Day: August 5, 2022

The iron ore price has slumped 10% in 5 days. Here’s how ASX 200 mining shares have responded.

a man wearing a hard hat stands in front of heavy mining machinery with a serious look on his face.a man wearing a hard hat stands in front of heavy mining machinery with a serious look on his face.

The price of iron ore has slumped 10% this week amid ongoing macroeconomic uncertainty.

This includes the contraction in China’s economic activity and widespread fears of a looming recession.

Iron ore is essential to the revenues of the major miners on the S&P/ASX 200 Index (ASX: XJO). As such, changes in its price can lead to considerable swings in those companies’ share prices.

Although correlation is not causation, let’s check how the shares of the ASX iron ore giants have fared over the last five days. 

How have the ASX’s big iron ore players held up this week?

Shares of Rio Tinto Ltd (ASX: RIO) are down 1.22% over the last five trading days. A contraction in Rio’s share price is to be expected as iron ore is the company’s largest business segment, accounting for 80% of its earnings in 2021.

Another factor that may be squeezing Rio shares – and those of other iron ore producers – is the formation of the China Mineral Resources Group.

The entity could attempt to drive down the price of iron ore through the process of collective bulk buying on behalf of domestic companies in China.

BHP Group Ltd (ASX: BHP) also experienced a minor dip with its share price down 0.69% over the last five days. BHP also generates the majority of its revenue from iron ore, but it is considerably more diversified than Rio. This could explain why its contraction is less.

In 2021, 57% of BHP Group’s revenues came from iron ore, while its second-largest operating segment was copper, contributing 25%.

Lastly, Fortescue Metals Group Ltd (ASX: FMG) shares dipped 0.82%. Iron ore is Fortescue’s primary operating segment, contributing $8.39 billion in revenue in 2021. 

The post The iron ore price has slumped 10% in 5 days. Here’s how ASX 200 mining shares have responded. appeared first on The Motley Fool Australia.

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*Returns as of July 7 2022

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Motley Fool contributor Matthew Farley 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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Why is the Pilbara Minerals share price having such a strong end to the week?

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

The Pilbara Minerals Ltd (ASX: PLS) share price had a good end to the week, lifting 3.61% to close on Friday at $2.87%.

This ASX lithium share has seen a lot of volatility in the last few weeks and months.

However, investors in the miner may have a reason to smile after the business provided an optimistic presentation at the Diggers & Dealers Mining Forum.

In the presentation, the company said it had enjoyed an amazing growth journey with more to come.

Highlights recap

A key factor that affects the performance of commodity companies is the price of the resource.

Pilbara Minerals advised that lithium pricing remained “strong”. The ASX lithium share said this placed the business in a “prime position” to capitalise on current market conditions, including selling spodumene concentrate from the Ngungaju Plant.

The company noted that the lithium deficit was expected to grow and, by 2040, might be the equivalent of around 18 Pilgangooras.

Pilbara Minerals is benefiting from the strong pricing, and this is helping build its cash balance. It had a cash balance of $874.2 million on 30 June 2022.

A key part of the company’s strategy is value-added products that can help increase its margin. It is positioned to capture value throughout the entire lithium raw material and chemical supply chain. That includes spodumene, lithium salts and lithium fine chemicals.

Pilbara Minerals share price snapshot

Over the past month, the Pilbara Minerals share price has risen by 32%.

The post Why is the Pilbara Minerals share price having such a strong end to the week? 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

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*Returns as of July 7 2022

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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 Scott Phillips.

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These 3 ASX tech shares had a cracking day on the ASX today

Group of people cheer around tablets in office

Group of people cheer around tablets in office

It ended up being a very pleasing end to the week for ASX investors this Friday. As of market close, the All Ordinaries Index (ASX: XAO) has closed up a healthy 0.59% at 7,250.3 points. But many ASX tech shares fared even better.

