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The Cochlear Limited (ASX: COH) share price is backtracking on Monday as it trades ex-dividend.

At the time of writing, Cochlear shares are swapping hands for $218.05, down 2.16%.

Below we take a closer look at Cochlear’s latest dividend and when shareholders can expect payment.

Shareholders set eyes on Cochlear interim dividend

Following the company’s half year results, investors are eyeing Cochlear shares as they go ex-dividend today.

Typically, one business day before the record date, the ex-dividend date is when investors must have purchased shares. If the investor does not buy Cochlear shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

When can shareholders expect to be paid?

For those eligible for Cochlear’s interim dividend, shareholders will receive a payment of $1.55 per share on 21 April. Unfortunately, the dividend is unfranked which means investors will miss out on the imputed tax credits.

The latest interim dividend reflects a 35% lift from the $1.15 declared in the prior comparable period.

The payout ratio is 65% of the company’s underlying net profit.

Cochlear share price summary

Since the beginning of 2022, Cochlear shares are around 2% higher in the green.

Cochlear shares reached a 52-week low of $178.55 in January, before surging higher over the following weeks.

Based on today’s price, Cochlear commands a market capitalisation of roughly $14.29 billion and has a trailing dividend yield of 1.17%.

The post Why is the Cochlear (ASX:COH) share price sliding today? appeared first on The Motley Fool Australia.

More reading

• 3 ASX healthcare shares rated as buys by a leading broker
• Keen to bank the Cochlear (ASX:COH) dividend? Here’s what you need to know
• The Cochlear (ASX:COH) share price has bounced back from the pandemic. Are there more gains to come?
• Cheap ASX share better than Woolworths (ASX:WOW)– and it pays dividends
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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. owns and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. 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 charging higher. At the time of writing, the benchmark index is up 0.4% to 7,438 points.

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

Evolution Mining Ltd (ASX: EVN)

The Evolution share price is down 3% to $4.40. Investors have been selling this gold miner’s shares after it was the subject of a bearish broker note out of UBS. According to the note, the broker has downgraded Evolution’s shares to a sell rating with a $4.23 price target.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

The Fisher & Paykel Healthcare share price has continued its slide and is down a further 4% to $21.90. Investors have been selling this medical device company’s shares since the release of a trading update last week. Fisher & Paykel Healthcare advised that it expects FY 2022 operating revenue in the range of NZ$1.675 billion to NZ$1.70 billion. This represents a 13.7% to 15% year on year decline from NZ$1.97 billion in FY 2021. Management also warned that higher freight costs would impact margins.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is down 3.5% to $1.46. This morning the gold miner revealed the impact of COVID-19 disruptions at its Simberi operation. According to the release, Simberi is now forecast to produce between 25-30koz at an all-in sustaining cost (ASIC) of $3,200-$3,600 per ounce in FY 2022. As a result, total FY 2022 production is expected to come to 275-290koz and AISC of $1,750-1,870 per ounce. This compares to its original (previously withdrawn) guidance of 305-355koz with an ASIC of $1,710 to $1,860 per ounce.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down almost 4% to $1.46. Investors have been selling Zip and other tech shares on Monday following a poor night of trade on the Nasdaq index on Friday. In addition, futures contracts are pointing to another decline for the tech-focused index tonight. The S&P ASX All Technology index is down 2.2% at the time of writing.

The post Why Evolution, Fisher & Paykel Healthcare, St Barbara, and Zip shares are falling appeared first on The Motley Fool Australia.

More reading

• Why the St Barbara (ASX:SBM) share price is slipping today?
• These are the 10 most shorted ASX shares
• 3 ASX growth shares down more than 50% in a year
• These were the worst performing ASX 200 shares last week
• Do Zip shares pay dividends?

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

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

There are about 724 billionaires in the U.S., according to Forbes, and more than 2,700 globally. They come from various backgrounds and made their fortunes in various ways. But when you look at their attitudes and behaviors as a whole, there are some traits many of them have in common.

While few of us will ever become billionaires, it may be helpful to know what some of those common traits are to prepare for our own journey to success and financial independence. Here are three key things that billionaires do that many of us don’t, in the words of the billionaires themselves.

1. They’re frugal

“Do not save what is left after spending, but spend what is left after saving,” Berkshire Hathaway Chairman and Chief Executive Officer Warren Buffett once said. This quote encapsulates a mindset that helped Buffett become one of the world’s richest men. You’ve heard the stories — Buffett eats at McDonald’s, lives in the same house he bought in Omaha in 1958 for $31,500, buys used cars, and used a cheap flip phone until a couple of years ago.

