Day: 18 November 2022

Treasury Wine Estates Ltd (ASX: TWE) shares are among a rare bunch trading in the green for the year so far — up 8% in 2022 and outperforming the S&P/ASX 200 Index (ASX: XJO) by a significant margin.

The ASX 200 is down 5.7% over the year to date.

The Treasury Wine share price cracked a multi-year high of $13.70 on Tuesday. The last time Treasury Wine shares were at this level was before COVID-19 in January 2020.

Today, Treasury Wine shares are changing hands for $13.49, up 0.37% for the day so far.

What’s boosting the Treasury Wine share price of late?

With no price-sensitive news out of Treasury Wine this month, that multi-year high might have been due to Prime Minister Anthony Albanese’s meeting with Chinese President Xi Jinping at the G20 in Bali.

The meeting in itself was significant after a couple of years of the ‘silent treatment’ from China, not to mention the trade sanctions imposed on many of our goods, including wine.

The market might have read a potential thawing in our relationship with China as good for exporters if sanctions are lifted.

Treasury used to export a lot of its wines to China, but this has all but ceased due to the tariffs.

What do the experts think?

According to The Australian, Tribeca’s Jun Bei Liu thinks the outlook for Treasury Wine, with or without an improved relationship between Australia and China, “is just phenomenal”.

Liu said:

Putting aside China, I think the outlook for [Treasury] is just phenomenal. The company is going to grow over 20 per cent in the next couple of years, just through the reopening … so it has that tailwind to really drive growth.

Liu notes that tensions with China resulted in a big share price fallback in 2020, making Treasury Wine a value buy.

At around $9 per share at the time, she said investors weren’t paying for brand loyalty or future demand for premium labels.

Treasury survived the China freeze-out by successfully establishing new export markets for its wines.

The team at Goldman Sachs are also backing the Treasury Wine share price for growth.

As my Fool colleague James reported this week, Goldman thinks the company is back on track to deliver strong earnings growth in the coming years.

Goldman said:

With proven redirection of Penfolds China volumes as well as refocusing Treasury Americas on premium/luxury, TWE is now re-entering a growth phase with a more diverse and defensive business.

We have increased our FY23-25e sales and NPAT by 1%-5% and 5%-13% and now expect the company to deliver ~16% NPAT 2022-25e CAGR.

The company is trading at a 12m forward P/E of 22.6x, vs our TP implied P/E of 26.3x.

Goldman has a buy rating on Treasury Wine with a 12-month share price target of $14.70.

The post Outlook for Treasury Wine shares ‘is just phenomenal’: expert appeared first on The Motley Fool Australia.

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More reading

• Why has the Treasury Wine share price jumped 5% in a week?
• Why did the Treasury Wine share price crack a new multi-year high on Tuesday?
• 3 ASX All Ords shares that racked up new 52-week highs this morning
• Brokers rate these blue chip ASX 200 shares as buys
• Morgans names 3 of the best ASX 200 shares to buy in November

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 positions in and has recommended Goldman Sachs. The Motley Fool Australia has recommended Treasury Wine Estates 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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The Coronado Global Resources Inc (ASX: CRN) share price is having a difficult finish to the week.

At one stage today, the coal miner’s shares were down a sizeable 9% to $1.86.

This makes the Coronado share price the worst performer on the ASX 200 index on Friday.

Why is the Coronado share price the worst performer on the ASX 200?

The good news for shareholders is that today’s decline has nothing to do with the coal price.

In fact, the NYMEX coal price rose overnight, leading to fellow coal miners New Hope Corporation Limited (ASX: NHC) and Whitehaven Coal Ltd (ASX: WHC) outperforming the ASX 200 index this afternoon.

So, why is the Coronado share price taking a tumble today?

This weakness has been driven by the coal miner’s shares trading ex-dividend this morning for its latest dividend.

When a company’s shares trade ex-dividend, it means that the rights to an upcoming dividend payment stay with the seller and don’t transfer to new buyers. As a result, a share will generally drop in line with the dividend to reflect this.

The Coronado dividend

At the end of last month, the company released its third quarter update and revealed that its year to date revenue was up 107.8% over the prior corresponding period to US$2,854 million.

