The Warrego Energy Ltd (ASX: WGO) share price has started the week with a bang.

In morning trade, the energy explorer’s shares are up just short of 12% to 31.5 cents.

This means the Warrego Energy share price is now up 100% since this time last month.

Why is the Warrego Energy share price zooming higher again?

Investors have been scrambling to buy shares again after a bidding war broke out between Beach Energy Ltd (ASX: BPT) and Gina Rinehart’s Hancock Energy.

According to the release, Hancock Energy has increased its takeover bid from $0.23 per Warrego share to $0.28 per Warrego share. All other terms of its offer remain unchanged.

The release also reveals that the Warrego board has assessed the revised Hancock takeover offer and has determined that it is a superior proposal compared to the revised scheme proposal from Beach Energy.

Beach Energy’s revised offer was for an upfront cash consideration of $0.25 per share, plus the potential for additional scheme consideration if Warrego’s Spanish assets are sold within 12 months of implementation of the scheme.

What’s next?

Warrego Energy has now issued a notice to Beach Energy under the matching rights regime in the Beach Scheme Implementation Deed. This gives Beach five business days to match the revised Hancock Energy takeover offer.

Until Beach Energy has had an opportunity to match the revised Hancock offer, the Warrego Energy directors maintain their existing recommendation in favour of the Beach scheme proposal.

However, that will very likely change if Beach Energy doesn’t improve its offer, given how the company now regards the Hancock Energy as “superior”.

And let’s not forget that Strike Energy Ltd (ASX: STX) is a dark horse in this race. It tabled a merger proposal last month for 0.775 new Strike shares for each Warrego share held. Based on the current Strike Energy share price, this represents an offer price of 25.575 per share.

Why is Warrego Energy in demand?

All three companies appear to have their eyes on the company’s onshore assets in Western Australia’s prolific Perth Basin.

The company holds a 50% interest in EP469, including the West Erregulla gas project, and 100% of STP-EPA-0127, covering a massive 8,700 km2 (or 2.2 million acres).

The post Warrego Energy share price leaps 12% as takeover battle continues appeared first on The Motley Fool Australia.

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More reading

• 3 best-performing ASX 200 energy shares in November
• Why Bigtincan, Bubs, St Barbara, and Warrego shares are charging higher
• 3 ASX shares soaring on takeover bids today
• 5 things to watch on the ASX 200 on Friday
• Warrego Energy share price rockets 80% in a month amid clash of the takeover titans

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 Arafura Rare Earths Ltd (ASX: ARU) share price has broken its trading halt this morning on news of a $121 million placement headed by mining magnate Gina Rinehart.

Rinehart’s Hancock Prospecting put forward $60 million for the capital raise. It’s expected to walk away with an approximate 10% stake in the ASX rare earths developer.

Right now, the Arafura share price is 38.7 cents, 12.05% lower than its previous close.

This morning marks the stock’s return to trade after it was frozen on Friday ahead of the announcement.

Let’s take a closer look at what’s going on with the ASX rare earths share on Monday.

Arafura share price plummets on placement

The Arafura share price is tumbling after the company announced a capital raise to help accelerate its Nolans Project’s development schedule.

It has received firm commitments for $121 million under the placement. The raise is offering new shares for 37 cents apiece.

Another $12 million is expected to be raised through a share purchase plan. That will allow existing shareholders to snap up new stocks for the placement price.

The 37-cent per share price tag represents a 15.9% discount to Arafura’s previous closing price.

Arafura managing director Gavin Lockyer commented in today’s release, saying:

We are extremely pleased with the number of new and significant Australian and offshore institutional investors joining our register including Hancock Prospecting, a company well experienced in large project developments.

The Nolans Project is well positioned to become a ground-breaking strategic development for Australia with its single site ore to oxide business model.

Construction at Nolans is set to kick off in the new year. Funds raised through the placement will go towards the early contractor involvement phase, orders for certain items, the start of notable constructions, design and financing activities, as well as general working capital.

Today’s tumble included, the Arafura share price is 83% higher than it was at the start of 2022. It has also more than doubled over the last 12 months.

