The Telstra Corporation Ltd (ASX: TLS) share price is trading 1.2% lower this morning after reports the company has been in talks with a private equity firm to expand overseas.

Telstra wants to connect with the world

Speculation is rife that Telstra is looking to expand its operations overseas. According to a report in The Sydney Morning Herald, Telstra has been in “advanced talks” with I Squared Capital and PCCW Global of Hong Kong to merge its international division with the company. The move is seen by some as clear intent of the former government entity’s plans to expand outside of Australia. PCCW is a subsidiary of Hong Kong Telecom.

According to the report, Telstra and I Square are planning on launching a joint bid for PCCW to then run the company as a joint venture. The reporting only confirms talks were held between Telstra and I Square as late as February this year. It is not clear if the talks are still ongoing. 

What else might be affecting the Telstra share price?

Last month, the company said it would be restructuring its operations into four entities. InfraCo Fixed would own and operate Telstra ducts, fibre, data centres, and exchanges. InfraCo Towers would own and operate its mobile tower assets and ServeCo would own the radio access network and spectrum assets. The first three assets would be held by a holding company owned by Telstra shareholders.

In the announcement, Telstra said its international business would become another subsidiary within the group. It will own and operate undersea cables as well as oversee overseas operations. The company also would be looking to sell off InfraCo sometime into the future.

The news at the time, unlike today, sent the Telstra share price flying.

Telstra share price snapshot

Over the last 12 months, the Telstra share price has increased a modest 8.9%. Only four days ago, the company’s share price hit an 8-month high of $3.48. Pre-COVID, the company was trading around the $3.80 mark.

Telstra has a market capitalisation of $40.8 billion.

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• 2 fantastic blue chip ASX shares to buy in April
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Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a subdued note. The benchmark index is down 0.2% to 7,043.3 points.

Here’s what has been happening on the market today:

Origin guidance downgrade

The Origin Energy Ltd (ASX: ORG) share price is sinking today after downgrading its earnings guidance for FY 2021. The energy company made the move due to an adverse and unexpected outcome on a domestic gas contract price review and continued headwinds in energy markets’ operating conditions. Origin now expects its energy markets division to post a 30% to 35% decline in operating earnings in FY 2021.

Gold miners upgraded

Gold miners Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) are charging higher today. This has been driven by a rise in the gold price and a positive broker note out of Goldman Sachs. In respect to the latter, this morning the broker upgraded Newcrest and Northern Star’s shares to buy ratings from neutral. It notes that their shares are trading at a deep discount to their net asset value in comparison to peers. The S&P/ASX All Ordinaries Gold index is up 3% at lunch. 

Mineral Resources update disappoints

The Mineral Resources Limited (ASX: MIN) share price is under pressure today following the release of a disappointing quarterly update. During the March quarter the company only managed to ship 4.1 million wet metric tonnes of iron ore. This was due to a shortage of truck drivers caused by coronavirus-related border closures. This compares to the average of approximately 4.8 million to 5.1 million wet metric tonnes per quarter required to achieve its guidance.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Beach Energy Ltd (ASX: BPT) share price with a 4.5% gain. This follows a rise in oil prices and a favourable decision relating to the Origin domestic gas contract price review. Conversely, the Origin share price is the worst performer today with a 6% decline following its guidance downgrade.

More reading

• Why Newcrest (ASX:NCM) and Northern Star (NST) shares are flying high today
• Mineral Resources (ASX:MIN) share price sinks on activities report
• Here’s why the Origin (ASX:ORG) share price is sinking 5% today
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises, Zip sinks, BOQ reports

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 RTG Mining Inc (ASX: RTG) share price is soaring today after the company shared a decision made by the Philippines Government.

The government’s decision has caused the RTG Mining share price to surge 11.76%, with shares in the company currently trading for 19 cents.

But why has a Philippines Government decision affected the RTG Mining share price? Let’s take a look.

New mining licences

RTG Mining shared today that Philippines leader President Duterte has lifted a 9-year ban on new mining licences in the country.

