The Newcrest Mining Ltd (ASX: NCM) share price has slipped into the red over the past few weeks, despite a strong FY21 earnings result last month.

Whereas the S&P/ASX 200 index (ASX: XJO) has slipped 2.5% into the red over the last month, Newcrest shares have fallen by around 3%.

Let’s investigate why this is so.

What’s happened since Newcrest Mining reported its FY21 earnings?

The Newcrest share price has been on the move since the company reported its FY21 earnings last month. In its report, the company recognised a 17% year-on-year gain in revenue, coupled with a record free cash-flow conversion of $1.1 billion.

Due to all of this available cash, Newcrest declared a fully franked final dividend of US40 cents (AU54 cents) per share, signifying a 129% increase from the year before.

As such, shareholders are to enjoy a total dividend of US55 cents (AU75 cents) per share in their bank accounts at the end of this month.

One would think this kind of performance warrants a reward from investors, as is the case with similar companies albeit in different industries. Yet, the Newcrest share price has decreased 4% since reporting.

However, Newcrest is in a unique position that means its fundamentals sit second on the throne in how market payers value its share price. What is the reason for this?

The reason is that, as an ASX resources share that mines and produces commodities, Newcrest Mining is considered a price taker. That means its share price fluctuates with price fluctuations in the broader commodity markets.

Looking at the chart of the gold spot price this year, we can see it’s been on a wild ride. First of all, it’s 5.5% down off its high in January this year, but its journey from February to September has been one of significant volatility.

Zooming in over the past few weeks specifically, we can see gold has come off two recent highs of approximately US$1,830/t.oz in August and September, and now trades at US$1,791/t.oz.

Taking these points into consideration, it starts to make sense as to why the Newcrest share price is down 4% since reporting its FY21 earnings.

Newcrest share price snapshot

The Newcrest share price has been on a bumpy ride this year to date and has posted a loss of 5% since January 1.

It has also lost 24% over the past 12 months. Over the last week alone, Newcrest shares are down a further 3%.

These results have lagged the broad index’s return of around 25% over the past year.

The post The Newcrest Mining (ASX:NCM) share price is down 4% since reporting appeared first on The Motley Fool Australia.

More reading

• Is worst over for ASX gold shares as Macquarie upgrades sector?
• 5 things to watch on the ASX 200 on Monday
• How have ASX resources shares performed during the August 2021 earnings season?
• 5 things to watch on the ASX 200 on Friday
• ASX 200 midday update: Macquarie jumps, gold miners sink

The author Zach Bristow has no positions 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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In late trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.1% to 7,435.1 points.

Four ASX shares that have failed to follow the market higher are listed below. Here’s why they are tumbling:

Australian Ethical Investment Limited (ASX: AEF)

The Australian Ethical share price has sunk 13.5% to $9.52 despite there being no news out of the ethical investment company. However, with its shares more than doubling this year prior to today, some investors could be taking a bit of profit off the table.

Brambles Limited (ASX: BXB)

The Brambles share price has fallen 8% to $11.25. Investors have been selling this supply chain logistics company’s shares following the release of an update after the market close on Monday. That update revealed that the company is expecting underlying profit growth of just ~1% to ~2% in FY 2022. This is due to management flagging FY 2022 as an investment year for the company.

Novonix Ltd (ASX: NVX)

The Novonix share price is down 4.5% to $5.57. This battery materials company’s shares were on fire last week but have now run out of fuel. A broker note out of Morgans on Friday could be the reason why. According to the note, the broker has downgraded the company’s shares to a hold rating with a $5.68 price target. Morgans felt that its shares were fully valued following a strong gain.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down 2% to $6.88. This is despite the buy now pay later provider releasing its Retail Investor Day presentation this morning. That presentation revealed the company’s plans for savings accounts, rewards, and cryptocurrencies. Investors may be disappointed that no trading update was provided with the release. Especially given concerns that its growth could be slowing.

