Day: 28 November 2022

The Evolution Mining Ltd (ASX: EVN) share price has been on a tear over the past month, leaping 30%.

It’s been a solid month for ASX gold stocks overall, with the S&P/ASX All Ordinaries Gold Index (ASX: XGD) gaining 16.5% compared to the 6.5% gain posted by the S&P/ASX 200 Index (ASX: XJO).

Still, the Evolution Mining share price increase leaves those gains far behind.

But that doesn’t mean the gold miner can’t keep the good times rolling.

Why the Evolution Mining share price can keep climbing

Investment advisor at Seneca Financial Solutions Arthur Garipoli is decidedly bullish on Evolution Mining.

According to Garipoli (courtesy of The Bull), “Potentially slowing interest rate increases and a peaking US dollar should support the gold price, so we believe there’s good value in the gold sector.”

Garipoli pointed to an improving outlook at the miner’s projects, which should offer support for the Evolution Mining share price.

“Metrics at EVN projects, including the challenging Red Lake, are improving. We believe guidance is conservative,” he said. “We like the company’s outlook and see potential upside from here.”

On its quarterly report for the three months ending 30 September, Evolution maintained its production and all in sustaining cost (AISC) guidance for FY23 at approximately 720,000 ounces at a cost of around AU$1,240 (US$870) per ounce.

Evolution said its Red Lake transformation is continuing with the first stope ore mined from the upper Campbell mine having the highest-grade Ore Reserve at Red Lake. The gold grade processed at the project for the reported quarter increased by 14%.

How has the ASX 200 gold miner performed longer-term?

Like most ASX gold stocks, the Evolution Mining share price has fallen alongside gold prices in 2022, leaving the miner’s shares down 34% year to date.

But if Garipoli has it right, shareholders could see this past month’s positive trend continue into 2023.

The post Up 30% in a month, why the Evolution Mining share price can keep climbing: expert appeared first on The Motley Fool Australia.

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More reading

• Which ASX 200 bank share stands to benefit the most from ‘good borrowers’?
• Telstra share price ‘hasn’t fully captured the upside in value’: fundie
• Rio Tinto share price dips amid ‘important agreement’
• I’d drip-feed $500 a month into cheap ASX shares in this share market rally
• 3 ASX 200 shares that announced supersized dividends in November

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. At the time of writing, the benchmark index is down 0.4% to 7,230.8 points.

Four ASX shares that are not letting that hold them back today are listed below. Here’s why they are rising:

Atlas Arteria Group (ASX: ALX)

The Atlas Arteria share price is up 1% to $7.11. Investors have been buying this toll road operator’s shares after it announced the receipt of the approvals required to acquire a 66.67% majority interest in Skyway Concession Company. It is the concessionaire of the Chicago Skyway.

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway share price is up 1.5% to $2.79. This follows the release of the waste management company’s strategy update. Management expects its strategy to create a competitive advantage and leverage digitisation, as well as support margin expansion, organic growth and reduce customer churn.  In addition, the company expects to realise significant efficiency gains through business simplification.

Nick Scali Limited (ASX: NCK)

The Nick Scali share price is up 2% to $11.20. Last week, analysts at Citi responded to the furniture retailer’s annual general meeting update by retaining their buy rating and lifting their price target to $15.83. Citi notes that Nick Scali is performing notably better in FY 2023 than it was expecting. Macquarie is also positive and retained its outperform rating with an improved price target of $12.50.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is up 9% to $1.72. This also appears to have been driven by a positive reaction to an annual general meeting update by a broker. At the end of last week, Morgans retained its add rating with an improved price target of $2.05. It commented: “[W]e believe recent updates are now pointing to improved business momentum and importantly a greater focus on driving profitability. Potential corporate action also remains an area of possible upside.”

The post Why Atlas Arteria, Cleanaway, Nick Scali, and Tyro shares are pushing higher appeared first on The Motley Fool Australia.

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More reading

• Why is the Tyro share price surging 9% on Monday?
• Why I think Warren Buffett would love this ASX dividend share
• Why Nanosonics, Nick Scali, NRW, and Tyro shares are charging higher
• Why Kogan, Nick Scali, PointsBet, and Sayona Mining shares are pushing higher
• Why is this ASX 300 retail share soaring 13% today?

