Insights

Why the Laneway Resources (ASX:LNY) share price popped 14% higher today

While the All Ords slid lower today, Laneway Resources’ share price went the other way, gaining 14%. Here’s why…
The post Why the Laneway Resources (ASX:LNY) share price popped 14% higher today appeared first on Motley Fool Australia. –

treasure chest full of gold

The Laneway Resources Ltd (ASX: LNY) share closed up 14% today. This comes following the company’s announcement on the completion of its first blast at the high grade Sherwood deposit  at its 100% owned Agate Creek gold mine in North Queensland.

The emerging miner, with a market cap of $30 million, is no stranger to wild share price swings. Despite today’s 14.3% gains, the share price is down 20% year-to-date. Over that same time the All Ordinaries Index (ASX: XAO) is down 6%.

What does Laneway Resources do?

Laneway Resources is an emerging Australian resource development and mining company. Most of its projects are gold-focused in Queensland and New Zealand. The company also has a coking coal resource project in New South Wales.

Why did the Laneway Resources share price soar?

Laneway revealed that the first blast, completed yesterday at Agate Creek, exposed the first ore as mining starts. It expects approximately 9,000 ounces of gold will be mined in 2 stages the Sherwood Open Pit in the current campaign.

The company plans to mine 43,000 tonnes @ 6.5g/t from Sherwood and that the initial 18,000 will be processed this quarter at the Lorena Gold Mine CIL processing plant. That will occur at a fixed price over 3 weeks starting around mid-November. It forecasts gold recoveries will be approximately 90%.

Laneway expects to stockpile the remaining 25,000 tonnes for transporting and processing after the wet season. It also expects to see significant positive near-term cash flow and to receive the majority of the payment for the gold it produces in the first stage before the end of the year.

Commenting on the results, Laneway chair Stephen Bizzell said:

Commencement of mining activities at Sherwood on time is a great outcome for Laneway shareholders and we will be processing ore very soon through Lorena’s mill.

This means that significant revenue will be flowing to the company. The processing deal we have struck with Lorena enables payment by year end for the majority of the gold produced during this campaign.

This sets the company up well for a busy 2021 as we focus in parallel on the planning, approvals and development of the larger volume of high grade ore encompassed by the larger Whittle pit shell and then turn our attention to options for onsite processing of the almost half a million ounces identified at Agate Creek.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks 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.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Laneway Resources (ASX:LNY) share price popped 14% higher today appeared first on 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!