But these are habits that allowed him to save more and invest more, which drove his wealth. He’s not alone among frugal billionaires. Microsoft co-founder Bill Gates, who admitted a few years ago to wearing a $10 watch, said his frugal habits were ingrained in him as a young man. “My 20-year-old self is so disgusted with my current self. You know, I was sure I would never fly anything but coach and you know, now I have a plane,” Gates said a couple of years ago, reflecting upon the frugality that made him what he is today.

And Jeff Bezos, founder, former CEO, and executive chair at Amazon, said frugality, for him, was the mother of innovation. “I think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out.”

2. They think big

“Life can be so much broader, once you discover one simple fact, and that is that everything around you that you call ‘life’ was made up by people who were no smarter than you. And you can change it, you can influence it, you can build your own things that other people can use. Once you learn that, you’ll never be the same again,” said the late Steve Jobs, founder of Apple.

Jobs lived this, changing the world with his innovations at Apple. Now, this doesn’t mean we have to go out and invent the next world-changing technology, but experts say that most billionaires think big and aren’t deterred in their endeavors by perceived constraints, whether that’s their education level or something else. Obviously, a lot of hard work and strategic thinking goes into being successful in any venture, but it all starts with having that positive mindset and thinking big, as Jobs described.

Or, as Henry Ford, founder of automaker Ford once said, “If you think you can do a thing or think you can’t do a thing, you’re right.”

3. They’re not afraid to fail

“My dad encouraged us to fail. Growing up, he would ask us what we failed at that week. If we didn’t have something, he would be disappointed. It changed my mindset at an early age that failure is not the outcome, failure is not trying. Don’t be afraid to fail,” said Sara Blakely, founder of hosiery and women’s underwear brand Spanx, who, in 2012, became the world’s youngest, self-made female billionaire.

This philosophy, ingrained in her at a young age, constantly pushed her out of her comfort zone to take on new challenges and risks. Many people avoid actions or activities for fear of failure, but Blakely said that not being afraid to “fail” allowed her the freedom to constantly try new things until she hit on that billion-dollar idea. It helped her avoid the true failure of not trying.

One thing you have in common with billionaires

These are just a few common traits but, certainly, much more goes into becoming wealthy and successful. But it’s really not about becoming a billionaire — it’s about being successful in however you define success. Many billionaires say they weren’t motivated by money, but rather it was an outgrowth of their passion and purpose.

As for the one thing we all have in common, Richard Branson, founder of Virgin Galactic, among other ventures, said it best: “One thing is certain in business, you and everyone around you will make mistakes.” But it is from those mistakes, whether it is in business or investing, that you learn, adapt, and create new opportunities for success.

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

The post 3 differences between you and billionaires, and 1 thing you have in common appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dave Kovaleski owns Ford. The Motley Fool owns and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Microsoft. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Webjet Limited (ASX: WEB) share price has flown in circles over the last decade.

Before 2020, the online travel agent’s shares had a healthy upward trajectory. However, the emergence of COVID-19 put the world at a standstill, with restrictions placed on both domestic and international travel.

This severely impacted Webjet’s operations, sending the business into deep hibernation mode.

Visibility around travel remained unclear for two years. However, things have finally started to take a turn.

Below, we take a look at the power of long-term investing. We will calculate how much you would have made if you invested $10,000 in Webjet shares a decade ago.

What if you had invested $10,000 in Webjet shares 10 years ago?

If you had invested $10,000 in Webjet shares in 2012, you would have bought them for $2.18 a pop. This would have given you approximately 4,587 shares, without topping up during the downward periods.

Fast-forward to today and the current Webjet share price is $5.58. This means that those 4,587 shares would be worth $25,595.46. When looking at percentage terms, this implies a gain of around 155%.

While this is a solid return, let’s not forget that Webjet shares have experienced some severe turbulence en route.

In 2020, the company’s share price plunged from around the $13 mark in February to a multi-year low of $2.25 by April. This represents a massive 82% fall in value over just a few weeks.

Nonetheless, if you were brave enough to hold tight, Webjet has slowly been on the mend in the past two years.

What about the dividends?

Webjet has made 17 dividend payments to shareholders from 2012 to 2022.

Adding those 17 dividends payments gives us an amount of $1.36 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $6,238.32.

When putting both the initial investment gains and dividend distribution, an investor would have roughly $31,833.78, or a $21,833.78 profit.

In comparison, investing the same amount in the ASX 200 would have netted you a total of $17,125.35. Minus the $10,000 that was parked, this gives you a $7,125.35 profit.

As you can see, investing in Webjet would have more than tripled what you would have gotten from investing in the benchmark index.

