The Magellan Financial Group Ltd (ASX: MFG) share price has been devastated in recent years. It’s currently more than 85% lower than the all-time high it posted back in February 2020.

But there could still be hope for the S&P/ASX 200 Index (ASX: XJO) funds management business.

One top broker has reportedly doubled down on the stock, upgrading it to a buy ahead of the release of the company’s half-year earnings.

And the market appears to be bidding the Magellan share price higher in response. Right now, the stock is trading at $9.40 – 6.58% higher than its previous close.

For comparison, the ASX 200 is down 0.86% at the time of writing.

Let’s take a closer look at what one broker thinks the future could hold for the embattled financials giant.

Magellan share price rockets 7% amid broker upgrade

The Magellan share price is having a day in the sun amid reports UBS has upped its expectations for the stock. The broker has slapped a buy rating following years of tipping it a sell, the Australian Financial Review reports.

The stock has also been predicted to climb to $10. That represents a potential 6.4% upside on its current level.

It comes after the fund manager revealed another $500 million outflow for the month of January.

Though, thanks to favourable market movements, it ended the month with $46.2 billion of funds under management (FUM) – a 2% month-on-month improvement. Of that, $19 billion was retail and the other $27.2 billion was institutional.

And UBS is said to see value at such levels. The broker believes its FUM will fall before steadying at around $40 billion. Analysts said, courtesy of the publication:

Performance has remained elusive given style-headwinds, however the Global one-year track record is -3.3% vs benchmark and assuming 2% [per annum] alpha going forward would see the three-year track record hit benchmark returns by late 2024.

The broker also reportedly likes Magellan’s balance sheet, saying cash and investments are behind around half of its market capitalisation. That’s said to imply the company (excluding C&I) is trading on around 8 times sustainable earnings with a 12% fully franked dividend yield.

No doubt more eyes will be on the Magellan share price when the fund manager releases its earnings for the first half of financial year 2023 tomorrow.

The post The Magellan share price is surging 7%. Is it time to buy back in? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Magellan share price pops then drops on ASX FUM update
• A rare day in the green: Magellan share price soars 5%
• Investing in ASX 200 dividend shares? Here’s what to look for in 2023: fund manager
• Should you buy Seek, Magellan, or Virgin shares?

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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It’s been a pretty horrible day for ASX shares and the S&P/ASX 200 Index (ASX: XJO) in general so far this Wednesday. At the time of writing, the ASX 200 has lost a nasty 1.06%, putting the index down to around 7,350 points.

But not all ASX 200 shares are in the wars today. In fact, let’s talk about four that are not only rising, but have just hit new 52-week highs today.  

4 ASX 200 stocks at new 52-week highs on Wednesday

Altium Limited (ASX: ALU)

ASX 200 tech share Altium is one such company that is defying the market’s gloom today. At present, the Altium share price has risen by a decent 1.94% to $39.70 a share. But earlier this morning, the software-as-a-service (SaaS) provider rose as high as $40.34. That’s a new 52-week high for Altium shares.

We haven’t had any news out of Altium itself for almost a month. So perhaps a rise in the US tech sector overnight is helping to boost sentiment for shares like Altium today. This company’s shares are up a pleasing 15.4% year to date, so this could also be an extension of that trend.

Carsales.com Ltd (ASX: CAR)

Another ASX 200 tech share in Carsales is our next stock to check out. Carsales is also having a massive day today. The online marketplace operator has had a very bouncy day indeed. Carsales shares are presently deep in the red, nursing a 1.26% loss to $22.66 a share.

But this morning saw the company rocket, with the shares hitting $23.53 soon after open. That’s Carsales’ new 52-week high.

Investors have been showing a renewed appreciation of Carsales shares ever since the company announced its latest half-year earnings on Monday. Revenue, profits and earnings were all up across the board, and Carsales jacked up its interim dividend by almost 12%. So this probably explains today’s new high.

Seven Group Holdings Ltd (ASX: SVW)

Next up we have the ASX 200 diversified investment company Seven Group. Seven is having a fantastic session this Wednesday. The company is currently up a healthy 3.03% to $24 a share but rose as far as $24.53 just before midday today.