This underpinned bumper cash generation and allowed the Coronado board to declare a special dividend of approximately 13.4 US cents per share. At current exchange rates, this represents a dividend of approximately 20 Australian cents per share, which equated to a 9.8% dividend yield based on yesterday’s close price.

So, if you take this 20 cents per share dividend out of the equation, the Coronado share price would actually be trading higher today.

Eligible shareholders can now look forward to receiving this special dividend next month on 12 December.

The post Why is this ASX 200 coal share crashing 9% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Dig this! Look how many of the top-performing ASX 200 shares today are miners
• Here are the top 10 ASX 200 shares today
• Here are the 3 most traded ASX 200 shares on Monday
• 4 ASX 200 shares trading ex-dividend next week

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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There are a number of S&P/ASX 200 Index (ASX: XJO) healthcare shares that we can pick from. CSL Limited (ASX: CSL) shares may be one of the most recognised companies on the ASX. But, Sonic Healthcare Limited (ASX: SHL) shares could be an even better choice.

Sonic Healthcare is not exactly a small-cap ASX share. According to the ASX, it has a market capitalisation of close to $16 billion.

The ASX 200 healthcare share describes itself as an “internationally renowned healthcare provider with specialist operations in laboratory medicine and pathology, radiology, general practice medicine and corporate medical services”.

Its main source of earnings comes from pathology. Sonic employs more than 1,800 pathologists and radiologists, and more than 14,000 medical scientists, radiographers, sonographers, technicians, and nurses.

Sonic Healthcare has operations in countries including Australia, New Zealand, the USA, Germany, and other European countries.

Expert sees an opportunity with this ASX 200 healthcare share

According to reporting by the Australian Financial Review, the broker RBC Capital Markets has increased its price target on Sonic shares to $43, up from $42, thanks to a positive trading update. That implies a possible rise of around more than 30% over the next 12 months.

That trading update showed two different sets of comparisons, which enabled investors to see how the company was trading.

Total revenue for the four months to October 2022 was $2.73 billion. This was down 11.7% year over year, but up 20.9% compared to the four months to October 2019 (pre-COVID times).

COVID testing didn’t exist in October 2019, but in the four months to October 2022, Sonic Healthcare generated $280 million of COVID testing revenue. That’s despite lockdowns being a thing of the past in the countries that it operates in. However, COVID testing revenue was 64.8% lower than in the four months to October 2021.

Sonic’s base business revenue was $2.45 billion in the four months to October 2022. This was a 6.7% increase year over year and an 8.5% increase compared to the four months to October 2019.

The numbers were more pronounced with operating profit, which Sonic explained was due to the fact that COVID testing – which saw a year-over-year decrease – utilises existing Sonic infrastructure, meaning it generated a higher profit on that revenue. Lower COVID testing meant considerably lower profitably. Fee revenue for each COVID test has also reduced.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the four months to October 2022 came to $621 million. This was a 37.3% decrease year over year, but a 32.7% increase compared to the four months to October 2019.

Expert commentary

The broker RBC Capital Markets said, according to the AFR:

Sonic Healthcare’s trading update for the 4 months to October 22 revealed the base business grew 6.7% (performing better than we expected) and is 7.8% higher than pre-pandemic levels.

However, the company’s margins compressed more than we anticipated. While we have had to cut our FY23 forecasts, we now expect Sonic Healthcare’s earnings to inflect in FY24 and those investors who have been waiting for positive earnings momentum can begin to re-evaluate the stock again.

Sonic Healthcare share price snapshot

While the ASX 200 healthcare share has dropped around 5% in the last week, it’s up approximately 3% over the past month.

The post Considering CSL shares? Broker says this other ASX 200 healthcare share has 30% upside appeared first on The Motley Fool Australia.

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More reading

• 3 key things I look for when buying ASX dividend shares
• Is a weak US dollar good for ASX 200 mining shares?
• 5 things to watch on the ASX 200 on Friday
• Is it finally safe to buy ASX shares now?
• What dragged on the Santos share price today?

