Month: May 2022

The embattled Zip Co Ltd (ASX: ZIP) share price is recovering some of its earlier losses as the end of the trading week approaches.

The buy now, pay later (BNPL) giant’s stock traded within half a cent of its 52-week low of $1 this morning.

Fortunately, it’s since bounced back. At the time of writing, the Zip share price is $1.04, 2.35% lower than its previous close.

That’s relatively in line with the broader market’s performance on Friday. The S&P/ASX 200 Index (ASX: XJO) is currently trading 2.39% lower while the All Ordinaries Index (ASX: XAO) has dropped 2.49%.

Let’s take a closer look at what might be impacting the stock on Friday.

Zip share price recovers some of Friday’s losses

The Zip share price is trading higher – though, still in the red – this afternoon after avoiding hitting its 52-week low by a fraction of a cent.

The stock is now trading just 5% lower than it was at the end of last week. The ASX 200 also has dumped around 3% since last Friday’s close.

And while the BNPL stock is certainly in the red, it’s outperforming the tech sector.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) is currently down 4.36%.

While Zip is technically at home on the S&P/ASX 200 Financials Index (ASX: XFJ) – which has fallen 2.09% today – it more often trades in line with the tech sector.

The tech index’s plunge is being led by the Life360 Ltd (ASX: 360) share price’s 10% tumble.

Meanwhile, stock in Block Inc (ASX: SQ2) – the new owner of Zip’s former BNPL peer Afterpay – is one of the sector’s better performers, recording a drop of just 1.8%.

Today’s falls included, the Zip share price is 76% lower than it was at the start of 2022. It has also tumbled 85.5% since this time last year.   

The post Why is the Zip share price making a partial recovery this afternoon? appeared first on The Motley Fool Australia.

More reading

• Why ARB, AVZ, Temple & Webster, and Zip shares are sinking
• The Zip share price is plunging 9% today. Here’s why
• Leading brokers name 3 ASX shares to sell today
• Why Block, Domain, Metcash, and Zip shares are pushing higher
• Back in the green: Zip share price launches 6% on Tuesday

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 positions in and has recommended Block, Inc., Life360, Inc., and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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There are a few ASX All Ordinaries Index (ASX: XAO) shares that have dropped by more than 10% today.

The market is seeing a lot of volatility at the moment. Investors are focused on the high level of inflation and are trying to figure out what this means for interest rates as central banks try to control the situation.

While inflation may affect every business in different ways, investors are sending some business valuations down significantly, like these three:

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is currently down around 10.73%.

This means the ASX All Ordinaries share has fallen more than 60% over the last six months.

It was only a few days ago that Temple & Webster announced that in the second half of FY22, its revenue had grown by 23% between 1 January and 30 April 2022 compared to the same period in 2021. The company said its supply chain and stock position are underpinning growth.

It also announced the launch of its new home improvement website called The Build.

Whispir Ltd (ASX: WSP)

The Whispir share price is currently down by 10.4%.

It has now fallen more than 50% in the last six months.

In this ASX All Ordinaries share’s recent quarterly update for the three months to 31 March 2022, it said its cash receipts rose by 81.6% to $19.8 million. The cash outflows reduced as the company’s cost efficiencies and savings were realised. Free cash outflow for the quarter was $5.6 million, ending with cash on hand of $31.2 million.

It said annualised recurring revenue (ARR) rose by 24.1% to $62.4 million. Whispir also said it signed 82 new customers during the quarter, with the North American market continuing its sales momentum.

The management of the business said it fully expects the sales momentum to continue into the last quarter, which is traditionally the company’s strongest quarter of the year, according to the CEO.

Adore Beauty Group Ltd (ASX: ABY)

The Adore Beauty share price is currently down around 11%.

That means this ASX All Ordinaries share has dropped around 70% in the past six months.

Adore Beauty has continued to see business growth. In the quarter for the three months to 31 March 2022, revenue rose 9% to $42.7 million and active customers went up 7% to 880,000. Returning customers grew by 47%.

In that update, the company said that during the quarter, the mobile app accounted for more than 10% of revenue, with loyalty members accounting for more than 60% of revenue. It noted it’s on track to launch its private-label offering in the fourth quarter of FY22.

The post 3 quality ASX All Ordinaries shares tumbling 10% or more today appeared first on The Motley Fool Australia.

