The Rio Tinto Limited (ASX: RIO) share price is edging higher following the release of its first quarter update.

At the time of writing, the mining giant’s shares are up 0.5% to $121.45.

How did Rio Tinto perform in the first quarter?

Rio Tinto was a relatively positive performer during the first quarter of FY 2021.

For the three months ended 31 March, the company achieved Pilbara iron ore shipments of 77.8 million tonnes. This was 7% higher than the first quarter of 2020.

However, production was down 2% on the prior corresponding period to 76.4 million tonnes. This was driven by above average wet weather in the mines through February and fixed plant reliability. Labour resource availability and weather challenges also disrupted maintenance.

And while tropical Cyclone Seroja has impacted mine and port operations in April, Rio Tinto’s full year iron ore guidance remains unchanged. As does its Pilbara iron ore 2021 unit cost guidance of $16.7-$17.7 per tonne.

Rio Tinto’s mined copper production came in at 120.5 thousand tonnes, which was 9% lower than the same period last year. This was due to lower recoveries and throughput at Escondida and Kennecott, which was partly offset by higher grades from the Oyu Tolgoi open pit.

The company also advised that its Oyu Tolgoi shipments have been affected by Chinese border restrictions due to increased cases of COVID-19 in Mongolia. It continues to work closely with authorities and its customers to manage the risk of supply chain disruptions.

Elsewhere, bauxite production was down 2%, aluminium production was up 3%, and titanium dioxide slag production was down 5%.

Management commentary

Rio Tinto’s new Chief Executive, Jakob Stausholm, was pleased with the quarter.

He said: “We achieved an overall solid operating performance in the first quarter. We have maintained guidance ranges in all our products, with site teams successfully managing the effects of significant rainfall, in particular at our Australian iron ore assets.”

Mr Stausholm also spoke about the controversies that ultimately led to the exit of former Chief Executive JS Jacques.

He commented: “It has been a period of deep reflection for the company, and I have personally spent a significant amount of time listening, learning and taking actions, in particular to better manage Traditional Owner partnerships and cultural heritage. I have appointed a new leadership team and the transition is progressing well. We have set out clear priorities to develop a stronger Rio Tinto.”

“Our focus is to become the best operator, strive for impeccable ESG credentials, excel in development and secure a strong social licence. This ambition will enable us to continue to deliver superior returns to shareholders, invest in sustaining and growing our portfolio, and make a broader contribution to society,” he concluded.

More reading

• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• Why ASX mining shares are likely to jump this morning
• ASX 200 edges higher, Origin crunched, Mineral Resources falls
• The Monadelphous (ASX:MND) share price surges as Rio Tinto (ASX:RIO) overhang lifts
• What’s going on with the Rio Tinto (ASX:RIO) share price today?

Motley Fool contributor James Mickleboro 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 Challenger Ltd (ASX: CGF) share price has come under pressure following the release of its third quarter update.

In morning trade, the annuities company’s shares are down 10% to $5.90.

How did Challenger perform in the third quarter?

Challenger was on form again during the third quarter and delivered further growth across the business.

According to the release, group assets under management rose 8% for the quarter and now exceed $100 billion. This means Challenger is now Australia’s third largest active asset manager.

Supporting this growth was a 6% increase in Life investment assets. Management notes that this was driven by record quarterly annuity sales of $1.6 billion and record quarterly Life book growth of 9.2% for the quarter.

Also growing during the third quarter was its funds under management (FUM) for the Funds Management business. Challenger recorded a 9% increase in FUM, including $7 billion of net flows.

Challenger’s Managing Director and Chief Executive Officer, Richard Howes, was pleased with the quarter and notes that its strategy is paying off.

He said: “Challenger’s performance in the third quarter demonstrates our strategy to diversify revenue is working. We have been investing in our distribution, product and marketing capability over recent years which is extending our customer reach and diversifying our product offering and distribution channels.”

What does this mean for FY 2021?

Based on its performance in the third quarter, management appears confident the company will achieve its normalised net profit before tax guidance for FY 2021.

However, this is only expected to be at the bottom end of the $390 million to $440 million guidance range. This may be what is weighing on the Challenger share price today.

Management notes that its guidance reflects the sharp decline in credit spreads over the year, which were not fully reflected in customer pricing.

