The analyst team at Canaccord Genuity subsequently ran the ruler over the company and upgraded its share price for it, which we'll get to shortly.

Firstly, let's look in more detail at what the company has reported.

Major milestone achieved

Centaurus said in a statement to the ASX on Monday that it had signed a binding offtake agreement with Glencore, "marking a key step in advancing the project towards development''.

The company added:

The Agreement is for the supply of 20,000 dry metric tonnes per annum of high-grade (32%) nickel concentrate (6,400 tonnes per annum of nickel in concentrate) to Glencore, with the base destination of Canada for treatment at Glencore's Sudbury smelting operations, and commencing from the beginning of 2029 for a period of five years. The Offtake Agreement with Glencore represents approximately 30% of the planned annual production from Jaguar, with Centaurus retaining flexibility over how the balance its production will be used to support the funding of the Jaguar Project in advance of a Final Investment Decision (FID).  

Pricing under the offtake agreement would be linked to the price of nickel on the London Metals Exchange, the company said, and there would also be credits paid for any copper and cobalt byproducts in the concentrate.

The agreement is subject to the Centaurus board making an FID by 30 September this year and first concentrate production being achieved by 15 January 2029.

The estimated value of the agreement is more than US$450 million over the initial five-year contract term.

Centaurus Managing Director Darren Gordon said it was a milestone for the company.

The signing of our first binding offtake agreement for nickel concentrate production with Glencore is a significant achievement for Centaurus and the Jaguar Nickel Project. Glencore is one of the biggest names in natural resources globally and one of the longest-standing integrated participants in the nickel sector. Signing them up as a long-term offtake partner is a major coup that validates the quality of the Jaguar Project and supports our commercial development strategy. We look forward to building a sustainable low-cost supply of low carbon nickel in Brazil supported by Glencore's long history in the sector and their deep knowledge of the market. Importantly, the Offtake Agreement will support and help de-risk the ongoing debt and equity funding processes which we currently have underway.

Centaurus shares looking cheap

The team at Canaccord Genuity said they believed the agreement was "a significant step toward the project's commercial development''.

Canaccord has raised its price target on Centaurus shares to 85 cents, up from 80 cents, compared with the current share price of 53 cents.

If achieved, this would constitute a 60.3% increase. Centaurus was valued at $288.2 million at the close of trade on Monday.

The post Which ASX mining project developer is 60% undervalued according to Canaccord Genuity? appeared first on The Motley Fool Australia.

Some invest in safe-haven stocks and assets, while others are willing to take on more risk in the hope of hitting the jackpot.

The Australian recently compiled a list of 10 Australian billionaires, and the stocks they like to invest their money into.

Gina Rinehart

The Australian heiress, billionaire mining magnate, and businesswoman has built a $2 billion stock portfolio through Hancock Prospecting. It consists mainly of mining stocks and exchange-traded funds. The company owns shares in US-listed stocks such as Tesla Inc (NASDAQ: TSLA), Fox Corp (NASDAQ: FOX), and Trump Media & Technology Group Corp (NASDAQ: DJT).

Hancock Prospecting also has exposure in Australian markets. Hancock is a major shareholder in gold producer Ballard Mining Ltd (ASX: BM1), which floated on the ASX on July 14, 2025. 

Gerry Harvey

Australian entrepreneur and executive chairman of Harvey Norman Holdings Ltd (ASX: HVN), Gerry Harvey, backs New-Zealand based Briscoe Group Ltd (ASX: BGP). Briscoe comprises homewares stores and now Rebel Sports outlets. 

Bruce Mathieson

Bruce Mathieson is known for his influence in the Australian pub, hotel, and gambling sectors. 

According to The Australian, Mathieson has some of his fortune locked up in Endeavour Group Ltd (ASX: EDV) shares, shares in Star Entertainment Group Ltd (ASX: SGR), and shares in Mayne Pharma Group Ltd (ASX: MYX). He also has shares in RAS Technology Holdings Ltd (ASX: RHL).

Chris Morris

Chris Morris built share registry services firm Computershare Ltd (ASX: CPU) and maintains a large holding in the business. He also has shares in US data storage company Seagate Technology Holdings PLC (NASDAQ: STX).

