Day: 9 May 2023

S&P/ASX 200 (ASX: XJO) stocks are down 0.3% at lunchtime on Tuesday, but as always, there are outliers.

Today, ASX healthcare stock Imugene Limited (ASX: IMU) is leading the ASX 200 with its share price up 6% to 12 cents.

The immuno‐oncology biotech hasn’t released any announcements to the market today.

However, Imugene released some price-sensitive news last week, so let’s look at that.

What’s pushing this ASX 200 stock higher?

Imugene is a biotech ASX 200 stock. The company is developing immunotherapies to treat and kill cancerous tumours and is currently conducting several clinical trials.

Last week Imugene announced that its onCARlytics technology was featured in an abstract ahead of the American Society of Gene and Cell Therapy’s Annual Meeting (ASGCT) on 16 May to 20 May.

An abstract is essentially a pitch to conference organisers in the hope of a formal invitation to present at the conference itself.

Opportunities to present at medical conferences are important for rising biotechs like Imugene.

These events can garner interest from new investors and potential future customers (i.e., the attending medical practitioners.)

The abstract outlined the effectiveness of combination immunotherapy using Imugene’s onCARlytics technology together with Eureka Therapeutics’ Artemis T cell platform to treat hepatocellular carcinoma (HCC).

HCC is the most primary type of liver cancer and the sixth most common cancer in the world.

In a statement, Imugene said:

While hepatocellular carcinoma (HCC) has systemic therapies and curative treatment options, CD19 targeting CAR T cell therapy has shown positive clinical outcomes, despite some ongoing challenges in bringing effective results into solid cancers.

… the combination strategy can be applied to otherwise target-less tumours such as HCC, and this shows the potential this could be applicable to a wide array of solid cancers as an effective immunotherapy approach.

Imugene has presented at several conferences already in 2023.

They include the prestigious J.P. Morgan Healthcare Conference, which attracts thousands of global investors every year.

Imugene has also presented at the ASCO Gastrointestinal Cancers Symposium and the NWR Healthcare Conference.

Imugene share price snapshot

This ASX 200 stock is down 13% in 2023 while the S&P/ASX 200 Health Care Index (ASX: XHJ) is up 8%.

The post Up 6%, guess which ASX 200 stock is the best performing so far today appeared first on The Motley Fool Australia.

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More reading

• What’s going wrong for ASX 200 share A2 Milk today?
• Why is everyone talking about IAG shares on Tuesday?
• I’d invest $10,000 into these excellent ASX shares for the long-term
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today  

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

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One of the biggest events on the investing calendar has just occurred. The annual shareholders meeting of Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) was held over the weekend in the US state of Nebraska. Berkshire Hathaway is, of course, the American behemoth helmed by legendary investor Warren Buffett.

Known as the ‘Woodstock for capitalists’, this meeting is typically one of the most talked about events of the year. And it’s not just American investors, but financially interested people from all over the planet (hence why we are talking about it here at the Motley Fool Australia).

Warren Buffett commands the world stage yet again

Buffett, as well as his right-hand man Charlie Munger, usually spend hours answering all manner of questions from an enraptured audience. That’s despite both men being in their 90s. Here at the Fool, we’ve already discussed some of the major takeaways from this meeting. But today, let’s talk about why Buffett has just sold a major investment after only holding it for a few months.

Warren Buffett is well known for his long-horizon, buy-and-hold investing methods. He once famously said that his favourite period to own a share was “forever”. He has demonstrated a tangible commitment to this principle in real life. Berkshire has held companies like Coca-Cola Company (NYSE: KO) and American Express Company (NYSE: AXP) for many decades.

So it sticks in the craw somewhat that Buffett purchased more than US$4 billion worth of Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) stock last year, only to offload most of the stake within a few months. Berkshire still appears to hold a small portion of the original investment. But it is only a fraction of the original purchase.

Taiwan Semiconductor Manufacturing Co (TSMC) is often described as one of the most important companies in the world. It designs and manufactures the vast majority of the world’s supply of semiconductor chips. These chips are used in almost every complex electronic device, including computers, home appliances, cars, and smartphones.