Positively, Challenger is responding to the investment conditions by significantly adjusting annuity pricing. However, this won’t be in time to impact its FY 2021 earnings.

More reading

• Eroad (ASX:ERD) share price pushes higher following fourth quarter update
• Rio Tinto (ASX:RIO) share price higher after Q1 update
• Why the Seven (ASX:SVW) share price is on watch
• Why the Perseus Mining (ASX:PRU) share price is on watch
• ASX miners in focus as the copper price looks poised to crack above 10-year highs

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger 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 Seven Group Holdings (ASX: SVW) share price is on watch today after an update on its institutional equity capital raise.

Why is the Seven share price on watch?

This morning, Seven reported that it has successfully completed a $500 million fully underwritten institutional placement. That has resulted in 22.2 million new, fully paid, ordinary shares for those investors taking up the offer.

The “significantly oversubscribed” placement is a step forward for Seven and its capital management goals. Seven received strong support from new and existing domestic and international institutional investors.

The new shares from the placement come at an issuance price of $22.50 per share. That represents a 4% discount to the 16 April 2021 closing Seven share price of $23.43.

Proceeds from the placement, alongside the $50 million Share Purchase Plan (SPP), will be used for a variety of purposes. These include reducing overall net debt, restoring balance sheet flexibility, and improving liquidity. Seven has also flagged strategic investments, opportunistic acquisitions, and growing dividend payments as key focus areas going forward.

Managing director and CEO Ryan Stokes said:

We have a strong track record of disciplined capital allocation and remain committed to working to generate superior returns from our existing businesses and new opportunities to deliver value to all shareholders.

The $50 million SPP is non-underwritten with the potential to scale at Seven’s discretion. The SPP will be open to eligible retail shareholders at the lower of $22.50 per share or a 2.5% discount to volume-weighted average price (VWAP) in the last 5 days of the SPP offer period.

The issue date for the institutional New Shares is 22 April 2021, with the retail SPP shares to be issued on 18 May 2021.

The Seven share price is one to watch when it returns to trade following the institutional placement. Shares in the conglomerate are up 77.4% in the last 12 months despite a slow start to 2021.

More reading

• Why is the Seven Group (ASX:SVW) share price frozen?
• ASX 200 shares going ex-dividend this week 

Motley Fool contributor Ken Hall 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 Perseus Mining Ltd (ASX: PRU) share price is one to watch in early trade after the Aussie miner’s latest quarterly report.

Why is the Perseus share price on watch today?

Perseus this morning provided its quarterly report for the period ended 31 March 2021 (Q3 2021). The period was highlighted by strong production and sales increases for the Aussie gold miner.

Perseus reported a 29 per cent increase in gold production to 88,458 ounces. Up from 68,614 ounces in the December quarter. That was largely thanks to ramp up efforts at the group’s Yaouré mine during Q3 2021.

Those strong production numbers came at a lower cost of US$852 per ounce compared to $915 in the December quarter. All-in site cost (AISC) fell 3.6% to US$999 per ounce with a financial year to date AISC of $1,000 per ounce.

It wasn’t just strong production numbers that make the Perseus Mining share price worth watching this morning. Gold sales jumped 30.1% higher to 87,215 ounces during the quarter. For context, Perseus recorded 127,085 ounces in the first two quarters combined, with 66,644 ounces in the December quarter.

Commissioning was successfully completed at the Yaouré Gold Mine with commercial production formally declared on 31 March 2021. That helped to boost Perseus’ numbers while demand remained strong during the period.

Perseus reported notional cash flow of US$41.7 million for the quarter, down from US$44.6 million in Q2 2021. The lower cash flow figure fell despite strong production as the average sales price dropped 3.5% from last quarter to US$1,628 per ounce.

The Perseus Mining share price is one to watch after also providing an update on the outlook for the final quarter. Perseus said it is on track to achieve its goal of more than 500,000 ounces of gold production per year. The Aussie mining company is expecting that to come at a cash operating margin of US$400 per ounce or more.

Foolish takeaway

The Perseus Mining share price is on watch after its latest quarterly update highlighted by strong production figures. “Encouraging” exploration results and an update on its production targets make the Aussie gold miner worth watching.