James Packer

The Crown Resorts Ltd (ASX: CWN) king sold out of the business in 2022 and has since invested money into US technology stocks. His biggest holdings are in Nvidia Corp (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing Co Ltd (TPE: 2330), Shopify Inc (NASDAQ: SHOP), Spotify Technology SA (NYSE: SPOT), and Monday.Com Ltd (NASDAQ: MNDY).

Alan Rydge

Alan Rudge's wealth is mostly in two ASX-listed companies, which he has led for 45 years – Carlton Investments (ASX: CIN) and EVT Ltd (ASX: EVT). He is also a long-time stockholder of Harvey Norman shares.

Ed Craven

Ed Craven is Australia's youngest billionaire. He is well known for his cryptocurrency gambling empire Stake.com, and Kick streaming. He and his business partner Bijan Tehrani also have a 5% shareholding in Australian bookmaker Pointsbet Holdings Ltd (ASX: PBH).

Bruce Gordon

Bruce Gordon owns the Australian television network WIN Television through his ownership of WIN Corporation, the largest shareholder of Nine Entertainment Co Holdings Ltd (ASX: NEC). He also has shares in Singapore's mobile and telecommunication network Tuas Ltd (ASX: TUA).

Kerry Harmanis

Kerry Harmanis was the founder and executive chairman of Jubilee Mines NL, a highly successful Western Australian nickel miner which he established in 1987. Today, he still dabbles in mining shares, including Talisman Mining Ltd (ASX: TLM) and Centauras Metals Ltd (ASX: CTM).

Mark Creasy

Mark Creasy is one of Australia's most successful prospectors. He has a minority stake in nickel and lithium miner IGO Ltd (ASX: IGO), as well as a handful of other mining stocks. He recently invested into exploration company Lexington Gold Ltd (LON: LEX).

The post Australian billionaires: Which stocks do they own? appeared first on The Motley Fool Australia.

That's because junior miners are often involved in exploration and that tends to have a binary outcome — you either find the mineral or you don't.

But if you can manage to buy those stocks when there are green shoots of success, it could be very rewarding.

Here are two examples that Argonaut associate dealer Harrison Massey rates as a buy:

A 'transformational' project

Centaurus Metals Limited (ASX: CTM) has made a significant move that makes Massey bullish for the $380 million company.

"This aspiring nickel sulphide producer recently acquired the offtake rights to future production at its Jaguar Project in Brazil, which we believe is transformational for the company," Massey told The Bull this week.

"Centaurus now has control and options over future nickel sales from Jaguar."

This all points to a bright future for the stock, according to the Argonaut team.

"In our view, Centaurus Metals is the best positioned undeveloped nickel stock on the market."

The Centaurus share price has dipped 18.5% since the start of the year.

Massey and his colleagues aren't alone in their enthusiasm.

According to CMC Markets, all five other analysts that cover Centaurus rate the stock as a buy.

'A potential takeover target'

ASX gold shares continue to look attractive to investors as uncertainty reigns over the economy.

Predictive Discovery Ltd (ASX: PDI) is Massey's pick in this area.

"Predictive Discovery owns and operates the Bankan Gold Project in Guinea," he said.

"The company recently announced a resource upgrade to its growing 4.2 million ounce gold project, giving the asset the necessary size and scale to move towards production in coming years."

The quality of that asset has top-notch potential, according to Argonaut analysts.

"We believe Bankan is a tier 1 gold project, and the company is a potential takeover target for several producers in the region."

Predictive Discovery shares have sunk 10.5% year to date.

Similar to Centaurus, Predictive is widely popular with professional investors.

All five of the other analysts surveyed on CMC Markets currently rate the stock as a strong buy.

The post 'Best positioned': 2 ASX mining shares about to explode appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Bega Cheese Ltd (ASX: BGA)

The Bega Cheese share price is down 7.5% to $3.14. This morning, analysts at Bell Potter downgraded this diversified food company's shares to a hold rating with a reduced price target of $3.50 (from $4). It said: "We downgrade our NPAT forecasts by -50% in FY24e and -40% in FY25e, reflecting a higher FMP and higher lease costs, reflecting both the timing and value of the Vegemite Way sale."

Capitol Health Ltd (ASX: CAJ)

The Capitol Health share price is down 7% to 26 cents. Investors have been selling this diagnostic imaging provider's shares following the release of a trading update. Capitol Health advised that it expects to deliver revenue over $208 million in FY 2023 with operating EBITDA of $39.3 million to $40 million. This appears to be short of expectations.

