Category: Stock Market

The Santos Ltd (ASX: STO) share price is moving to greener pastures on Thursday after publishing its fourth-quarter report.

Shares in the oil and gas producer are inching 0.7% ahead to $7.67 as we head into the afternoon. While it may not be a monumental move, it beats today’s measly 0.27% gain from the S&P/ASX 200 Index (ASX: XJO).

However, Santos shares remain rangebound between $6.90 and $8.00. Roughly floating between these two price points, the energy major has failed to meaningfully break out of this range for a year and seven months.

Quarterly uptick bolsters Santos share price

Here are the main takeaways from the quarter ended 31 December 2023:

• Production of 91.7 million barrels of oil equivalent (MMboe) year-to-date 2023, down 11%
• Quarterly production up 1% to 23.4 MMboe versus the third quarter
• Quarterly sales volume up 5% to 25.3 MMboe
• Quarterly sales revenue up 3% to US$1.486 billion (A$2.26 billion)

The bulk of fourth-quarter revenue for Santos, like Woodside Energy Group Ltd (ASX: WDS), was derived from LNG sales. Approximately 63% of revenue came from liquefied natural gas, benefitting from increased volume and a slightly higher average realised price.

A modest increase in LNG prices helped offset a reduction in the average realised price for crude oil during the quarter. As shown in the table above, Santos saw its crude price slip from US$89.97 a barrel to US$88.04.

What did management say?

Commenting on the quarter, Santos managing director and CEO Kevin Gallagher said:

The fourth quarter brought free cash flow for the full year to $2.1 billion, an outstanding achievement in what has been a challenging year.

It positions us well to deliver shareholder returns, backfill and sustain our existing business, complete our major projects, Barossa and Pikka, progress our decarbonisation plans and grow our Santos Energy Solutions business.

Touching on the recent merger talks with Woodside Energy, Gallagher explained:

As previously announced, Santos is in early-stage discussions to evaluate the merits of a potential merger with Woodside. The parties have agreed to exchange information to assess the benefits for our shareholders. Santos continues to consider alternative options to accelerate value for shareholders. There is no certainty that any transaction will eventuate from these discussions.

Woodside CEO Meg O’Neill provided a similar statement in its quarterly report yesterday.

What’s next?

Santos confirmed its full-year 2023 guidance remains unchanged. Investors will be able to see all the nitty-gritty details when the energy giant publishes its results for the year on Wednesday, 21 February.

Meanwhile, guidance for 2024 showed an estimated reduction in production and sales volumes. While 2023 is expected to see 89 MMboe to 93 MMboe produced, management is mapping out 84 MMboe to 90 MMboe in 2024.

Likewise, sales volumes are forecast to slide from 90 MMboe to 100 MMboe down to 87 MMboe to 93 MMboe.

Santos share price snapshot

The Santos share price has struggled to outperform its peers or a benchmark index. Over the past five years, shares have risen 21.6% compared to the 27.7% gain from the S&P/ASX 200 Index (ASX: XJO).

Factoring in dividends, the return increases to 39.3%, still 19% behind the benchmark.

Based on the current Santos share price, the company trades on a price-to-earnings (P/E) ratio of 9.6 times. This is a notable premium to the industry average for the Australian oil and gas industry.

The post Santos share price rises on $2.3 billion revenue from ‘challenging year’ appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Woodside share price hesitant on $3.36 billion quarter
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• At under $31, should I be rushing to buy Woodside shares?
• Down 31%: Buy the dip on these ‘attractive’ ASX 200 dividend shares

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 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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Two S&P/ASX 200 Index (ASX: XJO) uranium shares are marching higher today, adding to the outsized gains they’ve already delivered to longer-term shareholders.

Namely leading uranium stocks Paladin Energy Ltd (ASX: PDN) and Boss Energy Ltd (ASX: BOE).

The Paladin Energy share price is up 0.3% at the time of writing in late morning trade on Thursday, trading for $1.24 a share. That sees the Paladin Energy share price up 52% since this time last year.

The Boss Energy share price is up 0.6% at this same time, trading for $5.50 a share. Investors who bought this ASX 200 uranium share 12 months ago will be sitting on enviable gains of 125%.

Both companies released their quarterly updates this morning.

Read on for the highlights.

