Category: Stock Market

The ANZ Group Holdings Ltd (ASX: ANZ) share price jumped to $29.89 in early trade today, reaching a new 52-week high, surpassing previous levels reached in March 2024, as we can see on the chart below. But, this comes as ANZ faces a potential issue related to bond trading.

ANZ’s main earnings generator may be loans, but the business is also one of the large traders of Australian government bonds.  

According to reporting by the Australian Financial Review, ANZ supplied incorrect figures to the Australian Office of Financial Management (AOFM).

Alleged inflated bond trading figures

The AFR reported that ANZ overstated the value of government bonds it traded by over $50 billion in the last 12 months, which then allegedly boosted its prospects by winning mandates from the government to issue Commonwealth debt.

ANZ is meant to submit quarterly figures to the agency, and then AOFM selects the largest traders for issuances.

The bank reported to the AOFM that it had traded $137.6 billion in government bonds for clients in FY23. It then later disclosed that the correct figure was $83.2 billion.

This comes after the AFR reported earlier this year that the regulator was investigating ANZ’s trading for “allegedly manipulating the benchmark 10-year futures rate” when it was appointed as a manager for a $14 billion government bond sale last year. The AFR said this could have made ANZ a sizeable profit, paid multi-million bonuses to the traders, and cost taxpayers $80 million in extra borrowing costs.

Since then, ANZ has been excluded from some major government transactions. The ASX bank share normally makes between $5 million to $10 million a year by being the manager of large syndicated Australian government bond sales every year, and it makes much more for facilitating bond trades.

The AFR said its investigation had uncovered “multiple discrepancies” in the information reported to AOFM, which raised questions “about how widespread workplace and trading issues were within the bank’s markets division.”

It was reported by the AFR that an internal ANZ email attributed the mistakes to “spreadsheet errors” made by support staff in Bangalore. Other mistakes reportedly included counting repurchase transactions, incorrectly classifying particular sales in certain geographies, and assigning trades to the wrong business units. Another error was allegedly ANZ’s purchase of bonds directly from the AOFM through weekly auctions as domestic institutional investors.

The AFR reported that on 15 August, ANZ staff wrote to the AOFM and stated that the bank had “identified some deficiencies in the data around the volume, size and allocation previously provided.”

Time will tell what the fallout of this will be for the bank.

ANZ share price snapshot

Since the start of 2024, the ANZ share price has risen by 14%, compared to 3% for the S&P/ASX 200 Index (ASX: XJO).

The post ANZ shares hit 52-week high despite alleged $54 billion problem appeared first on The Motley Fool Australia.

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

The Ora Banda Mining Ltd (ASX: OBM) share price is having a day to remember on Thursday.

At the time of writing, the ASX gold share is up 14% to a 52-week high of 40.5 cents.

Why is this ASX gold share surging today?

Investors have been fighting to get hold of the gold miner’s shares today after it released an update on the 100% owned Davyhurst Gold Project.

According to the release, the ASX gold share’s board has approved the development of the Sand King Underground mine at the project in the Eastern Goldfields of Western Australia.

Management notes that this final investment decision (FID) aligns with the company’s strategic objective of owning and operating at least two high-grade mines and to achieve mid-tier status by the end of June 2025.

Ora Banda revealed that the mine, which will become the second to be developed by the company in less than two years, is expected to hit a steady state production level of approximately 60,000 ounces per annum in the June quarter of 2025. This puts it on course to achieve production of 150,000 ounces of gold in FY 2026.

The underground mine will require investment capital of ~$39 million, with a maximum cash draw down of ~$32 million. This will be funded by operating cashflows from Riverina Underground and existing cash.

The ASX gold share’s managing director, Luke Creagh, was pleased with the FID and the company’s production growth outlook. He said:

This is a very exciting time for the Company as the Ora Banda team has achieved a significant amount in a short period, finding two underground mines in less than two years since changing strategies – a success rate which also indicates the significant prospectivity of the belt.