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 Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. 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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Were you looking forward to the expected return to trade of BWX Ltd (ASX: BWX) shares? Well, we have some bad news.

The company seemingly dashed hopes it will end its near-three-month trading halt tomorrow, despite flagging its return only last week.

The BWX share price has been frozen at 63 cents since late August as the company works to correct issues with its yet-to-be-released financial year 2022 (FY22) earnings report.

So, what’s the latest news from the natural skin and hair care company? Let’s take a look.

Hopes BWX shares might trade tomorrow dashed

It might be a sad day for fans of BWX shares. It appears the company is no longer expecting to exit the freezer this week, as previously forecast.

As it entered its current trading halt in August, BWX said it will likely return to trade on the release of its audited FY22 earnings. More recently, it said the results were expected to drop today and its ASX suspension would likely lift tomorrow.

But today only brought disappointment for those hoping to trade BWX shares.

Instead of flicking through the company’s long-awaited accounts, the market heard the BWX board won’t release the report until it gets closer to procuring additional debt funding.

Though, it did note key parts of the audit of its FY22 financial statements have been finalised, including revenue recognition issues for FY21 and the first half of FY22, as well as the impairment of intangible assets.

The company said it has engaged strategic advisors to help procure extra debt funding. The funding will allow it to push ahead with its restructuring plans, address its inventory rundown, and continue selling its non-core assets. Today’s release stated:

While this process is well advanced, it will take time to evaluate the offers received. Until that process is further advanced and certainty of funding is secured, the board is unable to finalise the FY22 audited financial statements. The company confirms that its principal bank lender remains supportive.

Additionally, BWX revealed its chief financial officer Efee Peell has resigned, effective today. Peell is stepping down for health reasons following an extended period of leave.

The company has begun a search for her replacement. Until one is found, Birol Akdogan has stepped up to the role.

Perhaps disappointingly, there was no word of when the market might now expect the stock to return to trade. No doubt all eyes will remain on BWX shares until another update is released.

The post What on earth is going on with BWX shares? 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
• ASX All Ords share BWX tipped to start trading next week after 3-month trading halt
• Another ASX All Ords company has just been hit with a cyberattack. Here’s the lowdown

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 BWX 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 Core Lithium Ltd (ASX: CXO) share price is having a tough day on the market today.

Core Lithium shares are down 3.75% at the time of writing and are currently fetching $1.285. For perspective, the S&P/ASX 200 Resources Index (ASX: XJR) is down 1.36% today.

So why is the Core Lithium share price struggling today?

Why are Core Lithium shares falling.

Core Lithium may be down today, but it is not the only ASX lithium share in the red. The Liontown Resources Ltd (ASX: LTR) share price is down 6.75% at the time of writing, while Lake Resources N.L. (ASX: LKE) shares are 4.57% lower. IGO Ltd (ASX: IGO) shares are also down 3.89%, while Sayona Mining Ltd (ASX: SYA) shares are falling 2.38%.

News out of China could be impacting ASX lithium shares on Monday. China is a major electric vehicle (EV) producer and there are concerns lithium prices could pull back amid a fall in demand, as my Foolish colleague James reported.

Further, the South China Morning Post reported yesterday that Chinese EV battery producers will exceed domestic electric car makers’ demands threefold by 2025. This may be further adding to concerns about falling lithium prices.

Lithium carbonate prices in China fell 0.53% to 562,500 yuan on Friday.

Meanwhile, unprecedented protests over COVID-19 restrictions have erupted in China over recent days amid the nation’s COVID-zero policy.

Also, lithium shares in the United States struggled on Friday. Sociedad Quimica y Minera de Chile (NYSE: SQM) lost 6.8%, while Livent Corp (NYSE: LTHM) shares fell a massive 8.81%.

The Core Lithium share price also fell 5.6% on the ASX on Friday amid fears COVID-19 restrictions in China could impact demand for lithium.