Comparatively, the All Ordinaries Index (ASX: XAO) has fallen more than 3% year to date. The benchmark index is trading flat over the last 12 months.  

The post Arafura share price sinks 12% as Gina buys up big appeared first on The Motley Fool Australia.

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More reading

• Why is the Hawsons Iron share price rocketing 18% on Monday?
• Why is the Arafura Rare Earths share price on hold today?
• These were the 3 best-performing ASX All Ords shares in November
• Almost ready to retire? I’d buy ASX dividend shares now to capitalise on a stock market recovery
• How to make $56,000 in passive income by investing $500 a month in ASX 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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The Hawsons Iron Ltd (ASX: HIO) share price is on a tear on Monday, up 18.28% in morning trade.

The ASX iron ore stock closed on Friday trading for 9.3 cents per share and is currently changing hands for 11 cents per share.

Here’s what driving ASX investor interest today.

What are ASX investors considering?

The Hawsons Iron share price is rocketing following a non-price sensitive release announcing non-binding Letters of Intent (LOIs).

The LOIs are for the offtake of up to 58 million tonnes per annum (Mtpa) of high-grade Hawsons Supergrade concentrate. The miner said this reflects increasing pressure on the global steel industry to decarbonise production.

The current list of 18 potential off-takers include 12 steel mill operators and six commodity trading houses.

The Hawsons Iron share price may also be getting a lift from the report on demand from mining companies for offtake discussions once a Bankable Feasibility Study (BFS) is complete.

Commenting on the progress, Hawsons’ managing director, Bryan Granzien said:

This level of investment interest in the project and robust offtake demand is clearly a strong demonstration that making the transition to producing zero-emission ‘Green Steel’ is front and centre on the global steel industry’s planning horizon and that Australia is a preferred supplier of high-grade magnetite concentrate.

The miner indicated that there’s plenty of demand to scale up its Iron Project.

“The LOIs we now have in hand provide additional confidence that there is more than sufficient market demand to support a modular expansion plan to 20 Mtpa,” Granzien said.

Hawsons said it couldn’t name the interested parties at this time due to commercial-in-confidence considerations.

Hawsons Iron share price snapshot

The Hawsons Iron share price notched up fresh five years highs in April this year but has since retraced. With today’s big intraday boost factored in, the ASX iron ore miner is trading right where it was 12 months ago.

The All Ordinaries Index (ASX: XAO) is also flat over the full year.

The post Why is the Hawsons Iron share price rocketing 18% on Monday? appeared first on The Motley Fool Australia.

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• These were the 3 best-performing ASX All Ords shares in November
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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 Lake Resources N.L. (ASX: LKE) share price is falling on Monday.

In morning trade, the lithium developer’s shares are down 1% to $1.02.

Why is the Lake Resources share price under pressure?

Today’s decline may have been driven by the release of another short seller report on the company this weekend.

According to a note out of J Capital, its analysts believe that the direct lithium extraction (DLE) technology the company is looking to use could be “dramatically” underperforming expectations.

This technology is the key to making the lithium developer’s Kachi project in Argentina a success, so its failure would be a big blow to the company’s aspirations.

J Capital alleges that Lake Resources’ new CEO, David Dickson, has been contacting other DLE providers due to the underperformance of the current technology, which is being developed by its partner Lilac Solutions.

It commented:

One of the first actions of Lake Resources’ (Lake) new CEO, David Dickson, was to contact Chinese-listed Sunresin (3000487 SZSE) to ask if Lake could explore the use of their direct lithium extraction (DLE) technology. We have confirmed this with multiple sources, including Sunresin. If Lake is reaching out to alternative technology suppliers and going back to the drawing board for its technological solution for DLE, then investors deserve to know about it. Lake should advise investors if Kachi brine will be evaluated by alternative DLE technology partners for the extraction of lithium.

What else?

J Capital also highlights that after 600 hours of operation, the DLE technology has produced 80% less lithium carbonate equivalent (LCE) than was expected.

Lake Resources was aiming to produce 2,500kg of LCE after 1,000 hours of operation but only indicated that 303kg LCE was produced after 600 hours in a recent update.

