The Eastern Iron Limited (ASX: EFE) share price rocketed again today before being temporarily paused by the ASX.

The iron ore exploration company’s shares pounced 20.69% higher to 3.5 cents apiece. It’s worth noting that yesterday, its shares registered a mammoth 123% gain following a positive release to the market.

In comparison, the All Ordinaires Index (ASX: XAO) has lost 0.17% this week alone.

Why are Eastern Iron shares paused?

The details surrounding the temporary pause is sketchy with the company only stating that a release is pending.

With no information in regards to what this could be, we take a look back at yesterday’s announcement. This could provide some clarity on what to expect in the near future from Eastern Iron.

A non-binding Memorandum of Understanding (MOU) was executed with Ya Hua International Investment and Development Co. Ltd to form a strategic partnership. The Chinese companies are wholly-owned subsidiaries of Sichuan Yahua Industrial Group Co. Ltd (Yahua Group).

The collaboration between Eastern Iron and Yahua Group will lead to a joint venture in acquiring and developing lithium projects.

Furthermore, the parties will work together in bringing the Trigg Hill Lithium Tantalum Project online. However, this will come after the completion of Eastern Iron’s acquisition of Trigg Hill and an initial exploration target.

The company entered into a binding Heads of Agreement with Amery Holdings for an option to acquire a 100% interest in the Trigg Hill Project.

Under the terms, Yahua Group has first right of refusal for product offtake from any projects with Eastern Iron.

About the Eastern Iron share price

The past 12 months has been nothing special for Eastern Iron shares when not factoring in this week’s gain. Investors will be licking their lips with the company’s shares zooming close to 150% over the last 2 days.

On valuation metrics, Eastern Iron has doubled in value to $26.4 million, whilst maintaining approximately 745 million shares on issue.

The post Why is the Eastern Iron (ASX:EFE) share price in recess appeared first on The Motley Fool Australia.

More reading

• Why the Eastern Iron (ASX:EFE) share price is rocketing 107% today

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 Macquarie Group Ltd (ASX: MQG) share price has long lived in the shadows of its larger ASX banking brethren. The big 4 banks like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) seem to hold larger sway over the average ASX investors’ psyche than Macquarie does. Even so, Macquarie is still widely known as the ASX’s ‘fifth bank’.

And it has certainly earned that reputation over the past month or so.

Macquarie has had a banging 4 weeks. Not only has the Macquarie share price appreciated by a very healthy 7.3% over the past month but it has also clocked yet another new all-time high just this morning. Yep, Macquarie shares hit a share price of $170.65 just an hour or so ago.

That performance has smashed those of the other major ASX banks over the past month. Want proof? Let’s dig into it.

How has the Macquarie share price fared against the big 4 ASX banks?

So Commonwealth Bank shares have actually gone backwards over the past month. This leading ASX bank was trading at a share price of roughly $105 a share this time last month. But today, it’s presently fetching $101.92 a share.

Westpac? It’s up over the past month, but not nearly as much as Macquaire. Westpac shares were asking around $25.36 a month ago and are trading for $25.92 at the time of writing. That’s a difference of around 2.2%.

Let’s turn to National Australia Bank Ltd (ASX: NAB). NAB shares have fared a lot better than the other 2 ASX banks above. NAB has spent the past 4 weeks rising from just under $27 a share to today’s price of $28.54.

Just like Macquarie, NAB has also notched a new high of its own today, hitting a new 52-week high of $28.88 a share earlier this morning. Even so, NAB’s gains over the past month are sitting at 6.35%. Almost as good as Macquaire’s, but no cigar.

And, finally, we have Australia and New Zealand Banking Group Ltd (ASX: ANZ). Like CBA, ANZ shares have gone backwards over the past month. This (smaller) ASX bank was asking for around $28.90 a share a month ago. Today’s it’s currently trading at a share price of $28.01. That’s a slide of roughly 3.07% over the month just gone.