The Riverina Underground continues to ramp up well and with the support of Sand King Underground, is expected to deliver 40% year-on year growth and ~34% reduction in AISC/oz over the same period. “Our DRIVE to 150 plan to target 150,000 ounces in FY26 firmly places us on the pathway to becoming a mid-tier gold producer, and the most exciting part is that we are only just getting started on unlocking this highly prospective and under-explored tenement package”

FY 2025 guidance

Also giving the ASX gold share a boost was the release of its guidance for FY 2025.

Management is forecasting production of 100,000 ounces to 110,000 ounces with an all-in sustaining cost (AISC) of A$1,975 per ounce to A$2,125 per ounce.

The post Why is this ASX gold share racing 14% higher today? appeared first on The Motley Fool Australia.

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

The five most popular ASX shares purchased by Aussie investors over the 12 months to May have been revealed.

A survey of more than 2,000 Australian investors conducted by online trading platform Stake reveals four exchange-traded funds (ETFs) and an ASX lithium share attracted the most investment over the period.

Let’s check out the results.

Top 5 ASX shares purchased by Aussie investors

1/ Vanguard Australian Shares Index ETF (ASX: VAS) 

The Vanguard Australian Shares Index ETF is an index-based ETF that tracks the performance of the S&P/ASX 300 Index (ASX: XKO). This means VAS ETF investors have exposure to some of the biggest ASX shares on the market. These include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia Ltd (ASX: CBA), CSL Ltd (ASX: CSL), and Wesfarmers Ltd (ASX: WES).

The VAS ETF is trading at $97.60 per unit today, up 0.94%.

2/ iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is an index-based ETF that tracks the performance of the 500 largest United States companies comprising the S&P 500 Index (SP: .INX). These include the ‘Magnificent Seven’ stocks, such as Microsoft Corp and Nvidia Corp, and other superstar shares like GLP-1 medicine maker Eli Lilly And Co.

The IVV ETF is among the 10 cheapest ASX ETFs on the market, and is $55.54 per unit today, up 0.78%.

3/ Vanguard Msci Index International Shares ETF (ASX: VGS)

The Vanguard Msci Index International Shares ETF tracks the return of the MSCI World ex-Australia (with net dividends reinvested). So, there are no ASX shares involved, but you do get exposure to about 1,500 companies from 23 developed countries. They include the US, United Kingdom, Japan, Canada, France, and Switzerland. That’s some nice geographical diversification in a single trade!

The VGS ETF is trading at $124.91 per unit today, up 0.82%.

4/ Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF tracks the performance of the technology-heavy NASDAQ-100 Index. Betashares investment strategist Tom Wickenden says the Nasdaq 100 is full of innovation stocks, including those involved in artificial intelligence (AI), and innovation will be a key factor driving shareholders’ returns in the future. Here are two fun facts you may not know about NDQ ETF.

The NDQ ETF is trading at $45.44 per unit today, up 0.73%.

5/ Pilbara Minerals Ltd (ASX: PLS)

ASX lithium share Pilbara Minerals has lost 41% of its value over the past 12 months. This is primarily because lithium commodity values have plunged, resulting in most ASX lithium shares taking a dive.

The Pilbara Minerals share price is $2.97, up 1.02%.

The post The 5 most popular ASX shares bought by investors appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in BHP Group, CSL, Commonwealth Bank Of Australia, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, CSL, Microsoft, Nvidia, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF and Wesfarmers. The Motley Fool Australia has recommended CSL, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Core Lithium Ltd (ASX: CXO) share price is surging higher today.

Shares in the All Ordinaries Index (ASX: XAO) lithium stock closed yesterday trading for 9.7 cents. In late morning trade on Thursday, shares are changing hands for 10.2 cents apiece, up 5.2%.

For some context, the All Ords is up 0.9% at this same time.

In a welcome turnaround, today’s gains see the embattled Core Lithium stock up 20% since last Wednesday’s close.

Here’s what’s spurring ASX investor interest today.

What’s boosting the Core Lithium share price?

Investors are bidding up the Core Lithium share price after the miner announced it had commenced reverse circulation (RC) drilling at its 100% owned Shoobridge Project, located in the Northern Territory.

The Shoobridge drilling campaign is part of Core’s FY 2025 exploration program.

Today’s announcement comes on the heels of the miner’s preliminary FY 2024 results, released yesterday.