But it gets worse, according to J Capital. The investment firm believes that there could be issues with quality given that no shipments have been announced. It explained:

It appears there may also be a quality problem with the lithium concentrate produced at the pilot plant to date. We estimate the first 2,000 liters of lithium concentrate was produced by the end of October and still has not been shipped 30 days later. Lake has not provided an explanation for this delay.

Lake should be clear with investors about why they have delayed the first shipment of 2,000 liters and why it will take up to three months to process the lithium carbonate from the lithium concentrate that is currently being produced at the site. Is there a quality problem with the lithium concentrate being produced by Lilac that creates difficulty for processing it into lithium carbonate?

These certainly are interesting times for the Lake Resources share price and its shareholders.

The post Lake Resources share price lower amid fresh short seller attack 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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The IGO Ltd (ASX: IGO) share price is in the red, down 1.77%, after the lithium miner reported both positive and negative news this morning.

IGO shares closed Friday trading for $16.34 and are currently changing hands for $16.05 apiece.

This comes following the release of two price-sensitive updates from the S&P/ASX 200 Index (ASX: XJO) lithium stock.

What did IGO report?

In news likely to offer some tailwinds for the IGO share price, the company reported that Tianqi Lithium Energy Australia declared commercial production from Train 1 of the Kwinana Lithium Hydroxide Refinery, effective 30 November.

Tianqi Lithium Energy Australia is the joint venture between IGO (49%) and Tianqi Lithium Corporation (51%).

IGO said this reflected “confidence in the capability of Train 1 to operate continuously and produce battery-grade lithium hydroxide”.

Train 1 will continue to ramp up production through 2023. Negotiations with potential off-take customers are ongoing.

In separate news, which looks to be dragging on the IGO share price today, the lithium miner reported it has temporarily halted all operations at its Nova Operation due to a fire.

On Saturday, a fire broke out at the 10MW Nova power station, owned and operated by the IGO’s power partner, Zenith Energy Pty Ltd. The fire was contained to the diesel engine room, which suffered extensive damage.

IGO reported that there were no injuries and all its personnel were safe. The miner is working with Zenith to get the power back online. It expects to be able to restart mining operations at Nova in two weeks. Restoration of the full power supply needed to run the processing facility will likely take four weeks.

Commenting on the fire, IGO’s acting CEO Matt Dusci said:

While this incident will result in the Nova operation being offline for several weeks, we are thankful that all of our people are safe and unharmed. I am also grateful to our Emergency Response Team for their quick and professional response and for restricting the fire to the engine room.

We have activated our contingency plans and are working closely with Zenith to re-establish operations at Nova as quickly and safely as possible.

IGO share price snapshot

The IGO share price has benefited from soaring lithium prices over the year. Over the past 12 months, IGO shares have gained 60%. That compares to a 1% full-year gain posted by the ASX 200.

The post IGO share price slides as fire incident overshadows commercial lithium production milestone appeared first on The Motley Fool Australia.

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• Can you guess which 3 ASX 200 lithium shares led the charge in November?
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• Is China responsible for decimating your ASX 200 lithium shares?

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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Warren Buffett’s investing prowess has catapulted him to sit among the world’s richest people. Interestingly, however, the billionaire’s strategy for culminating wealth isn’t beyond the abilities of the layperson. Indeed, if I was 30 years of age with nearly no savings in the bank, I’d use Buffett’s methods to try to amass my own fortune by investing in ASX shares.

Buffett’s net worth sits at around US$109.5 billion at the time of writing, according to Forbes, making him the world’s fifth richest person. It’s no secret the ‘Oracle of Omaha’ made the majority of his fortune through value investing.

Here’s how I would look to build wealth through investing in ASX value shares if I were 30 with little to no savings.

Using Buffett’s method to try to get rich

Value investing is simple in concept, but it can be tricky to get right in the real world. The idea behind the strategy is to find shares that are trading below their intrinsic value.

By doing so, an investor can jump on board a quality company and wait for the market to realise the true value of their investment’s assets. The key point here is ‘quality’. Here’s a widely cited Buffett quote:

It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

But what makes a company wonderful? The investing guru is said to look for companies with strong balance sheets and competitive edges. Such traits can often help a company battle through tough times and retain their hard-built business over the years to come.