So, as you can see, Macquaire is the pick of the ASX banking shares bunch over the past month. NAB got close with its 6.35% gain. But even that healthy number doesn’t best Macquarie’s 7.3% performance.

At the current Macquarie Group share price, the ASX’s ‘fifth bank’ has a market capitalisation of $62.83 billion, a price-to-earnings (P/E) ratio of 20.66 and a dividend yield of 2.76%.

The post The Macquarie (ASX:MQG) share price is outperforming the ASX big 4 in the past month appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank 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 Aerometrex Ltd (ASX: AMX) share price has had a great month on the ASX.

The aerial mapping company’s stock has soared 20% since this time last month, seemingly on the back of its financial year 2021 (FY21) earnings.

Right now, the Aerometrex share price is 83.5 cents, 6.37% higher than its previous close.

Let’s take a look at the latest news from Aerometrex.

Aerometrex’s FY21

The Aerometrex share price has taken off over the past 30 days.

Its gains were helped along by a huge boost to its annual reoccurring revenue. For FY21, the company reported reoccurring revenue of $4.8 million, 189% more than in FY20.

Most of the increase was due to its MetroMap subscription service, which reported 416% more statutory reoccurring revenue than it did for the previous financial year.

Aerometrex also saw its total revenue increase by 4% to $20.9 million.

Also undoubtedly helping the Aerometrex share price was the company’s glowing outlook for FY22.

Following a purchase order signed by Alphabet’s (NASDAQ: GOOGL) Google for a 3D data set covering the San Francisco Bay area, Aerometrex believes it’s gained traction in the US and is in a good position to grow in the region.

Aerometrex believes the market for 3D mapping in the US will soon be worth $1 billion.

Additionally, it thinks it will see further revenue growth from its MetroMap subscription service in FY22, helped along by the launch of MetroMap 3.0.

Aerometrex share price snapshot

The Aerometrex share price’s recent gains haven’t been enough to put it back in the green on the ASX.

It is 32% lower than it was at the start of 2021. It has also fallen 35% since this time last year.

At its current share price, the company has a market capitalisation of around $79 million with approximately 94 million shares outstanding.

The post Why the Aerometrex (ASX: AMX) share price has rocketed 20% in a month appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares under $10 that have more than doubled in the past year
• Why the Rhythm Biosciences (ASX:RHY) share price is flying higher today
• Woolworths (ASX:WOW) share price lower after selling stake in meal box company
• Why the IGO (ASX:IGO) share price is slipping today
• Strike Energy (ASX:STX) share price lifts on project update

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, 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 Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). 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 is no secret that ASX shares have performed remarkably well in the past year. The S&P/ASX 200 Index (ASX: XJO) has surged 26% as companies bounced back from economic disruptions.

Although, there are ASX shares that have performed well above the Aussie benchmark index. The five ASX stocks we will be looking at today all trade for less than $10 per share and have more than doubled in value over the course of the last 12 months – let’s take a look!

5 ASX shares that have hit a homerun

Pilbara Minerals Ltd (ASX: PLS)

Emerging lithium producer Pilbara Minerals has experienced a meteoric surge in its share price over the past year. The widespread exuberance towards the lithium sector pushed this ASX share 562% higher during the period, now residing at $2.14 per share.

The $6.3 billion mining company has taken full advantage of a rocketing lithium price. In its full-year results for FY2021, Pilbara Minerals notched up a 142% increase in shipments to 281,440 dry metric tonnes. In conjunction with the higher commodity price, this lifted the company’s revenue by 109% to $175.8 million for the financial year.

Calix Ltd (ASX: CXL)

The next ASX share making the cut is highly topical given the ongoing concerns around climate change. In short, Calix focuses on developing technologies to “repair, preserve, and prevent future harm to [the planet]”. During the past year, the Calix share price has delivered a remarkable 315%. Today, the company’s shares command a $4.20 price tag.