Centaurus Metals Limited (ASX: CTM)

The Centaurus Metals share price is down 5% to 86.5 cents. This is despite the release of a presentation at the Macquarie Critical Minerals Forum this afternoon. That presentation spoke positively about its plans to develop the world's next significant green nickel project.

Seek Ltd (ASX: SEK)

The Seek share price is down 1.5% to $21.16. This is despite there being no news out of the job listings giant. However, its shares have been on a downward trend this month. So much so, they are now down over 12% since this time last month.

The post Why Bega Cheese, Capitol Health, Centaurus Metals, and Seek shares are falling appeared first on The Motley Fool Australia.

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

Abacus Property Group (ASX: ABP)

The Abacus share price is up 7% to $2.76. This morning, this property company announced the successful completion of the institutional component of the Abacus Storage King (ASK) 1 for 5.6 pro-rata securityholder offer. The offer was well supported by a combination of existing Abacus securityholders and new eligible institutional investors.

Centaurus Metals Limited (ASX: CTM)

The Centaurus Metals share price is up 13% to 88.5 cents. This follows news that Centaurus has acquired offtake rights over the Jaguar nickel sulphide project in Brazil from Vale. This is in exchange for an increase in Vale's net operating royalty over the project by 1.2% for nickel sulphate product and 1.25% for nickel concentrate and other products.

Pointsbet Holdings Ltd (ASX: PBH)

The Pointsbet share price is up over 19% to $1.63. Investors have been buying this sports betting company's shares after it announced the receipt of a competing offer for its US operations. DraftKings Inc (NASDAQ: DKNG) has offered US$195 million for the business, which is meaningfully higher than Fanatics Betting and Gaming's offer of US$150 million. Due diligence access has been granted to DraftKings.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is up over 2% to $39.48. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has upgraded this retail giant's shares to a buy rating with a $43.00 price target. Its analysts expect Woolworths to continue winning market share.

The post Why Abacus, Centaurus, Pointsbet, and Woolworths shares are racing higher appeared first on The Motley Fool Australia.

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

ALS Ltd (ASX: ALQ)

The ALS share price is up almost 5% to $12.09. Investors have been buying this testing services company's shares after it released a trading update. ALS advised that it has continued to successfully execute its strategic growth agenda, delivering strong growth. So much so, it has upgraded its FY 2023 underlying net profit after tax guidance range to between $312 million and $322 million. Its previous guidance was $300 million to $320 million.

Centaurus Metals Limited (ASX: CTM)

The Centaurus Metals share price is up 5.5% to 95 cents. This morning, this nickel explorer announced outstanding high-grade results from stepout drilling at its Jaguar operation. Management believes these results reinforce the world-class nature of the Jaguar Deposit, supporting its expectations for further resource growth.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up almost 3% to $3.96. Investors have been buying this lithium miner's shares after it announced that its board has approved the capital investment for the P1000 Project. This will ultimately see the Pilgangoora Project increase its spodumene production capacity by 320,000 tonnes to 1 million dry metric tonnes (dmt) per annum.

Westgold Resources Ltd (ASX: WGX)

The Westgold share price is up 4% to $1.25. This follows the release of an update on the gold miner's Big Bell mine. According to the release, Westgold's drilling has identified high grade potential beyond current pre-feasibility study limits.

The post Why ALS, Centaurus Metals, Pilbara Minerals, and Westgold shares are rising today appeared first on The Motley Fool Australia.

But even they have cooled off in the second half of 2022, due to concerns about recession around the globe. That's because when economies slow down, commodity prices are the first to plunge.

So as we sit waiting for yet another interest hike on Tuesday, which are the ASX shares involved in the resources sector that are the best buys at the moment?

A panel of Wilson Asset Management analysts answered this question in a recent video:

'Definitely a buy' for early-stage miner

Equities dealer Will Thompson said that his team recently met with the management of Centaurus Metals Limited (ASX: CTM).

"It's a really good company. We really like it," he said.

"The ability to grow the resource… will then lead to financing discussions… and they'll update the DFS [definitive feasibility study]."

With the share price down 36% since mid-April, Thompson reckons the valuation is attractive right now.

Centaurus acquired its current flagship project Jaguar from Brazilian giant Vale SA (BMF: VALE3) in 2020, and Thompson suspects that's not the end of the story.