The Aussie miner currently boasts a market capitalisation of $1.8 billion and is underperforming the S&P/ASX 300 Index (ASX: XJO) by 6.6% in 2021.

More reading

• Is it time for ASX gold shares to make a comeback?
• Why the SG Fleet (ASX:SGF) share price is one to watch next week
• Here’s an ASX tech share flying under the radar: fundie

Motley Fool contributor Ken Hall 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 rally in ASX copper shares could extend for a few more months as experts believe the metal is heading to fresh 10-year highs.

That’s not only great news for ASX copper producers, but there’s another less obvious group of ASX shares that look set to ride this uptrend. I’ll touch on that more later.

Why copper prices could set new record highs

The benchmark copper price on the London Metal Exchange jumped 1.8% to US$9,379.50 a tonne on Monday night.

It’s now within striking distance of its February high of US$9,617 – it’s highest point in a decade.

Commodity analysts believe the path of least resistance is up for the commodity, reported Reuters.

ASX mining shares riding on Dr Copper

The bullish sentiment largely explains why the OZ Minerals Limited (ASX: OZL) share price and Sandfire Resources Ltd (ASX: SFR) share price have outperformed. These pure-play copper miners have outrun the S&P/ASX 200 Index (Index:^AXJO) in the past six months.

The BHP Group Ltd (ASX: BHP) share price also benefits from rising copper prices. But its diversified business means it will not enjoy the full benefit of the rallying copper price.

As mentioned earlier, there’s another group of ASX shares that have been largely overlooked by copper bulls. These are ASX gold shares.

Copper offsets weakness in the gold price

Copper and gold are normally found together. ASX gold miners sell the copper to lower to cost of production for their gold operations.

This means a high copper price will allow miners like the Newcrest Mining Ltd (ASX: NCM) share price to expand their margins. This may in effect offset the weakening gold price.

Copper price forecasts

Saxo Bank analyst Ole Hansen believes it’s only a matter of time before copper hits US$10,000 a tonnes, reported Reuters.

Citigroup echoed a similar view as it’s forecasting it to hit US$10,500 within three months.

There are a few reasons for their upbeat outlook.

What’s driving copper prices higher

The acceleration in global economic growth bodes well for industrial production. Copper is a key input in that process.

The recent drop in US government bond yields and the greenback is also helping. These events aren’t only creating a tailwind for shares, but also make copper more attractive. Commodity prices, which are expressed in US dollars, tend to more in opposite direction to the greenback.

Throw in ebullient markets, tight supply and a strong demand outlook, and you can see why the experts at ING are also expecting copper to test the February highs.

Foolish takeaway

We also shouldn’t forget that the electric vehicle craze, which sent ASX lithium miners like the Galaxy Resources Limited (ASX: GXY) share price and Orocobre Limited (ASX: ORE) share price soaring, bodes well for copper too.

However, it isn’t all good news for copper. ING pointed out that the current restocking cycle is ending and the crackdown on easy credit by the Chinese government may dampen enthusiasm for the metal, reported Reuters.

But I don’t think these headwinds will be enough to derail the copper rally – not in the near-term at least.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why Eagers Auto, Orocobre, Sims, & Titomic shares are storming higher
• Top broker picks ASX shares next in line for a profit upgrade
• Galaxy Resources (ASX:GXY) share price jumps on merger news
• Airbnb predicts huge rebound, ASX travel shares in the hot seat

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Galaxy Resources Limited, Newcrest Mining Limited, Orocobre Limited, OZ Minerals Limited, and Sandfire Resources Ltd. Connect with me on Twitter @brenlau.

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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Bank of America (NYSE: BAC) has been slowly accumulating Zip Co Ltd (ASX: Z1P) shares since 31 December 2020.

On Monday, Zip announced the new substantial holder, which has now acquired a significant 34 million shares, or 6.15% of the company. 

Banking giant is now a Zip shareholder 

Bank of America is one of the world’s top ten largest banks, servicing individual consumers through to large corporations with a full range of banking, investment, asset management and other financial and risk management products and services. 

The bank boasts a market capitalisation of approximately US$336 billion (A$432 billion), or just shy of three times the value of Commonwealth Bank of Australia (ASX: CBA). 

Yesterday’s substantial shareholding hasn’t just come out of the blue. 

