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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.

It’s been a humbling year for the stock market. As of July 12, the three major indexes — the S&P 500, Nasdaq Composite, and Dow Jones — are down more than 20%, 28%, and 15%, respectively. Bear markets are not new to Wall Street; they’ve happened in the past, and you can bet they’ll continue to occur in the future.

However, as an investor, the one thing you don’t want to do during bear markets is panic. Instead, use this time to your advantage. Here’s how I’m preparing for better days in the stock market.

Going discount shopping

If you believe in the long-term potential of a stock, you shouldn’t be deterred by short-term price drops. If anything, you can view this as a chance to grab some of your favorite investments at a discount, and potentially lower your cost basis. The cost basis is the average price you’ve paid per share of a particular stock, and it eventually determines how much you profit (or lose) from selling. If you bought 10 shares at $100, 10 shares at $150, and 10 shares at $200, your cost basis would be $150.

When you invest in a particular stock, you should be prepared to hold it for the long haul. Legendary investor Warren Buffett once said, “If you aren’t willing to own a stock for 10  years, don’t even think about owning it for 10 minutes.”

With this in mind, if you had invested in a stock while it was at $200, seeing it at $150 should be bargain time for you — especially if nothing has fundamentally changed about the business. Value investing involves finding stocks trading lower than their intrinsic value, and bear markets present a great opportunity to do just that.

Increasing my positions in the major indexes

The one thing you don’t want to do during bear markets is to stop investing because it usually ends up being counterproductive. Rather, you should be investing in the broader market instead of focusing on single companies that might not be able to weather the storm and see brighter days. Although specific companies might not survive tough economic times and market downturns, the stock market as a whole (usually measured using the major indexes) has historically bounced back from bear markets. 

In the past few decades alone, the three major indexes have survived some of the most trying economic conditions in U.S. history. They’ve bounced back from Black Monday (1987), the dot-com bubble collapse (late 1990s), the Great Recession (2008-2009), and the pandemic (2020-2021), and there’s no reason to think they won’t recover from the current bear market.

Diversification is one of the key pillars of investing, and it becomes even more important during down periods. You never want your portfolio’s success (or failure) to rely on too few companies; instead, put your money in the broader stock market and trust that there’s sunshine after the rain.

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

The post How I’m preparing for brighter days in the stock market appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for the Mineral Resources share price in FY23?
• Here are the top 10 ASX shares today
• 3 ASX lithium shares that flew in FY22, and 1 that sank
• $264 million! The 10 highest-paid CEOs on the ASX
• Could the Mineral Resources share price unload another 41% of upside?

 The Motley Fool has a disclosure policy.

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

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S&P/ASX 200 Index (ASX: XJO) gold miner St Barbara Ltd (ASX: SBM) has had a rough few years on the ASX. And now it’s rumoured to be considering major sales and mergers.  

At the time of writing, the St Barbara share price is trading just under 87 cents. That’s more than 80% lower than it was near the end of the 2018 financial year.

That financial year, the company’s market capitalisation reached a whopping $2.5 billion. Today, according to the ASX, it stands at around $697 million.

So, what might the future hold for the ASX 200 gold share? Let’s take a look.

Is this ASX 200 gold miner facing M&A activity?

ASX 200 gold miner St Barbara operates in multiple regions around the globe, but that could soon come to an end.

The company holds the Leonora Operations in Western Australia, the Atlantic Operations in Canada’s Nova Scotia region, and the Simberi Operations in Papua New Guinea.

It’s currently in merger talks with gold explorer Genesis Minerals Ltd (ASX: GMD). However, that company’s interest appears to be limited to St Barbara’s Australian activities.

In light of that, the ASX 200 gold miner is considering ditching some of its overseas operations, The Australian reports.

And Simberi will reportedly be the first on the chopping block. According to the publication’s sources, three parties are apparently vying for the operation, which could bolster St Barbara’s coffers by $50 million to $100 million.

