Category: Stock Market

The Magnum Mining and Exploration Ltd (ASX: MGU) share price is having a woeful time during late Friday afternoon trade.

This follows the mineral mining company’s latest announcement in regards to its agreement with Anglo American.

At the time of writing, Magnum shares are down 7.69% to 12 cents apiece. Earlier, the Magnum share price hit a 5-month low of 10.5 cents within the first hour of market open.

What did Magnum announce?

Investors appear worried about the potential offtake arrangement, selling Magnum shares today. The arrangement would see Magnum sell its entire direct shipping ore from its Buena Vista iron ore project to Anglo American.

According to Magnum’s release, both parties have extended the exclusivity period to conduct due diligence for the agreement. As such, the Magnum board does not foresee any impact to production timings should the offtake agreement be reached.

The exclusivity date has been pushed back until 4 November 2021. However, a formal contract is expected to be signed well before.

The term sheet remains unchanged. This includes the right of first refusal to Anglo American for 100% of the offtake volumes. This consists of iron ore concentrate, hot briquetted iron (HBI) and Pig Iron from Phase 2 of the project, as well as financing.

Magnum said it would provide a further update when the formal agreements were complete.

In addition, the company is reviewing other attractive opportunities in the region to increase its resource inventory from adjacent land. It also is working towards a bankable feasibility study to progress the HBI and Pig Iron project.

About the Buena Vista iron ore project

Located in Nevada in the United States, the Buena Vista mine is positioned to become a green steel producer. The term ‘green’ refers to producing materials from waste products. The mine is also considered a significant magnetite mineral resource that has had $34 million invested in advancing the project.

Additionally, the mine has close access to rail, water, port, and power facilities.

Magnum share price summary

Until recently, a strong 12 months hyped by investor sentiment led the Magnum share price to jump by more than 240%. Year-to-date performance has been just as impressive, with Magnum shares posting gains of more than 120%.

Based on valuation ground, Magnum has a market capitalisation of around $59.5 million, with approximately 496 million shares outstanding.

The post Magnum Mining (ASX:MGU) share price slides 7% on project update appeared first on The Motley Fool Australia.

More reading

• Why Baby Bunting, Galan Lithium, Suncorp, & Vulcan shares are sinking
• Why has the NIB (ASX:NHF) share price reached a 52-week high on Friday?
• Commonwealth Bank (ASX:CBA) share price falls amid climate revolt
• The Sydney Airport (ASX:SYD) share price is up 43% for the year. Here’s why
• Afterpay (ASX:APT) and Bitcoin, a marriage made in crypto heaven?

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3lXevGz

The S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is pushing higher. In afternoon trade, the benchmark index is up 0.5% to 7,625.2 points.

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

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is down 5% to $5.68. This follows the release of the baby products retailer’s full year results for FY 2021. That release revealed that Baby Bunting achieved a 15.6% increase in sales to $468.4 million and a 34.8% jump in net profit after tax to $26 million. Although this was strong, its subdued start to FY 2022 appears to have spooked investors. Baby Bunting advised that same stores sales are down 6.4% as of 12 August.

Galan Lithium Ltd (ASX: GLN)

The Galan Lithium share price has fallen 4.5% to $1.22. This morning the lithium explorer announced firm commitments to raise $50 million through a two-tranche institutional placement. These funds will be raised at $1.15 per share, which represents a 10.2% discount to its last closing price. Galan Lithium plans to use the proceeds to accelerate the development of its lithium projects.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price has dropped 3.5% to $12.34. The insurance and banking giant’s shares have tumbled today after they traded ex-dividend for its upcoming final and special dividends. Eligible shareholders can now look forward to receiving fully franked dividends totalling 48 cents per share on 22 September.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan share price is down 4% to $14.64. This is despite there being no news out of the lithium developer. However, with the lithium sector running hot this week, profit taking appears to be weighing on Vulcan’s shares. In fact, even after today’s gain, the Vulcan share price is up almost 15% since this time last week.

The post Why Baby Bunting, Galan Lithium, Suncorp, & Vulcan shares are sinking appeared first on The Motley Fool Australia.