Share price snapshot

The Core Lithium share price has soared 138% in the past year, while it has climbed 118% in the year to date.

For perspective, the Resources Index has gained nearly 20% in the past year.

Core Lithium has a market capitalisation of more than $2.4 billion based on the current share price.

The post Why is the Core Lithium share price in the red today? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX lithium shares getting slammed again on Monday?
• Why is the Liontown share price sinking 9% on Monday?
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• Here are the 3 most heavily traded ASX 200 shares on Friday

Motley Fool contributor Monica O’Shea 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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On paper, Wesfarmers Ltd (ASX: WES) shares look like one of the most diversified companies on the ASX.

Wesfarmers is about as close to ASX royalty as you can get. This company was founded way back in 1914 and today owns some of the country’s most well-known and beloved retail outfits.

Yes, Wesfarmers is the name behind Bunnings, Kmart, OfficeWorks and Target. But it gets a whole lot deeper than that.

In addition to these names, Wesfarmers also owns Beaumont Tiles, TKD, Covalent Lithium, Kleenheat Gas, Australian Vinyls, Workwear Group, catch.com.au, Wesfarmers Chemicals, Energy And Fertilisers, and its most recent acquisition, the Priceline pharmacy chain.

On top of that, this company also retains stakes in a few other ASX-listed businesses, including Coles Group Ltd (ASX: COL) and BWP Trust (ASX: BWP).

There’s more, but we’ll leave these lists at that.

So it goes without saying that Wesfarmers is without a doubt one of the most diversified blue-chip shares on the ASX 200 Index, right? And a buy for portfolio diversification?

Are Wesfarmers shares a buy for ASX diversification?

Well… it’s complicated.

Yes, Wesfarmers does have many fingers in many pies. But not all of these pies are the same size.

To illustrate, let’s look at a recent interview that Blake Henricks of Firetrail Investment did with Livewire.

Henricks named Wesfarmers as a sell, partly due to diversification concerns. Here’s some of what he said:

It’s a sell. Everyone loves Wesfarmers, and everyone knows about it, but two-thirds of the value sits within Bunnings. Now, Bunnings has done a great job through this huge boom…

What I’m concerned about is that if I’m looking for a defensive stock, I don’t invest in a housing-related one and I don’t invest in one with Kmart, Target and Lithium as well. So 20 times PE, it’s not too bad, but I think there’s downside risk to earnings and therefore as a defensive, it’s a sell.

Knowing that two-thirds of a Wesfarmers share represents a share in Bunnings alone, Wesfarmers doesn’t seem like the diversification play that one might initially assume. But that doesn’t mean all expert investors reckon it’s worth selling.

The upside…

As my Fool colleague James covered last week, ASX broker Morgans remains upbeat on Wesfarmers shares. This broker has an add rating on the company right now, with a 12-month share price target of $55.60.

Morgans cites Wesfarmers’ “quality retail portfolio” and “highly regarded management team” as reasons for its optimism. It also reckons Wesfarmers will be able to grow its dividends across FY2023 and into FY2024 as well.

So only time will tell which ASX expert is right on their Wesfarmers call. But we can conclude that Wesfarmers shares aren’t the silver bullet of portfolio diversification that their range of interests suggests.

The post Are Wesfarmers shares a buy for portfolio diversification? appeared first on The Motley Fool Australia.

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More reading

• Almost ready to retire? How to generate $70k per year of passive income from ASX dividend shares
• Could buying Wesfarmers shares give you $10,000 in annual dividend income by retirement?
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• I’d invest $100 a week in cheap ASX dividend shares for passive income in retirement

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. 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 COLESGROUP DEF SET and Wesfarmers 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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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.

Don’t believe for one second that Warren Buffett doesn’t think about dividends. In his latest letter to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders, he mentioned that the company received $785 million in dividends from just one stock in 2021 (it was Apple).

Buffett’s recent buys for Berkshire’s portfolio also hints that dividends might have been on his mind. In the third quarter of 2022, he purchased eight stocks. Seven of them pay dividends. A few of them offer dividends that are quite attractive. Buffett just bought these three dividend stocks with yields of over 3%.