This means Mt. Labo Exploration and Development Corporation, of which RTG Mining owns 40%, can proceed with the development and operation of its Mabilo Project.

The Mabilo Project is a high-grade gold/copper magnetite skarn deposit. Its shallow deposit is amenable to low-cost, open-pit mining.

In its release, the miner stated the government expects new mining agreements will stimulate economic growth. Particularly, in remote and rural areas, such as the area in which the Mabilo Project is located.

Mabilo Project controversy

Through a series of interesting events, Mt. Labo owns 100% of the Mabilo Project.

In 2016, Mt. Labo terminated its joint venture agreement with Galeo Equipment Corporation. After this, legal proceedings began, questioning the legality of the agreement’s termination.

In 2020, a tribunal found in favour of Mt. Labo, confirming the joint venture agreement was validly terminated.

Mt. Labo’s interest in the Mabilo Project was then increased to 100% at no cost to the company. It was also awarded $33. 6 million in damages and costs.

RTG Mining share price snapshot

Today’s news will come as a much-needed boost to RTG Mining shareholders.

Even with today’s gains, the company’s share price is down 13.64% since the start of the year. Although, RTG shares are up by an impressive 217% over the last 12 months.

The company is dual-listed on both the ASX and the Toronto Stock Exchange. 

RTG Mining has a market capitalisation of around $108 million, with approximately 680 million shares outstanding.

More reading

• ASX 200 down 0.2%: Origin sinks on earnings downgrade, gold miners charge higher
• The Dicker Data (ASX:DDR) share price is eyeing a comeback in 2021
• Airtasker (ASX:ART) share price continues rollercoaster
• Why the Tilt Renewables (ASX:TLT) share price is in focus
• Brokers name 3 ASX shares to buy now

Motley Fool contributor Brooke Cooper 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 past few months have proved challenging for the Dicker Data Ltd (ASX: DDR) share price.

Its shares were up some 15% year-to-date after hitting a record high of $12.60 on 9 February. Rising bond yields in mid-February saw a broad selloff in tech shares and, with it, sent the Dicker Data share price some 20% lower in the coming weeks. 

The Dicker Data share price is attempting to return to positive territory, up almost 7% this week. 

Why the Dicker Data share price could be on watch in 2021 

Dicker Data represents a classic example of a falling or flattening share price while business fundamentals continue to improve. 

Dicker Data is an Australian hardware, software and cloud distributor with a valued partner base of over 6,000 resellers. The company distributes a wide portfolio of products from some of the world’s leading technology vendors including Cisco, Citrix, Dell Technologies, Hewlett Packard Enterprise, HP, Lenovo and Microsoft. 

In FY20, the company’s revenues increased 13.6% to $2 billion, while net profit after tax increased 5.3% to $57.2 million. Dicker Data has a strong history of steady or growing earnings, with a respective five year compound annual growth rate of 14.0% and 19.2% for revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA).

What’s in store for the Dicker Data share price in 2021? 

Dicker Data has highlighted the working from home movement as a key focus in 2021. It observes that the shift to working from home has seen the digital transformation of businesses rapidly accelerate. It believes there is now a large opportunity as IT departments no longer have to secure just office environments but home user environments as well. 

The rollout of 5G networking and technologies is what Dicker has called ‘the next wave of data creation’ and presents an opportunity to capitalise on new devices and infrastructure. The company believes 5G will usher the next era of cloud solutions that will enable real-time decision making, further driving the cloud’s consumption and the company’s recurring revenues. 

To address increasing demand, Dicker Data has invested in a new warehouse facility in Kurnell, NSW. This will increase its existing warehouse space by over 80% to 22,965 sqm, providing space for increased inventory holding and further technology portfolio diversification. 

The Dicker data share price is trading marginally higher today at $10.77.