Commenting on Core’s exploration plans following on those results, CEO Paul Brown said:

Our strategic focus will be on making Finniss a more robust operation in the future, and exploration is a key enabler of this.

In FY 2025, we will be drill testing priority targets around Finniss, potentially adding meaningful life to future lithium mining operations. We will also be advancing earlier stage, low multi-commodity exploration activities.

Today, the All Ords lithium stock announced that it is the first company to explore and drill the “prospective, potentially spodumene-rich, pegmatite systems” at Shoobridge for lithium.

Core also considers the area prospective for gold, with a known gold anomalism extending over a strike length of 4.5 kilometres. Uranium and base metals have also been found in the area.

Commenting on the commencement of the drill program that’s lifting the Core Lithium share price today, Brown said, “We are thrilled to start the first ever lithium drilling program at Shoobridge. This marks the start of an exciting FY25 exploration program for Core, and we look forward to delivering results that capture the value inherent in our tenement portfolio.”

Brown added:

We will be disciplined in our approach to exploration and pursue opportunities for meaningful mineral discoveries or with the potential for a high return on investment.

While we are firmly focussed on positioning the Finniss Lithium Project for a future restart, we are excited by projects such as Shoobridge that both support this objective and provide complementary growth opportunities.

The company highlighted that “a significant portion” of its FY 2025 exploration budget will go towards advancing and testing lithium targets with the goal of identifying substantial deposits within trucking distance of its Finniss lithium processing plant.

Despite the past week’s strong run, the Core Lithium share price remains down 89% over 12 months.

The post Up 20% in a week, why is the Core Lithium share price racing higher again today? appeared first on The Motley Fool Australia.

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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.

The S&P/ASX 200 Index (ASX: XJO) is back on form and roaring higher on Thursday.

At the time of writing, the benchmark index is up 0.95% to 7,890.6 points.

This follows a strong night on Wall Street driven by interest rate cut optimism. For example, the Dow Jones index rose 1.1%, the S&P 500 climbed 1%, and the Nasdaq stormed 1.2% higher. The latter two indices closed at new record highs.

Speaking of record highs, a number of ASX 200 shares are hitting new highs on Thursday. Let’s take a look at a handful that are setting records for their lucky shareholders today:

Aristocrat Leisure Limited (ASX: ALL)

The Aristocrat Leisure share price is pushing higher again on Thursday. This has seen the ASX 200 gaming technology share reach a new high of $52.09. This stretches its 12-month return to an impressive 40%.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price has hit a new record high of $130.30 this morning. This means that the shares of Australia’s largest bank are now up approximately 31% since this time last year. Incredibly, this is despite almost every major broker declaring this ASX 200 share as vastly overvalued at current levels.

REA Group Ltd (ASX: REA)

The REA Group share price has breached the $200 market for the first time. In morning trade, they have climbed to a record high of $200.50. The realestate.com.au operator’s shares have risen 40% over the past 12 months.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is on fire today thanks to some big news out of the United States. This has seen the radiopharmaceuticals company’s shares rocket higher and reach a new high of $20.16. Telix shares are now up approximately 80% since this time last year.

Xero Ltd (ASX: XRO)

The Xero share price has continued its run and hit a new record high of $141.49. This latest gain means the cloud accounting platform provider’s shares have risen around 19% over the last 12 months. Goldman Sachs thinks this run can continue. Earlier this month, its analysts reiterated their conviction buy rating with an improved price target of $180.00.

And the rest

Other ASX 200 shares that are scaling new heights today and making their shareholders smile are retail giant JB Hi-Fi Ltd (ASX: JBH), insurance broker Steadfast Group Ltd (ASX: SDF), and enterprise technology provider TechnologyOne Ltd (ASX: TNE).

The post CBA and 7 other ASX 200 shares smashing new highs on Thursday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Technology One, Telix Pharmaceuticals, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, REA Group, Steadfast Group, Technology One, Telix Pharmaceuticals, and Xero. The Motley Fool Australia has positions in and has recommended Steadfast Group and Xero. The Motley Fool Australia has recommended Jb Hi-Fi, REA Group, Technology One, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A2 Milk Co Ltd (ASX: A2M) shares are in the green today.

