In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another gain. At the time of writing, the benchmark index is up 0.4% to 7,231.2 points.

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

Bendigo and Adelaide Bank Ltd (ASX: BEN)

The Bendigo and Adelaide Bank share price is down 4.5% to $9.23. This may have been driven by a couple of broker notes that were released this morning. Analysts at both Citi and Macquarie have downgraded this regional bank’s shares to neutral ratings on valuation grounds.

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price is down 5% to $6.36. This follows news that major shareholder Woolworths Group Ltd (ASX: WOW) has been selling down its stake. Woolworths has agreed to sell 5.5% of the issued capital of Endeavour via a block trade at a price of $6.46 per share. This represents a 3.6% discount to its last close price. The retail giant revealed that it isn’t planning to sell any further shares in the short to medium term.

TPG Telecom Ltd (ASX: TPG)

The TPG share price is down 4% to $4.86. Investors have been selling this telco’s shares after it was the latest victim of a cyberattack. TPG revealed that its external cyber security advisers has advised that they found evidence of unauthorised access to a Hosted Exchange service which hosts email accounts for up to 15,000 iiNet and Westnet business customers. The company believes the hackers were looking for customers’ cryptocurrency and financial information.

Zip Co Ltd (ASX: ZIP)

The Zip share price is down over 2% to 62.7 cents. This morning, UBS responded to Zip’s trading update and capital raising by retaining its sell rating and lowly 45 cents price target. This price target implies potential downside of almost 30% for investors from current levels.

The post Why Bendigo Bank, Endeavour, TPG, and Zip shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• This ASX 200 company has just become the latest victim of a cyber attack, and its share price is diving
• Why is the Endeavour share price sinking today?
• Woolworths share price higher on Endeavour selldown: What’s going on?
• Here are the top 10 ASX 200 shares today
• 2 ASX 200 dividend heavyweights to buy and hold until you retire

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 Zip Co. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended Tpg Telecom. 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 All Ordinaries Index (ASX: XAO) is having a decent day so far this Wednesday. At the time of writing, the All Ords has gained a healthy 0.42%, putting the index up at around 7,420 points. But it’s another story when it comes to the Arafura Rare Earths Ltd (ASX: ARU) share price.

Arafura shares are on fire today. This All Ords rare earths company has rocketed a whopping 13.48% so far this Wednesday, putting the company at 50 cents a share.

So what on earth is causing this company to shoot up so dramatically during this Wednesday’s trading session?

Well, it seems that a new ASX announcement might be responsible.

Last night, after market close, Arafura released a new ASX filing. This was ‘becoming a substantial holder’ declaration, and it related to none other than Gina Rinehart.

Arafura share price soars as Rinehart shows her cards

Rinehart, through her company Hancock Prospecting, already owned a significant chunk of Arafura. But it appears she has gone on another buying spree.

Rinehart, through Hancock Prospecting, forked out $43.37 million on Arafura shares on 12 December, netting the company just over 117.22 million shares.

ASX filings show that Hancock has spent most of 2022 building up a stake in Arafura.

The private company began buying in April, but slowly. Hancock made six purchases over April, netting a million to two new shares with each tranche.

This was continued over early May as well. With yet another purchase in August, this one worth around $9 million, Hancock owned approximately 49 million shares prior to this Monday.

But on Monday, Hancock Prospecting had more than tripled its stake in Arafura with its whopping $43.37 million buy. This latest purchase gives Hancock Prospecting just over 166 million shares in Arafura, with around 8.37% voting power in the company.

This purchase was the likely result of Hancock’s participation in the recently completed share purchase plan that Arufura has run.

As we reported earlier this month, Arafura announced the $121 million capital raise on 5 December. This enabled institutional investors to pick up additional shares at a price of 37 cents each. Hancock Prospecting initially put forward $60 million for this placement, but it seems that only $43.37 million was accepted.