Identifying quality stocks trading for cheap

Of course, deciding to follow Buffett’s investing mantra is easier said than done. Finding undervalued, quality companies can take time and patience.

Some of the simpler ways to assess a company’s true value include considering its price-to-earnings (P/E ratio), price-to-book (P/B) ratio, and debt-to-equity ratio.

Low P/E and P/B ratios might indicate an ASX share is undervalued. Meanwhile, a high debt to equity ratio may mean it’s heavily reliant on debt.

I would also consider how a company performs during tough times. As Buffett knows, a market crash could come at any time. Additionally, I would make a point to build a diverse portfolio of value shares, thereby reducing risk.

Next to no savings at 30? Time is on your side

The final factor I would consider when trying to build wealth at 30 with next to no savings is the market’s historical upwards trajectory.

The S&P/ASX 200 Index (ASX: XJO) was established in 2000 at 3,133.3 points. Today, it trades at around 7,300 – marking a 130% gain over that time.

While past performance doesn’t guarantee future performance, a 30-year-old investor has time on their side. Even if I had no savings at 30, I would prioritise investing a set amount each month to take advantage of compounding.

Over the 10 years to 2021, the ASX 200 grew an average of 6.6% annually. Assuming I invested $500 a month in ASX shares capable of providing similar returns, I could boast a portfolio worth $530,000 in 30 years. That’s despite only forking out a total of $180,000. And that’s before considering the potential compounding power of reinvesting dividends.

So, if I were 30 with no savings to speak of, I would follow Buffett’s advice to build future wealth. Indeed, even the oracle himself is said to have built 99% of his wealth after his 50th birthday.

The post With almost no savings at 30, I’d use the Warren Buffett method to try to get rich! 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 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 Metcash Limited (ASX: MTS) share price is starting the week positively.

In morning trade, the wholesale distributor’s shares are up 1% to $4.29.

This follows the release of Metcash’s half year results this morning.

Metcash share price higher on earnings and dividend boost

• Group revenue up 8.2% to $7.7 billion
• Group underlying earnings before interest and tax (EBIT) up 10.3% to $255.1 million
• Underlying profit after tax up 9.1% to $159.9 million
• Fully franked interim dividend up 9.5% to 11.5 cents per share
• Outlook: strong start to second half

What happened during the half?

For the six months ended 31 October, Metcash reported an 8.2% increase in revenue to $7.7 billion thanks to growth in all pillars despite cycling the impact of extensive lockdowns. Management advised that this was underpinned by continued strong demand, inflation and acquisitions.

On a three-year basis, which the company notes provides a comparison with pre-COVID trading, group revenue including charge-through sales increased 31.7% on a normalised basis.

Pleasingly, Metcash’s margins expanded, leading to a 10.3% increase in underlying EBIT to $255.1 million. The key drivers of this earnings growth were its Hardware and Liquor businesses.

Hardware EBIT increased 17.9% with growth in both IHG and Total Tool after underlying demand in the Trade and DIY segments remained robust.

Liquor EBIT increased 11.3% over the prior corresponding period. This was thanks to strong sales to retail customers and a recovery in sales to on-premise customers post-lockdowns and easing of other COVID-related restrictions.

The Food pillar delivered a more modest 3.2% increase in EBIT. However, this was achieved despite cycling the impact of extensive lockdowns in New South Wales and Victoria a year earlier, which led to demand for food being elevated. This reflects continued shopper support for local neighbourhood stores, underpinned by their differentiated offer and a further improvement in network competitiveness.

This increase in earnings and its strong financial position ultimately allowed the Metcash board to lift its interim dividend by 9.5% to a fully franked 11.5 cents per share. This dividend will be paid to eligible shareholders on 30 January.

Outlook

All pillars have continued to trade well in the first four weeks of the second half, with group sales up 6.2% over the prior corresponding period. This comprises Food sales growth of 4%, Hardware sales growth of 8%, and Liquor sales growth of 8.9%.

