The Rio Tinto Ltd (ASX: RIO) share price is marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining stock closed Friday at $119.00. In late morning trade on Monday, shares are swapping hands for $119.92 apiece, up 0.77%.

For some context the ASX 200 is down 0.33% at this same time.

This comes as the miner reports on its latest sustainable production initiatives.

Rio Tinto share price lifts on low-carbon aluminium

The Rio Tinto share price is in the green after the company announced it will install carbon-free aluminium smelting cells at its Arvida smelter in Quebec, Canada.

This will see the ASX 200 miner using the first technology licence issued by the ELYSIS joint venture. Rio Tinto noted this investment would support the ongoing development of the ELYSIS technology and enable the company to build expertise in its installation and operation.

Management said the facility will use the same technology that’s already been successfully demonstrated at the ELYSIS Industrial Research and Development Center, also in Quebec.

Rio Tinto will design, engineer, and build a demonstration plant equipped with ten pots operating at 100 kiloamperes (kA). A new joint venture will own the plant.

Rio Tinto will invest US$179 million in the JV, and Quebec’s state government will invest US$106 million via Investissement Quebec. That will see the equity partners kick in a total investment of US$285 million (AU$426 million).

The plant will have the capacity to produce up to 2,500 tonnes of commercial-quality aluminium per year without direct greenhouse gas emissions. The first production is targeted for 2027.

Commenting on the green production plan that could offer the Rio Tinto share price some ongoing tailwinds, the miner’s Aluminium CEO Jerome Pecresse said:

This investment will further strengthen Rio Tinto’s industry-leading position in low-carbon, responsible aluminium in North America with our hydro-powered smelters and our recycling capacity.

Becoming the first to deploy the ELYSIS carbon-free smelting technology is the next step in our strategy to decarbonise and grow our Canadian aluminium operations.

In addition to delivering even lower-carbon primary aluminium for our customers, this investment will allow Rio Tinto to build its expertise on installing and operating this new technology, while the ELYSIS joint venture continues its research and development work to scale it up to its full potential.

Quebec Minister of Economy, Innovation and Energy Pierre Fitzgibbon added: “This is a technological innovation with unprecedented benefits for our aluminium sector, which remains an undisputed world leader.”

Potentially offering some additional support for the Rio Tinto share price, the miner said ELYSIS joint venture partner, Alcoa Corp (NYSE: AA), will have the option to purchase a portion of the aluminium produced over the first four years at the demonstration plant through an offtake agreement.

The post Rio Tinto share price marching higher amid $426 million ‘industry-leading’ step appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

The Fortescue Ltd (ASX: FMG) share price has been through some pain recently. It’s down 21% from 22 May 2024 and it has fallen 27% in the past six months, as shown on the chart below.

It has been one of the worst-performing ASX blue chips in 2024 to date.  

When investments fall heavily, there is an opportunity to buy them at a discounted price. There’s no guarantee that the ASX mining share will rebound in the short term or longer term. However, history has shown that commodity prices can move cyclically, and therefore, the Fortescue share price could be a candidate for a contrarian opportunity when it’s at a low price.

Iron ore price sinks

The iron ore price fell by approximately 10% in June amid uncertainty regarding demand from China, the top consumer of iron ore. According to Trading Economics, there have been signs of “abundant supply” in the country, which “weighed on the market”.

On top of that, Iron ore production from Chinese miners increased 13.4% year over year from January 1, 2024, to May 2024, while iron ore imports rose by 7%. Despite this, steel production declined by 1.4% year over year.

There is uncertainty about what the upcoming Chinese manufacturing PMI (purchasing managers’ index) figures will show – it could provide useful insights into the world’s second-largest economy.

However, Trading Economics also points to some positives. For example, Beijing reportedly recently relaxed homebuying curbs which could boost the property market and increase steel demand for housing construction. Some of those measures, revealed at the end of June, included lower mortgage rates and minimum downpayment ratios which have already been enacted.