Zip engaged with Bank of America as its financial adviser and placement agent for its transformational QuadPay acquisition. The banking giant has also assisted Zip with its recent $400 million convertible bond raising. 

What does this mean for the Zip share price? 

Zip disclosed its mandatory substantial holding announcement yesterday as is required by the ASX. Investors appeared ambivalent to the news with the Zip share price falling 4.5% during Monday’s session. What the investment means for the Zip share price longer term remains to be seen.  

Disclosure of Zip’s new substantial shareholder might take some investors down memory lane – when Chinese internet giant Tencent bought 5% of Afterpay Ltd (ASX: APT) back in May 2020. This resulted in the Afterpay share price surging some 28% on the day of the announcement. 

The key difference here is that Afterpay formally acknowledged and welcomed the new shareholder, which it said provided significant learning opportunities for the BNPL provider: 

We feel very privileged to welcome Tencent as a substantial shareholder in our business. Being able to attract a strategic investor of this calibre is extremely rewarding and is a testament to our team and the strength of our differentiated business model.

Tencent’s investment provides us with the opportunity to learn from one of the world’s most successful digital platform businesses. To be able to tap into Tencent’s vast experience and network is valuable, as is the potential to collaborate in areas such as technology, geographic expansion and future payment options on the Afterpay platform.

To date, Afterpay has yet to announce any formal collaboration with Tencent. But the announcement clearly had investors excited for what could happen next. In contrast, Zip has updated the market on its latest substantial shareholder with little fanfare.  

However, Bank of America’s substantial shareholding could arguably further rumours of Zip’s potential secondary listing in the United States. 

More reading

• Why the Afterpay (ASX:APT) share price is in focus
• 5 things to watch on the ASX 200 on Tuesday
• Why GPT, Mayne Pharma, Talga, & Zip shares are tumbling lower
• Top broker picks ASX shares next in line for a profit upgrade
• Up 25% this month, is the Afterpay (ASX:APT) share price a buy?

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

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Look, I’m pretty sure I’ve ranted about this before.

It’s the old corporate noose, a la the necktie. Surely, SURELY, its time has come, gone and should never come again. It serves no purpose, other than to unduly restrict. It is a relic. A fossil. Long may it remain so, and even when science can bring back long-extinct animals, may it lie at rest.

Yes, I know it’s not dead for everyone. There are, it seems, two groups who can’t escape its Windsor-knotted grasp: those whose professions seem still to demand it, and those poor tortured souls who, almost as evidence that irrationality will be always with us, choose to wear it.

I was moved to think about ties again thanks to a weekend tweet by ex-Wallaby and current journo and author, Peter FitzSimons, with whom I stand ready to man the barricades against the tie’s resurgence.

This is a hill I’m willing to die on.

I mean, seriously, who, in this day and age would voluntarily wear a tie? I get that there still seems to be a societal urge for newsreaders, lawyers, and other ‘serious’ types to wear a tie to convey some sort of respectability.

But really? 

I mean, they do it because we expect it, and we expect it because they do it. If ties had never been invented, would we suddenly ignore those who fight our legal battles or give us an update on what’s happening in the world?

Would our pollies really be respected less if they rose at the dispatch box with their top buttons dangerously uncaptured by the respective buttonhole a mere few inches away?

No. A thousand times no.

(And if you’re someone who says ‘yes’ to that question, keep reading… I have a cure for you.)

Why am I ranting about ties?

Well, because they’re ties, and they deserve to be cast into the fiery pits of hell. But also, because when I read Fitz’s tweet in the middle of a bout of gardening yesterday, it played in my mind.

Somewhere, mid-transplant of a climbing snow pea, the thought occurred to me: don’t some of us invest the same way?

And lo, an article was born.

No seriously. Stick with me.

Investors are a funny lot.

If we’re buying stocks, we all want to beat the market (or get the best possible income). And yet, I can’t tell you how many times I’ve heard a reader or member say “But the shares are going down” or “But so and so says it’s a sell”.

The reverse is also true: “Why aren’t you guys buying? Such and such reckons it’s a buy”

Now, I understand the sentiment.

But think about the reality for a sec.

If you’re trying to beat the market you can’t do what everyone else is doing… or else you’ll get the same return they get.