Even so, it appears investors have been buoyed today by news of Rinehart’s investment in Arafura. Gina Rinehart isn’t Australia’s richest person for nothing, so it’s not hard to see why investors might be feeling optimistic over the Arafura share price today.

The post Why is the Arafura Rare Earths share price rocketing 13% today? appeared first on The Motley Fool Australia.

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More reading

• Why Arafura, Block, Leo Lithium, and St Barbara shares are storming higher
• Why Arafura, Megaport, Nitro, and Sayona Mining shares are storming higher today
• It’s not all bad news for the ASX All Ords on Monday. Here are 3 big gainers
• One ASX penny stock I’d buy for 2023 and hold for a decade
• 5 ASX shares involved with rare earths (aside from Lynas)

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

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The S&P/ASX 200 Index (ASX: XJO) is on form again on Wednesday. In afternoon trade, the benchmark index is up 0.4% to 7,234.4 points.

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

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura share price is up a massive 17% to 52 cents. This rare earths rare earths producer’s shares have been on fire since the completion of its recent institutional placement. Arafura raised $121 million from institutional investors (including Gina Rinehart) at 37 cents per new share. These funds will be used to help accelerate the development schedule of the Nolans Project.

Block Inc (ASX: SQ2)

The Block share price is up 8% to $104.39. Investors have been buying this payments company’s shares after a very strong showing from its US listed shares overnight. Block’s NYSE listed shares rose 7.5% on Tuesday night after the tech sector rebounded following a lower than expected US inflation reading. This has sparked hopes that interest rates won’t rise as much as feared.

Leo Lithium Ltd (ASX: LLL)

The Leo Lithium share price is up 8% to 49.7 cents. This morning, this lithium developer released an update on drilling results from the Goulamina Lithium Project in southern Mali. Drilling at the Danaya Domain at Goulamina is now complete and results continue to reveal high-grade, thick intercepts. Management notes that this confirms its expectations of multiple, wide mineralised pegmatite zones.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is up 16% to 75.5 cents. This gold miner’s shares have taken off today after investors responded positively to its plan to merge with Genesis Minerals Ltd (ASX: GMD). The two gold miners plan to combine their Leonara District operations to form Hoover House. This will result in a mining company with a fully funded “capital-light” base case production target of +300koz per annum.

The post Why Arafura, Block, Leo Lithium, and St Barbara shares are storming higher appeared first on The Motley Fool Australia.

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More reading

• ASX 200 gold share St Barbara returns with a bang, up 25%
• Why Bendigo Bank, Block, Megaport, and Starpharma shares are rising today
• 2 ASX 300 gold shares just upgraded by brokers
• Why Arafura, Megaport, Nitro, and Sayona Mining shares are storming higher today
• It’s not all bad news for the ASX All Ords on Monday. Here are 3 big gainers

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 Block. The Motley Fool Australia has positions in and has recommended Block. 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 up just 0.1% in afternoon trade, rebounding from earlier intraday losses of 1.2%.

Shares in the S&P/ASX 200 Index (ASX: XJO) iron ore miner closed yesterday trading for $20.23 and are currently swapping hands for $20.25 apiece.

The Fortescue share price is almost static despite a fractional uptick in iron ore prices overnight, currently trading for US$110 per tonne. That’s up some 34% since 1 November when the industrial metal was trading for US$82 per tonne.

What are ASX 200 investors considering?

The Fortescue share price appears to be floundering today for two reasons.

First, JP Morgan downgraded a range of iron ore miners. Fortescue was among those, with its rating cut to underweight from neutral.

JP Morgan analyst Lyndon Fagan explained (as quoted by The Australian):

China reopening, whilst a clear positive for the space, now looks to be priced into many stocks already. China’s reopening appears to be a reality, but sentiment-wise, it’s also the consensus thinking.

Fatigue on this trade for the miners could start to set in soon, given strong recent performance. Many stocks have overshot on the upside, and the market could pivot back to global recession concerns in early 2023 or begin to worry about an interrupted / less aggressive China reopening.