Simberi has been plagued by challenges over the past 18 months. A tragic fatality at the mine saw its financial year 2021 production guidance withdrawn as an investigation was conducted.

Meanwhile, a notable failure was recorded at the operation’s deep sea tailing placement pipeline. Prior to that, the company had downgraded the project’s guidance due to ore variability, and COVID-19 took its toll earlier this year.

And tales of sales don’t end there. The company is also reportedly rumoured to be considering spinning out or selling off its Canadian assets – which face permitting challenges.

The last time the market heard word of a Genesis/St Barbara merger was two weeks ago. At the time, the latter stressed merger talks between the pair were “incomplete”.

No doubt, all eyes will be on the ASX 200 gold miner to see what happens in the foreseeable future.

St Barbara share price snapshot

The St Barbara share price has suffered through 2022 so far.

It’s plunged nearly 39% since the start of this year. It’s also currently 54% lower than it was this time last year.

The post This ASX 200 gold miner’s value has plunged from $2b to under $700m. Could it be set for some major M&A action? appeared first on The Motley Fool Australia.

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More reading

• I think these 2 ASX 200 dividend shares are buys for income
• ASX 200 midday update: ANZ to buy Suncorp Bank for $5bn, Whitehaven Coal’s update
• 5 things to watch on the ASX 200 on Monday
• 2 rising ASX shares of companies with a market stranglehold
• What’s in store for the BetaShares NASDAQ 100 ETF in the next 12 months?

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 Woodside Energy Group Ltd (ASX: WDS) share price is pushing higher on Monday.

At the time of writing, the energy share is up around 2% higher at $31.23 each on no news.

In broader market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is also around 2% higher on the day.

What’s up with the Woodside share price?

It’s been a quiet day for ASX oil shares today. Noteworthy, however, is the price of oil strengthening to trade back at US$101 per barrel.

Brent Crude pushed off a low of US$99 barrel overnight, following a weak spell for the global oil benchmark.

The move came in handy for the Woodside share price, shifting it higher today.

Woodside has been trading sideways this past month or so, following its rapid descent from $35.39 a share on 9 June.

Oil has been equally as volatile in recent months, with Brent Crude trading down off its June highs of US$120 per barrel.

Global oil prices have pared gains earned through the second quarter of CY2022, leaving many investors questioning how they will fare with inflation biting.

Nevertheless, oil remains at the centre of the geopolitical debate right now. It, and many other resources, have shot to multi-year highs, sending global markets into turmoil.

Accompanying this is strength in the US dollar, adding further complexity to global trade.

It seems the Woodside share price has been a reflection of this broader price action, as seen below.

In the last 12 months, the Woodside share price is up more than 37%, climbing 43% higher this year to date.

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

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More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• Why Galileo Mining, Platinum, Sezzle, and Woodside shares are dropping
• These were the 5 top performing ASX energy shares of FY22

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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It could be tricky for a beginner investor to know when to start investing in ASX shares.

Negative headlines sell. They attract a lot of attention and website clicks. When share markets are falling, there are regular fear-evoking headlines that talk about how many billions of dollars the share market has dropped on any given day.

But what if the worst days for falls are actually among the best days for buying ASX shares?

Let’s look at the share price graph for REA Group Limited (ASX: REA) or Xero Limited (ASX: XRO) and ask which time periods appeared the best time to buy. It would seem to me, on a graph, that market crashes provide the cheapest buying opportunities.

So, that’s why I believe this period — amid elevated inflation and rising central bank interest rates — could prove to be an opportune time to buy ASX shares.

But let’s look at some very wise advice from legendary investor Warren Buffett who once compared shares to buying hamburgers.

Hamburger discount

Buffett said:

To refer to a personal taste of mine, I’m going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the ‘Hallelujah Chorus’ in the Buffett household. When hamburgers go up in price, we weep. For most people, it’s the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don’t like them anymore.

To apply that quote to today’s situation, many ASX shares are now close to the cheapest they’ve been in over two years, but many investors seemingly don’t want to buy them anymore.

How does this apply to beginner investors for ASX shares?

