The AGL Energy Limited (ASX: AGL) share price is slipping this morning amid reassurances regarding the company’s now-cloudy future.

A planned demerger that would have seen AGL split into energy retailer AGL Australia and energy producer Accel Energy was binned last week on the expectation it wouldn’t receive adequate shareholder support.

Today, AGL chair Peter Botten reassured shareholders of its path forward. That path will include a promised review into the company’s strategic direction and some notable board and management changes.

At the time of writing, the AGL share price is $8.14, 1.09% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is higher today, having gained 0.35%. The company’s home sector ­– the S&P/ASX 200 Utilities Index (ASX: XUJ) – is also up 0.59%. Though, the S&P/ASX 200 Energy Index (ASX: XEJ) has slumped 2.2%.

Let’s take a closer look at the latest news on the embattled energy giant.

Here’s the latest on AGL’s path forward

The AGL share price is in the red on Thursday. It comes as the company’s chair reaches out to shareholders to inform them of the company’s plans for the future.

AGL committed to a review of its strategic direction when it announced the withdrawal of its planned demerger.

The review aims to develop a strategy to create an integrated AGL. Such an AGL will be able to build shareholder value and take on a key role in helping Australia meet its energy requirements in the energy transition, said Botten.

AGL has the opportunity to play our part in helping Australia achieve net zero and will do so by leveraging our extensive energy and innovation expertise.

Botten said in a letter to shareholders today

The review has four major targets. It will:

• Explore plans made for both AGL Australia and Accel Energy, focusing on which initiatives should be retained, reviewed, or stopped
  
• Look at pathways AGL could take towards decarbonisation
  
• Analyse the energy asset portfolio required to speed up decarbonisation, as well as the company’s role in providing needed energy and capacity
• Assess and review options for AGL’s capital structure and funding providers

The company also updated investors on upcoming changes to its board and management.

Both Botten and AGL CEO and managing director Graeme Hunt agreed to step down following the demerger’s failure.

Today, Botten said the process to find a new chair is well advanced, having built on work undertaken as part of the demerger process.

The company has also started a global search for a new managing director and CEO.

We are committed to ensuring that these processes are both thorough and timely to ensure stability of leadership to take this company forward.

Botten’s letter reads

AGL will provide an update on the review when it releases its financial year 2022 results. The initial outcomes of the review are expected to be presented in September.

AGL share price snapshot

Despite plenty of drama, the AGL share price has been outperforming in 2022. It has gained 29% year to date.

Though, it’s still nearly 11% lower than it was this time last year. It’s also 67% lower than it was five years ago.

The post What’s with the AGL share price today? appeared first on The Motley Fool Australia.

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More reading

• ASX utilities shares electrifying the market as suspension begins to unwind
• Own AGL shares? Here’s what to know about the company’s latest green hydrogen push  
• Leading brokers name 3 ASX shares to buy today
• Why is the AGL share price heading south on Friday?
• Energy crisis: Which is the better buy, AGL vs Origin?

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 Limited (ASX: RIO) share price is hurting today and is currently down 2.63%.

As one of the largest mining companies in the world, its decline represents a large fall in dollar terms and also has a sizeable impact on the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 is currently up by 0.49%, so Rio Tinto is underperforming noticeably.

Let’s look at a couple of the latest developments.

Iron ore price decline

As a commodity business, Rio Tinto’s revenue, cash flow, net profit after tax (NPAT) and dividends are heavily influenced by changes in resource prices. Iron ore is a particularly important segment because it generates a large amount of Rio Tinto’s annual earnings.

Commsec noted that, overnight, the iron ore price fell by another 1.5%.

The iron ore price has fallen by double digits over the last two weeks. The Rio Tinto share price has dropped by around 15% during that time.

Recession risks increase

According to reporting by The Australian, CBA director of mining and energy commodities research Vivek Dhar noted that US Federal Reserve chair Jerome Powell said it would be “very challenging” to create a soft landing for the US economy and that a recession is a possibility, leading to weakening demand for commodities.

