The Austal Limited (ASX: ASB) share price is on the move during Friday morning trade.

This comes after the shipbuilder announced it has won a new contract with the United States Coast Guard (USCG).

At the time of writing, Austal shares are swapping hands at $2.30 apiece, up 27.78%.

What’s the details of the contract?

According to its release, Austal revealed it has been awarded a potential US$3.3 billion (A$4.35 billion) contract from the USCG.

Under the deal, Austal will design and construct up to 11 Offshore Patrol Cutters (OPC) at its steel shipbuilding facility in Mobile, Alabama.

Construction of the first vessel is expected to commence next year, with an option for another 10 ships to be built.

The Coast Guard’s 110 metre steel OPCs will provide a crucial capability for the USCG in conducting a variety of missions. This includes law enforcement, drug and migrant interdiction, and search and rescue operations.

Management noted that although the contract has been awarded in FY23, it will positively impact some of Austal’s FY22 EBIT.

As such, the company now expects its FY22 EBIT to be higher than the previously forecast $107 million.

However, the exact figure is yet to be quantified but will be provided in due course.

Evidently, this appears to have excited investors, sending the Austral share price to an 11-month high.

Austal CEO, Paddy Gregg welcomed the foreseeable contract, saying:

The United States Coast Guard’s new Offshore Patrol Cutters are an outstanding opportunity for Austal USA to further demonstrate the shipyard’s new steel shipbuilding capability; based on years of proven construction experience through the delivery of the LCS and EPF programs for the United States Navy.

Austal share price summary

Despite today’s euphoric gains, Austal shares have continued to move in circles over the past 12 months. Its shares are up around 11% for the period.

On valuation grounds, Austal commands a market capitalisation of roughly 669.44 million.

The post Why is the Austal share price sailing 28% higher today? appeared first on The Motley Fool Australia.

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More reading

• These ASX 200 mining shares are digging a deeper hole on Friday
• Why did the BHP share price take a tumble in June?
• Domestic bliss: Praemium share price surges 18% after international business split
• What’s clamping down on the Piedmont Lithium share price?
• Regis Resources share price jumps 11% amid Twiggy Forrest raid

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 Austal Limited. 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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S&P/ASX 200 Index (ASX: XJO) mining shares are dragging on the market on Friday, adding to their longer-term poor performance.

The S&P/ASX 200 Materials Index (ASX: XMJ) is currently the market’s second-worst performing sector behind the S&P/ASX 200 Energy Index (ASX: XEJ), slumping 1.14%. It’s also fallen around 13% over the last month.

Among today’s biggest weights are resources giants BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO). They’re down around 2.3%, 1.7%, and 1.6% respectively.

For context, the ASX 200 is trading 0.3% higher right now.

Let’s take a closer look at what might be dragging down ASX 200 mining giants on Friday.

What’s weighing on these ASX 200 mining shares?

ASX 200 mining shares are struggling on Friday after commodity prices dived overnight, marking an abysmal quarterly performance.

The value of zinc led the downturn, falling 6.2% in Thursday’s session overseas while that of nickel slumped 4.7% to US$22643.00 per tonne. Copper prices also fell 1.7% to US$8254.25 a tonne.

Those movements included, metal prices tumbled between 20% and 40% in the June quarter, according to CommSec. That led copper to record its worst quarterly performance since 2011.  

Iron ore futures also continued its multi-session slump, falling 0.1% to reach US$130 per tonne.

Though, it’s not all bad news out of the sector this morning.

The Regis Resources Limited (ASX: RRL) share price is launching 10.2% higher amid reports Fortescue Metals’ Andrew Forrest was aiming to buy an additional 15% hold in the company.

However, Forrest has since abandoned any such plans after failing to snap up the stake for $168 million, reports The Australian.

The post These ASX 200 mining shares are digging a deeper hole on Friday appeared first on The Motley Fool Australia.