The post Why Australian Ethical, Brambles, Novonix, & Zip shares are tumbling lower appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• Which ASX 300 shares are the biggest winners and losers today?
• Brambles (ASX:BXB) share price slides 11% after investor day presentation
• ASX 200 (ASX:XJO) midday update: Westpac asset sale blocked, Zip crypto update
• Zip (ASX:Z1P) share price lower despite savings and crypto products update

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 Australian Ethical Investment Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has recommended Australian Ethical Investment 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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Commonwealth Bank of Australia‘s (ASX: CBA) share price has edged into the green in late afternoon trading, up a slender 0.3%.

The CBA share price has closely mirrored the performance of the S&P/ASX 200 Index (ASX: XJO) today. The index also spent much of the day in the red until clawing back to a small gain at time of writing.

Below we look at CommBank’s latest announcement on the sustainability front.

What green development loans is the bank supporting?

In a media release unlikely to have a material impact on the CBA share price today, CommBank reported it served as the sole financier and “green coordinator” for Charter Hall Group‘s (ASX: CHC) 480 Swan Street development, located in Victoria.

According CommBank, the $202 million construction facility is Australia’s maiden Climate Bond Initiative-certified Green Development Loan.

On completion, Charter Hall’s development will house the headquarters of Australia Post. Construction is being undertaken under carbon-neutral guidelines. The goal is to achieve a 6-star Green Star rating and a 5-star NABERS Energy rating.

The International Energy Agency (IAA) estimates that between construction and operation, buildings across the world account for more than one third of global energy use.

Commenting on the green development loan, CBA’s managing director, real estate and future cities Michael Thorpe said:

Charter Hall’s green construction facility breaks new ground in Australia’s green loan market, an achievement that reflects the high sustainability standards at the core of their design and development process.

Charles Davis, managing director, sustainable finance and ESG at Commonwealth Bank, added, “This new application of the green loan overlay will incentivise more Australian property developers to commit to building new commercial building stock to high environmental standards.”

To secure green development loans, projects need to meet various sustainability benchmarks in both development and operational stages.

CBA share price snapshot

Up 53% over the past full year, the CBA share price has slipped around 0.6% lower over the last month.

CBA’s shares are currently trading for $101.64.

The post CBA (ASX:CBA) share price edging higher as bank supports green loans appeared first on The Motley Fool Australia.

More reading

• The CBA (ASX:CBA) share price is underperforming its big four peers today
• National Australia Bank (ASX:NAB) share price dragged lower by downgrade
• CBA (ASX:CBA) share price lower amid crypto defamation lawsuit
• A look at insider buying among ASX 200 big four bank shares
• These ASX 200 dividend shares are about to dish out $40bn to shareholders

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 bounce in the St Barbara Ltd (ASX: SBM) share price is giving hope that the embattled gold miner has turned a corner.

The small cap gold producer jumped 2.5% to $1.49 in after lunch trade and has bounced over 4% since hitting a six-year low last week.

There are a few reasons to explain the underperformance of the St Barbara share price. The sharp drop in the gold price is one, but the miner also struggled with company-specific issues.

Why the St Barbara share price was under pressure

St Barbara withdrew its FY21 guidance as problems at its PNG operations weighed. It also wrote down the value of its Canadian assets due to ongoing production delays.

But improving sentiment towards gold could set the struggling ASX gold miner up for further gains.

Investors have dumped gold shares as the precious metal tumbled from record highs of over US$2,000 to around US$1,800 an ounce.

However, several brokers have recently turned cautiously positive towards the sector after the big sell-off.

Value emerging in ASX gold shares

As I reported yesterday, Macquarie Group Ltd (ASX: MQG) is one that upgraded its view on ASX gold shares.

Morgans is another that sees value emerging in the sector, which has fallen harder than the gold price.

“While the USD gold price was strongest at the beginning of June, in AUD terms the spot gold price peaked in late August above A$2,500/oz before declining slightly,” said Morgans.

