Day: September 16, 2021

Why is the Chalice Mining (CHN) share price plunging on Friday?

A man in a business suit plunges down a big square hole lit up in blue.

The Chalice Mining Ltd (ASX: CHN) share price is plummeting today despite no news having been released by the company.

Though, the company’s share price might be suffering alongside the price of gold.

If that’s the case, Chalice isn’t alone in its struggles today. The ASX gold sector is a sea of red, with the Perseus Mining Limited (ASX: PRU) share price leading the plunge among the large caps, sporting a 6.6% fall.

The Chalice Mining share price is doing slightly better, having fallen 4.71% to trade at $7.48.

While Chalice Mining isn’t a pure-play gold producer, it currently holds a number of gold projects. However, it’s planning to spin off its Australian gold assets before the end of the year.

Let’s take a closer look at what could be weighing on the company’s share price today.

What’s weighing on Chalice’s stock?

The Chalice Mining share price is sliding today despite the company maintaining its silence. The company’s share price is seemingly being dragged down alongside the price of gold.

Over the last 24 hours, the price of gold has plunged from around US$1,795 an ounce to US$1,758.95 per ounce.

According to precious metal specialist and retailer Kitco, gold is struggling due to the United States’ retail sector gaining strength. The sector’s recovery could forebode a hawkish US Federal Reserve ahead of its upcoming interest rate announcement.

Though, Chalice’s struggles today could have more to do with market movements than the gold price’s dip.

Yesterday, the company was one of the S&P/ASX 300 Index‘s (ASX: XKO) best performers. The Chalice share price gained 6.3% yesterday for no obvious reason.

Today’s drop could be a correction following yesterday’s surge.

Chalice Mining share price snapshot

Despite today’s dip, the Chalice Mining share price has been performing well lately.

It has gained 74% since the start of 2021. It is also 377% higher than it was this time last year.

The post Why is the Chalice Mining (CHN) share price plunging on Friday? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Chalice Mining right now?

Before you consider Chalice Mining, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Chalice Mining wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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Motley Fool contributor Brooke Cooper 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.

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Why ASX 200 gold shares are sinking on Friday

plummeting gold share price

The S&P/ASX 200 Index (ASX: XJO) is falling lower towards the end of the week and ASX 200 gold shares are among the losers. Shares in some of Australia’s largest gold miners are sharply down amid falling commodity prices.

Why ASX 200 gold shares are sinking on Friday

Gold prices fell to a one-month low overnight, falling below US$1,800 per ounce. It came as demand for the US dollar rebounds with investors expecting a US Federal Reserve tapering program and rising US Treasuries yields.

That has been reflected in ASX 200 gold shares on Friday. The Newcrest Mining Ltd (ASX: NCM) share price has fallen 2.9% at the time of writing to $23.83 per share. Shares in the Aussie gold and copper miner are now trading 3.3% above their 52-week low of $23.08 per share.

Newcrest is far from the only gold producer under pressure in the final trading session of the week. The Northern Star Resources Ltd (ASX: NST) share price has slumped 3.9% to $9.17 per share on Friday. Northern Star shares are now down 31.1% since the start of the year.

Evolution Mining Ltd (ASX: EVN) hasn’t been able to escape the losses either. The ASX 200 gold share is down 3.1% at the time of writing to $3.80 per share. That has seen Evolution’s market capitalisation edge below $7 billion on Friday afternoon.

On the smaller end, Chalice Mining Ltd (ASX: CHN) shares have been hit hard. The Chalice share price is down 4.6% on Friday afternoon but remains up an impressive 377% in the past 12 months.

Foolish takeaway

A number of ASX 200 gold shares are under pressure on Friday. It looks as though tumbling gold prices amid stronger US dollar demand has hurt the commodity-based shares heading into the weekend.

The post Why ASX 200 gold shares are sinking on Friday appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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.

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Why Fortescue, IRESS, Newcrest, & Syrah shares are tumbling lower

share price dropping

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week in the red. At the time of writing, the benchmark index is down 0.7% to 7,405.6 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling lower:

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price has fallen 11% to $15.33. This has been driven by a pull back in the iron ore price overnight and a broker note out of UBS this morning. In respect to the latter, the broker has downgraded the iron ore producer’s shares to a sell rating and cut the price target on them from $18.00 to $15.00. UBS made the move on the belief that iron ore prices will fall to US$70 to US$80 a tonne.