Management advised that this growth reflects consumers continuing to enjoy the improved competitiveness and differentiated offer of the network’s local neighbourhood stores.

And while sales growth rates have moderated compared to the very high levels during COVID, they continue to be driven largely by robust underlying demand and inflation, with volume growth remaining broadly positive.

However, management acknowledges that there is a lot of economic uncertainty which could impact its second-half performance. This could be holding back the Metcash share price a touch today. It concluded:

While supply chain challenges have improved, they continue to be a risk for all pillars in 2H23, as do additional fuel, freight and labour costs. There continues to be uncertainty over the level of inflation going forward, as well as how the impact of inflation and other cost of living increases may impact consumer behaviour in the retail networks of our pillars, and Metcash.

The post Metcash share price higher on dividend boost 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 recommended Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There has been a lot of damage done to a wide range of ASX shares. But, 2023 could be the year that some names surge higher if things go well.

ASX shares that are hoping to grow substantially in the coming years could get some traction next year.

Of course, just because a business is growing doesn’t necessarily mean that investors are going to recognise that potential within a 12-month time period, but I think underlying growth of the ASX share can indicate good things for the potential shareholder returns. That’s why I’ve got my eyes on these three ideas:

Healthia Ltd (ASX: HLA)

Healthia is a small cap ASX share with over 300 clinics. This healthcare share has three segments that are aimed at helping people across ‘bodies and minds’, ‘feet and ankles’ and ‘eyes and ears’.

I think that, over time, scale can greatly add to this business’ profitability as it grows the number of clinics through acquisitions and organic growth.

If the business can execute a steady pipeline of bolt-on acquisitions, it will naturally become a larger business over time.

The business already has a small presence in markets outside of Australia, in New Zealand and the USA, which gives it a longer growth runway.

According to Commsec, the business is valued at just 10x FY23’s estimated earnings with a potential grossed-up dividend yield of 5.7%.

Monash IVF Group Ltd (ASX: MVF)

This ASX share is about providing IVF services to help families have children. The company says that the maternal birth age has increased by two years over the last 20 years and is expected to further increase.

The IVF industry saw a 5% compound annual growth rate (CAGR) of volume between FY17 to FY22. After a disrupted period of COVID, 2023 could be a good year. It managed to slightly increase its market share in FY22.

It’s gaining “momentum” in south east Asia with five IVF clinics across the region. It is planning to open two or three new clinics each year. By FY26, Asia could be contributing 25% of the group’s stimulated cycles.

FY23 has started strongly – market share was up another 1.4% to 23.8%. According to Commsec numbers, it’s priced at under 16x FY23’s estimated earnings.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a leading provider of software relating to screening for breast cancer and lung cancer.

It has built an impressive market share in the US. Of the women that are screened for breast cancer, at least one of Volpara’s products is used on 40.5% of women’s images.

The ASX share has an impressive gross profit of more than 90%, so extra revenue can help it power towards profitability. Its FY23 first-half result showed total revenue growth of 22% in constant currency terms.

I think a big step towards breakeven in 2023 will go some distance to quell investor concerns about potentially needing to do a capital raising.

Growth of average revenue per user (ARPU), geographic expansion and large client wins could be good tailwinds for the Volpara share price next year.

The US Food and Drug Administration (FDA) is expected to release breast density legislation, which could also be a boost for Volpara if it means more dialogue with patients about cancer risk.

The post 3 ASX shares I think are primed to break out in 2023 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Healthia. The Motley Fool Australia has recommended Healthia. 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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Fortescue Metals Group Limited (ASX: FMG) shares are in my portfolio even though it’s one of Australia’s leading carbon emitters.

The iron ore company digs up a lot of raw material. But it takes a significant amount of fossil fuels to get the iron out of the ground, onto trucks and trains, and then onto boats.

Fortescue recently made an announcement that indicated it emits three million tonnes of CO2 equivalent emissions per annum.

It also means the business is exposed to fuel price volatility, currently costing Fortescue a significant sum of money.

But it’s the company’s plans relating to decarbonising and green energy that attracted me to the business.

