Category: Stock Market

When it comes to the Woodside Energy Group Ltd (ASX: WDS) share price, oil prices tend to have a big impact on whether its rises or falls.

In light of this, before buying the energy producer’s shares in 2023, it could be worth thinking about where oil prices could be heading.

The good news for investors is that one hedge fund trader believes oil prices could be destined to climb materially in the near future.

Oil prices tipped to rise

According to Bloomberg, hedge fund trader Pierre Andurand believes that global oil demand could increase as much as 4 million barrels or 4% in 2023 if the world fully emerges from COVID restrictions.

This compares to the International Energy Agency estimate for a 1.7 million increase in demand this year.

Andurand, whose main commodities fund gained about 50% last year, believes that this could lead to oil prices climbing to “upwards of US$140 a barrel once Asia fully reopens, assuming there will be no more lockdowns.” Particularly given that jet fuel demand is still down 2.5 million barrels a day from 2019 levels because China has not reopened fully yet.

Overall, the hedge fund trader feels the market is “underestimating the scale of the demand boost” that the COVID reopening would have for oil consumption and ultimately prices.

As a comparison, the WTI crude oil price is currently fetching US$74.47 a barrel and the Brent crude oil price is trading at US$79.42 a barrel. Based on the former, this means that oil prices could rise approximately 90% in 2023.

This would undoubtedly bode well for the Woodside share price if it happened. Especially given that the company was operating with a production cost of US$7.60 per barrel during the first half.

Should you buy Woodside shares?

According to a note out of Citi, its analysts have put a buy rating and $38.50 price target on Woodside shares.

This implies potential upside of 10% for investors over the next 12 months. In addition, the broker is expecting a hefty 9.8% dividend yield in FY 2023, bringing the total potential return to almost 20%.

The post Looking to buy Woodside shares? Trader says oil price has 90% upside appeared first on The Motley Fool Australia.

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More reading

• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?
• Bought $1,000 of Woodside shares 10 years ago? Here’s how much dividend income you’ve received
• 5 things to watch on the ASX 200 on Monday
• How are ASX 200 energy shares tracking in the first week of trade?
• 3 key factors that helped propel the Woodside share price 60% higher in 2022

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 Limited (ASX: FMG) share price looks set to snap its three-day green streak today.

Shares in the Australian iron ore miner have rallied by 28% during the last six months. However, the company chaired by Andrew ‘Twiggy’ Forrest is losing steam on Monday despite a rather peachy performance across the materials generally.

As we head into the afternoon, the materials corner of the market is holding out as the best-performing sector. At present, the sector is 1.42% above its previous close. Meanwhile, the Fortescue share price is 0.8% underwater at $21.63.

Management maketh the company

Today’s Fortescue share price weakness could be explained by an announcement that the company made earlier today. According to the release, the company’s chief financial officer (CFO), Ian Wells, has put forward his resignation.

Wells has served as group CFO since 2018, overseeing a period of significant earnings growth and shareholder returns. Between June 2018 and now, the Fortescue share price has increased by approximately 390% and earnings have grown by seven-fold.

Commenting on the departure of Wells, Fortescue chair Andrew Forrest said:

I recall fondly back in 2010 when Ian joined our team. The finance team at the time were charged with refinancing our original project finance bonds and the successful refinancing in 2010 enabled the company to make investments to expand capacity to 155mtpa.

Since then, we have seen the company’s balance sheet and capital allocation change from debt repayment to reinvestment and delivering market-leading shareholder returns …

The respected member of the leadership team is stepping away from Fortescue to explore other opportunities. With a finish date of 31 January, the company is already underway with finding and selecting a successor to Wells.

Fortescue share price under scrutiny

Shareholders could be growing concerned about what appears to be a trend at this point. Ian Wells’ exit is yet another in a series of senior outflows — joining Linda O’Farrell, Greg Lilleyman, Don Hyma, and former CEO Elizabeth Gaines to name a few.

At this point, only two out of the 13 executive leadership members displayed in Fortescue’s 2021 annual report are still on board.

The company trades on a price-to-earnings (P/E) ratio of 7.4 based on the current Fortescue share price. For reference, this is roughly in line with peers like Rio Tinto Limited (ASX: RIO) and slightly below BHP Group Ltd‘s (ASX: BHP) 8.1 earnings multiple.

