Category: Stock Market

When one steps back from the excitement, it’s hard not to think of the current ASX share market as a greedy one. After all, the S&P/ASX 200 Index (ASX: XJO) has appreciated by over 15% since the beginning of November last year and hit several new all-time highs in the process.

It’s normal for the markets to occasionally hit new highs of course. But it is not normal for the ASX 200 to gain over 15% in just five months or so. In fact, it’s unusual to see that kind of rise over an entire year.

Unfortunately, analysts at Macquarie believe that these gains are unlikely to last. As reported in the Australian Financial Review (AFR), Macquarie strategists Matthew Brooks and Sophie Bolton have built a new FOMO (fear of missing out) Meter, which is designed to gauge investor sentiment on the US markets, and whether it is being overly influenced by emotional whims. That would be fear or greed.

This Meter is reportedly constructed using seven different indicators, including the VIX volatility index and measuring how many stocks on the S&P 500 Index are above their 200-day moving averages.

Their verdict of the current market is sobering: “We continue to believe that sentiment needs to cool a little and that investors should wait for a correction before rotating more to risk”.

They go on to point out that this might mean that US returns from shares will be “below average” and that ASX shares could deliver a “slightly negative return”.

Defensive ASX shares for a greedy market

Brooks and Bolton have a potential solution for this conundrum: focus on defensive ASX shares. Pointing out that sectors like tech stocks and consumer discretionary shares tend to rise and fall alongside investor sentiment, the analysts instead recommend investors look to more defensive plays while the market is still hot.

They have four shares in mind for this endeavour. The analysts name packaging and logistics company Brambles Ltd (ASX: BXB), grocer Coles Group Ltd (ASX: COL), healthcare stock ResMed Inc (ASX: RMD) and real estate investment trust (REIT) Goodman Group (ASX: GMG).

Brooks and Bolton point out that these four stocks reported positive earnings during the recent reporting season, and all currently enjoy outperform ratings from Macquarie.

They also suggest that investors might want to take a look at Woolworths Group Ltd (ASX: WOW), Telstra Group Ltd (ASX: TLS), Endeavour Group Ltd (ASX: EDV) and Orora Ltd (ASX: ORA) as more “adventurous” defensive ASX shares.

So an interesting insight from these Macquarie analysts. It will be interesting to see if these FOMO Meter predictions are indicative of what happens next on the share market. As with all investing forecasts, they will only be obvious in hindsight

The post 4 defensive ASX shares to own in a greedy market: Macquarie appeared first on The Motley Fool Australia.

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More reading

• Buy Coles and this ASX 300 dividend share
• Here are the top 10 ASX 200 shares today
• 3 Australian shares quietly crushing the ASX today
• $2.1 million! Who are the highest paid ASX 200 directors?
• 2 things I’m waiting for before buying Coles shares

Motley Fool contributor Sebastian Bowen has positions in Endeavour Group and Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Macquarie Group, and ResMed. The Motley Fool Australia has positions in and has recommended Coles Group, Macquarie Group, ResMed, and Telstra Group. The Motley Fool Australia has recommended Goodman Group and Orora. 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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With so many shares to choose from on the ASX, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

ALS Ltd (ASX: ALQ)

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $13.70 price target on this testing services company’s shares. This follows news that ALS is acquiring the remaining 51% in the Nuvisan business that it does not already own for nil cost. It notes that ALS previously had a call option to acquire the remaining stake for 13x the adjusted EBITDA. In addition, the broker notes points out that ALS now expects its earnings to be at the low end of its guidance range in FY 2024. Nevertheless, it remains positive. The ALS share price is trading at $12.86 today.

Sims Ltd (ASX: SGM)

A note out of UBS reveals that its analysts have upgraded this scrap metal company’s shares to a buy rating with an improved price target of $14.50. The broker is feeling more positive thanks to improving scrap metal prices. And with its shares trading at a discount to book value despite these improvements, the broker feels now is the time to invest. It has also upgraded its earnings estimates to reflect higher margin assumptions. The Sims share price is fetching $12.21 this afternoon.

Webjet Ltd (ASX: WEB)

Another note out of UBS reveals that its analysts have retained their buy rating on this online travel agent’s shares with an improved price target of $10.00. This follows the release of an update on the WebBeds business last week. The broker believes that the company is well-positioned to accelerate its growth through the use of big data and artificial intelligence. In fact, UBS believes the company can grow quicker than the market is currently pricing in. The Webjet share price is trading at $8.94 on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• Why Fortescue, Gold Hydrogen, MMA Offshore, and Sims shares are pushing higher
• Why ALS, EOS, NRW, and Patriot Battery Metals are dropping today
• Top brokers name 3 ASX shares to buy next week
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy now

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 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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According to the pundits of yesteryear, S&P/ASX 200 Index (ASX: XJO) energy shares focused solely on renewables should be leading the charge by now.

And coal stocks like New Hope Corp Ltd (ASX: NHC) and Whitehaven Coal Ltd (ASX: WHC) should have been relegated to the history books.

The reality, however, is playing out quite differently.

Although significant progress has been made in the transition to solar, wind and hydro power, the truth is that global demand for the reliable baseload power provided by fossil fuels is resilient.

Here’s what’s happening.

ASX 200 energy shares lengthy lifeline

The bulk of the booming demand for coal that could unexpectedly see these two ASX 200 energy shares burn brighter over the medium term comes from China, India and Indonesia.

All three countries brought new coal-fired power plants online over the past year. And all three are still constructing more.

That’s particularly important because together the three nations have a staggering population of some 3.2 billion people. Or some 123 times the population of Australia.

Indeed, coal consumption in China, which mines and burns half the world’s coal, hit a record high in 2022 before soaring 5.6% in 2023 to post another all-time high.

According to the International Energy Agency (IEA), global coal output reached new all-time highs in 2023 as well. And coal continues to provide more than 30% of the world’s electricity needs.

This has helped stabilise thermal coal prices at around US$130 per tonne, up from US$116 per tonne in late February this year.

While far below the record levels of US$440 per tonne reached in September 2022, that’s still well above the costs New Hope and Whitehaven pay to dig up and ship their coal. And it’s higher than any time between 2011 and 2020.

Commenting on the booming demand from Asia that could offer ASX 200 energy shares sustained support, New Hope’s CEO Rob Bishop said (courtesy of Bloomberg), “You look at Asia, the demand and the build out of coal-fired power plants, particularly in India – coal’s not going anywhere anytime soon.”

And like oil and gas, Bishop said coal remains vital in the long-running global transition to low-emissions energy.

“We see that the world needs more operators to mine coal and support the transition over many decades to come,” he said.

As for ASX oil and gas stocks

It’s a similar story for ASX 200 energy shares drilling for oil and gas, like Woodside Petroleum Ltd (ASX: WDS) and Santos Ltd (ASX: STO).

According to data released by China’s National Bureau of Statistics last week (quoted by Bloomberg), Chinese oil consumption increased 9.1% year on year in 2023. And gas consumption was up 7.2%.

The post How these ASX 200 energy shares could unexpectedly burn brighter appeared first on The Motley Fool Australia.

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More reading

• 2 of the best ASX 50 shares to buy now
• 5 things to watch on the ASX 200 on Monday
• Buy Westpac and this ASX dividend giant
• Top ASX shares to buy instead of a term deposit in March 2024
• ASX energy shares losing charge amid fresh warnings of gas supply shortfalls

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 S&P/ASX 200 Index (ASX: XJO) has started the week positively. In afternoon trade, the benchmark index is up 0.5% to 7,811.3 points.

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

Fortescue Ltd (ASX: FMG)

The Fortescue share price is up 3% to $25.40. This may have been driven by news that the mining giant’s recently deployed electric excavator has now moved one million tonnes of material since going into action. Importantly, management advised that at times the electric excavator was performing better than its diesel equivalent.

Gold Hydrogen Ltd (ASX: GHY)

The Gold Hydrogen share price is up 14% to $1.47. This morning, this natural hydrogen and helium exploration and development company announced strong results from its Ramsay 1 and Ramsay 2 well testing. According to the release, the test confirmed up to 17.5% purity for helium, which ranks amongst the highest purity levels globally.

