Tag: Motley Fool

Rio Tinto Limited (ASX: RIO) is about to increase its share in the fast-growing aluminium billet market, pouring US$188 million into expanding its Canadian production facility.

The company’s Alma smelter, located in Quebec, will soon be able to put out an additional 202,000 tonnes of the low-carbon, high-value billets.

So, what’s so special about aluminium billets? Let’s take a look at why Rio Tinto is increasing its production.

At the time of writing, the Rio Tinto share price is $96.47, 2.52% higher than its previous close. For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.4% right now.

Own Rio Tinto shares? Here’s the latest from the company

Those invested in Rio Tinto shares may be thrilled to learn the company is moving to increase production of aluminium billets.

It plans to expand the Alma plant’s casting centre to accommodate new state-of-the-art equipment, including a casting pit and furnaces. Doing so will see more of the company’s aluminium converted into higher-value billets.

Global demand for aluminium extrusion products is expected to grow an average of 3% each year for the coming decade. Such demand will likely be driven by decarbonisation initiatives and the energy transition.

Aluminium billets are generally used to make products like car bumpers and frames for doors and windows.

Rio Tinto’s aluminium segment brought in underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of around US$4.4 billion in 2021. That was more than double what it earned in 2020.

The key drivers for its growth were a rebound in sales prices and increased demand for value-added product.

Commenting on the latest news from the company, managing director of Rio Tinto Aluminium’s Atlantic operations Sébastien Ross said:

This expansion of our low carbon aluminium billet production capacity in Quebec will allow us to better meet our customer’s growing demand for high quality alloys and value-added products made with renewable hydroelectricity. 

The post Own Rio Tinto shares? The company’s leaning into demand for this high-value metal appeared first on The Motley Fool Australia.

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More reading

• These ASX 200 mining shares are bolstering the market today
• Why did the Rio Tinto and BHP share price struggle today?
• Here’s the outlook for the Rio Tinto share price in FY23
• ASX 200 mining shares glide lower as expert reduces commodity targets
• Is this a good time to go digging for ASX 200 mining shares for FY23?

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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With consumer spending under pressure from rising living costs, the retail sector has taken a tumble in 2022.

For example, the S&P/ASX 200 Consumer Discretionary index has lost over 21% of its value. This compares unfavourably to the benchmark ASX 200 index, which is down 12% year to date.

While this is disappointing, the team at Goldman Sachs sees this as a buying opportunity for a couple of ASX 200 retail shares.

Which ASX 200 retail shares are in the buy zone?

According to a recent note, Goldman Sachs has picked out Breville Group Ltd (ASX: BRG) and Harvey Norman Holdings Limited (ASX: HVN) as shares to buy.

In respect to Breville, the broker has a buy rating and $23.40 price target on the appliance manufacturer’s shares. It expects the company’s strong growth to continue thanks to its three-pronged growth strategy.

Goldman commented:

The stock is -39.0% YTD vs All Ords -12.8%, as investors appear concerned that it was a key beneficiary during COVID in-home consumption and that reopening could result in weakness from consumption. However, we believe that the portioned and R&G coffee market will experience more secular growth than the market has factored in with continued upgrading from soluble coffee and added penetration of out-of-home (e.g. hotels, workplace).

We see BRG as having a three-pronged growth strategy: 1) building on secular growth of the portioned and roast & ground (R&G) coffee market and achieving market share gains; 2) new market entry; and 3) options – ecosystem revenue streams.

Cheap shares and big dividend

As for Harvey Norman, Goldman Sachs has a buy rating and $4.50 price target on the retail giant’s shares.

It highlights that the company’s shares are trading at an attractive level with a generous yield. In addition, the broker sees scope for management to boost its growth with acquisitions.

The broker explained:

We expect the attractive valuation and high dividend yield will attract investors back into the stock. Another potential catalyst is how the company leverages its balance sheet for growth or shareholder returns. The company’s ND/EBITDA (pre-lease) is at 0.38x in FY23e. If we apply the historical peak of ~1.9x (pre-lease), we calculate that it has debt headroom of ~A$1.2bn for potential bolt-on acquisitions or expanded capex for growth investment.

