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Looking at Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares today, and one might assume that there’s nothing too special going on in the dividend department with this ASX 200 investing house. But it’s worth discussing today that Soul Patts shares are trading with a dividend yield of 2.59%.

Now that’s not terrible. But it doesn’t look particularly compelling either, even if you consider that it always comes fully franked. After all, you can easily get a dividend yield above 5% from many of the ASX’s biggest miners at present. Or 6% if you turn to the ASX banking sector right now.

Yet some investors are currently enjoying more than a 22% yield on their Soul Patts shares as we speak.

How is that possible, when this company is trading on a trailing yield of 2.59%?

Well, it’s because those investors have held their shares for a very long time, and have reaped the rewards of holding one of the most prolific inocme payers on the ASX.

How are some investors banking a 22% yield on their Soul Patts shares?

Let me explain. Soul Patts is the only ASX share on our stock market that has a 23-year streak of annually raising its investor payouts. Yep, this company has increased its annual dividend every single year since 2000.

Back in 2000, Soul Patts paid out a total of 10.4 cents per share in dividend payments. Last year, that annual total had risen to 87 cents – an increase of just over 736% across 23 years.

At the beginning of the year 2000, Soul Patts shares were asking just $3.90 apiece. If an investor picked up some shares back then, they would have received a yield of 2.67% at the time. But if that investor held those shares in their portfolio ever since, then 2023’s dividend payments would have netted them a yield on cost of 22.3%.

Of course, at the time, no one was to know that Soul Patts was about to embark on such a lucrative dividend spree over the coming decades. But for those who saw that the company had a strong management team and a well-thought-out roadmap for the company’s growth, it might not be a surprise today.

Anyone who picked out Soul Patts back in 2000 for $3.90 a share would have also enjoyed a (coincidental) 763% capital gain from the company too – given those shares that were going for $3.90 in 2000 are now fetching $33.66 at the time of writing.

This all just goes to show how lucrative a rising dividend can be over a long period of time.

The post Soul Patts shares: Here’s how some investors are getting a 22% yield appeared first on The Motley Fool Australia.

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More reading

• How can I make $1,000 a month from ASX shares?
• Retirees: 2 Top ASX dividend shares I’d buy now for passive income in 2024
• Why I’m buying Soul Patts shares over the Vanguard Australian Shares Index ETF (VAS)
• Got $15,000? How I’d invest for a bulletproof ASX passive-income portfolio
• Top 5 most profitable ASX large-cap shares of 2023

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Santos Ltd (ASX: STO) share price is sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy company are trading for $7.33 apiece, down 1.1% as we head into the Thursday lunch hour.

This comes on the heels of yesterday’s 5.8% tumble.

ASX 200 investors pressured the Santos share price on Wednesday after news broke that discussion of a potential merger with Woodside Energy Group Ltd (ASX: WDS) did not result in a transaction.

By comparison, the Woodside share price closed up 0.5% yesterday. Woodside shares are down 0.5% today.

With the Santos share price now down 7.2% since last Friday’s close, I believe ASX 200 investors are overreacting. In fact, I believe Santos has the potential to surge in 2024.

Here’s why.

The end of the Woodside merger and the Santos share price

Commenting on the end of the merger talks with Woodside, Santos CEO Kevin Gallagher said (quoted by The Australian), “Santos has a very strong future as an independent entity, our base business is strong, and our strategy has significant upside over and above where the company is currently trading.”

Indeed, the company owns a portfolio of high-quality energy assets across much of the globe.

And a series of recent court wins, which helped boost the Santos share price at the time, have paved the way for the company to continue laying the pipeline and complete the other required works at its $5.7 billion offshore Barossa gas project.

Some analysts are concerned that the legal delays could lead to increased costs and later production than planned. But Santos maintains that its Barossa project will be delivered on time and within budget.

The ASX 200 energy company is targeting first production in 2025, amid expectations of ongoing global demand growth for LNG.

“We are continuing to work to the budget and schedule as per guidance,” a Santos spokeswoman said in January.

