Why the Boart Longyear (ASX:BLY) share price is rocketing 50% today

The Boart Longyear (ASX: BLY) share price has been one of the best performers on the ASX today, rising by more than 50%. Here’s why.
The post Why the Boart Longyear (ASX:BLY) share price is rocketing 50% today appeared first on The Motley Fool Australia. –

rising asx bank share prices represented by bankers partying in board room

The Boart Longyear Ltd (ASX: BLY) share price has been the top percentage riser on the ASX so far today. This comes after the company announced it has engaged the services of a world-renowned advisor to provide it with strategic recommendations.

At the time of writing, the Boart Longyear share price is racing 52.94% higher to $1.04. This is just below its intraday high of $1.05 that was achieved mid-morning.

What did the company announce?

The Boart Longyear share price is gaining significant interest today with investors scrambling to get in on the action.

Prior to the market’s open this morning, Boart Longyear advised it has engaged multinational investment bank and financial services firm Rothschild & Co to assist with the company’s strategic direction.

The decision to seek advisory support from Rothschild comes as Boart Longyear is looking to tackle its debt obligations. Net debt recorded at the end of the September period stood at $823 million, increasing $67 million from financing costs.

The company’s current debt facilities are expected to mature during the second-half of 2022. Management said that possible options to service the growing debt profile could include refinance or recapitalisation.

CEO commentary

Boart Longyear CEO Mr Jeff Olsen commented on the company’s position, saying:

It is important for the company to start exploring all available options to address its future debt maturities and set us up to take advantage of future growth opportunities. There are clear signs that the mining and metals market is seeing increased activity as demonstrated through recent investments in our sector with major mining houses signalling increased exploration spend.

We are also seeing intermediate and junior miners accessing capital through significant equity raisings allowing them to get out and explore for tomorrow’s resources.

Boart Longyear share price snapshot

Despite today’s meteoric rise, over the past 12 months, the Boart Longyear share price has dropped nearly 40%.

Reaching a 52-week high of $1.75 last January, Boart Longyear shares took a dive following the onset of the pandemic. Furthermore, throughout the second half of 2020, and prior to today’s rise, the company’s shares had barely managed any significant recovery. It’s also worth noting that the Boart Longyear share price hit an all-time low of 29.5 cents just last month.

Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Aaron Teboneras 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.

The post Why the Boart Longyear (ASX:BLY) share price is rocketing 50% today appeared first on The Motley Fool Australia.

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!