The Rio Tinto Limited (ASX: RIO) share price has gone from bad to ugly, hitting an intraday low of $99.02 on Friday.

At the time of writing, shares in the iron ore major are down 3.1% to $100.46.

Iron ore bulls might want to look away

Iron ore prices have been under immense downward pressure since late July after China announced its plans to cap the country’s steel output to no more than 2020 figures.

The price of the black rock has since cratered from record highs of about US$230 per tonne in May to a 14-month low of US$107.2 per tonne on Thursday, according to Fastmarkets.

This move is broadly consistent with the Rio Tinto share price tumbling to 11-month lows on Friday.

According to Rio Tinto’s half-year results, the company’s average realised price for iron ore was US$168.4 per tonne.

With current spot prices well below what Rio Tinto was receiving, this could only mean bad news for its margins and near-term outlook.

Why did iron ore halve in less than 4 months?

A number of factors relating to China have chipped away at the value of iron ore.

More recently, S&P Global reported that China was “on track to reduce its 2021 crude steel output below the 2020 level for the first time since 2016”.

According to the report, “China’s August crude steel output dropped 13% on the year and fell 4.1% on the month, to 80.24 million mt, the lowest level seen since March 2020.”.

The drivers behind the sudden slowdown in crude steel output include government mandates on production, energy consumption controls and weak demand from the property sector.

S&P Global warned that tightening credit and a slowdown in China’s property sector could spark more weakness for near-term demand.

It said: ” … Chinese property developer Evergrande Group on Sept. 14 flagged a possible default on loans due to a slowdown in property sales.

“The Shenzhen-based company has incurred liabilities of roughly $305 billion. A default on credit could likely spark a domino effect in China’s property sector, and result in lower steel and raw materials prices in Q4,” according to S&P Global Platts Analytics.

Rio Tinto share price falls on high volume

The Rio Tinto share price has managed to bounce off its intraday low of $99.02 today and is holding above $100 at the time of writing.

Approximately 2.96 million Rio Tinto shares have traded hands so far today, compared to its current 10-day average volume of 1.51 million shares.

The post Rio Tinto (ASX:RIO) share price breaks below $100 for the first time since November 2020 appeared first on The Motley Fool Australia.

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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. 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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There is an ASX share that’s more than doubled its price this year, but some experts reckon it’s perfectly positioned to grow even further in the post-COVID world.

Wilson Asset Management portfolio managers Matthew Haupt, Catriona Burns and Oscar Oberg said in a memo to clients that 2 of their funds currently held Maas Group Holdings Ltd (ASX: MGH) shares.

“The Australian Securities Exchange (ASX) has a rich history of founder-led companies delivering stand-out returns for investors,” they wrote.

“MAAS Group is one such company that demonstrates the key attributes of a successful founder-led company which we believe has a significant runway for value creation over the medium term.”

After floating on the ASX in December, MAAS shares started the year at $2.65. That’s risen more than 103%, to trade at $5.43 on Friday morning.

What is MAAS Group?

Former South Sydney NRL player Wes Maas had no vocational qualifications when his rugby league career ended prematurely due to a serious injury in 2002.

So he spent his entire savings to buy a bobcat, which he hired out to construction businesses. 

The rest is history.

“The group has expanded significantly since, culminating in the successful initial public offering [IPO] of the business in December 2020 at $2 per share at an implied valuation of over $600 million,” said the Wilson portfolio managers.

“Wes retained 69% of the shares in the company while employees were also granted significant equity.”

Haupt, Burns and Oberg love that management and staff own so much of the business.

“‘Skin in the game’ ensures strong alignment with shareholders, whilst underpinning the entrepreneurial spirit of the organisation.”

Far from just a single bobcat for hire, the mammoth business now provides “vertically integrated” construction materials and equipment services, as well as undertaking property development.

How can MAAS shares grow further?

Despite the significant upwards run in stock price, the Wilson fund managers reckon MAAS plays in segments that are set to take off after this COVID-19 Delta strain is put behind us.

“With strategically located quarry assets, significant latent capacity and a substantial pipeline of infrastructure spend expected over the coming 3 to 5 years, we believe the organic growth outlook for the business is compelling.”