The post Despite the COVID crash, here’s what $10,000 invested in Webjet (ASX:WEB) shares 10 years ago would be worth now appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
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• Why has March been such a lousy month for the Webjet (ASX:WEB) share price?
• Why has the Webjet (ASX:WEB) share price surged 9% in two weeks?
• These are the 10 most shorted ASX shares

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet Ltd. 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 APA Group (ASX: APA) share price is surging higher on Monday, hitting a new 52-week high in the process.

In intraday trade the company’s stock rose to trade at $10.62 ­– the highest it’s been since November 2020.

At the time of writing, the APA share price is $10.54, 1.74% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.45% on Monday. Meanwhile, the All Ordinaries Index (ASX: XAO) is up 0.37%.

The energy infrastructure company’s gains come after an update on a hydrogen feasibility study it’s involved in.

Let’s take a closer look at what’s going on with the APA share price today.

Is this helping to boost APA’s stock today?

The APA share price is taking off today amid positive results from a feasibility study conducted in Australia’s Mid-West region.

The study is investigating the potential to produce clean hydrogen and ammonia. It’s also developing a multi-staged pathway to the commodity’s production.

It is made up of 4 feasibility studies, of which 2 are now completed, yielding positive results. The remaining 2 studies are expected to be finished in the coming weeks.

Some of the feasibility studies are being funded by a consortium made up of Pilot Energy Ltd (ASX: PGY), APA, and Warrego Energy Ltd (ASX: WGO).

So far, they’ve confirmed the opportunity to create a large-scale clean hydrogen production project for domestic and international markets.

Such a project would use carbon capture and storage and renewable energy generation.

Additionally, the S&P/ASX 200 Utilities Index (ASX: XUA)’s performance might be helping to buoy the APA share price on Monday.

The sector is recording a 0.74% gain at the time of writing. Right now, APA is its best performer.

APA share price snapshot

The APA share price has been outperforming the ASX 200 through 2022 so far.

The company’s shares have gained 3% since the start of this year, while the ASX 200 has fallen around 2%.

However, over the last 12 months, the company’s stock is up just 4% compared to the ASX 200’s 9% gain.

The post Why did the APA (ASX:APA) share price just ink a new 52-week high? appeared first on The Motley Fool Australia.

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• The APA (ASX:APA) share price is up $1 in 7 years. Have the dividends been worth it?
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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 owns and has recommended APA Group. 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 Gold Road Resources Ltd (ASX: GOR) share price is lower today after the company released its financial results for the full year ended 31 December 2021.

At the time of writing, the Gold Road Resources share price is trading at $1.64, a 2.95% drop from the open this morning.

Gold Road share price jumps on earnings growth

Key takeouts from the company’s earnings results on Friday include:

• Revenue from gold sales of $274.8 million, down from 2020 result of $294.7 million
• Average realised gold price of $2,210 per ounce on this revenue, down from $2,330 last year
• Gold sales of 124,335 ounces, down from 126,434 ounces year on year
• EBITDA for the 12-month period totalled $120.2 million, down from $170.6 million in 2020
• EBITDA margin of 44%, down 14 percentage points from 2020 margin of 58%
• Consolidated net profit after tax (NPAT) for the 2021 financial year of $36.8 million, down from $80.8 million in 2020
• 0.5 cents per share dividend fully-franked declared
• Basic earnings per share (EPS) of 4.18 cents – 9.19 cents last year.

What else happened in 2021 for Gold Road?

Earnings were a mixed result for Gold Road as sales came in stronger but didn’t pull through further down the income statement.

Much of this was seen at the operating level as operating cash flow for the 12 months was $89.2 million, down from $142.7 million in 2020.

As a result, the company’s margin on EBITDA of 44% was down 14 percentage points from the 2020 margin of 58%.

Not surprisingly, NPAT thinned by 54% year on year to just $37 million as earnings were compressed throughout the year.

Consequently, EPS was less than half of 2020’s result and group free cash flow for 2021 was $22.1 million, a substantial decrease from $105.5 million last year.

Management commentary

Speaking on the group’s full-year results, Gold Road Managing Director and CEO Duncan Gibbs said:

The year 2021 saw a significant increase in attributable reserves and resources, and positive progress from our exploration efforts at Yamarna. Net profit after tax was $36.8 million for 2021. The Company continued to return income to shareholders in the form of six-monthly dividend payments, and the Board has determined to pay a dividend for the six-months to 31 December 2021 of 0.5 cents.

What’s next for Gold Road?