More reading

• Galan Lithium (ASX:GLN) share price tumbles 6% after $50 million placement
• Baby Bunting (ASX:BBN) share price crashes 10% on FY 2021 results
• Why is the Galan Lithium (ASX:GLN) share price frozen?
• 2 quality ASX shares for a retirement portfolio
• Top brokers name 3 ASX shares to buy 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/37F3nWs

The NIB Holdings Limited (ASX: NHF) share price leapt into the green in early trade today. Shares in the health insurer started the session well, reaching a 52-week high of $7.97, before retracing back down.

The NIB share price is now changing hands at $7.72 apiece, a 0.52% walk into the green.

Let’s examine the tailwinds behind the company of late.

What has NIB been up to lately?

On 20 July, NIB announced a restructuring of its board, appointing David Gordon as the new chair of its board. Gordon replaced Steve Crane, who officially stepped down on 29 July.

As a founding principal of Lexicon Partners and current chair of Accent Group Ltd (ASX: AX1), Gordon said he was “honoured and excited to assume the role”.

In addition, NIB was a feature in the Prime Value Opportunities Fund June update, as reported by Motley Fool’s Mitchell Lawler. The fund described NIB as “very attractive”, considering a two or three-year holding period.

Prime provided a brief synopsis of its investment thesis on NIB in the update:

The consensus view is that profit margins are unsustainably high and it’s better to own the health providers as elective surgeries, etc. return. We agree NHF’s margins will fall but using long term, sustainable margins, the company is very attractively priced.

And in the meantime it generates very high cashflows, boosting the balance sheet. To us, fundamental underlying value is more important than short term earnings trends

Investor sentiment sets the tone

Doubtlessly, investor sentiment is bullish on NIB shares at the current standing. To illustrate, the NIB share price has reached new 52-week highs three times in the last month.

Further, on the charts, NIB shares have really taken off since the beginning of July. As much is observed on the chart below.

NIB share price vs broad index, March – August 2021

Google and the Google logo are registered trademarks of Google LLC, used with permission

This is called an “uptrend”, where a share price makes consecutive new highs (and higher lows) as we walk through time.

Moreover, this display is further evidence of the bullish sentiment on NIB shares right now. The NIB share price has been in an uptrend since July, indicating there is investor demand to buy NIB shares.

With no market-sensitive information released today, it appears that the board restructuring, and in particular the current investor sentiment, are key tailwinds behind the NIB share price right now.

NIB share price snapshot

The NIB share price has posted a year to date gain of 29.3%, extending the previous 12 month’s climb of 67%.

These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)’s lift of around 25% over the past year.

NIB shares have climbed 21% over the past month alone, and are almost 4% in the green over the past week.

The post Why has the NIB (ASX:NHF) share price reached a 52-week high on Friday? appeared first on The Motley Fool Australia.

More reading

• These 10 ASX 200 shares hit new 52-week highs this Monday
• Banks, NIB and Nuix share prices rise. Nick Scali flying. Scott Phillips on Nine’s Late News
• NIB Holdings (ASX:NHF) share price looks attractive long term – Expert
• NIB Holdings (ASX:NHF) share price hits 52-week high as chairman retires

The author Zach Bristow has no positions 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 NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3g1zp3A

The Commonwealth Bank of Australia (ASX: CBA) share price is in the red as climate activist group, Market Forces, pushes the bank on its commitments to preventing climate change.

At the time of writing, shares in Australia’s largest bank are trading for $103.70 – down 2.06%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.47% higher.

Let’s take a closer look.

CBA share price down amid climate push

In the wake of the devasting climate report by the Intergovernmental Panel on Climate Change (IPCC), which outlined the dire situation humanity is facing in the next 10 years, activists have stepped up the pressure on governments and corporations to do more to mitigate man-made climate change.

Motley Fool Australia has previously reported on how Market Forces is pushing BHP Group Ltd (ASX: BHP) to keep and wind down its high-emitting assets, rather than sell them.

Regarding CommBank, Market Forces and a group of the bank’s shareholders are placing a resolution on the agenda of its AGM. The group is asking CBA “to no longer fund expansion of the fossil fuel industry, and to set targets to reduce fossil fuel exposure consistent with net zero by 2050″.

It is not clear what impact this could have on the CBA share price going forward.

‘CommBank’s new climate policy a kick in the guts‘

Market Forces claims Commonwealth Bank’s current plan aligns closer to net zero by 2070 rather than 2050. This claim was made soon after the release of the bank’s full-year results for FY21, which sent the CBA share price to a new record high.

