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The share price of ASX energy stock Melbana Energy Ltd (ASX: MAY) is surging today, hitting its highest point since 2012.

Its gains come despite no news having been released by the oil and gas producer. Additionally, the S&P/ASX 200 Energy Index (ASX: XEJ) is plunging 2.91%.

At the time of writing, the Melbana Energy share price is 13 cents, 8.7% higher than its previous close.

Let’s take a look at what might be boosting the ASX energy producer’s shares today.

Why is the Melbana Energy share price soaring today?

The Melbana Energy share price is launching upwards today despite the energy sector retreating after its 5.25% gain yesterday.

The sector’s struggles come as the energy prices wobble.

Right now, West Texas Intermediate futures have recovered from a dip to trade at US$119.85 a barrel ­– up 0.3%, according to CNBC. Brent crude futures are 0.8% higher, trading at US$124.20 a barrel.

Meanwhile, natural gas futures have dropped 1.9% to US$4.74 per metric million British thermal unit.

That’s weighing on oil giants Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL), and Beach Energy Ltd (ASX: BPT). Their share prices are slumping 3.37%, 3.28%, and 2.54% respectively today.

However, Melbana hasn’t been tracking its sector lately.

The ASX energy share has gained a whopping 456% year to date. That was largely driven by a 78% surge experienced by the stock when the company announced the finding of a “significant oil interval” last month.

It gained another 25% yesterday as oil prices soared to their highest point in 13 years.

Meanwhile, the energy sector is up a respectable 20% year to date, including today’s dip.

Perhaps that’s why the small-cap ASX energy share is defying the broader market today.

The post This ASX energy share is combatting its sector’s sell-off to hit 9-year highs appeared first on The Motley Fool Australia.

More reading

• Melbana (ASX:MAY) share price jumps 6% on exploration approval

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

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Qantas Airways Limited (ASX: QAN) shares are coming under renewed pressure.

Just as the 2-year long pandemic related travel restrictions are lifting across its major markets, the cost of fuel – a major cost for airlines – is heading skywards following Russia’s invasion of Ukraine.

While Brent crude oil dipped 0.7% overnight, it remains at a more than 10-year high of US$122 per barrel. That’s up from US$78 per barrel on 1 January and $91 per barrel just 1 month ago.

Over that month, Qantas shares have fallen 17%.

So, how is the S&P/ASX 200 Index (ASX: XJO) airline responding to fast rising fuel costs?

Recovering the costs of fuel

Qantas chief financial officer Vanessa Hudson said that higher ticket prices are among the airline’s plans to tackle rising fuel costs.

Hudson said (quoted by Bloomberg), “The group is very well placed to be able to recover the cost of fuel if it stays at the levels that it is at the moment.”

Hudson also pointed out that Qantas’ oil exposure is 90% hedged through June. That will help insulate the company from the immediate impact of rocketing crude prices and offer some support for Qantas shares.

As for lifting airfare prices, Hudson said:

What you need for that is strong underlying demand and relatively stable and rational capacity, and right now we are seeing that. We’re seeing very strong leisure demand coming across both our domestic and our international markets.

She added that all of Qantas’ major markets for international travel, such as the United Kingdom and the United States are open. And that with Western Australia rejoining the nation, all of its domestic markets are open now without restriction as well.

And people are eager to resume travelling. “The intent to travel over the coming year is as high as it’s ever been,” Hudson said.

How have Qantas shares been tracking?

Qantas shares are down 11.5% in the new year. That compares to a year-to-date loss of 7.6% posted by the ASX 200.

The Qantas share price remains down more than 35% from its pre-pandemic levels.

The post Qantas (ASX:QAN) shares have slumped 17% in a month. So how is the airliner responding to rising oil prices? appeared first on The Motley Fool Australia.

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• Why is the Qantas (ASX:QAN) share price diving 7% today?
• The oil price just hit a 13-year high, and these ASX 200 shares are surging
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• Qantas (ASX:QAN) share price dives 4% amid escalating Ukraine fears

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 losing steam and starting to slide lower. At the time of writing, the benchmark index is down 0.4% to 7,012.1 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher:

CSL Limited (ASX: CSL)

The CSL share price is up 3% to $256.98. Investors have been buying this biotherapeutics giant’s shares following reports that the TGA has approved a super flu jab by its Seqirus business for children as young as two years old. The Flucelvax Quad vaccine was the first cell-based seasonal influenza vaccine offered in Australia when it was first approved in 2021. Prior to TGA approval, CSL had distributed 100 million doses globally.

