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Shares of banking major Commonwealth Bank of Australia (ASX: CBA) are tracking lower today at $104.99.

After a wavy run this past half-year, CBA shares are now back within their 52-week highs and are now up around 4% for the year.

Are CBA shares a buy?

It appears that analyst sentiment has shifted towards CBA, with the majority of coverage now rating it a sell.

According to Bloomberg data, 10 firms rate CBA a sell at present, 4 a hold, with the remainder saying to buy. Two of those are Jefferies and Bell Potter, valuing the bank at $116 and $108 per share respectively.

However, the consensus price target from this entire list is $95.31 per share, suggesting a potential downside target if these brokers are right.

Analysts at Morgan Stanley aren’t so sure about CBA and urge their clients to sell shares at the time of writing. The broker values CBA at $92 per share and reaffirmed its underweight rating in a recent note.

It was quick to point out that CBA’s mortgage growth has slowed in 2022, something it reckons stems from increasing competition and higher funding costs in the segment.

Morgan Stanley also highlights that CBA no longer benefits from the $51 million term-funding facility provided by the RBA either, a lower-cost source of funding than traditional measures.

During the “price war of 2021” it was this term-funding facility that “supported above system loan growth” throughout the year, the broker says.

JP Morgan has followed a similar vein in its review of CBA, advocating clients to sell or reduce their exposure.

The firm values CBA at just $94 per share, a 10% downside target at the time of writing. It too noted the pressures from mortgage markets, and expects banks such as CBA “to face greater [net interest margin] NIM pressure in the short-term than NAB/ANZ”.

In the last 12 months, CBA shares have spiked around 18% higher and are up 4% this year to date.

The post Are CBA shares a buy? Here’s what analysts say 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 Bruce Jackson.

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The Perseus Mining Ltd (ASX: PRU) share price is tracking lower today despite the company posting a record result for the past three months of activity.

In its March quarter report released today, the gold exploration company said that it “continues to set production and operating cashflow records”. Despite this, investors have sold off and/or booked profits in Perseus shares today.

At the time of writing, the Perseus share price is tracing 2.85% lower at $1.875 after earlier hitting an intraday low of $1.84.

The share price is also likely to be feeling the weight of the S&P/ASX 300 Metals & Mining Index (ASX: XMM) tracking 5.51% lower so far today. That extends the sector’s losses to 11% over the past week.

Let’s take a closer look at the company’s March quarter results.

Perseus share price dips despite record quarter

Despite a production record of 130,523 ounces, investors haven’t bitten at Perseus shares today.

The company reported quarterly gold sales jumped to 131,044 ounces, an increase of 557 ounces for the quarter. Perseus realised these sales at a weighted average sales price of US$1,701 per ounce.

It also reported its weighted average all-in sustaining costs (AISCs) decreased by 3% quarter-on-quarter to US$908 per ounce.

The average quarterly cash margin increased US$58 per ounce to US$793 per ounce of gold for the quarter. However, cash expenditures increased during the period.

“Notional cashflow from operations increased by 10% quarter-on-quarter to US$104 million, resulting in total year to date notional cashflow of US$275 million,” Perseus said.

The company also paid an interim dividend of 0.81 cents per share at the end of the quarter. That represents a 0.43% trailing yield at the current share price.

Through its proposed acquisition of Orca Gold Inc., the company intends to increase its ore reserves and boost its ore inventory. It said:

The proposed acquisition of Orca Gold Inc. through a Plan of Arrangement which, when complete, will result in the ownership of the undeveloped long-life Block 14 Gold Project in Sudan, and an indirect 31.4% interest in the Koné Gold Project, owned by TSX-V listed Montage Gold Corp, in northern Côte d’Ivoire, that is based on a large, potentially long-life undeveloped gold reserve.

What’s next for Perseus Mining?

Perseus left the quarter with available cash and bullion of US$278 million, an increase of US$66 million in its net cash position.

With respect to its half-year forecasts, Perseus made no changes to previously outlined guidance in its results today.

It also retained full-year projections of 471,164 to 506,164 ounces at an AISC of US$932 to $1,020 per ounce. The company said:

Perseus’s strong operating performance is forecast to continue with no change to the June 2022 Half Year production guidance of 230,000 to 265,000 ounces at an AISC of US$915 to US$1,085 per ounce.