1. Paramount Global

Paramount Global (NASDAQ: PARA) stands out as Buffett’s only high-yield purchase in the third quarter. The media company’s dividend yield currently tops 5.1%. 

Buffett’s history with Paramount goes back to when the company was known as Viacom. He led Berkshire to open a position in Viacom in 2012. While the legendary investor later sold all of those shares, he apparently regained an interest in the stock in the first quarter of this year and has kept on buying.

Berkshire now owns 15% of Paramount Global’s outstanding class B shares. The stock hasn’t been a winner for Buffett so far, though, with a year-to-date decline of close to 40%. 

What does the multibillionaire investor like about Paramount (other than its dividend)? Its valuation probably ranks high on the list. The stock trades below 12.8 times expected earnings.

2. Jefferies Financial Group

Buffett has long been a fan of bank stocks. But he’s become less enamored of the financial services sector lately. That’s what makes Berkshire’s new position in Jefferies Financial Group (NYSE: JEF) somewhat surprising.

With a market cap of under $9 billion, Jefferies is much smaller than the other banks in Berkshire’s portfolio. Unlike those other bigger corporations, Jefferies focuses only on investment banking and doesn’t have a commercial banking unit. But it offers a dividend that rivals the big boys with a yield of more than 3.2%.

Jefferies’ stock has also outgained Berkshire’s other bank stocks so far this year. However, Buffett’s investment in the company played a key role in that outperformance.

Berkshire owns only a tiny position in Jefferies, though. That could indicate that Buffett and his team began buying in the latter part of the third quarter and are continuing to scoop up shares in the fourth quarter.

3. Chevron

It wasn’t surprising whatsoever that Buffett added to his position in Chevron (NYSE: CVX) in the third quarter. The oil and gas giant is Berkshire’s third-largest holding, including shares owned by its New England Asset Management subsidiary. 

Chevron’s dividend yield of 3.1% is lower than it’s been throughout much of the past 10 years. That’s not because the company has cut its dividend, though. Actually, Chevron is a Dividend Aristocrat with 35 consecutive years of dividend increases.

Instead, the company’s dividend yield is lower because its stock price has risen so much. Chevron stock has soared nearly 60% year to date. That follows a 39% gain in 2021.

Buffett seems to still think Chevron is attractively valued. Its shares trade at 11.2 times expected earnings. There’s a good chance that this stock — and its dividend — go even higher. 

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

The post Warren Buffett just bought these 3 dividend stocks with yields of over 3% appeared first on The Motley Fool Australia.

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More reading

• 74% of Warren Buffet’s portfolio is in these 5 stocks. Could this help guide which ASX shares to buy?
• Warren Buffett owns these 5 value stocks
• Warren Buffett doesn’t follow his own advice – and it’s made him richer
• Is it a Warren Buffett stock or not? 5 simple questions to ask yourself

Keith Speights has positions in Apple and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Berkshire Hathaway (B shares), and Jefferies Financial Group Inc. 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 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 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.

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

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The Tyro Payments Ltd (ASX: TYR) share price is starting the week in a very positive fashion.

In afternoon trade, the payments company’s shares are up 9% to $1.72.

Why is the Tyro share price jumping?

The Tyro share price is taking off today despite there being no news out of the company.

Though, it is worth noting that Tyro was the subject of a bullish broker note out of Morgans at the end of last week. This could be giving its shares a lift on Monday.

According to the note, the broker has retained its add rating with an improved price target of $2.05.

Even after today’s gain, this still implies potential upside of 19% for investors over the next 12 months.

What did the broker say?

Morgans was pleased with Tyro’s update at its annual general meeting last week.

It highlights that management is now guiding to EBITDA at the high end of its target range of $28 million to $34 million in FY 2023. This was ahead of the broker’s expectations, which has led to its analysts upgrading their estimates accordingly. It commented:

It continues to be a positive start for new TYR CEO John David, with improving operating momentum driving two earning upgrades in a row. For FY23, we forecast TYR to do an EBITDA margin (EBITDA to gross profit or net revenue) of ~18.5%, well up on the ~7% level achieved in the pcp. Post this improvement, we still see a good opportunity for TYR to drive significant further efficiencies, noting peers like Worldline and Adyen are producing comparable margins of ~30% and 59% respectively.

