The Vulcan Energy Resources Ltd (ASX: VUL) share price is falling on Wednesday morning.

At the time of writing, the clean lithium developer’s shares are down 1% to $12.81.

Why is the Vulcan share price falling?

The Vulcan share price is trading lower today after a broad market selloff offset the release of a positive announcement.

That announcement reveals that Vulcan has secured a site for the planned Central Lithium Plant (CLP) of its Zero Carbon Lithium Project.

According to the release, the company has signed an agreement with chemical park management company, Infraserv, for a site located in the Industriepark Hochst just outside of Frankfurt in Germany.

The release notes that Hochst is one of the largest chemical sites in Europe and is home to 90 companies. These include Celanese, Clariant, Nobian, and Sanofi.

What is the CLP?

Vulcan’s CLP will be used as a processing hub. From this site the company will process lithium chloride from multiple combined geothermal and lithium sorption plants into lithium hydroxide monohydrate.

This lithium hydroxide monohydrate will then be transported to Vulcan’s European customers in the battery and electric vehicle industry. It believes this will dramatically lower the transport footprint of the current lithium supply chain.

The company will now work on obtaining the necessary permits in the chemical park to make the construction of the CLP a reality.

Vulcan’s Managing Director, Dr. Francis Wedin, commented: “Securing a site for the Central Lithium Plant is an important step toward the execution of the Zero Carbon Lithium Project. Importantly, the location allows for low carbon transport options from our nearby project areas, as well as renewable energy to power the proposed plant, which underpins our commitment to minimising our carbon footprint in each step of our process. This follows on from the first production of battery quality lithium hydroxide from our pilot plant, announced on 27th September.”

The post Vulcan (ASX:VUL) share price falls despite positive lithium plant update 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 Bruce Jackson.

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The iron ore price found its feet recently and BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shareholders may have China’s energy crisis to thank for this.

In case you forgot, the price of the steel making mineral plunged by more than half.

The commodity hit a record high over US$200 a tonne in May 2021 before bouncing last week. It’s currently trading at around US$100/t.

Power blackouts a boon for BHP and Rio Tinto

It’s not easy to nail down what prompted bargain hunters to jump in to support the price. But Macquarie Group Ltd (ASX: MQG) suspects its mainly to do with the rolling power blackouts that’s gripping parts of China.

The Chinese government is ordering industries and households to ration the use of electricity. This has impacted on electric arc furnace (EAF) operators more than traditional steel mills.

“Macquarie Commodity Strategy Team believes lower EAF operation could also be behind the iron ore price rebound late last week,” said Macquarie.

“As current production curtailment has shifted from emission reduction driven to power supply shortage driven, EAF mills have seen a clear drop in their operating rate over past two weeks, helping demand for integrated mills that use iron ore.”

Iron ore price stabilises at expense of EAF operators

EAF is a greener way of producing steel but it requires more power. The process uses scrap steel and direct reduced iron as raw material.

As output from EAF facilities are cut due to China’s electricity shortage, iron ore hungry steel mills are having to step up.

BHP and Rio Tinto share prices getting lift from China’s misstep

If so, this is a double-own-goal by the Chinese government and the irony shouldn’t be lost on ASX investors.

The crash in the iron ore price was in no small part triggered by the Communist Party’s policy decisions.

Officially, it wanted to drastically cut pollution ahead of the Winter Olympics and ordering steel mills to curtain production was an easy way to achieve this.

Unofficially, they seething that Australia was benefiting from record iron ore prices.

Market manipulation malfunction

But what significantly contributed to China’s power crisis was its decision to ban Australian coal imports.

Its aging infrastructure combined with a shortage of coal in that country have been blamed for China’s current predicament.

China’s addiction hard to break

To rub salt to the Chinese wound, iron ore exports from ASX iron ore producers, including Fortescue Metals Group Limited (ASX: FMG), have increased lately.

“The combined shipping rate for RIO, BHP and FMG in September to date has increased above the 800mtpa mark, at 847mtpa,” added Macquarie.

“By contrast, Vale shipments slowed by 12% to 6.2mt.”

