Tag: Motley Fool

Owners of Westpac Banking Corp (ASX: WBC) shares might be in for a good run, with one top broker predicting the bank will pay out 10% more in dividends in financial year 2023 than it did in financial year 2021.

It’s also tipping the bank will up its full-year payouts by 5.9% in financial year 2022.

Right now, Westpac shares are swapping hands for $21.93, 0.16% lower than they were at Friday’s close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also down 0.06% today while the S&P/ASX 200 Financials Index (ASX: XFJ) has slumped 0.22%.

So, what could the future hold for the big four banking giant’s dividends? Let’s take a look at what Morgan Stanley thinks.

Westpac dividends and share price to lift: broker

As one of the ASX 200’s biggest bank shares, Westpac is known to be a relatively strong dividend payer. Indeed, it’s been paying investors a portion of its profits since the early 1980s.

And its full-year payouts could be gearing up to leap over the coming two financial years.

While most ASX companies wrap up their financial years at the end of June, Westpac’s doesn’t end until 30 September.

That means the last full-year payout we have to reference is that of financial year 2021, which saw the bank offering $1.18 of dividends per share.

With that in mind, Morgan Stanley thinks the market could be in for a surprise when Westpac releases its full-year earnings in November.

The broker expects Westpac to offer $1.25 per share in dividends this financial year, as my Fool colleague James reports.

Its full-year dividends are tipped to rise once more in financial year 2023 to reach $1.30. That’s a whopping 10.1% higher than that of financial year 2021.

Though, that’s still less than the $1.74 offered to shareholders in financial year 2019.

Morgan Stanley has also slapped Westpac’s shares with a $22.30 price target and an outperform rating.

The post Own Westpac shares? This broker expects the bank’s dividends to surge 10% by FY23   appeared first on The Motley Fool Australia.

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More reading

• 2 ASX dividend shares that experts rate as buys
• Can Westpac shares deliver a competitive dividend yield and 20% upside in FY23?
• Broker says Westpac share price ‘offers the most upside of the banks’
• How are ASX 200 bank shares responding to the RBA rate increase?
• 5 things to watch on the ASX 200 on Tuesday

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Block Inc (ASX: SQ2) shares are posting a strong comeback today after selling off sharply on Friday.

Block shares closed 7.8% lower on Friday following the release of the ASX buy now, pay later (BNPL) share’s second quarter financial results.

Among those results, the global payments provider, which acquired Afterpay in January, reported a 6% year-on-year fall in total quarterly revenue of US$4.4 billion.

While quarterly gross profit was up 29% year on year to US$1.47 billion, Block recorded net loss of US$208 million and said it expected growth to slow in the current quarter (Q3).

While that saw investors hit the sell button on Friday, in trade today, Block shares are up 6.01% to $125.41.

Can Block maintain growth and profitability?

Addressing the outlook for Block shares in a post-Q2 earnings call, Block CFO Amrita Ahuja said the company will significantly scale back planned growth investments in light of potential uncertainties ahead.

According to Ahuja (lightly edited for readability):

Moving to our planned investments for the third quarter and remainder of the year, while gross profit trends have been healthy through July, we recognise the importance of exercising discipline with our investments as we enter a period of potential uncertainty.

As a result, we’re reducing our planned investments for the full year 2022 by US$250 million. We pulled back on experimental and less efficient go-to-market spend, adjusted risk loss estimates based on more current trends, and slowed the pace of hiring.

Responding to a question from Tien-Tsin Huang from JP Morgan regarding how Block is balancing growth efforts and profitability, Ahuja said:

We are continuing to invest given the vast market opportunities we see. But we also recognise that the environment has changed and we’re prepared to adapt to uncertainty and maintain discipline by pulling back on some of the discretionary operating expenses, particularly those that are less efficient.

So, our actions today show that we’re also focused on demonstrating greater near-term profitability as we head into what could be a more volatile macro environment.