Incitec Pivot Ltd (ASX: IPL)

The Incitec Pivot share price is up almost 2% to $3.53. This morning the agricultural chemicals company’s shares were upgraded by analysts at Credit Suisse. According to the note, the broker has put an outperform rating and $3.85 price target on its shares. It believes Incitec Pivot will benefit from higher fertiliser prices.

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price is up 2% to $1.01. This appears to have been driven by news that the lithium explorer has raised $39 million through an at-the market raise. As per its agreement with Acuity Capital, it has raised the funds through the issue of 40 million shares at 97.5 cents per new share.

St Barbara Ltd (ASX: SBM)

The St Barbara Ltd (ASX: SBM) share price is up 8% to $1.53. Investors have been bidding this gold miner’s shares higher today amid speculation it could be a takeover target. Nearby peers Northern Star Resources Ltd (ASX: NST) and Ramelius Resources Limited (ASX: RMS) could reportedly be interested in the beaten down gold miner’s Gwalia underground mine and processing plant.

The post Why CSL, Incitec Pivot, Lake Resources, and St Barbara are pushing higher appeared first on The Motley Fool Australia.

More reading

• CSL (ASX:CSL) share price lifts following new regulatory approval
• ASX 200 (ASX:XJO) midday update: CSL and St Barbara charge higher
• Here’s why the St Barbara (ASX:SBM) share price is leaping 8% on Tuesday
• 5 things to watch on the ASX 200 on Tuesday
• These 3 ASX 200 shares are topping the volume charts this Monday

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 CSL 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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The Bapcor Ltd (ASX: BAP) share price in heading south during early afternoon trade on Tuesday. This follows the news that the companies has confirmed an impending reshuffle in the leadership team.

At the time of writing, the auto parts retailer’s shares are exchanging hands for $6.11, down 2.24%.

Bapcor COO hands in notice to take on new position

The Bapcor share price is in negative territory today as investors react to the latest news.

According to an article published by the Australian, Bapcor has confirmed that its chief operating officer, Mr Nicol has resigned.

While the departure date has not been set, Mr Nicol will leave the company within the next few months. This will see him take on a new role as CEO in the flooring industry.

Mr Nicol joined Bapcor in July 2019, overseeing an array of functions that included logistics, IT, group procurement, and branding strategy.

Most notably, Mr Nicol was heavily involved in the company’s new Victorian distribution centre, which opened in 2021.

The 50,000 square metre warehouse services Bapcor’s 32 business units and 1100 locations in Australia and New Zealand. 

The company didn’t note a successor to the COO role; however, it’s almost certain that a transition process will occur.

Bapcor share price snapshot

Over the past 12 months, the Bapcor share price has lost about 14%, with most of these losses coming in 2022.

It’s worth noting that the company’s shares reached a 52-week low of $6.03 today following weak investor sentiment.

Based on valuation grounds, Bapcor commands a market capitalisation of roughly $2.07 billion, with 339.41 million shares outstanding.

The post Why is the Bapcor (ASX:BAP) share price underperforming today? appeared first on The Motley Fool Australia.

More reading

• 2 cheap ASX shares for value investors to buy in March 2022: experts
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• Here are the top 10 ASX shares today
• Why Bapcor, Mineral Resources, Nanosonics, and Syrah shares are falling today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor. 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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Picking ASX shares that prove to be dividend winners is always a tricky game. As is any other kind of investing for that matter. But it’s the unique metrics that dividend investors have to navigate which makes this area of investing a little more unique. All investors know upfront what kind of dividends an ASX share has paid out over the past 12 months. And, by extension, the kind of dividend yield each ASX share may possess.

But as investors should know, just because an ASX share has a high dividend yield, it doesn’t mean investors can take that to the bank. A common investing mistake is to choose an ASX dividend share due to a seemingly fat yield, only to have that yield pared back. Not to mention a simultaneous share price fall to boot. This scenario is often described as a ‘dividend trap’.

So let’s look at some ASX shares today that seem to be offering outsized yields right now. Could any of them be a dreaded dividend trap?

When is a high dividend yield just trap bait?

Magellan Financial Group Ltd (ASX: MFG) is one such share. Magellan has had a horrible year, losing around 66% of its value. But this has pushed up Magellan’s trailing dividend yield to an eye-watering 15.57% on current pricing. The interesting thing about Magellan is that when the company reported its half-year earnings last month, it declared an interim dividend of 110.1 cents per share, which coincidentally was paid out today.

That was Magellan’s highest-ever interim dividend. So why aren’t investors flocking to this company’s massive 15%-plus yield? Well, Magellan makes its money from its funds management business. And the company has been experiencing record fund outflows over the past few months for a number of reasons.