“If the IPCC’s report was a kick in the teeth to all those who desperately want a safe climate future, CommBank’s new climate policy is a kick in the guts to follow it up”, said Jack Bertolus, Australian campaigns coordinator for Market Forces.

“What CBA has delivered today is a retreat from its existing policy, and makes a mockery of its own claim to be supportive of net-zero by 2050.

“We’re living in a moment when we need to pull out all the stops to prevent catastrophic climate change, yet the first thing CBA does is aim for failure.”

Finally, Market Forces says Commonwealth Bank has “watered down its commitment” to not funding fossil fuel activities that did not comply with the Paris Agreement. It says the bank is now only committing to not providing project funding.

When the Australian Prudential Regulatory Authority (APRA) released a draft guidance for financial institutions and their obligations around climate change, Motley Fool Australia asked CBA for comment.

At the time, a spokesperson for CommBank said:

We are aware of, and are currently reviewing, APRA’s draft guidance on managing the financial risks of climate change that was released last week. We continue to work closely with APRA and the broader industry as we strive to limit climate change in line with the goals of the Paris Agreement and support the global transition to net zero emissions by 2050.

CBA share price snapshot

Over the past 12 months, the CBA share price has increased by about 43%. Year-to-date CommBank shares are about 24% higher. It has outperformed the ASX 200 by 18 percentage points over 52 weeks and 10 percentage points in 2021.

Commonwealth Bank has a market capitalisation of around $188 billion.

The post Commonwealth Bank (ASX:CBA) share price falls amid climate revolt appeared first on The Motley Fool Australia.

More reading

• Why CBA (ASX:CBA) is backing the RBA in push for payment reforms
• ASX 200 bank shares to follow suit after CBA dividend hike: expert
• How to make the most of the CBA (ASX:CBA) share buyback
• CBA’s bumper profit, IAG’s loss and Telstra expectations. Scott Phillips on Nine’s Late News
• Why AGL, Appen, CBA, & Rio Tinto shares are tumbling lower

Motley Fool contributor Marc Sidarous 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3yMGpsj

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is arguably having one of its best years.

Shares in the infrastructure giant have soared more than 43% in the last 12 months.

Despite widespread lockdowns and border closures, Sydney Airport shares have soared in 2021.

Let’s take a look at what’s been fuelling the Sydney Airport share price.

Takeover offer boosts Sydney Airport share price

There have been several catalysts helping the Sydney Airport share price in the past 12 months.

In the latter parts of last year, with most of Australia managing to control the COVID-19 pandemic, travel restrictions were lifted.

In addition, a Trans-Tasman travel bubble between Australia and New Zealand also assisted sentiment for the sector.

Despite Sydney going into a lockdown mid-way through this year, a single catalyst has helped fuel the Sydney Airport share price.

Shares in the company received a boost early last month following a $22.6 billion buyout offer.

The offer saw the Sydney Airport share price storm more than 34% on the day.

A consortium of infrastructure investors – IFM Investors, Global Infrastructure Management, and QSuper – launched the takeover offer, valuing Sydney Airport at $8.25 per share.

Prior to the offer, the Sydney Airport share price was languishing for the year.

Outlook for Sydney Airport share price

Following the takeover offer, Sydney Airport’s management noted the predatory nature of the takeover bid.

The company cited that the offer of $8.25 per share was below where Sydney Airport shares were trading pre-pandemic.

Before the COVID-19 pandemic, the Sydney Airport share price was trading at around $8.95.

In addition, rumours began to swirl that another consortium led by Macquarie Group Ltd (ASX: MQG) was considering a counter bid.

As a result, Sydney Airport formally rejected the takeover offer for 100% of its shares in mid-July.

Despite rejecting the offer, the Sydney Airport share price has managed to hold onto its gains following the takeover bid.

More on Sydney Airport

Sydney Airport is Australia’s largest international gateway. The company generates revenue through aeronautical, retail, property, car rental and parking operations.

With widespread COVID-19 lockdowns hampering the Australian travel sector yet again, Sydney Airport could receive extra attention this reporting season.

Sydney Airport will release its 2021 half-year results on Friday 20 August.

The post The Sydney Airport (ASX:SYD) share price is up 43% for the year. Here’s why appeared first on The Motley Fool Australia.

