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The BHP Group Ltd (ASX: BHP) share price has historically been influenced by the price for iron ore. But another commodity could soon have an important role to play.

BHP may be best known as an iron ore miner, however, it has exposure to other commodities such as copper and nickel.

According to reporting by the Australian Financial Review, BHP Nickel West (owned by BHP) is going to spend more on exploration than it has in the past 15 years.

The reason for the ramp-up is the strong demand for electric vehicles. This could mean good things for nickel.

Untapped resource

The asset president of BHP Nickel West, Jessica Farrell, made some promising comments at the Diggers and Dealers mining conference this week.

Farrell said:

We have a large nickel sulphide resource with in excess of 7.4 million tonnes of nickel in the Agnew-Wiluna belt that still remains largely unexplored.

That’s exciting. We have budgeted a significant uplift in exploration spend over the next two years, which we expect will advance many of our targets. To underscore this point, this year will be the highest annual spend for exploration in Nickel West since BHP acquired the WMC assets in 2005, a testament to the focus and commitment BHP has to its nickel business right now.

According to reporting by the AFR, BHP has 120,000 hectares of tenements within the Agnew-Wiluna belt in WA. Farrell continued:

This is a highly prospective strip, approximately 150 kilometres long … and has a number of deposits that we are looking to understand further and potentially mine.

Our acquisition of the Honeymoon Well and Albion Downs tenements in 2020 continues to drive our growth plans and drilling to inform our mine studies.

Global outlook

Some of the major car companies like Tesla and Ford have reportedly signed agreements with some Australian miners, including BHP. The company has also signed agreements with Toyota.

The AFR reported that Russia supplies around a fifth of battery-grade nickel globally, with its supply disrupted due to the invasion of Ukraine.

Yet, the demand for nickel is expected to keep rising. This could be helpful for the BHP share price.

Farrell said:

Electrification of autos is gathering pace, and we expect that by 2030, around 60 per cent of all car sales will be electric. We expect that by 2040, 90% of car sales will be electric. The dominant battery chemistry powering this global fleet is expected to rely on nickel.

Latest nickel update

BHP said that in the three months to 30 June 2022, nickel production was up 1% to 18.8kt. There was higher volume due to reduced COVID-19 labour impacts.

The resources giant also said that the nickel price in FY22 was 43% higher than FY21.

Production in FY23 is expected to be between 80kt to 90kt, weighted to the second half of the year due to planned smelter maintenance in the first half.

BHP share price snapshot

Over the last month, the BHP share price has fallen around 3%.

The post Looking to buy BHP shares? Here’s how the miner is gearing up to secure its share of booming EV demand appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• Broker names 3 of the best ASX shares to buy in August
• Is the iron ore price entering a bear market?
• Why did the BHP share price slump 6% in July when the ASX 200 leapt higher?
• Why is the Fortescue share price sliding on Tuesday?

Motley Fool contributor Tristan Harrison 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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If you’re looking for ASX dividend shares to buy, then the two listed below could be worth considering.

Here’s what you need to know about these dividend shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is this footwear focused retailer.

Accent, which owns a growing collection of store brands such as Athlete’s Foot, HYPEDC, Platypus, Sneaker Lab, and Stylerunner, is having a tough time in FY 2022. This has led to its shares being hammered since the start of the year.

While this is disappointing, the team at Bell Potter appear to believe this could be a buying opportunity. They recently put a buy rating and $1.90 price target on the retailer’s shares. The broker commented:

We rate AX1 Buy with a PT of $1.90. AX1’s strategic focus has moved from acquisition and integration, to innovation in its core business and expansion through new concepts. AX1 has a leading omni-channel capability with TAF, Platypus, Skechers, Hype, The Trybe, Stylerunner and Glue Store as its key retail footwear or youth apparel platforms. Through a “high service & more tailored” market position, AX1 seeks to achieve greater differentiation vs peers as well as create perceived value across its retail platforms.

As for dividends, Bell Potter is forecasting fully franked dividends of 5.7 cents per share in FY 2022 and then 9 cents per share in FY 2023. Based on the current Accent share price of $1.33, this will mean yields of 4.3% and 6.8%, respectively.

