ASX 200 mining shares including BHP Group Ltd (ASX: BHP) are tumbling on Tuesday after Rio Tinto Ltd (ASX: RIO) released second-quarter results that fell short of some consensus expectations.

Investors appear to feel that Rio’s report does not bode well for other ASX 200 mining shares.

The S&P/ASX 200 Materials Index (ASX: XMJ) is the worst performer of the day so far, down 1.12%.

Meantime, the S&P/ASX 200 Index (ASX: XJO) is down 0.13% today.

What’s happening with the ASX 200 mining shares today?

At the time of writing:

• The Rio Tinto share price is down 2.15% to $117.26
• The BHP share price is down 1.63% to $42.96
• The Fortescue Ltd (ASX: FMG) share price is down 0.27% to $22.42
• The Champion Iron Ltd (ASX: CIA) share price is down 2.16% to $6.33

What did Rio Tinto report today?

Rio Tinto released its 2Q FY24 update before the market open on Tuesday.

As my colleague James covered earlier, some of Rio’s results fell short of consensus expectations. This has led to a fall in the share price of the ASX 200 mining share.

Rio Tinto reported iron ore production of 79.5Mt in 2Q FY24, up 2% on 1Q FY24 and down 2% on 2Q FY23. This took 1H FY24 production to 157.4Mt, down 2% on 1H FY23.

Iron ore shipments in 2Q FY24 totalled 80.3Mt, up 3% on 1Q FY24 and up 2% on 2Q FY23. This took 1H FY24 shipments to 158.3Mt, representing a 2% decline on 1H FY23.

Consensus expectations among analysts had been 82Mt in shipments for 2Q FY24.

The ASX 200 mining major explained that a train collision in mid-May impacted production and shipments.

Aluminium production was flat at 824kt over 2Q FY24 compared to 1Q FY24 and up 1% compared to 2Q FY23. This took production for 1H FY24 to 1,650kt, up 3% on 1H FY23.

Copper production rose 10% in the second quarter to 171kt and increased 13% over 1H FY24 to 327kt. Consensus estimates were 175kt for 2Q FY24.

Falling iron ore price weighs on ASX 200 miners in 2024

The iron ore price has fallen dramatically in 2024 due to concerns over the Chinese economy.

At the beginning of the year, the iron ore price was about US$144 per tonne. Today, it’s US$109.58.

As a result, ASX 200 mining share prices have weakened in the year to date.

Analysts at Trading Economists said the 62% fe iron ore price held steady overnight as investors considered the latest economic data from China.

According to Trading Economics:

Data showed that China’s economy grew less than expected in the second quarter amid a persistent property downturn, weak domestic demand and rising trade tensions with the West.

Investors now await the outcome of a key political meeting in Beijing this week where traders are hoping for further stimulus to support the economy.

Westpac Banking Corp (ASX: WBC) forecasts the iron ore price will weaken further in 2024 and 2025.

Rio shares are down 14%, and BHP shares are down 15% year to date. Fortescue shares have lost 23.5%, and ASX 200 mining junior Champion Iron has lost 26.5%.

The post Why are BHP and other ASX 200 mining shares getting hammered on Tuesday? appeared first on The Motley Fool Australia.

More reading

• Why Champion Iron, Core Lithium, Encounter Resources, and Rio Tinto shares are dropping
• Rio Tinto shares fall on soft second quarter update
• 5 things to watch on the ASX 200 on Tuesday
• Leading brokers name 3 ASX shares to buy today
• BHP share price marching higher amid legal cost sharing agreement with Vale

Motley Fool contributor Bronwyn Allen has positions in BHP Group. 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 Scott Phillips.

The Guzman Y Gomez Ltd (ASX: GYG) share price has seen plenty of volatility in its early listed life. It’s up 21% from the initial public offering (IPO) price but down 11% from the first-day-of-trading price of $30, as shown on the chart below.

With such a volatile stock, it’s hard to say where the valuation is going to go next.

Some experts think the GYG share price is going to sink while others see a long-term opportunity. One of Australia’s leading broker has just put a very optimistic price target on the Mexican food business.

Bullish price target on the Guzman y Gomez share price

According to reporting by The Australian, the broker Barrenjoey has initiated its coverage on GYG shares with a price target of $33.

A price target is where the broker thinks the share price is going to go over the next 12 months. Of course, these price targets are just guesses – no one actually knows where share prices are going in a year.

If the Guzman y Gomez share price increased to $33, it’d represent an increase of approximately 24% over the next 12 months.