The post Why is the Fortescue share price lagging the ASX 200 materials sector today? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 iron ore shares jumping higher today?
• Will 2023 get better for ASX 200 shares?
• Guess how much a $20k investment in these ASX 200 shares in 2013 is worth now
• Fortescue share price bulls vs bears: Which will prevail in 2023?
• My 3 top-performing ASX shares of 2022, and why I’m still buying 2 of them for 2023

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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The S&P/ASX 200 Index (ASX: XJO) coal shares have seen plenty of gains over the past year. But, there’s a chance that things could get even better based on news coming out of China.

As a reminder, some of the strongest performers over the past 12 months within the ASX 200 have been the share prices of New Hope Corporation Ltd (ASX: NHC) and Whitehaven Coal Ltd (ASX: WHC).

What could power ASX 200 coal shares higher?

According to reporting by Reuters, China Energy Investment Corp has placed an order to import Australian coal. China had supposedly put an unofficial ban on Australian coal imports since 2020.

China is reportedly trying to meet higher demand for power consumption after COVID-related restrictions have been eased. Coal is one of the energy sources that are in demand.

Reuters reported that Australia was China’s second-largest coal supplier before that unofficial ban, with a quarter of Australian exports going to the Asian superpower in 2019. But, there may not be an immediate shift, as power plant inventories in the country are now reportedly high. Reuters quoted a Chinese utilities official who said:

Australian thermal coal is of better quality and is expensive. Chinese utilities may hence be less keen to buy.

Will it definitely help?

No one can know for sure how impacts to the global supply, demand and trade of coal will affect things.

While the entry of Australian coal into China is expected to challenge the market share of Russia in the country, one trader that Reuters quoted suggested that it could push down on prices:

Entry of Australian coal into Chinese markets could ease coking coal prices, which are currently on the higher side.

Coal prices are currently much higher than they were a year ago. But Europe is seeing such warm temperatures that it’s currently breaking records. For example, Bilbao in Spain reached 25C just over a week ago, which was more than 10C higher than average. Does warmer weather mean less coal demand over the rest of the European winter? Time will tell.

Big dividends expected

With the profits that New Hope and Whitehaven are producing, Commsec numbers suggest they will pay their shareholders significant dividends.

New Hope could pay a grossed-up dividend yield of around 40% in FY23.

Whitehaven could pay a grossed-up dividend yield of around 16% in FY23.

However, both businesses are expected to start reducing their dividends from FY24 onwards.

The post Could this put another rocket under the price of ASX 200 coal shares? appeared first on The Motley Fool Australia.

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More reading

• This ASX 200 coal share is up 170% in a year. But one director is still buying
• These 3 ASX 200 coal shares posted the biggest gains of 2022
• The 3 best performing ASX 200 dividend shares of 2022
• Is China about to reignite ASX 200 coal shares?
• These are the highest-yielding ASX 200 dividend shares right 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 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 kicked off the trading week with a pleasing gain. At the time of writing, the ASX 200 has lifted by a healthy 0.98%, putting the index at just under 7,180 points. But let’s talk about five ASX 200 mining shares that are doing even better than that.

This Monday has been especially lucrative for a number of big ASX miners.

First up is Capricorn Metals Ltd (ASX: CMM). This ASX 200 gold miner has enjoyed a 2.17% bump so far today to $5.19.

That’s not only a new 52-week high for Capricorn but an all-time, record high. Investors have also enjoyed a pleasing 57% return from Capricorn over the past 12 months.

Another ASX 200 share worth checking out is Gold Road Resources Ltd (ASX: GOR). Gold Road shares are presently up a decent 0.65% to $1.86. But this gold miner hit a new 52-week high of $1.90 a share this morning soon after market open.

That’s just a whisker off of Gold Road’s all-time high of just over $2 a share that we saw back in mid-2020.

ASX 200 gold shares glitter

De Grey Mining Limited (ASX: DEG) is another ASX 200 gold miner that is on fire this Monday. De Grey shares have gained 1.43% so far today to $1.56 a share.

That’s bang on De Grey’s new 52-week high and is also close to the highest share price this miner has ever traded at.