So let’s check out three that had an absolutely cracking end to the trading week on the ASX today.

3 ASX tech shares that had a cracking day on the ASX today

Novonix Ltd (ASX: NVX)

Our first ASX tech share to check out is battery tech company Novonix. Novonix shares had a corker rising a pleasing 13.65% to $3.08 a share over today’s session.

This staggering move was despite a complete absence of any news out of the company, as my Fool colleague Bronwyn covered earlier. This latest move means that the Novnix share price is now up more than 32% over the past month alone.

Saying that, the company remains down a painful 70% or so over 2022 thus far. Its current 52-week high of $12.47 still looks like a long way off too.

Weebit Nano Ltd (ASX: WBT)

Next up is ASX tech share Weebit Nano. Weebit Nano shares enjoyed more than a (apologies) wee bit of a gain today. The semiconductor company rose an impressive 9.06% over today’s session to finish up at $3.01 a share.

There’s been no news out of this company since its investor presentation that was released on Monday. This was initially poorly received. But since Tuesday, Weebit Nano shares have risen by more than 12%, so perhaps investors have changed their minds.

Life360 Inc (ASX: 360)

Finally, we have location-sharing software company Life360. As you might guess, Life360 shares also had a very successful trading day this Friday.

The company ended up closing at $4.96 a share, up a healthy 5.76%. This one is a little more of a mystery. The company hasn’t put out much in the way of news at all in recent weeks. Yet it has risen close to 15% since Wednesday this week.

Perhaps the bullish broker note my Fool colleague James went through late last month could have played a role. Broker Bell Potter rated the company as a “buy”, with a share price target of $7.50. That might have tempted a few buyers this week.

The post These 3 ASX tech shares had a cracking day on the ASX today 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

See The 5 Stocks
*Returns as of July 7 2022

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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 positions in and has recommended Life360, Inc. 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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Why is the Piedmont Lithium share price off to such a great start in August?

Two smiling men in high visibility vests and yellow hardhats stand side by side with a large mound of earth and mining equipment behind them smiling as the Carnaby Resources share price rises todayTwo smiling men in high visibility vests and yellow hardhats stand side by side with a large mound of earth and mining equipment behind them smiling as the Carnaby Resources share price rises today

The Piedmont Lithium Inc (ASX: PLL) share price has finished the week higher, closing on Friday at 66 cents.

After finding a bottom on 15 July, Piedmont shares have curled upward and are now testing their June FY22 levels again.

Investors have pushed the stock up to this level on no news. As seen below, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) has also ticked up lately, and currently trades 2% higher on the month.

TradingView Chart

What’s up with the Piedmont share price?

Despite no market-sensitive news recently, Piedmont shares have drifted higher in unison with the metals and mining index, as seen above.

The index, a benchmark for listed metals and mining companies on the ASX, has basically mirrored the Piedmont share price this year to date – or, more likely, the other way around.

As the sector continues strengthening, it stands to reason that Piedmont is attracting buys on the back of this, in the absence of any other data.

Further, whilst numerous commodity baskets enter sell-off mode and trim most of 2022’s gains, lithium remains in its place on the mantlepiece and has clipped a 418% YoY gain.

The impact of lithium’s top-heaviness has seen ASX lithium players catch a bid in the last few weeks, alongside peers in the sector.

As such, the Piedmont Lithium share price boasts a 26% gain over the past month of trade, narrowing its YTD loss to just 10%.

Amid the market turbulence, brokers have been unswayed on their projections on the share as 100% of analysts covering Piedmont rate it a buy or strong buy right now, according to Refinitiv Eikon data.

The consensus price target on the company is a mammoth $101 per share, implying more than $56 per share of upside potential if they are correct.

The post Why is the Piedmont Lithium share price off to such a great start in August? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Piedmont Lithium Ltd right now?

Before you consider Piedmont Lithium Ltd, 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 Piedmont Lithium Ltd wasn’t one of them.

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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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