Iron ore is the key earnings generator for Fortescue, so weakness in the iron ore price isn’t ideal, but it explains why the Fortescue share price has fallen as far as it has.

Is this a good time to invest at this Fortescue share price?

I believe it can be beneficial to invest in cyclical stocks when they are at their lowest points in the cycle. I wouldn’t describe the iron ore price as being at a depressed level, as it is still trading above US$100 per tonne. If it were to drop below that level, I would anticipate a drop in Fortescue shares. Should Fortescue shares fall below $20, I think it could be a smart idea to consider investing.

I should mention that the company is also becoming increasingly involved with green energy through green hydrogen, green ammonia, and high-quality batteries. We also learned recently that Fortescue is selling software related to electric batteries, which could be another nice earner for the business if it wins more customers. The Fortescue share price sell-off means we can get cheaper exposure to this side of the business.

According to the estimates on Commsec, the Fortescue share price is valued at under 9x FY25’s estimated earnings with a grossed-up dividend yield of 9.4%.

The post Is the Fortescue share price too low to ignore? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Fortescue. 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.

Imagine life without electricity. Our modern lifestyles increasingly rely on energy, and this dependency intensified post-pandemic as digitalisation swept through every aspect of daily life.

In parallel, industries are facing mounting demands from artificial intelligence (AI) and digital infrastructure, heightening the need for reliable and abundant electricity like never before.

Tesla Inc CEO Elon Musk predicts power shortages will be the next big challenge. In a March 2024 interview at the Bosch Connected World conference, he said:

A year ago, the shortage was chips, neural net chips. Then, it was very easy to predict that the next shortage will be voltage step-down transformers. Then, the next shortage will be electricity.

They won’t be able to find enough electricity to run all the chips. I think next year, you’ll see they just can’t find enough electricity to run all the chips.

As I highlighted here, Australia is not free from this global trend.

In light of this, do you wonder if there are any ASX small-cap shares that may capitalise on the anticipated electricity shortages and capital investments? I’ve done the homework for you.

IPD Group Ltd (ASX: IPG)

IPD Group is a leading distributor of electrical and automation solutions in Australia, with more than 70 years in the industry. Partnering with global giants like ABB Ltd and General Electric Co., IPD Group offers a comprehensive range of services encompassing power distribution, industrial control, and renewable energy solutions.

Recently, IPD Group expanded its portfolio into solar energy by acquiring Addelec. This enhanced its capability to deliver full-scale photovoltaic (PV) system solutions.

IPD Group expects robust growth for FY24, forecasting earnings before interest, taxes, depreciation, and amortisation (EBITDA) between $39 million and $39.5 million — a 42% increase from the previous year. This growth is largely driven by strategic acquisitions like EX Engineering and CMI Operations.

Through these acquisitions, IPD Group aims to further expand its value chain. The company now provides comprehensive support for critical infrastructure development, including data centres and electric vehicle (EV) charging facilities.

The IPD Group share price has lifted by 10% over the past year, and its shares are trading at 16x FY25 EPS estimates by S&P Capital IQ.

DUG Technology Ltd (ASX: DUG)

Founded in Perth in 2003, DUG Technology specialises in advanced computing and data solutions. From two founders — Dr Matthew Lamont and Dr Troy Thompson — DUG has grown to more than 250 staff with offices in Australia, the United States, the United Kingdom, Malaysia, and most recently, Abu Dhabi.

With a focus on delivering high-performance computing (HPC) solutions to industries such as oil and gas exploration, DUG is known for its expertise in seismic processing and imaging. The company uses cutting-edge computational techniques to enhance data processing speeds and accuracy.

DUG highlights that its new technology, Multi-Parameter Full Waveform Inversion (MP-FWI) imaging technology, consumes only 10% of the time and 7% of the manpower compared to conventional imaging solutions.

The company uses a unique cooling mechanism, DUG Cool, which the company claims cuts power usage by up to 51% and significantly reduces maintenance.

