Why did these two ASX stocks surge up to 31% on Thursday - Kalkine Media

October 12, 2023 10:30 PM AEDT | By Team Kalkine Media
Follow us on Google News:


  • S&P/ASX 200 closed at 7,091 points, 0.037% higher than the previous day’s close.
  • Redbubble closed 30.43% up, after the company informed that it has returned to positive underlying cash flow in the latest quarter.
  • Lithium Power’s share price zoomed due to rumor of acquisition of the firm by a mining giant.

Australian equity benchmark index, S&P/ASX 200, closed 0.037% up at 7,091 points on 12 October 2023. Seven out of eleven sub-sectors of the ASX ended in the positive territory, while the REIT sector marked the highest gain of 0.89%.

Two ASX stocks that outperformed  the benchmark index on Thursday by wide margins were Redbubble Limited (ASX: RBL) and Lithium Power International Limited (ASX: LPI), which surged 30.43% and 18.57% respectively. Here’s why these two stocks surged today.

Redbubble Limited (ASX: RBL)

Redbubble Limited is a part of Redbubble group, which owns and operates global online marketplaces, TeePublic. Com and Redbubble.com. The company deals in everyday products such as wall art, bags, housewares, stationary, apparel and so on.

Today, RBL’s shares closed 30.434% up at AU$0.600 apiece, as the company shared that it has returned to positive underlying cash flow in the first quarter of FY24.

During the latest quarter, the company reported an underlying cash flow of AU$0.7 million, registering a rise of AU$16.9 million over the previous corresponding year and an increase of AU$5.5 million over the previous quarter.

Gross profit after paid acquisition (GPAPA) zoomed by 14% YoY to AU$26.5 million, driven by multiple recently implemented initiatives, such as the introduction of artist account tiers on its digital marketplaces and dynamic order routing system in the US for Redbubble marketplace.

In the near term, the company expects that trading conditions in key markets will continue to remain soft, especially in the US. During this period, the focus will be on optimising the cost of goods sold, paid marketing activities and promotions to increase GPAPA. 

In FY24, the expected range of GPAPA margin is 23% to 26%, and the anticipated operating expenditure range is AU$92 – 100 million. Moreover, the company is on track to register positive cash flow in FY24, said RBL.

Lithium Power International Limited (ASX: LPI)

Lithium Power is a diversified pure-play lithium firm with projects in three different regions. One project is located in the brine region of South America, while three projects are located in the spodumene hard rock areas of Western Australia. The company’s prime focus is developing Chile’s next lithium mine on the Maricunga Salar.

Today, before entering a trading halt, LPI shares almost touched AU$0.44 apiece, compared to the previous day’s close of AU$0.35 apiece.

The stock price was pushing higher because of rumours of a possible deal between the company and a mining giant, Corporación Nacional del Cobre de Chile (Codelco).

On 28 September 2023, the company confirmed that it was in talks with Codelco concerning a potential transaction; however, the discussion did not reach a conclusion and Codelco was conducting due diligence.

Today, through an ASX filing, the company confirmed the same.

LPI shares are expected to commence normal trading from 16 October 2023 or after releasing an announcement concerning this matter, whichever takes place earlier.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK