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We have some big ASX 200 news to report this Wednesday. The S&P/ASX 200 Index (ASX: XJO) has just hit a new all-time high.

Aussie shares had been threatening to crack the record set in August 2021 for the past week or so. Yesterday saw the ASX 200 Index get tantalisingly close to cracking its previous high watermark, getting within three points of the record at one stage.

But investors have blown through yesterday’s high of 7,630.5 points with ease during today’s session. The ASX 200’s previous 2021 record high was 7,632.8 points. But just after 1 pm today, the ASX 200 climbed up to 7,643.5 points – its new reigning record high.

Today’s gains put the ASX 200 Index up 0.2% year to date in 2024, as well as up 2.23% over the past 12 months. However, the Aussie share market is also up a far more impressive 12.8% since the end of October 2023.

Why is the ASX 200 Index clocking record highs today?

Yesterday, we discussed a few reasons why investors have flooded back into ASX 200 shares over the past few months, pushing up the index to where it is today. Amongst the factors we discussed were falling inflation amid a strong economy with low unemployment, an expectation of lower interest rates by the end of the year, and a surging American stock market.

Well, it seems that the first two factors are what’s likely to have helped push ASX 200 investors over the top today.

Earlier this morning, my Fool colleague Bernd discussed the latest inflation statistics for the Australian economy. They were released by the Australian Bureau of Statistics (ABS) earlier today. He also went into the implications for the ASX 200 Index.

As discussed, commentators were expecting inflation to come in at an annualised 4.3%. Instead, inflation in the 12 months to 31 December dropped to 4.1%. My colleague astutely noted that this is “a massive improvement on the blistering 7.8% peak annual CPI levels reported in December 2023”.

So we have Australian inflation running at 4.1%. And yet the Reserve Bank of Australia (RBA)’s cash rate is still sitting at 4.35%. So you can see where we’re going next.

Falling inflation key to new ASX highs

This latest data will arguably give the RBA a strong incentive to make sure the next interest rate move is a cut, rather than a hike. If the RBA keeps the cash rate above the level of inflation for a prolonged period, it could increase the risk of a recession.

As such, it appears investors are rapidly bringing forward their expectations for a rate cut today in light of this latest data. Interest rates were once described by legendary investor Warren Buffett as the ‘gravity’ of the financial world. The higher they are, the more they pull every asset’s valuation down. And that includes ASX 200 shares.

There’s little doubt that the stagnation that the ASX 200 Index went through between August 2021 and August 2023 was at least partially due to the massive rate hiking spree the RBA went on during this period. But now investors are pencilling in rate cuts, and sooner rather than later, it’s no surprise to see investors enthusiastically flocking back into ASX 200 shares.

Let’s see how many more record highs the ASX 200 Index will give us in 2024.

The post Big ASX 200 news! Aussie shares just reached a new record high appeared first on The Motley Fool Australia.

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More reading

• ASX 200 off to the races as Australia’s inflation data surprises to the downside
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• ASX 200 record! Here’s why Aussie shares are on the cusp of a new all-time high
• 5 things to watch on the ASX 200 on Tuesday

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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 S&P/ASX 200 Index (ASX: XJO) lithium shares haven’t had an easy time of it recently.

To say the least.

ASX lithium stocks, large and small, have taken a beating amid a massive fall in global lithium prices.

While relatively stable over the past month, the lithium price is down more than 80% since the November 2022 highs, with prices down some 50% over the past six months alone.

With that headwind in mind, here’s how these four ASX 200 lithium shares have performed over the past six months:

• Pilbara Minerals Ltd (ASX: PLS) shares are down 26%
• Core Lithium Ltd (ASX: CXO) shares are down 70%
• IGO Ltd (ASX: IGO) shares are down 43%
• Liontown Resources Ltd (ASX: LTR) shares are down 62%

For some context, the ASX 200 has gained 2.7% over this same period.

Those certainly aren’t the kinds of results investors want to see.

But the pain for ASX 200 lithium shares may not be over quite yet.

More headwinds ahead for ASX 200 lithium shares?

Much of the pressure on global lithium prices over the past year has come as exploration and mining activity for the battery-critical metal have ramped up. This has seen supplies increase faster than demand growth.