Investing is about choosing investments that have compelling long-term futures, yes.

But, an important part of investing is ‘buying low’. How can someone make a gain on their investment if they significantly overpaid or bought at the price peak in the first place?

Paying a good price is key for good long-term returns.

While it’s impossible to say when share prices will go lower (or higher), we can evaluate the potential investments that are in front of us. Is this business that we’re looking at valued attractively for long-term investment?

At the moment, I’m seeing lots of opportunities, which I have written about recently, including Brickworks Limited (ASX: BKW), Reece Ltd (ASX: REH), Beacon Lighting Group Ltd (ASX: BLX), Baby Bunting Group Ltd (ASX: BBN), City Chic Collective Ltd (ASX: CCX), and Adairs Ltd (ASX: ADH).

This certainly seems like a good time to be buying hamburgers for the long term.

The post Why cheap hamburgers could give beginner ASX share investors food for thought appeared first on The Motley Fool Australia.

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More reading

• How much have REA shares paid in dividends in the last 5 years
• 2 All Ords ASX shares I think are underrated buys right now
• What I love about these 2 ASX dividend shares
• Why I think these 2 ASX shares are steals
• Experts name 2 blue chip ASX 200 shares to buy

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 positions in and has recommended ADAIRS FPO, Brickworks, and Xero. The Motley Fool Australia has positions in and has recommended ADAIRS FPO, Brickworks, and Xero. The Motley Fool Australia has recommended Baby Bunting and REA Group 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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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted ASX share after its short interest rose to 16%. There are concerns that rising living costs and higher airfares could stifle the travel market recovery.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 12%. This betting technology company’s shares have risen 30% over the last month but short sellers aren’t giving up. Its lofty valuation could be behind this.
• Nanosonics Ltd (ASX: NAN) has short interest of 11.9%, which is down slightly week on week. Short sellers appear to be targeting this medical device company due to its sales model change in the US. There are fears that taking things in-house could disrupt its sales and lead to higher costs.
• Block Inc (ASX: SQ2) has short interest of 11.2%, which is up week on week. This mirrors the short interest of the payment company’s shares on Wall Street. Although its shares are down ~60% in 2022, short sellers appear to believe they can keep falling.
• EML Payments Ltd (ASX: EML) has short interest of 10.1%, which is up week on week. Short sellers will have been pleased to see this payments company’s shares crash lower last week following the surprise and sudden exit of its CEO.
• Lake Resources N.L. (ASX: LKE) has short interest of 9.6%, which is up week on week. Last week this lithium developer was hit with a short attack from J Capital. It claims that investors still have no evidence that the Lilac DLE technology works at scale. It also highlighted heavy insider selling and share issues to research firms.
• Regis Resources Limited (ASX: RRL) has short interest of 9%, which is up week on week. Short sellers have loaded up on this gold miner’s shares despite its recent record quarter. They may believe this strong form will not be maintained.
• PolyNovo Ltd (ASX: PNV) has seen its short interest remain flat at 8.8%. Short sellers may be going after this medical device company due to its mixed performance and lofty valuation.
• Kogan.com Ltd (ASX: KGN) has seen its short interest rise to 8.55%. Short sellers appear to believe inventory mismanagement, supply chain headwinds, higher marketing costs, and increasing competition from Amazon will weigh on this ecommerce company’s performance.
• Core Lithium Ltd (ASX: CXO) has entered the top ten with short interest of 8.3%. Short sellers may believe that lithium prices are going to fall materially and weigh on valuations.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for Regis Resources shares in FY23?
• EML Payments share price lifts on confirmed takeover talks
• Can the Kogan share price turn over a new leaf in FY23?
• Why are Lake Resources shares receiving the most attention on Friday?
• Clipped wings: Why ASX 200 travel shares are having trouble getting off the ground today

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 Betmakers Technology Group Ltd, Block, Inc., EML Payments, Kogan.com ltd, Nanosonics Limited, and POLYNOVO FPO. The Motley Fool Australia has positions in and has recommended Block, Inc., EML Payments, Kogan.com ltd, and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd and Flight Centre Travel Group 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 Aussie Broadband Ltd (ASX: ABB) has lifted in afternoon trade on Monday. At the time of writing, the share trades 3% higher at $3.10 apiece on no news.