ASX 200 uranium share Boss Energy reports on pivotal quarter

The Boss Energy share price is in the green after the company reported on a “pivotal quarter”.

Over the three months to 31 December, the ASX 200 uranium share generated its first production-grade uranium at its Honeymoon asset. The company also signed its first offtake agreement and completed its first international asset acquisition.

The Boss Energy share price has also enjoyed some heady tailwinds from soaring uranium prices, which topped US$100 per pound over the quarter.

Commenting on the company’s achievements, Boss Energy managing director Duncan Craib said, “It was an extremely pivotal quarter for Boss, which saw us achieve several major milestones on the path to becoming a substantial global uranium company.”

Craib added:

During the quarter, we also laid the foundations for more growth with the purchase of a 30% stake in the Alta Mesa project in Texas.

This project has many key similarities to Honeymoon and will enable us to diversify our production base on both a project and geographical basis while driving growth in our production and cashflow.

As at 31 December 2023, the ASX 200 uranium share had no debt, cash of $227 million and a uranium stockpile valued at $202 million, based on current spot prices.

Paladin Energy nearing commercial uranium production

Paladin Energy shares are also in the green at the time of writing after the ASX 200 uranium share reported that production activities had commenced. The first ore feed into its Langer Heinrich Mine processing plant took place post the reporting quarter, on 20 January.

The Langer Heinrich Mine restart project is now 93% complete, with final construction and ongoing commissioning activities continuing across the processing plant.

Management is still aiming for first commercial production by the end of the first quarter of 2024. However, they noted this may get pushed into the second quarter due to “lower contractor productivity over the Christmas / New Year period”.

Paladin Energy is now estimating total project capital costs of around US$125 million, up from the company’s prior estimate of US$118 million.

The company executed a US$150 million syndicated debt facility on 24 January to provide it with capital flexibility as it transitions through ramp-up and progresses to full production.

Commenting on the progress the ASX 200 uranium share made over the quarter, Paladin CEO Ian Purdy said:

After more than six years of care and maintenance it is exceptionally pleasing to see production activities recommence at the Langer Heinrich Mine, with first ore feed to the processing plant achieved in January.

As at 31 December, the ASX 200 uranium share had unrestricted cash of US$62 million.

The post Up 124% and 52% in a year, why are these 2 ASX 200 uranium shares gaining again today? appeared first on The Motley Fool Australia.

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More reading

• Buy ASX uranium shares now before ‘panic buying’ sets in, says expert
• Why Boss Energy, Cooper Energy, Judo Capital, and Polynovo shares are racing higher
• If I’d invested $20,000 in Boss Energy shares one month ago here’s what I’d have today
• Would I be crazy to buy Boss Energy shares at $5.50?
• Here are the top 10 ASX 200 shares 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 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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If you’re worried, or at least a little nervous, about retirement, I wouldn’t blame you. Contemplating the start of what could be decades of not working and not receiving the primary source of income we’ve all gotten used to in our working lives is a big adjustment to make.

It’s no small feat to set up your finances to ensure you don’t run out of money when you’re in your eighties or nineties.

In a recent survey, State Street Global Advisers found that just 20% of respondents in 2023 expected they would be able to save up enough to retire. That was down from 25% in 2022 as well. The vast majority (73%) of those surveyed cited inflation and cost of living pressures as the most relevant factor for their answer.

If you’re worried about retirement, investing in ASX shares before you reach retirement age could be the biggest favour you do yourself. Thanks to the effects of compounding, this favour will become more significant the earlier you get started.

Let’s assume someone who is 60 years old and wants to retire at the age of 65 invests $10,000 into ASX shares. If this investor manages to achieve a 10% rate of return (not a guaranteed return by any means) by reinvesting their dividends, they will have approximately $16,453 by the time they get to the age of 65. That’s decent. But probably not enough to make a big difference to their retirement prospects.

How to add years of enjoyment to your retirement

But instead, let’s assume that our investor puts that $10,000 into ASX shares at the age of 45 and lets it compound for 20 years. By the time they reach their retirement age goal of 65, that $10,000 will have grown into $73,281. Now we’re starting to see a difference in their retirement goals.

Let’s now assume that our investor puts $10,000 into ASX shares at the age of 25 and just leaves it until age 65. At this 10% rate of return, they will have around $537,000 by age 65. That’s enough to add years of enjoyment to a retirement.