In the last 12 months, the Perseus share price has gained more than 47% and is up 16% this year to date after a slight pullback.

The post Perseus Mining share price slips despite record quarter appeared first on The Motley Fool Australia.

More reading

• South32 share price sinks 8% amid rising cost guidance
• Why is the AGL share price outperforming today?
• Latin Resources share price sinks 10% despite lithium project update
• Bitcoin price leaps 4% but is the leading crypto due for a big retrace?
• Have ASX tech shares finally reached the bottom?

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 Bruce Jackson.

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The South32 Ltd (ASX: S32) share price is having a hard time attracting support on Tuesday. Increased selling pressure has arrived at the doorstep of the mining metals company following its March quarterly report.

In afternoon trade, South32 shares are trending lower with a fall of 8.4% from its previous closing price. As a result, the miner is now sitting at $4.43 per share. For comparison, the S&P/ASX 200 Index (ASX: XJO) is 1.9% in the red — retracting further from its recent green streak.

Let’s peel back the layers of South32’s latest announcement.

Are cost pressures creeping up?

The March-ending quarter was a busy one for South32, yet the market is not on its side today. Despite production numbers being markedly higher quarter on quarter for key products including silver, lead, and metallurgical coal, it looks like investors are focusing on the cost side of the equation.

Based on the quarterly report, the multi-billion-dollar mining giant is forecasting its full-year operating unit costs to move upwards. The revision to the FY22 cost guidance is a reflection of stronger producer currencies, inflated input costs, and an increase in price-linked royalties. In turn, the South32 share price is suffering today.

Furthermore, the increased operating unit costs are expected across most of the company’s operations. The only operation listed by South32 that has avoided revised guidance is the Sierra Gorda copper mine. Meanwhile, some of the operating unit cost increases include the following:

• Worsley Alumina: US$257 per tonne increased to US$265 per tonne
• Brazil Alumina: Approximate 5% increase from US$262 per tonne
• Cannington: US$120 per tonne to US$131 per tonne
• South Africa Manganese (FOB): US$2.51 per dry metric tonne to US$2.79 per dry metric tonne

What else?

On a more positive note, the company expects FY22 production to be in line with previous guidance.

In addition, South32 successfully completed the acquisition of its 45% interest in the Sierra Gorda copper mine during the quarter. This tallied up to be a US$1.4 billion acquisition for the mining beast.

Another initiative to reward shareholders during the quarter was the purchasing of a further 5 million shares through a buyback arrangement. At the end of the quarter, South32 has another US$285 million in buybacks remaining.

How has the South32 share price performed?

Despite today’s weakness, the South32 share price provided shareholders with market outperformance in 2022. While the ASX 200 has slipped 3.3% lower, the metals company is up roughly 9% over the same duration.

Finally, Goldman Sachs currently holds a conviction buy rating on the company. With its diversified exposure to base metals and strong free cash flow, Goldman has happily tagged it with a $5.80 price target.

The post South32 share price sinks 8% amid rising cost guidance appeared first on The Motley Fool Australia.

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• Goldman Sachs names 3 ASX 200 mining shares to buy today

Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.

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The AGL Energy Limited (ASX: AGL) share price is in the red on Tuesday. Though, it’s outperforming many of its peers.

Right now, S&P/ASX 200 Index (ASX: XJO) is trading 1.77% lower. Meanwhile, the S&P/ASX 200 Utilities Index (ASX: XUJ) is down 1.59%.

And while AGL isn’t technically a part of the energy sector, it’s worth noting that the S&P/ASX 200 Energy Index (ASX: XEJ) has plunged 3.55%.

Meanwhile, the AGL share price is recording a 0.35% drop, trading at $8.45 per share.

So, what’s happening with the energy producer and retailer on Tuesday? Let’s take a look.

What’s going on with AGL today?

There’s been no price-sensitive news from AGL to explain its share price’s performance today.

However, the company has agreed to look into using coal ash from its Bayswater power station to make construction materials.

Additionally, some of the company’s preparations for its planned demerger have hit headlines. As has news that the outage at the Loy Yang power station could leave a nearly $90 million dint in AGL’s profits.

AGL and Nu-Rock Building Products have agreed to work together to recycle coal ash from Bayswater, helping to convert the station’s site into “an ecosystem within a circular economy”.