More reading

• This ASX tech share fell 87%, but we love it now
• When was the best day on the Sydney Airport (ASX:SYD) share price chart?
• Why is the Flight Centre (ASX:FLT) share price slipping 2% today?
• The Sydney Airport (ASX:SYD) share price is up 20% so far in 2021. Here’s why
• ASX 200 Weekly Wrap: Blockbuster Afterpay deal turbocharges ASX to new record highs

Motley Fool contributor Nikhil Gangaram 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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3lY0Yyi

ASX investors have largely embraced the cryptocurrency markets in recent years, and everything that crypto coins like Bitcoin (CRYPTO: BTTC) or Ethereum (CRYPTO: ETH) have to offer. Earlier this year, we looked at how Bitcoin was pipping gold as an investment choice for many Aussies today.

However, the ASX has certainly been more restrained in its embrace of the new crypto world.

The ASX and the Australian Securities and Investments Commission (ASIC) have knocked back the idea of an ASX-listed Bitcoin exchange-traded fund (ETF) before. Unlike over in the US, no Australian company has yet decided to put some of its balance sheet assets into cryptocurrencies (more on that later).

As a report in the Australian Financial Review (AFR) notes today, the ASX has also knocked back a company called Animoca Brands from listing, despite a US$1 billion valuation. Animoca Brands hosts a non-fungible token (NFT) platform. Although NFTs are not the same thing as cryptocurrencies, clearly they are a little too close for comfort for the ASX in their shared use of blockchain technology.

But the ASX is now facing a bit of a watershed moment. That’s due to the upcoming potential merger of Afterpay Ltd (ASX: APT) and the US payments giant Square Inc (NYSE: SQ).

Afterpay lit the ASX on fire last week when it announced that it has agreed to be acquired by Square in an all-scrip deal. If the deal goes ahead, Afterpay shareholders will receive 0.375 shares of Square for every share of Afterpay owned.

Square and Afterpay bring Bitcoin to the ASX 200

Here’s where this gets mightly relevant. Square will also be offering its shares on a CHESS Depositary Interest (CDI) basis to Aussie investors on the ASX, once Afterpay shares disappear from trading.

That means that ASX investors will either be able to elect to receive NYSE-listed Square shares or shares of the new Square CDI on the ASX.

That, in turn, means Square might become one of the largest listings on the ASX. That’s despite its status as an American company. One with a current market capitalisation of US$123.5 billion to boot.

But here’s the real issue that the ASX is facing. Square is a payments giant. However, it is also deeply submerged in the world of cryptocurrencies. Whilst not yet available in Australia, its Cash App allows US customers to trade, send or receive Bitcoin and other cryptocurrencies. It also allows users to buy and sell other goods and services with cryptos.

The AFR report tells us that Square has just announced that it increased its Bitcoin revenues by 200% year on year to US$2.7 billion in its most recent reported quarter. It also states that Square has a large number of Bitcoins on its balance sheet — 8,027 of them, in fact.

This might be a little confronting for the ASX and ASIC, who have clearly been, at best, lukewarm on the presence of cryptocurrencies on the ASX.

Long story short, the ASX is facing a Brave New World. Suddenly, one of its largest holdings might be a cryptocurrency giant. A giant with almost US$363 million worth of Bitcoin on its books, no less. That’s a different look for the ASX 200 than what most of us are used to!

The post Afterpay (ASX:APT) and Bitcoin, a marriage made in crypto heaven? appeared first on The Motley Fool Australia.

More reading

• The Afterpay (ASX:APT) share price history: The major highlights (and low points)
• Why CBA (ASX:CBA) is backing the RBA in push for payment reforms
• Cathie Wood loves these 3 crypto stocks
• ASX tech shares lagging the ASX 200 on Thursday
• Aussie tech could grow to $250b. What does this mean for ASX tech shares?

Motley Fool contributor Sebastian Bowen owns shares of Bitcoin, Ethereum, and Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Bitcoin, Ethereum, and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3iEpdQe

The Australian Strategic Materials Ltd (ASX: ASM) share price is surging to fresh all-time highs on Friday, up 13.16% to $9.80.

ASM is an integrated critical metals business, hoping to become an independent, net zero-carbon supplier of critical metals.

The company owns the Dubbo project in Western Australia, with hopes of leveraging the project’s rare earths and oxide production to supply its strategic plants around the world that produce high-purity metals.

What’s driving the ASM share price?

