ASX 200 recovers, Evolution Mining acquisition, Afterpay sinks

S&P/ASX 200 Index (ASX:XJO) recovered after an initial selloff in the morning. Evolution Mining Ltd (ASX:EVN) announced an acquisition.

The S&P/ASX 200 Index (ASX: XJO) ended flat, after being down earlier in the day, ending at 6,773 points.

One of the worst performers in the ASX 200 was the Afterpay Ltd (ASX: APT) share price which fell 4.5%.

Here are some of the highlights from the ASX:

a woman

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price rose today in reaction to a Canadian acquisition. The gold miner said that it's buying Battle North Gold Corporation for C$343 million, which equates to a price of C$2.65 per share – it's listed in Canada.

This purchase price is a 46% premium to the closing share price from last week.

Battle North's CEO, George Ogilvie, explained the benefits of joining the two businesses together to progress the Bateman Gold Project further:

We believe that there are unique and undeniable merits to combining the Red Lake assets of Battle North and Evolution and this transaction reduces development and execution risk. Evolution is a highly regarded mining company with a demonstrated ability to successfully operate internationally.

Jake Klein, the executive Chair of Evolution, said what this would do for the ASX 200 gold miner:

This acquisition provides Evolution with an opportunity to expand our footprint in the region and create value by leveraging the infrastructure of the two operations. The additional processing capacity from the new Bateman mill will also accelerate our ability to achieve our objective of producing in excess of 300,000 ounces of gold per annum from Red Lake.

People Infrastructure Ltd (ASX: PPE) acquisition

People Infrastructure announced that it's acquiring a leading Melbourne nursing agency.

It has entered into a binding agreement to buy the SwingShift Nurses business. This company is focused on the mental health market and it's a contracted supplier to most public sector hospitals in Victoria.

The acquisition price is $3.1 million payable in cash and it's expected to add to earnings per share (EPS) accretive. People Infrastructure expects this business to generate $1 million of earnings before interest, tax, depreciation and amortisation (EBITDA) in the 12 months after completion.

People Infrastructure CEO Mr Declan Sherman said:

The acquisition of SwingShift Nurses is highly complementary to our existing Victorian nursing staffing business. The business is well established in the Victorian market and will facilitate further growth into the mental health market. People Infrastructure is especially attracted to the business due to its strong position in the Victorian specialist nursing on-hire contracting market, and its long term relationships with its customers.

The People Infrastructure share price went up more than 2% in reaction.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price also went up around 2% after it announced that Yibin Tianyi Lithium Industry Co Ltd will provide a US$15 million unsecured prepayment to Pilbara, contributing to the funding of the A$22 million improvement works underway on plant 1 at Pilgangoora.

The prepayment will be provided in support of additional uptake of up to 40,000tpa of spodumene concentrate for Yibin Tianyi.

Site works will commence on the stage 1 improvement works this month, with commissioning expected in the quarter ending 30 September 2020.

Pilbara Minerals managing director and CEO Ken Brinsden said:

Our relationship continues to grow with Yibin Tianyi as we work together in support of both our businesses' growth ambitions. For Yibin Tianyi, to become one of the biggest lithium chemical suppliers in China with the support of our major shareholders, CATL and for us to become one of the largest, lowest cost lithium raw material suppliers in the world.

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of People Infrastructure Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended People Infrastructure Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ASX Share Market News

Smiling man working on his laptop.
Best Shares

BHP vs Codan: Which ASX 200 share is the stronger buy today?

BHP and Codan are both flying, but which ASX share is truly the better buy today? I break down the…

Read more »

Watering can pouring water on increasing piles of coins with green plants on them and a piggy bank and coins on the table.
Opinions

$3,000 buys 1,463 shares in an impressively reliable ASX dividend stock

Here’s what makes this stock one of the best picks for dividends, in my view.

Read more »

A woman is very excited about something she's just seen on her computer, clenching her fists and smiling broadly.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy end to the trading week for investors this Friday.

Read more »

REIT on wooden circles with real estate investment trust written above on a yellow background.
REITs

6 ASX REITs just hit 52-week lows. Do any brokers say buy?

Several ASX real estate investment trusts (REITs) have hit 52-week lows as the property sector underperforms the market on Friday.…

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Broker Notes

Buy, hold, sell: CBA, Capstone Copper, Codan shares

Let's take a look at some new ratings from the experts.

Read more »

a woman peers over a surface with a happy, curious look on her face with eyes wide as though she is overhearing something.
Broker Notes

5 ASX 200 shares brokers tip to rocket 25% to 77%

Looking for buy-the-dip opportunities in today's weak market? Experts reveal their buy calls.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Broker Notes

Morgans tips 290% upside for this up-and-coming ASX copper company

This company is in the right place at the right time, the broker says.

Read more »

A woman in a red dress holding up a red graph.
Broker Notes

In a tough retail environment, what's the outlook for Wesfarmers shares?

Analysts argue the major retailer is resilient in the face of tough trading conditions.

Read more »