AGL chief operating officer, Markus Brokhof commented:

This technology is a great example of using various value streams, as we produce energy at Bayswater to power the state, our coal ash waste can be recycled for the better by Nu-Rock into bricks that can be used in local construction projects …

We have a very clear plan to rejuvenate our thermal sites into low carbon industrial energy hubs, and this technology would complement those plans.

On top of AGL’s latest sustainability move, the company is reportedly hiring in the lead up to its planned demerger.

If successful, the demerger will see AGL split into AGL Australia and Accel Energy.

The company is working to fill out customer and generation teams for both businesses as it prepared for shareholders to vote on the demerger in June, reports The Australian.

Finally, RBC Capital Markets reportedly believes the outage at Loy Yang A could dint AGL’s bottom line by $25 million a month. That’s if the company’s forced to buy energy from the spot market.

The broker said costs could culminate in a nearly $90 million hit to profits if the impacted unit isn’t up and running by August, reports The Australian.

AGL share price snapshot

Despite today’s dip, the AGL share price is well and truly in the year to date green.

It has gained 33% since the start of 2022. Though, it’s still 3% lower than it was this time last year.

The post Why is the AGL share price outperforming today? appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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The Latin Resources Ltd (ASX: LRS) share price is heading south today following the company’s latest announcement to the ASX.

At the time of writing, the lithium explorer’s shares are selling at 17 cents, down 10.53%.

What did Latin Resources announce?

Latin Resources shares are sinking regardless of the company’s positive drilling results at the Bananal Valley Prospect.

In its release, Latin Resources advised it has recorded the thickest intersection to date from its ongoing drilling campaign.

As such, management believes that the results could represent a significant new lithium discovery at the Salinas Lithium Project. Both diamond drill holes returned the following:

• 4.25 metres at 1.32% Li2O from 125.4 metres (SADD005)
• 4 metres at 1.36% Li2O from 159.1 metres (SADD005)
• 21.1 metres at 1.2% Li2O from 208.8 metres (SADD006)

While the presence of thick high-grade lithium bearing pegmatites has been confirmed, the company will commence a systematic drilling campaign. This will be aimed at providing sufficient data to undertake a maiden mineral resource estimate for the Salinas Lithium Project.

The resource definition drill out is expected to comprise around 25,000 metres of diamond drilling. This will involve testing a full 800 metre strike length of the known high-grade pegmatites.

In addition, Latin Resources stated that drilling rig access to the Monte Alto site has now been established.

A planned 2,000 metre drilling campaign will test the strike extent of the outcropping spodumene bearing pegmatites. Coring operations are expected to begin any day now.

Management commentary

Latin Resources managing director, Chris Gale commented:

We continue to receive exceptional assay results from our Bananal Valley Prospect. This continues to get more encouraging every day.

We are also very excited to be commencing drilling at our new Monte Alto Prospect. Our mapping and outcrop sampling in this area has shown us that we have thick, high- grade lithium pegmatites outcropping over a considerable strike extent…

We are planning an initial 2,000m of drilling in two stages at Monte Alto and assay results should start flowing in May.

With the company recently raising $35,000,000, we have now expedited the drilling program by commencing our 25,000m resource definition drilling campaign at Bananal Valley.

With drilling now on multiple fronts, and more rigs on the way to site, we have really stepped up our pace in Brazil to fast track our pathway to an initial JORC Mineral Resource estimate.

About the Latin Resources share price

The Latin Resources share price has accelerated in the past year, gaining more than 250%.

While renewed investor sentiment within the battery industry has helped support the share price, the company has been making tailwinds.

Based on the current share price, Latin Resources commands a market capitalisation of more than $286 million.

The post Latin Resources share price sinks 10% despite lithium project update appeared first on The Motley Fool Australia.

More reading

• Why is the Latin Resources share price powering ahead today?
• Here’s why the Latin Resources share price is on ice today
• Latin Resources share price surges 11% on ‘very positive’ lithium news
• Why did this ASX lithium share soar 18% today?
• Why Eagers Automotive, Firefinch, Latin Resources, and Piedmont Lithium are rising 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 Bruce Jackson.

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The Bitcoin (CRYPTO: BTC) price is charging ahead, up 3.8% over the past 24 hours.

One Bitcoin is currently worth US$40,526 (AU$56,365).

That gives the world’s original crypto a market cap just north of US$770 billion, according to data from CoinMarketCap.

Why the big leap higher?

