Month: May 2022

The Hawsons Iron Ltd (ASX: HIO) share price is off to a positive start on Friday following a company update.

At the time of writing, the resource developer’s shares are up 3.28% to 63 cents.

What did Hawsons announce?

In the morning, Hawsons provided investors with a board appointment, pushing its shares higher.

According to its release, Hawsons announced the inclusion of experienced resources industry professional, David Woodall to its board.

Serving as a non-executive chair effective today, Mr Woodall brings a wealth of experience to the role. His knowledge spans across the energy industry in the last 50 years with a focus on both commercial and not-for-profit sectors.

Mr Woodall sat on the boards of Ergon Energy, Energex, Tarong Energy Corporation, Terra Gas Traders, Starfish Windfarm, and others.

He spent many years at Australian mining company MIM, culminating in the role of executive general manager in marketing and commercial.

Mr Woodall also served as the managing director at Grainco Australia, a major bulk agri-commodity marketer and handler.

Furthermore, Mr Woodall has a high level of Chinese skills, having taken up several terms as chair of the Queensland – China Council.

Current executive chair, Bryan Granzien commented:

Dave has been involved with Hawsons for almost 18 months now, most recently as a member of our Advisory Committee appointed earlier this year to provide the Board with strategic advice on the progress and quality of our bankable feasibility study (BFS).

I look forward to working closely with Dave to realise the exciting opportunity for our company and Hawsons Iron Project to be a leading supplier of high-quality magnetite, vital to lowering emissions in ‘green steel’ making.

Mr Granzien will move into the performance-management role of managing director and concentrate on the delivery of the Hawsons Iron Project’s BFS.

Hawsons share price snapshot

Over the last 12 months, Hawsons shares have accelerated by more than 475%.

The company’s share price reached an all-time high of $1.08 per share earlier this month, before retracing to 60 cents.

On valuation grounds, Hawsons has a market capitalisation of around $443.33 million, with almost 715.06 million shares on its registry.

The post Here’s why the Hawsons Iron share price is climbing today appeared first on The Motley Fool Australia.

More reading

• Hawsons Iron share price slumps 9% then rebounds following project update
• Why did the Hawsons Iron share price stage such a stunning comeback today?
• Why did the Hawsons Iron share price plunge more than 23% today?
• Hawsons Iron share price tumbles another 9% on Friday. What’s going on?
• Hawsons Iron share price volatility continues with more wild swings on Wednesday

Motley Fool contributor Aaron Teboneras 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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Fortescue Metals Group Limited (ASX: FMG) has some ambitious plans when it comes to green energy.

Namely, the S&P/ASX 200 Index (ASX: XJO) iron ore giant is looking to become the global leader in the production of green hydrogen.

Green hydrogen, if you’re not familiar, comes from splitting water molecules (H20) into their elemental parts. Oxygen and hydrogen. With sustainable energy sources used in the process, it essentially produces zero carbon emissions.

Fortescue Future Industries

Fortescue Future Industries (FFI) is the green energy offshoot of the iron ore business.

FFI has a bold goal of producing 15 million tonnes of green hydrogen annually by 2030. A goal not everyone believes is achievable.

But that’s not stopping chairman and CEO Andrew ‘Twiggy’ Forrest from ploughing ahead.

As the Motley Fool reported, among other ventures, FFI is partnering with Airbus to develop green hydrogen for aircraft. FFI is also investigating setting up future green hydrogen projects in Papua New Guinea and Argentina, potentially opening up vast new regional supply routes.

While all that sounds promising, Fortescue Future Industries hasn’t produced any green hydrogen yet.

Which brings us to…

How soon can FFI start making money from green hydrogen?

Addressing the hydrogen conference in Barcelona, Spain, Forest said he expects FFI will be producing commercial quantities of green hydrogen “inside the next two or three years”.

Earlier this week Twiggy revealed he’s temporarily stepping back in as CEO of Fortescue. The company has as yet failed to find a suitable replacement for outgoing CEO Elizabeth Gaines, who is stepping down in August.

Forest relinquished his role as CEO back in 2011.

Under a new company structure, FFI and Fortescue will each have their own CEOs, both of who will report to the Board.

Forest seems confident with the arrangement, saying (quoted by The Australian):

I’m happy to call myself a Plan B and from a shareholder perspective, the response we’ve had is ‘that’s a bullet proof plan B’. We will be making the appointments and having people join us when their current agreements allow.