Shares in the S&P/ASX 200 Index (ASX: XJO) dairy stock closed yesterday trading for $6.82. In morning trade on Thursday, shares are swapping hands for $6.88, up 0.8%.

For some context, the ASX 200 is up 0.9% at this same time.

This comes after the company released an update on its voting intentions at today’s special Synlait Milk Ltd (ASX: SM1) shareholders’ meeting. That’s taking place at 2pm today, New Zealand time.

Here’s what’s happening.

A2 Milk shares in the green ahead of Synlait loan vote

A2 Milk shares are marching higher after the company said it has been in discussion with Synlait regarding the junior dairy stock’s recapitalisation plan. That plan includes a $130 million shareholder loan as well as Synlait’s proposed equity raising and concurrent refinancing of its bank facilities.

 A2 Milk said it “continues to have concerns and will engage in discussions with Synlait in the coming weeks”.

However, management confirmed that it would vote in favour of today’s resolution.

The Synlait Milk share price is going ballistic on the news, up a whopping 50% to 34.5 cents.

If you own A2 Milk shares, you also own a slice of Synlait. A2 Milk holds almost 20% of Synlait shares.

If shareholders vote in favour today, Synlait will receive the $130 million loan from Bright Dairy, which owns around 39% of Synlait shares. Bright Dairy is not allowed to vote on the proposal under New Zealand trading rules.

Synlait said if the resolution received the green light today, it would draw down the entire loan to meet its $130 million bank payment, due on 15 July.

On 25 June, Synlait chair George Adams said, “Synlait is now progressing at pace a series of structural initiatives to address the scale of challenges we face today.”

Adams added:

We are committed to resetting Synlait’s balance sheet, with the support of Bright Dairy, to ensure we return to a position where we can deliver the growth potential we see in our core Advanced Nutrition and Foodservice businesses.

Bright Dairy director Julia Zhu said, “We are deeply committed to Synlait, believing its assets and operations to offer significant value and opportunity within regional and global dairy markets.”

Zhu continued:

This $130 million shareholder loan facility is one part of Bright’s wider support to see Synlait return to a much stronger financial and operating position, as early as practicable in this economic cycle.”

With today’s intraday gains factored in, A2 Milk shares are up 37% over 12 months.

The post A2 Milk shares lift amid backing for $130 million Synlait loan appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Actinogen Medical, Karoon Energy, and Race Oncology shares are rising
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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 recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Telix Pharmaceuticals Ltd (ASX: TLX) share price is having a very strong session on Thursday.

In morning trade, the radiopharmaceuticals company’s shares are up 15% to a new record high of $20.16.

Why is the Telix Pharmaceuticals share price rocketing?

The catalyst for this strong gain has been the release of a very positive announcement this morning relating to its United States business.

According to the release, the company stands to benefit from proposed changes announced by the Centers for Medicare & Medicaid Services (CMS).

These proposed changes are for the Hospital Outpatient Prospective Payment System (OPPS) rule to improve payments for diagnostic radiopharmaceuticals for Medicare patients in the United States, facilitating continued patient access after transitional pass through payment status expires.

Management notes that under the proposed changes, diagnostic radiopharmaceuticals, including its Illuccix product, will continue to be paid separately by the CMS for traditional Medicare Fee for Service patients in the hospital outpatient setting following the expiry of transitional pass-through payment status.

Another positive is that this would also apply to new diagnostic products being developed by Telix, if and when they are approved.

Why is this important?

Currently in the United States, the costs associated with diagnostic radiopharmaceuticals are packaged together into the payment for the nuclear medicine tests (scans).

The CMS is proposing refinements to this policy to improve the accuracy of overall payment amounts by paying separately for any diagnostic radiopharmaceutical with a per day cost greater than US$630.

The CEO of Telix Americas, Kevin Richardson, was pleased with the proposed changes and appears to believe it could be a boost to Illuccix demand. Richardson commented:

Telix welcomes the proposed rule, which will facilitate more equitable and reliable access to advanced imaging for all patients and support physicians to prescribe the most clinically appropriate solution. We commend the vision of CMS and the coalition, along with patient groups, for raising awareness about the necessity to reform the payment system to enhance patient outcomes and access.