There is further potential with acquisitions on top of organic growth.

“This week, MAAS Group announced it had signed an agreement for the acquisition of Earth Commodities hard rock quarry operations in central Queensland, enabling the company to realise synergies within its central Queensland construction materials business and enhance its growth opportunities in the year ahead.”

The potential of the property development arm, the Wilson experts think, is not well understood by investors.

“The property development business remains an underappreciated aspect of MAAS Group, providing exposure to high growth corridors across both residential and commercial real estate,” they wrote.

“And we see potential for separate listed vehicles in the future.”

The post This ASX share doubled this year, but plenty more to come: experts 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 Bruce Jackson.

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The AMA Group Ltd (ASX: AMA) share price is on the move in morning trade. This comes after the automotive parts and smash repair company invited eligible investors to its retail entitlement offer.

At the time of writing, AMA shares are travelling 5.21% higher to 51 cents.

Details of the retail component

Last week, AMA announced its intentions to raise approximately $150 million through a $100 million fully-underwritten equity raising. This consists of both a completed $53 million institutional offer and the current $43 million retail entitlement offer. Another $50 million comprises of the convertible notes offer, which has since been successfully completed and is expected to settle on 21 September.

However, the company revealed the details of the second part of its accelerated non-renounceable pro rata entitlement offer.

The retail entitlement offer allows shareholders to subscribe for 1 new AMA share for every 2.8 existing AMA shares held. The issue price is set at 37.5 cents per share which is the same offered in the institutional entitlement offer. This represents a 10.7% discount to the closing price of 42 cents per share when the offer was announced on 3 September. It’s expected that around 125 million new shares will be created.

The net proceeds of the entitlement offer and the convertible notes offer will be used to repay some debt facilities. In addition, a portion of the monies will be set aside for working capital, liquidity, and supporting growth initiatives.

The retail offer opens today and closes on 30 September 2021. Settlement is scheduled to occur on 6 October, with allotment on the following day.

About the AMA share price

It’s been a rollercoaster 12 months for AMA Group shares, registering a 25% loss for the period. When looking at year-to-date, its shares are in the red further by almost 35%.

AMA Group has a market capitalisation of about $380.7 million, with over 746 million shares on its books.

The post Why the AMA (ASX:AMA) share price is lifting 5% on Friday 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 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 Aristocrat Leisure Limited (ASX: ALL) share price is trading lower on Friday.

In morning trade, the gaming technology company’s shares are down almost 1% to $46.86.

While today’s decline is disappointing, it isn’t enough to take the shine off its 2021 performance.

Since the start of the year, the Aristocrat Leisure share price is up ~50%.

Where next for the Aristocrat Leisure share price?

This morning the team at Goldman Sachs gave their verdict on the Aristocrat Leisure share price.

This follows the company’s virtual investor round table event ahead of the start of its new financial year next month.

However, while the broker has retained its buy rating, its price target of $48.60 implies only modest gains ahead.

What did the broker say?

Goldman’s analysts appear to have come away from the event feeling confident in the company’s growth outlook.

In respect to its poker machines business, the broker commented: “Management highlighted the strength of its land based business where it continues to take share in its core markets, as evident in some recent surveys and noted ~3x floor avg across premium games.”

It was a similar story for the company’s Digital segment, which continues to perform strongly.

Goldman said: “Generally, RAID continues to scale albeit not at the same rate as a year ago, whilst Evermerge remains attractive and Mech Arena just launched globally in August and is now scaling. They remain focused on not just top line growth but profitable growth, noting that the group continues to grow above industry levels off organic drivers over the past two years rather than boost from acquisitions.”

Aristocrat Leisure also spoke about potential M&A activity, noting the strength of its balance sheet.

Its analysts explained: “Balance sheet strength remains, and management continues to watch M&A closely as an option to accelerate growth like they have in the past, though highlighted their discipline on this front including criteria that it needs to be accretive from day 1 and fits in and allows the group to scale the acquisition.”

