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The resources sector has been on form this year and has played a key role in driving the ASX 200 to within a whisker of its record high.

The good news is that analysts still believe there are plenty of gains ahead for shares in the sector.

For example, the two ASX mining shares listed below have recently been tipped as buys with material upside. Here’s what you need to know about them:

Iluka Resources Limited (ASX: ILU)

The first ASX 200 mining share that could be in the buy zone is Iluka. It is a mineral sands and rare earths producer with a number of quality operations across South Australia, Western Australia, and Sierra Leone. Though, the company is in the process of demerging the latter into a separate ASX listing.

Goldman Sachs is very positive on the company. The broker highlights its attractive valuation, the favourable outlook for mineral sands, and its exposure to rare earths. Goldman explained:

“We are Buy rated on mineral sands/rare earth producer ILU (on CL) on attractive valuation and compelling Zircon and TiO2 price upside and Rare Earth growth potential. ILU is trading at a >50% discount to RE peers and >10% discount to min sands/pigment peers on an EV/EBITDA basis.

ILU recently announced the long awaited approval of the 17.5ktpa TREO (4ktpa NdPr) Eneabba Phase 3 Rare Earth Refinery (ERER) in Western Australia and a compelling risk sharing arrangement with the Australian Government, including a A$1.25bn non-recourse loan, to be paid back by 2032. Construction of the refinery will commence in 2H 2022, with first production expected in 2025. We value the ERER at ~A$3.2bn (A$7.5/sh) with a calculated IRR of c.30%, assuming feed from ILU’s Wimmera project in Victoria from 2026.”

The broker currently has a conviction buy rating and $14.00 price target on Iluka’s shares.

Mineral Resources Limited (ASX: MIN)

Another ASX 200 mining share that could be in the buy zone is Mineral Resources. Is it a mining and mining services company with a focus on two in-demand commodities – iron ore and lithium.

The team at Citi is very positive on the company, particularly given its recent decision to increase lithium production in response to the insatiable demand for the battery making ingredient. Citi commented:

“MIN plans to double spodumene processing capacity (mixed 6% concentrate, and a lower grade product) at Mount Marion lithium mine (MIN 50%) to 900 ktpa by the end of CY22, after capital investment of $120m. At Wodgina (MIN 40%), the production restart of processing Train 1 is ahead of schedule, now expected in May 2022. And processing Train 2 is now scheduled to restart in July 2022.

MIN’s expansion and restart plans are in response to strong market demand for lithium products. MIN’s share of the expanded equivalent 6% spodumene concentrate (650 ktpa) equals around 100 ktpa of LCE (by lithium units). For context, Allkem Ltd’s (AKE) targeted FY22 production capacity is 50 ktpa LCE (on a 100%), and FY26 capacity is 145-to-158 ktpa LCE.”

Citi has a buy rating and $76.00 price target on Mineral Resources’ shares.

The post Here’s why brokers love these ASX 200 mining shares appeared first on The Motley Fool Australia.

More reading

• Why is it such a mixed day of trade for ASX lithium stocks?
• What are the 10 biggest ASX shares in the lithium space
• Top brokers name 3 ASX shares to sell today
• Why Bank of Queensland, Iluka, New Hope, and Zip shares are falling today
• Which ASX lithium shares does Macquarie tip to outperform?

Motley Fool contributor James Mickleboro owns Allkem Limited. 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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It would be a safe bet that the Appen Ltd (ASX: APX) share price has not been a favourite amongst most ASX investors in recent times. This former ASX tech darling has certainly had a painful fall back to earth in recent months. A year ago, Appen was priced at $15.64. In August 2020, it was asking over $40 a share. Today? Appen is currently at $6.69, down a nasty 40% in 2022 alone so far.

The human annotated dataset company has been struggling with uncertainty in its field, which has led to guidance downgrades and a savage earnings multiple compression from investors as a result.

As Appen shares have fallen, its dividend yield has been rising…

But it hasn’t been all bad news for investors. As we covered earlier this month, Appen has been consistently raising its dividend behind the scenes in recent years, even as the company faces the woes discussed above. In 2017, when the company was last facing a share price with a ‘6’ in front of it, it doled out a total of 6 cents in dividends per share.