Despite strong political will, China and Australia may not be able to sever economic ties as easily as they would like.

The post How China’s energy crisis could be good for BHP (ASX:BHP) and Rio Tinto (ASX:RIO) appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Fortescue Metals Group Limited, and Rio Tinto Ltd. 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 Bruce Jackson.

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The Regional Express Holdings Ltd (ASX: REX) share price is having a great week despite the company’s planned take off being pushed back again.  

The regional-focused Australian airline announced it had delayed its planned restart to flying for the second time on Monday. The delays are due to COVID-19 infections and lockdowns in Victoria and New South Wales, and REX’s need for “lead time” ahead of scheduled flights so as to sell tickets.

While the only recent news the market has heard from REX isn’t exactly positive, the company’s share price has been gaining.

At the time of writing, the REX share price is $1.49, 6.43% higher than it was at Friday’s close.

Let’s take a closer look at the news that might be boosting the airline’s share price this week.

The REX share price is soaring this week

The REX share price is taking off this week despite its fleet staying grounded.

REX announced that the suspension of its domestic services and reduction of regional services will continue until 31 October.

The airline’s planned resumption coincides with when it expects its front-facing staff to be fully vaccinated against COVID-19.  

While this week’s news from REX seems unfortunate, the company’s share price is soaring.

And it’s not alone in its gains. Shares in Flight Centre Travel Group Ltd (ASX: FLT), Webjet Limited (ASX: WEB), and Qantas Airways Limited (ASX: QAN) have also been gaining this week.

The travel sector’s boost might be due to good news from the federal, New South Wales, and Victorian governments.

Over the weekend, Prime Minister Scott Morrison told Channel 7 there’s no reason states shouldn’t open their borders once 80% of the country’s population is fully vaccinated.

As of yesterday evening, 76.7% of Australians have had one COVID-19 jab and 52.6% are fully vaccinated.

Additionally, vaccinated people in New South Wales and parts of Victoria are set to exit lockdown on 11 October. Travel between the 2 states is expected to restart on 5 November.

All the good news might have boosted the REX share price and that of its peers.  However, it hasn’t been enough to get the regional airline’s shares back into the green.

REX’s stock has fallen 28% year to date. Though, it is 17% higher than it was this time last year.

The post Why has the REX (ASX:REX) share price gained 6% so far this week? appeared first on The Motley Fool Australia.

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• Regional Express (ASX:REX) share price takes flight despite extended stand-downs
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• Regional Express (ASX:REX) share price up on 33% net loss after tax improvement

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 owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Afterpay Ltd (ASX: APT) share price is sliding in Wednesday’s premarket, indicating further losses in September with just three days left of the month.

Afterpay shares have closely tracked the performance of Square Inc (NASDAQ: SQ) after the US payments company came forth with a $39 billion takeover offer.

The US market tumbled on Tuesday night as rising bond yields pushed investors out of popular tech shares. The Nasdaq Composite logged steep losses, down 2.83% to a 1-month low.

Square falters overnight

The Square share price couldn’t escape the rout in the technology sector, sliding 5.97% to a 2-month low of US$242.70.

When Square made its offer to acquire Afterpay on 2 August, its shares jumped 10.16% from US$242.84 to US$272.38 on the day.

Square is now trading at its lowest levels since its takeover offer.

In addition, the largest US-listed BNPL player, Affirm Holdings Inc (NASDAQ: AFRM) fell sharply, down 10.79% to US$144.52.

The heavy-tech based selling across US tech and payments peers paints a grim picture for how the ASX tech sector might perform on Wednesday.

What does this mean for the Afterpay share price?

Under the terms of Square’s takeover, Afterpay shareholders will receive a fixed exchange ratio of 0.375 Square shares for each Afterpay share they hold on the record date.

After last night’s selloff, the fixed exchange ratio of 0.375 represents around US$91.01 worth of Square stock.

Converting this figure back into Australian dollars at the current exchange rate would, theoretically, value the Afterpay share price at $125.99.

It’s worth mentioning that the Afterpay share price has typically traded at a discount to the theoretical value.

