Category: Stock Market

The Core Lithium Ltd (ASX: CXO) share price is roaring higher amid news the company is relocating west.

The lithium favourite is shifting its head office from Adelaide to Perth in a bid to better its foothold in the mining industry. It has also welcomed two new executives to its ranks.

Right now, the Core Lithium share price is soaring 4.56%, trading at $1.26. And it’s not the only lithium stock posting notable moves today.

The IGO Ltd (ASX: IGO) share price is up 1.5% after the company announced its plan to partially take over fellow lithium stock Essential Metals Ltd (ASX: ESS). Meanwhile, shares in Mineral Resources Ltd (ASX: MIN) are gaining 2.8% amid the revelation of its new 16% stake in takeover target Warrego Energy Ltd (ASX: WGO).

For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen 0.88% at the time of writing, while the company’s home sector – the S&P/ASX 200 Materials Index (ASX: XMJ) – has lifted 1.39%.

Let’s take a closer look at the latest from the ASX 200 lithium favourite.

Core Lithium announces move to Western Australia

The Core Lithium share price is surging on Monday. Its gain follows news the company will move its headquarters to Perth – dubbing the Western Australian capital “the corporate centre of Australia’s lithium industry”.

The shift is expected to provide better access to mining services providers and a larger talent pool while retaining a direct route to the company’s Finniss Project, located near Darwin.

A Perth-based office is expected to be established by mid-2023, with the Adelaide headquarters tipped to close by the end of the year.

Core Lithium CEO Gareth Manderson commented on the move, saying:

Perth has become Australia’s lithium hub … Relocating the corporate head office to Perth makes sense for Core and forms part of our broader strategy to build a sustainable, value-driven lithium business.

All of the company’s Adelaide-based employees have been given the option to relocate.

The ASX 200 lithium favourite has appointed Melissa Winks as executive general manager of sustainability – a newly created position that reflects the company’s “commitment to sustainable practices”.

Additionally, it announced Andrew Forman would join the company as interim chief financial officer (CFO).

Forman will work alongside current CFO Simon Iacopetta to complete a handover before his February appointment. Iacopetta announced his intent to step down in November.

The company expects to appoint a permanent Perth-based CFO by mid-2023.

Core Lithium share price snapshot

The Core Lithium share price was one of the ASX 200’s best performers of 2022. And, by the looks of things, 2023 could be another big year for the stock.

The lithium share rose 73% over the course of last year. If that wasn’t enough, it’s gained another 23% since 30 December.

For comparison, the ASX 200 fell around 5% last year and has lifted 1% since the final close of 2022.

The post Why is the Core Lithium share price soaring 4% on Monday? appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• Are healthy returns on the horizon for ASX 200 healthcare shares in 2023?
• 5 things to watch on the ASX 200 on Monday
• What’s the outlook for ASX 200 lithium shares in 2023?
• The 3 ASX 200 bank shares that outperformed all others in 2022

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 Essential Metals Ltd (ASX: ESS) share price is rocketing higher on Monday morning.

At the time of writing, the lithium explorer’s shares are up 40% to 48.5 cents.

As you can see below, this is the highest level the Essential Metals share price has traded at since October.

Why is the Essential Metals share price rocketing higher?

Investors have been scrambling to buy the company’s shares this morning after it accepted a takeover offer from Tianqi Lithium Energy Australia.

Tianqi Lithium Energy Australia is a joint venture lithium business owned by lithium giants Tianqi Lithium and IGO Limited (ASX: IGO).

According to the release, the parties have entered into a scheme implementation agreement that will see Tianqi Lithium Energy Australia acquire 100% of Essential Metals for 50 cents per share in cash via a scheme of arrangement.

This represents a 45% premium to the Essential Metals share price at Friday’s close and values the company at $136 million on a fully diluted basis.

The Essential Metals board of directors has unanimously recommended that shareholders vote in favour of the scheme, and each director intends to vote their shares in favour of the scheme. This is in the absence of a superior proposal and subject to the independent expert’s report

Why acquire Essential Metals?

Essential Metals is a lithium exploration company which owns 100% of the Pioneer Dome Project in Western Australia.