In Berkshire’s annual general meeting, Buffett was asked why he had sold most of Berkshire’s TSMC holding after only a few months.

TSMC: An usually short investment for Berkshire Hathaway

Buffett stated that he believes “Taiwan Semiconductor is one of the best-managed companies and important companies in the world, and you’ll be able to say the same thing five, ten or 20 years from now”.

However, he also said this:

I don’t like its location, and I reevaluated that…. I feel better about the capital that we’ve got deployed in Japan than in Taiwan. I wish it weren’t so, but that’s the reality, and I reevaluated that in light of certain things that were going on.

Buffett is probably alluding here to the fact Taiwan is one of the focal points in the geopolitical rivalry between the United States and China. Taiwan has been an independent and self-governed territory since the end of the Chinese Civil War in 1949.

However, the Chinese Communist Party still claims Taiwan and its territory as a province of the People’s Republic of China. That’s despite never actually controlling it.

The military assistance the US provides to the Taiwanese government is one of the central points of tension between the two countries. China has threatened to go to war to reclaim the island territory if peaceful unification fails.

Most of TSMC’s advanced foundries are located on the island of Taiwan itself. So this is probably what is spooking Buffett.

So it just goes to show that global geopolitics matters in investing. Buffett clearly loves TSMC as a company. But even so, its location alone has prompted him to distance Berkshire from investing in it.

The post Why did Warren Buffett sell this global tech giant after only a few months? appeared first on The Motley Fool Australia.

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More reading

• Invest like Warren Buffett with this ASX share to grow your wealth enormously
• Worried about the market? 2 ASX dividend stocks that could help you sleep at night
• Worried about a recession? Here’s why these investors are backing Warren Buffett
• How to get rich by following Warren Buffett’s advice
• Which stocks does Warren Buffett own (and what can ASX 200 investors learn from this)?

American Express is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in American Express, Berkshire Hathaway, and Coca-Cola. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool Australia has recommended Berkshire Hathaway. 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 Zip Co Ltd (ASX: ZIP) share price is down 1% so far in May.

Which also happens to be how much the ASX buy now, pay later (BNPL) stock is down in intraday trading today.

With the Zip share price having dropped 9% in April, stockholders will certainly be hoping for a better result in May.

So, what can investors expect?

What’s the outlook for the ASX BNPL share in May?

While short sellers tend to get it wrong as often as they get it right, the consistently high levels of short interest in Zip’s stock isn’t a strong endorsement for the outlook of the Zip share price.

In yesterday’s trading, short interest stood at 10.9%.

Short interest aside, on the plus side for the Zip share price in May, the company has already suffered through a 0.25% interest rate increase from the RBA and a matching increase from the US Federal Reserve this month.

With no more rate hikes on the cards in May, investors can at least breathe a sigh of relief on that front.

Zip also reported some strong quarterly results towards the end of April, which may help support the stock in the weeks ahead. Highlights included a 15% year-on-year increase in revenue, which reached $182 million.

And Zip could get some support in May from the company’s positive guidance. Management reported they have sufficient available cash and liquidity to get the stock back into profitability in the first half of the 2024 financial year.

Still, the Zip share price might well face more downside in May.

Potential headwinds could come amid any reports of further slowdowns in the Aussie or global economies, which could impact the company’s revenues.

And consumers stressed by high inflation and rocketing interest rates could drive further increases in credit losses for the ASX BNPL stock.

Then there’s the ongoing debate over new regulations for the industry. If the government comes out in May supporting the stricter options, which would see BNPL companies subject to similar regulations as credit card companies, that could see investors hitting the sell button.

Zip share price snapshot

It’s been a rough 12 months for the Zip share price, down 50% since this time last year.

So far in 2023, the ASX BNPL stock is down 10%.