In only the first six months here this year, we pulled back on our full year opex [operational expenditure] by 8%, or US$450 million, US$250 million of which came today across three primary areas: sales and marketing; risk loss, which as you know is both an input and an output for us; and hiring.

This shows how we can dial our knobs in real time and be disciplined.

How have Block shares been tracking?

Block shares have struggled this year, alongside the wider BNPL industry.

Since listing on the ASX on 20 January, the Block share price is down 29%. For context, the S&P/ASX 200 Index (ASX: XJO) is down 5% over that same period.

The post ‘The environment has changed’: Can Block shares maintain growth AND profitability into 2023? appeared first on The Motley Fool Australia.

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More reading

• Could Afterpay’s global ambitions threaten the future of Zip shares?
• These are the 10 most shorted ASX shares
• Why Amcor, Arafura, Block, and Janus Henderson shares are dropping
• Did Zip really outgrow former ASX favourite Afterpay in the June quarter?
• Block share price tumbles 6% as quarterly earnings sink

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

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The Qantas Airways Ltd (ASX: QAN) share price is in the red today, down 1.19%.

Qantas shares are lower in early afternoon trade but the company is not the only ASX travel share down so far today. The Flight Centre Travel Group Ltd (ASX: FLT) share price is sliding 1.79% while Webjet Ltd (ASX: WEB) shares are descending 1.55%. The S&P/ASX 200 Index (ASX: XJO) is also down slightly, 0.07% lower at the time of writing.

Let’s take a look at what is going on at Qantas.

Managers asked to work as ground handlers

Qantas is recruiting 100 managers and executives to work as ground handlers, The Australian reported.

The staff are to work in roles including sorting baggage and moving luggage onto the tarmac for up to three months.

In a memo to staff cited by the publication, chief operating officer Colin Hughes said:

During your time in the contingency program, you’ll be an embedded resource within the ground handling partners.

This means you’ll receive a roster, be scheduled to operate and be supervised and managed in the live operations by our grand handling partners.

In a market update in late June, Qantas revealed it has hired more than 1,000 operational team members and hundreds more contact centre staff since April. Qantas has received plenty of publicity in recent weeks amid ongoing flight cancellations and staff shortages.

Meanwhile, a Qantas plane was grounded on Sunday after air traffic control received reports of “flames and smoke” coming from the engine.

However, engineers later determined the emergency to be a false alarm, according to Nine. A Qantas spokesperson told the publication:

The pilots followed procedure and shut down the engine as a precaution after being alerted by the control tower while taxiing.

Engineers have inspected the aircraft and cleared it to return to service.

Last week, analysts at UBS maintained a buy rating on the Qantas share price with a $6.55 price target. This represents an almost 44% upside on the current share price of $4.56.

The broker sees value in the company’s shares if the economy avoids a recession.

Qantas share price snapshot

The Qantas share price has slipped less than 1% in the past year while it is down more than 9% year to date. In comparison, the ASX 200 benchmark has lost 7% in the past year.

Qantas has a market capitalisation of about $8.58 billion based on the current share price.

The post Qantas share price descends as management recruited for ground-handling work appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Why Core Lithium, European Lithium, Incannex, and Qantas shares are pushing higher
• ‘Higher costs and lower capacity’: Why this broker tips the Qantas share price to nosedive
• Are Qantas shares worth buying ahead of this month’s earnings result?
• Why is Rex smashing the Qantas share price on Tuesday?

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 recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Yet again, the Mesoblast Limited (ASX: MSB) share price will remain frozen on Monday.

This comes as the company requested that its shares be voluntarily suspended from trading, effective before market open today.

The biotech company’s shares last exchanged hands at 93 cents apiece on Wednesday 3 August.

What’s the latest with the Mesoblast share price?

Investors will need to wait a little longer before the Mesoblast share price reopens for trading on the ASX.

According to the release, the company is still undergoing its capital raising and needs more time to complete the process.