To get superior returns, essentially by definition, you need to do something different to the rest of the market. So selling because everyone else is selling, or buying because everyone else is buying, is rarely a smart idea.

To be sure, you have to be both different and right. And that’s not easy. But being the same gives you precisely no chance of beating the market.

‘Blue chip‘ stocks are my favourite example of the genre. By the time a company is a ‘blue chip’, who doesn’t already know about it? Haven’t all the potential buyers already bought it? Isn’t the share price likely — on average — to be pretty efficiently set?

I think so.

‘Blue chips’ have essentially just won the popularity contest. Which, unfortunately, offers little to help us, when it comes to looking into the future. They are, taking me back to my theme, the neckties of the stock market. Little more than an outdated social construct.

Would our lawyers really be less educated or erudite in open-necked shirts? Would our newsreaders suddenly lose the ability to convey and interpret world events?

Or the reverse: would a poor, hapless, Motley investor, forced into antiquated neckwear, start picking better stocks, just because his shirt was affixed at the top button?

Of course not.

We follow convention because it’s simple. It’s easy. Humans developed social cues as an easy, instinctive way to signify position or role.  The same is true of uniforms — formal and otherwise.

The problem isn’t with neckties, or blue chips, themselves. It is with the significance we give them, justified or otherwise. Einstein in a t-shirt is Einstein. A fraudster in a tie is still a fraudster.

These days, there are only three events to which I wear a tie: weddings, funerals, and ANZAC Day services. Otherwise, I choose more comfortable, functional clothing.

The same should be true for investing. Don’t invest in companies because others tell you they fit in a particular group (‘Blue chip’, ‘FANG’, growth, value).

Don’t invest in companies because all the cool kids are, or because the share price is rising.

My erstwhile colleague and current Motley Fool Money podcast co-host Andrew Page hit the nail on the head, last week when he referenced one of his favourite news cartoons. There were arrows pointing in two different directions.

The one pointing left was labelled ‘Easy but Wrong’. The one pointing right? ‘Complex but Right’. And of course, in the cartoon, 99% of people take the road to the left.

As with all of these types of cartoons, it’s funny because it rings true. We do that in life, too often, too.

The moral of the story?

As with neckties, the ‘accepted wisdom’, ‘conventional wisdom’, and even ‘common sense’ in investing should be scrutinised carefully.

Sometimes, the crowd is right. Sometimes it’s wrong.

But don’t just accept what you’’re told. You have to do the work — or find someone you trust — to work out the difference.

More reading

• Why Tesla stock dropped on Monday
• Why the Afterpay (ASX:APT) share price is in focus
• Top broker tips Iluka (ASX:ILU) share price to keep on rising
• Could Airbnb’s trademark dispute threaten the Airtasker (ASX:ART) share price?
• LIVE COVERAGE: ASX to fall; Afterpay eyes US listing as Q3 sales rise 104%

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What Happened

Shares of Tesla (NASDAQ: TSLA) were hit hard on Monday. As of 10:30 a.m. EDT, the stock was down 5.3%.

The growth stock’s decline is likely due to two primary factors, including a car crash over the weekend involving a Tesla and a generally bearish day in the overall stock market — particularly for growth stocks.

So what

Two men died in a car crash involving a Tesla this weekend. There was no one in the driver’s seat, according to Mark Herman, Harris County, Texas, Precinct 4 Constable. One person was believed to be in the front passenger’s seat and the other was sitting in the back of the vehicle, Herman told The Wall Street Journal. The investigation of the car crash is not complete.

Tesla’s driver-assist Autopilot, which reportedly may have been involved in the crash, is meant to be used with someone ready to take over the vehicle. Though the automaker intends to eventually release a full self-driving ability for its cars, it hasn’t done so yet.

Also weighing on Tesla stock in Monday is a bearish day in the overall market. The Nasdaq Composite, for instance, is down almost 1% at the time of this writing.

Now what

Next week, investors will get insight into Tesla’s recent business performance. The electric car maker reports earnings for its first quarter of 2021 after market close on Monday, April 26.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Tesla settles lawsuit with ex-employee over autopilot source code
• Could Tesla’s electric vehicle deliveries soar 85% this year?
• Top fundie picks this ASX 200 resource share for the EV revolution
• Why Tesla stock soared higher on Tuesday
• The stock that I’d hold for the next 5 years: fundie

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Afterpay Ltd (ASX: APT) share price is in focus this morning after the buy now, pay later (BNPL) leader’s latest quarterly results.