“Inflation concerns seemed to subside globally, with high results considered transitory.”

Is the St Barbara share price a buy?

But before you rush in to buy the St Barbara share price, or any ASX gold shares for that matter, be warned that not all stand to benefit equally from a potential rebound in the commodity.

“No two gold miners are the same. Scale of production, jurisdiction and number of operations all factor into the market valuation,” explained Morgans.

“Larger miners provide relatively ‘safer’ optionality to the gold price with production spread across several operations.

“Small producers may offer more leverage to the gold price, or upside from discovery or production growth, but at relatively higher risk.”

Best ASX gold shares to buy now

Looking at the ASX gold shares under its coverage, Morgans picks the Ramelius Resources Limited (ASX: RMS) share price as a standout buy.

Ramelius delivered a record FY21 production result and is well placed to break the record again this year. This means Ramelius could be a safer investment than the St Barbara share price.

“With forward guidance over 9 years, RMS continues to be one of the most open gold producers we see, and we believe upside remains at Edna May and Eridanus,” said Morgans.

The broker’s 12-month price target on the Ramelius share price is $2.08 a share.

The post Why the St Barbara Ltd (ASX: SBM) share price is outperforming today appeared first on The Motley Fool Australia.

More reading

• Is worst over for ASX gold shares as Macquarie upgrades sector?
• Macquarie (ASX:MQG) share price struggles amid broker sell rating
• Top brokers name 3 ASX shares to sell next week
• September is not being kind to the BHP (ASX:BHP) share price
• Ramelius (ASX:RMS) share price lifts on boosted resource statement

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited and Ramelius Resources 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 Macquarie 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 Vanguard Australian Shares Index ETF (ASX: VAS) has been struggling over the month of September so far. Even though it’s only 14 September today, already this ASX exchange-traded fund (ETF) has lost around 0.58% over the month to date.

VAS is the ASX’s most popular ETF. It is run by the reputable Vanguard Group, which is not-for-profit. It currently has more than $9 billion in funds under management, and tracks the S&P/ASX 300 Index (ASX: XKO). The ASX 300 covers the 300 largest ASX shares by market capitalisation.

With such a broad slice of the Australian market, many investors use VAS as an easy way to get a piece of the entire ASX in their share portfolios.

But since VAS faithfully tracks the ASX 300, warts and all, its performance over September so far reflects that of the benchmark index itself. So it’s no surprise to see that the ASX 300 is also marginally down over this month so far.

So why has VAS been struggling in September? Well, if VAS and the ASS 300 are struggling, it almost certainly means that at least some of their mutual major constituents are also struggling.

Which ASX 300 shares have been weighing VAS down?

So let’s dig a little deeper. Vanguard tells us that the current top 5 shares in VAS are as follows:

1. Commonwealth Bank of Australia (ASX: CBA) with a weighting of 8.24%
2. BHP Group Ltd (ASX: BHP) with a weighting of 7.35%
3. CSL Limited (ASX: CSL) with a weighting of 6.13%
4. Westpac Banking Corp (ASX: WBC) with a weighting of 4.19%
5. and National Australia Bank Ltd (ASX: NAB) with a weighting of 3.98%

So let’s see how these ASX blue chip shares have performed over September so far.

CBA shares have spent the month to date on quite a roll. This ASX bank is up 1.31% since 31 August.

In contrast, BHP has certainly had a month to forget so far. The Big Australian has lost a nasty 8.33% since the start of the month.

CSL has also had a rough start to Spring. It’s down around 3.7% over September thus far.

Westpac shares have also declined the invitation to CBA’s party. This ASX bank has gone backwards by roughly 0.43% since 31 August.

However, NAB shares did get an invite, it seems. NAB has managed to add around 1.51% since the start of the month.

So, it looks as though VAS investors can largely blame BHP, CSL and maybe Westpac for the struggles that this ETF has seen over September so far. But then again, we’re only roughly halfway through the month, so who knows what the second half will bring for the Vanguard Australian Shares Index ETF.