So it seems that investors are betting that this outflow will start to bite the company’s ability to keep funding dividends at these kinds of levels. We’ll have to see if this turns out to be the case, but at least one broker isn’t too sure it will.

Another ASX dividend share with a 15% yield right now

Fortescue Metals Group Limited (ASX: FMG) is another ASX dividend share seemingly offering a monster dividend yield right now. On current pricing, the iron ore giant has a trailing dividend yield of close to 15.5%. That’s even after the company cut its interim dividend by 41% as announced in its earnings last month. The cut was the result of Fortescue directing more capital towards its emerging Fortescue Future Industries hydrogen business.

Fortescue’s profits (and dividends) are intrinsically tied to the price of iron ore itself. Last month, Fortescue announced that its average revenue per dry metric tonne over the half was US$96. But iron ore has continued to boom in recent months, and is now going for a six-month high above US$160 a tonne.

If the iron ore price continues to hold at these levels, and Fortescue can continue to extract it at relatively low costs (made harder recently by surging oil prices), we could well possibly see dividends continue to roll in at these high rates. But again, we shall have to wait and see.

The post 15% yield! But are these ASX high-yield shares dividend traps? appeared first on The Motley Fool Australia.

More reading

• Down 31% this year: Top broker tips more pain for Magellan (ASX:MFG) share price
• ASX 200 (ASX:XJO) midday update: CSL and St Barbara charge higher
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends

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 Bruce Jackson.

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The Woodside Petroleum Limited (ASX: WPL) share price is dipping into the red today.

At time of writing, shares in the S&P/ASX 200 Index (ASX: XJO) energy giant are down 2.6% to $33.52.

But don’t go breaking out your tiny violin for Woodside shareholders just yet.

Today is the first time in 7 trading days that the Woodside share price has gone backwards.

Yesterday, shares closed at $34.41. That’s the highest price in more than 2 years, going all the way back to February 2020 before the pandemic knocked the stuffing out of oil and gas prices.

What’s happening with the Woodside share price?

It’s not just Woodside coming under some selling pressure today.

The S&P/ASX 200 Energy Index (ASX: XEJ) is down 2.7%, compared to a 0.2% retreat on the ASX 200.

Why are ASX energy shares underperforming?

It all boils down to oil and gas prices.

After soaring higher all month following oil-rich Russia’s aggressive posturing and then invasion of Ukraine, crude oil prices dipped overnight. Brent crude fell 0.7% to US$122 per barrel, according to data from Bloomberg.

While that’s no major fall, and still up from US$91 per barrel just a month ago, investors may be looking to take some profits off the table after riding ASX energy shares to multi-year highs.

As for the Woodside share price, despite today’s retrace it remains up 48% for the year.

The post Woodside (ASX:WPL) share price slips for first time in 7 days appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Woodside (ASX:WPL) share price surges another 9% today as oil resumes rally
• Why Argosy Minerals, De Grey, Whitehaven, and Woodside shares are racing higher

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 Magellan Financial Group Ltd (ASX: MFG) share price is enjoying a rare day in the green today and is now up 1.67% at $14.59.

However, it’s been a tumultuous year for Magellan shareholders who have seen the stock lose 66% of its value in the past 12 months. It is also down 31% this year to date.

As shown below, the gap between the benchmark S&P/ASX 200 Index (ASX: XJO) and the Magellan share price is widening substantially as time goes on.

One broker thinks it’s unlikely the fund manager’s shares will return to their former high, at least in the near term. It cites February’s underperformance across each of Magellan’s three investment strategies. Here’s what UBS analysts had to say recently.

More downside to come for Magellan?

Analysts at Swiss investment bank UBS are bearish on the Magellan share price and reckon there is more pain ahead for shareholders.

The broker notes that February was a poor month for the fund manager, with each of its core strategies underperforming their respective benchmarks.

Originally it was just the global strategy’s performance that had been called into question. However, UBS points out the underperformance has crept its way into the infrastructure product as well – such that three-year rolling returns are now negative.

The risk for Magellan, according to UBS, is that this underperformance stems the volume of outflows in its infrastructure fund as it did to the global strategy.

This “outflow risk” is unlikely to have been factored into consensus forecasts and earnings estimates, UBS says.

UBS has rated Magellan a sell since September last year and currently holds that rating with a $13.50 price target.

Meanwhile, JP Morgan also just downgraded Magellan to underweight, citing valuation and the business risks it is facing.

“However, we remain cautious on the outlook for MFG, noting substantial pressures that the business is facing,” it said in recent note.

JP Morgan analysts also highlight the outflow risk, and that inflows are “likely to remain weak from recent events, including Mr Douglass’ leave of absence triggering mandate losses”. Chairman and chief investment officer Hamish Douglass recently took a medical leave of absence to focus on his health.

