The S&P/ASX 200 Index (ASX: XJO) was on form again last week and stormed to a 13-month high. The benchmark index rose 1% or 68.3 points to end the period at 7,063.5 points.

Unfortunately, not all shares were able to climb higher with the market. Here’s why these were the worst performing ASX 200 shares last week:

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven share price was the worst performer on the ASX 200 last week with a 17.7% decline. Investors were selling the coal miner’s shares after the release of a production and guidance update. That update reveals that the company’s production has been impacted by poor weather conditions and geological challenges. As a result, Whitehaven downgraded its FY 2021 managed ROM production at the Narrabri mine. Rather than its previous guidance of 5.3Mt to 5.5Mt, the company now expects production of 4.5Mt to 4.9Mt.

Regis Resources Limited (ASX: RRL)

The Regis Resources share price wasn’t too far behind with a disappointing 14.9% decline over the five days. The gold miner’s shares came under pressure after announcing an agreement to acquire a 30% interest in the Tropicana Gold Project for $903 million from IGO Ltd (ASX: IGO). To fund the acquisition, Regis raised $494 million from institutional investors at a 14.8% discount of $2.70 per share. It will now seek to raise a further $156 million via the fully underwritten retail component of the entitlement offer. The market doesn’t appear convinced with the acquisition management labelled as “transformational”.

Origin Energy Ltd (ASX: ORG)

The Origin share price was a poor performer and dropped 9.7% last week. The majority of this decline came at the end of the week when the energy company downgraded its earnings guidance for FY 2021. Origin was forced to make the downgrade due to an adverse and unexpected outcome on a domestic gas contract price review and continued headwinds in energy markets’ operating conditions. The company is now expecting its energy markets division to post a 30% to 35% decline in operating earnings in FY 2021.

TPG Telecom Ltd (ASX: TPG)

The TPG Telecom share price continued its slide and sank 5.7% lower last week. The telco’s shares have been on a downward trajectory ever since the surprise exit of its founder and chairman, David Teoh, last month. In addition to this, the improving outlook for rival Telstra Corporation Ltd (ASX: TLS) appears to have led to many investors choosing its shares ahead of TPG Telecom.

More reading

• This underperforming ASX large cap is sitting on a ~10% dividend yield
• Housing prices outpace the Commonwealth Bank (ASX:CBA) share price
• ASX 200 edges higher, Origin crunched, Mineral Resources falls
• Why these 3 ASX 200 gold shares are racing higher today
• Why Mineral Resources, Origin, Strike, Whitehaven shares are sinking

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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After 20 years, the War in Afghanistan is coming to an end. US President Joe Biden announced by 11 September all US troops will leave the central Asian country, the date marking the 20^th anniversary of the Al-Qaeda terror attacks, which were the catalyst for the war.

“It is time to end America’s longest war,” President Biden said in a televised address from The White House.

Former President Donald Trump previously declared all US troops would leave the country by 1 May, therefore Mr Biden’s announcement was both delaying the withdrawal while also confirming it.

NATO commanders announced they would withdraw troops under their control from the war-torn nation by 11 September, in coordination with American forces. Australian Prime Minister Scott Morrison joined other leaders in saying Australia would also withdraw its remaining forces from the country.

39,000 Australian soldiers deployed to Afghanistan. 41 lost their lives in the battle. A report by Major General Justice Paul Brereton alleged Australian Special Forces committed war crimes while serving in Afghanistan.

In commemoration of today’s news, let’s look at three ASX-listed defence contractors, what they specialise in, their finances, and share prices.

Codan Limited (ASX: CDA)

Codan designs, supplies, and manufactures mining and communications equipment. It also supplies metal detection services. While focused mostly on the mining industry, it also supplies communication equipment to ‘Five-Eyes’ militaries and intelligence agencies.

In February, the company acquired US based Domo Tactical Communications (DTC) for at least $114 million. DTC provided communications equipment of at least 20 US government agencies. DTC’s products enable wireless transmission of data for its customers, including border control, first responders, broadcasters, military, and special forces.

