Tag: Motley Fool

Three ASX mining shares are on our radar today.

While the All Ordinaries Index (ASX: XAO) is up a respectable 0.44% in afternoon trading, these ASX mining shares are leaving the index in the dust as investors send them rocketing higher following reports of promising new finds.

So, without further ado…

ASX mining share leaps 30%

First up, we have Gascoyne Resources Ltd (ASX: GCY).

The ASX mining share, focused on gold exploration and development, is up 33.33% at the time of writing after emerging from Friday’s trading halt.

This comes after Gascoyne reported it had discovered a “substantial” new high-grade lode system at its new Gilbey’s North prospect, situated within its 100%-owned Dalgaranga Gold Project in Western Australia.

Highlights from one of the drill holes include 59 metres at 12.5 grams of gold per tonne from 139 metres, including 13m@51.1g/t.

Gascoyne Resources CEO Simon Lawson said: “It’s not every day that you see results like this in the WA gold sector and we are incredibly excited by the potential of this newly discovered lode system on the western edge of the Gilbey’s North discovery.”

But Gascoyne isn’t the only ASX mining share making hay from its new find today.

Copper strike piques investor interest

Cobre Ltd (ASX: CBE) shares are also charging higher, up 31.33% since yesterday’s close.

The ASX mining share is garnering investor interest after announcing its fourth intersection of copper mineralisation from an ongoing drill program on Kalahari Metals Limited’s Ngami Copper Project (NCP) licenses. Those licenses are located in the Kalahari Copper Belt in Botswana.

Commenting on the positive drill results, Cobre managing director Martin Holland said:

We’re delighted with the results from the latest drill hole at NCP, which have significantly extended the known footprint of mineralisation over more than 4 kilometres. Importantly, all the results so far indicate that the target remains open-ended to the northeast and is larger than previously anticipated. The footprint of mineralisation now extends over 4 kilometres, which is in line with the largest known deposits in the Kalahari Copper Belt.

Which brings us to…

The third ASX mining share rocketing today

Rounding off the list of surging ASX mining shares is Latin Resources Ltd (ASX: LRS).

The Latin Resources share price is up 14.78%, bringing its 2022 gains to a whopping 340%.

Investors are sending the ASX mining share higher again today after the company reported a new lithium spodumene discovery at its 100% owned Colina Prospect, located in Brazil.

The drilling intersected “a new swarm of spodumene bearing pegmatites”, including one that was 18.75 metres thick.

Latin Resources also said its regional mapping campaign had highlighted a third outcropping pegmatite system in the proximity, yet to be drilled.

Commenting on the drill results, Latin Resources exploration manager Tony Greenaway said

The intersection of these significant spodumene pegmatites … is an impressive new discovery for the Salinas exploration team. This hole is testing an area approximately 500 metres to the west of Colina, well outside of our current resource definition drilling focus.

We knew there were additional parallel pegmatite systems out to the west, getting these spodumene intersections confirms the very high prospectivity of the wider project area.

There you have it.

Three ASX mining shares rocketing today on three different discoveries of gold, copper and lithium.

The post 3 ASX mining shares rocketing higher today on new finds appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Cobre share price zooms 40% higher on new copper discovery
• Guess which ASX mining share just exploded 30% on a new gold discovery
• Why is the Latin Resources share price leaping 30% today?
• Exploding 600% in a month, what is going on with the Cobre share price?
• Copper and cash: Why this ASX mining share is on ice today

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.

from The Motley Fool Australia https://ift.tt/fpPYAkL

It’s been a pleasing day for the S&P/ASX 200 Index (ASX: XJO) so far this Tuesday. At the time of writing, the ASX 200 has added another 0.54% and is back to over 7,100 points. But it’s been even better for one ASX 200 share – Endeavour Group Ltd (ASX: EDV).

Endeavour shares are smashing the market’s returns for one. The bottle shop and pub owner is currently enjoying a 2.57% gain to $8.185 a share at the time of writing. But that’s not the biggest piece of news today.

Rather, it’s Endeavour’s fresh new all-time high. Yep, earlier this morning, the Endeavour share price climbed as high as $8.27 a share. This is both the company’s new 52-week and record high.

Sure, Endeavour has only been listed on the ASX in its own right since June last year. That was when the company was spun out of its old parent Woolworths Group Ltd (ASX: WOW). But it’s still a big day for Endeavour and its shareholders nonetheless.