All in all, Goldman appears happy with what it heard and continues to forecast strong earnings growth in the coming years. For example, the broker has pencilled in earnings per share of $1.30 in FY 2021 and then $1.69 and $1.91 in FY 2022 and FY 2023, respectively.

The post Broker tips Aristocrat Leisure (ASX:ALL) share price to keep rising 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 Afterpay Ltd (ASX: APT) share price is charging higher in early trade today, up 2.69% to $126.86.

The S&P/ASX 200 Index (ASX: XJO) is headed the other way, down 0.96%.

A bit over 3 weeks have now passed since the ASX buy now, pay later (BNPL) giant reported its full-year results for the 2021 financial year (FY21). So, it’s time to see how the Afterpay share price has been performing since then.

We take a look at that, and a brief review of those FY21 results, below.

What results did the ASX 200 BNPL company report for FY21?

The Afterpay share price was on watch on 25 August, the day the company released its FY21 results.

Some core metrics included a 90% increase in underlying sales to $21.1 billion. Total income also leapt 78%, reaching $924.7 million for the year ending 30 June.

Afterpay also grew its customer numbers to 16.2 million, up 63% year-on-year. That was helped by a 77% boost in its active merchant numbers, which hit 98,200 by the end of FY21.

Despite that strong growth, earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $38.7 million were down 13% from FY20. The company’s net transaction loss also increased 210% year-on-year to $132.6 million.

Commenting on the growth outlook for the BNPL sector, Afterpay’s chair Elana Rubin said:

Global research continues to indicate that credit cards and credit-based products are in decline, while BNPL continues to expand as a preferred way to pay. Millennials and Gen Z are less likely than their parents to use a credit card, and more likely to engage with organisations and brands that they trust.

This looks likely to be the last full-year financial results we’ll get to analyse Afterpay’s share price.

The company also announced its $39 billion acquisition by Square Inc (NYSE: SQ) is on track for completion in the first quarter of 2022.

How has the Afterpay share price moved since reporting results?

The Afterpay share price fell 1.2% on the day it reported results.

While gaining in intraday trade today, Afterpay shares are down 6% since market close on 24 August.

By comparison, the ASX 200 is down 1.5% over that same period.

The post How has the Afterpay (ASX:APT) share price performed since reporting results? appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO 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 Australasian Gold Ltd (ASX: A8G) share price is soaring today following the release of a project update.

The company announced it has officially struck gold at its May Queen Gold Project. Meanwhile, a date for the beginning of exploration at its Mt Peak Lithium Project has been set.

Right now, the Australasian Gold share price is 43 cents, 65.38% higher than its previous close. Shortly after open, the share price rocketed to a new high of 49 cents but has since pulled back a little.

Let’s take a closer look at today’s news from the gold exploration company.

Today’s news from Australasian Gold

The Australasian Gold share price is surging higher this morning following news about 2 of its projects.

Perhaps the most exciting news is the results of the company’s May Queen Project maiden drilling program.

The drilling program has found evidence of a potential gold-copper porphyry system, with assay results including 6 metres at 1.99 grams of gold per tonne from 35 metres and 1 metre at 9.39 grams of gold per tonne from 68 metres.

Additionally, surface rock chip sampling found up to 2.66 grams of gold per tonne and 3.43% copper at the project.

Australasian Gold will now complete more geophysical surveys to define potential silica enriched areas with possible disseminated sulphides. The survey’s results will help a follow-up reverse circulation drilling program that’s set to begin in the coming months.

The company also announced that it plans to begin exploration at its Mt Peak Lithium Project on Sunday.

Four geologists will begin conducting surface and rock chip sampling after satellite image investigations highlighted areas with pegmatite outcrops within the project.

Australasian Gold share price snapshot

Today’s gains have added to the strong recent performance of the Australasian Gold share price.

Right now, the shares are trading 115% above their Initial Public Offering (IPO) price in May 2021.

The post Australasian Gold (ASX:A8G) share price explodes 65% on project updates 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 Bruce Jackson.

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The Hazer Group Ltd (ASX: HZR) share price has slipped in early trade.

Shares in the hydrogen and graphite company have tumbled recently following a capital raise.

Let’s take a closer look at the Hazer share price.