It is one of only 14 JORC compliant spodumene lithium resources in Australia, with a defined JORC resource of 11.2 Mt @ 1.16% Li2O. The company also holds several other interests in early-stage exploration projects across lithium, nickel and gold.

IGO’s acting CEO, Matt Dusci, explained the rationale for acquiring the company. He said:

Both IGO and TLC are committed to progressing and growing our lithium joint venture business. The ESS transaction provides an opportunity to accelerate lithium exploration to bring new resources to production. It also complements the significant growth opportunities within the TLEA [Tianqi Lithium Energy Australia] business which include the continued expansion of the Greenbushes operation, the successful ramp up Train 1 of the lithium hydroxide facility at Kwinana and progressing towards the financial investment decision for Train 2.

We look forward to supporting TLEA with future work programs over the ESS assets, as the joint venture seeks to bring new resources to production to address the market deficit of raw materials critical for clean energy transition.

The post Why is ASX lithium share Essential Metals exploding 40% today? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 lithium shares lead the market higher on Friday
• Could copper become ‘the lithium’ of 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 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 Woodside Energy Group Ltd (ASX: WDS) share price had a ripper 2022. Looking further back, however, the stock has underperformed over the last 10 years.

If an investor were to have bought $1,000 worth of the oil and gas giant’s stock in January 2013, they likely would have walked away with 29 shares and $7 change, paying around $34.23 apiece.

Today, the Woodside share price is trading at $34.61 – just 1.1% higher than it was 10 years ago. Thus, the figurative parcel would currently be valued at $1,003.69.

. 

For comparison, the S&P/ASX 200 Index (ASX: XJO) is around 50% higher than it was in January 2013.

But could the dividends offered to those invested in Woodside over that time have made up for its share price’s sluggishness? Let’s take a look.

How much have Woodside shares paid in dividends in 10 years?

Here are all the dividends offered by Woodside over the last 10 years, rounded to the nearest cent:

Woodside dividends’ pay date	Type	Dividend amount
October 2022	Interim	$1.60
March 2022	Final	$1.46
September 2021	Interim	41 cents
March 2021	Final	15 cents
September 2020	Interim	36 cents
March 2020	Final	83 cents
September 2019	Interim	53 cents
March 2019	Final	$1.27
September 2018	Interim	73 cents
March 2018	Final	63 cents
September 2017	Interim	62 cents
March 2017	Final	65 cents
September 2016	Interim	45 cents
April 2016	Final	60 cents
September 2015	Interim	92 cents
March 2015	Final	$1.84
September 2014	Interim	$1.19
March 2014	Final	$1.15
September 2013	Interim	93 cents
May 2013	Special	61 cents
April 2013	Final	64 cents
Total:		$17.57

As the chart above shows, Woodside stock has paid out a total of $17.57 per share in dividends over the last 12 years.

That means our imagined parcel would have yielded $509.53 in passive income over its life.

It also means a person who bought $1,000 of Woodside shares for $34.23 apiece in 2013 might have recognised a 52.4% return on investment (ROI), including both share price gains and dividends.

Additionally, all offerings handed out by the ASX 200 company in that time have been fully franked. That means some shareholders might have recognised taxation benefits.

Woodside shares currently offer an 8.8% dividend yield.

The post Bought $1,000 of Woodside shares 10 years ago? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

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More reading

• 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
• 5 things to watch on the ASX 200 on Friday
• Is the party over for these ASX 200 energy shares in 2023?

