The Zoom2u Technologies Ltd (ASX: Z2U) share price has had a stellar start to its listing tenure.  

Since debuting on the market late last week, shares in the parcel delivery platform have surged an astronomical 267.5% higher.

Let’s take a look at why investors are jumping to get their hands on shares in Zoom2u.

What’s fuelling demand for the Zoom2u share price?

Shares in Zoom2u received a boost yesterday after releasing an exciting investor update.

The delivery service company announced the signing of its first enterprise customer for its Locate2u platform.

Zoom2u revealed it will provide Amart Furniture access to its software as a service (SaaS) platform for a 24-month term.

In addition, the company also announced an agreement with Bing Lee for access to its Zoom2u platform.

The announcement saw great investor interest, pushing the Zoom2u share price 13% higher for the day.

As a result, shares in the parcel delivery platform have zoomed more than 267% higher since listing and are now changing hands at 73.5 cents apiece.

More on Zoom2u

Zoom2u listed on the exchange via an oversubscribed IPO last week, raising $8 million at 20 cents per share.

The delivery service company has two key operating businesses.

Zoom2u is the company’s largest segment platform that connects customers with local drivers. Locate2u is its second business that offers customers a SaaS product. 

This allows users to manage bookings, optimise routes, and track and share their live locations with customers.

In its prospectus, the company’s chairman addressed the strong growth being witnessed in e‑commerce and the increased outsourcing of delivery services. As a result, Zoom2u has valued the Australian delivery services market at $5.6 billion.

In another possible boost to the Zoom2u share price, the company highlighted the global demand for delivery management software and automation of delivery management.

The company’s Zoom2u platform commenced operations in 2014. It has grown gross merchandise value (GMV) from $0.4 million in FY15 and forecasts $11.1 million for FY21.

It currently has a customer base of nearly 70,000 individuals, SMEs, and enterprise customers who are connected to more than 8,600 drivers.

Locate2u was launched in late 2020 and is still in its early stage of market development.

The company noted that part of the funds raised from the IPO will be used to scale up sales and marketing efforts for both Zoom2u and Locate2u.

The post The Zoom2u (ASX:Z2U) share price has soared 267% in a week appeared first on The Motley Fool Australia.

More reading

• Why the Zoom2u (ASX:Z2U) share price is rocketing 28% higher today
• Zoom2u (ASX:Z2U) share price doubles on initial public offering

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 Webjet Limited (ASX: WEB) share price has been range bound since November last year when Pfizer released its initial COVID-19 vaccine trial results.

Webjet shares have struggled to hold above $6 but managed to find plenty of buying support around the mid-$4 level.

Encouragingly, Webjet shares have pushed 5% higher in September and are testing the upper bound of the range.

In an article featured on Livewire, Nathan Hughes from Perpetual Limited (ASX: PPT) and Mike Murray from Australian Ethical Investment Limited (ASX: AEF) were asked about their thoughts on the Webjet share price.

What do experts think about the Webjet share price?

Murray was cautiously optimistic about Webjet, slating it as a “reopening play” but concerned about how much of that was already priced into today’s share price.

“I just wonder how much of the heavy lifting has already been done. There are probably twice as many shares on issue now than there were a couple of years ago.”

“The enterprise value would have recovered back to really pre-COVID levels. And so I don’t really want to pay the current price for it, but it’s an interesting business,” he said.

Perhaps a lower Webjet share price might have earned a more positive view from Murray, but he ultimately said it was a “hold”.

Hughes said that “there’s no doubt they’ll [Webjet] enjoy a really strong recovery” but was far more critical about the company’s valuation and balance sheet.

“But I think those salient points Mike made around the enterprise value and just how much of the recovery is baked into today’s share price. There are a lot more shares on issue and there’s also some convertible debt on the balance sheet, as well, so that gives me some pause,” he said.

Hughes also pointed at Webjet’s business model as a potential red flag in the long-term.

“.. a trend we’ve seen in a lot of industries, is a lot of businesses are going more direct to consumer and controlling their own distribution. And so, from that perspective, I just wonder about the long-term sustainability of Webjet’s B2B model,” he added.

The post To buy, hold or sell? Experts weigh in on the Webjet (ASX:WEB) share price appeared first on The Motley Fool Australia.

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• The Webjet (ASX:WEB) share price is nearing its 52-week high. Is now the time to buy?
• Here’s why the Webjet (ASX:WEB) share price is up 50% this last year
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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 owns shares of and has recommended Webjet Ltd. 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 Telstra Corporation Ltd (ASX: TLS) share price will be on watch today.