As far as the difficult road ahead yet in transitioning to a global green hydrogen producer, he added:

It takes immense courage to pivot your successful business away from that successful business and into also a huge new industry where this has never been done. That’s where we’re breaking new ground. This is raw courage and has to be done on great scale.

How has the ASX 200 iron ore giant been tracking

Up 1.9% in early morning trade, the Fortescue share price is now just about flat for the year.

That compares to a 6% loss posted by the ASX 200.

Fortescue also pays the highest trailing dividend yield amongst ASX 200 miners, currently at 15.3%, fully franked.

The post How soon can Fortescue start making money from green hydrogen? appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for Fortescue shares with Twiggy at the helm?
• Fortescue share price pushes higher following leadership changes
• ASX 200 midday update: BlueScope and Fortescue rise, Boral tumbles
• Why I think these are the best ASX dividend shares to buy right now
• Fortescue share price on watch after Twiggy returns to top job

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Volatility in the cryptocurrency market continues to make headline news. However, today’s price action has broadly taken a bullish turn this afternoon, with many top tokens moving from the red into the green in afternoon trading 

As of 2:45 p.m. ET, Ethereum (CRYPTO: ETH), Dogecoin (CRYPTO: DOGE), and The Sandbox (CRYPTO: SAND) surged 2.2%, 1.1%, and 3.5%, respectively, over the past 24 hours.

This move higher appears to be the result of positive sentiment building around what could be a more constructive environment for crypto. Each of these top tokens has its own catalysts that bulls are relying on to make a buying decision, despite the selling pressure we’ve seen of late.

Recent news that Ethereum and other top cryptocurrencies could be graded as commodities by the Commodity Futures Trading Commission has some investors bullish on Ethereum, relative to other tokens. This megacap token continues to hold much steadier than smaller counterparts, largely due to the view that Ethereum is an asset class in and of itself.

Dogecoin has benefited greatly from the Elon Musk saga with Twitter of late. With the self-proclaimed “Dogefather” set to take the helm (though he’s now fighting this acquisition), there’s something for Dogecoin investors to look forward to. Uncertainty remains around whether the deal will get done, but more discussion around Dogecoin is generally something its bulls view positively.

The Sandbox has seen a number of high-profile brands join its metaverse, with interest seeming to surge in this sector. Should this bullish momentum in the metaverse continue, bulls have reason to like how this token is positioned.

So what

Generally speaking, taking a quick look at what equity markets are doing on a given day is a pretty good predictor of where crypto prices are headed. There’s been historically high correlation between cryptocurrencies and riskier equities such as tech stocks this year. However, the choppiness of the stock market and the volatility we’re seeing in the crypto market today have somewhat diverged.

Much of that appears to be due to the view that there are fundamental reasons to consider various top cryptocurrencies at these levels. Whether it’s Ethereum’s stability or the speculative upside that Dogecoin and The Sandbox provide, these lower token prices could represent intriguing entry points for aggressive investors looking to add risk.

Now what

The real question from here is just how aggressive investors will be. The decision to add risk at a time when there’s little support for risk assets can be a daunting one. Accordingly, perhaps this is just another bear market bounce on a longer-term trend downward. 

Time will tell. Today, investor sentiment appears to be improving. Tomorrow, we’ll see how the market reassesses this rally. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Ethereum and Dogecoin are recovering nicely today appeared first on The Motley Fool Australia.

More reading

• Own crypto or NFTs? Here’s why the ATO could have you in their sights come tax time
• Why is the Ethereum price down 48% this year?
• Why Bitcoin, Ethereum, and Dogecoin are falling today
• Why Bitcoin and Ethereum popped on Tuesday
• Can regulators prevent another US$45 billion crypto stablecoin meltdown?

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum and Twitter. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The MyDeal.com.au Ltd (ASX: MYD) share price is launching upwards this morning after Woolworths Group Ltd (ASX: WOW) offered to buy most of the online marketplace’s shares at a 63% premium.

The supermarket giant tabled a proposal to buy 80.2% of MyDeal shares for $1.05 apiece.

The MyDeal share price closed Thursday’s session trading at 65 cents.

At the time of writing, it has surged to reach $1, representing a 55.81% gain.

Let’s take a closer look at the takeover proposition boosting the online retailer’s stock today.

Woolworths proposes MyDeal takeover

The MyDeal share price is leaping on Friday after S&P/ASX 200 Index (ASX: XJO) giant Woolworths offered to snap up most of the company’s stock for $1.05 per share.