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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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues as the most shorted ASX share with short interest of 14.7%, which is up week on week. Short sellers may believe that investors are too optimistic about Flight Centre’s recovery from the pandemic. Particularly given revenue margin pressures.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rebound to 13%. This betting technology company’s shares have been crushed over the last 12 months, but short sellers don’t appear to believe they have bottomed yet.
• Perpetual Limited (ASX: PPT) has 12.9% of its shares held short, which is up week on week. The fund management industry is going through a difficult period right now as rates rise.
• Megaport Ltd (ASX: MP1) has seen its short interest ease slightly to 11.1%. This network as a service operator’s shares have come under pressure in recent months amid concerns over the capital intensive nature of its business and its cash flow generation.
• Sayona Mining Ltd (ASX: SYA) has 10.5% of its shares held short, which is up week on week. Short sellers may be targeting Sayona Mining due to concerns that lithium prices could have peaked.
• Core Lithium Ltd (ASX: CXO) has short interest of 8.4%, which is flat since last week. Production delays and falling lithium prices may be behind this.
• Breville Group Ltd (ASX: BRG) has seen its short interest edge lower to 7.4%. Short sellers may be going after this appliance manufacturer due to fears that consumer spending on household goods could soften in 2023 due to housing market weakness and the cost of living crisis.
• Zip Co Ltd (ASX: ZIP) has seen its short interest remain flat at 7.4%. This high level of short interest may have been driven by concerns over Zip’s high debt and doubts over its ability to become profitable in the near term.
• Lake Resources N.L. (ASX: LKE) has short interest of 7.2%, which is down week on week. One short seller, J Capital, is alleging that this lithium developer is having issues producing battery grade lithium at scale.
• Chalice Mining Ltd (ASX: CHN) has seen its short interest ease to 7.1%. Short sellers may be targeting Chalice due to delays to the mineral exploration company’s scoping study.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• What’s the outlook for ASX 200 lithium shares in 2023?
• Can ASX tech shares rise from the ashes in 2023?
• The Sayona Mining share price exploded 46% in 2022. Can it keep up the momentum this year?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group, Megaport, and Zip Co. The Motley Fool Australia has recommended Betmakers Technology Group, Flight Centre Travel Group, and Megaport. 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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S&P/ASX 200 Index (ASX: XJO) healthcare shares saw a very mixed performance during the COVID-19 years of 2021 and 2022. But will 2023 be a stronger year?

For a few names, the pandemic saw elevated earnings. COVID testing produced a lot of extra profit and cash flow for names like Sonic Healthcare Ltd (ASX: SHL), as illustrated below, and Australian Clinical Labs Ltd (ASX: ACL).

But the COVID-testing businesses have seen their share prices plunge over the past year as COVID testing has reduced.

Many other ASX 200 healthcare shares actually suffered because surgeries and other forms of healthcare were delayed. Two examples of such delays impacting earnings during COVID include Ramsay Health Care Limited (ASX: RHC) and Cochlear Limited (ASX: COH).

CSL Limited (ASX: CSL) also suffered because the pandemic increased the cost of blood plasma and also reduced collections.

What’s the outlook for ASX 200 healthcare shares?

The companies that saw surgery delays now have waiting lists, so they can benefit from that strong demand in FY23.

While COVID testing is dropping, it’s still happening. For the month of October 2022, Sonic Healthcare reported that it generated $57.7 million of COVID-related revenue, which suggests that testing cash flow can still benefit those companies involved.

The investment giant Blackrock is one of the investors that likes the healthcare sector at the moment.

Blackrock said that healthcare is benefiting from a structural transition amid ageing populations. It said that healthcare has “appealing valuations and likely cash flow resilience during downturns”.

The fund manager suggested that it also likes healthcare because it’s “developing medicine and equipment to help meet ageing population needs”.

Valuations

While some ASX 200 healthcare shares have fallen, they still don’t have incredibly low price-to-earnings (P/E) ratios, reflecting investor confidence in their defensive nature.

Using the Commsec earnings projections for FY23, these are some of the valuations:

The CSL share price is valued at 35 times the estimated earnings.

The Ramsay Health Care share price is valued at 39 times the estimated earnings.

The Sonic Healthcare share price is valued at 19 times the estimated earnings.

The Cochlear share price is valued at 45 times the estimated earnings.

The ResMed CDI (ASX: RMD) share price is valued at 31 times the estimated earnings.

The post Are healthy returns on the horizon for ASX 200 healthcare shares in 2023? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• What’s the outlook for ASX 200 lithium shares in 2023?
• The 3 ASX 200 bank shares that outperformed all others in 2022
• I’d listen to Warren Buffett and invest in ASX shares with wide economic moats
• Guess how much a $20k investment in these ASX 200 shares in 2013 is worth 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 CSL, Cochlear, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Cochlear and Sonic Healthcare. 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 an income investor looking for dividends to boost your passive income, then you may want to consider the ASX dividend shares named below.

Both of these ASX dividend shares have been rated as buys and tipped to provide investors with attractive yields in the coming years.