These numbers show the exponential power of compounding if given enough time.

But if you’re past the age of 25, there are still some things you can do to speed up the compounding process. Let’s go back to our hypothetical investor who starts investing when they’re 45 years old.

By just ploughing $10,000 into ASX shares at age 45, they will end up with just over $73,000 by age 65, as we touched on earlier. But if this investor manages to find an extra $100 a month to invest, they can potentially double that final outcome to just under $150,000.

If they stretch even further and make it an extra $100 a week? They’d be looking at a potential $400,000 portfolio by the time they hit retirement age.

If our investor, who starts at age 25, came up with that $100 a week in extra investments, they would be sitting on a nest egg worth an astonishing $3.28 million.

Investing in ASX shares at any age can produce wealth-building effects. But those effects are magnified dramatically if we increase our periodic investments and time horizon. It’s more than enough to add years to a comfortable retirement at any age.

The post Worried about retirement? How investing $10,000 in ASX shares now could add years of enjoyment appeared first on The Motley Fool Australia.

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More reading

• Mineral Resources share price rockets 7% as lithium projects remain profitable
• Why Block, Domino’s, IDP Education, and Sayona Mining shares are sinking like stones today
• Why Incitec Pivot, Mineral Resources, Patriot Battery Metals, and ResMed shares are racing higher
• Tesla share price screeches 6% lower as vehicle growth hits speed bump
• Why is the Sayona Mining share price crashing 9% today?

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

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The Mineral Resources Ltd (ASX: MIN) share price is soaring higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock and diversified resources producer closed yesterday trading for $55.47. At the time of writing on Thursday morning, shares are swapping hands for $59.45 apiece, up 7.2%.

For some context, the ASX 200 is up 0.3% at this same time.

This comes following the release of Mineral Resources’ quarterly update for the three months ending 31 December.

Here are the highlights.

Mineral Resources share price lifts on profitable lithium outlook

Investors are bidding up the Mineral Resources share price after the ASX 200 miner reported improvements across most of its operating segments.

For the Mining Services division, the company reported a 9% quarter on quarter increase in production volumes to 72 million tonnes (Mt).

Mineral Resources iron ore shipments were also up 23% from the prior quarter, at 4.8 million wet metric tonnes (wmt). The miner received an average quarterly price of US$119 per dry metric tonne (dmt).

Management said that the company’s Onslow Iron project in Western Australia “is progressing at pace and expected to be delivered well within budget”. Mineral Resources is aiming for its first ore-on-ship from the project in June.

And the company noted that it “expects to introduce a partner to own a 49% interest in the Onslow Iron dedicated haul road this half to coincide with first ore on ship.”

As for its energy segment, gas drilling commenced over the quarter at Mineral Resources’ Lockyer-5 project in WA. This is expected to be developed as one of 10 production wells. Management plans to make a Final Investment Decision (FID) on the gas processing facility this quarter.

On the lithium front, ASX 200 investors may be bidding up the Mineral Resources share price after the company said that its Wodgina, Mt Marion and Bald Hill assets are all profitable at current lithium prices. That’s despite the massive fall in lithium prices over the past year.

Management forecasts that costs at Wodgina and Mt Marion will fall this year as stripping completes. They also noted that Wodgina lithium battery chemical production came in at 6,800 tonnes, with sales up 52% quarter on quarter to 6,500 tonnes.

The quarter also saw the ASX 200 miner finalise its acquisition of Bald Hill, assuming project control on 1 November 2023, which could offer a boost to the Mineral Resources share price over the longer term.

“Over this period, the mine produced 26k dmt of spodumene concentrate, with 20k dmt shipped,” according to the miner.

As for the balance sheet

The three months saw Mineral Resources complete a five-year US$1.1 billion Senior Unsecured Notes Offering at 9.25%. Management expects H1 2024 net debt to be between $3.47 billion and $3.61 billion.

FY 2024 volume and cost guidance remained unchanged for all its operations.

Mineral Resources share price snapshot

Despite today’s welcome lift, the Mineral Resources share price has some more lost ground to make up, with shares down 37% over the past 12 months.

The post Mineral Resources share price rockets 7% as lithium projects remain profitable appeared first on The Motley Fool Australia.