The post What’s the outlook for the Zip share price in May? appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• Why did the Zip share price dump 9% in April?
• Short sellers reveal 4 ways to spot dud ASX shares
• Here are the 10 most shorted ASX shares
• The Zip share price is down 49% in a year. Here’s why I still won’t buy

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 positions in and has recommended Zip Co. 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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Rio Tinto Ltd (ASX: RIO) shares are bucking the broader market selling trend today.

Shares in the S&P/ASX 200 Index (ASX: XJO) miner closed yesterday trading for $111.96. Shares are currently swapping hands for $112.50, up 0.5%.

While stockholders will welcome today’s lift, there could be some far larger gains ahead for Rio Tinto shares.

That’s according to Goldman Sachs.

The broker has a buy rating on Rio Tinto with a target price of $136.20. That represents a whopping 21% upside to the current Rio Tinto share price.

Five reasons the ASX 200 miner’s share price could surge

Rio Tinto doesn’t solely mine iron ore.

Although the industrial metal remains its biggest revenue earner, Rio also produces aluminium, copper, mineral sands, diamonds and lithium. And the ASX 200 miner owns some of the largest and lowest-cost mining operations in the world.

Rio’s recently reported first-quarter results revealed record Pilbara iron ore shipments of 82.5 million tonnes, up 16% year on year. The miner reported it was well positioned to meet the high end of its full-year production guidance range.

Which brings us to the first reason Goldman Sachs believes Rio Tinto shares could be poised to surge 21%: “compelling relative valuation”.

Rio trades at around 0.9 times its net asset value (NAV). That compares to around 1.0 times NAV for BHP Group Ltd (ASX: BHP) shares and around 1.5 times NAV for Fortescue Metals Group Ltd (ASX: FMG) shares.

The second reason Rio Tinto shares could leap higher over the year is the miner’s “strong free cash flow (FCF) and dividend yield”.

According to Goldman’s estimates for FY23 and FY24, “FCF/dividend yield in 2023E (c. 10%/7% yield) & 2024E (c. 7%/6% yield) driven by our bullish view on iron ore, aluminium and copper prices.”

The third reason Goldman is bullish on Rio is the forecast for strong production growth in 2023 and 2024.

According to the broker’s analysts:

Rio is a FCF and production growth story in our view, with forecast Cu Eq production growth of ~6-7% in 2023 & 2024 driven by the acquisition of TRQ, the Gudai-Darri iron ore mine ramp-up to nameplate in 2023 and a rebound in aluminium production post labour and equipment challenges.

Then there’s the turnaround at Pilbara, the fourth reason Rio Tinto shares could leap 21% higher.

Noting Pilbara represents approximately 50% of RIO’s NAV, Goldman said it’s optimistic about:

The potential for FCF/t improvement in the Pilbara in 2023 with Guida-darri and over the medium to long run driven by Rhodes Ridge, and RIO recently outlining a Pilbara turnaround story with a medium term capacity target of 345-360Mt by 2026 (GSe 350Mtpa by 2030 with Rhodes Ridge).

And the fifth reason Goldman is optimistic on the outlook for Rio is the miner’s “compelling high margin low emission aluminium exposure”.

The broker notes that, “Rio has the world’s highest margin low emission aluminium business, with over 2.2Mt of Ali production powered by hydro.”

How have Rio Tinto shares been tracking?

Rio Tinto shares are down 3% in 2023 as the big rebound in iron ore prices from the November lows has begun to reverse.

The ASX 200 miner’s share price is up 28% since iron ore hit recent lows on 1 November.

The post 5 reasons Rio Tinto shares could surge 21% appeared first on The Motley Fool Australia.

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More reading

• Brokers say these ASX 200 mining shares are top buys
• Why the iron ore price is ‘not out of the danger zone’
• Top ASX passive income shares to buy in May 2023
• The Rio Tinto share price dumped 7% in April. Here’s why
• 2 ASX 200 mining shares to buy for big dividends: analysts

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 positions in and has recommended Goldman Sachs Group. 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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Shares in S&P/ASX 200 Index (ASX: XJO), former market darling A2 Milk Company Ltd (ASX: A2M) are tumbling on Tuesday. The fall comes amid news the company is undergoing an executive shakeup.