For the six months ending 31 December 2020, the company recorded $194 million of revenue – up 14% on the prior corresponding period (pcp). Net profit was up 36% on the pcp to equal $41.3 million.

The company paid an interim dividend of 10.5 cents per share, fully franked, at the time.

Over the past 12 months, the Codan share price has increased by 230%.

Codan has a market capitalisation of $3.3 billion.

Austal Limited (ASX: ASB)

Austal is an Australian shipbuilder that designs and constructs commercial and defence vessels across the globe. The company considers many of the world’s leading ferry operators, navies and defence forces as customers, including the US Navy and Australian Border Force. Along with shipbuilding operations, Austal also provides vessel maintenance and management services, as well as vessel command and control systems.

Two weeks ago, the ship builder announced construction had commenced on a ship building facility in Alabama, USA. Ships built at the site will supply both the US Navy and the US Coast Guard.

A month ago, Austal delivered its ninth patrol boat to the Australian Department of Defence. The ship was gifted to the Papua New Guinean and navy and subsequently named ‘HMPNGS Rochus Lokinap.’ Two ships total have been shipped to PNG. Austal is contracted to deliver 21 ships to total to the Australian Navy. Some of these will be gifted to other Pacific nations. The government tender is worth $335 million and expires in 2023.

In its FY21 half year report, the company saw net profits grow 29% on the pcp to $52.4 million. Group revenue totalled $840.3 million in the period. While this reflected a 19% fall from the prior corresponding period, the company noted revenue was impacted by a number of factors. These included unfavourable currency exchange movements, a reduction in United States commercial shipbuilding and vessel support activities, as well as longer than expected commissioning of Australian ships.

The company paid an unfranked interim dividend of 4 cents per share.

The Austal share price increased 0.39% today to finish at $2.56. Over the past year investors have seen a negative 17% return on investment (ROI). Austal has a market cap of $915.1 million.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic is an Australian technology company. It develops and produces electro-optic technologies for the aerospace market. The group’s reportable segments are Communication, Defence and Space. It generates maximum revenue from the Defence segment.

The Defence portion of the business develops, manufactures, and markets advanced fire control, surveillance, and weapon systems to approved military customers. Geographically, it derives a majority of revenue from North America.

On 9 April, the company declared it had refined laser technology to track space debris and move it at faster speeds and lower altitudes than ever. In its statement at the time, the company noted approximately US$700 billion worth of global space infrastructure currently delivers essential services globally. These services, it said, are at risk from space debris ranging in size from rockets the size of buses, to flakes of paint measuring only 5mm. Even small debris can cause enormous damage because of how fast it travels in space.

For its final year results for FY20, the company declared a loss of $25.6 million. Revenue, however, was up 9% to equal $180 million. Investment into inventory saw a negative operating cash flow of $109 million. The report made clear that defence accounts for 80% of total revenue for the business. Its aforementioned space system is growing, however – up 27% on the pcp.

The Electro Optics share price finished the day up 1.50% to end at $5.41. Over the past 12 months, it has lifted by just over 13%. It has a market cap of $808.1 million.

More reading

• How to turn $20,000 into $240,000 in 10 years with ASX shares
• Why Codan, Flight Centre, Magellan, & Woolworths are sinking
• Why the Electro Optic Systems (ASX:EOS) share price is charging 5% higher
• Bullish ASX 200 shares breaking into 52-week highs 
• Acquisitions and spin-offs put these 3 ASX shares on brokers’ “buy” list

Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited and Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings 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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Looking for a growth share or two to buy this week? Then you might want to consider one of the ASX shares listed below.

Here’s why these might be among the best growth shares to buy right now:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is Altium. It is an award-winning printed circuit board (PCB) design software provider. It appears well-positioned for growth over the long term due to its leading position in a market exposed to the Internet of Things and artificial intelligence booms. The proliferation of electronic devices is expected to lead to increasing demand for its software over the next decade.