In light of this, the broker believes the weakness in the Tyro share price in 2022 has created a buying opportunity for investors. It commented:

TYR sold off heavily in the first half of 2022 affected by the broad pull back in technology stocks and overall concerns on its earnings trajectory. However, we believe recent updates are now pointing to improved business momentum and importantly a greater focus on driving profitability. Potential corporate action also remains an area of possible upside.

The post Why is the Tyro share price surging 9% on Monday? appeared first on The Motley Fool Australia.

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More reading

• Why Nanosonics, Nick Scali, NRW, and Tyro shares are charging higher

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 Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. 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) bank shares are operating in rapidly changing times. COVID-19 was an eventful time and now rapidly rising interest rates are altering the banking landscape.

There are plenty of ASX 200 bank shares for investors to keep an eye on, including the biggest: Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

But, there are also smaller ones such as Bank of Queensland Limited (ASX: BOQ) and Bendigo and Adelaide Bank Ltd (ASX: BEN).

Higher interest rates can have the effect of boosting profitability for banks because the loan rate is being bumped up quickly while the interest rate for savers is rising at a slower pace. This means that the net interest margin (NIM) is now improved compared to the start of the year.

But how are borrowers going to cope with the higher interest rate?

Good borrowers in focus

According to reporting by The Australian, experts are warning that a “normalisation of bad debts is coming” and that the roll-off of tens of thousands of fixed-interest loans could put pressure on the Australian home loan market.

S&P Global Ratings shows that “prime” home loans were “steady” in September, though arrears for “non-conforming” loans rose.

In August, the arrears of non-conforming loans compared to the total loan amount was 2.07%. But, in September, this rose to 2.24%.

According to the reporting, the amount of non-conforming loans almost doubled to approximately $16 billion in September 2022.

The Australian reported that S&P Global Ratings is expecting a rise in arrears as the economy slows. There is a forecast of higher arrears in January and February after the spending for Christmas.

The newspaper noted some commentary from S&P Global Ratings analyst Erin Kitson that suggested some ASX 200 bank shares are going to lend to “safer” borrowers to preserve market share without hurting the reliability of their loan books.

Chief investment officer from Climate Capital Will Riggall suggested that the three months to September 2022 showed it was being more selective in how it took on risk.

However, this is allowing banks like Westpac and NAB to win those borrowers.

Are CBA shares good value?

Riggall suggests that NAB shares and Westpac shares are better ASX 200 bank share picks than Commonwealth Bank. This is  because of CBA’s “high price” and the success of the other two banks at “executing growth and transformation strategies.”

How expensive are CBA shares? According to CMC Markets, the CBA share price is valued at around 18 times FY23’s estimated earnings.

The post Which ASX 200 bank share stands to benefit the most from ‘good borrowers’? appeared first on The Motley Fool Australia.

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More reading

• Telstra share price ‘hasn’t fully captured the upside in value’: fundie
• Rio Tinto share price dips amid ‘important agreement’
• I’d drip-feed $500 a month into cheap ASX shares in this share market rally
• 3 ASX 200 shares that announced supersized dividends in November
• These ASX dividend shares have 4%+ forecast yields

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 Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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ASX lithium shares are getting hammered again on Monday after also struggling on Friday.

Lithium shares in the red today include:

• Core Lithium Ltd (ASX: CXO), sliding 3.37%
• Liontown Resources Ltd (ASX: LTR), down 6%
• IGO Ltd (ASX: IGO), down 2.59%
• Lake Resources N.L. (ASX: LKE), falling 4.31%
• Allkem Ltd (ASX: AKE), sliding 0.08%

Let’s take a look at what could be impacting ASX lithium shares today.

What is going on?

ASX lithium shares may be falling amid concerns about the lithium price and some analyst notes.

The lithium carbonate price in China fell 0.53% to 562,500 yuan on Friday. As my Foolish colleague James reported this morning, Goldman Sachs and Credit Suisse have recently put out bearish notes amid concerns about falling demand from China.