The heads of two of its segments – its USA business and Mataura Valley Milk – will step down, while other executives will be shuffled to fill newly-emptied positions.

The A2 Milk share price is tumbling 1.5% at the time of writing to trade at $5.27.

For comparison, the ASX 200 is also in the red today, falling 0.28%.

 Let’s take a closer look at the changes going down among the top dogs of A2 Milk.

Former market darling announces leadership shuffle

The A2 Milk share price is sliding today amid news the CEO of its USA business, Blake Waltrip, is stepping down, effective immediately. Waltrip has headed the business for seven years.

He will be succeeded by the current executive general manager of the company’s Australia and New Zealand (ANZ) arm, Kevin Bush. Bush’s new title will see him introduced as managing director of the USA business.

On account of Bush’s relocation, the company’s current chief strategy officer, Eleanor Khor, will take on extra responsibilities and a new title — managing director of ANZ and strategy.

Commenting on the news seemingly weighing on the company’s shares today, A2 Milk managing director and CEO David Bortolussi thanked Waltrip, continuing:

Blake has led the development of our USA business, successfully establishing the a2 Milk brand in the market, achieving nationwide distribution and expanding our product offering during that time.

I congratulate Kevin and Eleanor on their new roles and believe their leadership will make a difference to the growth and performance of our USA and ANZ businesses going forward.

But that’s not all.

CEO of Mataura Valley Milk Bernard May has also stepped down after seven years with the company.

His resignation sees John Roberts appointed as interim general manager at the business.

Roberts will support A2 Milk chief supply chain officer Chopin Zhang to transform the company’s supply chain. Their focus will be on developing its infant milk formula manufacturing capability and utilisation.

A2 Milk share price snapshot

Today’s slump is just the latest to dint the A2 Milk share price.

The stock is currently 22% lower than it was at the start of 2023. Though, it has gained 31% since this time last year.

Meanwhile, the ASX 200 has climbed 4% year to date and 2% over the last 12 months.

The post What’s going wrong for ASX 200 share A2 Milk today? appeared first on The Motley Fool Australia.

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More reading

• Why is everyone talking about IAG shares on Tuesday?
• I’d invest $10,000 into these excellent ASX shares for the long-term
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today  
• Here are the 3 most heavily traded ASX 200 shares on Monday

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 A2 Milk. 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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Sayona Mining Ltd (ASX: SYA) shares are up 2.5% in early trading on Tuesday to 20.5 cents.

Today’s gains may be cold comfort to long-term investors who have watched the ASX lithium share fall 25% over the past year.

But one fundie reckons now is the time to either buy your first stake in this North American lithium and graphite developer, or do a little dollar-cost averaging if your Sayona Mining shares have lost value.

Why is this expert backing Sayona Mining shares for growth?

As reported by The Bull, Tom Bleakley of BW Equities says Sayona Mining shares are a buy.

Bleakley reasons that the company is growing its resource base in Australia and Canada “through an aggressive exploration campaign”.

Sayona reported its first lithium production at its North American Lithium (NAL) project in March. It was only 70 tonnes of spodumene concentrate though, so not a commercial amount.

The miner expects to generate its first saleable concentrate in July.

Bleakley says:

SYA recently announced commercial spodumene concentrate production had resumed at the jointly owned North American Lithium project in Quebec.

SYA is targeting annual production of 226,000 metric tonnes a year, with first commercial shipments expected in the third quarter of fiscal year 2023.

Three other analysts covering Sayona Mining shares on CMC Markets also rate the ASX mineral explorer a buy.

What’s been weighing on the share price?

Well, like all ASX lithium shares, Sayona has retreated alongside lithium commodity prices over the past year.

According to Trading Economics, the lithium carbonate price has fallen 60% since hitting a record high in November 2022. This is mainly because China shut down electric vehicle (EV) subsidies in January.