The Fortescue share price is likely also facing some headwinds because the China reopening isn’t going exactly to plan.

COVID infections are soaring in the Middle Kingdom’s major cities, including Beijing.

With infections surging, officials have delayed this week’s Central Economic Work Conference, which was due to take place in Beijing. No future date for the highly watched conference has yet been released.

This comes as the year just gone looks to have seen China’s economy grow at the slowest pace since the 1970s. According to Bloomberg’s economist survey, the Chinese economy is forecast to grow only 3.2%.

Fortescue share price snapshot

As you can see in the chart below, the Fortescue share price has outperformed over the past 12 months, gaining 8%.

Longer term, Fortescue shares are up 314% in five years.

The post Why is the Fortescue share price having another day to forget? appeared first on The Motley Fool Australia.

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More reading

• Lithium, miners, and tech shares, oh my! Here’s where Aussies put their ASX money in 2022
• Why Chalice Mining, Fortescue, Mincor, and Zip shares are dropping today
• Why is the Fortescue share price tanking on Tuesday?
• Could the VAS ETF outperform the BHP share price in 2023?
• Look out below! Broker tips Fortescue share price to fall 32%

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

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The South32 Ltd (ASX: S32) share price is rocketing upwards on Wednesday, outperforming the market’s biggest mining stocks.

It’s gains come amid news the company has been excluded from a series of broker downgrades. Even more excitingly, it’s been upgraded.

Right now, the South32 share price is up 3.33%, trading at $4.195.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.31% right now. Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) is up 0.53%.

Let’s take a closer look at what might be driving the ASX 200 miner higher on Wednesday.

What’s going right for South32’s stock today?

The South32 share price is outperforming those of the market’s biggest miners on Wednesday despite the company’s silence.

Indeed, while it’s gaining 3.33%, shares in its one-time parent company BHP Group Ltd (ASX: BHP) is in the red, falling 0.07% to $46.05.

At the same time, the Rio Tinto Limited (ASX: RIO) share price is up just 0.2% and Fortescue Metals Group Limited (ASX: FMG) stock has slumped 0.25%.

JP Morgan has downgraded several ASX 200 mining stocks, cutting its expectations for the likes of Rio Tinto and Fortescue, The Australian reports. Meanwhile, UBS reportedly downgraded BHP and Rio Tinto shares yesterday.

Dodging the brokers’ wrath, however, was South32. Indeed, JP Morgan was said to have upgraded the stock from neutral to overweight.

And it isn’t the only broker bullish on the stock. Morgans tips South32 shares to lift to $5.40, representing a potential 29% upside on their current level, as my Fool colleague James reports.

South32 share price snapshot

Today’s gain has boosted the South32 share price back into the year-to-date green.

The stock is 3% higher than it was at the start of 2022. It has also gained 10% since this time last year.

For comparison, the ASX 200 has fallen 5% year to date and 2% over the last 12 months.

The post Here’s why the South32 share price is shooting north today appeared first on The Motley Fool Australia.

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More reading

• Morgans says these ASX 200 resources shares have almost 30% upside
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Here are the 3 most heavily traded ASX 200 shares on Friday

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 JPMorgan Chase. 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) is no longer a stranger to the perils of a cyberattack. One of the biggest news stories of the year to date has been the massive cyberattack suffered by ASX 200 share Medibank Private Ltd (ASX: MPL) back in October.

As a result of this cyberattack, Medibank shares are halted from trading for a week. When the shares eventually returned to the market, the Medibank share price plunged by 15% and remains well below its pre-attack pricing to this day.

There was also a well-publicised cyberattack suffered by telco Optus, although Optus shares aren’t listed on the ASX.

Well, today it seems this disturbing 2022 trend is continuing. We’ve just got a share market notice out of ASX 200 telco TPG Telecom Ltd (ASX: TPG). This has flagged that TPG is the latest company to suffer a cyberattack.