This problem of a potential looming recession is one that many economies face, according to Dhar.

‘Emerging’ economies could be in an even tougher position because of the impacts of COVID-19, Dhar said:

A declining price profile across most mining and energy commodities is justified in light of a weakening demand outlook. A scenario of rising prices from here is likely contingent on China relaxing its COVID-zero policy.

In fact, commodity markets are no longer looking at the promise of significant infrastructure investment in China this year as optimistically as they did just a couple of months ago.

That’s because current conditions in China are clearly pointing to risks of surpluses in commodity markets, particularly steel.

We think the likelihood that China will relax its COVID-zero policy will increase after the 20^th National Party Congress in October.

Rio Tinto share price snapshot

Despite the recent decline, the miner is still up by almost 2% in 2022. However, it is down by 17% over the past year and 6% over the past month.

For comparison, the ASX 200 is down 12% year to date and 10% since this time last year.

The post Could this be weighing down the Rio Tinto share price today? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Could China ‘steel’ the show for the iron ore price?
• The iron ore price has fallen 15% in 2 weeks. So, is the Rio Tinto share price a buy or sell?
• ASX 200 midday update: BHP and Rio Tinto rebound, Westpac rated as a buy
• Rio Tinto share price sinks on iron ore weakness

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Most cryptocurrencies fell today, as the intense selling from last week resumed due to most of the same concerns about the Federal Reserve’s ongoing policies and the economy.

Over the past 24 hours (as of 9:50 a.m. ET today), the price of the world’s largest cryptocurrency, Bitcoin (CRYPTO: BTC), has traded more than 5% down, to roughly $20,780.

The price of the world’s second-largest cryptocurrency, Ethereum (CRYPTO: ETH), has traded nearly 7% down, and the price of the meme token Dogecoin (CRYPTO: DOGE) is down nearly 6%. 

So what

Cryptocurrencies have not fared well, as the Fed has turned hawkish this year in order to tackle inflation. That has included its raising its benchmark overnight lending rate, the federal funds rate, from practically zero to inside a range of 1.5% to 1.75% after its latest 75-basis-point (0.75%) rate hike last week.

As rates rise, riskier assets like cryptocurrencies don’t tend to fare as well because safer assets like U.S Treasury securities now yield more. In addition, Citigroup earlier today raised its expected likelihood of a recession to 50%.

“The global economy continues to be afflicted by severe supply shocks, which are pushing up inflation and driving down growth,” Citi’s chief global economist, Nathan Sheets, wrote in a research note. “But more recently, two further factors have burst onto the scene: Central banks are hiking policy rates with increasing vigor in their fight against inflation, and the global consumer’s demand for goods looks to be softening.”

The Fed has also begun reducing its massive (nearly $9 trillion) balance sheet, which means running off bond holdings. That will essentially remove liquidity from the economy, a move that could hurt Bitcoin even more.

“In a world where liquidity is plentiful, the bitcoins of this world do well,” Ian Harnett, the chief investment officer of Absolute Strategy Research, recently told CNBC. “When that liquidity is taken away — and that’s what the central banks are doing at the moment — then you see those markets come under extreme pressure.”

Harnett thinks the price of Bitcoin could drop to as low as $13,000, which would certainly drag down the rest of the crypto market with it.

Recently, there have been some large sellers of Bitcoin and pressure on investors as the price of Bitcoin drops. The crypto intelligence service Arcane Research noted recently that Bitcoin’s huge drop over this past weekend might have been a result of the largest Bitcoin spot ETF losing half of its assets under management.

Purpose Bitcoin ETF apparently lost more than 24,500 Bitcoin tokens last Friday, its largest since going public on the Canadian Stock Exchange in April 2021. The departure of the assets resulted in the ETF having to sell roughly $500 million of Bitcoin, according to Arcane Research, which can’t have been good for supply-and-demand dynamics. Arcane analysts believe the sudden exit of funds could have been caused by “a forced seller in a huge liquidation.” 

Now what

I certainly agree with Harnett that the price of Bitcoin could continue to march lower, as the Fed continues its balance sheet reduction efforts. However, trying to time markets is nearly impossible.

Long term, I do believe Bitcoin and Ethereum are here to stay and will be good long-term buys at these levels. I have never been a fan of Dogecoin because it has no use in the real world and no technical advantage over other cryptocurrencies, which is why I would recommend avoiding the meme token. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Bitcoin, Ethereum, and Dogecoin are down today appeared first on The Motley Fool Australia.

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More reading

• The ATO is collecting crypto taxes. Here are 5 handy expert tips come tax time
• These 3 cryptos are feeling the Elon Musk effect today
• What to expect from the Bitcoin price following last week’s thrashing
• Is Solana the next Bitcoin?
• Can Ethereum reach $5,000?

Bram Berkowitz has positions in Bitcoin, Dogecoin, and Ethereum. Citigroup is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Archtis Ltd (ASX: AR9) share price is entering the stratosphere on Thursday following a positive company announcement.

At the time of writing, the software security provider’s shares are up 60% to 16 cents.

Let’s take a look at what Archtis released to the ASX this morning.

Archtis completes ‘largest sale’ in its history

Investors are rallying up the Archtis share price after digesting the company’s latest news.

In its statement, Archtis advised it has been awarded a $7 million contract with the Australian Department of Defence.

Under the deal, the existing deployment of Kojensi will be expanded and enhanced within the Defence network.

Kojensi is a highly secure multi-level platform that allows classified information to be shared internally with partners and clients. Users can create, share files and co-author documents in real time on a protected cloud space. It also allows the operator to control how the information is accessed and used.

The value of the contract will be split, with $3.59 million payable on delivery which includes services, support and hardware. The other $3.44 million will come in recurring revenue that will be owed over a two-year period.

The contract begins today and will continue until 30 June 2024. There is also an option for the Department of Defence to extend the agreement for another 12 months on the same terms.

Commenting on the news fuelling the Archtis share price today, managing director Daniel Lai said:

We are pleased to close the largest sale in the company’s history for $7.03m.

Over the past 18 months we have been actively targeting global defence agencies and the broader defence industry due to their compelling need to secure highly sensitive information.

This target market strongly aligns with the unique value proposition our products offer. Kojensi and NC Protect are filling a critical need for zero-trust information security in the well-funded defence and intelligence market and the industries that support them.

Archtis share price snapshot

Despite its huge gains today, the Archtis share price has fallen 16% since the start of 2022.

When looking further back, its shares are down 35% since this time last year.

Based on today’s price, Archtis presides a market capitalisation of around $27.70 million.

The post Here’s why this ASX tech share is rocketing 60% today appeared first on The Motley Fool Australia.

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More reading

• ANZ share price rises as MYOB acquisition rumours swirl
• Why Tesla shares popped then dropped today
• Could Altium shares benefit from the global chip shortage?
• Why is the IGO share price slipping on Thursday?
• Pilbara Minerals share price storms higher amid ‘unprecedented demand’ for lithium

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

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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is pushing higher this morning.

At the time of writing, the banking giant’s shares are up 1.8% to $22.23.

This compares favourably to the rest of the big four banks and the ASX 200 index with its 0.6% gain.

What is driving the ANZ share price higher?

The catalyst for the rise in the ANZ share price today could be speculation that it is on the verge of making a major acquisition.

According to the AFR, the bank is running the rule over accounting software company MYOB, which is used by over 1 million small businesses in Australia.

While there has been speculation floating around for a little while that ANZ could be interested in snapping up MYOB, the rumours have grown louder this week.

This follows reports that ANZ has brought in Macquarie Capital and UBS for advice. The two investment banks are understood to be working on MYOB’s books and modelling what impact it could have on the bank’s customer base.

But a deal for MYOB would not be cheap. Private equity firm KKR bought the accounting software company for $2.4 billion in 2019.