Atop from the strong LNG market, with gas bringing in some 63% of the company’s fourth-quarter revenue, the outlook for oil prices in the first half of 2024 is also looking strong. This should offer some solid tailwinds for the Santos share price over the coming months.

The United States Energy Information Administration (EIA) forecasts a drop in the recent record levels of US oil output will continue, with US producers not returning to new peak levels until 2025.

With the slowdown in US production (the US is the world’s top oil producer) coming alongside the extended and increased production cuts from OPEC+, the EIA expects Brent crude to trade for around US$85 per barrel. And the agency noted oil prices could rise higher than its forecast with “ongoing risks of supply disruptions in the Middle East”.

With Brent crude currently trading for US$79 per barrel, an 8% or more lift from today’s prices should help boost the Santos share price.

New merger potentials

Atop its strong potential as an independent company, the Santos share price could see a big boost if the stock attracts new buyout interest, as a number of analysts are speculating.

That might come in the form of a proposal for a full acquisition. Or it could see an offer for part of Santos’ business, with its LNG assets in focus as a potential takeover target that could boost the company’s value.

According to Ben Cleary, investment manager of Tribeca Global Natural Resources (quoted by The Australian):

Regardless of Woodside walking, Santos seems to now be in play, the company trades on a lower price to net present value to most of the global peer group given their strong project pipeline in LNG and I would assume others will emerge for some or all of the company.

“We expect Santos will still try and drum up interest for some of its portfolio,” E&P Capital analyst Adam Martin added.

The post Why the Santos share price could surge in 2024 without Woodside appeared first on The Motley Fool Australia.

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More reading

• Why Alliance Aviation, Platinum, REA, and Santos shares are dropping today
• 5 things to watch on the ASX 200 on Thursday
• Why this US forecast just lifted my 2024 outlook for the Woodside share price
• Santos shares incinerate 8% as Woodside walks away
• Why CSR, Janison, Myer, and Santos shares are tumbling today

Motley Fool contributor Bernd Struben 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decent gain. At the time of writing, the benchmark index is up 0.5% to 7,654.7 points.

Four ASX share that have failed to follow the market’s lead are listed below. Here’s why they are falling:

Alliance Aviation Services Ltd (ASX: AQZ)

The Alliance Aviation share price is down 12% to $2.93. This follows the release of the aviation services company’s half year results. Alliance reported statutory profit before tax of $37.7 million, which was an increase of 296% year on year. Overshadowing this was the company’s growing debt. Its net debt has increased to $244.6 million, which is more than half its market capitalisation. It notes that it “is at an inflection point when viewed using the scope of an auditor,” which has noted an “Emphasis of Matter.”

Platinum Asset Management Ltd (ASX: PTM)

The Platinum share price is down over 6% to $1.07. This has been driven by the release of the fund manager’s funds under management (FUM) update for January. According to the release, Platinum reported FUM of $15,190 million, which was down from $15,447 million at the end of December. This was partly caused by net outflows of approximately $166 million for the month.

REA Group Ltd (ASX: REA)

The REA share price is down 3.5% to $177.49. This morning, this property listings company released its first half results and revealed revenue growth of 18% and profit growth of 22%. While this was ahead of expectations, its outlook commentary appears to have disappointed. This saw the company increase its cost guidance for FY 2024.

Santos Ltd (ASX: STO)

The Santos share price is down over 1% to $7.32. Investors have been selling this energy producer’s shares over the last couple of sessions after its merger talks with Woodside Energy Group Ltd (ASX: WDS) concluded without a deal being reached.

The post Why Alliance Aviation, Platinum, REA, and Santos shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• REA share price tumbles despite 22% profit jump
• 5 things to watch on the ASX 200 on Thursday
• Santos shares incinerate 8% as Woodside walks away
• Why CSR, Janison, Myer, and Santos shares are tumbling today
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended REA Group. The Motley Fool Australia has recommended Alliance Aviation Services and REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The team at Morgans has been busy picking out its best ASX 200 share ideas for February.