ASX 200 telco TPG announces a major breach

Just before market open this morning, TPG released an announcement that revealed “unauthorised access to a hosted exchange service”.

Here’s some of what the announcement said:

On 13 December 2022, TPG Telecom’s external cyber security advisers, Mandiant, advised that they found evidence of unauthorised access to a Hosted Exchange service which hosts email accounts for up to 15,000 iiNet and Westnet business customers.

Based on the preliminary analysis undertaken to date it appears the primary aim of the threat actor was to search for customers’ cryptocurrency and financial information.

We apologise unreservedly to the affected iiNet and Westnet Hosted Exchange business customers. We continue to investigate the incident and any potential impact on customers and are advising customers to take necessary precautions.

TPG has assured investors that it is taking immediate action:

We have implemented measures to stop the unauthorised access, further security measures have been put in place, and we are in the process of contacting all affected customers on the Hosted Exchange service. We have notified the relevant government authorities.

The matter remains under investigation and we will be communicating with directly affected
customers as more information becomes available.

The TPG share price has reacted accordingly so far this Wednesday. Although the ASX 200 telco has avoided the devastating falls that hit Medibank Private, TPG shares are still down a nasty 4.73% so far this Wednesday to $4.83 a share.

The post This ASX 200 company has just become the latest victim of a cyber attack, and its share price is diving appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 dividend heavyweights to buy and hold until you retire
• 3 ASX dividend shares to buy on sale right now
• Beat the All Ordinaries with this unstoppable ASX dividend share

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Tpg Telecom. 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 Brainchip Holdings Ltd (ASX: BRN) share price is pushing higher again on Wednesday.

In afternoon trade, the semiconductor company’s shares are up 2% to 73 cents.

This means the Brainchip share price is now up 17% since this time last week.

Why is the Brainchip share price surging?

Investors appear to have been scrambling to buy the company’s shares this week following the circulation of a press release.

Brainchip let investors know via a press release that it has become a member of the Intel Foundry Services (IFS) ecosystem alliance.

The release notes that partners in this alliance collaborate with IFS to enable designers to access intellectual property (IP) which supports their design needs and project schedule.

Furthermore, it highlights that building upon Intel’s advanced technology, the IP portfolios of IFS Accelerator include all the essential IP blocks needed for modern Systems-On-Chip (SoC), such as standard cell libraries, embedded memories, general purpose I/Os, analog IP, and interface IP.

Brainchip’s chief development officer, Anil Mankar, commented:

We are proud to partner with Intel as part of its IFS Accelerator – IP Alliance. The combination of BrainChip’s Akida IP and Intel’s leading technology helps ensure that customers looking to implement edge AI acceleration and learning have the tools and resources to accelerate their success.

Intel didn’t comment on Brainchip’s entry into the program.

What’s next?

The jury is still out on whether Brainchip will ever successfully commercialise its technology.

But given this alliance, other recent agreements, management’s bullish rhetoric, and its lofty market capitalisation, the market will no doubt be expecting Brainchip to start delivering some very big sales in 2023.

Failure to do so could be bad news for the Brainchip share price.

The post Why has the BrainChip share price rocketed 17% in 4 days? appeared first on The Motley Fool Australia.

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More reading

• Lithium, miners, and tech shares, oh my! Here’s where Aussies put their ASX money in 2022
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why is the BrainChip share price crumbling 7% on Wednesday?
• Why Beach, Bellevue Gold, Block, and Brainchip shares are dropping

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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This year has been a rollercoaster for fans of ASX shares. Many were likely both overjoyed and blindsided by much of what went down in 2022.

Cast your mind back to the start of this year. If you’re anything like me, you were probably focused on rising inflation, COVID-19’s Omicron variant, and Block Inc (ASX: SQ2)’s acquisition of former market darling Afterpay.