Why MYOB?

ANZ is understood to see the acquisition of MYOB as a way to create a one-stop shop for small business banking. By adding the accounting platform to its offering, ANZ could potentially allow customers to manage their financials and accounting in one place.

This could potentially have ramifications for Xero Limited (ASX: XRO), which has 1.34 million subscribers in Australia and 512,000 subscribers in New Zealand. But as things stand, ANZ has not commented on the matter and this potential transaction remains speculation.

Time will tell if a deal is made and a shake-up of the small business landscape happens.

The post ANZ share price rises as MYOB acquisition rumours swirl appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
• What’s the outlook for ASX 200 bank dividends?
• How ANZ plans to fend off competition from other ASX 200 bank shares with fresh tech
• Worried about a US recession? Here’s what the ASX 200 banks are forecasting
• How does the Macquarie dividend stack up against the ASX big four banks?

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 Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

Investors pushed the share price of Tesla (NASDAQ: TSLA) up 4% this morning, likely after the electric vehicle (EV) stock made double-digit percentage gains yesterday following comments by Tesla CEO Elon Musk. But by midday today, the EV stock had given up nearly all of its early gains and was essentially flat as of 3 p.m. ET. 

So why the retreat? It may have to do with Tesla’s Shanghai factory. 

So what 

Reuters reported today that Tesla’s Shanghai factory will suspend operations for two weeks as the EV company makes some upgrades to the factory. That’s not earth-shattering news for the company or its investors, but the temporary closure comes on the heels of the plant suspending operations this spring due to COVID-19.

Investors may be overreacting a bit to this news because they’re still a bit nervous about any reports about the Shanghai plant stopping its operations. China’s strict zero-COVID policy caused the factory to halt production for 22 days back in the spring and resulted in the company missing some production goals for the plant. 

But the plant upgrades should actually be a good thing for Tesla and investors. Reuters reports that the upgrades should help the EV company increase output at the plant to a new record high and help the factory reach a weekly production of 22,000 vehicles. 

Now what 

It’s not surprising that investors are a bit nervous about the news of a plant temporarily suspending operations, but Tesla shareholders shouldn’t be concerned about today’s news. 

The temporary suspension of the plant should ultimately help the company produce more vehicles and keep the company on track to make even more vehicles this year than last. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla shares popped then dropped today appeared first on The Motley Fool Australia.

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• Why Tesla stock soared today
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Chris Neiger 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 Tesla. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Altium Limited (ASX: ALU) share price has tracked lower in 2022 and is now in the red by 42% since the start of the year.

At the time of writing, the electronic design software company’s shares have gained 2.32% on the day to trade at $26.29 apiece.

In broad market moves, the S&P/ASX All Technology Index (ASX: XTX) has also slipped in 2022 — by 38% — but is up 1.73% from the open today.

Altium share price to benefit from chip shortage?

Demand and supply gaps for semiconductor chips have led to global shortages of the product. These shortages have plagued many industries since 2020 when the COVID-19 pandemic began.

“Last year, supply tightness dovetailed with the rebound in consumer and business demand, causing a lot of headaches across the supply chain,” says Counterpoint Research.

It says these shortages are starting to ease, and that inventories are starting to build back up in order to fill demand.

“The issue now isn’t shortages but a shock to the system from lockdowns, which is having a domino effect across China at the moment,” it added.

Nevertheless, analysts at Morgan Stanley note the global semiconductor chip shortage could be a net positive for ASX shares such as Altium.

The Morgan Stanley team reckons the market has overlooked how the company is benefiting from the current supply-chain headwinds plaguing global markets, Hans Lee of Livewire writes.

Specifically, global chip shortages have led to a surge in demand for Altium’s products, it says, which is a potential sales tailwind.

The broker values Altium at $35 per share on a buy recommendation.

There are still plenty of other risks to contend with right now for ASX shares. Plus, with the Altium share price down more than 28% in the last 12 months, it has a way to go before recovering to former highs.