Mesoblast shares have rebounded strongly in recent times after extreme volatility hit the broader market from early June to July.

In the past month, the company’s shares are up 12%.

Mesoblast has asked that the voluntary suspension remain in place until Wednesday 10 August or following the release of the announcement, whichever comes first.

How much does Mesoblast have in the bank?

No details have been given in regards to what Mesoblast is intending to raise the funds for.

However, we do know from its quarterly report that the company had US$60.4 million in cash as of 30 June.

In addition, there was also US$40 million available to be drawn down from its existing financing facilities, subject to conditions.

With net cash used from operating activities of US$13.8 million, Mesoblast has an estimated 7.2 quarters of funding available

Mesoblast rexlemestrocel-L update

In mid-July, Mesoblast provided results from its phase 3 trial of rexlemestrocel-l in 565 patients suffering from chronic heart failure.

Management noted it received positive results from patients with class II/III chronic heart failure with reduced ejection fraction.

In particular, a single dose of rexlemestrocel-L along with standard of care reduced the incidence of heart attacks or strokes by 65%.

Furthermore, a 68% reduction was recorded in the rate of recurrent hospitalisations from non-fatal heart attacks or strokes compared with controls.

About the Mesoblast share price

Over the past 12 months, Mesoblast shares have tumbled by 53% following weakened investor sentiment.

Mesoblast has a price-to-earnings (P/E) ratio of 2.16 and commands a market capitalisation of roughly $604.92 million.

The post Why is the Mesoblast share price still not moving today? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• Why is the Mesoblast share price on ice today?
• Why did the Mesoblast share price rocket 54% in July?
• 3 ASX All Ordinaries shares leaping 10% or more today
• Why JB Hi-Fi, Mesoblast, Pendal, and Woodside shares are pushing higher

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.

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The Medical Developments International Ltd (ASX: MVP) share price is drifting deep into the red in early trade on Monday.

At the time of writing, the share trades 17% lower at $1.99 following the release of a company announcement.

What did Medical Developments announce?

The company advised it has successfully completed the institutional components of its planned fully-underwritten $30 million capital raising.

The 1 for 9.5 pro-rata entitlement offer raised $5 million in tranches of an institutional placement and entitlement offer. The company reported good support from existing shareholders.

Meanwhile, the underwritten placement raised approximately $15 million, with a total of 7.5 million new shares issued.

Medical Developments announced the funding round last week. It plans to put the funds towards the company’s expansion into Europe, the Australian ambulance sector, and investment directly into the business.

It now intends to raise a further $10 million through a retail entitlement offer. The offer will open on 11 August and run until 25 August 2022.

Speaking on the announcement, Medical Developments chair Gordon Naylor said:

I would like to thank our shareholders for their support and welcome our new investors onto the MVP share register. Their strong funding support will enable our investment to continue executing on our European and Australian growth strategies.

Further developments will likely be released closer to 25 August when the retail entitlement offer is set to close.

In the last 12 months, the Medical Developments share price is down more than 52%, and 60% this year to date.

The post Here’s why the Medical Developments share price is sinking 17% on Monday appeared first on The Motley Fool Australia.

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More reading

• Medical Developments share price halted amid ‘significant near-term opportunities’

Motley Fool contributor Zach Bristow 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 Medical Developments International Limited. The Motley Fool Australia has recommended Medical Developments International Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Novonix Ltd (ASX: NVX) share price is down in morning trade on Monday despite no news having been released by the company.

Right now, stock in the battery materials and technology supplier is swapping hands for $3.05 apiece after slumping as low as $2.92 in early trade.

For context, the S&P/ASX 200 Index (ASX: XJO) is also in the red today, falling 0.28%, while the S&P/ASX 200 Information Technology Index (ASX: XIJ) has slipped 0.36%.

So, what’s going wrong for the Novonix share price today? Let’s take a look.