IRESS Ltd (ASX: IRE)

The IRESS share price is down almost 10% to $12.22. Investors have been selling the financial technology company’s shares after takeover talks with EQT collapsed. IRESS advised that discussions between it and EQT have now concluded and the parties have been unable to agree a transaction. Last month EQT tabled a non-binding offer to acquire the company for $15.91 cash per share.

Newcrest Mining Ltd (ASX: NCM)

The Newcrest share price is 3% lower at $23.86. Investors have been selling gold miners today after the price of the precious metal dropped to a one-month low. According to CNBC, the spot gold price is down 2.3% to US$1,754.10 an ounce. This was driven by better than expected economic data in the US.

Syrah Resources Ltd (ASX: SYR)

The Syrah share price is down 4% to $1.21. This follows news that the graphite producer has been struggling to ship its product from the Balama Graphite Operation in Mozambique due to container ship shortages. Approximately 12kt of natural graphite sales from Balama were planned to ship from the Port of Nacala in late September. However, container shipping market disruption means that this has been delayed to October.

The post Why Fortescue, IRESS, Newcrest, & Syrah shares are tumbling lower 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 August 16th 2021

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Motley Fool contributor James Mickleboro 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.

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Why the Whitehaven Coal (ASX:WHC) share price is tumbling 8% today

Older mine worker in hard hat looks upset

The Whitehaven Coal Ltd (ASX: WHC) share price is sinking in afternoon trade today. This comes as the coal miner faces backlash over its Vickery coal project extension that was approved yesterday.

Whitehaven shares are currently changing hands at $2.83 apiece, an 8.71% drop from the market open.

This is a complex issue with a lot of moving parts – but we’ve done the analysis for you. Here are the details.

Let’s set the scene quickly

In order to grasp the situation fully, it’s important to realise the backdrop here.

The Vickery colliery, located around 20km north of Gunnedah in NSW, was originally owned by Rio Tinto Limited (ASX: RIO) before its closure in 1998. Whitehaven then acquired the mine and was granted a restart approval in 2020.

It has since been a messy road for the project’s upstart, as several climate activist groups have come out against the mine’s go-ahead.

For instance, a group of eight students unsuccessfully sought an injunction against the Vickery extension in May of this year.

However, a Federal Court agreed that the federal environment minister, Sussan Ley, did have a responsibility to ensure no harm was caused to the future of young people as a result of the decision.

The Federal Court ordered the minister to at least factor this into any decision making, before approving the project.

Whitehaven’s Vickery extension project gains approval

Alas, Ley used ministerial powers entrusted by the cabinet and yesterday approved the controversial plans to extend open-cut operations at Vickery. This appears to have had a negative effect on the Whitehaven Coal share price.

The minister has subsequently appealed the Federal Court’s ruling as well.

Ley’s decision is still subject to a series of assessments on environmental conditions, a water management plan, and how the coal giant intends to offset any destruction to the local habitat.

However, in a statement released late Thursday afternoon, Ley indicated that contingencies and restrictions imposed by NSW authorities on the site would mitigate any risk posed to the future of children, or humans in general.

Ley also indicated that if the mine wasn’t approved, a new coal resource, either in Australia or abroad, “will be developed to take its place”. She referenced the work of Professor Will Steffen, of the Australian Department of Climate Change, in her findings.

As such Ley determined there was no harm to humans, now or in the future, that could arise from approving Whitehaven’s $600 million expansion project.

Unsurprisingly, Whitehaven Coal welcomed the decision, which completed an “exhaustive process” that spanned 5 years. The Whitehaven Coal share price also ended Thursday’s session in the green.

Yet, the approval has faced severe backlash, with investors, politicians, and community members alike voicing their distaste for Ley’s decision.

Australian Greens party environment spokesperson Sarah Hanson-Young took to Twitter to say: “Once again, Sussan Ley proves she’s the minister AGAINST the environment, not for.”

“Expanding coal in the middle of the climate crisis is madness,” Hanson-Young added. “Approving a new coal mine just weeks before the world’s climate summit in Glasgow is poor form from Australia.”

Whitehaven Coal share price snapshot

Some investors appear to hold the same sentiment as the Greens. At one stage today the Whitehaven Coal share price sunk as low as $2.77 but is now at $2.83 — down 8.71% on the day.

The miner’s shares are still up more than 70% this year, and 227% over the past 12 months.

The post Why the Whitehaven Coal (ASX:WHC) share price is tumbling 8% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Whitehaven Coal right now?

Before you consider Whitehaven Coal, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Whitehaven Coal wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The author Zach Bristow has no positions 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.

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