As the growth/tech trade has unwound itself in 2022, investors have shifted priority onto fundamentals.

With that said, let’s take a look at Aussie Broadband’s financial position, and how this could be related to its share price.

Aussie Broadband balance sheet analysis

Turning to the company’s balance sheet, we see it has a total asset base of $297 million as of H1 FY22. On this base, it has long-term liabilities of $29 million.

It also held more than $168 million in cash at H1 FY22, up from $57 million in the prior corresponding period (pcp).

Moreover, its debt ratio is just 10.5%, whereas debt as a percentage of Aussie’s total capital is only 13% – suggesting the company is lowly leveraged.

It also covers its interest payment of more than 4 times from operating income, whilst generating $2.20 for every dollar invested into its asset base.

These seem to be supportive numbers for the Aussie Broadband share price.

Furthermore, the company looks as if it will meet its short-term obligations when they fall due. Short-term liabilities are covered more than 3 times from liquid assets, up from 1.5 times in the pcp.

As a result of its performance last half, it generated a 3.% return on its assets and a 6% return on shareholder equity for the 6 months to December 2021.

Net-net, investors have $190 million in shareholder equity at the time of Aussie Broadband’s last earnings report.

From this rudimentary analysis, it appears as if the company is reasonably well capitalised and will continue to meet its financial obligations as they fall due.

In the last 12 months, the Aussie Broadband share price has clipped an 11% gain.

The post Own Aussie Broadband shares? Here’s the state of the company’s balance sheet appeared first on The Motley Fool Australia.

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More reading

• Why did the Aussie Broadband share price fall 20% in June?
• ‘Just didn’t cut it’: Look out Telstra, a new high-speed start-up is coming for you!
• Down 47% in 2 months, is the Aussie Broadband share price an opportunity calling?

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 Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband 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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What a crazy 2022 it has been for the REA Group Ltd (ASX: REA) share price.

Despite surging over the medium-term, the property listings company’s shares are down 28% for the calendar year to date.

This is being driven by extreme inflationary movements and aggressive rate hikes which have sparked concerns among investors.

Over the same time frame, the S&P/ASX 200 Index (ASX: XJO) has also tumbled by around 10%.

Although there’s been recent share price weakness, let’s take a look at how much REA has paid in dividends since 2017?

What’s REA dividend history?

Notwithstanding COVID-19, the REA board has continued to increase its fully-franked dividends to shareholders for more than a decade. 

Below, we take a look at the past five years’ worth of dividends that the company has distributed.

• September 2017 – 51 cents (final)

• March 2018 – 47 cents (interim)

• September 2018 – 62 cents (final)

• March 2019 – 55 cents (interim)

• September 2019 – 63 cents (final)

• March 2020 – 55 cents (interim)

• September 2020 – 55 cents (final)

• March 2021 – 59 cents (interim)

• September 2021 – 72 cents (final)

• March 2022 – 75 cents (interim)

Calculating the above REA dividends since September 2017 gives us a total figure of $5.94 for every share owned.

While it might seem modest compared to the current share price, a $10,000 investment in 2017 would have reaped around $8,500 in profits today, including the dividends.

REA share price snapshot

Over the last 12 months, the REA share price has lost around 26%.

The company’s shares climbed throughout 2021 before reversing their gains from January 2022 onwards.

In terms of market capitalisation, REA is the largest property and property-related services group on the ASX, valued at approximately $15.97 billion.

At the time of writing, REA shares are swapping hands at $120.72, up 0.97%.

The company has a dividend yield of 1.23%.

The post How much have REA shares paid in dividends in the last 5 years appeared first on The Motley Fool Australia.