Woolworths’ offer values MyDeal’s equity at $271.8 million and implies an enterprise value of $242.6 million.

It will also provide investors who got in on the online marketplace provider’s 2020 initial public offering (IPO) – wherein shares were offered for $1 – a 5% gain on their investment.

The MyDeal board are recommending shareholders vote in favour of the proposition. That is, unless a better offer comes along or an independent expert rules it’s not in shareholders’ best interests.

Investors representing around 76% of the company’s stock have voiced their intent to vote in favour of Woolworths’ takeover. That includes CEO Sean Senvirtne, who currently holds a 47.3% stake in MyDeal.

All the takeover goes to plan, Senvirtne will sell 60% of his holding and walk away with an 18.9% stake.

MyDeal chief product officer Kate Dockery and chief merchandising officer Dean Ramler will also retain stakes of 0.5% and 0.4% respectively.  

Senvirtne commented on the news driving the MyDeal share price sky high today, saying:

[The acquisition] will help support the growth of our retail platform by accessing Woolworths Group’s capabilities across e-commerce, supply chain, retail, loyalty and more.

The companies expect shareholders to vote on the transaction next quarter with MyDeal earmarked to be delisted after its implementation.

MyDeal share price snapshot

Today’s gains have boosted the MyDeal share price back into the long-term green.

It is now trading 34% higher than it was at the start of 2022. It’s also nearly 83% higher than this time last year.

The online retailer listed at the height of the COVID-19 online shopping boom. Its highest-ever close – at $1.71 – came on the evening following its float. The stock is currently trading 41% lower than that point.

The post Here’s why the MyDeal share price is rocketing 56% today appeared first on The Motley Fool Australia.

More reading

• Woolworths share price in focus on MyDeal acquisition proposal
• Why is the Woolworths share price sliding 7% today?
• Own Woolworths shares? The company’s about to hit a major sustainability milestone
• Why I think Coles is a better ASX dividend share than Woolworths
• Is the Telstra share price cheap compared to other ASX 200 shares?

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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I believe Altium Limited (ASX: ALU) shares could be worth holding onto for the long term at the software provider’s current share price of $28.19.

Businesses that are growing profit and are expecting long-term growth are contenders to deliver good compounding over time.

Altium is one of the world leaders in the electronic PCB software design space.

I think the company could be good to keep hold of for the below three reasons:

Growth of electronic devices

Altium points out that electronics are at the heart of all intelligent systems and printed circuit boards are central to the design and realisation of electronics and smart connected products. For example, electronics are responsible for 40% of a new car’s total cost, according to Altium.

Management says the electronic industry is ripe for disruption and that “Altium is well-positioned to disrupt the way electronic products are designed and manufactured”.

It’s estimated that the number of active ‘internet of things’ devices will surpass 25.4 billion in 2030. The company says this is one of the trends that is driving Altium’s growth. In my opinion, this could be a useful boost for Altium shares over the long term.

Altium claims to have the best PCB design tools and cloud platform for the electronics industry with “deep user-centricity and a proven ability to ‘out-innovate’ the competition.”

Rising profitability

In the FY22 half-year result, the company saw its revenue rise by 28%. Altium’s net profit after tax (NPAT) increased by 37.7% over the period to US$22.9 million.

The business saw its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) margin improve from 30.6% in the prior corresponding period to 34.1% in HY22.

Altium is expecting its underlying EBITDA margin in FY22 to be between 34% and 36%. By FY25 or FY26, it is expecting the underlying EBITDA margin to grow to between 38% and 40%.

By FY25 or FY26, Altium is also expecting it will have at least US$500 million of revenue and 100,000 subscribers. It’s thought by management that 95% of revenue will be recurring by FY25 or FY26.

As profit margins increase, it means that more of the new Altium revenue can turn into net profit for the business. I think that could make Altium shares more attractive.

The company’s ongoing levels of profitability also mean the earnings generated can be used to strengthen the balance sheet and pay shareholders growing dividends.

Strong balance sheet and cashflow

At the end of December 2021, Altium had US$195 million of cash. This was partly due to the US$33.3 million of operating cash flow the ASX tech share generated in the first six months of FY22. That operating cash flow figure of US$33.3 million was 78% higher than the prior corresponding period.

Altium can use that cash to invest in more growth, make acquisitions, and pay larger dividends. I think all of these could be good for shareholders.