The Bitcoin price looks to be following the lead of US tech shares, which rebounded yesterday (overnight Aussie time) to send the Nasdaq up 1.3%.

Despite the overnight bump, Bitcoin remains down 15.8% in 2022, just edging out the 17.8% year-to-date loss posted by the tech-heavy Nasdaq.

And while crypto investors may be cheering the 3.8% boost in their holdings (valued in US dollars), some analysts are predicting the digital token could be looking at a 19% or more slide from current prices.

What analysts are saying about the Bitcoin price

In a note released prior to today’s 3.8% lift in the Bitcoin price, Mark Newton, a technical strategist at Fundstrat, said (quoted by Bloomberg), “Bitcoin looks to be breaking a pivotal minor two-month trend on Friday’s pullback that likely causes weakness down to test January lows.”

Newton forecasts the Bitcoin price will retrace to US$36,300. If it falls below that price, he said this “should lead to a full retest of US$32,950 without too much trouble”.

A major potential headwind for the Bitcoin price is the outlook for interest rates. While the RBA may hold off for another month or two, the US Federal Reserve has no such intentions, with numerous 0.50% rate hikes expected in the months ahead.

According to analysts at Nydig:

As it becomes more valuable to hold dollars, some investors may reallocate from Bitcoin or gold to the dollar. Like the negative correlation of Bitcoin to the dollar, the negative correlation of Bitcoin to real rates has only emerged in the last couple of years.”

Commenting on why the Bitcoin has been languishing in a trading range largely between US$35,000 and US$45,000 this year, James Malcolm, head of crypto research at UBS said (quoted by Bloomberg), “The vast majority of the population seem to have little interest in crypto because it’s too complicated, too volatile, too strange. So in a sense, we’re stuck at the moment.”

So, how does the Bitcoin price get out of its trading rut?

“It either needs new people or it needs existing players to dedicate an increasingly large slice of resources to the industry,” Malcolm said.

The post Bitcoin price leaps 4% but is the leading crypto due for a big retrace? appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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As any investor in ASX tech shares would know, the last few months have proven to be a rough ride. Since the start of 2022, the S&P/ASX All Technology Index (ASX: XTX) has lost a painful 24% or so. That includes the hefty 1.27% drop we’ve seen today so far. And many individual ASX tech shares have fared far worse.

Take Altium Limited (ASX: ALU). Altium shares are now down almost 28% over the year to date. Appen Ltd (ASX: APX) goes one step further with its near-40% slide this year so far. And Zip Co Ltd (ASX: ZIP) has given its investors a painful 75.5% drop since the start of the year.

Today is no different. This Tuesday has seen the S&P/ASX All Technology Index (ASX: XTX) lose another 1.27% so far. So with such losses already under the belt in 2022, many investors might be wondering when ASX tech shares will hit their bottom.

Well, according to reporting in the Australian Financial Review today, ASX tech investors should keep an eye on the US markets.

It’s quarterly reporting season over in the US right now. Why does this matter? Well, ASX tech shares, in particular, often seem to take their cues from their US counterparts. So it might come as no surprise that the struggles of ASX tech shares have occurred almost in parallel with the US tech sector over the year so far.

US markets to boost ASX tech shares?

We’ve already seen some disastrous results, such as the ones from Netflix Inc (NASDAQ: NFLX). These sensationally saw the streaming giant lose close to 40% of its value last week. So it’s perhaps no wonder our tech shares have been getting an extra dose of the jitters ever since.

But, according to the AFR report, investors hoping to see a bottom in the fall of ASX tech shares should keep watching the US markets this week. Over the next few days, we will see Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms Inc (NASDAQ: FB), and Amazon.com Inc (NASDAQ: AMZN) report their quarterly earnings. Add in Australian software company Atlassian plc (NASDAQ: TEAM).

The AFR report quoted Wedbush analyst Dan Ives on the matter. Ives stated that he reckons Apple and Microsoft, in particular, will help investors prevail through what he sees as a “white knuckle moment” in the markets right now. Ives is expecting both Microsoft and Amazon to report strong growth in their cloud products, and Apple to report strong expected numbers from China.

This strong showing, he predicts, will help Wall Street see that “the ‘feared slowdown’ is more bark than bite at this point in the cycle”.

No doubt that rosy prediction will be welcomed by many ASX tech share investors right now. But we shall have to wait and see if Ives’s predictions are accurate.

