Day: May 5, 2022

3 ASX 200 mining shares that surged more than 5% today

Three satisfied Whitehaven coal miners with their arms crossed looking at the camera proudlyThree satisfied Whitehaven coal miners with their arms crossed looking at the camera proudly

The S&P/ASX 200 Resources Index (ASX: XJR) finished in the green today, but three ASX 200 mining shares soared higher than the index.

The ASX 200 Resources Index climbed 1.49% to 5,796.2 points. For comparison, the S&P/ASX 200 Index (ASX: XJO) also jumped 0.82% today.

Let’s take a look at which ASX 200 mining shares had a stellar day.

Pilbara Minerals (ASX: PLS)

The Pilbara Minerals share price surged 7.6% today. The company is one of many ASX lithium shares to enjoy a day in the green.

As my Foolish colleague James reported, this market sentiment appeared to be driven by a strong result from lithium giant Livent Corp (NSYE: LTHM) in the United States. Livent shares exploded 30% after the company performed ahead of market expectations. CEO Paul Graves spoke highly of the global lithium market. He commented: “Strong lithium demand has continued in 2022.”

Pilbara’s share price has surged 141% in a year but is down 11.5% this year to date. The company recently reported lithium prices jumped to record highs in the quarter ended March.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price rocketed 8.75% today. The company’s share price has risen 121% year to date and 392% over the past 12 months.

Core Lithium shares leapt today amid a strong day for ASX lithium shares. Other ASX lithium shares to rise include Allkem Ltd (ASX: AKE), up 4.79%,  Lake Resources N.L. (ASX: LKE), up 5.69%, and Liontown Resources Limited (ASX: LTR), up 7.72%.

Core Lithium has recently received environmental approval for the BP33 underground mine in the Northern Territory.

Chalice Mining Ltd (ASX: CHN)

Chalice Mining shares leapt 5.43% today. Chalice is exploring the Jumilar nickel, copper, and platinum group elements (PGE) project in the Avon region of Western Australia.

Copper prices are up 1.76% to US$4.4045 a pound, Trading Economics data shows. However, nickel prices have fallen 1.18%.

Chalice presented at the Macquarie 2022 Australia conference on Wednesday. The company noted Jumilar has the potential to be a “globally significant” source of class 1 nickel. Chalice said: “Julimar’s proximity to WA’s world-class power grid and infrastructure make it uniquely positioned to deliver low carbon intensity metals.”

The Chalice Mining share price has gained 5% over the past 12 months but is down 25% so far this year.

The post 3 ASX 200 mining shares that surged more than 5% today appeared first on The Motley Fool Australia.

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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 January 12th 2022

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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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Why these brokers think ARB shares are still a buy after their big crash

Friends in a 4WD.Friends in a 4WD.

The ARB Corporation Limited (ASX: ARB) share price tumbled again today but some experts reckon this is a buying opportunity.

Shares in the four-wheel-drive accessories maker lost a further 1.13% today as they crashed to a more than one-year low of $33.23.

Today’s losses are on top of the 11.2% fall yesterday after the company’s disappointing trading update. It also follows smaller falls on Monday and Tuesday, meaning the ARB share price has slumped 17% since Friday’s close.

ARB hits earnings speed bump

The update showed slowing sales momentum in the quarter ended March across all segments when compared to the first half of 2022.

Importantly, a further slowdown is likely at the group level in the current quarter based on management’s FY22 guidance, according to Citigroup.

However, the broker isn’t put off and has reiterated its “buy” recommendation on the ARB share price.

“While slowing sales momentum is not positive for a stock which trades at an above-market multiple, we see attribute the slowdown to supply issues which should resolve in time and see demand holding up for now,” said Citi.

But this doesn’t mean it’s a smooth road ahead for ARB either. Supply chain disruptions continue to impact new car sales, labour shortages to install ARB accessories are still an issue, and rising interest rates could dent consumer demand.

However, Citi thinks the ARB share price still looks cheap. Management’s decision to double the capacity of its Thai manufacturing plant and its partnership with Ford give the broker reasons to feel confident about ARB’s future.

Nonetheless, Citi lowered its 12-month target price to $46.63 from $48.15 a share.

ARB share price can overcome temporary obstacles

Another broker that believes the ARB share price is looking cheap is Wilsons. It repeated its “overweight” recommendation on the shares with a 12-month price target of $43 a share. That implies a more than 30% upside if dividends are included.

“Demand remains strong, underpinned by a ‘consistently high’ order book and, in our view, the ongoing structural shift to 4X4s/SUVs,” said Wilsons.

 “Once supply constraints ease and supply chains improve, we expect structural sales growth to resume and note the incremental distribution capability available through ARB’s global collaboration with Ford.

“Recent price increases and favourable currency movements should support elevated margins in the near-term.”

The ARB share price has reversed over 11% in the past year compared to a 4% increase in the S&P/ASX 200 Index (ASX: XJO).

The post Why these brokers think ARB shares are still a buy after their big crash appeared first on The Motley Fool Australia.