The first two ASX 200 shares we looked at can be found here. Read on for two more picks:

Mineral Resources Ltd (ASX: MIN)

The broker remains positive on this beaten down ASX 200 mining and mining services share.

It believes it is well-positioned to handle lower lithium prices thanks to the diversity of its operations. In addition, it highlights its strong organic growth potential. Morgans said:

MIN is a founder-led business and top tier miner and crusher that has grown consistently despite barely issuing a share over the last decade. Also helping our investment view is that MIN’s diversification leaves it far more capable of tolerating volatility in lithium markets than its peers in the sector. We see MIN’s lithium / iron ore market exposures as an ideal combination to benefit from the China gradual recover. We also see MIN as well placed to grow into its valuation, even if we see unexpected metal price volatility, given the magnitude of organic growth in the pipeline.

Its analysts have an add rating and lofty $72.00 price target on Mineral Resources’ shares.

QBE Insurance Group Ltd (ASX: QBE)

Morgans is a big fan of this insurance giant and sees it as an ASX 200 share to buy.

Its positive view is based on its expectation for premium increases and cost reductions to drive solid earnings growth over the coming years. In addition, it highlights the company’s cheap valuation. It said:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on 8x FY24F PE.

Morgans has an add rating and $17.56 price target on QBE’s shares. It also expects a very generous 6%+ dividend yield in FY 2024.

The post Morgans names more of the best ASX 200 shares to buy in February appeared first on The Motley Fool Australia.

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• 7 ASX lithium shares going gangbusters today
• These 3 ASX 200 shares just got some big broker upgrades!
• The ASX dividend dream: 18% returns to fuel your income goals
• Why Goldman Sachs thinks QBE shares are a top buy
• Why Credit Corp, Playside, QBE, and Skycity shares are pushing higher 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 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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Cettire Ltd (ASX: CTT) shares caught the eye of investors on Wednesday.

The online luxury products retailer’s shares rocketed higher after it delivered a very strong half-year result.

As a reminder, for the six months ended 31 December, the small cap ASX share reported a 90% lift in gross revenue to $460.5 million and a 56% lift in EBITDA to $26.1 million.

This was driven by a combination of higher repeat customers, a 4% lift in average order value, and an 83% increase in active customers to 576,000.

Can this small cap ASX share keep rising?

The team at Bell Potter has been looking over the result and was very impressed. It commented:

Cettire (CTT) reported their 1H24 result and sales revenue of $354m (+89% on pcp) & Adjusted EBITDA of $26m were solid beats to BPe. The 2H24 has commenced strongly with January gross revenue +80% as the company noted a healthy demand environment across its geographies and EBITDA profitability maintained. The cash position of $99m was also a beat to BPe $74m. CTT flagged exploring of capital management initiatives given the strong balance sheet at present.

In light of this, the broker has responded by retaining its buy rating and lifting its price target on the small cap ASX share by 20% to $4.80.

Based on the latest Cettire share price, this implies potential upside of 14.5% for investors over the next 12 months. Bell Potter adds:

We think CTT’s ability to outperform their peer group far outweighs others given the ~0.9% market share and further supported by the current consolidation the luxury ecommerce market. We also view CTT’s current EBITDA margins ahead of other ecommerce players with minimum risk associated with the drop-ship inventory model. We retain our BUY recommendation.

Cettire’s shares are now up 135% over the last 12 months.

The post Bell Potter says this rocketing small cap ASX share can keep climbing appeared first on The Motley Fool Australia.

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More reading

• Why Cettire, Dexus Industria, Pilbara Minerals, and Zip shares are jumping today
• Cettire share price rockets 40% on ‘exceptional result’
• 2 ASX growth stocks that could turn $10,000 into $30,000 by 2030
• $20,000 in savings? Here’s how I’d try to turn that into $1,463 a month of passive income
• Buy these ASX growth shares for market-beating returns

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cettire. 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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2023 was a pretty special year for Ampol Ltd (ASX: ALD) shares and the investors who owned them. For one, the year just gone saw this ASX 200 energy share rise by a rosy 27.8% – a gain that would delight any investor.