“We expect the stock to remain under pressure until fund performance improves and the near-term fund flow profile stabilises,” it added.

According to Bloomberg Intelligence, 64% of brokers have Magellan as a sell right now, with just one broker advocating to buy. Curiously, these numbers are basically unchanged from a year ago.

Magellan share price summary

It’s a sea of red for the Magellan share price over all recent time periods. In addition to its big falls over the past 12 months and this year to date, it is also down 11% over the past month and nearly 21% over the past week.

The post Down 31% this year: Top broker tips more pain for Magellan (ASX:MFG) share price appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL and St Barbara charge higher
• Top brokers name 3 ASX shares to sell next week
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• Playing limbo… Magellan (ASX:MFG) share price hits 7-year low
• Why Magellan, Nick Scali, Qantas, and Zip shares are tumbling today

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

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It’s a rough day on the broader market, but these ASX mining shares are performing just fine.

They’ve each surged to their highest point in at least 12 months on Tuesday.

That’s despite the S&P/ASX 200 Index (ASX: XJO) slipping 0.12% while the All Ordinaries Index (ASX: XAO) is down 0.26% at the time of writing.

Additionally, the S&P/ASX 200 Resources Index (ASX: XJR) is in the red, having plunged 2.17%.

So, what’s boosted these ASX mining shares to new 52-week highs today? Let’s take a look.

These ASX mining shares hit new 52-week highs on Tuesday

Westgold Resources Ltd (ASX: WGX)

The Westgold share price is continuing its upward momentum on Tuesday, gaining 4.2% in intraday trade to reach a new 52-week high of $2.46.

The stock is likely being boosted by the rising gold price. After moving higher overnight, the price of gold is continuing to trade in the green for most of today’s session so far.

The commodity’s price was driven to its highest point since 2020 amid concerns of Russia’s invasion of Ukraine and rising oil prices, as reported in the Wall Street Journal.

Zimplats Holdings Ltd (ASX: ZIM)

The Zimplats share price has also launched to its highest point in 12 months today.

Its intraday high – and new 52-week high – is $29.73. That represents a 5.1% gain on its previous close.

The platinum group metals producer’s gains come as precious metals prices surge.

According to News24, the price of palladium – as well as platinum – has also soared amid Russia’s continued assault on Ukraine.

Russia is responsible for a hefty chunk of the world’s palladium production.

Red 5 Limited (ASX: RED)

Another ASX gold mining share has topped its own 12-month record today.

The Red 5 share price hit a new 52-week high of 34.5 cents, representing a 4.5% increase on its previous close.

AngloGold Ashanti CDI (ASX: AGG)

It’s a similar story for stock in AngloGold Ashanti.

It hit a new 52-week high of $7.10 earlier today. That’s 3.9% higher than its share price was at the end of Monday’s session.

Nickel Mines Ltd (ASX: NIC)

Finally, the Nickel Mines share price launched higher in early trade before tumbling into the red.

After opening 6% higher at $1.75, the ASX mining share hit a new 52-week high of $1.79.

It has since tumbled to trade at $1.61 — that’s 2.27% lower than its previous close.

Once again, commodity prices are likely behind the stock’s gain.

As The Motley Fool Australia reported earlier today, nickel prices have shot up amid supply concerns sparked by the Russian invasion of Ukraine.

It’s harder to explain Nickel Mines’ subsequent tumble. However, it’s joined in the red by fellow nickel producers IGO Ltd (ASX: IGO) and Mincor Resources NL (ASX: MCR).

The post 5 ASX mining shares smashing 52-week highs today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Nickel Mines (ASX:NIC) share price just hit an all-time high
• The price of nickel is soaring and these ASX mining shares are cashing in
• Here’s why ASX gold shares are having another stellar day
• Nickel Mines (ASX:NIC) share price surges 6% on full-year earnings
• Why has the Nickel Mines (ASX:NIC) share price dumped 15% in a month?

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

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The CSL Limited (ASX: CSL) share price is currently up by 3%. It has been reported that its new influenza vaccine has been approved by regulators for younger people.

CSL is one of the world’s largest biotech businesses with a large vaccine division.

Latest win for CSL

The Australian has reported that the new generation of CSL’s influenza vaccine has received regulatory approval.

This is the new type of cell-based influenza vaccine called Flucelvax Quad. According to CSL, this is significantly more effective than the protein-based vaccines that are grown in eggs and it can also be produced at a significant scale at shorter notice.