In 2021, the company paid out 20 cents per share, a good 67% increase on 2017’s payouts. This has helped push Appen’s dividend yield to record highs. A dividend yield is a function of a company’s raw dividends per share, and its share price. Thus, a lower share price combined with rising dividends per share is a recipe for a higher dividend yield. And that is exactly what’s been happening with Appen.

So on current pricing, Appen’s 10 cents per share in dividends gives the company a dividend yield of 1.52%. That’s likely close to the highest dividend yield new investors have ever seen in front of the Appen share price. Appen’s recent and painful share price fall certainly has this silver lining to consider

At the current Appen share price, this ASX 200 tech share has a market capitalisation of $827.9 million, with a price-to-earnings (P/E) ratio of 21.98.

The post Appen shares may be at a 5-year low, but their dividend yield has never been higher appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• ASX 200 midday update: BHP, Megaport, and Zip release Q3 updates
• What is the Betashares Geared Australian Equity Fund and is it worth buying?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today

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. owns 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 Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on form again and pushing higher. At the time of writing, the benchmark index is up 0.4% to 7,601.3 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are charging higher:

Betmakers Technology Group Ltd (ASX: BET)

The Betmakers share price is up 17% to 75.7 cents. This afternoon the betting technology company revealed that it has been selected as the exclusive technology and services provider in Australia and New Zealand for a new online sports betting venture with News Corp (ASX: NWS). The 10-year contract includes a revenue share arrangement with potential revenues greater than $300 million. As one of the most shorted ASX shares, short sellers may be wishing they had closed their positions sooner.

Brambles Limited (ASX: BXB)

The Brambles share price is up 8% to $10.83. This morning the logistics solutions company released a trading update which revealed that year to date sales were up 7% to US$4,067 million during the first three quarters of FY 2022. This was stronger than the company was expecting, leading to management upgrading its full year sales and earnings guidance.

Challenger Ltd (ASX: CGF)

The Challenger share price is up 10% to $7.53. This follows the release of the annuities company’s third quarter update. That update revealed solid growth across its Life business, which has led to management making a soft upgrade to its FY 2022 guidance. It now expects to hit the upper end of its normalised net profit before tax guidance of $430 million to $480 million.

Stockland Corporation Ltd (ASX: SGP)

The Stockland share price is up 3% to $4.22 following the release of the property company’s quarterly update. Stockland revealed that it had a strong quarter, with 95% of commercial property rent collections made and high occupancy levels maintained. This led to management reiterating its full year guidance.

The post Why Betmakers, Brambles, Challenger, and Stockland shares are charging higher appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 stocks smashing 52-week highs today
• Here’s why the Brambles share price is soaring 7% today
• ASX 200 midday update: BHP, Megaport, and Zip release Q3 updates
• ‘Exciting opportunity’: Why the Challenger share price just leapt 8%
• Betmakers share price halted amid reports of major News Corp deal

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. owns and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd and Challenger Limited. 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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Multiple ASX coal shares are struggling today. Three ASX coal shares are Whitehaven Coal Ltd (ASX: WHC), Yancoal Australia Ltd (ASX: YAL) and New Hope Corporation Limited (ASX: NHC).

Yancoal is 4.7% in the red today while New Hope is descending 2.3%. Meanwhile, Whitehaven Coal is climbing 0.73% For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.4% today.

Let’s take a look at what might be impacting ASX coal shares today.

Coal export outlook ‘bleak’

Australian National University researchers published a study today predicting a “bleak” outlook for coal exports from Australia.

Modelling by the researchers found China thermal imports could fall by at least 26%, from 210 megaton to 155 megaton annually between 2019 and 2025.

Commenting on the report, lead author Dr Jorrit Gosens said:

Our findings are clear: Beijing’s plans for rapid decarbonisation and energy security signal the end for Australia’s current coal export boom.

And this isn’t going to happen far off into the future; it is imminent.

Fund manager Alex Turnbull and ANU climate change economics professor Frank Jotzo were also co-authors on the report.

Meanwhile, Yancoal released quarterly results to the market after close yesterday.