Of course, Barrenjoey has a close connection with GYG. Barrenjoey acted as a joint lead manager, bookrunner, and underwriter during the IPO process. The broker also owns around 10% of Guzman y Gomez, so it would benefit substantially if the GYG share price rose to $33.

However, as I mentioned, not every expert is positive on the company.

Sell call on GYG stock

Writing on The Bull, Jabin Hallihan from Auburn Capital called the Mexican food ASX share a sell.

He noted that the business has done well for IPO investors, but Hallihan suggested “investors may want to consider trimming their positions to pocket some profits”.

The Auburn Capital investment team likes the business but suggests that the reporting season of August 2024 “will more than likely highlight a challenging year ahead for restaurants and discretionary retailers.”

In the Guzman y Gomez prospectus, it disclosed it’s expecting to report FY24 revenue of $339.7 million (up 31%), $25 million of earnings before interest, tax, depreciation and amortisation (EBITDA) and a net loss after tax of $16.2 million.

In FY25, the company projects revenue of $428.2 million (up 26%), EBITDA of $59.9 million (up 136%), and a net profit of $6 million (up $22.2 million).

The post Top broker slaps $33 price target on Guzman y Gomez (GYG) shares appeared first on The Motley Fool Australia.

More reading

• ASX 200 re-writes history. Which companies are leading the charge?
• Here’s what ASX brokers are saying about Guzman y Gomez shares right now
• 2 ASX shares I’d give a wide berth to in today’s stock market
• 5 reasons I’d throw Guzman y Gomez shares in the bin like a bad burrito
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez. 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 Scott Phillips.

The National Australia Bank Ltd (ASX: NAB) share price advanced 1.15% in early trading on Tuesday to reach a nine-year high of $37.68 apiece.

Several other ASX 200 bank shares are also resetting price records today. Meantime, the S&P/ASX 200 Index (ASX: XJO) is down 0.14% to 8,006.7 points at the time of writing.

Why did the NAB share price just touch a 9-year high?

The ASX S&P/ASX 200 Financials Index (ASX: XFJ) is one of the strongest performers today, up 0.39% behind the S&P/ASX 200 Communication Index (ASX: XTJ) at 0.44%.

There is no price-sensitive news from NAB to explain its share price rise today. The Big Four bank has only released a daily update on its share buyback program

The bank advised the on-market purchase of 507,590 NAB shares yesterday. This is part of a larger program that commenced in August 2023, through which the bank has bought back almost 52 million shares.

The buyback program is due to end on 1 May 2025.

As the chart below shows, all ASX 200 bank shares, bar Bank of Queensland Ltd (ASX: BOQ), have been on a sustained run since November 2023, when speculation of interest rate cuts began.

Last Friday, Australia’s biggest bank, Commonwealth Bank of Australia (ASX: CBA), overtook mining behemoth BHP Group Ltd (ASX: BHP) to become the biggest ASX 200 company by market capitalisation.

Despite the NAB share price trading at elevated levels, several executives have added to their personal holdings in recent months.

Non-executive director Sarah Carolyn Kay was the most recent purchaser among NAB board members.

Kay bought 2,000 NAB shares on-market on 3 July for an implied average share price of $35.44.

Can the exuberance over ASX 200 bank shares last?

There are some mixed views on this. UBS reckons ASX 200 bank shares ‘don’t appear overly expensive‘ compared to global peers, whereas Goldman Sachs views them as the most expensive in the world.

Goldman Sachs said ASX 200 bank shares valuations are “skewed to the downside” from here. The broker says there is an expanding valuations discrepancy despite weaker relative profitability.

Philip King, CIO at Regal Funds Management, says Aussie banks are being “attacked from all angles” by competitors such as buy now, pay later operators, non-bank lenders, and private credit.

Martin Conlon from Schroders says the banks’ profits will be “flat at best” unless they can reduce costs.

What’s ahead for the NAB share price in FY25?

While UBS expects NAB to grow its profits in FY24 and FY25, the broker has a sell rating on the shares. The NAB share price is now trading well beyond the broker’s 12-month price target of $30.

Goldman Sachs has a neutral rating on NAB with a 12-month share price target of $34.04.

Earlier this month, NAB paid an interim dividend of 84 cents per share to shareholders.

My colleague Tristan recently reported on the FY25 outlook for NAB.

The post NAB share price hits 9-year high amid yet another strong day for ASX 200 banks appeared first on The Motley Fool Australia.