To be clear there’s still plenty of growth ahead for the EV industry, and for those ASX 200 lithium shares that can weather the current pullback.

However, in another potential headwind for lithium producers and explorers alike, the growth rate in global EV markets is slowing markedly.

China ends subsidies

China, the world’s biggest consumer of lithium, recently ended EV subsidies and other incentives for the industry.

And that looks to already be having a marked impact on the growth outlook for EV sales, potentially impacting the demand for lithium from ASX 200 lithium shares.

According to the China Passenger Car Association (courtesy of Bloomberg), China’s EV and plug-in hybrid vehicle deliveries to dealers is forecast in increase to 11 million in 2024. While that’s still 25% higher than last year, it represents a slowdown from 36% in 2023 and a whopping 96% in 2022.

But it’s not just China’s slowing growth figures that could hit ASX 200 lithium shares in 2024.

Supply and demand

“Global EV momentum is stalling. The market is over-supplied versus demand,” Morgan Stanley analyst Adam Jonas said (quoted by Reuters).

In the United States, the world’s biggest economy, General Motors Co (NYSE:GM) is prepared to adjust its EV goals and potentially boost its planned manufacturing of internal combustion engine (ICE) vehicles.

“It’s true, the pace of EV growth has slowed, which has created some uncertainty. We will build to demand,” GM CEO Mary Barra said.

GM CFO Paul Jacobson added, “We know the EV market is not going to grow linearly. We are prepared to flex between ICE and EV production.”

Tim Piechowski, portfolio manager at ACR Alpine Capital Research, said (quoted by Reuters):

There’s no doubt that the limitations – EV charging and the lack of battery resiliency at low temperatures – are causing consumer anxiety.

The reality is that the adoption curve will be slower and there will be pushback to regulators about fuel economy. It’ll just be a longer ramp than perhaps was initially anticipated.

It’s with that longer ramp in mind that we’ve recently seen a number of ASX 200 lithium shares reduce their expansion plans. Or, in the case of Core Lithium, even temporarily halt mining operations to conserve cash.

Of course, it is still a growing industry. Just not quite as fast as many investors had been hoping.

The post Uh oh! Does this spell more bad news for ASX 200 lithium shares? appeared first on The Motley Fool Australia.

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More reading

• Liontown share price slips as plunging lithium price outweighs pending maiden production
• Why are IGO shares crashing 9% on Wednesday?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Top 5 most profitable ASX large-cap shares of 2023

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 recommended General Motors and has recommended the following options: long January 2025 $25 calls on General Motors. 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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S&P/ASX 300 Index (ASX: XKO) stock Select Harvests Ltd (ASX: SHV) has jumped 16% after the company released an exciting 2024 update.  

The Australian almond grower is benefiting from an improving situation for pricing and a healthy crop update.

Favourable conditions for 2024 crop

Select Harvests revealed that the 2024 crop is in the final stages of the growing cycle and the harvest is expected to start next week, which is two weeks earlier than normal. It’s finalising pre-harvest preparations across all sites.

The ASX 300 stock said the current weather forecast for the harvest period is “favourable” and the crop is forecast to exceed 30,000MT and return to a “quality profile” in line with long-term averages.

Pleasingly, the company said its initiatives are continuing to reduce production costs, while the recent cooler and wetter weather has led to lower requirements for water, irrigation electricity demand and a decline in water pricing.

It expects “further value” to be created as it continues to work on and deliver its current projects and identify additional opportunities.

Improving market conditions

Select Harvests said global almond market conditions are “increasingly positive”.

The ASX 300 stock pointed to key US industry participants, such as growers, marketers and processors, are forecasting that the US 2023 crop will be approximately 6% to 12% lower than the USDA 2023 objective estimate.

On top of that, the US 2023 crop is forecast to be of lower quality with increased instances of navel orange worm damage and sub-optimal sizing, with a doubling of the normal defect rate being reported by the Almond Board of California.

December 2023 saw the fourth consecutive month of US shipments growth, according to the Almond Board of California Position Report. The 2023-2024 year-to-date US shipments are up 9.9%, with “improvements in export markets and the US domestic market remaining steady”.