This one is pretty clear. Seven has also just reported its own half-year earnings this morning. This saw a 16% rise in revenues, while net profits were up 17% and earnings per share (EPS) rose 18%. Obviously, investors have been impressed by what seven had to show.

Lottery Corporation Ltd (ASX: TLC)

Finally today, let’s talk about ASX 200 gaming share Lottery Corporation. Lottery Corp shares are currently up by 0.9% at $5.04 each. But this morning saw this company rise as high as $5.10 per share. That’s (you guessed it) a new 52-week high for Lottery Corp.

Unlike Carsales and Seven Group, we haven’t had any earnings from Lottery Corp recently. So this rise appears to just be the result of some investor goodwill. Lottery Corp shares have been on the SX for less than a year. The company was spun out of Tabcorp Holdings Ltd (ASX: TAH) in May last year.

The post 4 ASX 200 stocks smashing new 52-week highs on Wednesday appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Are whales dipping in and out of this ASX 200 travel share?
• 3 ASX 200 shares just upgraded by brokers, one with 50% upside

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 positions in and has recommended Altium. The Motley Fool Australia has recommended Carsales.com. 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 leading investors from Wilson Asset Management (WAM) have shared two undervalued ASX shares on their radar.

WAM operates several listed investment companies (LICs). Some, like WAM Leaders Ltd (ASX: WLE), focus on larger companies.

Meanwhile, WAM Capital Limited (ASX: WAM) targets “the most compelling undervalued growth opportunities in the Australian market”.

But does WAM have a claim of stock-picking pedigree? The WAM Capital portfolio has delivered an investment return of 15% per annum since its inception in August 1999. That’s before fees, expenses, and taxes. This gross return outperformed the All Ordinaries Total Accumulation Index (ASX: XAOA) return of 8.5% per annum over the same timeframe.

With that in mind, here are the two ASX shares WAM Capital has outlined in its recent monthly update.

Myer Holdings Ltd (ASX: MYR)

Myer is a retailer that operates 57 department stores; it also has an online offering as well.

WAM noted that Myer recently revealed details of its FY23 half-year result, which showed total sales growth of 24.8%. This was its “strongest sales result on record for the first five months of a financial year”.

The fund manager noted that Myer said its sales following Christmas had “continued to outperform strongly” compared to the prior corresponding period.

Myer is expecting its net profit after tax (NPAT) for the 26 weeks to 28 January 2023 to be between $61 million to $66 million. This would represent year-over-year growth of between 89% to 104%, which was more than the market’s expectations.

WAM thinks that a tougher economic environment will impact Myer over the next 12 months. But, more foot traffic in its city stores and increases in inbound tourism will “allow the business to maintain its strong momentum”.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)

The other ASX share that the fund manager picked out was Fisher & Paykel. It’s described as a leading designer, manufacturer, and marketer of products and systems for use in respiratory care, surgery, and the treatment of obstructive sleep apnoea.

WAM pointed out that Fisher & Paykel Healthcare upgraded its revenue guidance for FY23. The ASX healthcare share is expecting full-year operating revenue to be between $1.55 billion to $1.6 billion.

Why did the company bump up its expectations? It was because of higher COVID-19 cases in China and an earlier-than-expected start for the flu season in the US, which contributed to a “rapid surge” in demand for the company’s products.

The fund manager finished with the following optimistic view on the ASX share:

We believe Fisher & Paykel Healthcare Corporation’s runway for growth remains strong with falling freight and logistics costs providing greater confidence that the company can achieve its 30% operating margin target in the medium-term.

The post 2 ASX shares to buy that have ‘strong momentum’: expert appeared first on The Motley Fool Australia.