It was a year ago that CSL received approval for the vaccine’s general use. The ASX healthcare share has sold over 100 million doses of it since the Therapeutic Goods Administration gave approval.

This vaccine has now been approved for children down to the age of 2 years old. It was reported by the newspaper that sales “are expected to soar”.

This could be an important factor to reduce hospitalisations

The Australian quoted CSL’s Jonathan Anderson, who is the head of medical affairs at Seqirus – the vaccine division of the ASX healthcare share.

With our healthcare system facing pressure from COVID-19 and influenza this winter, achieving high influenza vaccination coverage is crucial in ensuring we help to reduce the strain on hospitals.

This is even more important this year, and the expanded approval of Flucelvax Quad will be timely to give patients and health care professionals additional options.

The fact that much younger children are now eligible for this could be helpful because children that are under five are at more risk of severe flu, according to NSW Health.

Is the CSL share price an opportunity?

Since the start of 2022, the CSL share price has fallen by 13%.

During that time, the healthcare business has reported its FY22 half-year result. Whilst revenue increased 4%, net profit after tax (NPAT) fell by 5% in constant currency terms to $1.76 billion. The company said that there was a strong performance by the influenza vaccine business, Seqirus, which saw seasonal flu vaccine sales up 20%.

A new cell culture influenza vaccine facility has commenced construction in Australia.

CSL has received strong support from Vifor shareholders for the acquisition and plans to declare the offer successful. It said 74% of the shares have been tendered. The regulatory approval process for the acquisition is “on track” as well and management is confident that the remaining conditions will be satisfied.

Citi thinks that the CSL share price is a buy, with a price target of $335 – that’s a potential upside of around 30%.

On Citi’s numbers, the CSL share price is valued at 30x FY23’s estimated earnings.

The post CSL (ASX:CSL) share price lifts following new regulatory approval appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL and St Barbara charge higher
• 2 blue chip ASX 200 shares analysts rate as buys this month
• Payday? Here’s why the CSL share price is sliding this morning…
• ASX 200 (ASX:XJO) midday update: Block, Zip tumble, QBE’s asset sale
• The CSL (ASX:CSL) share price is falling today, but here’s what investors can look forward to next week

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 CSL 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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A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So, we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.”

_________________

The Nickel Mines Ltd (ASX: NIC) share price hit an all time high today amid surging nickel prices.

The company’s shares are currently trading at $1.577 each, a 4.42% fall. However, in earlier trade, the Nickel Mines share price hit an all time high of $1.77. This represented a 7% increase on the previous closing price of $1.65.

Let’s take a look at what is happening with Nickel Mines shares today.

Nickel prices hit record prices

Nickel Mines shares hit an all time today on the back of record nickel prices on commodity markets. The nickel price shot up 90% to an all-time high on global markets overnight, according to a report on NAB trade.

Supply chain concerns are impacting the nickel price amid the Russian invasion of Ukraine.

Economic sanctions being imposed on Russia are sparking fears of a shortage, given Russia supplies 10% of the world’s nickel.

Citi analysts are optimistic about nickel prices in the short term, a report cited by NAB stated. The note said:

Analysts at Citi are bullish on near-term nickel prices, citing supply concerns stemming from heightened Russia-Ukraine conflict; sees miners benefiting from price surge.

The Nickel Mines share price has surged 22% since market close on 22 February alone.

On 23 February, the company’s shares gained more than 8%. In its financial results for the full year ended 31 December, Nickel Mines reported a 31% boost in profit from US$165.1 to to US$216.8 million.

Nickel is used in batteries for electric vehicles (EV) and in the production of stainless steel. EV sales are predicted to hit 20 million by 2025 and more than 70 million by 2040.

The company acquired an 80% interest in the Angel Nickel RKEF project during the year. Nickel Mines also recently completed the acquisition of an initial 10% of the Oracle Nickel Project in Indonesia. By 22 December, the company plans to own 70% of the mine.

Nickel Mines share price snapshot

The Nickel Mines share price has soared 25% in the past year and is up 13% year to date.

In the past month, the miner’s shares have surged 11% and have gained 6% in the past week alone.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 4% over the past year.

The post Here’s why the Nickel Mines (ASX:NIC) share price just hit an all-time high appeared first on The Motley Fool Australia.

More reading

• The price of nickel is soaring and these ASX mining shares are cashing in
• Nickel Mines (ASX:NIC) share price surges 6% on full-year earnings
• Why has the Nickel Mines (ASX:NIC) share price dumped 15% in a month?
• Nickel Mines (ASX:NIC) share price slides despite ‘clear endorsement’
• ‘Building a Nickle Empire’: Nickel Mines (ASX:NIC) seizes future-facing nickel opportunities

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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