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• Why did the BHP share price take a tumble in June?
• Why did the Soul Pattinson share price go backwards in June?
• Best ASX shares to buy in July 2022
• 5 things to watch on the ASX 200 on Friday
• These were the best performing ASX 200 shares in June

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 BHP Group Ltd (ASX: BHP) share price had a tough month in June.

During the period, the mining giant’s shares dropped 7.5%.

Though, this is actually better than the ASX 200 index, which tumbled 9% over the same period.

Why did the BHP share price tumble lower in June?

As well as battling broad market weakness, the BHP share price came under pressure from a pullback in the iron ore price.

For example, on Thursday the price of iron ore for September delivery fell a further 2.7% on China’s Dalian Commodity Exchange. This put the steel-making ingredient on track to record a quarterly loss of approximately 11%.

In addition, the copper price has come under pressure significant pressure. So much so, the metal tumbled again on Thursday to record its biggest quarterly slump since 2011. This has been driven by concerns that a recession could impact demand.

Finally, the announcement of new coal royalties in Queensland weighed on mining shares during the month.

Is this a buying opportunity?

Analysts at Goldman Sachs appear to see the weakness in the BHP share price as a buying opportunity.

A note from earlier week reveals that its analysts have resumed coverage on the Big Australian with a buy rating and $49.40 price target.

This implies potential upside of 22% for investors over the next 12 months from current levels.

In addition, Goldman Sachs is forecasting fully franked dividends per share of US$3.50 in FY 2022 and then ~US$2.65 in FY 2023. Based on the current BHP share price and current exchange rates, this implies yields of 12.5% and 9.5%, respectively.

All in all, this suggests that there’s a total potential return on offer of almost 35% for investors over the next 12 months.

The post Why did the BHP share price take a tumble in June? appeared first on The Motley Fool Australia.

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• These ASX 200 mining shares are digging a deeper hole on Friday
• Best ASX shares to buy in July 2022
• How have ASX 200 mining shares fared over June?
• Here are 2 top ASX 200 dividend shares to buy right now according to experts
• Which ASX 200 mining share offers the best dividend yield for FY22?

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 Praemium Ltd (ASX: PPS) share price is surging 18% into the green on Friday. It now trades at 55 cents apiece at the time of writing.

Despite no market-sensitive news today. Praemium did release a critical update regarding the divestment of its international business after the closing bell yesterday.

What did Praemium announce?

The ASX tech company, which provides financial planning tools to the wealth management industry, advised it had successfully completed the divestment of its operations in the United Kingdom, Jersey, Hong Kong and Dubai.

Operations were sold off to Morningstar, Inc, where Praemium received net proceeds of 35 million British pounds, “consistent with the originally agreed price”.

Praemium said the divestment would allow it to focus its resources on the domestic market, honing in on its market of sophisticated wealth advisers and their clients.

Speaking on the update, Praemium CEO Anthony Wamsteker said the company was “delighted to achieve the milestone”.

“[T]his successful divestment will allow Praemium to focus on the enormous opportunity that the Australian wealth market offers.

Morningstar has been a tremendous partner as we have worked collaboratively through the sale conditions, and is an ideal owner of the International Business. We wish them well.

Buyback and special dividend to come

Praemium intends to return the surplus of its net proceeds gained from the sale back to its shareholders by way of an on-market buyback and special dividend.

After considering all future investment and liquidity needs, the board has approved the return of approximately $50 million to shareholders.

Just over $23 million has been authorised for the buyback, to buy up to 10% of Praemium’s issued capital after its FY22 results.

Meanwhile, it also declared a special dividend of 5 cents per share, resulting in a payout of $25.7 million.

Despite today’s major gains, the Praemium share price has sunk more than 49% into the red over the past 12 months.

The post Domestic bliss: Praemium share price surges 18% after international business split appeared first on The Motley Fool Australia.