One leading broker that is positive on the company is UBS. It currently has a buy rating and $34.00 price target on its shares.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to buy is IDP Education. It is a provider of international student placement services and English language testing services. It was unsurprisingly hit hard by the pandemic but is recovery strongly. The company revealed that testing volumes reached pre-pandemic levels towards the end of the first half. Looking ahead, IDP Education has been tipped to win market share and resume its rapid growth once the crisis passes and trading conditions return to normal.

Morgan Stanley is positive on IDP Education’s long term outlook. As a result, the broker has an overweight rating and $30.00 price target on its shares.

Kogan.com Ltd (ASX: KGN)

A final ASX growth share to buy is Kogan. It is a rapidly growing ecommerce company which has been benefitting greatly from the shift to online shopping. Pleasingly, this trend is expected to continue over the long term, which should support its growth. In addition to this, Kogan has bolstered its growth potential through value accretive acquisitions. This includes the significant acquisition of online retailer Mighty Ape for $122 million.

Credit Suisse is a big fan of Kogan. Last month its analysts put an outperform rating and $21.08 price target on the company’s shares.

More reading

• The Monadelphous (ASX:MND) share price surges as Rio Tinto (ASX:RIO) overhang lifts
• Why Kogan (ASX:KGN) should be on your watchlist at this share price
• 3 top ASX shares to buy this week
• 2 outstanding ASX growth shares to buy now
• This could be boosting the Kogan (ASX:KGN) share price today

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 recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd and Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Vitalharvest Freehold Trust (ASX: VTH) share price has been on fire in 2021. Shares in the Aussie agricultural real estate investment trust (REIT) have surged 23% higher so far this year amid a takeover tug of war.

Investors will be keeping an eye on the REIT early next week. The Vitalharvest share price could be one to watch after the company shared news of an update on the takeover offer received from private equity group Roc Partners on 15 April 2021.

Why is the Vitalharvest share price worth watching?

Vitalharvest this morning provided an offer on the binding Roc proposal to acquire all units for $1.18 per share or $333.3 million. This is the fourth Roc proposal received and represents a superior offer to the fourth Macquarie Agricultural Funds Management Limited (MAFM) proposal received on 14 April 2021, according to the Vitalharvest Board.

Both the fourth Roc proposal and fourth MAFM proposal will permit the payment of 2.5 cents per unit interim distributed from rent received to 31 December 2020.

The Vitalharvest share price is worth watching as the takeover bid continues. Vitalharvest’s Board has notified MAFM that it has 5 business days to match. That means MAFM has until 22 April 2021 to provide a matching or superior proposal to the Fourth Roc Proposal.

The Vitalharvest share price is currently trading at $1.21 per share. That’s above the $1.18 per share fourth Roc proposal price but also reflects the 2.5 cents permitted distribution.

There may not be much movement in the agricultural REIT’s valuation until a response from MAFM is received. That could be either an update offer or withdrawal of interest.

If MAFM decides not to exercise its matching right, Vitalharvest intends to enter into the Roc Scheme of Implementation Deed.

Foolish takeaway

The Vitalharvest share price has been surging higher in 2021 as investors scramble to acquire the agricultural REIT. 

While the REIT’s unit price remained unchanged today, investors will be waiting for a response from MAFM ahead of the April 22 deadline.

More reading

• ASX 200 rises above 7,000, Resolute Mining soars, Galaxy jumps
• Why the Vitalharvest (ASX:VTH) share price is up 21% in 2021
• ASX 200 climbs 1%, Westpac rises, Western Areas jumps
• ASX 200 drops, Webjet reveals B2B plan, Cimic wins again

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 S&P/ASX 200 Index (ASX: XJO) is home to a good number of shares with true blue chip status. But given the many options that investors have, it can be hard to decide which ones to include in your portfolio.

In order to narrow things down, I have picked out two blue chip ASX 200 shares which are highly rated right now. They are as follows:

Cochlear Limited (ASX: COH)

The first blue chip ASX 200 share to look at is Cochlear. It is a global leader in the development, manufacture, and distribution of cochlear implantable devices for the hearing impaired.

Cochlear was impacted greatly by the pandemic, but has bounced back incredibly quickly. For example, in February the company released its half year results and revealed an underlying net profit of $125.3 million.