What’s weighing on the Novonix share price?

Despite the company’s silence, the Novonix share price is handing back some of its recent gains on Monday.

The stock surged a whopping 13.65% on Friday to mark its highest closing price in eight weeks at $3.08. Like today, there was no news at the time to explain its rise.

However, Novonix’s exceptional day in the green on Friday might explain the losses it’s posting today. It could be a simple case of profit-taking.

And while the stock appeared to overcome a near-two-month lull last week, it’s still a long way from its recent peaks.

The Novonix share price reached an all-time high of $12.47 in December 2021. It’s currently trading 76% lower than it was back then.

But additional respite (or further falls) could come soon enough.

The market expects to hear from the ASX 200 tech stock later this month when it releases its annual report. That’s set to drop on 25 August.

The post Why is the Novonix share price having such a lousy start to the week? appeared first on The Motley Fool Australia.

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• These 3 ASX tech shares had a cracking day on the ASX today
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• Why is the Novonix share price leaping 12% on Friday?
• Here are the top 10 ASX 200 shares today
• Why did the Novonix share price notch up a 24% gain in July?

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 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.

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The Mayne Pharma Group Ltd (ASX: MYX) share price is up 4.48% on Monday morning amid news the company has received US regulatory approval.

Shares of Mayne Pharma are currently trading at 35 cents each after opening at 33.5 cents a share this morning.

That’s currently beating the S&P/ASX 200 Index (ASX: XJO) which is down 0.28%. Meantime, the S&P/ASX 200 Healthcare Index is 0.47% lower.

Let’s check the news from Mayne this morning.

What did Mayne Pharma announce?

Mayne Pharma Group and its Belgian partner Mithra Pharmaceuticals have been granted Food and Drug Agency (FDA) approval for a hormonal contraceptive ring for women that aims to reduce the likelihood of pregnancy.

The device, Holoette, contains the medications etonogestrel and ethinyl estradiol for its contraceptive effects.

It will be a generic alternative to Nuvaring that was approved by the FDA in October 2001.

Nuvaring and other corresponding products on the US market achieved approximately US$580 million in sales for the 12 months ended June 2022.

Mayne Pharma CEO Scott Richards said:

We are very pleased to announce the approval of Haloette in the US and look forward to bringing this drug-device generic to market. Mayne Pharma is proudly committed to providing women with more affordable and accessible contraceptive choices.

The device is the company’s third regulatory product approval with its development partner Mithra.

Mithra’s role is to develop and manufacture Haloette in its facility in Belgium. According to their contract, Mayne Pharma will pay six million euros to the company now the device has received FDA approval. It will pay another 1.6 million euros when the product is sold in the United States.

Mayne Pharma expects that the new contraceptive device will launch in early 2023.

Mayne Pharma share price snapshot

Mayne Pharma shares have gained 17% since the start of 2022 and 13% in the past year.

That’s far outperformed the broader healthcare index. It’s dropped almost 3.2% year to date and 5% since this time last year.

The company’s shares have now gained 21% in just the last month, giving Mayne a current market capitalisation of $608 million.

The post Mayne Pharma share price lifts on FDA approval appeared first on The Motley Fool Australia.

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More reading

• Why is the Novonix share price having such a lousy start to the week?
• Everyone is talking about this stock. Is it a good long-term option?
• Guess which little-known ASX share has soared 110% in 2 days
• Why is the Copper Mountain share price surging 30% on Monday?
• Aurizon share price slips as dividend is cut by 24%

Motley Fool contributor Matthew Farley 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.

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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.

Last month Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) executed a 20-for-1 stock split. In the months leading up to it as well as in the weeks that followed, there has been increased investor discussion about the tech giant. One of the questions being asked is whether Google’s parent company is still a good long-term option for investors? 

I think it could be a good bet over the long haul — the technology company is experiencing solid growth from its core business, and its stock is trading at a better price than in the recent past thanks to 2022’s tech stock sell-off. Let’s take a closer look at why investors should consider buying Alphabet’s stock right now. 