Net zero by 2030

Fortescue has announced a US$6.2 billion plan to “eliminate fossil fuel use and achieve real zero terrestrial emissions (scope 1 and 2) across its iron ore operations by 2030″.

Management believes his initiative will avoid three million tonnes of CO2 per annum. Fortescue pointed to the displacement of approximately “700 million litres of diesel and 15 million GJ of gas per annum by 2030”.

The net operating cost savings are expected to be US$818 million per annum from 2030. Cumulative operating cost savings of US$3 billion are expected by 2030, with a payback of capital by 2034. That’s at market prices at the time of the announcement. This might be helpful for the Fortescue share price as it saves on operating costs.

The business also suggests this will establish a “significant new green growth opportunity by producing a carbon-free iron ore product and through the commercialisation of decarbonisation technologies”.

So while Fortescue is one of the worst offenders when it comes to emissions, it has a huge plan to eliminate those fossil fuels from the business.

I also appreciate the company’s plan to produce green hydrogen and green ammonia to help various parts of the economy to decarbonise. This includes areas such as aviation, boating, and machinery. I believe this can help the Fortescue share price over the long term.

Positive management commentary

Fortescue founder Andrew Forrest has a vision of what the business can achieve in the green space. When the decarbonisation plan was announced, Forrest said:

We are already seeing direct benefits of the transition away from fossil fuels — we avoided 78 million litres of diesel usage at our Chichester Hub in FY22 — but we must accelerate our transition to the post fossil fuel era, driving global scale industrial change as climate change continues to worsen. It will also protect our cost base, enhance our margins and set an example that a post-fossil fuel era is good commercial, common sense.

Fortescue, FFI and FMG, is moving at speed to transition into a global green metals, minerals, energy and technology Company, capable of delivering not just green iron ore but also the minerals, knowledge and technology critical to the energy transition.

Fortescue share price snapshot

Over the last month, shares in the iron ore miner have risen by 29%.

The post I consider myself an environmentalist, but I still bought Fortescue shares. Here’s why appeared first on The Motley Fool Australia.

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More reading

• The iron ore price just posted its biggest-ever monthly gain. What’s going on?
• 10 ASX dividend shares paying more than 10% yield right now
• Fortescue’s green hydrogen ambitions: Prosperous or preposterous?
• How the Fortescue share price defied the bears and jumped 32% in November
• What’s boosting the Fortescue share price on Wednesday?

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

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The Pilbara Minerals Ltd (ASX: PLS) share price is on the move on Monday morning.

At the time of writing, the lithium miner’s shares are up 2.5% to $4.98.

This means the Pilbara Minerals share price is now up over 40% since the start of 2022.

Why is the Pilbara Minerals share price pushing higher?

Investors have been buying this lithium miner’s shares this morning for a couple of reasons.

The first is a positive night of trade for lithium shares on Wall Street on Friday. This saw the likes of Albemarle Corporation, Livent Corp, and Sociedad Quimica y Minera de Chile record solid gains during the session.

Also giving the Pilbara Minerals share price a boost today has been the release of the quarterly index rebalance update from S&P Dow Jones Indices.

That update revealed that Pilbara Minerals will be promoted to the illustrious ASX 50 index when indices next rebalance on 19 December. It will join the index at the expense of engineering company Lendlease Group (ASX: LLC).

This wasn’t overly surprising. With the Lendlease share price down by almost a third this year, its market capitalisation was the lowest in the ASX 50 index. Whereas Pilbara Minerals’ market capitalisation has ascended to a level that puts it firmly in the top 50 companies listed on the Australian share market.

Is this good news?

This could be good news for the Pilbara Minerals share price as it potentially opens the company up to fund managers with strict investment mandates that only allow them to invest in shares in the ASX 50 index.

And while Mineral Resources Limited (ASX: MIN) is also in the blue chip index, Pilbara Minerals is the only pureplay lithium share in it. This could make it popular with any fund managers wanting exposure to the decarbonisation megatrend.

The post Why is the Pilbara Minerals share price charging higher on Monday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Can the Pilbara Minerals share price regain its lustre in December?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Down 10% in November, why did the Pilbara Minerals share price power down?

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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