The post Why is the VAS (ASX:VAS) share price struggling in September? appeared first on The Motley Fool Australia.

More reading

• The latest ASX 200 mining shares to get hit by broker downgrade
• How have these ASX 200 iron ore shares performed since reporting results?
• BHP (ASX:BHP) share price lifts following climate action plan release
• The CBA (ASX:CBA) share price is underperforming its big four peers today
• ASX 200 (ASX:XJO) midday update: Westpac asset sale blocked, Zip crypto update

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. 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 Woodside Petroleum Limited (ASX: WPL) share price is booming on Tuesday, up 5.82% to $20.73.

What’s driving the Woodside share price?

Oil prices jump overnight

Oil prices posted strong gains overnight with crude oil rallying 2.63% to US$70.35/barrel.

The uptick in oil prices is driving broad-based buying across the energy sector with the S&P/ASX 200 Energy (INDEXASX: XEJ) index up 4.02%.

Woodside share price peers Oil Search Ltd (ASX: OSH), Santos Ltd (ASX: STO) and Beach Energy Ltd (ASX: BPT) are also rallying, up 4.95%, 4.38% and 7.21% respectively.

OPEC monthly oil market report

OPEC’s monthly oil market report covers major issues affecting the oil market and provides an outlook for crude oil market developments.

OPEC released its report overnight, revealing a more bullish view of the global economy and oil demand.

It upgraded its global oil forecasts, citing that oil demand will exceed pre-pandemic levels in 2022.

In 2022, oil demand is expected to robustly grow by around 4.2 mb/d, some 0.9 mb/d higher compared to last month’s assessment. Revisions were driven by both the OECD and non-OECD, as the recovery in various fuels is expected to be stronger than anticipated and further supported by a steady economic outlook in all regions. Oil demand in 2022 is now projected to reach 100.8 mb/d, exceeding prepandemic levels.

In anticipation of increased demand, OPEC and its allies agreed to steadily increase production.

OPEC and non-OPEC participating countries in the Declaration of Cooperation (DoC) have agreed to adjust upward their overall production by 0.4 mb/d on a monthly basis starting August 2021. Several other non-OPEC producers also raised their production in July.

Woodside share price snapshot

The Woodside share price is down 9% year-to-date despite oil prices trading well above pre-COVID levels.

The post Why the Woodside (ASX:WPL) share price is leaping 6% today appeared first on The Motley Fool Australia.

More reading

• Why Adairs, Beach, Catapult, & Myer shares are charging higher
• Which ASX 300 shares are the biggest winners and losers today?
• ASX 200 energy shares are leading the market on Tuesday
• Santos (ASX:STO) share price rallies 5% on bullish OPEC oil outlook
• ASX 200 (ASX:XJO) midday update: Westpac asset sale blocked, Zip crypto update

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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The Bubs Australia Ltd (ASX: BUB) share price has plummeted this month despite the company’s United States launch date fast approaching.

Bubs announced its plans to launch in the US back in June, with its products set to hit North America’s virtual shelves this month.

However, despite the anticipated international launch, the Bubs share price has slid a massive 8.8% since its first close of September.

The formula products will be launched on both Walmart‘s (NYSE: WMT) and Amazon‘s (NASDAQ: AMZN) online stores. While the products can already be found on Amazon.com, it seems they aren’t available for purchase on either of the sites yet.

Right now, the Bubs share price is 39 cents, having gained 1.3% today.

Let’s take a closer look at Bubs’ upcoming US launch.

Bubs’ US launch is imminent

The Bubs Australia share price has had a rough start to the month despite the company’s imminent overseas launch.

Two of the company’s products will soon be available to be purchased by US consumers. They are both from the company’s Aussie Bubs range of toddler formulas. One is a goat milk-based product and the other is a cow milk-based product.