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More reading

• What’s clamping down on the Piedmont Lithium share price?
• Regis Resources share price jumps 11% amid Twiggy Forrest raid
• Why did the Aussie Broadband share price fall 20% in June?
• Locked in the CSR dividend? Here’s the payment info
• I loved this ASX share a year ago, and it’s still my long-term pick: expert

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 Praemium Limited. The Motley Fool Australia has recommended Praemium Limited. 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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June was a rough month for the Pilbara Minerals Ltd (ASX: PLS) share price despite plenty of good news from the ASX lithium stock.

As of the end of the month, the Pilbara share price was $2.29. That’s 22.37% lower than it was at the final close of May.

For context, the S&P/ASX 200 Index (ASX: XJO) slumped nearly 9% in that time.

So, what weighed on the ASX lithium favourite last month? Let’s take a look.

What happened to the Pilbara Minerals share price?

The Pilbara Minerals share price fell alongside other ASX lithium stocks last month. That’s despite plenty of seemingly good news coming from the lithium giant’s camp.

The company revealed its next CEO and managing director, former chief operating officer Dale Henderson.

It also announced key terms of a proposed joint venture with Calix Ltd (ASX: CXL). The venture could see a demonstration plant capable of producing lithium salts developed at the Pilgangoora Project.

Pilbara also announced it estimates Pilgangoora’s spodumene concentrate production increased 54% to between 123,000 and 127,000 dmt in the third quarter. That would see the company reaching the higher end of its previously outlined full-year guidance.

Perhaps more excitingly, it accepted a pre-auction bid before its sixth Battery Material Exchange (BMX) auction. The successful bid – US$6,350 per dry metric tonne (dmt) for 5,000 dmt on a 5.5% lithia FOB Port Hedland basis – was “evidence of the unprecedented demand for battery raw materials,” Henderson said. He continued:

Contrary to recent suggestions that the market has peaked, the evidence we are seeing at the coal-face with our customers, including this pricing outcome, suggests that demand remains incredibly strong, with a continued healthy outlook for the foreseeable future.

Henderson’s comments appear to reference a bearish note out of Goldman Sachs that seemingly contributed to a major sell-off event among lithium shares in early June.

The Pilbara Minerals share price tumbled 22% on 1 June. It then suffered a rollercoaster of smaller gains and falls over the rest of the month.

It has also started July in the red, down 0.66% to $2.275 at the time of writing.

The post Why did the Pilbara Minerals share price tumble 22% in June? appeared first on The Motley Fool Australia.

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• Here are the 3 most heavily traded ASX 200 shares on Thursday
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• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• ASX 200 midday update: Carsales sinks, Liontown jumps on Ford agreements
• After the sell-off, experts think these 2 lithium ASX stocks are great buys

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. 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 Piedmont Lithium Inc (ASX: PLL) share price is in the red on Friday morning, currently down 3.67%. This comes despite no fresh news from the ASX lithium share.

At the time of writing, Piedmont shares are trading at 52.5 cents apiece, bringing losses to around 30% for the year to date. They are also down more than 40% over the past month.

In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is down 0.93% in early trade on Friday. The two have tracked each other closely in 2022, as seen below.

What’s up with the Piedmont Lithium share price?

Despite its performance this year, brokers remain constructive on the Piedmont Lithium share price. The company has buy ratings from 100% of analysts covering it, according to Bloomberg data.

The JP Morgan team likes Piedmont’s four key lithium projects that, once completed, should ensure the company is a “low-cost producer of both spodumene (preferred feedstock for lithium hydroxide) and lithium hydroxide (required for long-range EV batteries)”.

Meanwhile, the company also announced this week that its 25%-owned North American Lithium (NAL) program in Canada plans to commence lithium spodumene production by 2023.

The plant will require significant upgrades to infrastructure to bring it up to speed and ensure maximum capacity, efficiency, and safety.

Piedmont owns the site along with 75% owner Sayona Mining Ltd (ASX: SYA).

Despite the update, investors have punished the Piedmont Lithium share price, sending it to 52-week lows in today’s session.

Meanwhile, the price of lithium remains steady and is still up 434% in the past 12 months, or 1.5% in the past month.