In the HY22 result, the Altium board decided to increase the interim dividend by 10.5% to 21 cents per share.

One of the features of the Altium balance sheet is that it has no debt. I think that puts Altium in a good position in a world where the cost of debt is rising.

Final thoughts

I think Altium is a quality business with very effective leadership. It has compelling financial metrics, a positive future, and useful tailwinds. That’s why I’m holding it in my portfolio for the long term.

The post 3 reasons to own Altium shares for the long term appeared first on The Motley Fool Australia.

More reading

• You won’t find more profitable ASX tech shares than these companies right now
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Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. 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 APA Group (ASX: APA) share price is currently up more than 1% amid news that the gas and energy infrastructure business is a possible takeover target.

APA owns an extensive 15,000km gas pipeline in Australia which connects sources of supply and markets across mainland Australia. It operates and maintains networks that connect 1.4 million Australian homes and businesses to the benefits of natural gas. It delivers half of the nation’s natural gas usage.

Takeover speculation

According to reporting by The Australian, APA is being looked at by at least one potential buyer, according to the newspaper’s sources.

How close is a takeover bid? The newspaper reported that a party hasn’t yet made an approach to the APA board, but “the talk” is that there is at least one prospective buyer thinks it would be “better placed to oversee an energy transition of the business away from gas.”

It would be a hefty takeover if it were to go ahead. The APA market capitalisation is $13.7 billion according to the ASX, before today’s APA share price movement.

However, it was pointed out that plenty of the potential investors may not be interested in buying APA because of the fact that it has gas-related assets – many funds would prefer targets that are more environmentally friendly.

Potential buyer

The Australian named US investor Global Investment Partners as one fund that “could buy the business”. It has already shown interest in Australian assets after buying a stake in the Woodside Petroleum Limited (ASX: WPL) Western Australian Pluto Train 2 project for around $4 billion.

Some of GIP’s assets around the world are gas pipelines, so APA’s assets could make sense for its asset base.

APA is also on the hunt

Despite the volatility that the global economy is seeing with inflation and rising interest rates, APA is also reportedly interested in making its own deals.

The Australian reported that APA is looking at a $4 billion electricity transmission business in the US, the Basslink power cable, Renewable Energy Zones and CWP Renewables in Australia.

Previously, the company had also been looking at gas opportunities including the Chesapeake Utilities Corporation (NYSE: CPK), according to the newspaper.

What next for the APA share price?

APA has recently given investor presentations showing how decarbonisation and the rise of new energy technologies is creating opportunities in electricity transmission and renewable energy microgrids. However, it notes that gas still has a “critical” role to play.

The business is looking at converting (some of) its pipelines to carry hydrogen. It could also carry a blend of hydrogen and natural gas.

In a few months, APA will release its FY22 result and it’s expected to pay its FY22 final distribution.

The APA share price has risen around 15% since the start of 2022.

The post APA share price rises amid takeover rumours appeared first on The Motley Fool Australia.

More reading

• I like APA as an ASX dividend share idea. Here’s why
• Own APA shares? Here’s the latest on the company’s ‘ground breaking’ green hydrogen project
• 2 ASX dividend shares that keep giving investors pay rises
• Here’s why the APA share price is in the green today
• How big is the APA dividend yield going to be in 2022?

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 positions in and has recommended APA Group. 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 Australian Vanadium Ltd (ASX: AVL) share price has returned from its trading halt and tumbled deep into the red.

At the time of writing, the vanadium developer’s shares are down 17% to 4.7 cents.

Why is the Australian Vanadium share price sinking?

The catalyst for the weakness in the Australian Vanadium share price on Friday has been the completion of the company’s equity raising.

According to the release, the company has received firm commitments from existing and new institutional, professional, and sophisticated investors to raise $20 million before costs.

Australian Vanadium is raising the funds through the issue of approximately 425.5 million new shares at a 17% discount of 4.7 cents per share.

The company will now seek to raise a further $7.5 million via a share purchase plan (SPP). These funds will be raised at the same price as the placement.

Though, given the weakness in the Australian Vanadium share price today, it’s unclear how many shareholders will take part given they could just buy shares on-market at the same price.

Why is Australian Vanadium raising funds?

The release explains that the funds raised under the placement and SPP will be used to finance ongoing work at the company’s Australian Vanadium Project. Proceeds will also be used to develop key downstream markets ahead of finalising debt financing and a final investment decision.