There’s been a lot of hype around the lithium and renewables sector, with household names such as Galaxy Resources Limited (ASX: GXY), Pilbara Minerals Ltd (ASX: PLS), Orocobre Limited (ASX: ORE) and Lynas Rare Earths Ltd (ASX: LYC) all making fresh record highs in the past month.

The sector has been supported by a stream of positive news such as President Joe Biden’s executive order aimed at making at least half of all new vehicles sold in 2023 electric and higher spot prices for critical metals such as lithium and rare earths.

This narrative bodes well for the ASM share price, which aims to produce highly relevant materials from the Dubbo project including titanium, zirconium and rare earths. And transform these raw materials including powders, alloys and magnets.

ASM enters major framework agreement with South Korean investors

The last piece of price-sensitive news from ASM was its conditional exclusive framework agreement with a consortium of South Korean investors on 21 July.

The agreement would see three respected South Korean private equity firms, Cerritos Holdings Co. Ltd, Kamur Partners LLC and ACE Equity Partners LLC establish a consortium fund to subscribe to a $20 equity interest stake in ASM.

The agreement also included a ten-year offtake agreement of up to 2,800 tonnes per annum of neodymium-iron-boron alloy from ASM’s Korean Metals Plant.

The funding will support ASM’s goal of developing the Dubbo project.

The ASM share price surged 8.78% to $8.05 on the day of the announcement.

Between 21 July and 12 August, ASM shares would trade sideways, retreating from highs of $8.95 and bouncing off lows of $8.

After this brief period of consolidation, ASM would stage the breakout we’re seeing today, surging 12.37% to $9.73.

The post Australian Strategic Materials (ASX: ASM) share price soars 10% to all-time high, here’s why. appeared first on The Motley Fool Australia.

More reading

• Which ASX shares are the biggest movers on the ASX 300 today?
• Australian Strategic Materials (ASX:ASM) share price is surging 16%
• What these 5 outperforming ASX shares have in common
• Australian Strategic Materials (ASX:ASM) share price stilled by trading halt

Motley Fool contributor Kerry Sun 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3fZuEqZ

It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Goodman Group (ASX: GMG)

According to a note out of Citi, its analysts have retained their buy rating and $26.00 price target on this commercial property company’s shares. This follows the release of a full year result ahead of both the market and Citi’s expectations. This was driven by higher investment income and lower interest expense/tax. And while its guidance for FY 2022 was lower than expectations, the broker sees upside risk to this guidance. The Goodman share price is trading at $22.82 today.

National Australia Bank Ltd (ASX: NAB)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this banking giant’s shares to $29.00. Macquarie was pleased with the bank’s third quarter update and notes that it is managing its margins much better than its rivals. It has also been pleased with its market share gains in lending. The NAB share price is fetching $27.64 on Friday afternoon.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Morgans have retained their add rating and lifted their price target on this telco giant’s shares to $4.34. According to the note, the broker was pleased with Telstra’s FY 2021 results and particularly the performance of its mobile business. Looking ahead, it is very positive on the company’s future due to improving industry dynamics, its return to growth, and its valuation. In respect to the latter, it believes its current share price is less than the sum of its parts. The Telstra share price is trading at $3.95 today.

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

More reading

• ASX 200 midday update: Telstra 52-week high, PointsBet rises on US update
• Why the NAB (ASX:NAB) share price can keep rising
• Telstra (ASX:TLS) share of Digicel acquisition must be a minority — CEO
• Top brokers give their verdict on the Telstra (ASX:TLS) share price
• 5 things to watch on the ASX 200 on Friday

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 owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3lZrurd

The S&P/ASX 300 Index (ASX: XKO) is topping out another record high today, reflecting positive investor sentiment across the market.

At the time of writing, the ASX 300 is sitting around 7,615 points, up 0.42%.

Let’s take a peek below and see which shares are the biggest movers on the ASX 300 this Friday.

Who are the biggest winners on the ASX 300 today?

Australian Strategic Materials Ltd (ASX: ASM)

The biggest mover on the ASX 300 so far today is Australian Strategic Materials. With no news out of the company, investors are buying up its shares as the hype around rare earths continues.

The elements are super important in the making of high technology devices such as smart phones, computers, TVs, and more. In addition, rare earths are crucial in defence industries in the construction of aircraft, ships, and high-tech ground vehicles.