MMA Offshore Ltd (ASX: MRM)

The MMA Offshore share price is up 11% to $2.61. This follows news that the marine service provider has received and accepted a takeover offer. According to the release, the company has entered into a binding scheme implementation deed with Cyan MMA Holdings for the proposed acquisition of all its shares via a scheme of arrangement. The board unanimously recommends shareholders vote in favour of the $2.60 cash per share offer at the scheme meeting. Though, with its shares now trading above the offer price, it’s possible that some investors believe a competing bid will materialise.

Sims Ltd (ASX: SGM)

The Sims share price is up almost 3% to $12.22. This morning, analysts at UBS upgraded the scrap metal company’s shares to a buy rating with an improved price target of $14.50. The broker believes that its outlook is improving and highlights the discount its shares trade at compared to book value.

The post Why Fortescue, Gold Hydrogen, MMA Offshore, and Sims shares are pushing higher appeared first on The Motley Fool Australia.

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More reading

• Fortescue share price leaps 5% as electric machinery makes a milestone
• Guess which ASX 300 stock is rocketing 10% on a $985 million cash bid!
• Here’s how the ASX 200 market sectors stacked up last week
• Are dividends your thing? Then you’ll love these 2 high-yield ASX shares
• Is the worst of the selling now over for ASX iron ore shares?

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 recommended Mma Offshore. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. At the time of writing, the benchmark index is up 0.6% to 7,819.2 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

ALS Ltd (ASX: ALQ)

The ALS share price is down over 6% to $12.85. This morning, the testing services company announced an agreement to acquire the remaining 51% interest in Nuvisan for zero cost. It is a European-based contract research organisation with two distinct and separable entities, Nuvisan GmbH focused on pre-clinical and clinical development services, and ICB focused on drug discovery services. It generated revenues of ~A$245 million in calendar year 2023. The market doesn’t appear keen on the deal.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is down 18% to $1.70. This follows the completion of the space and defence systems company’s institutional placement. It raised $35 million from investors at a discount of $1.70 per new share. The company will now push ahead with a $5 million share purchase plan at the same price. These funds will be used to support future sales growth in key global markets.

NRW Holdings Limited (ASX: NWH)

The NRW Holdings share price is down 3% to $2.84. This has been driven by the diversified contract services provider’s shares going ex-dividend this morning for its upcoming dividend. Eligible shareholders can look forward to receiving its 6.5 cents per share fully franked dividend next month on 11 April.

Patriot Battery Metals Inc. (ASX: PMT)

The Patriot Battery Metals share price is down 3% to 88.5 cents. This is despite the lithium explorer announcing the discovery of a new spodumene pegmatite occurrence at the Corvette project in Canada. Management commented: “The discovery highlights the extensive nature of the spodumene mineralized system along the CV Lithium Trend, which extends across the Property where a large portion remains unexplored for lithium pegmatite.”

The post Why ALS, EOS, NRW, and Patriot Battery Metals are dropping today appeared first on The Motley Fool Australia.

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More reading

• Guess which high-flying ASX All Ords stock is crashing 19% today
• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Popular ASX All Ords shares with ex-dividend dates next week
• Up 102% in 2024, here’s why this ASX All Ords stock is now frozen

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 Electro Optic Systems. 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 Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular exchange-traded fund (ETF) on the ASX. In this article, we’re going to look at if it’s feasible for someone to have a comfortable retirement owning VAS ETF units.

Owning ETFs can be very useful because they can provide useful diversification in a single investment.

The Vanguard Australian Shares Index ETF gives investors exposure to the S&P/ASX 300 Index (ASX: XKO), which are 300 of the biggest businesses listed in Australia. Its biggest five positions make up 32% of the portfolio. They are: BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC).

Can VAS ETF fund a comfortable retirement?

The fund certainly ticks the diversification box. In terms of dividend income, the VAS ETF receives dividends over 12 months, and it distributes the money it has received every quarter.

According to Vanguard, the ETF currently has a dividend yield of 3.9%. This excludes the benefit of franking credits, which could be an after-tax bonus for some retirees. I’m not going to include it as a benefit in this article because everyone’s tax positions are different – the franking credits may be needed to offset tax charged by the ATO.

According to the AFSA Retirement Standard, a retired couple aged between 65 to 84 years old currently needs $72,148.19 per annum for a comfortable retirement, while a single person needs $51,278.30.