Telix is committed to continued innovation in the field of radiopharmaceutical diagnostics to provide new solutions to further patient access, especially for underserved patient populations and in areas of high unmet clinical need.

Following today’s gain, the Telix Pharmaceuticals share price is now up a whopping 82% since this time last year. To put that into context, a $10,000 investment a year ago would have grown to become just over $18,000 today.

The post Why is the Telix Pharmaceuticals share price rocketing 15% to a record high? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Artificial intelligence might be creating a costly problem. If it comes unstuck, a few ASX shares could win from the AI fallout.

The recent stratospheric rise of artificial intelligence has attracted investors far and wide. It’s not hard to understand why… the share price of AI-enabler Nvidia Corp (NASDAQ: NVDA) has rocketed 211% in one year.

In times like these, it’s worth taking a step back to reflect. While pondering, I stumbled upon a perceptive blog by Sequoia Capital partner David Chan. In it, Chan unpacks the pin that may pop the AI bubble.

Money for nothing?

Data centre revenue is Nvidia’s largest source of revenue, stemming from the AI boom.

During the trailing 12 months, the chip designer racked up US$79.8 billion in revenue. It’s safe to say these data centres — such as Microsoft Azure, Amazon Web Services, and Google Cloud Platform — are spending a huge chunk of money on AI-capable hardware.

Nvidia’s annualised revenue from its data centre segment is expected to reach US$150 billion by the fourth quarter. According to Chan’s analysis, graphics processing units (GPUs) — Nvidia’s hardware — account for about half of a data centre’s operating cost.

The Sequoia Capital partner then explains that the end users, i.e., companies using AI compute, need to make a return on their spend. Assuming a 50% gross margin, end users need to generate $600 billion in revenue from AI products for the $150 billion outlay to be worthwhile, as shown in the summary below.

Where’s the problem?

According to Chan, OpenAI generates most of the AI revenue, totalling $3.4 billion. Other startups also make some money, but none surpass $100 million per year.

Chan assumes the tech giants will be able to make about $10 billion annually from AI features. Even then, a $500 billion difference exists between required AI revenue and expected — what Chan calls a ‘$500 billion hole’.

Excess AI supply could boost these ASX shares

If a massive overestimation of AI demand eventuates, where might the opportunities be?

Imagine processing power in a data centre as akin to a hotel room. When you have more rooms than guests, the logical move is to drop prices until all rooms are filled — it’s better to make $50 per night than $0.

I suspect data centres will do the same if they have more hardware than needed.

Some ASX shares might benefit from underwhelming AI demand. I believe companies with significant cloud costs would reap the rewards of a data centre glut.

Think companies like REA Group Ltd (ASX: REA), WiseTech Global Ltd (ASX: WTC), and Xero Ltd (ASX: XRO). These companies depend on data centres to host data and run functions on behalf of their customers.

According to accounting firm EY, cloud hosting costs ‘account for 6% to 12% of [software as a service] revenue and constitute a sizable portion of their cost of goods sold (COGS). Therefore, it stands to reason that companies reliant on the cloud could see margins widen if data centre costs plunge.

The post Which ASX shares could soar if AI falls into a $500 billion hole? appeared first on The Motley Fool Australia.

More reading

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• 2 ASX shares close to 52-week highs I’m thinking about buying

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 Nvidia, REA Group, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Nvidia and REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The WA1 Resources Ltd (ASX: WA1) share price has returned from its trading halt with a thud.

In morning trade, the niobium explorer’s shares are down 12% to $16.65.

Why is the WA1 share price crashing?

Investors have been hitting the sell button today after the company’s management decided to take advantage of its meteoric share price to raise funds.

According to the release, WA1 Resources has received firm commitments for a placement of 3.5 million new fully paid ordinary shares to raise $60 million before costs.

The company will be raising these funds at a placement price of $17.00 per new share, which represents a 9.8% discount to where the WA1 share price last trade. It also represents an 11.8% discount to the 10-day volume weighted average price.