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More reading

• Why experts are tipping these ASX 200 shares as buys
• Here are the top 10 ASX shares today
• Why this broker sees huge upside for REA share price despite housing market downturn
• Here are 2 blue chip ASX shares analysts rate as buys
• Here’s why ASX 200 tech shares are taking a beating on Wednesday

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 recommended REA Group 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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S&P/ASX 200 Index (ASX: XJO) dividend shares can be a great source of dividend income if those businesses are committed to paying solid payouts to investors.

Keep in mind though that dividends are not guaranteed. Not only that, but share prices can go backwards as well.

I think it’s important to ensure we look at ASX dividend shares at the right price. Indeed, the recent volatility in the market could prove useful in jumping on these opportunities at lower prices.

A bonus of lower prices is that it increases the prospective dividend yield of shares. On the back of lower share prices, I think these two ASX 200 dividend shares look like compelling options:

JB Hi-Fi Limited (ASX: JBH)

In my opinion, JB Hi-Fi is one of ASX’s leading retail shares. It has proven during the COVID-19 years that it is capable of capturing consumer demand for the technology we want in our lives.

Phones and computers are often seen as discretionary. But I think they have become more embedded in our lives over the years, making them a bit more ‘essential’. This makes them less likely to suffer from a heavy drop in demand during economic downturns. Households will still need devices to work, learn, communicate, and so on. I think it was informative that in the three months to March 2022, JB Hi-Fi Australia sales were up 11.9% year on year and The Good Guys sales were up 5.5% year on year.

However, since 30 March 2022, the JB Hi-Fi share price has dropped 27%. This has pushed up the potential dividend yield on the company’s shares.

In FY23 and FY24, JB Hi-Fi is predicted to pay an annual dividend per share of $2.32 and $2.18 respectively, according to estimates on CMC Markets. This puts the grossed-up dividend yield for the next two financial years at 8.2% and 7.7%, respectively. These estimates assume a sizeable dividend cut from the ASX 200 dividend share compared to the FY21 level, reflecting lower earnings.

South32 Ltd (ASX: S32)

South32 is one of the bigger resource businesses on the ASX. It has a global portfolio of projects across the Americas, Africa, and Australia. It’s involved with bauxite, alumina, aluminium, copper, metallurgical coal, manganese, nickel, silver, lead, and zinc.

The South32 share price has dropped by around 33% since 8 June 2022.

The company’s profit is heavily influenced by changing commodity prices. A higher commodity price largely adds to profit, because it costs a similar amount to extract that resource whether the resource price is US$10 higher or lower. But, a lower commodity price mostly detracts from profit.

Commodity prices have fallen in recent weeks. I think this could prove to be an opportunistic time to buy because of the cyclical nature of resources.

CMC Markets has estimates of annual dividends per share of 31.8 cents in FY23 and 28.3 cents in FY24. That translates into a projected grossed-up dividend yield of 13% in FY23 and 11.7%. Those look like solid yields to me, incorporating lower earnings and dividends compared to FY22.

The post I think these 2 ASX 200 dividend shares are buys for income appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: ANZ to buy Suncorp Bank for $5bn, Whitehaven Coal’s update
• 5 things to watch on the ASX 200 on Monday
• 2 rising ASX shares of companies with a market stranglehold
• What’s in store for the BetaShares NASDAQ 100 ETF in the next 12 months?
• Own Soul Patts shares? Here’s what to look out for in FY 2023

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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The Vulcan Energy Resources Ltd (ASX: VUL) share price hit a snag towards the end of FY22.

Since soaring to a record high of $16.65 on 13 September 2021, the clean lithium developer’s shares have been trending lower.

At the time of writing, Vulcan Energy shares are swapping hands at $5.74, down more than 65% from their peak 10 months ago.

Let’s take a peek at the outlook for Vulcan Energy shares for FY23.

Vulcan Energy shares a buy, according to Alster Research

The ASX lithium sector took a hit following a bearish analysis from broker Goldman Sachs that indicated prices for the crucial battery-making ingredient could tumble.