This is after a number of analysts responded to its T25 strategy.

What was the response?

One of those was Goldman Sachs, which appeared to be very pleased with the telco giant’s T25 strategy.

According to a note released this morning, the key strategic and financial updates given with the strategy were consistent with the broker’s prior expectations.

It commented: “FY25 targets for strong earnings growth were provided, implying a high degree of confidence in the outlook, given expectations for mid-single digit EBITDA growth p.a. and a similar quantum of mobile service revenue growth.”

And while the broker notes that Telstra’s earnings per share targets were slightly lower than it was forecasting, it wasn’t enough to impact its bullish stance.

What about its dividend plans?

Goldman was also pleased with the company’s new dividend policy.

It explained: “Telstra also revised its dividend policy back towards 100% of EPS, as it prioritizes growing franked dividends over time, while using the c.$600mn p.a. (c.5¢ps) of additional FCF to invest for growth or return to shareholders. On-market buybacks & un-franked dividends were highlighted, but we expect buybacks to be prioritized given the focus on growing franked dividends.”

In light of this, the broker is now forecasting 16 cents per share fully franked dividends through to FY 2023. After which, it expects a dividend of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Though, it sees upside potential to the latter dividends.

With the Telstra share price currently fetching $3.95, this will mean yields of 4%, 4.6%, and then 4.8%, respectively.

Is the Telstra share price good value?

The team at Goldman Sachs believe the Telstra share price is in the buy zone at present.

The note reveals that the broker has a buy rating and $4.40 price target on the telco giant’s shares.

Based on the current Telstra share price, this implies potential upside of 11% over the next 12 months before dividends. And if you include them, the potential return stretches to 15.5%.

The post Is the Telstra (ASX:TLS) share price in the buy zone after its T25 update? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• The Telstra (ASX:TLS) share price has a new 52-week high. Here’s why
• These 3 ASX 200 shares are the most heavily traded so far this Thursday
• ASX 200 (ASX:XJO) midday update: Telstra unveils T25 strategy, Wesfarmers’ API offer
• Telstra (ASX:TLS) share price rises on T25, dividend growth goal

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 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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The Zip Co Ltd (ASX: Z1P) share price closed down 1.5% on Thursday, finishing the day at $6.65.

That came as the broader S&P/ASX 200 Index (ASX: XJO) ended in the green, up 0.6%.

It’s been just over 3 weeks now since the buy now, pay later (BNPL) company reported its full year results for the 2021 financial year (FY21).

With investors now having had plenty of time to digest those results, we take a look below at how the Zip share price has performed since reporting.

First, a quick recap of those results.

What results did the ASX 200 tech share report for FY21?

The Zip share price was on investor radars on 25 August, the day it released its FY21 results.

Some of the key results Zip reported include a 150% year-on-year leap in revenue, to $403.2 million.

The BNPL company saw its transaction volumes surge to $5.8 billion. That was up 179% from the $2.1 billion reported in FY20.

Cash gross profits also surged, up 147% year-on-year to $198 million. And the company’s active merchants more than doubled, up 109% to 51,300 merchants.

Zip has not historically paid a dividend and did not declare one for FY21.

Commenting on the continuing rise of BNPL methods among consumers, Zip CEO Larry Diamond said:

The trend and shift away from the unfriendly world of credit cards that was the genesis of the Australian business has proven to be a global phenomenon, and Zip continues to accelerate in all our key markets.

How has the Zip share price moved since reporting those results?

Despite its strong growth results, the Zip share price fell 2.6% on the day it reported.

Since market close on 24 August (the day before reporting) Zip’s shares are down 9.2%.

By comparison, the ASX 200 has fallen 0.6% over that same time.

The post How has the Zip (ASX:Z1P) share price performed since reporting results? appeared first on The Motley Fool Australia.

More reading

• 3 exciting ASX tech shares to buy this month
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• ASX 200 rises, Zip falls, Brambles sinks
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• Leading brokers name 3 ASX shares to sell today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. 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 wanting to invest in the small side of the Australian share market, then the two small caps listed below could be worth a closer look.

Here’s why these small caps are rated highly by analysts:

Infomedia Limited (ASX: IFM)

The first small cap share to look at is Infomedia. It is a leading global provider of software as a service solutions to the parts and service sector of the automotive industry.

In FY 2021, the company overcame tough trading conditions to deliver a solid full year result. It reported a 3% increase in revenue to $97.4 million and an 8% lift in net profit after tax to $20 million.