This was down only 4% in constant currency from its record first half profit in the prior corresponding period. That period was before anyone had even heard of COVID-19.

Positively, given favourable tailwinds such as ageing populations, Cochlear looks well-placed to resume its growth in the second half and throughout the 2020s. This could make it a great buy and hold option.

Macquarie is a fan of Cochlear. Its analysts have an outperform rating and $245.00 price target on its shares.

Sonic Healthcare Limited (ASX: SHL)

Another blue chip ASX 200 share to buy could be Sonic Healthcare. It is a leading healthcare provider with specialist operations in laboratory medicine, pathology, diagnostic imaging, radiology, general practice medicine, and corporate medical services.

Sonic has been a very strong performer in FY 2021. During the first half of FY 2021, the company delivered a 33% increase in revenue to $4.4 billion and a 166% jump in first half net profit to $678 million.

A key driver of this growth was COVID-19 testing services. In fact, Sonic revealed that by the end of December, it had performed more than 18 million COVID-19 PCR tests across ~60 Sonic laboratories globally.

Positively, the rest of the business has been recovering strongly from the pandemic. The company revealed that global base business revenue (ex-COVID testing) was down 1% versus the prior corresponding period. It is worth noting that the prior period was of course pre-pandemic.

Morgan Stanley is positive on the company. It currently has an overweight rating and $39.80 price target on its shares. It expects Sonic to benefit from ongoing COVID testing and a recovery in base business volumes.

More reading

• 2 high quality ASX dividend shares that smash term deposits
• 2 of the best ASX shares to buy now
• 2 high-growth ASX COVID-19 shares
• Aussie dollar tipped to weaken and this ASX share stands to gain the most
• 2 ASX 200 shares to buy for growth

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Sonic Healthcare 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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Treasure hunters seeking dividend gems might find this ASX share particularly enticing as it could be the last of the large caps with a gross yield that’s close to 10%.

The ASX share in question is the underperforming Aurizon Holdings Ltd (ASX: AZJ) share price. The rail operator has been under a cloud due to earnings worries.

But this is no dividend trap, at least not according to the analysts at Macquarie Group Ltd (ASX: MQG).

Aurizon’s dividend set to rise

If anything, the broker is forecasting Aurizon to lift dividends for the next three years, if not longer.

As it stands, the company is tipped to pay a 28 cents distribution in FY20, which will be 70% franked. This means the current Aurizon share price of $3.95 is sitting on a yield of 9.2% if franking is included!

The dividend increases to 29.2 cents in FY22 and 30.4 cents the year after, based on Macquarie’s projections.

The Aurizon share price is a rare find on the ASX

You would be hard pressed to find another large cap with a grossed-up yield that’s this close to double-digit. This is particularly so now that the Telstra Corporation Ltd (ASX: TLS) share price has rallied hard.

It’s the same story among the ASX big banks. These ASX shares, such as the Westpac Banking Corp (ASX: WBC) share price and National Australia Bank Ltd. (ASX: NAB) share price, have rebounded to multi-year highs.

That same can’t be said for the Aurizon share price. That slumped close to 11% over the past year when the S&P/ASX 200 Index (Index:^AXJO) surged by nearly 30%.

Coal drags on the Aurizon share price

Just as with climate change, you can blame coal for Aurizon’s misfortunes. The amount of the commodity that Aurizon had been hauling crashed due to bad weather and equipment failure.

It also doesn’t help that an increasing number of investors are turning their backs on ASX shares that are exposed to the environmentally unfriendly fuel.

However, Aurizon also hauls iron ore in Western Australia and is well placed to seek out opportunities to transport crops.

Opportunities for growth outside coal

“Export volumes remain strong with Esperance/Geraldton up ~20% on pcp ie 1mt for the quarter,” said Macquarie.

“AZJ highlighted they have started some haulage for CBH, and the opportunity is to tender for the haulage work commencing May 22 (Watco holds contract currently).

“CBH has ~$110m of locomotives and rolling stock, which is an opportunity for AZJ to expand the offering, leveraging the iron ore locomotives and maintenance facilities.”