Next, we have gold share Perseus Mining Limited (ASX: PRU). This company’s rise has been a little more muted, with Perseus shares up 0.86% so far to $2.35 each.

This morning, the company lifted as high as $2.38 a share, which is a new 52-week high for Perseus. Although this isn’t a record high, it is the highest share price this company has seen in a decade.

Finally, we have yet another ASX 200 gold miner in Northern Star Resources Ltd (ASX: NST). Northern Star shares have put on a pleasing 1.2% so far this Monday to $11.90 each.

This morning saw a new 52-week high of $11.99 for Northern Star as well, capping off what has been a very pleasing day of trading for ASX 200 gold shares.

So with so many gold shares hitting new highs, you might think there is an underlying factor at play here. Well, you’d be right. As my Fool colleague James covered this morning, the price of gold jumped a substantial 1.6% at the end of last week to US$1,869.70 per ounce.

Thus, we can probably thank this jump for the boom we have seen in these five ASX 200 gold shares this Monday.

The post Mineral mania: 5 ASX 200 mining shares smashing new highs on Monday appeared first on The Motley Fool Australia.

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More reading

• This ASX 200 coal share is up 170% in a year. But one director is still buying
• Why are ASX 200 iron ore shares jumping higher today?
• Why is the Core Lithium share price soaring 4% on Monday?
• Are healthy returns on the horizon for ASX 200 healthcare shares in 2023?
• 5 things to watch on the ASX 200 on Monday

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 A2 Milk Company Ltd (ASX: A2M) share price was on form in 2022.

Thanks to a rally late in the year, as shown below, the infant formula company’s shares rose 20% over the period.

As a comparison, the S&P/ASX 200 Index (ASX: XJO) index was down 5.5% in 2022.

Why did the A2 Milk share price smash the market?

As mentioned above, the A2 Milk share price took off late in the year.

This was driven by news that the US Food & Drug Administration had granted A2 Milk approval to import, sell, and distribute infant formula products in the US market.

And while management doesn’t expect any impact in the first half of FY 2023 due to the timing of the approval, it estimates that it will ship 1 million cans of infant formula to the United States during the second half.

But it won’t stop there if demand is stronger. The company has capacity to supply upwards of 9 million cans in the future.

In addition, the commencement of the company’s NZ$150 million on-market share buyback in November was supporting the A2 Milk share price late in the year.

Is it too late to buy shares?

Unfortunately, with the A2 Milk share price currently fetching $6.89, the broker community appears to believe its shares have peaked for the time being.

The most bullish broker that I’m aware of is Bell Potter. However, although it has a buy rating on its shares, the broker’s price target of $6.80 has now been surpassed.

Elsewhere, Morgans has a hold rating and $6.35 price target, Citi has a sell rating and $4.51 price target, and Goldman Sachs has a sell rating and $5.60 price target.

They appear to believe investors would be best waiting for some weakness before picking up shares.

The post The A2 Milk share price rocketed 20% in 2022. Is it too late to buy for 2023? appeared first on The Motley Fool Australia.

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• 2 ASX 300 shares soaring to new 52-week highs today
• Can these 2 ASX 200 shares crush the market again in 2023?
• 3 ASX shares near 52-week highs I think can climb higher
• I think these 3 ASX shares could benefit from a Chinese tourism boom
• Could A2 Milk shares pay a dividend in 2023?

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 A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The VHM Limited (ASX: VHM) share price is tumbling as it floats on the Aussie bourse on Monday.

The rare earths and mineral sands developer’s goal to become a global supplier of critical minerals caught the attention of many market watchers prior to its listing.

Also likely raising eyebrows is Aussie billionaire and Mineral Resources Ltd (ASX: MIN) boss Chris Ellison’s majority holding. Ellison boasts a 9.14% stake at the time of listing.

Right now, excited investors can get their hands on VHM shares for $1.20 each. That’s 11.1% lower than the company’s initial public offering (IPO) offer price of $1.35 apiece.  

Let’s take a closer look at the newest rare earths and minerals sands stock gracing the ASX.

VHM share price rockets as it hits the ASX after IPO

Those who got in on the VHM IPO will likely be disappointed this afternoon as the company’s share price slumps 11% on its ASX float.