QBE Insurance Group Ltd (ASX: QBE)

Another ASX dividend share that could be in the buy zone is QBE.

After a difficult period, this insurance giant’s outlook is starting to look very positive again, This is thanks to rising rates, premium increases, and its cost cutting plans.

Morgans is very positive on QBE and recently retained its add rating and $14.76 price target on the company’s shares. It commented:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~9.1x FY23F PE.

In respect to dividends, the broker is forecasting 41.6 cents per share in FY 2022 and 66.6 cents per share in FY 2023. Based on the current QBE share price of $11.76, this will mean yields of 3.5% and 5.7%, respectively.

The post Brokers name 2 top ASX dividend shares to buy appeared first on The Motley Fool Australia.

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More reading

• Morgans names 3 more of the best ASX shares to buy in August
• I think these 2 ASX dividend shares are buys for income in August
• 2 quality ASX dividend shares rated as buys by brokers
• 5 ASX 300 shares this fundie has been buying at bargain prices
• Expert prediction: 3 ASX 200 shares that can ‘do well’ in volatile times

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. 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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So interest rates have spiked up for the fourth consecutive month this week.

This means Australians will be locking up their wallets and cutting out any unnecessary spending.

In such times, investors understandably turn to ASX shares of companies that produce consumer staples.

And the very prototypes of necessities are food and drinks.

But Shaw and Partners portfolio manager James Gerrish warns that one can’t just blindly buy all consumer staple ASX shares and expect success.

You still need to look at the company’s performance and prospects.

Firstly, the stock to stay away from

Gerrish took United Malt Group Ltd (ASX: UMG) as an example.

“As an investor it’s easy to use the old throwaway line ‘people have to eat’ when considering some defensive positions within a portfolio,” he said in a Market Matters newsletter.

“But like all stocks a company needs to grow earnings to deliver results to shareholders.”

United Malt has been a bitter disappointment to shareholders in recent times.

“UMG has failed to deliver, resulting in its shares trading well below its panic COVID lows whilst the S&P/ASX 200 Index (ASX: XJO) has rallied ~60% over the same period.”

The malt maker put out an earnings upgrade on Monday that saw its share price plunge a painful 13% that morning.

“The company has struggled with poor quality/high-cost North American barley which is flowing down into higher production costs and falling margins — never a good combination,” said Gerrish.

“The business is optimistic about an improvement in H2. But hope doesn’t pay the bills!”

The Market Matters team would avoid United Malt shares like the plague.

So which are the consumer staple stocks that they would go for?

Chicken dinners for everyone

Shares for chicken producer Inghams Group Ltd (ASX: ING) haven’t performed that much better recently than United Malt.

The stock has plunged more than 20% year to date, and has lost 14.5% over the past five years.

But it’s a winner winner for Australians about to tighten their belts, according to Gerrish.

“Poultry business Inghams fell to fresh all-time lows in June courtesy of rising fuel and feed costs plus labour shortages have also weighed on the cost and scale of production,” he said.

“We like the company’s position into tougher economic times with chicken providing a cheaper protein alternative to say steak. Plus a forecasted yield in excess of 5% fully franked over the next 12-months is attractive in most interest rate environments.”

His team suggests accumulating Ingham shares on dips.

Some drinks to forget tough times

Gerrish went cold on winemaker Treasury Wine Estates Ltd (ASX: TWE) earlier this year, but his team is having second thoughts.

“In hindsight this move is starting to feel average to wrong especially as the alcohol industry usually enjoys tough economic times.”

Treasury Wine went through a difficult period in 2020 as Australia’s request for an investigation into the origins of COVID-19 triggered a diplomatic spat with China.

“China has been the thorn in the company’s side courtesy of heavy-handed tariffs out of Beijing but this has forced the company to reposition itself which we feel leaves it well-structured for the coming years.”

The share price remains well below its pre-pandemic high, but Gerrish feels this could attract some merger interest.

“The stock is not overly cheap but solid year-on-year growth looks achievable to justify an FY23 PE of 22x,” he said.