Unsurprisingly, the US inventory levels have decreased year over year and are currently at 1.8 billion pounds, 13.4% lower than December 2022. The forecast 2024 carryout inventory has reduced to 0.6 billion – that’s 21.9% lower than the 2023 carryout position.

Pricing for Select Harvests’ almonds

Select Harvests said its 2023 export program is complete. All remaining inventory is planned to maintain value-add production and domestic customer contracts.

Market prices for almonds are “rising”, particularly for higher grade material, and export markets are becoming “increasingly active. Based on a normal crop profile Select Harvests’ net sell price is currently above A$7.50 per kg and “may increase further based on market demand.”

Marketing of its 2024 crop began in January, with approximately 10% pre-sold at “attractive pricing levels.” More than 60% of the 2024 crop is hedged at an Australian dollar to US dollar exchange rate of 0.66.

The other financial aspect of the ASX 300 stock’s update revealed that its debt position remains “on track” and that the company remains within its facility headroom and covenants are forecast to be met.

Select Harvest share price snapshot

Despite today’s strong rise, the company is still down more than 8% in the past year.

The post Up 16%! A strong update is sending investors nuts over this ASX 300 stock appeared first on The Motley Fool Australia.

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More reading

• Why Bubs, Champion Iron, Playside Studios, and Select Harvests shares are charging higher

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 S&P/ASX 200 Index (ASX: XJO) and most ASX 200 stocks have had a phenomenal run over the past week or two.

It was only back on 18 January that the ASX 200 was sitting at under 7,350 points. But fast forward to today, and that same index has vaulted up to over 7,600 points. That’s a rise worth more than 3.6%. Just yesterday, we also saw the ASX 200 get within a whisker of its all-time record high.

But let’s talk about one ASX 200 stock that puts those gains to shame.

It’s ASX 200 nickel producer Nickel Industries Ltd (ASX: NIC). Nickel Industries shares have enjoyed an extraordinary run over the past six trading days. Back on Tuesday 23 January, the company was asking 56 cents a share. But today, those same shares are going for 79 cents each.

That’s up a whopping 8.97% today alone, as well as up over 41% from 23 January.

So what on earth is going on with this ASX 200 nickel stock that has prompted this incredible spike in value for investors?

ASX 200 stock catapults after positive quarterly update

Well, it seems the biggest contributor to this jump in value is Nickel Industries’ latest quarterly earnings report. Of the 40% or so the ASX 200 stock has jumped in the past six trading days, more than 30% of those gains occurred yesterday and today thus far.

Released yesterday, this report revealed both record nickel production and sales volumes. As we went through at the time, Nickel Industries reported production of 34,450 tonnes of nickel over the three months to 31 December. That was up from 29,367 tonnes over the previous quarter.

Nickel Industries was also able to sell a record 34,427 tonnes of nickel over the quarter, an 18% jump from the previous quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) did fall over the quarter, dropping from US$97.6 million down to US$85.1 million. Still, Nickel Industries had US$1.3 billion in cash and inventory in the bank as of 31 December.

Also worth noting was Nickel Industries’ new share buyback program. In addition to a more generous dividend policy, the ASX 200 stock has committed to return “up to” $100 million to investors through on-market share buybacks over the coming 12 months.

So considering all of this, it’s not hard to see why ASX 200 investors might be keen to buy up Nickel Industries shares right now. Despite these healthy gains though, the Nickel Industries share price remains down by more than 28% over the past 12 months.

The post This ASX 200 stock has rocketed 42% in six days. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Gold Road, Ioneer, Megaport, and Nickel Industries shares are roaring higher
• Guess which ASX 200 stock is up 17% on big news
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 stocks starting the new year at near 52-week lows

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 S&P/ASX 200 Index (ASX: XJO) was down 0.4% in early morning trade today and just about flat at 11:30am AEDT. That’s when the Australian Bureau of Statistics (ABS) released the latest Consumer Price Index (CPI) data.

In the minutes that followed, ASX 200 investors sent the benchmark index soaring to be up 0.3% for the day, though it’s since given back much of those gains.

Here’s why the latest batch of CPI data sent the benchmark index sharply higher.