Australian Vanadium’s Managing Director, Vincent Algar, commented:

We are extremely pleased with the overwhelming support we have received for this capital raising. The capital raising saw new institutional and sophisticated investors join the register, as well as receiving strong participation from AVL’s existing shareholders.

We are also pleased to provide an opportunity for our valued retail investors to participate in the capital raising through the offer of the SPP. The funds raised through the Placement and the SPP will ensure that the Company remains well funded while we implement the next phases of the development program for the Australian Vanadium Project.

The post Why is the Australian Vanadium share price crashing 17% today? appeared first on The Motley Fool Australia.

More reading

• Why has the Australian Vanadium share price crashed 31% in a month?
• 3 critical minerals you might not have heard of (and the ASX shares that have surged because of them)

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 Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Despite the Nasdaq turning the slightest shade of green today, shares of tech stalwart Apple (NASDAQ: AAPL) dipped in afternoon trading. As of 2:30 p.m. ET, the Naz was up a fraction of 1% — but Apple stock was down 2.2%. 

Don’t expect that to last very long.

So what

On the one hand, yes, some of the Apple news today is not great. As TheFly.com reports, Bank of America shaved $15 off of its price target on Apple stock this morning. Citing both supply chain and macroeconomic (i.e., inflation and interest rates) headwinds, BofA warned that Apple’s valuation multiple is getting compressed.

On the other hand, though, BofA also said that there are now 1.8 billion iPhones out there in the world, hinting that this huge “installed base” bodes well for sales of services, and of replacement iPhones, and of other Apple merchandise, going forward.

Now what

Speaking of which, that brings us to the other positive Apple news today. Bloomberg just reported that Apple’s augmented and virtual reality headset — still just rumored to be in development as recently as December — has now advanced to the point that Apple was able to present a prototype to its board of directors for review.  

Details remain sparse at present — how much the device will cost, and precisely when it might go on sale, for example. But the fact that Apple has presented the device to its board for sign-off suggests that the new device could come to market soon, and even high price tags haven’t done much to dent the popularity of Apple’s iPhones and iWatches. (The opposite is more accurate, as consumers view them as prestige products.)

With Apple shares down 24% since the start of the year, valued only about 10% above the average P/E ratio on the S&P 500, and pegged for 12% long-term earnings growth, buying Apple stock right before it introduces an exciting, brand new product category might not be the worst idea I’ve ever heard. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Apple stock slipped on Thursday appeared first on The Motley Fool Australia.

More reading

• Why Apple Stock is falling today
• The single greatest investing lesson I ever learned
• 4 ASX shares of the most trusted brands in Australia
• Will Microsoft and Apple shares finally give way in the stock market’s downturn?
• Why Apple stock withered on Wednesday

Rich Smith has no position in any of the stocks mentioned. Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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If you’ve been buying and selling crypto or non-fungible tokens (NFTs) during the course of the financial year, the Australian Taxation Office (ATO) could be throwing some extra attention your way this year.

This comes as the agency says it’s going to put extra focus on work-related expenses (particularly if you’re working from home), income from rental properties and, yes, any capital gains you may have made selling your crypto holdings.

With more than a million Aussies estimated to have transacted in digital currencies and NFTs this year, the ATO’s staff may be logging some overtime.

What not to do if you’ve lost money on cryptos or NFTs

Depending on your timing, you may have made or lost a fair bit of money in the notoriously volatile crypto market this year.

Remember, it was only back in November when the world’s top two tokens by market cap – Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) – were trading at record highs.

Since then Ethereum has lost 60% of its value and Bitcoin is down 58%.

If you’ve lost money on the way down, don’t try to offset that against your salary.

According to ATO assistant commissioner Tim Loh (quoted by 9 News):

Crypto is a popular type of asset and we expect to see more capital gains or capital losses reported in tax returns this year. Remember you can’t offset your crypto losses against your salary and wages.

Through our data collection processes, we know that many Aussies are buying, selling or exchanging digital coins and assets so it’s important people understand what this means for their tax obligations.

The ATO’s website helpfully adds, “Everybody involved in acquiring or disposing of cryptocurrency needs to keep records in relation to their cryptocurrency transactions.”

How to pay taxes on your digital asset investments

Back in March, The Motley Fool reached out to Mark Chapman, director of tax communications at H&R Block Australia, to help our readers get their crypto and NFT related tax filings in order.