Macquarie is recommending the Aurion share price as “outperform” with a 12-month price target of $4.40 a share.

More reading

• Housing prices outpace the Commonwealth Bank (ASX:CBA) share price
• ASX 200 edges higher, Origin crunched, Mineral Resources falls
• Why these 3 ASX 200 gold shares are racing higher today
• COVID recovery “far better than expected” says NAB (ASX:NAB) CEO
• The Monadelphous (ASX:MND) share price surges as Rio Tinto (ASX:RIO) overhang lifts

Motley Fool contributor Brendon Lau owns shares of National Australia Bank Limited, Telstra Limited, and Westpac Banking. Connect with me on Twitter @brenlau.

The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Aurizon Holdings 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 recent performance of Appen Ltd (ASX: APX) shares would likely be a tough pill for investors to swallow. The S&P/ASX 200 Index (ASX: XJO) tech company and go-to AI stock has slumped some 60% from its August 2020 highs of $43.66 following multiple weak earnings reports and business headwinds. 

An Appen share price comeback? 

Citi has made a bold call on Friday, rating the Appen share price as a buy with a $30.90 target price. This represents an upside of approximately 82% from its current level of $16.97. 

The upside and valuation re-rate comes after the recent capital raising by Appen peer, Scale AI. Citi believes that this is an overall positive for Appen, showing solid growth in the AI training data industry. 

What is Scale AI? 

Founded in 2016, Scale AI is a private, San Fransisco-based company that “accelerates the development of AI applications by helping machine learning teams generate high-quality ground truth data”.

To add a bit more context to exactly what Scale AI does, a self-driving car developer, for example, might have a significant amount of data collected from testing its autonomous vehicles. 

Scale AI could play a role in labelling the collected data images. In simple terms, this involves labelling what objects are appearing so the autonomous car can then learn how to safely maneuver on the roads. If a data labeller was to consistently label cars as people, then the vehicle might get into very confusing situations.

The company has an impressive client list with notable customers such as PayPal, SAP, General Motors Co, Nvidia Corp and Lyft. 

The recent US$325 million funding round for Scale AI now values the company at US$7.3 billion. Scale AI has said that it is currently on track to earn US$100 million in revenue within a 12 month period and that sales have doubled in the past year. 

What does this mean for Appen? 

Scale AI has a similar model to Appen in terms of its data labeling and training services. Arguably, the recent good news for Scale could be compared to Afterpay Ltd (ASX: APT) benefiting from a strong Zip Co Ltd (ASX: Z1P) quarterly result. 

However, Citi has called out increasing competition in the space given the number of competitors raising money. The broker believes Appen may need to step up its research and development (R&D) investment in order to remain competitive and grow market share. 

While Scale AI highlights its revenue doubling in the past year, Appen’s revenue had only increased 12% for the full year ended 31 December 2020. 

More reading

• Brokers name 3 ASX shares to buy now
• 2 highly rated ASX shares to buy now
• Is the Appen (ASX:APX) share price a cheap buy?
• 5 things to watch on the ASX 200 on Friday
• These oversold ASX tech shares are ripe for the picking

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 and recommends NVIDIA and PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and ZIPCOLTD FPO and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended NVIDIA and PayPal Holdings. 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 Commonwealth Bank of Australia (ASX: CBA) share price closed at $87.80 today, down 0.13%.

The S&P/ASX 200 Index (ASX: XJO), meanwhile, closed 0.07% higher as the index managed to maintain its afternoon rally.

Why CBA isn’t concerned about rising house prices

The Commonwealth Bank share price is up 5% so far this year. While that’s a solid result for the big four bank, a company with a market cap of $156 billion, Aussie home prices have risen even faster, up 6.2%.

Should we be concerned?

Not according to Commonwealth Bank CEO Matt Comyn.

Addressing the House of Representative economics committee in Canberra yesterday on the rapid increase in Australia’s home prices, Comyn said (quoted by the Australian Financial Review), “We are not overly concerned with what we are seeing at the moment in the context of broader financial stability.”

