Category: Stock Market

Many Aussies would choose to retire tomorrow if they won the lottery. But for those of us putting in the hard work year after year, when is the right time to slow down?

Everyone deserves to enjoy the fruits of a lifetime of work, saving and investing. After all, we can’t spend the money when we’re gone.

Australians are generally in a good place when it comes to saving for retirement. This is due to our excellent superannuation system, which mandates retirement contributions for employees and encourages saving for wealthier individuals.

If I were weighing up when to retire, there are four things I’d want to consider.

Large enough nest egg?

It would be unwise to retire before our finances can support our needs for the rest of our lives.

Each person has a different view of what their spending may look like in retirement.

A person in Sydney may need more than $100,000 per year if they don’t own and live in their own home, if they want to go on regular holidays, and so on. Whereas someone in regional Australia may be able to get by on a lot less with simple living.

I believe a share portfolio with a minimum of $1 million would be required to retire (early) if you don’t have other forms of income. Generating a 5% yield from the portfolio would make $50,000 of cash flow (before considering taxes), which doesn’t go as far as it used to.

A licensed financial planner can help people figure out a personalised plan to factor in things like spending intentions and how long the assets need to last. Someone retiring at 45 could need the money to last 40 or 50 years.

Older Aussies can receive financial assistance if they are eligible for it, such as the age pension and rental assistance, so they may not need as much capital to retire.

Emergency fund

I believe every adult Australian should have an emergency fund. Workers can lose their main source of income, and businesses can experience a downturn. The COVID-19 period and the GFC showed how dramatically the economy can change for the worse.

For people considering retirement, I suggest saving at least six months’ worth of spending in cash in an accessible online savings account. A year, or even two years, of saved spending could be prudent.

You don’t want to have to sell assets at beaten-down prices during a bear market. It would be better to call upon existing cash reserves.

Healthy and happy

Some jobs may be more stressful, unfulfilling or physically taxing than others. We’re only on this planet for so long, so if we have a choice to leave that stress behind, it could significantly increase our happiness and relaxation.

I’m not an expert on health – this is an ASX share website, after all. But health and happiness may be the best investments of all. Having more money won’t help buy back the time we could have spent with friends or family.

Consider continuing some form of work or volunteering

Taking it easy doesn’t necessarily mean we have to stop doing everything that has a goal or purpose.

We can decide to work less in the same industry if we like the job, choose another sector that is more enjoyable, or even volunteer in local communities. Having a routine can help in a number of ways.

If we do keep working in some way, this can bring in some income and mean we don’t need as much of an ASX share investment balance to retire sustainably.

The post How long should I wait to retire? 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 post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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

If you’re an Aussie investor hunting for reliable income from your ASX 300 shares, you’re in luck. Today is dividend day for three real estate stocks. And at their current share prices, they currently offer attractive dividend yields.

Let’s take a closer look at Growthpoint Properties Australia Ltd (ASX: GOZ), Abacus Group (ASX: ABG), and Stockland Corporation Ltd (ASX: SGP).

Growthpoint Properties

Growthpoint Properties has caught the eye of many investors today after it announced its final distribution amounts for FY 2024.

The ASX 300 share, which focuses on industrial and office properties, has seen its stock drop nearly 20% over the past year.

Today it confirmed a final distribution of 9.65 cents per share will be paid to its investors for FY 2024. This will bring the total payout for the 12 months to 19.3 cents.

At today’s closing share price of $2.36, up 2.6%, this translates to a juicy dividend yield of 8.62%.

Abacus Group

Next up is Abacus Group, another ASX 300 share that made news today after it reaffirmed its latest dividend payment to shareholders.

In May, the company announced it expected the H2 FY 2024 distribution to be 50% franked and 8.9 cents per share for the year. Given today’s closing share price of $1.16, this translates to a substantial yield of 7.2%.

It also said the group’s parent entity boasts sufficient franking credits to “fully frank” its dividend to $173 million or 19.3 cents per security.

“The group’s intention is to distribute these franking credits to security holders over the medium term”, it said in the May announcement.

This change in distribution policy “is consistent with Abacus Group’s strategy to simplify its corporate
structure, enhance its capital management and maximise securityholder returns”, it added.

The ASX 300 share confirmed a dividend of 4.25 cents per share with a payment date of 30 August 2024.

Stockland Corporation

Stockland is the last of the ASX 300 shares to round out the list. It is one of Australia’s largest REITs, with a market capitalisation of $10.5 billion at the time of writing.