It raised approximately $30 million in an oversubscribed IPO, offering new shares for $1.35 apiece.

That left the company expecting a market capitalisation of $266 million at its offer price.

What does VHM do?

VHM is behind the Goschen rare earths and mineral sands project in Victoria – dubbed by chair Donald Runge a “fast-emerging tier one” asset. Runge continues, via the company’s prospectus:

As the world continues to transition to renewable and environmentally friendly products like electric vehicles, the gap between increasing demand for rare earth and mineral sands and declining supply is anticipated to widen.

VHM is seeking to capitalise on these favourable market conditions and establish itself as a world-leading producer and supplier of critical minerals.

The project has a rare earth deposit of 413,107 tonnes of total rare earth oxide and an accompanying mineral sands resource.

Its definitive feasibility study was completed in March 2022.

The $30 million raised through the company’s IPO will fund to a final investment decision for the project’s first phase. That’s expected in the second half of this year.

After that, its first production is targeted for early 2025.

VHM recently agreed to provide Chinese rare earths giant Shenghe with around 60% of the project’s nominal production rate.

It’s also working on tests for a hydrometallurgy circuit to further refine rare earths produced at the project.

The post VHM share price plummets 11% following $30m IPO appeared first on The Motley Fool Australia.

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More reading

• Mineral mania: 5 ASX 200 mining shares smashing new highs on Monday
• The A2 Milk share price rocketed 20% in 2022. Is it too late to buy for 2023?
• Why is the BHP share price having such a strong start to the week?
• 4 ASX lithium stocks moving and shaking on Monday
• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?

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

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The BHP Group Ltd (ASX: BHP) share price has continued its ascent on Monday.

In morning trade, the mining giant’s shares were up 2% to $48.43.

When the BHP share price reached that level, as you can see below, it had risen an impressive 28% in six months.

Why is the BHP share price pushing higher again?

Investors have been buying the Big Australian’s shares on Monday for a couple of reasons.

The first is a strong session for ASX shares following an even stronger night of trade on Wall Street on Friday. Investors were flooding back into the market after wage inflation was softer than expected. This has sparked hopes that inflation could be easing and rates won’t have to rise as much as feared.

In addition, investors have been buying ASX mining shares recently amid optimism over the reopening of China from the pandemic.

With Chinese economic growth slowing markedly, the market is betting on some major stimulus to support its recovery in 2023. This could lead to an uptick in demand for the commodities that BHP produces such as copper and iron ore, which could ultimately underpin strong commodity prices.

It is for the same reason that the Rio Tinto Ltd (ASX: RIO) share price has climbed along with BHP shares in recent months, as shown below.

Can BHP’s shares keep rising?

As things stand, most brokers appear to believe the BHP share price is trading a little beyond fair value at the current level.

For example, Morgans, Morgan Stanley, and Goldman Sachs have the equivalent of hold ratings with price targets of $44.80, $42.55, and $42.90, respectively.

However, one broker that sees scope for BHP’s shares to rise slightly from here is Macquarie. Its analysts currently have an outperform rating and $50.00 price target on them.

Based on the latest BHP share price, this implies potential upside of 3%. But if you add in the ~$2.88 per share fully franked dividend the broker is forecasting in FY 2023, the total return stretches to 9%.

Though, if commodity prices strengthen because of Chinese demand, it is possible that brokers will upgrade their earnings (and dividend) estimates and price targets accordingly. Time will tell if that is the case.

The post Why is the BHP share price having such a strong start to the week? appeared first on The Motley Fool Australia.

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More reading

• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?
• Why are ASX 200 iron ore shares jumping higher today?
• How much profit are BHP shares going to make in 2023?
• Will 2023 get better for ASX 200 shares?
• Why BHP, Core Lithium, Santos, and Winsome shares are charging higher

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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There’s electricity in the air this morning as a handful of ASX lithium shares bask in the excitement of recent acquisition developments.

At the time of writing, the broad S&P/ASX 200 Index (ASX: XJO) is enjoying a green start to the week — rising 0.99% to 7,179.7 points. The sector feeling the most love so far today is materials, catching a 0.66% boost with the Fortescue Metals Group Limited (ASX: FMG) share price being the odd one out.

However, four ASX lithium shares are making some of the biggest waves today. Let’s explore the exact details behind the moves.