Total saleable coal production fell 13% on the previous quarter to 8.1 million tonnes (Mt). Sales volume also fell 21% to 7.8 Mt. However, the average realised price of coal surged 23% to $258 per tonne. Yancoal attributed this fall in production to the impact of COVID-19 on labour.

Commenting on the coal prices, CEO David Moult said:

Our average realised coal price for 1Q 2022 comprised a thermal coal average realised price of A$243/tonne and a metallurgical coal average realised price of A$349/tonne; both were close to three times the prices achieved just 12 months ago.

Share price summary

The Whitehaven share price has surged 233% in a year, while Yancoal has risen 121%. Meanwhile, New Hope shares have rocketed 164%.

In contrast, the benchmark ASX 200 has increased about 8% in the past year.

The post Why are some ASX coal shares flaming out today? appeared first on The Motley Fool Australia.

More reading

• Why Alliance Aviation, Life360, Ramsay Health Care, and Whitehaven Coal are racing higher
• Coal hard cash: Here’s why the Whitehaven share price just hit a multi-year high
• Here are the top 10 ASX shares today
• Top brokers name 3 ASX shares to sell today
• Why Bank of Queensland, Iluka, New Hope, and Zip shares are falling today

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 S&P/ASX 200 Index (ASX: XJO) has just hit 7,600 points today so far after another session of pleasing gains. At the time of writing, the ASX 200 has added another 0.45% and is sitting at just over 7,600 points.

But let’s dive a little deeper into these market moves by taking a look at the shares topping the ASX 200’s volume charts right now, according to investing.com.

The 3 most-traded ASX 200 shares by volume this Thursday

BHP Group Ltd (ASX: BHP)

The Big Australian is not an ASX 200 share that often graces this list. But here we are. So far today, a hefty 9.96 million BHP shares have swapped hands. This comes after the mining giant delivered its quarterly operational update this morning covering the three months to 31 March.

As my Fool colleague James ent through, this update didn’t seem to fulfil all investors’ expectations. This is further evidenced by BHP’s nasty 2.6% drop today to just under $51 a share at the time of writing. It’s this combination that has probably led to some higher-than-normal trade volumes for the miner.

Alumina Limited (ASX: AWC)

Another ASX 200 resources share in Alumina is next up. This aluminium producer has had a notable 11.62 million shares change owners so far today. There has been no news out of Alumina itself.

However, Alumina’s partner, the US-based Alcoa, has just reported its own set of quarterly earnings as well. Investors don’t seem too impressed though, given that the Alumina share price is currently down a depressing 3.6% at $1.88 a share. It’s this steep drop that is likely the cause of the elevated trading volumes we are seeing.

Telstra Corproation Ltd (ASX :TLS)

ASX 200 telco Telstra is our third and final share to take a gander at this Thursday. So far today, a sizeable 13.06 million Telstra shares have been bought and sold on the markets. In this case, there are no news or announcements out of the company to speak of at all, save for a routine share buyback notice.

So it could be some share buybacks, as well as the 0.4% gain Telstra has notched so far today to $4.04 a share, which could be behind this high volume of shares that have been traded thus far 

The post Here are the 3 most heavily traded ASX 200 shares on Thursday appeared first on The Motley Fool Australia.

More reading

• Why Australian Ethical, BHP, Endeavour, and Megaport shares are tumbling today
• Why is the CBA dividend so low compared to the other ASX 200 banks?
• Here’s why the BHP share price is tumbling lower today
• ASX 200 midday update: BHP, Megaport, and Zip release Q3 updates
• What is the Betashares Geared Australian Equity Fund and is it worth buying?

Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. 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 Talga Group Ltd (ASX: TLG) share price is on the move today following a positive update from the company.

Earlier this afternoon, the technology minerals provider’s shares were up 5.45% at $1.74 apiece. However, they have since fallen back and are currently up 1.52% at $1.68.

Talga advances permit process on northern Swedish mine

In today’s statement, Talga advised its environmental permit application for the Vittangi graphite project has progressed.

The significant milestone comes as the Swedish Land and Environment Court provided a preliminary timetable for the next steps. This includes a formal hearing for the development of a graphite mine and concentrator at the Nunasvaara South deposit.

Talga noted the “announcement follows rigorous scrutiny of submitted application documentation and extensive consultation with relevant authorities over several years”.