ASX 200 investors celebrating CPI data

The ASX 200 is charging higher following news that inflation in Australia increased 0.6% in the December quarter and 4.1% annually. That’s significantly below analysts’ consensus expectations of a 4.3% annual increase in inflation.

And it represents a massive improvement on the blistering 7.8% peak annual CPI levels reported in December 2023.

This looks to be giving ASX 200 investors hope that Australia’s official cash rate of 4.35% (up from a rock bottom 0.10% on 3 May 2022 when the RBA began its rapid tightening cycle) has peaked.

ABS head of prices statistics Michelle Marquardt said, “While prices continued to rise for most goods and services … this was the smallest quarterly rise since the March 2021 quarter.”

The biggest contributors to the ongoing price rises Down Under were housing, up 1.0%; alcohol and tobacco, up 2.8%; insurance and financial services, up 1.7%; and food and non-alcoholic beverages, up 0.5%.

Commenting on the 1.5% increase in the price of new dwellings purchased by owner occupiers fuelling the big increase in housing prices, Marquardt said:

Higher labour and material costs contributed to price rises this quarter for construction of new dwellings. The 1.5% increase is slightly higher than the 1.3% rise in September 2023 quarter.

And renters weren’t spared some extra cost of living pain either. Rental prices rose 0.9% for the quarter, down from a 2.2% increase in the September quarter. However, excluding the changes to Commonwealth Rent Assistance, rental prices would have increased by 2.2%.

Though that doesn’t appear to be spooking ASX 200 investors today.

Now what?

The next RBA interest rate decision will be announced on Tuesday, 6 February.

While inflation is still more than twice the lower end of the RBA’s 2% to 3% target range, today’s promising figures make another interest rate hike from the central bank significantly less likely.

Though it would be premature for ASX 200 investors to factor in the first RBA interest rate cut just yet.

The post ASX 200 off to the races as Australia’s inflation data surprises to the downside appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• ASX 200 record! Here’s why Aussie shares are on the cusp of a new all-time high
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares 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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The Sayona Mining Ltd (ASX: SYA) share price pain continues on Wednesday.

At the time of writing, the lithium miner’s shares are down 12% to a new 52-week low of 3.7 cents.

This means that Sayona Mining’s shares are now down 86% over the last 12 months.

Why is the Sayona Mining share price crashing today?

Investors have been rushing to the exits today after the company revealed just how bad things are getting due to weak lithium prices.

According to its quarterly update, Sayona Mining reported a 76% decline in revenue quarter on quarter to $23 million.

But it gets much worse. To generate this revenue, Sayona spent approximately $77.6 million on production, staff costs, and administration.

This ultimately led to its cash balance falling from $233 million to $158 million during the three months.

Lithium price weakness starts to bite

During the three months, the company experienced a sizeable 52% quarter on quarter decline in its average realised selling price to A$946 per dry metric tonne (dmt).

At the same time, the company’s unit operating cost increased 14% to A$1,397 per dmt.

This means that it is operating with a negative margin of A$451 per dmt and losing considerable money every time it pulls lithium out of the ground and sells it.

Clearly this isn’t sustainable. And judging by the Sayona Mining share price performance today, the market appears to believe that something will have to give. This could mean following in the footsteps of Core Lithium Ltd (ASX: CXO) by suspending operations to conserve cash.

It is worth noting that Sayona Mining recently announced an operational review to optimise its cost structure. And while it hinted that it hoped to continue mining activities through the cycle, it is going to be very difficult with a realised selling price of just A$946 per dmt.

The results of the review are expected during the current quarter.

The post Sayona Mining share price crashes 12% as weak lithium prices start to bite appeared first on The Motley Fool Australia.

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More reading

• Why Credit Corp, Incitec Pivot, Sayona Mining, and Weebit Nano shares are dropping
• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares
• Why Block, Domino’s, IDP Education, and Sayona Mining shares are sinking like stones today
• Why is the Sayona Mining share price crashing 9% 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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The S&P/ASX 200 Index (ASX: XJO) has fought back from a red morning and is pushing higher in afternoon trade thanks to cooling inflation. At the time of writing, the benchmark index is up 0.2% to 7,616.9 points.