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More reading

• Why Incitec Pivot, Mineral Resources, Patriot Battery Metals, and ResMed shares are racing higher
• Here are the top 10 ASX 200 shares today
• Mineral Resources shares tumble 9% on unfavourable broker rating
• Why these ASX 200 shares could rise 20% to 50%
• Why I’d consider buying Mineral Resources shares to tap into Kali Metals

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to extend its winning run. The benchmark index is currently up 0.15% to 7,530.5 points.

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

Block Inc (ASX: SQ2)

The Block share price is down almost 6% to $94.99. This follows a similarly sharp decline by the payments company’s shares listed on the NYSE overnight. However, it remains unclear why they were sold off on Wall Street.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is down almost 30% to $40.28. Investors have been hitting the sell button today after the pizza chain operator released a trading update which fell well short of expectations. Domino’s preliminary half-year net profit before tax is expected to be between $87 million and $90 million. This misses the consensus estimate of $103 million by a decent margin.

IDP Education Ltd (ASX: IEL)

The Idp Education share price is down 3% to $19.50. This language testing and student placement company’s shares have come under pressure this week after Canada announced plans to limit foreign student visas in response to housing shortages. Student numbers will be down by approximately a third in 2024. This could be a blow to IDP Education’s operations in the country.

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price is down 7% to 4.1 cents. This morning, this lithium miner announced that it is undertaking an operational review of North American Lithium (NAL) operation. This review will focus on optimising its cost structure to manage cash flow and enhance financial sustainability. One positive is that management hopes to keep producing lithium through the cycle. The results of the review will be released by the end of the quarter.

The post Why Block, Domino’s, IDP Education, and Sayona Mining shares are sinking like stones today appeared first on The Motley Fool Australia.

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• Why is the Sayona Mining share price crashing 9% today?
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• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Domino’s Pizza Enterprises, and Idp Education. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and Idp Education. 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) is on course to end the week on a high. In afternoon trade, the benchmark index is up 0.3% to 7,539.3 points.

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

Incitec Pivot Ltd (ASX: IPL)

The Incitec Pivot share price is up 5% to $2.91. This morning, the agricultural and industrial chemicals company announced a $500 million return to shareholders. This comprises a $0.1557 per share equal capital reduction and an unfranked special dividend of $0.1017 per share. This return follows the sale of the Waggaman ammonia manufacturing facility in Louisiana to CF Industries Holdings Inc (NYSE: CF) at the end of last year.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is up 5% to $58.22. This follows the release of the mining and mining services company’s quarterly update. The highlight was the company’s iron ore shipments, which were up 23% quarter on quarter to 4.8Mt. This was achieved with an average quarterly realised price of US$119 per tonne. Management also revealed that its Wodgina, Mt Marion, and Bald Hill lithium operations are still profitable at current prices.

Patriot Battery Metals Inc (ASX: PMT)

The Patriot Battery Metals share price is up 11% to 82 cents. This morning, the lithium developer announced the appointment of Ken Brinsden as its new CEO. Brinsden previously took Pilbara Minerals Ltd (ASX: PLS) from the development phase to one of the world’s biggest lithium producers.

ResMed Inc. (ASX: RMD)

The ResMed share price is up 7.5% to $28.77. Investors have been buying this sleep treatment company’s shares after it released a second quarter update that smashed expectations. Goldman Sachs notes that that ResMed’s “EBIT/EPS beat +6%/+4% as gross margins improved further in 2Q (+90bps) and SG&A intensity declines once more.”

The post Why Incitec Pivot, Mineral Resources, Patriot Battery Metals, and ResMed shares are racing higher appeared first on The Motley Fool Australia.

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More reading

• This ASX 200 share is surging 5% after announcing a $500 million return to shareholders
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• 2 ASX 200 shares to buy in 2024 and hold for the next 10 years

Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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 market is punishing the Tesla Inc (NASDAQ: TSLA) share price in after-hours trading. Shares in the electric vehicle company are down 6% to US$195.38 following the posting of its fourth-quarter results.

While expectations were low heading into earnings, figures for the latest quarter fell below the forecasts. With the impacts of price cuts on full display, investors are deciding to put the selling pressure on.

The sliding price adds to a 16.4% decline in Tesla’s share price since the beginning of the year.