But Ampol shares shone on the income front as well. The company doled out a record level of dividend cash over 2023. The March final dividend of $1.05 per share, fully franked, was a huge increase over 2022’s corresponding 41 cents per share payment.

It was the opposite for the company’s September interim dividend though. Ampol paid out 95 cents per share (also fully franked) back in September, which was a drop from the $1.20 per share investors bagged at the same time in 2022.

Even so, Ampol’s ordinary dividend totalled $2 per share over 2023, which was a big increase on 2022’s total of $1.61. And we haven’t even got to the special dividend. Yep, Ampol shares dispatched a special cash dividend in March 2023 as well.

This payout was worth another fully franked 50 cents per share, bringing the company’s total payouts to $2.50. Both the $2 in ordinary dividend and the $2.50 in total dividends are records for Ampol in terms of passive income for shareholders.

Combined, those payments give the Ampol share price a trailing dividend yield of 6.78%. That grosses up to an impressive 9.69% yield with the value of those full franking credits.

However, these payments all reflect the past. As with any ASX dividend share, investors cannot just assume that this yield will hold over the coming 12 months. But should they? Let’s discuss whether Ampol will continue to be the divided beast it was in 2023.

Will Ampol shares shower investors with dividends again in 2024?

Well, it seems unlikely that Ampol will treat investors to the same stunning dividend in 2024 as it did in 2023.

Why? Well, the company’s special dividend that so dramatically boosted shareholder income last year appears to be something of a one-off.

At the time, Ampol told investors that this special dividend was a result of distributed “proceeds from asset sales to shareholders”. These asset sales presumably include the likes of Ampol’s NZ$522 million sale of Gull to Allegro Funds Pty Ltd in 2022.

So it’s probably safe to say investors shouldn’t be baking in an expectation of another $2.50 in dividends in 2024.

But that doesn’t mean Ampol shares won’t be generous dividend payers this year.

CommSec consensus dividend forecasts are currently predicting that Ampol will still be able to fund a total of $1.80 in dividends per share over 2024. That drops to $1.63 in 2025.

Of course, those are just projections. But if accurate, they would see the Ampol share price trading on forward yields of 4.88% and 4.42% today. Although that’s no 6.78% yield, it’s also certainly nothing to turn one’s nose up against.

The post Will Ampol shares pay another monster dividend in 2024? appeared first on The Motley Fool Australia.

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More reading

• 3 high-yield ASX shares for considerable passive income (7%-plus dividends!)
• The 3 best ASX dividend shares for 2024
• Why Ampol, APM, Liontown, and Wildcat shares are dropping today
• Guess which ASX All Ords shares are sinking after poor updates
• Here are the top 10 ASX 200 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. 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 All Ordinaries index is having a decent session on Thursday. At the time of writing, the index is up 0.3%.

And while a green day is always welcome, this gain pales in comparison to what some ASX All Ordinaries shares are recording today.

Here are three ASX shares up over 10%:

AGL Energy Limited (ASX: AGL)

The AGL share price is currently up over 12% to $8.95. Investors have been snapping up the energy giant’s shares today in response to a very strong half-year update. The company reported a 20% decline in revenue to $6,183 million but a 358.6% increase in underlying profit after tax to $399 million. This strong profit growth was driven partly by higher wholesale electricity pricing from prior periods being reflected in pricing outcomes and contract positions. This allowed the company to increase its interim dividend by 225% to 26 cents per share.

Hutchison Telecommunications (Aus) Ltd (ASX: HTA)

The Hutchison Telecommunications share price is up a sizeable 12% to 2.8 cents today. Interestingly, this is despite there being no news out of the ASX All Ordinaries share this morning. Though, it is worth noting that the company’s shares are somewhat illiquid and only a small volume has been traded so far today.

