- Shares of South32 surged over 11% on a plan to acquire a stake in the Chilean copper project.
- Redbubble shares plunged over 16% on disappointing September quarter earnings.
- CSL shares surged on confirmation to manufacture AstraZeneca COVID-19 vaccine in Australia.
- Shares of Rio Tinto gained over 2% on a plan to produce low-carbon steel.
- Collins Foodshare price rose over 2% on acquiring 9 KFC restaurants in the Netherlands.
Australian shares saw broad-based buying on Wednesday with nine of the 11 sectoral indices trading in positive terrain. Benchmark index, the ASX 200, was up over 1% by the time of reporting, led by tech and mining stocks. Diversified financials group Netwealth (ASX:NWL), infant formula player A2 Milk Company (ASX: A2M), and mining business Perseus Mining (ASX:PRU), topped the gainers’ chart.
Individual stocks that created a buzz on the ASX today included – South32, CSL, Redbubble, Rio Tinto and Collins Food.
Here’s how these shares performed on the ASX today:
South32 to acquire stake in Chilean copper project
Shares of South32 (ASX: S32) rallied over 11% after the metal and mining company unveiled a plan to buy a stake in a large Chilean copper project located near BHP’s project. The share price gained as much as 11.5% to AU$4.07 after it announced to acquire a 45% interest in the Sierra Gorda copper mine in Chile (Sierra Gorda).
The deal is valued at around US$2.05 billion (AU$2.8 billion), which includes a combination of cash on hand and an underwritten US$1-billion acquisition debt facility. As per the deal, the transaction involves an upfront cash payment of US$1.55 billion.
Commenting on the development, South32’s Chief Executive Officer Graham Kerr said, "We are actively reshaping our portfolio for a low-carbon world and the acquisition of an interest in Sierra Gorda will increase our exposure to the commodities important to that transition. Copper is a critical metal in the decarbonisation of the world's energy networks and has strong long-term market fundamentals.”
“Adding Sierra Gorda further improves our portfolio and is expected to immediately lift Group margins and earnings, supporting future shareholder returns while retaining strength and flexibility in our Balance sheet,” Kerr added.
Redbubble’s Q1 gross profit dips 34%, revenue falls 28%
Shares of global online marketplace Redbubble (ASX: RBL) tumbled 16.2% to hit an intraday low of AU$3.82 after it reported disappointing earnings in the September quarter.
The gross profit dropped 34% to AU$42 million, while the revenue fell 28% to AU$106 million. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) plunged 85% to AU$3.9 million. The company had a cash balance of AU$109 million as on 30 September 2021.
CSL confirms to make AstraZeneca COVID-19 vaccine
Shares of biotechnology giant CSL (ASX: CSL) climbed as much as 1.9% to AU$299.63 after it confirmed that it would continue making the AstraZeneca COVID-19 vaccine in Melbourne until early next year.
The healthcare firm said in an exchange filing that it had redeployed dedicated COVID-19 vaccine teams to manufacture AstraZeneca’s COVID-19 vaccine for local use. The company further stated that it had entered into a contract with the Australian government to deliver 50 million doses of the vaccine by early 2022.
Rio Tinto plans to produce low-carbon steel
Shares of mining giant Rio Tinto (ASX: RIO) climbed 2.24% to AU$101.6 amid a report that it was working on technology to use biomass as a substitute for coal in the steel-making process.
The development came in the backdrop of rising pressure for Australia’s largest miners to cut industry carbon emissions.
The miner has developed a technology that involves the use of "sustainable" biomass to convert iron ore into metallic iron during the steelmaking process.
Collins Food acquires 9 KFC restaurants in the Netherlands
Shares of Collins Food (ASX: CKF) gained as much as 2.16% to AU$13.66 during the day’s trade on plans to expand its business in the Netherlands. The KFC and Taco Bell operator has inked a deal to acquire nine KFC restaurants in the region.
The development came a week after the company inked a pact with KFC owner Yum! Brands to launch 130 new KFC restaurants in the Netherlands over the next 10 years. The company operates its business in the Netherlands through its wholly owned Dutch subsidiaries, Collins Foods Netherlands Operations B.V.
Following completion of the deal, the Collins Foods KFC network in the Netherlands will expand to 44 restaurants, covering 55% of the total market.