The post Top broker names the best ASX 200 retail shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Down 20% in 2022. Is the Harvey Norman share price in bargain territory?
• Top broker says Breville share price weakness is a buying opportunity
• Leading brokers name 3 ASX shares to buy today
• Here are 3 excellent ASX growth shares for investors to buy in July
• Here are 2 ASX 200 dividend shares analysts rate as buys

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 Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings 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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ASX 200 bank shares are sliding today amid 40-year high inflation figures from the United States.

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is down 1.92%, while the Westpac Banking Corp (ASX: WBC) share price is down 1.76%.

The Commonwealth Bank of Australia (ASX: CBA) share price has also fallen by 1.49%.

Let’s delve a little more into why ASX 200 bank shares are falling.

ASX 200 bank shares down

Other ASX 200 bank shares sliding today include Macquarie Group Ltd (ASX: MQG) down 0.68% and National Australia Bank Ltd (ASX: NAB) down 0.46%.

The S&P/ASX 200 Financials Index (ASX: XFJ) is also 0.82% in the red.

In news from the US overnight, inflation has jumped to 9.1%, leading to speculation the US Fed will raise rates again. High inflation in the US could be sparking fears Australia will follow a similar trend.

Broker warns 3.5% cash rate would ‘crash housing’ in Australia

A note out of UBS cited by The Australian warns a 3.5% interest rate would “crash housing” and could lead to a recession.

UBS Australia chief economist George Tharenou said:

We still think market pricing of about 3.5 per cent – if delivered – would likely crash housing, and see the economy nearing a recession.

Interest rate rises can mean higher prospects for bad debts, as my Foolish colleague Tristan reports today. However, on the flip side, rising rates can also lead to higher lending margins for the banks.

Home loan rates could nearly double to 6%

In further comments reported in The Australian, Tharenou warned interest repayments could nearly double to 6% at a 3.5% cash rate, adding:

Interest payments across the economy next year for the household sector will close to double from now. That really crushes household cashflow next year when you have cost-of-living issues.

Labour market tightens again

Meanwhile, new figures from the Australian Bureau of Statistics released today show unemployment has fallen 0.4% from 3.9% to 3.5%.

This could spark more speculation about rate rises, given inflation is often higher in a lower unemployment environment.

The post Surprise US inflation pumps the brakes on ASX 200 bank shares appeared first on The Motley Fool Australia.

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More reading

• Will Westpac shares really offer a 7.8% dividend yield this year?
• Analysts name 2 ASX 200 dividend shares to buy now
• What’s the outlook in FY23 for ASX 200 bank shares?
• ASX 200 midday update: ANZ confirms MYOB talks, energy shares fall
• ANZ share price drops amid MYOB takeover talks

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 Macquarie Group Limited and 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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The Westpac Banking Corp (ASX: WBC) share price has not been a star performer on the S&P/ASX 200 Index (ASX: XJO) of late. This big four ASX bank has lost more than 8% over 2022 thus far, as well as more than 21% over the past 12 months. That’s including the nasty 1.31% drop Westpac shares have copped so far today, which puts the bank at $19.90 a share.

But when it comes to ASX banks, share price growth is arguably only a secondary concern for many investors. When it comes to the banks, more often than not, it’s all about those dividends.

Westpac’s sluggish share price performance in recent months has done wonders for its dividend yield. Westpac now sits at a trailing dividend yield of 6.08%. As is typical with the ASX banks, these dividends also typically come fully franked, which means that 6.08% grosses up to an even more eye-catching 8.69% when we account for those franking credits.

But is that as good as it gets for Westpac shareholders?

Will Westpac shares be offering a dividend yield of 7.8% in FY2023?

Well, perhaps not. As my Fool colleague James covered yesterday, broker Citi has been keeping an eye on Westpac. This ASX broker reckons Westpac is a buy today, with a 12-month share price target of $29. That implies a potential upside of more than 45% from current pricing.