Syrah Resources Ltd (ASX: SYR)

The Syrah share price is 12% to 50.5 cents. While there has been no news out of this graphite producer either, it certainly isn’t illiquid. A lot of shares have been changing hands today as investors continue to flood back into beaten down battery materials shares. This latest gain means that Syrah’s shares are now up by an impressive 29% since this time last week. Though, that still doesn’t change much on a 12-month basis. Over that period, the company’s shares are down approximately 75%.

The post 3 ASX All Ordinaries shares rocketing over 10% today appeared first on The Motley Fool Australia.

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More reading

• AGL share price rockets 15% after half-year profit surge
• 5 things to watch on the ASX 200 on Thursday
• These are the 10 most shorted ASX shares
• Why AGL, Arcadium Lithium, Chalice Mining, and Nickel Industries shares are falling
• Is the AGL share price a buy before its half-year results drop?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Owning BHP Group Ltd (ASX: BHP) stock means having a small piece of Australia’s biggest company. There are a number of things investors should know about it.

BHP currently has a market capitalisation of around $240 billion, compared to $191 billion for Commonwealth Bank of Australia (ASX: CBA).

Its market capitalisation is not the most important thing to know about the ASX mining share. I’d suggest it’s important to know the following three things.

The iron ore earnings are cyclical

Humans seem to have a habit of assuming that what’s happening in the short term will continue for a long time. Sometimes that’s correct. But it’s important to recognise that some things are likely not to continue forever, particularly when they have a history of being cyclical.

Iron ore supply and demand is definitely one of those things I’d call cyclical. Most of the world’s iron ore is bought by China – sometimes demand is strong from the Asian superpower and sometimes not.

The iron ore price is currently around US$130 per tonne, but it has been under US$90 per tonne a couple of times in the 2020s so far. While BHP and other ASX iron ore shares are able to make big returns right now, thanks to growing demand in China for things like (electric) vehicles, the Chinese property market is currently reportedly weak.

It’s important not to assume that the iron ore price will stay at U$130 per tonne for years or even months.

At the moment, the estimate on Commsec suggests BHP could generate earnings per share (EPS) of $4.10, putting the BHP stock price at 11 times FY24’s estimated earnings.

BHP is a world leader

While the market capitalisation doesn’t necessarily do much to help the company make more profit, its enormous operating scale does help.

It’s one of the biggest mining businesses in the world and one of the lowest-cost miners globally.

In the ‘bad’ times, being a very low-cost operator means that it can continue making a profit even if conditions are bleak. In the good times, it means it can make exceptional profits and returns.

When the business is making good profits it can pay very pleasing dividends. The company currently has a minimum dividend payout ratio of 50%. For FY24, this could translate into a grossed-up dividend yield of 6.9% according to the estimate on Commsec.  

It’s actively diversifying towards greener commodities

BHP is best known for being an iron ore miner, but the company is working on growing its non-iron exposure and earnings.

For example, it recently acquired OZ Minerals which increased its exposure to copper.

It’s also working on a large potash project in Canada called Jansen. Potash is seen as a greener fertiliser, which could be helpful in a decarbonising world. It’s expected to earn an attractive earnings before interest, tax, depreciation and amortisation (EBITDA) margin and have a long economic life.

The world’s commodity demand changes as years go by, so having a greener focus could be increasingly important for BHP stock.

The post 3 things about BHP stock every smart investor knows appeared first on The Motley Fool Australia.

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More reading

• 7 must-see results this ASX reporting season before buying or selling
• Which major ASX mining share will pay the biggest dividend this year?
• Are investors underestimating ASX iron ore big-wigs this earnings season?
• Why is the BHP share price starting the week with a whimper?
• Buy ANZ and this ASX dividend share

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Transurban Group (ASX: TCL) share price is edging higher on Thursday.

Shares in the S&P/ASX 200 Index (ASX: XJO) toll road developer and operator closed yesterday trading for $13.32. In morning trade on Thursday, shares are swapping hands for $13.33, up 0.1%.

For some context, the ASX 200 is up 0.3% at this same time.

This comes following the release of Transurban’s half-year financial results for the six months ending 31 December 1H FY 2024.

Here are the highlights.