For example, the Square share price hit all-time highs of US$289.23 on 5 August. This implies a theoretical value of $149.70 for Afterpay.

However, the Afterpay share price has only rallied as high as $135.70 since the takeover offer.

The post Square slides 5%. What does this mean for the Afterpay (ASX:APT) share price? appeared first on The Motley Fool Australia.

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• These ASX shares are surging on the back of key Aussie lifestyle trends
• ASX tech shares are leading the market’s gains on Thursday

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Affirm Holdings, Inc., and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Evolution Mining Ltd (ASX: EVN) share price has been smashed in 2021. Shares in the Aussie gold miner fell 6.4% on Tuesday and are now down 36.6% year to date.

Yesterday’s slump has seen Evolution hit a new 52-week low. The company now boasts a $6.1 billion market capitalisation, but things have been tough for shareholders.

So, what’s driving the Aussie miner’s valuation lower right now?

Why the Evolution Mining share price is slumping to a 52-week low

There has been no price-sensitive news from the Aussie miner since it announced the completion of its share purchase plan on 26 August.

However, as an ASX resources share, underlying commodity prices can often tell a story.

Evolution is targeting 700,000 to 760,000 ounces of gold production in FY2022 after recording a $354.3 million underlying profit last financial year. Naturally, global gold prices will have a big part to play in the group’s revenues in FY2022.

Right now, things aren’t looking so good. Gold prices slid more than 1% overnight to a near 6-month low as US yields climbed higher.

Gold is historically seen as a safe-haven asset and a good hedge against inflation. Hiking interest rates is one of the tools used by central banks to curb spending and reduce inflation. That means fears of higher interest rates usually spell bad news for gold prices.

It has also spelled bad news for the Evolution Mining share price. Shares in the Aussie gold miner remain under pressure as investors watch monetary policy and yields around the world.

An earlier than expected rate hike from the US Federal Open Market Committee (FOMC) could see Evolution’s valuation sink even lower. However, nothing is certain in the markets, especially in the current climate.

That means investors will be keeping a close eye on the Evolution Mining share price given its current levels.

The post Why the Evolution Mining (ASX:EVN) share price is slumping to a 52-week low appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
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• Evolution Mining (ASX:EVN) share price hits 52-week low
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Ken Hall 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 Bruce Jackson.

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The Westpac Banking Corp (ASX: WBC) share price will be carefully watched in the coming weeks, as analysts speculate on its immediate fortunes.

The bank’s stock price has plunged 1.9% in the past month, although there were no direct announcements from it that would have had a material impact. 

There was news that the competition watchdog in Papua New Guinea blocked Westpac’s $420 million sale of its Fijian and PNG business to Kina Securities Ltd (ASX: KSL).

But that shouldn’t have a massive impact on a business with a total market capitalisation of $93 billion.

Buyback or dividend boost both on the cards

So is this a buying opportunity for the stock?

Redpoint Investment Management senior portfolio manager Max Cappetta told The Motley Fool that Westpac is one of his top picks among the big banks.

“Coming up in the dividend calendar is now the full-year results to 30 September for 3 out of Australia’s 4 major banks.”

While Cappetta forecast both Westpac and National Australia Bank Ltd. (ASX: NAB) to have a superior rebound in profitability, the former could have some cherry on top.

“We also see the potential for capital management by either a buyback or even an increased dividend from Westpac,” he said in Ask A Fund Manager.

Citibank analysts agree, this week slapping on a buy rating for Westpac shares with a price target of $30.

That’s a handy 18.5% premium on Tuesday’s closing price of $25.31.

“Citi is forecasting fully franked dividends of $1.16 per share in FY2021 and then $1.30 per share in FY2022,” reported The Motley Fool’s James Mickleboro.

“This represents yields of 4.6% and 5.1%, respectively, over the next couple of years.”

The downside for Westpac

The risk for Westpac, and indeed any ASX bank share at the moment, is the prospect of a slowing housing market.

This could happen naturally because Australians have taken on so much debt that they can’t absorb anymore, which was a concern raised by Morgan Stanley last week.