He covered important topics like when the ATO considers disposal of your digital investments to occur, as well as the critical distinction on whether the tax agency will consider you to be a crypto investor or trader.

Then there’s the tricky question about avoiding the capital gains tax (CGT) by claiming a personal use exemption.

While that’s not entirely off the table, Chapman offered this advice:

Some taxpayers mistakenly think that you can buy up to $10,000 of crypto and avoid CGT by taking advantage of the personal use exemption.

This exemption only applies where the cost of the cryptocurrency does not exceed $10,000 and you can demonstrate that the cryptocurrency was to fund genuine personal consumption, such as paying for a holiday, a car, your wedding, etc.

Mistakenly relying on this exemption is one of the biggest reasons people fall foul of the ATO. Expect to be asked to provide proof that you either did – or intended to – use your cryptocurrency to fund personal spending on goods and services.

Where the cost of your crypto assets exceeds $10,000, the personal use exemption will not be available and CGT will apply, whether the asset was for personal use or not.

You can find that full interview here, with plenty of handy NFT and crypto tax tips from Chapman.

The post Own crypto or NFTs? Here’s why the ATO could have you in their sights come tax time appeared first on The Motley Fool Australia.

More reading

• Why is the Ethereum price down 48% this year?
• Why Bitcoin, Ethereum, and Dogecoin are falling today
• Why Bitcoin and Ethereum popped on Tuesday
• Using Bitcoin to diversify your portfolio? Read this
• Why Shiba Inu is down today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. 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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After three weeks offline, the AVZ Minerals Ltd (ASX: AVZ) share price was due to return to trade today.

However, as many likely suspected, the lithium developer’s shares will remain halted for a little while longer.

What’s going on with the AVZ share price?

On 9 May, the company requested a trading halt pending the release of an announcement relating to mining and exploration rights for the Manono Lithium and Tin Project in the Democratic Republic of the Congo.

However, a couple of days later, AVZ realised that it needed more time after being hit with arbitration proceedings by Jin Cheng Mining Company.

In light of this, the company asked for the Australian stock exchange to suspend its shares until today.

This extra time has proven insufficient and the AVZ share price now looks set to remain suspended until the end of the month.

This morning AVZ stated:

The Company advises that as at the date of this letter, the subject of the initial trading halt request remains incomplete. Accordingly the Company requests an extension to the voluntary suspension until the commencement of trade on 1 June 2022 or an announcement to the market regarding its mining and exploration rights for the Manono Project.

Though, whether that will be enough time for the company to resolve this incredibly messy situation remains unclear.

What’s happening?

AVZ has been hit with arbitration proceedings by Jin Cheng Mining Company in the International Chamber of Commerce in Paris (ICC) to pursue claims by Jin Cheng to be recognised as a shareholder of Dathcom Mining SA.

Dathcom is the owner of the mining licence for the Manono Lithium and Tin Project.

AVZ currently owns 75% of Dathcom and therefore 75% of the project. However, Jin Cheng claims that it acquired a 15% shareholding in Dathcom from La Congolaise D’Exploitation Miniere SA (Cominiere).

This is where it gets particularly messy. It remains unclear where this 15% share comes from.

What are the potential ownership scenarios?

AVZ has had a number of opportunities to clear up the ownership structure but has so far failed to do so. This has led to a range of ownership scenarios being bundled around.

Essentially, at best, AVZ will own a 66% stake after selling 24% to Suzhou CATH Energy Technologies for a US$240 million investment and acquiring 15% from Cominiere (which it believes it is entitled to).

At worst, AVZ will own just 36% of the project after the sale to Suzhou CATH Energy Technologies, the potential loss of 15% to Jin Cheng, and the potential failure to acquire 15% from Cominiere.

Finally, in the middle, there’s the possibility that AVZ sells its 24% stake to Suzhou CATH Energy Technologies and does nothing else, leaving it with a 51% stake.

Given the wide range of ownership scenarios, it’s no wonder the AVZ share price is suspended.

Depending on the outcome, the AVZ share price could either be severely overvalued, severely undervalued, or just right.

This once again highlights why investing in shares that are operating in countries like the Democratic Republic of the Congo carry significant risk.

The post What’s happening with the AVZ Minerals share price now? appeared first on The Motley Fool Australia.

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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 Scott Phillips.

from The Motley Fool Australia https://www.fool.com.au/2022/05/20/whats-happening-with-the-avz-minerals-share-price-now/