Why 29Metals, Base Resources, Qantas, and South32 shares are storming higher

These ASX shares are starting the week strongly. But why?

| More on:
Woman in celebratory fist move looking at phone

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and racing higher. At the time of writing, the benchmark index is up a sizeable 1% to 7,643.8 points.

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

29Metals Ltd (ASX: 29M)

The 29Metals share price is up 9% to 47.5 cents. This morning, this copper miner announced a binding terms sheet for a US$50 million offtake finance facility with Swiss mining giant Glencore. Funds from the proposed offtake facility will be available for draw down from financial close and will provide additional liquidity as its Capricorn Copper operation moves into suspension and is prepared for a successful and sustainable restart. In other news, insurers have committed to a further interim progress payment of $16 million for the surface component of its Capricorn Copper insurance claim. This increases aggregate insurance proceeds to date to $40 million.

Base Resources Ltd (ASX: BSE)

The Base Resources share price is up 110% to 22 cents. This has been driven by news that the minerals sands producer has entered into a binding scheme implementation deed (SID) with Energy Fuels. This will see Base Resources taken over in a deal worth 30.2 cents per share in scrip and cash. This values the company's total equity at approximately $375 million.

Qantas Airways Limited (ASX: QAN)

The Qantas Airways share price is up 3% to $5.79. This is despite Air New Zealand (ASX: AIZ) downgrading its full-year earnings guidance this morning. Qantas' rival warned that its "performance has seen ongoing softening, with challenging economic conditions and ongoing cost-of-living pressures." Though, with Air New Zealand shares rising on the news, it is possible that investors were pricing in even tougher trading conditions for airlines. This may explain why Qantas shares are rising today.

South32 Ltd (ASX: S32)

The South32 share price is up 6% to $3.38. This follows the release of the mining giant's third-quarter update. That update revealed that South32's production in FY 2024 is largely in line with expectations year to date. So much so, that the company remains on track to achieve almost all of its guidance for the financial year. The only disappointment was the Australia Manganese operation, which was impacted by Tropical Cyclone Megan last month. Its guidance has unsurprisingly been downgraded because of the disruption. Management advised that recovery plans are underway to enable a safe return to operations and ore exports.

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.

More on Share Market News

Young woman using computer laptop with hand on chin thinking about question, pensive expression.

Should you buy Telstra stock on a pullback?

Is this telco a buy for value hunters?

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Share Fallers

Why did the Core Lithium share price just crash 6%?

Investors are bidding down the Core Lithium share price today.

Read more »

Sports fans looking at smart phone representing surging pointsbet share price
Share Gainers

Guess which ASX All Ords share just rocketed 25% on an earnings upgrade

Investors are bidding up the ASX All Ords share following an improved FY 2024 earnings outlook.

Read more »

Young man sitting at a table in front of a row of pokie machines staring intently at a laptop. looking at the Crown Resorts share price
Mergers & Acquisitions

Are Star shares now rolling the dice on a rescue bid?

Rumour is that a US-based casino operator is ready to revamp this fallen star.

Read more »

A man closesly watch a clock, indicating a delay or timing issue on an ASX share price movement
Mergers & Acquisitions

BHP shares charging higher as the clock ticks down on the Anglo American takeover

BHP has less than three days before the clock runs down on its $64 billion Anglo American takeover bid.

Read more »

A bored woman looking at her computer, it's bad news.
Share Market News

These are the 10 most shorted ASX shares

Let's see which shares short sellers are targeting this week.

Read more »

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Broker Notes

Morgans says these ASX stocks can rise 20% (and pay big dividends!)

The broker believes some very big returns could be on the cards over the next 12 months.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Share Market News

5 things to watch on the ASX 200 on Monday

A positive start to the week is expected for Aussie investors.

Read more »