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 CSL Ltd. The Motley Fool Australia has recommended Sonic Healthcare 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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For Australian investors, there are literally hundreds of shares on the ASX to choose from. Finding the right ones can be an understandably daunting task. And buying them at the right price can be even harder. So who better to turn to for advice than the legendary investor Warren Buffett.

Buffett is the CEO of his investing conglomerate Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B). This company has run laps around the returns of the broader markets for decades now.

So today, let’s look at some pieces of Buffett wisdom that can help us create a ‘best ASX shares to buy now’ list. Our Foolish colleagues over in the US have a great list of Buffett quotes that we can draw from for inspiration.

So one of Buffett’s most important quotes is “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”.

Buffett often talks about the ‘moats’ that his favourite companies possess. Just like the medieval fortification, an economic moat helps protect a company from usurpers. This moat can come in the form of pricing dominance, a strong brand, or the cost of switching to a rival product.

What does Warren Buffett look for in a ‘best share?

We can see this playing out in some of Buffett’s top holdings. Companies like the Coca-Cola Company, Apple and American Express have some of the strongest and most well-known brands in the world.

So our best ASX to buy now list should have companies that display this kind of resilience.

Think of the brand recognition of the Commonwealth Bank of Australia (ASX: CBA) across the country. Or the pricing power that Woolworths Group Ltd (ASX: WOW) has in selling food and household essentials. Or perhaps the cost of switching from Xero Limited (ASX: XRO)’s tax software to a rival.

All of these companies could well have the moats that it takes to be a ‘wonderful company’ in Buffett’s eyes.

But just finding a quality company is only half the battle. Buffett is also famous for waiting for the exact right moment to pounce.

As he once said, “A too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favourable business developments”.

Buffett loves to buy up shares when everyone else is selling, like say in a market crash. One of his most well-known sentiments is to be “greedy when others are fearful”.

He also says that these moments to be greedy are opportunities, but that “opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”.

So remember this advice next time there is a market downturn. It may be the best chance you ever get to purchase your favourite quality ASX shares on the buy list.

The post I’d use the Warren Buffett method to create a ‘best ASX shares to buy now’ list appeared first on The Motley Fool Australia.

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More reading

• 3 key things I look for when buying ASX dividend shares
• 5 of the craziest things making news on the ASX this week
• Which stocks are in the Vanguard Australian Shares Index ETF (VAS) right now?
• How to have your ASX 200 dividend cake and eat it too
• Why Goldman Sachs rates these blue chip ASX 200 shares as buys

American Express is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in American Express, Apple, Berkshire Hathaway (B shares), and Coca-Cola. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Berkshire Hathaway (B shares), and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). 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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It’s proving to be a rough day for All Ordinaries Index (ASX: XAO) share Cettire Ltd (ASX: CTT) after its founder and CEO was confirmed to have offloaded a massive chunk of the company’s stock.

Right now, the Cettire share price is down 11.9%, trading at $1.48. For comparison, the All Ords index is up 0.32% at the time of writing.

So, why has the company’s largest shareholder sold down their stake? Keep reading to find out.

All Ords stock Cettire falls as boss offloads 41 million shares

Cettire founder and CEO Dean Mintz has sold a near-$60 million stake in the online luxury goods retailer in a move that’s decimating its share price today.

The approximate 41 million share stake was offloaded in an underwritten block trade. The parcel represents 10.8% of the company’s issued shares.

Mintz pocketed $1.46 per share from the sale – marking a 13% discount on the company’s previous close. That leaves the total sale valued at around $59.8 million.

Despite parting ways with such a huge chunk of the All Ords constituent’s shares, the company’s boss still boasts a healthy 45.9% hold.

Commenting on the sale, Mintz said:

Cettire is in a very strong position with excellent momentum as demonstrated in the company’s trading update provided at the [annual general meeting] yesterday.

The share sale represents a relatively small portion of my shareholding in the company and enables me greater diversification, whilst increasing the free float and scope for Cettire shares to achieve inclusion in major indices over time.

Investors needn’t worry about any more selling for a little while. Mintz will escrow the rest of his Cettire shares until the company posts its half-year earnings in February.