Comyn said rising home prices tie into the strength of Australia’s economic rebound, with the unemployment rate ticking down another 0.2% in March and GDP forecasts improving. He called the recovery in Australia’s labour market “miraculous”.

As the AFR reported:

CBA expected unemployment for the March quarter to come in at 5.7 per cent, just missing the actual result of 5.6 per cent. The bank expects unemployment to fall to 5 per cent by December 31, and to further decline to 4.7 per cent by the end of 2022.

As for dwelling prices, CBA has upped its forecast for 2021 from 8% growth to 10% for the full calendar year. “We expect house prices to continue to grow through this year and next, but not at the rapid levels we have seen in the first two months of the year.”

Comyn also highlighted the falling number of deferred loans on the bank’s books since the onset of the pandemic. He said that the 158,000 home loans CBA had deferred at the height of the crisis had now fallen to 3,000–4,000 deferred loans.

Commonwealth Bank share price snapshot

Though the average Australian house price may have outpaced the Commonwealth Bank share price so far in 2021, over the past 12 months that’s certainly not true.

CBA shares have lifted 43% over the past full year, compared to a gain of 29% on the ASX 200.

More reading

• ASX 200 edges higher, Origin crunched, Mineral Resources falls
• Why these 3 ASX 200 gold shares are racing higher today
• The Monadelphous (ASX:MND) share price surges as Rio Tinto (ASX:RIO) overhang lifts
• Why you should buy these 2 defensive ASX shares today
• Eagers Automotive (ASX:APE) share price edges higher on trading update

Motley Fool contributor Bernd Struben 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 S&P/ASX 200 Index (ASX: XJO) went up slightly by 0.07% to 7,064 points.

These are some of the highlights from the ASX today:

Origin Energy Ltd (ASX: ORG)

The Origin share price fell around 9% today after announcing its price review outcome and update on FY21 guidance.

The energy business has been engaged in a price review for gas purchased from Beach Energy Ltd’s (ASX: BPT) Otway Basin fields, which was referred to arbitration.

Origin said that the arbitrator has now issued a partial award and on the basis of that decision the new gas price is likely to be materially above Origin’s expectations and recent comparable wholesale contracts. The outcome is expected to result in an increase in Origin’s cost of supply of $30 million to $40 million for FY21, increasing further to $60 million to $80 million in FY22 consistent with an expected increase in volume.

The pricing outcome is binding over FY21 to FY23, with limited rights to appeal. The ASX 200 share will now assess the timing and extent to which this increased cost of supply can be mitigated.

Origin CEO Frank Calabria said:

We are disappointed in this decision which we believe is wrong, and entirely inconsistent with our prior experience in the gas market. This will result in a gas price that does not reflect market prices, and it is therefore a very poor outcome.

Origin has revised its energy markets underlying earnings before interest, tax, depreciation and amortisation (EBITDA) guidance for FY21 to be in a range of $940 million to $1.02 billion.

Mineral Resources Limited (ASX: MIN)

The ASX 200 mining company said that total mining production during the third quarter of FY21 was consistent with the second quarter and up more than 44% on the prior corresponding period. This was in line with mine plans.

Mineral Resources reported that its average realised iron ore price was US$144.8 per dry metric tonne (dmt), which was 5% higher than the previous quarter.

Iron ore shipments were 4.1 million wet metric tonnes (wmt), consistent with the second quarter of FY21 and up 51% compared to the prior corresponding period.

The mining business said that it has produced 10.1 million wmt but has shipped 8.5 million wmt. It has experienced haulage constraints caused by a shortage of truck drivers, resulting from the unplanned sudden state border closers, implemented following COVID-19 outbreaks around the country.

That shortage meant that, on average, hauling capacity of approximately 10,000 wmt per day was sitting idle that could have otherwise been used by Mineral Resources.

Management are not sure when these haulage issues will be resolved and so iron ore shipment guidance for FY21 is now expected to be in the 17.4 million wmt to 18 million wmt range.

The Mineral Resources share price dropped 5.3%. 

Monadelphous Group Limited (ASX: MND)

The Monadelphous share price was one of the best performers in the ASX 200 today, rising around 6%.

The engineering business announced a settlement of claim today.