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

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is up 9% to 12 cents. This follows the release of the infant formula company’s quarterly update. Bubs recorded a 79.7% increase in gross revenue to $25.7 million for the three months ended 31 December. The United States business was the star performer, delivering a 498% increase in gross revenue to $13.7 million. It now represents 53% of total gross revenue.

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price is up 4.5% to $8.51. This has been driven by the iron ore miner’s third quarter update this morning. Champion Iron posted record quarterly production of 4wmt, which underpinned revenue of C$507 million and EBITDA of C$247 million.

Playside Studios Ltd (ASX: PLY)

The Playside Studios share price is up 21% to 72.5 cents. Investors have been buying this game developer’s shares after it reported a record quarterly performance. Playside revealed record quarterly revenue of $20.7 million and positive unaudited EBITDA of $8 million. The latter is almost double what was recorded in the previous quarter.

Select Harvests Ltd (ASX: SHV)

The Select Harvests share price is up 16% to $3.70. This morning, this almond producer released a trading update and revealed that its 2024 crop is looking strong. This is good timing because it also advised that global almond market conditions are increasingly positive. It notes that market prices for almonds are rising, particularly for higher grade material, and export markets are becoming increasingly active.

The post Why Bubs, Champion Iron, Playside Studios, and Select Harvests shares are charging higher appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX All Ords share is jumping 18% following its quarterly update
• Here are the top 10 ASX 200 shares today
• Tripled since COVID: 2 rocketing ASX 200 stocks not too late to buy
• 2 ASX 200 shares that could surge in 2024 if the RBA cuts interest rates
• ‘Outstanding value’: 2 ASX small-cap shares ready to explode in 2024

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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The S&P/ASX 200 Index (ASX: XJO) is fighting hard to get into positive territory. At the time of writing, the benchmark index is down a fraction to 7,600.9 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price is down 3% to $17.09. Investors have been selling this debt collector’s shares following the release of its half year results. Credit Corp reported a statutory loss after tax of $12.1 million for the period. Though, on an underlying basis, its profits would have been up 5% to $33.5 million.

Incitec Pivot Ltd (ASX: IPL)

The Incitec Pivot share price is down 8% to $2.68. This has been driven by the industrial chemicals company’s shares going ex-return on capital this morning. Incitec Pivot is returning $500 million to shareholders via a $0.1557 per share equal capital reduction and an unfranked special dividend of $0.1017 per share. The special dividend will be paid to eligible shareholders next week on 8 February.

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price is down 9.5% to 3.8 cents. This follows the release of the lithium miner’s quarterly update this morning. That update revealed a 76% decline in revenue quarter on quarter to $23 million. More importantly, management reported that its unit operating cost increased to A$1,397 per tonne, which is significantly more than its realised selling price of $946 per tonne.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is down 8.5% to $3.53. Investors have been selling the semiconductor company’s shares after it reported quarterly revenue of less than $500,000. As a comparison, prior to today, Weebit Nano’s market capitalisation was over $700 million. In light of this, it may not be surprising to learn that it is one of the most shorted shares on the ASX.

The post Why Credit Corp, Incitec Pivot, Sayona Mining, and Weebit Nano shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Why is the Weebit Nano share price crashing 10% today?
• Morgans names the ASX cyclical shares to buy for earnings season
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares

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The Liontown Resources Ltd (ASX: LTR) share price is in the red today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed yesterday trading for $1.03. In morning trade on Wednesday, shares are swapping hands for $1.00, down 2.5%.

For some context the ASX 200 is down 0.29% at this same time.

This follows the release of the lithium miner’s quarterly update for the three months ending 31 December.

Here are the highlights.

ASX 200 lithium stock slips amid ongoing lithium price headaches

The Liontown share price is sliding despite the company highlighting that its Kathleen Valley Lithium Project remains on budget and on schedule for first production in mid-2024.

The project, located in Western Australia, is now more than 72% complete. Underground mine development kicked off in November.

Open pit mining was also reported to have progressed in line with plans. Liontown mined 1.4 million bulk cubic metres during the quarter.

In preparation for the startup, the ASX 200 miner said it had  222 full-time employees at the end of 2023, with recruitment ongoing.