But it’s Citi’s predictions over Wetpac’s dividend where things get even more interesting. The bank’s interim dividend for FY2022 came in at a fully franked 61 cents per share.

But Citi is expecting Westpac’s final dividend for the financial year to be worth 62 cents. If that turns out to be the case, Westpac would have an FY2022 dividend yield of 6.18% based on current prices.

But Citi is also expecting Westpac to ramp up its dividends to $1.55 per share for the current 2023 financial year. If Westpac can pull that off, it would boost its forward dividend yield to a whopping 7.79% (or 11.13% grossed up) on current pricing.

This is by no means guaranteed, Westpac might not end up forking out $1.55 in dividends per share across FY2023.  But if it does, income investors might have some hefty paycheques coming their way over the next 12-18 months.

The post Will Westpac shares really offer a 7.8% dividend yield this year? appeared first on The Motley Fool Australia.

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More reading

• Surprise US inflation pumps the brakes on ASX 200 bank shares
• Analysts name 2 ASX 200 dividend shares to buy now
• Are falling BNPL shares pushing the ASX banks higher today?
• Are clouds gathering for the Westpac share price in FY23?
• Where’s the Westpac share price heading in July?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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The Core Lithium Ltd (ASX: CXO) share price is trading 3.43% in the green today.

At the time of writing, Core Lithium shares are swapping hands at 90.5 cents apiece, sharply reversing a downtrend started on 28 June.

In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is pushing 2.34% higher today.

Core Lithium shares to rally again in FY23?

Core Lithium delivered outsized returns in the last financial year, helping the ASX lithium share surge 300% in the past 12 months.

The question is, can the company continue at this kind of pace, and what should investors keep an eye out for?

Lithium carbonate pricing continues to remain buoyant, trading at US$70,702 per tonne – in line with February 2022 highs.

It has held this range since 27 May after reversing out of a short-term downtrend, as seen below.

Demand continues to outweigh supply along the lithium supply chain. This could push the cost of batteries higher – or at least keep them relatively high – JP Morgan said in its 2022 annual energy paper in May.

This could bode well for the Core Lithium share price.

Moreover, Core Lithium is rated as a buy by 100% of the brokers covering the share, according to Refinitiv Eikon data.

The consensus price target from this list is $1 per share, suggesting a small amount of upside should the bull thesis be correct.

However, mining shares have traded down recently as investors begin to unwind the commodity trade, lithium being the exception.

If weakness from the broad sector were to transpose onto the company, this could be a downside risk.

As seen on the chart below, the Core Lithium share price has tracked the ASX 300 Metals and Mining Index with striking similarity in 2022.

The post What’s the outlook for the Core Lithium share price in FY23? appeared first on The Motley Fool Australia.

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More reading

• The best and worst ASX All Ords mining shares of FY22
• 3 ASX lithium shares that flew in FY22, and 1 that sank
• How did the Core Lithium share price gain 300% in the 2022 financial year?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why is the Core Lithium share price powering down 6% today?

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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Appen Ltd (ASX: APX) shares will be worth watching like a hawk next month when the artificial intelligence data services company releases its half-year results.

Particularly after its last results release in February, which disappointed the market and sent its shares crashing deep into the red.

What is Appen guiding to this time around?

Expectations are low for Appen’s half-year results next month. That’s because management is guiding to a weak first-half followed by a much stronger second-half to FY 2022.

In May, the company provided a trading update which stated the following:

The company expects 1H FY22 EBITDA to be materially lower than the prior corresponding period [FY21 H1 – US$27.7 million] due to lower than expected revenue and reflecting investment in our transformation office, product and technology and lower share based payments in the prior corresponding period. The company expects FY22 EBITDA to be significantly weighted to 2H reflecting the revenue skew and fixed cost operating leverage.

What is the market expecting?

According to a recent note out of Bell Potter, its analysts believe “materially lower” underlying EBITDA will mean US$17.3 million for the half. This represents a decline of 37.5% over the prior corresponding period.

