Insights

What’s going on with the Hazer (ASX:HZR) share price today?

The hydrogen producer’s shares have fallen on disappointing news…
The post What’s going on with the Hazer (ASX:HZR) share price today? appeared first on The Motley Fool Australia. –

The Hazer Group Ltd (ASX: HZR) share price is in reverse during late morning trade. This comes after the hydrogen producer provided an update on its Commercial Demonstration Project (CDP).

Hazer’s CDP is being constructed at Water Corporation’s Woodman Point Water Recovery Facility in Western Australia. The company aims to convert natural gas and similar methane feedstocks, into hydrogen and high-quality graphite, using iron ore as a process catalyst.

At the time of writing, Hazer shares are down 11.43% to 93 cents. This is a stark contrast from when the company’s share price reached an all-time high of $1.885 in February 2021.

What’s dragging the Hazer share price down?

Investors are heading for the hills, selling Hazer shares following the company’s shock announcement.

In a statement to the ASX, Hazer advised its CDP is experiencing significant cost pressures since its last update in March.

The company stated that during the last quarter, it completed a number of set targets. This included civil site preparation, awarding contracts for the reactor and high-temperature heat-exchanger materials, and taking delivery of the iron-oxide catalyst.

Hazer ensured the materials selection and fabrication specifications of the reactor and equipment met the required safety criteria. It noted that a considerable amount of effort has been dedicated as it progresses the first-of-kind design.

However, the company is facing increased costs due to COVID-19 related disruptions to global supply chains for equipment. Surging freight costs has also restricted the number of suppliers able to meet the technical requirements to supply the project.

Furthermore, Hazer revealed that labour, equipment and services costs in Western Australia are higher than originally indicated. This is due to the strong resource industry with final pricing for many of the packages above the initial project budget.

As a result, the company is now expecting the final project cost to come between $20 million and $22 million. This is a blowout of 17% from its March update, and 29% from the June 2020 Final Investment Decision (FID) project budget.

Fabrication of equipment modules is underway at various supplier sites, with equipment packages to be delivered through the second-half of 2021.

Site installation and construction activities will begin in July and is expected to be completed in the fourth-quarter of 2021.

Management commentary

Hazer Group CEO, Geoff Ward commented:

The Hazer team and our engineering partner Primero Group are continuing to make good progress on the Hazer Commercial Demonstration Project, a complex, first-of-kind technical project.

Scaling up a technology from pilot to demonstration stage is a key step with many engineering, safety and operational complexities that must be thoroughly investigated to ensure the plant achieves its operational goals safely.

… We remain fully funded to complete the Project and focussed on completing construction to achieve our target of commencing commissioning by end December 2021.

The Hazer share price has doubled in value over the past 12 months, and is up over 20% year-to-date.

The post What’s going on with the Hazer (ASX:HZR) share price today? 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

Why Appen, Orocobre, Sandfire, & Whitehaven Coal shares are sinking

Nuix (ASX:NXL) share price wobble after company upheaval
Firefinch (ASX:FFX) share price soars 11% on lithium joint venture
NAB and Zip were among the most traded ASX shares last week

Most Aussies will get a pay raise next month… will you?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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!