More reading

• Why Macquarie, REA, Temple & Webster, and Xero shares are sinking
• Are you investing with the odds in your favour?
• The Temple & Webster share price is being crushed, down 14%
• 2 ASX growth shares that could be buys in May 2022
• Why ANZ, ARB, Janus Henderson, and Temple & Webster shares are falling

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 positions in and has recommended Temple & Webster Group Ltd and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited, Temple & Webster Group Ltd, and Whispir Ltd. 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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The Novonix Ltd (ASX: NVX) share price is down 6.4% today and currently trading at $4.68.

There’s been no news today from the ASX lithium-ion battery developer and graphite miner. However, fellow ASX lithium and tech shares are also struggling in afternoon trading.

In the lithium camp, the Lake Resources NL (ASX: LKE) share price has dipped 7.65% to $1.64. The Liontown Resources Limited (ASX: LTR) share price is down 6.14% to $1.38, while shares in Pilbara Minerals Ltd (ASX: PLS) are shedding 5.48% to $2.68. The Core Lithium Ltd (ASX: CXO) share price has lost 4.98% to $1.24.

The market, in general, is down after a sell-off overnight on US markets. The NASDAQ fell by 5% to its lowest level since November 2020. Of course, the ASX is following the US lead, as it usually does. At the time of writing, the S&P/ASX All Technology Index (ASX: XTX) is down 4.08% and the S&P/ASX All Ordinaries Index (ASX: XAO) is down 2.36%.

What’s been happening at Novonix lately?

Last week, Novonix reported its quarterly activities and cash flow for the March 2022 quarter. The company reported “continued strong revenue growth” with customer receipts of $2.11 million due to new accounts and the expansion of existing accounts. At the end of the quarter, Novonix had a cash and cash equivalents balance of $211.8 million.

The Novonix share price rallied on the news and went up 2.15% on the day of the report’s release.

Novonix operates in one of the hottest investment sectors of the moment — lithium. It’s a mineral needed for a bunch of popular everyday items, such as iPhones, laptops, medications, and medical devices.

There is also huge global demand for it in the electric vehicle space as many countries prioritise dealing with climate change and reducing their greenhouse gas emissions.

Novonix share price snapshot

Novonix shares have really taken off over the past two years. In May 2020, the Novonix share price was 23 cents. Since then, it has ascended — wait for it — more than 5,000%. It reached an all-time high of $12.47 in December 2021.

Today, Novonix has a market capitalisation of $2.26 billion with about 486 million shares on issue. The company began trading on the NASDAQ, in addition to the ASX, on 1 February.

The post Why is the Novonix share price down 6% on Friday? appeared first on The Motley Fool Australia.

More reading

• Why is the Core Lithium share price tracing 6% lower on Friday?
• Why is the Pilbara Minerals share price sinking 9% today?
• Investing in ASX lithium shares? Here’s what you need to know
• Here are the top 10 ASX shares today
• 3 ASX 200 mining shares that surged more than 5% today

Motley Fool contributor Bronwyn Allen 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 Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) looks to be on a path to ruining everyone’s weekend with a steep loss this Friday. The ASX 200 has lost a painful 2.32% and is sitting at just under 7,200 points at the time of writing.

But rather than dwelling on that loss, let’s instead take a look at the market’s share volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

Brainchip Holdings Ltd (ASX: BRN)

Our first share to take a glance at today is tech company Brainchip. Brainchip has had a notable 32.04 million of its shares traded on the markets thus far this Friday. This company has had a rather interesting day. Instead of tanking alongside its peers in the tech space, Brainchip has instead shot higher today. It’s currently up by 5.4% at $1.08 a share.

Despite this move, there is no obvious reason why the company has risen. There’ve been no major news or announcements out of the company. But it’s likely that the strong push higher is responsible for so many shares trading today.

AVZ Minerals Ltd (ASX: AVZ)

ASX 200 lithium stock AVZ is next up today. This lithium hopeful has had a sizeable 38.86 million of its shares trade hands as it currently stands. Unfortunately for investors, this seems to be the direct result of the dreadful share price drop AVZ is enduring this Friday. The company has lost 6.9% so far and is down to 78 cents per share. We are seeing similar moves amongst many of AVZ’s peers in the metals space.

Paladin Energy Ltd (ASX: PDN)

Our third, final and most traded company today is none other than ASX 200 uranium share Paladin. Paladin has watched as a whopping 43.44 million of its shares have been bought and sold on the markets so far. But sadly, this appears to be a similar situation to that of AVZ. Expect Paladin shares have lost an even nastier 10.67% so far today and are now going for 74 cents each. It’s this steep selloff that looks to be sparking this elevated trading volume we see.

The post Here are the 3 most heavily traded ASX 200 shares on Friday appeared first on The Motley Fool Australia.