More reading

• Airtasker (ASX:ART) share price continues rollercoaster
• Why the Tilt Renewables (ASX:TLT) share price is in focus
• Brokers name 3 ASX shares to buy now
• Better buy: Microsoft vs. Alphabet
• Why Newcrest (ASX:NCM) and Northern Star (NST) shares are flying high today

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data 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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Airtasker Ltd (ASX: ART) shares are continuing on a wild ride today, after rocketing 10% yesterday to rebound from two consecutive days of falls. The Airtasker share price opened slightly lower this morning before rallying 4.6% to $1.47. However, at the time of writing, Airtasker shares have retreated back to $1.40, down 1.06% for the day so far. 

Airtasker is a digital disruptor in the job-sharing space, providing an app-based community platform that connects people who need to outsource tasks and find local services, with people who are looking to earn money and ready to work.

It helps facilitate work such as home cleaning, repair jobs, admin, photography, graphic design or even website building. The platform is popular among young people and those working in the so-called ‘gig economy’. The company generates revenue from service fees and stored value brokerage.

Airtasker executed its initial public offering (IPO) one month ago and, since then, has become one of the most talked-about companies on the ASX. It’s been a favourite of the much-discussed ‘Reddit Army’ of retail day traders, which has led to huge fluctuations in the Airtasker share price.

Airtasker constantly in the news

In addition to the Reddit coverage, and the mainstream interest this can garner for new shares, Airtasker has also found regular coverage across news outlets.

From reports of one Airtasker user paying $600 to transport a puppy, to a DIYer making an income assembling IKEA furniture, the variety of interesting news bites the company’s users can produce could become an infinite stream of free publicity. This is in addition to the paid publicity it’s sourcing from a range of social media influencers.

Airtasker share price snapshot

Arguably, Airtasker has become the ASX’s GameStop, rising by as much as 200% in a single day. The ASX has exercised mild controls over rapid price surges, placing temporary trading halts and constantly monitoring Reddit threads for pump-and-dump encouragement. 

However, it’s also made it clear that “hysterical enthusiasm” isn’t against the rules. Despite declining three out of five days this week, at the time of writing, the Airtasker share price is still up 8.5% for the week so far. To date, it has also rallied by around 117% from its IPO list price. 

More reading

• Wilson Asset Management (WAM) thinks these 2 ASX shares are a buy
• 88 Energy and Airtasker were among the most traded ASX shares last week
• Is Canva coming to the ASX?
• The Airtasker (ASX:ART) share price finished 77% higher in March
• Why it’s turning into a bad week for Airtasker (ASX:ART) shares

Motley Fool contributor Lucas Radbourne-Pugh 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 Tilt Renewables Ltd (ASX: TLT) share price is back in the news. Shares in the trans-Tasman renewables group surged higher in March after agreeing a $2.7 billion takeover offer led by AGL Energy Limited (ASX: AGL) and Mercury NZ Ltd (ASX: MCY).

That could be about to change, however, with a rival bidder lobbing an offer worth 20 NZ cents per share more.

Why is the Tilt Renewables share price on watch?

According to an article in the Australian Financial Review (AFR), Canadian pension fund CDPQ has re-entered the bidding war.

CDPQ has reportedly offered NZ$8.00 per share for Tilt. That is higher than the NZ$7.80 per share agreed with a vehicle established by QIC Ltd, AGL and Mercury.

According to the article, CDPQ’s offer is understood to be binding and fully funded. PowAR, the shared investment vehicle of QIC and AGL, and Mercury do hold a matching right in the deal.

The Tilt Renewables share price will be one to watch as the takeover saga drags on. However, shares in the Aussie renewables group remain in a trading halt since Thursday.

CDPQ has over C$360 billion in assets under management and is a major Canadian pension fund. That puts the ball back in PowAR and Mercury’s court on whether they want to match the NZ$8.00 per share bid.

The Tilt Renewables share price last traded at $7.00 per share on the ASX. On New Zealand’s Stock Exchange (NZX), Tilt’s shares last traded at NZ$7.60 per share.