This certainly puts Appen in a difficult position to deliver full-year operating earnings in excess of the US$78.9 million reported in FY 2021.

So much so, the market is now forecasting an earnings decline in FY 2022. Current consensus estimates are for EBITDA of US$72.7 million this year, which will mean a year on year decline of 7.9%. But even that may prove ambitious based on its poor start to the financial year.

Time will tell what happens. But with the Appen share price down 46% in 2022, shareholders will no doubt be hoping for a positive surprise to get its shares heading higher at long last.

The post Why the upcoming first-half result could be pivotal for Appen shares appeared first on The Motley Fool Australia.

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More reading

• Tech tumble: How this ASX share plunged 59% last financial year
• Why did the Appen share price sink 13% in June?
• What on earth happened to ASX 200 tech shares in June?
• Bargains or value traps? Expert rates 3 ASX shares that halved this year
• Why are ASX tech shares struggling 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 Appen Ltd. 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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What a month it has been for the Carnaby Resources Ltd (ASX: CNB) share price.

After rocketing 22% on 23 June and another 15% the following day on the back of significant discoveries, the Carnaby Resources share price is again on the move today.

This follows the company’s exploration update for the Greater Duchess Copper Gold Project in Mt Isa, Queensland.

At the time of writing, the Carnaby Resources share price is up 24.3% to a two-month high of $1.15. In earlier trading, the share price reached $1.18.

Carnaby uncovers another encouraging anomaly

In its statement, Carnaby advised exploration activities are ramping up with extensive induced polarisation (IP) surveys conducted at the Mount Hope and Duchess prospects.

Results from a further nine IP lines reveal a very large and extremely strong IP chargeability anomaly.

As such, a very strong chargeability inversion anomaly of 47 milliseconds was modelled at Mount Hope at approximately 150 metres below the surface.

Carnaby stated that plans are underway to complete first pass drilling of this IP anomaly immediately.

In addition, the miner found highly encouraging and undrilled IP anomalies at the Duchess prospect.

Management said the source of this IP anomaly is unknown but represents an excellent drill target in the upcoming programs.

Lastly, Carnaby received rock chip and sampling results from the Shamrock prospect. These have further enhanced the potential to host copper sulphide mineralisation.

Rock chip results included up to 17.7% copper and four grams per tonne (g/t) of gold.

Channel sample results include two metres at 7.2% copper, 0.5 g/t of gold.

Carnaby will complete heritage surveys at Shamrock first before commencing first pass drilling.

‘Cause for excitement’

Carnaby managing director, Rob Watkins commented:

The IP continues to delineate outstanding new drill targets at the Greater Duchess Copper Gold Project. This along with the ongoing drilling success continues to grow the scale and value of these discoveries. The inventory and quality of the drill ready targets about to be tested is cause for excitement.

Carnaby Resources share price snapshot

Including today’s euphoric gains, the Carnaby Resources share price has soared by 238% over the past 12 months.

The shares were trading for as little as 24 cents in November 2021 before a spectacular copper discovery at the Greater Duchess Project put the company into stardom.

Based on today’s share price, Carnaby Resources commands a market capitalisation of $133.71 million.

The post What is catapulting the Carnaby Resources share price 24% higher? appeared first on The Motley Fool Australia.

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More reading

• 2 tiny ASX mining shares surging on new discoveries

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 Calix Ltd (ASX: CXL) share price is 2.2% higher at the time of writing to trade at $5.58.

The price boost for this small-cap ASX share comes as the Calix founder discusses his patented kiln, which is currently being trialled by some mining companies to create low-carbon or ‘green iron’.

What does Calix do?

Calix is an Aussie company that has developed a kiln capable of extracting substantial amounts of carbon dioxide from metals and minerals.

The company was founded in 2005 by its chief scientist Dr Mark Sceats and the late Connor Horley. Dr Sceats invented the kiln.

According to an article in the Australian Financial Review (AFR) today, Sceats hopes his kiln technology will be used across many industries to help the world decarbonise.