Nonetheless, based on the court’s schedule, the application needs to be submitted before 23 June 2022. A formal hearing is being planned for some time in the European autumn of 2022.

It’s worth noting that this is the last step before the court hands down its verdict for the environmental permit application.

The initial Vittangi graphite project operation, fed from the Nunasvaara South mine, is aiming to produce 19,500 tonnes per annum of Talga’s flagship battery anode product Talnode-C over 24 years.

Commenting on the news that appears to be boosting the Talga share price, managing director Mark Thompson said:

We are very pleased to attain this milestone in the permitting process for our integrated graphite mine-to-anode development in northern Sweden.

Now more than ever the need for secure, local and green graphite anode is critical for the building of lithium-ion battery value chains. Following years of diligent work and investment in the unique graphite source of Vittangi, we look forward with confidence to the Court’s decision.

Talga share price summary

Since the beginning of the year, the Talga share price moved mostly sideways, posting a 3% gain for the period.

However, when looking at the last 12 months, its share price is up around 21%.

Based on today’s price, Talga commands a market capitalisation of roughly $519.52 million.

The post Talga shares jump on ‘milestone’ news appeared first on The Motley Fool Australia.

More reading

• Why BHP, Core Lithium, Tabcorp, and Talga shares are racing higher
• Talga (ASX:TLG) share price rockets 17% on EV battery news

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to extend its winning streak. At the time of writing, the benchmark index is up 0.45% to 7,602.5 points.

Four ASX shares that have failed to follow the market higher are listed below. Here’s why they are tumbling today:

Australian Ethical Investment Limited (ASX: AEF)

The Australian Ethical share price is down 7% to $6.19. This follows the release of the fund manager’s third quarter funds under management (FUM) update. That update revealed that Australian Ethical’s FUM fell 1.9% during the quarter to $6.83 billion. This was due to a combination of softening inflows and negative market movements.

BHP Group Ltd (ASX: BHP)

The BHP share price is down over 2.5% to $50.90. Investors have been selling the mining giant’s shares following the release of its third quarter update. That update revealed that COVID-19 related disruptions have been weighing on its operations and led to much of its production missing consensus estimates. And while the Big Australian has reaffirmed most of its production and unit cost guidance for FY 2022, it was forced to make some downgrades.

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price has dropped 4% to $7.54. This morning the alcohol retailer released a trading update for the third quarter. That update revealed that sales dropped 2.1% over the prior corresponding period to $2,728 million. This was driven by the Easter holidays falling into the fourth quarter this year and the impact of the floods on sales in certain markets.

Megaport Ltd (ASX: MP1)

The Megaport share price has crashed 20% to $10.24. Investors have been selling this network as a service provider’s shares after its third quarter update disappointed. For the three months ended 31 March, Megaport reported only modest quarter on quarter revenue growth of 5% to $27.9 million. This appears to have left the company with an uphill struggle to achieve the market’s full year expectations.

The post Why Australian Ethical, BHP, Endeavour, and Megaport shares are tumbling today appeared first on The Motley Fool Australia.

More reading

• Why the Australian Ethical share price has tumbled 7%
• Here’s why the BHP share price is tumbling lower today
• ASX 200 midday update: BHP, Megaport, and Zip release Q3 updates
• Here’s why the Megaport share price is tumbling 18% today
• ‘Another period of volatility’: What’s going on with the Endeavour share price 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. owns and has recommended Australian Ethical Investment Ltd. and MEGAPORT FPO. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. and MEGAPORT FPO. 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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When it comes to the major bank shares on the S&P/ASX 200 Index (ASX: XJO), it’s fair to say that dividends are an expectation. Almost every bank share on the ASX pays a dividend, and in turn, many investors have come to expect dividends from their bank shares. This is especially so with the big four banks like Commonwealth Bank of Australia (ASX: CBA). 

All four of the major banks have paid out fairly consistent and large dividends for decades. In fact, the start of the COVID-19 pandemic in 2020 marked one of the first serious disruptions to this paradigm in many years.