More reading

• Why is the AVZ Minerals share price sliding 7% on Friday?
• Everything you need to know about the latest Macquarie dividend
• ASX 200 midday update: Macquarie and REA updates disappoint
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today

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 Scott Phillips.

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The Hawsons Iron Ltd (ASX: HIO) share price is plunging on Friday despite no word from the company.

Making its slump more interesting, the price of iron ore has increased 1.4% to reach US$144.90 a tonne.

At the time of writing, the Hawsons Iron share price is 64 cents, 9.2% lower than its previous close.

For context, the All Ordinaries Index (ASX: XAO) is also trading lower today. The benchmark index has dropped 2.4%.

Let’s take a look at what’s been happening with the iron ore developer’s stock today.

What’s going on with the Hawsons Iron share price?

Hawsons Iron’s stock is struggling alongside the broader market on Friday.

For those not familiar with the company, it was formerly dubbed Carpentaria Resources, trading under the ticker code ASX: CAP.

Hawsons Iron is developing the Hawsons Iron Project in Broken Hill, NSW. According to the company, the project could produce the world’s highest-grade iron products.

Today’s slump sees the stock dumping most of the 10% gain it recorded yesterday. In fact, the stock has been notably volatile lately.

It surged 18% on Monday. It then hit a new 52-week high of $1.08 on Tuesday before slumping to close 18% lower. It continued that fall on Wednesday, plunging 11%.

Though, long-term shareholders appear to have been rewarded for their suffering.

The Hawsons Iron share price has gained 80% over the last 30 days and 282% since the start of 2022.

The post Hawsons Iron share price tumbles another 9% on Friday. What’s going on? appeared first on The Motley Fool Australia.

More reading

• Hawsons Iron share price volatility continues with more wild swings on Wednesday
• Hawsons Iron share price subjects investors to wild ride on Tuesday
• Guess which ASX iron ore share has surged more than 260% in a month. Hint: it’s not Fortescue

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 Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) looks set to end the week in a very disappointing fashion. At the time of writing, the benchmark index is down 2.3% to 7,194.1 points.

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

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price is down 7.5% to $187.27. Investors have been selling the investment bank’s shares after its full year results disappointed. Although Macquarie reported a profit surge in FY 2022, this still fell short of the market’s lofty expectations. Goldman Sachs was expecting a second-half profit of $2,800 million but Macquarie reported a profit of $2,663 million. Its dividend was also lower than the broker’s estimates.

REA Group Limited (ASX: REA)

The REA share price is down 7% to $113.34. This property listings company’s shares have come under pressure after its third-quarter update came in below expectations. For the three months ended 31 March, REA delivered a 23% increase in revenue and a 27% jump in EBITDA to $155 million. The latter was 6% lower than Goldman Sachs’ estimates.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price has continued its slide and is down a further 10.5% to $4.42. Investors have been selling this online retailer’s shares this week after it announced its expansion into the home improvement market. Management expects this side of the business to be loss-making for several years, which didn’t go down well with the market. In addition, surprisingly weak online retail data out of the US appear to be adding to the selling pressure.

Xero Limited (ASX: XRO)

The Xero share price has dropped 8% to $87.71. This has been driven by major weakness in the tech sector today following a selloff on Wall Street’s tech-focused Nasdaq index. The S&P/ASX All Technology Index is down 4.6% in afternoon trade.

The post Why Macquarie, REA, Temple & Webster, and Xero shares are sinking appeared first on The Motley Fool Australia.

More reading

• Macquarie share price tumbles 8% after FY22 results disappointment
• Here’s why ASX 200 tech shares are having such a disastrous run on Friday
• Everything you need to know about the latest Macquarie dividend
• ASX 200 midday update: Macquarie and REA updates disappoint
• The Temple & Webster share price is being crushed, down 14%

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 positions in and has recommended Temple & Webster Group Ltd and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Macquarie Group Limited, REA Group Limited, and Temple & Webster Group Ltd. 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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The Vanguard Australian Shares Index ETF (ASX: VAS) is, by far, ASX’s investors’ first choice when it comes to index exchange-traded funds (ETFs). Currently, VAS has around $10 billion in funds under management, which is significantly more than its closest ETF rival.

VAS is a rather unique index fund too. It tracks the S&P/ASX 300 Index (ASX: XKO), which is slightly different from the flagship S&P/ASX 200 Index (ASX: XJO) that most ASX index funds go off. An investment in VAS is really an investment in the 300 largest ASX shares on the Australian share market, weighted by market capitalisation.