Price cuts slash Tesla share price

Wall Street analysts hoped to see total revenue of US$25.7 billion in Q4. The figure would represent a modest increase of 5.9% from the prior corresponding period. Instead, Tesla landed a lesser US$25.2 billion, growing the top line by 3% year-on-year.

The company’s total revenue can be broken into the following:

• Automotive revenues — US$21.56 billion, up 1%
• Energy generation and storage revenue — US$1.44 billion, up 10%; and
• Services and other revenue — US$2.17 billion, up 27%

Adding to the pain, Tesla’s gross margin weakened further to 17.6% compared to 23.8% a year ago. This margin softness has coincided with a significant fall in lithium prices — one of the major cost inputs in the company’s vehicles.

On a positive note, the operating margin moved in the right direction, improving to 8.2% from 7.6% in the previous quarter. Yet, the incremental improvement is not enough to electrify the Tesla share price today.

A couple of inhibitors to revenue were named in the presentation. Firstly, the reduced vehicle average selling price, a byproduct of several price cuts over the past year. And secondly, lower full self-driving revenue recognition.

Earnings were another disappointment for Wall Street, falling 40% to 71 US cents per share in Q4. Increased expenses associated with AI and research and development weighed on earnings. In addition, ramping up production of Tesla’s Cybertruck (pictured above) ate into profits.

Slower road ahead

Another deadweight hanging from the Tesla share price could be the commentary on vehicle production growth for 2024.

In the outlook, it was said, “In 2024, our vehicle volume growth rate may be notably lower than the growth rate achieved in 2023, as our teams work on the launch of the next-generation vehicle at Gigafactory Texas.”

Total production increased 35% to 1.845 million vehicles in 2023.

The post Tesla share price screeches 6% lower as vehicle growth hits speed bump appeared first on The Motley Fool Australia.

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More reading

• Automation era: Why I’m buying more Tesla shares despite margin decline

Motley Fool contributor Mitchell Lawler has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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 Sayona Mining Ltd (ASX: SYA) share price is having a tough finish to the week.

In morning trade, the lithium miner’s shares are down 9% to 4 cents.

Why is the Sayona Mining share price sinking?

Investors have been flooding to the exits today after the company announced an operational review of North American Lithium (NAL) operation in collaboration with its joint venture partner.

According to the release, the operational review is seeking to optimise NAL’s cost structure in response to rapidly changing conditions in the global lithium market.

The review will be focused on opportunities to reduce the operation’s cost base, manage cash flow, and preserve the Quebec-based operation’s financial sustainability in a challenging market environment.

Sayona Mining expects to complete the review by the end of the first quarter of calendar 2024 and will announce the outcome to its shareholders and other stakeholders.

Interim CEO, James Brown, revealed that the plan is to keep operating if possible. He said:

This review of our Quebec operations is focusing on reducing our cost base, enhancing productivity and improving Sayona’s ability to continue to produce lithium throughout the market cycle.

As the only operating hard rock lithium mine in North America, NAL is well positioned to remain a strategic source of lithium for the North American battery and EV market. While current market conditions are challenging, we are confident that the long-term outlook for lithium remains positive as the energy transition gains momentum and the shift to an electrified world continues.

In addition, as part of the review, the CEO of its Quebec subsidiary Sayona Inc, Guy Belleau, has departed his role with immediate effect after approximately one year at the helm.

Sayona Mining’s Chief Operating Officer for Quebec, Sylvain Collard, will assume direct management of these operations, reporting to Mr Brown in Australia.

The Sayona Mining share price is now down 86% over the last 12 months.

The post Why is the Sayona Mining share price crashing 9% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares
• Could the Sayona share price double in 2024?
• Why Chalice Mining, Nuix, Pilbara Minerals, and Sayona Mining shares are falling
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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.

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Incitec Pivot Ltd (ASX: IPL) shares are having a strong finish to the week.

In morning trade, the ASX 200 agricultural and industrial chemicals company’s shares are up 5% to $2.91.

Why is this ASX 200 share charging higher?

The catalyst for this strong gain has been news that Incitec Pivot is returning $500 million to shareholders.

This return follows the sale of the Waggaman ammonia manufacturing facility in Louisiana to CF Industries Holdings Inc (NYSE: CF) at the end of last year.

According to the release, the ASX 200 share intends to return the $500 million via two methods.