"They have some interesting relationships with Vale. You've got an offtake, and it's still up for negotiation. At this stage [Centaurus] is definitely a buy."

Gold miner 'keeping costs down'

Thompson also rates Emerald Resources NL (ASX: EMR) as a buy.

He admitted gold stocks have been on the nose with the market in recent times.

"They've been able to keep their costs down — still keep producing at under $1,000 an ounce."

Emerald has also acquired "a really interesting" new project named Bullseye.

"They're also looking at developing a second mine in Cambodia," said Thompson.

"So we think there's some good valuation upside there. It's a buy."

The Emerald share price is down 4% so far this year, but has picked up more than 20% since a July trough.

Upside to 2023 guidance

Wilson senior equity analyst Shaun Weick likes the indirect resources exposure of NRW Holdings Limited (ASX: NWH).

"Mining services is back!" he said.

"FY 2022 results came in at slightly ahead of expectations and really reflects the worth of the COVID impact being behind these companies."

In Weick's view, the outlook for commodity demand remains strong.

"Order books are full, which provides good visibility. We see upside to the FY23 earnings guidance."

In a tough year, the NRW share price is amazingly 29% higher than where it started in 2022.

Weick also feels the business is in a healthy state financially.

"The balance sheet is net cash, and valuation is screening compelling. We think it's a buy."

The post 3 small-cap ASX mining shares ripe for adding now: experts appeared first on The Motley Fool Australia.

So-called 'green metals' are those used in cleaner-energy applications. Such shares on the ASX include Pilbara Minerals Ltd (ASX: PLS), Firefinch Ltd (ASX: FFX), and Mineral Resources Ltd (ASX: MIN). Others include Centaurus Metals Limited (ASX: CTM) and Liontown Resources Limited (ASX: LTR).

So what is the outlook for ASX green metals shares?

Green metal transition

Green metals are metals that will be prominent in the transition from fossil fuels to clean energy. They include lithium, graphite, rare earths, nickel, and copper.

Asked if a bubble could be developing in the sector, Argonaut Natural Resources Fund portfolio manager David Franklyn told the Australian Financial Review:

The green materials sector is certainly volatile, which in part reflects the fact that demand is rising quicker than supply. This has been evident in the huge increase in spodumene prices and the spike in nickel prices.

Against that backdrop, it's not unexpected that the sector may attract speculative money whilst also making the valuation of stocks more problematic.

A stock market bubble can form when there is a significant surge in share prices beyond the fundamental value of the companies.

Franklyn noted there has been a strong rebound of multiple lithium stocks in March, including Pilbara and Firefinch.

Share price recap

The Pilbara Minerals share price has soared 26% in a month while Firefinch has rocketed 73%. Meanwhile, Mineral Resources has gained 24%, Liontown Resources has leapt 28%, and Centaurus Metals has surged 17%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has jumped just under 6% in a month.

The post Is a bubble forming for ASX green metals shares? appeared first on The Motley Fool Australia.

• The Centaurus Metals share price is sinking by more than 7% in afternoon trading
• The company is conducting a $75 million capital raise
• The funds will help pay for its Jaguar Nickel Sulphide project.

The Centaurus Metals Limited (ASX: CTM) share price is plunging today amid a capital raise announcement.

The company's shares are currently swapping hands at $1.19, down 7.39%. They had been placed in a trading halt on Wednesday morning ahead of the impending announcement.

Let's take a look at what the mineral exploration company revealed today.

What's weighing on the Centaurus Metals share price?

Investors are pushing down the Centaurus Metals share price after the company announced it is conducting a capital raise for its Jaguar Nickel Sulphide project.

Centaurus Metals will conduct a $75 million institutional placement at $1.16 per share. The company said it had received support from more than 20 Australian and international institutional investors.

The company is raising the funds for a definitive feasibility study for the mine and to keep up its drilling program.

The Jaguar Nickel Sulphide project in northern Brazil is 100% owned by Centaurus Metals. The company is planning a 90,000 metre exploration venture in 2022 involving "significant ongoing diamond drilling".

In December, the company revealed it had seen a 30% increase in its mineral resource estimate at the project.

The capital raise will also help the company fund pre-development and financing activities ahead of a final investment decision on the project in the third quarter of 2023.

The placement will increase the company's cash balance to $83 million.

