Magnis Energy (ASX:MNS) share price lifts after FY21 annual report release

Let's take a closer look.

| More on:
ASX lithium shares record A line-up of green lithium batteries, indicating positive share price movement for clean ASX lithium miners

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Magnis Energy Technologies Ltd (ASX: MNS) share price has stepped into the green during morning trade on Friday. At the time of writing, Magnis is trading at $0.32, up 1.61%.

Magnis Energy shares are on the move despite there being no market sensitive information for the company today, although, it did release its annual report earlier.

Read on for more details.

Magnis Energy share price gains despite 13% decrease in total income

Magnis recognised a significant 27% downstep in total income for the year of $619,587, down from $851,880 in FY20.

However, it did make an almost $500,000 fixed asset sale in FY20, which could help explain the difference at that level.

After all, expenditures factored in, Magnis reported a net loss for the year of $16.3 million, primarily made up of $11.5 million in administration expenses – but well behind the net loss of $7.4 million in FY20.

This was adjusted to a year on year loss of only around $1.2 million after the company made a $7.6 million gain on its financial assets. Nonetheless, Magnis still recognised a 13% widening of its loss from FY20.

The company has also been busy at its Nachu Graphite project in Tanzania this year, conducting a review of optimal production levels at Nachu to get it functioning soon.

It has also continued land clearing and water bore development at the site alongside various social assistance programs.

Aside from this, Magnis also raised capital for its lithium-ion battery plant in New York, Imperium3. Magnis bought the plant as a part of a consortium of investors in 2018.

An asset management firm focused on energy and power invested $50 million into Imperium3 to ramp up production.

Magnis also raised $34 million from a placement to further increase its stake in Imperium3 and expand productions at the site.

With this move, it has made four new board appointments as a strategic manoeuvre to drive success at the Imperium3 site.

What's next for Magnins Energy?

The company wants to "be a key global player in the lithium-ion battery value chain of electric vehicles and clean energy storage".

As such it envisions that the Imperium3 plant will be at commercial production, "with fully optimised and automated lines" to meet customer demand in FY22.

Imperium3 will raise further capital in FY22, in order to finance an increase to the plant's capacity scale.

It also wants to "secure offtakes and finalise funding" for its Nachu Graphite project in Tanzania.

It's been a choppy year to date for the Magnis Energy share price, having gained 56%. Its collapsed 16% this past month and is around 1.5% in the red this week as well.

The author Zach Bristow 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 Bruce Jackson.

More on Resources Shares

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Down 14% in 2024, why is the BHP share price sliding again today?

ASX 200 investors are bidding down the BHP share price on Wednesday.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Resources Shares

These ASX 200 mining stocks could rise 40% to 50%

Analysts think these miners are dirt cheap at current levels.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

rising mining asx share price represented by happy woman miner in hard hat
Resources Shares

Why the BHP share price crushed the benchmark this week

BHP shareholders enjoyed a rewarding week.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Dividend Investing

Here is the profit forecast to 2026 for BHP shares

Let’s unearth how much profit this miner could make.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the worst of the selling now over for ASX iron ore shares?

ASX iron ore giants like BHP, Rio Tinto and Fortescue rebounded this week after falling hard in 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Why are ASX 200 mining shares smashing the benchmark on Wednesday?

Rio Tinto, BHP and Fortescue shares are all charging higher today.

Read more »

Two miners standing together.
Resources Shares

Why is the South32 share price getting battered today?

ASX 200 investors are bidding down South32 shares today.

Read more »