The post Have ASX tech shares finally reached the bottom? appeared first on The Motley Fool Australia.

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• Is the Zip share price weakness a buying opportunity?
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• Top brokers name 3 ASX shares to sell next week
• The world’s most valuable companies from 2000 to 2022

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns Alphabet (A shares), Amazon, Apple, Atlassian, Meta Platforms, Inc., and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Altium, Amazon, Appen Ltd, Apple, Atlassian, Meta Platforms, Inc., Microsoft, Netflix, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares) and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Russian invasion of Ukraine this year suddenly brought into focus a topic that the developed world has not thought about for many decades: food security.

For example, the two countries combined provide more than a quarter of the world’s wheat.

Suddenly, western nations have had to deal with rising prices of staples and how that can lose votes in the polling booth or even ferment social unrest.

Many countries are even reviewing their own agricultural self-sufficiency.

As such, it could be worth taking a look at some ASX shares that might benefit from this renewed focus on agriculture.

“After a lost decade post-financial crisis, things are looking up for the agricultural sector,” Firetrail Investments analysts said in a recent memo to clients.

“The prices of soft commodities like corn and wheat increased over 20% in 2021, and this was before the Ukrainian conflict. Everything from fertilisers to crop chemicals and companies exposed to the sector are enjoying their most buoyant outlook in years.”

The team at Firetrail have a couple of stocks in that area that they expect to continue their outperformance:

‘Favourable seasonal conditions and tight global supply chains’

Nufarm Ltd (ASX: NUF) supplies pesticides and seeds to the agricultural sector.

Firetrail analysts told its clients in a memo that this holding has had a bumper start to 2022.

“Shares rose 30% in the quarter, buoyed by an earnings upgrade and a positive investor day that showcased the company’s longer term growth potential.”

The team also reckoned the stock price had cashed in on “general positive sentiment” for agricultural players after the breakout of war in Ukraine.

Despite the price climb, Firetrail is convinced there’s plenty of potential left in Nufarm shares.

“We see further upside from a continuation of favourable seasonal conditions and tight global supply chains.”

According to CMC Markets, 5 of 10 analysts currently rate Nufarm as a strong buy. One says moderate buy while the remaining 4 label it as hold.

Only on Monday, Nufarm chief executive Greg Hunt confirmed the company has “nascent operations” in both Ukraine and Russia.

“Our first priority has been to ensure our people in both countries are safe and supported,” he said.

“Secondary to the safety of our people, we are focused on ensuring the security of supply for our customers and continue to monitor developments closely and prepare accordingly.”

Hunt announced that the business would raise a provision of $30 to $40 million to protect itself against the “current uncertain situation” in eastern Europe.

‘Significant discount to peers’

Incitec Pivot Ltd (ASX: IPL) provides fertiliser for the farming industry.

The Firetrail Absolute Return Fund enjoyed a nice 17% rise in the Incitec share price in the first quarter, attributed to “a continued increase in fertiliser commodity prices”.

“This was borne largely by the Ukraine conflict and the region’s importance to global fertiliser exports.”

Similar to Nufarm, Firetrail analysts reckon there’s ample gains remaining.

“Despite continuing fundamental tailwinds and strong recent share price performance, Incitec still trades at a significant discount to peers and we see further upside moving forward.”

Burman Invest chief investment officer Julia Lee last month also rated Incitec Pivot shares as a buy.

“You know I’ve been a fan of fertiliser for a while, and one of the major costs of fertiliser is energy prices,” she said.

“As oil prices rise, you usually see fertiliser prices rising.”

Incitec is very popular among professionals investors, with 9 of 11 analysts rating it as a strong buy, according to CMC Markets.

The post Food anxiety: experts pick 2 ASX shares riding the agriculture boom appeared first on The Motley Fool Australia.

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• 2 ‘very interesting’ ASX shares to buy now as ASX 200 roars back
• ASX 200 (ASX:XJO) midday update: Telstra CEO steps down, Fortescue confirms E.ON deal

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 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 Bruce Jackson.

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Tuesday is proving to be one of the worst days for the broader market this year, with the All Ordinaries Index (ASX: XAO) plummeting 1.89%, taking many share prices down with it.

But one share has managed to cling to a life raft, gaining 5% despite the market’s slump.