More reading

• Westpac and three other ASX 200 bank shares smashing new multi-year highs today
• Prepare for earnings! What ASX bank share buyers can learn from Wells Fargo results?
• It’s official, Aussies are getting richer! Here’s how
• Top 4 reasons why more Aussies are managing their own superannuation
• Why mum and dad investors aren’t buying ASX bank shares like they used to

Motley Fool contributor Bronwyn Allen has positions in Anz Group, BHP Group, Commonwealth Bank Of Australia, and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is out of form on Tuesday. In afternoon trade, the benchmark index is down 0.25% to 7,998.8 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price is down 2% to $6.33. This morning, this Canadian iron ore miner announced a gradual return of its workforce to its Bloom Lake mine following a preventive evacuation and temporary shutdown of operations in response to nearby forest fires. However, it also advised that the timing and resumption of full operational activities remain subject to the availability of railway services. Management continues to collaborate with local authorities and the railway operator to expedite a return to normal operations, while prioritising the safety of its employees and the community.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 4% to 11.5 cents. This is despite there being no news out of the lithium miner today. However, it is worth noting that its shares have been on fire in recent sessions. This could mean that some investors are taking some profit off the table on Tuesday after a weak night for lithium stocks on Wall Street. Even after this decline, Core Lithium’s shares are up 25% since this time last week. Though, it is worth remembering that they remain down over 85% on a 12-month basis.

Encounter Resources Ltd (ASX: ENR)

The Encounter Resources share price is down 13% to 72 cents. This follows the release of initial assays from first pass, wide-spaced aircore drilling at the Green target of the Aileron project. While the drilling has mapped out carbonatite hosted niobium-REE mineralisation over 1.6km of strike (which remains open), it seems that some investors were betting on stronger results. Nevertheless, its executive chairman, Will Robinson, was pleased. He said: “Broad spaced aircore drilling is achieving what we had hoped by rapidly identifying and mapping out near surface mineralised carbonatites in the West Arunta. The mineralised trend at Green broadly follows a curved, magnetic anomaly extending to the north-east from WA1’s Luni discovery and wraps around into the Stromness fault.”

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is down 2.5% to $117.09. Investors have been selling the mining giant’s shares after it fell short of expectations during the second quarter. The consensus estimate for iron ore shipments was 82Mt, but Rio Tinto reported shipments of 80.3Mt. It was the same for copper production, which came in at 171kt compared to the consensus estimate of 175kt. Management now expects to hit the low end of its copper guidance for the full year.

The post Why Champion Iron, Core Lithium, Encounter Resources, and Rio Tinto shares are dropping appeared first on The Motley Fool Australia.

More reading

• Rio Tinto shares fall on soft second quarter update
• Here’s the lithium price forecast through to 2027
• 5 things to watch on the ASX 200 on Tuesday
• Why Atturra, Bravura, Core Lithium, and Opthea shares are racing higher today
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s looking like today’s trading is off to a shaky start. After hitting a new record high yesterday and climbing above 8,000 points for the first time ever, the S&P/ASX 200 Index (ASX: XJO) is taking a breather today. But let’s talk about four ASX 200 bank shares, including Westpac Banking Corp (ASX: WBC), that have still smashed out new multi-year highs.

At the time of writing, the ASX 200 is reversing some of yesterday’s gains and is down around 0.08% to just over 8,010 points.

So what’s going on with the ASX banks this Tuesday?

Well, as we just mentioned, there’s been a cavalcade of new multi-year highs from no fewer than four ASX banks.

First up, let’s talk about Westpac shares.

Westpac and three other ASX bank shares at new multi-year highs

At the time of writing, Westpac shares are up a far more confident 0.43% at $28.23 each. But earlier this morning, we saw those same shares rise up to $28.26 each. Not only is that a new 52-week high for Westpac, but it is also the highest that this ASX 200 bank has traded at in the post-COVID era.

To find the last time Westpac asked this kind of price, you’d have to go all the way back to October 2019.

Things are looking even brighter for another big four bank though – National Australia Bank Ltd (ASX: NAB). NAB shares are presently up a chunky 1.02% at $37.63 each. That’s after this bank climbed up as high as $37.68 a share earlier in today’s session.

Again, that is a new 52-week high for NAB. But it is also a multi-year high. You’d have to go all the way back to April 2015 to find the last time NAB shares were leading with those kinds of figures.

Over at ANZ Group Holdings Ltd (ASX: ANZ), things aren’t quite as euphoric. But ANZ has still clocked a new high today. This bank is currently up a solid 0.42% at $29.96 a share. That’s after hitting a new high of $29.98 this morning. It’s also the highest level at which ANZ shares have traded since May of 2017. So another new multi-year record here.