Now CBA may be a favourite amongst ASX bank investors. But as it stands today, CBA shares actually offer the lowest dividend yield out of the big four. Right now, Westpac Banking Corp (ASX: WBC)’s trailing dividend yield stands at 4.8%. Australia and New Zealand Banking Group Ltd (ASX: ANZ) leads the pack with its 5.05% yield. National Australia Bank Ltd. (ASX: NAB) currently has 3.77% on the table. But CBA is the definite loser here with its present 3.47% yield right now.

So we have ANZ with a 5.05% yield, while CBA lags with a 3.47% yield. That’s a big difference.

Why is the CBA dividend yield so low?

But why are CBA shares offering such a low yield compared with its peers?

Well, it’s less to do with the raw dividends being doled out than the valuation that investors are placing on the bank. See, CBA has a payout ratio policy when it comes to its dividends. The bank aims to pay out 70% and 80% of its earnings as dividends. This policy is more or less the same across the big four banks. 

So it’s CBA’s valuation that is a factor here. Investors have long given CBA shares a valuation premium, a situation that continues today. Right now, the CBA share price commands a price-to-earnings (P/E) ratio of 20.12. In contrast, NAB currently has a P/E ratio of 17.67. Westpac is about the same at 17.7, while ANZ is down at 13.51.

This pretty much explains why ANZ’s dividend is currently the highest out of the big four, while CBA’s is the lowest. If CBA traded on the same P/E ratio as ANZ, its share price would be far lower, and thus, its dividend yield far higher. Ditto in reverse for ANZ.

So that, in a nutshell, is why CBA is lagging behind its peers in the dividend arena. In situations like this, success for the CBA share price does have its drawbacks. But long-term investors are probably not too bothered.

At the current CBA share price, this ASX 200 bank has a market capitalisation of $182.99 billion.

The post Why is the CBA dividend so low compared to the other ASX 200 banks? appeared first on The Motley Fool Australia.

More reading

• Westpac share price lifts despite $12 million ASIC fine
• ASX 200 midday update: BHP, Megaport, and Zip release Q3 updates
• What is the Betashares Geared Australian Equity Fund and is it worth buying?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today

Motley Fool contributor Sebastian Bowen owns National Australia Bank Limited. 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 Bruce Jackson.

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The Redbubble Ltd (ASX: RBL) share price is up by more than 3% after the company provided investors with its trading update for the three months to 31 March 2022.

For readers who don’t know, Redbubble owns and operates the marketplace websites Redbubble.com and TeePublic.com. Those websites sell products with ‘uncommon’ designs on them that have been created by artists. Some of the products sold include apparel, stationery, housewares, bags, wall art, and so on.

Redbubble FY22 third quarter

Redbubble said that its third-quarter performance was largely in line with its expectations.

It processed $123 million of gross transaction value, which was a decline of 8%. This led to marketplace revenue declining by 7% to $96 million. Quarterly gross profit was down 9% to $36 million.

Its quarterly operating earnings before interest, tax, depreciation, and amortisation (EBITDA) was a loss of $6 million, while total EBITDA was a loss of $10 million.

The company noted that it had a strong overall retention rate with 47% of group marketplace revenue coming from repeat purchases in the third quarter. This was an all-time high for the group.

Management said that repeat rates among Redbubble members are higher than non-members, suggesting that there is a longer-term opportunity from expanding memberships.

The ‘COVID cohort’ – customers that made their first Redbubble purchase in the six months to 31 December 2020 – repeat purchase rate within 12 months was “strong” at 20.3%. Redbubble said this was an encouraging indication of the company’s ability to retain COVID cohort customers and build loyalty with a large number of customers.

FY22 year to date

With the third quarter of FY22 finished, Redbubble was able to tell investors about the company’s performance for the financial year to date (YTD) for the nine months to March 2022.

It has generated marketplace revenue of $384 million, which was a decline of 16%. However, excluding mask sales from FY21, the underlying marketplace revenue was down 4% to $376 million.

Year to date gross profit was down 22% to $144 million. It has generated $4.5 million of operating EBITDA in FY22 so far. But, total EBITDA was a loss of $2.3 million, impacted by $1.9 million of unrealised net foreign exchange losses.

Leadership commentary on the Redbubble share price

Redbubble’s board commented on the declining price of Redbubble shares (and other technology names):

Regarding the recent share price movements experienced across the broader technology sector, including Redbubble, the board does not believe that the current share price reflects the fundamentals and prospects of the business.