So since VAS is the most popular ASX ETF, you might think it is also the cheapest. After all, much of the appeal of an index fund is the ultra-low fees investors are charged, especially compared with what an active managed fund levies.

Well, VAS does indeed have a relatively low fee. it charges its investors 0.1% per annum. That equates to $10 a year for every $10,000 invested.

But is VAS the cheapest index ETF on the ASX?

Is the VAS ETF the cheapest ASX index fund?

No, to be quite frank.

The cheapest index fund on the ASX goes to the Vanguard U.S. Total Market Shares Index ETF (ASX: VTS), which charges an annual management fee of just 0.03%. That’s $3 a year for every $10,000 invested. The iShares S&P 500 ETF (ASX: IVV) is right behind VTS with its 0.04% per annum fee.

But these two ETFs are US-based and don’t cover ASX shares.

So what of ASX index funds?

Well, VAS comes from behind in that department too. The iShares Core S&P/ASX 200 ETF (ASX: IOZ) just pips VAS with its fee of 0.09% per annum.

The BetaShares Australia 200 ETF (ASX: A200) does been better, charging a fee of 0.07% per annum.

And yet VAS remains far more popular than either of these funds. Perhaps its VAS’s unique nature in covering the ASX 300 rather than the ASX 200 that keeps investors coming back for more. Or perhaps it’s for a number of other factors. Whatever the true reason, the Vanguard Australian Shares Index ETF remains the indisputable king of the ASX ETF sector.

The post Is Vanguard’s VAS the ASX’s cheapest index fund? appeared first on The Motley Fool Australia.

More reading

• What is the Vanguard Diversified High Growth Index ETF invested in?
• How does the VAS dividend compare to a high-yield ETF?
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in
• Is the Vanguard Australian Shares ETF a good buy at current prices?
• How diversified is the Vanguard Australian Shares Index ETF?

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 recommended iShares Trust – iShares Core S&P 500 ETF. 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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The Rio Tinto Limited (ASX: RIO) share price has dipped its toes into the red on Friday and is currently down 2.84% at $108.41.

It has now fallen almost 4% this week, and 10% over the past month.

While there’s been nothing price-sensitive out of the mining giant’s camp today, commodity and precious metals players have incurred losses across the board.

In wider market moves, the S&P/ASX 300 Metals & Mining Index (ASX: XMM) and the S&P/ASX 200 Materials Index (ASX: XMJ) are each down by 3%.

What’s up with the Rio Tinto share price today?

Australian-based commodity and resources ETFs performed well in 2022 and have realised heavy inflows both as a cause and effect of this trend.

However, these appear to have slowed in recent weeks, with the SDPR S&P/ASX 200 Resources Fund (ASX: OZR) clipping a $7.9 million outflow last month, and another $2.7 million this week, per Bloomberg data.

Hence, market dynamics have weighed in, spurred on by the outlook on Rio’s company fundamentals, according to analysts at JP Morgan.

“[Q1 FY22] iron ore shipments were an 8% miss vs JPM estimates on replacement mine commissioning issues and COVID disruptions,” the broker wrote in a recent note.

“2022 guidance of 320-335Mt is unchanged but given Q1 weakness we believe the market will now move towards the lower end.

“Overall, it was another soft quarter from RIO.”

JP Morgan is neutral on the stock, unlike many others, with 53% of analysts recommending to hold Rio at present, according to Bloomberg data.

The consensus price target on this coverage is $122 per share, suggesting a disconnect in analyst sentiment/outlook versus what the market is pricing for Rio Tinto.

In the last 12 months, the Rio Tinto share price has disappointed and is down 14% in that time. It has secured an 8% gain this year, while the SPDR Resources Fund is up 11%.

The post Why is the Rio Tinto share price stretching down a further 3% on Friday? appeared first on The Motley Fool Australia.

More reading

• ASX 200 mining shares slump, dragging index into the red
• After dropping 7% in a month, can the Rio Tinto share price stage a comeback in May?
• Here’s how some of the biggest ASX 200 shares are responding to the RBA’s rate rise
• What’s the outlook for ASX 200 mining shares in May?
• The Rio Tinto share price delivered a disappointing performance in April. Here’s why

Motley Fool contributor Zach Bristow 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 Scott Phillips.

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The BHP Group Ltd (ASX: BHP) share price is falling on Friday despite no word having been released by the company.

But at least it’s not alone. It’s joined in the red by most of its S&P/ASX 200 Index (ASX: XJO) peers.

At the time of writing, the BHP share price is $46.16, 2.51% lower than its previous close.