Endeavour share price hits new record high

There’s been no news out of the company today that might explain this latest push into record territory. Indeed, no news out from Endeavour this month so far. So perhaps investors are getting in before Endeavour reports its FY2022 full-year earnings on 23 August next week.

As we covered earlier this month, more than one expert investor has been eyeing off Endeavour shares recently too. So that could also be influencing sentiment.

But Endeavour has been on quite the run since its ASX listing last year. In 2022 thus far, the Endeavour share price is up a healthy 20% or so, vastly outperforming the broader ASX 200 index. This remains almost 6.5% lower than it was at the start of the year today.

Endeavour shares are also up by close to 14% over the past 12 months, and by 33.6% since its ASX debut in June last year.

At the current Endeavour share price, this ASX 200 consumer staples share has a market capitalisation of $14.7 billion, with a dividend yield of 3.07%.

The post Endeavour share price outperforms on Tuesday to smash new, all-time high appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Sims share price slips despite stellar growth in FY22
• Why is the Rio Tinto share price lagging the ASX 200 on Tuesday?
• ASX 200 shrugs off prospect of further rate rises revealed in RBA minutes
• Is the Bendigo Bank share price in the buy zone following Monday’s sell-off?
• SG Fleet share price rises on FY22 earnings increase

Motley Fool contributor Sebastian Bowen 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.

from The Motley Fool Australia https://ift.tt/4OdyoA0

The Sims Ltd (ASX: SGM) share price is in the red this afternoon after the company posted its full-year results for FY22.

At the time of writing, Sims shares are down 3.18% to $15.21, having earlier slumped as low as $14.51.

Let’s take a closer look at what the ASX-listed metal and electronics recycling company reported.

What did Sims report?

Here are the highlights from Sims’ FY22 results:

• Sales revenue rose 56.6% to $9,264.4 million compared to FY21
• Net profit up 161.2% to $599.3 million
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) jumped by 65.4% to $958.9 million
• Earnings before interest and taxation (EBIT) went up by 146.4% to $773.6 million
• Underlying EBIT increased 95.6% to $756.1 million
• Operating cash flow surged by 323.3% to $547.8 million
• Declared a final dividend of 50 cents per share, a 66.7% jump on FY21

Revenue experienced strong growth on the back of a 12.2% increase in sales volumes. This was primarily driven by a 23.6% increase in zorba volumes, partially due to improved metal recovery technology.

Sims benefitted from a surge in sales prices, in particular ferrous commodities. The average sales price for ferrous went up by 43% compared to non-ferrous sales prices, which increased by 32%.

The higher operating costs of 23.9% were a result of greater activity across the business, acquisitions, greenfield facilities, and enhanced performance incentives.

What else happened in FY22?

All segments within the business experienced inflationary pressures, in particular labour.

It should be noted that the company’s earnings benefitted from an 89.2% increase in earnings contribution from a 50% interest in SA Recycling.

Diluted earnings per share (EPS) increased from 112.8 cents in FY21 to 295.6 cents in FY22, a rise of 162.1%.

The weighted average number of basic shares was reduced by 3.3 million shares relative to FY21. On top of this, the company bought back and cancelled 7.7 million shares, contributing to an improvement in diluted EPS by 5.6 cents.

In addition, Sims declared a final dividend of 50 cents per share, 50% franked. That brings the full-year payout to 91 cents — a 116% increase over the prior year. The dividend will be paid out on 19 October 2022.

Meanwhile, the company achieved its lowest total recordable injury frequency rate ever after implementing its critical risk management strategy in FY19.

The business continues to hit sustainability goals, ranking 11th on the 2022 Global 100 List of most sustainable companies in the world.

What did management say?

Commenting on the results, Sims CEO and Managing Director Alistair Field said:

We made significant progress on our business strategy: successfully completed several strategic acquisitions, continued to deploy enhancement technologies in ferrous and non-ferrous, and opened new feeder yards in the metal business.

In Sims Lifecycle Services, we launched new service offerings and invested in engineering and technology to continue driving innovation and build capacity to scale up operations quickly when the supply chain challenges ease.

I am particularly proud of how our teams managed the inflationary pressures and market volatility, working across all market segments to protect margins while maintaining high safety standards.

Management provides a measured outlook

Management has flagged the uncertainty around the short term because of major volatility.

The combination of rising interest rates and increasing inflation has resulted in lower demand for steel, copper, and aluminium.