What’s been dragging the Hazer share price?

Shares in Hazer have been weighed down by the company’s $7 million capital raising.

Earlier today, the company released documentation inviting eligible shareholders to participate in the Share Purchase Plan (SPP).

Eligible retail shareholders will be able to subscribe for up to A$30,000 worth of fully paid ordinary shares.

These new shares in Hazer will be available at a subscription price of A$0.92 per share.

The SPP will open on 17 September and close on 15 October and be capped at a maximum of $7 million.

Hazer announced early this week that it had completed its placement with institutional and sophisticated investors, with 7.6 million new ordinary shares to be issued.

According to the company, funds raised from both capital raises will be used to expand business development activities for the Hazer Commercial Demonstration Project (CDP).

Furthermore, Hazer also plans on funding continued research and development programs to enhance its graphite advanced carbon material.

More on Hazer

Hazer is a technology development company that is focused on commercialising a low-emission hydrogen and graphite production process.

The Hazer Process enables the effective conversion of natural gas and similar methane feedstocks, into hydrogen and high quality graphite, using iron ore as a process catalyst.

The company recently provided an update on its CDP being constructed at Water Corporation’s Woodman Point Water Recovery Facility.

Hazer advised shareholders that COVID-19 restrictions have caused some delays with the fabrication.

As a result, the project is now estimated to be in commission in the first quarter of FY22. Hazer had previously targeted December 2021 as the commission date.

Snapshot of the Hazer share price

Despite slipping in the past week, shares in Hazer have performed strongly for the year.

Since the start of 2021, the Hazer share price is trading more than 17% higher.

At the time of writing, shares in the mineral technology company are trading more than 2% lower for the day at around 94 cents.

The post Why the Hazer (ASX:HZR) share price is slipping on Friday appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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 Fortescue Metals Group Limited (ASX: FMG) share price is cratering amid plunging iron ore prices and weakening Chinese demand.

Shares in the iron ore giant continue to fall on Friday, down 8.29% at $15.82 in early trading.

Fortescue share price hits fresh 12-month lows

Iron ore prices started the week at US$123.8 per tonne according to Fastmarkets.

By Thursday night, Fastmarkets reported that sustained demand weakness drove iron ore prices to just US$107.2 per tonne.

This means that prices have plunged more than 50% since May record highs of US$230 per tonne.

The last time iron ore traded near US$100 was around early August last year, broadly consistent with the Fortescue share price making fresh 12-month lows on Friday.

What’s driving iron ore prices lower?

There’s been a major slowdown in Chinese demand due to government restrictions on steel output in addition to broader weakness in industrial and construction activity.

S&P Global reported that China’s August crude steel output fell 13% year-on-year and dropped 4.1% month-on-month to 80.24 million metric tonnes. Figures have not dropped this low since March 2020.

The report warned that China’s crude steel output was likely to drop further in September and October, as major steelmaking provinces have been forced to widen steel output cuts to meet energy consumption guidelines.

In addition, it warned that “China’s steel prices are unlikely to gain much momentum from output cuts in Q4, mainly because domestic demand has also softened due to a slowing property sector, according to sources”.

Fortescue was able to leverage sky-high iron ore prices at the beginning of the year, but that is now unravelling as demand from China’s key property and infrastructure wanes.

The Fortescue share price is down 36% year-to-date and has given back all its hard-earned gains from the past 12 months.

The post Why the Fortescue (ASX:FMG) share price is down 8% today appeared first on The Motley Fool Australia.

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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. 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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It’s been a big month for the Pan Asia Metals Ltd (ASX: PAM) share price.

The company has released plenty of news over the last 30 days, including updates from its Reung Kiet Lithium Prospect and news of an $8 million capital raise.

Right now, the Pan Asia share price is 47 cents, 176% higher than it was this time last month. It is also up 3.3% on the day.

Let’s take a closer look at what’s been driving the Pan Asia share price lately.

Quick refresher

Pan Asia is a minerals explorer focused on tungsten and lithium projects in Thailand.

The Pan Asia share price’s recent surge began when the company announced it had lodged prospecting licence applications for 5 prospects at its Kata Thong Lithium Project on August 31.