The Australian Strategic Materials share price is currently up 13.97% to $9.87.

Premier Investments Limited (ASX: PMV)

Following suit, shares in this ASX 300 company have jumped 4.75% to $28.44, nearing its all-time high of $29.35 attained earlier in June. The strong rise comes off the back of a broker note by UBS today, raising its price target by 22% to $30.00. Based on the current share price, this implies an upside of around 5%.

Star Entertainment Group Ltd (ASX: SGR)

The Star is also on the rise, elevating 4.18% to $3.49. With no recent news out of the company, however, it appears shareholders are reacting to news that the New South Wales cabinet may approve an extra 1,000 pokies for Sydney’s Star Casino. If so, this could stand to boost the company’s revenue.

And the biggest fallers?

Galaxy Resources Limited (ASX: GXY)

Heading the other way is the Galaxy Resources share price, which is down 3.7% to $5.46. This ASX 300 company’s shares have accelerated over the past 2 months – up approximately 67% from mid-June. With the lithium spot price stable for now, it seems as though investors are taking profit off the table.

Orocobre Limited (ASX: ORE)

Following suit is lithium peer, Orocobre. The company’s shares have also raced higher, up about 130% from March 2021. Currently, the company’s shares are down 3.31% to $9.63.

The post Which ASX shares are the biggest movers on the ASX 300 today? appeared first on The Motley Fool Australia.

More reading

• What’s lifting the Star (ASX:SGR) share price today?
• Why AGL, PointsBet, Premier Investments, & Star shares are charging higher
• ASX 200 midday update: Telstra 52-week high, PointsBet rises on US update
• 3 reopening ASX share ideas as potential buys
• Who are the biggest movers on the ASX 300 this Thursday?

Motley Fool contributor Aaron Teboneras 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 owns shares of and has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2Ucy3Lw

The Mineral Resources Limited (ASX: MIN) share price is up 59.2% year-to-date and has more than doubled in the past 12 months from $27.58 to higher than $60.

At the time of writing, the Mineral Resources share price is up 2%, trading at $61.19.

Looking back, shares in the mining company only started to gain traction in mid-2020, following the surge in iron ore prices.

How has Mineral Resources changed in recent years?

Mineral Resources has fundamentally been the same company over the years, operating mining services as well as iron ore and lithium production.

However, the weighting of these operations has drastically changed in the past two years.

In FY19, mining services delivered $209 million in earnings before interest, taxes, depreciation, and amortisation (EBITDA).

By comparison, iron ore and lithium production generated $214 million and $70 million in EBITDA respectively.

Fast forward to FY21, and the company’s earnings are far more skewed towards iron ore.

Mining services delivered EBITDA of $464 million, more than doubling FY19 figures.

However, iron ore EBITDA fired up almost fivefold on FY19 figures to $1,537 million.

During this time, iron ore production had lifted from 11.362 million tonnes in FY19 to 17,274 million tonnes in FY21.

Are iron ore prices driving the Mineral Resources share price?

Iron ore prices were relatively stagnant between 2017 and mid-2020, mostly trading around the US$85/tonne level.

During this time, the Mineral Resources share price also traded sideways between highs of ~$20 and lows of ~$12.

In early June 2020, Mineral Resources broke above pre-COVID highs of $19.59, the beginning of its monster run to $60.

During this time, iron ore prices rallied from ~US$100 in June to peak at ~US$230 in May.

What’s the outlook?

The recent weakness in iron ore prices is likely a contributing factor to the stalling Mineral Resources share price.

The Australian reported commentary from UBS analyst Myles Allsop, who said: “We are cautious on iron ore prices in the medium term as supply is lifting and demand is moderating.”

Allsop expects iron ore prices to stabilise by September, before falling to about US$100 a tonne next year, implying more than 50 per cent loss of value from the peak.

The post What can we learn from the Mineral Resources (ASX:MIN) share price history? appeared first on The Motley Fool Australia.

More reading

• The ASX reporting wrap-up: CBA, Mineral Resources, IAG
• Why ASX 200 lithium shares are surging to new highs
• Mineral Resources (ASX:MIN) share price slips on FY21 earnings
• How does the Mineral Resources (ASX: MIN) share price perform during lockdowns?
• The ASX reporting wrap-up: Challenger, Megaport, James Hardie

Motley Fool contributor Kerry Sun 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3CLTqF2