Here’s what you need to know about these shares:

Healthco Healthcare and Wellness REIT (ASX: HCW)

The first ASX dividend share for income investors to consider is the Healthco Healthcare and Wellness REIT.

This health and wellness focused real estate investment trust invests in properties including hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness properties.

Analysts at Goldman Sachs are positive on the company and have a conviction buy rating and $2.14 price target on its shares.

Goldman advised that it is a fan of Healthco Healthcare and Wellness due to its strong balance sheet and its exposure to government-backed sub-sectors. It believes this makes it one of the “top picks in the sector.”

As for dividends, Goldman is expecting dividends per share of 7.5 cents in both FY 2023 and FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.72, this will mean yields of 4.35% for investors.

National Australia Bank Ltd (ASX: NAB)

Goldman Sachs is also a fan of this big four bank. Its analysts currently have a buy rating and $34.81 price target on its shares.

The broker is positive on NAB due to its exposure to commercial lending, which it expects to perform better than home lending in the current environment. Goldman also notes that the work NAB has done on productivity and cost management “leaves it well positioned for an environment of elevated inflationary pressure.”

In respect to dividends, Goldman Sachs is expecting NAB to pay fully franked dividends of $1.66 per share in FY 2023 and $1.73 per share in FY 2024. Based on the current NAB share price of $29.76, this means yields of 5.6% and 5.8%, respectively.

The post Buy NAB and this ASX dividend share for a passive income boost: analysts appeared first on The Motley Fool Australia.

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More reading

• Will 2023 get better for ASX 200 shares?
• Hunting for passive income among ASX small-cap shares? Here are my top 2 picks
• ASX financial shares lifted the ASX 200 today
• Here’s how I plan to recession-proof my ASX share portfolio this year
• 2022 was strong for the NAB share price. What’s next?

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 Pilbara Minerals Ltd (ASX: PLS) share price has been through a lot of pain over the last couple of months.

Since 9 November, it’s down 28%. However, over the past six months, it has risen by close to 70%. Certainly, it has been a very volatile time for the ASX lithium sector generally.

Is the negativity warranted?

On 26 October 2021, Pilbara Minerals announced that it had sold 10,000 dry metric tonnes (dmt) of spodumene concentrate for US$2,350 per dmt via the Battery Material Exchange (BMX).

Over the course of 2022, the company reported progressively higher prices through a number of BMX auctions. On 16 November 2022, it reported the sale of a 5,000 dmt cargo for US$7,805 per dmt.

In just over a year, the auction price jumped 230%.

But, on 14 December 2022, it revealed that it had sold two cargoes totalling 10,000 dmt for an average price of US$7,552 per dmt. That represented a decline of around 3% from the November auction. Investors may be thinking that the November auction price was the peak. The question is, is it going to keep falling?

However, at US$7,500 per dmt, Pilbara Minerals is still generating significant profit and cash flow.

The company also reported on 21 December 2022 that it had achieved a “significant improvement in pricing outcomes” with its major offtake customers, after completing price reviews. This revised price applies for all shipments in December 2022 and onwards.

Pilbara Minerals said that based on market pricing data, average pricing would equate to approximately US$6,300 per dmt (CIF [cost, insurance, freight] China) on an SC6.0 equivalent basis.

Essentially, the business is still experiencing strong pricing outcomes.

KPMG’s mining outlook for 2023 suggested that the mining outlook is “largely positive”. National Mining and Metals Leader at KPMG Australia Nick Harridge said that the “key demand story is highlighted with lithium”.

The report also said: “The pace of EV sales is increasing with nearly half of the current stock of EVs sold in the last year. But the transition away from fossil fuels will continue to require a rapid increase in the number of EVs manufactured.”

What’s the outlook for the Pilbara Minerals share price?

According to the forecast on Commsec, the ASX lithium share is valued at five times FY23’s estimated earnings and eight times FY24’s estimated earnings. Both of those valuations do not seem very demanding at all.

Remember, the lithium miner is looking to ramp up its production capacity of total spodumene concentrate across its Pilgangoora project of up to one million tonnes per annum. Plus, the business is working on growing its presence in the value chain of the lithium battery-making process, which means it will be able to capture more of the value.