Who would have predicted the Reserve Bank of Australia would embark on its fastest series of rate hikes in decades, dragging tech shares down, and Russia would invade Ukraine, sending energy commodity prices soaring?

But ASX investors didn’t shy away from the chaos. Instead, they turned to mining, technology, and lithium shares. That’s according to new data from trading and superannuation platform Superhero.

Here are the five S&P/ASX 200 Index (ASX: XJO) shares that have proven the platform’s most popular Aussie stocks of 2022.

ASX investors flocked to these 5 shares in 2022

2022 was a volatile year for markets around the globe, with the ASX coming out better than most. The ASX 200 has slumped 5% since the start of 2022 while the All Ordinaries Index (ASX: XAO) has tumbled 7%.

But Aussie investors didn’t let the downturn dent their confidence. Around 70% of all trades on Superhero between 1 January and 30 November were buys. And which ASX stock saw the lion’s share of trades?

It was none other than Northern Territory-based lithium developer Core Lithium Ltd (ASX: CXO).

This year saw the company working on its Finniss Lithium Project. It’s expected to begin shipping lithium concentrate in early 2023. The Core Lithium share price has gained 83% year to date to trade at $1.15 today.

Interestingly, Core Lithium was the most popular ASX share in all states and territories except Tasmania. The island state instead favourited Lithium Energy Ltd (ASX: LEL).

Coming in second best on the platform were Pilbara Minerals Ltd (ASX: PLS) shares.

The lithium producer posted its maiden profit in financial year 2022 and expects to offer its maiden dividend this fiscal year. The Pilbara Minerals share price has gained 28% this year to reach $4.52.

The third most popular share on Superhero in 2022 was iron ore favourite Fortescue Metals Group Limited (ASX: FMG). The stock has traded flat this year amid falling iron ore prices, reaching $19.93 today.

In fourth place was tech share and ASX 200 newbie BrainChip Holdings Ltd (ASX: BRN). The company works in neuromorphic computing – a branch of artificial intelligence.

Interestingly, the BrainChip share price has tumbled 7% this year to trade at 73 cents today. Though, it’s worth noting it has outperformed many of its peers – the S&P/ASX 200 Information Technology Index (ASX: XIJ) has plunged 32% year to date.

Finally, Superhero’s fifth most popular ASX share of 2022 is none other than mining giant BHP Group Ltd (ASX: BHP). Shares in the iron ore goliath have lifted 8% so far this year to reach $45.83 right now.

The post Lithium, miners, and tech shares, oh my! Here’s where Aussies put their ASX money in 2022 appeared first on The Motley Fool Australia.

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More reading

• Why has the BrainChip share price rocketed 17% in 4 days?
• BHP shares: 2 reasons to buy, and 2 to sell
• Why did the BHP share price get hammered on Tuesday?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• 2 ASX 200 dividend heavyweights to buy and hold until you retire

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 Rio Tinto Ltd (ASX: RIO) share price has dropped into the red, down 0.18% at lunchtime.

The S&P/ASX 200 Index (ASX: XJO) iron ore miner closed yesterday trading for $114.10 with shares currently trading for $114.30.

The dip comes despite the iron ore price holding steady overnight, trading at just over US$110 per tonne.

So, why is the Rio Tinto share price wallowing today?

What are ASX 200 investors considering?

The Rio Tinto share price looks to be facing some headwinds on two fronts.

First, the miner’s stock has received downgrades from several major brokers.

JP Morgan is among those, as the broker downgraded a range of iron ore miners.

Rio Tinto saw its rating cut to underweight from neutral.

Commenting on the re-rating, JP Morgan analyst Lyndon Fagan said (courtesy of The Australian):

China reopening, whilst a clear positive for the space, now looks to be priced into many stocks already. China’s reopening appears to be a reality, but sentiment-wise, it’s also the consensus thinking.