In 3Q FY24, the company reported a 39% increase in revenue and a 24% growth in EBITDA. DUG’s co-founder and managing director, Dr Lamont, is optimistic about the future. He said:

These are very exciting times for DUG. The order book funnel, which includes project awards and risk-weighted opportunities and leads, remains very strong.

Following a decision to establish a business development presence in Abu Dhabi, a great deal of opportunity has been unearthed. As a result, plans are underway to start a new business unit in the Middle East. This will be our fourth business unit following Australia/Asia, Americas and UK/Europe/Africa.

The DUG share price has surged 136% over the past year, placing its shares at 40x their FY25 EPS estimates.

The post 2 ASX shares to benefit from anticipated power shortages appeared first on The Motley Fool Australia.

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Motley Fool contributor Kate Lee 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 Dug Technology and Ipd Group. The Motley Fool Australia has positions in and has recommended Ipd Group. The Motley Fool Australia has recommended Dug Technology. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a shocking start to the new financial year for shareholders of one ASX gold stock.

This morning, the gold miner dropped a bombshell announcement that revealed that receivers have been called in despite the sky-high gold price.

Which ASX gold stock is going bust?

This morning, it was revealed that Calidus Resources Ltd (ASX: CAI) is on the brink and has called in administrators.

In a very brief statement from the administrators, it says:

Notice is hereby given that Hayden White and Daniel Woodhouse of FTI Consulting (Administrators) were appointed as joint and several voluntary administrators. […] It should be further noted that Richard Tucker and John Bumbak of KordaMentha were appointed as Receivers and Managers by the senior secured creditor Macquarie Bank to Calidus Resources, Keras (Pilbara) and Calidus Blue on 28 June 2024.

This will no doubt come as a big surprise to shareholders. Particularly given how the ASX gold stock only recently raised $22.5 million from investors and restructured its operations.

Commenting at the time, Calidus’ managing director, Dave Reeves said:

This financial restructure will deliver a host of substantial benefits to Calidus, headlined by increased production and cashflow this year. This will in turn help us achieve our target of producing 120,000oz per annum within three years.

What’s going on?

It remains unclear what has triggered the voluntary administration. However, it is worth noting that the company owes Macmahon Holdings Ltd (ASX: MAH) a sizeable amount.

In fact, Macmahon shares are sinking on the news. It responded to the receivership bombshell, commenting:

Macmahon understands that the appointment of the Receivers and Managers had been made in response to the decision by Calidus’ Board of Directors to appoint Voluntary Administrators on 28 June 2024 as outlined in the ASX announcement by KordaMentha dated 1 July 2024.

Macmahon provides mining and drill and blast services to Calidus at their Warrawoona mine. Macmahon’s preliminary assessment of net current exposure under the contract is circa $33.9 million. Macmahon also holds an equity interest in Calidus listed shares with a value of $5.7 million at the close of trading on 28 June 2024.

One positive for the ASX gold stock is that receivers want to keep its mine operating during the process. It said:

Macmahon has received confirmation from the Receivers and Managers that Macmahon’s ongoing services are required. These ongoing services during the receivership will be governed by purchase orders and payment from the Receivers and Managers, thereby minimising any increase in net current exposure. Macmahon will continue to monitor developments and update the market as necessary.

Here’s hoping the gold stock finds a way out of this mess.

The post ASX gold stock goes bust despite soaring precious metal price appeared first on The Motley Fool Australia.

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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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Lake Resources (ASX: LKE) share price is outpacing the benchmark today. 

Shares in the embattled All Ordinaries Index (ASX: XAO) lithium stock closed on Friday trading for 4 cents. In morning trade on Monday, shares are changing hands for, well, 4 cents apiece, leaving them flat at time of writing.

That’s a good bit better than the 0.7% loss posted by the All Ords at this same time, however. 

Here’s what’s happening.

ASX lithium share finds support amid major cost cuts

The Lake Resources share price is holding its own after the company released a strategic operational update on its flagship Kachi lithium project, located in Argentina.

The ASX lithium miner reported that its Goldman Sachs-led partnering process for Kachi is continuing. Management said they have progressed from reviewing a broad range of potential partners to participating in detailed discussions with a select group of interested parties.