Finally, you might assume our last bank share at a new high today would be Commonwealth Bank of Australia (ASX: CBA). CBA is no stranger to new highs lately, and it is the only big four bank we haven’t mentioned yet. But CBA hasn’t hit any new highs today. It is currently up a decent 0.17% at $132.92 after going as high as $133.08 this morning. But that wasn’t enough to break yesterday’s new record of $133.30 a share.

No, our last ASX bank share to discuss this Tuesday is Bendigo and Adelaide Bank Ltd (ASX: BEN).

Bendigo Bank is enjoying a lift similar to that of NAB right now. This bank is presently up a healthy 1.18% at $11.97 a share after rising as high as $11.98 in earlier trading. You guessed it, that’s a new 52-week high for this bank stock. But it is also the highest we’ve seen Bendigo Bank since February 2017.

Why are these stocks at new 52-week highs today?

There are no apparent market catalysts today that could easily explain the successful performance of ASX bank shares, especially these four stocks.

Perhaps it just comes down to the expectation that interest rates are going to fall this year. Last week, we discussed the latest inflation figures out of the United States. American inflation came in much cooler than expected over the month of June, dropping to an annualised 3% – the lowest level in three years.

That bodes extremely well for US interest rates. And If US rates drop, it could mean that our own Reserve Bank of Australia (RBA) might follow suit. Of course, that’s just speculation. But it could explain why investors are so in love with the ASX banks today. Let’s see what the rest of the week brings.

The post Westpac and three other ASX 200 bank shares smashing new multi-year highs today appeared first on The Motley Fool Australia.

More reading

• NAB share price hits 9-year high amid yet another strong day for ASX 200 banks
• Prepare for earnings! What ASX bank share buyers can learn from Wells Fargo results?
• It’s official, Aussies are getting richer! Here’s how
• Top 10 most traded ASX shares and US stocks in June
• Top 4 reasons why more Aussies are managing their own superannuation

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. 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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has run out of steam and is on course to record a decline. At the time of writing, the benchmark index is down 0.2% to 8,002.9 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is up 5% to $1.70. Investors have been buying this defence and space company’s shares after it announced an update on its first half performance. EOS achieved unaudited first half revenue of approximately $142.6 million. This represents an increase of 92% on the $74.3 million that it recorded in the prior corresponding period. Management advised that this was driven by growth across all businesses. This includes the impact of accelerating production and delivery of remote weapons systems under an existing contract with a customer in the Middle East, growth in the EM Solutions business, and growth in the Space Technologies business.

Hub24 Ltd (ASX: HUB)

The Hub24 share price is up 1.5% to $47.06. This morning, this investment platform provider released its fourth quarter update and revealed further strong growth. Hub24 reported that its platform funds under administration (FUA) increased to $84.4 billion during the fourth quarter. This represents a 6% quarter on quarter increase and a 35% improvement on the prior corresponding period. This reflects record quarterly net inflows of $5 billion, which was up 138% on the prior corresponding period. For the 12 months, the company also reported a record year of net inflows. They came in at $15.8 billion, which is up 62% on the prior corresponding period.

Integrated Research Limited (ASX: IRI)

The Integrated Research share price is up 12% to 95 cents. This has been driven by the release of the performance management solutions provider’s trading update this morning. It revealed a strong rebound in total contract value (TCV), statutory revenue, and EBITDA. The latter is now expected to be at the upper end of its previous guidance. Management believes the result provides a platform for a strategic shift to product-led growth. It also announced that its CEO, John Ruthven, will be stepping down. The company felt that the “timing is right for new leadership and CEO transition.”

Kingsgate Consolidated Limited (ASX: KCN)

The Kingsgate share price is up almost 2% to $1.69. This morning, this gold miner announced that it has entered into definitive loan documentation for a US$35 million term facility with Nebari Gold Fund and Nebari Natural Resources Credit Fund. The funds will be available for drawdown following satisfaction of conditions precedent that are standard for a facility of this nature. Management notes that the funding will enable it to consolidate its existing debt, repay preference shareholder loans, ensure timely delivery of new mining equipment, and expand the aggressive near mine and regional exploration programs.

The post Why EOS, Hub24, Integrated Research, and Kingsgate shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• Guess which ASX defence stock is rocketing 10% today (Hint: not DroneShield!)
• Up 80% in a year, why is this ASX 200 stock hitting a record high today?
• Why Immutep, Kingsgate, Netwealth, and Ora Banda shares are storming higher
• Why Hub24, Netwealth, Pantoro, and WA1 shares are falling today
• Shares vs. property: Which stocks and suburbs delivered the best growth in FY24?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems and Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.