Stockland advised today that its estimated distribution for the six months to 30 June 2024 should be 16.6 cents per ordinary stapled security.

The company noted this aligned with its full-year distribution guidance of 24.6 cents.

The team at Citi rates Stockland a buy with a price target of $5.10. According to my colleague James, the broker expects dividend growth for Stockland. It expects dividends of 26.2 cents in FY2024 and 26.6 cents in FY2025.

At today’s share price of $4.41, these projections translate to yields of 5.9% and 6%, respectively.

What’s next for these ASX 300 shares?

In summary, Growthpoint Properties, Abacus Group, and Stockland offer attractive dividend yields after their announcements today.

For Australian investors focused on income, these ASX 300 shares might be worth considering. As always, remember to conduct your own due diligence.

The post 3 ASX 300 real estate shares with attractive dividend yields appeared first on The Motley Fool Australia.

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

If you’re building an income portfolio, then having some ASX 300 dividend stocks that provide attractive dividend yields is always a good idea.

But which one could be quality options today? Let’s take a look at three for income investors to consider buying now:

Aurizon Holdings Ltd (ASX: AZJ)

The first ASX 300 dividend stock for income investors to consider buying is Aurizon.

It is a rail freight operator that transports more than 250 million tonnes of Australian commodities each year. This connects miners, primary producers and industry with international and domestic markets.

Analysts at Ord Minnett are positive on the company and believe it is positioned to provide investors with very attractive dividend yields. It is forecasting partially franked dividends of 17.8 cents per share in FY 2024 and then 24.3 cents per share in FY 2025. Based on the latest Aurizon share price of $3.63, this will mean yields of 4.9% and 6.7%, respectively.

Ord Minnett currently has an accumulate rating and $4.70 price target on Aurizon’s shares.

Dexus Industria REIT (ASX: DXI)

Another ASX 300 dividend stock for income investors to look at is Dexus Industria. It is a real estate investment trust with a focus on industrial warehouses.

Morgans believes the company is well-positioned to benefit from solid demand for industrial property and its development pipeline. It notes that “DXI’s industrial portfolio remains robust with the outlook positive for rental growth. The development pipeline also provides near and medium-term upside potential and post asset sales there is balance sheet capacity to execute.”

As for dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2024 and then 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $3.00, this will mean dividend yields of 5.5% and 5.5%, respectively.

Morgans has an add rating and $3.18 price target on its shares.

Woodside Energy Group Ltd (ASX: WDS)

A third ASX 300 dividend stock that could be a buy is Woodside Energy. It is one of the globe’s largest energy producers.

Morgans is also positive on the company and thinks that investors should be taking advantage of recent share price weakness. Its analysts recently said that they “see now as a good time to add to positions.”

As for income, the broker is forecasting fully franked dividends of $1.25 per share in FY 2024 and then $1.57 per share in FY 2025. Based on its current share price of $27.25, this represents attractive dividend yields of 4.6% and 5.75%, respectively.

Morgans has an add rating and $36.00 price target on its shares.

The post Buy these top ASX 300 dividend stocks today for an income boost appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy 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 recommended Aurizon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) shares have been having a rough year.

And while the telco giant’s shares have rebound off their multi-year lows, they are still a long way from their recent highs.

Does this make it a good time to invest? Let’s see what analysts are saying.

What are analysts saying about Telstra shares?

Opinion is divided on whether investors should be buying the company’s shares at current levels.

For example, Morgans notes that the company’s outlook was softer than expected and believes it made the wrong decision to not unlock value by offloading its InfraCo business.

Its analyst, Damien Nguyen, courtesy of The Bull, commented:

The positive outlook for its mobile and enterprise divisions still fell short of expectations. Retaining ownership of its fixed infrastructure business InfraCo rather than selling it prevented unlocking value in the share price. Telstra was recently trading on a higher price/earnings multiple than its 10-year average and when compared to international peers.

Morgans has a reduce rating and $3.00 price target on Telstra’s shares.

The bullish view

Analysts at Goldman Sachs don’t agree with this view, though. A recent note reveals that the investment bank has a buy rating and $4.25 price target on its shares.

While a touch disappointed with its recent update, the broker remains positive and sees a lot of value in its share price. It said:

Telstra is the incumbent telecom operator in Australia. We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn. Although there is some debate around the strategic benefits, we see a strong rationale for monetizing the recurring NBN payment stream, given its inflation linked, long duration cash flows could be worth $14.5bn to $17.9bn, with no loss of strategic benefit.

