Why Chalice, De Grey, Estia Health, and Fortescue shares are racing higher

These ASX shares are rising on Thursday…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of Wall Street and is tumbling lower. At the time of writing, the benchmark index is down 0.65% to 7,376.6 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are racing higher:

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price is up a further 7% to $9.80. Investors continue to buy this mineral exploration company’s shares following the release of an update on its Gonneville deposit. That update reveals the largest nickel sulphide discovery in over 20 years and the largest platinum-group elements (PGE) discovery in Australian history. Bell Potter was impressed. It retained its (speculative) buy rating and lifted its price target by 85% to $11.73.

Estia Health Ltd (ASX: EHE)

The Estia Health share price is up over 5% to $2.21 following the release of its annual general meeting update. At the event, the aged care operator reported that its occupancy rate stood at 92.8% at the end of October. This was broadly in line with levels reported in August. Management also advised that cash flows have been solid and its debt has been further reduced to $57.5 million.

De Grey Mining Limited (ASX: DEG)

The De Grey Mining share price is up 4% to $1.20. This morning the gold explorer announced consistent infill results in Brolga Stage 1 pit. Management notes that results demonstrate thick mineralised intervals in the centre of Brolga. This could be a big positive as the recently announced scoping study of the Mallina Gold Project identified Brolga as an early production source.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price has jumped 8.5% to $15.51. This is despite there being no news out of the iron ore producer on Thursday. However, reports that embattled Chinese property giant Evergrande has avoided defaulting could be boosting Fortescue’s shares. If Evergrande were to collapse it could have dire consequences for the Chinese property market and iron ore demand.

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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 Bruce Jackson.

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