The post Could Altium shares benefit from the global chip shortage? appeared first on The Motley Fool Australia.

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• Why no news could be good news for the Altium share price
• 5 things to watch on the ASX 200 on Tuesday
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• Can the Altium share price regain its previous highs in 2022?

Motley Fool contributor Zach Bristow 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 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 in early trade, down 2.7%.

IGO shares closed yesterday trading for $10.41 and are currently trading at $10.13 apiece.

This comes following several price-sensitive updates from the S&P/ASX 200 Index (ASX: XJO) battery metals miner this morning.

What updates are impacting the IGO share price today?

The IGO share price is sliding despite the company reporting that its wholly-owned subsidiary, Western Areas Limited, has satisfied the Stage-1 requirements of its Earn-In and Joint Venture Agreement (EIJVA) with Metal Hawk Ltd (ASX: MHK).

The Stage-1 agreement required IGO to spend $3 million on exploration across the JV projects. It achieved this exploration spend ahead of schedule. IGO is now entitled to a 51% joint venture interest in Metal Hawk’s Kanowna East, Emu Lake and Fraser South projects.

The IGO share price could also be impacted by the miner announcing it will proceed with Stage-2 of the EIJVA. That requires the company to spend another $4 million on exploration to earn an additional 24% joint venture interest.

Diamond drilling is due to recommence at Kanowna East in July.

Metal Hawk retains 100% of the gold rights at Kanowna East and Emu Lake.

Commenting on the progress, Metal Hawk managing director Will Belbin said:

We have been really pleased with the pace and quality of exploration carried out by our joint venture partner, which has exceeded its obligation under the earn-in agreement, and with the results achieved to date.

The election by IGO to progress to Stage-2 is a tremendous outcome for Metal Hawk that will see a substantial step-up in exploration expenditure without drawing on shareholders’ funds. We also see this as a strong endorsement of the quality and potential of these projects.

What else was announced?

In a separate announcement that also hasn’t lifted the IGO share price this morning, ST George Mining Ltd (ASX: SGQ) welcomed the miner as its 25% Joint Venture partner.

The JV partnership entails an exploration licence (E29/638), which is at the core of St George’s Mt Alexander Project, focused on nickel, copper and platinum-group elements (PGE).

According to the release:

E29/638 covers the high-grade Cathedrals, Stricklands, Investigators and Radar nickel-copper-PGE discoveries… St George (75%) manages activities on E29/638, with IGO retaining a 25% non-contributing interest until there is a decision to mine.

The partnership follows on from IGO’s successful takeover of Western Areas.

With a 13-line kilometre seismic survey completed, and a moving loop electromagnetic survey underway, drilling is expected to kick off in four weeks.

IGO share price snapshot

Although it’s struggled in 2022, the IGO share price remains up 34% over the past 12 months. That compares to a full year loss of 11% posted by the ASX 200.

The post Why is the IGO share price slipping on Thursday? appeared first on The Motley Fool Australia.

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• Down 12% in June, is the IGO share price a buy?
• Is it too late to buy ASX lithium shares?
• Here’s why the IGO share price is making headlines on Wednesday
• Why Macquarie still sees ‘material upside’ for ASX lithium shares
• Is the ASX about to wave goodbye to this billion-dollar nickel miner?

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 JB Hi-Fi Limited (ASX: JBH) share price tumbled to a 52-week low of $36.69 last week.

The retailer has been hammered by external factors beyond its control which has put selling pressure on its shares.

At Wednesday’s market close, JB Hi-Fi shares finished 0.41% lower to $39.37.

You may be wondering what’s the best way to value a company in the current climate. Here’s one way.

How do you value JB Hi-Fi shares?

A common way among investors to determine if an ASX share is cheap or expensive is to look at the price-to-earnings (P/E) ratio. This metric tells you how much the company is worth.

A P/E ratio can be broken down as the relationship between a company’s share price and its earnings per share (EPS).