Should you invest $1,000 in ARB right now?

Before you consider ARB, 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 ARB wasn’t one of them.

The online investing service he’s run for over 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 January 13th 2022

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Motley Fool contributor Brendon Lau 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 recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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3 ASX 300 shares rocking new 52-week highs on Thursday

A young kid with dark glasses rocks out with a guitar.A young kid with dark glasses rocks out with a guitar.

The S&P/ASX 300 Index (ASX: XKO) may have enjoyed a day in the green, but three ASX 300 shares outperformed the index while recording multi-year highs.

The ASX 300 ended the day up 0.87% at 7,361.9 points. It was a similar story for the S&P/ASX 200 Index (ASX: XJO), which closed 0.82% higher at 7,364.7 points.

So which ASX 300 shares leapt to yearly highs today?

Coronado Global Resources Inc (ASX: CRN)

The Coronado Global Resources share price climbed 3.36% today to close at $2.46. However, in afternoon trade, it hit $2.48. This is the highest price for Coronado shares since August 2019.

A possible catalyst could be the price of coal, which soared 9% to US$355 per tonne in one day, Trading Economics data reveals. Coronado produces metallurgical coal from projects in Queensland and the United States.

Challenger Ltd (ASX: CGF)

The Challenger share price rose 3.09% today to end the day’s trading at $7.68. In afternoon trade, the investment management company’s share price reached $7.725. That is the highest this ASX 300 share has been since early March 2020.

Challenger managing director and CEO Nick Hamilton presented at the Macquarie Australia conference in Sydney today. Hamilton reflected on the success of the company’s diversification strategy. He said this strategy is driving significant momentum across the business. He highlighted the company’s Our Life business has achieved a 30% increase in sales to $7.6 billion.

Amcor CDI (ASX: AMC)

The Amcor share price surged 5.68% today to close at $17.69. In earlier trade, the company’s share price leapt 8% to $18.11 — an all-time high.

This ASX 300 share followed in the footsteps of its US listing. The Amcor PLC (NYSE: AMCR) share price surged 9.61% on the New York Stock Exchange on Wednesday.

Investors appeared to be responding positively to the company’s financial results. Net sales for the quarter soared 15.6% to $3,708 million. For the nine months ended March 31, sales surged 13% to $10,635 million. Adjusted earnings before interest and taxes (EBIT) jumped 6% in the quarter compared to the prior corresponding period.

The post 3 ASX 300 shares rocking new 52-week highs on Thursday 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 over ten 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 January 12th 2022

More reading

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 positions in and has recommended Amcor Limited. The Motley Fool Australia has recommended Challenger Limited and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Vulcan share price pops 5% on future lithium expectations

A green fully charged battery symbol surrounded by green charge lights representing the surging Vulcan share price todayA green fully charged battery symbol surrounded by green charge lights representing the surging Vulcan share price today

The Vulcan Energy Resources Ltd (ASX: VUL) share price is benefitting from a surge in positive investor sentiment today.

Upon inspection, the lithium explorer went toe-to-toe with some of the best performers on the ASX on Thursday. The Vulcan share price finished the session up 5.53% at $8.02.

Interestingly, there were no announcements percolating through from Vulcan to the market today. So, what could be grabbing the attention of ASX investors?

Mapping out the future of lithium

Investors know all too well that the future is more important than the past. It is not where the share price currently is that defines our returns, it’s where it will be years from now.

Because of this, estimates and forward projections become the driving force in the short term. As for the Vulcan Energy share price, today came with a set of important forecasts regarding the commodity of focus — lithium.

Recently, analysts at Goldman Sachs pencilled in their projections for lithium prices. They believe lithium carbonate prices will average US$46,640 per tonne this year. However, the analysts project a decline in prices for future years — falling from US$20,500 per tonne in 2023 to US$14,468 per tonne in 2025.

While Vulcan is not yet producing lithium, the value of its future cash flow is reliant on the commodity’s value. Considering this, it might not make sense why the Vulcan share price is in the green today.

One reason might be a renewed focus on potential profitability. Noted by Ben Cleary of Tribeca Global Natural Resources Fund, if lithium prices do retreat, investors still wanting exposure to the sector might congregate around cash-positive companies.

Essentially, the premise of Vulcan Energy’s goal is to produce lithium at a substantially lower cost than is traditional by using its Direct Lithium Extraction method. Although, this is still undergoing assessment.

Vulcan share price snapshot

Vulcan was one of the best performing ASX shares in 2020 and 2021. However, that performance hasn’t been replicated so far this year.

Since hitting an all-time high price of $16.65 in September last year, Vulcan shares have been steadily declining. Looking at the year-to-date performance, the Vulcan share price is down 26%.

The post Vulcan share price pops 5% on future lithium expectations appeared first on The Motley Fool Australia.

Should you invest $1,000 in Vulcan Energy right now?

Before you consider Vulcan Energy, 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 Vulcan Energy wasn’t one of them.

The online investing service he’s run for over 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 January 13th 2022

More reading

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. 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 Scott Phillips.

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