Alphabet’s advertising strength

Alphabet’s total revenue increased by 13% in the most recent quarter (reported on July 26) to $69.7 billion. And while that was slower than pandemic-induced revenue growth in 2021, the company is still a revenue-generating machine in a fast-growing ad market. 

The bulk of Alphabet’s sales come from Google’s advertising business (which includes Google Search, YouTube ads, and the Google Network). In the second quarter sales from this segment grew by 11.5% year over year to $56.3 billion. 

This growth looks even better when you consider that Alphabet has more opportunities to expand in the digital ad market. Some estimates put the global advertising market size at $876 billion in 2026, up from $602 billion this year. 

Alphabet is already a leader in the digital advertising space — it takes the top spot ahead of Meta Platforms, Alibaba, and Amazon in the U.S. — and as the market continues to expand, Alphabet has the potential to expand right along with it. 

Alphabet shares are trading at a discount right now 

You may have noticed that the stock market has been a bit volatile lately, and tech stocks, in particular, have suffered. The tech-heavy Nasdaq Composite index is down 19.5% year-to-date, and Alphabet’s shares have fallen roughly the same amount.  

While that drop isn’t great in the short-term, for long-term investors it’s providing an opportunity to buy Alphabet’s stock at a relative discount. The chart below shows Alphabet’s price-to-earnings over the past several years, with Alphabet’s most recent P/E ratio much lower than in the recent past. 

GOOGL PE Ratio data by YCharts.

When buying a stock, getting it at a relative discount is obviously preferable. With the tech sector down right now and Alphabet’s shares down along with it, investors can snatch up Alphabet shares at a discount.

Alphabet has money to weather an economic storm

It’s important to point out that if the U.S. economy does enter a significant downtown, investors won’t have to worry about Alphabet’s ability to push through it. 

Alphabet has a highly profitable business that generated $12.6 billion in free cash flow in the most recent quarter, and $65 billion over the trailing 12 months. The company’s balance sheet is also in very solid shape, with Alphabet ending the quarter with $125 billion in cash and investments. 

While no company is immune to downturns, this cash would allow Alphabet to continue to paying its debts while also being able to invest in its products and services. 

Don’t forget this is a long-term play

Over the past month or so the tech sector has had a bit of a resurgence, along with Alphabet’s stock. And while that’s good to see, don’t forget that buying shares of Alphabet and holding onto them for at least five years (or more!) is where long-term investing really pays off. 

There will likely be some more share price volatility as investors process new economic data and investors continue to process news about inflation and a potential economic slowdown. 

But with Alphabet already in a very strong position in the advertising space and the company’s shares cheaper than they’ve been in years, this tech stock looks like it could still be a long-term winner. 

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

The post Everyone is talking about this stock. Is it a good long-term option? appeared first on The Motley Fool Australia.

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More reading

• 2 important investing metrics you won’t find on a financial statement
• What’s in store for the BetaShares NASDAQ 100 ETF in the next 12 months?
• Down 23%, should investors buy Alphabet before its stock split?
• Better advertising stock: Alphabet vs. Amazon
• GameStop finally announced its stock split. The MOASS still isn’t coming

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors.  Chris Neiger has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Cardno Limited (ASX: CDD) share price is pushing well into the green today as investors rally the share to its highest mark since 7 July.

At the time of writing, the ASX share is trading more than 37% higher on the day at 89.5 cents apiece, bringing its gains from last Thursday’s close to more than 110%.

What’s driving this ASX share higher?

On 30 June, the company completed the sale of Cardno International Development to DT Global Australia Pty Ltd.

It confirmed the first tranche of the distribution was paid on 14 July to Cardno shareholders. This comprised of a capital return of $9.4 million or 24 cents per share and an unfranked dividend of 78 cents per share.