“We like Treasury Wine Estates plus it remains a potential takeover target although tight money markets may delay any action out of Europe.”

Gerrish’s team suggests buying into Treasury Wines at around the $12 mark. The stock closed Wednesday at $12.27.

The post Winner winner chicken dinner: Expert names 2 ASX shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Aussie Broadband, Temple & Webster, United Malt, and Zip shares are dropping
• United Malt share price plunges 13% on earnings downgrade
• Morgans name 3 of the best ASX shares to buy in August
• Top ASX shares to buy in August 2022

Motley Fool contributor Tony Yoo 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 Treasury Wine Estates 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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A2 Milk Company Ltd (ASX: A2M) shares climbed last month, despite one major daigou customer reportedly cutting ties.

The baby infant formula company’s share price lifted nearly 12% since market close on 1 July to end the month at $4.90. For perspective, the S&P/ASX 200 Index (ASX: XJO) gained 7% in the same time frame.

Let’s take a look at what is going on with A2 Milk.

What’s going on at A2 Milk

A2 Milk has lost one major corporate daigou customer, however, this is not stopping the company exploring other avenues to export its product.

‘Daigou’ refers to people or groups who export luxury goods, including infant formulas, from outside China to customers in China.

Wenjun Zhang was previously A2 Milk’s top customer, according to the Australian Financial Review, but has not bought any product since March.

However, A2 Milk CEO David Bortolussi outlined how the company is rebuilding. In comments cited by the publication, he said:

During the past year, we have increased our direct engagement with the daigou community, provided more marketing support and seen an increasing number of daigou representing our a2 Platinum brand.

Consistent with our growth strategy communicated to the market last year, we are simplifying and delayering our English Label infant milk formula distribution network.

On Tuesday, A2 Milk shares shot up more than 7% amid speculation the US Food and Drug Administration (FDA) would approve A2 Milk to sell infant formula products in the US. However, in an announcement to the market, A2 Milk said:

The company wishes to confirm that while we have been informed by the FDA that our application is under active review, at this stage there is no certainty as to the outcome of the application or the timing of any approval.

Share price snapshot

A2 Milk shares have lost almost 17% in the past year and more than 9% year to date.

For perspective, the ASX 200 Index has dropped around 6% so far in 2022.

A2 Milk has a market capitalisation of about $3.6 billion based on the current share price.

The post Own A2 Milk shares? Here’s how the company is battling to rebuild lost daigou sales appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why A2 Milk, Qualitas, Telix, and Ventia shares are pushing higher today
• Here’s why the A2 Milk share price just popped then stopped
• Own A2 Milk shares? Here’s what to expect from its FY22 results
• The A2 Milk share price has bubbled 10% higher in a month. What’s going on?

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 A2 Milk. 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has disappointed over the last five years.

The ASX bank share has slipped from $29.26 five years ago to trade at $22.71 — a 22.4% reduction in value.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 21.94% in that time, while the S&P/ASX 200 Financials Index (ASX: XFJ) has slumped 2.48%.

The only big four bank to have put in a worse performance over the last half decade was Westpac Banking Corp (ASX: WBC). The Westpac share price has fallen 31% in five years.

But ASX 200 bank shares are often viewed as strong dividend payers. So, could ANZ’s dividends have made up for its share price’s weak performance over the last five years? Let’s take a look.

How much have ANZ shares paid in dividends since 2017?

Here’s a recap of all the dividends ANZ has offered its shareholders over the half decade just been:

ANZ Dividend	Amount offered	Franking
November 2017	$0.80	100%
May 2018	$0.80	100%
November 2018	$0.80	100%
May 2019	$0.80	100%
November 2019	$0.80	70%
August 2020	$0.25	100%
November 2020	$0.35	100%
May 2021	$0.70	100%
November 2021	$0.72	100%
May 2022	$0.72	100%

All those relatively consistent dividends add up to a total of $6.74.

That means those invested in ANZ shares have just broken even over the last five years, in which the company’s share price has slipped $6.55.

Of course, as most of ANZ’s dividends in that time were fully franked, some investors might have realised even more benefits from the bank’s payouts.