It has been a stellar 12-month period for the company, receiving grants, entering multiple memorandums of understanding (MOU), and delivering revenue growth in FY21. Due to its ESG theme, Calix has caught the eye of Shaw and Partners advisor Adam Dawes. In speaking with The Motley Fool earlier in the month, Dawes shared the broker’s positive sentiment towards the company.

Dubber Corp Ltd (ASX: DUB)

Cloud-based call recording software company Dubber and its shareholders have enjoyed a plentiful period over the past year. As working from home continues to be popular, demand for call recording software jumped. In terms of revenue, Dubber achieved $23.3 million in FY21, an increase of 97% year on year. Likewise, the company’s share price has rocketed 244% over the past year.

This ASX share has been quick to capitalise on its success. In July, Dubber completed a $110 million capital raise to accelerate its growth objectives. One of these ambitious objectives includes increasing annual recurring revenue from $39 million to $100 million in the medium term.

Uniti Group Ltd (ASX: UWL)

Despite playing in a sector filled with giants, Uniti Group hasn’t shown any fear for going toe-to-toe. The provider of internet and telecommunication products and services delivered immense value for shareholders over the past year. For starters, the share price is up 188% — putting a smile on the faces of Uniti investors.

The rapidly growing ASX share is a product of execution on a bold acquisition strategy. In FY21 alone, Uniti completed the acquisitions of HabourISP, OptiComm, and Velocity. As a result, the company’s revenue exploded 175% to $159.9 million during the financial year. At the end of the period, Uniti’s contracted order book had grown to 250,460 construction premises.

Life360 Inc (ASX: 360)

Last but not least, Life360 has been helping families and investors have a more enjoyable time this past year. The family safety app maker eclipsed 32.2 million global monthly active users in FY21, an increase of 28% year on year. At the same time, this ASX share has surged by 134% in value over the past 12-months.

Investors drove the company’s share price higher as its ‘Paying Circles’ members continued to increase throughout the financial year. By the end of FY21, Life360 toted 1 million paying memberships, representing a 19% increase compared to the prior year.

The post 5 ASX shares under $10 that have more than doubled in the past year appeared first on The Motley Fool Australia.

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• Here are the 3 most traded ASX 200 shares this Monday
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• Why the Pilbara Minerals (ASX:PLS) share price is sinking 7% on Monday
• How is the Pilbara Minerals (ASX:PLS) share price performing against its sector?

Motley Fool contributor Mitchell Lawler 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 Dubber Corporation and Life360, Inc. The Motley Fool Australia owns shares of and has recommended Dubber Corporation. The Motley Fool Australia has recommended Uniti 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 Rhythm Biosciences Ltd (ASX: RHY) share price is charging higher in afternoon trade, up 7% to $1.21 per share.

Below we take a look at what’s driving investor interest in the ASX medical diagnostics technology company.

What did Rhythm announce?

The Rhythm Biosciences share price is gaining after the company reported it had successfully completed its non-renounceable pro-rata rights issue to raise $4.3 million, before costs.

While Rhythm set out to raise $4.3 million, it said actual subscriptions – including “entitlements, additional shares applied for, and letter of commitments” – totalled $12.05 million.

With actual subscriptions some 280% more than Rhythm was seeking, it said its share registry will return funds to unsuccessful applicants “as soon as practicable”.

As interest ran stronger than anticipated, the company said it will now offer a small “heavily scaled back placement”. This will select sophisticated and other exempt investors who had provided commitment letters for the previous offer.

Up to 1.5 million shares will be issued at a price of 85 cents per share to raise $1.28 million before costs. Rhythm said participants will also be offered 2 varieties of attaching, unlisted options.

John Hancock, who cornerstoned the placement, said: “The innovative ColoSTAT product, developed from research by the CSIRO and Rhythm, has the potential to be a global game-changer in the early mass-market screening for colorectal cancer.”