Looking ahead, management is expecting a much stronger performance in FY 2022. It has given revenue guidance of $117 million to $123 million for the year. The mid-point of this guidance range implies revenue growth of 23% year on year.

One broker that is very positive on Infomedia is Bell Potter. It currently has the company as its second favourite pick in the tech sector. The broker has a buy rating and $2.00 price target on its shares.

Over The Wire Holdings Ltd (ASX: OTW)

Over The Wire is a telecommunications, cloud, and IT solutions provider. It offers an integrated suite of products and services to business customers including data networks and internet, voice, data centre co-location, cloud and managed services.

The company has been growing strongly in recent years and this continued in FY 2021. For the 12 months ended 30 June, Over The Wire reported a 29% lift in revenue to $112.7 million and a 36% jump in EBITDA to $23.5 million. Pleasingly, its revenue is now almost entirely recurring in nature. In FY 2021, the company’s recurring revenue grew 38% to $103.2 million.

Looking ahead, management is confident that it will deliver organic recurring revenue growth of at least 15% in FY 2022.

The team at Ord Minnett are positive on the company. The broker currently has a buy rating and $5.06 price target on its shares.

The post 2 top small cap ASX shares analysts rate as buys appeared first on The Motley Fool Australia.

More reading

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• 2 small-cap ASX shares showing excellent growth

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 Infomedia and Over The Wire Holdings Ltd. The Motley Fool Australia has recommended Infomedia and Over The Wire Holdings Ltd. 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 looking for some dividend options for your portfolio in September? if you are, check out the two ASX shares listed below.

Here’s why these ASX dividend shares have been tipped to as buys this month:

Scentre Group (ASX: SCG)

The first ASX dividend share to look at is Scentre. It owns and operates the pre-eminent shopping centre portfolio in Australia and New Zealand with retail real estate assets under management valued at $50.1 billion and shopping centre ownership interests valued at $34.3 billion.

This comprises 42 Westfield shopping centres, which management notes have strong franchise value and the ability to attract the world’s leading retail brands.

While lockdowns are weighing on its near term performance, the company’s medium term outlook looks positive. Especially given its leverage to inflation and the very favourable inflation expectations in Australia. This should be a boost to its rental income in the coming years.

It is largely for this reason that Goldman Sachs has a buy rating and $3.32 price target on the company’s shares.

In addition, Goldman is forecasting a 14 cents per share dividend in FY 2021 and a 16 cents per share dividend in FY 2022. Based on the latest Scentre share price of $2.99, this equates to 4.7% and 5.4% yields, respectively.

Suncorp Group Ltd (ASX: SUN)

Another dividend share to look at is Suncorp. It offers insurance, banking, and wealth products and services through some of Australia and New Zealand’s most recognised financial brands. These include AAMI, Apia, Bingle, GIO, Shannons, Vero, and the eponymous Suncorp brand.

It was on form in FY 2021, reporting a 42.1% increase in cash earnings to $1,064 million. This was ahead of the market’s expectations. In addition, the company announced a final dividend of 40 cents per share, a special dividend of 8 cents per share, and a $250 million on-market share buyback.

One broker that was very pleased with the result was Goldman Sachs. In response, the broker has put a buy rating and $13.74 price target on Suncorp’s shares.

Goldman is also forecasting a 61 cents per share fully franked dividend in FY 2022. Based on the current Suncorp share price of $12.60, this will mean a 4.8% dividend yield.

The post 2 buy-rated ASX dividend shares for income investors 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 WiseTech Global Ltd (ASX: WTC) share price has been one of the best performers on the S&P/ASX 200 Index (ASX: XJO) in 2021.

Since the start of the year, the logistics solutions company’s shares have risen an incredible 66%.

Why is the WiseTech Global share price rocketing higher?

Investors have been bidding the WiseTech Global share price higher this year following a very impressive performance in FY 2021.

For the 12 months ended 30 June, the company reported an 18% increase in revenue to $507.5 million and a 63% jump in EBITDA to $206.7 million. The latter was well ahead of its EBITDA guidance of $165 million to $190 million.

Also giving the company’s shares a lift was its guidance for the year ahead. Management advised that it is expecting further strong growth in FY 2022 and has provided guidance for EBITDA growth of 26% to 38%.

Is too late to invest?

Unfortunately, one leading broker doesn’t see enough value in the WiseTech Global share price at present to recommend it as a buy.

According to a recent note out of Bell Potter, its analysts have put a hold rating and $47.50 price target on the company’s shares.

Based on the current WiseTech Global share price of $50.58, this implies potential downside of 6% over the next 12 months.