The luxury retailer debuted on the ASX in December 2020. It offered shares for 50 cents apiece under its initial public offering (IPO).

The retailer announced its unaudited October sales had increased 82% year-on-year to reach $34.8 million yesterday. Its unaudited revenue also lifted 71% to $45.9 million, while its average order value jumped 13% to $839.

The post Guess which All Ords insider is selling a whopping $60m worth of their company’s shares appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries shares having a cracker session on Thursday
• Why A2 Milk, Cettire, Lottery Corp, and Weebit Nano shares are rising
• Why Aroa Biosurgery, Cettire, Estia Health, and Weebit Nano shares are rising
• Back in fashion? This ASX All Ords share is up over 130% so far in October

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 recommended Cettire 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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It may not be long until the inaugural Pilbara Minerals Ltd (ASX: PLS) dividend is paid to shareholders.

That’s because earlier this week, the lithium miner unveiled its capital management framework.

According to the framework, with Pilbara Minerals generating significant free cash flow from its operations, it is planning to pay out 20% to 30% of its free cash flow to shareholders from FY 2023.

Management notes that this leaves it with enough free cash flow to maintain safe and reliable operations, as well as support growth and productivity initiatives.

The Pilbara Minerals dividend forecast

In light of the announcement of the company’s capital management framework, investors may now be wondering what to expect from the Pilbara Minerals dividend in the coming years.

The good news for shareholders, is that the team at Macquarie is expecting some very attractive dividend payments from the company.

According to a note from this week, in FY 2023, the broker is forecasting a dividend of 34 cents per share. Based on the current Pilbara Minerals share price, this will mean a 7.2% dividend yield for investors.

Macquarie is expecting its dividend to remain at 34 cents per share in FY 2024, providing investors with another 7.2% yield.

Whereas in FY 2025, its analysts have forecast an 8.8% increase in its dividend to 37 cents per share. This will mean a 7.8% dividend yield for investors that year based on its current share price.

Should you invest?

As well as forecasting generous dividend yields, Macquarie sees plenty of upside for the Pilbara Minerals share price.

Its analysts currently have an outperform rating and $7.70 price target on the company’s shares. This implies potential upside of 63% for investors over the next 12 months.

The post Here is the Pilbara Minerals dividend forecast through to 2025 appeared first on The Motley Fool Australia.

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More reading

• 5 of the craziest things making news on the ASX this week
• Pilbara Minerals share price on watch as chair describes maiden dividend as ‘great source of pride’
• IGO shares dip as investors hear of ‘a pipeline of growth opportunities’ at AGM
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• ASX lithium shareholders rejoice! Expert tips lithium price to hit $100K

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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The Whitehaven Coal Ltd (ASX: WHC) share price has been on fire over the past year.

Amid record prices for thermal coal (used to generate electricity), Whitehaven shares have soared an eye-popping 249% in 12 months.

Meaning a $1,000 investment this time last year would be worth some $3,500 today. And that doesn’t take dividends into account. Even at the current share price, Whitehaven pays a trailing yield of 5.5%, fully franked.

But with those kinds of gains already in the bag for the Whitehaven share price, is the S&P/ASX 200 Index (ASX: XJO) miner still cheap or is it now expensive?

Whitehaven share price: ‘incredibly expensive’ or ‘ridiculously cheap’?

For some greater insight into that, we defer to ClearLife Capital portfolio manager David Moberley and QVG Capital portfolio manager Josh Clark (courtesy of Livewire).

Clark said that for QVG, Whitehaven is a hold at the current share price, saying the miner “has some pretty extreme opposing scenarios”.

According to Clark:

You’ve got to make note of the fact that the thermal coal price has moved from trading in a band of maybe US$50 to US$100, and it’s now many, many multiples of that. So it looks incredibly expensive on long-term forecasts or longer-term historic prices. And then it looks ridiculously cheap on spot thermal coal prices.

Coal prices to eventually normalise

Clark pointed out that thermal coal prices will inevitably come back to earth, saying Europe’s energy crisis and the war in Ukraine have sent thermal coal prices higher.

“Inventories are starting to look a bit better,” he said. “Those phenomena are not permanent. So the price will move lower at some point.”