Why is the Afterpay share price in focus?

This morning, the company reported “strong operating performance” for the period ended 31 March 2021 (Q3 2021). Performance was strong across all regions with underlying sales up 104% on the prior corresponding period (pcp).

On a constant currency basis, Afterpay reported sales up 123% on Q3 2020. That was helped by strong performance in both the United States and the United Kingdom. Sales in the former jumped 2,211% higher on the pcp with UK sales up 277%.

Notably, North America is now the largest contributor to underlying sales. The key business segment also outperformed the “seasonally strong” Q2 2021 results on a local currency basis. The Afterpay share price will certainly be one to watch this morning as investors take in the latest update.

Afterpay reported active customer numbers up 75% to 14.6 million, up from 8.4 million just one year ago. North America and the UK now boast 9.3 million and 1.8 million active customers, respectively.

The Afterpay share price has climbed 6.1% higher in 2021 compared to a 5.7% gain for the S&P/ASX 200 Index (ASX: XJO). However, on a 12-month basis, the BNPL share is up a whopping 335.2% to $126.20 per share.

What else did Afterpay report?

Afterpay reported strong customer acquisition momentum throughout April, up 6% in daily average new customers in the month to date. The March AfterPay Day sale was also a hit. The BNPL group said that event drove a 40% increase in new, active global customers and generated ~6 million referrals to merchants.

The European expansion is also continuing following the group’s Pagantis acquisition and Clearpay launch. That has seen merchants with over $1.5 billion in sales live or in the process of going live across Europe including Spain, France and Italy.

Importantly, Afterpay said gross losses continued to remain below historical rates in all operating regions. It was a similar story for net transaction losses which remain similarly low.

Afterpay to list in the US?

Afterpay also advised it is exploring options for a potential US listing. The company is working with external advisors to explore options given its projected growth. Afterpay intends to remain Australia-headquartered despite its global growth plans.

The Afterpay share price will be one to watch this morning as investors take in the latest numbers and global growth plans.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Up 25% this month, is the Afterpay (ASX:APT) share price a buy?
• Commonwealth Bank (ASX:CBA) CEO hits out at Afterpay and BNPL providers
• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• 3 of the best ASX shares to buy this month

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Iluka Resources Limited (ASX: ILU) share price has been a positive performer in 2021.

Since the start of the year, the mineral sands producer’s shares have stormed 12% higher.

This means the Iluka share price is now up almost 50% over the last six months.

Can the Iluka share price keep going?

According to a note out of Goldman Sachs this morning, its analysts believe the Iluka share price can keep rising.

The broker has put a buy rating and $8.30 price target on the company’s shares. Based on the current Iluka share price, this represents potential upside of almost 13% over the next 12 months.

And if you factor in the 2.8% dividend yield that Goldman is forecasting, this potential return stretches beyond 15%.

Why is Goldman Sachs positive on Iluka?

Goldman named three key reasons why it was positive on the Iluka share price. It explained:

(1) Compelling Mineral Sands and Rare Earth growth potential: ILU’s zircon & TiO2 sales to recover +20% in 2021 with improving global demand for ceramics and pigment. We are positive on ILU’s project pipeline and forecast c. 100% production growth in mineral sands, 15ktpa of Rare Earths by 2025/2026 and >50% increase in EBITDA.”

(2) Zircon market to enter a deficit in 2021: The 1.05Mt global zircon market will enter a deficit in 2021 on our estimates, driven by a >10% fall in global supply on mine depletion and production cuts. We expect zircon prices to rise in 2021, with ILU already flagging a US$70/t increase in price from 1 April, and we see increased likelihood of another price increase mid-year.

(3) Attractive valuation: ILU is trading at c. 0.9x NAV (A$7.96/sh), is net cash, and can fund its growth pipeline, in our view.

All in all, this could make it worth considering if you’re looking for exposure to the resources sector.

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Motley Fool contributor James Mickleboro 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.

The post Top broker tips Iluka (ASX:ILU) share price to keep on rising appeared first on The Motley Fool Australia.

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