The share price of the All Ordinaries’ Vulcan Steel Ltd (ASX: VSL) is rising on the back of a trading update and guidance upgrade. Right now, it’s 5.03% higher than its previous close, trading at $9.60.

Let’s take a closer look at what’s buoying the industrial product distributor’s stock today.

This All Ordinaries share is taking off on Tuesday

All Ordinaries share, Vulcan Steel is on the up and up on Tuesday following the company’s latest update.

The company announced that its revenue for the 9 months ended 31 March is up 34% year on year. It’s come in at approximately NZ$700 million (around $644.7 million).

The company’s overall sales volumes have also jumped 5% this year.

Its steel segment has been the biggest driver of the increase. It’s sporting a 42% increase in revenue.

Meanwhile, the company’s metals segment’s revenue has recorded a 21% year on year boost.

In response to its higher revenue, as well as a particularly strong period of trade from February through to early April, the All Ordinaries share has upped its financial year 2022 guidance.

Vulcan Steel previously said it expected to bring in between NZ$150 million and NZ$160 million (approximately $138 million to $147 million) of pro forma earnings before interest, tax, depreciation, and amortisation (EBITDA) and prior to IFRS this financial year.

It also predicted it would report between NZ$97 million and NZ$104 million (approximately $89 million to $96 million) of pro forma net profit after tax (NPAT) prior to IFRS.

Now, the company expects it will report pro forma EBITDA of $212 million to $218 million (approximately $195 million to $201 million) pre-IFRS. The boost represents a 23% increase on its previous guidance.

Its NPAT is now expected to come to between NZ$140 million and NZ$144 million (approximately $129 million to $133 million), pre-IFRS. That represents a 24% increase.

What did management say?

Vulcan Steel managing director and CEO, Rhys Jones commented on the news driving the All Ordinaries share upwards today, saying:

Despite disruptions caused by COVID-19 and adverse weather in Australia, Vulcan’s operations and financial performance have remained strong in the past three months.

The geopolitical uncertainty in Europe has added more volatility to global supply chains and product prices for many industries including the steel sector.

Vulcan Steel share price snapshot

Today’s gain has boosted the All Ordinaries share into the year to date green.

Right now, the Vulcan Steel share price is 1% higher than it was at the start of 2022.

It has also gained nearly 34% since it floated on the ASX in November.

The post In a sea of red, this ASX All Ordinaries share is surging 5%. Here’s why appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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ASX 200 mining shares are struggling today amid falling commodity prices, including iron ore.

The big three ASX 200 mining giants — Fortescue Metals Group Ltd (ASX: FMG), BHP Group Ltd (ASX: BHP), and Rio Tinto Ltd (ASX: RIO) — are all sliding today.

Let’s take a look at what’s at play.

Commodity prices suffer

The BHP share price is down 5.24% at the time of writing while Fortescue is 6.64% lower and Rio Tinto is 4.13% in the red.

All three are all iron ore explorers. On global markets overnight, the iron ore price has fallen 6.19% to US$136.50 per tonne, Trading Economics data shows. Aluminum prices have also slid 4.64%.

Meanwhile, iron ore on the Chinese Dalian Commodity Exchange (DCE) fell nearly 11%, Reuters reported.

Commenting on the slide, SinoSteel Futures analyst Cheng Peng said:

The plunge was driven by the domestic COVID-19 situation, as market expectations on demand failed, while raw material prices lost support on state planner’s output controls.

Meanwhile, analysts predict the BHP share price could be a buying opportunity, as my Foolish colleague James reported today.

Last week, Morgans kept its add rating on the company and lifted the price target to $54.30. This represents an 18% upside on the current share price of $45.93 at the time of writing.

Meanwhile, the Goldman Sachs equity desk handled a transaction of $215 million in Fortescue shares on Tuesday, the Australian Financial Review reported. The trade was rumoured to have been at $19.95 a share, a nearly 6% discount on Friday’s closing price of $21.22.

The post Sinking iron ore price sends ASX 200 mining shares tumbling appeared first on The Motley Fool Australia.

More reading

• ASX 200 stocks dive 2.4% in worst trading day since Ukraine crisis hit
• The Fortescue share price is falling 6% on Tuesday. Here’s why
• Can Rio Tinto shares really pay a dividend yield of 18% in FY22?
• BHP share price sinks 6%: Is this a buying opportunity?
• ASX 200 mining stocks just ended a dire week of trade. What’s next?

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 Bruce Jackson.

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