.

Here’s what’s happening.

ASX 200 lithium miner lifts off on funding agreement

The Liontown share price is racing ahead after the miner announced it has entered into a $550 million debt facility agreement.

The money will be used to ensure the Kathleen Valley Lithium Project, located in Western Australia, is funded through to its first production and the ramp-up to the company’s three million tonnes per year (Mtpa) base case.

The debt facility has flexible terms that enable refinancing prior to maturity if drawn.

The miner said there were no scheduled repayments and interest capitalised during the term of the debt facility, with a bullet payment due on maturity on 31 October 2025.

Liontown will use the proceeds drawn to refinance existing Ford debt, as well as fund construction and ramp-up of the Kathleen Valley Lithium Project. The debt facility will also provide working capital and liquidity.

Commenting on the $550 million funding that’s boosting the Liontown share price today, CEO Tony Ottaviano said, “Having this funding in place provides strong endorsement for our project and a platform of financial certainty from which to move forward.”

Ottaviano added, “We are consequently well-positioned to deliver the remaining milestones to first production mid-year and ramp-up towards anticipated positive cashflows.”

Liontown expects to initially draw down on the debt facility in early Q3 CY 2024.

Liontown share price snapshot

With today’s intraday moves factored in, the Liontown share price is down 15% year to date.

Over the past month, however, shares in the ASX 200 lithium miner have now soared 41%.

The post Liontown share price leaps 10% on fresh $550 million funding appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Liontown shares rocket 30% in a month ahead of Friday’s results
• Here are the top 10 ASX 200 shares today
• Is the Liontown share price ready for next week’s numbers?
• Why Coles, Liontown, Lovisa, and Wildcat shares are dropping 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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