Fatigue on this trade for the miners could start to set in soon, given strong recent performance. Many stocks have overshot on the upside, and the market could pivot back to global recession concerns in early 2023 or begin to worry about an interrupted/less aggressive China reopening.

The Rio Tinto share price also faces some pressure from UBS. The broker cut Rio stock to a sell rating, saying many ASX miners have seen their share prices rise faster than fundamentals dictate.

Those gains have come on the back of China’s reopening from three years of zero COVID policies. That’s seen iron ore price charge from US$82 per tonne in early November to today’s US$110 per tonne.

But UBS noted that iron ore stocks have “moved too far and too fast as the macro backdrop remains fragile, iron ore fundamentals weak and the stocks expensive at normalised commodity prices”.

What else is pressuring the Rio Tinto share price?

Just as Rio Tinto shares were boosted by investor hopes of increased iron ore demand from China as the nation reopens, the miner looks to now be under pressure amid concerns that China’s economy is due for the slowest growth in half a century.

Indeed, according to a Bloomberg economists survey, the Chinese economy is expected to grow only 3.2% this year.

The economists surveyed predict a large contraction in retail sales, slowing factory output and investment, and rising unemployment. That data should be released tomorrow.

Atop the slowing growth, there likely are also some market jitters around the rapid spread of COVID through China’s major cities, including Beijing. The surge in infections has triggered Chinese officials to delay the Central Economic Work Conference, which was meant to start this week.

Rio Tinto share price snapshot

As you can see in the chart below, the Rio Tinto share price remains a strong outperformer over the past 12 months, up 16%. Longer-term, shares are up 61% over five years.

The post Why is the Rio Tinto share price wallowing on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Why is the Fortescue share price tanking on Tuesday?
• 5 things to watch on the ASX 200 on Tuesday
• Rio Tinto share price falls despite Turquoise Hill takeover progress
• Could the VAS ETF outperform the BHP share price in 2023?
• Here’s how I’d invest $20,000 in ASX 200 shares for a 7% dividend yield

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

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The St Barbara Ltd (ASX: SBM) share price has returned from its trading halt with a bang.

At one stage today, the gold miner’s shares were up over 25% to 81.7 cents.

The St Barbara share price has since pulled back a touch but remains up 18% at 76.7 cents.

The company’s long-suffering shareholders will certainly be pleased with this given the dreadful year they have had.

You only need to look at the chart below to see how poor the St Barbara share price has performed in 2022.

Why is the St Barbara share price racing higher today?

Investors have been scrambling to buy shares today in response to the announcement of plans to merge with Genesis Minerals Ltd (ASX: GMD).

As covered here, the two gold miners plan to merge their operations in the Leonara District of Western Australia to form Hoover House.

Hoover House will comprise:

• 7Moz mineral resources
• 2Moz ore reserves
• Fully funded “capital-light” base case production target +300koz per annum (almost double St Barbara’s Leonara production target)

Demerger plans

St Barbara also revealed that it plans to spin off its non-Leonara assets and list them separately on the Australian share market as Phoenician Metals.

Management advised that Phoenician Metals will be focused on realising the long-term value of a portfolio including the Atlantic (Canada) and Simberi (Papua New Guinea) operations, which have 6.2Moz mineral resources and 3.7Moz ore reserves.

Phoenician Metals will also have a portfolio of St Barbara royalties, $34 million in listed ASX investments, and $85 million cash.

If everything goes to plan, St Barbara shareholders will receive an in-specie distribution of shares in Phoenician Metals.

The gold miner’s chair, Tim Netscher, is “confident that this unique transaction will deliver significant value for all shareholders.” Based on the St Barbara share price performance today, the market appears to agree with this view.

The post ASX 200 gold share St Barbara returns with a bang, up 25% appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 300 gold shares just upgraded by brokers
• St Barbara share price halted amid major gold merger plans with Genesis Minerals
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• 3 ASX gold shares rocketing higher on Thursday

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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