In its financial year 2021 results presentation, Bubs reported its first shipment of products destined for the online retailing megaliths had cleared US customs and was found to be compliant with US Food and Drug Administration labelling standards.

In anticipation of the launch, Bubs Australia has created a North American subsidiary named Aussie Bubs Inc. Aussie Bubs Inc is based in northern California and will spearhead the company’s US marketing.

However, the excitement surrounding the international launch hasn’t transferred to the company’s share price.

Bubs share price snapshot

The dip experienced by the Bubs share price in September has added to its poor year’s performance.

Right now, the company’s share price is 35% lower than it was at the start of 2021. It has also fallen 50% since this time last year.

The post Bubs (ASX:BUB) share price down 9% in September despite upcoming US launch appeared first on The Motley Fool Australia.

More reading

• Why Bubs, Harvey Norman, Mesoblast, & Regis shares are dropping
• Bubs (ASX:BUB) share price sinks 7% after posting $74.7 million loss
• Why the Bubs (ASX:BUB) share price is zooming 7% higher today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon and BUBS AUST 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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On Monday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

According to a note out of Citi, its analysts have retained their sell rating and $28.00 price target on this banking giant’s shares. The broker has been looking at recent APRA data, which appears to indicate a sharp contraction in the bank’s mortgage book. Citi notes that this underperformance has been apparent for a number of years and believes it is being driven by a number of issues internally. And while the ANZ share price has fallen to its price target, it isn’t in a rush to change its rating. This is due to the belief that there are better options elsewhere in the sector. The ANZ share price is trading at $27.69.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $28.00 price target on this mining giant’s shares. The broker notes that Fortescue has the most ambitious decarbonisation goals of all the global miners. The broker believes it could cost over US$7 billion to decarbonise the estimated ~2.9Mt of CO2 greenhouse gas emissions from its Pilbara iron ore operations by 2030. Outside this, the broker feels its peers trade on more attractive valuations and has concerns over the widening discount of lower grade iron ore. The Fortescue share price is fetching $18.10 on Tuesday.

Zip Co Ltd (ASX: Z1P)

Analysts at Macquarie have retained their underperform rating and cut their price target on this buy now pay later (BNPL) provider’s shares to $5.70. According to the note, the broker has concerns of elevated bad debts, slowing customer growth, and softer web traffic. It also notes that this comes at a time when Zip will soon be cycling very strong months from the second quarter of FY 2021. The Zip share price is trading at $6.92 today.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• The latest ASX 200 mining shares to get hit by broker downgrade
• How have these ASX 200 iron ore shares performed since reporting results?
• The CBA (ASX:CBA) share price is underperforming its big four peers today
• ASX 200 (ASX:XJO) midday update: Westpac asset sale blocked, Zip crypto update
• Fortescue (ASX:FMG) share price struggles amid new production curbs in China

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 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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in afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has fought back from an earlier decline and is pushing higher. At the time of writing, the benchmark index is up 0.2% to 7,438.9 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are charging higher:

Adairs Ltd (ASX: ADH)

The Adairs share price is up 5% to $3.88. Investors have been buying the furniture and homewares retailer’s shares after it was the subject of a bullish broker note out of UBS. According to the note, the broker has retained its buy rating and lifted its price target by 23% to $5.40. The broker believes the company is well-placed for growth over the coming years.

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is up 7% to $1.11. Investors have been buying Beach and other energy shares on Tuesday after the oil price climbed to a one-week high. This has led to the S&P/ASX 200 Energy sector rising by a solid 4% this afternoon.

Catapult Group International Ltd (ASX: CAT)

The Catapult share price is up 2.5% to $1.90. This follows the announcement of a multi-year deal with German football club VfB Stuttgart. The leading Bundesliga team has subscribed to Catapult’s wearable solution for performance insights – Vector. This follows a deal with the football club in July for the company’s MatchTracker and Focus solutions.