Bell Potter commented: “We have upgraded our FY22 and FY23 EBITDA forecasts by 23% and 26%. We now forecast FY22 EBITDA of $294.3m which is above the top end of the $260-285m guidance range while our FY22 revenue forecast of $622.8m is within the $600-635m guidance range. Note we forecast the EBITDA margin to increase from 40.7% in FY21 to 47.3% in FY22.”

“The net result is a 51% increase in our PT to $47.50 which is a modest premium to the share price [at the time] so we maintain our HOLD recommendation,” it added.

In light of this, investors may want to hold out for a better entry point before considering an investment.

The post Broker gives its verdict on the WiseTech Global (ASX:WTC) share price appeared first on The Motley Fool Australia.

More reading

• ASX 200 tech shares are dragging the market on Monday
• 5 things to watch on the ASX 200 on Friday
• How have ASX technology shares performed during the August 2021 earnings season?
• Why the WiseTech (ASX:WTC) share price is on watch today
• Here’s a look at how ASX WAAAX shares compare on growth

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 WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. 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 Wesfarmers Ltd (ASX: WES) share price increased yesterday after the business made a larger bid for Australian Pharmaceutical Industries Ltd (ASX: API).

How big was the Wesfarmers bid for API?

The new offer was a cash bid of $1.55 per share. This revised bid represents a 37% premium to API’s one-month volume weighted average price of $1.133 per share to 9 July 2021, which was before the initial offer by Wesfarmers.

This bid allows for the payment of fully franked dividends up to a maximum of 5 cents per API share, including any final dividend declared for FY21. The cash consideration of $1.55 will be reduced by the cash component of any dividends.

What is API going to do?

The API board has stated it intends to unanimously recommend the revised proposal assuming the agreement proceeds, Wesfarmers completes confirmatory due diligence, no better proposals are received and an independent expert concludes this higher offer is in the best interests of API shareholders.

API’s major shareholder Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) has agreed to vote its 19.3% shareholding in API in favour of Wesfarmers’ revised proposal. Soul Patts has also granted a call option about its API shares in favour of Wesfarmers.

Management commentary

The Wesfarmers managing director Rob Scott explained the thought process behind the offer and why this was part of its strategy of investing capital in areas where it can leverage its capabilities to create long-term value:

Wesfarmers supports the community pharmacy model, including the pharmacy ownership and location rules. If the proposal is successful, we see opportunities to invest to strengthen the competitive position of API and its community pharmacy partners by expanding ranges, improving supply chain capabilities and enhancing the online experience for customers. API would also provide the basis of a new healthcare division of Wesfarmers and a platform from which to invest and develop capabilities in the growth health, wellbeing and beauty sector.

The size of the bid included the earnings impacts from the extension of COVID-19 related restrictions beyond the end of July 2021.

Continued diversification plays by Wesfarmers

The Wesfarmers share price and profit may currently be predominately influenced by businesses like Bunnings, Kmart Group and Officeworks, but it is continuing to make diversification moves which open up new earnings avenues for the company.

Wesfarmers says that API will be a founding part of a healthcare division, which may suggest that more moves are being considered.

Another non-retail play that Wesfarmers is doing is lithium. It has a stake in the lithium project called Mt Holland, together with Sociedad Quimica y Minera de Chile.

Earlier this year, Wesfarmers said that the concentrator and refinery production capacity would be approximately 50,000 tonnes per annum of battery grade lithium hydroxide. There is also the potential for a second phase of the project to expand production capacity at Mt Holland and the Kwinana refinery.

The first production of lithium is expected in the second half of 2024. The capital cost for the development of the project is estimated at approximately $950 million.

Wesfarmers share price valuation

Using the earnings estimate on Commsec, the Wesfarmers share price is valued at 27x FY23’s estimated earnings.

The post The Wesfarmers (ASX:WES) share price rose after the API (ASX:API) bid appeared first on The Motley Fool Australia.

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• This year’s ASX 200 Santa Rally to get a whopping $84bn cash boost
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• API (ASX:API) share price rockets 16% as Wesfarmers boosts offer
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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. 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 Washington H. Soul Pattinson and Company Limited and Wesfarmers 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) was back on form and charged higher. The benchmark index rose 0.6% to 7,460.2 points.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open the day 14 points or 0.2% lower this morning. This follows a mixed night on Wall Street, which saw the Dow Jones fall 0.2%, the S&P 500 drop 0.15%, and the Nasdaq rise 0.1%.