The company says it has a “strong production outlook” in the coming periods. Its Gruyere asset remains on target to “grow annual production to a sustainable 350,000 ounces per annum by 2023”, the company says.

Meanwhile, it reports its attributable Ore Reserves “grew to 2.23 million ounces, whilst attributable Mineral Resources grew to 4.71 million ounces during 2021”.

Gold Road share price snapshot

In the last 12 months, the Gold Road Resources share price has spiked 36% and is up 6% year to date.

The post Profits slide 54% in FY21 sending Gold Road (ASX:GOR) share price tumbling on Monday 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 Sayona Mining Ltd (ASX: SYA) share price is sitting at 10-year highs.

Shares in the ASX lithium explorer and producer closed yesterday at 23 cents. At the time of writing Sayona shares are trading at 24 cents, up 2.2%.

Indicating the amount of ASX investor interest in the company, CommSec data is that more than 81.6 million shares have been traded by lunchtime today.

A total of 2,152 trades have been executed, with a value of more than $19.5 million.

What’s driving ASX investor interest in the lithium share?

With no fresh news out of the company, there looks to be two factors helping push up the Sayona Mining share price today.

First, global demand for lithium to power the world’s ever-growing fleet of electric vehicles and home battery storage systems is ushering in a new era of rising lithium prices.

That strong lithium demand is an extra boost for Sayona Mining shares. It comes after the explorer earlier this month doubled its mineral resource from management’s previous estimates.

As The Motley Fool reported on the day, “Upgraded resource estimates now peg Sayona’s North American Lithium (NAL) and Authier projects at a combined measured, indicated, and inferred mineral resource of 119.1 million tonnes at 1.05% lithium oxide.”

Also likely offering a tailwind for the Sayona Mining share price is the miner’s recent inclusion in the All Ordinaries Index (ASX: XAO) and the S&P/ASX 300 Index (ASX: XKO).

That means that any funds tracking either of these indexes will now likely include Sayona shares. It also means that fund managers restricted to certain indexes, generally for reasons of minimal-sized market caps, can now trade in Sayona shares.

Sayona Mining share price snapshot

Sayona Mining shares are now up 68% in 2022 and up a whopping 488% over the past 12 months.

For some context, the All Ords has gained 10% over the last 12 months.

The post Why is the Sayona Mining (ASX:SYA) share price rocking a new 10-year high today? appeared first on The Motley Fool Australia.

More reading

• Why is the Sayona (ASX:SYA) share price getting so much love on Friday?
• 5 ASX mining shares smashing 52-week highs today
• Why Brickworks, JB Hi-Fi, Mesoblast, and Sayona shares are charging higher
• Why is the Sayona (ASX:SYA) share price rocketing 19% higher?
• Surging again: Why has the Sayona (ASX:SYA) share price rallied 46% in a month?

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 start the week with a solid gain. At the time of writing, the benchmark index is up 0.45% to 7,436.8 points.

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

APM Human Services International Ltd (ASX: APM)

The APM Human Services share price is up 3.5% to $2.94. Investors have been buying this human services provider’s shares after it announced new contract wins. According to the release, APM has been awarded 44 Workforce Australia contracts across 27 employment regions in Australia.

Firefinch Ltd (ASX: FFX)

The Firefinch share price is up 2.5% to 96.8 cents. This morning the gold and lithium explorer announced that the final conditions have been met regarding Jiangxi Ganfeng Lithium Co’s investment into its Goulamina Lithium Project. The 50:50 joint venture will benefit from a total debt and equity funding package of at least US$170 million.

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price is up 2% to $119.23. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has taken its sell rating off the mining giant’s shares and upgraded them to neutral. UBS made the move after increasing its iron ore price forecasts.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

The Soul Patts share price is up 3.5% to $28.59. Investors have been buying this investment company’s shares after they were the subject of a positive broker note out of Morgans. According to the note, the broker has upgraded Soul Patts’ shares to an add rating with a $30.60 price target. It made the move largely on valuation grounds following recent weakness in its share price.

The post Why APM, Firefinch, Rio Tinto, and Soul Patts shares are charging higher today appeared first on The Motley Fool Australia.

More reading

• What is the outlook for ASX 200 mining shares in April?
• Up 350% in a year, here’s why the Firefinch (ASX:FFX) share price is flying higher on Monday
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• Why Allkem, Firefinch, JB Hi-Fi, and Piedmont Lithium are charging higher
• BHP share price higher on broker upgrade

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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns 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 Bruce Jackson.

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The Lynas Rare Earths Ltd (ASX: LYC) share price is up more than 5% today. It’s currently one of the biggest risers in the S&P/ASX 200 Index (ASX: XJO).