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More reading

• Why Accent, Iluka, Myer, and QBE shares are charging higher today
• Why Block, Codan, Latin Resources, and Myer shares are storming higher
• Myer share price leaps 6% amid supercharged sales
• Why Fisher & Paykel, Netwealth, Stanmore, and Terracom shares are dropping
• Here are the top 10 ASX 200 shares today

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 come under pressure on Wednesday largely due to weakness in the banking sector. In afternoon trade, the benchmark index is down 1% to 7,357.7 points.

Four ASX shares that aren’t letting that hold them back today are listed below. Here’s why they are charging higher:

Cochlear Limited (ASX: COH)

The Cochlear share price is up over 6% to $222.72. This follows the release of the hearing solutions company’s half year results. While Cochlear reported a decline in its half year profit, it continues to expect solid full year profit growth thanks to the launch of the new Nucleus 8 Sound Processor and the continuing recovery from COVID surgery delays.

GUD Holdings Limited (ASX: GUD)

The GUD share price is up over 6% to $8.80. Investors have been buying this diversified products company’s shares after it reported a 55.7% increase in half year revenue and an 88.7% jump in net profit. This was driven by a strong core automotive result combined with full six-month contributions from APG and Vision X.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is up 5% to $13.91. This has been driven by the investment platform provider’s half year results. Netwealth reported an 18.9% increase in total income to $102.8 million and record underlying EBITDA of $47.4 million. This was driven by a 10.2% increase in funds under administration to $62.4 billion.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is up 2.5% to $49.82. The catalyst for this has been the release of the conglomerate’s half year update. Wesfarmers reported a 27% increase in revenue to $22.56 billion and a 14.1% lift in net profit after tax of $1.38 billion. Strong performances from Bunnings and Kmart played a role in this solid performance.

The post Why Cochlear, GUD, Netwealth, and Wesfarmers shares are charging higher appeared first on The Motley Fool Australia.

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More reading

• Everything you need to know about the boosted Wesfarmers dividend
• Wesfarmers shares take off as bargain hunting sees Kmart earnings add 110%
• Cochlear share price surges 6% on solid half and buyback
• Wesfarmers share price in focus as revenue jumps 27%
• Earnings preview: Here are the ASX shares reporting on Wednesday

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 Cochlear and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group and Wesfarmers. The Motley Fool Australia has recommended Cochlear. 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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Wesfarmers Ltd (ASX: WES) shares are up 2.3% to $49.82 per share on the back of a big interim dividend boost, announced this morning.

That came as the diversified S&P/ASX 200 Index (ASX: XJO) retail share reported its half-year earnings results for the six months ending 31 December (H1 HY23).

Here’s everything you need to know about the boosted Wesfarmers dividend.

What’s happening with the Wesfarmers dividend?

The Wesfarmers board declared a fully franked 88 cent per share (cps) interim dividend.

That’s an increase of 10% from the 80 cents per share paid out in the first half of the 2022 financial year.

Wesfarmers said the payout reflects “Wesfarmers’ dividend policy, which takes into account available franking credits, balance sheet position, credit metrics and cash flow generation and requirements”.

The big lift was made possible by a 14.1% year-on-year increase in net profit after tax (NPAT), which came in at $1.38 billion.

ASX 200 investors who want to receive the payout should note the ex-dividend date is next Monday, 20 February.

If you own shares before they trade ex-dividend you can expect the 80 cents per share payout on 28 March.

Wesfarmers also operates a dividend reinvestment plan (DRP). This enables you to automatically reinvest all or a portion of the payout into new shares.

If you wish to participate in this, the DRP election date is a week from today, Wednesday 22 February.

The post Everything you need to know about the boosted Wesfarmers dividend appeared first on The Motley Fool Australia.

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More reading

• Why Cochlear, GUD, Netwealth, and Wesfarmers shares are charging higher
• Wesfarmers shares take off as bargain hunting sees Kmart earnings add 110%
• Wesfarmers share price in focus as revenue jumps 27%
• Earnings preview: Here are the ASX shares reporting on Wednesday
• Banking on term deposits to retire rich? I’d buy ASX 200 dividend shares instead

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

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The S&P/ASX 200 Index (ASX: XJO) is taking another turn for the worse so far this Wednesday. At the time of writing, the ASX 200 has lost a disappointing 0.7%, putting the index down to around 7,380 points. But the ANZ Group Holdings Ltd (ASX: ANZ) share price is faring even worse.