The first is a $0.1557 per share equal capital reduction, which equates to a total of approximately $302 million in aggregate.

The second is an unfranked special dividend of $0.1017 per share, which totals approximately $198 million.

Combined, this equates to a 25.74 cents per share return, which is the equivalent of an 8.8% return at current prices.

What’s next?

The company advised that it expects the Australian Taxation Office (ATO) to issue a Class Ruling following completion of the capital reduction and payment of the dividend.

It expects no part of the capital reduction should be treated as a dividend for Australian taxation purposes. Instead, subject to the ATO’s Class Ruling, the ASX 200 share expects that for shareholders who hold their shares on capital account for Australian income tax purposes, the cost base of each share will be reduced by $0.1557 per share for the purposes of calculating any capital gain or loss on the ultimate disposal of that share for Australian income tax purposes.

An immediate capital gain would arise for shareholders where their cost base of any share is less than $0.1557.

The Incitec Pivot Board also advised that it is satisfied that the capital reduction is fair and reasonable to shareholders as a whole and does not materially prejudice its ability to pay its creditors.

The post This ASX 200 share is surging 5% after announcing a $500 million return to shareholders 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.

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The Fortescue Metals Group Ltd (ASX: FMG) share price is marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining stock closed yesterday trading for $28.39. In morning trade on Thursday, shares are swapping hands for $29.01 apiece, up 2.2%.

For some context, the ASX 200 is up 0.4% at this same time.

Atop another 2.4% overnight lift in the iron ore price to US$135.15 per tonne, the Fortescue share price looks to be getting a boost from the company’s quarterly update for the three months to 31 December (Q2 FY 2024).

Fortescue share price gains on near-record iron ore shipments

The Fortescue share price is in the green today after the company reported 48.7 million tonnes (Mt) of iron ore shipments for the quarter.

This brought iron ore shipments to 94.6Mt for the first half of the 2024 financial year (H1 FY 2024). That’s the second highest first half-year shipment in the ASX 200 miner’s history.

Fortescue reported it received an average revenue of US$116/dry metric tonne (dmt) for its Pilbara Hematite (higher grade iron ore).

On the cost front, the miner’s Pilbara Hematite C1 cost (direct cost) was US$17.62/wet metric tonne (wmt) over the three months. This could be offering some tailwinds for the Fortescue share price, as C1 costs were 2% less than the prior quarter.

Other highlights of the quarter included the launch of Fortescue Capital, a green energy investment accelerator platform, which is headquartered in New York City.

And the ASX 200 miner shipped its first product from the Belinga Iron Ore Project in Gabon. That marked the first time Fortescue has exported iron ore from any port outside of Australia.

Turning to the balance sheet, Fortescue’s cash balance was US$4.7 billion at 31 December 2023. That’s up from US$3.1 billion at 30 September 2023.

Total capital expenditure and investments for the quarter came in at US$759 million, bringing total capital expenditure and investments for H1 FY 2024 to US$1.5 billion.

Net debt fell to US$600 million from US$2.2 billion on 30 September 2023.

What did management say?

Commenting on the results that look to be supporting the Fortescue share price today, CEO Dino Otranto said:

We continue to deliver strong operational performance while making tangible progress towards our ambitious decarbonisation and green energy targets…

Demand for Fortescue’s suite of iron ore products remains strong and our entry into the higher-grade segment of the market through Iron Bridge has been well received with our second magnetite shipment during the quarter…

Our energy business marked a significant milestone, with final investment decisions announced for green hydrogen projects in Australia and the USA.

What’s ahead for the ASX 200 miner?

Looking at what could impact the Fortescue share price in the months ahead, the ASX 200 miner maintained its guidance for FY 2024 total shipments of 192Mt to 197Mt.

It expects C1 cost for Pilbara Hematite of US$18 to US$19/wmt, slightly higher than the quarter just past.

Metals capital expenditure is forecast to be in the range of US$2.8 billion to US$3.2 billion.

And Fortescue forecasts energy net operating expenditure of around US$800 million, with capital expenditure and investments of some US$500 million.

Fortescue share price snapshot

With today’s lift factored in, the Fortescue share price is up an impressive 29% over the past 12 months.

Shares have gained 31% over the past three months.

The post Fortescue share price lifts off amid near-record iron ore shipments 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.

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