Why is the company raising funds?

The company advised that the funds raised from the placement will primarily support activities at the impressive Luni deposit and the broader West Arunta Project.

This includes ongoing mineral resource and extensional drilling, process testwork and flowsheet development, permitting, and project development activities. It also notes that the placement will support other exploration, administration/corporate costs, and general working capital.

WA1’s managing director, Paul Savich, was pleased with the success of the placement. He commented:

This Placement will support the Company’s efforts to increase momentum and continue to unlock the full value of the Luni discovery. The strong demand from new and existing institutions around the world reflects the quality of the recent Mineral Resource estimate, its tier-1 location and the significant potential for future growth.

Savich also revealed that the company is undertaking further drilling at Luni, which could increase the already massive mineral resource. He adds:

Two drill rigs are currently operating at Luni to increase confidence in, and extend, the Mineral Resource, along with providing further samples for metallurgical testwork. This placement will also allow the Company to accelerate its project development workstreams and expand exploration activities across the greater tenement package.

Despite today’s pullback, the WA1 share price remains up 220% since this time last year. This has been driven by excitement over its Luni deposit.

In its quarterly activities update, the company points out that its “MRE highlighted Luni as the world’s most significant niobium discovery in more than 70 years and one of Australia’s major critical minerals deposits.”

The initial inferred mineral resource contains 200 Mt at 1.0% Nb2O5 with a high grade subset of 53 Mt at 2.1% Nb2O5 (at a 0.25% Nb2O5 lower cut-off). It notes that this confirms the tier-1 scale and grade of Luni.

The post Why is the WA1 share price crashing 12% today? appeared first on The Motley Fool Australia.

More reading

• Up 52% this year, why is this ASX All Ords stock halted today?
• This ASX mining share is surging 26% on ‘high-grade’ drilling results
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• ‘We are excited’: Why this ASX mining stock is rocketing 14%
• Why James Hardie, Mader Group, MMA Offshore, and WA1 shares are dropping 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 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.

The Netwealth Group Ltd (ASX: NWL) share price is pushing higher on Thursday.

In morning trade, the investment platform provider’s shares are up 2% to $22.37.

This leaves its shares just a fraction short of a new record high.

Why is the Netwealth share price rising?

Investors have been bidding the company’s shares higher today in response to the release of its fourth quarter update.

According to the release, Netwealth’s funds under administration (FUA) increased $3.3 billion or 3.9% during the three months ended 30 June. This $3.3 billion increase comprises FUA net inflows of $3.8 billion (up 38.7% on third quarter inflows) and negative market movement of $0.5 billion.

This took Netwealth’s total FUA to a record of $88 billion, which represents a 25% or $17.7 billion increase year on year. This comprises FY 2024 FUA net inflows of $11.2 billion and positive market movement of $6.5 billion.

Also growing during the quarter was the funds under management (FUM). At the end of June, Netwealth’s FUM was up $0.8 billion quarter on quarter to $20.5 billion. This represents FUM net inflows of $0.9 billion.

Netwealth’s Managed Account balance was $17.6 billion at the end of June. This is up $4 billion or 29.4% year on year. Managed Account net inflows were $0.8 billion for the June quarter, increasing by $0.4 billion or 129.2% on the prior corresponding period.

What else did it report?

One thing that could be holding back the Netwealth share price today is its commentary on fees and margins. It said:

Positive market movements of FUA contribute to higher admin fee revenue, however, the impact is significantly diluted due to the structure of tiered administration fees and fee caps. In addition, many ancillaries are unimpacted by market movement. These factors when combined with the lower cash percentage, have resulted in a reduction in average revenue bps for the year, particularly in 2HFY2024.

No earnings updates or guidance was provided with this release. As a result, investors will have to wait for the company to announce its full year results next month to see what impact the above has had on its profitability for the year.

As a reminder, during the first half of FY 2024, Netwealth reported a 20% increase in total income to $123.3 million and a 28.3% lift in net profit after tax to $39.3 million.

The Netwealth share price is 62% over the last 12 months.

The post Netwealth share price higher on record quarter appeared first on The Motley Fool Australia.

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