Stocks of the Hour: Bega Cheese, Syrah Resources, Evolution Mining

Company News

by Melissa Darmawan

Thanks for tuning in. Here are the headlines we are following.

Bega Cheese’s (ASX:BGA) trading update has melted away investors’ expectations. The cheese manufacturer said that short term impacts from the pandemic amid a highly competitive milk-buying landscape are expected to impact financial year 2022 earnings. The company is forecasting normalised EBITDA in the range of $195 million to $215 million versus $142 million in the previous financial year. Shares have dived to a four month low, trading 6.7 per cent lower at $5.25.

Meanwhile, after we heard of news that CEO Elon Musk sold 10 per cent of his stake in Tesla, Aussie-listed Syrah Resources (ASX:SYR) has executed an offtake deal with Tesla to supply an ingredient that makes up the EV battery called natural graphite anode. The ingredient will come from its production facility in Vidalia, USA. Shares are powering up, 31.7 per cent higher at $1.75.

Elsewhere Evolution Mining (ASX:EVN) has pulled out from its gold-focused joint venture with Enterprise Metals after results from 30 months of exploration "were not sufficient" to continue. The four-year deal started in June 2019 and earmarked Evolution to earn an 80 per cent interest in the project by spending $6 million on exploration. Shares are trading 4.7 per cent higher at $4.17.

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