Lynas has also been one of the stronger performers over the past year. Over the last 12 months, the Lynas share price has risen by around 85%.

The materials sector is the strongest-performing sector on the ASX right now. Looking at some of the biggest names, the BHP Group Ltd (ASX: BHP) share price is up 2.44%, the Rio Tinto Limited (ASX: RIO) share price is up 1.94%, and the Fortescue Metals Group Limited (ASX: FMG) share price is up 1.92%.

What’s happening with the Lynas share price?

While there has been no official news from the rare earth miner today, the company’s share price has risen by around 20% since its FY22 half-year result.

The first six months of the current financial year showed a significant year-on-year increase in revenue and profitability.

Revenue rose by 55% to $314.8 million. The cost of sales decreased by 7% to $140.3 million. Net profit after tax (NPAT) surged 286% to $156.9 million.

Management said there is continued “buoyancy” of the market and strong customer demand for a sustainable supply of rare earths. According to Lynas, its customers are optimistic about demand growth, and market conditions are robust. The NdPr (neodymium and praseodymium) market price exceeded US$100 per kilo in November 2021, for the first time since 2011.

The company is investing in several areas in line with its Lynas 2025 strategy. For example, it’s working on a rare earth processing facility in Kalgoorlie and it’s also investing in its Mt Weld resource in Western Australia.

The post Why is the Lynas (ASX:LYC) share price having such a stellar start to the week? appeared first on The Motley Fool Australia.

More reading

• Despite a lacklustre Wednesday, the Lynas (ASX:LYC) share price remains up 20% in a month. Here’s why
• Why are ASX 200 mining shares having such a dire day?
• What’s the outlook for the Lynas (ASX:LYC) share price?
• Up 10% in one week, down 10% in the next. What’s going on with the Lynas (ASX:LYC) share price?
• These were the best performing ASX 200 shares last week

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group 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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Large-cap ASX mining shares are outperforming again today, with the resources sector a key reason why the S&P/ASX 200 Index (ASX: XJO) has also outperformed over the past several weeks.

But some may be wondering if ASX 200 mining shares can keep delivering the goods next month after their strong run.

Some experts believe they can. In fact, they claim we may be only at the start of a significant earnings upgrade cycle, according to the Australian Financial Review.

Bright outlook for ASX 200 mining shares

Analysts have been slow to lift their commodity price assumptions even as metals and energy prices have soared.

The war in Ukraine and ongoing bottlenecks caused by the COVID-19 pandemic appear to be forcing prices higher.

The gap between consensus forecasts and spot prices have widened further this quarter. This gap is likely to remain large given the prices commodities are fetching in the futures market.

Playing catch-up to rallying prices

The AFR noted that this could trigger large upgrades for ASX 200 mining shares and energy shares.

Ben Cleary, portfolio manager of the Tribeca Natural Resources Fund, told the publication:

The quarterly earnings and forecast revision cycle usually comes out around this time and analysts are only just playing catch up now.

They probably started the year too bearish on commodity prices anyway and the prices are going to have to be upgraded.

And just in case you were wondering, this situation where analysts are rushing to play catch up is not uncommon. If anything, analysts have a history of being slow to lift forecasts when volatile commodities rally.

Morgan Stanley is one that is moving to close the gap. It upped its zinc forecast by a whopping 48% to US$1.72 a pound, reported the AFR.

Commodities with large upgrades

It also increased its nickel estimates by 19% to US$12.48 a pound and iron ore by 9% to US$155 a tonne.

For iron ore, this brings the broker a lot closer to spot price than many of its peers, who have pencilled in a price of less than US$100 a tonne for 2022.

The upgrades for energy-related commodities are even larger for Morgan Stanley. Its forecast for lithium carbonate is now 225% higher at US$46,000 a tonne, while thermal coal is upgraded by 96% to US$255 a tonne.

Good news for miners

As other analysts follow Morgan Stanley’s move, we can potentially see a big valuation lift for several ASX 200 mining shares.

That’s good news for the share prices of ASX iron ore miners including BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG), as well as the major lithium players.

The post What is the outlook for ASX 200 mining shares in April? appeared first on The Motley Fool Australia.

More reading

• Why is the Rio Tinto (ASX:RIO) share price up today?
• The BHP dividend is being paid today. Here’s what you need to know
• How big will the Fortescue (ASX:FMG) dividend be in 2022?
• Here are 2 ASX 50 dividend shares analysts rate as buys
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Brendon Lau owns BHP Billiton Limited, Fortescue Metals Group Limited, and Rio Tinto Ltd. 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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