That’s despite the price of iron ore rising 1.4% to US$144.90 per tonne.

However, the ASX 200 is plunging 2.36%. Meanwhile, BHP’s home sector – the S&P/ASX 200 Materials Index (ASX: XMJ) ­– is underperforming.

Let’s take a look at what’s going on with the iron ore giant and its peers on Friday.

BHP share price slumps on Friday

The BHP share price is following the market into the red on Friday. Though, it’s outperforming many of its ASX 200 material producing peers.

Right now, the ASX 200 materials sector is recording a 2.85% drop.

The drop is led by lithium stocks, with the AVZ Minerals Ltd (ASX: AVZ) coming in as the sector’s worst performer. Its share price is currently down 7.7%.

Other major fallers include shares in Pilbara Minerals Ltd (ASX: PLS), Sims Ltd (ASX: SGM), and Liontown Resources Limited (ASX: LTR) – each having dropped around 6%.

The BHP share price is also outperforming that of fellow resources giant, Rio Tinto Limited (ASX: RIO). It’s currently down 3.07%.

The rough day on the market follows a similarly dire session in the US.

While most of Australia slept, the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average each fell between 3% and 5%.

The US markets’ suffering followed the US Federal Reserve’s decision to raise interest rates by 0.5% in an attempt to reduce inflation.

The post The BHP share price is tumbling 3% on Friday. What’s going on? appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for the BHP share price in May?
• Analysts name 2 inflation-beating ASX dividend shares to buy
• ASX 200 mining shares slump, dragging index into the red
• Here’s how some of the biggest ASX 200 shares are responding to the RBA’s rate rise
• The BHP share price has lost 10% in 2 weeks. Here’s why this expert is tipping a recovery

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 Scott Phillips.

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The AVZ Minerals Ltd (ASX: AVZ) share price is tracing lower today and is currently down 7.5% at 78 cents.

While there have been no market-sensitive updates from the company today, ASX miners and metals producers are trading down in Friday’s session.

In wider market moves, the benchmark S&P/ASX 200 Index (ASX: XJO) is lower on Friday as well, currently down 2.3% at 7,193 points.

What’s up with the AVZ Minerals share price today?

Market data from Bloomberg reveals the commodity ‘factor’ that’s been driving returns in recent months has begun to slow.

That trend is matched in the level of outflows seen in investment vehicles that track various indices tied to commodities such as metals and energy.

“Precious metals and commodity ETFs are experiencing outflows,” portfolio manager Ingo Kurick wrote, citing The Daily Shot.

“Are investors realising peak inflation? Are [there] already fears of a recession coming? Or [are they] just taking profits after the rapid development?”

Extrapolating this data onto the Australian markets sees an uncanny resemblance, with indices tracking Australian materials, metals, and mining companies faltering this past month.

The S&P/ASX 300 Metals & Mining Index (ASX: XMM) has fallen 12% since 19 April, while the S&P/ASX 200 Materials Index (ASX: XMJ) has slipped by a similar amount.

Both are leading sectors this year to date, although have caved from 52-week highs since then and remain heavily compressed in May.

What else is weighing in?

The AVZ share price has suffered a similar fate since 19 April and is trading in line with the wider sector moves.

Earlier this week, AVZ provided an update on its operations in the Democratic Republic of Congo (DRC). The company revealed a mining licence has been awarded to its 75%-owned Dathcom Mining SA business for the flagship Manono Lithium and Tin Project. 

As reported by The Motley Fool Australia, comments in the release relating to Manono Project ownership claims might have had a negative effect on the AVZ share price.

Apparently, AVZ wants to acquire the remaining interest in Dathcom Mining SA. AVZ is in a joint venture with La Congolaise D’Exploitation Miniere SA.

Under the original terms of the JV, La Congolaise agreed to cede 10% of its interest to the DRC Government. However, La Congolaise has reportedly transferred its stake to Jin Chen Mining Company, with no apparent reasoning.

This could result in AVZ seeing its ownership in Dathcom reduced to 51%, whereas it had previously sought to sell its stake for US$240 million.

In the last 12 months, the AVZ share price has shot up by 427%. It is up just 2% this year to date after a 35% downfall over the past month of trade.

The post Why is the AVZ Minerals share price sliding 7% on Friday? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the share market’s volume charts on Thursday
• What will the lithium price be in 2025?
• Why ARB, AVZ, Temple & Webster, and Zip shares are sinking
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why the AVZ share price went from being up 19% to down 20% today

Motley Fool contributor Zach Bristow 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 Scott Phillips.

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