At a dividend yield of 3.9%, a couple would need $1.85 million invested in the VAS ETF while a single person would need $1.31 million invested. If investors can benefit from franking credits, and see minimal (or no) taxes, then those balance requirements would be lower.

Foolish takeaway

The VAS ETF is a good investment choice, with very low management fees. However, I think it’s worthwhile considering global shares to be part of a portfolio mix because of the stronger growth potential.

There are ASX dividend shares out there that can pay bigger dividend yields, which is the type of investment I like to regularly look at.  

The post How much would I need invested in the Vanguard Australian Shares ETF (VAS) for a comfortable retirement? appeared first on The Motley Fool Australia.

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More reading

• Here are the next distribution dates for your Vanguard ETFs
• If you own the Vanguard Australian Shares ETF (VAS), make sure you’re doing this
• 5 ASX ETFs to buy and hold for 10 years
• Selling your investment property due to land tax hikes? 5 ASX shares I’d buy with the proceeds
• Buy these ASX ETFs for a second income

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

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The S&P 500 Index (SP: .INX) has had a stellar run over the past 12 months.

Since this time last year, the benchmark US index has soared 31.6%, closing down 0.1% on Friday at 5,234 points.

Spurred by strong earnings results amid a resilient US economy alongside investor exuberance over pending interest rate cuts from the US Federal Reserve as inflation comes off the boil, the S&P 500 has notched a series of new record highs this year.

It’s a similar story with the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC). And, here in Australia, with the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 is up 0.4% in afternoon trade today at 7,804.4 points. That puts the Aussie benchmark index within striking distance of surpassing the 8 March all-time closing high of 7,847.0 points.

Turning back to US markets, here’s what Goldman Sachs says could send the S&P 500 soaring another 15% in 2024.

More big gains for the S&P 500 ahead?

To be clear, Goldman Sachs’ base case remains for the S&P 500 to close the calendar year right around current levels, at 5,200 points.

But Goldman’s analysts also foresee the possibility that ongoing investor exuberance with artificial intelligence could see the big tech stocks propel the index to 6,000 points by the end of 2024.

Or 14.6% above current levels.

According to Goldman’s analysts (quoted by Bloomberg), “Although AI optimism appears high, long-term growth expectations and valuations for the largest TMT [technology, media, and telecom] stocks are still far from ‘bubble’ territory.”

The broker also noted that the resilient US economy and potential Fed rate cuts have already been fully priced into the markets.

In order for the US benchmark index to soar to 6,000 points by year end then, they said, “A shift in the interest rate outlook without a deterioration in the economy is necessary for the market rally to broaden.”

An ASX share to mirror the US stock market performance

ASX investors looking to track the performance of the S&P 500 without buying all those stocks may want to run their slide rule over the SPDR S&P 500 ETF Trust (ASX: SPY).

The ASX-listed exchange-traded fund (ETF) provides investors with exposure to 500 of the largest US-listed companies. SPY aims to track the performance returns of the benchmark. And it comes with low management costs of just under 0.10% per year.

Over the past 12 months, the ETF has gained 33.7%.

As always, before you invest a single dollar in SPY or any other ASX share, be sure to do your own thorough research.

If you’re uncomfortable with that, or just don’t have the time, reach out for some expert advice.

The post Up 32% in a year, here’s why Goldman says the S&P 500 could soar another 15% in 2024 appeared first on The Motley Fool Australia.

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More reading

• If I were Warren Buffett, I’d buy these ASX shares in a heartbeat
• These ASX 200 mining stocks could rise 40% to 50%
• Fortescue share price leaps 5% as electric machinery makes a milestone
• Own CBA shares? Here’s the tech stock the banking giant just invested in
• Why are these ASX tech shares getting smashed today?

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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I consider Warren Buffett as one of the greatest investors the world has ever seen. He has shown a love and preference for American companies over his lifetime, but I think there are a few ASX shares he’d definitely want to own if he hunted here.

There are a number of traits that the investing legend looks for, such as a good valuation, honest and hardworking management, appealing potential to put more money to work within the business at a high rate of return, and that these businesses are in industries he understands.

A lot of share prices have risen recently, so it’s a bit harder to find value. However, Buffett has said a number of times that he would rather buy a wonderful business at a fair price rather than a fair business at a wonderful price.