Commenting on the offer, Rhythm’s CEO, Glenn Gilbert said:

I’m pleased that the offer was strongly supported by existing shareholders, alongside the board and myself, further demonstrating our alignment. Coupled with an R&D tax incentive refund, expected shortly, the company is well funded to execute on our development and commercialisation plans outlined in our FY22 strategic plan.

Rhythm Biosciences share price snapshot

The Rhythm Biosciences share price has gained an eye-popping 991% over the past 12 months. Over that same time, the All Ordinaries Index (ASX: XAO) is up 27%.

Over the past month, Rhythm’s shares are up 24%.

The post Why the Rhythm Biosciences (ASX:RHY) share price is flying higher today appeared first on The Motley Fool Australia.

More reading

• Woolworths (ASX:WOW) share price lower after selling stake in meal box company
• Why the IGO (ASX:IGO) share price is slipping today
• Strike Energy (ASX:STX) share price lifts on project update
• Why the Suncorp (ASX:SUN) share price is edging higher today
• Fortescue (ASX:FMG) share price craters to 10-month low as iron ore prices plunge

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 Woolworths Limited (ASX: WOW) share price is trading slightly lower in today’s session.

Shares in the supermarket giant have stalled after the company announced a change to its holdings.

Let’s take a look at what Woolworths announced.

Woolworths sells $54 million stake in Marley Spoon

Earlier today, Woolworths announced that the company has ceased being a substantial holder in Marley Spoon AG (ASX: MMM).

As reported by my Foolish colleague, the retail conglomerate has sold its stake in the food box delivery company.

Woolworths announced that it had sold 28,026,000 Chess Depository Interests (CDIs) in Marley Spoon via an underwritten block trade.

The trade, worth approximately $54 million, represented a 9.87% stake in Marley Spoon.

Woolworths sold its interest at $1.91 per CDI, equating to a 6% discount on Marley Spoon’s previous closing price.

In 2019 and 2021, Woolworths invested nearly $30 million in the food box delivery company via its subsidiary W23 Investments Pty Ltd.

More on Woolworths

Apart from the Marley Spoon announcement, the Woolworths share price has been in the spotlight recently.

In May, the supermarket giant made headlines following the demerger of its Endeavour business.

The demerger saw Endeavour Group Ltd (ASX: EDV) become a separately listed entity that owns retail and drinks businesses.

Late last month, shares in Woolworths received a boost after reporting strong full-year results for FY21.

Highlights from the company’s report included;

• Group sales rose 5.7% to $67,278 million
• eCommerce sales surged 58.1% to $5,602 million
• Group earnings before interest and tax (EBIT) increased 13.7% to $3,663 million
• Group net profit after tax up 22.9% to $1,972 million
• Final dividend of 55 cents per share

Most recently, Woolworths released its first annual sustainability report.

Since launching its Sustainability Plan 2025 in 2020, Woolworths announced its carbon emissions are 27% less than its 2015 baseline.

For FY21, the company also highlighted it has reduced its plastic usage by more than 2,500 tonnes.

Snapshot of the Woolworths share price

Shares in the company have had a stellar year thus far, hitting record highs in late August.

Since the start of the year, the Woolworths share price has surged more than 16%.

At the time of writing, shares in the supermarket giant are trading slightly lower for the year at around $40.42.

The post Woolworths (ASX:WOW) share price lower after selling stake in meal box company appeared first on The Motley Fool Australia.

More reading

• Why Appen, BlueScope, Fortescue, & Marley Spoon shares are dropping
• Marley Spoon (ASX:MMM) share price sinks 8% after Woolworths sells its stake
• Here’s why the Woolworths (ASX:WOW) share price is in focus today
• The Woolworths (ASX:WOW) share price has gained 17% in the last 6 months
• 5 things to watch on the ASX 200 on Thursday

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. owns shares of and has recommended Marley Spoon AG. The Motley Fool Australia owns shares of and has recommended Marley Spoon AG. 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 IGO Ltd (ASX: IGO) share price has dipped into the red in afternoon trade on Tuesday.