However, lithium prices appear to be rebounding following news out of Chile.

The world’s second-biggest lithium-producing country intends to nationalise its industry and take a controlling stake in all new producers.

Trading Economics analysis says this “is expected to hamper long-term output growth …”.

Since then, the lithium carbonate price has recorded its first sizeable increase since November. It rebounded to above US$26,000 per tonne and is now sitting at about US$26,400 per tonne.

During April, Sayona Mining shares lost 4.8% of their value while the ASX All Ords rose by 1.7%.

Sayona Mining actually had a lot of positive news for the market last month, but after each new announcement, the shares seemed to slip back down.

Sayona announced a “substantial rise” in the estimated pre-tax net present value (NPV) of its 75%-owned NAL project and Authier Lithium Project.

A definitive feasibility study (DFS) revealed an NPV of $2.2 billion. This represented a big increase in the project NPV compared with NAL’s pre-feasibility study (PFS) released to the market in May 2022.

The PFS gave NAL alone a $1 billion NPV.

The company also announced a major resource expansion for its Moblan Lithium Project to 51.4 million tonnes at 1.31% Li2O. This made the project “one of North America’s single largest lithium resources”.

Sayona Mining shares rose again after the company released its March quarter activities and cash flow report.

The post Down 25% in a year, why this fundie thinks you should buy Sayona Mining shares now appeared first on The Motley Fool Australia.

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More reading

• ‘Buying opportunity’: 2 ASX 200 mining shares ripe to snap up now
• Here are the 10 most shorted ASX shares
• The CEO has sold 4.5 million Sayona Mining shares in the past week. Is this a red flag?
• Why did the Sayona Mining share price sink 5% in April?
• Here are the 3 most heavily traded ASX 200 shares on Monday

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

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Insurance Australia Group Ltd (ASX: IAG) shares are in the ASX 200 spotlight this Tuesday. Not because the IAG share price has slipped by a notable 0.8% in early trading so far. IAG shares are currently down to $4.94 a share after closing at $4.98 yesterday.

That’s a loss that trails the broader S&P/ASX 200 Index (ASX: XJO), which is currently down by 0.36%.

But that’s not the primary reason IAG shares are making news today, although it is probably a consequence.

This ASX 200 insurance share had some big news for investors this morning. Just before market open, IAG released an ASX announcement that heralded some major changes at the company.

IAG has revealed its chief financial officer, Michelle McPherson, is to retire. McPherson will be leaving IAG at the end of the 2023 calendar year. She has only been in the role since early 2020.

But it’s not just the CFO that is leaving IAG. The company has also revealed she will be joined by IAG’s chief insurance and strategy officer, Tim Plant, who’s also heading for the door. Plant will be departing a little earlier, with his retirement from the company pencilled in for 30 June.

In Plant’s case, his role seems to have been made surplus to IAG’s future requirements. Here’s what the company’s statement said about his departure:

IAG’s Chief Insurance & Strategy Officer Tim Plant will be leaving IAG on 30 June 2023 as the company consolidates its group functions to better support its three operating businesses: Direct Insurance Australia, Intermediated Insurance Australia, and New Zealand.

IAG CEO and managing director Nick Hawkins made the following comments about both executives’ departures:

Michelle has played an important role in helping drive the business to achieve its strategic goals during a challenging time for the industry and economy. I would like to thank Michelle for her contribution and wish her all the best in her retirement later this year…

Our plans are clear. We want to accelerate the delivery of our plans and ensure our three operating businesses can continue to meet customer needs in this rapidly changing environment. Tim has established greater discipline and alignment on how we execute our strategic priorities and helped to strengthen our underwriting governance during his time at IAG. I thank him for his contribution.

So a big day of change for Insurance Australia Group and IAG shares today. Perhaps this big shakeup is what’s driving investor uncertainty with the IAG share price so far this Tuesday.

An IAG share snapshot

Although IAG shares are having a rough time of it today, this ASX 200 financials share has had a fairly decent year in 2023 to date. IAG is currently still up a healthy 5.36% since the start of the year and has risen by 6.28% over the past 12 months.