And to end on another positive note, ANZ is currently boasting a 6.35% dividend yield. That’s certainly nothing to scoff at.

The post Guess how much ANZ shares have paid in dividends over the last 5 years appeared first on The Motley Fool Australia.

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More reading

• ANZ share price best of bad bunch after pocketing extra $2.3b
• How are ASX 200 bank shares responding to the RBA rate increase?
• Is the ANZ share price an ASX banking buy for the next 12 months?
• Own ANZ shares? Tech experts raise red flags over Suncorp integration
• What might the ANZ deal mean for Bank of Queensland shareholders?

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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) followed the lead of US markets and dropped into the red. The benchmark index fell 0.3% to 6,975.9 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market is expected to rebound on Thursday following a stellar night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 32 points or 0.5% higher this morning. On Wall Street, strong US economic data sent the Dow Jones up 1.3%, the S&P 500 up 1.6%, and the NASDAQ up a sizeable 2.6%.

Centuria Industrial results

The Centuria Industrial REIT (ASX: CIP) share price will be one to watch on Thursday. This morning the industrial property company is scheduled to release its full year results. It has had a strong year and is expecting to deliver funds from operations (FFO) of no less than 18.2 cents per share and a full year distribution of 17.3 cents per share in FY 2022.

Oil prices tumble

Energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a tough day after oil prices tumbled on Wednesday night. According to Bloomberg, the WTI crude oil price is down 4% to US$90.71 a barrel and the Brent crude oil price is down 3.6% to US$96.90 a barrel. A surprise increase in US crude and gasoline inventories weighed on prices.

TechnologyOne rated as a buy

The TechnologyOne Ltd (ASX: TNE) share price could have plenty of room to climb higher from current levels. According to a note out of Bell Potter, its analysts have retained their buy rating and lifted their price target on the enterprise software company’s shares to $14.25. It said: “We forecast double digit underlying EPS growth in each of the next three years.” It feels this justifies a premium valuation.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a difficult day after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.4% to US$1,782.1 an ounce. A rebound by the US dollar and treasury yields put pressure on the safe haven asset.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• How are ASX 200 gold shares reacting to the RBA rate hike?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Up 10%, what’s going on with the Zip share price today?
• Experts name 2 quality ASX dividend shares to buy with 5%+ yields

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended TechnologyOne 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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While the market rebounded strongly last month, there are still plenty of shares trading well below their highs.

Two that have been beaten down in 2022 and could be great value now are listed below. Here’s what analysts are saying about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator’s shares have been having a very tough year. Weakness in Japan and concerns over inflationary pressures have been weighing on investor sentiment. This has led to the Domino’s share price dropping 42% since the start of the year.

The team at Citi remains positive on the company and believes recent share price weakness is a buying opportunity. This is due to its very positive long term growth outlook. It said:

Our Buy rating is predicated on potential upside from potential M&A activity, upside to long term store rollout and sales on track to rebound later in CY22 once the business has cycled through the abnormal comps.

Citi has a buy rating and $92.95 price target on the company’s shares.

Xero Limited (ASX: XRO)

Another ASX share that has been beaten down is Xero. It is a cloud-based accounting solution platform provider competing with the likes of MYOB, Quickbooks, and Sage.

Despite delivering a 29% increase in revenue to NZ$1.1 billion and a 28% jump in annualised monthly recurring revenue to NZ$1.2 billion in FY 2022, Xero’s shares have been hammered in 2022 due to weakness in the tech sector. Since the start of the year, the Xero share price has lost 34% of its value.

The team at Goldman Sachs appear to see this as a buying opportunity for investors. Particularly given its belief that Xero can continue growing at a rapid rate for many years to come. The broker said:

While noting that the near term remains robust, we do acknowledge the risk of higher churn from SME business challenges and recent price increases. Nevertheless, we see Xero as well-placed to navigate this uncertainty given the stickiness & importance of its software, and lower levels of churn vs. AU overall. We revise FY23-25 GP [22% CAGR] to reflect FX and higher churn/ARPU growth (price increases).

Goldman currently has a buy rating and $113.00 price target on its shares.