The alternative is that the property market could deflate artificially from tighter lending regulations, as flagged by Treasurer Josh Frydenberg on Tuesday.

But the good news is that while Morgan Stanley is rating the other 3 majors sell or neutral, it still labels Westpac shares as “overweight” with a $29.20 price target.

The post Why these experts say the Westpac (ASX:WBC) share price could be on the way up appeared first on The Motley Fool Australia.

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• 2 buy-rated ASX dividend shares with generous yields
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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 Bruce Jackson.

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Are you on the lookout for growth shares to buy in October? Then you may want to look at the ones listed below.

Here’s why analysts rate these two ASX growth shares highly:

Breville Group Ltd (ASX: BRG)

Breville could be a good growth share for investors to consider buying. It is a leading appliance manufacturer with a collection of popular brands including Kambrook, Sage, and Breville.

It has been tipped to continue its solid growth over the coming years thanks to its international expansion and strong demand from consumers. The latter is being driven partly by favourable trends such as working from home, which has led to a surge in coffee machine sales.

The team at Morgans are positive on the company’s outlook. The broker currently has an add rating and $34.00 price target on its shares. This compares to the current Breville share price of $28.74.

Life360 Inc (ASX: 360)

Life360 could be another top growth share to look at. It operates in the digital consumer subscription services market, with a focus on products and services for digitally native families. Its hugely popular Life360 app now has 32 million users globally and offers features that range from communications to driving safety and location sharing.

The company has been growing its recurring revenues at a rapid rate in recent years and is now looking to accelerate this growth through cross-selling opportunities. This includes expanding into the wearables market via the acquisition of Jiobit.

Bell Potter is very positive on the company’s future and sees plenty of opportunities to monetise its massive user base. As a result, the broker recently retained its buy rating and lifted its price target to $10.75. This compares to the latest Life360 share price of $9.03.

The post Here are 2 strong ASX growth shares analysts rate as buys 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. owns shares of and has recommended Life360, Inc. 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 Bruce Jackson.

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The Boral Limited (ASX: BLD) share price is having a reasonably strong year so far. Shares in the building materials supplier are up 23.7% in 2021 and outperforming the S&P/ASX 200 Index (ASX: XJO).

However, it hasn’t all been going shareholders’ way this year. In fact, the Boral share price is down 16.2% in the three months since 28 June, closing on Tuesday at $6.15 apiece. That means that the ASX share has actually underperformed the broad market index which has edged just 0.4% lower in the same period.

So, why is the building supplies company underperforming right now?

What’s with the Boral share price lately?

June and July was an interesting period for the Boral share price. The company was under siege at the time with Seven Group Holdings Ltd (ASX: SVW) ramping up its takeover efforts.

Boral recommended shareholders reject Seven’s updated offer for up to 34.5% of the company at $7.40 per share, saying that undervalued the company by 40%.

Naturally, the Boral share price hovered around that proposed takeover mark of $7.40 per share for quite some time. Then, in late July, it started sliding as Seven took control of the company.

Seven’s move on Boral coincided with shares in the building supplies group falling lower in late July and most of August. The Aussie conglomerate accumulated 69.6% of the company’s voting rights by 30 July and the Boral share price was under pressure.

Some saw the move as deception, others a shrewd business decision. However, while the ASX 200 enjoyed a reasonably positive earnings season, the same can’t be said for Boral.

How did Boral perform in FY21?

The company reported its full-year results on August 24 including the below:

• Revenue from continuing operations down 6% on the prior corresponding period (pcp) to $2.92 billion
• Underlying earnings per share (EPS) from total operations up 42% on pcp to 20.6 cents
• Return on funds employed (ROFE) down 50 basis points (bps) from FY2020 to 8.3%
• No final dividend declared

The “challenging market conditions” saw the Boral share price slump 8% in two days either side of the result.

That, combined with a steadying in the broad market index, has seen the building supplies company underperform the broad market index in the last three months.

The post Why the Boral (ASX:BLD) share price has underperformed the ASX 200 in the last 3 months appeared first on The Motley Fool Australia.