That compares pretty favourably against the ASX 200, which is ‘only’ up by 4.4% year to date, and by 1.85% over the past 12 months:

The current IAG share price gives this insurance giant a market capitalisation of just over $12 billion, with a dividend yield of 2.24%.

The post Why is everyone talking about IAG shares on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• I’d invest $10,000 into these excellent ASX shares for the long-term
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today  
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Which ASX 200 travel share has already taken off by 48% in 2023?

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

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The Commonwealth Bank of Australia (ASX: CBA) share price is sliding today, down 0.5%.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $97.12. Shares are currently changing hands for $96.60 apiece.

This comes following this morning’s release of CBA’s quarterly update for the three months ending 31 March, and, for some context, at a time when the ASX 200 is down 0.2%.

Here’s what the big four bank reported.

CBA share price dips despite profit leap

• Unaudited cash net profit after tax (NPAT) of $2.6 billion, up 10% from the prior comparative quarter
• Home lending increased by $6.9 billion, or 5.2% from the March 2022 quarter
• Business lending was up by $2.6 billion, a 12.0% year on year increase
• CET1 (Level 2) ratio of 12.1% under APRA’s revised capital framework, unchanged in the quarter

What else happened during the quarter?

Over the three months, the bank progressed with its on-market share buyback, which has been offering some tailwinds for the CBA share price.

As at 8 May 2023, CommBank had completed approximately $2 billion of the $3 billion share buyback. CBA also purchased some $600 million worth of shares on-market to neutralise the impact of the 1H23 Dividend Reinvestment Plan.

On the cost front, operating expenses excluding remediation, fell by 1%, largely driven by lower staff costs. The bank spent more on IT, marketing and New Zealand flood relief payments.

Perhaps pressuring the CBA share price today was the bank’s report that its net interest income came in 2% lower during the quarter. CBA said volume growth was offset by lower net interest margins (NIM). The bank’s NIM came under some pressure from some stiff competition for home loans as well as its customers switching to higher-yielding accounts.

Home loan arrears remained at a low 0.44%. Management said this reflects the low levels of unemployment and stability in savings buffers over the quarter.

Total credit provisions came in at $5.7 billion. There was a small increase in collective provisions to $5 billion and an $82 million increase in individual provisions to $700 million.

The bank’s balance sheet remained strong in the quarter, with customer deposit funding flat at 75%.

CBA reported having an $8.7 billion capital surplus to the minimum regulatory requirement.

What did management say?

Commenting on the results that have yet to lift the CBA share price today, CEO Matt Comyn said:

Our capital position remained strong with CET1 (Level 2) ratio at 12.1% following the payment of $3.5 billion in 1H23 dividends, well above APRA’s minimum regulatory requirement of 10.25%.

We have maintained our disciplined approach to managing credit, interest rate, funding and liquidity risks, and our balance sheet strength positions us well to continue to support our customers and extend the credit required to grow the Australian economy.

What’s next?

Looking at what could impact the CBA share price in the months ahead, Comyn said, “As higher interest rates impact the Australian economy in the period ahead, we expect economic growth to continue to moderate.”

However, he added that Australia and CommBank are well positioned, with a strong national banking system and a return to population growth.

Comyn added:

We remain positive on the medium-term outlook. The strength of our balance sheet means we are well placed to continue supporting our customers and the broader Australian economy while delivering predictable and sustainable returns to our shareholders.

CBA share price snapshot

The CBA share price is down 6% over the past 12 months. Longer-term, shares are up 37% over five years.

The post CBA share price slips today despite $2.6 billion cash profit appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for the CBA share price in May?
• Banking crisis continues: What’s up (and down) with ASX 200 bank shares today?
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• Why did the CBA share price lag the ASX 200 in April?

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 South32 Ltd (ASX: S32) share price is in the red on Tuesday. That’s despite the company revealing an exciting win for its Hermosa Project – the only advanced operation able to supply two designated critical minerals, zinc and manganese, within the US.