Ferrous prices were at a high of US$700 tonne in March FY22 but have subsequently dropped to between US$320 and US$400 per tonne at the start of FY23.

FY23 results will depend on how interest rates pan out but management advised its strong market position and strong balance sheet will help the business absorb the adverse impact of the short-term volatility.

Management also added structural macro trends like the global decarbonisation of steelmaking, rise in electric arc furnaces, and energy transition will act as strong tailwinds for recycled metal.

Sims share price snapshot

When metals prices were at all-time highs in April, the Sims share price rallied to a 12-month high of $22.64 per share.

However, since then, the Sims share price has taken a turn for the worse, sinking as low as $13.37 at the start of July.

Over the last 12 months, the Sims share price has fallen by 13%. Across the same period, the S&P/ASX 200 Index (ASX: XJO) has dropped by 6%.

The post Sims share price slips despite stellar growth in FY22 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Endeavour share price outperforms on Tuesday to smash new, all-time high
• Why is the Rio Tinto share price lagging the ASX 200 on Tuesday?
• ASX 200 shrugs off prospect of further rate rises revealed in RBA minutes
• Is the Bendigo Bank share price in the buy zone following Monday’s sell-off?
• SG Fleet share price rises on FY22 earnings increase

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. Motley Fool contributor Raymond Jang has no position in any of the stocks mentioned.

from The Motley Fool Australia https://ift.tt/2UMlbxD

1) The BHP Group Ltd (ASX: BHP) share price has jumped 4.5% higher to around $40.70 on Tuesday after the mining giant reported the second biggest profit in the company’s history. The mining giant declared a final dividend of $US1.75 bringing the full-year BHP dividend to $US3.25, nicely ahead of analyst consensus.

On a trailing basis, the BHP share price trades on a fully franked dividend yield of over 11% and a price-to-earnings (P/E) multiple of just six times earnings. No wonder BHP shares are jumping higher, although the BHP share price still remains down 11% over the past 12 months.

Looking ahead, BHP said, “growth momentum has slowed across many key regions, and caution remains due to geopolitical uncertainty as well as COVID-19.”

Profits and dividends are likely to be lower next year as costs rise and global growth slows, making the historical valuation metrics just that — historical. Still, absent a collapse in commodity prices, BHP shareholders are likely to bank nice fully franked dividends well into the future.  

With the Commonwealth Bank of Australia (ASX: CBA) share price looking downright expensive, and its dividend yield somewhat modest, it could be a case of BHP — despite its cyclicality — being a better dividend play than the banks going forward.  

2) Who’d be a stock picker in this current economic environment?

Are we heading for a recession? Hard or soft one?

Will the consumer put the brakes on discretionary spending, and by how much?

How high will inflation go, and therefore interest rates?

For some companies, comparisons to prior periods are virtually depending on whether we were on the COVID cycle.

Take Temple & Webster Group Ltd (ASX: TPW), the leading pure-play online retailer in the furniture and homewares market. Although it reported revenue growth of 31% for FY22, July trading is down 21% year over year, with August (to 14th) down 17%.

If I was a betting man, I’d have bet the Temple & Webster share price might have taken a turn south on today’s trading update.

And I’d have been wrong, big time. The Temple & Webster share price has soared more than 20% to $5.43 in Tuesday trading with investors seemingly taking a long-term positive view of the company’s prospects. Wonders will never cease…

Perhaps it’s that Temple & Webster said, “month-to-month seasonality suggests a return to double digit growth during FY23 once we finish lapping COVID lockdowns from the year before”.

Perhaps it’s that Temple & Webster has upgraded its EBITDA margin guidance for FY23 from 2%–4% to 3%–5%. 

Perhaps it’s that the Temple & Webster share price is down 60% from its September 2021 highs, and bargain hunters are out in force. The company is capitalised at $635 million of which $101 million is in cash.   

Long-term, Temple & Webster says the Australian furniture and homewares market significantly lags the online penetration of other countries such as the United States and United Kingdom. Compared to Wayfair, the US online market leader, Temple & Webster has the opportunity to almost treble its market share in the years ahead.

Retailing is tough. Selling discretionary items in a period of lower consumer confidence and higher interest rates is even tougher. Today’s jump in the Temple & Webster share price may be more a relief rally than anything else. It’s not one for me. 