According to the broker, “fundamental mispricing has, in turn, generated an outsized supply response well ahead of the demand trend in focus”.

Currently, lithium prices are fetching around US$72,000 per tonne.

Nonetheless, the company aims to become the world’s first lithium producer with net zero greenhouse gas emissions by 2025. It hopes to supply the European lithium-ion battery and electric vehicle market with a battery-quality lithium hydroxide chemical product.

What do other brokers say?

While Goldman Sachs didn’t initiate a price target on Vulcan Energy shares, UBS did.

Earlier this year, the Swiss investment firm raised its rating by 7.4% to $10.20, implying a significant upside of almost 80% for investors. 

And, as my Fool colleague James reported, the Alster Research team was even more bullish.

Its analysts believe Vulcan Energy shares are a buy with a massive price target of $20.00 apiece.

The broker commented:

We remain confident about Vulcan’s operational development and improvement in becoming a provider of renewable energy and lithium with a zero-carbon footprint, which is why we reiterate our buy recommendation.

However, this broker note came out before Goldman Sachs’ negative report, which together with other international factors, sent the industry into a freefall.

The post What’s the ahead for the Vulcan Energy share price? appeared first on The Motley Fool Australia.

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More reading

• Why has the Vulcan share price lost a nasty 6% today?
• Why Pro Medicus, St Barbara, Vulcan, and Whitehaven Coal are pushing higher
• Vulcan Energy share price leaps 8% on Italian energy producer agreement
• Why did the Vulcan Energy share price crater 28% in June?
• Down 8%, why is the Vulcan Energy share price burning away today?

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 S&P/ASX 200 Materials Index is leaping 0.92% today, but two ASX mining shares are soaring far higher.

The Anson Resources Ltd (ASX: ASN) and Lunnon Metals Ltd (ASX: LM8) share prices are both flying higher on the back of new discoveries.

So let’s take a look at what these two explorers discovered.

Lunnon Metals Ltd 

The Lunnon share price is surging by nearly 11% today. Lunnon is exploring the Kambalda Nickel project in Western Australia.

Today, Lunnon provided an update on its drilling program at the Baker Shoot site. Drilling returned 23m at 6.78% nickel including 14m at 8.13% nickel and 7m at 5.92% nickel.

The company highlighted the width and grades are better than the recent mineral resource estimation for the project.

Commenting on the results, managing director Ed Ainscough said:

Another stand out result for Baker – the run of five consecutive metres over 10% Ni really is the “cherry on top”.

Following the results reported last week from this same section, the fact that Baker has the ability to deliver these nickel grades over such impressive widths and all so close to surface, is exciting for the entire Lunnon Metals team and naturally, of course, for our shareholders

Anson Resources Ltd (ASX: ASN)

The Anson Resources Ltd (ASX: ASN) share price is soaring 9% today. Ansom is exploring the Paradox Lithium Project in the state of Utah, USA.

Anson reported “high concentrations” of lithium and bromine from drilling at the site.

Results included:

• 97 parts per million (ppm) lithium (Li), 882ppm bromine(Br) in Clastic Zone 33 (11ft thick)
• 240ppm Li, 4,115ppm Br in Clastic Zone 31 (18ft thick)
• 111ppm Li, 4,112ppm Br in Clastic Zone 29 (18ft thick)

These assay results are outside the existing resource estimate at the site. Commenting on the resource, Anson said:

Anson plans to confirm a major resource upgrade on completion of its current
drilling campaign at the Cane Creek 32-1 and Long Canyon No. 2 wells.

There is also scope for further Resource expansion via targeted drilling in the western areas of the Paradox Project.

The post 2 tiny ASX mining shares soaring on new discoveries appeared first on The Motley Fool Australia.

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More reading

• What’s the ahead for the Vulcan Energy share price?
• Could ASX coal shares be set for a boost?
• Prediction: These tiny growth stocks could be worth $5 billion by 2030
• Here’s what brokers are saying about the Rio Tinto share price
• Understanding these 2 metrics will make you a better growth investor

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.

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