Telstra shares rated as a buy

The Telstra Corporation Ltd (ASX: TLS) share price could be good value according to analysts at Goldman Sachs. In response to its T25 update, the broker retained its buy rating and $4.40 price target on the telco giant’s shares. It commented: “Telstra held its T25 Investor Day, with the key strategic/financial updates consistent with our prior expectations. FY25 targets for strong earnings growth were provided, implying a high degree of confidence in the outlook, given expectations for mid-single digit EBITDA growth p.a. and a similar quantum of mobile service revenue growth.”

Oil prices mixed

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is flat at US$72.60 a barrel and the Brent crude oil price is up 0.25% to US$75.65 a barrel. An easing storm threat in the US weighed on oil prices.

Carsales goes ex-div, dividends being paid

The Carsales.Com Ltd (ASX: CAR) share price could trade lower today after going ex-dividend for its 22.5 cents per share fully franked final dividend. Elsewhere, Fletcher Building Limited (ASX: FBU), Pinnacle Investment Management Group Ltd (ASX: PNI), and Tabcorp Holdings Limited (ASX: TAH) shareholders can look forward to being paid their dividend this morning.

Gold price sinks

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could come under pressure today after the gold price dropped. According to CNBC, the spot gold price is down 2.3% to US$1,754.10 an ounce. This was driven by a rise in the US dollar thanks to strong US economic data.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• The Telstra (ASX:TLS) share price has a new 52-week high. Here’s why
• This year’s ASX 200 Santa Rally to get a whopping $84bn cash boost
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• These 3 ASX 200 shares are the most heavily traded so far this Thursday

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 PINNACLE FPO. The Motley Fool Australia owns shares of and has recommended PINNACLE FPO 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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The South32 Ltd (ASX: S32) share price went up by 4% today, helping it reach a multi-year high.

Shareholders of South32 hasn’t seen the shares this high since the middle of 2019.

What has been helping the South32 share price?

It has been a buoyant time for investors in the ASX 200 resource share. The last month has seen it rise by 20.2%, it has risen by almost 30% over the last six months and it has gone up 62.50% over the past 12 months.

Growth in revenue or profit are often what investors look at when deciding what to value a business at.

Just under a month ago, South32 reported a “strong” operating result with record production at Worsley Alumina, Brazil Alumina and Australia Manganese. It also beat its production guidance that it initially gave for South Africa Manganese, Cerro Matoso and Cannington.

FY21 numbers

South32 saw a slight 4% increase of revenue to US$6.34 billion. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 32% to US$1.56 billion, underlying earnings before interest and tax (EBIT) grew 89% to US$844 million and underlying ‘earnings’ increased 153% to US$489 million.

However, various items unrelated to the underlying performance of the business, such as impairment charges totalling US$764 million (primarily relating to coal), resulted in a loss after tax of US$195 million.

Another element of the result was that the board decided to pay a full year ordinary dividend of US 4.9 cents per share, an increase of 133%, as well as a special dividend of 2 cents per share. Cash dividend payouts may also assist investor thoughts about the South32 share price.

During the year, South32 also worked on reshaping its portfolio. It completed the divestment of its South Africa Energy Coal business, the TEMCO manganese alloy smelter and a portfolio of non-core precious metal royalties.

In terms of its production guidance for FY22, the guidance was largely unchanged. Worsley Alumina guidance was for production of 3,965kt in FY22, with an estimated increase to 4,000kt in FY23. However, FY22 guidance for Brazil Alumina was reduced by 6% to 1,300kt due to repair work. Cannington guidance was increased by 10% thanks to the planned transition to 100% truck haulage in the fourth quarter of FY22 as well as the continuation of underground mine efficiencies that supported production growth in FY21.

Investor thoughts on the miner

The commodity prices may also be impacting investor thoughts on the South32 share price. One of the investment funds that recently commented on the miner and owns (or owned) shares was WAM Leaders Ltd (ASX: WLE). 

The fund manager of WAM Leaders noted that:

South32 derives almost half of its cash earnings from aluminium and alumina output. In August, aluminium prices surged to 10-year highs, as smelters in China face tighter controls on energy consumption to meet green targets. Driven by strong demand and news flow on supply disruptions, aluminium prices have almost doubled in the last year and contributed to South32 announcing a strong result in August. Through both dividends and an ongoing share buy-back, South32 will have returned to shareholders approximately $800 million, or 8% of its market capitalisation, in the 2021 calendar year.

At the end of August 2021, South32 was one of WAM Leaders’ largest 20 holdings.

The post The South32 (ASX:S32) share price just hit a multi-year high appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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