Shares in the minerals mining company are now exchanging hands at $9.72 apiece, a slight 0.3% dip out of the money.

For context, the S&P/ASX 200 index (ASX: XJO) is also down 0.3% on the day.

Let’s investigate further.

What’s up with the IGO share price today?

The IGO share price has climbed over 10% since the company announced its Kwinana lithium hydroxide refinery produced its first chemical product on 23 August.

It might come as a surprise therefore why IGO shares are on the way down today in the absence of any market sensitive information.

However, one important consideration as to why the company’s share price has taken a dip today, is that IGO shares are going ‘ex-dividend’ today.

The ex-dividend date serves as an important date to remember as investors who buy a company’s shares after the stipulated time will not be eligible to receive the subsequent dividend payment into their bank accounts.

What’s more, is that in most cases, a company’s share price will drop by roughly the same amount as its upcoming dividend payment on the ex-dividend date.

This is because the ex-dividend date is the day on which a company’s shares theoretically begin to trade without the value of its dividend payment baked into the share price.

Logically, we can expect the IGO share price to dip by roughly the same amount as its dividend on this basis.

For instance, the company declared a final and FY21 total dividend of 10 cents per share in its FY21 earnings report.

Since the close on Monday, IGO shares have trended down, and have given up roughly 8 cents per share to the time of writing, in line with the total dividend the company declared.

Therefore, a dip in the IGO share price was to be expected, given the company went ex-dividend from today.

IGO share price snapshot

The IGO share price has gained 52% this year to date, extending the gain over the past 12 months to 120%. Despite these gains, IGO shares have slipped into the red over the last month.

Regardless, both of the longer term results have outpaced the broad index’s return of around 25% over the past year.

The post Why the IGO (ASX:IGO) share price is slipping today appeared first on The Motley Fool Australia.

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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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The Strike Energy Ltd (ASX: STX) share price is gaining today after the company released an update on its Mid-West Geothermal Power Project.

Strike stated the project’s potential geothermal power could make a big impact on Western Australia’s decarbonisation agenda, zero-carbon electricity supply, and its future hydrogen economy.

Strike is also considering ways to use the residual waste heat from the project’s working fluid. Some potential uses include reverse osmosis and purification of some of the project’s geothermal fluid or electrolysis for green hydrogen production.

Right now, the Strike Energy share price is 28 cents, 1.85% higher than its previous closing price.

Let’s take a closer look at today’s news from the explorer and developer of oil and gas resources.

Strike’s project update

The Strike Energy share price is in the green following news of its zero-carbon Mid-West Geothermal Power Project.

The company had previously placed 12 heat needles into the Perth Basin project to map surface thermal gradients. Today, the company announced the resulting data will begin to be processed before it’s used for the project’s reservoir model.

Following the needle survey, Strike can apply for a Geothermal Exploration Permit (GEP). The permit can cover up to half of the 3,500 square kilometre Geothermal Special Prospecting Authority area.

Strike will identify and select the areas it believes will generate the most power for its GEP. It expects to enter its application in the final quarter of this year.

Strike has also begun 3D seismic inversion modelling to map subsurface water-wet and permeable sandstones at its Kingia reservoir. The company says previous major gas discoveries have housed similar abnormalities.

Data from the modelling will be used to start an independent inferred resource and power assessment for the reservoir. Strike expects its inferred resource will be booked in the coming quarter. The inferred resource will then support an indicated resource in 2022.

Finally, potentially also boosting the Strike Energy share price, is news the company has announced it’s working with a range of potential collaborators to progress its project’s concept selection. The concept selection is taking in knowledge on drilling, surface power generation, regulatory approvals, network service providers, and electricity off-takers.

Strike Energy share price snapshot

Today’s gains included, the Strike Energy share price has fallen 5% year to date. However, it is 19% higher than it was this time last year.

The post Strike Energy (ASX:STX) share price lifts on project update appeared first on The Motley Fool Australia.