Management commentary

Speaking about the capital raise, managing director Darren Gordon said:

We are delighted with the very strong level of interest received from global investors for this milestone capital raising – which really puts Centaurus in an outstanding position to realise our objective of becoming one of the world's next significant green nickel producers.

The strong interest in this raise reflects both the scale and quality of the Jaguar Project and its impeccable ESG credentials, combined with the clear corporate strategy we have outlined to bring it into development as quickly as possible.

Centaurus Metals will issue 64,655,172 new shares to the market on February 1.

Centaurus Metals share price snapshot

The Centaurus Metals share price has returned around 37% in the past year. In the past month, it has gained just over 2% while it is down more than 17% in the past week.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO)'s has returned 5.6% over the past 12 months.

The post The Centaurus Metals (ASX:CTM) share price is tumbling 7% today. Here's why appeared first on The Motley Fool Australia.

Centaurus shares are on the move as the company released a key announcement earlier and are now changing hands at $1.07 apiece, a 10% jump from the open.

Let's investigate further.

What did Centaurus Metals announce?

Centaurus advised it had intercepted "significant zones of nickel sulphide mineralisation at (its) Tigre prospect". This find highlights the "outstanding growth and upside potential" across the company's Jaguar project, as per the release.

The drilling program revealed "significant percentages" of sulphide mineralisation of thicknesses "up to 10 metres" and over a strike length of "at least 700 metres".

A diamond rig that was mobilised recently to the Tigre site has also intersected a 5.8 metre zone of "stringer and net textured" nickel sulphides.

Centaurus stated that success at its Tigre site has "increased the prospectivity of the dacite basement genesis contact" that extends towards its next drilling target.

As a result of this activity, the company now has "several diamond rigs on site" and another rig set to arrive in the next few weeks.

Drilling is therefore set to ramp up at the site over the coming periods.

What did management say?

Centaurus' managing director Darren Gordon said on the results:

We have a pipeline of outstanding greenfields exploration prospects that we are now systematically testing with
the RC rig. All these targets are located within a 5km radius of the proposed Jaguar Project ROM pad and, as such, any new discoveries from the greenfields drilling have the potential to contribute to mine life extensions beyond the current 13 years.

Speaking on the upcoming activity, Gordon added:

We now have eight rigs on site with another rig to arrive in the coming weeks. This expanded drilling capacity will
allow us to continue aggressive work on both greenfields and resource drilling in conjunction with the development drilling required for project development activities. This multi-pronged approach sets us up for what should be a big second half of project growth at Jaguar.

Centaurus Metas share price snapshot

The Centaurus share price has climbed 31% into the green over the year to date. This extends the gain over the last 12 months to 124%.

These returns have outpaced the S&P/ASX 200 index (ASX: XJO)'s return of around 25% over the past year.

The post Centaurus Metals (ASX:CTM) jumps 12% on Greenfields nickel sulphide discovery appeared first on The Motley Fool Australia.

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

Centaurus Metals Limited (ASX: CTM)

The Centaurus Metals share price is up 11% to $1.08. Investors have been buying the mineral exploration company's shares following the release of a positive drilling update. According to the release, its maiden regional exploration drilling has intersected significant zones of nickel sulphide mineralisation at the Tigre Prospect. Management believes this highlights the outstanding growth and upside potential across the Jaguar Project.

IGO Ltd (ASX: IGO)

The IGO share price is up 5% to $9.62. This appears to have been driven by increasingly bullish sentiment in the battery materials industry. A number of companies with exposure to clean energy materials are storming higher again on Friday. One broker that probably isn't buying IGO shares is Credit Suisse. This morning it held firm with its neutral rating and $9.20 price target.

Novonix Ltd (ASX: NVX)

The Novonix share price is up 8% to $5.97. This battery materials company's shares have been on fire this week after being added to the ASX 300 index at the next quarterly rebalance. In addition to this, as mentioned above, Novonix continues to benefit from bullish sentiment in the battery materials sector. The Novonix share price is up 22% this week.

Rhinomed Ltd (ASX: RNO)

The Rhinomed share price is up 16% to 43.5 cents. Investors have been fighting to get hold of its shares after it announced a deal with the Victorian government. According to the release, the Victorian Department of Health has made an initial purchase order for 1 million Rhinoswabs from the company.