Below are the three ASX shares I think Warren Buffett would love to own.

Premier Investments Limited (ASX: PMV)

Premier Investments is an ASX retail share that owns a number of brands including Smiggle, Portmans, Just Jeans, Peter Alexander, Jay Jays, Jacqui E and Dotti.

The company also owns investments in two other ASX companies – Breville Group Ltd (ASX: BRG) and Myer Holdings Ltd (ASX: MYR).

The two brands I really like within the portfolio are Smiggle and Peter Alexander.

Smiggle sells school-related items such as lunchboxes, drink bottles, bags, stationery and so on. Some of the current brands it’s working with include Jurassic Park, AFL, Spider-Man, Minecraft, Barbie and Mickey and Minnie.

Now that the COVID-19 impacts on schools have dissipated, the growth potential of Smiggle has returned to normal.  

The company is planning a lot of international growth for Smiggle and Peter Alexander. I think store growth can be a big driver of earnings in the coming years, so the company has a promising outlook, in my opinion. Smiggle can expand in numerous countries.

A bonus could be if the business’ strategic review manages to unlock value for shareholders.

According to Commsec, the Premier Investments share price is valued at 24 times FY24’s estimated earnings.

Beacon Lighting Group Ltd (ASX: BLX)

Beacon Lighting is best known for its stores across Australia, which has tailwinds like population growth in Australia. Any interest rate cuts this year could be a boost for demand.

One the things that excites me most about this business is its international growth. Australia is a great country, but the global population is much bigger – tapping into this addressable market is compelling. It has offices in Hong Kong, mainland China, the USA and Germany. In 2023 it made sales to customers from 45 countries.

It’s looking to build trade and commercial partnerships, growing its sales to business customers. The ASX share would also like to expand its store network and grow its e-commerce sales.

According to the projection on Commsec, the Beacon Lighting share price is valued at 20 times FY24’s estimated earnings.

Wesfarmers Ltd (ASX: WES)

Wesfarmers owns a number of Australis’s leading retailers including Bunnings, Kmart and Officeworks. Other businesses it operates include Target, Catch and Priceline.

I think Warren Buffett would definitely want a piece of Wesfarmers. The company has proven to be a long-term performer, with a track record of making good decisions for shareholders and generating a good return on equity (ROE).

Berkshire Hathaway has built up a diversified portfolio of businesses, and Wesfarmers is diversified too. Wesfarmers is expanding into areas like healthcare and lithium. The more growth avenues the company has, the more choices it has to invest in the best-returning option.  

According to the estimate on Commsec, the Wesfarmers share price is valued at 30 times FY24’s estimated earnings.

The post If I were Warren Buffett, I’d buy these ASX shares in a heartbeat appeared first on The Motley Fool Australia.

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More reading

• How a potential demerger could deliver a 10% upside for this ASX 200 stock
• How many Wesfarmers shares must I buy to get $100 in monthly passive income?
• 2 ‘very high-quality’ ASX retail shares with significant inside ownership
• If I’d put $5,000 in Wesfarmers shares at the start of 2024, here’s what I’d have now
• If you’d put $1m into shares vs property at the start of COVID, how much would you have now?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway and Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Berkshire Hathaway and Premier Investments. 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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If you’re not against investing in the mining sector and you are looking for some big potential returns for your portfolio, then read on.

That’s because listed below are a couple of ASX 200 mining stocks that have not only been named as buys but tipped to rise 40% to 50% from current levels.

That means that if these analysts are on the money with their recommendations, a $20,000 investment could turn into $28,000 to $30,000.

Let’s see what they are saying about these ASX 200 mining stocks:

Arcadium Lithium (ASX: LTM)

This beaten down lithium miner’s shares could be a bargain buy according to Bell Potter.

The broker currently has a buy rating and $10.40 price target on its shares. This implies potential upside of approximately 53% for investors from where they trade today.

The broker is a big fan of the lithium chemicals company due to its diversified exposure to lithium, growth portfolio, and strong balance sheet. It believes this leaves it perfectly positioned to benefit when the lithium price rout is over. Its analysts explain:

LTM provides the largest, most diversified exposure to lithium in terms of mode of upstream production, asset locations, downstream processing and customer markets. It is a key large-cap leverage to lithium prices and sentiment, which we expect to improve over the medium term. The group has a strong balance sheet and growth portfolio.