More reading

• Why the Strike Energy (ASX:STX) share price is down 6% today

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 Suncorp Group Ltd (ASX: SUN) share price is slightly higher on Tuesday following an announcement from the banking and insurance giant.

At the time of writing, Suncorp shares are up 0.19% to $12.855. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.15% to 7,517 points.

What did Suncorp update the ASX with?

According to the release, Suncorp advised it has opened its capital notes 4 offer to syndicate brokers and institutional investors. The former is made up of retail or high net worth clients.

The company has allocated $375 million in firm commitments with a margin set at 2.9% per annum. However, the total amount to be raised will depend on the amount and value of applications received.

The issue price is set at $100 per capital note 4, with a minimum investment of $5,000.

Furthermore, the distribution rate — (bank bill rate + margin) x (tax rate) — will be calculated on a quarterly basis.

Unless exchanged earlier, the notes will convert into a variable number of Suncorp ordinary shares on 17 December 2030.

The capital notes 4 are being issued as part of Suncorp’s ongoing funding and capital management strategy. Proceeds are expected to be allocated towards general corporate and funding purposes.

The closing date for the capital 4 notes is on 20 September 2021. Settlement is due to take place on 22 September with the notes trading on 24 September.

About the Suncorp share price

Over the last 12 months, Suncorp shares have gained 40% reflecting a strong recovery since COVID-19.

The company’s share price is up more than 30% year-to-date. This is an impressive rebound from when Suncorp shares were trading for as little as $8 a share in November 2020.

Today, the share price is nearing its 52-week high of $13.26 achieved in mid-August.

In valuation terms, Suncorp commands a market capitalisation of roughly $16.5 billion, with 1.2 billion shares on issue.

The post Why the Suncorp (ASX:SUN) share price is edging higher today 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 Fortescue Metals Group Limited (ASX: FMG) share price continues to crater, down 3.34% to a 10-month low of $17.95 on Tuesday.

Iron ore prices plunge to year-to-date lows

Investors are offloading the BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue shares on Tuesday following another pullback in iron ore prices overnight.

According to Fastmarkets MB, iron ore prices fell 8.8% overnight to US$132.38/t as a result of increasing government oversight on industrial production.

“Seaborne iron ore prices fell on Monday September 6, due to Chinese authorities taking a stricter stance against steelmakers on steel production curbs and the start of sintering restrictions,” Fastmarkets reported.

In addition, China’s most-traded iron ore futures on the Dalian Commodity Exchange for January delivery tumbled more than 6% on Monday to lows of 723.5 yuan per tonne, the lowest level in more than a year.

Where does the Fortescue share price go from here?

The Fortescue share price is well into negative year-to-date territory, down 27.4% in 2021. It is up just 0.67% in the past 12-months.

Today’s 10-month low is broadly in line with iron ore spot prices coming back to December 2020 levels and futures prices hitting 12-month lows.

Iron ore prices will likely continue to dictate the Fortescue share price performance.

Unfortunately, recent economic data doesn’t paint a very bullish narrative.

According to Reuters, China’s factory activity contracted for the first time since April 2020 as COVID-19 restrictions, supply chain woes and higher raw material prices weighed on output.

From a supply side perspective, Mining.com reported that ratings agency, Fitch Solutions, forecasts a jump in global iron ore production in the coming years.

“Global iron ore production growth will accelerate in the coming years, bringing an end to the stagnation that has persisted since iron ore prices hit a decade-low average of US$55.0/tonne in 2015.”

Fitch forecasts “global mine output growth to average 3.6% over 2021-2025 compared to -2.3% over the previous five years. This would lift annual production by 571mn tonnes in 2025 compared to 2020 levels, roughly the equivalent of India and Brazil’s combined 2020 output.”

The post Fortescue (ASX:FMG) share price craters to 10-month low as iron ore prices plunge appeared first on The Motley Fool Australia.

More reading

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• ASX 200 midday update: BHP & Fortescue fall, Flight Centre storms higher
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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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