Analysts are mixed on the company at the moment. Of the 16 analyst calls covered by Commsec, three are sells, six are holds, and seven are buys.

While Goldman Sachs currently rates it as a hold (according to Commsec), the price target of $4.70 implies a possible rise of around 20% over the next year.

What happens in 2023 could be largely dependent on the lithium price. If the commodity price holds up, then investor confidence could return – it’s already up more than 9% in 2023 to date.

With more electric vehicles expected to be manufactured in the coming years, I think the Pilbara Minerals share price is a long-term buy, with a possible dividend yield of 3.8% (excluding the effect of franking credits).

The post What is the outlook for the Pilbara Minerals share price in 2023? appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for ASX 200 lithium shares in 2023?
• Here are the top 10 ASX 200 shares today
• Why is the Pilbara Minerals share price racing 6% higher today?
• ASX 200 lithium shares lead the market higher on Friday
• 3 ASX growth shares to buy with huge upside potential – analysts

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 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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GQG Partners Inc (ASX: GQG) shares are quickly building a reputation as a high-yielding ASX dividend share. Indeed, it could be paying a very large dividend yield by 2024.

For investors who haven’t heard of this business before, it’s a recently-listed funds management business, though it was growing for a number of years when it was unlisted.

It offers four main share investment strategies – global equity, international equity, emerging markets, and US equity.

With the GQG share price down around 25% over the past year, I think this is a great time to be looking at the company.

Dividend prediction

With a market capitalisation of more than $4 billion, it’s a large funds management business and is benefiting from increasing scale.

The ASX dividend share currently has a dividend payout ratio policy of 90% of distributable earnings. That means most of the profit that it generates is turning into passive income for shareholders.

According to the estimate on Commsec, the business could pay an annual dividend per share of 13.2 cents per share in 2024. This translates into a forward dividend yield of 9.3%.

While it’s harder to predict things further ahead, Commsec currently has a projection of 16 cents for 2025. That would be a future dividend yield of 11.3%.

Remember, GQG pays out its dividend quarterly, so investors can receive their income in pleasing regular amounts.

Why can earnings keep growing?

At 30 June 2022, the fund manager was able to report that each of its main investment strategies had outperformed over the prior 12 months, at five years, and since inception. Achieving outperformance is certainly a good way to attract more funds under management (FUM).

Indeed, the ASX dividend share continues to see pleasing fund inflows, despite the volatility in the share market. For the three months to 30 September 2022, the business saw net inflows of US$0.8 billion. It’s seeing these fund inflows across multiple geographies and major channels.

With the vast majority of the company’s revenue and earnings coming from management fees, not performance fees, GQG’s profit (and dividend) can be more resilient and consistent.

The US-based business is expanding geographically, such as its presence in both Canada and Australia. Last year, it opened offices in Brisbane and Melbourne.

GQG notes that its management is (still) the largest shareholder in GQG, meaning its team is “highly aligned with shareholders, and acutely focused on and committed to GQG’s future”.

Foolish takeaway

Dividends are not guaranteed so we can’t say for sure how much dividend income is going to be paid in the coming years. There’s a chance that it could end up paying even more than the estimates.

I think the fund manager’s investment strategy can continue to produce good returns for investors. This can be good for FUM and, therefore, good for earnings and its dividend.

The post This ASX dividend share is projected to pay a 9% yield by 2024 appeared first on The Motley Fool Australia.

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More reading

• 10 ASX shares I think are buys for 2023

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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BHP Group Ltd (ASX: BHP) shares are among the most followed by ASX investors. BHP is the biggest business in Australia with a market capitalisation of $233 billion.

It’s significantly higher than the second largest company, Commonwealth Bank of Australia (ASX: CBA), which has a market capitalisation of $174 billion.

The last 12 months have been very volatile for the ASX mining share as commodity prices bounce around, as seen below.

How much profit could the miner make in FY23?

I’m going to focus on the profit in per share terms so that it’s in context with the BHP share price.

As a reminder, in FY22, the company’s continuing operations generated US$21.3 billion of underlying attributable profit (up 26%) and net operating cash flow of US$29.3 billion (up 13%).

The earnings per share (EPS) of continuing operations was US$4.21, up 25%.