At the time of writing, JB Hi-Fi has a P/E ratio of 9.34. The formula to work out the P/E ratio is the current share price divided by EPS.

For context, JB Hi-Fi’s peers, Harvey Norman Holdings Ltd (ASX: HVN) and Kogan.com Ltd (ASX: KGN) hold a P/E ratio of 5.71 and 169.49, respectively.

Due to the similar market capitalisation compared to Harvey Norman, JB Hi-Fi shares are slightly on the more expensive side.

Essentially, what this means is that you are paying $9.34 for every dollar that JB Hi-Fi collects in earnings.

In addition, a P/E ratio shows how much growth can be expected when invested in a company.

For example, a high P/E ratio tell us that investors are happy to pay more per share than what the company is earning. This is extremely common with new market entrants that have the liquidity to pursue high growth opportunities.

On the other hand, a low P/E ratio is more suited to stable companies that have an established market share. It could also mean that its shares are trading at a bargain given the share price fall.

JB Hi-Fi share price summary

Since the start of May, the JB Hi-Fi share price has plummeted 25% on the back of weakened investor sentiment.

Soaring inflation levels mixed with rate hikes by the Reserve Bank of Australia have sent investors fleeing for safe-haven assets.

Shares in any retail environment are always the first to feel the impact of any economic downturn.

JB Hi-Fi has a market capitalisation of approximately $4.32 billion and has roughly 109.33 million shares on issue.

The post How do you value the JB Hi-Fi share price in June? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman Holdings Ltd. and Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. and Kogan.com ltd. 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 Sayona Mining Ltd (ASX: SYA) share price has fallen more than 50% in the past month.

A perfect storm of bearish sentiment across the lithium industry amid a global economic slowdown has impacted the company’s shares.

Despite the doom and gloom, Sayona Mining released its investor presentation yesterday highlighting its strategic direction.

At Wednesday’s market close, the emerging lithium producer’s shares finished 7.14% lower to 13 cents.

What were the key takeaways from the presentation?

While the Sayona Mining share price retraced to levels not seen since March 2022, investors were treated to the company’s growth plans.

In its presentation, management touched on the strategic portfolio of its lithium assets in Quebec, Canada.

The Abitibi and Northern Hubs boast one of the largest combined spodumene resources in North America.

The near-term objective for the company is to supply spodumene to the North American lithium battery supply chain by 2023.

In particular, the Abitibi Hub is targeting production of up to 180,000 tonnes of spodumene concentrate by 2024. This is expected to be ramped up in the following years (2025 – 2026) with nameplate capacity of up to 220,000 tonnes annually.

Furthermore, the Northern Hub has a forecasted nameplate capacity of up to 200,000 tonnes of spodumene concentrate equivalent by 2027.

However, this is dependent upon Sayona Mining developing its refinery operation to support lithium production from the Northern Hub.

The location of the company’s lithium assets in Quebec has many advantages to satisfy the growing demand for battery capacity. This includes being low-cost, having renewable hydropower and an established infrastructure, as well as close proximity to the North American battery market.

Sayona Mining stated that it is targeting end-user customers throughout the EV production chain. This consist of battery manufacturers, auto original equipment manufacturers (OEM), commodity trading houses and more.

Sayona Mining share price snapshot

A turbulent past couple of months on the ASX has led the Sayona Mining share price to reverse its astronomical gains.

Nonetheless, when looking at the past 12 months, its shares are still up 106%.

Sayona Mining commands a market capitalisation of approximately $1.07 billion, with a massive 8.24 billion shares on its books.

The post Considering investing in Sayona shares? Here’s the latest news from the company appeared first on The Motley Fool Australia.

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More reading

• Is this why ASX lithium shares are being crushed today?
• The Sayona Mining share price has crashed 50% in a month. What’s going on?
• Which ASX lithium shares are producing and which are not?
• Why Macquarie still sees ‘material upside’ for ASX lithium shares
• Why Nanosonics, REA, Sayona Mining, and Zip shares are dropping

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

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