ANZ shares are having a clanger today. The ASX 200 bank share has tumbled by a nasty 2.3% and is back down to $25.14 a share. This latest drop means that ANZ stock has now fallen close to 3% since last Thursday:

So what’s going on with this big four bank today that has ANZ shares so vastly underperforming the broader market?

Well, there are a few things that could be contributing to these losses.

Why is the ANZ share price having such a woeful Wednesday?

Firstly, most ASX 200 bank shares are down today, so it’s not just ANZ shares feeling the pain.

National Australia Bank Ltd (ASX: NAB) shares are down by 2.34% at present. The Westpac Banking Corp (ASX: WBC) share price is down by 2.9%, while Commonwealth Bank of Australia (ASX: CBA) has lost a notable 3.35%.

On the latter, CBA actually reported its half-year results for the six months ending 31 December 2022 this morning.

As we covered at the time, CBA reported a 12% rise in operating income to $13.59 billion, while cash net profits rose 9% to $5.15 billion. Commonwealth Bank also reported an 18 basis point lift to its net interest margin, bringing it to 2.1%.

This enabled CBA to announce a $1 billion increase to its share buyback program, as well as a 20% hike to its interim dividend to $2.10 per share.

But investors must have been hoping to see better numbers. As my Fool colleague posited this morning, perhaps investors are concerned that CBA’s net interest margins have already peaked.

So with such a negative reaction from the markets to CBA’s numbers this morning, it was always going to be hard for ANZ shares to eke out a gain today.

We also had some news out of ANZ itself which could be playing a role here too. The bank announced a new capital notes offer this morning, with the intention of raising $1 billion to “help meet its capital requirements”

So it’s likely that a combination of these events is responsible for the disappointing ANZ share price performance we are seeing this Wednesday. Even so, this big four bank remains up by a healthy 8.9% in 2023 so far.

At the current ANZ share price, this ASX 200 bank share has a trailing dividend yield of 5.8%.

The post Why is the ANZ share price tumbling on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Why did the CBA share price just sink almost 6%?
• Everything you need to know about the supersized CBA dividend
• Earnings preview: Here are the ASX shares reporting on Wednesday
• CBA share price on watch amid strong profit growth and $1b buy-back
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. 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 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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ASX All Ords shares are trading lower this morning with the S&P/ASX All Ordinaries Index (ASX: XAO) down 0.67%.

However, these two All Ords companies are outperforming their peers after reporting strong half-year results.

Pact Group Holdings Ltd (ASX: PGH)

This ASX All Ords share shot up a whopping 8.4% this morning to $1.10 after the packaging manufacturer reported its FY23 half-year results. The company’s share price is currently 2.17% higher at $1.037.

Pact Group is the largest rigid packaging plastics manufacturer in Australia and New Zealand with a growing overseas business.

Pact reported $998 million in revenue for the half, which was 8% up on the prior corresponding period (pcp) of 1H FY22.

Its underlying earnings before interest and taxes (EBIT) was $75 million, 3% above the top of its guidance range but down 8% pcp.

Underlying net profit after tax (NPAT) was $26 million, down 33% pcp but “in line with the performance of the business and increased finance costs”, the company said.

The All Ords business said the recovery of costs and volume growth had driven the increased revenue.

It noted increased demand for sustainable packaging and recycled products, new contract wins, and contract re-pricing of existing contracts during the half.

The ASX All Ords share will not pay an interim dividend, reflecting “the desire to preserve cash to allow the Company to reduce debt and continue its capital program in line with its Vision to lead the Circular Economy”.

Pact reiterated its guidance for FY23 underlying EBIT to be slightly ahead of FY22 underlying EBIT.

Redbubble Ltd (ASX: RBL)

Rebubble also reported its FY23 half-year earnings this morning. The ASX All Ords share was not out of the blocks as fast as Pact Group but is steadily climbing in lunchtime trade. The Redbubble share price is currently up 3.19% at 48.5 cents.

