Day: November 8, 2021

Here’s how the Medibank (ASX:MPL) share price has performed against the ASX200 in the last 3 months

a man in a hospital bed on a drip gives a thumbs up sign while reclining with a bedside table containing a plant and fruit in the background.

How has the Medibank Private Ltd (ASX: MPL) share price performed against the S&P/ASX 200 Index (ASX: XJO) in the last 3 months? Good question!

The Medibank share price certainly didn’t have a pleasant start to the week today. It’s closed at $3.43 a share, down 1.3% for the day.

But how has it fared over the past 3 months? Well, back on 9 August, Medibank shares closed at a price of $3.41 each. That means Medibank shares have gone almost nowhere over the past 3 months (well, a gain of 0.59%) going off those bookend dates.

But that’s not to say the share price did nothing that whole time. In fact, on 7 September, the company hit a new 52-week high of $3.62 a share. By the back end of October, this private health insurance giant descended as low as $3.32 a share. That’s a difference of around 8.3%.

You can see this visually represented in the graph below:

Medibank share price
Medibank Private 3-month share price graph & data | Source: fool.com.au

But, as it turns out, this particular 3 month period has resulted in the Medibank share price going nowhere. That’s just how these things work sometimes. So how did the ASX 200 perform by comparison?

Well, the ASX 200 closed at 7,538.4 points back on 9 August. Today, it finished up at 7,452.2 points, a drop of 1.14% over the same period. Suddenly, Medibank’s anaemic performance over this period doesn’t look quite so bad, seeing it was still a market-beating investment.

Saying that, there was another silver lining for Medibank shareholders during this period. On 30 September, Medibank paid out its final dividend for FY21, a 6.9 cents per share payment, fully franked. This dividend in itself is worth a yield of roughly 2% on today’s pricing, so shareholders had that to bank over the past 3 months as well.

Medibank Private share price snapshot

Whilst Medibank has had a rather uninspiring 3 months, its longer-term performance is far more robust. Year to date, Medibank shares are up a healthy 13.95%, outperforming the ASX 200’s 11.49% performance over the same period. Over the past 12 months, Medibank shares are also up by 26.1%, again beating the ASX 200’s 20%.

At Medibank Private’s closing price of $3.43 today, this ASX 200 company has a market capitalisation of $9.45 billion, with a trailing annual dividend yield of 3.7%.

The post Here’s how the Medibank (ASX:MPL) share price has performed against the ASX200 in the last 3 months appeared first on The Motley Fool Australia.

Should you invest $1,000 in Medibank Private right now?

Before you consider Medibank Private, 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 Medibank Private 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 Sebastian Bowen 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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Is the Rio Tinto (ASX:RIO) share price a buy for its 21% dividend yield?

Pile of various smooth rock minerals

The Rio Tinto Limited (ASX: RIO) share price could be a consideration for its projected grossed-up dividend yield of 21%.

That dividend projection is from the broker Credit Suisse, which thinks that Rio Tinto is going pay a large dividend for the miner’s 2021 financial year. Rio’s FY21 follows the 2021 calendar year, so this current financial year will show the benefit of the strong iron ore prices a few months ago.

The broker thinks that investors will continue to be interested in Rio Tinto because of its ongoing good payments to shareholders.

Less rosy picture for FY22

Each analyst has their own expectations for what Rio Tinto’s FY22 will look like.

Credit Suisse is expecting the Rio Tinto dividend yield to fall to 10.9% in FY22 as profit returns to a lower level.

The broker puts the current Rio Tinto share price at 8x FY22’s estimated earnings.

Rio Tinto’s falling share price

Over the last six months, Rio Tinto shares are down by around 33%. In the last month alone it has dropped around 13%.

Under a month ago, the business released its third quarter production results. Despite the challenges of COVID-19, Rio Tinto noted that its iron ore shipments of 83.4mt were 2% higher year on year and 9% higher than the second quarter of 2021.

Within that update, Rio Tinto said that it’s expecting Pilbara shipments to be between 320mt to 325mt, down from the previous guidance of being at the low end of 325mt to 340mt. This was due to “modest delays” to completing the new greenfield mine at Gudai-Darri and the Robe Valley brownfield mine replacement project due to the tight labour market in Western Australia.

However, production of bauxite, aluminium, copper and titanium dioxide slag were all lower than the third quarter of 2020.

Rio Tinto has also entered into three partnerships to progress its work to decarbonise its value chain, such as zero-emission mining haulage solutions.

Lithium project

In July 2021, Rio Tinto announced that it had committed $2.4 billion to the Jadar lithium-borates project in Serbia, one of the world’s largest greenfield lithium projects. If approved, this project could have a growing influence on the Rio Tinto share price in the coming years.

It still remains subject to receiving all relevant approvals, permits and ongoing engagement with local communities and the Government of Serbia.

Rio Tinto is looking to increase its exposure to battery materials that are used in large scale batteries for electronic vehicles and storing renewable energy. This would position Rio Tinto as the largest source of lithium supply in Europe for at least the next 15 years. Rio Tinto also said Jadar will produce borates, which are used in solar panels and wind turbines.

First saleable production is expected in 2026, at a time of “strong market fundamentals” with lithium demand forecast to grow by 25% to 35% per annum over the next decade. At full production in 2029, the mine is expected to produce around 58,000 tonnes of lithium carbonate annually.

Rio Tinto share price target

Credit Suisse has put a price target of $106 on Credit Suisse, which is a potential upside of around 20% over the next 12 months, if the broker is right.