In August 2020, Rio Tinto Limited (ASX: RIO) filed a writ of summons against a Monadelphous business regarding a fire at Rio Tinto’s iron ore processing facility at Cape Lambert, Western Australia, in January 2019.

Monadelphous announced that a confidential out-of-court settlement has been reached, with the settlement being covered by the proceeds of insurance. Both parties consider the matter closed.

The engineering company said it highly valued its long term business relationship with Rio Tinto and it’s pleased that this matter has been resolved amicably.

More reading

• Why these 3 ASX 200 gold shares are racing higher today
• Why Mineral Resources, Origin, Strike, Whitehaven shares are sinking
• The Monadelphous (ASX:MND) share price surges as Rio Tinto (ASX:RIO) overhang lifts
• Why you should buy these 2 defensive ASX shares today
• Why Eagers Auto, Mayne Pharma, Monadelphous, & Newcrest are pushing higher

Motley Fool contributor Tristan Harrison 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 Medusa Mining Limited (ASX: MML) share price is moving higher in late afternoon trade. This comes after the company announced its ‘Tigerway’ decline project is set to begin at the Co-O Gold Mine.

At Friday’s market close, the Australian-based gold producer’s shares are swapping hands for 85 cents, up 3.03%.

Co-O Gold Mine Decline Project Approved

Investors are pushing the Medusa share price higher on the back of the company’s latest positive developments.

According to its release, Medusa advised through its affiliate Philsaga Mining Corporation (PMC), it has signed a blasting contract with Mount Rock Powder Corporation (MRPC). The works carried out will be undertaken for the ‘Tigerway’ Decline Project at the Co-O Gold Mine.

MRPC is a leading Philippine underground mining and blast contractor, which has conducted services at the Co-O mine since 2008. Over the past decade, the group has completed more than 18,000 meters of underground mining, civil tunnel and decline projects.

Medusa noted that a comprehensive study was finalised in early 2020 to look at the long-term infrastructure of the site. It found that constructing a decline was the best option to attain the most efficient production when operating at deeper levels. While the project was formally approved in January 2020, the arrival of COVID-19 delayed selecting an Australian-based underground mining contractor. However, since the end of last year, the company moved to choosing a Philippines-based contractor, reducing the risk of operational restrictions and cost impacts.

Benefits of Co-O Gold Mine Decline

Building a decline at the Co-O mine is expected to provide a number of safety and operational benefits. This includes:

• More flexibility and capacity to extend underground mining infrastructure;
• Increased efficiency of installed shafts;
• Ability to increase mechanised mining techniques and increase productivity; and
• Better exploration flexibility from more optimal in-mine and near-mine exploration positions

Time and Cost of Project

Medusa stated that during the construction period, gold production will continue at the unaffected levels. The project plans to extend infrastructure below level 12 and onwards, remaining open at depth.

The total cost of the Decline project is estimated to be US$54 million. This comprises of US$43 million of box cut excavation and underground development, and US$11 million in mining infrastructure and equipment. The company will use its existing cash reserves and future operational cash flows to fund the project.

Medusa expects the construction period to be completed sometime within the next 3 years.

What did the managing director say?

Medusa managing director, Andrew Teo commented:

The Co-O Gold Mine has been in production for 13 years and has been a consistent producer which continues to replace reserves as the orebody extends at depth. While the hoisting and shaft infrastructure has served the mine well over its life to date, we believe this is an important investment in the future efficiency of the operation.

The decline will be constructed by a dedicated contract workforce and we do not expect this activity to have any impact on ongoing operations. Our strong financial position means the project will be funded from our existing cash balance and future cash flows while maintaining flexibility to consider future dividend payments, dependent on the performance of the operation and the prevailing gold price.

Medusa Mining share price snapshot

The Medusa Mining share price has jumped over 60% in the past year, before moving in circles since late September. The company’s shares are sitting just below 20% from its multi-year high of $1.065 reached mid-August 2020.

On valuation grounds, Medusa commands a market capitalisation of roughly $178.7 million.

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Motley Fool contributor Aaron Teboneras 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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