Redbubble is an online artwork and design marketplace selling a range of products. The All Ords company reported a 1% lift in revenue to $343.8 million for 1H FY23 compared to the pcp of 1H FY22.

Gross profit is down 6% at $101.3 million and the gross profit margin fell 2.5%.

Operating expenses excluding brand investment were 20% higher at $63.6 million.

Looking forward, Redbubble CEO Michael Ilczynski said:

Enhancing the Redbubble marketplace’s content quality and search and discovery is a primary focus for the Group to ensure customers can find products among four billion listings which appeal to their
specific interests and needs.

We are uniquely positioned to benefit from recent improvements in AI, which could revolutionize search and discovery of artists’ content and greatly enhance new and existing customers’ experience.

Early signs are positive and we expect to roll-out implementation of this technology at scale this calendar year.

The post 2 ASX All Ords shares leaping higher with one up 8% on half-year results appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries shares going gangbusters on Monday
• Guess which ASX All Ords share is leaping higher on a return to profit
• ASX shares investors rejoice! RBA says inflation has now peaked
• Bargains or traps? Fundie reveals if these 3 ASX shares are worth buying cheap
• ASX 200 tech share WiseTech wobbles on $327 million US acquisition

Motley Fool contributor Bronwyn Allen 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 Redbubble. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Fortescue Metals Group Ltd (ASX: FMG) share price is under pressure on Wednesday.

This follows the release of the iron ore giant’s half year results.

What happened during the first half?

As we covered here earlier in greater detail, Fortescue reported a 3.6% decline in revenue to US$7.84 billion during the first half. This was driven by softer iron ore prices, which offset the miner’s record-breaking shipments.

It was a similar story for its earnings, with Fortescue’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) falling 8.7% to US$4.35 billion

What about the Fortescue dividend?

Given how the Fortescue dividend has been one of the biggest on the market in recent years, investors will no doubt have been eagerly anticipating this release.

Unfortunately, the miner’s dividend took the biggest hit of them all. The Fortescue board declared a fully franked interim dividend of 75 cents per share, which was down almost 13% from a year earlier.

This represents a 65% payout of net profit after tax. This is consistent with Fortescue’s dividend policy to pay 50% to 80% of full year profits to shareholders.

When is payday?

The ex-dividend date for this is 27 February, with the dividend then scheduled to be paid to shareholders on 29 March.

Fortescue also advised that it will be operating its dividend reinvestment plan again, allowing eligible shareholders to elect to invest dividends in ordinary shares.

The issue price for shares under the plan will be calculated as the average of the daily volume weighted average market price for Fortescue shares during the five-day period commencing 2 March. There will be no discount to the allocation price and the plan will not be underwritten.

If you want to take part in the dividend reinvestment plan, you will need to apply before 1 March. Shares will then be allocated to shareholders on 29 March.

The post Here’s what you need to know about the latest Fortescue dividend appeared first on The Motley Fool Australia.

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More reading

• Fortescue share price sinks amid 13% dividend cut
• Earnings preview: Here are the ASX shares reporting on Wednesday
• Here’s the iron ore price forecast for 2023: CBA
• Better buy: Fortescue vs BHP shares
• Own Fortescue shares? Here’s what the market expects from its half year results

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 Wesfarmers Ltd (ASX: WES) share price is rocketing on Wednesday on the release of the company’s first-half profit report. And profit it did. The company posted a 1.4 billion post-tax profit for the six months ended 31 December, as The Motley Fool Australia reported earlier.

Much of that was due to Kmart’s earnings, which more than doubled year-on-year as customers looked for the lowest prices – a trend the company predicts to continue amid soaring inflation and rising interest rates.

But not all are so hopeful of the S&P/ASX 200 Index (ASX: XJO) retail-focused conglomerate.

Right now, the Wesfarmers share price is $50.03, 2.73% higher than its previous close.