The post Experts name 2 beaten down ASX shares that could be going cheap appeared first on The Motley Fool Australia.

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More reading

• Top brokers say Domino’s share price has loads of extra topping in it, here’s why
• Broker gives its verdict on the Xero share price following new product launch
• 2 excellent ASX tech shares experts say are buys
• Top brokers name 3 ASX shares to buy today
• How are ASX 200 tech shares performing on Wednesday?

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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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Lindsay Australia Limited (ASX: LAU) is one of few ASX All Ords shares to defy the market sell-off in 2022.

The S&P/ASX All Ordinaries Index (ASX: XAO) has tumbled 9% over the year to date. In contrast, the Lindsay Australia share price has risen 17.7% to 46.5 cents at the market close on Wednesday.

In a new note released this week, broker Ord Minnett says the integrated logistics and rural supply company has “historically performed consistently in a weakening economy”.

The broker’s analysts maintain a buy recommendation on the ASX All Ords share. They’ve also raised their valuation to 55 cents per share, implying a potential upside of 18%.

Who is Lindsay Australia?

Lindsay Australia transports fresh produce and provides farming equipment to rural growers.

Ord Minnett points out that it “operates predominately in the consumer staples category”. This is a market sector that has traditionally withstood rising inflation better than other ASX All Ords shares.

Founded in 1953, Lindsay listed on the ASX in 2001. The company says it is “a pioneer in the refrigerated fruit and vegetable transport industry”. It was one of the first to use refrigerated trailers in Australia.

According to Ord Minnett, Lindsay operates 19 logistics terminals, 18 rural stores, and an import/export hub at the Brisbane produce markets.

About 85% of the goods it transports are perishable foods, mostly fruit and vegetables. These products are delivered to more than 3,000 customers across Australia.

Lindsay Rural supplies and transports farming equipment, fertiliser, nutrients, and packaging materials to about 1,500 customers.

Headquartered in Brisbane, the company employs more than 1,500 staff. The founding Lindsay family holds an estimated 13% of issued shares.

Why buy?

Ord Minnett explains why it likes this ASX All Ords share in a note released this week.

The broker says:

Positive results and outlook commentary from Elders Ltd (ASX: ELD) and Silk Logistics Holdings Ltd (ASX: SLH) during the past quarter reinforces our thesis that transport and agri conditions remain favourable, supported by upward pricing of freight contracts to reflect cost pressures and tightness of supply.

Specific to the horticulture sector, ABARE has issued bullish output forecasts for FY22e and FY23e, rising by 6% and 7% respectively. Momentum from LAU’s first half result is likely to accelerate into the second half, given a higher forecast number of rail containers in operation and improving returns from the 18-store rural network.

Growth in these areas is supportive of group margins, ROE and free cash flows.

We are attracted to the market position of Lindsay Australia … and the consistency of revenue generation from grower and corporate customers. Competitive advantage is found in the synergies and customer value-add leveraged through the combined transport and rural store network.

Refrigerated transport holds high barriers to entry and the acceleration of rural and rail services is proving to be a major positive catalyst for returns. The company has more than doubled the number of rail containers to approximately 400 by 30 June 2022.

We expect LAU to increase the share of group EBITDA generated by rail services to approximately 25% in the medium term, improving free cash flow generation and adding to the ESG credentials of the business. Returns on equity have increased materially to approximately 15% in FY22e and with lower financial leverage we see higher rates of earnings per share growth into future periods.

What’s next for this ASX All Ords micro-cap?

Lindsay Australia is expected to release its full-year FY22 earnings during this month’s earnings season.

Ord Minnett is expecting FY22 EBITDA of $57.1 million, up 27%. It projects an adjusted EPS of 4.95 cents per share, up 54%.

The broker says the ASX All Ords share trades on a price-to-earnings (P/E) ratio discount to its peers.

It notes forecasts of horticulture production in FY22e and FY23e to be approximately 8% above the long-term average. This will benefit Lindsay Australia given 70% of its group revenue comes from the horticulture sector.

The broker said: “With scale as Australia’s largest stand-alone horticulture logistics specialist and national operations, we see upside risk to earnings forecasts and have raised our estimates in FY23e and FY24e”.