IGO makes a $136 million offer for growth

An ASX lithium giant, IGO Limited (ASX: IGO), has made it clear this morning it is looking for additional lithium resources.

As previously reported, the $10.8 billion Australian miner — in conjunction with its joint venture partner Tianqi Lithium — has offered 50 cents per share to acquire Essential Metals Ltd (ASX: ESS).

Following the announcement, shares in Essential Metals have sprung to life, jumping nearly 38% to 47.5 cents apiece. Meanwhile, IGO shares are being pushed 1.9% to the upside today, now trading hands at $14.28.

The $136 million deal would value the Pioneer Dome Project owner at a 45% premium to its Friday closing price.

Mineral Resources doubles down on gas

A release by Mineral Resources Ltd (ASX: MIN) on Friday afternoon confirmed it had taken a 16.35% stake in Warrego Energy Ltd (ASX: WGO). The Mineral Resources share price is catching a 3.1% rally today, lifting to $86.14.

Notably, MinRes’s financial interest in Warrego comes amid a bidding battle for the gas exploration company. Gina Rinehart’s Hancock Group has been duking it out with Strike Energy to try and secure a winning bid on Warrego.

While Mineral Resources is mostly known for its mining services, iron ore, and lithium businesses, it also dabbles in energy. In fact, the investment in Warrego follows a $403 million off-market takeover bid of Norwest Energy NL (ASX: NWE) made in December.

ASX lithium share buying up projects

Barely a month into its listed life and Patriot Lithium Ltd (ASX: PAT) is already looking to spread its wings. Shares in the lithium explorer are up 5.3% today after announcing the acquisition of three prospective land packages in Ontario.

According to the release, the land totals 909sq km in the greenstone belts of the Archean Superior Craton of Ontario. These include the Gorman Project, the Forester Project, and the Birkett Project.

The post 4 ASX lithium stocks moving and shaking on Monday appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 iron ore shares jumping higher today?
• Why is ASX lithium share Essential Metals exploding 40% today?
• Will 2023 get better for ASX 200 shares?
• 2 ASX dividend shares to buy with 5%+ yields – analysts
• Here are the top 10 ASX 200 shares today

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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The Vanguard Australian Shares Index ETF (ASX: VAS) is a rather special exchange-traded fund (ETF) on the ASX. For one, it’s the only ASX ETF that tracks the S&P/ASX 300 Index (ASX :XKO) rather than the more popular S&P/ASX 200 Index (ASX: XJO).

But more importantly, the Vanguard Australian Shares ETF is, by a mile, the ASX’s most popular ETF by funds under management.

So given the importance of this fund to ASX investors, it’s a good opportunity to examine how its underlying portfolio has changed over the past 12 months.

How has the Vanguard Australian Shares ETF portfolio changed over the past year?

Vanguard hasn’t yet updated its holdings beyond 30 November 2022. So we’ll use that as a benchmark.

12 months ago (as of 30 November 2021), this ETF had the following 10 ASX 300 shares as its top holdings:

1. Commonwealth Bank of Australia (ASX: CBA) with a fund weighting of 7.47%
2. CSL Limited (ASX: CSL) with a weighting of 6.56%
3. BHP Group Ltd (ASX: BHP) with a weighting of 5.45%
4. National Australia Bank Ltd (ASX: NAB) with a weighting of 4.23%
5. Australia and New Zealand Banking Group Ltd (ASX: ANZ) with a weighting of 3.57%
6. Westpac Banking Corp (ASX: WBC) with a weighting of 3.54%
7. Macquarie Group Ltd (ASX: MQG) with a weighting of 3.27%
8. Wesfarmers Ltd (ASX: WES) with a weighting of 3.03%
9. Woolworths Group Ltd (ASX: WOW) with a weighting of 2.32%
10. Telstra Group Ltd (ASX: TLS) with a weighting of 2.27%

Let’s compare those to how the Vanguard Australian Shares Index ETF’s holdings looked as of 30 November 2022:

1. BHP Group Ltd with a weighting of 10.37%
2. Commonwealth Bank of Australia with a fund weighting of 8.29%
3. CSL Limited with a weighting of 6.51%
4. National Australia Bank Ltd with a weighting of 4.51%
5. Westpac Banking Corp with a weighting of 3.75%
6. Australia and New Zealand Banking Group Ltd with a weighting of 3.33%
7. Woodside Energy Group Ltd (ASX: WDS) with a weighting of 3.18%
8. Macquarie Group Ltd with a weighting of 2.92%
9. Wesfarmers Ltd with a weighting of 2.48%
10. Telstra Group Ltd with a weighting of 2.07%

So you can see that, while some of the players have been shuffled, the Vanguard Australian Shares ETF song largely remains the same.