The quarter just past also saw Liontown execute a long-term Port Access and Services Agreement with Mid West Ports Authority. This will facilitate the export of lithium spodumene concentrate from the Port of Geraldton.

And on 20 October, Liontown completed a $365 million institutional placement. This was supplemented by a $10.8 million placement to chairman Tim Goyder and a $13.8 million Shareholder Purchase Plan.

What did management say?

Commenting on the quarterly results that have so far failed to boost the Liontown share price today, managing director Tony Ottaviano said:

Of the many milestones reached this quarter, the commencement of underground mining was significant and on schedule.

The team has done an outstanding job in seamlessly mobilising to site, commencing six access portals, and achieving 352 total development metres in less than two months. Byrnecut will progressively mobilise further resources to site as we ramp up operations.

Ottaviano added, “I remain confident in our ability to deliver Kathleen Valley, our Tier-1 lithium project, on budget and schedule to first production by mid-2024.”

Addressing the capital-preserving decision to delay the project expansion — which was announced on 22 January and saw the Liontown share price close the day down a precipitous 21% — Ottaviano said:

Post the end of the quarter, we announced that we have commenced a review to examine the options of deferring the mine expansion from 3Mtpa to 4Mtpa until market conditions improve.

The decision to undertake a review of the planned expansion and associated ramp-up of Kathleen Valley was based on short- to medium-term lithium price forecasts, which have materially declined in recent months, including an almost 60% drop since October 2023.

As at 31 December, the company had a cash balance of $517 million.

Liontown share price snapshot

There have been some big ups and downs for the Liontown share price over the past 12 months. The ASX 200 lithium stock surged in March following a takeover offer from Albemarle Corp (NYSE: ALB), which eventually did not go through.

But the miner hasn’t escaped the impacts of the crashing lithium price, which sees the Liontown share price down 40% since this time last year.

The post Liontown share price slips as plunging lithium price outweighs pending maiden production 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 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 Weebit Nano Ltd (ASX: WBT) share price is having a difficult session on Wednesday.

In morning trade, the semiconductor company’s shares are down 10% to $3.48.

Why is the Weebit Nano share price crashing into the red?

Investors have been hitting the sell button today after the company released its quarterly update and revealed barely any revenue.

According to the release, Weebit Nano received its first intellectual property (IP) licensing revenues for its embedded ReRAM during the quarter. This pulled in revenue of $457,000 for the period.

As a comparison, the current Weebit Nano share price implies a market capitalisation of approximately $670 million.

This is higher than the market capitalisations of companies such as Core Lithium Ltd (ASX: CXO), Kogan.com Ltd (ASX: KGN), Myer Holdings Ltd (ASX: MYR), and Tyro Payments Ltd (ASX: TYR).

Given this woeful revenue generation and lofty valuation, it won’t be a surprise to learn that short sellers are targeting it and labelling it as another Brainchip Holdings Ltd (ASX: BRN) meme stock.

Nevertheless, management remains very positive on the future and is spending heavily on its operations. This led to an operating cash outflow of $12 million for the quarter, reducing its cash balance to $72 million from $84 million.

It also believes that these early revenues are just the tip of the iceberg, though time will tell if that is the case. It said:

While initial proceeds from licensing fees are relatively small, totaling A$457,000, they demonstrate the Company’s significant technical progress in recent years. Weebit’s embedded ReRAM will generate revenues from foundries, IDMs, and product companies in three main ways: licensing fees for design and manufacture; engineering fees for designs and processes; and royalties per customer use. Royalties will be received once customers begin shipping end products.

In 2024, Weebit expects to continue receiving initial small licensing and NRE payments from its existing customers, as well as others which will be signed up during the year. As it takes customers more than a year and a half from when they engage with Weebit until they enter mass production, no royalty payments are expected in 2024.

The Weebit Nano share price is down 30% over the last 12 months.

The post Why is the Weebit Nano share price crashing 10% today? appeared first on The Motley Fool Australia.

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More reading

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• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares 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 positions in and has recommended Kogan.com and Tyro Payments. The Motley Fool Australia has recommended Kogan.com and Tyro Payments. 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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