This view has been echoed by analysts at Bell Potter. The broker recently upgraded Telstra’s shares to a buy rating with a $4.25 price target. It said:

There is perhaps a lack of catalysts in the near term and we do not expect the company to change its view on not selling part or all of the Infrastructure business in the short to medium term. We do, however, see the FY24 result in August as a potential catalyst of sorts given we expect the company to meet – but not exceed – the guidance with the highlights being continued strong growth in the core Mobile and Infrastructure businesses and signs of some turnaround in Enterprise.

The post Telstra shares: Buy or Sell? 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 Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortescue Ltd (ASX: FMG) shares have trended lower this week, down almost 5.5% since Monday.

But the iron ore giant’s stock was back in the green, up 0.4% to $21.95 apiece near the close of trade today.

Fortescue has been in the headlines this week over a number of none market-sensitive initiatives. Let’s investigate.

Fortescue shares slip on large stock sale

Fortescue shares took a hit on Tuesday after news emerged a large investor in the company tendered a massive $1.1 billion block trade of its stock.

This hefty transaction – equating to 1.6% of the company’s market cap at the time – has stirred significant trading activity. According to my colleague Mitch, more than 58 million shares were traded by midday on the day, compared to the usual 5 million average.

And yet, the market is still abuzz with speculation about who the seller was.

Separately, Capital Group, a global fund manager, also reduced its holding in Fortescue shares by almost 1%, bringing its stake down to 6.62% from 7.65%, according to The Australian.

It’s important to note that this sale is separate from the larger block trade, which has no publicly known seller.

Iron ore price fluctuations have also been a significant factor affecting Fortescue shares. The price has retracted from more than US$140 per tonne on 3 January to around US$107 per tonne at the time of writing.

According to Trading Economics, a major reason behind the recent price weakness was economic data that “added to pessimism on ferrous metal demand from China”.

Because the iron ore major is a price taker on the commodity, this decline has put pressure on Fortescue and other iron ore players.

Strategic moves in renewable energy

Fortescue is also strengthening ties with China as part of its energy transition plans. Fortescue chairman Andrew Forrest spoke at the Australia-China CEO Roundtable on Tuesday.

According to a report in The Australian, he highlighted the potential for a supply chain that could significantly reduce emissions while maintaining China’s position as a leading global steel producer.

This collaboration is reportedly a strategic move to achieve Fortescue’s “Real Zero” decarbonisation targets.

And finally, Michael Masterman, a former Fortescue executive now embroiled in a legal battle with the company, has publicly questioned the effectiveness of Fortescue’s hydrogen-based green steel technology.

Masterman claims that his new venture, Element Zero, offers a more energy-efficient solution. It remains to be seen how this scenario will pan out.

What’s next for Fortescue shares?

Investors are keeping a close eye on Fortescue as the company navigates these challenges. The weakness in iron ore prices hasn’t helped the stock lately.

Fortescue shares have now slipped more than 25% this year to date and are down 2% since this time 12 months ago.

The post 5 reasons everyone’s talking about Fortescue shares this week appeared first on The Motley Fool Australia.

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

Terra Metals Ltd (ASX: TM1) shares are having an incredibly positive session on Thursday.

At one stage today, the copper explorer’s shares were up 210% to a new high of 9.6 cents.

The ASX small-cap stock has pulled back a touch since then but remains up 171% to 8.4 cents at the time of writing.

Why is this ASX small-cap stock exploding?

Investors have responded very positively to the announcement of new drilling results from the Dante Project in the West Musgrave region of Western Australia.

According to the release, a further 14 wide-spaced, first-pass reconnaissance drill holes at the Dante Reefs has confirmed the discovery of multiple Platreef-style copper-PGE sulphide reefs.

Management notes that the mineralisation has been defined over 4.5km so far across Reef 1 and Reef 2. However, it remains open along strike and downdip. There are assays pending from a further 16 drillholes covering an additional 4.5km of strike at Reef 2.

The company believes the drilling results to-date confirm that the Dante Reefs have the potential to host a large sulphide deposit containing copper, gold, PGEs, vanadium and titanium.

‘First of its kind in Australia’

The ASX small-cap stock’s managing director and CEO, Thomas Line, was excited with the results. He notes that this is the first of its kind in Australia. Line said:

We are excited to have discovered multiple Platreef-style copper-PGE sulphide reefs from a first pass-reconnaissance drilling program at the Dante Project; the first of its kind in Australia. Our next step is to continue to replicate these results over the extensive strike at the Dante Reefs, ensuring we are well positioned for success.