The company then announced last week that the second tranche of the distribution is expected to be paid in two parts – first on 22 August, with the balance of this settled by September 2022.

It now has to figure out what the next steps will be after finalising the remaining distribution payments from the Cardno International Development sale.

Noteworthy, however, is that the company is set to wind down its wholly-owned subsidiary, Sustentable, formerly known as Caminosca.

This business [Sustentable] is involved in a number of court actions that may lead to between US$0 and US$15 million of recoveries and has between US$0 and US$200 million of contingent liabilities depending on the outcome of various legal actions.

The Cardno Board has received advice that it is unlikely that these contingent liabilities will affect the listed Cardno holding company, but that they may affect the potential for future recoveries from this wind down business. There remain costs associated with these legal actions.

Further updates are expected in the coming weeks to months per the language in the report.

In the meantime, the Cardno share price is down 91% in the past 12 months.

The post Guess which little-known ASX share has soared 110% in 2 days appeared first on The Motley Fool Australia.

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• Mayne Pharma share price lifts on FDA approval
• Everyone is talking about this stock. Is it a good long-term option?
• Why is the Copper Mountain share price surging 30% on Monday?
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Motley Fool contributor Zach Bristow 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.

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The Copper Mountain Mining Corporation (ASX: C6C) share price is off to the races today, up 30%.

The ASX copper share closed on Friday trading for $1.66 and is currently trading for $2.16.

Here’s what looks to be piquing ASX investor interest.

What’s driving the ASX copper share higher?

With no fresh news out, the Copper Mountain share price looks to be joining in with the broader rally among ASX copper shares.

The Sandfire Resources Ltd (ASX: SFR) share price, for example, is up 8% at the time of writing.

And copper mining focused giant Oz Minerals Limited (ASX: OZL), with a market cap north of $8.5 billion, is soaring an eye-popping 35%.

So, why is the Copper Mountain share price soaring alongside the other ASX copper shares?

The answer lies with Oz Minerals.

This morning Oz Minerals reported that it had rejected a takeover offer from BHP Group Ltd (ASX: BHP).

In an unsolicited, conditional and non-binding indicative proposal, BHP sought to acquire Oz Minerals for $25 per share in cash. Oz Minerals shares closed on Friday trading for $18.92 and have now leapt above BHP’s offer price to trade for $25.60.

Oz Minerals’ board unanimously rejected BHP’s takeover proposal, saying the offer undervalued its shares and wasn’t in the best interests of shareholders.

Commenting on the decision to reject the offer, Andrew Cole, Oz Minerals CEO said:

We have a unique set of copper and nickel assets, all with strong long-term growth potential in quality locations. We are mining minerals that are in strong demand particularly for the global electrification and decarbonisation thematic and we have a long-life Resource and Reserve base. We do not consider the proposal from BHP sufficiently recognises these attributes.

While still trading well above pre-COVID levels, copper prices have come down from highs of US$10,674 per tonne in early March this year to US$7,781 today. The red metal dipped as low as US$7,170 in mid-July.

But with a longer-term horizon in mind, the Oz Minerals board clearly believes those prices will come back up. And that’s certainly been good news for Copper Mountain shareholders today.

Copper Mountain share price snapshot

Despite today’s big bounce, the Copper Mountain share price remains down 42% in 2022, compared to a year-to-date loss of 9% posted by the All Ordinaries Index (ASX: XAO).

The post Why is the Copper Mountain share price surging 30% on Monday? appeared first on The Motley Fool Australia.

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More reading

• The OZ Minerals share price is rocketing 35% after BHP bid
• BHP share price lifts as $8.3b takeover bid rejected
• OZ Minerals share price on watch after miner rejects BHP’s $25 per share takeover offer
• BHP share price has ‘drifted into attractive value territory’ with 25% upside: broker
• The iron ore price has slumped 10% in 5 days. Here’s how ASX 200 mining shares have responded.

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.

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