Less than a week later, the company announced news of an $8 million capital raise.

Then, Pan Asia released exciting drill results to the market. As The Motley Fool Australia reported, the company said it had found thick pegmatites, indicating lithium mineralisation, at its Reung Kiet Lithium Prospect.  

Between announcing the news of its Kata Thong Lithium Project and the news from its Reung Kiet Lithium Prospect, the Pan Asia share price gained a massive 353%.

The latest from Pan Asia

The latest news to drive the Pan Asia share price was released on Tuesday.

Then, the company released its share purchase plan’s documentation and a drilling update from its Reung Kiet Lithium Prospect.

The drilling update noted Pan Asia received positive assay results from 7 drill holes, finding pegmatite dyke-vein swarms containing lithium mineralisation.

The swarm is up to 100 metres wide, containing pegmatite veins and dykes up to 18 metres wide. The mineralisation is around 1 kilometre long and remains open to the north, south, and at depth.

The assay results also found tin, tantalum rubidium, cesium, and potassium mineralisation. These could become valuable by-products from the project.

A scoping study for Pan Asia’s Reung Kiet Prospect is set to be released in the first quarter of 2022.

Additionally, Pan Asia released more details of its $8 million capital raise.

The company has already completed a $6 million private placement and plans to begin a $2 million share purchase plan.

Under the plan, eligible shareholders can get their hands on additional Pan Asia shares for 40 cents apiece.

The raised capital will go towards drilling at the Reung Kiet Lithium Project and exploration applications at the Kata Thong Project. Some of the funds will go to the company’s battery and critical metal project generation program.

Investors involved in the share purchase plan must purchase between $2,500 and $30,000 worth of shares. Shares will only be offered in parcels valued at $2,500, $5,000, $7,500, $10,000, $15,000, $20,000, or $30,000.

Pan Asia share price snapshot

Its strong month’s performance has boosted the already well-performing Pan Asia share price higher.

Right now, it is 235% higher than it was at the start of 2021. It has also gained 135% since this time last year.

The post Why the Pan Asia (ASX:PAM) share price has gained 176% in a month appeared first on The Motley Fool Australia.

More reading

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• Up 265% in 5 days, why the Pan Asia Metals (ASX:PAM) share price is rocketing 23% today
• Pan Asia Metals (ASX:PAM) share price soars another 53% following results update
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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 Bruce Jackson.

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BHP Group Ltd (ASX: BHP) shares have struggled in recent months. The Aussie iron ore giant has seen its value drop 20.8% on the ASX in the past month to a $199.7 billion market capitalisation.

Investors might be alarmed to see such a huge drop in value from an ASX large cap. The good news is, however, there’s more to the recent share price declines than meets the eye.

Why BHP shares are down 20% in the past month

It has been a busy time for BHP recently. There was the group’s August full-year earnings result followed up by the merger announcement with Woodside Petroleum Limited (ASX: WPL).

Woodside will merge with BHP’s petroleum division to create a global top 10 independent energy company by production. The news was big for both Woodside and BHP, but it doesn’t necessarily explain the recent decline in BHP shares.

Rio Tinto Limited (ASX: RIO) shares are down 10.9% in the past month while Fortescue Metals Group Limited (ASX: FMG) shares have slumped 26.3%. Tumbling iron ore prices amid changing market conditions in China has certainly hurt the large Aussie miners.

There is also the recent changes announced in the August results regarding organisational restructure. BHP is planning to drop its dual listing in the UK on the London Stock Exchange as part of the changes.

The subsequent sell-down from UK funds on the back of the news has therefore made the BHP UK price plummet. That price drop may also have had a knock-on effect for the Aussie listing as investors recalibrate amid the UK valuation changes.

That means that while the BHP share price has tumbled in the past month, it may not be as simple as Rio Tinto being “the better pick”. It’s a busy period for the Aussie iron ore miner right now and that means identifying what’s driving valuation changes is difficult for even the best investors.

The post BHP (ASX:BHP) shares are down 20% in a month. Here’s why it’s not all bad news for investors appeared first on The Motley Fool Australia.

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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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