3) For the past few months, I’ve been fishing around amongst the wreckage that is the bombed out recent-IPO sector.

Plenty of COVID beneficiaries rushed to market last year, taking advantage of once-in-a-generation trading conditions to raise a shedload of cash.

Good for them, but very unfortunate for shareholders who bought into long-term growth stories which ultimately turned out to last as long as COVID lockdowns.

The poster child for this might be Step One Clothing Ltd (ASX: STP), a direct-to-consumer online retailer selling men’s and women’s underwear. 

After a series of profit warnings, the Step One share price has collapsed from a high of $3 in November last year to trade at just 31 cents today, a devastating fall of 90%. 

Step One is not a company I’ll be buying. It operates in a very competitive market, and it relies on influencers and paid advertising on Facebook for its new customers, something that worked well in a locked-down world, but not so well now underwear is being worn, you know, under clothes again. 

Yet, Step One sports a market cap of $58 million, of which $27 million was in cash as at 30th April 2022. It is forecasting sales of $73 million for FY22 and EBITDA of around $8 million, albeit almost all that was earned in the first half of the year.   

By all measures, Step One shares look cheap. The company continues to talk a good game, with the Step One founder and CEO, Greg Taylor saying in May he remains confident in its  “unique product proposition” and is “laser focused on our long-term growth ambitions.”

Step One reports on Tuesday 23 August. Do you feel lucky? Like Temple & Webster shares today, I wouldn’t be surprised to see Step One shares jump higher. I’ll be watching, with interest, from the sidelines.

The post The BHP share price now trades on a fully franked dividend yield of 11% appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Everything you need to know about the latest BHP dividend
• Temple & Webster share price soars 21% on revenue lift
• BHP share price charges 5% higher on ‘better than expected result’
• BHP share price on watch amid record FY22 profits
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Bruce Jackson 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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/rwRUbBH

The Cobre Ltd (ASX: CBE) share price is soaring today on the back of a copper discovery.

The mining company’s share price lifted 40% in earlier trade before retreating. Cobre’s shares are currently trading at 19 cents apiece, a 26.7% gain. In comparison, the ASX 200 Materials Index is up 1.82% at the time of writing.

So what did the company report to the market today?

What did Cobre discover?

Cobre reported a new significant copper intersection at the Ngami Copper Project within the Kalahari Copper Belt in Botswana.

Drill hole NCP10 intersected with a “broad zone of visible copper mineralisation” extending 69 metres. This includes a 13m zone of chalcocite mineralisation.

The mineralisation is made up of chalcocite in veins, fracture fill, and breccias along with secondary chrysocolla, according to Cobre.

Cobre said the target now has a strike length of more than four kilometres.

Commenting on the news, chairman and managing director Martin Holland said:

We’re delighted with the results from the latest drill hole at NCP, which have significantly extended the known footprint of mineralisation over more than 4km.

Importantly, all the results so far indicate at the target remains open-ended to the northeast and is larger than previously anticipated.

The footprint of mineralisation now extends over 4km, which is in line with the largest known deposits in the Kalahari Copper Belt.

On 9 August, Cobre announced infill drilling had commenced at the Ngami Copper project.

Share price snapshot

The Cobre share price has shot up a massive 333% in the past month. In the past year, it has lifted 34%, while it’s 107% higher year to date.

For perspective, the ASX 200 Materials Index has shed more than 8% in a year.

Cobre has a  market capitalisation of about $39 million based on the current share price.

The post Cobre share price zooms 40% higher on new copper discovery appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Exploding 600% in a month, what is going on with the Cobre share price?
• Copper and cash: Why this ASX mining share is on ice today
• Guess which tiny ASX mining share just rocketed 74% on an ‘outstanding’ new copper find
• Guess which ASX mining share just exploded 100% on a new discovery

Motley Fool contributor Monica O’Shea 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.

from The Motley Fool Australia https://ift.tt/SfzI34r

The Sezzle Inc (ASX: SZL) share price is suffering on Tuesday following the release of the company’s half year earnings.

The ASX buy now, pay later (BNPL) share is currently trading at 73 cents, 10.98% lower than its previous close.

It opened at its intraday high of 80 cents – marking a 2.4% fall – and hit an intraday low of 67.5 cents shortly afterwards.