Clark continued:

So the game you’re trying to play is to get paid back on a really cheap multiple before that commodity price starts moving down. I’ve never seen a commodity stock hang in there and not go down when the commodity price is going down, regardless of what the numbers say. And even though they’re quite extreme scenarios, I think they’re fairly balanced.

Moberley said that after the run up in the Whitehaven share price, it’s a sell for ClearLife.

He said that with incredibly strong coal prices:

The company’s absolutely spewing out serious amounts of cash, so they’re currently undertaking a buyback of up to 25% of their shares. But I think that’s more than captured in the share price at this point. And while the commodity price has been strong, there are some signs of that softening at the moment.

So, is the Whitehaven share price incredibly expensive or ridiculously cheap?

It would appear maybe both, depending on your investment horizon.

The post Whitehaven share price: ‘incredibly expensive’ or ‘ridiculously cheap’? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Dig this! Look how many of the top-performing ASX 200 shares today are miners
• Why Arafura, Nufarm, Pilbara Minerals, and Whitehaven Coal are charging higher
• Why is the Whitehaven share price whizzing 7% higher today?
• Top ASX dividend shares to buy in November 2022

Motley Fool contributor Bernd Struben 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 tech sector is the worst-performing of the ASX share market so far in 2022. For some, the temptation might be to go on a spending spree. However, not all ASX tech shares are equal in this environment.

I’m generally an optimist — though, I think it is times like now that demand a more measured approach to the market. Don’t get me wrong — I believe there are tremendous opportunities right now… more on that later.

Even so, there’s a possibility that some of the companies we know today may not be around several years from now. The best-case scenario is a handful of listed names use their capital inefficiently and destroy shareholder value.

As the cost of capital increases and consumer demand wanes, assessing the fundamentals of an investment is more critical than ever.

Below are three ASX tech shares I believe could be on unstable foundations.

Is it risky business?

I want to say upfront that these ASX tech shares could prove to be more robust than first thought.

There are multiple levers that can be pulled by their management teams to better position the company, including raising capital, renegotiating loan facilities, etc. Nonetheless, this is a snapshot of three companies that hold objectively poor fundamentals at present.

The first mention goes to the software-defined network provider, Megaport Ltd (ASX: MP1). Although the ASX tech share has been able to grow its revenue by 39% year-on-year, it remains severely unprofitable. For the 12 months ending 30 June 2022, Megaport posted a loss of $48.5 million from $109 million in revenue.

In addition, the company’s balance sheet has witnessed a significant decrease in cash — $136.7 million to $83 million — in FY22. At the same time, Megaport’s debt has nearly doubled.

Next on the list is the former high-flying installment payment platform, Sezzle Inc (ASX: SZL). The main concern I hold with Sezzle is its debt-heavy balance sheet. While the company can attest to holding US$57.9 million in cash equivalents, this is offset by US$53.9 million in debt — bringing net cash down to around US$4 million.

Holding a lot of consumer debt heading into potentially harder economic conditions poses a risk to Sezzle. Higher instances of bad debts could add further financial strain to Sezzle’s already precarious position.

Likewise, Openpay Group Ltd (ASX: OPY) is another buy now, pay later provider that appears to be in rough shape. Not only have losses continued to widen over the years — now at $82.5 million — the company’s balance sheet is in a net debt position, otherwise known as negative equity.

I prefer this ASX tech share to buy

If I had to pick one ASX tech share that has the best chance of staying afloat in turbulent times, it would likely be Objective Corporation Limited (ASX: OCL). The fundamentals of this 35-year-old business are hard to ignore.

Notably, Objective Corp is wildly profitable — parading a net profit margin of 18% in FY22. This compounding money printer has enabled the company to build a fortress-like balance sheet over the years. As a result, it holds no debt and $44 million in cash equivalents.

I believe this company is especially well suited to difficult times due to its substantial government customer base. Providing a range of essential systems spanning record management, licensing compliance, and more, Objective’s revenue is relatively defensive.

At a price-to-earnings (P/E) ratio of 76 times, Objective might seem priced at a premium. However, as Warren Buffett has said, “Price is what you pay. Value is what you get.”