The Arizona-based project is officially the first mining project added to the US Federal Permitting Improvement Steering Council’s FAST-41 process.

Its inclusion on the FAST-41 dashboard is expected to support the company to gain federal permits for the development of the project’s Taylor and Clark deposits.

Right now, the South32 share price is $4.19, 0.24% lower than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.32% at the time of writing.

Let’s take a closer look at today’s news from the diversified ASX 200 mining stock.

Hermosa Project added to FAST-41 process

The South32 share price is falling this morning amid what CEO Graham Kerr dubbed “an important milestone” for its Hermosa Project.

Now the project has qualified for the FAST-41 process, the US government will work with the company to create a coordinated project plan. That’s expected to provide a more efficient and transparent pathway for federal approvals.

Commenting in today’s release, Kerr said:

The inclusion of Hermosa as the first mining project added to the FAST-41 process is an important milestone that recognises the project’s potential to strengthen the domestic supply of critical minerals in the US.

South32 expects to complete the project’s Taylor zinc-lead-silver deposit’s feasibility study in the second half of 2023.

Meanwhile, work at the Clark manganese deposit has confirmed its battery-grade production could be sold to the North American electric vehicle supply chain.

The company will now kick off a definition phase pre-feasibility study at the Clark deposit. Its efforts will also see sample product sent to potential customers, while pilot plant production has already begun.

South32 share price snapshot

Fortunately, today’s slump hasn’t been enough to send the South32 share price into the year-to-date red.

The stock is still 6% higher than it was at the start of 2023. Though, it has fallen 10% since this time last year.

Meanwhile, the ASX 200 has gained 4% so far this year and 2% over the last 12 months.

The post South32 share price slumps amid ‘important’ US milestone 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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Lynas Rare Earths Ltd (ASX: LYC) shares are in the green again today after a spectacular 12% lift yesterday.

Lynas shares are currently trading for $7.45, up 1.09% on yesterday’s closing price of $7.37.

The ASX rare earths stock soared 11.84% yesterday on news the company won’t have to close its Malaysian processing plant — the world’s largest single rare earths processing plant — in July.

Let’s recap what’s happening.

What’s pushing Lynas up this week?

As we reported yesterday, Lynas announced that the Malaysian government is allowing it to continue importing and processing lanthanide concentrate until 1 January 2024.

This is six months later than was initially allowed under the licence renewal Lynas received in February.

The Malaysian government imposed the ban due to environmental concerns. It announced the change back in 2020.

Upon receiving its renewal in February, Lynas appealed the ban. The rare earths company argued it would force it to temporarily shut down the entire Malaysian facility while it waited for feedstock to become available from its new Kalgoorlie Rare Earths Processing Facility.

In its statement yesterday, Lynas said it would be reviewing further legal avenues.

As my colleague Brooke reports, ASX investors have fallen out of love with Lynas shares this year.

A number of curveballs for the miner have weighed on investor sentiment.

But the ASX share appears to be on an upward trajectory now.

Is it too late to buy Lynas shares?

Lynas shares were in the dirt for most of the first quarter of 2023, as shown above.

In March, the ASX rare earths stock kept testing its 52-week low and eventually hit rock bottom on 6 April at $6.02.

That presented one heck of a buy-the-dip opportunity, given Lynas shares have since recovered by more than 20%.

As reported in The Australian today, three brokers have now upgraded their ratings on Lynas shares.

Translation: These guys think it’s not too late to buy Lynas shares.

Macquarie has raised its rating on Lynas to outperform and CLSA has raised its rating to buy.

Bell Potter has increased its 12-month share price target by 11% to $8.90.

Citi has cut its rating to neutral.

The post Is it too late to buy Lynas shares following this week’s surge? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today  
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Lynas, Piedmont Lithium, Westpac, and Woodside shares are rising
• Why is ASX 200 share Lynas Rare Earths leaping 12% on Monday?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in Macquarie Group. 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 Macquarie 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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