Myer Holdings Ltd (ASX: MYR)

The Myer share price is up 4.5% to 51.7 cents. Investors appear to be buying this department store operator’s shares in anticipation of a strong full year result this week. Last month Myer revealed that it expects to report a 5.5% increase in sales and a net profit after tax between $47 million and $50 million. This compares to a loss of $11.3 million in FY 2020 and a profit of $33.2 million in FY 2019.

The post Why Adairs, Beach, Catapult, & Myer shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Which ASX 300 shares are the biggest winners and losers today?
• ASX 200 (ASX:XJO) midday update: Westpac asset sale blocked, Zip crypto update
• 5 things to watch on the ASX 200 on Tuesday
• 4 ASX shares just got a massive boost
• Dividends galore! 10 ASX shares trading ex-dividend on Wednesday

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 Catapult Group International Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO and Catapult Group International 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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Mining shares on the  S&P/ASX 200 Index (Index:^AXJO) are starting to find their feet again but some just got hit by a broker downgrade.

China’s move to put downward pressure on commodity prices and worries about economic slowdown from the COVID-19 delta variant triggered the recent sell-off in ASX mining shares.

But these concerns have taken a backseat today with the sector outperforming the broader market.

Iron ore downgrade weighs on ASX 200 mining shares

Nonetheless, JPMorgan have lowered it iron ore price forecast after noting that China’s steel output for July fell 8.4% year-on-year. The downtrend continued into August.

“After hovering around $220/t for most of Jun/Jul, iron ore has corrected to ~$130/t,” said the broker.

“The significant change in sentiment, combined with lower Chinese steel output has led us to cut our 2021/22 forecasts from $181/150/t to $165/125/t (-9%/-17%).”

Earnings cuts will hurt some more than others

The lower iron ore price assumption led JPMorgan to lower its earnings forecast for ASX iron ore shares by 10% to 35%.

This means a lower valuation for the BHP Group Ltd (ASX: BHP) share price, Rio Tinto Limited (ASX: RIO) share price and Fortescue Metals Group Limited (ASX: FMG) share price.

But it’s the Mineral Resources Limited (ASX: MIN) share price that has come out worst for wear. This is because Mineral Resources was the only one that JPMorgan downgraded to “neutral”.

Another ASX 200 mining share to get downgraded

This isn’t the only ASX 200 mining shares to get downgraded by the broker. The OZ Minerals Limited (ASX: OZL) share price was also cut to “neutral” as the copper producer’s valuation is looking stretched.

The OZ Minerals share price has surged around 70% over the past year when the ASX 200 rallied a more modest 26%.

Even fellow copper miner Sandfire Resources Ltd’s (ASX: SFR) share price couldn’t keep up as it notched a gain of around 40%.

Best ASX 200 shares to buy

But if you are wondering which ASX 200 mining shares you should be buying in the current environment, JPMorgan has a few suggestions.

One that is rated among its top picks is the BlueScope Steel Limited (ASX: BSL) share price. The dour outlook for iron ore is good news for steel producers as their input costs are falling.

Another hot ASX mining share to buy is the South32 Ltd (ASX: S32) share price.

“Aluminium and alumina price strength, along with a bounce in met coal sees a 38% FY22 earnings upgrade for S32,” explained JPMorgan.

The easy pickings in the sector may be gone, but there’s value to be found despite the commodity price volatility.

The post The latest ASX 200 mining shares to get hit by broker downgrade appeared first on The Motley Fool Australia.

More reading

• How have these ASX 200 iron ore shares performed since reporting results?
• BHP (ASX:BHP) share price lifts following climate action plan release
• The CBA (ASX:CBA) share price is underperforming its big four peers today
• ASX 200 (ASX:XJO) midday update: Westpac asset sale blocked, Zip crypto update
• Fortescue (ASX:FMG) share price struggles amid new production curbs in China

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Fortescue Metals Group Limited, OZ Minerals Limited, Rio Tinto Ltd., Sandfire Resources NL, and South32 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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