Piedmont Lithium shares have collapsed around 50% during the past year of trade.

The post What’s clamping down on the Piedmont Lithium share price? appeared first on The Motley Fool Australia.

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• These 3 ASX All Ordinaries shares are hitting new 52-week lows today
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• Which ASX lithium shares are producing and which are not?
• Why has the Piedmont Lithium share price cratered 13% in a week?

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 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 Regis Resources Limited (ASX: RRL) share price is on course to end the week on a high.

In morning trade, the gold miner’s shares are up 11% to $1.44.

Why is the Regis Resources share price storming higher?

Investors have been bidding the Regis Resources share price higher today amid reports that Andrew ‘Twiggy’ Forrest is wanting to increase his stake in the company.

According to the AFR, the mining billionaire was seeking to acquire a 15% stake in the company for $1.48 per share. This represents a 13.8% premium to its last close price and values the stake at $168 million.

It’s understood that Twiggy had enlisted Barrenjoey’s equities desk to source the shares for his Wyloo Consolidated Investments business, which reportedly already owns a 4.9% stake in Regis Resources.

However, it was 15% or nothing as far as Twiggy was concerned, with his order made on a kill or fill basis.

Did it fill?

Unfortunately for Twiggy, his order was not a success according to the AFR. It quotes a message from Barrenjoey:

We received interest for in excess of 12% of the company. When aggregated with Wyloo’s existing position (4.9%), the combined stake would not have met 19.9% target as stipulated at launch. As a result, the transaction did not proceed.

Nevertheless, this news has caught the eye of investors on Friday. Which has led to the Regis Resources share price leaping higher.

Should you invest?

One broker that would be supportive of Twiggy’s ambitions is Macquarie. Last week the broker put an outperform rating and $2.20 price target on the company’s shares.

Even after today’s gain, this still implies potential upside of over 50% for investors over the next 12 months.

The post Regis Resources share price jumps 11% amid Twiggy Forrest raid appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
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• 5 things to watch on the ASX 200 on Tuesday
• These are the 10 most shorted ASX shares
• Down 18% in a week, what’s stolen the shine from the Regis Resources share price?

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 Aussie Broadband Ltd (ASX: ABB) share price had a difficult month in June.

To finish the month, shares in the telco fell more than 20% into the red, bringing losses to over 30% for the year to date.

In broad market moves, the S&P/ASX 200 Communication Services Index (ASX: XTJ) also slipped 3.5% into the red last month and is down 16% since January.

What’s up with the Aussie Broadband share price?

Despite no news from the company in June, investors sold off Aussie Broadband shares at pace last month in tandem with the broad sector and the wider market.

The last we heard from the telco was back in May regarding its Q3 FY22 update. It reported a 42% year on year increase in total active broadband services to 697,083.

These figures weren’t inclusive of Aussie Broadband’s acquisition of fellow telco provider Over The Wire on 15 March 2022.

Folding in the acquisition and the company expects “annual cost synergies of between $8–$12 million within 3 years”.

Over The Wire is expected to deliver approximately $11 million in EBITDA “for the 3.5 months that ABB has owned OTW” in FY22.

Market punishment

Investors weren’t satisfied with the announcement at all and sent the share tumbling.

Just a week earlier investors had piled into Aussie Broadband shares at pace, driving prices to a 52-week high of $5.95 on 21 April.

However, shares plunged more than 28% on the day of the trading update announcement.

The market underwent a serious correction in June and ASX telecommunications shares weren’t immune to downside.

The broader communications sector was hit equally as hard and the XTJ fell to a 52-week low on 17 June.

As seen on the chart below, the Aussie Broadband share price followed suit soon after. It is now down 29% this year to date but has clipped a 13% gain in the last 12 months.

The post Why did the Aussie Broadband share price fall 20% in June? appeared first on The Motley Fool Australia.