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• These were the worst performing ASX 200 shares in August

Motley Fool contributor Ken Hall 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 Bruce Jackson.

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If you’re looking to boost your income with some dividend shares, then you might want to consider the ones listed below.

Both dividend shares are expected to provide investors with attractive yields in the near term. Here’s what you need to know about them:

Rural Funds Group (ASX: RFF)

The first ASX dividend share to look at is Rural Funds. It is an Australian property company that owns a diversified portfolio of agricultural assets which are leased predominantly to corporate agricultural operators.

Management is targeting distribution growth of 4% per annum and aims to achieve by owning and improving farms that are leased to good counterparties.

It has been a case of so far so good for this strategy. In FY 2021, the company was on form again and grew its distribution by 4% to 11.28 cents per share. It has also provided guidance for a 4% increase in its distribution to 11.73 cents per share in FY 2022.

Based on the current Rural Funds share price of $2.75, this will mean a yield of 4.3%. Another positive is that this distribution is paid in quarterly instalments.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share with an attractive yield is Telstra. In FY 2021, the telco giant paid shareholders a fully franked dividend of 16 cents per share. Based on the current Telstra share price of $3.93, this represents a 4% dividend yield.

The good news is that Telstra is expecting to return to growth in FY 2022 and another 16 cents per share dividend is forecast.

But even better is the company’s longer term outlook. Telstra recently released its T25 plan which reveals bold growth plans through to FY 2025. This has led to many analysts believing that Telstra could soon increase its dividend for the first time in a decade. This would make its already attractive yield even more attractive for income investors.

The post 2 ASX dividend shares with attractive 4%+ yields 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 owns shares of and has recommended RURALFUNDS STAPLED and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Analysts are speculating over which direction National Australia Bank Ltd (ASX: NAB) share price could be heading in the coming period.

The major bank’s stocks have gone sideways in the past month, down 0.18%.

But this week NAB reported its intentions to hire more staff to grow its private banking and wealth management businesses.

Three of the big banks, including NAB, will report their results in a few weeks.

Does that mean now is a buying opportunity for NAB shares?

Is a dividend boost coming for NAB shareholders?

Redpoint Investment Management senior portfolio manager Max Cappetta told The Motley Fool that he certainly favoured it over 2 other major banks.

“We favour Westpac Banking Corp (ASX: WBC) and the NAB,” he said in the latest in Ask A Fund Manager.

“Our expectations are showing that their profitability looks to be rebounding more strongly.”

Goldman Sachs is forecasting that NAB will pay out a total dividend of 125 cents per share for the 2021 financial year.

As it has already given out 60 cents as an interim dividend, this would mean an 8.3% lift for the final dividend to bring it to 65 cents.

“When calculating against the current share price, NAB is trailing on a forecast fully-franked dividend yield of 4.4%,” reported The Motley Fool’s Aaron Teboneras.

“Before the onset of COVID-19, the bank had been paying shareholders fully franked dividends of 99 cents on a bi-annual basis.”

As for the price itself, Goldman Sachs has rated NAB shares a ‘buy’ with a price target of $30.62. That’s a nice 11.4% premium to Tuesday’s closing price.

Possible dangers for NAB shares

All bank ASX shares are currently facing the danger of a deflating housing market.

Property prices have ramped up the past 18 months on the back of historic low interest rates, and there are worries the market has overheated.

Morgan Stanley last week raised concerns about the high levels of household debt in Australia.

And this week treasurer Josh Frydenberg agreed, flagging that tighter lending regulations could come in to curb massive home loans.

The post Why experts think the NAB (ASX:NAB) share price is on the way up appeared first on The Motley Fool Australia.

More reading

• Why we favour 2 of 4 big bank ASX shares: fund manager
• The NAB (ASX:NAB) share price rises amid hiring frenzy in private banking
• These experts believe the future is bright for the Bank of Queensland (ASX:BOQ) share price
• The Westpac (ASX:WBC) share price is down 3% so far in September. What’s next?
• 2 buy-rated ASX dividend shares with generous yields

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 Bruce Jackson.

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