A company of this calibre, in my opinion, represents value at its current price.

The post 3 ASX tech shares that risk going up in flames, and 1 sturdy stock I’d buy instead appeared first on The Motley Fool Australia.

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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 MEGAPORT FPO and Objective Corporation Limited. The Motley Fool Australia has recommended MEGAPORT FPO. 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 Sandfire Resources Ltd (ASX: SFR) share price isn’t going anywhere today as the company undergoes a $200 million capital raise.

The raised cash will go towards strengthening the S&P/ASX 200 Index (ASX: XJO) copper miner’s balance sheet, paying down debt, and funding exploration activities.

The Sandfire share price last traded at $4.79.

Keep reading to find out more about the raise and how shareholders can get involved.

Sandfire stock frozen amid $200m capital raise

The Sandfire share price is on ice on Friday as the company launches a $200 million entitlement offer.

It will see new shares in the copper miner on offer for $4.30 apiece – representing a 10.2% discount to its previous close. Investors will be able to subscribe to one new share for every 8.8 shares already held.

The offer will comprise an institutional component and a retail component. The stock will return to trade on news of the outcome of the former component – expected to raise $150 million.

Retail investors can get in on the action when the latter offer opens next Friday.

Of the cash raised, $50 million is earmarked to pay down debt. Another $90 million will go towards Sandfire’s balance sheet. The final $60 million will help fund its growth and exploration projects.

The company expects to have a US$324 million pro-forma, unaudited net debt position following the raise. On announcing the offer, it told the ASX:

Sandfire has successfully transitioned itself into a significant, diversified, globally relevant multi-asset copper miner, delivering growth and sustainable copper production from its portfolio of international assets.

In addition to enhancing financial flexibility, the entitlement offer will provide additional working capital at Sandfire’s existing operations, where the company is focused on continued operating results at MATSA and delivering the Motheo Copper Mine in Botswana, scheduled to begin production in the June [financial year 2023] quarter.

Sandfire share price snapshot

The Sandfire share price has suffered amid 2022’s broader downturn.

The stock has dumped 29% since the start of the year. It’s also 21% lower than it was this time last year.

For comparison, the ASX 200 has dumped 6% year to date and 3% over the last 12 months.

The post Why is the Sandfire share price on ice today? appeared first on The Motley Fool Australia.

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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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Core Lithium Ltd (ASX: CXO) shares have been in the news a lot lately. This ASX 200 lithium stock is one of the wildest shares on the ASX 200.

Just this week, Core Lithium rose almost 12% on Monday, only to drop 16% on Tuesday, 5.4% on Wednesday and another 4.7% yesterday. Today, the company has shed yet another 2% and is going for $1.39 a share.

But even so, this company remains up by 9% over the past month, and a whopping 120% year to date. Talk about a rollercoaster.

But let’s talk about some news that we got out of the ASX on Thursday. Did the chair of Core Lithium really just offload $1 million worth of shares in the company?

Well, sort of.

Core Lithium chair nets a cool $1 million from share sale

According to an ASX release, Gregory English is the non-executive chair of Core Lithium. English (through a company called GDE Exploration) has just exercised 2 million options of Core Lithium, for a price of 6 cents each. This gives him 2 million shares bought at that price, costing English $120,000.

English has then gone on to sell 600,000 of those 2 million shares at the market price, netting him a cool $1.02 million. So it’s been a pretty decent payday for the chair.

It’s not like English is cashing out of the company, though. According to the ASX filing, he still owns 40,000 shares directly, and another 7.6 million shares and 3 million options indirectly.

However, it is worth noting that Core Lithium directors, in general, don’t seem to have a large appetite for their own company’s shares.

No ASX filings from recent years show any on-market purchases of shares from any director. That doesn’t include any performance rights though, from which many directors have benefitted.

Still, this has been an incredible ASX growth story. Two years ago, Core Lithium was just a 5-cent share. Investors have enjoyed a gain of 2,650% since November 2020 on today’s pricing.

The post Did the Core Lithium chair really just offload $1 million of his shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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