Lithium shares in the United States also had a horror day on Friday. For example, the Livent Corp (NYSE: LTHM) share price descended 8.81% while Sociedad Quimica y Minera de Chile (NYSE: SQM) lost 6.8%.

Meanwhile, Morgan Stanley has revealed its institutional desk could be looking at selling lithium shares. This follows the addition of Pilbara and IGO to the MSCI index on Wednesday. Analysts, quoted by The Australian, said:

There is no doubt that lithium is a very crowded trade heaved higher by retail exposure, but a side effect of this is IGO, PLS replacing DMP/EVN in an MSCI index on Wednesday.

Index funds and traders front running them generally buy in the lead up, then sell after the inclusion, but given the incredible performance in lithium, our insto desk is looking for selling, and the catalyst may come from the Chinese protests.

In other news, South China Morning Post reported yesterday that Chinese EV battery producers will exceed domestic electric-car makers’ demand threefold by 2025.

What else is happening?

The Pilbara Minerals Ltd (ASX: PLS) share price is outperforming other ASX lithium shares today amid joint venture news. Pilbara shares are up 0.11% at the time of writing. The lithium company has executed a joint venture agreement with Calix Ltd (ASX: CXL) to develop a mid-stream demonstration plant.

Commenting on this news, Managing director and CEO Dale Henderson said:

It’s a great privilege to enter this JV partnership with Calix. The Mid-stream project has the potential to be a game changer for our industry.

If successful, we will be able to deliver a superior chemical intermediary product to market compared to spodumene concentrate.

The post Why are ASX lithium shares getting slammed again on Monday? appeared first on The Motley Fool Australia.

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More reading

• Why is the Liontown share price sinking 9% on Monday?
• Here are the 10 most shorted ASX shares
• Why is the Allkem share price diving 8% today?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• What could be sending the Pilbara Minerals share price 7% lower today?

Motley Fool contributor Monica O’Shea 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 Woodside Energy Group Ltd (ASX: WDS) share price is sinking on Monday despite no word having been released by the company. However, it’s far from alone in the red. Many of its energy peers are suffering amid tumbling oil prices.

The Woodside share price is down 2.55% right now, trading at $37.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has slumped 0.33% and the S&P/ASX 200 Energy Index (ASX: XEJ) has dumped 1.47%.

Let’s take a closer look at what might be weighing on Woodside and its ASX 200 energy peers today.

Woodside shares tumble alongside oil prices

The Woodside share price is tumbling on Monday. It comes as oil prices fall to near-12 month lows.

The Brent crude oil price slumped another 2% on Friday to close last week at US$83.63 a barrel. Meanwhile, the US Nymex crude oil price fell 2.1% to US$76.28 a barrel. That left the respective contracts down 4.6% and 4.7% week-on-week.

And the situation has only deteriorated today. Oil has fallen to its lowest point since December 2021 on Monday, according to media reports, with WTI crude oil falling to around US$74 a barrel and Brent crude oil slipping to less than US$82 a barrel.

Recent falls came amid concerns COVID-19 outbreaks in China could hamper demand for the black liquid and the suspension of discussions of a mooted US$65 to US$70 price cap on Russian oil, CNBC reported over the weekend.

Of course, oil producers’ profits are tightly tied to oil prices. Indeed, soaring energy commodity prices saw Woodside post a US$1.6 billion profit for the first half of 2022 – a 417% increase on that of the prior comparable period.

Interestingly, Woodside isn’t the worst performer in the ASX 200 energy sector right now. The Beach Energy Ltd (ASX: BPT) share price takes out the unfortunate crown, slumping 2.7%.

Other oil giants are also suffering. The share prices of Santos Ltd (ASX: STO) and Worley Ltd (ASX: WOR) are down 2.5% and 0.9% right now.

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

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More reading

• Would this side of Woodside put you off buying its shares?
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Crude down, stocks up: Here’s what happened to Woodside shares the last time this occurred
• Markets are nervous. Why waiting to buy these ASX 200 shares could prove expensive

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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