Wesfarmers share price soars on Kmart win

Wesfarmers’ iconic business Kmart Group, housing both Kmart and Target, posted $475 million of earnings in the first half. That’s a 114% jump on those of the previous comparable period.

On top of the cycling of past lockdowns, Kmart’s win likely had a lot to do with customers’ positive response to its “lowest price positioning”, the company highlights.  

And that’s been tipped to continue. The company expects the increasing cost of living to send more shoppers through the discount department store’s doors.

It wasn’t a trend seen at Bunnings, however. The hardware retailer posted a 1.5% lift in earnings, which came in at around $1.3 billion.

There was also news of Wesfarmers Chemicals, Energy, and Fertilisers (WesCEF) and its Mt Holland lithium project. The business posted a notable 48.6% jump in earnings. However, it also revealed the project’s costs have risen.

Wesfarmers now expects to fork out between $1.2 billion and $1.3 billion to develop Mt Holland. That’s a jump of around 10% to 20% from previous estimates. Meanwhile, lithium hydroxide likely won’t be produced until early 2025 – six months later than previously expected.

Experts respond to the ASX 200 giant’s results

In its initial response, Goldman Sachs warns impacts from slowing housing activity and continued rate hikes could lessen demand at Bunnings – a happening it can “clearly see early evidence of”.

Additionally, while the company is bullish on commodities capable of bolstering WesCEF’s earnings once more this half, Goldman Sachs says ammonia nitrate prices are beginning to soften.

The broker reiterated its sell rating on Wesfarmers shares this morning. It’s kept its price target at $42.20 – a potential 15% downside.

Meanwhile, VanEck has reportedly labelled the company’s earnings a once-off, at least for now.

Russel Chesler, head of investments and capital markets, said sales at its retail brands could fall as rates increase amid inflation, The Australian reports. Chesler was quoted as saying:

We think investors should be very wary of consumer discretionary stocks with widespread weakness on the not-so-distant horizon.

The post Wesfarmers shares take off as bargain hunting sees Kmart earnings add 110% appeared first on The Motley Fool Australia.

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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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Wesfarmers. 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 Australian share market may be taking a tumble on Wednesday but that hasn’t stopped some ASX shares from shooting higher.

Two ASX mining shares that are recording stellar gains today are listed below. Here’s why they are hurtling higher:

Legacy Minerals Holdings Ltd (ASX: LGM)

The first ASX mining share that is recording a strong gain today is this gold explorer.

The Legacy Minerals share price is currently up 22% to 19.5 cents but was up as much as 53% at one stage. This has been driven by the release of “remarkable” drilling results from the Bauloora Epithermal Gold Project in New South Wales.

Commenting on the results, CEO and managing director, Christopher Byrne, said:

The Legacy Minerals team is pleased to confirm a remarkable discovery at the Bauloora Epithermal Gold Project of low sulphidation epithermal veins and breccia across an extensive strike of the Mee Mar Prospect vein trend. This project’s scale is demonstrated by the fact that every diamond drill hole testing the strike of the Mee Mar vein intercepted epithermal veins and breccia – delivering a continuous strike of 1,500m which remains open to the north, south and at depth.

Petratherm Ltd (ASX: PTR)

This ASX mining share is up 13% to 7.9 cents currently but was up 40% to 9.8 cents at one point.

Investors have been bidding the Petratherm share price higher following the release of an update on rare earth (REE) drill results from the Meteor Prospect, located in the Comet Project Area of the Northern Gawler Craton of South Australia.

According to the release, drilling that was undertaken during December has delivered “encouraging results.” Petratherm’s CEO, Peter Reid, commented:

The Meteor Prospect results are highly encouraging, demonstrating excellent clay hosted rare earth grades, intercept thicknesses and continuity between drill holes. The mineralisation starts at just a few metres below surface in the soft weathering profile allowing the potential for low-cost free dig mining. The shallow clay hosted mineralisation has formed over a layered mafic complex and potential remains for additional rare earths in the basement rock below.

The post Guess which ASX mining shares are soaring 40% or more on new discoveries appeared first on The Motley Fool Australia.

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

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