What are some of the changes?

Perhaps the largest change over these 12 months is the entry of Woodside Energy Group, displacing ASX 300 blue chip stalwart Woolworths from the top ten shares. This reflects the merger between the old Woodside Petroleum and BHP’s oil division that was finalised in the middle of last year.

This resulted in Woodside becoming a much larger company and thus getting a boost in representation in this ASX ETF.

Speaking of BHP, you’ll also notice that the Big Australian shot up from the third-largest holding 12 months ago to the top spot it presently occupies. This is the result of BHP’s ‘unification’ program implemented at the start of 2022.

BHP rehomed its London-listed shares back to the ASX, also resulting in an almost-doubled presence on the local market.

But otherwise, the major holdings in the Vanguard Australian Shares ETF are fairly similar to where they were 12 months ago. But who knows what 2023 will bring for investors in the ASX’s most popular ETF?

The post How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 iron ore shares jumping higher today?
• Bought $1,000 of Woodside shares 10 years ago? Here’s how much dividend income you’ve received
• Are healthy returns on the horizon for ASX 200 healthcare shares in 2023?
• Buy NAB and this ASX dividend share for a passive income boost: analysts
• How much profit are BHP shares going to make in 2023?

Motley Fool contributor Sebastian Bowen has positions in CSL, National Australia Bank, Telstra Group, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Telstra Group and Wesfarmers. The Motley Fool Australia has recommended Macquarie Group and Westpac Banking. 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 Argosy Minerals Limited (ASX: AGY) share price was a strong performer in 2022.

During the 12 months, as you can see below, the lithium producer’s shares rose an impressive 78%.

Can the Argosy Minerals share price keep rising?

The good news for investors is that one leading broker believes Argosy Minerals shares can rise further in 2023.

According to a recent note out of Canaccord Genuity, its analysts have a speculative buy and 85 cents price target on the Argentina-based lithium producer’s shares.

Based on the current Argosy Minerals share price of 65.2 cents, this implies potential upside of 30% for investors over the next 12 months.

What did the broker say?

Canaccord Genuity highlights that Argosy Minerals recently produced its first battery quality lithium carbonate during commissioning at its 2,000tpa Rincon operation. It believes the production of 250kg of 99.76% lithium carbonate “represents a significant validation of its production process.”

And while the broker acknowledges that there is still work to be done, it has been pleased with its progress so far. The broker commented:

The company must now ramp up to nameplate capacity over the first half of 2023 and maintain quality metrics. However, it marks the transition of AGY becoming a producer of lithium carbonate, one of only two ASX-listed companies to do so to date.

Canaccord Genuity also provided investors with an idea of what to expect from the company’s financials in 2023 in 2024. It is forecasting EBITDA of $50 million on revenue of $68.8 million in FY 2023 and EBITDA of $62.5 million on revenue of $82.7 million in FY 2024.

Though, the broker sees scope for higher earnings if lithium prices don’t soften as much as it is forecasting. It explained:

We have trimmed our sales number for 2023E leading to a 25% fall in EBITDA to A$50m. […] If we were to run a spot price of US$67,350/t as a scenario, our 2023E EBITDA would lift 66% to A$83m and our 2024E EBITDA would lift 117% to A$137m.

All in all, the broker appears to see Argosy Minerals as a top option in the lithium space for investors with a high tolerance for risk.

The post This ASX 300 lithium share boomed in 2022, and still has 30% upside: broker appeared first on The Motley Fool Australia.

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More reading

• These were the 3 best performing ASX lithium shares of 2022
• 3 ASX All Ordinaries shares up by more than 60% in 2022
• Why Argosy Minerals, Arafura, Deep Yellow, and Pro Medicus shares are charging higher

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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