Sezzle share price plummets on half year results

Here are the highlights from the BNPL provider’s first half report:

• Net after tax loss of US$43.1 million – down from a US$30.4 million loss in the prior comparative period (pcp)
• Total income came to around US$56.9 million – up 6.5%
• US$869.6 million of underlying merchant sales – a 10.6% improvement
• 47,642 active merchants, up 18.1%
• 3.4 million active customers, up 18.2%
• Repeat usage lifted to 93.5%

In terms of credit quality, the company’s provision for uncollectable accounts fell 18.1% last half to US$18.4 million after it implemented a strategic shift to focus on profitability over top-line growth.

As a percentage of income, the provision for uncollectible accounts was 36.8% last half compared to 48.8% for the pcp.

Sezzle ended the period with around US$63.3 million in cash, cash equivalents, and restricted cash.

What else happened in the first half?

The major news from the BNPL favourite last half was of its proposed merger with Zip Co Ltd (ASX: ZIP).

The pair announced their plan to join forces in February, causing the Sezzle share price to jump 10%.

The companies ultimately ditched their merger plan following the half year’s end. Sezzle will receive a US$11 million payout from Zip following the deal’s abandonment.

What’s next?

Sezzle didn’t provide earnings guidance in today’s release. Though, it did make note of a number of cost-saving measures.

Sezzle undertook a workforce reduction in March with the aim to create annualised cost savings of approximately US$10 million. It also scaled back its international operations, which is expected to provide additional annualised cost savings of around US$7 million.

Finally, it restructured contracts with certain merchants and partners and phased-in Sezzle Premium – a subscription service for users to access large, non-integrated merchants for a fee.

The company believes such activities, along with its cash position, borrowing capacity, and certain cash flows, will allow it to meet its working capital and investment requirements beyond the next 12 months.

Sezzle share price snapshot

The Sezzle share price has joined most ASX BNPL providers in the red in 2022.

In fact, the stock has plummeted 76% since the start of this year. It’s also trading 91% lower than it was this time last year.

The comparison, the All Ordinaries Index (ASX: XAO) has fallen 7% in 2022 and 6% over the last 12 months.

The post Sezzle share price tumbles 11% as losses deepen appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is the Zip share price tumbling 6% on Tuesday?
• Why is the Sezzle share price surging 8% on Wednesday?
• Friend or foe? Could inflation give ASX BNPL shares a new lease on life?
• Sizzle, fizzle, pop! What’s with the Sezzle share price on Monday?
• Why IDP, PolyNovo, Sezzle, and St Barbara shares are pushing higher

Motley Fool contributor Brooke Cooper 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 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/fk532EG

The Rio Tinto Limited (ASX: RIO) share price is currently down around 0.3%. That compares to a 0.55% rise in the S&P/ASX 200 Index (ASX: XJO) at the time of writing.

The underperformance looks even more surprising when considering the BHP Group Ltd (ASX: BHP) share price is currently up by almost 5%.

However, BHP has just released its FY22 result so perhaps Fortescue Metals Group Limited (ASX: FMG) shares would be a better comparison. While Fortescue was down earlier, the Fortescue share price is currently up by 2%.

What has happened?

Yesterday, after the market had closed, Rio Tinto noted that Turquoise Hill Resources had terminated its review of Rio Tinto’s non-binding proposal to acquire full ownership of Turquoise Hill for C$34 cash per share.

Rio Tinto said it was disappointed by the decision. It pointed out that the offer represents compelling value, considering it’s a 32% premium to the Turquoise Hill closing share price of C$25.68 on 11 March 2022.

Since the proposal on 14 March 2022, the average share price performance of Turquoise Hill’s peers has declined by more than 35% in light of a “deteriorating and more uncertain external environment”.

On top of that, Turquoise Hill recently disclosed that it needs to raise more than US$1 billion of equity to address its current estimate of funding requirements.

Rio Tinto said it would remain “financially disciplined” as it considers its options. If a deal doesn’t happen, Rio Tinto said it “welcomes the continued investment by Turquoise Hill minority shareholders and their pro rata sharing of future risks and future obligations”.

The ASX mining share viewed this deal as important because it would lead to greater ownership of Oyu Tolgoi, a large copper mine in Mongolia.

Why was the offer rejected?

The special committee of independent directors of Turquoise Hill Resources said the offer didn’t “fairly reflect the fundamental and long-term strategic value of the company’s majority ownership of the Oyu Tolgoi project”.

The special committee utilised value analysis by TD Securities, which indicated the C$34 offer price was “well below” a range of values implied in TD’s preliminary analysis.