It’s clear that there is a concentration and combination of high value metals within the same layers in the Dante Reefs. Chalcocite and bornite appear to be the dominant copper-sulphides. Our highly experienced metallurgical team, led by Dr. Evan Kirby, have already commenced initial metallurgical test work, focusing on the application of conventional flowsheets.

Line also notes that there is still a lot of drilling to come, which could mean even stronger results are coming in the future. He said:

This is just the beginning of the discovery story at the Dante Project, where the vast majority of targets and strike remain undrilled. New insights at the Cronus Prospect are highlighting possible vectors for higher-grade magmatic sulphides. We look forward to presenting these along with further assays in the coming weeks.

The post ASX small-cap stock explodes 210% on new copper find 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.

Innovation is one of the share market buzzwords of the moment amid all the hype around artificial intelligence these days.

Like most developed countries, Australia has a productivity problem.

AI is the latest innovation measure to gain attention, and it’s touted as a game-changer because of its potential to make workers more efficient.

But it appears Australian businesses are lagging behind when it comes to implementing innovation.

Innovation activity falls in FY22 and FY23

A report released by the Australian Bureau of Statistics (ABS) today says only 46% of Australian businesses implemented some sort of innovation activity over the two years to 30 June 2023.

For the purposes of the survey, innovation was defined as the introduction of a new or significantly improved good or service, an operational, organisational, or managerial process, or a marketing method.

Overall, innovation activity fell from 52% of businesses over FY20 and FY21 to 46% over FY22 and FY23.

What’s the problem?

The dip is at least partly due to the early COVID years skewing the results. The pandemic forced many businesses to quickly adapt to urgent new safety measures in their daily processes.

Another factor in the dip may be rising costs due to inflation, with the ABS finding economic pressures were the leading barrier.

A shortage of skilled workers was the second biggest reason why businesses were delaying innovation.

The report looked at two areas of innovation.

The first was goods and services, including new products and services, and new characteristics of existing products, such as fresh designs or packaging. The other was processes, defined as any improvement to the way a business is run.

Robert Ewing, ABS head of business statistics, said:

Businesses are now shifting their focus away from process innovation, to concentrating on their goods and services innovation. They’re now adjusting to the current economic conditions as cost-of-living pressures hit households and businesses.

Which businesses are innovating?

The ABS research showed innovation was more important to the income of smaller businesses.

Microbusinesses, with four or fewer employees, had the greatest proportion (at 8%) of companies earning three-quarters or more of their total income from new or improved goods and services.

In contrast, less than 1% of large businesses with 200 or more employees said their new and improved goods and services generated three-quarters or more of their total income.

The most popular items purchased for innovation were new machinery, equipment, or technology.

This was followed by new marketing activities and training, both at 37%. 

What are companies spending on innovation?

The data shows three out of every four businesses spent less than $25,000.

One in five businesses said a lack of funds stopped them from attempting innovation in FY22 and FY23.

Among the businesses that did implement some innovation, 30% undertook measures that cost nothing.

Ewing said:

Of the businesses that spent nothing on their innovation activity, some were doing this by improving their marketing activities to attract new customers.

We heard businesses were using social media to advertise and promote their goods and services. While others focussed on improving internal work practices to adapt to economic conditions.

This shows that businesses continue to find ways to innovate that don’t require substantial expenditure, which is especially important for very small businesses.

The post Costs and lack of skilled labour delay innovation among Australian businesses appeared first on The Motley Fool Australia.

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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.

The S&P/ASX 200 Index (ASX: XJO) is having another underwhelming session on Thursday. In afternoon trade, the benchmark index is down almost 0.2% to 7,756.1 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

James Hardie Industries plc (ASX: JHX)

The James Hardie share price is down 2.5% to $47.22. This may have been driven by a broker note out of Citi this morning. Ahead of the company’s investor day event, the broker has reaffirmed its neutral rating and $53.40 price target. It appears to believe that trading conditions in the United States aren’t particularly favourable for the company at present. This may have spooked investors and caused fears that tomorrow’s event will contain some bad news.

Mader Group Ltd (ASX: MAD)

The Mader Group share price is down over 5% to $6.16. This has been driven by news that its founder and executive chair has sold down his stake. Luke Mader sold 9.75 million shares via a buyer-led share crossing at a discount of $6.15 per share. Mader Group advised that the buyer was a tier one global financial services company with over US$2 trillion in assets under management. Mr Mader remains the majority shareholder in the company, retaining 103,697,095 shares. This represents ~52% of Mader’s issued capital. In other news, Mader Group has reaffirmed its FY 2024 guidance for revenue of at least $770 million and net profit after tax of at least $50 million.