Goldman Sachs is advising Tilt’s largest shareholder, Infratil Ltd (ASX: IFT), which currently owns a 65.5% stake in the trans-Tasman group.

According to today’s article in the AFR, both the PowAR/Mercury bid and CDPQ see strategic value in the significant portfolio of Australian and New Zealand renewables assets.

Foolish takeaway

The Tilt Renewables share price will be worth watching when it returns to trade as takeover bids heat back up. CDPQ has re-entered the bidding war 

More reading

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• Top brokers name 3 ASX shares to sell next week
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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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Australia’s top brokers have been busy adjusting their estimates and recommendations once again. This has led to the release of a number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Appen Ltd (ASX: APX)

According to a note out of Citi, its analysts have retained their buy rating and $30.90 price target on this artificial intelligence (AI) services company’s shares. The broker notes that one of its rivals, Scale AI, has recently raised US$325 million in fresh funding. This doubles its valuation to US$7 billion in a matter of months. Citi believes this is a positive read through for Appen in relation to the outlook for the AI training data market. Though, it acknowledges that the company may have to increase its investment to stay ahead of the competition. The Appen share price is currently fetching $17.17.

Qantas Airways Limited (ASX: QAN)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this airline operator’s shares to $6.45. This follows an update out of Qantas this week revealing that it is expecting its domestic capacity to increase beyond pre-COVID levels in FY 2022. Overall, Macquarie believes that structural business improvements made during the pandemic will eventually lead to higher profitability. The Qantas share price is trading at $5.15 on Friday morning.

Zip Co Ltd (ASX: Z1P)

Analysts at Morgans have retained their add rating but trimmed their price target on this buy now pay later (BNPL) provider’s shares to $10.39. This follows the completion of its $400 million convertible notes offering. According to the note, the broker believes this leaves Zip with $500 million of cash to support its growth plans. It feels this is enough to fund the company’s operations for some time to come, ruling out any further capital raisings in the near term. The Zip share price is currently fetching $9.19.

More reading

• ASX 200 rises, Zip sinks, BOQ reports
• Zip (ASX:Z1P) eyes potential stock and crypto trading services
• Top broker tips Zip (ASX:Z1P) share price to rocket higher
• Why BrainChip, Regis Resources, Whitehaven, & Zip shares are tumbling lower
• ASX 200 flat: Zip raises $400m, Bank of Queensland results, Regis crashes

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 Appen Ltd and ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are two of the mega-cap technology companies that currently dominate the stock market. Both stocks are up over 700% in the past decade (compared to the S&P 500 at 200%) and now have market caps of $1.9 trillion (for Microsoft) and $1.5 trillion (for Alphabet).

Microsoft has continued its dominance of the workplace software market and also ventured into other profitable businesses like Azure (its cloud computing division) and business-focused social network LinkedIn, while Alphabet continues to lead the search and online advertising markets. But which stock is the better buy going forward? Let’s take a look.

Alphabet is a juggernaut

Alphabet’s search and advertising business is a juggernaut, growing substantially over the past few years even though it is now larger than a small nation’s GDP. The search and ad segment is the majority of Alphabet’s current business and houses search, YouTube, and other Google media properties. Last year, Google services operating income hit $54.6 billion, up from $49 billion in 2019 and $43.1 billion in 2018.

However, Alphabet’s overall operating income in 2020 was only $41.2 billion, which was significantly less than its search and advertising division. How did this happen? Because the company’s two other subsidiaries (Google cloud and “other bets”) are currently generating heavy operating losses. This shouldn’t scare investors, though. Google cloud lost $5.6 billion in 2020 on $13 billion in revenue, but this is to be expected with all the upfront spending that is required to run a cloud computing service, especially when the company is trying to compete with the market leaders in Amazon‘s Amazon Web Services and Microsoft’s Azure.

“Other bets” is a bit different, as it is a collection of moonshot start-ups that Alphabet is trying to build and potentially spin off as separate companies. One example is Waymo, the leader in self-driving technology, which was spun off from Alphabet in 2016, but there are many start-ups within this segment.

