The Calix (ASX:CXL) share price is rising 5% today. Here’s why

A government grant of near $40 million is piquing the interest of investors.
The post The Calix (ASX:CXL) share price is rising 5% today. Here’s why appeared first on The Motley Fool Australia. –

The Calix Ltd (ASX: CXL) share price is gaining today. At the time of writing, shares in the technology company are trading for $2.69 – up 4.67%.

The positive price movement comes after Calix announced a project it’s involved in will receive nearly $40 million in government funding.

Let’s take a closer look.

Calix share price boosts on government funding

In a statement to the ASX, Calix says it will receive a share of $39 million in government funds for its role in “a low carbon research project.”

Calix is a key partner in the Heavy Industry Low-carbon Transition Cooperative Research Centre (HILT CRC). The Centre aims to reduce carbon emissions in Australia’s heavy industries.

The government funding will boost the research group’s coffers to more than $210 million in cash and in-kind contributions over the next 10 years.

Calix says it will continue to produce technologies to bring down emissions in cement and bauxite production as part of its work with the group.

Industrial partners in the project include Boral Limited (ASX: BLD), Fortescue Metals Group Limited (ASX: FMG) and South32 Ltd (ASX: S32).

The big cash boost seems to be interesting investors, thus, lifting the Calix share price.

Management commentary

Calix Managing Director Phil Hodgson said:

We are excited to be a key partner in the HILT CRC and welcome today’s funding from the Australian government. It will provide opportunities for Calix to grow our expertise and network with some of Australia’s largest heavy industrial and mining companies, while helping to develop CO2 hubs, fast track projects and Australia’s long-term capability for low-carbon projects.

More specifically, it is a chance for us to demonstrate the technology developed for CO2 mitigation in the production of cement and lime through our European LEILAC-1 and 2 projects in an Australian setting, as well as explore other more sustainable applications for our technology in heavy industry, backed by this impressive team of researchers and industrial participants.

Calix share price snapshot

During the past 12 months, the Calix share price has increased by more than 250%. In fact, in just the last 6 months, shares in the company have increased in value by 149%.

Calix has a market capitalisation of $425 million.

The post The Calix (ASX:CXL) share price is rising 5% today. Here’s why appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

ASX 200 up 0.5%: Telstra asset sale, AGL demerger, Nuix crashes again

4 fast-growing ASX small cap shares that you may have overlooked

Here are 3 ASX 200 shares making market moves today

Why this expert thinks commodities are about to rally again

ASX construction shares like Brickworks (ASX:BKW) are falling today

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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!