Investors are supporting the Lake Resources share price after the miner acknowledged that the partnership process, intended to maximise Kachi’s value, will take longer than initially expected in light of the current market conditions.

Commenting on the partnership process, Lake Resources CEO David Dickson said, “We continue to engage with interested parties as part of the strategic partnering process for Kachi.”

Dickson added:

We, along with industry analysts across the sector, see a structural deficit of battery-grade lithium in the next five years. Because of that, we are taking all necessary actions to secure our financial flexibility, ensuring we maximise value for our shareholders from the Goldman led strategic process.

The ASX lithium miner said that in order to support the value of its strategic partnering process to secure equity investment and offtake agreements, the non-binding conditional framework agreements entered into in late 2022 with WMC Energy and SK On Co are not being progressed.

The company also reported it is managing an ongoing process to potentially sell some of its non-core assets and lithium tenements.

Commenting on the asset sales that could help support the Lake Resources share price, Dickson noted:

These assets, while non-core to Lake’s strategy, are strategically located within the Lithium Triangle and offer exploration and development potential in close proximity to other known lithium resources.

In order to focus our efforts on making Kachi a success, we believe the timing is right for marketing the sale of these assets, which is part of our plan to optimise the Company’s financial runway.

This supports the work we have done over the past 18 months and the successful completion of the Definitive Feasibility Study showing that Kachi is a globally significant, tier-one project.

And on the cost-cutting front, the miner said it will reduce its global workforce by more than 50%.

As at 31 March, Lake Resources had a cash balance of $31 million.

Lake Resources share price snapshot

It’s been a tough year for the Lake Resources share price, down 87% over the past 12 months.

The post Down 87% in a year, Lake Resources share price resilient following severe cuts to survive appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 Goldman Sachs Group. 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 Australian share market was on form in FY 2024. During the 12 months, the S&P/ASX 200 Index (ASX: XJO) delivered a return of 7.8% before dividends.

A key driver of these gains was the banking sector, which delivered market-beating returns over the period. This was driven by investors piling into this side of the market in response to better than expected performances and an improving outlook.

But which ASX bank shares were the best to own in the last financial year? Let’s find out.

Bendigo and Adelaide Bank Ltd (ASX: BEN)

The Bendigo and Adelaide Bank share price was up 38% in FY 2024. This was despite a reasonably average performance from the regional bank during the 12 months. For example, in February, Bendigo and Adelaide Bank reported a 5% decline in cash earnings after tax to $268.2 million. However, the ASX bank share was arguably oversold a year ago and had a long way to bounce back as conditions in the banking sector improved

National Australia Bank Ltd (ASX: NAB)

The NAB share price wasn’t far behind with a gain of 37% during the year. Investors appear to have been buying the banking giant’s shares after rate hikes failed to cause a spike in bad debts. And while the bank’s financial performance wasn’t great on paper, it is performing in line with expectations during the current financial year. Together with its strong balance sheet, this allowed the ASX bank share to announce a new $1.5 billion share buyback.

Westpac Banking Corp (ASX: WBC)

The Westpac share price had a strong year and rose 27.6% over the period. Once again, Westpac posted a half-year result that was largely in line with expectations. And like NAB, the bank decided its balance sheet was strong enough to allow another $1 billion on-market share buyback. An added bonus for shareholders was the special dividend that was announced with its half-year results.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price was just behind with a gain of 27% during the financial year. Investors were bidding Australia’s largest bank to record highs as banking sector optimism reached fever pitch. Interestingly, this was despite almost every major broker declaring the bank’s shares as overvalued 12 months ago.

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price was the next best performer with a 19.1% gain over the period. It was a busy period for the ASX bank share and its shareholders. ANZ delivered a solid half year result in May, announced another $2 billion share buyback, and made major progress with its proposed takeover of the banking operations of Suncorp Group Ltd (ASX: SUN). In fact, at the close of the financial year, the transaction was all but complete.

The post These were the five best ASX bank shares to own in FY24 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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.