Right now, Alphabet stock currently trades at a price-to-earnings ratio (P/E) of 35.8. This looks high, but if you just look at Google services operating income of $54.6 billion (ignoring other bets and Google cloud), that P/E comes down to a more reasonable 27, which is well below the average market multiple at the moment.

Microsoft is growing at double-digit rates

Microsoft has seen many of its business lines grow at double-digit rates over the past few years since it transitioned to cloud-based services at the end of Steve Ballmer’s tenure and expanded them under current CEO Satya Nadella. Microsoft 365 Business, which puts more emphasis on secured cloud services, grew revenue by 21% last quarter, while the personal computing division grew by 12% to $15.1 billion. That is some impressive growth at the scale Microsoft is already operating in.

Microsoft’s fastest-growing division is its cloud computing unit Azure. Last quarter, Azure’s revenue grew 50% year over year. Azure falls under Microsoft’s intelligent cloud division, so investors don’t know its nominal revenue numbers. However, intelligent cloud as a whole grew revenue 23% last quarter to $14.6 billion, and you can assume Azure made up the majority of that growth.

Microsoft is also seeing solid growth from its Xbox and LinkedIn subsidiaries, plus it has acquired software collaboration hub Github and is rumored to be looking to acquire the social network Discord. This week it announced that it bought voice-to-text specialist Nuance Communications for $16 billion in the hopes of expanding its healthcare vertical. Finally, Microsoft just signed a multi-billion dollar contract with the U.S. Army to provide it 182,000 HoloLens augmented reality goggles.

Clearly, Microsoft is busy, with many different business lines humming along. Its valuation reflects that although its trailing P/E of 38 is still just below an inflated S&P 500 average hovering around 42.

Verdict

There’s a reason Microsoft and Alphabet both have market caps over $1 trillion. As you can see from the examples above, the businesses are phenomenal and are currently firing on all cylinders. But if I had to choose one company to own over the next decade, it would have to be Alphabet, mainly due to its cheaper valuation. I don’t think investors can go wrong owning either one of these stocks, but the odds currently tilt in Alphabet’s favor.

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

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• Here’s why Microsoft just spent $19.7 billion to acquire nuance communications

Brett Schafer has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, and Microsoft and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. 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 Newcrest Mining Ltd (ASX: NCM) share price and the Northern Star Resources Ltd (ASX: NST) share price have been strong performers on Friday.

At the time of writing, the shares of these gold miners are both up 4%.

Why are Newcrest and Northern Star shares charging higher?

There have been a couple of catalysts for the rise in the Newcrest and Northern Star share prices today.

The first is a rise in the gold price overnight. According to CNBC, the spot gold price rose 1.6% to US$1,764.70 an ounce after bond yields retreated.

This has given the overall sector a lift, leading to the S&P/ASX All Ords Gold index rising 3% this morning.

What else is driving their shares higher?

In addition to the rising gold price, a broker note out of Goldman Sachs this morning has given their shares a boost.

According to the note, the broker has upgraded both Newcrest and Northern Star to buy ratings from neutral.

Newcrest share price is cheap

In respect to Newcrest, Goldman has upgraded its shares to a buy rating with an improved price target of $33.50.

The broker made the move for three key reasons. One is its valuation. Goldman notes that its shares were trading at 0.76x net asset value (NAV) prior to today’s gain. This is the largest discount among ASX 100 gold peers and North American gold majors.

In addition to this, the broker points out that Newcrest’s value-accretive growth pipeline continues to develop, with project catalysts to come.

And thirdly, it believes its earnings will hold up at current levels despite production declines in the coming years.

Northern Star share price trading at a big discount

As for Northern Star, the broker believes the Northern Star share price is trading at an attractive level after recent weakness.

It notes that its shares trade at 0.83x NAV compared to 1.2x by its North American peers.