According to Commsec, Goldman Sachs has suggested that BHP could generate EPS of US$2.48 for FY23. At the current exchange rate, that puts the BHP share price at 13 times FY23’s estimated earnings.

The business has a number of moving parts that combine for its overall profit, such as iron ore, copper, coal, and nickel.

While BHP can’t control the resource price, it decides how much resource it produces.

In the first quarter of FY23, copper production increased 9% year over year to 410.1 kt, iron ore production went up 3% year over year to 65.1 mt, metallurgical coal production declined 1% year over year to 6.7 mt, energy coal production sank 38% year over year (due to wet weather and labour shortages) to 2.6 mt, and nickel production jumped 16% year over year to 20.7 kt.

Remember, of the US$34.4 billion underlying earnings before interest and tax (EBIT) BHP made in FY22, US$6.3 billion came from copper, US$19.5 billion was from iron ore and US$8.7 billion was from coal (with US$5.7 billion of that generated by the BHP Mitsubishi Alliance, which produces metallurgical coal).

In summary, production increased in the FY23 first quarter for the divisions that generated most of the underlying profit in FY22.

Is it time to buy BHP shares?

Goldman Sachs has a neutral rating on the resources giant, with a price target of $42.90, according to Commsec. That suggests a possible fall of around 10% over the next year.

I think that investors are looking increasingly confident about the COVID situation in China. With lockdowns seemingly over and the Chinese government looking to support the property sector, it seems some of the confidence about resources is justified.

But I think it could be worthwhile for investors to wait until confidence about resources is lower, which could also lower the BHP share price.

The post How much profit are BHP shares going to make in 2023? appeared first on The Motley Fool Australia.

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More reading

• Will 2023 get better for ASX 200 shares?
• Why BHP, Core Lithium, Santos, and Winsome shares are charging higher
• 5 things to watch on the ASX 200 on Thursday
• These are the highest-yielding ASX 200 dividend shares right now
• Can the BHP share price deliver in 2023?

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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2022 was tough on the S&P/ASX 200 Index (ASX: XJO), but ASX energy stocks – and coal shares in particular – bucked the trend.

The S&P/ASX 200 Energy Index (ASX: XEJ) soared nearly 40% between the final close of 2021 and the end of 2022. That’s compared to the ASX 200’s 5.5% tumble.

The sector’s strong performance came on the back of surging energy commodities – a result of Russia’s invasion of Ukraine.

Indeed, Newcastle coal futures lifted above US$450 a tonne to reach a new record in 2022, bolstering producers’ bottom lines.

But which ASX 200 coal shares posted the biggest gains last year? Let’s take a look.

3 ASX 200 coal shares that outperformed all others in 2022

The Whitehaven Coal Ltd (ASX: WHC) share price outperformed not only all fellow ASX 200 coal stocks in 2022, but every other ASX 200 share as well.

After closing 2021 trading at $2.61, the stock rocketed to end 2022 at $9.42 — an incredible 261% rise.

That was despite floods impacting production at the company’s New South Wales open-cut mines.

in August, Whitehaven posted a record $1.95 billion profit for the 2022 financial year and a 1,396% year-on-year increase in earnings before interest, tax, depreciation, and amortisation (EBITDA).

The New Hope Corporation Limited (ASX: NHC) share price also took off in 2022, rising from $2.23 on 31 December 2021 to $6.36 12 months later – a 185% gain.

In September, it also posted a whopping profit for the last financial year. Its profit rose nearly 1,140% to $983 million year-on-year, while its underlying EBITDA came in around 330% higher at $1.58 billion.

Finally, coal mining stock Coronado Global Resources Inc (ASX: CRN) takes out the bronze spot, coming in as 2022’s third best-performing ASX 200 coal share.

After ending 2021 at $1.24, the company’s share price shot up to close last year at $1.99 – a 60.5% improvement.

The ears of dividend fans were likely pricked by this stock last year. It posted two ordinary dividends and three special dividends over the period, totalling approximately 59.75 cents per share.

Some of those payouts related to the whopping US$849 million of EBITDA it posted for the six months ended 30 June – a 3,200% year-on-year improvement.

The post These 3 ASX 200 coal shares posted the biggest gains of 2022 appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy now
• 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 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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