The kiln enables metals and minerals companies to decarbonise the stuff they dig out of the ground.

This includes being able to create low-carbon iron ore, which could then be turned into low-carbon steel. Game changer.

Mining companies trialling Calix technology

The kiln that Sceats invented has already proven itself in Europe’s cement industry. It can extract 95% of the carbon dioxide in cement.

According to the article, Sceats has spent the past year adapting his kiln technology for iron ore processing.

The article states: “Dr Sceats, 73, has spent the past year focused on developing a low-carbon, affordable method for removing the oxygen from iron ore in the hope that he can help Australia’s biggest export industry start selling “green iron” rather than iron ore.”

In an interview on the Tech Zero podcast, Sceats declined to say which mining companies were trying his kiln out in current green iron trials.

But the AFR points out that Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) have publicly said they want to sell more green iron to reduce their customers’ scope three emissions when they heat the iron ore to make steel.

‘Enormous’ opportunity

Sceats has also adapted the kiln technology for other industries, including lithium mining, agriculture, and water treatment. But he says the massive global iron ore and steel industries potentially present Calix’s biggest opportunity.

Sceats said: “It’s enormous. It’s got too many zeroes after it for me to make any sense of it at all.”

Dr Sceats’s kiln requires less expensive fuel for combustion and is able to use renewable energy to create heat. The kiln also provides better control over that heat to ensure maximum carbon dioxide extraction.

The kiln essentially heats minerals to their exact unique temperature at which gases escape. This escape makes the remaining mineral substance purer, while the extracted oxygen turns into harmless steam.

Australia could make its own steel

Sceats told Tech Zero that he could imagine an electric arc steel furnace in every major iron ore mining town in Australia by 2050.

Sceats said: “There is no impediment to Australia making steel, really. Shipping is going up, so the cost of transporting ores throughout the world is going up. Why not make the product here? The skills are here.”

What else is happening at Calix?

The most recent price-sensitive news from Calix came on 1 June when Pilbara Minerals Ltd (ASX: PLS) announced that key commercial terms had been agreed for a joint venture.

The JV involves the development of a demonstration plant and potential future commercialisation of Calix’s technology for lithium refining processes at Pilbara’s Pilgangoora Project.

The Federal Government awarded them a $20 million Modern Manufacturing Initiative Grant to help fund the project.

Pilbara Minerals Managing Director and CEO, Ken Brinsden, said their common goal was “to further decarbonise lithium raw material supply chains”.

Calix share price snapshot

The Calix share price has risen by more than 75% over the past 12 months.

In 2022, the share price is down 14.3%.

The post ‘Enormous opportunity’: Calix share price lifts as founder flaunts decarbonising technology appeared first on The Motley Fool Australia.

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More reading

• Could this be why the Lynas share price is rallying 6% today?
• These ASX 200 mining shares are bolstering the market today
• Aurizon share price sinks despite ‘transformative’ acquisition win
• Why Aurizon, Bega Cheese, Flight Centre, and Lake Resources shares are sinking
• TPG share price rises as telco hits back at Optus over ‘factual errors’

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 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 Lynas Rare Earths Ltd (ASX: LYC) share price is lifting on Thursday despite no news from the miner.

At the time of writing, the share is trading 5.74% higher at $8.11 apiece. Today’s trading volume is roughly 65% of the four-week average at 3.08 million shares.

Meanwhile, the price of the rare earth, neodymium is trading lower today at US$170,250 per tonne.

In broad market moves, the S&P/ASX 200 Materials index (ASX: XMJ) is strengthening today. It’s trading 2.2% in the green.

What’s up with the Lynas share price?

Despite no market-sensitive updates today, it’s noteworthy that the Sydney Energy Forum is on its final day.

The event brings together a raft of key stakeholders. These range from Prime Minister Anthony Albanese to industry specialists and company executives.

US Energy Department secretary, Jennifer Granholm, is among an extensive list of speakers that also includes Lynas CEO, Amanda Lacaze.