Outside this, Goldman likes Northern Star due to its organic growth opportunities across all production hubs and potential synergies from its merger with Saracen Mineral.

This could make both gold miners worth considering if you’re looking for exposure to the precious metal.

More reading

• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Is it time for ASX gold shares to make a comeback?
• 5 things to watch on the ASX 200 on Tuesday

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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Mineral Resources Ltd (ASX: MIN) shares are sliding lower today after the company released its quarterly exploration and mining activities report. At the time of writing, the Mineral Resources share price is trading 4.32% lower at $43.23. The iron and lithium miner included both positive and negative news in its update.

Let’s take a closer look at the company’s quarterly report.

What went well for Mineral Resources this quarter?

The third quarter of the 2020 financial year saw Mineral Resources accomplish a number of achievements.

The miner saw the first iron ore shipments from its Womunna Iron Ore Mine commence during the quarter. 

Mineral Resources also commissioned 3 crushing plants – a NextGen 2 plant at Mount Whaleback, the Womunna plant and another at a third-party site. According to the release, the combined capacity of these plants is 31 million tonnes per annum.

The company was awarded 2 gas exploration titles in March, continuing its strategy to power its mining operations with its own natural gas supply. Thus, replacing diesel fuel with a lower cost and lower emissions alternative.

Mineral Resources will be hoping this places it in good stead to meet its goal of zero emissions by 2050. It’s also continuing plans to install a solar and battery array that could provide 30% of the Womunna mine’s power needs.

The company’s total iron ore production and shipping hasn’t changed since the previous quarter but were 44% and 51% higher respectively than the previous corresponding period.

The quarter saw iron ore prices reach a near-record high of US$144.80 per tonne.

Finally, Mineral Resources’ employee safety continued to be strong. No employees took time off work due to a workplace injury over the last 12 months and the company’s reportable injuries were down 13% compared to last quarter.  

Not all news within the company’s quarterly report was positive

There were 2 notable pieces of not-so-positive news in Mineral Resources’ quarterly exploration and mining activities report.

The first being shipping delays due to a shortage of truck drivers caused by coronavirus-induced border closures.

The company managed to ship just 4.1 million wet metric tonnes (wmt) of iron ore throughout the quarter, around the same amount as the previous quarter.

This is significantly below the guidance set before the pandemic hit Australia. Back then, Mineral Resources expected to ship between 19.5 million and 20.5 million wmt throughout the 2020 financial year (averaging approximately 4.8 million to 5.1 million wmt per quarter).

Mineral Resources states, on an average day, it produces around 10,000 wmt of iron ore that is unable to be shipped.

As no one can predict when sporadic border closures could end, the company’s iron ore shipment guidance for the 2021 financial year has been lowered. It now expects to ship between 17.4 million and 18 million wmt of iron ore throughout the 2021 financial year. This represents a goal of approximately 4.3 million to 4.5 million wmt per quarter.

Finally, Mineral Resources reported that its Mt Marion Lithium Project’s production was 16% lower than the previous quarter. It stated the lower production rate was due to lower-yielding ore being used in production, which is part of the company’s optimised long-term mine plan. Production at the mine is still 22% higher than the previous corresponding quarter.

Mineral Resources said its shipments of spodumene concentrate from the mine are back in line with expectations. The mine remains on track to meet or exceed its shipment guidance for the financial year.

Mineral Resources share price snapshot

The Mineral Resources share price has been performing well on the ASX as of late.

The miner’s share price is up 15.4% year to date. It’s also up by around 155% over the last 12 months.

Mineral Resources has a market capitalisation of around $8.5 billion, with approximately 188 million shares outstanding.

More reading

• Big brokers think these 5 ASX shares can outperform the market
• ASX 200 climbs, Crown soars, Mineral Resources drops
• Mineral Resources (ASX:MIN) share price falling despite good news

Motley Fool contributor Brooke Cooper 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 Mineral Resources (ASX:MIN) share price sinks on activities report appeared first on The Motley Fool Australia.

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