The post Why Centaurus Metals, IGO, Novonix, Rhinomed shares are storming higher appeared first on The Motley Fool Australia.

In addition, whereas the S&P/ASX 200 Index (ASX: XJO) has posted a return of 2.66% over the last month, Centaurus shares have climbed 29.5% into the green over this time.

Let's zoom in on what's behind the rise of the Centaurus Metals share price over the last week.

Jaguar Nickel Sulphide project to be class-leading

Centaurus announced on 2 August that its Jaguar Nickel Sulphide mine in Brazil was potentially "one of the world's foremost nickel projects in terms of its carbon footprint".

A Centaurus commissioned study by a "specialist metals and mining ESG research company" designated that label for the company.

As a result, Centaurus believes it is in a prime position to drive investment from "leading ESG-focused investors and institutions".

In addition, the study results confirm the Jaguar project's status as a "class leading" site that can process a "nickel sulphate product on site".

The Jaguar site also has other "unique attributes" that fold into its low-emissions designation, thereby reducing its carbon footprint. For instance, it is "largely" powered by renewable energy.

Moreover, Jaguar produces E1 emissions at "4.69 tonnes of CO2/tonne of nickel equivalent". This comes in at a lower rate than "97% of existing global nickel production", as per the company.

The Centaurus Metals share price has climbed 9.2% into the green since the open on 2 August, also setting a 52-week high.

Centaurus shares are now exchanging hands at $1.01 apiece, a 1.5% gain on the day.

Centaurus Metals share price snapshot

The Centaurus Metals share price has posted a year to date gain of 23%, extending the previous 12 month's return of 104%.

These results have outpaced the broad index's climb of around 26% over the past year.

At the time of writing, Centaurus has a market capitalisation of $356 million.

The post Why the Centaurus Metals (ASX:CTM) share price is up 17% in a week appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are sinking lower:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price has fallen 3.5% to $7.37. This infant formula company's shares have come under pressure this week after being downgraded by analysts at Morgans. The broker has suggested that an inventory build up and discounting could lead to a2 Milk falling short of its downgraded guidance in FY 2021.

Centaurus Metals Limited (ASX: CTM)

The Centaurus Metals share price is down 3.5% to 67.5 cents. This is despite the company announcing that it has secured possession of a further key piece of land that covers its 100%‐owned Jaguar Nickel Sulphide Project in northern Brazil. According to the release, the latest agreement covers an area of approximately 480 hectares and provides further security of land possession for the long‐term benefit of the Project. Weakness in the nickel price overnight could be weighing on its shares.

Kogan.com Ltd (ASX: KGN)

The Kogan share price has crashed 14% to $10.70. Investors have been selling the ecommerce company's shares following the release of a disappointing third quarter update. While Kogan's top line growth was strong, a jump in operating costs led to its operating earnings declining 24% compared to the prior corresponding period.

Youfoodz Holdings Ltd (ASX: YFZ)

The Youfoodz share price has sunk 14% to 60.5 cents. This morning the ready-made meals company released its third quarter update and revealed a 23.6% increase in prepared meals to a total of 4.9 million. This underpinned an 18.2% increase in gross revenues to $35.3 million. However, due to weak demand in the B2B market, Youfoodz advised that it would fall short of its revenue and EBITDA guidance.

The post Why a2 Milk, Centaurus Metals, Kogan, & Youfoodz are sinking today appeared first on The Motley Fool Australia.

What was in the announcement?

Centaurus Metals said it had identified significant thick semi-massive to massive nickel sulphide intercepts in recent drilling at the Jaguar Central deposit.

The company identified 33.7 metres at 2.23% nickel from 45.6 metres, 15 metres at 2.42% nickel and 8.2 metres at 1.22% nickel at the deposit.

New drilling at the Jaguar North deposit had also intersected semi-massive sulphides 100m beyond the current limits of the existing mineral resource, with assays currently pending.

Centaurus Metals said the company's recent $25.5 million capital raising would accelerate drilling work significantly. At the time of the announcement, Centaurus Metals had a cash position of around $28 million.

How good is that?

Centaurus Metals managing director Darren Gordon said the latest results included "some of the best drilling results generated from the Jaguar Project to date".

Mr Gordon said the results boosted confidence in the company's potential to grow the mineral resource in line with a plan to establish a sustainable high-margin nickel sulphide mine in Brazil within the next 3-4 years.