The company said that it continues to actively investigate value-enhancing options on behalf of all stakeholders. This includes both ‘organic’ and ‘inorganic’ opportunities that could help grow the value of the business.

Guidance

Redbubble is still expecting FY22 marketplace revenue to be slightly below FY21’s underlying marketplace revenue. The FY22 EBITDA margin as a percentage of marketplace revenue is expected to be negative in the low single digits.

It’s still aiming, in the medium-term, to grow gross transaction value to more than $1.5 billion, which will mean $1.25 billion of marketplace revenue. The EBITDA margin is expected to expand “significantly” over the medium-term with top-line growth.

Redbubble share price snapshot

Since the start of 2022, the Redbubble share price has dropped by around 60%. At the time of writing, Redbubble shares are swapping hands for $1.30.

The post Redbubble share price lifts despite 20% profit hit appeared first on The Motley Fool Australia.

More reading

• Why is it such a mixed day of trade for ASX lithium stocks?
• What unusual ‘windfall’ is shooting this ASX share price 100% higher?
• The Rio Tinto dividend was paid today. Here’s the lowdown
• 3 ASX 200 stocks smashing 52-week highs today
• The Core Lithium share price is sinking 6% today. Why?

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. owns and has recommended REDBUBBLE FPO. 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 lithium stocks are staging various performances on Thursday, with some smashing the market and others struggling to stay afloat.

The diverse set of movements come as the S&P/ASX 200 Index (ASX: XJO) records a slight gain of 0.3% and the S&P/ASX Materials Index (ASX: XMJ) slumps 1.3%.

And while there’s not much news to explain what’s going on with ASX lithium stocks today, there are plenty of international happenings regarding the battery-making metal.

Let’s take a look at what’s going on with ASX lithium stocks on Thursday.

What’s going on with ASX lithium stocks today?

It’s a strange day for ASX lithium stocks.

Right now, the Mineral Resources Limited (ASX: MIN) share price is rising 1.6%. Meanwhile, stock in Pilbara Minerals Ltd (ASX: PLS) is up 0.18%, and the Piedmont Lithium Inc (ASX: PLL) share price is 0.25% in the green.

Others, like Allkem Ltd (ASX: AKE) and Liontown Resources Limited (ASX: LTR), are trading in line with their sector. They’ve fallen 1.2% and 1.7% respectively.

However, others lithium stocks are tumbling. Right now, the share price of Core Lithium Ltd (ASX: CXO) is slumping 5.4%. That of AVZ Minerals Ltd (ASX: AVZ) is also down, having fallen 5.5%.

Why is lithium in the headlines?

The battery making ingredient has been in the news this week on anticipation Tesla Inc (NASDAQ: TSLA) could be looking to acquire a lithium producer.

Tesla co-founder and CEO, Elon Musk, tweeted earlier this month the company might need to source its own lithium if the price of the commodity doesn’t ease.

Price of lithium has gone to insane levels! Tesla might actually have to get into the mining & refining directly at scale, unless costs improve.

There is no shortage of the element itself, as lithium is almost everywhere on Earth, but pace of extraction/refinement is slow.

— Elon Musk (@elonmusk) April 8, 2022

https://platform.twitter.com/widgets.js

That’s sparked hopes the company could be looking to looking for a lithium producer to acquire, Reuters reported yesterday.

In other lithium news, Mexico’s Senate has passed legislation to nationalise the mineral’s extraction, reports the Associated Press. That means the only entity able to produce lithium in the nation will be a not-yet-created state-owned mining company.

Additionally, lithium carbonate prices in China have eased in recent days after exploding earlier in the year.

The international news may not be behind any ASX lithium stocks’ movements today. However, it might be bolstering interest in the sector.

The post Why is it such a mixed day of trade for ASX lithium stocks? appeared first on The Motley Fool Australia.

More reading

• The Core Lithium share price is sinking 6% today. Why?
• Macquarie is tipping another 40% upside for the Pilbara Minerals share price. Here’s why
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• What are the 10 biggest ASX shares in the lithium space
• Here are the top 10 ASX shares today

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. owns and has recommended Tesla. 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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