Transurban share price gains on revenue increase

• Average Daily Traffic (ADT) increased 2.1% year on year to 2.5 million trips
• Proportional toll revenue increased 6.3% from 1H FY 2023 to $1.76 billion
• Proportional earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at $1.33 billion
• Interim unfranked dividend of 30 cents per share, up 13% from the FY 2023 interim dividend

What else happened during the half year?

Transurban noted that the 2.1% increase in traffic over the half year was driven by growth in all its operational regions, along with the opening of new assets.

Sydney’s Rozelle Interchange opened to vehicles in November. The company said the opening of the interchange completed the final piece of WestConnex.

The Transurban share price is in the green this morning, with the company noting that it managed to keep its operational cost growth at 1.7%. That ran below inflation, meaning that in real terms costs fell.

As at 31 December, Transurban had around $3.4 billion in corporate liquidity. 94.6% of its debt book was hedged.

What did Transurban management say?

Commenting on the update seeing the Transurban share price in the green today, CEO Michelle Jablko said the solid traffic result “combined with disciplined operational and financial cost management, has underpinned the financial performance seen in the first half of FY24”.

Jablko added:

Traffic in Brisbane has continued to grow, well supported by net migration. North America saw improved traffic performance, benefitting from return to office trends. Higher congestion and the time savings offered to our customers resulted in increased average toll prices, further complemented by additional access points opening on the Fredericksburg Extension.

She said that during the half year the company had been working with Google “to provide greater transparency on Google Maps in Australia, further empowering our customers to make informed travel choices”.

What’s next for Transurban?

Looking at what could impact the Transurban share price in the months ahead, the company maintained its FY 2024 dividend guidance at 62 cents per share. That’s up 7% from the full-year payout in FY 2023.

Transurban expects the dividend to include around 4 cents per share from WestConnex cash, which was previously held during construction.

“Longer term, we are well-positioned to deliver disciplined growth through existing opportunities, supporting the significant population growth that is forecast in key markets and emerging mobility trends,” Jablko said.

Transurban share price snapshot

The Transurban share price is down 5% since this time last year.

Shares in the ASX 200 toll road operator are up 13% since the recent lows on 31 October.

The post Transurban share price in the green amid 13% dividend boost appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 Transurban Group. 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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Alliance Nickel Ltd (ASX: AXN) shares are on fire on Thursday.

In morning trade, the ASX mining stock is up a remarkable 83% to 5.5 cents.

Why is this ASX mining stock rocketing?

Investors have been scrambling to get hold of the nickel and critical minerals development company’s shares after it made a major announcement.

According to the release, the company has signed a non-binding term sheet with Samsung SDI for the future offtake of battery grade nickel and cobalt sulphate products from the NiWest Nickel-Cobalt Project in Western Australia.

Korea-based Samsung SDI is a world-leading battery and electronic material manufacturer aiming to redefine the worlds of electric vehicles, energy storage systems, and IT devices.

Subject to final negotiations of the definitive terms and conditions and satisfaction of customary conditions, it will enter into a binding offtake agreement with the ASX mining stock for an initial period of six years.

In addition, it was revealed that Samsung SDI and Alliance Nickel will discuss a potential acquisition by Samsung SDI of an equity interest in a project company to be formed by the latter that will hold the NiWest Project.

Management notes that this approach is consistent with its commercial strategy of aligning offtake agreements and project funding.

‘Delighted’

The ASX mining stock’s managing director and CEO, Paul Kopejtka, was delighted with the news. He said:

We are delighted to introduce Samsung SDI as a new potential long term strategic partner in the NiWest Project, particularly given the current challenging market conditions facing the critical minerals sector.

The term sheet is further validation of the credentials of the NiWest Project, its strategic significance to Tier-one automakers and battery manufacturers and the importance of the supply of specialty materials that comply with the US Inflation Reduction Act. Samsung SDI has an existing business relationship with our strategic partner and cornerstone investor Stellantis N.V. and we look forward to building a strong partnership as we move towards first production from NiWest.

The post Guess which ASX mining stock is surging 80% on deal with Samsung appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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