It noted that Rio Tinto has not improved its offer despite engagement between the parties.

Management comments

Rio Tinto chief executive of copper Bold Baatar said:

Rio Tinto remains as committed as ever to the long-term success of Oyu Tolgoi. While we are disappointed by this decision, we will continue to work constructively with the board of Turquoise Hill to advance the Oyu Tolgoi project.

Interim CEO of Turquoise Hill Resources Steve Thibeault said:

The underground project is advancing better than originally anticipated. We were able to start blasting the drawbells ahead of schedule and caving operations are progressing to the point where we expect to achieve sustainable production earlier than forecast.

Oyu Tolgoi is an attractive tier one asset, and we remain highly focused on and optimistic about its transformation into one of the world’s great copper mines, positioning Oyu Tolgoi to become a high-grade, low-cost, large-scale producer with a long mine life.

Rio Tinto share price snapshot

The Rio Tinto share price has fallen around 20% over the last six months.

The post Why is the Rio Tinto share price lagging the ASX 200 on Tuesday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX 200 shrugs off prospect of further rate rises revealed in RBA minutes
• Is the Bendigo Bank share price in the buy zone following Monday’s sell-off?
• SG Fleet share price rises on FY22 earnings increase
• Seek share price slides despite NPAT soaring 81%
• Challenger share price tumbles 10% on FY22 profit woes

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. 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.

from The Motley Fool Australia https://ift.tt/suA0LMO

The S&P/ASX 200 Index (ASX: XJO) is up 0.7% heading into the lunch hour.

The ASX 200 slid immediately following the release of the Reserve Bank of Australia’s minutes. But it’s since recouped that lost ground as investors appear more tuned into company earnings season than inflation concerns today.

Two weeks ago, the RBA hiked rates for the fourth consecutive month in a row. That followed on a period of more than 10 years without a single increase. A period where inflation was often said to be ‘stubbornly illusive’.

With the latest 0.50% increase, Australia’s official cash rate now stands at 1.85%. The interest rate on Exchange Settlement balances, lifted by 0.50% on 2 August, is now at 1.75%.

The ASX 200 is up 1.5% since the 2 August rate hike announcement.

Here’s what today’s minutes reveal.

Rising inflation top concern

RBA board members noted that inflation in many nations had reached the 7% to 10% range.

The board expected inflation in Australia to peak later and higher than it previously thought, but added that “measures of longer-term inflation expectations had declined”.

The RBA’s new forecast sees inflation hitting around 7.75% by the end of 2022, with wages growth starting to pick up.

With rising costs and falling dwelling prices, the board reduced its outlook for GDP growth in Australia in 2022. It now expects GDP growth of 3.25% in 2022 and 1.75% in 2023 and 2024.

Board members noted that inflation in Australia was at its highest level since the early 1990s, and well above the RBA’s 2% to 3% target range.

It was uncertain how much high inflation and increases in interest rates might weigh on consumption, “especially given the robust state of the labour market and accumulated savings”.

As RBA governor Philip Lowe noted earlier this month, the minutes reveal that the central bank expects inflation to peak later in 2022 before falling back to the high end of its target range (some 3%) by the end of 2024.

What can ASX 200 investors expect from the bank next?

According to the minutes:

The increase in interest rates over recent months has been required to bring inflation back to target by ensuring that inflation expectations remain anchored and establishing a more sustainable balance of demand and supply in the Australian economy.

As for what lies ahead, ASX 200 investors can take some comfort in the RBA’s assertion it aims to bring inflation in line while keeping “the economy on an even keel”:

The board expects to take further steps in the process of normalising monetary conditions over the months ahead, but it is not on a pre-set path. It is seeking to do this in a way that keeps the economy on an even keel. The path to achieve this balance is a narrow one and subject to considerable uncertainty.

The post ASX 200 shrugs off prospect of further rate rises revealed in RBA minutes appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is the Bendigo Bank share price in the buy zone following Monday’s sell-off?
• SG Fleet share price rises on FY22 earnings increase
• Seek share price slides despite NPAT soaring 81%
• Challenger share price tumbles 10% on FY22 profit woes
• Temple & Webster share price soars 21% on revenue lift

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.

from The Motley Fool Australia https://ift.tt/YmFZ2Qu

If you’ve invested in BHP Group Ltd (ASX: BHP) shares, then you might want to read a little further about the company’s latest dividend.