Lindsay Australia has a market capitalisation of $140.42 million.

The post Broker says buy: The ASX All Ords share defying this year’s sell-off to leap 13% appeared first on The Motley Fool Australia.

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More reading

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Motley Fool contributor Bronwyn Allen 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 Lindsay Australia Limited. The Motley Fool Australia has recommended Lindsay Australia 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price was rangebound today. ANZ shares closed trade 44 basis points down at $22.71.

The bank raised $2.3 billion of debt capital on Wednesday following sharp demand for its bond issue that was completed today.

In broad market moves, the S&P/ASX 200 Financials Index (ASX: XFJ) softened today, 0.88% in the red at market close.

ANZ raises $2.3 billion for Suncorp deal

The bank issued the subordinated bonds at a fixed coupon rate (interest rate) of 5.986% until maturity, according to Refinitiv Eikon data.

ANZ has been on the road with its pitchbook in an effort to sure up additional capital. It follows the bank’s $4.9 billion purchase of Suncorp Bank.

It had issued $3.5 billion of equity via an equity raise to pay for the transaction, and completed another bond issue last week for $2.8 billion.

That offer was at a higher interest rate – 6.32% to be exact. More to the point, it adds to a large cash injection the company has secured over the past few months.

After the $4.9 billion capital expense, ANZ’s balance sheet would have seen a large outflow of cash.

Consequently, this would have adjusted its capital adequacy ratios (CET1 and CET2 ratios).

Banks are required to keep a certain amount of capital on the balance sheet relative to their liabilities. It’s synonymous to the bank’s reserves.

These are known as capital adequacy ratios and place a layer of resiliency over the sector.

With that in mind, ANZ needed to acquire the additional capital in order to bring its CET1/CET2 ratios back in line with the required 4%/8% respectively.

ANZ share price snapshot

In the last 12 months, the ANZ share price has slipped more than 18% into the red. ANZ shares have lost 16.8% since the start of 2022.

The post ANZ share price best of bad bunch after pocketing extra $2.3b appeared first on The Motley Fool Australia.

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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 Core Lithium Ltd (ASX: CXO) share price powered ahead despite a small hiccup earlier last month.

The ASX lithium share finished at $1.155 a share, up 20.94% for the month of July.

In contrast, the S&P/ASX 200 Materials (ASX: XMJ) index fell almost 1% over the same time frame.

Let’s take a look at what led the company’s shares to accelerate while the broader index remained stagnant.

What happened to Core Lithium last month?

Despite tumbling to a near year-to-date low of 82.5 cents on 13 July, the Core Lithium share price made a stunning turnaround.

Selling pressure increased within the first couple of weeks of July as investors were betting against the lithium industry.

This saw Core Lithium, along with its peers, sink deep in the red.

On the same day, the company announced it significantly increased the Mineral Resource Estimate and Ore Reserves Estimate for the Finniss Lithium Project.

However, this failed to appease the market with investors shrugging off the good news at the time.

But as they have before, Core Lithium shares began to turn the tide in the following days as bargain hunters appeared to take advantage of the recent share price weakness.

The response saw the company’s shares rocket more than 20% from 14 July until 21 July.

In addition, Core Lithium released its June quarterly activities and cashflow report which highlighted its progress at Finniss.

With the company targeting first production of spodumene concentrate by the end of 2022, this could bode well for its share price.

Of course, this is provided lithium prices remain stable from here on.

Core Lithium share price summary

Adding to its already impressive gains, the Core Lithium share price has almost doubled in value in 2022.

When factoring in the last 12 months, its shares are up an incredible 317%.

Core Lithium commands a market capitalisation of roughly $2.03 billion.

The post Why did the Core Lithium share price jet 20% higher in July? appeared first on The Motley Fool Australia.

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More reading

• Why Core Lithium, Deterra, Panoramic, and Qualitas shares are racing higher
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why has the Lake Resources share price rocketed 16% today?
• Core Lithium share price surges 4% on ‘exceptional’ drill results
• Core Lithium shares leapt 9% following this week’s results release, but why?

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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