The post Is the Rio Tinto (ASX:RIO) share price a buy for its 21% dividend yield? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Rio Tinto right now?

Before you consider Rio Tinto, 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 Rio Tinto 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

Motley Fool contributor Tristan Harrison 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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Here’s why the Bellevue Gold (ASX:BGL) share price surged 10% today

rising gold share price represented by a green arrow on piles of gold block

Shares in ASX gold explorer Bellevue Gold Ltd (ASX: BGL) finished the day on top, climbing 10.6% into the green to close at 94 cents.

Bellevue Gold shares made the leap forward despite no market-sensitive information out of the company’s camp today.

In light of this, why don’t we take a look at what was driving the gains in Bellevue’s share price on Monday.

What’s up with Bellevue Gold shares today?

Whilst there was nothing remarkable from Bellevue’s corner, S&P/ASX All Ordinaries Gold Index (XGD) also posted a solid 2.4% gain today, highlighting strengths across the broad sector.

In fact, the price of the yellow metal has made a sharp upward turn over the past week, bouncing off a low of US$1,736/t.oz on 3 November.

It now trades at US$1,819.94//t.oz at the time of writing, a gain of almost 5% in just a matter of days. As such, the precious metal now commands its highest premium in 3 months.

Strengths in the price of gold bode in well for the Bellevue Gold price. Why is this so you may ask?

It boils down to the fact that Bellevue Gold is an ASX resource share that has direct exposure to gold as an explorer and producer.

As a result, it is considered a price taker on whatever the going spot rate is in the gold markets. Consequently, Bellevue’s share price can and does fluctuate with any volatility in the price of gold.

One unique factor about gold as an investment is that it can be bought 24 hours a day, even if certain markets do close depending on times.

This means the impulse from a jump in the price of gold may not be felt by ASX gold players until the following day.

From 5 November until the end of play today, gold has made another upward move, gaining a further US$27 per troy ounce in that time.

With this in mind, and considering the tight cause-effect relationship between the company’s share price and the volatility of the underlying metal, it starts to make sense of what could be driving Bellevue’s shareholder’s gains today.

This, and the fact that investors appear to be piling into ASX gold shares over the past month, as indicated by strengths in the broad index.

Bellevue Gold share price snapshot

It’s been a difficult 12 months for Bellevue Gold and its share price, having lost 31% in that time after falling a further 16% this year to date.

Each of these results has lagged the S&P/ASX 200 index (ASX: XJO)’s climb of around 20% in that time.

The post Here’s why the Bellevue Gold (ASX:BGL) share price surged 10% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Bellevue Gold right now?

Before you consider Bellevue Gold, 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 Bellevue Gold 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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Why the Incitec Pivot (ASX:IPL) share price slipped on Monday?

a farmer kneels on one leg and closely examines soil from his farm against a blue sky backdrop.

Shares in industrial supplies and chemicals company Incitec Pivot Ltd (ASX: IPL) lost ground today, finishing the session 0.63% lower at $3.13.

At one point, investors were selling the company’s shares in droves, resulting in an intraday low of $3, roughly 5% in the red from the open.

Incitec Pivot shares edged down today following a company announcement on the company’s Gibson Island operations in Brisbane.

The company will cease operations at its Gibson Island fertiliser plant due to limitations in securing an economically viable gas supply to the site.

Here are the details.

What did Incitec Pivot announce?

The company’s announcement notes that, despite its ongoing efforts, Incitec Pivot has been unsuccessful in securing a long-term gas supply to the site.

As a result, the company is closing down operations from December 2022 when its current natural gas feedstock supply arrangements expire.

The decision to close the plant was no doubt a tough one. It comes after more than 50 years of operation and will have a direct impact on up to 170 employees.

Importantly, Incitec Pivot’s Brisbane fertiliser distributor centre is set to continue despite the closure of its manufacturing plant.

Estimated one-off costs for the plant’s closure include an $83.5 million cash charge to close the facility and a $102.5 million non-cash asset write-down.

There is also a potential land sale of up to $45 million. However, this depends on the final investment decision from the company as it may not intend to actually sell the facility.

Instead, the company has commissioned a feasibility study into the production of industrial-scale green ammonia to repurpose the plant.

Incitec Pivot states it is committed to being “the leading supplier of quality fertilisers and soil health services to the agricultural sector”. According to the company, a move to green ammonia would create new opportunities moving forward.

What impact will this have?

The company expects the plant’s closure will have a meaningful impact on its earnings from January 2023. Most obviously, there will no income from the Gibson Island segment.

However, subsidiary Dyno Nobel Asia Pacific is now expected to source 20,000 tonnes of ammonia per annum from other suppliers. This is expected to lead to a $5 million to $10 million per annum impairment for Incitec.

There is also ‘stranded corporate and insurance costs’ of approximately $10 million per annum embedded into Incitec Pivot’s decision to close the plant.

Speaking on the impacts, Incitec Pivot’s CEO Jeanne Johns said:

It is disappointing for our people and Australian manufacturing that we could not reach a suitable commercial gas supply agreement to continue the operation of the Gibson Island facility from processing natural gas, however we look to create new opportunities aligned to the Company’s forward strategy.

Incitec Pivot share price snapshot

Over the past 12 months, Incitec Pivot shares have climbed more than 50% after rallying 37% this year to date.

Nonetheless, it has outpaced the benchmark S&P/ASX 200 Index (ASX: XJO)’s return of around 20% in the last year.

The post Why the Incitec Pivot (ASX:IPL) share price slipped on Monday? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Incitec Pivot right now?

Before you consider Incitec Pivot, 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 Incitec Pivot 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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