The mining giant dropped its full-year results this morning, and it didn’t disappoint.

BHP achieved double-digit growth across its key financial metrics on the back of a solid underlying and cost performance.

At the time of writing, shares in the world’s largest miner are up 4.59% to $40.70 apiece.

Let’s take a look at the latest dividend from the company.

BHP boosts final FY22 dividend

The BHP board declared a final dividend for FY22 of US$1.75 per share.

This brings the total FY22 dividend to US$3.25 per share, an increase of 8% compared to FY21’s full-year dividend.

The company has a 50% minimum payout policy. The cash dividend announced today is equivalent to a 77% payout ratio.

In total, record dividends of US$36 billion (US$7.11 per share) have been determined for FY22.

The ex-dividend date for the final dividend falls on 1 September, with payment following on 22 September 2022.

What about the FY23 dividend?

While BHP didn’t give any guidance to its dividend for FY23, we take a glimpse at what one broker thinks.

US-based investment firm Goldman Sachs believes the miner will cut its dividend to US$2.64 in FY23.

This will then be followed by US$2.02 in FY24.

Goldman Sachs’ estimates are being driven by the expectation that iron ore prices will decline over the coming years.

This has already been occurring of late, with the steel-making ingredient currently fetching US$109.50 per tonne. That’s a significant drop from when it was going for US$160 per tonne in March this year.

BHP share price snapshot

Over the last 12 months, the BHP share price has sunk by 12%, but is up 10% in 2022.

It’s worth noting the company’s shares touched a year-to-date low of $35.83 on 15 July before sharply rebounding.

Based on today’s price, BHP commands a market capitalisation of $205 billion and has a trailing dividend yield of 11.81%.

The post Everything you need to know about the latest BHP dividend appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• BHP share price charges 5% higher on ‘better than expected result’
• BHP share price on watch amid record FY22 profits
• 5 things to watch on the ASX 200 on Tuesday
• 2 ASX 200 dividend shares analysts rate as buys
• Looking to buy BHP shares? Here’s what to watch when the mining giant reports this week

Motley Fool contributor Aaron Teboneras 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.

from The Motley Fool Australia https://ift.tt/LP4fN6Y

The S&P/ASX 200 Materials Index (ASX: XMJ) is up 1.77% so far on Tuesday, but this one ASX mining share is soaring far higher.

The Gascoyne Resources Limited (ASX: GCY) share price has surged 30% and is currently trading at 35 cents.

Let’s take a look at what this ASX mining share announced this morning.

Why is this ASX mining share lifting?

Investors appear to be reacting positively to a significant high-grade gold discovery at the company’s Dalgaranga Gold Project in Western Australia.

Drilling to the western flank of the Gilbey’s North prospect revealed a new “record intercept” and confirmed a new high-grade lode discovery.

The new results included:

• 59m at 12.5 grams per tonne (g/t) gold from 139m including 13m at 51.1g/t
• 39m at 3.09g/t gold from 99m and 20m at 1.12g/t gold from 156m

Commenting on the news, CEO and managing director Simon Lawson said:

It’s not every day that you see results like this in the WA gold sector and we are incredibly excited by the potential of this newly discovered lode system on the western edge of the Gilbey’s North discovery.

The power of a good geology team and a great drill crew being brought to bear on a fertile high-potential mineral system is immense.

Previously, the company has reported intercepts including 32m at 8.58 g/t gold from 167m, and 54m at 6.55g/t gold from 116m at the “Never Never” Iode.

A mineral resource estimate (MRE) is now taking place, with its release earmarked for late this month.

Share price snapshot

The Gascoyne share price has climbed nearly 3% in the past year, while it has surged 22% year to date.

In the past month, the company’s share price has lifted 52%.

For perspective, the ASX 200 Materials Index has lost nearly 8% in a year.

This ASX mining share has a market capitalisation of around $145 million based on the current share price.

The post Guess which ASX mining share just exploded 30% on a new gold discovery appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is the Bendigo Bank share price in the buy zone following Monday’s sell-off?
• Seven West Media share price tumbles 5% on full-year earnings
• This stock is beating amazon at its own game
• SG Fleet share price rises on FY22 earnings increase
• The 4DS Memory share price just crashed 65%. What happened?

Motley Fool contributor Monica O’Shea 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.

from The Motley Fool Australia https://ift.tt/tuBD4UQ