MMA Offshore Ltd (ASX: MRM)

The MMA Offshore share price is down 2% to $2.64. This morning, this marine and subsea services provider revealed that its suitor, Cyan, has increased its takeover offer by 10 cents per share to a total of $2.70 cash per share. This was just one cent ahead of where its shares were trading yesterday. This appears to indicate that investors were expecting an even greater offer from Cyan. However, this is where it stops. Cyan has declared the improved proposal as its best and final offer, in the absence of a competing proposal. Its offer continues to have the support of MMA Offshore’s directors.

WA1 Resources Ltd (ASX: WA1)

The WA1 Resources share price is down 8% to $18.96. This is likely to have been driven by profit taking following a whopping 27% gain on Wednesday. This was driven by news that its initial metallurgical testwork program on niobium mineralisation at the Luni deposit delivered strong results. Bell Potter was very pleased with the news and described it as a major de-risking event. It commented: “WA1 have passed a significant de-risking hurdle in confirming that niobium minerals from its Luni project can be concentrated via a two-stage floatation circuit with recoveries and concentrate grades in-line with dominant global producers.” The broker responded by reiterating its speculative buy rating and lifting its price target to $28.00.

The post Why James Hardie, Mader Group, MMA Offshore, and WA1 shares are dropping today appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Mader Group. The Motley Fool Australia has positions in and has recommended Mader Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you bought ASX copper shares late in 2022, congratulations!

On 20 October 2022, the red metal was trading for US$7,550 a tonne.

Amid surging demand and limited new supplies, the copper price then rocketed to near all-time highs of US$10,890 on 20 May.

Now there aren’t many pure-play ASX copper shares to choose from. At least, not on the larger end of the market.

Back on 20 October 2022, Sandfire Resources Ltd (ASX: SFR) was the only S&P/ASX 200 Index (ASX: XJO) miner to really fit that bill.

Since then we’ve had dual-listed, Canadian-based Capstone Copper Corp (ASX:CSC) join the ASX on 8 April 2024.

But if you wanted to stick to established, copper focused miners on the ASX in 2022, Sandfire was the way to go.

And what a run it had.

From 21 October 2022 through to 20 May 2024, the Sandfire Resources share price soared 203%.

With copper prices having since retraced to US$9,786 a tonne today, the Sandfire Resources share price has fallen 13% since 21 May.

So are the good times over for ASX copper shares like Sandfire Resources and Capstone Copper?

Chinese inventories could hit ASX copper shares

Well, over the shorter term, ASX copper shares could face some bumps in the road amid fast-building copper inventories in China.

According to Bloomberg data, copper inventories in Chinese warehouses are at the highest levels in four years.

With China’s struggling property markets and tepid industrial sector, manufacturers have been delaying new purchases amid the historically high copper prices.

“If you’re a copper manufacturer in China, then you have every incentive to run down your own stockpiles and hold off buying from the market because demand is OK but not stellar and global prices have surged,” David Wilson, commodities strategist at BNP Paribas said (quoted by The Australian Financial Review).

And ASX copper shares could come under more selling pressure if prices for the red metal continue to slide, as some analysts are cautioning.

“China has hit a soft patch,” Daniel Smith, head of research at London metals brokerage AMT said. He added that the copper price “could go back down to $US9,000 per tonne,” if funds turn bearish on the outlook for the metal and begin to short it.

The bigger global picture

All commodities are subject to cyclical price moves.

While the copper price could well retrace to US$9,000 per tonne, as Smith suggested, ASX copper shares are still eyeing significant long-term demand growth for the red metal.

According to Bloomberg Intelligence’s global head of metals & mining, Grant Sporre, and senior analyst Rob Barnett:

Global copper consumption is likely to be 2 million tonnes higher by 2030, with over half from the US, as power-hungry AI fuels data-centre capacity growth.

Powering data centres via copper-intensive renewables and reshored manufacturing is set to spur US needs (stagnant for a decade), lifting worldwide demand to above-trend 2.7% to 3% annual growth.

Citi also remains bullish on the outlook for copper.

“Citi’s global commodity team continues to highlight copper as their top pick,” Citi analyst Paul McTaggart said last week.

The broker recently lifted its 2025 forecast for the copper price to US$12,000 per tonne.

If Citi has that right, ASX copper shares like Sandfire Resources could again deliver some market-smashing gains.

The post Uh-oh! Are ASX copper shares about to hit a speed bump? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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.