Regis Resources Ltd (ASX: RRL)

Another ASX 200 mining stock that has been tipped to rise very strongly is gold miner Regis Resources.

Despite the gold price recently hitting a record high, Regis Resources shares remain closer to their 52-week low than their 52-week high.

Bell Potter also sees this as a buying opportunity for investors, particularly given its growth opportunities, its Australia-based operations, and its M&A appeal. It said:

As one of the largest ASX listed gold producers, we are attracted to its all- Australian asset portfolio and organic growth options which are unique at this scale. Furthermore, we see key opportunities in the fundamental, medium-term outlook and, in our view, these may also make RRL an appealing corporate target in the current conducive M&A environment.

Bell Potter has a buy rating and $2.60 price target on the miner’s shares. If this proves accurate, it will mean a return of approximately 41% over the next 12 months for investors from current levels.

The post These ASX 200 mining stocks could rise 40% to 50% appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Broker names 2 of the best ASX mining shares to buy (with 40% to 50% upside)
• 5 things to watch on the ASX 200 on Tuesday
• Why are ASX lithium shares being annihilated on Friday?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor James Mickleboro owns Arcadium Lithium shares. 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 Fortescue Metals Group Ltd (ASX: FMG) share price is leaping higher on Monday.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed Friday trading for $24.64. In morning trade shares were swapping hands for $25.96, up 5.4%.

At the time of writing, shares are trading for $25.65, up 4.1% for the day.

The strong performance comes despite a dip in the iron ore price over the weekend, with the industrial metal slipping 1.6% to US$108.05 per tonne.

And the Fortescue share price is racing ahead of rival ASX 200 miners BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO). BHP shares are up 0.8% and Rio Tinto shares are up 0.9% at this same time.

This comes following the announcement of a million tonne milestone in Fortescue’s sustainable mining transition.

Fortescue share price charges higher as low emissions mining takes form

Digging up a million tonnes of ore without belching out clouds of diesel smoke?

Yep, that’s what Fortescue has just achieved at its Chichester iron ore operations, located in Western Australia.

In a press release on Friday that could be helping boost the Fortescue share price today, the ASX 200 miner reported its recently deployed electric excavator has now moved one million tonnes of material since going into action.

Initially operating at partial capacity, it’s now full speed ahead for the electric excavator.

Management reported that at times the excavator was performing better than its diesel equivalent. The miner says the focus now is to ensure consistent performance from the machine.

“This is such an exciting milestone for Fortescue and our decarbonisation journey,” CEO Dino Otranto said of the development which may be helping spur the Fortescue share price today.

And there’s more to come.

According to Otranto:

We will have two additional electric excavators commissioned by the end of April. Once we decarbonise our entire fleet, around 95 million litres of diesel will be removed from our operations every year, or more than a quarter of a million tonnes of carbon dioxide equivalent.

The excavator has been running partially off solar and is powered by a 6.6kV substation and more than two kilometres of high-voltage trailing cable. 

Fortescue’s 240-tonne battery electric haul truck prototype, Roadrunner, is also progressing towards full field work.

“Roadrunner recently completed its first phase of testing which exceeded the performance expectations of the battery power system,” Otranto said.

Copper expansion options

Separately, ASX 200 investor interest may have been sparked by Fortescue founder Andrew Forrest’s speculation of pending copper acquisitions.

Speaking in Beijing over the weekend, Forrest told Reuters (courtesy of Mining.com), “The company has choices in front of it … we have a lot of copper options on the table. And when we feel the time is right, we’ll pull the trigger.”

The Fortescue share price is up 26% since this time last year.

The post Fortescue share price leaps 5% as electric machinery makes a milestone appeared first on The Motley Fool Australia.

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More reading

• Here’s how the ASX 200 market sectors stacked up last week
• Are dividends your thing? Then you’ll love these 2 high-yield ASX shares
• Is the worst of the selling now over for ASX iron ore shares?
• I’d spend $5k on these ASX 200 shares today to target a $13,080 passive income
• Forget Fortescue and buy this iron ore share for a 33% return

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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