"These results are now building on the impressive maiden resource estimate we announced in June, which already contains more than 500,000 tonnes of nickel at an average grade of over 1.0% nickel," he said.

About the Centaurus Metals share price

Centaurus Metals is an exploration company with a focus on the Jaguar nickel project in Brazil. 

In the quarter to June 30, 2020, Centaurus Metals used $2,536,000 cash in operating activities. The company had cash at June 30 of $4,996,000, this was down from $7,539,000 at the end of the previous quarter. 

In July, the company announced a $25.5 million capital raising at $0.42 cents per share, including a cornerstone investment from Canadian-based Dundee Goodman Merchant Partners. The funds are allocated for drilling, a scoping study and a pre-feasability study for the Jaguar project.

The Centaurus Metals share price has skyrocketed 647% from its 52-week low of $0.075 cents. It has returned 211% since the beginning of the year. The Centaurus Metals share price is up more than 6% at the time of writing to $0.52 cents.

The post The Centaurus Metals share price is up 6% today. Here's why appeared first on The Motley Fool Australia.

At the time of writing, Centaurus Metals shares have jumped 32.84% to trade at 44.5 cents apiece. This rise takes the company's current market capitalisation to around $116 million.

About Centaurus Metals

Centaurus is an exploration company focused on the development of its wholly-owned Jaguar Nickel-Sulphide Project located in the Carajás Mineral Province in Brazil.

The company acquired the Jaguar Project from global mining giant Vale S.A. in September 2019. Vale completed a historical non-JORC MRE in 2010, which comprised 40.4 million tonnes at 0.78% nickel for a total of 315,000 tonnes of contained nickel.

Additionally, Centaurus holds the development-ready Jambreiro Iron Ore Project, which is located in south-east Brazil. It is a fully permitted, wholly-owned project that is licensed for 3 million metric tonnes per year of production.

Why is the Centaurus Metals share price surging? 

This morning, Centaurus announced a maiden JORC 2012 indicated and inferred MRE of 48 million tonnes at 1.08% nickel for a total of 517,500 tonnes of contained nickel for its Jaguar Project.

What's more, this maiden MRE includes a higher-grade component of 20.6 million tonnes, grading 1.56% nickel for 321,400 tonnes of contained nickel. The company noted that this provides an "outstanding" platform from which to commence scoping and development studies.

This maiden MRE is based on more than 65,000 metres of diamond drilling, including 218 diamond drill holes.

"This is a phenomenal starting point confirming Jaguar's status as a new globally-significant nickel sulphide project," said managing director Darren Gordon.

"With a maiden Resource containing more than 500,000 tonnes of nickel, this is already one of the largest near-surface undeveloped nickel sulphide projects in the world and, as a maiden JORC Resource number, we believe it is up there with some of the best initial JORC Resources ever published by an ASX-listed junior," Mr Gordon added.

Centaurus pointed out that Jaguar is unique in the nickel-sulphide space as the high-grade mineralisation comes almost to surface and continues at depth. Around 80% of the nickel metal in the maiden MRE sits less than 200 metres from the surface, which the company believes demonstrates the strong open pitiable potential of the project.

What now?

The maiden JORC MRE for the Jaguar Project covers the six Jaguar deposits and two Onça deposits. Since drilling commenced in November 2019, the company has drilled and successfully intersected high-grade nickel sulphides at three of the Jaguar deposits (south, central and north), as well as both Onça deposits.

Centaurus is yet to commence drilling at the Jaguar West or Jaguar North-East deposits, however, drilling is planned in the second half of 2020.

Additionally, the company will undertake step-out drilling at Jaguar in the second half of 2020 to test deeper high-grade underground targets and strike extensions of the known deposits.

In-fill drilling is already in progress, with two diamond rigs operating on day-shift only and a third rig on standby. The company plans to ramp-up back to three rigs on double-shift and mobilise a reverse circulation rig in the third quarter of 2020. This is part of its strategy to unlock the full potential of the Jaguar Project as quickly as possible.

"This multi-pronged approach should ensure that we can continue to grow the resource as we advance this exceptional project towards development," Mr Gordon said.

Closing out his comments, Mr Gordon stated: "We also expect to complete a Scoping Study and deliver a further Resource upgrade this year, providing shareholders with strong news flow over the coming months."

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