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• Aussie Broadband share price dips despite telco named ‘Australia’s most trusted’
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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 Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. 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 CSR Ltd (ASX: CSR) share price is edging higher as the company pays out its latest dividend today.

The building products company’s shares are currently up 1.23% trading at $4.11 apiece.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is also hovering in positive territory during Friday morning trade. The benchmark index is up 0.65% to 6,610.8 points.

Let’s take a closer look at the ASX dividend share‘s payment today.

CSR pays out its biggest ever final dividend

On 11 May, CSR reported a robust performance in its full-year results for the year ending 31 March (YEM22).

Management said that elevated market activity across the residential housing sector had led to business growth.

The company reported trading revenue rose 9% to $2.3 billion compared to the prior corresponding period. On the bottom line, net profit after tax (NPAT) surged by 20% to $193 million.

With both metrics representing an increase, the board declared a final dividend of 18 cents per share.

This reflects an improvement of 24% on CSR’s previous final dividend of 14.5 cents apiece and is the biggest ever paid by the company. Note, the payment amount does not include the special dividend of 9.5 cents per share that was added to the YEM21 dividend.

When calculating against the current share price, CSR has a dividend yield of 7.65%.

CSR share price summary

The CSR share price has lost around 30% in 2022 after shares took a steep tumble in May and have been heading south ever since.

Shares in the company are down almost 27% over the past 12 months.

CSR has a price-to-earnings (P/E) ratio of 7.42 and commands a market capitalisation of roughly $1.97 billion.

The post Locked in the CSR dividend? Here’s the payment info appeared first on The Motley Fool Australia.

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• ASX 200 midday update: Energy shares drop, PointsBet jumps
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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 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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Datt Capital principal Emanuel Datt explains why one particular ASX share remains his best pick to hold for many years.

The ASX share for a comfortable night’s sleep

The Motley Fool: If the market closed tomorrow for four years, which stock would you want to hold?

Emanuel Datt: I think given the context of the market… I said Whitehaven Coal Ltd (ASX: WHC) last time — and since then it’s up 100%, incidentally. Not bad. 

I think that ultimately Whitehaven has a really big advantage. Again, the advantages that I pointed out about being in New South Wales. But also I think that just from a valuation perspective, they’re just, B, the management [is] trying to capture that value for shareholders via buybacks and, C, I think that just the microeconomics tailwinds, the type of coal they’re producing will persist for at least another 18 to 24 months.

A four-year time frame with something that’s priced at less than one times cash flow, and they have to be returning cash back to shareholders, I think that just makes it a bit of a no-brainer for me.

MF: Even if coal prices cool off in four years’ time you’ll still be ahead of the current share price. Is that how you’re feeling?

ED: Yeah, absolutely. 

For a commodity producer with long-life assets, I think a rule of thumb would be you see it trading at maybe six to eight times earnings. Sure, I understand that the oil price has run significantly, four times or so over the last 12 months. But I think that ultimately even if the coal prices are halved from here, I think it still looks very, very cheap. 

I also think that because, ultimately, some companies can become value traps, right, if they’re just sitting on the cash and not doing much with it. But I think the [Whitehaven] management have been quite proactive in listening to shareholders and actively trying to capture as much value via buybacks.

I wouldn’t be surprised to see them increase their buyback, given they’ve bought back 10%, I think, in probably a three-month period. I wouldn’t be surprised to see them apply for 20% or 25% or at least provide themselves with the flexibility to go that hard. 

If the stock price does fall then the company would basically be eating itself, right? Which is a great outcome for shareholders.

MF: It’s great that you have the consistency to back up Whitehaven from your last chat because if one year ago you thought that’s the one to hold for four years, then logically it should still be!

ED: Yeah, well, I think that’s the thing. You never know how good or bad your stock picks are but I think that there are very clear and fundamentally sound reasons why we want to maintain exposure to this. And I think that even though the whole market is looking weak, [you] just want to be invested in the strongest sectors in rough times.

The post I loved this ASX share a year ago, and it’s still my long-term pick: expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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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