China’s domination in rare earths a risk

Rare earths was discussed at yesterday’s forum. International Energy Agency (IEA) executive director Dr Faith Birol was critical of China’s dominance in the global supply of rare earths, The Sydney Morning Herald reports.

Birol argued the country’s dominance could be a risk. She advocated for countries like Australia to speed up the development of the renewables supply chain.

Other speakers at the event echoed this sentiment on Wednesday. Various experts said the world needs to bump up its production of renewable energy and diversify the supply of key materials.

The opportunity for Lynas

Lynas is the only producer of rare earths at scale outside China. So, this kind of sentiment potentially bodes well for the Lynas share price.

It’s unlikely any speech at the event will impact the Lynas share price. However, it’s worth thinking about the content of the presentations given.

Combined with new government initiatives to support mineral exploration and discovery, it appears there’s a push to get resources out of the ground and into production.

The Lynas share price has held a 34% gain in the past 12 months despite a 26% loss in the year to date.

The post Could this be why the Lynas share price is rallying 6% today? appeared first on The Motley Fool Australia.

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More reading

• The Lynas share price soared 53% in the 2022 financial year. Here’s what happened
• Why did the Lynas Rare Earths share price tumble in June?
• Own Lynas shares? Here’s the latest challenge faced by the rare earths miner
• Mineral Monday: What you need to know about rare earths and which ASX shares are cashing in on them
• Guess which ASX 200 mining shares these experts are backing

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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Multiple ASX 200 mining shares are in the green today. BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares are rising 2.59% and 2.97% respectively.

Meanwhile, the Rio Tinto Limited (ASX: RIO) share price is jumping 2.47% and South32 Ltd (ASX: S32) shares are up 2.57%. For perspective, the  S&P/ASX 200 Index (ASX: XJO) is currently up 0.45%.

Let’s take a closer look at what’s happening with these mineral explorers today.

Why are these ASX 200 mining shares rising?

Iron ore prices may be impacting multiple ASX 200 mining shares today. Rio Tinto, BHP, and Fortescue are all major iron ore producers.

The iron ore price jumped in global markets on Wednesday. It leapt 0.93% to US$108.5 per tonne, Trading Economics data shows.

ANZ economist Madeline Dunk said iron ore futures were steady after trade data from China showed imports of iron ore were “better than expected”.

In a research note, she added: “China’s imports of the steel-making raw material were down only 0.5% y/y in June to 89mt.”

Silver and gold prices also jumped in global markets overnight, although they are pulling back now. South 32, Rio, and BHP all produce silver. Rio Tinto, BHP, and Fortescue all explore and produce gold.

As my Foolish colleague Bernd noted, US inflation has rocketed to 9.1%, according to the latest figures from America.

Gold can go up when inflation rises as it can be considered an inflation hedge. On the flip side, high rate rises can lead to a higher US dollar. The S&P/ASX All Ordinaries Gold Index (ASX: XGD) is jumping 1.86% today.

Meanwhile, looking at the bigger picture for ASX 200 mining shares, Japan Institute of Energy Economics chairman Tatsuya Terazawa has warned China is dominating global supply chains for rare earths used in batteries. He said in comments quoted by the Sydney Morning Herald:

Frankly, we’re not aware that we were so dependent on Chinese rare earths. The embargo almost paralysed entire industrial activities, and the prices of rare earths skyrocketed quickly.

Share price snapshot

The BHP share price has fallen nearly 17% in the past year, while Fortescue has descended nearly 31%. Rio Tinto shares have fallen nearly 25%, while South32 shares have risen 23%.

For perspective, the ASX 200 has lost nearly 10% in the past year.

The post These ASX 200 mining shares are bolstering the market today appeared first on The Motley Fool Australia.

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More reading

• Why experts have named these ASX 200 dividend shares to buy
• Why did the Rio Tinto and BHP share price struggle today?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Analyst names 3 reasons to be bullish on the BHP share price
• South32 share price backtracks amid sale of royalties

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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